12 files changed, 97617 insertions, 0 deletions

diff --git a/.gitattributes b/.gitattributes
new file mode 100644
index 0000000..6833f05
--- /dev/null
+++ b/.gitattributes
@@ -0,0 +1,3 @@
+* text=auto
+*.txt text
+*.md text
diff --git a/38655-0.txt b/38655-0.txt
new file mode 100644
index 0000000..441a643
--- /dev/null
+++ b/38655-0.txt
@@ -0,0 +1,23670 @@
+The Project Gutenberg EBook of Principles of Political Economy, Vol. II, by 
+William Roscher
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+
+Title: Principles of Political Economy, Vol. II
+
+Author: William Roscher
+
+Translator: John J. Lalor
+
+Release Date: January 23, 2012 [EBook #38655]
+
+Language: English
+
+Character set encoding: UTF-8
+
+*** START OF THIS PROJECT GUTENBERG EBOOK PRINCIPLES POLITICAL ECONOMY, VOL II ***
+
+
+
+
+Produced by Frank van Drogen, Carol Brown, Gwen Adams,
+Elizabeth Oscanyan, and the Online Distributed Proofreading
+Team at https://www.pgdp.net.
+
+
+
+
+
+Transcriber's Note:  A monospaced font will display the tables in this book
+better than a variable-spaced font.
+
+
+
+
+           PRINCIPLES
+
+               OF
+
+       POLITICAL ECONOMY
+
+               BY
+
+        WILLIAM ROSCHER,
+
+  PROFESSOR OF POLITICAL ECONOMY AT THE UNIVERSITY OF LEIPZIG,
+    CORRESPONDING MEMBER OF THE INSTITUTE OF FRANCE, PRIVY
+       COUNSELLOR TO HIS MAJESTY, THE KING OF SAXONY.
+
+  FROM THE THIRTEENTH (1877) GERMAN EDITION.
+
+  WITH ADDITIONAL CHAPTERS, FURNISHED BY THE AUTHOR, FOR THIS FIRST
+  ENGLISH AND AMERICAN EDITION, ON
+
+  PAPER MONEY, INTERNATIONAL TRADE, AND THE
+        PROTECTIVE SYSTEM;
+
+        AND A PRELIMINARY
+
+  ESSAY ON THE HISTORICAL METHOD IN POLITICAL ECONOMY
+
+        (From the French)
+
+         BY L. WOLOWSKI,
+
+     THE WHOLE TRANSLATED BY
+
+       JOHN J. LALOR, A. M.
+
+            VOL. II.
+
+  [Illustration: Printer's Logo]
+
+           NEW YORK:
+        HENRY HOLT & CO.
+             1878.
+
+
+  Entered according to Act of Congress, in the year eighteen hundred
+  and seventy-eight,
+
+       BY CALLAGHAN & CO.,
+  In the office of the Librarian of Congress, at Washington, D. C.
+
+  DAVID ATWOOD, STEREOTYPER AND PRINTER, MADISON, WIS.
+
+
+
+
+              TO
+
+     WILLIAM H. GAYLORD, ESQ.,
+
+     _COUNSELOR AT LAW_,
+       OF CLEVELAND, OHIO,
+
+  TO WHOSE BROTHERLY CARE IT IS LARGELY DUE THAT I LIVED TO
+        TRANSLATE THEM,
+
+         THESE VOLUMES
+
+  ARE AFFECTIONATELY INSCRIBED.
+
+
+
+
+BOOK III.
+
+DISTRIBUTION OF GOODS.
+
+
+
+
+CHAPTER 1.
+
+INCOME IN GENERAL.
+
+
+SECTION CXLIV.
+
+RECEIPTS.--INCOME.--PRODUCE.
+
+The idea covered by the word receipts (_Einnahme_) embraces all the new
+additions successively made to one's resources within a given period of
+time.[144-1] Income, on the other hand, embraces only such receipts as
+are the results of economic activity. (See §§ 2, 11.) Produce (_Ertrag_,
+_produit_) is income, but not from the point of view of the person or
+_subject_ engaged in a business of any kind, but from that of the
+business itself, or of the _object_ with which the business is
+concerned, and on which it, so to speak, acts.
+
+Income is made up of products, the results of labor and of the
+employment and use of resources. These products, the producer may either
+consume himself or exchange against other products, to satisfy a more
+urgent want.[144-2] Hence, spite of the frequency with which we hear
+such expressions as these: "the laborer eats the bread of his employer;"
+"the capitalist lives by the sweat of the brow of labor;" or, again, a
+manufacturer or business man "lives from the income of his
+customers,"[144-3] they are entirely unwarranted. No man who manages his
+own affairs well, or those of a household, lives on the capital or
+income of another man; but every one lives on his own income, by the
+things he has himself produced; although with every further development
+of the division of labor, it becomes rarer that any one puts the
+finishing stroke to his own products, and can satisfy himself by their
+immediate consumption alone. Hence we should call nothing diverted or
+derived income except that which has been gratuitously obtained from
+another.[144-4]
+
+     [Footnote 144-1: Including of course, gifts, inheritances,
+     lottery prizes, etc.]
+
+     [Footnote 144-2: Thus the original income of the peasant
+     consists in his corn, of the miller in his flour, of the
+     baker in his bread, of the shoemaker in his shoes. The money
+     which circulates among all these and the purchaser, is only
+     the means of exchanging that part of their products which
+     they cannot themselves use, for other goods. Money, on the
+     other hand, was the original income of the producers of the
+     gold or silver it contains. Compare _Mirabeau_, Philosophie
+     rurale, 1763, ch. 3. _Adam Smith_, II, ch. 2. But
+     especially, see _J. B. Say_, Traité II, ch. 1, 5; and
+     _Sismondi_, N. P., I, 90, 376, in which it is correctly
+     said, that the quality which constitutes anything capital or
+     income does not inhere in the thing itself, but depends on
+     the person. Compare, however, I, 148; _Hermann_, Staatsw.
+     Untersuch. 297 ff., 33 seq.]
+
+     [Footnote 144-3: A fundamental thought in _St. Chamans_, Du
+     Système d'Impôt, 1820. Nouvel Essai sur la Richesse des
+     Nations, 1824.]
+
+     [Footnote 144-4: Thus, for instance, the support given by
+     the head of a family to the members thereof; also gifts,
+     alms, thefts. Even _A. L. Schlözer_, St. A., II, 487, will
+     allow that no one "eats the bread of another," but the
+     person who has received it from the latter by way of favor
+     and for nothing. In the case of a rented house, there is
+     only an exchange of objects of income. The person to whom it
+     is rented gives up a portion of his, and the renting party
+     the use of his house. Similarly, in the case of personal
+     services. Writers who maintain that only certain kinds of
+     useful labor are productive, must of course extend the
+     limits of diverted income much farther. See _Lotz_,
+     Handbuch, III, § 133; _Rau_, Lehrbuch, I, §§ 248, 251.
+     _Cantillon_ thinks that if no landowner spent more than his
+     income, it would be scarcely possible for any one else to
+     grow rich. (Nature du Commerce, 75.) According to _Stein_,
+     Lehrbuch, 347, every one gets his income from the income of
+     other people!]
+
+
+SECTION CXLV.
+
+INCOME.--GROSS, FREE AND NET.
+
+In all _income_, we may distinguish a _gross_ amount, a _net_ amount and
+a _free_ amount.[145-1] The gross income of a year, for instance,
+consists of all the goods which have been newly produced within that
+time. The net[145-2] income is that portion of the former which remains
+after deducting the cost of production (§ 106), and which may therefore
+be consumed without diminishing the original resources. Only the new
+values incorporated in the new commodities make up the net income.
+Evidently, a great portion of what is considered in one business the
+cost of production is net income in a great many others; as for
+instance, what the person engaged in one enterprise in production has
+paid out in wages and interest on capital. By means of this outlay, a
+portion of his circulating capital is drawn by others as income, and, on
+the other hand, a portion of their original income is turned into a
+portion of his circulating capital.[145-3] _Free_ income, I call that
+portion of net income which remains available to the producer after his
+indispensable wants have been satisfied.
+
+An accurate kind of book-keeping which keeps these three elements of
+income separate is more generally practicable as civilization advances.
+We might call it the _economic balance_. Where commerce is very thriving
+it is even customary to provide by law that those classes who need it
+especially should have this species of book-keeping. People in a lower
+stage of cultivation, with their poetical nature, are unfriendly to such
+calculations.[145-4] [145-5] And where natural-economy (_Naturalwirthschaft_)
+or barter prevails, a book-keeping of this kind of any accuracy is scarcely
+practicable. The ratio which net income bears to gross income is a very
+important element to enable us to judge of the advantageousness of any
+method of production. If every producer should succeed in consequence of
+keeping his books in this manner, in determining exactly the cost to him of
+each of his products, this would be an economic progress similar to that of
+general spread of good chemical knowledge in the arts. On the amount of
+_free_ income, on the other hand, depends all the higher enjoyment of life,
+all rational beneficence, and the progressive enrichment of mankind.[145-6]
+
+     [Footnote 145-1: Similarly in _Sismondi_, N. P., II, 330,
+     and _Rau_, Lehrbuch, I, § 71, a.]
+
+     [Footnote 145-2: Called by _Hermann_, loc. cit., simply
+     income.]
+
+     [Footnote 145-3: This truth _J. B. Say_ has exaggerated to
+     the extent of claiming that gross and net income are one and
+     the same so far as entire nations are concerned. (Traité,
+     II, ch. 5; Cours pratique, III, 14; IV, 74.) But the gross
+     profit of the entire production of any one year is much
+     greater than the simultaneous net income of all the
+     individuals engaged in it. This is accounted for by the fact
+     that in such production an amount of circulating capital is
+     invested which was saved from the net profit of previous
+     economic times. Compare _Storch_, Nationaleinkommen, 90 ff.
+     _Kermann_, loc. cit., 323 ff.]
+
+     [Footnote 145-4: In the East, a valuation by one's self of
+     his property is considered a guilty kind of pride, usually
+     punished by the loss of one's possessions. (_Burckhardt_,
+     Travels in Arabia, I, 72 ff.) See _Samuel_, 24, on the
+     census made by David. The Egyptians, however, as may be
+     inferred from their monuments, must have very early and very
+     extensively felt the want of some kind of book-keeping such
+     as we have mentioned. A very accurate sort of book-keeping
+     among the more highly cultured Romans, with a daily
+     memorandum and a monthly book with entries from the former
+     (_adversaria-tabula expensi et accepti_). Compare _Cicero_,
+     pro Roscio, com. 2, 3; pro Cluent, 30; _Verr._, II, 1, 23,
+     36. The Latin _putare_, from _putus_, pure, means: to make
+     an account clear, and therefore corresponds to the American
+     provincialism, "I reckon," i. e., I believe; and is a
+     remarkable proof of a rigid method of keeping accounts. The
+     Italian, or so-called double-entry method of book-keeping,
+     which gives the most accurate information on the profit from
+     every separate branch of business, became usual among the
+     nations of modern Europe whose civilization was the first to
+     ripen, about the end of the fifteenth century. Its invention
+     is ascribed to the monk Luca Paciolo di Borgo S. Sepolcro.
+
+     In England, this kind of book-keeping is very gradually
+     coming into use even among farmers, while _Simond_, Voyage
+     en Angleterre, 2 ed., II, 64, _Dunoyer_, Liberté du Travail,
+     VIII, 5, say, "it would in France be considered as
+     ridiculous as the book-keeping of an apple vendor." In
+     Germany, there have been for some time past, manufactories
+     of commercial books. Besides, the remarkable difference
+     brought out by the income tax in England between the exact
+     statements made by large manufacturers, etc., and by those
+     engaged in industry on a medium or small scale, bears
+     evidence of the better way in which the former keep their
+     accounts, the cause and effect of their better business in
+     general. Compare _Knies_, in the Tübing. Zeitschr., 1854,
+     513. On the best mode of determining income, see _Cazaux_,
+     Eléments d'Économie publique et privée, Livre, II. It is
+     especially necessary to keep an account of the increase or
+     diminution, even when accidental, of the value of the fixed
+     capital employed.]
+
+     [Footnote 145-5: The Code de Commerce, I, art. 8, requires
+     that every merchant should keep a journal, paged and
+     approved by the authorities, showing the receipts and
+     disbursements of each day, on whatever account, and also the
+     monthly expenditures of his family. Besides, he is required
+     to make a yearly inventory of his debits and credits,
+     subscribe to it and preserve it. That such books were
+     excellent judicial evidence may be shown by Italian statutes
+     of the fourteenth century. (_Martens_, Ursprung des
+     Wechschrechts, 23.) Those of Germany even in 1449.
+     (_Hirsch_, Danziger Handelsgeschichte, 232.)]
+
+     [Footnote 145-6: Importance of the so-called "transferring
+     to credit," where a business man considers his business as
+     an independent entity and as distinct from himself.]
+
+
+SECTION CXLVI.
+
+NATIONAL INCOME.--ITS STATISTICAL IMPORTANCE.
+
+Among the most important[146-1] but also the most difficult objects of
+statistics, that book-keeping of nations, is national income. In
+estimating it, we may take our starting point from the goods which are
+elements of income, or from the persons who receive them as
+income.[146-2]
+
+In the former case the gross national income consists:
+
+A. Of the raw material newly obtained in the country.
+
+B. Of imports from foreign countries, including that which is secured by
+piracy, as war-booty, contributions, etc.
+
+C. The increase of values which industry[146-3] and commerce add to the
+first two classes up to the time of their final consumption.
+
+D. Services in the narrower sense and the produce (_Nutzungen_) of
+capital in use.
+
+All these several elements, estimated at their average price in money,
+which supposes that all purchases, especially those under the head D,
+are made voluntarily[146-4] and at their natural price.
+
+To find the national net income, we must deduct the following items:
+
+A. All the material employed in production which yields no immediate
+satisfaction to any personal want.[146-5]
+
+B. The exports which pay for the imports.
+
+C. The wear and tear of productive capital and capital in use.
+
+In the second case the net national income is to be calculated from the
+following items:
+
+A. From the net income of all independent private businesses etc.[146-6]
+
+B. From the net income of the state, of municipalities, corporations and
+institutions, derived from their own resources.
+
+C. Under the former heads must be taken into the account such parts of
+property as have been immediately consumed and enjoyed.[146-7]
+
+D. Interest on debt must be added only on the side of the creditor, and
+deducted from the income of the debtor; otherwise, _error dupli_. This
+does not apply to taxes or church dues because the subjects of a good
+state and members of a good church purchase thereby things which are
+really new and of at least equal value to the outlay. Besides, in both
+instances, it is necessary to calculate the number of men who live from
+the national income, the average amount of their indispensable wants,
+and the average price in money of the same, in order to determine the
+_free_ national income by deducting the sum total of these average
+wants, estimated at this average price.[146-8] [146-9]
+
+     [Footnote 146-1: Not only to compare the happiness and power
+     of different nations with one another, but also for purposes
+     of taxation, the profitableness and innocuousness of which
+     suppose the most perfect adaptation to the income of the
+     whole people.]
+
+     [Footnote 146-2: The former, in _Rau_, Lehrbuch, I, § 247;
+     the latter in _Hermann_, 308 ff. The former mode of
+     calculation gives us a means of judging of the comfort of
+     the people, their control of natural forces, etc.; the
+     second, of the relation of classes among the people. (_v.
+     Mangoldt_, Grundriss, 99. V. W. L., 316 ff.) Each member of
+     the nation produces his income only in the whole of the
+     nation's economy. Hence _Held_, Die Einkommensteuer, 1872,
+     70, 77, would, but indeed only under very abstract fictions,
+     construct private income from the national, and not _vice
+     versa_.]
+
+     [Footnote 146-3: On the average degree of this increase of
+     values in different industries, see _Chaptal_, De
+     l'Industrie française, II, passim. _Bolz_, Gewerbekalender
+     für, 1833, 111. No such scale can be lastingly valid,
+     because, for instance, almost all technic progress decreases
+     the appreciation of values through industry, and every
+     advance made by luxury raises the claims to refined quality
+     etc. See _Hildebrand_, Jahrbücher für Nat-Oek., 1863, 248
+     ff.]
+
+     [Footnote 146-4: Many items in Class D evade all
+     calculation. Thus, for instance, the numberless cases of
+     personal services which are enjoyed only by the doer
+     himself; also the greater number of products
+     (_Nutzungen_=usufruct) of capital in use for the consumption
+     of the owner himself. (Latent income.) Only, it may be, in
+     the case of dwelling houses, equipages, etc., that the
+     consumption by use can be estimated in accordance with the
+     analogy of similarly rented goods.]
+
+     [Footnote 146-5: The principal materials consumed in
+     manufactures are of course not to be deducted here, because
+     the increase in their value was taken into account above.]
+
+     [Footnote 146-6: When an artist who earns $10,000 per annum
+     appears in a country, the gross national income increases in
+     a way similar to that in which it increases when a new
+     commodity is found which would have a yearly increase of
+     value equal to $10,000 over and above that of the raw
+     material. Cost of production in the case of such a virtuoso
+     is scarcely to be alluded to. Nearly his entire income, with
+     the exception of his traveling expenses, etc., is net, and
+     the greater portion of it _free_. An income tax would affect
+     his hearers after as it did before, and in his income, find
+     a completely new object. _Per contra_, see Saggi economici,
+     I, 176 f.]
+
+     [Footnote 146-7: For purposes of taxation, where a relative
+     valuation is more the question than an absolute one, it
+     would be sufficient to assume that every household consumed
+     clothing, utensils, etc., in proportion to the rest of their
+     income. Hence, these items might, unhesitatingly, be omitted
+     altogether.]
+
+     [Footnote 146-8: Mathematically demonstrated by _Fuoco_,
+     Saggi economici, II, 102 ff.]
+
+     [Footnote 146-9: The gross income of British Europe is
+     estimated by _Pebrer_, Histoire financière et statistique
+     générale de l'Empire Br., 1834, II, 90, at £514,823,059,
+     viz.: agriculture, £246,600,000; mining, 21,400,000;
+     manufactures, after deduction made of the raw material,
+     £148,050,000; internal and coast trade, £51,975,060; foreign
+     commerce and navigation, £34,398,059; banking, £4,500,000;
+     interest from foreign countries, £4,500,000. By _Moreau de
+     Jonnés_, Statist de la Gr. Br., 1837, I, 312, it is
+     estimated at 18,000,000,000 francs, from which, however, the
+     raw material used in industry is not deducted. The net
+     income of Great Britain was estimated by Pitt, in 1799, at
+     £135,000,000, of which £25,000,000 were received by
+     landowners for rent, £25,000,000 by farmers, £5,000,000 were
+     tithes, £3,000,000 from forests, canals, and mines,
+     £6,000,000 from houses, £15,000,000 from state funds,
+     £12,000,000 from foreign commerce, £28,000,000 from inland
+     commerce and manufactures, £3,000,000 from fine arts,
+     £80,000,000 from Scotland, £5,000,000 from foreign
+     countries. (_Gentz_, Histor. Journ., 1799, I, 183 ff.)
+     _Lowe_, England in its present Situation, 1822, p. 246,
+     speaks of 255,000,000. About 1860, the incomes subject to
+     taxation alone, that is, all above £100, amounted to
+     335,000,000. The remainder was certainly worth one-half of
+     this. (Statist. Journ., 1864, 121.) _Baxter_, in 1867,
+     assumed it to be £825,000,000. Compare _L. Levi_, on
+     Taxation, 6.
+
+     In France, about forty years ago, according to Chaptal,
+     Doudeauville, Balbi and others, about 6,500,000,000 francs
+     gross national income could be counted on. _Schnitzler_
+     speaks of 7,000,000,000 francs (Creation de la Richesse en
+     France, 1842, I, 392), after deduction made of the raw
+     material of manufacture. According to _Wolowski_,
+     Statistique de la Fr., 1847, it was more than 12,000,000,000
+     francs. _M. Chevalier_, Revue des deux Mondes, March 15,
+     1848, has it 10,000,000,000 at most. In these four
+     estimates, only material products are taken into account.
+     _Ch. Dupin_ thinks the income per capita was, in 1730, = 108
+     francs; in 1780, = 169; in 1830, = 269. _Cazeaux_, Eléments,
+     163, estimated the net national income, in 1825, at
+     5,000,000,000 francs; _Cochut_, in 1861, at 16,000,000,000.
+     (Revue des deux Mondes, XXXVII, 703.)
+
+     In Spain, _Borrego_, Nationalreichthum, etc. Spaniens, 1834,
+     33, estimated the income from agriculture at 2,284,000,000
+     francs; from industry, etc., 361,000,000; commerce,
+     124,000,000; from houses, 186,000,000; canals, streets etc.,
+     8,500,000; personal services, 75,000,000; money in
+     circulation (probably loaned capital), 85,000,000.
+
+     In the United States, in 1840, the national income was
+     estimated at over $1,063,000,000; from agriculture, over
+     $654,000,000; from manufactures, nearly $240,000,000;
+     commerce, almost $80,000,000; mining, over $42,000,000; from
+     lumber (_Wäldern_), almost $17,000,000; and from the
+     fisheries, almost $12,000,000. The per capita amount of
+     income was $62. It was largest in Rhode Island--$110; in
+     Massachusetts it was $103; in Louisiana, $99; and in Iowa,
+     smallest, $27; in Michigan, it was $33. Compare _Tucker_,
+     Progress of the United States, 195 ff. The census of 1860
+     assumes the national wealth, slaves not included, at
+     $14,183,000,000, that is $451 per capita, with a per capita
+     annual income of $112. According to _Czörnig_, the gross
+     income of Austria, from agriculture, the chase and
+     fisheries, in 1861, was 2,119,000,000 florins; from mining,
+     41,000,000; from the industries, 1,200,000,000. In Prussia,
+     the net national income, not including the revenue from
+     state property, nor the income of the royal household,
+     seems, from the returns of the income and _class_ tax, to
+     have been about 2,458,000,000 thalers, in 1874. _Engel_,
+     Preuss. Statist. Ztschr., 1875, 133. The majority of the
+     above estimates are obviously unreliable.]
+
+
+SECTION CXLVII.
+
+NATIONAL INCOME.--ITS STATISTICAL IMPORTANCE.
+[CONTINUED.]
+
+The question frequently discussed, whether it is more advantageous to
+increase the gross income or the net income[147-1] of a people, may be
+readily answered with the assistance of our tripartite division. Since
+economic production has no other object than the satisfaction of human
+wants, the mere increase of the gross income of a people is a matter of
+indifference. An increase of the net income puts a people in a condition
+to increase either their numbers or their enjoyments. (See §§ 163 and
+239.) The most desirable condition is where both these results are
+produced. It is fortunate for a people when the _free_ income of the
+nation increases by reason of the absolute or relative decrease of the
+cost of production, which adds nothing to enjoyment. But it is
+politically and morally to be lamented when it increases at the expense
+of the satisfaction of man's necessary wants, especially if the majority
+of the people deny themselves in this respect to produce that end. Sir
+Thomas More called the sheep of his time, to make place for which so
+many farm houses were razed to the ground, ravenous beasts, which
+devoured men and laid waste city and country.[147-2]
+
+     [Footnote 147-1: The greater number of writers, at bottom,
+     understand by this question only whether greater efforts
+     should be made to increase the wages of the lower classes or
+     the rent and rate of interest on capital paid to the higher.
+     (_Schmoller_, in the Tüb. Zeitschrift, 1863, 22.)]
+
+     [Footnote 147-2: The difference between gross and net income
+     was introduced into the science principally by the
+     Physiocrates. _Vauban_ (1707) had no conception of it, and
+     thirty years later a French minister, in his instructions
+     concerning the levy of the _vingtièmes_, dimly seeing that
+     the aggregate amount of the harvest was not clear gain,
+     ordered, to obtain the latter, that the cost of reaping and
+     threshing should be deducted. (_Dupont_, Correspondence of
+     _J. B. Say_, 404, éd. Daire.) By _produit net_, _Quesnay_
+     means the excess of original production over its cost,
+     considered from the personal point of view of the individual
+     landowner. This excess, it is claimed, can alone increase
+     the national wealth and alone support the "steril" class.
+
+     The political and military bearing of this very clearly
+     recognized. (102 ff., éd Daire.) Hence _Quesnay_, favors it
+     in every way; by large farming instead of small, by stock
+     raising on a large scale, supplanting home labor by cheaper
+     foreign labor, by machinery and the employment of manual
+     labor, etc.; 91 ff., 200 ff., 274 ff. The elder _Mirabeau_
+     teaches even that the goodness of a government or of a
+     constitution, and even national morality may be inferred
+     from the amount of the _produit net_. (Ph. rurale, ch. 5.)
+     _Stewart_, Principles, I, ch. 20. _Adam Smith_ gives greater
+     prominence to the gross income, and grades the principal
+     branches of national labor according as they increase the
+     gross product of the nation's economy. (II, chs. 1, 5.)
+     Similarly, _J. B. Say_, Traité, ch. 8, § 3; _Lauderdale_,
+     Inquiry, 142.
+
+     _Ricardo_ thoroughly reacts against this view, and considers
+     it a matter of indifference whether a net product (interest
+     on capital and rent) of a given amount be obtained by the
+     labor of five or seven million other men, so long as only
+     five million can live on it. (Principles, ch. 26.) Similarly
+     _Ganilh_, Systèmes, I, 218 ff.; Théorie, II, 96.
+     Controverted by _Malthus_, Principles, II, § 6. _Buquoy_,
+     Theorie der Nat. Wirthsch., 1815, 310 ff. _Sismondi_ has
+     ridiculed this predilection for the net product which in
+     _Ricardo_ corresponds with what the Germans call free
+     product (_freien Ertrage_), and which, contrary to Ricardo's
+     own opinion, he calls Ricardo's ideal, saying that according
+     to him, nothing more was to be desired but that "the king
+     should remain alone on the island and, by turning a crank
+     forever, do all the work of England through the
+     instrumentality of automata." (N. P., II, 330 ff.) An entire
+     people should value only gross product. (I, 183.) In his
+     Etudes, Essai, II: Du Revenu Social, _Sismondi_
+     distinguishes as elements of the gross national income: a,
+     pure capital, the return of outlay; b, that which is at once
+     both capital and income, and serves as family support
+     (capital as a necessarily remaining supply, income as the
+     product of the preceding year); c, net income, the excess of
+     production over consumption.
+
+     The Socialists of our day would prefer to see the whole net
+     income of a people employed in the satisfaction of the
+     necessary wants of an ever increasing population. By this
+     procedure, as a natural consequence, we should witness first
+     the curtailing of the taxing power, of the funds for the
+     satisfaction of the more refined wants and of the saving of
+     capital, nor would it be long before even the existing
+     generation would experience the bitterness of this "living
+     from hand to mouth." After a time, even the possibility of
+     progress and even of mere increase of population would
+     cease.
+
+     _Hermann_, Staatsw. Untersuch., 297 ff., has better than
+     almost any one else developed the theory of income, and he
+     lays most stress on the satisfaction of wants as the chief
+     aim of public economy. _Kröncke_, Das Steuerwesen, 1804, 381
+     ff.; Grundsätze einer gerechten Besteuerung, 1819, 93 f.,
+     may be considered the predecessor who prepared the way for
+     him. Compare the profound work of _Bernhardi_, Versuch einer
+     Kritik der Gründe die für grosses und kleines Grundeigenthum
+     angeführt werden, St. Petersburg, 1848. Many controversies
+     on this subject may be closed by a more accurate
+     understanding as to terms. Thus, for instance, when _Rau_,
+     Handbuch, embraces in the cost of production the necessary
+     maintenance of material-workmen, and of those engaged in the
+     labor of commerce; or when _Jacob_, Staatswissenschaft, §
+     496, and _Storch_, Einkommen, 116 ff., even the necessary
+     support of every class useful to society, their valuation of
+     the gross national income is in only apparent conflict with
+     our doctrine on the subject.]
+
+
+SECTION CXLVIII.
+
+THE TWO PHASES OF INCOME.
+
+In every income which has anything to do with other incomes, it is
+necessary to distinguish its immediately productive side, and its profit
+or acquisition side. It is necessary, in the first place, that all the
+products made by private parties should, so to speak, be put into the
+common treasury of the national economy, and that each should thence
+draw his own private revenue. Justice requires that there should be a
+perfect correlation between the two; that each should enjoy precisely
+the quota of the national income to the production of which his person
+or his property contributed. A just appreciation of the relative
+productive power of the divers branches of labor constitutes one of the
+chief bulwarks against the inroads of destructive socialistic theories.
+The person who calls a good doctor or a good judge unproductive should,
+to be consistent, call those who by their greater intelligence are
+fitted to superintend agricultural and industrial enterprises
+unproductive, also, as is done by the coarser socialists with their
+apotheosis of mere manual labor. Unfortunately, such a settlement as is
+above contemplated among the different factors of production, whose
+owners are desirous to divide the common product among them, is possible
+only where the factors of production are either of the same kind, or can
+be reduced to a common denominator.[148-1] But if justice pure and
+simple were meted out, no man could subsist. Love or charity must
+supplement justice in order to assist those (and especially such as
+without any fault of theirs) who are not able to produce anything, or
+enough to supply those wants, for instance, children and the poor.
+
+As the net national income, following the three great factors of all
+economic production, is divided into three great branches, rent, wages
+and interest on capital, the net income from any private business may be
+reduced to one or more of these branches.[148-2] The three great
+branches of income may be considered with advantage from a great many
+different points of view. We may inquire in the case of each of them:
+concerning its absolute magnitude, its relation to the aggregate
+national income, to the magnitude of the factor of production, of which
+it constitutes the remuneration; by what number of men it is shared, and
+what number of wants it satisfies.[148-3] Lastly, the difference between
+the amount stipulated for, and the original amount of both rent and
+wages, as well as the interest of capital, is of special importance. The
+former consists in the price paid by the borrower for the use of the
+factor of production to the owner; the latter in the immediate products
+which the employment of the same productive power brings on one's own
+account. Evidently, the original amount is, in the long run, the chief
+element in the determination of the stipulated amount. While the former
+depends more on the deeper and more durably effective elements of price,
+especially the cost of production, the value in use and the paying
+capacity of purchasers; the latter is conditioned more by the
+superficial variations of supply and demand, and even by custom. For our
+purposes, the former is by far the more important, but, at the same
+time, by far the more difficult to perceive.
+
+     [Footnote 148-1: This is possible between labor and capital,
+     at least in so far as a comparison can be instituted between
+     the sacrifice of human rest there is in labor and the
+     sacrifice of enjoyment in the building up of capital. But
+     the person who introduces an entirely unimproved piece of
+     land into the service of production, stands to the laborer
+     as well as to the capitalist in a relation which is entirely
+     incomparable with any other. (See § 156.) The doctrine of
+     former agriculturists, that one-half of the harvest was to
+     be ascribed to the soil and the other to the manure, would
+     not suffice here, even if it were correct. Compare _Fraas_,
+     Gesch. der Landbau- und Forstwissenschaft, 257. But in the
+     production of a calf, the coöperation of a bull and cow are
+     necessary. Yet no one is in condition to determine what
+     portion of the calf is to be accounted as belonging to
+     either. If the bull and cow belong to different owners, the
+     relation of supply and demand, and the deeper causes that
+     determine them, decide in what proportion the value of the
+     calf is to be divided among them.]
+
+     [Footnote 148-2: Among the greatest services rendered by
+     _Adam Smith_ is, his complete demonstration, that any income
+     may be resolved into one or more of the three great branches
+     of the national income. (I, ch. 6.)]
+
+     [Footnote 148-3: _Ricardo_ has not unfrequently bewildered
+     uncritical readers, by his habit--in which he is by no means
+     always consistent--of using the expressions higher and lower
+     wages, higher and lower profit of capital, to designate not
+     the absolute greatness of these branches of income, either
+     in money or in the wants of life, nor their greatness from a
+     personal point of view, but only their relative greatness as
+     compared with the aggregate income, the measure of the quota
+     of the aggregate product which is divided among workmen,
+     capitalists, etc. And yet, in the case of most economic
+     questions, this is without doubt the less interesting side.
+     Compare the polemic of _R. Jones_, On the Distribution of
+     Wealth, 1831, I, 288 ff.; _Senior_, Outlines, 142 seq.;
+     _Carey_, On the Rate of Wages, 1834, 24. Thus, according to
+     _Ricardo_, the increase of one branch is possible only at
+     the expense of another, while in the case of flourishing
+     nations, the three branches increase absolutely and
+     together. _Ricardo_, himself, was by no means unacquainted
+     with this, as may be seen from _Baumstark's_ German
+     translation of his work, pp. 37, 108 ff.]
+
+
+
+
+CHAPTER II.
+
+THE RENT OF LAND.
+
+
+SECTION CXLIX.
+
+THEORY OF RENT.
+
+Rent is that portion of the regular net product of a piece of land which
+remains after deducting the wages of labor and the interest on the
+capital usual in the country, incorporated into it.[149-1] Hence it is
+the price paid for the using of the land itself, or for what Ricardo
+calls the original inexhaustible forces of the soil which are capable of
+being appropriated.[149-2] This price also depends, of course, on the
+relation between demand and supply; the demand in turn, on the wants and
+means of payment of buyers, but the supply by no means on cost of
+production, which, from the definitions above given, is here
+unthinkable. However, land has this in common with other means of
+production, that its price is mainly determined by that of its products.
+
+     [Footnote 149-1: According to _von Thünen_, Der isolirte
+     Staat. in Beziehung auf Landwirthschaft und Nat. Oek, 1850,
+     I, 14: "what remains of the revenue of an estate after
+     deducting the interest on all the objects of value which may
+     be separated from the soil." According to _Whately_, it is
+     surplus profit. The expression "regular product" supposes,
+     among other things, an average skillfulness of the economic
+     individual. Thus, for instance, the farm-rent of a piece of
+     land generally includes besides the real rent of the land,
+     interest on much capital which is more or less firmly fixed
+     in the soil. The importance of the latter may be
+     approximately determined from the fact that in the
+     electorate of Hesse, for instance, the value of all meadow
+     lands, woods, and agricultural lands is estimated at from
+     205 to 206 millions of thalers, and the value of all the
+     houses at 100 millions. (_Hildebrand_, Statist. Mittheil.
+     über die volkswirthschaftlichen Zustände Kurhessens, 1852,
+     37.) In the English income tax of 1843, the annual value of
+     all lands in Great Britain was estimated at over 45 millions
+     sterling, that of all houses at over 38 millions. However
+     the farm-rent of a piece of land does not by any means
+     always embrace the entire rent. A part of the rent is paid
+     to the state in the form of taxes, and another portion to
+     the payment of tithes. Short leasehold terms, frequent land
+     sales, the comparatively great difficulty of disengaging
+     capital invested in the cultivation of land, the union of
+     landed proprietor, capitalist and laborer in one person
+     easily obscure the law of rent.]
+
+     [Footnote 149-2: The stores of immediate plant food in a
+     piece of land, of minerals in a mine, of salt in a salt
+     mine, etc., are subject to the law of rent only in so far as
+     they may be considered inexhaustible; that is, they are not,
+     strictly speaking, subject to it. Our definition applies all
+     the more to the capacity for cultivation, and of support or
+     bearing capacity mentioned in § 35; and hence it is easier
+     to follow the law of rent in the case of land used for
+     building purposes than for agriculture. When _v. Mangoldt_
+     claims that the exhaustibility or inexhaustibility of the
+     soil has nothing to do with rent so long as it flows evenly
+     (_so lange sie eben fliesst_) he is in harmony with his own
+     general conception of rarity-premiums
+     (_Seltenheitsprämien_).]
+
+
+SECTION CL.
+
+THEORY OF RENT. (CONTINUED.)
+
+Agricultural products of equal quantity and quality are produced on
+pieces of land of unequal fertility, even when the same amount of skill
+is displayed by the husbandman, with very different outlays of capital
+and labor.[150-1] And yet the price of these products in the same market
+is uniformly the same. This price must, on the supposition of free and
+intelligent competition, be, in the long run, at least high enough to
+cover the cost of production on even the worst soil (the margin of
+cultivation according to Fawcett), which must be brought under
+cultivation in order to satisfy the aggregate want. (See § 110.) This
+worst land need yield no rent.[150-2] The better land which, with an
+equal outlay of labor and capital, produces a greater yield, furnishes
+an excess over the cost of production.[150-3] This excess is rent,
+which, as a rule, is obviously higher in proportion as the difference in
+fertility between the worst and the better land is greater. The person
+who cultivates the land of a stranger may unhesitatingly turn this rent
+over to the owner; since, notwithstanding his so doing, all that he has
+himself contributed to production in labor and capital of his own,
+returns to him entire in the product.[150-4]
+
+According to § 34, a continual increase in the amount of labor and
+capital lavished on the fertilization of land, agricultural science
+remaining the same, leads, sooner or later to this, that every new
+addition of capital or labor becomes relatively less remunerative than
+the preceding.[150-5] The worse the land is, the sooner is this point
+reached. Hence, it necessarily happens that, with an increase in the
+aggregate want of agricultural products, greater and greater amounts of
+labor and capital are employed in the further fertilization of land, and
+that there comes to be a greater difference between the fertility of the
+worst and better lands, in consequence of which the rent of the latter
+rises.[150-6]
+
+     [Footnote 150-1: _Flotow_, Anleitung zur Abschätzung der
+     Grundstücke nach Klassen, 1820, 50 ff., estimates the cost
+     of production of a _scheffel_ of rye on land of the first
+     class, at scarcely 1½ thalers; on land of the tenth class,
+     at 3 thalers. In Hanover, it is estimated that about 60 per
+     cent. of the land devoted to gardening and agricultural
+     products produces only from 2 to 4 times the quantity of
+     seed sown; over 35 per cent. from 5 to 8 times, and 4.5 per
+     cent. from 9 to 12 times. (_Marcard_, Zur Beurtheilung des
+     Nat. Wohlstandes im Königreich Hanover, Tab. 3.) In Prussia,
+     the rates of net produce adopted by the central commission
+     in 1862 vary from 3 to 420 silver groschens per _morgen_, in
+     the case of agricultural land; from 6 to 420 in the case of
+     meadow land; in the case of pasturage, from 1 to 360. (_v.
+     Viebahn_, Statist. des Zollvereins, II, 966.) In England,
+     parliamentary investigations (1821) have shown that the best
+     land produces from 32 to 40, and the worst from 8 to 12
+     bushels per acre of wheat. (Edinburgh Review, XL, 21.) As to
+     the influence of the elevation of land, the royal Saxon
+     commission for the assessment of the value of land,
+     estimated that the net product of an acre _of_ land at a
+     height above the level of the sea,
+
+     In the case of 2d class land--
+       Of  500 feet, 55     per cent.
+       Of  800  "    52½       "
+       Of 1600  "    48        "
+       Of 2400  "    43.8      "
+
+     In the case of 11th class land--
+       42.9 per cent. of the gross yield.
+       39½     "       "       "     "
+       34      "       "       "     "
+       26      "       "       "     "]
+
+     [Footnote 150-2: The English are very fond of assuming that
+     the worst land for the time being under cultivation pays no
+     rent. (_Ricardo_, Principles, II, 2.) This fact is
+     frequently obscured by the aggregation into one economic
+     whole of land that pays no rent and land that is able to pay
+     rent. (_John Stuart Mill_, Principles, II, ch. 16, § 3.)
+     True it is that there is a great deal of land which cannot
+     be farmed out, but which can be used only by its owners.
+     Compare _Salfeld_, in the Landwirthsch. Centralb., 1871, II,
+     182 ff. On land near Wetzlar which, notwithstanding the high
+     price of land in the neighborhood, could not be farmed out
+     at auction, because no one was desirous to lease it, and
+     which was therefore turned over to the highest bidder for
+     the preceding piece, see _Stöckhardt_, Zeitschr. für
+     deutsche Landwirthe, 1861, 237. Where, however, all the land
+     has its own proprietors, the competition of farmers may
+     easily produce a rent for the worst land. It is a matter of
+     complete indifference to the theory of rent, whether the
+     worst land when possessed only by right of occupation or
+     used as pasturage for cattle previous to its cultivation,
+     had value or not. Compare _Nebenius_, Œff. Credit, I, 29;
+     _Hermann_, Staatswirthsch. Unters., 170 seq.]
+
+     [Footnote 150-3: The analogous gradation in mining may make
+     this clearer.]
+
+     [Footnote 150-4: _Ricardo_ illustrated this by the following
+     example. An uncultivated tract of country is settled by a
+     small colony. As long as there is here an excess of land of
+     the best quality, and everyone may take possession of it
+     without paying anything therefor, no rent of the land which
+     is merely occupied is possible. But if all the first class
+     land is under cultivation--land which perhaps with the
+     employment of a small amount of capital yields 5 quarters an
+     acre per annum; and the increasing population necessitates
+     the cultivation of land of the second class, which with the
+     same outlay of capital yields only 4 quarters an acre per
+     annum, there arises a rent of 1 quarter an acre per annum
+     for land of the first class. For the price, 4 quarters is
+     now high enough to cover the cost of production per acre,
+     and it must be a matter of complete indifference (complete
+     indifference?) to a new comer whether he obtains 5 quarters
+     from land of the first class as a farmer and pays out 1
+     quarter, or whether he harvests 4 quarters from second class
+     land as proprietor. If there is a further increase of
+     population, so that land of the third class also, which
+     yields only 3 quarters per acre per annum, must be brought
+     under cultivation, the price of corn rises again because the
+     cost of production has now to be covered by three quarters.
+     Land of the first class now pays a rent of 2 quarters and
+     second class land of 1 quarter. (Ch. 2.)]
+
+     [Footnote 150-5: _von Thünen_, der isolirte Staat, II, I,
+     179, estimates that a bed of manure 1/3 of an inch thick on
+     an acre of ground, increases the production by ½; that a
+     second ½ inch of manure increases the yield only by a + of
+     5/8 corn; the third of ¼ corn, etc. _Geyer_ is of opinion
+     that, in Saxony, land of the average quality will yield a
+     gross product of 60 thalers per acre, and 14 thalers net
+     product per acre, in case it is managed with the greatest
+     intelligence and the employment of a large amount of
+     capital; when managed in a very ordinary way, it would yield
+     20 thalers gross, and 7½ thalers net product. _Thünen_
+     gives the following formula determining when it is more
+     advantageous to cultivate the old land with more
+     _intensiveness_ (higher farming) than to begin the
+     cultivation of new: As long as p - _a_q is less than
+     sqrt(ap), so long is an increase of the outlay of capital on
+     the same land more profitable than the cultivation of new
+     land, and _vice versa_. Here p = aggregate product obtained
+     by a workman in a year from the amount of capital used by
+     him; a = sum of his necessary yearly wants; _a_ = the
+     interest per annum of a capital = p; q = the amount of
+     capital given to assist the individual workman.]
+
+     [Footnote 150-6: _Ricardo_ had, in every case in which
+     outlay of capital and labor of different degrees of
+     productiveness had to be used on the same land, to suppose a
+     price of the products = the cost of the least productive
+     outlay. See the tables in _Ricardo's_ work, On the Influence
+     of a low Price of Corn on the Profits of Stock, 1815, 14
+     seq. _Schmoller_, on the other hand, rightly applies the
+     principle of united costs of production in as far as the
+     usual amount of profit of the producer is added to the cost
+     of the commodity with the highest cost of production.
+     Mittheilungen des Landwirthsch. Instituts zu Halle, 1865,
+     128. Compare _supra_, §§ 106, 110.]
+
+
+SECTION CLI.
+
+THEORY OF RENT.--LAND FAVORABLY SITUATED.
+
+The favorable situation of a piece of land operates, in almost every
+politico-economical respect, in the same manner as its fertility.[151-1]
+If a market, to be fully supplied, needs to be fed from a circuit of ten
+miles, the price must be sufficient to make good not only the other cost
+of production but the freight over ten miles. Here, therefore, all
+producers living nearer to the market, who have to make a smaller outlay
+for transportation and yet obtain the same market price for their
+produce, make a profit exactly corresponding to the advantage of their
+situation.[151-2]
+
+The situation of individual pieces of land relatively to farm buildings,
+etc., operates in a similar way.[151-3]
+
+     [Footnote 151-1: _L'éloignement équivaut à la stérilité._
+     (_J. B. Say._) If we imagine with _A. Walker_ an entirely
+     uncultivated country, equally fertile in every part, settled
+     only on the coast, and divided into shares of equal breadth,
+     equally accessible at all points, so that every settler has
+     unlimited space to extend his possessions from the coast
+     into the interior, the shares situated in the middle of the
+     coast strip would be most eagerly sought after; since in its
+     vicinity, prospectively, all the institutions of the country
+     would come together. The colonist, therefore, who should
+     obtain that share as his, would, unquestionably, be in a
+     condition to pay a price for this preference, that is a
+     rent. (Science of Wealth, 296.)]
+
+     [Footnote 151-2: It is a consequence both of their
+     difference of situation and of their fertility that in the
+     Himalaya the farmers low down on the sides pay 50 per cent.
+     of the gross product as farm-rent, and higher up, 20 per
+     cent. less. (_Ritter_, Erdkunde, III, 878.) Both influences
+     may be traced most accurately in East Friesland, and in
+     similar places: marsh land, sandy land, heath land, and high
+     moorland.
+
+     Its situation influences especially the money rent of land,
+     and its quality the amount of produce. (_McCulloch_,
+     Principles, III, 5.)]
+
+     [Footnote 151-3: We need only mention the hauling of the
+     crops and of manure. According to the instructions of the
+     royal Saxon commission, above mentioned, the cost is assumed
+     to be 10 per cent. higher for a distance of 250 rods, and 20
+     per cent. higher for a distance of 500 rods.]
+
+
+SECTION CLII.
+
+THE THEORY OF RENT. [CONTINUED.]
+
+From what we have said, it follows that the rent of the land of a
+country is equal at least to the sum of all the differences between the
+product of the least productive portions of capital which have been
+necessarily laid out in the cultivation of the soil and the product of
+the other portions more productively laid out by other husbandmen. It
+may rise higher than this on account of a coalition among landowners or
+immoderate competition among farmers, who may thereby be forced to
+surrender a portion of their wages and interest on capital to the
+former; but it can never lastingly fall below this amount. If the
+landowners themselves were to surrender all claim to rent, the price of
+agricultural products would not sink if the market was kept fully
+supplied; and the excess obtained from the better land over and above
+the cost of production would go, but only in the nature of a gift, to
+the farmers, corn dealers and individual consumers.[152-1] Normal rent
+is not to be explained by any mysterious or peculiar productiveness[152-2]
+of the land that yields it, but on the contrary, by the fact that even
+material forces unexhaustible in themselves, but which can be productive
+only in combination with given parcels of land, uniformly oppose even
+successively greater difficulties to every successive and additional
+improvement.[152-3]
+
+Moreover, the capital which becomes a part of the land to such an extent
+that it cannot be separated from it, and perhaps not even distinguished
+from it at sight, such for instance as has been laid out for purposes of
+drainage or in the purchase of material intended to modify the nature of
+the soil, partakes of the character of the land itself, and its yield
+obeys the laws of rent. How frequently it happens that such improvements
+made by the farmer without the least assistance from the owner of the
+land permanently contribute to an increase of the rent. (§ 181.)[152-4]
+
+     [Footnote 152-1: Compare _J. Anderson_, An Inquiry into the
+     Nature of the Corn Laws, 1777. Extracts from the same in the
+     Edinburgh Review, LIV, 91 ff. On the other hand, _Buchanan_,
+     on Adam Smith, IV, 134, thinks that rent arises exclusively
+     from the monopoly of the owners, and that without it the
+     price of corn would be lower. It is certain, however, that
+     if the land of a country be considered as one great piece of
+     property, and under one great system of husbandry, the
+     products of the soil might be offered permanently at a price
+     corresponding to the average cost of production, on the
+     better and worse pieces of land. (_Umpfenback_, N. Oek.,
+     191.)]
+
+     [Footnote 152-2: _Malthus_, On the Policy of restricting the
+     Importation of foreign Corn, 1815. Additions, 1817, to the
+     Essay on the Principle of Population, III, ch. 8-12;
+     Principles, 217 ff.]
+
+     [Footnote 152-3: _Ricardo_ says that if air, water,
+     elasticity and steam were of different qualities, and might
+     be made objects of exclusive possession; and that if each
+     kind could be had only in a moderate supply, they would,
+     like land, produce a rent, according as they were brought
+     into use, one kind after another. In the class of natural
+     forces, also, the possession of a secret of production or of
+     inimitable skill, or a legal right to its exclusive use, may
+     produce something similar to rent. (_Senior_, Outlines, 91.)
+     _Hermann_, Staatswirthsch. Unters., 163 ff., had already
+     laid the foundation of this doctrine, and earlier yet,
+     _Canard,_ 17 seq., and _Hufeland_. I, 303 ff. See _supra_, §
+     120. Hence _v. Mangoldt_ uses the word rent to designate all
+     rarity-premiums. _John Stuart Mill_, III, ch. 5, 4.
+     _Schäffle_ speaks of the universal existence of a surplus;
+     that is, of the factor of rent (Nat. Oek., I, Aufl., 140
+     ff.), and has recently developed this into a theory
+     thoroughly systematic and detailed. (Nationalökonomische
+     Theorie der ausschliessenden Absatzverhältnisse, 1867.)
+
+     According to him, rent is "the premium paid for the most
+     economic course taken in the interest of society in
+     general;" and hence he finds rent as much in superior labor
+     and in a very advantageous outlay of capital. Yet he grants,
+     that "exclusive custom (_Kundschaft_) on the basis of
+     natural advantages occurs only in the case of land-rent."
+     (59.) And even granting that he is right, that no rent is by
+     itself forever secure (74 seq.), and that much rent is a
+     premium paid for a search after and the appropriation of the
+     best land, divination of the best situations, etc. (60 ff.,
+     74 ff.), there still remains the great difference between
+     rent and the extra income from labor and capital; that here
+     the very transitory nature of the substratum, or basis, and
+     the personal merit of the recipient, is the rule, while in
+     the former case it is a rare exception. Willingly,
+     therefore, as I recognize the possibility and fruitfulness
+     of Schäffle's way of conceiving this subject (the latter,
+     especially, for monographic purposes), I prefer, so far as
+     the entire system is concerned, the keeping apart of the
+     three branches of income corresponding to the three factors
+     of production as has been usual since Adam Smith's time.]
+
+     [Footnote 152-4: _John Stuart Mill_, ch. 16, § 5. An example
+     in _Fawcett_, Manual, 149 seq. This explains many objections
+     to Ricardo's laws, which are the result of misconception.
+     Thus, for instance, in _Schmalz_, Staatswirthschaftslehre,
+     I, 81, Quarterly Review, XXXVI, 412 ff. _Bastiat_, Harmonies
+     économiques, ch. 9, where rent is considered the interest on
+     the capital laid out in bringing land under cultivation and
+     improving it. If, however, we imagine an island to emerge
+     suddenly from the waves in the vicinity of Naples, in
+     consequence of an earthquake, no one can doubt that its land
+     would sell at a very high rate and pay a very good rent. And
+     yet no capital or labor has been laid out on it. A similar
+     lesson is taught by the fact, that, in Scotland, rocks which
+     are covered twice a day by the waves are leased for the sake
+     of the sea-weed left on them. (_Adam Smith_, Wealth of
+     Nations, I, ch. 11.) Also by the fact, that in Poulopinang,
+     a cavity in which many edible swallows' nests are found,
+     pays £500 a year rent. (Geogr. Ephemeriden, Oct., 1805,
+     134.) However, _Bastiat_, abstractly speaking, is right when
+     he says, that every one by the importation of agricultural
+     products from quarters which pay no rent, and still more by
+     emigrating thither, may deprive the owners of land of the
+     tribute imminent in rent.
+
+     But how would it be if the cost of transportation and
+     emigration amounted to more than the rent? The case
+     theoretically so important, in which all the land in the
+     world is supposed to have been appropriated as private
+     property, this writer, generally so lucid, treats in a
+     surprisingly blind way (275 ff). It is remarkable that _A.
+     Walker_, Science of Wealth, spite of his prejudices in favor
+     of Bastiat's doctrines on the gratuitous nature of all
+     natural forces, nevertheless follows, essentially,
+     _Ricardo's_ theory of rent, 294 ff.
+
+     A much more vulgar error yet is, that rent is the result of
+     the capacity of the capital employed in the purchase of the
+     land to produce some interest Thus _Hamilton_, Reports to
+     the Congress on the Manufactures of the United States, 1793,
+     and _Canard_, Principes, sec. 5. Per _contra_, compare
+     _Turgot's_ view, _supra_, § 42, note 1. Even _Locke_,
+     Considerations on the Lowering of Interest, Works, II, 17
+     ff., maintained the closest parallel between rent and
+     interest to be possible, with this difference only, that
+     money was all of a kind but pieces of land of different
+     degrees of fertility. Similarly _Sir D. North_, Discourse
+     upon Trade, 1791, with his parallel of landlord and
+     stocklord.]
+
+
+SECTION CLIII.
+
+THEORY OF RENT. (CONTINUED.)
+
+Ricardo says that rent can never, not even in the slightest degree,
+constitute an element in the price of corn. This is certainly not a very
+happy way of expressing the truth, that a high rent is not the cause,
+but the effect, of a relatively high price of corn.[153-1] Ricardo would
+have been nearer right had he said that rent was not a component part of
+the price of every portion of the supply of corn brought to market.
+
+Is rent an addition to national income? Ricardo (ch. 31) answers this
+question in the negative, and says that it takes from the consumers what
+it gives to the owners of the land, and that it increases only the value
+in exchange of the national wealth.[153-2] It is evident that as thus
+stated, the question is not properly put. Neither interest on capital
+nor wages are any addition to a nation's income, but, like rent, only
+forms of trade, by means of which that income is distributed among the
+individuals constituting the nation. (§ 201.)
+
+The special kind of product obtained from a piece of land influences its
+rent only in so far as the growth of that kind of product is exclusively
+confined either by nature, privilege or prejudice to certain
+land.[153-3] Adam Smith is of opinion that the rent of agricultural land
+is ordinarily (!) one-third of the gross product; that of coal mines,
+from one tenth to a maximum of one-fifth; of good lead and tin mines,
+one sixth (with the dues paid the state of twenty-one and two-thirds per
+cent.); of Peruvian silver mines, scarcely one-tenth; of gold mines,
+one-twentieth. And he thinks that rent grows less certain for every
+succeeding article.[153-4]
+
+So far as this is based on facts, it may be explained as follows: The
+greater capacity an article has for transportation from one place to
+another, the less important is advantage of situation, which is
+generally one of the chief elements of rent. The more indispensable the
+commodity is, the more readily is the consumer induced to pay a price
+for it greater than the cost of production; that is, to pay a rent. This
+again is enhanced by the difficulty of the preservation of the
+commodity. Lastly, the more it is a mere product of nature,[153-5] the
+more difficult it is to simultaneously employ several portions of
+capital of different grades of productiveness in its production.
+
+     [Footnote 153-1: To be met with in this form even in _Adam Smith_,
+     Wealth of Nations, I, ch. 11, pr. _John Stuart Mill_, Principles
+     II, ch. 16, § 6, thus states the matter: "Whoever cultivates land,
+     paying a rent for it, gets in return for his rent an instrument of
+     superior power to other instruments of the same kind for which no
+     rent is paid. The superiority of the instrument is in exact
+     proportion to the rent paid for it." According to _v. Jacob_,
+     Grundsätze der Nat. Oek., I, 187, rent constitutes a much larger
+     portion of the price of commodities than is generally supposed, in
+     as much as wages depend so largely on the price of the means of
+     subsistence. Per contra, _Baudrillart_, Manuel, 391 ff., who
+     maintains that rent is practically insignificant.]
+
+     [Footnote 153-2: Similarly _Buchanan_, loc. cit., and _Sismondi_,
+     Richesse commerciale, I, 49. Compare contra, _Malthus_, Inquiry
+     into the Nature and Progress of Rent, 15. I would call attention
+     _en passant_ to the absurdity that there may be an increase in the
+     value in exchange of a nation's entire resources without any
+     increase in its value in use. (_Supra_, § 8.)]
+
+     [Footnote 153-3: Thus _Adam Smith_ remarks that corn fields and
+     rice fields pay very different rents, because it is not always
+     possible to convert one into the other. (Wealth of Nat., I, ch. 11,
+     1.) Compare the tabular statistical view of the rent of land used
+     for vineyards, gardens, meadows, pasturages, wood and farming
+     purposes, in _Rau_, Lehrbuch, I, § 218. For a general theory of the
+     rent of wooded land, see _Hermann_, Staatsw. Unters., 177 ff.; of
+     vineyards, 181 seq.]
+
+     [Footnote 153-4: _Adam Smith_, Wealth of Nat., I, ch. 11, 3.]
+
+     [Footnote 153-5: It is hereby rendered akin to those low stages of
+     civilization in which no rent is paid.]
+
+
+SECTION CLIV.
+
+THEORY OF RENT. (CONTINUED.)
+
+As the purchase of a piece of land[154-1] is no more and no less than
+its exchange against a portion of capital in the shape of money,[154-2]
+its purchase price depends generally on the amount it will rent for as
+compared with the interest on the capital to be given in exchange for
+it. The rate of interest remaining the same, it rises and falls with its
+rent. And _vice versa_, the rent remaining the same it rises and falls
+inversely as the rate of interest.[154-3] A rise in the price of land is
+not always a proof of the growing wealth of a people. It may proceed
+from a depreciation of the value of money, or from a decrease of the
+rate of interest caused by a decline in the number of loans which can be
+advantageously placed.
+
+It is frequently said, that the price paid for land is greater than the
+money-capital which yields an equal revenue.[154-4] This, abstraction
+made of proletarian distress prices for small parcels of land and of the
+political and social privileges of landowners, is accounted for by the
+assumed greater security of the latter,[154-5] which, however, fares ill
+enough in war times, and times of political disturbance. The fact itself
+is found to exist, I think, only in economically progressive times, when
+confidence prevails, and it is based on the pretty certain prospect that
+the rate of interest will decline, while rents will rise.[154-6]
+
+It has been observed in Belgium, that the medium farm rent of land, in
+quarters remarkable for any economic peculiarity whatever, pays an
+interest lower, as compared with the purchase money, in proportion as
+the country about is more thickly populated, and as its husbandry is
+carried on by farmers instead of by owners.[154-7] This phenomenon is
+doubtless correlated with these others, that the conditions just named
+are pretty regularly attendant on a high state of civilization, and that
+advanced civilization is attended uniformly by a decline in the rate of
+interest. (175).[154-8]
+
+     [Footnote 154-1: In every day language, people say of a man
+     who has purchased a piece of land, that he "put" as much
+     capital as is equal to the purchase price "into his land;"
+     or "laid out on it" as much. But this mode of expression is
+     as inaccurate as is this other: "the sun is rising," or "the
+     sun has gone down."]
+
+     [Footnote 154-2: _Macleod_, who is not fond of the natural
+     mode of expression, maintains that the purchase price of a
+     piece of land is equal to the discounted value of the sum of
+     the values of all the future products to be obtained from
+     the land. (Elements, 75.)]
+
+     [Footnote 154-3: C:i::L:r in which C = the capital, i = its
+     interest, L = the piece of land, and r = its rent.]
+
+     [Footnote 154-4: There are traces to be found of the fact
+     among the ancient Greeks, that the farm-rent of landed
+     estates paid a smaller interest on the purchase money than
+     was otherwise usual in the country. _Isaeus de Hagn._, 42;
+     _Salmasius_, De Modo Usur., 848.]
+
+     [Footnote 154-5: Thus even _North_ and _Locke_, loc. cit.;
+     _Cantillon_, Nature du Commerce, 294.]
+
+     [Footnote 154-6: Compare _List_, Werke II, 173. In Belgium,
+     farm-rent per _hectare_ was, in 1830 = 57.25 francs, in 1835
+     = 62.78, in 1840 = 70.44, in 1846 = 74.50, on an average.
+     This was at the rate of from 2.62 to 2.80, or an average of
+     2.67 per cent. on the purchase money. If to this we add the
+     increase in the rise of land between 1830 and 1846, divided
+     by 16, the yearly revenue rises from 2.67 to 3.91 per cent.,
+     that is pretty nearly the rate of interest on hypothecation,
+     and is higher or lower in the different provinces, as the
+     former is higher or lower. (_Heuschling_, Résumé du
+     Récensement général de 1846, 89.) In France, land paid but
+     from 2 to 3 per cent. on the purchase money; but both rents
+     and the price of land have doubled between 1794 and 1844.
+     (Journal des Econ., IX, 208.)]
+
+     [Footnote 154-7: Moreover, whole countries may, because of
+     their great natural advantages, possess, so far as the
+     commerce of the entire world is concerned, something
+     analogous to rent. Thus, for instance, North America,
+     although here, this world-rent finds expression in the
+     national height of the wages of labor and of the rate of
+     interest, (_v. Bernhardi_, Versuch einer Kritik der Gründe
+     welche für grosses und kleines Grundeigenthum angeführt
+     werden, 1848, 294.)]
+
+     [Footnote 154-8: Writers as old as _Culpeper_, A Tract
+     against the high Rate of Usurie, 1623, and _Sir J. Child_,
+     Discourse of Trade, p. 22 of the French translation,
+     observed the connection existing between a low rate of
+     interest, national wealth and a flourishing state of
+     commerce on the one hand, and a high price of the
+     necessaries of life and of land in the other. _Sir W. Petty_
+     would estimate the rent of land as follows: If a calf
+     pasturing in an open meadow gains as much flesh in a given
+     time as is equal to the cost of the food of 50 men for a
+     day, and a workman, on the same land, in the same time,
+     produces food for 60 men, the rent of the land must be 50,
+     and the rate of wages 10. (Political Anatomy of Ireland, 62
+     seq.; compare 54.) Besides, he accounts for the height of
+     rents by the density of the population exclusively, and he
+     would prefer to see both increase _ad infinitum_. (Several
+     Essays on Political Arithmetic, 147 ff.)
+
+     The germs of the _Ricardo_ law of rent, in _Boisguillebert_:
+     the price of corn determines how far the cultivation may be
+     extended; by manuring the land, as much corn as desired may
+     be obtained, provided the cost of production is covered.
+     (Traité des Grains, II, ch. 2 ff.) There is a foreshowing of
+     the same law in the Physiocratic view that only in the
+     production of raw material is there a real excess over and
+     above the cost--_produit net_. Compare _Quesnay_, Probl.,
+     économique, 177 ff. Sur les travaux des artisans. (Daire.)
+     _Auxiron_, Principes de tout Gouvernement, 1776, I, 126.
+     _Adam Smith_ came very near to the true principle in the
+     case of coal mines, but was hindered reaching it in other
+     cases by the false assumption that certain kinds of
+     agricultural production always yield a rent, while others do
+     so only under certain circumstances. Besides he always
+     considered the interest of capital fixed in the soil;
+     buildings, for instance, as part of the rent. (Wealth of
+     Nat., I, ch. 11.) Compare _Hume's_ Letter to Adam Smith;
+     _Burton's_ Life and Correspondence of Hume, II, 486; _von
+     Thünen_, Isolirter Staat., I, 15 ff.
+
+     The most immediate predecessors of _Ricardo_, Principles, 2,
+     3, 24, 31, are _Anderson_ (§ 152); _West_, Essay on the
+     Application of Capital to Land, 1815, and _Malthus_, Inquiry
+     into the Nature and Progress of Rent, 1815. See § 152. It is
+     wonderful how a theory which, in 1777, remained almost
+     untouched, was in 1815 etc., attacked and defended with the
+     greatest zeal, because it then affected the differences
+     between the moneyed and landed interest. Yet _Ricardo_ did
+     not take into account at all the rent-creating influence of
+     the situation of land in relation to the market, as well as
+     to the "farm-office" (_dem Wirthschaftshofe_). The influence
+     of the system of husbandry on rent, first thoroughly treated
+     by _von Thünen_, loc. cit. What has recently been urged
+     against _Ricardo_ by, for instance, _J. B. Say_, Traité, II,
+     ch. 9; _Sismondi_, N. P., III, ch. 12; _Jones_, Essay on the
+     Distribution of Wealth, 1831 (see Edinburg Review, LIV),
+     bears evidence either of a misunderstanding of the great
+     thinker, or else contains only modifications of some
+     individual abstract propositions of his, stated perhaps too
+     strictly. In judging _Ricardo_, it must not be forgotten,
+     that it was not his intention to write a text-book on the
+     science of Political Economy, but only to communicate to
+     those versed in it the result of his researches, in as brief
+     a manner as possible. Hence he writes so frequently making
+     certain assumptions; and his words are to be extended to
+     other cases only after due consideration, or rather
+     re-written to suit the changed case.
+
+     _Baumstark_ very correctly says: "Rent rises, not because
+     new capital has been invested, but when the circumstances of
+     trade make a new addition to capital possible."
+     (Volkswirthschaftliche Erläuterungen über Ricardo's System,
+     1838, 567.) _Fuoco's_ Nuova Teoria della Rendita, Saggi
+     economici, No. 1, is nothing but an Italian version of the
+     doctrines of Malthus and Ricardo. The greater number of
+     anti-Ricardo theories of rent have originated from the rapid
+     and apparently unlimited growth of national husbandry in
+     recent times. Thus it is a fundamental thought in
+     _Rodbertus_, Sociale Briefe, 1851, No. 3, that an increase
+     of the price of corn need not attend an increase of
+     population, either uniformly or necessarily. According to
+     _Carey_, The Past, the Present and the Future, ch. 1, 1848,
+     the most fertile land is last brought under cultivation,
+     because it is covered with swamps, forests, etc.; and
+     because it offers greater resistance to the work of the
+     agriculturist, by reason of its luxurious vegetation. The
+     more elevated lands are first cultivated which present fewer
+     obstacles to cultivation on account of their dryness, their
+     thinner crust, etc. Carey generalizes this and thinks he has
+     reversed the _Ricardo_ law of rent! He overlooks entirely
+     that _Ricardo_ speaks only of the original powers of the
+     soil. Now a swampy land which must be dried at the expense
+     of a great deal of labor, possesses less of these original
+     powers than a sandy soil which may be sown immediately. See
+     _Carey_, Essay on the Rate of Wages, 232 ff., and the
+     lengthy exposition of the same doctrine rank with inexact
+     natural science and unhistorical history in the same
+     author's Principles of Social Science, 1858, vol. I.
+
+     There is this much truth, however, in Carey's error that,
+     with increasing economic progress, the superiority not only
+     of situation, relatively to the market, but also of natural
+     fertility, may of itself go over to other lands. Thus, for
+     instance, the ancient Slaves used clay soil everywhere as
+     pasturage, and cultivated the sandy soil, because their
+     pick-axes could overcome the resistance only of the latter.
+     _Langethal_, Geschicte der deutschen Landw., II, 66;
+     _Waitz_, Schlesw. Holstein, Gesch., I, 17. Similarly in
+     Australia: _Hearne_, Plutology, 1864. Compare, _Roscher_,
+     Nationalökonomik des Ackerbaues, § 34. The word fertility
+     should not be taken too exclusively in its present
+     agricultural sense. In a lower stage of civilization, the
+     facility of military defense or the _ut fons, ut nemus
+     placuit_--_Tacit._, Germ., 16--may have more weight.
+
+     The chief difference in the theories of rent consists in
+     this: whether rent is considered a result of production or
+     only of distribution, and an equalization of gain. Compare
+     _Behrens_, Krit. Dogmengeschichte der Grundrente, 1868, 48.]
+
+
+SECTION CLV.
+
+HISTORY OF RENT.
+
+In poor nations, and in those in a low stage of civilization, especially
+where the population is sparse, rent is wont to be low. In Turkistan,
+land is valued according to the capital invested in its
+irrigation.[155-1] In the interior of Buenos Ayres, at the beginning of
+the nineteenth century, landed estates were paid for in proportion to
+the magnitude of the live stock on them, so that it seemed, at least, as
+if the land was given for nothing, or simply thrown in with the
+purchase. And only a short time since, an English acre in the same
+country, fifteen _leguas_ from the capital, was worth from three to four
+pence, and at a distance of fifty _leguas_, only two pence.[155-2] In
+Russia, also, not long since, the valuation of landed estates was made,
+not in proportion to the superficies, but according to the number of
+souls, that is, of male serfs, a _remnant_ suggestive of the previous
+situation when no rent was paid.[155-3] Where, in relatively uncivilized
+medieval times, instances of the farming out or leasing of land occur,
+farm-rents are so small that their payment can only be considered as a
+mere recognition of the owner's continuing right of property.
+
+Under these circumstances, it is natural that great landowners,
+especially in the lower stages of civilization, should exert an
+especially great influence; and that their low tenants (_Hintersassen_)
+are more dependent in proportion to the want of capital and the absence
+of trade. Hence, these are wont to make up for the smallness of their
+rent by great honors paid to their landlords, and great services,
+especially military service.[155-4] Besides, the lords of the manor, in
+almost every medieval period, have used their influence with the
+government to cut down the wages of labor by serfdom and other similar
+institutions, and the rate of interest on capital by prohibiting
+interest, by usury laws, etc.; and thus, in both ways, to artificially
+increase their own share of the national income.
+
+     [Footnote 155-1: _A. Burnes_, Reise nach Bukhara, II, 238.]
+
+     [Footnote 155-2: _W. Maccann_, Two Thousand Miles Ride
+     through the Argentine Provinces, London, 1853, I, 20; II,
+     143. Ausland, 1843, No. 140. Frisian ancient documents in
+     which parcels of land are described as _terræ 20 animalium,
+     48 animalium_, etc. _Lacomblet_, Urkundenbuch, I, 27.
+     _Kindlinger_, Münster Beitr., I, Urkundenbuch, 24.]
+
+     [Footnote 155-3: The custom began to be more usual in Russia
+     also to say "so many _dessjatines_ and the peasantry
+     belonging thereto." This was especially so in the case of
+     very fertile land, as for instance in Orel. See _v.
+     Haxthausen_, Studien, II, 510. Formerly the bank loaned only
+     250 per soul, afterwards up to 300 R. Bco. (II, 81). Spite
+     of this _v. Haxthausen_ thinks that rent would be illusory,
+     in Russia, in case agriculture was carried on with hired
+     workmen. (I, Vorrede, XIII.) _Carey's_ remark, "every one is
+     familiar with the fact that farms sell for little more than
+     the value of the improvements," may be true of the United
+     States (The Past, Present and Future, 60.)]
+
+     [Footnote 155-4: This condition of things continued in the
+     highlands of Scotland until the suppression of the revolt of
+     1745. The celebrated Cameron of Lochiel took the field with
+     800 tenants, although the rent of the land was scarcely
+     £500. (_Senior_, Three Lectures on the Rate of Wages, 45.)
+     "Poor 12,000 pound sterling per annum nearly subverted the
+     constitution of these kingdoms!" (_Pennant._)]
+
+
+SECTION CLVI.
+
+INFLUENCE OF ADVANCING CIVILIZATION ON RENT.
+
+Advancing civilization contributes in three different ways to raise
+rents.[156-1] The growth of population necessitates either a more
+_intensive_ agriculture (higher farming), or causes it to extend over
+less fertile parcels of land, or parcels less advantageously
+situated.[156-2] If the growth of population be attended by an increase
+of capital, this happens in a still higher degree. The people now
+consume, if not more, at least wheat of finer quality, more and better
+fed live stock; the consequence of which is, that the demands made on
+the land are increased. Lastly, if the population be gradually
+concentrated in large cities, this fact also must contribute to raise
+rents, because it requires a multitude of costly transportations of
+agricultural produce and so increases the cost of production (up to the
+time of consumption) on the less advantageously situated
+land.[156-3] [156-4]
+
+As most of the symptoms of a higher civilization become apparent
+earliest, and in the most striking manner, in large cities, so also a
+rise in rents is first felt in them. The building of houses may be
+considered as the most _intensive_ of all cultivation of land and that
+which is most firmly fixed to the soil.[156-5] Rent has nowhere an
+unsurpassable maximum any more than a necessary minimum.
+
+     [Footnote 156-1: _Jung_, Lehrbuch der Cameralpraxis, 1790,
+     182, has so little idea of this that he is of opinion that
+     farm-rent must grow ever smaller.]
+
+     [Footnote 156-2: According to _Schmoller_, in the
+     Mittheilungen des landwirthschaftlich. Instituts zu Halle,
+     1865, 112 seq., the average farm-rent of the Prussian
+     domains per _morgen_, and the population to the square mile,
+     amounted:
+
+     ===============+============+============+============+============
+       _District._  |  _1849._   |  _1864._   |  _1849._   |  _1858._
+     ---------------+------------+------------+------------+------------
+                    |       _Thalers._        |      _Population_
+                    |                         |   _per square mile_
+     Königsberg,    |    0.73    |    1.16    |    2076    |    2298
+     Gumbinnen,     |    0.59    |    0.76    |    2059    |    2249
+     Danzig,        |    1.02    |    1.51    |    2656    |    2926
+     Marienwerder,  |    0.63    |    1.06    |    1944    |    2135
+     Posen,         |    0.69    |    1.07    |    2789    |    2857
+     Bromberg,      |    0.69    |    1.10    |    2116    |    2322
+     Stettin,       |    1.07    |    1.73    |    2355    |    2614
+     Cöslin,        |    0.83    |    1.30    |    1735    |    1940
+     Stralsund,     |    0.95    |    1.50    |    2347    |    2549
+     Breslau,       |    1.19    |    1.45    |    4733    |    5034
+     Liegnitz,      |    1.17    |    1.75    |    3676    |    3763
+     Oppeln,        |    0.86    |    1.20    |    3973    |    4433
+     Potsdam,       |    1.08    |    1.59    |    3317    |    3640
+     Frankfort,     |    1.29    |    2.00    |    2446    |    2660
+     Magdeburg,     |    2.31    |    2.98    |    3290    |    3508
+     Werseburg,     |    2.35    |    3.03    |    3934    |    4270
+     Erfurt,        |    2.04    |    2.55    |    5621    |    5735
+     Münster,       |    ....    |    2.03    |    3192    |    3299
+     Minden,        |    2.48    |    2.62    |    4841    |    4808
+     ===============+============+============+============+============
+
+     Compare the review of rents in the states of the Zollverein,
+     in _v. Viehbahn_, Statistik, II, 979. It is difficult to
+     compare different countries with one another in this
+     respect, because it is seldom certain whether the word rent
+     means exactly the same thing in them. Besides, it should not
+     be overlooked, how difficult it is to ascertain what rent,
+     in the strict sense of the term, as used by _Ricardo_, is.]
+
+     [Footnote 156-3: Moreover, the rise of rents, in so far as
+     it depends on the greater cost of transportation to a
+     growing market, becomes progressively slower. The concentric
+     circles about that point increase in a greater ratio than
+     the radii.]
+
+     [Footnote 156-4: As to the history of rents in England, a
+     comparison of the years from 1480 to 1484, with the most
+     recent times, shows that the amount of rent estimated in
+     money in agricultural districts, where no very great
+     "improvements" have been made, have increased as 1 to
+     80-100, while the price of wheat has increased 12-fold and
+     wages 10-fold. (_Rogers_, in the Statist. Journal, 1864,
+     77.) According to _Hume_, History of England, ch. 33, it
+     seems that rents under Henry VIII. were only 1/10 of those
+     usually paid in his time, while the price of commodities was
+     only ¼ of the modern. _Davenant_, Works, II, 217, 221,
+     estimates the aggregate rent of land, houses and mines, at
+     the beginning of the seventeenth century, at £6,000,000;
+     about 1698, at £14,000,000; capitalized respectively at
+     £72,000,000 and £252,000,000. About 1714, _J. Bellers_,
+     Proposals for Employing the Poor, puts it at £15,000,000;
+     about 1726, _Erasm. Phillips_, State of the Nation in
+     Respect to Commerce etc., at £20,000,000; about 1771, _A.
+     Young_, at £16,000,000; about 1800, _Beeke_, Observations on
+     the Income-Tax, at £20,000,000; about 1804, _Wakefield_,
+     Essay on Political Economy, at £28,000,000; about 1838,
+     _McCulloch_, Statist., I, 535, at £29,500,000. The poor tax
+     in England and Wales, in 1841, was on a valuation of
+     £32,655,000. (_Porter_, Progress, VI, 2, 614); 1864-5, the
+     annual value of lands, £46,403,853 (Stat. Journal, 1869.)
+     Moreover, the income from houses, railroads, etc. (real
+     property other than lands), increased very much more than
+     that received from pieces of farming land; between 1845 and
+     1864-5, the former by 392.8 per cent., and the latter by
+     27.9 per cent. (_Hildebrand's_ Jahrbb., 1869, II, 383 seq.);
+     and the income tax of 1857 on £47,109,000. There was a still
+     more rapid growth of rent in Scotland. In 1770, it was only
+     £1,000,000-1,200,000: in 1795, £2,000,000; in 1842,
+     £5,586,000. (_McCulloch_, I, 576, ff.) In Ireland, about
+     1776, it was only $900,000, according to _Petty_. (Political
+     Anatomy of Ireland, I, 113.) _A. Young_ assumed it to be
+     £6,000,000 in 1778; _Newenham_, View of Ireland, about 1808,
+     £15,000,000. In many parts of the Rosendale Forest in
+     Lancashire, the land is leased by the ell, at £121, and even
+     at £131 per acre; i. e., more than the whole forest of
+     15,300 acres was rented for in the time of James I. In many
+     of the moorland portions of Lancashire, rent has risen in
+     150 years, 1,500 and even 3,000 per cent. (Edinburg Rev.,
+     1843, Febr., 223.)
+
+     The amount of rents in Prussia, _Krug_ assumed to be in
+     1804, 50,000,000 thalers, and _von Viebahn_, Zollverein
+     Statistik, II, 974, in 1862, 116,500,000 thalers. _Lavergne_
+     assumed the rents of France after 1850 to be 1,600,000,000
+     francs (Revue des deux Mondes, Mars, 1868); and _Dutot_,
+     Journal des Economistes, Juin, 1870, in 1870, at
+     2,000,000,000. In Norway, the capitalized value of all the
+     land was assessed at 13,000,000,000 thalers in specie, in
+     1665; in 1802, at 25,500,000; in 1839, at 64,000,000
+     thalers. _Blom_, Statistik von Norwegen, I, 145. The older
+     such estimates are, the more unreliable they are.]
+
+     [Footnote 156-5: In Paris, in 1834, the square _toise_ = 37
+     sq. feet, in the Rue Richelieu and Rue St. Honoré, cost
+     1,500 to 2,000 francs; in Rue neuve Vivienne, 2,500 to 3,500
+     francs; in 1857, from 200 to 500 francs per square meter, =
+     10 sq. feet, was very usual. (_Wolowski_.) Before the gates
+     of Paris, the rent amounted to as high as 250 francs per
+     _hectare_; at Fontainebleau, to only from 30 to 40. (Journal
+     des Economistes, Mars, 1856, 337.) In Market Square,
+     Philadelphia, land was worth from 3,000 to 4,000 francs per
+     sq. _toise_, and in Wall Street, New York, about 4,000
+     francs. (_M. Chevalier_, Letters sur l'Amérique, 1836, I,
+     355.) In St. Petersburg, after 6 years, the house frequently
+     falls to the owner of the area. (_Storch._ by _Rau_, I, 248
+     f.) In Manchester, the Custom House area cost from 10 to 12
+     pounds sterling per square yard; in the center of the city,
+     as high of £40, that is, nearly £200,000 per acre. In
+     Liverpool, in the neighborhood of the Exchange and of Town
+     Hall, the cost is from 30 to 40 pounds sterling. (Athenæum,
+     Dec. 4, 1852.) In London, a corner building on London
+     street, erected for £70,000, with only three front windows,
+     pays a rental of £22,000. (Allg. Zeitung, 1 Febr., 1866.)
+     The villa at Misenum--a very beautiful location--which the
+     mother of the Gracchi bought for about 5,000 thalers, came
+     into the possession of L. Lucullus, consul in the year B. C.
+     74, for about 33 times as much. _Mommsen_, Römisch. Gesch.,
+     II, 382.]
+
+
+SECTION CLVII.
+
+HISTORY OF RENT.--IMPROVEMENTS IN THE ART OF AGRICULTURE.
+
+Improvements in the art of agriculture which are confined to individual
+husbandmen leave rent unaffected. They do not perceptibly lower the
+price of agricultural products, and only effect an increase of the
+reward of enterprise which is entirely personal to the more skillful
+producers and does not attach to the ground itself.
+
+But how is it when these improvements become general throughout the
+country? If population and consumption remain unchanged, the supply of
+agricultural products will exceed the demand. This would compel farmers,
+if there be no avenue open to exports, to curtail their production. The
+least fertile and most disadvantageously situated parcels of land will
+be abandoned to a greater or less extent, and the least productive
+capital devoted to agriculture, withdrawn. In this way, rent goes down
+both relatively and absolutely, although the owners of land may be able
+to partially cover their loss by the gain which results to them as
+consumers and capitalists.[157-1] (§ 186). After a time, however, and as
+a consequence of the diminished price of corn, population and
+consumption will increase, and entail an extension of agriculture and a
+consequent rise in rents.[157-2] If it, relatively speaking, reaches the
+same point as before, it still is absolutely much greater than before.
+Let us suppose that there are three classes of land of equal extent in a
+country, which for an equal outlay of capital produce 100,000, 80,000
+and 70,000 bushels yearly. The rent of the land here would be equal to
+at least 40,000 bushels. If the yield of production now doubles, while
+the demand for agricultural products also doubles, the aggregate harvest
+will be 200,000 + 160,000 + 140,000 bushels, and consequently rent will
+have risen to at least 80,000 bushels. But this increase of rent has
+injured no one. If the population increases in a less degree than the
+productiveness of the land, the consumer may, to a certain extent, gain
+largely, and the landowner better his condition. However, great
+agricultural improvements spread so gradually over a country, that, as a
+rule, the demand for agricultural products can keep pace with the
+increased supply. But even in this case, that transitory absolute
+decline of rent may be avoided; and it cannot be claimed universally, as
+it is by many who are satisfied with mumbling Ricardo's words after him,
+that an increase of rent is possible only by an enhancement of the price
+of the products of the soil. Where the development of a people's economy
+is a normal one, the rent of land is wont to increase gradually, but at
+the same time to constitute a diminishing quota of the entire national
+income.[157-3]
+
+Improvements in milling,[157-4] and in the instruments of
+transportation[157-5] adapted to agricultural products, and the
+introduction of cheaper[157-6] food, have the same effect as
+improvements of agricultural production. All such steps in advance
+render an increase in population, or in the nation's resources, possible
+without any corresponding increase in the amount paid to landowners as
+tribute money.[157-7]
+
+The foregoing facts furnish us the data necessary to decide what
+influence permanent soil improvements have on the rent of land.[157-8]
+The improved parcels of land now grow more fertile. Their rentability
+also increases, while that of the others becomes not only relatively but
+absolutely less, if the demand remains unaltered. The whole is as if
+capital had been transformed into fertile land, and this added to the
+improved land.
+
+     [Footnote 157-1: Since it has seemed absurd to many writers
+     to say that an improvement in the art of agriculture may
+     cause rents to decline (compare _Malthus_, Principles, I,
+     ch. 3, 8), _John Stuart Mill_, Principles, IV, ch. 3, § 4,
+     prefers to put the question thus: whether the landowner is
+     not injured by the improvement of the estates of other
+     people, although his own is included in the improvement.
+     Compare _Davenant_, Works, I, 361. And so the long
+     agricultural crisis through which Germany passed at the
+     beginning of the third decade of this century was produced
+     mainly by the great impulse given to agriculture (_Thaer_,
+     _Schuerz_ etc.), while population did not keep pace with it.
+     Similarly, at the same time, in England, _McCulloch_, Stat.,
+     I, 557 ff. Of course, the less fertile pieces of land
+     declined even relatively most in price. From 1654 to 1663,
+     Switzerland experienced a severe agricultural crisis,
+     attended with oppressive cheapness of corn, a great decline
+     in the price of land, innumerable cases of insolvency,
+     revolts of the peasantry, emigration, etc. (_Meyer von
+     Knonau_, Handbuch d. schweiz. Gesch., II, 43.) The Swiss
+     had, precisely during the Thirty Years' War which spared
+     them, so extensively developed their agricultural interests,
+     that now that other countries began to compete with them,
+     they could not find a market large enough for their
+     products. For English instances of similar "agricultural
+     distress" in the seventeenth and eighteenth centuries, see
+     _Child_, Discourse on Trade, 73, 124 seq.; _Temple_,
+     Observations upon the U. P., ch. 6; _Tooke_, History of
+     Prices, I, 23 seq., 42. Even where there have been no
+     technic improvements, a series of unusually good harvests
+     may have the same results, of which there are many instances
+     scattered through _Tooke's_ first volume.
+
+     There is great importance attached in England to the
+     difference between those agricultural reforms which save
+     land and those which effect a saving in capital and labor.
+     The latter, it is said, decrease the money rent of the
+     landowner by depreciating the price of corn, but leave the
+     corn-rent unaltered. The former, on the other hand, decrease
+     the rent both in money and corn, but the money rent in a
+     higher degree. (_Ricardo_, Principles, ch. 2; _J. S. Mill_,
+     Principles, IV, ch. 3, 4.)]
+
+     [Footnote 157-2: When the demand for products of the soil
+     which minister to luxury, such as fat meat, milk,
+     vegetables, is increasing, a greater cheapness of the
+     necessary wheat may raise rent, for the reason that lands
+     are now cultivated which were not formerly tillable. Thus,
+     there is now land in Lancashire which could not formerly be
+     planted with corn, because the laborers would have consumed
+     more than the harvest yielded. Since the large imports of
+     the means of subsistence from Ireland these lands have been
+     transformed into artificial meadows, gardens, etc.
+     (_Torrens_, The Budget, 180 ff.) Compare _Adam Smith_, I,
+     257, ed. Bas. _Banfield_ would misuse these facts to
+     overturn the theory of Ricardo. (Organization of Industry,
+     1848, 49 ff.)]
+
+     [Footnote 157-3: The French testamentary tax was on an
+     amount,
+
+       In 1835, of   552 mill. francs moveable property
+               and   984  "    immoveable.
+       In 1853, of   820  "    francs moveable property
+               and 1,176  "    immoveable.
+       In 1860, of 1,179  "    francs moveable property
+               and 1,545  "    immoveable.
+
+     so that the preponderance of immoveable property constituted
+     a converging series of 78, 43, and 31 per cent. (_Parieu._)
+     In North America, with its great unoccupied territory, the
+     reverse is the case. The census of 1850 gave a moveable
+     property of 36 per cent.; that of 1860 of only 30 per cent.
+     According to _Dubost_, the rent of land in Algeria was 80
+     per cent., a gross product of only 10-15 francs per
+     _hectare_; in Corsica, 66 per cent., a gross yield of from
+     30-35 per cent.; in the Department du Nord, 17.5-24 per
+     cent., a gross yield of from 500-740 francs. (Journal des
+     Economistes, Juin, 1870, 336 ff.)]
+
+     [Footnote 157-4: The repeated sifting of the bran (_mouture
+     économique_) had great influence in this respect. In France,
+     in the sixteenth century, a _setier_ of wheat gave only 144
+     pounds of bread. In 1767, according to _Malouin_, L'Art du
+     Bonlanger, it gave 192 pounds. It now gives from 223 to 240
+     pounds. The gain in barley is still greater; the _setier_
+     gives 115 pounds of flour, formerly only 58. (_Roquefort_,
+     Histoire de la Vie Privée des Français, I, 72 ff.
+     _Beckmann_, Beitr. zur Gesch. der Erfind., II, 54.)]
+
+     [Footnote 157-5: In the beginning of the eighteenth century,
+     the counties in the neighborhood of London addressed a
+     petition to Parliament against the extension of the building
+     of turnpike roads which caused their rents to decline, from
+     the competition of distant districts. (_Adam Smith_, Wealth
+     of Nat., I, ch. 11, 1.) Compare _Sir J. Stewart_,
+     Principles, I, ch. 10. Improvements in transportation which
+     affect the longest and shortest roads to a market in an
+     absolutely equal degree, as, for instance, the bridging of a
+     river very near the market, leave rent unaffected. (_von
+     Mangoldt_, V. W. L., 480.)]
+
+     [Footnote 157-6: _Malthus_, Principles, 231 ff. If the
+     laboring class were to become satisfied with living on
+     potatoes instead of meat and bread as hitherto, rents would
+     immediately and greatly fall, since the necessities of the
+     people might then be obtained from a much smaller
+     superficies. But after a time, the consequent increase in
+     population might lead to a much higher rent than before;
+     since a great deal of land too unfertile for the cultivation
+     of corn might be sown with potatoes, and thus the limits of
+     cultivation be reached much later.]
+
+     [Footnote 157-7: In France, between 1797 and 1847, the
+     average price of wheat did not rise at all. _Hipp. Passy_
+     mentions pieces of land which produced scarcely 12
+     hectolitres of wheat, but which now produce 20--an increased
+     yield of 170 francs, attended by an increase in the cost of
+     only 75 francs. (Journal des Economistes, 15 Oct., 1848.)
+     Moreover, it may be that a not unimportant part of modern
+     rises in the price of corn may be accounted for by the
+     better quality of the corn caused by higher farming. (_Inama
+     Sternbeg_, Gesch. der Preise, 10 seq.) Such facts, readily
+     explainable by _Ricardo's_ theory, remove the objection of
+     _Carey_, _Banfield_ and others, that the condition of the
+     classes who own no land has, since the middle ages,
+     unquestionably improved. Political Economy would be simply a
+     theory of human degradation and impoverishment, if the law
+     of rent was not counteracted by opposing causes. (_Rœsler_,
+     Grundsätze, 210.) According to _Berens_, Krit.
+     Dogmengeschichte, 213, the actual highness of rent is to be
+     accounted for by the antagonism between the "soil-law
+     (_Bodengesetz_) of the limited power of vegetation," and the
+     "progress of civilization" (but surely only to the extent
+     that the latter improves the art of agriculture). Thus, too,
+     _John Stuart Mill_, Principles, I, ch. 12; II, ch. 11, 15
+     seq.; III, ch. 4 seq.; IV, ch. 2 ff.]
+
+     [Footnote 157-8: Thus, for instance, drainage works which,
+     where properly directed, have paid an interest of from 25 to
+     70 per cent. per annum in England and Belgium on the capital
+     invested.]
+
+
+SECTION CLVIII.
+
+HISTORY OF RENT.--IN PERIODS OF DECLINE.
+
+If a nation's economy be declining, in consequence of war for instance,
+the disastrous influence hereof on rent may be retarded by a still
+greater fall in wages or in the profit on capital. But it can be hardly
+retarded beyond a certain point.[158-1] As a rule, the decline of rents
+begins to be felt by the least fertile and least advantageously situated
+land.[158-2] [158-3]
+
+     [Footnote 158-1: "The falling of rents an infallible sign of
+     the decay of wealth." (_Locke._) In England, in 1450, land
+     was bought at "14 years' purchase;" i. e., with a capital =
+     14 times the yearly rent paid, in 1470, at only "10 years'
+     purchase." (_Eden_, State of the Poor, III, App., I, XXXV.)
+     This was, doubtless, a consequence of the civil war raging
+     in the meantime. The American war (1775-82) depressed the
+     price of land in England to "23¼ years' purchase,"
+     whereas it had previously stood at 32. (_A. Young._) The
+     rent of land, in many places in France, declined from 10,000
+     to 2,000 livres, on account of the many wars during Louis
+     XIV.'s reign. (_Madame de Sévigné's_ Lettres, 25 Dec, 1689.)
+     Even in 1677, it was only one-half of its former amount
+     (_King_, Life of Locke, I, 129.) The whole Bekes county
+     (_comitat_) in Hungary was sold for 150,000 florins under
+     Charles VI.; after the unfortunate war with France.
+     (_Mailath_, Oesterreich, Gesch., IV, 523.) Compare
+     _Cantillon_, Nature du Commerce, 248. In Cologne, a new
+     house was sold in the spring of 1848 for 1,000 thalers, the
+     site of which alone had cost 3,000 thalers; and there are
+     six building lots which formerly cost over 3,000 thalers,
+     now valued at only 100 thalers. (_von Reden_, Statist.
+     Zeitschr., 1848, 366.) On the other hand, Napoleon's war
+     very much enhanced English rents (_Porter_, Progress of the
+     Nation, II, 1, 150 ff.), because it affected England's
+     national husbandry principally by hindering the importation
+     of the means of subsistence. (_Passy_, Journal des
+     Economistes, X, 354.)]
+
+     [Footnote 158-2: Thus the price of lands, in Mecklenburg,
+     between 1817 and 1827, fell 30 to 40 per cent. in the least
+     fertile quarters; in the better, from 15 to 20 per cent.
+     (_von Thünen_, in _Jacob_, Tracts relating to the Corn
+     Trade, 40, 187.) _Per contra_, see Hundeshagen Landwirthsch.
+     Gewerbelehre, 1839, 64 seq., and _Carey_, Principles, I,
+     354.]
+
+     [Footnote 158-3: The average rent in England was, in 1815,
+     17s. 3d. In the counties, it was highest in Middlesex, 38s.
+     9d.; in Rutland, 38s. 2d.; Leicester, 27s. 3d.; lowest in
+     Westmoreland, 9s. 1d. In Wales, the average was 7s. 10d.;
+     highest in Anglesea, 19s.; lowest in Merioneth, 4s. 8d. In
+     Scotland the average was 5s. 1½d.; highest, Midlothian,
+     24s. 6½d.; lowest, Highland Caithness, Cromarthy,
+     Inverness and Rosse, from 1s. 1d. to 1s. 5d.; Orkneys,
+     8½d.; Sutherland, 6d.; Shetlands, 3d. In Ireland, the
+     average was 12s. 9d.; highest in Dublin, 20s. 1½d.;
+     lowest, Donegal, 6s. (_McCulloch_, Stat., I, 544 ff.;
+     Yearbook of general Information, 1843, 193.) In France,
+     _Chaptal_, De l'Industrie Fr., 1819, I, 209 ff., estimates
+     the average yield per _hectare_ at 28 francs; in the
+     Department of the Seine, 216; Nord, 69.56; Lower Seine,
+     67.85; in the upper Alps, 6.2; in the lower Alps, 5.99: in
+     the Landes, 6.25. While in the Landes, only 20 francs a
+     _hectare_ are frequently paid, the purchase price in the
+     neighboring Medoc is sometimes 25,000 francs. (Journal des
+     Economistes, Jan. 15, 1851.) In Belgium, the average price
+     of agricultural land is 52.46; in East Flanders, 53.19; in
+     Namur, 29.24. (_Heuschling_, Statistique, 77.)]
+
+
+SECTION CLIX.
+
+HISTORY OF RENT.--RENT AND THE GENERAL GOOD.
+
+We so frequently hear rent called the result of the monopoly[159-1] of
+land, and an undeserved tribute paid by the whole people to landowners,
+that it is high time we should call attention to the common advantage it
+is to all. There is evidently danger that, with the rapid growth of
+population, the mass of mankind should yield to the temptation of
+gradually confining themselves to the satisfaction of coarse, palpable
+wants; that all refined leisure, which makes life and the troubles that
+attend it worth enduring, and which is the indispensable foundation of
+all permanent progress and all higher activity, should be gradually
+surrendered. (See § 145.) Here rent constitutes a species of reserve
+fund, which grows greater in proportion as these dangers impend by
+reason of the decline of wages and of the profit of capital, or
+interest.[159-2] Besides, precisely in times when rent is high, the sale
+and divisibility of landed estates act as a beneficent reaction against
+the monopoly of land, which is always akin to the condition of things
+created by rent.
+
+But it is of immeasurably greater importance that high rents deter the
+people from abusing the soil in an anti-economic way; that they compel
+men to settle about the centers of commerce, to improve the means of
+transportation, and under certain circumstances to engage in the work of
+colonization; while, otherwise, idleness would soon reconcile itself to
+the heaping together of large swarms of men.[159-3] The anticipation of
+rent may render possible the construction of railroads, which enable the
+land to yield that very anticipated rent.
+
+     [Footnote 159-1: "Rent is a tax levied by the landowners as
+     monopolists." (_Hopkins_, Great Britain for the last forty
+     Years, 1834.) For a very remarkable armed and successful
+     resistance of farmers in the state of New York to the claims
+     for rent of the Rensselaer family, represented by the
+     government, see _Wappäus_ Nord Amerika, 734.]
+
+     [Footnote 159-2: _Malthus_, Additions to the Essay on
+     Population, 1817, III, ch. 10; compare also _Verri_,
+     Meditazioni, XXIV, 3. The Physiocrates call the landowners
+     _classe disponible_, since, as they may live without labor,
+     they are best adapted to military service, the civil
+     service, etc., either in person or by defraying the expenses
+     of those engaged in them. (_Turgot_, Sur la Formation etc.,
+     § 15; Questions sur la Chine, 5.)]
+
+     [Footnote 159-3: Well discussed by _Schäffle_, Theorie, 65,
+     72, 83. _Malthus_ considers the capital and labor expended
+     in agriculture more productive than any other, because they
+     produce not only the usual interest and wages, but also
+     rent. If, therefore, the manufacturing and commercial profit
+     of a country = 12 per cent., and the profit of capital
+     employed in agriculture = 10 per cent., a corn law which
+     compelled the capital engaged in manufactures and commerce
+     to be devoted to agriculture would be productive of
+     advantage to the national husbandry in general, if the
+     increase in rent should amount to about 3 per cent. (On the
+     Effects of the Corn Laws and of a Rise or Fall in the Price
+     of Corn on the Agriculture and the general Wealth of the
+     Country, 1815. The Grounds of an Opinion on the Policy of
+     Restricting the Importation of Foreign Corn, 1815.) Compare
+     _supra_, § 55, and the detailed rectification in _Roscher_,
+     Nationalökonomik des Ackerbaues, etc., § 159 ff.]
+
+
+
+
+CHAPTER III.
+
+WAGES.
+
+
+SECTION CLX.
+
+THE PRICE OF COMMON LABOR.
+
+Like the price of every commodity, the immediate wages of common labor
+is determined by the relation of the demand and supply of labor. Other
+circumstances being the same, every great plague[160-1] or
+emigration[160-2] is wont, by decreasing the supply, to increase the
+wage's of labor; and a plague, the wages of the lowest kind of labor
+most.[160-3] And so, the increased demand, in harvest time, is wont to
+increase wages; and even day board during harvest time is wont to be
+better.[160-4] [160-5] In winter the diminished demand lowers wages
+again.[160-6] Among the most effective tricks of socialistic sophistry
+is, unfortunately, to caricature the correct principle: "labor is a
+commodity," into this other: "the laborer is a commodity."
+
+Moreover, common labor has this peculiarity, that those who have it to
+supply are generally much more numerous than those who want it; while
+the reverse is the case with most other commodities. Another important
+peculiarity of the "commodity" labor, is, that it can seldom be bought,
+without at the same time reducing the person of the seller to a species
+of dependence. Thus, for instance, the seller cannot be in a place
+different from that in which his commodity is. Hence a change in the
+person, etc. of the buyer very readily necessitates in the workman a
+radical change of life, and that the levelling adjustment of local
+excess and want is rendered so difficult in the case of this
+commodity.[160-7] Hence, it is that, if in the long run the exchange of
+labor against wages is to be an equitable one (§ 110), the master of
+labor must, so to speak, incorporate part of his own personality into
+it, have a heart for faithful workmen and thus attach them to
+himself.[160-8]
+
+     [Footnote 160-1: High rate of Italian wages after the plague
+     in 1348, but also many complaints of the indolence and
+     dissoluteness of workmen. (_M. Villani_, I, 2 ff., 57 seq.
+     _Sismondi_, Gesch. der ital. Republiken in Mittelalter, VI,
+     39.) In England, the same plague increased the wages of
+     threshers from an average of 1.7 d. in 1348, to 3.3 d. in
+     1349. Mowers received, during the 90 years previous, 1/12 of
+     a quarter of wheat per acre; in 1371-1390, from 1/7 to 1/6.
+     The price of most of their wants was then from 1/8 to 1/12
+     as high as in _A. Young's_ time, and wages ¼ as high.
+     (_Rogers_, I, 306, 271, 691.) The great earthquake in
+     Calabria, in 1783, produced similar effects. (_Galanti_, N.
+     Beschreiburg von Neapel, I, 450.) Compare _Jesaias_, 13, 12.
+     On the other hand, depopulation caused by unfortunate wars
+     is not very favorable to the rate of wages; instance,
+     Prussia in 1453 ff., after the Polish struggle, and Germany,
+     after the Thirty Years' War.]
+
+     [Footnote 160-2: How much it contributes to raise wages that
+     workmen can, in a credible way, threaten to move to other
+     places, is illustrated by the early high wages and personal
+     freedom of sailors. Compare _Eden_, State of the Poor, I,
+     36. In consequence of the recent great emigration from
+     Ireland, the weekly wages of farm hands in that country was
+     57.4 per cent. higher than in 1843-4. In Connaught, where
+     the emigration was largest, it was 87 per cent. higher.
+     (London Statist. Journ., 1862, 454.)]
+
+     [Footnote 160-3: Compare _Rogers_, I, 276, and _passim_.]
+
+     [Footnote 160-4: And this in proportion as the uncertainty
+     of the weather causes haste. In England, the harvest doubles
+     wages. (_Eden._) In East Friesland, it raises it from 8-10
+     ggr. to 2 thalers sometimes (_Steltzner_); in the steppes of
+     southern Russia, from 12-15, to frequently 40-50 _kopeks_.
+     This explains why the country people who come into the
+     weekly market are anxious, during harvest time, to get rid
+     of their stocks as fast as possible. According to the
+     Statist. Journal, 1862, 434, 448, the average wages in
+     harvest and other times, amounted to:
+
+                           _In harvest time._  _Other times._
+     In Scotland for males,      18s. 7d.       12s. 11½d.
+       "          "  females,    11s. 4d.        5s.  7d.
+     In Ireland   "  males,      12s. 9d.        6s. 11½d.
+       "          "  females,     8s. 3d.        3s.  9d.
+       "          "  males,      15s. 4d.        7s.  1¼d.
+       "          "  females,     7s.  1¾d.      3s. 11d.
+
+     The reason why the wages of females rises more in harvest
+     time than the wages of males may be the same that in many
+     places in Ireland has made emigration more largely increase
+     the wages of women. (l. c., 454.) Every excess of workmen
+     depresses, and every scarcity of workmen enhances the wages
+     of the lowest strata relatively most.]
+
+     [Footnote 160-5: The wages of English sailors was usually
+     40-50 shillings a month. During the last naval war, it rose
+     to from 100 to 120, on account of the great demand created
+     by the English fleet. (_McCulloch_, On Taxation, 40.)]
+
+     [Footnote 160-6: The winter wages of German agricultural
+     laborers varies between 6.1 and 20 silver groschens; summer
+     wages between 7.9 and 27.5 silver groschens. _Emminghaus_,
+     Allg. Gewerbelehre, 81, therefore, advises that in winter
+     the meal time of workmen in the fields should be postponed
+     to the end of the day, and winter wages then made less low
+     than at present.]
+
+     [Footnote 160-7: _W. Thornton_, On Labour, its wrongful
+     Claims and rightful Dues, its actual, Present and possible
+     Future, 1869, II, ch. 1. _Harrison_, Fortnightly Review,
+     III, 50.]
+
+     [Footnote 160-8: Just as the husband binds himself in
+     marriage. While in concubinage there is apparent equality,
+     it costs the woman a much greater sacrifice than the man.]
+
+
+SECTION CLXI.
+
+WAGES OF LABOR.--THE MINIMUM OF WAGES.
+
+Human labor cannot, any more than any other commodity, be supplied, in
+the long run, at a price below the cost of production.[161-1] [161-2] The
+cost of production here embraces not only the necessary or customary
+means of subsistence of the workman himself, but also of his family;
+that is, of the coming generation of workmen. The number of the latter
+depends essentially on the demand for labor. If this demand be such that
+it may be satisfied by an average of six children to a family, the rate
+of wages must be such as to support the workman himself and to cover the
+cost of bringing up six children.[161-3] Where it is customary for the
+wife and child, as well as for the father, to work for wages, the father
+does not need to earn the entire support of the family, and hence
+individual wages may be smaller.[161-4] But if it were to fall below the
+cost mentioned above, it would not be long before increased mortality
+and emigration, and a diminution of marriages and births would produce a
+diminution of the supply; the result of which would be, if the demand
+remained the same, a renewed rise of wages.
+
+Conversely, it would be more difficult for the rate of wages to be
+maintained long much above that same cost, in proportion as the
+gratification of the sexual appetite was more generally considered the
+highest pleasure of sense, and the love of parents for their children as
+the most natural human duty. As Adam Smith says, where there is a great
+demand for men, there will always be a large supply of them.[161-5]
+
+     [Footnote 161-1: Compare _Engel's_ beautiful lecture on the
+     cost of labor to itself (_Selbstkosten_ = _self-cost_),
+     Berlin, 1866.]
+
+     [Footnote 161-2: _Wolkoff_ zealously and rightly argues,
+     that the minimum wages is not the _taux naturel_ of wages.
+     (Lectures, 118 ff., 284.) _von Thünen_ also divides wages
+     into two component parts--that which the workman must lay
+     out in his support in order to continue able to work, and
+     that which he receives for his actual exertion. (Isolirter
+     Staat., II, 1, 92 seq.)]
+
+     [Footnote 161-3: _Gasparin_ distinguishes five periods in
+     the career of a workman generally: a, he is supported by his
+     parents; b, he supports himself and is in a condition to
+     save something; c, he marries, and supports his children
+     with trouble; d, the children are able to work, and the
+     father lives more comfortably; e, his strength and resources
+     decline. (_Villermé_, Tableau de l'État physique et moral
+     des Ouvriers, 1840, II, 387.)]
+
+     [Footnote 161-4: _Cantillon_, Nature du Commerce, etc.,
+     1755, is of opinion that a day laborer, to bring up two
+     children until they are grown, needs about as much as he
+     does for his own support; and that his wife may, as a rule,
+     support herself by her own work. (42 ff.) In Germany, it is
+     estimated that, in the case of day laborers, a woman can
+     earn only from 1/3 to ½ of what her husband does; mainly
+     because she is so frequently incapacitated for work by
+     pregnancy, nursing, etc. (_Rau_, Lehrbuch, I, § 190.) In
+     France, in 1832, a man working in the fields earned, on an
+     average, 1¼ francs a day, the wife ¾ of a franc (200
+     days to the year), the three children 38/100 francs (250
+     days to the year), an aggregate of 650 francs per annum.
+     (_Morogues._) In England, the average amount earned in the
+     country was for males, per annum, £27 17s.; (munications
+     relative to the Support and Maintenance of the Poor, 1834,
+     p. LXXXVIII.) The wife of an English field hand, without
+     children, earns 1/3 more than one with children. In the case
+     of mothers, a difference of fewer or more children is
+     unnoticeable in the effects on wages. (London Statist.
+     Journal, 1838, 182.) In the spinning factories in
+     Manchester, in 1834, children between 9 and 10 years of age
+     were paid, weekly, from 2s. 9d. to 2s. 10d.; between 10 and
+     12, from 3s. 6d. to 3s. 7d.; between 12 and 14, from 5s. 8d.
+     to 5s. 9d.; between 14 and 16, from 7s. 5d. to 7s. 6d.
+     (Report of the Poor Commissioners, 204.) Those manufactures
+     which require great physical strength, like carpet and
+     sail-cloth weaving, and those carried on in the open air and
+     in all kinds of weather, allow of no such family competition
+     and debasement of wages. (_Senior_ in the Report of the
+     parliamentary Committee on Hand Weavers, 1841.)]
+
+     [Footnote 161-5: Similarly, _J. Möser_, Patriot. Phant., I,
+     40. _Adam Smith_ infers from the following symptoms in a
+     country that wages are higher there than the indispensable
+     minimum, viz.: if wages in summer are higher than in winter,
+     since it is seldom that enough is saved in summer to satisfy
+     the more numerous wants of winter; if wages vary less from
+     year to year and more from place to place than the means of
+     subsistence, it they are high even where the means of
+     subsistence are cheapest. (Wealth of Nat., I, ch. 8.)]
+
+
+SECTION CLXII.
+
+COST OF PRODUCTION OF LABOR.
+
+The idea conveyed by the expression necessaries of life is, within
+certain limits, a relative one. In warm countries, a workman's family
+needs less clothing, shelter, fuel and even food[162-1] than in cold
+countries. This difference becomes still more striking when the warm
+countries possess absolutely cheaper food as, for instance, rice,
+Turkish wheat, bananas etc. Here, evidently, other circumstances being
+the same, the rate of wages may be lower.[162-2] The cultivation of the
+potato has operated in the same direction; since an acre of land planted
+with potatoes yields, on an average, twice as much food as the same acre
+planted with rye.[162-3] In France, two-thirds of the population lived
+almost without animal food, on chestnuts, Indian corn, and potatoes
+(_Dupin_), while in England, malt, hops, sugar, brandy, tea, coffee,
+tobacco, soap, newspapers, etc. are described as "articles chiefly used
+by the laboring classes." (_Carey_.)
+
+The standard of decency of the working class also has great influence
+here. The use of blouses in Paris has nothing repulsive, nor that of
+wooden shoes in many of the provinces of France, nor the absence of
+shoes in lower Italy; while the English workman considers leather shoes
+indispensable, as he did only a short time ago a cloth coat. Compare
+_infra_, § 214.[162-4]
+
+     [Footnote 162-1: Explained since _Liebig's_ time by the fact
+     that a part of food is consumed to preserve animal heat:
+     means of respiration in contradistinction to means of
+     nutrition. Recent research has shown that in cold weather
+     more urea and also more carbonic acid are given off; hence
+     the means of supplying this deficit should be greater in
+     cold weather than in warm. This more rapid transformation is
+     wont, when nutrition is sufficient, to be accompanied by
+     more energetic activity. (_Moleschott_, Physiologie der
+     Nahrungsmittel, 1850, 47, 50, 83.)]
+
+     [Footnote 162-2: This is opposed in part by the fact that a
+     hot climate induces indolence, and that therefore he needs a
+     greater incentive to overcome his disposition to idleness.
+     Thus, in the cooler parts of Mexico, the rate of wages was
+     26 sous a day, in the warmer, 32 sous. (_Humboldt_, N.
+     Espagne, III, 103.)]
+
+     [Footnote 162-3: According to _Engel_, Jahrbuch für Sachsen,
+     I, 419, on acres similarly situated and under similar
+     conditions, the lowest yielded:
+
+                _Watery contents  _Watery contents
+                   included._        excluded._
+
+     Of wheat,      1,881 lbs.       1,680 lbs.
+      " rye,        1,549  "         1,404  "
+      " pease,      1,217  "         1,095  "
+      " potatoes,  21,029  "         5,257  "
+
+     The dry substance of these products yielded:
+
+              _Azotized                  _Mineral
+             Substance._    _Fecula._     Matter._
+
+     Wheat,      282 lbs.    879 lbs.     49 lbs.
+     Rye,        243  "      661  "       34 lbs.
+     Pease,      309  "      431  "       33 lbs.
+     Potatoes,   525  "    3,785  "      178 lbs.
+
+     In Saxony, from 1838 to 1852, the average prices stood as follows:
+
+                               _Of Rye._  _Of Wheat._  _Of Potatoes._
+
+     One lb. of dry substance,      1        1.28            .95
+     One lb. of protein substance,  1        1.11           1.78
+     One lb. of fecula,             1        1.14           0.72
+
+     (loc. cit.) The high price of protein in wheat depends
+     probably on the more agreeable appearance and pleasanter
+     taste of wheat flour; the still higher price of potato
+     protein on the exceedingly easy mode of its preparation.]
+
+     [Footnote 162-4: As regards food alone, the cost of the
+     support of a plowman on Count Podewil's estate, reduced by
+     _Rau_, Lehrbuch, § 191, to the unit of rye, is annually
+     1,655 lbs. of rye. According to _Koppe_, it is 1,952 lbs.;
+     to _Block_, 2,300 lbs.; to _Kleemann_, from 1,888 to 2,552
+     lbs.; to _Möllenger_, 2,171 lbs. The first three estimate
+     the cost in meat at 78, 160 and 60 pounds. Compare _Block_,
+     Beitr. Z. Landgüterschätzungskunde, 1840, 6. Exhaustive
+     estimates for all Prussian governmental districts in _von
+     Reden_, Preussische Erwerbs, und Verkehrsstatistik, 1853, I,
+     177 ff., according to which the requirement, per family,
+     varies between 71 thalers in Gumbinnen and 204 thalers in
+     Coblenz, the average being 105 thalers. According to more
+     recent accounts, a laborer's family in East Prussia, gangmen
+     not included, get along very well on 177 thalers per annum.
+     (_von der Goltz_, Ländl. Arbeiterfrage, 1872, 9 ff.) In
+     Mecklenburg, omitting _Hofgänger_, on 183 thalers. (Ann.
+     des. patr. Vereins, 1865, No. 26.)
+
+     The necessary outlay of the family of an agricultural day
+     laborer in England, in 1762, was estimated as follows: for
+     bread and flour, £6 10s. per annum; for vegetables and
+     fruit, £1 1-2/3s.; for fuel, light and soap, 2-9-5/6s.; for
+     milk, butter and cheese, £1 1-6-5/6s.; for meat, £1 6s.; for
+     house-rent, 1-6s.; for clothing, bedding, etc., 2-16-1/3s.;
+     for salt, beer and colonial wares, 1-16-5/6s.; for medicine,
+     expenses attending confinement of wife, etc., 1-6½s. (_J.
+     Wade_, History of the middle and working Classes, 1853,
+     545.) Concerning 1796, compare _Sir F. M. Eden_, State of
+     the Poor, I, 660, 1823; _Lowe_, on the present Condition of
+     England. Compare on the receipts and expenses of ten working
+     families in and about Mühlhausen, the tables in the Journal
+     des Economistes, October, 1861, 50; and further
+     _Ducpétiaux_, Budgets économiques des Classes ouvrières en
+     Belgique, 1855. According to _Playfair_ in _Knop_,
+     Agriculturchemie, I, 810, ff., different classes of grown
+     men need daily food.
+
+     ===================+=========+========+========+========+========
+        GRAMMES.        |  _1._   |  _2._  |  _3._  |  _4._  |  _5._
+     -------------------+---------+--------+--------+--------+--------
+     Plastic material,  |  56.70  |  70.87 | 119.07 | 155.92 | 184.27
+     Fat,               |  14.70  |  28.35 |  51.03 |  70.87 |  70.87
+     Starch,            | 340.20  | 340.20 | 530.15 | 567.00 | 567.00
+     ===================+=========+========+========+========+========
+
+     Here 1 stands for a convalescent who can bear only enough to
+     preserve life; 2, the condition of rest; 3, moderate motion
+     of from 5 to 6 English miles' walk daily; 4, severe labor =
+     a walk of 20 English miles daily; 5, very severe labor = to
+     a day's walk of 14 English miles, with a load weighing 60
+     lbs. If the fat be given in terms of starch, the aggregate
+     need of both substances in the case of 1 is 6.6 times as
+     great as the need of plastic substance; in the case of 2, 3,
+     4, and 5, respectively 5.7, 5.2, 4.8 and 4.0 times as much.
+
+     A Dutch soldier doing garrison duty receives daily, in times
+     of peace, 0.333 kilogrammes of wheat flour, 0.125 of meat,
+     0.850 of potatoes, 0.250 of vegetables, containing in the
+     aggregate 60 grammes of albumen. In forts, where the service
+     is more severe, he receives 0.50 kilogrammes of wheat flour,
+     0.06 of rice or groats, with an aggregate amount of 116
+     grammes of albumen. (_Mulder_, Die Ernährung in ihrem
+     Zusammenhange mit dem Volksgeiste, übersetzt _von
+     Molecshott_, 1847, 58 seq.) According to the researches of
+     Dr. Smith, in order to avoid the diseases caused by hunger,
+     a man needs, on an average, to take 4,300 grains of carbon
+     and 200 grains of nitrogen in his daily food; a woman 3,900
+     grains of carbon and 180 grains of nitrogen. In 1862, the
+     workmen in the famishing cotton industries of Lancashire
+     were actually reduced to just about this minimum. (_Marx_,
+     Kapital, I, 642.) Death from starvation occurs in all
+     vertebrates when the loss of weight of the body, produced by
+     a want of food, amounts to between two-fifths and one-half
+     of what it was at the beginning of the experiment.
+     (_Chossat_, Recherches expérimentales sur l'Inanition, 184,
+     3.)]
+
+
+SECTION CLXIII.
+
+WAGES OF LABOR.--POWER OF THE WORKING CLASSES
+OVER THE RATE OF WAGES.
+
+In this way, the working classes hold in their own hands one of the
+principal elements which determine the rate of wages; and it is wrong to
+speak of an "iron law" which, under the control of supply and demand,
+always reduces the average wages down to the means of subsistence.[163-1]
+For the moment, indeed, not only individual workmen, but the whole
+working class is master of the supply of its commodity only to a very
+small extent; since, as a rule, the care for existence compels it to
+carry, and that without interruption, its whole labor-power to market.
+But it is true that the future supply depends on its own will; since,
+with an increase or decrease in the size of the families of workingmen,
+that supply increases or diminishes. If, therefore, by a favorable
+combination of circumstances, wages have risen above the height of
+urgent necessity, there are two ways open to the working class to take
+advantage of that condition of things. The workman either raises his
+standard of living, which means not only that his necessary wants are
+better satisfied, his decencies increased and refined, but also and
+chiefly, that the intellectual want of a good prospect in the future,
+which so particularly distinguishes the honorable artisan from the
+proletarian is taken into consideration. And it is just here that a
+permanent workingmen's union, which should govern the whole class, might
+exert the greatest influence. Their improved economic state can be
+maintained only on condition that the laboring class shall create
+families no larger than they hope to be able to support consistently
+with their new wants.[163-2]
+
+Or, the laboring class continues to live on as before, from hand to
+mouth, and employ their increased resources to gratify their sexual
+appetite earlier and longer than before, thus soon leading to an
+increase of population.
+
+The English took the former course in the second quarter of the last
+century, when English national economy received a powerful impetus, and
+the large demand for labor rapidly enhanced the rate of wages. The
+Scotch did in like manner a generation later. The second alternative was
+taken by the Irish, when the simultaneous spread of the cultivation of
+the potato[163-3] and the union with England, at the beginning of the
+nineteenth century, gave an extraordinary extension to their resources
+of food. While the population of Great Britain, between 1720 and 1821,
+did little more than double, the population of Ireland increased from
+2,000,000 to nearly 7,000,000 between 1731 and 1821. No wonder,
+therefore, that the average wages of labor was twenty to twenty-four
+pence per day in the former, and in the latter only five pence.
+(_MCCulloch._)[163-4]
+
+Naturally enough, this difference of choice by the two peoples is to be
+explained by the difference in their previous circumstances. The Irish
+people, robbed by violence of their own higher classes, and, therefore,
+and on this account precisely, almost entirely destitute of a middle
+class, had lost the check on increase they possessed in the middle ages,
+without having as yet assimilated to themselves the checks which come
+with a higher stage of culture. Their political, ecclesiastical and
+social oppression allowed them no hope of rising by temporary sacrifices
+and energetic efforts permanently to a better condition as citizens or
+gentlemen. Only the free man cares for the future. Hence, the sexual
+thoughtlessness and blind good nature, the original tendencies of the
+Irish people, necessarily remained without anything to counterbalance
+them. It always supposes a high degree of intelligence and
+self-restraint among the lower classes, when an increase in the
+thing-value, or the real value of wages, does not produce an increase in
+the number of workmen, but in their well-being. The individual is too
+apt to think that it matters little to the whole community whether he
+brings children into the world or not, a species of egotism which has
+done most injury to the interests in common of mankind. As a rule, it
+requires a great and palpable enhancement of wages to make workmen, as a
+class, raise their standard of living.[163-5] [163-6]
+
+     [Footnote 163-1: Compare _Lassalle_, Antwortschreiben an das
+     Central Comite zur Berufung eines allg. deutschen
+     Arbeitercongresses, 1863, 15; also _Turgot_, sur la
+     Formation etc., § 6. When _Lassalle_ says that when a varied
+     standard of living has become a national habit it ceases to
+     be felt as an improvement, he says what is in a certain
+     sense true. But is the man to be pitied who, absolutely
+     speaking, is getting on well enough; relatively speaking,
+     better off than before; but who is only not better off than
+     other men?]
+
+     [Footnote 163-2: A case in Holstein, in which, in the first
+     half of the eighteenth century, the serfs of a hard master
+     conspired together not to marry, and thus soon forced him to
+     sell his estate. (_Büsch_, Darstellung der Handlung, V, 3,
+     II.)]
+
+     [Footnote 163-3: On the otherwise remarkable economic
+     advance in Ireland about 1750, see _Orrey_, Letters
+     concerning the Life and Writings of Swift, 1751, 127;
+     _Anderson_, Origin of Commerce, a., 1751.]
+
+     [Footnote 163-4: Compare especially _Malthus_, Principles,
+     ch. 4, sec. 2. How little Adam Smith dreamt of this may be
+     best seen in I, 115, Bas. Recently, the average wages per
+     week amounted in England to 22½s., in Scotland to
+     20½s., in Ireland to 14¾s. (_Levi_, Wages and Earnings
+     of the working Classes, 1866.)]
+
+     [Footnote 163-5: Thus the unheard of long series of
+     excellent harvests in England, between 1715 and 1765,
+     contributed very largely to this favorable transformation.
+     Day wages expressed in wheat, between 1660 and 1719,
+     amounted on an average to only about 2/3 of a peck; between
+     1720 and 1750, to an entire peck. In the fifteenth century,
+     a similar series of good harvests contributed very much to
+     the flourishing condition of the "yeomanry." Under Henry
+     VII., workmen earned from two to three times as much corn as
+     they did a century later. And so in France, the great
+     Revolution at the end of the eighteenth century, by setting
+     free a vast quantity of hitherto bound-up force, enhanced
+     the productiveness of the entire economy of the nation, and
+     made the division of the national income more nearly equal.
+     There is an essential connection here between the rapidity
+     of the transition and the facts, that the habits of
+     consumption of the working class received a powerful
+     impulse, and that population increased much less rapidly
+     than the national income. Compare _John Stuart Mill_,
+     Principles, II, ch. 11, 2. In our own days again, English
+     workmen had a splendid opportunity to raise their standard
+     of life. Emigration to Australia, etc. preponderated over
+     the natural increase of population to such an extent that,
+     in 1852, for instance, only 217,000 more human beings were
+     born in England and Wales than died, and 368,000 emigrated.
+     At the same time, exports increased: in 1849, they were
+     £63,000,000; in 1850 £71,000,000; about the end of 1853,
+     something like £90,000,000.
+
+     This golden opportunity was used by the English laboring
+     classes to both largely multiply marriages and to enhance
+     the rate of wages. The number of marriages contracted in
+     England yearly, from 1843 to 1847, was 136,200; from 1853 to
+     1857, 159,000. The number of births annually, from 1843 to
+     1847, was 544,800; from 1853 to 1857, 640,400. And wages, in
+     a number of industries, rose, between 1839 and 1859, from
+     about 18 to 24 per cent. (Quarterly Review, July, 1860, 86),
+     while the prices of most of the necessaries of life
+     declined. That, in the same time, the condition of English
+     laborers was elevated, both intellectually and morally, is
+     proved by many facts cited in _Jones' and Ludlow's_ work on
+     the social and political condition of the laboring classes
+     in England. In Germany, the recent establishment of peace on
+     a firm footing and the French war contributions have given
+     the country an impulse which might be taken advantage of by
+     the laboring class with the happiest results if they would
+     accustom themselves to more worthy wants and at the same
+     time preserve their accustomed industry.]
+
+     [Footnote 163-6: The cheapening of the necessaries of life,
+     experience shows, is more likely to lead to an increase of
+     population; that of luxuries, to a raising of the standard
+     of life or of comfort.]
+
+
+SECTION CLXIV.
+
+WAGES.--COST OF PRODUCTION OF LABOR.
+
+As the cheapening of the means of subsistence, when the circle of wants
+of the laboring class has not correspondingly increased, leads to a
+decline of wages, so an enhancement of their price must, when wages are
+already so low as only to be able to satisfy indispensable wants,
+produce an increase in the rate of wages. The transition in the former
+case is as pleasing as in the latter it is replete with the saddest
+crises.[164-1] The slower the rise in the price of the means of
+subsistence is, the more it is to be feared that the working classes
+will seek to meet it, not by emigration or by a diminished number of
+marriages, but by decreasing the measure of their wants, the
+introduction of a poorer quality of food, etc.[164-2]
+
+However, all this is true only of permanent changes in the average price
+of the means of subsistence, such as are produced, for instance, by the
+development of agriculture, by taxation etc. Transitory fluctuations,
+such as result, for instance, from a single good or bad harvest, cannot
+have this result.[164-3] It is, in poor countries at least, one of the
+worst effects of a bad harvest, that it tends to positively lower the
+rate of wages. A multitude of persons who would otherwise be able to
+purchase much labor are now deterred from doing so, by the enhancement
+of the price of food.[164-4] On the other hand, the supply increases:
+many men who before would not work even for money, see themselves now
+compelled to do so. Those who have been workmen hitherto are compelled
+by want to make still greater exertions.[164-5]
+
+In very cheap years, all this is naturally reversed.[164-6]
+
+     [Footnote 164-1: According to _McCulloch_, Edition of _Adam
+     Smith_, 472, the food of a day laborer's family constitutes
+     between 40 and 60 per cent. of their entire support. In the
+     case of Prussian field hands, it is generally 54 per cent.
+     greatest in the province of Saxony, viz., 58 per cent. and
+     lowest in Posen, 43 per cent. Compare _Rau_, Lehrbuch, I, §
+     191. This may serve as a point of departure, from which to
+     measure the influence of a given enhancement of the price of
+     corn. In opposition to _Buchanan_ (Edition of _Adam Smith_,
+     1817, 59), who had denied the influence of the price of the
+     means of subsistence on the rate of wages, see _Ricardo_,
+     Principles, ch. 16.]
+
+     [Footnote 164-2: How easily English farmers have accustomed
+     themselves to the consequences of momentary calamities, may
+     be seen from _John Stuart Mill_, Principles, II, ch. 11, 5
+     seq.; _Thornton_, Population and its Remedy, 1846, passim.
+     _Malthus_, Principles, sec. 8, shows in opposition to
+     _Ricardo_, Principles, ch. 8, that it is not all one to the
+     laboring classes whether their wages rise while the price of
+     the means of subsistence remains the same, or whether the
+     rate of wages remaining nominally the same, the commodities
+     to be purchased decline in price. If for instance,
+     potato-food, physiologically considered, was just as good as
+     flesh-food and wheat bread, yet an unmarried workman or a
+     father with a number of children below the average would be
+     able to save less from the former for the reason that it
+     possesses less value in exchange. (Edinburg Rev., XII, 341.)
+     Thus, e. g., in Ireland, between _A. Young_ and _Newenham_
+     (1778-1808), the rate of wages increased more than the price
+     of potatoes, but all other means of subsistence in a still
+     greater ratio. (_Newenham_, A view of Ireland, 1808.)
+     Compare _Malthus_, On the Policy of Restricting the
+     Importation of foreign Corn, 1815, 24 ff.; contra.
+     _Torrens_, on the Corn trade, 1820, 374 ff.]
+
+     [Footnote 164-3: Compare _Garve_ in _MacFarlan_, On
+     Pauperism, 1785, 77. Thus, in the United States, the same
+     quantities of coffee, leather, pork, rice, salt, sugar,
+     cheese, tobacco, wool, etc., could be earned in 1836 by 23.5
+     days' labor; in 1840, by 20.75; in 1843, by 14.8; in 1864,
+     by 34.6. (_Walker_, Science of Wealth, 256.)]
+
+     [Footnote 164-4: The person who formerly consumed perhaps
+     four suits of clothes in a year now limits himself to two,
+     and forces the tailor to dismiss one journeyman. In Bavaria,
+     the dear times, 1846-47, and probably also the disturbances
+     of 1848-49, caused officials, pensioners, annuitants and
+     professional men to discharge one-tenth of the female
+     domestics they employed in 1840. (_Hermann_, Staatsw.
+     Unters, II, Aufl., 467.)]
+
+     [Footnote 164-5: The labor of digging during the time of
+     scarcity in England was paid one-third of the price usually
+     paid in good years. (_Porter_, Progress of the Nation, III,
+     14, 454.) On the Slavic portions of Silesia, see _Hildebrand's_
+     Jahrb., 1872, I, 292. According to _Rogers_, I, 227 ff., 315
+     ff., and the table of prices in the appendix to _Eden_,
+     State of the Poor, the price in England of a quarter of
+     wheat and a day's wages was, in--
+
+          1287,      2s.  10¼d.     3d.
+          1315,      14s. 10-7/8d.     3d.
+          1316,      15s. 11-7/8d.     3-7/8d.
+          1392,       3s.  2-5/8d.     5d.
+          1407,       3s.  4d.         3d.
+          1439,  8s.-26s.  8d.         4½d.
+          1466,       5s.  8d.       4-6d.
+          1505,       6s.  8d.         4d.
+          1575,      20s.              8d.
+          1590,      21s.            3-6d.
+          1600,                       10d.]
+
+     [Footnote 164-6: _Petty_, Several Essays on Political
+     Arithmetic, 133 ff. _Adam Smith_, Wealth of Nat., I, ch. 8.
+     _Ricardo_, Principles, ch. 9. In Hesse, in consequence of a
+     series of many rich harvests from 1240 to 1247, no servants
+     could be had at all, so that the nobility and clergy were
+     obliged to till their own lands. (_Anton_, Gesch. der
+     deutschen Landwirthschaft, 111, 209.)]
+
+
+SECTION CLXV.
+
+WAGES.--THE DEMAND FOR LABOR.
+
+The demand for labor, as for every other commodity, depends, on the one
+hand, on the value in use of it, and on the other, on the purchaser's
+capacity to pay for it (his solvability), These two elements determine
+the maximum limit of wages, as the means of support considered
+indispensable by the workmen determine the minimum. There are
+circumstances conceivable under which the rise in wages might entirely
+eat up rents; but there must always be a portion of the national income
+reserved to reward capital (its profit). If wages were to absorb the
+latter also, the mere owner of capital would cease to have any interest
+in the progress of production. Capital would then be withdrawn from
+employment and consumed.[165-1] Obviously, no man engaged in any
+enterprise can give more as wages to his workmen than their work is
+worth to him.[165-2] Hence the additional product in any branch of
+industry, due to the labor of the workman last employed, has a
+controlling influence on the rate of the wages which can be paid to his
+fellow workmen. If the additional products of the workmen successively
+last employed constitute a diverging series,[165-3] the last term in the
+series is the natural expression of the unsurpassable maximum of wages;
+if they constitute a converging series, men the employer can pay the
+last workman higher wages than the additional product due to him;
+provided, however, that the reduction which is to be expected in the
+case of the workmen previously employed to the same level still leaves
+him a sufficiently high rate of profit.[165-4] Hence the growing skill
+of a workman, in and of itself, makes an increase of his wages
+possible;[165-5] while, conversely, if he can be replaced by capital,
+which always relatively decreases the value in use of his labor, there
+is a consequent pressure on his wages.
+
+     [Footnote 165-1: _Storch_, Handbuch, I, 205 seq.]
+
+     [Footnote 165-2: Higher wages promised, for instance, as a
+     reward for saving a human life or some other very precious
+     thing in great danger of being destroyed. In the case of
+     material production, labor is worth to the party engaged in
+     the enterprise, at most, as much as the price of the product
+     after the remaining cost of reproducing it is deducted.]
+
+     [Footnote 165-3: Possibly in consequence of a better
+     division of labor or of some other advance made in the
+     technic arts.]
+
+     [Footnote 165-4: Thus, for instance, in harvesting potatoes,
+     if, after they have been ploughed up, only those nearest the
+     surface are collected, a laborer can gather over thirty
+     Prussian _scheffels_ in a day. But the fuller and completer
+     the gathering of potatoes desired is, the smaller will be
+     the product of one workman and of one day's labor. If,
+     therefore, a man wants to gather even the last bushel in a
+     potato field of 100 square rods, so much labor would be
+     required to accomplish it that the workman would not gather
+     enough to feed him during his work, to say nothing of
+     supplying his other wants. Supposing that 100 _scheffels_ of
+     potatoes had grown on 100 square rods, and that of these
+     were harvested--
+
+     _When the number of      _Then the additional yield
+      men employed in          obtained by the
+      gathering them was_      last workman employed is_
+
+          4,    80   scheffels,
+          5,    86.6     "        6.6 scheffels.
+          6,    91       "        4.4     "
+          7,    94       "        3       "
+          8,    96       "        2       "
+
+     (_von Thünen_, Der isolirte Staat, II, 174 ff.)]
+
+     [Footnote 165-5: In Manchester, in 1828, the wages paid for
+     spinning one pound of cotton yarn, No. 200, was 4s. 1d.; in
+     1831, only from 2s. 5d. to 2s. 8d. But, in the former year,
+     the spinner worked with only 312 spools; in the latter, with
+     648; so that his wages increased in the ratio of 1274 to
+     1566. (_Senior_, Outlines.)]
+
+
+SECTION CLXVI.
+
+WAGES.--PRICE OF COMMON LABOR.
+
+In the case of a commodity as universally desired as human labor is, the
+idea of the purchasers' capacity to pay (solvability) must be nearly
+commensurate with the national income, or to speak more correctly, with
+the world's income.[166-1] In regard to the different kinds of labor,
+and especially to common labor, it is evident that the different kinds
+of consumption require very different quantities of them. Here,
+therefore, we depend on the direction which national consumption takes,
+and this in turn is most intimately related to the distribution of the
+national income.[166-2] If all workmen were employed in nothing but the
+production of articles consumed by workmen, the rate of wages would be
+determined almost exclusively by the ratio between the number of the
+working population and the amount of the national income. But, if this
+were the case, landowners and capitalists would be obliged to live just
+as workmen do, and their highest luxury would have to consist in feeding
+idlers. (§ 226). The effect must be much the same, when the wealthy are
+exceedingly frugal and employ their savings as rapidly as possible in
+the employment of common home labor; while, on the other hand, the
+exportation of wheat, wood, and other articles, which the working
+classes consume, in exchange for diamonds, lace, champagne, diminishes
+the efficient demand for common labor in a country.[166-3]
+
+The assumption frequently made, that the demand for labor depends on the
+size of the national capital, is far from exact.[166-4] Thus, for
+instance, every transformation of circulating into fixed capital,
+especially when the labor used in effecting this transformation is
+ended, diminishes the demand for other labor. That principle is not
+unconditionally true, even in the case of circulating capital. Thus, for
+instance, the rate of wages is wont to be raised by the transfer of
+capital from such businesses as require little labor into such as
+require much.[166-5] Only that part of circulating capital can have any
+weight here which is intended, directly or indirectly, for the purchase
+of labor and for the purchase of each kind of labor in particular.[166-6]
+The capital of the employer is, by no means, the real source[166-7] of the
+wages of even the workmen employed by him, It is only the immediate
+reservoir through which wages are paid out, until the purchasers of the
+commodities produced by that labor make good the advance, and thereby
+encourage the undertaker to purchase additional labor. Correlated to this
+is the fact, that other circumstances being the same, those workmen usually
+receive the highest wages who have to do most immediately with the
+consumer.[166-8]
+
+     [Footnote 166-1: _Senior_ denies this. Let us suppose that
+     agriculture in Ireland employs on every 200 acres ten
+     working men's families, one-half of whom are used to satisfy
+     the aggregate wants of the working people, and the other
+     half in the production of wheat to be exported to England.
+     If now the English market requires meat and wool instead of
+     wheat, the Irish landowner will, perhaps, find it
+     advantageous, of the ten laboring families, to employ one in
+     stock raising, a second in obtaining food, etc. to support
+     the laborers, and to discharge all the others. If, then, the
+     increased net product is employed in the purchase of other
+     Irish labor, all goes on well enough; but if, instead of
+     this, the landowners should import articles of English
+     manufacture, the demand for labor in Ireland would doubtless
+     decrease, notwithstanding the increase of its income.
+     (Outlines, I, 154.) _Senior_ here overlooks two things:
+     first, that in the supposed case, if eight-ninths of Irish
+     laborers are thrown out of employment, spite of the
+     increased income of the owners of landed estates, Ireland's
+     national income is on the whole probably diminished (§ 146),
+     and secondly, that, possibly, the demand for labor in
+     England experiences a greater increase than the decrease in
+     Ireland; since, with the addition to the world-income, there
+     would be an increase in the world-demand for labor.]
+
+     [Footnote 166-2: Compare _Hermann_, Staatswirthsch.
+     Untersuch., 280 ff. Earlier yet, _Malthus_, Principle of
+     Population, II, ch. 13.]
+
+     [Footnote 166-3: Thus, _Thomas More_, Utopia, 96, 197,
+     thinks that if every one was industrious and engaged in only
+     really useful business, no one would need to fatigue himself
+     very much; while, as it is now, the few real laborers there
+     are wear themselves out in the service of the vanity of the
+     rich, are poorly fed and worked exceedingly hard.]
+
+     [Footnote 166-4: _McCulloch_, Principles, 104, seq. 2d ed.]
+
+     [Footnote 166-5: Thus, in France, during the continental
+     blockade, distant ocean commerce declined, and manufactures
+     flourished instead. (_Lotz_, Revision, III, 134.)]
+
+     [Footnote 166-6: Thus, _Adam Smith_ divides "the funds
+     destined for the payment of wages" into two kinds: the
+     excess of employers' income over their own maintenance, and
+     the excess of their capital over the demands of their own
+     use of it. (Wealth of Nat, I, ch. 8.) _Senior_ considers it
+     a self-evident principle, that the rate of wages depends on
+     the size of the "fund for the maintenance of laborers
+     compared with the number of laborers to be maintained."
+     (Three Lectures on the Rate of Wages, 1830, Outlines, 153,
+     ff.) But what determines the quota of the aggregate national
+     wealth and national income that is to constitute this fund?
+     _Carey_, Rate of Wages, 1835, has a very exhaustive
+     commentary on _Senior_.]
+
+     [Footnote 166-7: _Watts_, Statist. Journal, 1861, 500,
+     asserts altogether too generally that an "increase of profit
+     increases the future wages-fund, and consequently the demand
+     for laborers;" and that therefore every new machine useful
+     in manufactures must also be of use to the laboring class.
+     The employer engaged in any enterprise who has grown richer,
+     _can_ pay more wages, but whether he _will_ do it depends on
+     other causes, and even his ability to do it, in the long
+     run, on his customers. When _John Stuart Mill_, Principles,
+     I, ch. 5, 9, says that only the capital which comes into the
+     hands of labor before the completion of their work
+     contributes to their support, it is as if he were to explain
+     the phenomena of prices by demand and supply, and nothing
+     else, denying the influence of the cost of production, of
+     value in use, and of the deeper determining causes upon
+     them. (_Supra_, § 107, note 1.) Compare _Roesler_, Z. Kritik
+     der Lehre vom Arbeitslohn, 1861, 104 ff. In England, the
+     superstition which to a great extent attached to the idea
+     "wages-fund," was first questioned by _F. Longe_, Refutation
+     of the Wages-Fund Theory of modern Political Economy, 1866.
+     See also _Thornton_, On Labour, II, ch. 1. Even _John Stuart
+     Mill_ dropped his earlier erroneous views on this subject.
+     (Fortnightly Review, May and June, 1869.) Not, however,
+     without exaggeration, as is proved by his well-known saying,
+     that laborers needed capital but no capitalists. Still, even
+     here, he tenaciously holds that a rise in wages which
+     increases the price of some classes of commodities, must
+     decrease the aggregate demand for commodities. But better
+     paid workmen may now increase their demand for commodities
+     to the same extent that the purchasers of labor who do not
+     gain as much as before, or the consumers of the goods whose
+     price has been enhanced diminish theirs. (_Brentano_, in
+     Hildebrand's Jahrbb., 1871, 374.) Only, this increase need
+     not affect the very commodities influenced by the decrease.]
+
+     [Footnote 166-8: Thus, the person who builds his own house
+     is wont to pay his workmen better than a contractor or
+     builder by profession; and the maker of the entire
+     manufactured article, as a rule, suffers less frequently
+     than the maker of only half of it. (_Hermann_, Staatsw.
+     Unters., II, Aufl., 471.)]
+
+
+SECTION CLXVII.
+
+DIFFERENCE OF WAGES IN DIFFERENT BRANCHES OF LABOR.
+
+All the causes which make wages higher in some branches of labor; than
+in others, may be divided into three great categories.[167-1]
+
+A. Rare personal acquirements. The supply of labor requiring rare
+personal ability will always be limited.[167-2] Such labor must,
+naturally, have great value in use, when a small supply of it is met by
+a great demand.[167-3] It sometimes happens that a species of labor can
+be utilized only by a small circle of persons who demand it. But the
+wages for it is raised very high by the great solvability of those who
+do demand it. How frequently it happens, for instance, that a minister
+is paid a very high salary for the ability he possesses of making
+complicated and dry affairs of state attractive to the personal taste of
+his sovereign.[167-4] Here, particularly, the confidence which the
+workman inspires by his skill and fidelity enters as an element. Without
+this confidence, there are many kinds of business which would be crushed
+out entirely by the control it would be necessary to subject them to,
+and others would not be possible at all.[167-5] When, for instance, in a
+large manufacturing establishment, understrappers, workmen, foremen,
+subordinate superintendents, directors, etc., draw different salaries,
+their pay, if equitably graduated, should be in harmony with the
+principles laid down in § 148, The head of a manufacturing
+establishment, for instance, who has organized a more perfect division
+and coöperation of labor, himself, and by means of which ten men are
+enabled to perform the work before performed by twenty, may equitably
+retain, as the reward of his organizing power, a considerable amount of
+what was previously paid out in wages. Louis Blanc's proposition, that
+all should receive equal salaries is, as Bastiat remarks, equivalent to
+the assertion that a yard of cloth manufactured by a lazy or unskillful
+workman is worth as much as two yards manufactured by an industrious and
+skillful one.[167-6]
+
+Such qualified labor, as is treated of here, may be most accurately
+estimated, the quality of which supposes a certain cost of acquisition.
+This cost may be considered as the outlay of so much capital, which,
+with interest,[167-7] should come back to the workman in his wages.
+Otherwise, others would be deterred from entering the same business by
+the example of his loss. Here, especially, it is necessary to take into
+account the long period of apprenticeship or tuition, and the large fees
+paid for the same; and this, whether they depend on the natural
+difficulties in the way of acquirement or on artificial obstacles
+opposed to freedom of competition.[167-8] The influence of these
+circumstances is particularly great in those kinds of labor which
+require a "liberal" education.[167-9] Among the costs of production
+proper, peculiar to this labor-force, must be included, also, the
+necessary support of the workman, during the interval between the
+completion of his studies and the beginning of his full reward.[167-10]
+
+When a species of work requires special current expenses to be made in
+order to its proper performance, these also should of course be made
+good to the workman in his wages. Most intellectual labor, for instance,
+requires quiet surroundings. The brain-worker cannot share his study
+with his family, and, therefore should receive wages or remuneration
+large enough in amount to enable him to arrange his dwelling
+accordingly. A similar circumstance, only in a much higher degree,
+enhances the price paid for diplomatic service.
+
+     [Footnote 167-1: Excellent germs thereof in _Adam Smith_,
+     Wealth of Nat., I, ch. 10, 1. Earlier yet, in _Galiani_,
+     Della Moneta, I, 2. _Cantillon_, Nature du Commerce, 24 ff.]
+
+     [Footnote 167-2: Even in the case of mere manual labor, for
+     instance, a skillful packer of goods is paid higher wages
+     than a mere day laborer; a sower better than a plowman or a
+     digger; a vintner, in general, better than an agricultural
+     laborer: in the Palatinate of the Rhine, in the ratio of
+     36:24. Thus, almost anyone can paint a door or a house,
+     while an artist possesses a species of natural monopoly.]
+
+     [Footnote 167-3: Thus, the Greek juggler, who understood how
+     to throw lintels from a certain distance through the eye of
+     a needle, was very appropriately rewarded by his king with a
+     bushel of lintels. On the other hand, the high fee paid for
+     an operation for cataract depends both on the great
+     importance of the eye which cannot be replaced in any way,
+     and on the rarity of the courage among doctors to pierce the
+     eye of a living man. Very remarkable achievements, which it
+     requires great education to understand, are generally paid
+     for at a very low rate. (_Stein_, Lehrbuch, 123.)]
+
+     [Footnote 167-4: I need only recall _Richelieu_ and
+     _Mazarin_, the last of whom left an estate worth 200,000,000
+     livres. (_Voltaire_, Siècle de Louis XIV., ch. 6.) In
+     Parisian industries, few workmen are as well paid as those
+     who are skilled in rapidly effecting changes of form. The
+     so-called _premières de modes_ frequently received more than
+     1,800 francs a year, while the _apprêteuses_ received only
+     from 15 to 20 sous a day. (Revue des deux Mondes, Sept. 15,
+     1850.) There are women there paid very well for making
+     pin-cushions, pen-wipers, etc., each one of a different
+     form; but as soon as any one form ceases to be a novelty,
+     the wages paid for making it sinks to a minimum. (_M. Mohl_,
+     Gewerbswissenschaftliche Reise durch Frankreich, 87.)]
+
+     [Footnote 167-5: Jewelers, lawyers, statesmen, generals.
+     _Senior_ says that of the income of £4,000 which a lawyer or
+     a doctor draws, only £40 are wages for his labor; £3,000 are
+     a rent paid for the possession of extraordinary talent, or
+     for his good luck, and £960 as the interest on his
+     intellectual capital, which is also the chief element of
+     wealth. (Outline, 134.)]
+
+     [Footnote 167-6: On the sad experience of the tailors'
+     association founded by Louis Blanc himself, at Clichy, and
+     in consequence of which they soon gave up paying equal wages
+     and returned to piece wages, see Journal des Economistes,
+     Mars, 1850, 349.]
+
+     [Footnote 167-7: As the interest on land improvements
+     assumes the character of rent, so also does that of the
+     education of labor the character of wages. The rate of
+     interest usual in a country, and the average duration of the
+     life of the workman affect the capital thus invested as a
+     species of annuity.]
+
+     [Footnote 167-8: Wages in the country are generally lower
+     than in the cities. In the electorate of Hesse, for
+     instance, on the supposition of steady employment, males, in
+     the country, received 69 thalers, 23 silver groschens a
+     year; females, 55 thalers, 9 silver groschens; in the
+     cities, on the other hand, males, 88 thalers, 23 silver
+     groschens, and females 61 thalers, 28 silver groschens.
+     (_Hildebrand_, statistische Mittheilungen, 101, 137.) And
+     so, according to _Colquhoun_, Treatise on Indigence, 1806,
+     the English agricultural laborers received, on an average,
+     £31 per annum, and manufacturing workmen, £55. The reason of
+     this is, besides the greater facility of learning how to
+     perform agricultural labor, the greater dearness of living
+     in cities, and in England also, because industry has
+     developed much more rapidly than agriculture.]
+
+     [Footnote 167-9: The cost of bringing up a common laborer,
+     in England, according to _Senior_, is £40; a gentleman,
+     £2,040. (Outlines, 205.) The more expensive an education
+     which one acquires for its own sake and without any special
+     object beyond this in view, is, the less can the capital
+     laid out in it affect wages. (_von Mangoldt_, V. W. L.,
+     382.)]
+
+     [Footnote 167-10: If the salaries of clergymen are, on an
+     average, lower than the income of a lawyer or a doctor, it
+     is partly because theological candidates are provided for
+     much earlier, and partly because of the lesser cost
+     attending the study of theology. Thus, at the end of the
+     eighteenth century, there were 350 students at the
+     University of Tubingen who are maintained gratis, on
+     foundation-money, and who had previously attended monastery
+     schools, free of charge. (_Nicolai_, Reisebescreibungen, XI,
+     73.) The remarkable contrast between the high wages of the
+     Athenian sophists and the low wages of modern abbés, Adam
+     Smith accounts for principally by the many scholarships of
+     modern times. In Saxony, in 1850 etc., the outlay by the
+     state and of foundation-funds for the education of a student
+     amounted to an average of nearly 140 thalers. (_Engel._)]
+
+
+SECTION CLXVIII.
+
+DIFFERENCE OF WAGES IN DIFFERENT BRANCHES OF LABOR. (CONTINUED.)
+
+B. The great economic risk of the work. When a branch of labor necessary
+to a country is, notwithstanding, attended by many chances of failure to
+the individual who devotes himself to it, a sufficient supply of the
+labor can be relied on only in case that the danger attending it is
+compensated for by a corresponding premium paid to success.[168-1] The
+choice of a profession or avocation, Adam Smith has compared to a
+lottery, in which the fortunate winners gain only what the unfortunate
+have lost. The greater the prizes, the greater also the number of
+blanks.[168-2] However, the surplus wages in risky kinds of labor are
+not sufficient to constitute a full insurance premium. This is connected
+with the vanity of men who, as a rule, over-estimate not only their
+talent but their good fortune,[168-3] and especially in youth, when they
+decide on the choice of a profession, etc. According to this, wages must
+be specially low where even complete failure does not endanger the
+living or the social position of the workman. Partly on this account are
+the industries carried on by women so poorly remunerated;[168-4] as also
+such work as is done by a large class of people to fill up their leisure
+hours.[168-5]
+
+The prospect of frequent interruptions in any kind of labor must have
+the same effect on the wages paid for it as its economic or business
+risk.[168-6] Thus, for instance, a mason or roofer must earn at least
+enough, during the days he can work, to enable him to live during the
+time he is prevented working by bad weather. Hence, the highness of his
+wages may, in some respects, be called an apparent one.[168-7] Wages
+paid by the week more generally tend to equality than wages paid by the
+day, and more so yet wages paid by the year, for then winter and summer
+compensate the one for the other. When the workman must be ever ready to
+perform his task, account must be taken not only of the number of hours
+he is engaged, but also of fractions of his waiting hours, which must be
+paid for likewise.[168-8] Two half days cost almost everywhere more than
+one whole one.
+
+The number of holidays plays a very important part here. In Protestant
+countries, the workman must, in about three hundred work days, earn
+enough to live on for about sixty holidays as well. In Catholic
+countries, before the time of Clement XIV., he had to earn enough in
+addition to support himself for about one hundred and fifty holidays, on
+ninety of which he performed no work whatever.[168-9] So large a number
+of holidays produces a higher rate of wages or necessitates a low
+standard of life among the working classes.[168-10] Something similar is
+true of evening leisure and rest;[168-11] _i. e._, of the time when
+labor ceases.
+
+     [Footnote 168-1: The greater the preparatory cost of labor
+     is, the more difficult it is for workmen to go from one kind
+     of labor to another; but, at the same time, the more certain
+     it is that, without the inducement of a premium paid, there
+     will be no after increase or recruiting of labor-force.]
+
+     [Footnote 168-2: Thus, for instance, in the country, where
+     doctors generally get along well enough, the most skillful
+     never obtains any very distinguished position. But, in large
+     cities, on the other hand, there is the greatest difference
+     between first-class physicians and obscure practitioners.
+     Great generals usually obtain a larger income and greater
+     influence than great admirals; and so it is that prizes in
+     the military lottery are greater, and there are therefore
+     more blanks than in the naval lottery. The common soldier is
+     almost everywhere worse paid than the common sailor. (_Adam
+     Smith._) To some extent, this depends on the prison-like
+     life of the seaman in times of service, and in the absence
+     of an attractive uniform. As to the extent that the lottery
+     comparison is defective, see _Macleod_, Elements, 215.]
+
+     [Footnote 168-3: Who, otherwise, would have anything to do
+     with a lottery in which the mass of players were certain to
+     lose, and the keeper of it to gain? And this accounts for
+     the fact well known to all financiers, that the amount of
+     the budget remaining the same, a greater eagerness to enter
+     the military service of the country is inspired by endowing
+     the higher positions munificently--provided they are
+     attainable by all--and paying the lower ones in a very
+     niggardly way, than when the pay is made more uniform.
+     Something similar is to be observed in the ecclesiastical
+     service of the Roman and Protestant churches, inasmuch as
+     the former, considered from an economic point of view,
+     offers more magnificent prizes, but also more blanks, while
+     the latter divides its emoluments more equally.]
+
+     [Footnote 168-4: As most seamstresses are, when the worst
+     comes to the worst, supported by their parents, connections
+     by marriage, brothers, etc., the condition of those who have
+     to live by their needle must be a pretty hard one. Who is
+     not familiar with the refrain to _Hood's_ celebrated song of
+     the shirt: "Oh God, that bread should be so dear, and flesh
+     and blood so cheap!" There is a "distressed needlewoman's
+     society" in London. They undoubtedly suffer from an
+     overcrowding of their avocation, yet their chief desire is
+     that the competition of all who do not live exclusively by
+     the labor of their hands should be prohibited; for instance,
+     that of seamstresses who are paid for their work outside of
+     factories. (Edinb. Rev., 1851, 24.) In Paris, in 1845, the
+     yearly earnings of women workers averaged 375 francs, their
+     yearly wants 500 francs. (Journal des Economistes, X, 250.)
+     This does not apply to female servants whose wages,
+     especially in highly cultured localities as the vicinity of
+     large cities (Holstein, Brandenburg), is very high. In
+     England, the wages of female domestics is frequently higher
+     than in the United States; and hence nearly two-thirds of
+     all English girls between fifteen and twenty-five years of
+     age serve as maids. _Browning_, Political and Domestic
+     Condition of Great Britain, 413; _Carey_, Rate of Wages, 92.
+     A remarkable indication that women thrive only in the
+     family. (Compare § 250.)]
+
+     [Footnote 168-5: Thus, the darning of stockings in the sandy
+     parts of North Germany, in the Highlands of Scotland, in the
+     Faroe Islands, and formerly, even in the ante-rooms of the
+     Russian nobility. (_Schlözer_, Anfangsgründe der
+     Staatswirthsch, I, 126.) Flax spinning and linen weaving in
+     Westphalia and Ireland, and wool weaving in the East Indies.
+     Manufacturing industries must be in a very highly developed
+     condition, and machinery carried to a high degree of
+     perfection to compete in price with these accessory
+     industries. Cheapness of many products manufactured in
+     convents and monasteries.]
+
+     [Footnote 168-6: Among these interruptions, may also be
+     reckoned the prospect the laborer has of being early
+     incapacitated for work, and thus of seeing himself cut off
+     from every other source of support. This is one of the
+     principal reasons why opera singers are generally better
+     paid than actors.]
+
+     [Footnote 168-7: In Leipzig, in 1863, mason and carpenter
+     journeymen earned during the summer, from twenty silver
+     groschens to one thaler, ordinary garden workmen, 20 silver
+     groschens, while shoemaker journeymen did not make much more
+     than 3½ thalers a week, and manual laborers, only from 10
+     to 15 silver groschens a day. The masons of Paris have the
+     reputation of being the best patrons of the savings banks,
+     and, on that account, are more exposed to being attacked by
+     thieves than any other class. (_Frégier_, Des Classes
+     dangereuses, II, 3, 1.) High wages paid for threshing in
+     East Prussia, because, the workman during the winter can be
+     employed in very few different kinds of labor, and therefore
+     must earn his entire support by threshing. In Paris, of
+     101,000 persons engaged in industry in 1860, 6,400 had to
+     calculate on no interruption of their work, the remaining
+     number, however, lost with a certain degree of regularity,
+     from 2 to 4 months a year. (Revue des deux Mondes, 15 Fév.,
+     1865.) If the interruption can be so accurately estimated in
+     advance that the workman may engage in some business for
+     himself during the interval, as for instance when the
+     workmen in the Bavarian breweries work during the summer as
+     masons, its influence on wages decreases. (_Storch_,
+     Handbuch, I, 192.) As to how, in Switzerland, since 1850,
+     the guaranty of full employment to masons in winter is
+     considered as an addition to the wages of summer, see
+     _Böhmert_, Arbeiterverhältnisse, I, 141.]
+
+     [Footnote 168-8: _Commissionaires_, hack-drivers,
+     _Extraposthalter_ in Germany, porters, nurses, guides,
+     servants in watering places and countries visited by
+     tourists. A London porter gets at least a shilling an hour.
+     If employed by the day, he of course gets smaller wages.
+     Image venders, who travel from house to house, sell their
+     wares much lower at their own houses. The person who calls
+     them in from the street is obliged to pay them not only for
+     this one journey, but for several others which yielded them
+     no profit.]
+
+     [Footnote 168-9: If we call the minimum daily need or the
+     absolute requirement of the workman = m, the rate of daily
+     wages in the former case must amount to at least m + m/6; in
+     the latter, on the other hand, to m + m/4. A Bavarian
+     holiday estimated at a _minus_ of much more than 1,000,000
+     florins. (_Hermann_, II, Anfl., 192.)]
+
+     [Footnote 168-10: _Von Sonnenfels_, Polit. Abhandlungen,
+     1777, 332 ff.]
+
+     [Footnote 168-11: In a part of Lower Bavaria, in which there
+     were 204 holidays in a year, among them the anniversaries of
+     the consecration of 40 churches in the country about, and a
+     feast day following each such anniversary, as well as
+     target-shooting festivals, the celebration begins at 4
+     o'clock P. M. of the preceding day. (_Rau_, Lehrbuch, I, §
+     193.)]
+
+
+SECTION CLXIX.
+
+THE DISAGREEABLENESS OF CERTAIN CLASSES OF LABOR.--ITS EFFECT ON WAGES.
+
+C. Lastly, the personal disagreeableness of the work, which must be
+compensated for by higher wages. The uncleanness of a coal-worker's
+task, that of the chimney-sweep, and the repulsive labor of the butcher,
+demand high compensation, while other branches of business, themselves
+productive of pleasure, and therefore engaged in by many for pleasure's
+sake only, yield relatively little to those who engage in them as a
+regular industry.[169-1]
+
+To this category belong the kinds of labor which require extraordinary
+effort,[169-2] or which put life or health in unusual jeopardy.[169-3]
+But, indeed, when the danger attending any kind of work is made glorious
+by the romantic light of honor, or by still higher motives, it ceases to
+have any influence on wages.[169-4] On the other hand, the
+disreputableness of a business in itself raises wages;[169-5] whereas,
+scholars, poets, etc., leaving the charm inherent in their occupations
+out of account, are for the most part remunerated only by the honor paid
+them, and, not unfrequently, only by fame after they have gone
+hence.[169-6] And yet their talents are so rare, the preparation so
+laborious, the economic risk so great! Nor is there for the really
+creative workman any such thing as evening rest. (_Riehl._) Common
+intellectual labor is worse paid in our days than it was, comparatively
+speaking, a generation ago; because the increased average education
+makes it less burthensome to most people, and even seem positively
+agreeable to many. It would, indeed, be a dangerous retrogressive step
+towards barbarism, if it should come to such a pass, that labor
+preponderantly intellectual should be permanently more poorly
+remunerated than mere muscular labor.[169-7] [169-8]
+
+     [Footnote 169-1: Thus the chase, fishing in rivers (compare
+     _Theocrit._, Idyll., 21), gardening, fine female manual
+     labor, and literature.]
+
+     [Footnote 169-2: The high wages paid to mowers and threshers
+     may be accounted for on this ground (§ 160). In countries
+     that have a strong heavy soil, wages are frequently 20 per
+     cent. higher than under circumstances otherwise similar
+     where it is sandy or light. In Mexico, a digger gets about
+     twice the wages of an agricultural laborer. (_Senior_, On
+     the Value of Money, 56.)]
+
+     [Footnote 169-3: Almost every trade predisposes to some
+     special disease. Compare _Halfort_, Enstehung, Verlauf und
+     Behandlung der Krankheiten der Künstler und
+     Gewerbetreibenden, 1845. _Livy_, Traité d'Hygiène publique
+     et privée, 1850, II, 755. It has been noticed, in Sheffield,
+     that thoughtless steel polishers look unfavorably on certain
+     new inventions intended to protect workmen against inhaling
+     small particles of stone and iron dust. They dread that if
+     these inventions come into general use, their wages would be
+     lowered in consequence; and prefer a short and merry life to
+     one longer and more quiet.
+
+     In places in which nearly all kinds of work are dangerous,
+     the danger cannot of course relatively raise the wages of
+     anyone. Thus, in the Thuringian forest, the wages of the
+     haulers of wood are very low. (_Lotz_, Revision, III, 151.)]
+
+     [Footnote 169-4: Missionaries! Besides the extremely small
+     wages paid to common soldiers (in the German infantry only
+     36.5 thalers cash per annum, to which in Leipzig, for
+     instance, rations, etc., add about 34 thalers more) is an
+     outlay made by the government principally to effect a levy
+     of the tax of the compulsory labor that lies in
+     conscription. (_Knies._) In the volunteer system, the
+     difference between officers and men is wont to be much
+     smaller. Thus, _Gustav Wasa_ paid his German mercenaries as
+     follows: 6 marks a month to captains, five to lieutenants
+     and 4 to common soldiers. (_Geijer_, Schwed. Gesch., II, 125
+     seq.) Similarly in the case of the Greek hired troops.
+     (_Böckh_, Staatshaushalt der Athener, I, 165 ff.) As to how
+     little at the outbreak of a war, soldier earnest money is
+     increased, and positions as officers most sought after, see
+     _Hermann_, II, Aufl., 479.]
+
+     [Footnote 169-5: Thus, for instance, the skinning or flaying
+     of dead animals is comparatively well paid, to which the
+     rarity of the application of the work of executioners
+     contributes. (_J. Moser_, Patr. Ph., I, No. 34.) The high
+     wages of actors, singers, dancers, and especially of the
+     female members of the stage, depends principally on the
+     contempt with which they were formerly looked upon;
+     excommunicated by the Catholic church, and a scarcely milder
+     sentence passed upon them by the Protestant, until about the
+     middle of the eighteenth century. (_Schleiermacher_,
+     Christliche Sitte, 681.) Compare even _J. J. Rousseau_,
+     Lettre sur les Spectacles à Mr. d'Alembert sur son Article
+     Genève.]
+
+     [Footnote 169-6: _Schiller's_ "Theilung der Erde." _Blanqui_
+     says of the learned: "They are most frequently satisfied
+     with a citizen-crown, and think themselves remunerated when
+     justice has been done to their genius. Their magnanimity
+     impels them, to their own injury, to diffuse their knowledge
+     as rapidly as possible. Thus they are like the light of day
+     which no one pays for, but which all enjoy, without thanking
+     the giver as they ought." The reward of intellectual labor
+     is called an _honorarium_. (_Riehl_, Die Deutsche Arbeit,
+     1861, 232.) According to _J. B. Say_, Traité, II, ch. 7, the
+     poor wages of savants depends on the fact that they take to
+     market, and all at once, a great quantity of what they
+     produce, which cannot even be used up.]
+
+     [Footnote 169-7: In Switzerland, journeymen are often better
+     paid than the clerks kept by the greater tradesmen.
+     (_Böhmert_, Arbeiterverhältnisse, II, 168.) In England,
+     also, since 1850, the wages for "unskilled labor" has risen,
+     relatively, most. (_Tooke_, Hist. of Prices, VI, 177.) It
+     would be a frightful peril to our whole civilization if
+     school teachers and subordinate officials should be turned
+     into enemies of the entire existing state of things by
+     want.]
+
+     [Footnote 169-8: The high wages paid to engineers on
+     railroads is accounted for by the wear, physical and mental,
+     their employment entails, and also by their unavoidable
+     expenses away from home; further, by the importance of the
+     interests confided to their trust. On the Leipzig-Dresden
+     Railway, locomotive engineers, for the most part previously
+     journeymen blacksmiths, earned 900 thalers a year.
+     Similarly, in the case of pilots. The high wages paid on
+     board ships engaged in the slave-trade arose from the
+     unhealthiness of the African coast, where formerly
+     one-sixteenth of the crew died yearly (Edinburg Rev., 480),
+     from the moral turpitude of the business, and from the
+     severe penalties under which it was afterwards prohibited.
+     On the other hand, the low wages paid to European mining
+     laborers is largely the consequence of the certainty of
+     being cared for in old age, of those so employed. Weavers'
+     wages are low because the facility of learning the trade
+     makes it possible for the business to be carried on at home;
+     and hence there is a comparatively great pressure to engage
+     in it. (_Baines_, History of the Cotton Manufacture, 485
+     ff.)
+
+     According to the first annual report of the poor law
+     commissioners (202), the weekly wages in Manchester of
+     hod-carriers was 12s.; of hand-weavers, 7-15s.; of diggers,
+     10-15s.,; of pack-carriers, 14-15s.; of shoemakers, 15-16s.;
+     of machine-weavers, 13-16-5/6s.; of white-washers, 18s.; of
+     tailors, 18s.; of dyers, 15-20s.; of plasterers, 19-21s.; of
+     masons, 18-22s.; of tinsmiths, 22-24s.; of carpenters, 24s.;
+     of spinners, 20-25s.; of machinists, 26-30s.; of iron
+     founders and power-loom tenders, 28-30s. In Belgium, the
+     average daily wages for male labor was 1.18 francs for
+     agricultural laborers; for those engaged in industry, 1.48
+     francs; in the manufacture of linen, 0.80 francs; of cotton,
+     1.55; of woolens, 1.62; of silk, 1.25; of stockings, 1.14;
+     of glass, 2.58; of coal, 1.33. All according to the
+     Statistique générale de la B. In Athens, in the time of
+     Aristophanes, a pack-carrier earned 4 oboli a day; a street
+     sweeper, 3; a stone cutter on the public works, 6; a
+     carpenter, 5; for roofing houses and taking down
+     scaffoldings, each man, 6. The architects who superintended
+     the building of the temple of Polias, on the other hand, got
+     only 6 oboli per day, and the contractor 5. (_Böckh_, I, 165
+     ff.)
+
+     The Edictum Diocletiani of the year 301 after Christ
+     contains the following provisions in relation to wages,
+     besides "board:" shepherds, camel-drivers and muleteers, 20
+     denarii; agricultural laborers, water-carriers, scavengers,
+     25; bakers, masons, roofers, house-finishers and repairers
+     of the inside, lime burners, wheelwrights and common clay
+     moulders, 50; boatsmen, sailors, makers of marble or mosaic
+     floors, 60; wall painters, 70; clay moulders for statues,
+     75; artistic painters, 150. (ed. _Mommsen_, cap. 7.) In
+     slave countries, the price of different slaves is to be
+     judged, mainly, by the above rules. Concerning the Greeks,
+     see _Böckh_, I, 95 ff. _St. John_, The Hellenes, III, 23 ff.
+     It is a characteristic fact that the Romans, after the
+     Syrian war, began to pay high prices for the hitherto much
+     despised kitchen slaves. (_Livy_, XXXIX, 6.) Remarkable
+     fixed prices for slaves by _Justinian_: Cod. VI, 43, 3; VII,
+     7, 1, 5. Thus, in the Lex Burgundionum, tit. 10, the
+     compensation for the murder of a common laborer is fixed at
+     30 solidi; of a carpenter, at 40; of a smith, at 50; of a
+     silversmith, at 100; of a goldsmith, at 150. Advanced
+     civilization is wont to raise the price of slaves who
+     perform work of a higher quality, just as it raises the
+     wages of labor of a higher quality.]
+
+
+SECTION CLXX.
+
+RATE OF WAGES.--INFLUENCE OF CUSTOM.
+
+Custom always exerts a great influence where there is question of
+choosing an avocation with the intention of devoting one's self to it
+entirely and exclusively. There is a public opinion which fixes the
+gradation of the different classes of labor and their appropriate
+reward, which is slow to change, and which both determines, and is
+determined by the relation of supply and demand. There is an equilibrium
+between the pleasantness of work and the rate of wages only in the case
+of such kinds of labor as are on the same social footing. It frequently
+happens, however, that the most repulsive work has to be performed by
+those who are forced to accept any pay and to be satisfied with
+it.[170-1] There are many branches of labor those engaged in which still
+form a kind of exclusive caste; and the pay of the higher branches is
+maintained at a high rate, especially by the fact that the members of
+the castes to which they belong are provident in their marriages. The
+lower classes are not in a condition to meet the preparation necessary
+to engage in such professions, even if they were certain of being
+afterwards reimbursed with interest for the outlay.[170-2] One of the
+chief causes of the lowness of wages paid to women is, that so few
+branches of labor are traditionally open to them, that the few that are,
+are intended to supply luxuries, and are, besides, for the most part,
+over-crowded. The distribution of the aggregate wages earned by any
+industry, among the higher and lower classes of workmen who coöperate in
+it, depends very largely on their social position relatively to one
+another.[170-3] [170-4] Here political forms and changes may exert the
+greatest influence.[170-5]
+
+Thus, the artificial increase of the wages of masters effected by the
+former guild-system was produced, to say the least, as much at the cost
+of the journeymen and apprentices as of the public. And if, on the other
+hand, it cannot be said that the most recent marked rise in wages, in so
+many countries, is merely the consequence of the extension of the
+parliamentary right of suffrage, certain it is that the two phenomena
+are very closely related, and that both are at once the effect and the
+cause of the intensified feeling of individuality and of the
+consciousness of constituting a class in the community of the lower
+strata of society.
+
+     [Footnote 170-1: At least where the supply of labor in
+     general surpasses the demand. Compare _J. S. Mill_,
+     Principles, II, ch. 14, 3d ed. The dangerous industries in
+     which lead, quicksilver, arsenic, etc. are manipulated or
+     employed, should be and can be better paid than they
+     actually are. In the Bavarian Palatinate, stone-cutters
+     rarely reach their 45th year; and yet their wages are very
+     low, because of the comparative over-population of the
+     country. (_Rau_, _Haussen's_ Archiv., N. T. X., 228.) But
+     the lowness of wages here is certainly and mainly caused by
+     the little thought the workmen themselves give to
+     considerations of health.]
+
+     [Footnote 170-2: The lower the rate of wages of any class
+     sinks, the more difficult it becomes for parents to devote
+     their children to another career.]
+
+     [Footnote 170-3: In Paris, 24,463 workmen with less than 3
+     francs daily; 157,216, with from 3 to 5; 10,393, with from 5
+     to 20 and even 3 to 5 francs. It is remarkable, however, how
+     uniform the average wages in the different trades is:
+     _vêtements_, 3.33 francs; _fils et tissus_, 3.42;
+     _boisellerie_, _vannerie_, 3.44; _garçons boulangers_,
+     _bouchers_ 3.50; _arts chimiques et céramiques_ 3.71;
+     _bâtiments_, 3.81; _carosserie_, 3.86; _peaux et cuirs_,
+     3.87; _ameublement_, 3.90; _articles de Paris_, 3.94;
+     _métaux communs,_ 3.98; _métaux précieux_, 4.17;
+     _imprimerie_, 4.18. (Journal des Economistes, Janv. 1853,
+     111.)]
+
+     [Footnote 170-4: How the Roman advocates were given to all
+     sorts of ostentation, and even borrowed costly rings in
+     order to raise their _honoraria_, see _Juvenal_, VII, 105,
+     ff.]
+
+     [Footnote 170-5: The salaries paid to the employees in the
+     office of the minister of finance in France and the United
+     States were as follows: to the porter, 1,500 and 3,734
+     francs; the lowest clerk, 1,000 to 1,800, and 5,420 francs;
+     to the head clerk, 3,200 to 3,600, and 8,672 francs; the
+     secretary general, 20,000 and 10,840 francs; to the
+     minister, 80,000 and 32,520 francs. (_Tocqueville_,
+     Démocratie aux États-Unis, II, 74.) In the treasury
+     department, at Washington, of 158 employees, only 6 received
+     less than $1,000 salary, but only 2 over $2,000. (_M.
+     Chevalier_, Lettres sur l'Amérique du Nord, II, 151, 456.)
+     Compare _Büsch_, Geldumlauf, IV, 34. In Russia, the wages of
+     the higher classes of laborers as compared with those paid
+     the commoner class is much higher than in Germany.
+     (_Kosegarten_, in _Haxthausen_, Studien, III, 583.) On the
+     other hand, in England, since 1850, the rate of wages for
+     unskilled labor has risen relatively more than any other.
+     (_Tooke_, Hist. of Prices, VI, 177.)]
+
+
+SECTION CLXXI.
+
+HISTORY OF THE WAGES OF COMMON LABOR.--IN THE LOWER STAGES OF
+CIVILIZATION.
+
+In very low stages of civilization, where there is scarcely any such
+thing as rent, and where capital is extremely rare, the wages of labor,
+notwithstanding its small amount absolutely speaking, must eat up the
+greatest part of the product.[171-1] With every further advance, the
+condition of the laboring class is modified, according as the natural
+decline in this relative amount of their wages is outweighed or
+counterbalanced, or neither outweighed nor counterbalanced, by the
+increase in the aggregate product; in other words, in the national
+income in general as compared with the number of workmen.
+
+     [Footnote 171-1: _Adam Smith_, Wealth of Nat., I, ch. 8.
+     Thus in the case of nations of hunters. The wages of free
+     laborers in Russia, at the beginning of this century, were
+     so high that mowers, in the vicinity of Moscow, received a
+     good half of the corn mowed by them, (_von Schlözer_,
+     Aufangsgründe, I, 65.) As a rule, the natural relation of
+     the three branches of income is here postponed by the
+     intervention of slavery. (§ 76, 155.) But, for instance,
+     since the negroes have been emancipated, in the southern
+     states of the American Union, it has become necessary to
+     promise them one-half of the cotton crop as wages, and for
+     the employer to run all the risk of a bad harvest. (_R.
+     Somers_, The Southern States since the War, 1871.) On the
+     wretched pay of domestic servants in the middle ages, see
+     _Grimm_, D. Rechtsalterth., 357.]
+
+
+SECTION CLXXII.
+
+HISTORY OF THE WAGES OF COMMON LABOR.--IN FLOURISHING TIMES.
+
+When, where a nation's economy[172-1] is growing and flourishing,
+capital increases more rapidly than population, there is a search for
+employment by capital still greater than the search for employment by
+labor. The consequence is, of course, a decline in the rate of interest,
+and a rise in the rate of the wages of labor, although the latter may be
+compelled to surrender a part of its increase to rent, which also rises.
+If simultaneously with these phenomena, there have been great advances
+made in national productive skill, especially in the cultivation of
+land; if, therefore, labor and the capital consumed have become more
+prolific, the condition of the laboring class is improved in a two-fold
+manner; the condition of capitalists needs, to say the least, grow no
+worse, and the increase of rent paid to landowners may be
+avoided.[172-2]
+
+This favorable development is most striking in the colonies of rich and
+highly civilized parent countries, where the labor, capital and social
+customs of an old and ripe civilization are found together with the
+overflowing natural forces inherent in a virgin soil, engaged in the
+work of economic production. Here the growth of national wealth is most
+rapid; and the rate of wages is here wont to be highest.[172-3] With the
+high rate of interest that obtains where capital is rapidly saved, and
+with the low price of land, it is not a matter of difficulty for good
+workmen to enter into the ranks of landowners and capitalists. In North
+America, and especially in the western part,[172-4] it is very
+frequently in the normal course of economic development for young people
+to begin to work on wages, then to work on their own account, and
+finally to become themselves employers of labor.
+
+     [Footnote 172-1: Compare _Hermann_, Staatswirths. Unters.,
+     241 ff.; _J. S. Mill_, Principles, ch. 3. As to how _Carey_
+     confounds the rise and fall of the productiveness of labor
+     with the rise and fall of wages, see _J. S. Mill's_ views in
+     _Lange_, 1866, 218 ff.]
+
+     [Footnote 172-2: In England, wages from 1400 to 1420,
+     estimated in produce, were much higher than from 1500 to
+     1533. (Statist. Journal, 1861, 544 ff.) Later, a quarter of
+     wheat was earned by day labor as follows: under Elizabeth,
+     in about 48 days; during the seventeenth century, in 43
+     days; between 1700 and 1766, in 32 days; between 1815 and
+     1848, in from 19 to at most 28¾ days. (_Hildebrand_, Nat.
+     Oek. der Gegenwart und Zukunft.) Since 1860, it has been
+     earned in about 14 days. About 1668, the wages paid to
+     English laborers and servants was one-third higher than
+     twenty years before. (_Sir J. Child_, Discourse on Trade, p.
+     43 of the French translation.) _D. Defoe_, Giving Alms no
+     Charity, 1704, draws a much more favorable picture of the
+     time next succeeding. _Adam Smith_, Wealth of Nat., I, ch.
+     8, shows how money-wages, in the eighteenth century, were
+     higher and the price of corn lower than in the seventeenth
+     century. Between 1737 and 1797, wages in most parts of
+     England, except in the immediate neighborhood of the great
+     cities, doubled. (_Eden_, I, 385.) In Scotland, about the
+     year 1817, the wages of married farm servants, expressed in
+     corn, were about 60 per cent. higher than in 1792.
+     (_Sinclair_, Grundgesetze des Ackerbaues, 105.)
+
+     _Boisguillebert_, Traité des Grains, I, 2, estimates the
+     wages in France, for agricultural laborers, at least from 7
+     to 8 sous, of present money, and at twice that amount in
+     harvest time. In 1697, laborers in Paris received from 40 to
+     50 sous. (Détail de la France, I, ch. 1, ch. 7.) _Vauban_
+     estimates wages in large cities at 22½-45 sous; for
+     country manual laborers, at 18 sous; for agricultural
+     laborers, 12-13-1/5 sous. (Project d'une Dime royale, 89
+     Daire.) On the other hand, _Chaptal_, De l'Industrie, Fr. I,
+     245, 1819, speaks of an average wage--25 sous. _Dureau de la
+     Malle_, Economie polit. des Romains, I, 151, allows
+     agricultural laborers, in 80 departments of France, only
+     20-25 sous. According to _Moreau de Joannés_, Journal des
+     Econ., Oct. 1850, the average wages of a French agricultural
+     family amounted per annum, in 1700, to 135 francs; in 1760,
+     to 126; in 1788, to 161; in 1813, to 400; in 1840, to 500
+     francs. While _A. Young_, Travels in France, 1787-89, speaks
+     of wages of 20 sous a day; _Peuchet_, Statist. élémentaire,
+     1805, 361, assumes it to be 30 sous, although the price of
+     corn was not much higher. Compare _Birkbeck_, Agricultural
+     Tour of France, 13, who is of opinion even, that French
+     laborers are better situated than the English (?). From 1830
+     to 1848, wages decreased about 30 per cent. (_L. Faucher_,
+     Revue des deux Mondes, Avril, 1848.) _Levasseur_, Histoire
+     des Classes ouvrières en France, II, 1858.
+
+     General data for whole countries are obviously very
+     doubtful. In Germany, for instance, economically active
+     places have witnessed an undoubted elevation of the
+     condition of the laboring classes. Thus, in Hamburg and
+     Lower Saxony, about the end of the eighteenth century
+     (_Büsch_, Geldumlauf, II, 56 ff.); while in Thuringia, in
+     1556, a _sümmer_ of rye was earned by 7 summer days' labor,
+     and in 1830 ff. by 8. (_Lotz_, Handbuch, I, 404.) In Hessen,
+     also, there has been but a very small increase in wages.
+     _(Hildebrand,_ Nat. Oek., I, 190.) According to _von der
+     Goltz_, Ländliche Arbeiterfrage, 1872, 84 seq., wages in the
+     country during the last twenty or thirty years have
+     increased on an average, 50 per cent. at least; in Bavaria
+     about 100 per cent.; in the Rhine province, male wages,
+     about 100; female wages, from about 75 to 100 per cent. The
+     masterly investigations of the wages of typesetters in Jena
+     and Halle by _Strasburger_ in _Hildebrand's_ Jahrb., 1872, I
+     ff., show that from 1717 to 1848, there was scarcely any
+     change in them. A million m's was paid for in 1717-40 with
+     26.93 Prussian _sheffels_ of rye; 1804-47 with from 24.80 to
+     28.80. Since then, a remarkable rise; so that in 1871, up to
+     November, 76.26 was reached. The prices of food, dwellings,
+     fuel, clothing, such as is in demand by such laborers, rose
+     between 1850 and 1860, 16.7 per cent., and the wages for
+     1,000 m's in the same period of time rose about 14.3 and
+     43.7 per cent. In the industrious manufacturing vicinity of
+     Moscow, wages in 1815 were four times as high as in 1670,
+     while the means of subsistence rose relatively much less.
+     (_Storch_, I, 203.)]
+
+     [Footnote 172-3: In the United States, the wages of
+     carpenters and masons, about the end of the last century,
+     were $0.62 and $0.75; in 1835, of the former from $1.12 to
+     $1.25, and for the latter from $1.37 to $1.50. In 1848, the
+     general wage was $0.75. The price of corn, in the meantime,
+     did not rise, and the price of manufactured articles was
+     much smaller. (_Carey_, Rate of Wages, 26 seq.; Past,
+     Present and Future, 154.) In New York, as far back as 1790,
+     wages were much higher (_Ebeling_, Geschichte und
+     Erdbeschreibung von Nordamerika, II, 917); and between 40
+     and 50 years ago, a journeyman mason might earn over 700
+     thalers per annum. Agricultural laborers, in 1835, got $9 a
+     month and their board, valued at $65 for the whole year. In
+     the vicinity of large cities, both were higher. (_Carey_,
+     91.) The condition of the factory hands, in Lowell, is a
+     very good one. In 1839, more than 100 of them had over
+     $1,000 each in the savings banks, and pianos at their mess
+     places. (_Boz_, Notes on America, 1842.) Most of them could
+     save $1.50 a week. _Colton_, in his Public Economy (1849),
+     says that a workman would consider himself in a bad way if
+     he could not save half of his wages. Compare _Chevalier_,
+     Lettres sur l'Amérique, II, 174, 122, 19; I, 221 ff.
+
+     Apprentices in the United States, in almost every instance,
+     begin to be paid wages as soon as their work begins to prove
+     useful. The work of half-grown children, who had not yet
+     left the parental roof, was so well paid that it was
+     estimated that a child earned for his parents, on the whole,
+     £100 more than he cost them. What an incentive to marriage!
+     (_Adam Smith_, Wealth of Nat., I, ch. 8.) In Canada,
+     agricultural laborers earn between £24 and £30 per annum and
+     their board. In and around Melbourne, agricultural laborers
+     got from 15 to 20 shillings a week and lodging; herdsmen,
+     £35 to £40 a year; girls, from £20 to £45 (Statist. Journal,
+     1872, 387 ff.); female cooks, from £35 to £40; male cooks,
+     from £52 to £156. In hotels, girls, from £30 to £35; female
+     cooks, from £50 to £100; domestic servants, £39 to £52;
+     carpenters, masons, etc., 10 shillings a day; the best
+     tailors, from 60 to 75 shillings a week; shoemakers, from 40
+     to 55 shillings; bakers, from 40 to 60 shillings a week.
+     (Statist. Journal, 1871, 396 seq.) In San Francisco, a short
+     time since, servant girls got $25 a month; Chinese, $1 a
+     day; common laborers, $2; skilled artisans, from $3 to $5.
+     (_Whymper_, Alaska, 299, 326.) The wages of a European
+     tradesman, in Rio Janeiro, was from I to 2 Spanish piasters
+     a day. (_Martius_, Reise, I, 131.) In the English West
+     Indies, a new-born negro was formerly worth £5. (_B.
+     Edwards_, History of the West Indies, II, 128.) The high
+     wages paid in young colonies are frequently made temporarily
+     still higher, by a large influx of capital in the shape of
+     money, brought by emigrants, and by government outlays.
+     Thus, in Van Diemen's land, for instance, in 1824,
+     carpenters, masons, etc. got 12 shillings a day; in 1830,
+     10; in 1838, only from 6 to 7, although between 1830 and
+     1838, the export trade of the island trebled while the
+     population scarcely doubled. (_Merivale_, On Colonies, II,
+     225.)]
+
+     [Footnote 172-4: As to how many workmen in the eastern part
+     of North America buy land in the west, and so threaten their
+     employers with immediate emigration, see _Brentano_,
+     Arbeitergilden, II, 131. However, in Massachusetts, women's
+     wages are in many instances so low that, considering the
+     dearness of the means of subsistence, it is almost
+     impossible to understand how they exist. (Statist. Journal,
+     1872, 236 ff.)]
+
+
+SECTION CLXXIII.
+
+HISTORY OF THE WAGES OF COMMON LABOR.--IN FLOURISHING NATIONS.
+
+A permanently[173-1] high rate of wages[173-2] is, both as cause and
+effect, very intimately connected with a flourishing condition of
+national life. It proves on the one hand, great productiveness of the
+public economy of the people generally: prudence, self-respect and
+self-control, even of the lowest classes, virtues, which, however, are
+found, on the whole, only where political liberty exists, and where the
+lowest classes are rightly valued by the higher.[173-3] On the other
+hand, it produces a condition of the great majority of that portion of
+the population who have to support themselves on the wages they receive,
+worthy of human beings, a condition in which they can educate their
+children, enjoy the present and provide for the future. Equality before
+the law and participation in the affairs of government are empty
+phrases, and even tend to inflame the passions, where the rate of wages
+is not high. When the lower classes are dissatisfied, in highly
+civilized countries, with the sensitiveness and mobility of the whole
+national life, there can be no certainty of the freedom of the middle
+classes or of the rule of the upper. Here, in other respects, also, the
+philanthropy of employers harmonizes remarkably well with their
+reasonable self-interest. According to § 40, only the well-paid workman
+can accomplish anything really good, just as, conversely, only the good
+workman is on the whole, and in the long run, well paid. This suggests
+the physiological law, that where muscular activity is great, nutrition
+must be great, likewise; and the rapid waste and repair of tissues
+strengthens the muscles and gives tone to the whole physical life. With
+a correct insight into the relations of things, antiquity described its
+greatest worker, Herakles, as a great eater also. A well-paid workman,
+who costs and accomplishes as much in a day as two bad ones, is cheaper
+than they. He works much more cheerfully and faithfully, is, hence, more
+easily superintended, is less frequently sick, and later
+decrepid.[173-4] His childhood costs less, and his burial is not so
+expensive. In cases of need, he can more easily bear the weight of
+taxation or a temporary lowering of wages.[173-5] We might say of the
+granting of holidays and of evening leisure something similar to what we
+have said of the rate of wages. They are indispensable requisites to the
+development of a desirable individuality in the working classes; and
+when used for that purpose are certainly no detriment to the product of
+labor or to employers.[173-6] [173-7]
+
+In consideration of all the blessings attending a high rate of wages, we
+may well be induced to put up with a certain and frequently inconvenient
+external defiance of the lower classes which is wont to accompany
+it.[173-8] It teaches the upper classes many a moral lesson, and is
+surely a lesser sin in the lower, than the cowardly, malicious crimes of
+the oppressed. When wages are so low that they have to be supplemented
+by begging or public charity, the effect on morality is the same as when
+government officials, who cannot live on their salaries, resort to
+bribery or embezzlement.[173-9] [173-10]
+
+     [Footnote 173-1: A merely momentary rise in wages might be
+     the result of a great calamity, destructive of human life,
+     and might seduce workmen not intellectually prepared for it
+     into idleness. Compare _von Taube_, Beschreib. von Slavonien
+     etc., II, § 4.]
+
+     [Footnote 173-2: On the necessity of _free_ wages, that is
+     of an excess over and above the costs of support and of
+     maintaining one's position, see _Roesler_, Grandsätze, 394.]
+
+     [Footnote 173-3: _Dans aucune histoire on ne rencontre un
+     seul trait, qui prouve que l'aisance du peuple par le
+     travail a nui à son obéissance, (Forbonnais.)_ This is true
+     only of well governed countries. When, in England, about the
+     middle of the eighteenth century, a great improvement took
+     place in the condition of the laboring classes,
+     _Postlethwayt_ (Great Britain's commercial Interests, 1759)
+     was one of the first to recognize its general beneficial
+     character; also _Th. Mortimer_. (Elements of Commerce,
+     Politics and Finance, 1774, 82 ff.) _Benjamin Franklin_,
+     before the American revolution, was of opinion that high
+     wages made people lazy. (On the Price of Corn, 1776. On the
+     laboring Poor, 1768.) He afterwards, however, acknowledged
+     its generally good effect, and that even the products of
+     labor might be cheapened thereby. (On the Augmentation of
+     Wages, which will be occasioned in Europe by the American
+     Revolution. Works II, 435 ff.) See further, _Paoletti_, Veri
+     Mezzi di render felici le Società, ch. 15; _Ricardo_,
+     Principles, ch. 5; _Th. Brassey_, on Work and Wages, 1872.
+     _Umpfenbach_, Nat. Oek, 181, calls the costliness of labor to
+     the purchaser of labor, "givers' wages," their purchasing
+     power to the laborer himself, "receivers' wages," and is of
+     opinion, that as civilization advances, the former declines
+     and the latter rises.]
+
+     [Footnote 173-4: When in the department of the Tarn flesh
+     food was introduced among journeymen smiths instead of mere
+     vegetable diet, the sanitary improvement that followed was
+     so great that the number of days lost by sickness in a year
+     decreased from 15 to 3. (_Moleschott_.)]
+
+     [Footnote 173-5: In high stages of civilization, it is
+     always more profitable, the result being the same, to keep a
+     few well fed cattle than many poorly fed. (_Roscher_,
+     Nationalök. d. Ackerbaues, § 179.) _Infra_, § 231. When the
+     drainage of Oxford street in London was made while wages
+     were rising, it happened that the cubic foot of masonry work
+     at 10 shillings per day was cheaper than it was formerly at
+     6 shillings per day. (_Brassey_, 68 ff.) _Senior_ calls it
+     an absurdity to consider the high wages paid in England as
+     an obstacle in the way of its successful competition with
+     other countries. Rather would he consider it as the
+     necessary result of the excellence of English labor. Thus,
+     in his Lectures on the mercantile Theory of Wealth, p. 76,
+     he says that if the English employ a part of their labor
+     injudiciously, they must pay it not in proportion to what it
+     really accomplishes, but to what it might do if well
+     employed. If a man calls in a doctor to cut his hair, he
+     must pay him as a doctor. If he puts a man to throwing silk
+     who might earn 3 ounces of silver a week spinning cotton, he
+     must pay him weekly 3 ounces of silver, although he may
+     deliver no more silk within that time than an Italian who
+     gets only 1½ ounces.]
+
+     [Footnote 173-6: Norfolk country workmen never worked more
+     than 10 hours a day except in harvest and seed time. But a
+     plowman there accomplished as much in 5 days as another in
+     8. (_Marshall_, Rural Economy of N., 138.) In southwestern
+     Germany, the country working day is from 2 to 4 hours
+     shorter than in the northeast, and yet just as much is
+     accomplished in the former quarter. (_von der Goltz_, Ländl.
+     Arbeiterfrage, 88, 131.) Thus the coal diggers of South
+     Wales work 12 hours a day, those of Northumberland, 7; and
+     yet the same achievement is 25 per cent. dearer in case of
+     the former. In the construction of the Paris-Rouen Railroad,
+     the English achieved more than the French, although the
+     former worked from 6 A. M. to 5:30 P. M., and the latter
+     from 5 A. M. to 7 P. M. (_Brassey_, 144 ff.) Examples from
+     English manufactories in _Marx_, Kapital, I, 401 seq. In an
+     English factory the hours worked were 12, and afterwards,
+     11. This caused the number of attendants of the evening
+     school to grow from 27 to 98. (_Horner._) _Dollfuss_, in
+     Mühlhausen, reduced the number of hours worked from 12 to
+     11, and let the wages remain the same as before. The result
+     was besides a great saving made in fuel and light, a surplus
+     product of at least 1-2/3 per cent. Something similar
+     observed by _M. Chevalier_, Cours, I, 151.
+
+     Hence _J. Möser_, Patr. Ph., III, 40, desired, on this
+     account, that work in the evening should be prohibited by
+     law. In England, not only the moral necessity, but also the
+     economic general utility of leisure time of workmen has been
+     defended, among others by _Postlethwayt_, Dictionary of
+     Trade and Commerce, I, prelim. Discourse, 1751. A beautiful
+     law, V Moses 24, 15. Only, care must be taken not to go to
+     the other extreme, which is still more detrimental to
+     personality. The North American ideal of 8 hours a day for
+     work, 8 for eating, sleeping, etc., and 8 for leisure, would
+     be injurious except to workmen intellectually very active.
+     But the provision to be met with in many states of the Union
+     and in the arsenal employ of the government, that in case of
+     doubt, the work day is to be tacitly assumed as of 8 hours,
+     has, it is said, correspondingly lowered wages. See _supra_,
+     § 168.]
+
+     [Footnote 173-7: In India, where the institution of caste is
+     found, nearly half the year is made up of feast days, while
+     in rationalistic China there is no Sunday and very few
+     general holidays. (_Klemm_, A. Kulturgeschicht. VI, 425.
+     _Wray_, The practical Sugar Planter, 1849.) The
+     Judaic-Christian sanctification of the seventh day is a
+     happy medium between these two extremes. Recuperation and
+     collectedness get their due without its costing too much to
+     action. _Ora et labora!_ Compare _Sismondi_, N. P. II, ch.
+     5. Which is best, traveling on foot, to drag along all the
+     time, or to walk decently and rest properly between times?
+     The rest of Sunday, even leaving the work of recuperation
+     and edification out of account, is necessary in the
+     interests of the family and of cleanliness. The French
+     _decadis_ accomplished materially even too little: _ils ont
+     à faire à deux ennemis, qui ne cèderont pas, la barbe et la
+     chemise blanche_. (_B. Constant._) Hence, an English prize
+     essay on the material advantages of Sunday found 1,045
+     competitors among English working men. (Tübinger Zeitschr.,
+     1851, 363.)]
+
+     [Footnote 173-8: Thus _Parkinson_, A Tour in America,
+     complains that with four servants in the house, he was
+     obliged to polish his own shoes, and with his wife and
+     children to milk the cows, while his people were still
+     asleep. Strange servants bringing a message, come in with
+     their hats on. All domestics are called mister or misses.
+     Servant maids are called "helps," and their masters,
+     "employers." If a person at a hotel asks for a laundress, he
+     is answered: "Yes, man, I will get a lady to wash your
+     clothes." Similarly in _Fowler_, Lights and Shadows,...
+     three Years' Experience in Australia. But, at the same time,
+     it is remarkable how seldom a native born white American
+     accepts a fee. On the other hand, Russia is the classic land
+     of fees. There is a popular story in that country to the
+     effect that when God divided the earth among the different
+     nations, they were all satisfied except the Russians, who
+     begged a little drink-money or fee in addition, (_von
+     Haxthausen_, Studien, I, 70.) Similarly in Egypt. (_Ebers_,
+     Durch Gosen zum Sinai, 1873, 31 seq.) The system of feeing
+     servants holds a middle place between the modern system of
+     paying for everything lawfully and the medieval system in
+     which people either rob, donate or beg.]
+
+     [Footnote 173-9: Compare _Garve_ in _Macfarlan_, 90. The
+     wages of English wool workers in 1831 amounted to:
+
+                                 _Tax per capita of the_
+                                 _population for_
+        _In_                     _support of the poor._
+     Leeds,       22---22½s.           5s. 7d.
+     Gloucester,  13---15¼s.           8s. 8d.
+     Somerset,    16¾--19¾s.           8s. 9d.
+     Wilts,       13-7/12--15-5/12s.  16s. 6d.
+
+     _Ure_, Philosophy of Manufactures, 476. After an
+     enthusiastic eulogy of high wages, _McCulloch_ remarks
+     especially that the English poor rates cost more than if the
+     laborers were obliged to provide for themselves by getting
+     higher wages. (Principles, III, 7.) Sad results of the
+     system which came into vogue in the South of England in
+     1795, to supplement wages according to the price of corn and
+     the number of children. Previously the laboring classes
+     married only after the age of 25 and even at 35, and not
+     until they had saved from £40 to £50. After the above
+     mentioned system was adopted, even minors married. (Edinburg
+     Review, LIII, 4, 7.)]
+
+     [Footnote 173-10: _Von Thünen_, Isolirte Staat., II, 1, 154,
+     gives the following formula as the expression of ideal
+     wages: sqrt(ap), in which a = the necessary requirement for
+     maintenance of the workmen, and p = the aggregate product of
+     his labor. _von Thünen_ attached so much importance to this
+     formula that he had it engraved on his tomb-stone. But even
+     if it were possible to reduce capital-generating labor and
+     wage-labor to a common denominator, it would not be possible
+     nor equitable to maintain the same dividing measure when
+     capital and labor contributed in very different amounts to
+     the production of the common product. An artist, for
+     instance, who could make costly vessels out of very cheap
+     clay and with cheap fuel would get too little by _von
+     Thünen's_ law; a mechanic who used a very efficient and
+     costly machine, too much. The fundamental defect in his
+     theory, _von Thünen_ himself seems to have obscurely felt.
+     Compare the letter in his Lebensbeschreibung, 1868, 239 and
+     _Roscher_, Geschichte der Nat. Oek., in Deutschland, 895 ff.]
+
+
+SECTION CLXXIV.
+
+HISTORY OF THE WAGES OF COMMON LABOR.--IN DECLINING COUNTRIES AND TIMES.
+
+When, circumstances being otherwise unaltered, the aggregate income of a
+nation decreases, the wages of labor are wont to be lower in proportion
+as the points above mentioned, and which are unfavorable to the laborer
+in his competition, appear.[174-1] The worse distribution, also, of the
+national resources, when, instead of a numerous middle class, a few
+over-rich people monopolize all that is to be possessed, diminishes the
+wages of common labor and thus again produces a worse distribution than
+before.[174-2] In a similar way, wages must decline when the mode of
+life of the laboring class, or the quality of their work, has
+deteriorated. Some of these causes may exist transitorily even among
+otherwise flourishing nations; as, for instance, in war times,[174-3] or
+when population for a while grows more rapidly than national wealth. But
+among nations universally declining, they are all wont to meet, and one
+strengthens the other.[174-4] One of the saddest symptoms of such a
+condition is the low value here put upon the life and strength of
+workmen. The cheapness of labor has indeed a charm for enterprising
+spirits, which induces them to employ human labor even where machinery,
+beasts, etc., would economically be better adapted to the performance of
+the work.[174-5] Day-laborers are, on this account, more profitable to
+persons of enterprise (_Unternehmer_=_undertaker_) because they can more
+easily rid themselves of them. But such egotistic calculation should
+have no place even in the case of actual slaves.[174-6]
+
+Besides, it not unfrequently happens, that the laboring class seek to
+oppose the decline of wages by increasing their industry, shortening
+their holidays and leisure, and by drawing their wives and children into
+their work. This may, under certain circumstances, result in an increase
+of the national income, and thus constitute a transition to the
+restoration of high wages, especially if beforehand there was reason to
+complain of the idleness of the working class. But if the other
+circumstances of competition are unfavorable to the working class, if
+especially they used their personally increased income to add to the
+population, it would not be long before they fell back to their previous
+state. In such case, the consequence is, that the same quantity of labor
+has become cheaper; that all permanent profit falls to the capitalists
+and landowners, and all that remains to the laboring class is only
+greater toil, a sadder home-life, and sadder children. The danger of
+such an issue is all the greater, because few things so much contribute
+to reckless marriages and the thoughtless procreation of children, as
+the industrial coöperation of wife and child.[174-7] [174-8]
+
+     [Footnote 174-1: Hence _Adam Smith_ says that it is not the
+     richest countries in which wages are highest, but those
+     which are becoming rich most rapidly.]
+
+     [Footnote 174-2: The classic lands of low wages and
+     pauperism are especially the East Indies and China. A
+     minister of Kienlong was punished after he had extorted
+     about 20,000,000 thalers. (_Barrow_, II, 149.) In the
+     confiscation of the well known _Keschen_, the authorities,
+     according to their own accounts, found 682 pounds of gold
+     and more than 6,000,000 pounds in silver. Considering the
+     colossal banquets of the rich, embracing several hundred
+     courses, of which _Meyen_, Reise um die Erde, II, 390,
+     describes an example, the wretched food of the poor is
+     doubly striking. Count _Görtz_ relates that in Canton, rats
+     and serpents are regularly exposed for sale. (Reise, 445.)
+     The lowness of wages appears from the fact--one of
+     many--that servants frequently get nothing but their board.
+     (_Haussmann_, Voyage en Chine, etc.) In the cities,
+     tradesmen with their tools run hither and thither about the
+     streets begging for employment in the most imploring manner.
+     Thousands live all their lives on rafts. Numberless
+     instances of infanticide from want of food, (§ 251.) The
+     influence of these circumstances on the morality of the
+     people is best illustrated by the fact that _Keschen_, when
+     he was ambassador to Thibet, preferred to confide his newly
+     collected treasures to the escort of the French missionaries
+     he persecuted rather than to the mandarins named by himself,
+     so much more highly did he estimate European than Chinese
+     honesty. (Edinburg Rev., 1851, 425 ff.) In the Chinese
+     picture-writing, the word happiness was designated by a
+     mouth well corked with rice. Chinese statisticians speak of
+     mouths (_Maul_) where ours treat of the number of heads or
+     souls. _Ritter_, Erdkunde, II, 1060. More favorable accounts
+     in _Plath_, Münch. Akad., 1873, 784, 788 seq.
+
+     In the East Indies, a great many of the rejected castes live
+     on carrion, dead fish, noxious insects, and even the middle
+     class find wheat flour too dear, and therefore mix it with
+     peas, etc. (_Ritter_, VI, 1143.) It is said that Bengal, in
+     the famine of 1770, lost more than one-third of its
+     inhabitants. (_Mill_, History of British India, III, 432.)
+     Eloquent description of misery in _Rickard_, India, or Facts
+     submitted to illustrate the Character and Condition of the
+     native Inhabitants, II, London, 1832. An immense number of
+     badly paid servants of whom it may however be said that each
+     one accomplishes very little. The Pindaries may pass for an
+     extreme of Indian pauperism, corresponding to the
+     pirate-calamity during the later Roman Republic. (Quarterly
+     Review, XVIII, 466 ff.; _Ritter_, VI, 394 ff.)]
+
+     [Footnote 174-3: Thus, in England, during the last great
+     war, wages rose less than the price of corn, and sank less
+     after it. About 1810, wages were nearly 100 per cent. higher
+     than in 1767; but, on the other hand, the price of wheat,
+     115; of meat, 146; of butter, 130, and of cheese, 153 per
+     cent. (Edinburg Rev., XL., 28.) If it has some times been
+     observed that crime, communistic machinations and
+     revolutionary movements grow less frequent in times of war,
+     the fact is not to be ascribed necessarily to a better
+     condition of the laboring class. It might possibly be the
+     consequence of the strongest and wildest elements of the
+     laboring class finding some other career.]
+
+     [Footnote 174-4: _Adam Smith_, loc. cit., on this point
+     describes China as a stationary country (according to _R.
+     Fortune_, Wanderings in China, 1847, 9, a decided decline
+     has been noticeable there for a long time), and Bengal as a
+     declining one. On the condition of wages among the Romans,
+     _Juvenal_, III, 21 ff., is one of the principal sources.
+     Hence the desire to emigrate because honest labor had no
+     longer any foothold (23 ff.). Poor dwellings of the laboring
+     class, dark, exposed to danger from fire (166, 190 ff.,
+     225), and yet comparatively dear (223 seq.). Numerous crowds
+     of robbers and beggars (302 ff.; IV, 116 ff.; V, 8; XIV,
+     134). On beggary, see _Seneca_, Controv., V, 33. De
+     Element., II, 6. De Vita beata, 25 ff. _Martial_, V, 81,
+     XIV, 1, complains of the absence of outlook among the poorer
+     classes. _Horace_, too, is rich in passages which might be
+     appropriately cited in this connection. Characteristic
+     question of the nabobs, in _Petron._, 48, 5: What on earth
+     is that thing called a pauper?]
+
+     [Footnote 174-5: Thus, in China, the East Indies, etc.,
+     people travel in palanquins borne by men; in a multitude of
+     cases, Chinese commodities are carried in wheelbarrows; and
+     a great many roads are constructed, in reference not to
+     wagons, properly so-called, but to this species of vehicle.
+     How heartless the Chinese, who, before they save a drowning
+     man, first higgle about the reward, and take pleasure in
+     pestilence, famine, etc., because those who survive profit
+     by them. See _Finlaison_, Journey of the Mission to Siam,
+     1826, 62 ff.]
+
+     [Footnote 174-6: Hence _Menander_ (342-290 before Christ)
+     says it is better to be the slave of a good master than to
+     live wretched in freedom. (_Stobœus_, Flor., 62, § 7.
+     _Meinecke_, Fr. com. Gr., IV, 274.) _Libanios_, too, (Tom.,
+     483, Reiske), in his "Blame of Poverty," represents slavery
+     as better cared for, and freer from worry. Horrible
+     contracts made even in Cæsar's time, from want, by freemen,
+     to become gladiator-slaves. _Cicero_, pro Roscio, Am. 6;
+     _Horat._, Serm., II, 7, 58 ff.; _Petron._, 117; _Seneca_,
+     Epist., 37. And so by Justinian, cases of declined freedom
+     are supposed. (L. 15, _Justin._, Cod., VII, 2.) "_Dans une
+     armée on estime bien moins un pionnier, qu'un cheval de
+     caisson, parce que le cheval est fort cher, et qu'on a le
+     pionier pour rien. La suppression de l'esclavage a fait
+     passer ce calcul de la guerre dans la vie commune._"
+     (_Linguet._)]
+
+     [Footnote 174-7: _Sismondi_ is guilty, however, of a
+     philanthropic exaggeration when he says that the labor of
+     children is always fruitless to the laboring classes. (R. P.
+     I., 235.)]
+
+     [Footnote 174-8: The bringing into juxtaposition of the
+     rates of wages in different countries is doubtless one of
+     the most important objects of comparative statistics. Only
+     it is necessary not to confine it to the money amount of
+     wages, but to make it embrace the prices of the principal
+     means of subsistence. Thus, in France, before the outbreak
+     of the French Revolution, a French workman earned a cwt. of
+     bread on an average of 10.5 days; one of meat in 36.8; an
+     English workman, in 10.4 and 25.3 days. (_A. Young._) In the
+     interior of Russia, a female weaver earns, in a day, almost
+     one Prussian _scheffel_ of rye, in Bielefeld, only about
+     one-tenth of a _scheffel_; a table-cloth weaver, in the
+     former place, 18 silver groschens, while the _scheffel_
+     costs from 12 to 15 silver groschens. (_von Haxthausen_,
+     Studien, I, 119, 170.) According to _Humboldt_, the
+     money-wages paid in Mexico were twice as high, and the price
+     of corn two-thirds as dear, as in France. (N. Espagne, IV,
+     9.) According to _Rau_, Lehrbuch, I, § 180, the procuration
+     of the following means of subsistence required in day labor
+     in:
+
+          ==============+============+=========+==========
+                        |            |         |         |
+                        |_Manchester.|_Hanover.|_Hanover.|
+                        |            |         |         |
+                        |  1810-20_  |  1700_  |  1827_  |
+          --------------+------------+---------+----------
+          Cwt. beef,    |   26       |   33    |   35    |
+           "   potatoes,|    1.85    |   ----  |   ----  |
+           "   wheat,   |    5.5     |   ----  |   ----  |
+           "   rye,     |   ----     |    6.5  |    8.7  |
+           "   butter,  |   42.3     |   87    |   64    |
+           "   sugar,   |   96       |  181    |  128    |
+          ==============+============+=========+==========
+                        |_Upper  |             |         |
+                        |Canada. |_Brandenburg.| Gratz.  |
+                        |        |             |         |
+                        | 1830_  |  1820-33_   |1826-45_ |
+          --------------|--------+-------------+----------
+          Cwt. beef,    |  6.6   |     34      |  36     |
+           "   potatoes,| ----   |      1      |   2.68  |
+           "   wheat,   |  2     |      7.6    |  11     |
+           "   rye,     |  1.5   |      5.4    |   8.6   |
+           "   butter,  | 22     |     83      |  84     |
+           "   sugar,   | ----   |     ----    |  ----   |
+          ==============+============+=========+==========
+
+     Estimated in silver, the East Indian laborer earns from £1
+     to £2 a year; the English, £9 to £15; the North American,
+     £12 to £20. (_Senior._) _Hildebrand_, Nat-Oek., I, 195 ff.,
+     assures us that the average rate of wages in Germany, in
+     1848, amounted to 400 thalers a year; in England, to 300
+     thalers; and that the prices of the means of subsistence in
+     the latter country were 1½ times higher than in the
+     former. _Engel_, Ueber die arbeitenden Klassen in England,
+     1845, shows only the dark side of a real picture, and is
+     silent on the other, and is well corrected by _Hildebrand_,
+     I, 170 ff. Excellent statistics in _Sir F. M. Eden_, State
+     of the Poor, I, 491-589. On the more recent times, compare
+     the Edinburgh Review, April, 1851, April, 1862; Quarterly
+     Rev., Oct., 1859, July, 1860. _Ludlow_ and _Jones_, loc.
+     cit. On the situation in France, see _Blanqui's_ report in
+     the Mémoires de l'Académie des Sciences morales et
+     politiques, II, 7. _Leplay_, Les Ouvriers des deux Mondes,
+     II, 1858. Very important are the "Reports from Her Majesty's
+     diplomatic and consular Agents abroad respecting the
+     Condition of the industrial Classes, and the Purchase-power
+     of money in foreign Countries." (1871.)]
+
+
+SECTION CLXXV.
+
+WAGE POLICY.--SET PRICE OF LABOR.
+
+Among the artificial means employed to alter the existing rate of wages,
+we may mention first, a rate of wages fixed by governmental authority.
+These have, in many places, constituted an intermediate step between
+serfdom and the free wage-system. In most cases, this measure was
+intended in the interest of the upper classes to prevent the lower
+obtaining the full advantage of their freedom under the favoring
+circumstances of competition.[175-1] In later times, another cause has
+frequently been added to this, viz.: by diminishing the cost of
+production to increase foreign sales. (See § 106.) In the higher stages
+of civilization, nations will scarcely look with favor on the diminution
+of the rightful, for the most part, individually small gains of the most
+numerous, the poorest and most care-worn class of the community.[175-2]
+The purchasers of labor would, in consequence, be badly served, since
+they would have lost the possibility of obtaining better workmen by
+paying higher wages. Hence, there would, probably, be none but mediocre
+labor to be found.[175-3] On the other hand, fixed rates which keep
+within the limits described in § 114 are, under certain circumstances,
+desirable. This is especially the case where the purchasers of labor on
+the one hand, and the buyers of labor on the other, have formed
+themselves into united groups, and where the rate fixed is only in the
+nature a treaty of peace under governmental sanction, when a war over
+prices had either broken out actually or there was danger to fear that
+one would break out. It must not be forgotten, that thus far common
+labor has scarcely had any thing similar to an "exchange."[175-4]
+
+     [Footnote 175-1: The plague known as the black death of
+     1348, which devastated the greater part of Europe, was
+     followed by many complaints on the part of the buyers of
+     labor, of the cupidity and malicious conspiracies of the
+     working classes. (See _supra_ § 160.) Fixed rates of wages
+     under Peter the Cruel of Castile, 1351; contemporaneously in
+     France, Ordonnances, II, 350, and in England, 25 Edw. III,
+     c. 2; 37 Edw. III, c. 3. In France, the wages of a thresher
+     were fixed at the one-twentieth or the one-thirtieth of a
+     _scheffel_, while in present Saxony it is from
+     one-fourteenth to one-twelfth. In England, under the same
+     ruler, who had seen his castle at Windsor built, not by day
+     laborers for wages, but by vassal masons, vassal carpenters,
+     etc., whom he got together from all parts of the kingdom.
+     That the rates might not be evaded, the succeeding king
+     forbade both the leaving of agriculture for industry and
+     change of domicile without the consent of a justice of the
+     peace. (12 Richard II., c. 3.) All such provisions were
+     little heeded in the 16th century. (_Rogers_, the Statist.
+     Journal, 1861, 544 ff.)
+
+     Fixed rates of wages under Henry VII. and Henry VIII., in
+     the interest of workmen. (_Gneist_, Verwaltungsrecht, II,
+     Aufl., 461 ff.) The fact that in 5 Elizabeth, c. 4, another
+     attempt was made to fix the rate of wages by governmental
+     provisions, in which the person paying more than the sum
+     fixed was threatened with 10 days' imprisonment, and the
+     person receiving less with 12, was in part akin to the
+     English poor laws. If a poor man had the right to be
+     eventually employed and supported by the community, it was,
+     of course, necessary that the justice of the peace should be
+     able to determine at what wages anybody should be prepared
+     to work before he could say: I can find no work. Extended by
+     2 James I., c. 6, to all kinds of work for which wages were
+     paid. (_Eden_, State of the Poor, V, 123 ff., 140.) The
+     buyers of labor in the eighteenth century frequently
+     complained that these fixed wages were more to the advantage
+     of workmen than of their masters. (_Brentano_, English
+     Guilds., ed. by _Toulmin Smith_, 1870, Prelim. CXCI.)
+
+     In Germany, the depopulation caused by the Thirty Years' War
+     explains why, before and after the peace of Westphalia, so
+     many diets were concerned with fixing the rate of wages of
+     servants. Compare _Spittler_, Gesch., Hanovers, II, 175.
+     Among the most recent instances of English fixed rates of
+     wages, is 8 George III., for London tailors, and the
+     Spitalfields Act of 1773, for silk weavers who had, a short
+     time before, revolted. Also in New South Wales, about the
+     end of the last century, on account of the high rate of
+     colonial wages. (_Collins_, Account of the English Colonies
+     of New South Wales, 1798.) Later, _Mortimer_, Elements of
+     Politics, Commerce and Finance, 1174, 72, maintains fixed
+     rates of wages to be necessary. In Germany the imperial
+     decree of 1830, tit., 24, and again the ordinance of Sept.
+     4, 1871, provide that each magistrate shall fix the rate of
+     wages in his own district. _Chr. Wolf_, Vernunftige Gedanken
+     vom gesellsch. Leben der Menschen, 1721, § 487, would have
+     the rates so fixed that the laborers might live decently and
+     work with pleasure.]
+
+     [Footnote 175-2: Proposal for a fixed sale of wages in the
+     protocols of the Chamber of Lords of Nassau, 1821, 12.]
+
+     [Footnote 175-3: The Spitalfields Act was repealed in 1824,
+     for the reason that the manufacturers themselves attributed
+     the stationary condition of their industries for a hundred
+     years to the fact that they were hampered by that act.
+     _Ricardo's_ and _Huskisson's_ prophecies, on this occasion,
+     fulfilled by the great impulse which the English silk
+     industries soon afterwards received.]
+
+     [Footnote 175-4: Compare _Brentano_, Arbeitergilden der
+     Gegenwart, II, 288. However, fixed rates of wages equitably
+     arranged, in the establishment of which neither party has
+     been given an advantage over the other, have continued to
+     exist much longer than our distrustful and novelty-loving
+     age would think possible. Thus compositors' wages in London,
+     from 1785 to 1800, from 1800 to 1810, from 1810 to 1816, and
+     from 1816 to 1866, remained unaltered; those of London ship
+     builders, from 1824 to 1867; of London builders, from 1834
+     to 1853, and from 1853 to 1865. (_Brentano_ II, 213. Compare
+     II, 250, 267 ff.)]
+
+
+SECTION CLXXVI.
+
+WAGES-POLICY.--STRIKES.
+
+Where the wages-receiving class feel themselves to be a special class,
+_vis-a-vis_ of the purchasers of their labor, they have frequently
+endeavored, by the preconcerted suspension of labor upon a large scale,
+to force their masters to pay them higher wages, or grant them some
+other advantage.[176-1] It is hard to say whether such strikes have more
+frequently failed or succeeded.[176-2]
+
+As a rule, a war over prices, carried on by such means, and without
+force on either side, must generally issue in the victory of the richer
+purchasers of labor.[176-3] The latter require the uninterrupted
+continuation of labor for their convenience and profit; but the workmen
+need it to live. It is but seldom that the workmen will be in a
+condition to stop work for more than a few months, without feeling the
+sting of hunger. The purchaser of labor can live longer on his capital;
+and the victory here belongs to the party who, in the struggle, holds
+out longest. Hence, a strike that lasts more than six weeks may, for
+that reason alone, be considered a failure. The employers of labor, on
+account of their smaller number and greater education, make their
+counter-coalition much more secret and effective. How many instances
+there are in which labor-saving machines have come into use more rapidly
+than they otherwise would have come but for the influence of these
+coalitions![176-4]
+
+On the other hand, it cannot be ignored that a host of workmen, by means
+of an organization which provides them with a unity of will, such as the
+heads of great enterprises naturally possess, must become much better
+skilled in carrying on a struggle for higher wages. Where wages in
+general tend to rise, but by force of custom, which is specially
+powerful here (§ 170), are kept below their natural level, a strike may
+very soon attain its end. And workmen are all the more to be wished
+God-speed here in proportion as employers are slow to decide of their
+own motion upon raising wages, and where, under certain
+circumstances,[176-5] a single cold-hearted master might force all his
+competitors to keep wages down. If even the entire working class should
+follow the example of the strikers, so that all commodities, in so far
+as they are products of labor, should grow dearer to an extent
+corresponding to the rise in wages, there would still remain an
+improvement of the condition of the working class at the cost of the
+interest paid on capital and the profits of enterprise. It is, of
+course, otherwise with the struggle of workmen against the natural
+conditions which determine the rate of their wages (§§ 161-166) in which
+they might, in turbulent times, possibly succeed[176-6] temporarily, but
+would, in the long run, have to fail.[176-7]
+
+The working class will be best fortified in such a struggle for higher
+wages when their organization is a permanent one, and when they have
+taken care, during good times, to collect a certain amount of capital to
+protect their members, during their cessation from work, against acute
+want. This is the object of the trades-unions as they have grown up in
+England, especially since the total decline of the guild system and of
+governmental provisions relating to apprentices, fixed rates of
+wages[176-8] etc. But it cannot be denied that these unions, although
+democratic in form, often exercise a very despotic sway over their
+members;[176-9] that they have, so far as the employers of labor are
+concerned, and the non-union laborers, gone back to a number of
+measures, outgrowths of the guild and embargo systems, which it was
+fondly hoped had been forever banished by the freedom of
+industry.[176-10] What many of the friends of this system hope it may
+accomplish in the future, viz.: regulate the whole relation between
+capital and labor, and thus, on the whole, control the entire public
+economy of a people,[176-11] is, fortunately, all the more certainly a
+chimera, as any national or universal approximation to this end would be
+the most efficacious way to compel employers of labor to the formation
+of corresponding and probably far superior opposing unions.
+Notwithstanding this, however, I do not doubt that the recent
+development of trades-unions in England is both a cause and an effect of
+the rise in wages in the branches of industry in question, as well as of
+the moral elevation of the condition of the working class which has
+simultaneously taken place.[176-12] The mere possibility of a strike is
+of itself calculated, in the determination of the rate of wages, to
+procure for the equitable purchaser of labor the desirable preponderance
+over the inequitable.[176-13]
+
+     [Footnote 176-1: Even _Boisguillebert_, Traité des Grains,
+     was acquainted with instances of this kind in which from 600
+     to 800 workmen simultaneously left their masters. There are
+     much earlier instances in Italy. Thus, in Sienna, in 1381
+     and 1384, in which the nobility sided with the workmen.
+     (Rerum Ital. Scriptores, XV, 224, 294.) Strikes of
+     journeymen began to be much more frequent in Germany in the
+     guilds, from the time of the prospect of their becoming
+     masters themselves, and of their living in the family of the
+     masters had decreased. On similar strikes at Spires, in
+     1351, at Hagenau in 1409, and Mainz in 1423, see _Mone's_,
+     Zeitschrift, XVII, 56; XIII, 155, and _Hegel,_ Strassb.
+     Chr., II, 1025. A remarkable strike of the Parisian book
+     printers under Francis I. (_Hildebrand's_ Jahrb., 1873, II,
+     375 ff.) In so-called "home manufactures," where the
+     "manufacturer" is both orderer, preparer and seller, but
+     strikes are scarcely possible without much fixed capital.
+     The strike of the factory spinners in Lancashire in 1810
+     caused 30,000 workmen to stop work for four months.
+
+     Among the next following coalitions of labor, those of the
+     Glasgow weavers in 1812 and 1822 were very important. In the
+     latter, two workmen who would not participate with the
+     strikers were blinded with sulphuric acid. In 1818, great
+     strike by the Scotch miners. The Preston strike of 1853
+     lasted 36 weeks. It is said that 6,200 male and 11,800
+     female working people took part in it. (_Athenæum_, 30
+     Sept., 1854.) Compare _Morrison_, Essay on the Relations
+     between Labor and Capital, 1854. For a history of Swiss
+     strikes, especially of the Zürich compositors' strike in
+     1873, see _Böhmert_, Arbeiterverhältnisse, II, 287 ff. Comic
+     type of a strike of married women in _Aristophanes_,
+     Lysistrata. A practical one in Rome at the departure of the
+     plebeians for the holy mountains, 492 before Christ.
+     (_Livy_, II, 32,) then, on a small scale, on the removal of
+     the pipers after Tiberius, 311 before Christ. (_Liv._, IX,
+     30.)]
+
+     [Footnote 176-2: Instances of successful strikes:
+     Fortnightly Review, Nov. 1865. Similarly in Germany, in
+     1865; but there, in truth, many strikes were only defensive
+     and intended to restore the former thing-value of the
+     declined money (Werke, XIII, 151). The English strikes, in
+     1866 and 1867, failed nearly all, so that wages again
+     declined to their level in 1859, and in many places, to what
+     they had been in the crisis-year 1857. (Ausland, 16 April,
+     1868.) As to how even in Victoria, strikes which opposed a
+     decline of wages from 16 to from 8 to 10 shillings a day
+     failed, after doing great injury, see Statist. Journ., 1861,
+     129 ff.]
+
+     [Footnote 176-3: The Preston strikers of 1853 got even from
+     their non-striking colleagues, £30,000. Had their masters
+     prevented this, the affair would have been terminated much
+     sooner. (Quart. Rev., Oct. 1859.) But employers are much
+     more frequently divided by rivalries than workmen,
+     especially in strikes against new machines or when a
+     manufacturer, who has too large a supply of goods on hand,
+     desires a strike himself. On account of their smaller
+     number, too, they are less in a condition to declare a
+     recusant colleague in disgrace. _Adam Smith's_ remark that
+     coalitions of capitalists are much more frequent than those
+     of workmen, only that much less is said of them, is hardly
+     applicable to our time. (Wealth of Nat., I, ch. 8, p. 100,
+     ed. Bas.) But, since the strike of the London builders in
+     1859, capitalists have begun to form more general opposing
+     unions. On a very energetic one among the ship builders on
+     the Clyde, see _Count de Paris_, Les Associations ouvrières
+     en Angleterre, 1869, ch. 7. Examples on a smaller scale,
+     Edinburg Review, LXXXIX, 327 ff. On the other hand, a
+     "lock-out" on the part of capitalists is very difficult,
+     from the fact that it is impossible to prevent idle workmen
+     from being supported from the poor fund. Moreover, there can
+     be no greater folly than for the workmen to add insult to
+     their masters to their demand for higher wages, because then
+     the limits within which the latter are willing to continue
+     the business at all, are made much narrower, than they would
+     be on a merely economic estimate.]
+
+     [Footnote 176-4: Thus the "iron man," by which a single
+     person can put from 1,500 to 3,000 spindles in motion; also
+     an improved plane-machine, by means of which several colors
+     can be printed at once. (_Ure_, Philosophy of Manufactures,
+     366 ff.) Machines for riveting cauldrons. (_Dingler_,
+     Polytechnisches Journal, LXXV, 413.)]
+
+     [Footnote 176-5: Compare the statements in the Statist.
+     Journal, 1867, 7.]
+
+     [Footnote 176-6: Thus in several places in 1848, and in
+     Paris in 1789, where even the lackeys and apothecary clerks
+     formed such unions. (_Wachsmuth_, Gesch. Frankreichs im
+     Revolutionszeitalter, I, 178.) Similarly, frequently in
+     isolated factories.]
+
+     [Footnote 176-7: _Thornton_ mentions six instances in which
+     strikes and strike-unions may permanently raise wages: a,
+     when those engaged in an enterprise have a virtual monopoly
+     in their own neighborhood; b, when the country has, for the
+     industry in question, great advantage over other lands; c,
+     when the demand for the product of the industry is necessary
+     on account of an increasing number and increasing capacity
+     to pay of customers; d, when the progress of the arts,
+     especially of machinery, makes the industry more productive;
+     e, when the rise in the rate of wages affects all branches
+     of industry to the same extent, and at the same time; f,
+     when the industry is carried on on so large a scale that it
+     yields greater profit, even while paying a smaller
+     percentage than other industries. (On Labour, III, ch. 4.)
+     It is easy to see that many of these conditions meet in the
+     building industries in large cities.]
+
+     [Footnote 176-8: Compare _Brentano_ in the Preliminary Essay
+     to _T. Smith's_ English Guilds, ch. LXXII ff. The same
+     author's Die Arbeitergilden der Gegenwart Bd., I, 1871.]
+
+     [Footnote 176-9: The greater number of strikes begin with a
+     small minority, generally of the best paid workmen, whom the
+     others follow unwillingly but blindly. (Edinb. Rev., 149,
+     422.) The despotic power of the Unions over their members
+     depends principally on the fact that their treasury serves
+     not only to maintain strikes but at the same time as an
+     insurance fund for old age and sickness, and that every case
+     of disobedience of a member is punished by expulsion, i. e.,
+     with the loss of everything he has contributed. Hence the
+     Quart. Rev., Oct., 1867, advises that these two purposes
+     which are so hard, technically speaking, to reconcile with
+     each other, should be required to be kept separate,
+     especially as most of the unions, considered as benevolent
+     associations, are really insolvent. (Edinb. Review, Oct.,
+     1867, 421 ff.) On the other hand, both the _Count of Paris_,
+     ch. 3, and _Thornton_ are favorable to the admixture of
+     humane and offensive objects in the trades-unions, because
+     the former contribute to make the latter milder. _Brentano_,
+     I, 153, has no great objection to the insolvency shown by
+     the books of the unions _vis-a-vis_ of their duties as
+     insurers, since, hitherto, the subscription of an
+     extraordinary sum has never failed to make up the deficit. A
+     strike is detrimental in proportion as the striking workmen
+     represent more of the previous preliminary operations that
+     go to finish a product; as when, for instance, the 50 or 60
+     spinners in a factory strike, and in consequence, from 700
+     to 800 other workmen are thrown out of employment and forced
+     into idleness against their will. What might not have been
+     the consequence of the great union of the coal miners of
+     Durham and Northumberland, the members of which numbered
+     40,000 men, and stopped work from April to the beginning of
+     September, 1864, so that at last it became necessary to
+     carry Scotch coal to Newcastle! Compare _Engels_, Lage der
+     arbeitenden Klassen in England, 314 ff.]
+
+     [Footnote 176-10: The English unions even forbid their
+     members to exceed the established time of work, or the
+     established task. Thus, for instance, a penalty of one
+     shilling for carrying at any time more than eight bricks in
+     the case of masons, and a similar penalty inflicted on the
+     person's companions who witness the violation of the rule
+     and do not report the guilty party. Equality of wages for
+     all members; piece-wages allowed only when the surplus
+     earned is divided among one's companions. Hence the complete
+     discouragement of all skill or industry above the average.
+     If an employer exceeds the prescribed number of apprentices;
+     if he engages workmen not belonging to the union; if he
+     introduces new machines, a strike is ordered. With all this
+     the severest exclusion respectively of one class of
+     tradesmen by the other. If a carpenter lays a few stones, a
+     strike immediately! (Quart. Rev., October, 1867, 363, 373.)
+     Rigid shutting out of the products of one district from
+     another. (Edinburg Rev., October, 1867, 431.) The poor
+     hand-weavers were thus prevented going from their
+     over-crowded trade into another. (_J. Stuart Mill_,
+     Principles, II, ch. 14, 6.) However, many trades-unions
+     still seem to be free from these degenerations, and the most
+     influential unions the most moderate in their proceedings.
+     (_Count de Paris_, ch. 8, 9; _Thornton_, III, ch. 2.)
+     _Brentano_ expressly assured us that such degeneration of
+     the unions in England is confined to the building
+     trades-unions. (I, 68, 188.)]
+
+     [Footnote 176-11: "They have no notion of contenting
+     themselves with an equal voice in the settlement of labor
+     questions; they tell us plainly that what they aspire to is
+     to control the destinies of labor, ... to dictate, to be
+     able to arrange the conditions of employment at their own
+     discretion." (_Thornton_, III, ch. 1.) The membership of the
+     English trades-unions was estimated, at the Manchester
+     Congress, June, 1868, at 500,000 by some, and at 800,000 by
+     others. _Brentano_, II, 310, speaks of 960,000. Since 1830,
+     there have been frequent endeavors to effect a great
+     combination, with special organizations of the different
+     trades. During recent years, there have been even beginnings
+     of an international organization, although in Germany, for
+     instance, at the end of 1874, there were 345 trades-unions,
+     with a membership of over 21,000. (_M. Hirsch._) A formal
+     theory of workmen's unions to culminate in popular
+     representation, in _Dühring_, Arbeit und Kapital, 1866,
+     especially, p. 233; while the American _Walker_ accuses all
+     such combinations, which used compulsion on any one, of
+     moral high treason against republican institutions. (Science
+     of Wealth, 272.)]
+
+     [Footnote 176-12: The former view, for instance, of _Harriet
+     Martineau_, "The tendence of strikes and sticks to produce
+     low wages" (1834) is now unconditionally shared only by few.
+     When _Sterling_ says that the momentary success of a strike
+     is followed by a two-fold reaction which restores the
+     natural equilibrium, viz.: increase of the number of workmen
+     and decrease of capital (Journal des Econ., 1870, 192), he
+     overlooks not only the length of the transition time which
+     would certainly be possible here, but also that an altered
+     standard of life of the workmen prevents the former, and one
+     of the capitalists the latter. The _Count of Paris_ and
+     _Thornton_ do not doubt that the elevation of the condition
+     of the English working classes, as proved by _Ludlow_ and
+     _Jones_, is to be ascribed, in part, to the effect of the
+     trades-unions. Many of the unions work against the
+     intemperance and quarrelsomeness of their members. The
+     people's charter of 1835, came from the London "workingmen's
+     association."]
+
+     [Footnote 176-13: On the great utility of the arbitration
+     courts between masters and workingmen, by which the struggle
+     for wages is terminated in a peaceable manner and without
+     any interruption of work, see _Schäffle_, Kapitalismus and
+     Socialismus, 659. More minutely in _Thornton_, III., ch. 5.
+     _Faucher_, Vierteljahrsschr., 1869, III, 302, calls
+     attention to the fact that such "boards" may be abused to
+     oppress small manufacturers.]
+
+
+SECTION CLXXVII.
+
+WAGES-POLICY.--STRIKES AND THE STATE.
+
+Should the state tolerate the existence of strikes or strike-unions?
+Legislation in the past most frequently gave a negative answer to the
+question, as well from a repugnance for high wages as for the self-help
+of the masses.[177-1] But even leaving the above reasons out of
+consideration, every strike is a severe injury to the national resources
+in general,[177-2] one which causes that part especially to suffer from
+which those engaged in the various enterprises and the working class
+draw their income. And, even for the latter, the damage endured is so
+great that it can be compensated for only by very permanently high
+wages.[177-3] How many a weak man has been misled by a long cessation
+from work during a strike, which ate up his savings, into lasting
+idleness and a devil-may-care kind of life. When employers, through fear
+of strikes, keep all large orders, etc. secret, the workmen are not in a
+condition to forecast their prospects and condition even for the near
+future. And in the end a dread of the frequent return of such
+disturbances may cause capital to emigrate.[177-4]
+
+However, where there exists a very high degree of civilization, there is
+a balance of reasons in favor of the non-intervention of
+governments,[177-5] but only so long as the striking workmen are guilty
+of no breach of contract and of no crime. Where every one may legally
+throw up his employment, there is certainly no plausible legal objection
+to all of them doing so at once, and then forming new engagements.
+Coalitions of purchasers of labor for the purpose of lowering wages,
+which are most frequent though noiselessly formed, the police power of
+the state cannot prevent. If now it were attempted to keep the working
+class alone from endeavoring to correspondingly raise their wages, the
+impression would become general, and be entertained with right, that the
+authorities were given to measuring with different standards. Where the
+working classes so sensitively feel the influence of the government on
+the state of their wages, they would be only too much inclined to charge
+every chance pressure made by the circumstances of the times to the
+account of the state, and thus burthen it with a totally unbearable
+responsibility. Since 1824, freedom of competition has prevailed in this
+matter on both sides in England.[177-6] The dark side of the picture
+would be most easily brightened by a longer duration of contracts of
+labor.[177-7]
+
+Whether the trades-unions, when they shall have happily withstood the
+fermentative process now going on, shall be able to fill up the void
+created by the downfall of the economically active corporations of the
+latter part of the middle ages, we shall discuss in our future work, Die
+Nationalökonomik des Gewerbfleisses. One of the chief conditions
+precedent thereto is the strict justice of the state, which should
+protect members of the unions from all tyranny by their leaders, and
+from violations of the legal rights of non-members.[177-8]
+
+     [Footnote 177-1: Thus even 34 Edw. III., c. 9. Journeymen
+     builders were forbidden by 3 Henry VI., c. 1, to form
+     conspiracies to enhance the rate of wages, under pain of
+     felony. Finally, 39 and 40 George III., c. 106, threatened
+     any one who, by mere persuasion, should induce a workman to
+     leave his master's service, etc., with 2 months in the
+     work-house, or 3 months' imprisonment. In France, as late as
+     June and September, 1791, all conspiracies to raise wages
+     were prohibited under penalty, the incentive to such
+     prohibition being the opposition to all _intérêts
+     intermédiaries_ between the _intérêts particulier_; and the
+     _intérêt general_ which is characteristic of the entire
+     revolution. Compare the law of 22 Germinal, 11. The German
+     Empire on the 16th of August, 1731, threatened journeymen
+     strikers even with death, "when accompanied by great
+     refractoriness and productive of real damage." (Art. 15.)]
+
+     [Footnote 177-2: The strike of the spinners of Preston, to
+     compel equal wages with those of Bolton, lasted from October
+     to the end of December, 1836. The spinners got from their
+     treasury 5 shillings a week (previously 22½ shillings
+     wages); twisters, 2 to 3 shillings; carders and weavers
+     lived on alms. In the middle of December, the funds of the
+     union were exhausted. Altogether, the workmen lost 400,000
+     thalers; the manufacturers, over 250,000; and many merchants
+     failed. (_H. Ashworth_, Inquiry into the Origin and Results
+     of the Cotton Spinners' Strike.) The Preston strike of 1853
+     cost the employers £165,000, the workmen, £357,000.
+     (Edinburgh Rev., July, 1854, 166.) The North-Stafford
+     puddlers' strike, in 1865, cost the workmen in wages alone
+     £320,000. Concerning 8 strikes that failed, mostly between
+     1859 and 1861, which cost in the aggregate £1,570,000, of
+     which £1,353,000 were wages lost, see Statist. Journ., 1861,
+     503. A great mortality of the children of workingmen
+     observed during strikes!]
+
+     [Footnote 177-3: _Watts_ assumes that the strikers seek to
+     attain, on an average, an advance in their wages of five per
+     cent. Now, a week is about equivalent to two per cent. of
+     the year. If, therefore, a strike lasted one month, the
+     increase of wages it operates must last one and three-fifths
+     years to compensate the workmen for their loss. A strike
+     that lasts 12½ months would require 20 years to effect
+     the same, and this does not include interest on lost wages.
+     (Statist. Journal, 1861, 501 ff.) However, it is possible
+     that the striking workingmen themselves should lose more
+     than they gained, but that, for the whole working class, the
+     gain should exceed the loss; since those who had not
+     participated in the strike would participate in the
+     increased wages. _Thornton_ is of opinion that employers
+     have won in most strikes, but surrendered in the intervals
+     between strikes, so that now English workmen receive
+     certainly £5,000,000 more in wages than they would be
+     getting were it not for the trades-unions. (III, ch. 3-4.)]
+
+     [Footnote 177-4: By the Norwich strike, about the beginning
+     of the fourth decade of this century, what remained of the
+     industrial life of that city disappeared. (_Kohl_, Reise,
+     II, 363 ff.) Similarly in Dublin. (Quart. Rev., October,
+     1859, 485 ff.) In Cork, the workingmen's union, in 1827,
+     allowed no strange workmen to join them, and, it is said,
+     committed twenty murders with a view to that end. The
+     builders demanded 4s. 1d. a day wages. This discouraged the
+     erection of new buildings, and it frequently happened that
+     they found employment only one day in two weeks. (Edinb.
+     Rev., XLVII, 212.) When workingmen struggle against a
+     natural decline of the rate of wages, they, of course, add
+     to their misfortune.]
+
+     [Footnote 177-5: The grounds on which _Brentano_, following
+     _Ludlow_ and _Harrison_, justifies the intervention of the
+     state, have a very dangerous bearing, inasmuch as they do
+     not suppose, as a condition precedent, a perfectly wise and
+     impartial governmental authority.]
+
+     [Footnote 177-6: 5 George IV., c. 95: "provided no violence
+     is used." Further, 6 George IV., c. 129, and 122 Vict., c.
+     34. The law of 1871 declares the trades-unions lawful,
+     allows them the right of registration, and thus empowers
+     them to hold property. In France, the law of May 25, 1864,
+     alters articles 414 to 416 of the _Code pénal_ to the effect
+     that only such strikes shall be punished as happen _à l'aide
+     de violences, voies de fait, manœuvres frauduleuses_;
+     also coalitions against the _libre exercise du travail à
+     l'aide d'amendes, défenses, proscriptions, interdictions_.
+     But these amendments were rendered rather inoperative by the
+     fact that meetings of more than 20 persons could be held
+     only by permission of the police.]
+
+     [Footnote 177-7: As, for instance, the coal workers in the
+     north of England required a half year's service. So long as
+     the trades-unions consider themselves, by way of preference,
+     as instruments of war, it is conceivable how they oppose all
+     binding contracts for labor. So now among the German
+     journeymen book-printers, and so, also, for the most part,
+     in England. (_Brentano_, II, 108.) In quieter times, when
+     the trades-unions shall have become peace institutions, this
+     will be otherwise. We cannot even enjoy the bright side of
+     the freedom of birds without enduring its dark side! In
+     Switzerland, breaches of contract by railroad officers are
+     guarded against by their giving security beforehand; in
+     manufactures, by the holding back of from 3 to 14 days'
+     wages. (_Böhmert_, Arbeiterverhältnisse, II, 91, 388 ff.)]
+
+     [Footnote 177-8: In Switzerland, the trades-unions have
+     shown themselves very powerful against the employers of
+     tradesmen, but rather powerless against manufacturing
+     employers, and thus materially increased the already
+     existing inferiority of the former. (_Böhmert_, II, 401.)
+     They may, however, by further successful development,
+     constitute the basis of a new smaller middle class, similar
+     to the tradesmen's guilds at the end of the middle ages; and
+     indeed by a new exclusiveness, in a downward direction. This
+     would be a bulwark against the destructive inroads of
+     socialism similar to that which the freed peasantry in
+     France were and still are. While this is also _Brentano's_
+     view, _R. Meyer_, Emancipationskampf des vierten Standes,
+     1874, I, 254 ff., calls the trades-unions a practical
+     preparation for socialism to which the English "morally went
+     over" in 1869 (I, 751); which indeed loses much of the
+     appearance of truth from the fact that _Marx_ (_Brentano_,
+     Arbeitergilden, II, 332) and the disciples of _Lassalle_
+     (_Meyer_, I, 312) hold the trades-unions in contempt. _John
+     Stuart Mill_ approves of all trades-unions that seek to
+     effect the better remuneration of labor, and opposes all
+     which would bring the wages paid for good work and bad work
+     to the same level. (Principles, II, ch. 14, 6; V, ch. 10,
+     5.) Compare _Tooke_, History of Prices, VI, 176. Reports of
+     the Commissioners appointed to inquire into the Organization
+     and Rules of Trades-Unions, 1857.]
+
+
+SECTION CLXXVIII.
+
+WAGES-POLICY.--MINIMUM OF WAGES.
+
+The demand[178-1] so frequently heard recently, that the state should
+guaranty an "equitable" minimum of wages, could be granted where the
+natural rate of wages has fallen below that minimum, only on condition
+that some of the working class in the distribution of the wages capital
+(no longer sufficient in all the less profitable branches of business)
+should go away entirely empty handed. Hence, as a rule, in addition to
+that wages-guaranty, the guaranty of the right to labor is also
+required. But as useful labor always finds purchasers (the word "useful"
+being here employed in the sense of the entire economy of a people, and
+understood in the light of the proper gradation of wants and the means
+of satisfying them), such a right to labor means no more and no less
+than that the state should force labor which no one can use, upon
+others.[178-2] Something similar is true of Louis Blanc's proposition
+that the rate of wages of the workmen should be determined and regulated
+by their own votes and among themselves.[178-3]
+
+All such measures are injurious in proportion as they, by extending aid
+and the amount of the minimum, go beyond the limits of benevolence, and
+approach those of a community of goods. (§ 81 ff.) However, if they
+would be lasting and not pull workmen rapidly down to the very depths of
+universal and irremediable misery, these measures should be accompanied
+by the bestowal of power on the guarantor to hold the further increase
+of the human family within bounds.[178-4]
+
+The condition of workmen can be continued good or materially improved
+only on condition that their numbers increase less rapidly than the
+capital destined for wages. The latter increases usually and most surely
+by savings. But only the middle classes are really saving. In England,
+for instance, the national capital increases every year by at least
+£50,000,000, while the working classes spend at least £60,000,000 in
+tobacco and spirituous liquors, _i. e._, in numberless instances, only
+for a momentary injurious enjoyment by the adult males of the class, one
+in which their families have almost no share. According to this, every
+compulsory rise in wages would be a taking away from the saving class
+and a giving to a class that effect no savings. Is not this to act after
+the manner of the savages who cut down a fruit tree in order more
+conveniently to relish its fruit?[178-5]
+
+Benjamin Franklin calls out to workmen and says: If any one tells you
+that you can become rich in any other way than through industry and
+frugality, do not listen to him; he is a poisoner! And, in fact, only
+those changes permanently improve the condition of the working classes
+which are useful to the whole people: enhanced productiveness of every
+branch of business in the country, increased capital, the growth (also
+relative) of the industrial middle classes, the greater education,
+strength of character, skill and fidelity in labor of workmen
+themselves. Much especially depends upon their foresight and
+self-control as regards bringing children into the world. Without this
+latter virtue even the favorable circumstances would be soon trifled
+away.[178-6]
+
+     [Footnote 178-1: Compare, besides, the Prussian A. L. R.,
+     II, 19, 2. In _Turgot_, _droit du travail_, and _droit au
+     travail_ are still confounded one with the other. Œuvres
+     éd. _Daire_, II, 302 ff; especially 306. In such questions,
+     people generally think only of factory hands. But have not
+     writers just as good a _droit au travail_ to readers whom
+     the state should provide them with, lawyers to clients and
+     doctors to patients?]
+
+     [Footnote 178-2: _L. Faucher_ calls the _droit au travail_
+     worse than the equal and compulsory distribution of all
+     goods, because it lays hands on not only present products
+     but even on the productive forces. It supposes that
+     unlimited production is possible; that the state may
+     regulate the market at pleasure to serve its purposes; that,
+     in fact, the state can give without having first taken what
+     it gave. (Mélanges d'Economie politique, II, 148 ff.) The
+     French national assembly rejected the "right to labor" on
+     the 15th of September, 1848, by 596 ayes to 187 nays, after
+     the provisional government had proclaimed it, February 25.
+     Le Droit au Travail à l'Assemblée nationale avec des
+     Observations de _Faucher, Wolowski, Bastiat_ etc., by _J.
+     Garnier_, Paris, 1848.]
+
+     [Footnote 178-3: _L. Blanc_, De L'Organization du Travail,
+     1849.]
+
+     [Footnote 178-4: "Every one has a right to live. We will
+     suppose this granted. But no one has a right to bring
+     creatures into life to be supported by other people. Whoever
+     means to stand upon the first of these rights must renounce
+     all pretension to the last.... Posterity will one day ask
+     with astonishment what sort of people it could be among whom
+     such preachers could find proselytes." (_J. S. Mill_,
+     Principles, II, ch. 12.)]
+
+     [Footnote 178-5: Compare _Morrison_, loc. cit. Quarterly
+     Rev., Jan. 1872, 260. The English savings in the savings
+     banks, between 1839 and 1846, increased yearly in amount
+     only £1,408,630, and scarcely half of this came from
+     wages-workmen in the narrower sense of the term. What the
+     latter contribute to the fund for the old and sick is not
+     really productive capital but only individually deferred
+     consumption. Let us suppose that a man had an income of
+     $3,000 a year, of which he laid out yearly $2,000 ($1,000
+     for wages, $1,000 for rent and interest on capital), and
+     that he capitalizes $1,000. If now this man were, either
+     through philanthropy or in furtherance of socialism, to
+     double the wages he paid, the result would not be
+     detrimental to the economic interests of the whole country
+     only on the supposition that working classes who received
+     the increased wages should either save what he is no longer
+     able to save, or that by inventions or greater personal
+     skill, etc., they should increase the national income.]
+
+     [Footnote 178-6: According to _Hildebrand's_ Jahrbb., 1870,
+     I, 435, 193, North American workmen, the quality of work
+     being supposed the same, now accomplish from 20 to 30 per
+     cent. less than before 1860. Thus, in 1858, in New York, a
+     steam engine was manufactured for $23,000, in 2,323 work
+     days. In 1869, a similar one was built for $40,000 in 3,538
+     days. In the former case, the manufacturer made a profit. In
+     the latter, he lost $5,000.
+
+     _John Stuart Mill_, II, ch. 13. Against the
+     "philanthropists" who find it hard to preach to the poor,
+     the only efficacious means of improving their condition,
+     _Dunoyer_, L. du T., IV, ch. 10, says: The rich _do_ employ
+     it, although they have much less need of it! Even _Marlo_
+     admits that a guaranty of the right to labor, without any
+     measures to limit population, would, in a short time, and
+     irredeemably lead the country to destruction. (Weltökonomie,
+     I, 2, 357.) _von Thünen_, der isolirte Staat., II, 1, 81
+     ff., would take a leap out of the vicious circle that those
+     who live by the labor of their hands can produce no rise in
+     their wages, because they are too little educated to hold
+     their increase properly in check; and that, on the other
+     hand, they cannot give their children a decent education,
+     because their wages are too low; by suggesting that
+     educational institutions should be established by the state,
+     and that these should elevate the subsequent generation of
+     workmen intellectually.]
+
+
+
+
+CHAPTER IV.
+
+INTEREST ON CAPITAL.
+
+
+SECTION CLXXIX.
+
+THE RATE OF INTEREST IN GENERAL.
+
+Interest on capital,[179-1] or the price paid for the use of capital,
+should not be confounded with the price of money (§ 42); although in
+common life people so frequently complain of want of money where there
+is only a want of capital, and sometimes even when there is a
+superabundance of money.[179-2] This error is connected with the fact,
+that for the sake of convenience, loans of capital are so often effected
+in the form of money and that they are always at least estimated in
+money; but neither of these things is essential.
+
+In reality, however, we as seldom meet with interest[179-3] pure and
+simple, as we do with rent pure and simple. A person who works with his
+own capital can, at best, by a comparison with others, determine where,
+in the returns of his business, wages stop and interest begins.[179-4]
+And even in the loaning of capital, it depends largely on supply and
+demand, whether the creditor shall suffer a deduction in consequence of
+the absence of care and labor attending his gain, and whether the
+debtor, in order to get some capital at all, shall sacrifice a part of
+the wages of his labor.[179-5] When Adam Smith assumes it to be the rule
+that the "profit of stock" is about twice as great as the "interest of
+money,"[179-6] it is evident that a considerable amount of what is
+properly wages or profit of the employer (_Uhternekmer_ = undertaker) is
+included in the former.
+
+Many businesses have the reputation of paying a very large interest on
+the capital employed in them, when in reality they only pay the
+undertaker of them wages unusually high as compared with the amount of
+capital employed in them. Apothecaries, for instance, are called in some
+places "ninety-niners," because it is said that they earn 99 per cent.
+To discover the error, it would be sufficient to inquire the rate of
+interest on the capital borrowed by the apothecary on hypothecation, for
+instance, to enlarge his industry. But on the other hand, such a man who
+has more than any other manufacturer to do with the most delicate
+materials and with them in greater variety, requires proportionately
+greater caution and knowledge. Besides, as the guardian of the health
+and life of so many, and even as the comptroller of physicians, he
+should be a man who inspired universal and unqualified confidence.[179-7]
+By the rate of interest customary in a country, we mean the average rate of
+the interest on money-capital employed safely and without trouble.
+
+     [Footnote 179-1: In the case of fixed capital, we generally
+     speak of rent; in the case of circulating capital, of
+     interest. If interest be conceived as a fractional part of
+     the capital itself, the relation between the two is called
+     "the rate of interest," most generally expressed as a
+     percentage, and for one year.]
+
+     [Footnote 179-2: In Russia, great depreciation of the
+     assignats, and yet the people complained of a "want of
+     money." (_Storch_, Handbuch, II, 15.) According to the San
+     Francisco correspondent of the Times, Jan. 31, 1850, one per
+     cent. a day discount was paid there! Compare _North_,
+     Discourse on Trade, 11 seq.]
+
+     [Footnote 179-3: Gross interest and net interest
+     corresponding to the difference between gross product and
+     net product.]
+
+     [Footnote 179-4: This is the natural rent of capital in
+     contradistinction to the stipulated rent. (_Rau_, Lehrbuch,
+     I, § 223.)]
+
+     [Footnote 179-5: Thus, for instance, a so-called beginner
+     who is conscious of possessing great working capacity, but
+     who possesses for the time being little credit. _Tooke_,
+     Considerations on the State of the Currency, 1826,
+     distinguishes three kinds of capitalists: a, those who are
+     averse to running any risk whatever or incurring any
+     trouble, or are not able to incur any risk or trouble, for
+     whom every great increase of the sinking fund lowers the
+     rate of interest, and every war loan raises it; b, those who
+     will run no risk, but who are not averse to the trouble of
+     looking after their investments and of endeavoring to obtain
+     a higher rate of interest; c, such as, to obtain a higher
+     rate of interest, unhesitatingly risk something. Borrowers
+     he divides thus: a, those who employ the borrowed capital
+     and their own in such a way as to enable them to meet their
+     obligations and besides to earn a reasonable profit; b,
+     those who need others' capital to make up for the momentary
+     failure of the productiveness of their own; lastly c,
+     unproductive consumers.]
+
+     [Footnote 179-6: Wealth of Nat., I, ch. 9. The gross product
+     of English cotton industry was, in 1832, estimated at
+     £32,000,000, viz: £8,000,000 worth of material, £20,000,000
+     wages, £2,000,000 interest, £2,000,000 undertaker's profits.
+     (_Schön_, Nat. Oek, 104.)]
+
+     [Footnote 179-7: _Adam Smith_, I, ch. 10, 1: where the
+     reasons why a shop-keeper in a small town apparently gets a
+     larger interest than one in a large city, and yet gets rich
+     less frequently, are developed. The high profit made from
+     industrial secrets, Adam Smith very correctly considers
+     wages (I, ch. 7). Why not also that made by inn-keepers? (I,
+     ch. 10, 1.) When the returns of a business differ according
+     to circumstances which depend on the person of the conductor
+     of the business himself, and may by him be transferred into
+     another business, etc.; when the competition in it is
+     determined by personal agreeableness or disagreeableness, it
+     is evident that the larger returns are to be ascribed rather
+     to the highness of wages than of the rate of interest. The
+     profit also which a second-hand hirer makes is wages.
+     (_Riedel_, Nat. Oek., 376.)]
+
+
+SECTION CLXXX.
+
+RATE OF INTEREST IN GENERAL.--ITS LEVEL.
+
+Within the limits of the same national-economic territory, the different
+employments of capital tend uniformly to pay the same rate of
+interest.[180-1] If one branch of business were much more profitable
+than another, it would be to the interest of the owners of capital to
+allow it to flow into the former and out of the latter, until a level
+was reached.[180-2]
+
+The most noticeable exception to this rule is only an apparent one. The
+revenue (_Nutzung_) derived from the use of capital must not be
+confounded with its partial restoration.[180-3] Thus, for instance, the
+rent of a house, if the entire capital is not to be sooner or later
+consumed entirely, must embrace, besides a payment for the use of the
+house, a sum sufficient to defray the expenses of repairing it, and even
+to effect a gradual accumulation of capital for the purpose of
+rebuilding. The risk attending the investment of capital plays a very
+large part and must be taken into special consideration. If the risk in
+a business be so great that ten who engage in it succeed and ten fail,
+the returns of the former, which are more than double those usual in the
+country, in reality pay, when the ten who failed are taken into the
+account, only the rate of interest customary in the country. The risk
+may depend on the uncertainty of the person to whom the capital is
+confided;[180-4] on the uncertainty of the branch of business in which
+it is intended to employ it,[180-5] or on the uncertainty of the
+commercial situation in general; but especially may it depend on the
+uncertainty of the laws.[180-6] The temporary lying idle of capital, for
+instance, in dwelling houses at bathing places during the winter season,
+increases the rate of interest much more than it does the rate of wages
+in the corresponding case of the lying idle of labor; for the reason
+that there is something pleasurable in the repose of the latter.
+(_Senior._) On the whole, the vanity of mankind has an effect upon the
+rate of interest similar to that which it has on the rate of wages. (See
+§ 168.) It causes the small chances of loss to be estimated below their
+real value, and the extraordinary chances of gain above it.[180-7]
+
+     [Footnote 180-1: Compare _Harris_, Essay on Money and Coins,
+     13. _Per contra, Ganilh_, Dictionnaire analyt., 107.
+     According to _Hermann_, Staatsw. Untersuchungen, 147, a
+     product which withdraws an amount of capital = _a_ from the
+     immediate use of its owner for _n_ months must bring in in
+     its price a surplus, over and above the outlay of capital,
+     which would bear the same ratio to the profit from another
+     product which employed an amount of capital = _b_, _m_
+     months, that _an_ bears to _bm_.]
+
+     [Footnote 180-2: The class of bankers, etc. which precisely
+     in the higher stages of civilization is one so highly
+     developed, is called upon to adjust these differences.]
+
+     [Footnote 180-3: Life annuities and annual revenues, _à
+     fonds perdu_.]
+
+     [Footnote 180-4: Hence, for instance, good men engaged in
+     industrial pursuits who employ borrowed capital productively
+     pay lower interest than idlers who are suspected of desiring
+     only to spend it in dissipation. High house-rent usually
+     paid by proletarians.]
+
+     [Footnote 180-5: Thus even in _Anderson's_ time, it was
+     necessary that the profit of one good year in the whale
+     fishery should compensate for the damage caused by six bad
+     ones. (Origin of Commerce, III, 184.) Slave-traders made
+     their calculations to lose from three to four out of five
+     expeditions. (Athenæum, May 6, 1848) Similarly in smuggling
+     and contraband. High rate of interest in gross adventure
+     trade and bottomry contracts, frequently 30 and even 50 per
+     cent.; in ancient Athens, for a simple voyage to the Black
+     Sea, 36 per cent., while the rate of interest customary in
+     the country was only from 12 to 18 per cent.; the interest
+     paid by rented houses only 8-1/7, and by land leases only 8
+     per cent. (_Bockh_, Staatshaushalt der Athener, I, 175 ff.;
+     _Isaeus de Hagn._, Hered., 293) In Rome, before Justinian's
+     time, maritime interest was unlimited. (_Hudtwalker_, De
+     Foenore nautico Romano, 1810.) And so in the manufacture of
+     powder, the frequent explosion of the mills has to be taken
+     into account: in France and Austria, 16 per cent. per annum.
+     (_Hermann_, Principien, 119.) Here belong those new
+     enterprises which, when they succeed, pay a high profit.
+     _Thaer_, in reference to this insurance premium, says: if
+     the capital employed to purchase a landed estate yields 4
+     per cent., the inventory (_Inventar_) should bring in at
+     least 6, and the working capital 12 per cent. (Ration.
+     Landwirthschaft.)]
+
+     [Footnote 180-6: Compare _supra_, § 91; _infra_, §§ 184,
+     188.]
+
+     [Footnote 180-7: Thus _Friedr. Perthes_, in _Politz_,
+     Jarhbüchern, Jan., 1829, 42, thinks that the publication of
+     scientific books in Germany, since 1800, caused, on the
+     whole, a loss of capital. In the Canadian lumber trade,
+     also, speculators, in the aggregate, lost more than was
+     gained. Yet the business goes on because of its lottery
+     character. (_John Stuart Mill_, II, ch. 15, 4.) In
+     lotteries, it is certain that the aggregate of players lose.
+     So too in speculation in English stocks, on account of the
+     costs to be paid the state. In the case of frightful losses,
+     which may afford food for the imagination, the reverse is
+     found. Thus, for instance, in England, fire insurance, stamp
+     duties included, was paid for at a rate five times as high
+     as mathematical calculation showed it to be worth.
+     (_Senior_, Outlines, 212 ff.) Much here depends naturally on
+     national character, which, in England for instance, or in
+     the United States, is much more adventurous than in many
+     quiet regions of continental Europe.]
+
+
+SECTION CLXXXI.
+
+RULE OF INTEREST IN GENERAL.--CAUSES OF DIFFERENT RATES.
+
+The real exceptions to the above rules are caused by a prevention of the
+leveling influx and outflow of capital. Among nations in a low stage of
+civilization, there is wont to be a multitude of legal impediments in
+this respect. The existence of a difference of classes, of privileged
+corporations, etc., not only restrains the transition of workmen, but
+also of capital from one branch of industry to another. But even the
+mere routine of capitalists, that blind distrust of everything new so
+frequently characteristic of easily contented men, may produce the same
+result.[181-1] In the higher stages of civilization, patents for
+inventions and bank privileges, are causes of a lastingly higher rate of
+interest than is usual in the country.[181-2] Finally, since in many
+enterprises only a large amount of capital can be used at all, or at
+least with most advantage, the aggregation of which from many small
+sources is ordinarily much more difficult than the division of a large
+one into small fractional parts; the rate of interest for very small
+amounts of capital, and especially in the higher stages of civilization,
+is usually lower than that of large amounts of capital. We need only
+mention interest paid by savings-bank investments.[181-3]
+
+If circulating capital has been changed into fixed capital, its yield
+will depend upon the price of the particular goods in the production of
+which it has been made to serve. Compared with the cost of restoration
+of fixed capital, this yield may, in a favorable case, constitute an
+extraordinarily high rate of interest, in an unfavorable a very low one;
+and the former of these two extremes has a greater chance of being
+realized, in proportion as it is difficult to multiply fixed capital of
+the same kind; the latter, the more exclusively it can be employed in
+only one kind of production, and the longer time it takes to be used up
+by wear.[181-4] When fixed and circulating capital coöperate in
+production, the latter, because it can be more easily withdrawn, but
+also more easily replaced, first takes out its own profit, that is the
+profit usual in the country and leaves all the rest to the former. When
+fixed capital is sold, practically no attention is paid to what it
+originally cost. The purchaser pays only for the prospective revenue it
+will yield, which he capitalizes at the rate of interest usual in the
+country. The seller henceforth looks upon his gain as an accretion to
+capital, his loss as a diminution of capital, and no longer as high or
+low interest.[181-5] That accretion might be considered the wages, paid
+once for all, for the intelligent labor which governed the original
+investment of the capital, and _vice versa_.
+
+     [Footnote 181-1: Thus the rate of interest in the Schappach
+     valley remained for a long time much lower than in the
+     vicinity, for the reason that the peasantry who had grown
+     rich through the lumber trade possessed notwithstanding
+     little of the spirit of enterprise. (_Rau_, Lehrbuch, I, §
+     233.)]
+
+     [Footnote 181-2: Here the law produces a species of
+     artificial fixation.]
+
+     [Footnote 181-3: _Von Mangoldt_, Unternehmergewinn, 150.]
+
+     [Footnote 181-4: In other words, the more fixed they are.
+     Thus, for instance, dwelling houses in declining cities,
+     canals, etc. which have been supplanted by better commercial
+     routes; or again, the shafts and stulms of a mine which has
+     been abandoned. When Versailles ceased to be a royal
+     residence, the value of inhabited houses sank to one-fourth
+     of what it had been. (_Zinkeisen_ in _Raumer's_ histor.
+     Taschenbuch, 1837, 426.) A rate of interest greater than
+     that usual in a country is seldom found where freedom of
+     competition prevails, since it is necessary there to
+     distinguish between rent and interest on capital. When in an
+     open city, the capital employed in the construction of
+     dwelling houses _detractis detrahendis_ pays 8 per cent.,
+     while the rate of interest customary in the country is only
+     4 per cent., the supply of houses will grow continually
+     greater. Only the difficulties in the way of transferring
+     capital from one business to another could here retard the
+     leveling process, which where the political prospect for
+     instance was bad, might last a long time--one of the
+     principal reasons why, in 1848, the rent of houses declined
+     much less than their purchase prices. The conjuncture was
+     not serious enough to prevent the increase of population;
+     but it entirely stopped the building of new houses. On the
+     other hand, a bridge or railroad company may maintain a high
+     rate of profit because competition cannot exist in the face
+     of the great expense such enterprises require; but
+     especially because the party who has here the advantage of
+     priority may lower the price of transportation to such a
+     point as to entirely discourage his rival. Compare
+     _Hermann_, Staatsw. Untersuchungen, 145 ff. Interesting
+     example of the London gas and water companies in _Senior_,
+     Outlines, 101.]
+
+     [Footnote 181-5: Thus, for instance, Leipzig-Dresden
+     railroad stock cost originally 100 thalers per share, and
+     was taken at that rate. The yearly dividends amounted in
+     1856 to 13 thalers; that is, 13 per cent. for the original
+     stockholders. But a person who on the 30th September, 1856,
+     paid 285 thalers for a share, received but an interest of
+     4½ per cent. on his capital. It is characteristic, how
+     _Serra_, Sulle Cause, etc., 1613, I, 9, calls the high and
+     the low rate of interest _prezzo basso e alto delle
+     entrate_.]
+
+
+SECTION CLXXXII.
+
+VARIATIONS OF THE RATE OF DISCOUNT.
+
+The fact that in commerce, etc., the rate of interest on capital loaned
+for short periods of time (discount) is subject to great fluctuations,
+while the mortgage rate of interest, for instance, remains the same
+throughout, depends on similar causes.[182-1] Yet there are
+contingencies in trade which, when taken immediate advantage of, promise
+enormous profits, but which may disappear within a month; risks of the
+most dangerous kind which can be conjured only by the immediate aid of
+capital. These are both sufficient grounds of a high rate of interest.
+Again, there are times of the profoundest calm in the commercial world,
+during which capitalists are perfectly willing to make loans at a low
+rate of interest, provided they are sure to be able to get back their
+capital with the first favorable breeze that blows. Agriculture is too
+immovable to come opportunely to the assistance of capitalists, here as
+a receiver and there as a loaner of capital. As the cycle of its
+operations is gone through usually only in a series of years, sudden
+influxes or outflows of capital would cause it the greatest
+injury.[182-2]
+
+     [Footnote 182-1: _Nebenius_, Œff. Credit, I, 74 ff. Thus,
+     Hamburg discount towards the end of the last century
+     fluctuated between 2½ and 12 per cent., while the capital
+     invested in agriculture brought an interest almost
+     invariably of 4 per cent. (_Büsch_, Geldumlauf, VI, 4, 19.)
+     At the same time, in Pennsylvania, the usual rate of
+     interest was 6 per cent. per annum, and the rate of discount
+     not unfrequently from 2 to 3 per cent. a month. (_Ebeling_
+     Geschichte und Erdbeschreib. von Amerika, IV, 442.) During
+     the crisis of 1837, it happened that ¼ per cent. a day was
+     paid. (_Rau_, Archiv. N. F. IV, 382.) In the Prussian ports,
+     during the crisis of 1810, it is said that in July the rate
+     of discount was 2½ per cent. a month. (_Tooke_, Thoughts
+     and Details, I, 111.) In Hamburg and Frankfort the rate of
+     discount rose in the spring of 1848, but declined in June to
+     2; until December it was 1¼, until the summer of 1849,
+     ¾ per cent. (Tüb. Zeitschr., 1856, 95.) Rate of discount
+     in France, about 1798, at least 2 per cent. a month.
+     (_Büsch_, loc. cit., IV, 52.) Half a year previous, capital
+     employed in the purchase of land paid an interest of from 3
+     to 4 per cent. Legal interest was 5 per cent.; discount, at
+     most, 6 per cent.; in very prosperous times 8-9, per cent.
+     (_Forbonnais_, Recherches et Considérations, I, 372.)]
+
+     [Footnote 182-2: Remarkable case in _Cicero's_ time in which
+     bribery, carried on on a large scale, raised the rate of
+     discount from 4 to 8 per cent. _Cicero_ ad. Quint. M, 15;
+     ad. Att. IV, 15.]
+
+
+SECTION CLXXXIII.
+
+EFFECT OF INCREASED DEMAND FOR LOANS.
+
+The price paid for the use of capital naturally depends on the relation
+between the supply and demand, and especially of circulating capital.
+The increase of the supply need no more unconditionally lower the rate
+of interest than the price of any other commodity. If 50 hunters kill
+1,000 deer yearly, and give 100 deer per annum as interest to the
+capitalists who provided them with ammunition and rifles, a second
+capitalist with an equal number of rifles and an equal amount of
+ammunition may appear on the scene. If now 2,000 deer a year are killed,
+the rate of profit of the capitalists will probably remain the same. But
+if the woods are not rich enough in game for this, or the hunters not
+numerous enough, too indolent, or too easily satisfied, the rate of
+interest falls.[183-1]
+
+The difficulties in the way of the desired increase of capital are here
+of great importance. The smaller the surplus over and above their
+absolutely necessary wants, which the people produce, the less their
+tendency to make savings, the less the inclination to capitalization;
+and the less the security afforded by the law is, the higher must the
+rate of interest be to induce people to face these difficulties. We may
+very well transfer the idea of cost of production to this
+condition.[183-2]
+
+The demand for capital depends, on the one hand, on the number and the
+solvability of borrowers, especially of non-capitalists like landowners
+and workmen; and, on the other hand, on the value in use of the capital
+itself. Hence the growth of population is, other circumstances being the
+same, a means to raise the rate of interest; because it infallibly
+increases the competition of borrowers of capital, even if the increased
+rate must take place at the expense of wages. The solvability or paying
+capacity of the land-owning class as contrasted with the capitalists
+can, in the last analysis, depend only on the extent and fertility of
+their lands and on the quality of their agricultural husbandry; the
+solvability or paying capacity of the working class, only on their skill
+and industry. Where these have grown, an increase of the rate of
+interest may be found in connection with an absolute growth of the rate
+of wages and of rent, because the aggregate income of the nation has
+become greater.
+
+The value in use of capital, which is more homogeneous in proportion as
+it has the character of circulating capital (_res fungibiles_) is, in
+most instances, synonymous with the skill of the working class, and the
+richness of the natural forces connected with it. The deciding element,
+therefore, is the yield of the least productive investment of capital
+which must be made to employ all the capital seeking employment. This
+least productive employment of capital must determine the rate of
+interest customary in a country precisely as cost of production on the
+most unfavorable land determines the price of corn (§§ 110, 150), and as
+the result of the work of the laborer last employed does the rate of
+wages. (§ 165.)
+
+What portion of the total national income, after deduction is made of
+rent, shall go to the capitalists and what portion to the working class,
+will depend mainly on whether the capitalists compete more greedily for
+labor or the laboring classes for capital.[183-3] If, for instance,
+capital should increase more rapidly than population, there must be a
+relative increase in wages, and _vice versa_.[183-4] This is true
+especially of that peculiar kind of higher wages which we shall (§ 145,
+ff.) designate as the "undertaker's profit." The smaller the number of
+persons engaged in enterprises is, in comparison with the number of
+retired persons who live on their rents, incomes, etc., the smaller is
+the portion of the so-called net profit of enterprise the latter must be
+satisfied with in the shape of interest.[183-5]
+
+     [Footnote 183-1: It is one of _Ricardo's_ (Principles, ch.
+     21) chief merits, that he demonstrated the groundlessness of
+     the opinion that the mere increase of capital must, on
+     account of the competition of capitalists, lower the rate of
+     interest, as is assumed by _Adam Smith_, I, ch. 9, _J. B.
+     Say_, Traité, II, 8, and others. Compare also, _John Stuart
+     Mill_, Principles, IV, ch. IV, 1.]
+
+     [Footnote 183-2: _Storch_, Handbuch, II, 20.]
+
+     [Footnote 183-3: Frequent withdrawals of capital must, other
+     circumstances being the same, temporarily raise the rate of
+     interest. In the long run, however, the question is decided
+     by this: whether public opinion considers labor a greater
+     sacrifice than the saving of capital. Compare _Roesler_,
+     loc. cit., 8.]
+
+     [Footnote 183-4: Compare _Hermann_, Staatsw. Unters., 240
+     ff. Very much depends on whether the new increased
+     consumption (of workmen when wages are rising, of
+     capitalists when wages are declining) is of goods which are
+     mainly the product of large capital, large factories, etc.,
+     or chiefly of common labor, (_von Mangoldt_, Grundriss, 155
+     seq.) When _Adam Smith_ suggests that the relation between
+     wages and the profit of capital is determined by this:
+     whether there is a market demand for more work or more
+     commodities, for more "work to be done" or "work done" (I,
+     ch. 7), he is, spite of appearances, very unsatisfactory.
+     _Malthus_ distinguishes a restrictive principle of the rate
+     of interest, viz.: the return made to the least productive
+     agricultural capital, and a regulative one, viz.: the
+     reciprocal relation between demand and supply of capital and
+     labor. (Principles, ch. 5, sec. 4.) _Ricardo_, ch. 6, makes
+     the profit of capital at all times and in every country
+     depend on the quantity of labor which it is necessary to
+     expend on the land which pays no rent, in order to satisfy
+     the wants of workmen--a very correct theory.
+
+     Only _Ricardo_ himself (ch. 21) and his school postulate
+     altogether too unconditionally that their wants would always
+     coincide with the minimum of maintenance or support. Thus,
+     for instance, _J. S. Mill_, Principles, IV, ch. 3, 4.
+     However, _Mill_ instead of _Ricardo's_ "wages" employs the
+     better expression, "cost of labor." _Senior_ teaches that
+     the distribution of the aggregate result between laborers
+     and capitalists depends on the anterior course of both
+     classes: on the value of the capital previously employed by
+     capitalists to produce the means of satisfying working men's
+     wants, and on the number of workmen which the previous
+     laboring population have brought into existence. (Outlines,
+     188 ff.) Concerning _von Thünen's_ vain attempt at a general
+     formula, see _supra_, § 173. _Fourier's_ idea that 5/12 of
+     the product should be distributed among labor, 3/12 among
+     talent, and 4/12 among capital, is entirely baseless. (N.
+     Monde, 309 ff.) _Considérant_, Destinée sociale, 192 ff. As
+     early a writer as _H. Boden_, Fürstliche Machtkunst, 1700
+     and 1740, 42, came strikingly near the truth. According to
+     him, a low rate of interest is produced by four
+     circumstances: surplus capital, a dearth of landed estates,
+     a want of credit and exact justice, and lastly, the heavy
+     taxation of capital.]
+
+     [Footnote 183-5: Thus, in the last century, Spanish
+     capitalists loaned capital readily to sure commercial
+     companies, at from 2 to 3 per cent. per annum. (_Bourgoing,_
+     Tableau de l'Espagne, I, 248.) The contemporary low rates of
+     interest in Hannover, _Büsch_, Geldumlauf, VI, 4, 12,
+     endeavors to explain by the absence of opportunities for
+     investment, as no one dared to loan to any extent on fiefs
+     or on the land of the peasantry, and because there was no
+     law governing bills of exchange, etc.]
+
+
+SECTION CLXXXIV.
+
+HISTORY OF THE RATE OF INTEREST.
+
+Among barbarous nations, the loaning of capital is wont to happen so
+seldom, and to be limited so strictly to near relations, that it does
+not yet occur to any one to stipulate for a regular compensation
+therefor.[184-1] But, however, when they pass from this state to
+interest proper, the rate must be, of course, very high.[184-2] The
+premium for insurance is here very great, the possibility and
+inclination to accumulate capital exceedingly small. Even of the
+existing supply of capital, a great part remains idle, because the
+faculty and the institutions necessary to concentrate it and permit it
+to flow are wanting. (§ 43.) The unskillfulness of labor is more than
+overcome by the excess of fertile and naturally productive land, of rich
+sites still unoccupied, the cream of which, as it were, needs only to be
+culled. Population is indeed sparse, but the usually prevailing absence
+of freedom of the lower classes prevents wages claiming the full benefit
+of competition.[184-3] This last circumstance is especially
+important.[184-4] For a given amount of the national income and of rent,
+every depression of wages must obviously raise the rate of interest, and
+every enhancement of wages lower it.[184-5]
+
+     [Footnote 184-1: _Tacit._, Germ., 26; _Marculf_, Form., 18,
+     25 ff., 35; _Savigny_, Ueber das altrömische Schuldrecht, in
+     the transactions of the Berlin Academy, 1833, 78 seq.]
+
+     [Footnote 184-2: According to the Lex Visig., V, 5, § 8, the
+     maximum rate of interest allowed on loans of money was
+     12½ per cent., and on other _res fungibiles_, 50 per
+     cent. From the 12th to the 14th century, the Lombards and
+     the Jews in France and England took generally (?) 20 per
+     cent. a year. (_Anderson_, Origin of Commerce, _a._, 1300.)
+     Philip V. of France, in 1311, fixed the rate of interest at
+     the fairs in Champagne at 15 per cent. (a species of
+     discount) at most, and at a maximum everywhere of 20 per
+     cent. (Ordonnances de la France, I, 484, 494, 508.) The
+     legal rate of interest in Verona, in 1288, was fixed at a
+     maximum of 12½ per cent.; in Modena, 1270, at 20 per
+     cent. (_Muratori_, Antiquitt. Ital., I, 894); in Bresica,
+     1268, at 10 per cent. (_v. Raumer_, Geschichte der
+     Hohenstaufen, V, 395 ff.) Frederick II. wished to reduce it
+     to 10 per cent. for Naples, but failed. (_Bianchini_, Storia
+     delle Finanze di Nap., I, 299.) The tables of _Cibrario_,
+     Economia polit. del medio Evo., III, 380, for 1306-1399,
+     show for upper Italy interest to have been at 20, 15, 14,
+     10, and also 5½ per cent. About 1430 the Florentines, in
+     order to moderate the enormously high rate of interest,
+     called Jews to their city, and the latter promised not to
+     charge over 20 per cent. (_Cibrario_, III, 318.) In the
+     Rhine country, the Kowerzens, during the 14th century, took
+     from 60 to 70 per cent., for which they had, however, to pay
+     a heavy tax to the archbishop. (_Bodmann_, Rh. Alterthümer,
+     716.) Of Jewish maximum rates of interest, in the 14th and
+     15th centuries, see _Stobbe_, Juden in Deutschland während
+     des M. Alters, 103, 110, 234 seq.; _Hegel_, Strassb. Chr.,
+     II, 977, 984.
+
+     The rate of interest usual in these countries must not
+     however be calculated from the data furnished by these
+     usurious rates and fixed rates of interest, simply. In
+     Germany, the rate of interest promised by princes in the
+     13th and 14th centuries was usually 10 per cent. The
+     Frankfort municipal loans made by Jews in the 14th century
+     bore interest at the rate of 9, 11-2/3, 13, 18, 26, and even
+     45 per cent. (_Kriegk_, F.'s Bürgerzwiste, 343, 539.) The
+     rate of interest in the purchase of annuities continually
+     declined between 1300 and 1500, especially in the time of
+     the emancipation of manual laborers. Old Base documents
+     give, between 1284 and 1580, as the highest rate, 11-3/9,
+     and as the least, 5 per cent. The latter became more and
+     more usual later, especially in the sale of house-rents
+     (_Hauszins_), so that in 1841 all annuities (_Renten_) might
+     be canceled by a payment of their amounts multiplied by 20.
+     Until the beginning of the 15th century, in the city, the
+     rule was 6 to 7 per cent.; outside of it, 8 to 10 per cent.
+     (_Arnold_, Geschichte des Eigenthums in den deutschen
+     Städten, 222 seq., 227 seq.) According to the Bremen Jahrb.
+     of 1784, 164 seq., the rate of interest in the case of
+     _Handfesten,_ in 1295, = 10 per cent., gradually sank: in
+     the 15th century it was never over 6-2/3; after 1450,
+     generally 5; in 1511 only 4 per cent. In 1441 ff., in
+     Augsburg, people were satisfied with a business profit of
+     7-2/3 per cent., while the usual rate of interest paid by
+     house-rent, etc. was 5 per cent. (_Hegel_, Augsb. Chr., II,
+     134 seq., 157.) Handsome tables in the rate of interest in
+     the purchase of annuities for all Germany, from 1215 to
+     1620, give as the rule, 7 to 10, scarcely ever over 15 per
+     cent., in _M. Neumann_, Geschichte des Wuchers, 266 ff. For
+     the upper Rhine, compare _Mone's_ Zeitschr., 26 ff. Among
+     the Fathers of the councils of Constance and Basil 5 per
+     cent. was considered equitable. Compare _F. Hammerlin_,
+     1389-1457, De Emtione et Venditione unius pro viginti.
+     Russian interest at 40 per cent., according to the laws of
+     Jaroslaw (ob. 1054 after Christ). _Karamsin_, Russ. Gesch.,
+     II, 47.]
+
+     [Footnote 184-3: The high rate of interest in many countries
+     at present may be thus accounted for. In the United States,
+     during the last century, less than 8 per cent. was seldom
+     paid. (_Ebeling_, III, 152.) According to _M. Chevalier_,
+     Lettres sur l'Amérique du Nord, 1836, I, 59, the rate of
+     interest in Pennsylvania was 6, in New York, 7, in most of
+     the slave states, 8-9; in Louisiana, 10 per cent. In South
+     Australia (1850) it was, with full security, 15-20 per cent.
+     (_Reimer_, Südaustralien, 39.) In the West Indies, about the
+     end of the last century, a strong negro might produce a
+     revenue equal to one-fourth of his capital value. (_B.
+     Edwards_, History of the British West Indies, II, 129.) In
+     Brazil, the lowest rate of interest was at 9 per cent., and
+     12-18 per cent. was nothing unusual. (_Wappäus_, M. and S.
+     Amerika, 1871, 1413.) In Cuba, for the government 10, for
+     private parties, 12 to 16 per cent. (_Humboldt_, Cuba, I,
+     231.) In Potosi, in 1826, Temple got 30 per cent. interest
+     on chattel mortgage, and from 2 to 4 per cent. a month was
+     offered, while the rate of interest in Buenos Ayres amounted
+     to 15 per cent. per annum. (_Temple_, Travels, II, 217.) In
+     Russia, _Storch_, Handbuch, I, 262, speaks of 8-10 per cent.
+     According to _v. Haxthausen_, it was, in the interior, never
+     less than from 8 to 12 per cent. per annum; at Kiew and
+     Odessa, 1¼, 1½ and 2 per cent. per month. (Studien, I,
+     58, 467; II, 495.) In _Greece_, the rate of interest on
+     first mortgages is at least 10, on a second, 15-18 per cent.
+     (Ausland, 1843, No. 82.)]
+
+     [Footnote 184-4: _Nebenius_, Œff. Credit, I, 55.]
+
+     [Footnote 184-5: Only in this particular instance is what
+     _Ricardo_ so frequently insists on true, viz: that the rate
+     of wages can be increased only at the expense of the profit
+     of capital, and _vice versa_.]
+
+
+SECTION CLXXXV.
+
+HISTORY OF THE RATE OF INTEREST.--INFLUENCE OF AN ADVANCE IN
+CIVILIZATION.
+
+With an advance in civilization, the rate of interest is wont to
+decline.[185-1] [185-2] One of the chief causes of this phenomenon is the
+necessity, as population and consumption increase, to employ capital in
+the fertilization of less productive land, and in less profitable
+investments.[185-3] An increase in the stock of money does not
+necessarily depreciate the rate of interest. If this increase comes in
+connection with a corresponding depreciation of the individual pieces of
+metal, it cannot be said that the nation has thereby become richer in
+capital. All that would be required in such case is only a greater
+number of pounds of gold or silver, or more paper bills to represent the
+same capital.[185-4] Only during the transition-period, during which the
+depreciation of money is still incomplete, is the rate of interest wont
+to be lowered; and all the more, since loaned capital is generally
+offered and sought after in the form of money.[185-5] [185-6]
+
+The decline of the rate of interest generally shows itself earliest in
+the large cities, which are everywhere the national organ, in which the
+good and bad symptoms of later civilization may be soonest
+observed.[185-7]
+
+Moreover, the condition of capitalists is not necessarily made worse by
+a decline of the rate of interest. It is possible that, for a long time,
+the increase of capital should continue more rapid than the decrease of
+interest for each individual. (If, indeed, the aggregate interest of
+capital should become absolutely smaller, there is always a pleasant
+remedy available, viz.: to consume a part of the capital!) But, however,
+a decline of the rate of interest is nearly always followed by increased
+activity on the part of capitalists; and they come to the resolve to
+retire later to enjoy the results of their previous labors. In Holland,
+after the time of Louis XIV., no branch of business was wont to pay more
+than from two to three per cent. In the case of the purchase of land, no
+one calculated on more than two per cent. Hence it was scarcely possible
+for small capitalists there to live on their interest; and the good
+sense of the people so well adapted itself to this state of things that
+to live in leisure on one's rents was considered a not entirely
+honorable mode of existence.[185-8] The lower the rate of interest, the
+larger, in highly civilized countries, is the stock on hand of cash apt
+to become, for the reason that business men then hope to gain more by
+the advantages of cash payments than by the saving of interest.[185-9]
+[185-10]
+
+     [Footnote 185-1: _Proudhon's_ idea, that this decline might
+     at last bring about a total abolition of interest, is based
+     on the same error as this other: that since a man may keep
+     diminishing his per diem quantum of food, he might finally
+     dispense with food altogether. _Proudhon's_ Banque du
+     Peuple--People's Bank--which, by gradually diminishing the
+     interest on its loans to the minimum cost of its
+     administration, should compel other capitalists to follow
+     its example.]
+
+     [Footnote 185-2: Thus, in England, by virtue of 37 Henry
+     III., c. 9, the legal interest was = 10 per cent.; by 21
+     James I, c. 17 = 8; about 1651 = 6 per cent. (confirmed in
+     1660); by 12 Anne, ch. 16 = 5 per cent. In the time of
+     George II., where the security was good, only 3 per cent.
+     was, as a rule, paid. In France, the legal rate of interest,
+     at the beginning of the 16th century, was 1/10 of the
+     capital; after 1657, 1/12; 1601 (_Sully_), 1/16; 1634
+     (_Richelieu_), 1/18; 1665 (_Colbert_), 1/20. Compare
+     _Forbonnais_ Recherches et Considérations, I, 48, 225, 385
+     ff. It continued at this rate of 5 per cent. with short
+     interruptions until the revolution. (_Warnkönig_, Franz.
+     Staats. und Rechtsgeschichte, II, 588 seq.)
+
+     The rates of interest in Russia, in the 16th century, had
+     already declined to 20 per cent. (_Herberstein_, Reise, 41
+     ff.; _Karamsin_, Russ. Geschichte, VII, 169.) In Holland, in
+     1623, it was estimated that land purchases paid 3 per cent.;
+     hypothecations, 4 to 6; deposits, 5 to 6; a flourishing
+     business, 10 per cent. Compare _Usselinx_ in _Laspeyres_,
+     Geschichte der volkswirthschaftl. Anschauungen der
+     Niederländer, 76. About 1660, the rate of interest usual in
+     Italy and Holland was at most 3 per cent. (in war times, 4);
+     in France, 7; in Scotland, 10; in Ireland, 12; in Spain, 10
+     to 12; in Turkey, 20 per cent. (_Sir J. Child_, Discourse on
+     Trade, French translation, 75 ff.) Side by side with 6 per
+     cent. as the rate of interest in England, it was (a little
+     later) 10 in Ireland. _Petty_, Political Anatomy of Ireland,
+     74.
+
+     The same course of things is to be observed in ancient
+     times. In _Solon's_ time, and again in that of _Lysias_, it
+     was 18 per cent. (_Böckh_, Staatshaushalt der Athener, I,
+     143 ff.) I am of opinion that the rate of interest declined
+     during this long interval, but rose again in consequence of
+     the Peloponnesian war. Among friends, in the time of
+     _Demosthenes_, 10 per cent. (adv. Onetor., I, 386.)
+     _Aristotle_, Rhet., III, 10, mentions 12 per cent., which
+     _Aeschines_, adv. Ctes., 104, and _Demosthenes_, adv. Aph.,
+     I, 820, 824, call low. The rate of commercial interest in
+     Egypt (146 before Christ) seems to have been 12 per cent.
+     per annum. (_Letronne_, Recompense promise à celui, etc.,
+     1833, 7.) Contemporaneously in Rome, a similar rate of
+     interest must have been considered usurious. (_Cicero_, ad.
+     Att., I, 12.) Under the emperor _Claudius_, 6 per cent.
+     (_Columella_, De Re rust., III, 3.) _Justinian_ allowed _to
+     personae illustres_ 4 per cent. per annum. (L. 26 Cod., IV,
+     32.)]
+
+     [Footnote 185-3: A Huron with his bow and arrow kills 12
+     pieces of game; the European, with a much better capital,
+     his rifle, only 5. Compare _v. Schözer_, Anfangsgründe, I,
+     28. _Mallthus_, Principles, ch. 5. According to _Ricardo_,
+     ch. 6, the decline of the rate of interest because of the
+     necessity of carrying on agriculture under harder
+     conditions, must make all capital of which raw material
+     forms a part more valuable; while the possessors of
+     money-capital particularly find no indemnification.
+     _Wakefield_, England and America, 1853, accounts for it by
+     saying that production, besides the coöperation of capital
+     and labor, needs "a field of employment;" and _Bastiat_,
+     Harmonies, ch. 5, 13, by saying that with the advance of
+     civilization, the results of former services lose in value
+     as compared with later ones, because performed under less
+     favorable circumstances.]
+
+     [Footnote 185-4: _D. Hume_, Discourses No. 4 On Interest.
+     Per contra, see _Locke_, Considerations of the Consequences
+     of the Lowering of Interest; _Law_, sur l'Usage des Monaies,
+     1697 (Daire); and _Montesquieu_, Esprit des Lois XXII, 6.
+     _Cantillon_ draws a very nice distinction: If the increased
+     amount _of_ money in a state comes into the hands of
+     loaners, it will decrease the current rate by increasing the
+     number of loaners; but if it comes into the hands of
+     consumers, the rate rises, because now the demand _for_
+     commodities is so much greater. (Nature du Commerce, 284.)]
+
+     [Footnote 185-5: The reviews in the Göttingen G. Anz., 1777,
+     and of _von Iselin_, in the Ephemeriden der Menschheit, II,
+     170 ff., 177, question _Adam Smith's_ (Wealth of Nat., II,
+     ch. 4) entirely too positive denial of the influence of the
+     American production of gold and silver on the diminution of
+     the rate of interest, a view which was shared also by
+     _Turgot_, Form. et Distr., § 78. See a beautiful comparison
+     between a declining of the prices of the currency which,
+     promotes production, with the phenomena attending the growth
+     of a tree, in _Schäffle_, N. Oek., II, Aufl., 249.]
+
+     [Footnote 185-6: Thus the rate of interest in Rome fell from
+     12 to 4 per cent. when Octavian suddenly threw the treasures
+     of conquered Egypt upon the market, and the price of
+     commodities only doubled. When later commerce had divided
+     this amount of money among the provinces, it rose again.
+     (_Sueton._, Oct., 41; _Dio C._, LI, 17, 21; Oros, IV, 19.)
+     _Law's_ emissions of paper, in colossal amounts, depressed
+     the rate of interest to 1¼ per cent. (_Dutot_, Réflexions,
+     990--Daire.) But as soon as the paper money had lost its
+     value, the former condition returned. Similar observations
+     in Rio de Janeiro: _Spix_ und _Martius_, Reise, I, 131.]
+
+     [Footnote 185-7: While in Paris the capital safely invested
+     paid 2½ to 3 per cent., 57 out of 61 _conseils généraux_
+     declared, in 1845, that the rate of interest on
+     hypothecations, in their departments, was always over 5 per
+     cent.; 17 estimated it at an average of from 6 to 7 per
+     cent.; 12 at from 7 to 10; some said 12 and 15, and even 22
+     per cent. in the case of small sums loaned for a short time.
+     (_Chegarny_, Rapport au Nom de la Commission de la Réforme
+     hypoth., 29 Avril, 1851.) In Russia, at the beginning of
+     this century, the rate of interest in the Baltic provinces
+     was 6 per cent.; in Moscow, 10; in Taurien, 25; in Astracan,
+     30 per cent. (_v. Schlözer_, Anfangsgründe I, 102.) In 1750,
+     in Naples, the rate of interest was from 3 to 5 per cent.,
+     in the provinces from 7 to 9 per cent. (_Guliani_, della
+     Moneta, IV, 1.) In Trajan's time in Rome, 6; in Bithynia, 12
+     per cent. (_Plin._, Epist. VII, 18; X, 62.)]
+
+     [Footnote 185-8: _Delacourt_ Aanwysing, 1669, I, 7.
+     _Temple_, Observations on the U. Provinces, ch. 6, Works L.
+     1854. Even _Descartes_ says of Holland's _ubi nemo non
+     exercet mercaturam_. Compare per contra, _H. Grotius_, Jus
+     Belli et Pacis, II, 12, 22. Very large capitalists, in
+     _Smith's_ time, certainly lived generally on the interest of
+     their money: Richesse de Hollande, II, 172. In England, at
+     the present day, likewise, a vast number of persons who live
+     on the interest of their money, occasionally take part in
+     the speculation in commodities; which explains why so-called
+     commercial crises are incomparably more extensive there, and
+     reach incomparably deeper, than in Germany. Similarly,
+     according to _Conring_, De Commercii, 1666, c. 36, in Venice
+     and Genoa.]
+
+     [Footnote 185-9: Hence the larger cash balances in England
+     at the present day, which, however, are not kept in the form
+     of coin, but of bank notes and bankers' deposits.]
+
+     [Footnote 185-10: As to how every frugal capitalist works to
+     the injury of capitalists as a class, but to his own
+     advantage, by lowering the rate of interest and increasing
+     the rate of wages, see _Senior_, Outlines, 188 ff.]
+
+
+SECTION CLXXXVI.
+
+HISTORY OF THE RATE OF INTEREST.--CAUSES OF A HIGH RATE IN THRIVING
+COMMERCIAL NATIONS.
+
+There are, however, even where a people's economy is in a flourishing
+condition, many obstacles which cause the decline of the rate of
+interest to take a retrogressive course, or which at least may delay it
+for a time.
+
+To this category belong all the modifications of a nation's economy
+alluded to in § 183.[186-1] Among them, therefore, is every extension of
+the limits of productive land. Let us suppose a nation which, its
+capital and labor remaining the same in every respect, should suddenly
+double its territory. The less productive places where investments were
+made in the old province are now abandoned, and labor and capital
+emigrate to the new. The result is, of course, an increase of the
+aggregate national income, and, at the same time, a decrease of rent. (§
+157.) Hence, the interest on capital and the wages of labor, taken
+together, must greatly increase. Which of these two branches shall
+profit most and longest by the increase will depend upon whether capital
+or the number of workmen increases most rapidly.[186-2] A similar effect
+must be produced when, by changes or modifications in the commercial
+situation, in the tariff, etc., a nation is enabled to obtain the means
+of subsistence at cheaper rates from more fertile and less settled
+countries.[186-3]
+
+The introduction of better methods of production has very different
+immediate consequences, according as these methods affect the
+commodities which minister to the wants peculiar to workmen as a class,
+or do not. Let us suppose, as a first case, that the cost of ordinary
+clothing is reduced one half by reason of newly discovered material,
+better machines, etc. As in the case of the whole people, so also in
+that of the owners of capital as consumers, there is, in consequence, an
+addition to their enjoyment of life. Their interest as well as their
+capital, compared with clothing material, would have become more
+valuable. But the relation between capital and interest, that is, the
+rate of interest, could not be directly changed. (Compare _infra_, note
+3.) Only when the working class employ their materially increased wages
+to increase population; when in consequence hereof, their wages,
+estimated in money, again decline beyond what it was before; when,
+therefore, the price of a given quantity of labor declines, does the
+rate of interest rise, although a portion of that which the workmen have
+lost may be added to rent on account of the increased population?[186-4]
+[186-5] If the applicability of the new method of production is confined to
+articles of luxury used by the upper classes, for instance to fine lace,
+the rate of interest usual in the country will be affected thereby only to
+the extent that through the medium of commerce such products are exchanged
+with foreign nations against commodities consumed by the working classes.
+But there are very few improvements in production which have not led to a
+greater cheapness of those things which satisfy the wants of the working
+class; and this is especially clear in the improvements in the means of
+transportation so usual in our day.
+
+However, the increase of fixed capital, such as machines, railroads,
+etc., once they are completed, may, at first, cause a depression of the
+rate of wages, as well as an enhancement of the rate of interest; the
+former from the fact that a number of workmen is thereby, at least
+temporarily, thrown out of employment; the latter because the conversion
+of so much circulating into fixed capital must diminish the supply of
+the former.[186-6]
+
+A second class of obstacles consists in the diminution of the supply of
+capital. War, for instance, always causes such a destruction of capital,
+and at the same time for the most part renders the reproduction of
+capital more difficult to such a degree that the rate of interest is
+wont to rise greatly.[186-7] Something similar is true of other great
+catastrophes and of extravagance on a large scale.[186-8] Every state
+loan, whether intended for direct consumption or to procure capital for
+use (_Nutzkapitalien)_, decreases the supply of circulating capital
+which most directly determines the market rate of interest.[186-9] [186-10]
+
+     [Footnote 186-1: _Wolkoff_ very well shows that the economic
+     progress of mankind is effected partly by the improvement of
+     production, and partly by saving. The former increases the
+     rate of interest, the latter lowers it. (Lectures, 182, 189.
+     Compare _supra_, § 45.)]
+
+     [Footnote 186-2: Thus the rate of interest in Russia rose,
+     after Catherine II. had conquered the provinces situated on
+     the Black Sea. (_Storch_, Handbuch, II, 34.) The same is
+     still more strikingly apparent in the judicious planting of
+     agricultural colonies.]
+
+     [Footnote 186-3: Abolition of the English corn laws! Foreign
+     commerce when very advantageous, always adds to the
+     well-being of the people; to the rate of interest, however,
+     only to the extent that articles which are calculated to
+     satisfy the wants of the working class become cheaper in
+     consequence; and this in turn lowers the rate of wages. Let
+     us suppose that a country had hitherto purchased yearly
+     10,000 barrels of wine for $1,000,000. It might now happen
+     that, in consequence of an advantageous commercial treaty,
+     for instance, the 10,000 barrels might be obtained for
+     $500,000. If, after this, wine-drinkers want to spend
+     $1,000,000 for wine as they did before, they of course
+     double their consumption of wine, but the rate of interest
+     remains unchanged. If, on the other hand, they leave their
+     consumption of wine where it was before and apply the saved
+     half million to effect an increased demand for home
+     products, the capital required for this production is set
+     free at the same time. Hence, the relation between the
+     supply and demand for capital has not changed, abstraction
+     made of certain difficulties in the transaction. Compare
+     _Ricardo_, Principles, ch. 7, rectifying _Adam Smith_,
+     Wealth of Nat., I, ch. 9.]
+
+     [Footnote 186-4: An increase in the rate of interest caused
+     by a diminution in the rate of wages does not last long.
+     Capital now increases more rapidly, and the increase is
+     accompanied by an increased demand for labor. If, in the
+     mean time, workmen have become accustomed to a lower
+     standard of life, the increasing wages are followed by an
+     increase of population: then the necessity of having
+     recourse to the cultivation of land of a worse quality is an
+     additional cause of a decreasing rate of interest. (Edinb.
+     Rev., March, 1824, 26.)]
+
+     [Footnote 186-5: According to this, it is easy to tell what
+     influence the increasing skill or activity of the working
+     class (for instance by a decrease in the number of holidays,
+     coöperation of wife and child) must have. Where there has
+     been no accompanying and corresponding elevation of the
+     standard of life, and of the want of the class, the gain
+     soon falls to the lot of the capitalists or landowners.]
+
+     [Footnote 186-6: See the very clear but not entirely
+     complete discussion in _John Stuart Mill_, Principles, IV,
+     ch. 3 ff. When new railways, machines, etc., before they are
+     complete, simultaneously increase the rate of interest and
+     the rate of wages, and even sometimes rent, although they do
+     not immediately increase the national income in any way, the
+     phenomena are to be explained, not by a distribution of
+     income, but as the result of an advance of capital made.]
+
+     [Footnote 186-7: Compare _supra_, § 184. The rise of the
+     rate of interest in Basil, between 1370 and 1393, _Arnold_
+     (loc. cit.) accounts for by the wars and defeats of the
+     upper German cities. Similarly in Zürich, 1457. (_Joh.
+     Müller_, Schweizer Geschichte, IV, 211.) During the time
+     immediately following the Spanish war of succession, the
+     _usuriers les flus modérés_ in France got 12-15 per cent. a
+     year. (_Dutot_, Réflexions, 1866.) In Russia the rate of
+     interest, after the war of 1805-15, rose by 4-5 per cent.
+     (_Storch_, Handbuch, 35 seq.) Per contra, _Nebenius_, Œff.
+     Credit., 70 seq.]
+
+     [Footnote 186-8: Thus the Hamburg conflagration, combined
+     with the bad harvests of 1841, raised the rate of interest
+     in Mecklenburg for a long series of years. Similarly in
+     Würtemburg, the many bad harvests from 1845 to 1853, which
+     are said to have caused a deficiency of 50,000,000 florins.
+     (Tübinger Zeitschr., 1856, 568.)]
+
+     [Footnote 186-9: In bad times, state loans are usually
+     effected at a disproportionally high rate of interest. This
+     also operates momentarily on the general rate of interest,
+     to the injury of persons engaged in business enterprises;
+     who, by the very fact of the withdrawal of so much capital,
+     become involved in an unfavorable competition. In the long
+     run, indeed, the high or low rates of interest paid by
+     national debts, in so far as the creditor cannot demand
+     reimbursement, has no influence on the rate of interest
+     usual in the country. Such debts as cannot be declared due
+     assume the character of stationary capital, the value in
+     exchange of which is determined by their yearly return,
+     capitalized at the rate of interest usual in the country.
+     (_Hermann_, Staatswirthschaftliche Untersuch., 223.)]
+
+     [Footnote 186-10: The coöperation of most of the causes
+     above mentioned raised the English rate of interest which
+     had sunk to 3 per cent. to an average of 5, from about 1760
+     to 1816. Thus _Gauss_, in a manuscript work which I have
+     used, relates that the fund for the support of professors'
+     widows in Göttingen was, in 1794, expected to pay only 3 per
+     cent. In 1799, the trustees observed that their capital
+     could often be safely invested at 4 per cent.; somewhat
+     later the rate of interest rose to 5 per cent., at which
+     point it remained for years. About 1843 ff. the rate of
+     interest in old Bavaria was only 4 per cent.; in more highly
+     cultured Rhenish Bavaria, 5 per cent.]
+
+
+SECTION CLXXXVII.
+
+HISTORY OF THE RATE OF INTEREST.--EMIGRATION OF CAPITAL.
+
+Midway between these classes of obstacles lies the very usual proceeding
+of highly civilized nations whose rate of interest is low, to transfer
+their capital into countries with a higher rate of interest, where the
+production of raw material is predominant.[187-1] This is most
+thoroughly accomplished by the emigration for good of the capitalists
+themselves; but also least frequently, because the natural attachment of
+man to his native country is usually too powerful, among the well-to-do
+classes, to be overcome by the attraction of a higher rate of interest.
+Temporary settlements in foreign countries are by far more frequent.
+Either the capitalist removes there himself, for a time, to return
+enriched, at farthest, in his old age; or he establishes a permanent
+branch of his business there, and superintends it through the agency of
+a trusted representative. The inhabitants of northern Italy, during the
+last centuries of the middle ages, maintained such establishments, not
+only for the purpose of carrying on commerce in merchandise along the
+shores of the Levant, but also the money trade in the principal
+countries of the west.[187-2] Similarly, the Hanseatic cities
+contemporaneously in the north and northeast of Europe; and, to-day, the
+English in almost all the important seaport cities in the world.[187-3]
+Such enterprises are always somewhat dangerous, especially in countries
+but little advanced in civilization.[187-4]
+
+The best means to facilitate the migration of capital is credit. It is,
+indeed, true, that in international trade, ordinary private loans are
+seldom made. To make such loans would be to run too many risks; risks
+through a want of knowledge of persons or circumstances, on account of
+the difficulties in the way of continued supervision, and of being able
+to assert and defend one's rights away from home.[187-5] Loans are much
+more readily made to foreign states, to great corporations, or
+joint-stock companies, whose condition is well-known; and which, by
+reason of their perpetuity, have a deep and obvious interest in
+maintaining an honorable reputation. The issuing of certificates of
+stock, etc., has greatly facilitated international trade in
+capital.[187-6] But the mode of loaning in foreign parts preferred is to
+sell them commodities, and to require payment for them only after some
+time has elapsed, of course, with interest. Purchases, on the contrary,
+are paid for immediately, possibly even in advance.[187-7] The lower the
+rate of interest in a country is, the longer and more cheaply can it
+give credit to others; a new reason why the less civilized countries are
+particularly fond of trading with the most civilized.[187-8] [187-9]
+
+     [Footnote 187-1: _Nebenius_, Der öffentliche Credit, 83 ff.
+     After the end of the Napoleonic war, English capital flowed,
+     by way of preference, towards South America, afterwards
+     towards Spain and Portugal; after 1830, to North America;
+     after 1840, towards Germany and France, to be invested in
+     the construction of railways in the latter countries.]
+
+     [Footnote 187-2: The inhabitants of Asti began in 1226 to
+     carry on the trade in money in trans-Alpine counties. In
+     1256, _Louis IX_. ordered 150 Asti money-changers to be
+     thrown into prison, and he confiscated the money they had
+     loaned in France, to the amount of over 800,000 livres. They
+     were afterwards turned over to their enemy, the Count of
+     Savoy, as usurers. (_Muratori_, Scr. Rerum Ital., XI, 142
+     seq.) About 1268, Louis IX. banished all money-changers of
+     Lombard or Cahors origin: they were allowed only three
+     months in which to collect their debts. (_Sismondi_,
+     Histoire des Fr., VIII, 112.) About 1277, again all Italian
+     money dealers were imprisoned, and 120,000 gold guldens
+     extorted from them. (_Giov. Villani_, VII, 52.) After the
+     Lombards had lost their freedom, the business passed into
+     the hands of the Florentines and of the inhabitants of
+     Lucca. (_Sismondi_, Gesch. der ital. Republiken, IV, 602;
+     _Dante_, Inferno, XXI, 38.) Great part played by the
+     brothers Franzesi as dealers in articles of luxury, and
+     loaners on pledge etc., at the court of Philip IV. They seem
+     to have instigated the persecution of other Italian money
+     dealers, in 1291, from jealousy. (_Sismondi_, Histoire des
+     Fr., VIII, 429 seq.) Great losses of the Florentines by the
+     English-French war in 1337: Edward III. remained in the debt
+     of his bankers Peruzzi and Bardi to the amounts respectively
+     of 135,000 and 184,000 marks sterling; so that they and many
+     others failed. France imprisoned all the Italian money
+     dealers, and compelled them to pay a large amount of
+     ransom-money. (_G. Villani_, XI, 71.) In 1376, the Pope who
+     was engaged in a struggle with Florence, called upon all
+     princes to despoil all Florentine merchants within their
+     jurisdiction of their wealth, and to sell them as slaves;
+     and France and England actually did so. (_Sismondi_,
+     Geschichte der ital. Republiken, V, 257 seq., VII, 74.)]
+
+     [Footnote 187-3: Shortly before the French Revolution, Cadiz
+     had over 50 wholesale merchants against 30 retail, 30
+     modistes and at least 100 tradesmen from France.
+     (_Bourgoing_, Tableau, III, 130.) Commercial colonies!]
+
+     [Footnote 187-4: Thus even the emperor Paul of Russia caused
+     the property of English factors to be confiscated. The
+     galleons which Holland and England captured in the Spanish
+     war of succession belonged mostly to Amsterdam houses.
+     (_Ranke_, Franz. Gesch., IV, 226.) Even _Galiani_, Della
+     Moneta, IV, 3, thinks that, on this account, such commerce
+     is incompatible with the warlike spirit. It is certain,
+     however, that a government like the English would do well
+     not to permit a war with such countries as Russia or the
+     United States to break out too suddenly, that their subjects
+     might have time to collect all their outstanding dues. When,
+     in 1855, it was reported in London that all Russian drafts
+     were dishonored, people looked upon that fact as the surest
+     sign of coming war. English merchants had called in their
+     advances to Russia during the preceding economic period, and
+     refused to make new ones.]
+
+     [Footnote 187-5: This of course disappears when the
+     borrowing country is dependent on the loaning country. Thus,
+     the Canton of Uri formerly prohibited the inhabitants of the
+     Livinerthal to borrow capital except from them. It is said
+     that, at the beginning of this century, the Uri capital then
+     loaned amounted to one-half a million florins, that is, an
+     average of 250 per householder. Now it is not over one-fifth
+     of that amount. (_Franscini_, Canton Tessin, 126.) Think
+     also of the plantation colonies! But even the East Indies
+     may be looked upon as a species of colony for England. Hence
+     _Fawcett_, Manual, 105, is rightly of the opinion that no
+     other country has the possibility of being as useful to the
+     East Indies as England. And in fact, the East Indian
+     railways obtained of their capital of £82,500,000, only a
+     very small part, £800,000, in India itself, a very small
+     proportion of which latter sum was subscribed by the native
+     population. (Ausland 24, Juli, 1869.)]
+
+     [Footnote 187-6: What England is to-day, the Italian
+     commercial cities were in the 16th and 17th centuries, viz.:
+     the chief market for foreign loans. (Compare _Mun,_
+     England's Treasure, 1664, ch. 4.) The Genovese loaned money
+     in foreign countries at 2 and 3 per cent. (_Montanari_,
+     Della Moneta, 1867, cap. 2.) It is said that the Dutch, in
+     1778 invested 1,500 millions of livres in foreign national
+     debts, especially those of France and England. (Richesse de
+     Hollande, II, 178.) According to _J. G. Forster_, Schriften,
+     III, 335, in 1781 alone, in Europe, 800 millions loaned
+     capital. The Niederl. Jaerboek of 1789, p. 729, estimates
+     the amount of interest coming from abroad, English and
+     French not included, at from 50 to 60 millions of florins.
+     About 1844, according to official estimates, 1,000 million
+     florins in foreign loans, that is one-third of whole
+     national income. (Allgemeine Zeitung, 1844, No. 35.) Now,
+     Belgium, 300 million florins, in Austrian evidences of
+     indebtedness. (Quarterly Review, October, 1862, 402.)
+     According to _Baumstark_, Staatswissensch. Versuche über
+     Staatscredit, etc., 1833, 77, foreign nations, between 1818
+     and 1825, borrowed in England £49,000,000; and, about the
+     same time, England participated in Russian, French and North
+     American loans to the extent of £55,500,000. It is said that
+     there were, in 1843, £25,000,000 English capital in the
+     canals, railroads and banks of the United States. (_Porter_,
+     Progress of the Nation, III, 4, 634.)]
+
+     [Footnote 187-7: It is evident, from many of Demosthenes'
+     orations on private matters, that Athens was in the habit of
+     advancing the commercial capital needed by a great part of
+     the inhabitants of the Mediterranean coast. Many colonial
+     cities, Phaselis, for instance, had the very worst
+     reputation in this respect. They were virtually pirates as
+     regards Athens. (Adv. Lacrit., 931.) Here also it seems that
+     the goods taken for the loan had to be brought to Athens.
+     (941.) On the regular advances of Prussian merchants to
+     their Lithuanian and Polish vendors, in the 15th century,
+     while the former were forbidden even to buy on credit, see
+     _Hirsch_, Geschichte des Danziger Handels, 167, 177. In
+     Colbert's time, the Dutch gave 12 months credit in Europe.
+     (_J. De Wit_, Mémoires, 184.) In England, _Child_ perceives
+     a great advance in this: that in 1650, in all business in
+     the interior, there was a credit of 3 to 18 months given;
+     and in 1669, everything was paid for in cash. (Discourse on
+     Trade, 45.) Concerning previous times, see _W. Raleigh_,
+     Observations touching Trade and Commerce with the Hollander
+     and other nations, 1603. (Works, VIII, 951 ff.) In North
+     America, merchants in the interior frequently purchase their
+     goods of importers on 6 months credit. (_Tellkampf_,
+     Beiträge, I, 52.) In the West Indies, about the end of the
+     last century, the English gave a credit, generally, of from
+     12 to 16 months. (_B. Edwards_, History of the British West
+     Indies, II, 383.) In Brazil, in the case of imports, 4, 8
+     and even 12 months credit; payment in monthly installments,
+     and frequently even longer delay, without interest. In the
+     case of exports, when cash payments are not made, 1 per
+     cent. a month, (_v. Reden_, Garn und Leinenhandel, 332.)
+     Recently only about 40 per cent. of foreign advances are
+     made at 12 to 20 months, 60 per cent. at from 50 to 70 days.
+     (Tübing. Zeitschr., 1864, 517.)
+
+     In Buenos Ayres, the producer or collector of export
+     articles required the price to be paid usually a long time
+     in advance (_habilitacion_), a very bold but necessary
+     procedure, on account of his poverty. (_Robertson_, Letters
+     on S. America, I, 174 ff.) In the corn trade in South
+     Russia, at least one-half of the purchase money was required
+     to be paid in advance, and even before shipment, the other
+     half as soon as the corn arrived in the harbor, and, hence,
+     sometimes, long before it was put on board. (_W. Jacob_, On
+     the Corn Trade of the Black Sea, 23.) Compare _Tooke_, View
+     of the Russian Empire, I, 339, Richesse de Hollande, II, 43,
+     _Storch_, Handbuch, II, 61 seq. Russia was, about 1770, a
+     credit-giving nation to the still poorer Persians.
+     (_Gmelin_, Reise, III, 413.) The Spaniards also, in their
+     American colonies, had always an expedition ready and
+     waiting, the payment for which was made on the arrival of
+     the second. (_Depons_, Voyage dans la Terre Firme, II, 368.)
+     Moreover, active commerce simply, especially when
+     circuitous, may be considered as in some way an
+     international loan; and thus it is that the favorable
+     "balance," by means of which claim-rights are obtained in
+     foreign countries, is secured.]
+
+     [Footnote 187-8: Notwithstanding the gratitude of the United
+     States towards France, and spite of all the French
+     ambassador could do, the English immediately after the
+     conclusion of peace, attracted the greatest part of American
+     trade to themselves. (_Chaptal_, de l'Industrie Fr., I,
+     103.) Countries with a low rate of interest have an
+     advantage in this respect, which grows after the manner of
+     compound interest, when the duration of the advance of
+     capital is prolonged. (_Senior_, Outlines, 195.)]
+
+     [Footnote 187-9: How capitalists may, by the giving of
+     international credit, fall into an injurious habit, is shown
+     by the late and troublesome building up of the Dutch railway
+     system, while so many foreign railway enterprises were
+     provided with Dutch capital.]
+
+
+SECTION CLXXXVIII.
+
+HISTORY OF THE RATE OF INTEREST.--EFFECT OF A LOW RATE ON STATIONARY
+NATIONS.
+
+Beneficial as the spur of a low rate of interest is for countries
+capable of development, it is a heavy drag on a stationary people, and
+more so on those who have lost a portion of the field for the investment
+of their capital by the competition of too powerful rivals.[188-1] A
+real superabundance of capital is attended with cares and temptations
+for the middle classes very similar to those caused by a so-called
+over-population, especially to dishonesty and extravagance.[188-2] When
+capital, population and the skillfulness of labor remaining the same,
+continues to increase, the enlarged capital may very readily have every
+succeeding year only the same return to divide among its owners, that
+the smaller had in previous years.[188-3] Hence additional saving here
+would produce no real enrichment of the people; and it might even happen
+that the instinct to accumulate capital might in the future become
+torpid to a greater degree than the capital itself had increased. In any
+case, however, the decline of the rate of interest can continue only to
+a certain point. There are numberless persons who would rather consume
+their capital, or invest it in hazardous speculations than put it out at
+interest at one per cent. a year.[188-4] At least, the tendency of a
+decline in the rate of interest is, in the case of the richer, to
+increase the amount of capital consumed as compared with productive
+capital. The more moderate, sober and provident a people are, the lower
+may the rate of interest decline without producing this effect. And so,
+the more the capital of a nation is concentrated in the hands of a few;
+because then the owners of capital are all the later forced to break in
+upon it, for the sake of subsistence.[188-5] [188-6]
+
+Among nations which have totally declined, the rate of interest is wont
+to reach a high point once more; the natural result of great losses of
+capital and men, while, at the same time, the freedom of the lower
+classes and the security of property have been either curtailed or lost.
+The weakness of age is, in many respects, even in the case of nations, a
+second childhood.[188-7]
+
+     [Footnote 188-1: _Temple_, Works I, 102, assures us that the
+     Dutch in his time considered the payment of the principal of
+     a public debt a real misfortune: "they receive it with
+     tears, not knowing how to dispose of it to interest with
+     such safety and ease." On Italy, see _Bandini_ (ob. 1760),
+     Sopra le Maremme Sienese, 154 seq.; earlier _Montanari_,
+     Della Moneta, 57. In the England of the present time, small
+     capitalists especially belong to the so-called "uneasy"
+     classes.]
+
+     [Footnote 188-2: Numberless bankrupts and unbounded
+     extravagance in Holland. (Richesse de Hollande, II, 168.) In
+     England, the hazardous enterprises of 1825 were very much
+     promoted by the action of the government which a short time
+     before reduced the interest on its state debt. (_Tooke_,
+     History of Prices, II, 148 ff.)]
+
+     [Footnote 188-3: _J. S. Mill_, IV, ch. 4, 4. When _Ricardo_,
+     ch. 6, says that every increase of productive capital must
+     enhance the value in use, and still more the value in
+     exchange, of a nation's property, but under such
+     circumstances only to the advantage of the working class,
+     and still more of the land owning class, he at least
+     apparently presupposes an improvement, or increase of
+     labor.]
+
+     [Footnote 188-4: Think only of the so-called commercial
+     crises, the speculation-rage preceding which is excited by
+     the lowness of the rate of interest, the destruction of
+     capital in which makes the rate of interest to retrograde
+     materially. However, this very decline is, in itself, only a
+     spur to speculation in evidences of national indebtedness,
+     stocks, etc., in commodities, only where, without such
+     speculation, a rise in prices was to be expected. Thus, for
+     instance, the great English periods of speculation: 1796
+     ff., in colonial products; 1808 ff., in raw materials in
+     general; 1814, in articles of export, were times in which
+     there was not the slightest facility in obtaining credit.
+     (_Tooke_, History of Prices, III, 159.)]
+
+     [Footnote 188-5: Between 1829 and 1849, the highest rate of
+     interest paid by English capital employed in cotton
+     industries was little over 2½ per cent. (Edinb. Rev.,
+     April, 1849, 429.)]
+
+     [Footnote 188-6: As the symptoms of a condition are very
+     frequently mistaken for its cause, there have been many
+     writers who, blinded especially by the contemplation of
+     Holland, considered the lowness of the rate of interest as
+     the _causa causans_ of all wealth, and who promised really
+     magical results from its legislative regulation by the
+     state. Thus _Sir Thomas Culpeper_, A Tract against the high
+     Rate of Usury, 1623; continuation 1630; _Sir J. Child_,
+     Brief Observations concerning Trade and the Interest of
+     Money, 1668; Discourse of Trade, 1690. _Anderson_ (ob.
+     1765), was of a similar opinion: Origin of Commerce, a.
+     1601, 1651; and even _Ganilh_, Dictionnaire analytique, 99
+     seq. (_Infra_, § 162.) Per _contra_, the anonymous essay,
+     Interest of Money mistaken, 1668, and _Locke_,
+     Considerations of the Consequences of the Lowering of
+     Interest and Raising the Value of Money, 1691. Most moderns
+     have considered the decline of the rate of interest an evil.
+     Thus, for instance, _Canard,_ Principes, ch. 5, who
+     uniformly makes this the starting point of a nation's
+     downfall. See also _McCulloch_, Principles, III, 8.
+     _Malthus_ draws a comparison between the saving of capital
+     and the generation of children: only a high rate of interest
+     makes the former really useful, and a high rate of wages the
+     latter.
+
+     Even great destruction and disturbances of capital by war,
+     by loans to the state, for instance, are soon made good,
+     provided the sources of the saving of capital are not dried
+     up. (Principles, III, 370 ff., 401, ff.) _John Stuart Mill_
+     expressly counsels rich and highly civilized nations not to
+     neglect beneficent enterprises, although economically
+     unproductive, because capital might be lost in them. The
+     result of such a loss would, under certain circumstances,
+     simply be that less capital would be exported or wasted in
+     speculation. (Principles, II, ch. 5, 1.) Similarly _Canard_,
+     who, therefore, compares state loans with blood-letting, as
+     a remedy for a plethoric disease. (Ch. 9.) _Turgot_
+     confounded cause and effect when he compared a high rate of
+     interest to an inundation, below the level of which nothing
+     can be produced; and which, the lower it became, the more
+     dry ground there was for men to work on. (Sur la Formation,
+     etc., § 89.)]
+
+     [Footnote 188-7: Rate of interest in Persia from 40 to 50
+     per cent. a year. (Ausland, 1844, No. 208.) In Tripoli,
+     Christians and Jews alike loan the Arabs at the rate of 5
+     per cent. a month; at least 1½ or 2. (_Rohlfs_, von
+     Tripolis nach Alexandrien, 1871, I, 22.) In most of the East
+     Indian kingdoms, the rate of interest is so high for the
+     government itself that when the creditor, even without a
+     return of the capital, gets the interest only for a few
+     years, he is considered passably well indemnified. (_J. S.
+     Mill_, II, ch. 15, 2.) In China, 12 to 15 per cent.; 36
+     nothing unheard of. (_Barrow_, China, 562.)]
+
+
+SECTION CLXXXIX.
+
+INTEREST-POLICY.--LEGITIMATENESS OF INTEREST.
+
+The legitimateness of interest is based on two unquestionable grounds:
+on the real productiveness of capital, and on the real abstinence from
+enjoyment of it by one's self.[189-1] Let us suppose a nation of
+fishermen with no private ownership in land and no capital, living naked
+in caverns, on sea-fish which the ebb of the ocean has left in the
+puddles along the shore, and which are caught only with the hand.[189-2]
+All workmen here may be equal, and each catch and consume three fish a
+day. Let us again suppose that some clever savage reduces his
+consumption to two fish a day, for one hundred days, and uses the stock
+of one hundred fish collected in this way to enable him to devote all
+his strength and labor, during fifty days, to the construction of a boat
+and a net. With the aid of this capital he, from the first, catches
+thirty per day. What now will his fellow tribesmen, who are not capable
+of such intelligent and systematic self control to do as he has done,
+do? What will they offer him for the use of his capital? In discussing
+this question both parties will very certainly consider not only the
+fifty days' labor spent in the construction of the boat, etc., but also
+the one hundred and fifty days during which its maker had to abstain
+from his full ration of food. If the borrower, of the thirty fish which
+may be caught daily with the aid of his capital, gives twenty-seven
+away, his condition is at least no worse than it was at first. On the
+other hand, the lender, if compensated only for the wear and tear of his
+capital, would reap no profit whatever from his loan. The interest to be
+paid will be fixed somewhere between these two extremes by the relation
+between demand and supply. A loan which pays no interest is a donated
+use of capital. (_Knies._)[189-3] Interest may be called the reward of
+abstinence (_Senior_), in the same way as wages is called the reward of
+industry.[189-4] With the abolition of interest, exchange would be
+limited to the mere present, without any mediation between the past and
+the future. A great number of services would bring no equivalent in
+return, and, therefore, as a rule, never be performed. Most of the
+charges commonly made in our day against the "tyranny of capital" are,
+at bottom, only a complaint that capital is not inexhaustible; and even
+those workmen who are obliged to pay most to capital would be much worse
+off without it.
+
+     [Footnote 189-1: The Greeks very appropriately call interest
+     τόκος, i. e., that which is born. In the loaning of capital
+     productively invested, the creditor, in the interest
+     received, consumes the real produce of his property. If the
+     debtor has consumed the property unproductively, the
+     creditor indeed lives on the debtor's other returns or
+     supplies; which, however, without his intervention would
+     probably have been consumed by their owner.]
+
+     [Footnote 189-2: We here, for the time being, make
+     abstraction of all entangling surrounding circumstances.
+     However, _Diodor._, III, 15 ff., and _Strabo_, XVI, 773,
+     describe a very similar condition of things among the
+     Ichthyographs; also _Hildebrand_, Reise, um die Erde, III,
+     2, in China. In the Sudan, whole generations fetch water
+     every day from a distant town, instead of working for a few
+     weeks to dig a deep well nearer home. (_Barth_, Afr. Reise,
+     III, 297.)]
+
+     [Footnote 189-3: The most recent relapse into the old error
+     of the unproductiveness of capital, viz.: that of _Karl
+     Marx_ (Das Kapital; Kritik der polit. Oekonomie, I, 167) is a
+     turning round and round of the author in the vicious circle
+     of his demonstration. If the value of every commodity
+     depends simply on the labor necessary to bring it into
+     existence, or on the time of labor required to produce it,
+     it is self-evident that the value of the capital consumed
+     for the purpose of its production, can at most be only
+     preserved in the new product, and that all the additional
+     value (_Mehrwerth_) of the latter should be ascribed to
+     labor. (172, and passim.) Hence, strictly speaking, the
+     capitalist who advances capital to workmen, is still bound
+     in duty to be grateful to the latter when the value of his
+     advance is preserved to him undiminished, (§ 173) and all
+     interest levied by him should be considered as a payment
+     towards the extinguishment of the capital [debt] itself.
+     (556.) Relying on such theories, many socialists admit
+     private property and even the right of inheritance to means
+     of enjoyment and use capital (_Gebrauchskapitalien_)
+     provided only that land and productive capital should pass
+     over into the "collective property" of society, with
+     compensation, however, to their former owners. Considering
+     the short duration of most goods used in enjoyment or
+     consumed, the evil consequences of a community of goods
+     mentioned in § 81, could not be avoided to any extent by
+     this means.
+
+     How entirely fallacious the above assumption is, is seen
+     most strikingly in the case of such goods as cigars, wine,
+     cheese, etc., which, without the least addition of labor, by
+     merely postponing the consumption of them, obtain a much
+     larger value both in exchange and in use. Or, how would it
+     be possible, for instance, to reduce the value of a
+     hundred-year-old tree, over and above the cost of planting
+     it, to labor alone? Similarly, the fact that on a Chilian
+     _hacienda_, 25 per cent. of the cattle can be slaughtered
+     and no diminution of the herd take place. (_Wappäus_, M. und
+     S. Amerika, 784.) _Strassburger_ rightly inquires: if all
+     the profit of capital is based on a cheating of workmen by
+     capitalists, who is cheated in the case in which a
+     manufacturer without workmen earns more with an increased
+     capital than before with a small capital? (_Hildebrand's_
+     Jahrb., I, 103.)]
+
+     [Footnote 189-4: In a time full of nabobism and pauperism,
+     when some can, without the least abstinence, make immense
+     savings, and others none at all even with the greatest
+     abstinence, we may comprehend where the socialists find food
+     for their derision of the expression, "reward of
+     abstinence."]
+
+
+SECTION CXC.
+
+INTEREST-POLICY.--AVERSION TO INTEREST.
+
+At the same time, there is a strong aversion to the taking of interest
+prevalent among nations in a low stage of civilization. Industrial
+enterprises of any importance do not as yet exist here at all, and
+agriculture is most advantageously carried on by means of a great many
+parcels of land, but with little capital. The purchase of land is so
+rare, and hampered by legal restrictions to such a degree, that loans
+for that purpose are almost unheard of. And just as seldom does it
+happen, by reason of the superabundance of land, that the heir of a
+landowner borrows capital to effect an adjustment with his co-heirs, and
+thus enter alone into the possession of the estate. Here, as a rule,
+only absolute want leads to loaning.[190-1] If, in addition to this, we
+consider the natural height of the rate of wages in such times, the
+small number and importance of the capitalist class (§ 201), the tardy
+insight of man into the course and nature of economic production,[190-2]
+it will not be hard to understand the odium attached in the middle age
+of every nation to so-called interest-usury[190-3] (_Zinswucher_).
+
+Most religions, the Christian excepted (the universal religion!), have
+been founded in the earlier stages of the nations who profess them, and
+have there, at least outwardly, exercised their greatest influence. No
+wonder, therefore, that so many religions have prohibited the taking of
+interest. Thus, for instance, the Jewish which, indeed, allows interest
+to be taken from foreigners, but raises loaning without interest among
+Jews in their commerce with one another, to the dignity of a duty
+binding on the conscience of the beneficent rich.[190-4] [190-5]
+Similarly in the Koran.[190-6] The Fathers of the Church, also, on the
+whole, look with disfavor on the taking of interest, relying upon
+well-known passages in the Old Testament, and, in part, on misunderstood
+expressions in the New.[190-7] This is especially true of the Fathers of
+the Church from the beginning of the fourth century, when the Roman
+empire was frightfully impoverished by the devastations of the
+barbarians, and as a consequence the conditions as to interest which
+prevail in the lowest stages of civilization had returned. Mercy towards
+the poor usually occupies the foreground in the demonstrations of the
+Fathers.[190-8]
+
+     [Footnote 190-1: Distress-debts in contradistinction to
+     acquisition-debts. (_Schmalz_, Staatswirthsch. Lehre in
+     Briefen, I, 227.) Compare _Hesiod._, Opp., 647; also
+     _Herodot._, I, 138.]
+
+     [Footnote 190-2: Thus _Aristotle_, calls the taking of
+     interest a gain against nature, since money is only a medium
+     of exchange, and cannot produce its like. (Polit., 3, 23,
+     Schn.) Similarly, _Plato_, De Legg., V, 742, and _Seneca_,
+     De Benef., VII, 10. Compare, however, _Tacit_., Annal, XIII,
+     42 seq. As late a writer as _Forbonnais,_ 1754, accounts for
+     interest thus: Some people hoard their money instead of
+     spending it; hence a scarcity or want of money, and those
+     who need it are obliged, in order to draw it out, to promise
+     to pay interest. (Eléments de Commerce, II, 92 ff.)]
+
+     [Footnote 190-3: Numerous disturbances on account of debt,
+     during the first centuries of the Roman Republic, until
+     finally (compare _Livy_, VII, 42), the taking of interest
+     was in the year 349 (?) before Christ, entirely prohibited.
+     (_Tacit._, Annal. VI, 16.) The public opinion in such
+     matters may be understood from the words of Cato: _majores
+     ita in legibus posuerunt, furem dupli condemnari,
+     foeneratorem quadrupli_. (De Re rust.) The _foenerari_
+     compared with the _hominem occidere_. (_Cato_, in _Cicero_,
+     De Off., II, 25.) In the higher stages of civilization
+     little heed was paid to the law, in practice (compare
+     _Livy_, XXXV, 7; _Plut._, Cato, I, 21.), although the
+     democratic party always held fast to the legal perpetuation
+     of the prohibition of interest. (_Mommsen_, Römisch. Gesch.,
+     III, 493.)]
+
+     [Footnote 190-4: Exod., 22, 25; Levit., 25, 35 ff.;
+     Deuteron., 15, 7 seq.; 23, 19 seq.; Psalms, 15, 5; 109, 11;
+     112, 5; Proverbs, 28, 8; Jerem., 15, 10; _Hes._, 18, 8.
+     After the return from exile, the prohibition was restored.
+     (Net. 5, 1 ff.) Was there, in the long duration of such
+     prescriptions, an educational measure having reference to
+     the peculiar fault towards which the Jewish national
+     character had a special tendency? In Josephus's time even,
+     usury practiced on one's country people was universally
+     despised (Antiq. Jud., IV, 8, 25.), and the Talmud continues
+     it. Compare _Michaelis_, De Mente ac Ratione Legis M. Usuram
+     prohibentis. In Russia, the orthodox Jews are wont to evade
+     the legal rate of interest by exacting one-half the profit,
+     and estimating it approximately in advance at a probable
+     sum. If, afterwards, the debtor declares under oath that he
+     made no profit, the creditor has no more to say; but then
+     the borrower would lose all credit in the future. (_Bonav.
+     Mayer_, Die Juden unserer Zeit, 1842, 13 seq.)]
+
+     [Footnote 190-5: The Mosaic passages, however, only prohibit
+     the taking of interest from poor people of one's own
+     country.]
+
+     [Footnote 190-6: The prohibition in the Koran, ch. 2, 30, is
+     regularly evaded in Persia, by deducting the proper amount
+     at the moment the loan is made. (_Chardin_, IV, 157 ff.)
+     Under the Mongolian rulers, it was done by way of
+     preference, by a fictitious sale for cash, at prices out of
+     all proportion. "Why cannot capitalists either buy land or
+     carry on trade?" asked Sultan Gazan, on an occasion when the
+     prohibition of interest was strongly insisted on.
+     (_d'Ohsson_, Histoire des Mongols, IV, 397.)]
+
+     [Footnote 190-7: For instance, _Luke_, 6, 34 ff., where
+     interest is no more prohibited than in _Luke_, 14, 12 ff.,
+     the mutual invitation of friends to a feast. Not less
+     groundless is the supposed allegorical allusion (_Matthew_,
+     21, 12) to interest-creditors. Rather might an approval of
+     interest be inferred from _Matthew_, 25, 27.]
+
+     [Footnote 190-8: _Origen_, for instance, would have the
+     creditor take no interest; but exhorts the debtor to return
+     double the amount unasked. (Homil., III, ad. Ps., § 37.)
+     Hence there is here no condemnation of interest, but only an
+     effort to transform all legal relations into relations of
+     love. Quite the reverse in _Lactant._, Instit., VI, 12;
+     _Basil_, ad. Matth., 5 ff.; _Ambrose_, De Off., III, 3;
+     _Chrysost._, ad. Matth. Hom., 56; Tim., VII, 373 ff. (Paris,
+     1727); _Hieronym._, ad. Ezech., V, 367 c. (Francof, 1684);
+     _Augustin._, Epist., 54. Even _Cyprian_, 183, 318 (Paris,
+     1726).]
+
+
+SECTION CXCI.
+
+INTEREST-POLICY.--THE CANON LAW, etc.
+
+The canon law, from the first, endeavored to prevent contracts for
+interest. We may even say that the prohibition of interest-usury is the
+key-stone of the whole system of the political economy of the _Corpus
+Juris Canonici_. The development of that law coincides, as to time, with
+the senility of the Roman Empire and the childhood of modern
+nations.[191-1] In the golden age of papal power, every
+interest-creditor was refused the communion, the _testamenti factio_ and
+the right of ecclesiastical burial. Proceedings at law could not be
+instituted for the recovery of the principal debt until the creditor had
+restored all the interest obtained. In the council of Vienna, in 1311,
+it was declared heresy to defend the taking of interest. The universal
+antipathy of the church towards the growing importance of the
+_bourgeoisie_,[191-2] and the desire to give the spiritual courts an
+extensive jurisdiction in litigated cases, may have contributed largely
+to the adoption of these measures. In later medieval times, the secular
+power offered its services to execute these laws;[191-3] and, to judge
+of what public opinion in this matter was, we need only call to mind the
+decided disapproval of interest by Dante, Luther and Shakespeare.[191-4]
+
+The _Weddeschat_, a species of pledge or loan on security, constituted
+the transition from this state of things to the modern economic system
+of interest. The _Weddeschat_ was a sale with a reserved right of
+redemption, by which the debtor gave his creditor the use and enjoyment
+of a piece of land a sort of interest in kind, but which he could at any
+time recover back, by payment of the principal. This was not very
+oppressive on the debtor, as he was the only party who could recall the
+contract.[191-5] In a higher stage of civilization, indeed the
+continuance of this species of land-pledge would be exceedingly
+disadvantageous, since the momentary possessor of a piece of land which
+might be bought back by another person at any time at a price fixed in
+advance, would scarcely think of improving it.[191-6]
+
+And so, the introduction of rent-purchase (_Rentekauf_) was an important
+step in advance: the incumbrancing of a piece of land which remained in
+the possession of the debtor with an interest in kind paid to the
+creditor. The latter could never claim anything further, while the
+debtor and his heirs might redeem the land from this interest-incumbrance
+by paying back the purchase money.[191-7] As the Pope, on the 19th of
+January, 1569, renewed, in express terms, the prohibition of all interest
+not based on rent-purchase, so did the police ordinances of the Empire, of
+the sixteenth century, declare it to be the only lawful form of loaning at
+interest; provided, always, that only the debtor could demand the
+cancellation of the contract.[191-8] We find, however, that, on the whole,
+at least Protestant countries had, before 1654, adopted the modern Roman
+law relating to interest.[191-9] [191-10]
+
+However, the long persistence of the prohibition of the canon law in
+relation to interest, even with the refuge afforded by the introduction
+of the rent-purchase system, and of dormant partnerships (_Commanditen_)
+etc., so common in the sixteenth century,[191-11] would be
+unintelligible, if, contemporaneously, the Jews did not carry on an
+important and somewhat free trade in capital,[191-12] precisely as the
+Armenians, Hindoos and Jews do in the Mohammedan world of to-day.
+
+     [Footnote 191-1: The apostolic canons and several decrees of
+     councils of the fourth century prohibit the taking of
+     interest by the clergy. A Spanish provincial council dared,
+     in 313, to extend the prohibition to the laity. Pope Leo I.
+     condemned the taking of interest by the laity also, but only
+     in the form of a moral law. (443.) The synod of
+     Constantinople (814) punished the violation of the
+     prohibition with excommunication. See _Thomas Aquin._ (ob.
+     1274.) De Usuris, in the Quæstiones disputatae et quod
+     libetales. The canon law, however, always permitted
+     delay-interest (_Verzugszinsen_), and Gregory IX, allowed
+     _justa et moderata expensa et congruam satisfactionem
+     damnorum_ to be taken into account, (c. 17, X.) De Fora
+     Comp. II, 2. A tacit recognition of the productiveness of
+     capital is to be found in c. 7, X. De Donatt. inter. Virum.
+     cett. IV, 20; and the later schoolmen, _Antonin_ and
+     _Bernhardin_, (ob. 1459 and 144) are pretty clear on the
+     point. But _Albertus Magnus_ had already recognized the
+     _damnum emergens_ and _Thomas Aquinas_ the _lucrum cessans_
+     as causes of interest. (Tübinger Zeitschr., 1869, 151, 159,
+     161.) The essentially modern character of Roman law, which,
+     in the form it has finally assumed, is in harmony with a
+     high development of national economy, accounts for the fact
+     that the glosse of _Accursius_ relying on _Irnerius_ and
+     _Bulgarus_ entirely ignores the prohibition of interest. For
+     a similar reason, in the 16th century, _Donellus_ and
+     _Cujacius_ stand entirely on Roman ground. In the interval,
+     indeed, men like _Bartolus_ and _Baldus_ were not disquieted
+     by the canon law. (_Endemann_, Studien in der
+     Römisch-Canonischen Wirtchaftsund Rechtslehre, I, 18, 27
+     seq. 61.) Compare the rich historical material in
+     _Salmasius_, De Usuris, 1638; De Modo Usurarum, 1639, and De
+     Mutuo, 1640.]
+
+     [Footnote 191-2: _A. Thierry_, Lettres sur l'Histoire de
+     France, éd. 2., 248 ff.]
+
+     [Footnote 191-3: Thus the emperor Basil, in the year 867, as
+     _Justinian_ had before him, forbade the further payment of
+     interest, once the amount already paid equaled the
+     principal. (L. 29 seq.; Cod. IV, 32, Nov., 121, 2.) Compare
+     Sachsenspiegel, I, 54. _Edward the Confessor_ is said to
+     have issued the first prohibition of interest. (_Anderson_,
+     Origin of Commerce, a. 1045.) _Edward III._ forbade all
+     interest as the ruin of commerce. (Idem a., 1341.) About
+     1391, the lower House had its zeal aroused against the
+     "shameful vice of usury;" and again, in 1488, all interest
+     on money and all rent-purchases stipulated for on unlawful
+     conditions, were threatened with a fine of £20, the pillory,
+     and six months imprisonment. (_Anderson_, a., 1488.) In
+     France, the edict of Philip IV. of 1312. Compare
+     _Beaumanoir_, Coûtumes, ch. 67, des Usures, No. 2.]
+
+     [Footnote 191-4: _Dante_, Inferno, XI, 106 ff., suggests
+     that interest-creditors had violated the command of _Moses_,
+     I, 3. _Macchiavelli_ seems to judge otherwise: Compare
+     Istoria Fior., VII, a, 1464; VIII, a, 1478. Very interesting
+     discussions on the legitimateness of the taking of interest
+     in 1353 seq., in which the Dominicans, up to the time of
+     _Savonarola_, defended the strictest opinion. (_M. Villan_,
+     III, 106.) _Luther_, Tract on Trade and Money, 1524, and
+     Sermon on Usury, 1519. Later still, _Luther_ became more
+     moderate. Thus, in his letter to the Danzig counsel, 1525,
+     in _Neumann_, Geschichte des Wuchers in Deutschland, 617
+     ff., in which, for instance, he blames the forcible carrying
+     out of interest-prohibitions, draws a distinction between
+     rich and poor, etc. So, too, in his letter: An die
+     Pfarrherren, wider den Wucher zu predigen, 1540.
+     _Melanchthon_, Phil. moral., 137 ff., is also more moderate.
+     _Calvin_ was clearer in this matter, and no longer
+     recognized the canonical prohibition of interest. (Epistolæ
+     et Responsa, Hanov., 1597, epist. 383.) Similarly
+     _Zwinglius_, who will not praise interest, but considers it
+     a natural consequence of property (Opp. ed. Tugur., 1530, I,
+     319 ff.), and even _Erasmus_, ad. Evang. Luc., 6, 44. Adagia
+     v. Usuræ nautt. In _Shakespeare_, compare Merchant of
+     Venice. _Bodinus_ also rejects on principle, even Roman
+     interest, which he held to be 1½ per cent. a year: De
+     Republ., 1584, V. 2. Even the practical Dutch excluded the
+     so-called "table-keepers," from the communion up to 1657.
+     Compare the contests hereon in _Laspeyres_, Gesch. d.
+     volkswirthsch. Ansich. d. Niederl., 258 ff.]
+
+     [Footnote 191-5: The mutual right of cancellation
+     (_Kündbarkeit_) in the case of these contracts during
+     periods poor in capital and credit, would easily have ruined
+     the debtor. Compare _J. Möser_, Patr. Ph., II, No. 18. Hence
+     municipal rights in the latter part of the middle ages,
+     which in many other respects are so antagonistic to Rome,
+     have seldom anything to object to its measures in this
+     matter.]
+
+     [Footnote 191-6: A reason why, as _A. Strüver_ remarks, the
+     Church which was more a creditor than a debtor, never
+     approved the Weddeschat above mentioned.]
+
+     [Footnote 191-7: The institution of rent-purchase
+     (_Rentekauf_) was already developed in the Hanse cities at
+     the beginning of the fourteenth century. (_Stobbe_, in the
+     Zeitschr. f. deutsches Recht, XIX, 189 ff.) About 1420, the
+     bishops of Silesia inquired of the Pope, whether such
+     contracts which had been the practice in Silesia for a
+     century were lawful. The answer was a favorable one,
+     although he left the rate of interest free in this
+     particular case (Extr. Com. III, 5, 1, 2); after _Alexander
+     IV._, however, as early as 1258, had instructed inquisitors
+     not to take part in litigations concerning usurious
+     contracts. Formerly all such contracts were prohibited in
+     express terms. (Decret. Greg., V. 19, 1, 2), although, in
+     France, the ordinances of Louis IX. and Louis X. (1254 and
+     1315) had established fixed rates of interest therefor.
+     Between pledge and rent-purchase, the right of the (virtual)
+     loaner to expel the (virtual) borrower, which after fell
+     into disquietude, occupies, so to speak, a middle place.
+     (Compare _Eichhorn_, D. St.- und R.-Gesch., II, § 361, a
+     III, § 450.) It was decreed, in France, in 1565, that all
+     rent in kind should be converted into money rent.
+     (_Warnkönig_, Franz., St.- und R.-Gesch., II, 585 ff.)]
+
+     [Footnote 191-8: Magnum Bullar. Roman., II, 295.]
+
+     [Footnote 191-9: A Prussian law allowing interest even
+     without a contract of rent-purchase as far back as 1385.
+     (_Voigt_, Geschich. von Preussen, V, 467.) In Marseilles, in
+     1406, a rate of interest of ten per cent. allowed.
+     (_Anderson_, Origin of Commerce, s. a.) Likewise in England,
+     37 Henry VIII., c. 9. In Brandenburg, 1565, 6 per cent.
+     (_Mylius_, C. C., March, II, 1, 11.) A retrograde step by 5
+     and 6 Edward VI., c. 20; by which all interest was again
+     prohibited. These laws had, practically, the effect of
+     increasing interest to 14 per cent., and were therefore
+     repealed in 1571. How unnatural the prohibition was is
+     apparent from the fact that by 4 and 5 Philip and Mary, c.
+     2, the possessor of 1,000 marks was estimated equal to a
+     person with £200 annual income. In Denmark, the taking of
+     interest at 5 per cent. was allowed in 1554, since "although
+     it is contrary to God's command, yet [according to an
+     opinion given by _Melanchthon_] this commerce cannot be
+     entirely abolished." (_Kolderup-Rosenvinge's_ Dänische R.
+     G., in _Homeyer_, § 142.) Similar views of the elector
+     Augustus, 1583. (Cod. August 1, 139 ff.)
+
+     The German Empire, in 1600, allowed the debtor to contract
+     that, in case of delay, the contract might be declared
+     annulled. In France, on the other hand, even during the 18th
+     century, nearly all loans were made in the form of
+     _rent-purchase_ (_Law_, Trade and Money, 127), and the
+     creditor could declare the contract void only in case the
+     debtor did not pay him the rent. (_Warnkönig_, Franz. R. G.,
+     II, 585 ff.) For strictly Catholic countries, the prohibition
+     relating to the taking of interest still really remains.
+     However, _Leo X.'s_ bull, Inter multiplices, exempts the
+     so-called _monti di pietà_, and by this means put obstacles
+     in the way of saving, and promoted real usury. Of this last,
+     _Niebuhr_, Briefe, II, 399, adduces very striking instances
+     from the Pope's own temporal dominion. In the case of
+     pledge, even 12 per cent. per annum is required. (Rom im
+     Jahr, 1833, 163.) Yet, in 1830, the Poenitentiaria Romana
+     instructed the clergy, without, however, deciding the chief
+     question, not to disquiet people any longer in the
+     confessional who had taken interest. (_Guillaumin_,
+     Dictionnaire de l'Economie politique, art. usure.) On the
+     Russian Sect, _Staroverzen_, which still condemns the taking
+     of interest, see _Storch_, Handbuch, II, 19. By the Russian
+     government it was permitted very early. _Ewers_, Ältestes
+     Recht der R., 323 seq.]
+
+     [Footnote 191-10: The first scientific defense of interest
+     is generally considered to be that of _Salmasius_, loc. cit.
+     Yet _Bacon_, Sermones fideles, C. 39 (after 1539), and at
+     bottom also _H. Grotius_, De Jure Belli et Pacis, 1626,
+     taught that it was lawful to take interest in so far as it
+     was not against the love due to one's neighbor (_Endemann_,
+     loc. cit., I, 62 ff.), and _Besold_, Quaestiones aliquot de
+     Usuris, 1598, was as near the truth as _Salmasius_. Compare
+     _supra_, note 4. How earnestly _North_ and _Locke_ labored
+     against the lowering of interest by governmental
+     interference, see _Roscher_, Z. Gesch. der engl.
+     Volkswirths., 90, 102 ff. The best writers, in strictly
+     Catholic countries, did violence to themselves in this
+     matter for a long time after. Thus _Galiani_, Della Moneta,
+     II, I seq.; and one cannot help being greatly surprised at
+     witnessing the subtleties which _Turgot_, Mémoire sur le
+     Prêt d'Argent, 1769, had to have recourse to, to prove the
+     clearest matters. Thus: at the moment of the loan, a sum of
+     money is exchanged against the mere promise of the other
+     party, which is certainly less valuable. [If it were not,
+     why should he borrow?] This difference must, therefore, be
+     made up in interest, etc. _Mirabeau_ even was a decided
+     opponent of interest. (Philos. rurale, ch. 6.) Compare,
+     however, the theological defense by _Viaixnes_, 1728, in the
+     Traité des Prêts de Commerce, Amsterdam, 1759, IV, 19 ff.]
+
+     [Footnote 191-11: Of course, evaded in a thousand ways in
+     practical life. Thus, for instance, people gave wheat, other
+     commodities, and even uncoined gold and silver as loans, and
+     had what interest they pleased promised them. In alienating
+     the capital, they might stipulate _à fonds perdu_, as they
+     thought best. (Turgot, I, c. § 29.) When debtors had
+     promised under oath to make no complaint, the church ordered
+     that they should be helped officially. When the temporal
+     power showed itself lax, Alexander III. decreed that such
+     questions should be brought before the spiritual courts.
+     (Decret. Greg. V., tit. 19; 13 _Innocent_, Epist., VIII, 16;
+     X, 61.) In England, _Richard of Cornwall_ obtained a
+     monopoly of the whole loaning business. (_Matth. Paris_, ed.
+     1694, 639: compare, also, 20 Henry III., 5.), from which
+     fact the existence of the custom of taking interest about
+     1235, is apparent. Cases in which English kings borrowed and
+     promised payment back _cum damnis, expensis et interesse:_
+     Anderson, Origin of Commerce, a. 1274, 1339.]
+
+     [Footnote 191-12: Compare _Gioja_, Nuovo Prospetto, III,
+     190. The canon law desired to put an interdict on their
+     taking interest also: Decret. Greg., V, tit. 19, 12, 18.
+     Frequently, also, a minimum of interest was provided for
+     them: Ordonnances de la Fr., L. 53 seq. II, 575. Receuil des
+     anciennes, Lois, I, 149, 152. John of France extended this
+     to four _deniers_ per _livre_ per week, that is, annually
+     86-2/3 per cent.! (_J. B. Say_, Traité II, ch. 8.) In
+     Austria, in 1244, 174 per cent. allowed! (_Rizy_, Ueber
+     Zinstaxen und Wuchergesetze, 1859, 72 ff.)]
+
+
+SECTION CXCII.
+
+INTEREST-POLICY.--GOVERNMENT INTERFERENCE.--FIXED RATES.
+
+Instead of the medieval prohibition of interest, most modern states have
+established fixed rates of interest, the exceeding or evasion of which,
+by contract or otherwise, is declared null and void, and is usually
+punishable as usury.[192-1] If the fixing of the rate is intended to
+depress the rate of interest customary in the country,[192-2] [192-3] it
+uniformly fails of its object. If control were great enough, vigilant
+and rigid enough, which is scarcely imaginable, to prevent all
+violations of the law, it is certain that less capital would be loaned
+than had been, for the reason that every owner of capital would be
+largely interested in employing his capital in production of his own.
+More capital, too, would go into foreign parts, and there would be less
+saved by those not engaged in any enterprise of their own. All of this
+would happen to the undoubted prejudice of the nation's entire
+economy.[192-4] [192-5]
+
+If, on the other hand, the control by the government be not great
+enough, the law would, in most cases, be evaded; especially as each
+party, creditor as well as debtor, would find it to his advantage to
+evade it. The latter, who otherwise would not be able to borrow at all,
+is, as a rule, more in need of obtaining the loan, than the creditor is
+to invest his capital. How easily, therefore, might he be induced to
+bind himself by oath or by word of honor![192-6] He would, moreover, be
+compelled to pay the creditor not only the natural interest and the
+ordinary insurance premium, but also for the special risk he runs when
+he violates the law threatening him with a severe penalty.[192-7] Hence
+the last result is either a material enhancement of the difficulty of
+obtaining loans or an enhancement of the rate of interest.[192-8]
+
+     [Footnote 192-1: This is, historically, the second meaning
+     of the word usury, while in the middle ages, for instance in
+     England, under Elizabeth (_D. Hume_), the taking of any
+     interest whatever was called usury. Science should employ
+     this word only in the sense used in § 113.]
+
+     [Footnote 192-2: In Switzerland, at the end of the 17th
+     century, not only were those punished who took more interest
+     than the law prescribed, but those who took less. (Compare
+     Rechtsquellen von Basel, Stadt und Land, 1865, Bd. II.)]
+
+     [Footnote 192-3: Fixed rates of interest of this kind are to
+     be accounted for in part by a still continuing aversion of
+     the legislator for interest in general; in part, by the
+     opinion which prevails that precisely the most useful and
+     most productive classes might be elevated by an artificial
+     lowness of the rate of interest. (But most especially the
+     government itself, which borrows more than it lends.) When
+     Louis XIV. about 1665, lowered the rate of interest to 5 per
+     cent., he claimed in the preamble to his decree that it
+     would have the effect of promoting the welfare of landowners
+     and business men, and of preventing idleness. Similarly
+     _Sully_, Economies royales, L, XII. And so _J. Child_,
+     Discourse of Trade, 69 ff., says that every lowering of the
+     rate of interest, by law, produced a completely
+     corresponding increase of the national wealth. He says,
+     since the first reduction (?) of interest in 1545, the
+     national wealth increased six fold; since the last, in 1651,
+     the number of coaches increased a hundred fold;
+     chamber-maids wore now better clothes than ladies formerly;
+     on 'Change there were more persons with a fortune of £10,000
+     than before with £1,000. Similarly _Culpeper_: compare
+     _Roscher_, Z. Geschichte der eng. Volkswirthsch., 57 ff.
+     Later, the French generally thought that a lowering of the
+     rate of interest would prove injurious to the _noblesse de
+     la robe_; hence even in 1634, parliament was opposed to it.
+     (_Forbonnais_, Recherches et Considérations, I, 48, 226.)
+     _Darjes_ says that information of all loans of capital
+     should be made to the police authorities, and that the
+     authorities might compel payment and the loaning of the
+     principal over again to parties in need of capital. (Erste
+     Gründe, 426 seq.) Something analogous practically provided
+     for by the Würtemberg _Landesordnungen_ of the 16th century.
+     (Compare also _von Schröder_, F. Schatz- und Rentkammer,
+     XXV, 3.)]
+
+     [Footnote 192-4: Precisely a high rate of interest is a
+     powerful incentive to saving, and to the importation of
+     capital.]
+
+     [Footnote 192-5: _Usurae palliatae_, interest taken out of
+     the capital, or stem-interest, called also money-usury in
+     contradistinction to patent interest-usury. To this category
+     belong the written acknowledgments of indebtedness to a
+     larger amount than that actually received; acknowledging it
+     in a higher kind of money than that in which the loan was
+     made; the compulsory taking by the debtor of commodities at
+     a disproportionately high price, in the place of money, or
+     at a disproportionately low one, by the creditor. See the
+     enumeration of such things in the police regulations of the
+     empire, 1530, art. 26, and 1548, art. 17. Thus, in Paris,
+     jewels are "sold" to students hard-pressed for money, which
+     immediately find their way to the _monts de piété_, and have
+     to be paid for some time after to the usurious "seller," at
+     a most exorbitant price. The person who loans $100 at 6 per
+     cent., and retains the interest for the next following year
+     from the date of the loan, takes in reality nearly 6.4 per
+     cent. Fraudulent accessory expenses of all kinds, _faux
+     frais_, expenses of registration, for prolongation, and
+     extinguishment, etc. Here belong, also, the provisions
+     introduced into contracts to make redemption more difficult,
+     the fixing of terms of payment in such a manner that the
+     debtor is almost forced to let them slip by--called "usury
+     in the conditions" in Austria. Remarkable instances from the
+     16th century in _Vasco_, Usura libera, § 57 ff. Recently,
+     _Braun_ und _Wirth_, Die Zinswuchergesetze, 1856, 190 ff. In
+     view of the manifold business transactions behind which the
+     interest-usurer may take refuge, the complete prevention of
+     the latter would break the legs of commerce (loc. cit., 145
+     ff.).]
+
+     [Footnote 192-6: If the state, by annulling such promises,
+     should incite the people to violate them, it would be a
+     frightful step towards the demoralization of the nation:
+     "thus rewarding men for obtaining the property of others by
+     false promises, and then, not only refusing payment, but
+     invoking legal penalties on those who have helped them in
+     their need." (_J. S. Mill_, Principles, V, ch. 10, 2.)
+     Besides, the Austrian usury law of 1803 punishes the
+     borrower also as a spendthrift, and imprisons him for six
+     months (§ 18), or else it designates where he shall make his
+     domicile (_Ortsverweisung_). Modern loaning on drafts and
+     bills of exchange, the acceptance of which is forged with
+     the knowledge of the creditor, corresponds to what
+     _Plutarch_, Quaest., Gr., 53, relates of the Cretans, who
+     had, especially in later times, the worst possible
+     reputation for avarice and dishonesty. (_Polyb._, VI, 46.
+     _Paul_ to Titus, I, 12.)]
+
+     [Footnote 192-7: He must insure him against the usury laws.
+     (_Adam Smith._) According to _Krug_, Staatsökonomie, the
+     usury laws should be called so because they promote usury,
+     not because they prevent it. Compare to some extent,
+     _Montesquieu_, Esprit des Lois, XXII, 18 ff.]
+
+     [Footnote 192-8: When Catherine II. reduced the rate of
+     interest in Livonia, in 1785, from 6 to 5 per cent., it soon
+     became impossible, even on the best security, to borrow at
+     less than 7 per cent. (_Storch_, Handbuch, II, 26.) And so,
+     when in New York, in 1717, the rate of interest was reduced
+     to 6 per cent., it became necessary, the following year, to
+     raise it again to 8 per cent. The merchants, themselves,
+     petitioned that it might be so raised, because they found it
+     impossible to get any loans whatever. (_Ebeling_, Geschichte
+     und Erdbeschreib. von Nord Amerika, III, 152.) In Chili, the
+     legal rate of interest is 6 per cent., the actual rate,
+     however, never under 12 per cent., and frequently 18 to 24
+     per cent. In Peru, on the other hand, the repeal of the
+     usury laws rapidly reduced the rate of interest from 50 to
+     24 per cent., and finally to 12. (_Pöppig_, I, 118.)]
+
+
+SECTION CXCIII.
+
+INTEREST-POLICY.--EFFORTS TO AVOID THE EVIL EFFECTS OF A FIXED RATE.
+
+It has been thought possible to avoid the evil effects of a fixed legal
+rate of interest, by regulating it in such a way as to make it
+coincident with the rate customary in the country.[193-1] But there are
+numberless transactions in which an insurance premium, or premium for
+risk or certain expenses of administration[193-2] on the part of the
+loaner is inseparable from the true interest. Here, even the law which
+entered most into detail could never properly provide for the infinite
+gradations or shades of risk and trouble; and the rate in a great many
+transactions would, therefore, be placed below the natural height.
+Turgot long since observed that the value of a promise of future payment
+is different not only for different persons, but at different times.
+Thus, for instance, it is really less after there have been numerous
+cases of bankruptcy than at other times.[193-3] If, now, it was desired
+to fix the maximum rate of interest in such a way that it should equal
+the rate customary in the country, where the security is good, the best
+real property security for instance, the consequence would be, that
+those persons who had no such guaranty to offer (leaving the loaning
+"among brothers" out of the question) would either be unable to borrow
+money at all, or, by evading the law, only at an artificially higher
+rate. Hence the legislator causes injury where he wished to favor. This
+has been observed in England in almost all past commercial
+crises.[193-4] The man who makes it his business to loan his capital, on
+short time and in small sums, undertakes a trade which the examination,
+and the surveillance of a large number of small debtors, and the
+necessity of reinvesting the many small sums paid him, render
+exceedingly troublesome and disagreeable. Moreover, in loaning on short
+terms of payment, there is always danger that his money may lie idle for
+some length of time. These are reasons sufficient, why, in such cases,
+when the whole compensation is denominated interest, a rate of interest
+greater than usual in the country is equitable and even necessary. (§
+179.)[193-5]
+
+It has been frequently suggested that spendthrifts and adventurers
+should be hindered using, or to speak more correctly, abusing the
+nation's wealth by laws prohibiting the rate of interest at which they
+might be expected to obtain credit; and this in the interest alike of
+the creditors they might possibly find and in their own.[193-6] But
+almost every inventor of genius, from Columbus to Stephenson, has been
+obliged to be considered "an adventurer" for a time by "solid men." The
+law limits him thus, and more especially during the critical period of
+outlay which precedes the undoubted triumph of his idea, to his own
+means or the gifts of others.[193-7] And how inadequate, as rule, are
+both. The rich are as seldom discoverers, as discoverers are skillful
+supplicants. And, as regards spendthrifts, they may ruin themselves in
+so many thousands of ways, especially by buying or selling, and
+unhindered by the state, that it is scarcely apparent why the one way of
+borrowing should be legally closed to them.[193-8] How is it, if the law
+itself drives them into the hands of a worse class of creditors, and
+compels them to pay yet a higher rate of interest? Are they not simply
+more rapidly ruined? States, themselves, have scarcely ever given any
+heed to their own usury laws in borrowing or loaning.[193-9]
+
+     [Footnote 193-1: In Austria, in 1803, in loaning on pledge,
+     4 per cent.; in other loans and in the trade of merchants
+     with one another, 6 per cent. In France, since 1807, with
+     merchants, 6 per cent.; with others, 5. _Salmasins_, De Mono
+     Usur., c. 1, advises that the maximum should be fixed as
+     high as that usual in the most unfavorable cases. The
+     reduction from such rate, where possible, would regulate
+     itself.]
+
+     [Footnote 193-2: _Petty_, Quantulumcunque concerning money,
+     1682.]
+
+     [Footnote 193-3: Sur le Prêt d'Argent, § 36.]
+
+     [Footnote 193-4: How many merchants would have avoided
+     bankruptcy here if they had been allowed to borrow at 8 per
+     cent.! The established rate of 5 per cent. was certainly too
+     low, considering the great demand for capital and the want
+     of confidence at the moment, to permit capital to be loaned
+     at that rate. Many saw themselves compelled to sell their
+     merchandise or evidences of state indebtedness at a loss of
+     30 per cent., in order to meet their obligations. But the
+     person who, to anticipate the receipts due in 6 months, for
+     instance, consents to suffer a loss of 30 per cent., pays,
+     in a certain sense, interest at the rate of 60 per cent. a
+     year. Compare _Tooke_, Considerations on the State of the
+     Currency, 60, and History of Prices, II, 163, on the Crisis
+     of 1825-26. Since the Bank, least of all, could exceed the
+     legal rate of interest, numberless applications were made to
+     it in times of war in order to obtain the difference between
+     the legal rate and the rate usual in the country.
+     (_Thornton_, Paper Credit of Great Britain, ch. 10.)
+     Prussia, November 27, 1857, suspended the usury laws for 3
+     months, on account of the commercial crisis, except the
+     provisions relating to pawn-broker and minors.]
+
+     [Footnote 193-5: _Turgot_ tells of Parisian "usurers" who
+     made weekly advances to the market women of la Halle, and
+     received for 3 livres, 2 sous interest; that is 173 per
+     cent. a year. The premium for insurance may have been very
+     high here. When such loaners were brought before the courts,
+     and they were sentenced to the galleys, the usual punishment
+     for usury, their debtors came and testified their gratitude
+     by begging for mercy to them! (Mémoire sur le Prêt d'Argent,
+     § 14, 31.) Compare _Cantillon_, Nature du Commerce, 276.]
+
+     [Footnote 193-6: Thus, _Adam Smith_, Wealth of Nations, II,
+     ch. 4. Similarly, _Roesler_ Grundsätze, 495 ff. Compare,
+     _per contra_, _Jer. Bentham_, Defense of Usury: showing the
+     Impolicy of the present legal Restraints on the Terms of
+     pecuniary Bargains in Letters to a Friend. To which is added
+     a Letter to Adam Smith on the Discouragement imposed by the
+     above Restraints to the Progress of inventive Industry,
+     1787; 3 ed., 1816.]
+
+     [Footnote 193-7: The first steamboat in the United States
+     was, for a long time, called the "Fulton-folly!"]
+
+     [Footnote 193-8: It is just as hard to see why only
+     money-capital should have a fixed rate of interest, and not
+     buildings, etc. likewise.]
+
+     [Footnote 193-9: In Holland, the legal rate of interest was
+     lowered, in 1640, to 5 per cent., and in 1655 to 4; but not
+     since. (_Sir J. Child_, Discourse of Trade, 151.) Besides,
+     _Locke_, Considerations on the Lowering of Interest, Works,
+     III, 34, assures us that, in his time, a man in England
+     could make contracts for unlimited interest.]
+
+
+SECTION CXCIV.
+
+INTEREST-POLICY.--REPEAL OF THE USURY LAWS.
+
+However, the complete repeal of the usury laws[194-1] has not under all
+circumstances accomplished what it was supposed it would; and the state
+should take great care, lest by an incautious framing of its laws, it
+should put judges in such a position that they may be compelled to
+coöperate in the execution of immoral contracts.[194-2] In the lowest
+strata, so to speak, of the loaning business, the medieval condition
+continues to exist (§ 190) after it has disappeared in the upper. Here,
+the loan is effected scarcely ever for the purposes of production, but
+most generally because of the most urgent necessity; and the debtor is
+not in a condition, from want of education, and especially from his
+ignorance of arithmetic, to estimate the magnitude of the burthen he has
+undertaken. The business of loaning is, under such circumstances,
+considered dishonorable, to some extent, by the public. And when a
+business necessary in itself is held disreputable by public opinion, the
+usual result is that bad men alone engage in it.[194-3] Real competition
+which would but fix the natural price is wanting here in proportion as
+the debtor is anxious for secrecy.[194-4]
+
+Abuses in this respect are best guarded against by the establishment of
+government loan-institutions, and by the publicity of the administration
+of justice to debtors.[194-5] Besides, every contract might be
+prohibited the terms of which were such that an inexperienced borrower
+could not from them obtain a clear conception of the burthen he accepts,
+or which hindered him from paying the debt at a proper time.[194-6]
+
+Lastly, there should be a rate of legal interest fixed by the state to
+be charged in such cases as interest is found to be in justice due, but
+in which none is provided for by contract; and this rate should
+approximate as nearly as possible to the rate usual in the
+country.[194-7] [194-8]
+
+     [Footnote 194-1: In 1787, Joseph II. abolished the penalties
+     for usury, but allowed the provisions denying a legal
+     remedy, in cases of usurious demand of over 4 per cent. for
+     hypothecations, 6 per cent. for bills and 5 per cent. for
+     other loans, to remain. Compare the prize essay by
+     _Günther_, Versuch einer vollständigen Untersuchung über
+     Wucher und Wuchergesetze, 1790; _v. Kees_, über die
+     Aufhebung der Wuchergesetze, 1791; _Vasco_, Usura libera,
+     1792. The opposite view represented by _Ortes_, E. N., II,
+     24, and _v. Sonnenfels_, Ueber Wucher und Wuchergesetze,
+     1789, and zu Herrn _von Kees_, Abhandlung, etc., 1791. The
+     debates on the repeal of the usury laws in the French
+     Chamber of Deputies, after which _Lherbette's_ motion in
+     favor of their repeal was rejected. In France they were,
+     during the assignat-period of bewilderment virtually, and in
+     1804-1807 expressly (C. C., Art. 1907), but only
+     provisionally repealed. In Würtemberg, all those having the
+     right to draw bills of exchange were exempted from them in
+     1839. Since the law of 1848, governing bills of exchange,
+     gave all persons capable of contracting, the right to draw
+     bills of exchange, the usury laws have ceased to have any
+     existence; without much noise before and without much
+     complaint after. (A. Allgem. Ztg., 24 März, 1857.) Recent
+     complete or partial repeal of the usury laws: in England, in
+     1854; in Denmark, in 1855; in Spain, in 1856; Sardinia,
+     Holland, Norway and Geneva, 1857; Oldenburg, 1858; Bremen,
+     1859; in the kingdoms of Saxony and Sweden, in 1864;
+     Belgium, 1865; Prussia, the North German Confederation, and
+     to some extent Austria, in 1867.]
+
+     [Footnote 194-2: Compare _F. X. Funck_, Zins und Wucher,
+     1868, a moral theological treatise which rightly demands a
+     more rigid popular morality in relation to real usury, after
+     the repeal of the usury laws. The recent cases in which
+     courts have juridically acquitted usurers because they could
+     not do otherwise, but have branded them morally, are of very
+     questionable propriety, in view of the facility with which
+     high and usurious rates of interest may be confounded. _R.
+     Meyer_, Emancipationskampf, I, 78, advises that the
+     capitalist be allowed to ask whatever interest he wishes,
+     but that the state, as judge and executor of the laws,
+     should enforce payment only at a certain rate determined by
+     law.]
+
+     [Footnote 194-3: Many laws seem to purposely permit this,
+     inasmuch as they allow a rate of interest, higher in
+     proportion as the position of the creditor is less
+     respectable. Thus, formerly, in some places, the Jews might
+     require higher interest than the Christians. Justinian
+     allows _personis illustribus_ only 4 per cent.; ordinary
+     private persons, 6 per cent.; money-changers, etc., 8 per
+     cent. (L. 26, Cod. IV, 32.) On the other hand, according to
+     the Indian legislation of Menu, the Brahman is obliged to
+     confine himself to 2, the warrior to 3, the _vaysya_ to 4,
+     the _sudra_ to 5 per cent. per month at most. (Cap. 8.)]
+
+     [Footnote 194-4: _Turgot_ considered that only the _prêteurs
+     à la petite semaine_, pawnbrokers who loaned to hard-pressed
+     people on the confines of the middle class and artisans, and
+     the infamous characters who advanced money to the sons of
+     rich men to spend in dissipation, still passed for usurers.
+     Only the latter are injurious; not, however, because of the
+     high rate of interest they charge, but because they help in
+     a bad cause. (Sur le Prêt d'Argent, § 32.) According to
+     _Colquhoun_, Police of the Metropolis, 167, there are women
+     in London from whom the hucksteresses borrow 5 shillings
+     every day and return them every evening with ½ shilling
+     interest. Something analogous happens much more frequently
+     in the country, especially in the loaning in kind of
+     productive capital to poor persons. Thus, in Tessin, there
+     are many "iron cattle" which the borrower is obliged to
+     return at their original value, plus an interest of about 36
+     per cent. (_Franscini_, C. Tessin, 152.) On the Rhine,
+     frequently as much as 200 per cent. a year, is stipulated
+     for in such contracts. _Morstadt_, der N. Oekonom. Heft., IX,
+     727.]
+
+     [Footnote 194-5: Compare _J. J. Becher_, Polit. Discurs,
+     1668, 219; _v. Schröder_, F. Schatz- und Rentkammer, Bd. §§
+     123, 133 ff. The first _montes pictatis_ were expressly
+     intended to check the usury of the Jews. Thus, in Florence,
+     in 1495, after the expulsion of the Jews, voluntary
+     contributions were made to found a municipal loaning
+     establishment. Similarly, _Tiberius_, Tacit. Ann., VI, 16
+     seq. _Count Soden_, Nat-Oek., IV, 57; V, 319, advises that
+     all contracts for interest should be recorded in a public
+     registry, under pain of their being held not actionable.]
+
+     [Footnote 194-6: _Günther_, loc. cit., thinks that, in every
+     contract in which the rate of interest is masked, its real
+     rate should be expressed under penalty of invalidity. In
+     addition to this, he would have those who have attained
+     their majority put in full control of their fortune only
+     after they had undergone an examination.
+
+     It seems opportune that the old prohibition against interest
+     on interest (_Cicero_, ad. Att., V, 21, and L, 26, Digest,
+     XIV, 6) and the provision that the interest should not be
+     permitted to be greater than the _alterum tantum_ (Digest,
+     l. c.) should be permitted to continue. (Digest, l. c.) Both
+     of these measures were first decreed by Lucullus, for the
+     protection of Asia Minor. Compare § 115. Florentine law, of
+     1693, that interest in arrears, or that interest on interest
+     beyond 7 years, should not be added to the principal without
+     an express contract to that effect. (_Vasco_, Usura libera,
+     § 155.) In England, the usury laws were by 2 and 3 Victor.,
+     c. 37, repealed, but only to the extent of excepting from
+     their provisions bills of not over 12 months, and money
+     loans not over £10. Compare _Rau_, Lehrbuch II, § 323.]
+
+     [Footnote 194-7: Compare _Locke_, Considerations: Works, 10,
+     32 ff. In Spain, the Council of State is required to
+     regulate the rate of legal interest yearly (law of 1856,
+     art. 8); a thing which, according to _Braun_, would be
+     better done in each individual case by the judges
+     themselves. (_Faucher's_ Vierteljahrsschrift, 1868, II,
+     13.)]
+
+     [Footnote 194-8: In Athens, the rate of interest in general
+     was voluntary from the time of Solon, who, however, did away
+     with slavery for debt. (Lysias adv. Theomn., 360.) Yet there
+     was a legal rate of interest of 18 per cent. for the case in
+     which a divorced husband delayed the return of his wife's
+     dowry. Compare _Böckh_, Staatshaushalt der Athener, I, 148.]
+
+
+
+
+CHAPTER V.
+
+THE UNDERTAKER'S PROFIT. (_UNTERNEHMERLOHN._)
+
+
+SECTION CXCV.
+
+THE REWARD OF ENTERPRISE.
+
+The essence of an enterprise or undertaking, in the politico-economical
+sense of the word, consists in this, that the undertaking party engages
+in production for the purpose of commerce, at his own risk. In the
+earlier stages of a nation's economy, the production of consumers is,
+naturally enough, limited chiefly by their own personal wants. Somewhat
+later, when the division of labor has been further developed, the
+workman produces at first, enough to meet occasional determinate
+"orders;" and still later to meet them regularly and as a business.
+Later yet, and in stages of civilization yet higher, especially when the
+freedom of labor constantly grows, as it is wont to, here, and the
+freedom of capital and trade becomes more extensive, enterprise plays a
+part which grows more important as time rolls on, and is usually carried
+on more at one's own risk.[195-1] This transition is a great advance,
+inasmuch as the advantages of the coöperation of labor and of _use_ may
+be utilized in a much higher degree by undertakers (_Unternehmer_) than
+by producers who labor only to satisfy their own household wants, or to
+meet "orders" already made. The awakening of latent wants, a matter of
+the utmost importance to a people who would advance in civilization, is
+something which can enter into the mind only of a man endowed with the
+spirit of enterprise (an undertaker).[195-2]
+
+While most English political economists have confounded the personal
+gain of the undertaker with the interest on the capital used by
+him,[195-3] many German writers have called the "undertaker's earnings"
+or profit a special, and fourth, branch of the national income,
+coördinate with rent, wages, and the interest on capital.[195-4] Yet,
+the net income of every undertaker is either the fruit of his own land
+used for purposes of production and of his capital, in which case it is
+subject to the usual laws of development of rent and interest; or, it
+must be considered as wages paid for his labor.[195-5] These wages he
+earns, as a rule, by organizing and inspecting the work, calculating the
+chances of the whole enterprise; frequently by, at the same time,
+keeping the books and acting as cashier; and, in the case of small
+undertakings, as a common fellow-workman. (Tradesman, peasant). In every
+case, however, even when he puts an agent paid by himself in his place,
+he earns these wages from the fact that his name keeps the whole
+enterprise together; and for the reason that, in the last
+instance,[195-6] he has to bear the care and responsibility attending
+it.[195-7] When a business goes wrong, the salaried director or foreman
+may permit himself to be called on to engage in another; but the weary,
+watchful nights belong to the undertaker or man of enterprise, alone;
+and "how productive such nights frequently are!"[195-8]
+
+This profit of the undertaker is subject essentially to the same natural
+law as wages in general are; only it differs in this from all other
+branches of income, that it can never be stipulated for in advance.
+Rather does it consist of the surplus which the product of the
+undertaking affords over and above all the rent stipulated for in
+advance or estimated at the rate usual in the country, the interest on
+capital, and wages of common labor.[195-9]
+
+     [Footnote 195-1: At first, usually imperfect enterprises in
+     which the shop-instruments, etc., are kept ready for present
+     orders; and then complete or perfect enterprises. (_v.
+     Mangoldt_, Volkswirthschaftslehre, 255.)]
+
+     [Footnote 195-2: _v. Mangoldt_, Lehre vom Unternehmergewinn,
+     1855, 49 ff. The same author shows, in his
+     Volkswirthschaftslehre, that it is better for the general
+     good that the risk should be borne by the producer than by
+     the consumer. In the case of the taking of orders, there is
+     danger only of a technic failure, but in enterprise proper,
+     there is possible also an economic miscarriage of the work,
+     even when successful from a technic point of view. But in
+     the case of the undertaker (man of enterprise),
+     responsibility is much more of an incentive, production much
+     more steady, and therefore much better able to exhaust all
+     means of help. Consumers are much more certain in their
+     steps, as regards price, etc., since they find what they
+     want ready made.]
+
+     [Footnote 195-3: Thus _John Stuart Mill_, Principles, II,
+     ch. 15, 4, teaches with a certain amount of emphasis that
+     the "gross profits of stock" are different not so much in
+     the different branches in which capital is employed, as
+     according to the personal capacity of the capitalist himself
+     or of his agents. There are scarcely two producers who
+     produce at precisely the same cost, even when their products
+     are equal in quality, and equally cheap. Nor are there two
+     who turn over their capital in precisely the same time.
+     These "gross profits" uniformly fall into three classes:
+     reward for abstinence, indemnity for risk, remuneration for
+     the labor and skill required for superintendence. _Mill_
+     complains that there is in English no expression
+     corresponding to the French _profit de l'entrepreneur_. [The
+     translator has taken the liberty to use the expression
+     "undertaker's profit," for what the French call the _profit
+     de l'entrepreneur_, and the Germans _Unternehmerlohn_, spite
+     of its funereal associations, and because Mill himself
+     employed it, although he recognized that it was not in good
+     usage.--TR.] (II, ch. 15, 1) _Adam Smith_ had the true
+     doctrine in germ (Wealth of Nat., I, ch. 6), but those who
+     came after him did little to develop it. Compare _Ricardo_,
+     Principles, ch. 6. 21. _Read_, Political Economy, 1829, 262
+     ff., and _Senior_, Outlines, 130 seq., were the first to
+     divide profit into two parts: interest-rent (_Zinsrente_)
+     and industrial gain. Similarly, _Sismondi_, N. P., IV, ch.
+     6. According to _A. Walker_, Science of Wealth, 1867, 253,
+     285, "profits are wages received by the employer."]
+
+     [Footnote 195-4: _Hufeland_, Grundlegung, I, 290 ff.;
+     _Schön_, Nat-Oek., 87, 112 ff.; _Riedel_, Nat-Oek., II, 7 ff.;
+     _von Thünen_, Der isolirte Staat, II, 1 80 ff.; _v.
+     Mangoldt_, Unternehmergewinn, 34 ff. The latter divides the
+     undertaker's profit (_profit de l'entrepreneur_) into the
+     following parts:
+
+     A. Indemnity for risk. If this be only an indemnity exactly
+     corresponding to the risk, it cannot be looked upon at all
+     as net income, but only as an indemnification for capital.
+     If individual undertakers, favored by fortune, receive a
+     much larger indemnification than is necessary to cover their
+     losses, such indemnification is not income either, but an
+     extraordinary profit not unlike a lottery-gain, unless it be
+     called, perhaps, the reward of extraordinary courage
+     (_Eiselen_), i. e., wages. If, lastly, the indemnity is
+     uniformly somewhat larger than the risk, in order to
+     compensate for the continual feeling that one is running a
+     risk, it must be remembered that all remuneration for
+     present sacrifice, made directly for the sake of production,
+     is wont to be embraced under the name of wages.
+
+     B. Wages and interest for the labor and capital utilized
+     only in one's own production, and which cannot be let. _v.
+     Mangoldt_ himself admits, that, in the long run, only
+     certain qualified labor belongs to this category.
+
+     C. Undertaker's rent (_Unternekmerrente_) depending on the
+     rarity of undertakers (men of enterprise) compared with the
+     demand. This, therefore, is not a third component part, but
+     only one which adds to the other two, _Storch_, Handbuch, I,
+     180, and _Rau_, Lehrbuch, I, § 237 ff., consider the profit
+     of the undertaker as an admixture of wages and interest.
+     Professor _J. Miscszewicz_ has given expression to an
+     interesting thought in opposition to myself: that credit is
+     a fourth factor of production (natural forces, labor and
+     capital being the other three) produced by the three older
+     factors, as capital by the two oldest. The undertaker's
+     profit he then considers the product of this fourth factor,
+     corresponding to rent, interest and wages.]
+
+     [Footnote 195-5: Compare _Canard_, Principes, ch. 3; _J. B.
+     Say_, Traité, II, ch. 7, Cours pratique, V, 1-2, 7-9,
+     distinguishes three branches of income: rent, interest and
+     the profits of industry; and he divides the latter again
+     into the profits of the _savant_, the undertaker and
+     workmen, (_v. Jacob_, Grundsätze der Nat.-Oek., § 292;
+     _Lotz_, Handbuch, I, 471; _Schmalz_,
+     Staatswirthschaftslehre, I, 116; _Nebenius_, Œff. Credit,
+     I, Aufl., 466.)]
+
+     [Footnote 195-6: I need only call attention to the influence
+     that the mere name of a general sometimes exerts over the
+     achievements and sometimes even over the composition of his
+     army (Wallenstein!); and how important it sometimes is to
+     keep his death a secret. And so the mere name of a minister
+     of finance may facilitate loans, etc.]
+
+     [Footnote 195-7: It is sufficient to mention the different
+     positions occupied by the shareholders and preferred
+     creditors of a joint-stock company.]
+
+     [Footnote 195-8: Compare _von Thünen's_ Isolirter Statt, II,
+     80 ff., and his Life, 1868, 96. _Meister muss sich immer
+     plagen!_ (_Schiller._) See a long catalogue of books on the
+     position of the undertaker in the principal different
+     branches of industry in _Steinlein_, Handbuch der
+     Volkswirthschaftslehre, I, 445 ff.]
+
+     [Footnote 195-9: _Tantièmes_ occupy a middle place between
+     wages and the undertaker's profit; dividends a middle place
+     between undertaker's profit and the interest of capital. On
+     this is based _Rodbertus's_ view, that an increase of joint
+     stock companies raises _ceteris paribus_ the rate of
+     interest, and an increase of productive associations the
+     rate of wages, for the reason that in each instance, there
+     is some admixture of "undertaker's profit," or reward of
+     enterprise.]
+
+
+SECTION CXCVI.
+
+UNDERTAKER'S PROFIT.--CIRCUMSTANCES ON WHICH IT DEPENDS.
+
+As the wages or reward of labor, in all instances, depends on the
+circumstances mentioned in § 167 ff., so, also does the reward of
+enterprise; in other words, the undertaker's profit or wages. It
+depends, therefore:
+
+A. On the rarity of the personal qualities required in a business, which
+qualities may be divided into technical and ethical qualities. Among the
+latter are, especially, the capacity to inspire capitalists with
+confidence and workmen with love for their task; the administrative
+talent to systematize a great whole made up of men and to order it
+properly, to keep it together by sternness of discipline in which
+pedantry has no part, and by economy with no admixture of avarice; and
+frequently endurance and even presence of mind. These ethical,
+statesmanlike qualities are, take them all in all, a more indispensable
+condition of high undertaker's profit than the technical are.[196-1]
+
+B. On the risk of the undertaking in which not only one's property, but
+one's reputation, may be lost.[196-2]
+
+C. As to the disagreeableness of the undertaking or enterprise, we must
+take into especial consideration the disinclination of capitalists in
+general to assume the care and trouble of concerning themselves directly
+with the employment of their capital. (§ 183.) The undertaker's profit
+is, besides, lower in proportion as he needs to care less for the
+profitable application of the different sources of production, and for
+their preservation. Hence it is, in general, higher for the direction of
+circulating than of fixed capital; in speculative trade and in wholesale
+trade which extends to the whole world, than in retail trade and merely
+local business.[196-3]
+
+It has, indeed, been remarked, that the undertaker's profit is, as a
+rule, proportioned to the capital employed.[196-4] This may be true in
+most cases, but only as the accidental compromise between opposing
+forces. It is evident that the greater the enterprise is, the greater
+may be the surplus over and above the compensation stipulated for in
+advance of all the coöperating productive forces, and not only
+absolutely but also relatively. We need only call to mind the successful
+results attending the greater division of labor (§ 66) and the greater
+division of use (_Gebrauchstheilung_) (§ 207); the greater facility of
+using remains in production on a large scale, and the fact that all
+purchases, and all obtaining of capital are made, when the items are
+large, at cheaper rates, because of the more convenient conducting of
+the business.
+
+This is true up to the point where the magnitude of the whole becomes so
+great as to render the conducting of it difficult. Considered even
+subjectively, the great undertaker, whose name and responsibility keep a
+great many productive forces together, may demand a higher reward,
+because there are so few persons competent to do the same. On the other
+hand, it cannot be denied that a support in keeping with his position
+may be called the amount of the cost of production of the undertaker's
+labor. If this cost is once fixed by custom, it will, of course, be
+relatively high in those branches of business which permit only of the
+employment of a small capital.[196-5]
+
+In the higher stages of civilization, the undertaker's profit has, like
+the rate of interest, a tendency to decline. This decline is, indeed, in
+part, only an apparent one, caused by the decreased risk and the smaller
+indemnity-premium. But it is, in part, a real one, produced by the
+increased competition of undertakers.[196-6] The more intelligent
+landowners and workmen become, the more readily do they acquire the
+capacity and desire to use the productive forces peculiar to them in
+undertakings of their own; and the number of retired persons who live
+from their rents grows smaller with the decline of the rate of interest.
+The strong competition of undertakers now leads to degeneration, and
+undertakings or enterprises become usual in which the gains or losses
+are subjective, and are destitute of all politico-economical
+productiveness; for instance, the purchase of growing fruits, and
+businesses carried on in "margins," or differences. It is self-evident
+that the circumstances which retard the rate of interest, or turn it
+retrograde, would have a similar effect on the undertaker's profit. (§
+186.) On the whole, a rapidly growing people meet with great gains and
+losses, but the preponderance is in favor of the former. A stationary
+people are wont to become more and more careful and cautious. A
+declining people underestimate the chances of loss, although in their
+case they tend more and more to preponderate over the chances of gain.
+(_v. Mangoldt._)
+
+     [Footnote 196-1: Thus _Arkwright_, by his talent for
+     organization principally, attained to royal wealth, while
+     _Hargreaves_, a greater inventive genius, from a technic
+     point of view, had to bear all the hardships of extreme
+     poverty.]
+
+     [Footnote 196-2: An experienced Frenchman, _Godard_,
+     estimates that of 100 industrial enterprises attempted or
+     begun, 20 fail altogether before they have so much as taken
+     root; that from 50 to 60 vegetate for a time in continual
+     danger of failing altogether, and that, at the furthest, 10
+     succeed well, but scarcely with an enduring success.
+     (Enquête commerciale de 1834, II, 233.)]
+
+     [Footnote 196-3: Thus _Ganilh_, Théorie de l'Economie
+     politique I, p. 145, was of the opinion that in France's
+     foreign trade the profit was only 20, and in its internal
+     trade, scarcely 10 per cent. of the value put in
+     circulation.]
+
+     [Footnote 196-4: _Hermann_ loc. cit. 208.]
+
+     [Footnote 196-5: According to _Sinclair_, Grundgesetze des
+     Ackerbaues, 1821, the profit on capital of English farmers
+     was wont to be from 10 to 18 per cent. Only in very
+     remarkable cases, by persons in very favorable
+     circumstances, was from 15 to 20 per cent. earned; that is,
+     on the whole, less than in commerce and industry. In the
+     case of farmers of meadow land, 15 per cent. and even more
+     was not unusual; because there is a need of less outlay
+     here, but more mercantile speculation, especially in the
+     fattening of live stock.
+
+     At the end of the last century English farmers expected 10
+     per cent. profit on their capital. (_A. Young_, View of the
+     Agriculture of Suffolk, 1797, 25.) And so _Senior_ is of
+     opinion that, in the England of to-day, industrial
+     enterprises of £100,000 yield a profit of less than 10 per
+     cent. a year; those of £40,000, at least 12½ per cent.;
+     those of from £10,000 to £20,000, 15 per cent.; smaller ones
+     20 per cent. and even more. He makes mention of fruit
+     hucksters who earned over 20 per cent. a day; that is, over
+     7,000 per cent. a year! (Outlines, 203 seq.) In Manchester,
+     manufacturers, according to the same authority, turned over
+     their capital twice a year at 5 per cent.; retail dealers,
+     three times a year at 3½ per cent. (Ibid, 143.) _Torrens_,
+     The Budget (1844), 108, designates 7 per cent. as the
+     minimum profit which would induce an English capitalist to
+     engage in an enterprise of his own. According to _v.
+     Viebahn_, Statistik des Regierungsbezirks Düsseldorf, 836,
+     I, 180, the undertaker's profit, i. e., the surplus money of
+     the value of the manufactured articles, after deduction made
+     of the raw material and wages, in the Berg country, amounted
+     to, in 81 iron factories, 146,400 thalers; in 6 cotton
+     factories, to 21,200 thalers; in 15 cloth factories, to
+     14,725 thalers; in 4 worsted factories, to 1,700 thalers; in
+     4 brush factories, to 800 thalers; in 2 tobacco factories to
+     10,220 thalers; in 2 paper factories, to 7,400 thalers; on
+     an average, 1,924 thalers; although many undertakers earned
+     only from 200 to 400 thalers, and some few from 5,000 to
+     10,000 thalers.]
+
+     [Footnote 196-6: This is, of course somewhat oppressive to
+     many individuals, and hence we find that in those countries
+     which are unquestionably making great advances in
+     civilization, there are so many complaints of alleged
+     growing impoverishment. Compare _Sam. Fortrey_, England's
+     Interest and Improvement, 1663; _R. Coke_, A Treatise
+     wherein is demonstrated that the Church and State of England
+     are in equal danger with the Trade of it, 1671. Britania
+     languens, showing the Grounds and Reasons of the Increase
+     and Decay of Land, etc., 1680. And per contra, England's
+     great Happiness, wherein is demonstrated that a great Part
+     of our Complaints are causeless, 1677. Analogous claims
+     might be shown to exist in Germany by a collection of almost
+     any number of opinions advanced during the last thirty
+     years.]
+
+
+SECTION CXCVI (_a._).
+
+UNDERTAKER'S PROFIT.--HAVING THE "LEAD."
+
+The undertaker's profit is that branch of the national income in which
+the greater number of new fortunes are made. If a landowner has a large
+income, he generally considers himself obliged to make a correspondingly
+large outlay, one in keeping with his position; and workmen who are not
+undertakers themselves seldom have the means to make large savings.
+Besides, undertakers stand between the purchasers of their products and
+the lessors of the productive forces used by them in the peculiarly
+favorable situation which I may describe by the expression: having, as
+they say in card-playing, "the lead."[196a-1] When, in the struggle for
+prices, one party occupies a position which enables him to observe every
+change of circumstance much sooner than his opponent, the latter may
+always suffer from the effects of erroneous prices. If, for instance,
+the productiveness of business increases, even without any personal
+merit of the individual undertakers themselves, it will always be some
+time before the decline in the price of commodities and the rise in the
+rate of interest take place, as a result of the increased competition of
+undertakers, consequent upon the extraordinary rate of the undertaker's
+profit. It is difficult, and even impossible in most instances for the
+proprietors of the productive forces which they have rented out, to
+immediately estimate accurately the profit made by undertakers. On the
+other hand, the least enhancement of the price of the forces of
+production is immediately felt by the undertakers, and causes them to
+raise their prices. They just as quickly observe a decline of the prices
+of the commodities, and know how to make others bear it by lowering
+wages and the rate of interest.[196a-2] It should not be forgotten that
+the persons most expert, far-seeing, active and expeditious in things
+economic, belong to the undertaking class.[196a-3] [196a-4]
+
+     [Footnote 196a-1: The same principle is effective in
+     intermediate commerce, and in the intervention of bankers
+     between government and state creditors.]
+
+     [Footnote 196a-2: This is much less the case in rents, for
+     the reason that contracts here are made for a much longer
+     term. Hence, here the farmer has as much to fear as to hope
+     from a change of circumstances. Hence, too, we meet with a
+     farmer who has grown rich much more seldom than with a
+     manufacturer or a merchant.]
+
+     [Footnote 196a-3: If an undertaker can cede his higher
+     reward to another and guaranty its continuance, the
+     circumstances which enable him to do this assume the nature
+     of fixed capital; for instance, the trade or _clientèle_
+     secured by custom or privilege. If the undertaker has not
+     the power to dispose of it in this way, the increased profit
+     either disappears with his retirement from the business or
+     falls to the owner of the capital employed, and still more
+     to the land owner. Thus, for instance, how frequently it has
+     happened that a store, which has been largely resorted to by
+     the public, drawn thither by the business tact of the
+     lessee, has afterwards been rented by the owner at a higher
+     rent! (_Hermann_, loc. cit. 210.)]
+
+     [Footnote 196a-4: _Lassalle's_ socialistic attacks on
+     Political Economy have been directed mainly against the
+     undertaker's profit or reward. Compare the work
+     "Bastiat-Schulze von Delitzsch, der ökonom. Julian oder
+     Kapital und Arbeit," 1863. By means of state credit, he
+     would have this branch of income turned over to common
+     labor. _Dühring_ also, Kapital und Arbeit 90, declaims not
+     so much against capital as against "the absolutism of
+     undertakers." _Schäffle_ D. Vierteljahrsschrift Nr. 106, II,
+     223, objects to this, that undertakers give value in
+     exchange to unfinished products, a great service rendered
+     even to the laboring class, who otherwise would have to
+     resign the advantages of the division of labor.
+
+     The undertaker's profit is precisely the part of the great
+     politico-economical tree from which further growth chiefly
+     takes place. To artificially arrest it, therefore, would be
+     to hasten the stationary state, and thus make general and
+     greater the pressure on workmen and capitalists, which it is
+     sought to remove locally. Hence _Roesler_, Grundsätze, 507
+     ff., very appropriately calls the undertaker's profit the
+     premium paid by society to those who most effectually combat
+     the "law of rent." The importance of a good undertaker may
+     be clearly seen when a joint stock manufacturing company
+     pays a dividend of from 20 to 30 per cent., while one close
+     by, of the same kind, produces no profit whatever. But, at
+     the same time, the socialistic hatred of this branch of
+     income may be easily accounted for, in a time full of
+     stock-jobbing, which last never produces except a
+     pseudo-undertaker's profit.]
+
+
+
+
+CHAPTER VI.
+
+CONCLUDING REMARKS ON THE THREE BRANCHES OF INCOME.
+
+
+SECTION CXCVII.
+
+INFLUENCE OF THE BRANCHES OF INCOME ON THE PRICE OF COMMODITIES.
+
+We have seen, § 106, that the cost of production of a commodity,
+considered from the point of view of individual economy, may be reduced
+to the payment for the use of the requisite productive forces rented or
+loaned to the producer. Hence every great variation in the relation of
+the three branches of income to one another must produce a corresponding
+variation in the price of commodities.[197-1] When, for instance, the
+rate of wages increases because they absorb a larger part of the
+national income, those commodities in the production of which human
+labor, directly employed, is the chief factor, must become dearer as
+compared with others. Whether this difference shall be felt principally
+by the products of nature or of capital (compare § 46 seq.), depends on
+the causes which brought about the enhancement of the rate of wages.
+Thus, a large decrease of population, or emigration on a large scale,
+will usually lower rent as well as the rate of interest;[197-2] an
+extraordinary improvement made in the art of agriculture, only the
+former; and an extraordinary increase of capital, only the latter. The
+usual course of things, namely that the growth of population
+necessitates a heavier draft on the resources of the soil, and thus
+causes rents to go up, and makes labor dear, must have the effect of
+raising the price of the products of labor and of natural forces, as
+compared with the products of capital; and all the more as it causes the
+rate of interest to suffer a positive decline. The products of
+mechanical labor become relatively cheaper; and cheaper in proportion as
+the producing machinery is more durable; therefore in proportion as, in
+the price of the services it renders, mere interest preponderates over
+compensation for its wear and tear.[197-3]
+
+Let us, for a moment, leave ground-rent out of the question entirely,
+and suppose a nation's economy whose production is conducted by eleven
+undertakers employed on different commodities. Let us suppose that
+undertaker No. 1 uses machinery exclusively and employs only as many
+workmen as are strictly necessary to look after it, that undertaker No.
+2 has a somewhat larger number of workmen and a somewhat smaller amount
+of fixed capital, etc.; and that this increase in the number of workmen
+and decrease in the amount of fixed capital continues until we reach
+undertaker No. 11, who employs all his capital in the payment of wages.
+If now, the rate of wages were to rise, and the interest on capital to
+fall in the same proportion, the commodities produced by undertaker No.
+11 would rise most in price, and those of No. 1 decline most. In the
+case of undertaker No. 6, the opposing influences would probably balance
+each other, and if the producers of money belonged to this sixth class,
+it would be very easy to get a view of the whole change in the
+circumstances of production, in the money-price of the different
+commodities.[197-4]
+
+     [Footnote 197-1: Compare _Adam Smith_, I, ch. 7, fin. This
+     relative increase or decrease of one branch of income at the
+     expense or to the advantage of another, should be
+     distinguished from the absolute change of its amount which
+     does not affect the cost of production. Thus, for instance,
+     when the rent of land indeed increases, but in consequence
+     of a simultaneous improvement in agriculture, a decline in
+     the rate of interest, and an enhancement of the price of
+     wheat is avoided (§ 157). So, too, when individual wages
+     increase on account of the greater skill and energy of
+     labor, but the same quantity and quality of labor do not
+     become dearer (§ 172 seq.); and lastly, when the rate of
+     interest remaining unaltered, the receipts of capitalists
+     are increased by reason of an increase of their capital (§
+     185).]
+
+     [Footnote 197-2: After the great plague in the 14th century
+     in England, when all the products of labor became dearer,
+     skins and wool fell largely in price: _Rogers_, I, § 400.]
+
+     [Footnote 197-3: Anyone who carefully reads all the five
+     divisions of _Ricardo's_ first chapter will soon find that
+     this great thinker rightly understood the foregoing,
+     although the great abstractness and hypothetical nature of
+     his conclusions might easily lead the reader astray. The
+     proposition which closes the second part, and which has been
+     so frequently misunderstood by his disciples, can be
+     maintained only on the supposition that the prices of all
+     commodities hitherto have been made up of equal proportions
+     of rent, capital and wages. But think of Brussels lace and
+     South American skins!]
+
+     [Footnote 197-4: Compare _J. Mill_, Anfangsgründe der polit.
+     Oekonomie, Jacob's translation, § 13 ff.; _McCulloch_,
+     Principles, III, 6. _Adam Smith_ was of opinion, that higher
+     wages enhanced the price of commodities in an arithmetical
+     ratio, a higher rate of interest in a geometrical one (I,
+     ch. 9). Similarly _Child_, Discourse of Trade, 38. This last
+     _Kraus_, Staatswirthschaft, better expresses by saying that
+     an increase in the rate of interest operates in the ratio of
+     the compounded interests.]
+
+
+SECTION CXCVIII.
+
+REMEDY IN CASE ONE FACTOR OF PRODUCTION HAS BECOME DEARER.
+
+When one of the three branches of income has grown as compared with the
+others; in other words, when the factor of production which it
+represents has become relatively dearer, it is to the interest of the
+undertaker and of the public, that it should be replaced where possible
+by another and cheaper productive force. (§ 47.) On this depends the
+advantageousness of _intensive_ agriculture (high farming) in every
+higher stage of civilization. There land is dear and labor cheap. Hence,
+efforts are made to get along with the least amount of land-surface, and
+this minimum of land is made more productive by a number of expedients
+in cultivation, by manuring it, by seed-corn, etc., of course also by
+the employment of journeymen laborers, oxen, etc. And since the price of
+land is intimately connected with the price of most raw material,
+remains are here saved as much as possible, often with a great deal of
+trouble.[198-1] In a lower stage of civilization, such savings would be
+considered extravagance. As land is here cheap, and capital dear, it is
+necessary to carry on the cultivation of land _extensively_; that is,
+save in capital and labor, and allow the factor nature to perform the
+most possible. The clearing up of untilled land, or the draining of
+swampy land etc., would be frequently injurious here; for it would
+require the use of a very large amount of capital to obtain land of
+comparatively little value.
+
+In large cities, it is customary to build houses high in proportion to
+the dearness of the land.[198-2] Thus, in England, where the rate of
+interest is low and wages high, labor is readily supplanted by capital.
+In countries like the East Indies or China, the reverse is the case. I
+need only call attention to the palanquins used in Asia instead of
+carriages; to the men who in South America carried ore down eighteen
+hundred steps to the smelting furnaces,[198-3] and, on the other hand,
+to the "elevators," so much in favor in England, which are used in
+factories to carry people from one story to another inside to save them
+the trouble of going up stairs.[198-4]
+
+     [Footnote 198-1: The sickle instead of the scythe; careful
+     threshing by hand, and, where the rate of interest is low,
+     threshing by machinery instead of the treading out of the
+     sheaf by oxen. Thus in Paris the scraps from restaurants and
+     soap factories are made into stearin; and the remnants in
+     shawl factories in Vienna are sent to Belgium to be used by
+     cloth manufacturers.]
+
+     [Footnote 198-2: Remarked in ancient times of Tyre, which
+     was situated on a small island, and, therefore, without the
+     possibility of horizontal extension. (_Strabo_, XVI, 757.)]
+
+     [Footnote 198-3: _Humboldt_, N. Espagne II, ch. 5, II, ch.
+     11.]
+
+     [Footnote 198-4: Thus, in England, the safety of railroad
+     trains is not secured as in Germany by a multitude of
+     watchmen, etc.; but by solid barriers, by bridges at every
+     crossing, in other words, by capital.]
+
+
+SECTION CXCIX.
+
+INFLUENCE OF FOREIGN TRADE.
+
+Foreign trade, that great means of coöperation of labor among different
+nations, affords such a remedy in a very special manner. It very
+frequently happens that the undertakers of one country, when a certain
+factor of production seems too dear at home, borrow it elsewhere. Thus,
+for instance, a country with a high rate of wages draws on another for
+labor, and one with a high rate of interest on another for
+capital.[199-1] We elsewhere consider such a course of things from the
+standpoint of the supplying country, which in this way is healed of a
+heavy plethora of some single factor of production which disturbs the
+harmony of the whole. (§§ 187, 259, ff.). But, at the same time, the
+supplied country, considered from a purely economic point of view, reaps
+decided advantages therefrom. If, for instance, a Swiss confectioner
+returns from Saint Petersburgh to his home, after having made a fortune
+in an honest way, no one can say that Russia has grown poorer by the
+amount of that fortune. This man made his own capital; if he were to
+remain in Russia, its national economy would be richer than before his
+immigration thither. Now, it is, at least, no poorer, and has in the
+meantime had the advantage of the more skilled labor of the
+foreigner.[199-2] And, so, when a capitalist living in Germany purchases
+Hungarian land, the national income of Hungary is diminished by the
+amount of the annual rent which now goes to Germany; but it receives an
+equal amount in the interest on capital, provided the purchase was an
+honorable one and the capital given in exchange for the land honestly
+invested.[199-3] If Hungary, in general, had a superabundance of land
+but a lack of capital, the economic advantage is undoubted.[199-4]
+
+These economic rules, indeed, are applicable only to the extent that
+higher and national considerations do not in the interest of all, create
+exceptions to them. "Is not the life more than meat, and the body than
+raiment?" No rational people will allow certain services to be performed
+for them preponderantly by foreigners, even when they can be performed
+cheaper by the latter--the services of religion, of the army, of the
+state, etc. The same is true of landownership; and all the truer in
+proportion as political and legal rights of presentation and other forms
+of patronage are attached to it. Lastly, hypothecation-debts which go
+beyond certain limits, may entail the same consequences as the complete
+alienation of the land;[199-5] and Raynal may have been, under certain
+circumstances, right when he said, that to admit foreigners to subscribe
+to the national debt was equivalent to ceding a province to them.[199-6]
+It is obvious that a great power may do much in this relation that would
+be a risk to a small state.[199-7] [199-8]
+
+     [Footnote 199-1: "The transportation of productive capital
+     and industrial forces from one point where their services
+     are worse paid for, to another where they find a rich
+     reward, will not be apt to be made so long as the
+     equilibrium may be obtained [most frequently much more
+     easily] by the interchange of the products." (_Nebenius_,
+     Œff. Credit, I, 48.) The repeal of the corn laws in England
+     certainly diminished the emigration of English capital.]
+
+     [Footnote 199-2: For an official declaration of the
+     Brazilian state in this direction, see Novara Reise.]
+
+     [Footnote 199-3: Basing himself hereon, _Petty_, Political
+     Anatomy of Ireland, 82 ff., questions the usual opinion,
+     that Ireland suffered so much from absenteeism. He says that
+     a prohibition of absenteeism carried out to its logical
+     conclusion would require every man to sit on the sod he had
+     tilled himself. _Carey_, On the Rate of Wages, 1835, 477,
+     calls English capitalists who draw interest from America,
+     absentees.]
+
+     [Footnote 199-4: The older political economists have, as a
+     rule, ignored this law, and were wont to consider every
+     payment of money to a foreign country as injurious. Thus,
+     for instance, _Culpeper_, Tract against the high Rate of
+     Usury, 1623, 1640, disapproves all loans made from foreign
+     countries, because they draw more money in interest, and in
+     repayment of the principal out of the nation, than they
+     brought into it at first; and all the more, as the loan is
+     generally procured, not in the precious metals, but in
+     foreign goods, of which there is a superabundance in the
+     home country. Similarly _Child_, Discourse of Trade, 1690,
+     79, who claims that the creditor was always fattened at the
+     expense of the debtor. Hence _v. Schröder_, Fürst, Schatz-
+     und Rentkammar, 141, advises that the capital borrowed in
+     foreign countries should be confiscated. Compare, also, _v.
+     Justi_, Staatswirthschaft, II, 461. And yet the very
+     simplest calculation shows, that if a man borrows $1,000 at
+     5 per cent. and makes 10, he is doing a good business with
+     the borrowed capital. This _Locke_, Considerations, 9,
+     recognizes very clearly. Compare, also, _J. B. Say_, Traité,
+     II, ch. 10, and _Hermann_, Staatsw. Unters., 365 seq.]
+
+     [Footnote 199-5: Think of the English creditors in Portugal
+     and the Genoese in Corsica (_Steuart_, Principles, II, ch.
+     29.) Considered simply from an economic standpoint, the
+     Edinburg Review, XX, 358, very clearly demonstrates that
+     England should recruit her army from Ireland, where wages
+     are so much lower than in Great Britain. But how dangerous
+     in a political sense! In 1832, one-fourth of the stock of
+     the United States Bank was in the hands of foreigners, and
+     hence its opponents nick-named it the "British Bank." By the
+     rules of the principal bank in Philadelphia, in 1836, only
+     American citizens were allowed a vote in its proceedings.
+     Similarly in the case of the Bank of France. (_M.
+     Chevalier_, Lettres sur l'Amerique du N. I, 364.) It may be
+     remarked in general, that the older political economists
+     have based correct political views on false economic
+     principles, while the more modern ignore them entirely.]
+
+     [Footnote 199-6: Compare _Montesquieu_, E. des Lois L, XXII,
+     17; _Blackstone_, Commentaries, I, 320.]
+
+     [Footnote 199-7: Thus Austria conceded, in 1854-55, a number
+     of railways to French capitalists, and always favored the
+     purchase of landed estates by small foreign princes. In the
+     latter case, Austrian influence abroad was much more
+     promoted by the measure than was foreign influence in
+     Austria.]
+
+     [Footnote 199-8: Every nationality is not worth the
+     sacrificing of the highest economic advantage or profit to
+     it. Or, would it be preferable to leave the Hottentots and
+     Caffirs, poor, barbarous and heathenish?]
+
+
+SECTION CC.
+
+INFLUENCE OF THE BRANCHES OF INCOME ON THE PRICE OF COMMODITIES.
+
+In relation to foreign trade, in the narrowest sense of the term, fears
+were formerly very frequently expressed and are sometimes even now,
+which in the last analysis are based on the assumption that one country
+might be underbid by another in all branches of commodities.[200-1] This
+is evidently absurd. Whoever wants to pay for foreign commodities can do
+it only in goods of his own. When he pays for them with money, the money
+is either the immediate product of his own husbandry (mining
+countries!), or the mediate product obtained by the previous surrender
+of products of his own. To receive from foreign countries all the
+objects which one has need of, would be to receive them as a gift.
+
+It is just as absurd to fear that the three branches of income in the
+same country's economy should be all relatively high at the same time,
+and competition with foreign countries be thus made more difficult. Rent
+and interest especially in this respect have to demean themselves in
+ways diametrically opposed to each other.[200-2] When trade is entirely
+free, every nation will engage at last in those branches of production
+which require chiefly the productive forces which are cheapest in that
+country; that is which the relatively low level of the corresponding
+branch of income recommends to individual economy and enterprise. The
+merely absolute and personal height of the three branches of income has,
+as we have said, no direct influence on the price of commodities. In
+this respect, all these may be higher in one country than in another.
+Thus, for instance, English landowners, capitalists and workmen may be
+all at the same time in a better economic condition respectively than
+Polish landowners, capitalists and workmen, when the national income of
+England stands to its area and population in general, in a much more
+favorable ratio than the Polish.[200-3]
+
+     [Footnote 200-1: Thus, _Forbonnais_, Eléments du Commerce I,
+     73. _J. Moser_, Patr. Ph., I, No. 2.]
+
+     [Footnote 200-2: For a thorough refutation of the error that
+     everything is dearer in England than in France, see Journ.
+     des Econ., Mai, 1854, 295 seq. A distinguished architect
+     assured me in 1858, that a person in London could build
+     about as much for £1 as for from 6 to 7 thalers in Berlin;
+     only the aggregate expense in both countries is made up of
+     elements very different in their relative proportions.]
+
+     [Footnote 200-3: We very frequently hear that countries with
+     high wages must be outflanked in a neutral market by
+     countries with a low rate of wages. _Ricardo's_ disciples
+     reject this, because a decrease in the profit would put the
+     undertaker in a condition to bear the loss caused by the
+     high wages paid. See Report of the Select Committee on
+     Artisans and Machinery. _Senior_ ridicules such reasoning
+     very appropriately by inquiring: "Might not the loss enable
+     him to bear the loss?" Outlines, 146. And so _J. B. Say_
+     thinks that wages are always lowest when undertakers are
+     earning nothing. The truth is rather this: a country with a
+     relatively high rate of wages cannot, in a neutral market,
+     offer those commodities the chief factors required for the
+     production of which is labor; but the comparatively low rate
+     of interest or low rents, or the lowness of both found in
+     connection therewith, must fit it to produce other
+     commodities very advantageously. If, therefore, the rate of
+     wages rises, the result will be to divert production and
+     exports into other channels than those in which they have
+     hitherto flowed. The old complaint of Saxon agriculturists,
+     that there is a lack of labor in the country, is certainly
+     very surprising in a nation as thickly populated as Saxony.
+     But the remedy proposed by the most experienced
+     practitioners consists chiefly in a higher rate of wages to
+     enable workmen to care for themselves in old age, the
+     introduction of the piece-work system and an increase of
+     agricultural machines. But it seems to me, that the whole
+     situation there points to the advantage of in part limiting
+     the large farming hitherto practiced to live-stock raising
+     and other branches in which labor may be spared, and in part
+     of replacing it, by small farming of plants which are
+     objects of trade.
+
+     Many points belonging to this subject have been very well
+     discussed by _J. Tucker_, in his refutation of _Hume's_
+     theory on the final and inevitable superiority of poor
+     countries over rich ones in industrial matters. (Four Tracts
+     on political and commercial Subjects, 1774, No. 1; _L.
+     Lauderdale_, Inquiry, 206.)]
+
+
+SECTION CCI.
+
+HARMONY OF THE THREE BRANCHES OF INCOME.--INDIVIDUAL DIFFERENCE IN THEM.
+
+As national-economical civilization advances, the personal difference of
+the three branches of income is wont to become more and more sharply
+defined.[201-1] The struggle between landowners, farmers and workmen,
+which Ricardo necessarily assumed, did not exist at all in the middle
+ages; since landowners and farmers were then usually one and the same
+person, and since workmen, either as slaves or peasants, were protected
+against competition properly so called. And so in the industry of that
+time, based on the trades or on domestic industry.[201-2] [201-3]
+
+When, later, the division of labor increases, all the differences of
+men's aptitudes are turned to more advantage, and are more fully
+developed. In the same proportion that a working class is developed, the
+members of which are nothing but workmen, and can scarcely hope to
+possess capital or land,[201-4] there grows up, side by side with it, a
+class of mere capitalists, who come to obtain an ever-increasing
+importance.
+
+Considered from a purely economic point of view, this transition has its
+great advantages. How much must the existence of a special class of
+capitalists facilitate the concentration of capital and the consequent
+promotion of production, as well as its (capital's) price-leveling
+influx and outflow! Even "idle" capitalists have this of good, that,
+without them, no competent man, destitute of means could engage in any
+independent enterprise. When, indeed, the gulf between these two classes
+passes certain bounds, it may, politically and socially, become a great
+evil. (§ 63.)[201-5]
+
+     [Footnote 201-1: Among nations in their decline, rent and
+     interest fall into one possession again, because capitalists
+     here are wont to buy the land. (_Roscher_, Nationalökonomik
+     des Ackerbaues, § 140 ff.)]
+
+     [Footnote 201-2: Related to this peculiarity of the middle
+     ages is the fact that the canon law looked with disfavor on
+     the personal separation of the three factors of production.
+     So also in the prohibition of the _Weddeschat_ referred to §
+     161, instead of rent-purchase (_Rentekauf_), also by
+     extending the idea of partnership to a number of
+     transactions which are only forms of loan. (_Endemann_ in
+     _Hildebrand's_ Jahrb., 1863, 176 ff.) Antiquity also, with
+     the independence of its οἶκος, with its slavery, etc., had
+     not developed the difference between the three branches of
+     industry to any extent. _Rodbertus_, in _Hildebrand's_
+     Jahrbb., 1865, I, 343.]
+
+     [Footnote 201-3: If older writers, like _Steuart_, etc.,
+     speak so little of capital, labor and rent, and so much of
+     city and country, it is not on account of ignorance simply.
+     The contrast between the latter was then much more important
+     than to-day, and that between the former much less
+     developed. When, indeed, _Colton_, Public Economy of the
+     United States, 1848, 155 ff., claims that because in America
+     the three branches of income do not exist in so separated a
+     condition as in Europe, therefore European Political Economy
+     and its theories are not applicable to America, he forgets
+     that science should not be simply a description or
+     impression made of the reality, but an analysis of it.]
+
+     [Footnote 201-4: It is a very characteristic fact that, in
+     our days, when workmen are spoken of, it is generally day
+     laborers and tradesmen that are understood. In Prussia, in
+     1804, 17.8 per cent. of the population earned their living
+     by letting out their labor; in 1846, 22.8 per cent. as
+     day-laborers, servants, journeymen, tradesmen and factory
+     hands. (_Dieterici._)]
+
+     [Footnote 201-5: _Ricardo_, Principles, ch. 4, recognizes
+     the bright side as well as _Sismondi_, N. P., I, 268, or
+     _Buret_, De la Misère des Classes laborieuses en Angleterre
+     et en France, 1841, its dark side. _Sismondi_ thinks that
+     land and the capital employed in its cultivation are found
+     to the greatest disadvantage in the hands of the same
+     person. The existence of a thrifty peasant class (also of a
+     class of tradesmen) is one of the best means to prevent the
+     too wide separation of the three branches of income.]
+
+
+SECTION CCII.
+
+HARMONY OF THE THREE BRANCHES OF INCOME.--NECESSITY OF THE FEELING OF A
+COMMON INTEREST.
+
+Every class corresponding to a branch of the national income must live
+with the consciousness that its interests coincide with the economic
+interests of the whole nation. Whenever the entire national income
+increases, each branch of it may increase without any injury to the
+others, and, as a rule, does really increase.[202-1] But it is possible
+that the land owning class may be specially dependent on the prosperity
+of the whole people. How easy it is for workmen to emigrate; and how
+much easier yet for capital! England, to-day, can scarcely carry on a
+great war, in which it would not, at least at the beginning, have to
+fight English capital.[202-2] Where the treasure is, the heart is also!
+The land alone is immovable. It alone cannot be withdrawn from the
+pressure of taxation or from the distress of war. It alone cannot flee
+into foreign parts.[202-3] [202-4] At the same time, it cannot be denied
+that the possibility of being able to carry one's fortune out of a
+country in one's pocketbook and to be able to procure there with one's
+money the same conveniences, customs, etc., to which one was accustomed
+at home, is, under certain circumstances, an important element of
+political and religious freedom. Moreover, the bright side and the dark
+of every class of owners, especially the dread of all unnecessary and
+also of all necessary change, must be common to rent and interest.
+Hence, where there is a marked and well-defined separation of the
+branches of income, it will be always considered a difficult but
+unavoidable problem, how to enable mere labor to take an active part in
+the affairs of the state.[202-5]
+
+In times when calm prevails (not, however, in transition-crises such as
+are referred to in § 24), there is a public opinion concerning merit and
+reward, we might say a public conscience, by which a definite relation
+of the three branches of income to one another is declared equitable.
+Every "fair-minded man" feels satisfied when this relation is realized,
+and this feeling of satisfaction is one of the principal conditions
+precedent to the prosperity of production; inasmuch as upon it depends
+the participation (_Theilnahme_) of all owners of funds and forces.
+Every deviation from this relation or proportion is, of course, a
+misfortune,[202-6] but never so great as when it takes place at the
+expense of the wages of labor. It should never be forgotten that rent is
+an appropriation of the gifts of nature, and that interest is a further
+fruit obtained by frugality from older labor already remunerated.
+Besides, the rate of wages when high, generally adds to the efficiency
+of labor, which cannot be claimed for interest or rent.[202-7] The best
+means to preserve the harmony of the three branches of income is,
+however, universal activity. "Rich or poor, strong or weak, the idler is
+a knave." (_J. J. Rousseau._)
+
+     [Footnote 202-1: The contrast between _Adam Smith_, at the
+     end of the first book, and _Ricardo_, ch. 24, in regard to
+     this point, is very characteristic of the times of those two
+     authors. According to _Smith_, the private interests of the
+     landowners and laborers run entirely parallel; only both
+     classes are easily deceived as to their own interests.
+     Capitalists understand their own interest very well, and
+     represent it with great energy; but their interest is in
+     opposition to the common good, in so far as their profit
+     among a poor and declining people is higher than among a
+     rich and flourishing one. _Ricardo_, on the other hand,
+     thinks that the interest of the landowners is opposed to
+     that of all others for the reason that they desire that the
+     cost of the production of wheat etc. should be as high as
+     possible.
+
+     Related to this is the fact that, in _Adam Smith's_ time,
+     the new theory of rent remained almost unnoticed, but that
+     after 1815, it became rapidly popular. In a similar way, the
+     socialists of the present time are wont to charge the
+     undertaking class with opposing their own interests to those
+     of the whole people, meaning by the whole the majority. (§
+     196 a.)]
+
+     [Footnote 202-2: Towards the end of the 14th century the
+     great Flemish merchants always sided with the absolutism of
+     France in opposition to their own _Artevelde_.]
+
+     [Footnote 202-3: Hence it is, that in so many constitutions,
+     charters of cities, etc., the exercise of the higher rights
+     of citizenship is conditioned by the possession of a certain
+     quantity of land, and that landownership is considered as a
+     species of public function.
+
+     I read, a short time ago, the life of a North-German
+     noblemen who, in 1813, had fought bravely against the
+     French, "although he was a man of large estates, and the
+     enemy might therefore very easily have laid hands on them."
+     If this "although" of his eulogist expressed the actual
+     feeling of large landed proprietors, a great many old
+     political institutions would have lost all foundation.
+
+     _Ad. Müller_ was of opinion that the rights of
+     primogeniture, etc., might be an obstacle in the way of the
+     development of the net income of a nation's economy; but
+     that they gave to the state and to the national life the
+     warlike tone so necessary to them, etc. (Elemente, II, 90.)]
+
+     [Footnote 202-4: "The Roman capitalists on whom Pompey
+     counted, left him in the lurch at the moment of danger,
+     because Cæsar destroyed only the constitution, but respected
+     their business relations." (_K. W. Nitsch._)]
+
+     [Footnote 202-5: _Kosegarten_, Nat. Oek., 186, thinks that,
+     on account of the struggle between the labor interest and
+     the interest of capitalists, in our times, the "fourth
+     estate" is not as well represented by persons belonging to
+     the propertied classes as the constitutionalist party
+     thinks. And in fact, _Jarke_, Principienfragen, 1854, 197,
+     would have it represented by the government, in order to
+     prevent the struggle between rich and poor. See
+     _Cherbuliez_, Riche ou Pauvre, p. 242 seq.]
+
+     [Footnote 202-6: _A. Walker_ shows, in a very happy manner,
+     how no misfortune, however great, whether it come from
+     heaven or from earth, in the shape of pestilence, drought,
+     flood or oppressive taxation, so rapidly and hopelessly
+     ruins a nation's economy as when the harmony which should
+     exist between capital and labor is disturbed by foul play or
+     legal frauds between labor or capital and their reward. (Sc.
+     of Wealth, 66.)]
+
+     [Footnote 202-7: Compare _Lotz_, Revision, III, 322 ff.,
+     327, 334 ff. Handbuch, I, 511 ff. _Lafitte_, Sur la
+     Réduction de la Rente, 56. _Fuoco_ exaggerates this into the
+     principle: _che la distribuzione, e non la produzione, sia
+     la prima e principal operazione in economia_. (Saggi
+     economici, II, p. 44.)]
+
+
+
+
+CHAPTER VII.
+
+DISTRIBUTION OF NATIONAL INCOME.
+
+
+SECTION CCIII.
+
+EFFECT OF AN EQUAL DIVISION OF THE NATIONAL INCOME.
+
+The best distribution of the national income among a people is that
+which enables them to enjoy the greatest amount and variety of real
+goods, and permanently to produce real goods in an increasing quantity
+and variety.
+
+If the income of a people were divided equally among all, each one would
+indeed, be, to a very great extent, independent of all others. But then,
+no one would care to devote himself to the coarser and less agreeable
+occupations, and these would be either entirely neglected, or people
+would have to take turns in engaging in them.[203-1] (§ 9.) And thus
+would disappear one of the chief advantages of the division of labor,
+viz: that the higher orders of talent are devoted to the higher orders
+of labor. Besides, it is very doubtful, whether, under such
+circumstances, there would still be any solvent (_zahlungsfähige_)
+demand for the achievements of art.
+
+Nor would the saving of capital prosper, where such equality prevailed.
+Most men consider the average outlay of their equals as an unavoidable
+want, and save only to the extent that they possess more than others of
+their class. If, therefore, every one had an equal income, no one would
+consider himself in a condition to save.[203-2] The same consideration
+would deter most men from every economic venture, and yet no great
+progress is possible where no venture is made.[203-3] [203-4]
+
+     [Footnote 203-1: According to _Schäffle_, System, II, 379
+     ff., "the distribution of the social return of production
+     which conduces to the attainment of the highest measure of
+     civilization in the moral association of men and in all the
+     grades of that association, and thereby to the satisfaction
+     of all true human wants in the highest degree." Thus only
+     can a satisfactory line of demarkation be drawn between the
+     profit of capital and the wages of labor (384).]
+
+     [Footnote 203-2: See _Aristoph._, Plut., 508 ff. Not taken
+     into consideration sufficiently by _Benjamin Franklin_, in
+     his eulogy of the equality of property: The internal State
+     of America, 1784.]
+
+     [Footnote 203-3: The essential characteristic of the desert
+     is, according to _Ritter_, Erdkunde, I, 1019 seq., its
+     uniformity. No break in the horizontal plain, and hence no
+     condensation of atmospheric vapor into bodies of water of
+     any considerable size. The composition of the soil is
+     everywhere the same; nothing but masses of silex and salt,
+     hard and sharp. Lastly, extreme mobility of the surface,
+     which undulates with every wind, so that no plant can take
+     root in it. Nearly every feature in this picture finds its
+     analogon in the extreme political and economic equality of
+     men.]
+
+     [Footnote 203-4: _Les supériorités, qui ne sont dues qu'à,
+     un usage plus intelligent et mieux réglé de nos facultés
+     naturelles, loin d'être un mal, sont un véritable bien.
+     C'est dans la plus grande prospérité, qui accompagne un plus
+     grand et plus heureux effort, qu'est le principe de tout
+     développement._ (_Dunoyer_, Liberté du Travail, IV, 9, 10.)
+     But, indeed, the rich man should never forget that society
+     "inasmuch as it permits the concentration of wealth in his
+     hands, expects that he will employ it to better advantage
+     than the mass of mankind would if that same wealth were
+     equally divided among them." (_Brentano._)]
+
+
+SECTION CCIV.
+
+DISTRIBUTION OF NATIONAL INCOME.--MONEYED ARISTOCRACIES AND PAUPERISM.
+
+The extreme opposite of this, when the middle class disappears and the
+whole nation falls into a few over-rich men and numberless proletarians,
+we call the oligarchy of money, with pauperism as the reverse of the
+medal. Such a social condition has all the hardship of an aristocracy
+without its palliatives. As it is, as a rule, the offspring of a
+degenerated democracy,[204-1] it cannot in form depart too widely from
+the principle of equality. Only get rich, they cry to the famishing
+poor; the law puts no obstacle in your way, and you shall immediately
+share our position.[204-2] Here the uniformity and centralization of the
+state, which are an abomination in the eyes of genuine aristocracy, are
+carried to the extreme. Capital takes the place of men, and is valued
+more than men. All life is made to depend on the state, that its
+masters, the great money-men, may control it as they will. The falling
+away of all restrictions on trade, and of all uncommercial
+considerations relating to persons and circumstances, gives full play to
+capital, and speculators seek to win all that can be won. And, indeed,
+all colossal fortunes are generally made at the expense of others,
+either with the assistance of the state-power or by speculation in the
+fluctuations of values.[204-3] The dependence of proletarians on others
+is here all the greater, because from a complete absence of capital and
+land, so far as they are concerned, they are compelled, uninterruptedly,
+to carry their entire labor-force to market; and also because the supply
+of labor is made in masses embracing a large number of individuals,
+while the demand for labor lies in the hands of very few, and may be
+very readily and systematically concentrated.[204-4] So great and
+one-sided a dependence is, for men too far removed from one another for
+real mutual love, doubtless one of the greatest of moral temptations. It
+is as easy a matter for the hopelessly poor to hate the law, as it is
+for the over-rich to despise it.[204-5] Under such circumstances, the
+contagious power of communism, the dangers of which to order and freedom
+we have treated of in § So, is great. There is a dreadful lesson in the
+fact of history, that six individuals owned one-half of the province of
+Africa, _when Nero had them put to death_![204-6] Externally, a moneyed
+oligarchy will always be a weak state. The great majority who have
+nothing to lose take little interest in the perpetuation of its
+political independence. They rather rejoice at the downfall of their
+oppressors hitherto, and are cheered by the hope of obtaining a part of
+the general plunder.[204-7] The rich, too, separated from the neglected
+and propertyless masses of the nation, and rightly distrustful of them,
+begin to forget their nationality, and to balance its advantages against
+the sacrifices necessary to preserve it. But, a merely materialistic
+calculation leads doubtless to the conclusion, that universal empire is
+the most rational form of the state. The world-sovereignty of Rome was,
+by no circumstance more promoted than by the struggles between the rich
+and the poor, which devastated the _orbis terrarum_, and in which the
+Romans generally sided with the property classes.[204-8] [204-9] [204-10]
+[204-11] However, the worst horrors of the contrast here described can
+occur only in slave-countries. Compare _Roscher_, Nationalökonomik des
+Ackerbaues, § 141.
+
+     [Footnote 204-1: The more the lower classes degenerate into
+     the rabble, and the more the national sovereignty comes into
+     the hands of this rabble, the easier will it become for the
+     rich to buy up the State.]
+
+     [Footnote 204-2: In the middle stages of the nation's
+     economy, such as are described in §§ 62, 66, 90, 207, in
+     which even the relative advantages of industry on a large
+     scale over industry on a small scale, are not much developed
+     the making political rights dependent on the possession of a
+     certain amount of property is certainly a means of promoting
+     equality. Hence, therefore, a reconciliation between the
+     differences of class created by birth, may be effected for a
+     long time here.]
+
+     [Footnote 204-3: _Hermann_, Staatsw. Untersuchungen, II,
+     Aufl. 136.]
+
+     [Footnote 204-4: _Necker_, Législation et Commerce des
+     Grains, 1775,1. passim. Compare _Bacon_, Serm fideles, 15,
+     29, 34, 39.]
+
+     [Footnote 204-5: _Schiller's_ terrible words:
+
+          "_Etwas muss er sein eigen nennen,
+            Oder der Mensch wird morden und brennen._"
+
+     --i. e., "Something must he call his own, or man will murder
+     and burn."
+
+     It is one of _J. G. Fichte's_ fundamental thoughts that as
+     all property is based on mutual disclaimer, the person who
+     has nothing of his own, has disclaimed nothing, and
+     therefore reserves his original right to everything.
+     (Geschlossener Handelstaat., Werke, III, 400, 445.)]
+
+     [Footnote 204-6: _Plin._, H. N., XVIII, 7.]
+
+     [Footnote 204-7: How frequently this circumstance turned to
+     the advantage of the Germans during the migration of
+     nations! Compare _Salvian_, De Gubern, Dei, VII. Very
+     remarkable answer given by a Roman taken prisoner by Attila,
+     why it must be more agreeable to live among the Huns than in
+     the over-civilized Roman Empire: Prisci legatio, in
+     _Niebuhr_, Corp. histor. Byzant., I, 191 ff. And thus the
+     conquest of Constantinople by the crusaders, took place amid
+     the jubilation of the populace and of the country people:
+     _Nicetus_, Chron. Hist. Urbs capta, § 11, 340. This law of
+     nature becomes most apparent when one compares the
+     preponderating power of Rome against Carthage, with its
+     weakness against the Cimbri and Mithradates. May not
+     Hannibal have been to his own country a phenomenon like that
+     which Cæsar was afterwards to Rome? A healthy and united
+     Carthage he certainly could have held against Italy.]
+
+     [Footnote 204-8: On the tendencies of the later times of the
+     Jewish monarchy toward an oligarchy of money, see _Amos_, 2,
+     6 seq.; 6 1 ff.; 8, 5 ff.; _Micha_, 2; 2 _Isaias_, 5, 8 seq.
+     Compare _Nehem._ 5. While Exodus, 30 and 38, mentions over
+     663,000 taxable men, the ten tribes comprising the kingdom
+     of Israel had only 60,000. XII Kings, 15, 19. _Ewald_,
+     Geschichte des Volkes Israel, II, 2, 320.]
+
+     [Footnote 204-9: The spirit of the Grecian moneyed oligarchy
+     is best revealed by _Plato_, De Republ., VIII, and
+     _Aristotle_, Polit., III, VI, passim, the first of whom
+     considers the contrast between rich and poor as in itself
+     demoralizing (IV, 422). All that can be called by the name
+     of tradition, the political faith of a people, and the
+     national feeling of right, had, in the Grecian world, been
+     transformed into mere reasoning and concerned itself, with
+     frightful exclusiveness, to the contrast existing between
+     rich and poor. Compare _Aristot._, Pol., II, 4, 1, with
+     _Droysen_, Gesch. des Hellenismus, II, 496 etc., and the
+     citations from _Menander_ in _Stob._, Serm., LXXXIX, 503, in
+     which gold and silver are proclaimed almighty. It is a
+     remarkable proof of the _omne venalia esse_ in Greece that
+     _Thucydides_ (II, 65) lauds even _Pericles_, especially for
+     his incorruptibility. _Demosthenes_ says of his
+     contemporaries, that it excited envy when any one was
+     bribed, laughter when he confessed it; that he who was
+     convicted of it (bribery) was pardoned, and he who blamed
+     it, hated. (Phil., II, 121.) Compare the list in _Demosth._,
+     Pro. Cor., 324; _Pausan_, III, 10. In Athens, on the
+     occasion of the census-constitution imposed forcibly on the
+     state by _Antipater_, that in a population of 21,000
+     citizens, only 9,000 had a property worth 2,000 drachmas or
+     more, that is, enough for a man to live on in the most
+     niggardly way, on the highest interest it would yield. If,
+     in addition to this, account be taken of the large number of
+     slaves, the small number of the property class is all the
+     more surprising, inasmuch as Lycurgus' financial
+     administration bears evidence that the people were in a
+     flourishing and comfortable condition; that afterwards,
+     peace for the most part prevailed, and that Alexander's
+     victories enabled Grecian commerce to make large gains.
+     Compare _Boeckh_, Staatsh. IV, 3, 9.
+
+     In Sparta, the governing class finally numbered only
+     700 families, 100 of which owned all the land, and 600
+     of which were, therefore, only noble proletarians. It
+     is well known that the social attempts at reform by
+     Agis and Kleomenes only precipitated the downfall of
+     the state. (_Plutarch_, Agis and Kleomenes.) _Aratos_
+     owed a great part of the consideration in which he was
+     held to the reputation which he obtained by protecting
+     the property of the Sicyonian exiles (_Thirlwall_,
+     History of Greece, VIII, 167), while on the other hand,
+     men like _Agathocles and Nabis_ supported their faction
+     by persecution of the rich, new debtor-laws and new
+     division of land. (_Polyb._, XIII, 6, XVI, 13, XVII,
+     17, XXVI, 2; _Livy_, XXXII, 38, 40, XXXIV, 31, XXXVIII,
+     34; _Plutarch_, Cleom, 20.) _Livy_ expressly says that
+     all the _optimates_ were in favor of the Romans, and
+     that the multitude wanted _novare omnia_ (XXXV, 34). On
+     the frightful struggle between these opposite parties,
+     on the revolutions and counter revolutions, see also
+     _Polyb._, XIII, 1, 2; XVIII, 36 ff., XXX, 14; XXII, 21;
+     XXXVIII, 2, 3; _Diodor._, XIX, 6, 9; _Exc._, 587, 623;
+     _Livy_, XLI, 25, XLII, 5; Pausan, VII, 14. In Bœotia,
+     no one was for 25 years, chosen by the people for the
+     higher offices, from whom they did not expect a
+     suspension of the administration of justice in the
+     matter of crimes and debts, as well as the spending of
+     the national treasure. (_Polyb._, XX, 14, 5, 6.) The
+     events at Corinth, before its conquest by the Romans,
+     forcibly remind one of the Paris Commune of 1871. This
+     decline had, as usual, begun earliest in the colonies:
+     thus, in Sicily, even in _Thucyd._, V, 4. Milesian
+     struggle off the πλουτὶς and χειρομάχα in _Plutarch_,
+     Qu. Gr., 32; _Athen._, XII, 524.]
+
+     [Footnote 204-10: The disappearance of the middle class in
+     Rome, between the second and third Punic war, was brought
+     about chiefly by the great foreign conquests made by it. An
+     idea of the wealth which the governors of the provinces
+     might extort may be formed from this among other facts, that
+     Cicero originally demanded against Verres a fine of
+     5,000,000 thalers. (_Cic._, in Verrem Div., 5.) Verres is
+     related to have said, that he would be satisfied if he could
+     retain the first year's booty; that during the second, he
+     collected for his defenders; and during the third, for his
+     judges! (_Cic._, in Verr., I, 14.) Even _Cicero_ became
+     richer within the space of one year, in Cilicia, where it
+     was well known he was not oppressive, by 110,000 thalers,
+     which sum does not include numerous presents, pictures, etc.
+     (_Drumann_, Gesch. Roms., VI, 384.) On the frightful
+     oppression and extortion practised by Brutus (!) in Asia,
+     see _Cicero_, ad. Att, V, 21; VI, 1. _Sallust_, in his
+     Jugurtha, has shown how such men waged war, and to what
+     extremes their well-deserved want might push them in his
+     Catiline. _Patricium scelus!_ Most of the senators were in
+     debt to Crassus; and this, together with his great political
+     insurance-activity and power in elections, criminal cases at
+     law, etc., it depended that he, for a time, figured beside
+     Cæsar and Pompey.
+
+     The wealth of these important personages must, and that not
+     only relatively, have made the poor poorer and their luxury
+     excited the covetousness of the people; but especially the
+     great number of slaves they kept, combined with their
+     pasturage system of husbandry, which rapidly spread over all
+     of Italy after the provinces had emptied their granaries to
+     supply the wants of the sovereign people, must have made it
+     less and less possible for the proletarians to live by the
+     work of their hands. Previously, the lower classes of the
+     free born had been exempted from the military service, while
+     slaves were conscripted for the fleet. Now, all this was
+     changed; and thus was taken away one of the chief causes
+     which had made the labor of free day laborers more
+     advantageous on the larger estates. (_Nitzsch_, Gracchen,
+     124 ff., 235 ff.) The spoils of war and conquest caused the
+     higher middle class to prefer to engage in the usurious
+     loaning of money rather than in industry which would much
+     more rapidly have formed a small middle class. (_Mommsen_,
+     R. G. I, 622 ff.)
+
+     Hence, the _misera ac jejuna plebecula, concionalis hirudo
+     aerarii_, according to _Cicero_, ad Att., I, 16, 6. At a
+     time, when the Roman census showed a population of over
+     1,500,000, Philippus, 104 before Christ, otherwise a
+     "moderate" man, could claim that there were not 2,000
+     citizens who had any property. (_Cic._, de Off., II, 21.)
+     True, those few were in such a position, that Crassus would
+     allow that those only were rich, who could feed an army at
+     their own expense. (_Cicero_, Parad., VI, 61; _Plin._, H.
+     N., XXXIII, 47.) Concerning the colossal private fortunes
+     under some of the earlier imperators, see _Seneca_, De
+     Benef., II, 27; _Tacit_., Ann., XII, 53, XIII, 32; XIV, 35;
+     Dial. de Causis, 8, _Dio C._, LXIII, 2 seq.
+
+     The clients of the time, that is the numerous poorly paid
+     idlers treated as things of little value, in the service of
+     the great, correspond, on a small scale, to the position of
+     the great crowd in relation to the emperor. Compare
+     _Friedländer_, Sittengeschichte Roms., I, 296 ff. As late as
+     the West-Gothic storm, there were many houses which drew
+     4,000 pounds in gold, and about 1/3 as much in kind, from
+     their estates, per annum. (_Plut._, Bibl. Cod., 80, 63,
+     Bekk.) Goddess Pecunia Majestas divitiarum, in _Juvenal_, I,
+     113.
+
+     If we take the Roman proletariat in its wider extent, the
+     most frightful picture it presents is its slave-wars. Such a
+     war Sicily had shortly before the _tribunate_ of the elder
+     Gracchus, cost over a million (?) livres; and at the same
+     time there was a great uprising of slaves desolating Greece.
+     (_Athen._, VI, 83, 87 ff., 104.) A second war broke out in
+     the time of Cimbri. But the most frightful was that under
+     Spartacus, who collected 100,000 men, and the course of this
+     uprising will always remain a type of proletarian and slave
+     revolts. It originated among the most dangerous class of
+     slaves, most dangerous because best prepared for the
+     struggle, the gladiators, and among the immense _ergastula_,
+     where they were held together in large masses. It spread
+     with frightful rapidity, because the combustible material on
+     which it fed was everywhere to be found. It was conducted
+     with the most revolting cruelty. What the slaves demanded
+     before all else was vengeance, and what dread had a
+     gladiator of a death unaccompanied by torture?
+
+     After the first successes of the slaves dissensions broke
+     out among them. Such hordes can nowhere long preserve a
+     higher object than the momentary gratification of their
+     passions--a fact which shields human society from their
+     rage. Piracy, also, is another side of this proletarian
+     system. It found its strongest aliment in the system of
+     spoliation practiced by the Romans in Asia Minor. The
+     oppressed along the whole coast, joined the pirates
+     "preferring to do violence rather than to suffer."
+     (_Appian_, B. Mithr., 92, _Dio C._, XXXII, 3.) The temples
+     and the wealthy Romans were in special danger. But the worst
+     feature in the horrible picture was that many of the great
+     shared in the spoils with the robbers. They bought slaves
+     and other booty from them at mock prices, even close by the
+     gates of Rome. (_Strabo_, XIV, 668 seq., _Dio C._, XXXVI,
+     5.) Precisely as the slave-wars were looked upon with
+     pleasure by the poorer free men. Incendiarism was one of the
+     chief weapons of mutinous pauperism. (_Drumann_, IV, 282.)
+     The celebrated bacchanalian trial and the questions of
+     poisoning which followed it as a consequence (186 before
+     Christ) may be looked upon, in Rome, as the first marked
+     symptoms of the disruption between the oligarchy of money
+     and the proletariat. This put the morality of the higher
+     classes in a bad light, while, at the same time, a large
+     slave conspiracy in Apulia, which was not suppressed until
+     the year 185, exhibited the reverse of the picture. Cato,
+     the censor, endeavored to oppose this tendency by high
+     sumptuary taxes, and by establishing proletarian colonies.
+     At the same time we see the various parties among the
+     nobility uniting and the publicans joining them. (_Nitzsch_,
+     Gracchen, 124 ff.) The history of the last hundred years of
+     the Republic turns chiefly on the three great attempts made
+     by the proletariat to overthrow the citadel of the moneyed
+     oligarchy, under the Gracchi, under Marius and under Cæsar.
+     The last was permanently successful but entailed the loss of
+     the freedom of both parties.
+
+     Among the pretty nearly useless remedies employed, besides
+     those described in § 79, I may mention the following also:
+     the great number of agrarian laws intended to lessen estates
+     of too great extent owned by one person, and to restore a
+     free peasant population, in the years 133, 123, 100, 91, 59
+     before Christ; the law in Hannibal's time (_Livy_, XXI, 63)
+     that no senator should own a ship with a capacity of more
+     than 300 amphora; the provision (_Sueton._, Caes., 42) that
+     all great herd-owners should take at least one-third of
+     their shepherds from the ranks of freemen; the many laws _de
+     repetundis_, the first of which was promulgated 149 before
+     Christ, intended to protect the provinces against spoliation
+     by the governors; the L. Gabinia, 56 before Christ, which
+     prohibited the loaning by the provinces in Rome; lastly, a
+     rigid enforcement of police provisions against slaves,
+     especially against their bearing arms, which were carried to
+     such an extent, that slaves who had killed a boar with a
+     spear were crucified. (_Cicero_, in Verr., II, 3.) The chief
+     rule of every real oligarchy of money is, while they hold
+     the lower classes in general under their yoke with great
+     severity, to keep dangerous elements in good humor at the
+     expense of the state. Among these are especially the rabble
+     in large cities and the soldiery. Compare _Roscher_,
+     Betrachtungen über Socialismus und Communismus, 436, 437.]
+
+     [Footnote 204-11: In medieval Italy, also, popular freedom
+     was lost through a moneyed oligarchy and a proletariat.
+     _Popolo grasso_ and _minuto_ (_bourgeoisie_--_peuple_) in
+     Florence. The former were reproached especially with the
+     breach of trust in the matter of the public moneys
+     (_Sismondi_, Gesch. der Ital. Republiken, II, 323, seq.),
+     which reminds one of the French cry, _corruption_ in 1847.
+     _Machiavelli_ gives a masterly description of the class
+     contrasts during the last quarter of the fourteenth century,
+     in his Istoria Fiorent., III, a. 1378, 4. The poor, whose
+     spokesmen recall the most desperate shibboleths of modern
+     socialists, dwell principally on this, that there is only
+     one important difference, that between rich and poor; that
+     all men are by nature entirely equal; that people get rich
+     only through deceit or violence; that the poor want revenge
+     etc. It is significant how, in Florence, the largest banker
+     finally became absolute despot, and that contemporaneously
+     in Genoa, the Bank of St. George, in a measure, absorbed the
+     state; the former supported by numerous loans made to
+     influential persons like Crassus (_Machiavelli_, Ist. Fior.,
+     VII); the latter by the overstraining of the system of
+     national debt.]
+
+
+SECTION CCV.
+
+DISTRIBUTION OF THE NATIONAL INCOME.--HEALTHY DISTRIBUTION.
+
+Hence a harmony of the large, medium and small incomes may be considered
+the indispensable condition of the economic prosperity of a
+people.[205-1] This prosperity is best secured when the medium-class
+income prevails, when no citizen is so rich that he can buy the others,
+and no one so poor that he might be compelled to sell himself. (_J. J.
+Rousseau._)[205-2] Where there is not a numerous class of citizens who
+have time enough to serve the state even gratis, as jurymen, overseers
+of the poor, municipal officers, representatives of the people etc.
+(compare § 63), and property enough to be independent of the whims and
+caprices of others, and to maintain themselves and the state in times of
+need, even the most excellent of constitutions must remain a dead
+letter. Nor should there be an entire absence of large fortunes, and
+even of inherited large fortunes. The changes of ministry which
+accompany constitutional government are fully possible only when the
+choice of men who would not lose their social position by a cessation of
+their salaries as public functionaries is not altogether too
+limited.[205-3] Thus the transaction of the most important political
+business, especially that which relates to foreign affairs, requires a
+peculiar elasticity of mind, and a capacity for routine on the grandest
+scale, which with very rare exceptions, can be acquired only by
+habituation to them from childhood, and which are lost as soon as the
+care for food is felt. The bird's-eye-view of those who are born "great"
+does not, by any means, embrace the whole truth of human things, but it
+does a very important side of it. Among this class, as a rule, it is
+easiest to find great party leaders, while leaders who have to be paid
+by their party, generally become in the long run, mere party
+tools.[205-4] It is true that it requires great intellectual and moral
+power to resist the temptations which a brilliant hereditary condition
+presents; temptations especially to idleness, to pride and debauchery.
+For ordinary men, it is a moral and, in the end, an economic blessing,
+that they have to eat their bread in the sweat of their brow,[205-5] and
+that they can grow rich only by long-continued frugality.[205-6]
+However, the distribution of the national income, and every change in
+that same distribution, constitute one of the most important but at the
+same time one of the most obscure departments of statistics.[205-7] When
+inequality increases because the lower classes absolutely decline, there
+is no use in talking any longer about the prosperity of the
+nation.[205-8] It is different, of course, when only the higher classes
+become, relatively speaking, higher yet. But even this latter kind of
+inequality may operate disastrously, inasmuch as it nourishes the most
+dangerous tendency of democracy, that of envy towards those who are
+better off.
+
+     [Footnote 205-1: _Verri_ Meditazioni, VI.]
+
+     [Footnote 205-2: _Aristotle's_ view that, in a good state,
+     the middle class should preponderate. (Polit. IV, 6, Sch.)
+     _Sismondi_ says: _la richesse se réalise en jouissances;
+     mais la jouissance de l'homme riche ne s'accroît pas avec
+     ses richesses_. (Etudes sur l'Economie politique, 1837, I,
+     15.)]
+
+     [Footnote 205-3: If state offices were to be filled by
+     doctors or lawyers who live by their practice, after a time,
+     only those could be had who had no large practice to
+     sacrifice, that is, beginners or obscuranti.]
+
+     [Footnote 205-4: Per contra, see _Bazard_, Doctrine de Saint
+     Simon, 323. But _Sismondi_ is certainly right: _nous ne
+     croyons point, que les hommes qui doivent servir à
+     l'humanité de flambeau naissent le plus souvent au sein de
+     la classe riche; mais elle seule les apprécie et a le loisir
+     de jouir de leurs travaux_. (Etudes, I, 174.)]
+
+     [Footnote 205-5: To appreciate the demoralizing effects of
+     an income obtained without labor and without trouble on men
+     of small culture, we need only witness the bourgeoisie at
+     great watering places, pilgrimage places, seats of courts
+     and university cities supported largely by students.
+     Similarly at Mecca, Medina, Meschhed, Rome, etc. (_Ritter_,
+     Erdkunde VIII, 295 seq. IX, 32), and even in Palestine,
+     during the crusades, when the miserable Pullanes counted on
+     the tribute of the pilgrims. (_Wilken_, VII, 369, according
+     to _Jacob de Vitriaco_.)]
+
+     [Footnote 205-6: A man with $100,000 a year has a much less
+     incentive to make savings than 100 men with $1,000 each per
+     annum, for the reason that his economic wants are already
+     all richly satisfied, and he can have little hope of
+     improving it by saving. (_von Mangoldt_, V. W. L., 141.)]
+     [Footnote 205-7: _Harrington's_ fundamental thought
+     (1611-1677, Works, 1700) is, that the nature of the
+     constitution of a state depends on the distribution of the
+     ownership of its land. "Balance of property!" Where, for
+     instance, one person owns all the land or the larger portion
+     of it, we have a despotism; where the distribution is more
+     equal, a democracy, etc. All real revolutions are based upon
+     a displacement of the centre of gravity of property, since
+     in the long run, superstructure and foundation can not be
+     out of harmony with each other. For this reason, agrarian
+     laws are the principal means to prevent revolutions.
+     (_Roscher_, Gesch. der English. Volkswirthschaftslehre, 53
+     ff.) _Montesquieu_ also pays special attention to the
+     political consequences of the distribution of wealth. Thus,
+     for instance, in monarchies, the creation of large fortunes
+     should be promoted by the right of primogeniture; in
+     aristocracies, on the other hand, the great wealth of a few
+     nobles is as detrimental as that of extreme poverty. (Esprit
+     des Lois, V, 8, 9.)]
+
+     [Footnote 205-8: The common assertion of the socialists,
+     that the inequality of property is frightfully on the
+     increase, is as far from being proved as is the opposite one
+     of _Hildebrand_, Nat. Oek. der Gegenwart und Zukunft, I, 245
+     ff. According to _Macaulay_, Hist. of England, ch. 3, there
+     were, in England, in 1685, only about three (ducal) families
+     with an annual income of about £20,000 a year. The average
+     income of a lord amounted to £3,000; of a baronet, to £900;
+     of a member of the house of commons, to scarcely £800; and a
+     lawyer with £1,000 per annum was considered a very important
+     personage. At the same time, there were 160,000 families of
+     free peasants, that is more than 1/7 of the whole
+     population, whose average income amounted to from £60 to
+     £70. For the year 1821, _Marshall_, Digest of all Accounts,
+     etc., II, 1833, assumes, that there were 4,000 families with
+     over £5,000 yearly income; 52,000 families with from £1,500
+     to £5,000; 386,000 families with from £200 to £1,000;
+     2,500,000 families with less than £200. Compare, _per
+     contra_, the Edinburg Review, 1835. The income tax
+     statistics of 1847 show that 22 persons had an income of at
+     least £50,000 a year; 376 persons, from £10,000 to £50,000;
+     788, from £5,000 to £10,000; 400, from £4,000 to £5,000;
+     703, from £3,000 to £4,000; 1,483, from £2,000 to £3,000;
+     5,234, from £1,000 to £2,000; 13,287, from £500 to £1,000;
+     91,101, from £150 to £500.
+
+     If we compare these numbers with the corresponding ones of
+     the income tax of 1812, the numbers of those who returned an
+     income of £150 to £500 increased 196 per cent.; of those
+     with an income of from £500 to £1,000, 148 per cent.; of
+     from £1,000 to £2,000, 148 per cent.; of from £2,000 to
+     £5,000, 118 per cent.; of from £5,000 and more, 189 per
+     cent.; while the population in general had increased by
+     about 60 per cent. Compare Athenæum, August, 1850; Edinburgh
+     Rev., April, 1857. Between 1848 and 1857, the development
+     was less favorable, so that the incomes of from £150 to £500
+     subject to taxation, increased only 7 per cent.; those from
+     £500 to £1,000 about 9.56 per cent.; those from £10,000 to
+     £50,000, by 42.4, and those over £50,000, 142.1 per cent.
+     Between 1858 and 1864, the incomes derived from industry and
+     commerce, subject to taxation below £200, had increased
+     about 19.4 per cent.; those over £10,000, 59 per cent.;
+     while the aggregate amount of all taxed incomes in this
+     category increased 19 per cent. (Stat. Journal, 1865, 546.)
+     According to _Baxter_, The National Income of the United
+     Kingdom, 1868, there are now 8,500 persons with a yearly
+     income of £5,000 and more, who draw in the aggregate 15.6
+     per cent. of the national British income, and on the average
+     nearly £15,000 each. There are, further, 48,800 persons with
+     a yearly income of from £1,000 to £5,000; 178,300 with from
+     £300 to £1,000; 1,026,400 with from £100 to £300; and
+     1,497,000 with less than £100 a year from their property. In
+     addition to this, 10,961,000 workmen on wages, with an
+     aggregate income of £324,600,000. Compare §§ 172, 230.
+
+     In France, the number of so-called _électeurs_, who paid
+     direct taxes to at least the amount of 200 francs was, in
+     1831, 166,583, and increased uninterruptedly until 1845,
+     when it was 238,251, while the population had increased only
+     8.5 per cent.
+
+     In Prussia, the revenue from class-taxation up to 1840,
+     increased, unfortunately, in a smaller proportion than the
+     population: hence the lowest classes must have increased
+     relatively more than the others. (_Hoffmann_, Lehre von den
+     Steuern, 176 ff.) Between 1852 and 1873, according to the
+     statistical returns from class-taxation and of the
+     classified income tax, the growth of large incomes in the
+     provinces of old Prussia, seems to have been much more rapid
+     than that of the smaller ones. Thus, for every 100
+     taxpayers, with an income of from 400 to 1,000 thalers,
+     there was an increase to 175.5; of from 1,000 to 1,600
+     thalers, for every previous 100, 210.2; from 1,600 to 3,200
+     thalers, 232.3; of from 3,200 to 6,000, 253.9; of from 6,000
+     to 12,000 thalers, 324.8; of from 12,000 to 24,000, 470.6;
+     of from 24,000 to 52,000 thalers, 576.3; of from 52,000 to
+     100,000 thalers, 568.4; of from 100,000 to 200,000 thalers,
+     533.3; of over 200,000, 2,200. Hence, probably, a greater
+     growth towards the top, than the general increase in the
+     population will account for.
+
+     This concentration of property took place most noticeably in
+     Berlin, where for instance, between 1853 and 1875 the
+     incomes of from 1,000 to 1,600 thalers increased 212.2 per
+     cent.; those from 24,000 to 52,000, 994.1 per cent. There
+     are now in the whole state 2.24 per cent. of the population
+     (including those dependent on them) subject to the income
+     tax; that is, estimated as having a yearly income of 1,000
+     thalers. Of the remaining 97.76 per cent., more than a
+     quarter, and probably more than one-half, are as a class
+     free from taxation, because their income is presumably less
+     than 140 thalers (6,049,699 against 532,367, exempt for
+     other reasons and 4,850,791 belonging to classes subject to
+     taxation: these three numbers probably not including
+     dependents). Among the payers of an income tax, there are
+     79,464 with an average income of 1,237 thalers per annum;
+     41,366 with 2,171 thalers; 12,305 with 4,279 thalers; 4,030
+     with 8,383 thalers; 1,655 with 16,527 thalers; 513 with
+     32,428 thalers; 163 with 65,595 thalers; 39 with 137,692
+     thalers; 21 with 427,142 thalers; and one with 1,700,000
+     thalers per annum. (Preuss. statist. Ztschr., 1875, 116,
+     132, 142, 145, 149.) As the reverse of this picture, we may
+     take the fact that, in 1870, of 1,047,974 cases of
+     guardianship, there were only 208,614 in which there was any
+     property to be looked after. (Justiz-Minist-Blatt, 1872, No.
+     6.)
+
+     The figures from Bremen are very favorable. The incomes
+     subject to taxation amounted, in 1847, to 71.6 thalers per
+     capita; in 1869, to 131.2. The incomes subject to taxation
+     in class No. 1, that is from 250 to 399 thalers, increased
+     78 per cent.; in class No. 2, 400 to 499 thalers, 45 per
+     cent.; in class No. 3, 500 thalers and more, by 57 per cent.
+     The average income of the third class amounted, in 1847-50,
+     to 1,952 thalers; 1866-69, to 2,439 thalers. In 1848, there
+     were, of estates of over 3,000 thalers subject to taxation,
+     only 38 to every 1,000 inhabitants; in 1866, 49. (Jahrb. f.
+     amtl. Statistik Bremens, 1871, Heft 2, p. 185 seq.)]
+
+
+
+
+BOOK IV.
+
+CONSUMPTION OF GOODS.
+
+
+
+
+CHAPTER I.
+
+CONSUMPTION OF GOODS IN GENERAL.
+
+
+SECTION CCVI.
+
+NATURE AND KINDS OF CONSUMPTION.
+
+As it is as little in the power of man to destroy matter as it is to
+create it, we mean by the consumption of goods, in the broad sense of
+the word, the abolition of or the doing away with an utility without any
+regard to the question whether another higher utility takes its place;
+in its narrower sense (consumption proper), a decrease of resources of
+any kind. Consumption is the counterpart of production (§ 30), the top
+of the tree of which production is the roots, and the circulation and
+distribution of goods the trunk. (_A. Walker._) There is, also, what
+Riedel calls immaterial consumption, as when a utility disappears,
+either because the want itself to which it ministers disappears or
+because views have changed as to the means to be employed towards its
+satisfaction.[206-1]
+
+     [Footnote 206-1: Diminutions of value, such, for instance,
+     as an almanac, a newspaper, etc., undergoes simply from the
+     appearance of the next years' etc.; of a shield or a part of
+     an officer's uniform with the initials of the reigning
+     sovereign, only because of the fact of a new succession to
+     the throne. A boot or a glove loses a great part of its
+     value when its mate is destroyed. (_Rau_, Lehrbuch, § 319.)]
+
+
+SECTION CCVII.
+
+NATURE AND KIND OF CONSUMPTION.--THE MOST USUAL KIND.
+
+The commonest kind of consumption is that caused by the use of a thing,
+or by the employing of it for the purpose of acquisition or of
+enjoyment.[207-1] From time immemorial, enjoyment-consumption has been,
+preponderantly, the affair of women, as acquisition-consumption has been
+the business of men.[207-2] Other circumstances being equal, the degree
+or extent of consumption by use (use-consumption) is determined by
+national character. Thus, for instance, the cleanliness and love of
+order characteristic of the Dutch have contributed greatly to the long
+preservation in good condition of their dwellings and household
+articles.[207-3]
+
+In the higher stages of civilization, the use of goods is wont to be
+divided more and more into special branches, according to the different
+peculiarities of the goods themselves, and of the different wants of
+men; a course of things which is, both as cause and effect, intimately
+related to the division of labor. I here speak of a principle of
+_division of use_ (differentiation and specialization). Thus, for
+instance, Lorenz Lange, in 1722, found only one kind of tea in the trade
+between Russia and China; Müller, in 1750, found seven; Pallas, in 1772,
+ten; and Erman, in 1829, about seven hundred.[207-4] As the number of
+gradations of different kinds of the same goods increases with
+civilization, there is, in times of war, a retrogression in this
+respect, to a lower economic stage.[207-5]
+
+Opposed to this, we have the principle of the combination of use. There
+are numberless kinds of goods which may serve a great many just as well
+as they can one exclusive user; and this either successively or
+simultaneously, inasmuch as there is no necessity why, with the
+increasing use of the object, the size of the object itself should
+increase in an equal proportion. (According to Marlo: wealth usable by
+one; wealth usable by many; wealth usable by all.) Thus, for instance, a
+public library may be incomparably more complete, and accessible in a
+still higher degree than ten private libraries which together cost as
+much as it did. And so, a restaurant-keeper may serve a hundred guests
+at the same time, with a much greater table-variety, more to their
+taste, and at a more convenient time, than if each person made the same
+outlay for his private kitchen.[207-6] While formerly, only the great
+could travel rapidly, combination of use has enabled even the lower
+classes to do so in our own days. There is, doubtless, a dark side to
+this picture, too. Combination of use requires frequently great
+sacrifices of personal independence, which should not be underestimated
+when they affect individuality of character, or threaten the intimacy
+and closeness of family life. It is, however, a bad symptom when the
+division of use increases without any corresponding combination of
+use.[207-7] [207-8]
+
+     [Footnote 207-1: We should also mention here destructive
+     consumption, where the defenders of a country destroy
+     buildings, supplies, etc., only that the enemy may not use
+     them.]
+
+     [Footnote 207-2: Compare Die Lebensaufgabe der Hausfrau,
+     Leipzig, 1853; _von Stein_, Die Frau auf dem Gebiete der
+     National Oekonomie, 1875, and the beautiful remarks of
+     _Schäffle_, N. Oek., 166; and _Lotz_, Mikrokosmus, II, 370
+     ff.]
+
+     [Footnote 207-3: In Germany horses are said to last, on an
+     average, 18 years; in England 25; in France and Belgium,
+     only 12 years. (See for the proofs of this _Rau_, Handbuch
+     II, § 168.) The more civilized a people are, the less do
+     they completely destroy values by use; and the more do they
+     use their old linen, etc. as rags; their remains of food as
+     manure, etc. (_Roesler_, Grunds., 552.)]
+
+     [Footnote 207-4: _Ritter_, Erdkunde, III, 209. Thus, the
+     French in the 13th century were acquainted with only three
+     kinds of cabbage; in the 16th, with six, about 1651, with
+     12; they are now acquainted with more than 50; in the 16th
+     century they knew only 4 kinds of sorrel; in 1651, 7; about
+     1574, only 4 kinds of lettuce; to-day they know over 50;
+     under Henry II., they were acquainted with 2 or 3 kinds of
+     melons; in the 17th century, with 7; now they are acquainted
+     with over 40. (_Roquefort_, Histoire de la Vie privée des
+     Fr., I, 179 ff.) Instead of the four kinds of pears
+     mentioned by de Serre (1600), there were, in 1651, about
+     400. (I, 272.) Liebaud, 1570, knew only 19 kinds of grapes;
+     de Serre, 41. (_Roquefort_, III, 29 ff.) According to the
+     "Briefen eines Verstorbenen," IV, 390, the first
+     kitchen-gardener in London had 435 kinds of salad, 240 of
+     potatoes, and 261 of pease.
+
+     And so precisely in ancient times. While the earlier Greeks
+     speak of but one οἶνος, even at the most sumptuous feasts
+     (compare, however, _Homer_, Il. XI, 641;) and while even in
+     the time of Demosthenes only very few kinds of wine were
+     known (_Becker_, Charicles, I, 455), _Pliny_, H. N. XIV, 13,
+     was acquainted with about 80. In this respect the moderns
+     have never returned to ancient simplicity; at least the
+     fabliau, La Bataille des Vins, introduces us to 47 kinds of
+     French wine in the 13th century. (Compare also _Wackernagel_
+     in _Haupt's_ Zeitschrift für deutsches Alterth., VI. 261
+     ff., and _Henderson_, History of ancient and modern Wines,
+     1824.) The Lacedemonians, with their intentional persistence
+     in a lower stage of civilization, used the same garment in
+     winter and summer (_Xenoph._, De Rep. Laced., II, 4); while
+     the contemporaries of Athenæos (III, 78 ff.) were acquainted
+     with 72 kinds of bread. With what a delicate sense for good
+     living the Romans in Caesar's time had discovered the best
+     supply places for chickens, peacocks, cranes, thunny-fish,
+     muraena, oysters and other shell-fish, chestnuts, dates,
+     etc., may be seen in _Gellius_, N. A., VII, 16. Compare
+     _Athen._, XII, 540.
+
+     In the middle age of Italy, the houses had almost always
+     three rooms: _domus_ (kitchen), _thalamus_, _solarium_.
+     (_Cibrario_, E. P. del medio Evo, III, 45.) The manors or
+     masters' houses built on the estates of Charlemagne had 3
+     and 2 rooms, sometimes only 1, and sometimes 2 rooms and 2
+     bedrooms. According to an old document of 895, a shed was
+     worth 5 sols, a well-built manor 12. (_Anthon_, Geschichte
+     der deutschen Landwirth., I, 249 ff., 311.) The Lex
+     Alamanorum, tit. 92, provided that a child, in order to be
+     considered capable of living, should have seen the roof and
+     four walls of the house! See an able essay, capable of being
+     still further developed, by _E. Herrmann,_ in which he
+     endeavors to explain the _division of use_ and of labor on
+     Darwin's hypothesis of the origin of species in the D.
+     Vierteljahrsschrift, Januar., 1867.]
+
+     [Footnote 207-5: Thus, 1785-1795, the best Silesian wool
+     cost 60, the worst 26, thalers per cwt.; in 1805, on account
+     of the great demand for cloth to make military uniforms, the
+     former cost 78, the latter 50 thalers. (_Hoffmann_,
+     Nachlass, 114.)]
+
+     [Footnote 207-6: The one large kitchen naturally requires
+     much less place, masonry, fuel, fewer utensils, etc., than
+     100 small ones. Think of the relatively large savings
+     effected by the use of one oven kept always heated! Even the
+     Lacedemonians called their meal associations φειδίτια, i. e.,
+     save-meals. Dainties proper can be consumed only in very
+     small portions, but cannot well be prepared in such
+     quantities. A guest at a first class Parisian restaurant
+     has, at a moderate price, his choice of 12 _potâges_, _24
+     hors d'œuvres_, _15-20 entrées de bœuf_, _20 entrées
+     de mouton_, _30 entrées de volaille et gibier_, _15-20
+     entrées de veau_, _12 de pâtisserie_, _24 de poisson_, _15
+     de rôts_, _50 entremets_, _50 desserts_; and, in addition,
+     perhaps 60 kinds of French wine alone. What more can a
+     princely table offer in this respect? Compare
+     _Brillat-Savarin_, Physiologie du Goût, Médit., 28.]
+
+     [Footnote 207-7: In Diocletian's time, there was purple silk
+     worth from 2½ thalers to 250 thalers per pound.
+     (_Marquardt_, Röm. Privatalterthümer, II, 122.)]
+
+     [Footnote 207-8: Concerning the application of the above
+     principle in industry and in the care of the poor, see
+     _infra_. The advantages afforded by consumption in common,
+     or the combination of use, have been enthusiastically dwelt
+     upon by _Fourier_, and the organization of his phalansteries
+     is based essentially on that principle. In these colossal
+     palaces, which, spite of all their magnificence, cost less
+     than the hundred huts of which they take the place, a ball
+     is given every evening, because it is cheaper to light one
+     large hall, in which all may congregate. The division of
+     use, or of consumption also, is here developed in a high
+     degree. When 12 persons eat at the same table they have 12
+     different kinds of cheese, 12 different kinds of soup, etc.
+     Even little children are allowed to yield to the full to
+     their gluttonous propensities, since on them depends the
+     productive activity of the so-called _séries passionnées_.
+     Compare Nouveau Monde, 272. The Saint-Simonists also
+     characterize the _association universelle_ as the highest
+     goal of human development. (_Bazard_, Exposition, 144 ff.)
+     On the danger of this development to family life, see
+     _Sismondi_, Etudes I, 43.]
+
+
+SECTION CCVIII.
+
+NATURE AND KINDS OF CONSUMPTION.--NOTIONAL CONSUMPTION.
+
+By the notional consumption (_Meinungsconsumtion_), as Storch calls it,
+operated by a change of fashion, many goods lose their value, without as
+much as suffering the least change of form or leaving the merchant's
+shop. This kind of consumption, too, is exceedingly different in
+different nations. Thus, in Germany, for instance, fashions are much
+more persistent than in France.[208-1] In the most flourishing times of
+Holland, only noblemen and officers changed with the fashions, while the
+merchants and other people wore their clothes until they went to
+pieces.[208-2] In the East, fashions in clothing are very
+constant;[208-3] but the expensive custom there prevails, for a son,
+instead of moving into the house occupied by his father, to let it go to
+ruin, and to build a new one as a matter of preference. The same is true
+even in the case of royal castles. Hence, in Persia, most of the cities
+are half full of ruins, and are in time moved from one place to
+another.[208-4]
+
+The national income of a country is, on the whole, much less affected by
+a change of fashion than the separate incomes of its people. The same
+whim which lowers the value of one commodity increases the value of
+another; and what has ceased to be in fashion among the rich, becomes
+accessible, properly speaking, to the poorer classes of the community
+for the first time.[208-5] The want of varying his enjoyments is so
+peculiar to man, and so intimately connected with his capacity for
+progress, that it cannot in itself be blamed. But if this want be
+immoderately yielded to, if the well-to-do should despise every article
+which has not the charm of complete novelty, the advantages of the whole
+pattern-system, by means of which the preparation of a large number of
+articles from the same model at a relatively small cost, would be lost.
+Besides, fashion, which makes production in large quantities, for the
+satisfaction of wants that are variable and free, possible, frequently
+means even a large saving in the cost of production.[208-6]
+
+     [Footnote 208-1: The consequences of this are very important
+     to the character of French and German industry.
+     (_Junghanns_, Fortschritte des Zollvereins, I, 28, 51, 58.)
+     Rapidly as the Parisian fashions in dress make their way
+     into the provinces, their fashions in the matter of the
+     table are very slow to do so. (_Rocquefort_, Hist. de la Vie
+     privée des Fr., I, 88 seq.)]
+
+     [Footnote 208-2: _Sir W. Temple._ Observations on the U.
+     Provinces, ch. 6.]
+
+     [Footnote 208-3: As most persons adorn themselves for the
+     sake of the opposite sex, this invariability is caused by
+     the oriental separation of two sexes. Our manufacturers
+     would largely increase their market, if they could succeed
+     in civilizing the East in this respect. In Persia, shawls
+     are frequently inherited through many generations, and even
+     persons of distinction buy clothes which had been worn
+     before. (_Polak_, Persien, I, 153.) In China, the Minister
+     of Ceremonies rigidly provided what clothes should be worn
+     by all classes and under severe penalties. (_Davis_, The
+     Chinese, I, 352 seq.)]
+
+     [Footnote 208-4: _Jaubert_, Voyage en Perse, 1821. While
+     cities like Seleucia, Ctesiphon, Almadin, Kufa, and even
+     Bagdad, were built from the ruins of Babylon.]
+
+     [Footnote 208-5: In Moscow, merchants close their accounts
+     at Easter. Then begins a new cycle of fashions, after which
+     all that remains is sold at mock-prices. (_Kohl_, Reise,
+     98.) In Paris, there are houses which buy up everything as
+     it begins to go out of fashion and then send it into the
+     provinces and to foreign parts. Thus, there are immense
+     amounts of old clothing shipped from France and England to
+     Ireland. Hence, the latter country can have no national
+     costume appropriate to the different classes; and the
+     traveler sees with regret, crowds of Irish going to work in
+     ragged frock-coats, short trowsers and old silk hats. In
+     Prussia, many of the peasantry, in the time of Frederick the
+     Great, wore the discarded uniforms of the soldiery.]
+
+     [Footnote 208-6: _Schäffle_, N. Oek. _Hermann_, Staatsw.
+     Untersuchungen, II, Aufl., 100.]
+
+
+SECTION CCIX.
+
+CONSUMPTION WHICH IS THE WORK OF NATURE.
+
+The least enjoyable of all consumption (_loss-consumption_) is that
+which is the work of nature; and nature is certainly most consuming in
+the tropics. During the rainy season, in the region of the upper Ganges,
+mushrooms shoot up in every corner of the houses; books on shelves swell
+to such an extent that three occupy the place previously occupied by
+four; those left on the table get covered over with a coat of moss
+one-eighth of an inch in thickness. The saltpetre that gathers on the
+walls has to be removed every week in baskets, to keep it from eating
+into the bricks. Numberless moths devour the clothing. Schomburgk found
+that, in Guiana, iron instruments which lay on the ground during the
+rainy season became entirely useless within a few days, that silver
+coins oxydized, etc.; evidently a great obstacle in the way of the
+employment of machinery. In summer, the soil of this same region, so
+rich in roots, is so parched by the heat, that subterranean fires
+sometimes cause the most frightful destruction.
+
+In Spanish America, there are so many termites and other destructive
+insects that paper more than sixty years old is very seldom to be found
+there.[209-1]
+
+The warmer portions of the temperate zone are naturally most favorable
+to the preservation of stone monuments. Thus, for instance, in
+Persepolis, where there has been no intentional destruction, the stones
+lie so accurately superimposed the one on the other that the lines of
+junction can frequently be not even seen. The amphitheatre of Pola has
+lost in two thousand years only two lines from the angles of the
+stones.[209-2] The Elgin marble statues would certainly have lasted
+longer in Greece than they will in England. On the other hand, warm and
+dry climates have a very peculiar and exceedingly frightful species of
+nature-consumption in the locust plagues. The principal countries
+affected by such consumption are Asiatic and African Arabistan, the land
+of the Jordan and Euphrates, Asia Minor, parts of Northern India. On
+Sinai, locust plagues occur, on an average, every four or five years;
+but from 1811 to 1816, for instance, they destroyed everything each
+year. Their course is in its effects like an advancing conflagration. It
+turns the green country, frequently in a single day, into a brown
+desert; and famine and pestilence follow in its path.[209-3]
+
+The colder regions of the temperate zone are exposed to danger and
+damage from land-slides in their long series of mountains, and from
+avalanches, from quicksands in many of their plains, from floods and the
+total destruction of land along their coasts;[209-4] but, on the other
+hand, they are, relatively speaking, freest from hurricanes, earthquakes
+and volcanoes, the ravages of which no human art or foresight is
+competent to cope with. From the point of view of civilization and of
+politics there is here a great advantage. See § 36. The former maritime
+power of Venice and of Holland is closely allied to the dangers with
+which the sea continually threatened them, and which was a continual
+spur to both. But, on the other hand, the danger from earthquakes which
+always impends over South America and Farther India, must produce
+consequences similar to those of anarchy or of despotism, because of the
+uncertainty with which they surround all relations. See § 39.[209-5]
+
+     [Footnote 209-1: _Ritter_, Erdkunde VI, 180 ff; _Schomburgk_
+     in the Ausland, 1843, Nr. 274; _Humboldt_, Relation hist.,
+     I, 306; Neuspanein, IV, 379; _Pöpping_, Reise, II, 197 ff.,
+     237 ff. The ant, even in Marcgrav's time, was called the
+     _rey do Brazil_.]
+
+     [Footnote 209-2: _Ritter_, Erdkunde VIII, 895; _Burger_,
+     Reise in Oberitalien, I, 7. The monuments of Nubia have
+     suffered much less from the hand of time than those of Upper
+     Egypt, because the air of the plateau is drier. The effects
+     of climate have been most severely felt in Lower Egypt,
+     where the air is most moist. (_Ritter_, I, 336, 701.) In the
+     case of wood, on the other hand, dryness may be a great
+     agent of destruction. Thus, in Thibet, wooden pillars,
+     balconies, etc., have to be protected with woolen coverings
+     to keep them from splitting. (_Turner_, Gesandtsreise,
+     German translation, 393 ff.)]
+
+     [Footnote 209-3: Compare _Ritter_, Erdkunde, VIII, 789-815,
+     especially the beautiful collection of passages from the
+     Bible bearing on the locust plague, 812 ff. _Pliny_, H. N.,
+     XI, 85. _Volney_, Voyages en _Syrie_, I, 305. For account of
+     an invasion of locusts, which, in 1835, covered half a
+     square mile, four inches in thickness, see _v. Wrede_, R. in
+     Hadhrammaut, 202. It is estimated that, in England, the
+     destruction caused by rats, mice, insects, etc., amounts to
+     ten shillings an acre per year; i. e., to £10,000,000 per
+     annum. (_Dingler_, Polyt. Journal, XXX, 237.)]
+
+     [Footnote 209-4: Origin of the gulf of Dollart in Friesland,
+     2½ square miles in area between 1177 and 1287; and of
+     Biesboch of 2 square miles in 1421. On the repeated
+     destruction of lands in Schleswig by inundations, see
+     _Thaarup_, Dänische Statistik, I, 180 seq. It is a
+     remarkable fact that in relation to the Mediterranean,
+     _Strabo_, VII, 293, considers all such accounts fables.]
+
+     [Footnote 209-5: As to how the grandeur and
+     irresistibleness, etc. of this nature-consumption in the
+     tropics leads men to superstition and the indulgence of wild
+     fancies, see _Buckle_, History of Civilization in England,
+     1859, I, 102 ff. Since the conquest of Chili, sixteen
+     earthquakes, which have destroyed large cities totally or in
+     part, have been recorded.]
+
+
+SECTION CCX.
+
+NECESSITY OF CONSIDERING WHAT IS REALLY CONSUMED.
+
+Whenever there is question of consumption, it is necessary to examine
+with rigid scrutiny, what it is that has been really consumed; that is,
+that has lost in utility. The person, for instance, who pays twenty
+dollars for a coat, has consumed that amount of capital only when the
+coat has been worn out.[210-1] What is called the consumption of one's
+income in advance is nothing but the consumption of a portion of capital
+which the consuming party intends to make good from his future
+income.[210-2] Fixed capital, too, can certainly be directly consumed;
+for instance, when the owner of a house treats the entire rent he
+receives from it as net income, makes no repairs, and no savings to put
+up a new building at some future time. As a rule, however, the owner of
+fixed capital must, in order to consume it, first exchange it against
+circulating capital. Thus the prodigality and dissipation, especially of
+courts of absolute princes, have found numerous defenders who have
+claimed that they are uninjurious, provided only the money spent in
+extravagance remained in the country.[210-3] The prodigality itself,
+that is, the unnecessary destruction of wealth is not, on that account,
+any the less disastrous.[210-4] If, for instance, there are fire-works
+to the amount of 10,000 dollars, manufactured exclusively by the workmen
+of the country, ordered for a gala day; the night before they are used
+for purposes of display, the national wealth embraces two separate
+amounts, aggregating 20,000 dollars; that is, 10,000 dollars in silver
+and 10,000 in rockets, etc. The day after, the 10,000 in silver are
+indeed still in existence, but of the 10,000 in rockets, etc., there is
+nothing left. If the order had been made from a foreign country the
+reverse would have been the case, the silver stores of the people would
+have been diminished, but their supply of powder would remain intact.
+
+In a similar way, there is occasion given for the greatest
+misunderstanding when people so frequently speak of producers and
+consumers as if they were two different classes of people. Every man is
+a consumer of many kinds of goods; but, at the same time, he is a
+producer, unless he be a child, an invalid, a robber, a pick-pocket,
+etc.[210-5] At the same time, Bastiat is right in saying that in case of
+doubt when the interests of production and of consumption come in
+conflict, the state, as the representative of the aggregate interest,
+should range itself on the side of the latter. If we carry things on
+both sides to their extremest consequences, the self-seeking desire of
+consumers would lead to the utmost cheapness, that is, to universal
+superfluity, and the self-seeking wish of producers to the utmost
+dearness, that is, to universal want.[210-6]
+
+     [Footnote 210-1: Compare _Mirabeau_, Philosophie rurale, ch.
+     1; _Prittwitz_; Kunst reich zu werden, 474.]
+
+     [Footnote 210-2: A very important principle for the
+     understanding of the real effects of the spending of a state
+     loan!]
+
+     [Footnote 210-3: In this way _Voltaire_, Siècle de Louis
+     XIV., ch. 30, excuses for instance the extravagant (?)
+     buildings at Versailles; and in a very similar way Catharine
+     II. expressed herself in speaking to the Prince de Ligne:
+     Mémoires et Mélanges par le Prince de Ligne, 1827, II, 358.
+     _v. Schröder_ even thinks that the Prince might consume as
+     much and even more than "the entire capital" of the country
+     amounted to; only, he would have him "let it get quickly
+     among the people again." He is also in favor of the utmost
+     splendor in dress, provided the public see to it that
+     nothing was worn in the country which was not made in the
+     country. (Fürstl. Schatz- u. Rentkammer, 47, 172.) Similarly
+     even _Botero_, Della Ragion di Stato VII, 85; VIII, 191; and
+     recently _v. Struensee_, Abhandlungen I, 190. The principle
+     of Polycrates in _Herodotus_ is nearly to the same effect.
+     Compare, per contra, _Ferguson_, Hist. of Civil Society, V,
+     5.]
+
+     [Footnote 210-4: With the exception of the profit made by
+     the manufacturers.]
+
+     [Footnote 210-5: Strikingly ignored by _Sismondi_, N. P.,
+     IV, ch. II.]
+
+     [Footnote 210-6: _Bastiat_, Sophismes économiques, 1847, ch.
+     IV. Everything which, in the long run, either promotes or
+     injures production, "steps over the producer and turns in
+     the end to the gain or loss of the consumer." Only for this
+     principle, inequality and dissensions among men would keep
+     growing perpetually. All that the systems of Saint Simonism
+     and communism contain that is relatively true is thus
+     realized.]
+
+
+SECTION CCXI.
+
+NATURE AND KINDS OF CONSUMPTION.--PRODUCTIVE CONSUMPTION.
+
+There is no production possible without consumption. The embodiment of a
+special utility into any substance is a limitation of its general
+utility. Thus, for instance, when corn is baked into bread, it can no
+longer be used for the manufacture of brandy or of starch.[211-1]
+
+When, therefore, consumption is a condition (outlay) to production it is
+called productive (reproductive).[211-2] Here, indeed, the form of the
+consumed goods is destroyed, but the value of the goods lives on in the
+new product.
+
+There are different degrees of productiveness in consumption also. Thus,
+to a scholar, his outlay for books in his own branch is immediately
+productive; but nevertheless, books in departments of literature very
+remote from his own, pleasure trips, etc. may serve as nutrition and as
+a stimulus to his mind. According to § 52, we are compelled to consider
+all consumption productive which constitutes a necessary means towards
+the satisfaction of a real economic want. We may, indeed, distinguish
+between productive consumption in aid of material goods, of personal
+goods and useful relations; but in estimating the productiveness of
+these different sorts of consumption we are concerned not so much with
+the nature of the consumption as the results in relation to the nation's
+wants. The powder that explodes when a powder magazine burns is consumed
+unproductively; but the powder shot away in war may be productively
+consumed just as that used to explode a mine may be unproductively
+consumed; for instance, when the war is a just and victorious one and
+the mining enterprise has failed.[211-3]
+
+The maintenance or support of those workmen whom they themselves
+acknowledge to be productive is presumably accounted productive
+consumption by all political economists. Why not, therefore, the cost of
+supporting and educating our children, who, it is to be hoped, will grow
+up later to be productive workmen. Man's labor-power is, doubtless, one
+of the greatest of all economic goods. But without the means of
+subsistence, it would die out in a few days. Hence we may, and even
+without an atomistic enumeration of the individual services and products
+of labor, consider the continued duration of that labor-power itself as
+the continued duration of the value of the consumed means of
+subsistence.[211-4]
+
+     [Footnote 211-1: Even when air-dried bricks are made from
+     water and clay which cost nothing; when purely occupatory
+     work is done, and purely intellectual labor performed, some
+     consumption of the means of subsistence by the workmen is
+     always necessary.]
+
+     [Footnote 211-2: Χρηματιστικαὶ in contradistinction to
+     ἀναλωτικαὶ, according to _Plato_, De Rep., VIII, 559.
+     Temporary consumption. (_Umpfenbach._)]
+
+     [Footnote 211-3: _Storch_, Handbuch, II, 450.]
+
+     [Footnote 211-4: Against the difference formerly usually
+     assumed between productive and unproductive consumption, see
+     _Jacob_, Grundsätze der Nat. Oek., II, 530. It is because of
+     a too narrow view that _Hermann_ (II, Aufl., 311), instead
+     of reproductive consumption, speaks of technic consumption.]
+
+
+SECTION CCXII.
+
+UNPRODUCTIVE CONSUMPTION.
+
+Moreover, unproductive consumption embraces not only every economic
+loss, every outlay for injurious purposes,[212-1] but also every
+superfluous outlay for useful purposes.[212-2] Yet, not to err in our
+classification here, it is necessary to possess the impartiality and
+many-sidedness of the historian, which enable one to put himself in the
+place of others and feel after them as they felt. The man, for instance,
+who, in cities like Regensburg and especially Rome, sees numberless
+churches often, so to speak, elbowing one another, cannot fail to
+recognize the difference between the buildings of to-day for business,
+political, educational and recreative purposes, and the medieval, for
+the satisfaction of spiritual wants. The latter also may, in their own
+sphere, and in their own time, have, as a rule, operated productively,
+as the former operate, often enough, by way of exception unproductively;
+as in the case of railway and canal speculations which have ended in
+failure. It would be difficult to decide between the relative value of
+the two kinds of wants, because the parties to the controversy do not,
+for the most part, share the want (_Bedürfniss_) of their respective
+opponents, frequently do not even understand it, and therefore despise
+it. Thus, there are semi-barbarous nations, who can entertain that
+respect for the laws which is necessary even from an economic point of
+view only to the extent that they see the person whose duty it is to
+cause them to be observed seated on a throne and surrounded by
+impressive splendor. Hence, such splendor here could not be considered
+merely unproductive consumption.[212-3]
+
+We must, moreover, remark in this place as we did above, § 54, that it
+is easiest to pass the boundary line between productive and unproductive
+consumption in personal services. In 1830, the expenses of the state, in
+Spain, amounted to 897,000,000 of reals per annum; the outlay of
+municipal corporations, to 410,000,000, and that for external purposes
+of religion, 1,680,000,000. (_Borrego._) This is certainly no salutary
+proportion; but it is scarcely evidence of a worse economic condition
+than the fact that in Prussia it would require a basin one Prussian mile
+in length, thirty-three and eight-tenths feet broad, and ten feet deep
+to hold all the brandy drunk in the country (_Dieterici_); or this
+other, that the British people spend yearly £68,000,000 sterling for
+taxes and £100,000,000 yearly for spirituous liquors.[212-4] Berkeley
+rightly says that the course practiced in Ireland, with its famishing
+proletarian population, of exporting the means of subsistence and
+exchanging them against delicate wines, etc., is as if a mother should
+sell her children's bread to buy dainties and finery for herself with
+the proceeds.[212-5] [212-6]
+
+     [Footnote 212-1: Thus, for instance, food which spoils
+     unused, and food which is stolen and which puts a thief in a
+     condition to preserve his strength to steal still more.]
+
+     [Footnote 212-2: So far _Senior_, Outlines, 66, is right:
+     the richer a nation or a man becomes, the greater does the
+     national or personal productive consumption become.]
+
+     [Footnote 212-3: Such gigantic constructions as the palaces,
+     pyramids, etc. of Egypt, Mexico or Peru are a certain sign
+     of the oppression of the people by rulers, priests or
+     nobles. One of the Egyptian pyramids is said to have
+     occupied 360,000 men for twenty years. (_Diodor._, I, 63;
+     _Herodot._, II, 175; _Prescott_, History of Mexico, I, 153,
+     History of Peru, I, 18.)]
+
+     [Footnote 212-4: Edinburg Rev., Apr., 1873, 399.]
+
+     [Footnote 212-5: _Berkeley_, Querist, 168, 175, says that
+     the national wants should be the guiding rule of commerce,
+     and that besides, the most pressing wants of the majority
+     should be first considered.]
+
+     [Footnote 212-6: _Ricardo_, Principles, p. 475, was of
+     opinion that an outlay of the national or of private income
+     in the payment of personal services increased the demand for
+     labor and the wages of labor in a higher degree than an
+     equal outlay for material things. The error at the
+     foundation of this is well refuted by _Senior_, Outlines,
+     160 ff.
+
+     The first to zealously advocate and treat the theory of
+     productive consumption was _J. B. Say_, Traité, III, ch. 2,
+     seq.; Cours pratique, II, 265. But the germs of the doctrine
+     are to be found in _Dutot_, Réflexions politiques sur le
+     Commerce et les Finances, 1738, 974, _éd_. Daire. His
+     distinctions are in part drawn with great accuracy. Thus he
+     says that, among others, a manufacturer of cloth,
+     productively consumes the results of his workmen, but that
+     the workmen themselves who exchange these results for bread,
+     consume the latter unproductively. _Say_ is guilty of the
+     inconsistency of claiming that only that consumption is
+     productive which contributes directly to the creation of
+     material exchangeable goods, spite of the fact that he gave
+     the productiveness of labor a much wider scope. _Rau_,
+     Lehrbuch, I, § 102 ff., 323 seq., is more consistent in so
+     far as he applies the same limitation in both cases.
+     (Compare also § 333, 336.) _Hermann_, Staatsw.
+     Untersuchungen, 170 seq., 231 ff., would prefer to see the
+     idea of productive consumption banished from the science,
+     for the reason that if the value of the thing alleged to be
+     consumed continues, there can be no such thing as its
+     consumption. But, I would rejoin: in a good national
+     economy, there would be, according to this, scarcely any
+     consumption whatever, because the aggregate value of that
+     which I have called above productive consumption is
+     unquestionably preserved, and continues in the aggregate
+     value of the national products.
+
+     Productive consumption is ultimately a stage of production,
+     just as production itself is ultimately a means to an end,
+     consumption, and therefore a preparation for the latter.
+     Both ideas may be rigorously kept apart from each other,
+     just as the expenses and receipts of a private business man,
+     who makes a great portion of his outlay simply with the
+     intention of reaping receipts therefrom, may be. Every one
+     desires his production to be as large as possible, and his
+     productive consumption, so far it does not fail of its
+     object, as small as possible. _Riedel_ rightly says that the
+     theory of reproductive consumption serves Political Economy
+     as the bridge which closes the circle formed by the action
+     of production, distribution and consumption. (Nat. Oek. III,
+     49.) One of the chief fore-runners of the view we advocate
+     was _McCulloch_, Principles, IV, 3 ff. _Gr. Soden_, Nat.
+     Oek., distinguishes economic consumption, un-economic and
+     anti-economic consumption. (Nat. Oek., I, 147.)]
+
+
+SECTION CCXIII.
+
+EQUILIBRIUM BETWEEN PRODUCTION AND CONSUMPTION.
+
+In all cases economic production is a means to some kind of consumption
+as its end.[213-1] The sharpest spur to productive activity is the
+feeling of want.[213-2] "Want teaches art, want teaches prayer, blessed
+want!" Well too has it been said: "Necessity is the mother of
+invention!" Leaving mere animals out of consideration,[213-3] those men
+who experience very few wants, with the exception of some rare and
+highly intellectual natures, prefer rest to labor. Therefore, when
+European merchants desire to engage in trade with a savage nation they
+have uniformly to begin by sending them their nails, axes,
+looking-glasses, brandy, etc., as gifts. Not until the savage has
+experienced a new enjoyment does the want of continuing it make itself
+felt; or is he prepared to produce for purposes of commerce.[213-4] In a
+state of normal development, the complete and continuing satisfaction of
+the coarser wants should constitute the foundation for the
+higher.[213-5]
+
+     [Footnote 213-1: We should not, indeed, say, on this
+     account, with _Adam Smith_, IV, ch. 8, that "consumption is
+     the sole end and purpose of all production," for labor and
+     saving, besides their economic object have a higher one,
+     imperishable and personal. Compare _Knies_, Polit. Oek. 129,
+     and _supra_, § 30.]
+
+     [Footnote 213-2: According to _Sir F. M. Eden_, State of the
+     Poor, I, 254, it is one of the most unambiguous symptoms of
+     advanced civilization when families eat regularly at the
+     same table; so also sleeping in real beds. "Bed and board!"
+     It is said that the regularity of meal times was introduced
+     among the Greeks by Palamedes. _Athen._ I, 11, after
+     _Æschylus_.]
+
+     [Footnote 213-3: Hibernating animals have supplies and
+     dwellings, that is something analogous to capital.]
+
+     [Footnote 213-4: This advance is generally observed to be
+     introduced by the _jus fortioris_. _Steuart_, Principles I,
+     ch. 7. (Compare §§ 45-6-8.) In this way, the earliest
+     oriental despotisms have unwittingly been of great service
+     to mankind. What the sultan here accomplished with his few
+     favorites was done in the lower stages of civilization of
+     the west by the aristocracy of great vassals, in a manner
+     more worthy of human beings, and in a much more stable form.
+     (_J. S. Mill_, Principles I, 14 ff.)]
+
+     [Footnote 213-5: _Banfield_, Organization of Industry, 1848,
+     11.]
+
+
+SECTION CCXIV.
+
+CAUSES OF AN INCREASE OF PRODUCTION.
+
+Only when wants increase does production increase also.[214-1] The old
+maxim: _Si quem volueris esse divitem, non est quod augeas divitias, sed
+minuas cupiditates (Seneca)_, would, if consistently carried out, have
+thwarted the advance of civilization and frustrated the improvement of
+man's condition. On the other hand, most political economists, without
+more ado, assume that individuals, and still more nations, are wont to
+extend the aggregate of their enjoyments just as far as there is a
+possibility of satisfying their wants. But they forget here how great a
+part is played in the world, as men are constituted, by the principle of
+inertia.[214-2] At the first blush, what seems more natural than that
+the less labor a people need employ to obtain the most indispensable
+means of subsistence, the more time and taste would remain to them to
+satisfy their more refined wants. According to this, we should expect to
+discover a more refined civilization, especially, in intellectual
+matters, in the earliest periods, when population is small, when land
+exists in excess and is not yet exhausted. But, in reality, precisely
+the reverse is the case. In the earliest stages of civilization
+accessible to our observation, we find materialism prevailing in its
+coarsest form, and life absorbed entirely by the lowest physical wants.
+(Tropical lands.) Where bread grows on the trees, and one needs only to
+reach out his hand and pluck it; where all one wants to cover his
+nakedness is a few palm leaves, ordinary souls find no incentive to an
+ant-like activity, or to a union among themselves for economic
+purposes.[214-3] When a Mexican countryman earns enough to keep himself
+and his family from absolute want by two days' labor in a week, he idles
+away the other five. It never occurs to him that he might devote his
+leisure time to putting his hut or his household furniture, etc., in
+better shape. The necessity of foresight even is almost unknown; and in
+the most luxuriantly fertile country in the world, a bad harvest
+immediately leads to the most frightful famine. Humboldt was assured
+that there was no hope of making the people more industrious except by
+the destruction of the banana plantations.[214-4] But, indeed, there
+would be little gained by such compulsory industry. To work for any
+other end than satiation, it is necessary that man should feel wants
+beyond the want created by mere hunger.[214-5] There are so many
+conditions precedent (and mutually limiting one another) to a general
+advance in civilization, that such an advance can, as a rule, take place
+only very gradually. Let us suppose, for instance, a single Indian in
+Mexico, perfectly willing to work six days in the week, and in this way
+to cultivate a piece of land three times as great as his fellow Indians.
+Where would he get the land? He would, for a time find no purchasers for
+his surplus, and therefore not be in a condition to pay the landlord as
+much as the latter hitherto received from the pasturage alone. Not until
+cities are built and offer the rural population the products of industry
+in exchange for theirs, can they be incited to, or become capable of
+effecting a better cultivation of the land. This incentive and this
+capacity, are inseparably connected with each other. Where the
+agricultural population produce no real surplus, but after the fashion
+of medieval times, produce everything they want themselves, and consume
+all their own products with the exception of the part paid to the state
+as a tax, there can scarcely be an industrial class, a commercial class,
+or a class devoted to science, art, etc. And, conversely, it is only the
+higher civilization which finds expression in the development of these
+classes, that, by a more skillful guidance of the national labor, can
+call forth its productiveness to an extent sufficient to yield a
+considerable surplus of agricultural commodities over and above the most
+immediate wants of the cultivators of the soil themselves. Hence, we
+find that precisely in those countries which are most advanced in the
+economic sense, there is relatively the smallest number of men engaged
+in agriculture, and relatively the largest number in production of a
+finer kind.[214-6] It is here as in private housekeeping: the poorer a
+man is, the greater is the portion of his income which he is wont to lay
+out for indispensable necessities.[214-7] [214-8]
+
+     [Footnote 214-1: There is obviously here supposed besides
+     the want thus increased, a capacity for development. Thus,
+     for instance, the inhabitants of New Zealand brought with
+     them, in what concerns clothing, dwellings, etc., the
+     customs of a tropical into a colder country, and did not
+     understand how to oppose the rigor of the new climate,
+     except by building immoderately large fires, until they
+     became acquainted with European teachers. (Edinb. Review,
+     April, 1850, 466.)]
+
+     [Footnote 214-2: Compare _R. S. Zachariä_, Vierzig Bücher
+     vom Staate, VII, 37. Men in the lower stages of civilization
+     cherish a greater contempt for those more advanced than they
+     are themselves visited with by the latter. Thus it was
+     customary for the Siberian hunting races to utter a
+     malediction: May your enemy live like a Tartar, and have the
+     folly to engage in the breeding of cattle. (_Abulghazi
+     Bahadur_, Histoire généalogique des Tartares.) Nomadic races
+     look upon the inhabitants of cities as for the most part
+     prisoners.]
+
+     [Footnote 214-3: The "happy, contented negroes," as Lord
+     John Russel called them, work in Jamaica, on an average,
+     only one hour a day since their emancipation. (Colonial
+     Magazine, Nov. 1849, 458.) Egypt, India, etc., from time
+     immemorial, the classic lands of monkish laziness. Compare
+     _Hume_, Discourses, No. 1, on Commerce. On the other hand,
+     the person who has six months before him for which he must
+     labor and lay up a store, if he would not famish or freeze,
+     must necessarily be active and frugal; and there are other
+     virtues which go along with these. (_List_, System der
+     polit. Oek., I, 304.) According to _Humboldt_, the change of
+     seasons compels man to get accustomed to different kinds of
+     food, and thus fits him to migrate. The inhabitants of
+     tropical countries are, on the other hand, like
+     caterpillars, which cannot emigrate nor be made to emigrate,
+     on account of the uniform nature of their food.]
+
+     [Footnote 214-4: _Humboldt_, N. Espagne, IV, ch. 9, II, ch.
+     5. Similarly among the coarser Malayan tribes, the facility
+     with which fish is caught and the cheapness of sago are the
+     principal causes of their inertia and of their unprogressive
+     uncivilization. (_Crawfurd._)]
+
+     [Footnote 214-5: _Le travail de la faim est toujours borné
+     comme elle. (Raynal.)_]
+
+     [Footnote 214-6: Compare _Adam Smith_, I, ch. 11, 2;
+     _supra_, § 54. In Russia, nearly 80 per cent. of the
+     population live immediately from agriculture; in Great
+     Britain, in 1835, only 35; in 1821, only 33; in 1831, only
+     31½; in 1841, only 26 per cent. (_Porter._) According to
+     _Marshall_, there were, in 1831, in British Europe,
+     1,116,000 persons who lived from their rents, etc. In
+     Ireland, there were, in 1831, over 65 per cent. of the
+     population engaged in agriculture (_Porter_); in 1841, even
+     66 per cent.]
+
+     [Footnote 214-7: In Paris, in 1834, the average income per
+     capita was estimated to be 1,029.9 francs, of which 46
+     francs were paid out for service; 55.7 for education; 11.5
+     for physicians' services, etc.; 7 on theatrical shows; 36
+     for washing; 13.6 for public purposes. (_Dingler_, Polyt.
+     Journal, LIII, 464.) According to _Ducpétiaux_, Budgets
+     économiques des Classes ouvrières en Belgique, 1855, and
+     _Engel_, Sächs. Statist. Ztschr., 1857, 170, the
+     proportional percentage of family expenses for the following
+     articles of consumption is:
+
+     =======================+=========================================
+                            |             EXPENSES OF
+                            +--------------------+----------+---------
+                            |  _a laborer's_     | _family_ |_a well-_
+                            |  _family_          | _of the_ |_to-do_
+     _Consumption Purpose._ |  _in comfortable_  | _middle_ |_family._
+                            |  _circumstances._  | _class._ |
+                            +----------+---------+----------+---------
+                            |    _In_  |  _In_   |  _In_    |  _In_
+                            |_Belgium._|_Saxony._|_Saxony._ |_Saxony._
+                            |   _per_  |  _per_  |  _per_   |  _per_
+                            |  _cent._ | _cent._ | _cent._  | _cent._
+     -----------------------+----------+---------+----------+---------
+     Food,                  |  61 \    | 62 \    |  55 \    |  50 \
+     Clothing,              |  15 }    | 16 } 95 |  18 } 90 |  18 } 85
+     Shelter,               |  10 } 95 | 12 }    |  12 }    |  12 }
+     Heating and lighting,  |   5 }    |  5 /    |   5 /    |   5 /
+     Utensils and tools,    |   4 /    |         |          |
+                            |          |         |          |
+     Education, instruction,|   2 \    |  2 \    | 3.5 \    | 5.5 \
+     Public security,       |   1 }  5 |  1 }  5 | 2   } 10 | 3   } 15
+     Sanitary purposes,     |   1 }    |  1 }    | 2   }    | 3   }
+     Personal services,     |   1 /    |  1 /    | 2.5 /    | 3.5 /
+     =======================+==========+=========+==========+=========
+
+     Hence _Engel_ thinks that when the articles of food,
+     clothing, shelter, heating and lighting have become dearer
+     by 50 per cent., and other wants have not, and it is desired
+     to proportionately increase the salaries of officials,
+     salaries of 300, 600 and 1,000 thalers should be raised to
+     427.5, 800 and 1,275 thalers respectively. (Preuss. Statist.
+     Zeitschr., 1875.) _E. Herrmann_, Pricipien der Wirthsch.,
+     106, estimates that in all Europe, 45.6 of all consumption
+     is for food, 13.2 for clothing, 5.7 for shelter, 4.6 for
+     furnishing, 5.3 for heating and lighting, 2.6 for tools and
+     utensils, 13.3 for public security, 6.6 for purposes of
+     recreation. Compare _Leplay_, Les Ouvriers Européens, 1855,
+     and _v. Prittwitz_, Kunst reich zu werden, 487 ff. The
+     expenses for shelter, service and sociability are specially
+     apt to increase with an increase of income.]
+
+     [Footnote 214-8: The necessity of an equilibrium between
+     production and consumption was pretty clear to many of the
+     older political economists. Thus, for instance, _Petty_
+     calls the coarse absence of the feeling of higher wants
+     among the Irish the chief cause of their idleness and
+     poverty. Similarly _Temple_, Observations on the N.
+     Provinces, ch. 6, in which Ireland and Holland are compared
+     in this relation. _North_, Discourses upon Trade, 14 seq.;
+     Potscr. _Roscher_, Zur Geschichte der english.
+     Volswirthschaftslehre, 83, 91, 127 ff. _Becher_, polit.
+     Discurs., 1668, 17 ff., was of opinion that the principal
+     cause keeping the three great estates together, the very
+     soul of their connection, was consumption. Hence the peasant
+     lived from the tradesman, and the tradesman from the
+     merchant. (_Boisguillebert_, Détail de la France, I, 4, II,
+     9, 21.) According to _Berkeley_, Querist, No. 20, 107, the
+     awakening of wants is the most probable way to lead a people
+     to industry. And so _Hume_, loc. cit., _Forbonnais_,
+     Eléments du Commerce, I, 364. The Physiocrates were in favor
+     of active consumption. Thus _Quesnay_, Maximes générales, 21
+     seq.; _Letrosne_, De l'Interêt social, I, 12. _La
+     reproduction et la consommation sont rêciprocquement la
+     mesure l'une de l'autre._ Some of them considered
+     consumption even as the chief thing (_Mirabeau_, Philosophie
+     rurale, ch. 1), which could never be too great. Further,
+     _Verri_, Meditazioni, I, 1-4. _Büsch_, Geldumlauf, III, 11
+     ff.
+
+     The moderns have frequently inequitably neglected the
+     doctrine of consumption. Thus it appears to be a very
+     characteristic fact that in _Adam Smith's_ great book, there
+     is no division bearing the title "consumption," and in the
+     Basel edition of 1801, that word does not occur in the
+     index. _Droz_ says that in reading the works of certain of
+     his followers, one might think that products were not made
+     for the sake of man, but man for their sake. But, on the
+     other hand, there came a strong reaction with _Lauderdale_,
+     Inquiry, ch. 5; _Sismondi_, N. Principes, L., II, passim;
+     _Ganilh_, Dictionnaire Analytique, 93 ff., 159 ff.; but
+     especially, and with important scientific discoveries,
+     _Malthus_, Principles, B. II. _St. Chamans_, Nouvel Essai
+     sur la Richesse des Nations, 1824, is an exaggerated
+     caricature of the theory of consumption. For instance, he
+     resolves the income of individuals into foreign demand or
+     the demand of strangers (29); considers the first condition
+     of public credit to lie in the making of outlay (32); and
+     even calls entirely idle consumers productive, for the
+     reason that they elevate by their demand a _utilité
+     possible_, to the dignity of a _utilité réelle_ (286 ff.)
+     The view advocated by Mirabeau, and referred to above, again
+     represented by _E. Solly_, Considerations on Political
+     Economy, 1814, and by _Weishaupt_, Ueb. die Staatsausgaben
+     und Auflagen, 1819. And so according to _Carey_, Principles,
+     ch. 35, § 6, the real difficulty does not lie in production,
+     but in finding a purchaser for the products. But he
+     overlooks the fact here that only the possessor of other
+     products can appear as a purchaser. From another side, most
+     socialists think almost exclusively of the wants of men, and
+     scarcely consider it worth their while to pay any attention
+     to the means of satisfying them.]
+
+
+SECTION CCXV.
+
+NECESSITY OF THE PROPER SIMULTANEOUS DEVELOPMENT OF PRODUCTION AND
+CONSUMPTION.
+
+Hence, one of the most essential conditions of a prosperous national
+economy is that the development of consumption should keep equal pace
+with that of production, and supply with demand.[215-1] The growth of a
+nation's economy naturally depends on this: that production should
+always be, so to speak, one step in advance of consumption, just as the
+organism of the animal body grows from the fact that the secretions
+always amount to something less than the amount of additional nutrition.
+A preponderance of secretions would here be disease; but so would be a
+too great preponderance of nutrition. Now, the politico-economical
+disease which is produced by the lagging behind of consumption and by
+the supply being much in advance of the demand, is called a commercial
+(market) crisis. Its immediate consequence is, that for a great many
+commodities produced, no purchasers can be found. The effect of this is
+naturally to lower prices. The profit of capital and wages diminish. A
+transition into another branch of production, not overcrowded, is either
+not possible at all or is attended with care, great difficulties and
+loss. It is very seldom that all these disadvantages are confined to the
+one branch in which the disease had its original seat. For, since the
+resources of the one class of producers have diminished, they cannot
+purchase as much from others as usual. The most distant members of the
+politico-economic body may be thereby affected.[215-2]
+
+     [Footnote 215-1: _Boisguillebert_ lays the greatest weight
+     on the harmony of the different branches of commerce.
+     _L'équilibre l'unique conservateur de l'opulence générale_;
+     this depends on there being always as many sales as
+     purchases. The moment one link in the great chain suffers,
+     all the others sympathise. Hence he opposes all taxation of
+     commodities which would destroy this harmony. (Nature des
+     Richesses, ch. 4, 5, 6; Factum de la France, ch. 4; Tr. des
+     Grains I, 1.) _Canard_ Principes d'E. politique, ch. 6,
+     compares the relation between production and consumption in
+     national economy with that between arteries and veins in the
+     animal body. On the other hand, _Sismondi_, N. Principes I,
+     381, describes the bewilderment and want which are wont to
+     arise when one wheel of the great politico-economical
+     machine turns round more rapidly than the others.]
+
+     [Footnote 215-2: Thus, for instance, an occasional
+     stagnation of the cotton factories of Lancashire has
+     frequently the effect of "making all England seem like a
+     sick man twisting and turning on his bed of pain." (_L.
+     Faucher._)]
+
+
+SECTION CCXVI.
+
+COMMERCIAL CRISES IN GENERAL.--A GENERAL GLUT.
+
+The greater number of such crises are doubtless special; that is, it is
+only in some branches of trade that supply outweighs demand. Most
+theorists deny the possibility of a general glut, although many
+practitioners stubbornly maintain it.[216-1] J. B. Say relies upon the
+principle that in the sale of products, as contradistinguished from
+gifts, inheritances, etc., payment can always be made only in other
+products. If, therefore, in one branch there be so much supplied that
+the price declines; as a matter of course, the commodity wanted in
+exchange will command all the more, and, therefore, have a better vent.
+In the years 1812 and 1813, for instance, it was almost impossible to
+find a market for dry goods and other similar products. Merchants
+everywhere complained that nothing could be sold. At the same time,
+however, corn, meat and colonial products were very dear, and,
+therefore, paid a large profit to those who supplied them.[216-2] Every
+producer who wants to sell anything brings a demand into the market
+exactly corresponding to his supply. (_J. Mill._) Every seller is _ex vi
+termini_ also a buyer; if, therefore production is doubled, purchasing
+power is also doubled. (_J. S. Mill._) Supply and demand are in the last
+analysis, really, only two different sides of one and the same
+transaction. And as long as we see men badly fed, badly clothed, etc.,
+so long, strictly speaking, shall we be scarcely able to say that too
+much food or too much clothing has been produced.[216-3]
+
+     [Footnote 216-1: When those engaged in industrial pursuits
+     speak of a lasting and ever-growing over-production, they
+     have generally no other reason for their complaints than the
+     declining of the rate of interest and of the undertaker's
+     profit which always accompany an advance in civilization.
+     Compare _J. S. Mill_, Principles, III, ch. 14, 4. However,
+     the same author, I, 403, admits the possibility of something
+     similar to a general over-production.]
+
+     [Footnote 216-2: _Say's_ celebrated Théorie des Débouchés,
+     called by McCulloch his chief merit, Traité, I, ch. 15. At
+     about the same time the same theory was developed by _J.
+     Mill_, Commerce defended, 1808. _Ricardo's_ express
+     adhesion, Principles, ch. 21. Important germs of the theory
+     may be traced much farther back: _Mélon_, Essai politique
+     sur le Commerce, 1734, ch. 2; _Tucker_, On the
+     Naturalization Bill, 13; Sketch of the Advance and Decline
+     of Nations, 1795, 182.]
+
+     [Footnote 216-3: Precisely the same commercial crisis, that
+     of 1817 seq., which more than anything else led _Sismondi_
+     to the conclusion that too much had been produced in all
+     branches of trade, may most readily be reduced to _Say's_
+     theory.
+
+     There was then a complaint, not only in Europe but also in
+     America, Hindoostan, South Africa and Australia, of the
+     unsaleableness of goods, overfull stores, etc.; but this,
+     when more closely examined, was found to be true only of
+     manufactured articles and raw material, of clothing and
+     objects of luxury; while the coarser means of subsistence
+     found an excellent market, and were sold even at the highest
+     prices. Hence, in this case, there was by no means any such
+     thing as over-production. The trouble was that in the
+     cultivation of corn and other similar products, too little
+     was produced. There was a bad harvest even in 1816.
+
+     The most important authorities in favor of the possibility
+     of a general glut are _Sismondi_, N. Principes, IV, ch. 4,
+     and in the Revue encyclopédique, Mai, 1824: Sur la Balance
+     des Consommations avec les Productions. Opposed by Say in
+     the same periodical (Juilliet, 1824); where the controversy
+     was afterwards reopened in June and July, 1827, by
+     _Sismondi_ and _Dunoyer_. Compare Etudes, vol. I; _Ganilh_,
+     Théorie, II, 348 ff.; _Malthus_, Principles, II, ch. 1, 8.
+     Compare _Rau_, _Malthus_ and Say, über die Ursachen der
+     jetzigen Handelsstockung, 1821. _Malthus'_ views were
+     surpassed by _Chalmers_, On Political Economy in Connexion
+     with the moral State of Society, 1832. But even _Malthus_
+     himself in his Definitions, ch. 10, No. 55, later, so
+     defined a "general glut" that there could be no longer
+     question of his holding to its universality. For an
+     impartial criticism, see especially _Hermann_, Staatsw.
+     Untersuchungen, 251, and _M. Chevalier_, Cours, 1, Leçon,
+     3.]
+
+
+SECTION CCXVII.
+
+COMMERCIAL CRISES IN GENERAL.
+
+All these allegations are undoubtedly true, in so far as the whole world
+is considered one great economic system, and the aggregate of all goods,
+including the medium of circulation, is borne in mind. The consolation
+which might otherwise lie herein is made indeed to some extent
+unrealizable by these conditions. It must not be forgotten in practice
+that men are actuated by other motives than that of consuming as much as
+possible.[217-1] As men are constituted, the full consciousness of this
+possibility is not always found in connection with the mere power to do,
+to say nothing of the will to do.[217-2] There are, everywhere, certain
+consumption-customs corresponding with the distribution of the national
+income. Every great and sudden change in the latter is therefore wont to
+produce a great glut of the market.[217-3] The party who in such case
+wins, is not wont to extend his consumption as rapidly as the loser has
+to curtail his; partly for the reason that the former cannot calculate
+his profit as accurately as the latter can his loss.[217-4]
+
+Thus laws, the barriers interposed by tariffs, etc., may hinder the
+too-much of one country to flow over into the too-little of another.
+England, for instance might be suffering from a flood of manufactured
+articles and the United States from an oppressive depreciation in the
+value of raw material; but the tariff-laws places a hermetic dike
+between want on one side and superfluity on the other. Strong national
+antipathies and great differences of taste stubbornly adhered to may
+produce similar effects; for instance between the Chinese and Europeans.
+Even separation in space, especially when added to by badness of the
+means of transportation may be a sufficient hinderance especially when
+transportation makes commodities so dear that parties do not care to
+exchange. In such cases, it is certainly imaginable that there should be
+at once a want of proper vent or demand for all commodities; provided,
+we look upon each individual class of commodities the world over as one
+whole, and admit the exception that in individual places, certain parts
+of the whole more readily find a market because of the general crisis.
+
+Lastly, the mere introduction of trade by money destroys as it were the
+use of the whole abstract theory.[217-5] So long as original barter
+prevailed, supply and demand met face to face. But by the intervention
+of money, the seller is placed in a condition to purchase only after a
+time, that is, to postpone the other half of the exchange-transaction as
+he wishes. Hence it follows that supply does not necessarily produce a
+corresponding demand in the real market. And thus a general crisis may
+be produced, especially by a sudden diminution of the medium of
+circulation.[217-6] And so, many very abundant harvests, which have
+produced a great decline in the value of raw material, and no less so a
+too large fixation of capital which stops before its completion,[217-7]
+may lead to general over-production. In a word, production does not
+always carry with itself the guaranty that it shall find a proper
+market, but only when it is developed in all directions, where it is
+progressive and in harmony with the whole national economy. To use
+Michel Chevalier's expression, the saliant angles of the one-half must
+correspond to the re-entrant angles of the other, or confusion will
+reign everywhere. Even in individual industrial enterprises, the proper
+combination of the different kinds of labor employed in them is an
+indispensable condition of success. Let us suppose a factory in which
+there are separate workmen occupied with nothing but the manufacture of
+ramrods. If these now exceed the proper limits of their production and
+have manufactured perhaps ten times as many ramrods as can be used in a
+year, can their colleagues, employed in the making of the locks or
+butt-ends of the gun, profit by their outlay? Scarcely. There will be a
+stagnation of the entire business, because part of its capital is
+paralyzed, and all the workmen will suffer damage.[217-8] [217-9]
+
+     [Footnote 217-1: As _Ferguson_, History of Civil Society,
+     says, the person who thinks that all violent passions are
+     produced by the influence of gain or loss, err as greatly as
+     the spectators of Othello's wrath who should attribute it to
+     the loss of the handkerchief.]
+
+     [Footnote 217-2: If all the rich were suddenly to become
+     misers, live on bread and water, and go about in the
+     coarsest clothing, etc., it would not be long before all
+     commodities, the circulating medium excepted, would feel the
+     want of a proper market--all, including even the most
+     necessary means of subsistence, because a multitude of
+     former consumers, having no employment, would be obliged to
+     discontinue their demand. Over-production would be greater
+     yet if a great and general improvement in the industrial
+     arts or in the art of agriculture had gone before. Compare,
+     _Lauderdale_ Inquiry, 88. This author calls attention to the
+     fact that a market in which the middle class prevails must
+     put branches of production in operation very different from
+     those put in operation where there are only a few over-rich
+     people, and numberless utterly poor ones: England, the
+     United States--the East Indies, and France before the
+     Revolution. (Ch. 5, especially p. 358.)]
+
+     [Footnote 217-3: If England, for instance, became bankrupt
+     as a nation, the country would not therefore become richer
+     or poorer. The national creditors would lose about
+     £28,000,000 per annum, but the taxpayers would save that sum
+     every year. Now, of the former, there are not 300,000
+     families; of the latter there are at least 5,000,000. Hence,
+     the loss would there amount to £100 a family per annum, and
+     the gain here to not £6 per family. We may therefore assume
+     with certainty that the two items would not balance each
+     other as to consumption. The creditors of the nation, a
+     numerous, and hitherto a largely consuming class, now
+     impoverished, would be obliged to curtail their demand for
+     commodities of every kind to a frightful extent; while a
+     great many taxpayers would not feel justified in basing an
+     immediate increase of their demand on so small a saving.
+     Other revolutions, more political in character, may operate
+     in the same direction by despoiling a brilliant court, a
+     luxurious nobility or numerous official classes of their
+     former income.]
+
+     [Footnote 217-4: The above truth has been exaggerated by
+     Malthus and his school into the principle that a numerous
+     class of "unproductive consumers," who consume more than
+     they produce, is indispensable to a flourishing national
+     economy. From this point of view, the magnitude of England's
+     debt especially has been made a subject of congratulation.
+     Compare _Malthus_, Principles, II, ch. 1, 9. Similarly
+     _Ortes_, E. N., III, 17, to whom even the _impostori
+     mezzani_ and _ladri_ seem to be a kind of necessity. (III,
+     23.) _Chalmers_, Political Economy, III ff. If it was only
+     question of consumption here, all that would be needed would
+     be to throw away the commodities produced in excess. Those
+     writers forget that a consumer, to be desirable, should be
+     able to offer counter-values.]
+
+     [Footnote 217-5: _Malthus_, Principles, II, ch. 1, 3.]
+
+     [Footnote 217-6: Let us suppose a country which has been
+     used to effecting all its exchanges by means of
+     $100,000,000. All prices have been fixed, or have regulated
+     themselves accordingly. Let us now suppose that there has
+     been a sudden exportation of $10,000,000, and under such
+     circumstances as to delay the rapid filling up of the gap
+     thus created. In the long run, the demand of a country for a
+     circulation may be satisfied just as well with $90,000,000
+     as with $100,000,000; only it is necessary in the first
+     instance that the circulation should be accelerated or that
+     the price of money should rise 10 per cent. But neither of
+     these accommodations is possible immediately. In the
+     beginning, sellers will refuse to part with their goods 10
+     per cent. cheaper than they have been wont to. But so long
+     as those engaged in commercial transactions have not become
+     completely conscious of the revolution which has taken place
+     in prices, and do not act accordingly, there is evidently a
+     certain ebb in the channels of trade, and simultaneously in
+     all. Demand and supply are kept apart from each other by the
+     intervention of a generally prevailing error concerning the
+     real price of the medium of circulation, and there must be,
+     although only temporarily, buyers wanted by every seller,
+     except the seller of money. In a country with a paper
+     circulation, every great depreciation of the value of the
+     paper money not produced by a corresponding increase of the
+     same, may produce such results. _Say_ is wrong when he says
+     that a want of instruments of exchange may be always
+     remedied immediately and without difficulty.]
+
+     [Footnote 217-7: Suppose a people, the country population of
+     which produce annually $100,000,000 in corn over and above
+     their own requirements, and thus open a market for those
+     engaged in industrial pursuits to the extent of
+     $100,000,000. And suppose that in consequence of three
+     plentiful harvests, and because of an inability to export,
+     the market should grow to be over-full, to such an extent
+     that the much greater stores of corn have now (§ 5, 103) a
+     much smaller value in exchange than usual. The latter may
+     have declined to $70,000,000. Hence the country people now
+     can buy from the cities only $70,000,000 of city wares. The
+     cities, therefore, suffer from over-production. That people
+     dispensing with the use of money should establish an
+     immediate trade between wheat and manufactured articles, in
+     which case the latter would exchange against a large
+     quantity of the former, is not practicable, because no one
+     can extend his consumption of corn beyond the capacity of
+     his stomach, and the storage of wheat with the intention of
+     selling it when the price advances is attended with the
+     greatest difficulties.]
+
+     [Footnote 217-8: If, for instance, there are too many
+     railroads in process of construction, all other commodities
+     may in consequence lose in demand, and when the further
+     construction begins to be arrested on account of a
+     superfluity of roads, the new rail factories, etc. are
+     involved in the crisis.]
+
+     [Footnote 217-9: On the special pathology and therapeutics
+     of this economic disease, compare _Roscher_, Die
+     Productionskrisen, mit besonderer Rücksicht auf die letzen
+     Jahrzente in the Gegenwart, Brockhaus, 1849, Bd., III, 721
+     ff., and his Ansichten der Volkswirthschaft, 1861, 279 ff.]
+
+
+SECTION CCXVIII
+
+PRODIGALITY AND FRUGALITY.
+
+Prodigality is less odious than avarice, less irreconcilable with
+certain virtues, but incomparably more detrimental to a nation's
+economy. The miser's treasures, even when they have been buried, may be
+employed productively, at least, after his death; but prodigality
+_destroys_ resources. So, too, avarice is a repulsive vice, extravagance
+a seductive one. The practice of frugality[218-1] in every day life is
+as far removed from one extreme as the other. It is the "daughter of
+wisdom, the sister of temperance and the mother of freedom." Only with
+its assistance can liberality be true, lasting and successful. It is, in
+short, reason and virtue in their application to consumption.[218-2]
+[218-3]
+
+     [Footnote 218-1: Negatively: the principle of sparing;
+     positively: the principle of making the utmost use of
+     things. (_Schäffle_, Kapitalismus und Socialismus, 27.)]
+
+     [Footnote 218-2: Admirable description of economy in _B.
+     Franklin's_ Pennsylvanian Almanac, How poor Rich. Saunders
+     got rich; also in _J. B. Say_, Traité, III, ch. 5. _Adam
+     Smith_, W. of N., II, ch. 3, endeavors to explain why it is
+     that, on the whole and on a large scale, the principle of
+     economy predominates over the seductions of extravagance.
+     This, however, is true only of progressive nations.]
+
+     [Footnote 218-3: The Savior Himself in His miracles, the
+     highest pattern of economy: _Matth._, 14, 20; _Mark_, 6, 43;
+     8, 8; _Luke_, 9, 17; _John_, 6, 12. That He did not intend
+     to prohibit thereby all noble luxury is shown by passages
+     such as _Matth._, 26, 6 ff.; _John_, 2, 10.]
+
+
+SECTION CCXIX.
+
+EFFECT OF PRODIGALITY.
+
+Prodigality destroys goods which either were capital or might have
+become capital. But, at the same time, it either directly or indirectly
+increases the demand for commodities. Hence, for a time, it raises not
+only the interest of capital, but the prices of many commodities.
+Consumers naturally suffer in consequence; many producers make a profit
+greater than that usual in the country until such time as the
+equilibrium between supply and demand has been restored by an increase
+of the supply of the coveted products. But the capital of spendthrifts
+is wont to be suddenly exhausted; demand suddenly decreases, and
+producers suffer a crisis. As Benjamin Franklin says, he who buys
+superfluities will at last have to sell necessities. Thus the
+extravagance of a court may contribute to the rapid prosperity of a
+place of princely residence.[219-1] But it should not be forgotten that
+all the food-sap artificially carried there had to be previously
+withdrawn from the provinces. The clear loss caused by the destruction
+of wealth should also be borne in mind.[219-2] [219-3]
+
+     [Footnote 219-1: A rapid change of hands by money, as it is
+     called in every day life. See, _per contra_, _Tucker_,
+     Sermons, 31, 1774.]
+
+     [Footnote 219-2: Only the superficial observer is apt to
+     notice this apparent prosperity of the capital much more
+     readily than the decline of the rest of the country, which
+     covers so much more territory. In like manner, many wars
+     have had the appearance of promoting industry, for the
+     reason that some branches grew largely in consequence of the
+     increased demand of the state; but they grew at the expense
+     of all others which had to meet the increased taxes. Compare
+     _Jacob_ in _Lowe_, England nach seinem gegenwartigen
+     Zustande, 1823, cap. 2, 3; _Nebenius_, Oeffentlicher Credit,
+     I, Aufl., 419 ff.; _Hermann_, department of the Seine,
+     amounted, in 1850, to 497,000,000 francs; in the department
+     of the Bouches du Rhone, to 39,000,000 francs; in 1855, on
+     the other hand, they were, on account of the war,
+     887,000,000 francs and 141,000,000. (Journal des Econ.,
+     Juil., 1857, 32 ff.)]
+
+     [Footnote 219-3: The Journal des Economistes for March,
+     1854, very clearly shows, in opposition to the
+     state-sophists who recommended extravagant balls, etc. as a
+     means of advancing industry, and who even advocated the
+     paying officials higher salaries on this account, and making
+     greater outlays by them compulsory, that such luxury when it
+     comes of itself may be a symptom of national wealth, but
+     that it is a very bad means to produce prosperity
+     artificially.]
+
+
+SECTION CCXX.
+
+WHEN SAVING IS INJURIOUS.
+
+The act of saving, if the consumption omitted was a productive one, is
+detrimental to the common good; because now a real want of the national
+economy remains unsatisfied.[220-1] The effecting of savings by
+curtailing unproductive consumption may embarrass those who had
+calculated on its continuance. But its utility or damage to the whole
+national economy will depend on the application or employment of what is
+saved. Here two different cases are possible.
+
+A. It is stored up and remains idle. If this happens to a sum of money,
+the number of instruments of exchange in commerce is diminished. Hence,
+in consequence, there may be either a general fall in the price of
+commodities, or some commodities may remain unsold; that is, according
+to § 217, a commercial crisis of greater or smaller extent.[220-2] If it
+be objects of immediate consumption that are stored up and lie idle,
+articles of food or clothing, for instance, the price of such
+commodities is wont to be raised by the new and unusual demand for them,
+precisely as it is lowered afterwards when the stores are suddenly
+opened and thrown upon the market.[220-3]
+
+B. If the saving effected be used to create fixed capital, there is as
+much consumption of goods, the same support of employed workmen, the
+same sale for industrial articles as in the previous unproductive
+consumption; only, there the stream is usually conducted into other
+channels. If a rich man now employs in house-building what he formerly
+paid out to mistresses; masons, carpenters, etc. earn what was formerly
+claimed by hair-dressers, milliners, etc.: there is less spent for
+truffles and champagne and more for bread and meat. The last result is a
+house which adds permanently either to personal enjoyment, or
+permanently increases the material products of the nation's
+economy.[220-4] And it is just so when the wealth saved is used as
+circulating capital. Here, the wealth saved is consumed in a shorter or
+longer time; and to superficial observers, this saving might seem like
+destruction; but it is distinguished from the last by this, that it
+always reproduces its full equivalent and more. However, the whole
+quantity of goods brought into the market by such new capital cannot be
+called its product. Only the use (_Nützung_) of the new capital can be
+so called; that is the holding together or the development in some other
+way of other forces which were already in existence until their
+achievements are perfected and ready for sale.[220-5] [220-6]
+
+     [Footnote 220-1: What evil influences such saving can have
+     may be seen from Prussian frugality in its military system
+     before 1806.]
+
+     [Footnote 220-2: The custom of burying treasure is produced
+     by a want of security (compare _Montanari_, Delia Moneta,
+     1683-87, 97 Cust.), and by an absence of the spirit which
+     leads to production. As _Burke_ says, where property is not
+     sacred, gold and silver fly back into the bosom of the earth
+     whence they came. Hence, in the middle ages, this custom was
+     frequent, and is yet, in most oriental despotic countries.
+     (_Montesquieu_, E. des L., XXII, 2.) And so in Arabia: _d'Arvieux_,
+     _Rosenmüller's_ translation, 61 seq. _Fontanier_, Voyage dans l'Inde
+     et dans le Golfe persique, 1644, I, 279. A Persian governor on his
+     death bed refused to give any information as to where he had buried
+     his treasure. His father had always murdered the slave who helped him
+     to bury his money or any part of it. (_Klemm_, Kulturgeschichte, VII,
+     220.) In lower stages of civilization, it is a very usual luxury to
+     have one's treasures buried with the corpse. In relation to David's
+     grave, see _Joseph._, Ant. Jud., VII, 15,3, XIII, 8, 4; XVI, 7, 1.
+     Hence the orientals believe that _every_ unknown ruin hides a
+     treasure, that every unintelligible inscription is a talisman to
+     discover it by, and that every scientific traveler is a
+     treasure-digger, (_v. Wrede_, R. in Hadhramaut, 113, 182 and
+     _passim_.) Similarly in Sicily. (_Rehfues_, Neuester Zustand von S.,
+     1807, I, 99.) In the East Indies every circumstance that weakens
+     confidence in the power of the government increases the frequency of
+     treasure-burial, as was noticed, for instance, after the Afghan
+     defeat. Treasure-burial by the Spanish peasantry (_Borrego_,
+     translated by Rottenkamp, 81), in Ireland (_Wakefield_, Account of I.
+     I, 593), in the interior of Russia (_Storch_, Handbuch, I, 142), and
+     among the Laplanders. The custom was very much strengthened among the
+     latter when, in 1813, they lost 80 per cent. by the bankruptcy of the
+     state through its paper money. (_Brooke_, Winter in Lapland, 1829,
+     119; compare _Blom_, Statistik von Norwegen, II, 205.) As during the
+     Thirty Years' War, so also in 1848, it is said that large amounts of
+     money were burned by the Silesian and Austrian peasantry. Much of it
+     is lost forever, but, on the whole, much treasure is wont to be found
+     where much is buried; governments there make it a regal right to
+     search for it.]
+
+     [Footnote 220-3: If the hoarding takes place in a time of
+     superfluity, and the restitution of the stores in a time of
+     want, there is of course no detrimental disturbance, but on
+     the contrary the consequence is a beneficent equilibrium of
+     prices. This is the fundamental idea in the storage of
+     wheat.]
+
+     [Footnote 220-4: In the construction of national buildings,
+     etc., we have the following course of things: compulsory
+     contributions made by taxpayers, or an invitation to the
+     national creditors to desist somewhat from their usual
+     amount of consumption, and to employ what is saved in the
+     building of canals, roads etc. In France, for instance,
+     after 1835, 100,000,000 francs per annum. (_M. Chevalier_,
+     Cours, I, 109.) The higher and middle classes of England
+     saved, not without much trouble, however, between 1844 and
+     1858, £134,500,000 in behalf of railway construction.
+     _Tooke-Newmarch_.]
+
+     [Footnote 220-5: Such savings have sometimes been prescribed
+     by the state. In ancient Athens many prohibitions of
+     consumption in order to allow the productive capital to
+     first attain a certain height. Thus it was forbidden to
+     slaughter sheep until they had lambed, or before they were
+     shorn. (_Athen._, IX, 375, I. 9.) Similarly the old
+     prohibition of the exportation of figs. (Ibid., III, 74.)
+     Compare Petit. Leges. Atticae, V, 3. _Boeckh_,
+     Staatshaushaltung, I, 62 seq.]
+
+     [Footnote 220-6: The process of the transformation of
+     savings from a money-income, in a money-economy
+     (_Geldwirthschaft_), into other products, more closely
+     analyzed in _v. Mangoldt_, V. W. L., 152 ff.]
+
+
+SECTION CCXXI.
+
+LIMITS TO THE SAVING OF CAPITAL.
+
+It may be seen from the foregoing, that the mere saving of capital, if
+the nation is to be really enriched thereby, has its limits. Every
+consumer likes to extend his consumption-supply and his capital in use
+(_Gebrauchskapitalien_); but not beyond a certain point.[221-1] Besides,
+as trade becomes more flourishing, smaller stores answer the same
+purpose. And no intelligent man can desire his productive capital
+increased except up to the limit that he expects a larger market for his
+enlarged production. What merchant or manufacturer is there who would
+rejoice or consider himself enriched, if the number of his customers and
+their desire to purchase remaining the same, he saw his stores of
+unsaleable articles increase every year by several thousands?
+
+This is another difference between national resources or world resources
+and private resources. The resources of a private person, which are only
+a link in the whole chain of trade, and which are, therefore, estimated
+at the value in exchange of their component parts should, indeed, always
+be increased by savings made. (§ 8.) For even the most excessive
+increase of supply in general, which largely lowers the price of a whole
+class of commodities, will never reduce the price of individual
+quantities of that commodity below zero, and scarcely to zero. It is
+quite otherwise in the case of national or world resources which must be
+estimated according to the value in use of their component parts. Every
+utility supposes a want. Where, therefore, the want of a commodity has
+not increased, and notwithstanding there is a continuing increase in the
+supply, the only result must be a corresponding decrease in the utility
+of each individual part.[221-2]
+
+If a people were to save all that remained to them over and above their
+most urgent necessities, they would soon be obliged to seek a wider
+market in foreign countries, or loan their capital there; but they would
+make no advance whatever in higher culture nor add anything to the
+gladness of life.[221-3] On the other hand, if they would not save at
+all, they would be able to extend their enjoyments only at the expense
+of their capital and of their future. Yet these two extremes find their
+correctives in themselves. In the former case, a glut of the market
+would soon produce an increased consumption and a diminished production;
+in the latter the reverse. The ideal of progress demands that the
+increased outlay with increased production should be made only for
+worthy objects, and chiefly by the rich, while the middle and lower
+classes should continue to make savings and thus contribute to wipe out
+differences of fortune.[221-4]
+
+     [Footnote 221-1: Up to this point, indeed, wants increase
+     with the means of their satisfaction. The man who has two
+     shirts always strives to get a dozen, while the person who
+     has none at all, very frequently does not care for even one.
+     And so the person who has silver spoons generally desires
+     also to possess silver candle-sticks and silver plates. On
+     Lucullus' 5,000 chlamydes, see _Horat._, Epist., I, 6, 40
+     ff.]
+
+     [Footnote 221-2: That consumption and saving are not two
+     opposites which exclude each other is one of _Adam Smith's_
+     most beautiful discoveries. See Wealth of Nat., II, ch. 3.
+     But compare _Pinto_, Du Crédit et de la Circulation, 1771,
+     335. Before his time most writers who were convinced of the
+     necessity of consumption were apologists of extravagance.
+     Thus _v. Schröder_, F. Schatz- und Rentkammer, 23 seq. 47,
+     172. Louis XIV.'s saying: "A King gives alms when he makes
+     great outlays." According to _Montesquieu_, Esprit des Louis
+     VII., 4, the poor die of hunger when the rich curtail their
+     expenses. This view, which must have found great favor among
+     the imitators of Louis XIV. and Louis XV. was entertained to
+     some extent by the Physiocrates; for instance, _Quesnay_,
+     Maximes générales, 21 seq. Compare _Turgot_, Œuvres, éd,
+     _Dare_, 424 ff. On the other hand, _Adam Smith_, loc. cit.
+     says that the spendthrift is a public enemy, and the person
+     who saves a public benefactor. _Lauderdale_, Inquiry, 219,
+     reacts so forcibly against the one-sidedness which this
+     involves that he believes no circumstance possible "which
+     could so far change the nature of things as to turn
+     parsimony into a means of increasing wealth." In his polemic
+     against Pitts' sinking fund as inopportune and excessive, he
+     assumes that all sums saved in that way are completely
+     withdrawn from the national demand. See per contra
+     _Hufeland_ n. Grundlegung I, 32, 238. _Sismondi_, N. P. II,
+     ch. 6, with his distinction between _production_ and
+     _revenu_, is more moderate; the former is converted into the
+     latter only in as much as it is "realized," that is, finds a
+     consumer who desires it, and pays for it. Now only can the
+     producer rely on anything; can he restore his productive
+     capital, estimate his profit, and use it in consumption, and
+     lastly begin the whole business over again.... A stationary
+     country must remain stationary in everything. It cannot
+     increase its capital and widen its market while its
+     aggregate want remains unaltered. (IV, ch. 1.)]
+
+     [Footnote 221-3: Thus _John Stuart Mill_ thinks that the
+     American people derive from all their progress and all their
+     favorable circumstances only this advantage: "that the life
+     of the whole of one sex is devoted to dollar-hunting, and of
+     the other to breeding dollar-hunters." (IV, ch. 6, 2.) In
+     the popular edition of 1865, after the experience of the
+     American civil war, he materially modified this judgment.]
+
+     [Footnote 221-4: _Storch_, Nationaleinkommen, 125 ff. That
+     there is at least not too much to be feared from the making
+     of too great savings is shown by _Hermann_, St. Untersuch.,
+     371 seq. On the other hand, there is less wealth destroyed
+     by spendthrifts than is generally supposed, for spendthrifts
+     are most frequently cheated by men who make savings
+     themselves. (_J. S. Mill_, Principles, I, ch. 5, 5.)]
+
+
+SECTION CCXXII.
+
+SPENDTHRIFT NATIONS.
+
+As there are extravagant and frugal individuals, so also are there
+extravagant and frugal nations. Thus, for instance, we must ascribe
+great national frugality to the Swiss. In many well-to-do families in
+that country, it is a principle acted upon to require the daughters to
+look to the results of their white sewing, instead of giving them
+pin-money; to gather up the crumbs after coffee parties in the presence
+of the guests, and to make soup of them afterwards, etc. Sons are
+generally neither supported nor helped to any great extent by their
+parents in their lifetime, and are required to found their own homes.
+They, therefore, grow rich from inheritance only late in years, when
+they are accustomed to a retired and modest mode of life, and have
+little desire, from mere convenience sake, to change it for another. And
+so Temple informs us that it never occurs to the Dutch that their outlay
+should equal their income; and when this is the case they consider that
+they have spent the year in vain. Such a mode of life would cost a man
+his reputation there as much as vicious excess does in other countries.
+The greatest order and the most accurate calculation of all outlay in
+advance is found in union with this; so that Temple assures us he never
+heard of a public or private building which was not finished at the time
+stipulated for in advance.[222-1]
+
+On the other hand, the Englishman lives rather luxuriantly. He is so
+used to enjoying comparative abundance, that when English travelers see
+the peasantry of the continent living in great frugality, they generally
+attribute it to poverty and not to their disposition to make savings. If
+England has grown rich, it is because of the colossal magnitude of its
+production, which is still more luxuriant and abundant than its
+consumption.[222-2] This contrast may be the effect in part of
+nationality and climate;[222-3] but it is certainly the effect in part
+also of a difference in the stage of civilization which these countries
+have respectively reached. The elder Cato had a maxim that a widow
+might, indeed, allow her fortune to diminish, but that it was a man's
+duty to leave more behind him than he had inherited.[222-4] And how
+prodigally did not the lords of the universe live in later times!
+
+     [Footnote 222-1: _Temple_, Observations on the U. Provinces,
+     Works, I, 136, 138 seq., 179. _Roscher_, Geschichte der
+     engl. Volkswirthschaftsl., 129. Thus, for instance, the
+     Richesse de Hollande, I, 305, describes a rich town near
+     Amsterdam in which a man with an income of 120,000 florins a
+     year expended probably only 1,000 florins per annum on
+     himself.]
+
+     [Footnote 222-2: As early a writer as _D. Defoe_, Giving
+     Alms no Charity! 1704, says: the English get estates; the
+     Dutch save them. An Englishman at that time with weekly
+     wages of 20 shillings just made ends meet; while a Dutchman
+     with the same grew rich, and left his children behind him in
+     very prosperous circumstances, etc. _L. Faucher_ draws a
+     similar contrast between his fellow countrymen and the
+     English. _Goethe's_ ingenuous observations (Werke, Bd., 23,
+     246, ed. of 1840) in his Italian journey, show that the
+     Italians, too, know how to save. _Molti pochi fanno un
+     assai!_ And so in Bohemia, the Czechs have a good reputation
+     for frugality, sobriety, etc. as workmen. They are more
+     frugal than the Germans, although all the larger businesses
+     belong to Germans, because when the Czech has saved
+     something, he prefers to return to his village to putting
+     his savings in jeopardy by speculation.]
+
+     [Footnote 222-3: Drunkenness a common vice of northern
+     people: thus in antiquity the Thracians (_Athen._, X, 42;
+     _Xenoph._, Exp. Cyri, VII, 3, 32), the Macedonians, for
+     instance, Philips (_Demosth._, Olynth., II, 23) and
+     Alexander's (_Plutarch_, Alex., 70; De Adulat, 13). To drink
+     like a Scythian, meant, among the Greeks, to drink like a
+     beast. (_Athen._, X, 427; _Herod._, VI, 84.) On North German
+     drunkenness in the 16th century, see _Seb. Münster_,
+     Cosmogr., 326, 730. _Kantzow_, Pomerania, II, 128.]
+
+     [Footnote 222-4: _Plutarch_, Cato, I, 21.]
+
+
+SECTION CCXXIII.
+
+THE MOST DETRIMENTAL KIND OF EXTRAVAGANCE.
+
+The kind of extravagance which it is most natural we should desire to
+see put an end to, is that which procures enjoyment to no one. I need
+call attention only to the excessive durability and solidity of certain
+buildings. It is more economical to build a house that will last 60
+years for $10,000, than one which will last 400 years for $20,000; for
+in 60 years the interest saved on the $10,000 would be enough to build
+three such houses.[223-1] This is, of course, not applicable to houses
+built as works of art, or only to produce an imposing effect. The object
+the ancient Egyptians had in view in building their obelisks and
+pyramids continues to be realized even in our day.
+
+I might also call attention to the premature casting away of things
+used. Our national economy has saved incredible sums since rags have
+been manufactured into paper. In Paris 4,000 persons make a living from
+what they pick up in the streets.[223-2]
+
+     [Footnote 223-1: Compare _Minard_, Notions élémentaires
+     d'Economie politique appliquée aux Travaux publics, 1850, 71
+     ff. He calls to mind the many strong castles of the age of
+     chivalry, the Roman aqueducts, theaters, etc., which are
+     still in a good state of preservation, but which can be used
+     by no one; so many bridges too narrow for our purposes, and
+     so many roads too steep. The sluices at Dunkirk, made 12.60
+     metres in width by Vauban, were made 16 meters wider in
+     1822, and still are too narrow for Atlantic steamships. In
+     England, private individuals have well learned to take all
+     this into account. Compare _J. B. Say_, Cours pratique,
+     translated by Morstadt, I, 454 ff.]
+
+     [Footnote 223-2: _Fregier_, Die gefährlichen Klassen,
+     translated 1840, I, 2, 38. In Yorkshire it is said that
+     woolen rags to the amount of £52,000,000 a year are
+     manufactured into useful articles. (_Tooke_,
+     Wool-Production, 196.) Compare The Use of Refuse: Quart.
+     Rev., April, 1868. On the ancient Greek ragpickers the
+     so-called σπερμολόγοις, see _St. John_, The Hellenes, III,
+     91; on the Roman _Centonariis_: _Cato_, R. R., 135;
+     _Columella_, R. R., I, 8, 9; _Marquardt_, II, 476, V, 2,
+     187.]
+
+
+
+
+CHAPTER II.
+
+LUXURY.
+
+
+SECTION CCXXIV.
+
+LUXURY IN GENERAL.
+
+The idea conveyed by the word luxury is an essentially relative one.
+Every individual calls all consumption with which he can dispense
+himself, and every class that which seems not indispensable to
+themselves, luxury. The same is true of every age and nation. Just as
+young people ridicule every old fashion as pedantry, every new fashion
+is censured by old people as luxury.[224-1]
+
+But (§ I) a higher civilization always finds expression in an increased
+number and an increased urgency of satisfied wants. Yet, there is a
+limit at which new or intensified wants cease to be an element of higher
+civilization, and become elements of demoralization. Every immoral and
+every unwise want exceeds this limit.[224-2] Immoral wants are not only
+those the satisfaction of which wounds the conscience, but also those in
+which the necessities of the soul are postponed to the affording of
+superfluities to the body; and where the enjoyment of the few is
+purchased at the expense of the wretchedness of the many. And not only
+those are unwise or imprudent for which the voluntary outlay is greater
+than one's income, but those also where the indispensable is made to
+suffer for the dispensable.
+
+Thus it was in Athens, in the time of Demosthenes, when the festivities
+of the year cost more than the maintenance of the fleet; when Euripides'
+tragedies came dearer to the people than the Persian war in former
+times. There was even a law passed (Ol. 107,4) prohibiting the
+application of the dramatic fund to purposes of war under pain of
+death.[224-3]
+
+In the history of any individual people, it may be shown with
+approximate certainty at what point luxury exceeded its salutary limits.
+But in the case of two different nations, it is quite possible that what
+was criminal prodigality with the one, may have been a salutary
+enjoyment of life with the other; in case their economic
+(_wirthschaftlichen_) powers are different. Precisely as in the case of
+individuals, where for instance, the daily drinking of table wine may be
+simplicity in the rich and immoral luxury in the case of a poor father
+of a family.[224-4] Healthy reason has this peculiarity, that where
+people will not listen to it, it never hesitates to make itself felt.
+(_Benjamin Franklin._)[224-5]
+
+However, the luxury of a period always throws itself, by way of
+preference, on those branches of commodities which are cheapest.
+
+     [Footnote 224-1: _Stuart_, Principles, II, ch. 30,
+     _Ferguson_, History of Civil Society, VI, 2. Thus
+     _Dandolus_, Chron. Venet., 247, tells of the wife of a doge
+     at Constantinople who was so given to luxury that she ate
+     with a golden fork instead of her fingers. But she was
+     punished for this outrage upon nature: her body began to
+     stink even while she was alive. In the introduction to
+     _Hollinshed's_ Chronicon, 1557, there is a bitter complaint
+     that, a short time previous, so many chimneys had been
+     erected in England, that so many earthen and tin dishes had
+     been introduced in the place of wooden ones. Another author
+     finds fault that oak was then used in building instead of
+     willow, and adds that formerly the men were of oak but now
+     of willow. _Slaney_, On rural Expenditure, 41. Compare
+     _Xenoph._, Cyrop., VIII, 8, 17.]
+
+     [Footnote 224-2: Biblically determined: _Romans_, 13, 14.]
+
+     [Footnote 224-3: _Plutarch_, De Gloria Athen., 348.
+     _Athen._, XIV, 623. Petit. Legg. Att., 385.]
+
+     [Footnote 224-4: _Livy_, XXXIV, 6 ff.]
+
+     [Footnote 224-5: Most writers who have treated of luxury at
+     all have generally confined themselves to inquiring whether
+     it was salutary or reprehensible. Aristippus and
+     Antisthenes, Diogenes, etc.; Epicureans and Stoics. The
+     latter were reproached with being bad citizens, because
+     their moderation in all things was a hindrance to trade.
+     (_Athen._, IV, 163.) The Aristotelian _Herakleides_ declared
+     luxury to be the principal means to inspire men with
+     noble-mindedness; inspired by luxury, the Athenians
+     conquered at Marathon. (_Athen._, XII, 512.) _Pliny_ was one
+     of the most violent opponents of luxury. See _Pliny_, N. N.,
+     XXXIII, 1, 4, 13, and other places. The controversy has been
+     renewed by the moderns, especially since the beginning of
+     the 18th century, after luxury of every kind had previously
+     (for the most part on theological grounds, but also by
+     Hutten, for instance) been one-sidedly condemned. Among its
+     defenders were _Mandeville_, The Fable of the Bees, 1706,
+     who, however, calls everything a luxury which exceeds the
+     baldest necessities of life; _Voltaire_ in Le Mondain, the
+     Apologie du Luxe, and Sur L'Usage de la Vie; _Mélon_, Essai
+     politique sur le Commerce, ch. 9; _Hume_, Discourses, No. 2,
+     On Refinement in the Arts; _Dumont_, Théorie du Luxe, 1771;
+     _Filangieri_, Delle Leggi politiche ed economiche, II, 37;
+     and the majority of the Mercantile school and of the
+     Physiocrates. Among the opponents of luxury, _J. J.
+     Rousseau_ towers over almost all others. Further, _Fénélon_,
+     Télémaque, 1699, L. XXII; _Pinto_, Essai sur le Luxe, 1762.
+
+     The reasons and counter-reasons advanced by those writers
+     apply not only to luxury but to the lights and shades of
+     high civilization in general. When a political economist
+     declares for or against luxury in general, he resembles a
+     doctor who should declare for or against the nerves in
+     general. There has been luxury in every country and in every
+     age. Among a healthy people, luxury is also healthy, an
+     essential element in the general health of the nation. Among
+     an unhealthy people luxury is a disease, and
+     disease-engendering.
+
+     For an impartial examination of the question, see
+     _Ferguson_, History of Civil Society, towards the end; see
+     also _Beckmann_, in _Justis'_ Grundsätzen der Polizei, 1782,
+     § 308; _Rau_, Ueber den Luxus, 1817; _Roscher_, Ueber den
+     Luxus, in the Archiv der Politischen Oekonomie, 1843, and in
+     his Ansichten der Volkswirthschaft, 1861, 399 ff.]
+
+
+SECTION CCXXV.
+
+THE HISTORY OF LUXURY.--IN THE MIDDLE AGES.
+
+During the middle ages, industry and commerce had made as yet but little
+progress. Hence it was as difficult then for luxury to be ministered to
+by fine furniture as by the products of foreign countries. Individual
+ornamental pieces, especially arms and drinking cups,[225-1] were wont
+to be the only articles of luxury. We have inventories of the domains of
+Charlemagne from which we find that in one of them, the only articles of
+linen owned were two bed-sheets, a table-cloth and a pocket
+handkerchief.[225-2] Fashion is here very constant; because clothing was
+comparatively dearer than at present. And so now in the East. In the
+matter of dwellings, too, more regard was had to size and durability,
+than to elegance and convenience. The palaces of Alfred the Great were
+so frailly built that the walls had to be covered with curtains as a
+protection against the wind, and the lights to be inclosed in
+lanterns.[225-3]
+
+Hence the disposition to use the products of the home soil as articles
+of luxury was all the greater, but more as to quantity than to
+quality.[225-4] Since the knight could personally neither eat nor drink
+a quantity beyond the capacity of his own stomach, he kept a numerous
+suite to consume his surplus. It is well known what a great part was
+played among the ancient Germans by their retinues of devoted servants
+(_comitatus_), which many modern writers have looked upon as
+constituting the real kernel of the migration of nations.
+
+In England, it was a maxim of state policy with Henry VII., whose reign
+there terminated the middle age, to prohibit the great liveried suites
+of the nobility (19 Henry VII., ch. 14) as Richard II., Henry IV. and
+Edward IV. had already attempted to do. But even under James I., we find
+ambassadors accompanied by a suite of 500 persons or 300
+noblemen.[225-5]
+
+The rich man welcomed every opportunity which enabled him to make others
+share in a dazzling manner the magnitude of his superfluous wealth:
+hence the numberless guests at weddings who were frequently entertained
+for weeks.[225-6] These festivities are memorable not because of the
+delicacies or great variety of the dishes, but because of their colossal
+magnitude. Even William of Orange, 1561, entertained at his wedding
+guests who had brought with them 5,647 horses; and he appeared himself
+with a suite of 1,100 men on horseback. There were consumed on the
+occasion 4,000 bushels of wheat, 8,000 of rye, 11,300 of oats, 3,600
+_eimers_ of wine, 1,600 barrels of beer.[225-7] In the ordinance of
+Münden regulating weddings, promulgated in the year 1610, it is
+provided, that, at a large wedding there should not be over 24 tables,
+nor at a small one over 14, with 10 persons at each table.[225-8]
+
+The hospitality of the lower stages of civilization[225-9] must be
+ascribed as well to this peculiar kind of luxury as to mere good nature.
+Arabian chiefs have their noon-day table set in the street and welcome
+every passer-by to it.[225-10] (_Pococke._) And so, distinguished
+Indians keep an open cauldron on the fire cooking all the time, from
+which every person who comes in may help himself. (_Catlin._)
+
+Compared with this luxury of the rich, the poverty found side by side
+with it appears less oppressive. There is no great gap between the modes
+of life of the different classes.[225-11] This is the golden age of
+aristocracy, when no one questions its legitimateness. When, later, the
+nobleman, instead of keeping so many servants, begins to buy costly
+garments for himself, he, indeed, supports indirectly just as many and
+even more men; but these owe him nothing. Besides, in this last kind of
+luxury, it is very easily possible for him to go beyond his means, which
+is scarcely ever the case in the former.[225-12]
+
+     [Footnote 225-1: Here, as a rule, the value of the metal was
+     greater than the form-value; and hence the medieval
+     monasteries frequently made loans of silver vessels, where
+     of course, the form could not be taken into consideration.
+     On the other hand, in the case of the table service,
+     presented by the king of Portugal to Lord Wellington, the
+     metal cost £85,000 and the workmanship £86,000. (_Jacob_,
+     Gesch. der edlen Metalle, translated by Kleinschrod, II, 5.)
+     Compare _Hume_, History of England, ch. 44, App. 3.
+     Similarly under Louis XIV. (_Sismondi_, Hist. des Français,
+     XXVII, 45.) When Rome was highly civilized, C. Gracchus paid
+     for very good silver ware, 15 times the value of the metal,
+     and L. Crassus, (consul 95 before Christ) 18 times its
+     value. _Mommsen_, R. Gesch. II, 383.]
+
+     [Footnote 225-2: _Specimen breviarii fiscalium Caroli
+     Magni_; compare _Anton_, Gesch. der deutschen Landwirthsch.
+     244 ff.]
+
+     [Footnote 225-3: _Turner_, History of the Anglo Saxons, VII,
+     ch. 6.]
+
+     [Footnote 225-4: In _Homer_, the kings live on nothing but
+     meat, bread and wine: compare _Athen._, I, 8. In the
+     saga-poetry of Iceland, _H. Leo_ does not remember to have
+     heard any other food mentioned except oat-pap, milk, butter
+     and cheese, fish, the flesh of domestic animals, and beer.
+     (_Raumer's_ Taschenbuch, 1835, 491)]
+
+     [Footnote 225-5: _Hume_, History of England, ch. 49, Append.
+     Similarly among all nations which have still preserved much
+     of the medieval. Thus the duke of Alba, about the end of the
+     last century, had not a single commodious hall in his
+     immense palace, but 400 rooms for his servants, since at
+     least all his old servants, and even their widows and
+     families, continued to live with him. In Madrid alone, he
+     paid £1,000 a month wages to his servants; and the son of
+     the duke, Medina-Celi, £4,000 per annum. (_Townsend_, II,
+     155, 158.) In many palaces in Moscow, previous to 1812,
+     there were 1,000 and more servants, unskillful, clad for the
+     most part as peasants, badly fed, and with so little to do
+     that perhaps one had no service to perform but to fetch
+     drinking water at noon, and another in the evening. Even
+     poor noblemen kept 20 and 30 servants, (_v. Haxthausen_,
+     Studien, I, 59.) _Forster_, Werke, VII, 347, explains Polish
+     luxury in servants, by the poorness of the servants there: a
+     good German maid could do more than three Polish servants.
+     Thus, in Jamaica, it was customary to exempt from the
+     slave-tax persons who kept fewer than 7 negroes. (_B.
+     Edwards_, History of the W. Indies, I, 229.) Compare _Livy_,
+     XXXIX, 11. The luxury of using torch-bearers instead of
+     candelabra lasted until Louis XIV.'s time. (_Rocquefort_,
+     Hist. de la Vie privée des Français, III, 171.) Compare _W.
+     Scott_, Legend of Montrose, ch. 4.]
+
+     [Footnote 225-6: A Hungarian magnate, under king Sigismund,
+     celebrated his son's wedding for a whole year. (_Fessler_,
+     Gesch. von Ungarn, IV, 1267.)]
+
+     [Footnote 225-7: _Müller_, Annal. Saxon, 68. Several
+     examples in _Sckweinichen's_ Leben von Büsching, I, 320 seq.
+     _Krünitz_, Enclycopædie, Bd. 82, 84 ff. The wedding of the
+     niece of Ottakar II. in 1264, has long been considered a
+     most brilliant event in the history of medieval luxury.
+     (_Palacky_, Gesch. von Böhmen, II, 191 ff.) Even yet, in
+     Abyssinia, on the occasion of royal feasts, only meat and
+     bread are eaten and mead drunk; but not only the great, but
+     even common soldiers are entertained one after the other.
+     (Ausland, 1846, No. 79.) Magnificent as was the table of a
+     West Indian planter, it was in some respects very simple. A
+     large ox was slaughtered for the feast, and everything had
+     to be prepared from that: roast beef, beef steaks, beef
+     pies, stews, etc. (_Pinckard_, Notes on the W. Indies, II.
+     100 ff.)]
+
+     [Footnote 225-8: _Spittler_, Geschichte Hanovers, I, 381.]
+
+     [Footnote 225-9: _Tacitus_, Germ., 21 Leg., says of the
+     Germans: _Convictibus et hospitiis non alia gens effusius
+     indulget. Quemcunque mortalium arcere tecto, nefas habetur.
+     Diem noctemque continuare potando, nulli probrum._]
+
+     [Footnote 225-10: Entirely the same among the ancient
+     Romans: _Valer. Max._, II, 5. Compare per _contra_,
+     _Euripid._, Herc. fur., 304 seq.]
+
+     [Footnote 225-11: Think of nomadic races especially, where
+     the rich can employ their wealth only to increase the number
+     of their partisans, for war purposes, etc.]
+
+     [Footnote 225-12: _Ferguson_, Hist. of Civil Society, VI, 3;
+     _Adam Smith_, Wealth of Nat., IV, ch. 4. Compare _Contzen_,
+     Politicorum, 1629, 662. As to how in the lower stages of
+     civilization, guests are used to supply the place of the
+     post-office service, see _Humboldt_, Relation hist., II,
+     61.]
+
+
+SECTION CCXXVI.
+
+LUXURY IN BARBAROUS TIMES.
+
+The luxury of that uncivilized age shows itself for the most part on
+particular occasions, and then all the more ostentatious, while in the
+periods following it, it rather permeates the whole of life. Even J.
+Möser excuses our forefathers for their mad celebration of their
+_kirmesses_ and carnivals: _dulce est desipere in loco_, as Horace says,
+and that they sometimes carried it to the extent of drowning
+reason.[226-1] Among ourselves, the common man drinks brandy every day;
+in Russia, seldom, but then, to the greatest excess.[226-2] The well
+known peculiarity of feudal castles, that, besides one enormous hall,
+they were wont to have very small and inconvenient rooms for every day
+life, is accounted for in part by the great importance to them of festal
+occasions, and in part by the cordiality of the life led in them, in
+which lord and servants constituted one family. Nothing can be more
+erroneous than to ascribe great temperance in general to people in a low
+stage of civilization. Their simplicity is a consequence of their
+ignorance rather than of their self-control. When nomadic races have
+once tasted the cup of more delicate enjoyment, it is wont to hurry them
+to destruction.[226-3]
+
+     [Footnote 226-1: _Möser_, Patr. Ph. IV, 7. On the feast of
+     fools and the feast of asses of the middle ages, compare
+     _Dutillet_, Mémoire pour sevir à l'Histoire de la Fête des
+     Fous; _D. Sacchi_, Delle Feste popolari del medio Evo.
+     During the latter half of the 16th century, the first
+     Hannoverian minister received only 200 thalers salary and
+     pieces of clothing, while the wedding of a certain von
+     Saldern cost 5,600 thalers. (_Spittler_, Gesch. Hannovers,
+     I, 333.)]
+
+     [Footnote 226-2: _v. Haxthausen_, Studien, II, 450, 513.
+     Thus, in 1631, of those who had died suddenly, there were
+     957 who died of drunkenness. (_Bernouilli_, Populationistik,
+     303.) According to _v. Lengefeldt_, Russland im 19. Jahrh.,
+     42, the number is now 1,474 to 1,911 per annum. On Poland,
+     see _Klebs_, Landeskulturgesetzgebung in Posen, 78. When the
+     South American Indians begin to drink, they do not stop
+     until they fall down senseless. (_Ulloa_, Noticias
+     Americanas, ch. 17.) The old Romans considered all
+     barbarians to be drunkards. (_Plato_, De Legg., I, 638.) In
+     eating, also, uncivilized people are extremely irregular. A
+     Jackute or Tunguse consumes 40 pounds of meat; three men
+     devour a whole reindeer at a meal. (_Cochrane_, Fussreise,
+     156.) One ate in 24 hours the back quarter of a large ox, or
+     ½ a _pud_ of fat, and drank an equal quantity of melted
+     butter. (_Klemm_, Kulturgeschichte, III, 18.) Similarly
+     among hunting races. See _Klemm_, I, 243, 339; II, 13, 255.
+     On the South Sea Islanders, see _Hawkesworth_, III, 505;
+     _Forster_, I, 255.]
+
+     [Footnote 226-3: Rapid degeneration of almost all barbaric
+     dynasties as soon as they have subjugated civilized
+     countries.]
+
+
+SECTION CCXXVII.
+
+INFLUENCE OF THE CHURCH AND OF THE CITY.
+
+The change in this situation takes place first of all in the churches
+and in the cities. The Church has passed through almost every stage of
+development in advance of the State; and civilization, both in the good
+and bad sense of the term, has become general, and gradually acclimated
+in the rural districts, through the influence of the cities. In the
+Church, the earliest art endeavored to reach the beautiful. There, we
+first find music, painting, sculpture, foreign perfumes, incense and
+variegated garments.[227-1] In the cities, growing industry introduces a
+more attractive style of clothing and a more ornamental style of
+household furniture. Commerce, beginning to thrive, raises foreign
+commodities into wants,[227-2] and thus the old luxury of feudal times
+is modified.[227-3] The large number of idle servants is diminished. All
+the more refined pleasures are extended downward to wider circles of the
+people. Instead of individual bards, rhapsodists, skalds and
+minnesingers, we have the beginnings of the theater, and instead of
+tournaments, the shooting matches. (_Freischiessen._)
+
+But it is remarkable how much earlier here pomp and splendor are
+considered than convenience. The Spanish _romanceros_ of the 12th
+century display wonderful splendor in their descriptions of the Cid, and
+the trousseau of his daughters. But, on the other hand, the wife of
+Charles VII. seems to have been the only French woman in the 15th
+century who had more than two linen chemises. Even in the 16th century,
+it frequently happened that a princess made a present to a prince of a
+single shirt. At this time the German middle class were wont to sleep
+naked.[227-4]
+
+Even now, half-civilized nations look more to the outward appearance of
+commodities than to their intrinsic value. Thus, for instance, in
+Russia, we find large numbers of porcelain services extravagantly
+painted and gilded, awkward, the material of which is full of blisters;
+damaskeened knives, gilt sad-irons and candle-snuffers with landscapes
+engraved on them: but nothing fits into anything else; the angles are
+vicious, the hinges lame, and the whole soon goes to pieces. And so,
+among export merchants in Bremen, for instance, it is a rule, on all
+their wares intended for America, to put a label made of very beautiful
+paper, with their coat-of-arms or firm-name in real silver, and to do
+the packing in as elegant a manner as possible.[227-5] Cloths intended
+for America are usually exceedingly light, destitute of solidity, but
+very well dressed. The cotton-printers who work for the African market
+prefer to employ false but cheap and dazzling colors.[227-6]
+
+     [Footnote 227-1: The use of window-glass in churches in
+     England dates from 674, in private houses from 1180.
+     (_Anderson_, Origin of Commerce, s. a.) Even in 1567, it was
+     so rare that during the absence of the lords from their
+     country seats, the panes were taken out and stored for safe
+     keeping. (_Eden_, State of the Poor, I, 77.) As to how
+     Scotland developed in this respect still later, see
+     _Buckle_, History of Civilization in England, II, 172.]
+
+     [Footnote 227-2: In our day, at the breakfast of a German of
+     the middle class, may be found East Indian coffee, Chinese
+     tea, West Indian sugar, English cheese, Spanish wine, and
+     Russian caviar, without any surprising degree of luxury.
+     Compare _Gellius_, N. A., VII, 16.]
+
+     [Footnote 227-3: In England, the transition is noticeable,
+     especially under Elizabeth: _Hume_ History, ch. 44, app. 3.
+     In France, under Louis XIV.; _Voltaire_, Siècle de Louis,
+     XIV., ch. 29.]
+
+     [Footnote 227-4: Poesias Castellanas anteriores al Siglo XV;
+     Tom. I, 347, 327. _Roscher_, loc. cit. _J. Voight_, in
+     _Raumer's_ historischem Taschenbuche, 1831, 290; 1835, 324,
+     seq. Thus, one of Henry VIII's wives, in order to get salad,
+     had first to send for a gardener from Flanders; while at the
+     time, a single ship imported into England from 3,000 to
+     4,000 pieces of clothing in gold brocade, satin or silk.
+     (_Anderson_, a. 1509, 1524, 4; Henry VIII, c. 6.)]
+
+     [Footnote 227-5: Irish linen, worth from 30 to 35 shillings,
+     is often provided with a label which cost 5 shillings.
+     (_Kotelmann_, Statistische Uebersicht der landwirthschaftl.
+     und industriellen Verhältnisse von Oestereich und dem
+     Zollverein, 215.)]
+
+     [Footnote 227-6: Compare _Kohl_, Reise in Deutschland, II,
+     18, 250. _Roscher_, in the Göttinger Studien, 1845, II, 403,
+     ff. About 1777, _Büsch_ described the difference of goods
+     manufactured in England "for the continent and home
+     consumption," as being just the same as the difference now
+     between goods for Africa and goods for Europe. (Darstellung
+     der Handlung, Zusatz, 89.)]
+
+
+SECTION CCXXVIII.
+
+HISTORY OF LUXURY IN HIGHLY CIVILIZED TIMES.
+
+The direction which luxury takes in times when civilization is advanced,
+is towards the real, healthy and tasteful enjoyment of life, rather than
+an inconvenient display. This tendency is exceedingly well expressed by
+the English word _comfort_, and it is in modern England that the luxury
+of the second period has found it happiest development. It is found side
+by side with frugality; and it frequently even looks like a return to
+the unaffected love of nature.[228-1]
+
+Thus, since Rousseau's time,[228-2] the so-called English gardens have
+dropped the former Versailles-Harlem style. Thus, too, modern fashion
+despises the awkward long wig, powdering etc.[228-3] Instead of garments
+embroidered, or faced with fur or lace, and instead of the galloon hat
+worn under Louis XIV. and Louis XV., the French revolution has
+introduced the simple citizen frock-coat and the round silk hat. The
+"exquisite" may even with these outshine others by the form he selects,
+the material he wears, or by frequent change, but much less strikingly
+than before.[228-4] Since every one, in the purchase of household
+furniture, etc., looks more to its use than to the honor of being sole
+possessor of an article or having something in advance of everybody
+else, it becomes possible for industry to manufacture its products in
+much larger quantities, and after the same model, and thus to furnish a
+much better article for the same price.[228-5] Besides, more recent
+industry has produced a multitude of cheap substitutes for costly
+objects of luxury: plated silver-leafing, cotton-velvet goods,
+etc.;[228-6] besides the many steel engravings, lithographs etc., which
+have exerted so beneficent an influence on æsthetic education.
+
+In the England of our days, the houses are comparatively small, but
+convenient and attractive, and the salutary luxury of spending the
+pleasant season in the country very general.[228-7] The country-roads
+are narrow but kept in excellent order and provided with good
+inns.[228-8] More value is here attached to fine linen cloth than to
+lace;[228-9] to a few but nourishing meat-dishes than to any number of
+sauces and confections of continental kitchens.[228-10] Especially is
+the luxury of cleanliness, with its morally and intellectually
+beneficial results found only in well-to-do and highly cultured nations.
+As formerly in Holland, so now in England, it is carried to the highest
+point of development. In the latter country, the tax on soap is
+considered a tax on an indispensable article.[228-11] The reverse is the
+case in North America, if we can believe the most unprejudiced and
+friendly observers.[228-12] The person who lives in a log-house must, to
+feel at ease within his four walls, first satisfy a number of necessary
+wants.[228-13]
+
+     [Footnote 228-1: The reformation of the sixteenth century
+     had a remarkable tendency towards natural and manful
+     fashions, as contradistinguished from the immediately
+     preceding and the immediately following periods. Compare _J.
+     Falke_, Deutsche Trachten und Modenwelt, II, 1858.]
+
+     [Footnote 228-2: _J. J. Rousseau_, N. Héloise, II, L. 11.
+     Compare _Keysler_, Reise, I, 695.]
+
+     [Footnote 228-3: That a similar transition marked an epoch
+     in the history of Grecian morals was recognized even by
+     _Thucydides_, I, 6; compare _Asios_, in _Athen._, XII, 528.]
+
+     [Footnote 228-4: It will always remain a want to own clothes
+     for every day wear and festal occasions. The frock coat
+     satisfies this want in the cheapest way. As soon as people
+     cease to distinguish clothing for festal occasions by the
+     cut, gold-embroidery, fur-facing, etc. will appear again,
+     which would necessarily prove a great hardship to the
+     propertyless classes of the educated, and even to the higher
+     classes.]
+
+     [Footnote 228-5: On the striking contrast presented in this
+     respect by the English and French, and even Russian customs,
+     see _Storch_, Handbuch, II, 179 ff. _J. B. Say_, Cours
+     pratique, translated into German by _Morstadt_, I, 435 ff.;
+     Deutsche Vierteljahrsschrift, 1853, I, 182.]
+
+     [Footnote 228-6: Paper-hangings, instead of costly gobelins
+     and leather hangings, were not known in France until after
+     1760, nor in the rest of Europe until much later. Busts of
+     plaster were (_Martial_, IX, 17, and _Juvenal_, II, 4) usual
+     among those who were less well off.]
+
+     [Footnote 228-7: Similarly even in _Giov. Villani_, XI, 93,
+     the villas of the highly cultured Florentines appear finer
+     than their city houses, while in Germany, at that time, even
+     the richest citizens lived only in the city.]
+
+     [Footnote 228-8: Sidewalks in the cities, recommended by _J.
+     J. Rousseau_, as a popular convenience and as a safeguard
+     against the carriage-aristocracy.]
+
+     [Footnote 228-9: In France, the luxury of lace was conquered
+     by Marie Antoinette, but still more effectually by the
+     Revolution. Previous to that time, many Parisians wore four
+     manchettes to each shirt. (_Palliser_, History of Lace,
+     1865.)]
+
+     [Footnote 228-10: During the middle ages, strongly seasoned
+     food, ragouts, etc., were more in favor than in even France
+     to-day; compare _Legrand d'Aussy et Roquefort_, Histoire de
+     la Vie priveé des Français, passim. The wine even, at that
+     time, used to be mixed with roots: _vin de romarin_,
+     _clairet_, _hippocras_, (_W. Wackernagel_, Kl. Schriften I,
+     86, 7.) The French kitchen became simpler and more natural,
+     only after the middle of the 18th century. (_Roquefort_,
+     III, 343.)]
+
+     [Footnote 228-11: The taxed consumption of soap amounted in
+     England in 1801 to 4.84 and in 1845, 9.65 pounds per capita.
+     (_Porter_, Progress of the Nation, V, 5, 579.) Soap-boiling
+     in London dates from 1520 only. Before that time, all white
+     soap was obtained from the continent. (_Howell_,
+     Londinopolis, 208.) _Erasmus_ charged that England, in his
+     time, was an exceedingly dirty country. The Italians, on the
+     other hand, were at that time greatly distinguished above
+     northern people, especially the Germans, by their
+     cleanliness. (_Buckhardt_, Kultur der Renaissance, 295.) The
+     Vienna river-baths after 1870, _Nicolai_, Reise, III, 17,
+     mentions as something deserving special note. The Leipzig
+     river-baths date from 1774.]
+
+     [Footnote 228-12: _Birkbeck_, Notes on America, 39. Even in
+     New York, it is not very long since there were no common
+     sewers. Just as characteristic is the uncleanliness of the
+     South African _boers_ (_Mauch_, in _Petermann's_
+     Mittheilungen, Ergänz-Heft, XXVII, 23), when compared with
+     the celebrated cleanliness of the old Dutch.
+
+     Americans will certainly not agree with the "friendly
+     and unprejudiced" observers mentioned in the text; for
+     no one acquainted with genuine American home-life can
+     deny that cleanliness is an American characteristic. It
+     is only justice to the author to say that the above
+     note (12), so far as it relates to America, appeared in
+     the second edition of his work, and probably in the
+     first; and that he is not so much to be blamed for it
+     as the unfriendly and prejudiced, if not ignorant
+     observers. It may be said, however, that, from the use
+     of the word "log-house," in the context, the author
+     does not intend to apply this remark to the older
+     settlements.--TRANSLATOR.]
+
+     [Footnote 228-13: The most frightful uncleanliness prevails
+     among the inhabitants of polar countries, who never bathe,
+     because of the climate, avoid all ventilation, and because
+     of the leathern clothing which they smear with grease, etc.
+     The Tunguses consider the after-birth cooked or roasted as a
+     great delicacy. "Fathers and mothers wipe their children's
+     noses with their mouth, and gulp the secretion down."
+     (_Georgi_, Beschreib. aller Nationen des russ. Reiches, I,
+     287.) Among the Koruks, the suitor rinses his mouth with his
+     sweetheart's water. (loc. cit., I, 349, 353.) Compare
+     _Klemm_, Kulturgeschichte, III, 24, 57. In warmer climates,
+     even less civilized nations are clean, for instance in the
+     East and South-Sea Islands, etc. All the more surprising is
+     the uncleanliness of the Hottentots and Bushmen, where the
+     natural color is observable only under the eyes, where the
+     tears produced by too much smoke has washed away the crust
+     of dirt which, with this exception, covers the whole body.
+     (_Klemm_, Kulturgeschichte, 333.) How long it takes for
+     cleanliness to become a national trait, may be inferred from
+     the history of water-closets, when, for instance, their
+     introduction into every house during the 16th and even the
+     17th century, had to be provided for by law in Paris.
+     (_Beckmann_, Beiträge, II, 358 ff.) The Göttingen statutes
+     of 1342 had to expressly prohibit persons to _merdare_ in
+     public wine-cellars where persons ate and drank together.
+     (_Spittler_, Gesch. Hannovers, I, 57.) Similarly in the
+     courts of the German princes. On the other hand,
+     universality of water-closets in England to-day.
+
+     In ancient times, too, the uncleanliness of the Spartans in
+     body and clothing was very surprising to the Athenians:
+     _Xenoph._, Resp. Laced., II, 4; _Plutarch_, Lycurg, 16.
+     _Just._, Lac., 5. Still more that of many barbarians, for
+     instance of the Illyrians: _Stobaeus_, V, 51, 132; _Gaisf.
+     Aelian._, V, H. IV, 1. The ancient Romans bathed only once a
+     week (_Seneca_, Epist., 86), while under the Empire, "the
+     baths embraced and filled up the whole life of man and all
+     his wishes." (_Gerlach._) Compare _Becker_, Gallus, II, 10
+     ff.; _Lamprid_, V, Comm., 11.]
+
+
+SECTION CCXXIX.
+
+EXTENT OF LUXURY IN HIGHLY CIVILIZED TIMES.
+
+The luxury of this second period fills the whole of life and permeates
+every class of people. Hence we may most easily determine the degree of
+development a people have attained by the quantity of commodities of a
+finer quality which are, indeed, not indispensable to life, but which it
+is desirable should be consumed on as extensive a scale as possible by
+the nation, for the sake of the fullness of life and the
+freshness[229-1] of life to which they minister.
+
+Thus, for instance, as civilization has advanced, there has been almost
+everywhere a transition to a finer quality of the material of which
+bread is made. The number of consumers of white bread in France in 1700,
+was 33 per cent. of the population; in 1760, 40; in 1764, 39; in 1791,
+37; in 1811, 42; in 1818, 45; in 1839, 60 per cent.[229-2] About 1758,
+in England and Wales, 3,750,000 of people lived on wheat bread; on
+barley bread, 739,000; on rye bread, 888,000; on oat bread, 623,000. The
+cultured southeastern population had almost nothing but wheat bread,
+while in the north and northwest, oat bread continued to be used a long
+time; and in Wales only 10 per cent. of the population ate wheat bread.
+This condition of things in England has since been much improved. But,
+at the extremities of the Hebrides, nine-tenths of the population still
+live on barley bread; and in Ireland it was estimated, in 1838, that
+with 8,000,000 inhabitants, potatoes were the chief article of food of
+5,000,000, and oat bread of 2,500,000.[229-3]
+
+And so, the consumption of meat in cities is uniformly much larger than
+in the country. In the cities of the Prussian monarchy and subject to
+the slaughter-house tax, it amounted in 1846, per capita: in East
+Prussia, to 61 lbs.; in Pommerania, to 66; in Posen, to 70; in West
+Prussia, to 71; in Saxony, to 75; in the Rhine Province, to 83; in
+Silesia, to 86; in Brandenburg, to nearly 104; in Berlin alone, to 114:
+an average in the whole country, however, of scarcely 40 lbs. per
+capita. (_Dietrici._) In the kingdom of Saxony, the average consumption
+of beef and pork was, shortly before 1866, about 50 lbs.; in Dresden
+alone, 86.7; in Leipzig, 136.9 lbs.[229-4] The consumption of meat in
+England is exceedingly great, so that, for instance, in several orphan
+asylums in London, the daily meat ration amounts to an average of from
+0.23 to 0.438 lbs. The meat-consumption of a well-to-do family, children
+and servants included, Porter estimates at 370 lbs. per capita per
+annum. The meat ration of soldiers in the field amounts in England to
+676 grammes a day; in France, to 350.[229-5]
+
+The consumption of sugar in 1734, in England, was about 10 lbs. per
+capita; in 1845, in the whole of the British Empire, 20-1/3 lbs.; in
+1849, almost 25 lbs.; in 1865, over 34 lbs.; but it must not be
+overlooked here, that in Ireland the consumption of sugar per capita was
+scarcely over 8 lbs.[229-6] In the German Zollverein, the consumption of
+sugar, in 1834, amounted to an average of 2½ lbs. per capita; in
+1865, to more than 9 lbs. In France, the consumption of the same article
+rose from 1.33 kilogrammes, the average from 1817 to 1821, to 7.35 lbs.
+in 1865.[229-7] The population of the Zollverein rose 25.8 per cent.
+between 1834 and 1847, while the importation of coffee increased 117.5
+per cent.; of spices, 58.2; southern fruits, 34.5, and cocoa, 246.2 per
+cent.[229-8]
+
+A great many of vegetables and fruits, which seem to us to be almost
+indispensable articles of subsistence, have been cultivated only a short
+time. Thus the English have been acquainted with artichokes, asparagus,
+several kinds of beans, salad, etc. only since 1660.[229-9] Even in
+France, the finer kinds of fruits have appeared on the tables of the
+middle class only since the beginning of the last century.
+
+The per capita consumption of wool in England, about a generation ago,
+amounted to about 4 lbs. a year; in Prussia to 1.67; of cloth, to 5.76
+and 2.17 ells; of leather, to 3.03 and 2.22 lbs. respectively.[229-10]
+Of silk goods, England consumes half as much as the rest of all Europe,
+and an Englishman from 5 to 6 times as much as a Frenchman, although
+England does not produce a single pound of raw silk.[229-11]
+
+     [Footnote 229-1: Thus, for instance, the modern enjoyments
+     of coffee, tea, newspapers, tobacco etc., promote
+     domesticity with which antiquity was so little acquainted.
+     _Zaccharia_, Vierzig Bücher, VI, 60.]
+
+     [Footnote 229-2: The food of the French people has improved
+     also in point of quantity. At the beginning of the
+     eighteenth century, of cereals there were 472 liters per
+     capita, at present there are 541 liters; and in addition,
+     now, 240 liters of potatoes and vegetables more than then.
+     Compare _Moreau de Joannès_, Statistique de l'Agriculture de
+     la France, 1848, and the same writer's Statistique céréale
+     de la France, in the Journal des Economistes, 1842, Janv. On
+     the recent decrease or increase in the consumption of meat,
+     see the very different estimates of _M. Chevalier_, Cours.,
+     I, 113 seq., and Journal des Economistes, Mars, 1856, 438
+     ff.]
+
+     [Footnote 229-3: _Ch. Smith_, Tracts on the Corn Trade,
+     1758, 182. _Eden_, State of the Poor, I, 563, seq. In
+     _McCulloch_, Statist, I, 316, 466 ff., 548. Moreover,
+     _Rogers_ says that English workmen in the middle ages, for
+     the most part, consumed wheat bread. (Statist. Journal,
+     1864, 73.) About the middle of the 13th century, only from
+     11 to 12 _malters_ of wheat were produced on the estates of
+     the bishop of Osnabrück; about 470 of oats, 300 of rye, and
+     120 of barley. (_J. Möser_, Osnabrück, Gesch., Werke, VII,
+     2. 166.) Even beer was brewed from oats in the earlier part
+     of the middle ages. (_Guérard_, Polyptiques, I, 710 ff.) The
+     ancients, also, in their lower stages of civilization, lived
+     on barley bread by way of preference, and went over to wheat
+     only at a later period; compare _Plin._, H. N. XVIII, 14.
+     _Heracl._, Pont, fr. 2. _Athen._, IV., 137, 141. _Plutarch_,
+     Alcib., 23. As to how, in Rome, the transition from _far_ to
+     the much more costly _triticum_, was connected with the
+     extension of the hide of land from 2 to 7 _jugera_, see _M.
+     Voigt_ in the Rhein. Museum f. Philol., 1868.]
+
+     [Footnote 229-4: To this, in Saxony, must be added about
+     from 6 to 7 pounds of veal and mutton. The recent increase
+     in the consumption of meat in Saxony is very encouraging:
+     1840, about 30 lbs. of beef and pork per capita; 1851-57, 40
+     lbs. (Sächs. Statist. Ztschr., 1867, 143 seq.) On the other
+     hand, _Schmoller_ estimated the consumption of meat in
+     general in Prussia, in 1802, at 33.8; in 1816, at 22.5; in
+     1840, at 34.6; in 1867, at 34.9 lbs. (_Fühling_, N. Landw.
+     Zeitg., XIX; Jahrg. Heft., 9 seq.) Paris consumed, in 1850,
+     145 pounds of butcher's meat per capita; in 1869, 194
+     pounds. In the year of the revolution, 1848, the consumption
+     declined 45 per cent.; the consumption of wine in barrels,
+     16 per cent.; in bottles, 44 per cent.; of sea-fish, 25 per
+     cent.; of oysters, 24 per cent.; of beer, 20 per cent.; of
+     eggs, 19 per cent.; of butter, 13 per cent.; of fowl, 6 per
+     cent. (_Cl. Juglar_, in the Journal des Economistes, March,
+     1870.)]
+
+     [Footnote 229-5: _Porter_, Progress of the Nation, V, 5, 591
+     ff.; _Hildesheim_, Normaldiet, 52 ff. Well-known English
+     popular song: "Oh, the roast beef of old England" etc. Even
+     at the end of the 17th century one-half of the nation
+     partook of fresh meat scarcely once or twice a week; most of
+     that consumed was salted. (_Macaulay_, History of England,
+     ch. 3.) But even _Boisguillebert_, Traité des Grains, II, 7,
+     characterizes the English as great beer-drinkers and
+     meat-eaters, from the highest class to the lowest, while the
+     French consumed almost nothing but bread. Similarly _J. J.
+     Becher_, Physiologie, 1678, 202, 248, on the great
+     consumption of meat and sugar in England.]
+
+     [Footnote 229-6: _Anderson_, Origin of Commerce, a. 1743;
+     _Porter_, Progress, V, 4, 350 ff.; Meidinger, 154 ff.;
+     Memorandum respecting British Commerce, etc., before and
+     since the Adoption of Free Trade, 1866. On men-of-war each
+     man gets 35-45 lbs. a year; in the poorhouse, old men
+     22¾. (_Porter._)]
+
+     [Footnote 229-7: In Henry IV.'s time, in France, sugar was
+     sold by the apothecaries by the ounce!]
+
+     [Footnote 229-8: _Deiterici_, Statist. Uebersicht des
+     Verkehrs, etc. im Zollvereine, 4; Fortsetzung, 168 ff., 208,
+     265, 599. Thus, in Great Britain, the population between
+     1816 and 1828 grew, from 13½ million to nearly 16
+     million. On the other hand, consumption, when the average
+     from 1816 to 1819 is compared with that from 1824 to 1828,
+     increased in a much greater proportion: soap, from 67¾ to
+     100 million pounds; coffee, from 7,850,000 to 12,540,000
+     pounds; starch, from 3-1/5 to 6-1/3 million pounds. (Quart.
+     Rev., Nov., 1829, 518.) The consumption of tea per capita in
+     1801 was 1.5 lbs., in 1871, 3.93 lbs. (Statist. Journ.,
+     1872, 243.) In the matter of illumination, a very beneficent
+     luxury has been obtained, inasmuch as, spite of the fact
+     that gas-light is so generally used in recent times, i. e.,
+     since 1804, the consumption of oil has very much increased,
+     on account of the lamps now so much in favor; and that of
+     candles also has increased, relatively speaking, more
+     rapidly than the population. The illumination produced is
+     much richer now than formerly, a fact which, besides its
+     sanitary advantages, has had a good influence in diminishing
+     street robberies. (_Julius_, Gefängnisskunde, XXII.) During
+     the middle ages, candles were very dear; according to
+     _Rogers_ (I, 415) 1-1/3 to 2 shillings per pound.]
+
+     [Footnote 229-9: Present state of England, 1683, III, 529;
+     compare _Storch_, Handbuch, II, 337 seq.]
+
+     [Footnote 229-10: _Dieterici_, Statist. Uebersicht, 321 ff.,
+     363, 399.]
+
+     [Footnote 229-11: _Bernouilli_, Technologie, II, 223. It is
+     a striking symptom of the wealth or ostentation of the later
+     period of the Empire that, according to _Ammian. Marcell_,
+     (XXIII, 258-ed. Paris, 1636) silk goods were a want even
+     among the lower classes, notwithstanding the fact that they
+     had to be imported from China.]
+
+
+SECTION CCXXX.
+
+EQUALIZING TENDENCY OF LATER LUXURY.
+
+The whole social character of this luxury has something
+equalizing[230-1] in it; but it supposes particularly that there is not
+too marked a difference in the resources of the people.
+
+A proper gradation of national wants is best guarantied by a good
+distribution of the national resources.[230-2] The more unequal the
+latter is, the more is there spent on vain wants instead of on real
+ones; and the more numerous are the instances of rapid and even immoral
+consumption. Where there are only a few over-rich men, more foreign
+products and products of capital are wont to be called for than home
+products and productions of labor; and luxury especially despises all
+those commodities manufactured in large institutions.[230-3] Every
+change in the consumption-customs of a people, in this respect, should
+be most carefully observed; thus, for instance, whether brandy is
+exchanged for beer, tobacco for meat, cotton for cloth, or the
+reverse.[230-4]
+
+One of the characteristics of this period is the endeavor to possess the
+best quality of whatever is possessed at all, and to be satisfied with
+less of it rather than purchase more of an inferior quality. This is,
+essentially, to practice frugality, inasmuch as certain
+production-services remain the same whether the commodity is of the best
+or the worst quality, and that commodities of the best quality are more
+superior to the worst in intrinsic goodness than they are in price. But
+this course supposes a certain well-being already existing.
+
+In this period, also, the luxury of the state is wont to take the
+direction of those enjoyments which are accessible to all.[230-5]
+
+     [Footnote 230-1: Formerly the dress of citizens was a weak
+     imitation of the court costume: at present the reverse is
+     the case, and the court costume is only a heightening of the
+     citizen costume. Compare _Riehl_, Bürgerl. Gesellschaft,
+     191.]
+
+     [Footnote 230-2: _Helvetius_, De l'Homme, 1771. sec. VI, ch.
+     5.]
+
+     [Footnote 230-3: _J. B. Say_, Traité, II, 4; _Sismondi_, N.
+     P., IV, ch. 4. As early a writer as _Lauderdale_, Inquiry,
+     358 ff., thought the social leveling of modern times would
+     promote English industry. In the East Indies, on the other
+     hand, only the most expensive watches, rifles, candelabras
+     etc. were sold, because the nabobs were the only persons who
+     created any demand for European commodities (312 ff.). _Adam
+     Smith_, Wealth of Nat., II, ch. 3, draws a very correct
+     distinction between the luxury of durable goods and that of
+     those which perish rapidly; the former is less calculated to
+     impoverish an individual or a whole nation; and hence it is
+     much more closely allied to frugality. Similarly even
+     _Isocrates_, ad Niccol., 19; _Livy_, XXIV, 7; _Plin._, H.
+     N., XIII, 4; _Mariana_, 1598, De Rege et Regis Institutione,
+     III, 10; _Sir W. Temple_, Works, I, 140 seq., who found this
+     better kind of luxury in Holland: _Berkeley_, Querist, No.
+     296 ff.]
+
+     [Footnote 230-4: _Schmoller_, loc. cit., considers it no
+     favorable symptom, that in Prussia, between 1802 and 1867,
+     the per capita consumption of milk decreased and that of
+     wool increased. According to _L. Levi_, the consumption of
+     brandy in England decreased from 1854 and 1870, from 1.13 to
+     1.01 gallons per capita; but, on the other hand, the
+     consumption of malt increased from 1.45 to 1.84 bushels, and
+     the consumption of wine from 0.23 to 0.45 gallons. The
+     number of licenses to retail spirituous liquors was, in
+     1830, 6.30 per thousand of the population; in 1860-69, only
+     5.57. (Statist. Journal, 1872, 32 ff.)]
+
+     [Footnote 230-5: Compare _Cicero_, pro Murena, 36. The
+     Athenians under Pericles, in times of peace, spent more than
+     one-third of their state-income on plastic and architectural
+     works of art. The annual state-income amounted to 1,000
+     talents (_Xenoph._, Exp. Cyri, VII, 1, 27), while the
+     propylea alone cost, within 5 years, 2,012 talents.
+     (_Böckh_, Staatsh., I, 283.) On the other hand,
+     _Demosthenes_ complains of the shabbiness of public
+     buildings, and the magnificence of private ones in his time.
+     (adv. Aristocr., 689, Syntax., 174 seq.)
+
+     _Demetrius Phalereus_ blames even Pericles, on account of
+     his extravagance on the propylea, although Lycurgus had
+     been, not long before, addicted to luxury after the manner
+     of Pericles. (_Cicero_, De Off., II, 17.)]
+
+
+SECTION CCXXXI.
+
+THE ADVANTAGES OF LUXURY.
+
+The favorable results which many writers ascribe to luxury in general
+are true evidently only of this period. And thus luxury, inasmuch as it
+is a spur to emulation, promotes production in general; just as the
+awarding of prizes in a school, although they can be carried away only
+by a few, excites the activity of all its attendants. A nation which
+begins to consume sugar will, as a rule, unless it surrenders some
+previous enjoyment, increase its production.[231-1] In countries where
+there is little or no legal security, in which, therefore, people must
+keep shy of making public the good condition they are in, this
+praise-worthy side of luxury is for the most part wanting.[231-2]
+
+All rational luxury constitutes a species of reserve fund for a future
+day of need. This is especially true of these luxuries which take the
+form of capital in use (_Nutzkapitalien_.) Where it is customary for
+every peasant girl to wear a gold head-dress,[231-3] and every
+apprentice a medal, a penny for a rainy day is always laid by among the
+lower classes. The luxury which is rapidly consumed has a tendency in
+the same direction. Where the majority of the population live on
+potatoes, as in Ireland, where, therefore, they are reduced to the
+smallest allowance of the means of subsistence, there is no refuge in
+case of a bad harvest. A people on the other hand, who live on wheat
+bread may go over to rye bread, and a people who live on rye bread to
+potatoes. The corn that in good years is consumed in the making of
+brandy may, in bad years, be baked into bread.[231-4] And the oats
+consumed by horses kept as luxuries may serve as food for man.
+Pleasure-gardens (_Lustgärten_) may be considered as a kind of last
+resort for a whole people in case of want of land.[231-5] [231-6]
+
+     [Footnote 231-1: Compare _Benjamin Franklin's_ charming
+     story, Works I, 134 ff.; ed. Robinson. _Colbert_ recommended
+     luxury chiefly on account of its service to production.]
+
+     [Footnote 231-2: Turkish magnates who keep several
+     magnificent equipages ride to the sultan's in a very bad
+     one. Risa Pascha, when at the height of his power, had his
+     house near a villa of the sultan painted in the plainest and
+     most unsightly manner possible. The walls of a park in
+     Constantinople painted half in red and half in blue, to give
+     it the appearance of being two _gardens_. (Alg. Zeitung, 16
+     Juli, 1849.) In Saxony, between 1847 and 1850, the number of
+     luxury horses diminished from 6.11 to 5.64 per cent. of the
+     total number of horses in the kingdom. (_Engel_, Jahrbuch,
+     I, 305.) In the same country there were coined in 1848 over
+     64,000 silver marks, derived from other sources than the
+     mines. (_Engel_, Statis. Zeitschr. I, 85.) In England, on
+     the other hand, the number of four-wheeled carriages
+     increased more than 60 per cent. between 1821 and 1841,
+     while the population increased only 30 per cent. (_Porter_,
+     Progress, V, 3, 540.)]
+
+     [Footnote 231-3: Such a head-dress may very easily be worth
+     300 guldens in Friesland. Gold crosses worn by the peasant
+     women about Paris. (_Turgot_, Lettre sur la Liberté du
+     Commerce des Grains.)]
+
+     [Footnote 231-4: So far it is of some significance, that
+     nearly all not uncivilized nations use their principal
+     article of food to prepare drinks that are luxuries. Thus,
+     the Indians use rice, the Mexicans mais, the Africans the
+     ignam-root. It is said that in ancient Egypt, beer-brewing
+     was introduced by Osiris. (_Diodor._, I, 34.) Compare
+     _Jeremy Bentham_, Traité de Législation, I, 160. _Malthus_,
+     Principle of Population, I, ch. 12; IV, ch. 11.]
+
+     [Footnote 231-5: While in thinly populated North America,
+     space permits the beautiful luxury in cemeteries of
+     ornamenting surroundings of each grave separately (_Gr.
+     Görtz_, Reise, 24), the Chinese garden-style seeks to effect
+     a saving in every respect. In keeping with this is the fact
+     that animal food has there been almost abolished. Compare,
+     besides, _Verri_, Meditazioni, XXVI, 3.]
+
+     [Footnote 231-6: _Garve_ thinks that luxury, when it takes
+     the direction of a great many trifles, little conveniences,
+     etc., has the effect of distracting the people. Here there
+     are few men of towering ambition or of inextinguishable
+     revenge, but at the same time, few entirely unselfish and
+     incorruptible patriots. (_Versuche_, I, 232.)]
+
+
+SECTION CCXXXII.
+
+LUXURY IN DECLINING NATIONS.
+
+In declining nations, luxury assumes an imprudent and immoral character.
+Enormous sums are expended for insignificant enjoyments. It may even be
+said that costly consumption is carried on there for its own sake. The
+beautiful and the true enjoyment of life makes place for the monstrous
+and the effeminate.
+
+Rome, in the earlier part of the empire, affords us an example of such
+luxury on the most extensive scale.[232-1] Nero paid three hundred
+talents for a murrhine vase. The two acres (_Morgen_) of land which
+sufficed to the ancient citizens for a farm (_Acker_) were not now
+enough to make a fish-pond for imperial slaves. The sums carried by the
+exiles with them, to cover their traveling expenses and to live on for a
+time, were now greater than the fortunes of the most distinguished
+citizens had been in former times.[232-2] There was such a struggle
+among the people to surpass one another in procuring the freshest
+sea-fish that, at last, they would taste only such as they had seen
+alive on the table. We have the most exalted descriptions of the
+beautiful changes of color undergone by the dying fish; and a special
+infusion was invented to enable the epicure better to enjoy the
+spectacle.[232-3] Of the transparent garments of his time, Seneca says
+that they neither protected the body nor covered the nakedness of
+nature. People kept herds of sheep dyed in purple, although their
+natural white must have been much more agreeable to any one with an eye
+for the tasteful.[232-4] Not only on the roofs of houses were fish-ponds
+to be seen, but gardens even hanging on towers, and which must have been
+as small, ugly and inconvenient as they were costly.[232-5] Especially
+characteristic of the time was the custom of dissolving pearls in wine,
+not to make it more palatable, but more expensive.[232-6] The emperor
+Caligula, from simple caprice, caused mountains to be built up and cut
+away: _nihil tam efficere concupiscebat, quam, quod posse effici
+negaretur_.[232-7] This is the real maxim of the third period of luxury!
+People changed their dress at table, inconvenient as it was to do so,
+occasionally as often as eleven times. Perfumes were mixed with the wine
+that was drunk, much as it spoiled its taste, only that the drinkers
+might emit sweet odors from every pore. There were many so used to being
+waited on by slaves that they required to be reminded by them at what
+times they should eat and when they should sleep. It is related of one
+who affected superiority over others in this respect, that he was
+carried from his bath and placed on a cushion, when he asked his
+attendant: "Am I sitting down now?"[232-8] It is no wonder, indeed, that
+an Apicius should reach out for the poisoned cup when his fortune had
+dwindled to only _centies sestertium_, _i. e._, to more than half a
+million thalers.[232-9]
+
+In this last period, the coarse debauchery of the earlier periods is
+added to the refined. Swarms of servants, retinues of gladiators who
+might be even politically dangerous,[232-10] monster banquets, at which
+Cæsar, for instance, entertained the whole Roman people, colossal
+palaces such as Nero's _aurea domus_, which constituted a real city;
+annoying ostentation in dress[232-11] again becomes the order of the
+day. The more despotic a state becomes, the more is the craving for
+momentary enjoyment wont to grow; and for the same reason that great
+plagues diminish frugality and morality.[232-12]
+
+     [Footnote 232-1: _Meierotto_, Sitten und Lebensart des
+     Römer, II, 1776; _Boettiger_, Sabina, II, 1803;
+     _Friedländer_, Darstellungen aus der Sittengeschichte Roms,
+     Bd. III, 1868; which latter work has been written with the
+     aid of all that modern science can afford.]
+
+     [Footnote 232-2: _Plin._, H. N., XXXVII, 7; XVIII, 2;
+     _Seneca_, Quaest. Natur., I, 17; Consol. ad. Helviam, 12.]
+
+     [Footnote 232-3: _Seneca_, Quaest. Natur., III, 18; _Plin._,
+     H. N., IX, 30.]
+
+     [Footnote 232-4: _Seneca_, De Benef., VII, 9; _Plin._, N.
+     N., VIII, 74.]
+
+     [Footnote 232-5: _Valer. Max._, IX, 1; _Seneca_, Epist, 122.
+     Thus Hortensius sprinkled his trees with wine. _Macrob._,
+     Sat., III, 13.]
+
+     [Footnote 232-6: Besides Cleopatra, Caligula especially did
+     this frequently. Compare also _Horat._, Serm., II, 3, 239
+     ff. Similarly, the luxury of the actor Aesopus, when he
+     placed a dish worth 6,000 _louis d'or_ before his guests,
+     consisting entirely of birds which had been taught to sing
+     or speak. _Pliny_, H. N., X, 72. Compare _Horat._, loc.
+     cit., 345.]
+
+     [Footnote 232-7: _Sueton._., Caligula, 37. _Hoc est luxuriae
+     propositum, gaudere perversis. Seneca_., Epist., 122.
+     According to the same letter of Seneca, the luxury of Nero's
+     time had its source rather in vanity than in sensuality and
+     gluttony.]
+
+     [Footnote 232-8: _Martial_, V, 79; _Plin_., H. N. XIII, 5.
+     _Seneca_, De Brev. Vitæ. I, 12.]
+
+     [Footnote 232-9: _Seneca_, Cons. ad Helviam 10, _Martial_,
+     III, 22.]
+
+     [Footnote 232-10: Hence, early limited by law. _Sueton._.
+     Caes. 10. Augustus limited the exiles to taking 20 slaves
+     with them: _Dio Cass._ VII, 27. Special value attached to
+     dwarfs, buffoons, hermaphrodites, eunuchs, precisely as
+     among the moderns in the times of the degenerated absolutist
+     courts, the luxury of which is closely allied in many
+     respects to that of declining nations.]
+
+     [Footnote 232-11: Caligula's wife wore, on ordinary
+     occasions, 40,000,000 sesterces worth of ornaments. _Plin._
+     H. N. IX, 58.]
+
+     [Footnote 232-12: _Gibbon_, History of the Decline and Fall
+     of the Roman Empire, ch. 27. What a parallel between this
+     later Roman luxury and the literary taste represented for
+     instance by Seneca!
+
+     Let any one who would embrace the three periods of luxury in
+     one view, compare the funeral ceremonies of the Greek age of
+     chivalry (_Homer_, Il.), with those in _Thucyd._ (II, 34,
+     ff.), _Demosth._ (Lept., 499 seq.), and the interment of
+     Alexander the Great and, of his friend Hephaestion
+     (_Diodor._, XVII, 115, XVIII, 26 ff.) Sullas (Serv. ad
+     _Virgil_, Æneid VI, 861. _Plutarch_, Sulla, 38), and that of
+     the wife of the emperor Nero (_Plin._, H. N. XII, 41).
+     _Roscher_, loc. cit. 66 ff.]
+
+
+SECTION CCXXXIII.
+
+LUXURY-POLICY.
+
+Sumptuary laws (_die Luxusgesetzgebung_) have been aimed, at all times,
+principally at the outlay for clothing, for the table and for
+funerals.[233-1] In most nations the policy of luxury has its beginning
+in the transition from the first to the second period of luxury above
+described.[233-2] The extravagant feasts, which remain of the first
+period, seem vulgar to the new public opinion which is created. On the
+other hand, the conveniences of life, the universality, the refinement
+and variety of enjoyments characteristic of the second period are not
+acceptable to the austerity of old men, and are put down as effeminacy.
+In this period the bourgeoisie generally begin to rise in importance,
+and the feudal aristocracy to decay. The higher classes see the lower
+approximate to them in display, with jealous eyes. And, hence, dress is
+wont to be graded in strict accordance with the differences of
+class.[233-3] But these laws must be regarded as emanating from the
+tendency, which prevails in these times, of the state to act as the
+guardian of its wards, its subjects. The authority of the state waxes
+strong in such periods; and with the first consciousness of its power,
+it seeks to draw many things into its sphere, which it afterwards
+surrenders.
+
+     [Footnote 233-1: Which of these three kinds of luxury
+     specially preponderated has always depended on the
+     peculiarities of national character. Thus, among the ancient
+     Romans, it was the second; among the French, the first. In
+     Germany the prohibitions relating to "toasts," or drinking
+     one another's health have played a great part. Thus the
+     well-known Cologne reformation of 1837. Compare _Seb.
+     Münster_, Cosmogr., 326.]
+
+     [Footnote 233-2: In Greece, _Lycurgus'_ legislation seems to
+     have contained the first prohibition relating to luxury. No
+     one should own a house or household article which had been
+     made with a finer implement than an ax or a saw; and no
+     Spartan cook should use any other spice than salt and
+     vinegar. (_Plut._, De Sanitate, 12; _Lycurg._, 13. On
+     Periander, see _Ephorus_, ed. _Marx_, fr. 106. _Heracb._,
+     Pont. ed.; _Köhler_, fr. 5; _Diog. Laert._, I, 96 ff.) The
+     luxury-prohibitions of Solon were aimed especially at the
+     female passion for dress and the pomp of funerals. Those who
+     had the surveillance of the sex watched also over the luxury
+     of banquets. _Athen._, VI, 245; _Demosth._ in _Macart._,
+     1070. In Rome, there were laws regulating the pomp of and
+     display at funerals, dating from the time of the Kings; but
+     especially are such laws to be found in the twelve tables.
+     Lex Oppia de Cultu Mulierum in the year 215 before Christ. A
+     very interesting debate concerning the abolition of this law
+     in _Livy_, XXXIV, 1 ff. About 189, prohibition of several
+     foreign articles of luxury. _Plin._, H. N., XIII, 5, XIV,
+     16. Measures of Cato the censor. (_Livy_, XXXIX, 44.) First
+     law relating to the table, L. Orchia, in the year 187;
+     afterwards L. Fannia, 161, L. Didia, 143 before Christ.
+     (_Macrob._, Sat. V, 13; _Gellius_, N. A., II, 24. _Plin._,
+     H. N., X, 7.) After a long pause, sumptuary laws relating to
+     food, funerals and games of chance, constitute an important
+     part of Sulla's legislation.]
+
+     [Footnote 233-3: _Latus clavus_ of the Roman senators;
+     _annulus_ of the knights. In the latter middle age, the
+     knights were wont to be allowed to wear gold, and esquires
+     only silver; the former, damask; the latter, satin or
+     taffeta; but when the esquires also used damask, velvet was
+     reserved for the knights alone. _St. Palaye_, Das
+     Ritterwesen, by _Klüber_, IV, 107; II, 153 seq. But towards
+     the end of the middle ages many sumptuary laws were enacted
+     in cities by plebeian jealousy of the rich. The Venetian
+     sumptuary laws were passed on account of the anxiety of the
+     state that some rich men might shine above the rest of the
+     oligarchs.]
+
+
+SECTION CCXXXIV.
+
+HISTORY OF SUMPTUARY LAWS.
+
+As in Italy, Frederick II., in Aragon, Iago I., in 1234, in England,
+Edward III., by 37, Edward III., c. 8 ff., so in France Philip IV. was
+the first who busied himself seriously with sumptuary
+legislation;[234-1] that is the same king who had introduced in so many
+things the modern political life into France. (For instance, the
+ordinance of 1294, regulating apparel and the luxury of the table.) In
+the 14th century, we find sumptuary laws directed mainly against expense
+for furs, and in the 16th mainly against that for articles of gold and
+silver. From the descriptions left us in such laws of the prohibited
+luxuries, we may learn as much of the history of technology and of
+fashion, as we may of the history of classes from the gradation of the
+things permitted. The fines imposed for violations of these laws, under
+Philip IV. went for the most part to the territorial lord; and in the
+16th and 17th centuries to the foundation of charitable institutions.
+The state, as a rule, took no share of them; doubtless to avoid the
+odium which might attach to this kind of revenue.
+
+Beginning with the end of the 16th century, the sumptuary laws of France
+relating to the luxuries permitted to the several classes of the people
+disappear. The legislator ceases to be guided by moral considerations
+and begins to be influenced by reasons partaking of a commercial and
+police character; and here we may very clearly demonstrate the origin of
+the so-called mercantile or protective system. Thus, in the declaration
+of Louis XIV. dated December 12, 1644, we find a complaint, that not
+only does the importation of foreign articles of luxury threaten to rob
+France of all its gold and silver, but also that the home manufacture of
+gold cloth, etc., which at Lyons alone ate up 10,000 livres a week, had
+the same effect. Under Colbert, in 1672, it was specially provided for,
+in the prohibition of coarser silver ware, that all such ware should be
+brought to the mint.[234-2] In the edict of 1660, the king even says
+that he has in view especially the higher classes, officers, courtiers,
+etc., in whom it was his duty to be most deeply interested. To preserve
+the latter from impoverishment was the main object of the law.
+
+Under Louis XV. all sumptuary laws were practically a dead
+letter.[234-3] Their enforcement is, indeed, exceedingly difficult, as
+it is always harder to superintend consumption than production. The
+latter is carried on in definite localities, not unfrequently even in
+the open air. The former is carried on in the secrecy of a thousand
+homes. Besides, sumptuary laws have very often the effect to make the
+forbidden fruit all the sweeter. Where they are based on a difference of
+class, not only the passion for pleasure, but the vanity of the lower
+classes is an incentive to their violation.[234-4] Spite of the severity
+of the penalties attached to the violation of these laws, of redoubled
+measures of control, which are dreadful burdens on the intercourse
+between man and man,[234-5] the French government has been compelled to
+admit, after almost every internal commotion, and almost every external
+war, that its sumptuary laws fell into disuse.
+
+     [Footnote 234-1: Ordonnances de France, I, 324, 531. Worms
+     law of 1220. (_Riehl_, Pfälzer, 246.) Braunschweig law of
+     1228, that at weddings there should not be over 12 plates
+     nor more than three musicians. (_Rehtmeyer_, Chron., 466.)
+     Danish sumptuary law of 1269. First law regulating dress in
+     Prussia in 1269. (_Voigt_, Gesch. von Preussen, V, 97.) On
+     Henry II., see _v. Raumer_, Hohenstaufen, VI, 585. Some of
+     the earlier restrictions on luxury, such as that of 190 in
+     England and France, against scarlet ermine, etc., may have
+     been related to the religious fervor of the crusades. _St.
+     Louis_, during the whole period of his crusades wore no
+     articles of luxury.]
+
+     [Footnote 234-2: The English prohibition against the wearing
+     of silk on hats, caps, stockings etc. (1 and 2 Phil. and
+     Mary, ch. 2.) was promulgated with the intention of
+     promoting the home manufacture of wool. And so _Sully_,
+     Economics, L, XII, XVI, was in favor of laws regulating
+     outlay mainly from "mercantilistic" reasons, that the
+     country might not be impoverished by the purchase of foreign
+     expensive articles. The police ordinance of the Empire of
+     1548, tit. 9, desired to guard against both the "excessive"
+     exportation of money and the obliteration of class
+     differences; that of 1530, tit. 9, and the Austrian police
+     ordinance of Ferdinand I. had only the second object in
+     view. (_Mailath_, Gesch., von Oesterreich, II, 169 ff.) How,
+     in Denmark, prohibitions of luxury grew very soon into
+     prohibitions of imports with a protective intention, see in
+     _Thaarup_, Dänische Statistik, I, 521 seq. On the
+     mercantilistic object of the greater number of prohibitions
+     of coffee, in the 18th century, see _Dohm_, über
+     Kaffeegesetzgebung, in the D. Museum, Bd., II, St. 8, No.
+     4.]
+
+     [Footnote 234-3: _Des Essart_, Dictionnaire universel de
+     Police, VI, 146. In Great Britain, the Scotch luxury-law of
+     1621 is the last. (_Anderson_, Origin of Commerce, a. 1621.)
+     In Germany, there were some such laws until the end of the
+     18th century; and the laws regulating mourning have lasted
+     longest. Compare that of Frederick the Great of 1777, the
+     Bamberg and Wurzberg laws of 1784, in _Schlözer_,
+     Staatsanzeigen, IX, 460; fol. 141 ff. There are many men who
+     have no desire to go to any heavy expense in mourning, but
+     do not dare to give expression thereto in certain cases, and
+     therefore look with favor on a law to which they may appeal
+     as an excuse.]
+
+     [Footnote 234-4: Compare _N. Montaigne_, 1580, Essais, I,
+     63. A striking instance in antiquity: _Macrob._, II, 13;
+     most recently in _Lotz_, Revision, I, 407.]
+
+     [Footnote 234-5: Compare especially the French sumptuary law
+     of 1567. Zaleucos went so far in his severity as to punish
+     with death the drinking of unmixed wine, without the
+     prescription of a physician. (_Athen._, IX, 429.) The effort
+     has sometimes been made to enlist the feeling of honor of
+     the people in the controlling of luxury. Thus old Zaleucos
+     forbade the wearing of gold rings or Milesian cloth unless
+     the wearer desired to commit adultery, or to be guilty of
+     sins against nature (_Diodor._, XII, 21); but such laws are
+     scarcely attended with success.]
+
+
+SECTION CCXXXV.
+
+DIFFICULTY OF ENFORCING SUMPTUARY LAWS.
+
+The impossibility of enforcing sumptuary laws has been most strikingly
+observed, where it has been attempted to suppress the consumption of
+popular delicacies in the first stages of their spread among the people.
+Thus, an effort was made in this direction in the sixteenth century, as
+regards brandy; in the seventeenth, as regards tobacco; in the
+eighteenth, as regards coffee; all which three articles were first
+allowed to be used only as medicines.[235-1] When governments discovered
+after some time the fruitlessness of the efforts, they gave up the
+prohibition of these luxuries and substituted taxes on them
+instead.[235-2] Thus an effort was made to combine a moral and a fiscal
+end. But it should not be lost sight of that the lower these taxes are,
+the greater the revenue they bring in; that is, the less the moral end
+is attained, the more is the fiscal end. Even Cato took this course. His
+office of censor, which united the highest moral superintendence with
+the highest financial guidance, must of itself have led him in this
+direction.[235-3] In modern times the most important excises and
+financial duties of entry have been evolved out of sumptuary laws. Even
+the Turks, after having long tried to prohibit tobacco-smoking in vain,
+afterwards found in the duties they imposed on that plant a rich source
+of income. That such taxes are among the best imposed, where they do not
+lead to frauds on the government, become excessive, or diminish
+consumption to too great an extent, is universally conceded.
+
+Beyond this there is, on the whole, little left of the old police
+regulations relating to luxury. Thus, governmental consent is, in most
+countries, required for the establishment of places where liquors are
+sold at retail, for the maintenance of public places of amusement, for
+shooting festivals, fairs, etc.; and this consent should not be too
+freely granted. The police power prescribes certain hours at which
+drinking places shall be closed. Games of chance are wont to be either
+entirely prohibited or restricted to certain places and times (bathing
+places), or are reserved as the exclusive right of certain institutions,
+especially state institutions. The object of this is, on the one hand,
+to facilitate their supervision, and on the other, to diminish the
+number of seductive occasions. Here, too, belongs the appointment of
+guardians to spendthrifts, which is generally done on the motion of the
+family by the courts; but which, indeed, occurs too seldom to have any
+great influence on the national resources, or on national morals.[235-4]
+
+     [Footnote 235-1: Hessian law that only apothecaries should
+     retail brandy, 1530. English tobacco laws of 1604; _Rymer_,
+     Fœdera, XVI, 601. Papal excommunication fulminated in
+     1624, against all who took snuff in church, and repeated in
+     1690. A Turkish law of 1610 provided that all smokers should
+     have the pipe broken against their nose. A Russian law of
+     1634, prohibiting smoking under penalty of death. In
+     Switzerland, even in the 17th century, no one could smoke
+     except in secret. Coffee had a hard struggle even in its
+     native place. (_Ritter_, Erdkunde, XIII, 574 ff.) Prohibited
+     in Turkey in 1633, under pain of death. _v. Hammer_,
+     Osmanische Staatsverwaltung, I, 75. In 1769, coffee was
+     still prohibited in Basel, and was allowed to be sold by
+     apothecaries only, and as medicine. (_Burkhardt_, C. Basel,
+     I, 68.) Hanoverian prohibition of the coffee trade in the
+     rural districts in 1780: _Schlözer_, Briefwechsel, VIII, 123
+     ff.]
+
+     [Footnote 235-2: According to _v. Seckendorff_,
+     Christenstaat, 1685, 435 seq., a decidedly unchristian
+     change.]
+
+     [Footnote 235-3: _Livy_, XXXIX, 44. In Athens, too, the
+     highest police board in the matter of luxury was the
+     areopagus, which was at the same time a high financial
+     court. Sully transformed the prohibition of luxury in regard
+     to banquets into a tax on delicacies. Similarly, in regard
+     to funeral-luxuries, at an earlier date. (_Cicero_, ad.
+     Att., XII, 35.)]
+
+     [Footnote 235-4: Customary even in the early Roman republic,
+     and adjudged _exemplo furioso_. (_Ulpian_, in L. 1 Digest,
+     XXVII, 10.) The immediate knights of the empire were in this
+     respect very severe towards those of their own order. See
+     _Kerner_, Reichsrittersch. Staatsrecht, II, 381 ff. _Sully_
+     ordered the parliaments to warn spendthrifts, to punish them
+     and place them under guardianship. (Economies royales, L,
+     XXVI.) According to _Montesquieu_, it is a genuine
+     aristocratic maxim to hold the nobility to a punctual
+     payment of their debts. (Esprit des Lois, V, 8.)]
+
+
+SECTION CCXXXVI.
+
+EXPEDIENCY OF SUMPTUARY LAWS.
+
+To judge of the salutariness of sumptuary laws, we must keep the above
+three social periods in view throughout. At the close of the first
+period, every law which restricts the excesses of the immediately
+succeeding age (the middle age) is useful because it promotes the noble
+luxury of the second period.[236-1] And so, in the third period,
+legislation may at least operate to drive the most immoral and most
+odious forms of vice under cover, and thus to diminish their contagious
+seduction. It is a matter of significance that, in Rome, the most
+estimable of the emperors always endeavored to restrict luxury.[236-2]
+But too much should not be expected of such laws. _Intra animum medendum
+est; nos pudor in melius mutet._[236-3] It is at least necessary, that
+the example given in high places should lend its positive aid, as did
+that of Vespasian, for instance, who thus really opposed a certain
+barrier to the disastrous flood of Roman luxury.[236-4]
+
+But a strong and flourishing nation has no need of such leading
+strings.[236-5] Where an excrescence has to be extirpated, the people
+can use the knife themselves. I need call attention only to the
+temperance societies of modern times (Boston, 1803), which spite of all
+their exaggeration[236-6] may have a very beneficial effect on the
+morally weak by the solemn nature of the pledge, and the control their
+members mutually exercise over one another. It is estimated that, of all
+who enter them, in the British Empire, at least 50 per cent. remain true
+to the pledge. In Ireland the government had endeavored for a long time
+to preserve the country from the ravages of alcohol by the imposition of
+the highest taxes and the severest penalties for smuggling. Every
+workman in an illegal distillery was transported for seven years, and
+every town in which such a one was found was subjected to a heavy fine.
+But all in vain. Only numberless acts of violence were now added to
+beastly drunkenness. On the other hand, the temperance societies of the
+country decreased the consumption of brandy between 1838 and 1842, from
+12,296,000 gallons to 5,290,000 gallons. The excise on brandy decreased
+£750,000; but many other taxable articles yielded so much larger a
+revenue, that the aggregate government income there increased about
+£91,000.[236-7] [236-8] The Puritanical laws which some of the United
+States of North America have passed prohibiting all sales of spirituous
+liquors except for ecclesiastical, medical or chemical purposes, have
+been found impossible of enforcement.[236-9] [236-10]
+
+     [Footnote 236-1: Commendable laws relating to luxury in
+     Florence in the beginning of the 15th century. The outlay
+     for dress, for the table, for servants and equipages was
+     limited; but, on the other hand, it was entirely
+     unrestricted for churches, palaces, libraries, and works of
+     art. The consequences of this legislation are felt even in
+     our day. (_Sismondi_, Gesch. der Ital. Freistaaten im M. A.,
+     VIII, 261. Compare _Machiavelli_, Istor. Fior., VII, a.,
+     1472.)]
+
+     [Footnote 236-2: Thus Nerva (_Xiphilin._, exc. Dionis,
+     LXVIII, 2); Hadrian (_Spartian V. Hadrian_, 22); Antoninus
+     Pius (Capitol, 12); Marcus Aurelius (Capitol, 27); Pertinax
+     (Capitol, 9); Severus Alexander (_Lamprid_, 4); Aurelian
+     (_Lamprid_, 49); Tacitus (_Vopisc_, 10 seq).]
+
+     [Footnote 236-3: Extracted from the remarkable speech made
+     by the personally frugal Tiberius (_Sueton._, Tib., 34)
+     against sumptuary laws: _Tacit._, Annal., III, 52 ff.
+     Compare, however, IV, 63.]
+
+     [Footnote 236-4: _Tacit._, Ann., III, 55: but the
+     differences in fortune had, at the same time, become less
+     glaring. Henry IV. also dressed very simply for example's
+     sake, as did also Sully, and ridiculed those _qui portaient
+     leurs moulins et leur bois de haute-futaie sur leurs dos_.
+     (_Péréfixe_, Histoire du Roi Henry le grand, 208.)]
+
+     [Footnote 236-5: The gross luxuries of drunkenness and
+     gluttony are a direct consequence of universal grossness,
+     and disappear of themselves when higher wants and means of
+     satisfying them are introduced. (_v. Buch_, Reise durch
+     Norwegen und Lappland, 1810, I, 166; II, 112 ff.)]
+
+     [Footnote 236-6: While, formerly, they cared only to abstain
+     from spirits, the so-called "total abstinence" has prevailed
+     since 1832. Most teetotallers compare moderate drinking to
+     moderate lying or moderate stealing; they even declare the
+     moderate drinker worse than the drunkard, because his
+     example is more apt to lead others astray, and he is harder
+     to convert. (But, Psalm, 104, 15!) The coat of arms of the
+     English temperance societies is a hand holding a hammer in
+     the act of breaking a bottle. (Temperance poetry!)]
+
+     [Footnote 236-7: _McCulloch_, On Taxation, 342 ff. Speech of
+     _O'Connell_ in the House of Commons, 27 May 1842. The more
+     serious crimes decreased 1840-44, as compared with the
+     average number during the five previous years by 28, and the
+     most grievous by 50 per cent. (_Rau_, Lehrbuch, II, § 331.)
+     Recently, the first enthusiasm awakened by Father Matthew
+     has somewhat declined, and the consumption of brandy
+     therefore increased. Yet, in the whole United Kingdom in
+     1853, only 30,164,000 gallons were taxed; in 1835,
+     31,400,000; although the population had in the meantime
+     increased from 10 to 11 per cent. In 1834, there were in the
+     United States 7,000 temperance societies with a membership
+     of 1,250,000. The members of these societies are sometimes
+     paid higher wages in factories; and ships which allow no
+     alcohol on board are insured at a premium of five per cent.
+     less. (_Baird_, History of the Temperance Societies in the
+     United States, 1837.)]
+
+     [Footnote 236-8: In the princedom of Osnabrück, the number
+     of distilleries was noticeably diminished under the
+     influence of the temperance societies; but the consumption
+     of beer was rapidly increased twenty-fold. (Hannoverisches
+     Magazin, 1843, 51. _Böttcher_, Gesch. der M. V. in der
+     Norddeutschen Bundestaaten, 1841.)]
+
+     [Footnote 236-9: Even in 1838, Massachusetts had begun to
+     restrict the sale at retail. The agitation for the
+     suppression of the liquor shops begins in 1841. According to
+     the Maine law of 1851, a government officer alone had the
+     right to sell liquor, and only for the purposes mentioned in
+     the text. The manufacture or importation of liquor for
+     private use was left free to all. A severe system of
+     house-searching, imprisonment and inquisitorial proceedings
+     in order to enforce the law. Similarly in Vermont, Rhode
+     Island, Massachusetts and Michigan. (Edinburg Rev., July,
+     1854.) There are, however, numberless instances related in
+     which the law has been violated unpunished since 1856, and
+     still more since 1872. See _R. Russell_, North America, its
+     Agriculture and Climate, and Edinburg Rev., April, 1873,
+     404.]
+
+     [Footnote 236-10: From the foregoing, it is intelligible why
+     most modern writers, even those otherwise opposed to luxury,
+     are not favorably inclined towards sumptuary laws. "It is
+     the highest impertinence and presumption in kings and
+     ministers, to pretend to watch over the economy of private
+     people and to restrain their expense, either by sumptuary
+     laws or by prohibiting the importation of foreign luxuries.
+     They are themselves always, and without any exception (?)
+     the greatest spendthrifts in the society. If their own
+     extravagance does not ruin the state, that of their subjects
+     never will." (_Adam Smith_, I, ch. 3.) Compare _Rau_,
+     Lehrbuch II, § 358 ff. _R. Mohl_, Polizeiwissenschaft, II,
+     434 ff.
+
+     _Montesquieu's_ opinion that in monarchies luxury is
+     necessary to preserve the difference of class but that in
+     republics it is a cause of decline, is very peculiar. In the
+     latter, therefore, luxury should be restricted in every way:
+     agrarian laws should modify the too great difference in
+     property and sumptuary laws restrain the too glaring
+     manifestations of extravagance. (Esprit des Lois, VII, 4.)
+     As an auxiliary to the history of sumptuary laws, compare
+     _Boxmann_, De Legibus Romanorum sumptuarias, 1816. _Sempere
+     y Guarinos,_ Historia del Luxo y de las Leyes sumtuarias de
+     Espana, II, 1788; _Vertot_, Sur l'Establissement des Lois
+     somptuaires parmi les Français, in the Mémoires de
+     l'Academie des Inscr., VI, 737 seq, besides the sections on
+     the subject in _Delamarre_, Traité de la Police, 1772 ff.;
+     _Penning_, De Luxu et Legibus sumtuariis, 1826.
+     (_Holland._)]
+
+
+
+
+CHAPTER III.
+
+INSURANCE IN GENERAL.
+
+
+SECTION CCXXXVII.
+
+INSURANCE IN GENERAL.
+
+The idea of societies for mutual assistance intended to divide the loss
+caused by destructive accidents which one person would not be able to
+recover from among a great many is very ancient. The insurance of their
+members against causes of impoverishment was one of the principal
+elements[237-1] of the strength of the medieval communities (_Gemeinden
+und Körperschaften._) If we compare these insurance institutions of the
+middle ages with those of the present, we discover the well-known
+difference between a _corporation_ and an _association_. There the
+members stand to one another in the relation of _persons_ who,
+therefore, seek to guaranty their entire life in the one combination;
+here, they appear only as the representatives of limited portions of
+capital confronted with a definite risk, the average of which may be
+accurately determined. Hence, the former are of small extent, mostly
+local; the latter may extend over whole continents, and even over the
+whole earth. The former have uniformly equal members; the latter embrace
+men of the most different classes. While the former, therefore, simply
+govern themselves, often only on the occasion of their festive
+gatherings, the latter need a precise charter, an artificial tariff and
+a board of officers.
+
+As the absolute monarchical police-state constitutes, generally, the
+bridge between the middle ages and modern times, so too the transition
+from the medieval to the modern system of insurance has been frequently
+introduced by state insurance.[237-2] [237-3] This was very natural at a
+time when the guilds of the middle ages had lost their importance, and
+private industry was not ripe enough to supply the void left by them.
+The government of a country, far in advance intellectually of the
+majority of its subjects, may, by force, induce them to participate in
+the beneficent effects of insurance, and immediately provide
+institutions extensive enough to guaranty real safety. While it may be
+called a rule that mature private industry satisfies wants more rapidly,
+in greater variety, and more cheaply than state industry; in the case of
+insurance against accidents, especially of insurance against fire, there
+are many peculiarities found which would make the entire cessation of
+the immediate action of the state in this sphere, or its limitation
+simply to a legislative and police supervision of insurance, seem a
+misfortune. A dwelling is one of the most universal and urgent of wants,
+and indeed a governing one in all the rest of the arrangements of life.
+If it be destroyed, it is especially difficult to find a substitute for
+it, or to restore it. And to the poorest class of those who need
+insurance, private insurance will, perhaps, be never properly
+accessible.[237-4] If German fire insurance and the German system of
+fire prevention be so superior to the English and North American, etc.,
+one of the principal causes is that German governmental institutions so
+powerfully participate in it.[237-5]
+
+     [Footnote 237-1: The Icelandic _repps_ consisting as a rule
+     of 20 citizens subject to taxation, who mutually insured one
+     another against the death of cattle (to the extent of at
+     least one-fourth the value), and against damage from fire.
+     After every fire three chambers of each house were replaced;
+     so also the loss of clothing and of the means of
+     subsistence, but not other goods or articles of display.
+     (_Dahlmann_, Danisch Gesch., II, 281 ff.) Scandinavian
+     parish-duty, (_Gemeindepflicht),_ of assistance in case of
+     damage by fire: _Wilda_, Gesch. des deutschen Strafrechts,
+     I, 142. Similarly Capitul. a. 779 in _Pertz_, Leges, I, 37.
+     This matter plays an important part in the guilds out of
+     which a large portion of the ancient cities were evolved:
+     compare _Wilda_, Gildenwesen in M. Alter. 123.]
+
+     [Footnote 237-2: Proposed national fire insurance
+     (_Landesbrandversicherung_) in which for the time being
+     several villages should form a company, the surplus of which
+     was to go to the ærarian, and the deficit to be made up by
+     the same: _Georg Obrecht_, Fünf unterschiedliche Secreta,
+     Strasburg, 1617, No. 3. A similar proposition made on
+     financial grounds in 1609, and rejected in Oldenburg.
+     (_Beckmann_, Beitr. zur Gesch. der Erfind, I, 219 ff.) The
+     idea sometimes suggested in our day, of making the system of
+     insurance a government prerogative, arises as much from the
+     passion for centralization as from socialistic tendencies.
+     Compare the Belgian Bulletin de la Commission de Statist.
+     IV, 210, and _Oberländer_, Die Feuerversicherungsanstalten
+     vor der Ständeversammlung des k. Sachsen, 1857.]
+
+     [Footnote 237-3: Maritime insurance is much older than
+     insurance against risks on land; the Dutch institutions of
+     Charles V.'s time seem to have existed long before.
+     (Richesse de Hollande, I, 81 ff.) On Flemish, Portuguese and
+     Italian maritime insurance in the 14th century, see
+     _Sartorius_, Gesch. der Hanse, I, 215; _Schäfer_, Portug.
+     Gesch. II, 103 ff., and _F. Bald. Pegolotti_, Tratato della
+     Mercatura in Della decima, etc., della Moneta e della
+     Mercatura dei Fiorentini, 1765. The class engaged in
+     maritime commerce are indeed especially and early rich in
+     capital, speculative and calculating.]
+
+     [Footnote 237-4: In Berlin, in 1871, the movable property of
+     30.4 per cent. of all dwellings was insured; but with this
+     great difference, that of the smallest (without any heatable
+     rooms) only 5.3 per cent. were insured; while of dwellings
+     having 5-7 heatable rooms, 84 per cent. had taken this
+     precaution. (_Schwabe_, Volkszahlung von 1871, 169) But it
+     should not be forgotten that private insurance, especially
+     when speculative, is not in favor of having much to do with
+     persons of small means, while public institutions are, for
+     the most part, obliged to reject no proposition for
+     insurance in their own line, except when coming from a few
+     manufacturing quarters especially exposed to fire.]
+
+     [Footnote 237-5: Outside of Germany, public fire insurance
+     is to be still found only in German Austria, in Denmark,
+     Switzerland and Scandinavia. The Germans had, in 1871, an
+     insurance-sum of 5,908,760,000 thalers, while the mutual
+     private insurance companies had about 1,435,000,000 (of
+     which, at most, 200,000,000 to 300,000,000 were on immovable
+     property), and joint-stock insurance companies, after
+     deducting re-insurance (_Rückversicherung_), about
+     7,000,000,000. (Mittheilungen der öff. F. V. Anstalten,
+     1874, 84 ff.) Between 1865 and 1870, it was estimated that
+     the per capita insurance of the population was: in Saxony,
+     407 thalers; in Würtemberg, 410; in Baden, 365; in Prussia,
+     332; in Switzerland, 425. On the other hand, in the much
+     wealthier British Empire, only 325 per capita; in North
+     America, 215. (loc. cit., 92.) Even in the case of
+     joint-stock insurance companies, the average receipts of
+     premiums (1867-70) were, in Germany, 2 per 1,000 of the
+     insurance-sums; in the United Kingdom, 4.06 per 1,000; in
+     the United States, 10.77; and the damage respectively 1.25,
+     2.28, 5.92 per 1,000 of the insurance-sum. (loc. cit., 93.)]
+
+
+SECTION CCXXXVII (_a_).
+
+INSURANCE IN GENERAL.--MUTUAL AND SPECULATIVE INSTITUTIONS.
+
+All insurance institutions fall into two classes:
+
+A. Mutual insurance companies, in which the insured are also as a
+society the insurers, and share the aggregate damage, of a year, for
+instance, among themselves.
+
+B. Speculative institutions, in which a party, generally a joint-stock
+company, in consideration of a certain definite compensation (premium
+agreed upon and paid in advance), assumes the risk.[237a-1]
+
+So far as security is concerned, no absolute preference can be accorded
+to either of these classes. Mutual insurance companies require to extend
+their business very largely[237a-2] to be able to meet great damage. And
+even where the liability of the members is unlimited, care must be taken
+to distinguish between the legally and the actually possible.[237a-3]
+The joint capital of a well organized[237a-4] premium-association
+affords, in this respect sufficient security from the first, but the
+ratio between its security-fund and the amount of its assumed
+liabilities becomes less favorable as the business is extended, in case
+the fund itself is not enlarged.[237a-5] Mutual insurance may accomplish
+something analogous to that accomplished by a joint-stock fund by
+collecting a reserve of yearly dues in advance, thus modifying the
+burdensome vacillation of the amount payable each year.[237a-6]
+Experience, however, teaches, that the strongest form of mutual
+insurance, that supported either by municipalities or by the state, has
+been able to meet extraordinary damage from fire much better than
+premium-institutions, which are too quickly left in the lurch by the
+stockholders when the damage is greater than the amount of the stock
+subscribed. So also loss from fire caused by war or riots is for the
+most part and on principle, excluded by speculative insurance
+institutions.[237a-7]
+
+In point of cheapness to the insured, mutual insurance seems to have the
+advantage, since it contemplates no profit.[237a-8] From a
+national-economical point of view, also, it is very much of a question,
+whether the active competition of premium institutions, in a sphere
+which affords little room for industry proper, is more of a spur to make
+them "puff up" their claims (_Reclamen_) or to the simplification of
+their administration.[237a-9] However, premium-institutions are more
+easily capable of extending the circle of their business;[237a-10] which
+of itself decreases the general expenses and strengthens their insuring
+power. Premium-insurance supposes a greater development of capitalistic
+speculation than does mutual insurance. But, even in the highest stages
+of civilization, the competition of some mutual insurance companies is
+desirable to protect the insured from a too high rate of profit to the
+insurers.[237a-11] [237a-12] And since the principle of mutual insurance
+has so little attraction for capitalists in a time like that in which we
+live that it can be maintained perhaps only by the support of the state
+or of municipalities, we may consider the desirableness of the state's
+continuing to participate in some way in the matter of insurance as
+established.
+
+     [Footnote 237a-1: We might, however, improperly add another
+     class, that of self-insurance, which lies in the proper
+     distribution of a large capital over a great many points.
+     When, for instance, a large state insures its buildings,
+     this seems a superfluous outlay of public money for the
+     benefit of private associations. Or does England insure its
+     ships? On this account, in Prussia, the insurance of
+     post-offices which Frederick William favored, has recently
+     been done away with. (_Stephan_, Gesch. der Preuss. Post,
+     195, 803.)]
+
+     [Footnote 237a-2: According to _Brüggemann_ (D. Allg. Ztg.,
+     1849, No., 75 ff.), 100 million thalers of an insurance-sum.
+     Actual American legislation prescribes in the case of mutual
+     insurance a minimum number of members of from 200 to 400, a
+     minimum amount of annual premiums of from $25,000 to
+     $200,000, of cash payments on the annual premium of from 10
+     to 40 per cent. of cash-paid yearly premiums, $5,000 to
+     $40,000; and a maximum amount of premium notes made by a
+     member of $500. (Compare Mittheilungen, 26 ff.)]
+
+     [Footnote 237a-3: Hence several mutual companies limit
+     themselves to a maximum liability. Thus, for instance, the
+     Gotha Fire Insurance Company requires from each member a
+     bond that in case of necessity, four times the amount of the
+     presumptive contribution paid in advance shall be paid
+     after; in Altona, six times the yearly premium is the
+     maximum.]
+
+     [Footnote 237a-4: In France, every premium-insurance-company
+     has to be approved by the government (Cod. de Comm., art
+     37), and the approval is not given until 1/5 of the
+     joint-stock capital has been deposited. (_Block_, Dictionn.
+     de l'administration, Fr. 153.) Many recent American laws
+     require that the shares of insurance companies should be
+     registered with the name of the owner.]
+
+     [Footnote 237a-5: The Aix-Munich Fire Insurance Association
+     raised its joint-stock capital after the Hamburg fire from 1
+     to 3 million thalers.]
+
+     [Footnote 237a-6: Usually so that the regular yearly
+     contribution is higher than the average damage and cost of
+     administration; this excess is then returned in the form of
+     a dividend, either immediately at the close of the yearly
+     account, or which is still safer, after several years. In
+     the Stuttgart private insurance company, the reserve must
+     amount to one per cent. of the amount insured, before the
+     premium-surplus is returned. The Gotha fire insurance
+     company, between 1821 and 1842, paid back an average of 46
+     per cent.; and even in 1842, after the Hamburg
+     conflagration, there was an after-payment of only 98 per
+     cent. necessary. This collection in advance of a fund for
+     extraordinary losses is more secure than borrowing in case
+     of need, and paying back in good years. Thus, the Baden
+     Landes-Brandkasse had a debt in 1837 of 800,000 florins.
+     (_Rau_, in the Archiv., III, 320 ff.) In a mutual insurance
+     company, where entrance and exit are free, this would be
+     scarcely possible.]
+
+     [Footnote 237a-7: Nearly three-fourths of the public
+     insurance institutions insure also against fire caused by
+     war (Mitth., 1874, 85), a matter of importance even as war
+     is waged in our own days, since in 1870-71, the damage from
+     fire by the Franco-Prussian war in France was estimated at
+     141,000,000 francs. (Mitth., 1873, 33.)]
+
+     [Footnote 237a-8: In Prussia, the mutual fire insurance
+     companies, in 1865 and 1866 had an administration outlay of
+     0.24 and 0.22 per 1,000 of the amount insured; the premium
+     insurance companies of 0.80 and 0.96; the latter doubtless
+     including large assessments for common purposes. (Preuss.
+     Statist. Ztschr., 1868, 269.) In all Germany, the outlay for
+     administration is, for public institutions, 4 per cent. of
+     the contributions; for premium institutions, inclusive of
+     their dividends, 37.1 per cent.; for the more important
+     French private institutions, even 68.8 per cent. (Mitth.,
+     1874, 89, 92.)]
+
+     [Footnote 237a-9: German public fire insurance institutions
+     generally have a territory of their own, in which that
+     institution is the only one of the kind. On the other hand,
+     the premium institutions in the whole empire keep about
+     80,000 agents, i. e., a number 50 times as large as the
+     number of officers of the former, (loc. cit. 90.)]
+
+     [Footnote 237a-10: Mutual insurance companies, as they have
+     extended, have sometimes split up into several; for
+     instance, the insurance companies against damage by hail at
+     Lübeck, Güstrow, Schwedt and Griefswald, daughters of that
+     at New Brandenburg.]
+
+     [Footnote 237a-11: The founder of the Mutual Fire Insurance
+     Company of Gotha expressed the hope that in it, it would be
+     possible to insure 60 per cent. cheaper than was customary
+     in the joint stock companies of the time. In the system of
+     agricultural _Einzelhöfe_ in Germany, small mutual insurance
+     companies are possible, and insurance then may be very
+     cheap.]
+
+     [Footnote 237a-12: On the premium associations, _Bernoulli_
+     Ueber die Vorzüge der gegenseitige Brandasscuranzen vor
+     Prämiengesellschaften, 1827. _Per contra_, _Masius_, Lehre
+     der Versicherung und Statische Nachweisung aller V.
+     Anstalten in Deutschland, 1846. In Prussia, premium
+     associations are growing more rapidly than mutual: the per
+     capita amount on the whole population insured in the former
+     against damage from fire in 1861 was 116.6 thalers; in 1866,
+     154.2; in 1869, 176.6; in the latter in 1861, 103.5; 1866,
+     124.3; 1869, 154.3 thalers. (_Engel_, Statist. Zeitschr.,
+     1868, 268 ff.; 1871, 284 ff.) In France, in the former, in
+     1857, almost 36 milliards of francs; in the latter, in 1864,
+     13 milliards. (Mitth., 1871, 51.)]
+
+
+SECTION CCXXXVII (_b_).
+
+INSURANCE IN GENERAL.--ECONOMIC ADVANTAGES OF INSURANCE.
+
+The national-economic advantage of insurance consists in this, that the
+damage which is divided among many, and which, therefore, is felt but
+lightly by each one, is probably made up for, not by an inroad upon the
+body of still existing original resources, but by savings made from
+income. This, indeed, is unconditionally true only of such damage as
+does not depend at all on the will of man, such as, for instance, the
+damage caused by hail. On the other hand, there is especially in
+maritime[237b-1] and fire insurance,[237b-2] a great temptation to
+culpable and even criminal destruction; to the latter, when the object
+insured is estimated at too high a value. (Speculation-fires!) And it is
+difficult to say whether this drawback or that advantage is the greater.
+But, on the other hand, every kind of insurance is attended by good
+consequences to the credit of a people. It is of advantage to personal
+credit, since it prevents sudden impoverishment; but it is by far more
+advantageous to real-credit (_Realcredit_ = _material credit_) the
+pledges of which, while their forms may be destroyed, it preserves the
+value of; that is their economic essence. This last is most clearly
+manifest in the case of public insurance institutions, with compulsory
+participation; while in the case of entirely voluntary insurance, the
+creditor can never be certain that his debtor has not neglected
+something necessary. The aggregate danger is less than the sum of
+individual dangers, for the reason that it is more certain, and that
+uncertainty of itself is an element of danger.[237b-3] [237b-4]
+
+     [Footnote 237b-1: Even in Demosthenes' oration against
+     Zenothemis, we may see how easily the analogy of maritime
+     insurance may lead to criminal destruction of property.
+     Similar cases mentioned by _Pegolotti_ before the middle of
+     the 14th century. (Delia Decima dei Fiorentini, III, 132.)]
+
+     [Footnote 237b-2: French experience teaches that during a
+     commercial crisis there are more fires in mercantile
+     magazines than at other times; while in times when sugar is
+     a drug in the market, etc., many sugar factories are burned.
+     (Dictionnaire de l'Econ. polit, I, 88.) The style of our
+     house-building and fire-extinguishing institutions is wont
+     to improve with economic culture. Hence, for instance, in
+     Mecklenburg, 1651 to 1799, cities burned down, in whole or
+     in greatest part, 72 times; 1800 to 1850, only once.
+     (_Boll_, Gesch., von Mecklenb., II, 618 ff.) However, in
+     many countries the damage caused by fire has largely
+     increased: in Baden, for instance, by 100,000 florins a
+     year. Insurance capital, 1809 to 1818, 65 fl.; 1819 to 1828,
+     128 fl.; 1829 to 1836, 152 fl. (_Rau_, Archiv, III, 322.)
+     Similarly in Switzerland. In Bavaria, of every 10,000
+     buildings insured, in 1856-60, there were 4.6 fires per
+     annum; 1861-65, 5.04; 1866-69, 8.67. (Preuss. Statist.
+     Ztschr., 1871, 315.)
+
+     In Saxony, in 1849-53, there was one fire in every 290
+     buildings; 1854-58, in every 201; 1859-63, in every 180. Of
+     these fires, 68 per cent. of the whole number were from
+     known causes, i. e., 36.4 per cent. from incendiarism; 28.5
+     per cent. from negligence. (Sächs, Statist. Ztschr., 1866,
+     106, 115.) Even in antiquity, similar evil consequences
+     attended the generosity which gratuitously compensated
+     damage by fire. Compare _Juvenal_, III, 215 ff.; _Martial_,
+     III, 52. In England, of every 128 cases of damage by fire of
+     "farming stock," 49 were caused by incendiaries, for the
+     most part actuated by revenge. Hence, there, a notice is
+     posted on insured buildings by the insurance companies which
+     runs: "this farm is insured; the fire office will be the
+     only sufferer in the event of a fire." In London, of every
+     seven fires among the small trading class, one is estimated
+     to have been the work of an incendiary, and of all fires at
+     least one-third (Athenæum, 2, Nov., 1867), if not one-half
+     (Mitth., 1879, 100). One of the largest English fire
+     insurance companies estimates that the introduction of the
+     lucifer match has caused it a damage of £10,000 per annum.
+     Of 9,345 fires, 932 were ascribed to gas, 89 to certain, and
+     76 to doubtful, incendiarism, 127 to lucifer matches, 8 to
+     storms, 100 to negligence, 80 to drunkenness, 2,511 to the
+     catching fire of curtains, 1,178 to candles, 1,555 to
+     chimneys, 494 to stoves, 1,323 to unknown causes. (Quart.
+     Rev., Dec, 1854, 14 ff.) Fires originate from criminal
+     (_dolose_) causes most frequently when a new stage in the
+     politico-economical development of a people is reached,
+     which renders the buildings put up in a former and lower
+     stage of development insufficient.]
+
+     [Footnote 237b-3: A Prussian fire insurance regulation, as
+     far back as 1720, expressly says: "everybody scruples to
+     make the least loan on pledged houses in towns." "Every care
+     shall be taken to make the least possible amount of loans in
+     cities." (_Jacobi_, in _Engel's_ Zeitschr., 1862, 122.)
+     _Leib_, Dritte Periode, etc., 1708, cites a proverb to the
+     effect that, in Hamburg, "no house takes fire;" that is, at
+     a time that its fire-fund-system (_Brandkassenwesen_) had as
+     yet found few imitators, _v. Justi's_ proposition to combine
+     the insurance of houses against fire with a loaning-bank for
+     houses. (Polizeiwissenschaft, 1756, I, § 7, 8 ff.) In
+     Russia, in 1815, the loaning bank was the only fire
+     insurance company, which however assumed risks only on stone
+     houses at three-fourths of their value in consideration of
+     15 per 1,000 annual premium. (_Rau_, Lehrbuch, I, 229.)]
+
+     [Footnote 237b-4: _Spittler_, Politik., 441, objects to
+     insurance that it diminishes benevolence and approximates to
+     communism, thus hitting the dark side of all very high
+     civilization.]
+
+
+SECTION CCXXXVII (_c_).
+
+FIRE INSURANCE.
+
+The present system of fire insurance has been introduced in many places
+by the establishment of so-called domanial fire-guilds
+(_Domanial-Brandgilden_), by which the country population on crown-lands
+bound themselves to mutually assist one another by furnishing thatch,
+and horse and hand power in the rebuilding of burned houses. Whatever
+was wanting after this was made up by gratuitous supplies of wood from
+the public forests, by the granting of governmental fire-licenses to beg
+(_begging letters_), by permission to have collections made in the
+churches[237c-1] etc. The next step was generally the establishment of
+public insurance (_Landes-Assecuranz_) only for houses,[237c-2] but with
+compulsory membership. This compulsion was justified by the continuing
+interest of the state in the payment of the house-tax, as well as by the
+interest of the eventual owner of the estate, and of
+hypothecation-creditors.[237c-3] [237c-4] The insurance of moveable
+property is much more recent, both by reason of the nature of the
+property itself, which becomes of importance only at a later date, and
+also on account of the much greater difficulty of carrying on such
+insurance.[237c-5] The thought of making this species of insurance
+compulsory, or of turning it over to the state, has seldom been
+suggested.
+
+     [Footnote 237c-1: Thus in Austria, even after the middle of
+     the 18th century: _Schopf_, L. W. des öst. Kaiserstaates, I,
+     p. 175. In the mandate of the electorate of Saxony of Dec.
+     7, 1715; but the fire-fund (_Feuerkasse_) of 1729 depended
+     on voluntary but regular collections, besides which it
+     obtained certain contributions from the state and the
+     church. Those who gave nothing, however, were threatened
+     with getting nothing, or very little, in case of fire.
+     Parties desiring to rebuild massively had especially much to
+     expect. (Cod. August Forst., I, 538.) The charters of the
+     oldest German _Landesbrandkassen_ contain a provision that,
+     in future, no further fire-collections shall be allowed.]
+
+     [Footnote 237c-2: The English Hand-in-Hand Fire Office for
+     houses, founded in 1696; the Union Fire O., for houses and
+     movable property, in 1714: both mutual institutions. The
+     premium-institution, the Sun Fire Office, 1710
+     (_Frankenberg_, Europ. Herold, 1705, II, 181), mentions fire
+     insurance as a special characteristic of England. But we may
+     trace fire insurance on buildings and harvest supplies in
+     the low countries about the Vistula in Prussia, even as far
+     back as 1623. (_Jacobi_, loc. cit., 131.) Brandenburg
+     fire-fund, 1705, with voluntary admittance of all houses,
+     and fixed relation between the yearly contribution and the
+     insurance capital. If a fire happened, the fund repaired the
+     damage caused to the fullest extent its means allowed.
+     (_Mylius_, Corp. Const. March. V., I, 174 seq.) Even in
+     1706, it became necessary to prohibit speaking ill of the
+     institution. It was, therefore, abolished later. The first
+     Würtemberg private fire insurance company, 1754, founded on
+     similar principles, and which was still existing in 1760,
+     had a like fate (_Bergius_, Polizei und Camerelmagazin, III,
+     40 ff.), but it was exchanged in 1773 for a mutual public
+     company. In Berlin a mutual insurance company in 1718
+     (_Bergius_, Cameralistenbibliothek, 151); in Denmark, 1830
+     (_Thaarup_, Dän. Statist., II, 173 seq.); in Silesia, 1742;
+     Calenberg-Grubenhagen, 1750; in Baden, 1758; in Kurmark,
+     1765; in Hildesheim, 1765; in Hesse-Darmstadt, 1777. In
+     France, the Parisian institution of 1745 is considered the
+     oldest. (_Beckmann_, Beitr. z. Gesch. d. Erfindd., I, 218.)]
+
+     [Footnote 237c-3: In Galenberg-Grubenhagen only the
+     _Bauerhöfe_ subject to the common burthens were obliged to
+     enter, in Hildesheim, all houses subject to taxation; in
+     Darmstadt all house-owners who were allowed only a _dominium
+     utile_. In Kurmark, the subjects of the estate might be
+     compelled to enter by their lords, but could not be kept
+     out. Of Prussian companies in 1846, entrance was compulsory
+     only in those of East Prussia and Posen. In Würtemberg
+     compulsion since 1773; confirmed in 1853. Also in Zurich,
+     Jan. 24, 1832; in Schaffhausen Nov. 27, 1835. In Berne, only
+     for state, municipal and mortgaged houses; for the latter
+     only so far as it was not expressly left to the creditor.
+     Introduced into Baden in 1807, after most of the parishes
+     (_Gemeinden_) had voluntarily accepted it; confirmed in
+     1840. The provision that at least no judicial hypothecation
+     should be made on an un-insured house is found in the
+     Darmstadt law of 1777, § 13, and in that of Mainz of 1780,
+     art. I, § 15. _Rau_, Lehrbuch, II, § 25 a., finds compulsion
+     in the case of property in common and in that of property
+     belonging to other persons very appropriate. It is a matter
+     worthy of thought, that, in cities like Berlin, Breslau,
+     Thorn and Stettin, compulsory fire insurance is still
+     retained. In Upper Silesia, the abolition of compulsory
+     provisions has had for effect to cause 52 per cent. of all
+     buildings to be insured. (Press Zeitschr, 1867, 329).]
+
+     [Footnote 237c-4: Question of introducing state insurance
+     into Hungary. As a cultured land, and one rich in capital,
+     is better adapted to insurance, it would be folly to
+     "emancipate" ones self from Trieste, etc. in this respect.
+     But, on the other hand, only state-insurance can attract the
+     Hungarians and make them feel universally the want of
+     insurance. A reconciliation of these opposing views might be
+     effected by compelling the peasantry to insure their farm
+     houses, and allowing complete liberty in the cities and with
+     reference to movable property.]
+
+     [Footnote 237c-5: Even _Bergins_, Polizei und Cameralmag.,
+     III, 80, 1768 ff., doubts the possibility of the insurance
+     of movable property. Insurance of movable property of the
+     Evangelical clergy in the electorate of Mark, in which,
+     however, only movable property of the value of 400 thalers
+     is considered. But by this provision the changeableness of
+     the object, which so facilitates fraud, was done away with.
+     Hamburg joint-stock company for the insurance of movable
+     property, 1779. Electorate of Saxony fire-fund for movable
+     property, 1784-1818, which, however, made good, as a rule,
+     only 25 per cent. of the damage caused. In Prussia, in 1814,
+     there were only 12 insurance companies in which movable
+     property could be insured. In the aggregate even they were
+     but of little extent, and had generally a partnership,
+     guild, or communal basis. (_Jacobi_, loc. cit, 123.) On the
+     other hand, in 1869, there were in all the mutual insurance
+     companies, 530,600,000 thalers worth of movable property
+     insured, besides 2,814,800,000 thalers worth of immovable
+     property, and 366,100,000 thalers worth of property of a
+     mixed nature, partly movable and partly immovable. (Preuss.
+     Statist. Zeitschr., 1876, 298.)]
+
+
+SECTION CCXXXVII (_d_).
+
+REQUISITES OF A GOOD SYSTEM OF FIRE INSURANCE.
+
+Among the chief requisites of a good fire insurance system are the
+following:
+
+A. The adoption in insuring of measures for the prevention of criminal
+abuse on the part of the insured. No one should be benefited by the
+burning of his insured goods.[237d-1] Hence, the rates of insurance
+should be rigidly fixed according to the real value in exchange.[237d-2]
+In the case of houses, the value of the incombustible elements of value
+should be deducted; also the value of the ground and the value it
+possesses from being advantageously situated, etc. The simultaneous
+insurance of the same object in several companies without proper notice
+being given should be unconditionally prohibited.[237d-3] The control of
+all this may be greatly facilitated by requiring foreign insurance
+companies to obtain a special permit to carry on their business in the
+country, and to allow them to effect insurance only through responsible
+home agents.[237d-4] Most insurance companies exclude from insurance
+personal property which may be easily secreted, such, for instance, as
+jewels, cash money, valuable documents, etc.
+
+B. There should be a just proportion between the insurance premium and
+the risk. This depends not only on the style of building of the houses
+themselves and of those in the neighborhood,[237d-5] on the situation,
+the too great intricacy (_Complicirung_) of which extends the ravages of
+fire, as its too great isolation makes assistance difficult;[237d-6] but
+also on the nature of the business carried on in them,[237d-7] and on
+the condition of the local development of fire police. Highly cultured
+places, especially large cities, are really much less exposed to damage
+from fire. To not take this into account would be not only to
+compulsorily dole out charity to the poorer classes of the people, and
+to the less cultivated portions of the country,[237d-8] but it would
+indirectly put an obstacle in the way of a transition to the massive
+construction of houses, and of good, that is, as a rule, of costly
+fire-extinguishing institutions.[237d-9] On the other hand,
+administration must be rendered much more difficult by the taking of
+risks of many degrees of danger, especially as it is scarcely possible,
+for a long time, to even hope for a statistically unassailable basis of
+a tariff graded in exact accordance with the risk.[237d-10] If those
+objects especially exposed to danger should be excluded altogether, the
+common utility of the institution would be largely diminished; and the
+insured least exposed to danger would nevertheless have to complain of a
+relatively too high contribution.[237d-11] If every peculiar class of
+risks were to be treated as one whole, the insuring principle itself
+would suffer.[237d-12] Where the nation or municipality engages in the
+business of compulsory insurance, its too rigid system of rate-fixing
+has something inequitable in it, inasmuch as it makes the most provident
+housekeeper suffer from the danger from fire of his neighbor's
+establishment, a gas factory, for instance.
+
+C. The certainty of compensation for damage suffered. The government
+should see to it that the institution does not promise more than it can
+perform with its joint-stock capital and by means of its
+premiums.[237d-13] The good will of foreign institutions to keep their
+promises to the letter is best assured by requiring them as a condition
+precedent of carrying on their business in a country, to bind themselves
+to litigate only in the home courts. They protect themselves against the
+risk of very large insurances by the system of re-insurance, by
+transferring a portion of the premium as well as of the risk to one or
+more other insurance companies.[237d-14]
+
+D. In all highly cultured quarters, the almost entirely voluntary
+fire-extinguishing system, in which the people turned out in a body to
+battle with the flames, made way for the fire-militia system; and if the
+latter should make place for what we may designate as a standing
+fire-army which is most easily attained in connection with the
+fire-insurance system, we should reach the ideal of such a system,
+especially if the business of insurance was in the hands of the state or
+of the municipality. Such a system would be in accordance with the
+principle of the division of labor, and, also, with the fact that
+usually the most vital interest is the greatest spur to action.[237d-15]
+
+     [Footnote 237d-1: The former almost unrestricted liberty of
+     the American system of insurance has recently been
+     curtailed, in most of the states, by a rigid governmental
+     superintendence, by special insurance boards with power to
+     permit companies to engage in the business of insurance, and
+     endowed with the right of imposing proper penalties, but of
+     declaring the privilege forfeited at the end of any year.
+     Compare _Brämer_ in III, Ergänzungshefte der Preuss.
+     Statist. Ztschr. und Mitth., 1871, No. 1.]
+
+     [Footnote 237d-2: The first fire insurance provisions or
+     regulations paid little attention to the danger of
+     over-valuation. Similarly _v. Justi_, Abh. von der Macht,
+     Glückseligkeit, etc., eines Staats. 1860, 81. Also
+     _Krünitz_, Oekonom. Encyclopædie, 1788, XIII, considers it
+     improbable that any one would have his home insured at a
+     higher than its real value. On the other hand, there were
+     formerly bitter complaints made in the United States that
+     the agents, on whom the determination of the rate of premium
+     and the control of the insurance-sum depended chiefly, were
+     led to make over-valuations in furtherance of their own
+     interests. (Mitth., 1871, 3; 1874, 95.)]
+
+     [Footnote 237d-3: If the valuation were made to depend on
+     the purchase price or on the cost of replacing or restoring
+     the damaged property, even this would be some temptation to
+     not entirely upright men. Hence the Baden law of 1840
+     expressly provides that instead of this, the selling price
+     shall be the basis; the law of 1852, § 17, the medium cost
+     of the combustible parts, after deduction made of the
+     diminution in value caused by age. The fixing of premiums in
+     the case of houses should be repeated from time to time on
+     account of wear. According to the Calenb. Grubenh. law of
+     1823, § 21, every 10 years. According to the Baden law of
+     1852, § 28, 33, and the Württemberg law of 1853, § 12, the
+     city council should examine annually in what cases a new
+     valuation was necessary. The more certainly over-insurance
+     is avoided, the less need is there of the superintendence
+     policy adapted to a rather barbarous state of insurance,
+     that only a part of the value shall be made good. The
+     Phœnix fire insurance company in Baden for the insurance
+     of movable property has reserved the right to investigate at
+     any time and to satisfy itself as to the value of the
+     insured object, and to lower the amount insured in
+     accordance with its own opinion. The provision that the
+     valuation shall be made by the authorities of the place, or
+     that it shall be approved by them is frequently found. In
+     Saxony, for instance (law of Nov. 14, 1835), the Leipzig
+     city council gives its approval when it finds the amount
+     insured in keeping with the means of the insured, and
+     entertains no suspicions as to his honesty. To what a bad
+     state of things a less liberal course leads, see in
+     _Masius_, loc. cit., 85. This indeed is only difficult in
+     large cities. It is also to be considered that it is not so
+     much the many small amounts, but the few large ones that are
+     dangerous to insurance. The Prussian scheme wanted to give
+     up the police superintendence of insurance, but to punish
+     over-insurance of more than 5 per cent. of the common value,
+     by imposing a fine equal to the amount of over-insurance on
+     the insured, the agents, and on the conductors of the
+     business. (_Jacobi_, in II. Ergänzhefte der Preuss. Statist.
+     Ztschr., 1869.) The provision that the amount paid as
+     damages for a burned house shall be immediately employed in
+     rebuilding, is to be explained in part by requisite A; in
+     part also by the same police-guardianship against presumed
+     negligence which introduced compulsory insurance.]
+
+     [Footnote 237d-4: Compare _Brügemann_, Die Mobiliar V. in
+     Preussen nach dem G. von 1837.]
+
+     [Footnote 237d-5: _Oberländer_, loc. cit. 108, calls
+     insurance without classification of risks, a "mutual
+     benevolent institution;" and one rigidly classified
+     according to the probable period of burning, "an institution
+     for the making of advances" (_Vorschuss-Anstalt._) In Baden,
+     even in 1737, there was no difference made between a massive
+     building and a wooden hut with a straw roof in the Black
+     forest. (_Rau_, Archiv., III, 324.) Here, there was in 1844
+     to 1849, an average damage by fire in houses with brick
+     roofs of 1,302 florins, with thatch roofs of 1,786 florins,
+     with shingle roofs of 2,292 florins, to say nothing of the
+     greater frequency of such damage in each succeeding class.
+     (_Rau_, Lehrbuch, II, 1, § 26, a.) In Württemberg, before
+     1843, the owners of insured personal property, in houses
+     with thatch roofs, had, in the same time, received 22 per
+     1,000 compensation for damage; in houses with brick roofs,
+     from 8 to 9 per 1,000. (_Rau_, loc. cit.) In 17 German
+     insurance companies, between 1866 and 1869, massive
+     buildings with hard roofs paid 1,003,000 thalers and
+     received 612,000 thalers; the not massive with hard roofs
+     paid 1,544,000 thalers and received 1,339,000; houses with
+     soft roofs paid 2,420,000 and received 2,792,000. (Preuss,
+     Statist. Zeitschr. 1861, 327.) Similar observations made in
+     Berne during 23 years.]
+
+     [Footnote 237d-6: While in most English insurance companies,
+     there are only three classes: common, hazardous, and doubly
+     hazardous, in Rhenish Prussian insurance companies, there
+     are seven, according to the style of building, and in each
+     class two subdivisions, according to the location.]
+
+     [Footnote 237d-7: According to an English average of 15
+     years, there is some damage from fire yearly in the
+     following classes of buildings and on the following
+     percentages:
+
+                            _Of the whole number_.
+          Match factories,         30.00
+          Lodging houses,          16.5
+          Hat makers,               7.7
+          Cloth makers,             2.6
+          Candle makers,            3.8
+          Smiths,                   2.4
+          Carpenters,               2.2
+          Oil and color dealers,    1.5
+          Book dealers,             1.1
+          Coffee houses,            1.2
+          Beer houses,              1.3
+          Bakeries,                 0.75
+          Wine dealers,             0.61
+          Small dealers in spices,  0.34
+          Eating houses,            0.86
+
+     (Quart. Rev., 1854, 23.) There is indeed a difference in the
+     intensity of these fires. For instance, in inns, there have
+     been a great many; but the damage has been for the most part
+     insignificant.]
+
+     [Footnote 237d-8: In Paris the houses insured had a value of
+     2,370,000,000 francs, but the damage from fire amounted to
+     only 0.016 per 1,000! (Dictionn. d'Econ. politique, I, 89.)
+     On an average, the premiums in France amount to 0.85 per
+     1,000. In Prussia, 1867-69 on an average: in the province of
+     Prussia, 9.46 per 1,000; Posen, 3.75; Brandenburg, Berlin
+     not included, 2.82; Pomerania, 2.52; Westphalia, 2.15;
+     Schleswig-Holstein, 2.09; Hanover, 1.99; Silesia, 1.68;
+     Saxony, 1.47; Hesse-Nassau, 1.46; the Rhine country, 1.34;
+     Sigmaringen, 0.56; city of Berlin, 0.28 per 1,000. (Preuss.
+     Statist. Zeitschr., 1871, 289.) How largely a higher
+     civilization tends to arrest the spread of fire by the
+     reason of the great facilities of rendering assistance is
+     shown by the fact that for 100 buildings totally consumed in
+     Posen, in 1837-40, there were 13.4 only injured: in 1866-69,
+     32 were injured for 100 totally consumed. In Prussian
+     Saxony, 1839-44, 34; 1867-69, 57. (loc. cit., 329.) In
+     Baden, the district called the _Seekreis_ got from the
+     fire-fund, in 1845-49, 80 per cent. more than it contributed
+     to it; the middle Rhine district contributed 37 per cent.
+     more than it received. The Bavarian Reza district, 1828-29,
+     received only 11.4 per cent. for damages, and paid 19 per
+     cent. of all premiums; the Lower Danube district, 10 and 8.8
+     per cent. (_Rau_, Lehrbuch, II, § 28, 26.) The city of
+     Leipzig contributed from 1/19 to 1/17 of the insurance paid,
+     1864-68, to the insurance companies taking risks on real
+     property in the kingdom of Saxony, and received back only
+     from 1/662 to 1/114, although its fire extinguishing
+     institutions cost, in 1870, 26,182 thalers. (Official.)]
+
+     [Footnote 237d-9: Even premium-institutions have frequently
+     very different rates for the same risk, according as they
+     fear greater or less competition, or desire to recommend
+     themselves in a new place, etc. Hence the tricks of the
+     trade with which most of them surround their tariff.]
+
+     [Footnote 237d-10: In Würtemberg, theaters, powder mills,
+     places where brick and lime are burned, porcelain factories,
+     iron-works, etc. cannot be insured at all. In
+     Calenb-Grubenh. and Bremen-Verden, shingle-roofed houses can
+     be insured only at 2/3 of their real value.]
+
+     [Footnote 237d-11: Thus, for instance, in the electorate of
+     Mark, each of the four classes of houses bears its own loss
+     alone. To the fourth class, for instance, belong smithies,
+     brick factories, and buildings with steam engines, etc. The
+     Baden law of 1852 puts the same burthen in the same place,
+     upon houses exposed to danger in a greater or lesser degree;
+     but provides for 4 classes (_Gemeindeclassen_) with
+     different rates of contribution, and assigns each _Gemeinde_
+     every year, according to the relative magnitude of the
+     losses of the previous year, to one of those classes. How
+     risky it is for large cities to confine their insurance,
+     because of the ordinarily small amount of damage to them
+     from fire, only to insurance institutions of their own, is
+     shown by the case of Hamburg in the year 1842, where three
+     joint stock insurance companies could pay only from 75 to 80
+     per cent., and the Bieber Mutual Insurance Company, only 20
+     per cent.]
+
+     [Footnote 237d-12: In the case of buildings, the greater
+     risk is generally calculated by correspondingly multiplying
+     the insurance-value, but in case of damage by fire, it is
+     simply made good.]
+
+     [Footnote 237d-13: In the insurance companies specified by
+     _Masius_, loc. cit., 176, the aggregate amount of their
+     insurance, stood to the amount necessary to cover it, by
+     means of receipts from premiums, reserve, and joint-stock
+     capital:
+
+     In the Leipzig Fire Insurance Company, as              100:1.87
+     In the Trieste Fire Insurance Company, as              100:1.80
+     In the Elberfeld Fire Insurance Company, as            100:1.19
+     In the Aix-Munich Fire Insurance Company, as           100:1.15
+     In the Cologne Colonia Fire Insurance Company, as      100:2.44
+     In the Karlsruhe Phœnix Fire Insurance Company, as     100:3.7
+     In the Berlin Fire insurance Company, as               100:6.3
+     In the Gotha, about as                                 100:2.6
+      (including the four fold after payment note)
+
+     In the same companies the amount of damage and of expense
+     for the last preceding year were, on every 100 thalers, of
+     insurance, 46 pfennigs (1/300 thalers), 44, 29, 48, 67, 55,
+     35, 42; an average of 45, that is 1½ per 1,000. Besides,
+     much depends on the degree to which the joint-stock capital
+     can be applied. Thus, for instance, in Berlin, on every
+     1,000 thalers 200 are paid in cash, and a note
+     (_Solawechsel_) given for the rest, payable in two months
+     after notice. Where the unpaid remaining stock is but a mere
+     book-debt, and may even be evaded by disclaiming the stock
+     itself, it of course affords very little security.]
+
+     [Footnote 237d-14: Compare _Volz._ Tübinger Zeitschr. 1847,
+     349 ff.]
+
+     [Footnote 237d-15: The preparatory steps towards this ideal
+     were taken long ago. Thus, for instance, the
+     personal-property insurance companies have offered premiums
+     for special merit in extinguishing fires (Calenb.-Grubenh.,
+     1814, § 35), saving things from a burning house is looked
+     after by the agents of personal property insurance
+     companies; compensation is almost universally made not only
+     for the damage done by fire, but also that caused while the
+     fire is being extinguished. The excellent fire-extinguishing
+     institutions of England are maintained by the common action
+     of the insurance companies. There have been complaints,
+     however, that they have shown a preference for insured
+     objects. (Mitth., 1874, 113.)]
+
+
+
+
+BOOK V.
+
+ON POPULATION.
+
+
+
+
+CHAPTER I.
+
+THEORY OF POPULATION.
+
+
+SECTION CCXXXVIII.
+
+INCREASE OF POPULATION IN GENERAL.
+
+That amid the thousand dangers which threaten the existence of the
+individual the species may endure, the Creator has endowed every class
+of organic beings with such reproductive power, and so much pleasure in
+propagating their kind, that if the action of these were entirely
+unrestricted, it would soon fill up the earth.[238-1] In the case of the
+human race, also, the physiological possibility of propagation has very
+wide limits.[238-2] It would be nothing extraordinary that a healthy
+pair, living in wedlock from the 20th to the 42nd year of the woman's
+life, that is, during the whole time of her full capacity to bear
+children, should rear six children to the age of puberty. This would,
+therefore, suffice to treble the population in a single generation;
+provided that all who had grown up should marry. According to
+Euler,[238-3] when the births were 5 per cent. and the deaths 2 per
+cent., the population doubled in not quite 24 years; when the increase
+was 2½ per annum, in 28 years; when 2, in 35 years, and when 1½
+per cent. in 47 years.
+
+The United States furnish us with a striking illustration of this
+doctrine, and on the grandest scale. There the natural increase of the
+white population, from 1790 to 1840, was 400.4 per cent.; that is in the
+first decade 33.9 per cent. of the population in 1790; in the second
+33.1, in the third 32.1, in the fourth 30.9, in the fifth 29.6 per
+cent.[238-4] [238-5]
+
+     [Footnote 238-1: Thus, for instance, the sturgeon can,
+     according to _Leuckart_, produce 3,000,000 eggs in a year.
+     According to _Burdach_, the posterity of a pair of rabbits
+     may be over 1,000,000 in four years; and that of a
+     plant-louse, according to _Bonnet_, over a 1,000,000,000 in
+     a few weeks. The prolificacy of a species of animals is wont
+     to be greater in proportion as the structure-material
+     (_Bildungsmaterial_) saved within a given time during the
+     course of individual life, is greater, and as material wants
+     during the embryonic period are limited; also
+     (teleologically), in proportion as to the danger the
+     individual is exposed to. Compare _Leuckart_ in _R.
+     Wagner's_ physiolog. Wörterbuch, Art. Zeugung.
+     Teleologically, _Bastiat_ says: _cette surabondance parait
+     calculée partout en raison inverse de la sensibilité, de
+     l'intelligence et de la force avec laquelle chaque espèce
+     résiste à la déstruction_. (Harmonies, ch. 16.)]
+
+     [Footnote 238-2: The researches of modern physiology make it
+     probable that an ovum is detached from the ovaries at each
+     period of healthy menstruation. (_Bischoff_, Beweis der von
+     der Begattung unabhängigen periodischen Reifung und Lösung
+     der Eier bei den Säugethieren und Menschen, 1844.) It is
+     hardly possible to ascertain how many of these ova are
+     capable of fecundation. Among the animals, on which the
+     greater number of accurate observations have been made, that
+     is in the case of horses, it has been found that, in the two
+     districts of Prussia most favorably conditioned, of 100
+     mares that had been lined, 63.3 became pregnant, and 53.5
+     gave birth to live foals; in the rest of the Prussian
+     monarchy, the births were only 46 per cent. Compare
+     _Schubert_, Staatskunde, VII, 1, 98. In the Belgian _haras_
+     (places for breeding horses), between 1841 and 1850, about
+     30 per cent. of the "leaps" proved fruitful, from 2 to 3 per
+     cent. aborted, the rest were either probably or certainly
+     unfruitful. (_Horn._, Statist. Gemälde, 171.) In the human
+     species, also, the great number of first-born generated in
+     the first weeks of marriage, bears witness to a high degree
+     of procreative susceptibility.
+
+     On the other hand, the healthy male semen ejected during a
+     single act of coition contains innumerable germs, a very few
+     of which are sufficient to produce fecundation. (_Leuckart_,
+     loc. cit, 907.) According to _Oesterlen_, Handbuch der
+     medicischen Statistik, 1865, 196, from 10 to 20 per cent. of
+     all marriages were childless. In the United Kingdom, _Farr_,
+     report on the Census of 1851, estimated that in a population
+     of 27,511,000, there were 1,000,000 childless families, when
+     the term is allowed to embrace widows and widowers as well
+     as married couples.]
+
+     [Footnote 238-3: See the exhaustive table in _Euler_,
+     Mémoires de l'Académie de Berlin 1756, in _Süssmilch_,
+     Göttl. Ordnung, I, § 160. Bridge has constructed the
+     following formula:
+
+     Log. A = Log. P + n x Log.(1+(m-b)/mb).  Here P stands for
+     the actually existing population, 1/m = the ratio between
+     the annual mortality and the number of the living, 1/b, the
+     ratio of the number of annual births to the number of the
+     living, n the number of years, A, the population at the end
+     of three years, the quantity sought for.]
+
+     [Footnote 238-4: _Tucker_, Progress of the United States,
+     89, ff. 98. Here deduction is already made of immigrants and
+     their posterity, who after subtracting the loss by
+     emigration back to the old country, amounted to over
+     1,000,000. It probably amounted to more yet. If, as
+     _Wappäus_ does (Bevölekerungsstatistik, 1859, I, 93, 122
+     ff.), we calculate the rate of increase per annum, we have
+     an average during the first decade of 2.89, during the
+     second of 2.83, the third of 2.74, the fourth of 2.52, the
+     seventh of 2.39, the eighth (1860-70) of probably 2.25 per
+     cent. On the still greater ratio of increase in earlier
+     times, see _Price_, Observations on reversionary Payments,
+     1769, 4 ed. 1783, I, 282 seq., I, 260.
+
+     It was nothing unheard of to see an old man with a living
+     posterity of 100. (_Franklin_, Observations concerning the
+     Increase of Mankind, and the Peopling of New Countries,
+     1751.) It is said that in the region about Contendas, in
+     Brazil, there were on from 70 to 80 births a mortality of
+     from 3 to 4 per annum (how long?), and an unfortunate birth
+     (_unglücklichen_) was scarcely ever heard of. Mothers 20
+     years of age had from 8 to 10 children; and one woman in the
+     fifties had a posterity of 204 living persons. (_Spix und
+     Martius_, Reise III, 525).]
+
+     [Footnote 238-5: Immense increase of the Israelites in
+     Egypt. (Genesis 46, 27; Numbers, 1.)]
+
+
+SECTION CCXXXIX.
+
+LIMITS TO THE INCREASE OF POPULATION.
+
+There is certainly one limit which the increase of no organic being can
+exceed: the limit of the necessary means of subsistence. But, so far as
+the human race is concerned, this notion is somewhat more extensive,
+inasmuch as it embraces besides food, also clothing, shelter, fuel, and
+a great many other goods which are not, indeed, necessary to life, but
+which are so considered.[239-1] We may illustrate the matter by a simple
+example in the rule of division. If we take the aggregate of the means
+of subsistence as a dividend, the number of mankind as divisor; then the
+average share of each is the quotient. Where two of these quantities are
+given, the third may be found. Only when the dividend has largely
+increased can the divisor and quotient increase at the same time
+(prosperous increase of population). If, however, the quotient remains
+unchanged, the increase of the divisor can take place only at the
+expense of the quotient (proletarian increase of population).[239-2]
+Hence it is to be expected that the quantity of the means of subsistence
+being given and also the requirement of each individual, the number of
+births and the number of deaths should condition each other. Where, for
+instance, the number of church livings has not been increased, only as
+many candidates can marry as clergymen who held such livings have died.
+The greater the average age of the latter is, the later do the former
+marry, in the average, and _vice versa_. And so, in the case of whole
+nations, when their economic consumption and production remain
+unaltered.[239-3] A basin entirely filled with water can be made to
+contain more only in case it is either increased itself, or a means is
+found to compress its contents. Otherwise as much must flow out on the
+one side as is poured in on the other.
+
+And so, everything else remaining stationary, the fruitfulness of
+marriages must, at least in the long run, be in the inverse ratio of
+their frequency. (See § 247.)[239-4] [239-5]
+
+     [Footnote 239-1: When it is known that, in the Hebrides,
+     one-third of all the labor of the people has to be employed
+     in procuring combustible material (_McCulloch_, Statist.
+     Account, I, 319), it will no longer excite surprise that,
+     according to Scotch statistics, some parishes increase in
+     population after coal has been found in them, and others
+     decrease when their turf-beds are exhausted.]
+
+     [Footnote 239-2: Compare _Isaias_, 9:3. According to
+     _Courcelle-Seneuil_, Traité théorique et pratique d'Economie
+     politique, I, 1858, the _chiffre nécessaire de la population
+     égal à la somme des revenus de la société diminuée de la
+     somme des inégalités de consommation et divisée par le
+     minimum de consommation_: P=(R-J)/M.]
+
+     [Footnote 239-3: Thus _Süssmilch_, Göttliche Ordnung in den
+     Veränderungen des menschlichen Geschlechts, 1st ed., 1742,
+     4th ed., 1775, I, 126 ff., assumes that one marriage a year
+     takes place, on from every 107 to every 113 persons living.
+     On the other hand, 22 Dutch towns gave an average of 1 in
+     every 64. This abnormal proportion is very correctly
+     ascribed by _Malthus_, Principles of Population, II, ch. 4,
+     to the great mortality of those towns: viz., a death for
+     every 22 or 23 persons living, while the average is 1:36.
+     The Swiss, _Müret_, (in the Mémoires de la Société
+     économique de Berne, 1766, I, 15 ff.), could not help
+     wondering that the villages with the largest average
+     duration of life should be those in which there were fewest
+     births. "So much life-power and yet so few procreative
+     resources!" Here too, _Malthus_, II, ch. 5, solved the
+     enigma. The question was concerned with Alpine villages with
+     an almost stationary cow-herd business: no one married until
+     one cow-herd cottage had become free; and precisely because
+     the tenants lived so long, the new comers obtained their
+     places so late. Compare _d'Ivernois_, Enquête sur les Causes
+     patentes et occultes de la faible Proportion de Naissances à
+     Montreux: yearly 1:46, of the persons living, while the
+     average in all Switzerland was 1:28.
+
+     In France according to _Quételet_, Sur l'Homme, 1835, I, 83
+     ff., there was:
+
+     ===============+===================+============+================
+                    |  _One marriage_   | _Children_ | _One death_
+          _In_      |     _a year_      |    _to a_  |   _yearly _
+                    |   _for every_     | _marriage_ | _for every_
+     ---------------+-------------------+------------+----------------
+      4 Departments |110-120 inhabitants|    3.79    |35.4 inhabitants
+     15      "      |120-130      "     |    3.79    |39.2      "
+     23      "      |130-140      "     |    4.17    |39.0      "
+     18      "      |140-150      "     |    4.36    |40.6      "
+     10      "      |150-160      "     |    4.43    |40.3      "
+      9      "      |160-170      "     |    4.48    |42.7      "
+      6      "      |170 and more "     |    4.48    |46.4      "
+     =================================================================
+
+     The two departments of Orne and Finisterre present a very
+     glaring contrast: in the former, one birth per annum on
+     every 44.8 (1851 = 51.6), a marriage on every 147.5, a death
+     on every 52.4 (1851 = 54.1) living persons; in the latter,
+     on the contrary, on every 26 (1851 = 29.8), 113.9 and 30.4
+     (1851 = 34.2). In Namur, the proportions were 30.1, 141,
+     51.8; in Zeeland, 21.9, 113.2, 28.5. (_Quételet_, I, 142.)
+     The Mexican province, Guanaxuato, presents the most
+     frightful extreme: one birth per annum on every 16.08 of the
+     population living, and one death in every 19.7. (_Quételet_,
+     I, 110.)]
+
+     [Footnote 239-4: Compare even _Steuart_, Principles, I, ch.
+     13. _Sadler_, Law of Population, 1830, II, 514:
+
+     =======================================+=============+===========
+                                            |_Marriages_  |_Children_
+                                            | _per annum_ |_on every_
+                                            | _on every_  |  _100_
+                                            | _10,000_    |_Marriages_
+                                            |_inhabitants_|
+     ---------------------------------------+-------------+-----------
+
+        In the purely Flemish provinces     |             |
+          of Belgium                        |     128     |  481
+        In the purely Wallonic provinces    |             |
+          of Belgium                        |     139     |  448
+        In the mixed provinces of Belgium   |     152     |  425
+        In Holland                          |     148     |  476
+        In Lombardy                         |     166     |  489
+        In Bohemia                          |     173     |  413
+        In the kingdom of Saxony            |     170     |  410
+     =======================================+=============+===========]
+
+     [Footnote 239-5: Compare _Horn_, Bevölkerungswissenschaftliche
+     Studien, I, 162 ff., 191, 252 ff. In most countries, there
+     is a much larger number of children to a marriage in the
+     rural districts than in the cities; but at the same time,
+     marriages are much less frequent there. In Saxony, however,
+     where the cities show a greater marital productiveness, the
+     rural districts present a large number of marriages. Of the
+     10 countries compared by _Wappäus_, II, 481 ff., only
+     Prussia and Schleswig are exceptions to the rule.]
+
+
+SECTION CCXL.
+
+INFLUENCE OF AN INCREASE OF THE MEANS OF SUBSISTENCE.
+
+The sexual instinct and the love for children are incentives of such
+universality and power, that an increase of the means of subsistence is
+uniformly followed by an increase in the numbers of mankind. _Partout,
+où deux personnes peuvent vivre commodément, il se fait un mariage._
+(_Montesquieu._) Thus after a good harvest, the number of marriages and
+births is wont to considerably increase; and conversely to diminish
+after bad harvests.[240-1] [240-2] [240-3] In the former case, it is
+rather hope than actual possession which constitutes the incentive to
+the founding of new families. Hence the greatest increase is not found
+in connection with the absolutely lowest price of corn, but with those
+prices which present the most striking contrast to those of a previous
+bad year.[240-4]
+
+The introduction of the potato has promoted the rapid increase of
+population in most countries. Thus, the population of Ireland in 1695,
+was only 1,034,000; in 1654, when the cultivation of the potato became
+somewhat more common it was 2,372,000; in 1805, 5,395,000; in 1823,
+6,801,827; in 1841, 8,175,000. In 1851, after the fearful spread of the
+potato-rot it fell again to 6,515,000.[240-5] In general, every new or
+increasing branch of industry, as soon as it yields a real net product
+is wont to invite an increase of population. Machines, however, have not
+this effect only when they operate to produce rather a more unequal
+division of the national income than an absolute increase of that
+income.[240-6]
+
+     [Footnote 240-1: That rich food directly increased
+     prolificacy is proved from the fact that, for instance, our
+     domestic animals are much more prolific than wild ones of
+     the same species. Compare _Villermé_, in the Journ. des
+     Economistes VI, 400 ff. The months richest in conceptions
+     fall universally in the spring, and again in the pleasant
+     season immediately following the harvest. On the other hand,
+     during the seasons of fast in the Catholic church the number
+     of cases of conception is below the average. (Jour. des
+     Econ., 1857, 808).]
+
+     [Footnote 240-2: Thus the annual mean number of marriages
+     amounted to:
+
+     =============================================
+                   | _Between 1841_ |  _In 1847_
+                   |  _and 1850._   |   _alone._
+     --------------+----------------+-------------
+     In Saxony,    |     15,505     |    14,220
+     In Holland,   |     22,352     |    19,280
+     In Belgium,   |     28,968     |    24,145
+     In France,    |    280,330     |   249,797
+     =============================================
+
+     _Horn_, loc. cit. I, 167. In the governmental district
+     (_Regierungsbezirke_) of Düsseldorf, there was in the years
+     of scarcity, 1817 and 1818, one marriage for every 134 and
+     137 souls; on the other hand, in 1834 and 1835, in every 103
+     and 105. (_Viebahn_, I, 120 seq.) In England, the variations
+     in the yearly price of corn are reflected in the variations
+     in the number of yearly marriages. Thus, in 1800, 114
+     shillings per quarter; 1801, 122 shillings; 1802 (Peace of
+     Amiens), 70 shillings; 1803, 58 shillings. The number of
+     marriages in the four years respectively was 69,851, 67,288,
+     90,396, 94,379. (_Porter_, Progress of the Nation, III, ch.
+     14, 453.)
+
+     Similarly in Germany, in 1851, the conclusion of peace
+     increased the number of marriages, and the scarcity of 1817
+     diminished it. In Prussia, in 1816, there was one marriage
+     for every 88.1 of the population; in 1828, for every 121.4;
+     in 1834 (origin of the great Zollverein), for every 104; in
+     1855, for every 136.4; in 1858 (hope of a new era), in every
+     105.9. (_v. Viebahn_, Statistik des Zollvereins II, 206.)
+
+     In Austria, the price of rye was:
+
+     ==============================================
+               |  _Per Metze._  |   _No. of_
+               |              | _Marriages._
+     ----------+--------------+--------------------
+     In 1851,  | 2.47 florins |  336,800
+     In 1852,  | 2.11   "     |  316,800
+     In 1853,  | 3.38   "     |  283,400
+     In 1854,  | 4.36   "     |  258,000
+     In 1855,  | 4.43   "     |  245,400 (_Czörnig._)
+     ==============================================
+
+     On Sweden, see Wargentin in _Malthus_, II, ch. 2.
+
+     The decreased number of births in consequence of a bad
+     harvest, and _vice versa_, appears of course only during the
+     following calendar year. Thus, in 1847, as compared with the
+     average of the years 1844 and 1845, there were fewer
+     children born in England by 4 per 1,000, in Saxony by 7 per
+     1,000, in Lombardy by 59, in France by 63, in Prussia by 82,
+     in Belgium by 122, in Holland by 159 per 1,000. (_Horn_, I,
+     239 ff.) In Germany, the conscription-years corresponding to
+     the scarcity time, 1816-17, gave a _minus_ of 25 per cent.
+     in many places below the average. (_Bernouilli_,
+     Populationistik, 219.) In the case of marriage, the relative
+     increase or decrease is still more characteristic, so far as
+     our purpose is concerned, than the absolute increase or
+     decrease. Thus in Belgium, for instance, against 1,000
+     marriages dissolved by death, there were, in 1846, only 971
+     new ones contracted, and in 1847 only 747; while in 1850
+     there were 1,500. The falling off in Flanders alone was
+     still greater. Thus, in 1847, there were only 447 marriages
+     contracted for 1,000 dissolved. (_Horn_, I, 170 ff.)
+     However, _Berg_, using Sweden as an illustration, rightly
+     calls attention to the fact, that the variations in the
+     number of marriages and births is determined in part by the
+     number of adults, that is, of the number of births 20 and
+     more years before. Compare _Engel's_ Statist. Zeitschr.,
+     1869, 7.]
+
+     [Footnote 240-3: Sometimes, a sudden increase in the
+     frequency of marriages may have very accidental and
+     transitory causes. Thus, for instance, in France in 1813,
+     when the unmarried were so largely conscripted, the number
+     of marriages rose to 387,000, whereas the average of the
+     five previous years was 229,000. (_Bernouilli_,
+     Populationistik, 103.)]
+
+     [Footnote 240-4: Thus, for instance, in nearly all countries
+     affected by the movement of 1848, there were, during the
+     last months of that year, an unusually large number of
+     conceptions. (_Horn_., I, 241 seq.) According to
+     _Dieterici_, Abh. der Berliner Akademie, 1855, 321 ff.,
+     there was one birth a year for the number of persons living.
+
+     ========================================================
+                 | _Ten years' average._ |   _1849 alone._
+     ------------+----------------------------+--------------
+     In France,  |         36.19         |       35.79
+     In Tuscany, |         24.42         |       22.82
+     In Saxony,  |         24.51         |       23.08
+     In Prussia, |         25.5          |       23.62
+     ========================================================
+
+     The great majority of men at that time believed all they
+     liked to believe.]
+
+     [Footnote 240-5: _Marshall_, Digest of all Accounts, I, 15.
+     _Porter_, I, ch. I, 9.]
+
+     [Footnote 240-6: _Wallace_, in this respect, places industry
+     far behind agriculture. (On the Numbers of mankind in
+     ancient and modern Times.) The county of Lancashire had, in
+     1760, that is shortly before the introduction of the great
+     machine industry, 297,000 inhabitants; in 1801, 672,000; in
+     1831, 1,336,000; in 1861, 2,490,000. Saxony has, in almost
+     every place, a relatively large number of births in
+     proportion as in any locality, commerce and industry
+     preponderate over agriculture, and _vice versa_. See
+     _Engel_, Bewegung der Bevölkerung im K. Sachsen, 1854. But
+     this should not be generalized into a universal law. For
+     instance, Prussia and Posen have an average number of births
+     greater than that of the Rhine country and Westphalia. (_v.
+     Viebahn_, Statistik des L. V, II, 222.)]
+
+
+SECTION CCXLI.
+
+EFFECT OF WARS ON POPULATION.
+
+We may now understand why it is that only those wars which are
+accompanied by a diminution of the sources of the means of support
+decrease population. The loss in the numbers of mankind produced by
+wars, hardships, etc., would, as a rule, be readily made up for by
+increased procreation.[241-1] Thus, for instance, in Holland, the long
+Spanish war permitted an increase of the population for the reason that
+the national wealth increased at the same time; while the short war with
+Cromwell, which curtailed commerce, caused 3,000 houses in Amsterdam
+alone to remain empty.[241-2] In England and Wales, the population
+increased during the most frightful war of modern times, from 8,540,000
+in 1790, to over 12,000,000 in 1821; in France, from, probably,
+26,000,000 or 27,000,000 in 1791, to 29,217,000 in 1817. England,
+indeed, was itself never the seat of war, and its commerce was increased
+by the war in some directions as much as it was diminished by it in
+others. France's own territory was devastated only in the first and in
+the last years of the war. But the Revolution had, on the whole, once
+the storms of the Reign of Terror were over, not only more equally
+divided the means of subsistence in France, but it had developed them in
+a higher degree.[241-3] [241-4]
+
+It cannot even be unconditionally predicated of emigration, that it
+hinders the increase of population. As soon as people have begun to
+calculate upon emigration, as a resort for themselves in case of
+distress, or upon the emigration of others, by which they would be left
+a larger field for action at home, a number of marriages is contracted
+and a number of children born; which would otherwise not have been the
+case. Most men, especially when young and enamoured, hope for the
+realization of all their wishes. Favorable chances, open to a great
+number of men alike and which every one thinks himself competent to
+calculate, are commonly over-estimated by the majority.[241-5] (See §
+259.)
+
+     [Footnote 241-1: The war of 1870-71 cost Germany 44,890
+     lives. (Preuss. Statist. Ztschr., 1872, 293.) This number is
+     not quite 20 per cent. of the excess of births (794,206)
+     over deaths (563,065) in Prussia in the year 1865. On the
+     other hand, in from 1856 to 1861 there were 10,000 cases of
+     murder and manslaughter in all Europe, Turkey excepted.
+     (_Hausner_, Vergl. Statistik, I, 145.) About the end of the
+     last century, it was estimated that about 1,000,000 children
+     were born annually in France. (_Necker_, Administration des
+     Finances, I, 256.) Of these, about 600,000 outlived their
+     18th year. (_Peuschet_, Essai de Statistique, 31.) There
+     were, annually, about 220,000 marriages. Hence the number of
+     the unmarried was increased annually by 80,000 young men,
+     who, according to _Peucshet_ (32), amounted to over
+     1,450,000. According to this, the number of recruits, per
+     annum, might amount to hundreds of thousands without causing
+     any appreciable diminution in the number of births and
+     marriages. Compare _Malthus_, Principle of Population, II,
+     ch. 6. On the other hand, long continued wars have the
+     effect of keeping the men physically strongest from
+     marriage, and so to deteriorate the race.]
+
+     [Footnote 241-2: Richesse de Hollande, I, 149. During the
+     Amsterdam commercial crisis, from 1795 to 1814, there were
+     for every 4 births an average of 7 deaths. So that the
+     population, in 1795, was still 217,000, and in 1815, only
+     180,000. (_Bickes_, Bewegung der Bevölkerung Anhang, 28.)]
+
+     [Footnote 241-3: On the other hand, the population of East
+     Prussia, between 1807 and 1815 diminished 14 per cent. (_v.
+     Haxthausen_, Ländl. Verfassung der Preuss. Monarchie, I,
+     93.) The battles of the Seven Years' War are said to have
+     consumed 120,000 Russians, 140,000 Austrians, 200,000
+     Frenchmen, 160,000 Englishmen, Hanoverians, etc., 25,000
+     Swedes, 28,000 of the troops of the empire, and 180,000
+     Prussians. Yet the population of Prussia fell off 1,500,000.
+     (_Frédéric_, Œuvres posthumes, IV, 414; Preuss. Gesch.
+     Friedrich's M., II, 349.) During the Thirty Years' War, the
+     population of Bohemia fell from 3,000,000 to 780,000.
+     (_Mailath_, Gesch. von Oesterr, III, 455.) Württemberg,
+     according to the military recruiting lists had a population,
+     in 1622, of 300,000 inhabitants. (_Spittler_, Werke, XII,
+     34.) In 1641, the population was only 48,000; according to a
+     promotion-speech of _J. B. Andreä_. But between 1628 and
+     1650, more than 58,000,000 florins were lost by war
+     contributions, and about 60,000,000 florins by plunder;
+     about 36,000 private houses were in ruins. (_Spittler_,
+     Württ. Gesch., 254.) On Alsace, Freisingen and Göttingen,
+     see _Londorp_, Bellum sexenn., II, 563; _Zschocke_,
+     Bayerische Geschichte, III, 302; _Spittler_, Hanov. Gesch.,
+     II, 37 ff., 114. On Germany generally, see _R. F. Hanser_,
+     Deutschland nach dem dreissigjährigen Kriege, 1862. However,
+     many estimates of the diminution of the population are
+     exaggerated, because it has not been considered that a great
+     part of the men who disappeared in one place fled to
+     another, for the time being more secure. Compare _Kius_ in
+     _Hildebrand's_ Jahrb., 1870, I ff.
+
+     The population of Massachusetts increased 8,310 yearly,
+     before the War of Independence; during the war, only 1,161,
+     although the enemy scarcely ever entered the country.
+     (_Ebeling_, Gesch. und Erdbeschreib. der V. Staaten I, 236.)
+     Russia had a mortality during the war years, 1853-55, of
+     2,272,000, 2,148,000, and 2,541,000; in the years of peace
+     previous, 2,000,000 at most.]
+
+     [Footnote 241-4: Besides the mere loss of men, war operates
+     destructively on production, since it affects especially the
+     most productive classes as to age, while pestilence, famine,
+     etc., carry off children, old people, and the feeble. Hence,
+     a people's public economy recovers more readily from the
+     last named misfortune than from war.]
+
+     [Footnote 241-5: Compare _Giov. Botero_, Della Cause della
+     Grandezza della Città, L. II, and Ragion di Stato, VIII, 95;
+     where colonization is compared to the swarming of bees. _W.
+     Raleigh_, Discourse of War in general, Works VIII. 257 ff.
+     Similarly _Child_, Discourse of Trade, 371 ff. _Ustariz_,
+     Teoria y Practica del Commercio, 1724, ch. 4. _Franklin_,
+     Observations on the Increase of Mankind, which reminds one
+     of the continued growth of polyps.]
+
+
+SECTION CCXLII.
+
+COUNTER TENDENCIES TO THE INCREASE OF POPULATION.
+
+The extension of economic production is always a labor; the surrender of
+one's ordinary means of subsistence to new comers, a sacrifice; but, on
+the other hand, the procreation of children is a pleasure. Hence it
+seems to be incontestably true that the powers of increase of
+population, considered from an entirely sensuous point of view, tend to
+go beyond the bounds of the field of food. Malthus gave expression to
+this fact by saying that population had a tendency to increase in a
+geometrical progression, but the means of subsistence, even under the
+most favorable conditions, only in an arithmetical progression.[242-1]
+If the word "tendency" be correctly understood in the sense in which
+Malthus employed it, so that the reality appears as the product of
+several and partly opposite tendencies,[242-2] the first half of his
+allegation can scarcely be contested.[242-3] If a father has three sons,
+and each of the three three in turn, the love of procreation and the
+power of procreation, all being in the normal condition of health, are
+precisely three times as great in the second generation as in the first,
+and nine times as great in the third, etc. The second half of Malthus's
+principle is more open to doubt. If it be true, as has been asserted,
+that man's means of subsistence consist solely of animals and plants,
+and these, as well as man, increase in a geometrical ratio, and usually
+even with a much larger multiplier, yet it is here, surprisingly enough,
+overlooked that their natural increase is interrupted by the consumption
+of them by man. On the other hand, it is true that even raw material, by
+means of more skillful technic processes (§ 134, 157), and the values by
+which man ennobles them, may always increase in a greater ratio than a
+merely arithmetical one. (§ 33).[242-4] But, that, in the long run, the
+means of subsistence should keep pace with the extreme of sensuous
+desire and of physiological power, is utterly incredible. Hence, the
+latter tendency is limited by others.
+
+A. And indeed, firstly, by repressive counter-tendencies. As soon as
+there is a larger population in existence than can be supported, the
+surplus population must yield to a mournful necessity; in a favorable
+case, to that of emigration, but usually to hunger, disease and misery
+generally.
+
+"The earth," says Sismondi, "again swallows the children she cannot
+support." It is the weakest especially who are elbowed off the bridge of
+life, over which we pass from birth to the normal death from old age,
+because there is not room enough on it for all. Hence the frightful
+mortality among the poorer classes and in childhood. Now it is the
+absence of a healthy habitation,[242-5] or of proper clothing, or, in
+the case of children, of rational superintendence[242-6] which sows the
+germs of a thousand diseases; and now the absence of proper care, rest
+etc., which intensifies these diseases. Every bad harvest is wont, when
+its consequences are not alleviated by a high and healthy civilization,
+to increase mortality. (§ 246, 9). Thus, in Sweden, during the second
+half of the 18th century, the average yearly mortality was = 1:39-40. On
+the other hand, in the bad year 1771 = 1:35.7; 1772 = 1:26.7, and in
+1773, as an after consequence, 1:19.3. In this last, although it was a
+fertile year, there were only 48 births to every 100 deaths.[242-7]
+Among nations low down in civilization, the repressive counter tendency
+may assume a very violent character. How many cases of murder, human
+sacrifice, and even war, have been occasioned by over-population and
+famine.
+
+B. Secondly, by preventive counter tendencies.[242-8] The person who
+believes himself unable to support children refrains from begetting
+them. This, we may call one of the most natural of duties. We might even
+say that the person who begets a child which he knows he is not in a
+condition to support, is guilty of a grievous sin against civil society,
+and of a still more grevious one against his poor child. Strange! To
+beget a child with countless wants, with an immortal soul! That is
+certainly an act the most pregnant with consequences which any ordinary
+man can perform in his life; and yet how thoughtlessly it is performed
+by the majority!
+
+This counter-tendency is to be found only in the case of man. Plants and
+animals yield to the sexual instinct regardless of everything.[242-9]
+Where there is no question whatever of having food enough to support
+children, as is the case with the better-to-do classes, the dread of
+losing the decencies of life, or of "losing caste," acts as a
+preventive[242-10] [242-11] to the founding a family, or increasing the
+numbers of one. Unfortunately, abstinence from the procreation of
+children may be exercised not only in accordance with the moral
+law,[242-12] but also, in contravention of it.[242-13] There is a
+necessary connection between human reason and human freedom and the
+possibility of misusing them. And it is certainly the inevitable fate of
+man either to place a morally rational check on the sexual impulse, or
+to be forcibly held within the limits of the means of subsistence, since
+they cannot be over-stepped by him--through the agency of vice and
+misery.[242-14] [242-15]
+
+     [Footnote 242-1: Principle of Population, I, ch. I. Adam
+     Smith also implicitly held the view that the demand for the
+     means of subsistence is always in advance of them. Wealth of
+     Nat., I, ch. II, pref. and P. I.]
+
+     [Footnote 242-2: This may be represented by what physicists
+     call the "parallelogram of forces." Compare _Senior_,
+     Outlines, 47. _Malthus'_ own explanation of "tendency," in
+     his letter at the end of _Senior_, Two Lectures on
+     Population, 1829.]
+
+     [Footnote 242-3: On the inaccuracy of the expression,
+     "geometrical progression," in the present case, see _Moser_,
+     Gesetze des Lebensdauer, 1839, 132.]
+
+     [Footnote 242-4: _Weyland_, Principles of Population and
+     Production, 1816, 25 ff.]
+
+     [Footnote 242-5: In Paris the mortality is greater in the
+     _arrondissements_ in proportion to their poverty, of which
+     the relative numbers of untaxed dwellings afford a
+     criterion. According to this, between 1822 and 1826,
+
+     =========================================================
+         _The       | _Had a yearly mortality |  _Locations
+     Arrondissement_|    of  1 in every_      | non imposées._
+     ---------------+-------------------------+---------------
+         II,        |     71 of population.   |     0.07
+        III,        |     67    "             |     0.11
+          I,        |     66    "             |     0.11
+         IV,        |     62    "             |     0.15
+         XI,        |     61    "             |     0.19
+         VI,        |     58    "             |     0.21
+          V,        |     64    "             |     0.22
+        VII,        |     59    "             |     0.22
+          X,        |     49    "             |     0.23
+         IX,        |     50    "             |     0.31
+       VIII,        |     46    "             |     0.32
+        XII,        |     44    "             |     0.38
+     =========================================================
+
+     _Villermé_, in the Journal des Econ., Novbr. 1853. The
+     average house-rent in _arrondissement_ II, amounted to 605
+     francs per annum; in III, to 426; in I, to 498; in IX, to
+     172; in VIII, to 173; in XII, to 148 francs. Doctor Holland
+     divided all the streets in Manchester into three classes,
+     and each class, in turn, into three sub-classes, according
+     to the qualities of the dwellings. The yearly mortality in I
+     a was 1:51; in I b = 1:45; I c = 36; II a = 1:55; II b =
+     1:38; III c = 1:25. (Report of Inquiry into the State of
+     large Towns and Populous Districts, 1843.)]
+
+     [Footnote 242-6: In Prussia, the Jewish population, between
+     1822 and 1840, increased 34½ per cent.; the Christians
+     only 28½ per cent.; although among the Jews there was
+     only one marriage a year in every 139, and one birth in
+     every 28; among the Christians, in every 112 and 25. This is
+     accounted for, mainly by the favorable circumstances that
+     Jewish mothers leave their homes seldomer to work outside,
+     and thereby devote more attention, even in the lower
+     classes, to the care of their children.]
+
+     [Footnote 242-7: _Wappäus_, Allg. Bevölkerungsstatistik, I,
+     315. In Thurgau, in 1815, the mortality was = 2,143, in 1817
+     = 3,440; in Luzerne, in 1820 = 1,543, in 1817 = 3,511.
+     (_Bernouilli_, Populationistik, 219.) And so in London
+     between 1601 and 1800, when the five dearest and five
+     cheapest years of each decade are taken together, the
+     aggregate mortality in the dearest was 1,971,076, in the
+     cheapest, 1,830,835. (_Farr_, in the Statist. Journal, 1846,
+     163 ff.) The rule did not apply to the time 1801-1820; but
+     it did again to the time 1821-1840 (l. c., 174). Compare
+     _Messance_, Recherches sur la Population, 311; _Roscher_,
+     Kornhandel und Theuerungspolitik, 54 ff. When scarcity
+     continues a longer time, the mortality sometimes decreases
+     on account of the largely diminished number of small
+     children. In Lancashire, the number of deaths during the
+     commercial crisis, 1846-47, was 36 per cent. greater than
+     the average of the three last preceding years; in 1857-8 it
+     was 11.9 per cent. greater. (_Ausland_, 1862, No. 44.)]
+
+     [Footnote 242-8: _Malthus_ uses the word "preventive check,"
+     while he calls the repressive counter-tendencies "positive."
+     _R. Mohl_, Polizeiwissenschaft, I, 88, speaks of preventive
+     and destructive causes. Anteriorly and subsequently
+     operating causes. (_Knapp_).]
+
+     [Footnote 242-9: Hence the infinite productiveness of
+     irrational organisms is limited only by their mutual
+     struggle for the means of support. That which cannot live
+     there dies. "In this case there can be no artificial
+     increase of food, and no prudential restraint from
+     marriage." (_Darwin_, Origin of species, 4 ed. 1866, 73.)
+     Compare _B. Franklin_, Observations concerning the Increase
+     of Mankind, § 21. _Lamennais_, indeed, asserts that no plant
+     and no animal takes away food from any other; that the earth
+     has room for all!]
+
+     [Footnote 242-10: The rule that population tends to extend
+     everywhere as far as the means of subsistence will permit,
+     _Sismondi_, N. Principes, VII, ch. 3, has taken occasion to
+     ridicule, basing himself on the example of the Montmorency
+     family. This family has, notoriously, always lived in
+     superabundance, and is, notwithstanding, on the verge of
+     extinction. _Sismondi_ here forgets the relativity of the
+     idea "means of subsistence." Persons occupying an exalted
+     social position not only think that they want more in this
+     respect, but they are wont in forming marriage contracts to
+     use the greatest and frequently exaggerated caution. Hence
+     it is that families of this rank become, relatively
+     speaking, frequently extinct; and, moreover, such a fact is
+     here most frequently taken notice of. _Sadler_, Law of
+     Population, 1830, infers from the frequent extinction of
+     English noble families, that wealth leads to sterility; and,
+     on the other hand, poverty (but not famine!) to prolificacy;
+     and _Doubleday's_ (True Law of Population, 12 ff.)
+     suggestion, in explanation hereof, that over-fed animals and
+     over-manured plants are sterile, as ably refuted in the
+     Edinburg Rev., LI. It is there shown that the marriages of
+     the English peers are fruitful above the average; that their
+     extinction is partly due to the fact that the younger sons
+     seldom married, and that hence there is a lack of collateral
+     relations. But, in great part, such extinction is only
+     apparent; since such a family is said to be extinct when
+     only the male stem is extinct. The French nobility, from the
+     9th to the 11th century, continually increased in number.
+     After this, the succession of females and cases of
+     extinction became more frequent, because the nobility, in
+     order to keep their estates together, began to not desire
+     many sons. _Sismondi_, Hist. des Français, V, 182. Compare
+     _Benoiston de Châteauneuf_, De la Durée des Familles nobles
+     en France, in the proceedings of the Académie des Sciences
+     morales et politiques, II, 792 ff. Besides, between 1611 and
+     1819, 763 English baronet families became actually extinct,
+     653 continued to exist, and 139 had been raised to the
+     peerage; an average of from 3 to 4 peer families became
+     extinct yearly. (Statist. Journal, 1869, 224.) There were,
+     about 1569 2,219 Venetian _nobili_; in 1581, 1,843 (_Daru_,
+     VI, 240 ff.); in Addison's time (1705), only 1,500. On the
+     decrease of the Roman patricians, see _Dionys._, Hal., I,
+     85; _Tacit._, Ann., XI, 25; on that of the Spartan knights:
+     _Clinton_, Fasti Hellenici, II, 407 ff.; of the _ehrbaren
+     Geschlechter_, at Nürnberg: _Hegel_, N. Stadtchroniken,
+     1862, 214. Compare, also, Westminster Rev., Oct., 1849.]
+
+     [Footnote 242-11: How, in England, not only many
+     distinguished persons, but also their servants, are kept
+     from marriage in this way, because they are sure of not
+     being able to satisfy the wants of their bachelorhood as
+     fathers of families, see in _Malthus_, P. of P., II, ch. 8.
+     A description of the general misery which would result if
+     all men consumed only that which was physically
+     indispensable, in _Senior_, Outlines, 39.]
+
+     [Footnote 242-12: See _Bastiat's_ beautiful words, in which
+     he characterizes the holy ignorance of children, the modesty
+     of young maidens, the severity of public opinion, etc., as a
+     law of limitation: (Harmonies, 437 seq.)]
+
+     [Footnote 242-13: Compare _Proudhon_, Contradictions, ch.
+     13.]
+
+     [Footnote 242-14: That want of employment or of business has
+     rather a preventive tendency, see _Malthus_, Principle of
+     Population, VII, ch. 14.]
+
+     [Footnote 242-15: _Malthus_, P. of P., II, ch. 13. I
+     formerly called this natural law by the name of the
+     investigator who earned the largest share of scientific
+     merit in connection therewith. It cannot, indeed, be said,
+     that he was the first to observe it. Compare even
+     _Machiavelli_, Discorsi (between 1515 and 1518), II, 5. And
+     so _Giovanni Botero_ taught that the number of the
+     population depended not so much on the number of
+     _congiungimenti_ so much as on the rearing of children.
+     (Ragion di Stato, 1592, VII, 93 ff.) The _virtù generativa
+     degli uomini_, which is always the same, is found face to
+     face with the _virtù nutritiva delle citta_. The former
+     would continue to operate _ad infinitum_, if the latter did
+     not limit it. The larger a city is, the more difficult it is
+     to provide it with the means of subsistence. In the last
+     instance, the slave-sales of Guinea, the cannibalism of the
+     Indians, the robber-system of the Arabians and the Tartars,
+     the migration of nations, crimes, litigation, etc., are
+     traced back to the narrowness of the means of subsistence.
+     (Delle Cause della Grandezza delle Città, 1598, Libr. III.)
+     Sir Walter Raleigh (ob. 1618), was of opinion that the earth
+     would not only be full but overflowing with human beings
+     were it not that hunger, pestilence, crime, war, abstinence
+     welcome sterility, etc. did away with the surplus
+     population. (History of the World, I, ch. 8, 4. Discourse of
+     war: Works, VII, 257 ff.) According to _Child_, Discourse of
+     Trade, 371 ff., 149, the population is always in proportion
+     to the amount of employment.
+
+     If England could employ only 100 men while 150 were reared,
+     50 would have to emigrate or perish; and so, too,
+     conversely, occasional vacancies would soon be filled.
+     Similarly _Davenaut_, Works II, 233, 185; who, however, in
+     the practical application of this law of nature, adopts the
+     error of his contemporary, G. King, the statistician,
+     according to whom the population of England would increase
+     to 11,000,000 (II, 176) only after 600 years. _Benjamin
+     Franklin's_ Observations Concerning the Increase of Mankind,
+     Peopling of new Countries, etc., 1751, are very good.
+     Franklin here shows that the same tables of mortality do not
+     apply to town and country, nor to old nations and new ones.
+     The nation increases more rapidly in proportion as it is
+     easy to contract marriage. Hence the increase is smallest in
+     luxurious cities and thickly populated countries. Other
+     circumstances, being equal, hunting nations require the
+     largest quantity of land for the purpose of subsistence, and
+     industrial nations least. In Europe, there was a marriage in
+     every 100 of the population per annum; in America, on every
+     50; 4 children to a marriage in the former, and 8 in the
+     latter.
+
+     Population diminishes as a consequence of subjugation, bad
+     government, the introduction of slavery, loss of territory,
+     loss of trade and food. He who promotes the opposite
+     advantages may well be called the "father of his country."
+     Further, _D. Hume_, Of the Populousness of the Ancient
+     Nations: Discourses No. 10. _Per contra, Wallace_, On the
+     Numbers of Mankind in Ancient and Modern Times, in which the
+     superior populousness of antiquity is maintained, 1753.
+     _Wallace_ relied chiefly on the more equable distribution of
+     land, and the smaller luxury of the ancient nations.
+     _Herbert_, Essai sur le Police des Grains (1755), 319 ff.
+     Les Intérêts de la France mal entendus, par un Citoyen
+     (Amsterd., 1757), I, 197.
+
+     _Steuart_ threw light especially on the connection between
+     mortality and the number of marriages (Principles, I, 13);
+     and he claims, with the utmost confidence, that only the
+     want of the means of subsistence, using the expression in
+     its broadest sense (I, 15), can put a limit to the increase
+     of population (I, 14). He calls wrongful procreation
+     (_falsche Zeugung_) the chief cause of pauperism (II, 1),
+     and his views on public charity have a strong Malthusian
+     complexion (I, 14). Compare further _A. Young_, Political
+     Arithmetics (1774), I, ch. 7. _Townsend_, Dissertation on
+     the Poor Laws (1786), makes a happy use of the example of
+     the Island of Juan Fernandez, in which a colony of goats was
+     developed, first alone, and afterwards in a struggle with a
+     colony of dogs, to illustrate the laws of the development of
+     population as limited by the supply of food. Compare the
+     same author's Journey through Spain, II, 8 seq.; 358 ff.,
+     III, 107. _G. M. Ortes_, Riflessioni sulla Popolazione,
+     delle Nazione per rapporto all'Economia nazionale, 1790,
+     ascribes geometrical progression to the increase of
+     population (cap. I) precisely as in the case of other
+     animals; only, in the case of the latter, a limit is put to
+     their increase by _forza_, and in the case of man, by
+     _ragione_. When the population of a country has attained its
+     proper development, celibacy is as necessary in order to
+     keep it so as marriage. Otherwise the door would be opened
+     to extreme pauperism, to the debauchery of the "venus vaga,"
+     to eunuchism and polygamy (4). Strangely enough, _Ortes_
+     asserts that no people are richer per capita than any other.
+     The distribution of wealth among the apparently richer,
+     operates to make individuals heap wealth together in greater
+     quantities (8).
+
+     _Malthus_ himself wrote his classical work under the
+     influence of a very intelligible reaction (1st ed., 1798; 2d
+     ed., 1803). For a whole generation, the European public had
+     had no other view broached but that the tree of human kind
+     might keep on growing even until it reached the heavens, if
+     care were only taken to manure the ground, to water the
+     roots and prune the branches according to the latest
+     world-improving recipes. _Malthus_, in opposition thereto,
+     called attention to the limits placed by nature to the
+     number of mankind. He demonstrated that it was not merely
+     arbitrary laws which opposed the Utopian happiness of all,
+     but in part the niggardliness of nature; and in greater part
+     the passions and sins of men themselves. If he sometimes
+     described the limits as narrower than they really are, and
+     if an occasional coarse expression escaped him, we need not
+     wonder. His polemic was well founded, and he was at the time
+     still a young man (born 1766, ob. 1834). He modified much in
+     the later editions of his work. For instance, he stopped the
+     unsavory sentence in which he says that a man born into the
+     world already occupied, whose family cannot support him, and
+     whose labor society does not need, has not the smallest
+     right to demand the smallest particle of food, and is really
+     superfluous in the world; that there is no place for him at
+     the great banquet of nature; that nature bids him go hence
+     and does not hesitate herself to execute the command. _P.
+     Leroux_ in a small pamphlet in answer to _Malthus_, quotes
+     this sentence at least forty times. Moreover, _Möser_, who
+     certainly is not considered a misanthrope, was not only
+     acquainted with the Malthusian law, but develops it in
+     words, and with consequences which strongly recall the very
+     words which raised such a storm against _Malthus_. Compare
+     Patr. Phant. I, 42; II, 1; IV, 15 (against vaccination); V,
+     26.
+
+     The opinions of political economists in our own day are, as
+     might be expected, divided on some of Malthus' expressions
+     and on his practical counsels. He has indeed but few such
+     one-sided followers as _Th. Chalmers_, On Political Economy
+     in Connexion with the moral State and moral Prospects of
+     Society, 1832. Malthus' fundamental views, however, are
+     truly scientific. (Κτῆμα ἐς ἀεὶ!) Compare _Baudrillart_,
+     Manuel, 424 seq., and _A Walker_, Science of Wealth, who
+     strangely enough (452) opposes Malthus, and yet is (458)
+     virtually of the same opinion. Even the better class of
+     socialists base themselves on the same view, without,
+     however, thanking Malthus for it. Thus for instance, _K.
+     Marlo_, System der Weltökonomie (1848, 52), passim. For an
+     excellent history of the theory of population, see _R.
+     Mohl_, Gesch. und Literatur der Staatswissenschaften, III,
+     409 ff. (1858).]
+
+
+SECTION CCXLIII.
+
+OPPONENTS OF MALTHUS.
+
+Of Malthus' opponents, John Stuart Mill has said, that a confused notion
+of the causes which, at most times and places, keep the actual increase
+of mankind so far behind their capacity for increase, has every now and
+then given birth to some ephemeral theory, speedily forgotten; as if the
+law of the increase of population were a different one under different
+circumstances, and as if the fecundity of the human species, by direct
+divine decree, was in keeping with the wants of society for the time
+being.[243-1]
+
+The majority of such theories are based, on the proof that Malthus'
+description of one stage of civilization is not true of another,
+although the great discoverer, who, with his admirable many-sidedness,
+had investigated the law of population in and throughout all the stages
+of civilization, had, as a rule, himself given due weight to all of
+this. The objection of unwarranted generalization applies to Malthus
+much less than to the majority of his opponents. Since, for instance, in
+young colonies, even the natural forces, which are in themselves limited
+or exhaustible, afford a wide field of operation for a long time; many
+American writers have supposed that labor alone was the source of
+wealth, and that, to say the least, wealth should increase in the same
+ratio as mankind; and even in a still greater ratio, since the division
+of labor grows easier as population increases in density.[243-2] But
+here it is forgotten that in every instance of economic production,
+there are many factors engaged, each one of which can take the place of
+another only up to a certain point. There are others, especially Grahame
+and Carey,[243-3] who allude to the possibility of emigration, which is
+still so far from being exhausted. But Malthus had nothing to say of the
+impossibility of emigration. He spoke only of the great difficulties in
+its way. (III. ch. 4.) There are many writers who would wish simply to
+ship emigrants off, like a great many doctors who send their patients
+away to die! (§ 259 ff.) When Sadler says that human prolificacy,
+circumstances remaining the same, is inversely as the density of
+population, he uses, to say the least, a very inaccurate mode of
+expression.[243-4] The grain of truth hidden in this assertion does
+certainly not come from Gray's theory, that in the higher stages of
+civilization, the better living usual is a hinderance to the increase of
+population, and that the prevailing influence of large cities increases
+mortality;[243-5] but from influences, or, to speak more correctly, from
+free human considerations, on which no one has thrown so much light as
+Malthus. And indeed, where is the man who has better understood or more
+warmly recommended the "aristocratic" impulse which should, in well
+ordered civil society, hold the sexual instinct in equilibrium?[243-6]
+Malthus himself pleasantly derides his opponents, who, to explain how
+the same rifle, charged with the same powder and provided with the same
+ball, produces an effect varying with the nature of the object at which
+it is fired, prefer, instead of calculating the force of resistance of
+the latter, to take refuge in a mysterious faculty by virtue of which
+the powder has a different explosive force, according to the greater or
+less resistance the ball meets when it strikes.[243-7] The peculiarity
+of Godwin's polemics may be inferred from the fact that he considered it
+very doubtful whether the population of England had increased during the
+four preceding generations; and that he traces the increase of the
+population of the United States to the influence of emigration almost
+exclusively, and allows the desertion of whole English regiments in 1812
+ff. to play a part in accounting for that increase.[243-8]
+
+Malthus has been accused of rejoicing over the evils which are wont to
+decimate surplus population; but the same charge might be brought
+against those physicians who trace the diseases back to the causes that
+produce them. He has also been branded as the enemy of the lower
+classes, spite of the fact that he is the very first who took a
+scientific interest in their prosperity.[243-9] As John Stuart Mill has
+said, the idea that all human progress must at last end in misery was so
+far from Malthus' mind, that it can be thoroughly combated only by
+carrying Malthus' principles into practice.[243-10]
+
+     [Footnote 243-1: _J. S. Mill_, Principles I, ch. 10.]
+
+     [Footnote 243-2: _Everett_, New ideas on population, with
+     remarks on the theories of Malthus and Goodwin, 1823.
+     Similarly _Carey_, Principles of Social Science, I, 88 ff.,
+     who, with a "natural philosophical" generalization, shows
+     that the more the matter existing on the earth takes the
+     form of men, the greater becomes the power of the latter to
+     give direction to natural forces with an ever accelerated
+     movement. So also _Fontenay_, in the Journal des
+     Economistes, Oct., 1850, says: _un nombre de travailleurs
+     doublé produit plus du double et ne consomme pas le double
+     de ce que produisaient et consommaient les travailleurs de
+     l'époque précédente_. Even _Bastiat_ inclines to the same
+     over-estimation of one factor of production. He promises in
+     the introduction to his Harmonies économiques to prove the
+     proposition: _toutes choses égales d'ailleurs, la densité
+     croissante de population équivaut à une facilité croissante
+     de production_. (Absolutely it is true, but whether
+     relatively, quære.)]
+
+     [Footnote 243-3: _Grahame_, Inquiry into the Principle of
+     Population, 1816; _Carey_, Rate of Wages, 236 ff.]
+
+     [Footnote 243-4: Varies inversely as their numbers: _M. Th.
+     Sadler_, The Law of Population, a treatise in Disproof of
+     the Superfecundity of human Beings, and developing the real
+     Principles of their Increase, III, 1830. There were, for
+     instance--
+
+     ===================================================
+                       | _Inhabitants_ |   _Number of_
+                       | _per English_ | _children to a_
+                       |  _sq. mile_   |   _marriage_
+     ------------------+---------------+----------------
+     The Cape          |       1       |      5.48
+     The United States |       4       |      5.22
+     Russia in Europe  |      23       |      4.94
+     Denmark           |      73       |      4.98
+     Prussia           |     100       |      4.70
+     France            |     150       |      4.22
+     England           |     160       |      3.66
+     ===================================================
+
+     Most of these figures are very uncertain; and even if they
+     were true, they would afford a very bad proof of his
+     assertion. Besides, _Sadler_ was one of those extreme tories
+     who resorted almost to Jacobin measures in opposition to the
+     reforms advocated by Huskisson, Peel and Wellington. Like
+     Sadler, _A. Guillard_, Eléments de Statistique humaine ou
+     Démographie comparée, 1855. But, for instance, in Saxony,
+     population has for a long time increased most rapidly, in
+     those places where it is already densest. Compare _Engel,_
+     loc. cit. The five German kingdoms and Mecklenburg-Strelitz
+     hold the same relative rank, on a ten-year average, in
+     relation to the number of births that they do to density of
+     population, (_v. Viehbahn_, Statistik des Z. V., II, 321
+     seq.)]
+
+     [Footnote 243-5: _Gray_, The Happiness of States, or an
+     Inquiry concerning Population, 1875. _Weyland_, Principles
+     of Population and Production, 1816, had already ascribed to
+     industry in itself a tendency to make the increase of
+     Population less rapid!]
+
+     [Footnote 243-6: Compare _Rossi_, Cours d'Economie
+     politique, I, 303 ff.]
+
+     [Footnote 243-7: _Malthus_, Principle of Population, V, ch.
+     3. Thus _J. B. Say_ asks those population-mystics: if in
+     thickly populated countries the power of procreation
+     diminishes of itself, how comes it that even here the
+     extraordinary voids made by pestilence, etc. are so rapidly
+     filled up?]
+
+     [Footnote 243-8: _Godwin_, Inquiry concerning the Power of
+     Increase in the Numbers of Mankind, III, 1821; III, ch. IV.
+     Compare the same socialistic writer's essay: Inquiry
+     concerning public Justice (II, 1793), which in part provoked
+     Malthus' book. _David Booth_ (in Godwin's first book) had
+     the misfortune to ridicule Malthus by comparing his law with
+     the law of gravitation, which he said did not freely operate
+     in nature and was undemonstrable in space void of air! From
+     a better point of view, Bastiat says of Malthus' traducers,
+     that they might as well blame Newton when they were injured
+     by a fall.]
+
+     [Footnote 243-9: Principle of Population, III, ch. 13. His
+     moral severity in other respects is apparent especially in
+     IV, ch. 13, towards the end.]
+
+     [Footnote 243-10: Every good family takes care of their
+     children even before their birth. How far from practical is
+     the view that the means of subsistence come as a matter of
+     course, provided only that men are here before them!]
+
+
+
+
+CHAPTER II.
+
+HISTORY OF POPULATION.
+
+
+
+
+SECTION CCXLIV.
+
+HISTORY OF POPULATION.--UNCIVILIZED TIMES.
+
+In the case of those wild tribes which can only use the forces of nature
+by way of occupation, the small extent of the field of food is filled up
+by even a very sparse population. And the principal means by which
+population is there limited are the following: the overburthening and
+ill treatment of the women,[244-1] by which the simultaneous rearing of
+several small children is rendered impossible;[244-2] the inordinately
+long time that children are kept at the breast;[244-3] the wide-spread
+practice of abortion;[244-4] numerous cases of murder, especially of the
+old and weak;[244-5] everlasting war carried on by hunting nations to
+extend their hunting territory, found in conjunction with cannibalism in
+many tribes.[244-6] Besides, nations of hunters are frequently decimated
+by famine and pestilence, the latter generally a consequence of
+never-ending alternation between gluttony and famine.[244-7]
+
+Most negro nations live in such a state of legal insecurity that it is
+impossible for a higher civilization with its attendant increase of the
+means of subsistence to take root among them. At the same time, their
+sexual impulses are very strong.[244-8] Here the slave-trade constituted
+the chief preventive of over-population. If this traffic were suppressed
+simply and no care taken through the instrumentality of commerce and of
+missions to improve the moral and economical condition of the negroes,
+the only probable but questionable gain would be that the prisoners made
+in the numberless wars generated by famine would be murdered instead of
+being sold.
+
+Nomadic races, with their universal chivalry, are wont to treat their
+women well enough to enable them bear children without any great
+hardship.[244-9] But the mere use of natural pasturage can never be
+carried to great intensity. The transition to agriculture with its
+greater yield of food but with the diminished freedom by which it is
+accompanied is a thing to which these warlike men are so averse that it
+directs the surplus population by the way of emigration into neighboring
+civilized countries, where they either obtain victory, booty and
+supremacy, or are rapidly subjugated. Such migrations are a standing
+chapter in the history of all Asiatic kingdoms; they for a long time
+disturb declining civilized states, finally conquering them, and begin
+the same cycle in the new kingdom.[244-10] Where nomadic races see
+themselves cut off from such migrations their marriages are wont to be
+unfruitful.[244-11]
+
+     [Footnote 244-1: In New Holland they are beaten by their
+     husbands even on the day of their confinement. Their heads
+     are sometimes covered with countless scars. _Collins_ says
+     that for mere pity one might wish a young woman there death
+     rather than marriage. (Account of N. S. Wales, 560 ff.)
+     South American Indian women actually kill their daughters,
+     with a view of improving the condition of women. (_Azara_,
+     Reisen in S. Amerika, II, 63.) How the women among the
+     aboriginal inhabitants of North America were oppressed is
+     best illustrated by the absence of ornaments among the
+     women, while the men were very gaudily decked, and carried
+     small hand-mirrors with them. (_Prinz Neuwied_, N. A. Reise,
+     II, 108 seq.) The early decay of female beauty among all
+     barbarous nations is related to the ill-treatment they
+     receive.]
+
+     [Footnote 244-2: The custom of killing one of twins
+     immediately after birth or of burying a child at the breast
+     with its mother, prevails extensively among savage nations.
+     On New Holland, see _Collins_, 362; on North America,
+     Lettres édifiantes, IX, 140; on the Hottentots, _Kolb_, I,
+     144.]
+
+     [Footnote 244-3: In many Indian tribes, children are kept at
+     the breast until their fifth year. (_Klemm_,
+     Kulturgeschichte I, 236; II, 85.) Among the Greenlanders,
+     until the third or fourth year (_Klemm_, I, 208); among the
+     Laplanders and Tonguses, likewise (_Klemm_, III, 57); among
+     the Mongols and Kalmucks, longer yet. (_Klemm_, III, 171.)]
+
+     [Footnote 244-4: The New Hollanders have a special word to
+     express the killing of the fœtus by pressure.
+     (_Collins._) Among certain of the Brazilian tribes, this is
+     performed by every woman until her 30th year; and in many
+     more the custom prevails for a woman when she becomes
+     pregnant to fast, or to be frequently bled. (_Spix und
+     Martius_, Reise, I, 261.) Compare _Azara._, II, 79.]
+
+     [Footnote 244-5: On the Bushmen, see _Barrow_, Journey in
+     Africa, 379 ff.; on the Hottentots, among whom even the
+     wealthy aged are killed by exposure, see _Kolb_, Caput bonæ
+     Spei, 1719, I, 321; on the Scandinavian, old Germans,
+     Wendes, Prussians, _Grimm_, D. Rechtsalterthümer, 486 ff.;
+     on the most ancient Romans, _Cicero_, pro Rosc. Amer, 35,
+     and Festus v. Depontani, Sexagenarios; on Ceos, _Strabo_, X,
+     486; on the ancient Indians, _Herodot._, III, 38, 99; on the
+     Massagetes, _Herodot._, I, 216; on the Caspians, _Strabo_,
+     XI, 517, 520. Touching picture of an old man abandoned in
+     the desert, unable to follow his tribe compelled to emigrate
+     for want of food: _Catlin_, N. American Indians, I, 216 ff.
+     We here see how the killing of helpless old people may be
+     considered a blessing among many nations. Death is also
+     sometimes desired by reason of superstition. For instance,
+     the Figians think that after death they will continue to
+     live of the same age as that at which they died.
+     (_Williams_, Figi and the Figians, I, 183.) The Germans who
+     died of disease did not get to Walhalla! (_W. Wackernagel_,
+     Kl. Schriften, I, 16.)]
+
+     [Footnote 244-6: On the frightful cannibalism practiced on
+     the upper Nile, see _Schweinfurth_ in _Petermann's_ geogr.
+     Mettheilungen, IV, 138, seq. Australian women seldom outlive
+     their 30th year. _Lubbock_, Prehistoric Times, 449. Many are
+     eaten by the men as soon as they begin to get old.
+     (Transactions of the Ethnolog. Society, New Series, III,
+     248.) A chief of Figi Islands who died recently had eaten
+     872 men in his lifetime. _Lawry_, Visit to the Friendly and
+     Fejee Islands, 1850. Even the more highly civilized Mexicans
+     had preserved this abomination. According to _Gomara_,
+     Cronica de la N. Espana, 229, there were here from 20,000 to
+     25,000 human sacrifices a year; according to _Torquemada_,
+     Indiana, VII, 21, even 20,000 children a year. _B. Diaz_, on
+     the other hand, puts the number down at 2,500 only. Compare
+     _Klemm_, Kulturgeschichte, V, 103, 207, 216.]
+
+     [Footnote 244-7: The usual coldness, so much spoken of, of
+     the Indians, seems to have an economic rather than a
+     physiological cause. At least, it has also been observed
+     among the Hottentots. (_Levillant_, Voyage, I, 12 seq.), and
+     under favorable economic conditions the Indians have
+     sometimes increased very rapidly. (Lettres édifiantes, VIII,
+     243.) Whether the practice in vogue among the Botocuds to
+     carry the organ of generation continually in a rather narrow
+     envelope, or that among the Patachos of lacing the foreskin
+     with the tendrils of a plant, is not a "preventive check,"
+     quære. Compare _Prinz Neuwied_, Bras. Reise, II, 10; I,
+     226.]
+
+     [Footnote 244-8: On the gold coast, people become fathers in
+     their 12th year even, and mothers at 10. (_Ritter_,
+     Erdkunde, I, 313.) In the whole of the Soudan the climate is
+     so exciting that the intercourse of the sexes is said to be
+     a "physical necessity," and an unmarried man of eighteen is
+     universally despised. But, indeed, the individual is little
+     valued in Africa, on account of the great prolificacy of the
+     African race. (_Ritter_, I, 385.)]
+
+     [Footnote 244-9: _Herodot._, IV, 26.]
+
+     [Footnote 244-10: Compare _Machiavelli_, at the beginning of
+     his Istoria Fiorentina. The migration of the Germani is
+     accounted for simply by the family and marriage relations of
+     the Germans, which necessarily favored prolificacy: _Severa
+     matrimonia ... singulis uxoribus contenti sunt ... septae
+     pudicitia ... paucissima adulteria ... publicatae pudicitiae
+     nulla venia ... nemo vitia ridet ... numerum liberorum
+     finire, flagitium habetur ... sua quemque mater uberibus
+     alit ... sera juverum Venus eoque inexhausta pubertas ...
+     quanto plus propinquorum, tanto gratiosior senectus._
+     _Tacit._, Germ., 14. Entirely similar in character were the
+     migrations of the Normans, which lasted just as long as the
+     resistance to the countries they would invade, seemed to
+     them a matter of less difficulty than the transition to a
+     higher civilization in their own country. _Malthus_ has
+     corrected the extravagant notions concerning the former
+     density of population in the North--the _vagina nationum_,
+     according to Jornandes! (_Malthus_, I, ch. 6.) Compare,
+     however, _Friedrich M._, in Antimachiavel, ch. 21, and the
+     later view: Ouevres, IX, 196.]
+
+     [Footnote 244-11: Among the Bedouins even three children are
+     considered a large family; and they even complain of that
+     number. (_Burckhardt._)]
+
+
+SECTION CCXLV.
+
+INFLUENCE OF A COMMUNITY OF WOMEN AND POLYGAMY.
+
+Most barbarous nations live very unchaste;[245-1] so that, as Tacitus
+observes, the ancient Germans were a brilliant exception to the
+rule.[245-2] Vices of unchastity always limit the otherwise natural
+increase of population. Premature enjoyment exhausts the sources of
+fruitfulness in the case of many.[245-3] The life of the child conceived
+in sin is generally little valued by its parents. Hence the numerous
+instances of exposure and infanticide.[245-4] We have already seen how
+closely, psychologically speaking, a community of goods is allied to a
+community of women. (§ 85.) And, indeed, in the lower stages of
+civilization, we find as close an approximation to the latter as to the
+former; and it is difficult to believe that, among men living in a state
+of nudity, the marriage of one man to one woman could properly
+exist.[245-5] But it is as little possible to reconcile a community of
+women with density of population as great national wealth with a
+community of goods. Any one acquainted with the condition and capacities
+of new born children knows that the weak little flame easily goes out
+when not nursed by family care.[245-6]
+
+Polygamy also is a hinderance to the increase of population. Abstract
+physiology must, indeed, admit that a man may, even without any danger
+to his health, generate more children than a woman can bear.[245-7] But,
+in reality, the simultaneous enjoyment of several women leads to excess
+and early exhaustion;[245-8] and if one of them is married after the
+other, the older who might still bear children for a long time are
+neglected by the man.[245-9] Monogamy is, doubtless, the Creator's law,
+since only in monogamous countries can we expect to find the intimate
+union of family life, the beauties of social intercourse and free
+citizenship.[245-10] "God made them male and female."[245-11] And yet in
+all countries with which we are statistically acquainted, there is a
+somewhat larger number of boys than of girls born;[245-12] but this
+excess is removed by the time that puberty sets in, by reason of the
+greater mortality of boys. Only extraordinary conditions which thin the
+ranks of males, such as war and emigration, leave a preponderance of the
+number of women.[245-13] Hence, among barbarous nations, who live in
+everlasting strife (§§ 67, 70), polygamy is very generally established.
+Men are seldom deterred therefrom by a solicitude concerning what they
+shall eat, since the women are treated as slaves, and rather support the
+men than are supported by them.[245-14] But in the civilized countries
+of the east, the polygamy of the great may actually lead to the
+compulsory singleness of many of the lower classes, as a species of
+compensation.[245-15] The monstrous institution of eunuchism, which has
+existed time out of mind in the east, is a consequence of this condition
+of things as well as of the natural jealousy of the harem.[245-16]
+
+     [Footnote 245-1: Impurity of the Kamtschatdales, bordering
+     on a community of women. (_Klemm_, Kulturgeschichte, I, 287
+     ff., 350 ff.; II, 206, 297 seq.) On Lapland, see _Klemm_,
+     III, 55. In their purely nomadic period, even the Getes,
+     afterwards remarkable for their noble character (_Horat._,
+     Carm., III, 24), have had very loose relations of the sexes.
+     (_Menander_, in _Strabo_, VII, 297.)]
+
+     [Footnote 245-2: Very unlike the Celts: _Strabo_, IV, 199.
+     But the Germans even at the time when the compensation
+     system alone prevailed, imposed a disgraceful death on the
+     _corpore infames. (Tacit._, Germ., 12.) In keeping with this
+     purity of the Germans was the deep gravity and the genuine
+     heartiness of their ancient nuptial ceremonies. (_Tacit._,
+     Germ., 18.) Similarly, in England throughout the middle
+     ages. (_Lappenberg_, Engl., Gesch. I, 596.) Great moral
+     severity of the Scandinavians (_Weinhold_, Altnord. Leben,
+     255), so that the gratification of the sexual appetite
+     outside of marriage was punishable with death. (_Adam
+     Brem._, IV, 6, 21.)]
+
+     [Footnote 245-3: Abuse of young girls in New Holland
+     (_Collins_, 563); among the American aborigines
+     (_Charlevoix_, Histoire de la N. France, III, 304; Lettres
+     édifiantes, VII, 20 ff.); among the negroes (_Buffon_,
+     Histoire naturelle de l'Homme, VI, 255).]
+
+     [Footnote 245-4: Infanticide in Kamtschatka, _Klemm_, I,
+     349.]
+
+     [Footnote 245-5: In most mythical histories, the
+     institutions of property and of marriage are ascribed to the
+     same name (Menes Cecrops, the Athenian Thesmophories.) Among
+     the Indian tribes of Terra Firma, the exchange of wives and
+     the _jus primæ noctis_ of the chiefs are very common.
+     (_Depons_ Voyage, I, 304, ff.) In North America, the Indians
+     are very eager to rent out their wives for a glass of
+     brandy. (_Prinz Neuwied_, N. A. Reise, I, 572 seq.) Compare
+     _Lewis_ and _Clarke_, Travels to the Source of the Missouri
+     and the Pacific Ocean, 1804-1806. Almost always on entering
+     a higher age-class it is one of the principal conditions to
+     leave one's wife for a time to the more distinguished. On
+     feast days, prayer days, etc., the women give themselves
+     publicly up to vice; and this can be commuted only by a
+     gift. (_Prinz Neuwied_, I, 129 ff., 272.) Community of women
+     in California. (_Bagert_, Nachrichten von der Halbinsel C.
+     1772.) In many of the South Sea Islands, the youth of the
+     higher classes were wont to form themselves into so-called
+     _arreyo-societies_, the object of which was the most
+     unlimited intercourse of the sexes (a pair being united
+     generally only from 2 to 3 days), and the murder of the new
+     born children. The girls principally were murdered, and
+     hence the missionaries at Otaheite (New Cytheria) found only
+     1/5 as many women as men. _Chaque femme semble être la femme
+     de tous les hommes chaque homme le mari de toutes les
+     femmes._ (_Marchand_, I, 122.) The many governing queens
+     here are characteristic. Compare _Forster_, Reise II, 100,
+     128; _Kotzebue_, Reise, III, 119; European Magazine, June,
+     1806; _Reybaud_, Voyages, et marines, 128, and the
+     quotations in _Klemm_, Kulturgesch., IV, 307.
+
+     Similar customs are found among the nomads. The Bedouins
+     dissolve their marriages so easily that a man forty-five
+     years old had 50 wives; family secrets are a thing unknown
+     there. (_Burckhardt_, Notes on the Bedouins, 64; Travels
+     app. II, 448; _Ritter_, Erdkunde, XII, 205, 211, 983.) On
+     the Libyans, see _Herodot._, IV, 168, 172, 186, 180: on the
+     Massagetes, _Herodot._, I, 216; on the Taprobanes, _Diod._,
+     II, 58; on the Troglodytes, _Pomp, Mella._, I, 8,
+     _Agatharch_, 30. Community of women among the ancient
+     Britons, _Caesar_, B. G. V, 14 seq.; also among the naked,
+     tatooed Caledonians, _Dio Cass._, LXXVI, 12; probably also
+     among the cannibal Irish. _Strabo_, IV, 201. Great laxity of
+     the marriage tie in Moelmud's laws of Wales, (_Palgrave_,
+     Rise and Progress of the English Commonwealth, I, 458 ff.)
+     in which country a species of tenure in common of land and
+     servants was customary. (_Wachsmuth_, Europ. Sittengesch.
+     II, 225.) In Russia, in very ancient times, only the Polanes
+     had real marriages. (_Nestor v. Schlözer_, I, 125 seq.)
+     Something very analogous even among the Spartans: same
+     education for boys and girls, admittance for men to the
+     female gymnasiums; marriage in the form of an abduction, and
+     afterwards fornication. (_Xenoph._, De rep. Laced. I, 6:
+     _Plutarch_, Lycurg. 15.) Adultery tolerated by law in
+     countless cases. (_Xenoph._, II, 7 ff.; _St. John_, The
+     Hellenes, I, 394.) History of the origin of the so-called
+     Partheniæ; _Strabo_, VI, 279. (_Supra_, § 83.) The custom
+     which prevails among so many barbarous nations to designate
+     one's progeny by the name of the mother, _Sanchoniathan_
+     traces to the licentiousness of women. (p. 16, Orell.)
+     Traces of this also in Egypt: _Schmidt_, Papyrusurkunden,
+     321 ff. Avunculus means little grand-father. Many proofs
+     which _Peschel_, Völkerkunde, 243 seq. explains otherwise,
+     but which seem to me to point to an original community of
+     wives.]
+
+     [Footnote 245-6: The relation existing between the so-called
+     organization of labor (§ 82) and a community of wealth is
+     repeated in the relation of a community of wives to the
+     situation in Dahomey, where every man has to purchase his
+     wife from the king. _Gumprecht_, Afrika, 196. Similarly
+     among the Incas: _Prescott_, Hist. of Peru, I, 159. Even the
+     sale of wives is a step in advance as compared with a
+     community of wives (§ 67 seq).]
+
+     [Footnote 245-7: It is said that a German prince of the 18th
+     century had 352 natural children. (_Dohm_, Denkwürdigkeiten,
+     IV, 67.) Feth Ali, shah of Persia, had made 49 of his own
+     sons provincial governors, and he had besides 140 daughters.
+     (_Ker Porter_, II, 508.)]
+
+     [Footnote 245-8: Turkish married men are frequently impotent
+     at the age of 30. (_Volney_, Voyage dans la Turquie, II,
+     445.) Similarly in Arabia. (_Niebuhr,_ Beschreibung, 74.)
+     The use of aphrodisiac means very wide-spread in the East.
+     According to _Niebuhr_ (76), monogamous marriages produced
+     absolutely more children than polygamous. Compare _G.
+     Botero_, Ragion di Stato, VIII, 93 ff.; _Montesquieu_,
+     Lettres Persanes, N., 114; _Süssmilch_, Göttl. Ordnung, I,
+     Kap., 11. On the other hand, _Th. L. Lau_, Aufrichtiger
+     Vorschlag von ... Einrichtung der Intraden (1719), 6,
+     recommends the allowing of polygamy as a means of increasing
+     population.]
+
+     [Footnote 245-9: Rehoboam had 18 wives and 60 concubines,
+     and only 88 children (II Chron., 11, 21); that is not much
+     more than one child by each.]
+
+     [Footnote 245-10: The high esteem for woman requisite to
+     true love seems to be almost irreconcilable with polygamy.
+     The wife stands to the husband in the relation of a
+     mistress; and, in reference to the latter, fidelity has
+     scarcely any meaning. The husband also has no confidence in
+     his wife; and hence the seclusion of the harem. But the
+     domestic tyrant is easily made the slave of a higher power.
+     And what becomes of fraternal love with the half-brother
+     feeling of children of different mothers?]
+
+     [Footnote 245-11: Genesis 1, 27; 5, 12; 7, 13.]
+
+     [Footnote 245-12: Compare _J. Graunt_, Natural and Political
+     Observations on the Bills of Mortality (1662). During the
+     course of the 19th century, according to averages made from
+     long series of years, there were, for every 1,000 girls born
+     alive in Lombardy, 1,070 boys; in Bohemia, 1,062; in France,
+     1,058; in Holland, 1,057; in Saxony, 1,056; in Belgium,
+     1,052; in England, 1,050; in Prussia, 1,048. On the whole,
+     the ratio in 70,000,000 children born alive was as 100 :
+     105.83. The excess of males over females in bastards is
+     smaller than in the case of legitimate children, in towns
+     than in the country. Everything considered, the number of
+     boys born seems to be greater than the number of girls in
+     proportion as the father is in advance of his wife in years.
+     Compare _Sadler_, Law of Population, II, 343. _Hofacker_,
+     Ueber die Eigenschaften die sich vererben, 51 ff. _Wappäus_,
+     Allg. Bevölkerungstatistik, II, 151, 160 ff., 306 ff. _Per
+     contra_, we have _Legoyt's_ supposition that the number of
+     boys born is greater in proportion as the parents are more
+     nearly of an age: Statistique comparée, 500.]
+
+     [Footnote 245-13: According to the censuses between 1856 and
+     1861, there are for every 1,000 men in Belgium 994 women; in
+     Austria, 1,004; in Prussia, 1,004; in France, 1,001; in
+     England, 1,039; in Holland, 1,038. The majority of the
+     latter seems to have diminished everywhere the greater the
+     distance in time from the most recent great wars; and to
+     belong only to those age-classes which were coeval with
+     those wars. (Preuss. amtliche Tabellen für 1849, I, 292.) In
+     the United States there were, 1800-1844, for every 1,000
+     women, 1,033-1,050 men; mainly accounted for by large
+     immigration. Between 1819 and 1855 the immigration was
+     2,713,391 men and 1,720,305 women. (_W. Bromwell_, History
+     of Immigration to the United States, New York, 1856.) In
+     Switzerland, among the population belonging to the cantons,
+     there were for every 1,000 men, 1,038 women; among the
+     foreign Swiss, 970; among foreigners, 650. (_Bernouilli_,
+     Populationistik, 31.) Compare _Horn_, loc. cit., I, 105 ff.,
+     who supposes a natural principle of equilibrium: the greater
+     the preponderance of the number of women, the more does it
+     happen that only the younger women are married; the greater
+     consequently the difference between the ages of the married
+     couple, and the more probable the birth of boys, and _vice
+     versa_. (115 ff.)]
+
+     [Footnote 245-14: Compare _Catlin_, N. American Indians, I,
+     118 ff. Even Strabo believed that among the Median
+     mountaineers each man had five wives! (XI, 526.)]
+
+     [Footnote 245-15: Concerning Solomon's 700 wives and 300
+     concubines, see I Kings, 11, 3; according to the Canticle of
+     Canticles, only 60 wives and 80 concubines. According to
+     _Mirkhond_ and _Khondemir_, there was in the place in which
+     the Sassand shah resided, 3,000 women of the harem and
+     12,000 female slaves. Polygamy among the latter class is
+     seldom possible or thought of. Of 2,800 Moslems in Bombay,
+     only 100 lived in polygamy, and only 5 had three wives each.
+     (_Ritter_, Erdkunde, 1088.) I lay no weight here on the
+     assertion so frequently repeated of travelers in the east,
+     that more girls than boys are born there; for the reason
+     that there is there no real statistics, and that the infidel
+     travelers can be permitted few glimpses into the secrecy of
+     family life. _Lady Sheil_ indeed assures us that in Persia
+     itself the opinion prevails that there are a great many more
+     women than men. Glimpses of Life and Manners in Persia,
+     1855. Similar pretense among the Mormons.]
+
+     [Footnote 245-16: We find, even on Egyptian temples,
+     pictures representing the castration of prisoners. _Franck_,
+     in the Mémoires sur l'Egypte, IV, 126. On Babylon, see
+     _Hellanicus_, apud. Donat. ad Terent. Eunuch., I, 2, 87.
+     This province, besides Assyria (the ancient seat of sultan
+     glory), delivered 500 castrated boys per annum to the king
+     of Persia. (_Herodot._, III, 92.) Of the califs, Soliman is
+     said to be the first (at the beginning of the 8th century)
+     who had his harem superintended by eunuchs; a very sensual
+     master who frequently changed his wives. (_Reiske Z.
+     Abulfeda_, I, 109 ff.; _Weil_, Gesch. der Kalifen, I, 573.)
+     At an audience which the calif Moktadir gave to a Byzantine
+     ambassador, there appeared 4,000 white and 3,000 black
+     eunuchs. (_Rehm._, Gesch. des Mittelalters, I, 2, 32.) In
+     the harems of the present Persian persons of rank, there are
+     usually from 6 to 8 eunuchs. _Rosenmüller_, Altes und Neues
+     Morgenland, IV, 290. In Upper Egypt, the castration of
+     handsome boys by monks (!) is a regular trade. About 2 per
+     cent. die in consequence of the operation, the others rise
+     in consequence in price from 200-300 to 1,000 piasters.
+     (_Ritter_, Erdkunde, I, 548.) In the Frankish middle age,
+     the merchants of Verdun castrated persons to sell them in
+     Spain. Compare _Liutprand_, Hist., VI, 3, in _Muratori_,
+     Script. Rerum Ital., II, 1, 470.]
+
+
+SECTION CCXLVI.
+
+HISTORY OF POPULATION.--IN HIGHLY CIVILIZED TIMES.
+
+The conditions of population among mature and flourishing nations is
+characterized by this, that the moral and rational preventive tendencies
+counter to over-population decidedly preponderate. Here so much value is
+attached to the life, and to the healthy and comfortable life of human
+beings already in existence that even the majority of the lower classes
+take care to bring no more children into the world than can be properly
+supported, nor to bring them into being in advance of food. Here, too,
+mortality is relatively small, which when population is stationary is
+found in connection with a higher average duration of human life.[246-1]
+While among savage and semi-savage nations, travelers are struck by no
+phenomenon as much as by the total absence of old men,[246-2] in most
+European nations the average duration of life has, during the last
+centuries, seemed to noticeably increase. In France, for instance,
+between 1771 and 1780, on a population of 29,000,000 at most, there were
+as many deaths as on 35,000,000 between 1844 and 1853.[246-3] In Sweden,
+the classic land of statistics relating to population, mortality from
+1749 to 1855 had diminished 0.107 per cent. per annum.[246-4] [246-5]
+
+No reasonable man considers mere living the highest good; but, from an
+average prolongation of life, we may with great probability infer an
+improvement in the means of subsistence, in hygienic measures, etc.,
+even for the lower classes, who everywhere constitute the great majority
+of the population. _Aisance est vitalité!_--at least on the supposition
+that morality remains the same.[246-6] How great may not have been the
+effect, for instance, of the healthier mode of the building of modern
+cities, of the disappearance of the greater number of fortifications
+etc., the more rational character of the healing art, the extension of
+vaccination,[246-7] the hygienic measures adopted by governments,[246-8]
+the better care of the poor and especially the asylums for small
+children! The modern system of agriculture and of the corn trade make
+famines less destructive of life.[246-9] (§ 115). The modern
+quarantine-system has protected us entirely against a number of plagues;
+and the worst epidemics of our day cannot be compared with those of
+earlier periods or in less civilized countries. In the second half of
+the 17th century, it was estimated in London that a plague would occur
+once in every 20 years, each of which swept away one-fifth of the entire
+population.[246-10] And in that very city the annual mortality between
+1740 and 1750 varied three-fifths, during the second half of the 18th
+century only one-third, during the 19th century only one-fifth in the
+same decade; a clear proof of the diminished fatality of
+epidemics.[246-11] [246-12]
+
+     [Footnote 246-1: The so-called _Populationistikers_ are wont
+     to distinguish between the average and probable duration of
+     life (_vie moyenne--vie probable_); and understand by the
+     former the number of years which, on an average, have been
+     accorded to one deceased; by the latter, the number of years
+     after the expiration of which one-half of a given number of
+     human beings have disappeared. If _x_ deceased persons have
+     lived an aggregate of _s_ years, their average duration of
+     life = _s_/_x_. In the case of a whole people, indeed, even
+     the many-years' average of the duration of life of those
+     deceased expresses the true average duration of life only
+     when (a rare case) the aggregate population remains
+     stationary. For, when the population is increasing, the
+     average age of the deceased is smaller than the average
+     duration of life, and, when population is decreasing,
+     larger. In the saddest case of all, when there are no births
+     whatever, and the nation is gradually dying out, there would
+     be an increase from year to year of the average age. In all
+     such cases, strictly speaking, only the actual observation
+     and following up of those born, until they die; can afford a
+     safe result. This is _Hermann's_ method, introduced into
+     Bavaria since 1835. Compare the XIII. and XVII. numbers of
+     the official Bavarian statistics with _G. Meyer's_ criticism
+     in _Hildebrand's_ Jahrbüchern, 1867, I. And indeed _Hopf_,
+     Preuss. Statist. Zeitschr., says that a complete table of
+     mortality can be made, according to the best method, only
+     after centuries of observation.
+
+     Compare _Kopf_, in the 3d edition of _Kolb's_ Handbuch der
+     Statistik, and the solid works of _G. F. Knapp_, Ueber die
+     Ermittelung der Sterblichkeit (1868) and Die Sterblichkeit
+     in Sachsen (1869). _Price's_ mode of calculation of which
+     _Deparcieux_ is the real author, which divides the number of
+     the living by the arithmetical mean of the number of births
+     and deaths is not only inaccurate (_Meyer_, loc. cit., 43
+     ff.) but erroneous in principle, since it allows two
+     countries of equal population to be the same, the one of
+     which has 120,000 births and a mortality of 80,000, and the
+     other, on the contrary, 80,000 births and a mortality of
+     120,000. _Engel_ recommends as the measure of real vitality
+     the ratio between the "living years" and the "dead years,"
+     meaning by the former the sum of the years which those still
+     living have lived through, and by the latter the sum of the
+     years lived through by those who have died within a given
+     period. (Preuss. Statist. Zeitschr., 1861, 348 ff.) But the
+     inference which may be drawn from a high or a low average of
+     life is altogether ambiguous. A high average may as well be
+     produced by a great mortality among children as by a
+     favorable mortality among those of mature age; and a low
+     average as well by a relatively small number of births as by
+     a relatively short duration of life. (_Meyer_, loc. cit.,
+     23, 24.)]
+
+     [Footnote 246-2: On the aborigines of America, see Lettres
+     édifiantes, VII, 317 ff. _Cook,_ Third Voyage, III, ch. 2.
+     _La Pérouse_, Voyage, ch. 9. _Robertson_, Hist. of America
+     B., IV. _Raynal_, Histoire des Indes L., XV. On the African
+     negroes: _M. Park_, ch. 1. They are said to manifest the
+     symptoms of old age at 40, and very seldom to live to be
+     over 55 or 60 years of age.]
+
+     [Footnote 246-3: _Necker_, De l'Administration des Finances
+     de la France, 1784, I, 205 ff., gives for 1771-80 the
+     average number of births, per annum, 940,935; of deaths,
+     818,391; the population at 24,229,000. _Legoyt_, Statist.
+     Comp., estimates the last, in 1784, at at least 26,748,843,
+     probably even at 28,718,000. During the period, 1844-53,
+     35,000,000 to 36,000,000 Frenchmen had only about as many
+     births (956,317) and deaths (815,723) as a much smaller
+     population before the Revolution--the latter numbers,
+     according to official estimation, omitting the
+     still-born--which _Necker_ also scarcely took into
+     consideration. _C'est la différence entre un peuple de
+     prolétaires et une nation, dont les deux tiers jouissent des
+     bienfaits de la propriété. (Moreau de Jonnès)._ In France,
+     there was one death, in 1784, on every 30 living; in 1801,
+     on every 35.8 living; in 1834-5, on every 38 living; in
+     1844, on every 39.9 living; in 1855-57 (average), on every
+     41.1 living; in 1860-65 (average), on every 43.7 living. It
+     is also probable, that the average duration of life in
+     France increased from the fact that, from 1800 to 1807, the
+     number of persons subject to conscription was only 45 per
+     cent. of the whole corresponding number of births; but that
+     from 1822 to 1825 it was 61 per cent. (_Bernoulli_,
+     Populationistik, 452.) On Paris alone, see _Villermé_,
+     Mémoire lu à l'Académie des Sciences, 29 Nov., 1824. Compare
+     _supra_, § 10.]
+
+     [Footnote 246-4: _Wappäus_, Allg. Bevölkerungsstatistik. In
+     Prussia, in the less cultured provinces (the eastern), the
+     mortality and number of births is greatest; but in the whole
+     country the relative mortality seems to have remained
+     stationary since 1748. (_Engel_, Preuss. Statist. Zeitschr.,
+     1861, 336 seq.) And even the average age of the deceased
+     decreased even between 1820 and 1860 (344 ff.) In Berlin
+     alone, the arithmetical mean of the number of births and
+     deaths shows no improvement, at least (loc. cit. 1862,
+     195).]
+
+     [Footnote 246-5: In Geneva, where there have been almost
+     uninterrupted tables of mortality, giving the age at the
+     time of death, the average duration of life during the 2d
+     half of the 16th century is estimated at 21-1/6 years;
+     during the 17th century, at 25¾ years; from 1701 to 1750,
+     at 32-7/12 years; from 1750 to 1800, at 34½ years; from
+     1814 to 1833, at 40-2/3 years. Compare _Mallet_, Recherches
+     historiques et statistiques sur la Population de Genève,
+     1837, 98 ff., 104 ff., and _Bernouilli_, Schweiz, Archiv.,
+     II, 77; _per contra, d'Ivernois_, sur la Mortalité
+     proportionelle des peuples considérée comme Mesure de leur
+     Aisance et Civilization, 1833, 12 ff. But little can be
+     inferred from this, on account of the large immigration, of
+     adults for the most part. Geneva is said to have had, in the
+     16th century, never much more than 13,000 inhabitants; at
+     the end of the 17th century it had 17,000; in 1789, 26,000;
+     between 1695 and 1795 there was an increase of 6,000 at
+     least from abroad. (_Bernouilli_, Populationistik, 369 seq.)
+     Compare _Wappäus_ in the Götting. Gesellsch. der Wissensch.
+     Bd., VIII, 1860, who, however, as well as _Neison_,
+     Contributions to Vital Statistics, VI ff., is too skeptical
+     as regards modern progress in vitality.]
+
+     [Footnote 246-6: Higher civilization, indeed, instead of
+     leading to higher vitality, may lead to immoderate toil and
+     immoderate enjoyment. (_Schäffle_, in the D.
+     Vierteljahrsschrift, April, 1862, 340.) _Engel_ says that,
+     in general, life is more intense in our day, and hence leads
+     to a more rapid exhaustion of individual life-force.
+     (Preuss. Statist. Ztschr., 1862, 53.) According to English
+     experience of the well-fed classes, those have the greatest
+     duration of life who otherwise live in modest circumstances.
+     Thus, for instance, clergymen thirty years of age have still
+     an average expectation of life of 39.49 years; members of
+     the learned professions, 38.86; country gentlemen, 40.22;
+     members of the aristocracy, 37.31; princes of the blood,
+     only 34.04; sovereigns, only 27.16 (Statist. Journal, 1859,
+     356 ff.); while agricultural laborers, who have sufficient
+     means and intelligence to participate in the so-called
+     friendly societies, have an expectation of life of 40.6
+     years after their thirtieth year. (_Neison_, loc. cit.) On
+     the whole, it seems to be in harmony with the democratic
+     leveling tendencies of our own age, that the better care of
+     children and of the sick has lengthened short lives, and
+     that the unrest of the times has shortened the long lives,
+     although the level of the general average continually rises,
+     notwithstanding. Thus, in Geneva, the proportion of those
+     who outlived their thirtieth year was: in the 16th century,
+     after 1549, 29.87; in the 17th century, 37.29; in the 18th
+     century, 49.39; in the 19th century, until 1833, 58.85 per
+     cent. of the number of births. On the other hand, the
+     expectation of life of those who had attained their 80th
+     year, was in these four centuries respectively 6.22, 5.87,
+     4.40 and 3.84 years. (_Mallet_, l. c., and Statist. Journal,
+     1851, 316 ff.) In keeping with this is, that according to
+     _Guy's_ researches, the average duration of life of the
+     English peerage and baronetage was, in 1500-1550, 71.27
+     years; 1550-1600, 68.25 years; 1600-1650, 63.95 years;
+     1650-1700, 62.40 years; 1700-1745, 64.13 years. (Statist.
+     Journal, 1845, 74.) However, we may most directly infer a
+     favorable condition of things from the diminished mortality
+     of children, for the reason that this, far more directly
+     than the mortality of adults, is conditioned by the quality
+     of food. The younger a child is, the more exclusively is its
+     life-force the product of these two factors: the physical
+     constitution of its parents and the care bestowed upon it.
+     Compare _F. J. Neumann_, Die Gestaltung der mittleren
+     Lebensdauer in Preussen, 1865, 26 ff. In Prussia, in
+     1751-60, only 312 in 1,000 outlived their tenth year; in
+     1861-70, 633 in 1,000. Yet, since 1856, the mortality of
+     children has again begun to increase. (_Knapp_,
+     Mittheilungen des Statist. Bureaus, VIII, p. 8.)]
+
+     [Footnote 246-7: _Duvillard_, Analyse ou Tableau de
+     l'Influence da la petite Vérole, 1806, is of opinion that
+     before vaccination only 4 per cent. of those over 30 years
+     of age were spared by the small-pox; that two-thirds of all
+     new-born children were attacked by the disease sooner or
+     later, and that from one-eighth to one-seventh of those
+     attacked died; and of small children even one-third. Hence,
+     in many countries, the average duration of life was
+     increased 3½ years by reason of vaccination. In London,
+     between 1770 and 1779, of 1,000 deaths, 102 were caused by
+     the small-pox; in from 1830 to 1836, only 25 in 1,000.
+     (_Porter_, Progress of the Nation, I, 1, 39.) In Berlin,
+     between 1792 and 1801, 4,999 persons died of the small-pox;
+     between 1812 and 1822, only 555. (_Casper._) That this is
+     really a consequence of vaccination is proved by the facts
+     of the Chemnitz small-pox epidemic of 1870-71, during which,
+     in four of the streets principally visited by it, 9 per
+     cent. were taken ill. Of 4,375 persons who had been
+     vaccinated, 2.12 per cent. were attacked; of 644 who were
+     not vaccinated, 54.38 per cent. Of those attacked, 2.1 per
+     cent. of the former and 11.3 per cent. of the latter died.
+     (Leipzig Tageblatt, 5 Mai, 1871.)]
+
+     [Footnote 246-8: Among the earliest institutions of medical
+     police are the following: the Swedish Collegium medicum
+     under Charles XI; the Prussian, 1724; the Danish, 1740; the
+     quarantine law of Louis XIV., of 1683; the Parisian bureau
+     of nurses, 1715; lying-in establishments since 1728; French
+     institutions for the saving of drowned persons, 1740;
+     English institutions for the saving of persons in cases of
+     apparent death, 1744; bathing largely promoted by government
+     since the eighteenth century; prohibition by Maria Theresa
+     of burial in churches and of locating cemeteries too near
+     dwelling houses, in 1778. Even _Thomasius_, De Jure
+     Principum circa Sepultur., § 8, had advised this; and, in
+     Italy, _Fr. Patricius_, De Inst. Republ. V, 10. On ancient
+     medical police, see _Pyls_ Repertorium für öffentliche und
+     gerichtliche Arzneiwissenschaft, II 167, ff. III, 1 ff.]
+
+     [Footnote 246-9: In France, the number of deaths in the
+     cheap years, 1816 and 1819, amounted to an average of
+     755,877; of the dear years, 1817 and 1818, to an average of
+     750,065. (Ann. d'Economie politique, 1847, 333.) Thus, the
+     same scarcity in Pomerania increased its otherwise smaller
+     mortality relatively less than in Posen. (_Hildebrand's_
+     Jahrbb. 1872, I, 292.) It is a good sign that in Altenburg,
+     between 1835 and 1864, the variation in the price of corn
+     had no influence on its mortality, although the number of
+     marriages and of births was conditioned by it. (_v. Scheel_
+     in _Hildebrand's_ Jahrbb., 1866, I, 161 ff.)]
+
+     [Footnote 246-10: _Sir W. Petty_, Several Essays, 31 seq.
+     Great regularity of epidemics in the tropical world:
+     _Humboldt_, N. Espagne, II, 5. The great plague in the
+     middle of the 14th century is said to have destroyed 2/3 of
+     the population of Norway, of Upland, 5/6; in the mountain
+     districts of Wermeland only 1 boy and 2 girls were left.
+     (_Geijer_, Schwed. Gesch., I, 186.) According to _Sismondi_,
+     Gesch. der Italien. Republiken, VI, 27, 3/5 of the whole
+     population of Europe died at that time. How the cholera
+     would have raged among our forefathers in the middle ages!
+     Certainly, as it does now in the East Indies; since, when of
+     those really attacked by the disease among ourselves so many
+     die, we cannot attribute our small number of deaths from
+     cholera to the smaller intensity of the disease or to the
+     greater skill of our doctors, but chiefly to the better
+     nourishment of our people, to their better dwellings and
+     greater cleanliness. Compare _Heberden_, On the Increase and
+     Decrease of Disease, 1801.]
+
+     [Footnote 246-11: _Bernouilli_, Populationistik, 363, seq.
+     Whether, on this account, we can infer the increased health
+     of the people, is very much doubted by the aged _laudatores
+     temporis acti_. They would have us believe that it is
+     possible that the prolongation of the average of human life
+     is to be explained by taking into account the case of
+     numerous valetudinarians who formerly died early, but who
+     are _now_ preserved to drag out a miserable existence. The
+     relative number of those who have died of old age did not
+     noticeably increase between 1816 and 1860 either in Berlin
+     or in the Prussian state. (_Engel_, Zeitschr., 1862, 222.)
+     Compare, per contra, _Marx_, Ueber die Abnahme der
+     Krankheiten durch die Zunahme der Civilization: transactions
+     of the Göttinger <ins title="original reads Gesellschaft
+     der Wissenschaften, 1842--44,43, ff. The extreme limit of
+     the decrease of mortality, where there are no other causes
+     of death but inevitable weakness of childhood and age, _J.
+     G. Hoffmann_ thinks would be one death per annum for every
+     52-53 living, and _Wappäus_, one in 57-58. (Allg.
+     Bevölkerungstatistik, I, 231, 340); (_Schäffle_, System, I,
+     571); according to Capeland observations, one for every
+     fifty.]
+
+     [Footnote 246-12: This much, however, is clear, that the
+     life insurance companies of the present day cannot rely on
+     the calculations made in earlier stages of civilization; on
+     _Süssmilch's_, for instance; and just as little on those of
+     the old Romans in L. Digest. ad Leg. Falcidiam. Compare
+     _Schmelzer_, De Probabilitate Vitae ejusque Usu forensi,
+     1788.]
+
+
+SECTION CCXLVII.
+
+HISTORY OF POPULATION.--NUMBER OF BIRTHS AND DEATHS.
+
+There is found to be in most states, where a decrease in mortality has
+been observed, a diminished number of births likewise.[247-1] This,
+indeed, happens necessarily only in the case in which the means of
+subsistence either do not increase at all, or in a less degree than
+mortality has decreased. Thus, towards the end of the 18th century,
+Norway was the country where the increase and decrease of the population
+were most remarkable for their smallness. There was only one death
+between 1775 and 1784 for every 48 living persons; but, at the same
+time, only one marriage for every 130 living.[247-2] The organization of
+labor was so little developed among the Norwegians, especially in the
+absence of important cities, the industries of which might have been
+able to absorb the surplus population, that almost every one of its
+inhabitants was in a condition to calculate in advance whether or not he
+would have enough to support a family. A person born in the country
+remained generally in his native village all his life. To found a family
+he had either to own a peasant's estate himself or wait until one of the
+day laborer's huts (_Kathe_), of which there were several attached to
+each such estate, was vacant. A too large family would certainly have
+died of hunger in the winter time. The clear sober sense of the people
+recognized this fact, and all the farm houses of the peasants were
+without any appreciable injury to morality filled with unmarried
+servants of both sexes who were, indeed, supplied with clothes and food
+but who at the same time were indolent and incapable of
+advancement.[247-3] Where a nation's economy is rapidly advancing, there
+is no necessity why the most natural and when properly directed the most
+beneficent human impulse should be sacrificed to a higher average
+duration of life. But if this must be, when the distribution of the
+national resources is pretty nearly equal, it is not so much the number
+of marriages as the average fruitfulness of marriages that will
+diminish; that is as many persons as before may enter the married state
+but most of them are obliged either to postpone doing so until a later
+age, which places a greater interval between generation and generation,
+and causes the number of those living at any one time to decrease; or
+they cease to procreate children at an earlier period in their married
+life. The latter is found especially in France.[247-4] [247-5] But, on
+the other hand, where the distribution of the national resources is very
+unequal, the rich may afterwards as well as before continue to follow
+out their inclination to marry at as early a day and age as they wish;
+but the less fortunate must remain unmarried through life. Here,
+therefore, the average number of children to a marriage does not
+diminish; but the aggregate number of marriages does.[247-6] If the
+relative frequency of marriages in most European countries has
+diminished during the last century, the cause has been in part directly
+the long duration of life of married couples. Hence, we are not always
+warranted in consequence, to infer a diminished number of existing
+marriages.[247-7]
+
+In many countries, it has been recently observed that the average number
+of persons to a family is a decreasing one. Thus for, instance, in 1840,
+in Holland, there were to every hundred families 497 persons, in 1850,
+only 481; in Saxony, in 1832, 460; in 1840, only 443; in Bavaria, in
+1827, 480, in 1846, only 448. In cities also the average size of
+families is usually smaller than in the country.[247-8] This is
+intimately connected with this other fact that in the higher stages of
+civilization a larger number of independent households consists of
+single persons in contradistinction to married couples.[247-9] [247-10]
+
+     [Footnote 247-1: In France there was one child born alive,
+
+          In 1801-1805, on every 30.9 living.
+          In 1806-1810,  "       31.6   "
+          In 1811-1815,  "       41.5   "
+          In 1816-1820,  "       31.6   "
+          In 1821-1825,  "       32.1   "
+          In 1826-1830,  "       33.0   "
+          In 1831-1836,  "       34.0   "
+          In 1846-1850,  "       37.8   "
+          In 1851-1854,  "       37.88  "
+          In 1860-1864,  "       37.56  "]
+
+     [Footnote 247-2: _Malthus_, Principle of Population, II, ch.
+     1. In Denmark, at the same time, 1 in 37 and 114.
+     (_Thaarup_, Dänische Statistik., II, 1, 4.)]
+
+     [Footnote 247-3: In modern times, the intellectual and legal
+     conditions which existed in Norway have been loosened to a
+     great extent, and population in that country has, in
+     consequence, made rapid advances. In 1769 the population was
+     only 723,000; in 1855, it was 1,490,000. But the above
+     customs for the most part continue still. Between 1831 and
+     1835, there was one marriage a year for every 138 living
+     persons. The relative number of marriages is smaller than
+     before. In 1769, there were, in every 1,000,376 married
+     persons; in 1801, 347; in 1825, 345; in 1835, 322. In 1805,
+     there were only 63 illegitimate births to every 1,000
+     births; in 1835, the proportion was 71.5 in every 1,000.
+     (_Blom_, Statistik Con N., II, 168, 173.)]
+
+     [Footnote 247-4: In England, there were, in 1838-47, of
+     every 1,000 contracting marriage, 94 who had not yet
+     completed their 21st year; in Belgium, 1840-50, only 54; but
+     the famine year, 1846-47, noticeably lowered the relative
+     number of minors in both countries. There were married--
+
+     Column Head Key:  A - _In Belgium 1841-50._
+                       B - _In the purely Flemish provinces._
+                       C - _In the purely Wallonic provinces.
+                       D - _Sweden 1831-35._
+     ==============================================================
+                  |   A   |   B   |   C   |             D
+     -------------+-------+-------+-------+------------------------
+                  |  per  |  per  |  per  |
+                  | 1,000 | 1,000 | 1,000 |
+     Before their
+       21st year  |   56  |   32  |   74  |{ 359 per 1,000 males.
+     From 22 to   |       |       |       |{
+       25 years   |  219  |  181  |  259  |{ 463 per 1,000 females.
+
+     From 26 to   |       |       |       |{458 males, 387 females,
+       35 years   |  503  |  511  |  490  |{   per 1,000.
+
+     From 36 to   |       |       |       |
+       45 years   |  161  |  191  |  129  |{ 183 per 1,000 males.
+     After their  |       |       |       |{
+       45th year  |   61  |   75  |   48  |{ 150 per 1,000 females.
+     ==============================================================
+
+     But it must not be overlooked here, that the Flemish
+     provinces of Belgium had been for a long time in a sad
+     economic condition. (_Horn_, Studien, I, 75 ff.) No less
+     characteristic of the well-being of a people and their
+     providence in entering into the married state is the
+     relative age at which they contract marriage. If we divide
+     ages into four classes (up to the 30th year, between 31 and
+     45, between 46 and 60, and after 60), we find, for instance,
+     that from 1841 to 1845, there were in West Flanders 585 per
+     1,000 marriages between persons of the same age-class, 305
+     in which the husband, and 110 in which the wife belonged to
+     an older class; in Namur, on the other hand, 683, 234 and
+     83. In dear years, the relative number of marriages between
+     persons belonging to different age-classes, and the relative
+     difference in age of parties to the marriage contract
+     increases.
+
+     And so, the frequency of second marriages of widows and
+     widowers is no favorable symptom of the facility of founding
+     a family. Naturally every woman prefers a man who was never
+     married before to a widower; and every man a maiden to a
+     widow; but where there is a want of room to establish a new
+     household, the possession of such one by a widower may
+     readily preponderate over all counter considerations. Thus,
+     for instance, in the Flemish provinces of Belgium, of 1,000
+     widowers, from 365 to 395 marry again; in the Wallonic, only
+     from 293 to 308. Of 1,000 brides, 98 are widows in West
+     Flanders, and in Namur, 41. A similar proportion in Bavaria
+     between the Palatinate and the hither-districts. (_Hermann_,
+     Bewegung der Bevölkerung in Bayern, p. 14.) The less the
+     frequency of marriage in general, the greater is the
+     relative probability of second marriage for widows and
+     widowers; and hence, in years of scarcity, the latter
+     relatively increase. (_Horn_, Studien, I, 201 ff.) Sometimes
+     this increase is absolute: in Austria, during the cheap year
+     1852, there were 231,900 marriages between persons never
+     before married, and 85,000 in which at least one of the
+     contracting parties had been married before. On the other
+     hand, during the dear year 1855, there were only 156,000 of
+     the former and 89,000 of the latter. Something analogous,
+     observed in antiquity. (_Pausan._, II, 21, 8; X, 38, 6;
+     _Propert._, II, 11, 36.) _Tacitus_, Germ., 19, describes the
+     moral feelings of the ancient Germans as averse to the
+     second marriage of widows, and he apparently approves it.]
+
+     [Footnote 247-5: In 19 European countries, with an aggregate
+     population of 121,000,000, the number of the married
+     amounted to an average of 34.88 per cent. of the whole
+     population. France is at the head with 38.94 per cent.
+     (1866), even 40.5. In these countries, of all adults, there
+     is a percentage of 65.98 who marry. France is here, also, at
+     the head, with a percentage of 73.58. And the number of the
+     unmarried has continually decreased in post-revolutionary
+     France. In 1806, there were only 35.84 per cent. of the
+     population married. (_Wappäus_, A. Bevölk erungsstatistik,
+     II, 219, 223, 229.) In relation also to the frequency of
+     first marriages and of marriage at the proper age, France is
+     the best situated country. (_Haushofer_, Lehr- und Handbuch
+     der Statistik, 40 ff.) But at the same time, in what
+     concerns the fruitfulness of marriage, it is the farthest
+     behind; and since 1780 prolificacy has continually decreased
+     there. Thus, 1800-1815, 3.93 legitimate children to a
+     marriage; 1856-60, only 3.03; 1861-6, again 3.08. (_Legoyt_
+     in the Journal des Econ. Oct. 1870, 28.) How little this
+     depends upon physiological causes may be inferred from the
+     fact that _Strabo_ commends the women of the Gallic race for
+     their peculiar adaptability to bearing and rearing children.
+     (IV, 178, 196.) The "prudential checks" must play a
+     principal part in producing a low birth rate. (Statist.
+     Journal, 1866, 262), as we find in France
+
+     ============================================================
+                   |  _Yearly per 100_      |
+                   |   _inhabitants._       | _Women who marry_
+         _In_      +------------------------+ _before their 25th_
+                   |_Marriages._| _Births._ | _year_.
+     --------------+------------+-----------+--------------------
+     Brittany,     |    7.0     |    29.8   |    42.7 per cent.
+     Adour,        |    6.9     |    25.0   |    47.3    "
+     Lower Garonne,|    8.3     |    22.0   |    59.7    "
+     Upper Seine   |    8.0     |    23.7   |    60.0    "
+     ============================================================
+
+     That, however, the shorter duration and smaller fruitfulness
+     of marriage by no means necessarily accompany one another,
+     France also proves, since it possesses the longer average
+     duration of marriage: 26.4 years against 20.7 in Prussia.
+     (_Wappäus_, II, 311, 315.)]
+
+     [Footnote 247-6: The proportion of the married to the whole
+     population declined in Prussia from 35.09 in 1816, to 33.09
+     per cent. in 1852; in Sweden, from 36.41 in 1751 to 32.59
+     per cent. in 1855; in Norway, from 37.60 per cent. in 1769
+     to 32.21 per cent. in 1855; in Saxony, from 35.52 per cent.
+     in 1834, to 34.98 per cent. in 1849. (_Wappäus_, II, 229.)
+     If all who are at least 20 years of age be considered
+     competent to marry, there are of every 1,000 thus competent
+     in Belgium, 520 actually married; in the Flemish provinces
+     alone, 489; in the most favorably situated Wallonic, 554.
+     (_Horn_, Bevölk. Studien, I, 139 ff.) In Rome, under
+     Augustus, the proportion was much less satisfactory. In the
+     higher classes, a large majority did not marry at all.
+     (_Dio. Cass._, I, VI, 1.)]
+
+     [Footnote 247-7: In Halle, in 1700, there was one marriage
+     for every 77 of the population; in 1715, for every 99; in
+     1735, for every 140; in 1755, for every 167. In Leipzig, in
+     1620, there was one for every 82; 1741-1756, for every 118;
+     1868, for every 92.8. In Augsburg, 1510, one in 86; in 1610,
+     in 108; in 1660, in every 101; in 1750, in every 123. The
+     provinces of Magdeburg, Halberstadt, Cleve, Mark, Munden,
+     Brandenburg, Pomerania and Prussia had, about the end of the
+     seventeenth century, one marriage per annum for every 76-95
+     of the population; the Prussian monarchy, 1822-1828, one
+     marriage for every 109-121. Compare _Sussmilch_ Göttl.
+     Ordnung, I., 131, ff., _Schubert_ Staatskunde des preuss.
+     Staates I., 364. In France, 1801-1805, there was one
+     marriage per annum in every 137 living; in 1821-5, for every
+     129; in 1831-35, for every 127; in 1842-51, for every
+     125.39; in 1860, for every 124.7.]
+
+     [Footnote 247-8: In Prussia, in 1849, there were in every
+     one hundred families in the cities, 492 individuals; in the
+     country, 512. In Belgium, in 1846, 459 and 497 respectively.
+     (_Horn_, Bevölk. Studien, I, 88, ff.) In France, in 1853, in
+     the cities, 358; in Paris alone, 299. In the Zollverein, the
+     number of individuals in a family increased in 1852-55, 5.81
+     per cent.; the population only 3.02 per cent.; the
+     population of those over fourteen years of age, by 4.41 per
+     cent.; of minors by 1.02 per cent. Only in Saxony and the
+     cities of Hanover was the reverse the case. (_v. Viebahn_,
+     II, 278, seq.)]
+
+     [Footnote 247-9: Thus, for instance, in Belgium, for every
+     100 households, there are 74 marriages; in the cities of
+     Belgium, 70; in the Belgian country parishes, 75; in Prussia
+     in 1849, 84. (_Horn_, I, 93 seq.) It is estimated that in
+     Prussia, only 3 per cent. of the adult population live
+     outside of the family. (_Viebahn_, II, 273.)]
+
+     [Footnote 247-10: It is strange that _Süssmilch_, Göttl.
+     Ordnung, I, § 13, considers mortality an unalterable law,
+     while he fully recognizes the social grounds which caused
+     the frequency and prolificacy of marriages to vary (I, § 56,
+     99).]
+
+
+SECTION CCXLVIII.
+
+HISTORY OF POPULATION.--NUMBER OF BIRTHS AND DEATHS.
+
+So far as the mere number of the population is concerned, it is
+obviously a matter of indifference whether there are annually 1,000
+births and 800 deaths, or 2,000 births and 1,800 deaths. But we see in
+the former an element of higher civilization,[248-1] especially, on
+account of the conditions which determine it. It can occur only where
+even the most numerous, that is the lower class, feel other wants than
+those of the mere means of existence and of the satisfaction of the
+sexual instinct: wants, duties which probably could not be satisfied in
+a state of marriage thoughtlessly entered into; where the virtues both
+of foresight and self-control are very generally practiced.
+
+And then let us consider the consequences. The efficacy of the
+repressive hinderances to over-population either consists in immoral
+acts or easily leads to immorality. Until a "surplus" child has died,
+what a series of troubles for good parents, and what a chain of evil
+deeds for bad ones, to say nothing of the poor child itself.
+
+Further, every man, no matter how short or long his life, requires a
+large advance of capital and trouble which he has later to return to
+society through the activity of his riper years. If he dies before his
+maturity, this advance has been made in vain. The more, therefore, the
+population of a country, in order to maintain itself within the bounds
+of its field of food, has to calculate on the death of children, the
+greater is this loss.[248-2] Hence, from a national-economic point of
+view, it is to be considered a great advance, that in England in 1780,
+there was one death among its people under 20 years of age in every 76
+of the population, in 1801, in every 96, in 1830, in every 124, in 1833,
+one only in every 137. (_Porter._) Lastly, the longer the average
+duration of life of a child the greater, other circumstances remaining
+the same, the number of grown people as compared with that of the
+children; but grown people are, as a rule, independent, capable of
+self-defense, economically productive, competent to discharge all the
+rights and duties of citizenship, while children are dependent,
+incapable of self-defense, unproductive, immature. Only he who knows the
+relative numbers of the different age-classes of a nation can draw
+fruitful conclusions from the data per capita relating to taxation, from
+the statistics of crime, suicides, illegitimate births, of
+school-children, etc., or judge correctly of a locality's military
+contingent.[248-3] [248-4] Here, indeed, it should not be overlooked that
+in the highest age-classes, human beings return in many respects to the
+helplessness of childhood. Yet, as a rule, to reach a good old age is
+generally considered a personal good fortune; and the existence of a
+great many aged persons in a country, if not in itself an advantageous
+element in its economy, may, nevertheless, be called a pleasing
+symptom.[248-5] On an average there is only one person over sixty to
+every twelve under fifteen years of age. (_J. G. Hoffmann._) We may,
+hence, readily measure what an advantage France possesses in this, that
+in 1861, in every 1,000 inhabitants, only 273 were under fifteen years
+of age, 524 between sixteen and fifty, the most vigorous years of life,
+and 203 over fifty years old. The average age of the French population
+was 31.06 years against 27.22 in Sardinia and 25.32 in Ireland.
+
+However, a positively unfavorable conclusion from a relatively large
+number of children in a nation should not be drawn except in the case of
+a people the limits of whose field of food cannot be extended. (§ 239.)
+Where the nation's economy has a rapid growth, as for instance in young
+colonies, the comparatively easy rearing of children which there
+obtains, without any corresponding mortality, is not so much considered
+a burthen[248-6] as a symptom of their good fortune and even a positive
+good.[248-7] On the other hand, of the Belgian provinces, for instance,
+suffering Flanders had relatively the smallest number of children,
+because it had the largest child-mortality.[248-8]
+
+Almost all the signs which, according to the above paragraphs,
+distinguish a higher stage of civilization from a lower, may be shown
+within the limits of the same age and nation to characterize the upper
+classes as compared with the lower. We may even claim that the greater
+foresight and self-control of the former in the matter of marriage and
+in the procreation of children, since the abolition of the greater
+number of legal advantages of class, are by far the most important of
+the elements constituting their superiority over the latter. The word
+proletariat, from _proles_, means first of all, having many children
+(_Vielkinderei_)!
+
+     [Footnote 248-1: _J. Möser_ did not even dream of this.
+     Patr. Phant., I, 15.]
+
+     [Footnote 248-2: _Rossi_, Cours d'Economie politique, I,
+     371, estimates the cost of bringing up a child to its 16th
+     year at a minimum of 1,000 francs. Hence, a country with
+     1,000,000 births annually, in which only 50 per cent. reach
+     that age, would lose 500,000,000 francs per annum. However,
+     over one-third of the children in question die in the first
+     years of childhood, and the rest do not reach on an average
+     their 16th year, but die between the age of 7 and 8:
+     _Bernouilli_, Populationistik, 259. _Engel_ estimates
+     Saxony's "man-capital" at 4 times the value of all the land
+     in the country, and at 10 times the value of all movable
+     property. (Sächs., Statist. Zeitschr., 1855, No. 9. Preuss.
+     Statist. Zeitschr., 1861, 324.) One of the chief advocates
+     of the view that there is an investment of capital in every
+     child is _Chadwick_ in the opening address delivered by him
+     before an English learned society at Cambridge: Statist.
+     Journal, Dec., 1862. Lancashire alone pays a penalty per
+     annum for preventable deaths of £4,000,000, for the funeral
+     and medical expenses; to say nothing of the capital lost
+     (506).]
+
+     [Footnote 248-3: _Bernouilli_, Populationistik, 51 ff.
+     _Quetelet_, Recherches statist. sur le Royaume des Pays-Bas,
+     1827, 1, 9, and Du Système social, 1848, 176 ff., specially
+     called attention to the important differences in this
+     relation, between the productive and unproductive years of
+     life. Thus it should not be forgotten, when reading of the
+     greater mortality of the poor quarters of Paris, that
+     strangers who are for the most part in the vigorous years of
+     life, live there least of all.]
+
+     [Footnote 248-4: In Russia, it seems that only 36 per cent.
+     of all those born outlive their 20th year; in England, 55
+     per cent. (_Porter_, Progress, ch. I, 29.) The Russian
+     peasants are said to have from 10 to 12 children, only about
+     one-third of whom grow to maturity, (_v. Haxthausen_, I,
+     128.) In the United States, the population was in 1820
+     divided into two nearly equal parts as to age, the 16th year
+     of age forming the dividing point; in England the same was
+     the case, only the dividing point was 20 years of age.
+     (_Tucker_, Progress of the United States, 16, 63.)]
+
+     [Footnote 248-5: There were in
+
+     ---------------------------------------------------------------
+                   |_Years._|_From 0 to_ |_From 16 to_ | _Over 50_
+                   |        | _15 years_ |  _50 years_ |  _years_
+                   |        | _of age._  |  _of age._  | _of age._
+     ---------------------------------------------------------------
+                   |        |  Per 1,000 |  Per 1,000  |  Per 1,000
+                   |        | of the pop.| of the pop. | of the pop.
+                   |        |            |             |
+     Belgium,      |  1846  |    323     |     509     |     168
+     Prussia,      |  1849  |    370     |     504     |     126
+     Great Britain,|  1851  |    354     |     504     |     142
+     Holland,      |  1849  |    333     |     509     |     158
+     Saxony,       |  1840  |    339     |     505     |     156
+     Sweden,       |  1850  |    328     |     511     |     161
+     ---------------------------------------------------------------
+
+     In Great Britain, the census of 1851 gave 596,030 persons
+     over 70 years of age; 9,847, over 90; 2,038, over 95; 319,
+     over 100 years of age. (Athen., 12 Aug., 1854.) In France,
+     in 1851, there were 1,319,960 persons seventy years of age
+     and over. In the United States the population of--
+
+     ----------------------------------------------------------------
+                             |  _Per English_ | _Relative number of
+                             | _square mile._ | _children under ten
+                             |                | _years._
+     ----------------------------------------------------------------
+                             |  1800 |  1840  |    1800   |   1840
+     ------------------------|---------------------------------------
+                             |       |        | per cent. | per cent.
+     New England,            | 19.2  |  34.8  |    63.5   |  51.1
+     The Middle States,      | 15.3  |  43.6  |    70.7   |  55.7
+     The Southern States,    |  8.9  |  15.9  |    73.0   |  67.8
+     The Southwestern States,|  1.3  |  13.7  |    77.6   |  75.5
+     The Northwestern States,|  2.3  |  25.5  |    84.9   |  73.8
+     ----------------------------------------------------------------
+
+     In the whole Union, in 1830, the age classes up to 20 years
+     embraced 56.12 per cent. of the population; in 1840, 54.62
+     per cent; in 1850, 51.85 per cent. Compare _Horn_, Bevölk.
+     Studien, I, 126; _Wappäus_, A. Bevölk. Stat., II, 44, 125
+     ff., 88; _Tucker_, Progress of the United States, 105.]
+
+     [Footnote 248-6: As _Wappäus_ says that in America an equal
+     number of adults must work for at least a third larger
+     number of children than in Europe: "a much more unfavorable
+     situation, so far as production-force is concerned." (A.
+     Bevölk. St., II, 44.)]
+
+     [Footnote 248-7: _Horn_, I, 127 ff. The Becoming is not only
+     more pleasant than the Having become, but it may even stand
+     higher in so far as the latter consists only in being
+     resigned to further development.]
+
+     [Footnote 248-8: _Les mendiants sont dans le cas des peuples
+     naissants_ etc. _Montesquieu_, E. der Lois, LXXIII, 11. In
+     England and Wales in 1851-60, there died yearly before their
+     sixth year, 7.24 per cent. of all male children born, but in
+     the families of peers, only 2.22 per cent. (Stat. Journal,
+     Sept., 1865.) If we grade the quarters of the city of Berlin
+     according to the well-being of their inhabitants, we find
+     that in the lower, the number of married men between 18 and
+     25 years is successively greater 1.1, 1.4, 2.4 and 3.4 per
+     cent. (_Schwabe_, Völkszählung von, 1871, 24.)]
+
+
+SECTION CCXLIX.
+
+HISTORY OF POPULATION.--IN PERIODS OF DECLINE.
+
+Nations involved in political and religious decline are wont to lose the
+moral foundation of the situation last described. Here, therefore,
+again, both the repressive (which are almost always immoral) tendencies
+counter to over-population, and the viciously preventive occupy the most
+prominent place. We may most completely observe this spectacle among the
+heathen nations of later antiquity. But, unfortunately, even among
+modern nations, we find some analogies to the ancient, to which the
+political economist may point with the finger of warning. "For unto
+every one that hath shall be given, and he shall have abundance; but
+from him that hath not shall be taken away even that which he hath."
+This universally applicable truth explains the fact that all successive
+acts of immorality, the more frequently they occur the less severely are
+they branded by public opinion.
+
+A. We are not warranted, from the relative[249-1] number of illegitimate
+births, to draw too direct an inference in relation to the morality of a
+people. Where, for instance, as in the kingdom of Saxony, the annual
+frequency of marriage was 0.017 of the population, every illegitimate
+birth bears evidence of a greater absence of self control than in
+Bavaria, where, on every one thousand living, there were only thirteen
+marriages a year.[249-2] In many quarters, where the economic relations
+are very stable, and where peasant estates (_geschlossene Bauergüter_)
+are subject to a species of entailing, where consequently the son can
+engage in marriage only after the death of the father, illegitimate
+children are in great part legitimatized by subsequent marriage at a
+later time, and meanwhile brought up in the family of the mother like
+legitimate children.[249-3] Evidently the guilty inconstancy creative of
+ephemeral _liaisons_, and the neglect of the children born of them, do
+not here produce the sad effects which they are wont to in the large
+cities, where illegitimate relations are made and dissolved with
+shocking rapidity. However, births are seldom heard of in the case of
+ruined debauchees.
+
+At the same time, the frequency of illegitimate births is always an
+evidence that the rightful founding of a home is made difficult[249-4]
+by the economic condition of the police provisions of a country; and
+that the moral force of the people does not suffice to resist the
+temptation[249-5] which such condition and provisions suppose. In the
+latter respect, this phenomenon may be considered, not only as a symptom
+but also as a cause: since bastards are generally very badly brought up.
+A large parthenic population is always an element of great danger in a
+state.[249-6] The frequency of illegitimate children must, however, be
+designated as a tendency counter to over-population, for the reason that
+still-born births and early deaths occur much more frequently among them
+than among legitimate children.[249-7]
+
+B. The trade of the women of the town is indeed an exceedingly old
+one.[249-8] But this evil assumes large dimensions only where a large
+class of men and women have no prospect to marry at all, or only late in
+life; especially when, at the same time, families have become
+unaccustomed to keeping together for life.[249-9] Prostitution may be
+considered a counterpoise to over-population, not only because of the
+polyandry it involves, but also of the infecundity of its
+victims.[249-10] Even the diseases which it propagates are not without
+importance in this regard. The love of change and impatience of
+restraint which it produces keeps many a man who, economically
+considered, might very well engage in marriage, in a state of criminal
+celibacy.[249-11] This moral poisoning of the nation's blood is more
+pernicious in proportion as vice is decked with the charms of
+intellect,[249-12] and reflected in literature and art.[249-13] When
+Phryne had wealth enough to project the rebuilding of Thebes, and
+boldness enough to ask to be allowed to put this inscription on its
+walls: "Alexander destroyed them, but Phryne, the hetæra, rebuilt them,"
+not only the dignity but the nationality of Greece was gasping for the
+last time for breath.[249-14] [249-15]
+
+C. I know no sadder picture in all history than the wide diffusion and
+even sovereignty which unnatural vice possessed among the declining
+nations of antiquity. Egypt and Syria seem to have been the original
+seat of this moral plague.[249-16] In Greece, there was a time noted for
+the brilliancy of its literature and art, when the poetic fancy, in its
+dreams of love, pictured to itself only the forms of beautiful boys; and
+that this love was generally an impure one, there is, unfortunately, no
+room to doubt.[249-17] In more ancient Rome, it was most severely
+punished;[249-18] but afterwards, again, it seemed reprehensible to a
+Tibullus only when it was bought with money.[249-19] Even under Cæsar, a
+censor could threaten an ædile with a charge of sodomy; the latter
+reciprocate the threat, and think it witty to invite a man like Cicero
+to assist at the curious argument which such a case might call forth,
+before a pretor with a reputation of being guilty of the same
+vice.[249-20] When the horrible deeds of which Tiberius was guilty are
+known, we cannot consider them capable of exaggeration. But Tiberius, at
+least, sought secrecy, while Nero, Commodus and Heliogabalus felt a
+special delight in the publicity of their shame.[249-21] [249-22] [249-23]
+
+     [Footnote 249-1: The ratio between the number of
+     illegitimate births and legitimate, so generally brought
+     forward, leads to no correct conclusions whatever. The ratio
+     between the number of illegitimate births, on the other
+     hand, and marriageable men and women, especially of those
+     who are yet unmarried, may afford a basis for valuable
+     inferences. Compare _Hoffmann_, in the Preuss.
+     Staatszeitung, 1837, No. 18. In Prussia, nearly 75 per cent.
+     of all women between 17 and 75 are married. (_v. Viehbahn_,
+     II, 189.)]
+
+     [Footnote 249-2: In Bavaria, not only was the frequency of
+     marriage surprisingly small (one marriage a year in every
+     151.59 inhabitants, while the average in 14 European
+     countries was 1 in 123.9), but marriage was there contracted
+     at a surprisingly advanced age. Of 10,000 of both sexes
+     engaging in marriage, there were, in Bavaria, only 2,081 25
+     years of age and less, while in England, there were 5,528.
+     Compare _Wappäus_, A. Bevölk. Statistik, II, 241, 270.]
+
+     [Footnote 249-3: In Oldenburg, it is estimated that 48 per
+     cent. of its illegitimate children are legitimatized _per
+     subsequens matrimonium_ (_Rau-Hanssen_ Archiv. N. F., I, 7),
+     in the agricultural districts of Nassau even 70 per cent.
+     (_Faucher's_ Vierteljahrsschrift, 1864, II, 19), in the whole
+     of Bavaria, 15 per cent.; in the Palatinate, 29.7 per cent.
+     (_Hermann_, Bewegung der Bevolkerung, 20); in the Kingdom of
+     Saxony, 1865, at least 21 per cent. (Statist. Zeitschr.
+     1868, 184.) In France 10 per cent. of the marriages
+     contracted legitimatize children. (_Legoyt_, Stat. Comp.,
+     501); in Saxony, 1865, 11.7; in Bavaria up to 1852, about
+     1/8 of the marriages belonged to this category; 1858-61,
+     1/7; 1861-64, nearly 1/6. Compare Heft XII, of the official
+     statistics. In the manufacturing towns of France, especially
+     the border ones, a large number of the children of female
+     operatives and of males having their domicile in foreign
+     parts, are legitimatized by marriage: thus in Mühlhausen,
+     23.7 per cent. Recherches statist. sur M., 1843, 62.]
+
+     [Footnote 249-4: In Mecklenburg-Schwerin there was one
+     marriage
+                                 _1841._
+          On domanial lands, on every 137 of population.
+          On manor      "        "    145       "
+          On monastery  "        "    163       "
+          In the cities "        "    115       "
+                                 _1850._
+          On domanial lands, on every 149 of population.
+          On manor      "        "    269       "
+          On monastery  "        "    175       "
+          In the cities "        "    104       "
+
+     The number of illegitimate births stood to the aggregate
+     number of births in 1800, as 1:16; in 1851, as 1:4.5; in
+     1850-55, as 1:4.8; in 1856-59, as 1:5.04; in 1865, as 1:4.0;
+     in 1866, as 1:4.8; in 1867, as 1:5.33; in 1868, as 1:6.0; in
+     1869, as 1:7.2; in 1870, as 1:7.08, In 260 localities, in
+     1851, 1/3 and more of the aggregate number of births were
+     illegitimate; in 209, ½ and more, and in 79 the entire
+     number! The small improvement afterwards made was probably
+     due in great part to emigration, which from 1850 to 1859
+     must have amounted to 45,000. How relative the idea of
+     over-population even in this respect is, is shown by the
+     small number of illegitimate births in very densely
+     populated parts of England--Lancashire, Middlesex, Warwick,
+     Stafford, West York--while districts as thinly populated as
+     North York, Salop, Cumberland, Westmoreland, have very many
+     illegitimate births. The number increases in the best
+     educated districts, where their "education" begins to cause
+     them to make "prudent" and long delays in marrying.
+     (_Lumley_, Statistics of Illegitimacy: Statist. Journal,
+     1862.)]
+
+     [Footnote 249-5: Strikingly more favorable influence of the
+     _ecclesia pressa_. In Prussia, in 1855, the Evangelicals had
+     12.3 legitimate births for one illegitimate; the Catholics
+     19.4, the Jews 36.7, the Mennonites 211.5. (_v. Viebahn_,
+     II, 226.)]
+
+     [Footnote 249-6: The relative number of illegitimate births
+     in many nations of to-day is unfortunately an increasing
+     one. In France, in 1801, only 4.6 per cent. of all live
+     births were illegitimate; in 1811, 6.09; in 1821, 7.07; in
+     1830, 7.2; in 1857, 7.5; 1861-65, 7.56 per cent. The German
+     especially must confess with deep shame that the southern
+     half of the fatherland presents a very unfavorable picture
+     in this respect. Can a nation be free when its capital,
+     Vienna (1853-56), counts on an average 10,330 illegitimate
+     and 11,099 legitimate births? Compare _Stein-Wappäus_,
+     Handbuch der Geogr., IV, 1, 193. According to observations
+     made between 1850 and 1860, in England between 1845 and
+     1860, there were in Holland for every 1,000 legitimate
+     births 44 illegitimate, in Spain 59, in England and Wales
+     71, in France 80, in Belgium 86, in Prussia 91, in Norway
+     96, in Sweden 96, in Austria 98, in Hanover 114, in Saxony
+     182, in Bavaria 279. (Statist. Journ., 1868, 153.) Compare
+     _Wappäus_, A. Bevölk. Stat., II, 387. In Russia, according
+     to _v. Lengefeld_, 36.9; in the electorate of Mark, 1724-31,
+     1 in 18. (_Süssmilch_, I, § 239.) During the 17th century it
+     is estimated that the ratio of illegitimate to legitimate
+     births in Merseburg was as 1:22-30, in Quedlinburg as
+     1:23-24, in Erfurt as 1:13½. (From the Kirchenbücher in
+     _Tholuck's_ Kircliches Leben, etc., I, 315 seq.) In Berlin
+     in 1640, only 1-2 per cent. of illegitimate births.
+     (_König_, Berlin, I, 235.) In Leipzig, 1696-1700, 3 per
+     cent.; 1861-65, 20 per cent. _Knapp_, Mitth. des. Leipz.
+     Statist. Bureaus, VI, p. X.]
+
+     [Footnote 249-7: Thus, in 1811-20, the still-born births in
+     Berlin, Breslau and Königsberg amounted to five per cent. of
+     the legitimate, and to eight per cent. of the illegitimate;
+     in the country places in Prussia, to 2¾ and 4¾ per
+     cent. Of 384 illegitimate children born in Stettin in 1864,
+     45 were still-born and 279 died in their first year. (_v.
+     Oettingen_, Moralstatistik, 879.) In the whole monarchy,
+     1857-58, three to 4 per cent. of legitimate children died at
+     birth, and 5 to 6 per cent. of the illegitimate; while
+     during the first year of their age 18-19 per cent. of the
+     former, and 34-36 per cent. of the latter, died (_v.
+     Viebahn_, II, 235). In France, in 1841-54, of the legitimate
+     births, an average of 4 per cent., and of illegitimate 7 per
+     cent., was still-born; and the probability of death during
+     the first year of life was 2.12 times as great for an
+     illegitimate child as for one born in lawful wedlock.
+     (_Legoyt._) After the first year the proportion changes.]
+
+     [Footnote 249-8: Genesis, 38; Joshua, 1, ff.; Judges, 16, 1,
+     ff. It must not here be overlooked that the Canaanites
+     possessed a much higher degree of economic culture than the
+     contemporary Jews. In Athens, Solon seems to have
+     established brothels to protect virtuous women. (_Athen._,
+     XIII, 59.) In France, as early a ruler as Charlemagne took
+     severe measures against prostitution. (_Delamarre_, Traité
+     de Police, I, 489.) Compare L. Visigoth., III, 4, 17, 5.]
+
+     [Footnote 249-9: Travelers are wont to be the first to make
+     use of prostitution. I need only mention the extremely
+     licentious worship of Aphrodite (Aschera) which the
+     Phoenicians spread on every side: in Cypria, Cytherae, Eryx,
+     etc. Connected with this was the mercenary character of the
+     Babylonian women (_Herodot._, I, 199); similarly in Byblos
+     (_Lucian_, De dea Syria, 6); Eryx (_Strabo_, VI, 272:
+     _Diod._, IV, 83), in Cypria; (_Herodot._, I, 105, 199);
+     Cytheria (_Pausan._, I, 14); Athenian prostitutes in Piräeus
+     and very early Ionian in Naucratis. (_Herodot._, II, 135.)
+     In all the oases on the grand highways of the caravans, the
+     women have a very bad reputation. Temporary marriages of
+     merchants in Yarkand, Augila, etc. (_Ritter_, Erdkunde, I,
+     999, 1011, 1013, II, 360; VII, 472; XIII, 414.) It is
+     remarkable how the legislation of German cities at the very
+     beginning of their rise was directed against male bawds and
+     prostitutes; at times with great severity, the death penalty
+     being provided for against the former and exile against the
+     latter, while the earlier legislation of the people was
+     directed only against rape. (_Spittler_, Gesch. Hannovers,
+     I, 57 ff.)]
+
+     [Footnote 249-10: Conception in the case of women of the
+     town is indeed not a thing unheard of, but abortion
+     generally takes place or is produced; their confinement is
+     extremely dangerous, and nearly all the children born of
+     them die in the first year of their life. (_Parent Du
+     Châtelet_, Prostitution de Paris, 1836, I, ch. 3.)]
+
+     [Footnote 249-11: In the time of Demosthenes, even the more
+     rigid were wont to say that people kept hetæras for
+     pleasure, concubines to take better care of them, wives for
+     the procreation of children and as housekeepers. (adv.
+     Neæram., 1386.)]
+
+     [Footnote 249-12: In Greece as well as in Rome, only slaves,
+     freedmen and strangers sold their bodies for hire; but under
+     the Emperors, prostitution ascended even into the higher
+     classes. (_Tacit._, Ann. II, 85; _Sueton._, Tiber, 35;
+     _Calig._,41; _Martial_, IV, 81.) Concerning the Empress
+     Messalina, see _Juvenal_, VI, 117 ff. Address of
+     Heliogabalus to the assembled courtesans of the capital,
+     whom the Emperor harrangued as _commilitones_. (_Lamprid_,
+     V.; Heliogabali, 26.) In Cicero's time, even a man of such
+     exalted position as M. Coelius was paid for cohabitation
+     with Clodia, and even moved into her house. (_Drumann_,
+     Gesch. Roms., II, 377.) Even in Socrates' time, the hetæras
+     at Athens were probably better educated than wives: Compare
+     _Xenophon_, Memorabilia, III, 11.]
+
+     [Footnote 249-13: On the Pornographs of antiquity, see
+     _Athen._, XIII, 21. Even _Aristophanes_ was acquainted with
+     some of the species. (Ranæ, 13, 10 ff.) Compare _Aristot._,
+     Polit., III, 17. _Martial_, XII, 43, 96. Of modern nations,
+     Italy seems to have been the first to produce such poison
+     flowers: _Antonius Panormita_ (ob. 1471); _Petrus Aretinus_
+     (ob. 1556). Of the disastrous influence on morals, during
+     his time, of obscene pictures, _Propert_, II, 5, complains.
+     It is dreadfully characteristic that even a Parrhasios
+     painted wanton deeds of shame. (_Sueton._, Tiber, 44), and
+     that Praxiteles did not disdain to glorify the triumph of a
+     _meretrix gaudens_ over a _flens matrona_. (_Plin._, H. N.,
+     XXXIV, 19.) But indeed also Giulio Romano!]
+
+     [Footnote 249-14: Compare _Jacobs'_ Vermischte Schriften,
+     IV, 311 ff.: _Murr_, Die Mediceische Venus und Phryne,
+     1804.]
+
+     [Footnote 249-15: The number of registered prostitutes in
+     Paris, in 1832, amounted to 3,558; in 1854, to 4,620
+     (_Parent Du Châtelet_, ch. 1, 2); in 1870, to 3,656. These
+     figures are evidently much below the real ones. Compare the
+     extracts from the abundant, but, in particulars, very
+     unreliable literature on the great sin of great cities, in
+     _v. Oettingen_, Moralstatistik, 452 ff. According to the
+     Journal des Econ., Juin, 1870, 378 ff., there was an
+     aggregate of 120,000 _femmes, qui ne vivent que de
+     galanterie_.]
+
+     [Footnote 249-16: _Nequitias tellus scit dare nulla magis_,
+     says _Martial_, of Egypt. Worship of Isis, in Rome:
+     _Juvenal_, VI, 488 ff. See, further, _Herodot._, II, 46, 89;
+     _Strabo_, XVII, 802. On Syria, see Genesis, 19, 4 ff., 9
+     seq.; Leviticus, 18, 22 seq., 20, 13, 15. The _cunnilingere_
+     of Phoenician origin. (_Heysch_, _v._ σκύλαξ.) Frightful
+     frequency of the _fellare_ and _irrumare_ in Tarsis: _Dio
+     Chrysost._, Orat, 33. The Scythians also seem to have
+     learned the νοῦσος θήλεια (pederasty?) in Syria: _Herodot._,
+     I, 105. Similarly during the crusades.]
+
+     [Footnote 249-17: Compare _Becker_, Charicles, I, 347 ff.
+     _Æschines_ condemns this vice only when one prostitutes
+     himself for money (in Timarch., 137). _Lysias_, adv. Simon,
+     unhesitatingly speaks to a court about a contract for hire
+     for purposes of pederasty. Compare _Æschin._, l. c., 159,
+     119, where such a contract is formally sued on. Industrial
+     tax on pederastic brothels. (_Æschin._. I, c. R.)
+     _Aristophanes_ alludes to obscenity still more shameful:
+     Equitt., 280 ff.; Vespp., 1274 ff., 1347; Pax., 885; Ranæ,
+     1349.]
+
+     [Footnote 249-18: _Valer. Max._, VI, 1, 7, 9 ff. The Lex
+     Julia treats it only as _stuprum_: L. 34, § 1. Digest, 48,
+     5; Paulli Sentt. receptt., II, 26, 13. Permitted later until
+     Philip's time, in consideration of a license-fee. _Aurel.
+     Vict._, Caes., 28. Earliest traces of this vice in the year
+     321 before Christ. (_Suidas_, v. Γαίος Λαιτώριος.) Later, it
+     caused much scandal when the great Marcellus accused the
+     ædile Scatinus of making shameful advances to his son.
+     (_Plutarch_, Marcell., 2.)]
+
+     [Footnote 249-19: _Tibull_, I, 4. Even the "severe"
+     _Juvenal_ was not entirely disinclined to pederasty, and
+     _Martial_ does not hesitate to boast of his own pederasty
+     and onanism. (II, 43, XI, 43, 58, 73, XII, 97.)]
+
+     [Footnote 249-20: _Cicero_, ad. Div., VIII, 12, 14.]
+
+     [Footnote 249-21: _Sueton._, Tiber, 43 ff.; Nero, 27 ff.
+     _Tacit._, Ann., VI, 1; Lamprid. Commod., 5, 10 seq.; Heliog.
+     passim. On the _greges exoletorum_, see also _Dio Cass._,
+     LXII, 28; LXIII, 13; _Tacit._, Ann., XV, 37. _Tatian_, ad
+     Graecos, p. 100. Even Trajan, the best of the Roman
+     emperors, held similar ones. (Ael. Spartian, V, Hadr., 2.)
+     Trade in the prostitution of children at the breast.
+     (_Martial_, IX, 9.) The collection of nearly all the obscene
+     passages in the ancient classics elucidated with a shameful
+     knowledge of the subject in the additions to _F. C.
+     Forberg's_ edition of the Hermaphroditus of _Antonius
+     Panormita_, 1824.]
+
+     [Footnote 249-22: How long this moral corruption lasted may
+     be inferred from the glaring contrast between the purity of
+     the Vandals at the time of the migration of nations. Compare
+     _Salvian_, De Gubern. Dei, VII, passim.]
+
+     [Footnote 249-23: In keeping with the vicious counter
+     tendencies described in this section, is the increasing
+     frequency of the rape of children in France. The average
+     number of cases between 1826 and 1830 was 136; between 1841
+     and 1845, 346; between 1856 and 1859, 692. Infanticide also
+     increased between 1826 and 1860, 119 per cent. (_Legoyt_,
+     Stat. comparée, 394.)]
+
+
+SECTION CCL.
+
+INFLUENCE OF THE PROFANATION OF MARRIAGE ON POPULATION.
+
+D. In the preceding paragraphs, we treated of the wild shoots of the
+tree of population. But the roots of the tree are still more directly
+attacked by all those influences which diminish the sacredness of the
+marriage bond. It is obvious how heartless _marriages de
+convenance_,[250-1] inconsiderate divorces and frequent adulteries
+mutually promote one another. And the period of Roman decline also is
+the classic period of this evil. I need only cite the political
+speculation in which Caesar gave his only daughter to the much older
+Pompey, or the case of Octavia, who when pregnant was compelled to marry
+the libertine Antonius.[250-2] Instead of the Lucretias and Virginias of
+older and better times, we now find women of whom it was said: _non
+consulum numero, sed maritorum annos suos computant_.[250-3] In the
+numerous class of young people who live without the prospect of any
+married happiness of their own, we find a multitude of dangerous persons
+who ruin the married happiness of others, especially where marriage has
+been contracted between persons too widely separated by years.
+_Corrumpere et corrumpi sæculum vocatur._ (_Tacitus_).[250-4] It is easy
+to understand how all this must have diminished the desire of men to
+marry. Even Metellus Macedonicus (131 before Christ) had declared
+marriage to be a necessary evil.[250-5] [250-6]
+
+In such ages young girls are kept subject to a convent-like discipline,
+that their reputation may be protected and that they may be able to get
+husbands; but once married they are wont to be all the more lawless. In
+a pure moral atmosphere, precisely the opposite course obtains.[250-7]
+
+And so it has been frequently observed, that among declining nations the
+social differences between the two sexes are first obliterated and
+afterwards even the intellectual differences. The more masculine the
+women become, the more effeminate become the men. It is no good symptom
+when there are almost as many female writers and female rulers as there
+are male. Such was the case, for instance, in the Hellenistic kingdoms,
+and in the age of the Cæsars.[250-8] What to-day is called by many the
+emancipation of woman would ultimately end in the dissolution of the
+family, and, if carried out, render poor service to the majority of
+women. If man and woman were placed entirely on the same level, and if
+in the competition between the two sexes nothing but an actual
+superiority should decide, it is to be feared that woman would soon be
+relegated to a condition as hard as that in which she is found among all
+barbarous nations. It is precisely family life and higher civilization
+that have emancipated woman. Those theorizers who, led astray by the
+dark side of higher civilization, preach a community of goods, generally
+contemplate in their simultaneous recommendation of the emancipation of
+woman a more or less developed form of a community of wives. The grounds
+of the two institutions are very similar. The use of property and
+marriage is condemned because there is evidence of so much abuse of
+both. Men despair of making the advantages that accompany them
+accessible to all, and hence would refuse them to every one; they would
+improve the world without asking men to make a sacrifice of their evil
+desires. The result, also, would be about the same in both cases. (§
+81.) So far would prostitution and illegitimacy be from disappearing
+that every woman would be a woman of the town and every child a bastard.
+There would, indeed, be a frightful hinderance under such circumstances
+to the increase of population. The whole world would be, so to speak,
+one vast foundling asylum.[250-9]
+
+But there is another sense to the expression emancipation of woman. It
+should not be ignored that, in fully peopled countries, there is urgent
+need of a certain reform in the social condition of woman. The less the
+probability of marriage for a large part of the young women of a country
+becomes, the more uncertain the refuge which home with its slackened
+bonds offers them for old age, the more readily should the legal or
+traditional barriers which exclude women from so many callings to which
+they are naturally adapted be done away with.[250-10] This is only a
+continuation of the course of things which has led to the abolition of
+the old guardianship of the sex. It may be unavoidable not to go much
+farther sometimes; but such a necessity is a lamentable one.[250-11] The
+best division of labor is that which makes the woman the glory of her
+household, only it is unfortunately frequently impossible.
+
+     [Footnote 250-1: This expression is applicable only in times
+     of higher civilization where individual disposition of self
+     is considered the most essential want. During the middle
+     ages, when the family tie is yet so strong, the contract of
+     marriage was generally formed by the family; but this was
+     not, as a rule, felt a restraint. In France, at the present
+     time, of 1,000 men who marry before their 20th year, 30.8
+     marry women from 35 to 50 years of age, and 4.8 who marry
+     women over 50 years of age. (_Wappäus_, A. Bevölkerung.
+     Stat. II, 291.)]
+
+     [Footnote 250-2: _Propertius_ bitterly complains of the
+     corruption prevalent in love affairs in his time. (III, 12.)
+     In the Hellenic world, also, among the successors of
+     Alexander the Great, there was a revoltingly large number of
+     _marriages de convenance_, so that even the old Seleucos
+     took to wife the grand-daughter of his competitor Antegonos,
+     Lysimachos the daughter of Ptolemy etc. _Dante's_ lament
+     over the anxiety of fathers to whom daughters are born
+     concerning their future dowry: Paradiso, XV, 103. Florentine
+     law of 1509, against large dowries: _Machiavelli_, Lett.
+     fam., 60. In the United States, marriage dowries are of
+     little importance. (_Graf Görtz_, Reise um die Welt, 116.)
+
+     [Footnote 250-3: _Seneca_, de Benef., III, 16--a frightful
+     chapter. Also, I, 9. _Juvenal_ speaks of ladies who in five
+     years had married eight men (IV, 229, seq.), and _Jerome_
+     saw a woman buried by her 23d husband, who himself had had
+     21 wives, one after another, (ad. Ageruch, I, 908.) The
+     first instance of a formal divorce _diffareatio_ is said to
+     have occurred in the year 523, after the building of the
+     city (_Gellius_, IV, 3), a clear proof that the Romulian
+     description of marriage, as κοινωνία ἁπάντων ἱερῶν καὶ
+     χρημάτων (Dionys., A. R. II., 25), was long a true one. The
+     old manus-marriage certainly supposes great confidence of
+     the wife and her parents in the fidelity of the husband,
+     while the marriage law of the time of the emperors relating
+     to estates never lost sight of the possibility of divorce.
+     The facility of obtaining amicable divorces (the most
+     dangerous of all) appears from the gifts allowed, _divorti
+     causa_, in L., 11, 12, 13, 60, 61, 62; Dig., XXIV, 1. In
+     Greece, we meet with the characteristic contrast, that, in
+     earlier times, wives were bought, but that later, large
+     dowries had to be insured to them or the risk of divorce at
+     pleasure be assumed. (_Hermann_, Privataltherthümer, § 30.)
+     How women themselves married again, even on the day of their
+     divorce, see _Demosth._, adv. Onet., 873; adv. Eubul., 1311.
+     On Palestine, see Gospel of _John_, 4, 17 ff. Concerning
+     present Egypt, where prostitution is carried on especially
+     by cast-off wives, see _Wachenhusen_, vom ägypt, armen Mann,
+     II, 139. During the great French revolution, divorces were
+     so easily obtained that but little was wanted to make a
+     community of wives. (Vierzig Bücher, IV, 205; Handbuch des
+     französischen Civilrechts, § 450.) The more divorces there
+     are in a Prussian province, the more illegitimate births
+     also. Thus, for instance, Brandenburg, 1860-64, had 1,721
+     divorces, and one illegitimate birth for every 7.8
+     legitimate (max.). Rhenish Prussia, four divorces and one
+     illegitimate birth for every 25.4 legitimate (min.). In the
+     cities of Saxony, it is estimated there are, for every
+     10,000 inhabitants, 36 divorced persons; in the country,
+     only 19 (_Haushofer_, Statistik, 487 seq.); in Württemberg,
+     20; Thuringia, 33; all Prussia, 19; Berlin, 83. (_Schwabe_,
+     Volkszählung von, 1867 p. XLV.)]
+
+     [Footnote 250-4: _Cicero_, in his speech for Cluentius,
+     gives us a picture of the depth to which families in his
+     time had fallen through avarice, lust, etc., which it makes
+     one shudder to contemplate. Moreover, of the numerous
+     families mentioned in _Drumann's_ history, there are
+     exceedingly few which, either actively or passively had not
+     had some share in some odious scandal. Concerning even Cato,
+     see _Plutarch_, Cato, II, 25. Messalina's systematic
+     patronage of adultery: _Dio Cass._, LX, 18.]
+
+     [Footnote 250-5: _Gellius_, I, 6. In Greece, the same
+     symptoms appear clearly enough, even in _Aristophanes_:
+     compare especially his Thesmophoriazusae. The frequently
+     cited woman-hatred of Euripides is part and parcel hereof;
+     also the fact that since Socrates' time, the most celebrated
+     Grecian scholars lived in celibacy. (_Athen._, XIII, 6 seq.;
+     _Plin._, H. N., XXXV, 10.) Compare Theophrast in Hieronym.
+     adv. Jovin, I, 47, and _Antipater_, in _Stobæus_, Serm.,
+     LXVII, 25.]
+
+     [Footnote 250-6: In modern Italy, the monstrosity known as
+     cicisbeism had not assumed any great proportions before the
+     17th century, in consequence of the bad custom which
+     permitted no woman to appear in public without such
+     attendant, and ridiculed the husband for accompanying his
+     own. In the time of the republics, the conventual seclusion
+     of girls and the duenna system were not yet customary.
+     (_Sismondi_, Gesch. der Italiennischen Republiken, XVI, 251,
+     ff., 498, ff.) Adultery punished with death in many cities
+     of medieval Italy: for instance, the Jus Municipale
+     Vicentinum, 135. Concerning the Spanish cicisbeos, who
+     evince as much shamelessness as fidelity, see _Townsend_,
+     Journey, II, 142, ff. _Bourgoing_, Tableau, II, 308, ff. The
+     so-called _cortejos_ are generally young clerics or young
+     officers.]
+
+     [Footnote 250-7: A young American woman says to Mrs. Butler:
+     "We enjoy ourselves before marriage, but in your country
+     girls marry to obtain a greater degree of freedom, and
+     indulge in the pleasures and dissipations of society." While
+     the young girls are always to be met with in the streets,
+     wives are to be found always in the kitchen. (_Mrs. Butler_,
+     American Journal, II, 183.) Compare _Beaumont_, Marie ou
+     l'Esclavage aux États-Unis, I, 25 ff. 349. The opposite
+     extreme in Italy, where, therefore, too favorable an
+     inference should not be drawn from the small number of
+     illegitimate births. Morally considered, one act of adultery
+     outweighs 10 _stupra!_ Even in the age of the renaissance,
+     the free intercourse of young girls in England and the
+     Netherlands made a favorable impression on Italian
+     travelers; _Bandello_, Nov., II, 42; IV, 27.
+
+     Similar contrast in antiquity between Ionian and Dorian
+     women. Wives were more rigidly excluded from entering
+     gymnasia for males in Sparta than young girls. (_Pausan._,
+     V, 6, 5; VI, 20, 6; _Plato_, De Legg., VII, 805; _Xenoph._,
+     De Rep. Laced., I.) Compare _K. O. Müller_, Dorier, II, 276
+     ff.]
+
+     [Footnote 250-8: _Plato_, De Legg., VI, 774, and
+     _Aristotle_, Polit., II, 6; V, 9, 6; VI, 2, 12, complain of
+     the too great supremacy of women in their day. Colossal land
+     ownership of Lacedemonian women. (_Aristot._, Polit., II, 6,
+     11.) And yet even Plato advises that women be allowed to
+     participate in the gymnasia, in the assemblies and to hold
+     public office, etc. They were indeed different from men, but
+     not as regards those qualities which fit for ruling. (De
+     Rep., V, 451 ff.; De Legg., VI, 780; VII, 806.) That the
+     Roman courtesans wore the male toga and were therefore
+     called togatæ. _Horat._, Serm., I, 2, 63 ff., 80 ff.;
+     _Martial_, VI, 64, recalls certain caricatures of very
+     recent times; for instance, Bakunius' demand that both sexes
+     should wear the same kind of dress. (_R. Meyer_,
+     Emancipationskampf des 4 Standes, I, 43.) Later, concerning
+     wifish men, see _Apuleius_, Metam., VIII; _Salvian_, Gubern.
+     Dei VII. We are led to a related subject in noticing that in
+     England of persons charged with serious crimes there were 10
+     women to 30 men; in Russia only 10 women to 81 men. (_v.
+     Oettingen_, 758.) As _Riehl_ remarks, Famille 15, the
+     undeniable _consensus gentium_, that the costume of men
+     should differ from that of women, is an equally undeniable
+     protest against this species of emancipation. I would add
+     that, as among ourselves in the earliest years of childhood,
+     so also among lowly civilized peoples, the difference in
+     costumes of the sexes is least apparent. (_Tacit._, Germ.,
+     17; Plan. Carpin., Voyage en Tartarie; Add. éd., Bergeron,
+     art. 2.) Even the physical difference is smaller there
+     (_Waitz_, Anthropologie der Naturvölker, I, 76), especially
+     in the size of the pelvis. (_Peschel_, Völkerkunde, 81,
+     86.)]
+
+     [Footnote 250-9: Even _Plato_ complains of the unnatural
+     relations of the sexes to one another, and would instead
+     have the unions of couples of short duration introduced, and
+     complete community of children under the direction of the
+     state. (De Rep., V.) The Stoic Chrysippos approves the
+     procreation of children by parent and child, brother and
+     sister. (_Diog. Laert._, VII. 188.) In the time of Epictetus
+     (Fr. 53, ed. Duebner), the Roman women liked to read Plato's
+     republic, because in his community of wives they found an
+     excuse for their own course. The Anabaptists appealed to
+     Christ's saying that he who would not lose what he loved
+     could not be his disciple. Thus the women should sacrifice
+     their honor and suffer shame for Christ's sake. Publicans
+     and prostitutes were fitter for heaven than honorable wives,
+     etc. (_Hagen_, Deutschlands Verhältnisse im
+     Reformationszeitalter, III, 221.)
+
+     In our days, the theory inimical to the family is based
+     rather on misconceived ideas of freedom and science. The
+     Christian mortification of the flesh is, it is said,
+     one-sidedness; and that the flesh no less than the spirit is
+     of God. Hence it is that Saint Simonism would reconcile the
+     two, and "emancipate" the flesh. (_Enfantin_, Economie
+     politique, 2d ed., 1832.) _Fourier_, in his Harmonie, allows
+     each woman to have one _époux_ and two children by him; one
+     _géniteur_ and one child by him; one _favori_ and as many
+     _amants_ with no legal rights as she wishes. His "harmonic"
+     world he would protect against over-population by four
+     organic measures: the _régime gastrosophique_, the object of
+     which is by first-class food to oppose fecundity; _la vigeur
+     des femmes_, because sickly women have most children;
+     _l'exercise intégral_, since by the exercise of all the
+     organs of the body the organs of generation are latest
+     developed; lastly the _mœurs phanérogames_, the minuter
+     description of which _Fourier's_ disciples omitted in the
+     later editions. (_N. Monde_, 377, ff.) _Fourier_ was of
+     opinion that only one-eighth of the mothers should be
+     occupied with the bringing up of the children, and that a
+     child's own parents were least adapted to bringing it up, as
+     is proved by the natural aversion of the child to mind the
+     advice or obey the injunctions of its own parents. (186 ff.)
+     If all were left free to choose their employment, two-thirds
+     of all men would devote themselves to the sciences, and
+     one-third of all women; the fine arts would be cultivated by
+     one-third of the men and two-thirds of the women. In
+     agriculture, two-thirds of the men and one-third of the
+     women would take to large farming, and to small farming
+     one-third of the men and two-thirds of the women.
+
+     The Communistic Journal, L'Humanitaire, is in favor of a
+     community of wives proper, while _Cabet_ leaves the question
+     an open one. Compare, besides, _Godwin_ on Political
+     Justice, 1793, VIII, ch. 8. In beautiful contrast to this
+     are _J. G. Fichte's_ (compare, _supra_, § 2) views on
+     marriage and the family in the appendix to his Naturrecht,
+     although he, too, would largely facilitate divorce.]
+
+     [Footnote 250-10: _J. Bentham_, Traité de Législation, II,
+     237, seq., says that it is scarcely decent for men to engage
+     in the toy trade, the millinery business, in the making of
+     ladies' dresses, shoes, etc. Compare _M. Wolstoncraft_,
+     Rettung der Rechte des Weibes, translated by Salzmann, 1793;
+     _v. Hippel_, über die bürgerliche Verbesserung der Weiber,
+     1792. Rich in remarks on the woman question are _K. Marlo_,
+     System der Weltökonomie, and _Schäffle_, Kapitalismus und
+     Socialismus, 444 ff., who, for the most part, supports him.
+     Compare _Josephine Butler_, Woman's Work and Woman's
+     Culture: a Series of Essays, 1792; _Leroy-Beaulieu_, Le
+     Travail des Femmes au. 19, siècle, 1873. Between 1867 and
+     1871, the number of men dependent on their own action in
+     Berlin, increased 22.9 per cent.; of women dependent on
+     their own labor, 36.6 per cent. (_Schwabe_, Volkszählung,
+     1871, 84.)]
+
+     [Footnote 250-11: _J. S. Mill_, on the other hand, rejoices
+     over the great economic independence of women, and expects
+     from it especially a decrease in the number of thoughtless
+     marriages. (Principles, IV, ch. 7, 3. Compare by the same
+     author, The Subjection of Women, 1869.) I need only mention
+     the dramatic art and the factory proletariat, where the
+     independence in question obtains and indeed with very
+     different results! It is very characteristic of the time,
+     that _Homer_(Il., XII, 433) considered the spinning for
+     wages as despicable, while _Socrates_, in the mournful
+     period following the Peloponnesian war, earnestly counsels
+     that free women without fortune should employ themselves
+     with home industries. (_Xenoph._, Memor., II, 7.) It is in
+     keeping with this that during the time of scarcity after the
+     Peloponnesian war even female citizens hired themselves out
+     as nurses. (_Demosth._, adv. Eubul., 1309, 1313.) The
+     frequency of such engagements has, in many respects, causes
+     related to these which produce a frequency of illegitimate
+     births.]
+
+
+SECTION CCLI.
+
+POLYANDRY.--EXPOSURE OF CHILDREN.
+
+In some of the countries of farther Asia, the immoral tendencies counter
+to over-population which with us take the direction of illegitimate
+births and acts of adultery, assume the guise of formal institutions
+established by law. I need only cite the polyandry of East India, Thibet
+and other mountainous regions of Asia, which is indeed modified somewhat
+by the fact that, as a rule, only several brothers have one wife in
+common.[251-1]
+
+That unnatural institution is, in many localities, based on this, that a
+great many of the newly born female children are killed or at least sold
+in foreign parts after they have grown.[251-2] In addition to this, we
+have the very great encouragement given to celibacy in the Himalayas, so
+that only monks can attain to a higher education and to the higher
+honors.[251-3] In many parts of the East Indies, we find a legally
+recognized community of wives, which is but slightly modified[251-4] by
+the difference of caste; and almost everywhere, that looseness of
+general morality which usually characterizes declining nations.[251-5]
+
+China is, as a rule, considered the classic land of child-exposure. And
+a writer of the country, who is considered one of the principal
+authorities against the exposure of children, actually claims that it is
+reprehensible only when one has property enough to support them. The
+murder of daughters he especially reprobates as "a struggle against the
+harmony of nature; the more a father performs this act, the more
+daughters are born to him; and no one has ever heard that the birth of
+sons was promoted in this way."[251-6] Moreover, the exposure of
+children in the later periods of antiquity played an important part. In
+Athens, the right of a father to expose his child was recognized by law.
+Even a Socrates accounts it one of the occasional duties of midwives to
+expose children.[251-7] Considered from a moral point of view, Aristotle
+has nothing to say against abortion.[251-8] In Rome, a very ancient law,
+which was still in existence in 475 before Christ, made it the duty of
+every citizen to have and to bring up children.[251-9] It was very
+different in the time of the emperors,[251-10] and until Christianity,
+made the religion of the state, caused a legal prohibition against the
+exposure of children to be passed.[251-11] [251-12]
+
+     [Footnote 251-1: _Turner_, Embassy to Thibet, II, 349, tells
+     of five brothers who lived satisfied thus under one roof.
+     (_Jacquemont_, Voyage en Inde, 402.) In Ladakh, all the
+     children are ascribed to the eldest brother, to whom also
+     the property belongs; all the younger brothers are his
+     servants and may be expelled the house by him. (_Neumann_,
+     Ausland, 1866, No. 16 seq.) In Bissahir, on the other hand,
+     the eldest child belongs to the eldest brother, the second
+     to the second, etc. Here the wife is bought by all the
+     brothers together and treated precisely as a slave.
+     (_Ritter_, Erdkunde, III, 752.) In Bhutan, the men move into
+     the house of the woman, who is frequently old, and who
+     before marriage, and up to her 25th or 30th year, has
+     generally lived very lawlessly. (_Ritter_, IV, 195.) Among
+     the Garos, the wife may leave the man at pleasure and not
+     lose her property or her children, while her husband by her
+     rejection of him loses both. (_Ritter_, V, 403.) Even in
+     Mahabarata, polyandry occurs among the Northern Indians.
+     Similarly, among the Indo-Germanic tribes in Middle Asia
+     (_Ritter_, VII, 608); according to Chinese sources in
+     ancient Tokharestan (_Ritter_, VII, 699), and among the
+     Sabæans (_Strabo_, XVI, 768). Even in ancient Sparta.
+     (_Polyb._, XII, 6.)]
+
+     [Footnote 251-2: In lower Nerbudda, the poisoning of new
+     born female children was very common about the beginning of
+     this century. In Kutch, people prefer to marry persons from
+     foreign countries, and murder their own daughters.
+     (_Ritter_, VI, 623, 1054.) Similarly, even in the Indian
+     Arcadia, the land of the Nilgherrys (V, 1035 seq.). In
+     Cashmir, all the beautiful girls are sold in the Punjab and
+     in India from their eighth year upwards. (VII, 78.)
+     Similarly in the Caucasus and in the mountainous region of
+     Badakschan. (VII, 798 ff.) _v. Haxthausen_, Transkaukasia,
+     1856, I, ch. 1, tells how the Russians captured a vessel
+     carrying Circassian slaves into Turkey. They left them their
+     choice, to go back home, marry in Russia, or to continue
+     their journey to Constantinople. They all unhesitatingly
+     chose the last! There is an echo of something analogous even
+     in the Semiramis saga.]
+
+     [Footnote 251-3: In many parts of Thibet and Rhutan the
+     fourth son, and in some places the half of the young men,
+     become lamas. (_Ritter_, Erdkunde, IV, 149, 206.)]
+
+     [Footnote 251-4: Among the Garos and Nairs, as well as among
+     the Cossyahs, in Northwestern Farther India, the children
+     have no father, but consider their brothers on the mother's
+     side their nearest male relatives. Inheritance also takes
+     this direction. (_J. Mill_, History of British India, I, 395
+     seq. _Buchanan_, Journey through Mysore, II, 411 seq.
+     _Ritter_, V, 390 seq., 753.) Similarly, among the Lycians:
+     _Herodot._, I, 173. Whether the peculiar custom of many old
+     German people, of which _Tacitus_, Germ., 20, makes mention,
+     does not point to an original community of wives, _quære_.]
+
+     [Footnote 251-5: Even the most debauched European is a
+     pattern of modesty compared with the Indians themselves.
+     (Edinb. Rev., XX, 484.) On the frightful development of
+     unnatural as well as natural crimes against chastity among
+     the Chinese, see _G. Schlegel_, in the memoirs of the
+     Genoostchap van Kunsten en Wetenschappen in Batavia, Band.
+     XXXII, and Ausland, Januar., 1868.]
+
+     [Footnote 251-6: According to _J. Bowring's_ official
+     report: Athenæum, 17 Nov., 1855. That the exposure of
+     children is allowed by law in China, and that many poor
+     couples marry with the intention of exposing them, is
+     unquestionable. But the reports concerning the extent of the
+     evil differ materially. The Jesuits estimated that in Pekin
+     alone from 2,000 to 3,000 children were exposed in the
+     streets. To this must be added the many thrown into the
+     water or smothered in a bath-tub immediately after birth.
+     Compare Lettres édif., XVI, 394 ff.; _Barrow_, 166 ff. The
+     street-foundlings were picked up by the police and placed in
+     wagons, living and dead together, and cast into one pit in a
+     part of the city. Other accounts are much more favorable:
+     thus that of _Ellis_, Voyage, ch. 7, who was there in 1816,
+     and of _Timkowski_, Reise, II, 359. Compare the quotations
+     in _Klemm_, Kulturgeschichte, VI, 212.]
+
+     [Footnote 251-7: _Petit_, Legg. Att., 144. Compare _Becker_,
+     Charicles, I, 21 ff.; _Plato_, Theæt., 150 ff. In Plato's
+     state, a system of exposure on a large scale is one of the
+     most essential foundations of the whole. (De Re., V, 461.)]
+
+     [Footnote 251-8: Aristotle advised that males should not
+     marry before their 37th year, and that at least after their
+     55th year they should bring no more children into the world.
+     No family was allowed to have more than a definite number of
+     children. (Polit., VII, 14.) There are even yet pictures of
+     Venus trampling an embryo under foot. (_R. O. Müller_,
+     Denkmäler der alten Kunst, II, No. 265.) Compare, _per
+     contra_, _Stobaeus_, Serm., LXXIV, 91; LXXI, 15.]
+
+     [Footnote 251-9: _Dionys. Hal._, Ant. Rom., IX, 22.]
+
+     [Footnote 251-10: _Plutarch_, De Amore Prol., 2, Minut.
+     Felix Octav., 30. That it seemed entirely right, when
+     persons had "enough" children, to put the others to death,
+     is proved by the catastrophe in _Longus'_ idyllic romance,
+     IV, 24, 35. Even men like _Seneca_ (Contr., IX, 26; X, 33)
+     and _Tacitus_ (Ann., III, 25 ff.) were actually in favor of
+     the right of exposing children. On the frequency of
+     artificial abortion, see _Juvenal_, VI, 594. Semi-castration
+     of young slaves for libidinous women who did not want to
+     bear children. (_Juvenal_, VI, 371 ff.; _Martial_, I, V67.)]
+
+     [Footnote 251-11: Under Constantine the Great, 315 after
+     Christ. _Theod._, Cod., XI, 27, 1]
+
+     [Footnote 251-12: It is an unfortunate fact that many modern
+     nations approximate more closely to this abomination of the
+     ancients than is generally supposed. The infrequency of
+     illegitimate children in Romanic southern nations is offset
+     by the enormous number of exposures almost after the manner
+     of the Chinese. See the tables in _v. Oettingen_, Anhang,
+     95. In Milan, between 1780 and 1789, there were, in the
+     aggregate, 9,954 children abandoned; between 1840 and 1849,
+     39,436. (_v. Oettingen_, 587.) On abortion in North America,
+     and the numberless bold advertisements of doctors there that
+     they are ready to remove all impediments to menstruation
+     "from whatever cause," see _v. Oettingen_, 523, and Allg.
+     Zeitung, 1867, No. 309. It would be a very mournful sign of
+     the times if the work: Principles of Social Science, or
+     physical, sexual and natural Religion; an Exposition of the
+     real Cause and Cure of the three great Evils of Society,
+     Pauperism, Prostitution and Celibacy, by a Doctor of
+     Medicine (Berlin, 1871), were really a translation of an
+     alleged English original. It is throughout atheistic,
+     materialistic and immoral, concerned only with one
+     fundamental idea: to instruct women how to prevent
+     conception!]
+
+
+SECTION CCLII.
+
+POSITIVE DECREASE OF POPULATION.
+
+The way of vice is steep. Where the aversion to the sacrifices and to
+the limitations of liberty imposed by marriage, has permeated the great
+body of the people; where, indeed, the immoral tendencies counter to
+population described in § 249 ff. have been largely developed, they very
+readily cease to be mere checks, and population may positively decline.
+While in the case of fresh and vigorous nations, the mere loss of men
+caused by wars, pestilence, etc., is very easily made up;[252-1] that
+reproductive power may here be too much enfeebled to fill up the gap
+again. It has happened more than once that the decline of a period has
+been frightfully promoted by great plagues, which have swept away in
+whole masses the remnants of a former and better generation.[252-2] The
+return of the relatively small population of its childhood to a nation
+in its senility cannot be ascribed exclusively to a decrease in its
+means of subsistence and to a less advantageous distribution of
+them.[252-3] [252-4] The depopulation, however, of Greece and Rome in
+their decline might be hard to understand were it not for the slavery of
+the lower class.[252-5]
+
+     [Footnote 252-1: It is said that the plague which, in 1709
+     and 1710, decimated Prussia and Lithuanian, carried away
+     one-third of the inhabitants, and even one-half of those at
+     Dantzig. While previously the number of marriages annually
+     was, on an average, 6,082, it rose in 1711 to 12,028. In
+     1712 it was 6,267, and sank some years afterwards on account
+     of the decrease in population, to 5,000. (_Süssmilch_,
+     Göttl. Ordnung, I, Tab. 21.) Similar effects of the plague at
+     Marseilles, 1720. (_Messance_, Recherches sur la Population,
+     766.) In Russia, too, it was observed after the devastation
+     produced by the black death in 1347 and the succeeding
+     years, that the population again increased at an
+     extraordinarily rapid rate; and that an unusual number of
+     twins and triplets were born (?). (_Karamsin_, Russ. Gesch.,
+     IV, 230.) Compare _Dalin_ Schwed. Gesch., 11,384;
+     _Montfaucon_, Monuments de la Monarchie Française, I, 282.]
+
+     [Footnote 252-2: I would mention the Athenian pestilence
+     during the last years or Pericles; the Roman in the _orbis
+     terrarum_, between 250 and 265 B.C., which is said to have
+     destroyed one-half of the population of Alexandria.
+     (_Gibbon_, Hist. of the Roman Empire, ch. 10.) It also made
+     frightful ravages, intellectually, on the nationality of the
+     Romans. (_Niebuhr._) Thus, in England, the black death
+     contributed very largely to cause the disappearance of the
+     medieval spirit. (_Rogers._) Of great political importance
+     was the pestilence of Bagdad, which, in 1831, carried off
+     2/3 of the inhabitants. All national bonds seemed dissolved,
+     robbers ruled the country; the army of the powerful Doud
+     Pascha was carried off entirely, and his whole political
+     system, constructed after the model of that of Mehemet-Ali,
+     fell into ruin. Compare _Anth. Groves_, Missionary Journal
+     of a Residence at Bagdad, 1832.]
+
+     [Footnote 252-3: Among the Maoris, the number of sterile
+     women is 9 times as great as the average in Europe. Compare
+     Reise der Novara, III, 129.]
+
+     [Footnote 252-4: The decreasing number of English Quakers,
+     among whom, in 1680-89, there occurred 2,598 marriages, and
+     in 1840-49 only 659, finds expression in the unfrequency of
+     marriage, a comparatively small number of women and a small
+     number of children, all in conjunction with a small
+     mortality. (Statist. Journ., 1859, 208 ff.) There is no
+     reason to have recourse here to vice as a cause, and
+     scarcely to physiological reasons for an explanation,
+     because these phenomena are accounted for in great part by
+     the fact that adult males so frequently leave the sect.]
+
+     [Footnote 252-5: In this respect, however, there is a great
+     difference between bondage and slavery. As early a writer as
+     _Polybius_ speaks of the depopulation of Greece. (_Polyb._,
+     II, 55; XXXVII, 4.) He looks for the cause in this, that in
+     every family, for luxury's sake, either no children whatever
+     were wanted, or at most from one to two, that the latter
+     might be left rich. (Exc. Vat., 448.) Very remarkable,
+     _Seneca_, Cons. ad. Marc, 19. Further, _Cicero_, ad. Div.,
+     II, 5. _Strabo_, VII, 501; VIII, 595; IX, 617, 629.
+     _Pausan._, VII, 18; VIII, 7; X, 4; _Dio Chr._, VII, 34, 121;
+     XXXIII, 25. _Plutarch_ claimed that Hellas could, in his
+     time, number scarcely 3,000 hoplites, while in the time of
+     Themistocles, Megalis alone had put as many in the field.
+     (De Defectu Orac., S.) Antium and Tarentum similarly
+     declined under Nero. (_Tacit_., Ann., XIV, 27.) The
+     depopulation even of the capital, which began under
+     Tiberius, is apparent from _Tacit._, Ann., IV, 4, 27.
+     National beauty also declined with the nation's
+     populousness. _Æschines_ saw a great many beautiful youths
+     in Athens (adv. Timarch., 31); _Cotta_, only very few
+     (_Cicero_, de Nat. Deorum, I, 28); _Dio Chrysostomus_,
+     almost none at all (Orat., XXI). On the necessary lowering
+     of the military standard of measure, see _Theod._, Cod.,
+     VII, 13, 3, _Verget_, de Re milit., I, 5. The depopulation
+     of the later _orbis terrarum_ is confirmed by the easiness
+     of the new division of land with the German conquerors.
+     Compare _Gaupp_, Die Germanischen Niederlassungen und
+     Landtheilungen (1845), passim.]
+
+
+
+
+CHAPTER III.
+
+POPULATION-POLICY.
+
+
+SECTION CCLIII.
+
+DENSE POPULATION.--OVER-POPULATION.
+
+The nation's economy attains its full development wherever the greatest
+number of human beings simultaneously find the fullest satisfaction of
+their wants.
+
+A dense population is not only a symptom of the existence of great
+productive forces carried to a high point of utilization;[253-1] but is
+itself a productive force,[253-2] and of the utmost importance as a spur
+and as an auxiliary to the utilization of all other forces. The new is
+always attractive, by reason of its newness; but at the same time, we
+hold to the old too precisely because of its age: and the force of
+inertia would always turn the scales in favor of the latter. This
+inertia, both physical and mental is so general, that perhaps the
+majority of mankind would continue forever satisfied with their
+traditional field of occupation and with their traditional circle of
+food, were it not that an impulse as powerful and universal as the
+sexual and that of the love of children compelled them to extend the
+limits of both. That man might subdue the whole earth it was necessary
+that the Creator should make the tendency of man to multiply his kind
+more powerful than the original production-tendency of his earliest
+home. The unknown far-away deters as much as it attracts.[253-3] It is
+easy to see how the division and combination of labor become uniformly
+easier as population increases in density. Think only of large cities as
+compared with the country.[253-4] "Under-populated"[253-5] countries,
+which might easily support a large number of human beings, and which,
+notwithstanding have for a long period of time had only few inhabitants,
+are on this account abodes of poverty, regions where education and
+progress are unknown. While, therefore, it cannot be questioned that a
+nation under otherwise equal circumstances is more powerful and
+flourishing in proportion as its population embraces a large number of
+vigorous, well-to-do, educated and happy human beings, the last
+mentioned attributes should not be left out of consideration.
+
+The possibility of over-population is contested by a great many
+theorizers (§ 243); and, indeed, the complaints on this score are in
+most cases only a baseless pretext of the inertia which feels the
+pressure of the population without being helped and spurred thereby to
+an increase of the means of subsistence. This inertia itself, especially
+when it governs a whole nation, is a fact which cannot be ignored.
+Over-population, as I use the term, exists whenever the disproportion
+between the population and the means of subsistence operates in such
+away that the average portion of the latter which falls to the share of
+each is oppressively small, whether the effect produced thereby
+manifests itself in a surprisingly large mortality, or in the limitation
+of marriages and of the procreation of children carried to the point of
+hardship. Over-population of this kind is, as a rule, curable by
+extending the limits of the field of food, either as a result of the
+advance of civilization at home, or by emigration.
+
+That the whole earth should be incurably over-peopled is an exceedingly
+remote contingency.[253-6] But where, within a smaller circle, by reason
+of the great stupidity or weakness of mankind, or by the too great power
+of circumstances, over-population cannot act as a spur to new activity,
+it is indeed one of the most serious and most dangerous political
+diseases.[253-7] The immoderate competition of workmen involves the
+majority of the nation in misery, not only materially but also morally;
+one of the most dangerous temptations, for the rich to a contempt for
+human kind, for the poor to envy, dishonesty and prostitution. In every
+suffocating crowd, the animal part of man is wont to obtain the victory
+over the intellectual. Precisely the simplest, most universal and most
+necessary relations are most radically and disastrously affected by the
+difficulty or impossibility of contracting marriage, and the sore
+solicitude for the future of one's children.[253-8]
+
+     [Footnote 253-1: A map of Europe, which would show the
+     density of population by the intensity of shade, would be
+     darkest in the vicinity of the lines between Sicily and
+     Scotland, between Paris and Saxony, and grow lighter in
+     proportion to the distance from their point of intersection.
+     Italy is the country with the earliest highly developed
+     national economy of modern times, and England that which
+     possesses the most highly cultivated national economy; as
+     the Rhine is, from the standpoint of civilization, the most
+     important river in Europe. It is remarkable, in this
+     connection, how slowly population increased in all European
+     countries during the 18th century, and how rapidly after the
+     beginning of the 19th, and especially since 1825. According
+     to _Dieterici_ (Berliner Akademie, 16 Mai, 1850), the
+     population increased annually per geographical square mile:
+
+     ===========================================================
+          _In_            |_1700-1800._|_1800-1825._|_1824-1846._
+     ---------------------+------------+-----------+------------
+                          |     BY     |     BY     |    BY
+     France               |      4     |     16     |    32
+     Naples,              |     15     |     18     |    49
+     Piedmont,            |      6     |      8     |    50
+     Lombardy,            |     19     |     40     |    80
+     England and Wales,   |     16     |     42     |   136
+     Scotland,            |      3     |     16     |    34
+     Ireland,             |     17     |     80     |    77
+     Holland,             |     13     |     14     |    95
+     Belgium,             |     15     |     44     |   136
+     Prussia,             |      7     |     17     |    68
+     Hanover,             |      6     |     12     |    32
+     Württemberg,         |     17     |     12     |    56
+     Bohemia,             |     16     |     27     |    73
+     ===========================================================]
+
+     [Footnote 253-2: "The useful rearing of children the most
+     productive of all outlay." (_Roesler._)]
+
+     [Footnote 253-3: Compare _J. Harrington_ (ob. 1677),
+     Prerogative of a popular Government, I, ch. II; _Sir J.
+     Stewart_, Principles, I, ch. 18; _Malthus_, Principle of
+     Population, IV, ch. 1; _McCulloch_ very happily shows how
+     seldom those who can live comfortably without it are
+     extraordinarily active. The Malthusian law prevents this
+     ever becoming the condition of the majority. Precisely
+     during those years that man is most capable of labor, there
+     is a prospect of a great increase of outlay, in case one
+     does not remain single, which would inevitably degrade every
+     one, a few over-rich excepted, who had not taken care to
+     provide for a corresponding increase of income. Were it not
+     for this, human progress would become slower and slower, for
+     the reason that the _dura necessitas_ would be felt less and
+     less.]
+
+     [Footnote 253-4: According to _Purves_, Principles of
+     Population, 1818, 456, there were, in England (London not
+     included):
+
+     Column Head Key A: _In the seven most densely populated counties._
+                     B: _In the seven counties of average population.
+                     C: _In the five most sparsely populated counties.
+
+                                 |     A     |    B    |    C
+     ----------------------------+-----------+---------+---------
+     Inhabitants per             |           |         |
+        geographical sq. mile,   |  4,904    |  2,229  |  1,061
+     One man with £60 income     |           |         |
+       in every                  |34 inhab'ts|     37  |     77
+     One man with £200 income    |           |         |
+       in every                  |  193  "   |    199  |    472
+     Aggregate of all incomes    |           |         |
+       over £200 per square mile,| £25,118   | £12,676 | £2,441
+     ----------------------------+-----------+---------+---------
+
+     Compare _Rau_, Lehrbuch, II, § 13. Something analogous has
+     frequently been observed as to taxation capacity. Thus, for
+     instance, the Hessian provinces paid in direct taxation and
+     taxation on wines, liquors, etc.; and the density of the
+     population was in the ratio--
+
+          In Rhenish Hessen,   100  100.
+          In Starkenburg,       65   64.
+          In Upper Hessen,      64   59.
+
+     (_Rau_, Lehrbuch, III, § 280.) In many European countries,
+     the population has for a long period of time, and in a
+     comfortable way, increased most rapidly where it has been
+     densest. Thus, for instance, the kingdom of Saxony was, in
+     1837, the most densely populated of all the monarchical
+     states of Germany (6,076 inhabitants per square mile),
+     Hanover (2,416) and Mecklenburg-Schwerin (2,004) were among
+     the most sparsely peopled. And yet the annual increase of
+     population between 1837 and 1858 was greatest in Saxony
+     (1.36 per cent.) while Hanover (0.44) and
+     Mecklenburg-Schwerin (0.59) stood very low in this respect.
+     In very thinly populated countries, nature permits even the
+     civilized man to deteriorate: thus the French in Canada, the
+     Spaniard in the valley of the La Plata.]
+
+     [Footnote 253-5: This excellent expression seems to have
+     been first used by _Gerstner_, Grundlehren der
+     Staatsverwaltung, 1864, II, 1, 176 ff. It must indeed be
+     distinguished from a rapidly growing, but for the time
+     being, a sparsely settled country. A nation with an equal
+     population on a larger surface is, frequently in the
+     immediate present weaker than another in which the
+     population is more dense; but it has the advantage of a
+     greater possibility of growth in the future. Think of the
+     electorates of Saxe and of Brandenburg in the sixteenth
+     century. Just as _Thaer_, Landwirthschaftliche Gewerbelehre,
+     § 149, advises that a mere annuitant should, values being
+     the same, rather purchase a smaller fertile estate; a very
+     able husbandman the reverse.]
+
+     [Footnote 253-6: We need only call to mind such facts as for
+     instance that the United States wealth of coal is 22 times
+     as great as that of Great Britain. (_Rogers_, The Coal
+     Formation and a Description of the Coal Fields of North
+     America and Great Britain, 1858.) In addition to this, only
+     about 16 per cent. of the combustible material is really
+     used in the way furnaces are now generally filled, only 10
+     per cent. in foundry furnaces, and from 14 to 15 per cent.
+     in the transportation of passengers on railways. The Falls
+     of Niagara afford a water-power equal to 2/3 of all the
+     steam engines which existed, a short time since, in the
+     whole world. (_E. Hermann_, Principien der Wirthschaft,
+     1873, p. 49, 153, 243.) But that single families, houses,
+     branches of business, etc. may be over-peopled, and the
+     impoverishing disproportion between numbers and the means of
+     subsistence not be susceptible of immediate removal by the
+     unaided power of the crowded circle, cannot be questioned.]
+
+     [Footnote 253-7: _Aristotle_ had recognized the possibility
+     of over-population. (Polit., II, 4, 3, 7, 4; VII, 4, 5; VII,
+     14.) _Schmitthenner_, Staatswisensschaften, I, distinguishes
+     between relative and absolute over-population: the former is
+     remediable by intellectual and especially by political
+     development, while the latter borders on the extreme
+     physical and possible limits of the means of subsistence.
+     _W. Thornton_, Over-population and its Remedy, 1849, 9,
+     considers a country in English circumstances over-populated
+     when a man between twenty and seventy years of age is not in
+     a condition to support, by means of his wages, 1¼ persons
+     in need of assistance (children under 10, women over 60, and
+     men over 70 years of age).]
+
+     [Footnote 253-8: Thus, for instance, in war, one million of
+     peasants are infinitely more powerful, especially in case of
+     a protracted defensive war, than two millions of
+     proletarians. Alaric's saying: "thick-growing grass is most
+     easily mowed."]
+
+
+SECTION CCLIV.
+
+THE IDEAL OF POPULATION.
+
+Hence it was not an erroneous policy that most governments have sought
+to promote the increase of population in undeveloped nations. So far as
+the influence of the acts of government can reach, such a course must
+tend to the earlier maturity of a people's economy. Much more
+questionable are positive provisions by government intended to hinder
+the further increase of population in a country already supposed to be
+fully peopled; if for no other reason, because even the deepest, most
+varied and extensive knowledge can scarcely ever predict with certainty
+that no further extension of the field of food is possible under the
+spur of momentary over-population; and also because questions of
+population reach so far into the life and tenderest feelings of the
+individual that a government which has regard for the personal freedom
+of its subjects, instead of promoting or hindering marriage, emigration
+etc. by police regulations, cannot but limit itself to a statistical
+knowledge and legislative regulation of these relations.[254-1] [254-2]
+
+Whether the population of a country increase in a well-to-do or
+proletarian manner; whether, therefore, the state should rejoice or
+lament over such increase, may generally be inferred with some certainty
+from the other conditions of the country's economy, especially from the
+height of the rate of wages and from the consumption of the nation (§
+230). Thus, for instance, the population of England, between 1815 and
+1847, increased 47 per cent.; but during the same period the value of
+its exports increased 63 per cent.; the tonnage of its merchant marine,
+55 per cent.; the amount yielded by the tax on legacies, and therefore
+moveable property, by 93 per cent.; the value of immoveable property by
+78 per cent. Wherever in agriculture the ancient system of triennial
+rotation (_Dreifelder-system_ = _three-field system_) has been exchanged
+for the so-called English system, not only is a greater number of men
+supported, but, as a rule, each is more abundantly provided for.[254-3]
+The construction of new houses is an especially good symptom, because a
+habitation is a want which governs many others, and which, at the same
+time, may be much curtailed in case of need. Only, there should be no
+thoughtless building speculations, the existence or absence of which may
+readily be inferred from the ratio between the rent of houses and the
+rate of interest usual in the country. In England and Wales there was,
+in 1801, one house to every 5.7 inhabitants; in 1821, to every 5.8; in
+1841, to every 5.4; in 1861, to every 5.39; in 1871, to every
+5.35.[254-4]
+
+The taking of the census at regular intervals in accordance with the
+principles of modern science, and with the apparatus of modern art, is
+one of the chief means to enable us to form a correct judgment of the
+health of the national life and of the goodness of the state.[254-5]
+
+     [Footnote 254-1: Compare _R. Mohl_, Polizeiwissenschaft, I,
+     § 15.]
+
+     [Footnote 254-2: There may be observed a regular ebb and
+     flow in the opinions of theorizers on this subject. During
+     the latter, great enthusiasm is manifested over the increase
+     of population, which is considered an unqualified benefit;
+     later, over-population gives rise to uneasiness. Not many
+     had as much insight as Henry IV.: _la force et la richesse
+     des rois consistent dans le nombre et dans l'opulence des
+     sujets_. (Edict., in _Wolowski_ in the Mémoires de l'Acad.
+     des Sciences morales et politiques, 1855.) Thus, for
+     instance, _Luther_, in his sermons on the married state,
+     advises all young men to marry at 20, and all young women at
+     from 15 to 18 years of age. The person who fails to marry
+     because he cannot support a family has no real confidence in
+     God. God will not allow those who obey his command to want
+     the necessaries of life. Werke by _Irmischer_, XX, 77 ff. In
+     England, great dread of depopulation under the first two
+     Tudors: 4 Henry VII., c. 19; 3 Henry VIII., c. 8. _J.
+     Bodinus_, De Rep., VI, is charmed with the Lex Julia et
+     Papia Poppæa. Its repeal was immediately followed by the
+     greatest looseness of morals and by depopulation.
+
+     On the other hand, a great dread of over-population
+     prevailed among English political economists at the end of
+     the sixteenth and the beginning of the seventeenth century.
+     They recommended their colonial projects by saying that they
+     desired to avert this danger. Thus, for instance, _Raleigh_,
+     History of the World, I, ch. 4; _Bacon_, Sermones fid., 15,
+     33, and his essay, De Colonies in Hiberniam deducendis.
+     Compare _Roscher_, Zur Geschichte der englischen
+     Volkswirthschaftslehre, 24, 26, 31, 34, 42. Similarly, at
+     the end of the fifteenth century, in highly developed Italy,
+     which had become stationary. According to _F. Patricius_ (De
+     Inst. Republ., VI, 4; VII, 12): _incolarum multitudo
+     periculosa est in omni populo_. Since _Colbert's_ time, the
+     opposite opinion has become the prevailing one. The densest
+     population had been observed in the wealthiest and
+     relatively the most powerful countries, and people thought
+     they had here sufficient data for a wide generalization. The
+     thought of military conscription by degrees obtained weight
+     in this connection. Thus, _Saavedra Faxardo_, Idea Principis
+     christiano-politici (1649), Symb. 66; _De la Court_,
+     Aanwysing (1699), I, 9. _Sir W. Temple_, says that the
+     fundamental cause of all commerce and wealth lies in a dense
+     population, which compels men to the practice of industry
+     and frugality. (Works, I, 162 ff., 171, III, 2.) _Imperii
+     potentia ex civium numero astimanda est._ (_Spinoza_, Tract,
+     politicus, VII, 18.)
+
+     Thus _Petty_ says that 1,000 acres which can support 1,000
+     men are better than 10,000 which do the same thing. He would
+     give Scotland and Ireland up entirely, and have the
+     inhabitants settle in England. In this way all combination
+     for common purposes would be facilitated. (Several Essays,
+     107 seq., 147 ff.) Peter the Great is said to have
+     entertained a similar view: Œuvres de Frédéric le Grand,
+     II, 23. More moderate is _Child_, Discourse of Trade, 298,
+     and still more so in 368 ff.; _Locke_, Works, I, 73 ff.; II,
+     3, 6, 191. In Germany, _v. Seckendorff_ advises that great
+     establishments for children should be erected, in which
+     orphans and even the children of poor parents should be
+     brought up at the expense of the state, simply with the
+     object of increasing the number of healthy men. (Teutscher
+     Fürstenstaat, ed. 1678, 203, Add. 179.) _Becher_, Polit.
+     Discours, 21, would have murderers punished because they
+     detract from population, although he elsewhere in his
+     definition of a city, "a nourishing populous community," is
+     no blind enthusiast over-population. According to _v.
+     Horneck_; Oesterreich über Alles, 1684, 29 ff., the third
+     fundamental rule of public economy is the greatest possible
+     increase and employment of men. _Vera regni potestas in
+     hominem numero consistit; ubi enim sunt homines, ibi
+     substantiæ et vires._ (_Leibnitz_, ed., Dutens, IV, 2, 502.)
+     According to _Vauban_, Dîme royale, 150, Daire, no child can
+     be born of a subject by which the king is not a gainer.
+     Compare 46,145. Numbers of People the greatest riches.
+     (_Law_, Trade and Money, 209.) Similarly, Law's disciple
+     _Mélon_, Essai politique sur le Commerce, ch. I, 3. The
+     number of people is both means and motive to industry
+     (_Berkeley_, Works, II, 187) and hence the public are
+     interested in nothing so much as in the production of
+     competent citizens. (Querist, Nr., 206.) _Süssmilch_, Göttl.
+     Ordnung, I, Kap. 10; Œuvres de Frédéric M. IV, 4; VI, 82.
+
+     About the middle of the 18th century, we find a whole school
+     of political thinkers who decide every question from the
+     standpoint of the influence of the solution on the increase
+     of population. (Excellently refuted by _Schlözer,_
+     Anfangsgründe, II, 15 ff.) Thus especially _Tucker_,
+     Important Questions, IV, 11; V, 5; VII, 4; VIII, 5. Four
+     Tracts, 70. _Forbonnais_, Finances de France, I, 351, who
+     considered it one of the principal objects of a good
+     industrial policy to employ the greatest possible number of
+     men. _Necker_, Sur le Commerce et la Législation des Grains,
+     1776. _v. Sonnenfels_, Grundsätze der Polizei, Handlung und
+     Finanz (1765), in which the principle of population is
+     called the highest principle of all four sciences of the
+     state (I, § 25 ff.). These writers understand the "balance
+     of trade" in such a way, that a nation always operates most
+     advantageously which gives employment to the largest number
+     of men with its export articles, (_v. Sonnenfels_, II, § 210
+     ff., 354 ff.) _v. Justi_, Staatswissenschaft, I, 160 ff.,
+     says plainly that a country can never have too many men.
+     According to _Darjes_, Erste Gründe, 379, "even the increase
+     of beggars brings something into the treasury by means of
+     the excise tax which they pay." Compare, also, _J. J.
+     Rousseau_, Contrat Social, III, 9; _Galiani_, Della Moneta,
+     II, 4; _Verri_, Opuscoli, 325; _Filangieri_, Leggi Politiche
+     ed Economiche, II, 2; _Paley_, Moral and Political
+     Philosophy, III, ch. 11. On similar grounds, _A. Young_
+     laments that the increase of proletarians is greatly
+     hindered by the English poor laws. (In later writings it is
+     somewhat different: compare Travels in France, I, ch. 12.)
+     How deeply such ideas had penetrated public opinion is
+     apparent from the opening words of the Vicar of Wakefield,
+     as well as from the declaration of _Pitt_ in parliament in
+     1796, that a man who had enriched his country with a number
+     of children had a claim upon its assistance to educate them.
+     Much more correctly, _Voltaire_, Dict. Philosophique, art.
+     Population, sect. 2.
+
+     The reaction which attained its height in the Malthusians
+     proper, set in with the Physiocrates and _Steuart: Quesnay_,
+     Maximes générales, No. 26; _Mirabeau_, Phil. rurale, ch. 8,
+     and Ami des Hommes (1762), VIII, 84. Similarly, _J. J.
+     Reinhard_, who calls Baden over peopled "for its present
+     system of agriculture." (Vermischte Schriften, 1760, I, 1
+     ff.; II, Varr.) _Möser_ Patr. Phant., I, 33, 42; II, 1; IV,
+     15; V, 26. Also Minister _v. Stein_: Leben von Pertz, V, 72;
+     VI, 539, 887, 1184. Compare _supra_, § 242. Of certain
+     modern economists, it may be said that they deplore and
+     condemn the birth of every child for whose support there has
+     not been established a life long annuity in advance. A
+     remarkable but unsuccessful attempt is made by _Ch. Périn_,
+     De la Richesse dans les Sociétés Chrêtiennes, at the end of
+     the first volume, to reconcile the opposing views. Périn
+     reproaches the Malthusians, and especially _Dunoyer_ and _J.
+     S. Mill_, with the advocacy of _l'onanisme conjugal_, and
+     thus desiring to restore the old heathen situation. Only the
+     Church holds the proper mean between defect and excess,
+     inasmuch as it permits complete continency or the
+     procreation of children regardless of circumstances to its
+     members; while, on the other hand, it, by celibacy and by
+     the inculcation of industry, frugality, etc., guards against
+     over-population. (How well the Roman Church has succeeded in
+     this is best proved by the Roman Compagna!)
+
+     In Greece, too, in its first economic periods, especially at
+     the time that the first colonies were sent out, great fears
+     were expressed of over-population. _Hesiod_ weighs the
+     advantages and disadvantages of the married state against
+     one another with great thoroughness. (Theog., 600 ff.) In
+     the Cypria, even the Trojan war was explained by a divine
+     decree, emitted with the intention of removing
+     over-population.]
+
+     [Footnote 254-3: _A. Young_, Political Arithmetik, 160 ff.
+     In the United States, in ten years, the increase of wealth
+     to that of population, was as 61:33. (_Tucker_, Progress of
+     the United States, 202 ff.) As a good measure for the
+     well-being of the masses, _J. J. Neumann_ recommends the
+     relative number attending higher schools, also that of
+     shoemakers, tailors, etc., because the magnitude of the
+     consumption of wool, leather, etc., can scarcely be directly
+     ascertained. (_Hildebrand's_ Jahrbb., 1872, I, 283, 294.)]
+
+     [Footnote 254-4: Statist. Journ., 1861, 251. In Liverpool,
+     between 1831 and 1841, the population increased 40 per
+     cent., and the number of houses 24 per cent., on account of
+     the large immigration of Irish proletarians. (Edinb. Rev.
+     LXXX, 80.) According to _Fregier_, les Classes dangereuses,
+     the number of good buildings continually increased under
+     Louis Philippe, and that of the worst lodging houses
+     continually diminished. In Prussia, between 1819 and 1858,
+     the population increased 60.8 per cent., the number of
+     houses, 30.1 per cent.; but the insurance-value of the
+     houses seems to have increased in a still greater
+     proportion, (_v. Viebahn_, Zollverein's Statist., II, 291,
+     ff., 299.) According to _Horn_, Bevölk. Studien, I, 62, ff.,
+     there are to every 100 persons in France, 20 dwelling
+     houses; in Belgium, 19; in Great Britain, 18; in Holland,
+     16; in Austria, 14; in Prussia, 12. Too much should not be
+     inferred from this mere table, as, for instance, in English
+     cities, a house is, on an average, smaller than in the
+     Prussian. A French house has, on an average, only 5½
+     windows and doors; a Belgian house, on the other hand, 3½
+     rooms. And so, in villages, it is found that there are
+     uniformly fewer persons to a house than in cities,
+     especially large ones. In Belgium, for instance, the cities
+     have to every 100 inhabitants, 66 rooms, the country only
+     62. In the largest parishes of France (over 5,000
+     inhabitants), the number of doors and windows is on the
+     average almost six times as great as in the smallest (under
+     5,000 inhabitants); but only 4 times as many persons live in
+     them. (_Horn_, loc. cit. I, 76 ff.)]
+
+     [Footnote 254-5: It was very well remarked, even of the
+     Servian census: _ut omnia patrimonii, dignitatis, ætatis,
+     artium officiorumque discrimina in tabulas referrentur, ac
+     sic maxima civitas minimæ domus diligentia contineretur ...
+     ut ipsa se nosset respublica_. (_Florus_, I, 6, 8.)]
+
+
+SECTION CCLV.
+
+MEANS OF PROMOTING POPULATION.
+
+The following are the principal means which have been used to
+artificially promote the increase of population:
+
+A. Making marriage and the procreation of children obligatory by direct
+command. Among almost all medieval nations so strong is the family
+feeling, that it seems to men to be a sacred duty to keep their family
+from becoming extinct. Where a person is not in a condition physically
+to fulfill this duty, the law supplies a means of accomplishing it by
+juridical substitution[255-1] at least. Most national religions[255-2]
+operate in the same direction, as well as the influence of political
+law-givers, who fully share in the contempt for willful old bachelors
+and sterile women, which runs through the national feeling of all
+medieval times.[255-3] In addition to this, there are the positive
+rewards offered for large families of children.[255-4] Even Colbert, in
+1666, decreed that whoever married before his 20th year should be exempt
+from taxation until his 25th; that anyone who had 10 legitimate children
+living, not priests, should be exempt from taxation for all time;[255-5]
+that a nobleman having 10 children living should receive a pension of
+1,000 livres, and one having 12, 2,000 livres. Persons not belonging to
+the nobility were to receive one-half of this, and to be released from
+all municipal burthens.[255-6] Such premiums are, indeed, entirely
+superfluous. No nobleman would desire 12 children simply to obtain a
+pension of 2,000 livres! Colbert himself abandoned this system of
+premiums shortly before his death.[255-7] [255-8]
+
+In the case of morally degenerated nations, in which an aversion to the
+married state had gained ground, efforts have sometimes been made to
+work against it by means of new premiums. Thus, especially in Rome,
+since the times of Cæsar and Augustus, although with poor success. It
+little becomes one who is himself a great adulterer to preach the sixth
+commandment.[255-9]
+
+     [Footnote 255-1: In Sparta, impotent husbands were obliged
+     to allow another man to have access to their young wives.
+     (_Xenoph._, De Rep. Laced., I. _Plutarch_, Lycurg., 15.)
+     Compare _J. Grimm_, Weisthümer, III, 42. Great importance of
+     adoption in Roman law.]
+
+     [Footnote 255-2: Thus, the Indian laws of Menu, concerned
+     principally with the necessity of sacrifices to assure
+     parents an existence after death. Similarly, Zoroaster and
+     Mohammed. In the Bible the periods should be accurately
+     distinguished: I Moses, 2, 18; V Moses, 26, 5; Judges, 10,
+     4; 13, 14; Proverbs, 14, 28; 17, 6, and the Preacher, 4, 8
+     apparently agree; also I Corinth., 7, written under
+     essentially different circumstances but precisely on this
+     account not in contradiction with those passages of the Old
+     Testament.]
+
+     [Footnote 255-3: Genesis, 30, 23. In Sparta, willful
+     bachelorhood was almost infamous. (_Plutarch_, Lycurg., 15.)
+     In Athens, a person might be charged with _agamy_ as with a
+     crime. (_Pollux_, VIII, 40.) Concerning the ancient
+     censorial punishments inflicted on those who had no children
+     and the rewards of prolificacy, see _Valer. Max._, II, 9, 1;
+     _Livy_, XLV, 15; _Gellius_, I, 6: V, 19. Festus v. Uxorium.
+     Many German cities made marriage a qualification for the
+     holding of certain public offices, etc. In some places, the
+     public treasury was made the heir of bachelors, a custom not
+     abolished in Hanover until 1732. Compare _Ludewig_, on the
+     Hagestolziatu (1727), but also _Selchow_, Elem. Juris Germ.,
+     § 290. On the fines imposed on old bachelors in Spain,
+     during the middle ages, see _Gans_, Erbrecht, III, 401 seq.
+     Recently recommended very strongly by _Hermes_, Sophiens
+     Reise (3 aufl.), I, 660.]
+
+     [Footnote 255-4: Yearly rewards for _polytekny_ in Persia:
+     _Herodot._, I 136. In Sparta, a father with three children
+     was relieved of guard duty; and one with four, of all public
+     burthens. (_Aristot._, Polit., II, 6, 13. _Aclian_, V. H.,
+     VI, 6.) Between 1816 and 1823, 250 fathers received the
+     royal gift made to godchildren at their christening in the
+     district of Oppeln, for the seventh son. (_v. Zedlitz_,
+     Staatskräfte der preuss. Monarchie, I, 285.) The king of
+     Hannover paid annually about 900 thalers in such gifts.
+     _Lehzen_, Hannovers Staatshaushalt, II, 346.]
+
+     [Footnote 255-5: Children who had fallen in the service of
+     their country were considered as still living. Precisely
+     similar laws had existed in Spain from 1623 (_de Laet_,
+     Hispania Cap., 4); in Savoy from 1648 (_Keysslers_, Reise,
+     I, 209).]
+
+     [Footnote 255-6: Russian law which required the serf master
+     to emancipate his male serfs who were not married by their
+     20th year, and female serfs not married by their 18th. He
+     could not charge them with desertion in such case, even
+     where combined with theft. (_Karamsin_, Russ. Gesch., XI,
+     59.) An ancient Prussian law provides that the country
+     people shall marry at the age of 25. Corpus Const., March,
+     V, 3, 148, 274.]
+
+     [Footnote 255-7: Lettres, etc. de Colbert, _éd_. Clément,
+     II, 68, 120. _Voltaire_, Siècle de Louis XIV. ch. 29,
+     bitterly complains of this; and also _Berkeley_, Works, II,
+     187, and _Forbonnais_, Finances de France, I, 391. On the
+     other hand, _Ferguson_, Hist, of Civil Society, III, 4,
+     asks: what fuel can the statesman add to the fires of youth?
+     Similarly, _Franklin_, Observations, etc. It should not be
+     forgotten that the taxes necessary to supply the so-called
+     marriage-fund, intended to enable poor couples to marry at
+     the expense of the state, make marriage more difficult for
+     other couples. (_Krug_, Staats-Oek., 31.)]
+
+     [Footnote 255-8: Frederick the Great limited the mourning
+     time of widowers to 3 months and of widows to 9. His
+     abolition of ecclesiastical punishment for those who had
+     fallen, and his prohibition of censuring them under penalty
+     of fine, was based as much on his population policy as on
+     philanthropic grounds. (Preuss. Geschichte, Friedrich's M.,
+     II, 337.) Similarly in Sweden: _Schlözer_, V. W., V, 43. In
+     Iceland, after a great plague, even in the last century, it
+     was provided that it should be no disgrace to a young woman
+     to have as many as six illegitimate children. (_Zacchariä_,
+     Vierzig Bücher vom Staate, II, 112.) The marshal of Saxony
+     wished, in the interest of the recruiting of the army, that
+     marriages should be contracted only for a term of five
+     years. (Rêveries de Maurice, etc., 345.) The sterile women
+     of Egypt visit the Tantah, a place of pilgrimage and
+     fair-town, where, under the cloak of religion, they give
+     themselves up to unbridled and promiscuous intercourse.
+     (_Wachenhufen_, vom ägypt. armen Mann, II, 151 ff.)]
+
+     [Footnote 255-9: Even in the year 131 B. C., the censor
+     Metellus demanded that citizens should, for political
+     reasons be compelled to marry. (_Livy_, LIX, _Sueton._, Oct.
+     89.) _Aes uxorium_ for bachelors. (_Valer. Max._, II, 9, I.)
+     Cæsar distributed land by way of preference among those who
+     had three or more children. (_Sueton._, Cæs. 20.) Augustus'
+     celebrated Lex Julia et Papia Poppæa sought to urge even
+     widows to marry again in opposition to the moral public
+     conscience. (Partly augendo ærario: _Tacit._, Ann., III,
+     25.) _Dio Cass._, LVI, 1 ff. Trajan did more yet, inasmuch
+     as he gave great assistance to impoverished parents, even of
+     the highest classes, to enable them to educate their
+     children. _Sub te liberos tollere libet, expedit!_ (_Plin._,
+     Paneg., 26.) Of what little assistance all this really was,
+     _Tacitus_, Ann., III, 25, IV, 16, and _Plin._, Epist. IV,
+     15, bear witness. If, under the Cæsars, the damage done to
+     the childless in the case of inheritance was a frequent
+     motive of divorce (_Friedländer_, Sittengeschichte I, 389),
+     the L. Julia, in fact, operated in a direction contrary to
+     that in which it was intended to work.]
+
+
+SECTION CCLVI.
+
+IMMIGRATION.
+
+B. Calling for immigrants. This is a means all the more in favor,
+inasmuch as it provides the country not only with new-born children, but
+with mature men, who frequently, when they come from thickly peopled and
+highly civilized countries, promote the industries of the country of
+their adoption, and become the teachers of a higher civilization. I need
+only mention the inhabitants of the Low Countries, who in the twelfth
+century settled as agriculturists in Northern Germany,[256-1] and in the
+fourteenth and sixteenth centuries in England, as artisans; the German
+miners and inhabitants of cities, who, during the middle ages, colonized
+Hungary, Transylvania[256-2] and Poland,[256-3] and the French
+Huguenots, who fled to the Independent Protestant countries. Nearly all
+the remarkable Russian princes since Ivan III. have endeavored in this
+way to induce Germans to settle in Russia, and, for the same reason,
+Peter the Great refused to give up his Swedish prisoners of war.[256-4]
+The great Prussian rulers have cultivated the policy of immigration on
+an extensive scale, and thus maintained the original character of their
+parent provinces as the colonial land of the German people.[256-5] [256-6]
+
+Such immigrants have been generally accorded a release from taxation and
+from military duty for a number of years; a proper measure since the
+state thereby only surrendered an advantage temporarily which it
+otherwise would not have possessed at all. Where the land of the state
+receiving the immigrants was still almost valueless, it has frequently
+been made over in parcels to well-to-do colonists without
+consideration.[256-7] Assistance exceeding these limits is a very
+questionable boon. It should not be forgotten that the influx of men who
+bring no capital whatever with them, and who are not good workmen, is of
+no advantage. Nor are they always the best elements of a people who
+emigrate. They are very frequently men who, through their own fault, did
+not prosper at home, and who come to the new country, with all their old
+faults.[256-8] This is, of course not true of those who emigrate from
+their attachment to some great principle; for instance, it is not true
+of those who emigrate in search of freedom of conscience. These may
+become, provided they are in harmony with their new environment, a
+support and ornament to their adopted country.[256-9] But there is
+always danger that they may not be able to adapt themselves to their new
+economic relations, and that thus they may in consequence succumb to the
+pressure of circumstances.[256-10]
+
+Oriental despotisms have frequently endeavored to assure themselves the
+possession of newly conquered countries by transporting its most
+vigorous inhabitants in whole masses to a distant part of their old
+empire. Thus, the Jews were carried into Assyria and Babylon; the
+Eretrians into Persia; the inhabitants of Caffa by Mohammed II.; the
+Armenians by Abbas the Great. The Russians, too, undertook a similar
+transportation of people under the Ivans.[256-11]
+
+C. The prohibition of emigration, which, in the case of serfs, vassals
+and state-villeins, it seems natural enough, was very usual in periods
+of absolute monarchical power. Thus, for instance, Frederick William I.
+forbade the emigration of Prussian peasants under penalty of death.
+Whoever captured an emigrant received a reward of two hundred
+thalers.[256-12] The public opinion of modern times is very decidedly
+opposed to this compulsion, which would make the state a prison.[256-13]
+"A really excessive population would still find an exit to escape,
+namely, through the gates of death." (_J. B. Say._) The statesman, on
+the other hand, who opposes the withdrawal of political or
+ecclesiastical malcontents should take care, lest he act like the
+physician who prevents the discharge of diseased matter from the sick
+body, and causes it to take its seat in some vital organ.[256-14] Hence,
+even where emigration is considered detrimental to the country, no
+governmental condition should be attached to it, except that the person
+desiring to emigrate should give timely notice of his intention, and
+receive his passport only after it has been shown that he has discharged
+all his military duties, paid his taxes and his debts.[256-15] [256-16]
+
+The severe penalties imposed in Athens on emigration, after the defeat
+at Chæronea, when general discouragement threatened the state with total
+dissolution, belong to an entirely different mode of thought.[256-17]
+
+     [Footnote 256-1: _v. Wersebe_, Ueber die Niederlandischen
+     Kolonien in Deutschland, II, 1826.]
+
+     [Footnote 256-2: The immigration of the so-called Saxons
+     into Transylvania began between 1141 and 1161, in
+     consequence of the great inundations in the Netherlands.
+     Compare _Schlözer_, Kritische Sammlungen zur Gesch. der
+     Deutschen in Siebenb., 1795.]
+
+     [Footnote 256-3: In Poland, a multitude of German colonists
+     established themselves during the thirteenth century on the
+     domains of the crown and of the church. As a rule, they
+     obtained the land in consideration of moderate services and
+     rents, which, however, did not begin to run until after
+     eight years, nor until after thirty for uncleared land. In
+     addition to this, they were governed by the German law, and
+     their communal authorities were for the most part German.
+     (_Roepell_, Gesch. von Polen, I, 572 ff.)]
+
+     [Footnote 256-4: Later, the ambassador of Peter the Great
+     endeavored to attract into Russia the Swedes, whom the
+     Russian invasion had prevented from continuing the operation
+     of their mines, saw mills, etc. (_Schlosser_, Gesch. des 18
+     Jahrhund., I, 205.) Catherine's colonization, especially on
+     the Volga and in. Southern Russia, 1765 and 1783. About
+     1830, the number of the colonists was estimated at 130,000,
+     mostly Germans.]
+
+     [Footnote 256-5: It is estimated that Frederick William I.
+     spent 5,000,000 thalers in establishing colonists. Up to
+     1728, 20,000 new families were received into Prussia alone.
+     _Stenzel_, Preuss. Gesch. III, 412 ff. Frederick the Great
+     endeavored above all to retain in the country the strangers
+     who came there periodically. Thus, the harvesters of
+     Vogtland, in the neighborhood of Magdeburg, and the Vogtland
+     masons in the suburbs of the capital (1752). Compare _v.
+     Lamotte_ Abhandlungen, 1793, 160 ff. He is said to have
+     settled 42,600 families, mostly foreigners, in 539 villas
+     and hamlets. Besides, the population of Prussia, between
+     1823 and 1840, increased by 751,749 immigrants, without any
+     positive favors shown them (_Hoffmann_, Kleine Schriften, 5
+     ff.), and the greater part of these were not very poor.]
+
+     [Footnote 256-6: In antiquity, nothing so much contributed
+     to the rise of Athens and Rome as their reception of noble
+     refugees during its earlier periods.]
+
+     [Footnote 256-7: In Russia, the Emperor Alexander, in 1803,
+     promised the colonists a full release from taxation during
+     ten years, a reduction of taxation for ten more, and freedom
+     from civil and military service for all time; besides 60
+     _dessatines_ of land per family gratis, an advance of 300
+     rubles for housebuilding, etc. and money to enable them to
+     maintain themselves until their first harvest. The provision
+     relating to Poland (1833) was much less favorable:
+     importation of movable property free of duty, freedom from
+     military duty and from taxation for six years, and perpetual
+     quit rents (_Erbzinsgüter_) to agriculturists who owned a
+     certain amount of capital. Brazil promised immigrants, in
+     1820, land and ten years' freedom from taxation. Compare
+     _Jahn_, Beiträge, z. Einwanderung und Kolonisation in Br.
+     (1874), 37 ff. Hungary, in 1723, accorded settlers freedom
+     from taxation for six years and artisans for fifteen years.
+     (_Mailath_, Oesterreichische Gesch., IV, 525.) The ordinance
+     of 1858 affords too little security for non-Catholics and is
+     not adapted to farmers, but only to purchasers.]
+
+     [Footnote 256-8: Many of Frederick the Great's colonists
+     turned out very badly. They were attracted only by the
+     premiums offered, and they became dissolute after they had
+     consumed them. Many of them thought that they were to be of
+     use only by giving children to the state (_Meissner_, Leben
+     des Herrn v. Brenkenhof, 1782), and that the land donated
+     them was to be cultivated by others at the expense of the
+     state! _Dohm_ mentions villages of colonists which had to a
+     great extent changed hands four times in 20 years. Whether
+     the king would not have better attained his object had he
+     employed the younger sons of Prussian peasants as colonists,
+     _quære_. (_Dohm_, Denkwürdigkeiten, IV, 390 ff.) Even
+     _Süssmilch_ says: "A native subject is, in most cases and
+     for most purposes, better than two colonists." (Göttl.
+     Ordnung, I, 14, 275.) Compare the work: Wie dem Bauernstande
+     Freiheit und Eigenthum verschafft werden könne, 1769, 16.
+     Every family of colonists in South and new East Prussia is
+     said to have cost the state 1,500 thalers. (_Weber_,
+     Lehrbuch der polit. Oekonomie, 1806, II, 172); but according
+     to _Büsching_ (Beiträge z. Regierungsgeschichte Friedrichs,
+     II, 239), only 400 thalers. _J. Möser_ is strongly opposed
+     to the encouragement of immigration by direct appeals to it.
+     (P. Ph., I, 60.) According to _Bülau_,
+     Staatswirthschaftslehre, 24, only those immigrants are
+     welcome who are attracted to the country by the whole
+     character of its national institutions and circumstances. It
+     is a different matter when, for instance, the government in
+     New South Wales permits the colonists, by the payment of
+     very moderate contributions, to have their workmen, friends
+     and relations come after them from England in ships owned by
+     the government. Between 1832 and 1858, £1,700,000 were paid
+     out for such transportation. (Novara-Reise, III, 53.)]
+
+     [Footnote 256-9: Dutch Remonstrants since 1619 in Schleswig;
+     Huguenots established since 1685, in Prussia, to the number
+     of about 11,000; Waldenses in Prussia since 1686; natives of
+     Salzburg and of the Palatinate in Prussia. For a state which
+     is the representative of a religious or political principle,
+     it may be a matter of honor, and then certainly useful, to
+     afford an asylum to persons, adherents of that principle.]
+
+     [Footnote 256-10: On the German colonists whom Olavides
+     settled in Spain, in 1768 etc., see _Schlözer's_
+     Briefwechsel, 1779, IV, 587 ff. See adv.: Ueber Sitten,
+     Temperament etc., Spaniens von einem reisenden Beobachter in
+     den J., 1777 und 1778, Leipzig, 1781, p. 260, ff.]
+
+     [Footnote 256-11: Canale Crimea, III, 346 ff. _Karamsin_,
+     Russ. Geschichte, VIII, 97, 424.]
+
+     [Footnote 256-12: Ordinance of 1721. Compare _Wolf's_
+     Vernünftige Gedanken, § 483, who at that time highly
+     disapproved of such compulsion. Quite the reverse, the
+     Prussian Landrecht, II, Tit. 17, § 133 ff. On the other
+     hand, in Spires, in 1765 and 1784, persons of good conduct,
+     good workmen and others of sufficient means, were forbidden
+     to emigrate. Prohibition under pain of death, in Spanish
+     Milan; Novæ Constitut., 29, 145. The work: Les Intérêts de
+     la France maletendus (1752), 258, advocates the prohibition
+     of emigration as a species of _les majesté_.]
+
+     [Footnote 256-13: _Beccaria_, Dei Delitti e delle Pene,
+     1765, cap. 52. Similarly, _Mirabeau_, in his congratulatory
+     letter to Fred. Wil. II., and _Benjamin Franklin_, On a
+     proposed Act for preventing Emigration: Works, IV, 458 ff.
+     The Dutch were very early advocates of freedom of
+     emigration. Compare _U. Huber_, De Jure Civit., 1672, II, 4;
+     _Pufendorff_, Jus. Natur. (1672), VIII, 11. Theorizers
+     otherwise the most opposite in their views are here agreed.
+     _Jeremy Bentham_ says that properly speaking a prohibition
+     against emigration should begin with the words: We, who do
+     not understand the art of making our subjects happy; in
+     consideration that if we should allow them to take flight,
+     they would all betake themselves to strange and better
+     governed countries, etc. Des Récompenses et des Peines, II,
+     310. But also _K. L. v. Haller_, Restauration der
+     Staatswissenschaft, I, 429 ff., 508, demands most
+     strenuously that there should be freedom of emigration, for
+     the reason that every man, without prejudice to any one
+     else, might seek the state constitution which he wanted, _J.
+     Tucker_ entirely approved the English law prohibiting the
+     emigration of workmen. Compare also _J. Bodin_, De Republ.,
+     I, 6.]
+
+     [Footnote 256-14: English prohibition of emigration under
+     Charles I., 1637. _Rymer_, Fœdera XX, 143. The story that
+     Cromwell and Hampden were thus detained in the country may
+     be false, however. (_Bancroft_, History of the United
+     States, I, 445.) Earlier prohibition of emigration of the
+     Norwegian king in relation to Iceland. (_Schlegel_, Grâgas,
+     Comment Crit. p. XV.) In ancient Greece, the restriction of
+     emigration by foreign powers contributed very largely to the
+     democratization of the mother country. Something similar is
+     impending over Germany if the present emigration towards
+     North America should be much weakened by a change of
+     circumstances there.]
+
+     [Footnote 256-15: Many governments require proof that the
+     person emigrating will be admitted into his contemplated new
+     home, and that he has the means to cover the expenses of the
+     journey. The threat of not receiving back returning
+     emigrants has very little effect, for the reason that it is
+     the most thoughtless who at the moment of emigration
+     entertain the most rose-colored hopes.]
+
+     [Footnote 256-16: I shall treat of the so-called after-tax
+     (_Nachsteuer_) in the fourth volume of my System.]
+
+     [Footnote 256-17: Compare _Lycurg_., adv., Leocrat. _Cæsar_
+     forbade all persons of senatorial rank to emigrate out of
+     Italy; other persons between 20 and 40 years of age were not
+     to remain absent over three consecutive years at most. For
+     the same reason, the time of military service was shortened.
+     (_Mommsen_, R. G., III, 491.)]
+
+
+SECTION CCLVII.
+
+SANITARY POLICE.
+
+D. Hygienic measures and the improvement of the sanitary police of a
+country are of the utmost importance, not only to increase the number of
+inhabitants, but also to produce the conditions of population described
+in § 246.[257-1]
+
+E. It is the indispensable condition precedent of all the measures which
+we have examined, if they would attain their end, that the means of
+subsistence of the people should be increased or at least more equally
+divided among them. Where this has been done the increase of population
+will, as a rule, take care of itself; where it has not, the artificially
+increased procreation of children can only produce new victims for the
+angel of death. A merely more equable distribution can, however, improve
+the condition of the people only in exceedingly rare cases. (§ 204). As
+a rule, the diseases which it is attempted to thus cure grow worse, or
+they at least increase in extent. (§ 80, ff., 250.) It is quite
+different, of course, when the more equable distribution coincides with
+an absolute growth of the nation's economy. We shall see, later, that,
+for instance, the freedom of land alienation and of industrial pursuits,
+when not accompanied by an important advance in the corresponding
+branches of economy may do more harm than good; but that under favorable
+circumstances a multitude of dormant forces are thereby awakened, and
+that then the national-economical dividend may be increased much more
+than the divisor. (§ 239. _Roscher_, Nationalökonomik des Ackerbaues, §
+99, 139 ff.)
+
+     [Footnote 257-1: _Bacon_ in his History of Life and Death,
+     or of the Prolongation of Life, hopes the better physicians
+     "will not employ their times wholly in the sordidness of
+     cures, neither be honoured for necessities only; but that
+     they will become coadjutors and instruments of the divine
+     omnipotence and clemence in prolonging and renewing the life
+     of man."]
+
+
+SECTION CCLVIII.
+
+MEANS OF LIMITING THE INCREASE OF POPULATION.
+
+A. The means which consists in rendering marriage less easy by
+legislation is surrounded with peculiar difficulties in densely
+populated countries, which are always highly civilized. The state would
+have here to swim against the stream, and it would be generally a much
+less difficult task to enlarge the field of food. If there remained from
+a former period any inducements held out to promote marriage, it is self
+evident that they should now be discontinued. A voluntary bachelor must
+now no longer be considered as a man who permits one more woman to
+become an old maid, but as one who facilitates marriage to another
+couple.[258-1] On the other hand, it should not be forgotten that, for
+men, generally, marriage is not only an occasion of increased outlay,
+but also an incentive to increased activity and greater economy.[258-2]
+Many states have endeavored to condition the founding of a family by
+requiring evidence that the father has a prospect of being able to
+support one.[258-3] Distinguished theorizers accede to this condition,
+inasmuch as they deny the right of over-population.[258-4] But,
+unfortunately, it is impossible, except in a few extreme cases, to
+assert or deny a prospect of being able to support a family.[258-5] How
+easily is the most remunerative power of labor destroyed by physical or
+mental disease. Scarcely less subject to change is the so-called certain
+opportunity of acquisition afforded by a profession or a trade, when it
+is not guarantied by the possession of considerable capital or of landed
+property, or by some legal privilege. The amount of property required by
+many laws is so small that it alone would suffice to support the family
+only for a few years.[258-6] And yet it has been generally provided that
+the proof of such a property gave one an unconditional right to
+establish a domicile and to marry. It is only where this is wanting that
+special consent is required. But who shall exercise this right of
+consent? The parish, perhaps, because on it the impoverished family
+would fall as a burthen. But it is to be feared that the course of
+procedure here would be too severe. Local narrow-heartedness might
+refuse the right of domicile to skillful and industrious candidates, who
+are in the best situation to maintain a family, but whose competition
+the older members of the parish might dread.[258-7] Hence, in most
+countries, the parish is treated as a party, on whose protest against
+the marriage the state itself decides[258-8] If the state authorities
+were to give the immediate decisions in such cases, we might expect, in
+ordinary times, a liberality which would frustrate the object of the
+law; but sometimes, also, considerable chicanery on grounds of so-called
+higher police.
+
+Where there still exist classes and corporations with real independence,
+the members of which still attach a real value to the body, the matter
+takes care of itself. The journeyman, for instance, voluntarily retards
+his marriage until he has become a master workman, and once he has
+attained that degree, he "works the golden mine of his trade."[258-9]
+But wherever a numerous proletariat exists, the individuals of which
+have no better future to expect, whatever their present sacrifices and
+self-denial, and who know nothing of class-wants or class-honor,
+prohibitions of marriage are severely felt, and are far from being well
+enforced.[258-10] The rule which excites least opposition is the fixing
+of a normal age for marriage, under which males should not be allowed to
+undertake its engagements.[258-11] Of all privileges those attaching to
+age are viewed with least aversion. Something similar is effected in
+most countries to-day by military conscription, which, on this account,
+in young countries, has a very restrictive effect on the increase of
+population.[258-12] The best means against thoughtless marriages
+certainly consists in increasing the measure of individual wants (§
+163); assuming, of course, that the added wants are proper and
+worthy.[258-13] There is always the consideration that all limitation of
+marriage, even voluntary self-limitation, by decreasing or postponing
+marriage, may prove disastrous to morals. It should, however, not be
+forgotten that there are other sins besides impurity, and that complete
+poverty constitutes one of the worst of temptations. Especially is it
+not the angel guardian of chastity.[258-14]
+
+In England[258-15] and France, all governmental hinderances to marriage
+have long since ceased, and in Prussia, at least all general police
+hinderances; and we can by no means say that the consequences have been
+evil. On the other hand, no favorable results as to their influence on
+pauperism can be shown statistically from the restrictive laws of
+Württemberg. Rather do statistics point here to the unfavorable probable
+result of an increase of illegitimate births.[258-16] According to the
+law of the North German Confederation of 1868, the contract of marriage,
+except in the case of soldiers, officials, clergymen and teachers, is so
+free, so far as police influence is concerned, that even actual poverty
+is no impediment.[258-17] [258-18] [258-19]
+
+     [Footnote 258-1: In Ireland, the unsalaried condition of the
+     Catholic clergy who depended entirely on marriage fees (as
+     high as £20 being paid by poor farmers. Quart. Rev. No.
+     289), baptismal fees, burial fees, etc., operated as an
+     artificial stimulus to the increase of population under the
+     most unfavorable conditions. See § 254.]
+
+     [Footnote 258-2: It is very noteworthy in this connection
+     that married people commit relatively fewer crimes than
+     single persons. Thus, for instance, in Prussia, in 1861, of
+     every 1,000 unmarried men over 16 years of age, 1.18 were
+     sent to the house of correction; of every 1,000 married men,
+     only 0.59; of every 1,000 divorced, 13.71! (Preuss. Statist.
+     Zeitschr., 1864, 318 seq.) In Austria, 1858-59, there was one
+     person under sentence in every 203 unmarried persons, in
+     every 669 married, and in every 1,053 widows and widowers.
+     Of the married, there was a larger proportion of criminals
+     among the childless than among those with children (49.8 per
+     cent. against 42.6 per cent.). Compare _v. Oettingen_,
+     Moralstatistik, 759. This evidence is all the stronger
+     since, circumstances being otherwise the same, fathers of
+     families are harder pressed by cares for food than single
+     persons.]
+
+     [Footnote 258-3: In Würtemberg, the authorities were for the
+     first time enjoined in 1633, to dissuade people from
+     untimely marriages; in 1712 the consent of the authorities
+     to a marriage was made dependent on the evidence of a
+     religious education and the capacity to support a family.
+     Between 1807 and 1828, all restrictions on marriage because
+     of incapacity to support a family were removed. According to
+     the Bavarian Penal Code of 1751 (I, 11, § 7), persons who
+     had married without governmental authorization, and who
+     could not afterwards support themselves except by begging,
+     were sentenced to at least one year in the workhouse and to
+     be whipped once a week. Only a short time ago scarcely any
+     one in Bavaria had a real and unquestionable right to marry.
+     (_Braun_, Zwangscölibat für Mittellose in _Faucher's_
+     Vierteljahrsschrift, 1867, IV, 8.) Austrian law relating to
+     the proof of the certainty of maintaining one's self by
+     one's trade etc: 12 Jan., 1815; 4 Sept., 1825.]
+
+     [Footnote 258-4: _R. Mohl_, in the 3d edition of his
+     Polizeiwissenschaft, I, 152 ff., requires proof of the
+     possession of a sufficiency of food, at least of the means
+     to begin house-keeping. According to _Marlo_, Weltökonomie,
+     III, 84 ff., and _Schäffle_, Kapitalismus und Socialismus,
+     689 ff., the compulsory insurance of widow and children
+     should precede marriage.]
+
+     [Footnote 258-5: Thus the Württemberg law of 1833 prohibits
+     the marriage of those who are under prosecution on account
+     of repeated thefts, fraud, or carrying on the trade of a
+     beggar; also all such as have been criminally punished
+     within the two next preceding years, and all who within the
+     three next preceding years have received alms from the
+     public treasury, except in cases of misfortune, of the
+     causes of which they were innocent. The Bavarian law of
+     April 16, 1868, gives the parish a right of veto. According
+     to the royal Saxon ordinance of 1840, male recipients of
+     alms are permitted to marry only when their marriage makes
+     an important amelioration of their circumstances probable,
+     and does away with the necessity of public assistance in the
+     future.]
+
+     [Footnote 258-6: During Iceland's middle age, prohibition of
+     marriage for all who did not possess at least from 100
+     ounces of silver or 600 ells _vadhmal_. (_K. Maurer_,
+     Island, 443 seq.) In Bavaria (July 1, 1831), the right of
+     domicile is made to depend on a landownership free of debt,
+     and a _steuersimplum_ of from 1 to 2 florins (in towns more)
+     in country parishes; on the real (reales) right of carrying
+     on a trade, or on a personal trade-concession sufficient for
+     support. A tax of 1 florin in 1852 meant about 1,200 florins
+     worth of property. In other cases it depended on whether the
+     parish recognized the existence "complete and permanent of
+     the means of livelihood." Here good repute and the
+     possession of a considerable savings bank deposit were to be
+     particularly considered. In cases of competition, discharged
+     soldiers who had served out their term, and good servants of
+     15 years service were to be preferred. In Württemberg (1833)
+     a sufficient guaranty that a person contemplating marriage
+     possessed the means of support was: the personal capacity to
+     exercise a liberal art or to follow a scientific career, to
+     engage in commerce or agriculture, or some branch of
+     industry, or follow a trade, with sufficient income
+     therefrom to support a family; or the possession of a
+     property, according to locality, of 1,000, 800 or 600
+     florins. The law of May 5, 1852, was more exacting, and
+     required, besides personal competency, evidence that one's
+     calling yielded a sufficient income, as well as of an amount
+     of property free of debt, of the value of from 150 to 200
+     florins. In Baden (1831) a property considered sufficient to
+     insure the means of livelihood amounted in the four largest
+     cities to 1,000 florins, in 10 smaller ones to 600; in the
+     remaining communities to 300 florins. In the electorate of
+     Hesse, the amount (1834) was from 150 thalers (for small
+     country communities) to 1,000 thalers. (Kassel.) An
+     irreproachable character is required by many laws (in
+     Württemburg, since 1832, the good reputation of both
+     parties), and the community is empowered to dispense with
+     the other material conditions. Long-continued savings-bank
+     deposit speaks well for the parties' competency to support a
+     family, because it bears testimony to an excellent economic
+     disposition.]
+
+     [Footnote 258-7: Remarkable instance in _Rau_, Lehrbuch, II,
+     § 15 a., note b.]
+
+     [Footnote 258-8: In Bavaria, in 1808, the decision reserved
+     to the royal boards of police.]
+
+     [Footnote 258-9: Those callings in which a certain _esprit
+     de corps_ prevails such as that, for instance, of officials
+     and officers, submit willingly to restrictions on marriage
+     authoritatively imposed. The Catholic clergy submit even to
+     a full prohibition of marriage. Such measures uniformly
+     strengthen the isolation of the class from the nation as a
+     whole. It is well known that, during the middle ages,
+     theological views on the meritoriousness of all self-denial
+     made voluntary celibacy very common. The Franciscan order
+     counted at one time 150,000 monks and 28,000 nuns, the
+     so-called members of the third order, or penitents, not
+     included. (_Helyot_, Gesch. der Kloster und Ritterorden, V,
+     33.) The severity of the laws relating to fasting might
+     also, according to _Villermé_, be regarded as a "preventive
+     check." Compare _supra_, § 240, note I.]
+
+     [Footnote 258-10: The Prussian law authorizing parents and
+     guardians to put an interdict on marriages, because of a
+     want of the necessary means, of vicious habits, disease,
+     etc., may constitute a check in very good families and
+     families of the middle class, but scarcely so in proletarian
+     circles.]
+
+     [Footnote 258-11: Besides Württemberg, Baden also prescribed
+     25 years; in Saxony and Hessen-Darmstadt, 21 sufficed; in
+     Prussia even 18. _Schäffle_ advocates a minimum age of 25
+     years for males and 22 years for women (loc. cit.).
+     Similarly, _Mohl_, loc. cit.]
+
+     [Footnote 258-12: Why, hitherto, in Sweden, by way of
+     exception, military service promoted early marriage, see
+     _Wappäus_, Bevölkerungsstatistik, II, 357. In France, on the
+     other hand, the increase of population since 1815 has been
+     almost exactly in the inverse ratio of the strength of the
+     military levy. Acad. des Sc. Morales et Polit., 1867, II,
+     159.]
+
+     [Footnote 258-13: _Malthus_, Principle of Population, 10,
+     ch. 13.]
+
+     [Footnote 258-14: _Malthus_, Principle of Population, IV,
+     ch. 4, 5. It is a great error to suppose that the number of
+     immoral acts increases and decreases with the frequency of
+     temptation. In Ireland, farmers very frequently keep their
+     men servants and maid servants even after the latter have
+     married. But the very facility with which a fall is
+     legalized, increases very largely the number of reckless
+     marriages. (_Meidinger_, Reise, II, 187 seq.) In the country
+     about Göttingen also, where the people marry much earlier on
+     an average than in that about Calenberg, illegitimate births
+     are much more frequent.]
+
+     [Footnote 258-15: Even no other legal obstacle which could
+     make marriage more difficult occurred to _Malthus_, except
+     that which consists in the refusal of public assistance
+     after the expiration of a fixed period of time. (Principle
+     of Population, IV, ch. 8; V, ch. 2.)]
+
+     [Footnote 258-16: See the tables in the Tübinger
+     Zeitschrift, 1868, 624 ff. Thus, formerly, in Rhenish
+     Bavaria, where there was complete liberty allowed in this
+     matter, the poor rates compared with the population, were
+     only 34.6 per cent. of the average in the rest of Bavaria;
+     and the number of illegitimate births was not so unfavorable
+     by one-half. (_Rivet_, in the Archiv der polit. Oekonomie, N.
+     F., I, 39.) The Bavarian law of the 16th of April, 1868,
+     which provides that the community or parish can object to a
+     person's marriage only on account of unpaid parish taxes or
+     poor rates (art. 36) largely increased the number of
+     marriages and diminished the illegitimate births; in the
+     first year to 22.2 per cent., in the second to 17, and in
+     1873 to 13.2 per cent. (Allg. luth Kirchenztg., 12 März,
+     1875.) According to official statement, this law did more to
+     improve the condition of workmen in the towns than any other
+     cause. Compare _Thudichum_, Ueber unzulässige Beschränkungen
+     des Rechts der Verehelichung, 1868. Per contra, _E.
+     Schübler_, Ueber Niederlassung und Verehelichung in den
+     verschiedenen deutschen Staaten, 1855.]
+
+     [Footnote 258-17: _Reinhold_ has recommended the direct
+     limitation of the procreation of children by the process of
+     _infibulation_ practiced on boys fourteen years of age and
+     continued until they arrive at a marriageable age or are
+     able to support illegitimate children. An der Uebervolkerung
+     in Mitteleuropa, 1827. Ueber die Population und Industrié,
+     oder Beweis dass die Bevölkerung in hoch kultivieren Landern
+     stets den Gewerbfleiss übereile, 1828. Ueber das menschliche
+     Elend, welches durch Missbrauch der Zeugung herbeigeführt
+     wird, 1828. Das Gleichgewicht der Bevölkerung als Grundlage
+     der Wohlfahrt, 1829. The ancients proceeded sometimes in a
+     similar way in the case of slave actors: _Juvenal_, VI, 73.
+     Compare _Winckelmann_, Antichi inediti, Tav. 188.]
+
+     [Footnote 258-18: The obstacles formerly placed in many
+     countries in the way of the marriage of Jews of allowing
+     only the first-born to marry, and this only when a vacancy
+     occurred in the number of families by death (Austria), was
+     not based on a solicitude about population, but on
+     religio-national intolerance, in part also on commercial
+     police grounds.]
+
+     [Footnote 258-19: _Fisher_, Gesch. des deutschen Handels
+     (1785 ff.), still considers war as a remedy for
+     over-population, but _M. Wirth_, Grundzüge der N. Oek.,
+     rightly remarks that war destroys not so much children,
+     women and the infirm as the most productive of the male
+     population, and immense amounts of capital.]
+
+
+SECTION CCLIX.
+
+EFFECTS OF EMIGRATION.
+
+B. It is sufficiently evident that emigration from an over-populated
+country[259-1] may be attended with good consequences, especially when
+it takes place in organized bodies.[259-2] There is little danger that
+one who knows how to work and pray will go to the bad in a young
+agricultural colony. In a wilderness which has not yet been cleared, the
+greater number of proletarian vices spontaneously disappear. There is
+here no opportunity for jealousy or theft; little for intemperance, the
+gaming table, licentiousness or quarrelsomeness. Here labor is a
+necessity, and the rewards of industry and saving soon take a palpable
+shape. As the emigrant, in such a situation, can scarcely help marrying,
+children far from being a burthen, soon become companions to their
+parents in their solitude and, later, helpmates in business. The
+colonist belonging to the lower middle class is most certain of
+improving his condition. It may, indeed, require many and toilsome years
+before he can feel comfortable himself; but his children who would
+probably have led a proletarian life in the mother country may calculate
+with certainty on future well-being. The father's small capital which
+the outlay for education alone would have exhausted at home, here
+becomes the seed of a number of prosperous households.[259-3] It is
+otherwise with the mass of the people who remain at home. (Compare §
+241.)[259-4] It is a matter of much more difficulty than is generally
+supposed by those who have not made a study of the matter, that the
+yearly emigration from countries like Germany should counterbalance the
+excess of births over deaths.[259-5] It is not to be supposed that men
+who are really useless at home should be of any service in the colonies.
+How violently have not English colonies opposed the advent of settlers
+from the poorhouses of the mother country. The classes which are
+readiest to emigrate: idlers, fickle characters, fathers of families
+with altogether too many children, artisans who by a revolution in
+industry have lost the means of making a livelihood, are precisely those
+who find it most difficult to obtain employment on the other side of the
+water.[259-6] Most colonies refuse to receive persons over forty years
+of age at their own expense. But a young man intellectually and
+physically able to work, can always make his way even in the old world;
+only the weaker succumb under the pressure of over-population. Lastly,
+it should be considered what an amount of capital is required for
+purposes of emigration and settlement. If emigrants, on the average,
+take more capital with them than is estimated to be the _per capita_
+amount of capital possessed by those remaining at home,[259-7] the
+consequence would be that, as a result of this very successful
+emigration, the ratio of consumers to the amount of capital in the
+country would become more and more unfavorable. The emigrating portion
+of the country might experience the advantage of this, but the great
+mass of the population remaining at home would become poorer in capital
+and in vigorous men,[259-8] and richer in the comparatively needy. The
+comfortless contrast between colossal wealth and beggarly want could
+only be thereby increased, since it is almost exclusively the lower
+middle class who emigrate to agricultural colonies. The over-rich, as a
+rule, will not, and proletarians can not, go thither.[259-9] [259-10]
+
+     [Footnote 259-1: Compare _R. Mohl_, in the Tübinger
+     Zeitschrift für Staatswissenschaft, 1847, 320 ff.;
+     _Roscher_, Nationalökonomische Ansichten über die Deutsche
+     Auswanderung in the Deutschen Viertejahrsschrift, 1848, No.
+     43, 96 ff., the same author's Kolonien, Kolonialpolitik und
+     Auswanderung, 2 Aufl., 1856, 342 ff.; _J. Fröbel_, Die
+     Deutsche Auswanderung und ihre Kulturhistorische Bedeutung,
+     1858.]
+
+     [Footnote 259-2: Unfortunately, emigration in groups has
+     recently become very rare, whereas, during the middle ages,
+     it took place preponderantly, first in armies and then in
+     communities.]
+
+     [Footnote 259-3: According to parliamentary investigations,
+     the Irish laborer in Australia, Canada, etc., improves in a
+     few years to such an extent that he can scarcely be
+     distinguished from the Anglo-Saxon. He becomes industrious,
+     self-reliant etc. (Edinb. Rev., 1950, 25.) In North America,
+     however, the Irish seldom become really well off, or occupy
+     a position of consequence in society. (_Görtz_, Reise, 88.)]
+
+     [Footnote 259-4: _E. G. Wakefield_, in other respects so
+     intelligent a writer on the theory of colonization, is of
+     opinion that every nation might, by giving a proper
+     direction to emigration, establish such a density of
+     population as it desired. Thus, for instance, if there were
+     10,000 marriages contracted every year in a country, and it
+     was provided that each of these 10,000 couples should be
+     sent to some colony immediately after marriage, the whole
+     mother country would become extinct in from 60 to 70 years.
+     This extreme is of course not desired by any one; but the
+     way to be followed in order to attain a desirable limit is
+     hereby pointed out. That emigration has in so few instances
+     checked the advance of population, Wakefield accounts for by
+     the fact that the means furnished to emigration have to a
+     certain extent been wasted, and that old men, children,
+     etc., who either had no influence on population as yet, or
+     could have no more in future, constituted a large proportion
+     of those who left the country. (England and America.)
+
+     Evidently an important consideration is here omitted, viz.:
+     that there is no such a thing as a normal year of marriages,
+     etc. If, for instance, all males were to wait until their
+     30th year, and all females until their 20th, to enter the
+     married state, and that the government were to send all
+     competent persons as soon as they had reached this age to
+     America, what would be the consequence? Numberless
+     situations affording the means of supporting a family would
+     be vacant, and a number of young men of 29 and of young
+     women of 19 would be induced to marry, etc. The number of
+     children to a marriage in England in 1838-44 was 4.13;
+     1845-49, 3.96; 1850-54, 3.26; 1855-59, 4.15. (Journal des.
+     Econ., Oct., 1861.)]
+
+     [Footnote 259-5: _Benjamin Franklin_, in 1751, estimated the
+     aggregate number of English inhabitants in the North
+     American colonies at 1,000,000, of whom only 80,000 had
+     immigrated into the country. Hence, from 1790 to 1840, the
+     United States, the promised land of European emigrants,
+     received only about 1,500,000 emigrants. From 1820 to 1859,
+     the number (according to _Bromwell_ and _Hübner_) was
+     4,509,612; according to a report of the New York Chamber of
+     Commerce (1874), 9,054,132 since 1824. An annual immigration
+     of 100,000 was reached for the first time in 1842. According
+     to the census of 1870, there were in the United States
+     5,567,229 persons born in foreign countries, of which number
+     1,690,410 were born in Germany, 1,855,827 in Ireland, and
+     5,550,904 in England. The aggregate emigration from the
+     British empire, which unquestionably possesses most colonies
+     and the largest marine, was, on an average, between 1825 and
+     1835, only about 55,000; 1836 to 1845, over 80,000; in 1845
+     alone, over 93,000, while the yearly excess of births over
+     deaths between 1841 and 1848, according to _Porter_, was in
+     England and Wales alone, on an average, 169,000. During the
+     succeeding years emigration received an extraordinary
+     stimulus (which changed the proportion) in the influence of
+     the discovery of the Californian and Australian mines, and
+     in the Irish famine. Hence the emigration was, at least,
+
+          ================================
+               _in_          | _Persons._
+          -------------------+------------
+           1847,             |  258,000
+           1848,             |  248,000
+           1849,             |  299,000
+           1850,             |  280,000
+           1852, (maxim.)    |  368,000
+           1853,             |  329,000
+           1855,             |  176,000
+           1857,             |  212,000
+           1858-60, (average)|   96,000
+           1862,             |  121,000
+           1863,             |  223,000
+           1865,             |  181,000
+           1867,             |  105,161
+           1870,             |  202,511
+           1871,             |  174,930
+          ================================
+
+     while the excess of births over deaths (in Great Britain
+     alone) amounted, in 1856, to 309,000. Between 1815 and 1870,
+     there emigrated from the United Kingdom to the United
+     States, 4,472,672 persons; to the British North American
+     Colonies, 1,391,771; to Australia, 988,423; to other points,
+     160,771; an aggregate of 7,013,637. (Statist. Journal, 1872,
+     115.) On the other hand, between 1861 and 1871, 543,015
+     persons either returned or immigrated to the United Kingdom.
+     It is estimated, (according to _Hübner's_ Jahrb. der
+     Volkswirthschaft und Statistik, 263 ff.; VIII, 222, and the
+     Rudolst. Auswandererzeitung) that in no year before 1844
+     were there more than 33,000 emigrants from Germany. On the
+     other hand, in
+
+         ====================================
+              _in_          |  _At least._
+         -------------------+-----------++---
+          1844,             |         43,000
+          1845,             |         67,000
+          1846,-            |         94,000
+          1847,             |        109,000
+          1848,-            |         81,000
+          1849,             |         89,000
+          1850,-            |         82,000
+          1851,             |        112,000
+          1852,             |        162,000
+          1853,             |        156,000
+          1854, (maxim.)    |        250,000
+          1855.             |         81,000
+          1856.             |         98,000
+          1857,             |        115,000
+          1858-61, (average)|          4,620
+          1866,             |        137,000
+          1867,             |        151,000
+                            |
+          By Hamburg and    |
+            Bremen alone--  |
+          1867-71, (average)|33,355 & 48,296
+          1872,             |57,621 & 66,919
+          1873,             |51,432 & 48,608
+          1874,             |24,093 & 17,913
+         ====================================
+
+     while the natural increase of population in Prussia alone
+     (1843-55) amounted to almost 150,000 per annum; in the
+     kingdom of Saxony (1834-49), to over 18,000; in
+     Austro-Germany and the five German kingdoms together,
+     305,000. (_Wappäus_, Bevölkerungsstatistik, I, 133.) In New
+     York alone, in 1852, 118,600 Germans arrived; in 1853,
+     119,500; in 1854, over 178,000. That, at present, emigration
+     is, on the whole, so much more frequent than formerly, is
+     accounted for by the largely improved means of
+     communication. However, it was estimated a century ago, that
+     Europe sent at least 100,000 persons per annum to the East
+     and West Indies. Between 1700 and 1719, an aggregate of
+     105,972 persons emigrated to the Dutch East Indies; between
+     1747 and 1766, 162,598. (_Saalfeld_, Gesch. des Holländ.
+     Ostindiens, II, 189.) It should not be ignored, however,
+     that the readiness to forsake the fatherland, which only a
+     short time ago was so usual in Germany (in England, it
+     prevails chiefly among the Irish), justified the greatest
+     solicitude for the roots of German national life. How little
+     Germany really suffers from over-population, is shown
+     especially by the circumstance that, for instance, in
+     Prussia, it is precisely the most densely populated
+     districts to which immigration is largest. Compare _v.
+     Viebahn_, Zollverein. Statist, II, 242.
+
+     According to _C. Negri_, about 40,000 Italians emigrate
+     every year at present; and it is said that there are, in
+     Turkey, Egypt and Tunis, 70,000; in Peru, 14,000, and in
+     Buenos Ayres, 84,000 Italians living. (I, Jahresbericht der
+     Hamburg, geogr. Gesellsch., 1874.) In other Romanic and
+     Slavic countries emigration is as yet insignificant. On the
+     other hand, there were, in 1870, 214,574 native
+     Scandinavians in the United States.]
+
+     [Footnote 259-6: While the most active demand for labor, for
+     instance, existed in Australia generally, three government
+     ships carrying emigrants arrived: one with English
+     agricultural laborers, the second with former factory hands,
+     the third with Irish. The agricultural laborers found places
+     very rapidly a few days after their arrival; the factory
+     hands did only tolerably well, while of the poor Irish not
+     one-half could find anything to do, and became a burthen on
+     the benevolence of the public. (_Merivale_, Lectures on
+     Colonization and Colonies, II, 30 ff.)]
+
+     [Footnote 259-7: It is estimated that the first 21,200
+     settlers of New England brought about $1,000,000 with them.
+     (_Bancroft_, Hist. of the United States.) The 50,000
+     emigrants who came to Quebec in 1832 were estimated to be
+     worth $3,000,000. It is thought that German emigrants to
+     America, bring with them, on an average, 280 thalers, to
+     which must be added 40 thalers passage money. This seems
+     very high, while German estimates are generally too low,
+     because no emigrant has any interest to overestimate his
+     property, but frequently to underestimate it. Thus, for
+     instance, in 1848-49, 8,780 persons emigrated from Prussia
+     with 1,713,370 thalers of property, i. e., 195 thalers each.
+     (Amtl. Tabellen, f., 1849, I, 290.) It is said that between
+     1844 and 1851, 45,300 persons emigrated from Bavaria with
+     governmental consent, and that they carried with them
+     property to the amount of 19,233,000 florins; that is, 424
+     florins each. (Beiträge zur Statistik des Kgr. Bayern, III,
+     322 seq.) Here the average amount of means carried away by
+     emigrants seems to decrease; a sign that the mass of those
+     emigrating come from successively lower strata of the
+     population. (_Hermann_, Bewegung der Bevölk., 26 seq.)
+
+     A still smaller amount of capital would suffice for the
+     purpose of emigration itself. Persons who settled in Canada
+     (1823) cost the English nation £22 per capita, which amount
+     provided them with cows, seeds, agricultural implements,
+     help in building, and food for twelve months. According to
+     the Edinburg Rev., Dec., 1826, only £15, 4s. were necessary
+     for the same purpose. If it be borne in mind that many of
+     these settlers afterwards caused five times as many
+     relatives to come over at their own expense, the necessary
+     outlay per capita would seem very small indeed; frequently
+     not more than one year's maintenance in the poorhouse would
+     have cost. Almost £1,000,000 are sent every year from the
+     United States through banks and emigration bureaus, by
+     emigrants, to the United Kingdom, to bring over their
+     relatives. (Statist. Journal, 1872, 386.)]
+
+     [Footnote 259-8: It is said that in Mecklenburg agricultural
+     labor has much deteriorated because the strong men emigrate
+     and because the old and children remain at home.
+     (_Bassewitz-Schumacher_, Comm. Bericht über die Verhältnisse
+     der ländl. Arbeiterklassen, 1873.)]
+
+     [Footnote 259-9: _J. S. Mill_, indeed, thinks that even
+     where there is a larger emigration of capital than of men,
+     the combined pressure which both exert on the natural forces
+     of the country emigrated from must become less. (Principles,
+     IV, ch. 5, 1.) Compare _Hermann_, loc. cit. 28 ff. _Hermann_
+     also shows very clearly how emigrants to America would
+     frequently like to return; but the expense of returning
+     deters them from the undertaking, and they manage to get
+     along by great effort, which, however, would have afforded
+     them a livelihood if they had remained at home. Staatsw.
+     Unters. II, Aufl. 480.]
+
+     [Footnote 259-10: Against real over-population, the
+     emigration of women would be much more effective than that
+     of men; and yet the emigration of the latter occurs much
+     less frequently in large numbers. Thus, between 1853 and
+     1858, 3,694 males emigrated from Saxony and only 2,609
+     females. Between 1866 and 1874, there were 1,754,231 male
+     immigrants to the United States, and only 1,147,446 females.
+     According to _Rümelin_ (Allg. Ztg., December, 1865), the
+     large emigration from Württemberg produced by the years of
+     scarcity--1850 ff.--left such a preponderance of women that
+     1/6 of all the young women who have reached a marriageable
+     age at present, would remain unmarried, even if all the
+     marriageable young men were to engage in matrimony. Thus
+     negative emigration does very little to cure the social
+     disease of involuntary celibacy.]
+
+
+SECTION CCLX.
+
+COLONIST EMIGRATION.
+
+All these dangers disappear when the portion of the nation which has
+emigrated continues economically connected with the body of the nation
+remaining at home. (Colonizing emigration.) Here emigration not only
+provides "elbow room" in the mother country, but there arises at the
+same time an increased demand for manufactured articles, an increased
+supply of raw material, by means of which an absolute growth of
+population is made possible.[260-1] England has hitherto enjoyed these
+advantages to the fullest extent, Germany scarcely at all. German
+emigrants to Russia, America, Australia, or Algiers, were, together with
+all they have and are, for the most part lost to their fatherland. They
+become the customers and suppliers of foreign countries, and frequently
+enough the competitors and even enemies of Germany.[260-2] [260-3]
+
+It might be very different if the stream of German emigration was
+directed towards German colonies for instance, as happened in later
+medieval times, towards the fertile but thinly populated parts of
+Hungary, towards the provinces of Austria and Prussia; perhaps, as List
+wished, towards those parts of Turkey which, God willing, shall yet
+constitute the inheritance of the German people. Thus, through the
+instrumentality of emigration, might a new Germany arise, which would
+directly or indirectly and necessarily ally itself to the old,
+politically, and at the same time constitute the surest bulwark against
+the danger from Slavic power.
+
+Politico-economically, this country might be utilized by Germany as the
+United States uses the Mississippi valley and the Far West, especially
+as concerns the exclusiveness of the use. It is true, that emigrants
+could be invited to these quarters in good conscience only when the soil
+had been prepared for them. They should find there, on their arrival,
+complete legal security, especially for the landed property to be
+acquired by them; likewise, at least, full personal, religious, and also
+commercial freedom.[260-4]
+
+It may be asked, whether there are places in the other quarters of the
+world adapted to German colonization in the higher sense of the word.
+These should of course be countries adapted to agriculture as practiced
+by the Germans,[260-5] with an easily accessible coast and provided in
+the interior with navigable streams. Here the Germans should be able not
+only to live together in large numbers, but the rest of the population
+should be inferior to them in political training and in national
+feeling. Otherwise, there would in time be danger of their losing the
+German character and feeling.[260-6] The difficulty of establishing
+German colonies in the southern temperate parts of Chili and Brazil
+would be aggravated by the very same causes which prevented the creation
+of a German navy for centuries; and they would almost certainly have to
+calculate on the jealousy of all other colonial powers and of the United
+States.[260-7] We should not forget that from Raleigh's time to the
+present, almost every speculation having for its object the founding of
+a colony, whether originating with individual capitalists or with
+joint-stock companies, has been, considered from a mercantile point of
+view, a failure. The fruits of new colonization are generally reaped in
+the succeeding generation; and such delay is scarcely in harmony with
+the ideas of our own times. Almost every settlement has had its critical
+period when the settlers almost despaired. This produced less harm in
+the 17th century; for they were for the most part compelled to
+persevere. In our day, they would probably disband and go in search of
+an easier life in colonies already existing. And yet, Germany must make
+haste if it would not soon see the last appropriate locality occupied by
+other and more resolute nations.[260-8] [260-9]
+
+     [Footnote 260-1: As _Torrens_ shows there is no kind of
+     trade that so much promotes production, or which is so
+     capable of growth as the exchange of the means of
+     subsistence and raw materials against manufactured articles.
+     The Budget: On Commercial and Colonial Policy, 1841 ff.]
+
+     [Footnote 260-2: Care should be taken not to allow one's
+     self to be misled here by relative numbers. In the United
+     States, the amount of imports was, from--
+
+     ===========================================================
+                 |_The British_|  _France._  | _Germany without_
+                 |  _Empire._  |             |   _Austria._
+     ------------+-------------+-------------+------------------
+     1840-41,    | $51,000,000 | $24,000,000 |    $2,450,000
+     1849-50,    |  85,000,000 |  27,600,000 |     8,780,000
+     1859-60,    | 138,600,000 |  43,200,000 |    18,500,000
+     ===========================================================
+
+     Hence, absolutely, the German exports increased in 19 years
+     only about $16,000,000; the French (without any emigration),
+     over $19,000,000; the English, more than five times the
+     German. Of the 30,633 emigrants who sailed from Bremen in
+     1874, only 72 did not go to the United States. (D. Ausw.
+     Ztg., 5 Jul., 1875.) The total exports of the United Kingdom
+     to its colonies amounted, 1840-44, to an average value of
+     £7,833,000; 1865-69, to £27,146,000; while those to foreign
+     countries amounted, during the same periods of time, to only
+     from £28,871,000 to £93,558,000. English colonial trade
+     amounted, in 1866, to £6 2s. per capita of the colonial
+     population; the trade with the East Indies, to only 9s. 7d.
+     per capita of the East Indian population. (Statist. Journal,
+     1872, 123 ff.)]
+
+     [Footnote 260-3: There has hitherto been little to rejoice
+     over in the condition of German emigrants. The greater
+     number of them had received so little education that they
+     were by no means in a way to oppose the weapons of attack of
+     Anglo-Americans. The glorious literature of their old home
+     scarcely existed for them. Almost the only national
+     peculiarity which they held to with any tenacity was the
+     disposition to a want of union among themselves. Hence they
+     were necessarily de-Germanized in a few generations, after a
+     toilsome and quarrelsome period of transition. How seldom,
+     even in Ohio, did German names occur in the list of public
+     officials, while in New York the number of German names on
+     the poor list is very considerable. The situation, however,
+     seems to have improved in modern times, and the national
+     coherency and political power of the mother country have
+     gone hand in hand with the revival of attachment on the part
+     of the emigrants to the land of their nativity. How
+     beautifully was this attachment manifested during the
+     Franco-Prussian war in 1870-71!]
+
+     [Footnote 260-4: Compare _Fr. List_, in the D.
+     Vierteljahrsschrift, 1842, No. IV. _Dieterici_, über Aus-
+     und Einwanderungen, 1847, 18.]
+
+     [Footnote 260-5: No Mosquito-coast!]
+
+     [Footnote 260-6: How tenaciously have the Germans held to
+     their nationality in Transylvania and the Baltic provinces,
+     and how rapidly they lost it in Pennsylvania!]
+
+     [Footnote 260-7: On emigration to Brazil, see _v. Tschudi's_
+     report of Oct. 6 to the Swiss parliament, 1860.]
+
+     [Footnote 260-8: Think only of the project of the Belgian
+     East Indian Company, which Austria could not carry out at
+     the beginning of the preceding century. Proposition by
+     _Fröbel_ (loc. cit., 87 ff.) that England and Prussia should
+     together found a German colony in the valley of the La
+     Plata, to which _Wappäus_ rightly objects, that there are
+     few places there in which peasant emigrants would like to
+     acquire land. (Mittel- und Südamerika, 1866, 1027.)]
+
+     [Footnote 260-9: Compare _Wappäus_, Deutsche Auswanderung
+     und Kolonisation, 1846.]
+
+
+SECTION CCLXI.
+
+STATE AID TO EMIGRANTS.
+
+The inquiry, What can the state reasonably do for emigration, must, of
+course, receive a very different answer according as there is question
+of merely negative (§ 259) or colonizing emigration (§ 262). To give the
+latter a proper impulse requires so great an outlay of capital and labor
+that it can be made only by the state; and in Germany, on a large scale,
+only by a union of several states. We must not here deceive ourselves.
+Emigrants will go uniformly where they have the nearest prospect of a
+comfortable future. Whether in emigrating they shall continue their
+connection with their old home, or whether their children shall be
+completely denationalized is a matter with which very few emigrants
+concern themselves; and considering the amount of education they
+generally possess, this need excite no surprise. Hence, if Germany would
+unite its departing children in a colony permanently German, and
+therefore new,[261-1] it would be necessary for it to offer them, at its
+own expense, at least the same advantages which they would find in older
+and fully established colonies. He who would reap should not endeavor to
+evade the sacrifice incident to the sowing.[261-2] Even great sacrifices
+in this direction would certainly be richly rewarded if properly made.
+Probably the outlay would never be directly returned to the national
+treasury; but there is all the more reason, on this account, that there
+should be an indirect return by the increase of duties and other
+indirect taxes.
+
+On the other hand, the costly assistance of the state in the case of
+merely negative emigration would, as a rule, be folly. Who would compel
+the children of the great national family, who necessarily or
+voluntarily remain faithful to the paternal roof, to pay tribute to
+those who turn their backs on the old home for ever? The wealthy
+especially who remain in the country have to put up with the
+disadvantage of paying higher wages for labor.
+
+Simple humanity requires that the state should not be blind to the
+movement of emigration, nor abandon it to all the risks of improvident
+liberty. Hence it should endeavor to remove the ignorance prevailing on
+questions of emigration. It should require personal and other guaranties
+that emigration agents are not simply dealers in men, and that the
+contracts made with ship-owners by emigrants are really performed. It
+should exercise a strict superintendence over the mode of transportation
+of emigrants, and see to it that its consuls accredited to America, etc.
+assist them by word and deed.[261-3] The legislation of Bremen is a
+model in this respect, and has contributed largely to make that port a
+principal outlet for German emigration.[261-4] The provisions of the
+laws of October 1, 1832, of July 14, 1854, of July 9, 1866, etc.,
+embrace among others the following: Only a citizen of Bremen, of good
+repute, and who has given security to the amount of five thousand
+thalers, shall be entitled to receive and contract with emigrants for
+passage; to each passenger shall be allotted a space of at least twelve
+square feet of surface and six feet high; provision shall be made for
+the longest possible time of passage; for instance, for thirteen weeks
+for a voyage northerly from the equator. At the same time, the
+ship-owner is required to give security that in case of accident to the
+vessel, disabling it in such a way as to unfit it to continue the
+journey, he shall return the fare of all passengers saved, and pay them
+an additional sum of from twenty to forty thalers, according to the
+length of the passage, to cover the cost of salvage, to support
+themselves for the time being, and enable them to continue their
+journey. The entire matter is controlled by a rigid system of
+ship-investigation, and is under the superintendence of a board of
+officers, made up of senators and members of the chamber of
+commerce.[261-5] Among English provisions[261-6] particularly worthy of
+imitation is that which requires the government agents in Canada, etc.
+to furnish information gratis to emigrants. But to keep their clients
+from the practice of idling about, so ruinous to themselves, the agents
+refuse aid to all emigrants who, without sufficient reason, remain over
+eight days in the harbor.
+
+     [Footnote 261-1: Much might be gained if German emigrants to
+     the United States would concentrate themselves in one state,
+     and thus soon make it a German state. For many reasons
+     Wisconsin is best adapted to such a purpose.]
+
+     [Footnote 261-2: Provision made to put the colonists in
+     possession of lands well explored and surveyed, to have the
+     preliminary labor performed by persons already
+     acclimated--labor which is the most injurious to health, the
+     clearing of the land, the construction of
+     buildings--purchasing the agricultural implements at
+     wholesale, etc.]
+
+     [Footnote 261-3: _v. Gessler_ (Tübinger Zeitschr., 1862, 398
+     ff.), recommends the establishment of an "asylum" in the
+     neighborhood of the locality where the emigrants are likely
+     to settle. In this asylum they might, during the time
+     immediately following their arrival, find shelter, food,
+     medicines, etc., and all the implements necessary to a
+     settler, at cost. The institution might be established
+     either by the home government, by a humanitarian emigration
+     society, or by a land company in the colony itself.]
+
+     [Footnote 261-4: There passed
+
+     ================================================================
+                             |   _In 1854._      |     _In 1867._
+     ------------------------+-------------------|-------------------
+     Through Bremen,         | 76,875 emigrants. |  73,971 emigrants.
+     Through Hamburg,        | 50,819      "     |  42,845     "
+     (Of these directly only | 32,310)     "     | (38,170)    "
+     Through Havre,          | 95,849      "     |  22,753     "
+     Through Antwerp,        | 25,843      "     |  12,086     "
+     Through other ports,    |  2,500      "     |
+     ================================================================
+
+     The trade of Bremen has, as the result of this
+     transportation of emigrants, grown just as that of the
+     Italian sea coast cities by the transportation of the
+     crusaders in the Middle Ages. Here, as in so many other
+     cases, genuine philanthropy, in the long run, moves nearly
+     parallel with real economic advantage. And in fact, the
+     Statuta civitatis Messiliæ of 1228 (IV, 24 seq., 28, 30)
+     contain provisions in relation to the crusaders which
+     forcibly remind one of the modern Bremen laws. Similarly in
+     Venice: Compare _Depping_, Histoire du Commerce entre le
+     Levant et l'Europe, 284; II, 313 seq.]
+
+     [Footnote 261-5: Similar provisions in Hamburg, June 3,
+     1850, revised February 26, 1855; in France, January 15,
+     1855; in the United States of America, March 2, 1855.
+     Compare _Hübner_, Statistisches Jahrbuch, 1856, 289 ff.
+     However, there were serious complaints, a short time since,
+     concerning German emigrant transportation, especially of the
+     treatment of women: Novara-Reise, III, 49 ff. Ausland, 1863,
+     No. 8. One of the principal wants is that emigration agents
+     should be held responsible for detaining their clients a
+     long time and at a heavy expense, in places of embarkation.]
+
+     [Footnote 261-6: Compare _McCulloch_, Commercial Dictionary,
+     v. Colonies, 9 George, IV., ch. 21. The law of June 30,
+     1852, carries solicitude for the lot of emigrants very far.
+     It embraces 91 articles and 11 additions. Everything is most
+     minutely provided for, even the form of the passage ticket.
+     The old law of 1803, drawn up in accordance with the advice
+     of the Scotch Highland Society, was apparently devised in
+     the interest of the emigrants; but it contained a multitude
+     of minute requirements suggested by a desire on the part of
+     the advisers to restrict emigration. Hence it was, in
+     practice, by consent of both parties, always evaded. Compare
+     _Lord Selkirk_, Observations on the present State of the
+     Highlands of Scotland, with a View of the Causes and
+     probable Consequences of Emigration (1805). Edinburgh R.,
+     December, 1826, 61; January, 1828.]
+
+
+SECTION CCLXII.
+
+EMIGRATION AND PAUPERISM.
+
+As a very rare exception, an emigration suddenly undertaken, well
+directed and on a very large scale, may be made to constitute the
+efficient means preparatory to the abolition of pauperism. Where, for
+instance, by reason of the subdivision of the land into extremely small
+parcels, farming on a diminutive scale has come to preponderate; where
+the popular home-industries have been reduced to a miserable condition
+by the immoderate competition of great foreign manufacturers and
+machinery, the hopelessness of the situation consists principally in
+this: that every improvement made must be preceded by a concentration of
+the forces of labor, and their combination with the powers of capital;
+which for the moment renders a great number of those who have been
+laborers hitherto entirely superfluous. That is, to raise the level of
+the whole public economy and provide a decent livelihood for 10,000 men,
+it would be necessary to condemn another 10,000 to death from
+starvation! Most political doctors recoil at the thought of this
+transition-crisis. They content themselves with palliatives which, in
+the end, cost much and afford no help. The simplest remedy here would
+evidently be to cause those workmen who have become superfluous to
+emigrate at the expense of the state. Next, the necessary economic
+reforms should be carried out at home and the return of the evil
+prevented by rigid legislation. The more sudden this emigration is, the
+nearer it comes to taking place, so to speak, all at once, the less
+possible it is that the increase of population should keep even pace
+with it. The condition of the proletarians who remained at home could
+not fail to have a favorable influence in this respect; for nothing
+leads men so much into contracting reckless marriages as the total
+absence of any prospect of amelioration of their condition in the
+future.[262-1] [262-2]
+
+     [Footnote 262-1: Many of the most competent thinkers have
+     designated such emigration as the only remedy for the
+     over-population of Ireland. Compare _Torrens_, The Budget,
+     passim; _J. S. Mill_, Principles, II, ch. 10; Edinburg Rev.,
+     January, 1850. _Lord Palmerston_ retained the wealthiest
+     farmers on his estates who were intending to emigrate, by
+     causing the poor ones to emigrate at his own expense. The
+     independent emigration of the Irish at their own expense
+     which has been going on for some years, might become an
+     incalculable gain to the English nation. By the poor law, 4
+     and 5 William IV., c. 76, the English parishes are
+     authorized, with the approval of the central poor board, to
+     assist emigration to the extent of £10 per capita. Between
+     1849 and 1853, they assisted 1,826 poor persons on an
+     average per annum, who received for that purpose £10,352.
+     (_Kries_, Engl. Armenpflege, 1863, 30.)]
+
+     [Footnote 262-2: It is an interesting thought of _R. von
+     Mokl_, Polizeiwissenschaft, I, 130, that real
+     over-population, when no one was willing to emigrate of his
+     own accord, might be remedied by a species of
+     emigration-conscription of young adults by the drawing of
+     lots, the right of substitution, etc. The ancient Italians
+     sometimes realized this idea by the _ver sacrum_. Similarly
+     in many cases of Greek emigration, by the worship of Apollo:
+     Compare _W. H. Roscher_, Apollon und Mars (1873), 82 ff.]
+
+
+SECTION CCLXII (_a_).
+
+TEMPORARY EMIGRATION.
+
+Besides definitive emigration, temporary emigration deserves special
+consideration. If the wages of labor are much lower in one locality than
+in another which is easily accessible,[262a-1] the workmen of the former
+place resolve much more readily on periodical migrations thither than on
+permanent settlements in the place. It is especially the difficult work
+of harvesting, where farmers are pressed for time,[262a-2] and that of
+house-building,[262a-3] which are undertaken by these birds of passage;
+and mountainous regions, with their limited agriculture, their late
+crops and their longing look into the far-off which is found united with
+a deep-rooted attachment to home, are the places whence they
+come.[262a-4] When their home is distinguished in certain branches of
+labor, they are wont to carry these with them abroad, and in such case
+their sojourn away from home is generally longer.[262a-5] The shorter
+and the more vagabond-like their migration, the less apt is it to be an
+economic blessing to the wanderers themselves.[262a-6] There must
+necessarily result, as a consequence, a species of equalization between
+the rates of wages in the country receiving and the country furnishing
+them.[262a-7] This may be a great national misfortune for the latter,
+inasmuch as its working class may thus be forced to a lower standard of
+life, and all their providence and self-control in the founding of a
+family be made fruitless by the arrival of less capable
+foreigners.[262a-8] The hatred existing among the members of a higher
+class for parvenus from a lower corresponds in this respect to the
+mutual hatred of two countries for the natives of the other, (_v.
+Mangoldt_.) Considered from the point of view of the country furnishing
+these migratory classes, temporary emigration has this advantage over
+definitive emigration, that the persons leaving the country always
+maintain their economic connection with their home.[262a-9] The most
+striking example of this is afforded by those merchants, ship-owners,
+etc. who are, so to speak, pioneers in foreign markets for Switzerland
+and Bremen. Only there is always danger of a crisis when the usual flow
+is suddenly checked.[262a-10]
+
+     [Footnote 262a-1: The locust-like emigration from Ireland to
+     England takes three principal directions: from Dublin to
+     Liverpool, from Cork to Bristol, from the North-East to
+     Scotland. This even before 1835. (_Berkeley_, Querist, Nr.,
+     526 ff.) Great increase since the fare has been reduced on
+     the steamers to from 4 to 6 pence. (Edinburg Rev., XLV, 54
+     ff.; XLVII, 236 ff.)]
+
+     [Footnote 262a-2: Thus mowers emigrate from Württemberg and
+     the Odenwald into the valley of the Rhine; inhabitants of
+     the Alps into the South German plains, and the inhabitants
+     of the sandy and healthy localities into the Hanoverian
+     marshes and Holland; inhabitants of the Brabant into France.
+     Many go from Waesland, 5 and 6 miles distant from Holland,
+     to sow a field manured and plowed by the owner with flax,
+     and afterwards to weed and harvest it, etc., and at their
+     own expense. (_Schwerz_, Belg. Landwirthschaft, II, 105.)
+     Even in the sixteenth century, 20,000 Frenchmen went every
+     year to Spain in harvest time. (_Boden_, Responsio ad
+     Paradoxa, 49.) Migration of the East-goers (_Ostgeher_) from
+     Wartebruch as far as Poland and Russia (_Frühling_, N.
+     Landwirthsch., Ztg., 1870, 451 ff.) Galicians go into the
+     Polish plains, and Poles into the Prussian low country (_v.
+     Haxthausen_, Ländl. Verfassung, I, 99); Russians from the
+     populous district of Oreland Poltawa etc. into the Southern
+     steppes (_Kohl_, Reise, II, 118), and also out of Northern
+     woody districts to Jaroslay, where they give themselves to
+     the cultivation of the fields (_v. Haxthausen_, Studien, V,
+     198); Gallegos into the Portuguese wine region; inhabitants
+     of the Abruzzi into the Roman Campagna (_Galiani_, Della
+     Moneta, V, 4); Calabrians to Naples. In Tuscany, almost the
+     entire cultivation of the unhealthy plains is done by the
+     inhabitants of the mountains. Even in Africa migrations by
+     the _fulahs_ into the plains before them (_Ritter_,
+     Erdkunde, I, 349); of the inhabitants of the cataracts of
+     the Nile into Lower Egypt, where they remain from six to
+     eight years, and where they are in great favor because of
+     their honesty as gate-keepers and pack-carriers.
+     (_Burckhardt_, Travels, 147.)]
+
+     [Footnote 262a-3: In Paris, a great many masons and
+     carpenters from Lothringen and Limousin, who return after
+     from 6 to 7 months. The number of these migratory building
+     workmen is estimated at over 40,000. (_Wolowski._) Thus
+     thousands of brick makers migrate from Vicentini and Friaul
+     into Austria and Hungary; from the vicinity of lakes Como
+     and Lugan, masons have been spread over all Italy, and this,
+     it is said, has been going on a thousand years, (_v.
+     Rumohr_, Reise in die Lombardei, 135 ff.) Yearly migration
+     of about 3,000 brick finishers from Lippe-Detmold, which is
+     very opportunely directed by the government. (_F. G.
+     Schulze_, Nat. Oek., 606.)]
+
+     [Footnote 262a-4: In the Apennines, almost every valley has
+     its own migration-district. Thus the Modeneses go to
+     Corsica, and the Parmesanes to England. The migration from
+     the German Tyrol amounts yearly to between 16,000 and 17,000
+     men. (_v. Reden_, Zeitschrift für Statistik, 1848, 522.) In
+     the Canton of Tessin, over 11,000 passes are given for this
+     purpose yearly; that is, to more than 10 per cent. of the
+     entire population. The majority go to Upper Italy, but some
+     go to Russia. The cheese-makers, pack-carriers and dealers
+     in chestnuts, migrate from fall to spring; masons, glaziers,
+     etc. in summer.]
+
+     [Footnote 262a-5: Savoyards as "shoe-blacks" etc. in Paris
+     (_L. Faucher_, La Colonie des S. à Paris); Portuguese, as
+     peddlers and pack-carriers in large cities in Brazil
+     (_Jahn_, Beitr., 33); Gallegos in the large cities of Spain
+     and Portugal as water-carriers; Bergamasks, in Milan and
+     Genoa as pack-servants, where they constitute a kind of
+     guild; the inhabitants about Lake Orta (south of the Lago
+     Maggiore) as waiters, and hence the inns there are very
+     good; Bohemian musicians, who carry on quite a different
+     business at home during the winter; Grisons, as
+     confectioners all over Europe. Many villages obtain from
+     this source 20,000 florins. (_Röder und Tscharner_, C.
+     Graübundten, I, 337.) There are at this time about three
+     million people from China, and almost exclusively from the
+     conquered and oppressed province of Fokien, in Farther
+     India, where they execute the finer kinds of labor.
+     (_Ritter_, Erdkunde, IV, 787 ff.)]
+
+     [Footnote 262a-6: In Tessin, the fields are tilled, and
+     badly enough, by old men, women etc. The men spend in the
+     taverns and in all kinds of vice what they saved during the
+     working season (_Franscini_, C. Tessen, 156 ff.) Those who
+     migrate from the vicinity of Osnabrück into Holland are said
+     to bring back with them yearly about 100,000 thalers; but
+     their abstinence from warm food, their bivouacking etc., to
+     which they have recourse for the sake of frugality, lays the
+     germs of numberless diseases. (_J. Möser_, P. Ph, I, 14 ff.)
+     There are serious complaints of the demoralization of women
+     produced in England by the gang-system, in which roving
+     workmen, mostly Irish, are employed under a gang master to
+     perform contract work. (_L. Faucher_, Etudes sur l'Angleterre,
+     2, ed. I, 383, ff.)]
+
+     [Footnote 262a-7: Hence, for instance, Osnabrück complained
+     bitterly of the migration to Holland, because it raised the
+     wages of servants. However, the absolute freedom of removal
+     from one place to another produces not only a leveling of
+     wages, but also an absolute rise of the rate of wages, as
+     may be seen by contrasting it with the _glebae adscriptio_.
+     Compare _supra_, § 160.]
+
+     [Footnote 262a-8: Great danger to the national life of the
+     English people by immigration from Ireland. The Irish
+     laborers, bare-footed and ragged, restricting themselves to
+     potatoes and whisky, have carried their disgusting habit of
+     living in cellars, and of congregating several families
+     together into one room, even with pigs as companions, over
+     to England. (_Th. Carlyle_, On Chartism, 28 ff.; _G. C.
+     Lewis_, The Condition of the Irish in England.) It is said
+     that, in 1819, in London alone, there were over 70,000
+     Irish; in 1826, over 119,000. (Edinb. Rev. XLVII.) Even _J.
+     S. Mill_ would have no hesitation to prohibit this
+     emigration to prevent the economic contagion spreading to
+     English workmen. (Principles, I, ch. 14, 6.) Fortunately now
+     Irish emigration has taken the direction of America, where
+     there is more room. Whether in future Chinese emigration may
+     not greatly endanger the condition of the lower classes,
+     first in America and Australia, and then indirectly in
+     Europe, _quære_. It is estimated that between 1856 and 1859,
+     78,817 Chinese emigrated to the United States. In Australia,
+     to deter them from immigration, a tax of £10 per capita has
+     been imposed on their entry into the country. (_Fawcett_,
+     Manual, 107.)]
+
+     [Footnote 262a-9: Of the East Indian coolies who had gone to
+     Demarara, 469 returned in September, 1869, after having
+     saved in five years, £11.235. (_Appun_, Unter den Troppen,
+     II, 34).]
+
+     [Footnote 262a-10: The Grisons had, during the 17th century,
+     accustomed themselves to living some time in the Venetian
+     territory as shoemakers, 1,000 at a time. The blow was all
+     the more severe when Venice, in 1766, expelled all the
+     families. Since that time most of the Grison confectionaries
+     in the principal cities of Europe have had their origin.
+     (_Röder und Tcharner_, C. Graudbundten, I, 56.) The practice
+     of engaging mercenaries as troops was of great assistance,
+     especially in the interior of Switzerland. During the war of
+     1690 ff., there were nearly 36,000 Swiss hirelings in the
+     French army. Shortly before 1789, even during the period of
+     peace in France, Italy, Spain and Holland, their number may
+     be estimated to have been at least 30,000. (_Meyer v.
+     Knonau_, Gesch. der Schweiz. Eidgenossenschaft, II, 104,
+     464.) No wonder, therefore, that the cessation of the Swiss
+     guards caused a frightful crisis. Expulsion of the
+     Tessinians from Lombardy, 1853.]
+
+
+SECTION CCLXIII.
+
+CONCLUSION.
+
+That the economy of no nation can continue to grow _ad infinitum_ is, in
+general, as easy to believe[263-1] as it is difficult to point out with
+a specification of particulars what are the limits which cannot be
+exceeded. This would be possible first in the case of agriculture. Here
+there are points beyond which every man practically versed in the art
+can see, that an increase of the gross product must be attended by an
+absolute decrease in the net product.[263-2] But even supposing that a
+people had reached this point in their entire agriculture, they might
+still carry on industries, commerce, perform personal services for other
+nations, and obtain remuneration therefor in the means of subsistence
+and manufactured articles. If our nation has once entered on this path,
+it is evident that every improvement of its industry, every advance made
+by foreign countries in the production of raw material, manufactures and
+the consumption of services must result in a growth of our economy.
+David Hume was of opinion that industrial preponderance was in a
+necessary and continual state of transition from one country to another.
+A very highly developed state of industry made a country rich in money
+but enhanced the price of the means of subsistence, and the rate of
+wages; until finally it became impossible for it to compete in the
+markets of the world with cheaper countries, and industry, in
+consequence, emigrated to these.[263-3] But it is easy to see how all
+such limits are extended by the modern improvements in transportation,
+and the consequent facilitation of importation; and how much the remedy
+mentioned in § 198 has gained in importance by the modern advances made
+in machinery and the preponderance in so many respects of machine over
+hand labor.[263-4]
+
+But here it is necessary to distinguish between the "applied" and only
+practical political economy, and "pure political economy." (§ 217.) A
+development thus continued would be attended with great difficulty even
+if the whole world constituted one great empire. We need only mention
+Austria, where some provinces have remained in a very backward, almost
+medieval condition, while others have for a long time manifested the
+symptoms of over-population. How much more in different states. An
+uncivilized nation will frequently not care to increase its consumption
+of our manufactures, if to do so it becomes necessary to carry on its
+agriculture more industriously. Another nation that has already tasted
+of the fruit of the tree of economic knowledge may not be satisfied with
+the mere production of raw material forever. In time it may want to
+carry on commerce and industry itself, and hence consider the breaking
+of its commercial course with us as a species of emancipation from us.
+And, further, how if other highly cultivated nations should compete with
+us in the markets of countries which produce merely raw material? if
+such rivals should wage war in which each party should harm his
+adversary for the mere love of doing harm, and not unfrequently in
+opposition to its own economic interests? I know of no period the
+development of which has not been attended by such disturbances, and
+hence they cannot be said to be entirely unnatural.[263-5]
+
+And even at home and among highly civilized nations, there are wont to
+be many obstacles to advancement on this road of progress. Every great
+economic change is connected as cause and effect, with a variety of
+political, social and other reformations which are never accomplished
+without great hardship and hesitation.[263-6] Where the division of
+labor has been developed to any extent, the formerly existing
+circumstances which must be surrendered for the sake of progress are
+generally synonymous with the interests of some class. This class
+opposes the improvement, and a struggle becomes necessary to carry it
+out. But under certain circumstances, a long delay in effecting a
+necessary reform may paralyse or poison the minds of the people to such
+an extent that they may afterwards have neither the will nor the power
+to successfully advance. This is the most important exception to the
+rule laid down in § 24. The happier the ethnographic and social
+composition of a people, the better the national spirit, the more
+skillful the form of its constitution, the less frequently will it
+happen.[263-7] All this is true especially of over-population and the
+plethora[263-8] of capital which so easily injure the morality of a
+people. New inventions also, by means of which the limits of the
+possibility of production may be incalculably extended can be expected
+only from nations where there is no intellectual decline.[263-9]
+
+     [Footnote 263-1: There are, indeed, different opinions on
+     this matter, and they were preponderant during the second
+     half of the eighteenth century. Compare _Condorcet_, Tableau
+     historique, des Progrès de l'Esprit humain, especially
+     Epoque X, in which he treats of future progress.
+     Nevertheless, he obscurely alludes (Œuvres, VIII, 350) to
+     a time when no further increase of population should take
+     place. _Malthus_, Principle of Population, III, ch. 1,
+     thoroughly demonstrates that in regard to the great
+     prolongation of human life which he foresaw, the idea of the
+     indefinite and that of the infinite were confounded with
+     each other.
+
+     In that young and vigorous country, the United States of
+     America, we find a popular school which, to say the least,
+     hints at the principle of infinite growth. Thus, for
+     instance, _Peshine Smith_ (Manual of Political Economy, New
+     York, 1853) teaches that the means of subsistence consumed
+     at the place of production are not destroyed, but may return
+     just as much to the soil in the form of manure as they had
+     previously drawn from it (ch. 1). Capital has a tendency to
+     increase more rapidly than population (ch. 6). The rate of
+     wages has a tendency to increase with the increase of
+     population (ch. 5). Mechanical progress increases the value
+     of human labor and causes that of capital to decline
+     relatively (ch. 3). He reverses, with _Carey_, Ricardo's law
+     of rent (ch. 2).
+
+     _Carey_, also, relying on the assumption that more fertile
+     land is brought under cultivation as civilization advances,
+     allows us to see no limits whatever to this growth. (Past,
+     Present and Future, ch. 3.) Still more clearly is the
+     principle of unlimited and continually accelerated growth
+     laid down in his Principles of Social Science, I, 270.
+     _Carey_ illustrates this principle by means of the example
+     of the continually accelerated motion of a falling body,
+     without noticing the practical _ad absurdum deductio_
+     involved in it, that at the end of the thousandth second a
+     falling body reaches a velocity of 1,000,000 feet. (loc.
+     cit., 204.) But even in England, at present, we find such
+     thoughts at times. _Banfield_, for instance, can scarcely
+     understand how the relative rates of wages, interest and
+     rent can decrease, except by an increase of their absolute
+     amounts. See his Organization of Industry, passim. And so
+     _v. Prittwitz_ entertains the most rosy-colored hopes. He
+     has no doubt that all governments which are still bad will
+     see the error of their ways and correct them. (Kunst reich
+     zu werden, 79.)
+
+     The growth of capital and even of human wealth in general is
+     capable of indefinite increase (81). The rate of interest
+     would sink almost to zero if so much capital were
+     accumulated that no "undertakers" could be found who care to
+     use it (305). Large farming will entirely cease in the
+     future (307), and when the system of railroads is entirely
+     completed, the whole earth will present the appearance of
+     one immense park (29). He would allay all fear concerning
+     the exhaustion of combustible material by pointing out the
+     possibility consequent upon improved means of communication,
+     that a great many of the inhabitants of the colder regions
+     of the earth might migrate in winter to a warmer climate
+     (21). At the same time, artesian wells might be made to
+     bring to the surface the internal heat of the earth, or
+     metallic plates connected with the wings of a windmill,
+     might be made to generate heat by their friction on one
+     another (22). See the same author's Andeutungen über
+     künftige Fortschritte und die Gränz en der Civilization, 21
+     Aufl., 1855.]
+
+     [Footnote 263-2: According to § 165, we might say: where the
+     product of the workman last employed is not sufficient to
+     meet his own wants. Thus _J. B. Say_ says that only that can
+     be considered a product, the utility of which is at least
+     equal to its cost. He makes use of the example where a three
+     days' journey is necessary to obtain the food requisite for
+     one. As the limits of production he gives the following: too
+     few human wants; too costly methods of production; too high
+     taxes, natural obstacles created by infertility or too great
+     distance. (Traite I, ch. 15. Cours pratique, I, 349.)]
+
+     [Footnote 263-3: _D. Hume_, Discourses, No. 3, On Money.]
+
+     [Footnote 263-4: England is especially well situated in this
+     respect, in consequence of its excellent commercial position
+     and its surplus of the principal auxiliary products, such as
+     coal, iron, etc. Should the coal-beds of such a
+     manufacturing country be ever entirely exhausted, it is
+     scarcely possible to see, from our present point of view,
+     how the most rapid and most frightful decline of its
+     national economy could be averted! Compare the opening
+     address before the British Association, by Armstrong, at
+     Newcastle (1863), who prophecies the exhaustion of the
+     English coal-beds in 212 years at the rate at which coal had
+     been consumed during the eight preceding years. According to
+     the report of the royal committee on the coal question
+     (1871, vol. III), Great Britain has still attainable
+     deposits, that is 4,000 feet deep, 90,207,000,000 tons of
+     coal in its coal beds already known; and in beds not yet
+     worked, 56,273,000,000 tons. Compare, also, _Jevons_, The
+     Coal Question (1866). It is estimated that the most
+     productive French coal-field will be exhausted in 100 years.
+     (_M. Chevalier_, Rapport du Jury international de 1867,
+     57.)]
+
+     [Footnote 263-5: Even _J. S. Mill's_ views on the
+     probability of perpetual peace on earth are altogether too
+     rosy: Principles III, ch. 17, 5. This is still truer of
+     _Buckle_. History of Civilization, I, ch. 4. In the modern
+     state-system of Europe, there is wont to be in each
+     generation, a peaceful half and a warlike one, which follow
+     each other as ebb and flow. I need only mention the
+     preponderance of peace between 1714 and 1740, between 1763
+     and 1793, and between 1815 and 1853. It happens frequently
+     that at the close of the period of peace, intelligent and
+     noble but unhistorical and therefore short-sighted minds
+     begin to dream of perpetual peace. Even a man like _Dohm_
+     (Ueber die bürgerliche Verbesserung der Juden, 227 seq.)
+     expected, in 1785, that considering the size and quality of
+     armies, and the mutual knowledge of all countries of one
+     another, that instead of actually waging war, nations might
+     send to each other well authenticated statements of the
+     strength, for instance, of their navies and of the sums
+     necessary to maintain them for a number of years.]
+
+     [Footnote 263-6: The Mongols saw the abandonment of their
+     nomadic life in so gloomy a light that they seriously
+     thought of turning all China with its countless human beings
+     into pasture-land! (_Gibbon_, History of the Roman Empire,
+     ch. 34.)]
+
+     [Footnote 263-7: It is a fact characteristic of the history
+     of England, that Norman supremacy and afterwards bondage
+     were wiped out so gradually that contemporary historians
+     have nothing to say of the transformation. (_Macaulay_,
+     History of England, ch. 1.) Repeal of the corn laws
+     _vis-a-vis_ of the most recent industrial advance of the
+     country.]
+
+     [Footnote 263-8: Even _Ricardo_ says that in a highly
+     civilized country the continual making of savings is by no
+     means desirable. Carried to an extreme, saving would lead to
+     the equal poverty of all. (Principles, ch. 5.)]
+
+     [Footnote 264-9: The _Beccaria_, Economia publica I, 3, 31,
+     teaches that the limits of population are to be found at the
+     point where agriculture cannot be made to yield an
+     additional increase of products, and where foreign countries
+     do not offer any more a counter value of their products in
+     exchange for the manufactured articles and the services to
+     be furnished them. Similarly, _Büsch_, Geldumlauf III, 7;
+     otherwise, indeed, V, 15, in which, in opposition to _Adam
+     Smith_, it is claimed that the work to be performed by one
+     nation for others has no limits which cannot be exceeded.
+     _Steuart's_ theory of the limits to the production of every
+     commercial nation: Principles, I, ch. 18. _Lauderdale_,
+     Inquiry, ch. 5, 274 ff., says categorically, that all wealth
+     which is produced by the transformation of raw material
+     depends on the production of such raw material, and of the
+     means of subsistence necessary for the support of the labor
+     employed in such transformation. Excellent investigations by
+     _Malthus_ in the additions (1817) to the Essay on the
+     Principles of Population, II, ch. 9-13. Compare _Roscher_
+     Nationalöcon. des Ackerbaues, § 162. As early a writer as
+     _Mirabeau_, Philosophie rurale, ch. X, was of opinion that a
+     country whose industries were on as large a scale as those
+     of Holland, dispersed its people indeed over the whole
+     earth, made them independent at home, but almost destroyed
+     their nationality.]
+
+
+SECTION CCLXIV.
+
+THE DECLINE OF NATIONS.
+
+That, after a whole nation has reached the zenith of its prosperity, it
+is subject to old age and to decline, and cannot avoid them, is in
+general, a proposition susceptible neither of proof nor
+refutation.[264-1] This uncertainty is practically very useful, for were
+it otherwise, mediocre statesmen might become either discouraged or
+indifferent. However, we should not assume, as so many do,[264-2]
+without proof, the earthly immortality of nations, provided only they
+observe a proper diet; nor call the science of the physiology or
+medicine of nations a chimera, simply because it confesses that it knows
+of no preventive against such old age. It has doubtless been the fate of
+many nations to die, that is, not precisely to be destroyed--just as in
+the physical world, not a particle of matter is lost--but to see their
+former national personality disappear, and themselves continue to exist
+only as component parts of some other nation.[264-3] This phenomenon,
+indeed, finds its analogon in every thing that is human, but seems to
+contradict a law of nature which very widely prevails, viz.: that it is
+easier to advance in a certain direction in proportion to the distance
+gone over in it already.[264-4]
+
+The problem of decline, however, is solved by the enervating influence
+of possession and power, an influence which only a select few among men
+can escape. And yet to every external advance there must be a
+corresponding advance of the interior man, else there is a fall great in
+proportion to the height before attained. The greater number take their
+ease once they have attained the object of their ambition. I need only
+cite the example of the posterity of those men who have grown rich by
+unusual exertion. Success itself generates vanity and a feeling of false
+security, the latter especially, inasmuch as that is expected from the
+whole community, from the state for instance, from others generally,
+which should be the fruits of one's own vigilance and one's own
+endeavors. It should not be forgotten that the nation is made up of
+individuals.[264-5]
+
+In addition to this there is the striving after the new for the sake of
+novelty; a striving promotive of progress in itself, and without which
+the full development of the forces of civilization would probably not be
+possible. But if the genius of no nation is possessed of infinite
+capacities, it must happen, at last, that, in case the best has been
+attained, and the demand for novelty continues, men will go over to that
+which is worse. Even very great competition has here a dangerous
+influence, since it raises the great mass of the incompetent to the
+dignity of judges, and endeavors to seduce them by illicit means; in the
+arts, for instance, sensuousness is made to take the place of the
+feeling of the beautiful.[264-6]
+
+There is, further the process of undeceiving, inseparable from the
+prosecution of any ideal purpose. Such ideals have always very much of
+human weakness in them. The great crowd of ordinary men follow, as a
+rule, their material interests. Only occasionally do they rise to the
+height of ideal things; and here we discover the brightest points in
+history. Later there comes uniformly a period of disenchantment and of
+exhaustion after the debauch is over. When all the ideals accessible to
+the nation have been destroyed or outlived, nothing can be done to
+awaken the masses from their slumber, or induce them to shake off their
+inactivity.
+
+As a rule, the influences which have accelerated a nation's progress and
+brought it to the apogee of its social existence end in precipitating
+its ruin by their further action. Every direction which humanity takes
+has almost always something of evil in it, is limited in its very
+nature, and cannot stand its extremest consequences.[264-7] All earthly
+existence bears in itself, from the first, the germs of its decay.
+
+However, to calm the feeling of human liberty, we may boldly assert that
+there never was a nation remarkable for its religiousness and morality
+which declined so long as it preserved these highest of all goods; but
+then no nation outlived their possession.
+
+     [Footnote 264-1: Even in the case of individuals, that death
+     is necessary is not susceptible of absolute demonstration;
+     but no one doubts it, because of the experience so
+     frequently repeated; an experience, however, which cannot be
+     had in the same degree in the case of whole nations.]
+
+     [Footnote 264-2: Remarkable controversy between _Hume_ and
+     _Tucker_. The former had charged the latter with holding the
+     opinion that industry and wealth must necessarily continue
+     to advance indefinitely; and yet all things had in them the
+     germs of decay. _Tucker_, on the other hand, remarked that
+     all he wished to say was that no one could point out where
+     progress must necessarily cease. All political bodies like
+     all natural bodies might decay; but it is not necessary that
+     they should. With good laws and morality they would become
+     more vigorous with increasing age. A great deal depended
+     here on the more general distribution of property, on the
+     assurance that industry would meet with its reward, and on
+     the removal of the principal defects in the English
+     electoral system. (Four Tracts, 477 seq. Two Sermons, 30.)
+     Most political economists are of the same opinion; thus
+     _McCulloch_, Principles, II, 3. See, however, the last two
+     sections in _Ferguson_, History of civil Society.]
+
+     [Footnote 264-3: We assume that a new nation has arisen,
+     when, after the disappearance of an earlier and high
+     civilization, combined with the taking up of new
+     ethnographic elements, we perceive anew the easily
+     recognizable symptoms of youthful immaturity.]
+
+     [Footnote 264-4: Expressed in the domain of religion in the
+     words of the Savior: _Matth._, 25, 29. But at the same time
+     the equally well-known expression in _Luke_, 12, 48, must be
+     fulfilled. Compare _H. Brocher_, L'Economie monétaire, 1871,
+     25 ff.]
+
+     [Footnote 264-5: Schools of art are generally ruined by
+     mannerism. Of the two great means of education in art, the
+     study of nature and the study of classic models, the latter
+     is the easier, and the former is readily neglected for it.
+     Then there is the endeavor to flatter the master, which is
+     most effectually done by imitating his faults; and the fact
+     that pretending connoisseurs are most cheaply satisfied by
+     mannerism.]
+
+     [Footnote 264-6: There is a peculiar charm, very productive
+     in itself, attaching to the cultivation of a field which has
+     been but little cultivated, and which, therefore, has the
+     advantage of promising something new. On the other hand, the
+     decline of almost all literatures begins with this, that
+     writers and readers no longer think out completely the forms
+     of speech, modes of expression, etc. to which they have
+     become used, as their original creators did; a great
+     temptation to have recourse to a more and more spicy
+     literary style. _J. S. Mill_ considers the stationary state
+     (Principles, IV, ch. 6) a very pleasant one to contemplate,
+     but he overlooks the very important fact, that as men are
+     constituted it uniformly introduces national decline.]
+
+     [Footnote 264-7: Great rulers, of whom it is said that they
+     conquered the world by following out their own ideas to
+     their ultimate consequences, would most certainly have lost
+     the world by reason of the same logic if they had continued
+     it only fifty years longer. What would have become of
+     Alexander the Great and Charlemagne if they had lived one
+     generation more?]
+
+
+SECTION CCLXV.
+
+CONCLUSION.
+
+All the separate nations which have lived side by side, or followed one
+another, are embraced under the general name, humanity. Who would deny
+the existence of a point, viewed from which humanity might be seen to
+constitute one great whole; all the variations and differences in its
+life only one great plan, one wonderful sovereign decree of the divine
+will, grandly and wonderfully executed by God? Or who is so bold as to
+say that he stands on this point himself? Theologians should be the last
+to do it, since even the apostle Paul calls God's ways inscrutable. So
+long as we do not even know whether we live in one of the first or one
+of the last decades of humanity, every system of universal history in
+which each nation and period is made to take its place in due
+subordination to its superiors, can be only a castle in the air; and it
+is a matter of indifference whether the basis of the system is
+philosophical, socialistic, or natural-philosophical.[265-1]
+
+The usual error into which the builders of such history fall, is that
+they consider the peculiarities of certain stages of civilization, which
+may be shown to exist among all nations in the corresponding period of
+their history as the national peculiarity of the single people with
+whose history they are, for the time being, concerned. They deduce
+wonderful consequences, from the premises they laid down, but which our
+increasing acquaintance with other nations immediately shows to be
+unfounded.
+
+There is, however, a number of facts really peculiar to a people which
+make up the national character, and which may give to an observer
+endowed with an imaginative mind, an inkling to the special vocation in
+the economy of providence of a particular people. That a positive system
+can be constructed from the material of such facts, I do not, indeed,
+think. But they are at least a safeguard against false systems, against
+the improper application of analogies, against the idle, fatalistic
+exaggeration of the maxim: "nothing new under the sun!" It had almost
+become the fashion to compare our present with the period of decline of
+the Greek and Roman republics. Frightful parallel, in which the greatest
+and most undoubted differences were frequently overlooked for smaller
+and certainly questionable similarities. Is not the abolition of
+slavery, which has been accomplished among all the most important
+nations of the present, something new and of great import from a moral
+and economic point of view?[265-2] Can the national wealth, which
+depends on labor and frugality, be in any way compared with that which
+was based on plunder? And so, no one can calculate the benefits which
+may be reaped by posterity from the mere continuation of the scientific
+and especially natural-philosophical results obtained by former
+generations. The discovery of the whole earth soon to be completed, and
+its probable consequence, the civilization of all nations of any
+importance, must remove the danger to which all the civilized nations of
+antiquity eventually succumbed, namely, destruction by entirely
+barbarous hordes. Nor should the significance of the state-system of
+Europe, which might be extended soon enough into a state-system
+embracing the world, be under-estimated. Macedonia would not so readily
+have subjugated the Hellenes and the Persians if the great powers of the
+west, Rome and Carthage, had intervened at the right time. And there,
+too, is Christianity, whose means of grace are at hand for every one at
+all times, for his complete moral regeneration.
+
+In one word, the usual argument with which the "man of experience" meets
+the man of inventive genius, that there never was anything of the like
+seen before, may suffice in thousands and thousands of cases; but it
+affords no strict proof. It is the province of genius to compel rules to
+extend their limits. But science should never forget that self-denial is
+necessary to the discovery of truth.[265-3]
+
+     [Footnote 265-1: I mean here, especially, the attempt so
+     frequently made (by _Herder_, for instance) to draw a
+     parallel between the periods of universal history and the
+     age at different times of the individual, or with the
+     seasons. If there were a great many humanities between which
+     we might institute a comparison, we might accomplish
+     something with the analogy, but----!]
+
+     [Footnote 265-2: However, even such a man as Minister
+     _Stein_, thinks that a laboriously acquired wealth may
+     affect a people's morality injuriously. "The striving after
+     wealth is the striving for the possession of the means of
+     satisfying chiefly sensuous wants. This striving may
+     suppress all nobler feelings, whether it find expression in
+     violence or industry." Contrariwise, it is possible that
+     some of the noblest of human qualities may be found side by
+     side with the forcible acquisition of wealth, viz.: courage,
+     patriotism. (_Pertz_, Leben Steins, II, 466.)]
+
+     [Footnote 265-3: Compare my discourse on the relation of
+     Political Economy to classic antiquity in the transactions
+     of the royal Saxon Academy of Sciences, May, 1849; also many
+     excellent remarks in _Knies_, Polit. Oekonomie. _Chr. J.
+     Kraus_, has zealously discussed the question whether the
+     development of humanity turns about eternally in a circle,
+     or whether it forever advances to a progressively better
+     future. He strongly advocates the latter view, and on
+     grounds which appeal both to the head and to the heart.
+     (Vermischte Schriften, III, 146 ff.; IV, 277 ff.)]
+
+
+
+
+APPENDIX II.
+
+INTERNATIONAL TRADE.
+
+
+
+
+INTERNATIONAL TRADE.
+
+
+SECTION I.
+
+THE MERCANTILE SYSTEM.
+
+The principal peculiarities of the so-called mercantile system depend on
+a five-fold over-estimation: of the density of population, of the
+quantity of money, of foreign commerce, of the industries concerned with
+the transformation of materials (_Verarbeitungsgewerbe_), and of the
+guardianship of the state over private industry.[A2-1-1] All these
+tendencies are very intelligible, and almost self-evident, in a
+sovereign city-economy (_Stadtwirthschaft_) as opposed to the governed
+and worked-out (_ausgebeuteten_) country districts; as they are found
+even in the city-republics of later medieval times. But they are also
+natural in whole national economies, during that period of youthful and
+rapid growth in which the increasing density of population continues
+still, for a long time, to be really only a spur and an assistance, and
+in which, therefore, there can be no expression of anxiety concerning
+over-population; in which the new and rapidly growing division of labor
+draws attention particularly to the market-side of all businesses and to
+the circulation of goods; in which the progress from trade by barter to
+trade by money necessarily makes the volume of money needed even
+relatively greater; but especially are they natural in that world-period
+in which foreign trade suddenly increased enormously in consequence of
+the discovery of the whole earth; when the citizen classes of the people
+assumed immense importance as compared with the landed and clerical
+aristocracy, and when, in the internal affairs of state absolute
+monarchy, and in foreign politics, the system of equilibrium, through
+the instrumentality of the great compact-formation of states prevailed.
+
+All these tendencies are most intimately connected with one another. If
+precious metal-money be really the essence of national wealth,[A2-1-2] a
+people who possess no gold and silver mines themselves;[A2-1-3] for
+instance, Italy, France and England, can become richer only through
+foreign trade,[A2-1-4] by means of a favorable balance produced by a
+preponderance of their exports over their imports; and only inasmuch as
+this excess is balanced by a payment in money from foreign parts. And
+so, too, in foreign trade, one nation can gain only what another nation
+has lost.[A2-1-5] Gain is promoted not only by direct obstacles placed
+in the way of the exportation of the precious metals, but still more by
+the value-enhancement of the exported commodities, and by the
+value-diminution of the imported commodities.[A2-1-6] And as commodities
+which have undergone the process of transformation are, on an average,
+more valuable than raw materials, the state can best carry out this
+policy by import duties, import prohibitions, and export premiums on
+manufactured articles, as well as by export duties, export prohibitions
+and import premiums on raw materials.[A2-1-7] This is extremely
+necessary against those nations who are superior to others in culture,
+wealth, the cheapness of labor and capital; and hence the envy of the
+mercantilists was directed chiefly against Holland, and after Colbert's
+time also against France.[A2-1-8] Such commodities as are not at all
+adapted to the nature of a country, because of its climate, for
+instance, the nation should produce at least in colonies of its own,
+that it might, in this way, emancipate itself from foreign
+countries.[A2-1-9] As the clear distinction drawn to-day between money
+and capital has asserted itself only since Hume's time, the notion that
+prevailed for centuries, that much money, much trade and a large
+population mutually conditioned one another, was a very natural
+one.[A2-1-10]
+
+The younger and more refined conception of the mercantile system is
+distinguished from the coarse Midas-believing one, by two tendencies
+especially:
+
+A. By the more thorough consideration of the balance of trade and the
+consequent limitation of the traditional supposition, that the excess of
+exports over imports would be always made up in cash money.[A2-1-11]
+
+B. By the extension of the field of view, so that not only the direct
+but also the indirect and more remote effects of international trade
+were taken into consideration.[A2-1-12]
+
+A certain over-estimation of the circulation of goods continued to
+characterize even the latest adherents of the mercantile
+system.[A2-1-13] Yet the caricature drawn by the tradition of more
+recent text-books, of the mercantilists, is true only of the inferior
+ones among them.[A2-1-14] The most distinguished of them,
+Botero,[A2-1-15] for instance, approximate more closely to the science
+of the present day than is usually supposed.
+
+     [Footnote A2-1-1: Compare _Roscher_, Geschichte der
+     Nationalökonomik in Deutschland, I, 228 ff.]
+
+     [Footnote A2-1-2: Even the remarkable Florentine pamphlet of
+     1454 (_Jablonowski's_ prize essay of 1878, app. Beilage, 4)
+     complains of the decrease of industry principally on account
+     of the diminution of money caused thereby. "Wealth is
+     money," says _Ernestine_, essay of 1530, on the coin, and
+     explains the smaller wealth of the silver-country, Saxony,
+     as compared with England, France, Burgundy and Lombardy, by
+     the greater exportation of commodities of these countries,
+     by means of which they draw the silver of Saxony to
+     themselves. (_Roscher_, Geschichte, I, 103.) _Bornitz_,
+     Theorie wie sich der Staat diesen _nervus rerum_ in grösster
+     Menge verschafft: De Nummis (1608), II, 4, 6, 8. _A. Serra_,
+     Sulle Cause, che possono far abbondare un Regno di Monete
+     (1613), places excess of gold and silver and poverty as
+     diametrical opposites, at the head of his work. _Hörnigk_,
+     Oesterreich über Alles, wann es nur will (1684), says that
+     it is "better to give two dollars which remain in the
+     country for a commodity, than only one dollar which goes out
+     of the country" (ch. 9). According to _Schröder_, Fürstliche
+     Schatz- und Rentkammer (1686), the export of commodities is
+     a blessing only "when we can turn them into silver through
+     our neighbors." (LXX, 12.) Even _Locke_ held similar views
+     (Considerations of the Consequences of the Lowering of
+     Interest, 1691. Further Considerations concerning Raising
+     the Value of Money, 1698). On _Davenant's_ inconsistency in
+     this respect, compare _Roscher_, Geschichte der Englischen
+     Volkswirthschaftslehre, 110 ff. The quantity of money
+     remaining the same, a country grows neither richer nor
+     poorer (Christ. Wolff, Vernünftige Gedanken vom
+     gesellschaftlichen Leben, 1721, § 476). _J. Gee_, Trade and
+     Navigation of Great Britain considered (1730), bewails the
+     folly of those to whom "money is a commodity like other
+     things, and also think themselves never the poorer for what
+     the nation daily exports," (p. 11). _Justi_, von Manufacturen
+     und Fabriken (1759 seq.), considers it the principal object
+     of industry simply to prevent the outflow of money.
+     Similarly, _Pfeifer_, Polizeiwissenschaft (1779), II, 286.
+     Even Frederick the Great considered it "true and obvious"
+     that "a purse out of which money is taken every day, and
+     into which nothing is put in turn, must soon become empty."
+     (Œuvres, VI, 77).]
+
+     [Footnote A2-1-3: The thirst for gold which, in the
+     sixteenth and seventeenth centuries, drove so many emigrants
+     to the western Eldorado, reminds one, by reason of its
+     enthusiasm, of the crusades to the Holy Land. The striving
+     after the making of gold which the emperors Rudolph II.,
+     Ferdinand III., Leopold I., Frederick I. of Prussia,
+     Christian IV. of Denmark, Christian II. and Augustus the
+     Strong of Saxony, Heinrich Julius of Braunschweig, Frederick
+     of Würtemberg, harbored, and also the Silesian and
+     Brandenburg princes even during the Hussite war (_Riedel_,
+     Cod. Dipl. Brandenb., II, 4, 151), was, to a great extent,
+     misplaced philosophy; men went in search of the _materia
+     universalissima_, the _spiritus universalis_, from which all
+     that is receives its _esse et fieri_, the universal elixir,
+     at once the life-power of man, the universal medicine and
+     maturing principle of natural bodies. (_Roscher's_ Gesch.,
+     I, 230.)]
+
+     [Footnote A2-1-4: _Schröder_ justifies the little estimation
+     in which he holds internal commerce by saying that "a
+     country may indeed grow and become powerful by its means,
+     but cannot gain in wealth;" just as a dress embroidered with
+     pearls is not made more costly by taking the pearls from the
+     cuffs and putting them upon the cape. (F. Schatz- und
+     Rentkammer, XXIX, 3.) According to the Fredrickian
+     theorizer, _Philippi_, "internal trade scarcely deserves the
+     name of commerce." (Vergröss. Staat, 1759, ch. 6.) _Sir J.
+     Steuart_ still teaches that an isolated state may, indeed,
+     be happy, but that it can grow rich only through foreign
+     trade and mining. (Principles, II, ch, 13.) The same
+     fundamental thought finds expression in the title of _Th.
+     Mun's_ celebrated book: England's Treasure by Forraign
+     Trade, or the Balance of our Forraign Trade is the Rule of
+     our Treasure (1664).]
+
+     [Footnote A2-1-5: _Il est claire qu'un pays ne peut gagner,
+     sans qu'un autre perde, et qu'il ne peut vaincre sans faire
+     des malheureux_ (_Voltaire_, Dict. phil., art. Patrie). Even
+     _Verri_ was, in his earlier period, of the opinion: _ogni
+     vantaggio di una nazione net commercio porta un danno ad un
+     altra nazione; lo studio del commercio è una vera guerra_
+     (Opuscoli, 335).]
+
+     [Footnote A2-1-6: Even in 1761, the learned _Mably_ could
+     say: _la défense de transporter les espèces d'or et d'argent
+     est générale dans tous les états de l'Europe ... il n'y a
+     point de voie moins sensée_ (Droit public, II, 365).]
+
+     [Footnote A2-1-7: The obstacles placed in the way of
+     importation by governments originated, in great part, from
+     views entertained on sumptuary legislation; in that of
+     exportation, from a desire to prevent a scarcity of certain
+     articles, as may be clearly seen in _Patricius_ (De Inst.
+     Reipublic., V, 10, I, 8), and even in _Sully_ (Mémoires, XI,
+     XII, XIII, but especially XII), _Bornitz_, _Besold_, _Klock_
+     and _v. Seckendorf_. (Compare _Roscher_, Gesch., I, 191,
+     202, 215, 247.) But the mercantilistic germs show themselves
+     even in _Hutten_ and _Luther_. (_Roscher_, I, 44, 63.) The
+     advance made between the police ordinance of the empire of
+     1530 and that of 1548, is very remarkable in this respect.
+     The mercantile theory of duties appears very systematically
+     elaborated even in _J. Bodinus_, De Republica, 1577, VI, 2;
+     in Germany in _Hörnigk_, Oesterreich über Alles, ch. 9.]
+
+     [Footnote A2-1-8: The English jealousy of Holland is
+     represented especially by _Sir W. Raleigh_ (?), Observations
+     touching Trade and Commerce with the Hollander and other
+     nations, 1603, Works, III, 31 ff.; _Sir J. Child_, A new
+     Discourse of Trade (1690), and _Sir W. Temple_, Observations
+     upon the U. Provinces (1672). Compare _Roscher_, Z. Gesch.
+     der englischen V. W. Lehre, p. 31 ff., 125 ff. The English
+     jealousy of France: _Sam. Fortrey_, England's Interest and
+     Improvement (1663). _R. Coke_, A Treatise, wherein is
+     demonstrated that the Church and State of England are in
+     equal Danger with its Trade (1671), and the anonymous,
+     Britannia languens (1680). _Per contra_, especially the
+     work: England's Greatest Happiness, wherein it is
+     demonstrated that a great Part of our Complaints is
+     causeless (1677). Here we find chapters with the title: To
+     export Money our great Advantage; the French Trade a
+     profitable Trade; Multitudes of Traders a great Advantage.
+     _Petty_ gave the best solution to the question in dispute,
+     in his posthumous Political Arithmetic concerning the Value
+     of Lands, etc. _Hörnigk_ would enlist his service in the
+     cause of the jealousy against France, immediately after the
+     disgraceful defeats which Germany in 1680 ff. suffered in
+     the midst of peace, by Louis XIV. Concerning smaller works
+     of the same period and in the same direction, see
+     _Roscher's_ Gesch., I, 299 seq.]
+
+     [Footnote A2-1-9: Even _Peter Martyr_ considered the
+     colonization of countries which yielded the same products as
+     the mother country of no advantage (Ocean, Dec., VIII, 10).
+     On Spanish maps the most flourishing portions of America at
+     present are designated as _tierras de ningun provecho_. And
+     the English for a long time, ascribed value to their New
+     England possessions, so far as the mother country was
+     concerned, only to the extent it was possible to provide the
+     West Indies from that quarter with corn, meat and wood.
+     (_Roscher_, Kolonien, p. 262.)]
+
+     [Footnote A2-1-10: Compare _Botero_, Ragion di Stato (1591);
+     _Law_, Money and Trade (1705), p. 19 ff.; and _Verri_,
+     Opuscoli, pp. 325, 333. Meditazioni (1771), cap. 19.]
+
+     [Footnote A2-1-11: Thus _Child_, spite of all his esteem for
+     the discoverers of the balance-problem, calls attention to
+     cases in which exports suffer so much waste (_Abgang_), or
+     imports are sold so advantageously, that an apparently
+     favorable balance made a people poorer, and an apparently
+     unfavorable one, richer. From the value of the imported
+     commodities the self-earned freight has to be deducted.
+     Countries like Ireland, many colonies, etc., have a
+     preponderance of exportations, because they, by means of the
+     same, pay a rent to absent capitalists or to landowners. (p.
+     312 ff.)]
+
+     [Footnote A2-1-12: _Mun_ admits that, for instance, the East
+     Indian trade makes England richer, although it causes the
+     exportation of much English money. But the exporter of money
+     who, in exchange for it, brings back reëxportable
+     commodities, should be compared to the sower. (Ch. 4.)
+     Similarly, _C. Roberts_, The Treasure of Trafficke (1641),
+     and even _A. Serra_, III, 2. According to _Child_, the loss
+     in the East Indian trade is compensated for chiefly by this,
+     that England obtains there the saltpeter it needs to satisfy
+     its demand, and that the ships engaged in that trade are
+     peculiarly well fitted for war. (l. c.) _Saavedra Faxardo_,
+     for similar reasons, declared the discovery of America to be
+     a misfortune. (Idea Principis Christiani politici, 1649,
+     Symb., 68 seq.)]
+
+     [Footnote A2-1-13: Thus _Law_, _Dutot_, _Darjes_ and
+     _Büsch_. Even the violent opponent of the mercantile system,
+     _Boisguillebert_, could not entirely escape this view.
+     Compare vol. I, § 96.]
+
+     [Footnote A2-1-14: This is true, especially of the
+     protectionist weekly paper: British Merchant or Commerce
+     preserved (1713 ff.), in the contest with the weekly Tory
+     paper edited by _Defoe_: Mercator or Commerce retrieved,
+     which Charles King systematized and published anew in 1721.
+     Later _Ulloa_: Noticias Americanas (1772), cap. 12. _Adam
+     Smith_ also concedes that many of the best writers on
+     commerce, at the beginning of their books, allow that the
+     wealth of a country consists not only in gold and silver,
+     but also in goods of every description; but that further on
+     they tend more and more to forget this qualification of the
+     meaning of wealth. (W. of N., IV, ch. 1.) Hence it is that,
+     in recent text-books, so many are now called adherents and
+     now opponents of the mercantile system.]
+
+     [Footnote A2-1-15: Even _Colbert_ says: nothing is more
+     precious in a state than the labor of men (Lettres,
+     Instructions et Mémoires de C. publiés par P. Clement, 1861
+     ff., II, 105). The great trade with foreign countries and
+     the small trade in the interior contribute equally to the
+     welfare of nations. (II, 548.) I would not hesitate to do
+     away with all privileges, the moment I found that greater or
+     as great advantages attended their abolition. (II, 694.) His
+     duty-system of 1664 was a simplification, but also an
+     important diminution of his earlier chaotic tariff. (II, 787
+     ff.)]
+
+
+SECTION II.
+
+REACTION AGAINST THE MERCANTILE SYSTEM.
+
+The reaction against the mercantile theory of the balance of trade,
+which reached its height in Adam Smith, was based principally upon the
+following considerations:
+
+A. Precious-metal-money is a commodity like all other commodities, and
+therefore useful only for certain purposes. It is as little to the
+wealth-interest of a people, by means of a continually favorable
+balance, to import infinite quantities of the precious metals, as it is
+to its power-interest, by means of its commercial policy, to accumulate
+infinite stores of powder. The person who possesses other exchangeable
+goods will be as well able, in case of need, to obtain gold and silver
+therewith as to obtain powder.[A2-2-1] We part with no capital when we
+export the precious metals and import other commodities instead; we
+simply exchange thereby one form of capital for another.[A2-2-2] The
+notion that the gain in trade is coincident with the balance of account
+paid in cash, is just as palpably false in the trade among nations as in
+trade among private persons.[A2-2-3] It would be a decided hardship to
+most men, if they were to receive payment at once in money for all that
+they possessed: and the nation is made up of individuals.[A2-2-4] And
+even the reasons which make payments in cash more uniformly desirable,
+in the case of private persons not engaged in mercantile pursuits, cease
+in the case of whole nations.[A2-2-5]
+
+B. But a continual over-balance (_Ueberbilanz_) is not at all possible.
+Every relative increase of the amount of money must enhance the price of
+commodities, lower the value of money, and thus produce an exportation
+of money until a restoration of the level with other countries.[A2-2-6]
+The prohibitions of the exportation of money, so often resorted to, can
+avail nothing, because the precious metals are among the specifically
+most valuable goods; and because it is easier yet to smuggle them out of
+a country than to smuggle them into it.[A2-2-7]
+
+C. The signs by which the mercantile system supposed it could estimate
+the favorableness of the balance of trade are essentially
+deceptive.[A2-2-8] We cannot, for instance, from the course of exchange,
+determine whether the payments made by us to foreign countries have been
+made for purchases, to absentees, etc., or as loans; and yet, according
+to the mercantilists, the latter are as useful to us as the former are
+injurious.[A2-2-9] And even the most accurate tariff-record
+(_Zollregister_) of the exportation and importation of commodities
+affords no guaranty[A2-2-10] that, in many instances, the rendering of
+the counter-value may not remain absent, by reason of bankruptcy,
+shipwreck, or the emigration of property.[A2-2-11]
+
+D. Every act of exchange is advantageous only because through it a
+greater value is received than the one parted with was. (?) Fortunately,
+in normal trade, where both parties satisfy a real want, and neither
+party is deceived, this is actually the case on both sides.[A2-2-12] In
+accordance with all this,[A2-2-13] Baudrillart is of opinion that the
+whole theory of the balance of trade no longer exists.
+
+     [Footnote A2-2-1: Even _Petty_ and _North_, with their deep
+     insight into the nature and functions of money, could not
+     possibly entertain the mercantile theory of the balance of
+     trade. _Petty_ considers the exportation of money useful,
+     even when commodities are brought back in exchange for it,
+     and which are of greater value in the interior than the
+     exported money. (Quantulumcunque concerning Money, 1682.)
+     According to _North_, no one is richer simply because he has
+     his property in the form of gold and silver plate, etc.; he
+     is even poorer, because he allows his goods to lie in that
+     shape unproductive. Hence the importation of money is, in
+     itself, not more advantageous than the importation of logs
+     of wood; at most, the difference that, in case of excess, it
+     would be easier to get rid of the money than of the wood, is
+     of importance. Therefore, a state need never care very
+     anxiously for its supplies of money. A rich nation will
+     never suffer from a want of money. (Discourses upon Trade,
+     1691, pp. 11, 17.) According to _Berkeley_ (Querist, 1735,
+     pp. 566 ff.), there is no greater error than to measure the
+     wealth of a nation by its gold and silver. It is to the
+     interest of a people to keep their money or to send it off
+     according as its industry is thereby promoted. _Quesnay_
+     declares it to be impossible that the exports of a country
+     should be permanently greater than its imports: _tout achat
+     est vente et toute vente est achat_.
+
+     _Adam Smith_ (W. of N., IV, 1) compares the Spanish
+     discoverers who inquired on every island, first of all, for
+     gold, to the Mongolians, whom _Rubruquis_ (c. 32) was
+     obliged to give information to concerning the cattle of
+     France: "of the two, perhaps the Tartar nation was the
+     nearest to the truth." Precious-metal-money may be even more
+     easily dispensed with than most other commodities, since, in
+     case of necessity, it can, by reason of its greater
+     transportability be readily obtained from without, and can
+     also be supplied by exchange and by credit. "Money makes but
+     a small part of the national capital and always the most
+     unprofitable part of it.... Money necessarily runs after
+     goods, but goods do not always or necessarily run after
+     money." _J. B. Say_ calls the exportation of money more
+     advantageous than that of other commodities, because the
+     former is of use, not through its physical qualities, but
+     only through its value, and the value of the money which
+     remains behind correspondingly rises by reason of the
+     exportation. (Traité, I, ch. 17.) Compare especially
+     _Bastiat_, Maudit Argent, 1849.]
+
+     [Footnote A2-2-2: Against _Ganilh_, Théorie de l'Economie
+     politique, II, 200.]
+
+     [Footnote A2-2-3: Even _Mun_ had, in every balance of trade,
+     distinguished three persons who participated in it; the
+     merchant might lose when the nation in general gained, and
+     _vice versa_; the king, with his duties, always gained. (Ch.
+     7.) The British Merchant (p. 23) maintained even, that when
+     the merchant himself gains nothing and takes his
+     back-freight (_Rückfracht_) in money, his country gains the
+     whole amount thereof.]
+
+     [Footnote A2-2-4: "Every individual is continually exerting
+     himself to find out the most advantageous employment for
+     whatever capital he can command. It is his own advantage,
+     indeed, and not that of the society, which he has in view.
+     But the study of his own advantage, naturally, or rather
+     necessarily, leads him to prefer that employment which is
+     most advantageous to the society." (_Ad. Smith_, W. of N.,
+     IV, ch. 2.)]
+
+     [Footnote A2-2-5: For the reason that money, in
+     international trade, for the most part, loses its character
+     as money, and appears more as a commodity. Exhaustively in
+     _Adam Smith_ and _J. B. Say_, l. c. The English state paid,
+     during the French war of the Revolution, in subsidies to
+     foreign countries, £44,800,000; and yet, up to the end of
+     1797, imperial loans and the payments of private individuals
+     included, not as much as one million in cash went out of the
+     country. (_Rose_, Brief Examination into the Increase of the
+     Revenue of Great Britain, 1799.) When France paid the five
+     milliards to Germany, the plus value of English exportation
+     to Germany above the English importation thence rose from
+     274,000,000 (1869) to 478,000,000 (1872), and the increase
+     in the amount of French from 39,400,000 (1869) to
+     131,700,000 (1873). The entire German under-balance
+     (_Unterbilanz_), _Soetbeer_ (loc. cit.) estimates at
+     878,000,000 of marks.]
+
+     [Footnote A2-2-6: Emphasized especially by _David Hume_ who
+     calls attention to the seeking of its level by water.
+     (Discourses: On the Balance of Trade.) _J. B. Say_ speaks of
+     carriages, the increase of which over and above the need of
+     them must infallibly produce a reëxportation of them.
+     (Traité, I, ch. 17.)]
+
+     [Footnote A2-2-7: With all the severity of its export
+     prohibitions, Spain, for centuries, served as a medium to
+     conduct the streams of American silver to the other parts of
+     Europe. As to how Spain, during the last third of the 18th
+     century, was overflowed by copper money, see _Campomanes_,
+     Educación popular, IV, 272.]
+
+     [Footnote A2-2-8: _von. Schröder_, F. Schatz- und
+     Rentkammer, XXVII, has a very ingenuous faith in the rate of
+     exchange and a tariff-record (_Zollregister_); while _Child_
+     had a much better insight into the defects of these two
+     criteria. (Disc. of Trade, p. 312 ff.) Compare _Steuart_,
+     Principles, III, 2, ch. 2.]
+
+     [Footnote A2-2-9: Compare § 199. It was a discovery of
+     _Locke's_, that borrowing from foreign countries was
+     advantageous in all those instances in which the inland
+     borrower earned more than the amount of his interest by
+     means of the loan. (Considerations, p. 9.)]
+
+     [Footnote A2-2-10: _Ségur_, Mémoires, II, 298, tells how the
+     Russian officers of custom were bribed by English merchants
+     to represent the Russian imports from England _under_, and
+     the exports to England _above_ the true value. In addition
+     to this, smuggling was carried on!]
+
+     [Footnote A2-2-11: _J. B. Say_ calculates from the English
+     tariff-record (_Zollregister_), from the beginning of the
+     18th century to 1798, an excess of exports over imports of
+     £347,000,000; and yet the highest estimates of the amount of
+     money actually in England, according to _Pitt_ and _Price_,
+     gave only £47,000,000. (Traité, I, IV, 17.) The Russian
+     lists of exports and imports from 1742 to 1797, show a
+     favorable balance of 250,000,000 rubles; to which must be
+     added 88,000,000 rubles taken from the mines during the same
+     time. But it is notorious that the stores of money
+     diminished. _Storch_, Gemälde des russischen Reiches, XI,
+     12.]
+
+     [Footnote A2-2-12: Manuel, 310. _F. B. W. Herrmann_ (Münch.
+     gelehrte Anz. XXV, 540) also declares the whole theory of
+     the balance of trade wrong. According to _Brauner_, Was sind
+     Maut und Zollanstalten (1816), 51, it is "a mere fancy."]
+
+     [Footnote A2-2-13: Recognized even by _Ch. Davenant_, On the
+     probable methods of making a People Gainers in the Balance
+     of Trade (Works, II, p. 11).]
+
+
+SECTION III.
+
+FURTHER REACTION AGAINST THE MERCANTILE SYSTEM.
+
+Simultaneously with this opposition, the theory of the international
+balance of trade underwent important refinements, a new and improved
+edition, so to speak, of old Colbertism.[A2-3-1] Each school is wont to
+estimate the favorableness of the balance according to the preponderance
+of that which they consider the most important element in a nation's
+economy. Thus the population-enthusiasts, after the middle of the 18th
+century, distinguished the "balance of advantage" from the "merely
+numerical:" the former is favorable to the country which, by means of
+its exports, employs and feeds the greatest number of men; the latter to
+the country with a preponderating importation of money. And they call
+the former much more important than the latter.[A2-3-2] The great
+advance which this view constitutes over the old system lies chiefly in
+two points: that the number and employment of men are evidently, so far
+as the whole national economy and national life are concerned, a much
+more important element than the quantity of money in a country; and
+further, that now, at least, the possibility of a simultaneous profit on
+both sides is admitted.[A2-3-3] The best writer in this direction, Jos.
+Tucker, is among the great-grand-parents of the Manchester theory of
+to-day!
+
+A further advance was made by men who introduced the higher notions of
+nationality and of the stages of civilization into the theory of
+international trade. Thus, at about the same time, the socialistic J. G.
+Fichte, with his shut-in commercial state, and the romantic reactionary,
+Ad. Müller, with his organic whole of national economy.[A2-3-4] Finally,
+Fr. List,[A2-3-5] with his "National system of Political Economy," and
+his severe subordination of the mere "agricultural state" to the
+"agricultural, manufacturing and commercial state," acknowledges the
+favorableness of the balance in the nation which by means of the
+exportation of manufactured articles, the importation of the means of
+subsistence and of articles to be manufactured, demonstrates and
+promotes its higher stage of civilization.[A2-3-6]
+
+     [Footnote A2-3-1: Compare _Mengotti_: Il Colbertismo (prize
+     essay of the Georgofili at Florence), 1791. If, with _H.
+     Leo_, we were to designate the whole period from the issue
+     of the struggles of the Reformation to the preparations of
+     the French Revolution as the "age of the mercantile system,"
+     _Colbert_ would be a very appropriate type of it.]
+
+     [Footnote A2-3-2: Compare § 254. Here belong _Forbonnais,
+     Necker, Tucker_ (Important Questions, IV, 11; V, 5; VII, 4;
+     VIII, 5. Four Tracts, 1774, I, p. 36); _Justi_ in his middle
+     period (_Roscher_, Gesch. der N. O. in Deutschland, I, 451
+     ff.); but especially _Sonnenfels_ (politische Abhandlungen,
+     1777, Nr. 1), who sees the best sign of a favorable balance
+     in the increase of population. (Grundsätze, II, 333.) When
+     Austria, for 2,500,000, purchases diamonds _of_ Portugal,
+     and sells Portugal linen to the amount of 2,000,000, it has
+     the numerical balance against it, but obtains the "balance
+     of advantage." (II, 329 seq.) With an admixture of
+     physiocratism, this doctrine appears in _Cantillon_, Nature
+     du Commerce, 1755, p. 298 ff.; with an admixture of free
+     trade, in _Büsch_, Geldumlanf, V, 12.]
+
+     [Footnote A2-3-3: _Justi_, Chimäre des Gleichgewichts der
+     Handlung und Schiffahrt (1759), supposes a gain on both
+     sides in all commerce between nations. Hence, no nation can
+     attain to a flourishing trade in any way except it be to the
+     advantage of those with which it has to do. (p. 14 ff., 43.)
+     Here, it may be presumed, _Hume's_ Essay, On the Jealousy of
+     Trade, exercised an influence. _Sonnenfels_ distinguishes,
+     in foreign trade, five grades of advantage: 1, most
+     advantageous, when finished commodities are exported and
+     cash money is imported; 2, when finished commodities are
+     exchanged for raw materials; 3, finished commodities against
+     finished commodities; 4, raw material against raw material;
+     5, raw material against finished commodities. (Grundsätze,
+     II, 202.)]
+
+     [Footnote A2-3-4: It is as necessary that every nation
+     should constitute a separate commercial body as that it
+     should be a separate political and juridical body. The
+     person who asks: why should I not have commodities in all
+     the perfection in which they are made in foreign countries?
+     might as well ask: why am I not completely a foreigner?
+     (_Fichte_, Geschloss. Handelstaat, 1800: Werke, III, 476,
+     411.) _Ad. Müller_ compares universal freedom of trade to a
+     universal empire, which will ever remain a chimera.
+     (Elemente der Staatskunst, 1809, I, 283.)]
+
+     [Footnote A2-3-5: _List_ (Werke, II, 31 ff.) had, after
+     1818, recognized that a _passive_ balance for whole nations
+     was possible, if they were not able to cover their wants,
+     supplied from abroad and then consumed, by their income, but
+     were obliged to make inroads on their national capital.]
+
+     [Footnote A2-3-6: _Ch. Ganilh_, who expects a real
+     enrichment of a nation only from foreign trade (Dictionnaire
+     de l'E. P., 1826, p. 131), ascribes the most favorable
+     balance to the nation that exchanges dear labor against
+     cheap; that is, principally to a nation of tradesmen as
+     contradistinguished from a nation of agriculturists.
+     (Theorie de l'E. P., 1822, II, 239 ff.)]
+
+
+SECTION IV.
+
+PARTIAL TRUTH OF THE MERCANTILE SYSTEM.
+
+But even among the successors of Hume and Smith, a deeper insight into,
+so to speak, the physics of money and of international trade must have
+led to the recognition of many a truth which the mercantile system had,
+indeed, badly formulated, insufficiently proved, but which it had,
+nevertheless, an inkling of. And, indeed, how frequently it happens that
+the progress of science proceeds from one one-sidedness, through another
+opposed but higher one-sidedness, to the all-sidedness which knows no
+prejudice!
+
+A. Precious-metal-money is, indeed, a commodity, but of all commodities,
+the most current, the most many-sided in its utility, the most
+economically energetic, and at the same time of peculiarly great
+durability.[A2-4-1] Money-capital, far from being the least useful
+portion of a nation's capital, is rather one of its most important
+parts; and especially in the higher stages of civilization, where the
+division of labor has been most largely developed, is it peculiarly
+productive and indispensable.[A2-4-2] Here it is really more likely that
+the possessor of commodities may be wanting the wished for money, than
+that the possessor of money should be wanting in the wished for
+commodities. And, hence, the numerous half mystic expressions of the
+magical power of money, which have passed into literature from the
+common usage of the people, can be, by no means, considered mere errors.
+
+B. Just as little, can the impossibility of the preponderant importation
+of money for a long time, be asserted. Hume's rigid theory of a level,
+by no means, exactly corresponds with the reality. The precious metal
+which is, indeed, imported, but which does not subsequently enter into
+the circulation, need exert no influence whatever on the prices of
+commodities in general; and may, therefore, remain permanently in the
+country. Think only of the articles made of the precious metals, which
+minister to luxury,[A2-4-3] of buried private treasure, of the treasures
+of the state, which are idly stored up; as well as of a portion at least
+of most cash on hand.[A2-4-4] From the other side, also, the
+over-balance or under-balance (_Ueber-oder Unterbilanz_) of a country may
+continue, a very long time, when its internal trade with its money-need
+is, in the first case, an increasing, and in the last, a decreasing one.
+So far, the preponderance of the importation of money may be called a
+favorable sign and the preponderance of the exportation of money an
+unfavorable one. And the person who thinks that a permanent
+preponderance of exports or imports is not at all possible in the way of
+commerce, overlooks the possibility of a very extensive national
+indebtedness.[A2-4-5]
+
+C. But a distinction should be made between the _balance of payments_
+and the _balance of trade_ in the narrower sense of the
+expression.[A2-4-6] In the case of the latter, to be complete, it is
+necessary to carry to the credit side of the account: 1, The exports of
+commodities; 2, the profit made by parties at home by realizing on
+(_Realisierung_) the exports in foreign countries; 3, the freight-profit
+made by parties at home on exports and imports, as well as in foreign
+carrying trade (_Zwischenverkehr_); 4, the sale of inland ships in
+foreign countries; 5, premiums and compensation for damage on account of
+maritime insurance from foreign countries. On the debit side, on the
+other hand, the corresponding items when foreigners have received from
+the home country, as in the case of imports, etc. To obtain the general
+payment-balance, we have still, in addition, on the credit side: 1, The
+profit from home participation in enterprises in foreign countries and
+the transfers of capital originating therefrom; 2, the interest and
+repayments of money-capital loaned in foreign countries; 3, the sale of
+stocks (_Effecten_) to foreign countries as well as new loans to which
+the home country makes in foreign parts; 4, remittances from foreign
+countries to foreigners sojourning in the home country, and money
+brought with them by travelers and emigrants; 5, inheritances, pensions
+and extraordinary payments from foreign countries. Then, too, on the
+debit-side, belong the corresponding counter-items.[A2-4-7] If we, in
+this way, take a survey of the whole world, we shall perceive a treble
+current of the precious metals. The first and most regular goes, in long
+lines, from mining countries, over to the commercial countries of the
+world, and distributes the newly acquired gold and silver as commodities
+according to the wants of the coinage, of manufactures, etc. The second
+oscillates, as it were, in short waves from country to country, in order
+to adjust the _plus_ or _minus_ for the time being of payment-balances.
+Lastly, regular sudden currents, with slow subsequent counter-currents,
+when single economic districts require to make extraordinary drafts or
+shipments of the precious metals, by reason of bad harvests, war, a
+disturbed double standard, etc.
+
+D. Since international indebtedness has so much increased, precisely the
+richest nations may have the greatest regular excess of exports over
+imports; partly because of the great amount of capital, etc., which they
+possess in foreign countries; partly because of the great development of
+their system of credit in the interior, by means of which they find
+substitutes for so great a part of the metallic currency.[A2-4-8]
+
+     [Footnote A2-4-1: _Locke_, Civil Government (1691), § 49,
+     seq., emphasizes this durability of the value-preserving
+     metallic money, in opposition to the perishable articles of
+     consumption, as a principal element in the development of
+     private property and of economic civilization. But even
+     _Petty_ ascribes to the precious metals a higher quality as
+     wealth than to any other commodity, for the reason that they
+     are less perishable, and possess value always and
+     everywhere. Hence, he esteems foreign trade more highly than
+     inland trade, and would have those businesses which import
+     the precious metals protected more than others against
+     taxation. (Several Essays, 1682, p. 113, 126, 159.) _Adam
+     Smith_ also recognizes this, at least so far as intermediate
+     trade is concerned. (W. of N., IV, ch. 6.)]
+
+     [Footnote A2-4-2: Even _Rau_, in his additions to _Storch_
+     (1820), p. 397, concedes the peculiarly charming, vivifying
+     power, which money possesses to an extent greater than any
+     other commodity. Well distinguished whether the money-want
+     of a country is already fully satisfied or not. (Ansichten
+     der Volkswirthschaft, 1821, p. 157.) _Carey_ exaggerates
+     when he calls money the cause of the movement in society,
+     out of which force is produced, what coal is to the
+     locomotive, or food to the animal body (Principles of Social
+     Science, ch. XXXII, 5), or the only want of life for which
+     there is a universal demand. (Ch. XXXIII, 1.) But he rightly
+     calls it the "instrument of association." Excellent
+     demonstration, as to how, at the sudden outbreak of a war,
+     of a revolution, etc., all those who have money on hand,
+     even when they had previously obtained it while peace still
+     prevailed, in the form of a loan, are in an infinitely
+     better position than the owners of the otherwise most useful
+     commodities. (Ch. XXXVII, 12.) Earlier yet, _P. Kaufmann_
+     placed the "principal character of money" in this, that it
+     was "most perfect property (_Vermögen_);" and he calls its
+     quality as a commodity, philosophically considered, in
+     question; and judges the balance of trade according to this,
+     that in commodities, interest-yielding as well as dead
+     capital is exported, but in money-capital, which is always
+     gain-engendering. (Untersuchungen im Gebiete der politischen
+     Oekonomie, 1829, I, 4, 74, 80.)]
+
+     [Footnote A2-4-3: In England, _Patterson_ estimates the
+     regular additional importation (_Mehreinfuhr_) of money at
+     from four to five millions sterling, of which the greater
+     part is devoted to purposes of luxury. (Statist. Jrl., 1870,
+     217.)]
+
+     [Footnote A2-4-4: _Fullarton's_ view (Regulation of
+     Currencies, 1844) suffers from exaggeration. _Knies_, Geld
+     and Credit, II, 285, very well shows that the "hoards" are
+     by no means mere idle stores, and that, therefore, their
+     void produced by the exportation of money must be soon
+     filled up again. _Adam Smith_, even, may be considered a
+     predecessor of _Fullarton_. (W. of N., ch. 2, p. 250, Bas.)]
+
+     [Footnote A2-4-5: Even _Büsch_ (Werke, XIII, 26) says that
+     the under-balance (_Unterbilanz_) of the Scotch vis-a-vis of
+     England was for a long time made up in two ways, by the
+     marriage of wealthy English heiresses and by Scotch
+     bankrupts. Thus the troops, who, in the 17th century, were
+     traded over to France, and in the 18th, to England by German
+     princes, brought the money, in part, back again, which was
+     exported by the unfavorable balance. According to _List_,
+     the exported metals, after they have risen in price with us,
+     flow back to us again; not, however, as exchangeable
+     articles, but in the form of a loan, by which it is made
+     possible for us to dispose of them again, and again to
+     receive them in this shape. (Werke, II, 37.)]
+
+     [Footnote A2-4-6: Thus even _J. Steuart_, Principles, IV, 2,
+     ch. 8.]
+
+     [Footnote A2-4-7: Compare _Soetbeer_ in _Hirth's_ Annalen
+     des deutschen Reiches, 1875, p. 731 ff.]
+
+     [Footnote A2-4-8: British Europe had from 1854 to 1863, a
+     yearly surplus amount (_Mehrbetrag_) of imports of at least
+     266, and at most 1190 millions of marks, in the average, 764
+     millions; from 1864 to 1873, of at least 802 millions, and
+     at most 1388 millions, an average of 1104 millions; whereas,
+     on the other hand, Australia, besides its great exportation
+     of gold, exhibits a great excess of exports of commodities
+     over imports. France, too, from 1867 to 1869, had attained
+     to an average surplus importation (_Mehreinfuhr_) of 211
+     million marks; which is related to the fact that, according
+     to _L. Say_, it received about from 600 to 700 million
+     francs a year in interest from foreign countries; and that
+     from 200 to 300 million francs were expended by foreigners,
+     etc., traveling in France. Similarly, in the case of
+     governing countries vis-a-vis of their dependencies; whence
+     even the old mercantilists entertained no doubt of the
+     enrichment of the former. Thus France, in 1787 ff., had a
+     yearly importation of 613 million livres, and an exportation
+     of 448 millions, because the colonies sent to France 150
+     millions more than they drew therefrom. (_Chaptal_, De
+     l'Industrie, Fr., I, 134.) Hungary, from 1831 to 1840, had a
+     yearly exportation of 46 million florins to Austria, and an
+     importation of only 30 millions. (_List_, Zollvereinsblatt.
+     1843, No. 49) Algiers drew from France in 1844 to the amount
+     of 83 million francs, and found a market there for only 8
+     millions (Moniteur), which no one will consider an
+     enrichment of France. The great preponderance of French
+     exports in 1831, 1848 and 1849, of Austrian, between 1874
+     and 1876, a sign of diminished purchasing capacity! When
+     England, in March, 1877, imported to the amount of
+     £35,230,000, and exported to the amount of £16,921,000
+     (against £27,451,000 and £17,739,000 in March, 1876), the
+     Economist sees therein a sign that many outstanding debts
+     were called in.]
+
+
+SECTION V.
+
+THE ADVANTAGES OF INTERNATIONAL TRADE.
+
+The truth that no exportation is permanently possible without
+importation, and that, in international trade, also, both sides better
+their condition, was clear to the Italians in the fifteenth century, and
+in the sixteenth and seventeenth centuries to the Netherlanders.[A2-5-1]
+
+Every nation can, through its instrumentality, for the first time,
+acquire not only those commodities which nature entirely refuses to it,
+but such also which it can itself produce only at a great cost.[A2-5-2]
+And here it is not so much the absolute costs of production as the
+comparative which are decisive.[A2-5-3] The country A may be superior to
+the country B in all kinds of productiveness; but when this superiority
+for the group of commodities _x_ amounts to only 50 per cent., and for
+the group _y_, on the other hand, to 100 per cent., it is to the
+interest of A, which possesses only a limited quantity of the factors of
+production, to produce a surplus of the commodities _y_, and to exchange
+that surplus against what it wants of _x_.[A2-5-4] B, also, would
+willingly agree to this, even if it were not to get the commodities _y_
+entirely as cheap as A might supply them, but still decidedly cheaper
+than their production would cost in B itself. But, if both parties
+derive advantage from international trade, there is no necessity
+whatever that this advantage should be equally great on both sides. As
+in every struggle over prices, the gain here also is greatest on the
+side of the nation whose desire to hold fast to their own commodities is
+farthest from being outweighed by the want of the foreign commodity, and
+which, at the same time, employs most productively the equivalent
+received in imports in exchange for its exports.[A2-5-5] Yet, in
+estimating this productiveness, it is necessary to take the whole
+national life into consideration.[A2-5-6]
+
+The international distribution of the precious metals is subject to the
+same law. These, also, are procured most cheaply by the nation which,
+directly or indirectly (by the production of counter values wished for
+by the whole world), employs the most productive economic activity upon
+them, and at the same time (it may be by especially well developed
+credit), is in the least urgent need of them.[A2-5-7] Therefore, on the
+whole, their value in exchange is wont to be lowest among the richest
+and most highly cultivated nations.[A2-5-8] Such a relative cheapness of
+gold and silver is not only a symptom of economic power, but considering
+the preëminent energy of these very commodities, at the same time, a
+means to procure most foreign commodities with a smaller expenditure of
+one's own forces.[A2-5-9] Hence, a great change in the distribution,
+hitherto usual, of the precious metals, produced, possibly, by great
+advances made in production here, or by an increase in consumption
+there, or by means of commercial prohibitions, etc., may be just as
+advantageous to the country which receives more as hurtful for the
+country which pays more;[A2-5-10] and both, all the more as the
+revolution in prices enhances the most productive elements of the nation
+there, and here the most unproductive.[A2-5-11] Hence, even when it
+cannot, in general, be said that one branch of commerce, carried on in a
+normal manner, should necessarily remain behind another in economic
+productiveness, those which have nothing to fear from a disturbance of
+their balance by the measures of foreign states are distinguished by the
+greatest security, and those are capable of the greatest growth which
+exchange articles to be manufactured (_Fabrikanden_), and the means of
+subsistence against ordinary manufactured articles.[A2-5-12] [A2-5-13]
+
+     [Footnote A2-5-1: _M. Sanudo_, in Muratori Scriptores, XXII,
+     950 ff., and the Netherland decree of February 3, 1501, in
+     the Journal des Economistes, XIII, 304. Then, _Salmasins_,
+     de Usuris (1638), p. 197. _Child_, _Becher_ and _Temple_ had
+     all made their studies in Holland. Compare, besides, even
+     _Plato_, De Rep., II, 371.]
+
+     [Footnote A2-5-2: _J. S. Mill_ rightly calls it a remnant of
+     the mercantile system that _Adam Smith_ still saw the
+     principal utility of foreign trade in the market for the
+     home production which is thereby increased. But this utility
+     is to be looked for not so much in what is exported as in
+     what is imported. (Principles, II, ch. 17, 4.)]
+
+     [Footnote A2-5-3: Compare _v. Mangoldt_, Grundriss der V. W.
+     L., 185 ff. By the English, the discovery of this truth is
+     attributed to _Ricardo_, Principles, ch. 7. Compare the
+     further development in _J. Mill_, Elements (1821), III, 4,
+     13 seq.; _Torrens_, The Budget (1844) and _J. S. Mill_,
+     Essays on some unsettled Principles of Political Economy
+     (1844), No. 1, and Principles, III, ch. 18 ff. But even
+     _Jacob_, Grundsätze der Polizeigesetzgebung (1809, p. 546
+     ff.), was acquainted with the truth that generally both
+     sides gained, but the one party, possibly more than the
+     other. According to _Lotz_, Revision (1811), I, 161, the
+     gain and loss of each party rises and falls in proportion to
+     the difference between the degrees of value which each
+     party, so far as he is himself concerned, attaches to the
+     goods given and the goods received. And even _Cantillon_,
+     Nature du Commerce (1155), p. 226, 369 ff., had a
+     presentiment of the reason why countries having a low value
+     in exchange of money can continue notwithstanding to sell in
+     foreign countries. And so, too, _Hume_, Essays (1752), On
+     Interest, who, without looking through the spectacles of the
+     mercantile system, perceived that countries with a
+     flourishing trade must necessarily draw much gold and silver
+     to themselves. Recently, _Cairnes_ has shown by practical
+     examples that Australia imports Irish butter and Norwegian
+     wood, and the Barbadians meat and flour from New York,
+     although both might themselves produce such articles
+     cheaper. (Essays, etc., 1873. Leading Principles, 1874, p.
+     379.)]
+
+     [Footnote A2-5-4: Thus a Kaulbach might more expertly
+     ornament his own door and window frames than an ordinary
+     room-painter, but does not do so, because he can employ his
+     time to better advantage.]
+
+     [Footnote A2-5-5: Even _Law_, Money and Trade, p. 31, was of
+     opinion, that when a nation consumes its imports which are
+     greater than its exports, it grows poorer, not in
+     consequence of the importation, but of the consumption.
+     _Quesnay_ calls attention to the _plus on moins de profit
+     qui résulte des marchandises mêmes que l'on a vendues et de
+     celles que l'on a achetées. Souvent la perte est pour la
+     nation qui reçoit un surplus en argent, et cette perte se
+     trouve au préjudice de la distribution et de réproduction
+     des revenus_. (Max. génér., 24.)]
+
+     [Footnote A2-5-6: _Rau_ distinguishes principally whether
+     importation brings articles of luxury or means of
+     acquisition (_Erwerbstamm_) into the country. (Ansichten der
+     V. W., 163.) Similarly, _de Cazcaux_, Eléments d'Economie
+     privée et publique (1825), p. 188 ff. _Schmitthenner_, Zwölf
+     Bücher vom Staate (1839), I, 497. "A favorable balance of
+     trade does not make a people richer because they receive the
+     metals for other values, but because they produce and sell
+     more than they purchase and consume; the result of which
+     naturally is that the difference must consist in values
+     capable of being capitalized." Kaufmann draws a distinction
+     according as the imported goods come into the country in the
+     form of dead or interest-bearing capital. He illustrates his
+     view by the case of a peasant who sells his seed-corn in
+     order to purchase a finer hat with the proceeds.
+     (Untersuchungen, I, 96, 81 seq.)]
+
+     [Footnote A2-5-7: International trade makes imported
+     commodities cheaper and exported commodities dearer, but the
+     aggregate of consumers gain more in the former case than
+     they lose in the latter, because they now enjoy the
+     blessings of the international division of labor. But, even
+     with this general enrichment, single classes of the people,
+     and even the majority, may have to suffer; as, for instance,
+     when in the exchange of corn against iron, the cheapening of
+     the iron profits the people less than the consequent
+     dearness of corn injures them. (_Fawcett_, Manual, 391.)]
+
+     [Footnote A2-5-8: "Gold and silver are by the competition of
+     commerce distributed in such proportions amongst the
+     different countries of the world as to accommodate
+     themselves to the natural traffic which would take place if
+     no such metals existed and the trade between countries were
+     purely a trade of barter." (_Ricardo_, Principles, ch. 7.)
+     In most direct opposition to the mercantile system, he
+     represents the distribution of the precious metals to be not
+     the cause but the effect of national wealth. A nation
+     rapidly growing in wealth will obtain and keep a larger
+     quota of the general supply of gold and silver. (The high
+     Price of Bullion, 1810.) On the other hand, it depends on
+     the one-sided abstraction with which _Ricardo_ loves to
+     pursue certain assumptions, that every exportation of money
+     is made to signify a peculiar cheapness of money, and _vice
+     versa_. (Opposed by _Malthus_, Edinb. Rev., Febr., 1811.)
+     _Carey's_ frequently repeated assertion, that gold and
+     silver always flow towards those markets where they are
+     cheapest (Principles of S. Science, I, 150, and passim),
+     confounds cause and effect.]
+
+     [Footnote A2-5-9: Compare § 126, and even _Kaufmann_,
+     Untersuchungen, I, 75 seq.]
+
+     [Footnote A2-5-10: Let us suppose that, hitherto, the
+     English had supplied their demand for wine from France, and
+     paid therefor in commodities made of steel; and that now
+     France prohibits the importation of the latter and requires
+     gold instead. If the English take this gold out of their own
+     circulation, the value in exchange of the gold which remains
+     to them rises; the prices of all commodities fall, state
+     debts and private debts become more oppressive, etc. If, to
+     avoid this, they send their steel wares, which France has
+     rejected, to California, to obtain gold there in exchange,
+     they find that California has as much of steel wares as it
+     requires, and that it can be induced to extend its
+     consumption of them only by a corresponding lowering of
+     their price. But if, on the other hand, the gold which has
+     flowed towards France has produced a rise in the price of
+     commodities, and a decrease in the exportation of
+     commodities; and has then flowed out of the country, to
+     Germany for instance; England may in consequence be placed
+     in a position to effect its payments for French wine with
+     the gold which its manufactured articles have been exchanged
+     against in Germany. But all this always supposes that the
+     prices of commodities have fallen in England and risen in
+     other countries; that is, a changed and, so far as England
+     is concerned, an unfavorable distribution of the precious
+     metals--which is found in connection with a relatively
+     decreased productiveness of English labor. The English cost
+     of production may yet continue to be covered,
+     notwithstanding; but, when it has been diminished by a
+     lowering of wages, interest, etc., the national wealth
+     suffers in consequence. Compare _Torrens_, Budget, p. 50
+     ff., who precisely on this bases the greater security of
+     trade between the mother country and its colonies; and which
+     also found expression in the Peel reform plan of 1842 ff.
+     _Adam Smith_ approximated to this view when he ascribed a
+     more favorable balance to the country which paid for its
+     imports with its own instead of with foreign products. (W.
+     of N., IV, ch. 3-2, p. 329, Bas.)]
+
+     [Footnote A2-5-11: Compare § 141. Strongly emphasized by
+     _List_, Werke II, 31, 36 seq. 48, 137.]
+
+     [Footnote A2-5-12: _Torrens_ imagines an English
+     manufacturer who employs raw material = 100 quarters of corn
+     and manufactured wares = 100 bales of cloth (the quarter of
+     corn and the bale of cloth supposed to be of equal value)
+     and whose product = 240 bales in value; and compares him
+     with an American agriculturist who, by means of the same
+     outlay of capital, harvests 240 quarters of corn. The trade
+     between them restores to each not only his outlay, with
+     twenty per cent. profit, but puts them in a position to
+     repeat their production on a larger scale. Only the quantity
+     of fertile land can put a limit to this growth; for corn and
+     cloth help produce each other, and the cheapness of the one
+     promotes the cheapness of the other, which can not, by any
+     means, be said, for instance, of the exchange between
+     vanilla and satin. (Budget, p. 268 ff.) Compare _Roscher_,
+     Colonien, p. 277 ff.]
+
+     [Footnote A2-5-13: The important controversy concerning
+     absenteeism may be answered in accordance with the
+     principles laid down in this chapter. The mercantile system
+     considered the rent sent to absentee landlords or
+     capitalists as a tribute paid to foreign countries; but
+     certainly improperly, as such rent is only the fruit of
+     their property which the owners might have consumed in their
+     own country, without giving any one a particle of it.
+     Besides, these rents are not sent in cash to foreign
+     countries, but in the form of those commodities to the
+     exportation of which the country is peculiarly well adapted.
+     Let us suppose, for instance, that the Irish absentees had
+     all left the country at once. The tradesmen, personal
+     servants, etc., to whom they had hitherto furnished
+     employment would be greatly embarrassed to find a market for
+     their services, etc., but the producers of linen and meat
+     would have largely increased their exports, because an
+     entirely new demand for their products would have arisen
+     through the farmers of the absentees. The reverse would
+     necessarily happen if all absentees were suddenly called
+     home. Absenteeism which has lasted a long time injures no
+     one economically. Many, recently, laud it even, because it
+     permits every nation to devote their energies to the
+     branches of production for which they are best qualified:
+     Paris, for instance, to theatrical and luxury wares. The
+     savings made by the English absentees on the continent,
+     where things are cheaper, turn eventually to the advantage
+     of England. (Thus, even _Petty_: Political Anatomy of
+     Ireland, p. 81 ff. _Foster_, On the Principle of Commercial
+     Exchanges between Great Britain and Ireland, 1804, p. 76 ff.
+     Edinb. Rev., 1827. _F. B. Hermann_, Staatswirthschaftl.
+     Untersuchungen, 355, 363 ff. _Per contra_, especially,
+     Discourse of Trade and Coyn, 1697, p. 99. _M. Prior_, List
+     of the Absenters of Ireland, 1730. _A. Young_; Tour in
+     Ireland, 1780. _Sir J. Sinclair_, Hist. of the Public
+     Revenue, 1804, III, 192 seq. _Lady Morgan_, On Absenteeism,
+     1825.) An aversion for absenteeism plays a chief part in all
+     Carey's writings. Thus, even in his Rate of Wages, 45 ff.
+
+     On medieval complaints concerning the absenteeism of
+     monasteries: _Bodmann_, Rheingauische Alterthümer, 751. From
+     a higher point of view, it cannot, indeed, be ignored that
+     absenteeism, largely developed, cripples the organic whole
+     of national life. The most highly cultured and influential
+     classes become estranged from their country, the great mass
+     remaining behind coarser, economic production more
+     one-sided, and all social contrasts more sharply defined.
+     Disturbances in Rome, when Diocletian removed his residence
+     from there; the decline of the Netherlands, very much
+     promoted by the discontent which Philip II.'s departure for
+     Spain produced. It was estimated, however, in 1697, that the
+     English absentees caused a gain to France of £200,000 per
+     annum. (Discourse of Trade, p. 93.) It is said that about
+     1833, 80,000 Englishmen traveled on the continent, and
+     consumed £12,000,000 there. (_Rau._) According to
+     _Brückner_, the Russians who travel in foreign countries
+     take 20,000,000 rubles a year out of the country with them.
+     (_Hildebrand's_ Jahrb., 1863, 59.) That the countries which
+     receive these travelers receive no very great benefit from
+     them, see in _J. B. Say_, Cours pratique. In Paris, there
+     were, even in 1797, so many strangers who so enhanced the
+     rents paid for _maisons garnies_ that their expulsion was
+     proposed. (_A. Schmidt_, Pariser Zustände, III, 78.)]
+
+
+SECTION VI.
+
+INTERNATIONAL COMMERCIAL TREATIES.
+
+All international commercial treaties have this object in common: to
+moderate the impediments to trade which arise from the differences and
+even from the enmities of states. According to time and character, they
+fall into three groups:
+
+A. _Medieval_, where a barbarous state for the first time promises
+foreign merchants in general legal security, without which regular trade
+is unthinkable. Such treaties, where their provisions are not a matter
+of course, must be certainly considered as a salutary advance; and they
+may, under certain circumstances, be necessary even to-day.[A2-6-1]
+
+B. _Mercantilistic_ treaties, which close, perhaps, even a bloody
+commercial war carried on against a rival,[A2-6-2] or which by a closer
+connection with a state, whose rivalry is not so much feared, are
+intended to moderate the worst consequences of a general
+seclusion.[A2-6-3] Consistently carried out, and without any regard for
+consequences, the mercantile system really means a war of each state
+against all others, and it is no mere accident that after the cessation
+of the wars of religion (1648) and before the beginning of the war of
+the French revolution (1792), commercial wars occupy the foreground.
+Such economic alliances as are entered into in these treaties generally
+unite states which, by reason of the very different nature of their land
+and their different national culture, are adapted to production of very
+different kinds, and which, at the same time, have a common political
+interest.[A2-6-4] Each party here agrees with the other to give a
+preference to its subjects in trade, to not exceed certain maxima of
+duties, etc.[A2-6-5]
+
+The art of the negotiator was employed to overreach the other
+contractant in relation to the balance of trade.[A2-6-6] It was
+considered a special matter of congratulation to induce a less highly
+developed nation to abandon the traditional means employed to
+artificially elevate its industries. Hence it is, that such friendly
+treaties frequently contained the germs of the bitterest enmity.[A2-6-7]
+A popular remnant of this second group has been noticeable even in
+recent times, when in diplomatic negotiations concerning the reciprocal
+modification of duties, it was considered an overreaching and even as an
+outrage, in case one state made more "concessions" than it
+received:[A2-6-8] evidently, a confusion of the producers of the
+industry in question with the whole nation.
+
+C. _Free-trade_ treaties, intended to pave the way to the general
+freedom of trade.[A2-6-9] Two provisions especially are characteristic
+here: putting the subjects of the other party on an equal footing with
+those of the home country in what relates to the ship-duties,
+etc.;[A2-6-10] and the promise that the products of the other party, as
+regards import duties, shall be treated like those of the most favored
+nation.[A2-6-11] [A2-6-12] Whether this preparation for the universal
+freedom of trade is better made through the medium of an international
+treaty or of national legislation cannot be answered generally.[A2-6-13]
+Besides, in our day, the preference of one foreign nation would be
+easily evaded through the perfection of the modern means of
+communication.
+
+     [Footnote A2-6-1: The treaty of commerce between England and
+     Morocco, of the 9th of December, 1856, specially covenants
+     that the countrymen of a debtor shall not be held
+     responsible for debts in the creation of which they had no
+     part; that between England and Mexico, in 1826, guaranties,
+     among other things, that prices shall be freely determined
+     between buyers and sellers (art. 8), freedom from compulsory
+     loans, and from forced conscription for military duty (10),
+     the exercise of one's religion, and the inviolability of
+     graves (13); things which were not yet matters of course in
+     Mexico! Similar agreements between Spain and England in
+     1667; between Spain and Holland in 1648 and 1713; and even
+     in 1786, between England and France. Commercial treaties of
+     this kind are found very early and very frequently among the
+     ancients. Compare the Arcadian-Ægean in _Pausan_, VIII, 5,
+     5, which strongly recalls the Russo-English trade over
+     Archangel; further, Corp. Inscr. Gr., II, No. 1793, 2053 b
+     and c, 2056, 2447 b, 2675-78, 3523. That in the suburbs of
+     Jerusalem, from Solomon to Josias, places where Astarte etc.
+     was worshipped, were maintained unhindered, depends, it is
+     said, on commercial treaties with the Phœnicians,
+     Moabites, Ammonites. (_Movers_, Phönikier, III, 1, 121 ff.,
+     206 seq.)]
+
+     [Footnote A2-6-2: The two commercial treaties between Rome
+     and Carthage, 348 and 306 before Christ (_Polyb._, III, 22
+     ff.), are a clear proof that, in the interval, the
+     mercantile superiority of Carthage had increased. While the
+     Romans in 348 had still the right, under certain
+     limitations, to carry on trade in Sardinia and Africa, it
+     was in 306 entirely denied them.]
+
+     [Footnote A2-6-3: As guild-privileges make annual fairs
+     (_Jahrmärkte_) and governmental fixed prices necessary.]
+
+     [Footnote A2-6-4: Commercial treaty of the Venetians with
+     the Latin empire in Constantinople, of the Genoese with the
+     Greek after its restoration; in which, for instance, it was
+     promised to the former, that no citizen of a state at war
+     with Venice, should be permitted to sojourn in the Byzantine
+     empire; to the latter, that they alone of all foreigners
+     should enjoy freedom from taxation, and, with the Pisans,
+     navigate the Black Sea. As long as the Dutch were the
+     hereditary foes of Spain, they were much favored in France.
+     Commercial treaty of 1596, putting them on an equal footing
+     with the French; and which, considering their superiority at
+     the time, was necessarily of greater advantage to them than
+     to the French. _Colbert's_ step to destroy this
+     preponderance is coincident with the changed foreign policy.
+     (Richesse de Hollande, I, 127.) In the peace of Nijmegen,
+     again (art. 6 seq.), France tried to separate the Dutch from
+     their allies by the restoration of their former rights. In
+     the Spanish war of succession, France entered into a treaty
+     with the arch-duke, Charles, that a common commission should
+     fix the duties on English commodities, transfer the trade
+     with America to an English-Spanish company, but that the
+     French should be excluded therefrom. (_Ranke_, Franz.
+     Gesch., IV, 257.)]
+
+     [Footnote A2-6-5: The king of Bosporos had the rights of
+     citizenship in Athens, and enjoyed that of freedom from
+     taxation of his property there. In consideration of this,
+     the Athenians were released from his corn export duties of
+     1/30. (_Isocr._, Trapez., § 71. _Demosth._, Lept., p. 476
+     ff.) Commercial treaty of Justinian with Ethiopia: the
+     latter was to afford aid against the Persians, in return for
+     which Byzantium promised to supply its requirement of silk
+     no longer from Persia, but from Ethiopia. Commercial treaty
+     between Florence and England, 1490: England promised to
+     permit all the wool destined for Italy, except a small
+     quantity intended for Venice only, to go over Pisa, and as a
+     rule, not through foreigners. Florence, on the other hand,
+     was to receive English wool only through English ships.
+     (_Rymer_, Foedera, XII, 390 seq. Decima dei Fiorentini, II,
+     288 ff.)]
+
+     [Footnote A2-6-6: The difficulties of such negotiations
+     described by an experienced politician (probably _Eden_):
+     Historical and Political Remarks on the Tariff of the French
+     Treaty, 1787.]
+
+     [Footnote A2-6-7: The Methuen treaty (1703) was considered
+     an English master-piece, because Portugal had actually
+     exported a great deal of Brazilian gold to England. _Pombal_
+     said, in 1759: "Through unexampled stupidity, we permit
+     ourselves to be clothed, etc. England robs us every year, by
+     its industry, of the products of our mines.... A severe
+     prohibition of the exportation of gold from Portugal might
+     overthrow England." (_Schäfer_, Portug. Gesch., V, 494 ff.)
+     And yet the treaty only says that Portugal withdraws its
+     prohibition of English woolen wares, and restores the former
+     duties (15 per cent.), while England continues to permit
+     Portuguese wine to pay a duty 1/3 less than French wines!
+     Singular doctrine of _Adam Smith_ (W. of N., IV, ch. 6), and
+     still more of _McCulloch_ (Comm. Dict., v. Commercial
+     Treaties), that this commercial treaty was unfavorable to
+     England and very favorable to Portugal, although, in fact,
+     later a duty of only about 3 per cent. was imposed here on
+     English commodities. (_Büsch_, Werke, II, 62.) The
+     English-French commercial treaty of 1786 introduces in the
+     place of the former prohibition, duties of 10, 12 and 15 per
+     cent. for a number of industrial products. The French soon
+     came to believe that they had been taken advantage of here.
+     _A. Young_ found the desire very general in the north of
+     France, to get rid of the Eden treaty even through a war.
+     (Travels in France, I, 73.) Many of the _cahiers_ of the
+     third estate demand that no treaty of commerce should be
+     entered into without previous consultation with the
+     industries interested. (Acad. des Sc. morales et polit.,
+     1865, III, 214.) But in England, also, bitter complaints of
+     the opposition, to which Pitt replied, that commercial
+     treaties between agricultural and industrial countries
+     result to the advantage of the latter, independent of the
+     fact that England obtained a new market of 24,000,000, and
+     France of only 8,000,000 persons. Compare the extracts in
+     _Lauderdale_, Inquiry, App., 14. Forcade: Revue des deux
+     Mondes, 1843.]
+
+     [Footnote A2-6-8: Urged very largely in southern Germany
+     against the Prussian-French commercial treaty of 1862. But
+     is it really an "advantage" for France to have in the
+     interior more toiling (_Plackereien_) for inlanders as well
+     as for foreigners? Or that its consumers must pay high taxes
+     to the producers of certain wares?]
+
+     [Footnote A2-6-9: Seldom in antiquity. Compare, however,
+     Inscr. Gr., II, No. 256, and the reciprocal granting of the
+     rights of citizenship of Athens and Rhodes. (_Livy_, XXXI,
+     15.) Among the moderns, Flanders followed free-trade
+     principles similar to those followed later by Holland, at
+     the beginning of the fourteenth century; for instance, it
+     refused to gratify France by breaking off its trade with
+     Scotland. (_Rymer_, Foedera, II, 388.) Florence, in 1490,
+     promised the English, that in all treaties to be entered
+     into with others, it would permit it to enter. In the
+     French-Florentine commercial treaty of 1494, it is
+     stipulated with the Florentines that their ships _Gallica
+     esse intelligantur_ and their merchants _tanquam veri et
+     naturales Galli_ etc. (Decima, II, 308.) Swedish treaty with
+     Stralsund, 1574, that every privilege granted to a Baltic
+     city should also be, of itself, to the advantage of
+     Stralsund. Mutual equal treatment of subjects promised
+     between Portugal and England, 1642; Portugal and Holland,
+     1661; mutual treatment on the basis of the most favored
+     nation: between England and Portugal, 1642; Holland and
+     Spain, in the peace of Utrecht; Spain and Portugal, 1713;
+     Spain and Tuscany, 1731; England and Russia, 1734. But how
+     far such principles were removed from the beginning of the
+     eighteenth century is shown by the speech from the throne of
+     the 28th of January, 1727, of George I., in which the
+     Austro-Spanish treaty of 1725, that placed the subjects of
+     Austria in the colonial empire of Spain on an equal footing
+     with the English and Dutch, is described as a violation of
+     the dearest interests of England, and in which it is said
+     that England must defend its own unquestionable right
+     against the covenant entered into to violate public faith
+     and the most solemn treaties; that it might be that Spain
+     thought of subjecting England once more to the popish
+     pretender. Even in 1713, it was one of the principal points
+     in controversy between the Tories and Whigs, whether, in a
+     commercial treaty with France, the latter should be accorded
+     the rights of the most favored nations. Compare _Daniel
+     Defoe_, A Plan of the English Commerce, and _per contra_,
+     The British Merchant.]
+
+     [Footnote A2-6-10: English treaties with Prussia, 1824; the
+     Hanse cities, 1825; with Sweden, 1826; France, 1826 (England
+     removed the limitations still retained without compensation,
+     in 1839); Naples, 1845; Sardinia, Holland and Belgium, 1851.
+     Prussian treaties with Russia, 1825; Naples, 1847; Holland,
+     1851. French with Bolivia, 1834; Holland, 1846 (in which
+     reciprocity is extended even to the navigation of rivers);
+     Denmark, 1842; Venezuela, Equador and Sardinia, 1843; Russia
+     and Chili, 1846; Belgium, 1849; and Portugal, 1853.]
+
+     [Footnote A2-6-11: Marking an epoch in this respect are the
+     treaties of the United States with Holland (Oct. 8, 1782),
+     Sweden (April 3, 1783), Frederick the Great (Sept. 10,
+     1785), and England (Oct. 28, 1795); recently that entered
+     into by Napoleon III. with England in 1860, and with the
+     Zollverein in 1862.]
+
+     [Footnote A2-6-12: The expression "most favored" is not
+     always strictly construed. Thus, for instance, France
+     granted the right of coast-sailing proper (_cabotage_) only
+     to Spain. States frequently promise only: _s'appliquer
+     réciproquement toute faveur en matière de commerce et de
+     navigation qu'ils accorderaient à un autre état gratuitement
+     ou avec compensation_.]
+
+     [Footnote A2-6-13: Napoleon III. had a preference for
+     commercial treaties, because these, as acts of foreign
+     politics, lay in the plenitude of his imperial power (art. 6
+     of the constitution of 1852; senatus consultum of Dec. 23,
+     1852), while in legislation, his free trade tendencies were
+     limited by popular representation. And so also Prussia, by
+     its commercial treaty with him (1862), was actually freed
+     from the hindrances which the free veto of the
+     Zollverein-conferences would have opposed to its reform.
+     Opposition to the treaty-form because too binding.
+     (_Chaptal_, De l'Industrie Française, II, 242 ff.) The
+     free-trade party lauds it precisely on this account. See the
+     report of the Leipzig Chamber of Commerce for 1874-75, p.
+     41.]
+
+
+
+
+APPENDIX III.
+
+THE INDUSTRIAL PROTECTIVE SYSTEM AND INTERNATIONAL FREE TRADE.
+
+
+
+
+THE INDUSTRIAL PROTECTIVE SYSTEM AND INTERNATIONAL FREE TRADE.
+
+
+SECTION I.
+
+PROXIMATE ECONOMIC EFFECTS OF THE INDUSTRIAL PROTECTIVE SYSTEM.
+
+That the principal measures which the mercantile system recommended,
+artificially to increase a nation's wealth, could not produce the
+immediate effects expected of them, has been shown, especially from the
+natural history of money. Their proximate economic consequences
+necessarily consisted in this, that they diverted the existing
+productive forces of the nation from their places of application
+(_Verwendungsplätzen_) hitherto, to others which the government thought
+more advantageous.
+
+A. If home producers are in a condition to offer their commodities as
+good and as cheap as foreigners, all protection of the former by import
+duties, or even by prohibitions, is superfluous. The home producer has,
+as a rule, not only the advantage of the smaller cost of freight to the
+place of consumption,[A3-1-1] but that of being earlier informed,
+because of his proximity to consumers, of a change in their
+tastes.[A3-1-2] If, indeed, foreigners could supply us better and
+cheaper, and if they are kept from supplying our market only by
+artificial means, the state compels our consumers to a sacrifice of
+enjoyment;[A3-1-3] and such a sacrifice as is not fully compensated for
+by the profit made by the favored producers in any manner. The latter
+are generally soon compelled by home competition to arrange their prices
+in accordance with the rate of profit usual in the country. If they had
+no "protection" they would simply employ their productive forces in
+other branches of production; and in those in which they were equal or
+even superior to foreign competitors. By means of the products thus
+obtained, the people might then get in exchange all those commodities
+from foreign countries, the production of which it is, according to the
+laws of the division of labor, better to leave to foreign
+countries.[A3-1-4] Since one nation can lastingly pay another nation
+only with its own products, any limitation of imports must, under
+otherwise equal circumstances, be attended by a corresponding limitation
+of exports.[A3-1-5] Directly, therefore, these hindrances to importation
+produce no increase, but only a change in the direction (_Umlenkung_) of
+the national forces of capital and labor; an increase, only in case that
+foreign producers are thereby caused to transfer their productive forces
+within our limits;[A3-1-6] which may certainly be considered the
+greatest triumph of the protective system. Hence it is absurd when an
+equal extension of "protection" to all the branches of a nation's
+economy is demanded, as it is so frequently, in the name of justice.
+There is here no real protection whatever, analogous, for instance, to
+the protection afforded by the judge, but a favor which can be accorded
+to no one without injuring some one else.[A3-1-7]
+
+     [Footnote A3-1-1: It is of course different in the working
+     (_Verarbeitung_) of foreign raw material. Much also depends
+     on the situation of the industrial provinces. For instance,
+     manufactured articles can reach the interior of Spain and
+     the Western states of the American Union only after they
+     have passed the industrial coast-regions of both countries.
+     In Russia, on the other hand, the center is the principal
+     industrial region; and hence the coast may be actually
+     nearer to foreign than to home manufacturers. Similarly, in
+     France, at least for iron and coal. Compare _Adam Smith_, W.
+     of N., II, p. 279 Bas.]
+
+     [Footnote A3-1-2: People would, however, have to calculate
+     on the foolish luxury which despises the home product
+     because "it came from no great distance." World-supremacy of
+     Paris fashions! A manufacturer of excellent German
+     _Schaumwein_ (foaming wine) complained to me, in 1861, that,
+     after suffering heavy losses, he was compelled by his
+     customers to adopt French labels. Here, a wise prince may
+     have a favorable influence by his example. Louis XIV.
+     himself insisted, when his mother died, that the court
+     should use only French articles of mourning. _Gee_, Trade
+     and Navigation, p. 46. Augustus I., of Saxony, always wore
+     home cloth. (_Weisse_, Museum für Sächsische Geschichte, II,
+     2, 109.) Similar requirements by the prince of Orange (1749)
+     of all officials: Richesse de Hollande, II, 317. Dutch
+     executioners were dressed in calico. (Discourse of Trade,
+     Coyn, etc., 1697.) American popular stipulations not to wear
+     foreign articles of luxury. (_Ebeling_, Geschichte und
+     Erdbeschreibung, II, 481.) Rhode Island tailors placed the
+     working wages for home stuffs much lower than for foreign.
+     (II, 149.)]
+
+     [Footnote A3-1-3: _Prince Smith_ calls protective duties
+     scarcity-duties (_Theuerungszölle_). Because of this
+     increased dearness of the "protected" commodities, consumers
+     can no longer pay for as many other home commodities. If the
+     industry was previously in existence, the protective duty
+     imposed is wont to enhance the price, not only of the
+     foreign commodity, but also of the home commodity.]
+
+     [Footnote A3-1-4: If, for instance, the English had never
+     had a protective tariff on silk, nor the French a protective
+     tariff on iron, the former would probably get all the silk
+     commodities they want from France and pay for them in iron
+     ware. In this way, both nations would be well off in what
+     concerns the relation between the cost of production and the
+     satisfaction of wants. _Say_ calls protective duties a fight
+     against nature, in which we take pains to refuse a part of
+     the gifts which nature offers us. He leaves himself open to
+     the charge of exaggeration, however, when he compares a
+     nation that wants to produce everything itself to a
+     shoemaker who wanted to be tailor, carpenter, to build
+     houses and cultivate a farm also. Although no nation is
+     all-sided, yet every nation is a great deal more-sided than
+     an individual.]
+
+     [Footnote A3-1-5: Whoever keeps a people from purchasing in
+     the cheapest market, thereby prevents their selling in the
+     dearest. (_McCulloch._) It was no mere desire of revenge
+     that induced Holland, in the 17th century, to threaten the
+     Poles, in case the enhancement of their duties continued in
+     Danzig and Pillau, they would supply their corn-want from
+     Russia, (_Boxhorn_, Varii Tractat. polit., p. 240.) Thus the
+     tariff-measures adopted by France against the German cattle
+     trade and the Swedish iron trade promoted the growth of the
+     Crefeld silk manufacture, and lessened the exportation of
+     French wine to Sweden. When, in 1809, England heavily taxed
+     Norwegian wood, in favor of Canada, the Norwegians began,
+     instead of purchasing English manufactured articles, to
+     supply themselves from Hamburg, Altona and France. (_Blom_,
+     Norwegen, I, 257.)]
+
+     [Footnote A3-1-6: _Fr. List_ assumed altogether too
+     unconditionally such an effect from import duties to be the
+     rule. The more developed the self-confidence of a nation is,
+     the more vigorous the life of its industries, the more
+     many-sided the commerce of its people; the less disposed are
+     its industrial classes to give up their home and carry their
+     market with them. But, for instance, Swiss labor and, still
+     more, Swiss capital have been induced by the tariff-systems
+     of the great neighboring countries to settle in Mühlhausen,
+     Baden and Voralberg, or at least to establish branch houses
+     in these places. Similarly, Neumark cloth makers were
+     induced to emigrate to Russia, and Nürnberg industrial
+     workmen to Austria (_Roth_, Geschichte des Nürnbergen
+     Handels, II, 170) etc. Compare _Burkhardt_, c. Basel, I, 74;
+     _Böhmert_, Arbeiterverhältnisse der Schweiz, I, 16 seq.; II,
+     17.]
+
+     [Footnote A3-1-7: Compare _Alby_ in the Revue des deux
+     Mondes, Oct., 1869, and, _per contra_, Cairnes, Principles,
+     p. 458. The misfortunes of war or internal disquiet have
+     frequently driven away the best labor-forces of an old
+     industrial state, and thus powerfully promoted a young
+     protective system in the neighborhood. Reception of
+     Byzantine silk-weavers in Venice, during the crusade to
+     Constantinople, of Flemish wool-weavers in England, under
+     Edward III. (_Rymer_, Foedera, III, 1, 23) and Elizabeth; of
+     Huguenot industrial workmen under the great elector, etc.
+     The growth of the Zurich silk industry by the settlement
+     there of expelled Protestants from Locarno.
+
+     England, indeed, had, up to 1849, protective duties both for
+     industry and agriculture. But the protective duties were of
+     no real importance, except in the case of the latter,
+     because the greater part of England's industrial products
+     were superior to foreign competition without the help of
+     protective duties. Something similar is true of most duties
+     on raw material in the United States.]
+
+
+SECTION II.
+
+EFFECT OF EXPORT DUTIES, etc., ON RAW MATERIAL.--EXPORT PREMIUMS.
+
+B. Export duties on raw material, and prohibitions of the exportation of
+raw material, lower the price of such articles, by preventing the
+competition of foreign buyers.[A3-2-1] To this loss of the producers of
+raw material, there is, in the long run, no corresponding gain to the
+manufacturers. Rather will there be, when freedom of competition
+prevails at home, an increased flow of the forces of production to the
+favored branch, because of its rate of profit, which is greater than
+that usual in the country, and a corresponding flow from the injured
+branch, until such time as the level of profit usual in the country is
+restored.[A3-2-2] Hence here, also, the final result is only a change of
+the direction, not a direct increase of the productive forces.[A3-2-3]
+
+C. In the case of export-premiums, it is necessary to distinguish
+between the mere refunding back of the taxes which have been paid on the
+assumption of a home consumption which has not taken place (drawbacks),
+and the actual making of donations because of the exportation of goods
+(bounties). The former produces no result except to maintain the
+possibility of a production which would otherwise have been prevented by
+the tax. The latter, on the contrary, compels all those who are subject
+to taxation to make a donation to one particular class of persons
+engaged in industry.[A3-2-4] Moreover, all consumers are compelled to
+pay a higher price for the commodity to the extent that the market
+price, inclusive of the premium to be obtained abroad, is higher than
+the home market price hitherto usual. But, as the cost of production has
+not increased, this profit of the producers, which is greater than that
+usual in the country, must induce other productive forces to enter into
+the favored branch; so that here, also, the lasting result is not a
+higher rate of profit of the individuals engaged in the industry, but an
+extension of the industry itself. Foreign countries chiefly reap the
+greatest advantage from this course, since they obtain the commodities
+at gift-prices.[A3-2-5] The premiums paid, not for exportation, but for
+the production of a commodity, have a meaning akin to this.[A3-2-6]
+Either the industry could not maintain itself without premiums, in which
+case the state encourages a losing production,--and the more there is
+produced the greater is the loss to the national economy;--or the
+industry might exist without the payment of premiums, and then the newly
+increased profit would lead to an extension of the industry. Exportation
+would follow, and all the effects of export-premiums appear.[A3-2-7]
+
+     [Footnote A3-2-1: Rags in Silesia dearer than in Bohemia by
+     the full amount of the Austrian export duties (Gutachten
+     über die Erneuerung der Handelsverträge; 1876, p. 9). When
+     the English export-prohibitions were extended to Scotland,
+     the price of Scotch wool fell about 50 per cent. (_A.
+     Smith_, W. of N., IV, ch. 8.) In the case of foreign raw
+     material, the reëxportation of which is prevented, the
+     object of such prohibitions may be largely frustrated. When
+     England, to promote its dyeing industries, left the
+     importation of colors entirely free, but allowed their
+     exportation only under heavy duties (8 George I., c. 15),
+     the importers provided the market always with somewhat less
+     than the amount required, and thus raised the price.]
+
+     [Footnote A3-2-2: Export hindrances have been continued
+     longest in favor of manufacturing industries
+     (_Verarbeitungsindustrie_), in the case of such commodities
+     as are not intentionally produced, such as rags, ashes,
+     etc., but which are collected only as the remains of some
+     other kind of production or consumption. "Negative
+     production," according to _Stilling_, Grundsätze der
+     Staatswirthschaft, 803, because it is desirable to produce
+     as little as possible of such raw material. But the dearer
+     rags, for instance, are, the more carefully are they
+     collected.]
+
+     [Footnote A3-2-3: When the French prohibition of the
+     exportation of hemp was extended to Alsace, its production
+     decreased from 60,000 to 40,000 cwt. (_Schwerz_,
+     Landwirthschaft des Nieder-Elsasses, 378 ff.) Frederick the
+     Great soon carried his prohibition of the exportation of raw
+     wool to such an extent as to prohibit the exportation even
+     of unshorn sheep, and to punish the dropping of a sheepfold
+     by a fine of 1,000 ducats. (Preuss. Gesch. Friedrichs III.,
+     42.) Here, also, belong prohibitions relating to the
+     exportation of corn, which force considerable capital, etc.
+     into industry. The prohibition of the exportation of corn in
+     England, and the permitting of the exportation of cattle,
+     wool, etc., was one of the principal causes why there were
+     so many complaints at the time of the turning of land used
+     for tillage into pasturage-land. When, in 1666, the
+     exportation of Irish cattle to England was prohibited, it
+     produced, at the outset, great need in Ireland, but
+     afterwards a flourishing condition of Irish industry.
+     (_Hume_, History of England, ch. 64.)]
+
+     [Footnote A3-2-4: The effect must be very much the same when
+     the right of buying up all the raw material of a certain
+     district is granted to one factory exclusively. The elector,
+     Augustus of Saxony, did this frequently. Compare _Falke_,
+     Gesch. des Kurf., A. v. S., 190-212, 345.]
+
+     [Footnote A3-2-5: As to how, by means of German drawbacks
+     (_Rückzölle_) it is possible for beet-sugar to be offered at
+     a cheaper rate in Brazil than home cane-sugar, see
+     _Wappäus_, Brazilien, 1830. The French export-premiums for
+     sugar amounted, in 1856, to over 8,000,000 francs. Frenchmen
+     subject to taxation were obliged to pay this amount, and
+     thus add to the already increasing price which they had to
+     pay for that article. (Journ. des Econom., Juill., 1857.) In
+     England, in 1742, the export-premiums for linen were
+     defrayed by enhanced entry-duties on cambrics. (15 and 16
+     George II., c. 29.)]
+
+     [Footnote A3-2-6: As to how English export-premiums
+     sometimes made English commodities cheaper in Germany than
+     in England, see _Büsch_, Werke, XIII, 82. There are, indeed,
+     gifts which may ruin the receiver of them, as, for instance,
+     when one gets his rival intoxicated at his expense before
+     the decisive solicitation. _Timeo Danaos et dona ferentes_
+     (cited by Fox and Burke against the Eden treaty: _Hansard_,
+     Parl. History, 1787, Jan. p. 402, 488).]
+
+     [Footnote A3-2-7: It is said that Maria Theresa paid
+     1,500,000 florins a year for this purpose. (_Sonnenfels_,
+     Grundsätze, II, p. 179.) England, between 1806 and 1813,
+     altogether, £6,512,170. _Colquhoun_, Wohlstand, Macht, etc.,
+     Tieck's translation, I, 251.]
+
+
+SECTION III.
+
+THE FREE-TRADE SCHOOL.
+
+From what has been said, we may understand why the so-called free-trade
+school, with its atomistic over-valuation of the individual and the
+moment, rejects all those measures of the industrial protective
+system.[A3-3-1] As such measures really injure the oppressed portions of
+the people more than they help the favored classes, their introduction,
+it is said, uniformly depends on this, that single classes of producers
+understand their private interests better than others, and are better
+organized than other producers and especially better than consumers, to
+take care of their interests.[A3-3-2] Adam Smith approves import
+hindrances for the purpose of artificially promoting an industry only in
+two cases:
+
+A. When military safety demands it. Hence he calls the English
+navigation act, that great prohibitive and protective law intended to
+advance the merchant marine, the wisest perhaps of all English
+commercial regulations, although he clearly saw that it compelled
+England to sell her own commodities cheaper and buy foreign commodities
+dearer.[A3-3-3]
+
+B. When the import duty is no more than sufficient to balance the tax
+imposed on the corresponding home product. Smith rightly remarks that a
+universally heavier taxation by the home country, but which affected all
+branches of its production equally, operated like diminished natural
+fertility, and hence does not make any equalizing tax for foreign trade
+necessary.
+
+The person who has only a modest opinion of the power of his own reason,
+and therefore a just one of the reason of other men and other times,
+will not believe that a system like the industrial protective system
+which the greatest theorizers and practitioners favored for centuries,
+and which governed all highly developed countries in certain periods of
+their national life, proceeded entirely from error and deception. It
+really served, in its own time, a great and regularly occurring want;
+and the error consisted only in this, that, partly through improper
+generalization by doctrinarians and partly by the avarice of the
+privileged classes and the inertia of statesmen, the conditioned and
+transitory was looked upon as something absolute.[A3-3-4]
+
+     [Footnote A3-3-1: _P. de la Court_, in his freedom of trade,
+     has in view not the interest of consumers--and least of all
+     of the whole world--but the interest of the commercial
+     class. Compare Tüb. Ztschr., 1862, p. 273. Similarly,
+     _Child_, Discourse of Trade, 1690; whereas _D. North_,
+     Discourses upon Trade (1690), may be called a free-trader in
+     the sense in which the expression is used to-day. No nation
+     has yet grown rich by state-measures; but peace, thrift and
+     freedom, and nothing else, procure wealth. (Postscr.)
+     _Davenant_ also zealously opposes the craving of a people to
+     produce everything themselves, to want only to sell, etc. He
+     considered very few laws on commerce a sign of a flourishing
+     condition of trade. (Works, I, 99, 104 ff.; V, 379 ff., 387
+     seq.) _Fénélon's_ antipathy for import and export duties in
+     Telémaque, a part of his general opposition to the _siècle
+     de Louis XIV_. The view of the Physiocrates (_La police du
+     commerce interiéur et extérieur la plus sure, la plus
+     exacte, la plus profitable à la nation et à l'état consiste
+     dans la pleine liberté de la concurrence_: _Quesnay_,
+     Maximes générales, No. 25) is directly connected with their
+     deepest fundamental notions of _produit net_ and _impôt
+     unique_. _Turgot_ vindicates the interests of workmen
+     against protective duties, for whom no compensation is
+     possible, where one industry gains by its being favored in
+     the same way that it loses when another is favored. (Sur la
+     Marque de Fer, I, p. 376 ff., Daire.) "Those who cry so
+     loudly for protective duties are partly thoughtless persons
+     who wish to avoid the consequences of bad speculations, and
+     in part shrewd persons who would like to earn during the
+     first years a rate of profit higher than that usual in the
+     country." (_Rossi._) _Bastiat_ ridicules the advocates of a
+     protective tariff by the petition of the lamplighters, lamp
+     manufacturers, etc., that to advance their industry, and
+     indirectly almost all others, the mighty foreign competition
+     of the sun might be removed from all houses. (Sophismes
+     écon., ch. 7.) To him, the protective system is precisely
+     the system of want; freedom of trade, the system of
+     superabundance. Political economy would have fulfilled its
+     practical calling, if, by means of universal freedom of
+     trade, it had done away with all that is left of that system
+     which excludes foreign commodities because they are cheap,
+     that is, because they include _une grande proportion
+     d'utilité gratuite_. (Harmonies, p. 174, 306.) _Cobden's_
+     pet expression: "Free trade, the international law of the
+     Almighty!" (Polit. Writings, II, 110.) _K. S. Zachariä_
+     calls the protective system a step introductory to communism
+     (Staatsw. Abh., 100), because it nearly always leads to
+     over-population and _List's_ system, a politico-economical
+     absurdity. (Vierzig Bücher vom Staate, VII, pp. 23, 92.)]
+
+     [Footnote A3-3-2: Among the many frequently wonderful
+     speeches by which persons engaged in industry are wont to
+     support their motion for protective duties, etc., the
+     following are particularly characteristic. The long struggle
+     of English manufactures against the East Indian Company,
+     since the later portion of the seventeenth century. Compare
+     _Pollexfen_, England and East India inconsistent in their
+     Manufactures (1697), against which _Davenant_, at the
+     solicitation of the company, wrote his Essay on the E. I.
+     Trade (1697). Prohibition of East Indian commodities, 11 and
+     12 Will. III., ch. 10. The struggle did not stop until the
+     middle of the eighteenth century, when India was outflanked
+     by English machines. When Pitt, in 1785, labored for the
+     abolition of the tariff-barriers against Ireland, English
+     manufacturers, and among others Robert Peel, declared that
+     they would be forced in consequence to transfer a part of
+     their manufactories to Ireland! (_McCulloch_, Literature of
+     Political Economy, p. 55.) _Say_ tells of a proposition made
+     by the hat-makers of Marseilles to prohibit foreign straw
+     hats (1. c).]
+
+     [Footnote A3-3-3: W. of N., IV, ch. 2. According to _Roger
+     Coke_, England's Improvement (1675), ship-building in
+     England became dearer in a few years by about one-third, on
+     account of the navigation act; and the wages of sailors
+     advanced to such an extent that England lost its Russian and
+     Greenland trade almost entirely, and the Dutch obtained the
+     control of it. This _J. Child_, Discourse of Trade, admits,
+     but still calls the navigation act the _magna charta
+     maritima_. Similarly, _Davenant_, Works, I, 397. Here the
+     relation of the cost to the immediate product can as little
+     decide as it can against the exercise of troops or the
+     construction of forts. _Adam Smith_ allows the same reasons
+     to apply to export premiums for sail-cloth and gunpowder
+     (IV, ch. 5). Recently, however, _Bülau_
+     (Staatswirthschaftlehre, 339; Staat und Industrie, 220
+     seq.;) has argued against all these exceptions of Adam
+     Smith.]
+
+     [Footnote A3-3-4: _Schleiermacher_ (Christ. Sitte, 476)
+     calls the polemics which can see nothing but error in a
+     refuted theory, immoral.]
+
+
+SECTION IV.
+
+FURTHER EDUCATIONAL EFFECTS OF THE INDUSTRIAL PROTECTIVE SYSTEM.
+
+The sacrifices which the protective system directly imposes on the
+national wealth consist in products, fewer of which with an equal
+straining (_Anstrengung_) of the productive forces of the country, are
+produced and enjoyed, than free trade would procure. But it is possible
+by its means to build up (_bilden_) new productive forces, to awaken
+slumbering ones from their sleep, which, in the long run, may be of much
+greater value than those sacrifices. Who would say that the cheapest
+education is always the most advantageous?[A3-4-1] Only by the
+development of industry also, does the nation's economy become
+mature.[A3-4-2] The merely agricultural state can attain neither to the
+same population nor the same energy of capital, to say nothing of the
+same skillfulness of labor, as the mixed agricultural and industrial
+state; nor can it employ its natural forces so completely to
+advantage.[A3-4-3] How many beds of coal, waterfalls, hours of
+leisure,[A3-4-4] and how much aptitude for the arts of industry, can be
+turned to scarcely any account in a merely agricultural state? If,
+therefore, the protective system could materially promote a national
+industry, or if it made such industry possible, for the first time, the
+sacrifice connected therewith, in the beginning, should be considered
+like the sacrifice of seed made by the sower;[A3-4-5] but this can be
+justified only on the three following conditions: that the seed is
+capable of germination; that the soil be fertile and properly
+cultivated, and the season favorable.[A3-4-6] [A3-4-7]
+
+     [Footnote A3-4-1: _List_, Nationales System der polit.
+     Oekonomie, kap. 12, contrasts two owners of estates, each of
+     whom has five sons, and can save 1,000 thalers a year. The
+     one brings his sons up as tillers of the ground (_Bauern_ =
+     peasants) and puts his savings out at interest. The other,
+     on the contrary, has two of his sons educated as _rational_
+     (_rationelle_) agriculturists, and the others as intelligent
+     industrial workers, and at a cost which prevents the
+     possibility of his accumulating any more capital. Which of
+     the two has cared better for the standing, wealth, etc. of
+     his posterity; the adherent of the "theory of exchangeable
+     values" or the adherent of the doctrine of "the productive
+     forces?"]
+
+     [Footnote A3-4-2: The rent of the land of Gr. Botton, in
+     Lancashire, was estimated in 1692 at £169 per annum; in
+     1841, at £93,916. (_H. Ashworth._)]
+
+     [Footnote A3-4-3: The pottery district of Staffordshire was
+     formerly considered very unfertile. It was industry that
+     first showed how the rich and varied beds of clay at the
+     surface, and the wealth of coal under them, could be fully
+     utilized.]
+
+     [Footnote A3-4-4: Blind free-traders always like to assume
+     that every man capable of working always busies himself;
+     whereas idleness frequently excuses the wasting of its time,
+     by the plea that a remunerative market of the possible new
+     products is improbable, or at least uncertain. Compare _J.
+     Möser_, P. Ph., I, 4. _Kröncke_, Steuerwesen (1804), 324,
+     328 seq., and even the first German reviewers of Adam Smith
+     in _Roscher_, Gesch. der N. Oek. in Deutschland, II, 599.]
+
+     [Footnote A3-4-5: _List_ calls attention to the case of the
+     stenographic apprentice who writes more slowly for a time
+     than he was wont to formerly.]
+
+     [Footnote A3-4-6: Let us suppose that a country had hitherto
+     produced $10,000,000 worth of corn, and that of this amount
+     it had sent $1,000,000 worth into foreign countries as a
+     counter-value for foreign manufactured articles. It now, by
+     means of a protective tariff, establishes home manufactures,
+     through the instrumentality of which a coal bed or water
+     fall is turned to account. The workmen in the manufactories
+     henceforth consume what was formerly exported. Of course
+     such a change is not effected without loss; but this loss
+     ceases as soon as the home industry becomes the equal of the
+     foreign industry which was crowded out. And then the forces
+     which have been made useful in the meantime appear as clear
+     gain. _List_ not unfrequently called special attention to
+     the fact that a consumption of 70,000 persons engaged in
+     home industries means as much to German agriculture as all
+     that it exported to England from 1833 to 1836.
+     (Zollvereinsblatt, 1843, No. 5.)]
+
+     [Footnote A3-4-7: _Adam Smith's_ free-trade doctrine has
+     always been contradicted in Germany. Even in 1777, his first
+     great reviewer, _Feder_, says that many foreign commodities
+     can be dispensed with without damage; and that industries
+     which indemnify the undertakers of them only after a time
+     but which are then very useful to the community in general,
+     would not be begun always without special favor shown them.
+     (_Roscher_, Geschichte der National Oekonomie, II, p. 599.)
+     _Kröncke_, Steuerwesen, 324 ff., speaks of attempts towards
+     the education of industries by taxation-favors: "If of ten,
+     only one succeeds, even that is to be considered a great
+     gain." But modern protectionists base themselves chiefly on
+     their interest in the independence of the country, precisely
+     as the free-traders do on that of individual freedom. _Ad.
+     Müller_, with his organic way of comprehending things,
+     opposes the assumption of a merely mercantile world-market,
+     in which all the merchants engaged in foreign trade
+     constitute a species of republic. (_Quesnay._) He also
+     rejects on national grounds the universal freedom of trade
+     as well as the universal empire akin to it; although as a
+     means of opposing it, he suggests not so much a protective
+     tariff as the intellectual cultivation of nationality in
+     general. (Elemente der Staatskunst, 1809, II, 290, III, 215,
+     II, 240, 258.) According to _Sörgel_ (Memorial an den
+     Kurfürst v. Sachsen, 1801,) commercial constraint
+     (_Handelszwang_), by means of export and import duties, is
+     useful in the childhood of manufactures, afterwards
+     injurious, because the powerful incentive to perfection is
+     wanting where no competition is to be feared (67). _P.
+     Kaufmann_, the opponent of Smith's balance-theory, demands
+     moderate protection against the otherwise irresistible
+     advantages to already developed industrial nations.
+     (Untersuchungen, 1829, I, 98 ff.) The principal advocate in
+     this direction is _Fr. List_, with a great deal of sense for
+     the historical, but with little historical erudition; and
+     after the manner of an intelligent journalist, he reproaches
+     the free-trade school with baseless cosmopolitanism, deadly
+     materialism, and disorganizing individualism. He
+     distinguishes in the development of nations five different
+     stages: hunter-life, shepherd-life, agriculture, the
+     agricultural-manufacturing period, the
+     agricultural-manufacturing-commercial period; and he demands
+     that the state should lend its assistance in the transition
+     from the third to the fourth stage, in the nursing or
+     planting of manufacturing forces in connection, throughout,
+     with the enfeebling of feudalism and bureaucracy, the
+     increase of the middle class, with the power of public
+     opinion, especially of the press, the strengthening of the
+     national consciousness from within and without. Compare
+     _Roscher's_ review in the Gött. gelehrten A. 1842, No. 118
+     ff. As to how List resembles, and differs from Ad. Müller,
+     see _Roscher_, Gesch. der N. O., II, 975 ff.; _von Thünen's_
+     independent defense of a protective tariff; Isolirter Staat,
+     II, 2, 81, 92 ff., 98; Leben, p. 255 seq. The socialist
+     _Marlo_ (Weltökonomie, I, ch. 9, 10) distinguishes common
+     products (_Gemeinprodukte_) which may be obtained equally
+     well in every properly developed country, and peculiar
+     products (_Sonderprodukte_), like coffee, wine, etc. With
+     respect to the former, he agrees with List; in regard to the
+     latter, with Smith. A protective tariff exerts a constraint
+     on consumers, compelling them to abridge their enjoyments
+     somewhat, and to employ these now in the procuring of
+     instruments of production, in the exercise of skill needed
+     in production and the accumulation of capital. At the same
+     time foreigners should be kept from utilizing home natural
+     forces, and where possible, home manufactures should be
+     helped to utilize foreign natural forces. _Marlo_, indeed,
+     assumes, as one-sidedly as the followers of Smith do the
+     contrary, that without the tariff the workmen in question
+     would not be employed at all; but he is right in this, that
+     the most fruitful employment of the forces of labor, and the
+     keeping of them most completely busy, mutually replace each
+     other. In France, even _Ferrier_, Du Gouvernement considéré
+     dans ses Rapports avec le Commerce (1808), had defended the
+     Napoleonic continental system. See _Ganilh_, the French
+     List, Theorie de l'Economie politique (1822), who grades the
+     branches of a nation's economy in a way the reverse of Adam
+     Smith, and finds the protective system necessary for the
+     less developed nations, to the end that they may not be
+     confined to the most disadvantageous employments of capital
+     (II, p. 192 ff.). Especially is a greater population made
+     possible in this way (248 ff.). Similarly, _Suzanne_,
+     Principes de l'E. polit., 1826. Further, _H. Richelot_,
+     List's translator. _M. Chevalier_, who recommends free trade
+     for France in our day so strongly, approves the system of
+     Cromwell and Colbert for their own time, and for a long time
+     afterwards (Examen du Système commercial, 1851, ch. 7): a
+     view which _Périn_ says is now shared by "all serious
+     writers." (Richesse dans les Sociétés Chrétiennes, 1861, I,
+     p. 510.) _Demesnil-Marigny_, Les libres Échangistes et les
+     Protectionistes conciliés (1860), bases his protective
+     system on this, chiefly, that it may greatly enhance the
+     money-value of a nation's resources to the detriment of
+     other nations, especially by the transformation of
+     agricultural labor, estimated in money, into the much more
+     productive labor of industry. The value in use of all the
+     national resources is doubtless greatest where full freedom
+     of trade obtains. In Russia, _Cancrin_ demands that every
+     nation should be to some extent independent in respect to
+     all the chief wants to the production of which it has at
+     least a middle (_mittlere_) opportunity; especially as all
+     civilization, even the higher development of agriculture,
+     must proceed from the cities. (Weltreichthum, 1821, 109 ff.
+     Oekonomie der menschlichen Gesellschaften, 1845, 10, 235 ff.)
+     America's most distinguished protectionist is _Hamilton_,
+     Report on the Subject of Manufactures presented to the House
+     of Representatives, December 5, 1791. _Jefferson's_ saying,
+     that the industry should settle by the side of agriculture,
+     leads us to _Carey_, who repeats the same idea with wearying
+     unwearisomeness; at first for the reason that the "machine
+     of exchange" should not be allowed to become too costly; but
+     afterwards rather from the Liebig endeavor to prevent the
+     exhaustion of the soil. He describes, indeed, how the East
+     Indian producer and consumer of cotton are united with one
+     another by a pontoon bridge which leads over England.
+     (Principles of Social Science, I, 378.) A good soil and good
+     harbors are the greatest misfortune for a country like
+     Carolina if free trade prevails, because it is turned into
+     an agricultural country (I, 373). The people who, after the
+     manner of the Irish, gradually export their soil, will end
+     by exporting themselves. _Carey_ would force colonies to
+     demean themselves like old countries from the first. If corn
+     be worth 25 cents in Iowa, and in Liverpool $1, for which 20
+     ells of calico are brought back, the Iowa farmer receives of
+     this quantity about 4 ells. Hence it would be no injury to
+     him were he to supply his want of cotton from a neighbor who
+     produced it at a cost four times as great as the Englishmen.
+     Analogies drawn from natural history, as, for instance, that
+     every organism, the lower it is in the scale of existence,
+     the greater is the homogeneity of its several parts; also a
+     deep aversion for centralization, and hatred of England,
+     coöperate in _Carey's_ recommendation of the protective
+     system, often called in the United States the "American
+     system," in opposition to the "British," advocated by
+     Webster against Calhoun and Clay against Jackson. _John
+     Stuart Mill_, Principles, V, ch. 10, 1, allows a protective
+     tariff temporarily, "in hopes of naturalizing a foreign
+     industry in itself perfectly suitable to the circumstances
+     of the country." Peel's colleague, G. Smythe, said, in 1847,
+     at Canterbury, that as an American (citizen of a young
+     country) or as a Frenchman (citizen of an old country with
+     its industry undeveloped), he would be a protectionist.
+     (Colton, Public Economy, p. 81.) Even _Huskisson_ admitted,
+     in 1826, that England in the seventeenth century had been
+     very much advanced by its protective system; and that he
+     would continue to vote even now for its maintenance, if
+     there were no reprisals to fear.]
+
+
+SECTION V.
+
+PROTECTION AS A POLICY.
+
+A. So long as a nation is, indeed, politically independent, but
+economically in a very low stage, it is best served by entire freedom of
+trade with the outside world; because such freedom causes the influences
+of the incentives, wants, and the means of satisfaction of a higher
+civilization to be soonest felt in the country.
+
+B. The further advance which consists in the development of home
+industries by the country itself, may, indeed, be rendered exceedingly
+difficult by the unrestricted competition of foreign industries, which
+are already developed. The carriers on of industry in an old industrial
+country have a superiority over those in the new, in the amount of
+capital, the lowness of the rate of interest, the skill of undertakers
+(_Unternehmer_) and workmen, generally, also in the consideration in
+which the whole country hold industry, and the interest they take in
+it;[A3-5-1] while in the country which has hitherto been merely
+agricultural, it happens only too frequently that industry is
+undervalued, and that young industrial talent is, as a consequence,
+forced to emigrate. How frequently it has happened that England by
+keeping down her prices for a time has strangled her foreign
+rivals.[A3-5-2] Even on the supposition of equal natural capacity, the
+struggle between the two industries would come to a close similar to
+that between a boy of buoyant spirits and an athletically developed man.
+What then is to be said of the cases in which the more highly developed
+nation is at the same time possessed of the more favorable natural
+advantages, such, for instance, as England possesses over Russia in her
+incomparable situation in relation to the trade of the world, and which
+gives her for all distant countries, without any active commerce, a
+monopoly-like advantage; farther, her magnificent harbors, streams, her
+well-situated wealth in iron and coal, etc. The advantages of mere
+priority weigh most heavily, when the great development of all means of
+transportation almost does away with the natural protection afforded by
+remoteness; and when, at the same time, a certain universality of
+fashion, which, as a rule, is governed by the most highly developed
+nations, causes national and local differences of taste, which could be
+satisfied only by national or local production, to become
+obsolete.[A3-5-3] Under such circumstances, it would be possible, that a
+whole nation might be made continually to act the part of an
+agricultural district (_plattes Land_), to one earlier developed,
+leaving to the latter, almost exclusively, the life of the city and of
+industry.[A3-5-4] A wisely conducted protective system might act as a
+preventive against this evil, the temporary sacrifices which such a
+system necessitates being justifiable where some of the factors of
+industrial production unquestionably exist but remain unused, because
+others, on account of the mere posteriority of the nation, cannot be
+built up. The abusive term "hot-house plant" should not be used where
+there is question only of transitory protection, and where there is the
+full intention to surrender the grown tree to all the wind, rain and
+sunshine of free competition, and where it is foreseen that it shall be
+so surrendered.[A3-5-5] [A3-5-6] The want of a certain economic
+many-sidedness which must be given to a nation manifests itself in a
+particularly urgent manner in times of protracted war. Here the error of
+so many free-traders, that different states should comport themselves
+towards one another as the different provinces of the same state do, is
+most clearly refuted.[A3-5-7]
+
+C. No less important is the political side of the question. Since the
+protective system forces capital and labor away from the production of
+raw material and into industry, it exerts a great influence on the
+relations of the classes or estates of a country to one another. The
+immense preponderance possessed in medieval times by the nobility,
+agriculture, the country in general as contradistinguished from the
+city, by the aristocratic and conservative elements, is curtailed in
+favor of the bourgeoisie, of industry, of the cities generally, and of
+the democratic and progressive elements. If when the history of a nation
+is at its highest point, there is supposed a certain equilibrium of the
+different elements, all of which are equally necessary to the prime of a
+nation's life, this height is now attained sooner than it would
+otherwise be. It is no mere accident that in almost every instance,
+those monarchs who humbled the medieval nobility and introduced the
+modern era, also established a protective system.[A3-5-8]
+
+D. However, such an education of industry can be attempted with proper
+success only on a large scale, that is, on a national basis. The least
+hazardous (_unbedenklich_) measure of the system, import-duties supposes
+a relatively short boundary line, such as only a great country, even
+where its formation is the most favorable imaginable, can
+possess.[A3-5-9] The greater the tariff territory (_Zollgebiet_), the
+less one-sided is its natural capacity wont to be, the sooner may an
+active competition in its interior be built up, while the foreign market
+always suffers from uncertainty. Hence all tariff-unions (_Zollverein_)
+between related states are to be recommended not only as financially but
+also as economically advantageous. Between states not related and of
+equal power, so far-reaching a reciprocity, embracing nearly the whole
+of economic policy, can scarcely be established; and it would be still
+harder for it to continue long. If the states not related are of very
+unequal power, the probable consequence would be the early absorption of
+the weaker by the stronger.[A3-5-10] [A3-5-11]
+
+     [Footnote A3-5-1: What an advantage it has been to English
+     industry and commerce that the state here so long considered
+     it a matter of honor to have its subjects well represented
+     in foreign countries, to extend their market, etc.]
+
+     [Footnote A3-5-2: _Hume_, in the parliamentary session of
+     1828, uses the expression "strangulate," to convey this
+     idea. As early as 1815, Brougham said: "It was well worth
+     while to incur a loss on the exportation of English
+     manufactures in order to stifle in the cradle the foreign
+     manufactures." The report of the House of Commons on the
+     condition of the mining district (1854) speaks of the great
+     losses, frequently in from three to four years, of £300,000
+     to £400,000, which the employers of labor voluntarily
+     underwent, in order to control foreign markets. "The large
+     capitals of this country are the great instruments of
+     warfare against the competing capital of foreign countries,
+     and are the most essential instruments now remaining by
+     which our manufacturing supremacy can be maintained."]
+
+     [Footnote A3-5-3: Before the development of the machinery
+     system, also, the preponderance of the greatest industrial
+     power could not be nearly as oppressive as later; especially
+     as in highly developed commercial countries, the wages of
+     labor are always high. (_List_, Zollvereinsblatt, 1843, No.
+     44, 1845, No. 5, ff.)]
+
+     [Footnote A3-5-4: "Shall the forester wait until the wind in
+     the course of centuries carries the seed from one place to
+     another, and the barren heath is converted into a dense
+     wood?" (_List_, Gesammelte Schriften, III, 123 seq.) When
+     the Romans had conquered an industrial country, its
+     industries began generally to flourish better, because of
+     the greater market opened to them; whereas, those which had
+     no industries before, continued, for the most part, to
+     remain producers of the raw material after the conquest,
+     also. Related to this is the phenomenon, that the provinces
+     not favored by nature, were much less backward in the middle
+     ages than they are to-day. Compare the description of the
+     misery of Mitchelstown, after the Earl of Kingston had
+     ceased to consume £40,000 there: _Inglis_, Journey through
+     Ireland, 1835, I, 142. The royal commission appointed to
+     investigate the misery of Spessart in 1852, show that the
+     home-made clothing had gone out of use there, and that the
+     wooden shoes, so well adapted to wooded countries, had been
+     changed for leather ones. This becoming acquainted with
+     foreign wants in a region not adapted to industries, without
+     a large market, greatly increased the distress. As soon as
+     such a region becomes an independent state, a productive
+     system would suggest itself.]
+
+     [Footnote A3-5-5: _List_ very well remarks that otherwise
+     most of our fruit trees, vines, domestic animals would be
+     "hot-house plants." And even men are brought up in the
+     hot-house of the nursery, the school, etc.
+     (Zollvereinsblatt, 1843, No. 36.)]
+
+     [Footnote A3-5-6: That a posterior people would never be in
+     a condition to establish industries of their own, where full
+     freedom of trade prevails, I do not by any means assert.
+     Compare the list of industries which attained to so
+     flourishing a condition without the aid of a protective
+     tariff, that they were able to supply foreign markets, in
+     _Rau_, Lehrbuch, II, § 206, a. But when Switzerland is so
+     frequently cited as an illustration in this connection (_J.
+     Bowring_, On the Commerce and Manufactures of Switzerland,
+     1836), people forget the many favorable circumstances of
+     another kind which coöperated here to elevate industry; a
+     neutrality of three hundred years, during the French
+     Huguenot War, the Thirty Years' War, the Wars of Louis XIV.,
+     and as a consequence of this, no military budgets, few taxes
+     and state debts, etc. In addition to this, at an earlier
+     period, the many mercenary troops, and afterwards the
+     foreign travelers.]
+
+     [Footnote A3-5-7: As free trade in Holland's best period was
+     more an international law than a politico-economical system,
+     so, afterwards, the Dutch protective system grew out of war
+     prohibitions; and, in times of peace, the newly established
+     industry was not abandoned. At last, in the time of its
+     decline, all industries, with a strange logic, sought
+     protection, even the most ancient one, the one whose growth
+     was the most natural, the fisheries. (_Laspeyres_, Gesch.
+     der volksw. Ansch., 134 ff., 146, 159.) The United States,
+     during the war of 1812, with England, doubled their
+     protective duties. (_A. Young_, Report on the Customs-tariff
+     Legislation of the U. S., 1874.)]
+
+     [Footnote A3-5-8: Hence, we should not judge the Russian and
+     the American systems of industrial protection, for instance,
+     by the same rule. In Russia, it may be necessary to
+     strengthen artificially the still weak bourgeoisie, and to
+     awaken numberless slumbering forces and opportunities by
+     encouragement of their use by state measures. Here, also,
+     the absolute ruler is called upon, and accustomed to educate
+     his people. In the United States, on the other hand, there
+     is no nobility; the whole nation belongs to the class of
+     burghers, and even the cultivators of the land are raisers
+     of corn, cattle traders, land speculators etc. Considering
+     the universal activity and laborious energy of the people,
+     it is to be expected that every really profitable
+     opportunity will be turned to account in such a country,
+     without any suggestion or assistance from the state. Here,
+     therefore, _A. Walker's_ saying is true: America should
+     produce no iron, not because it does not know how, because
+     it has not sufficient capital, because the nature of the
+     country is not adapted to it, or because it has no natural
+     protection, but "because we can do better." (Sc. of W., 94
+     seq.) Since a democracy cannot, properly speaking, educate
+     the people, the protective duties of the United States are,
+     for the most part, only attempts by one part of the people,
+     who claim to be the whole, to prey upon the other parts.]
+
+     [Footnote A3-5-9: If we suppose three countries, each in the
+     form of a square: A = 1 sq. m., B = 100 sq. m., C = 10,000
+     sq. m.; there is in A for every mile of boundary ¼ sq. m.
+     of inland country; in B, 2½ in C, 25.]
+
+     [Footnote A3-5-10: Towards the close of the middle ages, the
+     vigorous commercial policy of Venice, for instance, towards
+     Greece, or the Mohammedan power, was thwarted by other
+     Italian cities, Genoa, Pisa, and later, by Florence
+     especially.]
+
+     [Footnote A3-5-11: Why most of the reasons above advanced do
+     not apply to a corresponding "protection" of agriculture by
+     duties on corn, see _Roscher_, Nationalökonomik des
+     Ackerbaues, § 159 ff.]
+
+
+SECTION VI.
+
+WHY THE PROTECTIVE SYSTEM WAS ADOPTED.
+
+This explains why so many nations in the periods of transition between
+their medieval age and their higher stages of civilization, adopted the
+industrial protective system.[A3-6-1] [A3-6-2] [A3-6-3] [A3-6-4] [A3-6-5]
+[A3-6-6]
+
+     [Footnote A3-6-1: The fact that among the ancients there was
+     so little thought bestowed on the protection of industry is
+     related to the comparative insignificance of their industry.
+     Compare _Roscher_, Ansichten der Volkswirthschaft, 3 ed.,
+     1878, vol. 1, p. 23 ff. It occasionally happened in the east
+     that workers in metal, especially the makers of metallic
+     weapons, were dragged out of the country. I _Sam._, 13, 19;
+     II _Kings_, 24, 14 ff.; _Jerem._, 24, 1, 29, 2. Among the
+     Jews, certain costly products were subjected to export
+     prohibitions for fear that the heathen might use them for
+     purposes of sacrifice. (_Mischna_, De Cultu peregr., § 6.)
+     Persian law, that the king should consume only home
+     products: _Athen._, V, p. 372; XIV, p. c. 62. The Athenians
+     went farthest in reducing such provisions to a system. Solon
+     had strictly prohibited the exportation of all raw material
+     save oil (_Plutarch_, Sol., 24), and a complaint was allowed
+     against any one who scoffed at a citizen because of the
+     industry he carried on in the market. (_Demosth._, adv.
+     Eubul., p. 1308.) The exportation of corn was always
+     prohibited; also that of the principal materials used in
+     ship-building. In war, prohibitions of the exportation of
+     weapons; importation from enemy countries also prohibited.
+     No Athenian was permitted to loan money on ships which did
+     not bring a return cargo to Athens (_Demosth._ adv. Lacrit.,
+     p. 941), nor carry wheat to any place but Athens. (_Böckh._,
+     Staatsh. der Ath., I, 73 ff.) In Argos and Ægina, the
+     importation of Athenian clay commodities and articles of
+     adornment, prohibited. (_Herodot._, V, 88; Athen., IV, 13;
+     XI, 60.)
+
+     The Athenians imposed a duty of two per cent. both on
+     imports and exports. Similarly, in Rome, where the higher
+     duties imposed on many articles of luxury served an
+     ethico-political purpose. We have, besides, accounts of
+     prohibitions of the exportation of money: _Cicero_, pro
+     Flacco, 28 (L., 2, Cod. Just., IV, 63). Plato's advice to
+     prohibit the importation of luxuries and the exportation of
+     the means of subsistence (_De Legg._) on ethico-political
+     considerations; and the Byzantine prohibition of the
+     exportation of certain articles of display from court
+     vanity. (Porph. Decaerim, p. 271 ff. Reiske.)]
+
+     [Footnote A3-6-2: In Italy's best period, the protective
+     system bears a specifically municipal complexion; in
+     democracies, a guild-complexion; the former especially
+     because of the many differential duties in favor of the
+     capital.
+
+     A very highly-developed protective system in Florence. The
+     exportation of the means of subsistence forbidden (Della
+     Decima, II, 13), and so likewise the importation of finished
+     cloths. (Stat Flor., 1415, V, p. 3; Rubr., 32, 39, 41, 43,
+     45.) In the streets devoted to the woolen industries, it was
+     not permitted to give the manufacturers notice to quit their
+     dwellings, nor to increase their rent, unless the
+     connoisseurs in the industry had admitted a higher rate of
+     profit. (Decima, II, 88.) In order to promote the silk
+     industry, the importation of silk-worms and of the mulberry
+     leaf was freed from the payment of duties in 1423, the
+     exportation of raw silk, cocoons and of the mulberry leaf
+     forbidden in 1443; and in 1440, every countryman was
+     commanded to plant mulberry trees. (Decima, II, 115.) When
+     Pisa was subdued, the Florentines reserved to themselves all
+     the wholesale trade, and prohibited there all silk and
+     woolen industries. (_Sismondi_, Gesch. der italienischen
+     Republic, XII, 171.) It was a principle followed by Milan in
+     its best period, to exempt manufacturers from taxation.
+     Yearly subsidies, accorded about 1442, to Florentine
+     silk-manufacturers, who immigrated; in 1493, a species of
+     _expropriation_, in case of houses which a neighbor needed
+     for manufacturing purposes. (_Verri_, Mem. Storiche, p. 62.)
+     Bolognese prohibition of the exportation of manuscripts,
+     because they wanted to monopolize science. (_Cibrario_, E.
+     polit. del. medio. Evo., III, 166.) Even in the seventeenth
+     century, a city like Urbino forbade the exportation of
+     cattle, wheat, wood, wool, skins, coal, as well as the
+     importation of cloth, with the exception of the very
+     costliest kinds. (Constitut. Due. Urbin., I, p. 388 ff., 422
+     ff.)]
+
+     [Footnote A3-6-3: In England, since the fourteenth century,
+     all genuinely national and popular kings always bore it in
+     mind both to secure emancipation from the Hanseates, to
+     invite foreigners skilled in industry to the country (the
+     Flemings since 1331, although the English people disliked to
+     see them come; _Rymer_, Foedd., IV, 496) and to adopt
+     protective measures, especially when they had reason to rely
+     on the bourgeoisie. (_Pauli_, Gesch. von England, V, 372.)
+     The precursors of the navigation act, 1381, 1390, 1440.
+     (_Anderson_, Origin of Commerce.) The prohibition of
+     exporting raw wool (1337, II Edw. III., c. 1 ff.) lasted
+     only one year. Wool remained a long time still so much of a
+     chief staple commodity that in 1354, for instance, £277,000
+     worth were exported; of all other commodities taken
+     together, only £16,400. (_Anderson._) On the other hand, the
+     prohibition to import foreign stuffs (1337), for instance,
+     was repeated in 1399, and the prohibition to export woolen
+     yarn and unfulled cloths in 1376, 1467, 1488. The statutes
+     of employment operated very generally. The statutes provided
+     that foreign merchants should employ the English money they
+     received only to purchase English commodities, and their
+     hosts, with whom they were obliged to live, had to become
+     security therefor. Thus, in 1390, 4 Henry IV., c. 15, and 15
+     Henry IV., c. 9; 18 Henry VI., c. 4, 1477. Prohibitions of
+     the exportation of money, 1335, 1344, 1381. Even in the case
+     of payment by the bishops to the pope, the exportation of
+     money was forbidden in 1391, 1406, 1414. Henry VIII. (3
+     Henry VIII., c. 1) threatened the exportation of money with
+     the penalty of double payment. Even in 1455, the importation
+     of all finished silk wares was prohibited for five years.
+     See a long list of similar prohibitions in _Anderson_. The
+     prohibitions relating to the exporting of raw materials, and
+     especially wool, were exceedingly strict in Elizabeth's
+     time, and stricter yet in the seventeenth century. The
+     penalty of death was attached to their violation, and
+     producers subjected to the most burthensome control.
+     Moderated especially by 8 Geo. I., c. 15. In the eighteenth
+     century we again find a series of import-premiums for raw
+     material from the English colonies. Compare _Adam Smith_,
+     IV, ch. 8.]
+
+     [Footnote A3-6-4: _Sismondi_, Histoire des Français, XIX,
+     126, considers as the beginning of the French industrial
+     protective system, the edict of 1572, by which, with a view
+     of promoting the woolen, hemp and linen manufactures, the
+     exportation of the raw material and the importation of the
+     finished commodities are prohibited. (_Isambert_, Recueil,
+     XIV, p. 241.) Yet even Philip IV., in 1302, had prohibited
+     the exportation of the precious metals, of corn, wine and
+     other means of subsistence. (Ordonn., I, 351, 372.) About
+     1332, the decision of the question whether the exportation
+     of wool also should be forbidden was made to depend on who
+     offered the most, the raw-producers or those engaged in
+     industry. (_Sismondi_, X, 67 seq.) The third estate not
+     unfrequently asked for protective measures from the
+     parliaments: thus, in 1484, a prohibition against the
+     importation of cloth and silk stuffs, and against the
+     exportation of money (_Sismondi_, XIV, 673), claims which
+     went much further in 1614, when freedom of trade, reform of
+     the guilds, etc., were desired. Opposition of Sully to the
+     industrial-political measures of Henry IV., whose
+     prohibition of foreign and gold stuffs lasted scarcely one
+     year. (_Forbonnais_, Finances de Fr., c. 44.) The edict of
+     1664, which, for the first time, created a boundary
+     tariff-system for the greater part of France, with the
+     removal of numerous export and import duties of the several
+     provinces, and the abolition even of the duty-liberties of
+     the King's court, marks an epoch. The introduction in which
+     Colbert lets the King speak of his services to the
+     taxation-system, the marine, colonies, etc., in which he
+     describes the chaos of those earlier duties, and
+     demonstrates their desirability of doing away with them, is
+     very interesting. Colbert, inconsistently enough, allowed a
+     number of export duties for industrial products to remain,
+     that he might not alienate any domanial rights.
+     (_Forbonnais_, I, 352.) The tariff, then very moderate, was,
+     in 1677, doubled in part, and even trebled, which provoked
+     retaliation, and led to the war of 1672. Hence, in 1678, the
+     tariff of 1664 was, for the most part, restored. Colbert
+     entirely prohibited these commodities, which were still
+     imported, spite of the tariff: thus, Venetian mirrors and
+     laces in 1669 and 1671. Among his characteristic measures
+     are the export-premiums for salt-meats which went to the
+     colonies in order to draw this business away from Holland to
+     France. (_Forbonnais_, I, 465.) He caused the transit
+     between Portugal and Flanders to be made through France by
+     providing that it should be carried on by means of royal
+     ships at any price. (_Forbonnais_, I, 438.) Compare
+     _Clement_, Histoire de la vie et de l'Administration de C.
+     (1846). _Jonbleau_, Études sur C. ou Exposition du Système
+     d'Économie Politique suivi de 1661 à 1683 (II, 1856).
+     Lettres, Instructions et Mémoires de C. publiés par Clément
+     (1861 ff.).]
+
+     [Footnote A3-6-5: In Germany, the tariff projects of the
+     empire of 1522, contemplated no protection, inasmuch as
+     imports and exports were equally taxed, but the importation
+     of the most necessary means of subsistence was left free.
+     Prohibition of the exportation of the precious metals in
+     1524; of the exportation of raw wool _mit grossen Haufen_
+     (R. P. O., of 1548, art. 21; 1566, and in the R. P. O. of
+     1577, limited to the pleasure of the several districts).
+     Hence, in Brandenburg, 1572 and 1578, the Saxons,
+     Pommeranians and Mecklenburghers were prohibited to export
+     wool and to import cloth, in retaliation. Individual states
+     had much earlier adopted protective measures: Göttingen, in
+     1430, prohibited the exportation of yarn, and in 1438, the
+     wearing of foreign woolen stuffs. (_Havemann_, Gesch. von
+     Braunschweig und Luneburg, I, 780 seq.) Hanseatic politics
+     recall in many respects the Venetian. After 1426, the sale
+     of Prussian ships to non-Hanseates was made as difficult as
+     possible; and in 1433, the importation of Spanish wool was
+     prohibited in order to compel the payment of debts by Spain.
+     (_Hirsch_, Gesch. des Danziger, H. 87, 268.) Prohibition of
+     the exportation of the precious metals to Russia at the end
+     of the thirteenth century. _Sartorius_, II, 444, 453, III,
+     191. The elector, Augustus of Saxony, forbade the
+     exportation of corn, wool, hemp and flax (Cod. Aug. I.,
+     1414). The Bavarian L. O., of 1553, prohibits generally the
+     sale of corn, cattle, malt, tallow, leather or other
+     _Plennwerthe_ to foreigners; which prohibition was, in 1557,
+     limited to cattle, malt, tallow, wool and yarn.
+
+     The protective system received its most important
+     development in Prussia. Prohibition by the margrave, about
+     the end of the thirteenth century, of the exportation of
+     woolen yarn. (_Stengel_, Pr. Gesch., I, 84.) In the
+     privilege accorded to the weavers of woolen wares, in 1414,
+     the importation of the less important cloths is forbidden
+     for two years. (_Droysen_, Preuss. Gesch. I, 323.) The
+     prohibition of the exportation of wool of 1582 assigns as a
+     reason of the prohibition, that the numerous leading weavers
+     should not be ruined for the sake of a few unmarried
+     journeymen and sellers. (_Mylius_, C. C. M., V, 2, 207.) In
+     the prohibitions of 1611 and 1629, the domains, the estates
+     of prelates and knights were exempted; similarly, in Saxony,
+     1613-1626; which is one of the many symptoms of the then
+     growing _Junkerthum_. The great elector, who attached, both
+     in war and peace, great value to the possession of coasts,
+     men-of-war and colonies, forbade, for instance, the
+     importation of copper and brass wares (1654), of glass
+     (1658), of steel and iron (1666), of tin (1687); farther,
+     the exportation of wool (1644), leather (1669), skins and
+     furs (1678), silver (1683), rags (1685). Home commodities
+     were, for the most part, stamped with the elector's arms,
+     and all which were not so stamped were prohibited. The
+     prohibition was generally preceded by a notice that the
+     elector had himself established or improved a manufactory,
+     or that the guilds (_Innungen_) had entered complaints
+     against foreign competition. Not till 1682 did the idea
+     occur to impose a moderate excise on the home product to be
+     favored, and a much higher duty on the foreign one; thus in
+     the case of sugar. (_Mylius_, IV, 3, 2, 16.) Frederick I.
+     continued this system especially for the forty-three
+     branches of industry hitherto unknown, and the introduction
+     of which was contemporaneous with the reception of the
+     Huguenots. (_Stengel_, 3, 48, 208.) Frederick William I., in
+     1719 and 1723, threatened the exportation of wool, under
+     certain circumstances, with death. (_Mylius_, V, 2, 4, 64,
+     80.) The severity with which he insisted that his officials
+     and officers should wear only home cloth is characteristic;
+     and the fact that in 1719 he threatened tailors who worked
+     foreign cloth, with heavy money fines and the loss of their
+     guild-rights. At the same time all workers in wool were
+     freed from military duty, and capitalists who had loaned
+     money to wool manufacturers were given a preference (1729).
+     Frederick the Great, who continued nearly all this,
+     prohibited the exportation of Silesian yarn, with the
+     exception of the very coarsest and finest, as well as of
+     that which had been bleached. Its exportation was allowed to
+     Bohemia only, because from here the linen went back again to
+     Silesia to be bleached and sold there. (_Mirabeau_, De la
+     Monarchie Pruss., II, 54.)]
+
+     [Footnote A3-6-6: Important beginnings of a protective
+     system in Sweden, under Gustavus Wasa, and again under
+     Charles IX., the violent opponent of the supremacy of the
+     nobility (_Geijer_, Schwed. Gesch. II, 118 ff., 346); while
+     Christian II., of Denmark, failed in all such endeavors. The
+     founder of the Russian industrial protection was Peter the
+     Great, who was in complete accordance with the native
+     theorist, _I. Possoschkow_: Compare _Brückner_, in the
+     Baltische Monatschrift, Bd. VI (1862), and VI (1863). Spain
+     first adopted a real protective system under the Bourbons.
+     The export prohibitions issued mostly at the request of the
+     cortes between 1550 and 1560 (_Ranke_, Fürsten und Völker,
+     I, 400 ff.) must be considered as a remnant of the medieval
+     scarcity-policy, induced principally by a misunderstood
+     depreciation of the precious metals.]
+
+
+SECTION VII.
+
+HOW LONG IS PROTECTION JUSTIFIABLE?
+
+All rational education keeps in view as its object, the subsequent
+independence of the pupil. If it desired to continue its guardianship,
+the payment of fees, etc., until an advanced age, it would thereby
+demonstrate either the pupil's want of capacity or the absurdity of its
+methods. The industrial protective system also can be justified as an
+educational measure only on the assumption that it may be gradually
+dispensed with; that is, that, by its means, there may be a prospect of
+attaining to freedom of trade.[A3-7-1] In the case of all highly
+civilized nations, the presumption is in favor of freedom of trade, both
+at home and abroad, and in such nations, the desire for a protective
+system must be looked upon as a symptom of disease.[A3-7-2] [A3-7-3] It
+is true, that recently the inferiority of young countries, even when
+inhabited by a very active and highly educated people, is greatly
+enhanced by the improvement of the means of communication. But this is
+richly compensated for by the simultaneous instinct towards emigration,
+both of capital and workmen from over-full, highly industrial countries;
+whereas, the prohibitions by the state, that extreme of exportation
+embargoes, formerly so frequently resorted to, it is no longer possible
+to carry out.[A3-7-4] [A3-7-5] Now the young country has the advantage of
+being able immediately to use the newest processes of labor, etc.,
+without being hindered by the existence there of earlier imperfect
+apparatus. It is certain that international freedom of trade must be of
+advantage to a people's nationality the moment they have attained to the
+maturity of manhood, for the reason that they are thereby forced to make
+the most of that which is peculiar to them. Care must be taken not to
+confound many-sidedness with all-sidedness.[A3-7-6] The best "protection
+of national labor" might consist in this, that all products should be
+really individually characteristic (artistic), all individuals really
+national, and national also in their tastes as consumers. This ideal has
+been pretty closely approximated to by the French in respect to
+fashionable commodities, so that they will hardly purchase such from
+abroad, even without a protective tariff; and the cultured of most
+nations in respect to works of art. Here, too, it is worth considering,
+that even the most national of poets, when they are great enough to rise
+to the height of the universally human, possess the greatest
+universality.[A3-7-7]
+
+     [Footnote A3-7-1: _Colbert_ advised the companies in Lyons
+     to consider the privileges granted them only as crutches, by
+     means of which they might learn to walk the soonest
+     possible, it being the intention afterwards to do away with
+     them. (Journ. des Econom., Mai, 1854, p. 277.) Thiers said,
+     in the chamber of deputies, in 1834: _Employé comme
+     représailles, le tarif est funeste; Comme faveur, il est
+     abusif; Comme encouragement à une industrie exotique, qui
+     n'est pas importable il est impuissant et inutile. Employé
+     pour protéger un produit, qui a chance de réussir, il est
+     bon; mais il est bon temporairement, il doit finer quand
+     l'education de l'industrie est finie, quand elle est
+     adulte._ _Schmitthenner_, Zwölf Bücher vom Staate, I, 657
+     ff., admits that full freedom of trade between England and
+     Germany would be advantageous to the world in general; but
+     that England might here secure the entire gain even at the
+     cost of Germany, in part. _Schmitthenner's_ view is
+     distinguished from that of _List's_, against which
+     _Schmitthenner_ zealously seeks to maintain the priority of
+     his own (II, 365), disadvantageously enough, by this, that
+     it contains no pledge of subsequent freedom of trade.
+     _List_, on the contrary, considers universal freedom of
+     trade, not only as the ideal, but also as the object which
+     is to be striven for by temporary limitations on trade; an
+     object, indeed, attainable only where there are a great many
+     nations highly developed and in an equal degree, just as
+     perpetual peace supposes a plurality of states equal in
+     power. Ges. Schr., II, 35; III, 194. Compare, on this point,
+     _Hildebrand_, N. O. der Gegenwart und Zukunft, I, 87. That
+     _Carey_ advocates a perpetual protective tariff is connected
+     with his absolute inability to conceive the Malthusian law
+     of population. (_Held_, Carey's Socialwissenschaft und das
+     Merkantilsystem, 1866, p. 166.)
+
+     Thus, for instance, the prohibition of foreign cloths in
+     Florence begins in 1393, that is, at a time when the
+     protected industry had long been developed, so that its
+     products were exported on a great scale, but when it began
+     to fear the young, vigorous, competition of the Flemings.]
+
+     [Footnote A3-7-2: How frequently it happened in the
+     conquests of the French revolution or of Napoleon, or when
+     the Zollverein was extended, that two territories, now
+     united to each other, feared an outflanking of their
+     industries, each by the other, whose competition was
+     formerly excluded; and that, afterwards, the abolition of
+     the barriers to trade worked advantageously to both parties!
+     (_Dunoyer_, Liberté du Travail, VII, ch. 3.) The Belgian
+     manufacture of (coarse) porcelain flourished under Napoleon,
+     spite of the competition of Sèvres. It declined after the
+     separation from France, notwithstanding protective duties of
+     20 per cent. (_Briavoinne_, Industrie Belge, II, 483.) The
+     French cotton manufacturers feared, in 1791, that the
+     incorporation of Mülhausen would necessarily produce their
+     downfall.]
+
+     [Footnote A3-7-3: In Venice, the relations of a workman who
+     had emigrated and refused to return home were imprisoned. If
+     this was of no avail, the emigrant was to be put to death.
+     (_Daru_, Hist. de V., III, 90.) It is said that this was
+     still the practice in 1754. (Acad. des Sc. mor. et polit.,
+     1866, I, 132.) Florence, in 1419, threatened its subjects
+     who carried on the brocade or silk industry, in foreign
+     countries, with death. Similarly, when the Nürnberg
+     Rothgiessers were prohibited, under pain of the house of
+     correction, showing their mills to a stranger. (_Roth_,
+     Gesch. des N. Handles, III, 176.) In Belgium, enticing
+     manufacturers of bone lace to emigrate was made punishable.
+     Austrian prohibition for glass-makers, in 1752; for
+     scythe-makers, in 1781. Colbert also approved of the
+     imprisonment of manufacturers desirous to emigrate.
+     (Lettres, etc., II, 568 ff.) By 5 Geo. I., ch. 28, and 23
+     Geo. II., ch. 13, the soliciting of an artificer to emigrate
+     to foreign countries is punished by one year's imprisonment
+     and £500 fine; and even workmen who do not respond to a call
+     home within six months lose all their reachable property in
+     England, and their capacity to inherit there. Every emigrant
+     had to certify that he was no artificer. The only effect of
+     this law was that the emigration of artificers to the United
+     States was made by the way of Canada; the poorer ones, at
+     most, were kept back by the cost of this circuitous route.
+     Hence the law was repealed in 1825. Compare Edinb. Rev.,
+     XXXIX, p. 341 ff.]
+
+     [Footnote A3-7-4: The first English prohibition of the
+     exportation of machinery was made in reference to the Lee
+     stocking frame, in 1696, the second in 1750; whereupon
+     others followed very rapidly after 1774. As late as 1825,
+     prohibitions of the exportation of a large number of
+     machines and of parts of machines were still in force; but
+     the Board of Trade might dispense with them. Here it was
+     considered whether a greater disadvantage was caused to the
+     industries by permitting the exportation, or to the
+     manufacturers of the machines by prohibiting it. _Porter_,
+     Progress, I, 318 ff., recommends full freedom of exportation
+     especially for the reason that Englishmen can now procure
+     all new machines, and sell the old ones to foreign
+     countries. On the other hand, a French manufacturer
+     purchased old machines _parce que sous le système prohibitif
+     je gagnerai encore de l'argent avec ces metiers_. (_Rau_,
+     Lehrbuch, II, § 209.) Similar cases in the United States.
+     _Cairnes_, Principles, p. 485.]
+
+     [Footnote A3-7-5: _Bandrillart_, Manuel, p. 299. Every
+     nation needs, in order to become fully mature, an industry
+     of some magnitude. But it may just as well be the silk
+     industry as the cotton which shall lead to this maturity;
+     and when the nation has much greater natural capacity for
+     the former than for the latter, it would do well to reach
+     its object by the shortest course.]
+
+     [Footnote A3-7-6: _Riehl_, die deutsche Arbeit, p. 102 ff.,
+     107. Shakespeare, the most English of Englishmen, and yet
+     the most universal of poets! During the last centuries of
+     the middle ages most nations had come to have national and
+     even local costumes which were in strong contrast with the
+     universality of fashions during the age of chivalry. This
+     must have greatly contributed to the advancement of
+     industry, even before the introduction of the state
+     protective system.]
+
+     [Footnote A3-7-7: How much more convenient it is for the
+     statesman, when he does not need to give any thought to the
+     education of industry, is shown, especially by the great
+     difficulty of striking precisely the proper height of a
+     protective tariff. If too low, it fails of its object; and
+     so, likewise, if too high; because then, in a very
+     unpedagogical way, it lulls one into a lazy security. And
+     how impossible it is to make the tariff vary with every
+     variation in the cost of production, in price, etc.; as List
+     desired it should, not, however, without a good deal of
+     variation in his own views. (_Roscher_, Gesch. der N. O.,
+     II, 989 seq.) How greatly would not List have been obliged
+     to limit his assumptions, if he had lived to see the
+     universal exposition of 1862, at which English connoisseurs
+     expressed their pleasure that England had not remained
+     behind France and Germany in locomotive building? (Ausland,
+     19 Oct., 1862.) Hence _Schäffle_ opposes all protective
+     duties as an educational measure, because the "protected"
+     classes, by means of diets (_Landtage_), newspapers, etc. so
+     greatly influence legislation; that is, the educator is
+     influenced by the pupil! (System, 409 ff.) The usual
+     calculation of the cost for home undertakers (_Unternehmer_)
+     can always only strike the average, and hence it is too high
+     for some and too low for others. (_Rau_, Lehrbuch, II, §
+     214.) It frequently occurs that large manufacturers already
+     existing desire a low protective tariff to facilitate their
+     competition with foreign countries, possible even without
+     such tariff, but not high enough to encourage others to
+     compete with them at home.]
+
+
+SECTION VIII.
+
+INDUSTRIAL-PROTECTIVE POLICY IN PARTICULAR.
+
+If it be once established generally that an industry is to be
+artificially promoted, and if there be question only of a choice between
+the different measures to be adopted to thus promote it,
+moderate[A3-8-1] import duties are not only the most equable, least
+subject to abuse, but also attended by the greatest number of secondary
+advantages. Here the sacrifice is imposed on all the consumers of the
+"protected" commodity, that is, on the entire people, to the extent that
+they come in contact with the commodity in question. Export duties on
+raw materials, on the other hand, compel one single class of the people
+to make sacrifices in order to advance the favored industry.[A3-8-2]
+Export premiums for commodities on which labor has been expended are
+distinguished from import duties as the offensive from the defensive:
+the former promote the artificial trade, the trade which has gone beyond
+its natural basis, the latter curtail it.
+
+Premiums, advances without interest, gifts of machinery etc., to persons
+engaged in industry would operate very usefully under an omniscient
+government.[A3-8-3] But they generally fall to the lot not of the most
+skillful manufacturers, but of the most acceptable supplicants, who now
+are doubly dangerous to the former as competitors.[A3-8-4] The same is
+true to a still greater extent of monopolies granted to undertakings
+which it is intended to promote.[A3-8-5] They require, at least, to be
+vigilantly superintended in case of sale from one person to another;
+otherwise the individual to whom they were first granted is very apt to
+withdraw with the capitalized value of the privilege accorded, and his
+successors, loaded with a heavy debt in the nature of a mortgage, to
+derive no advantage from it.[A3-8-6]
+
+Further, import duties, besides the fiscal advantage which they afford,
+have the police advantage that they may, like quarantine provisions,
+prevent somewhat the inroads of many economic diseases: thus, for
+instance, gluts of the market, and still more, the severe chronic
+disease of ruinously low wages.[A3-8-7] But only very moderate hopes
+from protective duties should be entertained in all such respects as
+these.[A3-8-8]
+
+Prohibition proper operates, as a rule, very disastrously.[A3-8-9] It
+spoils those engaged in industry by a feeling of too great security
+(mortals' chiefest enemy: Shakespeare). It may even lead to complete
+monopoly, when the industry requires very large means and the country is
+small. The inducement to smuggling is peculiarly great here. But even
+duties, so high that they far exceed the insurance premium of smuggling,
+can be of very little advantage either to industry or to the exchequer.
+They can only promote the smuggling trade. However, the repeal of an
+import prohibition or the abolition of a tariff approaching to a
+prohibition should be announced long enough in advance to enable the
+capital invested in the protected industry to be withdrawn without too
+heavy a loss.
+
+     [Footnote A3-8-1: In general, _Mäser_ was in favor of
+     _Colbert_, and opposed to _Mirabeau_. (P. Ph. II, 26.) He
+     ridicules the prohibitions of the exportation of raw
+     material by saying that not only flax-seed, flax-yarn, but
+     also the linen, must remain in the country. As Raphael Mengs
+     once ennobled four ells of linen to a value of 10,000
+     ducats, a hundred Mengs should be sent for, to the end that
+     all the linen should be exported painted. (v. 25.)]
+
+     [Footnote A3-8-2: _Rau_, Lehrbuch, II, § 214, would prefer
+     to tolerate state premiums (politically so dangerous),
+     rather than protective duties, because, in the case of the
+     former, the magnitude of the assumed sacrifice may be
+     exactly estimated in advance. Similarly, _Bastiat_,
+     Sophismes, ch. 5.]
+
+     [Footnote A3-8-3: Many striking examples in _List's_
+     Zollvereinsblatt, 1843, No. 47.]
+
+     [Footnote A3-8-4: Under _Colbert_, the granting of a
+     monopoly had frequently no effect but to ruin an already
+     existing rural industry in the interest of a city
+     manufactory. Thus, in the case of lace, in Bourges and
+     Alençon, and soap in the south, etc. The upshot of the
+     matter in some places was simply that the carriers on of
+     industry on a small scale were allowed to carry on their
+     industries in consideration of a payment made to the owners
+     of the privilege. (Journ. des Econ., 1857, II, 290.) The
+     King of Denmark bought back, in 1756, at a high price,
+     industrial privileges which his predecessors had granted
+     gratis. (_Justi_, Polizeiwissensch., § 444.) The Colbert
+     monopoly of the Hollander v. Robais (1665), who was the
+     first to manufacture fine cloths in France, was not
+     abolished until 1767. (Encycl. Mech. Arts et Manuf., II,
+     345.)]
+
+     [Footnote A3-8-5: Thus, for instance, in 1863, the
+     apothecary shops of the governmental district of Breslau had
+     a value of 2,791,227 thalers, of which the land and
+     inventories of stock were only 29 per cent. The concessions
+     represented 71 per cent. The sick, in the entire state of
+     Prussia, were obliged to contribute 1,780,000 thalers a year
+     to compensate these monopolists. Compare _Brefeld_, Die
+     Apotheken, Schutz oder Freiheit? (1863).]
+
+     [Footnote A3-8-6: _Hermann_, in his review of Dönniges'
+     System des freien Handels und der Schützzölle (Münch. G. A.
+     Sept. und Octbr., 1847) calls attention to the point that a
+     decrease of the cost of production, by merely lowering
+     wages, is no gain to the national resources, but only an
+     altered distribution of them, for the most part a very
+     unfavorable one. But when a nation is advancing on this
+     road, it may strengthen its exportation by such means, as it
+     might granting export premiums at the expense of the
+     workmen. This would lead, on the supposition of entire
+     freedom of trade, to a corresponding depression of the lower
+     classes in other countries; and against such contagion a
+     protective tariff may operate in a manner similar to the
+     quarantine. This is much exaggerated by _Colton_, Public
+     Economy of the United States (1849), p. 65, 178. America
+     needs a protective tariff more than any other nation,
+     because of its dear workmen and capital. In Europe, the
+     upper classes rob labor of its product, while in America,
+     labor itself enjoys its products. Free trade would lower
+     America to the level of Europe.]
+
+     [Footnote A3-8-7: Severe crisis in the woolen industries of
+     America in 1874 ff., spite of an enormously high protective
+     tariff. The financial utility of a protective tariff can be
+     scarcely great, because the intention of the tariff to
+     permit as little as possible to be imported, and of the tax
+     to levy as much as possible, are irreconcilable.]
+
+     [Footnote A3-8-8: Frederick II., in 1766, forbade the
+     importation of 490 different commodities which, up to that
+     time, had only paid high duties. (_Mirabeau_, Monarchie,
+     Pr., II, 168.) In 1835, France still had 58 import and 25
+     export prohibitions.
+
+     They might, by way of exception, become necessary, in case a
+     foreign state should desire to make our protective duties
+     illusory by export premiums. But the exportation of Prussian
+     cotton stuffs, for instance, has increased, with a moderate
+     tariff, much more than the Austrian, with full prohibition.
+     The English silk manufactures were, so long as the
+     prohibition continued, inferior to the French, even in
+     respect to the machinery system. (_McCulloch_, Statist., I,
+     681.)]
+
+     [Footnote A3-8-9: In the case of circulating capital this is
+     generally done rapidly. The machines would have worn out,
+     and care is taken not to renew them. Buildings also can, for
+     the most part, serve other purposes. The most difficult
+     thing of all is for the masses of men, gathered together at
+     the principal seats of industry, artificially created, to
+     distribute themselves. Between the two rules: "No leap, but
+     gradual transition," and "cut the dog's tail off at once,
+     not piecemeal," the right mean is struck in the abolition of
+     a prohibitive protection, when, what it is intended to do,
+     is announced long in advance without maintaining vain hopes,
+     and a long space of time is left to enable people to make
+     their arrangements accordingly. This plan was followed in a
+     model manner in reference to the English silk prohibition,
+     under Huskisson. It was announced as early as 1824 that
+     protective duties of 30 per cent. would on the 5th of July,
+     1826, take the place of the prohibition. The duty on raw
+     silk was immediately reduced from 4 sh. to 3d. per pound,
+     and after a time, even to 1d., which so increased the demand
+     that the number of spindles rapidly increased from 780,000
+     to 1,180,000. During the 10 years from 1824, the importation
+     of raw and twisted silk amounted to about 1,941,000 pounds,
+     and in the 10 years after, to 4,164,000 pounds. The English
+     exports of silk wares had before 1824 a value of £350,000 to
+     £380,000; in 1830, of over £521,000; in 1854, of almost
+     £1,700,000; in 1863, of £3,147,000. Compare _Porter_,
+     Progress, I, 255 ff. On the other hand, Austria was
+     over-hasty when it went over from the prohibition of foreign
+     silk stuffs to duties of 180 florins per cwt. (Oest.
+     Weltausstellungsbericht von 1867, IV, 140.)]
+
+
+SECTION IX.
+
+WHAT INDUSTRIES ONLY SHOULD BE FAVORED.
+
+That as a rule only such industries should be favored which, by reason
+of the natural capacities of the country and of the people, have a good
+prospect of being able soon to dispense with the favors accorded, would
+be self-evident were it not for the fact that it has been ignored a
+thousand times in practice.[A3-9-1] It is especially necessary to take
+the natural station (_Standort_)[A3-9-2] as well as the natural
+succession of the different branches of industry into consideration.
+Half manufactured articles of foreign raw material should not be
+protected until the entire manufactured article has completely outgrown
+protection; which condition manifests itself most clearly by a strong,
+independent exportation of the article.[A3-9-3] The celebrated tariff
+controversy between the cotton spinners and the weavers in the
+Zollverein was probably without any conscious plan, but certainly to the
+well-being of German industry, settled essentially in accordance with
+these principles. In such struggles of the different stages of a branch
+of production with one another, it is necessary not only mechanically to
+weigh the number of workmen, the amount of capital, etc., on both sides,
+but also organically the capacity for development and the influence of
+both sides on the entire national life.[A3-9-4] Half-manufactured
+articles of a very superior quality should not be kept away, since by
+promoting commodities of the first quality they have an educational
+influence on the whole industry. Thus, in the case of the duties on
+iron, it should not be forgotten, that they enhance the price of all
+instruments of industry.[A3-9-5] Just as objectionable are protective
+duties for machines or for intellectual elements of training.[A3-9-6]
+
+     [Footnote A3-9-1: _Torrens_ calls an industry which can, in
+     the long run, bear no competition: "A parasitical formation,
+     wanting the vital energies while permitted to remain, and
+     yet requiring for its removal a painful operation." (Budget,
+     p. 49.) Especially frequent in the case of
+     luxury--industries in which the court was interested. The
+     oysters which were sent for to Venice under Leopold I., in
+     order to stock the artificial beds in the garden of the
+     president of the Exchequer reached Vienna, dead. (_Mailath_,
+     Gesch., IV, 384.) As to how Elizabeth, and Catharine II. in
+     Russia, desired to compel the cultivation of silk, and
+     caused the peasantry to be levied like recruits for that
+     purpose; as to how the latter petitioned against it in a
+     thousand ways, and endeavored to destroy the silk worms,
+     mulberry trees, etc., see _Pallas_, Reise durch das südliche
+     Russland, I, 154 ff. Frederick II.'s silk-protection is
+     characterized mainly by the order for church-inspectors to
+     keep tables (_Tabellen_) concerning it, and to look after
+     clergymen's and teachers' knowledge of the cultivation of
+     silk. Tragico-comic endeavors of the Shah Nasreddin to
+     establish manufactories in Persia: _Pollak_, Persien, II,
+     138 ff. One of the principal effects of the Mexican
+     protective system, since 1827, was the establishing of
+     manufactories on the coast only to cover up smuggling.
+     (_Wappäus_, Mexiko, 83 ff.)]
+
+     [Footnote A3-9-2: When Holland stunted its bleach-yards by
+     high duties on linen, an industry in which it must always
+     remain behind many other nations, was favored at the expense
+     of another for which it possesses incomparable advantages.]
+
+     [Footnote A3-9-3: Even before _Colbert's_ time, French
+     jewelry was prepared from Italian gold wire, and exported in
+     great quantities. The mere rumor that it was contemplated to
+     impose heavy duties on gold wire, provoked plans for the
+     removal of the industry from Geneva to Avignon.
+     (_Farbonnais_, F. de Fr., I, 275.) When France protects its
+     raw silk, it makes the purchase of raw material in Italy
+     cheaper to all its competitors.]
+
+     [Footnote A3-9-4: According to _L. Kühne_ (Preuss.
+     Staatszeitung, 17 Decbr., 1842), the cotton yarn consumption
+     of Germany amounted to 561,000 cwt. per annum, of which the
+     home spin-houses yielded 194,000 cwt. Weaving employed
+     311,500 workmen with 32,250,000 thalers wages, spinning only
+     16,300 workmen with a little over 1,000,000 thalers wages.
+     Even if the entire yarn-want (_Garnbedarf_) were spun in the
+     interior, yet spinning would stand to weaving only as 1:5 in
+     the number of workmen, and as 1:8 in the amount of wages.
+     Hence the tariff of the Zollverein defended by Prussia,
+     placed the tariff on tissues (_Gewebe_) 25 times as high as
+     on yarn, while their prices stood to each other as 1:3-4.
+     _List_ (Zollvereinsblatt, 1844, No. 40 ff.) objected that
+     only by spinning industries of its own could Germany's
+     cotton-tissue industries become independent; since it was a
+     very different thing to procure the material to be worked
+     from the many mutually competing cotton countries, rather
+     than from an intermediate hand; and indeed, from the most
+     powerful industrial country of the world. (Compare, however,
+     _Faucher's_ Vierteljahrsschrift, 1863, Bd. I.) Besides,
+     there is the great importance of the spinning industries, in
+     order to come into immediate connection with America, the
+     most rapidly growing market, to influence Holland, and also
+     to advance navigation and the manufacture of machinery. In
+     opposition to _Kühne's_ calculation, _List_ says: A man who
+     lost eyes, ears, fingers and toes, would undergo only a
+     small loss of weight.]
+
+     [Footnote A3-9-5: Special calculations on this matter in
+     _Junghanns_, Fortschritt des Zollvereins (1849), I, 179.]
+
+     [Footnote A3-9-6: Frederick II. threatened the prosecution
+     of one's studies at a foreign university with a lifelong
+     exclusion from all civil and ecclesiastical offices; and, in
+     the case of the nobility, even with the confiscation of
+     their property. (_Mylius_, C. C. M. _Contin_, IV, 191,
+     Noviem C. C., I, 97.)]
+
+
+
+
+INDEX TO NAMES OF AUTHORS
+
+CITED IN THE PRINCIPLES.
+
+[The references are to the sections.]
+
+
+A.
+
+Académie française, 42.
+
+Agricola, 116, 120.
+
+Ahrens, 16, 77.
+
+Algarotti, 49.
+
+Anacharsis, 116.
+
+Anaxagoras, 38.
+
+Anderson, A. (Origin of Commerce), 188.
+
+Anderson, J. (Nature of Corn Laws), 152, 154.
+
+Anonymous, authors of:
+
+  ---- Britannia languens, 123, 196.
+  ---- Discourse of Trade, Coyn and Paper-Credit, 48, 50, 90, 108, 123.
+  ---- England's great Happiness, 196.
+  ---- Interest of Money mistaken, 188.
+  ---- Paying old Debts without new Taxes, 49.
+  ---- Virginia's Verger, 9.
+  ---- (W. S.) Compendious or brief Examination of certain ordinary
+        Complaints, 137.
+
+Antisthenes, 225.
+
+Antoninus, 191.
+
+Arbuthnot, 135.
+
+Aretin, v., II, 118.
+
+Aristippos, 225.
+
+Aristophanes, 79, 202.
+
+Aristotle, 1, 2, 5, 9, 14, 36, 38, 43, 49, 57, 63, 69, 70, 75, 79, 81,
+100, 107, 116, 117, 190, 205, 250, 251, 253.
+
+Arnd, 20.
+
+Arnold, 184.
+
+Asgill, 49.
+
+Augustinis, de, 51.
+
+Auxiron, 154.
+
+
+B.
+
+Babbage, 57, 58, 106.
+
+Babœuf, 79, 81.
+
+Bacon, 13, 21, 24, 50, 55, 98, 108, 114, 191, 204, 254.
+
+Bandini, 123, 188.
+
+Banfield, 115, 157, 205, 263.
+
+Bastiat, 2, 5, 9, 31, 35, 42, 54, 58, 81, 82, 84, 87, 97, 116, 117, 152,
+167, 185, 210, 238, 242, 243.
+
+Baudrillart, 21, 242.
+
+Baumstark, 20, 154.
+
+Bazard, 11, 53, 67, 84, 86, 90, 97, 205, 207.
+
+Beaumont, de, 250.
+
+Beccaria, 19, 49, 57, 79, 125, 126, 140, 256, 263.
+
+Becher, J. J., 98, 114, 214, 254.
+
+Beckmann, J., 225.
+
+Bentham, J., 12, 71, 193, 232, 250, 256.
+
+Berg, v., 76.
+
+Berkeley, 9, 47, 57, 95, 116, 123, 212, 214, 231, 254, 255.
+
+Bernhardi, v., 147, 154.
+
+Bernhardinus, 191.
+
+Bernoulli, 3, 246, 248.
+
+Besold, 137, 191.
+
+Bible, 11, 16, 36, 41, 63, 69, 81, 84, 190, 202, 204, 218, 225, 239,
+245, 255, 264.
+
+Biel, 22, 116, 120.
+
+Blackstone, 42, 86 87, 199.
+
+Blanc, L., 81, 82, 98, 167, 178.
+
+Blanqui, 169.
+
+Böckh, 135, 137.
+
+Boden, 183.
+
+Bodin, J., 37, 137, 254.
+
+Bodz-Reymond, 97.
+
+Boisguillebert, 1, 9, 12, 49, 96, 97, 100, 111, 117, 123, 154, 214, 215.
+
+Booth, 243.
+
+Bornitz, 3, 114.
+
+Bossuet, 77, 191.
+
+Botero, G., 9, 210, 241, 242, 245.
+
+Boussingault, 32, 34.
+
+Boxhorn, 39, 94.
+
+Brentano, 166, 175, 176, 177.
+
+Bridge, 238.
+
+Brissot, 77.
+
+Broggia, 9, 116.
+
+Buat, 16.
+
+Buchanan, 152, 153, 154, 164.
+
+Buckle, 209, 263.
+
+Bülau, 17, 97.
+
+Buonarotti, 79.
+
+Buquoy, Count, 22, 34, 129, 147.
+
+Burke, 11, 220; II, 5, 106, 140, 155.
+
+Büsch, 2, 9, 42, 95, 96, 117, 123, 126, 170, 183, 263.
+
+
+C.
+
+Cabanis, 37.
+
+Cabet, 79, 82, 250.
+
+Cæsar, Jul., 16.
+
+Calvin, 49, 79, 114, 191.
+
+Campanella, 79.
+
+Canard, 22, 42, 47, 95, 101, 106, 123, 152, 188, 195, 215.
+
+Cancrin, Count, 64, 98.
+
+Cantillon, 47, 49, 90, 98, 106, 123, 126, 128, 137, 144, 154, 161, 167,
+185, 193.
+
+Carey, 5, 42, 148, 154, 155, 157, 166, 172, 199, 214, 243, 253, 263.
+
+Carli, 137.
+
+Casper, 246.
+
+Cato, Cens., 43, 190, 222.
+
+Cazaux, 22, 127, 145.
+
+Celtes, 41.
+
+Cervantes, 55.
+
+Chadwick, 218, 248.
+
+Chalmers, Th., 216, 217, 242.
+
+Cherbuliez, 202.
+
+Chevalier, M., 11, 40, 66, 70, 89, 97, 116, 120, 121, 124, 128, 129,
+136, 137, 139, 142, 143, 173, 199, 216, 217, 220.
+
+Child, Sir J., 42, 97, 98, 114, 123, 154, 157, 188, 192, 193, 197, 199,
+241, 242, 254.
+
+Chrysippos, 250.
+
+Cibrario, 17, 137.
+
+Cicero, 9, 46, 49, 75, 100.
+
+Cieszkowsky, 89.
+
+Clemens, Rom., 81.
+
+Cleonard, 54.
+
+Cliquot de Blervache, 108.
+
+Cobden, R., 98.
+
+Coke, R., 196.
+
+Colbert, 232, 255.
+
+Colton, 12, 25, 42, 116, 201.
+
+Columella, 40, 59, 71.
+
+Comte, Ch., 37, 71.
+
+Condillac, 21, 49, 107, 129.
+
+Condorcet, 263.
+
+Considérant, 51, 88, 183.
+
+Constant, B., 168.
+
+Contzen, Ad., 49, 226.
+
+Cooper, Th., 12.
+
+Corpus Juris civilis, 69, 83, 117, 201.
+
+Corpus Juris canonici, 41.
+
+Corvaja, 82.
+
+Cournot, 22.
+
+Court, P. de la, 94, 97, 98, 108, 114, 185, 254.
+
+Culpeper, Sir Th., 154, 188, 192, 199.
+
+
+D.
+
+Dankwardt, 16, 56.
+
+Dante, 191, 250.
+
+Darjes, 19, 76, 96, 106, 192, 254.
+
+Darwin, 242.
+
+Davanzati, 116, 123.
+
+Davenant, 9, 10, 21, 97, 103, 116, 124, 157, 242, 254.
+
+Decker, Sir M., 10, 41.
+
+Defoe, D., 222.
+
+Demosthenes, 21, 42, 43, 89, 231.
+
+Diderot, 57.
+
+Dietzel, C., 42, 90.
+
+Diogenes, 225.
+
+Dithmar, 19.
+
+Dohm, 49, 263.
+
+Doubleday, 242.
+
+Drobisch, 13, 129.
+
+Droz, 46, 92, 214.
+
+Dufau, 18.
+
+Dumont, 225.
+
+Dunoyer, 16, 17, 21, 26, 38, 42, 50, 54, 111, 145, 178, 203, 216, 242.
+
+Dupont de Nemours, 5, 97, 108, 147.
+
+Duport, St. Clair, 139.
+
+Dutot, 96, 100, 116, 212.
+
+
+E.
+
+Eden, Sir F. M., 57, 140, 213.
+
+Edinburgh Review, 116, 154, 176, 242.
+
+Eiselen, 51, 95, 195.
+
+Enfantin, 250.
+
+Engel, 161, 162, 214, 240, 243, 246, 248.
+
+Epicharmos, 47.
+
+Erasmus, 41, 79, 191.
+
+Euler, 238.
+
+Euripides, 37, 226.
+
+Everett, 243.
+
+
+F.
+
+Fallati, 18, 21.
+
+Faucher, J., 1.
+
+Faucher, L., 178, 215.
+
+Faust, M., 137.
+
+Faxardo, Saavedra, 9, 254.
+
+Fénélon, 225.
+
+Ferguson, 11, 16, 21, 44, 50, 63, 115, 210, 217, 224, 225, 226, 255.
+
+Fichte, J. G., 12, 82, 97, 123, 129, 204, 250.
+
+Filangieri, 225, 254.
+
+Fix, 4.
+
+Fleetwood, 143.
+
+Forbonnais, 68, 97, 116, 123, 173, 190, 200, 214, 254, 255.
+
+Forster, 79.
+
+Fortrey, Sam, 196.
+
+Fourier, Ch., 51, 66, 81, 85, 97, 183, 207, 250.
+
+Fox, 77.
+
+Franklin, B., 12, 33, 41, 42, 49, 71, 89, 97, 98, 107, 116, 128, 173,
+178, 203, 218, 219, 225, 232, 241, 242, 255.
+
+Frégier, 223.
+
+Friedländer, 4.
+
+Friedrich II. (Emperor), 49, 83.
+
+Friedrich, M., 16, 114, 244, 254.
+
+Fullarton, 123, 125.
+
+Fuoco, 11, 22, 121, 146, 154, 202.
+
+
+G.
+
+Galiani, 8, 9, 42, 47, 98, 100, 104, 116, 120, 126, 128, 129, 140, 142,
+167, 187, 197.
+
+Gallatin, 136.
+
+Ganilh, 12, 42, 51, 52, 55, 116, 123, 147, 180, 188, 196, 214, 216.
+
+Garcilasso, de la Vega, 9.
+
+Garnier, 16, 50, 137.
+
+Garve, 30, 50, 52, 99, 115, 173, 231.
+
+Gasparin, 161.
+
+Gavard, 17.
+
+Gee, 116.
+
+Geiler v. Kaisersberg, 39.
+
+Genovesi, 4, 16, 64, 97, 102, 123.
+
+Gerstner, 253.
+
+Gessler, 261.
+
+Gibbon, 234.
+
+Gioja, 2, 30, 42, 47, 51, 64, 191.
+
+Gobbi, 32.
+
+Godwin, 243, 250, 254.
+
+Goethe, 11, 25, 36.
+
+Goldsmith, 254.
+
+Gournay, 49, 108.
+
+Graham, 243.
+
+Graswinckel, 87.
+
+Gratian, 47.
+
+Graumann, 125.
+
+Graunt, 245.
+
+Gray, 243.
+
+Gregorius Tolosan, 48, 55.
+
+Grotius, H., 77, 87, 187, 191.
+
+Guérard, 143.
+
+Günther, 194.
+
+
+H.
+
+Hackluyt, 9.
+
+Haller, K. L. v., 14, 256.
+
+Hamann, 117.
+
+Hamilton, 90, 152.
+
+Hanssen, 40, 126, 139, 140, 144.
+
+Harless, 81.
+
+Harrington, J., 98, 205, 253.
+
+Harris, 47, 57, 128, 180.
+
+Hegel, 3.
+
+Held, 146.
+
+Helferich, 86, 137.
+
+Helvétius, 11, 38, 231.
+
+Herakleides, 225.
+
+Herbart, 16, 22.
+
+Herbert, 101, 142.
+
+Herber, J. G. v., 265.
+
+Hermann, F. B. W., 1, 2, 3, 11, 17, 42, 43, 44, 45, 50, 51, 101, 103,
+106, 108, 110, 113, 115, 118, 129, 137, 142, 144, 145, 146, 147, 150,
+152, 153, 154, 166, 172, 180, 181, 183, 186, 196, 196a, 199, 204, 208,
+211, 212, 216, 219, 231, 246, 259.
+
+Herodotus, 37.
+
+Herrmann, E., 101, 207.
+
+Heuschling, 154.
+
+Hildebrand, B., 5, 13, 18, 79, 90, 146, 205.
+
+Hippokrates, 37.
+
+Hobbes, 42, 47, 50, 77, 107, 116, 118.
+
+Hoffmann, J. G., 97, 117, 119, 159, 205, 246, 249.
+
+Homer, 71, 250.
+
+Hood, 168.
+
+Hopkins, 159.
+
+Horn, 245, 247, 248, 254.
+
+Horneck, v. 19, 114, 116, 254.
+
+Howlett, 39.
+
+Hufeland, 2, 5, 12, 13, 46, 51, 59, 66, 87, 106, 107, 111, 118, 152,
+195, 221.
+
+Hugo, G., 24, 69, 81.
+
+Humboldt, A. v., 32, 36, 61, 98, 106, 136, 139, 214.
+
+Hume, D., 11, 36, 42, 47, 50, 71, 96, 98, 116, 117, 121, 123, 125, 126,
+137, 154, 185, 200, 214, 225, 242, 263, 264.
+
+Hutcheson, 5, 11.
+
+Hutton, U. v., 225.
+
+
+I.
+
+Iambulos, 79.
+
+Isokrates, 57, 231.
+
+Ivernois, Sir F. d', 239, 246.
+
+
+J.
+
+Jacob, W., 120, 135, 137.
+
+Jakob, H. L. v., 16, 49, 71, 106, 107, 127, 128, 147, 153, 195, 217,
+219.
+
+Jarke, 202.
+
+Jevons, 22, 129.
+
+Johnson, S., 93.
+
+Jones, R., 148, 154.
+
+Jselin, 67.
+
+Jung, 76, 156; II, 53, 101, 173.
+
+Justi, v., 9, 17, 116, 199, 237, 254.
+
+
+K.
+
+Kant, 11, 87.
+
+Kauffmann, 3, 9, 126.
+
+Kautz, 29.
+
+Kees, v. 194.
+
+King, Ch., 48.
+
+King, G., 103.
+
+King, Lord, 124.
+
+Knapp, 246.
+
+Knies, 4, 5, 6, 7, 11, 18, 28, 42, 89, 95, 107, 116, 117, 139, 169, 189,
+213, 265.
+
+Kosegarten, 117, 202.
+
+Kraus, 17, 128, 137, 197, 265.
+
+Krause, 170.
+
+Kröncke, 22, 147.
+
+Krug, L., 192, 254.
+
+Kudler, 49, 128.
+
+
+L.
+
+Lafitte, 202.
+
+Lang, 22.
+
+Laspeyres, 129.
+
+Lassalle, 45, 84, 163, 196a.
+
+Lau, 245.
+
+Lauderdale, Lord, 8, 9, 50, 51, 99, 103, 104, 106, 117, 128, 132, 147,
+200, 214, 217, 221, 231, 263.
+
+Lavergne, L. de, 139.
+
+Law, 42, 96, 101, 107, 115, 116, 117, 121, 123, 127, 254.
+
+Legoyt, 245.
+
+Leib, 48, 237b.
+
+Leibnitz, 13, 114, 140, 254.
+
+Leopoldt, II, 87, 145.
+
+Leplay, 65.
+
+Letronne, 137, 214.
+
+Libanios, 174.
+
+Liebig, J. v., 162.
+
+Linguet, 69, 174.
+
+List, Fr., 45, 46, 50, 64, 98, 154, 260.
+
+Liverpool, Lord, 118, 120, 142.
+
+Livy, 231.
+
+Locke, J., 5, 42, 47, 77, 100, 107, 116, 123, 129, 152, 154, 158, 188,
+191, 193, 194, 199, 254.
+
+Lotz, 5, 17, 20, 49, 50, 98, 99, 100, 115, 123, 128, 144, 166, 169, 195,
+202.
+
+Louis XIV., 221.
+
+Lowe, 129, 219.
+
+Lueder, 37, 50, 117.
+
+Luther, M., 41, 49, 57, 114, 128, 191, 254.
+
+
+M.
+
+Mably, 79, 81.
+
+Macculloch, 21, 40, 42, 43, 47, 50, 93, 107, 112, 113, 151, 164, 166,
+173, 188, 197, 212, 253, 264.
+
+Machiavelli, 21, 191, 238, 242, 244.
+
+Macleod, 89, 90, 107, 115, 123, 154.
+
+Macpherson, 143.
+
+Malthus, 3, 9, 33, 42, 43, 50, 55, 79, 80, 98, 100, 107, 111, 112, 128,
+129, 147, 152, 153, 157, 159, 163, 164, 166, 183, 185, 188, 205, 214,
+216, 217, 239, 241, 242, 243, 244, 247, 258, 263.
+
+Malthusians, 217, 254.
+
+Mandeville, 11, 57, 225.
+
+Mangoldt, v., 6, 16, 22, 30, 43, 51, 53, 59, 63, 71, 106, 129, 146, 149,
+153, 157, 167, 177, 181, 195, 205, 220.
+
+Mariana, 100, 114, 231.
+
+Marlo, K., 71, 79, 178, 207, 242, 250, 251, 258.
+
+Martineau, H., 176.
+
+Marx, K., 22, 42, 47, 107, 189.
+
+Masius, 237.
+
+Massie, 42.
+
+Melanchthon, 79, 100, 191.
+
+Mélon, 42, 90, 91, 97, 123, 225, 254.
+
+Menander, 174.
+
+Mendelsohn, 77.
+
+Menger, 2, 5, 101, 112.
+
+Mengotti, 50.
+
+Mercier de la Rivière, 22.
+
+Mercantilists, 9, 47, 48, 96, 97, 116, 121, 126, 225, 236, 254; new,
+116.
+
+Merivale, 172.
+
+Meyer, G., 246.
+
+Michaelis, 135.
+
+Mill, J., 47, 126, 216.
+
+Mill, J. S., 5, 20, 22, 34, 38, 40, 42, 46, 51, 74, 79, 88, 90, 97, 106,
+107, 111, 113, 121, 126, 150, 152, 153, 157, 163, 164, 166, 170, 172,
+176, 177, 178, 180, 183, 186, 188, 192, 195, 197, 213, 216, 221, 243,
+250, 259, 262, 264.
+
+Minard, 223.
+
+Mirabeau, Marq. de, 95, 97, 98, 117, 144, 147, 191, 210, 214, 254, 263.
+
+Mirabeau, Son, 256.
+
+Mischler, 1.
+
+Mittermaier, 94.
+
+Mohl, R., 242, 253, 258, 259, 262.
+
+Moleschott, 162.
+
+Moncada, 137.
+
+Montaigne, M., 98, 236.
+
+Montanari, 100, 116, 123, 125, 127, 188, 220.
+
+Montchrêtien de Vatteville, 9, 16, 48, 57.
+
+Montecuccoli, 16.
+
+Montesquieu, 37, 77, 89, 95, 116, 118, 123, 185, 192, 199, 205, 220,
+221, 237, 238, 240, 248.
+
+Moreau de Jonnès, 18.
+
+Morelly, 79.
+
+Morhof, 19.
+
+Moritz (Marschall von Sachsen), 255.
+
+Morrison, 176, 178.
+
+Mortimer, Th., 173, 175; II, 53.
+
+Morus, Th., 79, 98, 117, 147, 166.
+
+Möser, J., 42, 63, 69, 91, 117, 161, 169, 173, 191, 200, 226, 242, 248,
+254, 256.
+
+Müller, Ad., 3, 5, 11, 12, 22, 28, 42, 50, 55, 64, 116, 117, 120, 202.
+
+Mun, Th., 48, 116.
+
+Muret, 239.
+
+Murhard, K., 52.
+
+
+N.
+
+Nau, 19.
+
+Nebenius, 89, 120, 137, 150, 182, 184, 186, 187, 195, 199, 219.
+
+Necker, 103, 163, 204, 254.
+
+Neri, P., 100, 118, 120.
+
+Neumann, F. J., 6, 16, 100, 246.
+
+Newmarch, 137.
+
+Niebuhr, B. G., 92.
+
+North, Sir D., 9, 12, 47, 48, 97, 98, 114, 116, 121, 123, 152, 154, 179,
+191.
+
+
+O.
+
+Obrecht, 237a;
+
+II, 164.
+
+Oppenheim, 116.
+
+Oresmius, 116, 120.
+
+Ortes, 16, 34, 38, 117, 194, 217, 242.
+
+Owen, R., 66, 128.
+
+
+P.
+
+Pagnini, 100, 137.
+
+Paley, 50, 254.
+
+Palmieri, 9.
+
+Paoletti, 173.
+
+Paris, Comte de, 176.
+
+Patricius, 48, 246, 254.
+
+Paucton, 143.
+
+Paullus, Jul., 116.
+
+Perikles, 231.
+
+Périn, 11, 254.
+
+Petty, Sir W., 16, 47, 48, 57, 107, 116, 123, 127, 129, 154, 164, 193,
+214, 254.
+
+Philemon, 69.
+
+Physiocrates, 5, 8, 47, 49, 97, 101, 106, 128, 147, 154, 159, 214, 221,
+225, 254.
+
+(Pinto), 90, 98, 123, 221, 225.
+
+Pitt, 254.
+
+Plato, 9, 12, 21, 23, 42, 57, 61, 62, 79, 116, 190, 211, 250, 251.
+
+---- Eryxias, 116.
+
+Plinius (Major), 71, 79, 117, 120, 225, 231.
+
+Plotinos, 79.
+
+Plutarch, 73.
+
+Pölitz, 17; II, 194.
+
+Pollexfen, 9.
+
+Porter, 129, 205.
+
+Postlethwayt, 173.
+
+Price, 238.
+
+Prittwitz, v., 17, 51, 214, 263.
+
+Proudhon, 5, 66, 70, 77, 81, 82, 85, 97, 185.
+
+Puchta, G. F., 11, 14.
+
+Purves, 253.
+
+
+Q.
+
+Quesnay, 42, 44, 47, 49, 98, 101, 116, 121, 123, 125, 137, 147, 154,
+214, 221, 254.
+
+Quételet, 18, 248.
+
+
+R.
+
+Rae, 45, 59.
+
+Raleigh, Sir W., 140, 241, 252, 254.
+
+Rau, K. H., 3, 5, 6, 9, 20, 22, 33, 38, 42, 43, 49, 50, 58, 64, 101,
+106, 109, 110, 111, 112, 116, 118, 120, 129, 131, 137, 143, 144, 145,
+146, 147, 153, 156, 161, 166, 168, 179, 181, 194, 195, 208, 212, 216,
+225, 253.
+
+Raumer, F. v., 49.
+
+Raynal, 49, 62, 214.
+
+Read, 195.
+
+Reformers, 47.
+
+Reitemeyer, 135.
+
+Reybaud, 78, 79.
+
+Ricardo, 1, 5, 22, 43, 44, 66, 90, 106, 107, 109, 111, 126, 129, 147,
+148, 150, 151, 152, 153, 154, 157, 164, 173, 175, 183, 184, 185, 186,
+188, 195, 197, 201, 202, 212, 216, 263.
+
+Ricardo's School, 47, 128, 157, 183, 197, 200.
+
+Richelieu, 16.
+
+Riedel, 16, 31, 65, 106, 118, 179, 195; II, 139, 187.
+
+Riehl, 41, 56, 169, 230.
+
+Ritter, K., 37.
+
+Rivet, 258.
+
+Rodbertus, 97, 135, 154, 201.
+
+Roesler, 90, 157, 173, 193, 195, 207.
+
+Rossi, 9, 42, 46, 243, 248.
+
+Rössig, 19.
+
+Rousseau, J. J., 16, 57, 62, 79, 169, 202, 205, 229, 254.
+
+Rümelin, 18.
+
+
+S.
+
+Sadler, Th., 239, 242, 243, 245.
+
+St. Chamans, 8, 90, 116, 123, 144, 214.
+
+St. Just, 79.
+
+St. Simon, 54, 70, 80, 84, 86, 90.
+
+St. Simonists, 54, 70, 80, 84, 86, 90.
+
+Sallustius, 14, 21.
+
+Salmasius, 89, 97, 114, 116, 191, 193.
+
+Sartorius, 29, 128.
+
+Say, J. B., 1, 12, 16, 20, 22, 42, 43, 47, 50, 51, 53, 55, 58, 71, 87,
+90, 98, 104, 106, 108, 115, 129, 137, 144, 145, 147, 151, 154, 169, 183,
+195, 199, 200, 212, 216, 218, 223, 231, 243, 256, 263.
+
+Say, L., 4, 9.
+
+Scaruffii, 134.
+
+Schäffle, 1, 2, 3, 4, 12, 30, 42, 43, 44, 47, 79, 89, 102, 110, 114,
+117, 129, 152, 159, 176, 196a, 207, 208, 218, 246, 250, 251, 258.
+
+Schiller, Fr., 30, 169, 204.
+
+Schleiermacher, 16, 55, 63.
+
+Schlettwein, 128, 145.
+
+Schlazer, U. L. v., 18, 144.
+
+Schlözer, Chr. v., 42, 116, 117, 128, 168, 185, 254.
+
+Schmalz, 17, 19, 152, 195.
+
+Schmitthenner, 42, 44, 50, 54, 95, 99, 108, 116, 117, 121, 224, 253.
+
+Schmoller, 42, 147.
+
+Schön, J., 11, 50, 97, 195.
+
+Schröder, v., 9, 19, 42, 53, 54, 90, 116, 199, 210, 221.
+
+Schulze, F. G., 20, 69, 96.
+
+Schüz, 11.
+
+Scialoja, 13, 17, 38, 41, 51.
+
+Seckendorff, B. L. v., 19, 114, 116, 237, 254.
+
+Seneca, L., 51, 69, 79, 100, 190, 214.
+
+Seneca, M., 251.
+
+Senior, 2, 22, 33, 34, 40, 46, 58, 102, 110, 112, 115, 121, 126, 129,
+130, 142, 143, 148, 152, 155, 161, 165, 166, 167, 169, 173, 180, 181,
+183, 185, 187, 189, 195, 200, 212, 242.
+
+Serra, 33, 48, 181.
+
+Shakespeare, 191.
+
+Shuckburgh, 132, 137.
+
+Sismondi, 12, 22, 44, 50, 54, 55, 93, 97, 98, 106, 109, 117, 123, 128,
+144, 145, 147, 153, 154, 168, 174, 195, 201, 210, 214, 215, 216, 221,
+231, 242.
+
+Smith, Ad., 1, 2, 5, 11, 12, 20, 39, 40, 42, 44, 47, 48, 49, 52, 55, 57,
+58, 59, 66, 71, 81, 91, 97, 98, 104, 106, 107, 111, 112, 113, 116, 117,
+119, 120, 121, 123, 125, 128, 129, 130, 131, 134, 135, 137, 144, 147,
+148, 153, 154, 157, 161, 163, 164, 166, 167, 168, 171, 172, 174, 176,
+179, 183, 185, 186, 192, 193, 195, 197, 202, 213, 214, 218, 221, 226,
+236, 238, 242.
+
+Smith, Th., 116, 137.
+
+Socialists, 6, 9, 12, 22, 53, 62, 66, 81, 82, 85, 88, 97, 117, 147, 148,
+202, 205, 214, 242, 254, 265.
+
+Soden, Graf, 16, 51, 92, 129, 194, 212.
+
+Soetbeer, 138.
+
+Socrates, 9, 71, 100, 250, 251.
+
+Solera, 120.
+
+Solly, 214.
+
+Sonnenfels, v., 160, 194, 254.
+
+Spinoza, 88, 254.
+
+Spittler, 81.
+
+Stahl, F. J., 24, 78.
+
+Stein, K. v., 254, 265.
+
+Stein, L. v., 14, 16, 46, 79, 98, 207.
+
+Steinlein, 30, 47, 61.
+
+Steuart, Sir J., 16, 20, 25, 34, 42, 71, 100, 104, 117, 123, 127, 134,
+137, 147, 157, 199, 201, 213, 224, 239, 242, 253, 254, 263.
+
+Stoics, 72.
+
+Storch, H., 2, 3, 5, 7, 8, 10, 17, 27, 46, 50, 53, 55, 62, 71, 91, 96,
+106, 115, 116, 117, 120, 145, 147, 165.
+
+Strabo, 37, 61.
+
+Struensee, v., 90, 96, 119, 210.
+
+Süssmilch, 239, 245, 247, 254, 256.
+
+
+T.
+
+Tacitus, 41, 238, 250, 251.
+
+Temple, Sir W., 41, 57, 98, 104, 115, 157, 185, 188, 214, 222, 231, 254.
+
+Tengoborsky, 40, 139.
+
+Thaer, 69, 112, 129, 131.
+
+Thiers, 77.
+
+Thomas, Aquin, 21, 49, 57, 191.
+
+Thomasius, Chr., 19, 114.
+
+Thornton, H., 101, 123, 125, 193.
+
+Thornton, W., 164, 166, 176, 253.
+
+Thucydides, Pref., 16, 36, 63, 229.
+
+Thünen, v., 22, 106, 117, 149, 151, 154, 158, 161, 165, 173, 178, 183,
+195.
+
+Tocqueville, 71.
+
+Tooke, Th., 100, 103, 104, 107, 108, 109, 112, 113, 123, 128, 137, 139,
+157, 179, 188, 193.
+
+Torrens, 9, 58, 107, 126, 130, 157, 164, 260, 262.
+
+Townsend, 242.
+
+Tucker (Progress of the U. S.), 71.
+
+Tucker, J., 1, 16, 54, 57, 97, 98, 102, 130, 200, 216, 219, 254, 256,
+262.
+
+Turgot, 5, 9, 37, 42, 47, 49, 57, 70, 71, 90, 92, 95, 115, 116, 117,
+152, 159, 163, 178, 188, 191, 193, 194, 221, 232.
+
+Twiss, 121.
+
+
+U.
+
+Ulloa, 116.
+
+Umpfenbach, 39, 82, 152, 173.
+
+Ure, 173, 176.
+
+Ustariz, 241.
+
+
+V.
+
+Varro, 71.
+
+Vasco, 192, 194.
+
+Vauban, 9, 78, 147, 254.
+
+Vaughan, R., 107.
+
+Verri, 8, 9, 16, 42, 49, 55, 97, 98, 100, 101, 116, 123, 159, 205, 214,
+232, 254.
+
+Viaaxnes, 191.
+
+Villegardelle, 81.
+
+Virgilius, 117.
+
+Voltaire, 11, 98, 210, 225, 254, 255.
+
+
+W.
+
+Wagner, Ad., 13, 90.
+
+Wakefield, D., 51, 64, 89.
+
+Wakefield, E. G., 130, 185, 259.
+
+Walker, A., 151, 152, 176, 195, 202, 206, 242.
+
+Wallace, 242.
+
+Wappäus, 246, 248.
+
+Watts, 176.
+
+Weinhold, 258.
+
+Weishaupt, 214.
+
+Wells, 10.
+
+West, 154.
+
+Weyland, 242, 243.
+
+Whately, 17, 21, 110, 149.
+
+Wirth, M., 185.
+
+Wit, J. de, 92, 108.
+
+Wolf, Chr. v., 175, 256.
+
+Wolkoff, 35, 42, 43, 161, 186.
+
+Woodward, 88.
+
+
+X.
+
+Xenophon, 9, 21, 57, 98, 100, 116.
+
+
+Y.
+
+Young, A., 32, 40, 42, 110, 137, 143, 242, 254.
+
+
+Z.
+
+Zachariä, K. S., 29, 37, 83, 87, 97, 128, 214, 229.
+
+Zeno, 98.
+
+Zincke, 49.
+
+Zwinglius, 191.
+
+
+
+
+DAVID ATWOOD, STEREOTYPER AND PRINTER, MADISON, WIS.
+
+
+
+
+Transcriber's Notes:
+
+Footnotes were moved to the end of the section to which they pertain.
+Because footnote numbers in the original begin at '1' for each section,
+the section number has been added before the footnote number, e.g. the
+first footnote in section 156 appears as: [156-1].
+
+In the Index to Names of Authors, references to sections 1 - 143 pertain
+to Volume 1. See https://www.gutenberg.org/ebooks/27698.
+
+The square root symbol is indicated by 'sqrt' followed by the figure in
+parentheses.
+
+In Footnote 174-8, the year '1700' in column B is as printed in the
+original, but may be a typo for '1800.' Column header codes were added to
+the tables in Footnotes 247-4 and 253-4 so that the tables would fit the
+page in standard view.
+
+Punctuation, including accents in French and Spanish, was standardized.
+Hyphenated words were standardized. For consistency with the remaining
+text, an umlaut was added to 'coöperate.'  Duplicate words, e.g. 'the the,'
+were removed. Obsolete and alternative spellings were retained.
+
+  Other changes:
+    Section Footnote Alteration
+        145      - 'praticable' to 'practicable'
+        145    4 - 'higly' to 'highly'
+        146    1 - 'innocousness' to 'innocuousness'
+        154    7 - 'analagous' to 'analogous'
+        156    2 - 'diffcult' to 'difficult' and header added to right
+                   columns of table for clarity
+        161    4 - beginning of word, line 12 is missing.
+        162        'CXLII' to 'CLXII'
+        163        'themslves' to 'themselves'
+        164    5 - 'Sclavic' to 'Slavic'
+        167    8 - 'Hildebraud' to 'Hildebrand'
+        169    8 - '80' to '0.80' francs
+        174    2 - 'collossal' to 'colossal'
+        175    1 - 'domicil' to 'domicile'
+        176    1 - 'Spiers' to 'Spires' ('Speyer' in German)
+        177    4 - 'Eninb.' to 'Edinb.'
+        177    8 - 'tradesmens'' to 'tradesmen's'
+        178    5 - 'anterest' to 'interest'
+        183    4 - added '5' to '5/12'; numerator is blank in the original.
+        184    3 - 'Haudbuch' to 'Handbuch'
+        185    2 - 'Peleponnesian' to 'Peloponnesian'
+        186    9 - 'Staatswirthschatliche' to 'Staatswirthschaftliche'
+        191   10 - 'Samalsius' to 'Salmasius'
+        192    3 - 'analagous' to 'analogous'
+        193      - 'exceeedingly' to 'exceedingly'
+        194    1 - 'Confedration' to 'Confederation'
+        205    6 - 'anuum' to 'annum'
+        205    8 - in last paragraph, added decimal to '131.2'
+        207    4 - 'capaple' to 'capable'
+        207    8 - 'passsionnées' to 'passionnées'
+        208    4 - anchor missing in original; placed in likely position.
+        212      - 'pnrposes' to 'purposes'
+        213    1 - 'Smilh' to 'Smith'
+        213    3 - 'analagous' to 'analogous'
+        214      - 'civlization' to 'civilization'
+        214    8 - 'carricature' to 'caricature' and
+                   'rêciprocquement' to 'réciproquement'
+        217      - 'but' to 'butt' ... butt-ends of the gun ...
+        219    2 - 'partment' to 'department'
+        220    5 - 'Similarlly' to 'Similarly'
+        221    2 - 'Lois' to 'Louis'
+        224      - 'itfelf' to 'itself'
+        228   13 - 'childrens'' to 'children's'
+        230    3 - 'candalabras' to 'candelabras'
+        231    1 - 'accounr' to 'account'
+        232      - 'palateable' to 'palatable'
+        232    5 - anchor missing in original; placed in likely position.
+        234    3 - 'as' to 'an' ... as an excuse.
+        235      - 'in stead' to 'instead'
+        237    2 - 'ærarium' to 'ærarian'
+        237a   5 - 'capiital' to 'capital'
+        237b   2 - 'chimnies' to 'chimneys'
+        237c   2 - 'Silesea' to 'Silesia'
+        237d   6 - 'Rheinish' to 'Rhenish'
+        238    1 - 'Teleogically' to 'Teleologically'
+        238    1 - 'Worterbuche' to 'Wörterbuch'
+        239    2 - 'sociétié' to 'société' and 'diviseé' to 'divisée'
+        239    3 - 'Enquéte ... occulte' to 'Enquête ... occultes'
+        240      - 'uniformily' to 'uniformly'
+        242      - 'incontestibly' to 'incontestably'
+        242      - 'grevious' to 'grievous'
+        242    5 - 'imposees' to 'imposées'
+        242   10 - 'Chateanneuf' to 'Châteauneuf'
+        242   10 - 'Familes' to 'Familles'
+        242   15 - 'Reflessioni ... Populazione' to
+                     'Riflessioni ... Popolazione'
+        243    7 - 'extraordinay' to 'extraordinary'
+        244    5 - 'Germanans' to 'Germans'
+        244    6 - 'civtilzed' to 'civilized'
+        245    5 - added 'of' to phrase '... one of the principal ...'
+        245    8 - 'Persannes' to 'Persanes'
+        245   12 - 'Prussaia' to 'Prussia'
+        246   11 - 'Gessellschaft' to 'Gesellschaft'
+        247    7 - 'Pommeranian' to 'Pomeranian'
+        248    8 - 'geater' to 'greater'
+        249    3 - 'legitamatized' to 'legitimatized'
+        249    7 - 'Vicbahn' to 'Viebahn'
+        249   10 - 'Chatelet' to 'Châtelet'
+        249   14 - 'Mediceinische' to 'Mediceische'
+        249   15 - 'Duchatelet' to Du Châtelet'
+        250    3 - 'frauzösischen' to 'französischen'
+        250    4 - 'Plutatch' to 'Plutarch'
+        250    5 - 'Thesmophoriazasuses' to 'Thesmophoriazusae'
+        250    7 - 'rennaissance' to 'renaissance'
+        250    7 - 'Pausam.' to 'Pausan.'
+        250   10 - 'Weltjkonomie' to 'Weltökonomie'
+        251      - 'p lyandry' to 'polyandry'
+        251    2 - 'transkaukasia' to 'Transkaukasia'
+        252    1 - 'Litthuanian' to 'Lithuanian'
+        253      - 'earlist' to 'earliest' and 'manifest' to 'manifests'
+        253    1 - 'Akadamie' to 'Akademie'
+        253    7 - 'Schmithenner' to 'Schmitthenner'
+        254    2 - 'Politche' to 'Politiche'
+        254    4 - 'Phillippe' to 'Philippe'
+        256    8 - 'Freidrichs' to 'Friedrichs'
+        256    9 - 'Salsburg' to 'Salzburg'
+        256   10 - 'end' to 'und'
+        256   12 - 'Spiers' to 'Spires'
+        258   17 - 'Un' to 'An'; 'Milleleuropa' to 'Mitteleuropa'; and
+                     'kultivirten' to 'kultivieren'
+        259    5 - 'Sclavic' to 'Slavic'
+        262    2 - 'Appollo' to 'Apollo'
+        262a   4 - 'Appenines' to 'Apennines'
+        262a   6 - 'bivouacing' to 'bivouacking'
+        263    1 - 'histoirique' to 'historique'
+        264    2 - 'controvery' to 'controversy'
+  Apx 2   1      - 'ausgebeuteteten' to 'ausgebeuteten'
+      2   1    3 - 'univesrsalissima' to 'universalissima'
+      2   1    5 - 'commerzio' to 'commercio'
+      2   2   12 - 'Mauth' to 'Maut'
+      2   4      - 'Realisirung' to 'Realisierung'
+      2   4    3 - 'Menreinfuhr' to 'Mehreinfuhr'
+      2   5    5 - 'an' to 'au'
+      2   6    1 - 'Astarta' to 'Astarte'
+      2   6    4 - 'Nymweg' to 'Nijmegen'
+      3   4    7 - 'resourcess' to 'resources'
+      3   7    1 - 'repressailles' to 'représailles' and
+                     'Mercantilsystem' to 'Merkantilsystem'
+  Index            'Obrecht, 238a' to 'Obrecht, 237a'
+
+
+
+
+
+End of the Project Gutenberg EBook of Principles of Political Economy, Vol.
+II, by William Roscher
+
+*** END OF THIS PROJECT GUTENBERG EBOOK PRINCIPLES POLITICAL ECONOMY, VOL II ***
+
+***** This file should be named 38655-0.txt or 38655-0.zip *****
+This and all associated files of various formats will be found in:
+        https://www.gutenberg.org/3/8/6/5/38655/
+
+Produced by Frank van Drogen, Carol Brown, Gwen Adams,
+Elizabeth Oscanyan, and the Online Distributed Proofreading
+Team at https://www.pgdp.net.
+
+
+Updated editions will replace the previous one--the old editions
+will be renamed.
+
+Creating the works from public domain print editions means that no
+one owns a United States copyright in these works, so the Foundation
+(and you!) can copy and distribute it in the United States without
+permission and without paying copyright royalties.  Special rules,
+set forth in the General Terms of Use part of this license, apply to
+copying and distributing Project Gutenberg-tm electronic works to
+protect the PROJECT GUTENBERG-tm concept and trademark.  Project
+Gutenberg is a registered trademark, and may not be used if you
+charge for the eBooks, unless you receive specific permission.  If you
+do not charge anything for copies of this eBook, complying with the
+rules is very easy.  You may use this eBook for nearly any purpose
+such as creation of derivative works, reports, performances and
+research.  They may be modified and printed and given away--you may do
+practically ANYTHING with public domain eBooks.  Redistribution is
+subject to the trademark license, especially commercial
+redistribution.
+
+
+
+*** START: FULL LICENSE ***
+
+THE FULL PROJECT GUTENBERG LICENSE
+PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK
+
+To protect the Project Gutenberg-tm mission of promoting the free
+distribution of electronic works, by using or distributing this work
+(or any other work associated in any way with the phrase "Project
+Gutenberg"), you agree to comply with all the terms of the Full Project
+Gutenberg-tm License (available with this file or online at
+https://gutenberg.org/license).
+
+
+Section 1.  General Terms of Use and Redistributing Project Gutenberg-tm
+electronic works
+
+1.A.  By reading or using any part of this Project Gutenberg-tm
+electronic work, you indicate that you have read, understand, agree to
+and accept all the terms of this license and intellectual property
+(trademark/copyright) agreement.  If you do not agree to abide by all
+the terms of this agreement, you must cease using and return or destroy
+all copies of Project Gutenberg-tm electronic works in your possession.
+If you paid a fee for obtaining a copy of or access to a Project
+Gutenberg-tm electronic work and you do not agree to be bound by the
+terms of this agreement, you may obtain a refund from the person or
+entity to whom you paid the fee as set forth in paragraph 1.E.8.
+
+1.B.  "Project Gutenberg" is a registered trademark.  It may only be
+used on or associated in any way with an electronic work by people who
+agree to be bound by the terms of this agreement.  There are a few
+things that you can do with most Project Gutenberg-tm electronic works
+even without complying with the full terms of this agreement.  See
+paragraph 1.C below.  There are a lot of things you can do with Project
+Gutenberg-tm electronic works if you follow the terms of this agreement
+and help preserve free future access to Project Gutenberg-tm electronic
+works.  See paragraph 1.E below.
+
+1.C.  The Project Gutenberg Literary Archive Foundation ("the Foundation"
+or PGLAF), owns a compilation copyright in the collection of Project
+Gutenberg-tm electronic works.  Nearly all the individual works in the
+collection are in the public domain in the United States.  If an
+individual work is in the public domain in the United States and you are
+located in the United States, we do not claim a right to prevent you from
+copying, distributing, performing, displaying or creating derivative
+works based on the work as long as all references to Project Gutenberg
+are removed.  Of course, we hope that you will support the Project
+Gutenberg-tm mission of promoting free access to electronic works by
+freely sharing Project Gutenberg-tm works in compliance with the terms of
+this agreement for keeping the Project Gutenberg-tm name associated with
+the work.  You can easily comply with the terms of this agreement by
+keeping this work in the same format with its attached full Project
+Gutenberg-tm License when you share it without charge with others.
+
+1.D.  The copyright laws of the place where you are located also govern
+what you can do with this work.  Copyright laws in most countries are in
+a constant state of change.  If you are outside the United States, check
+the laws of your country in addition to the terms of this agreement
+before downloading, copying, displaying, performing, distributing or
+creating derivative works based on this work or any other Project
+Gutenberg-tm work.  The Foundation makes no representations concerning
+the copyright status of any work in any country outside the United
+States.
+
+1.E.  Unless you have removed all references to Project Gutenberg:
+
+1.E.1.  The following sentence, with active links to, or other immediate
+access to, the full Project Gutenberg-tm License must appear prominently
+whenever any copy of a Project Gutenberg-tm work (any work on which the
+phrase "Project Gutenberg" appears, or with which the phrase "Project
+Gutenberg" is associated) is accessed, displayed, performed, viewed,
+copied or distributed:
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+1.E.2.  If an individual Project Gutenberg-tm electronic work is derived
+from the public domain (does not contain a notice indicating that it is
+posted with permission of the copyright holder), the work can be copied
+and distributed to anyone in the United States without paying any fees
+or charges.  If you are redistributing or providing access to a work
+with the phrase "Project Gutenberg" associated with or appearing on the
+work, you must comply either with the requirements of paragraphs 1.E.1
+through 1.E.7 or obtain permission for the use of the work and the
+Project Gutenberg-tm trademark as set forth in paragraphs 1.E.8 or
+1.E.9.
+
+1.E.3.  If an individual Project Gutenberg-tm electronic work is posted
+with the permission of the copyright holder, your use and distribution
+must comply with both paragraphs 1.E.1 through 1.E.7 and any additional
+terms imposed by the copyright holder.  Additional terms will be linked
+to the Project Gutenberg-tm License for all works posted with the
+permission of the copyright holder found at the beginning of this work.
+
+1.E.4.  Do not unlink or detach or remove the full Project Gutenberg-tm
+License terms from this work, or any files containing a part of this
+work or any other work associated with Project Gutenberg-tm.
+
+1.E.5.  Do not copy, display, perform, distribute or redistribute this
+electronic work, or any part of this electronic work, without
+prominently displaying the sentence set forth in paragraph 1.E.1 with
+active links or immediate access to the full terms of the Project
+Gutenberg-tm License.
+
+1.E.6.  You may convert to and distribute this work in any binary,
+compressed, marked up, nonproprietary or proprietary form, including any
+word processing or hypertext form.  However, if you provide access to or
+distribute copies of a Project Gutenberg-tm work in a format other than
+"Plain Vanilla ASCII" or other format used in the official version
+posted on the official Project Gutenberg-tm web site (www.gutenberg.org),
+you must, at no additional cost, fee or expense to the user, provide a
+copy, a means of exporting a copy, or a means of obtaining a copy upon
+request, of the work in its original "Plain Vanilla ASCII" or other
+form.  Any alternate format must include the full Project Gutenberg-tm
+License as specified in paragraph 1.E.1.
+
+1.E.7.  Do not charge a fee for access to, viewing, displaying,
+performing, copying or distributing any Project Gutenberg-tm works
+unless you comply with paragraph 1.E.8 or 1.E.9.
+
+1.E.8.  You may charge a reasonable fee for copies of or providing
+access to or distributing Project Gutenberg-tm electronic works provided
+that
+
+- You pay a royalty fee of 20% of the gross profits you derive from
+     the use of Project Gutenberg-tm works calculated using the method
+     you already use to calculate your applicable taxes.  The fee is
+     owed to the owner of the Project Gutenberg-tm trademark, but he
+     has agreed to donate royalties under this paragraph to the
+     Project Gutenberg Literary Archive Foundation.  Royalty payments
+     must be paid within 60 days following each date on which you
+     prepare (or are legally required to prepare) your periodic tax
+     returns.  Royalty payments should be clearly marked as such and
+     sent to the Project Gutenberg Literary Archive Foundation at the
+     address specified in Section 4, "Information about donations to
+     the Project Gutenberg Literary Archive Foundation."
+
+- You provide a full refund of any money paid by a user who notifies
+     you in writing (or by e-mail) within 30 days of receipt that s/he
+     does not agree to the terms of the full Project Gutenberg-tm
+     License.  You must require such a user to return or
+     destroy all copies of the works possessed in a physical medium
+     and discontinue all use of and all access to other copies of
+     Project Gutenberg-tm works.
+
+- You provide, in accordance with paragraph 1.F.3, a full refund of any
+     money paid for a work or a replacement copy, if a defect in the
+     electronic work is discovered and reported to you within 90 days
+     of receipt of the work.
+
+- You comply with all other terms of this agreement for free
+     distribution of Project Gutenberg-tm works.
+
+1.E.9.  If you wish to charge a fee or distribute a Project Gutenberg-tm
+electronic work or group of works on different terms than are set
+forth in this agreement, you must obtain permission in writing from
+both the Project Gutenberg Literary Archive Foundation and Michael
+Hart, the owner of the Project Gutenberg-tm trademark.  Contact the
+Foundation as set forth in Section 3 below.
+
+1.F.
+
+1.F.1.  Project Gutenberg volunteers and employees expend considerable
+effort to identify, do copyright research on, transcribe and proofread
+public domain works in creating the Project Gutenberg-tm
+collection.  Despite these efforts, Project Gutenberg-tm electronic
+works, and the medium on which they may be stored, may contain
+"Defects," such as, but not limited to, incomplete, inaccurate or
+corrupt data, transcription errors, a copyright or other intellectual
+property infringement, a defective or damaged disk or other medium, a
+computer virus, or computer codes that damage or cannot be read by
+your equipment.
+
+1.F.2.  LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except for the "Right
+of Replacement or Refund" described in paragraph 1.F.3, the Project
+Gutenberg Literary Archive Foundation, the owner of the Project
+Gutenberg-tm trademark, and any other party distributing a Project
+Gutenberg-tm electronic work under this agreement, disclaim all
+liability to you for damages, costs and expenses, including legal
+fees.  YOU AGREE THAT YOU HAVE NO REMEDIES FOR NEGLIGENCE, STRICT
+LIABILITY, BREACH OF WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
+PROVIDED IN PARAGRAPH 1.F.3.  YOU AGREE THAT THE FOUNDATION, THE
+TRADEMARK OWNER, AND ANY DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE
+LIABLE TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR
+INCIDENTAL DAMAGES EVEN IF YOU GIVE NOTICE OF THE POSSIBILITY OF SUCH
+DAMAGE.
+
+1.F.3.  LIMITED RIGHT OF REPLACEMENT OR REFUND - If you discover a
+defect in this electronic work within 90 days of receiving it, you can
+receive a refund of the money (if any) you paid for it by sending a
+written explanation to the person you received the work from.  If you
+received the work on a physical medium, you must return the medium with
+your written explanation.  The person or entity that provided you with
+the defective work may elect to provide a replacement copy in lieu of a
+refund.  If you received the work electronically, the person or entity
+providing it to you may choose to give you a second opportunity to
+receive the work electronically in lieu of a refund.  If the second copy
+is also defective, you may demand a refund in writing without further
+opportunities to fix the problem.
+
+1.F.4.  Except for the limited right of replacement or refund set forth
+in paragraph 1.F.3, this work is provided to you 'AS-IS' WITH NO OTHER
+WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
+WARRANTIES OF MERCHANTIBILITY OR FITNESS FOR ANY PURPOSE.
+
+1.F.5.  Some states do not allow disclaimers of certain implied
+warranties or the exclusion or limitation of certain types of damages.
+If any disclaimer or limitation set forth in this agreement violates the
+law of the state applicable to this agreement, the agreement shall be
+interpreted to make the maximum disclaimer or limitation permitted by
+the applicable state law.  The invalidity or unenforceability of any
+provision of this agreement shall not void the remaining provisions.
+
+1.F.6.  INDEMNITY - You agree to indemnify and hold the Foundation, the
+trademark owner, any agent or employee of the Foundation, anyone
+providing copies of Project Gutenberg-tm electronic works in accordance
+with this agreement, and any volunteers associated with the production,
+promotion and distribution of Project Gutenberg-tm electronic works,
+harmless from all liability, costs and expenses, including legal fees,
+that arise directly or indirectly from any of the following which you do
+or cause to occur: (a) distribution of this or any Project Gutenberg-tm
+work, (b) alteration, modification, or additions or deletions to any
+Project Gutenberg-tm work, and (c) any Defect you cause.
+
+
+Section  2.  Information about the Mission of Project Gutenberg-tm
+
+Project Gutenberg-tm is synonymous with the free distribution of
+electronic works in formats readable by the widest variety of computers
+including obsolete, old, middle-aged and new computers.  It exists
+because of the efforts of hundreds of volunteers and donations from
+people in all walks of life.
+
+Volunteers and financial support to provide volunteers with the
+assistance they need are critical to reaching Project Gutenberg-tm's
+goals and ensuring that the Project Gutenberg-tm collection will
+remain freely available for generations to come.  In 2001, the Project
+Gutenberg Literary Archive Foundation was created to provide a secure
+and permanent future for Project Gutenberg-tm and future generations.
+To learn more about the Project Gutenberg Literary Archive Foundation
+and how your efforts and donations can help, see Sections 3 and 4
+and the Foundation web page at https://www.pglaf.org.
+
+
+Section 3.  Information about the Project Gutenberg Literary Archive
+Foundation
+
+The Project Gutenberg Literary Archive Foundation is a non profit
+501(c)(3) educational corporation organized under the laws of the
+state of Mississippi and granted tax exempt status by the Internal
+Revenue Service.  The Foundation's EIN or federal tax identification
+number is 64-6221541.  Its 501(c)(3) letter is posted at
+https://pglaf.org/fundraising.  Contributions to the Project Gutenberg
+Literary Archive Foundation are tax deductible to the full extent
+permitted by U.S. federal laws and your state's laws.
+
+The Foundation's principal office is located at 4557 Melan Dr. S.
+Fairbanks, AK, 99712., but its volunteers and employees are scattered
+throughout numerous locations.  Its business office is located at
+809 North 1500 West, Salt Lake City, UT 84116, (801) 596-1887, email
+business@pglaf.org.  Email contact links and up to date contact
+information can be found at the Foundation's web site and official
+page at https://pglaf.org
+
+For additional contact information:
+     Dr. Gregory B. Newby
+     Chief Executive and Director
+     gbnewby@pglaf.org
+
+
+Section 4.  Information about Donations to the Project Gutenberg
+Literary Archive Foundation
+
+Project Gutenberg-tm depends upon and cannot survive without wide
+spread public support and donations to carry out its mission of
+increasing the number of public domain and licensed works that can be
+freely distributed in machine readable form accessible by the widest
+array of equipment including outdated equipment.  Many small donations
+($1 to $5,000) are particularly important to maintaining tax exempt
+status with the IRS.
+
+The Foundation is committed to complying with the laws regulating
+charities and charitable donations in all 50 states of the United
+States.  Compliance requirements are not uniform and it takes a
+considerable effort, much paperwork and many fees to meet and keep up
+with these requirements.  We do not solicit donations in locations
+where we have not received written confirmation of compliance.  To
+SEND DONATIONS or determine the status of compliance for any
+particular state visit https://pglaf.org
+
+While we cannot and do not solicit contributions from states where we
+have not met the solicitation requirements, we know of no prohibition
+against accepting unsolicited donations from donors in such states who
+approach us with offers to donate.
+
+International donations are gratefully accepted, but we cannot make
+any statements concerning tax treatment of donations received from
+outside the United States.  U.S. laws alone swamp our small staff.
+
+Please check the Project Gutenberg Web pages for current donation
+methods and addresses.  Donations are accepted in a number of other
+ways including including checks, online payments and credit card
+donations.  To donate, please visit: https://pglaf.org/donate
+
+
+Section 5.  General Information About Project Gutenberg-tm electronic
+works.
+
+Professor Michael S. Hart was the originator of the Project Gutenberg-tm
+concept of a library of electronic works that could be freely shared
+with anyone.  For thirty years, he produced and distributed Project
+Gutenberg-tm eBooks with only a loose network of volunteer support.
+
+
+Project Gutenberg-tm eBooks are often created from several printed
+editions, all of which are confirmed as Public Domain in the U.S.
+unless a copyright notice is included.  Thus, we do not necessarily
+keep eBooks in compliance with any particular paper edition.
+
+
+Most people start at our Web site which has the main PG search facility:
+
+     https://www.gutenberg.org
+
+This Web site includes information about Project Gutenberg-tm,
+including how to make donations to the Project Gutenberg Literary
+Archive Foundation, how to help produce our new eBooks, and how to
+subscribe to our email newsletter to hear about new eBooks.
diff --git a/38655-0.zip b/38655-0.zip
new file mode 100644
index 0000000..2b29aca
--- /dev/null
+++ b/38655-0.zip
diff --git a/38655-8.txt b/38655-8.txt
new file mode 100644
index 0000000..f7b3451
--- /dev/null
+++ b/38655-8.txt
@@ -0,0 +1,23663 @@
+The Project Gutenberg EBook of Principles of Political Economy, Vol. II, by 
+William Roscher
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+
+Title: Principles of Political Economy, Vol. II
+
+Author: William Roscher
+
+Translator: John J. Lalor
+
+Release Date: January 23, 2012 [EBook #38655]
+
+Language: English
+
+Character set encoding: ISO-8859-1
+
+*** START OF THIS PROJECT GUTENBERG EBOOK PRINCIPLES POLITICAL ECONOMY, VOL II ***
+
+
+
+
+Produced by Frank van Drogen, Carol Brown, Gwen Adams,
+Elizabeth Oscanyan, and the Online Distributed Proofreading
+Team at https://www.pgdp.net.
+
+
+
+
+
+Transcriber's Note:  A monospaced font will display the tables in this book
+better than a variable-spaced font.
+
+
+
+
+           PRINCIPLES
+
+               OF
+
+       POLITICAL ECONOMY
+
+               BY
+
+        WILLIAM ROSCHER,
+
+  PROFESSOR OF POLITICAL ECONOMY AT THE UNIVERSITY OF LEIPZIG,
+    CORRESPONDING MEMBER OF THE INSTITUTE OF FRANCE, PRIVY
+       COUNSELLOR TO HIS MAJESTY, THE KING OF SAXONY.
+
+  FROM THE THIRTEENTH (1877) GERMAN EDITION.
+
+  WITH ADDITIONAL CHAPTERS, FURNISHED BY THE AUTHOR, FOR THIS FIRST
+  ENGLISH AND AMERICAN EDITION, ON
+
+  PAPER MONEY, INTERNATIONAL TRADE, AND THE
+        PROTECTIVE SYSTEM;
+
+        AND A PRELIMINARY
+
+  ESSAY ON THE HISTORICAL METHOD IN POLITICAL ECONOMY
+
+        (From the French)
+
+         BY L. WOLOWSKI,
+
+     THE WHOLE TRANSLATED BY
+
+       JOHN J. LALOR, A. M.
+
+            VOL. II.
+
+  [Illustration: Printer's Logo]
+
+           NEW YORK:
+        HENRY HOLT & CO.
+             1878.
+
+
+  Entered according to Act of Congress, in the year eighteen hundred
+  and seventy-eight,
+
+       BY CALLAGHAN & CO.,
+  In the office of the Librarian of Congress, at Washington, D. C.
+
+  DAVID ATWOOD, STEREOTYPER AND PRINTER, MADISON, WIS.
+
+
+
+
+              TO
+
+     WILLIAM H. GAYLORD, ESQ.,
+
+     _COUNSELOR AT LAW_,
+       OF CLEVELAND, OHIO,
+
+  TO WHOSE BROTHERLY CARE IT IS LARGELY DUE THAT I LIVED TO
+        TRANSLATE THEM,
+
+         THESE VOLUMES
+
+  ARE AFFECTIONATELY INSCRIBED.
+
+
+
+
+BOOK III.
+
+DISTRIBUTION OF GOODS.
+
+
+
+
+CHAPTER 1.
+
+INCOME IN GENERAL.
+
+
+SECTION CXLIV.
+
+RECEIPTS.--INCOME.--PRODUCE.
+
+The idea covered by the word receipts (_Einnahme_) embraces all the new
+additions successively made to one's resources within a given period of
+time.[144-1] Income, on the other hand, embraces only such receipts as
+are the results of economic activity. (See �� 2, 11.) Produce (_Ertrag_,
+_produit_) is income, but not from the point of view of the person or
+_subject_ engaged in a business of any kind, but from that of the
+business itself, or of the _object_ with which the business is
+concerned, and on which it, so to speak, acts.
+
+Income is made up of products, the results of labor and of the
+employment and use of resources. These products, the producer may either
+consume himself or exchange against other products, to satisfy a more
+urgent want.[144-2] Hence, spite of the frequency with which we hear
+such expressions as these: "the laborer eats the bread of his employer;"
+"the capitalist lives by the sweat of the brow of labor;" or, again, a
+manufacturer or business man "lives from the income of his
+customers,"[144-3] they are entirely unwarranted. No man who manages his
+own affairs well, or those of a household, lives on the capital or
+income of another man; but every one lives on his own income, by the
+things he has himself produced; although with every further development
+of the division of labor, it becomes rarer that any one puts the
+finishing stroke to his own products, and can satisfy himself by their
+immediate consumption alone. Hence we should call nothing diverted or
+derived income except that which has been gratuitously obtained from
+another.[144-4]
+
+     [Footnote 144-1: Including of course, gifts, inheritances,
+     lottery prizes, etc.]
+
+     [Footnote 144-2: Thus the original income of the peasant
+     consists in his corn, of the miller in his flour, of the
+     baker in his bread, of the shoemaker in his shoes. The money
+     which circulates among all these and the purchaser, is only
+     the means of exchanging that part of their products which
+     they cannot themselves use, for other goods. Money, on the
+     other hand, was the original income of the producers of the
+     gold or silver it contains. Compare _Mirabeau_, Philosophie
+     rurale, 1763, ch. 3. _Adam Smith_, II, ch. 2. But
+     especially, see _J. B. Say_, Trait� II, ch. 1, 5; and
+     _Sismondi_, N. P., I, 90, 376, in which it is correctly
+     said, that the quality which constitutes anything capital or
+     income does not inhere in the thing itself, but depends on
+     the person. Compare, however, I, 148; _Hermann_, Staatsw.
+     Untersuch. 297 ff., 33 seq.]
+
+     [Footnote 144-3: A fundamental thought in _St. Chamans_, Du
+     Syst�me d'Imp�t, 1820. Nouvel Essai sur la Richesse des
+     Nations, 1824.]
+
+     [Footnote 144-4: Thus, for instance, the support given by
+     the head of a family to the members thereof; also gifts,
+     alms, thefts. Even _A. L. Schl�zer_, St. A., II, 487, will
+     allow that no one "eats the bread of another," but the
+     person who has received it from the latter by way of favor
+     and for nothing. In the case of a rented house, there is
+     only an exchange of objects of income. The person to whom it
+     is rented gives up a portion of his, and the renting party
+     the use of his house. Similarly, in the case of personal
+     services. Writers who maintain that only certain kinds of
+     useful labor are productive, must of course extend the
+     limits of diverted income much farther. See _Lotz_,
+     Handbuch, III, � 133; _Rau_, Lehrbuch, I, �� 248, 251.
+     _Cantillon_ thinks that if no landowner spent more than his
+     income, it would be scarcely possible for any one else to
+     grow rich. (Nature du Commerce, 75.) According to _Stein_,
+     Lehrbuch, 347, every one gets his income from the income of
+     other people!]
+
+
+SECTION CXLV.
+
+INCOME.--GROSS, FREE AND NET.
+
+In all _income_, we may distinguish a _gross_ amount, a _net_ amount and
+a _free_ amount.[145-1] The gross income of a year, for instance,
+consists of all the goods which have been newly produced within that
+time. The net[145-2] income is that portion of the former which remains
+after deducting the cost of production (� 106), and which may therefore
+be consumed without diminishing the original resources. Only the new
+values incorporated in the new commodities make up the net income.
+Evidently, a great portion of what is considered in one business the
+cost of production is net income in a great many others; as for
+instance, what the person engaged in one enterprise in production has
+paid out in wages and interest on capital. By means of this outlay, a
+portion of his circulating capital is drawn by others as income, and, on
+the other hand, a portion of their original income is turned into a
+portion of his circulating capital.[145-3] _Free_ income, I call that
+portion of net income which remains available to the producer after his
+indispensable wants have been satisfied.
+
+An accurate kind of book-keeping which keeps these three elements of
+income separate is more generally practicable as civilization advances.
+We might call it the _economic balance_. Where commerce is very thriving
+it is even customary to provide by law that those classes who need it
+especially should have this species of book-keeping. People in a lower
+stage of cultivation, with their poetical nature, are unfriendly to such
+calculations.[145-4] [145-5] And where natural-economy (_Naturalwirthschaft_)
+or barter prevails, a book-keeping of this kind of any accuracy is scarcely
+practicable. The ratio which net income bears to gross income is a very
+important element to enable us to judge of the advantageousness of any
+method of production. If every producer should succeed in consequence of
+keeping his books in this manner, in determining exactly the cost to him of
+each of his products, this would be an economic progress similar to that of
+general spread of good chemical knowledge in the arts. On the amount of
+_free_ income, on the other hand, depends all the higher enjoyment of life,
+all rational beneficence, and the progressive enrichment of mankind.[145-6]
+
+     [Footnote 145-1: Similarly in _Sismondi_, N. P., II, 330,
+     and _Rau_, Lehrbuch, I, � 71, a.]
+
+     [Footnote 145-2: Called by _Hermann_, loc. cit., simply
+     income.]
+
+     [Footnote 145-3: This truth _J. B. Say_ has exaggerated to
+     the extent of claiming that gross and net income are one and
+     the same so far as entire nations are concerned. (Trait�,
+     II, ch. 5; Cours pratique, III, 14; IV, 74.) But the gross
+     profit of the entire production of any one year is much
+     greater than the simultaneous net income of all the
+     individuals engaged in it. This is accounted for by the fact
+     that in such production an amount of circulating capital is
+     invested which was saved from the net profit of previous
+     economic times. Compare _Storch_, Nationaleinkommen, 90 ff.
+     _Kermann_, loc. cit., 323 ff.]
+
+     [Footnote 145-4: In the East, a valuation by one's self of
+     his property is considered a guilty kind of pride, usually
+     punished by the loss of one's possessions. (_Burckhardt_,
+     Travels in Arabia, I, 72 ff.) See _Samuel_, 24, on the
+     census made by David. The Egyptians, however, as may be
+     inferred from their monuments, must have very early and very
+     extensively felt the want of some kind of book-keeping such
+     as we have mentioned. A very accurate sort of book-keeping
+     among the more highly cultured Romans, with a daily
+     memorandum and a monthly book with entries from the former
+     (_adversaria-tabula expensi et accepti_). Compare _Cicero_,
+     pro Roscio, com. 2, 3; pro Cluent, 30; _Verr._, II, 1, 23,
+     36. The Latin _putare_, from _putus_, pure, means: to make
+     an account clear, and therefore corresponds to the American
+     provincialism, "I reckon," i. e., I believe; and is a
+     remarkable proof of a rigid method of keeping accounts. The
+     Italian, or so-called double-entry method of book-keeping,
+     which gives the most accurate information on the profit from
+     every separate branch of business, became usual among the
+     nations of modern Europe whose civilization was the first to
+     ripen, about the end of the fifteenth century. Its invention
+     is ascribed to the monk Luca Paciolo di Borgo S. Sepolcro.
+
+     In England, this kind of book-keeping is very gradually
+     coming into use even among farmers, while _Simond_, Voyage
+     en Angleterre, 2 ed., II, 64, _Dunoyer_, Libert� du Travail,
+     VIII, 5, say, "it would in France be considered as
+     ridiculous as the book-keeping of an apple vendor." In
+     Germany, there have been for some time past, manufactories
+     of commercial books. Besides, the remarkable difference
+     brought out by the income tax in England between the exact
+     statements made by large manufacturers, etc., and by those
+     engaged in industry on a medium or small scale, bears
+     evidence of the better way in which the former keep their
+     accounts, the cause and effect of their better business in
+     general. Compare _Knies_, in the T�bing. Zeitschr., 1854,
+     513. On the best mode of determining income, see _Cazaux_,
+     El�ments d'�conomie publique et priv�e, Livre, II. It is
+     especially necessary to keep an account of the increase or
+     diminution, even when accidental, of the value of the fixed
+     capital employed.]
+
+     [Footnote 145-5: The Code de Commerce, I, art. 8, requires
+     that every merchant should keep a journal, paged and
+     approved by the authorities, showing the receipts and
+     disbursements of each day, on whatever account, and also the
+     monthly expenditures of his family. Besides, he is required
+     to make a yearly inventory of his debits and credits,
+     subscribe to it and preserve it. That such books were
+     excellent judicial evidence may be shown by Italian statutes
+     of the fourteenth century. (_Martens_, Ursprung des
+     Wechschrechts, 23.) Those of Germany even in 1449.
+     (_Hirsch_, Danziger Handelsgeschichte, 232.)]
+
+     [Footnote 145-6: Importance of the so-called "transferring
+     to credit," where a business man considers his business as
+     an independent entity and as distinct from himself.]
+
+
+SECTION CXLVI.
+
+NATIONAL INCOME.--ITS STATISTICAL IMPORTANCE.
+
+Among the most important[146-1] but also the most difficult objects of
+statistics, that book-keeping of nations, is national income. In
+estimating it, we may take our starting point from the goods which are
+elements of income, or from the persons who receive them as
+income.[146-2]
+
+In the former case the gross national income consists:
+
+A. Of the raw material newly obtained in the country.
+
+B. Of imports from foreign countries, including that which is secured by
+piracy, as war-booty, contributions, etc.
+
+C. The increase of values which industry[146-3] and commerce add to the
+first two classes up to the time of their final consumption.
+
+D. Services in the narrower sense and the produce (_Nutzungen_) of
+capital in use.
+
+All these several elements, estimated at their average price in money,
+which supposes that all purchases, especially those under the head D,
+are made voluntarily[146-4] and at their natural price.
+
+To find the national net income, we must deduct the following items:
+
+A. All the material employed in production which yields no immediate
+satisfaction to any personal want.[146-5]
+
+B. The exports which pay for the imports.
+
+C. The wear and tear of productive capital and capital in use.
+
+In the second case the net national income is to be calculated from the
+following items:
+
+A. From the net income of all independent private businesses etc.[146-6]
+
+B. From the net income of the state, of municipalities, corporations and
+institutions, derived from their own resources.
+
+C. Under the former heads must be taken into the account such parts of
+property as have been immediately consumed and enjoyed.[146-7]
+
+D. Interest on debt must be added only on the side of the creditor, and
+deducted from the income of the debtor; otherwise, _error dupli_. This
+does not apply to taxes or church dues because the subjects of a good
+state and members of a good church purchase thereby things which are
+really new and of at least equal value to the outlay. Besides, in both
+instances, it is necessary to calculate the number of men who live from
+the national income, the average amount of their indispensable wants,
+and the average price in money of the same, in order to determine the
+_free_ national income by deducting the sum total of these average
+wants, estimated at this average price.[146-8] [146-9]
+
+     [Footnote 146-1: Not only to compare the happiness and power
+     of different nations with one another, but also for purposes
+     of taxation, the profitableness and innocuousness of which
+     suppose the most perfect adaptation to the income of the
+     whole people.]
+
+     [Footnote 146-2: The former, in _Rau_, Lehrbuch, I, � 247;
+     the latter in _Hermann_, 308 ff. The former mode of
+     calculation gives us a means of judging of the comfort of
+     the people, their control of natural forces, etc.; the
+     second, of the relation of classes among the people. (_v.
+     Mangoldt_, Grundriss, 99. V. W. L., 316 ff.) Each member of
+     the nation produces his income only in the whole of the
+     nation's economy. Hence _Held_, Die Einkommensteuer, 1872,
+     70, 77, would, but indeed only under very abstract fictions,
+     construct private income from the national, and not _vice
+     versa_.]
+
+     [Footnote 146-3: On the average degree of this increase of
+     values in different industries, see _Chaptal_, De
+     l'Industrie fran�aise, II, passim. _Bolz_, Gewerbekalender
+     f�r, 1833, 111. No such scale can be lastingly valid,
+     because, for instance, almost all technic progress decreases
+     the appreciation of values through industry, and every
+     advance made by luxury raises the claims to refined quality
+     etc. See _Hildebrand_, Jahrb�cher f�r Nat-Oek., 1863, 248
+     ff.]
+
+     [Footnote 146-4: Many items in Class D evade all
+     calculation. Thus, for instance, the numberless cases of
+     personal services which are enjoyed only by the doer
+     himself; also the greater number of products
+     (_Nutzungen_=usufruct) of capital in use for the consumption
+     of the owner himself. (Latent income.) Only, it may be, in
+     the case of dwelling houses, equipages, etc., that the
+     consumption by use can be estimated in accordance with the
+     analogy of similarly rented goods.]
+
+     [Footnote 146-5: The principal materials consumed in
+     manufactures are of course not to be deducted here, because
+     the increase in their value was taken into account above.]
+
+     [Footnote 146-6: When an artist who earns $10,000 per annum
+     appears in a country, the gross national income increases in
+     a way similar to that in which it increases when a new
+     commodity is found which would have a yearly increase of
+     value equal to $10,000 over and above that of the raw
+     material. Cost of production in the case of such a virtuoso
+     is scarcely to be alluded to. Nearly his entire income, with
+     the exception of his traveling expenses, etc., is net, and
+     the greater portion of it _free_. An income tax would affect
+     his hearers after as it did before, and in his income, find
+     a completely new object. _Per contra_, see Saggi economici,
+     I, 176 f.]
+
+     [Footnote 146-7: For purposes of taxation, where a relative
+     valuation is more the question than an absolute one, it
+     would be sufficient to assume that every household consumed
+     clothing, utensils, etc., in proportion to the rest of their
+     income. Hence, these items might, unhesitatingly, be omitted
+     altogether.]
+
+     [Footnote 146-8: Mathematically demonstrated by _Fuoco_,
+     Saggi economici, II, 102 ff.]
+
+     [Footnote 146-9: The gross income of British Europe is
+     estimated by _Pebrer_, Histoire financi�re et statistique
+     g�n�rale de l'Empire Br., 1834, II, 90, at �514,823,059,
+     viz.: agriculture, �246,600,000; mining, 21,400,000;
+     manufactures, after deduction made of the raw material,
+     �148,050,000; internal and coast trade, �51,975,060; foreign
+     commerce and navigation, �34,398,059; banking, �4,500,000;
+     interest from foreign countries, �4,500,000. By _Moreau de
+     Jonn�s_, Statist de la Gr. Br., 1837, I, 312, it is
+     estimated at 18,000,000,000 francs, from which, however, the
+     raw material used in industry is not deducted. The net
+     income of Great Britain was estimated by Pitt, in 1799, at
+     �135,000,000, of which �25,000,000 were received by
+     landowners for rent, �25,000,000 by farmers, �5,000,000 were
+     tithes, �3,000,000 from forests, canals, and mines,
+     �6,000,000 from houses, �15,000,000 from state funds,
+     �12,000,000 from foreign commerce, �28,000,000 from inland
+     commerce and manufactures, �3,000,000 from fine arts,
+     �80,000,000 from Scotland, �5,000,000 from foreign
+     countries. (_Gentz_, Histor. Journ., 1799, I, 183 ff.)
+     _Lowe_, England in its present Situation, 1822, p. 246,
+     speaks of 255,000,000. About 1860, the incomes subject to
+     taxation alone, that is, all above �100, amounted to
+     335,000,000. The remainder was certainly worth one-half of
+     this. (Statist. Journ., 1864, 121.) _Baxter_, in 1867,
+     assumed it to be �825,000,000. Compare _L. Levi_, on
+     Taxation, 6.
+
+     In France, about forty years ago, according to Chaptal,
+     Doudeauville, Balbi and others, about 6,500,000,000 francs
+     gross national income could be counted on. _Schnitzler_
+     speaks of 7,000,000,000 francs (Creation de la Richesse en
+     France, 1842, I, 392), after deduction made of the raw
+     material of manufacture. According to _Wolowski_,
+     Statistique de la Fr., 1847, it was more than 12,000,000,000
+     francs. _M. Chevalier_, Revue des deux Mondes, March 15,
+     1848, has it 10,000,000,000 at most. In these four
+     estimates, only material products are taken into account.
+     _Ch. Dupin_ thinks the income per capita was, in 1730, = 108
+     francs; in 1780, = 169; in 1830, = 269. _Cazeaux_, El�ments,
+     163, estimated the net national income, in 1825, at
+     5,000,000,000 francs; _Cochut_, in 1861, at 16,000,000,000.
+     (Revue des deux Mondes, XXXVII, 703.)
+
+     In Spain, _Borrego_, Nationalreichthum, etc. Spaniens, 1834,
+     33, estimated the income from agriculture at 2,284,000,000
+     francs; from industry, etc., 361,000,000; commerce,
+     124,000,000; from houses, 186,000,000; canals, streets etc.,
+     8,500,000; personal services, 75,000,000; money in
+     circulation (probably loaned capital), 85,000,000.
+
+     In the United States, in 1840, the national income was
+     estimated at over $1,063,000,000; from agriculture, over
+     $654,000,000; from manufactures, nearly $240,000,000;
+     commerce, almost $80,000,000; mining, over $42,000,000; from
+     lumber (_W�ldern_), almost $17,000,000; and from the
+     fisheries, almost $12,000,000. The per capita amount of
+     income was $62. It was largest in Rhode Island--$110; in
+     Massachusetts it was $103; in Louisiana, $99; and in Iowa,
+     smallest, $27; in Michigan, it was $33. Compare _Tucker_,
+     Progress of the United States, 195 ff. The census of 1860
+     assumes the national wealth, slaves not included, at
+     $14,183,000,000, that is $451 per capita, with a per capita
+     annual income of $112. According to _Cz�rnig_, the gross
+     income of Austria, from agriculture, the chase and
+     fisheries, in 1861, was 2,119,000,000 florins; from mining,
+     41,000,000; from the industries, 1,200,000,000. In Prussia,
+     the net national income, not including the revenue from
+     state property, nor the income of the royal household,
+     seems, from the returns of the income and _class_ tax, to
+     have been about 2,458,000,000 thalers, in 1874. _Engel_,
+     Preuss. Statist. Ztschr., 1875, 133. The majority of the
+     above estimates are obviously unreliable.]
+
+
+SECTION CXLVII.
+
+NATIONAL INCOME.--ITS STATISTICAL IMPORTANCE.
+[CONTINUED.]
+
+The question frequently discussed, whether it is more advantageous to
+increase the gross income or the net income[147-1] of a people, may be
+readily answered with the assistance of our tripartite division. Since
+economic production has no other object than the satisfaction of human
+wants, the mere increase of the gross income of a people is a matter of
+indifference. An increase of the net income puts a people in a condition
+to increase either their numbers or their enjoyments. (See �� 163 and
+239.) The most desirable condition is where both these results are
+produced. It is fortunate for a people when the _free_ income of the
+nation increases by reason of the absolute or relative decrease of the
+cost of production, which adds nothing to enjoyment. But it is
+politically and morally to be lamented when it increases at the expense
+of the satisfaction of man's necessary wants, especially if the majority
+of the people deny themselves in this respect to produce that end. Sir
+Thomas More called the sheep of his time, to make place for which so
+many farm houses were razed to the ground, ravenous beasts, which
+devoured men and laid waste city and country.[147-2]
+
+     [Footnote 147-1: The greater number of writers, at bottom,
+     understand by this question only whether greater efforts
+     should be made to increase the wages of the lower classes or
+     the rent and rate of interest on capital paid to the higher.
+     (_Schmoller_, in the T�b. Zeitschrift, 1863, 22.)]
+
+     [Footnote 147-2: The difference between gross and net income
+     was introduced into the science principally by the
+     Physiocrates. _Vauban_ (1707) had no conception of it, and
+     thirty years later a French minister, in his instructions
+     concerning the levy of the _vingti�mes_, dimly seeing that
+     the aggregate amount of the harvest was not clear gain,
+     ordered, to obtain the latter, that the cost of reaping and
+     threshing should be deducted. (_Dupont_, Correspondence of
+     _J. B. Say_, 404, �d. Daire.) By _produit net_, _Quesnay_
+     means the excess of original production over its cost,
+     considered from the personal point of view of the individual
+     landowner. This excess, it is claimed, can alone increase
+     the national wealth and alone support the "steril" class.
+
+     The political and military bearing of this very clearly
+     recognized. (102 ff., �d Daire.) Hence _Quesnay_, favors it
+     in every way; by large farming instead of small, by stock
+     raising on a large scale, supplanting home labor by cheaper
+     foreign labor, by machinery and the employment of manual
+     labor, etc.; 91 ff., 200 ff., 274 ff. The elder _Mirabeau_
+     teaches even that the goodness of a government or of a
+     constitution, and even national morality may be inferred
+     from the amount of the _produit net_. (Ph. rurale, ch. 5.)
+     _Stewart_, Principles, I, ch. 20. _Adam Smith_ gives greater
+     prominence to the gross income, and grades the principal
+     branches of national labor according as they increase the
+     gross product of the nation's economy. (II, chs. 1, 5.)
+     Similarly, _J. B. Say_, Trait�, ch. 8, � 3; _Lauderdale_,
+     Inquiry, 142.
+
+     _Ricardo_ thoroughly reacts against this view, and considers
+     it a matter of indifference whether a net product (interest
+     on capital and rent) of a given amount be obtained by the
+     labor of five or seven million other men, so long as only
+     five million can live on it. (Principles, ch. 26.) Similarly
+     _Ganilh_, Syst�mes, I, 218 ff.; Th�orie, II, 96.
+     Controverted by _Malthus_, Principles, II, � 6. _Buquoy_,
+     Theorie der Nat. Wirthsch., 1815, 310 ff. _Sismondi_ has
+     ridiculed this predilection for the net product which in
+     _Ricardo_ corresponds with what the Germans call free
+     product (_freien Ertrage_), and which, contrary to Ricardo's
+     own opinion, he calls Ricardo's ideal, saying that according
+     to him, nothing more was to be desired but that "the king
+     should remain alone on the island and, by turning a crank
+     forever, do all the work of England through the
+     instrumentality of automata." (N. P., II, 330 ff.) An entire
+     people should value only gross product. (I, 183.) In his
+     Etudes, Essai, II: Du Revenu Social, _Sismondi_
+     distinguishes as elements of the gross national income: a,
+     pure capital, the return of outlay; b, that which is at once
+     both capital and income, and serves as family support
+     (capital as a necessarily remaining supply, income as the
+     product of the preceding year); c, net income, the excess of
+     production over consumption.
+
+     The Socialists of our day would prefer to see the whole net
+     income of a people employed in the satisfaction of the
+     necessary wants of an ever increasing population. By this
+     procedure, as a natural consequence, we should witness first
+     the curtailing of the taxing power, of the funds for the
+     satisfaction of the more refined wants and of the saving of
+     capital, nor would it be long before even the existing
+     generation would experience the bitterness of this "living
+     from hand to mouth." After a time, even the possibility of
+     progress and even of mere increase of population would
+     cease.
+
+     _Hermann_, Staatsw. Untersuch., 297 ff., has better than
+     almost any one else developed the theory of income, and he
+     lays most stress on the satisfaction of wants as the chief
+     aim of public economy. _Kr�ncke_, Das Steuerwesen, 1804, 381
+     ff.; Grunds�tze einer gerechten Besteuerung, 1819, 93 f.,
+     may be considered the predecessor who prepared the way for
+     him. Compare the profound work of _Bernhardi_, Versuch einer
+     Kritik der Gr�nde die f�r grosses und kleines Grundeigenthum
+     angef�hrt werden, St. Petersburg, 1848. Many controversies
+     on this subject may be closed by a more accurate
+     understanding as to terms. Thus, for instance, when _Rau_,
+     Handbuch, embraces in the cost of production the necessary
+     maintenance of material-workmen, and of those engaged in the
+     labor of commerce; or when _Jacob_, Staatswissenschaft, �
+     496, and _Storch_, Einkommen, 116 ff., even the necessary
+     support of every class useful to society, their valuation of
+     the gross national income is in only apparent conflict with
+     our doctrine on the subject.]
+
+
+SECTION CXLVIII.
+
+THE TWO PHASES OF INCOME.
+
+In every income which has anything to do with other incomes, it is
+necessary to distinguish its immediately productive side, and its profit
+or acquisition side. It is necessary, in the first place, that all the
+products made by private parties should, so to speak, be put into the
+common treasury of the national economy, and that each should thence
+draw his own private revenue. Justice requires that there should be a
+perfect correlation between the two; that each should enjoy precisely
+the quota of the national income to the production of which his person
+or his property contributed. A just appreciation of the relative
+productive power of the divers branches of labor constitutes one of the
+chief bulwarks against the inroads of destructive socialistic theories.
+The person who calls a good doctor or a good judge unproductive should,
+to be consistent, call those who by their greater intelligence are
+fitted to superintend agricultural and industrial enterprises
+unproductive, also, as is done by the coarser socialists with their
+apotheosis of mere manual labor. Unfortunately, such a settlement as is
+above contemplated among the different factors of production, whose
+owners are desirous to divide the common product among them, is possible
+only where the factors of production are either of the same kind, or can
+be reduced to a common denominator.[148-1] But if justice pure and
+simple were meted out, no man could subsist. Love or charity must
+supplement justice in order to assist those (and especially such as
+without any fault of theirs) who are not able to produce anything, or
+enough to supply those wants, for instance, children and the poor.
+
+As the net national income, following the three great factors of all
+economic production, is divided into three great branches, rent, wages
+and interest on capital, the net income from any private business may be
+reduced to one or more of these branches.[148-2] The three great
+branches of income may be considered with advantage from a great many
+different points of view. We may inquire in the case of each of them:
+concerning its absolute magnitude, its relation to the aggregate
+national income, to the magnitude of the factor of production, of which
+it constitutes the remuneration; by what number of men it is shared, and
+what number of wants it satisfies.[148-3] Lastly, the difference between
+the amount stipulated for, and the original amount of both rent and
+wages, as well as the interest of capital, is of special importance. The
+former consists in the price paid by the borrower for the use of the
+factor of production to the owner; the latter in the immediate products
+which the employment of the same productive power brings on one's own
+account. Evidently, the original amount is, in the long run, the chief
+element in the determination of the stipulated amount. While the former
+depends more on the deeper and more durably effective elements of price,
+especially the cost of production, the value in use and the paying
+capacity of purchasers; the latter is conditioned more by the
+superficial variations of supply and demand, and even by custom. For our
+purposes, the former is by far the more important, but, at the same
+time, by far the more difficult to perceive.
+
+     [Footnote 148-1: This is possible between labor and capital,
+     at least in so far as a comparison can be instituted between
+     the sacrifice of human rest there is in labor and the
+     sacrifice of enjoyment in the building up of capital. But
+     the person who introduces an entirely unimproved piece of
+     land into the service of production, stands to the laborer
+     as well as to the capitalist in a relation which is entirely
+     incomparable with any other. (See � 156.) The doctrine of
+     former agriculturists, that one-half of the harvest was to
+     be ascribed to the soil and the other to the manure, would
+     not suffice here, even if it were correct. Compare _Fraas_,
+     Gesch. der Landbau- und Forstwissenschaft, 257. But in the
+     production of a calf, the co�peration of a bull and cow are
+     necessary. Yet no one is in condition to determine what
+     portion of the calf is to be accounted as belonging to
+     either. If the bull and cow belong to different owners, the
+     relation of supply and demand, and the deeper causes that
+     determine them, decide in what proportion the value of the
+     calf is to be divided among them.]
+
+     [Footnote 148-2: Among the greatest services rendered by
+     _Adam Smith_ is, his complete demonstration, that any income
+     may be resolved into one or more of the three great branches
+     of the national income. (I, ch. 6.)]
+
+     [Footnote 148-3: _Ricardo_ has not unfrequently bewildered
+     uncritical readers, by his habit--in which he is by no means
+     always consistent--of using the expressions higher and lower
+     wages, higher and lower profit of capital, to designate not
+     the absolute greatness of these branches of income, either
+     in money or in the wants of life, nor their greatness from a
+     personal point of view, but only their relative greatness as
+     compared with the aggregate income, the measure of the quota
+     of the aggregate product which is divided among workmen,
+     capitalists, etc. And yet, in the case of most economic
+     questions, this is without doubt the less interesting side.
+     Compare the polemic of _R. Jones_, On the Distribution of
+     Wealth, 1831, I, 288 ff.; _Senior_, Outlines, 142 seq.;
+     _Carey_, On the Rate of Wages, 1834, 24. Thus, according to
+     _Ricardo_, the increase of one branch is possible only at
+     the expense of another, while in the case of flourishing
+     nations, the three branches increase absolutely and
+     together. _Ricardo_, himself, was by no means unacquainted
+     with this, as may be seen from _Baumstark's_ German
+     translation of his work, pp. 37, 108 ff.]
+
+
+
+
+CHAPTER II.
+
+THE RENT OF LAND.
+
+
+SECTION CXLIX.
+
+THEORY OF RENT.
+
+Rent is that portion of the regular net product of a piece of land which
+remains after deducting the wages of labor and the interest on the
+capital usual in the country, incorporated into it.[149-1] Hence it is
+the price paid for the using of the land itself, or for what Ricardo
+calls the original inexhaustible forces of the soil which are capable of
+being appropriated.[149-2] This price also depends, of course, on the
+relation between demand and supply; the demand in turn, on the wants and
+means of payment of buyers, but the supply by no means on cost of
+production, which, from the definitions above given, is here
+unthinkable. However, land has this in common with other means of
+production, that its price is mainly determined by that of its products.
+
+     [Footnote 149-1: According to _von Th�nen_, Der isolirte
+     Staat. in Beziehung auf Landwirthschaft und Nat. Oek, 1850,
+     I, 14: "what remains of the revenue of an estate after
+     deducting the interest on all the objects of value which may
+     be separated from the soil." According to _Whately_, it is
+     surplus profit. The expression "regular product" supposes,
+     among other things, an average skillfulness of the economic
+     individual. Thus, for instance, the farm-rent of a piece of
+     land generally includes besides the real rent of the land,
+     interest on much capital which is more or less firmly fixed
+     in the soil. The importance of the latter may be
+     approximately determined from the fact that in the
+     electorate of Hesse, for instance, the value of all meadow
+     lands, woods, and agricultural lands is estimated at from
+     205 to 206 millions of thalers, and the value of all the
+     houses at 100 millions. (_Hildebrand_, Statist. Mittheil.
+     �ber die volkswirthschaftlichen Zust�nde Kurhessens, 1852,
+     37.) In the English income tax of 1843, the annual value of
+     all lands in Great Britain was estimated at over 45 millions
+     sterling, that of all houses at over 38 millions. However
+     the farm-rent of a piece of land does not by any means
+     always embrace the entire rent. A part of the rent is paid
+     to the state in the form of taxes, and another portion to
+     the payment of tithes. Short leasehold terms, frequent land
+     sales, the comparatively great difficulty of disengaging
+     capital invested in the cultivation of land, the union of
+     landed proprietor, capitalist and laborer in one person
+     easily obscure the law of rent.]
+
+     [Footnote 149-2: The stores of immediate plant food in a
+     piece of land, of minerals in a mine, of salt in a salt
+     mine, etc., are subject to the law of rent only in so far as
+     they may be considered inexhaustible; that is, they are not,
+     strictly speaking, subject to it. Our definition applies all
+     the more to the capacity for cultivation, and of support or
+     bearing capacity mentioned in � 35; and hence it is easier
+     to follow the law of rent in the case of land used for
+     building purposes than for agriculture. When _v. Mangoldt_
+     claims that the exhaustibility or inexhaustibility of the
+     soil has nothing to do with rent so long as it flows evenly
+     (_so lange sie eben fliesst_) he is in harmony with his own
+     general conception of rarity-premiums
+     (_Seltenheitspr�mien_).]
+
+
+SECTION CL.
+
+THEORY OF RENT. (CONTINUED.)
+
+Agricultural products of equal quantity and quality are produced on
+pieces of land of unequal fertility, even when the same amount of skill
+is displayed by the husbandman, with very different outlays of capital
+and labor.[150-1] And yet the price of these products in the same market
+is uniformly the same. This price must, on the supposition of free and
+intelligent competition, be, in the long run, at least high enough to
+cover the cost of production on even the worst soil (the margin of
+cultivation according to Fawcett), which must be brought under
+cultivation in order to satisfy the aggregate want. (See � 110.) This
+worst land need yield no rent.[150-2] The better land which, with an
+equal outlay of labor and capital, produces a greater yield, furnishes
+an excess over the cost of production.[150-3] This excess is rent,
+which, as a rule, is obviously higher in proportion as the difference in
+fertility between the worst and the better land is greater. The person
+who cultivates the land of a stranger may unhesitatingly turn this rent
+over to the owner; since, notwithstanding his so doing, all that he has
+himself contributed to production in labor and capital of his own,
+returns to him entire in the product.[150-4]
+
+According to � 34, a continual increase in the amount of labor and
+capital lavished on the fertilization of land, agricultural science
+remaining the same, leads, sooner or later to this, that every new
+addition of capital or labor becomes relatively less remunerative than
+the preceding.[150-5] The worse the land is, the sooner is this point
+reached. Hence, it necessarily happens that, with an increase in the
+aggregate want of agricultural products, greater and greater amounts of
+labor and capital are employed in the further fertilization of land, and
+that there comes to be a greater difference between the fertility of the
+worst and better lands, in consequence of which the rent of the latter
+rises.[150-6]
+
+     [Footnote 150-1: _Flotow_, Anleitung zur Absch�tzung der
+     Grundst�cke nach Klassen, 1820, 50 ff., estimates the cost
+     of production of a _scheffel_ of rye on land of the first
+     class, at scarcely 1� thalers; on land of the tenth class,
+     at 3 thalers. In Hanover, it is estimated that about 60 per
+     cent. of the land devoted to gardening and agricultural
+     products produces only from 2 to 4 times the quantity of
+     seed sown; over 35 per cent. from 5 to 8 times, and 4.5 per
+     cent. from 9 to 12 times. (_Marcard_, Zur Beurtheilung des
+     Nat. Wohlstandes im K�nigreich Hanover, Tab. 3.) In Prussia,
+     the rates of net produce adopted by the central commission
+     in 1862 vary from 3 to 420 silver groschens per _morgen_, in
+     the case of agricultural land; from 6 to 420 in the case of
+     meadow land; in the case of pasturage, from 1 to 360. (_v.
+     Viebahn_, Statist. des Zollvereins, II, 966.) In England,
+     parliamentary investigations (1821) have shown that the best
+     land produces from 32 to 40, and the worst from 8 to 12
+     bushels per acre of wheat. (Edinburgh Review, XL, 21.) As to
+     the influence of the elevation of land, the royal Saxon
+     commission for the assessment of the value of land,
+     estimated that the net product of an acre _of_ land at a
+     height above the level of the sea,
+
+     In the case of 2d class land--
+       Of  500 feet, 55     per cent.
+       Of  800  "    52-1/2    "
+       Of 1600  "    48        "
+       Of 2400  "    43.8      "
+
+     In the case of 11th class land--
+       42.9 per cent. of the gross yield.
+       39-1/2  "       "       "     "
+       34      "       "       "     "
+       26      "       "       "     "]
+
+     [Footnote 150-2: The English are very fond of assuming that
+     the worst land for the time being under cultivation pays no
+     rent. (_Ricardo_, Principles, II, 2.) This fact is
+     frequently obscured by the aggregation into one economic
+     whole of land that pays no rent and land that is able to pay
+     rent. (_John Stuart Mill_, Principles, II, ch. 16, � 3.)
+     True it is that there is a great deal of land which cannot
+     be farmed out, but which can be used only by its owners.
+     Compare _Salfeld_, in the Landwirthsch. Centralb., 1871, II,
+     182 ff. On land near Wetzlar which, notwithstanding the high
+     price of land in the neighborhood, could not be farmed out
+     at auction, because no one was desirous to lease it, and
+     which was therefore turned over to the highest bidder for
+     the preceding piece, see _St�ckhardt_, Zeitschr. f�r
+     deutsche Landwirthe, 1861, 237. Where, however, all the land
+     has its own proprietors, the competition of farmers may
+     easily produce a rent for the worst land. It is a matter of
+     complete indifference to the theory of rent, whether the
+     worst land when possessed only by right of occupation or
+     used as pasturage for cattle previous to its cultivation,
+     had value or not. Compare _Nebenius_, Oeff. Credit, I, 29;
+     _Hermann_, Staatswirthsch. Unters., 170 seq.]
+
+     [Footnote 150-3: The analogous gradation in mining may make
+     this clearer.]
+
+     [Footnote 150-4: _Ricardo_ illustrated this by the following
+     example. An uncultivated tract of country is settled by a
+     small colony. As long as there is here an excess of land of
+     the best quality, and everyone may take possession of it
+     without paying anything therefor, no rent of the land which
+     is merely occupied is possible. But if all the first class
+     land is under cultivation--land which perhaps with the
+     employment of a small amount of capital yields 5 quarters an
+     acre per annum; and the increasing population necessitates
+     the cultivation of land of the second class, which with the
+     same outlay of capital yields only 4 quarters an acre per
+     annum, there arises a rent of 1 quarter an acre per annum
+     for land of the first class. For the price, 4 quarters is
+     now high enough to cover the cost of production per acre,
+     and it must be a matter of complete indifference (complete
+     indifference?) to a new comer whether he obtains 5 quarters
+     from land of the first class as a farmer and pays out 1
+     quarter, or whether he harvests 4 quarters from second class
+     land as proprietor. If there is a further increase of
+     population, so that land of the third class also, which
+     yields only 3 quarters per acre per annum, must be brought
+     under cultivation, the price of corn rises again because the
+     cost of production has now to be covered by three quarters.
+     Land of the first class now pays a rent of 2 quarters and
+     second class land of 1 quarter. (Ch. 2.)]
+
+     [Footnote 150-5: _von Th�nen_, der isolirte Staat, II, I,
+     179, estimates that a bed of manure 1/3 of an inch thick on
+     an acre of ground, increases the production by 1/2; that a
+     second 1/2 inch of manure increases the yield only by a + of
+     5/8 corn; the third of 1/4 corn, etc. _Geyer_ is of opinion
+     that, in Saxony, land of the average quality will yield a
+     gross product of 60 thalers per acre, and 14 thalers net
+     product per acre, in case it is managed with the greatest
+     intelligence and the employment of a large amount of
+     capital; when managed in a very ordinary way, it would yield
+     20 thalers gross, and 7-1/2 thalers net product. _Th�nen_
+     gives the following formula determining when it is more
+     advantageous to cultivate the old land with more
+     _intensiveness_ (higher farming) than to begin the
+     cultivation of new: As long as p - _a_q is less than
+     sqrt(ap), so long is an increase of the outlay of capital on
+     the same land more profitable than the cultivation of new
+     land, and _vice versa_. Here p = aggregate product obtained
+     by a workman in a year from the amount of capital used by
+     him; a = sum of his necessary yearly wants; _a_ = the
+     interest per annum of a capital = p; q = the amount of
+     capital given to assist the individual workman.]
+
+     [Footnote 150-6: _Ricardo_ had, in every case in which
+     outlay of capital and labor of different degrees of
+     productiveness had to be used on the same land, to suppose a
+     price of the products = the cost of the least productive
+     outlay. See the tables in _Ricardo's_ work, On the Influence
+     of a low Price of Corn on the Profits of Stock, 1815, 14
+     seq. _Schmoller_, on the other hand, rightly applies the
+     principle of united costs of production in as far as the
+     usual amount of profit of the producer is added to the cost
+     of the commodity with the highest cost of production.
+     Mittheilungen des Landwirthsch. Instituts zu Halle, 1865,
+     128. Compare _supra_, �� 106, 110.]
+
+
+SECTION CLI.
+
+THEORY OF RENT.--LAND FAVORABLY SITUATED.
+
+The favorable situation of a piece of land operates, in almost every
+politico-economical respect, in the same manner as its fertility.[151-1]
+If a market, to be fully supplied, needs to be fed from a circuit of ten
+miles, the price must be sufficient to make good not only the other cost
+of production but the freight over ten miles. Here, therefore, all
+producers living nearer to the market, who have to make a smaller outlay
+for transportation and yet obtain the same market price for their
+produce, make a profit exactly corresponding to the advantage of their
+situation.[151-2]
+
+The situation of individual pieces of land relatively to farm buildings,
+etc., operates in a similar way.[151-3]
+
+     [Footnote 151-1: _L'�loignement �quivaut � la st�rilit�._
+     (_J. B. Say._) If we imagine with _A. Walker_ an entirely
+     uncultivated country, equally fertile in every part, settled
+     only on the coast, and divided into shares of equal breadth,
+     equally accessible at all points, so that every settler has
+     unlimited space to extend his possessions from the coast
+     into the interior, the shares situated in the middle of the
+     coast strip would be most eagerly sought after; since in its
+     vicinity, prospectively, all the institutions of the country
+     would come together. The colonist, therefore, who should
+     obtain that share as his, would, unquestionably, be in a
+     condition to pay a price for this preference, that is a
+     rent. (Science of Wealth, 296.)]
+
+     [Footnote 151-2: It is a consequence both of their
+     difference of situation and of their fertility that in the
+     Himalaya the farmers low down on the sides pay 50 per cent.
+     of the gross product as farm-rent, and higher up, 20 per
+     cent. less. (_Ritter_, Erdkunde, III, 878.) Both influences
+     may be traced most accurately in East Friesland, and in
+     similar places: marsh land, sandy land, heath land, and high
+     moorland.
+
+     Its situation influences especially the money rent of land,
+     and its quality the amount of produce. (_McCulloch_,
+     Principles, III, 5.)]
+
+     [Footnote 151-3: We need only mention the hauling of the
+     crops and of manure. According to the instructions of the
+     royal Saxon commission, above mentioned, the cost is assumed
+     to be 10 per cent. higher for a distance of 250 rods, and 20
+     per cent. higher for a distance of 500 rods.]
+
+
+SECTION CLII.
+
+THE THEORY OF RENT. [CONTINUED.]
+
+From what we have said, it follows that the rent of the land of a
+country is equal at least to the sum of all the differences between the
+product of the least productive portions of capital which have been
+necessarily laid out in the cultivation of the soil and the product of
+the other portions more productively laid out by other husbandmen. It
+may rise higher than this on account of a coalition among landowners or
+immoderate competition among farmers, who may thereby be forced to
+surrender a portion of their wages and interest on capital to the
+former; but it can never lastingly fall below this amount. If the
+landowners themselves were to surrender all claim to rent, the price of
+agricultural products would not sink if the market was kept fully
+supplied; and the excess obtained from the better land over and above
+the cost of production would go, but only in the nature of a gift, to
+the farmers, corn dealers and individual consumers.[152-1] Normal rent
+is not to be explained by any mysterious or peculiar productiveness[152-2]
+of the land that yields it, but on the contrary, by the fact that even
+material forces unexhaustible in themselves, but which can be productive
+only in combination with given parcels of land, uniformly oppose even
+successively greater difficulties to every successive and additional
+improvement.[152-3]
+
+Moreover, the capital which becomes a part of the land to such an extent
+that it cannot be separated from it, and perhaps not even distinguished
+from it at sight, such for instance as has been laid out for purposes of
+drainage or in the purchase of material intended to modify the nature of
+the soil, partakes of the character of the land itself, and its yield
+obeys the laws of rent. How frequently it happens that such improvements
+made by the farmer without the least assistance from the owner of the
+land permanently contribute to an increase of the rent. (� 181.)[152-4]
+
+     [Footnote 152-1: Compare _J. Anderson_, An Inquiry into the
+     Nature of the Corn Laws, 1777. Extracts from the same in the
+     Edinburgh Review, LIV, 91 ff. On the other hand, _Buchanan_,
+     on Adam Smith, IV, 134, thinks that rent arises exclusively
+     from the monopoly of the owners, and that without it the
+     price of corn would be lower. It is certain, however, that
+     if the land of a country be considered as one great piece of
+     property, and under one great system of husbandry, the
+     products of the soil might be offered permanently at a price
+     corresponding to the average cost of production, on the
+     better and worse pieces of land. (_Umpfenback_, N. Oek.,
+     191.)]
+
+     [Footnote 152-2: _Malthus_, On the Policy of restricting the
+     Importation of foreign Corn, 1815. Additions, 1817, to the
+     Essay on the Principle of Population, III, ch. 8-12;
+     Principles, 217 ff.]
+
+     [Footnote 152-3: _Ricardo_ says that if air, water,
+     elasticity and steam were of different qualities, and might
+     be made objects of exclusive possession; and that if each
+     kind could be had only in a moderate supply, they would,
+     like land, produce a rent, according as they were brought
+     into use, one kind after another. In the class of natural
+     forces, also, the possession of a secret of production or of
+     inimitable skill, or a legal right to its exclusive use, may
+     produce something similar to rent. (_Senior_, Outlines, 91.)
+     _Hermann_, Staatswirthsch. Unters., 163 ff., had already
+     laid the foundation of this doctrine, and earlier yet,
+     _Canard,_ 17 seq., and _Hufeland_. I, 303 ff. See _supra_, �
+     120. Hence _v. Mangoldt_ uses the word rent to designate all
+     rarity-premiums. _John Stuart Mill_, III, ch. 5, 4.
+     _Sch�ffle_ speaks of the universal existence of a surplus;
+     that is, of the factor of rent (Nat. Oek., I, Aufl., 140
+     ff.), and has recently developed this into a theory
+     thoroughly systematic and detailed. (National�konomische
+     Theorie der ausschliessenden Absatzverh�ltnisse, 1867.)
+
+     According to him, rent is "the premium paid for the most
+     economic course taken in the interest of society in
+     general;" and hence he finds rent as much in superior labor
+     and in a very advantageous outlay of capital. Yet he grants,
+     that "exclusive custom (_Kundschaft_) on the basis of
+     natural advantages occurs only in the case of land-rent."
+     (59.) And even granting that he is right, that no rent is by
+     itself forever secure (74 seq.), and that much rent is a
+     premium paid for a search after and the appropriation of the
+     best land, divination of the best situations, etc. (60 ff.,
+     74 ff.), there still remains the great difference between
+     rent and the extra income from labor and capital; that here
+     the very transitory nature of the substratum, or basis, and
+     the personal merit of the recipient, is the rule, while in
+     the former case it is a rare exception. Willingly,
+     therefore, as I recognize the possibility and fruitfulness
+     of Sch�ffle's way of conceiving this subject (the latter,
+     especially, for monographic purposes), I prefer, so far as
+     the entire system is concerned, the keeping apart of the
+     three branches of income corresponding to the three factors
+     of production as has been usual since Adam Smith's time.]
+
+     [Footnote 152-4: _John Stuart Mill_, ch. 16, � 5. An example
+     in _Fawcett_, Manual, 149 seq. This explains many objections
+     to Ricardo's laws, which are the result of misconception.
+     Thus, for instance, in _Schmalz_, Staatswirthschaftslehre,
+     I, 81, Quarterly Review, XXXVI, 412 ff. _Bastiat_, Harmonies
+     �conomiques, ch. 9, where rent is considered the interest on
+     the capital laid out in bringing land under cultivation and
+     improving it. If, however, we imagine an island to emerge
+     suddenly from the waves in the vicinity of Naples, in
+     consequence of an earthquake, no one can doubt that its land
+     would sell at a very high rate and pay a very good rent. And
+     yet no capital or labor has been laid out on it. A similar
+     lesson is taught by the fact, that, in Scotland, rocks which
+     are covered twice a day by the waves are leased for the sake
+     of the sea-weed left on them. (_Adam Smith_, Wealth of
+     Nations, I, ch. 11.) Also by the fact, that in Poulopinang,
+     a cavity in which many edible swallows' nests are found,
+     pays �500 a year rent. (Geogr. Ephemeriden, Oct., 1805,
+     134.) However, _Bastiat_, abstractly speaking, is right when
+     he says, that every one by the importation of agricultural
+     products from quarters which pay no rent, and still more by
+     emigrating thither, may deprive the owners of land of the
+     tribute imminent in rent.
+
+     But how would it be if the cost of transportation and
+     emigration amounted to more than the rent? The case
+     theoretically so important, in which all the land in the
+     world is supposed to have been appropriated as private
+     property, this writer, generally so lucid, treats in a
+     surprisingly blind way (275 ff). It is remarkable that _A.
+     Walker_, Science of Wealth, spite of his prejudices in favor
+     of Bastiat's doctrines on the gratuitous nature of all
+     natural forces, nevertheless follows, essentially,
+     _Ricardo's_ theory of rent, 294 ff.
+
+     A much more vulgar error yet is, that rent is the result of
+     the capacity of the capital employed in the purchase of the
+     land to produce some interest Thus _Hamilton_, Reports to
+     the Congress on the Manufactures of the United States, 1793,
+     and _Canard_, Principes, sec. 5. Per _contra_, compare
+     _Turgot's_ view, _supra_, � 42, note 1. Even _Locke_,
+     Considerations on the Lowering of Interest, Works, II, 17
+     ff., maintained the closest parallel between rent and
+     interest to be possible, with this difference only, that
+     money was all of a kind but pieces of land of different
+     degrees of fertility. Similarly _Sir D. North_, Discourse
+     upon Trade, 1791, with his parallel of landlord and
+     stocklord.]
+
+
+SECTION CLIII.
+
+THEORY OF RENT. (CONTINUED.)
+
+Ricardo says that rent can never, not even in the slightest degree,
+constitute an element in the price of corn. This is certainly not a very
+happy way of expressing the truth, that a high rent is not the cause,
+but the effect, of a relatively high price of corn.[153-1] Ricardo would
+have been nearer right had he said that rent was not a component part of
+the price of every portion of the supply of corn brought to market.
+
+Is rent an addition to national income? Ricardo (ch. 31) answers this
+question in the negative, and says that it takes from the consumers what
+it gives to the owners of the land, and that it increases only the value
+in exchange of the national wealth.[153-2] It is evident that as thus
+stated, the question is not properly put. Neither interest on capital
+nor wages are any addition to a nation's income, but, like rent, only
+forms of trade, by means of which that income is distributed among the
+individuals constituting the nation. (� 201.)
+
+The special kind of product obtained from a piece of land influences its
+rent only in so far as the growth of that kind of product is exclusively
+confined either by nature, privilege or prejudice to certain
+land.[153-3] Adam Smith is of opinion that the rent of agricultural land
+is ordinarily (!) one-third of the gross product; that of coal mines,
+from one tenth to a maximum of one-fifth; of good lead and tin mines,
+one sixth (with the dues paid the state of twenty-one and two-thirds per
+cent.); of Peruvian silver mines, scarcely one-tenth; of gold mines,
+one-twentieth. And he thinks that rent grows less certain for every
+succeeding article.[153-4]
+
+So far as this is based on facts, it may be explained as follows: The
+greater capacity an article has for transportation from one place to
+another, the less important is advantage of situation, which is
+generally one of the chief elements of rent. The more indispensable the
+commodity is, the more readily is the consumer induced to pay a price
+for it greater than the cost of production; that is, to pay a rent. This
+again is enhanced by the difficulty of the preservation of the
+commodity. Lastly, the more it is a mere product of nature,[153-5] the
+more difficult it is to simultaneously employ several portions of
+capital of different grades of productiveness in its production.
+
+     [Footnote 153-1: To be met with in this form even in _Adam Smith_,
+     Wealth of Nations, I, ch. 11, pr. _John Stuart Mill_, Principles
+     II, ch. 16, � 6, thus states the matter: "Whoever cultivates land,
+     paying a rent for it, gets in return for his rent an instrument of
+     superior power to other instruments of the same kind for which no
+     rent is paid. The superiority of the instrument is in exact
+     proportion to the rent paid for it." According to _v. Jacob_,
+     Grunds�tze der Nat. Oek., I, 187, rent constitutes a much larger
+     portion of the price of commodities than is generally supposed, in
+     as much as wages depend so largely on the price of the means of
+     subsistence. Per contra, _Baudrillart_, Manuel, 391 ff., who
+     maintains that rent is practically insignificant.]
+
+     [Footnote 153-2: Similarly _Buchanan_, loc. cit., and _Sismondi_,
+     Richesse commerciale, I, 49. Compare contra, _Malthus_, Inquiry
+     into the Nature and Progress of Rent, 15. I would call attention
+     _en passant_ to the absurdity that there may be an increase in the
+     value in exchange of a nation's entire resources without any
+     increase in its value in use. (_Supra_, � 8.)]
+
+     [Footnote 153-3: Thus _Adam Smith_ remarks that corn fields and
+     rice fields pay very different rents, because it is not always
+     possible to convert one into the other. (Wealth of Nat., I, ch. 11,
+     1.) Compare the tabular statistical view of the rent of land used
+     for vineyards, gardens, meadows, pasturages, wood and farming
+     purposes, in _Rau_, Lehrbuch, I, � 218. For a general theory of the
+     rent of wooded land, see _Hermann_, Staatsw. Unters., 177 ff.; of
+     vineyards, 181 seq.]
+
+     [Footnote 153-4: _Adam Smith_, Wealth of Nat., I, ch. 11, 3.]
+
+     [Footnote 153-5: It is hereby rendered akin to those low stages of
+     civilization in which no rent is paid.]
+
+
+SECTION CLIV.
+
+THEORY OF RENT. (CONTINUED.)
+
+As the purchase of a piece of land[154-1] is no more and no less than
+its exchange against a portion of capital in the shape of money,[154-2]
+its purchase price depends generally on the amount it will rent for as
+compared with the interest on the capital to be given in exchange for
+it. The rate of interest remaining the same, it rises and falls with its
+rent. And _vice versa_, the rent remaining the same it rises and falls
+inversely as the rate of interest.[154-3] A rise in the price of land is
+not always a proof of the growing wealth of a people. It may proceed
+from a depreciation of the value of money, or from a decrease of the
+rate of interest caused by a decline in the number of loans which can be
+advantageously placed.
+
+It is frequently said, that the price paid for land is greater than the
+money-capital which yields an equal revenue.[154-4] This, abstraction
+made of proletarian distress prices for small parcels of land and of the
+political and social privileges of landowners, is accounted for by the
+assumed greater security of the latter,[154-5] which, however, fares ill
+enough in war times, and times of political disturbance. The fact itself
+is found to exist, I think, only in economically progressive times, when
+confidence prevails, and it is based on the pretty certain prospect that
+the rate of interest will decline, while rents will rise.[154-6]
+
+It has been observed in Belgium, that the medium farm rent of land, in
+quarters remarkable for any economic peculiarity whatever, pays an
+interest lower, as compared with the purchase money, in proportion as
+the country about is more thickly populated, and as its husbandry is
+carried on by farmers instead of by owners.[154-7] This phenomenon is
+doubtless correlated with these others, that the conditions just named
+are pretty regularly attendant on a high state of civilization, and that
+advanced civilization is attended uniformly by a decline in the rate of
+interest. (175).[154-8]
+
+     [Footnote 154-1: In every day language, people say of a man
+     who has purchased a piece of land, that he "put" as much
+     capital as is equal to the purchase price "into his land;"
+     or "laid out on it" as much. But this mode of expression is
+     as inaccurate as is this other: "the sun is rising," or "the
+     sun has gone down."]
+
+     [Footnote 154-2: _Macleod_, who is not fond of the natural
+     mode of expression, maintains that the purchase price of a
+     piece of land is equal to the discounted value of the sum of
+     the values of all the future products to be obtained from
+     the land. (Elements, 75.)]
+
+     [Footnote 154-3: C:i::L:r in which C = the capital, i = its
+     interest, L = the piece of land, and r = its rent.]
+
+     [Footnote 154-4: There are traces to be found of the fact
+     among the ancient Greeks, that the farm-rent of landed
+     estates paid a smaller interest on the purchase money than
+     was otherwise usual in the country. _Isaeus de Hagn._, 42;
+     _Salmasius_, De Modo Usur., 848.]
+
+     [Footnote 154-5: Thus even _North_ and _Locke_, loc. cit.;
+     _Cantillon_, Nature du Commerce, 294.]
+
+     [Footnote 154-6: Compare _List_, Werke II, 173. In Belgium,
+     farm-rent per _hectare_ was, in 1830 = 57.25 francs, in 1835
+     = 62.78, in 1840 = 70.44, in 1846 = 74.50, on an average.
+     This was at the rate of from 2.62 to 2.80, or an average of
+     2.67 per cent. on the purchase money. If to this we add the
+     increase in the rise of land between 1830 and 1846, divided
+     by 16, the yearly revenue rises from 2.67 to 3.91 per cent.,
+     that is pretty nearly the rate of interest on hypothecation,
+     and is higher or lower in the different provinces, as the
+     former is higher or lower. (_Heuschling_, R�sum� du
+     R�censement g�n�ral de 1846, 89.) In France, land paid but
+     from 2 to 3 per cent. on the purchase money; but both rents
+     and the price of land have doubled between 1794 and 1844.
+     (Journal des Econ., IX, 208.)]
+
+     [Footnote 154-7: Moreover, whole countries may, because of
+     their great natural advantages, possess, so far as the
+     commerce of the entire world is concerned, something
+     analogous to rent. Thus, for instance, North America,
+     although here, this world-rent finds expression in the
+     national height of the wages of labor and of the rate of
+     interest, (_v. Bernhardi_, Versuch einer Kritik der Gr�nde
+     welche f�r grosses und kleines Grundeigenthum angef�hrt
+     werden, 1848, 294.)]
+
+     [Footnote 154-8: Writers as old as _Culpeper_, A Tract
+     against the high Rate of Usurie, 1623, and _Sir J. Child_,
+     Discourse of Trade, p. 22 of the French translation,
+     observed the connection existing between a low rate of
+     interest, national wealth and a flourishing state of
+     commerce on the one hand, and a high price of the
+     necessaries of life and of land in the other. _Sir W. Petty_
+     would estimate the rent of land as follows: If a calf
+     pasturing in an open meadow gains as much flesh in a given
+     time as is equal to the cost of the food of 50 men for a
+     day, and a workman, on the same land, in the same time,
+     produces food for 60 men, the rent of the land must be 50,
+     and the rate of wages 10. (Political Anatomy of Ireland, 62
+     seq.; compare 54.) Besides, he accounts for the height of
+     rents by the density of the population exclusively, and he
+     would prefer to see both increase _ad infinitum_. (Several
+     Essays on Political Arithmetic, 147 ff.)
+
+     The germs of the _Ricardo_ law of rent, in _Boisguillebert_:
+     the price of corn determines how far the cultivation may be
+     extended; by manuring the land, as much corn as desired may
+     be obtained, provided the cost of production is covered.
+     (Trait� des Grains, II, ch. 2 ff.) There is a foreshowing of
+     the same law in the Physiocratic view that only in the
+     production of raw material is there a real excess over and
+     above the cost--_produit net_. Compare _Quesnay_, Probl.,
+     �conomique, 177 ff. Sur les travaux des artisans. (Daire.)
+     _Auxiron_, Principes de tout Gouvernement, 1776, I, 126.
+     _Adam Smith_ came very near to the true principle in the
+     case of coal mines, but was hindered reaching it in other
+     cases by the false assumption that certain kinds of
+     agricultural production always yield a rent, while others do
+     so only under certain circumstances. Besides he always
+     considered the interest of capital fixed in the soil;
+     buildings, for instance, as part of the rent. (Wealth of
+     Nat., I, ch. 11.) Compare _Hume's_ Letter to Adam Smith;
+     _Burton's_ Life and Correspondence of Hume, II, 486; _von
+     Th�nen_, Isolirter Staat., I, 15 ff.
+
+     The most immediate predecessors of _Ricardo_, Principles, 2,
+     3, 24, 31, are _Anderson_ (� 152); _West_, Essay on the
+     Application of Capital to Land, 1815, and _Malthus_, Inquiry
+     into the Nature and Progress of Rent, 1815. See � 152. It is
+     wonderful how a theory which, in 1777, remained almost
+     untouched, was in 1815 etc., attacked and defended with the
+     greatest zeal, because it then affected the differences
+     between the moneyed and landed interest. Yet _Ricardo_ did
+     not take into account at all the rent-creating influence of
+     the situation of land in relation to the market, as well as
+     to the "farm-office" (_dem Wirthschaftshofe_). The influence
+     of the system of husbandry on rent, first thoroughly treated
+     by _von Th�nen_, loc. cit. What has recently been urged
+     against _Ricardo_ by, for instance, _J. B. Say_, Trait�, II,
+     ch. 9; _Sismondi_, N. P., III, ch. 12; _Jones_, Essay on the
+     Distribution of Wealth, 1831 (see Edinburg Review, LIV),
+     bears evidence either of a misunderstanding of the great
+     thinker, or else contains only modifications of some
+     individual abstract propositions of his, stated perhaps too
+     strictly. In judging _Ricardo_, it must not be forgotten,
+     that it was not his intention to write a text-book on the
+     science of Political Economy, but only to communicate to
+     those versed in it the result of his researches, in as brief
+     a manner as possible. Hence he writes so frequently making
+     certain assumptions; and his words are to be extended to
+     other cases only after due consideration, or rather
+     re-written to suit the changed case.
+
+     _Baumstark_ very correctly says: "Rent rises, not because
+     new capital has been invested, but when the circumstances of
+     trade make a new addition to capital possible."
+     (Volkswirthschaftliche Erl�uterungen �ber Ricardo's System,
+     1838, 567.) _Fuoco's_ Nuova Teoria della Rendita, Saggi
+     economici, No. 1, is nothing but an Italian version of the
+     doctrines of Malthus and Ricardo. The greater number of
+     anti-Ricardo theories of rent have originated from the rapid
+     and apparently unlimited growth of national husbandry in
+     recent times. Thus it is a fundamental thought in
+     _Rodbertus_, Sociale Briefe, 1851, No. 3, that an increase
+     of the price of corn need not attend an increase of
+     population, either uniformly or necessarily. According to
+     _Carey_, The Past, the Present and the Future, ch. 1, 1848,
+     the most fertile land is last brought under cultivation,
+     because it is covered with swamps, forests, etc.; and
+     because it offers greater resistance to the work of the
+     agriculturist, by reason of its luxurious vegetation. The
+     more elevated lands are first cultivated which present fewer
+     obstacles to cultivation on account of their dryness, their
+     thinner crust, etc. Carey generalizes this and thinks he has
+     reversed the _Ricardo_ law of rent! He overlooks entirely
+     that _Ricardo_ speaks only of the original powers of the
+     soil. Now a swampy land which must be dried at the expense
+     of a great deal of labor, possesses less of these original
+     powers than a sandy soil which may be sown immediately. See
+     _Carey_, Essay on the Rate of Wages, 232 ff., and the
+     lengthy exposition of the same doctrine rank with inexact
+     natural science and unhistorical history in the same
+     author's Principles of Social Science, 1858, vol. I.
+
+     There is this much truth, however, in Carey's error that,
+     with increasing economic progress, the superiority not only
+     of situation, relatively to the market, but also of natural
+     fertility, may of itself go over to other lands. Thus, for
+     instance, the ancient Slaves used clay soil everywhere as
+     pasturage, and cultivated the sandy soil, because their
+     pick-axes could overcome the resistance only of the latter.
+     _Langethal_, Geschicte der deutschen Landw., II, 66;
+     _Waitz_, Schlesw. Holstein, Gesch., I, 17. Similarly in
+     Australia: _Hearne_, Plutology, 1864. Compare, _Roscher_,
+     National�konomik des Ackerbaues, � 34. The word fertility
+     should not be taken too exclusively in its present
+     agricultural sense. In a lower stage of civilization, the
+     facility of military defense or the _ut fons, ut nemus
+     placuit_--_Tacit._, Germ., 16--may have more weight.
+
+     The chief difference in the theories of rent consists in
+     this: whether rent is considered a result of production or
+     only of distribution, and an equalization of gain. Compare
+     _Behrens_, Krit. Dogmengeschichte der Grundrente, 1868, 48.]
+
+
+SECTION CLV.
+
+HISTORY OF RENT.
+
+In poor nations, and in those in a low stage of civilization, especially
+where the population is sparse, rent is wont to be low. In Turkistan,
+land is valued according to the capital invested in its
+irrigation.[155-1] In the interior of Buenos Ayres, at the beginning of
+the nineteenth century, landed estates were paid for in proportion to
+the magnitude of the live stock on them, so that it seemed, at least, as
+if the land was given for nothing, or simply thrown in with the
+purchase. And only a short time since, an English acre in the same
+country, fifteen _leguas_ from the capital, was worth from three to four
+pence, and at a distance of fifty _leguas_, only two pence.[155-2] In
+Russia, also, not long since, the valuation of landed estates was made,
+not in proportion to the superficies, but according to the number of
+souls, that is, of male serfs, a _remnant_ suggestive of the previous
+situation when no rent was paid.[155-3] Where, in relatively uncivilized
+medieval times, instances of the farming out or leasing of land occur,
+farm-rents are so small that their payment can only be considered as a
+mere recognition of the owner's continuing right of property.
+
+Under these circumstances, it is natural that great landowners,
+especially in the lower stages of civilization, should exert an
+especially great influence; and that their low tenants (_Hintersassen_)
+are more dependent in proportion to the want of capital and the absence
+of trade. Hence, these are wont to make up for the smallness of their
+rent by great honors paid to their landlords, and great services,
+especially military service.[155-4] Besides, the lords of the manor, in
+almost every medieval period, have used their influence with the
+government to cut down the wages of labor by serfdom and other similar
+institutions, and the rate of interest on capital by prohibiting
+interest, by usury laws, etc.; and thus, in both ways, to artificially
+increase their own share of the national income.
+
+     [Footnote 155-1: _A. Burnes_, Reise nach Bukhara, II, 238.]
+
+     [Footnote 155-2: _W. Maccann_, Two Thousand Miles Ride
+     through the Argentine Provinces, London, 1853, I, 20; II,
+     143. Ausland, 1843, No. 140. Frisian ancient documents in
+     which parcels of land are described as _terr� 20 animalium,
+     48 animalium_, etc. _Lacomblet_, Urkundenbuch, I, 27.
+     _Kindlinger_, M�nster Beitr., I, Urkundenbuch, 24.]
+
+     [Footnote 155-3: The custom began to be more usual in Russia
+     also to say "so many _dessjatines_ and the peasantry
+     belonging thereto." This was especially so in the case of
+     very fertile land, as for instance in Orel. See _v.
+     Haxthausen_, Studien, II, 510. Formerly the bank loaned only
+     250 per soul, afterwards up to 300 R. Bco. (II, 81). Spite
+     of this _v. Haxthausen_ thinks that rent would be illusory,
+     in Russia, in case agriculture was carried on with hired
+     workmen. (I, Vorrede, XIII.) _Carey's_ remark, "every one is
+     familiar with the fact that farms sell for little more than
+     the value of the improvements," may be true of the United
+     States (The Past, Present and Future, 60.)]
+
+     [Footnote 155-4: This condition of things continued in the
+     highlands of Scotland until the suppression of the revolt of
+     1745. The celebrated Cameron of Lochiel took the field with
+     800 tenants, although the rent of the land was scarcely
+     �500. (_Senior_, Three Lectures on the Rate of Wages, 45.)
+     "Poor 12,000 pound sterling per annum nearly subverted the
+     constitution of these kingdoms!" (_Pennant._)]
+
+
+SECTION CLVI.
+
+INFLUENCE OF ADVANCING CIVILIZATION ON RENT.
+
+Advancing civilization contributes in three different ways to raise
+rents.[156-1] The growth of population necessitates either a more
+_intensive_ agriculture (higher farming), or causes it to extend over
+less fertile parcels of land, or parcels less advantageously
+situated.[156-2] If the growth of population be attended by an increase
+of capital, this happens in a still higher degree. The people now
+consume, if not more, at least wheat of finer quality, more and better
+fed live stock; the consequence of which is, that the demands made on
+the land are increased. Lastly, if the population be gradually
+concentrated in large cities, this fact also must contribute to raise
+rents, because it requires a multitude of costly transportations of
+agricultural produce and so increases the cost of production (up to the
+time of consumption) on the less advantageously situated
+land.[156-3] [156-4]
+
+As most of the symptoms of a higher civilization become apparent
+earliest, and in the most striking manner, in large cities, so also a
+rise in rents is first felt in them. The building of houses may be
+considered as the most _intensive_ of all cultivation of land and that
+which is most firmly fixed to the soil.[156-5] Rent has nowhere an
+unsurpassable maximum any more than a necessary minimum.
+
+     [Footnote 156-1: _Jung_, Lehrbuch der Cameralpraxis, 1790,
+     182, has so little idea of this that he is of opinion that
+     farm-rent must grow ever smaller.]
+
+     [Footnote 156-2: According to _Schmoller_, in the
+     Mittheilungen des landwirthschaftlich. Instituts zu Halle,
+     1865, 112 seq., the average farm-rent of the Prussian
+     domains per _morgen_, and the population to the square mile,
+     amounted:
+
+     ===============+============+============+============+==========
+       _District._  |  _1849._   |  _1864._   |  _1849._   |  _1858._
+     ---------------+------------+------------+------------+----------
+                    |       _Thalers._        |      _Population_
+                    |                         |   _per square mile_
+     K�nigsberg,    |    0.73    |    1.16    |    2076    |    2298
+     Gumbinnen,     |    0.59    |    0.76    |    2059    |    2249
+     Danzig,        |    1.02    |    1.51    |    2656    |    2926
+     Marienwerder,  |    0.63    |    1.06    |    1944    |    2135
+     Posen,         |    0.69    |    1.07    |    2789    |    2857
+     Bromberg,      |    0.69    |    1.10    |    2116    |    2322
+     Stettin,       |    1.07    |    1.73    |    2355    |    2614
+     C�slin,        |    0.83    |    1.30    |    1735    |    1940
+     Stralsund,     |    0.95    |    1.50    |    2347    |    2549
+     Breslau,       |    1.19    |    1.45    |    4733    |    5034
+     Liegnitz,      |    1.17    |    1.75    |    3676    |    3763
+     Oppeln,        |    0.86    |    1.20    |    3973    |    4433
+     Potsdam,       |    1.08    |    1.59    |    3317    |    3640
+     Frankfort,     |    1.29    |    2.00    |    2446    |    2660
+     Magdeburg,     |    2.31    |    2.98    |    3290    |    3508
+     Werseburg,     |    2.35    |    3.03    |    3934    |    4270
+     Erfurt,        |    2.04    |    2.55    |    5621    |    5735
+     M�nster,       |    ....    |    2.03    |    3192    |    3299
+     Minden,        |    2.48    |    2.62    |    4841    |    4808
+     ===============+============+============+============+==========
+
+     Compare the review of rents in the states of the Zollverein,
+     in _v. Viehbahn_, Statistik, II, 979. It is difficult to
+     compare different countries with one another in this
+     respect, because it is seldom certain whether the word rent
+     means exactly the same thing in them. Besides, it should not
+     be overlooked, how difficult it is to ascertain what rent,
+     in the strict sense of the term, as used by _Ricardo_, is.]
+
+     [Footnote 156-3: Moreover, the rise of rents, in so far as
+     it depends on the greater cost of transportation to a
+     growing market, becomes progressively slower. The concentric
+     circles about that point increase in a greater ratio than
+     the radii.]
+
+     [Footnote 156-4: As to the history of rents in England, a
+     comparison of the years from 1480 to 1484, with the most
+     recent times, shows that the amount of rent estimated in
+     money in agricultural districts, where no very great
+     "improvements" have been made, have increased as 1 to
+     80-100, while the price of wheat has increased 12-fold and
+     wages 10-fold. (_Rogers_, in the Statist. Journal, 1864,
+     77.) According to _Hume_, History of England, ch. 33, it
+     seems that rents under Henry VIII. were only 1/10 of those
+     usually paid in his time, while the price of commodities was
+     only 1/4 of the modern. _Davenant_, Works, II, 217, 221,
+     estimates the aggregate rent of land, houses and mines, at
+     the beginning of the seventeenth century, at �6,000,000;
+     about 1698, at �14,000,000; capitalized respectively at
+     �72,000,000 and �252,000,000. About 1714, _J. Bellers_,
+     Proposals for Employing the Poor, puts it at �15,000,000;
+     about 1726, _Erasm. Phillips_, State of the Nation in
+     Respect to Commerce etc., at �20,000,000; about 1771, _A.
+     Young_, at �16,000,000; about 1800, _Beeke_, Observations on
+     the Income-Tax, at �20,000,000; about 1804, _Wakefield_,
+     Essay on Political Economy, at �28,000,000; about 1838,
+     _McCulloch_, Statist., I, 535, at �29,500,000. The poor tax
+     in England and Wales, in 1841, was on a valuation of
+     �32,655,000. (_Porter_, Progress, VI, 2, 614); 1864-5, the
+     annual value of lands, �46,403,853 (Stat. Journal, 1869.)
+     Moreover, the income from houses, railroads, etc. (real
+     property other than lands), increased very much more than
+     that received from pieces of farming land; between 1845 and
+     1864-5, the former by 392.8 per cent., and the latter by
+     27.9 per cent. (_Hildebrand's_ Jahrbb., 1869, II, 383 seq.);
+     and the income tax of 1857 on �47,109,000. There was a still
+     more rapid growth of rent in Scotland. In 1770, it was only
+     �1,000,000-1,200,000: in 1795, �2,000,000; in 1842,
+     �5,586,000. (_McCulloch_, I, 576, ff.) In Ireland, about
+     1776, it was only $900,000, according to _Petty_. (Political
+     Anatomy of Ireland, I, 113.) _A. Young_ assumed it to be
+     �6,000,000 in 1778; _Newenham_, View of Ireland, about 1808,
+     �15,000,000. In many parts of the Rosendale Forest in
+     Lancashire, the land is leased by the ell, at �121, and even
+     at �131 per acre; i. e., more than the whole forest of
+     15,300 acres was rented for in the time of James I. In many
+     of the moorland portions of Lancashire, rent has risen in
+     150 years, 1,500 and even 3,000 per cent. (Edinburg Rev.,
+     1843, Febr., 223.)
+
+     The amount of rents in Prussia, _Krug_ assumed to be in
+     1804, 50,000,000 thalers, and _von Viebahn_, Zollverein
+     Statistik, II, 974, in 1862, 116,500,000 thalers. _Lavergne_
+     assumed the rents of France after 1850 to be 1,600,000,000
+     francs (Revue des deux Mondes, Mars, 1868); and _Dutot_,
+     Journal des Economistes, Juin, 1870, in 1870, at
+     2,000,000,000. In Norway, the capitalized value of all the
+     land was assessed at 13,000,000,000 thalers in specie, in
+     1665; in 1802, at 25,500,000; in 1839, at 64,000,000
+     thalers. _Blom_, Statistik von Norwegen, I, 145. The older
+     such estimates are, the more unreliable they are.]
+
+     [Footnote 156-5: In Paris, in 1834, the square _toise_ = 37
+     sq. feet, in the Rue Richelieu and Rue St. Honor�, cost
+     1,500 to 2,000 francs; in Rue neuve Vivienne, 2,500 to 3,500
+     francs; in 1857, from 200 to 500 francs per square meter, =
+     10 sq. feet, was very usual. (_Wolowski_.) Before the gates
+     of Paris, the rent amounted to as high as 250 francs per
+     _hectare_; at Fontainebleau, to only from 30 to 40. (Journal
+     des Economistes, Mars, 1856, 337.) In Market Square,
+     Philadelphia, land was worth from 3,000 to 4,000 francs per
+     sq. _toise_, and in Wall Street, New York, about 4,000
+     francs. (_M. Chevalier_, Letters sur l'Am�rique, 1836, I,
+     355.) In St. Petersburg, after 6 years, the house frequently
+     falls to the owner of the area. (_Storch._ by _Rau_, I, 248
+     f.) In Manchester, the Custom House area cost from 10 to 12
+     pounds sterling per square yard; in the center of the city,
+     as high of �40, that is, nearly �200,000 per acre. In
+     Liverpool, in the neighborhood of the Exchange and of Town
+     Hall, the cost is from 30 to 40 pounds sterling. (Athen�um,
+     Dec. 4, 1852.) In London, a corner building on London
+     street, erected for �70,000, with only three front windows,
+     pays a rental of �22,000. (Allg. Zeitung, 1 Febr., 1866.)
+     The villa at Misenum--a very beautiful location--which the
+     mother of the Gracchi bought for about 5,000 thalers, came
+     into the possession of L. Lucullus, consul in the year B. C.
+     74, for about 33 times as much. _Mommsen_, R�misch. Gesch.,
+     II, 382.]
+
+
+SECTION CLVII.
+
+HISTORY OF RENT.--IMPROVEMENTS IN THE ART OF AGRICULTURE.
+
+Improvements in the art of agriculture which are confined to individual
+husbandmen leave rent unaffected. They do not perceptibly lower the
+price of agricultural products, and only effect an increase of the
+reward of enterprise which is entirely personal to the more skillful
+producers and does not attach to the ground itself.
+
+But how is it when these improvements become general throughout the
+country? If population and consumption remain unchanged, the supply of
+agricultural products will exceed the demand. This would compel farmers,
+if there be no avenue open to exports, to curtail their production. The
+least fertile and most disadvantageously situated parcels of land will
+be abandoned to a greater or less extent, and the least productive
+capital devoted to agriculture, withdrawn. In this way, rent goes down
+both relatively and absolutely, although the owners of land may be able
+to partially cover their loss by the gain which results to them as
+consumers and capitalists.[157-1] (� 186). After a time, however, and as
+a consequence of the diminished price of corn, population and
+consumption will increase, and entail an extension of agriculture and a
+consequent rise in rents.[157-2] If it, relatively speaking, reaches the
+same point as before, it still is absolutely much greater than before.
+Let us suppose that there are three classes of land of equal extent in a
+country, which for an equal outlay of capital produce 100,000, 80,000
+and 70,000 bushels yearly. The rent of the land here would be equal to
+at least 40,000 bushels. If the yield of production now doubles, while
+the demand for agricultural products also doubles, the aggregate harvest
+will be 200,000 + 160,000 + 140,000 bushels, and consequently rent will
+have risen to at least 80,000 bushels. But this increase of rent has
+injured no one. If the population increases in a less degree than the
+productiveness of the land, the consumer may, to a certain extent, gain
+largely, and the landowner better his condition. However, great
+agricultural improvements spread so gradually over a country, that, as a
+rule, the demand for agricultural products can keep pace with the
+increased supply. But even in this case, that transitory absolute
+decline of rent may be avoided; and it cannot be claimed universally, as
+it is by many who are satisfied with mumbling Ricardo's words after him,
+that an increase of rent is possible only by an enhancement of the price
+of the products of the soil. Where the development of a people's economy
+is a normal one, the rent of land is wont to increase gradually, but at
+the same time to constitute a diminishing quota of the entire national
+income.[157-3]
+
+Improvements in milling,[157-4] and in the instruments of
+transportation[157-5] adapted to agricultural products, and the
+introduction of cheaper[157-6] food, have the same effect as
+improvements of agricultural production. All such steps in advance
+render an increase in population, or in the nation's resources, possible
+without any corresponding increase in the amount paid to landowners as
+tribute money.[157-7]
+
+The foregoing facts furnish us the data necessary to decide what
+influence permanent soil improvements have on the rent of land.[157-8]
+The improved parcels of land now grow more fertile. Their rentability
+also increases, while that of the others becomes not only relatively but
+absolutely less, if the demand remains unaltered. The whole is as if
+capital had been transformed into fertile land, and this added to the
+improved land.
+
+     [Footnote 157-1: Since it has seemed absurd to many writers
+     to say that an improvement in the art of agriculture may
+     cause rents to decline (compare _Malthus_, Principles, I,
+     ch. 3, 8), _John Stuart Mill_, Principles, IV, ch. 3, � 4,
+     prefers to put the question thus: whether the landowner is
+     not injured by the improvement of the estates of other
+     people, although his own is included in the improvement.
+     Compare _Davenant_, Works, I, 361. And so the long
+     agricultural crisis through which Germany passed at the
+     beginning of the third decade of this century was produced
+     mainly by the great impulse given to agriculture (_Thaer_,
+     _Schuerz_ etc.), while population did not keep pace with it.
+     Similarly, at the same time, in England, _McCulloch_, Stat.,
+     I, 557 ff. Of course, the less fertile pieces of land
+     declined even relatively most in price. From 1654 to 1663,
+     Switzerland experienced a severe agricultural crisis,
+     attended with oppressive cheapness of corn, a great decline
+     in the price of land, innumerable cases of insolvency,
+     revolts of the peasantry, emigration, etc. (_Meyer von
+     Knonau_, Handbuch d. schweiz. Gesch., II, 43.) The Swiss
+     had, precisely during the Thirty Years' War which spared
+     them, so extensively developed their agricultural interests,
+     that now that other countries began to compete with them,
+     they could not find a market large enough for their
+     products. For English instances of similar "agricultural
+     distress" in the seventeenth and eighteenth centuries, see
+     _Child_, Discourse on Trade, 73, 124 seq.; _Temple_,
+     Observations upon the U. P., ch. 6; _Tooke_, History of
+     Prices, I, 23 seq., 42. Even where there have been no
+     technic improvements, a series of unusually good harvests
+     may have the same results, of which there are many instances
+     scattered through _Tooke's_ first volume.
+
+     There is great importance attached in England to the
+     difference between those agricultural reforms which save
+     land and those which effect a saving in capital and labor.
+     The latter, it is said, decrease the money rent of the
+     landowner by depreciating the price of corn, but leave the
+     corn-rent unaltered. The former, on the other hand, decrease
+     the rent both in money and corn, but the money rent in a
+     higher degree. (_Ricardo_, Principles, ch. 2; _J. S. Mill_,
+     Principles, IV, ch. 3, 4.)]
+
+     [Footnote 157-2: When the demand for products of the soil
+     which minister to luxury, such as fat meat, milk,
+     vegetables, is increasing, a greater cheapness of the
+     necessary wheat may raise rent, for the reason that lands
+     are now cultivated which were not formerly tillable. Thus,
+     there is now land in Lancashire which could not formerly be
+     planted with corn, because the laborers would have consumed
+     more than the harvest yielded. Since the large imports of
+     the means of subsistence from Ireland these lands have been
+     transformed into artificial meadows, gardens, etc.
+     (_Torrens_, The Budget, 180 ff.) Compare _Adam Smith_, I,
+     257, ed. Bas. _Banfield_ would misuse these facts to
+     overturn the theory of Ricardo. (Organization of Industry,
+     1848, 49 ff.)]
+
+     [Footnote 157-3: The French testamentary tax was on an
+     amount,
+
+       In 1835, of   552 mill. francs moveable property
+               and   984  "    immoveable.
+       In 1853, of   820  "    francs moveable property
+               and 1,176  "    immoveable.
+       In 1860, of 1,179  "    francs moveable property
+               and 1,545  "    immoveable.
+
+     so that the preponderance of immoveable property constituted
+     a converging series of 78, 43, and 31 per cent. (_Parieu._)
+     In North America, with its great unoccupied territory, the
+     reverse is the case. The census of 1850 gave a moveable
+     property of 36 per cent.; that of 1860 of only 30 per cent.
+     According to _Dubost_, the rent of land in Algeria was 80
+     per cent., a gross product of only 10-15 francs per
+     _hectare_; in Corsica, 66 per cent., a gross yield of from
+     30-35 per cent.; in the Department du Nord, 17.5-24 per
+     cent., a gross yield of from 500-740 francs. (Journal des
+     Economistes, Juin, 1870, 336 ff.)]
+
+     [Footnote 157-4: The repeated sifting of the bran (_mouture
+     �conomique_) had great influence in this respect. In France,
+     in the sixteenth century, a _setier_ of wheat gave only 144
+     pounds of bread. In 1767, according to _Malouin_, L'Art du
+     Bonlanger, it gave 192 pounds. It now gives from 223 to 240
+     pounds. The gain in barley is still greater; the _setier_
+     gives 115 pounds of flour, formerly only 58. (_Roquefort_,
+     Histoire de la Vie Priv�e des Fran�ais, I, 72 ff.
+     _Beckmann_, Beitr. zur Gesch. der Erfind., II, 54.)]
+
+     [Footnote 157-5: In the beginning of the eighteenth century,
+     the counties in the neighborhood of London addressed a
+     petition to Parliament against the extension of the building
+     of turnpike roads which caused their rents to decline, from
+     the competition of distant districts. (_Adam Smith_, Wealth
+     of Nat., I, ch. 11, 1.) Compare _Sir J. Stewart_,
+     Principles, I, ch. 10. Improvements in transportation which
+     affect the longest and shortest roads to a market in an
+     absolutely equal degree, as, for instance, the bridging of a
+     river very near the market, leave rent unaffected. (_von
+     Mangoldt_, V. W. L., 480.)]
+
+     [Footnote 157-6: _Malthus_, Principles, 231 ff. If the
+     laboring class were to become satisfied with living on
+     potatoes instead of meat and bread as hitherto, rents would
+     immediately and greatly fall, since the necessities of the
+     people might then be obtained from a much smaller
+     superficies. But after a time, the consequent increase in
+     population might lead to a much higher rent than before;
+     since a great deal of land too unfertile for the cultivation
+     of corn might be sown with potatoes, and thus the limits of
+     cultivation be reached much later.]
+
+     [Footnote 157-7: In France, between 1797 and 1847, the
+     average price of wheat did not rise at all. _Hipp. Passy_
+     mentions pieces of land which produced scarcely 12
+     hectolitres of wheat, but which now produce 20--an increased
+     yield of 170 francs, attended by an increase in the cost of
+     only 75 francs. (Journal des Economistes, 15 Oct., 1848.)
+     Moreover, it may be that a not unimportant part of modern
+     rises in the price of corn may be accounted for by the
+     better quality of the corn caused by higher farming. (_Inama
+     Sternbeg_, Gesch. der Preise, 10 seq.) Such facts, readily
+     explainable by _Ricardo's_ theory, remove the objection of
+     _Carey_, _Banfield_ and others, that the condition of the
+     classes who own no land has, since the middle ages,
+     unquestionably improved. Political Economy would be simply a
+     theory of human degradation and impoverishment, if the law
+     of rent was not counteracted by opposing causes. (_Roesler_,
+     Grunds�tze, 210.) According to _Berens_, Krit.
+     Dogmengeschichte, 213, the actual highness of rent is to be
+     accounted for by the antagonism between the "soil-law
+     (_Bodengesetz_) of the limited power of vegetation," and the
+     "progress of civilization" (but surely only to the extent
+     that the latter improves the art of agriculture). Thus, too,
+     _John Stuart Mill_, Principles, I, ch. 12; II, ch. 11, 15
+     seq.; III, ch. 4 seq.; IV, ch. 2 ff.]
+
+     [Footnote 157-8: Thus, for instance, drainage works which,
+     where properly directed, have paid an interest of from 25 to
+     70 per cent. per annum in England and Belgium on the capital
+     invested.]
+
+
+SECTION CLVIII.
+
+HISTORY OF RENT.--IN PERIODS OF DECLINE.
+
+If a nation's economy be declining, in consequence of war for instance,
+the disastrous influence hereof on rent may be retarded by a still
+greater fall in wages or in the profit on capital. But it can be hardly
+retarded beyond a certain point.[158-1] As a rule, the decline of rents
+begins to be felt by the least fertile and least advantageously situated
+land.[158-2] [158-3]
+
+     [Footnote 158-1: "The falling of rents an infallible sign of
+     the decay of wealth." (_Locke._) In England, in 1450, land
+     was bought at "14 years' purchase;" i. e., with a capital =
+     14 times the yearly rent paid, in 1470, at only "10 years'
+     purchase." (_Eden_, State of the Poor, III, App., I, XXXV.)
+     This was, doubtless, a consequence of the civil war raging
+     in the meantime. The American war (1775-82) depressed the
+     price of land in England to "23-1/4 years' purchase,"
+     whereas it had previously stood at 32. (_A. Young._) The
+     rent of land, in many places in France, declined from 10,000
+     to 2,000 livres, on account of the many wars during Louis
+     XIV.'s reign. (_Madame de S�vign�'s_ Lettres, 25 Dec, 1689.)
+     Even in 1677, it was only one-half of its former amount
+     (_King_, Life of Locke, I, 129.) The whole Bekes county
+     (_comitat_) in Hungary was sold for 150,000 florins under
+     Charles VI.; after the unfortunate war with France.
+     (_Mailath_, Oesterreich, Gesch., IV, 523.) Compare
+     _Cantillon_, Nature du Commerce, 248. In Cologne, a new
+     house was sold in the spring of 1848 for 1,000 thalers, the
+     site of which alone had cost 3,000 thalers; and there are
+     six building lots which formerly cost over 3,000 thalers,
+     now valued at only 100 thalers. (_von Reden_, Statist.
+     Zeitschr., 1848, 366.) On the other hand, Napoleon's war
+     very much enhanced English rents (_Porter_, Progress of the
+     Nation, II, 1, 150 ff.), because it affected England's
+     national husbandry principally by hindering the importation
+     of the means of subsistence. (_Passy_, Journal des
+     Economistes, X, 354.)]
+
+     [Footnote 158-2: Thus the price of lands, in Mecklenburg,
+     between 1817 and 1827, fell 30 to 40 per cent. in the least
+     fertile quarters; in the better, from 15 to 20 per cent.
+     (_von Th�nen_, in _Jacob_, Tracts relating to the Corn
+     Trade, 40, 187.) _Per contra_, see Hundeshagen Landwirthsch.
+     Gewerbelehre, 1839, 64 seq., and _Carey_, Principles, I,
+     354.]
+
+     [Footnote 158-3: The average rent in England was, in 1815,
+     17s. 3d. In the counties, it was highest in Middlesex, 38s.
+     9d.; in Rutland, 38s. 2d.; Leicester, 27s. 3d.; lowest in
+     Westmoreland, 9s. 1d. In Wales, the average was 7s. 10d.;
+     highest in Anglesea, 19s.; lowest in Merioneth, 4s. 8d. In
+     Scotland the average was 5s. 1-1/2d.; highest, Midlothian,
+     24s. 6-1/2d.; lowest, Highland Caithness, Cromarthy,
+     Inverness and Rosse, from 1s. 1d. to 1s. 5d.; Orkneys,
+     8-1/2d.; Sutherland, 6d.; Shetlands, 3d. In Ireland, the
+     average was 12s. 9d.; highest in Dublin, 20s. 1-1/2d.;
+     lowest, Donegal, 6s. (_McCulloch_, Stat., I, 544 ff.;
+     Yearbook of general Information, 1843, 193.) In France,
+     _Chaptal_, De l'Industrie Fr., 1819, I, 209 ff., estimates
+     the average yield per _hectare_ at 28 francs; in the
+     Department of the Seine, 216; Nord, 69.56; Lower Seine,
+     67.85; in the upper Alps, 6.2; in the lower Alps, 5.99: in
+     the Landes, 6.25. While in the Landes, only 20 francs a
+     _hectare_ are frequently paid, the purchase price in the
+     neighboring Medoc is sometimes 25,000 francs. (Journal des
+     Economistes, Jan. 15, 1851.) In Belgium, the average price
+     of agricultural land is 52.46; in East Flanders, 53.19; in
+     Namur, 29.24. (_Heuschling_, Statistique, 77.)]
+
+
+SECTION CLIX.
+
+HISTORY OF RENT.--RENT AND THE GENERAL GOOD.
+
+We so frequently hear rent called the result of the monopoly[159-1] of
+land, and an undeserved tribute paid by the whole people to landowners,
+that it is high time we should call attention to the common advantage it
+is to all. There is evidently danger that, with the rapid growth of
+population, the mass of mankind should yield to the temptation of
+gradually confining themselves to the satisfaction of coarse, palpable
+wants; that all refined leisure, which makes life and the troubles that
+attend it worth enduring, and which is the indispensable foundation of
+all permanent progress and all higher activity, should be gradually
+surrendered. (See � 145.) Here rent constitutes a species of reserve
+fund, which grows greater in proportion as these dangers impend by
+reason of the decline of wages and of the profit of capital, or
+interest.[159-2] Besides, precisely in times when rent is high, the sale
+and divisibility of landed estates act as a beneficent reaction against
+the monopoly of land, which is always akin to the condition of things
+created by rent.
+
+But it is of immeasurably greater importance that high rents deter the
+people from abusing the soil in an anti-economic way; that they compel
+men to settle about the centers of commerce, to improve the means of
+transportation, and under certain circumstances to engage in the work of
+colonization; while, otherwise, idleness would soon reconcile itself to
+the heaping together of large swarms of men.[159-3] The anticipation of
+rent may render possible the construction of railroads, which enable the
+land to yield that very anticipated rent.
+
+     [Footnote 159-1: "Rent is a tax levied by the landowners as
+     monopolists." (_Hopkins_, Great Britain for the last forty
+     Years, 1834.) For a very remarkable armed and successful
+     resistance of farmers in the state of New York to the claims
+     for rent of the Rensselaer family, represented by the
+     government, see _Wapp�us_ Nord Amerika, 734.]
+
+     [Footnote 159-2: _Malthus_, Additions to the Essay on
+     Population, 1817, III, ch. 10; compare also _Verri_,
+     Meditazioni, XXIV, 3. The Physiocrates call the landowners
+     _classe disponible_, since, as they may live without labor,
+     they are best adapted to military service, the civil
+     service, etc., either in person or by defraying the expenses
+     of those engaged in them. (_Turgot_, Sur la Formation etc.,
+     � 15; Questions sur la Chine, 5.)]
+
+     [Footnote 159-3: Well discussed by _Sch�ffle_, Theorie, 65,
+     72, 83. _Malthus_ considers the capital and labor expended
+     in agriculture more productive than any other, because they
+     produce not only the usual interest and wages, but also
+     rent. If, therefore, the manufacturing and commercial profit
+     of a country = 12 per cent., and the profit of capital
+     employed in agriculture = 10 per cent., a corn law which
+     compelled the capital engaged in manufactures and commerce
+     to be devoted to agriculture would be productive of
+     advantage to the national husbandry in general, if the
+     increase in rent should amount to about 3 per cent. (On the
+     Effects of the Corn Laws and of a Rise or Fall in the Price
+     of Corn on the Agriculture and the general Wealth of the
+     Country, 1815. The Grounds of an Opinion on the Policy of
+     Restricting the Importation of Foreign Corn, 1815.) Compare
+     _supra_, � 55, and the detailed rectification in _Roscher_,
+     National�konomik des Ackerbaues, etc., � 159 ff.]
+
+
+
+
+CHAPTER III.
+
+WAGES.
+
+
+SECTION CLX.
+
+THE PRICE OF COMMON LABOR.
+
+Like the price of every commodity, the immediate wages of common labor
+is determined by the relation of the demand and supply of labor. Other
+circumstances being the same, every great plague[160-1] or
+emigration[160-2] is wont, by decreasing the supply, to increase the
+wage's of labor; and a plague, the wages of the lowest kind of labor
+most.[160-3] And so, the increased demand, in harvest time, is wont to
+increase wages; and even day board during harvest time is wont to be
+better.[160-4] [160-5] In winter the diminished demand lowers wages
+again.[160-6] Among the most effective tricks of socialistic sophistry
+is, unfortunately, to caricature the correct principle: "labor is a
+commodity," into this other: "the laborer is a commodity."
+
+Moreover, common labor has this peculiarity, that those who have it to
+supply are generally much more numerous than those who want it; while
+the reverse is the case with most other commodities. Another important
+peculiarity of the "commodity" labor, is, that it can seldom be bought,
+without at the same time reducing the person of the seller to a species
+of dependence. Thus, for instance, the seller cannot be in a place
+different from that in which his commodity is. Hence a change in the
+person, etc. of the buyer very readily necessitates in the workman a
+radical change of life, and that the levelling adjustment of local
+excess and want is rendered so difficult in the case of this
+commodity.[160-7] Hence, it is that, if in the long run the exchange of
+labor against wages is to be an equitable one (� 110), the master of
+labor must, so to speak, incorporate part of his own personality into
+it, have a heart for faithful workmen and thus attach them to
+himself.[160-8]
+
+     [Footnote 160-1: High rate of Italian wages after the plague
+     in 1348, but also many complaints of the indolence and
+     dissoluteness of workmen. (_M. Villani_, I, 2 ff., 57 seq.
+     _Sismondi_, Gesch. der ital. Republiken in Mittelalter, VI,
+     39.) In England, the same plague increased the wages of
+     threshers from an average of 1.7 d. in 1348, to 3.3 d. in
+     1349. Mowers received, during the 90 years previous, 1/12 of
+     a quarter of wheat per acre; in 1371-1390, from 1/7 to 1/6.
+     The price of most of their wants was then from 1/8 to 1/12
+     as high as in _A. Young's_ time, and wages 1/4 as high.
+     (_Rogers_, I, 306, 271, 691.) The great earthquake in
+     Calabria, in 1783, produced similar effects. (_Galanti_, N.
+     Beschreiburg von Neapel, I, 450.) Compare _Jesaias_, 13, 12.
+     On the other hand, depopulation caused by unfortunate wars
+     is not very favorable to the rate of wages; instance,
+     Prussia in 1453 ff., after the Polish struggle, and Germany,
+     after the Thirty Years' War.]
+
+     [Footnote 160-2: How much it contributes to raise wages that
+     workmen can, in a credible way, threaten to move to other
+     places, is illustrated by the early high wages and personal
+     freedom of sailors. Compare _Eden_, State of the Poor, I,
+     36. In consequence of the recent great emigration from
+     Ireland, the weekly wages of farm hands in that country was
+     57.4 per cent. higher than in 1843-4. In Connaught, where
+     the emigration was largest, it was 87 per cent. higher.
+     (London Statist. Journ., 1862, 454.)]
+
+     [Footnote 160-3: Compare _Rogers_, I, 276, and _passim_.]
+
+     [Footnote 160-4: And this in proportion as the uncertainty
+     of the weather causes haste. In England, the harvest doubles
+     wages. (_Eden._) In East Friesland, it raises it from 8-10
+     ggr. to 2 thalers sometimes (_Steltzner_); in the steppes of
+     southern Russia, from 12-15, to frequently 40-50 _kopeks_.
+     This explains why the country people who come into the
+     weekly market are anxious, during harvest time, to get rid
+     of their stocks as fast as possible. According to the
+     Statist. Journal, 1862, 434, 448, the average wages in
+     harvest and other times, amounted to:
+
+                           _In harvest time._  _Other times._
+     In Scotland for males,      18s. 7d.       12s. 11-1/2d.
+       "          "  females,    11s. 4d.        5s.  7d.
+     In Ireland   "  males,      12s. 9d.        6s. 11-1/2d.
+       "          "  females,     8s. 3d.        3s.  9d.
+       "          "  males,      15s. 4d.        7s.  1-1/4d.
+       "          "  females,     7s. 1-3/4d.    3s. 11d.
+
+     The reason why the wages of females rises more in harvest
+     time than the wages of males may be the same that in many
+     places in Ireland has made emigration more largely increase
+     the wages of women. (l. c., 454.) Every excess of workmen
+     depresses, and every scarcity of workmen enhances the wages
+     of the lowest strata relatively most.]
+
+     [Footnote 160-5: The wages of English sailors was usually
+     40-50 shillings a month. During the last naval war, it rose
+     to from 100 to 120, on account of the great demand created
+     by the English fleet. (_McCulloch_, On Taxation, 40.)]
+
+     [Footnote 160-6: The winter wages of German agricultural
+     laborers varies between 6.1 and 20 silver groschens; summer
+     wages between 7.9 and 27.5 silver groschens. _Emminghaus_,
+     Allg. Gewerbelehre, 81, therefore, advises that in winter
+     the meal time of workmen in the fields should be postponed
+     to the end of the day, and winter wages then made less low
+     than at present.]
+
+     [Footnote 160-7: _W. Thornton_, On Labour, its wrongful
+     Claims and rightful Dues, its actual, Present and possible
+     Future, 1869, II, ch. 1. _Harrison_, Fortnightly Review,
+     III, 50.]
+
+     [Footnote 160-8: Just as the husband binds himself in
+     marriage. While in concubinage there is apparent equality,
+     it costs the woman a much greater sacrifice than the man.]
+
+
+SECTION CLXI.
+
+WAGES OF LABOR.--THE MINIMUM OF WAGES.
+
+Human labor cannot, any more than any other commodity, be supplied, in
+the long run, at a price below the cost of production.[161-1] [161-2] The
+cost of production here embraces not only the necessary or customary
+means of subsistence of the workman himself, but also of his family;
+that is, of the coming generation of workmen. The number of the latter
+depends essentially on the demand for labor. If this demand be such that
+it may be satisfied by an average of six children to a family, the rate
+of wages must be such as to support the workman himself and to cover the
+cost of bringing up six children.[161-3] Where it is customary for the
+wife and child, as well as for the father, to work for wages, the father
+does not need to earn the entire support of the family, and hence
+individual wages may be smaller.[161-4] But if it were to fall below the
+cost mentioned above, it would not be long before increased mortality
+and emigration, and a diminution of marriages and births would produce a
+diminution of the supply; the result of which would be, if the demand
+remained the same, a renewed rise of wages.
+
+Conversely, it would be more difficult for the rate of wages to be
+maintained long much above that same cost, in proportion as the
+gratification of the sexual appetite was more generally considered the
+highest pleasure of sense, and the love of parents for their children as
+the most natural human duty. As Adam Smith says, where there is a great
+demand for men, there will always be a large supply of them.[161-5]
+
+     [Footnote 161-1: Compare _Engel's_ beautiful lecture on the
+     cost of labor to itself (_Selbstkosten_ = _self-cost_),
+     Berlin, 1866.]
+
+     [Footnote 161-2: _Wolkoff_ zealously and rightly argues,
+     that the minimum wages is not the _taux naturel_ of wages.
+     (Lectures, 118 ff., 284.) _von Th�nen_ also divides wages
+     into two component parts--that which the workman must lay
+     out in his support in order to continue able to work, and
+     that which he receives for his actual exertion. (Isolirter
+     Staat., II, 1, 92 seq.)]
+
+     [Footnote 161-3: _Gasparin_ distinguishes five periods in
+     the career of a workman generally: a, he is supported by his
+     parents; b, he supports himself and is in a condition to
+     save something; c, he marries, and supports his children
+     with trouble; d, the children are able to work, and the
+     father lives more comfortably; e, his strength and resources
+     decline. (_Villerm�_, Tableau de l'�tat physique et moral
+     des Ouvriers, 1840, II, 387.)]
+
+     [Footnote 161-4: _Cantillon_, Nature du Commerce, etc.,
+     1755, is of opinion that a day laborer, to bring up two
+     children until they are grown, needs about as much as he
+     does for his own support; and that his wife may, as a rule,
+     support herself by her own work. (42 ff.) In Germany, it is
+     estimated that, in the case of day laborers, a woman can
+     earn only from 1/3 to 1/2 of what her husband does; mainly
+     because she is so frequently incapacitated for work by
+     pregnancy, nursing, etc. (_Rau_, Lehrbuch, I, � 190.) In
+     France, in 1832, a man working in the fields earned, on an
+     average, 1-1/4 francs a day, the wife 3/4 of a franc (200
+     days to the year), the three children 38/100 francs (250
+     days to the year), an aggregate of 650 francs per annum.
+     (_Morogues._) In England, the average amount earned in the
+     country was for males, per annum, �27 17s.; (munications
+     relative to the Support and Maintenance of the Poor, 1834,
+     p. LXXXVIII.) The wife of an English field hand, without
+     children, earns 1/3 more than one with children. In the case
+     of mothers, a difference of fewer or more children is
+     unnoticeable in the effects on wages. (London Statist.
+     Journal, 1838, 182.) In the spinning factories in
+     Manchester, in 1834, children between 9 and 10 years of age
+     were paid, weekly, from 2s. 9d. to 2s. 10d.; between 10 and
+     12, from 3s. 6d. to 3s. 7d.; between 12 and 14, from 5s. 8d.
+     to 5s. 9d.; between 14 and 16, from 7s. 5d. to 7s. 6d.
+     (Report of the Poor Commissioners, 204.) Those manufactures
+     which require great physical strength, like carpet and
+     sail-cloth weaving, and those carried on in the open air and
+     in all kinds of weather, allow of no such family competition
+     and debasement of wages. (_Senior_ in the Report of the
+     parliamentary Committee on Hand Weavers, 1841.)]
+
+     [Footnote 161-5: Similarly, _J. M�ser_, Patriot. Phant., I,
+     40. _Adam Smith_ infers from the following symptoms in a
+     country that wages are higher there than the indispensable
+     minimum, viz.: if wages in summer are higher than in winter,
+     since it is seldom that enough is saved in summer to satisfy
+     the more numerous wants of winter; if wages vary less from
+     year to year and more from place to place than the means of
+     subsistence, it they are high even where the means of
+     subsistence are cheapest. (Wealth of Nat., I, ch. 8.)]
+
+
+SECTION CLXII.
+
+COST OF PRODUCTION OF LABOR.
+
+The idea conveyed by the expression necessaries of life is, within
+certain limits, a relative one. In warm countries, a workman's family
+needs less clothing, shelter, fuel and even food[162-1] than in cold
+countries. This difference becomes still more striking when the warm
+countries possess absolutely cheaper food as, for instance, rice,
+Turkish wheat, bananas etc. Here, evidently, other circumstances being
+the same, the rate of wages may be lower.[162-2] The cultivation of the
+potato has operated in the same direction; since an acre of land planted
+with potatoes yields, on an average, twice as much food as the same acre
+planted with rye.[162-3] In France, two-thirds of the population lived
+almost without animal food, on chestnuts, Indian corn, and potatoes
+(_Dupin_), while in England, malt, hops, sugar, brandy, tea, coffee,
+tobacco, soap, newspapers, etc. are described as "articles chiefly used
+by the laboring classes." (_Carey_.)
+
+The standard of decency of the working class also has great influence
+here. The use of blouses in Paris has nothing repulsive, nor that of
+wooden shoes in many of the provinces of France, nor the absence of
+shoes in lower Italy; while the English workman considers leather shoes
+indispensable, as he did only a short time ago a cloth coat. Compare
+_infra_, � 214.[162-4]
+
+     [Footnote 162-1: Explained since _Liebig's_ time by the fact
+     that a part of food is consumed to preserve animal heat:
+     means of respiration in contradistinction to means of
+     nutrition. Recent research has shown that in cold weather
+     more urea and also more carbonic acid are given off; hence
+     the means of supplying this deficit should be greater in
+     cold weather than in warm. This more rapid transformation is
+     wont, when nutrition is sufficient, to be accompanied by
+     more energetic activity. (_Moleschott_, Physiologie der
+     Nahrungsmittel, 1850, 47, 50, 83.)]
+
+     [Footnote 162-2: This is opposed in part by the fact that a
+     hot climate induces indolence, and that therefore he needs a
+     greater incentive to overcome his disposition to idleness.
+     Thus, in the cooler parts of Mexico, the rate of wages was
+     26 sous a day, in the warmer, 32 sous. (_Humboldt_, N.
+     Espagne, III, 103.)]
+
+     [Footnote 162-3: According to _Engel_, Jahrbuch f�r Sachsen,
+     I, 419, on acres similarly situated and under similar
+     conditions, the lowest yielded:
+
+                _Watery contents  _Watery contents
+                   included._        excluded._
+
+     Of wheat,      1,881 lbs.       1,680 lbs.
+      " rye,        1,549  "         1,404  "
+      " pease,      1,217  "         1,095  "
+      " potatoes,  21,029  "         5,257  "
+
+     The dry substance of these products yielded:
+
+              _Azotized                  _Mineral
+             Substance._    _Fecula._     Matter._
+
+     Wheat,      282 lbs.    879 lbs.     49 lbs.
+     Rye,        243  "      661  "       34 lbs.
+     Pease,      309  "      431  "       33 lbs.
+     Potatoes,   525  "    3,785  "      178 lbs.
+
+     In Saxony, from 1838 to 1852, the average prices stood as
+     follows:
+
+                               _Of Rye._ _Of Wheat._ _Of Potatoes._
+
+     One lb. of dry substance,      1       1.28           .95
+     One lb. of protein substance,  1       1.11          1.78
+     One lb. of fecula,             1       1.14          0.72
+
+     (loc. cit.) The high price of protein in wheat depends
+     probably on the more agreeable appearance and pleasanter
+     taste of wheat flour; the still higher price of potato
+     protein on the exceedingly easy mode of its preparation.]
+
+     [Footnote 162-4: As regards food alone, the cost of the
+     support of a plowman on Count Podewil's estate, reduced by
+     _Rau_, Lehrbuch, � 191, to the unit of rye, is annually
+     1,655 lbs. of rye. According to _Koppe_, it is 1,952 lbs.;
+     to _Block_, 2,300 lbs.; to _Kleemann_, from 1,888 to 2,552
+     lbs.; to _M�llenger_, 2,171 lbs. The first three estimate
+     the cost in meat at 78, 160 and 60 pounds. Compare _Block_,
+     Beitr. Z. Landg�tersch�tzungskunde, 1840, 6. Exhaustive
+     estimates for all Prussian governmental districts in _von
+     Reden_, Preussische Erwerbs, und Verkehrsstatistik, 1853, I,
+     177 ff., according to which the requirement, per family,
+     varies between 71 thalers in Gumbinnen and 204 thalers in
+     Coblenz, the average being 105 thalers. According to more
+     recent accounts, a laborer's family in East Prussia, gangmen
+     not included, get along very well on 177 thalers per annum.
+     (_von der Goltz_, L�ndl. Arbeiterfrage, 1872, 9 ff.) In
+     Mecklenburg, omitting _Hofg�nger_, on 183 thalers. (Ann.
+     des. patr. Vereins, 1865, No. 26.)
+
+     The necessary outlay of the family of an agricultural day
+     laborer in England, in 1762, was estimated as follows: for
+     bread and flour, �6 10s. per annum; for vegetables and
+     fruit, �1 1-2/3s.; for fuel, light and soap, 2-9-5/6s.; for
+     milk, butter and cheese, �1 1-6-5/6s.; for meat, �1 6s.; for
+     house-rent, 1-6s.; for clothing, bedding, etc., 2-16-1/3s.;
+     for salt, beer and colonial wares, 1-16-5/6s.; for medicine,
+     expenses attending confinement of wife, etc., 1-6-1/2s. (_J.
+     Wade_, History of the middle and working Classes, 1853,
+     545.) Concerning 1796, compare _Sir F. M. Eden_, State of
+     the Poor, I, 660, 1823; _Lowe_, on the present Condition of
+     England. Compare on the receipts and expenses of ten working
+     families in and about M�hlhausen, the tables in the Journal
+     des Economistes, October, 1861, 50; and further
+     _Ducp�tiaux_, Budgets �conomiques des Classes ouvri�res en
+     Belgique, 1855. According to _Playfair_ in _Knop_,
+     Agriculturchemie, I, 810, ff., different classes of grown
+     men need daily food.
+
+     ==================+=========+========+========+========+========
+        GRAMMES.       |  _1._   |  _2._  |  _3._  |  _4._  |  _5._
+     ------------------+---------+--------+--------+--------+--------
+     Plastic material, |  56.70  |  70.87 | 119.07 | 155.92 | 184.27
+     Fat,              |  14.70  |  28.35 |  51.03 |  70.87 |  70.87
+     Starch,           | 340.20  | 340.20 | 530.15 | 567.00 | 567.00
+     ==================+=========+========+========+========+========
+
+     Here 1 stands for a convalescent who can bear only enough to
+     preserve life; 2, the condition of rest; 3, moderate motion
+     of from 5 to 6 English miles' walk daily; 4, severe labor =
+     a walk of 20 English miles daily; 5, very severe labor = to
+     a day's walk of 14 English miles, with a load weighing 60
+     lbs. If the fat be given in terms of starch, the aggregate
+     need of both substances in the case of 1 is 6.6 times as
+     great as the need of plastic substance; in the case of 2, 3,
+     4, and 5, respectively 5.7, 5.2, 4.8 and 4.0 times as much.
+
+     A Dutch soldier doing garrison duty receives daily, in times
+     of peace, 0.333 kilogrammes of wheat flour, 0.125 of meat,
+     0.850 of potatoes, 0.250 of vegetables, containing in the
+     aggregate 60 grammes of albumen. In forts, where the service
+     is more severe, he receives 0.50 kilogrammes of wheat flour,
+     0.06 of rice or groats, with an aggregate amount of 116
+     grammes of albumen. (_Mulder_, Die Ern�hrung in ihrem
+     Zusammenhange mit dem Volksgeiste, �bersetzt _von
+     Molecshott_, 1847, 58 seq.) According to the researches of
+     Dr. Smith, in order to avoid the diseases caused by hunger,
+     a man needs, on an average, to take 4,300 grains of carbon
+     and 200 grains of nitrogen in his daily food; a woman 3,900
+     grains of carbon and 180 grains of nitrogen. In 1862, the
+     workmen in the famishing cotton industries of Lancashire
+     were actually reduced to just about this minimum. (_Marx_,
+     Kapital, I, 642.) Death from starvation occurs in all
+     vertebrates when the loss of weight of the body, produced by
+     a want of food, amounts to between two-fifths and one-half
+     of what it was at the beginning of the experiment.
+     (_Chossat_, Recherches exp�rimentales sur l'Inanition, 184,
+     3.)]
+
+
+SECTION CLXIII.
+
+WAGES OF LABOR.--POWER OF THE WORKING CLASSES
+OVER THE RATE OF WAGES.
+
+In this way, the working classes hold in their own hands one of the
+principal elements which determine the rate of wages; and it is wrong to
+speak of an "iron law" which, under the control of supply and demand,
+always reduces the average wages down to the means of subsistence.[163-1]
+For the moment, indeed, not only individual workmen, but the whole
+working class is master of the supply of its commodity only to a very
+small extent; since, as a rule, the care for existence compels it to
+carry, and that without interruption, its whole labor-power to market.
+But it is true that the future supply depends on its own will; since,
+with an increase or decrease in the size of the families of workingmen,
+that supply increases or diminishes. If, therefore, by a favorable
+combination of circumstances, wages have risen above the height of
+urgent necessity, there are two ways open to the working class to take
+advantage of that condition of things. The workman either raises his
+standard of living, which means not only that his necessary wants are
+better satisfied, his decencies increased and refined, but also and
+chiefly, that the intellectual want of a good prospect in the future,
+which so particularly distinguishes the honorable artisan from the
+proletarian is taken into consideration. And it is just here that a
+permanent workingmen's union, which should govern the whole class, might
+exert the greatest influence. Their improved economic state can be
+maintained only on condition that the laboring class shall create
+families no larger than they hope to be able to support consistently
+with their new wants.[163-2]
+
+Or, the laboring class continues to live on as before, from hand to
+mouth, and employ their increased resources to gratify their sexual
+appetite earlier and longer than before, thus soon leading to an
+increase of population.
+
+The English took the former course in the second quarter of the last
+century, when English national economy received a powerful impetus, and
+the large demand for labor rapidly enhanced the rate of wages. The
+Scotch did in like manner a generation later. The second alternative was
+taken by the Irish, when the simultaneous spread of the cultivation of
+the potato[163-3] and the union with England, at the beginning of the
+nineteenth century, gave an extraordinary extension to their resources
+of food. While the population of Great Britain, between 1720 and 1821,
+did little more than double, the population of Ireland increased from
+2,000,000 to nearly 7,000,000 between 1731 and 1821. No wonder,
+therefore, that the average wages of labor was twenty to twenty-four
+pence per day in the former, and in the latter only five pence.
+(_MCCulloch._)[163-4]
+
+Naturally enough, this difference of choice by the two peoples is to be
+explained by the difference in their previous circumstances. The Irish
+people, robbed by violence of their own higher classes, and, therefore,
+and on this account precisely, almost entirely destitute of a middle
+class, had lost the check on increase they possessed in the middle ages,
+without having as yet assimilated to themselves the checks which come
+with a higher stage of culture. Their political, ecclesiastical and
+social oppression allowed them no hope of rising by temporary sacrifices
+and energetic efforts permanently to a better condition as citizens or
+gentlemen. Only the free man cares for the future. Hence, the sexual
+thoughtlessness and blind good nature, the original tendencies of the
+Irish people, necessarily remained without anything to counterbalance
+them. It always supposes a high degree of intelligence and
+self-restraint among the lower classes, when an increase in the
+thing-value, or the real value of wages, does not produce an increase in
+the number of workmen, but in their well-being. The individual is too
+apt to think that it matters little to the whole community whether he
+brings children into the world or not, a species of egotism which has
+done most injury to the interests in common of mankind. As a rule, it
+requires a great and palpable enhancement of wages to make workmen, as a
+class, raise their standard of living.[163-5] [163-6]
+
+     [Footnote 163-1: Compare _Lassalle_, Antwortschreiben an das
+     Central Comite zur Berufung eines allg. deutschen
+     Arbeitercongresses, 1863, 15; also _Turgot_, sur la
+     Formation etc., � 6. When _Lassalle_ says that when a varied
+     standard of living has become a national habit it ceases to
+     be felt as an improvement, he says what is in a certain
+     sense true. But is the man to be pitied who, absolutely
+     speaking, is getting on well enough; relatively speaking,
+     better off than before; but who is only not better off than
+     other men?]
+
+     [Footnote 163-2: A case in Holstein, in which, in the first
+     half of the eighteenth century, the serfs of a hard master
+     conspired together not to marry, and thus soon forced him to
+     sell his estate. (_B�sch_, Darstellung der Handlung, V, 3,
+     II.)]
+
+     [Footnote 163-3: On the otherwise remarkable economic
+     advance in Ireland about 1750, see _Orrey_, Letters
+     concerning the Life and Writings of Swift, 1751, 127;
+     _Anderson_, Origin of Commerce, a., 1751.]
+
+     [Footnote 163-4: Compare especially _Malthus_, Principles,
+     ch. 4, sec. 2. How little Adam Smith dreamt of this may be
+     best seen in I, 115, Bas. Recently, the average wages per
+     week amounted in England to 22-1/2s., in Scotland to
+     20-1/2s., in Ireland to 14-3/4s. (_Levi_, Wages and Earnings
+     of the working Classes, 1866.)]
+
+     [Footnote 163-5: Thus the unheard of long series of
+     excellent harvests in England, between 1715 and 1765,
+     contributed very largely to this favorable transformation.
+     Day wages expressed in wheat, between 1660 and 1719,
+     amounted on an average to only about 2/3 of a peck; between
+     1720 and 1750, to an entire peck. In the fifteenth century,
+     a similar series of good harvests contributed very much to
+     the flourishing condition of the "yeomanry." Under Henry
+     VII., workmen earned from two to three times as much corn as
+     they did a century later. And so in France, the great
+     Revolution at the end of the eighteenth century, by setting
+     free a vast quantity of hitherto bound-up force, enhanced
+     the productiveness of the entire economy of the nation, and
+     made the division of the national income more nearly equal.
+     There is an essential connection here between the rapidity
+     of the transition and the facts, that the habits of
+     consumption of the working class received a powerful
+     impulse, and that population increased much less rapidly
+     than the national income. Compare _John Stuart Mill_,
+     Principles, II, ch. 11, 2. In our own days again, English
+     workmen had a splendid opportunity to raise their standard
+     of life. Emigration to Australia, etc. preponderated over
+     the natural increase of population to such an extent that,
+     in 1852, for instance, only 217,000 more human beings were
+     born in England and Wales than died, and 368,000 emigrated.
+     At the same time, exports increased: in 1849, they were
+     �63,000,000; in 1850 �71,000,000; about the end of 1853,
+     something like �90,000,000.
+
+     This golden opportunity was used by the English laboring
+     classes to both largely multiply marriages and to enhance
+     the rate of wages. The number of marriages contracted in
+     England yearly, from 1843 to 1847, was 136,200; from 1853 to
+     1857, 159,000. The number of births annually, from 1843 to
+     1847, was 544,800; from 1853 to 1857, 640,400. And wages, in
+     a number of industries, rose, between 1839 and 1859, from
+     about 18 to 24 per cent. (Quarterly Review, July, 1860, 86),
+     while the prices of most of the necessaries of life
+     declined. That, in the same time, the condition of English
+     laborers was elevated, both intellectually and morally, is
+     proved by many facts cited in _Jones' and Ludlow's_ work on
+     the social and political condition of the laboring classes
+     in England. In Germany, the recent establishment of peace on
+     a firm footing and the French war contributions have given
+     the country an impulse which might be taken advantage of by
+     the laboring class with the happiest results if they would
+     accustom themselves to more worthy wants and at the same
+     time preserve their accustomed industry.]
+
+     [Footnote 163-6: The cheapening of the necessaries of life,
+     experience shows, is more likely to lead to an increase of
+     population; that of luxuries, to a raising of the standard
+     of life or of comfort.]
+
+
+SECTION CLXIV.
+
+WAGES.--COST OF PRODUCTION OF LABOR.
+
+As the cheapening of the means of subsistence, when the circle of wants
+of the laboring class has not correspondingly increased, leads to a
+decline of wages, so an enhancement of their price must, when wages are
+already so low as only to be able to satisfy indispensable wants,
+produce an increase in the rate of wages. The transition in the former
+case is as pleasing as in the latter it is replete with the saddest
+crises.[164-1] The slower the rise in the price of the means of
+subsistence is, the more it is to be feared that the working classes
+will seek to meet it, not by emigration or by a diminished number of
+marriages, but by decreasing the measure of their wants, the
+introduction of a poorer quality of food, etc.[164-2]
+
+However, all this is true only of permanent changes in the average price
+of the means of subsistence, such as are produced, for instance, by the
+development of agriculture, by taxation etc. Transitory fluctuations,
+such as result, for instance, from a single good or bad harvest, cannot
+have this result.[164-3] It is, in poor countries at least, one of the
+worst effects of a bad harvest, that it tends to positively lower the
+rate of wages. A multitude of persons who would otherwise be able to
+purchase much labor are now deterred from doing so, by the enhancement
+of the price of food.[164-4] On the other hand, the supply increases:
+many men who before would not work even for money, see themselves now
+compelled to do so. Those who have been workmen hitherto are compelled
+by want to make still greater exertions.[164-5]
+
+In very cheap years, all this is naturally reversed.[164-6]
+
+     [Footnote 164-1: According to _McCulloch_, Edition of _Adam
+     Smith_, 472, the food of a day laborer's family constitutes
+     between 40 and 60 per cent. of their entire support. In the
+     case of Prussian field hands, it is generally 54 per cent.
+     greatest in the province of Saxony, viz., 58 per cent. and
+     lowest in Posen, 43 per cent. Compare _Rau_, Lehrbuch, I, �
+     191. This may serve as a point of departure, from which to
+     measure the influence of a given enhancement of the price of
+     corn. In opposition to _Buchanan_ (Edition of _Adam Smith_,
+     1817, 59), who had denied the influence of the price of the
+     means of subsistence on the rate of wages, see _Ricardo_,
+     Principles, ch. 16.]
+
+     [Footnote 164-2: How easily English farmers have accustomed
+     themselves to the consequences of momentary calamities, may
+     be seen from _John Stuart Mill_, Principles, II, ch. 11, 5
+     seq.; _Thornton_, Population and its Remedy, 1846, passim.
+     _Malthus_, Principles, sec. 8, shows in opposition to
+     _Ricardo_, Principles, ch. 8, that it is not all one to the
+     laboring classes whether their wages rise while the price of
+     the means of subsistence remains the same, or whether the
+     rate of wages remaining nominally the same, the commodities
+     to be purchased decline in price. If for instance,
+     potato-food, physiologically considered, was just as good as
+     flesh-food and wheat bread, yet an unmarried workman or a
+     father with a number of children below the average would be
+     able to save less from the former for the reason that it
+     possesses less value in exchange. (Edinburg Rev., XII, 341.)
+     Thus, e. g., in Ireland, between _A. Young_ and _Newenham_
+     (1778-1808), the rate of wages increased more than the price
+     of potatoes, but all other means of subsistence in a still
+     greater ratio. (_Newenham_, A view of Ireland, 1808.)
+     Compare _Malthus_, On the Policy of Restricting the
+     Importation of foreign Corn, 1815, 24 ff.; contra.
+     _Torrens_, on the Corn trade, 1820, 374 ff.]
+
+     [Footnote 164-3: Compare _Garve_ in _MacFarlan_, On
+     Pauperism, 1785, 77. Thus, in the United States, the same
+     quantities of coffee, leather, pork, rice, salt, sugar,
+     cheese, tobacco, wool, etc., could be earned in 1836 by 23.5
+     days' labor; in 1840, by 20.75; in 1843, by 14.8; in 1864,
+     by 34.6. (_Walker_, Science of Wealth, 256.)]
+
+     [Footnote 164-4: The person who formerly consumed perhaps
+     four suits of clothes in a year now limits himself to two,
+     and forces the tailor to dismiss one journeyman. In Bavaria,
+     the dear times, 1846-47, and probably also the disturbances
+     of 1848-49, caused officials, pensioners, annuitants and
+     professional men to discharge one-tenth of the female
+     domestics they employed in 1840. (_Hermann_, Staatsw.
+     Unters, II, Aufl., 467.)]
+
+     [Footnote 164-5: The labor of digging during the time of
+     scarcity in England was paid one-third of the price usually
+     paid in good years. (_Porter_, Progress of the Nation, III,
+     14, 454.) On the Slavic portions of Silesia, see
+     _Hildebrand's_ Jahrb., 1872, I, 292. According to _Rogers_,
+     I, 227 ff., 315 ff., and the table of prices in the appendix
+     to _Eden_, State of the Poor, the price in England of a
+     quarter of wheat and a day's wages was, in--
+
+          1287,      2s.  10-1/4d.     3d.
+          1315,      14s. 10-7/8d.     3d.
+          1316,      15s. 11-7/8d.     3-7/8d.
+          1392,       3s.  2-5/8d.     5d.
+          1407,       3s.  4d.         3d.
+          1439,  8s.-26s.  8d.         4-1/2d.
+          1466,       5s.  8d.       4-6d.
+          1505,       6s.  8d.         4d.
+          1575,      20s.              8d.
+          1590,      21s.            3-6d.
+          1600,                       10d.]
+
+     [Footnote 164-6: _Petty_, Several Essays on Political
+     Arithmetic, 133 ff. _Adam Smith_, Wealth of Nat., I, ch. 8.
+     _Ricardo_, Principles, ch. 9. In Hesse, in consequence of a
+     series of many rich harvests from 1240 to 1247, no servants
+     could be had at all, so that the nobility and clergy were
+     obliged to till their own lands. (_Anton_, Gesch. der
+     deutschen Landwirthschaft, 111, 209.)]
+
+
+SECTION CLXV.
+
+WAGES.--THE DEMAND FOR LABOR.
+
+The demand for labor, as for every other commodity, depends, on the one
+hand, on the value in use of it, and on the other, on the purchaser's
+capacity to pay for it (his solvability), These two elements determine
+the maximum limit of wages, as the means of support considered
+indispensable by the workmen determine the minimum. There are
+circumstances conceivable under which the rise in wages might entirely
+eat up rents; but there must always be a portion of the national income
+reserved to reward capital (its profit). If wages were to absorb the
+latter also, the mere owner of capital would cease to have any interest
+in the progress of production. Capital would then be withdrawn from
+employment and consumed.[165-1] Obviously, no man engaged in any
+enterprise can give more as wages to his workmen than their work is
+worth to him.[165-2] Hence the additional product in any branch of
+industry, due to the labor of the workman last employed, has a
+controlling influence on the rate of the wages which can be paid to his
+fellow workmen. If the additional products of the workmen successively
+last employed constitute a diverging series,[165-3] the last term in the
+series is the natural expression of the unsurpassable maximum of wages;
+if they constitute a converging series, men the employer can pay the
+last workman higher wages than the additional product due to him;
+provided, however, that the reduction which is to be expected in the
+case of the workmen previously employed to the same level still leaves
+him a sufficiently high rate of profit.[165-4] Hence the growing skill
+of a workman, in and of itself, makes an increase of his wages
+possible;[165-5] while, conversely, if he can be replaced by capital,
+which always relatively decreases the value in use of his labor, there
+is a consequent pressure on his wages.
+
+     [Footnote 165-1: _Storch_, Handbuch, I, 205 seq.]
+
+     [Footnote 165-2: Higher wages promised, for instance, as a
+     reward for saving a human life or some other very precious
+     thing in great danger of being destroyed. In the case of
+     material production, labor is worth to the party engaged in
+     the enterprise, at most, as much as the price of the product
+     after the remaining cost of reproducing it is deducted.]
+
+     [Footnote 165-3: Possibly in consequence of a better
+     division of labor or of some other advance made in the
+     technic arts.]
+
+     [Footnote 165-4: Thus, for instance, in harvesting potatoes,
+     if, after they have been ploughed up, only those nearest the
+     surface are collected, a laborer can gather over thirty
+     Prussian _scheffels_ in a day. But the fuller and completer
+     the gathering of potatoes desired is, the smaller will be
+     the product of one workman and of one day's labor. If,
+     therefore, a man wants to gather even the last bushel in a
+     potato field of 100 square rods, so much labor would be
+     required to accomplish it that the workman would not gather
+     enough to feed him during his work, to say nothing of
+     supplying his other wants. Supposing that 100 _scheffels_ of
+     potatoes had grown on 100 square rods, and that of these
+     were harvested--
+
+     _When the number of      _Then the additional yield
+      men employed in          obtained by the
+      gathering them was_      last workman employed is_
+
+          4,    80   scheffels,
+          5,    86.6     "        6.6 scheffels.
+          6,    91       "        4.4     "
+          7,    94       "        3       "
+          8,    96       "        2       "
+
+     (_von Th�nen_, Der isolirte Staat, II, 174 ff.)]
+
+     [Footnote 165-5: In Manchester, in 1828, the wages paid for
+     spinning one pound of cotton yarn, No. 200, was 4s. 1d.; in
+     1831, only from 2s. 5d. to 2s. 8d. But, in the former year,
+     the spinner worked with only 312 spools; in the latter, with
+     648; so that his wages increased in the ratio of 1274 to
+     1566. (_Senior_, Outlines.)]
+
+
+SECTION CLXVI.
+
+WAGES.--PRICE OF COMMON LABOR.
+
+In the case of a commodity as universally desired as human labor is, the
+idea of the purchasers' capacity to pay (solvability) must be nearly
+commensurate with the national income, or to speak more correctly, with
+the world's income.[166-1] In regard to the different kinds of labor,
+and especially to common labor, it is evident that the different kinds
+of consumption require very different quantities of them. Here,
+therefore, we depend on the direction which national consumption takes,
+and this in turn is most intimately related to the distribution of the
+national income.[166-2] If all workmen were employed in nothing but the
+production of articles consumed by workmen, the rate of wages would be
+determined almost exclusively by the ratio between the number of the
+working population and the amount of the national income. But, if this
+were the case, landowners and capitalists would be obliged to live just
+as workmen do, and their highest luxury would have to consist in feeding
+idlers. (� 226). The effect must be much the same, when the wealthy are
+exceedingly frugal and employ their savings as rapidly as possible in
+the employment of common home labor; while, on the other hand, the
+exportation of wheat, wood, and other articles, which the working
+classes consume, in exchange for diamonds, lace, champagne, diminishes
+the efficient demand for common labor in a country.[166-3]
+
+The assumption frequently made, that the demand for labor depends on the
+size of the national capital, is far from exact.[166-4] Thus, for
+instance, every transformation of circulating into fixed capital,
+especially when the labor used in effecting this transformation is
+ended, diminishes the demand for other labor. That principle is not
+unconditionally true, even in the case of circulating capital. Thus, for
+instance, the rate of wages is wont to be raised by the transfer of
+capital from such businesses as require little labor into such as
+require much.[166-5] Only that part of circulating capital can have any
+weight here which is intended, directly or indirectly, for the purchase
+of labor and for the purchase of each kind of labor in particular.[166-6]
+The capital of the employer is, by no means, the real source[166-7] of the
+wages of even the workmen employed by him, It is only the immediate
+reservoir through which wages are paid out, until the purchasers of the
+commodities produced by that labor make good the advance, and thereby
+encourage the undertaker to purchase additional labor. Correlated to this
+is the fact, that other circumstances being the same, those workmen usually
+receive the highest wages who have to do most immediately with the
+consumer.[166-8]
+
+     [Footnote 166-1: _Senior_ denies this. Let us suppose that
+     agriculture in Ireland employs on every 200 acres ten
+     working men's families, one-half of whom are used to satisfy
+     the aggregate wants of the working people, and the other
+     half in the production of wheat to be exported to England.
+     If now the English market requires meat and wool instead of
+     wheat, the Irish landowner will, perhaps, find it
+     advantageous, of the ten laboring families, to employ one in
+     stock raising, a second in obtaining food, etc. to support
+     the laborers, and to discharge all the others. If, then, the
+     increased net product is employed in the purchase of other
+     Irish labor, all goes on well enough; but if, instead of
+     this, the landowners should import articles of English
+     manufacture, the demand for labor in Ireland would doubtless
+     decrease, notwithstanding the increase of its income.
+     (Outlines, I, 154.) _Senior_ here overlooks two things:
+     first, that in the supposed case, if eight-ninths of Irish
+     laborers are thrown out of employment, spite of the
+     increased income of the owners of landed estates, Ireland's
+     national income is on the whole probably diminished (� 146),
+     and secondly, that, possibly, the demand for labor in
+     England experiences a greater increase than the decrease in
+     Ireland; since, with the addition to the world-income, there
+     would be an increase in the world-demand for labor.]
+
+     [Footnote 166-2: Compare _Hermann_, Staatswirthsch.
+     Untersuch., 280 ff. Earlier yet, _Malthus_, Principle of
+     Population, II, ch. 13.]
+
+     [Footnote 166-3: Thus, _Thomas More_, Utopia, 96, 197,
+     thinks that if every one was industrious and engaged in only
+     really useful business, no one would need to fatigue himself
+     very much; while, as it is now, the few real laborers there
+     are wear themselves out in the service of the vanity of the
+     rich, are poorly fed and worked exceedingly hard.]
+
+     [Footnote 166-4: _McCulloch_, Principles, 104, seq. 2d ed.]
+
+     [Footnote 166-5: Thus, in France, during the continental
+     blockade, distant ocean commerce declined, and manufactures
+     flourished instead. (_Lotz_, Revision, III, 134.)]
+
+     [Footnote 166-6: Thus, _Adam Smith_ divides "the funds
+     destined for the payment of wages" into two kinds: the
+     excess of employers' income over their own maintenance, and
+     the excess of their capital over the demands of their own
+     use of it. (Wealth of Nat, I, ch. 8.) _Senior_ considers it
+     a self-evident principle, that the rate of wages depends on
+     the size of the "fund for the maintenance of laborers
+     compared with the number of laborers to be maintained."
+     (Three Lectures on the Rate of Wages, 1830, Outlines, 153,
+     ff.) But what determines the quota of the aggregate national
+     wealth and national income that is to constitute this fund?
+     _Carey_, Rate of Wages, 1835, has a very exhaustive
+     commentary on _Senior_.]
+
+     [Footnote 166-7: _Watts_, Statist. Journal, 1861, 500,
+     asserts altogether too generally that an "increase of profit
+     increases the future wages-fund, and consequently the demand
+     for laborers;" and that therefore every new machine useful
+     in manufactures must also be of use to the laboring class.
+     The employer engaged in any enterprise who has grown richer,
+     _can_ pay more wages, but whether he _will_ do it depends on
+     other causes, and even his ability to do it, in the long
+     run, on his customers. When _John Stuart Mill_, Principles,
+     I, ch. 5, 9, says that only the capital which comes into the
+     hands of labor before the completion of their work
+     contributes to their support, it is as if he were to explain
+     the phenomena of prices by demand and supply, and nothing
+     else, denying the influence of the cost of production, of
+     value in use, and of the deeper determining causes upon
+     them. (_Supra_, � 107, note 1.) Compare _Roesler_, Z. Kritik
+     der Lehre vom Arbeitslohn, 1861, 104 ff. In England, the
+     superstition which to a great extent attached to the idea
+     "wages-fund," was first questioned by _F. Longe_, Refutation
+     of the Wages-Fund Theory of modern Political Economy, 1866.
+     See also _Thornton_, On Labour, II, ch. 1. Even _John Stuart
+     Mill_ dropped his earlier erroneous views on this subject.
+     (Fortnightly Review, May and June, 1869.) Not, however,
+     without exaggeration, as is proved by his well-known saying,
+     that laborers needed capital but no capitalists. Still, even
+     here, he tenaciously holds that a rise in wages which
+     increases the price of some classes of commodities, must
+     decrease the aggregate demand for commodities. But better
+     paid workmen may now increase their demand for commodities
+     to the same extent that the purchasers of labor who do not
+     gain as much as before, or the consumers of the goods whose
+     price has been enhanced diminish theirs. (_Brentano_, in
+     Hildebrand's Jahrbb., 1871, 374.) Only, this increase need
+     not affect the very commodities influenced by the decrease.]
+
+     [Footnote 166-8: Thus, the person who builds his own house
+     is wont to pay his workmen better than a contractor or
+     builder by profession; and the maker of the entire
+     manufactured article, as a rule, suffers less frequently
+     than the maker of only half of it. (_Hermann_, Staatsw.
+     Unters., II, Aufl., 471.)]
+
+
+SECTION CLXVII.
+
+DIFFERENCE OF WAGES IN DIFFERENT BRANCHES OF LABOR.
+
+All the causes which make wages higher in some branches of labor; than
+in others, may be divided into three great categories.[167-1]
+
+A. Rare personal acquirements. The supply of labor requiring rare
+personal ability will always be limited.[167-2] Such labor must,
+naturally, have great value in use, when a small supply of it is met by
+a great demand.[167-3] It sometimes happens that a species of labor can
+be utilized only by a small circle of persons who demand it. But the
+wages for it is raised very high by the great solvability of those who
+do demand it. How frequently it happens, for instance, that a minister
+is paid a very high salary for the ability he possesses of making
+complicated and dry affairs of state attractive to the personal taste of
+his sovereign.[167-4] Here, particularly, the confidence which the
+workman inspires by his skill and fidelity enters as an element. Without
+this confidence, there are many kinds of business which would be crushed
+out entirely by the control it would be necessary to subject them to,
+and others would not be possible at all.[167-5] When, for instance, in a
+large manufacturing establishment, understrappers, workmen, foremen,
+subordinate superintendents, directors, etc., draw different salaries,
+their pay, if equitably graduated, should be in harmony with the
+principles laid down in � 148, The head of a manufacturing
+establishment, for instance, who has organized a more perfect division
+and co�peration of labor, himself, and by means of which ten men are
+enabled to perform the work before performed by twenty, may equitably
+retain, as the reward of his organizing power, a considerable amount of
+what was previously paid out in wages. Louis Blanc's proposition, that
+all should receive equal salaries is, as Bastiat remarks, equivalent to
+the assertion that a yard of cloth manufactured by a lazy or unskillful
+workman is worth as much as two yards manufactured by an industrious and
+skillful one.[167-6]
+
+Such qualified labor, as is treated of here, may be most accurately
+estimated, the quality of which supposes a certain cost of acquisition.
+This cost may be considered as the outlay of so much capital, which,
+with interest,[167-7] should come back to the workman in his wages.
+Otherwise, others would be deterred from entering the same business by
+the example of his loss. Here, especially, it is necessary to take into
+account the long period of apprenticeship or tuition, and the large fees
+paid for the same; and this, whether they depend on the natural
+difficulties in the way of acquirement or on artificial obstacles
+opposed to freedom of competition.[167-8] The influence of these
+circumstances is particularly great in those kinds of labor which
+require a "liberal" education.[167-9] Among the costs of production
+proper, peculiar to this labor-force, must be included, also, the
+necessary support of the workman, during the interval between the
+completion of his studies and the beginning of his full reward.[167-10]
+
+When a species of work requires special current expenses to be made in
+order to its proper performance, these also should of course be made
+good to the workman in his wages. Most intellectual labor, for instance,
+requires quiet surroundings. The brain-worker cannot share his study
+with his family, and, therefore should receive wages or remuneration
+large enough in amount to enable him to arrange his dwelling
+accordingly. A similar circumstance, only in a much higher degree,
+enhances the price paid for diplomatic service.
+
+     [Footnote 167-1: Excellent germs thereof in _Adam Smith_,
+     Wealth of Nat., I, ch. 10, 1. Earlier yet, in _Galiani_,
+     Della Moneta, I, 2. _Cantillon_, Nature du Commerce, 24 ff.]
+
+     [Footnote 167-2: Even in the case of mere manual labor, for
+     instance, a skillful packer of goods is paid higher wages
+     than a mere day laborer; a sower better than a plowman or a
+     digger; a vintner, in general, better than an agricultural
+     laborer: in the Palatinate of the Rhine, in the ratio of
+     36:24. Thus, almost anyone can paint a door or a house,
+     while an artist possesses a species of natural monopoly.]
+
+     [Footnote 167-3: Thus, the Greek juggler, who understood how
+     to throw lintels from a certain distance through the eye of
+     a needle, was very appropriately rewarded by his king with a
+     bushel of lintels. On the other hand, the high fee paid for
+     an operation for cataract depends both on the great
+     importance of the eye which cannot be replaced in any way,
+     and on the rarity of the courage among doctors to pierce the
+     eye of a living man. Very remarkable achievements, which it
+     requires great education to understand, are generally paid
+     for at a very low rate. (_Stein_, Lehrbuch, 123.)]
+
+     [Footnote 167-4: I need only recall _Richelieu_ and
+     _Mazarin_, the last of whom left an estate worth 200,000,000
+     livres. (_Voltaire_, Si�cle de Louis XIV., ch. 6.) In
+     Parisian industries, few workmen are as well paid as those
+     who are skilled in rapidly effecting changes of form. The
+     so-called _premi�res de modes_ frequently received more than
+     1,800 francs a year, while the _appr�teuses_ received only
+     from 15 to 20 sous a day. (Revue des deux Mondes, Sept. 15,
+     1850.) There are women there paid very well for making
+     pin-cushions, pen-wipers, etc., each one of a different
+     form; but as soon as any one form ceases to be a novelty,
+     the wages paid for making it sinks to a minimum. (_M. Mohl_,
+     Gewerbswissenschaftliche Reise durch Frankreich, 87.)]
+
+     [Footnote 167-5: Jewelers, lawyers, statesmen, generals.
+     _Senior_ says that of the income of �4,000 which a lawyer or
+     a doctor draws, only �40 are wages for his labor; �3,000 are
+     a rent paid for the possession of extraordinary talent, or
+     for his good luck, and �960 as the interest on his
+     intellectual capital, which is also the chief element of
+     wealth. (Outline, 134.)]
+
+     [Footnote 167-6: On the sad experience of the tailors'
+     association founded by Louis Blanc himself, at Clichy, and
+     in consequence of which they soon gave up paying equal wages
+     and returned to piece wages, see Journal des Economistes,
+     Mars, 1850, 349.]
+
+     [Footnote 167-7: As the interest on land improvements
+     assumes the character of rent, so also does that of the
+     education of labor the character of wages. The rate of
+     interest usual in a country, and the average duration of the
+     life of the workman affect the capital thus invested as a
+     species of annuity.]
+
+     [Footnote 167-8: Wages in the country are generally lower
+     than in the cities. In the electorate of Hesse, for
+     instance, on the supposition of steady employment, males, in
+     the country, received 69 thalers, 23 silver groschens a
+     year; females, 55 thalers, 9 silver groschens; in the
+     cities, on the other hand, males, 88 thalers, 23 silver
+     groschens, and females 61 thalers, 28 silver groschens.
+     (_Hildebrand_, statistische Mittheilungen, 101, 137.) And
+     so, according to _Colquhoun_, Treatise on Indigence, 1806,
+     the English agricultural laborers received, on an average,
+     �31 per annum, and manufacturing workmen, �55. The reason of
+     this is, besides the greater facility of learning how to
+     perform agricultural labor, the greater dearness of living
+     in cities, and in England also, because industry has
+     developed much more rapidly than agriculture.]
+
+     [Footnote 167-9: The cost of bringing up a common laborer,
+     in England, according to _Senior_, is �40; a gentleman,
+     �2,040. (Outlines, 205.) The more expensive an education
+     which one acquires for its own sake and without any special
+     object beyond this in view, is, the less can the capital
+     laid out in it affect wages. (_von Mangoldt_, V. W. L.,
+     382.)]
+
+     [Footnote 167-10: If the salaries of clergymen are, on an
+     average, lower than the income of a lawyer or a doctor, it
+     is partly because theological candidates are provided for
+     much earlier, and partly because of the lesser cost
+     attending the study of theology. Thus, at the end of the
+     eighteenth century, there were 350 students at the
+     University of Tubingen who are maintained gratis, on
+     foundation-money, and who had previously attended monastery
+     schools, free of charge. (_Nicolai_, Reisebescreibungen, XI,
+     73.) The remarkable contrast between the high wages of the
+     Athenian sophists and the low wages of modern abb�s, Adam
+     Smith accounts for principally by the many scholarships of
+     modern times. In Saxony, in 1850 etc., the outlay by the
+     state and of foundation-funds for the education of a student
+     amounted to an average of nearly 140 thalers. (_Engel._)]
+
+
+SECTION CLXVIII.
+
+DIFFERENCE OF WAGES IN DIFFERENT BRANCHES OF LABOR. (CONTINUED.)
+
+B. The great economic risk of the work. When a branch of labor necessary
+to a country is, notwithstanding, attended by many chances of failure to
+the individual who devotes himself to it, a sufficient supply of the
+labor can be relied on only in case that the danger attending it is
+compensated for by a corresponding premium paid to success.[168-1] The
+choice of a profession or avocation, Adam Smith has compared to a
+lottery, in which the fortunate winners gain only what the unfortunate
+have lost. The greater the prizes, the greater also the number of
+blanks.[168-2] However, the surplus wages in risky kinds of labor are
+not sufficient to constitute a full insurance premium. This is connected
+with the vanity of men who, as a rule, over-estimate not only their
+talent but their good fortune,[168-3] and especially in youth, when they
+decide on the choice of a profession, etc. According to this, wages must
+be specially low where even complete failure does not endanger the
+living or the social position of the workman. Partly on this account are
+the industries carried on by women so poorly remunerated;[168-4] as also
+such work as is done by a large class of people to fill up their leisure
+hours.[168-5]
+
+The prospect of frequent interruptions in any kind of labor must have
+the same effect on the wages paid for it as its economic or business
+risk.[168-6] Thus, for instance, a mason or roofer must earn at least
+enough, during the days he can work, to enable him to live during the
+time he is prevented working by bad weather. Hence, the highness of his
+wages may, in some respects, be called an apparent one.[168-7] Wages
+paid by the week more generally tend to equality than wages paid by the
+day, and more so yet wages paid by the year, for then winter and summer
+compensate the one for the other. When the workman must be ever ready to
+perform his task, account must be taken not only of the number of hours
+he is engaged, but also of fractions of his waiting hours, which must be
+paid for likewise.[168-8] Two half days cost almost everywhere more than
+one whole one.
+
+The number of holidays plays a very important part here. In Protestant
+countries, the workman must, in about three hundred work days, earn
+enough to live on for about sixty holidays as well. In Catholic
+countries, before the time of Clement XIV., he had to earn enough in
+addition to support himself for about one hundred and fifty holidays, on
+ninety of which he performed no work whatever.[168-9] So large a number
+of holidays produces a higher rate of wages or necessitates a low
+standard of life among the working classes.[168-10] Something similar is
+true of evening leisure and rest;[168-11] _i. e._, of the time when
+labor ceases.
+
+     [Footnote 168-1: The greater the preparatory cost of labor
+     is, the more difficult it is for workmen to go from one kind
+     of labor to another; but, at the same time, the more certain
+     it is that, without the inducement of a premium paid, there
+     will be no after increase or recruiting of labor-force.]
+
+     [Footnote 168-2: Thus, for instance, in the country, where
+     doctors generally get along well enough, the most skillful
+     never obtains any very distinguished position. But, in large
+     cities, on the other hand, there is the greatest difference
+     between first-class physicians and obscure practitioners.
+     Great generals usually obtain a larger income and greater
+     influence than great admirals; and so it is that prizes in
+     the military lottery are greater, and there are therefore
+     more blanks than in the naval lottery. The common soldier is
+     almost everywhere worse paid than the common sailor. (_Adam
+     Smith._) To some extent, this depends on the prison-like
+     life of the seaman in times of service, and in the absence
+     of an attractive uniform. As to the extent that the lottery
+     comparison is defective, see _Macleod_, Elements, 215.]
+
+     [Footnote 168-3: Who, otherwise, would have anything to do
+     with a lottery in which the mass of players were certain to
+     lose, and the keeper of it to gain? And this accounts for
+     the fact well known to all financiers, that the amount of
+     the budget remaining the same, a greater eagerness to enter
+     the military service of the country is inspired by endowing
+     the higher positions munificently--provided they are
+     attainable by all--and paying the lower ones in a very
+     niggardly way, than when the pay is made more uniform.
+     Something similar is to be observed in the ecclesiastical
+     service of the Roman and Protestant churches, inasmuch as
+     the former, considered from an economic point of view,
+     offers more magnificent prizes, but also more blanks, while
+     the latter divides its emoluments more equally.]
+
+     [Footnote 168-4: As most seamstresses are, when the worst
+     comes to the worst, supported by their parents, connections
+     by marriage, brothers, etc., the condition of those who have
+     to live by their needle must be a pretty hard one. Who is
+     not familiar with the refrain to _Hood's_ celebrated song of
+     the shirt: "Oh God, that bread should be so dear, and flesh
+     and blood so cheap!" There is a "distressed needlewoman's
+     society" in London. They undoubtedly suffer from an
+     overcrowding of their avocation, yet their chief desire is
+     that the competition of all who do not live exclusively by
+     the labor of their hands should be prohibited; for instance,
+     that of seamstresses who are paid for their work outside of
+     factories. (Edinb. Rev., 1851, 24.) In Paris, in 1845, the
+     yearly earnings of women workers averaged 375 francs, their
+     yearly wants 500 francs. (Journal des Economistes, X, 250.)
+     This does not apply to female servants whose wages,
+     especially in highly cultured localities as the vicinity of
+     large cities (Holstein, Brandenburg), is very high. In
+     England, the wages of female domestics is frequently higher
+     than in the United States; and hence nearly two-thirds of
+     all English girls between fifteen and twenty-five years of
+     age serve as maids. _Browning_, Political and Domestic
+     Condition of Great Britain, 413; _Carey_, Rate of Wages, 92.
+     A remarkable indication that women thrive only in the
+     family. (Compare � 250.)]
+
+     [Footnote 168-5: Thus, the darning of stockings in the sandy
+     parts of North Germany, in the Highlands of Scotland, in the
+     Faroe Islands, and formerly, even in the ante-rooms of the
+     Russian nobility. (_Schl�zer_, Anfangsgr�nde der
+     Staatswirthsch, I, 126.) Flax spinning and linen weaving in
+     Westphalia and Ireland, and wool weaving in the East Indies.
+     Manufacturing industries must be in a very highly developed
+     condition, and machinery carried to a high degree of
+     perfection to compete in price with these accessory
+     industries. Cheapness of many products manufactured in
+     convents and monasteries.]
+
+     [Footnote 168-6: Among these interruptions, may also be
+     reckoned the prospect the laborer has of being early
+     incapacitated for work, and thus of seeing himself cut off
+     from every other source of support. This is one of the
+     principal reasons why opera singers are generally better
+     paid than actors.]
+
+     [Footnote 168-7: In Leipzig, in 1863, mason and carpenter
+     journeymen earned during the summer, from twenty silver
+     groschens to one thaler, ordinary garden workmen, 20 silver
+     groschens, while shoemaker journeymen did not make much more
+     than 3-1/2 thalers a week, and manual laborers, only from 10
+     to 15 silver groschens a day. The masons of Paris have the
+     reputation of being the best patrons of the savings banks,
+     and, on that account, are more exposed to being attacked by
+     thieves than any other class. (_Fr�gier_, Des Classes
+     dangereuses, II, 3, 1.) High wages paid for threshing in
+     East Prussia, because, the workman during the winter can be
+     employed in very few different kinds of labor, and therefore
+     must earn his entire support by threshing. In Paris, of
+     101,000 persons engaged in industry in 1860, 6,400 had to
+     calculate on no interruption of their work, the remaining
+     number, however, lost with a certain degree of regularity,
+     from 2 to 4 months a year. (Revue des deux Mondes, 15 F�v.,
+     1865.) If the interruption can be so accurately estimated in
+     advance that the workman may engage in some business for
+     himself during the interval, as for instance when the
+     workmen in the Bavarian breweries work during the summer as
+     masons, its influence on wages decreases. (_Storch_,
+     Handbuch, I, 192.) As to how, in Switzerland, since 1850,
+     the guaranty of full employment to masons in winter is
+     considered as an addition to the wages of summer, see
+     _B�hmert_, Arbeiterverh�ltnisse, I, 141.]
+
+     [Footnote 168-8: _Commissionaires_, hack-drivers,
+     _Extraposthalter_ in Germany, porters, nurses, guides,
+     servants in watering places and countries visited by
+     tourists. A London porter gets at least a shilling an hour.
+     If employed by the day, he of course gets smaller wages.
+     Image venders, who travel from house to house, sell their
+     wares much lower at their own houses. The person who calls
+     them in from the street is obliged to pay them not only for
+     this one journey, but for several others which yielded them
+     no profit.]
+
+     [Footnote 168-9: If we call the minimum daily need or the
+     absolute requirement of the workman = m, the rate of daily
+     wages in the former case must amount to at least m + m/6; in
+     the latter, on the other hand, to m + m/4. A Bavarian
+     holiday estimated at a _minus_ of much more than 1,000,000
+     florins. (_Hermann_, II, Anfl., 192.)]
+
+     [Footnote 168-10: _Von Sonnenfels_, Polit. Abhandlungen,
+     1777, 332 ff.]
+
+     [Footnote 168-11: In a part of Lower Bavaria, in which there
+     were 204 holidays in a year, among them the anniversaries of
+     the consecration of 40 churches in the country about, and a
+     feast day following each such anniversary, as well as
+     target-shooting festivals, the celebration begins at 4
+     o'clock P. M. of the preceding day. (_Rau_, Lehrbuch, I, �
+     193.)]
+
+
+SECTION CLXIX.
+
+THE DISAGREEABLENESS OF CERTAIN CLASSES OF LABOR.--ITS EFFECT ON WAGES.
+
+C. Lastly, the personal disagreeableness of the work, which must be
+compensated for by higher wages. The uncleanness of a coal-worker's
+task, that of the chimney-sweep, and the repulsive labor of the butcher,
+demand high compensation, while other branches of business, themselves
+productive of pleasure, and therefore engaged in by many for pleasure's
+sake only, yield relatively little to those who engage in them as a
+regular industry.[169-1]
+
+To this category belong the kinds of labor which require extraordinary
+effort,[169-2] or which put life or health in unusual jeopardy.[169-3]
+But, indeed, when the danger attending any kind of work is made glorious
+by the romantic light of honor, or by still higher motives, it ceases to
+have any influence on wages.[169-4] On the other hand, the
+disreputableness of a business in itself raises wages;[169-5] whereas,
+scholars, poets, etc., leaving the charm inherent in their occupations
+out of account, are for the most part remunerated only by the honor paid
+them, and, not unfrequently, only by fame after they have gone
+hence.[169-6] And yet their talents are so rare, the preparation so
+laborious, the economic risk so great! Nor is there for the really
+creative workman any such thing as evening rest. (_Riehl._) Common
+intellectual labor is worse paid in our days than it was, comparatively
+speaking, a generation ago; because the increased average education
+makes it less burthensome to most people, and even seem positively
+agreeable to many. It would, indeed, be a dangerous retrogressive step
+towards barbarism, if it should come to such a pass, that labor
+preponderantly intellectual should be permanently more poorly
+remunerated than mere muscular labor.[169-7] [169-8]
+
+     [Footnote 169-1: Thus the chase, fishing in rivers (compare
+     _Theocrit._, Idyll., 21), gardening, fine female manual
+     labor, and literature.]
+
+     [Footnote 169-2: The high wages paid to mowers and threshers
+     may be accounted for on this ground (� 160). In countries
+     that have a strong heavy soil, wages are frequently 20 per
+     cent. higher than under circumstances otherwise similar
+     where it is sandy or light. In Mexico, a digger gets about
+     twice the wages of an agricultural laborer. (_Senior_, On
+     the Value of Money, 56.)]
+
+     [Footnote 169-3: Almost every trade predisposes to some
+     special disease. Compare _Halfort_, Enstehung, Verlauf und
+     Behandlung der Krankheiten der K�nstler und
+     Gewerbetreibenden, 1845. _Livy_, Trait� d'Hygi�ne publique
+     et priv�e, 1850, II, 755. It has been noticed, in Sheffield,
+     that thoughtless steel polishers look unfavorably on certain
+     new inventions intended to protect workmen against inhaling
+     small particles of stone and iron dust. They dread that if
+     these inventions come into general use, their wages would be
+     lowered in consequence; and prefer a short and merry life to
+     one longer and more quiet.
+
+     In places in which nearly all kinds of work are dangerous,
+     the danger cannot of course relatively raise the wages of
+     anyone. Thus, in the Thuringian forest, the wages of the
+     haulers of wood are very low. (_Lotz_, Revision, III, 151.)]
+
+     [Footnote 169-4: Missionaries! Besides the extremely small
+     wages paid to common soldiers (in the German infantry only
+     36.5 thalers cash per annum, to which in Leipzig, for
+     instance, rations, etc., add about 34 thalers more) is an
+     outlay made by the government principally to effect a levy
+     of the tax of the compulsory labor that lies in
+     conscription. (_Knies._) In the volunteer system, the
+     difference between officers and men is wont to be much
+     smaller. Thus, _Gustav Wasa_ paid his German mercenaries as
+     follows: 6 marks a month to captains, five to lieutenants
+     and 4 to common soldiers. (_Geijer_, Schwed. Gesch., II, 125
+     seq.) Similarly in the case of the Greek hired troops.
+     (_B�ckh_, Staatshaushalt der Athener, I, 165 ff.) As to how
+     little at the outbreak of a war, soldier earnest money is
+     increased, and positions as officers most sought after, see
+     _Hermann_, II, Aufl., 479.]
+
+     [Footnote 169-5: Thus, for instance, the skinning or flaying
+     of dead animals is comparatively well paid, to which the
+     rarity of the application of the work of executioners
+     contributes. (_J. Moser_, Patr. Ph., I, No. 34.) The high
+     wages of actors, singers, dancers, and especially of the
+     female members of the stage, depends principally on the
+     contempt with which they were formerly looked upon;
+     excommunicated by the Catholic church, and a scarcely milder
+     sentence passed upon them by the Protestant, until about the
+     middle of the eighteenth century. (_Schleiermacher_,
+     Christliche Sitte, 681.) Compare even _J. J. Rousseau_,
+     Lettre sur les Spectacles � Mr. d'Alembert sur son Article
+     Gen�ve.]
+
+     [Footnote 169-6: _Schiller's_ "Theilung der Erde." _Blanqui_
+     says of the learned: "They are most frequently satisfied
+     with a citizen-crown, and think themselves remunerated when
+     justice has been done to their genius. Their magnanimity
+     impels them, to their own injury, to diffuse their knowledge
+     as rapidly as possible. Thus they are like the light of day
+     which no one pays for, but which all enjoy, without thanking
+     the giver as they ought." The reward of intellectual labor
+     is called an _honorarium_. (_Riehl_, Die Deutsche Arbeit,
+     1861, 232.) According to _J. B. Say_, Trait�, II, ch. 7, the
+     poor wages of savants depends on the fact that they take to
+     market, and all at once, a great quantity of what they
+     produce, which cannot even be used up.]
+
+     [Footnote 169-7: In Switzerland, journeymen are often better
+     paid than the clerks kept by the greater tradesmen.
+     (_B�hmert_, Arbeiterverh�ltnisse, II, 168.) In England,
+     also, since 1850, the wages for "unskilled labor" has risen,
+     relatively, most. (_Tooke_, Hist. of Prices, VI, 177.) It
+     would be a frightful peril to our whole civilization if
+     school teachers and subordinate officials should be turned
+     into enemies of the entire existing state of things by
+     want.]
+
+     [Footnote 169-8: The high wages paid to engineers on
+     railroads is accounted for by the wear, physical and mental,
+     their employment entails, and also by their unavoidable
+     expenses away from home; further, by the importance of the
+     interests confided to their trust. On the Leipzig-Dresden
+     Railway, locomotive engineers, for the most part previously
+     journeymen blacksmiths, earned 900 thalers a year.
+     Similarly, in the case of pilots. The high wages paid on
+     board ships engaged in the slave-trade arose from the
+     unhealthiness of the African coast, where formerly
+     one-sixteenth of the crew died yearly (Edinburg Rev., 480),
+     from the moral turpitude of the business, and from the
+     severe penalties under which it was afterwards prohibited.
+     On the other hand, the low wages paid to European mining
+     laborers is largely the consequence of the certainty of
+     being cared for in old age, of those so employed. Weavers'
+     wages are low because the facility of learning the trade
+     makes it possible for the business to be carried on at home;
+     and hence there is a comparatively great pressure to engage
+     in it. (_Baines_, History of the Cotton Manufacture, 485
+     ff.)
+
+     According to the first annual report of the poor law
+     commissioners (202), the weekly wages in Manchester of
+     hod-carriers was 12s.; of hand-weavers, 7-15s.; of diggers,
+     10-15s.,; of pack-carriers, 14-15s.; of shoemakers, 15-16s.;
+     of machine-weavers, 13-16-5/6s.; of white-washers, 18s.; of
+     tailors, 18s.; of dyers, 15-20s.; of plasterers, 19-21s.; of
+     masons, 18-22s.; of tinsmiths, 22-24s.; of carpenters, 24s.;
+     of spinners, 20-25s.; of machinists, 26-30s.; of iron
+     founders and power-loom tenders, 28-30s. In Belgium, the
+     average daily wages for male labor was 1.18 francs for
+     agricultural laborers; for those engaged in industry, 1.48
+     francs; in the manufacture of linen, 0.80 francs; of cotton,
+     1.55; of woolens, 1.62; of silk, 1.25; of stockings, 1.14;
+     of glass, 2.58; of coal, 1.33. All according to the
+     Statistique g�n�rale de la B. In Athens, in the time of
+     Aristophanes, a pack-carrier earned 4 oboli a day; a street
+     sweeper, 3; a stone cutter on the public works, 6; a
+     carpenter, 5; for roofing houses and taking down
+     scaffoldings, each man, 6. The architects who superintended
+     the building of the temple of Polias, on the other hand, got
+     only 6 oboli per day, and the contractor 5. (_B�ckh_, I, 165
+     ff.)
+
+     The Edictum Diocletiani of the year 301 after Christ
+     contains the following provisions in relation to wages,
+     besides "board:" shepherds, camel-drivers and muleteers, 20
+     denarii; agricultural laborers, water-carriers, scavengers,
+     25; bakers, masons, roofers, house-finishers and repairers
+     of the inside, lime burners, wheelwrights and common clay
+     moulders, 50; boatsmen, sailors, makers of marble or mosaic
+     floors, 60; wall painters, 70; clay moulders for statues,
+     75; artistic painters, 150. (ed. _Mommsen_, cap. 7.) In
+     slave countries, the price of different slaves is to be
+     judged, mainly, by the above rules. Concerning the Greeks,
+     see _B�ckh_, I, 95 ff. _St. John_, The Hellenes, III, 23 ff.
+     It is a characteristic fact that the Romans, after the
+     Syrian war, began to pay high prices for the hitherto much
+     despised kitchen slaves. (_Livy_, XXXIX, 6.) Remarkable
+     fixed prices for slaves by _Justinian_: Cod. VI, 43, 3; VII,
+     7, 1, 5. Thus, in the Lex Burgundionum, tit. 10, the
+     compensation for the murder of a common laborer is fixed at
+     30 solidi; of a carpenter, at 40; of a smith, at 50; of a
+     silversmith, at 100; of a goldsmith, at 150. Advanced
+     civilization is wont to raise the price of slaves who
+     perform work of a higher quality, just as it raises the
+     wages of labor of a higher quality.]
+
+
+SECTION CLXX.
+
+RATE OF WAGES.--INFLUENCE OF CUSTOM.
+
+Custom always exerts a great influence where there is question of
+choosing an avocation with the intention of devoting one's self to it
+entirely and exclusively. There is a public opinion which fixes the
+gradation of the different classes of labor and their appropriate
+reward, which is slow to change, and which both determines, and is
+determined by the relation of supply and demand. There is an equilibrium
+between the pleasantness of work and the rate of wages only in the case
+of such kinds of labor as are on the same social footing. It frequently
+happens, however, that the most repulsive work has to be performed by
+those who are forced to accept any pay and to be satisfied with
+it.[170-1] There are many branches of labor those engaged in which still
+form a kind of exclusive caste; and the pay of the higher branches is
+maintained at a high rate, especially by the fact that the members of
+the castes to which they belong are provident in their marriages. The
+lower classes are not in a condition to meet the preparation necessary
+to engage in such professions, even if they were certain of being
+afterwards reimbursed with interest for the outlay.[170-2] One of the
+chief causes of the lowness of wages paid to women is, that so few
+branches of labor are traditionally open to them, that the few that are,
+are intended to supply luxuries, and are, besides, for the most part,
+over-crowded. The distribution of the aggregate wages earned by any
+industry, among the higher and lower classes of workmen who co�perate in
+it, depends very largely on their social position relatively to one
+another.[170-3] [170-4] Here political forms and changes may exert the
+greatest influence.[170-5]
+
+Thus, the artificial increase of the wages of masters effected by the
+former guild-system was produced, to say the least, as much at the cost
+of the journeymen and apprentices as of the public. And if, on the other
+hand, it cannot be said that the most recent marked rise in wages, in so
+many countries, is merely the consequence of the extension of the
+parliamentary right of suffrage, certain it is that the two phenomena
+are very closely related, and that both are at once the effect and the
+cause of the intensified feeling of individuality and of the
+consciousness of constituting a class in the community of the lower
+strata of society.
+
+     [Footnote 170-1: At least where the supply of labor in
+     general surpasses the demand. Compare _J. S. Mill_,
+     Principles, II, ch. 14, 3d ed. The dangerous industries in
+     which lead, quicksilver, arsenic, etc. are manipulated or
+     employed, should be and can be better paid than they
+     actually are. In the Bavarian Palatinate, stone-cutters
+     rarely reach their 45th year; and yet their wages are very
+     low, because of the comparative over-population of the
+     country. (_Rau_, _Haussen's_ Archiv., N. T. X., 228.) But
+     the lowness of wages here is certainly and mainly caused by
+     the little thought the workmen themselves give to
+     considerations of health.]
+
+     [Footnote 170-2: The lower the rate of wages of any class
+     sinks, the more difficult it becomes for parents to devote
+     their children to another career.]
+
+     [Footnote 170-3: In Paris, 24,463 workmen with less than 3
+     francs daily; 157,216, with from 3 to 5; 10,393, with from 5
+     to 20 and even 3 to 5 francs. It is remarkable, however, how
+     uniform the average wages in the different trades is:
+     _v�tements_, 3.33 francs; _fils et tissus_, 3.42;
+     _boisellerie_, _vannerie_, 3.44; _gar�ons boulangers_,
+     _bouchers_ 3.50; _arts chimiques et c�ramiques_ 3.71;
+     _b�timents_, 3.81; _carosserie_, 3.86; _peaux et cuirs_,
+     3.87; _ameublement_, 3.90; _articles de Paris_, 3.94;
+     _m�taux communs,_ 3.98; _m�taux pr�cieux_, 4.17;
+     _imprimerie_, 4.18. (Journal des Economistes, Janv. 1853,
+     111.)]
+
+     [Footnote 170-4: How the Roman advocates were given to all
+     sorts of ostentation, and even borrowed costly rings in
+     order to raise their _honoraria_, see _Juvenal_, VII, 105,
+     ff.]
+
+     [Footnote 170-5: The salaries paid to the employees in the
+     office of the minister of finance in France and the United
+     States were as follows: to the porter, 1,500 and 3,734
+     francs; the lowest clerk, 1,000 to 1,800, and 5,420 francs;
+     to the head clerk, 3,200 to 3,600, and 8,672 francs; the
+     secretary general, 20,000 and 10,840 francs; to the
+     minister, 80,000 and 32,520 francs. (_Tocqueville_,
+     D�mocratie aux �tats-Unis, II, 74.) In the treasury
+     department, at Washington, of 158 employees, only 6 received
+     less than $1,000 salary, but only 2 over $2,000. (_M.
+     Chevalier_, Lettres sur l'Am�rique du Nord, II, 151, 456.)
+     Compare _B�sch_, Geldumlauf, IV, 34. In Russia, the wages of
+     the higher classes of laborers as compared with those paid
+     the commoner class is much higher than in Germany.
+     (_Kosegarten_, in _Haxthausen_, Studien, III, 583.) On the
+     other hand, in England, since 1850, the rate of wages for
+     unskilled labor has risen relatively more than any other.
+     (_Tooke_, Hist. of Prices, VI, 177.)]
+
+
+SECTION CLXXI.
+
+HISTORY OF THE WAGES OF COMMON LABOR.--IN THE LOWER STAGES OF
+CIVILIZATION.
+
+In very low stages of civilization, where there is scarcely any such
+thing as rent, and where capital is extremely rare, the wages of labor,
+notwithstanding its small amount absolutely speaking, must eat up the
+greatest part of the product.[171-1] With every further advance, the
+condition of the laboring class is modified, according as the natural
+decline in this relative amount of their wages is outweighed or
+counterbalanced, or neither outweighed nor counterbalanced, by the
+increase in the aggregate product; in other words, in the national
+income in general as compared with the number of workmen.
+
+     [Footnote 171-1: _Adam Smith_, Wealth of Nat., I, ch. 8.
+     Thus in the case of nations of hunters. The wages of free
+     laborers in Russia, at the beginning of this century, were
+     so high that mowers, in the vicinity of Moscow, received a
+     good half of the corn mowed by them, (_von Schl�zer_,
+     Aufangsgr�nde, I, 65.) As a rule, the natural relation of
+     the three branches of income is here postponed by the
+     intervention of slavery. (� 76, 155.) But, for instance,
+     since the negroes have been emancipated, in the southern
+     states of the American Union, it has become necessary to
+     promise them one-half of the cotton crop as wages, and for
+     the employer to run all the risk of a bad harvest. (_R.
+     Somers_, The Southern States since the War, 1871.) On the
+     wretched pay of domestic servants in the middle ages, see
+     _Grimm_, D. Rechtsalterth., 357.]
+
+
+SECTION CLXXII.
+
+HISTORY OF THE WAGES OF COMMON LABOR.--IN FLOURISHING TIMES.
+
+When, where a nation's economy[172-1] is growing and flourishing,
+capital increases more rapidly than population, there is a search for
+employment by capital still greater than the search for employment by
+labor. The consequence is, of course, a decline in the rate of interest,
+and a rise in the rate of the wages of labor, although the latter may be
+compelled to surrender a part of its increase to rent, which also rises.
+If simultaneously with these phenomena, there have been great advances
+made in national productive skill, especially in the cultivation of
+land; if, therefore, labor and the capital consumed have become more
+prolific, the condition of the laboring class is improved in a two-fold
+manner; the condition of capitalists needs, to say the least, grow no
+worse, and the increase of rent paid to landowners may be
+avoided.[172-2]
+
+This favorable development is most striking in the colonies of rich and
+highly civilized parent countries, where the labor, capital and social
+customs of an old and ripe civilization are found together with the
+overflowing natural forces inherent in a virgin soil, engaged in the
+work of economic production. Here the growth of national wealth is most
+rapid; and the rate of wages is here wont to be highest.[172-3] With the
+high rate of interest that obtains where capital is rapidly saved, and
+with the low price of land, it is not a matter of difficulty for good
+workmen to enter into the ranks of landowners and capitalists. In North
+America, and especially in the western part,[172-4] it is very
+frequently in the normal course of economic development for young people
+to begin to work on wages, then to work on their own account, and
+finally to become themselves employers of labor.
+
+     [Footnote 172-1: Compare _Hermann_, Staatswirths. Unters.,
+     241 ff.; _J. S. Mill_, Principles, ch. 3. As to how _Carey_
+     confounds the rise and fall of the productiveness of labor
+     with the rise and fall of wages, see _J. S. Mill's_ views in
+     _Lange_, 1866, 218 ff.]
+
+     [Footnote 172-2: In England, wages from 1400 to 1420,
+     estimated in produce, were much higher than from 1500 to
+     1533. (Statist. Journal, 1861, 544 ff.) Later, a quarter of
+     wheat was earned by day labor as follows: under Elizabeth,
+     in about 48 days; during the seventeenth century, in 43
+     days; between 1700 and 1766, in 32 days; between 1815 and
+     1848, in from 19 to at most 28-3/4 days. (_Hildebrand_, Nat.
+     Oek. der Gegenwart und Zukunft.) Since 1860, it has been
+     earned in about 14 days. About 1668, the wages paid to
+     English laborers and servants was one-third higher than
+     twenty years before. (_Sir J. Child_, Discourse on Trade, p.
+     43 of the French translation.) _D. Defoe_, Giving Alms no
+     Charity, 1704, draws a much more favorable picture of the
+     time next succeeding. _Adam Smith_, Wealth of Nat., I, ch.
+     8, shows how money-wages, in the eighteenth century, were
+     higher and the price of corn lower than in the seventeenth
+     century. Between 1737 and 1797, wages in most parts of
+     England, except in the immediate neighborhood of the great
+     cities, doubled. (_Eden_, I, 385.) In Scotland, about the
+     year 1817, the wages of married farm servants, expressed in
+     corn, were about 60 per cent. higher than in 1792.
+     (_Sinclair_, Grundgesetze des Ackerbaues, 105.)
+
+     _Boisguillebert_, Trait� des Grains, I, 2, estimates the
+     wages in France, for agricultural laborers, at least from 7
+     to 8 sous, of present money, and at twice that amount in
+     harvest time. In 1697, laborers in Paris received from 40 to
+     50 sous. (D�tail de la France, I, ch. 1, ch. 7.) _Vauban_
+     estimates wages in large cities at 22-1/2-45 sous; for
+     country manual laborers, at 18 sous; for agricultural
+     laborers, 12-13-1/5 sous. (Project d'une Dime royale, 89
+     Daire.) On the other hand, _Chaptal_, De l'Industrie, Fr. I,
+     245, 1819, speaks of an average wage--25 sous. _Dureau de la
+     Malle_, Economie polit. des Romains, I, 151, allows
+     agricultural laborers, in 80 departments of France, only
+     20-25 sous. According to _Moreau de Joann�s_, Journal des
+     Econ., Oct. 1850, the average wages of a French agricultural
+     family amounted per annum, in 1700, to 135 francs; in 1760,
+     to 126; in 1788, to 161; in 1813, to 400; in 1840, to 500
+     francs. While _A. Young_, Travels in France, 1787-89, speaks
+     of wages of 20 sous a day; _Peuchet_, Statist. �l�mentaire,
+     1805, 361, assumes it to be 30 sous, although the price of
+     corn was not much higher. Compare _Birkbeck_, Agricultural
+     Tour of France, 13, who is of opinion even, that French
+     laborers are better situated than the English (?). From 1830
+     to 1848, wages decreased about 30 per cent. (_L. Faucher_,
+     Revue des deux Mondes, Avril, 1848.) _Levasseur_, Histoire
+     des Classes ouvri�res en France, II, 1858.
+
+     General data for whole countries are obviously very
+     doubtful. In Germany, for instance, economically active
+     places have witnessed an undoubted elevation of the
+     condition of the laboring classes. Thus, in Hamburg and
+     Lower Saxony, about the end of the eighteenth century
+     (_B�sch_, Geldumlauf, II, 56 ff.); while in Thuringia, in
+     1556, a _s�mmer_ of rye was earned by 7 summer days' labor,
+     and in 1830 ff. by 8. (_Lotz_, Handbuch, I, 404.) In Hessen,
+     also, there has been but a very small increase in wages.
+     _(Hildebrand,_ Nat. Oek., I, 190.) According to _von der
+     Goltz_, L�ndliche Arbeiterfrage, 1872, 84 seq., wages in the
+     country during the last twenty or thirty years have
+     increased on an average, 50 per cent. at least; in Bavaria
+     about 100 per cent.; in the Rhine province, male wages,
+     about 100; female wages, from about 75 to 100 per cent. The
+     masterly investigations of the wages of typesetters in Jena
+     and Halle by _Strasburger_ in _Hildebrand's_ Jahrb., 1872, I
+     ff., show that from 1717 to 1848, there was scarcely any
+     change in them. A million m's was paid for in 1717-40 with
+     26.93 Prussian _sheffels_ of rye; 1804-47 with from 24.80 to
+     28.80. Since then, a remarkable rise; so that in 1871, up to
+     November, 76.26 was reached. The prices of food, dwellings,
+     fuel, clothing, such as is in demand by such laborers, rose
+     between 1850 and 1860, 16.7 per cent., and the wages for
+     1,000 m's in the same period of time rose about 14.3 and
+     43.7 per cent. In the industrious manufacturing vicinity of
+     Moscow, wages in 1815 were four times as high as in 1670,
+     while the means of subsistence rose relatively much less.
+     (_Storch_, I, 203.)]
+
+     [Footnote 172-3: In the United States, the wages of
+     carpenters and masons, about the end of the last century,
+     were $0.62 and $0.75; in 1835, of the former from $1.12 to
+     $1.25, and for the latter from $1.37 to $1.50. In 1848, the
+     general wage was $0.75. The price of corn, in the meantime,
+     did not rise, and the price of manufactured articles was
+     much smaller. (_Carey_, Rate of Wages, 26 seq.; Past,
+     Present and Future, 154.) In New York, as far back as 1790,
+     wages were much higher (_Ebeling_, Geschichte und
+     Erdbeschreibung von Nordamerika, II, 917); and between 40
+     and 50 years ago, a journeyman mason might earn over 700
+     thalers per annum. Agricultural laborers, in 1835, got $9 a
+     month and their board, valued at $65 for the whole year. In
+     the vicinity of large cities, both were higher. (_Carey_,
+     91.) The condition of the factory hands, in Lowell, is a
+     very good one. In 1839, more than 100 of them had over
+     $1,000 each in the savings banks, and pianos at their mess
+     places. (_Boz_, Notes on America, 1842.) Most of them could
+     save $1.50 a week. _Colton_, in his Public Economy (1849),
+     says that a workman would consider himself in a bad way if
+     he could not save half of his wages. Compare _Chevalier_,
+     Lettres sur l'Am�rique, II, 174, 122, 19; I, 221 ff.
+
+     Apprentices in the United States, in almost every instance,
+     begin to be paid wages as soon as their work begins to prove
+     useful. The work of half-grown children, who had not yet
+     left the parental roof, was so well paid that it was
+     estimated that a child earned for his parents, on the whole,
+     �100 more than he cost them. What an incentive to marriage!
+     (_Adam Smith_, Wealth of Nat., I, ch. 8.) In Canada,
+     agricultural laborers earn between �24 and �30 per annum and
+     their board. In and around Melbourne, agricultural laborers
+     got from 15 to 20 shillings a week and lodging; herdsmen,
+     �35 to �40 a year; girls, from �20 to �45 (Statist. Journal,
+     1872, 387 ff.); female cooks, from �35 to �40; male cooks,
+     from �52 to �156. In hotels, girls, from �30 to �35; female
+     cooks, from �50 to �100; domestic servants, �39 to �52;
+     carpenters, masons, etc., 10 shillings a day; the best
+     tailors, from 60 to 75 shillings a week; shoemakers, from 40
+     to 55 shillings; bakers, from 40 to 60 shillings a week.
+     (Statist. Journal, 1871, 396 seq.) In San Francisco, a short
+     time since, servant girls got $25 a month; Chinese, $1 a
+     day; common laborers, $2; skilled artisans, from $3 to $5.
+     (_Whymper_, Alaska, 299, 326.) The wages of a European
+     tradesman, in Rio Janeiro, was from I to 2 Spanish piasters
+     a day. (_Martius_, Reise, I, 131.) In the English West
+     Indies, a new-born negro was formerly worth �5. (_B.
+     Edwards_, History of the West Indies, II, 128.) The high
+     wages paid in young colonies are frequently made temporarily
+     still higher, by a large influx of capital in the shape of
+     money, brought by emigrants, and by government outlays.
+     Thus, in Van Diemen's land, for instance, in 1824,
+     carpenters, masons, etc. got 12 shillings a day; in 1830,
+     10; in 1838, only from 6 to 7, although between 1830 and
+     1838, the export trade of the island trebled while the
+     population scarcely doubled. (_Merivale_, On Colonies, II,
+     225.)]
+
+     [Footnote 172-4: As to how many workmen in the eastern part
+     of North America buy land in the west, and so threaten their
+     employers with immediate emigration, see _Brentano_,
+     Arbeitergilden, II, 131. However, in Massachusetts, women's
+     wages are in many instances so low that, considering the
+     dearness of the means of subsistence, it is almost
+     impossible to understand how they exist. (Statist. Journal,
+     1872, 236 ff.)]
+
+
+SECTION CLXXIII.
+
+HISTORY OF THE WAGES OF COMMON LABOR.--IN FLOURISHING NATIONS.
+
+A permanently[173-1] high rate of wages[173-2] is, both as cause and
+effect, very intimately connected with a flourishing condition of
+national life. It proves on the one hand, great productiveness of the
+public economy of the people generally: prudence, self-respect and
+self-control, even of the lowest classes, virtues, which, however, are
+found, on the whole, only where political liberty exists, and where the
+lowest classes are rightly valued by the higher.[173-3] On the other
+hand, it produces a condition of the great majority of that portion of
+the population who have to support themselves on the wages they receive,
+worthy of human beings, a condition in which they can educate their
+children, enjoy the present and provide for the future. Equality before
+the law and participation in the affairs of government are empty
+phrases, and even tend to inflame the passions, where the rate of wages
+is not high. When the lower classes are dissatisfied, in highly
+civilized countries, with the sensitiveness and mobility of the whole
+national life, there can be no certainty of the freedom of the middle
+classes or of the rule of the upper. Here, in other respects, also, the
+philanthropy of employers harmonizes remarkably well with their
+reasonable self-interest. According to � 40, only the well-paid workman
+can accomplish anything really good, just as, conversely, only the good
+workman is on the whole, and in the long run, well paid. This suggests
+the physiological law, that where muscular activity is great, nutrition
+must be great, likewise; and the rapid waste and repair of tissues
+strengthens the muscles and gives tone to the whole physical life. With
+a correct insight into the relations of things, antiquity described its
+greatest worker, Herakles, as a great eater also. A well-paid workman,
+who costs and accomplishes as much in a day as two bad ones, is cheaper
+than they. He works much more cheerfully and faithfully, is, hence, more
+easily superintended, is less frequently sick, and later
+decrepid.[173-4] His childhood costs less, and his burial is not so
+expensive. In cases of need, he can more easily bear the weight of
+taxation or a temporary lowering of wages.[173-5] We might say of the
+granting of holidays and of evening leisure something similar to what we
+have said of the rate of wages. They are indispensable requisites to the
+development of a desirable individuality in the working classes; and
+when used for that purpose are certainly no detriment to the product of
+labor or to employers.[173-6] [173-7]
+
+In consideration of all the blessings attending a high rate of wages, we
+may well be induced to put up with a certain and frequently inconvenient
+external defiance of the lower classes which is wont to accompany
+it.[173-8] It teaches the upper classes many a moral lesson, and is
+surely a lesser sin in the lower, than the cowardly, malicious crimes of
+the oppressed. When wages are so low that they have to be supplemented
+by begging or public charity, the effect on morality is the same as when
+government officials, who cannot live on their salaries, resort to
+bribery or embezzlement.[173-9] [173-10]
+
+     [Footnote 173-1: A merely momentary rise in wages might be
+     the result of a great calamity, destructive of human life,
+     and might seduce workmen not intellectually prepared for it
+     into idleness. Compare _von Taube_, Beschreib. von Slavonien
+     etc., II, � 4.]
+
+     [Footnote 173-2: On the necessity of _free_ wages, that is
+     of an excess over and above the costs of support and of
+     maintaining one's position, see _Roesler_, Grands�tze, 394.]
+
+     [Footnote 173-3: _Dans aucune histoire on ne rencontre un
+     seul trait, qui prouve que l'aisance du peuple par le
+     travail a nui � son ob�issance, (Forbonnais.)_ This is true
+     only of well governed countries. When, in England, about the
+     middle of the eighteenth century, a great improvement took
+     place in the condition of the laboring classes,
+     _Postlethwayt_ (Great Britain's commercial Interests, 1759)
+     was one of the first to recognize its general beneficial
+     character; also _Th. Mortimer_. (Elements of Commerce,
+     Politics and Finance, 1774, 82 ff.) _Benjamin Franklin_,
+     before the American revolution, was of opinion that high
+     wages made people lazy. (On the Price of Corn, 1776. On the
+     laboring Poor, 1768.) He afterwards, however, acknowledged
+     its generally good effect, and that even the products of
+     labor might be cheapened thereby. (On the Augmentation of
+     Wages, which will be occasioned in Europe by the American
+     Revolution. Works II, 435 ff.) See further, _Paoletti_, Veri
+     Mezzi di render felici le Societ�, ch. 15; _Ricardo_,
+     Principles, ch. 5; _Th. Brassey_, on Work and Wages, 1872.
+     _Umpfenbach_, Nat. Oek, 181, calls the costliness of labor to
+     the purchaser of labor, "givers' wages," their purchasing
+     power to the laborer himself, "receivers' wages," and is of
+     opinion, that as civilization advances, the former declines
+     and the latter rises.]
+
+     [Footnote 173-4: When in the department of the Tarn flesh
+     food was introduced among journeymen smiths instead of mere
+     vegetable diet, the sanitary improvement that followed was
+     so great that the number of days lost by sickness in a year
+     decreased from 15 to 3. (_Moleschott_.)]
+
+     [Footnote 173-5: In high stages of civilization, it is
+     always more profitable, the result being the same, to keep a
+     few well fed cattle than many poorly fed. (_Roscher_,
+     National�k. d. Ackerbaues, � 179.) _Infra_, � 231. When the
+     drainage of Oxford street in London was made while wages
+     were rising, it happened that the cubic foot of masonry work
+     at 10 shillings per day was cheaper than it was formerly at
+     6 shillings per day. (_Brassey_, 68 ff.) _Senior_ calls it
+     an absurdity to consider the high wages paid in England as
+     an obstacle in the way of its successful competition with
+     other countries. Rather would he consider it as the
+     necessary result of the excellence of English labor. Thus,
+     in his Lectures on the mercantile Theory of Wealth, p. 76,
+     he says that if the English employ a part of their labor
+     injudiciously, they must pay it not in proportion to what it
+     really accomplishes, but to what it might do if well
+     employed. If a man calls in a doctor to cut his hair, he
+     must pay him as a doctor. If he puts a man to throwing silk
+     who might earn 3 ounces of silver a week spinning cotton, he
+     must pay him weekly 3 ounces of silver, although he may
+     deliver no more silk within that time than an Italian who
+     gets only 1-1/2 ounces.]
+
+     [Footnote 173-6: Norfolk country workmen never worked more
+     than 10 hours a day except in harvest and seed time. But a
+     plowman there accomplished as much in 5 days as another in
+     8. (_Marshall_, Rural Economy of N., 138.) In southwestern
+     Germany, the country working day is from 2 to 4 hours
+     shorter than in the northeast, and yet just as much is
+     accomplished in the former quarter. (_von der Goltz_, L�ndl.
+     Arbeiterfrage, 88, 131.) Thus the coal diggers of South
+     Wales work 12 hours a day, those of Northumberland, 7; and
+     yet the same achievement is 25 per cent. dearer in case of
+     the former. In the construction of the Paris-Rouen Railroad,
+     the English achieved more than the French, although the
+     former worked from 6 A. M. to 5:30 P. M., and the latter
+     from 5 A. M. to 7 P. M. (_Brassey_, 144 ff.) Examples from
+     English manufactories in _Marx_, Kapital, I, 401 seq. In an
+     English factory the hours worked were 12, and afterwards,
+     11. This caused the number of attendants of the evening
+     school to grow from 27 to 98. (_Horner._) _Dollfuss_, in
+     M�hlhausen, reduced the number of hours worked from 12 to
+     11, and let the wages remain the same as before. The result
+     was besides a great saving made in fuel and light, a surplus
+     product of at least 1-2/3 per cent. Something similar
+     observed by _M. Chevalier_, Cours, I, 151.
+
+     Hence _J. M�ser_, Patr. Ph., III, 40, desired, on this
+     account, that work in the evening should be prohibited by
+     law. In England, not only the moral necessity, but also the
+     economic general utility of leisure time of workmen has been
+     defended, among others by _Postlethwayt_, Dictionary of
+     Trade and Commerce, I, prelim. Discourse, 1751. A beautiful
+     law, V Moses 24, 15. Only, care must be taken not to go to
+     the other extreme, which is still more detrimental to
+     personality. The North American ideal of 8 hours a day for
+     work, 8 for eating, sleeping, etc., and 8 for leisure, would
+     be injurious except to workmen intellectually very active.
+     But the provision to be met with in many states of the Union
+     and in the arsenal employ of the government, that in case of
+     doubt, the work day is to be tacitly assumed as of 8 hours,
+     has, it is said, correspondingly lowered wages. See _supra_,
+     � 168.]
+
+     [Footnote 173-7: In India, where the institution of caste is
+     found, nearly half the year is made up of feast days, while
+     in rationalistic China there is no Sunday and very few
+     general holidays. (_Klemm_, A. Kulturgeschicht. VI, 425.
+     _Wray_, The practical Sugar Planter, 1849.) The
+     Judaic-Christian sanctification of the seventh day is a
+     happy medium between these two extremes. Recuperation and
+     collectedness get their due without its costing too much to
+     action. _Ora et labora!_ Compare _Sismondi_, N. P. II, ch.
+     5. Which is best, traveling on foot, to drag along all the
+     time, or to walk decently and rest properly between times?
+     The rest of Sunday, even leaving the work of recuperation
+     and edification out of account, is necessary in the
+     interests of the family and of cleanliness. The French
+     _decadis_ accomplished materially even too little: _ils ont
+     � faire � deux ennemis, qui ne c�deront pas, la barbe et la
+     chemise blanche_. (_B. Constant._) Hence, an English prize
+     essay on the material advantages of Sunday found 1,045
+     competitors among English working men. (T�binger Zeitschr.,
+     1851, 363.)]
+
+     [Footnote 173-8: Thus _Parkinson_, A Tour in America,
+     complains that with four servants in the house, he was
+     obliged to polish his own shoes, and with his wife and
+     children to milk the cows, while his people were still
+     asleep. Strange servants bringing a message, come in with
+     their hats on. All domestics are called mister or misses.
+     Servant maids are called "helps," and their masters,
+     "employers." If a person at a hotel asks for a laundress, he
+     is answered: "Yes, man, I will get a lady to wash your
+     clothes." Similarly in _Fowler_, Lights and Shadows,...
+     three Years' Experience in Australia. But, at the same time,
+     it is remarkable how seldom a native born white American
+     accepts a fee. On the other hand, Russia is the classic land
+     of fees. There is a popular story in that country to the
+     effect that when God divided the earth among the different
+     nations, they were all satisfied except the Russians, who
+     begged a little drink-money or fee in addition, (_von
+     Haxthausen_, Studien, I, 70.) Similarly in Egypt. (_Ebers_,
+     Durch Gosen zum Sinai, 1873, 31 seq.) The system of feeing
+     servants holds a middle place between the modern system of
+     paying for everything lawfully and the medieval system in
+     which people either rob, donate or beg.]
+
+     [Footnote 173-9: Compare _Garve_ in _Macfarlan_, 90. The
+     wages of English wool workers in 1831 amounted to:
+
+                                 _Tax per capita of the_
+                                 _population for_
+        _In_                     _support of the poor._
+     Leeds,       22--22-1/2s.         5s. 7d.
+     Gloucester,  13--15-1/4s.         8s. 8d.
+     Somerset,    16-3/4--19-3/4s.     8s. 9d.
+     Wilts,       13-7/12--15-5/12s.  16s. 6d.
+
+     _Ure_, Philosophy of Manufactures, 476. After an
+     enthusiastic eulogy of high wages, _McCulloch_ remarks
+     especially that the English poor rates cost more than if the
+     laborers were obliged to provide for themselves by getting
+     higher wages. (Principles, III, 7.) Sad results of the
+     system which came into vogue in the South of England in
+     1795, to supplement wages according to the price of corn and
+     the number of children. Previously the laboring classes
+     married only after the age of 25 and even at 35, and not
+     until they had saved from �40 to �50. After the above
+     mentioned system was adopted, even minors married. (Edinburg
+     Review, LIII, 4, 7.)]
+
+     [Footnote 173-10: _Von Th�nen_, Isolirte Staat., II, 1, 154,
+     gives the following formula as the expression of ideal
+     wages: sqrt(ap), in which a = the necessary requirement for
+     maintenance of the workmen, and p = the aggregate product of
+     his labor. _von Th�nen_ attached so much importance to this
+     formula that he had it engraved on his tomb-stone. But even
+     if it were possible to reduce capital-generating labor and
+     wage-labor to a common denominator, it would not be possible
+     nor equitable to maintain the same dividing measure when
+     capital and labor contributed in very different amounts to
+     the production of the common product. An artist, for
+     instance, who could make costly vessels out of very cheap
+     clay and with cheap fuel would get too little by _von
+     Th�nen's_ law; a mechanic who used a very efficient and
+     costly machine, too much. The fundamental defect in his
+     theory, _von Th�nen_ himself seems to have obscurely felt.
+     Compare the letter in his Lebensbeschreibung, 1868, 239 and
+     _Roscher_, Geschichte der Nat. Oek., in Deutschland, 895 ff.]
+
+
+SECTION CLXXIV.
+
+HISTORY OF THE WAGES OF COMMON LABOR.--IN DECLINING COUNTRIES AND TIMES.
+
+When, circumstances being otherwise unaltered, the aggregate income of a
+nation decreases, the wages of labor are wont to be lower in proportion
+as the points above mentioned, and which are unfavorable to the laborer
+in his competition, appear.[174-1] The worse distribution, also, of the
+national resources, when, instead of a numerous middle class, a few
+over-rich people monopolize all that is to be possessed, diminishes the
+wages of common labor and thus again produces a worse distribution than
+before.[174-2] In a similar way, wages must decline when the mode of
+life of the laboring class, or the quality of their work, has
+deteriorated. Some of these causes may exist transitorily even among
+otherwise flourishing nations; as, for instance, in war times,[174-3] or
+when population for a while grows more rapidly than national wealth. But
+among nations universally declining, they are all wont to meet, and one
+strengthens the other.[174-4] One of the saddest symptoms of such a
+condition is the low value here put upon the life and strength of
+workmen. The cheapness of labor has indeed a charm for enterprising
+spirits, which induces them to employ human labor even where machinery,
+beasts, etc., would economically be better adapted to the performance of
+the work.[174-5] Day-laborers are, on this account, more profitable to
+persons of enterprise (_Unternehmer_=_undertaker_) because they can more
+easily rid themselves of them. But such egotistic calculation should
+have no place even in the case of actual slaves.[174-6]
+
+Besides, it not unfrequently happens, that the laboring class seek to
+oppose the decline of wages by increasing their industry, shortening
+their holidays and leisure, and by drawing their wives and children into
+their work. This may, under certain circumstances, result in an increase
+of the national income, and thus constitute a transition to the
+restoration of high wages, especially if beforehand there was reason to
+complain of the idleness of the working class. But if the other
+circumstances of competition are unfavorable to the working class, if
+especially they used their personally increased income to add to the
+population, it would not be long before they fell back to their previous
+state. In such case, the consequence is, that the same quantity of labor
+has become cheaper; that all permanent profit falls to the capitalists
+and landowners, and all that remains to the laboring class is only
+greater toil, a sadder home-life, and sadder children. The danger of
+such an issue is all the greater, because few things so much contribute
+to reckless marriages and the thoughtless procreation of children, as
+the industrial co�peration of wife and child.[174-7] [174-8]
+
+     [Footnote 174-1: Hence _Adam Smith_ says that it is not the
+     richest countries in which wages are highest, but those
+     which are becoming rich most rapidly.]
+
+     [Footnote 174-2: The classic lands of low wages and
+     pauperism are especially the East Indies and China. A
+     minister of Kienlong was punished after he had extorted
+     about 20,000,000 thalers. (_Barrow_, II, 149.) In the
+     confiscation of the well known _Keschen_, the authorities,
+     according to their own accounts, found 682 pounds of gold
+     and more than 6,000,000 pounds in silver. Considering the
+     colossal banquets of the rich, embracing several hundred
+     courses, of which _Meyen_, Reise um die Erde, II, 390,
+     describes an example, the wretched food of the poor is
+     doubly striking. Count _G�rtz_ relates that in Canton, rats
+     and serpents are regularly exposed for sale. (Reise, 445.)
+     The lowness of wages appears from the fact--one of
+     many--that servants frequently get nothing but their board.
+     (_Haussmann_, Voyage en Chine, etc.) In the cities,
+     tradesmen with their tools run hither and thither about the
+     streets begging for employment in the most imploring manner.
+     Thousands live all their lives on rafts. Numberless
+     instances of infanticide from want of food, (� 251.) The
+     influence of these circumstances on the morality of the
+     people is best illustrated by the fact that _Keschen_, when
+     he was ambassador to Thibet, preferred to confide his newly
+     collected treasures to the escort of the French missionaries
+     he persecuted rather than to the mandarins named by himself,
+     so much more highly did he estimate European than Chinese
+     honesty. (Edinburg Rev., 1851, 425 ff.) In the Chinese
+     picture-writing, the word happiness was designated by a
+     mouth well corked with rice. Chinese statisticians speak of
+     mouths (_Maul_) where ours treat of the number of heads or
+     souls. _Ritter_, Erdkunde, II, 1060. More favorable accounts
+     in _Plath_, M�nch. Akad., 1873, 784, 788 seq.
+
+     In the East Indies, a great many of the rejected castes live
+     on carrion, dead fish, noxious insects, and even the middle
+     class find wheat flour too dear, and therefore mix it with
+     peas, etc. (_Ritter_, VI, 1143.) It is said that Bengal, in
+     the famine of 1770, lost more than one-third of its
+     inhabitants. (_Mill_, History of British India, III, 432.)
+     Eloquent description of misery in _Rickard_, India, or Facts
+     submitted to illustrate the Character and Condition of the
+     native Inhabitants, II, London, 1832. An immense number of
+     badly paid servants of whom it may however be said that each
+     one accomplishes very little. The Pindaries may pass for an
+     extreme of Indian pauperism, corresponding to the
+     pirate-calamity during the later Roman Republic. (Quarterly
+     Review, XVIII, 466 ff.; _Ritter_, VI, 394 ff.)]
+
+     [Footnote 174-3: Thus, in England, during the last great
+     war, wages rose less than the price of corn, and sank less
+     after it. About 1810, wages were nearly 100 per cent. higher
+     than in 1767; but, on the other hand, the price of wheat,
+     115; of meat, 146; of butter, 130, and of cheese, 153 per
+     cent. (Edinburg Rev., XL., 28.) If it has some times been
+     observed that crime, communistic machinations and
+     revolutionary movements grow less frequent in times of war,
+     the fact is not to be ascribed necessarily to a better
+     condition of the laboring class. It might possibly be the
+     consequence of the strongest and wildest elements of the
+     laboring class finding some other career.]
+
+     [Footnote 174-4: _Adam Smith_, loc. cit., on this point
+     describes China as a stationary country (according to _R.
+     Fortune_, Wanderings in China, 1847, 9, a decided decline
+     has been noticeable there for a long time), and Bengal as a
+     declining one. On the condition of wages among the Romans,
+     _Juvenal_, III, 21 ff., is one of the principal sources.
+     Hence the desire to emigrate because honest labor had no
+     longer any foothold (23 ff.). Poor dwellings of the laboring
+     class, dark, exposed to danger from fire (166, 190 ff.,
+     225), and yet comparatively dear (223 seq.). Numerous crowds
+     of robbers and beggars (302 ff.; IV, 116 ff.; V, 8; XIV,
+     134). On beggary, see _Seneca_, Controv., V, 33. De
+     Element., II, 6. De Vita beata, 25 ff. _Martial_, V, 81,
+     XIV, 1, complains of the absence of outlook among the poorer
+     classes. _Horace_, too, is rich in passages which might be
+     appropriately cited in this connection. Characteristic
+     question of the nabobs, in _Petron._, 48, 5: What on earth
+     is that thing called a pauper?]
+
+     [Footnote 174-5: Thus, in China, the East Indies, etc.,
+     people travel in palanquins borne by men; in a multitude of
+     cases, Chinese commodities are carried in wheelbarrows; and
+     a great many roads are constructed, in reference not to
+     wagons, properly so-called, but to this species of vehicle.
+     How heartless the Chinese, who, before they save a drowning
+     man, first higgle about the reward, and take pleasure in
+     pestilence, famine, etc., because those who survive profit
+     by them. See _Finlaison_, Journey of the Mission to Siam,
+     1826, 62 ff.]
+
+     [Footnote 174-6: Hence _Menander_ (342-290 before Christ)
+     says it is better to be the slave of a good master than to
+     live wretched in freedom. (_Stoboeus_, Flor., 62, � 7.
+     _Meinecke_, Fr. com. Gr., IV, 274.) _Libanios_, too, (Tom.,
+     483, Reiske), in his "Blame of Poverty," represents slavery
+     as better cared for, and freer from worry. Horrible
+     contracts made even in C�sar's time, from want, by freemen,
+     to become gladiator-slaves. _Cicero_, pro Roscio, Am. 6;
+     _Horat._, Serm., II, 7, 58 ff.; _Petron._, 117; _Seneca_,
+     Epist., 37. And so by Justinian, cases of declined freedom
+     are supposed. (L. 15, _Justin._, Cod., VII, 2.) "_Dans une
+     arm�e on estime bien moins un pionnier, qu'un cheval de
+     caisson, parce que le cheval est fort cher, et qu'on a le
+     pionier pour rien. La suppression de l'esclavage a fait
+     passer ce calcul de la guerre dans la vie commune._"
+     (_Linguet._)]
+
+     [Footnote 174-7: _Sismondi_ is guilty, however, of a
+     philanthropic exaggeration when he says that the labor of
+     children is always fruitless to the laboring classes. (R. P.
+     I., 235.)]
+
+     [Footnote 174-8: The bringing into juxtaposition of the
+     rates of wages in different countries is doubtless one of
+     the most important objects of comparative statistics. Only
+     it is necessary not to confine it to the money amount of
+     wages, but to make it embrace the prices of the principal
+     means of subsistence. Thus, in France, before the outbreak
+     of the French Revolution, a French workman earned a cwt. of
+     bread on an average of 10.5 days; one of meat in 36.8; an
+     English workman, in 10.4 and 25.3 days. (_A. Young._) In the
+     interior of Russia, a female weaver earns, in a day, almost
+     one Prussian _scheffel_ of rye, in Bielefeld, only about
+     one-tenth of a _scheffel_; a table-cloth weaver, in the
+     former place, 18 silver groschens, while the _scheffel_
+     costs from 12 to 15 silver groschens. (_von Haxthausen_,
+     Studien, I, 119, 170.) According to _Humboldt_, the
+     money-wages paid in Mexico were twice as high, and the price
+     of corn two-thirds as dear, as in France. (N. Espagne, IV,
+     9.) According to _Rau_, Lehrbuch, I, � 180, the procuration
+     of the following means of subsistence required in day labor
+     in:
+
+          ==============+============+=========+==========
+                        |            |         |         |
+                        |_Manchester.|_Hanover.|_Hanover.|
+                        |            |         |         |
+                        |  1810-20_  |  1700_  |  1827_  |
+          --------------+------------+---------+----------
+          Cwt. beef,    |   26       |   33    |   35    |
+           "   potatoes,|    1.85    |   ----  |   ----  |
+           "   wheat,   |    5.5     |   ----  |   ----  |
+           "   rye,     |   ----     |    6.5  |    8.7  |
+           "   butter,  |   42.3     |   87    |   64    |
+           "   sugar,   |   96       |  181    |  128    |
+          ==============+============+=========+==========
+                        |_Upper  |             |         |
+                        |Canada. |_Brandenburg.| Gratz.  |
+                        |        |             |         |
+                        | 1830_  |  1820-33_   |1826-45_ |
+          --------------|--------+-------------+----------
+          Cwt. beef,    |  6.6   |     34      |  36     |
+           "   potatoes,| ----   |      1      |   2.68  |
+           "   wheat,   |  2     |      7.6    |  11     |
+           "   rye,     |  1.5   |      5.4    |   8.6   |
+           "   butter,  | 22     |     83      |  84     |
+           "   sugar,   | ----   |     ----    |  ----   |
+          ==============+============+=========+==========
+
+     Estimated in silver, the East Indian laborer earns from �1
+     to �2 a year; the English, �9 to �15; the North American,
+     �12 to �20. (_Senior._) _Hildebrand_, Nat-Oek., I, 195 ff.,
+     assures us that the average rate of wages in Germany, in
+     1848, amounted to 400 thalers a year; in England, to 300
+     thalers; and that the prices of the means of subsistence in
+     the latter country were 1-1/2 times higher than in the
+     former. _Engel_, Ueber die arbeitenden Klassen in England,
+     1845, shows only the dark side of a real picture, and is
+     silent on the other, and is well corrected by _Hildebrand_,
+     I, 170 ff. Excellent statistics in _Sir F. M. Eden_, State
+     of the Poor, I, 491-589. On the more recent times, compare
+     the Edinburgh Review, April, 1851, April, 1862; Quarterly
+     Rev., Oct., 1859, July, 1860. _Ludlow_ and _Jones_, loc.
+     cit. On the situation in France, see _Blanqui's_ report in
+     the M�moires de l'Acad�mie des Sciences morales et
+     politiques, II, 7. _Leplay_, Les Ouvriers des deux Mondes,
+     II, 1858. Very important are the "Reports from Her Majesty's
+     diplomatic and consular Agents abroad respecting the
+     Condition of the industrial Classes, and the Purchase-power
+     of money in foreign Countries." (1871.)]
+
+
+SECTION CLXXV.
+
+WAGE POLICY.--SET PRICE OF LABOR.
+
+Among the artificial means employed to alter the existing rate of wages,
+we may mention first, a rate of wages fixed by governmental authority.
+These have, in many places, constituted an intermediate step between
+serfdom and the free wage-system. In most cases, this measure was
+intended in the interest of the upper classes to prevent the lower
+obtaining the full advantage of their freedom under the favoring
+circumstances of competition.[175-1] In later times, another cause has
+frequently been added to this, viz.: by diminishing the cost of
+production to increase foreign sales. (See � 106.) In the higher stages
+of civilization, nations will scarcely look with favor on the diminution
+of the rightful, for the most part, individually small gains of the most
+numerous, the poorest and most care-worn class of the community.[175-2]
+The purchasers of labor would, in consequence, be badly served, since
+they would have lost the possibility of obtaining better workmen by
+paying higher wages. Hence, there would, probably, be none but mediocre
+labor to be found.[175-3] On the other hand, fixed rates which keep
+within the limits described in � 114 are, under certain circumstances,
+desirable. This is especially the case where the purchasers of labor on
+the one hand, and the buyers of labor on the other, have formed
+themselves into united groups, and where the rate fixed is only in the
+nature a treaty of peace under governmental sanction, when a war over
+prices had either broken out actually or there was danger to fear that
+one would break out. It must not be forgotten, that thus far common
+labor has scarcely had any thing similar to an "exchange."[175-4]
+
+     [Footnote 175-1: The plague known as the black death of
+     1348, which devastated the greater part of Europe, was
+     followed by many complaints on the part of the buyers of
+     labor, of the cupidity and malicious conspiracies of the
+     working classes. (See _supra_ � 160.) Fixed rates of wages
+     under Peter the Cruel of Castile, 1351; contemporaneously in
+     France, Ordonnances, II, 350, and in England, 25 Edw. III,
+     c. 2; 37 Edw. III, c. 3. In France, the wages of a thresher
+     were fixed at the one-twentieth or the one-thirtieth of a
+     _scheffel_, while in present Saxony it is from
+     one-fourteenth to one-twelfth. In England, under the same
+     ruler, who had seen his castle at Windsor built, not by day
+     laborers for wages, but by vassal masons, vassal carpenters,
+     etc., whom he got together from all parts of the kingdom.
+     That the rates might not be evaded, the succeeding king
+     forbade both the leaving of agriculture for industry and
+     change of domicile without the consent of a justice of the
+     peace. (12 Richard II., c. 3.) All such provisions were
+     little heeded in the 16th century. (_Rogers_, the Statist.
+     Journal, 1861, 544 ff.)
+
+     Fixed rates of wages under Henry VII. and Henry VIII., in
+     the interest of workmen. (_Gneist_, Verwaltungsrecht, II,
+     Aufl., 461 ff.) The fact that in 5 Elizabeth, c. 4, another
+     attempt was made to fix the rate of wages by governmental
+     provisions, in which the person paying more than the sum
+     fixed was threatened with 10 days' imprisonment, and the
+     person receiving less with 12, was in part akin to the
+     English poor laws. If a poor man had the right to be
+     eventually employed and supported by the community, it was,
+     of course, necessary that the justice of the peace should be
+     able to determine at what wages anybody should be prepared
+     to work before he could say: I can find no work. Extended by
+     2 James I., c. 6, to all kinds of work for which wages were
+     paid. (_Eden_, State of the Poor, V, 123 ff., 140.) The
+     buyers of labor in the eighteenth century frequently
+     complained that these fixed wages were more to the advantage
+     of workmen than of their masters. (_Brentano_, English
+     Guilds., ed. by _Toulmin Smith_, 1870, Prelim. CXCI.)
+
+     In Germany, the depopulation caused by the Thirty Years' War
+     explains why, before and after the peace of Westphalia, so
+     many diets were concerned with fixing the rate of wages of
+     servants. Compare _Spittler_, Gesch., Hanovers, II, 175.
+     Among the most recent instances of English fixed rates of
+     wages, is 8 George III., for London tailors, and the
+     Spitalfields Act of 1773, for silk weavers who had, a short
+     time before, revolted. Also in New South Wales, about the
+     end of the last century, on account of the high rate of
+     colonial wages. (_Collins_, Account of the English Colonies
+     of New South Wales, 1798.) Later, _Mortimer_, Elements of
+     Politics, Commerce and Finance, 1174, 72, maintains fixed
+     rates of wages to be necessary. In Germany the imperial
+     decree of 1830, tit., 24, and again the ordinance of Sept.
+     4, 1871, provide that each magistrate shall fix the rate of
+     wages in his own district. _Chr. Wolf_, Vernunftige Gedanken
+     vom gesellsch. Leben der Menschen, 1721, � 487, would have
+     the rates so fixed that the laborers might live decently and
+     work with pleasure.]
+
+     [Footnote 175-2: Proposal for a fixed sale of wages in the
+     protocols of the Chamber of Lords of Nassau, 1821, 12.]
+
+     [Footnote 175-3: The Spitalfields Act was repealed in 1824,
+     for the reason that the manufacturers themselves attributed
+     the stationary condition of their industries for a hundred
+     years to the fact that they were hampered by that act.
+     _Ricardo's_ and _Huskisson's_ prophecies, on this occasion,
+     fulfilled by the great impulse which the English silk
+     industries soon afterwards received.]
+
+     [Footnote 175-4: Compare _Brentano_, Arbeitergilden der
+     Gegenwart, II, 288. However, fixed rates of wages equitably
+     arranged, in the establishment of which neither party has
+     been given an advantage over the other, have continued to
+     exist much longer than our distrustful and novelty-loving
+     age would think possible. Thus compositors' wages in London,
+     from 1785 to 1800, from 1800 to 1810, from 1810 to 1816, and
+     from 1816 to 1866, remained unaltered; those of London ship
+     builders, from 1824 to 1867; of London builders, from 1834
+     to 1853, and from 1853 to 1865. (_Brentano_ II, 213. Compare
+     II, 250, 267 ff.)]
+
+
+SECTION CLXXVI.
+
+WAGES-POLICY.--STRIKES.
+
+Where the wages-receiving class feel themselves to be a special class,
+_vis-a-vis_ of the purchasers of their labor, they have frequently
+endeavored, by the preconcerted suspension of labor upon a large scale,
+to force their masters to pay them higher wages, or grant them some
+other advantage.[176-1] It is hard to say whether such strikes have more
+frequently failed or succeeded.[176-2]
+
+As a rule, a war over prices, carried on by such means, and without
+force on either side, must generally issue in the victory of the richer
+purchasers of labor.[176-3] The latter require the uninterrupted
+continuation of labor for their convenience and profit; but the workmen
+need it to live. It is but seldom that the workmen will be in a
+condition to stop work for more than a few months, without feeling the
+sting of hunger. The purchaser of labor can live longer on his capital;
+and the victory here belongs to the party who, in the struggle, holds
+out longest. Hence, a strike that lasts more than six weeks may, for
+that reason alone, be considered a failure. The employers of labor, on
+account of their smaller number and greater education, make their
+counter-coalition much more secret and effective. How many instances
+there are in which labor-saving machines have come into use more rapidly
+than they otherwise would have come but for the influence of these
+coalitions![176-4]
+
+On the other hand, it cannot be ignored that a host of workmen, by means
+of an organization which provides them with a unity of will, such as the
+heads of great enterprises naturally possess, must become much better
+skilled in carrying on a struggle for higher wages. Where wages in
+general tend to rise, but by force of custom, which is specially
+powerful here (� 170), are kept below their natural level, a strike may
+very soon attain its end. And workmen are all the more to be wished
+God-speed here in proportion as employers are slow to decide of their
+own motion upon raising wages, and where, under certain
+circumstances,[176-5] a single cold-hearted master might force all his
+competitors to keep wages down. If even the entire working class should
+follow the example of the strikers, so that all commodities, in so far
+as they are products of labor, should grow dearer to an extent
+corresponding to the rise in wages, there would still remain an
+improvement of the condition of the working class at the cost of the
+interest paid on capital and the profits of enterprise. It is, of
+course, otherwise with the struggle of workmen against the natural
+conditions which determine the rate of their wages (�� 161-166) in which
+they might, in turbulent times, possibly succeed[176-6] temporarily, but
+would, in the long run, have to fail.[176-7]
+
+The working class will be best fortified in such a struggle for higher
+wages when their organization is a permanent one, and when they have
+taken care, during good times, to collect a certain amount of capital to
+protect their members, during their cessation from work, against acute
+want. This is the object of the trades-unions as they have grown up in
+England, especially since the total decline of the guild system and of
+governmental provisions relating to apprentices, fixed rates of
+wages[176-8] etc. But it cannot be denied that these unions, although
+democratic in form, often exercise a very despotic sway over their
+members;[176-9] that they have, so far as the employers of labor are
+concerned, and the non-union laborers, gone back to a number of
+measures, outgrowths of the guild and embargo systems, which it was
+fondly hoped had been forever banished by the freedom of
+industry.[176-10] What many of the friends of this system hope it may
+accomplish in the future, viz.: regulate the whole relation between
+capital and labor, and thus, on the whole, control the entire public
+economy of a people,[176-11] is, fortunately, all the more certainly a
+chimera, as any national or universal approximation to this end would be
+the most efficacious way to compel employers of labor to the formation
+of corresponding and probably far superior opposing unions.
+Notwithstanding this, however, I do not doubt that the recent
+development of trades-unions in England is both a cause and an effect of
+the rise in wages in the branches of industry in question, as well as of
+the moral elevation of the condition of the working class which has
+simultaneously taken place.[176-12] The mere possibility of a strike is
+of itself calculated, in the determination of the rate of wages, to
+procure for the equitable purchaser of labor the desirable preponderance
+over the inequitable.[176-13]
+
+     [Footnote 176-1: Even _Boisguillebert_, Trait� des Grains,
+     was acquainted with instances of this kind in which from 600
+     to 800 workmen simultaneously left their masters. There are
+     much earlier instances in Italy. Thus, in Sienna, in 1381
+     and 1384, in which the nobility sided with the workmen.
+     (Rerum Ital. Scriptores, XV, 224, 294.) Strikes of
+     journeymen began to be much more frequent in Germany in the
+     guilds, from the time of the prospect of their becoming
+     masters themselves, and of their living in the family of the
+     masters had decreased. On similar strikes at Spires, in
+     1351, at Hagenau in 1409, and Mainz in 1423, see _Mone's_,
+     Zeitschrift, XVII, 56; XIII, 155, and _Hegel,_ Strassb.
+     Chr., II, 1025. A remarkable strike of the Parisian book
+     printers under Francis I. (_Hildebrand's_ Jahrb., 1873, II,
+     375 ff.) In so-called "home manufactures," where the
+     "manufacturer" is both orderer, preparer and seller, but
+     strikes are scarcely possible without much fixed capital.
+     The strike of the factory spinners in Lancashire in 1810
+     caused 30,000 workmen to stop work for four months.
+
+     Among the next following coalitions of labor, those of the
+     Glasgow weavers in 1812 and 1822 were very important. In the
+     latter, two workmen who would not participate with the
+     strikers were blinded with sulphuric acid. In 1818, great
+     strike by the Scotch miners. The Preston strike of 1853
+     lasted 36 weeks. It is said that 6,200 male and 11,800
+     female working people took part in it. (_Athen�um_, 30
+     Sept., 1854.) Compare _Morrison_, Essay on the Relations
+     between Labor and Capital, 1854. For a history of Swiss
+     strikes, especially of the Z�rich compositors' strike in
+     1873, see _B�hmert_, Arbeiterverh�ltnisse, II, 287 ff. Comic
+     type of a strike of married women in _Aristophanes_,
+     Lysistrata. A practical one in Rome at the departure of the
+     plebeians for the holy mountains, 492 before Christ.
+     (_Livy_, II, 32,) then, on a small scale, on the removal of
+     the pipers after Tiberius, 311 before Christ. (_Liv._, IX,
+     30.)]
+
+     [Footnote 176-2: Instances of successful strikes:
+     Fortnightly Review, Nov. 1865. Similarly in Germany, in
+     1865; but there, in truth, many strikes were only defensive
+     and intended to restore the former thing-value of the
+     declined money (Werke, XIII, 151). The English strikes, in
+     1866 and 1867, failed nearly all, so that wages again
+     declined to their level in 1859, and in many places, to what
+     they had been in the crisis-year 1857. (Ausland, 16 April,
+     1868.) As to how even in Victoria, strikes which opposed a
+     decline of wages from 16 to from 8 to 10 shillings a day
+     failed, after doing great injury, see Statist. Journ., 1861,
+     129 ff.]
+
+     [Footnote 176-3: The Preston strikers of 1853 got even from
+     their non-striking colleagues, �30,000. Had their masters
+     prevented this, the affair would have been terminated much
+     sooner. (Quart. Rev., Oct. 1859.) But employers are much
+     more frequently divided by rivalries than workmen,
+     especially in strikes against new machines or when a
+     manufacturer, who has too large a supply of goods on hand,
+     desires a strike himself. On account of their smaller
+     number, too, they are less in a condition to declare a
+     recusant colleague in disgrace. _Adam Smith's_ remark that
+     coalitions of capitalists are much more frequent than those
+     of workmen, only that much less is said of them, is hardly
+     applicable to our time. (Wealth of Nat., I, ch. 8, p. 100,
+     ed. Bas.) But, since the strike of the London builders in
+     1859, capitalists have begun to form more general opposing
+     unions. On a very energetic one among the ship builders on
+     the Clyde, see _Count de Paris_, Les Associations ouvri�res
+     en Angleterre, 1869, ch. 7. Examples on a smaller scale,
+     Edinburg Review, LXXXIX, 327 ff. On the other hand, a
+     "lock-out" on the part of capitalists is very difficult,
+     from the fact that it is impossible to prevent idle workmen
+     from being supported from the poor fund. Moreover, there can
+     be no greater folly than for the workmen to add insult to
+     their masters to their demand for higher wages, because then
+     the limits within which the latter are willing to continue
+     the business at all, are made much narrower, than they would
+     be on a merely economic estimate.]
+
+     [Footnote 176-4: Thus the "iron man," by which a single
+     person can put from 1,500 to 3,000 spindles in motion; also
+     an improved plane-machine, by means of which several colors
+     can be printed at once. (_Ure_, Philosophy of Manufactures,
+     366 ff.) Machines for riveting cauldrons. (_Dingler_,
+     Polytechnisches Journal, LXXV, 413.)]
+
+     [Footnote 176-5: Compare the statements in the Statist.
+     Journal, 1867, 7.]
+
+     [Footnote 176-6: Thus in several places in 1848, and in
+     Paris in 1789, where even the lackeys and apothecary clerks
+     formed such unions. (_Wachsmuth_, Gesch. Frankreichs im
+     Revolutionszeitalter, I, 178.) Similarly, frequently in
+     isolated factories.]
+
+     [Footnote 176-7: _Thornton_ mentions six instances in which
+     strikes and strike-unions may permanently raise wages: a,
+     when those engaged in an enterprise have a virtual monopoly
+     in their own neighborhood; b, when the country has, for the
+     industry in question, great advantage over other lands; c,
+     when the demand for the product of the industry is necessary
+     on account of an increasing number and increasing capacity
+     to pay of customers; d, when the progress of the arts,
+     especially of machinery, makes the industry more productive;
+     e, when the rise in the rate of wages affects all branches
+     of industry to the same extent, and at the same time; f,
+     when the industry is carried on on so large a scale that it
+     yields greater profit, even while paying a smaller
+     percentage than other industries. (On Labour, III, ch. 4.)
+     It is easy to see that many of these conditions meet in the
+     building industries in large cities.]
+
+     [Footnote 176-8: Compare _Brentano_ in the Preliminary Essay
+     to _T. Smith's_ English Guilds, ch. LXXII ff. The same
+     author's Die Arbeitergilden der Gegenwart Bd., I, 1871.]
+
+     [Footnote 176-9: The greater number of strikes begin with a
+     small minority, generally of the best paid workmen, whom the
+     others follow unwillingly but blindly. (Edinb. Rev., 149,
+     422.) The despotic power of the Unions over their members
+     depends principally on the fact that their treasury serves
+     not only to maintain strikes but at the same time as an
+     insurance fund for old age and sickness, and that every case
+     of disobedience of a member is punished by expulsion, i. e.,
+     with the loss of everything he has contributed. Hence the
+     Quart. Rev., Oct., 1867, advises that these two purposes
+     which are so hard, technically speaking, to reconcile with
+     each other, should be required to be kept separate,
+     especially as most of the unions, considered as benevolent
+     associations, are really insolvent. (Edinb. Review, Oct.,
+     1867, 421 ff.) On the other hand, both the _Count of Paris_,
+     ch. 3, and _Thornton_ are favorable to the admixture of
+     humane and offensive objects in the trades-unions, because
+     the former contribute to make the latter milder. _Brentano_,
+     I, 153, has no great objection to the insolvency shown by
+     the books of the unions _vis-a-vis_ of their duties as
+     insurers, since, hitherto, the subscription of an
+     extraordinary sum has never failed to make up the deficit. A
+     strike is detrimental in proportion as the striking workmen
+     represent more of the previous preliminary operations that
+     go to finish a product; as when, for instance, the 50 or 60
+     spinners in a factory strike, and in consequence, from 700
+     to 800 other workmen are thrown out of employment and forced
+     into idleness against their will. What might not have been
+     the consequence of the great union of the coal miners of
+     Durham and Northumberland, the members of which numbered
+     40,000 men, and stopped work from April to the beginning of
+     September, 1864, so that at last it became necessary to
+     carry Scotch coal to Newcastle! Compare _Engels_, Lage der
+     arbeitenden Klassen in England, 314 ff.]
+
+     [Footnote 176-10: The English unions even forbid their
+     members to exceed the established time of work, or the
+     established task. Thus, for instance, a penalty of one
+     shilling for carrying at any time more than eight bricks in
+     the case of masons, and a similar penalty inflicted on the
+     person's companions who witness the violation of the rule
+     and do not report the guilty party. Equality of wages for
+     all members; piece-wages allowed only when the surplus
+     earned is divided among one's companions. Hence the complete
+     discouragement of all skill or industry above the average.
+     If an employer exceeds the prescribed number of apprentices;
+     if he engages workmen not belonging to the union; if he
+     introduces new machines, a strike is ordered. With all this
+     the severest exclusion respectively of one class of
+     tradesmen by the other. If a carpenter lays a few stones, a
+     strike immediately! (Quart. Rev., October, 1867, 363, 373.)
+     Rigid shutting out of the products of one district from
+     another. (Edinburg Rev., October, 1867, 431.) The poor
+     hand-weavers were thus prevented going from their
+     over-crowded trade into another. (_J. Stuart Mill_,
+     Principles, II, ch. 14, 6.) However, many trades-unions
+     still seem to be free from these degenerations, and the most
+     influential unions the most moderate in their proceedings.
+     (_Count de Paris_, ch. 8, 9; _Thornton_, III, ch. 2.)
+     _Brentano_ expressly assured us that such degeneration of
+     the unions in England is confined to the building
+     trades-unions. (I, 68, 188.)]
+
+     [Footnote 176-11: "They have no notion of contenting
+     themselves with an equal voice in the settlement of labor
+     questions; they tell us plainly that what they aspire to is
+     to control the destinies of labor, ... to dictate, to be
+     able to arrange the conditions of employment at their own
+     discretion." (_Thornton_, III, ch. 1.) The membership of the
+     English trades-unions was estimated, at the Manchester
+     Congress, June, 1868, at 500,000 by some, and at 800,000 by
+     others. _Brentano_, II, 310, speaks of 960,000. Since 1830,
+     there have been frequent endeavors to effect a great
+     combination, with special organizations of the different
+     trades. During recent years, there have been even beginnings
+     of an international organization, although in Germany, for
+     instance, at the end of 1874, there were 345 trades-unions,
+     with a membership of over 21,000. (_M. Hirsch._) A formal
+     theory of workmen's unions to culminate in popular
+     representation, in _D�hring_, Arbeit und Kapital, 1866,
+     especially, p. 233; while the American _Walker_ accuses all
+     such combinations, which used compulsion on any one, of
+     moral high treason against republican institutions. (Science
+     of Wealth, 272.)]
+
+     [Footnote 176-12: The former view, for instance, of _Harriet
+     Martineau_, "The tendence of strikes and sticks to produce
+     low wages" (1834) is now unconditionally shared only by few.
+     When _Sterling_ says that the momentary success of a strike
+     is followed by a two-fold reaction which restores the
+     natural equilibrium, viz.: increase of the number of workmen
+     and decrease of capital (Journal des Econ., 1870, 192), he
+     overlooks not only the length of the transition time which
+     would certainly be possible here, but also that an altered
+     standard of life of the workmen prevents the former, and one
+     of the capitalists the latter. The _Count of Paris_ and
+     _Thornton_ do not doubt that the elevation of the condition
+     of the English working classes, as proved by _Ludlow_ and
+     _Jones_, is to be ascribed, in part, to the effect of the
+     trades-unions. Many of the unions work against the
+     intemperance and quarrelsomeness of their members. The
+     people's charter of 1835, came from the London "workingmen's
+     association."]
+
+     [Footnote 176-13: On the great utility of the arbitration
+     courts between masters and workingmen, by which the struggle
+     for wages is terminated in a peaceable manner and without
+     any interruption of work, see _Sch�ffle_, Kapitalismus and
+     Socialismus, 659. More minutely in _Thornton_, III., ch. 5.
+     _Faucher_, Vierteljahrsschr., 1869, III, 302, calls
+     attention to the fact that such "boards" may be abused to
+     oppress small manufacturers.]
+
+
+SECTION CLXXVII.
+
+WAGES-POLICY.--STRIKES AND THE STATE.
+
+Should the state tolerate the existence of strikes or strike-unions?
+Legislation in the past most frequently gave a negative answer to the
+question, as well from a repugnance for high wages as for the self-help
+of the masses.[177-1] But even leaving the above reasons out of
+consideration, every strike is a severe injury to the national resources
+in general,[177-2] one which causes that part especially to suffer from
+which those engaged in the various enterprises and the working class
+draw their income. And, even for the latter, the damage endured is so
+great that it can be compensated for only by very permanently high
+wages.[177-3] How many a weak man has been misled by a long cessation
+from work during a strike, which ate up his savings, into lasting
+idleness and a devil-may-care kind of life. When employers, through fear
+of strikes, keep all large orders, etc. secret, the workmen are not in a
+condition to forecast their prospects and condition even for the near
+future. And in the end a dread of the frequent return of such
+disturbances may cause capital to emigrate.[177-4]
+
+However, where there exists a very high degree of civilization, there is
+a balance of reasons in favor of the non-intervention of
+governments,[177-5] but only so long as the striking workmen are guilty
+of no breach of contract and of no crime. Where every one may legally
+throw up his employment, there is certainly no plausible legal objection
+to all of them doing so at once, and then forming new engagements.
+Coalitions of purchasers of labor for the purpose of lowering wages,
+which are most frequent though noiselessly formed, the police power of
+the state cannot prevent. If now it were attempted to keep the working
+class alone from endeavoring to correspondingly raise their wages, the
+impression would become general, and be entertained with right, that the
+authorities were given to measuring with different standards. Where the
+working classes so sensitively feel the influence of the government on
+the state of their wages, they would be only too much inclined to charge
+every chance pressure made by the circumstances of the times to the
+account of the state, and thus burthen it with a totally unbearable
+responsibility. Since 1824, freedom of competition has prevailed in this
+matter on both sides in England.[177-6] The dark side of the picture
+would be most easily brightened by a longer duration of contracts of
+labor.[177-7]
+
+Whether the trades-unions, when they shall have happily withstood the
+fermentative process now going on, shall be able to fill up the void
+created by the downfall of the economically active corporations of the
+latter part of the middle ages, we shall discuss in our future work, Die
+National�konomik des Gewerbfleisses. One of the chief conditions
+precedent thereto is the strict justice of the state, which should
+protect members of the unions from all tyranny by their leaders, and
+from violations of the legal rights of non-members.[177-8]
+
+     [Footnote 177-1: Thus even 34 Edw. III., c. 9. Journeymen
+     builders were forbidden by 3 Henry VI., c. 1, to form
+     conspiracies to enhance the rate of wages, under pain of
+     felony. Finally, 39 and 40 George III., c. 106, threatened
+     any one who, by mere persuasion, should induce a workman to
+     leave his master's service, etc., with 2 months in the
+     work-house, or 3 months' imprisonment. In France, as late as
+     June and September, 1791, all conspiracies to raise wages
+     were prohibited under penalty, the incentive to such
+     prohibition being the opposition to all _int�r�ts
+     interm�diaries_ between the _int�r�ts particulier_; and the
+     _int�r�t general_ which is characteristic of the entire
+     revolution. Compare the law of 22 Germinal, 11. The German
+     Empire on the 16th of August, 1731, threatened journeymen
+     strikers even with death, "when accompanied by great
+     refractoriness and productive of real damage." (Art. 15.)]
+
+     [Footnote 177-2: The strike of the spinners of Preston, to
+     compel equal wages with those of Bolton, lasted from October
+     to the end of December, 1836. The spinners got from their
+     treasury 5 shillings a week (previously 22-1/2 shillings
+     wages); twisters, 2 to 3 shillings; carders and weavers
+     lived on alms. In the middle of December, the funds of the
+     union were exhausted. Altogether, the workmen lost 400,000
+     thalers; the manufacturers, over 250,000; and many merchants
+     failed. (_H. Ashworth_, Inquiry into the Origin and Results
+     of the Cotton Spinners' Strike.) The Preston strike of 1853
+     cost the employers �165,000, the workmen, �357,000.
+     (Edinburgh Rev., July, 1854, 166.) The North-Stafford
+     puddlers' strike, in 1865, cost the workmen in wages alone
+     �320,000. Concerning 8 strikes that failed, mostly between
+     1859 and 1861, which cost in the aggregate �1,570,000, of
+     which �1,353,000 were wages lost, see Statist. Journ., 1861,
+     503. A great mortality of the children of workingmen
+     observed during strikes!]
+
+     [Footnote 177-3: _Watts_ assumes that the strikers seek to
+     attain, on an average, an advance in their wages of five per
+     cent. Now, a week is about equivalent to two per cent. of
+     the year. If, therefore, a strike lasted one month, the
+     increase of wages it operates must last one and three-fifths
+     years to compensate the workmen for their loss. A strike
+     that lasts 12-1/2 months would require 20 years to effect
+     the same, and this does not include interest on lost wages.
+     (Statist. Journal, 1861, 501 ff.) However, it is possible
+     that the striking workingmen themselves should lose more
+     than they gained, but that, for the whole working class, the
+     gain should exceed the loss; since those who had not
+     participated in the strike would participate in the
+     increased wages. _Thornton_ is of opinion that employers
+     have won in most strikes, but surrendered in the intervals
+     between strikes, so that now English workmen receive
+     certainly �5,000,000 more in wages than they would be
+     getting were it not for the trades-unions. (III, ch. 3-4.)]
+
+     [Footnote 177-4: By the Norwich strike, about the beginning
+     of the fourth decade of this century, what remained of the
+     industrial life of that city disappeared. (_Kohl_, Reise,
+     II, 363 ff.) Similarly in Dublin. (Quart. Rev., October,
+     1859, 485 ff.) In Cork, the workingmen's union, in 1827,
+     allowed no strange workmen to join them, and, it is said,
+     committed twenty murders with a view to that end. The
+     builders demanded 4s. 1d. a day wages. This discouraged the
+     erection of new buildings, and it frequently happened that
+     they found employment only one day in two weeks. (Edinb.
+     Rev., XLVII, 212.) When workingmen struggle against a
+     natural decline of the rate of wages, they, of course, add
+     to their misfortune.]
+
+     [Footnote 177-5: The grounds on which _Brentano_, following
+     _Ludlow_ and _Harrison_, justifies the intervention of the
+     state, have a very dangerous bearing, inasmuch as they do
+     not suppose, as a condition precedent, a perfectly wise and
+     impartial governmental authority.]
+
+     [Footnote 177-6: 5 George IV., c. 95: "provided no violence
+     is used." Further, 6 George IV., c. 129, and 122 Vict., c.
+     34. The law of 1871 declares the trades-unions lawful,
+     allows them the right of registration, and thus empowers
+     them to hold property. In France, the law of May 25, 1864,
+     alters articles 414 to 416 of the _Code p�nal_ to the effect
+     that only such strikes shall be punished as happen _� l'aide
+     de violences, voies de fait, manoeuvres frauduleuses_;
+     also coalitions against the _libre exercise du travail �
+     l'aide d'amendes, d�fenses, proscriptions, interdictions_.
+     But these amendments were rendered rather inoperative by the
+     fact that meetings of more than 20 persons could be held
+     only by permission of the police.]
+
+     [Footnote 177-7: As, for instance, the coal workers in the
+     north of England required a half year's service. So long as
+     the trades-unions consider themselves, by way of preference,
+     as instruments of war, it is conceivable how they oppose all
+     binding contracts for labor. So now among the German
+     journeymen book-printers, and so, also, for the most part,
+     in England. (_Brentano_, II, 108.) In quieter times, when
+     the trades-unions shall have become peace institutions, this
+     will be otherwise. We cannot even enjoy the bright side of
+     the freedom of birds without enduring its dark side! In
+     Switzerland, breaches of contract by railroad officers are
+     guarded against by their giving security beforehand; in
+     manufactures, by the holding back of from 3 to 14 days'
+     wages. (_B�hmert_, Arbeiterverh�ltnisse, II, 91, 388 ff.)]
+
+     [Footnote 177-8: In Switzerland, the trades-unions have
+     shown themselves very powerful against the employers of
+     tradesmen, but rather powerless against manufacturing
+     employers, and thus materially increased the already
+     existing inferiority of the former. (_B�hmert_, II, 401.)
+     They may, however, by further successful development,
+     constitute the basis of a new smaller middle class, similar
+     to the tradesmen's guilds at the end of the middle ages; and
+     indeed by a new exclusiveness, in a downward direction. This
+     would be a bulwark against the destructive inroads of
+     socialism similar to that which the freed peasantry in
+     France were and still are. While this is also _Brentano's_
+     view, _R. Meyer_, Emancipationskampf des vierten Standes,
+     1874, I, 254 ff., calls the trades-unions a practical
+     preparation for socialism to which the English "morally went
+     over" in 1869 (I, 751); which indeed loses much of the
+     appearance of truth from the fact that _Marx_ (_Brentano_,
+     Arbeitergilden, II, 332) and the disciples of _Lassalle_
+     (_Meyer_, I, 312) hold the trades-unions in contempt. _John
+     Stuart Mill_ approves of all trades-unions that seek to
+     effect the better remuneration of labor, and opposes all
+     which would bring the wages paid for good work and bad work
+     to the same level. (Principles, II, ch. 14, 6; V, ch. 10,
+     5.) Compare _Tooke_, History of Prices, VI, 176. Reports of
+     the Commissioners appointed to inquire into the Organization
+     and Rules of Trades-Unions, 1857.]
+
+
+SECTION CLXXVIII.
+
+WAGES-POLICY.--MINIMUM OF WAGES.
+
+The demand[178-1] so frequently heard recently, that the state should
+guaranty an "equitable" minimum of wages, could be granted where the
+natural rate of wages has fallen below that minimum, only on condition
+that some of the working class in the distribution of the wages capital
+(no longer sufficient in all the less profitable branches of business)
+should go away entirely empty handed. Hence, as a rule, in addition to
+that wages-guaranty, the guaranty of the right to labor is also
+required. But as useful labor always finds purchasers (the word "useful"
+being here employed in the sense of the entire economy of a people, and
+understood in the light of the proper gradation of wants and the means
+of satisfying them), such a right to labor means no more and no less
+than that the state should force labor which no one can use, upon
+others.[178-2] Something similar is true of Louis Blanc's proposition
+that the rate of wages of the workmen should be determined and regulated
+by their own votes and among themselves.[178-3]
+
+All such measures are injurious in proportion as they, by extending aid
+and the amount of the minimum, go beyond the limits of benevolence, and
+approach those of a community of goods. (� 81 ff.) However, if they
+would be lasting and not pull workmen rapidly down to the very depths of
+universal and irremediable misery, these measures should be accompanied
+by the bestowal of power on the guarantor to hold the further increase
+of the human family within bounds.[178-4]
+
+The condition of workmen can be continued good or materially improved
+only on condition that their numbers increase less rapidly than the
+capital destined for wages. The latter increases usually and most surely
+by savings. But only the middle classes are really saving. In England,
+for instance, the national capital increases every year by at least
+�50,000,000, while the working classes spend at least �60,000,000 in
+tobacco and spirituous liquors, _i. e._, in numberless instances, only
+for a momentary injurious enjoyment by the adult males of the class, one
+in which their families have almost no share. According to this, every
+compulsory rise in wages would be a taking away from the saving class
+and a giving to a class that effect no savings. Is not this to act after
+the manner of the savages who cut down a fruit tree in order more
+conveniently to relish its fruit?[178-5]
+
+Benjamin Franklin calls out to workmen and says: If any one tells you
+that you can become rich in any other way than through industry and
+frugality, do not listen to him; he is a poisoner! And, in fact, only
+those changes permanently improve the condition of the working classes
+which are useful to the whole people: enhanced productiveness of every
+branch of business in the country, increased capital, the growth (also
+relative) of the industrial middle classes, the greater education,
+strength of character, skill and fidelity in labor of workmen
+themselves. Much especially depends upon their foresight and
+self-control as regards bringing children into the world. Without this
+latter virtue even the favorable circumstances would be soon trifled
+away.[178-6]
+
+     [Footnote 178-1: Compare, besides, the Prussian A. L. R.,
+     II, 19, 2. In _Turgot_, _droit du travail_, and _droit au
+     travail_ are still confounded one with the other. Oeuvres
+     �d. _Daire_, II, 302 ff; especially 306. In such questions,
+     people generally think only of factory hands. But have not
+     writers just as good a _droit au travail_ to readers whom
+     the state should provide them with, lawyers to clients and
+     doctors to patients?]
+
+     [Footnote 178-2: _L. Faucher_ calls the _droit au travail_
+     worse than the equal and compulsory distribution of all
+     goods, because it lays hands on not only present products
+     but even on the productive forces. It supposes that
+     unlimited production is possible; that the state may
+     regulate the market at pleasure to serve its purposes; that,
+     in fact, the state can give without having first taken what
+     it gave. (M�langes d'Economie politique, II, 148 ff.) The
+     French national assembly rejected the "right to labor" on
+     the 15th of September, 1848, by 596 ayes to 187 nays, after
+     the provisional government had proclaimed it, February 25.
+     Le Droit au Travail � l'Assembl�e nationale avec des
+     Observations de _Faucher, Wolowski, Bastiat_ etc., by _J.
+     Garnier_, Paris, 1848.]
+
+     [Footnote 178-3: _L. Blanc_, De L'Organization du Travail,
+     1849.]
+
+     [Footnote 178-4: "Every one has a right to live. We will
+     suppose this granted. But no one has a right to bring
+     creatures into life to be supported by other people. Whoever
+     means to stand upon the first of these rights must renounce
+     all pretension to the last.... Posterity will one day ask
+     with astonishment what sort of people it could be among whom
+     such preachers could find proselytes." (_J. S. Mill_,
+     Principles, II, ch. 12.)]
+
+     [Footnote 178-5: Compare _Morrison_, loc. cit. Quarterly
+     Rev., Jan. 1872, 260. The English savings in the savings
+     banks, between 1839 and 1846, increased yearly in amount
+     only �1,408,630, and scarcely half of this came from
+     wages-workmen in the narrower sense of the term. What the
+     latter contribute to the fund for the old and sick is not
+     really productive capital but only individually deferred
+     consumption. Let us suppose that a man had an income of
+     $3,000 a year, of which he laid out yearly $2,000 ($1,000
+     for wages, $1,000 for rent and interest on capital), and
+     that he capitalizes $1,000. If now this man were, either
+     through philanthropy or in furtherance of socialism, to
+     double the wages he paid, the result would not be
+     detrimental to the economic interests of the whole country
+     only on the supposition that working classes who received
+     the increased wages should either save what he is no longer
+     able to save, or that by inventions or greater personal
+     skill, etc., they should increase the national income.]
+
+     [Footnote 178-6: According to _Hildebrand's_ Jahrbb., 1870,
+     I, 435, 193, North American workmen, the quality of work
+     being supposed the same, now accomplish from 20 to 30 per
+     cent. less than before 1860. Thus, in 1858, in New York, a
+     steam engine was manufactured for $23,000, in 2,323 work
+     days. In 1869, a similar one was built for $40,000 in 3,538
+     days. In the former case, the manufacturer made a profit. In
+     the latter, he lost $5,000.
+
+     _John Stuart Mill_, II, ch. 13. Against the
+     "philanthropists" who find it hard to preach to the poor,
+     the only efficacious means of improving their condition,
+     _Dunoyer_, L. du T., IV, ch. 10, says: The rich _do_ employ
+     it, although they have much less need of it! Even _Marlo_
+     admits that a guaranty of the right to labor, without any
+     measures to limit population, would, in a short time, and
+     irredeemably lead the country to destruction. (Welt�konomie,
+     I, 2, 357.) _von Th�nen_, der isolirte Staat., II, 1, 81
+     ff., would take a leap out of the vicious circle that those
+     who live by the labor of their hands can produce no rise in
+     their wages, because they are too little educated to hold
+     their increase properly in check; and that, on the other
+     hand, they cannot give their children a decent education,
+     because their wages are too low; by suggesting that
+     educational institutions should be established by the state,
+     and that these should elevate the subsequent generation of
+     workmen intellectually.]
+
+
+
+
+CHAPTER IV.
+
+INTEREST ON CAPITAL.
+
+
+SECTION CLXXIX.
+
+THE RATE OF INTEREST IN GENERAL.
+
+Interest on capital,[179-1] or the price paid for the use of capital,
+should not be confounded with the price of money (� 42); although in
+common life people so frequently complain of want of money where there
+is only a want of capital, and sometimes even when there is a
+superabundance of money.[179-2] This error is connected with the fact,
+that for the sake of convenience, loans of capital are so often effected
+in the form of money and that they are always at least estimated in
+money; but neither of these things is essential.
+
+In reality, however, we as seldom meet with interest[179-3] pure and
+simple, as we do with rent pure and simple. A person who works with his
+own capital can, at best, by a comparison with others, determine where,
+in the returns of his business, wages stop and interest begins.[179-4]
+And even in the loaning of capital, it depends largely on supply and
+demand, whether the creditor shall suffer a deduction in consequence of
+the absence of care and labor attending his gain, and whether the
+debtor, in order to get some capital at all, shall sacrifice a part of
+the wages of his labor.[179-5] When Adam Smith assumes it to be the rule
+that the "profit of stock" is about twice as great as the "interest of
+money,"[179-6] it is evident that a considerable amount of what is
+properly wages or profit of the employer (_Uhternekmer_ = undertaker) is
+included in the former.
+
+Many businesses have the reputation of paying a very large interest on
+the capital employed in them, when in reality they only pay the
+undertaker of them wages unusually high as compared with the amount of
+capital employed in them. Apothecaries, for instance, are called in some
+places "ninety-niners," because it is said that they earn 99 per cent.
+To discover the error, it would be sufficient to inquire the rate of
+interest on the capital borrowed by the apothecary on hypothecation, for
+instance, to enlarge his industry. But on the other hand, such a man who
+has more than any other manufacturer to do with the most delicate
+materials and with them in greater variety, requires proportionately
+greater caution and knowledge. Besides, as the guardian of the health
+and life of so many, and even as the comptroller of physicians, he
+should be a man who inspired universal and unqualified confidence.[179-7]
+By the rate of interest customary in a country, we mean the average rate of
+the interest on money-capital employed safely and without trouble.
+
+     [Footnote 179-1: In the case of fixed capital, we generally
+     speak of rent; in the case of circulating capital, of
+     interest. If interest be conceived as a fractional part of
+     the capital itself, the relation between the two is called
+     "the rate of interest," most generally expressed as a
+     percentage, and for one year.]
+
+     [Footnote 179-2: In Russia, great depreciation of the
+     assignats, and yet the people complained of a "want of
+     money." (_Storch_, Handbuch, II, 15.) According to the San
+     Francisco correspondent of the Times, Jan. 31, 1850, one per
+     cent. a day discount was paid there! Compare _North_,
+     Discourse on Trade, 11 seq.]
+
+     [Footnote 179-3: Gross interest and net interest
+     corresponding to the difference between gross product and
+     net product.]
+
+     [Footnote 179-4: This is the natural rent of capital in
+     contradistinction to the stipulated rent. (_Rau_, Lehrbuch,
+     I, � 223.)]
+
+     [Footnote 179-5: Thus, for instance, a so-called beginner
+     who is conscious of possessing great working capacity, but
+     who possesses for the time being little credit. _Tooke_,
+     Considerations on the State of the Currency, 1826,
+     distinguishes three kinds of capitalists: a, those who are
+     averse to running any risk whatever or incurring any
+     trouble, or are not able to incur any risk or trouble, for
+     whom every great increase of the sinking fund lowers the
+     rate of interest, and every war loan raises it; b, those who
+     will run no risk, but who are not averse to the trouble of
+     looking after their investments and of endeavoring to obtain
+     a higher rate of interest; c, such as, to obtain a higher
+     rate of interest, unhesitatingly risk something. Borrowers
+     he divides thus: a, those who employ the borrowed capital
+     and their own in such a way as to enable them to meet their
+     obligations and besides to earn a reasonable profit; b,
+     those who need others' capital to make up for the momentary
+     failure of the productiveness of their own; lastly c,
+     unproductive consumers.]
+
+     [Footnote 179-6: Wealth of Nat., I, ch. 9. The gross product
+     of English cotton industry was, in 1832, estimated at
+     �32,000,000, viz: �8,000,000 worth of material, �20,000,000
+     wages, �2,000,000 interest, �2,000,000 undertaker's profits.
+     (_Sch�n_, Nat. Oek, 104.)]
+
+     [Footnote 179-7: _Adam Smith_, I, ch. 10, 1: where the
+     reasons why a shop-keeper in a small town apparently gets a
+     larger interest than one in a large city, and yet gets rich
+     less frequently, are developed. The high profit made from
+     industrial secrets, Adam Smith very correctly considers
+     wages (I, ch. 7). Why not also that made by inn-keepers? (I,
+     ch. 10, 1.) When the returns of a business differ according
+     to circumstances which depend on the person of the conductor
+     of the business himself, and may by him be transferred into
+     another business, etc.; when the competition in it is
+     determined by personal agreeableness or disagreeableness, it
+     is evident that the larger returns are to be ascribed rather
+     to the highness of wages than of the rate of interest. The
+     profit also which a second-hand hirer makes is wages.
+     (_Riedel_, Nat. Oek., 376.)]
+
+
+SECTION CLXXX.
+
+RATE OF INTEREST IN GENERAL.--ITS LEVEL.
+
+Within the limits of the same national-economic territory, the different
+employments of capital tend uniformly to pay the same rate of
+interest.[180-1] If one branch of business were much more profitable
+than another, it would be to the interest of the owners of capital to
+allow it to flow into the former and out of the latter, until a level
+was reached.[180-2]
+
+The most noticeable exception to this rule is only an apparent one. The
+revenue (_Nutzung_) derived from the use of capital must not be
+confounded with its partial restoration.[180-3] Thus, for instance, the
+rent of a house, if the entire capital is not to be sooner or later
+consumed entirely, must embrace, besides a payment for the use of the
+house, a sum sufficient to defray the expenses of repairing it, and even
+to effect a gradual accumulation of capital for the purpose of
+rebuilding. The risk attending the investment of capital plays a very
+large part and must be taken into special consideration. If the risk in
+a business be so great that ten who engage in it succeed and ten fail,
+the returns of the former, which are more than double those usual in the
+country, in reality pay, when the ten who failed are taken into the
+account, only the rate of interest customary in the country. The risk
+may depend on the uncertainty of the person to whom the capital is
+confided;[180-4] on the uncertainty of the branch of business in which
+it is intended to employ it,[180-5] or on the uncertainty of the
+commercial situation in general; but especially may it depend on the
+uncertainty of the laws.[180-6] The temporary lying idle of capital, for
+instance, in dwelling houses at bathing places during the winter season,
+increases the rate of interest much more than it does the rate of wages
+in the corresponding case of the lying idle of labor; for the reason
+that there is something pleasurable in the repose of the latter.
+(_Senior._) On the whole, the vanity of mankind has an effect upon the
+rate of interest similar to that which it has on the rate of wages. (See
+� 168.) It causes the small chances of loss to be estimated below their
+real value, and the extraordinary chances of gain above it.[180-7]
+
+     [Footnote 180-1: Compare _Harris_, Essay on Money and Coins,
+     13. _Per contra, Ganilh_, Dictionnaire analyt., 107.
+     According to _Hermann_, Staatsw. Untersuchungen, 147, a
+     product which withdraws an amount of capital = _a_ from the
+     immediate use of its owner for _n_ months must bring in in
+     its price a surplus, over and above the outlay of capital,
+     which would bear the same ratio to the profit from another
+     product which employed an amount of capital = _b_, _m_
+     months, that _an_ bears to _bm_.]
+
+     [Footnote 180-2: The class of bankers, etc. which precisely
+     in the higher stages of civilization is one so highly
+     developed, is called upon to adjust these differences.]
+
+     [Footnote 180-3: Life annuities and annual revenues, _�
+     fonds perdu_.]
+
+     [Footnote 180-4: Hence, for instance, good men engaged in
+     industrial pursuits who employ borrowed capital productively
+     pay lower interest than idlers who are suspected of desiring
+     only to spend it in dissipation. High house-rent usually
+     paid by proletarians.]
+
+     [Footnote 180-5: Thus even in _Anderson's_ time, it was
+     necessary that the profit of one good year in the whale
+     fishery should compensate for the damage caused by six bad
+     ones. (Origin of Commerce, III, 184.) Slave-traders made
+     their calculations to lose from three to four out of five
+     expeditions. (Athen�um, May 6, 1848) Similarly in smuggling
+     and contraband. High rate of interest in gross adventure
+     trade and bottomry contracts, frequently 30 and even 50 per
+     cent.; in ancient Athens, for a simple voyage to the Black
+     Sea, 36 per cent., while the rate of interest customary in
+     the country was only from 12 to 18 per cent.; the interest
+     paid by rented houses only 8-1/7, and by land leases only 8
+     per cent. (_Bockh_, Staatshaushalt der Athener, I, 175 ff.;
+     _Isaeus de Hagn._, Hered., 293) In Rome, before Justinian's
+     time, maritime interest was unlimited. (_Hudtwalker_, De
+     Foenore nautico Romano, 1810.) And so in the manufacture of
+     powder, the frequent explosion of the mills has to be taken
+     into account: in France and Austria, 16 per cent. per annum.
+     (_Hermann_, Principien, 119.) Here belong those new
+     enterprises which, when they succeed, pay a high profit.
+     _Thaer_, in reference to this insurance premium, says: if
+     the capital employed to purchase a landed estate yields 4
+     per cent., the inventory (_Inventar_) should bring in at
+     least 6, and the working capital 12 per cent. (Ration.
+     Landwirthschaft.)]
+
+     [Footnote 180-6: Compare _supra_, � 91; _infra_, �� 184,
+     188.]
+
+     [Footnote 180-7: Thus _Friedr. Perthes_, in _Politz_,
+     Jarhb�chern, Jan., 1829, 42, thinks that the publication of
+     scientific books in Germany, since 1800, caused, on the
+     whole, a loss of capital. In the Canadian lumber trade,
+     also, speculators, in the aggregate, lost more than was
+     gained. Yet the business goes on because of its lottery
+     character. (_John Stuart Mill_, II, ch. 15, 4.) In
+     lotteries, it is certain that the aggregate of players lose.
+     So too in speculation in English stocks, on account of the
+     costs to be paid the state. In the case of frightful losses,
+     which may afford food for the imagination, the reverse is
+     found. Thus, for instance, in England, fire insurance, stamp
+     duties included, was paid for at a rate five times as high
+     as mathematical calculation showed it to be worth.
+     (_Senior_, Outlines, 212 ff.) Much here depends naturally on
+     national character, which, in England for instance, or in
+     the United States, is much more adventurous than in many
+     quiet regions of continental Europe.]
+
+
+SECTION CLXXXI.
+
+RULE OF INTEREST IN GENERAL.--CAUSES OF DIFFERENT RATES.
+
+The real exceptions to the above rules are caused by a prevention of the
+leveling influx and outflow of capital. Among nations in a low stage of
+civilization, there is wont to be a multitude of legal impediments in
+this respect. The existence of a difference of classes, of privileged
+corporations, etc., not only restrains the transition of workmen, but
+also of capital from one branch of industry to another. But even the
+mere routine of capitalists, that blind distrust of everything new so
+frequently characteristic of easily contented men, may produce the same
+result.[181-1] In the higher stages of civilization, patents for
+inventions and bank privileges, are causes of a lastingly higher rate of
+interest than is usual in the country.[181-2] Finally, since in many
+enterprises only a large amount of capital can be used at all, or at
+least with most advantage, the aggregation of which from many small
+sources is ordinarily much more difficult than the division of a large
+one into small fractional parts; the rate of interest for very small
+amounts of capital, and especially in the higher stages of civilization,
+is usually lower than that of large amounts of capital. We need only
+mention interest paid by savings-bank investments.[181-3]
+
+If circulating capital has been changed into fixed capital, its yield
+will depend upon the price of the particular goods in the production of
+which it has been made to serve. Compared with the cost of restoration
+of fixed capital, this yield may, in a favorable case, constitute an
+extraordinarily high rate of interest, in an unfavorable a very low one;
+and the former of these two extremes has a greater chance of being
+realized, in proportion as it is difficult to multiply fixed capital of
+the same kind; the latter, the more exclusively it can be employed in
+only one kind of production, and the longer time it takes to be used up
+by wear.[181-4] When fixed and circulating capital co�perate in
+production, the latter, because it can be more easily withdrawn, but
+also more easily replaced, first takes out its own profit, that is the
+profit usual in the country and leaves all the rest to the former. When
+fixed capital is sold, practically no attention is paid to what it
+originally cost. The purchaser pays only for the prospective revenue it
+will yield, which he capitalizes at the rate of interest usual in the
+country. The seller henceforth looks upon his gain as an accretion to
+capital, his loss as a diminution of capital, and no longer as high or
+low interest.[181-5] That accretion might be considered the wages, paid
+once for all, for the intelligent labor which governed the original
+investment of the capital, and _vice versa_.
+
+     [Footnote 181-1: Thus the rate of interest in the Schappach
+     valley remained for a long time much lower than in the
+     vicinity, for the reason that the peasantry who had grown
+     rich through the lumber trade possessed notwithstanding
+     little of the spirit of enterprise. (_Rau_, Lehrbuch, I, �
+     233.)]
+
+     [Footnote 181-2: Here the law produces a species of
+     artificial fixation.]
+
+     [Footnote 181-3: _Von Mangoldt_, Unternehmergewinn, 150.]
+
+     [Footnote 181-4: In other words, the more fixed they are.
+     Thus, for instance, dwelling houses in declining cities,
+     canals, etc. which have been supplanted by better commercial
+     routes; or again, the shafts and stulms of a mine which has
+     been abandoned. When Versailles ceased to be a royal
+     residence, the value of inhabited houses sank to one-fourth
+     of what it had been. (_Zinkeisen_ in _Raumer's_ histor.
+     Taschenbuch, 1837, 426.) A rate of interest greater than
+     that usual in a country is seldom found where freedom of
+     competition prevails, since it is necessary there to
+     distinguish between rent and interest on capital. When in an
+     open city, the capital employed in the construction of
+     dwelling houses _detractis detrahendis_ pays 8 per cent.,
+     while the rate of interest customary in the country is only
+     4 per cent., the supply of houses will grow continually
+     greater. Only the difficulties in the way of transferring
+     capital from one business to another could here retard the
+     leveling process, which where the political prospect for
+     instance was bad, might last a long time--one of the
+     principal reasons why, in 1848, the rent of houses declined
+     much less than their purchase prices. The conjuncture was
+     not serious enough to prevent the increase of population;
+     but it entirely stopped the building of new houses. On the
+     other hand, a bridge or railroad company may maintain a high
+     rate of profit because competition cannot exist in the face
+     of the great expense such enterprises require; but
+     especially because the party who has here the advantage of
+     priority may lower the price of transportation to such a
+     point as to entirely discourage his rival. Compare
+     _Hermann_, Staatsw. Untersuchungen, 145 ff. Interesting
+     example of the London gas and water companies in _Senior_,
+     Outlines, 101.]
+
+     [Footnote 181-5: Thus, for instance, Leipzig-Dresden
+     railroad stock cost originally 100 thalers per share, and
+     was taken at that rate. The yearly dividends amounted in
+     1856 to 13 thalers; that is, 13 per cent. for the original
+     stockholders. But a person who on the 30th September, 1856,
+     paid 285 thalers for a share, received but an interest of
+     4-1/2 per cent. on his capital. It is characteristic, how
+     _Serra_, Sulle Cause, etc., 1613, I, 9, calls the high and
+     the low rate of interest _prezzo basso e alto delle
+     entrate_.]
+
+
+SECTION CLXXXII.
+
+VARIATIONS OF THE RATE OF DISCOUNT.
+
+The fact that in commerce, etc., the rate of interest on capital loaned
+for short periods of time (discount) is subject to great fluctuations,
+while the mortgage rate of interest, for instance, remains the same
+throughout, depends on similar causes.[182-1] Yet there are
+contingencies in trade which, when taken immediate advantage of, promise
+enormous profits, but which may disappear within a month; risks of the
+most dangerous kind which can be conjured only by the immediate aid of
+capital. These are both sufficient grounds of a high rate of interest.
+Again, there are times of the profoundest calm in the commercial world,
+during which capitalists are perfectly willing to make loans at a low
+rate of interest, provided they are sure to be able to get back their
+capital with the first favorable breeze that blows. Agriculture is too
+immovable to come opportunely to the assistance of capitalists, here as
+a receiver and there as a loaner of capital. As the cycle of its
+operations is gone through usually only in a series of years, sudden
+influxes or outflows of capital would cause it the greatest
+injury.[182-2]
+
+     [Footnote 182-1: _Nebenius_, Oeff. Credit, I, 74 ff. Thus,
+     Hamburg discount towards the end of the last century
+     fluctuated between 2-1/2 and 12 per cent., while the capital
+     invested in agriculture brought an interest almost
+     invariably of 4 per cent. (_B�sch_, Geldumlauf, VI, 4, 19.)
+     At the same time, in Pennsylvania, the usual rate of
+     interest was 6 per cent. per annum, and the rate of discount
+     not unfrequently from 2 to 3 per cent. a month. (_Ebeling_
+     Geschichte und Erdbeschreib. von Amerika, IV, 442.) During
+     the crisis of 1837, it happened that 1/4 per cent. a day was
+     paid. (_Rau_, Archiv. N. F. IV, 382.) In the Prussian ports,
+     during the crisis of 1810, it is said that in July the rate
+     of discount was 2-1/2 per cent. a month. (_Tooke_, Thoughts
+     and Details, I, 111.) In Hamburg and Frankfort the rate of
+     discount rose in the spring of 1848, but declined in June to
+     2; until December it was 1-1/4, until the summer of 1849,
+     3/4 per cent. (T�b. Zeitschr., 1856, 95.) Rate of discount
+     in France, about 1798, at least 2 per cent. a month.
+     (_B�sch_, loc. cit., IV, 52.) Half a year previous, capital
+     employed in the purchase of land paid an interest of from 3
+     to 4 per cent. Legal interest was 5 per cent.; discount, at
+     most, 6 per cent.; in very prosperous times 8-9, per cent.
+     (_Forbonnais_, Recherches et Consid�rations, I, 372.)]
+
+     [Footnote 182-2: Remarkable case in _Cicero's_ time in which
+     bribery, carried on on a large scale, raised the rate of
+     discount from 4 to 8 per cent. _Cicero_ ad. Quint. M, 15;
+     ad. Att. IV, 15.]
+
+
+SECTION CLXXXIII.
+
+EFFECT OF INCREASED DEMAND FOR LOANS.
+
+The price paid for the use of capital naturally depends on the relation
+between the supply and demand, and especially of circulating capital.
+The increase of the supply need no more unconditionally lower the rate
+of interest than the price of any other commodity. If 50 hunters kill
+1,000 deer yearly, and give 100 deer per annum as interest to the
+capitalists who provided them with ammunition and rifles, a second
+capitalist with an equal number of rifles and an equal amount of
+ammunition may appear on the scene. If now 2,000 deer a year are killed,
+the rate of profit of the capitalists will probably remain the same. But
+if the woods are not rich enough in game for this, or the hunters not
+numerous enough, too indolent, or too easily satisfied, the rate of
+interest falls.[183-1]
+
+The difficulties in the way of the desired increase of capital are here
+of great importance. The smaller the surplus over and above their
+absolutely necessary wants, which the people produce, the less their
+tendency to make savings, the less the inclination to capitalization;
+and the less the security afforded by the law is, the higher must the
+rate of interest be to induce people to face these difficulties. We may
+very well transfer the idea of cost of production to this
+condition.[183-2]
+
+The demand for capital depends, on the one hand, on the number and the
+solvability of borrowers, especially of non-capitalists like landowners
+and workmen; and, on the other hand, on the value in use of the capital
+itself. Hence the growth of population is, other circumstances being the
+same, a means to raise the rate of interest; because it infallibly
+increases the competition of borrowers of capital, even if the increased
+rate must take place at the expense of wages. The solvability or paying
+capacity of the land-owning class as contrasted with the capitalists
+can, in the last analysis, depend only on the extent and fertility of
+their lands and on the quality of their agricultural husbandry; the
+solvability or paying capacity of the working class, only on their skill
+and industry. Where these have grown, an increase of the rate of
+interest may be found in connection with an absolute growth of the rate
+of wages and of rent, because the aggregate income of the nation has
+become greater.
+
+The value in use of capital, which is more homogeneous in proportion as
+it has the character of circulating capital (_res fungibiles_) is, in
+most instances, synonymous with the skill of the working class, and the
+richness of the natural forces connected with it. The deciding element,
+therefore, is the yield of the least productive investment of capital
+which must be made to employ all the capital seeking employment. This
+least productive employment of capital must determine the rate of
+interest customary in a country precisely as cost of production on the
+most unfavorable land determines the price of corn (�� 110, 150), and as
+the result of the work of the laborer last employed does the rate of
+wages. (� 165.)
+
+What portion of the total national income, after deduction is made of
+rent, shall go to the capitalists and what portion to the working class,
+will depend mainly on whether the capitalists compete more greedily for
+labor or the laboring classes for capital.[183-3] If, for instance,
+capital should increase more rapidly than population, there must be a
+relative increase in wages, and _vice versa_.[183-4] This is true
+especially of that peculiar kind of higher wages which we shall (� 145,
+ff.) designate as the "undertaker's profit." The smaller the number of
+persons engaged in enterprises is, in comparison with the number of
+retired persons who live on their rents, incomes, etc., the smaller is
+the portion of the so-called net profit of enterprise the latter must be
+satisfied with in the shape of interest.[183-5]
+
+     [Footnote 183-1: It is one of _Ricardo's_ (Principles, ch.
+     21) chief merits, that he demonstrated the groundlessness of
+     the opinion that the mere increase of capital must, on
+     account of the competition of capitalists, lower the rate of
+     interest, as is assumed by _Adam Smith_, I, ch. 9, _J. B.
+     Say_, Trait�, II, 8, and others. Compare also, _John Stuart
+     Mill_, Principles, IV, ch. IV, 1.]
+
+     [Footnote 183-2: _Storch_, Handbuch, II, 20.]
+
+     [Footnote 183-3: Frequent withdrawals of capital must, other
+     circumstances being the same, temporarily raise the rate of
+     interest. In the long run, however, the question is decided
+     by this: whether public opinion considers labor a greater
+     sacrifice than the saving of capital. Compare _Roesler_,
+     loc. cit., 8.]
+
+     [Footnote 183-4: Compare _Hermann_, Staatsw. Unters., 240
+     ff. Very much depends on whether the new increased
+     consumption (of workmen when wages are rising, of
+     capitalists when wages are declining) is of goods which are
+     mainly the product of large capital, large factories, etc.,
+     or chiefly of common labor, (_von Mangoldt_, Grundriss, 155
+     seq.) When _Adam Smith_ suggests that the relation between
+     wages and the profit of capital is determined by this:
+     whether there is a market demand for more work or more
+     commodities, for more "work to be done" or "work done" (I,
+     ch. 7), he is, spite of appearances, very unsatisfactory.
+     _Malthus_ distinguishes a restrictive principle of the rate
+     of interest, viz.: the return made to the least productive
+     agricultural capital, and a regulative one, viz.: the
+     reciprocal relation between demand and supply of capital and
+     labor. (Principles, ch. 5, sec. 4.) _Ricardo_, ch. 6, makes
+     the profit of capital at all times and in every country
+     depend on the quantity of labor which it is necessary to
+     expend on the land which pays no rent, in order to satisfy
+     the wants of workmen--a very correct theory.
+
+     Only _Ricardo_ himself (ch. 21) and his school postulate
+     altogether too unconditionally that their wants would always
+     coincide with the minimum of maintenance or support. Thus,
+     for instance, _J. S. Mill_, Principles, IV, ch. 3, 4.
+     However, _Mill_ instead of _Ricardo's_ "wages" employs the
+     better expression, "cost of labor." _Senior_ teaches that
+     the distribution of the aggregate result between laborers
+     and capitalists depends on the anterior course of both
+     classes: on the value of the capital previously employed by
+     capitalists to produce the means of satisfying working men's
+     wants, and on the number of workmen which the previous
+     laboring population have brought into existence. (Outlines,
+     188 ff.) Concerning _von Th�nen's_ vain attempt at a general
+     formula, see _supra_, � 173. _Fourier's_ idea that 5/12 of
+     the product should be distributed among labor, 3/12 among
+     talent, and 4/12 among capital, is entirely baseless. (N.
+     Monde, 309 ff.) _Consid�rant_, Destin�e sociale, 192 ff. As
+     early a writer as _H. Boden_, F�rstliche Machtkunst, 1700
+     and 1740, 42, came strikingly near the truth. According to
+     him, a low rate of interest is produced by four
+     circumstances: surplus capital, a dearth of landed estates,
+     a want of credit and exact justice, and lastly, the heavy
+     taxation of capital.]
+
+     [Footnote 183-5: Thus, in the last century, Spanish
+     capitalists loaned capital readily to sure commercial
+     companies, at from 2 to 3 per cent. per annum. (_Bourgoing,_
+     Tableau de l'Espagne, I, 248.) The contemporary low rates of
+     interest in Hannover, _B�sch_, Geldumlauf, VI, 4, 12,
+     endeavors to explain by the absence of opportunities for
+     investment, as no one dared to loan to any extent on fiefs
+     or on the land of the peasantry, and because there was no
+     law governing bills of exchange, etc.]
+
+
+SECTION CLXXXIV.
+
+HISTORY OF THE RATE OF INTEREST.
+
+Among barbarous nations, the loaning of capital is wont to happen so
+seldom, and to be limited so strictly to near relations, that it does
+not yet occur to any one to stipulate for a regular compensation
+therefor.[184-1] But, however, when they pass from this state to
+interest proper, the rate must be, of course, very high.[184-2] The
+premium for insurance is here very great, the possibility and
+inclination to accumulate capital exceedingly small. Even of the
+existing supply of capital, a great part remains idle, because the
+faculty and the institutions necessary to concentrate it and permit it
+to flow are wanting. (� 43.) The unskillfulness of labor is more than
+overcome by the excess of fertile and naturally productive land, of rich
+sites still unoccupied, the cream of which, as it were, needs only to be
+culled. Population is indeed sparse, but the usually prevailing absence
+of freedom of the lower classes prevents wages claiming the full benefit
+of competition.[184-3] This last circumstance is especially
+important.[184-4] For a given amount of the national income and of rent,
+every depression of wages must obviously raise the rate of interest, and
+every enhancement of wages lower it.[184-5]
+
+     [Footnote 184-1: _Tacit._, Germ., 26; _Marculf_, Form., 18,
+     25 ff., 35; _Savigny_, Ueber das altr�mische Schuldrecht, in
+     the transactions of the Berlin Academy, 1833, 78 seq.]
+
+     [Footnote 184-2: According to the Lex Visig., V, 5, � 8, the
+     maximum rate of interest allowed on loans of money was
+     12-1/2 per cent., and on other _res fungibiles_, 50 per
+     cent. From the 12th to the 14th century, the Lombards and
+     the Jews in France and England took generally (?) 20 per
+     cent. a year. (_Anderson_, Origin of Commerce, _a._, 1300.)
+     Philip V. of France, in 1311, fixed the rate of interest at
+     the fairs in Champagne at 15 per cent. (a species of
+     discount) at most, and at a maximum everywhere of 20 per
+     cent. (Ordonnances de la France, I, 484, 494, 508.) The
+     legal rate of interest in Verona, in 1288, was fixed at a
+     maximum of 12-1/2 per cent.; in Modena, 1270, at 20 per
+     cent. (_Muratori_, Antiquitt. Ital., I, 894); in Bresica,
+     1268, at 10 per cent. (_v. Raumer_, Geschichte der
+     Hohenstaufen, V, 395 ff.) Frederick II. wished to reduce it
+     to 10 per cent. for Naples, but failed. (_Bianchini_, Storia
+     delle Finanze di Nap., I, 299.) The tables of _Cibrario_,
+     Economia polit. del medio Evo., III, 380, for 1306-1399,
+     show for upper Italy interest to have been at 20, 15, 14,
+     10, and also 5-1/2 per cent. About 1430 the Florentines, in
+     order to moderate the enormously high rate of interest,
+     called Jews to their city, and the latter promised not to
+     charge over 20 per cent. (_Cibrario_, III, 318.) In the
+     Rhine country, the Kowerzens, during the 14th century, took
+     from 60 to 70 per cent., for which they had, however, to pay
+     a heavy tax to the archbishop. (_Bodmann_, Rh. Alterth�mer,
+     716.) Of Jewish maximum rates of interest, in the 14th and
+     15th centuries, see _Stobbe_, Juden in Deutschland w�hrend
+     des M. Alters, 103, 110, 234 seq.; _Hegel_, Strassb. Chr.,
+     II, 977, 984.
+
+     The rate of interest usual in these countries must not
+     however be calculated from the data furnished by these
+     usurious rates and fixed rates of interest, simply. In
+     Germany, the rate of interest promised by princes in the
+     13th and 14th centuries was usually 10 per cent. The
+     Frankfort municipal loans made by Jews in the 14th century
+     bore interest at the rate of 9, 11-2/3, 13, 18, 26, and even
+     45 per cent. (_Kriegk_, F.'s B�rgerzwiste, 343, 539.) The
+     rate of interest in the purchase of annuities continually
+     declined between 1300 and 1500, especially in the time of
+     the emancipation of manual laborers. Old Base documents
+     give, between 1284 and 1580, as the highest rate, 11-3/9,
+     and as the least, 5 per cent. The latter became more and
+     more usual later, especially in the sale of house-rents
+     (_Hauszins_), so that in 1841 all annuities (_Renten_) might
+     be canceled by a payment of their amounts multiplied by 20.
+     Until the beginning of the 15th century, in the city, the
+     rule was 6 to 7 per cent.; outside of it, 8 to 10 per cent.
+     (_Arnold_, Geschichte des Eigenthums in den deutschen
+     St�dten, 222 seq., 227 seq.) According to the Bremen Jahrb.
+     of 1784, 164 seq., the rate of interest in the case of
+     _Handfesten,_ in 1295, = 10 per cent., gradually sank: in
+     the 15th century it was never over 6-2/3; after 1450,
+     generally 5; in 1511 only 4 per cent. In 1441 ff., in
+     Augsburg, people were satisfied with a business profit of
+     7-2/3 per cent., while the usual rate of interest paid by
+     house-rent, etc. was 5 per cent. (_Hegel_, Augsb. Chr., II,
+     134 seq., 157.) Handsome tables in the rate of interest in
+     the purchase of annuities for all Germany, from 1215 to
+     1620, give as the rule, 7 to 10, scarcely ever over 15 per
+     cent., in _M. Neumann_, Geschichte des Wuchers, 266 ff. For
+     the upper Rhine, compare _Mone's_ Zeitschr., 26 ff. Among
+     the Fathers of the councils of Constance and Basil 5 per
+     cent. was considered equitable. Compare _F. Hammerlin_,
+     1389-1457, De Emtione et Venditione unius pro viginti.
+     Russian interest at 40 per cent., according to the laws of
+     Jaroslaw (ob. 1054 after Christ). _Karamsin_, Russ. Gesch.,
+     II, 47.]
+
+     [Footnote 184-3: The high rate of interest in many countries
+     at present may be thus accounted for. In the United States,
+     during the last century, less than 8 per cent. was seldom
+     paid. (_Ebeling_, III, 152.) According to _M. Chevalier_,
+     Lettres sur l'Am�rique du Nord, 1836, I, 59, the rate of
+     interest in Pennsylvania was 6, in New York, 7, in most of
+     the slave states, 8-9; in Louisiana, 10 per cent. In South
+     Australia (1850) it was, with full security, 15-20 per cent.
+     (_Reimer_, S�daustralien, 39.) In the West Indies, about the
+     end of the last century, a strong negro might produce a
+     revenue equal to one-fourth of his capital value. (_B.
+     Edwards_, History of the British West Indies, II, 129.) In
+     Brazil, the lowest rate of interest was at 9 per cent., and
+     12-18 per cent. was nothing unusual. (_Wapp�us_, M. and S.
+     Amerika, 1871, 1413.) In Cuba, for the government 10, for
+     private parties, 12 to 16 per cent. (_Humboldt_, Cuba, I,
+     231.) In Potosi, in 1826, Temple got 30 per cent. interest
+     on chattel mortgage, and from 2 to 4 per cent. a month was
+     offered, while the rate of interest in Buenos Ayres amounted
+     to 15 per cent. per annum. (_Temple_, Travels, II, 217.) In
+     Russia, _Storch_, Handbuch, I, 262, speaks of 8-10 per cent.
+     According to _v. Haxthausen_, it was, in the interior, never
+     less than from 8 to 12 per cent. per annum; at Kiew and
+     Odessa, 1-1/4, 1-1/2 and 2 per cent. per month. (Studien, I,
+     58, 467; II, 495.) In _Greece_, the rate of interest on
+     first mortgages is at least 10, on a second, 15-18 per cent.
+     (Ausland, 1843, No. 82.)]
+
+     [Footnote 184-4: _Nebenius_, Oeff. Credit, I, 55.]
+
+     [Footnote 184-5: Only in this particular instance is what
+     _Ricardo_ so frequently insists on true, viz: that the rate
+     of wages can be increased only at the expense of the profit
+     of capital, and _vice versa_.]
+
+
+SECTION CLXXXV.
+
+HISTORY OF THE RATE OF INTEREST.--INFLUENCE OF AN ADVANCE IN
+CIVILIZATION.
+
+With an advance in civilization, the rate of interest is wont to
+decline.[185-1] [185-2] One of the chief causes of this phenomenon is the
+necessity, as population and consumption increase, to employ capital in
+the fertilization of less productive land, and in less profitable
+investments.[185-3] An increase in the stock of money does not
+necessarily depreciate the rate of interest. If this increase comes in
+connection with a corresponding depreciation of the individual pieces of
+metal, it cannot be said that the nation has thereby become richer in
+capital. All that would be required in such case is only a greater
+number of pounds of gold or silver, or more paper bills to represent the
+same capital.[185-4] Only during the transition-period, during which the
+depreciation of money is still incomplete, is the rate of interest wont
+to be lowered; and all the more, since loaned capital is generally
+offered and sought after in the form of money.[185-5] [185-6]
+
+The decline of the rate of interest generally shows itself earliest in
+the large cities, which are everywhere the national organ, in which the
+good and bad symptoms of later civilization may be soonest
+observed.[185-7]
+
+Moreover, the condition of capitalists is not necessarily made worse by
+a decline of the rate of interest. It is possible that, for a long time,
+the increase of capital should continue more rapid than the decrease of
+interest for each individual. (If, indeed, the aggregate interest of
+capital should become absolutely smaller, there is always a pleasant
+remedy available, viz.: to consume a part of the capital!) But, however,
+a decline of the rate of interest is nearly always followed by increased
+activity on the part of capitalists; and they come to the resolve to
+retire later to enjoy the results of their previous labors. In Holland,
+after the time of Louis XIV., no branch of business was wont to pay more
+than from two to three per cent. In the case of the purchase of land, no
+one calculated on more than two per cent. Hence it was scarcely possible
+for small capitalists there to live on their interest; and the good
+sense of the people so well adapted itself to this state of things that
+to live in leisure on one's rents was considered a not entirely
+honorable mode of existence.[185-8] The lower the rate of interest, the
+larger, in highly civilized countries, is the stock on hand of cash apt
+to become, for the reason that business men then hope to gain more by
+the advantages of cash payments than by the saving of interest.[185-9]
+[185-10]
+
+     [Footnote 185-1: _Proudhon's_ idea, that this decline might
+     at last bring about a total abolition of interest, is based
+     on the same error as this other: that since a man may keep
+     diminishing his per diem quantum of food, he might finally
+     dispense with food altogether. _Proudhon's_ Banque du
+     Peuple--People's Bank--which, by gradually diminishing the
+     interest on its loans to the minimum cost of its
+     administration, should compel other capitalists to follow
+     its example.]
+
+     [Footnote 185-2: Thus, in England, by virtue of 37 Henry
+     III., c. 9, the legal interest was = 10 per cent.; by 21
+     James I, c. 17 = 8; about 1651 = 6 per cent. (confirmed in
+     1660); by 12 Anne, ch. 16 = 5 per cent. In the time of
+     George II., where the security was good, only 3 per cent.
+     was, as a rule, paid. In France, the legal rate of interest,
+     at the beginning of the 16th century, was 1/10 of the
+     capital; after 1657, 1/12; 1601 (_Sully_), 1/16; 1634
+     (_Richelieu_), 1/18; 1665 (_Colbert_), 1/20. Compare
+     _Forbonnais_ Recherches et Consid�rations, I, 48, 225, 385
+     ff. It continued at this rate of 5 per cent. with short
+     interruptions until the revolution. (_Warnk�nig_, Franz.
+     Staats. und Rechtsgeschichte, II, 588 seq.)
+
+     The rates of interest in Russia, in the 16th century, had
+     already declined to 20 per cent. (_Herberstein_, Reise, 41
+     ff.; _Karamsin_, Russ. Geschichte, VII, 169.) In Holland, in
+     1623, it was estimated that land purchases paid 3 per cent.;
+     hypothecations, 4 to 6; deposits, 5 to 6; a flourishing
+     business, 10 per cent. Compare _Usselinx_ in _Laspeyres_,
+     Geschichte der volkswirthschaftl. Anschauungen der
+     Niederl�nder, 76. About 1660, the rate of interest usual in
+     Italy and Holland was at most 3 per cent. (in war times, 4);
+     in France, 7; in Scotland, 10; in Ireland, 12; in Spain, 10
+     to 12; in Turkey, 20 per cent. (_Sir J. Child_, Discourse on
+     Trade, French translation, 75 ff.) Side by side with 6 per
+     cent. as the rate of interest in England, it was (a little
+     later) 10 in Ireland. _Petty_, Political Anatomy of Ireland,
+     74.
+
+     The same course of things is to be observed in ancient
+     times. In _Solon's_ time, and again in that of _Lysias_, it
+     was 18 per cent. (_B�ckh_, Staatshaushalt der Athener, I,
+     143 ff.) I am of opinion that the rate of interest declined
+     during this long interval, but rose again in consequence of
+     the Peloponnesian war. Among friends, in the time of
+     _Demosthenes_, 10 per cent. (adv. Onetor., I, 386.)
+     _Aristotle_, Rhet., III, 10, mentions 12 per cent., which
+     _Aeschines_, adv. Ctes., 104, and _Demosthenes_, adv. Aph.,
+     I, 820, 824, call low. The rate of commercial interest in
+     Egypt (146 before Christ) seems to have been 12 per cent.
+     per annum. (_Letronne_, Recompense promise � celui, etc.,
+     1833, 7.) Contemporaneously in Rome, a similar rate of
+     interest must have been considered usurious. (_Cicero_, ad.
+     Att., I, 12.) Under the emperor _Claudius_, 6 per cent.
+     (_Columella_, De Re rust., III, 3.) _Justinian_ allowed _to
+     personae illustres_ 4 per cent. per annum. (L. 26 Cod., IV,
+     32.)]
+
+     [Footnote 185-3: A Huron with his bow and arrow kills 12
+     pieces of game; the European, with a much better capital,
+     his rifle, only 5. Compare _v. Sch�zer_, Anfangsgr�nde, I,
+     28. _Mallthus_, Principles, ch. 5. According to _Ricardo_,
+     ch. 6, the decline of the rate of interest because of the
+     necessity of carrying on agriculture under harder
+     conditions, must make all capital of which raw material
+     forms a part more valuable; while the possessors of
+     money-capital particularly find no indemnification.
+     _Wakefield_, England and America, 1853, accounts for it by
+     saying that production, besides the co�peration of capital
+     and labor, needs "a field of employment;" and _Bastiat_,
+     Harmonies, ch. 5, 13, by saying that with the advance of
+     civilization, the results of former services lose in value
+     as compared with later ones, because performed under less
+     favorable circumstances.]
+
+     [Footnote 185-4: _D. Hume_, Discourses No. 4 On Interest.
+     Per contra, see _Locke_, Considerations of the Consequences
+     of the Lowering of Interest; _Law_, sur l'Usage des Monaies,
+     1697 (Daire); and _Montesquieu_, Esprit des Lois XXII, 6.
+     _Cantillon_ draws a very nice distinction: If the increased
+     amount _of_ money in a state comes into the hands of
+     loaners, it will decrease the current rate by increasing the
+     number of loaners; but if it comes into the hands of
+     consumers, the rate rises, because now the demand _for_
+     commodities is so much greater. (Nature du Commerce, 284.)]
+
+     [Footnote 185-5: The reviews in the G�ttingen G. Anz., 1777,
+     and of _von Iselin_, in the Ephemeriden der Menschheit, II,
+     170 ff., 177, question _Adam Smith's_ (Wealth of Nat., II,
+     ch. 4) entirely too positive denial of the influence of the
+     American production of gold and silver on the diminution of
+     the rate of interest, a view which was shared also by
+     _Turgot_, Form. et Distr., � 78. See a beautiful comparison
+     between a declining of the prices of the currency which,
+     promotes production, with the phenomena attending the growth
+     of a tree, in _Sch�ffle_, N. Oek., II, Aufl., 249.]
+
+     [Footnote 185-6: Thus the rate of interest in Rome fell from
+     12 to 4 per cent. when Octavian suddenly threw the treasures
+     of conquered Egypt upon the market, and the price of
+     commodities only doubled. When later commerce had divided
+     this amount of money among the provinces, it rose again.
+     (_Sueton._, Oct., 41; _Dio C._, LI, 17, 21; Oros, IV, 19.)
+     _Law's_ emissions of paper, in colossal amounts, depressed
+     the rate of interest to 1-1/4 per cent. (_Dutot_,
+     R�flexions, 990--Daire.) But as soon as the paper money had
+     lost its value, the former condition returned. Similar
+     observations in Rio de Janeiro: _Spix_ und _Martius_, Reise,
+     I, 131.]
+
+     [Footnote 185-7: While in Paris the capital safely invested
+     paid 2-1/2 to 3 per cent., 57 out of 61 _conseils g�n�raux_
+     declared, in 1845, that the rate of interest on
+     hypothecations, in their departments, was always over 5 per
+     cent.; 17 estimated it at an average of from 6 to 7 per
+     cent.; 12 at from 7 to 10; some said 12 and 15, and even 22
+     per cent. in the case of small sums loaned for a short time.
+     (_Chegarny_, Rapport au Nom de la Commission de la R�forme
+     hypoth., 29 Avril, 1851.) In Russia, at the beginning of
+     this century, the rate of interest in the Baltic provinces
+     was 6 per cent.; in Moscow, 10; in Taurien, 25; in Astracan,
+     30 per cent. (_v. Schl�zer_, Anfangsgr�nde I, 102.) In 1750,
+     in Naples, the rate of interest was from 3 to 5 per cent.,
+     in the provinces from 7 to 9 per cent. (_Guliani_, della
+     Moneta, IV, 1.) In Trajan's time in Rome, 6; in Bithynia, 12
+     per cent. (_Plin._, Epist. VII, 18; X, 62.)]
+
+     [Footnote 185-8: _Delacourt_ Aanwysing, 1669, I, 7.
+     _Temple_, Observations on the U. Provinces, ch. 6, Works L.
+     1854. Even _Descartes_ says of Holland's _ubi nemo non
+     exercet mercaturam_. Compare per contra, _H. Grotius_, Jus
+     Belli et Pacis, II, 12, 22. Very large capitalists, in
+     _Smith's_ time, certainly lived generally on the interest of
+     their money: Richesse de Hollande, II, 172. In England, at
+     the present day, likewise, a vast number of persons who live
+     on the interest of their money, occasionally take part in
+     the speculation in commodities; which explains why so-called
+     commercial crises are incomparably more extensive there, and
+     reach incomparably deeper, than in Germany. Similarly,
+     according to _Conring_, De Commercii, 1666, c. 36, in Venice
+     and Genoa.]
+
+     [Footnote 185-9: Hence the larger cash balances in England
+     at the present day, which, however, are not kept in the form
+     of coin, but of bank notes and bankers' deposits.]
+
+     [Footnote 185-10: As to how every frugal capitalist works to
+     the injury of capitalists as a class, but to his own
+     advantage, by lowering the rate of interest and increasing
+     the rate of wages, see _Senior_, Outlines, 188 ff.]
+
+
+SECTION CLXXXVI.
+
+HISTORY OF THE RATE OF INTEREST.--CAUSES OF A HIGH RATE IN THRIVING
+COMMERCIAL NATIONS.
+
+There are, however, even where a people's economy is in a flourishing
+condition, many obstacles which cause the decline of the rate of
+interest to take a retrogressive course, or which at least may delay it
+for a time.
+
+To this category belong all the modifications of a nation's economy
+alluded to in � 183.[186-1] Among them, therefore, is every extension of
+the limits of productive land. Let us suppose a nation which, its
+capital and labor remaining the same in every respect, should suddenly
+double its territory. The less productive places where investments were
+made in the old province are now abandoned, and labor and capital
+emigrate to the new. The result is, of course, an increase of the
+aggregate national income, and, at the same time, a decrease of rent. (�
+157.) Hence, the interest on capital and the wages of labor, taken
+together, must greatly increase. Which of these two branches shall
+profit most and longest by the increase will depend upon whether capital
+or the number of workmen increases most rapidly.[186-2] A similar effect
+must be produced when, by changes or modifications in the commercial
+situation, in the tariff, etc., a nation is enabled to obtain the means
+of subsistence at cheaper rates from more fertile and less settled
+countries.[186-3]
+
+The introduction of better methods of production has very different
+immediate consequences, according as these methods affect the
+commodities which minister to the wants peculiar to workmen as a class,
+or do not. Let us suppose, as a first case, that the cost of ordinary
+clothing is reduced one half by reason of newly discovered material,
+better machines, etc. As in the case of the whole people, so also in
+that of the owners of capital as consumers, there is, in consequence, an
+addition to their enjoyment of life. Their interest as well as their
+capital, compared with clothing material, would have become more
+valuable. But the relation between capital and interest, that is, the
+rate of interest, could not be directly changed. (Compare _infra_, note
+3.) Only when the working class employ their materially increased wages
+to increase population; when in consequence hereof, their wages,
+estimated in money, again decline beyond what it was before; when,
+therefore, the price of a given quantity of labor declines, does the
+rate of interest rise, although a portion of that which the workmen have
+lost may be added to rent on account of the increased population?[186-4]
+[186-5] If the applicability of the new method of production is confined to
+articles of luxury used by the upper classes, for instance to fine lace,
+the rate of interest usual in the country will be affected thereby only to
+the extent that through the medium of commerce such products are exchanged
+with foreign nations against commodities consumed by the working classes.
+But there are very few improvements in production which have not led to a
+greater cheapness of those things which satisfy the wants of the working
+class; and this is especially clear in the improvements in the means of
+transportation so usual in our day.
+
+However, the increase of fixed capital, such as machines, railroads,
+etc., once they are completed, may, at first, cause a depression of the
+rate of wages, as well as an enhancement of the rate of interest; the
+former from the fact that a number of workmen is thereby, at least
+temporarily, thrown out of employment; the latter because the conversion
+of so much circulating into fixed capital must diminish the supply of
+the former.[186-6]
+
+A second class of obstacles consists in the diminution of the supply of
+capital. War, for instance, always causes such a destruction of capital,
+and at the same time for the most part renders the reproduction of
+capital more difficult to such a degree that the rate of interest is
+wont to rise greatly.[186-7] Something similar is true of other great
+catastrophes and of extravagance on a large scale.[186-8] Every state
+loan, whether intended for direct consumption or to procure capital for
+use (_Nutzkapitalien)_, decreases the supply of circulating capital
+which most directly determines the market rate of interest.[186-9] [186-10]
+
+     [Footnote 186-1: _Wolkoff_ very well shows that the economic
+     progress of mankind is effected partly by the improvement of
+     production, and partly by saving. The former increases the
+     rate of interest, the latter lowers it. (Lectures, 182, 189.
+     Compare _supra_, � 45.)]
+
+     [Footnote 186-2: Thus the rate of interest in Russia rose,
+     after Catherine II. had conquered the provinces situated on
+     the Black Sea. (_Storch_, Handbuch, II, 34.) The same is
+     still more strikingly apparent in the judicious planting of
+     agricultural colonies.]
+
+     [Footnote 186-3: Abolition of the English corn laws! Foreign
+     commerce when very advantageous, always adds to the
+     well-being of the people; to the rate of interest, however,
+     only to the extent that articles which are calculated to
+     satisfy the wants of the working class become cheaper in
+     consequence; and this in turn lowers the rate of wages. Let
+     us suppose that a country had hitherto purchased yearly
+     10,000 barrels of wine for $1,000,000. It might now happen
+     that, in consequence of an advantageous commercial treaty,
+     for instance, the 10,000 barrels might be obtained for
+     $500,000. If, after this, wine-drinkers want to spend
+     $1,000,000 for wine as they did before, they of course
+     double their consumption of wine, but the rate of interest
+     remains unchanged. If, on the other hand, they leave their
+     consumption of wine where it was before and apply the saved
+     half million to effect an increased demand for home
+     products, the capital required for this production is set
+     free at the same time. Hence, the relation between the
+     supply and demand for capital has not changed, abstraction
+     made of certain difficulties in the transaction. Compare
+     _Ricardo_, Principles, ch. 7, rectifying _Adam Smith_,
+     Wealth of Nat., I, ch. 9.]
+
+     [Footnote 186-4: An increase in the rate of interest caused
+     by a diminution in the rate of wages does not last long.
+     Capital now increases more rapidly, and the increase is
+     accompanied by an increased demand for labor. If, in the
+     mean time, workmen have become accustomed to a lower
+     standard of life, the increasing wages are followed by an
+     increase of population: then the necessity of having
+     recourse to the cultivation of land of a worse quality is an
+     additional cause of a decreasing rate of interest. (Edinb.
+     Rev., March, 1824, 26.)]
+
+     [Footnote 186-5: According to this, it is easy to tell what
+     influence the increasing skill or activity of the working
+     class (for instance by a decrease in the number of holidays,
+     co�peration of wife and child) must have. Where there has
+     been no accompanying and corresponding elevation of the
+     standard of life, and of the want of the class, the gain
+     soon falls to the lot of the capitalists or landowners.]
+
+     [Footnote 186-6: See the very clear but not entirely
+     complete discussion in _John Stuart Mill_, Principles, IV,
+     ch. 3 ff. When new railways, machines, etc., before they are
+     complete, simultaneously increase the rate of interest and
+     the rate of wages, and even sometimes rent, although they do
+     not immediately increase the national income in any way, the
+     phenomena are to be explained, not by a distribution of
+     income, but as the result of an advance of capital made.]
+
+     [Footnote 186-7: Compare _supra_, � 184. The rise of the
+     rate of interest in Basil, between 1370 and 1393, _Arnold_
+     (loc. cit.) accounts for by the wars and defeats of the
+     upper German cities. Similarly in Z�rich, 1457. (_Joh.
+     M�ller_, Schweizer Geschichte, IV, 211.) During the time
+     immediately following the Spanish war of succession, the
+     _usuriers les flus mod�r�s_ in France got 12-15 per cent. a
+     year. (_Dutot_, R�flexions, 1866.) In Russia the rate of
+     interest, after the war of 1805-15, rose by 4-5 per cent.
+     (_Storch_, Handbuch, 35 seq.) Per contra, _Nebenius_, Oeff.
+     Credit., 70 seq.]
+
+     [Footnote 186-8: Thus the Hamburg conflagration, combined
+     with the bad harvests of 1841, raised the rate of interest
+     in Mecklenburg for a long series of years. Similarly in
+     W�rtemburg, the many bad harvests from 1845 to 1853, which
+     are said to have caused a deficiency of 50,000,000 florins.
+     (T�binger Zeitschr., 1856, 568.)]
+
+     [Footnote 186-9: In bad times, state loans are usually
+     effected at a disproportionally high rate of interest. This
+     also operates momentarily on the general rate of interest,
+     to the injury of persons engaged in business enterprises;
+     who, by the very fact of the withdrawal of so much capital,
+     become involved in an unfavorable competition. In the long
+     run, indeed, the high or low rates of interest paid by
+     national debts, in so far as the creditor cannot demand
+     reimbursement, has no influence on the rate of interest
+     usual in the country. Such debts as cannot be declared due
+     assume the character of stationary capital, the value in
+     exchange of which is determined by their yearly return,
+     capitalized at the rate of interest usual in the country.
+     (_Hermann_, Staatswirthschaftliche Untersuch., 223.)]
+
+     [Footnote 186-10: The co�peration of most of the causes
+     above mentioned raised the English rate of interest which
+     had sunk to 3 per cent. to an average of 5, from about 1760
+     to 1816. Thus _Gauss_, in a manuscript work which I have
+     used, relates that the fund for the support of professors'
+     widows in G�ttingen was, in 1794, expected to pay only 3 per
+     cent. In 1799, the trustees observed that their capital
+     could often be safely invested at 4 per cent.; somewhat
+     later the rate of interest rose to 5 per cent., at which
+     point it remained for years. About 1843 ff. the rate of
+     interest in old Bavaria was only 4 per cent.; in more highly
+     cultured Rhenish Bavaria, 5 per cent.]
+
+
+SECTION CLXXXVII.
+
+HISTORY OF THE RATE OF INTEREST.--EMIGRATION OF CAPITAL.
+
+Midway between these classes of obstacles lies the very usual proceeding
+of highly civilized nations whose rate of interest is low, to transfer
+their capital into countries with a higher rate of interest, where the
+production of raw material is predominant.[187-1] This is most
+thoroughly accomplished by the emigration for good of the capitalists
+themselves; but also least frequently, because the natural attachment of
+man to his native country is usually too powerful, among the well-to-do
+classes, to be overcome by the attraction of a higher rate of interest.
+Temporary settlements in foreign countries are by far more frequent.
+Either the capitalist removes there himself, for a time, to return
+enriched, at farthest, in his old age; or he establishes a permanent
+branch of his business there, and superintends it through the agency of
+a trusted representative. The inhabitants of northern Italy, during the
+last centuries of the middle ages, maintained such establishments, not
+only for the purpose of carrying on commerce in merchandise along the
+shores of the Levant, but also the money trade in the principal
+countries of the west.[187-2] Similarly, the Hanseatic cities
+contemporaneously in the north and northeast of Europe; and, to-day, the
+English in almost all the important seaport cities in the world.[187-3]
+Such enterprises are always somewhat dangerous, especially in countries
+but little advanced in civilization.[187-4]
+
+The best means to facilitate the migration of capital is credit. It is,
+indeed, true, that in international trade, ordinary private loans are
+seldom made. To make such loans would be to run too many risks; risks
+through a want of knowledge of persons or circumstances, on account of
+the difficulties in the way of continued supervision, and of being able
+to assert and defend one's rights away from home.[187-5] Loans are much
+more readily made to foreign states, to great corporations, or
+joint-stock companies, whose condition is well-known; and which, by
+reason of their perpetuity, have a deep and obvious interest in
+maintaining an honorable reputation. The issuing of certificates of
+stock, etc., has greatly facilitated international trade in
+capital.[187-6] But the mode of loaning in foreign parts preferred is to
+sell them commodities, and to require payment for them only after some
+time has elapsed, of course, with interest. Purchases, on the contrary,
+are paid for immediately, possibly even in advance.[187-7] The lower the
+rate of interest in a country is, the longer and more cheaply can it
+give credit to others; a new reason why the less civilized countries are
+particularly fond of trading with the most civilized.[187-8] [187-9]
+
+     [Footnote 187-1: _Nebenius_, Der �ffentliche Credit, 83 ff.
+     After the end of the Napoleonic war, English capital flowed,
+     by way of preference, towards South America, afterwards
+     towards Spain and Portugal; after 1830, to North America;
+     after 1840, towards Germany and France, to be invested in
+     the construction of railways in the latter countries.]
+
+     [Footnote 187-2: The inhabitants of Asti began in 1226 to
+     carry on the trade in money in trans-Alpine counties. In
+     1256, _Louis IX_. ordered 150 Asti money-changers to be
+     thrown into prison, and he confiscated the money they had
+     loaned in France, to the amount of over 800,000 livres. They
+     were afterwards turned over to their enemy, the Count of
+     Savoy, as usurers. (_Muratori_, Scr. Rerum Ital., XI, 142
+     seq.) About 1268, Louis IX. banished all money-changers of
+     Lombard or Cahors origin: they were allowed only three
+     months in which to collect their debts. (_Sismondi_,
+     Histoire des Fr., VIII, 112.) About 1277, again all Italian
+     money dealers were imprisoned, and 120,000 gold guldens
+     extorted from them. (_Giov. Villani_, VII, 52.) After the
+     Lombards had lost their freedom, the business passed into
+     the hands of the Florentines and of the inhabitants of
+     Lucca. (_Sismondi_, Gesch. der ital. Republiken, IV, 602;
+     _Dante_, Inferno, XXI, 38.) Great part played by the
+     brothers Franzesi as dealers in articles of luxury, and
+     loaners on pledge etc., at the court of Philip IV. They seem
+     to have instigated the persecution of other Italian money
+     dealers, in 1291, from jealousy. (_Sismondi_, Histoire des
+     Fr., VIII, 429 seq.) Great losses of the Florentines by the
+     English-French war in 1337: Edward III. remained in the debt
+     of his bankers Peruzzi and Bardi to the amounts respectively
+     of 135,000 and 184,000 marks sterling; so that they and many
+     others failed. France imprisoned all the Italian money
+     dealers, and compelled them to pay a large amount of
+     ransom-money. (_G. Villani_, XI, 71.) In 1376, the Pope who
+     was engaged in a struggle with Florence, called upon all
+     princes to despoil all Florentine merchants within their
+     jurisdiction of their wealth, and to sell them as slaves;
+     and France and England actually did so. (_Sismondi_,
+     Geschichte der ital. Republiken, V, 257 seq., VII, 74.)]
+
+     [Footnote 187-3: Shortly before the French Revolution, Cadiz
+     had over 50 wholesale merchants against 30 retail, 30
+     modistes and at least 100 tradesmen from France.
+     (_Bourgoing_, Tableau, III, 130.) Commercial colonies!]
+
+     [Footnote 187-4: Thus even the emperor Paul of Russia caused
+     the property of English factors to be confiscated. The
+     galleons which Holland and England captured in the Spanish
+     war of succession belonged mostly to Amsterdam houses.
+     (_Ranke_, Franz. Gesch., IV, 226.) Even _Galiani_, Della
+     Moneta, IV, 3, thinks that, on this account, such commerce
+     is incompatible with the warlike spirit. It is certain,
+     however, that a government like the English would do well
+     not to permit a war with such countries as Russia or the
+     United States to break out too suddenly, that their subjects
+     might have time to collect all their outstanding dues. When,
+     in 1855, it was reported in London that all Russian drafts
+     were dishonored, people looked upon that fact as the surest
+     sign of coming war. English merchants had called in their
+     advances to Russia during the preceding economic period, and
+     refused to make new ones.]
+
+     [Footnote 187-5: This of course disappears when the
+     borrowing country is dependent on the loaning country. Thus,
+     the Canton of Uri formerly prohibited the inhabitants of the
+     Livinerthal to borrow capital except from them. It is said
+     that, at the beginning of this century, the Uri capital then
+     loaned amounted to one-half a million florins, that is, an
+     average of 250 per householder. Now it is not over one-fifth
+     of that amount. (_Franscini_, Canton Tessin, 126.) Think
+     also of the plantation colonies! But even the East Indies
+     may be looked upon as a species of colony for England. Hence
+     _Fawcett_, Manual, 105, is rightly of the opinion that no
+     other country has the possibility of being as useful to the
+     East Indies as England. And in fact, the East Indian
+     railways obtained of their capital of �82,500,000, only a
+     very small part, �800,000, in India itself, a very small
+     proportion of which latter sum was subscribed by the native
+     population. (Ausland 24, Juli, 1869.)]
+
+     [Footnote 187-6: What England is to-day, the Italian
+     commercial cities were in the 16th and 17th centuries, viz.:
+     the chief market for foreign loans. (Compare _Mun,_
+     England's Treasure, 1664, ch. 4.) The Genovese loaned money
+     in foreign countries at 2 and 3 per cent. (_Montanari_,
+     Della Moneta, 1867, cap. 2.) It is said that the Dutch, in
+     1778 invested 1,500 millions of livres in foreign national
+     debts, especially those of France and England. (Richesse de
+     Hollande, II, 178.) According to _J. G. Forster_, Schriften,
+     III, 335, in 1781 alone, in Europe, 800 millions loaned
+     capital. The Niederl. Jaerboek of 1789, p. 729, estimates
+     the amount of interest coming from abroad, English and
+     French not included, at from 50 to 60 millions of florins.
+     About 1844, according to official estimates, 1,000 million
+     florins in foreign loans, that is one-third of whole
+     national income. (Allgemeine Zeitung, 1844, No. 35.) Now,
+     Belgium, 300 million florins, in Austrian evidences of
+     indebtedness. (Quarterly Review, October, 1862, 402.)
+     According to _Baumstark_, Staatswissensch. Versuche �ber
+     Staatscredit, etc., 1833, 77, foreign nations, between 1818
+     and 1825, borrowed in England �49,000,000; and, about the
+     same time, England participated in Russian, French and North
+     American loans to the extent of �55,500,000. It is said that
+     there were, in 1843, �25,000,000 English capital in the
+     canals, railroads and banks of the United States. (_Porter_,
+     Progress of the Nation, III, 4, 634.)]
+
+     [Footnote 187-7: It is evident, from many of Demosthenes'
+     orations on private matters, that Athens was in the habit of
+     advancing the commercial capital needed by a great part of
+     the inhabitants of the Mediterranean coast. Many colonial
+     cities, Phaselis, for instance, had the very worst
+     reputation in this respect. They were virtually pirates as
+     regards Athens. (Adv. Lacrit., 931.) Here also it seems that
+     the goods taken for the loan had to be brought to Athens.
+     (941.) On the regular advances of Prussian merchants to
+     their Lithuanian and Polish vendors, in the 15th century,
+     while the former were forbidden even to buy on credit, see
+     _Hirsch_, Geschichte des Danziger Handels, 167, 177. In
+     Colbert's time, the Dutch gave 12 months credit in Europe.
+     (_J. De Wit_, M�moires, 184.) In England, _Child_ perceives
+     a great advance in this: that in 1650, in all business in
+     the interior, there was a credit of 3 to 18 months given;
+     and in 1669, everything was paid for in cash. (Discourse on
+     Trade, 45.) Concerning previous times, see _W. Raleigh_,
+     Observations touching Trade and Commerce with the Hollander
+     and other nations, 1603. (Works, VIII, 951 ff.) In North
+     America, merchants in the interior frequently purchase their
+     goods of importers on 6 months credit. (_Tellkampf_,
+     Beitr�ge, I, 52.) In the West Indies, about the end of the
+     last century, the English gave a credit, generally, of from
+     12 to 16 months. (_B. Edwards_, History of the British West
+     Indies, II, 383.) In Brazil, in the case of imports, 4, 8
+     and even 12 months credit; payment in monthly installments,
+     and frequently even longer delay, without interest. In the
+     case of exports, when cash payments are not made, 1 per
+     cent. a month, (_v. Reden_, Garn und Leinenhandel, 332.)
+     Recently only about 40 per cent. of foreign advances are
+     made at 12 to 20 months, 60 per cent. at from 50 to 70 days.
+     (T�bing. Zeitschr., 1864, 517.)
+
+     In Buenos Ayres, the producer or collector of export
+     articles required the price to be paid usually a long time
+     in advance (_habilitacion_), a very bold but necessary
+     procedure, on account of his poverty. (_Robertson_, Letters
+     on S. America, I, 174 ff.) In the corn trade in South
+     Russia, at least one-half of the purchase money was required
+     to be paid in advance, and even before shipment, the other
+     half as soon as the corn arrived in the harbor, and, hence,
+     sometimes, long before it was put on board. (_W. Jacob_, On
+     the Corn Trade of the Black Sea, 23.) Compare _Tooke_, View
+     of the Russian Empire, I, 339, Richesse de Hollande, II, 43,
+     _Storch_, Handbuch, II, 61 seq. Russia was, about 1770, a
+     credit-giving nation to the still poorer Persians.
+     (_Gmelin_, Reise, III, 413.) The Spaniards also, in their
+     American colonies, had always an expedition ready and
+     waiting, the payment for which was made on the arrival of
+     the second. (_Depons_, Voyage dans la Terre Firme, II, 368.)
+     Moreover, active commerce simply, especially when
+     circuitous, may be considered as in some way an
+     international loan; and thus it is that the favorable
+     "balance," by means of which claim-rights are obtained in
+     foreign countries, is secured.]
+
+     [Footnote 187-8: Notwithstanding the gratitude of the United
+     States towards France, and spite of all the French
+     ambassador could do, the English immediately after the
+     conclusion of peace, attracted the greatest part of American
+     trade to themselves. (_Chaptal_, de l'Industrie Fr., I,
+     103.) Countries with a low rate of interest have an
+     advantage in this respect, which grows after the manner of
+     compound interest, when the duration of the advance of
+     capital is prolonged. (_Senior_, Outlines, 195.)]
+
+     [Footnote 187-9: How capitalists may, by the giving of
+     international credit, fall into an injurious habit, is shown
+     by the late and troublesome building up of the Dutch railway
+     system, while so many foreign railway enterprises were
+     provided with Dutch capital.]
+
+
+SECTION CLXXXVIII.
+
+HISTORY OF THE RATE OF INTEREST.--EFFECT OF A LOW RATE ON STATIONARY
+NATIONS.
+
+Beneficial as the spur of a low rate of interest is for countries
+capable of development, it is a heavy drag on a stationary people, and
+more so on those who have lost a portion of the field for the investment
+of their capital by the competition of too powerful rivals.[188-1] A
+real superabundance of capital is attended with cares and temptations
+for the middle classes very similar to those caused by a so-called
+over-population, especially to dishonesty and extravagance.[188-2] When
+capital, population and the skillfulness of labor remaining the same,
+continues to increase, the enlarged capital may very readily have every
+succeeding year only the same return to divide among its owners, that
+the smaller had in previous years.[188-3] Hence additional saving here
+would produce no real enrichment of the people; and it might even happen
+that the instinct to accumulate capital might in the future become
+torpid to a greater degree than the capital itself had increased. In any
+case, however, the decline of the rate of interest can continue only to
+a certain point. There are numberless persons who would rather consume
+their capital, or invest it in hazardous speculations than put it out at
+interest at one per cent. a year.[188-4] At least, the tendency of a
+decline in the rate of interest is, in the case of the richer, to
+increase the amount of capital consumed as compared with productive
+capital. The more moderate, sober and provident a people are, the lower
+may the rate of interest decline without producing this effect. And so,
+the more the capital of a nation is concentrated in the hands of a few;
+because then the owners of capital are all the later forced to break in
+upon it, for the sake of subsistence.[188-5] [188-6]
+
+Among nations which have totally declined, the rate of interest is wont
+to reach a high point once more; the natural result of great losses of
+capital and men, while, at the same time, the freedom of the lower
+classes and the security of property have been either curtailed or lost.
+The weakness of age is, in many respects, even in the case of nations, a
+second childhood.[188-7]
+
+     [Footnote 188-1: _Temple_, Works I, 102, assures us that the
+     Dutch in his time considered the payment of the principal of
+     a public debt a real misfortune: "they receive it with
+     tears, not knowing how to dispose of it to interest with
+     such safety and ease." On Italy, see _Bandini_ (ob. 1760),
+     Sopra le Maremme Sienese, 154 seq.; earlier _Montanari_,
+     Della Moneta, 57. In the England of the present time, small
+     capitalists especially belong to the so-called "uneasy"
+     classes.]
+
+     [Footnote 188-2: Numberless bankrupts and unbounded
+     extravagance in Holland. (Richesse de Hollande, II, 168.) In
+     England, the hazardous enterprises of 1825 were very much
+     promoted by the action of the government which a short time
+     before reduced the interest on its state debt. (_Tooke_,
+     History of Prices, II, 148 ff.)]
+
+     [Footnote 188-3: _J. S. Mill_, IV, ch. 4, 4. When _Ricardo_,
+     ch. 6, says that every increase of productive capital must
+     enhance the value in use, and still more the value in
+     exchange, of a nation's property, but under such
+     circumstances only to the advantage of the working class,
+     and still more of the land owning class, he at least
+     apparently presupposes an improvement, or increase of
+     labor.]
+
+     [Footnote 188-4: Think only of the so-called commercial
+     crises, the speculation-rage preceding which is excited by
+     the lowness of the rate of interest, the destruction of
+     capital in which makes the rate of interest to retrograde
+     materially. However, this very decline is, in itself, only a
+     spur to speculation in evidences of national indebtedness,
+     stocks, etc., in commodities, only where, without such
+     speculation, a rise in prices was to be expected. Thus, for
+     instance, the great English periods of speculation: 1796
+     ff., in colonial products; 1808 ff., in raw materials in
+     general; 1814, in articles of export, were times in which
+     there was not the slightest facility in obtaining credit.
+     (_Tooke_, History of Prices, III, 159.)]
+
+     [Footnote 188-5: Between 1829 and 1849, the highest rate of
+     interest paid by English capital employed in cotton
+     industries was little over 2-1/2 per cent. (Edinb. Rev.,
+     April, 1849, 429.)]
+
+     [Footnote 188-6: As the symptoms of a condition are very
+     frequently mistaken for its cause, there have been many
+     writers who, blinded especially by the contemplation of
+     Holland, considered the lowness of the rate of interest as
+     the _causa causans_ of all wealth, and who promised really
+     magical results from its legislative regulation by the
+     state. Thus _Sir Thomas Culpeper_, A Tract against the high
+     Rate of Usury, 1623; continuation 1630; _Sir J. Child_,
+     Brief Observations concerning Trade and the Interest of
+     Money, 1668; Discourse of Trade, 1690. _Anderson_ (ob.
+     1765), was of a similar opinion: Origin of Commerce, a.
+     1601, 1651; and even _Ganilh_, Dictionnaire analytique, 99
+     seq. (_Infra_, � 162.) Per _contra_, the anonymous essay,
+     Interest of Money mistaken, 1668, and _Locke_,
+     Considerations of the Consequences of the Lowering of
+     Interest and Raising the Value of Money, 1691. Most moderns
+     have considered the decline of the rate of interest an evil.
+     Thus, for instance, _Canard,_ Principes, ch. 5, who
+     uniformly makes this the starting point of a nation's
+     downfall. See also _McCulloch_, Principles, III, 8.
+     _Malthus_ draws a comparison between the saving of capital
+     and the generation of children: only a high rate of interest
+     makes the former really useful, and a high rate of wages the
+     latter.
+
+     Even great destruction and disturbances of capital by war,
+     by loans to the state, for instance, are soon made good,
+     provided the sources of the saving of capital are not dried
+     up. (Principles, III, 370 ff., 401, ff.) _John Stuart Mill_
+     expressly counsels rich and highly civilized nations not to
+     neglect beneficent enterprises, although economically
+     unproductive, because capital might be lost in them. The
+     result of such a loss would, under certain circumstances,
+     simply be that less capital would be exported or wasted in
+     speculation. (Principles, II, ch. 5, 1.) Similarly _Canard_,
+     who, therefore, compares state loans with blood-letting, as
+     a remedy for a plethoric disease. (Ch. 9.) _Turgot_
+     confounded cause and effect when he compared a high rate of
+     interest to an inundation, below the level of which nothing
+     can be produced; and which, the lower it became, the more
+     dry ground there was for men to work on. (Sur la Formation,
+     etc., � 89.)]
+
+     [Footnote 188-7: Rate of interest in Persia from 40 to 50
+     per cent. a year. (Ausland, 1844, No. 208.) In Tripoli,
+     Christians and Jews alike loan the Arabs at the rate of 5
+     per cent. a month; at least 1-1/2 or 2. (_Rohlfs_, von
+     Tripolis nach Alexandrien, 1871, I, 22.) In most of the East
+     Indian kingdoms, the rate of interest is so high for the
+     government itself that when the creditor, even without a
+     return of the capital, gets the interest only for a few
+     years, he is considered passably well indemnified. (_J. S.
+     Mill_, II, ch. 15, 2.) In China, 12 to 15 per cent.; 36
+     nothing unheard of. (_Barrow_, China, 562.)]
+
+
+SECTION CLXXXIX.
+
+INTEREST-POLICY.--LEGITIMATENESS OF INTEREST.
+
+The legitimateness of interest is based on two unquestionable grounds:
+on the real productiveness of capital, and on the real abstinence from
+enjoyment of it by one's self.[189-1] Let us suppose a nation of
+fishermen with no private ownership in land and no capital, living naked
+in caverns, on sea-fish which the ebb of the ocean has left in the
+puddles along the shore, and which are caught only with the hand.[189-2]
+All workmen here may be equal, and each catch and consume three fish a
+day. Let us again suppose that some clever savage reduces his
+consumption to two fish a day, for one hundred days, and uses the stock
+of one hundred fish collected in this way to enable him to devote all
+his strength and labor, during fifty days, to the construction of a boat
+and a net. With the aid of this capital he, from the first, catches
+thirty per day. What now will his fellow tribesmen, who are not capable
+of such intelligent and systematic self control to do as he has done,
+do? What will they offer him for the use of his capital? In discussing
+this question both parties will very certainly consider not only the
+fifty days' labor spent in the construction of the boat, etc., but also
+the one hundred and fifty days during which its maker had to abstain
+from his full ration of food. If the borrower, of the thirty fish which
+may be caught daily with the aid of his capital, gives twenty-seven
+away, his condition is at least no worse than it was at first. On the
+other hand, the lender, if compensated only for the wear and tear of his
+capital, would reap no profit whatever from his loan. The interest to be
+paid will be fixed somewhere between these two extremes by the relation
+between demand and supply. A loan which pays no interest is a donated
+use of capital. (_Knies._)[189-3] Interest may be called the reward of
+abstinence (_Senior_), in the same way as wages is called the reward of
+industry.[189-4] With the abolition of interest, exchange would be
+limited to the mere present, without any mediation between the past and
+the future. A great number of services would bring no equivalent in
+return, and, therefore, as a rule, never be performed. Most of the
+charges commonly made in our day against the "tyranny of capital" are,
+at bottom, only a complaint that capital is not inexhaustible; and even
+those workmen who are obliged to pay most to capital would be much worse
+off without it.
+
+     [Footnote 189-1: The Greeks very appropriately call interest
+     tokos, i. e., that which is born. In the loaning of capital
+     productively invested, the creditor, in the interest
+     received, consumes the real produce of his property. If the
+     debtor has consumed the property unproductively, the
+     creditor indeed lives on the debtor's other returns or
+     supplies; which, however, without his intervention would
+     probably have been consumed by their owner.]
+
+     [Footnote 189-2: We here, for the time being, make
+     abstraction of all entangling surrounding circumstances.
+     However, _Diodor._, III, 15 ff., and _Strabo_, XVI, 773,
+     describe a very similar condition of things among the
+     Ichthyographs; also _Hildebrand_, Reise, um die Erde, III,
+     2, in China. In the Sudan, whole generations fetch water
+     every day from a distant town, instead of working for a few
+     weeks to dig a deep well nearer home. (_Barth_, Afr. Reise,
+     III, 297.)]
+
+     [Footnote 189-3: The most recent relapse into the old error
+     of the unproductiveness of capital, viz.: that of _Karl
+     Marx_ (Das Kapital; Kritik der polit. Oekonomie, I, 167) is a
+     turning round and round of the author in the vicious circle
+     of his demonstration. If the value of every commodity
+     depends simply on the labor necessary to bring it into
+     existence, or on the time of labor required to produce it,
+     it is self-evident that the value of the capital consumed
+     for the purpose of its production, can at most be only
+     preserved in the new product, and that all the additional
+     value (_Mehrwerth_) of the latter should be ascribed to
+     labor. (172, and passim.) Hence, strictly speaking, the
+     capitalist who advances capital to workmen, is still bound
+     in duty to be grateful to the latter when the value of his
+     advance is preserved to him undiminished, (� 173) and all
+     interest levied by him should be considered as a payment
+     towards the extinguishment of the capital [debt] itself.
+     (556.) Relying on such theories, many socialists admit
+     private property and even the right of inheritance to means
+     of enjoyment and use capital (_Gebrauchskapitalien_)
+     provided only that land and productive capital should pass
+     over into the "collective property" of society, with
+     compensation, however, to their former owners. Considering
+     the short duration of most goods used in enjoyment or
+     consumed, the evil consequences of a community of goods
+     mentioned in � 81, could not be avoided to any extent by
+     this means.
+
+     How entirely fallacious the above assumption is, is seen
+     most strikingly in the case of such goods as cigars, wine,
+     cheese, etc., which, without the least addition of labor, by
+     merely postponing the consumption of them, obtain a much
+     larger value both in exchange and in use. Or, how would it
+     be possible, for instance, to reduce the value of a
+     hundred-year-old tree, over and above the cost of planting
+     it, to labor alone? Similarly, the fact that on a Chilian
+     _hacienda_, 25 per cent. of the cattle can be slaughtered
+     and no diminution of the herd take place. (_Wapp�us_, M. und
+     S. Amerika, 784.) _Strassburger_ rightly inquires: if all
+     the profit of capital is based on a cheating of workmen by
+     capitalists, who is cheated in the case in which a
+     manufacturer without workmen earns more with an increased
+     capital than before with a small capital? (_Hildebrand's_
+     Jahrb., I, 103.)]
+
+     [Footnote 189-4: In a time full of nabobism and pauperism,
+     when some can, without the least abstinence, make immense
+     savings, and others none at all even with the greatest
+     abstinence, we may comprehend where the socialists find food
+     for their derision of the expression, "reward of
+     abstinence."]
+
+
+SECTION CXC.
+
+INTEREST-POLICY.--AVERSION TO INTEREST.
+
+At the same time, there is a strong aversion to the taking of interest
+prevalent among nations in a low stage of civilization. Industrial
+enterprises of any importance do not as yet exist here at all, and
+agriculture is most advantageously carried on by means of a great many
+parcels of land, but with little capital. The purchase of land is so
+rare, and hampered by legal restrictions to such a degree, that loans
+for that purpose are almost unheard of. And just as seldom does it
+happen, by reason of the superabundance of land, that the heir of a
+landowner borrows capital to effect an adjustment with his co-heirs, and
+thus enter alone into the possession of the estate. Here, as a rule,
+only absolute want leads to loaning.[190-1] If, in addition to this, we
+consider the natural height of the rate of wages in such times, the
+small number and importance of the capitalist class (� 201), the tardy
+insight of man into the course and nature of economic production,[190-2]
+it will not be hard to understand the odium attached in the middle age
+of every nation to so-called interest-usury[190-3] (_Zinswucher_).
+
+Most religions, the Christian excepted (the universal religion!), have
+been founded in the earlier stages of the nations who profess them, and
+have there, at least outwardly, exercised their greatest influence. No
+wonder, therefore, that so many religions have prohibited the taking of
+interest. Thus, for instance, the Jewish which, indeed, allows interest
+to be taken from foreigners, but raises loaning without interest among
+Jews in their commerce with one another, to the dignity of a duty
+binding on the conscience of the beneficent rich.[190-4] [190-5]
+Similarly in the Koran.[190-6] The Fathers of the Church, also, on the
+whole, look with disfavor on the taking of interest, relying upon
+well-known passages in the Old Testament, and, in part, on misunderstood
+expressions in the New.[190-7] This is especially true of the Fathers of
+the Church from the beginning of the fourth century, when the Roman
+empire was frightfully impoverished by the devastations of the
+barbarians, and as a consequence the conditions as to interest which
+prevail in the lowest stages of civilization had returned. Mercy towards
+the poor usually occupies the foreground in the demonstrations of the
+Fathers.[190-8]
+
+     [Footnote 190-1: Distress-debts in contradistinction to
+     acquisition-debts. (_Schmalz_, Staatswirthsch. Lehre in
+     Briefen, I, 227.) Compare _Hesiod._, Opp., 647; also
+     _Herodot._, I, 138.]
+
+     [Footnote 190-2: Thus _Aristotle_, calls the taking of
+     interest a gain against nature, since money is only a medium
+     of exchange, and cannot produce its like. (Polit., 3, 23,
+     Schn.) Similarly, _Plato_, De Legg., V, 742, and _Seneca_,
+     De Benef., VII, 10. Compare, however, _Tacit_., Annal, XIII,
+     42 seq. As late a writer as _Forbonnais,_ 1754, accounts for
+     interest thus: Some people hoard their money instead of
+     spending it; hence a scarcity or want of money, and those
+     who need it are obliged, in order to draw it out, to promise
+     to pay interest. (El�ments de Commerce, II, 92 ff.)]
+
+     [Footnote 190-3: Numerous disturbances on account of debt,
+     during the first centuries of the Roman Republic, until
+     finally (compare _Livy_, VII, 42), the taking of interest
+     was in the year 349 (?) before Christ, entirely prohibited.
+     (_Tacit._, Annal. VI, 16.) The public opinion in such
+     matters may be understood from the words of Cato: _majores
+     ita in legibus posuerunt, furem dupli condemnari,
+     foeneratorem quadrupli_. (De Re rust.) The _foenerari_
+     compared with the _hominem occidere_. (_Cato_, in _Cicero_,
+     De Off., II, 25.) In the higher stages of civilization
+     little heed was paid to the law, in practice (compare
+     _Livy_, XXXV, 7; _Plut._, Cato, I, 21.), although the
+     democratic party always held fast to the legal perpetuation
+     of the prohibition of interest. (_Mommsen_, R�misch. Gesch.,
+     III, 493.)]
+
+     [Footnote 190-4: Exod., 22, 25; Levit., 25, 35 ff.;
+     Deuteron., 15, 7 seq.; 23, 19 seq.; Psalms, 15, 5; 109, 11;
+     112, 5; Proverbs, 28, 8; Jerem., 15, 10; _Hes._, 18, 8.
+     After the return from exile, the prohibition was restored.
+     (Net. 5, 1 ff.) Was there, in the long duration of such
+     prescriptions, an educational measure having reference to
+     the peculiar fault towards which the Jewish national
+     character had a special tendency? In Josephus's time even,
+     usury practiced on one's country people was universally
+     despised (Antiq. Jud., IV, 8, 25.), and the Talmud continues
+     it. Compare _Michaelis_, De Mente ac Ratione Legis M. Usuram
+     prohibentis. In Russia, the orthodox Jews are wont to evade
+     the legal rate of interest by exacting one-half the profit,
+     and estimating it approximately in advance at a probable
+     sum. If, afterwards, the debtor declares under oath that he
+     made no profit, the creditor has no more to say; but then
+     the borrower would lose all credit in the future. (_Bonav.
+     Mayer_, Die Juden unserer Zeit, 1842, 13 seq.)]
+
+     [Footnote 190-5: The Mosaic passages, however, only prohibit
+     the taking of interest from poor people of one's own
+     country.]
+
+     [Footnote 190-6: The prohibition in the Koran, ch. 2, 30, is
+     regularly evaded in Persia, by deducting the proper amount
+     at the moment the loan is made. (_Chardin_, IV, 157 ff.)
+     Under the Mongolian rulers, it was done by way of
+     preference, by a fictitious sale for cash, at prices out of
+     all proportion. "Why cannot capitalists either buy land or
+     carry on trade?" asked Sultan Gazan, on an occasion when the
+     prohibition of interest was strongly insisted on.
+     (_d'Ohsson_, Histoire des Mongols, IV, 397.)]
+
+     [Footnote 190-7: For instance, _Luke_, 6, 34 ff., where
+     interest is no more prohibited than in _Luke_, 14, 12 ff.,
+     the mutual invitation of friends to a feast. Not less
+     groundless is the supposed allegorical allusion (_Matthew_,
+     21, 12) to interest-creditors. Rather might an approval of
+     interest be inferred from _Matthew_, 25, 27.]
+
+     [Footnote 190-8: _Origen_, for instance, would have the
+     creditor take no interest; but exhorts the debtor to return
+     double the amount unasked. (Homil., III, ad. Ps., � 37.)
+     Hence there is here no condemnation of interest, but only an
+     effort to transform all legal relations into relations of
+     love. Quite the reverse in _Lactant._, Instit., VI, 12;
+     _Basil_, ad. Matth., 5 ff.; _Ambrose_, De Off., III, 3;
+     _Chrysost._, ad. Matth. Hom., 56; Tim., VII, 373 ff. (Paris,
+     1727); _Hieronym._, ad. Ezech., V, 367 c. (Francof, 1684);
+     _Augustin._, Epist., 54. Even _Cyprian_, 183, 318 (Paris,
+     1726).]
+
+
+SECTION CXCI.
+
+INTEREST-POLICY.--THE CANON LAW, etc.
+
+The canon law, from the first, endeavored to prevent contracts for
+interest. We may even say that the prohibition of interest-usury is the
+key-stone of the whole system of the political economy of the _Corpus
+Juris Canonici_. The development of that law coincides, as to time, with
+the senility of the Roman Empire and the childhood of modern
+nations.[191-1] In the golden age of papal power, every
+interest-creditor was refused the communion, the _testamenti factio_ and
+the right of ecclesiastical burial. Proceedings at law could not be
+instituted for the recovery of the principal debt until the creditor had
+restored all the interest obtained. In the council of Vienna, in 1311,
+it was declared heresy to defend the taking of interest. The universal
+antipathy of the church towards the growing importance of the
+_bourgeoisie_,[191-2] and the desire to give the spiritual courts an
+extensive jurisdiction in litigated cases, may have contributed largely
+to the adoption of these measures. In later medieval times, the secular
+power offered its services to execute these laws;[191-3] and, to judge
+of what public opinion in this matter was, we need only call to mind the
+decided disapproval of interest by Dante, Luther and Shakespeare.[191-4]
+
+The _Weddeschat_, a species of pledge or loan on security, constituted
+the transition from this state of things to the modern economic system
+of interest. The _Weddeschat_ was a sale with a reserved right of
+redemption, by which the debtor gave his creditor the use and enjoyment
+of a piece of land a sort of interest in kind, but which he could at any
+time recover back, by payment of the principal. This was not very
+oppressive on the debtor, as he was the only party who could recall the
+contract.[191-5] In a higher stage of civilization, indeed the
+continuance of this species of land-pledge would be exceedingly
+disadvantageous, since the momentary possessor of a piece of land which
+might be bought back by another person at any time at a price fixed in
+advance, would scarcely think of improving it.[191-6]
+
+And so, the introduction of rent-purchase (_Rentekauf_) was an important
+step in advance: the incumbrancing of a piece of land which remained in
+the possession of the debtor with an interest in kind paid to the
+creditor. The latter could never claim anything further, while the
+debtor and his heirs might redeem the land from this interest-incumbrance
+by paying back the purchase money.[191-7] As the Pope, on the 19th of
+January, 1569, renewed, in express terms, the prohibition of all interest
+not based on rent-purchase, so did the police ordinances of the Empire, of
+the sixteenth century, declare it to be the only lawful form of loaning at
+interest; provided, always, that only the debtor could demand the
+cancellation of the contract.[191-8] We find, however, that, on the whole,
+at least Protestant countries had, before 1654, adopted the modern Roman
+law relating to interest.[191-9] [191-10]
+
+However, the long persistence of the prohibition of the canon law in
+relation to interest, even with the refuge afforded by the introduction
+of the rent-purchase system, and of dormant partnerships (_Commanditen_)
+etc., so common in the sixteenth century,[191-11] would be
+unintelligible, if, contemporaneously, the Jews did not carry on an
+important and somewhat free trade in capital,[191-12] precisely as the
+Armenians, Hindoos and Jews do in the Mohammedan world of to-day.
+
+     [Footnote 191-1: The apostolic canons and several decrees of
+     councils of the fourth century prohibit the taking of
+     interest by the clergy. A Spanish provincial council dared,
+     in 313, to extend the prohibition to the laity. Pope Leo I.
+     condemned the taking of interest by the laity also, but only
+     in the form of a moral law. (443.) The synod of
+     Constantinople (814) punished the violation of the
+     prohibition with excommunication. See _Thomas Aquin._ (ob.
+     1274.) De Usuris, in the Qu�stiones disputatae et quod
+     libetales. The canon law, however, always permitted
+     delay-interest (_Verzugszinsen_), and Gregory IX, allowed
+     _justa et moderata expensa et congruam satisfactionem
+     damnorum_ to be taken into account, (c. 17, X.) De Fora
+     Comp. II, 2. A tacit recognition of the productiveness of
+     capital is to be found in c. 7, X. De Donatt. inter. Virum.
+     cett. IV, 20; and the later schoolmen, _Antonin_ and
+     _Bernhardin_, (ob. 1459 and 144) are pretty clear on the
+     point. But _Albertus Magnus_ had already recognized the
+     _damnum emergens_ and _Thomas Aquinas_ the _lucrum cessans_
+     as causes of interest. (T�binger Zeitschr., 1869, 151, 159,
+     161.) The essentially modern character of Roman law, which,
+     in the form it has finally assumed, is in harmony with a
+     high development of national economy, accounts for the fact
+     that the glosse of _Accursius_ relying on _Irnerius_ and
+     _Bulgarus_ entirely ignores the prohibition of interest. For
+     a similar reason, in the 16th century, _Donellus_ and
+     _Cujacius_ stand entirely on Roman ground. In the interval,
+     indeed, men like _Bartolus_ and _Baldus_ were not disquieted
+     by the canon law. (_Endemann_, Studien in der
+     R�misch-Canonischen Wirtchaftsund Rechtslehre, I, 18, 27
+     seq. 61.) Compare the rich historical material in
+     _Salmasius_, De Usuris, 1638; De Modo Usurarum, 1639, and De
+     Mutuo, 1640.]
+
+     [Footnote 191-2: _A. Thierry_, Lettres sur l'Histoire de
+     France, �d. 2., 248 ff.]
+
+     [Footnote 191-3: Thus the emperor Basil, in the year 867, as
+     _Justinian_ had before him, forbade the further payment of
+     interest, once the amount already paid equaled the
+     principal. (L. 29 seq.; Cod. IV, 32, Nov., 121, 2.) Compare
+     Sachsenspiegel, I, 54. _Edward the Confessor_ is said to
+     have issued the first prohibition of interest. (_Anderson_,
+     Origin of Commerce, a. 1045.) _Edward III._ forbade all
+     interest as the ruin of commerce. (Idem a., 1341.) About
+     1391, the lower House had its zeal aroused against the
+     "shameful vice of usury;" and again, in 1488, all interest
+     on money and all rent-purchases stipulated for on unlawful
+     conditions, were threatened with a fine of �20, the pillory,
+     and six months imprisonment. (_Anderson_, a., 1488.) In
+     France, the edict of Philip IV. of 1312. Compare
+     _Beaumanoir_, Co�tumes, ch. 67, des Usures, No. 2.]
+
+     [Footnote 191-4: _Dante_, Inferno, XI, 106 ff., suggests
+     that interest-creditors had violated the command of _Moses_,
+     I, 3. _Macchiavelli_ seems to judge otherwise: Compare
+     Istoria Fior., VII, a, 1464; VIII, a, 1478. Very interesting
+     discussions on the legitimateness of the taking of interest
+     in 1353 seq., in which the Dominicans, up to the time of
+     _Savonarola_, defended the strictest opinion. (_M. Villan_,
+     III, 106.) _Luther_, Tract on Trade and Money, 1524, and
+     Sermon on Usury, 1519. Later still, _Luther_ became more
+     moderate. Thus, in his letter to the Danzig counsel, 1525,
+     in _Neumann_, Geschichte des Wuchers in Deutschland, 617
+     ff., in which, for instance, he blames the forcible carrying
+     out of interest-prohibitions, draws a distinction between
+     rich and poor, etc. So, too, in his letter: An die
+     Pfarrherren, wider den Wucher zu predigen, 1540.
+     _Melanchthon_, Phil. moral., 137 ff., is also more moderate.
+     _Calvin_ was clearer in this matter, and no longer
+     recognized the canonical prohibition of interest. (Epistol�
+     et Responsa, Hanov., 1597, epist. 383.) Similarly
+     _Zwinglius_, who will not praise interest, but considers it
+     a natural consequence of property (Opp. ed. Tugur., 1530, I,
+     319 ff.), and even _Erasmus_, ad. Evang. Luc., 6, 44. Adagia
+     v. Usur� nautt. In _Shakespeare_, compare Merchant of
+     Venice. _Bodinus_ also rejects on principle, even Roman
+     interest, which he held to be 1-1/2 per cent. a year: De
+     Republ., 1584, V. 2. Even the practical Dutch excluded the
+     so-called "table-keepers," from the communion up to 1657.
+     Compare the contests hereon in _Laspeyres_, Gesch. d.
+     volkswirthsch. Ansich. d. Niederl., 258 ff.]
+
+     [Footnote 191-5: The mutual right of cancellation
+     (_K�ndbarkeit_) in the case of these contracts during
+     periods poor in capital and credit, would easily have ruined
+     the debtor. Compare _J. M�ser_, Patr. Ph., II, No. 18. Hence
+     municipal rights in the latter part of the middle ages,
+     which in many other respects are so antagonistic to Rome,
+     have seldom anything to object to its measures in this
+     matter.]
+
+     [Footnote 191-6: A reason why, as _A. Str�ver_ remarks, the
+     Church which was more a creditor than a debtor, never
+     approved the Weddeschat above mentioned.]
+
+     [Footnote 191-7: The institution of rent-purchase
+     (_Rentekauf_) was already developed in the Hanse cities at
+     the beginning of the fourteenth century. (_Stobbe_, in the
+     Zeitschr. f. deutsches Recht, XIX, 189 ff.) About 1420, the
+     bishops of Silesia inquired of the Pope, whether such
+     contracts which had been the practice in Silesia for a
+     century were lawful. The answer was a favorable one,
+     although he left the rate of interest free in this
+     particular case (Extr. Com. III, 5, 1, 2); after _Alexander
+     IV._, however, as early as 1258, had instructed inquisitors
+     not to take part in litigations concerning usurious
+     contracts. Formerly all such contracts were prohibited in
+     express terms. (Decret. Greg., V. 19, 1, 2), although, in
+     France, the ordinances of Louis IX. and Louis X. (1254 and
+     1315) had established fixed rates of interest therefor.
+     Between pledge and rent-purchase, the right of the (virtual)
+     loaner to expel the (virtual) borrower, which after fell
+     into disquietude, occupies, so to speak, a middle place.
+     (Compare _Eichhorn_, D. St.- und R.-Gesch., II, � 361, a
+     III, � 450.) It was decreed, in France, in 1565, that all
+     rent in kind should be converted into money rent.
+     (_Warnk�nig_, Franz., St.- und R.-Gesch., II, 585 ff.)]
+
+     [Footnote 191-8: Magnum Bullar. Roman., II, 295.]
+
+     [Footnote 191-9: A Prussian law allowing interest even
+     without a contract of rent-purchase as far back as 1385.
+     (_Voigt_, Geschich. von Preussen, V, 467.) In Marseilles, in
+     1406, a rate of interest of ten per cent. allowed.
+     (_Anderson_, Origin of Commerce, s. a.) Likewise in England,
+     37 Henry VIII., c. 9. In Brandenburg, 1565, 6 per cent.
+     (_Mylius_, C. C., March, II, 1, 11.) A retrograde step by 5
+     and 6 Edward VI., c. 20; by which all interest was again
+     prohibited. These laws had, practically, the effect of
+     increasing interest to 14 per cent., and were therefore
+     repealed in 1571. How unnatural the prohibition was is
+     apparent from the fact that by 4 and 5 Philip and Mary, c.
+     2, the possessor of 1,000 marks was estimated equal to a
+     person with �200 annual income. In Denmark, the taking of
+     interest at 5 per cent. was allowed in 1554, since "although
+     it is contrary to God's command, yet [according to an
+     opinion given by _Melanchthon_] this commerce cannot be
+     entirely abolished." (_Kolderup-Rosenvinge's_ D�nische R.
+     G., in _Homeyer_, � 142.) Similar views of the elector
+     Augustus, 1583. (Cod. August 1, 139 ff.)
+
+     The German Empire, in 1600, allowed the debtor to contract
+     that, in case of delay, the contract might be declared
+     annulled. In France, on the other hand, even during the 18th
+     century, nearly all loans were made in the form of
+     _rent-purchase_ (_Law_, Trade and Money, 127), and the
+     creditor could declare the contract void only in case the
+     debtor did not pay him the rent. (_Warnk�nig_, Franz. R. G.,
+     II, 585 ff.) For strictly Catholic countries, the prohibition
+     relating to the taking of interest still really remains.
+     However, _Leo X.'s_ bull, Inter multiplices, exempts the
+     so-called _monti di piet�_, and by this means put obstacles
+     in the way of saving, and promoted real usury. Of this last,
+     _Niebuhr_, Briefe, II, 399, adduces very striking instances
+     from the Pope's own temporal dominion. In the case of
+     pledge, even 12 per cent. per annum is required. (Rom im
+     Jahr, 1833, 163.) Yet, in 1830, the Poenitentiaria Romana
+     instructed the clergy, without, however, deciding the chief
+     question, not to disquiet people any longer in the
+     confessional who had taken interest. (_Guillaumin_,
+     Dictionnaire de l'Economie politique, art. usure.) On the
+     Russian Sect, _Staroverzen_, which still condemns the taking
+     of interest, see _Storch_, Handbuch, II, 19. By the Russian
+     government it was permitted very early. _Ewers_, �ltestes
+     Recht der R., 323 seq.]
+
+     [Footnote 191-10: The first scientific defense of interest
+     is generally considered to be that of _Salmasius_, loc. cit.
+     Yet _Bacon_, Sermones fideles, C. 39 (after 1539), and at
+     bottom also _H. Grotius_, De Jure Belli et Pacis, 1626,
+     taught that it was lawful to take interest in so far as it
+     was not against the love due to one's neighbor (_Endemann_,
+     loc. cit., I, 62 ff.), and _Besold_, Quaestiones aliquot de
+     Usuris, 1598, was as near the truth as _Salmasius_. Compare
+     _supra_, note 4. How earnestly _North_ and _Locke_ labored
+     against the lowering of interest by governmental
+     interference, see _Roscher_, Z. Gesch. der engl.
+     Volkswirths., 90, 102 ff. The best writers, in strictly
+     Catholic countries, did violence to themselves in this
+     matter for a long time after. Thus _Galiani_, Della Moneta,
+     II, I seq.; and one cannot help being greatly surprised at
+     witnessing the subtleties which _Turgot_, M�moire sur le
+     Pr�t d'Argent, 1769, had to have recourse to, to prove the
+     clearest matters. Thus: at the moment of the loan, a sum of
+     money is exchanged against the mere promise of the other
+     party, which is certainly less valuable. [If it were not,
+     why should he borrow?] This difference must, therefore, be
+     made up in interest, etc. _Mirabeau_ even was a decided
+     opponent of interest. (Philos. rurale, ch. 6.) Compare,
+     however, the theological defense by _Viaixnes_, 1728, in the
+     Trait� des Pr�ts de Commerce, Amsterdam, 1759, IV, 19 ff.]
+
+     [Footnote 191-11: Of course, evaded in a thousand ways in
+     practical life. Thus, for instance, people gave wheat, other
+     commodities, and even uncoined gold and silver as loans, and
+     had what interest they pleased promised them. In alienating
+     the capital, they might stipulate _� fonds perdu_, as they
+     thought best. (Turgot, I, c. � 29.) When debtors had
+     promised under oath to make no complaint, the church ordered
+     that they should be helped officially. When the temporal
+     power showed itself lax, Alexander III. decreed that such
+     questions should be brought before the spiritual courts.
+     (Decret. Greg. V., tit. 19; 13 _Innocent_, Epist., VIII, 16;
+     X, 61.) In England, _Richard of Cornwall_ obtained a
+     monopoly of the whole loaning business. (_Matth. Paris_, ed.
+     1694, 639: compare, also, 20 Henry III., 5.), from which
+     fact the existence of the custom of taking interest about
+     1235, is apparent. Cases in which English kings borrowed and
+     promised payment back _cum damnis, expensis et interesse:_
+     Anderson, Origin of Commerce, a. 1274, 1339.]
+
+     [Footnote 191-12: Compare _Gioja_, Nuovo Prospetto, III,
+     190. The canon law desired to put an interdict on their
+     taking interest also: Decret. Greg., V, tit. 19, 12, 18.
+     Frequently, also, a minimum of interest was provided for
+     them: Ordonnances de la Fr., L. 53 seq. II, 575. Receuil des
+     anciennes, Lois, I, 149, 152. John of France extended this
+     to four _deniers_ per _livre_ per week, that is, annually
+     86-2/3 per cent.! (_J. B. Say_, Trait� II, ch. 8.) In
+     Austria, in 1244, 174 per cent. allowed! (_Rizy_, Ueber
+     Zinstaxen und Wuchergesetze, 1859, 72 ff.)]
+
+
+SECTION CXCII.
+
+INTEREST-POLICY.--GOVERNMENT INTERFERENCE.--FIXED RATES.
+
+Instead of the medieval prohibition of interest, most modern states have
+established fixed rates of interest, the exceeding or evasion of which,
+by contract or otherwise, is declared null and void, and is usually
+punishable as usury.[192-1] If the fixing of the rate is intended to
+depress the rate of interest customary in the country,[192-2] [192-3] it
+uniformly fails of its object. If control were great enough, vigilant
+and rigid enough, which is scarcely imaginable, to prevent all
+violations of the law, it is certain that less capital would be loaned
+than had been, for the reason that every owner of capital would be
+largely interested in employing his capital in production of his own.
+More capital, too, would go into foreign parts, and there would be less
+saved by those not engaged in any enterprise of their own. All of this
+would happen to the undoubted prejudice of the nation's entire
+economy.[192-4] [192-5]
+
+If, on the other hand, the control by the government be not great
+enough, the law would, in most cases, be evaded; especially as each
+party, creditor as well as debtor, would find it to his advantage to
+evade it. The latter, who otherwise would not be able to borrow at all,
+is, as a rule, more in need of obtaining the loan, than the creditor is
+to invest his capital. How easily, therefore, might he be induced to
+bind himself by oath or by word of honor![192-6] He would, moreover, be
+compelled to pay the creditor not only the natural interest and the
+ordinary insurance premium, but also for the special risk he runs when
+he violates the law threatening him with a severe penalty.[192-7] Hence
+the last result is either a material enhancement of the difficulty of
+obtaining loans or an enhancement of the rate of interest.[192-8]
+
+     [Footnote 192-1: This is, historically, the second meaning
+     of the word usury, while in the middle ages, for instance in
+     England, under Elizabeth (_D. Hume_), the taking of any
+     interest whatever was called usury. Science should employ
+     this word only in the sense used in � 113.]
+
+     [Footnote 192-2: In Switzerland, at the end of the 17th
+     century, not only were those punished who took more interest
+     than the law prescribed, but those who took less. (Compare
+     Rechtsquellen von Basel, Stadt und Land, 1865, Bd. II.)]
+
+     [Footnote 192-3: Fixed rates of interest of this kind are to
+     be accounted for in part by a still continuing aversion of
+     the legislator for interest in general; in part, by the
+     opinion which prevails that precisely the most useful and
+     most productive classes might be elevated by an artificial
+     lowness of the rate of interest. (But most especially the
+     government itself, which borrows more than it lends.) When
+     Louis XIV. about 1665, lowered the rate of interest to 5 per
+     cent., he claimed in the preamble to his decree that it
+     would have the effect of promoting the welfare of landowners
+     and business men, and of preventing idleness. Similarly
+     _Sully_, Economies royales, L, XII. And so _J. Child_,
+     Discourse of Trade, 69 ff., says that every lowering of the
+     rate of interest, by law, produced a completely
+     corresponding increase of the national wealth. He says,
+     since the first reduction (?) of interest in 1545, the
+     national wealth increased six fold; since the last, in 1651,
+     the number of coaches increased a hundred fold;
+     chamber-maids wore now better clothes than ladies formerly;
+     on 'Change there were more persons with a fortune of �10,000
+     than before with �1,000. Similarly _Culpeper_: compare
+     _Roscher_, Z. Geschichte der eng. Volkswirthsch., 57 ff.
+     Later, the French generally thought that a lowering of the
+     rate of interest would prove injurious to the _noblesse de
+     la robe_; hence even in 1634, parliament was opposed to it.
+     (_Forbonnais_, Recherches et Consid�rations, I, 48, 226.)
+     _Darjes_ says that information of all loans of capital
+     should be made to the police authorities, and that the
+     authorities might compel payment and the loaning of the
+     principal over again to parties in need of capital. (Erste
+     Gr�nde, 426 seq.) Something analogous practically provided
+     for by the W�rtemberg _Landesordnungen_ of the 16th century.
+     (Compare also _von Schr�der_, F. Schatz- und Rentkammer,
+     XXV, 3.)]
+
+     [Footnote 192-4: Precisely a high rate of interest is a
+     powerful incentive to saving, and to the importation of
+     capital.]
+
+     [Footnote 192-5: _Usurae palliatae_, interest taken out of
+     the capital, or stem-interest, called also money-usury in
+     contradistinction to patent interest-usury. To this category
+     belong the written acknowledgments of indebtedness to a
+     larger amount than that actually received; acknowledging it
+     in a higher kind of money than that in which the loan was
+     made; the compulsory taking by the debtor of commodities at
+     a disproportionately high price, in the place of money, or
+     at a disproportionately low one, by the creditor. See the
+     enumeration of such things in the police regulations of the
+     empire, 1530, art. 26, and 1548, art. 17. Thus, in Paris,
+     jewels are "sold" to students hard-pressed for money, which
+     immediately find their way to the _monts de pi�t�_, and have
+     to be paid for some time after to the usurious "seller," at
+     a most exorbitant price. The person who loans $100 at 6 per
+     cent., and retains the interest for the next following year
+     from the date of the loan, takes in reality nearly 6.4 per
+     cent. Fraudulent accessory expenses of all kinds, _faux
+     frais_, expenses of registration, for prolongation, and
+     extinguishment, etc. Here belong, also, the provisions
+     introduced into contracts to make redemption more difficult,
+     the fixing of terms of payment in such a manner that the
+     debtor is almost forced to let them slip by--called "usury
+     in the conditions" in Austria. Remarkable instances from the
+     16th century in _Vasco_, Usura libera, � 57 ff. Recently,
+     _Braun_ und _Wirth_, Die Zinswuchergesetze, 1856, 190 ff. In
+     view of the manifold business transactions behind which the
+     interest-usurer may take refuge, the complete prevention of
+     the latter would break the legs of commerce (loc. cit., 145
+     ff.).]
+
+     [Footnote 192-6: If the state, by annulling such promises,
+     should incite the people to violate them, it would be a
+     frightful step towards the demoralization of the nation:
+     "thus rewarding men for obtaining the property of others by
+     false promises, and then, not only refusing payment, but
+     invoking legal penalties on those who have helped them in
+     their need." (_J. S. Mill_, Principles, V, ch. 10, 2.)
+     Besides, the Austrian usury law of 1803 punishes the
+     borrower also as a spendthrift, and imprisons him for six
+     months (� 18), or else it designates where he shall make his
+     domicile (_Ortsverweisung_). Modern loaning on drafts and
+     bills of exchange, the acceptance of which is forged with
+     the knowledge of the creditor, corresponds to what
+     _Plutarch_, Quaest., Gr., 53, relates of the Cretans, who
+     had, especially in later times, the worst possible
+     reputation for avarice and dishonesty. (_Polyb._, VI, 46.
+     _Paul_ to Titus, I, 12.)]
+
+     [Footnote 192-7: He must insure him against the usury laws.
+     (_Adam Smith._) According to _Krug_, Staats�konomie, the
+     usury laws should be called so because they promote usury,
+     not because they prevent it. Compare to some extent,
+     _Montesquieu_, Esprit des Lois, XXII, 18 ff.]
+
+     [Footnote 192-8: When Catherine II. reduced the rate of
+     interest in Livonia, in 1785, from 6 to 5 per cent., it soon
+     became impossible, even on the best security, to borrow at
+     less than 7 per cent. (_Storch_, Handbuch, II, 26.) And so,
+     when in New York, in 1717, the rate of interest was reduced
+     to 6 per cent., it became necessary, the following year, to
+     raise it again to 8 per cent. The merchants, themselves,
+     petitioned that it might be so raised, because they found it
+     impossible to get any loans whatever. (_Ebeling_, Geschichte
+     und Erdbeschreib. von Nord Amerika, III, 152.) In Chili, the
+     legal rate of interest is 6 per cent., the actual rate,
+     however, never under 12 per cent., and frequently 18 to 24
+     per cent. In Peru, on the other hand, the repeal of the
+     usury laws rapidly reduced the rate of interest from 50 to
+     24 per cent., and finally to 12. (_P�ppig_, I, 118.)]
+
+
+SECTION CXCIII.
+
+INTEREST-POLICY.--EFFORTS TO AVOID THE EVIL EFFECTS OF A FIXED RATE.
+
+It has been thought possible to avoid the evil effects of a fixed legal
+rate of interest, by regulating it in such a way as to make it
+coincident with the rate customary in the country.[193-1] But there are
+numberless transactions in which an insurance premium, or premium for
+risk or certain expenses of administration[193-2] on the part of the
+loaner is inseparable from the true interest. Here, even the law which
+entered most into detail could never properly provide for the infinite
+gradations or shades of risk and trouble; and the rate in a great many
+transactions would, therefore, be placed below the natural height.
+Turgot long since observed that the value of a promise of future payment
+is different not only for different persons, but at different times.
+Thus, for instance, it is really less after there have been numerous
+cases of bankruptcy than at other times.[193-3] If, now, it was desired
+to fix the maximum rate of interest in such a way that it should equal
+the rate customary in the country, where the security is good, the best
+real property security for instance, the consequence would be, that
+those persons who had no such guaranty to offer (leaving the loaning
+"among brothers" out of the question) would either be unable to borrow
+money at all, or, by evading the law, only at an artificially higher
+rate. Hence the legislator causes injury where he wished to favor. This
+has been observed in England in almost all past commercial
+crises.[193-4] The man who makes it his business to loan his capital, on
+short time and in small sums, undertakes a trade which the examination,
+and the surveillance of a large number of small debtors, and the
+necessity of reinvesting the many small sums paid him, render
+exceedingly troublesome and disagreeable. Moreover, in loaning on short
+terms of payment, there is always danger that his money may lie idle for
+some length of time. These are reasons sufficient, why, in such cases,
+when the whole compensation is denominated interest, a rate of interest
+greater than usual in the country is equitable and even necessary. (�
+179.)[193-5]
+
+It has been frequently suggested that spendthrifts and adventurers
+should be hindered using, or to speak more correctly, abusing the
+nation's wealth by laws prohibiting the rate of interest at which they
+might be expected to obtain credit; and this in the interest alike of
+the creditors they might possibly find and in their own.[193-6] But
+almost every inventor of genius, from Columbus to Stephenson, has been
+obliged to be considered "an adventurer" for a time by "solid men." The
+law limits him thus, and more especially during the critical period of
+outlay which precedes the undoubted triumph of his idea, to his own
+means or the gifts of others.[193-7] And how inadequate, as rule, are
+both. The rich are as seldom discoverers, as discoverers are skillful
+supplicants. And, as regards spendthrifts, they may ruin themselves in
+so many thousands of ways, especially by buying or selling, and
+unhindered by the state, that it is scarcely apparent why the one way of
+borrowing should be legally closed to them.[193-8] How is it, if the law
+itself drives them into the hands of a worse class of creditors, and
+compels them to pay yet a higher rate of interest? Are they not simply
+more rapidly ruined? States, themselves, have scarcely ever given any
+heed to their own usury laws in borrowing or loaning.[193-9]
+
+     [Footnote 193-1: In Austria, in 1803, in loaning on pledge,
+     4 per cent.; in other loans and in the trade of merchants
+     with one another, 6 per cent. In France, since 1807, with
+     merchants, 6 per cent.; with others, 5. _Salmasins_, De Mono
+     Usur., c. 1, advises that the maximum should be fixed as
+     high as that usual in the most unfavorable cases. The
+     reduction from such rate, where possible, would regulate
+     itself.]
+
+     [Footnote 193-2: _Petty_, Quantulumcunque concerning money,
+     1682.]
+
+     [Footnote 193-3: Sur le Pr�t d'Argent, � 36.]
+
+     [Footnote 193-4: How many merchants would have avoided
+     bankruptcy here if they had been allowed to borrow at 8 per
+     cent.! The established rate of 5 per cent. was certainly too
+     low, considering the great demand for capital and the want
+     of confidence at the moment, to permit capital to be loaned
+     at that rate. Many saw themselves compelled to sell their
+     merchandise or evidences of state indebtedness at a loss of
+     30 per cent., in order to meet their obligations. But the
+     person who, to anticipate the receipts due in 6 months, for
+     instance, consents to suffer a loss of 30 per cent., pays,
+     in a certain sense, interest at the rate of 60 per cent. a
+     year. Compare _Tooke_, Considerations on the State of the
+     Currency, 60, and History of Prices, II, 163, on the Crisis
+     of 1825-26. Since the Bank, least of all, could exceed the
+     legal rate of interest, numberless applications were made to
+     it in times of war in order to obtain the difference between
+     the legal rate and the rate usual in the country.
+     (_Thornton_, Paper Credit of Great Britain, ch. 10.)
+     Prussia, November 27, 1857, suspended the usury laws for 3
+     months, on account of the commercial crisis, except the
+     provisions relating to pawn-broker and minors.]
+
+     [Footnote 193-5: _Turgot_ tells of Parisian "usurers" who
+     made weekly advances to the market women of la Halle, and
+     received for 3 livres, 2 sous interest; that is 173 per
+     cent. a year. The premium for insurance may have been very
+     high here. When such loaners were brought before the courts,
+     and they were sentenced to the galleys, the usual punishment
+     for usury, their debtors came and testified their gratitude
+     by begging for mercy to them! (M�moire sur le Pr�t d'Argent,
+     � 14, 31.) Compare _Cantillon_, Nature du Commerce, 276.]
+
+     [Footnote 193-6: Thus, _Adam Smith_, Wealth of Nations, II,
+     ch. 4. Similarly, _Roesler_ Grunds�tze, 495 ff. Compare,
+     _per contra_, _Jer. Bentham_, Defense of Usury: showing the
+     Impolicy of the present legal Restraints on the Terms of
+     pecuniary Bargains in Letters to a Friend. To which is added
+     a Letter to Adam Smith on the Discouragement imposed by the
+     above Restraints to the Progress of inventive Industry,
+     1787; 3 ed., 1816.]
+
+     [Footnote 193-7: The first steamboat in the United States
+     was, for a long time, called the "Fulton-folly!"]
+
+     [Footnote 193-8: It is just as hard to see why only
+     money-capital should have a fixed rate of interest, and not
+     buildings, etc. likewise.]
+
+     [Footnote 193-9: In Holland, the legal rate of interest was
+     lowered, in 1640, to 5 per cent., and in 1655 to 4; but not
+     since. (_Sir J. Child_, Discourse of Trade, 151.) Besides,
+     _Locke_, Considerations on the Lowering of Interest, Works,
+     III, 34, assures us that, in his time, a man in England
+     could make contracts for unlimited interest.]
+
+
+SECTION CXCIV.
+
+INTEREST-POLICY.--REPEAL OF THE USURY LAWS.
+
+However, the complete repeal of the usury laws[194-1] has not under all
+circumstances accomplished what it was supposed it would; and the state
+should take great care, lest by an incautious framing of its laws, it
+should put judges in such a position that they may be compelled to
+co�perate in the execution of immoral contracts.[194-2] In the lowest
+strata, so to speak, of the loaning business, the medieval condition
+continues to exist (� 190) after it has disappeared in the upper. Here,
+the loan is effected scarcely ever for the purposes of production, but
+most generally because of the most urgent necessity; and the debtor is
+not in a condition, from want of education, and especially from his
+ignorance of arithmetic, to estimate the magnitude of the burthen he has
+undertaken. The business of loaning is, under such circumstances,
+considered dishonorable, to some extent, by the public. And when a
+business necessary in itself is held disreputable by public opinion, the
+usual result is that bad men alone engage in it.[194-3] Real competition
+which would but fix the natural price is wanting here in proportion as
+the debtor is anxious for secrecy.[194-4]
+
+Abuses in this respect are best guarded against by the establishment of
+government loan-institutions, and by the publicity of the administration
+of justice to debtors.[194-5] Besides, every contract might be
+prohibited the terms of which were such that an inexperienced borrower
+could not from them obtain a clear conception of the burthen he accepts,
+or which hindered him from paying the debt at a proper time.[194-6]
+
+Lastly, there should be a rate of legal interest fixed by the state to
+be charged in such cases as interest is found to be in justice due, but
+in which none is provided for by contract; and this rate should
+approximate as nearly as possible to the rate usual in the
+country.[194-7] [194-8]
+
+     [Footnote 194-1: In 1787, Joseph II. abolished the penalties
+     for usury, but allowed the provisions denying a legal
+     remedy, in cases of usurious demand of over 4 per cent. for
+     hypothecations, 6 per cent. for bills and 5 per cent. for
+     other loans, to remain. Compare the prize essay by
+     _G�nther_, Versuch einer vollst�ndigen Untersuchung �ber
+     Wucher und Wuchergesetze, 1790; _v. Kees_, �ber die
+     Aufhebung der Wuchergesetze, 1791; _Vasco_, Usura libera,
+     1792. The opposite view represented by _Ortes_, E. N., II,
+     24, and _v. Sonnenfels_, Ueber Wucher und Wuchergesetze,
+     1789, and zu Herrn _von Kees_, Abhandlung, etc., 1791. The
+     debates on the repeal of the usury laws in the French
+     Chamber of Deputies, after which _Lherbette's_ motion in
+     favor of their repeal was rejected. In France they were,
+     during the assignat-period of bewilderment virtually, and in
+     1804-1807 expressly (C. C., Art. 1907), but only
+     provisionally repealed. In W�rtemberg, all those having the
+     right to draw bills of exchange were exempted from them in
+     1839. Since the law of 1848, governing bills of exchange,
+     gave all persons capable of contracting, the right to draw
+     bills of exchange, the usury laws have ceased to have any
+     existence; without much noise before and without much
+     complaint after. (A. Allgem. Ztg., 24 M�rz, 1857.) Recent
+     complete or partial repeal of the usury laws: in England, in
+     1854; in Denmark, in 1855; in Spain, in 1856; Sardinia,
+     Holland, Norway and Geneva, 1857; Oldenburg, 1858; Bremen,
+     1859; in the kingdoms of Saxony and Sweden, in 1864;
+     Belgium, 1865; Prussia, the North German Confederation, and
+     to some extent Austria, in 1867.]
+
+     [Footnote 194-2: Compare _F. X. Funck_, Zins und Wucher,
+     1868, a moral theological treatise which rightly demands a
+     more rigid popular morality in relation to real usury, after
+     the repeal of the usury laws. The recent cases in which
+     courts have juridically acquitted usurers because they could
+     not do otherwise, but have branded them morally, are of very
+     questionable propriety, in view of the facility with which
+     high and usurious rates of interest may be confounded. _R.
+     Meyer_, Emancipationskampf, I, 78, advises that the
+     capitalist be allowed to ask whatever interest he wishes,
+     but that the state, as judge and executor of the laws,
+     should enforce payment only at a certain rate determined by
+     law.]
+
+     [Footnote 194-3: Many laws seem to purposely permit this,
+     inasmuch as they allow a rate of interest, higher in
+     proportion as the position of the creditor is less
+     respectable. Thus, formerly, in some places, the Jews might
+     require higher interest than the Christians. Justinian
+     allows _personis illustribus_ only 4 per cent.; ordinary
+     private persons, 6 per cent.; money-changers, etc., 8 per
+     cent. (L. 26, Cod. IV, 32.) On the other hand, according to
+     the Indian legislation of Menu, the Brahman is obliged to
+     confine himself to 2, the warrior to 3, the _vaysya_ to 4,
+     the _sudra_ to 5 per cent. per month at most. (Cap. 8.)]
+
+     [Footnote 194-4: _Turgot_ considered that only the _pr�teurs
+     � la petite semaine_, pawnbrokers who loaned to hard-pressed
+     people on the confines of the middle class and artisans, and
+     the infamous characters who advanced money to the sons of
+     rich men to spend in dissipation, still passed for usurers.
+     Only the latter are injurious; not, however, because of the
+     high rate of interest they charge, but because they help in
+     a bad cause. (Sur le Pr�t d'Argent, � 32.) According to
+     _Colquhoun_, Police of the Metropolis, 167, there are women
+     in London from whom the hucksteresses borrow 5 shillings
+     every day and return them every evening with 1/2 shilling
+     interest. Something analogous happens much more frequently
+     in the country, especially in the loaning in kind of
+     productive capital to poor persons. Thus, in Tessin, there
+     are many "iron cattle" which the borrower is obliged to
+     return at their original value, plus an interest of about 36
+     per cent. (_Franscini_, C. Tessin, 152.) On the Rhine,
+     frequently as much as 200 per cent. a year, is stipulated
+     for in such contracts. _Morstadt_, der N. Oekonom. Heft., IX,
+     727.]
+
+     [Footnote 194-5: Compare _J. J. Becher_, Polit. Discurs,
+     1668, 219; _v. Schr�der_, F. Schatz- und Rentkammer, Bd. ��
+     123, 133 ff. The first _montes pictatis_ were expressly
+     intended to check the usury of the Jews. Thus, in Florence,
+     in 1495, after the expulsion of the Jews, voluntary
+     contributions were made to found a municipal loaning
+     establishment. Similarly, _Tiberius_, Tacit. Ann., VI, 16
+     seq. _Count Soden_, Nat-Oek., IV, 57; V, 319, advises that
+     all contracts for interest should be recorded in a public
+     registry, under pain of their being held not actionable.]
+
+     [Footnote 194-6: _G�nther_, loc. cit., thinks that, in every
+     contract in which the rate of interest is masked, its real
+     rate should be expressed under penalty of invalidity. In
+     addition to this, he would have those who have attained
+     their majority put in full control of their fortune only
+     after they had undergone an examination.
+
+     It seems opportune that the old prohibition against interest
+     on interest (_Cicero_, ad. Att., V, 21, and L, 26, Digest,
+     XIV, 6) and the provision that the interest should not be
+     permitted to be greater than the _alterum tantum_ (Digest,
+     l. c.) should be permitted to continue. (Digest, l. c.) Both
+     of these measures were first decreed by Lucullus, for the
+     protection of Asia Minor. Compare � 115. Florentine law, of
+     1693, that interest in arrears, or that interest on interest
+     beyond 7 years, should not be added to the principal without
+     an express contract to that effect. (_Vasco_, Usura libera,
+     � 155.) In England, the usury laws were by 2 and 3 Victor.,
+     c. 37, repealed, but only to the extent of excepting from
+     their provisions bills of not over 12 months, and money
+     loans not over �10. Compare _Rau_, Lehrbuch II, � 323.]
+
+     [Footnote 194-7: Compare _Locke_, Considerations: Works, 10,
+     32 ff. In Spain, the Council of State is required to
+     regulate the rate of legal interest yearly (law of 1856,
+     art. 8); a thing which, according to _Braun_, would be
+     better done in each individual case by the judges
+     themselves. (_Faucher's_ Vierteljahrsschrift, 1868, II,
+     13.)]
+
+     [Footnote 194-8: In Athens, the rate of interest in general
+     was voluntary from the time of Solon, who, however, did away
+     with slavery for debt. (Lysias adv. Theomn., 360.) Yet there
+     was a legal rate of interest of 18 per cent. for the case in
+     which a divorced husband delayed the return of his wife's
+     dowry. Compare _B�ckh_, Staatshaushalt der Athener, I, 148.]
+
+
+
+
+CHAPTER V.
+
+THE UNDERTAKER'S PROFIT. (_UNTERNEHMERLOHN._)
+
+
+SECTION CXCV.
+
+THE REWARD OF ENTERPRISE.
+
+The essence of an enterprise or undertaking, in the politico-economical
+sense of the word, consists in this, that the undertaking party engages
+in production for the purpose of commerce, at his own risk. In the
+earlier stages of a nation's economy, the production of consumers is,
+naturally enough, limited chiefly by their own personal wants. Somewhat
+later, when the division of labor has been further developed, the
+workman produces at first, enough to meet occasional determinate
+"orders;" and still later to meet them regularly and as a business.
+Later yet, and in stages of civilization yet higher, especially when the
+freedom of labor constantly grows, as it is wont to, here, and the
+freedom of capital and trade becomes more extensive, enterprise plays a
+part which grows more important as time rolls on, and is usually carried
+on more at one's own risk.[195-1] This transition is a great advance,
+inasmuch as the advantages of the co�peration of labor and of _use_ may
+be utilized in a much higher degree by undertakers (_Unternehmer_) than
+by producers who labor only to satisfy their own household wants, or to
+meet "orders" already made. The awakening of latent wants, a matter of
+the utmost importance to a people who would advance in civilization, is
+something which can enter into the mind only of a man endowed with the
+spirit of enterprise (an undertaker).[195-2]
+
+While most English political economists have confounded the personal
+gain of the undertaker with the interest on the capital used by
+him,[195-3] many German writers have called the "undertaker's earnings"
+or profit a special, and fourth, branch of the national income,
+co�rdinate with rent, wages, and the interest on capital.[195-4] Yet,
+the net income of every undertaker is either the fruit of his own land
+used for purposes of production and of his capital, in which case it is
+subject to the usual laws of development of rent and interest; or, it
+must be considered as wages paid for his labor.[195-5] These wages he
+earns, as a rule, by organizing and inspecting the work, calculating the
+chances of the whole enterprise; frequently by, at the same time,
+keeping the books and acting as cashier; and, in the case of small
+undertakings, as a common fellow-workman. (Tradesman, peasant). In every
+case, however, even when he puts an agent paid by himself in his place,
+he earns these wages from the fact that his name keeps the whole
+enterprise together; and for the reason that, in the last
+instance,[195-6] he has to bear the care and responsibility attending
+it.[195-7] When a business goes wrong, the salaried director or foreman
+may permit himself to be called on to engage in another; but the weary,
+watchful nights belong to the undertaker or man of enterprise, alone;
+and "how productive such nights frequently are!"[195-8]
+
+This profit of the undertaker is subject essentially to the same natural
+law as wages in general are; only it differs in this from all other
+branches of income, that it can never be stipulated for in advance.
+Rather does it consist of the surplus which the product of the
+undertaking affords over and above all the rent stipulated for in
+advance or estimated at the rate usual in the country, the interest on
+capital, and wages of common labor.[195-9]
+
+     [Footnote 195-1: At first, usually imperfect enterprises in
+     which the shop-instruments, etc., are kept ready for present
+     orders; and then complete or perfect enterprises. (_v.
+     Mangoldt_, Volkswirthschaftslehre, 255.)]
+
+     [Footnote 195-2: _v. Mangoldt_, Lehre vom Unternehmergewinn,
+     1855, 49 ff. The same author shows, in his
+     Volkswirthschaftslehre, that it is better for the general
+     good that the risk should be borne by the producer than by
+     the consumer. In the case of the taking of orders, there is
+     danger only of a technic failure, but in enterprise proper,
+     there is possible also an economic miscarriage of the work,
+     even when successful from a technic point of view. But in
+     the case of the undertaker (man of enterprise),
+     responsibility is much more of an incentive, production much
+     more steady, and therefore much better able to exhaust all
+     means of help. Consumers are much more certain in their
+     steps, as regards price, etc., since they find what they
+     want ready made.]
+
+     [Footnote 195-3: Thus _John Stuart Mill_, Principles, II,
+     ch. 15, 4, teaches with a certain amount of emphasis that
+     the "gross profits of stock" are different not so much in
+     the different branches in which capital is employed, as
+     according to the personal capacity of the capitalist himself
+     or of his agents. There are scarcely two producers who
+     produce at precisely the same cost, even when their products
+     are equal in quality, and equally cheap. Nor are there two
+     who turn over their capital in precisely the same time.
+     These "gross profits" uniformly fall into three classes:
+     reward for abstinence, indemnity for risk, remuneration for
+     the labor and skill required for superintendence. _Mill_
+     complains that there is in English no expression
+     corresponding to the French _profit de l'entrepreneur_. [The
+     translator has taken the liberty to use the expression
+     "undertaker's profit," for what the French call the _profit
+     de l'entrepreneur_, and the Germans _Unternehmerlohn_, spite
+     of its funereal associations, and because Mill himself
+     employed it, although he recognized that it was not in good
+     usage.--TR.] (II, ch. 15, 1) _Adam Smith_ had the true
+     doctrine in germ (Wealth of Nat., I, ch. 6), but those who
+     came after him did little to develop it. Compare _Ricardo_,
+     Principles, ch. 6. 21. _Read_, Political Economy, 1829, 262
+     ff., and _Senior_, Outlines, 130 seq., were the first to
+     divide profit into two parts: interest-rent (_Zinsrente_)
+     and industrial gain. Similarly, _Sismondi_, N. P., IV, ch.
+     6. According to _A. Walker_, Science of Wealth, 1867, 253,
+     285, "profits are wages received by the employer."]
+
+     [Footnote 195-4: _Hufeland_, Grundlegung, I, 290 ff.;
+     _Sch�n_, Nat-Oek., 87, 112 ff.; _Riedel_, Nat-Oek., II, 7 ff.;
+     _von Th�nen_, Der isolirte Staat, II, 1 80 ff.; _v.
+     Mangoldt_, Unternehmergewinn, 34 ff. The latter divides the
+     undertaker's profit (_profit de l'entrepreneur_) into the
+     following parts:
+
+     A. Indemnity for risk. If this be only an indemnity exactly
+     corresponding to the risk, it cannot be looked upon at all
+     as net income, but only as an indemnification for capital.
+     If individual undertakers, favored by fortune, receive a
+     much larger indemnification than is necessary to cover their
+     losses, such indemnification is not income either, but an
+     extraordinary profit not unlike a lottery-gain, unless it be
+     called, perhaps, the reward of extraordinary courage
+     (_Eiselen_), i. e., wages. If, lastly, the indemnity is
+     uniformly somewhat larger than the risk, in order to
+     compensate for the continual feeling that one is running a
+     risk, it must be remembered that all remuneration for
+     present sacrifice, made directly for the sake of production,
+     is wont to be embraced under the name of wages.
+
+     B. Wages and interest for the labor and capital utilized
+     only in one's own production, and which cannot be let. _v.
+     Mangoldt_ himself admits, that, in the long run, only
+     certain qualified labor belongs to this category.
+
+     C. Undertaker's rent (_Unternekmerrente_) depending on the
+     rarity of undertakers (men of enterprise) compared with the
+     demand. This, therefore, is not a third component part, but
+     only one which adds to the other two, _Storch_, Handbuch, I,
+     180, and _Rau_, Lehrbuch, I, � 237 ff., consider the profit
+     of the undertaker as an admixture of wages and interest.
+     Professor _J. Miscszewicz_ has given expression to an
+     interesting thought in opposition to myself: that credit is
+     a fourth factor of production (natural forces, labor and
+     capital being the other three) produced by the three older
+     factors, as capital by the two oldest. The undertaker's
+     profit he then considers the product of this fourth factor,
+     corresponding to rent, interest and wages.]
+
+     [Footnote 195-5: Compare _Canard_, Principes, ch. 3; _J. B.
+     Say_, Trait�, II, ch. 7, Cours pratique, V, 1-2, 7-9,
+     distinguishes three branches of income: rent, interest and
+     the profits of industry; and he divides the latter again
+     into the profits of the _savant_, the undertaker and
+     workmen, (_v. Jacob_, Grunds�tze der Nat.-Oek., � 292;
+     _Lotz_, Handbuch, I, 471; _Schmalz_,
+     Staatswirthschaftslehre, I, 116; _Nebenius_, Oeff. Credit,
+     I, Aufl., 466.)]
+
+     [Footnote 195-6: I need only call attention to the influence
+     that the mere name of a general sometimes exerts over the
+     achievements and sometimes even over the composition of his
+     army (Wallenstein!); and how important it sometimes is to
+     keep his death a secret. And so the mere name of a minister
+     of finance may facilitate loans, etc.]
+
+     [Footnote 195-7: It is sufficient to mention the different
+     positions occupied by the shareholders and preferred
+     creditors of a joint-stock company.]
+
+     [Footnote 195-8: Compare _von Th�nen's_ Isolirter Statt, II,
+     80 ff., and his Life, 1868, 96. _Meister muss sich immer
+     plagen!_ (_Schiller._) See a long catalogue of books on the
+     position of the undertaker in the principal different
+     branches of industry in _Steinlein_, Handbuch der
+     Volkswirthschaftslehre, I, 445 ff.]
+
+     [Footnote 195-9: _Tanti�mes_ occupy a middle place between
+     wages and the undertaker's profit; dividends a middle place
+     between undertaker's profit and the interest of capital. On
+     this is based _Rodbertus's_ view, that an increase of joint
+     stock companies raises _ceteris paribus_ the rate of
+     interest, and an increase of productive associations the
+     rate of wages, for the reason that in each instance, there
+     is some admixture of "undertaker's profit," or reward of
+     enterprise.]
+
+
+SECTION CXCVI.
+
+UNDERTAKER'S PROFIT.--CIRCUMSTANCES ON WHICH IT DEPENDS.
+
+As the wages or reward of labor, in all instances, depends on the
+circumstances mentioned in � 167 ff., so, also does the reward of
+enterprise; in other words, the undertaker's profit or wages. It
+depends, therefore:
+
+A. On the rarity of the personal qualities required in a business, which
+qualities may be divided into technical and ethical qualities. Among the
+latter are, especially, the capacity to inspire capitalists with
+confidence and workmen with love for their task; the administrative
+talent to systematize a great whole made up of men and to order it
+properly, to keep it together by sternness of discipline in which
+pedantry has no part, and by economy with no admixture of avarice; and
+frequently endurance and even presence of mind. These ethical,
+statesmanlike qualities are, take them all in all, a more indispensable
+condition of high undertaker's profit than the technical are.[196-1]
+
+B. On the risk of the undertaking in which not only one's property, but
+one's reputation, may be lost.[196-2]
+
+C. As to the disagreeableness of the undertaking or enterprise, we must
+take into especial consideration the disinclination of capitalists in
+general to assume the care and trouble of concerning themselves directly
+with the employment of their capital. (� 183.) The undertaker's profit
+is, besides, lower in proportion as he needs to care less for the
+profitable application of the different sources of production, and for
+their preservation. Hence it is, in general, higher for the direction of
+circulating than of fixed capital; in speculative trade and in wholesale
+trade which extends to the whole world, than in retail trade and merely
+local business.[196-3]
+
+It has, indeed, been remarked, that the undertaker's profit is, as a
+rule, proportioned to the capital employed.[196-4] This may be true in
+most cases, but only as the accidental compromise between opposing
+forces. It is evident that the greater the enterprise is, the greater
+may be the surplus over and above the compensation stipulated for in
+advance of all the co�perating productive forces, and not only
+absolutely but also relatively. We need only call to mind the successful
+results attending the greater division of labor (� 66) and the greater
+division of use (_Gebrauchstheilung_) (� 207); the greater facility of
+using remains in production on a large scale, and the fact that all
+purchases, and all obtaining of capital are made, when the items are
+large, at cheaper rates, because of the more convenient conducting of
+the business.
+
+This is true up to the point where the magnitude of the whole becomes so
+great as to render the conducting of it difficult. Considered even
+subjectively, the great undertaker, whose name and responsibility keep a
+great many productive forces together, may demand a higher reward,
+because there are so few persons competent to do the same. On the other
+hand, it cannot be denied that a support in keeping with his position
+may be called the amount of the cost of production of the undertaker's
+labor. If this cost is once fixed by custom, it will, of course, be
+relatively high in those branches of business which permit only of the
+employment of a small capital.[196-5]
+
+In the higher stages of civilization, the undertaker's profit has, like
+the rate of interest, a tendency to decline. This decline is, indeed, in
+part, only an apparent one, caused by the decreased risk and the smaller
+indemnity-premium. But it is, in part, a real one, produced by the
+increased competition of undertakers.[196-6] The more intelligent
+landowners and workmen become, the more readily do they acquire the
+capacity and desire to use the productive forces peculiar to them in
+undertakings of their own; and the number of retired persons who live
+from their rents grows smaller with the decline of the rate of interest.
+The strong competition of undertakers now leads to degeneration, and
+undertakings or enterprises become usual in which the gains or losses
+are subjective, and are destitute of all politico-economical
+productiveness; for instance, the purchase of growing fruits, and
+businesses carried on in "margins," or differences. It is self-evident
+that the circumstances which retard the rate of interest, or turn it
+retrograde, would have a similar effect on the undertaker's profit. (�
+186.) On the whole, a rapidly growing people meet with great gains and
+losses, but the preponderance is in favor of the former. A stationary
+people are wont to become more and more careful and cautious. A
+declining people underestimate the chances of loss, although in their
+case they tend more and more to preponderate over the chances of gain.
+(_v. Mangoldt._)
+
+     [Footnote 196-1: Thus _Arkwright_, by his talent for
+     organization principally, attained to royal wealth, while
+     _Hargreaves_, a greater inventive genius, from a technic
+     point of view, had to bear all the hardships of extreme
+     poverty.]
+
+     [Footnote 196-2: An experienced Frenchman, _Godard_,
+     estimates that of 100 industrial enterprises attempted or
+     begun, 20 fail altogether before they have so much as taken
+     root; that from 50 to 60 vegetate for a time in continual
+     danger of failing altogether, and that, at the furthest, 10
+     succeed well, but scarcely with an enduring success.
+     (Enqu�te commerciale de 1834, II, 233.)]
+
+     [Footnote 196-3: Thus _Ganilh_, Th�orie de l'Economie
+     politique I, p. 145, was of the opinion that in France's
+     foreign trade the profit was only 20, and in its internal
+     trade, scarcely 10 per cent. of the value put in
+     circulation.]
+
+     [Footnote 196-4: _Hermann_ loc. cit. 208.]
+
+     [Footnote 196-5: According to _Sinclair_, Grundgesetze des
+     Ackerbaues, 1821, the profit on capital of English farmers
+     was wont to be from 10 to 18 per cent. Only in very
+     remarkable cases, by persons in very favorable
+     circumstances, was from 15 to 20 per cent. earned; that is,
+     on the whole, less than in commerce and industry. In the
+     case of farmers of meadow land, 15 per cent. and even more
+     was not unusual; because there is a need of less outlay
+     here, but more mercantile speculation, especially in the
+     fattening of live stock.
+
+     At the end of the last century English farmers expected 10
+     per cent. profit on their capital. (_A. Young_, View of the
+     Agriculture of Suffolk, 1797, 25.) And so _Senior_ is of
+     opinion that, in the England of to-day, industrial
+     enterprises of �100,000 yield a profit of less than 10 per
+     cent. a year; those of �40,000, at least 12-1/2 per cent.;
+     those of from �10,000 to �20,000, 15 per cent.; smaller ones
+     20 per cent. and even more. He makes mention of fruit
+     hucksters who earned over 20 per cent. a day; that is, over
+     7,000 per cent. a year! (Outlines, 203 seq.) In Manchester,
+     manufacturers, according to the same authority, turned over
+     their capital twice a year at 5 per cent.; retail dealers,
+     three times a year at 3-1/2 per cent. (Ibid, 143.)
+     _Torrens_, The Budget (1844), 108, designates 7 per cent. as
+     the minimum profit which would induce an English capitalist
+     to engage in an enterprise of his own. According to _v.
+     Viebahn_, Statistik des Regierungsbezirks D�sseldorf, 836,
+     I, 180, the undertaker's profit, i. e., the surplus money of
+     the value of the manufactured articles, after deduction made
+     of the raw material and wages, in the Berg country, amounted
+     to, in 81 iron factories, 146,400 thalers; in 6 cotton
+     factories, to 21,200 thalers; in 15 cloth factories, to
+     14,725 thalers; in 4 worsted factories, to 1,700 thalers; in
+     4 brush factories, to 800 thalers; in 2 tobacco factories to
+     10,220 thalers; in 2 paper factories, to 7,400 thalers; on
+     an average, 1,924 thalers; although many undertakers earned
+     only from 200 to 400 thalers, and some few from 5,000 to
+     10,000 thalers.]
+
+     [Footnote 196-6: This is, of course somewhat oppressive to
+     many individuals, and hence we find that in those countries
+     which are unquestionably making great advances in
+     civilization, there are so many complaints of alleged
+     growing impoverishment. Compare _Sam. Fortrey_, England's
+     Interest and Improvement, 1663; _R. Coke_, A Treatise
+     wherein is demonstrated that the Church and State of England
+     are in equal danger with the Trade of it, 1671. Britania
+     languens, showing the Grounds and Reasons of the Increase
+     and Decay of Land, etc., 1680. And per contra, England's
+     great Happiness, wherein is demonstrated that a great Part
+     of our Complaints are causeless, 1677. Analogous claims
+     might be shown to exist in Germany by a collection of almost
+     any number of opinions advanced during the last thirty
+     years.]
+
+
+SECTION CXCVI (_a._).
+
+UNDERTAKER'S PROFIT.--HAVING THE "LEAD."
+
+The undertaker's profit is that branch of the national income in which
+the greater number of new fortunes are made. If a landowner has a large
+income, he generally considers himself obliged to make a correspondingly
+large outlay, one in keeping with his position; and workmen who are not
+undertakers themselves seldom have the means to make large savings.
+Besides, undertakers stand between the purchasers of their products and
+the lessors of the productive forces used by them in the peculiarly
+favorable situation which I may describe by the expression: having, as
+they say in card-playing, "the lead."[196a-1] When, in the struggle for
+prices, one party occupies a position which enables him to observe every
+change of circumstance much sooner than his opponent, the latter may
+always suffer from the effects of erroneous prices. If, for instance,
+the productiveness of business increases, even without any personal
+merit of the individual undertakers themselves, it will always be some
+time before the decline in the price of commodities and the rise in the
+rate of interest take place, as a result of the increased competition of
+undertakers, consequent upon the extraordinary rate of the undertaker's
+profit. It is difficult, and even impossible in most instances for the
+proprietors of the productive forces which they have rented out, to
+immediately estimate accurately the profit made by undertakers. On the
+other hand, the least enhancement of the price of the forces of
+production is immediately felt by the undertakers, and causes them to
+raise their prices. They just as quickly observe a decline of the prices
+of the commodities, and know how to make others bear it by lowering
+wages and the rate of interest.[196a-2] It should not be forgotten that
+the persons most expert, far-seeing, active and expeditious in things
+economic, belong to the undertaking class.[196a-3] [196a-4]
+
+     [Footnote 196a-1: The same principle is effective in
+     intermediate commerce, and in the intervention of bankers
+     between government and state creditors.]
+
+     [Footnote 196a-2: This is much less the case in rents, for
+     the reason that contracts here are made for a much longer
+     term. Hence, here the farmer has as much to fear as to hope
+     from a change of circumstances. Hence, too, we meet with a
+     farmer who has grown rich much more seldom than with a
+     manufacturer or a merchant.]
+
+     [Footnote 196a-3: If an undertaker can cede his higher
+     reward to another and guaranty its continuance, the
+     circumstances which enable him to do this assume the nature
+     of fixed capital; for instance, the trade or _client�le_
+     secured by custom or privilege. If the undertaker has not
+     the power to dispose of it in this way, the increased profit
+     either disappears with his retirement from the business or
+     falls to the owner of the capital employed, and still more
+     to the land owner. Thus, for instance, how frequently it has
+     happened that a store, which has been largely resorted to by
+     the public, drawn thither by the business tact of the
+     lessee, has afterwards been rented by the owner at a higher
+     rent! (_Hermann_, loc. cit. 210.)]
+
+     [Footnote 196a-4: _Lassalle's_ socialistic attacks on
+     Political Economy have been directed mainly against the
+     undertaker's profit or reward. Compare the work
+     "Bastiat-Schulze von Delitzsch, der �konom. Julian oder
+     Kapital und Arbeit," 1863. By means of state credit, he
+     would have this branch of income turned over to common
+     labor. _D�hring_ also, Kapital und Arbeit 90, declaims not
+     so much against capital as against "the absolutism of
+     undertakers." _Sch�ffle_ D. Vierteljahrsschrift Nr. 106, II,
+     223, objects to this, that undertakers give value in
+     exchange to unfinished products, a great service rendered
+     even to the laboring class, who otherwise would have to
+     resign the advantages of the division of labor.
+
+     The undertaker's profit is precisely the part of the great
+     politico-economical tree from which further growth chiefly
+     takes place. To artificially arrest it, therefore, would be
+     to hasten the stationary state, and thus make general and
+     greater the pressure on workmen and capitalists, which it is
+     sought to remove locally. Hence _Roesler_, Grunds�tze, 507
+     ff., very appropriately calls the undertaker's profit the
+     premium paid by society to those who most effectually combat
+     the "law of rent." The importance of a good undertaker may
+     be clearly seen when a joint stock manufacturing company
+     pays a dividend of from 20 to 30 per cent., while one close
+     by, of the same kind, produces no profit whatever. But, at
+     the same time, the socialistic hatred of this branch of
+     income may be easily accounted for, in a time full of
+     stock-jobbing, which last never produces except a
+     pseudo-undertaker's profit.]
+
+
+
+
+CHAPTER VI.
+
+CONCLUDING REMARKS ON THE THREE BRANCHES OF INCOME.
+
+
+SECTION CXCVII.
+
+INFLUENCE OF THE BRANCHES OF INCOME ON THE PRICE OF COMMODITIES.
+
+We have seen, � 106, that the cost of production of a commodity,
+considered from the point of view of individual economy, may be reduced
+to the payment for the use of the requisite productive forces rented or
+loaned to the producer. Hence every great variation in the relation of
+the three branches of income to one another must produce a corresponding
+variation in the price of commodities.[197-1] When, for instance, the
+rate of wages increases because they absorb a larger part of the
+national income, those commodities in the production of which human
+labor, directly employed, is the chief factor, must become dearer as
+compared with others. Whether this difference shall be felt principally
+by the products of nature or of capital (compare � 46 seq.), depends on
+the causes which brought about the enhancement of the rate of wages.
+Thus, a large decrease of population, or emigration on a large scale,
+will usually lower rent as well as the rate of interest;[197-2] an
+extraordinary improvement made in the art of agriculture, only the
+former; and an extraordinary increase of capital, only the latter. The
+usual course of things, namely that the growth of population
+necessitates a heavier draft on the resources of the soil, and thus
+causes rents to go up, and makes labor dear, must have the effect of
+raising the price of the products of labor and of natural forces, as
+compared with the products of capital; and all the more as it causes the
+rate of interest to suffer a positive decline. The products of
+mechanical labor become relatively cheaper; and cheaper in proportion as
+the producing machinery is more durable; therefore in proportion as, in
+the price of the services it renders, mere interest preponderates over
+compensation for its wear and tear.[197-3]
+
+Let us, for a moment, leave ground-rent out of the question entirely,
+and suppose a nation's economy whose production is conducted by eleven
+undertakers employed on different commodities. Let us suppose that
+undertaker No. 1 uses machinery exclusively and employs only as many
+workmen as are strictly necessary to look after it, that undertaker No.
+2 has a somewhat larger number of workmen and a somewhat smaller amount
+of fixed capital, etc.; and that this increase in the number of workmen
+and decrease in the amount of fixed capital continues until we reach
+undertaker No. 11, who employs all his capital in the payment of wages.
+If now, the rate of wages were to rise, and the interest on capital to
+fall in the same proportion, the commodities produced by undertaker No.
+11 would rise most in price, and those of No. 1 decline most. In the
+case of undertaker No. 6, the opposing influences would probably balance
+each other, and if the producers of money belonged to this sixth class,
+it would be very easy to get a view of the whole change in the
+circumstances of production, in the money-price of the different
+commodities.[197-4]
+
+     [Footnote 197-1: Compare _Adam Smith_, I, ch. 7, fin. This
+     relative increase or decrease of one branch of income at the
+     expense or to the advantage of another, should be
+     distinguished from the absolute change of its amount which
+     does not affect the cost of production. Thus, for instance,
+     when the rent of land indeed increases, but in consequence
+     of a simultaneous improvement in agriculture, a decline in
+     the rate of interest, and an enhancement of the price of
+     wheat is avoided (� 157). So, too, when individual wages
+     increase on account of the greater skill and energy of
+     labor, but the same quantity and quality of labor do not
+     become dearer (� 172 seq.); and lastly, when the rate of
+     interest remaining unaltered, the receipts of capitalists
+     are increased by reason of an increase of their capital (�
+     185).]
+
+     [Footnote 197-2: After the great plague in the 14th century
+     in England, when all the products of labor became dearer,
+     skins and wool fell largely in price: _Rogers_, I, � 400.]
+
+     [Footnote 197-3: Anyone who carefully reads all the five
+     divisions of _Ricardo's_ first chapter will soon find that
+     this great thinker rightly understood the foregoing,
+     although the great abstractness and hypothetical nature of
+     his conclusions might easily lead the reader astray. The
+     proposition which closes the second part, and which has been
+     so frequently misunderstood by his disciples, can be
+     maintained only on the supposition that the prices of all
+     commodities hitherto have been made up of equal proportions
+     of rent, capital and wages. But think of Brussels lace and
+     South American skins!]
+
+     [Footnote 197-4: Compare _J. Mill_, Anfangsgr�nde der polit.
+     Oekonomie, Jacob's translation, � 13 ff.; _McCulloch_,
+     Principles, III, 6. _Adam Smith_ was of opinion, that higher
+     wages enhanced the price of commodities in an arithmetical
+     ratio, a higher rate of interest in a geometrical one (I,
+     ch. 9). Similarly _Child_, Discourse of Trade, 38. This last
+     _Kraus_, Staatswirthschaft, better expresses by saying that
+     an increase in the rate of interest operates in the ratio of
+     the compounded interests.]
+
+
+SECTION CXCVIII.
+
+REMEDY IN CASE ONE FACTOR OF PRODUCTION HAS BECOME DEARER.
+
+When one of the three branches of income has grown as compared with the
+others; in other words, when the factor of production which it
+represents has become relatively dearer, it is to the interest of the
+undertaker and of the public, that it should be replaced where possible
+by another and cheaper productive force. (� 47.) On this depends the
+advantageousness of _intensive_ agriculture (high farming) in every
+higher stage of civilization. There land is dear and labor cheap. Hence,
+efforts are made to get along with the least amount of land-surface, and
+this minimum of land is made more productive by a number of expedients
+in cultivation, by manuring it, by seed-corn, etc., of course also by
+the employment of journeymen laborers, oxen, etc. And since the price of
+land is intimately connected with the price of most raw material,
+remains are here saved as much as possible, often with a great deal of
+trouble.[198-1] In a lower stage of civilization, such savings would be
+considered extravagance. As land is here cheap, and capital dear, it is
+necessary to carry on the cultivation of land _extensively_; that is,
+save in capital and labor, and allow the factor nature to perform the
+most possible. The clearing up of untilled land, or the draining of
+swampy land etc., would be frequently injurious here; for it would
+require the use of a very large amount of capital to obtain land of
+comparatively little value.
+
+In large cities, it is customary to build houses high in proportion to
+the dearness of the land.[198-2] Thus, in England, where the rate of
+interest is low and wages high, labor is readily supplanted by capital.
+In countries like the East Indies or China, the reverse is the case. I
+need only call attention to the palanquins used in Asia instead of
+carriages; to the men who in South America carried ore down eighteen
+hundred steps to the smelting furnaces,[198-3] and, on the other hand,
+to the "elevators," so much in favor in England, which are used in
+factories to carry people from one story to another inside to save them
+the trouble of going up stairs.[198-4]
+
+     [Footnote 198-1: The sickle instead of the scythe; careful
+     threshing by hand, and, where the rate of interest is low,
+     threshing by machinery instead of the treading out of the
+     sheaf by oxen. Thus in Paris the scraps from restaurants and
+     soap factories are made into stearin; and the remnants in
+     shawl factories in Vienna are sent to Belgium to be used by
+     cloth manufacturers.]
+
+     [Footnote 198-2: Remarked in ancient times of Tyre, which
+     was situated on a small island, and, therefore, without the
+     possibility of horizontal extension. (_Strabo_, XVI, 757.)]
+
+     [Footnote 198-3: _Humboldt_, N. Espagne II, ch. 5, II, ch.
+     11.]
+
+     [Footnote 198-4: Thus, in England, the safety of railroad
+     trains is not secured as in Germany by a multitude of
+     watchmen, etc.; but by solid barriers, by bridges at every
+     crossing, in other words, by capital.]
+
+
+SECTION CXCIX.
+
+INFLUENCE OF FOREIGN TRADE.
+
+Foreign trade, that great means of co�peration of labor among different
+nations, affords such a remedy in a very special manner. It very
+frequently happens that the undertakers of one country, when a certain
+factor of production seems too dear at home, borrow it elsewhere. Thus,
+for instance, a country with a high rate of wages draws on another for
+labor, and one with a high rate of interest on another for
+capital.[199-1] We elsewhere consider such a course of things from the
+standpoint of the supplying country, which in this way is healed of a
+heavy plethora of some single factor of production which disturbs the
+harmony of the whole. (�� 187, 259, ff.). But, at the same time, the
+supplied country, considered from a purely economic point of view, reaps
+decided advantages therefrom. If, for instance, a Swiss confectioner
+returns from Saint Petersburgh to his home, after having made a fortune
+in an honest way, no one can say that Russia has grown poorer by the
+amount of that fortune. This man made his own capital; if he were to
+remain in Russia, its national economy would be richer than before his
+immigration thither. Now, it is, at least, no poorer, and has in the
+meantime had the advantage of the more skilled labor of the
+foreigner.[199-2] And, so, when a capitalist living in Germany purchases
+Hungarian land, the national income of Hungary is diminished by the
+amount of the annual rent which now goes to Germany; but it receives an
+equal amount in the interest on capital, provided the purchase was an
+honorable one and the capital given in exchange for the land honestly
+invested.[199-3] If Hungary, in general, had a superabundance of land
+but a lack of capital, the economic advantage is undoubted.[199-4]
+
+These economic rules, indeed, are applicable only to the extent that
+higher and national considerations do not in the interest of all, create
+exceptions to them. "Is not the life more than meat, and the body than
+raiment?" No rational people will allow certain services to be performed
+for them preponderantly by foreigners, even when they can be performed
+cheaper by the latter--the services of religion, of the army, of the
+state, etc. The same is true of landownership; and all the truer in
+proportion as political and legal rights of presentation and other forms
+of patronage are attached to it. Lastly, hypothecation-debts which go
+beyond certain limits, may entail the same consequences as the complete
+alienation of the land;[199-5] and Raynal may have been, under certain
+circumstances, right when he said, that to admit foreigners to subscribe
+to the national debt was equivalent to ceding a province to them.[199-6]
+It is obvious that a great power may do much in this relation that would
+be a risk to a small state.[199-7] [199-8]
+
+     [Footnote 199-1: "The transportation of productive capital
+     and industrial forces from one point where their services
+     are worse paid for, to another where they find a rich
+     reward, will not be apt to be made so long as the
+     equilibrium may be obtained [most frequently much more
+     easily] by the interchange of the products." (_Nebenius_,
+     Oeff. Credit, I, 48.) The repeal of the corn laws in England
+     certainly diminished the emigration of English capital.]
+
+     [Footnote 199-2: For an official declaration of the
+     Brazilian state in this direction, see Novara Reise.]
+
+     [Footnote 199-3: Basing himself hereon, _Petty_, Political
+     Anatomy of Ireland, 82 ff., questions the usual opinion,
+     that Ireland suffered so much from absenteeism. He says that
+     a prohibition of absenteeism carried out to its logical
+     conclusion would require every man to sit on the sod he had
+     tilled himself. _Carey_, On the Rate of Wages, 1835, 477,
+     calls English capitalists who draw interest from America,
+     absentees.]
+
+     [Footnote 199-4: The older political economists have, as a
+     rule, ignored this law, and were wont to consider every
+     payment of money to a foreign country as injurious. Thus,
+     for instance, _Culpeper_, Tract against the high Rate of
+     Usury, 1623, 1640, disapproves all loans made from foreign
+     countries, because they draw more money in interest, and in
+     repayment of the principal out of the nation, than they
+     brought into it at first; and all the more, as the loan is
+     generally procured, not in the precious metals, but in
+     foreign goods, of which there is a superabundance in the
+     home country. Similarly _Child_, Discourse of Trade, 1690,
+     79, who claims that the creditor was always fattened at the
+     expense of the debtor. Hence _v. Schr�der_, F�rst, Schatz-
+     und Rentkammar, 141, advises that the capital borrowed in
+     foreign countries should be confiscated. Compare, also, _v.
+     Justi_, Staatswirthschaft, II, 461. And yet the very
+     simplest calculation shows, that if a man borrows $1,000 at
+     5 per cent. and makes 10, he is doing a good business with
+     the borrowed capital. This _Locke_, Considerations, 9,
+     recognizes very clearly. Compare, also, _J. B. Say_, Trait�,
+     II, ch. 10, and _Hermann_, Staatsw. Unters., 365 seq.]
+
+     [Footnote 199-5: Think of the English creditors in Portugal
+     and the Genoese in Corsica (_Steuart_, Principles, II, ch.
+     29.) Considered simply from an economic standpoint, the
+     Edinburg Review, XX, 358, very clearly demonstrates that
+     England should recruit her army from Ireland, where wages
+     are so much lower than in Great Britain. But how dangerous
+     in a political sense! In 1832, one-fourth of the stock of
+     the United States Bank was in the hands of foreigners, and
+     hence its opponents nick-named it the "British Bank." By the
+     rules of the principal bank in Philadelphia, in 1836, only
+     American citizens were allowed a vote in its proceedings.
+     Similarly in the case of the Bank of France. (_M.
+     Chevalier_, Lettres sur l'Amerique du N. I, 364.) It may be
+     remarked in general, that the older political economists
+     have based correct political views on false economic
+     principles, while the more modern ignore them entirely.]
+
+     [Footnote 199-6: Compare _Montesquieu_, E. des Lois L, XXII,
+     17; _Blackstone_, Commentaries, I, 320.]
+
+     [Footnote 199-7: Thus Austria conceded, in 1854-55, a number
+     of railways to French capitalists, and always favored the
+     purchase of landed estates by small foreign princes. In the
+     latter case, Austrian influence abroad was much more
+     promoted by the measure than was foreign influence in
+     Austria.]
+
+     [Footnote 199-8: Every nationality is not worth the
+     sacrificing of the highest economic advantage or profit to
+     it. Or, would it be preferable to leave the Hottentots and
+     Caffirs, poor, barbarous and heathenish?]
+
+
+SECTION CC.
+
+INFLUENCE OF THE BRANCHES OF INCOME ON THE PRICE OF COMMODITIES.
+
+In relation to foreign trade, in the narrowest sense of the term, fears
+were formerly very frequently expressed and are sometimes even now,
+which in the last analysis are based on the assumption that one country
+might be underbid by another in all branches of commodities.[200-1] This
+is evidently absurd. Whoever wants to pay for foreign commodities can do
+it only in goods of his own. When he pays for them with money, the money
+is either the immediate product of his own husbandry (mining
+countries!), or the mediate product obtained by the previous surrender
+of products of his own. To receive from foreign countries all the
+objects which one has need of, would be to receive them as a gift.
+
+It is just as absurd to fear that the three branches of income in the
+same country's economy should be all relatively high at the same time,
+and competition with foreign countries be thus made more difficult. Rent
+and interest especially in this respect have to demean themselves in
+ways diametrically opposed to each other.[200-2] When trade is entirely
+free, every nation will engage at last in those branches of production
+which require chiefly the productive forces which are cheapest in that
+country; that is which the relatively low level of the corresponding
+branch of income recommends to individual economy and enterprise. The
+merely absolute and personal height of the three branches of income has,
+as we have said, no direct influence on the price of commodities. In
+this respect, all these may be higher in one country than in another.
+Thus, for instance, English landowners, capitalists and workmen may be
+all at the same time in a better economic condition respectively than
+Polish landowners, capitalists and workmen, when the national income of
+England stands to its area and population in general, in a much more
+favorable ratio than the Polish.[200-3]
+
+     [Footnote 200-1: Thus, _Forbonnais_, El�ments du Commerce I,
+     73. _J. Moser_, Patr. Ph., I, No. 2.]
+
+     [Footnote 200-2: For a thorough refutation of the error that
+     everything is dearer in England than in France, see Journ.
+     des Econ., Mai, 1854, 295 seq. A distinguished architect
+     assured me in 1858, that a person in London could build
+     about as much for �1 as for from 6 to 7 thalers in Berlin;
+     only the aggregate expense in both countries is made up of
+     elements very different in their relative proportions.]
+
+     [Footnote 200-3: We very frequently hear that countries with
+     high wages must be outflanked in a neutral market by
+     countries with a low rate of wages. _Ricardo's_ disciples
+     reject this, because a decrease in the profit would put the
+     undertaker in a condition to bear the loss caused by the
+     high wages paid. See Report of the Select Committee on
+     Artisans and Machinery. _Senior_ ridicules such reasoning
+     very appropriately by inquiring: "Might not the loss enable
+     him to bear the loss?" Outlines, 146. And so _J. B. Say_
+     thinks that wages are always lowest when undertakers are
+     earning nothing. The truth is rather this: a country with a
+     relatively high rate of wages cannot, in a neutral market,
+     offer those commodities the chief factors required for the
+     production of which is labor; but the comparatively low rate
+     of interest or low rents, or the lowness of both found in
+     connection therewith, must fit it to produce other
+     commodities very advantageously. If, therefore, the rate of
+     wages rises, the result will be to divert production and
+     exports into other channels than those in which they have
+     hitherto flowed. The old complaint of Saxon agriculturists,
+     that there is a lack of labor in the country, is certainly
+     very surprising in a nation as thickly populated as Saxony.
+     But the remedy proposed by the most experienced
+     practitioners consists chiefly in a higher rate of wages to
+     enable workmen to care for themselves in old age, the
+     introduction of the piece-work system and an increase of
+     agricultural machines. But it seems to me, that the whole
+     situation there points to the advantage of in part limiting
+     the large farming hitherto practiced to live-stock raising
+     and other branches in which labor may be spared, and in part
+     of replacing it, by small farming of plants which are
+     objects of trade.
+
+     Many points belonging to this subject have been very well
+     discussed by _J. Tucker_, in his refutation of _Hume's_
+     theory on the final and inevitable superiority of poor
+     countries over rich ones in industrial matters. (Four Tracts
+     on political and commercial Subjects, 1774, No. 1; _L.
+     Lauderdale_, Inquiry, 206.)]
+
+
+SECTION CCI.
+
+HARMONY OF THE THREE BRANCHES OF INCOME.--INDIVIDUAL DIFFERENCE IN THEM.
+
+As national-economical civilization advances, the personal difference of
+the three branches of income is wont to become more and more sharply
+defined.[201-1] The struggle between landowners, farmers and workmen,
+which Ricardo necessarily assumed, did not exist at all in the middle
+ages; since landowners and farmers were then usually one and the same
+person, and since workmen, either as slaves or peasants, were protected
+against competition properly so called. And so in the industry of that
+time, based on the trades or on domestic industry.[201-2] [201-3]
+
+When, later, the division of labor increases, all the differences of
+men's aptitudes are turned to more advantage, and are more fully
+developed. In the same proportion that a working class is developed, the
+members of which are nothing but workmen, and can scarcely hope to
+possess capital or land,[201-4] there grows up, side by side with it, a
+class of mere capitalists, who come to obtain an ever-increasing
+importance.
+
+Considered from a purely economic point of view, this transition has its
+great advantages. How much must the existence of a special class of
+capitalists facilitate the concentration of capital and the consequent
+promotion of production, as well as its (capital's) price-leveling
+influx and outflow! Even "idle" capitalists have this of good, that,
+without them, no competent man, destitute of means could engage in any
+independent enterprise. When, indeed, the gulf between these two classes
+passes certain bounds, it may, politically and socially, become a great
+evil. (� 63.)[201-5]
+
+     [Footnote 201-1: Among nations in their decline, rent and
+     interest fall into one possession again, because capitalists
+     here are wont to buy the land. (_Roscher_, National�konomik
+     des Ackerbaues, � 140 ff.)]
+
+     [Footnote 201-2: Related to this peculiarity of the middle
+     ages is the fact that the canon law looked with disfavor on
+     the personal separation of the three factors of production.
+     So also in the prohibition of the _Weddeschat_ referred to �
+     161, instead of rent-purchase (_Rentekauf_), also by
+     extending the idea of partnership to a number of
+     transactions which are only forms of loan. (_Endemann_ in
+     _Hildebrand's_ Jahrb., 1863, 176 ff.) Antiquity also, with
+     the independence of its oikos, with its slavery, etc., had
+     not developed the difference between the three branches of
+     industry to any extent. _Rodbertus_, in _Hildebrand's_
+     Jahrbb., 1865, I, 343.]
+
+     [Footnote 201-3: If older writers, like _Steuart_, etc.,
+     speak so little of capital, labor and rent, and so much of
+     city and country, it is not on account of ignorance simply.
+     The contrast between the latter was then much more important
+     than to-day, and that between the former much less
+     developed. When, indeed, _Colton_, Public Economy of the
+     United States, 1848, 155 ff., claims that because in America
+     the three branches of income do not exist in so separated a
+     condition as in Europe, therefore European Political Economy
+     and its theories are not applicable to America, he forgets
+     that science should not be simply a description or
+     impression made of the reality, but an analysis of it.]
+
+     [Footnote 201-4: It is a very characteristic fact that, in
+     our days, when workmen are spoken of, it is generally day
+     laborers and tradesmen that are understood. In Prussia, in
+     1804, 17.8 per cent. of the population earned their living
+     by letting out their labor; in 1846, 22.8 per cent. as
+     day-laborers, servants, journeymen, tradesmen and factory
+     hands. (_Dieterici._)]
+
+     [Footnote 201-5: _Ricardo_, Principles, ch. 4, recognizes
+     the bright side as well as _Sismondi_, N. P., I, 268, or
+     _Buret_, De la Mis�re des Classes laborieuses en Angleterre
+     et en France, 1841, its dark side. _Sismondi_ thinks that
+     land and the capital employed in its cultivation are found
+     to the greatest disadvantage in the hands of the same
+     person. The existence of a thrifty peasant class (also of a
+     class of tradesmen) is one of the best means to prevent the
+     too wide separation of the three branches of income.]
+
+
+SECTION CCII.
+
+HARMONY OF THE THREE BRANCHES OF INCOME.--NECESSITY OF THE FEELING OF A
+COMMON INTEREST.
+
+Every class corresponding to a branch of the national income must live
+with the consciousness that its interests coincide with the economic
+interests of the whole nation. Whenever the entire national income
+increases, each branch of it may increase without any injury to the
+others, and, as a rule, does really increase.[202-1] But it is possible
+that the land owning class may be specially dependent on the prosperity
+of the whole people. How easy it is for workmen to emigrate; and how
+much easier yet for capital! England, to-day, can scarcely carry on a
+great war, in which it would not, at least at the beginning, have to
+fight English capital.[202-2] Where the treasure is, the heart is also!
+The land alone is immovable. It alone cannot be withdrawn from the
+pressure of taxation or from the distress of war. It alone cannot flee
+into foreign parts.[202-3] [202-4] At the same time, it cannot be denied
+that the possibility of being able to carry one's fortune out of a
+country in one's pocketbook and to be able to procure there with one's
+money the same conveniences, customs, etc., to which one was accustomed
+at home, is, under certain circumstances, an important element of
+political and religious freedom. Moreover, the bright side and the dark
+of every class of owners, especially the dread of all unnecessary and
+also of all necessary change, must be common to rent and interest.
+Hence, where there is a marked and well-defined separation of the
+branches of income, it will be always considered a difficult but
+unavoidable problem, how to enable mere labor to take an active part in
+the affairs of the state.[202-5]
+
+In times when calm prevails (not, however, in transition-crises such as
+are referred to in � 24), there is a public opinion concerning merit and
+reward, we might say a public conscience, by which a definite relation
+of the three branches of income to one another is declared equitable.
+Every "fair-minded man" feels satisfied when this relation is realized,
+and this feeling of satisfaction is one of the principal conditions
+precedent to the prosperity of production; inasmuch as upon it depends
+the participation (_Theilnahme_) of all owners of funds and forces.
+Every deviation from this relation or proportion is, of course, a
+misfortune,[202-6] but never so great as when it takes place at the
+expense of the wages of labor. It should never be forgotten that rent is
+an appropriation of the gifts of nature, and that interest is a further
+fruit obtained by frugality from older labor already remunerated.
+Besides, the rate of wages when high, generally adds to the efficiency
+of labor, which cannot be claimed for interest or rent.[202-7] The best
+means to preserve the harmony of the three branches of income is,
+however, universal activity. "Rich or poor, strong or weak, the idler is
+a knave." (_J. J. Rousseau._)
+
+     [Footnote 202-1: The contrast between _Adam Smith_, at the
+     end of the first book, and _Ricardo_, ch. 24, in regard to
+     this point, is very characteristic of the times of those two
+     authors. According to _Smith_, the private interests of the
+     landowners and laborers run entirely parallel; only both
+     classes are easily deceived as to their own interests.
+     Capitalists understand their own interest very well, and
+     represent it with great energy; but their interest is in
+     opposition to the common good, in so far as their profit
+     among a poor and declining people is higher than among a
+     rich and flourishing one. _Ricardo_, on the other hand,
+     thinks that the interest of the landowners is opposed to
+     that of all others for the reason that they desire that the
+     cost of the production of wheat etc. should be as high as
+     possible.
+
+     Related to this is the fact that, in _Adam Smith's_ time,
+     the new theory of rent remained almost unnoticed, but that
+     after 1815, it became rapidly popular. In a similar way, the
+     socialists of the present time are wont to charge the
+     undertaking class with opposing their own interests to those
+     of the whole people, meaning by the whole the majority. (�
+     196 a.)]
+
+     [Footnote 202-2: Towards the end of the 14th century the
+     great Flemish merchants always sided with the absolutism of
+     France in opposition to their own _Artevelde_.]
+
+     [Footnote 202-3: Hence it is, that in so many constitutions,
+     charters of cities, etc., the exercise of the higher rights
+     of citizenship is conditioned by the possession of a certain
+     quantity of land, and that landownership is considered as a
+     species of public function.
+
+     I read, a short time ago, the life of a North-German
+     noblemen who, in 1813, had fought bravely against the
+     French, "although he was a man of large estates, and the
+     enemy might therefore very easily have laid hands on them."
+     If this "although" of his eulogist expressed the actual
+     feeling of large landed proprietors, a great many old
+     political institutions would have lost all foundation.
+
+     _Ad. M�ller_ was of opinion that the rights of
+     primogeniture, etc., might be an obstacle in the way of the
+     development of the net income of a nation's economy; but
+     that they gave to the state and to the national life the
+     warlike tone so necessary to them, etc. (Elemente, II, 90.)]
+
+     [Footnote 202-4: "The Roman capitalists on whom Pompey
+     counted, left him in the lurch at the moment of danger,
+     because C�sar destroyed only the constitution, but respected
+     their business relations." (_K. W. Nitsch._)]
+
+     [Footnote 202-5: _Kosegarten_, Nat. Oek., 186, thinks that,
+     on account of the struggle between the labor interest and
+     the interest of capitalists, in our times, the "fourth
+     estate" is not as well represented by persons belonging to
+     the propertied classes as the constitutionalist party
+     thinks. And in fact, _Jarke_, Principienfragen, 1854, 197,
+     would have it represented by the government, in order to
+     prevent the struggle between rich and poor. See
+     _Cherbuliez_, Riche ou Pauvre, p. 242 seq.]
+
+     [Footnote 202-6: _A. Walker_ shows, in a very happy manner,
+     how no misfortune, however great, whether it come from
+     heaven or from earth, in the shape of pestilence, drought,
+     flood or oppressive taxation, so rapidly and hopelessly
+     ruins a nation's economy as when the harmony which should
+     exist between capital and labor is disturbed by foul play or
+     legal frauds between labor or capital and their reward. (Sc.
+     of Wealth, 66.)]
+
+     [Footnote 202-7: Compare _Lotz_, Revision, III, 322 ff.,
+     327, 334 ff. Handbuch, I, 511 ff. _Lafitte_, Sur la
+     R�duction de la Rente, 56. _Fuoco_ exaggerates this into the
+     principle: _che la distribuzione, e non la produzione, sia
+     la prima e principal operazione in economia_. (Saggi
+     economici, II, p. 44.)]
+
+
+
+
+CHAPTER VII.
+
+DISTRIBUTION OF NATIONAL INCOME.
+
+
+SECTION CCIII.
+
+EFFECT OF AN EQUAL DIVISION OF THE NATIONAL INCOME.
+
+The best distribution of the national income among a people is that
+which enables them to enjoy the greatest amount and variety of real
+goods, and permanently to produce real goods in an increasing quantity
+and variety.
+
+If the income of a people were divided equally among all, each one would
+indeed, be, to a very great extent, independent of all others. But then,
+no one would care to devote himself to the coarser and less agreeable
+occupations, and these would be either entirely neglected, or people
+would have to take turns in engaging in them.[203-1] (� 9.) And thus
+would disappear one of the chief advantages of the division of labor,
+viz: that the higher orders of talent are devoted to the higher orders
+of labor. Besides, it is very doubtful, whether, under such
+circumstances, there would still be any solvent (_zahlungsf�hige_)
+demand for the achievements of art.
+
+Nor would the saving of capital prosper, where such equality prevailed.
+Most men consider the average outlay of their equals as an unavoidable
+want, and save only to the extent that they possess more than others of
+their class. If, therefore, every one had an equal income, no one would
+consider himself in a condition to save.[203-2] The same consideration
+would deter most men from every economic venture, and yet no great
+progress is possible where no venture is made.[203-3] [203-4]
+
+     [Footnote 203-1: According to _Sch�ffle_, System, II, 379
+     ff., "the distribution of the social return of production
+     which conduces to the attainment of the highest measure of
+     civilization in the moral association of men and in all the
+     grades of that association, and thereby to the satisfaction
+     of all true human wants in the highest degree." Thus only
+     can a satisfactory line of demarkation be drawn between the
+     profit of capital and the wages of labor (384).]
+
+     [Footnote 203-2: See _Aristoph._, Plut., 508 ff. Not taken
+     into consideration sufficiently by _Benjamin Franklin_, in
+     his eulogy of the equality of property: The internal State
+     of America, 1784.]
+
+     [Footnote 203-3: The essential characteristic of the desert
+     is, according to _Ritter_, Erdkunde, I, 1019 seq., its
+     uniformity. No break in the horizontal plain, and hence no
+     condensation of atmospheric vapor into bodies of water of
+     any considerable size. The composition of the soil is
+     everywhere the same; nothing but masses of silex and salt,
+     hard and sharp. Lastly, extreme mobility of the surface,
+     which undulates with every wind, so that no plant can take
+     root in it. Nearly every feature in this picture finds its
+     analogon in the extreme political and economic equality of
+     men.]
+
+     [Footnote 203-4: _Les sup�riorit�s, qui ne sont dues qu'�,
+     un usage plus intelligent et mieux r�gl� de nos facult�s
+     naturelles, loin d'�tre un mal, sont un v�ritable bien.
+     C'est dans la plus grande prosp�rit�, qui accompagne un plus
+     grand et plus heureux effort, qu'est le principe de tout
+     d�veloppement._ (_Dunoyer_, Libert� du Travail, IV, 9, 10.)
+     But, indeed, the rich man should never forget that society
+     "inasmuch as it permits the concentration of wealth in his
+     hands, expects that he will employ it to better advantage
+     than the mass of mankind would if that same wealth were
+     equally divided among them." (_Brentano._)]
+
+
+SECTION CCIV.
+
+DISTRIBUTION OF NATIONAL INCOME.--MONEYED ARISTOCRACIES AND PAUPERISM.
+
+The extreme opposite of this, when the middle class disappears and the
+whole nation falls into a few over-rich men and numberless proletarians,
+we call the oligarchy of money, with pauperism as the reverse of the
+medal. Such a social condition has all the hardship of an aristocracy
+without its palliatives. As it is, as a rule, the offspring of a
+degenerated democracy,[204-1] it cannot in form depart too widely from
+the principle of equality. Only get rich, they cry to the famishing
+poor; the law puts no obstacle in your way, and you shall immediately
+share our position.[204-2] Here the uniformity and centralization of the
+state, which are an abomination in the eyes of genuine aristocracy, are
+carried to the extreme. Capital takes the place of men, and is valued
+more than men. All life is made to depend on the state, that its
+masters, the great money-men, may control it as they will. The falling
+away of all restrictions on trade, and of all uncommercial
+considerations relating to persons and circumstances, gives full play to
+capital, and speculators seek to win all that can be won. And, indeed,
+all colossal fortunes are generally made at the expense of others,
+either with the assistance of the state-power or by speculation in the
+fluctuations of values.[204-3] The dependence of proletarians on others
+is here all the greater, because from a complete absence of capital and
+land, so far as they are concerned, they are compelled, uninterruptedly,
+to carry their entire labor-force to market; and also because the supply
+of labor is made in masses embracing a large number of individuals,
+while the demand for labor lies in the hands of very few, and may be
+very readily and systematically concentrated.[204-4] So great and
+one-sided a dependence is, for men too far removed from one another for
+real mutual love, doubtless one of the greatest of moral temptations. It
+is as easy a matter for the hopelessly poor to hate the law, as it is
+for the over-rich to despise it.[204-5] Under such circumstances, the
+contagious power of communism, the dangers of which to order and freedom
+we have treated of in � So, is great. There is a dreadful lesson in the
+fact of history, that six individuals owned one-half of the province of
+Africa, _when Nero had them put to death_![204-6] Externally, a moneyed
+oligarchy will always be a weak state. The great majority who have
+nothing to lose take little interest in the perpetuation of its
+political independence. They rather rejoice at the downfall of their
+oppressors hitherto, and are cheered by the hope of obtaining a part of
+the general plunder.[204-7] The rich, too, separated from the neglected
+and propertyless masses of the nation, and rightly distrustful of them,
+begin to forget their nationality, and to balance its advantages against
+the sacrifices necessary to preserve it. But, a merely materialistic
+calculation leads doubtless to the conclusion, that universal empire is
+the most rational form of the state. The world-sovereignty of Rome was,
+by no circumstance more promoted than by the struggles between the rich
+and the poor, which devastated the _orbis terrarum_, and in which the
+Romans generally sided with the property classes.[204-8] [204-9] [204-10]
+[204-11] However, the worst horrors of the contrast here described can
+occur only in slave-countries. Compare _Roscher_, National�konomik des
+Ackerbaues, � 141.
+
+     [Footnote 204-1: The more the lower classes degenerate into
+     the rabble, and the more the national sovereignty comes into
+     the hands of this rabble, the easier will it become for the
+     rich to buy up the State.]
+
+     [Footnote 204-2: In the middle stages of the nation's
+     economy, such as are described in �� 62, 66, 90, 207, in
+     which even the relative advantages of industry on a large
+     scale over industry on a small scale, are not much developed
+     the making political rights dependent on the possession of a
+     certain amount of property is certainly a means of promoting
+     equality. Hence, therefore, a reconciliation between the
+     differences of class created by birth, may be effected for a
+     long time here.]
+
+     [Footnote 204-3: _Hermann_, Staatsw. Untersuchungen, II,
+     Aufl. 136.]
+
+     [Footnote 204-4: _Necker_, L�gislation et Commerce des
+     Grains, 1775,1. passim. Compare _Bacon_, Serm fideles, 15,
+     29, 34, 39.]
+
+     [Footnote 204-5: _Schiller's_ terrible words:
+
+          "_Etwas muss er sein eigen nennen,
+            Oder der Mensch wird morden und brennen._"
+
+     --i. e., "Something must he call his own, or man will murder
+     and burn."
+
+     It is one of _J. G. Fichte's_ fundamental thoughts that as
+     all property is based on mutual disclaimer, the person who
+     has nothing of his own, has disclaimed nothing, and
+     therefore reserves his original right to everything.
+     (Geschlossener Handelstaat., Werke, III, 400, 445.)]
+
+     [Footnote 204-6: _Plin._, H. N., XVIII, 7.]
+
+     [Footnote 204-7: How frequently this circumstance turned to
+     the advantage of the Germans during the migration of
+     nations! Compare _Salvian_, De Gubern, Dei, VII. Very
+     remarkable answer given by a Roman taken prisoner by Attila,
+     why it must be more agreeable to live among the Huns than in
+     the over-civilized Roman Empire: Prisci legatio, in
+     _Niebuhr_, Corp. histor. Byzant., I, 191 ff. And thus the
+     conquest of Constantinople by the crusaders, took place amid
+     the jubilation of the populace and of the country people:
+     _Nicetus_, Chron. Hist. Urbs capta, � 11, 340. This law of
+     nature becomes most apparent when one compares the
+     preponderating power of Rome against Carthage, with its
+     weakness against the Cimbri and Mithradates. May not
+     Hannibal have been to his own country a phenomenon like that
+     which C�sar was afterwards to Rome? A healthy and united
+     Carthage he certainly could have held against Italy.]
+
+     [Footnote 204-8: On the tendencies of the later times of the
+     Jewish monarchy toward an oligarchy of money, see _Amos_, 2,
+     6 seq.; 6 1 ff.; 8, 5 ff.; _Micha_, 2; 2 _Isaias_, 5, 8 seq.
+     Compare _Nehem._ 5. While Exodus, 30 and 38, mentions over
+     663,000 taxable men, the ten tribes comprising the kingdom
+     of Israel had only 60,000. XII Kings, 15, 19. _Ewald_,
+     Geschichte des Volkes Israel, II, 2, 320.]
+
+     [Footnote 204-9: The spirit of the Grecian moneyed oligarchy
+     is best revealed by _Plato_, De Republ., VIII, and
+     _Aristotle_, Polit., III, VI, passim, the first of whom
+     considers the contrast between rich and poor as in itself
+     demoralizing (IV, 422). All that can be called by the name
+     of tradition, the political faith of a people, and the
+     national feeling of right, had, in the Grecian world, been
+     transformed into mere reasoning and concerned itself, with
+     frightful exclusiveness, to the contrast existing between
+     rich and poor. Compare _Aristot._, Pol., II, 4, 1, with
+     _Droysen_, Gesch. des Hellenismus, II, 496 etc., and the
+     citations from _Menander_ in _Stob._, Serm., LXXXIX, 503, in
+     which gold and silver are proclaimed almighty. It is a
+     remarkable proof of the _omne venalia esse_ in Greece that
+     _Thucydides_ (II, 65) lauds even _Pericles_, especially for
+     his incorruptibility. _Demosthenes_ says of his
+     contemporaries, that it excited envy when any one was
+     bribed, laughter when he confessed it; that he who was
+     convicted of it (bribery) was pardoned, and he who blamed
+     it, hated. (Phil., II, 121.) Compare the list in _Demosth._,
+     Pro. Cor., 324; _Pausan_, III, 10. In Athens, on the
+     occasion of the census-constitution imposed forcibly on the
+     state by _Antipater_, that in a population of 21,000
+     citizens, only 9,000 had a property worth 2,000 drachmas or
+     more, that is, enough for a man to live on in the most
+     niggardly way, on the highest interest it would yield. If,
+     in addition to this, account be taken of the large number of
+     slaves, the small number of the property class is all the
+     more surprising, inasmuch as Lycurgus' financial
+     administration bears evidence that the people were in a
+     flourishing and comfortable condition; that afterwards,
+     peace for the most part prevailed, and that Alexander's
+     victories enabled Grecian commerce to make large gains.
+     Compare _Boeckh_, Staatsh. IV, 3, 9.
+
+     In Sparta, the governing class finally numbered only 700
+     families, 100 of which owned all the land, and 600 of which
+     were, therefore, only noble proletarians. It is well known
+     that the social attempts at reform by Agis and Kleomenes
+     only precipitated the downfall of the state. (_Plutarch_,
+     Agis and Kleomenes.) _Aratos_ owed a great part of the
+     consideration in which he was held to the reputation which
+     he obtained by protecting the property of the Sicyonian
+     exiles (_Thirlwall_, History of Greece, VIII, 167), while on
+     the other hand, men like _Agathocles and Nabis_ supported
+     their faction by persecution of the rich, new debtor-laws
+     and new division of land. (_Polyb._, XIII, 6, XVI, 13, XVII,
+     17, XXVI, 2; _Livy_, XXXII, 38, 40, XXXIV, 31, XXXVIII, 34;
+     _Plutarch_, Cleom, 20.) _Livy_ expressly says that all the
+     _optimates_ were in favor of the Romans, and that the
+     multitude wanted _novare omnia_ (XXXV, 34). On the frightful
+     struggle between these opposite parties, on the revolutions
+     and counter revolutions, see also _Polyb._, XIII, 1, 2;
+     XVIII, 36 ff., XXX, 14; XXII, 21; XXXVIII, 2, 3; _Diodor._,
+     XIX, 6, 9; _Exc._, 587, 623; _Livy_, XLI, 25, XLII, 5;
+     Pausan, VII, 14. In Boeotia, no one was for 25 years,
+     chosen by the people for the higher offices, from whom they
+     did not expect a suspension of the administration of justice
+     in the matter of crimes and debts, as well as the spending
+     of the national treasure. (_Polyb._, XX, 14, 5, 6.) The
+     events at Corinth, before its conquest by the Romans,
+     forcibly remind one of the Paris Commune of 1871. This
+     decline had, as usual, begun earliest in the colonies: thus,
+     in Sicily, even in _Thucyd._, V, 4. Milesian struggle off
+     the ploutis and cheiromacha in _Plutarch_, Qu. Gr., 32;
+     _Athen._, XII, 524.]
+
+     [Footnote 204-10: The disappearance of the middle class in
+     Rome, between the second and third Punic war, was brought
+     about chiefly by the great foreign conquests made by it. An
+     idea of the wealth which the governors of the provinces
+     might extort may be formed from this among other facts, that
+     Cicero originally demanded against Verres a fine of
+     5,000,000 thalers. (_Cic._, in Verrem Div., 5.) Verres is
+     related to have said, that he would be satisfied if he could
+     retain the first year's booty; that during the second, he
+     collected for his defenders; and during the third, for his
+     judges! (_Cic._, in Verr., I, 14.) Even _Cicero_ became
+     richer within the space of one year, in Cilicia, where it
+     was well known he was not oppressive, by 110,000 thalers,
+     which sum does not include numerous presents, pictures, etc.
+     (_Drumann_, Gesch. Roms., VI, 384.) On the frightful
+     oppression and extortion practised by Brutus (!) in Asia,
+     see _Cicero_, ad. Att, V, 21; VI, 1. _Sallust_, in his
+     Jugurtha, has shown how such men waged war, and to what
+     extremes their well-deserved want might push them in his
+     Catiline. _Patricium scelus!_ Most of the senators were in
+     debt to Crassus; and this, together with his great political
+     insurance-activity and power in elections, criminal cases at
+     law, etc., it depended that he, for a time, figured beside
+     C�sar and Pompey.
+
+     The wealth of these important personages must, and that not
+     only relatively, have made the poor poorer and their luxury
+     excited the covetousness of the people; but especially the
+     great number of slaves they kept, combined with their
+     pasturage system of husbandry, which rapidly spread over all
+     of Italy after the provinces had emptied their granaries to
+     supply the wants of the sovereign people, must have made it
+     less and less possible for the proletarians to live by the
+     work of their hands. Previously, the lower classes of the
+     free born had been exempted from the military service, while
+     slaves were conscripted for the fleet. Now, all this was
+     changed; and thus was taken away one of the chief causes
+     which had made the labor of free day laborers more
+     advantageous on the larger estates. (_Nitzsch_, Gracchen,
+     124 ff., 235 ff.) The spoils of war and conquest caused the
+     higher middle class to prefer to engage in the usurious
+     loaning of money rather than in industry which would much
+     more rapidly have formed a small middle class. (_Mommsen_,
+     R. G. I, 622 ff.)
+
+     Hence, the _misera ac jejuna plebecula, concionalis hirudo
+     aerarii_, according to _Cicero_, ad Att., I, 16, 6. At a
+     time, when the Roman census showed a population of over
+     1,500,000, Philippus, 104 before Christ, otherwise a
+     "moderate" man, could claim that there were not 2,000
+     citizens who had any property. (_Cic._, de Off., II, 21.)
+     True, those few were in such a position, that Crassus would
+     allow that those only were rich, who could feed an army at
+     their own expense. (_Cicero_, Parad., VI, 61; _Plin._, H.
+     N., XXXIII, 47.) Concerning the colossal private fortunes
+     under some of the earlier imperators, see _Seneca_, De
+     Benef., II, 27; _Tacit_., Ann., XII, 53, XIII, 32; XIV, 35;
+     Dial. de Causis, 8, _Dio C._, LXIII, 2 seq.
+
+     The clients of the time, that is the numerous poorly paid
+     idlers treated as things of little value, in the service of
+     the great, correspond, on a small scale, to the position of
+     the great crowd in relation to the emperor. Compare
+     _Friedl�nder_, Sittengeschichte Roms., I, 296 ff. As late as
+     the West-Gothic storm, there were many houses which drew
+     4,000 pounds in gold, and about 1/3 as much in kind, from
+     their estates, per annum. (_Plut._, Bibl. Cod., 80, 63,
+     Bekk.) Goddess Pecunia Majestas divitiarum, in _Juvenal_, I,
+     113.
+
+     If we take the Roman proletariat in its wider extent, the
+     most frightful picture it presents is its slave-wars. Such a
+     war Sicily had shortly before the _tribunate_ of the elder
+     Gracchus, cost over a million (?) livres; and at the same
+     time there was a great uprising of slaves desolating Greece.
+     (_Athen._, VI, 83, 87 ff., 104.) A second war broke out in
+     the time of Cimbri. But the most frightful was that under
+     Spartacus, who collected 100,000 men, and the course of this
+     uprising will always remain a type of proletarian and slave
+     revolts. It originated among the most dangerous class of
+     slaves, most dangerous because best prepared for the
+     struggle, the gladiators, and among the immense _ergastula_,
+     where they were held together in large masses. It spread
+     with frightful rapidity, because the combustible material on
+     which it fed was everywhere to be found. It was conducted
+     with the most revolting cruelty. What the slaves demanded
+     before all else was vengeance, and what dread had a
+     gladiator of a death unaccompanied by torture?
+
+     After the first successes of the slaves dissensions broke
+     out among them. Such hordes can nowhere long preserve a
+     higher object than the momentary gratification of their
+     passions--a fact which shields human society from their
+     rage. Piracy, also, is another side of this proletarian
+     system. It found its strongest aliment in the system of
+     spoliation practiced by the Romans in Asia Minor. The
+     oppressed along the whole coast, joined the pirates
+     "preferring to do violence rather than to suffer."
+     (_Appian_, B. Mithr., 92, _Dio C._, XXXII, 3.) The temples
+     and the wealthy Romans were in special danger. But the worst
+     feature in the horrible picture was that many of the great
+     shared in the spoils with the robbers. They bought slaves
+     and other booty from them at mock prices, even close by the
+     gates of Rome. (_Strabo_, XIV, 668 seq., _Dio C._, XXXVI,
+     5.) Precisely as the slave-wars were looked upon with
+     pleasure by the poorer free men. Incendiarism was one of the
+     chief weapons of mutinous pauperism. (_Drumann_, IV, 282.)
+     The celebrated bacchanalian trial and the questions of
+     poisoning which followed it as a consequence (186 before
+     Christ) may be looked upon, in Rome, as the first marked
+     symptoms of the disruption between the oligarchy of money
+     and the proletariat. This put the morality of the higher
+     classes in a bad light, while, at the same time, a large
+     slave conspiracy in Apulia, which was not suppressed until
+     the year 185, exhibited the reverse of the picture. Cato,
+     the censor, endeavored to oppose this tendency by high
+     sumptuary taxes, and by establishing proletarian colonies.
+     At the same time we see the various parties among the
+     nobility uniting and the publicans joining them. (_Nitzsch_,
+     Gracchen, 124 ff.) The history of the last hundred years of
+     the Republic turns chiefly on the three great attempts made
+     by the proletariat to overthrow the citadel of the moneyed
+     oligarchy, under the Gracchi, under Marius and under C�sar.
+     The last was permanently successful but entailed the loss of
+     the freedom of both parties.
+
+     Among the pretty nearly useless remedies employed, besides
+     those described in � 79, I may mention the following also:
+     the great number of agrarian laws intended to lessen estates
+     of too great extent owned by one person, and to restore a
+     free peasant population, in the years 133, 123, 100, 91, 59
+     before Christ; the law in Hannibal's time (_Livy_, XXI, 63)
+     that no senator should own a ship with a capacity of more
+     than 300 amphora; the provision (_Sueton._, Caes., 42) that
+     all great herd-owners should take at least one-third of
+     their shepherds from the ranks of freemen; the many laws _de
+     repetundis_, the first of which was promulgated 149 before
+     Christ, intended to protect the provinces against spoliation
+     by the governors; the L. Gabinia, 56 before Christ, which
+     prohibited the loaning by the provinces in Rome; lastly, a
+     rigid enforcement of police provisions against slaves,
+     especially against their bearing arms, which were carried to
+     such an extent, that slaves who had killed a boar with a
+     spear were crucified. (_Cicero_, in Verr., II, 3.) The chief
+     rule of every real oligarchy of money is, while they hold
+     the lower classes in general under their yoke with great
+     severity, to keep dangerous elements in good humor at the
+     expense of the state. Among these are especially the rabble
+     in large cities and the soldiery. Compare _Roscher_,
+     Betrachtungen �ber Socialismus und Communismus, 436, 437.]
+
+     [Footnote 204-11: In medieval Italy, also, popular freedom
+     was lost through a moneyed oligarchy and a proletariat.
+     _Popolo grasso_ and _minuto_ (_bourgeoisie_--_peuple_) in
+     Florence. The former were reproached especially with the
+     breach of trust in the matter of the public moneys
+     (_Sismondi_, Gesch. der Ital. Republiken, II, 323, seq.),
+     which reminds one of the French cry, _corruption_ in 1847.
+     _Machiavelli_ gives a masterly description of the class
+     contrasts during the last quarter of the fourteenth century,
+     in his Istoria Fiorent., III, a. 1378, 4. The poor, whose
+     spokesmen recall the most desperate shibboleths of modern
+     socialists, dwell principally on this, that there is only
+     one important difference, that between rich and poor; that
+     all men are by nature entirely equal; that people get rich
+     only through deceit or violence; that the poor want revenge
+     etc. It is significant how, in Florence, the largest banker
+     finally became absolute despot, and that contemporaneously
+     in Genoa, the Bank of St. George, in a measure, absorbed the
+     state; the former supported by numerous loans made to
+     influential persons like Crassus (_Machiavelli_, Ist. Fior.,
+     VII); the latter by the overstraining of the system of
+     national debt.]
+
+
+SECTION CCV.
+
+DISTRIBUTION OF THE NATIONAL INCOME.--HEALTHY DISTRIBUTION.
+
+Hence a harmony of the large, medium and small incomes may be considered
+the indispensable condition of the economic prosperity of a
+people.[205-1] This prosperity is best secured when the medium-class
+income prevails, when no citizen is so rich that he can buy the others,
+and no one so poor that he might be compelled to sell himself. (_J. J.
+Rousseau._)[205-2] Where there is not a numerous class of citizens who
+have time enough to serve the state even gratis, as jurymen, overseers
+of the poor, municipal officers, representatives of the people etc.
+(compare � 63), and property enough to be independent of the whims and
+caprices of others, and to maintain themselves and the state in times of
+need, even the most excellent of constitutions must remain a dead
+letter. Nor should there be an entire absence of large fortunes, and
+even of inherited large fortunes. The changes of ministry which
+accompany constitutional government are fully possible only when the
+choice of men who would not lose their social position by a cessation of
+their salaries as public functionaries is not altogether too
+limited.[205-3] Thus the transaction of the most important political
+business, especially that which relates to foreign affairs, requires a
+peculiar elasticity of mind, and a capacity for routine on the grandest
+scale, which with very rare exceptions, can be acquired only by
+habituation to them from childhood, and which are lost as soon as the
+care for food is felt. The bird's-eye-view of those who are born "great"
+does not, by any means, embrace the whole truth of human things, but it
+does a very important side of it. Among this class, as a rule, it is
+easiest to find great party leaders, while leaders who have to be paid
+by their party, generally become in the long run, mere party
+tools.[205-4] It is true that it requires great intellectual and moral
+power to resist the temptations which a brilliant hereditary condition
+presents; temptations especially to idleness, to pride and debauchery.
+For ordinary men, it is a moral and, in the end, an economic blessing,
+that they have to eat their bread in the sweat of their brow,[205-5] and
+that they can grow rich only by long-continued frugality.[205-6]
+However, the distribution of the national income, and every change in
+that same distribution, constitute one of the most important but at the
+same time one of the most obscure departments of statistics.[205-7] When
+inequality increases because the lower classes absolutely decline, there
+is no use in talking any longer about the prosperity of the
+nation.[205-8] It is different, of course, when only the higher classes
+become, relatively speaking, higher yet. But even this latter kind of
+inequality may operate disastrously, inasmuch as it nourishes the most
+dangerous tendency of democracy, that of envy towards those who are
+better off.
+
+     [Footnote 205-1: _Verri_ Meditazioni, VI.]
+
+     [Footnote 205-2: _Aristotle's_ view that, in a good state,
+     the middle class should preponderate. (Polit. IV, 6, Sch.)
+     _Sismondi_ says: _la richesse se r�alise en jouissances;
+     mais la jouissance de l'homme riche ne s'accro�t pas avec
+     ses richesses_. (Etudes sur l'Economie politique, 1837, I,
+     15.)]
+
+     [Footnote 205-3: If state offices were to be filled by
+     doctors or lawyers who live by their practice, after a time,
+     only those could be had who had no large practice to
+     sacrifice, that is, beginners or obscuranti.]
+
+     [Footnote 205-4: Per contra, see _Bazard_, Doctrine de Saint
+     Simon, 323. But _Sismondi_ is certainly right: _nous ne
+     croyons point, que les hommes qui doivent servir �
+     l'humanit� de flambeau naissent le plus souvent au sein de
+     la classe riche; mais elle seule les appr�cie et a le loisir
+     de jouir de leurs travaux_. (Etudes, I, 174.)]
+
+     [Footnote 205-5: To appreciate the demoralizing effects of
+     an income obtained without labor and without trouble on men
+     of small culture, we need only witness the bourgeoisie at
+     great watering places, pilgrimage places, seats of courts
+     and university cities supported largely by students.
+     Similarly at Mecca, Medina, Meschhed, Rome, etc. (_Ritter_,
+     Erdkunde VIII, 295 seq. IX, 32), and even in Palestine,
+     during the crusades, when the miserable Pullanes counted on
+     the tribute of the pilgrims. (_Wilken_, VII, 369, according
+     to _Jacob de Vitriaco_.)]
+
+     [Footnote 205-6: A man with $100,000 a year has a much less
+     incentive to make savings than 100 men with $1,000 each per
+     annum, for the reason that his economic wants are already
+     all richly satisfied, and he can have little hope of
+     improving it by saving. (_von Mangoldt_, V. W. L., 141.)]
+     [Footnote 205-7: _Harrington's_ fundamental thought
+     (1611-1677, Works, 1700) is, that the nature of the
+     constitution of a state depends on the distribution of the
+     ownership of its land. "Balance of property!" Where, for
+     instance, one person owns all the land or the larger portion
+     of it, we have a despotism; where the distribution is more
+     equal, a democracy, etc. All real revolutions are based upon
+     a displacement of the centre of gravity of property, since
+     in the long run, superstructure and foundation can not be
+     out of harmony with each other. For this reason, agrarian
+     laws are the principal means to prevent revolutions.
+     (_Roscher_, Gesch. der English. Volkswirthschaftslehre, 53
+     ff.) _Montesquieu_ also pays special attention to the
+     political consequences of the distribution of wealth. Thus,
+     for instance, in monarchies, the creation of large fortunes
+     should be promoted by the right of primogeniture; in
+     aristocracies, on the other hand, the great wealth of a few
+     nobles is as detrimental as that of extreme poverty. (Esprit
+     des Lois, V, 8, 9.)]
+
+     [Footnote 205-8: The common assertion of the socialists,
+     that the inequality of property is frightfully on the
+     increase, is as far from being proved as is the opposite one
+     of _Hildebrand_, Nat. Oek. der Gegenwart und Zukunft, I, 245
+     ff. According to _Macaulay_, Hist. of England, ch. 3, there
+     were, in England, in 1685, only about three (ducal) families
+     with an annual income of about �20,000 a year. The average
+     income of a lord amounted to �3,000; of a baronet, to �900;
+     of a member of the house of commons, to scarcely �800; and a
+     lawyer with �1,000 per annum was considered a very important
+     personage. At the same time, there were 160,000 families of
+     free peasants, that is more than 1/7 of the whole
+     population, whose average income amounted to from �60 to
+     �70. For the year 1821, _Marshall_, Digest of all Accounts,
+     etc., II, 1833, assumes, that there were 4,000 families with
+     over �5,000 yearly income; 52,000 families with from �1,500
+     to �5,000; 386,000 families with from �200 to �1,000;
+     2,500,000 families with less than �200. Compare, _per
+     contra_, the Edinburg Review, 1835. The income tax
+     statistics of 1847 show that 22 persons had an income of at
+     least �50,000 a year; 376 persons, from �10,000 to �50,000;
+     788, from �5,000 to �10,000; 400, from �4,000 to �5,000;
+     703, from �3,000 to �4,000; 1,483, from �2,000 to �3,000;
+     5,234, from �1,000 to �2,000; 13,287, from �500 to �1,000;
+     91,101, from �150 to �500.
+
+     If we compare these numbers with the corresponding ones of
+     the income tax of 1812, the numbers of those who returned an
+     income of �150 to �500 increased 196 per cent.; of those
+     with an income of from �500 to �1,000, 148 per cent.; of
+     from �1,000 to �2,000, 148 per cent.; of from �2,000 to
+     �5,000, 118 per cent.; of from �5,000 and more, 189 per
+     cent.; while the population in general had increased by
+     about 60 per cent. Compare Athen�um, August, 1850; Edinburgh
+     Rev., April, 1857. Between 1848 and 1857, the development
+     was less favorable, so that the incomes of from �150 to �500
+     subject to taxation, increased only 7 per cent.; those from
+     �500 to �1,000 about 9.56 per cent.; those from �10,000 to
+     �50,000, by 42.4, and those over �50,000, 142.1 per cent.
+     Between 1858 and 1864, the incomes derived from industry and
+     commerce, subject to taxation below �200, had increased
+     about 19.4 per cent.; those over �10,000, 59 per cent.;
+     while the aggregate amount of all taxed incomes in this
+     category increased 19 per cent. (Stat. Journal, 1865, 546.)
+     According to _Baxter_, The National Income of the United
+     Kingdom, 1868, there are now 8,500 persons with a yearly
+     income of �5,000 and more, who draw in the aggregate 15.6
+     per cent. of the national British income, and on the average
+     nearly �15,000 each. There are, further, 48,800 persons with
+     a yearly income of from �1,000 to �5,000; 178,300 with from
+     �300 to �1,000; 1,026,400 with from �100 to �300; and
+     1,497,000 with less than �100 a year from their property. In
+     addition to this, 10,961,000 workmen on wages, with an
+     aggregate income of �324,600,000. Compare �� 172, 230.
+
+     In France, the number of so-called _�lecteurs_, who paid
+     direct taxes to at least the amount of 200 francs was, in
+     1831, 166,583, and increased uninterruptedly until 1845,
+     when it was 238,251, while the population had increased only
+     8.5 per cent.
+
+     In Prussia, the revenue from class-taxation up to 1840,
+     increased, unfortunately, in a smaller proportion than the
+     population: hence the lowest classes must have increased
+     relatively more than the others. (_Hoffmann_, Lehre von den
+     Steuern, 176 ff.) Between 1852 and 1873, according to the
+     statistical returns from class-taxation and of the
+     classified income tax, the growth of large incomes in the
+     provinces of old Prussia, seems to have been much more rapid
+     than that of the smaller ones. Thus, for every 100
+     taxpayers, with an income of from 400 to 1,000 thalers,
+     there was an increase to 175.5; of from 1,000 to 1,600
+     thalers, for every previous 100, 210.2; from 1,600 to 3,200
+     thalers, 232.3; of from 3,200 to 6,000, 253.9; of from 6,000
+     to 12,000 thalers, 324.8; of from 12,000 to 24,000, 470.6;
+     of from 24,000 to 52,000 thalers, 576.3; of from 52,000 to
+     100,000 thalers, 568.4; of from 100,000 to 200,000 thalers,
+     533.3; of over 200,000, 2,200. Hence, probably, a greater
+     growth towards the top, than the general increase in the
+     population will account for.
+
+     This concentration of property took place most noticeably in
+     Berlin, where for instance, between 1853 and 1875 the
+     incomes of from 1,000 to 1,600 thalers increased 212.2 per
+     cent.; those from 24,000 to 52,000, 994.1 per cent. There
+     are now in the whole state 2.24 per cent. of the population
+     (including those dependent on them) subject to the income
+     tax; that is, estimated as having a yearly income of 1,000
+     thalers. Of the remaining 97.76 per cent., more than a
+     quarter, and probably more than one-half, are as a class
+     free from taxation, because their income is presumably less
+     than 140 thalers (6,049,699 against 532,367, exempt for
+     other reasons and 4,850,791 belonging to classes subject to
+     taxation: these three numbers probably not including
+     dependents). Among the payers of an income tax, there are
+     79,464 with an average income of 1,237 thalers per annum;
+     41,366 with 2,171 thalers; 12,305 with 4,279 thalers; 4,030
+     with 8,383 thalers; 1,655 with 16,527 thalers; 513 with
+     32,428 thalers; 163 with 65,595 thalers; 39 with 137,692
+     thalers; 21 with 427,142 thalers; and one with 1,700,000
+     thalers per annum. (Preuss. statist. Ztschr., 1875, 116,
+     132, 142, 145, 149.) As the reverse of this picture, we may
+     take the fact that, in 1870, of 1,047,974 cases of
+     guardianship, there were only 208,614 in which there was any
+     property to be looked after. (Justiz-Minist-Blatt, 1872, No.
+     6.)
+
+     The figures from Bremen are very favorable. The incomes
+     subject to taxation amounted, in 1847, to 71.6 thalers per
+     capita; in 1869, to 131.2. The incomes subject to taxation
+     in class No. 1, that is from 250 to 399 thalers, increased
+     78 per cent.; in class No. 2, 400 to 499 thalers, 45 per
+     cent.; in class No. 3, 500 thalers and more, by 57 per cent.
+     The average income of the third class amounted, in 1847-50,
+     to 1,952 thalers; 1866-69, to 2,439 thalers. In 1848, there
+     were, of estates of over 3,000 thalers subject to taxation,
+     only 38 to every 1,000 inhabitants; in 1866, 49. (Jahrb. f.
+     amtl. Statistik Bremens, 1871, Heft 2, p. 185 seq.)]
+
+
+
+
+BOOK IV.
+
+CONSUMPTION OF GOODS.
+
+
+
+
+CHAPTER I.
+
+CONSUMPTION OF GOODS IN GENERAL.
+
+
+SECTION CCVI.
+
+NATURE AND KINDS OF CONSUMPTION.
+
+As it is as little in the power of man to destroy matter as it is to
+create it, we mean by the consumption of goods, in the broad sense of
+the word, the abolition of or the doing away with an utility without any
+regard to the question whether another higher utility takes its place;
+in its narrower sense (consumption proper), a decrease of resources of
+any kind. Consumption is the counterpart of production (� 30), the top
+of the tree of which production is the roots, and the circulation and
+distribution of goods the trunk. (_A. Walker._) There is, also, what
+Riedel calls immaterial consumption, as when a utility disappears,
+either because the want itself to which it ministers disappears or
+because views have changed as to the means to be employed towards its
+satisfaction.[206-1]
+
+     [Footnote 206-1: Diminutions of value, such, for instance,
+     as an almanac, a newspaper, etc., undergoes simply from the
+     appearance of the next years' etc.; of a shield or a part of
+     an officer's uniform with the initials of the reigning
+     sovereign, only because of the fact of a new succession to
+     the throne. A boot or a glove loses a great part of its
+     value when its mate is destroyed. (_Rau_, Lehrbuch, � 319.)]
+
+
+SECTION CCVII.
+
+NATURE AND KIND OF CONSUMPTION.--THE MOST USUAL KIND.
+
+The commonest kind of consumption is that caused by the use of a thing,
+or by the employing of it for the purpose of acquisition or of
+enjoyment.[207-1] From time immemorial, enjoyment-consumption has been,
+preponderantly, the affair of women, as acquisition-consumption has been
+the business of men.[207-2] Other circumstances being equal, the degree
+or extent of consumption by use (use-consumption) is determined by
+national character. Thus, for instance, the cleanliness and love of
+order characteristic of the Dutch have contributed greatly to the long
+preservation in good condition of their dwellings and household
+articles.[207-3]
+
+In the higher stages of civilization, the use of goods is wont to be
+divided more and more into special branches, according to the different
+peculiarities of the goods themselves, and of the different wants of
+men; a course of things which is, both as cause and effect, intimately
+related to the division of labor. I here speak of a principle of
+_division of use_ (differentiation and specialization). Thus, for
+instance, Lorenz Lange, in 1722, found only one kind of tea in the trade
+between Russia and China; M�ller, in 1750, found seven; Pallas, in 1772,
+ten; and Erman, in 1829, about seven hundred.[207-4] As the number of
+gradations of different kinds of the same goods increases with
+civilization, there is, in times of war, a retrogression in this
+respect, to a lower economic stage.[207-5]
+
+Opposed to this, we have the principle of the combination of use. There
+are numberless kinds of goods which may serve a great many just as well
+as they can one exclusive user; and this either successively or
+simultaneously, inasmuch as there is no necessity why, with the
+increasing use of the object, the size of the object itself should
+increase in an equal proportion. (According to Marlo: wealth usable by
+one; wealth usable by many; wealth usable by all.) Thus, for instance, a
+public library may be incomparably more complete, and accessible in a
+still higher degree than ten private libraries which together cost as
+much as it did. And so, a restaurant-keeper may serve a hundred guests
+at the same time, with a much greater table-variety, more to their
+taste, and at a more convenient time, than if each person made the same
+outlay for his private kitchen.[207-6] While formerly, only the great
+could travel rapidly, combination of use has enabled even the lower
+classes to do so in our own days. There is, doubtless, a dark side to
+this picture, too. Combination of use requires frequently great
+sacrifices of personal independence, which should not be underestimated
+when they affect individuality of character, or threaten the intimacy
+and closeness of family life. It is, however, a bad symptom when the
+division of use increases without any corresponding combination of
+use.[207-7] [207-8]
+
+     [Footnote 207-1: We should also mention here destructive
+     consumption, where the defenders of a country destroy
+     buildings, supplies, etc., only that the enemy may not use
+     them.]
+
+     [Footnote 207-2: Compare Die Lebensaufgabe der Hausfrau,
+     Leipzig, 1853; _von Stein_, Die Frau auf dem Gebiete der
+     National Oekonomie, 1875, and the beautiful remarks of
+     _Sch�ffle_, N. Oek., 166; and _Lotz_, Mikrokosmus, II, 370
+     ff.]
+
+     [Footnote 207-3: In Germany horses are said to last, on an
+     average, 18 years; in England 25; in France and Belgium,
+     only 12 years. (See for the proofs of this _Rau_, Handbuch
+     II, � 168.) The more civilized a people are, the less do
+     they completely destroy values by use; and the more do they
+     use their old linen, etc. as rags; their remains of food as
+     manure, etc. (_Roesler_, Grunds., 552.)]
+
+     [Footnote 207-4: _Ritter_, Erdkunde, III, 209. Thus, the
+     French in the 13th century were acquainted with only three
+     kinds of cabbage; in the 16th, with six, about 1651, with
+     12; they are now acquainted with more than 50; in the 16th
+     century they knew only 4 kinds of sorrel; in 1651, 7; about
+     1574, only 4 kinds of lettuce; to-day they know over 50;
+     under Henry II., they were acquainted with 2 or 3 kinds of
+     melons; in the 17th century, with 7; now they are acquainted
+     with over 40. (_Roquefort_, Histoire de la Vie priv�e des
+     Fr., I, 179 ff.) Instead of the four kinds of pears
+     mentioned by de Serre (1600), there were, in 1651, about
+     400. (I, 272.) Liebaud, 1570, knew only 19 kinds of grapes;
+     de Serre, 41. (_Roquefort_, III, 29 ff.) According to the
+     "Briefen eines Verstorbenen," IV, 390, the first
+     kitchen-gardener in London had 435 kinds of salad, 240 of
+     potatoes, and 261 of pease.
+
+     And so precisely in ancient times. While the earlier Greeks
+     speak of but one oinos, even at the most sumptuous feasts
+     (compare, however, _Homer_, Il. XI, 641;) and while even in
+     the time of Demosthenes only very few kinds of wine were
+     known (_Becker_, Charicles, I, 455), _Pliny_, H. N. XIV, 13,
+     was acquainted with about 80. In this respect the moderns
+     have never returned to ancient simplicity; at least the
+     fabliau, La Bataille des Vins, introduces us to 47 kinds of
+     French wine in the 13th century. (Compare also _Wackernagel_
+     in _Haupt's_ Zeitschrift f�r deutsches Alterth., VI. 261
+     ff., and _Henderson_, History of ancient and modern Wines,
+     1824.) The Lacedemonians, with their intentional persistence
+     in a lower stage of civilization, used the same garment in
+     winter and summer (_Xenoph._, De Rep. Laced., II, 4); while
+     the contemporaries of Athen�os (III, 78 ff.) were acquainted
+     with 72 kinds of bread. With what a delicate sense for good
+     living the Romans in Caesar's time had discovered the best
+     supply places for chickens, peacocks, cranes, thunny-fish,
+     muraena, oysters and other shell-fish, chestnuts, dates,
+     etc., may be seen in _Gellius_, N. A., VII, 16. Compare
+     _Athen._, XII, 540.
+
+     In the middle age of Italy, the houses had almost always
+     three rooms: _domus_ (kitchen), _thalamus_, _solarium_.
+     (_Cibrario_, E. P. del medio Evo, III, 45.) The manors or
+     masters' houses built on the estates of Charlemagne had 3
+     and 2 rooms, sometimes only 1, and sometimes 2 rooms and 2
+     bedrooms. According to an old document of 895, a shed was
+     worth 5 sols, a well-built manor 12. (_Anthon_, Geschichte
+     der deutschen Landwirth., I, 249 ff., 311.) The Lex
+     Alamanorum, tit. 92, provided that a child, in order to be
+     considered capable of living, should have seen the roof and
+     four walls of the house! See an able essay, capable of being
+     still further developed, by _E. Herrmann,_ in which he
+     endeavors to explain the _division of use_ and of labor on
+     Darwin's hypothesis of the origin of species in the D.
+     Vierteljahrsschrift, Januar., 1867.]
+
+     [Footnote 207-5: Thus, 1785-1795, the best Silesian wool
+     cost 60, the worst 26, thalers per cwt.; in 1805, on account
+     of the great demand for cloth to make military uniforms, the
+     former cost 78, the latter 50 thalers. (_Hoffmann_,
+     Nachlass, 114.)]
+
+     [Footnote 207-6: The one large kitchen naturally requires
+     much less place, masonry, fuel, fewer utensils, etc., than
+     100 small ones. Think of the relatively large savings
+     effected by the use of one oven kept always heated! Even the
+     Lacedemonians called their meal associations pheidtia, i.
+     e., save-meals. Dainties proper can be consumed only in very
+     small portions, but cannot well be prepared in such
+     quantities. A guest at a first class Parisian restaurant
+     has, at a moderate price, his choice of 12 _pot�ges_, _24
+     hors d'oeuvres_, _15-20 entr�es de boeuf_, _20 entr�es
+     de mouton_, _30 entr�es de volaille et gibier_, _15-20
+     entr�es de veau_, _12 de p�tisserie_, _24 de poisson_, _15
+     de r�ts_, _50 entremets_, _50 desserts_; and, in addition,
+     perhaps 60 kinds of French wine alone. What more can a
+     princely table offer in this respect? Compare
+     _Brillat-Savarin_, Physiologie du Go�t, M�dit., 28.]
+
+     [Footnote 207-7: In Diocletian's time, there was purple silk
+     worth from 2-1/2 thalers to 250 thalers per pound.
+     (_Marquardt_, R�m. Privatalterth�mer, II, 122.)]
+
+     [Footnote 207-8: Concerning the application of the above
+     principle in industry and in the care of the poor, see
+     _infra_. The advantages afforded by consumption in common,
+     or the combination of use, have been enthusiastically dwelt
+     upon by _Fourier_, and the organization of his phalansteries
+     is based essentially on that principle. In these colossal
+     palaces, which, spite of all their magnificence, cost less
+     than the hundred huts of which they take the place, a ball
+     is given every evening, because it is cheaper to light one
+     large hall, in which all may congregate. The division of
+     use, or of consumption also, is here developed in a high
+     degree. When 12 persons eat at the same table they have 12
+     different kinds of cheese, 12 different kinds of soup, etc.
+     Even little children are allowed to yield to the full to
+     their gluttonous propensities, since on them depends the
+     productive activity of the so-called _s�ries passionn�es_.
+     Compare Nouveau Monde, 272. The Saint-Simonists also
+     characterize the _association universelle_ as the highest
+     goal of human development. (_Bazard_, Exposition, 144 ff.)
+     On the danger of this development to family life, see
+     _Sismondi_, Etudes I, 43.]
+
+
+SECTION CCVIII.
+
+NATURE AND KINDS OF CONSUMPTION.--NOTIONAL CONSUMPTION.
+
+By the notional consumption (_Meinungsconsumtion_), as Storch calls it,
+operated by a change of fashion, many goods lose their value, without as
+much as suffering the least change of form or leaving the merchant's
+shop. This kind of consumption, too, is exceedingly different in
+different nations. Thus, in Germany, for instance, fashions are much
+more persistent than in France.[208-1] In the most flourishing times of
+Holland, only noblemen and officers changed with the fashions, while the
+merchants and other people wore their clothes until they went to
+pieces.[208-2] In the East, fashions in clothing are very
+constant;[208-3] but the expensive custom there prevails, for a son,
+instead of moving into the house occupied by his father, to let it go to
+ruin, and to build a new one as a matter of preference. The same is true
+even in the case of royal castles. Hence, in Persia, most of the cities
+are half full of ruins, and are in time moved from one place to
+another.[208-4]
+
+The national income of a country is, on the whole, much less affected by
+a change of fashion than the separate incomes of its people. The same
+whim which lowers the value of one commodity increases the value of
+another; and what has ceased to be in fashion among the rich, becomes
+accessible, properly speaking, to the poorer classes of the community
+for the first time.[208-5] The want of varying his enjoyments is so
+peculiar to man, and so intimately connected with his capacity for
+progress, that it cannot in itself be blamed. But if this want be
+immoderately yielded to, if the well-to-do should despise every article
+which has not the charm of complete novelty, the advantages of the whole
+pattern-system, by means of which the preparation of a large number of
+articles from the same model at a relatively small cost, would be lost.
+Besides, fashion, which makes production in large quantities, for the
+satisfaction of wants that are variable and free, possible, frequently
+means even a large saving in the cost of production.[208-6]
+
+     [Footnote 208-1: The consequences of this are very important
+     to the character of French and German industry.
+     (_Junghanns_, Fortschritte des Zollvereins, I, 28, 51, 58.)
+     Rapidly as the Parisian fashions in dress make their way
+     into the provinces, their fashions in the matter of the
+     table are very slow to do so. (_Rocquefort_, Hist. de la Vie
+     priv�e des Fr., I, 88 seq.)]
+
+     [Footnote 208-2: _Sir W. Temple._ Observations on the U.
+     Provinces, ch. 6.]
+
+     [Footnote 208-3: As most persons adorn themselves for the
+     sake of the opposite sex, this invariability is caused by
+     the oriental separation of two sexes. Our manufacturers
+     would largely increase their market, if they could succeed
+     in civilizing the East in this respect. In Persia, shawls
+     are frequently inherited through many generations, and even
+     persons of distinction buy clothes which had been worn
+     before. (_Polak_, Persien, I, 153.) In China, the Minister
+     of Ceremonies rigidly provided what clothes should be worn
+     by all classes and under severe penalties. (_Davis_, The
+     Chinese, I, 352 seq.)]
+
+     [Footnote 208-4: _Jaubert_, Voyage en Perse, 1821. While
+     cities like Seleucia, Ctesiphon, Almadin, Kufa, and even
+     Bagdad, were built from the ruins of Babylon.]
+
+     [Footnote 208-5: In Moscow, merchants close their accounts
+     at Easter. Then begins a new cycle of fashions, after which
+     all that remains is sold at mock-prices. (_Kohl_, Reise,
+     98.) In Paris, there are houses which buy up everything as
+     it begins to go out of fashion and then send it into the
+     provinces and to foreign parts. Thus, there are immense
+     amounts of old clothing shipped from France and England to
+     Ireland. Hence, the latter country can have no national
+     costume appropriate to the different classes; and the
+     traveler sees with regret, crowds of Irish going to work in
+     ragged frock-coats, short trowsers and old silk hats. In
+     Prussia, many of the peasantry, in the time of Frederick the
+     Great, wore the discarded uniforms of the soldiery.]
+
+     [Footnote 208-6: _Sch�ffle_, N. Oek. _Hermann_, Staatsw.
+     Untersuchungen, II, Aufl., 100.]
+
+
+SECTION CCIX.
+
+CONSUMPTION WHICH IS THE WORK OF NATURE.
+
+The least enjoyable of all consumption (_loss-consumption_) is that
+which is the work of nature; and nature is certainly most consuming in
+the tropics. During the rainy season, in the region of the upper Ganges,
+mushrooms shoot up in every corner of the houses; books on shelves swell
+to such an extent that three occupy the place previously occupied by
+four; those left on the table get covered over with a coat of moss
+one-eighth of an inch in thickness. The saltpetre that gathers on the
+walls has to be removed every week in baskets, to keep it from eating
+into the bricks. Numberless moths devour the clothing. Schomburgk found
+that, in Guiana, iron instruments which lay on the ground during the
+rainy season became entirely useless within a few days, that silver
+coins oxydized, etc.; evidently a great obstacle in the way of the
+employment of machinery. In summer, the soil of this same region, so
+rich in roots, is so parched by the heat, that subterranean fires
+sometimes cause the most frightful destruction.
+
+In Spanish America, there are so many termites and other destructive
+insects that paper more than sixty years old is very seldom to be found
+there.[209-1]
+
+The warmer portions of the temperate zone are naturally most favorable
+to the preservation of stone monuments. Thus, for instance, in
+Persepolis, where there has been no intentional destruction, the stones
+lie so accurately superimposed the one on the other that the lines of
+junction can frequently be not even seen. The amphitheatre of Pola has
+lost in two thousand years only two lines from the angles of the
+stones.[209-2] The Elgin marble statues would certainly have lasted
+longer in Greece than they will in England. On the other hand, warm and
+dry climates have a very peculiar and exceedingly frightful species of
+nature-consumption in the locust plagues. The principal countries
+affected by such consumption are Asiatic and African Arabistan, the land
+of the Jordan and Euphrates, Asia Minor, parts of Northern India. On
+Sinai, locust plagues occur, on an average, every four or five years;
+but from 1811 to 1816, for instance, they destroyed everything each
+year. Their course is in its effects like an advancing conflagration. It
+turns the green country, frequently in a single day, into a brown
+desert; and famine and pestilence follow in its path.[209-3]
+
+The colder regions of the temperate zone are exposed to danger and
+damage from land-slides in their long series of mountains, and from
+avalanches, from quicksands in many of their plains, from floods and the
+total destruction of land along their coasts;[209-4] but, on the other
+hand, they are, relatively speaking, freest from hurricanes, earthquakes
+and volcanoes, the ravages of which no human art or foresight is
+competent to cope with. From the point of view of civilization and of
+politics there is here a great advantage. See � 36. The former maritime
+power of Venice and of Holland is closely allied to the dangers with
+which the sea continually threatened them, and which was a continual
+spur to both. But, on the other hand, the danger from earthquakes which
+always impends over South America and Farther India, must produce
+consequences similar to those of anarchy or of despotism, because of the
+uncertainty with which they surround all relations. See � 39.[209-5]
+
+     [Footnote 209-1: _Ritter_, Erdkunde VI, 180 ff; _Schomburgk_
+     in the Ausland, 1843, Nr. 274; _Humboldt_, Relation hist.,
+     I, 306; Neuspanein, IV, 379; _P�pping_, Reise, II, 197 ff.,
+     237 ff. The ant, even in Marcgrav's time, was called the
+     _rey do Brazil_.]
+
+     [Footnote 209-2: _Ritter_, Erdkunde VIII, 895; _Burger_,
+     Reise in Oberitalien, I, 7. The monuments of Nubia have
+     suffered much less from the hand of time than those of Upper
+     Egypt, because the air of the plateau is drier. The effects
+     of climate have been most severely felt in Lower Egypt,
+     where the air is most moist. (_Ritter_, I, 336, 701.) In the
+     case of wood, on the other hand, dryness may be a great
+     agent of destruction. Thus, in Thibet, wooden pillars,
+     balconies, etc., have to be protected with woolen coverings
+     to keep them from splitting. (_Turner_, Gesandtsreise,
+     German translation, 393 ff.)]
+
+     [Footnote 209-3: Compare _Ritter_, Erdkunde, VIII, 789-815,
+     especially the beautiful collection of passages from the
+     Bible bearing on the locust plague, 812 ff. _Pliny_, H. N.,
+     XI, 85. _Volney_, Voyages en _Syrie_, I, 305. For account of
+     an invasion of locusts, which, in 1835, covered half a
+     square mile, four inches in thickness, see _v. Wrede_, R. in
+     Hadhrammaut, 202. It is estimated that, in England, the
+     destruction caused by rats, mice, insects, etc., amounts to
+     ten shillings an acre per year; i. e., to �10,000,000 per
+     annum. (_Dingler_, Polyt. Journal, XXX, 237.)]
+
+     [Footnote 209-4: Origin of the gulf of Dollart in Friesland,
+     2-1/2 square miles in area between 1177 and 1287; and of
+     Biesboch of 2 square miles in 1421. On the repeated
+     destruction of lands in Schleswig by inundations, see
+     _Thaarup_, D�nische Statistik, I, 180 seq. It is a
+     remarkable fact that in relation to the Mediterranean,
+     _Strabo_, VII, 293, considers all such accounts fables.]
+
+     [Footnote 209-5: As to how the grandeur and
+     irresistibleness, etc. of this nature-consumption in the
+     tropics leads men to superstition and the indulgence of wild
+     fancies, see _Buckle_, History of Civilization in England,
+     1859, I, 102 ff. Since the conquest of Chili, sixteen
+     earthquakes, which have destroyed large cities totally or in
+     part, have been recorded.]
+
+
+SECTION CCX.
+
+NECESSITY OF CONSIDERING WHAT IS REALLY CONSUMED.
+
+Whenever there is question of consumption, it is necessary to examine
+with rigid scrutiny, what it is that has been really consumed; that is,
+that has lost in utility. The person, for instance, who pays twenty
+dollars for a coat, has consumed that amount of capital only when the
+coat has been worn out.[210-1] What is called the consumption of one's
+income in advance is nothing but the consumption of a portion of capital
+which the consuming party intends to make good from his future
+income.[210-2] Fixed capital, too, can certainly be directly consumed;
+for instance, when the owner of a house treats the entire rent he
+receives from it as net income, makes no repairs, and no savings to put
+up a new building at some future time. As a rule, however, the owner of
+fixed capital must, in order to consume it, first exchange it against
+circulating capital. Thus the prodigality and dissipation, especially of
+courts of absolute princes, have found numerous defenders who have
+claimed that they are uninjurious, provided only the money spent in
+extravagance remained in the country.[210-3] The prodigality itself,
+that is, the unnecessary destruction of wealth is not, on that account,
+any the less disastrous.[210-4] If, for instance, there are fire-works
+to the amount of 10,000 dollars, manufactured exclusively by the workmen
+of the country, ordered for a gala day; the night before they are used
+for purposes of display, the national wealth embraces two separate
+amounts, aggregating 20,000 dollars; that is, 10,000 dollars in silver
+and 10,000 in rockets, etc. The day after, the 10,000 in silver are
+indeed still in existence, but of the 10,000 in rockets, etc., there is
+nothing left. If the order had been made from a foreign country the
+reverse would have been the case, the silver stores of the people would
+have been diminished, but their supply of powder would remain intact.
+
+In a similar way, there is occasion given for the greatest
+misunderstanding when people so frequently speak of producers and
+consumers as if they were two different classes of people. Every man is
+a consumer of many kinds of goods; but, at the same time, he is a
+producer, unless he be a child, an invalid, a robber, a pick-pocket,
+etc.[210-5] At the same time, Bastiat is right in saying that in case of
+doubt when the interests of production and of consumption come in
+conflict, the state, as the representative of the aggregate interest,
+should range itself on the side of the latter. If we carry things on
+both sides to their extremest consequences, the self-seeking desire of
+consumers would lead to the utmost cheapness, that is, to universal
+superfluity, and the self-seeking wish of producers to the utmost
+dearness, that is, to universal want.[210-6]
+
+     [Footnote 210-1: Compare _Mirabeau_, Philosophie rurale, ch.
+     1; _Prittwitz_; Kunst reich zu werden, 474.]
+
+     [Footnote 210-2: A very important principle for the
+     understanding of the real effects of the spending of a state
+     loan!]
+
+     [Footnote 210-3: In this way _Voltaire_, Si�cle de Louis
+     XIV., ch. 30, excuses for instance the extravagant (?)
+     buildings at Versailles; and in a very similar way Catharine
+     II. expressed herself in speaking to the Prince de Ligne:
+     M�moires et M�langes par le Prince de Ligne, 1827, II, 358.
+     _v. Schr�der_ even thinks that the Prince might consume as
+     much and even more than "the entire capital" of the country
+     amounted to; only, he would have him "let it get quickly
+     among the people again." He is also in favor of the utmost
+     splendor in dress, provided the public see to it that
+     nothing was worn in the country which was not made in the
+     country. (F�rstl. Schatz- u. Rentkammer, 47, 172.) Similarly
+     even _Botero_, Della Ragion di Stato VII, 85; VIII, 191; and
+     recently _v. Struensee_, Abhandlungen I, 190. The principle
+     of Polycrates in _Herodotus_ is nearly to the same effect.
+     Compare, per contra, _Ferguson_, Hist. of Civil Society, V,
+     5.]
+
+     [Footnote 210-4: With the exception of the profit made by
+     the manufacturers.]
+
+     [Footnote 210-5: Strikingly ignored by _Sismondi_, N. P.,
+     IV, ch. II.]
+
+     [Footnote 210-6: _Bastiat_, Sophismes �conomiques, 1847, ch.
+     IV. Everything which, in the long run, either promotes or
+     injures production, "steps over the producer and turns in
+     the end to the gain or loss of the consumer." Only for this
+     principle, inequality and dissensions among men would keep
+     growing perpetually. All that the systems of Saint Simonism
+     and communism contain that is relatively true is thus
+     realized.]
+
+
+SECTION CCXI.
+
+NATURE AND KINDS OF CONSUMPTION.--PRODUCTIVE CONSUMPTION.
+
+There is no production possible without consumption. The embodiment of a
+special utility into any substance is a limitation of its general
+utility. Thus, for instance, when corn is baked into bread, it can no
+longer be used for the manufacture of brandy or of starch.[211-1]
+
+When, therefore, consumption is a condition (outlay) to production it is
+called productive (reproductive).[211-2] Here, indeed, the form of the
+consumed goods is destroyed, but the value of the goods lives on in the
+new product.
+
+There are different degrees of productiveness in consumption also. Thus,
+to a scholar, his outlay for books in his own branch is immediately
+productive; but nevertheless, books in departments of literature very
+remote from his own, pleasure trips, etc. may serve as nutrition and as
+a stimulus to his mind. According to � 52, we are compelled to consider
+all consumption productive which constitutes a necessary means towards
+the satisfaction of a real economic want. We may, indeed, distinguish
+between productive consumption in aid of material goods, of personal
+goods and useful relations; but in estimating the productiveness of
+these different sorts of consumption we are concerned not so much with
+the nature of the consumption as the results in relation to the nation's
+wants. The powder that explodes when a powder magazine burns is consumed
+unproductively; but the powder shot away in war may be productively
+consumed just as that used to explode a mine may be unproductively
+consumed; for instance, when the war is a just and victorious one and
+the mining enterprise has failed.[211-3]
+
+The maintenance or support of those workmen whom they themselves
+acknowledge to be productive is presumably accounted productive
+consumption by all political economists. Why not, therefore, the cost of
+supporting and educating our children, who, it is to be hoped, will grow
+up later to be productive workmen. Man's labor-power is, doubtless, one
+of the greatest of all economic goods. But without the means of
+subsistence, it would die out in a few days. Hence we may, and even
+without an atomistic enumeration of the individual services and products
+of labor, consider the continued duration of that labor-power itself as
+the continued duration of the value of the consumed means of
+subsistence.[211-4]
+
+     [Footnote 211-1: Even when air-dried bricks are made from
+     water and clay which cost nothing; when purely occupatory
+     work is done, and purely intellectual labor performed, some
+     consumption of the means of subsistence by the workmen is
+     always necessary.]
+
+     [Footnote 211-2: Chr�matistikai in contradistinction to
+     anal�tikai, according to _Plato_, De Rep., VIII, 559.
+     Temporary consumption. (_Umpfenbach._)]
+
+     [Footnote 211-3: _Storch_, Handbuch, II, 450.]
+
+     [Footnote 211-4: Against the difference formerly usually
+     assumed between productive and unproductive consumption, see
+     _Jacob_, Grunds�tze der Nat. Oek., II, 530. It is because of
+     a too narrow view that _Hermann_ (II, Aufl., 311), instead
+     of reproductive consumption, speaks of technic consumption.]
+
+
+SECTION CCXII.
+
+UNPRODUCTIVE CONSUMPTION.
+
+Moreover, unproductive consumption embraces not only every economic
+loss, every outlay for injurious purposes,[212-1] but also every
+superfluous outlay for useful purposes.[212-2] Yet, not to err in our
+classification here, it is necessary to possess the impartiality and
+many-sidedness of the historian, which enable one to put himself in the
+place of others and feel after them as they felt. The man, for instance,
+who, in cities like Regensburg and especially Rome, sees numberless
+churches often, so to speak, elbowing one another, cannot fail to
+recognize the difference between the buildings of to-day for business,
+political, educational and recreative purposes, and the medieval, for
+the satisfaction of spiritual wants. The latter also may, in their own
+sphere, and in their own time, have, as a rule, operated productively,
+as the former operate, often enough, by way of exception unproductively;
+as in the case of railway and canal speculations which have ended in
+failure. It would be difficult to decide between the relative value of
+the two kinds of wants, because the parties to the controversy do not,
+for the most part, share the want (_Bed�rfniss_) of their respective
+opponents, frequently do not even understand it, and therefore despise
+it. Thus, there are semi-barbarous nations, who can entertain that
+respect for the laws which is necessary even from an economic point of
+view only to the extent that they see the person whose duty it is to
+cause them to be observed seated on a throne and surrounded by
+impressive splendor. Hence, such splendor here could not be considered
+merely unproductive consumption.[212-3]
+
+We must, moreover, remark in this place as we did above, � 54, that it
+is easiest to pass the boundary line between productive and unproductive
+consumption in personal services. In 1830, the expenses of the state, in
+Spain, amounted to 897,000,000 of reals per annum; the outlay of
+municipal corporations, to 410,000,000, and that for external purposes
+of religion, 1,680,000,000. (_Borrego._) This is certainly no salutary
+proportion; but it is scarcely evidence of a worse economic condition
+than the fact that in Prussia it would require a basin one Prussian mile
+in length, thirty-three and eight-tenths feet broad, and ten feet deep
+to hold all the brandy drunk in the country (_Dieterici_); or this
+other, that the British people spend yearly �68,000,000 sterling for
+taxes and �100,000,000 yearly for spirituous liquors.[212-4] Berkeley
+rightly says that the course practiced in Ireland, with its famishing
+proletarian population, of exporting the means of subsistence and
+exchanging them against delicate wines, etc., is as if a mother should
+sell her children's bread to buy dainties and finery for herself with
+the proceeds.[212-5] [212-6]
+
+     [Footnote 212-1: Thus, for instance, food which spoils
+     unused, and food which is stolen and which puts a thief in a
+     condition to preserve his strength to steal still more.]
+
+     [Footnote 212-2: So far _Senior_, Outlines, 66, is right:
+     the richer a nation or a man becomes, the greater does the
+     national or personal productive consumption become.]
+
+     [Footnote 212-3: Such gigantic constructions as the palaces,
+     pyramids, etc. of Egypt, Mexico or Peru are a certain sign
+     of the oppression of the people by rulers, priests or
+     nobles. One of the Egyptian pyramids is said to have
+     occupied 360,000 men for twenty years. (_Diodor._, I, 63;
+     _Herodot._, II, 175; _Prescott_, History of Mexico, I, 153,
+     History of Peru, I, 18.)]
+
+     [Footnote 212-4: Edinburg Rev., Apr., 1873, 399.]
+
+     [Footnote 212-5: _Berkeley_, Querist, 168, 175, says that
+     the national wants should be the guiding rule of commerce,
+     and that besides, the most pressing wants of the majority
+     should be first considered.]
+
+     [Footnote 212-6: _Ricardo_, Principles, p. 475, was of
+     opinion that an outlay of the national or of private income
+     in the payment of personal services increased the demand for
+     labor and the wages of labor in a higher degree than an
+     equal outlay for material things. The error at the
+     foundation of this is well refuted by _Senior_, Outlines,
+     160 ff.
+
+     The first to zealously advocate and treat the theory of
+     productive consumption was _J. B. Say_, Trait�, III, ch. 2,
+     seq.; Cours pratique, II, 265. But the germs of the doctrine
+     are to be found in _Dutot_, R�flexions politiques sur le
+     Commerce et les Finances, 1738, 974, _�d_. Daire. His
+     distinctions are in part drawn with great accuracy. Thus he
+     says that, among others, a manufacturer of cloth,
+     productively consumes the results of his workmen, but that
+     the workmen themselves who exchange these results for bread,
+     consume the latter unproductively. _Say_ is guilty of the
+     inconsistency of claiming that only that consumption is
+     productive which contributes directly to the creation of
+     material exchangeable goods, spite of the fact that he gave
+     the productiveness of labor a much wider scope. _Rau_,
+     Lehrbuch, I, � 102 ff., 323 seq., is more consistent in so
+     far as he applies the same limitation in both cases.
+     (Compare also � 333, 336.) _Hermann_, Staatsw.
+     Untersuchungen, 170 seq., 231 ff., would prefer to see the
+     idea of productive consumption banished from the science,
+     for the reason that if the value of the thing alleged to be
+     consumed continues, there can be no such thing as its
+     consumption. But, I would rejoin: in a good national
+     economy, there would be, according to this, scarcely any
+     consumption whatever, because the aggregate value of that
+     which I have called above productive consumption is
+     unquestionably preserved, and continues in the aggregate
+     value of the national products.
+
+     Productive consumption is ultimately a stage of production,
+     just as production itself is ultimately a means to an end,
+     consumption, and therefore a preparation for the latter.
+     Both ideas may be rigorously kept apart from each other,
+     just as the expenses and receipts of a private business man,
+     who makes a great portion of his outlay simply with the
+     intention of reaping receipts therefrom, may be. Every one
+     desires his production to be as large as possible, and his
+     productive consumption, so far it does not fail of its
+     object, as small as possible. _Riedel_ rightly says that the
+     theory of reproductive consumption serves Political Economy
+     as the bridge which closes the circle formed by the action
+     of production, distribution and consumption. (Nat. Oek. III,
+     49.) One of the chief fore-runners of the view we advocate
+     was _McCulloch_, Principles, IV, 3 ff. _Gr. Soden_, Nat.
+     Oek., distinguishes economic consumption, un-economic and
+     anti-economic consumption. (Nat. Oek., I, 147.)]
+
+
+SECTION CCXIII.
+
+EQUILIBRIUM BETWEEN PRODUCTION AND CONSUMPTION.
+
+In all cases economic production is a means to some kind of consumption
+as its end.[213-1] The sharpest spur to productive activity is the
+feeling of want.[213-2] "Want teaches art, want teaches prayer, blessed
+want!" Well too has it been said: "Necessity is the mother of
+invention!" Leaving mere animals out of consideration,[213-3] those men
+who experience very few wants, with the exception of some rare and
+highly intellectual natures, prefer rest to labor. Therefore, when
+European merchants desire to engage in trade with a savage nation they
+have uniformly to begin by sending them their nails, axes,
+looking-glasses, brandy, etc., as gifts. Not until the savage has
+experienced a new enjoyment does the want of continuing it make itself
+felt; or is he prepared to produce for purposes of commerce.[213-4] In a
+state of normal development, the complete and continuing satisfaction of
+the coarser wants should constitute the foundation for the
+higher.[213-5]
+
+     [Footnote 213-1: We should not, indeed, say, on this
+     account, with _Adam Smith_, IV, ch. 8, that "consumption is
+     the sole end and purpose of all production," for labor and
+     saving, besides their economic object have a higher one,
+     imperishable and personal. Compare _Knies_, Polit. Oek. 129,
+     and _supra_, � 30.]
+
+     [Footnote 213-2: According to _Sir F. M. Eden_, State of the
+     Poor, I, 254, it is one of the most unambiguous symptoms of
+     advanced civilization when families eat regularly at the
+     same table; so also sleeping in real beds. "Bed and board!"
+     It is said that the regularity of meal times was introduced
+     among the Greeks by Palamedes. _Athen._ I, 11, after
+     _�schylus_.]
+
+     [Footnote 213-3: Hibernating animals have supplies and
+     dwellings, that is something analogous to capital.]
+
+     [Footnote 213-4: This advance is generally observed to be
+     introduced by the _jus fortioris_. _Steuart_, Principles I,
+     ch. 7. (Compare �� 45-6-8.) In this way, the earliest
+     oriental despotisms have unwittingly been of great service
+     to mankind. What the sultan here accomplished with his few
+     favorites was done in the lower stages of civilization of
+     the west by the aristocracy of great vassals, in a manner
+     more worthy of human beings, and in a much more stable form.
+     (_J. S. Mill_, Principles I, 14 ff.)]
+
+     [Footnote 213-5: _Banfield_, Organization of Industry, 1848,
+     11.]
+
+
+SECTION CCXIV.
+
+CAUSES OF AN INCREASE OF PRODUCTION.
+
+Only when wants increase does production increase also.[214-1] The old
+maxim: _Si quem volueris esse divitem, non est quod augeas divitias, sed
+minuas cupiditates (Seneca)_, would, if consistently carried out, have
+thwarted the advance of civilization and frustrated the improvement of
+man's condition. On the other hand, most political economists, without
+more ado, assume that individuals, and still more nations, are wont to
+extend the aggregate of their enjoyments just as far as there is a
+possibility of satisfying their wants. But they forget here how great a
+part is played in the world, as men are constituted, by the principle of
+inertia.[214-2] At the first blush, what seems more natural than that
+the less labor a people need employ to obtain the most indispensable
+means of subsistence, the more time and taste would remain to them to
+satisfy their more refined wants. According to this, we should expect to
+discover a more refined civilization, especially, in intellectual
+matters, in the earliest periods, when population is small, when land
+exists in excess and is not yet exhausted. But, in reality, precisely
+the reverse is the case. In the earliest stages of civilization
+accessible to our observation, we find materialism prevailing in its
+coarsest form, and life absorbed entirely by the lowest physical wants.
+(Tropical lands.) Where bread grows on the trees, and one needs only to
+reach out his hand and pluck it; where all one wants to cover his
+nakedness is a few palm leaves, ordinary souls find no incentive to an
+ant-like activity, or to a union among themselves for economic
+purposes.[214-3] When a Mexican countryman earns enough to keep himself
+and his family from absolute want by two days' labor in a week, he idles
+away the other five. It never occurs to him that he might devote his
+leisure time to putting his hut or his household furniture, etc., in
+better shape. The necessity of foresight even is almost unknown; and in
+the most luxuriantly fertile country in the world, a bad harvest
+immediately leads to the most frightful famine. Humboldt was assured
+that there was no hope of making the people more industrious except by
+the destruction of the banana plantations.[214-4] But, indeed, there
+would be little gained by such compulsory industry. To work for any
+other end than satiation, it is necessary that man should feel wants
+beyond the want created by mere hunger.[214-5] There are so many
+conditions precedent (and mutually limiting one another) to a general
+advance in civilization, that such an advance can, as a rule, take place
+only very gradually. Let us suppose, for instance, a single Indian in
+Mexico, perfectly willing to work six days in the week, and in this way
+to cultivate a piece of land three times as great as his fellow Indians.
+Where would he get the land? He would, for a time find no purchasers for
+his surplus, and therefore not be in a condition to pay the landlord as
+much as the latter hitherto received from the pasturage alone. Not until
+cities are built and offer the rural population the products of industry
+in exchange for theirs, can they be incited to, or become capable of
+effecting a better cultivation of the land. This incentive and this
+capacity, are inseparably connected with each other. Where the
+agricultural population produce no real surplus, but after the fashion
+of medieval times, produce everything they want themselves, and consume
+all their own products with the exception of the part paid to the state
+as a tax, there can scarcely be an industrial class, a commercial class,
+or a class devoted to science, art, etc. And, conversely, it is only the
+higher civilization which finds expression in the development of these
+classes, that, by a more skillful guidance of the national labor, can
+call forth its productiveness to an extent sufficient to yield a
+considerable surplus of agricultural commodities over and above the most
+immediate wants of the cultivators of the soil themselves. Hence, we
+find that precisely in those countries which are most advanced in the
+economic sense, there is relatively the smallest number of men engaged
+in agriculture, and relatively the largest number in production of a
+finer kind.[214-6] It is here as in private housekeeping: the poorer a
+man is, the greater is the portion of his income which he is wont to lay
+out for indispensable necessities.[214-7] [214-8]
+
+     [Footnote 214-1: There is obviously here supposed besides
+     the want thus increased, a capacity for development. Thus,
+     for instance, the inhabitants of New Zealand brought with
+     them, in what concerns clothing, dwellings, etc., the
+     customs of a tropical into a colder country, and did not
+     understand how to oppose the rigor of the new climate,
+     except by building immoderately large fires, until they
+     became acquainted with European teachers. (Edinb. Review,
+     April, 1850, 466.)]
+
+     [Footnote 214-2: Compare _R. S. Zachari�_, Vierzig B�cher
+     vom Staate, VII, 37. Men in the lower stages of civilization
+     cherish a greater contempt for those more advanced than they
+     are themselves visited with by the latter. Thus it was
+     customary for the Siberian hunting races to utter a
+     malediction: May your enemy live like a Tartar, and have the
+     folly to engage in the breeding of cattle. (_Abulghazi
+     Bahadur_, Histoire g�n�alogique des Tartares.) Nomadic races
+     look upon the inhabitants of cities as for the most part
+     prisoners.]
+
+     [Footnote 214-3: The "happy, contented negroes," as Lord
+     John Russel called them, work in Jamaica, on an average,
+     only one hour a day since their emancipation. (Colonial
+     Magazine, Nov. 1849, 458.) Egypt, India, etc., from time
+     immemorial, the classic lands of monkish laziness. Compare
+     _Hume_, Discourses, No. 1, on Commerce. On the other hand,
+     the person who has six months before him for which he must
+     labor and lay up a store, if he would not famish or freeze,
+     must necessarily be active and frugal; and there are other
+     virtues which go along with these. (_List_, System der
+     polit. Oek., I, 304.) According to _Humboldt_, the change of
+     seasons compels man to get accustomed to different kinds of
+     food, and thus fits him to migrate. The inhabitants of
+     tropical countries are, on the other hand, like
+     caterpillars, which cannot emigrate nor be made to emigrate,
+     on account of the uniform nature of their food.]
+
+     [Footnote 214-4: _Humboldt_, N. Espagne, IV, ch. 9, II, ch.
+     5. Similarly among the coarser Malayan tribes, the facility
+     with which fish is caught and the cheapness of sago are the
+     principal causes of their inertia and of their unprogressive
+     uncivilization. (_Crawfurd._)]
+
+     [Footnote 214-5: _Le travail de la faim est toujours born�
+     comme elle. (Raynal.)_]
+
+     [Footnote 214-6: Compare _Adam Smith_, I, ch. 11, 2;
+     _supra_, � 54. In Russia, nearly 80 per cent. of the
+     population live immediately from agriculture; in Great
+     Britain, in 1835, only 35; in 1821, only 33; in 1831, only
+     31-1/2; in 1841, only 26 per cent. (_Porter._) According to
+     _Marshall_, there were, in 1831, in British Europe,
+     1,116,000 persons who lived from their rents, etc. In
+     Ireland, there were, in 1831, over 65 per cent. of the
+     population engaged in agriculture (_Porter_); in 1841, even
+     66 per cent.]
+
+     [Footnote 214-7: In Paris, in 1834, the average income per
+     capita was estimated to be 1,029.9 francs, of which 46
+     francs were paid out for service; 55.7 for education; 11.5
+     for physicians' services, etc.; 7 on theatrical shows; 36
+     for washing; 13.6 for public purposes. (_Dingler_, Polyt.
+     Journal, LIII, 464.) According to _Ducp�tiaux_, Budgets
+     �conomiques des Classes ouvri�res en Belgique, 1855, and
+     _Engel_, S�chs. Statist. Ztschr., 1857, 170, the
+     proportional percentage of family expenses for the following
+     articles of consumption is:
+
+     =======================+=========================================
+                            |             EXPENSES OF
+                            +--------------------+----------+---------
+                            |  _a laborer's_     | _family_ |_a well-_
+                            |  _family_          | _of the_ |_to-do_
+     _Consumption Purpose._ |  _in comfortable_  | _middle_ |_family._
+                            |  _circumstances._  | _class._ |
+                            +----------+---------+----------+---------
+                            |    _In_  |  _In_   |  _In_    |  _In_
+                            |_Belgium._|_Saxony._|_Saxony._ |_Saxony._
+                            |   _per_  |  _per_  |  _per_   |  _per_
+                            |  _cent._ | _cent._ | _cent._  | _cent._
+     -----------------------+----------+---------+----------+---------
+     Food,                  |  61 \    | 62 \    |  55 \    |  50 \
+     Clothing,              |  15 }    | 16 } 95 |  18 } 90 |  18 } 85
+     Shelter,               |  10 } 95 | 12 }    |  12 }    |  12 }
+     Heating and lighting,  |   5 }    |  5 /    |   5 /    |   5 /
+     Utensils and tools,    |   4 /    |         |          |
+                            |          |         |          |
+     Education, instruction,|   2 \    |  2 \    | 3.5 \    | 5.5 \
+     Public security,       |   1 }  5 |  1 }  5 | 2   } 10 | 3   } 15
+     Sanitary purposes,     |   1 }    |  1 }    | 2   }    | 3   }
+     Personal services,     |   1 /    |  1 /    | 2.5 /    | 3.5 /
+     =======================+==========+=========+==========+=========
+
+     Hence _Engel_ thinks that when the articles of food,
+     clothing, shelter, heating and lighting have become dearer
+     by 50 per cent., and other wants have not, and it is desired
+     to proportionately increase the salaries of officials,
+     salaries of 300, 600 and 1,000 thalers should be raised to
+     427.5, 800 and 1,275 thalers respectively. (Preuss. Statist.
+     Zeitschr., 1875.) _E. Herrmann_, Pricipien der Wirthsch.,
+     106, estimates that in all Europe, 45.6 of all consumption
+     is for food, 13.2 for clothing, 5.7 for shelter, 4.6 for
+     furnishing, 5.3 for heating and lighting, 2.6 for tools and
+     utensils, 13.3 for public security, 6.6 for purposes of
+     recreation. Compare _Leplay_, Les Ouvriers Europ�ens, 1855,
+     and _v. Prittwitz_, Kunst reich zu werden, 487 ff. The
+     expenses for shelter, service and sociability are specially
+     apt to increase with an increase of income.]
+
+     [Footnote 214-8: The necessity of an equilibrium between
+     production and consumption was pretty clear to many of the
+     older political economists. Thus, for instance, _Petty_
+     calls the coarse absence of the feeling of higher wants
+     among the Irish the chief cause of their idleness and
+     poverty. Similarly _Temple_, Observations on the N.
+     Provinces, ch. 6, in which Ireland and Holland are compared
+     in this relation. _North_, Discourses upon Trade, 14 seq.;
+     Potscr. _Roscher_, Zur Geschichte der english.
+     Volswirthschaftslehre, 83, 91, 127 ff. _Becher_, polit.
+     Discurs., 1668, 17 ff., was of opinion that the principal
+     cause keeping the three great estates together, the very
+     soul of their connection, was consumption. Hence the peasant
+     lived from the tradesman, and the tradesman from the
+     merchant. (_Boisguillebert_, D�tail de la France, I, 4, II,
+     9, 21.) According to _Berkeley_, Querist, No. 20, 107, the
+     awakening of wants is the most probable way to lead a people
+     to industry. And so _Hume_, loc. cit., _Forbonnais_,
+     El�ments du Commerce, I, 364. The Physiocrates were in favor
+     of active consumption. Thus _Quesnay_, Maximes g�n�rales, 21
+     seq.; _Letrosne_, De l'Inter�t social, I, 12. _La
+     reproduction et la consommation sont r�ciproquement la
+     mesure l'une de l'autre._ Some of them considered
+     consumption even as the chief thing (_Mirabeau_, Philosophie
+     rurale, ch. 1), which could never be too great. Further,
+     _Verri_, Meditazioni, I, 1-4. _B�sch_, Geldumlauf, III, 11
+     ff.
+
+     The moderns have frequently inequitably neglected the
+     doctrine of consumption. Thus it appears to be a very
+     characteristic fact that in _Adam Smith's_ great book, there
+     is no division bearing the title "consumption," and in the
+     Basel edition of 1801, that word does not occur in the
+     index. _Droz_ says that in reading the works of certain of
+     his followers, one might think that products were not made
+     for the sake of man, but man for their sake. But, on the
+     other hand, there came a strong reaction with _Lauderdale_,
+     Inquiry, ch. 5; _Sismondi_, N. Principes, L., II, passim;
+     _Ganilh_, Dictionnaire Analytique, 93 ff., 159 ff.; but
+     especially, and with important scientific discoveries,
+     _Malthus_, Principles, B. II. _St. Chamans_, Nouvel Essai
+     sur la Richesse des Nations, 1824, is an exaggerated
+     caricature of the theory of consumption. For instance, he
+     resolves the income of individuals into foreign demand or
+     the demand of strangers (29); considers the first condition
+     of public credit to lie in the making of outlay (32); and
+     even calls entirely idle consumers productive, for the
+     reason that they elevate by their demand a _utilit�
+     possible_, to the dignity of a _utilit� r�elle_ (286 ff.)
+     The view advocated by Mirabeau, and referred to above, again
+     represented by _E. Solly_, Considerations on Political
+     Economy, 1814, and by _Weishaupt_, Ueb. die Staatsausgaben
+     und Auflagen, 1819. And so according to _Carey_, Principles,
+     ch. 35, � 6, the real difficulty does not lie in production,
+     but in finding a purchaser for the products. But he
+     overlooks the fact here that only the possessor of other
+     products can appear as a purchaser. From another side, most
+     socialists think almost exclusively of the wants of men, and
+     scarcely consider it worth their while to pay any attention
+     to the means of satisfying them.]
+
+
+SECTION CCXV.
+
+NECESSITY OF THE PROPER SIMULTANEOUS DEVELOPMENT OF PRODUCTION AND
+CONSUMPTION.
+
+Hence, one of the most essential conditions of a prosperous national
+economy is that the development of consumption should keep equal pace
+with that of production, and supply with demand.[215-1] The growth of a
+nation's economy naturally depends on this: that production should
+always be, so to speak, one step in advance of consumption, just as the
+organism of the animal body grows from the fact that the secretions
+always amount to something less than the amount of additional nutrition.
+A preponderance of secretions would here be disease; but so would be a
+too great preponderance of nutrition. Now, the politico-economical
+disease which is produced by the lagging behind of consumption and by
+the supply being much in advance of the demand, is called a commercial
+(market) crisis. Its immediate consequence is, that for a great many
+commodities produced, no purchasers can be found. The effect of this is
+naturally to lower prices. The profit of capital and wages diminish. A
+transition into another branch of production, not overcrowded, is either
+not possible at all or is attended with care, great difficulties and
+loss. It is very seldom that all these disadvantages are confined to the
+one branch in which the disease had its original seat. For, since the
+resources of the one class of producers have diminished, they cannot
+purchase as much from others as usual. The most distant members of the
+politico-economic body may be thereby affected.[215-2]
+
+     [Footnote 215-1: _Boisguillebert_ lays the greatest weight
+     on the harmony of the different branches of commerce.
+     _L'�quilibre l'unique conservateur de l'opulence g�n�rale_;
+     this depends on there being always as many sales as
+     purchases. The moment one link in the great chain suffers,
+     all the others sympathise. Hence he opposes all taxation of
+     commodities which would destroy this harmony. (Nature des
+     Richesses, ch. 4, 5, 6; Factum de la France, ch. 4; Tr. des
+     Grains I, 1.) _Canard_ Principes d'E. politique, ch. 6,
+     compares the relation between production and consumption in
+     national economy with that between arteries and veins in the
+     animal body. On the other hand, _Sismondi_, N. Principes I,
+     381, describes the bewilderment and want which are wont to
+     arise when one wheel of the great politico-economical
+     machine turns round more rapidly than the others.]
+
+     [Footnote 215-2: Thus, for instance, an occasional
+     stagnation of the cotton factories of Lancashire has
+     frequently the effect of "making all England seem like a
+     sick man twisting and turning on his bed of pain." (_L.
+     Faucher._)]
+
+
+SECTION CCXVI.
+
+COMMERCIAL CRISES IN GENERAL.--A GENERAL GLUT.
+
+The greater number of such crises are doubtless special; that is, it is
+only in some branches of trade that supply outweighs demand. Most
+theorists deny the possibility of a general glut, although many
+practitioners stubbornly maintain it.[216-1] J. B. Say relies upon the
+principle that in the sale of products, as contradistinguished from
+gifts, inheritances, etc., payment can always be made only in other
+products. If, therefore, in one branch there be so much supplied that
+the price declines; as a matter of course, the commodity wanted in
+exchange will command all the more, and, therefore, have a better vent.
+In the years 1812 and 1813, for instance, it was almost impossible to
+find a market for dry goods and other similar products. Merchants
+everywhere complained that nothing could be sold. At the same time,
+however, corn, meat and colonial products were very dear, and,
+therefore, paid a large profit to those who supplied them.[216-2] Every
+producer who wants to sell anything brings a demand into the market
+exactly corresponding to his supply. (_J. Mill._) Every seller is _ex vi
+termini_ also a buyer; if, therefore production is doubled, purchasing
+power is also doubled. (_J. S. Mill._) Supply and demand are in the last
+analysis, really, only two different sides of one and the same
+transaction. And as long as we see men badly fed, badly clothed, etc.,
+so long, strictly speaking, shall we be scarcely able to say that too
+much food or too much clothing has been produced.[216-3]
+
+     [Footnote 216-1: When those engaged in industrial pursuits
+     speak of a lasting and ever-growing over-production, they
+     have generally no other reason for their complaints than the
+     declining of the rate of interest and of the undertaker's
+     profit which always accompany an advance in civilization.
+     Compare _J. S. Mill_, Principles, III, ch. 14, 4. However,
+     the same author, I, 403, admits the possibility of something
+     similar to a general over-production.]
+
+     [Footnote 216-2: _Say's_ celebrated Th�orie des D�bouch�s,
+     called by McCulloch his chief merit, Trait�, I, ch. 15. At
+     about the same time the same theory was developed by _J.
+     Mill_, Commerce defended, 1808. _Ricardo's_ express
+     adhesion, Principles, ch. 21. Important germs of the theory
+     may be traced much farther back: _M�lon_, Essai politique
+     sur le Commerce, 1734, ch. 2; _Tucker_, On the
+     Naturalization Bill, 13; Sketch of the Advance and Decline
+     of Nations, 1795, 182.]
+
+     [Footnote 216-3: Precisely the same commercial crisis, that
+     of 1817 seq., which more than anything else led _Sismondi_
+     to the conclusion that too much had been produced in all
+     branches of trade, may most readily be reduced to _Say's_
+     theory.
+
+     There was then a complaint, not only in Europe but also in
+     America, Hindoostan, South Africa and Australia, of the
+     unsaleableness of goods, overfull stores, etc.; but this,
+     when more closely examined, was found to be true only of
+     manufactured articles and raw material, of clothing and
+     objects of luxury; while the coarser means of subsistence
+     found an excellent market, and were sold even at the highest
+     prices. Hence, in this case, there was by no means any such
+     thing as over-production. The trouble was that in the
+     cultivation of corn and other similar products, too little
+     was produced. There was a bad harvest even in 1816.
+
+     The most important authorities in favor of the possibility
+     of a general glut are _Sismondi_, N. Principes, IV, ch. 4,
+     and in the Revue encyclop�dique, Mai, 1824: Sur la Balance
+     des Consommations avec les Productions. Opposed by Say in
+     the same periodical (Juilliet, 1824); where the controversy
+     was afterwards reopened in June and July, 1827, by
+     _Sismondi_ and _Dunoyer_. Compare Etudes, vol. I; _Ganilh_,
+     Th�orie, II, 348 ff.; _Malthus_, Principles, II, ch. 1, 8.
+     Compare _Rau_, _Malthus_ and Say, �ber die Ursachen der
+     jetzigen Handelsstockung, 1821. _Malthus'_ views were
+     surpassed by _Chalmers_, On Political Economy in Connexion
+     with the moral State of Society, 1832. But even _Malthus_
+     himself in his Definitions, ch. 10, No. 55, later, so
+     defined a "general glut" that there could be no longer
+     question of his holding to its universality. For an
+     impartial criticism, see especially _Hermann_, Staatsw.
+     Untersuchungen, 251, and _M. Chevalier_, Cours, 1, Le�on,
+     3.]
+
+
+SECTION CCXVII.
+
+COMMERCIAL CRISES IN GENERAL.
+
+All these allegations are undoubtedly true, in so far as the whole world
+is considered one great economic system, and the aggregate of all goods,
+including the medium of circulation, is borne in mind. The consolation
+which might otherwise lie herein is made indeed to some extent
+unrealizable by these conditions. It must not be forgotten in practice
+that men are actuated by other motives than that of consuming as much as
+possible.[217-1] As men are constituted, the full consciousness of this
+possibility is not always found in connection with the mere power to do,
+to say nothing of the will to do.[217-2] There are, everywhere, certain
+consumption-customs corresponding with the distribution of the national
+income. Every great and sudden change in the latter is therefore wont to
+produce a great glut of the market.[217-3] The party who in such case
+wins, is not wont to extend his consumption as rapidly as the loser has
+to curtail his; partly for the reason that the former cannot calculate
+his profit as accurately as the latter can his loss.[217-4]
+
+Thus laws, the barriers interposed by tariffs, etc., may hinder the
+too-much of one country to flow over into the too-little of another.
+England, for instance might be suffering from a flood of manufactured
+articles and the United States from an oppressive depreciation in the
+value of raw material; but the tariff-laws places a hermetic dike
+between want on one side and superfluity on the other. Strong national
+antipathies and great differences of taste stubbornly adhered to may
+produce similar effects; for instance between the Chinese and Europeans.
+Even separation in space, especially when added to by badness of the
+means of transportation may be a sufficient hinderance especially when
+transportation makes commodities so dear that parties do not care to
+exchange. In such cases, it is certainly imaginable that there should be
+at once a want of proper vent or demand for all commodities; provided,
+we look upon each individual class of commodities the world over as one
+whole, and admit the exception that in individual places, certain parts
+of the whole more readily find a market because of the general crisis.
+
+Lastly, the mere introduction of trade by money destroys as it were the
+use of the whole abstract theory.[217-5] So long as original barter
+prevailed, supply and demand met face to face. But by the intervention
+of money, the seller is placed in a condition to purchase only after a
+time, that is, to postpone the other half of the exchange-transaction as
+he wishes. Hence it follows that supply does not necessarily produce a
+corresponding demand in the real market. And thus a general crisis may
+be produced, especially by a sudden diminution of the medium of
+circulation.[217-6] And so, many very abundant harvests, which have
+produced a great decline in the value of raw material, and no less so a
+too large fixation of capital which stops before its completion,[217-7]
+may lead to general over-production. In a word, production does not
+always carry with itself the guaranty that it shall find a proper
+market, but only when it is developed in all directions, where it is
+progressive and in harmony with the whole national economy. To use
+Michel Chevalier's expression, the saliant angles of the one-half must
+correspond to the re-entrant angles of the other, or confusion will
+reign everywhere. Even in individual industrial enterprises, the proper
+combination of the different kinds of labor employed in them is an
+indispensable condition of success. Let us suppose a factory in which
+there are separate workmen occupied with nothing but the manufacture of
+ramrods. If these now exceed the proper limits of their production and
+have manufactured perhaps ten times as many ramrods as can be used in a
+year, can their colleagues, employed in the making of the locks or
+butt-ends of the gun, profit by their outlay? Scarcely. There will be a
+stagnation of the entire business, because part of its capital is
+paralyzed, and all the workmen will suffer damage.[217-8] [217-9]
+
+     [Footnote 217-1: As _Ferguson_, History of Civil Society,
+     says, the person who thinks that all violent passions are
+     produced by the influence of gain or loss, err as greatly as
+     the spectators of Othello's wrath who should attribute it to
+     the loss of the handkerchief.]
+
+     [Footnote 217-2: If all the rich were suddenly to become
+     misers, live on bread and water, and go about in the
+     coarsest clothing, etc., it would not be long before all
+     commodities, the circulating medium excepted, would feel the
+     want of a proper market--all, including even the most
+     necessary means of subsistence, because a multitude of
+     former consumers, having no employment, would be obliged to
+     discontinue their demand. Over-production would be greater
+     yet if a great and general improvement in the industrial
+     arts or in the art of agriculture had gone before. Compare,
+     _Lauderdale_ Inquiry, 88. This author calls attention to the
+     fact that a market in which the middle class prevails must
+     put branches of production in operation very different from
+     those put in operation where there are only a few over-rich
+     people, and numberless utterly poor ones: England, the
+     United States--the East Indies, and France before the
+     Revolution. (Ch. 5, especially p. 358.)]
+
+     [Footnote 217-3: If England, for instance, became bankrupt
+     as a nation, the country would not therefore become richer
+     or poorer. The national creditors would lose about
+     �28,000,000 per annum, but the taxpayers would save that sum
+     every year. Now, of the former, there are not 300,000
+     families; of the latter there are at least 5,000,000. Hence,
+     the loss would there amount to �100 a family per annum, and
+     the gain here to not �6 per family. We may therefore assume
+     with certainty that the two items would not balance each
+     other as to consumption. The creditors of the nation, a
+     numerous, and hitherto a largely consuming class, now
+     impoverished, would be obliged to curtail their demand for
+     commodities of every kind to a frightful extent; while a
+     great many taxpayers would not feel justified in basing an
+     immediate increase of their demand on so small a saving.
+     Other revolutions, more political in character, may operate
+     in the same direction by despoiling a brilliant court, a
+     luxurious nobility or numerous official classes of their
+     former income.]
+
+     [Footnote 217-4: The above truth has been exaggerated by
+     Malthus and his school into the principle that a numerous
+     class of "unproductive consumers," who consume more than
+     they produce, is indispensable to a flourishing national
+     economy. From this point of view, the magnitude of England's
+     debt especially has been made a subject of congratulation.
+     Compare _Malthus_, Principles, II, ch. 1, 9. Similarly
+     _Ortes_, E. N., III, 17, to whom even the _impostori
+     mezzani_ and _ladri_ seem to be a kind of necessity. (III,
+     23.) _Chalmers_, Political Economy, III ff. If it was only
+     question of consumption here, all that would be needed would
+     be to throw away the commodities produced in excess. Those
+     writers forget that a consumer, to be desirable, should be
+     able to offer counter-values.]
+
+     [Footnote 217-5: _Malthus_, Principles, II, ch. 1, 3.]
+
+     [Footnote 217-6: Let us suppose a country which has been
+     used to effecting all its exchanges by means of
+     $100,000,000. All prices have been fixed, or have regulated
+     themselves accordingly. Let us now suppose that there has
+     been a sudden exportation of $10,000,000, and under such
+     circumstances as to delay the rapid filling up of the gap
+     thus created. In the long run, the demand of a country for a
+     circulation may be satisfied just as well with $90,000,000
+     as with $100,000,000; only it is necessary in the first
+     instance that the circulation should be accelerated or that
+     the price of money should rise 10 per cent. But neither of
+     these accommodations is possible immediately. In the
+     beginning, sellers will refuse to part with their goods 10
+     per cent. cheaper than they have been wont to. But so long
+     as those engaged in commercial transactions have not become
+     completely conscious of the revolution which has taken place
+     in prices, and do not act accordingly, there is evidently a
+     certain ebb in the channels of trade, and simultaneously in
+     all. Demand and supply are kept apart from each other by the
+     intervention of a generally prevailing error concerning the
+     real price of the medium of circulation, and there must be,
+     although only temporarily, buyers wanted by every seller,
+     except the seller of money. In a country with a paper
+     circulation, every great depreciation of the value of the
+     paper money not produced by a corresponding increase of the
+     same, may produce such results. _Say_ is wrong when he says
+     that a want of instruments of exchange may be always
+     remedied immediately and without difficulty.]
+
+     [Footnote 217-7: Suppose a people, the country population of
+     which produce annually $100,000,000 in corn over and above
+     their own requirements, and thus open a market for those
+     engaged in industrial pursuits to the extent of
+     $100,000,000. And suppose that in consequence of three
+     plentiful harvests, and because of an inability to export,
+     the market should grow to be over-full, to such an extent
+     that the much greater stores of corn have now (� 5, 103) a
+     much smaller value in exchange than usual. The latter may
+     have declined to $70,000,000. Hence the country people now
+     can buy from the cities only $70,000,000 of city wares. The
+     cities, therefore, suffer from over-production. That people
+     dispensing with the use of money should establish an
+     immediate trade between wheat and manufactured articles, in
+     which case the latter would exchange against a large
+     quantity of the former, is not practicable, because no one
+     can extend his consumption of corn beyond the capacity of
+     his stomach, and the storage of wheat with the intention of
+     selling it when the price advances is attended with the
+     greatest difficulties.]
+
+     [Footnote 217-8: If, for instance, there are too many
+     railroads in process of construction, all other commodities
+     may in consequence lose in demand, and when the further
+     construction begins to be arrested on account of a
+     superfluity of roads, the new rail factories, etc. are
+     involved in the crisis.]
+
+     [Footnote 217-9: On the special pathology and therapeutics
+     of this economic disease, compare _Roscher_, Die
+     Productionskrisen, mit besonderer R�cksicht auf die letzen
+     Jahrzente in the Gegenwart, Brockhaus, 1849, Bd., III, 721
+     ff., and his Ansichten der Volkswirthschaft, 1861, 279 ff.]
+
+
+SECTION CCXVIII
+
+PRODIGALITY AND FRUGALITY.
+
+Prodigality is less odious than avarice, less irreconcilable with
+certain virtues, but incomparably more detrimental to a nation's
+economy. The miser's treasures, even when they have been buried, may be
+employed productively, at least, after his death; but prodigality
+_destroys_ resources. So, too, avarice is a repulsive vice, extravagance
+a seductive one. The practice of frugality[218-1] in every day life is
+as far removed from one extreme as the other. It is the "daughter of
+wisdom, the sister of temperance and the mother of freedom." Only with
+its assistance can liberality be true, lasting and successful. It is, in
+short, reason and virtue in their application to consumption.[218-2]
+[218-3]
+
+     [Footnote 218-1: Negatively: the principle of sparing;
+     positively: the principle of making the utmost use of
+     things. (_Sch�ffle_, Kapitalismus und Socialismus, 27.)]
+
+     [Footnote 218-2: Admirable description of economy in _B.
+     Franklin's_ Pennsylvanian Almanac, How poor Rich. Saunders
+     got rich; also in _J. B. Say_, Trait�, III, ch. 5. _Adam
+     Smith_, W. of N., II, ch. 3, endeavors to explain why it is
+     that, on the whole and on a large scale, the principle of
+     economy predominates over the seductions of extravagance.
+     This, however, is true only of progressive nations.]
+
+     [Footnote 218-3: The Savior Himself in His miracles, the
+     highest pattern of economy: _Matth._, 14, 20; _Mark_, 6, 43;
+     8, 8; _Luke_, 9, 17; _John_, 6, 12. That He did not intend
+     to prohibit thereby all noble luxury is shown by passages
+     such as _Matth._, 26, 6 ff.; _John_, 2, 10.]
+
+
+SECTION CCXIX.
+
+EFFECT OF PRODIGALITY.
+
+Prodigality destroys goods which either were capital or might have
+become capital. But, at the same time, it either directly or indirectly
+increases the demand for commodities. Hence, for a time, it raises not
+only the interest of capital, but the prices of many commodities.
+Consumers naturally suffer in consequence; many producers make a profit
+greater than that usual in the country until such time as the
+equilibrium between supply and demand has been restored by an increase
+of the supply of the coveted products. But the capital of spendthrifts
+is wont to be suddenly exhausted; demand suddenly decreases, and
+producers suffer a crisis. As Benjamin Franklin says, he who buys
+superfluities will at last have to sell necessities. Thus the
+extravagance of a court may contribute to the rapid prosperity of a
+place of princely residence.[219-1] But it should not be forgotten that
+all the food-sap artificially carried there had to be previously
+withdrawn from the provinces. The clear loss caused by the destruction
+of wealth should also be borne in mind.[219-2] [219-3]
+
+     [Footnote 219-1: A rapid change of hands by money, as it is
+     called in every day life. See, _per contra_, _Tucker_,
+     Sermons, 31, 1774.]
+
+     [Footnote 219-2: Only the superficial observer is apt to
+     notice this apparent prosperity of the capital much more
+     readily than the decline of the rest of the country, which
+     covers so much more territory. In like manner, many wars
+     have had the appearance of promoting industry, for the
+     reason that some branches grew largely in consequence of the
+     increased demand of the state; but they grew at the expense
+     of all others which had to meet the increased taxes. Compare
+     _Jacob_ in _Lowe_, England nach seinem gegenwartigen
+     Zustande, 1823, cap. 2, 3; _Nebenius_, Oeffentlicher Credit,
+     I, Aufl., 419 ff.; _Hermann_, department of the Seine,
+     amounted, in 1850, to 497,000,000 francs; in the department
+     of the Bouches du Rhone, to 39,000,000 francs; in 1855, on
+     the other hand, they were, on account of the war,
+     887,000,000 francs and 141,000,000. (Journal des Econ.,
+     Juil., 1857, 32 ff.)]
+
+     [Footnote 219-3: The Journal des Economistes for March,
+     1854, very clearly shows, in opposition to the
+     state-sophists who recommended extravagant balls, etc. as a
+     means of advancing industry, and who even advocated the
+     paying officials higher salaries on this account, and making
+     greater outlays by them compulsory, that such luxury when it
+     comes of itself may be a symptom of national wealth, but
+     that it is a very bad means to produce prosperity
+     artificially.]
+
+
+SECTION CCXX.
+
+WHEN SAVING IS INJURIOUS.
+
+The act of saving, if the consumption omitted was a productive one, is
+detrimental to the common good; because now a real want of the national
+economy remains unsatisfied.[220-1] The effecting of savings by
+curtailing unproductive consumption may embarrass those who had
+calculated on its continuance. But its utility or damage to the whole
+national economy will depend on the application or employment of what is
+saved. Here two different cases are possible.
+
+A. It is stored up and remains idle. If this happens to a sum of money,
+the number of instruments of exchange in commerce is diminished. Hence,
+in consequence, there may be either a general fall in the price of
+commodities, or some commodities may remain unsold; that is, according
+to � 217, a commercial crisis of greater or smaller extent.[220-2] If it
+be objects of immediate consumption that are stored up and lie idle,
+articles of food or clothing, for instance, the price of such
+commodities is wont to be raised by the new and unusual demand for them,
+precisely as it is lowered afterwards when the stores are suddenly
+opened and thrown upon the market.[220-3]
+
+B. If the saving effected be used to create fixed capital, there is as
+much consumption of goods, the same support of employed workmen, the
+same sale for industrial articles as in the previous unproductive
+consumption; only, there the stream is usually conducted into other
+channels. If a rich man now employs in house-building what he formerly
+paid out to mistresses; masons, carpenters, etc. earn what was formerly
+claimed by hair-dressers, milliners, etc.: there is less spent for
+truffles and champagne and more for bread and meat. The last result is a
+house which adds permanently either to personal enjoyment, or
+permanently increases the material products of the nation's
+economy.[220-4] And it is just so when the wealth saved is used as
+circulating capital. Here, the wealth saved is consumed in a shorter or
+longer time; and to superficial observers, this saving might seem like
+destruction; but it is distinguished from the last by this, that it
+always reproduces its full equivalent and more. However, the whole
+quantity of goods brought into the market by such new capital cannot be
+called its product. Only the use (_N�tzung_) of the new capital can be
+so called; that is the holding together or the development in some other
+way of other forces which were already in existence until their
+achievements are perfected and ready for sale.[220-5] [220-6]
+
+     [Footnote 220-1: What evil influences such saving can have
+     may be seen from Prussian frugality in its military system
+     before 1806.]
+
+     [Footnote 220-2: The custom of burying treasure is produced
+     by a want of security (compare _Montanari_, Delia Moneta,
+     1683-87, 97 Cust.), and by an absence of the spirit which
+     leads to production. As _Burke_ says, where property is not
+     sacred, gold and silver fly back into the bosom of the earth
+     whence they came. Hence, in the middle ages, this custom was
+     frequent, and is yet, in most oriental despotic countries.
+     (_Montesquieu_, E. des L., XXII, 2.) And so in Arabia: _d'Arvieux_,
+     _Rosenm�ller's_ translation, 61 seq. _Fontanier_, Voyage dans l'Inde
+     et dans le Golfe persique, 1644, I, 279. A Persian governor on his
+     death bed refused to give any information as to where he had buried
+     his treasure. His father had always murdered the slave who helped him
+     to bury his money or any part of it. (_Klemm_, Kulturgeschichte, VII,
+     220.) In lower stages of civilization, it is a very usual luxury to
+     have one's treasures buried with the corpse. In relation to David's
+     grave, see _Joseph._, Ant. Jud., VII, 15,3, XIII, 8, 4; XVI, 7, 1.
+     Hence the orientals believe that _every_ unknown ruin hides a
+     treasure, that every unintelligible inscription is a talisman to
+     discover it by, and that every scientific traveler is a
+     treasure-digger, (_v. Wrede_, R. in Hadhramaut, 113, 182 and
+     _passim_.) Similarly in Sicily. (_Rehfues_, Neuester Zustand von S.,
+     1807, I, 99.) In the East Indies every circumstance that weakens
+     confidence in the power of the government increases the frequency of
+     treasure-burial, as was noticed, for instance, after the Afghan
+     defeat. Treasure-burial by the Spanish peasantry (_Borrego_,
+     translated by Rottenkamp, 81), in Ireland (_Wakefield_, Account of I.
+     I, 593), in the interior of Russia (_Storch_, Handbuch, I, 142), and
+     among the Laplanders. The custom was very much strengthened among the
+     latter when, in 1813, they lost 80 per cent. by the bankruptcy of the
+     state through its paper money. (_Brooke_, Winter in Lapland, 1829,
+     119; compare _Blom_, Statistik von Norwegen, II, 205.) As during the
+     Thirty Years' War, so also in 1848, it is said that large amounts of
+     money were burned by the Silesian and Austrian peasantry. Much of it
+     is lost forever, but, on the whole, much treasure is wont to be found
+     where much is buried; governments there make it a regal right to
+     search for it.]
+
+     [Footnote 220-3: If the hoarding takes place in a time of superfluity,
+     and the restitution of the stores in a time of want, there is of
+     course no detrimental disturbance, but on the contrary the consequence
+     is a beneficent equilibrium of prices. This is the fundamental idea in
+     the storage of wheat.]
+
+     [Footnote 220-4: In the construction of national buildings, etc., we
+     have the following course of things: compulsory contributions made by
+     taxpayers, or an invitation to the national creditors to desist
+     somewhat from their usual amount of consumption, and to employ what is
+     saved in the building of canals, roads etc. In France, for instance,
+     after 1835, 100,000,000 francs per annum. (_M. Chevalier_, Cours, I,
+     109.) The higher and middle classes of England saved, not without much
+     trouble, however, between 1844 and 1858, �134,500,000 in behalf of
+     railway construction. _Tooke-Newmarch_.]
+
+     [Footnote 220-5: Such savings have sometimes been prescribed
+     by the state. In ancient Athens many prohibitions of
+     consumption in order to allow the productive capital to
+     first attain a certain height. Thus it was forbidden to
+     slaughter sheep until they had lambed, or before they were
+     shorn. (_Athen._, IX, 375, I. 9.) Similarly the old
+     prohibition of the exportation of figs. (Ibid., III, 74.)
+     Compare Petit. Leges. Atticae, V, 3. _Boeckh_,
+     Staatshaushaltung, I, 62 seq.]
+
+     [Footnote 220-6: The process of the transformation of
+     savings from a money-income, in a money-economy
+     (_Geldwirthschaft_), into other products, more closely
+     analyzed in _v. Mangoldt_, V. W. L., 152 ff.]
+
+
+SECTION CCXXI.
+
+LIMITS TO THE SAVING OF CAPITAL.
+
+It may be seen from the foregoing, that the mere saving of capital, if
+the nation is to be really enriched thereby, has its limits. Every
+consumer likes to extend his consumption-supply and his capital in use
+(_Gebrauchskapitalien_); but not beyond a certain point.[221-1] Besides,
+as trade becomes more flourishing, smaller stores answer the same
+purpose. And no intelligent man can desire his productive capital
+increased except up to the limit that he expects a larger market for his
+enlarged production. What merchant or manufacturer is there who would
+rejoice or consider himself enriched, if the number of his customers and
+their desire to purchase remaining the same, he saw his stores of
+unsaleable articles increase every year by several thousands?
+
+This is another difference between national resources or world resources
+and private resources. The resources of a private person, which are only
+a link in the whole chain of trade, and which are, therefore, estimated
+at the value in exchange of their component parts should, indeed, always
+be increased by savings made. (� 8.) For even the most excessive
+increase of supply in general, which largely lowers the price of a whole
+class of commodities, will never reduce the price of individual
+quantities of that commodity below zero, and scarcely to zero. It is
+quite otherwise in the case of national or world resources which must be
+estimated according to the value in use of their component parts. Every
+utility supposes a want. Where, therefore, the want of a commodity has
+not increased, and notwithstanding there is a continuing increase in the
+supply, the only result must be a corresponding decrease in the utility
+of each individual part.[221-2]
+
+If a people were to save all that remained to them over and above their
+most urgent necessities, they would soon be obliged to seek a wider
+market in foreign countries, or loan their capital there; but they would
+make no advance whatever in higher culture nor add anything to the
+gladness of life.[221-3] On the other hand, if they would not save at
+all, they would be able to extend their enjoyments only at the expense
+of their capital and of their future. Yet these two extremes find their
+correctives in themselves. In the former case, a glut of the market
+would soon produce an increased consumption and a diminished production;
+in the latter the reverse. The ideal of progress demands that the
+increased outlay with increased production should be made only for
+worthy objects, and chiefly by the rich, while the middle and lower
+classes should continue to make savings and thus contribute to wipe out
+differences of fortune.[221-4]
+
+     [Footnote 221-1: Up to this point, indeed, wants increase
+     with the means of their satisfaction. The man who has two
+     shirts always strives to get a dozen, while the person who
+     has none at all, very frequently does not care for even one.
+     And so the person who has silver spoons generally desires
+     also to possess silver candle-sticks and silver plates. On
+     Lucullus' 5,000 chlamydes, see _Horat._, Epist., I, 6, 40
+     ff.]
+
+     [Footnote 221-2: That consumption and saving are not two
+     opposites which exclude each other is one of _Adam Smith's_
+     most beautiful discoveries. See Wealth of Nat., II, ch. 3.
+     But compare _Pinto_, Du Cr�dit et de la Circulation, 1771,
+     335. Before his time most writers who were convinced of the
+     necessity of consumption were apologists of extravagance.
+     Thus _v. Schr�der_, F. Schatz- und Rentkammer, 23 seq. 47,
+     172. Louis XIV.'s saying: "A King gives alms when he makes
+     great outlays." According to _Montesquieu_, Esprit des Louis
+     VII., 4, the poor die of hunger when the rich curtail their
+     expenses. This view, which must have found great favor among
+     the imitators of Louis XIV. and Louis XV. was entertained to
+     some extent by the Physiocrates; for instance, _Quesnay_,
+     Maximes g�n�rales, 21 seq. Compare _Turgot_, Oeuvres, �d,
+     _Dare_, 424 ff. On the other hand, _Adam Smith_, loc. cit.
+     says that the spendthrift is a public enemy, and the person
+     who saves a public benefactor. _Lauderdale_, Inquiry, 219,
+     reacts so forcibly against the one-sidedness which this
+     involves that he believes no circumstance possible "which
+     could so far change the nature of things as to turn
+     parsimony into a means of increasing wealth." In his polemic
+     against Pitts' sinking fund as inopportune and excessive, he
+     assumes that all sums saved in that way are completely
+     withdrawn from the national demand. See per contra
+     _Hufeland_ n. Grundlegung I, 32, 238. _Sismondi_, N. P. II,
+     ch. 6, with his distinction between _production_ and
+     _revenu_, is more moderate; the former is converted into the
+     latter only in as much as it is "realized," that is, finds a
+     consumer who desires it, and pays for it. Now only can the
+     producer rely on anything; can he restore his productive
+     capital, estimate his profit, and use it in consumption, and
+     lastly begin the whole business over again.... A stationary
+     country must remain stationary in everything. It cannot
+     increase its capital and widen its market while its
+     aggregate want remains unaltered. (IV, ch. 1.)]
+
+     [Footnote 221-3: Thus _John Stuart Mill_ thinks that the
+     American people derive from all their progress and all their
+     favorable circumstances only this advantage: "that the life
+     of the whole of one sex is devoted to dollar-hunting, and of
+     the other to breeding dollar-hunters." (IV, ch. 6, 2.) In
+     the popular edition of 1865, after the experience of the
+     American civil war, he materially modified this judgment.]
+
+     [Footnote 221-4: _Storch_, Nationaleinkommen, 125 ff. That
+     there is at least not too much to be feared from the making
+     of too great savings is shown by _Hermann_, St. Untersuch.,
+     371 seq. On the other hand, there is less wealth destroyed
+     by spendthrifts than is generally supposed, for spendthrifts
+     are most frequently cheated by men who make savings
+     themselves. (_J. S. Mill_, Principles, I, ch. 5, 5.)]
+
+
+SECTION CCXXII.
+
+SPENDTHRIFT NATIONS.
+
+As there are extravagant and frugal individuals, so also are there
+extravagant and frugal nations. Thus, for instance, we must ascribe
+great national frugality to the Swiss. In many well-to-do families in
+that country, it is a principle acted upon to require the daughters to
+look to the results of their white sewing, instead of giving them
+pin-money; to gather up the crumbs after coffee parties in the presence
+of the guests, and to make soup of them afterwards, etc. Sons are
+generally neither supported nor helped to any great extent by their
+parents in their lifetime, and are required to found their own homes.
+They, therefore, grow rich from inheritance only late in years, when
+they are accustomed to a retired and modest mode of life, and have
+little desire, from mere convenience sake, to change it for another. And
+so Temple informs us that it never occurs to the Dutch that their outlay
+should equal their income; and when this is the case they consider that
+they have spent the year in vain. Such a mode of life would cost a man
+his reputation there as much as vicious excess does in other countries.
+The greatest order and the most accurate calculation of all outlay in
+advance is found in union with this; so that Temple assures us he never
+heard of a public or private building which was not finished at the time
+stipulated for in advance.[222-1]
+
+On the other hand, the Englishman lives rather luxuriantly. He is so
+used to enjoying comparative abundance, that when English travelers see
+the peasantry of the continent living in great frugality, they generally
+attribute it to poverty and not to their disposition to make savings. If
+England has grown rich, it is because of the colossal magnitude of its
+production, which is still more luxuriant and abundant than its
+consumption.[222-2] This contrast may be the effect in part of
+nationality and climate;[222-3] but it is certainly the effect in part
+also of a difference in the stage of civilization which these countries
+have respectively reached. The elder Cato had a maxim that a widow
+might, indeed, allow her fortune to diminish, but that it was a man's
+duty to leave more behind him than he had inherited.[222-4] And how
+prodigally did not the lords of the universe live in later times!
+
+     [Footnote 222-1: _Temple_, Observations on the U. Provinces,
+     Works, I, 136, 138 seq., 179. _Roscher_, Geschichte der
+     engl. Volkswirthschaftsl., 129. Thus, for instance, the
+     Richesse de Hollande, I, 305, describes a rich town near
+     Amsterdam in which a man with an income of 120,000 florins a
+     year expended probably only 1,000 florins per annum on
+     himself.]
+
+     [Footnote 222-2: As early a writer as _D. Defoe_, Giving
+     Alms no Charity! 1704, says: the English get estates; the
+     Dutch save them. An Englishman at that time with weekly
+     wages of 20 shillings just made ends meet; while a Dutchman
+     with the same grew rich, and left his children behind him in
+     very prosperous circumstances, etc. _L. Faucher_ draws a
+     similar contrast between his fellow countrymen and the
+     English. _Goethe's_ ingenuous observations (Werke, Bd., 23,
+     246, ed. of 1840) in his Italian journey, show that the
+     Italians, too, know how to save. _Molti pochi fanno un
+     assai!_ And so in Bohemia, the Czechs have a good reputation
+     for frugality, sobriety, etc. as workmen. They are more
+     frugal than the Germans, although all the larger businesses
+     belong to Germans, because when the Czech has saved
+     something, he prefers to return to his village to putting
+     his savings in jeopardy by speculation.]
+
+     [Footnote 222-3: Drunkenness a common vice of northern
+     people: thus in antiquity the Thracians (_Athen._, X, 42;
+     _Xenoph._, Exp. Cyri, VII, 3, 32), the Macedonians, for
+     instance, Philips (_Demosth._, Olynth., II, 23) and
+     Alexander's (_Plutarch_, Alex., 70; De Adulat, 13). To drink
+     like a Scythian, meant, among the Greeks, to drink like a
+     beast. (_Athen._, X, 427; _Herod._, VI, 84.) On North German
+     drunkenness in the 16th century, see _Seb. M�nster_,
+     Cosmogr., 326, 730. _Kantzow_, Pomerania, II, 128.]
+
+     [Footnote 222-4: _Plutarch_, Cato, I, 21.]
+
+
+SECTION CCXXIII.
+
+THE MOST DETRIMENTAL KIND OF EXTRAVAGANCE.
+
+The kind of extravagance which it is most natural we should desire to
+see put an end to, is that which procures enjoyment to no one. I need
+call attention only to the excessive durability and solidity of certain
+buildings. It is more economical to build a house that will last 60
+years for $10,000, than one which will last 400 years for $20,000; for
+in 60 years the interest saved on the $10,000 would be enough to build
+three such houses.[223-1] This is, of course, not applicable to houses
+built as works of art, or only to produce an imposing effect. The object
+the ancient Egyptians had in view in building their obelisks and
+pyramids continues to be realized even in our day.
+
+I might also call attention to the premature casting away of things
+used. Our national economy has saved incredible sums since rags have
+been manufactured into paper. In Paris 4,000 persons make a living from
+what they pick up in the streets.[223-2]
+
+     [Footnote 223-1: Compare _Minard_, Notions �l�mentaires
+     d'Economie politique appliqu�e aux Travaux publics, 1850, 71
+     ff. He calls to mind the many strong castles of the age of
+     chivalry, the Roman aqueducts, theaters, etc., which are
+     still in a good state of preservation, but which can be used
+     by no one; so many bridges too narrow for our purposes, and
+     so many roads too steep. The sluices at Dunkirk, made 12.60
+     metres in width by Vauban, were made 16 meters wider in
+     1822, and still are too narrow for Atlantic steamships. In
+     England, private individuals have well learned to take all
+     this into account. Compare _J. B. Say_, Cours pratique,
+     translated by Morstadt, I, 454 ff.]
+
+     [Footnote 223-2: _Fregier_, Die gef�hrlichen Klassen,
+     translated 1840, I, 2, 38. In Yorkshire it is said that
+     woolen rags to the amount of �52,000,000 a year are
+     manufactured into useful articles. (_Tooke_,
+     Wool-Production, 196.) Compare The Use of Refuse: Quart.
+     Rev., April, 1868. On the ancient Greek ragpickers the
+     so-called spermologois, see _St. John_, The Hellenes, III,
+     91; on the Roman _Centonariis_: _Cato_, R. R., 135;
+     _Columella_, R. R., I, 8, 9; _Marquardt_, II, 476, V, 2,
+     187.]
+
+
+
+
+CHAPTER II.
+
+LUXURY.
+
+
+SECTION CCXXIV.
+
+LUXURY IN GENERAL.
+
+The idea conveyed by the word luxury is an essentially relative one.
+Every individual calls all consumption with which he can dispense
+himself, and every class that which seems not indispensable to
+themselves, luxury. The same is true of every age and nation. Just as
+young people ridicule every old fashion as pedantry, every new fashion
+is censured by old people as luxury.[224-1]
+
+But (� I) a higher civilization always finds expression in an increased
+number and an increased urgency of satisfied wants. Yet, there is a
+limit at which new or intensified wants cease to be an element of higher
+civilization, and become elements of demoralization. Every immoral and
+every unwise want exceeds this limit.[224-2] Immoral wants are not only
+those the satisfaction of which wounds the conscience, but also those in
+which the necessities of the soul are postponed to the affording of
+superfluities to the body; and where the enjoyment of the few is
+purchased at the expense of the wretchedness of the many. And not only
+those are unwise or imprudent for which the voluntary outlay is greater
+than one's income, but those also where the indispensable is made to
+suffer for the dispensable.
+
+Thus it was in Athens, in the time of Demosthenes, when the festivities
+of the year cost more than the maintenance of the fleet; when Euripides'
+tragedies came dearer to the people than the Persian war in former
+times. There was even a law passed (Ol. 107,4) prohibiting the
+application of the dramatic fund to purposes of war under pain of
+death.[224-3]
+
+In the history of any individual people, it may be shown with
+approximate certainty at what point luxury exceeded its salutary limits.
+But in the case of two different nations, it is quite possible that what
+was criminal prodigality with the one, may have been a salutary
+enjoyment of life with the other; in case their economic
+(_wirthschaftlichen_) powers are different. Precisely as in the case of
+individuals, where for instance, the daily drinking of table wine may be
+simplicity in the rich and immoral luxury in the case of a poor father
+of a family.[224-4] Healthy reason has this peculiarity, that where
+people will not listen to it, it never hesitates to make itself felt.
+(_Benjamin Franklin._)[224-5]
+
+However, the luxury of a period always throws itself, by way of
+preference, on those branches of commodities which are cheapest.
+
+     [Footnote 224-1: _Stuart_, Principles, II, ch. 30,
+     _Ferguson_, History of Civil Society, VI, 2. Thus
+     _Dandolus_, Chron. Venet., 247, tells of the wife of a doge
+     at Constantinople who was so given to luxury that she ate
+     with a golden fork instead of her fingers. But she was
+     punished for this outrage upon nature: her body began to
+     stink even while she was alive. In the introduction to
+     _Hollinshed's_ Chronicon, 1557, there is a bitter complaint
+     that, a short time previous, so many chimneys had been
+     erected in England, that so many earthen and tin dishes had
+     been introduced in the place of wooden ones. Another author
+     finds fault that oak was then used in building instead of
+     willow, and adds that formerly the men were of oak but now
+     of willow. _Slaney_, On rural Expenditure, 41. Compare
+     _Xenoph._, Cyrop., VIII, 8, 17.]
+
+     [Footnote 224-2: Biblically determined: _Romans_, 13, 14.]
+
+     [Footnote 224-3: _Plutarch_, De Gloria Athen., 348.
+     _Athen._, XIV, 623. Petit. Legg. Att., 385.]
+
+     [Footnote 224-4: _Livy_, XXXIV, 6 ff.]
+
+     [Footnote 224-5: Most writers who have treated of luxury at
+     all have generally confined themselves to inquiring whether
+     it was salutary or reprehensible. Aristippus and
+     Antisthenes, Diogenes, etc.; Epicureans and Stoics. The
+     latter were reproached with being bad citizens, because
+     their moderation in all things was a hindrance to trade.
+     (_Athen._, IV, 163.) The Aristotelian _Herakleides_ declared
+     luxury to be the principal means to inspire men with
+     noble-mindedness; inspired by luxury, the Athenians
+     conquered at Marathon. (_Athen._, XII, 512.) _Pliny_ was one
+     of the most violent opponents of luxury. See _Pliny_, N. N.,
+     XXXIII, 1, 4, 13, and other places. The controversy has been
+     renewed by the moderns, especially since the beginning of
+     the 18th century, after luxury of every kind had previously
+     (for the most part on theological grounds, but also by
+     Hutten, for instance) been one-sidedly condemned. Among its
+     defenders were _Mandeville_, The Fable of the Bees, 1706,
+     who, however, calls everything a luxury which exceeds the
+     baldest necessities of life; _Voltaire_ in Le Mondain, the
+     Apologie du Luxe, and Sur L'Usage de la Vie; _M�lon_, Essai
+     politique sur le Commerce, ch. 9; _Hume_, Discourses, No. 2,
+     On Refinement in the Arts; _Dumont_, Th�orie du Luxe, 1771;
+     _Filangieri_, Delle Leggi politiche ed economiche, II, 37;
+     and the majority of the Mercantile school and of the
+     Physiocrates. Among the opponents of luxury, _J. J.
+     Rousseau_ towers over almost all others. Further, _F�n�lon_,
+     T�l�maque, 1699, L. XXII; _Pinto_, Essai sur le Luxe, 1762.
+
+     The reasons and counter-reasons advanced by those writers
+     apply not only to luxury but to the lights and shades of
+     high civilization in general. When a political economist
+     declares for or against luxury in general, he resembles a
+     doctor who should declare for or against the nerves in
+     general. There has been luxury in every country and in every
+     age. Among a healthy people, luxury is also healthy, an
+     essential element in the general health of the nation. Among
+     an unhealthy people luxury is a disease, and
+     disease-engendering.
+
+     For an impartial examination of the question, see
+     _Ferguson_, History of Civil Society, towards the end; see
+     also _Beckmann_, in _Justis'_ Grunds�tzen der Polizei, 1782,
+     � 308; _Rau_, Ueber den Luxus, 1817; _Roscher_, Ueber den
+     Luxus, in the Archiv der Politischen Oekonomie, 1843, and in
+     his Ansichten der Volkswirthschaft, 1861, 399 ff.]
+
+
+SECTION CCXXV.
+
+THE HISTORY OF LUXURY.--IN THE MIDDLE AGES.
+
+During the middle ages, industry and commerce had made as yet but little
+progress. Hence it was as difficult then for luxury to be ministered to
+by fine furniture as by the products of foreign countries. Individual
+ornamental pieces, especially arms and drinking cups,[225-1] were wont
+to be the only articles of luxury. We have inventories of the domains of
+Charlemagne from which we find that in one of them, the only articles of
+linen owned were two bed-sheets, a table-cloth and a pocket
+handkerchief.[225-2] Fashion is here very constant; because clothing was
+comparatively dearer than at present. And so now in the East. In the
+matter of dwellings, too, more regard was had to size and durability,
+than to elegance and convenience. The palaces of Alfred the Great were
+so frailly built that the walls had to be covered with curtains as a
+protection against the wind, and the lights to be inclosed in
+lanterns.[225-3]
+
+Hence the disposition to use the products of the home soil as articles
+of luxury was all the greater, but more as to quantity than to
+quality.[225-4] Since the knight could personally neither eat nor drink
+a quantity beyond the capacity of his own stomach, he kept a numerous
+suite to consume his surplus. It is well known what a great part was
+played among the ancient Germans by their retinues of devoted servants
+(_comitatus_), which many modern writers have looked upon as
+constituting the real kernel of the migration of nations.
+
+In England, it was a maxim of state policy with Henry VII., whose reign
+there terminated the middle age, to prohibit the great liveried suites
+of the nobility (19 Henry VII., ch. 14) as Richard II., Henry IV. and
+Edward IV. had already attempted to do. But even under James I., we find
+ambassadors accompanied by a suite of 500 persons or 300
+noblemen.[225-5]
+
+The rich man welcomed every opportunity which enabled him to make others
+share in a dazzling manner the magnitude of his superfluous wealth:
+hence the numberless guests at weddings who were frequently entertained
+for weeks.[225-6] These festivities are memorable not because of the
+delicacies or great variety of the dishes, but because of their colossal
+magnitude. Even William of Orange, 1561, entertained at his wedding
+guests who had brought with them 5,647 horses; and he appeared himself
+with a suite of 1,100 men on horseback. There were consumed on the
+occasion 4,000 bushels of wheat, 8,000 of rye, 11,300 of oats, 3,600
+_eimers_ of wine, 1,600 barrels of beer.[225-7] In the ordinance of
+M�nden regulating weddings, promulgated in the year 1610, it is
+provided, that, at a large wedding there should not be over 24 tables,
+nor at a small one over 14, with 10 persons at each table.[225-8]
+
+The hospitality of the lower stages of civilization[225-9] must be
+ascribed as well to this peculiar kind of luxury as to mere good nature.
+Arabian chiefs have their noon-day table set in the street and welcome
+every passer-by to it.[225-10] (_Pococke._) And so, distinguished
+Indians keep an open cauldron on the fire cooking all the time, from
+which every person who comes in may help himself. (_Catlin._)
+
+Compared with this luxury of the rich, the poverty found side by side
+with it appears less oppressive. There is no great gap between the modes
+of life of the different classes.[225-11] This is the golden age of
+aristocracy, when no one questions its legitimateness. When, later, the
+nobleman, instead of keeping so many servants, begins to buy costly
+garments for himself, he, indeed, supports indirectly just as many and
+even more men; but these owe him nothing. Besides, in this last kind of
+luxury, it is very easily possible for him to go beyond his means, which
+is scarcely ever the case in the former.[225-12]
+
+     [Footnote 225-1: Here, as a rule, the value of the metal was
+     greater than the form-value; and hence the medieval
+     monasteries frequently made loans of silver vessels, where
+     of course, the form could not be taken into consideration.
+     On the other hand, in the case of the table service,
+     presented by the king of Portugal to Lord Wellington, the
+     metal cost �85,000 and the workmanship �86,000. (_Jacob_,
+     Gesch. der edlen Metalle, translated by Kleinschrod, II, 5.)
+     Compare _Hume_, History of England, ch. 44, App. 3.
+     Similarly under Louis XIV. (_Sismondi_, Hist. des Fran�ais,
+     XXVII, 45.) When Rome was highly civilized, C. Gracchus paid
+     for very good silver ware, 15 times the value of the metal,
+     and L. Crassus, (consul 95 before Christ) 18 times its
+     value. _Mommsen_, R. Gesch. II, 383.]
+
+     [Footnote 225-2: _Specimen breviarii fiscalium Caroli
+     Magni_; compare _Anton_, Gesch. der deutschen Landwirthsch.
+     244 ff.]
+
+     [Footnote 225-3: _Turner_, History of the Anglo Saxons, VII,
+     ch. 6.]
+
+     [Footnote 225-4: In _Homer_, the kings live on nothing but
+     meat, bread and wine: compare _Athen._, I, 8. In the
+     saga-poetry of Iceland, _H. Leo_ does not remember to have
+     heard any other food mentioned except oat-pap, milk, butter
+     and cheese, fish, the flesh of domestic animals, and beer.
+     (_Raumer's_ Taschenbuch, 1835, 491)]
+
+     [Footnote 225-5: _Hume_, History of England, ch. 49, Append.
+     Similarly among all nations which have still preserved much
+     of the medieval. Thus the duke of Alba, about the end of the
+     last century, had not a single commodious hall in his
+     immense palace, but 400 rooms for his servants, since at
+     least all his old servants, and even their widows and
+     families, continued to live with him. In Madrid alone, he
+     paid �1,000 a month wages to his servants; and the son of
+     the duke, Medina-Celi, �4,000 per annum. (_Townsend_, II,
+     155, 158.) In many palaces in Moscow, previous to 1812,
+     there were 1,000 and more servants, unskillful, clad for the
+     most part as peasants, badly fed, and with so little to do
+     that perhaps one had no service to perform but to fetch
+     drinking water at noon, and another in the evening. Even
+     poor noblemen kept 20 and 30 servants, (_v. Haxthausen_,
+     Studien, I, 59.) _Forster_, Werke, VII, 347, explains Polish
+     luxury in servants, by the poorness of the servants there: a
+     good German maid could do more than three Polish servants.
+     Thus, in Jamaica, it was customary to exempt from the
+     slave-tax persons who kept fewer than 7 negroes. (_B.
+     Edwards_, History of the W. Indies, I, 229.) Compare _Livy_,
+     XXXIX, 11. The luxury of using torch-bearers instead of
+     candelabra lasted until Louis XIV.'s time. (_Rocquefort_,
+     Hist. de la Vie priv�e des Fran�ais, III, 171.) Compare _W.
+     Scott_, Legend of Montrose, ch. 4.]
+
+     [Footnote 225-6: A Hungarian magnate, under king Sigismund,
+     celebrated his son's wedding for a whole year. (_Fessler_,
+     Gesch. von Ungarn, IV, 1267.)]
+
+     [Footnote 225-7: _M�ller_, Annal. Saxon, 68. Several
+     examples in _Sckweinichen's_ Leben von B�sching, I, 320 seq.
+     _Kr�nitz_, Enclycop�die, Bd. 82, 84 ff. The wedding of the
+     niece of Ottakar II. in 1264, has long been considered a
+     most brilliant event in the history of medieval luxury.
+     (_Palacky_, Gesch. von B�hmen, II, 191 ff.) Even yet, in
+     Abyssinia, on the occasion of royal feasts, only meat and
+     bread are eaten and mead drunk; but not only the great, but
+     even common soldiers are entertained one after the other.
+     (Ausland, 1846, No. 79.) Magnificent as was the table of a
+     West Indian planter, it was in some respects very simple. A
+     large ox was slaughtered for the feast, and everything had
+     to be prepared from that: roast beef, beef steaks, beef
+     pies, stews, etc. (_Pinckard_, Notes on the W. Indies, II.
+     100 ff.)]
+
+     [Footnote 225-8: _Spittler_, Geschichte Hanovers, I, 381.]
+
+     [Footnote 225-9: _Tacitus_, Germ., 21 Leg., says of the
+     Germans: _Convictibus et hospitiis non alia gens effusius
+     indulget. Quemcunque mortalium arcere tecto, nefas habetur.
+     Diem noctemque continuare potando, nulli probrum._]
+
+     [Footnote 225-10: Entirely the same among the ancient
+     Romans: _Valer. Max._, II, 5. Compare per _contra_,
+     _Euripid._, Herc. fur., 304 seq.]
+
+     [Footnote 225-11: Think of nomadic races especially, where
+     the rich can employ their wealth only to increase the number
+     of their partisans, for war purposes, etc.]
+
+     [Footnote 225-12: _Ferguson_, Hist. of Civil Society, VI, 3;
+     _Adam Smith_, Wealth of Nat., IV, ch. 4. Compare _Contzen_,
+     Politicorum, 1629, 662. As to how in the lower stages of
+     civilization, guests are used to supply the place of the
+     post-office service, see _Humboldt_, Relation hist., II,
+     61.]
+
+
+SECTION CCXXVI.
+
+LUXURY IN BARBAROUS TIMES.
+
+The luxury of that uncivilized age shows itself for the most part on
+particular occasions, and then all the more ostentatious, while in the
+periods following it, it rather permeates the whole of life. Even J.
+M�ser excuses our forefathers for their mad celebration of their
+_kirmesses_ and carnivals: _dulce est desipere in loco_, as Horace says,
+and that they sometimes carried it to the extent of drowning
+reason.[226-1] Among ourselves, the common man drinks brandy every day;
+in Russia, seldom, but then, to the greatest excess.[226-2] The well
+known peculiarity of feudal castles, that, besides one enormous hall,
+they were wont to have very small and inconvenient rooms for every day
+life, is accounted for in part by the great importance to them of festal
+occasions, and in part by the cordiality of the life led in them, in
+which lord and servants constituted one family. Nothing can be more
+erroneous than to ascribe great temperance in general to people in a low
+stage of civilization. Their simplicity is a consequence of their
+ignorance rather than of their self-control. When nomadic races have
+once tasted the cup of more delicate enjoyment, it is wont to hurry them
+to destruction.[226-3]
+
+     [Footnote 226-1: _M�ser_, Patr. Ph. IV, 7. On the feast of
+     fools and the feast of asses of the middle ages, compare
+     _Dutillet_, M�moire pour sevir � l'Histoire de la F�te des
+     Fous; _D. Sacchi_, Delle Feste popolari del medio Evo.
+     During the latter half of the 16th century, the first
+     Hannoverian minister received only 200 thalers salary and
+     pieces of clothing, while the wedding of a certain von
+     Saldern cost 5,600 thalers. (_Spittler_, Gesch. Hannovers,
+     I, 333.)]
+
+     [Footnote 226-2: _v. Haxthausen_, Studien, II, 450, 513.
+     Thus, in 1631, of those who had died suddenly, there were
+     957 who died of drunkenness. (_Bernouilli_, Populationistik,
+     303.) According to _v. Lengefeldt_, Russland im 19. Jahrh.,
+     42, the number is now 1,474 to 1,911 per annum. On Poland,
+     see _Klebs_, Landeskulturgesetzgebung in Posen, 78. When the
+     South American Indians begin to drink, they do not stop
+     until they fall down senseless. (_Ulloa_, Noticias
+     Americanas, ch. 17.) The old Romans considered all
+     barbarians to be drunkards. (_Plato_, De Legg., I, 638.) In
+     eating, also, uncivilized people are extremely irregular. A
+     Jackute or Tunguse consumes 40 pounds of meat; three men
+     devour a whole reindeer at a meal. (_Cochrane_, Fussreise,
+     156.) One ate in 24 hours the back quarter of a large ox, or
+     1/2 a _pud_ of fat, and drank an equal quantity of melted
+     butter. (_Klemm_, Kulturgeschichte, III, 18.) Similarly
+     among hunting races. See _Klemm_, I, 243, 339; II, 13, 255.
+     On the South Sea Islanders, see _Hawkesworth_, III, 505;
+     _Forster_, I, 255.]
+
+     [Footnote 226-3: Rapid degeneration of almost all barbaric
+     dynasties as soon as they have subjugated civilized
+     countries.]
+
+
+SECTION CCXXVII.
+
+INFLUENCE OF THE CHURCH AND OF THE CITY.
+
+The change in this situation takes place first of all in the churches
+and in the cities. The Church has passed through almost every stage of
+development in advance of the State; and civilization, both in the good
+and bad sense of the term, has become general, and gradually acclimated
+in the rural districts, through the influence of the cities. In the
+Church, the earliest art endeavored to reach the beautiful. There, we
+first find music, painting, sculpture, foreign perfumes, incense and
+variegated garments.[227-1] In the cities, growing industry introduces a
+more attractive style of clothing and a more ornamental style of
+household furniture. Commerce, beginning to thrive, raises foreign
+commodities into wants,[227-2] and thus the old luxury of feudal times
+is modified.[227-3] The large number of idle servants is diminished. All
+the more refined pleasures are extended downward to wider circles of the
+people. Instead of individual bards, rhapsodists, skalds and
+minnesingers, we have the beginnings of the theater, and instead of
+tournaments, the shooting matches. (_Freischiessen._)
+
+But it is remarkable how much earlier here pomp and splendor are
+considered than convenience. The Spanish _romanceros_ of the 12th
+century display wonderful splendor in their descriptions of the Cid, and
+the trousseau of his daughters. But, on the other hand, the wife of
+Charles VII. seems to have been the only French woman in the 15th
+century who had more than two linen chemises. Even in the 16th century,
+it frequently happened that a princess made a present to a prince of a
+single shirt. At this time the German middle class were wont to sleep
+naked.[227-4]
+
+Even now, half-civilized nations look more to the outward appearance of
+commodities than to their intrinsic value. Thus, for instance, in
+Russia, we find large numbers of porcelain services extravagantly
+painted and gilded, awkward, the material of which is full of blisters;
+damaskeened knives, gilt sad-irons and candle-snuffers with landscapes
+engraved on them: but nothing fits into anything else; the angles are
+vicious, the hinges lame, and the whole soon goes to pieces. And so,
+among export merchants in Bremen, for instance, it is a rule, on all
+their wares intended for America, to put a label made of very beautiful
+paper, with their coat-of-arms or firm-name in real silver, and to do
+the packing in as elegant a manner as possible.[227-5] Cloths intended
+for America are usually exceedingly light, destitute of solidity, but
+very well dressed. The cotton-printers who work for the African market
+prefer to employ false but cheap and dazzling colors.[227-6]
+
+     [Footnote 227-1: The use of window-glass in churches in
+     England dates from 674, in private houses from 1180.
+     (_Anderson_, Origin of Commerce, s. a.) Even in 1567, it was
+     so rare that during the absence of the lords from their
+     country seats, the panes were taken out and stored for safe
+     keeping. (_Eden_, State of the Poor, I, 77.) As to how
+     Scotland developed in this respect still later, see
+     _Buckle_, History of Civilization in England, II, 172.]
+
+     [Footnote 227-2: In our day, at the breakfast of a German of
+     the middle class, may be found East Indian coffee, Chinese
+     tea, West Indian sugar, English cheese, Spanish wine, and
+     Russian caviar, without any surprising degree of luxury.
+     Compare _Gellius_, N. A., VII, 16.]
+
+     [Footnote 227-3: In England, the transition is noticeable,
+     especially under Elizabeth: _Hume_ History, ch. 44, app. 3.
+     In France, under Louis XIV.; _Voltaire_, Si�cle de Louis,
+     XIV., ch. 29.]
+
+     [Footnote 227-4: Poesias Castellanas anteriores al Siglo XV;
+     Tom. I, 347, 327. _Roscher_, loc. cit. _J. Voight_, in
+     _Raumer's_ historischem Taschenbuche, 1831, 290; 1835, 324,
+     seq. Thus, one of Henry VIII's wives, in order to get salad,
+     had first to send for a gardener from Flanders; while at the
+     time, a single ship imported into England from 3,000 to
+     4,000 pieces of clothing in gold brocade, satin or silk.
+     (_Anderson_, a. 1509, 1524, 4; Henry VIII, c. 6.)]
+
+     [Footnote 227-5: Irish linen, worth from 30 to 35 shillings,
+     is often provided with a label which cost 5 shillings.
+     (_Kotelmann_, Statistische Uebersicht der landwirthschaftl.
+     und industriellen Verh�ltnisse von Oestereich und dem
+     Zollverein, 215.)]
+
+     [Footnote 227-6: Compare _Kohl_, Reise in Deutschland, II,
+     18, 250. _Roscher_, in the G�ttinger Studien, 1845, II, 403,
+     ff. About 1777, _B�sch_ described the difference of goods
+     manufactured in England "for the continent and home
+     consumption," as being just the same as the difference now
+     between goods for Africa and goods for Europe. (Darstellung
+     der Handlung, Zusatz, 89.)]
+
+
+SECTION CCXXVIII.
+
+HISTORY OF LUXURY IN HIGHLY CIVILIZED TIMES.
+
+The direction which luxury takes in times when civilization is advanced,
+is towards the real, healthy and tasteful enjoyment of life, rather than
+an inconvenient display. This tendency is exceedingly well expressed by
+the English word _comfort_, and it is in modern England that the luxury
+of the second period has found it happiest development. It is found side
+by side with frugality; and it frequently even looks like a return to
+the unaffected love of nature.[228-1]
+
+Thus, since Rousseau's time,[228-2] the so-called English gardens have
+dropped the former Versailles-Harlem style. Thus, too, modern fashion
+despises the awkward long wig, powdering etc.[228-3] Instead of garments
+embroidered, or faced with fur or lace, and instead of the galloon hat
+worn under Louis XIV. and Louis XV., the French revolution has
+introduced the simple citizen frock-coat and the round silk hat. The
+"exquisite" may even with these outshine others by the form he selects,
+the material he wears, or by frequent change, but much less strikingly
+than before.[228-4] Since every one, in the purchase of household
+furniture, etc., looks more to its use than to the honor of being sole
+possessor of an article or having something in advance of everybody
+else, it becomes possible for industry to manufacture its products in
+much larger quantities, and after the same model, and thus to furnish a
+much better article for the same price.[228-5] Besides, more recent
+industry has produced a multitude of cheap substitutes for costly
+objects of luxury: plated silver-leafing, cotton-velvet goods,
+etc.;[228-6] besides the many steel engravings, lithographs etc., which
+have exerted so beneficent an influence on �sthetic education.
+
+In the England of our days, the houses are comparatively small, but
+convenient and attractive, and the salutary luxury of spending the
+pleasant season in the country very general.[228-7] The country-roads
+are narrow but kept in excellent order and provided with good
+inns.[228-8] More value is here attached to fine linen cloth than to
+lace;[228-9] to a few but nourishing meat-dishes than to any number of
+sauces and confections of continental kitchens.[228-10] Especially is
+the luxury of cleanliness, with its morally and intellectually
+beneficial results found only in well-to-do and highly cultured nations.
+As formerly in Holland, so now in England, it is carried to the highest
+point of development. In the latter country, the tax on soap is
+considered a tax on an indispensable article.[228-11] The reverse is the
+case in North America, if we can believe the most unprejudiced and
+friendly observers.[228-12] The person who lives in a log-house must, to
+feel at ease within his four walls, first satisfy a number of necessary
+wants.[228-13]
+
+     [Footnote 228-1: The reformation of the sixteenth century
+     had a remarkable tendency towards natural and manful
+     fashions, as contradistinguished from the immediately
+     preceding and the immediately following periods. Compare _J.
+     Falke_, Deutsche Trachten und Modenwelt, II, 1858.]
+
+     [Footnote 228-2: _J. J. Rousseau_, N. H�loise, II, L. 11.
+     Compare _Keysler_, Reise, I, 695.]
+
+     [Footnote 228-3: That a similar transition marked an epoch
+     in the history of Grecian morals was recognized even by
+     _Thucydides_, I, 6; compare _Asios_, in _Athen._, XII, 528.]
+
+     [Footnote 228-4: It will always remain a want to own clothes
+     for every day wear and festal occasions. The frock coat
+     satisfies this want in the cheapest way. As soon as people
+     cease to distinguish clothing for festal occasions by the
+     cut, gold-embroidery, fur-facing, etc. will appear again,
+     which would necessarily prove a great hardship to the
+     propertyless classes of the educated, and even to the higher
+     classes.]
+
+     [Footnote 228-5: On the striking contrast presented in this
+     respect by the English and French, and even Russian customs,
+     see _Storch_, Handbuch, II, 179 ff. _J. B. Say_, Cours
+     pratique, translated into German by _Morstadt_, I, 435 ff.;
+     Deutsche Vierteljahrsschrift, 1853, I, 182.]
+
+     [Footnote 228-6: Paper-hangings, instead of costly gobelins
+     and leather hangings, were not known in France until after
+     1760, nor in the rest of Europe until much later. Busts of
+     plaster were (_Martial_, IX, 17, and _Juvenal_, II, 4) usual
+     among those who were less well off.]
+
+     [Footnote 228-7: Similarly even in _Giov. Villani_, XI, 93,
+     the villas of the highly cultured Florentines appear finer
+     than their city houses, while in Germany, at that time, even
+     the richest citizens lived only in the city.]
+
+     [Footnote 228-8: Sidewalks in the cities, recommended by _J.
+     J. Rousseau_, as a popular convenience and as a safeguard
+     against the carriage-aristocracy.]
+
+     [Footnote 228-9: In France, the luxury of lace was conquered
+     by Marie Antoinette, but still more effectually by the
+     Revolution. Previous to that time, many Parisians wore four
+     manchettes to each shirt. (_Palliser_, History of Lace,
+     1865.)]
+
+     [Footnote 228-10: During the middle ages, strongly seasoned
+     food, ragouts, etc., were more in favor than in even France
+     to-day; compare _Legrand d'Aussy et Roquefort_, Histoire de
+     la Vie prive� des Fran�ais, passim. The wine even, at that
+     time, used to be mixed with roots: _vin de romarin_,
+     _clairet_, _hippocras_, (_W. Wackernagel_, Kl. Schriften I,
+     86, 7.) The French kitchen became simpler and more natural,
+     only after the middle of the 18th century. (_Roquefort_,
+     III, 343.)]
+
+     [Footnote 228-11: The taxed consumption of soap amounted in
+     England in 1801 to 4.84 and in 1845, 9.65 pounds per capita.
+     (_Porter_, Progress of the Nation, V, 5, 579.) Soap-boiling
+     in London dates from 1520 only. Before that time, all white
+     soap was obtained from the continent. (_Howell_,
+     Londinopolis, 208.) _Erasmus_ charged that England, in his
+     time, was an exceedingly dirty country. The Italians, on the
+     other hand, were at that time greatly distinguished above
+     northern people, especially the Germans, by their
+     cleanliness. (_Buckhardt_, Kultur der Renaissance, 295.) The
+     Vienna river-baths after 1870, _Nicolai_, Reise, III, 17,
+     mentions as something deserving special note. The Leipzig
+     river-baths date from 1774.]
+
+     [Footnote 228-12: _Birkbeck_, Notes on America, 39. Even in
+     New York, it is not very long since there were no common
+     sewers. Just as characteristic is the uncleanliness of the
+     South African _boers_ (_Mauch_, in _Petermann's_
+     Mittheilungen, Erg�nz-Heft, XXVII, 23), when compared with
+     the celebrated cleanliness of the old Dutch.
+
+     Americans will certainly not agree with the "friendly
+     and unprejudiced" observers mentioned in the text; for
+     no one acquainted with genuine American home-life can
+     deny that cleanliness is an American characteristic. It
+     is only justice to the author to say that the above
+     note (12), so far as it relates to America, appeared in
+     the second edition of his work, and probably in the
+     first; and that he is not so much to be blamed for it
+     as the unfriendly and prejudiced, if not ignorant
+     observers. It may be said, however, that, from the use
+     of the word "log-house," in the context, the author
+     does not intend to apply this remark to the older
+     settlements.--TRANSLATOR.]
+
+     [Footnote 228-13: The most frightful uncleanliness prevails
+     among the inhabitants of polar countries, who never bathe,
+     because of the climate, avoid all ventilation, and because
+     of the leathern clothing which they smear with grease, etc.
+     The Tunguses consider the after-birth cooked or roasted as a
+     great delicacy. "Fathers and mothers wipe their children's
+     noses with their mouth, and gulp the secretion down."
+     (_Georgi_, Beschreib. aller Nationen des russ. Reiches, I,
+     287.) Among the Koruks, the suitor rinses his mouth with his
+     sweetheart's water. (loc. cit., I, 349, 353.) Compare
+     _Klemm_, Kulturgeschichte, III, 24, 57. In warmer climates,
+     even less civilized nations are clean, for instance in the
+     East and South-Sea Islands, etc. All the more surprising is
+     the uncleanliness of the Hottentots and Bushmen, where the
+     natural color is observable only under the eyes, where the
+     tears produced by too much smoke has washed away the crust
+     of dirt which, with this exception, covers the whole body.
+     (_Klemm_, Kulturgeschichte, 333.) How long it takes for
+     cleanliness to become a national trait, may be inferred from
+     the history of water-closets, when, for instance, their
+     introduction into every house during the 16th and even the
+     17th century, had to be provided for by law in Paris.
+     (_Beckmann_, Beitr�ge, II, 358 ff.) The G�ttingen statutes
+     of 1342 had to expressly prohibit persons to _merdare_ in
+     public wine-cellars where persons ate and drank together.
+     (_Spittler_, Gesch. Hannovers, I, 57.) Similarly in the
+     courts of the German princes. On the other hand,
+     universality of water-closets in England to-day.
+
+     In ancient times, too, the uncleanliness of the Spartans in
+     body and clothing was very surprising to the Athenians:
+     _Xenoph._, Resp. Laced., II, 4; _Plutarch_, Lycurg, 16.
+     _Just._, Lac., 5. Still more that of many barbarians, for
+     instance of the Illyrians: _Stobaeus_, V, 51, 132; _Gaisf.
+     Aelian._, V, H. IV, 1. The ancient Romans bathed only once a
+     week (_Seneca_, Epist., 86), while under the Empire, "the
+     baths embraced and filled up the whole life of man and all
+     his wishes." (_Gerlach._) Compare _Becker_, Gallus, II, 10
+     ff.; _Lamprid_, V, Comm., 11.]
+
+
+SECTION CCXXIX.
+
+EXTENT OF LUXURY IN HIGHLY CIVILIZED TIMES.
+
+The luxury of this second period fills the whole of life and permeates
+every class of people. Hence we may most easily determine the degree of
+development a people have attained by the quantity of commodities of a
+finer quality which are, indeed, not indispensable to life, but which it
+is desirable should be consumed on as extensive a scale as possible by
+the nation, for the sake of the fullness of life and the
+freshness[229-1] of life to which they minister.
+
+Thus, for instance, as civilization has advanced, there has been almost
+everywhere a transition to a finer quality of the material of which
+bread is made. The number of consumers of white bread in France in 1700,
+was 33 per cent. of the population; in 1760, 40; in 1764, 39; in 1791,
+37; in 1811, 42; in 1818, 45; in 1839, 60 per cent.[229-2] About 1758,
+in England and Wales, 3,750,000 of people lived on wheat bread; on
+barley bread, 739,000; on rye bread, 888,000; on oat bread, 623,000. The
+cultured southeastern population had almost nothing but wheat bread,
+while in the north and northwest, oat bread continued to be used a long
+time; and in Wales only 10 per cent. of the population ate wheat bread.
+This condition of things in England has since been much improved. But,
+at the extremities of the Hebrides, nine-tenths of the population still
+live on barley bread; and in Ireland it was estimated, in 1838, that
+with 8,000,000 inhabitants, potatoes were the chief article of food of
+5,000,000, and oat bread of 2,500,000.[229-3]
+
+And so, the consumption of meat in cities is uniformly much larger than
+in the country. In the cities of the Prussian monarchy and subject to
+the slaughter-house tax, it amounted in 1846, per capita: in East
+Prussia, to 61 lbs.; in Pommerania, to 66; in Posen, to 70; in West
+Prussia, to 71; in Saxony, to 75; in the Rhine Province, to 83; in
+Silesia, to 86; in Brandenburg, to nearly 104; in Berlin alone, to 114:
+an average in the whole country, however, of scarcely 40 lbs. per
+capita. (_Dietrici._) In the kingdom of Saxony, the average consumption
+of beef and pork was, shortly before 1866, about 50 lbs.; in Dresden
+alone, 86.7; in Leipzig, 136.9 lbs.[229-4] The consumption of meat in
+England is exceedingly great, so that, for instance, in several orphan
+asylums in London, the daily meat ration amounts to an average of from
+0.23 to 0.438 lbs. The meat-consumption of a well-to-do family, children
+and servants included, Porter estimates at 370 lbs. per capita per
+annum. The meat ration of soldiers in the field amounts in England to
+676 grammes a day; in France, to 350.[229-5]
+
+The consumption of sugar in 1734, in England, was about 10 lbs. per
+capita; in 1845, in the whole of the British Empire, 20-1/3 lbs.; in
+1849, almost 25 lbs.; in 1865, over 34 lbs.; but it must not be
+overlooked here, that in Ireland the consumption of sugar per capita was
+scarcely over 8 lbs.[229-6] In the German Zollverein, the consumption of
+sugar, in 1834, amounted to an average of 2-1/2 lbs. per capita; in
+1865, to more than 9 lbs. In France, the consumption of the same article
+rose from 1.33 kilogrammes, the average from 1817 to 1821, to 7.35 lbs.
+in 1865.[229-7] The population of the Zollverein rose 25.8 per cent.
+between 1834 and 1847, while the importation of coffee increased 117.5
+per cent.; of spices, 58.2; southern fruits, 34.5, and cocoa, 246.2 per
+cent.[229-8]
+
+A great many of vegetables and fruits, which seem to us to be almost
+indispensable articles of subsistence, have been cultivated only a short
+time. Thus the English have been acquainted with artichokes, asparagus,
+several kinds of beans, salad, etc. only since 1660.[229-9] Even in
+France, the finer kinds of fruits have appeared on the tables of the
+middle class only since the beginning of the last century.
+
+The per capita consumption of wool in England, about a generation ago,
+amounted to about 4 lbs. a year; in Prussia to 1.67; of cloth, to 5.76
+and 2.17 ells; of leather, to 3.03 and 2.22 lbs. respectively.[229-10]
+Of silk goods, England consumes half as much as the rest of all Europe,
+and an Englishman from 5 to 6 times as much as a Frenchman, although
+England does not produce a single pound of raw silk.[229-11]
+
+     [Footnote 229-1: Thus, for instance, the modern enjoyments
+     of coffee, tea, newspapers, tobacco etc., promote
+     domesticity with which antiquity was so little acquainted.
+     _Zaccharia_, Vierzig B�cher, VI, 60.]
+
+     [Footnote 229-2: The food of the French people has improved
+     also in point of quantity. At the beginning of the
+     eighteenth century, of cereals there were 472 liters per
+     capita, at present there are 541 liters; and in addition,
+     now, 240 liters of potatoes and vegetables more than then.
+     Compare _Moreau de Joann�s_, Statistique de l'Agriculture de
+     la France, 1848, and the same writer's Statistique c�r�ale
+     de la France, in the Journal des Economistes, 1842, Janv. On
+     the recent decrease or increase in the consumption of meat,
+     see the very different estimates of _M. Chevalier_, Cours.,
+     I, 113 seq., and Journal des Economistes, Mars, 1856, 438
+     ff.]
+
+     [Footnote 229-3: _Ch. Smith_, Tracts on the Corn Trade,
+     1758, 182. _Eden_, State of the Poor, I, 563, seq. In
+     _McCulloch_, Statist, I, 316, 466 ff., 548. Moreover,
+     _Rogers_ says that English workmen in the middle ages, for
+     the most part, consumed wheat bread. (Statist. Journal,
+     1864, 73.) About the middle of the 13th century, only from
+     11 to 12 _malters_ of wheat were produced on the estates of
+     the bishop of Osnabr�ck; about 470 of oats, 300 of rye, and
+     120 of barley. (_J. M�ser_, Osnabr�ck, Gesch., Werke, VII,
+     2. 166.) Even beer was brewed from oats in the earlier part
+     of the middle ages. (_Gu�rard_, Polyptiques, I, 710 ff.) The
+     ancients, also, in their lower stages of civilization, lived
+     on barley bread by way of preference, and went over to wheat
+     only at a later period; compare _Plin._, H. N. XVIII, 14.
+     _Heracl._, Pont, fr. 2. _Athen._, IV., 137, 141. _Plutarch_,
+     Alcib., 23. As to how, in Rome, the transition from _far_ to
+     the much more costly _triticum_, was connected with the
+     extension of the hide of land from 2 to 7 _jugera_, see _M.
+     Voigt_ in the Rhein. Museum f. Philol., 1868.]
+
+     [Footnote 229-4: To this, in Saxony, must be added about
+     from 6 to 7 pounds of veal and mutton. The recent increase
+     in the consumption of meat in Saxony is very encouraging:
+     1840, about 30 lbs. of beef and pork per capita; 1851-57, 40
+     lbs. (S�chs. Statist. Ztschr., 1867, 143 seq.) On the other
+     hand, _Schmoller_ estimated the consumption of meat in
+     general in Prussia, in 1802, at 33.8; in 1816, at 22.5; in
+     1840, at 34.6; in 1867, at 34.9 lbs. (_F�hling_, N. Landw.
+     Zeitg., XIX; Jahrg. Heft., 9 seq.) Paris consumed, in 1850,
+     145 pounds of butcher's meat per capita; in 1869, 194
+     pounds. In the year of the revolution, 1848, the consumption
+     declined 45 per cent.; the consumption of wine in barrels,
+     16 per cent.; in bottles, 44 per cent.; of sea-fish, 25 per
+     cent.; of oysters, 24 per cent.; of beer, 20 per cent.; of
+     eggs, 19 per cent.; of butter, 13 per cent.; of fowl, 6 per
+     cent. (_Cl. Juglar_, in the Journal des Economistes, March,
+     1870.)]
+
+     [Footnote 229-5: _Porter_, Progress of the Nation, V, 5, 591
+     ff.; _Hildesheim_, Normaldiet, 52 ff. Well-known English
+     popular song: "Oh, the roast beef of old England" etc. Even
+     at the end of the 17th century one-half of the nation
+     partook of fresh meat scarcely once or twice a week; most of
+     that consumed was salted. (_Macaulay_, History of England,
+     ch. 3.) But even _Boisguillebert_, Trait� des Grains, II, 7,
+     characterizes the English as great beer-drinkers and
+     meat-eaters, from the highest class to the lowest, while the
+     French consumed almost nothing but bread. Similarly _J. J.
+     Becher_, Physiologie, 1678, 202, 248, on the great
+     consumption of meat and sugar in England.]
+
+     [Footnote 229-6: _Anderson_, Origin of Commerce, a. 1743;
+     _Porter_, Progress, V, 4, 350 ff.; Meidinger, 154 ff.;
+     Memorandum respecting British Commerce, etc., before and
+     since the Adoption of Free Trade, 1866. On men-of-war each
+     man gets 35-45 lbs. a year; in the poorhouse, old men
+     22-3/4. (_Porter._)]
+
+     [Footnote 229-7: In Henry IV.'s time, in France, sugar was
+     sold by the apothecaries by the ounce!]
+
+     [Footnote 229-8: _Deiterici_, Statist. Uebersicht des
+     Verkehrs, etc. im Zollvereine, 4; Fortsetzung, 168 ff., 208,
+     265, 599. Thus, in Great Britain, the population between
+     1816 and 1828 grew, from 13-1/2 million to nearly 16
+     million. On the other hand, consumption, when the average
+     from 1816 to 1819 is compared with that from 1824 to 1828,
+     increased in a much greater proportion: soap, from 67-3/4 to
+     100 million pounds; coffee, from 7,850,000 to 12,540,000
+     pounds; starch, from 3-1/5 to 6-1/3 million pounds. (Quart.
+     Rev., Nov., 1829, 518.) The consumption of tea per capita in
+     1801 was 1.5 lbs., in 1871, 3.93 lbs. (Statist. Journ.,
+     1872, 243.) In the matter of illumination, a very beneficent
+     luxury has been obtained, inasmuch as, spite of the fact
+     that gas-light is so generally used in recent times, i. e.,
+     since 1804, the consumption of oil has very much increased,
+     on account of the lamps now so much in favor; and that of
+     candles also has increased, relatively speaking, more
+     rapidly than the population. The illumination produced is
+     much richer now than formerly, a fact which, besides its
+     sanitary advantages, has had a good influence in diminishing
+     street robberies. (_Julius_, Gef�ngnisskunde, XXII.) During
+     the middle ages, candles were very dear; according to
+     _Rogers_ (I, 415) 1-1/3 to 2 shillings per pound.]
+
+     [Footnote 229-9: Present state of England, 1683, III, 529;
+     compare _Storch_, Handbuch, II, 337 seq.]
+
+     [Footnote 229-10: _Dieterici_, Statist. Uebersicht, 321 ff.,
+     363, 399.]
+
+     [Footnote 229-11: _Bernouilli_, Technologie, II, 223. It is
+     a striking symptom of the wealth or ostentation of the later
+     period of the Empire that, according to _Ammian. Marcell_,
+     (XXIII, 258-ed. Paris, 1636) silk goods were a want even
+     among the lower classes, notwithstanding the fact that they
+     had to be imported from China.]
+
+
+SECTION CCXXX.
+
+EQUALIZING TENDENCY OF LATER LUXURY.
+
+The whole social character of this luxury has something
+equalizing[230-1] in it; but it supposes particularly that there is not
+too marked a difference in the resources of the people.
+
+A proper gradation of national wants is best guarantied by a good
+distribution of the national resources.[230-2] The more unequal the
+latter is, the more is there spent on vain wants instead of on real
+ones; and the more numerous are the instances of rapid and even immoral
+consumption. Where there are only a few over-rich men, more foreign
+products and products of capital are wont to be called for than home
+products and productions of labor; and luxury especially despises all
+those commodities manufactured in large institutions.[230-3] Every
+change in the consumption-customs of a people, in this respect, should
+be most carefully observed; thus, for instance, whether brandy is
+exchanged for beer, tobacco for meat, cotton for cloth, or the
+reverse.[230-4]
+
+One of the characteristics of this period is the endeavor to possess the
+best quality of whatever is possessed at all, and to be satisfied with
+less of it rather than purchase more of an inferior quality. This is,
+essentially, to practice frugality, inasmuch as certain
+production-services remain the same whether the commodity is of the best
+or the worst quality, and that commodities of the best quality are more
+superior to the worst in intrinsic goodness than they are in price. But
+this course supposes a certain well-being already existing.
+
+In this period, also, the luxury of the state is wont to take the
+direction of those enjoyments which are accessible to all.[230-5]
+
+     [Footnote 230-1: Formerly the dress of citizens was a weak
+     imitation of the court costume: at present the reverse is
+     the case, and the court costume is only a heightening of the
+     citizen costume. Compare _Riehl_, B�rgerl. Gesellschaft,
+     191.]
+
+     [Footnote 230-2: _Helvetius_, De l'Homme, 1771. sec. VI, ch.
+     5.]
+
+     [Footnote 230-3: _J. B. Say_, Trait�, II, 4; _Sismondi_, N.
+     P., IV, ch. 4. As early a writer as _Lauderdale_, Inquiry,
+     358 ff., thought the social leveling of modern times would
+     promote English industry. In the East Indies, on the other
+     hand, only the most expensive watches, rifles, candelabras
+     etc. were sold, because the nabobs were the only persons who
+     created any demand for European commodities (312 ff.). _Adam
+     Smith_, Wealth of Nat., II, ch. 3, draws a very correct
+     distinction between the luxury of durable goods and that of
+     those which perish rapidly; the former is less calculated to
+     impoverish an individual or a whole nation; and hence it is
+     much more closely allied to frugality. Similarly even
+     _Isocrates_, ad Niccol., 19; _Livy_, XXIV, 7; _Plin._, H.
+     N., XIII, 4; _Mariana_, 1598, De Rege et Regis Institutione,
+     III, 10; _Sir W. Temple_, Works, I, 140 seq., who found this
+     better kind of luxury in Holland: _Berkeley_, Querist, No.
+     296 ff.]
+
+     [Footnote 230-4: _Schmoller_, loc. cit., considers it no
+     favorable symptom, that in Prussia, between 1802 and 1867,
+     the per capita consumption of milk decreased and that of
+     wool increased. According to _L. Levi_, the consumption of
+     brandy in England decreased from 1854 and 1870, from 1.13 to
+     1.01 gallons per capita; but, on the other hand, the
+     consumption of malt increased from 1.45 to 1.84 bushels, and
+     the consumption of wine from 0.23 to 0.45 gallons. The
+     number of licenses to retail spirituous liquors was, in
+     1830, 6.30 per thousand of the population; in 1860-69, only
+     5.57. (Statist. Journal, 1872, 32 ff.)]
+
+     [Footnote 230-5: Compare _Cicero_, pro Murena, 36. The
+     Athenians under Pericles, in times of peace, spent more than
+     one-third of their state-income on plastic and architectural
+     works of art. The annual state-income amounted to 1,000
+     talents (_Xenoph._, Exp. Cyri, VII, 1, 27), while the
+     propylea alone cost, within 5 years, 2,012 talents.
+     (_B�ckh_, Staatsh., I, 283.) On the other hand,
+     _Demosthenes_ complains of the shabbiness of public
+     buildings, and the magnificence of private ones in his time.
+     (adv. Aristocr., 689, Syntax., 174 seq.)
+
+     _Demetrius Phalereus_ blames even Pericles, on account of
+     his extravagance on the propylea, although Lycurgus had
+     been, not long before, addicted to luxury after the manner
+     of Pericles. (_Cicero_, De Off., II, 17.)]
+
+
+SECTION CCXXXI.
+
+THE ADVANTAGES OF LUXURY.
+
+The favorable results which many writers ascribe to luxury in general
+are true evidently only of this period. And thus luxury, inasmuch as it
+is a spur to emulation, promotes production in general; just as the
+awarding of prizes in a school, although they can be carried away only
+by a few, excites the activity of all its attendants. A nation which
+begins to consume sugar will, as a rule, unless it surrenders some
+previous enjoyment, increase its production.[231-1] In countries where
+there is little or no legal security, in which, therefore, people must
+keep shy of making public the good condition they are in, this
+praise-worthy side of luxury is for the most part wanting.[231-2]
+
+All rational luxury constitutes a species of reserve fund for a future
+day of need. This is especially true of these luxuries which take the
+form of capital in use (_Nutzkapitalien_.) Where it is customary for
+every peasant girl to wear a gold head-dress,[231-3] and every
+apprentice a medal, a penny for a rainy day is always laid by among the
+lower classes. The luxury which is rapidly consumed has a tendency in
+the same direction. Where the majority of the population live on
+potatoes, as in Ireland, where, therefore, they are reduced to the
+smallest allowance of the means of subsistence, there is no refuge in
+case of a bad harvest. A people on the other hand, who live on wheat
+bread may go over to rye bread, and a people who live on rye bread to
+potatoes. The corn that in good years is consumed in the making of
+brandy may, in bad years, be baked into bread.[231-4] And the oats
+consumed by horses kept as luxuries may serve as food for man.
+Pleasure-gardens (_Lustg�rten_) may be considered as a kind of last
+resort for a whole people in case of want of land.[231-5] [231-6]
+
+     [Footnote 231-1: Compare _Benjamin Franklin's_ charming
+     story, Works I, 134 ff.; ed. Robinson. _Colbert_ recommended
+     luxury chiefly on account of its service to production.]
+
+     [Footnote 231-2: Turkish magnates who keep several
+     magnificent equipages ride to the sultan's in a very bad
+     one. Risa Pascha, when at the height of his power, had his
+     house near a villa of the sultan painted in the plainest and
+     most unsightly manner possible. The walls of a park in
+     Constantinople painted half in red and half in blue, to give
+     it the appearance of being two _gardens_. (Alg. Zeitung, 16
+     Juli, 1849.) In Saxony, between 1847 and 1850, the number of
+     luxury horses diminished from 6.11 to 5.64 per cent. of the
+     total number of horses in the kingdom. (_Engel_, Jahrbuch,
+     I, 305.) In the same country there were coined in 1848 over
+     64,000 silver marks, derived from other sources than the
+     mines. (_Engel_, Statis. Zeitschr. I, 85.) In England, on
+     the other hand, the number of four-wheeled carriages
+     increased more than 60 per cent. between 1821 and 1841,
+     while the population increased only 30 per cent. (_Porter_,
+     Progress, V, 3, 540.)]
+
+     [Footnote 231-3: Such a head-dress may very easily be worth
+     300 guldens in Friesland. Gold crosses worn by the peasant
+     women about Paris. (_Turgot_, Lettre sur la Libert� du
+     Commerce des Grains.)]
+
+     [Footnote 231-4: So far it is of some significance, that
+     nearly all not uncivilized nations use their principal
+     article of food to prepare drinks that are luxuries. Thus,
+     the Indians use rice, the Mexicans mais, the Africans the
+     ignam-root. It is said that in ancient Egypt, beer-brewing
+     was introduced by Osiris. (_Diodor._, I, 34.) Compare
+     _Jeremy Bentham_, Trait� de L�gislation, I, 160. _Malthus_,
+     Principle of Population, I, ch. 12; IV, ch. 11.]
+
+     [Footnote 231-5: While in thinly populated North America,
+     space permits the beautiful luxury in cemeteries of
+     ornamenting surroundings of each grave separately (_Gr.
+     G�rtz_, Reise, 24), the Chinese garden-style seeks to effect
+     a saving in every respect. In keeping with this is the fact
+     that animal food has there been almost abolished. Compare,
+     besides, _Verri_, Meditazioni, XXVI, 3.]
+
+     [Footnote 231-6: _Garve_ thinks that luxury, when it takes
+     the direction of a great many trifles, little conveniences,
+     etc., has the effect of distracting the people. Here there
+     are few men of towering ambition or of inextinguishable
+     revenge, but at the same time, few entirely unselfish and
+     incorruptible patriots. (_Versuche_, I, 232.)]
+
+
+SECTION CCXXXII.
+
+LUXURY IN DECLINING NATIONS.
+
+In declining nations, luxury assumes an imprudent and immoral character.
+Enormous sums are expended for insignificant enjoyments. It may even be
+said that costly consumption is carried on there for its own sake. The
+beautiful and the true enjoyment of life makes place for the monstrous
+and the effeminate.
+
+Rome, in the earlier part of the empire, affords us an example of such
+luxury on the most extensive scale.[232-1] Nero paid three hundred
+talents for a murrhine vase. The two acres (_Morgen_) of land which
+sufficed to the ancient citizens for a farm (_Acker_) were not now
+enough to make a fish-pond for imperial slaves. The sums carried by the
+exiles with them, to cover their traveling expenses and to live on for a
+time, were now greater than the fortunes of the most distinguished
+citizens had been in former times.[232-2] There was such a struggle
+among the people to surpass one another in procuring the freshest
+sea-fish that, at last, they would taste only such as they had seen
+alive on the table. We have the most exalted descriptions of the
+beautiful changes of color undergone by the dying fish; and a special
+infusion was invented to enable the epicure better to enjoy the
+spectacle.[232-3] Of the transparent garments of his time, Seneca says
+that they neither protected the body nor covered the nakedness of
+nature. People kept herds of sheep dyed in purple, although their
+natural white must have been much more agreeable to any one with an eye
+for the tasteful.[232-4] Not only on the roofs of houses were fish-ponds
+to be seen, but gardens even hanging on towers, and which must have been
+as small, ugly and inconvenient as they were costly.[232-5] Especially
+characteristic of the time was the custom of dissolving pearls in wine,
+not to make it more palatable, but more expensive.[232-6] The emperor
+Caligula, from simple caprice, caused mountains to be built up and cut
+away: _nihil tam efficere concupiscebat, quam, quod posse effici
+negaretur_.[232-7] This is the real maxim of the third period of luxury!
+People changed their dress at table, inconvenient as it was to do so,
+occasionally as often as eleven times. Perfumes were mixed with the wine
+that was drunk, much as it spoiled its taste, only that the drinkers
+might emit sweet odors from every pore. There were many so used to being
+waited on by slaves that they required to be reminded by them at what
+times they should eat and when they should sleep. It is related of one
+who affected superiority over others in this respect, that he was
+carried from his bath and placed on a cushion, when he asked his
+attendant: "Am I sitting down now?"[232-8] It is no wonder, indeed, that
+an Apicius should reach out for the poisoned cup when his fortune had
+dwindled to only _centies sestertium_, _i. e._, to more than half a
+million thalers.[232-9]
+
+In this last period, the coarse debauchery of the earlier periods is
+added to the refined. Swarms of servants, retinues of gladiators who
+might be even politically dangerous,[232-10] monster banquets, at which
+C�sar, for instance, entertained the whole Roman people, colossal
+palaces such as Nero's _aurea domus_, which constituted a real city;
+annoying ostentation in dress[232-11] again becomes the order of the
+day. The more despotic a state becomes, the more is the craving for
+momentary enjoyment wont to grow; and for the same reason that great
+plagues diminish frugality and morality.[232-12]
+
+     [Footnote 232-1: _Meierotto_, Sitten und Lebensart des
+     R�mer, II, 1776; _Boettiger_, Sabina, II, 1803;
+     _Friedl�nder_, Darstellungen aus der Sittengeschichte Roms,
+     Bd. III, 1868; which latter work has been written with the
+     aid of all that modern science can afford.]
+
+     [Footnote 232-2: _Plin._, H. N., XXXVII, 7; XVIII, 2;
+     _Seneca_, Quaest. Natur., I, 17; Consol. ad. Helviam, 12.]
+
+     [Footnote 232-3: _Seneca_, Quaest. Natur., III, 18; _Plin._,
+     H. N., IX, 30.]
+
+     [Footnote 232-4: _Seneca_, De Benef., VII, 9; _Plin._, N.
+     N., VIII, 74.]
+
+     [Footnote 232-5: _Valer. Max._, IX, 1; _Seneca_, Epist, 122.
+     Thus Hortensius sprinkled his trees with wine. _Macrob._,
+     Sat., III, 13.]
+
+     [Footnote 232-6: Besides Cleopatra, Caligula especially did
+     this frequently. Compare also _Horat._, Serm., II, 3, 239
+     ff. Similarly, the luxury of the actor Aesopus, when he
+     placed a dish worth 6,000 _louis d'or_ before his guests,
+     consisting entirely of birds which had been taught to sing
+     or speak. _Pliny_, H. N., X, 72. Compare _Horat._, loc.
+     cit., 345.]
+
+     [Footnote 232-7: _Sueton._., Caligula, 37. _Hoc est luxuriae
+     propositum, gaudere perversis. Seneca_., Epist., 122.
+     According to the same letter of Seneca, the luxury of Nero's
+     time had its source rather in vanity than in sensuality and
+     gluttony.]
+
+     [Footnote 232-8: _Martial_, V, 79; _Plin_., H. N. XIII, 5.
+     _Seneca_, De Brev. Vit�. I, 12.]
+
+     [Footnote 232-9: _Seneca_, Cons. ad Helviam 10, _Martial_,
+     III, 22.]
+
+     [Footnote 232-10: Hence, early limited by law. _Sueton._.
+     Caes. 10. Augustus limited the exiles to taking 20 slaves
+     with them: _Dio Cass._ VII, 27. Special value attached to
+     dwarfs, buffoons, hermaphrodites, eunuchs, precisely as
+     among the moderns in the times of the degenerated absolutist
+     courts, the luxury of which is closely allied in many
+     respects to that of declining nations.]
+
+     [Footnote 232-11: Caligula's wife wore, on ordinary
+     occasions, 40,000,000 sesterces worth of ornaments. _Plin._
+     H. N. IX, 58.]
+
+     [Footnote 232-12: _Gibbon_, History of the Decline and Fall
+     of the Roman Empire, ch. 27. What a parallel between this
+     later Roman luxury and the literary taste represented for
+     instance by Seneca!
+
+     Let any one who would embrace the three periods of luxury in
+     one view, compare the funeral ceremonies of the Greek age of
+     chivalry (_Homer_, Il.), with those in _Thucyd._ (II, 34,
+     ff.), _Demosth._ (Lept., 499 seq.), and the interment of
+     Alexander the Great and, of his friend Hephaestion
+     (_Diodor._, XVII, 115, XVIII, 26 ff.) Sullas (Serv. ad
+     _Virgil_, �neid VI, 861. _Plutarch_, Sulla, 38), and that of
+     the wife of the emperor Nero (_Plin._, H. N. XII, 41).
+     _Roscher_, loc. cit. 66 ff.]
+
+
+SECTION CCXXXIII.
+
+LUXURY-POLICY.
+
+Sumptuary laws (_die Luxusgesetzgebung_) have been aimed, at all times,
+principally at the outlay for clothing, for the table and for
+funerals.[233-1] In most nations the policy of luxury has its beginning
+in the transition from the first to the second period of luxury above
+described.[233-2] The extravagant feasts, which remain of the first
+period, seem vulgar to the new public opinion which is created. On the
+other hand, the conveniences of life, the universality, the refinement
+and variety of enjoyments characteristic of the second period are not
+acceptable to the austerity of old men, and are put down as effeminacy.
+In this period the bourgeoisie generally begin to rise in importance,
+and the feudal aristocracy to decay. The higher classes see the lower
+approximate to them in display, with jealous eyes. And, hence, dress is
+wont to be graded in strict accordance with the differences of
+class.[233-3] But these laws must be regarded as emanating from the
+tendency, which prevails in these times, of the state to act as the
+guardian of its wards, its subjects. The authority of the state waxes
+strong in such periods; and with the first consciousness of its power,
+it seeks to draw many things into its sphere, which it afterwards
+surrenders.
+
+     [Footnote 233-1: Which of these three kinds of luxury
+     specially preponderated has always depended on the
+     peculiarities of national character. Thus, among the ancient
+     Romans, it was the second; among the French, the first. In
+     Germany the prohibitions relating to "toasts," or drinking
+     one another's health have played a great part. Thus the
+     well-known Cologne reformation of 1837. Compare _Seb.
+     M�nster_, Cosmogr., 326.]
+
+     [Footnote 233-2: In Greece, _Lycurgus'_ legislation seems to
+     have contained the first prohibition relating to luxury. No
+     one should own a house or household article which had been
+     made with a finer implement than an ax or a saw; and no
+     Spartan cook should use any other spice than salt and
+     vinegar. (_Plut._, De Sanitate, 12; _Lycurg._, 13. On
+     Periander, see _Ephorus_, ed. _Marx_, fr. 106. _Heracb._,
+     Pont. ed.; _K�hler_, fr. 5; _Diog. Laert._, I, 96 ff.) The
+     luxury-prohibitions of Solon were aimed especially at the
+     female passion for dress and the pomp of funerals. Those who
+     had the surveillance of the sex watched also over the luxury
+     of banquets. _Athen._, VI, 245; _Demosth._ in _Macart._,
+     1070. In Rome, there were laws regulating the pomp of and
+     display at funerals, dating from the time of the Kings; but
+     especially are such laws to be found in the twelve tables.
+     Lex Oppia de Cultu Mulierum in the year 215 before Christ. A
+     very interesting debate concerning the abolition of this law
+     in _Livy_, XXXIV, 1 ff. About 189, prohibition of several
+     foreign articles of luxury. _Plin._, H. N., XIII, 5, XIV,
+     16. Measures of Cato the censor. (_Livy_, XXXIX, 44.) First
+     law relating to the table, L. Orchia, in the year 187;
+     afterwards L. Fannia, 161, L. Didia, 143 before Christ.
+     (_Macrob._, Sat. V, 13; _Gellius_, N. A., II, 24. _Plin._,
+     H. N., X, 7.) After a long pause, sumptuary laws relating to
+     food, funerals and games of chance, constitute an important
+     part of Sulla's legislation.]
+
+     [Footnote 233-3: _Latus clavus_ of the Roman senators;
+     _annulus_ of the knights. In the latter middle age, the
+     knights were wont to be allowed to wear gold, and esquires
+     only silver; the former, damask; the latter, satin or
+     taffeta; but when the esquires also used damask, velvet was
+     reserved for the knights alone. _St. Palaye_, Das
+     Ritterwesen, by _Kl�ber_, IV, 107; II, 153 seq. But towards
+     the end of the middle ages many sumptuary laws were enacted
+     in cities by plebeian jealousy of the rich. The Venetian
+     sumptuary laws were passed on account of the anxiety of the
+     state that some rich men might shine above the rest of the
+     oligarchs.]
+
+
+SECTION CCXXXIV.
+
+HISTORY OF SUMPTUARY LAWS.
+
+As in Italy, Frederick II., in Aragon, Iago I., in 1234, in England,
+Edward III., by 37, Edward III., c. 8 ff., so in France Philip IV. was
+the first who busied himself seriously with sumptuary legislation;[234-1]
+that is the same king who had introduced in so many things the modern
+political life into France. (For instance, the ordinance of 1294,
+regulating apparel and the luxury of the table.) In the 14th century, we
+find sumptuary laws directed mainly against expense for furs, and in the
+16th mainly against that for articles of gold and silver. From the
+descriptions left us in such laws of the prohibited luxuries, we may learn
+as much of the history of technology and of fashion, as we may of the
+history of classes from the gradation of the things permitted. The fines
+imposed for violations of these laws, under Philip IV. went for the most
+part to the territorial lord; and in the 16th and 17th centuries to the
+foundation of charitable institutions. The state, as a rule, took no share
+of them; doubtless to avoid the odium which might attach to this kind of
+revenue.
+
+Beginning with the end of the 16th century, the sumptuary laws of France
+relating to the luxuries permitted to the several classes of the people
+disappear. The legislator ceases to be guided by moral considerations
+and begins to be influenced by reasons partaking of a commercial and
+police character; and here we may very clearly demonstrate the origin of
+the so-called mercantile or protective system. Thus, in the declaration
+of Louis XIV. dated December 12, 1644, we find a complaint, that not
+only does the importation of foreign articles of luxury threaten to rob
+France of all its gold and silver, but also that the home manufacture of
+gold cloth, etc., which at Lyons alone ate up 10,000 livres a week, had
+the same effect. Under Colbert, in 1672, it was specially provided for,
+in the prohibition of coarser silver ware, that all such ware should be
+brought to the mint.[234-2] In the edict of 1660, the king even says
+that he has in view especially the higher classes, officers, courtiers,
+etc., in whom it was his duty to be most deeply interested. To preserve
+the latter from impoverishment was the main object of the law.
+
+Under Louis XV. all sumptuary laws were practically a dead
+letter.[234-3] Their enforcement is, indeed, exceedingly difficult, as
+it is always harder to superintend consumption than production. The
+latter is carried on in definite localities, not unfrequently even in
+the open air. The former is carried on in the secrecy of a thousand
+homes. Besides, sumptuary laws have very often the effect to make the
+forbidden fruit all the sweeter. Where they are based on a difference of
+class, not only the passion for pleasure, but the vanity of the lower
+classes is an incentive to their violation.[234-4] Spite of the severity
+of the penalties attached to the violation of these laws, of redoubled
+measures of control, which are dreadful burdens on the intercourse
+between man and man,[234-5] the French government has been compelled to
+admit, after almost every internal commotion, and almost every external
+war, that its sumptuary laws fell into disuse.
+
+     [Footnote 234-1: Ordonnances de France, I, 324, 531. Worms
+     law of 1220. (_Riehl_, Pf�lzer, 246.) Braunschweig law of
+     1228, that at weddings there should not be over 12 plates
+     nor more than three musicians. (_Rehtmeyer_, Chron., 466.)
+     Danish sumptuary law of 1269. First law regulating dress in
+     Prussia in 1269. (_Voigt_, Gesch. von Preussen, V, 97.) On
+     Henry II., see _v. Raumer_, Hohenstaufen, VI, 585. Some of
+     the earlier restrictions on luxury, such as that of 190 in
+     England and France, against scarlet ermine, etc., may have
+     been related to the religious fervor of the crusades. _St.
+     Louis_, during the whole period of his crusades wore no
+     articles of luxury.]
+
+     [Footnote 234-2: The English prohibition against the wearing
+     of silk on hats, caps, stockings etc. (1 and 2 Phil. and
+     Mary, ch. 2.) was promulgated with the intention of
+     promoting the home manufacture of wool. And so _Sully_,
+     Economics, L, XII, XVI, was in favor of laws regulating
+     outlay mainly from "mercantilistic" reasons, that the
+     country might not be impoverished by the purchase of foreign
+     expensive articles. The police ordinance of the Empire of
+     1548, tit. 9, desired to guard against both the "excessive"
+     exportation of money and the obliteration of class
+     differences; that of 1530, tit. 9, and the Austrian police
+     ordinance of Ferdinand I. had only the second object in
+     view. (_Mailath_, Gesch., von Oesterreich, II, 169 ff.) How,
+     in Denmark, prohibitions of luxury grew very soon into
+     prohibitions of imports with a protective intention, see in
+     _Thaarup_, D�nische Statistik, I, 521 seq. On the
+     mercantilistic object of the greater number of prohibitions
+     of coffee, in the 18th century, see _Dohm_, �ber
+     Kaffeegesetzgebung, in the D. Museum, Bd., II, St. 8, No.
+     4.]
+
+     [Footnote 234-3: _Des Essart_, Dictionnaire universel de
+     Police, VI, 146. In Great Britain, the Scotch luxury-law of
+     1621 is the last. (_Anderson_, Origin of Commerce, a. 1621.)
+     In Germany, there were some such laws until the end of the
+     18th century; and the laws regulating mourning have lasted
+     longest. Compare that of Frederick the Great of 1777, the
+     Bamberg and Wurzberg laws of 1784, in _Schl�zer_,
+     Staatsanzeigen, IX, 460; fol. 141 ff. There are many men who
+     have no desire to go to any heavy expense in mourning, but
+     do not dare to give expression thereto in certain cases, and
+     therefore look with favor on a law to which they may appeal
+     as an excuse.]
+
+     [Footnote 234-4: Compare _N. Montaigne_, 1580, Essais, I,
+     63. A striking instance in antiquity: _Macrob._, II, 13;
+     most recently in _Lotz_, Revision, I, 407.]
+
+     [Footnote 234-5: Compare especially the French sumptuary law
+     of 1567. Zaleucos went so far in his severity as to punish
+     with death the drinking of unmixed wine, without the
+     prescription of a physician. (_Athen._, IX, 429.) The effort
+     has sometimes been made to enlist the feeling of honor of
+     the people in the controlling of luxury. Thus old Zaleucos
+     forbade the wearing of gold rings or Milesian cloth unless
+     the wearer desired to commit adultery, or to be guilty of
+     sins against nature (_Diodor._, XII, 21); but such laws are
+     scarcely attended with success.]
+
+
+SECTION CCXXXV.
+
+DIFFICULTY OF ENFORCING SUMPTUARY LAWS.
+
+The impossibility of enforcing sumptuary laws has been most strikingly
+observed, where it has been attempted to suppress the consumption of
+popular delicacies in the first stages of their spread among the people.
+Thus, an effort was made in this direction in the sixteenth century, as
+regards brandy; in the seventeenth, as regards tobacco; in the
+eighteenth, as regards coffee; all which three articles were first
+allowed to be used only as medicines.[235-1] When governments discovered
+after some time the fruitlessness of the efforts, they gave up the
+prohibition of these luxuries and substituted taxes on them
+instead.[235-2] Thus an effort was made to combine a moral and a fiscal
+end. But it should not be lost sight of that the lower these taxes are,
+the greater the revenue they bring in; that is, the less the moral end
+is attained, the more is the fiscal end. Even Cato took this course. His
+office of censor, which united the highest moral superintendence with
+the highest financial guidance, must of itself have led him in this
+direction.[235-3] In modern times the most important excises and
+financial duties of entry have been evolved out of sumptuary laws. Even
+the Turks, after having long tried to prohibit tobacco-smoking in vain,
+afterwards found in the duties they imposed on that plant a rich source
+of income. That such taxes are among the best imposed, where they do not
+lead to frauds on the government, become excessive, or diminish
+consumption to too great an extent, is universally conceded.
+
+Beyond this there is, on the whole, little left of the old police
+regulations relating to luxury. Thus, governmental consent is, in most
+countries, required for the establishment of places where liquors are
+sold at retail, for the maintenance of public places of amusement, for
+shooting festivals, fairs, etc.; and this consent should not be too
+freely granted. The police power prescribes certain hours at which
+drinking places shall be closed. Games of chance are wont to be either
+entirely prohibited or restricted to certain places and times (bathing
+places), or are reserved as the exclusive right of certain institutions,
+especially state institutions. The object of this is, on the one hand,
+to facilitate their supervision, and on the other, to diminish the
+number of seductive occasions. Here, too, belongs the appointment of
+guardians to spendthrifts, which is generally done on the motion of the
+family by the courts; but which, indeed, occurs too seldom to have any
+great influence on the national resources, or on national morals.[235-4]
+
+     [Footnote 235-1: Hessian law that only apothecaries should
+     retail brandy, 1530. English tobacco laws of 1604; _Rymer_,
+     Foedera, XVI, 601. Papal excommunication fulminated in
+     1624, against all who took snuff in church, and repeated in
+     1690. A Turkish law of 1610 provided that all smokers should
+     have the pipe broken against their nose. A Russian law of
+     1634, prohibiting smoking under penalty of death. In
+     Switzerland, even in the 17th century, no one could smoke
+     except in secret. Coffee had a hard struggle even in its
+     native place. (_Ritter_, Erdkunde, XIII, 574 ff.) Prohibited
+     in Turkey in 1633, under pain of death. _v. Hammer_,
+     Osmanische Staatsverwaltung, I, 75. In 1769, coffee was
+     still prohibited in Basel, and was allowed to be sold by
+     apothecaries only, and as medicine. (_Burkhardt_, C. Basel,
+     I, 68.) Hanoverian prohibition of the coffee trade in the
+     rural districts in 1780: _Schl�zer_, Briefwechsel, VIII, 123
+     ff.]
+
+     [Footnote 235-2: According to _v. Seckendorff_,
+     Christenstaat, 1685, 435 seq., a decidedly unchristian
+     change.]
+
+     [Footnote 235-3: _Livy_, XXXIX, 44. In Athens, too, the
+     highest police board in the matter of luxury was the
+     areopagus, which was at the same time a high financial
+     court. Sully transformed the prohibition of luxury in regard
+     to banquets into a tax on delicacies. Similarly, in regard
+     to funeral-luxuries, at an earlier date. (_Cicero_, ad.
+     Att., XII, 35.)]
+
+     [Footnote 235-4: Customary even in the early Roman republic,
+     and adjudged _exemplo furioso_. (_Ulpian_, in L. 1 Digest,
+     XXVII, 10.) The immediate knights of the empire were in this
+     respect very severe towards those of their own order. See
+     _Kerner_, Reichsrittersch. Staatsrecht, II, 381 ff. _Sully_
+     ordered the parliaments to warn spendthrifts, to punish them
+     and place them under guardianship. (Economies royales, L,
+     XXVI.) According to _Montesquieu_, it is a genuine
+     aristocratic maxim to hold the nobility to a punctual
+     payment of their debts. (Esprit des Lois, V, 8.)]
+
+
+SECTION CCXXXVI.
+
+EXPEDIENCY OF SUMPTUARY LAWS.
+
+To judge of the salutariness of sumptuary laws, we must keep the above
+three social periods in view throughout. At the close of the first
+period, every law which restricts the excesses of the immediately
+succeeding age (the middle age) is useful because it promotes the noble
+luxury of the second period.[236-1] And so, in the third period,
+legislation may at least operate to drive the most immoral and most
+odious forms of vice under cover, and thus to diminish their contagious
+seduction. It is a matter of significance that, in Rome, the most
+estimable of the emperors always endeavored to restrict luxury.[236-2]
+But too much should not be expected of such laws. _Intra animum medendum
+est; nos pudor in melius mutet._[236-3] It is at least necessary, that
+the example given in high places should lend its positive aid, as did
+that of Vespasian, for instance, who thus really opposed a certain
+barrier to the disastrous flood of Roman luxury.[236-4]
+
+But a strong and flourishing nation has no need of such leading
+strings.[236-5] Where an excrescence has to be extirpated, the people
+can use the knife themselves. I need call attention only to the
+temperance societies of modern times (Boston, 1803), which spite of all
+their exaggeration[236-6] may have a very beneficial effect on the
+morally weak by the solemn nature of the pledge, and the control their
+members mutually exercise over one another. It is estimated that, of all
+who enter them, in the British Empire, at least 50 per cent. remain true
+to the pledge. In Ireland the government had endeavored for a long time
+to preserve the country from the ravages of alcohol by the imposition of
+the highest taxes and the severest penalties for smuggling. Every
+workman in an illegal distillery was transported for seven years, and
+every town in which such a one was found was subjected to a heavy fine.
+But all in vain. Only numberless acts of violence were now added to
+beastly drunkenness. On the other hand, the temperance societies of the
+country decreased the consumption of brandy between 1838 and 1842, from
+12,296,000 gallons to 5,290,000 gallons. The excise on brandy decreased
+�750,000; but many other taxable articles yielded so much larger a
+revenue, that the aggregate government income there increased about
+�91,000.[236-7] [236-8] The Puritanical laws which some of the United
+States of North America have passed prohibiting all sales of spirituous
+liquors except for ecclesiastical, medical or chemical purposes, have
+been found impossible of enforcement.[236-9] [236-10]
+
+     [Footnote 236-1: Commendable laws relating to luxury in
+     Florence in the beginning of the 15th century. The outlay
+     for dress, for the table, for servants and equipages was
+     limited; but, on the other hand, it was entirely
+     unrestricted for churches, palaces, libraries, and works of
+     art. The consequences of this legislation are felt even in
+     our day. (_Sismondi_, Gesch. der Ital. Freistaaten im M. A.,
+     VIII, 261. Compare _Machiavelli_, Istor. Fior., VII, a.,
+     1472.)]
+
+     [Footnote 236-2: Thus Nerva (_Xiphilin._, exc. Dionis,
+     LXVIII, 2); Hadrian (_Spartian V. Hadrian_, 22); Antoninus
+     Pius (Capitol, 12); Marcus Aurelius (Capitol, 27); Pertinax
+     (Capitol, 9); Severus Alexander (_Lamprid_, 4); Aurelian
+     (_Lamprid_, 49); Tacitus (_Vopisc_, 10 seq).]
+
+     [Footnote 236-3: Extracted from the remarkable speech made
+     by the personally frugal Tiberius (_Sueton._, Tib., 34)
+     against sumptuary laws: _Tacit._, Annal., III, 52 ff.
+     Compare, however, IV, 63.]
+
+     [Footnote 236-4: _Tacit._, Ann., III, 55: but the
+     differences in fortune had, at the same time, become less
+     glaring. Henry IV. also dressed very simply for example's
+     sake, as did also Sully, and ridiculed those _qui portaient
+     leurs moulins et leur bois de haute-futaie sur leurs dos_.
+     (_P�r�fixe_, Histoire du Roi Henry le grand, 208.)]
+
+     [Footnote 236-5: The gross luxuries of drunkenness and
+     gluttony are a direct consequence of universal grossness,
+     and disappear of themselves when higher wants and means of
+     satisfying them are introduced. (_v. Buch_, Reise durch
+     Norwegen und Lappland, 1810, I, 166; II, 112 ff.)]
+
+     [Footnote 236-6: While, formerly, they cared only to abstain
+     from spirits, the so-called "total abstinence" has prevailed
+     since 1832. Most teetotallers compare moderate drinking to
+     moderate lying or moderate stealing; they even declare the
+     moderate drinker worse than the drunkard, because his
+     example is more apt to lead others astray, and he is harder
+     to convert. (But, Psalm, 104, 15!) The coat of arms of the
+     English temperance societies is a hand holding a hammer in
+     the act of breaking a bottle. (Temperance poetry!)]
+
+     [Footnote 236-7: _McCulloch_, On Taxation, 342 ff. Speech of
+     _O'Connell_ in the House of Commons, 27 May 1842. The more
+     serious crimes decreased 1840-44, as compared with the
+     average number during the five previous years by 28, and the
+     most grievous by 50 per cent. (_Rau_, Lehrbuch, II, � 331.)
+     Recently, the first enthusiasm awakened by Father Matthew
+     has somewhat declined, and the consumption of brandy
+     therefore increased. Yet, in the whole United Kingdom in
+     1853, only 30,164,000 gallons were taxed; in 1835,
+     31,400,000; although the population had in the meantime
+     increased from 10 to 11 per cent. In 1834, there were in the
+     United States 7,000 temperance societies with a membership
+     of 1,250,000. The members of these societies are sometimes
+     paid higher wages in factories; and ships which allow no
+     alcohol on board are insured at a premium of five per cent.
+     less. (_Baird_, History of the Temperance Societies in the
+     United States, 1837.)]
+
+     [Footnote 236-8: In the princedom of Osnabr�ck, the number
+     of distilleries was noticeably diminished under the
+     influence of the temperance societies; but the consumption
+     of beer was rapidly increased twenty-fold. (Hannoverisches
+     Magazin, 1843, 51. _B�ttcher_, Gesch. der M. V. in der
+     Norddeutschen Bundestaaten, 1841.)]
+
+     [Footnote 236-9: Even in 1838, Massachusetts had begun to
+     restrict the sale at retail. The agitation for the
+     suppression of the liquor shops begins in 1841. According to
+     the Maine law of 1851, a government officer alone had the
+     right to sell liquor, and only for the purposes mentioned in
+     the text. The manufacture or importation of liquor for
+     private use was left free to all. A severe system of
+     house-searching, imprisonment and inquisitorial proceedings
+     in order to enforce the law. Similarly in Vermont, Rhode
+     Island, Massachusetts and Michigan. (Edinburg Rev., July,
+     1854.) There are, however, numberless instances related in
+     which the law has been violated unpunished since 1856, and
+     still more since 1872. See _R. Russell_, North America, its
+     Agriculture and Climate, and Edinburg Rev., April, 1873,
+     404.]
+
+     [Footnote 236-10: From the foregoing, it is intelligible why
+     most modern writers, even those otherwise opposed to luxury,
+     are not favorably inclined towards sumptuary laws. "It is
+     the highest impertinence and presumption in kings and
+     ministers, to pretend to watch over the economy of private
+     people and to restrain their expense, either by sumptuary
+     laws or by prohibiting the importation of foreign luxuries.
+     They are themselves always, and without any exception (?)
+     the greatest spendthrifts in the society. If their own
+     extravagance does not ruin the state, that of their subjects
+     never will." (_Adam Smith_, I, ch. 3.) Compare _Rau_,
+     Lehrbuch II, � 358 ff. _R. Mohl_, Polizeiwissenschaft, II,
+     434 ff.
+
+     _Montesquieu's_ opinion that in monarchies luxury is
+     necessary to preserve the difference of class but that in
+     republics it is a cause of decline, is very peculiar. In the
+     latter, therefore, luxury should be restricted in every way:
+     agrarian laws should modify the too great difference in
+     property and sumptuary laws restrain the too glaring
+     manifestations of extravagance. (Esprit des Lois, VII, 4.)
+     As an auxiliary to the history of sumptuary laws, compare
+     _Boxmann_, De Legibus Romanorum sumptuarias, 1816. _Sempere
+     y Guarinos,_ Historia del Luxo y de las Leyes sumtuarias de
+     Espana, II, 1788; _Vertot_, Sur l'Establissement des Lois
+     somptuaires parmi les Fran�ais, in the M�moires de
+     l'Academie des Inscr., VI, 737 seq, besides the sections on
+     the subject in _Delamarre_, Trait� de la Police, 1772 ff.;
+     _Penning_, De Luxu et Legibus sumtuariis, 1826.
+     (_Holland._)]
+
+
+
+
+CHAPTER III.
+
+INSURANCE IN GENERAL.
+
+
+SECTION CCXXXVII.
+
+INSURANCE IN GENERAL.
+
+The idea of societies for mutual assistance intended to divide the loss
+caused by destructive accidents which one person would not be able to
+recover from among a great many is very ancient. The insurance of their
+members against causes of impoverishment was one of the principal
+elements[237-1] of the strength of the medieval communities (_Gemeinden
+und K�rperschaften._) If we compare these insurance institutions of the
+middle ages with those of the present, we discover the well-known
+difference between a _corporation_ and an _association_. There the
+members stand to one another in the relation of _persons_ who,
+therefore, seek to guaranty their entire life in the one combination;
+here, they appear only as the representatives of limited portions of
+capital confronted with a definite risk, the average of which may be
+accurately determined. Hence, the former are of small extent, mostly
+local; the latter may extend over whole continents, and even over the
+whole earth. The former have uniformly equal members; the latter embrace
+men of the most different classes. While the former, therefore, simply
+govern themselves, often only on the occasion of their festive
+gatherings, the latter need a precise charter, an artificial tariff and
+a board of officers.
+
+As the absolute monarchical police-state constitutes, generally, the
+bridge between the middle ages and modern times, so too the transition
+from the medieval to the modern system of insurance has been frequently
+introduced by state insurance.[237-2] [237-3] This was very natural at a
+time when the guilds of the middle ages had lost their importance, and
+private industry was not ripe enough to supply the void left by them.
+The government of a country, far in advance intellectually of the
+majority of its subjects, may, by force, induce them to participate in
+the beneficent effects of insurance, and immediately provide
+institutions extensive enough to guaranty real safety. While it may be
+called a rule that mature private industry satisfies wants more rapidly,
+in greater variety, and more cheaply than state industry; in the case of
+insurance against accidents, especially of insurance against fire, there
+are many peculiarities found which would make the entire cessation of
+the immediate action of the state in this sphere, or its limitation
+simply to a legislative and police supervision of insurance, seem a
+misfortune. A dwelling is one of the most universal and urgent of wants,
+and indeed a governing one in all the rest of the arrangements of life.
+If it be destroyed, it is especially difficult to find a substitute for
+it, or to restore it. And to the poorest class of those who need
+insurance, private insurance will, perhaps, be never properly
+accessible.[237-4] If German fire insurance and the German system of
+fire prevention be so superior to the English and North American, etc.,
+one of the principal causes is that German governmental institutions so
+powerfully participate in it.[237-5]
+
+     [Footnote 237-1: The Icelandic _repps_ consisting as a rule
+     of 20 citizens subject to taxation, who mutually insured one
+     another against the death of cattle (to the extent of at
+     least one-fourth the value), and against damage from fire.
+     After every fire three chambers of each house were replaced;
+     so also the loss of clothing and of the means of
+     subsistence, but not other goods or articles of display.
+     (_Dahlmann_, Danisch Gesch., II, 281 ff.) Scandinavian
+     parish-duty, (_Gemeindepflicht),_ of assistance in case of
+     damage by fire: _Wilda_, Gesch. des deutschen Strafrechts,
+     I, 142. Similarly Capitul. a. 779 in _Pertz_, Leges, I, 37.
+     This matter plays an important part in the guilds out of
+     which a large portion of the ancient cities were evolved:
+     compare _Wilda_, Gildenwesen in M. Alter. 123.]
+
+     [Footnote 237-2: Proposed national fire insurance
+     (_Landesbrandversicherung_) in which for the time being
+     several villages should form a company, the surplus of which
+     was to go to the �rarian, and the deficit to be made up by
+     the same: _Georg Obrecht_, F�nf unterschiedliche Secreta,
+     Strasburg, 1617, No. 3. A similar proposition made on
+     financial grounds in 1609, and rejected in Oldenburg.
+     (_Beckmann_, Beitr. zur Gesch. der Erfind, I, 219 ff.) The
+     idea sometimes suggested in our day, of making the system of
+     insurance a government prerogative, arises as much from the
+     passion for centralization as from socialistic tendencies.
+     Compare the Belgian Bulletin de la Commission de Statist.
+     IV, 210, and _Oberl�nder_, Die Feuerversicherungsanstalten
+     vor der St�ndeversammlung des k. Sachsen, 1857.]
+
+     [Footnote 237-3: Maritime insurance is much older than
+     insurance against risks on land; the Dutch institutions of
+     Charles V.'s time seem to have existed long before.
+     (Richesse de Hollande, I, 81 ff.) On Flemish, Portuguese and
+     Italian maritime insurance in the 14th century, see
+     _Sartorius_, Gesch. der Hanse, I, 215; _Sch�fer_, Portug.
+     Gesch. II, 103 ff., and _F. Bald. Pegolotti_, Tratato della
+     Mercatura in Della decima, etc., della Moneta e della
+     Mercatura dei Fiorentini, 1765. The class engaged in
+     maritime commerce are indeed especially and early rich in
+     capital, speculative and calculating.]
+
+     [Footnote 237-4: In Berlin, in 1871, the movable property of
+     30.4 per cent. of all dwellings was insured; but with this
+     great difference, that of the smallest (without any heatable
+     rooms) only 5.3 per cent. were insured; while of dwellings
+     having 5-7 heatable rooms, 84 per cent. had taken this
+     precaution. (_Schwabe_, Volkszahlung von 1871, 169) But it
+     should not be forgotten that private insurance, especially
+     when speculative, is not in favor of having much to do with
+     persons of small means, while public institutions are, for
+     the most part, obliged to reject no proposition for
+     insurance in their own line, except when coming from a few
+     manufacturing quarters especially exposed to fire.]
+
+     [Footnote 237-5: Outside of Germany, public fire insurance
+     is to be still found only in German Austria, in Denmark,
+     Switzerland and Scandinavia. The Germans had, in 1871, an
+     insurance-sum of 5,908,760,000 thalers, while the mutual
+     private insurance companies had about 1,435,000,000 (of
+     which, at most, 200,000,000 to 300,000,000 were on immovable
+     property), and joint-stock insurance companies, after
+     deducting re-insurance (_R�ckversicherung_), about
+     7,000,000,000. (Mittheilungen der �ff. F. V. Anstalten,
+     1874, 84 ff.) Between 1865 and 1870, it was estimated that
+     the per capita insurance of the population was: in Saxony,
+     407 thalers; in W�rtemberg, 410; in Baden, 365; in Prussia,
+     332; in Switzerland, 425. On the other hand, in the much
+     wealthier British Empire, only 325 per capita; in North
+     America, 215. (loc. cit., 92.) Even in the case of
+     joint-stock insurance companies, the average receipts of
+     premiums (1867-70) were, in Germany, 2 per 1,000 of the
+     insurance-sums; in the United Kingdom, 4.06 per 1,000; in
+     the United States, 10.77; and the damage respectively 1.25,
+     2.28, 5.92 per 1,000 of the insurance-sum. (loc. cit., 93.)]
+
+
+SECTION CCXXXVII (_a_).
+
+INSURANCE IN GENERAL.--MUTUAL AND SPECULATIVE INSTITUTIONS.
+
+All insurance institutions fall into two classes:
+
+A. Mutual insurance companies, in which the insured are also as a
+society the insurers, and share the aggregate damage, of a year, for
+instance, among themselves.
+
+B. Speculative institutions, in which a party, generally a joint-stock
+company, in consideration of a certain definite compensation (premium
+agreed upon and paid in advance), assumes the risk.[237a-1]
+
+So far as security is concerned, no absolute preference can be accorded
+to either of these classes. Mutual insurance companies require to extend
+their business very largely[237a-2] to be able to meet great damage. And
+even where the liability of the members is unlimited, care must be taken
+to distinguish between the legally and the actually possible.[237a-3]
+The joint capital of a well organized[237a-4] premium-association
+affords, in this respect sufficient security from the first, but the
+ratio between its security-fund and the amount of its assumed
+liabilities becomes less favorable as the business is extended, in case
+the fund itself is not enlarged.[237a-5] Mutual insurance may accomplish
+something analogous to that accomplished by a joint-stock fund by
+collecting a reserve of yearly dues in advance, thus modifying the
+burdensome vacillation of the amount payable each year.[237a-6]
+Experience, however, teaches, that the strongest form of mutual
+insurance, that supported either by municipalities or by the state, has
+been able to meet extraordinary damage from fire much better than
+premium-institutions, which are too quickly left in the lurch by the
+stockholders when the damage is greater than the amount of the stock
+subscribed. So also loss from fire caused by war or riots is for the
+most part and on principle, excluded by speculative insurance
+institutions.[237a-7]
+
+In point of cheapness to the insured, mutual insurance seems to have the
+advantage, since it contemplates no profit.[237a-8] From a
+national-economical point of view, also, it is very much of a question,
+whether the active competition of premium institutions, in a sphere
+which affords little room for industry proper, is more of a spur to make
+them "puff up" their claims (_Reclamen_) or to the simplification of
+their administration.[237a-9] However, premium-institutions are more
+easily capable of extending the circle of their business;[237a-10] which
+of itself decreases the general expenses and strengthens their insuring
+power. Premium-insurance supposes a greater development of capitalistic
+speculation than does mutual insurance. But, even in the highest stages
+of civilization, the competition of some mutual insurance companies is
+desirable to protect the insured from a too high rate of profit to the
+insurers.[237a-11] [237a-12] And since the principle of mutual insurance
+has so little attraction for capitalists in a time like that in which we
+live that it can be maintained perhaps only by the support of the state
+or of municipalities, we may consider the desirableness of the state's
+continuing to participate in some way in the matter of insurance as
+established.
+
+     [Footnote 237a-1: We might, however, improperly add another
+     class, that of self-insurance, which lies in the proper
+     distribution of a large capital over a great many points.
+     When, for instance, a large state insures its buildings,
+     this seems a superfluous outlay of public money for the
+     benefit of private associations. Or does England insure its
+     ships? On this account, in Prussia, the insurance of
+     post-offices which Frederick William favored, has recently
+     been done away with. (_Stephan_, Gesch. der Preuss. Post,
+     195, 803.)]
+
+     [Footnote 237a-2: According to _Br�ggemann_ (D. Allg. Ztg.,
+     1849, No., 75 ff.), 100 million thalers of an insurance-sum.
+     Actual American legislation prescribes in the case of mutual
+     insurance a minimum number of members of from 200 to 400, a
+     minimum amount of annual premiums of from $25,000 to
+     $200,000, of cash payments on the annual premium of from 10
+     to 40 per cent. of cash-paid yearly premiums, $5,000 to
+     $40,000; and a maximum amount of premium notes made by a
+     member of $500. (Compare Mittheilungen, 26 ff.)]
+
+     [Footnote 237a-3: Hence several mutual companies limit
+     themselves to a maximum liability. Thus, for instance, the
+     Gotha Fire Insurance Company requires from each member a
+     bond that in case of necessity, four times the amount of the
+     presumptive contribution paid in advance shall be paid
+     after; in Altona, six times the yearly premium is the
+     maximum.]
+
+     [Footnote 237a-4: In France, every premium-insurance-company
+     has to be approved by the government (Cod. de Comm., art
+     37), and the approval is not given until 1/5 of the
+     joint-stock capital has been deposited. (_Block_, Dictionn.
+     de l'administration, Fr. 153.) Many recent American laws
+     require that the shares of insurance companies should be
+     registered with the name of the owner.]
+
+     [Footnote 237a-5: The Aix-Munich Fire Insurance Association
+     raised its joint-stock capital after the Hamburg fire from 1
+     to 3 million thalers.]
+
+     [Footnote 237a-6: Usually so that the regular yearly
+     contribution is higher than the average damage and cost of
+     administration; this excess is then returned in the form of
+     a dividend, either immediately at the close of the yearly
+     account, or which is still safer, after several years. In
+     the Stuttgart private insurance company, the reserve must
+     amount to one per cent. of the amount insured, before the
+     premium-surplus is returned. The Gotha fire insurance
+     company, between 1821 and 1842, paid back an average of 46
+     per cent.; and even in 1842, after the Hamburg
+     conflagration, there was an after-payment of only 98 per
+     cent. necessary. This collection in advance of a fund for
+     extraordinary losses is more secure than borrowing in case
+     of need, and paying back in good years. Thus, the Baden
+     Landes-Brandkasse had a debt in 1837 of 800,000 florins.
+     (_Rau_, in the Archiv., III, 320 ff.) In a mutual insurance
+     company, where entrance and exit are free, this would be
+     scarcely possible.]
+
+     [Footnote 237a-7: Nearly three-fourths of the public
+     insurance institutions insure also against fire caused by
+     war (Mitth., 1874, 85), a matter of importance even as war
+     is waged in our own days, since in 1870-71, the damage from
+     fire by the Franco-Prussian war in France was estimated at
+     141,000,000 francs. (Mitth., 1873, 33.)]
+
+     [Footnote 237a-8: In Prussia, the mutual fire insurance
+     companies, in 1865 and 1866 had an administration outlay of
+     0.24 and 0.22 per 1,000 of the amount insured; the premium
+     insurance companies of 0.80 and 0.96; the latter doubtless
+     including large assessments for common purposes. (Preuss.
+     Statist. Ztschr., 1868, 269.) In all Germany, the outlay for
+     administration is, for public institutions, 4 per cent. of
+     the contributions; for premium institutions, inclusive of
+     their dividends, 37.1 per cent.; for the more important
+     French private institutions, even 68.8 per cent. (Mitth.,
+     1874, 89, 92.)]
+
+     [Footnote 237a-9: German public fire insurance institutions
+     generally have a territory of their own, in which that
+     institution is the only one of the kind. On the other hand,
+     the premium institutions in the whole empire keep about
+     80,000 agents, i. e., a number 50 times as large as the
+     number of officers of the former, (loc. cit. 90.)]
+
+     [Footnote 237a-10: Mutual insurance companies, as they have
+     extended, have sometimes split up into several; for
+     instance, the insurance companies against damage by hail at
+     L�beck, G�strow, Schwedt and Griefswald, daughters of that
+     at New Brandenburg.]
+
+     [Footnote 237a-11: The founder of the Mutual Fire Insurance
+     Company of Gotha expressed the hope that in it, it would be
+     possible to insure 60 per cent. cheaper than was customary
+     in the joint stock companies of the time. In the system of
+     agricultural _Einzelh�fe_ in Germany, small mutual insurance
+     companies are possible, and insurance then may be very
+     cheap.]
+
+     [Footnote 237a-12: On the premium associations, _Bernoulli_
+     Ueber die Vorz�ge der gegenseitige Brandasscuranzen vor
+     Pr�miengesellschaften, 1827. _Per contra_, _Masius_, Lehre
+     der Versicherung und Statische Nachweisung aller V.
+     Anstalten in Deutschland, 1846. In Prussia, premium
+     associations are growing more rapidly than mutual: the per
+     capita amount on the whole population insured in the former
+     against damage from fire in 1861 was 116.6 thalers; in 1866,
+     154.2; in 1869, 176.6; in the latter in 1861, 103.5; 1866,
+     124.3; 1869, 154.3 thalers. (_Engel_, Statist. Zeitschr.,
+     1868, 268 ff.; 1871, 284 ff.) In France, in the former, in
+     1857, almost 36 milliards of francs; in the latter, in 1864,
+     13 milliards. (Mitth., 1871, 51.)]
+
+
+SECTION CCXXXVII (_b_).
+
+INSURANCE IN GENERAL.--ECONOMIC ADVANTAGES OF INSURANCE.
+
+The national-economic advantage of insurance consists in this, that the
+damage which is divided among many, and which, therefore, is felt but
+lightly by each one, is probably made up for, not by an inroad upon the
+body of still existing original resources, but by savings made from
+income. This, indeed, is unconditionally true only of such damage as
+does not depend at all on the will of man, such as, for instance, the
+damage caused by hail. On the other hand, there is especially in
+maritime[237b-1] and fire insurance,[237b-2] a great temptation to
+culpable and even criminal destruction; to the latter, when the object
+insured is estimated at too high a value. (Speculation-fires!) And it is
+difficult to say whether this drawback or that advantage is the greater.
+But, on the other hand, every kind of insurance is attended by good
+consequences to the credit of a people. It is of advantage to personal
+credit, since it prevents sudden impoverishment; but it is by far more
+advantageous to real-credit (_Realcredit_ = _material credit_) the
+pledges of which, while their forms may be destroyed, it preserves the
+value of; that is their economic essence. This last is most clearly
+manifest in the case of public insurance institutions, with compulsory
+participation; while in the case of entirely voluntary insurance, the
+creditor can never be certain that his debtor has not neglected
+something necessary. The aggregate danger is less than the sum of
+individual dangers, for the reason that it is more certain, and that
+uncertainty of itself is an element of danger.[237b-3] [237b-4]
+
+     [Footnote 237b-1: Even in Demosthenes' oration against
+     Zenothemis, we may see how easily the analogy of maritime
+     insurance may lead to criminal destruction of property.
+     Similar cases mentioned by _Pegolotti_ before the middle of
+     the 14th century. (Delia Decima dei Fiorentini, III, 132.)]
+
+     [Footnote 237b-2: French experience teaches that during a
+     commercial crisis there are more fires in mercantile
+     magazines than at other times; while in times when sugar is
+     a drug in the market, etc., many sugar factories are burned.
+     (Dictionnaire de l'Econ. polit, I, 88.) The style of our
+     house-building and fire-extinguishing institutions is wont
+     to improve with economic culture. Hence, for instance, in
+     Mecklenburg, 1651 to 1799, cities burned down, in whole or
+     in greatest part, 72 times; 1800 to 1850, only once.
+     (_Boll_, Gesch., von Mecklenb., II, 618 ff.) However, in
+     many countries the damage caused by fire has largely
+     increased: in Baden, for instance, by 100,000 florins a
+     year. Insurance capital, 1809 to 1818, 65 fl.; 1819 to 1828,
+     128 fl.; 1829 to 1836, 152 fl. (_Rau_, Archiv, III, 322.)
+     Similarly in Switzerland. In Bavaria, of every 10,000
+     buildings insured, in 1856-60, there were 4.6 fires per
+     annum; 1861-65, 5.04; 1866-69, 8.67. (Preuss. Statist.
+     Ztschr., 1871, 315.)
+
+     In Saxony, in 1849-53, there was one fire in every 290
+     buildings; 1854-58, in every 201; 1859-63, in every 180. Of
+     these fires, 68 per cent. of the whole number were from
+     known causes, i. e., 36.4 per cent. from incendiarism; 28.5
+     per cent. from negligence. (S�chs, Statist. Ztschr., 1866,
+     106, 115.) Even in antiquity, similar evil consequences
+     attended the generosity which gratuitously compensated
+     damage by fire. Compare _Juvenal_, III, 215 ff.; _Martial_,
+     III, 52. In England, of every 128 cases of damage by fire of
+     "farming stock," 49 were caused by incendiaries, for the
+     most part actuated by revenge. Hence, there, a notice is
+     posted on insured buildings by the insurance companies which
+     runs: "this farm is insured; the fire office will be the
+     only sufferer in the event of a fire." In London, of every
+     seven fires among the small trading class, one is estimated
+     to have been the work of an incendiary, and of all fires at
+     least one-third (Athen�um, 2, Nov., 1867), if not one-half
+     (Mitth., 1879, 100). One of the largest English fire
+     insurance companies estimates that the introduction of the
+     lucifer match has caused it a damage of �10,000 per annum.
+     Of 9,345 fires, 932 were ascribed to gas, 89 to certain, and
+     76 to doubtful, incendiarism, 127 to lucifer matches, 8 to
+     storms, 100 to negligence, 80 to drunkenness, 2,511 to the
+     catching fire of curtains, 1,178 to candles, 1,555 to
+     chimneys, 494 to stoves, 1,323 to unknown causes. (Quart.
+     Rev., Dec, 1854, 14 ff.) Fires originate from criminal
+     (_dolose_) causes most frequently when a new stage in the
+     politico-economical development of a people is reached,
+     which renders the buildings put up in a former and lower
+     stage of development insufficient.]
+
+     [Footnote 237b-3: A Prussian fire insurance regulation, as
+     far back as 1720, expressly says: "everybody scruples to
+     make the least loan on pledged houses in towns." "Every care
+     shall be taken to make the least possible amount of loans in
+     cities." (_Jacobi_, in _Engel's_ Zeitschr., 1862, 122.)
+     _Leib_, Dritte Periode, etc., 1708, cites a proverb to the
+     effect that, in Hamburg, "no house takes fire;" that is, at
+     a time that its fire-fund-system (_Brandkassenwesen_) had as
+     yet found few imitators, _v. Justi's_ proposition to combine
+     the insurance of houses against fire with a loaning-bank for
+     houses. (Polizeiwissenschaft, 1756, I, � 7, 8 ff.) In
+     Russia, in 1815, the loaning bank was the only fire
+     insurance company, which however assumed risks only on stone
+     houses at three-fourths of their value in consideration of
+     15 per 1,000 annual premium. (_Rau_, Lehrbuch, I, 229.)]
+
+     [Footnote 237b-4: _Spittler_, Politik., 441, objects to
+     insurance that it diminishes benevolence and approximates to
+     communism, thus hitting the dark side of all very high
+     civilization.]
+
+
+SECTION CCXXXVII (_c_).
+
+FIRE INSURANCE.
+
+The present system of fire insurance has been introduced in many places by
+the establishment of so-called domanial fire-guilds (_Domanial-Brandgilden_),
+by which the country population on crown-lands bound themselves to mutually
+assist one another by furnishing thatch, and horse and hand power in the
+rebuilding of burned houses. Whatever was wanting after this was made up by
+gratuitous supplies of wood from the public forests, by the granting of
+governmental fire-licenses to beg (_begging letters_), by permission to
+have collections made in the churches[237c-1] etc. The next step was
+generally the establishment of public insurance (_Landes-Assecuranz_) only
+for houses,[237c-2] but with compulsory membership. This compulsion was
+justified by the continuing interest of the state in the payment of the
+house-tax, as well as by the interest of the eventual owner of the estate,
+and of hypothecation-creditors.[237c-3] [237c-4] The insurance of moveable
+property is much more recent, both by reason of the nature of the property
+itself, which becomes of importance only at a later date, and also on
+account of the much greater difficulty of carrying on such
+insurance.[237c-5] The thought of making this species of insurance
+compulsory, or of turning it over to the state, has seldom been suggested.
+
+     [Footnote 237c-1: Thus in Austria, even after the middle of
+     the 18th century: _Schopf_, L. W. des �st. Kaiserstaates, I,
+     p. 175. In the mandate of the electorate of Saxony of Dec.
+     7, 1715; but the fire-fund (_Feuerkasse_) of 1729 depended
+     on voluntary but regular collections, besides which it
+     obtained certain contributions from the state and the
+     church. Those who gave nothing, however, were threatened
+     with getting nothing, or very little, in case of fire.
+     Parties desiring to rebuild massively had especially much to
+     expect. (Cod. August Forst., I, 538.) The charters of the
+     oldest German _Landesbrandkassen_ contain a provision that,
+     in future, no further fire-collections shall be allowed.]
+
+     [Footnote 237c-2: The English Hand-in-Hand Fire Office for
+     houses, founded in 1696; the Union Fire O., for houses and
+     movable property, in 1714: both mutual institutions. The
+     premium-institution, the Sun Fire Office, 1710
+     (_Frankenberg_, Europ. Herold, 1705, II, 181), mentions fire
+     insurance as a special characteristic of England. But we may
+     trace fire insurance on buildings and harvest supplies in
+     the low countries about the Vistula in Prussia, even as far
+     back as 1623. (_Jacobi_, loc. cit., 131.) Brandenburg
+     fire-fund, 1705, with voluntary admittance of all houses,
+     and fixed relation between the yearly contribution and the
+     insurance capital. If a fire happened, the fund repaired the
+     damage caused to the fullest extent its means allowed.
+     (_Mylius_, Corp. Const. March. V., I, 174 seq.) Even in
+     1706, it became necessary to prohibit speaking ill of the
+     institution. It was, therefore, abolished later. The first
+     W�rtemberg private fire insurance company, 1754, founded on
+     similar principles, and which was still existing in 1760,
+     had a like fate (_Bergius_, Polizei und Camerelmagazin, III,
+     40 ff.), but it was exchanged in 1773 for a mutual public
+     company. In Berlin a mutual insurance company in 1718
+     (_Bergius_, Cameralistenbibliothek, 151); in Denmark, 1830
+     (_Thaarup_, D�n. Statist., II, 173 seq.); in Silesia, 1742;
+     Calenberg-Grubenhagen, 1750; in Baden, 1758; in Kurmark,
+     1765; in Hildesheim, 1765; in Hesse-Darmstadt, 1777. In
+     France, the Parisian institution of 1745 is considered the
+     oldest. (_Beckmann_, Beitr. z. Gesch. d. Erfindd., I, 218.)]
+
+     [Footnote 237c-3: In Galenberg-Grubenhagen only the
+     _Bauerh�fe_ subject to the common burthens were obliged to
+     enter, in Hildesheim, all houses subject to taxation; in
+     Darmstadt all house-owners who were allowed only a _dominium
+     utile_. In Kurmark, the subjects of the estate might be
+     compelled to enter by their lords, but could not be kept
+     out. Of Prussian companies in 1846, entrance was compulsory
+     only in those of East Prussia and Posen. In W�rtemberg
+     compulsion since 1773; confirmed in 1853. Also in Zurich,
+     Jan. 24, 1832; in Schaffhausen Nov. 27, 1835. In Berne, only
+     for state, municipal and mortgaged houses; for the latter
+     only so far as it was not expressly left to the creditor.
+     Introduced into Baden in 1807, after most of the parishes
+     (_Gemeinden_) had voluntarily accepted it; confirmed in
+     1840. The provision that at least no judicial hypothecation
+     should be made on an un-insured house is found in the
+     Darmstadt law of 1777, � 13, and in that of Mainz of 1780,
+     art. I, � 15. _Rau_, Lehrbuch, II, � 25 a., finds compulsion
+     in the case of property in common and in that of property
+     belonging to other persons very appropriate. It is a matter
+     worthy of thought, that, in cities like Berlin, Breslau,
+     Thorn and Stettin, compulsory fire insurance is still
+     retained. In Upper Silesia, the abolition of compulsory
+     provisions has had for effect to cause 52 per cent. of all
+     buildings to be insured. (Press Zeitschr, 1867, 329).]
+
+     [Footnote 237c-4: Question of introducing state insurance
+     into Hungary. As a cultured land, and one rich in capital,
+     is better adapted to insurance, it would be folly to
+     "emancipate" ones self from Trieste, etc. in this respect.
+     But, on the other hand, only state-insurance can attract the
+     Hungarians and make them feel universally the want of
+     insurance. A reconciliation of these opposing views might be
+     effected by compelling the peasantry to insure their farm
+     houses, and allowing complete liberty in the cities and with
+     reference to movable property.]
+
+     [Footnote 237c-5: Even _Bergins_, Polizei und Cameralmag.,
+     III, 80, 1768 ff., doubts the possibility of the insurance
+     of movable property. Insurance of movable property of the
+     Evangelical clergy in the electorate of Mark, in which,
+     however, only movable property of the value of 400 thalers
+     is considered. But by this provision the changeableness of
+     the object, which so facilitates fraud, was done away with.
+     Hamburg joint-stock company for the insurance of movable
+     property, 1779. Electorate of Saxony fire-fund for movable
+     property, 1784-1818, which, however, made good, as a rule,
+     only 25 per cent. of the damage caused. In Prussia, in 1814,
+     there were only 12 insurance companies in which movable
+     property could be insured. In the aggregate even they were
+     but of little extent, and had generally a partnership,
+     guild, or communal basis. (_Jacobi_, loc. cit, 123.) On the
+     other hand, in 1869, there were in all the mutual insurance
+     companies, 530,600,000 thalers worth of movable property
+     insured, besides 2,814,800,000 thalers worth of immovable
+     property, and 366,100,000 thalers worth of property of a
+     mixed nature, partly movable and partly immovable. (Preuss.
+     Statist. Zeitschr., 1876, 298.)]
+
+
+SECTION CCXXXVII (_d_).
+
+REQUISITES OF A GOOD SYSTEM OF FIRE INSURANCE.
+
+Among the chief requisites of a good fire insurance system are the
+following:
+
+A. The adoption in insuring of measures for the prevention of criminal
+abuse on the part of the insured. No one should be benefited by the
+burning of his insured goods.[237d-1] Hence, the rates of insurance
+should be rigidly fixed according to the real value in exchange.[237d-2]
+In the case of houses, the value of the incombustible elements of value
+should be deducted; also the value of the ground and the value it
+possesses from being advantageously situated, etc. The simultaneous
+insurance of the same object in several companies without proper notice
+being given should be unconditionally prohibited.[237d-3] The control of
+all this may be greatly facilitated by requiring foreign insurance
+companies to obtain a special permit to carry on their business in the
+country, and to allow them to effect insurance only through responsible
+home agents.[237d-4] Most insurance companies exclude from insurance
+personal property which may be easily secreted, such, for instance, as
+jewels, cash money, valuable documents, etc.
+
+B. There should be a just proportion between the insurance premium and
+the risk. This depends not only on the style of building of the houses
+themselves and of those in the neighborhood,[237d-5] on the situation,
+the too great intricacy (_Complicirung_) of which extends the ravages of
+fire, as its too great isolation makes assistance difficult;[237d-6] but
+also on the nature of the business carried on in them,[237d-7] and on
+the condition of the local development of fire police. Highly cultured
+places, especially large cities, are really much less exposed to damage
+from fire. To not take this into account would be not only to
+compulsorily dole out charity to the poorer classes of the people, and
+to the less cultivated portions of the country,[237d-8] but it would
+indirectly put an obstacle in the way of a transition to the massive
+construction of houses, and of good, that is, as a rule, of costly
+fire-extinguishing institutions.[237d-9] On the other hand,
+administration must be rendered much more difficult by the taking of
+risks of many degrees of danger, especially as it is scarcely possible,
+for a long time, to even hope for a statistically unassailable basis of
+a tariff graded in exact accordance with the risk.[237d-10] If those
+objects especially exposed to danger should be excluded altogether, the
+common utility of the institution would be largely diminished; and the
+insured least exposed to danger would nevertheless have to complain of a
+relatively too high contribution.[237d-11] If every peculiar class of
+risks were to be treated as one whole, the insuring principle itself
+would suffer.[237d-12] Where the nation or municipality engages in the
+business of compulsory insurance, its too rigid system of rate-fixing
+has something inequitable in it, inasmuch as it makes the most provident
+housekeeper suffer from the danger from fire of his neighbor's
+establishment, a gas factory, for instance.
+
+C. The certainty of compensation for damage suffered. The government
+should see to it that the institution does not promise more than it can
+perform with its joint-stock capital and by means of its
+premiums.[237d-13] The good will of foreign institutions to keep their
+promises to the letter is best assured by requiring them as a condition
+precedent of carrying on their business in a country, to bind themselves
+to litigate only in the home courts. They protect themselves against the
+risk of very large insurances by the system of re-insurance, by
+transferring a portion of the premium as well as of the risk to one or
+more other insurance companies.[237d-14]
+
+D. In all highly cultured quarters, the almost entirely voluntary
+fire-extinguishing system, in which the people turned out in a body to
+battle with the flames, made way for the fire-militia system; and if the
+latter should make place for what we may designate as a standing
+fire-army which is most easily attained in connection with the
+fire-insurance system, we should reach the ideal of such a system,
+especially if the business of insurance was in the hands of the state or
+of the municipality. Such a system would be in accordance with the
+principle of the division of labor, and, also, with the fact that
+usually the most vital interest is the greatest spur to action.[237d-15]
+
+     [Footnote 237d-1: The former almost unrestricted liberty of
+     the American system of insurance has recently been
+     curtailed, in most of the states, by a rigid governmental
+     superintendence, by special insurance boards with power to
+     permit companies to engage in the business of insurance, and
+     endowed with the right of imposing proper penalties, but of
+     declaring the privilege forfeited at the end of any year.
+     Compare _Br�mer_ in III, Erg�nzungshefte der Preuss.
+     Statist. Ztschr. und Mitth., 1871, No. 1.]
+
+     [Footnote 237d-2: The first fire insurance provisions or
+     regulations paid little attention to the danger of
+     over-valuation. Similarly _v. Justi_, Abh. von der Macht,
+     Gl�ckseligkeit, etc., eines Staats. 1860, 81. Also
+     _Kr�nitz_, Oekonom. Encyclop�die, 1788, XIII, considers it
+     improbable that any one would have his home insured at a
+     higher than its real value. On the other hand, there were
+     formerly bitter complaints made in the United States that
+     the agents, on whom the determination of the rate of premium
+     and the control of the insurance-sum depended chiefly, were
+     led to make over-valuations in furtherance of their own
+     interests. (Mitth., 1871, 3; 1874, 95.)]
+
+     [Footnote 237d-3: If the valuation were made to depend on
+     the purchase price or on the cost of replacing or restoring
+     the damaged property, even this would be some temptation to
+     not entirely upright men. Hence the Baden law of 1840
+     expressly provides that instead of this, the selling price
+     shall be the basis; the law of 1852, � 17, the medium cost
+     of the combustible parts, after deduction made of the
+     diminution in value caused by age. The fixing of premiums in
+     the case of houses should be repeated from time to time on
+     account of wear. According to the Calenb. Grubenh. law of
+     1823, � 21, every 10 years. According to the Baden law of
+     1852, � 28, 33, and the W�rttemberg law of 1853, � 12, the
+     city council should examine annually in what cases a new
+     valuation was necessary. The more certainly over-insurance
+     is avoided, the less need is there of the superintendence
+     policy adapted to a rather barbarous state of insurance,
+     that only a part of the value shall be made good. The
+     Phoenix fire insurance company in Baden for the insurance
+     of movable property has reserved the right to investigate at
+     any time and to satisfy itself as to the value of the
+     insured object, and to lower the amount insured in
+     accordance with its own opinion. The provision that the
+     valuation shall be made by the authorities of the place, or
+     that it shall be approved by them is frequently found. In
+     Saxony, for instance (law of Nov. 14, 1835), the Leipzig
+     city council gives its approval when it finds the amount
+     insured in keeping with the means of the insured, and
+     entertains no suspicions as to his honesty. To what a bad
+     state of things a less liberal course leads, see in
+     _Masius_, loc. cit., 85. This indeed is only difficult in
+     large cities. It is also to be considered that it is not so
+     much the many small amounts, but the few large ones that are
+     dangerous to insurance. The Prussian scheme wanted to give
+     up the police superintendence of insurance, but to punish
+     over-insurance of more than 5 per cent. of the common value,
+     by imposing a fine equal to the amount of over-insurance on
+     the insured, the agents, and on the conductors of the
+     business. (_Jacobi_, in II. Erg�nzhefte der Preuss. Statist.
+     Ztschr., 1869.) The provision that the amount paid as
+     damages for a burned house shall be immediately employed in
+     rebuilding, is to be explained in part by requisite A; in
+     part also by the same police-guardianship against presumed
+     negligence which introduced compulsory insurance.]
+
+     [Footnote 237d-4: Compare _Br�gemann_, Die Mobiliar V. in
+     Preussen nach dem G. von 1837.]
+
+     [Footnote 237d-5: _Oberl�nder_, loc. cit. 108, calls
+     insurance without classification of risks, a "mutual
+     benevolent institution;" and one rigidly classified
+     according to the probable period of burning, "an institution
+     for the making of advances" (_Vorschuss-Anstalt._) In Baden,
+     even in 1737, there was no difference made between a massive
+     building and a wooden hut with a straw roof in the Black
+     forest. (_Rau_, Archiv., III, 324.) Here, there was in 1844
+     to 1849, an average damage by fire in houses with brick
+     roofs of 1,302 florins, with thatch roofs of 1,786 florins,
+     with shingle roofs of 2,292 florins, to say nothing of the
+     greater frequency of such damage in each succeeding class.
+     (_Rau_, Lehrbuch, II, 1, � 26, a.) In W�rttemberg, before
+     1843, the owners of insured personal property, in houses
+     with thatch roofs, had, in the same time, received 22 per
+     1,000 compensation for damage; in houses with brick roofs,
+     from 8 to 9 per 1,000. (_Rau_, loc. cit.) In 17 German
+     insurance companies, between 1866 and 1869, massive
+     buildings with hard roofs paid 1,003,000 thalers and
+     received 612,000 thalers; the not massive with hard roofs
+     paid 1,544,000 thalers and received 1,339,000; houses with
+     soft roofs paid 2,420,000 and received 2,792,000. (Preuss,
+     Statist. Zeitschr. 1861, 327.) Similar observations made in
+     Berne during 23 years.]
+
+     [Footnote 237d-6: While in most English insurance companies,
+     there are only three classes: common, hazardous, and doubly
+     hazardous, in Rhenish Prussian insurance companies, there
+     are seven, according to the style of building, and in each
+     class two subdivisions, according to the location.]
+
+     [Footnote 237d-7: According to an English average of 15
+     years, there is some damage from fire yearly in the
+     following classes of buildings and on the following
+     percentages:
+
+                            _Of the whole number_.
+          Match factories,         30.00
+          Lodging houses,          16.5
+          Hat makers,               7.7
+          Cloth makers,             2.6
+          Candle makers,            3.8
+          Smiths,                   2.4
+          Carpenters,               2.2
+          Oil and color dealers,    1.5
+          Book dealers,             1.1
+          Coffee houses,            1.2
+          Beer houses,              1.3
+          Bakeries,                 0.75
+          Wine dealers,             0.61
+          Small dealers in spices,  0.34
+          Eating houses,            0.86
+
+     (Quart. Rev., 1854, 23.) There is indeed a difference in the
+     intensity of these fires. For instance, in inns, there have
+     been a great many; but the damage has been for the most part
+     insignificant.]
+
+     [Footnote 237d-8: In Paris the houses insured had a value of
+     2,370,000,000 francs, but the damage from fire amounted to
+     only 0.016 per 1,000! (Dictionn. d'Econ. politique, I, 89.)
+     On an average, the premiums in France amount to 0.85 per
+     1,000. In Prussia, 1867-69 on an average: in the province of
+     Prussia, 9.46 per 1,000; Posen, 3.75; Brandenburg, Berlin
+     not included, 2.82; Pomerania, 2.52; Westphalia, 2.15;
+     Schleswig-Holstein, 2.09; Hanover, 1.99; Silesia, 1.68;
+     Saxony, 1.47; Hesse-Nassau, 1.46; the Rhine country, 1.34;
+     Sigmaringen, 0.56; city of Berlin, 0.28 per 1,000. (Preuss.
+     Statist. Zeitschr., 1871, 289.) How largely a higher
+     civilization tends to arrest the spread of fire by the
+     reason of the great facilities of rendering assistance is
+     shown by the fact that for 100 buildings totally consumed in
+     Posen, in 1837-40, there were 13.4 only injured: in 1866-69,
+     32 were injured for 100 totally consumed. In Prussian
+     Saxony, 1839-44, 34; 1867-69, 57. (loc. cit., 329.) In
+     Baden, the district called the _Seekreis_ got from the
+     fire-fund, in 1845-49, 80 per cent. more than it contributed
+     to it; the middle Rhine district contributed 37 per cent.
+     more than it received. The Bavarian Reza district, 1828-29,
+     received only 11.4 per cent. for damages, and paid 19 per
+     cent. of all premiums; the Lower Danube district, 10 and 8.8
+     per cent. (_Rau_, Lehrbuch, II, � 28, 26.) The city of
+     Leipzig contributed from 1/19 to 1/17 of the insurance paid,
+     1864-68, to the insurance companies taking risks on real
+     property in the kingdom of Saxony, and received back only
+     from 1/662 to 1/114, although its fire extinguishing
+     institutions cost, in 1870, 26,182 thalers. (Official.)]
+
+     [Footnote 237d-9: Even premium-institutions have frequently
+     very different rates for the same risk, according as they
+     fear greater or less competition, or desire to recommend
+     themselves in a new place, etc. Hence the tricks of the
+     trade with which most of them surround their tariff.]
+
+     [Footnote 237d-10: In W�rtemberg, theaters, powder mills,
+     places where brick and lime are burned, porcelain factories,
+     iron-works, etc. cannot be insured at all. In
+     Calenb-Grubenh. and Bremen-Verden, shingle-roofed houses can
+     be insured only at 2/3 of their real value.]
+
+     [Footnote 237d-11: Thus, for instance, in the electorate of
+     Mark, each of the four classes of houses bears its own loss
+     alone. To the fourth class, for instance, belong smithies,
+     brick factories, and buildings with steam engines, etc. The
+     Baden law of 1852 puts the same burthen in the same place,
+     upon houses exposed to danger in a greater or lesser degree;
+     but provides for 4 classes (_Gemeindeclassen_) with
+     different rates of contribution, and assigns each _Gemeinde_
+     every year, according to the relative magnitude of the
+     losses of the previous year, to one of those classes. How
+     risky it is for large cities to confine their insurance,
+     because of the ordinarily small amount of damage to them
+     from fire, only to insurance institutions of their own, is
+     shown by the case of Hamburg in the year 1842, where three
+     joint stock insurance companies could pay only from 75 to 80
+     per cent., and the Bieber Mutual Insurance Company, only 20
+     per cent.]
+
+     [Footnote 237d-12: In the case of buildings, the greater
+     risk is generally calculated by correspondingly multiplying
+     the insurance-value, but in case of damage by fire, it is
+     simply made good.]
+
+     [Footnote 237d-13: In the insurance companies specified by
+     _Masius_, loc. cit., 176, the aggregate amount of their
+     insurance, stood to the amount necessary to cover it, by
+     means of receipts from premiums, reserve, and joint-stock
+     capital:
+
+     In the Leipzig Fire Insurance Company, as             100:1.87
+     In the Trieste Fire Insurance Company, as             100:1.80
+     In the Elberfeld Fire Insurance Company, as           100:1.19
+     In the Aix-Munich Fire Insurance Company, as          100:1.15
+     In the Cologne Colonia Fire Insurance Company, as     100:2.44
+     In the Karlsruhe Phoenix Fire Insurance Company, as   100:3.7
+     In the Berlin Fire insurance Company, as              100:6.3
+     In the Gotha, about as                                100:2.6
+      (including the four fold after payment note)
+
+     In the same companies the amount of damage and of expense
+     for the last preceding year were, on every 100 thalers, of
+     insurance, 46 pfennigs (1/300 thalers), 44, 29, 48, 67, 55,
+     35, 42; an average of 45, that is 1-1/2 per 1,000. Besides,
+     much depends on the degree to which the joint-stock capital
+     can be applied. Thus, for instance, in Berlin, on every
+     1,000 thalers 200 are paid in cash, and a note
+     (_Solawechsel_) given for the rest, payable in two months
+     after notice. Where the unpaid remaining stock is but a mere
+     book-debt, and may even be evaded by disclaiming the stock
+     itself, it of course affords very little security.]
+
+     [Footnote 237d-14: Compare _Volz._ T�binger Zeitschr. 1847,
+     349 ff.]
+
+     [Footnote 237d-15: The preparatory steps towards this ideal
+     were taken long ago. Thus, for instance, the
+     personal-property insurance companies have offered premiums
+     for special merit in extinguishing fires (Calenb.-Grubenh.,
+     1814, � 35), saving things from a burning house is looked
+     after by the agents of personal property insurance
+     companies; compensation is almost universally made not only
+     for the damage done by fire, but also that caused while the
+     fire is being extinguished. The excellent fire-extinguishing
+     institutions of England are maintained by the common action
+     of the insurance companies. There have been complaints,
+     however, that they have shown a preference for insured
+     objects. (Mitth., 1874, 113.)]
+
+
+
+
+BOOK V.
+
+ON POPULATION.
+
+
+
+
+CHAPTER I.
+
+THEORY OF POPULATION.
+
+
+SECTION CCXXXVIII.
+
+INCREASE OF POPULATION IN GENERAL.
+
+That amid the thousand dangers which threaten the existence of the
+individual the species may endure, the Creator has endowed every class
+of organic beings with such reproductive power, and so much pleasure in
+propagating their kind, that if the action of these were entirely
+unrestricted, it would soon fill up the earth.[238-1] In the case of the
+human race, also, the physiological possibility of propagation has very
+wide limits.[238-2] It would be nothing extraordinary that a healthy
+pair, living in wedlock from the 20th to the 42nd year of the woman's
+life, that is, during the whole time of her full capacity to bear
+children, should rear six children to the age of puberty. This would,
+therefore, suffice to treble the population in a single generation;
+provided that all who had grown up should marry. According to
+Euler,[238-3] when the births were 5 per cent. and the deaths 2 per
+cent., the population doubled in not quite 24 years; when the increase
+was 2-1/2 per annum, in 28 years; when 2, in 35 years, and when 1-1/2
+per cent. in 47 years.
+
+The United States furnish us with a striking illustration of this
+doctrine, and on the grandest scale. There the natural increase of the
+white population, from 1790 to 1840, was 400.4 per cent.; that is in the
+first decade 33.9 per cent. of the population in 1790; in the second
+33.1, in the third 32.1, in the fourth 30.9, in the fifth 29.6 per
+cent.[238-4] [238-5]
+
+     [Footnote 238-1: Thus, for instance, the sturgeon can,
+     according to _Leuckart_, produce 3,000,000 eggs in a year.
+     According to _Burdach_, the posterity of a pair of rabbits
+     may be over 1,000,000 in four years; and that of a
+     plant-louse, according to _Bonnet_, over a 1,000,000,000 in
+     a few weeks. The prolificacy of a species of animals is wont
+     to be greater in proportion as the structure-material
+     (_Bildungsmaterial_) saved within a given time during the
+     course of individual life, is greater, and as material wants
+     during the embryonic period are limited; also
+     (teleologically), in proportion as to the danger the
+     individual is exposed to. Compare _Leuckart_ in _R.
+     Wagner's_ physiolog. W�rterbuch, Art. Zeugung.
+     Teleologically, _Bastiat_ says: _cette surabondance parait
+     calcul�e partout en raison inverse de la sensibilit�, de
+     l'intelligence et de la force avec laquelle chaque esp�ce
+     r�siste � la d�struction_. (Harmonies, ch. 16.)]
+
+     [Footnote 238-2: The researches of modern physiology make it
+     probable that an ovum is detached from the ovaries at each
+     period of healthy menstruation. (_Bischoff_, Beweis der von
+     der Begattung unabh�ngigen periodischen Reifung und L�sung
+     der Eier bei den S�ugethieren und Menschen, 1844.) It is
+     hardly possible to ascertain how many of these ova are
+     capable of fecundation. Among the animals, on which the
+     greater number of accurate observations have been made, that
+     is in the case of horses, it has been found that, in the two
+     districts of Prussia most favorably conditioned, of 100
+     mares that had been lined, 63.3 became pregnant, and 53.5
+     gave birth to live foals; in the rest of the Prussian
+     monarchy, the births were only 46 per cent. Compare
+     _Schubert_, Staatskunde, VII, 1, 98. In the Belgian _haras_
+     (places for breeding horses), between 1841 and 1850, about
+     30 per cent. of the "leaps" proved fruitful, from 2 to 3 per
+     cent. aborted, the rest were either probably or certainly
+     unfruitful. (_Horn._, Statist. Gem�lde, 171.) In the human
+     species, also, the great number of first-born generated in
+     the first weeks of marriage, bears witness to a high degree
+     of procreative susceptibility.
+
+     On the other hand, the healthy male semen ejected during a
+     single act of coition contains innumerable germs, a very few
+     of which are sufficient to produce fecundation. (_Leuckart_,
+     loc. cit, 907.) According to _Oesterlen_, Handbuch der
+     medicischen Statistik, 1865, 196, from 10 to 20 per cent. of
+     all marriages were childless. In the United Kingdom, _Farr_,
+     report on the Census of 1851, estimated that in a population
+     of 27,511,000, there were 1,000,000 childless families, when
+     the term is allowed to embrace widows and widowers as well
+     as married couples.]
+
+     [Footnote 238-3: See the exhaustive table in _Euler_,
+     M�moires de l'Acad�mie de Berlin 1756, in _S�ssmilch_,
+     G�ttl. Ordnung, I, � 160. Bridge has constructed the
+     following formula:
+
+     Log. A = Log. P + n x Log.(1+(m-b)/mb).  Here P stands for
+     the actually existing population, 1/m = the ratio between
+     the annual mortality and the number of the living, 1/b, the
+     ratio of the number of annual births to the number of the
+     living, n the number of years, A, the population at the end
+     of three years, the quantity sought for.]
+
+     [Footnote 238-4: _Tucker_, Progress of the United States,
+     89, ff. 98. Here deduction is already made of immigrants and
+     their posterity, who after subtracting the loss by
+     emigration back to the old country, amounted to over
+     1,000,000. It probably amounted to more yet. If, as
+     _Wapp�us_ does (Bev�lekerungsstatistik, 1859, I, 93, 122
+     ff.), we calculate the rate of increase per annum, we have
+     an average during the first decade of 2.89, during the
+     second of 2.83, the third of 2.74, the fourth of 2.52, the
+     seventh of 2.39, the eighth (1860-70) of probably 2.25 per
+     cent. On the still greater ratio of increase in earlier
+     times, see _Price_, Observations on reversionary Payments,
+     1769, 4 ed. 1783, I, 282 seq., I, 260.
+
+     It was nothing unheard of to see an old man with a living
+     posterity of 100. (_Franklin_, Observations concerning the
+     Increase of Mankind, and the Peopling of New Countries,
+     1751.) It is said that in the region about Contendas, in
+     Brazil, there were on from 70 to 80 births a mortality of
+     from 3 to 4 per annum (how long?), and an unfortunate birth
+     (_ungl�cklichen_) was scarcely ever heard of. Mothers 20
+     years of age had from 8 to 10 children; and one woman in the
+     fifties had a posterity of 204 living persons. (_Spix und
+     Martius_, Reise III, 525).]
+
+     [Footnote 238-5: Immense increase of the Israelites in
+     Egypt. (Genesis 46, 27; Numbers, 1.)]
+
+
+SECTION CCXXXIX.
+
+LIMITS TO THE INCREASE OF POPULATION.
+
+There is certainly one limit which the increase of no organic being can
+exceed: the limit of the necessary means of subsistence. But, so far as
+the human race is concerned, this notion is somewhat more extensive,
+inasmuch as it embraces besides food, also clothing, shelter, fuel, and
+a great many other goods which are not, indeed, necessary to life, but
+which are so considered.[239-1] We may illustrate the matter by a simple
+example in the rule of division. If we take the aggregate of the means
+of subsistence as a dividend, the number of mankind as divisor; then the
+average share of each is the quotient. Where two of these quantities are
+given, the third may be found. Only when the dividend has largely
+increased can the divisor and quotient increase at the same time
+(prosperous increase of population). If, however, the quotient remains
+unchanged, the increase of the divisor can take place only at the
+expense of the quotient (proletarian increase of population).[239-2]
+Hence it is to be expected that the quantity of the means of subsistence
+being given and also the requirement of each individual, the number of
+births and the number of deaths should condition each other. Where, for
+instance, the number of church livings has not been increased, only as
+many candidates can marry as clergymen who held such livings have died.
+The greater the average age of the latter is, the later do the former
+marry, in the average, and _vice versa_. And so, in the case of whole
+nations, when their economic consumption and production remain
+unaltered.[239-3] A basin entirely filled with water can be made to
+contain more only in case it is either increased itself, or a means is
+found to compress its contents. Otherwise as much must flow out on the
+one side as is poured in on the other.
+
+And so, everything else remaining stationary, the fruitfulness of
+marriages must, at least in the long run, be in the inverse ratio of
+their frequency. (See � 247.)[239-4] [239-5]
+
+     [Footnote 239-1: When it is known that, in the Hebrides,
+     one-third of all the labor of the people has to be employed
+     in procuring combustible material (_McCulloch_, Statist.
+     Account, I, 319), it will no longer excite surprise that,
+     according to Scotch statistics, some parishes increase in
+     population after coal has been found in them, and others
+     decrease when their turf-beds are exhausted.]
+
+     [Footnote 239-2: Compare _Isaias_, 9:3. According to
+     _Courcelle-Seneuil_, Trait� th�orique et pratique d'Economie
+     politique, I, 1858, the _chiffre n�cessaire de la population
+     �gal � la somme des revenus de la soci�t� diminu�e de la
+     somme des in�galit�s de consommation et divis�e par le
+     minimum de consommation_: P=(R-J)/M.]
+
+     [Footnote 239-3: Thus _S�ssmilch_, G�ttliche Ordnung in den
+     Ver�nderungen des menschlichen Geschlechts, 1st ed., 1742,
+     4th ed., 1775, I, 126 ff., assumes that one marriage a year
+     takes place, on from every 107 to every 113 persons living.
+     On the other hand, 22 Dutch towns gave an average of 1 in
+     every 64. This abnormal proportion is very correctly
+     ascribed by _Malthus_, Principles of Population, II, ch. 4,
+     to the great mortality of those towns: viz., a death for
+     every 22 or 23 persons living, while the average is 1:36.
+     The Swiss, _M�ret_, (in the M�moires de la Soci�t�
+     �conomique de Berne, 1766, I, 15 ff.), could not help
+     wondering that the villages with the largest average
+     duration of life should be those in which there were fewest
+     births. "So much life-power and yet so few procreative
+     resources!" Here too, _Malthus_, II, ch. 5, solved the
+     enigma. The question was concerned with Alpine villages with
+     an almost stationary cow-herd business: no one married until
+     one cow-herd cottage had become free; and precisely because
+     the tenants lived so long, the new comers obtained their
+     places so late. Compare _d'Ivernois_, Enqu�te sur les Causes
+     patentes et occultes de la faible Proportion de Naissances �
+     Montreux: yearly 1:46, of the persons living, while the
+     average in all Switzerland was 1:28.
+
+     In France according to _Qu�telet_, Sur l'Homme, 1835, I, 83
+     ff., there was:
+
+     ===============+===================+============+================
+                    |  _One marriage_   | _Children_ | _One death_
+          _In_      |     _a year_      |    _to a_  |   _yearly _
+                    |   _for every_     | _marriage_ | _for every_
+     ---------------+-------------------+------------+----------------
+      4 Departments |110-120 inhabitants|    3.79    |35.4 inhabitants
+     15      "      |120-130      "     |    3.79    |39.2      "
+     23      "      |130-140      "     |    4.17    |39.0      "
+     18      "      |140-150      "     |    4.36    |40.6      "
+     10      "      |150-160      "     |    4.43    |40.3      "
+      9      "      |160-170      "     |    4.48    |42.7      "
+      6      "      |170 and more "     |    4.48    |46.4      "
+     =================================================================
+
+     The two departments of Orne and Finisterre present a very
+     glaring contrast: in the former, one birth per annum on
+     every 44.8 (1851 = 51.6), a marriage on every 147.5, a death
+     on every 52.4 (1851 = 54.1) living persons; in the latter,
+     on the contrary, on every 26 (1851 = 29.8), 113.9 and 30.4
+     (1851 = 34.2). In Namur, the proportions were 30.1, 141,
+     51.8; in Zeeland, 21.9, 113.2, 28.5. (_Qu�telet_, I, 142.)
+     The Mexican province, Guanaxuato, presents the most
+     frightful extreme: one birth per annum on every 16.08 of the
+     population living, and one death in every 19.7. (_Qu�telet_,
+     I, 110.)]
+
+     [Footnote 239-4: Compare even _Steuart_, Principles, I, ch.
+     13. _Sadler_, Law of Population, 1830, II, 514:
+
+     =======================================+=============+===========
+                                            |_Marriages_  |_Children_
+                                            | _per annum_ |_on every_
+                                            | _on every_  |  _100_
+                                            | _10,000_    |_Marriages_
+                                            |_inhabitants_|
+     ---------------------------------------+-------------+-----------
+
+        In the purely Flemish provinces     |             |
+          of Belgium                        |     128     |  481
+        In the purely Wallonic provinces    |             |
+          of Belgium                        |     139     |  448
+        In the mixed provinces of Belgium   |     152     |  425
+        In Holland                          |     148     |  476
+        In Lombardy                         |     166     |  489
+        In Bohemia                          |     173     |  413
+        In the kingdom of Saxony            |     170     |  410
+     =======================================+=============+===========]
+
+     [Footnote 239-5: Compare _Horn_, Bev�lkerungswissenschaftliche
+     Studien, I, 162 ff., 191, 252 ff. In most countries, there
+     is a much larger number of children to a marriage in the
+     rural districts than in the cities; but at the same time,
+     marriages are much less frequent there. In Saxony, however,
+     where the cities show a greater marital productiveness, the
+     rural districts present a large number of marriages. Of the
+     10 countries compared by _Wapp�us_, II, 481 ff., only
+     Prussia and Schleswig are exceptions to the rule.]
+
+
+SECTION CCXL.
+
+INFLUENCE OF AN INCREASE OF THE MEANS OF SUBSISTENCE.
+
+The sexual instinct and the love for children are incentives of such
+universality and power, that an increase of the means of subsistence is
+uniformly followed by an increase in the numbers of mankind. _Partout,
+o� deux personnes peuvent vivre commod�ment, il se fait un mariage._
+(_Montesquieu._) Thus after a good harvest, the number of marriages and
+births is wont to considerably increase; and conversely to diminish
+after bad harvests.[240-1] [240-2] [240-3] In the former case, it is
+rather hope than actual possession which constitutes the incentive to
+the founding of new families. Hence the greatest increase is not found
+in connection with the absolutely lowest price of corn, but with those
+prices which present the most striking contrast to those of a previous
+bad year.[240-4]
+
+The introduction of the potato has promoted the rapid increase of
+population in most countries. Thus, the population of Ireland in 1695,
+was only 1,034,000; in 1654, when the cultivation of the potato became
+somewhat more common it was 2,372,000; in 1805, 5,395,000; in 1823,
+6,801,827; in 1841, 8,175,000. In 1851, after the fearful spread of the
+potato-rot it fell again to 6,515,000.[240-5] In general, every new or
+increasing branch of industry, as soon as it yields a real net product
+is wont to invite an increase of population. Machines, however, have not
+this effect only when they operate to produce rather a more unequal
+division of the national income than an absolute increase of that
+income.[240-6]
+
+     [Footnote 240-1: That rich food directly increased
+     prolificacy is proved from the fact that, for instance, our
+     domestic animals are much more prolific than wild ones of
+     the same species. Compare _Villerm�_, in the Journ. des
+     Economistes VI, 400 ff. The months richest in conceptions
+     fall universally in the spring, and again in the pleasant
+     season immediately following the harvest. On the other hand,
+     during the seasons of fast in the Catholic church the number
+     of cases of conception is below the average. (Jour. des
+     Econ., 1857, 808).]
+
+     [Footnote 240-2: Thus the annual mean number of marriages
+     amounted to:
+
+     =============================================
+                   | _Between 1841_ |  _In 1847_
+                   |  _and 1850._   |   _alone._
+     --------------+----------------+-------------
+     In Saxony,    |     15,505     |    14,220
+     In Holland,   |     22,352     |    19,280
+     In Belgium,   |     28,968     |    24,145
+     In France,    |    280,330     |   249,797
+     =============================================
+
+     _Horn_, loc. cit. I, 167. In the governmental district
+     (_Regierungsbezirke_) of D�sseldorf, there was in the years
+     of scarcity, 1817 and 1818, one marriage for every 134 and
+     137 souls; on the other hand, in 1834 and 1835, in every 103
+     and 105. (_Viebahn_, I, 120 seq.) In England, the variations
+     in the yearly price of corn are reflected in the variations
+     in the number of yearly marriages. Thus, in 1800, 114
+     shillings per quarter; 1801, 122 shillings; 1802 (Peace of
+     Amiens), 70 shillings; 1803, 58 shillings. The number of
+     marriages in the four years respectively was 69,851, 67,288,
+     90,396, 94,379. (_Porter_, Progress of the Nation, III, ch.
+     14, 453.)
+
+     Similarly in Germany, in 1851, the conclusion of peace
+     increased the number of marriages, and the scarcity of 1817
+     diminished it. In Prussia, in 1816, there was one marriage
+     for every 88.1 of the population; in 1828, for every 121.4;
+     in 1834 (origin of the great Zollverein), for every 104; in
+     1855, for every 136.4; in 1858 (hope of a new era), in every
+     105.9. (_v. Viebahn_, Statistik des Zollvereins II, 206.)
+
+     In Austria, the price of rye was:
+
+     ==============================================
+               |  _Per Metze._  |   _No. of_
+               |              | _Marriages._
+     ----------+--------------+--------------------
+     In 1851,  | 2.47 florins |  336,800
+     In 1852,  | 2.11   "     |  316,800
+     In 1853,  | 3.38   "     |  283,400
+     In 1854,  | 4.36   "     |  258,000
+     In 1855,  | 4.43   "     |  245,400 (_Cz�rnig._)
+     ==============================================
+
+     On Sweden, see Wargentin in _Malthus_, II, ch. 2.
+
+     The decreased number of births in consequence of a bad
+     harvest, and _vice versa_, appears of course only during the
+     following calendar year. Thus, in 1847, as compared with the
+     average of the years 1844 and 1845, there were fewer
+     children born in England by 4 per 1,000, in Saxony by 7 per
+     1,000, in Lombardy by 59, in France by 63, in Prussia by 82,
+     in Belgium by 122, in Holland by 159 per 1,000. (_Horn_, I,
+     239 ff.) In Germany, the conscription-years corresponding to
+     the scarcity time, 1816-17, gave a _minus_ of 25 per cent.
+     in many places below the average. (_Bernouilli_,
+     Populationistik, 219.) In the case of marriage, the relative
+     increase or decrease is still more characteristic, so far as
+     our purpose is concerned, than the absolute increase or
+     decrease. Thus in Belgium, for instance, against 1,000
+     marriages dissolved by death, there were, in 1846, only 971
+     new ones contracted, and in 1847 only 747; while in 1850
+     there were 1,500. The falling off in Flanders alone was
+     still greater. Thus, in 1847, there were only 447 marriages
+     contracted for 1,000 dissolved. (_Horn_, I, 170 ff.)
+     However, _Berg_, using Sweden as an illustration, rightly
+     calls attention to the fact, that the variations in the
+     number of marriages and births is determined in part by the
+     number of adults, that is, of the number of births 20 and
+     more years before. Compare _Engel's_ Statist. Zeitschr.,
+     1869, 7.]
+
+     [Footnote 240-3: Sometimes, a sudden increase in the
+     frequency of marriages may have very accidental and
+     transitory causes. Thus, for instance, in France in 1813,
+     when the unmarried were so largely conscripted, the number
+     of marriages rose to 387,000, whereas the average of the
+     five previous years was 229,000. (_Bernouilli_,
+     Populationistik, 103.)]
+
+     [Footnote 240-4: Thus, for instance, in nearly all countries
+     affected by the movement of 1848, there were, during the
+     last months of that year, an unusually large number of
+     conceptions. (_Horn_., I, 241 seq.) According to
+     _Dieterici_, Abh. der Berliner Akademie, 1855, 321 ff.,
+     there was one birth a year for the number of persons living.
+
+     ========================================================
+                 | _Ten years' average._ |   _1849 alone._
+     ------------+----------------------------+--------------
+     In France,  |         36.19         |       35.79
+     In Tuscany, |         24.42         |       22.82
+     In Saxony,  |         24.51         |       23.08
+     In Prussia, |         25.5          |       23.62
+     ========================================================
+
+     The great majority of men at that time believed all they
+     liked to believe.]
+
+     [Footnote 240-5: _Marshall_, Digest of all Accounts, I, 15.
+     _Porter_, I, ch. I, 9.]
+
+     [Footnote 240-6: _Wallace_, in this respect, places industry
+     far behind agriculture. (On the Numbers of mankind in
+     ancient and modern Times.) The county of Lancashire had, in
+     1760, that is shortly before the introduction of the great
+     machine industry, 297,000 inhabitants; in 1801, 672,000; in
+     1831, 1,336,000; in 1861, 2,490,000. Saxony has, in almost
+     every place, a relatively large number of births in
+     proportion as in any locality, commerce and industry
+     preponderate over agriculture, and _vice versa_. See
+     _Engel_, Bewegung der Bev�lkerung im K. Sachsen, 1854. But
+     this should not be generalized into a universal law. For
+     instance, Prussia and Posen have an average number of births
+     greater than that of the Rhine country and Westphalia. (_v.
+     Viebahn_, Statistik des L. V, II, 222.)]
+
+
+SECTION CCXLI.
+
+EFFECT OF WARS ON POPULATION.
+
+We may now understand why it is that only those wars which are
+accompanied by a diminution of the sources of the means of support
+decrease population. The loss in the numbers of mankind produced by
+wars, hardships, etc., would, as a rule, be readily made up for by
+increased procreation.[241-1] Thus, for instance, in Holland, the long
+Spanish war permitted an increase of the population for the reason that
+the national wealth increased at the same time; while the short war with
+Cromwell, which curtailed commerce, caused 3,000 houses in Amsterdam
+alone to remain empty.[241-2] In England and Wales, the population
+increased during the most frightful war of modern times, from 8,540,000
+in 1790, to over 12,000,000 in 1821; in France, from, probably,
+26,000,000 or 27,000,000 in 1791, to 29,217,000 in 1817. England,
+indeed, was itself never the seat of war, and its commerce was increased
+by the war in some directions as much as it was diminished by it in
+others. France's own territory was devastated only in the first and in
+the last years of the war. But the Revolution had, on the whole, once
+the storms of the Reign of Terror were over, not only more equally
+divided the means of subsistence in France, but it had developed them in
+a higher degree.[241-3] [241-4]
+
+It cannot even be unconditionally predicated of emigration, that it
+hinders the increase of population. As soon as people have begun to
+calculate upon emigration, as a resort for themselves in case of
+distress, or upon the emigration of others, by which they would be left
+a larger field for action at home, a number of marriages is contracted
+and a number of children born; which would otherwise not have been the
+case. Most men, especially when young and enamoured, hope for the
+realization of all their wishes. Favorable chances, open to a great
+number of men alike and which every one thinks himself competent to
+calculate, are commonly over-estimated by the majority.[241-5] (See �
+259.)
+
+     [Footnote 241-1: The war of 1870-71 cost Germany 44,890
+     lives. (Preuss. Statist. Ztschr., 1872, 293.) This number is
+     not quite 20 per cent. of the excess of births (794,206)
+     over deaths (563,065) in Prussia in the year 1865. On the
+     other hand, in from 1856 to 1861 there were 10,000 cases of
+     murder and manslaughter in all Europe, Turkey excepted.
+     (_Hausner_, Vergl. Statistik, I, 145.) About the end of the
+     last century, it was estimated that about 1,000,000 children
+     were born annually in France. (_Necker_, Administration des
+     Finances, I, 256.) Of these, about 600,000 outlived their
+     18th year. (_Peuschet_, Essai de Statistique, 31.) There
+     were, annually, about 220,000 marriages. Hence the number of
+     the unmarried was increased annually by 80,000 young men,
+     who, according to _Peucshet_ (32), amounted to over
+     1,450,000. According to this, the number of recruits, per
+     annum, might amount to hundreds of thousands without causing
+     any appreciable diminution in the number of births and
+     marriages. Compare _Malthus_, Principle of Population, II,
+     ch. 6. On the other hand, long continued wars have the
+     effect of keeping the men physically strongest from
+     marriage, and so to deteriorate the race.]
+
+     [Footnote 241-2: Richesse de Hollande, I, 149. During the
+     Amsterdam commercial crisis, from 1795 to 1814, there were
+     for every 4 births an average of 7 deaths. So that the
+     population, in 1795, was still 217,000, and in 1815, only
+     180,000. (_Bickes_, Bewegung der Bev�lkerung Anhang, 28.)]
+
+     [Footnote 241-3: On the other hand, the population of East
+     Prussia, between 1807 and 1815 diminished 14 per cent. (_v.
+     Haxthausen_, L�ndl. Verfassung der Preuss. Monarchie, I,
+     93.) The battles of the Seven Years' War are said to have
+     consumed 120,000 Russians, 140,000 Austrians, 200,000
+     Frenchmen, 160,000 Englishmen, Hanoverians, etc., 25,000
+     Swedes, 28,000 of the troops of the empire, and 180,000
+     Prussians. Yet the population of Prussia fell off 1,500,000.
+     (_Fr�d�ric_, Oeuvres posthumes, IV, 414; Preuss. Gesch.
+     Friedrich's M., II, 349.) During the Thirty Years' War, the
+     population of Bohemia fell from 3,000,000 to 780,000.
+     (_Mailath_, Gesch. von Oesterr, III, 455.) W�rttemberg,
+     according to the military recruiting lists had a population,
+     in 1622, of 300,000 inhabitants. (_Spittler_, Werke, XII,
+     34.) In 1641, the population was only 48,000; according to a
+     promotion-speech of _J. B. Andre�_. But between 1628 and
+     1650, more than 58,000,000 florins were lost by war
+     contributions, and about 60,000,000 florins by plunder;
+     about 36,000 private houses were in ruins. (_Spittler_,
+     W�rtt. Gesch., 254.) On Alsace, Freisingen and G�ttingen,
+     see _Londorp_, Bellum sexenn., II, 563; _Zschocke_,
+     Bayerische Geschichte, III, 302; _Spittler_, Hanov. Gesch.,
+     II, 37 ff., 114. On Germany generally, see _R. F. Hanser_,
+     Deutschland nach dem dreissigj�hrigen Kriege, 1862. However,
+     many estimates of the diminution of the population are
+     exaggerated, because it has not been considered that a great
+     part of the men who disappeared in one place fled to
+     another, for the time being more secure. Compare _Kius_ in
+     _Hildebrand's_ Jahrb., 1870, I ff.
+
+     The population of Massachusetts increased 8,310 yearly,
+     before the War of Independence; during the war, only 1,161,
+     although the enemy scarcely ever entered the country.
+     (_Ebeling_, Gesch. und Erdbeschreib. der V. Staaten I, 236.)
+     Russia had a mortality during the war years, 1853-55, of
+     2,272,000, 2,148,000, and 2,541,000; in the years of peace
+     previous, 2,000,000 at most.]
+
+     [Footnote 241-4: Besides the mere loss of men, war operates
+     destructively on production, since it affects especially the
+     most productive classes as to age, while pestilence, famine,
+     etc., carry off children, old people, and the feeble. Hence,
+     a people's public economy recovers more readily from the
+     last named misfortune than from war.]
+
+     [Footnote 241-5: Compare _Giov. Botero_, Della Cause della
+     Grandezza della Citt�, L. II, and Ragion di Stato, VIII, 95;
+     where colonization is compared to the swarming of bees. _W.
+     Raleigh_, Discourse of War in general, Works VIII. 257 ff.
+     Similarly _Child_, Discourse of Trade, 371 ff. _Ustariz_,
+     Teoria y Practica del Commercio, 1724, ch. 4. _Franklin_,
+     Observations on the Increase of Mankind, which reminds one
+     of the continued growth of polyps.]
+
+
+SECTION CCXLII.
+
+COUNTER TENDENCIES TO THE INCREASE OF POPULATION.
+
+The extension of economic production is always a labor; the surrender of
+one's ordinary means of subsistence to new comers, a sacrifice; but, on
+the other hand, the procreation of children is a pleasure. Hence it
+seems to be incontestably true that the powers of increase of
+population, considered from an entirely sensuous point of view, tend to
+go beyond the bounds of the field of food. Malthus gave expression to
+this fact by saying that population had a tendency to increase in a
+geometrical progression, but the means of subsistence, even under the
+most favorable conditions, only in an arithmetical progression.[242-1]
+If the word "tendency" be correctly understood in the sense in which
+Malthus employed it, so that the reality appears as the product of
+several and partly opposite tendencies,[242-2] the first half of his
+allegation can scarcely be contested.[242-3] If a father has three sons,
+and each of the three three in turn, the love of procreation and the
+power of procreation, all being in the normal condition of health, are
+precisely three times as great in the second generation as in the first,
+and nine times as great in the third, etc. The second half of Malthus's
+principle is more open to doubt. If it be true, as has been asserted,
+that man's means of subsistence consist solely of animals and plants,
+and these, as well as man, increase in a geometrical ratio, and usually
+even with a much larger multiplier, yet it is here, surprisingly enough,
+overlooked that their natural increase is interrupted by the consumption
+of them by man. On the other hand, it is true that even raw material, by
+means of more skillful technic processes (� 134, 157), and the values by
+which man ennobles them, may always increase in a greater ratio than a
+merely arithmetical one. (� 33).[242-4] But, that, in the long run, the
+means of subsistence should keep pace with the extreme of sensuous
+desire and of physiological power, is utterly incredible. Hence, the
+latter tendency is limited by others.
+
+A. And indeed, firstly, by repressive counter-tendencies. As soon as
+there is a larger population in existence than can be supported, the
+surplus population must yield to a mournful necessity; in a favorable
+case, to that of emigration, but usually to hunger, disease and misery
+generally.
+
+"The earth," says Sismondi, "again swallows the children she cannot
+support." It is the weakest especially who are elbowed off the bridge of
+life, over which we pass from birth to the normal death from old age,
+because there is not room enough on it for all. Hence the frightful
+mortality among the poorer classes and in childhood. Now it is the
+absence of a healthy habitation,[242-5] or of proper clothing, or, in
+the case of children, of rational superintendence[242-6] which sows the
+germs of a thousand diseases; and now the absence of proper care, rest
+etc., which intensifies these diseases. Every bad harvest is wont, when
+its consequences are not alleviated by a high and healthy civilization,
+to increase mortality. (� 246, 9). Thus, in Sweden, during the second
+half of the 18th century, the average yearly mortality was = 1:39-40. On
+the other hand, in the bad year 1771 = 1:35.7; 1772 = 1:26.7, and in
+1773, as an after consequence, 1:19.3. In this last, although it was a
+fertile year, there were only 48 births to every 100 deaths.[242-7]
+Among nations low down in civilization, the repressive counter tendency
+may assume a very violent character. How many cases of murder, human
+sacrifice, and even war, have been occasioned by over-population and
+famine.
+
+B. Secondly, by preventive counter tendencies.[242-8] The person who
+believes himself unable to support children refrains from begetting
+them. This, we may call one of the most natural of duties. We might even
+say that the person who begets a child which he knows he is not in a
+condition to support, is guilty of a grievous sin against civil society,
+and of a still more grevious one against his poor child. Strange! To
+beget a child with countless wants, with an immortal soul! That is
+certainly an act the most pregnant with consequences which any ordinary
+man can perform in his life; and yet how thoughtlessly it is performed
+by the majority!
+
+This counter-tendency is to be found only in the case of man. Plants and
+animals yield to the sexual instinct regardless of everything.[242-9]
+Where there is no question whatever of having food enough to support
+children, as is the case with the better-to-do classes, the dread of
+losing the decencies of life, or of "losing caste," acts as a
+preventive[242-10] [242-11] to the founding a family, or increasing the
+numbers of one. Unfortunately, abstinence from the procreation of
+children may be exercised not only in accordance with the moral
+law,[242-12] but also, in contravention of it.[242-13] There is a
+necessary connection between human reason and human freedom and the
+possibility of misusing them. And it is certainly the inevitable fate of
+man either to place a morally rational check on the sexual impulse, or
+to be forcibly held within the limits of the means of subsistence, since
+they cannot be over-stepped by him--through the agency of vice and
+misery.[242-14] [242-15]
+
+     [Footnote 242-1: Principle of Population, I, ch. I. Adam
+     Smith also implicitly held the view that the demand for the
+     means of subsistence is always in advance of them. Wealth of
+     Nat., I, ch. II, pref. and P. I.]
+
+     [Footnote 242-2: This may be represented by what physicists
+     call the "parallelogram of forces." Compare _Senior_,
+     Outlines, 47. _Malthus'_ own explanation of "tendency," in
+     his letter at the end of _Senior_, Two Lectures on
+     Population, 1829.]
+
+     [Footnote 242-3: On the inaccuracy of the expression,
+     "geometrical progression," in the present case, see _Moser_,
+     Gesetze des Lebensdauer, 1839, 132.]
+
+     [Footnote 242-4: _Weyland_, Principles of Population and
+     Production, 1816, 25 ff.]
+
+     [Footnote 242-5: In Paris the mortality is greater in the
+     _arrondissements_ in proportion to their poverty, of which
+     the relative numbers of untaxed dwellings afford a
+     criterion. According to this, between 1822 and 1826,
+
+     =========================================================
+         _The       | _Had a yearly mortality |  _Locations
+     Arrondissement_|    of  1 in every_      | non impos�es._
+     ---------------+-------------------------+---------------
+         II,        |     71 of population.   |     0.07
+        III,        |     67    "             |     0.11
+          I,        |     66    "             |     0.11
+         IV,        |     62    "             |     0.15
+         XI,        |     61    "             |     0.19
+         VI,        |     58    "             |     0.21
+          V,        |     64    "             |     0.22
+        VII,        |     59    "             |     0.22
+          X,        |     49    "             |     0.23
+         IX,        |     50    "             |     0.31
+       VIII,        |     46    "             |     0.32
+        XII,        |     44    "             |     0.38
+     =========================================================
+
+     _Villerm�_, in the Journal des Econ., Novbr. 1853. The
+     average house-rent in _arrondissement_ II, amounted to 605
+     francs per annum; in III, to 426; in I, to 498; in IX, to
+     172; in VIII, to 173; in XII, to 148 francs. Doctor Holland
+     divided all the streets in Manchester into three classes,
+     and each class, in turn, into three sub-classes, according
+     to the qualities of the dwellings. The yearly mortality in I
+     a was 1:51; in I b = 1:45; I c = 36; II a = 1:55; II b =
+     1:38; III c = 1:25. (Report of Inquiry into the State of
+     large Towns and Populous Districts, 1843.)]
+
+     [Footnote 242-6: In Prussia, the Jewish population, between
+     1822 and 1840, increased 34-1/2 per cent.; the Christians
+     only 28-1/2 per cent.; although among the Jews there was
+     only one marriage a year in every 139, and one birth in
+     every 28; among the Christians, in every 112 and 25. This is
+     accounted for, mainly by the favorable circumstances that
+     Jewish mothers leave their homes seldomer to work outside,
+     and thereby devote more attention, even in the lower
+     classes, to the care of their children.]
+
+     [Footnote 242-7: _Wapp�us_, Allg. Bev�lkerungsstatistik, I,
+     315. In Thurgau, in 1815, the mortality was = 2,143, in 1817
+     = 3,440; in Luzerne, in 1820 = 1,543, in 1817 = 3,511.
+     (_Bernouilli_, Populationistik, 219.) And so in London
+     between 1601 and 1800, when the five dearest and five
+     cheapest years of each decade are taken together, the
+     aggregate mortality in the dearest was 1,971,076, in the
+     cheapest, 1,830,835. (_Farr_, in the Statist. Journal, 1846,
+     163 ff.) The rule did not apply to the time 1801-1820; but
+     it did again to the time 1821-1840 (l. c., 174). Compare
+     _Messance_, Recherches sur la Population, 311; _Roscher_,
+     Kornhandel und Theuerungspolitik, 54 ff. When scarcity
+     continues a longer time, the mortality sometimes decreases
+     on account of the largely diminished number of small
+     children. In Lancashire, the number of deaths during the
+     commercial crisis, 1846-47, was 36 per cent. greater than
+     the average of the three last preceding years; in 1857-8 it
+     was 11.9 per cent. greater. (_Ausland_, 1862, No. 44.)]
+
+     [Footnote 242-8: _Malthus_ uses the word "preventive check,"
+     while he calls the repressive counter-tendencies "positive."
+     _R. Mohl_, Polizeiwissenschaft, I, 88, speaks of preventive
+     and destructive causes. Anteriorly and subsequently
+     operating causes. (_Knapp_).]
+
+     [Footnote 242-9: Hence the infinite productiveness of
+     irrational organisms is limited only by their mutual
+     struggle for the means of support. That which cannot live
+     there dies. "In this case there can be no artificial
+     increase of food, and no prudential restraint from
+     marriage." (_Darwin_, Origin of species, 4 ed. 1866, 73.)
+     Compare _B. Franklin_, Observations concerning the Increase
+     of Mankind, � 21. _Lamennais_, indeed, asserts that no plant
+     and no animal takes away food from any other; that the earth
+     has room for all!]
+
+     [Footnote 242-10: The rule that population tends to extend
+     everywhere as far as the means of subsistence will permit,
+     _Sismondi_, N. Principes, VII, ch. 3, has taken occasion to
+     ridicule, basing himself on the example of the Montmorency
+     family. This family has, notoriously, always lived in
+     superabundance, and is, notwithstanding, on the verge of
+     extinction. _Sismondi_ here forgets the relativity of the
+     idea "means of subsistence." Persons occupying an exalted
+     social position not only think that they want more in this
+     respect, but they are wont in forming marriage contracts to
+     use the greatest and frequently exaggerated caution. Hence
+     it is that families of this rank become, relatively
+     speaking, frequently extinct; and, moreover, such a fact is
+     here most frequently taken notice of. _Sadler_, Law of
+     Population, 1830, infers from the frequent extinction of
+     English noble families, that wealth leads to sterility; and,
+     on the other hand, poverty (but not famine!) to prolificacy;
+     and _Doubleday's_ (True Law of Population, 12 ff.)
+     suggestion, in explanation hereof, that over-fed animals and
+     over-manured plants are sterile, as ably refuted in the
+     Edinburg Rev., LI. It is there shown that the marriages of
+     the English peers are fruitful above the average; that their
+     extinction is partly due to the fact that the younger sons
+     seldom married, and that hence there is a lack of collateral
+     relations. But, in great part, such extinction is only
+     apparent; since such a family is said to be extinct when
+     only the male stem is extinct. The French nobility, from the
+     9th to the 11th century, continually increased in number.
+     After this, the succession of females and cases of
+     extinction became more frequent, because the nobility, in
+     order to keep their estates together, began to not desire
+     many sons. _Sismondi_, Hist. des Fran�ais, V, 182. Compare
+     _Benoiston de Ch�teauneuf_, De la Dur�e des Familles nobles
+     en France, in the proceedings of the Acad�mie des Sciences
+     morales et politiques, II, 792 ff. Besides, between 1611 and
+     1819, 763 English baronet families became actually extinct,
+     653 continued to exist, and 139 had been raised to the
+     peerage; an average of from 3 to 4 peer families became
+     extinct yearly. (Statist. Journal, 1869, 224.) There were,
+     about 1569 2,219 Venetian _nobili_; in 1581, 1,843 (_Daru_,
+     VI, 240 ff.); in Addison's time (1705), only 1,500. On the
+     decrease of the Roman patricians, see _Dionys._, Hal., I,
+     85; _Tacit._, Ann., XI, 25; on that of the Spartan knights:
+     _Clinton_, Fasti Hellenici, II, 407 ff.; of the _ehrbaren
+     Geschlechter_, at N�rnberg: _Hegel_, N. Stadtchroniken,
+     1862, 214. Compare, also, Westminster Rev., Oct., 1849.]
+
+     [Footnote 242-11: How, in England, not only many
+     distinguished persons, but also their servants, are kept
+     from marriage in this way, because they are sure of not
+     being able to satisfy the wants of their bachelorhood as
+     fathers of families, see in _Malthus_, P. of P., II, ch. 8.
+     A description of the general misery which would result if
+     all men consumed only that which was physically
+     indispensable, in _Senior_, Outlines, 39.]
+
+     [Footnote 242-12: See _Bastiat's_ beautiful words, in which
+     he characterizes the holy ignorance of children, the modesty
+     of young maidens, the severity of public opinion, etc., as a
+     law of limitation: (Harmonies, 437 seq.)]
+
+     [Footnote 242-13: Compare _Proudhon_, Contradictions, ch.
+     13.]
+
+     [Footnote 242-14: That want of employment or of business has
+     rather a preventive tendency, see _Malthus_, Principle of
+     Population, VII, ch. 14.]
+
+     [Footnote 242-15: _Malthus_, P. of P., II, ch. 13. I
+     formerly called this natural law by the name of the
+     investigator who earned the largest share of scientific
+     merit in connection therewith. It cannot, indeed, be said,
+     that he was the first to observe it. Compare even
+     _Machiavelli_, Discorsi (between 1515 and 1518), II, 5. And
+     so _Giovanni Botero_ taught that the number of the
+     population depended not so much on the number of
+     _congiungimenti_ so much as on the rearing of children.
+     (Ragion di Stato, 1592, VII, 93 ff.) The _virt� generativa
+     degli uomini_, which is always the same, is found face to
+     face with the _virt� nutritiva delle citta_. The former
+     would continue to operate _ad infinitum_, if the latter did
+     not limit it. The larger a city is, the more difficult it is
+     to provide it with the means of subsistence. In the last
+     instance, the slave-sales of Guinea, the cannibalism of the
+     Indians, the robber-system of the Arabians and the Tartars,
+     the migration of nations, crimes, litigation, etc., are
+     traced back to the narrowness of the means of subsistence.
+     (Delle Cause della Grandezza delle Citt�, 1598, Libr. III.)
+     Sir Walter Raleigh (ob. 1618), was of opinion that the earth
+     would not only be full but overflowing with human beings
+     were it not that hunger, pestilence, crime, war, abstinence
+     welcome sterility, etc. did away with the surplus
+     population. (History of the World, I, ch. 8, 4. Discourse of
+     war: Works, VII, 257 ff.) According to _Child_, Discourse of
+     Trade, 371 ff., 149, the population is always in proportion
+     to the amount of employment.
+
+     If England could employ only 100 men while 150 were reared,
+     50 would have to emigrate or perish; and so, too,
+     conversely, occasional vacancies would soon be filled.
+     Similarly _Davenaut_, Works II, 233, 185; who, however, in
+     the practical application of this law of nature, adopts the
+     error of his contemporary, G. King, the statistician,
+     according to whom the population of England would increase
+     to 11,000,000 (II, 176) only after 600 years. _Benjamin
+     Franklin's_ Observations Concerning the Increase of Mankind,
+     Peopling of new Countries, etc., 1751, are very good.
+     Franklin here shows that the same tables of mortality do not
+     apply to town and country, nor to old nations and new ones.
+     The nation increases more rapidly in proportion as it is
+     easy to contract marriage. Hence the increase is smallest in
+     luxurious cities and thickly populated countries. Other
+     circumstances, being equal, hunting nations require the
+     largest quantity of land for the purpose of subsistence, and
+     industrial nations least. In Europe, there was a marriage in
+     every 100 of the population per annum; in America, on every
+     50; 4 children to a marriage in the former, and 8 in the
+     latter.
+
+     Population diminishes as a consequence of subjugation, bad
+     government, the introduction of slavery, loss of territory,
+     loss of trade and food. He who promotes the opposite
+     advantages may well be called the "father of his country."
+     Further, _D. Hume_, Of the Populousness of the Ancient
+     Nations: Discourses No. 10. _Per contra, Wallace_, On the
+     Numbers of Mankind in Ancient and Modern Times, in which the
+     superior populousness of antiquity is maintained, 1753.
+     _Wallace_ relied chiefly on the more equable distribution of
+     land, and the smaller luxury of the ancient nations.
+     _Herbert_, Essai sur le Police des Grains (1755), 319 ff.
+     Les Int�r�ts de la France mal entendus, par un Citoyen
+     (Amsterd., 1757), I, 197.
+
+     _Steuart_ threw light especially on the connection between
+     mortality and the number of marriages (Principles, I, 13);
+     and he claims, with the utmost confidence, that only the
+     want of the means of subsistence, using the expression in
+     its broadest sense (I, 15), can put a limit to the increase
+     of population (I, 14). He calls wrongful procreation
+     (_falsche Zeugung_) the chief cause of pauperism (II, 1),
+     and his views on public charity have a strong Malthusian
+     complexion (I, 14). Compare further _A. Young_, Political
+     Arithmetics (1774), I, ch. 7. _Townsend_, Dissertation on
+     the Poor Laws (1786), makes a happy use of the example of
+     the Island of Juan Fernandez, in which a colony of goats was
+     developed, first alone, and afterwards in a struggle with a
+     colony of dogs, to illustrate the laws of the development of
+     population as limited by the supply of food. Compare the
+     same author's Journey through Spain, II, 8 seq.; 358 ff.,
+     III, 107. _G. M. Ortes_, Riflessioni sulla Popolazione,
+     delle Nazione per rapporto all'Economia nazionale, 1790,
+     ascribes geometrical progression to the increase of
+     population (cap. I) precisely as in the case of other
+     animals; only, in the case of the latter, a limit is put to
+     their increase by _forza_, and in the case of man, by
+     _ragione_. When the population of a country has attained its
+     proper development, celibacy is as necessary in order to
+     keep it so as marriage. Otherwise the door would be opened
+     to extreme pauperism, to the debauchery of the "venus vaga,"
+     to eunuchism and polygamy (4). Strangely enough, _Ortes_
+     asserts that no people are richer per capita than any other.
+     The distribution of wealth among the apparently richer,
+     operates to make individuals heap wealth together in greater
+     quantities (8).
+
+     _Malthus_ himself wrote his classical work under the
+     influence of a very intelligible reaction (1st ed., 1798; 2d
+     ed., 1803). For a whole generation, the European public had
+     had no other view broached but that the tree of human kind
+     might keep on growing even until it reached the heavens, if
+     care were only taken to manure the ground, to water the
+     roots and prune the branches according to the latest
+     world-improving recipes. _Malthus_, in opposition thereto,
+     called attention to the limits placed by nature to the
+     number of mankind. He demonstrated that it was not merely
+     arbitrary laws which opposed the Utopian happiness of all,
+     but in part the niggardliness of nature; and in greater part
+     the passions and sins of men themselves. If he sometimes
+     described the limits as narrower than they really are, and
+     if an occasional coarse expression escaped him, we need not
+     wonder. His polemic was well founded, and he was at the time
+     still a young man (born 1766, ob. 1834). He modified much in
+     the later editions of his work. For instance, he stopped the
+     unsavory sentence in which he says that a man born into the
+     world already occupied, whose family cannot support him, and
+     whose labor society does not need, has not the smallest
+     right to demand the smallest particle of food, and is really
+     superfluous in the world; that there is no place for him at
+     the great banquet of nature; that nature bids him go hence
+     and does not hesitate herself to execute the command. _P.
+     Leroux_ in a small pamphlet in answer to _Malthus_, quotes
+     this sentence at least forty times. Moreover, _M�ser_, who
+     certainly is not considered a misanthrope, was not only
+     acquainted with the Malthusian law, but develops it in
+     words, and with consequences which strongly recall the very
+     words which raised such a storm against _Malthus_. Compare
+     Patr. Phant. I, 42; II, 1; IV, 15 (against vaccination); V,
+     26.
+
+     The opinions of political economists in our own day are, as
+     might be expected, divided on some of Malthus' expressions
+     and on his practical counsels. He has indeed but few such
+     one-sided followers as _Th. Chalmers_, On Political Economy
+     in Connexion with the moral State and moral Prospects of
+     Society, 1832. Malthus' fundamental views, however, are
+     truly scientific. (Kt�ma es aei!) Compare _Baudrillart_,
+     Manuel, 424 seq., and _A Walker_, Science of Wealth, who
+     strangely enough (452) opposes Malthus, and yet is (458)
+     virtually of the same opinion. Even the better class of
+     socialists base themselves on the same view, without,
+     however, thanking Malthus for it. Thus for instance, _K.
+     Marlo_, System der Welt�konomie (1848, 52), passim. For an
+     excellent history of the theory of population, see _R.
+     Mohl_, Gesch. und Literatur der Staatswissenschaften, III,
+     409 ff. (1858).]
+
+
+SECTION CCXLIII.
+
+OPPONENTS OF MALTHUS.
+
+Of Malthus' opponents, John Stuart Mill has said, that a confused notion
+of the causes which, at most times and places, keep the actual increase
+of mankind so far behind their capacity for increase, has every now and
+then given birth to some ephemeral theory, speedily forgotten; as if the
+law of the increase of population were a different one under different
+circumstances, and as if the fecundity of the human species, by direct
+divine decree, was in keeping with the wants of society for the time
+being.[243-1]
+
+The majority of such theories are based, on the proof that Malthus'
+description of one stage of civilization is not true of another,
+although the great discoverer, who, with his admirable many-sidedness,
+had investigated the law of population in and throughout all the stages
+of civilization, had, as a rule, himself given due weight to all of
+this. The objection of unwarranted generalization applies to Malthus
+much less than to the majority of his opponents. Since, for instance, in
+young colonies, even the natural forces, which are in themselves limited
+or exhaustible, afford a wide field of operation for a long time; many
+American writers have supposed that labor alone was the source of
+wealth, and that, to say the least, wealth should increase in the same
+ratio as mankind; and even in a still greater ratio, since the division
+of labor grows easier as population increases in density.[243-2] But
+here it is forgotten that in every instance of economic production,
+there are many factors engaged, each one of which can take the place of
+another only up to a certain point. There are others, especially Grahame
+and Carey,[243-3] who allude to the possibility of emigration, which is
+still so far from being exhausted. But Malthus had nothing to say of the
+impossibility of emigration. He spoke only of the great difficulties in
+its way. (III. ch. 4.) There are many writers who would wish simply to
+ship emigrants off, like a great many doctors who send their patients
+away to die! (� 259 ff.) When Sadler says that human prolificacy,
+circumstances remaining the same, is inversely as the density of
+population, he uses, to say the least, a very inaccurate mode of
+expression.[243-4] The grain of truth hidden in this assertion does
+certainly not come from Gray's theory, that in the higher stages of
+civilization, the better living usual is a hinderance to the increase of
+population, and that the prevailing influence of large cities increases
+mortality;[243-5] but from influences, or, to speak more correctly, from
+free human considerations, on which no one has thrown so much light as
+Malthus. And indeed, where is the man who has better understood or more
+warmly recommended the "aristocratic" impulse which should, in well
+ordered civil society, hold the sexual instinct in equilibrium?[243-6]
+Malthus himself pleasantly derides his opponents, who, to explain how
+the same rifle, charged with the same powder and provided with the same
+ball, produces an effect varying with the nature of the object at which
+it is fired, prefer, instead of calculating the force of resistance of
+the latter, to take refuge in a mysterious faculty by virtue of which
+the powder has a different explosive force, according to the greater or
+less resistance the ball meets when it strikes.[243-7] The peculiarity
+of Godwin's polemics may be inferred from the fact that he considered it
+very doubtful whether the population of England had increased during the
+four preceding generations; and that he traces the increase of the
+population of the United States to the influence of emigration almost
+exclusively, and allows the desertion of whole English regiments in 1812
+ff. to play a part in accounting for that increase.[243-8]
+
+Malthus has been accused of rejoicing over the evils which are wont to
+decimate surplus population; but the same charge might be brought
+against those physicians who trace the diseases back to the causes that
+produce them. He has also been branded as the enemy of the lower
+classes, spite of the fact that he is the very first who took a
+scientific interest in their prosperity.[243-9] As John Stuart Mill has
+said, the idea that all human progress must at last end in misery was so
+far from Malthus' mind, that it can be thoroughly combated only by
+carrying Malthus' principles into practice.[243-10]
+
+     [Footnote 243-1: _J. S. Mill_, Principles I, ch. 10.]
+
+     [Footnote 243-2: _Everett_, New ideas on population, with
+     remarks on the theories of Malthus and Goodwin, 1823.
+     Similarly _Carey_, Principles of Social Science, I, 88 ff.,
+     who, with a "natural philosophical" generalization, shows
+     that the more the matter existing on the earth takes the
+     form of men, the greater becomes the power of the latter to
+     give direction to natural forces with an ever accelerated
+     movement. So also _Fontenay_, in the Journal des
+     Economistes, Oct., 1850, says: _un nombre de travailleurs
+     doubl� produit plus du double et ne consomme pas le double
+     de ce que produisaient et consommaient les travailleurs de
+     l'�poque pr�c�dente_. Even _Bastiat_ inclines to the same
+     over-estimation of one factor of production. He promises in
+     the introduction to his Harmonies �conomiques to prove the
+     proposition: _toutes choses �gales d'ailleurs, la densit�
+     croissante de population �quivaut � une facilit� croissante
+     de production_. (Absolutely it is true, but whether
+     relatively, qu�re.)]
+
+     [Footnote 243-3: _Grahame_, Inquiry into the Principle of
+     Population, 1816; _Carey_, Rate of Wages, 236 ff.]
+
+     [Footnote 243-4: Varies inversely as their numbers: _M. Th.
+     Sadler_, The Law of Population, a treatise in Disproof of
+     the Superfecundity of human Beings, and developing the real
+     Principles of their Increase, III, 1830. There were, for
+     instance--
+
+     ===================================================
+                       | _Inhabitants_ |   _Number of_
+                       | _per English_ | _children to a_
+                       |  _sq. mile_   |   _marriage_
+     ------------------+---------------+----------------
+     The Cape          |       1       |      5.48
+     The United States |       4       |      5.22
+     Russia in Europe  |      23       |      4.94
+     Denmark           |      73       |      4.98
+     Prussia           |     100       |      4.70
+     France            |     150       |      4.22
+     England           |     160       |      3.66
+     ===================================================
+
+     Most of these figures are very uncertain; and even if they
+     were true, they would afford a very bad proof of his
+     assertion. Besides, _Sadler_ was one of those extreme tories
+     who resorted almost to Jacobin measures in opposition to the
+     reforms advocated by Huskisson, Peel and Wellington. Like
+     Sadler, _A. Guillard_, El�ments de Statistique humaine ou
+     D�mographie compar�e, 1855. But, for instance, in Saxony,
+     population has for a long time increased most rapidly, in
+     those places where it is already densest. Compare _Engel,_
+     loc. cit. The five German kingdoms and Mecklenburg-Strelitz
+     hold the same relative rank, on a ten-year average, in
+     relation to the number of births that they do to density of
+     population, (_v. Viehbahn_, Statistik des Z. V., II, 321
+     seq.)]
+
+     [Footnote 243-5: _Gray_, The Happiness of States, or an
+     Inquiry concerning Population, 1875. _Weyland_, Principles
+     of Population and Production, 1816, had already ascribed to
+     industry in itself a tendency to make the increase of
+     Population less rapid!]
+
+     [Footnote 243-6: Compare _Rossi_, Cours d'Economie
+     politique, I, 303 ff.]
+
+     [Footnote 243-7: _Malthus_, Principle of Population, V, ch.
+     3. Thus _J. B. Say_ asks those population-mystics: if in
+     thickly populated countries the power of procreation
+     diminishes of itself, how comes it that even here the
+     extraordinary voids made by pestilence, etc. are so rapidly
+     filled up?]
+
+     [Footnote 243-8: _Godwin_, Inquiry concerning the Power of
+     Increase in the Numbers of Mankind, III, 1821; III, ch. IV.
+     Compare the same socialistic writer's essay: Inquiry
+     concerning public Justice (II, 1793), which in part provoked
+     Malthus' book. _David Booth_ (in Godwin's first book) had
+     the misfortune to ridicule Malthus by comparing his law with
+     the law of gravitation, which he said did not freely operate
+     in nature and was undemonstrable in space void of air! From
+     a better point of view, Bastiat says of Malthus' traducers,
+     that they might as well blame Newton when they were injured
+     by a fall.]
+
+     [Footnote 243-9: Principle of Population, III, ch. 13. His
+     moral severity in other respects is apparent especially in
+     IV, ch. 13, towards the end.]
+
+     [Footnote 243-10: Every good family takes care of their
+     children even before their birth. How far from practical is
+     the view that the means of subsistence come as a matter of
+     course, provided only that men are here before them!]
+
+
+
+
+CHAPTER II.
+
+HISTORY OF POPULATION.
+
+
+
+
+SECTION CCXLIV.
+
+HISTORY OF POPULATION.--UNCIVILIZED TIMES.
+
+In the case of those wild tribes which can only use the forces of nature
+by way of occupation, the small extent of the field of food is filled up
+by even a very sparse population. And the principal means by which
+population is there limited are the following: the overburthening and
+ill treatment of the women,[244-1] by which the simultaneous rearing of
+several small children is rendered impossible;[244-2] the inordinately
+long time that children are kept at the breast;[244-3] the wide-spread
+practice of abortion;[244-4] numerous cases of murder, especially of the
+old and weak;[244-5] everlasting war carried on by hunting nations to
+extend their hunting territory, found in conjunction with cannibalism in
+many tribes.[244-6] Besides, nations of hunters are frequently decimated
+by famine and pestilence, the latter generally a consequence of
+never-ending alternation between gluttony and famine.[244-7]
+
+Most negro nations live in such a state of legal insecurity that it is
+impossible for a higher civilization with its attendant increase of the
+means of subsistence to take root among them. At the same time, their
+sexual impulses are very strong.[244-8] Here the slave-trade constituted
+the chief preventive of over-population. If this traffic were suppressed
+simply and no care taken through the instrumentality of commerce and of
+missions to improve the moral and economical condition of the negroes,
+the only probable but questionable gain would be that the prisoners made
+in the numberless wars generated by famine would be murdered instead of
+being sold.
+
+Nomadic races, with their universal chivalry, are wont to treat their
+women well enough to enable them bear children without any great
+hardship.[244-9] But the mere use of natural pasturage can never be
+carried to great intensity. The transition to agriculture with its
+greater yield of food but with the diminished freedom by which it is
+accompanied is a thing to which these warlike men are so averse that it
+directs the surplus population by the way of emigration into neighboring
+civilized countries, where they either obtain victory, booty and
+supremacy, or are rapidly subjugated. Such migrations are a standing
+chapter in the history of all Asiatic kingdoms; they for a long time
+disturb declining civilized states, finally conquering them, and begin
+the same cycle in the new kingdom.[244-10] Where nomadic races see
+themselves cut off from such migrations their marriages are wont to be
+unfruitful.[244-11]
+
+     [Footnote 244-1: In New Holland they are beaten by their
+     husbands even on the day of their confinement. Their heads
+     are sometimes covered with countless scars. _Collins_ says
+     that for mere pity one might wish a young woman there death
+     rather than marriage. (Account of N. S. Wales, 560 ff.)
+     South American Indian women actually kill their daughters,
+     with a view of improving the condition of women. (_Azara_,
+     Reisen in S. Amerika, II, 63.) How the women among the
+     aboriginal inhabitants of North America were oppressed is
+     best illustrated by the absence of ornaments among the
+     women, while the men were very gaudily decked, and carried
+     small hand-mirrors with them. (_Prinz Neuwied_, N. A. Reise,
+     II, 108 seq.) The early decay of female beauty among all
+     barbarous nations is related to the ill-treatment they
+     receive.]
+
+     [Footnote 244-2: The custom of killing one of twins
+     immediately after birth or of burying a child at the breast
+     with its mother, prevails extensively among savage nations.
+     On New Holland, see _Collins_, 362; on North America,
+     Lettres �difiantes, IX, 140; on the Hottentots, _Kolb_, I,
+     144.]
+
+     [Footnote 244-3: In many Indian tribes, children are kept at
+     the breast until their fifth year. (_Klemm_,
+     Kulturgeschichte I, 236; II, 85.) Among the Greenlanders,
+     until the third or fourth year (_Klemm_, I, 208); among the
+     Laplanders and Tonguses, likewise (_Klemm_, III, 57); among
+     the Mongols and Kalmucks, longer yet. (_Klemm_, III, 171.)]
+
+     [Footnote 244-4: The New Hollanders have a special word to
+     express the killing of the foetus by pressure.
+     (_Collins._) Among certain of the Brazilian tribes, this is
+     performed by every woman until her 30th year; and in many
+     more the custom prevails for a woman when she becomes
+     pregnant to fast, or to be frequently bled. (_Spix und
+     Martius_, Reise, I, 261.) Compare _Azara._, II, 79.]
+
+     [Footnote 244-5: On the Bushmen, see _Barrow_, Journey in
+     Africa, 379 ff.; on the Hottentots, among whom even the
+     wealthy aged are killed by exposure, see _Kolb_, Caput bon�
+     Spei, 1719, I, 321; on the Scandinavian, old Germans,
+     Wendes, Prussians, _Grimm_, D. Rechtsalterth�mer, 486 ff.;
+     on the most ancient Romans, _Cicero_, pro Rosc. Amer, 35,
+     and Festus v. Depontani, Sexagenarios; on Ceos, _Strabo_, X,
+     486; on the ancient Indians, _Herodot._, III, 38, 99; on the
+     Massagetes, _Herodot._, I, 216; on the Caspians, _Strabo_,
+     XI, 517, 520. Touching picture of an old man abandoned in
+     the desert, unable to follow his tribe compelled to emigrate
+     for want of food: _Catlin_, N. American Indians, I, 216 ff.
+     We here see how the killing of helpless old people may be
+     considered a blessing among many nations. Death is also
+     sometimes desired by reason of superstition. For instance,
+     the Figians think that after death they will continue to
+     live of the same age as that at which they died.
+     (_Williams_, Figi and the Figians, I, 183.) The Germans who
+     died of disease did not get to Walhalla! (_W. Wackernagel_,
+     Kl. Schriften, I, 16.)]
+
+     [Footnote 244-6: On the frightful cannibalism practiced on
+     the upper Nile, see _Schweinfurth_ in _Petermann's_ geogr.
+     Mettheilungen, IV, 138, seq. Australian women seldom outlive
+     their 30th year. _Lubbock_, Prehistoric Times, 449. Many are
+     eaten by the men as soon as they begin to get old.
+     (Transactions of the Ethnolog. Society, New Series, III,
+     248.) A chief of Figi Islands who died recently had eaten
+     872 men in his lifetime. _Lawry_, Visit to the Friendly and
+     Fejee Islands, 1850. Even the more highly civilized Mexicans
+     had preserved this abomination. According to _Gomara_,
+     Cronica de la N. Espana, 229, there were here from 20,000 to
+     25,000 human sacrifices a year; according to _Torquemada_,
+     Indiana, VII, 21, even 20,000 children a year. _B. Diaz_, on
+     the other hand, puts the number down at 2,500 only. Compare
+     _Klemm_, Kulturgeschichte, V, 103, 207, 216.]
+
+     [Footnote 244-7: The usual coldness, so much spoken of, of
+     the Indians, seems to have an economic rather than a
+     physiological cause. At least, it has also been observed
+     among the Hottentots. (_Levillant_, Voyage, I, 12 seq.), and
+     under favorable economic conditions the Indians have
+     sometimes increased very rapidly. (Lettres �difiantes, VIII,
+     243.) Whether the practice in vogue among the Botocuds to
+     carry the organ of generation continually in a rather narrow
+     envelope, or that among the Patachos of lacing the foreskin
+     with the tendrils of a plant, is not a "preventive check,"
+     qu�re. Compare _Prinz Neuwied_, Bras. Reise, II, 10; I,
+     226.]
+
+     [Footnote 244-8: On the gold coast, people become fathers in
+     their 12th year even, and mothers at 10. (_Ritter_,
+     Erdkunde, I, 313.) In the whole of the Soudan the climate is
+     so exciting that the intercourse of the sexes is said to be
+     a "physical necessity," and an unmarried man of eighteen is
+     universally despised. But, indeed, the individual is little
+     valued in Africa, on account of the great prolificacy of the
+     African race. (_Ritter_, I, 385.)]
+
+     [Footnote 244-9: _Herodot._, IV, 26.]
+
+     [Footnote 244-10: Compare _Machiavelli_, at the beginning of
+     his Istoria Fiorentina. The migration of the Germani is
+     accounted for simply by the family and marriage relations of
+     the Germans, which necessarily favored prolificacy: _Severa
+     matrimonia ... singulis uxoribus contenti sunt ... septae
+     pudicitia ... paucissima adulteria ... publicatae pudicitiae
+     nulla venia ... nemo vitia ridet ... numerum liberorum
+     finire, flagitium habetur ... sua quemque mater uberibus
+     alit ... sera juverum Venus eoque inexhausta pubertas ...
+     quanto plus propinquorum, tanto gratiosior senectus._
+     _Tacit._, Germ., 14. Entirely similar in character were the
+     migrations of the Normans, which lasted just as long as the
+     resistance to the countries they would invade, seemed to
+     them a matter of less difficulty than the transition to a
+     higher civilization in their own country. _Malthus_ has
+     corrected the extravagant notions concerning the former
+     density of population in the North--the _vagina nationum_,
+     according to Jornandes! (_Malthus_, I, ch. 6.) Compare,
+     however, _Friedrich M._, in Antimachiavel, ch. 21, and the
+     later view: Ouevres, IX, 196.]
+
+     [Footnote 244-11: Among the Bedouins even three children are
+     considered a large family; and they even complain of that
+     number. (_Burckhardt._)]
+
+
+SECTION CCXLV.
+
+INFLUENCE OF A COMMUNITY OF WOMEN AND POLYGAMY.
+
+Most barbarous nations live very unchaste;[245-1] so that, as Tacitus
+observes, the ancient Germans were a brilliant exception to the
+rule.[245-2] Vices of unchastity always limit the otherwise natural
+increase of population. Premature enjoyment exhausts the sources of
+fruitfulness in the case of many.[245-3] The life of the child conceived
+in sin is generally little valued by its parents. Hence the numerous
+instances of exposure and infanticide.[245-4] We have already seen how
+closely, psychologically speaking, a community of goods is allied to a
+community of women. (� 85.) And, indeed, in the lower stages of
+civilization, we find as close an approximation to the latter as to the
+former; and it is difficult to believe that, among men living in a state
+of nudity, the marriage of one man to one woman could properly
+exist.[245-5] But it is as little possible to reconcile a community of
+women with density of population as great national wealth with a
+community of goods. Any one acquainted with the condition and capacities
+of new born children knows that the weak little flame easily goes out
+when not nursed by family care.[245-6]
+
+Polygamy also is a hinderance to the increase of population. Abstract
+physiology must, indeed, admit that a man may, even without any danger
+to his health, generate more children than a woman can bear.[245-7] But,
+in reality, the simultaneous enjoyment of several women leads to excess
+and early exhaustion;[245-8] and if one of them is married after the
+other, the older who might still bear children for a long time are
+neglected by the man.[245-9] Monogamy is, doubtless, the Creator's law,
+since only in monogamous countries can we expect to find the intimate
+union of family life, the beauties of social intercourse and free
+citizenship.[245-10] "God made them male and female."[245-11] And yet in
+all countries with which we are statistically acquainted, there is a
+somewhat larger number of boys than of girls born;[245-12] but this
+excess is removed by the time that puberty sets in, by reason of the
+greater mortality of boys. Only extraordinary conditions which thin the
+ranks of males, such as war and emigration, leave a preponderance of the
+number of women.[245-13] Hence, among barbarous nations, who live in
+everlasting strife (�� 67, 70), polygamy is very generally established.
+Men are seldom deterred therefrom by a solicitude concerning what they
+shall eat, since the women are treated as slaves, and rather support the
+men than are supported by them.[245-14] But in the civilized countries
+of the east, the polygamy of the great may actually lead to the
+compulsory singleness of many of the lower classes, as a species of
+compensation.[245-15] The monstrous institution of eunuchism, which has
+existed time out of mind in the east, is a consequence of this condition
+of things as well as of the natural jealousy of the harem.[245-16]
+
+     [Footnote 245-1: Impurity of the Kamtschatdales, bordering
+     on a community of women. (_Klemm_, Kulturgeschichte, I, 287
+     ff., 350 ff.; II, 206, 297 seq.) On Lapland, see _Klemm_,
+     III, 55. In their purely nomadic period, even the Getes,
+     afterwards remarkable for their noble character (_Horat._,
+     Carm., III, 24), have had very loose relations of the sexes.
+     (_Menander_, in _Strabo_, VII, 297.)]
+
+     [Footnote 245-2: Very unlike the Celts: _Strabo_, IV, 199.
+     But the Germans even at the time when the compensation
+     system alone prevailed, imposed a disgraceful death on the
+     _corpore infames. (Tacit._, Germ., 12.) In keeping with this
+     purity of the Germans was the deep gravity and the genuine
+     heartiness of their ancient nuptial ceremonies. (_Tacit._,
+     Germ., 18.) Similarly, in England throughout the middle
+     ages. (_Lappenberg_, Engl., Gesch. I, 596.) Great moral
+     severity of the Scandinavians (_Weinhold_, Altnord. Leben,
+     255), so that the gratification of the sexual appetite
+     outside of marriage was punishable with death. (_Adam
+     Brem._, IV, 6, 21.)]
+
+     [Footnote 245-3: Abuse of young girls in New Holland
+     (_Collins_, 563); among the American aborigines
+     (_Charlevoix_, Histoire de la N. France, III, 304; Lettres
+     �difiantes, VII, 20 ff.); among the negroes (_Buffon_,
+     Histoire naturelle de l'Homme, VI, 255).]
+
+     [Footnote 245-4: Infanticide in Kamtschatka, _Klemm_, I,
+     349.]
+
+     [Footnote 245-5: In most mythical histories, the
+     institutions of property and of marriage are ascribed to the
+     same name (Menes Cecrops, the Athenian Thesmophories.) Among
+     the Indian tribes of Terra Firma, the exchange of wives and
+     the _jus prim� noctis_ of the chiefs are very common.
+     (_Depons_ Voyage, I, 304, ff.) In North America, the Indians
+     are very eager to rent out their wives for a glass of
+     brandy. (_Prinz Neuwied_, N. A. Reise, I, 572 seq.) Compare
+     _Lewis_ and _Clarke_, Travels to the Source of the Missouri
+     and the Pacific Ocean, 1804-1806. Almost always on entering
+     a higher age-class it is one of the principal conditions to
+     leave one's wife for a time to the more distinguished. On
+     feast days, prayer days, etc., the women give themselves
+     publicly up to vice; and this can be commuted only by a
+     gift. (_Prinz Neuwied_, I, 129 ff., 272.) Community of women
+     in California. (_Bagert_, Nachrichten von der Halbinsel C.
+     1772.) In many of the South Sea Islands, the youth of the
+     higher classes were wont to form themselves into so-called
+     _arreyo-societies_, the object of which was the most
+     unlimited intercourse of the sexes (a pair being united
+     generally only from 2 to 3 days), and the murder of the new
+     born children. The girls principally were murdered, and
+     hence the missionaries at Otaheite (New Cytheria) found only
+     1/5 as many women as men. _Chaque femme semble �tre la femme
+     de tous les hommes chaque homme le mari de toutes les
+     femmes._ (_Marchand_, I, 122.) The many governing queens
+     here are characteristic. Compare _Forster_, Reise II, 100,
+     128; _Kotzebue_, Reise, III, 119; European Magazine, June,
+     1806; _Reybaud_, Voyages, et marines, 128, and the
+     quotations in _Klemm_, Kulturgesch., IV, 307.
+
+     Similar customs are found among the nomads. The Bedouins
+     dissolve their marriages so easily that a man forty-five
+     years old had 50 wives; family secrets are a thing unknown
+     there. (_Burckhardt_, Notes on the Bedouins, 64; Travels
+     app. II, 448; _Ritter_, Erdkunde, XII, 205, 211, 983.) On
+     the Libyans, see _Herodot._, IV, 168, 172, 186, 180: on the
+     Massagetes, _Herodot._, I, 216; on the Taprobanes, _Diod._,
+     II, 58; on the Troglodytes, _Pomp, Mella._, I, 8,
+     _Agatharch_, 30. Community of women among the ancient
+     Britons, _Caesar_, B. G. V, 14 seq.; also among the naked,
+     tatooed Caledonians, _Dio Cass._, LXXVI, 12; probably also
+     among the cannibal Irish. _Strabo_, IV, 201. Great laxity of
+     the marriage tie in Moelmud's laws of Wales, (_Palgrave_,
+     Rise and Progress of the English Commonwealth, I, 458 ff.)
+     in which country a species of tenure in common of land and
+     servants was customary. (_Wachsmuth_, Europ. Sittengesch.
+     II, 225.) In Russia, in very ancient times, only the Polanes
+     had real marriages. (_Nestor v. Schl�zer_, I, 125 seq.)
+     Something very analogous even among the Spartans: same
+     education for boys and girls, admittance for men to the
+     female gymnasiums; marriage in the form of an abduction, and
+     afterwards fornication. (_Xenoph._, De rep. Laced. I, 6:
+     _Plutarch_, Lycurg. 15.) Adultery tolerated by law in
+     countless cases. (_Xenoph._, II, 7 ff.; _St. John_, The
+     Hellenes, I, 394.) History of the origin of the so-called
+     Partheni�; _Strabo_, VI, 279. (_Supra_, � 83.) The custom
+     which prevails among so many barbarous nations to designate
+     one's progeny by the name of the mother, _Sanchoniathan_
+     traces to the licentiousness of women. (p. 16, Orell.)
+     Traces of this also in Egypt: _Schmidt_, Papyrusurkunden,
+     321 ff. Avunculus means little grand-father. Many proofs
+     which _Peschel_, V�lkerkunde, 243 seq. explains otherwise,
+     but which seem to me to point to an original community of
+     wives.]
+
+     [Footnote 245-6: The relation existing between the so-called
+     organization of labor (� 82) and a community of wealth is
+     repeated in the relation of a community of wives to the
+     situation in Dahomey, where every man has to purchase his
+     wife from the king. _Gumprecht_, Afrika, 196. Similarly
+     among the Incas: _Prescott_, Hist. of Peru, I, 159. Even the
+     sale of wives is a step in advance as compared with a
+     community of wives (� 67 seq).]
+
+     [Footnote 245-7: It is said that a German prince of the 18th
+     century had 352 natural children. (_Dohm_, Denkw�rdigkeiten,
+     IV, 67.) Feth Ali, shah of Persia, had made 49 of his own
+     sons provincial governors, and he had besides 140 daughters.
+     (_Ker Porter_, II, 508.)]
+
+     [Footnote 245-8: Turkish married men are frequently impotent
+     at the age of 30. (_Volney_, Voyage dans la Turquie, II,
+     445.) Similarly in Arabia. (_Niebuhr,_ Beschreibung, 74.)
+     The use of aphrodisiac means very wide-spread in the East.
+     According to _Niebuhr_ (76), monogamous marriages produced
+     absolutely more children than polygamous. Compare _G.
+     Botero_, Ragion di Stato, VIII, 93 ff.; _Montesquieu_,
+     Lettres Persanes, N., 114; _S�ssmilch_, G�ttl. Ordnung, I,
+     Kap., 11. On the other hand, _Th. L. Lau_, Aufrichtiger
+     Vorschlag von ... Einrichtung der Intraden (1719), 6,
+     recommends the allowing of polygamy as a means of increasing
+     population.]
+
+     [Footnote 245-9: Rehoboam had 18 wives and 60 concubines,
+     and only 88 children (II Chron., 11, 21); that is not much
+     more than one child by each.]
+
+     [Footnote 245-10: The high esteem for woman requisite to
+     true love seems to be almost irreconcilable with polygamy.
+     The wife stands to the husband in the relation of a
+     mistress; and, in reference to the latter, fidelity has
+     scarcely any meaning. The husband also has no confidence in
+     his wife; and hence the seclusion of the harem. But the
+     domestic tyrant is easily made the slave of a higher power.
+     And what becomes of fraternal love with the half-brother
+     feeling of children of different mothers?]
+
+     [Footnote 245-11: Genesis 1, 27; 5, 12; 7, 13.]
+
+     [Footnote 245-12: Compare _J. Graunt_, Natural and Political
+     Observations on the Bills of Mortality (1662). During the
+     course of the 19th century, according to averages made from
+     long series of years, there were, for every 1,000 girls born
+     alive in Lombardy, 1,070 boys; in Bohemia, 1,062; in France,
+     1,058; in Holland, 1,057; in Saxony, 1,056; in Belgium,
+     1,052; in England, 1,050; in Prussia, 1,048. On the whole,
+     the ratio in 70,000,000 children born alive was as 100 :
+     105.83. The excess of males over females in bastards is
+     smaller than in the case of legitimate children, in towns
+     than in the country. Everything considered, the number of
+     boys born seems to be greater than the number of girls in
+     proportion as the father is in advance of his wife in years.
+     Compare _Sadler_, Law of Population, II, 343. _Hofacker_,
+     Ueber die Eigenschaften die sich vererben, 51 ff. _Wapp�us_,
+     Allg. Bev�lkerungstatistik, II, 151, 160 ff., 306 ff. _Per
+     contra_, we have _Legoyt's_ supposition that the number of
+     boys born is greater in proportion as the parents are more
+     nearly of an age: Statistique compar�e, 500.]
+
+     [Footnote 245-13: According to the censuses between 1856 and
+     1861, there are for every 1,000 men in Belgium 994 women; in
+     Austria, 1,004; in Prussia, 1,004; in France, 1,001; in
+     England, 1,039; in Holland, 1,038. The majority of the
+     latter seems to have diminished everywhere the greater the
+     distance in time from the most recent great wars; and to
+     belong only to those age-classes which were coeval with
+     those wars. (Preuss. amtliche Tabellen f�r 1849, I, 292.) In
+     the United States there were, 1800-1844, for every 1,000
+     women, 1,033-1,050 men; mainly accounted for by large
+     immigration. Between 1819 and 1855 the immigration was
+     2,713,391 men and 1,720,305 women. (_W. Bromwell_, History
+     of Immigration to the United States, New York, 1856.) In
+     Switzerland, among the population belonging to the cantons,
+     there were for every 1,000 men, 1,038 women; among the
+     foreign Swiss, 970; among foreigners, 650. (_Bernouilli_,
+     Populationistik, 31.) Compare _Horn_, loc. cit., I, 105 ff.,
+     who supposes a natural principle of equilibrium: the greater
+     the preponderance of the number of women, the more does it
+     happen that only the younger women are married; the greater
+     consequently the difference between the ages of the married
+     couple, and the more probable the birth of boys, and _vice
+     versa_. (115 ff.)]
+
+     [Footnote 245-14: Compare _Catlin_, N. American Indians, I,
+     118 ff. Even Strabo believed that among the Median
+     mountaineers each man had five wives! (XI, 526.)]
+
+     [Footnote 245-15: Concerning Solomon's 700 wives and 300
+     concubines, see I Kings, 11, 3; according to the Canticle of
+     Canticles, only 60 wives and 80 concubines. According to
+     _Mirkhond_ and _Khondemir_, there was in the place in which
+     the Sassand shah resided, 3,000 women of the harem and
+     12,000 female slaves. Polygamy among the latter class is
+     seldom possible or thought of. Of 2,800 Moslems in Bombay,
+     only 100 lived in polygamy, and only 5 had three wives each.
+     (_Ritter_, Erdkunde, 1088.) I lay no weight here on the
+     assertion so frequently repeated of travelers in the east,
+     that more girls than boys are born there; for the reason
+     that there is there no real statistics, and that the infidel
+     travelers can be permitted few glimpses into the secrecy of
+     family life. _Lady Sheil_ indeed assures us that in Persia
+     itself the opinion prevails that there are a great many more
+     women than men. Glimpses of Life and Manners in Persia,
+     1855. Similar pretense among the Mormons.]
+
+     [Footnote 245-16: We find, even on Egyptian temples,
+     pictures representing the castration of prisoners. _Franck_,
+     in the M�moires sur l'Egypte, IV, 126. On Babylon, see
+     _Hellanicus_, apud. Donat. ad Terent. Eunuch., I, 2, 87.
+     This province, besides Assyria (the ancient seat of sultan
+     glory), delivered 500 castrated boys per annum to the king
+     of Persia. (_Herodot._, III, 92.) Of the califs, Soliman is
+     said to be the first (at the beginning of the 8th century)
+     who had his harem superintended by eunuchs; a very sensual
+     master who frequently changed his wives. (_Reiske Z.
+     Abulfeda_, I, 109 ff.; _Weil_, Gesch. der Kalifen, I, 573.)
+     At an audience which the calif Moktadir gave to a Byzantine
+     ambassador, there appeared 4,000 white and 3,000 black
+     eunuchs. (_Rehm._, Gesch. des Mittelalters, I, 2, 32.) In
+     the harems of the present Persian persons of rank, there are
+     usually from 6 to 8 eunuchs. _Rosenm�ller_, Altes und Neues
+     Morgenland, IV, 290. In Upper Egypt, the castration of
+     handsome boys by monks (!) is a regular trade. About 2 per
+     cent. die in consequence of the operation, the others rise
+     in consequence in price from 200-300 to 1,000 piasters.
+     (_Ritter_, Erdkunde, I, 548.) In the Frankish middle age,
+     the merchants of Verdun castrated persons to sell them in
+     Spain. Compare _Liutprand_, Hist., VI, 3, in _Muratori_,
+     Script. Rerum Ital., II, 1, 470.]
+
+
+SECTION CCXLVI.
+
+HISTORY OF POPULATION.--IN HIGHLY CIVILIZED TIMES.
+
+The conditions of population among mature and flourishing nations is
+characterized by this, that the moral and rational preventive tendencies
+counter to over-population decidedly preponderate. Here so much value is
+attached to the life, and to the healthy and comfortable life of human
+beings already in existence that even the majority of the lower classes
+take care to bring no more children into the world than can be properly
+supported, nor to bring them into being in advance of food. Here, too,
+mortality is relatively small, which when population is stationary is
+found in connection with a higher average duration of human life.[246-1]
+While among savage and semi-savage nations, travelers are struck by no
+phenomenon as much as by the total absence of old men,[246-2] in most
+European nations the average duration of life has, during the last
+centuries, seemed to noticeably increase. In France, for instance,
+between 1771 and 1780, on a population of 29,000,000 at most, there were
+as many deaths as on 35,000,000 between 1844 and 1853.[246-3] In Sweden,
+the classic land of statistics relating to population, mortality from
+1749 to 1855 had diminished 0.107 per cent. per annum.[246-4] [246-5]
+
+No reasonable man considers mere living the highest good; but, from an
+average prolongation of life, we may with great probability infer an
+improvement in the means of subsistence, in hygienic measures, etc.,
+even for the lower classes, who everywhere constitute the great majority
+of the population. _Aisance est vitalit�!_--at least on the supposition
+that morality remains the same.[246-6] How great may not have been the
+effect, for instance, of the healthier mode of the building of modern
+cities, of the disappearance of the greater number of fortifications
+etc., the more rational character of the healing art, the extension of
+vaccination,[246-7] the hygienic measures adopted by governments,[246-8]
+the better care of the poor and especially the asylums for small
+children! The modern system of agriculture and of the corn trade make
+famines less destructive of life.[246-9] (� 115). The modern
+quarantine-system has protected us entirely against a number of plagues;
+and the worst epidemics of our day cannot be compared with those of
+earlier periods or in less civilized countries. In the second half of
+the 17th century, it was estimated in London that a plague would occur
+once in every 20 years, each of which swept away one-fifth of the entire
+population.[246-10] And in that very city the annual mortality between
+1740 and 1750 varied three-fifths, during the second half of the 18th
+century only one-third, during the 19th century only one-fifth in the
+same decade; a clear proof of the diminished fatality of
+epidemics.[246-11] [246-12]
+
+     [Footnote 246-1: The so-called _Populationistikers_ are wont
+     to distinguish between the average and probable duration of
+     life (_vie moyenne--vie probable_); and understand by the
+     former the number of years which, on an average, have been
+     accorded to one deceased; by the latter, the number of years
+     after the expiration of which one-half of a given number of
+     human beings have disappeared. If _x_ deceased persons have
+     lived an aggregate of _s_ years, their average duration of
+     life = _s_/_x_. In the case of a whole people, indeed, even
+     the many-years' average of the duration of life of those
+     deceased expresses the true average duration of life only
+     when (a rare case) the aggregate population remains
+     stationary. For, when the population is increasing, the
+     average age of the deceased is smaller than the average
+     duration of life, and, when population is decreasing,
+     larger. In the saddest case of all, when there are no births
+     whatever, and the nation is gradually dying out, there would
+     be an increase from year to year of the average age. In all
+     such cases, strictly speaking, only the actual observation
+     and following up of those born, until they die; can afford a
+     safe result. This is _Hermann's_ method, introduced into
+     Bavaria since 1835. Compare the XIII. and XVII. numbers of
+     the official Bavarian statistics with _G. Meyer's_ criticism
+     in _Hildebrand's_ Jahrb�chern, 1867, I. And indeed _Hopf_,
+     Preuss. Statist. Zeitschr., says that a complete table of
+     mortality can be made, according to the best method, only
+     after centuries of observation.
+
+     Compare _Kopf_, in the 3d edition of _Kolb's_ Handbuch der
+     Statistik, and the solid works of _G. F. Knapp_, Ueber die
+     Ermittelung der Sterblichkeit (1868) and Die Sterblichkeit
+     in Sachsen (1869). _Price's_ mode of calculation of which
+     _Deparcieux_ is the real author, which divides the number of
+     the living by the arithmetical mean of the number of births
+     and deaths is not only inaccurate (_Meyer_, loc. cit., 43
+     ff.) but erroneous in principle, since it allows two
+     countries of equal population to be the same, the one of
+     which has 120,000 births and a mortality of 80,000, and the
+     other, on the contrary, 80,000 births and a mortality of
+     120,000. _Engel_ recommends as the measure of real vitality
+     the ratio between the "living years" and the "dead years,"
+     meaning by the former the sum of the years which those still
+     living have lived through, and by the latter the sum of the
+     years lived through by those who have died within a given
+     period. (Preuss. Statist. Zeitschr., 1861, 348 ff.) But the
+     inference which may be drawn from a high or a low average of
+     life is altogether ambiguous. A high average may as well be
+     produced by a great mortality among children as by a
+     favorable mortality among those of mature age; and a low
+     average as well by a relatively small number of births as by
+     a relatively short duration of life. (_Meyer_, loc. cit.,
+     23, 24.)]
+
+     [Footnote 246-2: On the aborigines of America, see Lettres
+     �difiantes, VII, 317 ff. _Cook,_ Third Voyage, III, ch. 2.
+     _La P�rouse_, Voyage, ch. 9. _Robertson_, Hist. of America
+     B., IV. _Raynal_, Histoire des Indes L., XV. On the African
+     negroes: _M. Park_, ch. 1. They are said to manifest the
+     symptoms of old age at 40, and very seldom to live to be
+     over 55 or 60 years of age.]
+
+     [Footnote 246-3: _Necker_, De l'Administration des Finances
+     de la France, 1784, I, 205 ff., gives for 1771-80 the
+     average number of births, per annum, 940,935; of deaths,
+     818,391; the population at 24,229,000. _Legoyt_, Statist.
+     Comp., estimates the last, in 1784, at at least 26,748,843,
+     probably even at 28,718,000. During the period, 1844-53,
+     35,000,000 to 36,000,000 Frenchmen had only about as many
+     births (956,317) and deaths (815,723) as a much smaller
+     population before the Revolution--the latter numbers,
+     according to official estimation, omitting the
+     still-born--which _Necker_ also scarcely took into
+     consideration. _C'est la diff�rence entre un peuple de
+     prol�taires et une nation, dont les deux tiers jouissent des
+     bienfaits de la propri�t�. (Moreau de Jonn�s)._ In France,
+     there was one death, in 1784, on every 30 living; in 1801,
+     on every 35.8 living; in 1834-5, on every 38 living; in
+     1844, on every 39.9 living; in 1855-57 (average), on every
+     41.1 living; in 1860-65 (average), on every 43.7 living. It
+     is also probable, that the average duration of life in
+     France increased from the fact that, from 1800 to 1807, the
+     number of persons subject to conscription was only 45 per
+     cent. of the whole corresponding number of births; but that
+     from 1822 to 1825 it was 61 per cent. (_Bernoulli_,
+     Populationistik, 452.) On Paris alone, see _Villerm�_,
+     M�moire lu � l'Acad�mie des Sciences, 29 Nov., 1824. Compare
+     _supra_, � 10.]
+
+     [Footnote 246-4: _Wapp�us_, Allg. Bev�lkerungsstatistik. In
+     Prussia, in the less cultured provinces (the eastern), the
+     mortality and number of births is greatest; but in the whole
+     country the relative mortality seems to have remained
+     stationary since 1748. (_Engel_, Preuss. Statist. Zeitschr.,
+     1861, 336 seq.) And even the average age of the deceased
+     decreased even between 1820 and 1860 (344 ff.) In Berlin
+     alone, the arithmetical mean of the number of births and
+     deaths shows no improvement, at least (loc. cit. 1862,
+     195).]
+
+     [Footnote 246-5: In Geneva, where there have been almost
+     uninterrupted tables of mortality, giving the age at the
+     time of death, the average duration of life during the 2d
+     half of the 16th century is estimated at 21-1/6 years;
+     during the 17th century, at 25-3/4 years; from 1701 to 1750,
+     at 32-7/12 years; from 1750 to 1800, at 34-1/2 years; from
+     1814 to 1833, at 40-2/3 years. Compare _Mallet_, Recherches
+     historiques et statistiques sur la Population de Gen�ve,
+     1837, 98 ff., 104 ff., and _Bernouilli_, Schweiz, Archiv.,
+     II, 77; _per contra, d'Ivernois_, sur la Mortalit�
+     proportionelle des peuples consid�r�e comme Mesure de leur
+     Aisance et Civilization, 1833, 12 ff. But little can be
+     inferred from this, on account of the large immigration, of
+     adults for the most part. Geneva is said to have had, in the
+     16th century, never much more than 13,000 inhabitants; at
+     the end of the 17th century it had 17,000; in 1789, 26,000;
+     between 1695 and 1795 there was an increase of 6,000 at
+     least from abroad. (_Bernouilli_, Populationistik, 369 seq.)
+     Compare _Wapp�us_ in the G�tting. Gesellsch. der Wissensch.
+     Bd., VIII, 1860, who, however, as well as _Neison_,
+     Contributions to Vital Statistics, VI ff., is too skeptical
+     as regards modern progress in vitality.]
+
+     [Footnote 246-6: Higher civilization, indeed, instead of
+     leading to higher vitality, may lead to immoderate toil and
+     immoderate enjoyment. (_Sch�ffle_, in the D.
+     Vierteljahrsschrift, April, 1862, 340.) _Engel_ says that,
+     in general, life is more intense in our day, and hence leads
+     to a more rapid exhaustion of individual life-force.
+     (Preuss. Statist. Ztschr., 1862, 53.) According to English
+     experience of the well-fed classes, those have the greatest
+     duration of life who otherwise live in modest circumstances.
+     Thus, for instance, clergymen thirty years of age have still
+     an average expectation of life of 39.49 years; members of
+     the learned professions, 38.86; country gentlemen, 40.22;
+     members of the aristocracy, 37.31; princes of the blood,
+     only 34.04; sovereigns, only 27.16 (Statist. Journal, 1859,
+     356 ff.); while agricultural laborers, who have sufficient
+     means and intelligence to participate in the so-called
+     friendly societies, have an expectation of life of 40.6
+     years after their thirtieth year. (_Neison_, loc. cit.) On
+     the whole, it seems to be in harmony with the democratic
+     leveling tendencies of our own age, that the better care of
+     children and of the sick has lengthened short lives, and
+     that the unrest of the times has shortened the long lives,
+     although the level of the general average continually rises,
+     notwithstanding. Thus, in Geneva, the proportion of those
+     who outlived their thirtieth year was: in the 16th century,
+     after 1549, 29.87; in the 17th century, 37.29; in the 18th
+     century, 49.39; in the 19th century, until 1833, 58.85 per
+     cent. of the number of births. On the other hand, the
+     expectation of life of those who had attained their 80th
+     year, was in these four centuries respectively 6.22, 5.87,
+     4.40 and 3.84 years. (_Mallet_, l. c., and Statist. Journal,
+     1851, 316 ff.) In keeping with this is, that according to
+     _Guy's_ researches, the average duration of life of the
+     English peerage and baronetage was, in 1500-1550, 71.27
+     years; 1550-1600, 68.25 years; 1600-1650, 63.95 years;
+     1650-1700, 62.40 years; 1700-1745, 64.13 years. (Statist.
+     Journal, 1845, 74.) However, we may most directly infer a
+     favorable condition of things from the diminished mortality
+     of children, for the reason that this, far more directly
+     than the mortality of adults, is conditioned by the quality
+     of food. The younger a child is, the more exclusively is its
+     life-force the product of these two factors: the physical
+     constitution of its parents and the care bestowed upon it.
+     Compare _F. J. Neumann_, Die Gestaltung der mittleren
+     Lebensdauer in Preussen, 1865, 26 ff. In Prussia, in
+     1751-60, only 312 in 1,000 outlived their tenth year; in
+     1861-70, 633 in 1,000. Yet, since 1856, the mortality of
+     children has again begun to increase. (_Knapp_,
+     Mittheilungen des Statist. Bureaus, VIII, p. 8.)]
+
+     [Footnote 246-7: _Duvillard_, Analyse ou Tableau de
+     l'Influence da la petite V�role, 1806, is of opinion that
+     before vaccination only 4 per cent. of those over 30 years
+     of age were spared by the small-pox; that two-thirds of all
+     new-born children were attacked by the disease sooner or
+     later, and that from one-eighth to one-seventh of those
+     attacked died; and of small children even one-third. Hence,
+     in many countries, the average duration of life was
+     increased 3-1/2 years by reason of vaccination. In London,
+     between 1770 and 1779, of 1,000 deaths, 102 were caused by
+     the small-pox; in from 1830 to 1836, only 25 in 1,000.
+     (_Porter_, Progress of the Nation, I, 1, 39.) In Berlin,
+     between 1792 and 1801, 4,999 persons died of the small-pox;
+     between 1812 and 1822, only 555. (_Casper._) That this is
+     really a consequence of vaccination is proved by the facts
+     of the Chemnitz small-pox epidemic of 1870-71, during which,
+     in four of the streets principally visited by it, 9 per
+     cent. were taken ill. Of 4,375 persons who had been
+     vaccinated, 2.12 per cent. were attacked; of 644 who were
+     not vaccinated, 54.38 per cent. Of those attacked, 2.1 per
+     cent. of the former and 11.3 per cent. of the latter died.
+     (Leipzig Tageblatt, 5 Mai, 1871.)]
+
+     [Footnote 246-8: Among the earliest institutions of medical
+     police are the following: the Swedish Collegium medicum
+     under Charles XI; the Prussian, 1724; the Danish, 1740; the
+     quarantine law of Louis XIV., of 1683; the Parisian bureau
+     of nurses, 1715; lying-in establishments since 1728; French
+     institutions for the saving of drowned persons, 1740;
+     English institutions for the saving of persons in cases of
+     apparent death, 1744; bathing largely promoted by government
+     since the eighteenth century; prohibition by Maria Theresa
+     of burial in churches and of locating cemeteries too near
+     dwelling houses, in 1778. Even _Thomasius_, De Jure
+     Principum circa Sepultur., � 8, had advised this; and, in
+     Italy, _Fr. Patricius_, De Inst. Republ. V, 10. On ancient
+     medical police, see _Pyls_ Repertorium f�r �ffentliche und
+     gerichtliche Arzneiwissenschaft, II 167, ff. III, 1 ff.]
+
+     [Footnote 246-9: In France, the number of deaths in the
+     cheap years, 1816 and 1819, amounted to an average of
+     755,877; of the dear years, 1817 and 1818, to an average of
+     750,065. (Ann. d'Economie politique, 1847, 333.) Thus, the
+     same scarcity in Pomerania increased its otherwise smaller
+     mortality relatively less than in Posen. (_Hildebrand's_
+     Jahrbb. 1872, I, 292.) It is a good sign that in Altenburg,
+     between 1835 and 1864, the variation in the price of corn
+     had no influence on its mortality, although the number of
+     marriages and of births was conditioned by it. (_v. Scheel_
+     in _Hildebrand's_ Jahrbb., 1866, I, 161 ff.)]
+
+     [Footnote 246-10: _Sir W. Petty_, Several Essays, 31 seq.
+     Great regularity of epidemics in the tropical world:
+     _Humboldt_, N. Espagne, II, 5. The great plague in the
+     middle of the 14th century is said to have destroyed 2/3 of
+     the population of Norway, of Upland, 5/6; in the mountain
+     districts of Wermeland only 1 boy and 2 girls were left.
+     (_Geijer_, Schwed. Gesch., I, 186.) According to _Sismondi_,
+     Gesch. der Italien. Republiken, VI, 27, 3/5 of the whole
+     population of Europe died at that time. How the cholera
+     would have raged among our forefathers in the middle ages!
+     Certainly, as it does now in the East Indies; since, when of
+     those really attacked by the disease among ourselves so many
+     die, we cannot attribute our small number of deaths from
+     cholera to the smaller intensity of the disease or to the
+     greater skill of our doctors, but chiefly to the better
+     nourishment of our people, to their better dwellings and
+     greater cleanliness. Compare _Heberden_, On the Increase and
+     Decrease of Disease, 1801.]
+
+     [Footnote 246-11: _Bernouilli_, Populationistik, 363, seq.
+     Whether, on this account, we can infer the increased health
+     of the people, is very much doubted by the aged _laudatores
+     temporis acti_. They would have us believe that it is
+     possible that the prolongation of the average of human life
+     is to be explained by taking into account the case of
+     numerous valetudinarians who formerly died early, but who
+     are _now_ preserved to drag out a miserable existence. The
+     relative number of those who have died of old age did not
+     noticeably increase between 1816 and 1860 either in Berlin
+     or in the Prussian state. (_Engel_, Zeitschr., 1862, 222.)
+     Compare, per contra, _Marx_, Ueber die Abnahme der
+     Krankheiten durch die Zunahme der Civilization: transactions
+     of the G�ttinger Gesellschaft der Wissenschaften,
+     1842--44,43, ff. The extreme limit of the decrease of
+     mortality, where there are no other causes of death but
+     inevitable weakness of childhood and age, _J. G. Hoffmann_
+     thinks would be one death per annum for every 52-53 living,
+     and _Wapp�us_, one in 57-58. (Allg. Bev�lkerungstatistik, I,
+     231, 340); (_Sch�ffle_, System, I, 571); according to
+     Capeland observations, one for every fifty.]
+
+     [Footnote 246-12: This much, however, is clear, that the
+     life insurance companies of the present day cannot rely on
+     the calculations made in earlier stages of civilization; on
+     _S�ssmilch's_, for instance; and just as little on those of
+     the old Romans in L. Digest. ad Leg. Falcidiam. Compare
+     _Schmelzer_, De Probabilitate Vitae ejusque Usu forensi,
+     1788.]
+
+
+SECTION CCXLVII.
+
+HISTORY OF POPULATION.--NUMBER OF BIRTHS AND DEATHS.
+
+There is found to be in most states, where a decrease in mortality has
+been observed, a diminished number of births likewise.[247-1] This,
+indeed, happens necessarily only in the case in which the means of
+subsistence either do not increase at all, or in a less degree than
+mortality has decreased. Thus, towards the end of the 18th century,
+Norway was the country where the increase and decrease of the population
+were most remarkable for their smallness. There was only one death
+between 1775 and 1784 for every 48 living persons; but, at the same
+time, only one marriage for every 130 living.[247-2] The organization of
+labor was so little developed among the Norwegians, especially in the
+absence of important cities, the industries of which might have been
+able to absorb the surplus population, that almost every one of its
+inhabitants was in a condition to calculate in advance whether or not he
+would have enough to support a family. A person born in the country
+remained generally in his native village all his life. To found a family
+he had either to own a peasant's estate himself or wait until one of the
+day laborer's huts (_Kathe_), of which there were several attached to
+each such estate, was vacant. A too large family would certainly have
+died of hunger in the winter time. The clear sober sense of the people
+recognized this fact, and all the farm houses of the peasants were
+without any appreciable injury to morality filled with unmarried
+servants of both sexes who were, indeed, supplied with clothes and food
+but who at the same time were indolent and incapable of
+advancement.[247-3] Where a nation's economy is rapidly advancing, there
+is no necessity why the most natural and when properly directed the most
+beneficent human impulse should be sacrificed to a higher average
+duration of life. But if this must be, when the distribution of the
+national resources is pretty nearly equal, it is not so much the number
+of marriages as the average fruitfulness of marriages that will
+diminish; that is as many persons as before may enter the married state
+but most of them are obliged either to postpone doing so until a later
+age, which places a greater interval between generation and generation,
+and causes the number of those living at any one time to decrease; or
+they cease to procreate children at an earlier period in their married
+life. The latter is found especially in France.[247-4] [247-5] But, on
+the other hand, where the distribution of the national resources is very
+unequal, the rich may afterwards as well as before continue to follow
+out their inclination to marry at as early a day and age as they wish;
+but the less fortunate must remain unmarried through life. Here,
+therefore, the average number of children to a marriage does not
+diminish; but the aggregate number of marriages does.[247-6] If the
+relative frequency of marriages in most European countries has
+diminished during the last century, the cause has been in part directly
+the long duration of life of married couples. Hence, we are not always
+warranted in consequence, to infer a diminished number of existing
+marriages.[247-7]
+
+In many countries, it has been recently observed that the average number
+of persons to a family is a decreasing one. Thus for, instance, in 1840,
+in Holland, there were to every hundred families 497 persons, in 1850,
+only 481; in Saxony, in 1832, 460; in 1840, only 443; in Bavaria, in
+1827, 480, in 1846, only 448. In cities also the average size of
+families is usually smaller than in the country.[247-8] This is
+intimately connected with this other fact that in the higher stages of
+civilization a larger number of independent households consists of
+single persons in contradistinction to married couples.[247-9] [247-10]
+
+     [Footnote 247-1: In France there was one child born alive,
+
+          In 1801-1805, on every 30.9 living.
+          In 1806-1810,  "       31.6   "
+          In 1811-1815,  "       41.5   "
+          In 1816-1820,  "       31.6   "
+          In 1821-1825,  "       32.1   "
+          In 1826-1830,  "       33.0   "
+          In 1831-1836,  "       34.0   "
+          In 1846-1850,  "       37.8   "
+          In 1851-1854,  "       37.88  "
+          In 1860-1864,  "       37.56  "]
+
+     [Footnote 247-2: _Malthus_, Principle of Population, II, ch.
+     1. In Denmark, at the same time, 1 in 37 and 114.
+     (_Thaarup_, D�nische Statistik., II, 1, 4.)]
+
+     [Footnote 247-3: In modern times, the intellectual and legal
+     conditions which existed in Norway have been loosened to a
+     great extent, and population in that country has, in
+     consequence, made rapid advances. In 1769 the population was
+     only 723,000; in 1855, it was 1,490,000. But the above
+     customs for the most part continue still. Between 1831 and
+     1835, there was one marriage a year for every 138 living
+     persons. The relative number of marriages is smaller than
+     before. In 1769, there were, in every 1,000,376 married
+     persons; in 1801, 347; in 1825, 345; in 1835, 322. In 1805,
+     there were only 63 illegitimate births to every 1,000
+     births; in 1835, the proportion was 71.5 in every 1,000.
+     (_Blom_, Statistik Con N., II, 168, 173.)]
+
+     [Footnote 247-4: In England, there were, in 1838-47, of
+     every 1,000 contracting marriage, 94 who had not yet
+     completed their 21st year; in Belgium, 1840-50, only 54; but
+     the famine year, 1846-47, noticeably lowered the relative
+     number of minors in both countries. There were married--
+
+     Column Head Key:  A - _In Belgium 1841-50._
+                       B - _In the purely Flemish provinces._
+                       C - _In the purely Wallonic provinces.
+                       D - _Sweden 1831-35._
+     ==============================================================
+                  |   A   |   B   |   C   |             D
+     -------------+-------+-------+-------+------------------------
+                  |  per  |  per  |  per  |
+                  | 1,000 | 1,000 | 1,000 |
+     Before their
+       21st year  |   56  |   32  |   74  |{ 359 per 1,000 males.
+     From 22 to   |       |       |       |{
+       25 years   |  219  |  181  |  259  |{ 463 per 1,000 females.
+
+     From 26 to   |       |       |       |{458 males, 387 females,
+       35 years   |  503  |  511  |  490  |{   per 1,000.
+
+     From 36 to   |       |       |       |
+       45 years   |  161  |  191  |  129  |{ 183 per 1,000 males.
+     After their  |       |       |       |{
+       45th year  |   61  |   75  |   48  |{ 150 per 1,000 females.
+     ==============================================================
+
+     But it must not be overlooked here, that the Flemish
+     provinces of Belgium had been for a long time in a sad
+     economic condition. (_Horn_, Studien, I, 75 ff.) No less
+     characteristic of the well-being of a people and their
+     providence in entering into the married state is the
+     relative age at which they contract marriage. If we divide
+     ages into four classes (up to the 30th year, between 31 and
+     45, between 46 and 60, and after 60), we find, for instance,
+     that from 1841 to 1845, there were in West Flanders 585 per
+     1,000 marriages between persons of the same age-class, 305
+     in which the husband, and 110 in which the wife belonged to
+     an older class; in Namur, on the other hand, 683, 234 and
+     83. In dear years, the relative number of marriages between
+     persons belonging to different age-classes, and the relative
+     difference in age of parties to the marriage contract
+     increases.
+
+     And so, the frequency of second marriages of widows and
+     widowers is no favorable symptom of the facility of founding
+     a family. Naturally every woman prefers a man who was never
+     married before to a widower; and every man a maiden to a
+     widow; but where there is a want of room to establish a new
+     household, the possession of such one by a widower may
+     readily preponderate over all counter considerations. Thus,
+     for instance, in the Flemish provinces of Belgium, of 1,000
+     widowers, from 365 to 395 marry again; in the Wallonic, only
+     from 293 to 308. Of 1,000 brides, 98 are widows in West
+     Flanders, and in Namur, 41. A similar proportion in Bavaria
+     between the Palatinate and the hither-districts. (_Hermann_,
+     Bewegung der Bev�lkerung in Bayern, p. 14.) The less the
+     frequency of marriage in general, the greater is the
+     relative probability of second marriage for widows and
+     widowers; and hence, in years of scarcity, the latter
+     relatively increase. (_Horn_, Studien, I, 201 ff.) Sometimes
+     this increase is absolute: in Austria, during the cheap year
+     1852, there were 231,900 marriages between persons never
+     before married, and 85,000 in which at least one of the
+     contracting parties had been married before. On the other
+     hand, during the dear year 1855, there were only 156,000 of
+     the former and 89,000 of the latter. Something analogous,
+     observed in antiquity. (_Pausan._, II, 21, 8; X, 38, 6;
+     _Propert._, II, 11, 36.) _Tacitus_, Germ., 19, describes the
+     moral feelings of the ancient Germans as averse to the
+     second marriage of widows, and he apparently approves it.]
+
+     [Footnote 247-5: In 19 European countries, with an aggregate
+     population of 121,000,000, the number of the married
+     amounted to an average of 34.88 per cent. of the whole
+     population. France is at the head with 38.94 per cent.
+     (1866), even 40.5. In these countries, of all adults, there
+     is a percentage of 65.98 who marry. France is here, also, at
+     the head, with a percentage of 73.58. And the number of the
+     unmarried has continually decreased in post-revolutionary
+     France. In 1806, there were only 35.84 per cent. of the
+     population married. (_Wapp�us_, A. Bev�lk erungsstatistik,
+     II, 219, 223, 229.) In relation also to the frequency of
+     first marriages and of marriage at the proper age, France is
+     the best situated country. (_Haushofer_, Lehr- und Handbuch
+     der Statistik, 40 ff.) But at the same time, in what
+     concerns the fruitfulness of marriage, it is the farthest
+     behind; and since 1780 prolificacy has continually decreased
+     there. Thus, 1800-1815, 3.93 legitimate children to a
+     marriage; 1856-60, only 3.03; 1861-6, again 3.08. (_Legoyt_
+     in the Journal des Econ. Oct. 1870, 28.) How little this
+     depends upon physiological causes may be inferred from the
+     fact that _Strabo_ commends the women of the Gallic race for
+     their peculiar adaptability to bearing and rearing children.
+     (IV, 178, 196.) The "prudential checks" must play a
+     principal part in producing a low birth rate. (Statist.
+     Journal, 1866, 262), as we find in France
+
+     ============================================================
+                   |  _Yearly per 100_      |
+                   |   _inhabitants._       | _Women who marry_
+         _In_      +------------------------+ _before their 25th_
+                   |_Marriages._| _Births._ | _year_.
+     --------------+------------+-----------+--------------------
+     Brittany,     |    7.0     |    29.8   |    42.7 per cent.
+     Adour,        |    6.9     |    25.0   |    47.3    "
+     Lower Garonne,|    8.3     |    22.0   |    59.7    "
+     Upper Seine   |    8.0     |    23.7   |    60.0    "
+     ============================================================
+
+     That, however, the shorter duration and smaller fruitfulness
+     of marriage by no means necessarily accompany one another,
+     France also proves, since it possesses the longer average
+     duration of marriage: 26.4 years against 20.7 in Prussia.
+     (_Wapp�us_, II, 311, 315.)]
+
+     [Footnote 247-6: The proportion of the married to the whole
+     population declined in Prussia from 35.09 in 1816, to 33.09
+     per cent. in 1852; in Sweden, from 36.41 in 1751 to 32.59
+     per cent. in 1855; in Norway, from 37.60 per cent. in 1769
+     to 32.21 per cent. in 1855; in Saxony, from 35.52 per cent.
+     in 1834, to 34.98 per cent. in 1849. (_Wapp�us_, II, 229.)
+     If all who are at least 20 years of age be considered
+     competent to marry, there are of every 1,000 thus competent
+     in Belgium, 520 actually married; in the Flemish provinces
+     alone, 489; in the most favorably situated Wallonic, 554.
+     (_Horn_, Bev�lk. Studien, I, 139 ff.) In Rome, under
+     Augustus, the proportion was much less satisfactory. In the
+     higher classes, a large majority did not marry at all.
+     (_Dio. Cass._, I, VI, 1.)]
+
+     [Footnote 247-7: In Halle, in 1700, there was one marriage
+     for every 77 of the population; in 1715, for every 99; in
+     1735, for every 140; in 1755, for every 167. In Leipzig, in
+     1620, there was one for every 82; 1741-1756, for every 118;
+     1868, for every 92.8. In Augsburg, 1510, one in 86; in 1610,
+     in 108; in 1660, in every 101; in 1750, in every 123. The
+     provinces of Magdeburg, Halberstadt, Cleve, Mark, Munden,
+     Brandenburg, Pomerania and Prussia had, about the end of the
+     seventeenth century, one marriage per annum for every 76-95
+     of the population; the Prussian monarchy, 1822-1828, one
+     marriage for every 109-121. Compare _Sussmilch_ G�ttl.
+     Ordnung, I., 131, ff., _Schubert_ Staatskunde des preuss.
+     Staates I., 364. In France, 1801-1805, there was one
+     marriage per annum in every 137 living; in 1821-5, for every
+     129; in 1831-35, for every 127; in 1842-51, for every
+     125.39; in 1860, for every 124.7.]
+
+     [Footnote 247-8: In Prussia, in 1849, there were in every
+     one hundred families in the cities, 492 individuals; in the
+     country, 512. In Belgium, in 1846, 459 and 497 respectively.
+     (_Horn_, Bev�lk. Studien, I, 88, ff.) In France, in 1853, in
+     the cities, 358; in Paris alone, 299. In the Zollverein, the
+     number of individuals in a family increased in 1852-55, 5.81
+     per cent.; the population only 3.02 per cent.; the
+     population of those over fourteen years of age, by 4.41 per
+     cent.; of minors by 1.02 per cent. Only in Saxony and the
+     cities of Hanover was the reverse the case. (_v. Viebahn_,
+     II, 278, seq.)]
+
+     [Footnote 247-9: Thus, for instance, in Belgium, for every
+     100 households, there are 74 marriages; in the cities of
+     Belgium, 70; in the Belgian country parishes, 75; in Prussia
+     in 1849, 84. (_Horn_, I, 93 seq.) It is estimated that in
+     Prussia, only 3 per cent. of the adult population live
+     outside of the family. (_Viebahn_, II, 273.)]
+
+     [Footnote 247-10: It is strange that _S�ssmilch_, G�ttl.
+     Ordnung, I, � 13, considers mortality an unalterable law,
+     while he fully recognizes the social grounds which caused
+     the frequency and prolificacy of marriages to vary (I, � 56,
+     99).]
+
+
+SECTION CCXLVIII.
+
+HISTORY OF POPULATION.--NUMBER OF BIRTHS AND DEATHS.
+
+So far as the mere number of the population is concerned, it is
+obviously a matter of indifference whether there are annually 1,000
+births and 800 deaths, or 2,000 births and 1,800 deaths. But we see in
+the former an element of higher civilization,[248-1] especially, on
+account of the conditions which determine it. It can occur only where
+even the most numerous, that is the lower class, feel other wants than
+those of the mere means of existence and of the satisfaction of the
+sexual instinct: wants, duties which probably could not be satisfied in
+a state of marriage thoughtlessly entered into; where the virtues both
+of foresight and self-control are very generally practiced.
+
+And then let us consider the consequences. The efficacy of the
+repressive hinderances to over-population either consists in immoral
+acts or easily leads to immorality. Until a "surplus" child has died,
+what a series of troubles for good parents, and what a chain of evil
+deeds for bad ones, to say nothing of the poor child itself.
+
+Further, every man, no matter how short or long his life, requires a
+large advance of capital and trouble which he has later to return to
+society through the activity of his riper years. If he dies before his
+maturity, this advance has been made in vain. The more, therefore, the
+population of a country, in order to maintain itself within the bounds
+of its field of food, has to calculate on the death of children, the
+greater is this loss.[248-2] Hence, from a national-economic point of
+view, it is to be considered a great advance, that in England in 1780,
+there was one death among its people under 20 years of age in every 76
+of the population, in 1801, in every 96, in 1830, in every 124, in 1833,
+one only in every 137. (_Porter._) Lastly, the longer the average
+duration of life of a child the greater, other circumstances remaining
+the same, the number of grown people as compared with that of the
+children; but grown people are, as a rule, independent, capable of
+self-defense, economically productive, competent to discharge all the
+rights and duties of citizenship, while children are dependent,
+incapable of self-defense, unproductive, immature. Only he who knows the
+relative numbers of the different age-classes of a nation can draw
+fruitful conclusions from the data per capita relating to taxation, from
+the statistics of crime, suicides, illegitimate births, of
+school-children, etc., or judge correctly of a locality's military
+contingent.[248-3] [248-4] Here, indeed, it should not be overlooked that
+in the highest age-classes, human beings return in many respects to the
+helplessness of childhood. Yet, as a rule, to reach a good old age is
+generally considered a personal good fortune; and the existence of a
+great many aged persons in a country, if not in itself an advantageous
+element in its economy, may, nevertheless, be called a pleasing
+symptom.[248-5] On an average there is only one person over sixty to
+every twelve under fifteen years of age. (_J. G. Hoffmann._) We may,
+hence, readily measure what an advantage France possesses in this, that
+in 1861, in every 1,000 inhabitants, only 273 were under fifteen years
+of age, 524 between sixteen and fifty, the most vigorous years of life,
+and 203 over fifty years old. The average age of the French population
+was 31.06 years against 27.22 in Sardinia and 25.32 in Ireland.
+
+However, a positively unfavorable conclusion from a relatively large
+number of children in a nation should not be drawn except in the case of
+a people the limits of whose field of food cannot be extended. (� 239.)
+Where the nation's economy has a rapid growth, as for instance in young
+colonies, the comparatively easy rearing of children which there
+obtains, without any corresponding mortality, is not so much considered
+a burthen[248-6] as a symptom of their good fortune and even a positive
+good.[248-7] On the other hand, of the Belgian provinces, for instance,
+suffering Flanders had relatively the smallest number of children,
+because it had the largest child-mortality.[248-8]
+
+Almost all the signs which, according to the above paragraphs,
+distinguish a higher stage of civilization from a lower, may be shown
+within the limits of the same age and nation to characterize the upper
+classes as compared with the lower. We may even claim that the greater
+foresight and self-control of the former in the matter of marriage and
+in the procreation of children, since the abolition of the greater
+number of legal advantages of class, are by far the most important of
+the elements constituting their superiority over the latter. The word
+proletariat, from _proles_, means first of all, having many children
+(_Vielkinderei_)!
+
+     [Footnote 248-1: _J. M�ser_ did not even dream of this.
+     Patr. Phant., I, 15.]
+
+     [Footnote 248-2: _Rossi_, Cours d'Economie politique, I,
+     371, estimates the cost of bringing up a child to its 16th
+     year at a minimum of 1,000 francs. Hence, a country with
+     1,000,000 births annually, in which only 50 per cent. reach
+     that age, would lose 500,000,000 francs per annum. However,
+     over one-third of the children in question die in the first
+     years of childhood, and the rest do not reach on an average
+     their 16th year, but die between the age of 7 and 8:
+     _Bernouilli_, Populationistik, 259. _Engel_ estimates
+     Saxony's "man-capital" at 4 times the value of all the land
+     in the country, and at 10 times the value of all movable
+     property. (S�chs., Statist. Zeitschr., 1855, No. 9. Preuss.
+     Statist. Zeitschr., 1861, 324.) One of the chief advocates
+     of the view that there is an investment of capital in every
+     child is _Chadwick_ in the opening address delivered by him
+     before an English learned society at Cambridge: Statist.
+     Journal, Dec., 1862. Lancashire alone pays a penalty per
+     annum for preventable deaths of �4,000,000, for the funeral
+     and medical expenses; to say nothing of the capital lost
+     (506).]
+
+     [Footnote 248-3: _Bernouilli_, Populationistik, 51 ff.
+     _Quetelet_, Recherches statist. sur le Royaume des Pays-Bas,
+     1827, 1, 9, and Du Syst�me social, 1848, 176 ff., specially
+     called attention to the important differences in this
+     relation, between the productive and unproductive years of
+     life. Thus it should not be forgotten, when reading of the
+     greater mortality of the poor quarters of Paris, that
+     strangers who are for the most part in the vigorous years of
+     life, live there least of all.]
+
+     [Footnote 248-4: In Russia, it seems that only 36 per cent.
+     of all those born outlive their 20th year; in England, 55
+     per cent. (_Porter_, Progress, ch. I, 29.) The Russian
+     peasants are said to have from 10 to 12 children, only about
+     one-third of whom grow to maturity, (_v. Haxthausen_, I,
+     128.) In the United States, the population was in 1820
+     divided into two nearly equal parts as to age, the 16th year
+     of age forming the dividing point; in England the same was
+     the case, only the dividing point was 20 years of age.
+     (_Tucker_, Progress of the United States, 16, 63.)]
+
+     [Footnote 248-5: There were in
+
+     ---------------------------------------------------------------
+                   |_Years._|_From 0 to_ |_From 16 to_ | _Over 50_
+                   |        | _15 years_ |  _50 years_ |  _years_
+                   |        | _of age._  |  _of age._  | _of age._
+     ---------------------------------------------------------------
+                   |        |  Per 1,000 |  Per 1,000  |  Per 1,000
+                   |        | of the pop.| of the pop. | of the pop.
+                   |        |            |             |
+     Belgium,      |  1846  |    323     |     509     |     168
+     Prussia,      |  1849  |    370     |     504     |     126
+     Great Britain,|  1851  |    354     |     504     |     142
+     Holland,      |  1849  |    333     |     509     |     158
+     Saxony,       |  1840  |    339     |     505     |     156
+     Sweden,       |  1850  |    328     |     511     |     161
+     ---------------------------------------------------------------
+
+     In Great Britain, the census of 1851 gave 596,030 persons
+     over 70 years of age; 9,847, over 90; 2,038, over 95; 319,
+     over 100 years of age. (Athen., 12 Aug., 1854.) In France,
+     in 1851, there were 1,319,960 persons seventy years of age
+     and over. In the United States the population of--
+
+     ----------------------------------------------------------------
+                             |  _Per English_ | _Relative number of
+                             | _square mile._ | _children under ten
+                             |                | _years._
+     ----------------------------------------------------------------
+                             |  1800 |  1840  |    1800   |   1840
+     ------------------------|---------------------------------------
+                             |       |        | per cent. | per cent.
+     New England,            | 19.2  |  34.8  |    63.5   |  51.1
+     The Middle States,      | 15.3  |  43.6  |    70.7   |  55.7
+     The Southern States,    |  8.9  |  15.9  |    73.0   |  67.8
+     The Southwestern States,|  1.3  |  13.7  |    77.6   |  75.5
+     The Northwestern States,|  2.3  |  25.5  |    84.9   |  73.8
+     ----------------------------------------------------------------
+
+     In the whole Union, in 1830, the age classes up to 20 years
+     embraced 56.12 per cent. of the population; in 1840, 54.62
+     per cent; in 1850, 51.85 per cent. Compare _Horn_, Bev�lk.
+     Studien, I, 126; _Wapp�us_, A. Bev�lk. Stat., II, 44, 125
+     ff., 88; _Tucker_, Progress of the United States, 105.]
+
+     [Footnote 248-6: As _Wapp�us_ says that in America an equal
+     number of adults must work for at least a third larger
+     number of children than in Europe: "a much more unfavorable
+     situation, so far as production-force is concerned." (A.
+     Bev�lk. St., II, 44.)]
+
+     [Footnote 248-7: _Horn_, I, 127 ff. The Becoming is not only
+     more pleasant than the Having become, but it may even stand
+     higher in so far as the latter consists only in being
+     resigned to further development.]
+
+     [Footnote 248-8: _Les mendiants sont dans le cas des peuples
+     naissants_ etc. _Montesquieu_, E. der Lois, LXXIII, 11. In
+     England and Wales in 1851-60, there died yearly before their
+     sixth year, 7.24 per cent. of all male children born, but in
+     the families of peers, only 2.22 per cent. (Stat. Journal,
+     Sept., 1865.) If we grade the quarters of the city of Berlin
+     according to the well-being of their inhabitants, we find
+     that in the lower, the number of married men between 18 and
+     25 years is successively greater 1.1, 1.4, 2.4 and 3.4 per
+     cent. (_Schwabe_, V�lksz�hlung von, 1871, 24.)]
+
+
+SECTION CCXLIX.
+
+HISTORY OF POPULATION.--IN PERIODS OF DECLINE.
+
+Nations involved in political and religious decline are wont to lose the
+moral foundation of the situation last described. Here, therefore,
+again, both the repressive (which are almost always immoral) tendencies
+counter to over-population, and the viciously preventive occupy the most
+prominent place. We may most completely observe this spectacle among the
+heathen nations of later antiquity. But, unfortunately, even among
+modern nations, we find some analogies to the ancient, to which the
+political economist may point with the finger of warning. "For unto
+every one that hath shall be given, and he shall have abundance; but
+from him that hath not shall be taken away even that which he hath."
+This universally applicable truth explains the fact that all successive
+acts of immorality, the more frequently they occur the less severely are
+they branded by public opinion.
+
+A. We are not warranted, from the relative[249-1] number of illegitimate
+births, to draw too direct an inference in relation to the morality of a
+people. Where, for instance, as in the kingdom of Saxony, the annual
+frequency of marriage was 0.017 of the population, every illegitimate
+birth bears evidence of a greater absence of self control than in
+Bavaria, where, on every one thousand living, there were only thirteen
+marriages a year.[249-2] In many quarters, where the economic relations
+are very stable, and where peasant estates (_geschlossene Bauerg�ter_)
+are subject to a species of entailing, where consequently the son can
+engage in marriage only after the death of the father, illegitimate
+children are in great part legitimatized by subsequent marriage at a
+later time, and meanwhile brought up in the family of the mother like
+legitimate children.[249-3] Evidently the guilty inconstancy creative of
+ephemeral _liaisons_, and the neglect of the children born of them, do
+not here produce the sad effects which they are wont to in the large
+cities, where illegitimate relations are made and dissolved with
+shocking rapidity. However, births are seldom heard of in the case of
+ruined debauchees.
+
+At the same time, the frequency of illegitimate births is always an
+evidence that the rightful founding of a home is made difficult[249-4]
+by the economic condition of the police provisions of a country; and
+that the moral force of the people does not suffice to resist the
+temptation[249-5] which such condition and provisions suppose. In the
+latter respect, this phenomenon may be considered, not only as a symptom
+but also as a cause: since bastards are generally very badly brought up.
+A large parthenic population is always an element of great danger in a
+state.[249-6] The frequency of illegitimate children must, however, be
+designated as a tendency counter to over-population, for the reason that
+still-born births and early deaths occur much more frequently among them
+than among legitimate children.[249-7]
+
+B. The trade of the women of the town is indeed an exceedingly old
+one.[249-8] But this evil assumes large dimensions only where a large
+class of men and women have no prospect to marry at all, or only late in
+life; especially when, at the same time, families have become
+unaccustomed to keeping together for life.[249-9] Prostitution may be
+considered a counterpoise to over-population, not only because of the
+polyandry it involves, but also of the infecundity of its
+victims.[249-10] Even the diseases which it propagates are not without
+importance in this regard. The love of change and impatience of
+restraint which it produces keeps many a man who, economically
+considered, might very well engage in marriage, in a state of criminal
+celibacy.[249-11] This moral poisoning of the nation's blood is more
+pernicious in proportion as vice is decked with the charms of
+intellect,[249-12] and reflected in literature and art.[249-13] When
+Phryne had wealth enough to project the rebuilding of Thebes, and
+boldness enough to ask to be allowed to put this inscription on its
+walls: "Alexander destroyed them, but Phryne, the het�ra, rebuilt them,"
+not only the dignity but the nationality of Greece was gasping for the
+last time for breath.[249-14] [249-15]
+
+C. I know no sadder picture in all history than the wide diffusion and
+even sovereignty which unnatural vice possessed among the declining
+nations of antiquity. Egypt and Syria seem to have been the original
+seat of this moral plague.[249-16] In Greece, there was a time noted for
+the brilliancy of its literature and art, when the poetic fancy, in its
+dreams of love, pictured to itself only the forms of beautiful boys; and
+that this love was generally an impure one, there is, unfortunately, no
+room to doubt.[249-17] In more ancient Rome, it was most severely
+punished;[249-18] but afterwards, again, it seemed reprehensible to a
+Tibullus only when it was bought with money.[249-19] Even under C�sar, a
+censor could threaten an �dile with a charge of sodomy; the latter
+reciprocate the threat, and think it witty to invite a man like Cicero
+to assist at the curious argument which such a case might call forth,
+before a pretor with a reputation of being guilty of the same
+vice.[249-20] When the horrible deeds of which Tiberius was guilty are
+known, we cannot consider them capable of exaggeration. But Tiberius, at
+least, sought secrecy, while Nero, Commodus and Heliogabalus felt a
+special delight in the publicity of their shame.[249-21] [249-22] [249-23]
+
+     [Footnote 249-1: The ratio between the number of
+     illegitimate births and legitimate, so generally brought
+     forward, leads to no correct conclusions whatever. The ratio
+     between the number of illegitimate births, on the other
+     hand, and marriageable men and women, especially of those
+     who are yet unmarried, may afford a basis for valuable
+     inferences. Compare _Hoffmann_, in the Preuss.
+     Staatszeitung, 1837, No. 18. In Prussia, nearly 75 per cent.
+     of all women between 17 and 75 are married. (_v. Viehbahn_,
+     II, 189.)]
+
+     [Footnote 249-2: In Bavaria, not only was the frequency of
+     marriage surprisingly small (one marriage a year in every
+     151.59 inhabitants, while the average in 14 European
+     countries was 1 in 123.9), but marriage was there contracted
+     at a surprisingly advanced age. Of 10,000 of both sexes
+     engaging in marriage, there were, in Bavaria, only 2,081 25
+     years of age and less, while in England, there were 5,528.
+     Compare _Wapp�us_, A. Bev�lk. Statistik, II, 241, 270.]
+
+     [Footnote 249-3: In Oldenburg, it is estimated that 48 per
+     cent. of its illegitimate children are legitimatized _per
+     subsequens matrimonium_ (_Rau-Hanssen_ Archiv. N. F., I, 7),
+     in the agricultural districts of Nassau even 70 per cent.
+     (_Faucher's_ Vierteljahrsschrift, 1864, II, 19), in the whole
+     of Bavaria, 15 per cent.; in the Palatinate, 29.7 per cent.
+     (_Hermann_, Bewegung der Bevolkerung, 20); in the Kingdom of
+     Saxony, 1865, at least 21 per cent. (Statist. Zeitschr.
+     1868, 184.) In France 10 per cent. of the marriages
+     contracted legitimatize children. (_Legoyt_, Stat. Comp.,
+     501); in Saxony, 1865, 11.7; in Bavaria up to 1852, about
+     1/8 of the marriages belonged to this category; 1858-61,
+     1/7; 1861-64, nearly 1/6. Compare Heft XII, of the official
+     statistics. In the manufacturing towns of France, especially
+     the border ones, a large number of the children of female
+     operatives and of males having their domicile in foreign
+     parts, are legitimatized by marriage: thus in M�hlhausen,
+     23.7 per cent. Recherches statist. sur M., 1843, 62.]
+
+     [Footnote 249-4: In Mecklenburg-Schwerin there was one
+     marriage
+                                 _1841._
+          On domanial lands, on every 137 of population.
+          On manor      "        "    145       "
+          On monastery  "        "    163       "
+          In the cities "        "    115       "
+                                 _1850._
+          On domanial lands, on every 149 of population.
+          On manor      "        "    269       "
+          On monastery  "        "    175       "
+          In the cities "        "    104       "
+
+     The number of illegitimate births stood to the aggregate
+     number of births in 1800, as 1:16; in 1851, as 1:4.5; in
+     1850-55, as 1:4.8; in 1856-59, as 1:5.04; in 1865, as 1:4.0;
+     in 1866, as 1:4.8; in 1867, as 1:5.33; in 1868, as 1:6.0; in
+     1869, as 1:7.2; in 1870, as 1:7.08, In 260 localities, in
+     1851, 1/3 and more of the aggregate number of births were
+     illegitimate; in 209, 1/2 and more, and in 79 the entire
+     number! The small improvement afterwards made was probably
+     due in great part to emigration, which from 1850 to 1859
+     must have amounted to 45,000. How relative the idea of
+     over-population even in this respect is, is shown by the
+     small number of illegitimate births in very densely
+     populated parts of England--Lancashire, Middlesex, Warwick,
+     Stafford, West York--while districts as thinly populated as
+     North York, Salop, Cumberland, Westmoreland, have very many
+     illegitimate births. The number increases in the best
+     educated districts, where their "education" begins to cause
+     them to make "prudent" and long delays in marrying.
+     (_Lumley_, Statistics of Illegitimacy: Statist. Journal,
+     1862.)]
+
+     [Footnote 249-5: Strikingly more favorable influence of the
+     _ecclesia pressa_. In Prussia, in 1855, the Evangelicals had
+     12.3 legitimate births for one illegitimate; the Catholics
+     19.4, the Jews 36.7, the Mennonites 211.5. (_v. Viebahn_,
+     II, 226.)]
+
+     [Footnote 249-6: The relative number of illegitimate births
+     in many nations of to-day is unfortunately an increasing
+     one. In France, in 1801, only 4.6 per cent. of all live
+     births were illegitimate; in 1811, 6.09; in 1821, 7.07; in
+     1830, 7.2; in 1857, 7.5; 1861-65, 7.56 per cent. The German
+     especially must confess with deep shame that the southern
+     half of the fatherland presents a very unfavorable picture
+     in this respect. Can a nation be free when its capital,
+     Vienna (1853-56), counts on an average 10,330 illegitimate
+     and 11,099 legitimate births? Compare _Stein-Wapp�us_,
+     Handbuch der Geogr., IV, 1, 193. According to observations
+     made between 1850 and 1860, in England between 1845 and
+     1860, there were in Holland for every 1,000 legitimate
+     births 44 illegitimate, in Spain 59, in England and Wales
+     71, in France 80, in Belgium 86, in Prussia 91, in Norway
+     96, in Sweden 96, in Austria 98, in Hanover 114, in Saxony
+     182, in Bavaria 279. (Statist. Journ., 1868, 153.) Compare
+     _Wapp�us_, A. Bev�lk. Stat., II, 387. In Russia, according
+     to _v. Lengefeld_, 36.9; in the electorate of Mark, 1724-31,
+     1 in 18. (_S�ssmilch_, I, � 239.) During the 17th century it
+     is estimated that the ratio of illegitimate to legitimate
+     births in Merseburg was as 1:22-30, in Quedlinburg as
+     1:23-24, in Erfurt as 1:13-1/2. (From the Kirchenb�cher in
+     _Tholuck's_ Kircliches Leben, etc., I, 315 seq.) In Berlin
+     in 1640, only 1-2 per cent. of illegitimate births.
+     (_K�nig_, Berlin, I, 235.) In Leipzig, 1696-1700, 3 per
+     cent.; 1861-65, 20 per cent. _Knapp_, Mitth. des. Leipz.
+     Statist. Bureaus, VI, p. X.]
+
+     [Footnote 249-7: Thus, in 1811-20, the still-born births in
+     Berlin, Breslau and K�nigsberg amounted to five per cent. of
+     the legitimate, and to eight per cent. of the illegitimate;
+     in the country places in Prussia, to 2-3/4 and 4-3/4 per
+     cent. Of 384 illegitimate children born in Stettin in 1864,
+     45 were still-born and 279 died in their first year. (_v.
+     Oettingen_, Moralstatistik, 879.) In the whole monarchy,
+     1857-58, three to 4 per cent. of legitimate children died at
+     birth, and 5 to 6 per cent. of the illegitimate; while
+     during the first year of their age 18-19 per cent. of the
+     former, and 34-36 per cent. of the latter, died (_v.
+     Viebahn_, II, 235). In France, in 1841-54, of the legitimate
+     births, an average of 4 per cent., and of illegitimate 7 per
+     cent., was still-born; and the probability of death during
+     the first year of life was 2.12 times as great for an
+     illegitimate child as for one born in lawful wedlock.
+     (_Legoyt._) After the first year the proportion changes.]
+
+     [Footnote 249-8: Genesis, 38; Joshua, 1, ff.; Judges, 16, 1,
+     ff. It must not here be overlooked that the Canaanites
+     possessed a much higher degree of economic culture than the
+     contemporary Jews. In Athens, Solon seems to have
+     established brothels to protect virtuous women. (_Athen._,
+     XIII, 59.) In France, as early a ruler as Charlemagne took
+     severe measures against prostitution. (_Delamarre_, Trait�
+     de Police, I, 489.) Compare L. Visigoth., III, 4, 17, 5.]
+
+     [Footnote 249-9: Travelers are wont to be the first to make
+     use of prostitution. I need only mention the extremely
+     licentious worship of Aphrodite (Aschera) which the
+     Phoenicians spread on every side: in Cypria, Cytherae, Eryx,
+     etc. Connected with this was the mercenary character of the
+     Babylonian women (_Herodot._, I, 199); similarly in Byblos
+     (_Lucian_, De dea Syria, 6); Eryx (_Strabo_, VI, 272:
+     _Diod._, IV, 83), in Cypria; (_Herodot._, I, 105, 199);
+     Cytheria (_Pausan._, I, 14); Athenian prostitutes in Pir�eus
+     and very early Ionian in Naucratis. (_Herodot._, II, 135.)
+     In all the oases on the grand highways of the caravans, the
+     women have a very bad reputation. Temporary marriages of
+     merchants in Yarkand, Augila, etc. (_Ritter_, Erdkunde, I,
+     999, 1011, 1013, II, 360; VII, 472; XIII, 414.) It is
+     remarkable how the legislation of German cities at the very
+     beginning of their rise was directed against male bawds and
+     prostitutes; at times with great severity, the death penalty
+     being provided for against the former and exile against the
+     latter, while the earlier legislation of the people was
+     directed only against rape. (_Spittler_, Gesch. Hannovers,
+     I, 57 ff.)]
+
+     [Footnote 249-10: Conception in the case of women of the
+     town is indeed not a thing unheard of, but abortion
+     generally takes place or is produced; their confinement is
+     extremely dangerous, and nearly all the children born of
+     them die in the first year of their life. (_Parent Du
+     Ch�telet_, Prostitution de Paris, 1836, I, ch. 3.)]
+
+     [Footnote 249-11: In the time of Demosthenes, even the more
+     rigid were wont to say that people kept het�ras for
+     pleasure, concubines to take better care of them, wives for
+     the procreation of children and as housekeepers. (adv.
+     Ne�ram., 1386.)]
+
+     [Footnote 249-12: In Greece as well as in Rome, only slaves,
+     freedmen and strangers sold their bodies for hire; but under
+     the Emperors, prostitution ascended even into the higher
+     classes. (_Tacit._, Ann. II, 85; _Sueton._, Tiber, 35;
+     _Calig._,41; _Martial_, IV, 81.) Concerning the Empress
+     Messalina, see _Juvenal_, VI, 117 ff. Address of
+     Heliogabalus to the assembled courtesans of the capital,
+     whom the Emperor harrangued as _commilitones_. (_Lamprid_,
+     V.; Heliogabali, 26.) In Cicero's time, even a man of such
+     exalted position as M. Coelius was paid for cohabitation
+     with Clodia, and even moved into her house. (_Drumann_,
+     Gesch. Roms., II, 377.) Even in Socrates' time, the het�ras
+     at Athens were probably better educated than wives: Compare
+     _Xenophon_, Memorabilia, III, 11.]
+
+     [Footnote 249-13: On the Pornographs of antiquity, see
+     _Athen._, XIII, 21. Even _Aristophanes_ was acquainted with
+     some of the species. (Ran�, 13, 10 ff.) Compare _Aristot._,
+     Polit., III, 17. _Martial_, XII, 43, 96. Of modern nations,
+     Italy seems to have been the first to produce such poison
+     flowers: _Antonius Panormita_ (ob. 1471); _Petrus Aretinus_
+     (ob. 1556). Of the disastrous influence on morals, during
+     his time, of obscene pictures, _Propert_, II, 5, complains.
+     It is dreadfully characteristic that even a Parrhasios
+     painted wanton deeds of shame. (_Sueton._, Tiber, 44), and
+     that Praxiteles did not disdain to glorify the triumph of a
+     _meretrix gaudens_ over a _flens matrona_. (_Plin._, H. N.,
+     XXXIV, 19.) But indeed also Giulio Romano!]
+
+     [Footnote 249-14: Compare _Jacobs'_ Vermischte Schriften,
+     IV, 311 ff.: _Murr_, Die Mediceische Venus und Phryne,
+     1804.]
+
+     [Footnote 249-15: The number of registered prostitutes in
+     Paris, in 1832, amounted to 3,558; in 1854, to 4,620
+     (_Parent Du Ch�telet_, ch. 1, 2); in 1870, to 3,656. These
+     figures are evidently much below the real ones. Compare the
+     extracts from the abundant, but, in particulars, very
+     unreliable literature on the great sin of great cities, in
+     _v. Oettingen_, Moralstatistik, 452 ff. According to the
+     Journal des Econ., Juin, 1870, 378 ff., there was an
+     aggregate of 120,000 _femmes, qui ne vivent que de
+     galanterie_.]
+
+     [Footnote 249-16: _Nequitias tellus scit dare nulla magis_,
+     says _Martial_, of Egypt. Worship of Isis, in Rome:
+     _Juvenal_, VI, 488 ff. See, further, _Herodot._, II, 46, 89;
+     _Strabo_, XVII, 802. On Syria, see Genesis, 19, 4 ff., 9
+     seq.; Leviticus, 18, 22 seq., 20, 13, 15. The _cunnilingere_
+     of Phoenician origin. (_Heysch_, _v._ skylax.) Frightful
+     frequency of the _fellare_ and _irrumare_ in Tarsis: _Dio
+     Chrysost._, Orat, 33. The Scythians also seem to have
+     learned the nousos th�leia (pederasty?) in Syria:
+     _Herodot._, I, 105. Similarly during the crusades.]
+
+     [Footnote 249-17: Compare _Becker_, Charicles, I, 347 ff.
+     _�schines_ condemns this vice only when one prostitutes
+     himself for money (in Timarch., 137). _Lysias_, adv. Simon,
+     unhesitatingly speaks to a court about a contract for hire
+     for purposes of pederasty. Compare _�schin._, l. c., 159,
+     119, where such a contract is formally sued on. Industrial
+     tax on pederastic brothels. (_�schin._. I, c. R.)
+     _Aristophanes_ alludes to obscenity still more shameful:
+     Equitt., 280 ff.; Vespp., 1274 ff., 1347; Pax., 885; Ran�,
+     1349.]
+
+     [Footnote 249-18: _Valer. Max._, VI, 1, 7, 9 ff. The Lex
+     Julia treats it only as _stuprum_: L. 34, � 1. Digest, 48,
+     5; Paulli Sentt. receptt., II, 26, 13. Permitted later until
+     Philip's time, in consideration of a license-fee. _Aurel.
+     Vict._, Caes., 28. Earliest traces of this vice in the year
+     321 before Christ. (_Suidas_, v. Gaios Lait�rios.) Later, it
+     caused much scandal when the great Marcellus accused the
+     �dile Scatinus of making shameful advances to his son.
+     (_Plutarch_, Marcell., 2.)]
+
+     [Footnote 249-19: _Tibull_, I, 4. Even the "severe"
+     _Juvenal_ was not entirely disinclined to pederasty, and
+     _Martial_ does not hesitate to boast of his own pederasty
+     and onanism. (II, 43, XI, 43, 58, 73, XII, 97.)]
+
+     [Footnote 249-20: _Cicero_, ad. Div., VIII, 12, 14.]
+
+     [Footnote 249-21: _Sueton._, Tiber, 43 ff.; Nero, 27 ff.
+     _Tacit._, Ann., VI, 1; Lamprid. Commod., 5, 10 seq.; Heliog.
+     passim. On the _greges exoletorum_, see also _Dio Cass._,
+     LXII, 28; LXIII, 13; _Tacit._, Ann., XV, 37. _Tatian_, ad
+     Graecos, p. 100. Even Trajan, the best of the Roman
+     emperors, held similar ones. (Ael. Spartian, V, Hadr., 2.)
+     Trade in the prostitution of children at the breast.
+     (_Martial_, IX, 9.) The collection of nearly all the obscene
+     passages in the ancient classics elucidated with a shameful
+     knowledge of the subject in the additions to _F. C.
+     Forberg's_ edition of the Hermaphroditus of _Antonius
+     Panormita_, 1824.]
+
+     [Footnote 249-22: How long this moral corruption lasted may
+     be inferred from the glaring contrast between the purity of
+     the Vandals at the time of the migration of nations. Compare
+     _Salvian_, De Gubern. Dei, VII, passim.]
+
+     [Footnote 249-23: In keeping with the vicious counter
+     tendencies described in this section, is the increasing
+     frequency of the rape of children in France. The average
+     number of cases between 1826 and 1830 was 136; between 1841
+     and 1845, 346; between 1856 and 1859, 692. Infanticide also
+     increased between 1826 and 1860, 119 per cent. (_Legoyt_,
+     Stat. compar�e, 394.)]
+
+
+SECTION CCL.
+
+INFLUENCE OF THE PROFANATION OF MARRIAGE ON POPULATION.
+
+D. In the preceding paragraphs, we treated of the wild shoots of the
+tree of population. But the roots of the tree are still more directly
+attacked by all those influences which diminish the sacredness of the
+marriage bond. It is obvious how heartless _marriages de
+convenance_,[250-1] inconsiderate divorces and frequent adulteries
+mutually promote one another. And the period of Roman decline also is
+the classic period of this evil. I need only cite the political
+speculation in which Caesar gave his only daughter to the much older
+Pompey, or the case of Octavia, who when pregnant was compelled to marry
+the libertine Antonius.[250-2] Instead of the Lucretias and Virginias of
+older and better times, we now find women of whom it was said: _non
+consulum numero, sed maritorum annos suos computant_.[250-3] In the
+numerous class of young people who live without the prospect of any
+married happiness of their own, we find a multitude of dangerous persons
+who ruin the married happiness of others, especially where marriage has
+been contracted between persons too widely separated by years.
+_Corrumpere et corrumpi s�culum vocatur._ (_Tacitus_).[250-4] It is easy
+to understand how all this must have diminished the desire of men to
+marry. Even Metellus Macedonicus (131 before Christ) had declared
+marriage to be a necessary evil.[250-5] [250-6]
+
+In such ages young girls are kept subject to a convent-like discipline,
+that their reputation may be protected and that they may be able to get
+husbands; but once married they are wont to be all the more lawless. In
+a pure moral atmosphere, precisely the opposite course obtains.[250-7]
+
+And so it has been frequently observed, that among declining nations the
+social differences between the two sexes are first obliterated and
+afterwards even the intellectual differences. The more masculine the
+women become, the more effeminate become the men. It is no good symptom
+when there are almost as many female writers and female rulers as there
+are male. Such was the case, for instance, in the Hellenistic kingdoms,
+and in the age of the C�sars.[250-8] What to-day is called by many the
+emancipation of woman would ultimately end in the dissolution of the
+family, and, if carried out, render poor service to the majority of
+women. If man and woman were placed entirely on the same level, and if
+in the competition between the two sexes nothing but an actual
+superiority should decide, it is to be feared that woman would soon be
+relegated to a condition as hard as that in which she is found among all
+barbarous nations. It is precisely family life and higher civilization
+that have emancipated woman. Those theorizers who, led astray by the
+dark side of higher civilization, preach a community of goods, generally
+contemplate in their simultaneous recommendation of the emancipation of
+woman a more or less developed form of a community of wives. The grounds
+of the two institutions are very similar. The use of property and
+marriage is condemned because there is evidence of so much abuse of
+both. Men despair of making the advantages that accompany them
+accessible to all, and hence would refuse them to every one; they would
+improve the world without asking men to make a sacrifice of their evil
+desires. The result, also, would be about the same in both cases. (�
+81.) So far would prostitution and illegitimacy be from disappearing
+that every woman would be a woman of the town and every child a bastard.
+There would, indeed, be a frightful hinderance under such circumstances
+to the increase of population. The whole world would be, so to speak,
+one vast foundling asylum.[250-9]
+
+But there is another sense to the expression emancipation of woman. It
+should not be ignored that, in fully peopled countries, there is urgent
+need of a certain reform in the social condition of woman. The less the
+probability of marriage for a large part of the young women of a country
+becomes, the more uncertain the refuge which home with its slackened
+bonds offers them for old age, the more readily should the legal or
+traditional barriers which exclude women from so many callings to which
+they are naturally adapted be done away with.[250-10] This is only a
+continuation of the course of things which has led to the abolition of
+the old guardianship of the sex. It may be unavoidable not to go much
+farther sometimes; but such a necessity is a lamentable one.[250-11] The
+best division of labor is that which makes the woman the glory of her
+household, only it is unfortunately frequently impossible.
+
+     [Footnote 250-1: This expression is applicable only in times
+     of higher civilization where individual disposition of self
+     is considered the most essential want. During the middle
+     ages, when the family tie is yet so strong, the contract of
+     marriage was generally formed by the family; but this was
+     not, as a rule, felt a restraint. In France, at the present
+     time, of 1,000 men who marry before their 20th year, 30.8
+     marry women from 35 to 50 years of age, and 4.8 who marry
+     women over 50 years of age. (_Wapp�us_, A. Bev�lkerung.
+     Stat. II, 291.)]
+
+     [Footnote 250-2: _Propertius_ bitterly complains of the
+     corruption prevalent in love affairs in his time. (III, 12.)
+     In the Hellenic world, also, among the successors of
+     Alexander the Great, there was a revoltingly large number of
+     _marriages de convenance_, so that even the old Seleucos
+     took to wife the grand-daughter of his competitor Antegonos,
+     Lysimachos the daughter of Ptolemy etc. _Dante's_ lament
+     over the anxiety of fathers to whom daughters are born
+     concerning their future dowry: Paradiso, XV, 103. Florentine
+     law of 1509, against large dowries: _Machiavelli_, Lett.
+     fam., 60. In the United States, marriage dowries are of
+     little importance. (_Graf G�rtz_, Reise um die Welt, 116.)
+
+     [Footnote 250-3: _Seneca_, de Benef., III, 16--a frightful
+     chapter. Also, I, 9. _Juvenal_ speaks of ladies who in five
+     years had married eight men (IV, 229, seq.), and _Jerome_
+     saw a woman buried by her 23d husband, who himself had had
+     21 wives, one after another, (ad. Ageruch, I, 908.) The
+     first instance of a formal divorce _diffareatio_ is said to
+     have occurred in the year 523, after the building of the
+     city (_Gellius_, IV, 3), a clear proof that the Romulian
+     description of marriage, as koin�nia hapant�n hier�n kai
+     chr�mat�n (Dionys., A. R. II., 25), was long a true one. The
+     old manus-marriage certainly supposes great confidence of
+     the wife and her parents in the fidelity of the husband,
+     while the marriage law of the time of the emperors relating
+     to estates never lost sight of the possibility of divorce.
+     The facility of obtaining amicable divorces (the most
+     dangerous of all) appears from the gifts allowed, _divorti
+     causa_, in L., 11, 12, 13, 60, 61, 62; Dig., XXIV, 1. In
+     Greece, we meet with the characteristic contrast, that, in
+     earlier times, wives were bought, but that later, large
+     dowries had to be insured to them or the risk of divorce at
+     pleasure be assumed. (_Hermann_, Privataltherth�mer, � 30.)
+     How women themselves married again, even on the day of their
+     divorce, see _Demosth._, adv. Onet., 873; adv. Eubul., 1311.
+     On Palestine, see Gospel of _John_, 4, 17 ff. Concerning
+     present Egypt, where prostitution is carried on especially
+     by cast-off wives, see _Wachenhusen_, vom �gypt, armen Mann,
+     II, 139. During the great French revolution, divorces were
+     so easily obtained that but little was wanted to make a
+     community of wives. (Vierzig B�cher, IV, 205; Handbuch des
+     franz�sischen Civilrechts, � 450.) The more divorces there
+     are in a Prussian province, the more illegitimate births
+     also. Thus, for instance, Brandenburg, 1860-64, had 1,721
+     divorces, and one illegitimate birth for every 7.8
+     legitimate (max.). Rhenish Prussia, four divorces and one
+     illegitimate birth for every 25.4 legitimate (min.). In the
+     cities of Saxony, it is estimated there are, for every
+     10,000 inhabitants, 36 divorced persons; in the country,
+     only 19 (_Haushofer_, Statistik, 487 seq.); in W�rttemberg,
+     20; Thuringia, 33; all Prussia, 19; Berlin, 83. (_Schwabe_,
+     Volksz�hlung von, 1867 p. XLV.)]
+
+     [Footnote 250-4: _Cicero_, in his speech for Cluentius,
+     gives us a picture of the depth to which families in his
+     time had fallen through avarice, lust, etc., which it makes
+     one shudder to contemplate. Moreover, of the numerous
+     families mentioned in _Drumann's_ history, there are
+     exceedingly few which, either actively or passively had not
+     had some share in some odious scandal. Concerning even Cato,
+     see _Plutarch_, Cato, II, 25. Messalina's systematic
+     patronage of adultery: _Dio Cass._, LX, 18.]
+
+     [Footnote 250-5: _Gellius_, I, 6. In Greece, the same
+     symptoms appear clearly enough, even in _Aristophanes_:
+     compare especially his Thesmophoriazusae. The frequently
+     cited woman-hatred of Euripides is part and parcel hereof;
+     also the fact that since Socrates' time, the most celebrated
+     Grecian scholars lived in celibacy. (_Athen._, XIII, 6 seq.;
+     _Plin._, H. N., XXXV, 10.) Compare Theophrast in Hieronym.
+     adv. Jovin, I, 47, and _Antipater_, in _Stob�us_, Serm.,
+     LXVII, 25.]
+
+     [Footnote 250-6: In modern Italy, the monstrosity known as
+     cicisbeism had not assumed any great proportions before the
+     17th century, in consequence of the bad custom which
+     permitted no woman to appear in public without such
+     attendant, and ridiculed the husband for accompanying his
+     own. In the time of the republics, the conventual seclusion
+     of girls and the duenna system were not yet customary.
+     (_Sismondi_, Gesch. der Italiennischen Republiken, XVI, 251,
+     ff., 498, ff.) Adultery punished with death in many cities
+     of medieval Italy: for instance, the Jus Municipale
+     Vicentinum, 135. Concerning the Spanish cicisbeos, who
+     evince as much shamelessness as fidelity, see _Townsend_,
+     Journey, II, 142, ff. _Bourgoing_, Tableau, II, 308, ff. The
+     so-called _cortejos_ are generally young clerics or young
+     officers.]
+
+     [Footnote 250-7: A young American woman says to Mrs. Butler:
+     "We enjoy ourselves before marriage, but in your country
+     girls marry to obtain a greater degree of freedom, and
+     indulge in the pleasures and dissipations of society." While
+     the young girls are always to be met with in the streets,
+     wives are to be found always in the kitchen. (_Mrs. Butler_,
+     American Journal, II, 183.) Compare _Beaumont_, Marie ou
+     l'Esclavage aux �tats-Unis, I, 25 ff. 349. The opposite
+     extreme in Italy, where, therefore, too favorable an
+     inference should not be drawn from the small number of
+     illegitimate births. Morally considered, one act of adultery
+     outweighs 10 _stupra!_ Even in the age of the renaissance,
+     the free intercourse of young girls in England and the
+     Netherlands made a favorable impression on Italian
+     travelers; _Bandello_, Nov., II, 42; IV, 27.
+
+     Similar contrast in antiquity between Ionian and Dorian
+     women. Wives were more rigidly excluded from entering
+     gymnasia for males in Sparta than young girls. (_Pausan._,
+     V, 6, 5; VI, 20, 6; _Plato_, De Legg., VII, 805; _Xenoph._,
+     De Rep. Laced., I.) Compare _K. O. M�ller_, Dorier, II, 276
+     ff.]
+
+     [Footnote 250-8: _Plato_, De Legg., VI, 774, and
+     _Aristotle_, Polit., II, 6; V, 9, 6; VI, 2, 12, complain of
+     the too great supremacy of women in their day. Colossal land
+     ownership of Lacedemonian women. (_Aristot._, Polit., II, 6,
+     11.) And yet even Plato advises that women be allowed to
+     participate in the gymnasia, in the assemblies and to hold
+     public office, etc. They were indeed different from men, but
+     not as regards those qualities which fit for ruling. (De
+     Rep., V, 451 ff.; De Legg., VI, 780; VII, 806.) That the
+     Roman courtesans wore the male toga and were therefore
+     called togat�. _Horat._, Serm., I, 2, 63 ff., 80 ff.;
+     _Martial_, VI, 64, recalls certain caricatures of very
+     recent times; for instance, Bakunius' demand that both sexes
+     should wear the same kind of dress. (_R. Meyer_,
+     Emancipationskampf des 4 Standes, I, 43.) Later, concerning
+     wifish men, see _Apuleius_, Metam., VIII; _Salvian_, Gubern.
+     Dei VII. We are led to a related subject in noticing that in
+     England of persons charged with serious crimes there were 10
+     women to 30 men; in Russia only 10 women to 81 men. (_v.
+     Oettingen_, 758.) As _Riehl_ remarks, Famille 15, the
+     undeniable _consensus gentium_, that the costume of men
+     should differ from that of women, is an equally undeniable
+     protest against this species of emancipation. I would add
+     that, as among ourselves in the earliest years of childhood,
+     so also among lowly civilized peoples, the difference in
+     costumes of the sexes is least apparent. (_Tacit._, Germ.,
+     17; Plan. Carpin., Voyage en Tartarie; Add. �d., Bergeron,
+     art. 2.) Even the physical difference is smaller there
+     (_Waitz_, Anthropologie der Naturv�lker, I, 76), especially
+     in the size of the pelvis. (_Peschel_, V�lkerkunde, 81,
+     86.)]
+
+     [Footnote 250-9: Even _Plato_ complains of the unnatural
+     relations of the sexes to one another, and would instead
+     have the unions of couples of short duration introduced, and
+     complete community of children under the direction of the
+     state. (De Rep., V.) The Stoic Chrysippos approves the
+     procreation of children by parent and child, brother and
+     sister. (_Diog. Laert._, VII. 188.) In the time of Epictetus
+     (Fr. 53, ed. Duebner), the Roman women liked to read Plato's
+     republic, because in his community of wives they found an
+     excuse for their own course. The Anabaptists appealed to
+     Christ's saying that he who would not lose what he loved
+     could not be his disciple. Thus the women should sacrifice
+     their honor and suffer shame for Christ's sake. Publicans
+     and prostitutes were fitter for heaven than honorable wives,
+     etc. (_Hagen_, Deutschlands Verh�ltnisse im
+     Reformationszeitalter, III, 221.)
+
+     In our days, the theory inimical to the family is based
+     rather on misconceived ideas of freedom and science. The
+     Christian mortification of the flesh is, it is said,
+     one-sidedness; and that the flesh no less than the spirit is
+     of God. Hence it is that Saint Simonism would reconcile the
+     two, and "emancipate" the flesh. (_Enfantin_, Economie
+     politique, 2d ed., 1832.) _Fourier_, in his Harmonie, allows
+     each woman to have one _�poux_ and two children by him; one
+     _g�niteur_ and one child by him; one _favori_ and as many
+     _amants_ with no legal rights as she wishes. His "harmonic"
+     world he would protect against over-population by four
+     organic measures: the _r�gime gastrosophique_, the object of
+     which is by first-class food to oppose fecundity; _la vigeur
+     des femmes_, because sickly women have most children;
+     _l'exercise int�gral_, since by the exercise of all the
+     organs of the body the organs of generation are latest
+     developed; lastly the _moeurs phan�rogames_, the minuter
+     description of which _Fourier's_ disciples omitted in the
+     later editions. (_N. Monde_, 377, ff.) _Fourier_ was of
+     opinion that only one-eighth of the mothers should be
+     occupied with the bringing up of the children, and that a
+     child's own parents were least adapted to bringing it up, as
+     is proved by the natural aversion of the child to mind the
+     advice or obey the injunctions of its own parents. (186 ff.)
+     If all were left free to choose their employment, two-thirds
+     of all men would devote themselves to the sciences, and
+     one-third of all women; the fine arts would be cultivated by
+     one-third of the men and two-thirds of the women. In
+     agriculture, two-thirds of the men and one-third of the
+     women would take to large farming, and to small farming
+     one-third of the men and two-thirds of the women.
+
+     The Communistic Journal, L'Humanitaire, is in favor of a
+     community of wives proper, while _Cabet_ leaves the question
+     an open one. Compare, besides, _Godwin_ on Political
+     Justice, 1793, VIII, ch. 8. In beautiful contrast to this
+     are _J. G. Fichte's_ (compare, _supra_, � 2) views on
+     marriage and the family in the appendix to his Naturrecht,
+     although he, too, would largely facilitate divorce.]
+
+     [Footnote 250-10: _J. Bentham_, Trait� de L�gislation, II,
+     237, seq., says that it is scarcely decent for men to engage
+     in the toy trade, the millinery business, in the making of
+     ladies' dresses, shoes, etc. Compare _M. Wolstoncraft_,
+     Rettung der Rechte des Weibes, translated by Salzmann, 1793;
+     _v. Hippel_, �ber die b�rgerliche Verbesserung der Weiber,
+     1792. Rich in remarks on the woman question are _K. Marlo_,
+     System der Welt�konomie, and _Sch�ffle_, Kapitalismus und
+     Socialismus, 444 ff., who, for the most part, supports him.
+     Compare _Josephine Butler_, Woman's Work and Woman's
+     Culture: a Series of Essays, 1792; _Leroy-Beaulieu_, Le
+     Travail des Femmes au. 19, si�cle, 1873. Between 1867 and
+     1871, the number of men dependent on their own action in
+     Berlin, increased 22.9 per cent.; of women dependent on
+     their own labor, 36.6 per cent. (_Schwabe_, Volksz�hlung,
+     1871, 84.)]
+
+     [Footnote 250-11: _J. S. Mill_, on the other hand, rejoices
+     over the great economic independence of women, and expects
+     from it especially a decrease in the number of thoughtless
+     marriages. (Principles, IV, ch. 7, 3. Compare by the same
+     author, The Subjection of Women, 1869.) I need only mention
+     the dramatic art and the factory proletariat, where the
+     independence in question obtains and indeed with very
+     different results! It is very characteristic of the time,
+     that _Homer_(Il., XII, 433) considered the spinning for
+     wages as despicable, while _Socrates_, in the mournful
+     period following the Peloponnesian war, earnestly counsels
+     that free women without fortune should employ themselves
+     with home industries. (_Xenoph._, Memor., II, 7.) It is in
+     keeping with this that during the time of scarcity after the
+     Peloponnesian war even female citizens hired themselves out
+     as nurses. (_Demosth._, adv. Eubul., 1309, 1313.) The
+     frequency of such engagements has, in many respects, causes
+     related to these which produce a frequency of illegitimate
+     births.]
+
+
+SECTION CCLI.
+
+POLYANDRY.--EXPOSURE OF CHILDREN.
+
+In some of the countries of farther Asia, the immoral tendencies counter
+to over-population which with us take the direction of illegitimate
+births and acts of adultery, assume the guise of formal institutions
+established by law. I need only cite the polyandry of East India, Thibet
+and other mountainous regions of Asia, which is indeed modified somewhat
+by the fact that, as a rule, only several brothers have one wife in
+common.[251-1]
+
+That unnatural institution is, in many localities, based on this, that a
+great many of the newly born female children are killed or at least sold
+in foreign parts after they have grown.[251-2] In addition to this, we
+have the very great encouragement given to celibacy in the Himalayas, so
+that only monks can attain to a higher education and to the higher
+honors.[251-3] In many parts of the East Indies, we find a legally
+recognized community of wives, which is but slightly modified[251-4] by
+the difference of caste; and almost everywhere, that looseness of
+general morality which usually characterizes declining nations.[251-5]
+
+China is, as a rule, considered the classic land of child-exposure. And
+a writer of the country, who is considered one of the principal
+authorities against the exposure of children, actually claims that it is
+reprehensible only when one has property enough to support them. The
+murder of daughters he especially reprobates as "a struggle against the
+harmony of nature; the more a father performs this act, the more
+daughters are born to him; and no one has ever heard that the birth of
+sons was promoted in this way."[251-6] Moreover, the exposure of
+children in the later periods of antiquity played an important part. In
+Athens, the right of a father to expose his child was recognized by law.
+Even a Socrates accounts it one of the occasional duties of midwives to
+expose children.[251-7] Considered from a moral point of view, Aristotle
+has nothing to say against abortion.[251-8] In Rome, a very ancient law,
+which was still in existence in 475 before Christ, made it the duty of
+every citizen to have and to bring up children.[251-9] It was very
+different in the time of the emperors,[251-10] and until Christianity,
+made the religion of the state, caused a legal prohibition against the
+exposure of children to be passed.[251-11] [251-12]
+
+     [Footnote 251-1: _Turner_, Embassy to Thibet, II, 349, tells
+     of five brothers who lived satisfied thus under one roof.
+     (_Jacquemont_, Voyage en Inde, 402.) In Ladakh, all the
+     children are ascribed to the eldest brother, to whom also
+     the property belongs; all the younger brothers are his
+     servants and may be expelled the house by him. (_Neumann_,
+     Ausland, 1866, No. 16 seq.) In Bissahir, on the other hand,
+     the eldest child belongs to the eldest brother, the second
+     to the second, etc. Here the wife is bought by all the
+     brothers together and treated precisely as a slave.
+     (_Ritter_, Erdkunde, III, 752.) In Bhutan, the men move into
+     the house of the woman, who is frequently old, and who
+     before marriage, and up to her 25th or 30th year, has
+     generally lived very lawlessly. (_Ritter_, IV, 195.) Among
+     the Garos, the wife may leave the man at pleasure and not
+     lose her property or her children, while her husband by her
+     rejection of him loses both. (_Ritter_, V, 403.) Even in
+     Mahabarata, polyandry occurs among the Northern Indians.
+     Similarly, among the Indo-Germanic tribes in Middle Asia
+     (_Ritter_, VII, 608); according to Chinese sources in
+     ancient Tokharestan (_Ritter_, VII, 699), and among the
+     Sab�ans (_Strabo_, XVI, 768). Even in ancient Sparta.
+     (_Polyb._, XII, 6.)]
+
+     [Footnote 251-2: In lower Nerbudda, the poisoning of new
+     born female children was very common about the beginning of
+     this century. In Kutch, people prefer to marry persons from
+     foreign countries, and murder their own daughters.
+     (_Ritter_, VI, 623, 1054.) Similarly, even in the Indian
+     Arcadia, the land of the Nilgherrys (V, 1035 seq.). In
+     Cashmir, all the beautiful girls are sold in the Punjab and
+     in India from their eighth year upwards. (VII, 78.)
+     Similarly in the Caucasus and in the mountainous region of
+     Badakschan. (VII, 798 ff.) _v. Haxthausen_, Transkaukasia,
+     1856, I, ch. 1, tells how the Russians captured a vessel
+     carrying Circassian slaves into Turkey. They left them their
+     choice, to go back home, marry in Russia, or to continue
+     their journey to Constantinople. They all unhesitatingly
+     chose the last! There is an echo of something analogous even
+     in the Semiramis saga.]
+
+     [Footnote 251-3: In many parts of Thibet and Rhutan the
+     fourth son, and in some places the half of the young men,
+     become lamas. (_Ritter_, Erdkunde, IV, 149, 206.)]
+
+     [Footnote 251-4: Among the Garos and Nairs, as well as among
+     the Cossyahs, in Northwestern Farther India, the children
+     have no father, but consider their brothers on the mother's
+     side their nearest male relatives. Inheritance also takes
+     this direction. (_J. Mill_, History of British India, I, 395
+     seq. _Buchanan_, Journey through Mysore, II, 411 seq.
+     _Ritter_, V, 390 seq., 753.) Similarly, among the Lycians:
+     _Herodot._, I, 173. Whether the peculiar custom of many old
+     German people, of which _Tacitus_, Germ., 20, makes mention,
+     does not point to an original community of wives, _qu�re_.]
+
+     [Footnote 251-5: Even the most debauched European is a
+     pattern of modesty compared with the Indians themselves.
+     (Edinb. Rev., XX, 484.) On the frightful development of
+     unnatural as well as natural crimes against chastity among
+     the Chinese, see _G. Schlegel_, in the memoirs of the
+     Genoostchap van Kunsten en Wetenschappen in Batavia, Band.
+     XXXII, and Ausland, Januar., 1868.]
+
+     [Footnote 251-6: According to _J. Bowring's_ official
+     report: Athen�um, 17 Nov., 1855. That the exposure of
+     children is allowed by law in China, and that many poor
+     couples marry with the intention of exposing them, is
+     unquestionable. But the reports concerning the extent of the
+     evil differ materially. The Jesuits estimated that in Pekin
+     alone from 2,000 to 3,000 children were exposed in the
+     streets. To this must be added the many thrown into the
+     water or smothered in a bath-tub immediately after birth.
+     Compare Lettres �dif., XVI, 394 ff.; _Barrow_, 166 ff. The
+     street-foundlings were picked up by the police and placed in
+     wagons, living and dead together, and cast into one pit in a
+     part of the city. Other accounts are much more favorable:
+     thus that of _Ellis_, Voyage, ch. 7, who was there in 1816,
+     and of _Timkowski_, Reise, II, 359. Compare the quotations
+     in _Klemm_, Kulturgeschichte, VI, 212.]
+
+     [Footnote 251-7: _Petit_, Legg. Att., 144. Compare _Becker_,
+     Charicles, I, 21 ff.; _Plato_, The�t., 150 ff. In Plato's
+     state, a system of exposure on a large scale is one of the
+     most essential foundations of the whole. (De Re., V, 461.)]
+
+     [Footnote 251-8: Aristotle advised that males should not
+     marry before their 37th year, and that at least after their
+     55th year they should bring no more children into the world.
+     No family was allowed to have more than a definite number of
+     children. (Polit., VII, 14.) There are even yet pictures of
+     Venus trampling an embryo under foot. (_R. O. M�ller_,
+     Denkm�ler der alten Kunst, II, No. 265.) Compare, _per
+     contra_, _Stobaeus_, Serm., LXXIV, 91; LXXI, 15.]
+
+     [Footnote 251-9: _Dionys. Hal._, Ant. Rom., IX, 22.]
+
+     [Footnote 251-10: _Plutarch_, De Amore Prol., 2, Minut.
+     Felix Octav., 30. That it seemed entirely right, when
+     persons had "enough" children, to put the others to death,
+     is proved by the catastrophe in _Longus'_ idyllic romance,
+     IV, 24, 35. Even men like _Seneca_ (Contr., IX, 26; X, 33)
+     and _Tacitus_ (Ann., III, 25 ff.) were actually in favor of
+     the right of exposing children. On the frequency of
+     artificial abortion, see _Juvenal_, VI, 594. Semi-castration
+     of young slaves for libidinous women who did not want to
+     bear children. (_Juvenal_, VI, 371 ff.; _Martial_, I, V67.)]
+
+     [Footnote 251-11: Under Constantine the Great, 315 after
+     Christ. _Theod._, Cod., XI, 27, 1]
+
+     [Footnote 251-12: It is an unfortunate fact that many modern
+     nations approximate more closely to this abomination of the
+     ancients than is generally supposed. The infrequency of
+     illegitimate children in Romanic southern nations is offset
+     by the enormous number of exposures almost after the manner
+     of the Chinese. See the tables in _v. Oettingen_, Anhang,
+     95. In Milan, between 1780 and 1789, there were, in the
+     aggregate, 9,954 children abandoned; between 1840 and 1849,
+     39,436. (_v. Oettingen_, 587.) On abortion in North America,
+     and the numberless bold advertisements of doctors there that
+     they are ready to remove all impediments to menstruation
+     "from whatever cause," see _v. Oettingen_, 523, and Allg.
+     Zeitung, 1867, No. 309. It would be a very mournful sign of
+     the times if the work: Principles of Social Science, or
+     physical, sexual and natural Religion; an Exposition of the
+     real Cause and Cure of the three great Evils of Society,
+     Pauperism, Prostitution and Celibacy, by a Doctor of
+     Medicine (Berlin, 1871), were really a translation of an
+     alleged English original. It is throughout atheistic,
+     materialistic and immoral, concerned only with one
+     fundamental idea: to instruct women how to prevent
+     conception!]
+
+
+SECTION CCLII.
+
+POSITIVE DECREASE OF POPULATION.
+
+The way of vice is steep. Where the aversion to the sacrifices and to
+the limitations of liberty imposed by marriage, has permeated the great
+body of the people; where, indeed, the immoral tendencies counter to
+population described in � 249 ff. have been largely developed, they very
+readily cease to be mere checks, and population may positively decline.
+While in the case of fresh and vigorous nations, the mere loss of men
+caused by wars, pestilence, etc., is very easily made up;[252-1] that
+reproductive power may here be too much enfeebled to fill up the gap
+again. It has happened more than once that the decline of a period has
+been frightfully promoted by great plagues, which have swept away in
+whole masses the remnants of a former and better generation.[252-2] The
+return of the relatively small population of its childhood to a nation
+in its senility cannot be ascribed exclusively to a decrease in its
+means of subsistence and to a less advantageous distribution of
+them.[252-3] [252-4] The depopulation, however, of Greece and Rome in
+their decline might be hard to understand were it not for the slavery of
+the lower class.[252-5]
+
+     [Footnote 252-1: It is said that the plague which, in 1709
+     and 1710, decimated Prussia and Lithuanian, carried away
+     one-third of the inhabitants, and even one-half of those at
+     Dantzig. While previously the number of marriages annually
+     was, on an average, 6,082, it rose in 1711 to 12,028. In
+     1712 it was 6,267, and sank some years afterwards on account
+     of the decrease in population, to 5,000. (_S�ssmilch_,
+     G�ttl. Ordnung, I, Tab. 21.) Similar effects of the plague at
+     Marseilles, 1720. (_Messance_, Recherches sur la Population,
+     766.) In Russia, too, it was observed after the devastation
+     produced by the black death in 1347 and the succeeding
+     years, that the population again increased at an
+     extraordinarily rapid rate; and that an unusual number of
+     twins and triplets were born (?). (_Karamsin_, Russ. Gesch.,
+     IV, 230.) Compare _Dalin_ Schwed. Gesch., 11,384;
+     _Montfaucon_, Monuments de la Monarchie Fran�aise, I, 282.]
+
+     [Footnote 252-2: I would mention the Athenian pestilence
+     during the last years or Pericles; the Roman in the _orbis
+     terrarum_, between 250 and 265 B.C., which is said to have
+     destroyed one-half of the population of Alexandria.
+     (_Gibbon_, Hist. of the Roman Empire, ch. 10.) It also made
+     frightful ravages, intellectually, on the nationality of the
+     Romans. (_Niebuhr._) Thus, in England, the black death
+     contributed very largely to cause the disappearance of the
+     medieval spirit. (_Rogers._) Of great political importance
+     was the pestilence of Bagdad, which, in 1831, carried off
+     2/3 of the inhabitants. All national bonds seemed dissolved,
+     robbers ruled the country; the army of the powerful Doud
+     Pascha was carried off entirely, and his whole political
+     system, constructed after the model of that of Mehemet-Ali,
+     fell into ruin. Compare _Anth. Groves_, Missionary Journal
+     of a Residence at Bagdad, 1832.]
+
+     [Footnote 252-3: Among the Maoris, the number of sterile
+     women is 9 times as great as the average in Europe. Compare
+     Reise der Novara, III, 129.]
+
+     [Footnote 252-4: The decreasing number of English Quakers,
+     among whom, in 1680-89, there occurred 2,598 marriages, and
+     in 1840-49 only 659, finds expression in the unfrequency of
+     marriage, a comparatively small number of women and a small
+     number of children, all in conjunction with a small
+     mortality. (Statist. Journ., 1859, 208 ff.) There is no
+     reason to have recourse here to vice as a cause, and
+     scarcely to physiological reasons for an explanation,
+     because these phenomena are accounted for in great part by
+     the fact that adult males so frequently leave the sect.]
+
+     [Footnote 252-5: In this respect, however, there is a great
+     difference between bondage and slavery. As early a writer as
+     _Polybius_ speaks of the depopulation of Greece. (_Polyb._,
+     II, 55; XXXVII, 4.) He looks for the cause in this, that in
+     every family, for luxury's sake, either no children whatever
+     were wanted, or at most from one to two, that the latter
+     might be left rich. (Exc. Vat., 448.) Very remarkable,
+     _Seneca_, Cons. ad. Marc, 19. Further, _Cicero_, ad. Div.,
+     II, 5. _Strabo_, VII, 501; VIII, 595; IX, 617, 629.
+     _Pausan._, VII, 18; VIII, 7; X, 4; _Dio Chr._, VII, 34, 121;
+     XXXIII, 25. _Plutarch_ claimed that Hellas could, in his
+     time, number scarcely 3,000 hoplites, while in the time of
+     Themistocles, Megalis alone had put as many in the field.
+     (De Defectu Orac., S.) Antium and Tarentum similarly
+     declined under Nero. (_Tacit_., Ann., XIV, 27.) The
+     depopulation even of the capital, which began under
+     Tiberius, is apparent from _Tacit._, Ann., IV, 4, 27.
+     National beauty also declined with the nation's
+     populousness. _�schines_ saw a great many beautiful youths
+     in Athens (adv. Timarch., 31); _Cotta_, only very few
+     (_Cicero_, de Nat. Deorum, I, 28); _Dio Chrysostomus_,
+     almost none at all (Orat., XXI). On the necessary lowering
+     of the military standard of measure, see _Theod._, Cod.,
+     VII, 13, 3, _Verget_, de Re milit., I, 5. The depopulation
+     of the later _orbis terrarum_ is confirmed by the easiness
+     of the new division of land with the German conquerors.
+     Compare _Gaupp_, Die Germanischen Niederlassungen und
+     Landtheilungen (1845), passim.]
+
+
+
+
+CHAPTER III.
+
+POPULATION-POLICY.
+
+
+SECTION CCLIII.
+
+DENSE POPULATION.--OVER-POPULATION.
+
+The nation's economy attains its full development wherever the greatest
+number of human beings simultaneously find the fullest satisfaction of
+their wants.
+
+A dense population is not only a symptom of the existence of great
+productive forces carried to a high point of utilization;[253-1] but is
+itself a productive force,[253-2] and of the utmost importance as a spur
+and as an auxiliary to the utilization of all other forces. The new is
+always attractive, by reason of its newness; but at the same time, we
+hold to the old too precisely because of its age: and the force of
+inertia would always turn the scales in favor of the latter. This
+inertia, both physical and mental is so general, that perhaps the
+majority of mankind would continue forever satisfied with their
+traditional field of occupation and with their traditional circle of
+food, were it not that an impulse as powerful and universal as the
+sexual and that of the love of children compelled them to extend the
+limits of both. That man might subdue the whole earth it was necessary
+that the Creator should make the tendency of man to multiply his kind
+more powerful than the original production-tendency of his earliest
+home. The unknown far-away deters as much as it attracts.[253-3] It is
+easy to see how the division and combination of labor become uniformly
+easier as population increases in density. Think only of large cities as
+compared with the country.[253-4] "Under-populated"[253-5] countries,
+which might easily support a large number of human beings, and which,
+notwithstanding have for a long period of time had only few inhabitants,
+are on this account abodes of poverty, regions where education and
+progress are unknown. While, therefore, it cannot be questioned that a
+nation under otherwise equal circumstances is more powerful and
+flourishing in proportion as its population embraces a large number of
+vigorous, well-to-do, educated and happy human beings, the last
+mentioned attributes should not be left out of consideration.
+
+The possibility of over-population is contested by a great many
+theorizers (� 243); and, indeed, the complaints on this score are in
+most cases only a baseless pretext of the inertia which feels the
+pressure of the population without being helped and spurred thereby to
+an increase of the means of subsistence. This inertia itself, especially
+when it governs a whole nation, is a fact which cannot be ignored.
+Over-population, as I use the term, exists whenever the disproportion
+between the population and the means of subsistence operates in such
+away that the average portion of the latter which falls to the share of
+each is oppressively small, whether the effect produced thereby
+manifests itself in a surprisingly large mortality, or in the limitation
+of marriages and of the procreation of children carried to the point of
+hardship. Over-population of this kind is, as a rule, curable by
+extending the limits of the field of food, either as a result of the
+advance of civilization at home, or by emigration.
+
+That the whole earth should be incurably over-peopled is an exceedingly
+remote contingency.[253-6] But where, within a smaller circle, by reason
+of the great stupidity or weakness of mankind, or by the too great power
+of circumstances, over-population cannot act as a spur to new activity,
+it is indeed one of the most serious and most dangerous political
+diseases.[253-7] The immoderate competition of workmen involves the
+majority of the nation in misery, not only materially but also morally;
+one of the most dangerous temptations, for the rich to a contempt for
+human kind, for the poor to envy, dishonesty and prostitution. In every
+suffocating crowd, the animal part of man is wont to obtain the victory
+over the intellectual. Precisely the simplest, most universal and most
+necessary relations are most radically and disastrously affected by the
+difficulty or impossibility of contracting marriage, and the sore
+solicitude for the future of one's children.[253-8]
+
+     [Footnote 253-1: A map of Europe, which would show the
+     density of population by the intensity of shade, would be
+     darkest in the vicinity of the lines between Sicily and
+     Scotland, between Paris and Saxony, and grow lighter in
+     proportion to the distance from their point of intersection.
+     Italy is the country with the earliest highly developed
+     national economy of modern times, and England that which
+     possesses the most highly cultivated national economy; as
+     the Rhine is, from the standpoint of civilization, the most
+     important river in Europe. It is remarkable, in this
+     connection, how slowly population increased in all European
+     countries during the 18th century, and how rapidly after the
+     beginning of the 19th, and especially since 1825. According
+     to _Dieterici_ (Berliner Akademie, 16 Mai, 1850), the
+     population increased annually per geographical square mile:
+
+     ===========================================================
+          _In_            |_1700-1800._|_1800-1825._|_1824-1846._
+     ---------------------+------------+-----------+------------
+                          |     BY     |     BY     |    BY
+     France               |      4     |     16     |    32
+     Naples,              |     15     |     18     |    49
+     Piedmont,            |      6     |      8     |    50
+     Lombardy,            |     19     |     40     |    80
+     England and Wales,   |     16     |     42     |   136
+     Scotland,            |      3     |     16     |    34
+     Ireland,             |     17     |     80     |    77
+     Holland,             |     13     |     14     |    95
+     Belgium,             |     15     |     44     |   136
+     Prussia,             |      7     |     17     |    68
+     Hanover,             |      6     |     12     |    32
+     W�rttemberg,         |     17     |     12     |    56
+     Bohemia,             |     16     |     27     |    73
+     ===========================================================]
+
+     [Footnote 253-2: "The useful rearing of children the most
+     productive of all outlay." (_Roesler._)]
+
+     [Footnote 253-3: Compare _J. Harrington_ (ob. 1677),
+     Prerogative of a popular Government, I, ch. II; _Sir J.
+     Stewart_, Principles, I, ch. 18; _Malthus_, Principle of
+     Population, IV, ch. 1; _McCulloch_ very happily shows how
+     seldom those who can live comfortably without it are
+     extraordinarily active. The Malthusian law prevents this
+     ever becoming the condition of the majority. Precisely
+     during those years that man is most capable of labor, there
+     is a prospect of a great increase of outlay, in case one
+     does not remain single, which would inevitably degrade every
+     one, a few over-rich excepted, who had not taken care to
+     provide for a corresponding increase of income. Were it not
+     for this, human progress would become slower and slower, for
+     the reason that the _dura necessitas_ would be felt less and
+     less.]
+
+     [Footnote 253-4: According to _Purves_, Principles of
+     Population, 1818, 456, there were, in England (London not
+     included):
+
+     Column Head Key A: _In the seven most densely populated counties._
+                     B: _In the seven counties of average population.
+                     C: _In the five most sparsely populated counties.
+
+                                 |     A     |    B    |    C
+     ----------------------------+-----------+---------+---------
+     Inhabitants per             |           |         |
+        geographical sq. mile,   |  4,904    |  2,229  |  1,061
+     One man with �60 income     |           |         |
+       in every                  |34 inhab'ts|     37  |     77
+     One man with �200 income    |           |         |
+       in every                  |  193  "   |    199  |    472
+     Aggregate of all incomes    |           |         |
+       over �200 per square mile,| �25,118   | �12,676 | �2,441
+     ----------------------------+-----------+---------+---------
+
+     Compare _Rau_, Lehrbuch, II, � 13. Something analogous has
+     frequently been observed as to taxation capacity. Thus, for
+     instance, the Hessian provinces paid in direct taxation and
+     taxation on wines, liquors, etc.; and the density of the
+     population was in the ratio--
+
+          In Rhenish Hessen,   100  100.
+          In Starkenburg,       65   64.
+          In Upper Hessen,      64   59.
+
+     (_Rau_, Lehrbuch, III, � 280.) In many European countries,
+     the population has for a long period of time, and in a
+     comfortable way, increased most rapidly where it has been
+     densest. Thus, for instance, the kingdom of Saxony was, in
+     1837, the most densely populated of all the monarchical
+     states of Germany (6,076 inhabitants per square mile),
+     Hanover (2,416) and Mecklenburg-Schwerin (2,004) were among
+     the most sparsely peopled. And yet the annual increase of
+     population between 1837 and 1858 was greatest in Saxony
+     (1.36 per cent.) while Hanover (0.44) and
+     Mecklenburg-Schwerin (0.59) stood very low in this respect.
+     In very thinly populated countries, nature permits even the
+     civilized man to deteriorate: thus the French in Canada, the
+     Spaniard in the valley of the La Plata.]
+
+     [Footnote 253-5: This excellent expression seems to have
+     been first used by _Gerstner_, Grundlehren der
+     Staatsverwaltung, 1864, II, 1, 176 ff. It must indeed be
+     distinguished from a rapidly growing, but for the time
+     being, a sparsely settled country. A nation with an equal
+     population on a larger surface is, frequently in the
+     immediate present weaker than another in which the
+     population is more dense; but it has the advantage of a
+     greater possibility of growth in the future. Think of the
+     electorates of Saxe and of Brandenburg in the sixteenth
+     century. Just as _Thaer_, Landwirthschaftliche Gewerbelehre,
+     � 149, advises that a mere annuitant should, values being
+     the same, rather purchase a smaller fertile estate; a very
+     able husbandman the reverse.]
+
+     [Footnote 253-6: We need only call to mind such facts as for
+     instance that the United States wealth of coal is 22 times
+     as great as that of Great Britain. (_Rogers_, The Coal
+     Formation and a Description of the Coal Fields of North
+     America and Great Britain, 1858.) In addition to this, only
+     about 16 per cent. of the combustible material is really
+     used in the way furnaces are now generally filled, only 10
+     per cent. in foundry furnaces, and from 14 to 15 per cent.
+     in the transportation of passengers on railways. The Falls
+     of Niagara afford a water-power equal to 2/3 of all the
+     steam engines which existed, a short time since, in the
+     whole world. (_E. Hermann_, Principien der Wirthschaft,
+     1873, p. 49, 153, 243.) But that single families, houses,
+     branches of business, etc. may be over-peopled, and the
+     impoverishing disproportion between numbers and the means of
+     subsistence not be susceptible of immediate removal by the
+     unaided power of the crowded circle, cannot be questioned.]
+
+     [Footnote 253-7: _Aristotle_ had recognized the possibility
+     of over-population. (Polit., II, 4, 3, 7, 4; VII, 4, 5; VII,
+     14.) _Schmitthenner_, Staatswisensschaften, I, distinguishes
+     between relative and absolute over-population: the former is
+     remediable by intellectual and especially by political
+     development, while the latter borders on the extreme
+     physical and possible limits of the means of subsistence.
+     _W. Thornton_, Over-population and its Remedy, 1849, 9,
+     considers a country in English circumstances over-populated
+     when a man between twenty and seventy years of age is not in
+     a condition to support, by means of his wages, 1-1/4 persons
+     in need of assistance (children under 10, women over 60, and
+     men over 70 years of age).]
+
+     [Footnote 253-8: Thus, for instance, in war, one million of
+     peasants are infinitely more powerful, especially in case of
+     a protracted defensive war, than two millions of
+     proletarians. Alaric's saying: "thick-growing grass is most
+     easily mowed."]
+
+
+SECTION CCLIV.
+
+THE IDEAL OF POPULATION.
+
+Hence it was not an erroneous policy that most governments have sought
+to promote the increase of population in undeveloped nations. So far as
+the influence of the acts of government can reach, such a course must
+tend to the earlier maturity of a people's economy. Much more
+questionable are positive provisions by government intended to hinder
+the further increase of population in a country already supposed to be
+fully peopled; if for no other reason, because even the deepest, most
+varied and extensive knowledge can scarcely ever predict with certainty
+that no further extension of the field of food is possible under the
+spur of momentary over-population; and also because questions of
+population reach so far into the life and tenderest feelings of the
+individual that a government which has regard for the personal freedom
+of its subjects, instead of promoting or hindering marriage, emigration
+etc. by police regulations, cannot but limit itself to a statistical
+knowledge and legislative regulation of these relations.[254-1] [254-2]
+
+Whether the population of a country increase in a well-to-do or
+proletarian manner; whether, therefore, the state should rejoice or
+lament over such increase, may generally be inferred with some certainty
+from the other conditions of the country's economy, especially from the
+height of the rate of wages and from the consumption of the nation (�
+230). Thus, for instance, the population of England, between 1815 and
+1847, increased 47 per cent.; but during the same period the value of
+its exports increased 63 per cent.; the tonnage of its merchant marine,
+55 per cent.; the amount yielded by the tax on legacies, and therefore
+moveable property, by 93 per cent.; the value of immoveable property by
+78 per cent. Wherever in agriculture the ancient system of triennial
+rotation (_Dreifelder-system_ = _three-field system_) has been exchanged
+for the so-called English system, not only is a greater number of men
+supported, but, as a rule, each is more abundantly provided for.[254-3]
+The construction of new houses is an especially good symptom, because a
+habitation is a want which governs many others, and which, at the same
+time, may be much curtailed in case of need. Only, there should be no
+thoughtless building speculations, the existence or absence of which may
+readily be inferred from the ratio between the rent of houses and the
+rate of interest usual in the country. In England and Wales there was,
+in 1801, one house to every 5.7 inhabitants; in 1821, to every 5.8; in
+1841, to every 5.4; in 1861, to every 5.39; in 1871, to every
+5.35.[254-4]
+
+The taking of the census at regular intervals in accordance with the
+principles of modern science, and with the apparatus of modern art, is
+one of the chief means to enable us to form a correct judgment of the
+health of the national life and of the goodness of the state.[254-5]
+
+     [Footnote 254-1: Compare _R. Mohl_, Polizeiwissenschaft, I,
+     � 15.]
+
+     [Footnote 254-2: There may be observed a regular ebb and
+     flow in the opinions of theorizers on this subject. During
+     the latter, great enthusiasm is manifested over the increase
+     of population, which is considered an unqualified benefit;
+     later, over-population gives rise to uneasiness. Not many
+     had as much insight as Henry IV.: _la force et la richesse
+     des rois consistent dans le nombre et dans l'opulence des
+     sujets_. (Edict., in _Wolowski_ in the M�moires de l'Acad.
+     des Sciences morales et politiques, 1855.) Thus, for
+     instance, _Luther_, in his sermons on the married state,
+     advises all young men to marry at 20, and all young women at
+     from 15 to 18 years of age. The person who fails to marry
+     because he cannot support a family has no real confidence in
+     God. God will not allow those who obey his command to want
+     the necessaries of life. Werke by _Irmischer_, XX, 77 ff. In
+     England, great dread of depopulation under the first two
+     Tudors: 4 Henry VII., c. 19; 3 Henry VIII., c. 8. _J.
+     Bodinus_, De Rep., VI, is charmed with the Lex Julia et
+     Papia Popp�a. Its repeal was immediately followed by the
+     greatest looseness of morals and by depopulation.
+
+     On the other hand, a great dread of over-population
+     prevailed among English political economists at the end of
+     the sixteenth and the beginning of the seventeenth century.
+     They recommended their colonial projects by saying that they
+     desired to avert this danger. Thus, for instance, _Raleigh_,
+     History of the World, I, ch. 4; _Bacon_, Sermones fid., 15,
+     33, and his essay, De Colonies in Hiberniam deducendis.
+     Compare _Roscher_, Zur Geschichte der englischen
+     Volkswirthschaftslehre, 24, 26, 31, 34, 42. Similarly, at
+     the end of the fifteenth century, in highly developed Italy,
+     which had become stationary. According to _F. Patricius_ (De
+     Inst. Republ., VI, 4; VII, 12): _incolarum multitudo
+     periculosa est in omni populo_. Since _Colbert's_ time, the
+     opposite opinion has become the prevailing one. The densest
+     population had been observed in the wealthiest and
+     relatively the most powerful countries, and people thought
+     they had here sufficient data for a wide generalization. The
+     thought of military conscription by degrees obtained weight
+     in this connection. Thus, _Saavedra Faxardo_, Idea Principis
+     christiano-politici (1649), Symb. 66; _De la Court_,
+     Aanwysing (1699), I, 9. _Sir W. Temple_, says that the
+     fundamental cause of all commerce and wealth lies in a dense
+     population, which compels men to the practice of industry
+     and frugality. (Works, I, 162 ff., 171, III, 2.) _Imperii
+     potentia ex civium numero astimanda est._ (_Spinoza_, Tract,
+     politicus, VII, 18.)
+
+     Thus _Petty_ says that 1,000 acres which can support 1,000
+     men are better than 10,000 which do the same thing. He would
+     give Scotland and Ireland up entirely, and have the
+     inhabitants settle in England. In this way all combination
+     for common purposes would be facilitated. (Several Essays,
+     107 seq., 147 ff.) Peter the Great is said to have
+     entertained a similar view: Oeuvres de Fr�d�ric le Grand,
+     II, 23. More moderate is _Child_, Discourse of Trade, 298,
+     and still more so in 368 ff.; _Locke_, Works, I, 73 ff.; II,
+     3, 6, 191. In Germany, _v. Seckendorff_ advises that great
+     establishments for children should be erected, in which
+     orphans and even the children of poor parents should be
+     brought up at the expense of the state, simply with the
+     object of increasing the number of healthy men. (Teutscher
+     F�rstenstaat, ed. 1678, 203, Add. 179.) _Becher_, Polit.
+     Discours, 21, would have murderers punished because they
+     detract from population, although he elsewhere in his
+     definition of a city, "a nourishing populous community," is
+     no blind enthusiast over-population. According to _v.
+     Horneck_; Oesterreich �ber Alles, 1684, 29 ff., the third
+     fundamental rule of public economy is the greatest possible
+     increase and employment of men. _Vera regni potestas in
+     hominem numero consistit; ubi enim sunt homines, ibi
+     substanti� et vires._ (_Leibnitz_, ed., Dutens, IV, 2, 502.)
+     According to _Vauban_, D�me royale, 150, Daire, no child can
+     be born of a subject by which the king is not a gainer.
+     Compare 46,145. Numbers of People the greatest riches.
+     (_Law_, Trade and Money, 209.) Similarly, Law's disciple
+     _M�lon_, Essai politique sur le Commerce, ch. I, 3. The
+     number of people is both means and motive to industry
+     (_Berkeley_, Works, II, 187) and hence the public are
+     interested in nothing so much as in the production of
+     competent citizens. (Querist, Nr., 206.) _S�ssmilch_, G�ttl.
+     Ordnung, I, Kap. 10; Oeuvres de Fr�d�ric M. IV, 4; VI, 82.
+
+     About the middle of the 18th century, we find a whole school
+     of political thinkers who decide every question from the
+     standpoint of the influence of the solution on the increase
+     of population. (Excellently refuted by _Schl�zer,_
+     Anfangsgr�nde, II, 15 ff.) Thus especially _Tucker_,
+     Important Questions, IV, 11; V, 5; VII, 4; VIII, 5. Four
+     Tracts, 70. _Forbonnais_, Finances de France, I, 351, who
+     considered it one of the principal objects of a good
+     industrial policy to employ the greatest possible number of
+     men. _Necker_, Sur le Commerce et la L�gislation des Grains,
+     1776. _v. Sonnenfels_, Grunds�tze der Polizei, Handlung und
+     Finanz (1765), in which the principle of population is
+     called the highest principle of all four sciences of the
+     state (I, � 25 ff.). These writers understand the "balance
+     of trade" in such a way, that a nation always operates most
+     advantageously which gives employment to the largest number
+     of men with its export articles, (_v. Sonnenfels_, II, � 210
+     ff., 354 ff.) _v. Justi_, Staatswissenschaft, I, 160 ff.,
+     says plainly that a country can never have too many men.
+     According to _Darjes_, Erste Gr�nde, 379, "even the increase
+     of beggars brings something into the treasury by means of
+     the excise tax which they pay." Compare, also, _J. J.
+     Rousseau_, Contrat Social, III, 9; _Galiani_, Della Moneta,
+     II, 4; _Verri_, Opuscoli, 325; _Filangieri_, Leggi Politiche
+     ed Economiche, II, 2; _Paley_, Moral and Political
+     Philosophy, III, ch. 11. On similar grounds, _A. Young_
+     laments that the increase of proletarians is greatly
+     hindered by the English poor laws. (In later writings it is
+     somewhat different: compare Travels in France, I, ch. 12.)
+     How deeply such ideas had penetrated public opinion is
+     apparent from the opening words of the Vicar of Wakefield,
+     as well as from the declaration of _Pitt_ in parliament in
+     1796, that a man who had enriched his country with a number
+     of children had a claim upon its assistance to educate them.
+     Much more correctly, _Voltaire_, Dict. Philosophique, art.
+     Population, sect. 2.
+
+     The reaction which attained its height in the Malthusians
+     proper, set in with the Physiocrates and _Steuart: Quesnay_,
+     Maximes g�n�rales, No. 26; _Mirabeau_, Phil. rurale, ch. 8,
+     and Ami des Hommes (1762), VIII, 84. Similarly, _J. J.
+     Reinhard_, who calls Baden over peopled "for its present
+     system of agriculture." (Vermischte Schriften, 1760, I, 1
+     ff.; II, Varr.) _M�ser_ Patr. Phant., I, 33, 42; II, 1; IV,
+     15; V, 26. Also Minister _v. Stein_: Leben von Pertz, V, 72;
+     VI, 539, 887, 1184. Compare _supra_, � 242. Of certain
+     modern economists, it may be said that they deplore and
+     condemn the birth of every child for whose support there has
+     not been established a life long annuity in advance. A
+     remarkable but unsuccessful attempt is made by _Ch. P�rin_,
+     De la Richesse dans les Soci�t�s Chr�tiennes, at the end of
+     the first volume, to reconcile the opposing views. P�rin
+     reproaches the Malthusians, and especially _Dunoyer_ and _J.
+     S. Mill_, with the advocacy of _l'onanisme conjugal_, and
+     thus desiring to restore the old heathen situation. Only the
+     Church holds the proper mean between defect and excess,
+     inasmuch as it permits complete continency or the
+     procreation of children regardless of circumstances to its
+     members; while, on the other hand, it, by celibacy and by
+     the inculcation of industry, frugality, etc., guards against
+     over-population. (How well the Roman Church has succeeded in
+     this is best proved by the Roman Compagna!)
+
+     In Greece, too, in its first economic periods, especially at
+     the time that the first colonies were sent out, great fears
+     were expressed of over-population. _Hesiod_ weighs the
+     advantages and disadvantages of the married state against
+     one another with great thoroughness. (Theog., 600 ff.) In
+     the Cypria, even the Trojan war was explained by a divine
+     decree, emitted with the intention of removing
+     over-population.]
+
+     [Footnote 254-3: _A. Young_, Political Arithmetik, 160 ff.
+     In the United States, in ten years, the increase of wealth
+     to that of population, was as 61:33. (_Tucker_, Progress of
+     the United States, 202 ff.) As a good measure for the
+     well-being of the masses, _J. J. Neumann_ recommends the
+     relative number attending higher schools, also that of
+     shoemakers, tailors, etc., because the magnitude of the
+     consumption of wool, leather, etc., can scarcely be directly
+     ascertained. (_Hildebrand's_ Jahrbb., 1872, I, 283, 294.)]
+
+     [Footnote 254-4: Statist. Journ., 1861, 251. In Liverpool,
+     between 1831 and 1841, the population increased 40 per
+     cent., and the number of houses 24 per cent., on account of
+     the large immigration of Irish proletarians. (Edinb. Rev.
+     LXXX, 80.) According to _Fregier_, les Classes dangereuses,
+     the number of good buildings continually increased under
+     Louis Philippe, and that of the worst lodging houses
+     continually diminished. In Prussia, between 1819 and 1858,
+     the population increased 60.8 per cent., the number of
+     houses, 30.1 per cent.; but the insurance-value of the
+     houses seems to have increased in a still greater
+     proportion, (_v. Viebahn_, Zollverein's Statist., II, 291,
+     ff., 299.) According to _Horn_, Bev�lk. Studien, I, 62, ff.,
+     there are to every 100 persons in France, 20 dwelling
+     houses; in Belgium, 19; in Great Britain, 18; in Holland,
+     16; in Austria, 14; in Prussia, 12. Too much should not be
+     inferred from this mere table, as, for instance, in English
+     cities, a house is, on an average, smaller than in the
+     Prussian. A French house has, on an average, only 5-1/2
+     windows and doors; a Belgian house, on the other hand, 3-1/2
+     rooms. And so, in villages, it is found that there are
+     uniformly fewer persons to a house than in cities,
+     especially large ones. In Belgium, for instance, the cities
+     have to every 100 inhabitants, 66 rooms, the country only
+     62. In the largest parishes of France (over 5,000
+     inhabitants), the number of doors and windows is on the
+     average almost six times as great as in the smallest (under
+     5,000 inhabitants); but only 4 times as many persons live in
+     them. (_Horn_, loc. cit. I, 76 ff.)]
+
+     [Footnote 254-5: It was very well remarked, even of the
+     Servian census: _ut omnia patrimonii, dignitatis, �tatis,
+     artium officiorumque discrimina in tabulas referrentur, ac
+     sic maxima civitas minim� domus diligentia contineretur ...
+     ut ipsa se nosset respublica_. (_Florus_, I, 6, 8.)]
+
+
+SECTION CCLV.
+
+MEANS OF PROMOTING POPULATION.
+
+The following are the principal means which have been used to
+artificially promote the increase of population:
+
+A. Making marriage and the procreation of children obligatory by direct
+command. Among almost all medieval nations so strong is the family
+feeling, that it seems to men to be a sacred duty to keep their family
+from becoming extinct. Where a person is not in a condition physically
+to fulfill this duty, the law supplies a means of accomplishing it by
+juridical substitution[255-1] at least. Most national religions[255-2]
+operate in the same direction, as well as the influence of political
+law-givers, who fully share in the contempt for willful old bachelors
+and sterile women, which runs through the national feeling of all
+medieval times.[255-3] In addition to this, there are the positive
+rewards offered for large families of children.[255-4] Even Colbert, in
+1666, decreed that whoever married before his 20th year should be exempt
+from taxation until his 25th; that anyone who had 10 legitimate children
+living, not priests, should be exempt from taxation for all time;[255-5]
+that a nobleman having 10 children living should receive a pension of
+1,000 livres, and one having 12, 2,000 livres. Persons not belonging to
+the nobility were to receive one-half of this, and to be released from
+all municipal burthens.[255-6] Such premiums are, indeed, entirely
+superfluous. No nobleman would desire 12 children simply to obtain a
+pension of 2,000 livres! Colbert himself abandoned this system of
+premiums shortly before his death.[255-7] [255-8]
+
+In the case of morally degenerated nations, in which an aversion to the
+married state had gained ground, efforts have sometimes been made to
+work against it by means of new premiums. Thus, especially in Rome,
+since the times of C�sar and Augustus, although with poor success. It
+little becomes one who is himself a great adulterer to preach the sixth
+commandment.[255-9]
+
+     [Footnote 255-1: In Sparta, impotent husbands were obliged
+     to allow another man to have access to their young wives.
+     (_Xenoph._, De Rep. Laced., I. _Plutarch_, Lycurg., 15.)
+     Compare _J. Grimm_, Weisth�mer, III, 42. Great importance of
+     adoption in Roman law.]
+
+     [Footnote 255-2: Thus, the Indian laws of Menu, concerned
+     principally with the necessity of sacrifices to assure
+     parents an existence after death. Similarly, Zoroaster and
+     Mohammed. In the Bible the periods should be accurately
+     distinguished: I Moses, 2, 18; V Moses, 26, 5; Judges, 10,
+     4; 13, 14; Proverbs, 14, 28; 17, 6, and the Preacher, 4, 8
+     apparently agree; also I Corinth., 7, written under
+     essentially different circumstances but precisely on this
+     account not in contradiction with those passages of the Old
+     Testament.]
+
+     [Footnote 255-3: Genesis, 30, 23. In Sparta, willful
+     bachelorhood was almost infamous. (_Plutarch_, Lycurg., 15.)
+     In Athens, a person might be charged with _agamy_ as with a
+     crime. (_Pollux_, VIII, 40.) Concerning the ancient
+     censorial punishments inflicted on those who had no children
+     and the rewards of prolificacy, see _Valer. Max._, II, 9, 1;
+     _Livy_, XLV, 15; _Gellius_, I, 6: V, 19. Festus v. Uxorium.
+     Many German cities made marriage a qualification for the
+     holding of certain public offices, etc. In some places, the
+     public treasury was made the heir of bachelors, a custom not
+     abolished in Hanover until 1732. Compare _Ludewig_, on the
+     Hagestolziatu (1727), but also _Selchow_, Elem. Juris Germ.,
+     � 290. On the fines imposed on old bachelors in Spain,
+     during the middle ages, see _Gans_, Erbrecht, III, 401 seq.
+     Recently recommended very strongly by _Hermes_, Sophiens
+     Reise (3 aufl.), I, 660.]
+
+     [Footnote 255-4: Yearly rewards for _polytekny_ in Persia:
+     _Herodot._, I 136. In Sparta, a father with three children
+     was relieved of guard duty; and one with four, of all public
+     burthens. (_Aristot._, Polit., II, 6, 13. _Aclian_, V. H.,
+     VI, 6.) Between 1816 and 1823, 250 fathers received the
+     royal gift made to godchildren at their christening in the
+     district of Oppeln, for the seventh son. (_v. Zedlitz_,
+     Staatskr�fte der preuss. Monarchie, I, 285.) The king of
+     Hannover paid annually about 900 thalers in such gifts.
+     _Lehzen_, Hannovers Staatshaushalt, II, 346.]
+
+     [Footnote 255-5: Children who had fallen in the service of
+     their country were considered as still living. Precisely
+     similar laws had existed in Spain from 1623 (_de Laet_,
+     Hispania Cap., 4); in Savoy from 1648 (_Keysslers_, Reise,
+     I, 209).]
+
+     [Footnote 255-6: Russian law which required the serf master
+     to emancipate his male serfs who were not married by their
+     20th year, and female serfs not married by their 18th. He
+     could not charge them with desertion in such case, even
+     where combined with theft. (_Karamsin_, Russ. Gesch., XI,
+     59.) An ancient Prussian law provides that the country
+     people shall marry at the age of 25. Corpus Const., March,
+     V, 3, 148, 274.]
+
+     [Footnote 255-7: Lettres, etc. de Colbert, _�d_. Cl�ment,
+     II, 68, 120. _Voltaire_, Si�cle de Louis XIV. ch. 29,
+     bitterly complains of this; and also _Berkeley_, Works, II,
+     187, and _Forbonnais_, Finances de France, I, 391. On the
+     other hand, _Ferguson_, Hist, of Civil Society, III, 4,
+     asks: what fuel can the statesman add to the fires of youth?
+     Similarly, _Franklin_, Observations, etc. It should not be
+     forgotten that the taxes necessary to supply the so-called
+     marriage-fund, intended to enable poor couples to marry at
+     the expense of the state, make marriage more difficult for
+     other couples. (_Krug_, Staats-Oek., 31.)]
+
+     [Footnote 255-8: Frederick the Great limited the mourning
+     time of widowers to 3 months and of widows to 9. His
+     abolition of ecclesiastical punishment for those who had
+     fallen, and his prohibition of censuring them under penalty
+     of fine, was based as much on his population policy as on
+     philanthropic grounds. (Preuss. Geschichte, Friedrich's M.,
+     II, 337.) Similarly in Sweden: _Schl�zer_, V. W., V, 43. In
+     Iceland, after a great plague, even in the last century, it
+     was provided that it should be no disgrace to a young woman
+     to have as many as six illegitimate children. (_Zacchari�_,
+     Vierzig B�cher vom Staate, II, 112.) The marshal of Saxony
+     wished, in the interest of the recruiting of the army, that
+     marriages should be contracted only for a term of five
+     years. (R�veries de Maurice, etc., 345.) The sterile women
+     of Egypt visit the Tantah, a place of pilgrimage and
+     fair-town, where, under the cloak of religion, they give
+     themselves up to unbridled and promiscuous intercourse.
+     (_Wachenhufen_, vom �gypt. armen Mann, II, 151 ff.)]
+
+     [Footnote 255-9: Even in the year 131 B. C., the censor
+     Metellus demanded that citizens should, for political
+     reasons be compelled to marry. (_Livy_, LIX, _Sueton._, Oct.
+     89.) _Aes uxorium_ for bachelors. (_Valer. Max._, II, 9, I.)
+     C�sar distributed land by way of preference among those who
+     had three or more children. (_Sueton._, C�s. 20.) Augustus'
+     celebrated Lex Julia et Papia Popp�a sought to urge even
+     widows to marry again in opposition to the moral public
+     conscience. (Partly augendo �rario: _Tacit._, Ann., III,
+     25.) _Dio Cass._, LVI, 1 ff. Trajan did more yet, inasmuch
+     as he gave great assistance to impoverished parents, even of
+     the highest classes, to enable them to educate their
+     children. _Sub te liberos tollere libet, expedit!_ (_Plin._,
+     Paneg., 26.) Of what little assistance all this really was,
+     _Tacitus_, Ann., III, 25, IV, 16, and _Plin._, Epist. IV,
+     15, bear witness. If, under the C�sars, the damage done to
+     the childless in the case of inheritance was a frequent
+     motive of divorce (_Friedl�nder_, Sittengeschichte I, 389),
+     the L. Julia, in fact, operated in a direction contrary to
+     that in which it was intended to work.]
+
+
+SECTION CCLVI.
+
+IMMIGRATION.
+
+B. Calling for immigrants. This is a means all the more in favor,
+inasmuch as it provides the country not only with new-born children, but
+with mature men, who frequently, when they come from thickly peopled and
+highly civilized countries, promote the industries of the country of
+their adoption, and become the teachers of a higher civilization. I need
+only mention the inhabitants of the Low Countries, who in the twelfth
+century settled as agriculturists in Northern Germany,[256-1] and in the
+fourteenth and sixteenth centuries in England, as artisans; the German
+miners and inhabitants of cities, who, during the middle ages, colonized
+Hungary, Transylvania[256-2] and Poland,[256-3] and the French
+Huguenots, who fled to the Independent Protestant countries. Nearly all
+the remarkable Russian princes since Ivan III. have endeavored in this
+way to induce Germans to settle in Russia, and, for the same reason,
+Peter the Great refused to give up his Swedish prisoners of war.[256-4]
+The great Prussian rulers have cultivated the policy of immigration on
+an extensive scale, and thus maintained the original character of their
+parent provinces as the colonial land of the German people.[256-5] [256-6]
+
+Such immigrants have been generally accorded a release from taxation and
+from military duty for a number of years; a proper measure since the
+state thereby only surrendered an advantage temporarily which it
+otherwise would not have possessed at all. Where the land of the state
+receiving the immigrants was still almost valueless, it has frequently
+been made over in parcels to well-to-do colonists without
+consideration.[256-7] Assistance exceeding these limits is a very
+questionable boon. It should not be forgotten that the influx of men who
+bring no capital whatever with them, and who are not good workmen, is of
+no advantage. Nor are they always the best elements of a people who
+emigrate. They are very frequently men who, through their own fault, did
+not prosper at home, and who come to the new country, with all their old
+faults.[256-8] This is, of course not true of those who emigrate from
+their attachment to some great principle; for instance, it is not true
+of those who emigrate in search of freedom of conscience. These may
+become, provided they are in harmony with their new environment, a
+support and ornament to their adopted country.[256-9] But there is
+always danger that they may not be able to adapt themselves to their new
+economic relations, and that thus they may in consequence succumb to the
+pressure of circumstances.[256-10]
+
+Oriental despotisms have frequently endeavored to assure themselves the
+possession of newly conquered countries by transporting its most
+vigorous inhabitants in whole masses to a distant part of their old
+empire. Thus, the Jews were carried into Assyria and Babylon; the
+Eretrians into Persia; the inhabitants of Caffa by Mohammed II.; the
+Armenians by Abbas the Great. The Russians, too, undertook a similar
+transportation of people under the Ivans.[256-11]
+
+C. The prohibition of emigration, which, in the case of serfs, vassals
+and state-villeins, it seems natural enough, was very usual in periods
+of absolute monarchical power. Thus, for instance, Frederick William I.
+forbade the emigration of Prussian peasants under penalty of death.
+Whoever captured an emigrant received a reward of two hundred
+thalers.[256-12] The public opinion of modern times is very decidedly
+opposed to this compulsion, which would make the state a prison.[256-13]
+"A really excessive population would still find an exit to escape,
+namely, through the gates of death." (_J. B. Say._) The statesman, on
+the other hand, who opposes the withdrawal of political or
+ecclesiastical malcontents should take care, lest he act like the
+physician who prevents the discharge of diseased matter from the sick
+body, and causes it to take its seat in some vital organ.[256-14] Hence,
+even where emigration is considered detrimental to the country, no
+governmental condition should be attached to it, except that the person
+desiring to emigrate should give timely notice of his intention, and
+receive his passport only after it has been shown that he has discharged
+all his military duties, paid his taxes and his debts.[256-15] [256-16]
+
+The severe penalties imposed in Athens on emigration, after the defeat
+at Ch�ronea, when general discouragement threatened the state with total
+dissolution, belong to an entirely different mode of thought.[256-17]
+
+     [Footnote 256-1: _v. Wersebe_, Ueber die Niederlandischen
+     Kolonien in Deutschland, II, 1826.]
+
+     [Footnote 256-2: The immigration of the so-called Saxons
+     into Transylvania began between 1141 and 1161, in
+     consequence of the great inundations in the Netherlands.
+     Compare _Schl�zer_, Kritische Sammlungen zur Gesch. der
+     Deutschen in Siebenb., 1795.]
+
+     [Footnote 256-3: In Poland, a multitude of German colonists
+     established themselves during the thirteenth century on the
+     domains of the crown and of the church. As a rule, they
+     obtained the land in consideration of moderate services and
+     rents, which, however, did not begin to run until after
+     eight years, nor until after thirty for uncleared land. In
+     addition to this, they were governed by the German law, and
+     their communal authorities were for the most part German.
+     (_Roepell_, Gesch. von Polen, I, 572 ff.)]
+
+     [Footnote 256-4: Later, the ambassador of Peter the Great
+     endeavored to attract into Russia the Swedes, whom the
+     Russian invasion had prevented from continuing the operation
+     of their mines, saw mills, etc. (_Schlosser_, Gesch. des 18
+     Jahrhund., I, 205.) Catherine's colonization, especially on
+     the Volga and in. Southern Russia, 1765 and 1783. About
+     1830, the number of the colonists was estimated at 130,000,
+     mostly Germans.]
+
+     [Footnote 256-5: It is estimated that Frederick William I.
+     spent 5,000,000 thalers in establishing colonists. Up to
+     1728, 20,000 new families were received into Prussia alone.
+     _Stenzel_, Preuss. Gesch. III, 412 ff. Frederick the Great
+     endeavored above all to retain in the country the strangers
+     who came there periodically. Thus, the harvesters of
+     Vogtland, in the neighborhood of Magdeburg, and the Vogtland
+     masons in the suburbs of the capital (1752). Compare _v.
+     Lamotte_ Abhandlungen, 1793, 160 ff. He is said to have
+     settled 42,600 families, mostly foreigners, in 539 villas
+     and hamlets. Besides, the population of Prussia, between
+     1823 and 1840, increased by 751,749 immigrants, without any
+     positive favors shown them (_Hoffmann_, Kleine Schriften, 5
+     ff.), and the greater part of these were not very poor.]
+
+     [Footnote 256-6: In antiquity, nothing so much contributed
+     to the rise of Athens and Rome as their reception of noble
+     refugees during its earlier periods.]
+
+     [Footnote 256-7: In Russia, the Emperor Alexander, in 1803,
+     promised the colonists a full release from taxation during
+     ten years, a reduction of taxation for ten more, and freedom
+     from civil and military service for all time; besides 60
+     _dessatines_ of land per family gratis, an advance of 300
+     rubles for housebuilding, etc. and money to enable them to
+     maintain themselves until their first harvest. The provision
+     relating to Poland (1833) was much less favorable:
+     importation of movable property free of duty, freedom from
+     military duty and from taxation for six years, and perpetual
+     quit rents (_Erbzinsg�ter_) to agriculturists who owned a
+     certain amount of capital. Brazil promised immigrants, in
+     1820, land and ten years' freedom from taxation. Compare
+     _Jahn_, Beitr�ge, z. Einwanderung und Kolonisation in Br.
+     (1874), 37 ff. Hungary, in 1723, accorded settlers freedom
+     from taxation for six years and artisans for fifteen years.
+     (_Mailath_, Oesterreichische Gesch., IV, 525.) The ordinance
+     of 1858 affords too little security for non-Catholics and is
+     not adapted to farmers, but only to purchasers.]
+
+     [Footnote 256-8: Many of Frederick the Great's colonists
+     turned out very badly. They were attracted only by the
+     premiums offered, and they became dissolute after they had
+     consumed them. Many of them thought that they were to be of
+     use only by giving children to the state (_Meissner_, Leben
+     des Herrn v. Brenkenhof, 1782), and that the land donated
+     them was to be cultivated by others at the expense of the
+     state! _Dohm_ mentions villages of colonists which had to a
+     great extent changed hands four times in 20 years. Whether
+     the king would not have better attained his object had he
+     employed the younger sons of Prussian peasants as colonists,
+     _qu�re_. (_Dohm_, Denkw�rdigkeiten, IV, 390 ff.) Even
+     _S�ssmilch_ says: "A native subject is, in most cases and
+     for most purposes, better than two colonists." (G�ttl.
+     Ordnung, I, 14, 275.) Compare the work: Wie dem Bauernstande
+     Freiheit und Eigenthum verschafft werden k�nne, 1769, 16.
+     Every family of colonists in South and new East Prussia is
+     said to have cost the state 1,500 thalers. (_Weber_,
+     Lehrbuch der polit. Oekonomie, 1806, II, 172); but according
+     to _B�sching_ (Beitr�ge z. Regierungsgeschichte Friedrichs,
+     II, 239), only 400 thalers. _J. M�ser_ is strongly opposed
+     to the encouragement of immigration by direct appeals to it.
+     (P. Ph., I, 60.) According to _B�lau_,
+     Staatswirthschaftslehre, 24, only those immigrants are
+     welcome who are attracted to the country by the whole
+     character of its national institutions and circumstances. It
+     is a different matter when, for instance, the government in
+     New South Wales permits the colonists, by the payment of
+     very moderate contributions, to have their workmen, friends
+     and relations come after them from England in ships owned by
+     the government. Between 1832 and 1858, �1,700,000 were paid
+     out for such transportation. (Novara-Reise, III, 53.)]
+
+     [Footnote 256-9: Dutch Remonstrants since 1619 in Schleswig;
+     Huguenots established since 1685, in Prussia, to the number
+     of about 11,000; Waldenses in Prussia since 1686; natives of
+     Salzburg and of the Palatinate in Prussia. For a state which
+     is the representative of a religious or political principle,
+     it may be a matter of honor, and then certainly useful, to
+     afford an asylum to persons, adherents of that principle.]
+
+     [Footnote 256-10: On the German colonists whom Olavides
+     settled in Spain, in 1768 etc., see _Schl�zer's_
+     Briefwechsel, 1779, IV, 587 ff. See adv.: Ueber Sitten,
+     Temperament etc., Spaniens von einem reisenden Beobachter in
+     den J., 1777 und 1778, Leipzig, 1781, p. 260, ff.]
+
+     [Footnote 256-11: Canale Crimea, III, 346 ff. _Karamsin_,
+     Russ. Geschichte, VIII, 97, 424.]
+
+     [Footnote 256-12: Ordinance of 1721. Compare _Wolf's_
+     Vern�nftige Gedanken, � 483, who at that time highly
+     disapproved of such compulsion. Quite the reverse, the
+     Prussian Landrecht, II, Tit. 17, � 133 ff. On the other
+     hand, in Spires, in 1765 and 1784, persons of good conduct,
+     good workmen and others of sufficient means, were forbidden
+     to emigrate. Prohibition under pain of death, in Spanish
+     Milan; Nov� Constitut., 29, 145. The work: Les Int�r�ts de
+     la France maletendus (1752), 258, advocates the prohibition
+     of emigration as a species of _les majest�_.]
+
+     [Footnote 256-13: _Beccaria_, Dei Delitti e delle Pene,
+     1765, cap. 52. Similarly, _Mirabeau_, in his congratulatory
+     letter to Fred. Wil. II., and _Benjamin Franklin_, On a
+     proposed Act for preventing Emigration: Works, IV, 458 ff.
+     The Dutch were very early advocates of freedom of
+     emigration. Compare _U. Huber_, De Jure Civit., 1672, II, 4;
+     _Pufendorff_, Jus. Natur. (1672), VIII, 11. Theorizers
+     otherwise the most opposite in their views are here agreed.
+     _Jeremy Bentham_ says that properly speaking a prohibition
+     against emigration should begin with the words: We, who do
+     not understand the art of making our subjects happy; in
+     consideration that if we should allow them to take flight,
+     they would all betake themselves to strange and better
+     governed countries, etc. Des R�compenses et des Peines, II,
+     310. But also _K. L. v. Haller_, Restauration der
+     Staatswissenschaft, I, 429 ff., 508, demands most
+     strenuously that there should be freedom of emigration, for
+     the reason that every man, without prejudice to any one
+     else, might seek the state constitution which he wanted, _J.
+     Tucker_ entirely approved the English law prohibiting the
+     emigration of workmen. Compare also _J. Bodin_, De Republ.,
+     I, 6.]
+
+     [Footnote 256-14: English prohibition of emigration under
+     Charles I., 1637. _Rymer_, Foedera XX, 143. The story that
+     Cromwell and Hampden were thus detained in the country may
+     be false, however. (_Bancroft_, History of the United
+     States, I, 445.) Earlier prohibition of emigration of the
+     Norwegian king in relation to Iceland. (_Schlegel_, Gr�gas,
+     Comment Crit. p. XV.) In ancient Greece, the restriction of
+     emigration by foreign powers contributed very largely to the
+     democratization of the mother country. Something similar is
+     impending over Germany if the present emigration towards
+     North America should be much weakened by a change of
+     circumstances there.]
+
+     [Footnote 256-15: Many governments require proof that the
+     person emigrating will be admitted into his contemplated new
+     home, and that he has the means to cover the expenses of the
+     journey. The threat of not receiving back returning
+     emigrants has very little effect, for the reason that it is
+     the most thoughtless who at the moment of emigration
+     entertain the most rose-colored hopes.]
+
+     [Footnote 256-16: I shall treat of the so-called after-tax
+     (_Nachsteuer_) in the fourth volume of my System.]
+
+     [Footnote 256-17: Compare _Lycurg_., adv., Leocrat. _C�sar_
+     forbade all persons of senatorial rank to emigrate out of
+     Italy; other persons between 20 and 40 years of age were not
+     to remain absent over three consecutive years at most. For
+     the same reason, the time of military service was shortened.
+     (_Mommsen_, R. G., III, 491.)]
+
+
+SECTION CCLVII.
+
+SANITARY POLICE.
+
+D. Hygienic measures and the improvement of the sanitary police of a
+country are of the utmost importance, not only to increase the number of
+inhabitants, but also to produce the conditions of population described
+in � 246.[257-1]
+
+E. It is the indispensable condition precedent of all the measures which
+we have examined, if they would attain their end, that the means of
+subsistence of the people should be increased or at least more equally
+divided among them. Where this has been done the increase of population
+will, as a rule, take care of itself; where it has not, the artificially
+increased procreation of children can only produce new victims for the
+angel of death. A merely more equable distribution can, however, improve
+the condition of the people only in exceedingly rare cases. (� 204). As
+a rule, the diseases which it is attempted to thus cure grow worse, or
+they at least increase in extent. (� 80, ff., 250.) It is quite
+different, of course, when the more equable distribution coincides with
+an absolute growth of the nation's economy. We shall see, later, that,
+for instance, the freedom of land alienation and of industrial pursuits,
+when not accompanied by an important advance in the corresponding
+branches of economy may do more harm than good; but that under favorable
+circumstances a multitude of dormant forces are thereby awakened, and
+that then the national-economical dividend may be increased much more
+than the divisor. (� 239. _Roscher_, National�konomik des Ackerbaues, �
+99, 139 ff.)
+
+     [Footnote 257-1: _Bacon_ in his History of Life and Death,
+     or of the Prolongation of Life, hopes the better physicians
+     "will not employ their times wholly in the sordidness of
+     cures, neither be honoured for necessities only; but that
+     they will become coadjutors and instruments of the divine
+     omnipotence and clemence in prolonging and renewing the life
+     of man."]
+
+
+SECTION CCLVIII.
+
+MEANS OF LIMITING THE INCREASE OF POPULATION.
+
+A. The means which consists in rendering marriage less easy by
+legislation is surrounded with peculiar difficulties in densely
+populated countries, which are always highly civilized. The state would
+have here to swim against the stream, and it would be generally a much
+less difficult task to enlarge the field of food. If there remained from
+a former period any inducements held out to promote marriage, it is self
+evident that they should now be discontinued. A voluntary bachelor must
+now no longer be considered as a man who permits one more woman to
+become an old maid, but as one who facilitates marriage to another
+couple.[258-1] On the other hand, it should not be forgotten that, for
+men, generally, marriage is not only an occasion of increased outlay,
+but also an incentive to increased activity and greater economy.[258-2]
+Many states have endeavored to condition the founding of a family by
+requiring evidence that the father has a prospect of being able to
+support one.[258-3] Distinguished theorizers accede to this condition,
+inasmuch as they deny the right of over-population.[258-4] But,
+unfortunately, it is impossible, except in a few extreme cases, to
+assert or deny a prospect of being able to support a family.[258-5] How
+easily is the most remunerative power of labor destroyed by physical or
+mental disease. Scarcely less subject to change is the so-called certain
+opportunity of acquisition afforded by a profession or a trade, when it
+is not guarantied by the possession of considerable capital or of landed
+property, or by some legal privilege. The amount of property required by
+many laws is so small that it alone would suffice to support the family
+only for a few years.[258-6] And yet it has been generally provided that
+the proof of such a property gave one an unconditional right to
+establish a domicile and to marry. It is only where this is wanting that
+special consent is required. But who shall exercise this right of
+consent? The parish, perhaps, because on it the impoverished family
+would fall as a burthen. But it is to be feared that the course of
+procedure here would be too severe. Local narrow-heartedness might
+refuse the right of domicile to skillful and industrious candidates, who
+are in the best situation to maintain a family, but whose competition
+the older members of the parish might dread.[258-7] Hence, in most
+countries, the parish is treated as a party, on whose protest against
+the marriage the state itself decides[258-8] If the state authorities
+were to give the immediate decisions in such cases, we might expect, in
+ordinary times, a liberality which would frustrate the object of the
+law; but sometimes, also, considerable chicanery on grounds of so-called
+higher police.
+
+Where there still exist classes and corporations with real independence,
+the members of which still attach a real value to the body, the matter
+takes care of itself. The journeyman, for instance, voluntarily retards
+his marriage until he has become a master workman, and once he has
+attained that degree, he "works the golden mine of his trade."[258-9]
+But wherever a numerous proletariat exists, the individuals of which
+have no better future to expect, whatever their present sacrifices and
+self-denial, and who know nothing of class-wants or class-honor,
+prohibitions of marriage are severely felt, and are far from being well
+enforced.[258-10] The rule which excites least opposition is the fixing
+of a normal age for marriage, under which males should not be allowed to
+undertake its engagements.[258-11] Of all privileges those attaching to
+age are viewed with least aversion. Something similar is effected in
+most countries to-day by military conscription, which, on this account,
+in young countries, has a very restrictive effect on the increase of
+population.[258-12] The best means against thoughtless marriages
+certainly consists in increasing the measure of individual wants (�
+163); assuming, of course, that the added wants are proper and
+worthy.[258-13] There is always the consideration that all limitation of
+marriage, even voluntary self-limitation, by decreasing or postponing
+marriage, may prove disastrous to morals. It should, however, not be
+forgotten that there are other sins besides impurity, and that complete
+poverty constitutes one of the worst of temptations. Especially is it
+not the angel guardian of chastity.[258-14]
+
+In England[258-15] and France, all governmental hinderances to marriage
+have long since ceased, and in Prussia, at least all general police
+hinderances; and we can by no means say that the consequences have been
+evil. On the other hand, no favorable results as to their influence on
+pauperism can be shown statistically from the restrictive laws of
+W�rttemberg. Rather do statistics point here to the unfavorable probable
+result of an increase of illegitimate births.[258-16] According to the
+law of the North German Confederation of 1868, the contract of marriage,
+except in the case of soldiers, officials, clergymen and teachers, is so
+free, so far as police influence is concerned, that even actual poverty
+is no impediment.[258-17] [258-18] [258-19]
+
+     [Footnote 258-1: In Ireland, the unsalaried condition of the
+     Catholic clergy who depended entirely on marriage fees (as
+     high as �20 being paid by poor farmers. Quart. Rev. No.
+     289), baptismal fees, burial fees, etc., operated as an
+     artificial stimulus to the increase of population under the
+     most unfavorable conditions. See � 254.]
+
+     [Footnote 258-2: It is very noteworthy in this connection
+     that married people commit relatively fewer crimes than
+     single persons. Thus, for instance, in Prussia, in 1861, of
+     every 1,000 unmarried men over 16 years of age, 1.18 were
+     sent to the house of correction; of every 1,000 married men,
+     only 0.59; of every 1,000 divorced, 13.71! (Preuss. Statist.
+     Zeitschr., 1864, 318 seq.) In Austria, 1858-59, there was one
+     person under sentence in every 203 unmarried persons, in
+     every 669 married, and in every 1,053 widows and widowers.
+     Of the married, there was a larger proportion of criminals
+     among the childless than among those with children (49.8 per
+     cent. against 42.6 per cent.). Compare _v. Oettingen_,
+     Moralstatistik, 759. This evidence is all the stronger
+     since, circumstances being otherwise the same, fathers of
+     families are harder pressed by cares for food than single
+     persons.]
+
+     [Footnote 258-3: In W�rtemberg, the authorities were for the
+     first time enjoined in 1633, to dissuade people from
+     untimely marriages; in 1712 the consent of the authorities
+     to a marriage was made dependent on the evidence of a
+     religious education and the capacity to support a family.
+     Between 1807 and 1828, all restrictions on marriage because
+     of incapacity to support a family were removed. According to
+     the Bavarian Penal Code of 1751 (I, 11, � 7), persons who
+     had married without governmental authorization, and who
+     could not afterwards support themselves except by begging,
+     were sentenced to at least one year in the workhouse and to
+     be whipped once a week. Only a short time ago scarcely any
+     one in Bavaria had a real and unquestionable right to marry.
+     (_Braun_, Zwangsc�libat f�r Mittellose in _Faucher's_
+     Vierteljahrsschrift, 1867, IV, 8.) Austrian law relating to
+     the proof of the certainty of maintaining one's self by
+     one's trade etc: 12 Jan., 1815; 4 Sept., 1825.]
+
+     [Footnote 258-4: _R. Mohl_, in the 3d edition of his
+     Polizeiwissenschaft, I, 152 ff., requires proof of the
+     possession of a sufficiency of food, at least of the means
+     to begin house-keeping. According to _Marlo_, Welt�konomie,
+     III, 84 ff., and _Sch�ffle_, Kapitalismus und Socialismus,
+     689 ff., the compulsory insurance of widow and children
+     should precede marriage.]
+
+     [Footnote 258-5: Thus the W�rttemberg law of 1833 prohibits
+     the marriage of those who are under prosecution on account
+     of repeated thefts, fraud, or carrying on the trade of a
+     beggar; also all such as have been criminally punished
+     within the two next preceding years, and all who within the
+     three next preceding years have received alms from the
+     public treasury, except in cases of misfortune, of the
+     causes of which they were innocent. The Bavarian law of
+     April 16, 1868, gives the parish a right of veto. According
+     to the royal Saxon ordinance of 1840, male recipients of
+     alms are permitted to marry only when their marriage makes
+     an important amelioration of their circumstances probable,
+     and does away with the necessity of public assistance in the
+     future.]
+
+     [Footnote 258-6: During Iceland's middle age, prohibition of
+     marriage for all who did not possess at least from 100
+     ounces of silver or 600 ells _vadhmal_. (_K. Maurer_,
+     Island, 443 seq.) In Bavaria (July 1, 1831), the right of
+     domicile is made to depend on a landownership free of debt,
+     and a _steuersimplum_ of from 1 to 2 florins (in towns more)
+     in country parishes; on the real (reales) right of carrying
+     on a trade, or on a personal trade-concession sufficient for
+     support. A tax of 1 florin in 1852 meant about 1,200 florins
+     worth of property. In other cases it depended on whether the
+     parish recognized the existence "complete and permanent of
+     the means of livelihood." Here good repute and the
+     possession of a considerable savings bank deposit were to be
+     particularly considered. In cases of competition, discharged
+     soldiers who had served out their term, and good servants of
+     15 years service were to be preferred. In W�rttemberg (1833)
+     a sufficient guaranty that a person contemplating marriage
+     possessed the means of support was: the personal capacity to
+     exercise a liberal art or to follow a scientific career, to
+     engage in commerce or agriculture, or some branch of
+     industry, or follow a trade, with sufficient income
+     therefrom to support a family; or the possession of a
+     property, according to locality, of 1,000, 800 or 600
+     florins. The law of May 5, 1852, was more exacting, and
+     required, besides personal competency, evidence that one's
+     calling yielded a sufficient income, as well as of an amount
+     of property free of debt, of the value of from 150 to 200
+     florins. In Baden (1831) a property considered sufficient to
+     insure the means of livelihood amounted in the four largest
+     cities to 1,000 florins, in 10 smaller ones to 600; in the
+     remaining communities to 300 florins. In the electorate of
+     Hesse, the amount (1834) was from 150 thalers (for small
+     country communities) to 1,000 thalers. (Kassel.) An
+     irreproachable character is required by many laws (in
+     W�rttemburg, since 1832, the good reputation of both
+     parties), and the community is empowered to dispense with
+     the other material conditions. Long-continued savings-bank
+     deposit speaks well for the parties' competency to support a
+     family, because it bears testimony to an excellent economic
+     disposition.]
+
+     [Footnote 258-7: Remarkable instance in _Rau_, Lehrbuch, II,
+     � 15 a., note b.]
+
+     [Footnote 258-8: In Bavaria, in 1808, the decision reserved
+     to the royal boards of police.]
+
+     [Footnote 258-9: Those callings in which a certain _esprit
+     de corps_ prevails such as that, for instance, of officials
+     and officers, submit willingly to restrictions on marriage
+     authoritatively imposed. The Catholic clergy submit even to
+     a full prohibition of marriage. Such measures uniformly
+     strengthen the isolation of the class from the nation as a
+     whole. It is well known that, during the middle ages,
+     theological views on the meritoriousness of all self-denial
+     made voluntary celibacy very common. The Franciscan order
+     counted at one time 150,000 monks and 28,000 nuns, the
+     so-called members of the third order, or penitents, not
+     included. (_Helyot_, Gesch. der Kloster und Ritterorden, V,
+     33.) The severity of the laws relating to fasting might
+     also, according to _Villerm�_, be regarded as a "preventive
+     check." Compare _supra_, � 240, note I.]
+
+     [Footnote 258-10: The Prussian law authorizing parents and
+     guardians to put an interdict on marriages, because of a
+     want of the necessary means, of vicious habits, disease,
+     etc., may constitute a check in very good families and
+     families of the middle class, but scarcely so in proletarian
+     circles.]
+
+     [Footnote 258-11: Besides W�rttemberg, Baden also prescribed
+     25 years; in Saxony and Hessen-Darmstadt, 21 sufficed; in
+     Prussia even 18. _Sch�ffle_ advocates a minimum age of 25
+     years for males and 22 years for women (loc. cit.).
+     Similarly, _Mohl_, loc. cit.]
+
+     [Footnote 258-12: Why, hitherto, in Sweden, by way of
+     exception, military service promoted early marriage, see
+     _Wapp�us_, Bev�lkerungsstatistik, II, 357. In France, on the
+     other hand, the increase of population since 1815 has been
+     almost exactly in the inverse ratio of the strength of the
+     military levy. Acad. des Sc. Morales et Polit., 1867, II,
+     159.]
+
+     [Footnote 258-13: _Malthus_, Principle of Population, 10,
+     ch. 13.]
+
+     [Footnote 258-14: _Malthus_, Principle of Population, IV,
+     ch. 4, 5. It is a great error to suppose that the number of
+     immoral acts increases and decreases with the frequency of
+     temptation. In Ireland, farmers very frequently keep their
+     men servants and maid servants even after the latter have
+     married. But the very facility with which a fall is
+     legalized, increases very largely the number of reckless
+     marriages. (_Meidinger_, Reise, II, 187 seq.) In the country
+     about G�ttingen also, where the people marry much earlier on
+     an average than in that about Calenberg, illegitimate births
+     are much more frequent.]
+
+     [Footnote 258-15: Even no other legal obstacle which could
+     make marriage more difficult occurred to _Malthus_, except
+     that which consists in the refusal of public assistance
+     after the expiration of a fixed period of time. (Principle
+     of Population, IV, ch. 8; V, ch. 2.)]
+
+     [Footnote 258-16: See the tables in the T�binger
+     Zeitschrift, 1868, 624 ff. Thus, formerly, in Rhenish
+     Bavaria, where there was complete liberty allowed in this
+     matter, the poor rates compared with the population, were
+     only 34.6 per cent. of the average in the rest of Bavaria;
+     and the number of illegitimate births was not so unfavorable
+     by one-half. (_Rivet_, in the Archiv der polit. Oekonomie, N.
+     F., I, 39.) The Bavarian law of the 16th of April, 1868,
+     which provides that the community or parish can object to a
+     person's marriage only on account of unpaid parish taxes or
+     poor rates (art. 36) largely increased the number of
+     marriages and diminished the illegitimate births; in the
+     first year to 22.2 per cent., in the second to 17, and in
+     1873 to 13.2 per cent. (Allg. luth Kirchenztg., 12 M�rz,
+     1875.) According to official statement, this law did more to
+     improve the condition of workmen in the towns than any other
+     cause. Compare _Thudichum_, Ueber unzul�ssige Beschr�nkungen
+     des Rechts der Verehelichung, 1868. Per contra, _E.
+     Sch�bler_, Ueber Niederlassung und Verehelichung in den
+     verschiedenen deutschen Staaten, 1855.]
+
+     [Footnote 258-17: _Reinhold_ has recommended the direct
+     limitation of the procreation of children by the process of
+     _infibulation_ practiced on boys fourteen years of age and
+     continued until they arrive at a marriageable age or are
+     able to support illegitimate children. An der Uebervolkerung
+     in Mitteleuropa, 1827. Ueber die Population und Industri�,
+     oder Beweis dass die Bev�lkerung in hoch kultivieren Landern
+     stets den Gewerbfleiss �bereile, 1828. Ueber das menschliche
+     Elend, welches durch Missbrauch der Zeugung herbeigef�hrt
+     wird, 1828. Das Gleichgewicht der Bev�lkerung als Grundlage
+     der Wohlfahrt, 1829. The ancients proceeded sometimes in a
+     similar way in the case of slave actors: _Juvenal_, VI, 73.
+     Compare _Winckelmann_, Antichi inediti, Tav. 188.]
+
+     [Footnote 258-18: The obstacles formerly placed in many
+     countries in the way of the marriage of Jews of allowing
+     only the first-born to marry, and this only when a vacancy
+     occurred in the number of families by death (Austria), was
+     not based on a solicitude about population, but on
+     religio-national intolerance, in part also on commercial
+     police grounds.]
+
+     [Footnote 258-19: _Fisher_, Gesch. des deutschen Handels
+     (1785 ff.), still considers war as a remedy for
+     over-population, but _M. Wirth_, Grundz�ge der N. Oek.,
+     rightly remarks that war destroys not so much children,
+     women and the infirm as the most productive of the male
+     population, and immense amounts of capital.]
+
+
+SECTION CCLIX.
+
+EFFECTS OF EMIGRATION.
+
+B. It is sufficiently evident that emigration from an over-populated
+country[259-1] may be attended with good consequences, especially when
+it takes place in organized bodies.[259-2] There is little danger that
+one who knows how to work and pray will go to the bad in a young
+agricultural colony. In a wilderness which has not yet been cleared, the
+greater number of proletarian vices spontaneously disappear. There is
+here no opportunity for jealousy or theft; little for intemperance, the
+gaming table, licentiousness or quarrelsomeness. Here labor is a
+necessity, and the rewards of industry and saving soon take a palpable
+shape. As the emigrant, in such a situation, can scarcely help marrying,
+children far from being a burthen, soon become companions to their
+parents in their solitude and, later, helpmates in business. The
+colonist belonging to the lower middle class is most certain of
+improving his condition. It may, indeed, require many and toilsome years
+before he can feel comfortable himself; but his children who would
+probably have led a proletarian life in the mother country may calculate
+with certainty on future well-being. The father's small capital which
+the outlay for education alone would have exhausted at home, here
+becomes the seed of a number of prosperous households.[259-3] It is
+otherwise with the mass of the people who remain at home. (Compare �
+241.)[259-4] It is a matter of much more difficulty than is generally
+supposed by those who have not made a study of the matter, that the
+yearly emigration from countries like Germany should counterbalance the
+excess of births over deaths.[259-5] It is not to be supposed that men
+who are really useless at home should be of any service in the colonies.
+How violently have not English colonies opposed the advent of settlers
+from the poorhouses of the mother country. The classes which are
+readiest to emigrate: idlers, fickle characters, fathers of families
+with altogether too many children, artisans who by a revolution in
+industry have lost the means of making a livelihood, are precisely those
+who find it most difficult to obtain employment on the other side of the
+water.[259-6] Most colonies refuse to receive persons over forty years
+of age at their own expense. But a young man intellectually and
+physically able to work, can always make his way even in the old world;
+only the weaker succumb under the pressure of over-population. Lastly,
+it should be considered what an amount of capital is required for
+purposes of emigration and settlement. If emigrants, on the average,
+take more capital with them than is estimated to be the _per capita_
+amount of capital possessed by those remaining at home,[259-7] the
+consequence would be that, as a result of this very successful
+emigration, the ratio of consumers to the amount of capital in the
+country would become more and more unfavorable. The emigrating portion
+of the country might experience the advantage of this, but the great
+mass of the population remaining at home would become poorer in capital
+and in vigorous men,[259-8] and richer in the comparatively needy. The
+comfortless contrast between colossal wealth and beggarly want could
+only be thereby increased, since it is almost exclusively the lower
+middle class who emigrate to agricultural colonies. The over-rich, as a
+rule, will not, and proletarians can not, go thither.[259-9] [259-10]
+
+     [Footnote 259-1: Compare _R. Mohl_, in the T�binger
+     Zeitschrift f�r Staatswissenschaft, 1847, 320 ff.;
+     _Roscher_, National�konomische Ansichten �ber die Deutsche
+     Auswanderung in the Deutschen Viertejahrsschrift, 1848, No.
+     43, 96 ff., the same author's Kolonien, Kolonialpolitik und
+     Auswanderung, 2 Aufl., 1856, 342 ff.; _J. Fr�bel_, Die
+     Deutsche Auswanderung und ihre Kulturhistorische Bedeutung,
+     1858.]
+
+     [Footnote 259-2: Unfortunately, emigration in groups has
+     recently become very rare, whereas, during the middle ages,
+     it took place preponderantly, first in armies and then in
+     communities.]
+
+     [Footnote 259-3: According to parliamentary investigations,
+     the Irish laborer in Australia, Canada, etc., improves in a
+     few years to such an extent that he can scarcely be
+     distinguished from the Anglo-Saxon. He becomes industrious,
+     self-reliant etc. (Edinb. Rev., 1950, 25.) In North America,
+     however, the Irish seldom become really well off, or occupy
+     a position of consequence in society. (_G�rtz_, Reise, 88.)]
+
+     [Footnote 259-4: _E. G. Wakefield_, in other respects so
+     intelligent a writer on the theory of colonization, is of
+     opinion that every nation might, by giving a proper
+     direction to emigration, establish such a density of
+     population as it desired. Thus, for instance, if there were
+     10,000 marriages contracted every year in a country, and it
+     was provided that each of these 10,000 couples should be
+     sent to some colony immediately after marriage, the whole
+     mother country would become extinct in from 60 to 70 years.
+     This extreme is of course not desired by any one; but the
+     way to be followed in order to attain a desirable limit is
+     hereby pointed out. That emigration has in so few instances
+     checked the advance of population, Wakefield accounts for by
+     the fact that the means furnished to emigration have to a
+     certain extent been wasted, and that old men, children,
+     etc., who either had no influence on population as yet, or
+     could have no more in future, constituted a large proportion
+     of those who left the country. (England and America.)
+
+     Evidently an important consideration is here omitted, viz.:
+     that there is no such a thing as a normal year of marriages,
+     etc. If, for instance, all males were to wait until their
+     30th year, and all females until their 20th, to enter the
+     married state, and that the government were to send all
+     competent persons as soon as they had reached this age to
+     America, what would be the consequence? Numberless
+     situations affording the means of supporting a family would
+     be vacant, and a number of young men of 29 and of young
+     women of 19 would be induced to marry, etc. The number of
+     children to a marriage in England in 1838-44 was 4.13;
+     1845-49, 3.96; 1850-54, 3.26; 1855-59, 4.15. (Journal des.
+     Econ., Oct., 1861.)]
+
+     [Footnote 259-5: _Benjamin Franklin_, in 1751, estimated the
+     aggregate number of English inhabitants in the North
+     American colonies at 1,000,000, of whom only 80,000 had
+     immigrated into the country. Hence, from 1790 to 1840, the
+     United States, the promised land of European emigrants,
+     received only about 1,500,000 emigrants. From 1820 to 1859,
+     the number (according to _Bromwell_ and _H�bner_) was
+     4,509,612; according to a report of the New York Chamber of
+     Commerce (1874), 9,054,132 since 1824. An annual immigration
+     of 100,000 was reached for the first time in 1842. According
+     to the census of 1870, there were in the United States
+     5,567,229 persons born in foreign countries, of which number
+     1,690,410 were born in Germany, 1,855,827 in Ireland, and
+     5,550,904 in England. The aggregate emigration from the
+     British empire, which unquestionably possesses most colonies
+     and the largest marine, was, on an average, between 1825 and
+     1835, only about 55,000; 1836 to 1845, over 80,000; in 1845
+     alone, over 93,000, while the yearly excess of births over
+     deaths between 1841 and 1848, according to _Porter_, was in
+     England and Wales alone, on an average, 169,000. During the
+     succeeding years emigration received an extraordinary
+     stimulus (which changed the proportion) in the influence of
+     the discovery of the Californian and Australian mines, and
+     in the Irish famine. Hence the emigration was, at least, in
+
+          ================================
+              _in_           | _Persons._
+          -------------------+------------
+           1847,             |  258,000
+           1848,             |  248,000
+           1849,             |  299,000
+           1850,             |  280,000
+           1852, (maxim.)    |  368,000
+           1853,             |  329,000
+           1855,             |  176,000
+           1857,             |  212,000
+           1858-60, (average)|   96,000
+           1862,             |  121,000
+           1863,             |  223,000
+           1865,             |  181,000
+           1867,             |  105,161
+           1870,             |  202,511
+           1871,             |  174,930
+          ================================
+
+     while the excess of births over deaths (in Great Britain
+     alone) amounted, in 1856, to 309,000. Between 1815 and 1870,
+     there emigrated from the United Kingdom to the United
+     States, 4,472,672 persons; to the British North American
+     Colonies, 1,391,771; to Australia, 988,423; to other points,
+     160,771; an aggregate of 7,013,637. (Statist. Journal, 1872,
+     115.) On the other hand, between 1861 and 1871, 543,015
+     persons either returned or immigrated to the United Kingdom.
+     It is estimated, (according to _H�bner's_ Jahrb. der
+     Volkswirthschaft und Statistik, 263 ff.; VIII, 222, and the
+     Rudolst. Auswandererzeitung) that in no year before 1844
+     were there more than 33,000 emigrants from Germany. On the
+     other hand, in
+
+         ====================================
+             _in_           |  _At least._
+         -------------------+-----------++---
+          1844,             |         43,000
+          1845,             |         67,000
+          1846,-            |         94,000
+          1847,             |        109,000
+          1848,-            |         81,000
+          1849,             |         89,000
+          1850,-            |         82,000
+          1851,             |        112,000
+          1852,             |        162,000
+          1853,             |        156,000
+          1854, (maxim.)    |        250,000
+          1855.             |         81,000
+          1856.             |         98,000
+          1857,             |        115,000
+          1858-61, (average)|          4,620
+          1866,             |        137,000
+          1867,             |        151,000
+                            |
+          By Hamburg and    |
+            Bremen alone--  |
+          1867-71, (average)|33,355 & 48,296
+          1872,             |57,621 & 66,919
+          1873,             |51,432 & 48,608
+          1874,             |24,093 & 17,913
+         ====================================
+
+     while the natural increase of population in Prussia alone
+     (1843-55) amounted to almost 150,000 per annum; in the
+     kingdom of Saxony (1834-49), to over 18,000; in
+     Austro-Germany and the five German kingdoms together,
+     305,000. (_Wapp�us_, Bev�lkerungsstatistik, I, 133.) In New
+     York alone, in 1852, 118,600 Germans arrived; in 1853,
+     119,500; in 1854, over 178,000. That, at present, emigration
+     is, on the whole, so much more frequent than formerly, is
+     accounted for by the largely improved means of
+     communication. However, it was estimated a century ago, that
+     Europe sent at least 100,000 persons per annum to the East
+     and West Indies. Between 1700 and 1719, an aggregate of
+     105,972 persons emigrated to the Dutch East Indies; between
+     1747 and 1766, 162,598. (_Saalfeld_, Gesch. des Holl�nd.
+     Ostindiens, II, 189.) It should not be ignored, however,
+     that the readiness to forsake the fatherland, which only a
+     short time ago was so usual in Germany (in England, it
+     prevails chiefly among the Irish), justified the greatest
+     solicitude for the roots of German national life. How little
+     Germany really suffers from over-population, is shown
+     especially by the circumstance that, for instance, in
+     Prussia, it is precisely the most densely populated
+     districts to which immigration is largest. Compare _v.
+     Viebahn_, Zollverein. Statist, II, 242.
+
+     According to _C. Negri_, about 40,000 Italians emigrate
+     every year at present; and it is said that there are, in
+     Turkey, Egypt and Tunis, 70,000; in Peru, 14,000, and in
+     Buenos Ayres, 84,000 Italians living. (I, Jahresbericht der
+     Hamburg, geogr. Gesellsch., 1874.) In other Romanic and
+     Slavic countries emigration is as yet insignificant. On the
+     other hand, there were, in 1870, 214,574 native
+     Scandinavians in the United States.]
+
+     [Footnote 259-6: While the most active demand for labor, for
+     instance, existed in Australia generally, three government
+     ships carrying emigrants arrived: one with English
+     agricultural laborers, the second with former factory hands,
+     the third with Irish. The agricultural laborers found places
+     very rapidly a few days after their arrival; the factory
+     hands did only tolerably well, while of the poor Irish not
+     one-half could find anything to do, and became a burthen on
+     the benevolence of the public. (_Merivale_, Lectures on
+     Colonization and Colonies, II, 30 ff.)]
+
+     [Footnote 259-7: It is estimated that the first 21,200
+     settlers of New England brought about $1,000,000 with them.
+     (_Bancroft_, Hist. of the United States.) The 50,000
+     emigrants who came to Quebec in 1832 were estimated to be
+     worth $3,000,000. It is thought that German emigrants to
+     America, bring with them, on an average, 280 thalers, to
+     which must be added 40 thalers passage money. This seems
+     very high, while German estimates are generally too low,
+     because no emigrant has any interest to overestimate his
+     property, but frequently to underestimate it. Thus, for
+     instance, in 1848-49, 8,780 persons emigrated from Prussia
+     with 1,713,370 thalers of property, i. e., 195 thalers each.
+     (Amtl. Tabellen, f., 1849, I, 290.) It is said that between
+     1844 and 1851, 45,300 persons emigrated from Bavaria with
+     governmental consent, and that they carried with them
+     property to the amount of 19,233,000 florins; that is, 424
+     florins each. (Beitr�ge zur Statistik des Kgr. Bayern, III,
+     322 seq.) Here the average amount of means carried away by
+     emigrants seems to decrease; a sign that the mass of those
+     emigrating come from successively lower strata of the
+     population. (_Hermann_, Bewegung der Bev�lk., 26 seq.)
+
+     A still smaller amount of capital would suffice for the
+     purpose of emigration itself. Persons who settled in Canada
+     (1823) cost the English nation �22 per capita, which amount
+     provided them with cows, seeds, agricultural implements,
+     help in building, and food for twelve months. According to
+     the Edinburg Rev., Dec., 1826, only �15, 4s. were necessary
+     for the same purpose. If it be borne in mind that many of
+     these settlers afterwards caused five times as many
+     relatives to come over at their own expense, the necessary
+     outlay per capita would seem very small indeed; frequently
+     not more than one year's maintenance in the poorhouse would
+     have cost. Almost �1,000,000 are sent every year from the
+     United States through banks and emigration bureaus, by
+     emigrants, to the United Kingdom, to bring over their
+     relatives. (Statist. Journal, 1872, 386.)]
+
+     [Footnote 259-8: It is said that in Mecklenburg agricultural
+     labor has much deteriorated because the strong men emigrate
+     and because the old and children remain at home.
+     (_Bassewitz-Schumacher_, Comm. Bericht �ber die Verh�ltnisse
+     der l�ndl. Arbeiterklassen, 1873.)]
+
+     [Footnote 259-9: _J. S. Mill_, indeed, thinks that even
+     where there is a larger emigration of capital than of men,
+     the combined pressure which both exert on the natural forces
+     of the country emigrated from must become less. (Principles,
+     IV, ch. 5, 1.) Compare _Hermann_, loc. cit. 28 ff. _Hermann_
+     also shows very clearly how emigrants to America would
+     frequently like to return; but the expense of returning
+     deters them from the undertaking, and they manage to get
+     along by great effort, which, however, would have afforded
+     them a livelihood if they had remained at home. Staatsw.
+     Unters. II, Aufl. 480.]
+
+     [Footnote 259-10: Against real over-population, the
+     emigration of women would be much more effective than that
+     of men; and yet the emigration of the latter occurs much
+     less frequently in large numbers. Thus, between 1853 and
+     1858, 3,694 males emigrated from Saxony and only 2,609
+     females. Between 1866 and 1874, there were 1,754,231 male
+     immigrants to the United States, and only 1,147,446 females.
+     According to _R�melin_ (Allg. Ztg., December, 1865), the
+     large emigration from W�rttemberg produced by the years of
+     scarcity--1850 ff.--left such a preponderance of women that
+     1/6 of all the young women who have reached a marriageable
+     age at present, would remain unmarried, even if all the
+     marriageable young men were to engage in matrimony. Thus
+     negative emigration does very little to cure the social
+     disease of involuntary celibacy.]
+
+
+SECTION CCLX.
+
+COLONIST EMIGRATION.
+
+All these dangers disappear when the portion of the nation which has
+emigrated continues economically connected with the body of the nation
+remaining at home. (Colonizing emigration.) Here emigration not only
+provides "elbow room" in the mother country, but there arises at the
+same time an increased demand for manufactured articles, an increased
+supply of raw material, by means of which an absolute growth of
+population is made possible.[260-1] England has hitherto enjoyed these
+advantages to the fullest extent, Germany scarcely at all. German
+emigrants to Russia, America, Australia, or Algiers, were, together with
+all they have and are, for the most part lost to their fatherland. They
+become the customers and suppliers of foreign countries, and frequently
+enough the competitors and even enemies of Germany.[260-2] [260-3]
+
+It might be very different if the stream of German emigration was
+directed towards German colonies for instance, as happened in later
+medieval times, towards the fertile but thinly populated parts of
+Hungary, towards the provinces of Austria and Prussia; perhaps, as List
+wished, towards those parts of Turkey which, God willing, shall yet
+constitute the inheritance of the German people. Thus, through the
+instrumentality of emigration, might a new Germany arise, which would
+directly or indirectly and necessarily ally itself to the old,
+politically, and at the same time constitute the surest bulwark against
+the danger from Slavic power.
+
+Politico-economically, this country might be utilized by Germany as the
+United States uses the Mississippi valley and the Far West, especially
+as concerns the exclusiveness of the use. It is true, that emigrants
+could be invited to these quarters in good conscience only when the soil
+had been prepared for them. They should find there, on their arrival,
+complete legal security, especially for the landed property to be
+acquired by them; likewise, at least, full personal, religious, and also
+commercial freedom.[260-4]
+
+It may be asked, whether there are places in the other quarters of the
+world adapted to German colonization in the higher sense of the word.
+These should of course be countries adapted to agriculture as practiced
+by the Germans,[260-5] with an easily accessible coast and provided in
+the interior with navigable streams. Here the Germans should be able not
+only to live together in large numbers, but the rest of the population
+should be inferior to them in political training and in national
+feeling. Otherwise, there would in time be danger of their losing the
+German character and feeling.[260-6] The difficulty of establishing
+German colonies in the southern temperate parts of Chili and Brazil
+would be aggravated by the very same causes which prevented the creation
+of a German navy for centuries; and they would almost certainly have to
+calculate on the jealousy of all other colonial powers and of the United
+States.[260-7] We should not forget that from Raleigh's time to the
+present, almost every speculation having for its object the founding of
+a colony, whether originating with individual capitalists or with
+joint-stock companies, has been, considered from a mercantile point of
+view, a failure. The fruits of new colonization are generally reaped in
+the succeeding generation; and such delay is scarcely in harmony with
+the ideas of our own times. Almost every settlement has had its critical
+period when the settlers almost despaired. This produced less harm in
+the 17th century; for they were for the most part compelled to
+persevere. In our day, they would probably disband and go in search of
+an easier life in colonies already existing. And yet, Germany must make
+haste if it would not soon see the last appropriate locality occupied by
+other and more resolute nations.[260-8] [260-9]
+
+     [Footnote 260-1: As _Torrens_ shows there is no kind of
+     trade that so much promotes production, or which is so
+     capable of growth as the exchange of the means of
+     subsistence and raw materials against manufactured articles.
+     The Budget: On Commercial and Colonial Policy, 1841 ff.]
+
+     [Footnote 260-2: Care should be taken not to allow one's
+     self to be misled here by relative numbers. In the United
+     States, the amount of imports was, from--
+
+     ===========================================================
+                 |_The British_|  _France._  | _Germany without_
+                 |  _Empire._  |             |   _Austria._
+     ------------+-------------+-------------+------------------
+     1840-41,    | $51,000,000 | $24,000,000 |    $2,450,000
+     1849-50,    |  85,000,000 |  27,600,000 |     8,780,000
+     1859-60,    | 138,600,000 |  43,200,000 |    18,500,000
+     ===========================================================
+
+     Hence, absolutely, the German exports increased in 19 years
+     only about $16,000,000; the French (without any emigration),
+     over $19,000,000; the English, more than five times the
+     German. Of the 30,633 emigrants who sailed from Bremen in
+     1874, only 72 did not go to the United States. (D. Ausw.
+     Ztg., 5 Jul., 1875.) The total exports of the United Kingdom
+     to its colonies amounted, 1840-44, to an average value of
+     �7,833,000; 1865-69, to �27,146,000; while those to foreign
+     countries amounted, during the same periods of time, to only
+     from �28,871,000 to �93,558,000. English colonial trade
+     amounted, in 1866, to �6 2s. per capita of the colonial
+     population; the trade with the East Indies, to only 9s. 7d.
+     per capita of the East Indian population. (Statist. Journal,
+     1872, 123 ff.)]
+
+     [Footnote 260-3: There has hitherto been little to rejoice
+     over in the condition of German emigrants. The greater
+     number of them had received so little education that they
+     were by no means in a way to oppose the weapons of attack of
+     Anglo-Americans. The glorious literature of their old home
+     scarcely existed for them. Almost the only national
+     peculiarity which they held to with any tenacity was the
+     disposition to a want of union among themselves. Hence they
+     were necessarily de-Germanized in a few generations, after a
+     toilsome and quarrelsome period of transition. How seldom,
+     even in Ohio, did German names occur in the list of public
+     officials, while in New York the number of German names on
+     the poor list is very considerable. The situation, however,
+     seems to have improved in modern times, and the national
+     coherency and political power of the mother country have
+     gone hand in hand with the revival of attachment on the part
+     of the emigrants to the land of their nativity. How
+     beautifully was this attachment manifested during the
+     Franco-Prussian war in 1870-71!]
+
+     [Footnote 260-4: Compare _Fr. List_, in the D.
+     Vierteljahrsschrift, 1842, No. IV. _Dieterici_, �ber Aus-
+     und Einwanderungen, 1847, 18.]
+
+     [Footnote 260-5: No Mosquito-coast!]
+
+     [Footnote 260-6: How tenaciously have the Germans held to
+     their nationality in Transylvania and the Baltic provinces,
+     and how rapidly they lost it in Pennsylvania!]
+
+     [Footnote 260-7: On emigration to Brazil, see _v. Tschudi's_
+     report of Oct. 6 to the Swiss parliament, 1860.]
+
+     [Footnote 260-8: Think only of the project of the Belgian
+     East Indian Company, which Austria could not carry out at
+     the beginning of the preceding century. Proposition by
+     _Fr�bel_ (loc. cit., 87 ff.) that England and Prussia should
+     together found a German colony in the valley of the La
+     Plata, to which _Wapp�us_ rightly objects, that there are
+     few places there in which peasant emigrants would like to
+     acquire land. (Mittel- und S�damerika, 1866, 1027.)]
+
+     [Footnote 260-9: Compare _Wapp�us_, Deutsche Auswanderung
+     und Kolonisation, 1846.]
+
+
+SECTION CCLXI.
+
+STATE AID TO EMIGRANTS.
+
+The inquiry, What can the state reasonably do for emigration, must, of
+course, receive a very different answer according as there is question
+of merely negative (� 259) or colonizing emigration (� 262). To give the
+latter a proper impulse requires so great an outlay of capital and labor
+that it can be made only by the state; and in Germany, on a large scale,
+only by a union of several states. We must not here deceive ourselves.
+Emigrants will go uniformly where they have the nearest prospect of a
+comfortable future. Whether in emigrating they shall continue their
+connection with their old home, or whether their children shall be
+completely denationalized is a matter with which very few emigrants
+concern themselves; and considering the amount of education they
+generally possess, this need excite no surprise. Hence, if Germany would
+unite its departing children in a colony permanently German, and
+therefore new,[261-1] it would be necessary for it to offer them, at its
+own expense, at least the same advantages which they would find in older
+and fully established colonies. He who would reap should not endeavor to
+evade the sacrifice incident to the sowing.[261-2] Even great sacrifices
+in this direction would certainly be richly rewarded if properly made.
+Probably the outlay would never be directly returned to the national
+treasury; but there is all the more reason, on this account, that there
+should be an indirect return by the increase of duties and other
+indirect taxes.
+
+On the other hand, the costly assistance of the state in the case of
+merely negative emigration would, as a rule, be folly. Who would compel
+the children of the great national family, who necessarily or
+voluntarily remain faithful to the paternal roof, to pay tribute to
+those who turn their backs on the old home for ever? The wealthy
+especially who remain in the country have to put up with the
+disadvantage of paying higher wages for labor.
+
+Simple humanity requires that the state should not be blind to the
+movement of emigration, nor abandon it to all the risks of improvident
+liberty. Hence it should endeavor to remove the ignorance prevailing on
+questions of emigration. It should require personal and other guaranties
+that emigration agents are not simply dealers in men, and that the
+contracts made with ship-owners by emigrants are really performed. It
+should exercise a strict superintendence over the mode of transportation
+of emigrants, and see to it that its consuls accredited to America, etc.
+assist them by word and deed.[261-3] The legislation of Bremen is a
+model in this respect, and has contributed largely to make that port a
+principal outlet for German emigration.[261-4] The provisions of the
+laws of October 1, 1832, of July 14, 1854, of July 9, 1866, etc.,
+embrace among others the following: Only a citizen of Bremen, of good
+repute, and who has given security to the amount of five thousand
+thalers, shall be entitled to receive and contract with emigrants for
+passage; to each passenger shall be allotted a space of at least twelve
+square feet of surface and six feet high; provision shall be made for
+the longest possible time of passage; for instance, for thirteen weeks
+for a voyage northerly from the equator. At the same time, the
+ship-owner is required to give security that in case of accident to the
+vessel, disabling it in such a way as to unfit it to continue the
+journey, he shall return the fare of all passengers saved, and pay them
+an additional sum of from twenty to forty thalers, according to the
+length of the passage, to cover the cost of salvage, to support
+themselves for the time being, and enable them to continue their
+journey. The entire matter is controlled by a rigid system of
+ship-investigation, and is under the superintendence of a board of
+officers, made up of senators and members of the chamber of
+commerce.[261-5] Among English provisions[261-6] particularly worthy of
+imitation is that which requires the government agents in Canada, etc.
+to furnish information gratis to emigrants. But to keep their clients
+from the practice of idling about, so ruinous to themselves, the agents
+refuse aid to all emigrants who, without sufficient reason, remain over
+eight days in the harbor.
+
+     [Footnote 261-1: Much might be gained if German emigrants to
+     the United States would concentrate themselves in one state,
+     and thus soon make it a German state. For many reasons
+     Wisconsin is best adapted to such a purpose.]
+
+     [Footnote 261-2: Provision made to put the colonists in
+     possession of lands well explored and surveyed, to have the
+     preliminary labor performed by persons already
+     acclimated--labor which is the most injurious to health, the
+     clearing of the land, the construction of
+     buildings--purchasing the agricultural implements at
+     wholesale, etc.]
+
+     [Footnote 261-3: _v. Gessler_ (T�binger Zeitschr., 1862, 398
+     ff.), recommends the establishment of an "asylum" in the
+     neighborhood of the locality where the emigrants are likely
+     to settle. In this asylum they might, during the time
+     immediately following their arrival, find shelter, food,
+     medicines, etc., and all the implements necessary to a
+     settler, at cost. The institution might be established
+     either by the home government, by a humanitarian emigration
+     society, or by a land company in the colony itself.]
+
+     [Footnote 261-4: There passed
+
+     ================================================================
+                             |   _In 1854._      |     _In 1867._
+     ------------------------+-------------------|-------------------
+     Through Bremen,         | 76,875 emigrants. |  73,971 emigrants.
+     Through Hamburg,        | 50,819      "     |  42,845      "
+     (Of these directly only | 32,310)     "     | (38,170)     "
+     Through Havre,          | 95,849      "     |  22,753      "
+     Through Antwerp,        | 25,843      "     |  12,086      "
+     Through other ports,    |  2,50       "     |
+     ================================================================
+
+     The trade of Bremen has, as the result of this
+     transportation of emigrants, grown just as that of the
+     Italian sea coast cities by the transportation of the
+     crusaders in the Middle Ages. Here, as in so many other
+     cases, genuine philanthropy, in the long run, moves nearly
+     parallel with real economic advantage. And in fact, the
+     Statuta civitatis Messili� of 1228 (IV, 24 seq., 28, 30)
+     contain provisions in relation to the crusaders which
+     forcibly remind one of the modern Bremen laws. Similarly in
+     Venice: Compare _Depping_, Histoire du Commerce entre le
+     Levant et l'Europe, 284; II, 313 seq.]
+
+     [Footnote 261-5: Similar provisions in Hamburg, June 3,
+     1850, revised February 26, 1855; in France, January 15,
+     1855; in the United States of America, March 2, 1855.
+     Compare _H�bner_, Statistisches Jahrbuch, 1856, 289 ff.
+     However, there were serious complaints, a short time since,
+     concerning German emigrant transportation, especially of the
+     treatment of women: Novara-Reise, III, 49 ff. Ausland, 1863,
+     No. 8. One of the principal wants is that emigration agents
+     should be held responsible for detaining their clients a
+     long time and at a heavy expense, in places of embarkation.]
+
+     [Footnote 261-6: Compare _McCulloch_, Commercial Dictionary,
+     v. Colonies, 9 George, IV., ch. 21. The law of June 30,
+     1852, carries solicitude for the lot of emigrants very far.
+     It embraces 91 articles and 11 additions. Everything is most
+     minutely provided for, even the form of the passage ticket.
+     The old law of 1803, drawn up in accordance with the advice
+     of the Scotch Highland Society, was apparently devised in
+     the interest of the emigrants; but it contained a multitude
+     of minute requirements suggested by a desire on the part of
+     the advisers to restrict emigration. Hence it was, in
+     practice, by consent of both parties, always evaded. Compare
+     _Lord Selkirk_, Observations on the present State of the
+     Highlands of Scotland, with a View of the Causes and
+     probable Consequences of Emigration (1805). Edinburgh R.,
+     December, 1826, 61; January, 1828.]
+
+
+SECTION CCLXII.
+
+EMIGRATION AND PAUPERISM.
+
+As a very rare exception, an emigration suddenly undertaken, well
+directed and on a very large scale, may be made to constitute the
+efficient means preparatory to the abolition of pauperism. Where, for
+instance, by reason of the subdivision of the land into extremely small
+parcels, farming on a diminutive scale has come to preponderate; where
+the popular home-industries have been reduced to a miserable condition
+by the immoderate competition of great foreign manufacturers and
+machinery, the hopelessness of the situation consists principally in
+this: that every improvement made must be preceded by a concentration of
+the forces of labor, and their combination with the powers of capital;
+which for the moment renders a great number of those who have been
+laborers hitherto entirely superfluous. That is, to raise the level of
+the whole public economy and provide a decent livelihood for 10,000 men,
+it would be necessary to condemn another 10,000 to death from
+starvation! Most political doctors recoil at the thought of this
+transition-crisis. They content themselves with palliatives which, in
+the end, cost much and afford no help. The simplest remedy here would
+evidently be to cause those workmen who have become superfluous to
+emigrate at the expense of the state. Next, the necessary economic
+reforms should be carried out at home and the return of the evil
+prevented by rigid legislation. The more sudden this emigration is, the
+nearer it comes to taking place, so to speak, all at once, the less
+possible it is that the increase of population should keep even pace
+with it. The condition of the proletarians who remained at home could
+not fail to have a favorable influence in this respect; for nothing
+leads men so much into contracting reckless marriages as the total
+absence of any prospect of amelioration of their condition in the
+future.[262-1] [262-2]
+
+     [Footnote 262-1: Many of the most competent thinkers have
+     designated such emigration as the only remedy for the
+     over-population of Ireland. Compare _Torrens_, The Budget,
+     passim; _J. S. Mill_, Principles, II, ch. 10; Edinburg Rev.,
+     January, 1850. _Lord Palmerston_ retained the wealthiest
+     farmers on his estates who were intending to emigrate, by
+     causing the poor ones to emigrate at his own expense. The
+     independent emigration of the Irish at their own expense
+     which has been going on for some years, might become an
+     incalculable gain to the English nation. By the poor law, 4
+     and 5 William IV., c. 76, the English parishes are
+     authorized, with the approval of the central poor board, to
+     assist emigration to the extent of �10 per capita. Between
+     1849 and 1853, they assisted 1,826 poor persons on an
+     average per annum, who received for that purpose �10,352.
+     (_Kries_, Engl. Armenpflege, 1863, 30.)]
+
+     [Footnote 262-2: It is an interesting thought of _R. von
+     Mokl_, Polizeiwissenschaft, I, 130, that real
+     over-population, when no one was willing to emigrate of his
+     own accord, might be remedied by a species of
+     emigration-conscription of young adults by the drawing of
+     lots, the right of substitution, etc. The ancient Italians
+     sometimes realized this idea by the _ver sacrum_. Similarly
+     in many cases of Greek emigration, by the worship of Apollo:
+     Compare _W. H. Roscher_, Apollon und Mars (1873), 82 ff.]
+
+
+SECTION CCLXII (_a_).
+
+TEMPORARY EMIGRATION.
+
+Besides definitive emigration, temporary emigration deserves special
+consideration. If the wages of labor are much lower in one locality than
+in another which is easily accessible,[262a-1] the workmen of the former
+place resolve much more readily on periodical migrations thither than on
+permanent settlements in the place. It is especially the difficult work
+of harvesting, where farmers are pressed for time,[262a-2] and that of
+house-building,[262a-3] which are undertaken by these birds of passage;
+and mountainous regions, with their limited agriculture, their late
+crops and their longing look into the far-off which is found united with
+a deep-rooted attachment to home, are the places whence they
+come.[262a-4] When their home is distinguished in certain branches of
+labor, they are wont to carry these with them abroad, and in such case
+their sojourn away from home is generally longer.[262a-5] The shorter
+and the more vagabond-like their migration, the less apt is it to be an
+economic blessing to the wanderers themselves.[262a-6] There must
+necessarily result, as a consequence, a species of equalization between
+the rates of wages in the country receiving and the country furnishing
+them.[262a-7] This may be a great national misfortune for the latter,
+inasmuch as its working class may thus be forced to a lower standard of
+life, and all their providence and self-control in the founding of a
+family be made fruitless by the arrival of less capable
+foreigners.[262a-8] The hatred existing among the members of a higher
+class for parvenus from a lower corresponds in this respect to the
+mutual hatred of two countries for the natives of the other, (_v.
+Mangoldt_.) Considered from the point of view of the country furnishing
+these migratory classes, temporary emigration has this advantage over
+definitive emigration, that the persons leaving the country always
+maintain their economic connection with their home.[262a-9] The most
+striking example of this is afforded by those merchants, ship-owners,
+etc. who are, so to speak, pioneers in foreign markets for Switzerland
+and Bremen. Only there is always danger of a crisis when the usual flow
+is suddenly checked.[262a-10]
+
+     [Footnote 262a-1: The locust-like emigration from Ireland to
+     England takes three principal directions: from Dublin to
+     Liverpool, from Cork to Bristol, from the North-East to
+     Scotland. This even before 1835. (_Berkeley_, Querist, Nr.,
+     526 ff.) Great increase since the fare has been reduced on
+     the steamers to from 4 to 6 pence. (Edinburg Rev., XLV, 54
+     ff.; XLVII, 236 ff.)]
+
+     [Footnote 262a-2: Thus mowers emigrate from W�rttemberg and
+     the Odenwald into the valley of the Rhine; inhabitants of
+     the Alps into the South German plains, and the inhabitants
+     of the sandy and healthy localities into the Hanoverian
+     marshes and Holland; inhabitants of the Brabant into France.
+     Many go from Waesland, 5 and 6 miles distant from Holland,
+     to sow a field manured and plowed by the owner with flax,
+     and afterwards to weed and harvest it, etc., and at their
+     own expense. (_Schwerz_, Belg. Landwirthschaft, II, 105.)
+     Even in the sixteenth century, 20,000 Frenchmen went every
+     year to Spain in harvest time. (_Boden_, Responsio ad
+     Paradoxa, 49.) Migration of the East-goers (_Ostgeher_) from
+     Wartebruch as far as Poland and Russia (_Fr�hling_, N.
+     Landwirthsch., Ztg., 1870, 451 ff.) Galicians go into the
+     Polish plains, and Poles into the Prussian low country (_v.
+     Haxthausen_, L�ndl. Verfassung, I, 99); Russians from the
+     populous district of Oreland Poltawa etc. into the Southern
+     steppes (_Kohl_, Reise, II, 118), and also out of Northern
+     woody districts to Jaroslay, where they give themselves to
+     the cultivation of the fields (_v. Haxthausen_, Studien, V,
+     198); Gallegos into the Portuguese wine region; inhabitants
+     of the Abruzzi into the Roman Campagna (_Galiani_, Della
+     Moneta, V, 4); Calabrians to Naples. In Tuscany, almost the
+     entire cultivation of the unhealthy plains is done by the
+     inhabitants of the mountains. Even in Africa migrations by
+     the _fulahs_ into the plains before them (_Ritter_,
+     Erdkunde, I, 349); of the inhabitants of the cataracts of
+     the Nile into Lower Egypt, where they remain from six to
+     eight years, and where they are in great favor because of
+     their honesty as gate-keepers and pack-carriers.
+     (_Burckhardt_, Travels, 147.)]
+
+     [Footnote 262a-3: In Paris, a great many masons and
+     carpenters from Lothringen and Limousin, who return after
+     from 6 to 7 months. The number of these migratory building
+     workmen is estimated at over 40,000. (_Wolowski._) Thus
+     thousands of brick makers migrate from Vicentini and Friaul
+     into Austria and Hungary; from the vicinity of lakes Como
+     and Lugan, masons have been spread over all Italy, and this,
+     it is said, has been going on a thousand years, (_v.
+     Rumohr_, Reise in die Lombardei, 135 ff.) Yearly migration
+     of about 3,000 brick finishers from Lippe-Detmold, which is
+     very opportunely directed by the government. (_F. G.
+     Schulze_, Nat. Oek., 606.)]
+
+     [Footnote 262a-4: In the Apennines, almost every valley has
+     its own migration-district. Thus the Modeneses go to
+     Corsica, and the Parmesanes to England. The migration from
+     the German Tyrol amounts yearly to between 16,000 and 17,000
+     men. (_v. Reden_, Zeitschrift f�r Statistik, 1848, 522.) In
+     the Canton of Tessin, over 11,000 passes are given for this
+     purpose yearly; that is, to more than 10 per cent. of the
+     entire population. The majority go to Upper Italy, but some
+     go to Russia. The cheese-makers, pack-carriers and dealers
+     in chestnuts, migrate from fall to spring; masons, glaziers,
+     etc. in summer.]
+
+     [Footnote 262a-5: Savoyards as "shoe-blacks" etc. in Paris
+     (_L. Faucher_, La Colonie des S. � Paris); Portuguese, as
+     peddlers and pack-carriers in large cities in Brazil
+     (_Jahn_, Beitr., 33); Gallegos in the large cities of Spain
+     and Portugal as water-carriers; Bergamasks, in Milan and
+     Genoa as pack-servants, where they constitute a kind of
+     guild; the inhabitants about Lake Orta (south of the Lago
+     Maggiore) as waiters, and hence the inns there are very
+     good; Bohemian musicians, who carry on quite a different
+     business at home during the winter; Grisons, as
+     confectioners all over Europe. Many villages obtain from
+     this source 20,000 florins. (_R�der und Tscharner_, C.
+     Gra�bundten, I, 337.) There are at this time about three
+     million people from China, and almost exclusively from the
+     conquered and oppressed province of Fokien, in Farther
+     India, where they execute the finer kinds of labor.
+     (_Ritter_, Erdkunde, IV, 787 ff.)]
+
+     [Footnote 262a-6: In Tessin, the fields are tilled, and
+     badly enough, by old men, women etc. The men spend in the
+     taverns and in all kinds of vice what they saved during the
+     working season (_Franscini_, C. Tessen, 156 ff.) Those who
+     migrate from the vicinity of Osnabr�ck into Holland are said
+     to bring back with them yearly about 100,000 thalers; but
+     their abstinence from warm food, their bivouacking etc., to
+     which they have recourse for the sake of frugality, lays the
+     germs of numberless diseases. (_J. M�ser_, P. Ph, I, 14 ff.)
+     There are serious complaints of the demoralization of women
+     produced in England by the gang-system, in which roving
+     workmen, mostly Irish, are employed under a gang master to
+     perform contract work. (_L. Faucher_, Etudes sur l'Angleterre,
+     2, ed. I, 383, ff.)]
+
+     [Footnote 262a-7: Hence, for instance, Osnabr�ck complained
+     bitterly of the migration to Holland, because it raised the
+     wages of servants. However, the absolute freedom of removal
+     from one place to another produces not only a leveling of
+     wages, but also an absolute rise of the rate of wages, as
+     may be seen by contrasting it with the _glebae adscriptio_.
+     Compare _supra_, � 160.]
+
+     [Footnote 262a-8: Great danger to the national life of the
+     English people by immigration from Ireland. The Irish
+     laborers, bare-footed and ragged, restricting themselves to
+     potatoes and whisky, have carried their disgusting habit of
+     living in cellars, and of congregating several families
+     together into one room, even with pigs as companions, over
+     to England. (_Th. Carlyle_, On Chartism, 28 ff.; _G. C.
+     Lewis_, The Condition of the Irish in England.) It is said
+     that, in 1819, in London alone, there were over 70,000
+     Irish; in 1826, over 119,000. (Edinb. Rev. XLVII.) Even _J.
+     S. Mill_ would have no hesitation to prohibit this
+     emigration to prevent the economic contagion spreading to
+     English workmen. (Principles, I, ch. 14, 6.) Fortunately now
+     Irish emigration has taken the direction of America, where
+     there is more room. Whether in future Chinese emigration may
+     not greatly endanger the condition of the lower classes,
+     first in America and Australia, and then indirectly in
+     Europe, _qu�re_. It is estimated that between 1856 and 1859,
+     78,817 Chinese emigrated to the United States. In Australia,
+     to deter them from immigration, a tax of �10 per capita has
+     been imposed on their entry into the country. (_Fawcett_,
+     Manual, 107.)]
+
+     [Footnote 262a-9: Of the East Indian coolies who had gone to
+     Demarara, 469 returned in September, 1869, after having
+     saved in five years, �11.235. (_Appun_, Unter den Troppen,
+     II, 34).]
+
+     [Footnote 262a-10: The Grisons had, during the 17th century,
+     accustomed themselves to living some time in the Venetian
+     territory as shoemakers, 1,000 at a time. The blow was all
+     the more severe when Venice, in 1766, expelled all the
+     families. Since that time most of the Grison confectionaries
+     in the principal cities of Europe have had their origin.
+     (_R�der und Tcharner_, C. Graudbundten, I, 56.) The practice
+     of engaging mercenaries as troops was of great assistance,
+     especially in the interior of Switzerland. During the war of
+     1690 ff., there were nearly 36,000 Swiss hirelings in the
+     French army. Shortly before 1789, even during the period of
+     peace in France, Italy, Spain and Holland, their number may
+     be estimated to have been at least 30,000. (_Meyer v.
+     Knonau_, Gesch. der Schweiz. Eidgenossenschaft, II, 104,
+     464.) No wonder, therefore, that the cessation of the Swiss
+     guards caused a frightful crisis. Expulsion of the
+     Tessinians from Lombardy, 1853.]
+
+
+SECTION CCLXIII.
+
+CONCLUSION.
+
+That the economy of no nation can continue to grow _ad infinitum_ is, in
+general, as easy to believe[263-1] as it is difficult to point out with
+a specification of particulars what are the limits which cannot be
+exceeded. This would be possible first in the case of agriculture. Here
+there are points beyond which every man practically versed in the art
+can see, that an increase of the gross product must be attended by an
+absolute decrease in the net product.[263-2] But even supposing that a
+people had reached this point in their entire agriculture, they might
+still carry on industries, commerce, perform personal services for other
+nations, and obtain remuneration therefor in the means of subsistence
+and manufactured articles. If our nation has once entered on this path,
+it is evident that every improvement of its industry, every advance made
+by foreign countries in the production of raw material, manufactures and
+the consumption of services must result in a growth of our economy.
+David Hume was of opinion that industrial preponderance was in a
+necessary and continual state of transition from one country to another.
+A very highly developed state of industry made a country rich in money
+but enhanced the price of the means of subsistence, and the rate of
+wages; until finally it became impossible for it to compete in the
+markets of the world with cheaper countries, and industry, in
+consequence, emigrated to these.[263-3] But it is easy to see how all
+such limits are extended by the modern improvements in transportation,
+and the consequent facilitation of importation; and how much the remedy
+mentioned in � 198 has gained in importance by the modern advances made
+in machinery and the preponderance in so many respects of machine over
+hand labor.[263-4]
+
+But here it is necessary to distinguish between the "applied" and only
+practical political economy, and "pure political economy." (� 217.) A
+development thus continued would be attended with great difficulty even
+if the whole world constituted one great empire. We need only mention
+Austria, where some provinces have remained in a very backward, almost
+medieval condition, while others have for a long time manifested the
+symptoms of over-population. How much more in different states. An
+uncivilized nation will frequently not care to increase its consumption
+of our manufactures, if to do so it becomes necessary to carry on its
+agriculture more industriously. Another nation that has already tasted
+of the fruit of the tree of economic knowledge may not be satisfied with
+the mere production of raw material forever. In time it may want to
+carry on commerce and industry itself, and hence consider the breaking
+of its commercial course with us as a species of emancipation from us.
+And, further, how if other highly cultivated nations should compete with
+us in the markets of countries which produce merely raw material? if
+such rivals should wage war in which each party should harm his
+adversary for the mere love of doing harm, and not unfrequently in
+opposition to its own economic interests? I know of no period the
+development of which has not been attended by such disturbances, and
+hence they cannot be said to be entirely unnatural.[263-5]
+
+And even at home and among highly civilized nations, there are wont to
+be many obstacles to advancement on this road of progress. Every great
+economic change is connected as cause and effect, with a variety of
+political, social and other reformations which are never accomplished
+without great hardship and hesitation.[263-6] Where the division of
+labor has been developed to any extent, the formerly existing
+circumstances which must be surrendered for the sake of progress are
+generally synonymous with the interests of some class. This class
+opposes the improvement, and a struggle becomes necessary to carry it
+out. But under certain circumstances, a long delay in effecting a
+necessary reform may paralyse or poison the minds of the people to such
+an extent that they may afterwards have neither the will nor the power
+to successfully advance. This is the most important exception to the
+rule laid down in � 24. The happier the ethnographic and social
+composition of a people, the better the national spirit, the more
+skillful the form of its constitution, the less frequently will it
+happen.[263-7] All this is true especially of over-population and the
+plethora[263-8] of capital which so easily injure the morality of a
+people. New inventions also, by means of which the limits of the
+possibility of production may be incalculably extended can be expected
+only from nations where there is no intellectual decline.[263-9]
+
+     [Footnote 263-1: There are, indeed, different opinions on
+     this matter, and they were preponderant during the second
+     half of the eighteenth century. Compare _Condorcet_, Tableau
+     historique, des Progr�s de l'Esprit humain, especially
+     Epoque X, in which he treats of future progress.
+     Nevertheless, he obscurely alludes (Oeuvres, VIII, 350) to
+     a time when no further increase of population should take
+     place. _Malthus_, Principle of Population, III, ch. 1,
+     thoroughly demonstrates that in regard to the great
+     prolongation of human life which he foresaw, the idea of the
+     indefinite and that of the infinite were confounded with
+     each other.
+
+     In that young and vigorous country, the United States of
+     America, we find a popular school which, to say the least,
+     hints at the principle of infinite growth. Thus, for
+     instance, _Peshine Smith_ (Manual of Political Economy, New
+     York, 1853) teaches that the means of subsistence consumed
+     at the place of production are not destroyed, but may return
+     just as much to the soil in the form of manure as they had
+     previously drawn from it (ch. 1). Capital has a tendency to
+     increase more rapidly than population (ch. 6). The rate of
+     wages has a tendency to increase with the increase of
+     population (ch. 5). Mechanical progress increases the value
+     of human labor and causes that of capital to decline
+     relatively (ch. 3). He reverses, with _Carey_, Ricardo's law
+     of rent (ch. 2).
+
+     _Carey_, also, relying on the assumption that more fertile
+     land is brought under cultivation as civilization advances,
+     allows us to see no limits whatever to this growth. (Past,
+     Present and Future, ch. 3.) Still more clearly is the
+     principle of unlimited and continually accelerated growth
+     laid down in his Principles of Social Science, I, 270.
+     _Carey_ illustrates this principle by means of the example
+     of the continually accelerated motion of a falling body,
+     without noticing the practical _ad absurdum deductio_
+     involved in it, that at the end of the thousandth second a
+     falling body reaches a velocity of 1,000,000 feet. (loc.
+     cit., 204.) But even in England, at present, we find such
+     thoughts at times. _Banfield_, for instance, can scarcely
+     understand how the relative rates of wages, interest and
+     rent can decrease, except by an increase of their absolute
+     amounts. See his Organization of Industry, passim. And so
+     _v. Prittwitz_ entertains the most rosy-colored hopes. He
+     has no doubt that all governments which are still bad will
+     see the error of their ways and correct them. (Kunst reich
+     zu werden, 79.)
+
+     The growth of capital and even of human wealth in general is
+     capable of indefinite increase (81). The rate of interest
+     would sink almost to zero if so much capital were
+     accumulated that no "undertakers" could be found who care to
+     use it (305). Large farming will entirely cease in the
+     future (307), and when the system of railroads is entirely
+     completed, the whole earth will present the appearance of
+     one immense park (29). He would allay all fear concerning
+     the exhaustion of combustible material by pointing out the
+     possibility consequent upon improved means of communication,
+     that a great many of the inhabitants of the colder regions
+     of the earth might migrate in winter to a warmer climate
+     (21). At the same time, artesian wells might be made to
+     bring to the surface the internal heat of the earth, or
+     metallic plates connected with the wings of a windmill,
+     might be made to generate heat by their friction on one
+     another (22). See the same author's Andeutungen �ber
+     k�nftige Fortschritte und die Gr�nz en der Civilization, 21
+     Aufl., 1855.]
+
+     [Footnote 263-2: According to � 165, we might say: where the
+     product of the workman last employed is not sufficient to
+     meet his own wants. Thus _J. B. Say_ says that only that can
+     be considered a product, the utility of which is at least
+     equal to its cost. He makes use of the example where a three
+     days' journey is necessary to obtain the food requisite for
+     one. As the limits of production he gives the following: too
+     few human wants; too costly methods of production; too high
+     taxes, natural obstacles created by infertility or too great
+     distance. (Traite I, ch. 15. Cours pratique, I, 349.)]
+
+     [Footnote 263-3: _D. Hume_, Discourses, No. 3, On Money.]
+
+     [Footnote 263-4: England is especially well situated in this
+     respect, in consequence of its excellent commercial position
+     and its surplus of the principal auxiliary products, such as
+     coal, iron, etc. Should the coal-beds of such a
+     manufacturing country be ever entirely exhausted, it is
+     scarcely possible to see, from our present point of view,
+     how the most rapid and most frightful decline of its
+     national economy could be averted! Compare the opening
+     address before the British Association, by Armstrong, at
+     Newcastle (1863), who prophecies the exhaustion of the
+     English coal-beds in 212 years at the rate at which coal had
+     been consumed during the eight preceding years. According to
+     the report of the royal committee on the coal question
+     (1871, vol. III), Great Britain has still attainable
+     deposits, that is 4,000 feet deep, 90,207,000,000 tons of
+     coal in its coal beds already known; and in beds not yet
+     worked, 56,273,000,000 tons. Compare, also, _Jevons_, The
+     Coal Question (1866). It is estimated that the most
+     productive French coal-field will be exhausted in 100 years.
+     (_M. Chevalier_, Rapport du Jury international de 1867,
+     57.)]
+
+     [Footnote 263-5: Even _J. S. Mill's_ views on the
+     probability of perpetual peace on earth are altogether too
+     rosy: Principles III, ch. 17, 5. This is still truer of
+     _Buckle_. History of Civilization, I, ch. 4. In the modern
+     state-system of Europe, there is wont to be in each
+     generation, a peaceful half and a warlike one, which follow
+     each other as ebb and flow. I need only mention the
+     preponderance of peace between 1714 and 1740, between 1763
+     and 1793, and between 1815 and 1853. It happens frequently
+     that at the close of the period of peace, intelligent and
+     noble but unhistorical and therefore short-sighted minds
+     begin to dream of perpetual peace. Even a man like _Dohm_
+     (Ueber die b�rgerliche Verbesserung der Juden, 227 seq.)
+     expected, in 1785, that considering the size and quality of
+     armies, and the mutual knowledge of all countries of one
+     another, that instead of actually waging war, nations might
+     send to each other well authenticated statements of the
+     strength, for instance, of their navies and of the sums
+     necessary to maintain them for a number of years.]
+
+     [Footnote 263-6: The Mongols saw the abandonment of their
+     nomadic life in so gloomy a light that they seriously
+     thought of turning all China with its countless human beings
+     into pasture-land! (_Gibbon_, History of the Roman Empire,
+     ch. 34.)]
+
+     [Footnote 263-7: It is a fact characteristic of the history
+     of England, that Norman supremacy and afterwards bondage
+     were wiped out so gradually that contemporary historians
+     have nothing to say of the transformation. (_Macaulay_,
+     History of England, ch. 1.) Repeal of the corn laws
+     _vis-a-vis_ of the most recent industrial advance of the
+     country.]
+
+     [Footnote 263-8: Even _Ricardo_ says that in a highly
+     civilized country the continual making of savings is by no
+     means desirable. Carried to an extreme, saving would lead to
+     the equal poverty of all. (Principles, ch. 5.)]
+
+     [Footnote 264-9: The _Beccaria_, Economia publica I, 3, 31,
+     teaches that the limits of population are to be found at the
+     point where agriculture cannot be made to yield an
+     additional increase of products, and where foreign countries
+     do not offer any more a counter value of their products in
+     exchange for the manufactured articles and the services to
+     be furnished them. Similarly, _B�sch_, Geldumlauf III, 7;
+     otherwise, indeed, V, 15, in which, in opposition to _Adam
+     Smith_, it is claimed that the work to be performed by one
+     nation for others has no limits which cannot be exceeded.
+     _Steuart's_ theory of the limits to the production of every
+     commercial nation: Principles, I, ch. 18. _Lauderdale_,
+     Inquiry, ch. 5, 274 ff., says categorically, that all wealth
+     which is produced by the transformation of raw material
+     depends on the production of such raw material, and of the
+     means of subsistence necessary for the support of the labor
+     employed in such transformation. Excellent investigations by
+     _Malthus_ in the additions (1817) to the Essay on the
+     Principles of Population, II, ch. 9-13. Compare _Roscher_
+     National�con. des Ackerbaues, � 162. As early a writer as
+     _Mirabeau_, Philosophie rurale, ch. X, was of opinion that a
+     country whose industries were on as large a scale as those
+     of Holland, dispersed its people indeed over the whole
+     earth, made them independent at home, but almost destroyed
+     their nationality.]
+
+
+SECTION CCLXIV.
+
+THE DECLINE OF NATIONS.
+
+That, after a whole nation has reached the zenith of its prosperity, it
+is subject to old age and to decline, and cannot avoid them, is in
+general, a proposition susceptible neither of proof nor
+refutation.[264-1] This uncertainty is practically very useful, for were
+it otherwise, mediocre statesmen might become either discouraged or
+indifferent. However, we should not assume, as so many do,[264-2]
+without proof, the earthly immortality of nations, provided only they
+observe a proper diet; nor call the science of the physiology or
+medicine of nations a chimera, simply because it confesses that it knows
+of no preventive against such old age. It has doubtless been the fate of
+many nations to die, that is, not precisely to be destroyed--just as in
+the physical world, not a particle of matter is lost--but to see their
+former national personality disappear, and themselves continue to exist
+only as component parts of some other nation.[264-3] This phenomenon,
+indeed, finds its analogon in every thing that is human, but seems to
+contradict a law of nature which very widely prevails, viz.: that it is
+easier to advance in a certain direction in proportion to the distance
+gone over in it already.[264-4]
+
+The problem of decline, however, is solved by the enervating influence
+of possession and power, an influence which only a select few among men
+can escape. And yet to every external advance there must be a
+corresponding advance of the interior man, else there is a fall great in
+proportion to the height before attained. The greater number take their
+ease once they have attained the object of their ambition. I need only
+cite the example of the posterity of those men who have grown rich by
+unusual exertion. Success itself generates vanity and a feeling of false
+security, the latter especially, inasmuch as that is expected from the
+whole community, from the state for instance, from others generally,
+which should be the fruits of one's own vigilance and one's own
+endeavors. It should not be forgotten that the nation is made up of
+individuals.[264-5]
+
+In addition to this there is the striving after the new for the sake of
+novelty; a striving promotive of progress in itself, and without which
+the full development of the forces of civilization would probably not be
+possible. But if the genius of no nation is possessed of infinite
+capacities, it must happen, at last, that, in case the best has been
+attained, and the demand for novelty continues, men will go over to that
+which is worse. Even very great competition has here a dangerous
+influence, since it raises the great mass of the incompetent to the
+dignity of judges, and endeavors to seduce them by illicit means; in the
+arts, for instance, sensuousness is made to take the place of the
+feeling of the beautiful.[264-6]
+
+There is, further the process of undeceiving, inseparable from the
+prosecution of any ideal purpose. Such ideals have always very much of
+human weakness in them. The great crowd of ordinary men follow, as a
+rule, their material interests. Only occasionally do they rise to the
+height of ideal things; and here we discover the brightest points in
+history. Later there comes uniformly a period of disenchantment and of
+exhaustion after the debauch is over. When all the ideals accessible to
+the nation have been destroyed or outlived, nothing can be done to
+awaken the masses from their slumber, or induce them to shake off their
+inactivity.
+
+As a rule, the influences which have accelerated a nation's progress and
+brought it to the apogee of its social existence end in precipitating
+its ruin by their further action. Every direction which humanity takes
+has almost always something of evil in it, is limited in its very
+nature, and cannot stand its extremest consequences.[264-7] All earthly
+existence bears in itself, from the first, the germs of its decay.
+
+However, to calm the feeling of human liberty, we may boldly assert that
+there never was a nation remarkable for its religiousness and morality
+which declined so long as it preserved these highest of all goods; but
+then no nation outlived their possession.
+
+     [Footnote 264-1: Even in the case of individuals, that death
+     is necessary is not susceptible of absolute demonstration;
+     but no one doubts it, because of the experience so
+     frequently repeated; an experience, however, which cannot be
+     had in the same degree in the case of whole nations.]
+
+     [Footnote 264-2: Remarkable controversy between _Hume_ and
+     _Tucker_. The former had charged the latter with holding the
+     opinion that industry and wealth must necessarily continue
+     to advance indefinitely; and yet all things had in them the
+     germs of decay. _Tucker_, on the other hand, remarked that
+     all he wished to say was that no one could point out where
+     progress must necessarily cease. All political bodies like
+     all natural bodies might decay; but it is not necessary that
+     they should. With good laws and morality they would become
+     more vigorous with increasing age. A great deal depended
+     here on the more general distribution of property, on the
+     assurance that industry would meet with its reward, and on
+     the removal of the principal defects in the English
+     electoral system. (Four Tracts, 477 seq. Two Sermons, 30.)
+     Most political economists are of the same opinion; thus
+     _McCulloch_, Principles, II, 3. See, however, the last two
+     sections in _Ferguson_, History of civil Society.]
+
+     [Footnote 264-3: We assume that a new nation has arisen,
+     when, after the disappearance of an earlier and high
+     civilization, combined with the taking up of new
+     ethnographic elements, we perceive anew the easily
+     recognizable symptoms of youthful immaturity.]
+
+     [Footnote 264-4: Expressed in the domain of religion in the
+     words of the Savior: _Matth._, 25, 29. But at the same time
+     the equally well-known expression in _Luke_, 12, 48, must be
+     fulfilled. Compare _H. Brocher_, L'Economie mon�taire, 1871,
+     25 ff.]
+
+     [Footnote 264-5: Schools of art are generally ruined by
+     mannerism. Of the two great means of education in art, the
+     study of nature and the study of classic models, the latter
+     is the easier, and the former is readily neglected for it.
+     Then there is the endeavor to flatter the master, which is
+     most effectually done by imitating his faults; and the fact
+     that pretending connoisseurs are most cheaply satisfied by
+     mannerism.]
+
+     [Footnote 264-6: There is a peculiar charm, very productive
+     in itself, attaching to the cultivation of a field which has
+     been but little cultivated, and which, therefore, has the
+     advantage of promising something new. On the other hand, the
+     decline of almost all literatures begins with this, that
+     writers and readers no longer think out completely the forms
+     of speech, modes of expression, etc. to which they have
+     become used, as their original creators did; a great
+     temptation to have recourse to a more and more spicy
+     literary style. _J. S. Mill_ considers the stationary state
+     (Principles, IV, ch. 6) a very pleasant one to contemplate,
+     but he overlooks the very important fact, that as men are
+     constituted it uniformly introduces national decline.]
+
+     [Footnote 264-7: Great rulers, of whom it is said that they
+     conquered the world by following out their own ideas to
+     their ultimate consequences, would most certainly have lost
+     the world by reason of the same logic if they had continued
+     it only fifty years longer. What would have become of
+     Alexander the Great and Charlemagne if they had lived one
+     generation more?]
+
+
+SECTION CCLXV.
+
+CONCLUSION.
+
+All the separate nations which have lived side by side, or followed one
+another, are embraced under the general name, humanity. Who would deny
+the existence of a point, viewed from which humanity might be seen to
+constitute one great whole; all the variations and differences in its
+life only one great plan, one wonderful sovereign decree of the divine
+will, grandly and wonderfully executed by God? Or who is so bold as to
+say that he stands on this point himself? Theologians should be the last
+to do it, since even the apostle Paul calls God's ways inscrutable. So
+long as we do not even know whether we live in one of the first or one
+of the last decades of humanity, every system of universal history in
+which each nation and period is made to take its place in due
+subordination to its superiors, can be only a castle in the air; and it
+is a matter of indifference whether the basis of the system is
+philosophical, socialistic, or natural-philosophical.[265-1]
+
+The usual error into which the builders of such history fall, is that
+they consider the peculiarities of certain stages of civilization, which
+may be shown to exist among all nations in the corresponding period of
+their history as the national peculiarity of the single people with
+whose history they are, for the time being, concerned. They deduce
+wonderful consequences, from the premises they laid down, but which our
+increasing acquaintance with other nations immediately shows to be
+unfounded.
+
+There is, however, a number of facts really peculiar to a people which
+make up the national character, and which may give to an observer
+endowed with an imaginative mind, an inkling to the special vocation in
+the economy of providence of a particular people. That a positive system
+can be constructed from the material of such facts, I do not, indeed,
+think. But they are at least a safeguard against false systems, against
+the improper application of analogies, against the idle, fatalistic
+exaggeration of the maxim: "nothing new under the sun!" It had almost
+become the fashion to compare our present with the period of decline of
+the Greek and Roman republics. Frightful parallel, in which the greatest
+and most undoubted differences were frequently overlooked for smaller
+and certainly questionable similarities. Is not the abolition of
+slavery, which has been accomplished among all the most important
+nations of the present, something new and of great import from a moral
+and economic point of view?[265-2] Can the national wealth, which
+depends on labor and frugality, be in any way compared with that which
+was based on plunder? And so, no one can calculate the benefits which
+may be reaped by posterity from the mere continuation of the scientific
+and especially natural-philosophical results obtained by former
+generations. The discovery of the whole earth soon to be completed, and
+its probable consequence, the civilization of all nations of any
+importance, must remove the danger to which all the civilized nations of
+antiquity eventually succumbed, namely, destruction by entirely
+barbarous hordes. Nor should the significance of the state-system of
+Europe, which might be extended soon enough into a state-system
+embracing the world, be under-estimated. Macedonia would not so readily
+have subjugated the Hellenes and the Persians if the great powers of the
+west, Rome and Carthage, had intervened at the right time. And there,
+too, is Christianity, whose means of grace are at hand for every one at
+all times, for his complete moral regeneration.
+
+In one word, the usual argument with which the "man of experience" meets
+the man of inventive genius, that there never was anything of the like
+seen before, may suffice in thousands and thousands of cases; but it
+affords no strict proof. It is the province of genius to compel rules to
+extend their limits. But science should never forget that self-denial is
+necessary to the discovery of truth.[265-3]
+
+     [Footnote 265-1: I mean here, especially, the attempt so
+     frequently made (by _Herder_, for instance) to draw a
+     parallel between the periods of universal history and the
+     age at different times of the individual, or with the
+     seasons. If there were a great many humanities between which
+     we might institute a comparison, we might accomplish
+     something with the analogy, but----!]
+
+     [Footnote 265-2: However, even such a man as Minister
+     _Stein_, thinks that a laboriously acquired wealth may
+     affect a people's morality injuriously. "The striving after
+     wealth is the striving for the possession of the means of
+     satisfying chiefly sensuous wants. This striving may
+     suppress all nobler feelings, whether it find expression in
+     violence or industry." Contrariwise, it is possible that
+     some of the noblest of human qualities may be found side by
+     side with the forcible acquisition of wealth, viz.: courage,
+     patriotism. (_Pertz_, Leben Steins, II, 466.)]
+
+     [Footnote 265-3: Compare my discourse on the relation of
+     Political Economy to classic antiquity in the transactions
+     of the royal Saxon Academy of Sciences, May, 1849; also many
+     excellent remarks in _Knies_, Polit. Oekonomie. _Chr. J.
+     Kraus_, has zealously discussed the question whether the
+     development of humanity turns about eternally in a circle,
+     or whether it forever advances to a progressively better
+     future. He strongly advocates the latter view, and on
+     grounds which appeal both to the head and to the heart.
+     (Vermischte Schriften, III, 146 ff.; IV, 277 ff.)]
+
+
+
+
+APPENDIX II.
+
+INTERNATIONAL TRADE.
+
+
+
+
+INTERNATIONAL TRADE.
+
+
+SECTION I.
+
+THE MERCANTILE SYSTEM.
+
+The principal peculiarities of the so-called mercantile system depend on
+a five-fold over-estimation: of the density of population, of the
+quantity of money, of foreign commerce, of the industries concerned with
+the transformation of materials (_Verarbeitungsgewerbe_), and of the
+guardianship of the state over private industry.[A2-1-1] All these
+tendencies are very intelligible, and almost self-evident, in a
+sovereign city-economy (_Stadtwirthschaft_) as opposed to the governed
+and worked-out (_ausgebeuteten_) country districts; as they are found
+even in the city-republics of later medieval times. But they are also
+natural in whole national economies, during that period of youthful and
+rapid growth in which the increasing density of population continues
+still, for a long time, to be really only a spur and an assistance, and
+in which, therefore, there can be no expression of anxiety concerning
+over-population; in which the new and rapidly growing division of labor
+draws attention particularly to the market-side of all businesses and to
+the circulation of goods; in which the progress from trade by barter to
+trade by money necessarily makes the volume of money needed even
+relatively greater; but especially are they natural in that world-period
+in which foreign trade suddenly increased enormously in consequence of
+the discovery of the whole earth; when the citizen classes of the people
+assumed immense importance as compared with the landed and clerical
+aristocracy, and when, in the internal affairs of state absolute
+monarchy, and in foreign politics, the system of equilibrium, through
+the instrumentality of the great compact-formation of states prevailed.
+
+All these tendencies are most intimately connected with one another. If
+precious metal-money be really the essence of national wealth,[A2-1-2] a
+people who possess no gold and silver mines themselves;[A2-1-3] for
+instance, Italy, France and England, can become richer only through
+foreign trade,[A2-1-4] by means of a favorable balance produced by a
+preponderance of their exports over their imports; and only inasmuch as
+this excess is balanced by a payment in money from foreign parts. And
+so, too, in foreign trade, one nation can gain only what another nation
+has lost.[A2-1-5] Gain is promoted not only by direct obstacles placed
+in the way of the exportation of the precious metals, but still more by
+the value-enhancement of the exported commodities, and by the
+value-diminution of the imported commodities.[A2-1-6] And as commodities
+which have undergone the process of transformation are, on an average,
+more valuable than raw materials, the state can best carry out this
+policy by import duties, import prohibitions, and export premiums on
+manufactured articles, as well as by export duties, export prohibitions
+and import premiums on raw materials.[A2-1-7] This is extremely
+necessary against those nations who are superior to others in culture,
+wealth, the cheapness of labor and capital; and hence the envy of the
+mercantilists was directed chiefly against Holland, and after Colbert's
+time also against France.[A2-1-8] Such commodities as are not at all
+adapted to the nature of a country, because of its climate, for
+instance, the nation should produce at least in colonies of its own,
+that it might, in this way, emancipate itself from foreign
+countries.[A2-1-9] As the clear distinction drawn to-day between money
+and capital has asserted itself only since Hume's time, the notion that
+prevailed for centuries, that much money, much trade and a large
+population mutually conditioned one another, was a very natural
+one.[A2-1-10]
+
+The younger and more refined conception of the mercantile system is
+distinguished from the coarse Midas-believing one, by two tendencies
+especially:
+
+A. By the more thorough consideration of the balance of trade and the
+consequent limitation of the traditional supposition, that the excess of
+exports over imports would be always made up in cash money.[A2-1-11]
+
+B. By the extension of the field of view, so that not only the direct
+but also the indirect and more remote effects of international trade
+were taken into consideration.[A2-1-12]
+
+A certain over-estimation of the circulation of goods continued to
+characterize even the latest adherents of the mercantile
+system.[A2-1-13] Yet the caricature drawn by the tradition of more
+recent text-books, of the mercantilists, is true only of the inferior
+ones among them.[A2-1-14] The most distinguished of them,
+Botero,[A2-1-15] for instance, approximate more closely to the science
+of the present day than is usually supposed.
+
+     [Footnote A2-1-1: Compare _Roscher_, Geschichte der
+     National�konomik in Deutschland, I, 228 ff.]
+
+     [Footnote A2-1-2: Even the remarkable Florentine pamphlet of
+     1454 (_Jablonowski's_ prize essay of 1878, app. Beilage, 4)
+     complains of the decrease of industry principally on account
+     of the diminution of money caused thereby. "Wealth is
+     money," says _Ernestine_, essay of 1530, on the coin, and
+     explains the smaller wealth of the silver-country, Saxony,
+     as compared with England, France, Burgundy and Lombardy, by
+     the greater exportation of commodities of these countries,
+     by means of which they draw the silver of Saxony to
+     themselves. (_Roscher_, Geschichte, I, 103.) _Bornitz_,
+     Theorie wie sich der Staat diesen _nervus rerum_ in gr�sster
+     Menge verschafft: De Nummis (1608), II, 4, 6, 8. _A. Serra_,
+     Sulle Cause, che possono far abbondare un Regno di Monete
+     (1613), places excess of gold and silver and poverty as
+     diametrical opposites, at the head of his work. _H�rnigk_,
+     Oesterreich �ber Alles, wann es nur will (1684), says that
+     it is "better to give two dollars which remain in the
+     country for a commodity, than only one dollar which goes out
+     of the country" (ch. 9). According to _Schr�der_, F�rstliche
+     Schatz- und Rentkammer (1686), the export of commodities is
+     a blessing only "when we can turn them into silver through
+     our neighbors." (LXX, 12.) Even _Locke_ held similar views
+     (Considerations of the Consequences of the Lowering of
+     Interest, 1691. Further Considerations concerning Raising
+     the Value of Money, 1698). On _Davenant's_ inconsistency in
+     this respect, compare _Roscher_, Geschichte der Englischen
+     Volkswirthschaftslehre, 110 ff. The quantity of money
+     remaining the same, a country grows neither richer nor
+     poorer (Christ. Wolff, Vern�nftige Gedanken vom
+     gesellschaftlichen Leben, 1721, � 476). _J. Gee_, Trade and
+     Navigation of Great Britain considered (1730), bewails the
+     folly of those to whom "money is a commodity like other
+     things, and also think themselves never the poorer for what
+     the nation daily exports," (p. 11). _Justi_, von Manufacturen
+     und Fabriken (1759 seq.), considers it the principal object
+     of industry simply to prevent the outflow of money.
+     Similarly, _Pfeifer_, Polizeiwissenschaft (1779), II, 286.
+     Even Frederick the Great considered it "true and obvious"
+     that "a purse out of which money is taken every day, and
+     into which nothing is put in turn, must soon become empty."
+     (Oeuvres, VI, 77).]
+
+     [Footnote A2-1-3: The thirst for gold which, in the
+     sixteenth and seventeenth centuries, drove so many emigrants
+     to the western Eldorado, reminds one, by reason of its
+     enthusiasm, of the crusades to the Holy Land. The striving
+     after the making of gold which the emperors Rudolph II.,
+     Ferdinand III., Leopold I., Frederick I. of Prussia,
+     Christian IV. of Denmark, Christian II. and Augustus the
+     Strong of Saxony, Heinrich Julius of Braunschweig, Frederick
+     of W�rtemberg, harbored, and also the Silesian and
+     Brandenburg princes even during the Hussite war (_Riedel_,
+     Cod. Dipl. Brandenb., II, 4, 151), was, to a great extent,
+     misplaced philosophy; men went in search of the _materia
+     universalissima_, the _spiritus universalis_, from which all
+     that is receives its _esse et fieri_, the universal elixir,
+     at once the life-power of man, the universal medicine and
+     maturing principle of natural bodies. (_Roscher's_ Gesch.,
+     I, 230.)]
+
+     [Footnote A2-1-4: _Schr�der_ justifies the little estimation
+     in which he holds internal commerce by saying that "a
+     country may indeed grow and become powerful by its means,
+     but cannot gain in wealth;" just as a dress embroidered with
+     pearls is not made more costly by taking the pearls from the
+     cuffs and putting them upon the cape. (F. Schatz- und
+     Rentkammer, XXIX, 3.) According to the Fredrickian
+     theorizer, _Philippi_, "internal trade scarcely deserves the
+     name of commerce." (Vergr�ss. Staat, 1759, ch. 6.) _Sir J.
+     Steuart_ still teaches that an isolated state may, indeed,
+     be happy, but that it can grow rich only through foreign
+     trade and mining. (Principles, II, ch, 13.) The same
+     fundamental thought finds expression in the title of _Th.
+     Mun's_ celebrated book: England's Treasure by Forraign
+     Trade, or the Balance of our Forraign Trade is the Rule of
+     our Treasure (1664).]
+
+     [Footnote A2-1-5: _Il est claire qu'un pays ne peut gagner,
+     sans qu'un autre perde, et qu'il ne peut vaincre sans faire
+     des malheureux_ (_Voltaire_, Dict. phil., art. Patrie). Even
+     _Verri_ was, in his earlier period, of the opinion: _ogni
+     vantaggio di una nazione net commercio porta un danno ad un
+     altra nazione; lo studio del commercio � una vera guerra_
+     (Opuscoli, 335).]
+
+     [Footnote A2-1-6: Even in 1761, the learned _Mably_ could
+     say: _la d�fense de transporter les esp�ces d'or et d'argent
+     est g�n�rale dans tous les �tats de l'Europe ... il n'y a
+     point de voie moins sens�e_ (Droit public, II, 365).]
+
+     [Footnote A2-1-7: The obstacles placed in the way of
+     importation by governments originated, in great part, from
+     views entertained on sumptuary legislation; in that of
+     exportation, from a desire to prevent a scarcity of certain
+     articles, as may be clearly seen in _Patricius_ (De Inst.
+     Reipublic., V, 10, I, 8), and even in _Sully_ (M�moires, XI,
+     XII, XIII, but especially XII), _Bornitz_, _Besold_, _Klock_
+     and _v. Seckendorf_. (Compare _Roscher_, Gesch., I, 191,
+     202, 215, 247.) But the mercantilistic germs show themselves
+     even in _Hutten_ and _Luther_. (_Roscher_, I, 44, 63.) The
+     advance made between the police ordinance of the empire of
+     1530 and that of 1548, is very remarkable in this respect.
+     The mercantile theory of duties appears very systematically
+     elaborated even in _J. Bodinus_, De Republica, 1577, VI, 2;
+     in Germany in _H�rnigk_, Oesterreich �ber Alles, ch. 9.]
+
+     [Footnote A2-1-8: The English jealousy of Holland is
+     represented especially by _Sir W. Raleigh_ (?), Observations
+     touching Trade and Commerce with the Hollander and other
+     nations, 1603, Works, III, 31 ff.; _Sir J. Child_, A new
+     Discourse of Trade (1690), and _Sir W. Temple_, Observations
+     upon the U. Provinces (1672). Compare _Roscher_, Z. Gesch.
+     der englischen V. W. Lehre, p. 31 ff., 125 ff. The English
+     jealousy of France: _Sam. Fortrey_, England's Interest and
+     Improvement (1663). _R. Coke_, A Treatise, wherein is
+     demonstrated that the Church and State of England are in
+     equal Danger with its Trade (1671), and the anonymous,
+     Britannia languens (1680). _Per contra_, especially the
+     work: England's Greatest Happiness, wherein it is
+     demonstrated that a great Part of our Complaints is
+     causeless (1677). Here we find chapters with the title: To
+     export Money our great Advantage; the French Trade a
+     profitable Trade; Multitudes of Traders a great Advantage.
+     _Petty_ gave the best solution to the question in dispute,
+     in his posthumous Political Arithmetic concerning the Value
+     of Lands, etc. _H�rnigk_ would enlist his service in the
+     cause of the jealousy against France, immediately after the
+     disgraceful defeats which Germany in 1680 ff. suffered in
+     the midst of peace, by Louis XIV. Concerning smaller works
+     of the same period and in the same direction, see
+     _Roscher's_ Gesch., I, 299 seq.]
+
+     [Footnote A2-1-9: Even _Peter Martyr_ considered the
+     colonization of countries which yielded the same products as
+     the mother country of no advantage (Ocean, Dec., VIII, 10).
+     On Spanish maps the most flourishing portions of America at
+     present are designated as _tierras de ningun provecho_. And
+     the English for a long time, ascribed value to their New
+     England possessions, so far as the mother country was
+     concerned, only to the extent it was possible to provide the
+     West Indies from that quarter with corn, meat and wood.
+     (_Roscher_, Kolonien, p. 262.)]
+
+     [Footnote A2-1-10: Compare _Botero_, Ragion di Stato (1591);
+     _Law_, Money and Trade (1705), p. 19 ff.; and _Verri_,
+     Opuscoli, pp. 325, 333. Meditazioni (1771), cap. 19.]
+
+     [Footnote A2-1-11: Thus _Child_, spite of all his esteem for
+     the discoverers of the balance-problem, calls attention to
+     cases in which exports suffer so much waste (_Abgang_), or
+     imports are sold so advantageously, that an apparently
+     favorable balance made a people poorer, and an apparently
+     unfavorable one, richer. From the value of the imported
+     commodities the self-earned freight has to be deducted.
+     Countries like Ireland, many colonies, etc., have a
+     preponderance of exportations, because they, by means of the
+     same, pay a rent to absent capitalists or to landowners. (p.
+     312 ff.)]
+
+     [Footnote A2-1-12: _Mun_ admits that, for instance, the East
+     Indian trade makes England richer, although it causes the
+     exportation of much English money. But the exporter of money
+     who, in exchange for it, brings back re�xportable
+     commodities, should be compared to the sower. (Ch. 4.)
+     Similarly, _C. Roberts_, The Treasure of Trafficke (1641),
+     and even _A. Serra_, III, 2. According to _Child_, the loss
+     in the East Indian trade is compensated for chiefly by this,
+     that England obtains there the saltpeter it needs to satisfy
+     its demand, and that the ships engaged in that trade are
+     peculiarly well fitted for war. (l. c.) _Saavedra Faxardo_,
+     for similar reasons, declared the discovery of America to be
+     a misfortune. (Idea Principis Christiani politici, 1649,
+     Symb., 68 seq.)]
+
+     [Footnote A2-1-13: Thus _Law_, _Dutot_, _Darjes_ and
+     _B�sch_. Even the violent opponent of the mercantile system,
+     _Boisguillebert_, could not entirely escape this view.
+     Compare vol. I, � 96.]
+
+     [Footnote A2-1-14: This is true, especially of the
+     protectionist weekly paper: British Merchant or Commerce
+     preserved (1713 ff.), in the contest with the weekly Tory
+     paper edited by _Defoe_: Mercator or Commerce retrieved,
+     which Charles King systematized and published anew in 1721.
+     Later _Ulloa_: Noticias Americanas (1772), cap. 12. _Adam
+     Smith_ also concedes that many of the best writers on
+     commerce, at the beginning of their books, allow that the
+     wealth of a country consists not only in gold and silver,
+     but also in goods of every description; but that further on
+     they tend more and more to forget this qualification of the
+     meaning of wealth. (W. of N., IV, ch. 1.) Hence it is that,
+     in recent text-books, so many are now called adherents and
+     now opponents of the mercantile system.]
+
+     [Footnote A2-1-15: Even _Colbert_ says: nothing is more
+     precious in a state than the labor of men (Lettres,
+     Instructions et M�moires de C. publi�s par P. Clement, 1861
+     ff., II, 105). The great trade with foreign countries and
+     the small trade in the interior contribute equally to the
+     welfare of nations. (II, 548.) I would not hesitate to do
+     away with all privileges, the moment I found that greater or
+     as great advantages attended their abolition. (II, 694.) His
+     duty-system of 1664 was a simplification, but also an
+     important diminution of his earlier chaotic tariff. (II, 787
+     ff.)]
+
+
+SECTION II.
+
+REACTION AGAINST THE MERCANTILE SYSTEM.
+
+The reaction against the mercantile theory of the balance of trade,
+which reached its height in Adam Smith, was based principally upon the
+following considerations:
+
+A. Precious-metal-money is a commodity like all other commodities, and
+therefore useful only for certain purposes. It is as little to the
+wealth-interest of a people, by means of a continually favorable
+balance, to import infinite quantities of the precious metals, as it is
+to its power-interest, by means of its commercial policy, to accumulate
+infinite stores of powder. The person who possesses other exchangeable
+goods will be as well able, in case of need, to obtain gold and silver
+therewith as to obtain powder.[A2-2-1] We part with no capital when we
+export the precious metals and import other commodities instead; we
+simply exchange thereby one form of capital for another.[A2-2-2] The
+notion that the gain in trade is coincident with the balance of account
+paid in cash, is just as palpably false in the trade among nations as in
+trade among private persons.[A2-2-3] It would be a decided hardship to
+most men, if they were to receive payment at once in money for all that
+they possessed: and the nation is made up of individuals.[A2-2-4] And
+even the reasons which make payments in cash more uniformly desirable,
+in the case of private persons not engaged in mercantile pursuits, cease
+in the case of whole nations.[A2-2-5]
+
+B. But a continual over-balance (_Ueberbilanz_) is not at all possible.
+Every relative increase of the amount of money must enhance the price of
+commodities, lower the value of money, and thus produce an exportation
+of money until a restoration of the level with other countries.[A2-2-6]
+The prohibitions of the exportation of money, so often resorted to, can
+avail nothing, because the precious metals are among the specifically
+most valuable goods; and because it is easier yet to smuggle them out of
+a country than to smuggle them into it.[A2-2-7]
+
+C. The signs by which the mercantile system supposed it could estimate
+the favorableness of the balance of trade are essentially
+deceptive.[A2-2-8] We cannot, for instance, from the course of exchange,
+determine whether the payments made by us to foreign countries have been
+made for purchases, to absentees, etc., or as loans; and yet, according
+to the mercantilists, the latter are as useful to us as the former are
+injurious.[A2-2-9] And even the most accurate tariff-record
+(_Zollregister_) of the exportation and importation of commodities
+affords no guaranty[A2-2-10] that, in many instances, the rendering of
+the counter-value may not remain absent, by reason of bankruptcy,
+shipwreck, or the emigration of property.[A2-2-11]
+
+D. Every act of exchange is advantageous only because through it a
+greater value is received than the one parted with was. (?) Fortunately,
+in normal trade, where both parties satisfy a real want, and neither
+party is deceived, this is actually the case on both sides.[A2-2-12] In
+accordance with all this,[A2-2-13] Baudrillart is of opinion that the
+whole theory of the balance of trade no longer exists.
+
+     [Footnote A2-2-1: Even _Petty_ and _North_, with their deep
+     insight into the nature and functions of money, could not
+     possibly entertain the mercantile theory of the balance of
+     trade. _Petty_ considers the exportation of money useful,
+     even when commodities are brought back in exchange for it,
+     and which are of greater value in the interior than the
+     exported money. (Quantulumcunque concerning Money, 1682.)
+     According to _North_, no one is richer simply because he has
+     his property in the form of gold and silver plate, etc.; he
+     is even poorer, because he allows his goods to lie in that
+     shape unproductive. Hence the importation of money is, in
+     itself, not more advantageous than the importation of logs
+     of wood; at most, the difference that, in case of excess, it
+     would be easier to get rid of the money than of the wood, is
+     of importance. Therefore, a state need never care very
+     anxiously for its supplies of money. A rich nation will
+     never suffer from a want of money. (Discourses upon Trade,
+     1691, pp. 11, 17.) According to _Berkeley_ (Querist, 1735,
+     pp. 566 ff.), there is no greater error than to measure the
+     wealth of a nation by its gold and silver. It is to the
+     interest of a people to keep their money or to send it off
+     according as its industry is thereby promoted. _Quesnay_
+     declares it to be impossible that the exports of a country
+     should be permanently greater than its imports: _tout achat
+     est vente et toute vente est achat_.
+
+     _Adam Smith_ (W. of N., IV, 1) compares the Spanish
+     discoverers who inquired on every island, first of all, for
+     gold, to the Mongolians, whom _Rubruquis_ (c. 32) was
+     obliged to give information to concerning the cattle of
+     France: "of the two, perhaps the Tartar nation was the
+     nearest to the truth." Precious-metal-money may be even more
+     easily dispensed with than most other commodities, since, in
+     case of necessity, it can, by reason of its greater
+     transportability be readily obtained from without, and can
+     also be supplied by exchange and by credit. "Money makes but
+     a small part of the national capital and always the most
+     unprofitable part of it.... Money necessarily runs after
+     goods, but goods do not always or necessarily run after
+     money." _J. B. Say_ calls the exportation of money more
+     advantageous than that of other commodities, because the
+     former is of use, not through its physical qualities, but
+     only through its value, and the value of the money which
+     remains behind correspondingly rises by reason of the
+     exportation. (Trait�, I, ch. 17.) Compare especially
+     _Bastiat_, Maudit Argent, 1849.]
+
+     [Footnote A2-2-2: Against _Ganilh_, Th�orie de l'Economie
+     politique, II, 200.]
+
+     [Footnote A2-2-3: Even _Mun_ had, in every balance of trade,
+     distinguished three persons who participated in it; the
+     merchant might lose when the nation in general gained, and
+     _vice versa_; the king, with his duties, always gained. (Ch.
+     7.) The British Merchant (p. 23) maintained even, that when
+     the merchant himself gains nothing and takes his
+     back-freight (_R�ckfracht_) in money, his country gains the
+     whole amount thereof.]
+
+     [Footnote A2-2-4: "Every individual is continually exerting
+     himself to find out the most advantageous employment for
+     whatever capital he can command. It is his own advantage,
+     indeed, and not that of the society, which he has in view.
+     But the study of his own advantage, naturally, or rather
+     necessarily, leads him to prefer that employment which is
+     most advantageous to the society." (_Ad. Smith_, W. of N.,
+     IV, ch. 2.)]
+
+     [Footnote A2-2-5: For the reason that money, in
+     international trade, for the most part, loses its character
+     as money, and appears more as a commodity. Exhaustively in
+     _Adam Smith_ and _J. B. Say_, l. c. The English state paid,
+     during the French war of the Revolution, in subsidies to
+     foreign countries, �44,800,000; and yet, up to the end of
+     1797, imperial loans and the payments of private individuals
+     included, not as much as one million in cash went out of the
+     country. (_Rose_, Brief Examination into the Increase of the
+     Revenue of Great Britain, 1799.) When France paid the five
+     milliards to Germany, the plus value of English exportation
+     to Germany above the English importation thence rose from
+     274,000,000 (1869) to 478,000,000 (1872), and the increase
+     in the amount of French from 39,400,000 (1869) to
+     131,700,000 (1873). The entire German under-balance
+     (_Unterbilanz_), _Soetbeer_ (loc. cit.) estimates at
+     878,000,000 of marks.]
+
+     [Footnote A2-2-6: Emphasized especially by _David Hume_ who
+     calls attention to the seeking of its level by water.
+     (Discourses: On the Balance of Trade.) _J. B. Say_ speaks of
+     carriages, the increase of which over and above the need of
+     them must infallibly produce a re�xportation of them.
+     (Trait�, I, ch. 17.)]
+
+     [Footnote A2-2-7: With all the severity of its export
+     prohibitions, Spain, for centuries, served as a medium to
+     conduct the streams of American silver to the other parts of
+     Europe. As to how Spain, during the last third of the 18th
+     century, was overflowed by copper money, see _Campomanes_,
+     Educaci�n popular, IV, 272.]
+
+     [Footnote A2-2-8: _von. Schr�der_, F. Schatz- und
+     Rentkammer, XXVII, has a very ingenuous faith in the rate of
+     exchange and a tariff-record (_Zollregister_); while _Child_
+     had a much better insight into the defects of these two
+     criteria. (Disc. of Trade, p. 312 ff.) Compare _Steuart_,
+     Principles, III, 2, ch. 2.]
+
+     [Footnote A2-2-9: Compare � 199. It was a discovery of
+     _Locke's_, that borrowing from foreign countries was
+     advantageous in all those instances in which the inland
+     borrower earned more than the amount of his interest by
+     means of the loan. (Considerations, p. 9.)]
+
+     [Footnote A2-2-10: _S�gur_, M�moires, II, 298, tells how the
+     Russian officers of custom were bribed by English merchants
+     to represent the Russian imports from England _under_, and
+     the exports to England _above_ the true value. In addition
+     to this, smuggling was carried on!]
+
+     [Footnote A2-2-11: _J. B. Say_ calculates from the English
+     tariff-record (_Zollregister_), from the beginning of the
+     18th century to 1798, an excess of exports over imports of
+     �347,000,000; and yet the highest estimates of the amount of
+     money actually in England, according to _Pitt_ and _Price_,
+     gave only �47,000,000. (Trait�, I, IV, 17.) The Russian
+     lists of exports and imports from 1742 to 1797, show a
+     favorable balance of 250,000,000 rubles; to which must be
+     added 88,000,000 rubles taken from the mines during the same
+     time. But it is notorious that the stores of money
+     diminished. _Storch_, Gem�lde des russischen Reiches, XI,
+     12.]
+
+     [Footnote A2-2-12: Manuel, 310. _F. B. W. Herrmann_ (M�nch.
+     gelehrte Anz. XXV, 540) also declares the whole theory of
+     the balance of trade wrong. According to _Brauner_, Was sind
+     Maut und Zollanstalten (1816), 51, it is "a mere fancy."]
+
+     [Footnote A2-2-13: Recognized even by _Ch. Davenant_, On the
+     probable methods of making a People Gainers in the Balance
+     of Trade (Works, II, p. 11).]
+
+
+SECTION III.
+
+FURTHER REACTION AGAINST THE MERCANTILE SYSTEM.
+
+Simultaneously with this opposition, the theory of the international
+balance of trade underwent important refinements, a new and improved
+edition, so to speak, of old Colbertism.[A2-3-1] Each school is wont to
+estimate the favorableness of the balance according to the preponderance
+of that which they consider the most important element in a nation's
+economy. Thus the population-enthusiasts, after the middle of the 18th
+century, distinguished the "balance of advantage" from the "merely
+numerical:" the former is favorable to the country which, by means of
+its exports, employs and feeds the greatest number of men; the latter to
+the country with a preponderating importation of money. And they call
+the former much more important than the latter.[A2-3-2] The great
+advance which this view constitutes over the old system lies chiefly in
+two points: that the number and employment of men are evidently, so far
+as the whole national economy and national life are concerned, a much
+more important element than the quantity of money in a country; and
+further, that now, at least, the possibility of a simultaneous profit on
+both sides is admitted.[A2-3-3] The best writer in this direction, Jos.
+Tucker, is among the great-grand-parents of the Manchester theory of
+to-day!
+
+A further advance was made by men who introduced the higher notions of
+nationality and of the stages of civilization into the theory of
+international trade. Thus, at about the same time, the socialistic J. G.
+Fichte, with his shut-in commercial state, and the romantic reactionary,
+Ad. M�ller, with his organic whole of national economy.[A2-3-4] Finally,
+Fr. List,[A2-3-5] with his "National system of Political Economy," and
+his severe subordination of the mere "agricultural state" to the
+"agricultural, manufacturing and commercial state," acknowledges the
+favorableness of the balance in the nation which by means of the
+exportation of manufactured articles, the importation of the means of
+subsistence and of articles to be manufactured, demonstrates and
+promotes its higher stage of civilization.[A2-3-6]
+
+     [Footnote A2-3-1: Compare _Mengotti_: Il Colbertismo (prize
+     essay of the Georgofili at Florence), 1791. If, with _H.
+     Leo_, we were to designate the whole period from the issue
+     of the struggles of the Reformation to the preparations of
+     the French Revolution as the "age of the mercantile system,"
+     _Colbert_ would be a very appropriate type of it.]
+
+     [Footnote A2-3-2: Compare � 254. Here belong _Forbonnais,
+     Necker, Tucker_ (Important Questions, IV, 11; V, 5; VII, 4;
+     VIII, 5. Four Tracts, 1774, I, p. 36); _Justi_ in his middle
+     period (_Roscher_, Gesch. der N. O. in Deutschland, I, 451
+     ff.); but especially _Sonnenfels_ (politische Abhandlungen,
+     1777, Nr. 1), who sees the best sign of a favorable balance
+     in the increase of population. (Grunds�tze, II, 333.) When
+     Austria, for 2,500,000, purchases diamonds _of_ Portugal,
+     and sells Portugal linen to the amount of 2,000,000, it has
+     the numerical balance against it, but obtains the "balance
+     of advantage." (II, 329 seq.) With an admixture of
+     physiocratism, this doctrine appears in _Cantillon_, Nature
+     du Commerce, 1755, p. 298 ff.; with an admixture of free
+     trade, in _B�sch_, Geldumlanf, V, 12.]
+
+     [Footnote A2-3-3: _Justi_, Chim�re des Gleichgewichts der
+     Handlung und Schiffahrt (1759), supposes a gain on both
+     sides in all commerce between nations. Hence, no nation can
+     attain to a flourishing trade in any way except it be to the
+     advantage of those with which it has to do. (p. 14 ff., 43.)
+     Here, it may be presumed, _Hume's_ Essay, On the Jealousy of
+     Trade, exercised an influence. _Sonnenfels_ distinguishes,
+     in foreign trade, five grades of advantage: 1, most
+     advantageous, when finished commodities are exported and
+     cash money is imported; 2, when finished commodities are
+     exchanged for raw materials; 3, finished commodities against
+     finished commodities; 4, raw material against raw material;
+     5, raw material against finished commodities. (Grunds�tze,
+     II, 202.)]
+
+     [Footnote A2-3-4: It is as necessary that every nation
+     should constitute a separate commercial body as that it
+     should be a separate political and juridical body. The
+     person who asks: why should I not have commodities in all
+     the perfection in which they are made in foreign countries?
+     might as well ask: why am I not completely a foreigner?
+     (_Fichte_, Geschloss. Handelstaat, 1800: Werke, III, 476,
+     411.) _Ad. M�ller_ compares universal freedom of trade to a
+     universal empire, which will ever remain a chimera.
+     (Elemente der Staatskunst, 1809, I, 283.)]
+
+     [Footnote A2-3-5: _List_ (Werke, II, 31 ff.) had, after
+     1818, recognized that a _passive_ balance for whole nations
+     was possible, if they were not able to cover their wants,
+     supplied from abroad and then consumed, by their income, but
+     were obliged to make inroads on their national capital.]
+
+     [Footnote A2-3-6: _Ch. Ganilh_, who expects a real
+     enrichment of a nation only from foreign trade (Dictionnaire
+     de l'E. P., 1826, p. 131), ascribes the most favorable
+     balance to the nation that exchanges dear labor against
+     cheap; that is, principally to a nation of tradesmen as
+     contradistinguished from a nation of agriculturists.
+     (Theorie de l'E. P., 1822, II, 239 ff.)]
+
+
+SECTION IV.
+
+PARTIAL TRUTH OF THE MERCANTILE SYSTEM.
+
+But even among the successors of Hume and Smith, a deeper insight into,
+so to speak, the physics of money and of international trade must have
+led to the recognition of many a truth which the mercantile system had,
+indeed, badly formulated, insufficiently proved, but which it had,
+nevertheless, an inkling of. And, indeed, how frequently it happens that
+the progress of science proceeds from one one-sidedness, through another
+opposed but higher one-sidedness, to the all-sidedness which knows no
+prejudice!
+
+A. Precious-metal-money is, indeed, a commodity, but of all commodities,
+the most current, the most many-sided in its utility, the most
+economically energetic, and at the same time of peculiarly great
+durability.[A2-4-1] Money-capital, far from being the least useful
+portion of a nation's capital, is rather one of its most important
+parts; and especially in the higher stages of civilization, where the
+division of labor has been most largely developed, is it peculiarly
+productive and indispensable.[A2-4-2] Here it is really more likely that
+the possessor of commodities may be wanting the wished for money, than
+that the possessor of money should be wanting in the wished for
+commodities. And, hence, the numerous half mystic expressions of the
+magical power of money, which have passed into literature from the
+common usage of the people, can be, by no means, considered mere errors.
+
+B. Just as little, can the impossibility of the preponderant importation
+of money for a long time, be asserted. Hume's rigid theory of a level,
+by no means, exactly corresponds with the reality. The precious metal
+which is, indeed, imported, but which does not subsequently enter into
+the circulation, need exert no influence whatever on the prices of
+commodities in general; and may, therefore, remain permanently in the
+country. Think only of the articles made of the precious metals, which
+minister to luxury,[A2-4-3] of buried private treasure, of the treasures
+of the state, which are idly stored up; as well as of a portion at least
+of most cash on hand.[A2-4-4] From the other side, also, the
+over-balance or under-balance (_Ueber-oder Unterbilanz_) of a country may
+continue, a very long time, when its internal trade with its money-need
+is, in the first case, an increasing, and in the last, a decreasing one.
+So far, the preponderance of the importation of money may be called a
+favorable sign and the preponderance of the exportation of money an
+unfavorable one. And the person who thinks that a permanent
+preponderance of exports or imports is not at all possible in the way of
+commerce, overlooks the possibility of a very extensive national
+indebtedness.[A2-4-5]
+
+C. But a distinction should be made between the _balance of payments_
+and the _balance of trade_ in the narrower sense of the
+expression.[A2-4-6] In the case of the latter, to be complete, it is
+necessary to carry to the credit side of the account: 1, The exports of
+commodities; 2, the profit made by parties at home by realizing on
+(_Realisierung_) the exports in foreign countries; 3, the freight-profit
+made by parties at home on exports and imports, as well as in foreign
+carrying trade (_Zwischenverkehr_); 4, the sale of inland ships in
+foreign countries; 5, premiums and compensation for damage on account of
+maritime insurance from foreign countries. On the debit side, on the
+other hand, the corresponding items when foreigners have received from
+the home country, as in the case of imports, etc. To obtain the general
+payment-balance, we have still, in addition, on the credit side: 1, The
+profit from home participation in enterprises in foreign countries and
+the transfers of capital originating therefrom; 2, the interest and
+repayments of money-capital loaned in foreign countries; 3, the sale of
+stocks (_Effecten_) to foreign countries as well as new loans to which
+the home country makes in foreign parts; 4, remittances from foreign
+countries to foreigners sojourning in the home country, and money
+brought with them by travelers and emigrants; 5, inheritances, pensions
+and extraordinary payments from foreign countries. Then, too, on the
+debit-side, belong the corresponding counter-items.[A2-4-7] If we, in
+this way, take a survey of the whole world, we shall perceive a treble
+current of the precious metals. The first and most regular goes, in long
+lines, from mining countries, over to the commercial countries of the
+world, and distributes the newly acquired gold and silver as commodities
+according to the wants of the coinage, of manufactures, etc. The second
+oscillates, as it were, in short waves from country to country, in order
+to adjust the _plus_ or _minus_ for the time being of payment-balances.
+Lastly, regular sudden currents, with slow subsequent counter-currents,
+when single economic districts require to make extraordinary drafts or
+shipments of the precious metals, by reason of bad harvests, war, a
+disturbed double standard, etc.
+
+D. Since international indebtedness has so much increased, precisely the
+richest nations may have the greatest regular excess of exports over
+imports; partly because of the great amount of capital, etc., which they
+possess in foreign countries; partly because of the great development of
+their system of credit in the interior, by means of which they find
+substitutes for so great a part of the metallic currency.[A2-4-8]
+
+     [Footnote A2-4-1: _Locke_, Civil Government (1691), � 49,
+     seq., emphasizes this durability of the value-preserving
+     metallic money, in opposition to the perishable articles of
+     consumption, as a principal element in the development of
+     private property and of economic civilization. But even
+     _Petty_ ascribes to the precious metals a higher quality as
+     wealth than to any other commodity, for the reason that they
+     are less perishable, and possess value always and
+     everywhere. Hence, he esteems foreign trade more highly than
+     inland trade, and would have those businesses which import
+     the precious metals protected more than others against
+     taxation. (Several Essays, 1682, p. 113, 126, 159.) _Adam
+     Smith_ also recognizes this, at least so far as intermediate
+     trade is concerned. (W. of N., IV, ch. 6.)]
+
+     [Footnote A2-4-2: Even _Rau_, in his additions to _Storch_
+     (1820), p. 397, concedes the peculiarly charming, vivifying
+     power, which money possesses to an extent greater than any
+     other commodity. Well distinguished whether the money-want
+     of a country is already fully satisfied or not. (Ansichten
+     der Volkswirthschaft, 1821, p. 157.) _Carey_ exaggerates
+     when he calls money the cause of the movement in society,
+     out of which force is produced, what coal is to the
+     locomotive, or food to the animal body (Principles of Social
+     Science, ch. XXXII, 5), or the only want of life for which
+     there is a universal demand. (Ch. XXXIII, 1.) But he rightly
+     calls it the "instrument of association." Excellent
+     demonstration, as to how, at the sudden outbreak of a war,
+     of a revolution, etc., all those who have money on hand,
+     even when they had previously obtained it while peace still
+     prevailed, in the form of a loan, are in an infinitely
+     better position than the owners of the otherwise most useful
+     commodities. (Ch. XXXVII, 12.) Earlier yet, _P. Kaufmann_
+     placed the "principal character of money" in this, that it
+     was "most perfect property (_Verm�gen_);" and he calls its
+     quality as a commodity, philosophically considered, in
+     question; and judges the balance of trade according to this,
+     that in commodities, interest-yielding as well as dead
+     capital is exported, but in money-capital, which is always
+     gain-engendering. (Untersuchungen im Gebiete der politischen
+     Oekonomie, 1829, I, 4, 74, 80.)]
+
+     [Footnote A2-4-3: In England, _Patterson_ estimates the
+     regular additional importation (_Mehreinfuhr_) of money at
+     from four to five millions sterling, of which the greater
+     part is devoted to purposes of luxury. (Statist. Jrl., 1870,
+     217.)]
+
+     [Footnote A2-4-4: _Fullarton's_ view (Regulation of
+     Currencies, 1844) suffers from exaggeration. _Knies_, Geld
+     and Credit, II, 285, very well shows that the "hoards" are
+     by no means mere idle stores, and that, therefore, their
+     void produced by the exportation of money must be soon
+     filled up again. _Adam Smith_, even, may be considered a
+     predecessor of _Fullarton_. (W. of N., ch. 2, p. 250, Bas.)]
+
+     [Footnote A2-4-5: Even _B�sch_ (Werke, XIII, 26) says that
+     the under-balance (_Unterbilanz_) of the Scotch vis-a-vis of
+     England was for a long time made up in two ways, by the
+     marriage of wealthy English heiresses and by Scotch
+     bankrupts. Thus the troops, who, in the 17th century, were
+     traded over to France, and in the 18th, to England by German
+     princes, brought the money, in part, back again, which was
+     exported by the unfavorable balance. According to _List_,
+     the exported metals, after they have risen in price with us,
+     flow back to us again; not, however, as exchangeable
+     articles, but in the form of a loan, by which it is made
+     possible for us to dispose of them again, and again to
+     receive them in this shape. (Werke, II, 37.)]
+
+     [Footnote A2-4-6: Thus even _J. Steuart_, Principles, IV, 2,
+     ch. 8.]
+
+     [Footnote A2-4-7: Compare _Soetbeer_ in _Hirth's_ Annalen
+     des deutschen Reiches, 1875, p. 731 ff.]
+
+     [Footnote A2-4-8: British Europe had from 1854 to 1863, a
+     yearly surplus amount (_Mehrbetrag_) of imports of at least
+     266, and at most 1190 millions of marks, in the average, 764
+     millions; from 1864 to 1873, of at least 802 millions, and
+     at most 1388 millions, an average of 1104 millions; whereas,
+     on the other hand, Australia, besides its great exportation
+     of gold, exhibits a great excess of exports of commodities
+     over imports. France, too, from 1867 to 1869, had attained
+     to an average surplus importation (_Mehreinfuhr_) of 211
+     million marks; which is related to the fact that, according
+     to _L. Say_, it received about from 600 to 700 million
+     francs a year in interest from foreign countries; and that
+     from 200 to 300 million francs were expended by foreigners,
+     etc., traveling in France. Similarly, in the case of
+     governing countries vis-a-vis of their dependencies; whence
+     even the old mercantilists entertained no doubt of the
+     enrichment of the former. Thus France, in 1787 ff., had a
+     yearly importation of 613 million livres, and an exportation
+     of 448 millions, because the colonies sent to France 150
+     millions more than they drew therefrom. (_Chaptal_, De
+     l'Industrie, Fr., I, 134.) Hungary, from 1831 to 1840, had a
+     yearly exportation of 46 million florins to Austria, and an
+     importation of only 30 millions. (_List_, Zollvereinsblatt.
+     1843, No. 49) Algiers drew from France in 1844 to the amount
+     of 83 million francs, and found a market there for only 8
+     millions (Moniteur), which no one will consider an
+     enrichment of France. The great preponderance of French
+     exports in 1831, 1848 and 1849, of Austrian, between 1874
+     and 1876, a sign of diminished purchasing capacity! When
+     England, in March, 1877, imported to the amount of
+     �35,230,000, and exported to the amount of �16,921,000
+     (against �27,451,000 and �17,739,000 in March, 1876), the
+     Economist sees therein a sign that many outstanding debts
+     were called in.]
+
+
+SECTION V.
+
+THE ADVANTAGES OF INTERNATIONAL TRADE.
+
+The truth that no exportation is permanently possible without
+importation, and that, in international trade, also, both sides better
+their condition, was clear to the Italians in the fifteenth century, and
+in the sixteenth and seventeenth centuries to the Netherlanders.[A2-5-1]
+
+Every nation can, through its instrumentality, for the first time,
+acquire not only those commodities which nature entirely refuses to it,
+but such also which it can itself produce only at a great cost.[A2-5-2]
+And here it is not so much the absolute costs of production as the
+comparative which are decisive.[A2-5-3] The country A may be superior to
+the country B in all kinds of productiveness; but when this superiority
+for the group of commodities _x_ amounts to only 50 per cent., and for
+the group _y_, on the other hand, to 100 per cent., it is to the
+interest of A, which possesses only a limited quantity of the factors of
+production, to produce a surplus of the commodities _y_, and to exchange
+that surplus against what it wants of _x_.[A2-5-4] B, also, would
+willingly agree to this, even if it were not to get the commodities _y_
+entirely as cheap as A might supply them, but still decidedly cheaper
+than their production would cost in B itself. But, if both parties
+derive advantage from international trade, there is no necessity
+whatever that this advantage should be equally great on both sides. As
+in every struggle over prices, the gain here also is greatest on the
+side of the nation whose desire to hold fast to their own commodities is
+farthest from being outweighed by the want of the foreign commodity, and
+which, at the same time, employs most productively the equivalent
+received in imports in exchange for its exports.[A2-5-5] Yet, in
+estimating this productiveness, it is necessary to take the whole
+national life into consideration.[A2-5-6]
+
+The international distribution of the precious metals is subject to the
+same law. These, also, are procured most cheaply by the nation which,
+directly or indirectly (by the production of counter values wished for
+by the whole world), employs the most productive economic activity upon
+them, and at the same time (it may be by especially well developed
+credit), is in the least urgent need of them.[A2-5-7] Therefore, on the
+whole, their value in exchange is wont to be lowest among the richest
+and most highly cultivated nations.[A2-5-8] Such a relative cheapness of
+gold and silver is not only a symptom of economic power, but considering
+the pre�minent energy of these very commodities, at the same time, a
+means to procure most foreign commodities with a smaller expenditure of
+one's own forces.[A2-5-9] Hence, a great change in the distribution,
+hitherto usual, of the precious metals, produced, possibly, by great
+advances made in production here, or by an increase in consumption
+there, or by means of commercial prohibitions, etc., may be just as
+advantageous to the country which receives more as hurtful for the
+country which pays more;[A2-5-10] and both, all the more as the
+revolution in prices enhances the most productive elements of the nation
+there, and here the most unproductive.[A2-5-11] Hence, even when it
+cannot, in general, be said that one branch of commerce, carried on in a
+normal manner, should necessarily remain behind another in economic
+productiveness, those which have nothing to fear from a disturbance of
+their balance by the measures of foreign states are distinguished by the
+greatest security, and those are capable of the greatest growth which
+exchange articles to be manufactured (_Fabrikanden_), and the means of
+subsistence against ordinary manufactured articles.[A2-5-12] [A2-5-13]
+
+     [Footnote A2-5-1: _M. Sanudo_, in Muratori Scriptores, XXII,
+     950 ff., and the Netherland decree of February 3, 1501, in
+     the Journal des Economistes, XIII, 304. Then, _Salmasins_,
+     de Usuris (1638), p. 197. _Child_, _Becher_ and _Temple_ had
+     all made their studies in Holland. Compare, besides, even
+     _Plato_, De Rep., II, 371.]
+
+     [Footnote A2-5-2: _J. S. Mill_ rightly calls it a remnant of
+     the mercantile system that _Adam Smith_ still saw the
+     principal utility of foreign trade in the market for the
+     home production which is thereby increased. But this utility
+     is to be looked for not so much in what is exported as in
+     what is imported. (Principles, II, ch. 17, 4.)]
+
+     [Footnote A2-5-3: Compare _v. Mangoldt_, Grundriss der V. W.
+     L., 185 ff. By the English, the discovery of this truth is
+     attributed to _Ricardo_, Principles, ch. 7. Compare the
+     further development in _J. Mill_, Elements (1821), III, 4,
+     13 seq.; _Torrens_, The Budget (1844) and _J. S. Mill_,
+     Essays on some unsettled Principles of Political Economy
+     (1844), No. 1, and Principles, III, ch. 18 ff. But even
+     _Jacob_, Grunds�tze der Polizeigesetzgebung (1809, p. 546
+     ff.), was acquainted with the truth that generally both
+     sides gained, but the one party, possibly more than the
+     other. According to _Lotz_, Revision (1811), I, 161, the
+     gain and loss of each party rises and falls in proportion to
+     the difference between the degrees of value which each
+     party, so far as he is himself concerned, attaches to the
+     goods given and the goods received. And even _Cantillon_,
+     Nature du Commerce (1155), p. 226, 369 ff., had a
+     presentiment of the reason why countries having a low value
+     in exchange of money can continue notwithstanding to sell in
+     foreign countries. And so, too, _Hume_, Essays (1752), On
+     Interest, who, without looking through the spectacles of the
+     mercantile system, perceived that countries with a
+     flourishing trade must necessarily draw much gold and silver
+     to themselves. Recently, _Cairnes_ has shown by practical
+     examples that Australia imports Irish butter and Norwegian
+     wood, and the Barbadians meat and flour from New York,
+     although both might themselves produce such articles
+     cheaper. (Essays, etc., 1873. Leading Principles, 1874, p.
+     379.)]
+
+     [Footnote A2-5-4: Thus a Kaulbach might more expertly
+     ornament his own door and window frames than an ordinary
+     room-painter, but does not do so, because he can employ his
+     time to better advantage.]
+
+     [Footnote A2-5-5: Even _Law_, Money and Trade, p. 31, was of
+     opinion, that when a nation consumes its imports which are
+     greater than its exports, it grows poorer, not in
+     consequence of the importation, but of the consumption.
+     _Quesnay_ calls attention to the _plus on moins de profit
+     qui r�sulte des marchandises m�mes que l'on a vendues et de
+     celles que l'on a achet�es. Souvent la perte est pour la
+     nation qui re�oit un surplus en argent, et cette perte se
+     trouve au pr�judice de la distribution et de r�production
+     des revenus_. (Max. g�n�r., 24.)]
+
+     [Footnote A2-5-6: _Rau_ distinguishes principally whether
+     importation brings articles of luxury or means of
+     acquisition (_Erwerbstamm_) into the country. (Ansichten der
+     V. W., 163.) Similarly, _de Cazcaux_, El�ments d'Economie
+     priv�e et publique (1825), p. 188 ff. _Schmitthenner_, Zw�lf
+     B�cher vom Staate (1839), I, 497. "A favorable balance of
+     trade does not make a people richer because they receive the
+     metals for other values, but because they produce and sell
+     more than they purchase and consume; the result of which
+     naturally is that the difference must consist in values
+     capable of being capitalized." Kaufmann draws a distinction
+     according as the imported goods come into the country in the
+     form of dead or interest-bearing capital. He illustrates his
+     view by the case of a peasant who sells his seed-corn in
+     order to purchase a finer hat with the proceeds.
+     (Untersuchungen, I, 96, 81 seq.)]
+
+     [Footnote A2-5-7: International trade makes imported
+     commodities cheaper and exported commodities dearer, but the
+     aggregate of consumers gain more in the former case than
+     they lose in the latter, because they now enjoy the
+     blessings of the international division of labor. But, even
+     with this general enrichment, single classes of the people,
+     and even the majority, may have to suffer; as, for instance,
+     when in the exchange of corn against iron, the cheapening of
+     the iron profits the people less than the consequent
+     dearness of corn injures them. (_Fawcett_, Manual, 391.)]
+
+     [Footnote A2-5-8: "Gold and silver are by the competition of
+     commerce distributed in such proportions amongst the
+     different countries of the world as to accommodate
+     themselves to the natural traffic which would take place if
+     no such metals existed and the trade between countries were
+     purely a trade of barter." (_Ricardo_, Principles, ch. 7.)
+     In most direct opposition to the mercantile system, he
+     represents the distribution of the precious metals to be not
+     the cause but the effect of national wealth. A nation
+     rapidly growing in wealth will obtain and keep a larger
+     quota of the general supply of gold and silver. (The high
+     Price of Bullion, 1810.) On the other hand, it depends on
+     the one-sided abstraction with which _Ricardo_ loves to
+     pursue certain assumptions, that every exportation of money
+     is made to signify a peculiar cheapness of money, and _vice
+     versa_. (Opposed by _Malthus_, Edinb. Rev., Febr., 1811.)
+     _Carey's_ frequently repeated assertion, that gold and
+     silver always flow towards those markets where they are
+     cheapest (Principles of S. Science, I, 150, and passim),
+     confounds cause and effect.]
+
+     [Footnote A2-5-9: Compare � 126, and even _Kaufmann_,
+     Untersuchungen, I, 75 seq.]
+
+     [Footnote A2-5-10: Let us suppose that, hitherto, the
+     English had supplied their demand for wine from France, and
+     paid therefor in commodities made of steel; and that now
+     France prohibits the importation of the latter and requires
+     gold instead. If the English take this gold out of their own
+     circulation, the value in exchange of the gold which remains
+     to them rises; the prices of all commodities fall, state
+     debts and private debts become more oppressive, etc. If, to
+     avoid this, they send their steel wares, which France has
+     rejected, to California, to obtain gold there in exchange,
+     they find that California has as much of steel wares as it
+     requires, and that it can be induced to extend its
+     consumption of them only by a corresponding lowering of
+     their price. But if, on the other hand, the gold which has
+     flowed towards France has produced a rise in the price of
+     commodities, and a decrease in the exportation of
+     commodities; and has then flowed out of the country, to
+     Germany for instance; England may in consequence be placed
+     in a position to effect its payments for French wine with
+     the gold which its manufactured articles have been exchanged
+     against in Germany. But all this always supposes that the
+     prices of commodities have fallen in England and risen in
+     other countries; that is, a changed and, so far as England
+     is concerned, an unfavorable distribution of the precious
+     metals--which is found in connection with a relatively
+     decreased productiveness of English labor. The English cost
+     of production may yet continue to be covered,
+     notwithstanding; but, when it has been diminished by a
+     lowering of wages, interest, etc., the national wealth
+     suffers in consequence. Compare _Torrens_, Budget, p. 50
+     ff., who precisely on this bases the greater security of
+     trade between the mother country and its colonies; and which
+     also found expression in the Peel reform plan of 1842 ff.
+     _Adam Smith_ approximated to this view when he ascribed a
+     more favorable balance to the country which paid for its
+     imports with its own instead of with foreign products. (W.
+     of N., IV, ch. 3-2, p. 329, Bas.)]
+
+     [Footnote A2-5-11: Compare � 141. Strongly emphasized by
+     _List_, Werke II, 31, 36 seq. 48, 137.]
+
+     [Footnote A2-5-12: _Torrens_ imagines an English
+     manufacturer who employs raw material = 100 quarters of corn
+     and manufactured wares = 100 bales of cloth (the quarter of
+     corn and the bale of cloth supposed to be of equal value)
+     and whose product = 240 bales in value; and compares him
+     with an American agriculturist who, by means of the same
+     outlay of capital, harvests 240 quarters of corn. The trade
+     between them restores to each not only his outlay, with
+     twenty per cent. profit, but puts them in a position to
+     repeat their production on a larger scale. Only the quantity
+     of fertile land can put a limit to this growth; for corn and
+     cloth help produce each other, and the cheapness of the one
+     promotes the cheapness of the other, which can not, by any
+     means, be said, for instance, of the exchange between
+     vanilla and satin. (Budget, p. 268 ff.) Compare _Roscher_,
+     Colonien, p. 277 ff.]
+
+     [Footnote A2-5-13: The important controversy concerning
+     absenteeism may be answered in accordance with the
+     principles laid down in this chapter. The mercantile system
+     considered the rent sent to absentee landlords or
+     capitalists as a tribute paid to foreign countries; but
+     certainly improperly, as such rent is only the fruit of
+     their property which the owners might have consumed in their
+     own country, without giving any one a particle of it.
+     Besides, these rents are not sent in cash to foreign
+     countries, but in the form of those commodities to the
+     exportation of which the country is peculiarly well adapted.
+     Let us suppose, for instance, that the Irish absentees had
+     all left the country at once. The tradesmen, personal
+     servants, etc., to whom they had hitherto furnished
+     employment would be greatly embarrassed to find a market for
+     their services, etc., but the producers of linen and meat
+     would have largely increased their exports, because an
+     entirely new demand for their products would have arisen
+     through the farmers of the absentees. The reverse would
+     necessarily happen if all absentees were suddenly called
+     home. Absenteeism which has lasted a long time injures no
+     one economically. Many, recently, laud it even, because it
+     permits every nation to devote their energies to the
+     branches of production for which they are best qualified:
+     Paris, for instance, to theatrical and luxury wares. The
+     savings made by the English absentees on the continent,
+     where things are cheaper, turn eventually to the advantage
+     of England. (Thus, even _Petty_: Political Anatomy of
+     Ireland, p. 81 ff. _Foster_, On the Principle of Commercial
+     Exchanges between Great Britain and Ireland, 1804, p. 76 ff.
+     Edinb. Rev., 1827. _F. B. Hermann_, Staatswirthschaftl.
+     Untersuchungen, 355, 363 ff. _Per contra_, especially,
+     Discourse of Trade and Coyn, 1697, p. 99. _M. Prior_, List
+     of the Absenters of Ireland, 1730. _A. Young_; Tour in
+     Ireland, 1780. _Sir J. Sinclair_, Hist. of the Public
+     Revenue, 1804, III, 192 seq. _Lady Morgan_, On Absenteeism,
+     1825.) An aversion for absenteeism plays a chief part in all
+     Carey's writings. Thus, even in his Rate of Wages, 45 ff.
+
+     On medieval complaints concerning the absenteeism of
+     monasteries: _Bodmann_, Rheingauische Alterth�mer, 751. From
+     a higher point of view, it cannot, indeed, be ignored that
+     absenteeism, largely developed, cripples the organic whole
+     of national life. The most highly cultured and influential
+     classes become estranged from their country, the great mass
+     remaining behind coarser, economic production more
+     one-sided, and all social contrasts more sharply defined.
+     Disturbances in Rome, when Diocletian removed his residence
+     from there; the decline of the Netherlands, very much
+     promoted by the discontent which Philip II.'s departure for
+     Spain produced. It was estimated, however, in 1697, that the
+     English absentees caused a gain to France of �200,000 per
+     annum. (Discourse of Trade, p. 93.) It is said that about
+     1833, 80,000 Englishmen traveled on the continent, and
+     consumed �12,000,000 there. (_Rau._) According to
+     _Br�ckner_, the Russians who travel in foreign countries
+     take 20,000,000 rubles a year out of the country with them.
+     (_Hildebrand's_ Jahrb., 1863, 59.) That the countries which
+     receive these travelers receive no very great benefit from
+     them, see in _J. B. Say_, Cours pratique. In Paris, there
+     were, even in 1797, so many strangers who so enhanced the
+     rents paid for _maisons garnies_ that their expulsion was
+     proposed. (_A. Schmidt_, Pariser Zust�nde, III, 78.)]
+
+
+SECTION VI.
+
+INTERNATIONAL COMMERCIAL TREATIES.
+
+All international commercial treaties have this object in common: to
+moderate the impediments to trade which arise from the differences and
+even from the enmities of states. According to time and character, they
+fall into three groups:
+
+A. _Medieval_, where a barbarous state for the first time promises
+foreign merchants in general legal security, without which regular trade
+is unthinkable. Such treaties, where their provisions are not a matter
+of course, must be certainly considered as a salutary advance; and they
+may, under certain circumstances, be necessary even to-day.[A2-6-1]
+
+B. _Mercantilistic_ treaties, which close, perhaps, even a bloody
+commercial war carried on against a rival,[A2-6-2] or which by a closer
+connection with a state, whose rivalry is not so much feared, are
+intended to moderate the worst consequences of a general
+seclusion.[A2-6-3] Consistently carried out, and without any regard for
+consequences, the mercantile system really means a war of each state
+against all others, and it is no mere accident that after the cessation
+of the wars of religion (1648) and before the beginning of the war of
+the French revolution (1792), commercial wars occupy the foreground.
+Such economic alliances as are entered into in these treaties generally
+unite states which, by reason of the very different nature of their land
+and their different national culture, are adapted to production of very
+different kinds, and which, at the same time, have a common political
+interest.[A2-6-4] Each party here agrees with the other to give a
+preference to its subjects in trade, to not exceed certain maxima of
+duties, etc.[A2-6-5]
+
+The art of the negotiator was employed to overreach the other
+contractant in relation to the balance of trade.[A2-6-6] It was
+considered a special matter of congratulation to induce a less highly
+developed nation to abandon the traditional means employed to
+artificially elevate its industries. Hence it is, that such friendly
+treaties frequently contained the germs of the bitterest enmity.[A2-6-7]
+A popular remnant of this second group has been noticeable even in
+recent times, when in diplomatic negotiations concerning the reciprocal
+modification of duties, it was considered an overreaching and even as an
+outrage, in case one state made more "concessions" than it
+received:[A2-6-8] evidently, a confusion of the producers of the
+industry in question with the whole nation.
+
+C. _Free-trade_ treaties, intended to pave the way to the general
+freedom of trade.[A2-6-9] Two provisions especially are characteristic
+here: putting the subjects of the other party on an equal footing with
+those of the home country in what relates to the ship-duties,
+etc.;[A2-6-10] and the promise that the products of the other party, as
+regards import duties, shall be treated like those of the most favored
+nation.[A2-6-11] [A2-6-12] Whether this preparation for the universal
+freedom of trade is better made through the medium of an international
+treaty or of national legislation cannot be answered generally.[A2-6-13]
+Besides, in our day, the preference of one foreign nation would be
+easily evaded through the perfection of the modern means of
+communication.
+
+     [Footnote A2-6-1: The treaty of commerce between England and
+     Morocco, of the 9th of December, 1856, specially covenants
+     that the countrymen of a debtor shall not be held
+     responsible for debts in the creation of which they had no
+     part; that between England and Mexico, in 1826, guaranties,
+     among other things, that prices shall be freely determined
+     between buyers and sellers (art. 8), freedom from compulsory
+     loans, and from forced conscription for military duty (10),
+     the exercise of one's religion, and the inviolability of
+     graves (13); things which were not yet matters of course in
+     Mexico! Similar agreements between Spain and England in
+     1667; between Spain and Holland in 1648 and 1713; and even
+     in 1786, between England and France. Commercial treaties of
+     this kind are found very early and very frequently among the
+     ancients. Compare the Arcadian-�gean in _Pausan_, VIII, 5,
+     5, which strongly recalls the Russo-English trade over
+     Archangel; further, Corp. Inscr. Gr., II, No. 1793, 2053 b
+     and c, 2056, 2447 b, 2675-78, 3523. That in the suburbs of
+     Jerusalem, from Solomon to Josias, places where Astarte etc.
+     was worshipped, were maintained unhindered, depends, it is
+     said, on commercial treaties with the Phoenicians,
+     Moabites, Ammonites. (_Movers_, Ph�nikier, III, 1, 121 ff.,
+     206 seq.)]
+
+     [Footnote A2-6-2: The two commercial treaties between Rome
+     and Carthage, 348 and 306 before Christ (_Polyb._, III, 22
+     ff.), are a clear proof that, in the interval, the
+     mercantile superiority of Carthage had increased. While the
+     Romans in 348 had still the right, under certain
+     limitations, to carry on trade in Sardinia and Africa, it
+     was in 306 entirely denied them.]
+
+     [Footnote A2-6-3: As guild-privileges make annual fairs
+     (_Jahrm�rkte_) and governmental fixed prices necessary.]
+
+     [Footnote A2-6-4: Commercial treaty of the Venetians with
+     the Latin empire in Constantinople, of the Genoese with the
+     Greek after its restoration; in which, for instance, it was
+     promised to the former, that no citizen of a state at war
+     with Venice, should be permitted to sojourn in the Byzantine
+     empire; to the latter, that they alone of all foreigners
+     should enjoy freedom from taxation, and, with the Pisans,
+     navigate the Black Sea. As long as the Dutch were the
+     hereditary foes of Spain, they were much favored in France.
+     Commercial treaty of 1596, putting them on an equal footing
+     with the French; and which, considering their superiority at
+     the time, was necessarily of greater advantage to them than
+     to the French. _Colbert's_ step to destroy this
+     preponderance is coincident with the changed foreign policy.
+     (Richesse de Hollande, I, 127.) In the peace of Nijmegen,
+     again (art. 6 seq.), France tried to separate the Dutch from
+     their allies by the restoration of their former rights. In
+     the Spanish war of succession, France entered into a treaty
+     with the arch-duke, Charles, that a common commission should
+     fix the duties on English commodities, transfer the trade
+     with America to an English-Spanish company, but that the
+     French should be excluded therefrom. (_Ranke_, Franz.
+     Gesch., IV, 257.)]
+
+     [Footnote A2-6-5: The king of Bosporos had the rights of
+     citizenship in Athens, and enjoyed that of freedom from
+     taxation of his property there. In consideration of this,
+     the Athenians were released from his corn export duties of
+     1/30. (_Isocr._, Trapez., � 71. _Demosth._, Lept., p. 476
+     ff.) Commercial treaty of Justinian with Ethiopia: the
+     latter was to afford aid against the Persians, in return for
+     which Byzantium promised to supply its requirement of silk
+     no longer from Persia, but from Ethiopia. Commercial treaty
+     between Florence and England, 1490: England promised to
+     permit all the wool destined for Italy, except a small
+     quantity intended for Venice only, to go over Pisa, and as a
+     rule, not through foreigners. Florence, on the other hand,
+     was to receive English wool only through English ships.
+     (_Rymer_, Foedera, XII, 390 seq. Decima dei Fiorentini, II,
+     288 ff.)]
+
+     [Footnote A2-6-6: The difficulties of such negotiations
+     described by an experienced politician (probably _Eden_):
+     Historical and Political Remarks on the Tariff of the French
+     Treaty, 1787.]
+
+     [Footnote A2-6-7: The Methuen treaty (1703) was considered
+     an English master-piece, because Portugal had actually
+     exported a great deal of Brazilian gold to England. _Pombal_
+     said, in 1759: "Through unexampled stupidity, we permit
+     ourselves to be clothed, etc. England robs us every year, by
+     its industry, of the products of our mines.... A severe
+     prohibition of the exportation of gold from Portugal might
+     overthrow England." (_Sch�fer_, Portug. Gesch., V, 494 ff.)
+     And yet the treaty only says that Portugal withdraws its
+     prohibition of English woolen wares, and restores the former
+     duties (15 per cent.), while England continues to permit
+     Portuguese wine to pay a duty 1/3 less than French wines!
+     Singular doctrine of _Adam Smith_ (W. of N., IV, ch. 6), and
+     still more of _McCulloch_ (Comm. Dict., v. Commercial
+     Treaties), that this commercial treaty was unfavorable to
+     England and very favorable to Portugal, although, in fact,
+     later a duty of only about 3 per cent. was imposed here on
+     English commodities. (_B�sch_, Werke, II, 62.) The
+     English-French commercial treaty of 1786 introduces in the
+     place of the former prohibition, duties of 10, 12 and 15 per
+     cent. for a number of industrial products. The French soon
+     came to believe that they had been taken advantage of here.
+     _A. Young_ found the desire very general in the north of
+     France, to get rid of the Eden treaty even through a war.
+     (Travels in France, I, 73.) Many of the _cahiers_ of the
+     third estate demand that no treaty of commerce should be
+     entered into without previous consultation with the
+     industries interested. (Acad. des Sc. morales et polit.,
+     1865, III, 214.) But in England, also, bitter complaints of
+     the opposition, to which Pitt replied, that commercial
+     treaties between agricultural and industrial countries
+     result to the advantage of the latter, independent of the
+     fact that England obtained a new market of 24,000,000, and
+     France of only 8,000,000 persons. Compare the extracts in
+     _Lauderdale_, Inquiry, App., 14. Forcade: Revue des deux
+     Mondes, 1843.]
+
+     [Footnote A2-6-8: Urged very largely in southern Germany
+     against the Prussian-French commercial treaty of 1862. But
+     is it really an "advantage" for France to have in the
+     interior more toiling (_Plackereien_) for inlanders as well
+     as for foreigners? Or that its consumers must pay high taxes
+     to the producers of certain wares?]
+
+     [Footnote A2-6-9: Seldom in antiquity. Compare, however,
+     Inscr. Gr., II, No. 256, and the reciprocal granting of the
+     rights of citizenship of Athens and Rhodes. (_Livy_, XXXI,
+     15.) Among the moderns, Flanders followed free-trade
+     principles similar to those followed later by Holland, at
+     the beginning of the fourteenth century; for instance, it
+     refused to gratify France by breaking off its trade with
+     Scotland. (_Rymer_, Foedera, II, 388.) Florence, in 1490,
+     promised the English, that in all treaties to be entered
+     into with others, it would permit it to enter. In the
+     French-Florentine commercial treaty of 1494, it is
+     stipulated with the Florentines that their ships _Gallica
+     esse intelligantur_ and their merchants _tanquam veri et
+     naturales Galli_ etc. (Decima, II, 308.) Swedish treaty with
+     Stralsund, 1574, that every privilege granted to a Baltic
+     city should also be, of itself, to the advantage of
+     Stralsund. Mutual equal treatment of subjects promised
+     between Portugal and England, 1642; Portugal and Holland,
+     1661; mutual treatment on the basis of the most favored
+     nation: between England and Portugal, 1642; Holland and
+     Spain, in the peace of Utrecht; Spain and Portugal, 1713;
+     Spain and Tuscany, 1731; England and Russia, 1734. But how
+     far such principles were removed from the beginning of the
+     eighteenth century is shown by the speech from the throne of
+     the 28th of January, 1727, of George I., in which the
+     Austro-Spanish treaty of 1725, that placed the subjects of
+     Austria in the colonial empire of Spain on an equal footing
+     with the English and Dutch, is described as a violation of
+     the dearest interests of England, and in which it is said
+     that England must defend its own unquestionable right
+     against the covenant entered into to violate public faith
+     and the most solemn treaties; that it might be that Spain
+     thought of subjecting England once more to the popish
+     pretender. Even in 1713, it was one of the principal points
+     in controversy between the Tories and Whigs, whether, in a
+     commercial treaty with France, the latter should be accorded
+     the rights of the most favored nations. Compare _Daniel
+     Defoe_, A Plan of the English Commerce, and _per contra_,
+     The British Merchant.]
+
+     [Footnote A2-6-10: English treaties with Prussia, 1824; the
+     Hanse cities, 1825; with Sweden, 1826; France, 1826 (England
+     removed the limitations still retained without compensation,
+     in 1839); Naples, 1845; Sardinia, Holland and Belgium, 1851.
+     Prussian treaties with Russia, 1825; Naples, 1847; Holland,
+     1851. French with Bolivia, 1834; Holland, 1846 (in which
+     reciprocity is extended even to the navigation of rivers);
+     Denmark, 1842; Venezuela, Equador and Sardinia, 1843; Russia
+     and Chili, 1846; Belgium, 1849; and Portugal, 1853.]
+
+     [Footnote A2-6-11: Marking an epoch in this respect are the
+     treaties of the United States with Holland (Oct. 8, 1782),
+     Sweden (April 3, 1783), Frederick the Great (Sept. 10,
+     1785), and England (Oct. 28, 1795); recently that entered
+     into by Napoleon III. with England in 1860, and with the
+     Zollverein in 1862.]
+
+     [Footnote A2-6-12: The expression "most favored" is not
+     always strictly construed. Thus, for instance, France
+     granted the right of coast-sailing proper (_cabotage_) only
+     to Spain. States frequently promise only: _s'appliquer
+     r�ciproquement toute faveur en mati�re de commerce et de
+     navigation qu'ils accorderaient � un autre �tat gratuitement
+     ou avec compensation_.]
+
+     [Footnote A2-6-13: Napoleon III. had a preference for
+     commercial treaties, because these, as acts of foreign
+     politics, lay in the plenitude of his imperial power (art. 6
+     of the constitution of 1852; senatus consultum of Dec. 23,
+     1852), while in legislation, his free trade tendencies were
+     limited by popular representation. And so also Prussia, by
+     its commercial treaty with him (1862), was actually freed
+     from the hindrances which the free veto of the
+     Zollverein-conferences would have opposed to its reform.
+     Opposition to the treaty-form because too binding.
+     (_Chaptal_, De l'Industrie Fran�aise, II, 242 ff.) The
+     free-trade party lauds it precisely on this account. See the
+     report of the Leipzig Chamber of Commerce for 1874-75, p.
+     41.]
+
+
+
+
+APPENDIX III.
+
+THE INDUSTRIAL PROTECTIVE SYSTEM AND INTERNATIONAL FREE TRADE.
+
+
+
+
+THE INDUSTRIAL PROTECTIVE SYSTEM AND INTERNATIONAL FREE TRADE.
+
+
+SECTION I.
+
+PROXIMATE ECONOMIC EFFECTS OF THE INDUSTRIAL PROTECTIVE SYSTEM.
+
+That the principal measures which the mercantile system recommended,
+artificially to increase a nation's wealth, could not produce the
+immediate effects expected of them, has been shown, especially from the
+natural history of money. Their proximate economic consequences
+necessarily consisted in this, that they diverted the existing
+productive forces of the nation from their places of application
+(_Verwendungspl�tzen_) hitherto, to others which the government thought
+more advantageous.
+
+A. If home producers are in a condition to offer their commodities as
+good and as cheap as foreigners, all protection of the former by import
+duties, or even by prohibitions, is superfluous. The home producer has,
+as a rule, not only the advantage of the smaller cost of freight to the
+place of consumption,[A3-1-1] but that of being earlier informed,
+because of his proximity to consumers, of a change in their
+tastes.[A3-1-2] If, indeed, foreigners could supply us better and
+cheaper, and if they are kept from supplying our market only by
+artificial means, the state compels our consumers to a sacrifice of
+enjoyment;[A3-1-3] and such a sacrifice as is not fully compensated for
+by the profit made by the favored producers in any manner. The latter
+are generally soon compelled by home competition to arrange their prices
+in accordance with the rate of profit usual in the country. If they had
+no "protection" they would simply employ their productive forces in
+other branches of production; and in those in which they were equal or
+even superior to foreign competitors. By means of the products thus
+obtained, the people might then get in exchange all those commodities
+from foreign countries, the production of which it is, according to the
+laws of the division of labor, better to leave to foreign
+countries.[A3-1-4] Since one nation can lastingly pay another nation
+only with its own products, any limitation of imports must, under
+otherwise equal circumstances, be attended by a corresponding limitation
+of exports.[A3-1-5] Directly, therefore, these hindrances to importation
+produce no increase, but only a change in the direction (_Umlenkung_) of
+the national forces of capital and labor; an increase, only in case that
+foreign producers are thereby caused to transfer their productive forces
+within our limits;[A3-1-6] which may certainly be considered the
+greatest triumph of the protective system. Hence it is absurd when an
+equal extension of "protection" to all the branches of a nation's
+economy is demanded, as it is so frequently, in the name of justice.
+There is here no real protection whatever, analogous, for instance, to
+the protection afforded by the judge, but a favor which can be accorded
+to no one without injuring some one else.[A3-1-7]
+
+     [Footnote A3-1-1: It is of course different in the working
+     (_Verarbeitung_) of foreign raw material. Much also depends
+     on the situation of the industrial provinces. For instance,
+     manufactured articles can reach the interior of Spain and
+     the Western states of the American Union only after they
+     have passed the industrial coast-regions of both countries.
+     In Russia, on the other hand, the center is the principal
+     industrial region; and hence the coast may be actually
+     nearer to foreign than to home manufacturers. Similarly, in
+     France, at least for iron and coal. Compare _Adam Smith_, W.
+     of N., II, p. 279 Bas.]
+
+     [Footnote A3-1-2: People would, however, have to calculate
+     on the foolish luxury which despises the home product
+     because "it came from no great distance." World-supremacy of
+     Paris fashions! A manufacturer of excellent German
+     _Schaumwein_ (foaming wine) complained to me, in 1861, that,
+     after suffering heavy losses, he was compelled by his
+     customers to adopt French labels. Here, a wise prince may
+     have a favorable influence by his example. Louis XIV.
+     himself insisted, when his mother died, that the court
+     should use only French articles of mourning. _Gee_, Trade
+     and Navigation, p. 46. Augustus I., of Saxony, always wore
+     home cloth. (_Weisse_, Museum f�r S�chsische Geschichte, II,
+     2, 109.) Similar requirements by the prince of Orange (1749)
+     of all officials: Richesse de Hollande, II, 317. Dutch
+     executioners were dressed in calico. (Discourse of Trade,
+     Coyn, etc., 1697.) American popular stipulations not to wear
+     foreign articles of luxury. (_Ebeling_, Geschichte und
+     Erdbeschreibung, II, 481.) Rhode Island tailors placed the
+     working wages for home stuffs much lower than for foreign.
+     (II, 149.)]
+
+     [Footnote A3-1-3: _Prince Smith_ calls protective duties
+     scarcity-duties (_Theuerungsz�lle_). Because of this
+     increased dearness of the "protected" commodities, consumers
+     can no longer pay for as many other home commodities. If the
+     industry was previously in existence, the protective duty
+     imposed is wont to enhance the price, not only of the
+     foreign commodity, but also of the home commodity.]
+
+     [Footnote A3-1-4: If, for instance, the English had never
+     had a protective tariff on silk, nor the French a protective
+     tariff on iron, the former would probably get all the silk
+     commodities they want from France and pay for them in iron
+     ware. In this way, both nations would be well off in what
+     concerns the relation between the cost of production and the
+     satisfaction of wants. _Say_ calls protective duties a fight
+     against nature, in which we take pains to refuse a part of
+     the gifts which nature offers us. He leaves himself open to
+     the charge of exaggeration, however, when he compares a
+     nation that wants to produce everything itself to a
+     shoemaker who wanted to be tailor, carpenter, to build
+     houses and cultivate a farm also. Although no nation is
+     all-sided, yet every nation is a great deal more-sided than
+     an individual.]
+
+     [Footnote A3-1-5: Whoever keeps a people from purchasing in
+     the cheapest market, thereby prevents their selling in the
+     dearest. (_McCulloch._) It was no mere desire of revenge
+     that induced Holland, in the 17th century, to threaten the
+     Poles, in case the enhancement of their duties continued in
+     Danzig and Pillau, they would supply their corn-want from
+     Russia, (_Boxhorn_, Varii Tractat. polit., p. 240.) Thus the
+     tariff-measures adopted by France against the German cattle
+     trade and the Swedish iron trade promoted the growth of the
+     Crefeld silk manufacture, and lessened the exportation of
+     French wine to Sweden. When, in 1809, England heavily taxed
+     Norwegian wood, in favor of Canada, the Norwegians began,
+     instead of purchasing English manufactured articles, to
+     supply themselves from Hamburg, Altona and France. (_Blom_,
+     Norwegen, I, 257.)]
+
+     [Footnote A3-1-6: _Fr. List_ assumed altogether too
+     unconditionally such an effect from import duties to be the
+     rule. The more developed the self-confidence of a nation is,
+     the more vigorous the life of its industries, the more
+     many-sided the commerce of its people; the less disposed are
+     its industrial classes to give up their home and carry their
+     market with them. But, for instance, Swiss labor and, still
+     more, Swiss capital have been induced by the tariff-systems
+     of the great neighboring countries to settle in M�hlhausen,
+     Baden and Voralberg, or at least to establish branch houses
+     in these places. Similarly, Neumark cloth makers were
+     induced to emigrate to Russia, and N�rnberg industrial
+     workmen to Austria (_Roth_, Geschichte des N�rnbergen
+     Handels, II, 170) etc. Compare _Burkhardt_, c. Basel, I, 74;
+     _B�hmert_, Arbeiterverh�ltnisse der Schweiz, I, 16 seq.; II,
+     17.]
+
+     [Footnote A3-1-7: Compare _Alby_ in the Revue des deux
+     Mondes, Oct., 1869, and, _per contra_, Cairnes, Principles,
+     p. 458. The misfortunes of war or internal disquiet have
+     frequently driven away the best labor-forces of an old
+     industrial state, and thus powerfully promoted a young
+     protective system in the neighborhood. Reception of
+     Byzantine silk-weavers in Venice, during the crusade to
+     Constantinople, of Flemish wool-weavers in England, under
+     Edward III. (_Rymer_, Foedera, III, 1, 23) and Elizabeth; of
+     Huguenot industrial workmen under the great elector, etc.
+     The growth of the Zurich silk industry by the settlement
+     there of expelled Protestants from Locarno.
+
+     England, indeed, had, up to 1849, protective duties both for
+     industry and agriculture. But the protective duties were of
+     no real importance, except in the case of the latter,
+     because the greater part of England's industrial products
+     were superior to foreign competition without the help of
+     protective duties. Something similar is true of most duties
+     on raw material in the United States.]
+
+
+SECTION II.
+
+EFFECT OF EXPORT DUTIES, etc., ON RAW MATERIAL.--EXPORT PREMIUMS.
+
+B. Export duties on raw material, and prohibitions of the exportation of
+raw material, lower the price of such articles, by preventing the
+competition of foreign buyers.[A3-2-1] To this loss of the producers of
+raw material, there is, in the long run, no corresponding gain to the
+manufacturers. Rather will there be, when freedom of competition
+prevails at home, an increased flow of the forces of production to the
+favored branch, because of its rate of profit, which is greater than
+that usual in the country, and a corresponding flow from the injured
+branch, until such time as the level of profit usual in the country is
+restored.[A3-2-2] Hence here, also, the final result is only a change of
+the direction, not a direct increase of the productive forces.[A3-2-3]
+
+C. In the case of export-premiums, it is necessary to distinguish
+between the mere refunding back of the taxes which have been paid on the
+assumption of a home consumption which has not taken place (drawbacks),
+and the actual making of donations because of the exportation of goods
+(bounties). The former produces no result except to maintain the
+possibility of a production which would otherwise have been prevented by
+the tax. The latter, on the contrary, compels all those who are subject
+to taxation to make a donation to one particular class of persons
+engaged in industry.[A3-2-4] Moreover, all consumers are compelled to
+pay a higher price for the commodity to the extent that the market
+price, inclusive of the premium to be obtained abroad, is higher than
+the home market price hitherto usual. But, as the cost of production has
+not increased, this profit of the producers, which is greater than that
+usual in the country, must induce other productive forces to enter into
+the favored branch; so that here, also, the lasting result is not a
+higher rate of profit of the individuals engaged in the industry, but an
+extension of the industry itself. Foreign countries chiefly reap the
+greatest advantage from this course, since they obtain the commodities
+at gift-prices.[A3-2-5] The premiums paid, not for exportation, but for
+the production of a commodity, have a meaning akin to this.[A3-2-6]
+Either the industry could not maintain itself without premiums, in which
+case the state encourages a losing production,--and the more there is
+produced the greater is the loss to the national economy;--or the
+industry might exist without the payment of premiums, and then the newly
+increased profit would lead to an extension of the industry. Exportation
+would follow, and all the effects of export-premiums appear.[A3-2-7]
+
+     [Footnote A3-2-1: Rags in Silesia dearer than in Bohemia by
+     the full amount of the Austrian export duties (Gutachten
+     �ber die Erneuerung der Handelsvertr�ge; 1876, p. 9). When
+     the English export-prohibitions were extended to Scotland,
+     the price of Scotch wool fell about 50 per cent. (_A.
+     Smith_, W. of N., IV, ch. 8.) In the case of foreign raw
+     material, the re�xportation of which is prevented, the
+     object of such prohibitions may be largely frustrated. When
+     England, to promote its dyeing industries, left the
+     importation of colors entirely free, but allowed their
+     exportation only under heavy duties (8 George I., c. 15),
+     the importers provided the market always with somewhat less
+     than the amount required, and thus raised the price.]
+
+     [Footnote A3-2-2: Export hindrances have been continued
+     longest in favor of manufacturing industries
+     (_Verarbeitungsindustrie_), in the case of such commodities
+     as are not intentionally produced, such as rags, ashes,
+     etc., but which are collected only as the remains of some
+     other kind of production or consumption. "Negative
+     production," according to _Stilling_, Grunds�tze der
+     Staatswirthschaft, 803, because it is desirable to produce
+     as little as possible of such raw material. But the dearer
+     rags, for instance, are, the more carefully are they
+     collected.]
+
+     [Footnote A3-2-3: When the French prohibition of the
+     exportation of hemp was extended to Alsace, its production
+     decreased from 60,000 to 40,000 cwt. (_Schwerz_,
+     Landwirthschaft des Nieder-Elsasses, 378 ff.) Frederick the
+     Great soon carried his prohibition of the exportation of raw
+     wool to such an extent as to prohibit the exportation even
+     of unshorn sheep, and to punish the dropping of a sheepfold
+     by a fine of 1,000 ducats. (Preuss. Gesch. Friedrichs III.,
+     42.) Here, also, belong prohibitions relating to the
+     exportation of corn, which force considerable capital, etc.
+     into industry. The prohibition of the exportation of corn in
+     England, and the permitting of the exportation of cattle,
+     wool, etc., was one of the principal causes why there were
+     so many complaints at the time of the turning of land used
+     for tillage into pasturage-land. When, in 1666, the
+     exportation of Irish cattle to England was prohibited, it
+     produced, at the outset, great need in Ireland, but
+     afterwards a flourishing condition of Irish industry.
+     (_Hume_, History of England, ch. 64.)]
+
+     [Footnote A3-2-4: The effect must be very much the same when
+     the right of buying up all the raw material of a certain
+     district is granted to one factory exclusively. The elector,
+     Augustus of Saxony, did this frequently. Compare _Falke_,
+     Gesch. des Kurf., A. v. S., 190-212, 345.]
+
+     [Footnote A3-2-5: As to how, by means of German drawbacks
+     (_R�ckz�lle_) it is possible for beet-sugar to be offered at
+     a cheaper rate in Brazil than home cane-sugar, see
+     _Wapp�us_, Brazilien, 1830. The French export-premiums for
+     sugar amounted, in 1856, to over 8,000,000 francs. Frenchmen
+     subject to taxation were obliged to pay this amount, and
+     thus add to the already increasing price which they had to
+     pay for that article. (Journ. des Econom., Juill., 1857.) In
+     England, in 1742, the export-premiums for linen were
+     defrayed by enhanced entry-duties on cambrics. (15 and 16
+     George II., c. 29.)]
+
+     [Footnote A3-2-6: As to how English export-premiums
+     sometimes made English commodities cheaper in Germany than
+     in England, see _B�sch_, Werke, XIII, 82. There are, indeed,
+     gifts which may ruin the receiver of them, as, for instance,
+     when one gets his rival intoxicated at his expense before
+     the decisive solicitation. _Timeo Danaos et dona ferentes_
+     (cited by Fox and Burke against the Eden treaty: _Hansard_,
+     Parl. History, 1787, Jan. p. 402, 488).]
+
+     [Footnote A3-2-7: It is said that Maria Theresa paid
+     1,500,000 florins a year for this purpose. (_Sonnenfels_,
+     Grunds�tze, II, p. 179.) England, between 1806 and 1813,
+     altogether, �6,512,170. _Colquhoun_, Wohlstand, Macht, etc.,
+     Tieck's translation, I, 251.]
+
+
+SECTION III.
+
+THE FREE-TRADE SCHOOL.
+
+From what has been said, we may understand why the so-called free-trade
+school, with its atomistic over-valuation of the individual and the
+moment, rejects all those measures of the industrial protective
+system.[A3-3-1] As such measures really injure the oppressed portions of
+the people more than they help the favored classes, their introduction,
+it is said, uniformly depends on this, that single classes of producers
+understand their private interests better than others, and are better
+organized than other producers and especially better than consumers, to
+take care of their interests.[A3-3-2] Adam Smith approves import
+hindrances for the purpose of artificially promoting an industry only in
+two cases:
+
+A. When military safety demands it. Hence he calls the English
+navigation act, that great prohibitive and protective law intended to
+advance the merchant marine, the wisest perhaps of all English
+commercial regulations, although he clearly saw that it compelled
+England to sell her own commodities cheaper and buy foreign commodities
+dearer.[A3-3-3]
+
+B. When the import duty is no more than sufficient to balance the tax
+imposed on the corresponding home product. Smith rightly remarks that a
+universally heavier taxation by the home country, but which affected all
+branches of its production equally, operated like diminished natural
+fertility, and hence does not make any equalizing tax for foreign trade
+necessary.
+
+The person who has only a modest opinion of the power of his own reason,
+and therefore a just one of the reason of other men and other times,
+will not believe that a system like the industrial protective system
+which the greatest theorizers and practitioners favored for centuries,
+and which governed all highly developed countries in certain periods of
+their national life, proceeded entirely from error and deception. It
+really served, in its own time, a great and regularly occurring want;
+and the error consisted only in this, that, partly through improper
+generalization by doctrinarians and partly by the avarice of the
+privileged classes and the inertia of statesmen, the conditioned and
+transitory was looked upon as something absolute.[A3-3-4]
+
+     [Footnote A3-3-1: _P. de la Court_, in his freedom of trade,
+     has in view not the interest of consumers--and least of all
+     of the whole world--but the interest of the commercial
+     class. Compare T�b. Ztschr., 1862, p. 273. Similarly,
+     _Child_, Discourse of Trade, 1690; whereas _D. North_,
+     Discourses upon Trade (1690), may be called a free-trader in
+     the sense in which the expression is used to-day. No nation
+     has yet grown rich by state-measures; but peace, thrift and
+     freedom, and nothing else, procure wealth. (Postscr.)
+     _Davenant_ also zealously opposes the craving of a people to
+     produce everything themselves, to want only to sell, etc. He
+     considered very few laws on commerce a sign of a flourishing
+     condition of trade. (Works, I, 99, 104 ff.; V, 379 ff., 387
+     seq.) _F�n�lon's_ antipathy for import and export duties in
+     Tel�maque, a part of his general opposition to the _si�cle
+     de Louis XIV_. The view of the Physiocrates (_La police du
+     commerce interi�ur et ext�rieur la plus sure, la plus
+     exacte, la plus profitable � la nation et � l'�tat consiste
+     dans la pleine libert� de la concurrence_: _Quesnay_,
+     Maximes g�n�rales, No. 25) is directly connected with their
+     deepest fundamental notions of _produit net_ and _imp�t
+     unique_. _Turgot_ vindicates the interests of workmen
+     against protective duties, for whom no compensation is
+     possible, where one industry gains by its being favored in
+     the same way that it loses when another is favored. (Sur la
+     Marque de Fer, I, p. 376 ff., Daire.) "Those who cry so
+     loudly for protective duties are partly thoughtless persons
+     who wish to avoid the consequences of bad speculations, and
+     in part shrewd persons who would like to earn during the
+     first years a rate of profit higher than that usual in the
+     country." (_Rossi._) _Bastiat_ ridicules the advocates of a
+     protective tariff by the petition of the lamplighters, lamp
+     manufacturers, etc., that to advance their industry, and
+     indirectly almost all others, the mighty foreign competition
+     of the sun might be removed from all houses. (Sophismes
+     �con., ch. 7.) To him, the protective system is precisely
+     the system of want; freedom of trade, the system of
+     superabundance. Political economy would have fulfilled its
+     practical calling, if, by means of universal freedom of
+     trade, it had done away with all that is left of that system
+     which excludes foreign commodities because they are cheap,
+     that is, because they include _une grande proportion
+     d'utilit� gratuite_. (Harmonies, p. 174, 306.) _Cobden's_
+     pet expression: "Free trade, the international law of the
+     Almighty!" (Polit. Writings, II, 110.) _K. S. Zachari�_
+     calls the protective system a step introductory to communism
+     (Staatsw. Abh., 100), because it nearly always leads to
+     over-population and _List's_ system, a politico-economical
+     absurdity. (Vierzig B�cher vom Staate, VII, pp. 23, 92.)]
+
+     [Footnote A3-3-2: Among the many frequently wonderful
+     speeches by which persons engaged in industry are wont to
+     support their motion for protective duties, etc., the
+     following are particularly characteristic. The long struggle
+     of English manufactures against the East Indian Company,
+     since the later portion of the seventeenth century. Compare
+     _Pollexfen_, England and East India inconsistent in their
+     Manufactures (1697), against which _Davenant_, at the
+     solicitation of the company, wrote his Essay on the E. I.
+     Trade (1697). Prohibition of East Indian commodities, 11 and
+     12 Will. III., ch. 10. The struggle did not stop until the
+     middle of the eighteenth century, when India was outflanked
+     by English machines. When Pitt, in 1785, labored for the
+     abolition of the tariff-barriers against Ireland, English
+     manufacturers, and among others Robert Peel, declared that
+     they would be forced in consequence to transfer a part of
+     their manufactories to Ireland! (_McCulloch_, Literature of
+     Political Economy, p. 55.) _Say_ tells of a proposition made
+     by the hat-makers of Marseilles to prohibit foreign straw
+     hats (1. c).]
+
+     [Footnote A3-3-3: W. of N., IV, ch. 2. According to _Roger
+     Coke_, England's Improvement (1675), ship-building in
+     England became dearer in a few years by about one-third, on
+     account of the navigation act; and the wages of sailors
+     advanced to such an extent that England lost its Russian and
+     Greenland trade almost entirely, and the Dutch obtained the
+     control of it. This _J. Child_, Discourse of Trade, admits,
+     but still calls the navigation act the _magna charta
+     maritima_. Similarly, _Davenant_, Works, I, 397. Here the
+     relation of the cost to the immediate product can as little
+     decide as it can against the exercise of troops or the
+     construction of forts. _Adam Smith_ allows the same reasons
+     to apply to export premiums for sail-cloth and gunpowder
+     (IV, ch. 5). Recently, however, _B�lau_
+     (Staatswirthschaftlehre, 339; Staat und Industrie, 220
+     seq.;) has argued against all these exceptions of Adam
+     Smith.]
+
+     [Footnote A3-3-4: _Schleiermacher_ (Christ. Sitte, 476)
+     calls the polemics which can see nothing but error in a
+     refuted theory, immoral.]
+
+
+SECTION IV.
+
+FURTHER EDUCATIONAL EFFECTS OF THE INDUSTRIAL PROTECTIVE SYSTEM.
+
+The sacrifices which the protective system directly imposes on the
+national wealth consist in products, fewer of which with an equal
+straining (_Anstrengung_) of the productive forces of the country, are
+produced and enjoyed, than free trade would procure. But it is possible
+by its means to build up (_bilden_) new productive forces, to awaken
+slumbering ones from their sleep, which, in the long run, may be of much
+greater value than those sacrifices. Who would say that the cheapest
+education is always the most advantageous?[A3-4-1] Only by the
+development of industry also, does the nation's economy become
+mature.[A3-4-2] The merely agricultural state can attain neither to the
+same population nor the same energy of capital, to say nothing of the
+same skillfulness of labor, as the mixed agricultural and industrial
+state; nor can it employ its natural forces so completely to
+advantage.[A3-4-3] How many beds of coal, waterfalls, hours of
+leisure,[A3-4-4] and how much aptitude for the arts of industry, can be
+turned to scarcely any account in a merely agricultural state? If,
+therefore, the protective system could materially promote a national
+industry, or if it made such industry possible, for the first time, the
+sacrifice connected therewith, in the beginning, should be considered
+like the sacrifice of seed made by the sower;[A3-4-5] but this can be
+justified only on the three following conditions: that the seed is
+capable of germination; that the soil be fertile and properly
+cultivated, and the season favorable.[A3-4-6] [A3-4-7]
+
+     [Footnote A3-4-1: _List_, Nationales System der polit.
+     Oekonomie, kap. 12, contrasts two owners of estates, each of
+     whom has five sons, and can save 1,000 thalers a year. The
+     one brings his sons up as tillers of the ground (_Bauern_ =
+     peasants) and puts his savings out at interest. The other,
+     on the contrary, has two of his sons educated as _rational_
+     (_rationelle_) agriculturists, and the others as intelligent
+     industrial workers, and at a cost which prevents the
+     possibility of his accumulating any more capital. Which of
+     the two has cared better for the standing, wealth, etc. of
+     his posterity; the adherent of the "theory of exchangeable
+     values" or the adherent of the doctrine of "the productive
+     forces?"]
+
+     [Footnote A3-4-2: The rent of the land of Gr. Botton, in
+     Lancashire, was estimated in 1692 at �169 per annum; in
+     1841, at �93,916. (_H. Ashworth._)]
+
+     [Footnote A3-4-3: The pottery district of Staffordshire was
+     formerly considered very unfertile. It was industry that
+     first showed how the rich and varied beds of clay at the
+     surface, and the wealth of coal under them, could be fully
+     utilized.]
+
+     [Footnote A3-4-4: Blind free-traders always like to assume
+     that every man capable of working always busies himself;
+     whereas idleness frequently excuses the wasting of its time,
+     by the plea that a remunerative market of the possible new
+     products is improbable, or at least uncertain. Compare _J.
+     M�ser_, P. Ph., I, 4. _Kr�ncke_, Steuerwesen (1804), 324,
+     328 seq., and even the first German reviewers of Adam Smith
+     in _Roscher_, Gesch. der N. Oek. in Deutschland, II, 599.]
+
+     [Footnote A3-4-5: _List_ calls attention to the case of the
+     stenographic apprentice who writes more slowly for a time
+     than he was wont to formerly.]
+
+     [Footnote A3-4-6: Let us suppose that a country had hitherto
+     produced $10,000,000 worth of corn, and that of this amount
+     it had sent $1,000,000 worth into foreign countries as a
+     counter-value for foreign manufactured articles. It now, by
+     means of a protective tariff, establishes home manufactures,
+     through the instrumentality of which a coal bed or water
+     fall is turned to account. The workmen in the manufactories
+     henceforth consume what was formerly exported. Of course
+     such a change is not effected without loss; but this loss
+     ceases as soon as the home industry becomes the equal of the
+     foreign industry which was crowded out. And then the forces
+     which have been made useful in the meantime appear as clear
+     gain. _List_ not unfrequently called special attention to
+     the fact that a consumption of 70,000 persons engaged in
+     home industries means as much to German agriculture as all
+     that it exported to England from 1833 to 1836.
+     (Zollvereinsblatt, 1843, No. 5.)]
+
+     [Footnote A3-4-7: _Adam Smith's_ free-trade doctrine has
+     always been contradicted in Germany. Even in 1777, his first
+     great reviewer, _Feder_, says that many foreign commodities
+     can be dispensed with without damage; and that industries
+     which indemnify the undertakers of them only after a time
+     but which are then very useful to the community in general,
+     would not be begun always without special favor shown them.
+     (_Roscher_, Geschichte der National Oekonomie, II, p. 599.)
+     _Kr�ncke_, Steuerwesen, 324 ff., speaks of attempts towards
+     the education of industries by taxation-favors: "If of ten,
+     only one succeeds, even that is to be considered a great
+     gain." But modern protectionists base themselves chiefly on
+     their interest in the independence of the country, precisely
+     as the free-traders do on that of individual freedom. _Ad.
+     M�ller_, with his organic way of comprehending things,
+     opposes the assumption of a merely mercantile world-market,
+     in which all the merchants engaged in foreign trade
+     constitute a species of republic. (_Quesnay._) He also
+     rejects on national grounds the universal freedom of trade
+     as well as the universal empire akin to it; although as a
+     means of opposing it, he suggests not so much a protective
+     tariff as the intellectual cultivation of nationality in
+     general. (Elemente der Staatskunst, 1809, II, 290, III, 215,
+     II, 240, 258.) According to _S�rgel_ (Memorial an den
+     Kurf�rst v. Sachsen, 1801,) commercial constraint
+     (_Handelszwang_), by means of export and import duties, is
+     useful in the childhood of manufactures, afterwards
+     injurious, because the powerful incentive to perfection is
+     wanting where no competition is to be feared (67). _P.
+     Kaufmann_, the opponent of Smith's balance-theory, demands
+     moderate protection against the otherwise irresistible
+     advantages to already developed industrial nations.
+     (Untersuchungen, 1829, I, 98 ff.) The principal advocate in
+     this direction is _Fr. List_, with a great deal of sense for
+     the historical, but with little historical erudition; and
+     after the manner of an intelligent journalist, he reproaches
+     the free-trade school with baseless cosmopolitanism, deadly
+     materialism, and disorganizing individualism. He
+     distinguishes in the development of nations five different
+     stages: hunter-life, shepherd-life, agriculture, the
+     agricultural-manufacturing period, the
+     agricultural-manufacturing-commercial period; and he demands
+     that the state should lend its assistance in the transition
+     from the third to the fourth stage, in the nursing or
+     planting of manufacturing forces in connection, throughout,
+     with the enfeebling of feudalism and bureaucracy, the
+     increase of the middle class, with the power of public
+     opinion, especially of the press, the strengthening of the
+     national consciousness from within and without. Compare
+     _Roscher's_ review in the G�tt. gelehrten A. 1842, No. 118
+     ff. As to how List resembles, and differs from Ad. M�ller,
+     see _Roscher_, Gesch. der N. O., II, 975 ff.; _von Th�nen's_
+     independent defense of a protective tariff; Isolirter Staat,
+     II, 2, 81, 92 ff., 98; Leben, p. 255 seq. The socialist
+     _Marlo_ (Welt�konomie, I, ch. 9, 10) distinguishes common
+     products (_Gemeinprodukte_) which may be obtained equally
+     well in every properly developed country, and peculiar
+     products (_Sonderprodukte_), like coffee, wine, etc. With
+     respect to the former, he agrees with List; in regard to the
+     latter, with Smith. A protective tariff exerts a constraint
+     on consumers, compelling them to abridge their enjoyments
+     somewhat, and to employ these now in the procuring of
+     instruments of production, in the exercise of skill needed
+     in production and the accumulation of capital. At the same
+     time foreigners should be kept from utilizing home natural
+     forces, and where possible, home manufactures should be
+     helped to utilize foreign natural forces. _Marlo_, indeed,
+     assumes, as one-sidedly as the followers of Smith do the
+     contrary, that without the tariff the workmen in question
+     would not be employed at all; but he is right in this, that
+     the most fruitful employment of the forces of labor, and the
+     keeping of them most completely busy, mutually replace each
+     other. In France, even _Ferrier_, Du Gouvernement consid�r�
+     dans ses Rapports avec le Commerce (1808), had defended the
+     Napoleonic continental system. See _Ganilh_, the French
+     List, Theorie de l'Economie politique (1822), who grades the
+     branches of a nation's economy in a way the reverse of Adam
+     Smith, and finds the protective system necessary for the
+     less developed nations, to the end that they may not be
+     confined to the most disadvantageous employments of capital
+     (II, p. 192 ff.). Especially is a greater population made
+     possible in this way (248 ff.). Similarly, _Suzanne_,
+     Principes de l'E. polit., 1826. Further, _H. Richelot_,
+     List's translator. _M. Chevalier_, who recommends free trade
+     for France in our day so strongly, approves the system of
+     Cromwell and Colbert for their own time, and for a long time
+     afterwards (Examen du Syst�me commercial, 1851, ch. 7): a
+     view which _P�rin_ says is now shared by "all serious
+     writers." (Richesse dans les Soci�t�s Chr�tiennes, 1861, I,
+     p. 510.) _Demesnil-Marigny_, Les libres �changistes et les
+     Protectionistes concili�s (1860), bases his protective
+     system on this, chiefly, that it may greatly enhance the
+     money-value of a nation's resources to the detriment of
+     other nations, especially by the transformation of
+     agricultural labor, estimated in money, into the much more
+     productive labor of industry. The value in use of all the
+     national resources is doubtless greatest where full freedom
+     of trade obtains. In Russia, _Cancrin_ demands that every
+     nation should be to some extent independent in respect to
+     all the chief wants to the production of which it has at
+     least a middle (_mittlere_) opportunity; especially as all
+     civilization, even the higher development of agriculture,
+     must proceed from the cities. (Weltreichthum, 1821, 109 ff.
+     Oekonomie der menschlichen Gesellschaften, 1845, 10, 235 ff.)
+     America's most distinguished protectionist is _Hamilton_,
+     Report on the Subject of Manufactures presented to the House
+     of Representatives, December 5, 1791. _Jefferson's_ saying,
+     that the industry should settle by the side of agriculture,
+     leads us to _Carey_, who repeats the same idea with wearying
+     unwearisomeness; at first for the reason that the "machine
+     of exchange" should not be allowed to become too costly; but
+     afterwards rather from the Liebig endeavor to prevent the
+     exhaustion of the soil. He describes, indeed, how the East
+     Indian producer and consumer of cotton are united with one
+     another by a pontoon bridge which leads over England.
+     (Principles of Social Science, I, 378.) A good soil and good
+     harbors are the greatest misfortune for a country like
+     Carolina if free trade prevails, because it is turned into
+     an agricultural country (I, 373). The people who, after the
+     manner of the Irish, gradually export their soil, will end
+     by exporting themselves. _Carey_ would force colonies to
+     demean themselves like old countries from the first. If corn
+     be worth 25 cents in Iowa, and in Liverpool $1, for which 20
+     ells of calico are brought back, the Iowa farmer receives of
+     this quantity about 4 ells. Hence it would be no injury to
+     him were he to supply his want of cotton from a neighbor who
+     produced it at a cost four times as great as the Englishmen.
+     Analogies drawn from natural history, as, for instance, that
+     every organism, the lower it is in the scale of existence,
+     the greater is the homogeneity of its several parts; also a
+     deep aversion for centralization, and hatred of England,
+     co�perate in _Carey's_ recommendation of the protective
+     system, often called in the United States the "American
+     system," in opposition to the "British," advocated by
+     Webster against Calhoun and Clay against Jackson. _John
+     Stuart Mill_, Principles, V, ch. 10, 1, allows a protective
+     tariff temporarily, "in hopes of naturalizing a foreign
+     industry in itself perfectly suitable to the circumstances
+     of the country." Peel's colleague, G. Smythe, said, in 1847,
+     at Canterbury, that as an American (citizen of a young
+     country) or as a Frenchman (citizen of an old country with
+     its industry undeveloped), he would be a protectionist.
+     (Colton, Public Economy, p. 81.) Even _Huskisson_ admitted,
+     in 1826, that England in the seventeenth century had been
+     very much advanced by its protective system; and that he
+     would continue to vote even now for its maintenance, if
+     there were no reprisals to fear.]
+
+
+SECTION V.
+
+PROTECTION AS A POLICY.
+
+A. So long as a nation is, indeed, politically independent, but
+economically in a very low stage, it is best served by entire freedom of
+trade with the outside world; because such freedom causes the influences
+of the incentives, wants, and the means of satisfaction of a higher
+civilization to be soonest felt in the country.
+
+B. The further advance which consists in the development of home
+industries by the country itself, may, indeed, be rendered exceedingly
+difficult by the unrestricted competition of foreign industries, which
+are already developed. The carriers on of industry in an old industrial
+country have a superiority over those in the new, in the amount of
+capital, the lowness of the rate of interest, the skill of undertakers
+(_Unternehmer_) and workmen, generally, also in the consideration in
+which the whole country hold industry, and the interest they take in
+it;[A3-5-1] while in the country which has hitherto been merely
+agricultural, it happens only too frequently that industry is
+undervalued, and that young industrial talent is, as a consequence,
+forced to emigrate. How frequently it has happened that England by
+keeping down her prices for a time has strangled her foreign
+rivals.[A3-5-2] Even on the supposition of equal natural capacity, the
+struggle between the two industries would come to a close similar to
+that between a boy of buoyant spirits and an athletically developed man.
+What then is to be said of the cases in which the more highly developed
+nation is at the same time possessed of the more favorable natural
+advantages, such, for instance, as England possesses over Russia in her
+incomparable situation in relation to the trade of the world, and which
+gives her for all distant countries, without any active commerce, a
+monopoly-like advantage; farther, her magnificent harbors, streams, her
+well-situated wealth in iron and coal, etc. The advantages of mere
+priority weigh most heavily, when the great development of all means of
+transportation almost does away with the natural protection afforded by
+remoteness; and when, at the same time, a certain universality of
+fashion, which, as a rule, is governed by the most highly developed
+nations, causes national and local differences of taste, which could be
+satisfied only by national or local production, to become
+obsolete.[A3-5-3] Under such circumstances, it would be possible, that a
+whole nation might be made continually to act the part of an
+agricultural district (_plattes Land_), to one earlier developed,
+leaving to the latter, almost exclusively, the life of the city and of
+industry.[A3-5-4] A wisely conducted protective system might act as a
+preventive against this evil, the temporary sacrifices which such a
+system necessitates being justifiable where some of the factors of
+industrial production unquestionably exist but remain unused, because
+others, on account of the mere posteriority of the nation, cannot be
+built up. The abusive term "hot-house plant" should not be used where
+there is question only of transitory protection, and where there is the
+full intention to surrender the grown tree to all the wind, rain and
+sunshine of free competition, and where it is foreseen that it shall be
+so surrendered.[A3-5-5] [A3-5-6] The want of a certain economic
+many-sidedness which must be given to a nation manifests itself in a
+particularly urgent manner in times of protracted war. Here the error of
+so many free-traders, that different states should comport themselves
+towards one another as the different provinces of the same state do, is
+most clearly refuted.[A3-5-7]
+
+C. No less important is the political side of the question. Since the
+protective system forces capital and labor away from the production of
+raw material and into industry, it exerts a great influence on the
+relations of the classes or estates of a country to one another. The
+immense preponderance possessed in medieval times by the nobility,
+agriculture, the country in general as contradistinguished from the
+city, by the aristocratic and conservative elements, is curtailed in
+favor of the bourgeoisie, of industry, of the cities generally, and of
+the democratic and progressive elements. If when the history of a nation
+is at its highest point, there is supposed a certain equilibrium of the
+different elements, all of which are equally necessary to the prime of a
+nation's life, this height is now attained sooner than it would
+otherwise be. It is no mere accident that in almost every instance,
+those monarchs who humbled the medieval nobility and introduced the
+modern era, also established a protective system.[A3-5-8]
+
+D. However, such an education of industry can be attempted with proper
+success only on a large scale, that is, on a national basis. The least
+hazardous (_unbedenklich_) measure of the system, import-duties supposes
+a relatively short boundary line, such as only a great country, even
+where its formation is the most favorable imaginable, can
+possess.[A3-5-9] The greater the tariff territory (_Zollgebiet_), the
+less one-sided is its natural capacity wont to be, the sooner may an
+active competition in its interior be built up, while the foreign market
+always suffers from uncertainty. Hence all tariff-unions (_Zollverein_)
+between related states are to be recommended not only as financially but
+also as economically advantageous. Between states not related and of
+equal power, so far-reaching a reciprocity, embracing nearly the whole
+of economic policy, can scarcely be established; and it would be still
+harder for it to continue long. If the states not related are of very
+unequal power, the probable consequence would be the early absorption of
+the weaker by the stronger.[A3-5-10] [A3-5-11]
+
+     [Footnote A3-5-1: What an advantage it has been to English
+     industry and commerce that the state here so long considered
+     it a matter of honor to have its subjects well represented
+     in foreign countries, to extend their market, etc.]
+
+     [Footnote A3-5-2: _Hume_, in the parliamentary session of
+     1828, uses the expression "strangulate," to convey this
+     idea. As early as 1815, Brougham said: "It was well worth
+     while to incur a loss on the exportation of English
+     manufactures in order to stifle in the cradle the foreign
+     manufactures." The report of the House of Commons on the
+     condition of the mining district (1854) speaks of the great
+     losses, frequently in from three to four years, of �300,000
+     to �400,000, which the employers of labor voluntarily
+     underwent, in order to control foreign markets. "The large
+     capitals of this country are the great instruments of
+     warfare against the competing capital of foreign countries,
+     and are the most essential instruments now remaining by
+     which our manufacturing supremacy can be maintained."]
+
+     [Footnote A3-5-3: Before the development of the machinery
+     system, also, the preponderance of the greatest industrial
+     power could not be nearly as oppressive as later; especially
+     as in highly developed commercial countries, the wages of
+     labor are always high. (_List_, Zollvereinsblatt, 1843, No.
+     44, 1845, No. 5, ff.)]
+
+     [Footnote A3-5-4: "Shall the forester wait until the wind in
+     the course of centuries carries the seed from one place to
+     another, and the barren heath is converted into a dense
+     wood?" (_List_, Gesammelte Schriften, III, 123 seq.) When
+     the Romans had conquered an industrial country, its
+     industries began generally to flourish better, because of
+     the greater market opened to them; whereas, those which had
+     no industries before, continued, for the most part, to
+     remain producers of the raw material after the conquest,
+     also. Related to this is the phenomenon, that the provinces
+     not favored by nature, were much less backward in the middle
+     ages than they are to-day. Compare the description of the
+     misery of Mitchelstown, after the Earl of Kingston had
+     ceased to consume �40,000 there: _Inglis_, Journey through
+     Ireland, 1835, I, 142. The royal commission appointed to
+     investigate the misery of Spessart in 1852, show that the
+     home-made clothing had gone out of use there, and that the
+     wooden shoes, so well adapted to wooded countries, had been
+     changed for leather ones. This becoming acquainted with
+     foreign wants in a region not adapted to industries, without
+     a large market, greatly increased the distress. As soon as
+     such a region becomes an independent state, a productive
+     system would suggest itself.]
+
+     [Footnote A3-5-5: _List_ very well remarks that otherwise
+     most of our fruit trees, vines, domestic animals would be
+     "hot-house plants." And even men are brought up in the
+     hot-house of the nursery, the school, etc.
+     (Zollvereinsblatt, 1843, No. 36.)]
+
+     [Footnote A3-5-6: That a posterior people would never be in
+     a condition to establish industries of their own, where full
+     freedom of trade prevails, I do not by any means assert.
+     Compare the list of industries which attained to so
+     flourishing a condition without the aid of a protective
+     tariff, that they were able to supply foreign markets, in
+     _Rau_, Lehrbuch, II, � 206, a. But when Switzerland is so
+     frequently cited as an illustration in this connection (_J.
+     Bowring_, On the Commerce and Manufactures of Switzerland,
+     1836), people forget the many favorable circumstances of
+     another kind which co�perated here to elevate industry; a
+     neutrality of three hundred years, during the French
+     Huguenot War, the Thirty Years' War, the Wars of Louis XIV.,
+     and as a consequence of this, no military budgets, few taxes
+     and state debts, etc. In addition to this, at an earlier
+     period, the many mercenary troops, and afterwards the
+     foreign travelers.]
+
+     [Footnote A3-5-7: As free trade in Holland's best period was
+     more an international law than a politico-economical system,
+     so, afterwards, the Dutch protective system grew out of war
+     prohibitions; and, in times of peace, the newly established
+     industry was not abandoned. At last, in the time of its
+     decline, all industries, with a strange logic, sought
+     protection, even the most ancient one, the one whose growth
+     was the most natural, the fisheries. (_Laspeyres_, Gesch.
+     der volksw. Ansch., 134 ff., 146, 159.) The United States,
+     during the war of 1812, with England, doubled their
+     protective duties. (_A. Young_, Report on the Customs-tariff
+     Legislation of the U. S., 1874.)]
+
+     [Footnote A3-5-8: Hence, we should not judge the Russian and
+     the American systems of industrial protection, for instance,
+     by the same rule. In Russia, it may be necessary to
+     strengthen artificially the still weak bourgeoisie, and to
+     awaken numberless slumbering forces and opportunities by
+     encouragement of their use by state measures. Here, also,
+     the absolute ruler is called upon, and accustomed to educate
+     his people. In the United States, on the other hand, there
+     is no nobility; the whole nation belongs to the class of
+     burghers, and even the cultivators of the land are raisers
+     of corn, cattle traders, land speculators etc. Considering
+     the universal activity and laborious energy of the people,
+     it is to be expected that every really profitable
+     opportunity will be turned to account in such a country,
+     without any suggestion or assistance from the state. Here,
+     therefore, _A. Walker's_ saying is true: America should
+     produce no iron, not because it does not know how, because
+     it has not sufficient capital, because the nature of the
+     country is not adapted to it, or because it has no natural
+     protection, but "because we can do better." (Sc. of W., 94
+     seq.) Since a democracy cannot, properly speaking, educate
+     the people, the protective duties of the United States are,
+     for the most part, only attempts by one part of the people,
+     who claim to be the whole, to prey upon the other parts.]
+
+     [Footnote A3-5-9: If we suppose three countries, each in the
+     form of a square: A = 1 sq. m., B = 100 sq. m., C = 10,000
+     sq. m.; there is in A for every mile of boundary 1/4 sq. m.
+     of inland country; in B, 2-1/2 in C, 25.]
+
+     [Footnote A3-5-10: Towards the close of the middle ages, the
+     vigorous commercial policy of Venice, for instance, towards
+     Greece, or the Mohammedan power, was thwarted by other
+     Italian cities, Genoa, Pisa, and later, by Florence
+     especially.]
+
+     [Footnote A3-5-11: Why most of the reasons above advanced do
+     not apply to a corresponding "protection" of agriculture by
+     duties on corn, see _Roscher_, National�konomik des
+     Ackerbaues, � 159 ff.]
+
+
+SECTION VI.
+
+WHY THE PROTECTIVE SYSTEM WAS ADOPTED.
+
+This explains why so many nations in the periods of transition between
+their medieval age and their higher stages of civilization, adopted the
+industrial protective system.[A3-6-1] [A3-6-2] [A3-6-3] [A3-6-4] [A3-6-5]
+[A3-6-6]
+
+     [Footnote A3-6-1: The fact that among the ancients there was
+     so little thought bestowed on the protection of industry is
+     related to the comparative insignificance of their industry.
+     Compare _Roscher_, Ansichten der Volkswirthschaft, 3 ed.,
+     1878, vol. 1, p. 23 ff. It occasionally happened in the east
+     that workers in metal, especially the makers of metallic
+     weapons, were dragged out of the country. I _Sam._, 13, 19;
+     II _Kings_, 24, 14 ff.; _Jerem._, 24, 1, 29, 2. Among the
+     Jews, certain costly products were subjected to export
+     prohibitions for fear that the heathen might use them for
+     purposes of sacrifice. (_Mischna_, De Cultu peregr., � 6.)
+     Persian law, that the king should consume only home
+     products: _Athen._, V, p. 372; XIV, p. c. 62. The Athenians
+     went farthest in reducing such provisions to a system. Solon
+     had strictly prohibited the exportation of all raw material
+     save oil (_Plutarch_, Sol., 24), and a complaint was allowed
+     against any one who scoffed at a citizen because of the
+     industry he carried on in the market. (_Demosth._, adv.
+     Eubul., p. 1308.) The exportation of corn was always
+     prohibited; also that of the principal materials used in
+     ship-building. In war, prohibitions of the exportation of
+     weapons; importation from enemy countries also prohibited.
+     No Athenian was permitted to loan money on ships which did
+     not bring a return cargo to Athens (_Demosth._ adv. Lacrit.,
+     p. 941), nor carry wheat to any place but Athens. (_B�ckh._,
+     Staatsh. der Ath., I, 73 ff.) In Argos and �gina, the
+     importation of Athenian clay commodities and articles of
+     adornment, prohibited. (_Herodot._, V, 88; Athen., IV, 13;
+     XI, 60.)
+
+     The Athenians imposed a duty of two per cent. both on
+     imports and exports. Similarly, in Rome, where the higher
+     duties imposed on many articles of luxury served an
+     ethico-political purpose. We have, besides, accounts of
+     prohibitions of the exportation of money: _Cicero_, pro
+     Flacco, 28 (L., 2, Cod. Just., IV, 63). Plato's advice to
+     prohibit the importation of luxuries and the exportation of
+     the means of subsistence (_De Legg._) on ethico-political
+     considerations; and the Byzantine prohibition of the
+     exportation of certain articles of display from court
+     vanity. (Porph. Decaerim, p. 271 ff. Reiske.)]
+
+     [Footnote A3-6-2: In Italy's best period, the protective
+     system bears a specifically municipal complexion; in
+     democracies, a guild-complexion; the former especially
+     because of the many differential duties in favor of the
+     capital.
+
+     A very highly-developed protective system in Florence. The
+     exportation of the means of subsistence forbidden (Della
+     Decima, II, 13), and so likewise the importation of finished
+     cloths. (Stat Flor., 1415, V, p. 3; Rubr., 32, 39, 41, 43,
+     45.) In the streets devoted to the woolen industries, it was
+     not permitted to give the manufacturers notice to quit their
+     dwellings, nor to increase their rent, unless the
+     connoisseurs in the industry had admitted a higher rate of
+     profit. (Decima, II, 88.) In order to promote the silk
+     industry, the importation of silk-worms and of the mulberry
+     leaf was freed from the payment of duties in 1423, the
+     exportation of raw silk, cocoons and of the mulberry leaf
+     forbidden in 1443; and in 1440, every countryman was
+     commanded to plant mulberry trees. (Decima, II, 115.) When
+     Pisa was subdued, the Florentines reserved to themselves all
+     the wholesale trade, and prohibited there all silk and
+     woolen industries. (_Sismondi_, Gesch. der italienischen
+     Republic, XII, 171.) It was a principle followed by Milan in
+     its best period, to exempt manufacturers from taxation.
+     Yearly subsidies, accorded about 1442, to Florentine
+     silk-manufacturers, who immigrated; in 1493, a species of
+     _expropriation_, in case of houses which a neighbor needed
+     for manufacturing purposes. (_Verri_, Mem. Storiche, p. 62.)
+     Bolognese prohibition of the exportation of manuscripts,
+     because they wanted to monopolize science. (_Cibrario_, E.
+     polit. del. medio. Evo., III, 166.) Even in the seventeenth
+     century, a city like Urbino forbade the exportation of
+     cattle, wheat, wood, wool, skins, coal, as well as the
+     importation of cloth, with the exception of the very
+     costliest kinds. (Constitut. Due. Urbin., I, p. 388 ff., 422
+     ff.)]
+
+     [Footnote A3-6-3: In England, since the fourteenth century,
+     all genuinely national and popular kings always bore it in
+     mind both to secure emancipation from the Hanseates, to
+     invite foreigners skilled in industry to the country (the
+     Flemings since 1331, although the English people disliked to
+     see them come; _Rymer_, Foedd., IV, 496) and to adopt
+     protective measures, especially when they had reason to rely
+     on the bourgeoisie. (_Pauli_, Gesch. von England, V, 372.)
+     The precursors of the navigation act, 1381, 1390, 1440.
+     (_Anderson_, Origin of Commerce.) The prohibition of
+     exporting raw wool (1337, II Edw. III., c. 1 ff.) lasted
+     only one year. Wool remained a long time still so much of a
+     chief staple commodity that in 1354, for instance, �277,000
+     worth were exported; of all other commodities taken
+     together, only �16,400. (_Anderson._) On the other hand, the
+     prohibition to import foreign stuffs (1337), for instance,
+     was repeated in 1399, and the prohibition to export woolen
+     yarn and unfulled cloths in 1376, 1467, 1488. The statutes
+     of employment operated very generally. The statutes provided
+     that foreign merchants should employ the English money they
+     received only to purchase English commodities, and their
+     hosts, with whom they were obliged to live, had to become
+     security therefor. Thus, in 1390, 4 Henry IV., c. 15, and 15
+     Henry IV., c. 9; 18 Henry VI., c. 4, 1477. Prohibitions of
+     the exportation of money, 1335, 1344, 1381. Even in the case
+     of payment by the bishops to the pope, the exportation of
+     money was forbidden in 1391, 1406, 1414. Henry VIII. (3
+     Henry VIII., c. 1) threatened the exportation of money with
+     the penalty of double payment. Even in 1455, the importation
+     of all finished silk wares was prohibited for five years.
+     See a long list of similar prohibitions in _Anderson_. The
+     prohibitions relating to the exporting of raw materials, and
+     especially wool, were exceedingly strict in Elizabeth's
+     time, and stricter yet in the seventeenth century. The
+     penalty of death was attached to their violation, and
+     producers subjected to the most burthensome control.
+     Moderated especially by 8 Geo. I., c. 15. In the eighteenth
+     century we again find a series of import-premiums for raw
+     material from the English colonies. Compare _Adam Smith_,
+     IV, ch. 8.]
+
+     [Footnote A3-6-4: _Sismondi_, Histoire des Fran�ais, XIX,
+     126, considers as the beginning of the French industrial
+     protective system, the edict of 1572, by which, with a view
+     of promoting the woolen, hemp and linen manufactures, the
+     exportation of the raw material and the importation of the
+     finished commodities are prohibited. (_Isambert_, Recueil,
+     XIV, p. 241.) Yet even Philip IV., in 1302, had prohibited
+     the exportation of the precious metals, of corn, wine and
+     other means of subsistence. (Ordonn., I, 351, 372.) About
+     1332, the decision of the question whether the exportation
+     of wool also should be forbidden was made to depend on who
+     offered the most, the raw-producers or those engaged in
+     industry. (_Sismondi_, X, 67 seq.) The third estate not
+     unfrequently asked for protective measures from the
+     parliaments: thus, in 1484, a prohibition against the
+     importation of cloth and silk stuffs, and against the
+     exportation of money (_Sismondi_, XIV, 673), claims which
+     went much further in 1614, when freedom of trade, reform of
+     the guilds, etc., were desired. Opposition of Sully to the
+     industrial-political measures of Henry IV., whose
+     prohibition of foreign and gold stuffs lasted scarcely one
+     year. (_Forbonnais_, Finances de Fr., c. 44.) The edict of
+     1664, which, for the first time, created a boundary
+     tariff-system for the greater part of France, with the
+     removal of numerous export and import duties of the several
+     provinces, and the abolition even of the duty-liberties of
+     the King's court, marks an epoch. The introduction in which
+     Colbert lets the King speak of his services to the
+     taxation-system, the marine, colonies, etc., in which he
+     describes the chaos of those earlier duties, and
+     demonstrates their desirability of doing away with them, is
+     very interesting. Colbert, inconsistently enough, allowed a
+     number of export duties for industrial products to remain,
+     that he might not alienate any domanial rights.
+     (_Forbonnais_, I, 352.) The tariff, then very moderate, was,
+     in 1677, doubled in part, and even trebled, which provoked
+     retaliation, and led to the war of 1672. Hence, in 1678, the
+     tariff of 1664 was, for the most part, restored. Colbert
+     entirely prohibited these commodities, which were still
+     imported, spite of the tariff: thus, Venetian mirrors and
+     laces in 1669 and 1671. Among his characteristic measures
+     are the export-premiums for salt-meats which went to the
+     colonies in order to draw this business away from Holland to
+     France. (_Forbonnais_, I, 465.) He caused the transit
+     between Portugal and Flanders to be made through France by
+     providing that it should be carried on by means of royal
+     ships at any price. (_Forbonnais_, I, 438.) Compare
+     _Clement_, Histoire de la vie et de l'Administration de C.
+     (1846). _Jonbleau_, �tudes sur C. ou Exposition du Syst�me
+     d'�conomie Politique suivi de 1661 � 1683 (II, 1856).
+     Lettres, Instructions et M�moires de C. publi�s par Cl�ment
+     (1861 ff.).]
+
+     [Footnote A3-6-5: In Germany, the tariff projects of the
+     empire of 1522, contemplated no protection, inasmuch as
+     imports and exports were equally taxed, but the importation
+     of the most necessary means of subsistence was left free.
+     Prohibition of the exportation of the precious metals in
+     1524; of the exportation of raw wool _mit grossen Haufen_
+     (R. P. O., of 1548, art. 21; 1566, and in the R. P. O. of
+     1577, limited to the pleasure of the several districts).
+     Hence, in Brandenburg, 1572 and 1578, the Saxons,
+     Pommeranians and Mecklenburghers were prohibited to export
+     wool and to import cloth, in retaliation. Individual states
+     had much earlier adopted protective measures: G�ttingen, in
+     1430, prohibited the exportation of yarn, and in 1438, the
+     wearing of foreign woolen stuffs. (_Havemann_, Gesch. von
+     Braunschweig und Luneburg, I, 780 seq.) Hanseatic politics
+     recall in many respects the Venetian. After 1426, the sale
+     of Prussian ships to non-Hanseates was made as difficult as
+     possible; and in 1433, the importation of Spanish wool was
+     prohibited in order to compel the payment of debts by Spain.
+     (_Hirsch_, Gesch. des Danziger, H. 87, 268.) Prohibition of
+     the exportation of the precious metals to Russia at the end
+     of the thirteenth century. _Sartorius_, II, 444, 453, III,
+     191. The elector, Augustus of Saxony, forbade the
+     exportation of corn, wool, hemp and flax (Cod. Aug. I.,
+     1414). The Bavarian L. O., of 1553, prohibits generally the
+     sale of corn, cattle, malt, tallow, leather or other
+     _Plennwerthe_ to foreigners; which prohibition was, in 1557,
+     limited to cattle, malt, tallow, wool and yarn.
+
+     The protective system received its most important
+     development in Prussia. Prohibition by the margrave, about
+     the end of the thirteenth century, of the exportation of
+     woolen yarn. (_Stengel_, Pr. Gesch., I, 84.) In the
+     privilege accorded to the weavers of woolen wares, in 1414,
+     the importation of the less important cloths is forbidden
+     for two years. (_Droysen_, Preuss. Gesch. I, 323.) The
+     prohibition of the exportation of wool of 1582 assigns as a
+     reason of the prohibition, that the numerous leading weavers
+     should not be ruined for the sake of a few unmarried
+     journeymen and sellers. (_Mylius_, C. C. M., V, 2, 207.) In
+     the prohibitions of 1611 and 1629, the domains, the estates
+     of prelates and knights were exempted; similarly, in Saxony,
+     1613-1626; which is one of the many symptoms of the then
+     growing _Junkerthum_. The great elector, who attached, both
+     in war and peace, great value to the possession of coasts,
+     men-of-war and colonies, forbade, for instance, the
+     importation of copper and brass wares (1654), of glass
+     (1658), of steel and iron (1666), of tin (1687); farther,
+     the exportation of wool (1644), leather (1669), skins and
+     furs (1678), silver (1683), rags (1685). Home commodities
+     were, for the most part, stamped with the elector's arms,
+     and all which were not so stamped were prohibited. The
+     prohibition was generally preceded by a notice that the
+     elector had himself established or improved a manufactory,
+     or that the guilds (_Innungen_) had entered complaints
+     against foreign competition. Not till 1682 did the idea
+     occur to impose a moderate excise on the home product to be
+     favored, and a much higher duty on the foreign one; thus in
+     the case of sugar. (_Mylius_, IV, 3, 2, 16.) Frederick I.
+     continued this system especially for the forty-three
+     branches of industry hitherto unknown, and the introduction
+     of which was contemporaneous with the reception of the
+     Huguenots. (_Stengel_, 3, 48, 208.) Frederick William I., in
+     1719 and 1723, threatened the exportation of wool, under
+     certain circumstances, with death. (_Mylius_, V, 2, 4, 64,
+     80.) The severity with which he insisted that his officials
+     and officers should wear only home cloth is characteristic;
+     and the fact that in 1719 he threatened tailors who worked
+     foreign cloth, with heavy money fines and the loss of their
+     guild-rights. At the same time all workers in wool were
+     freed from military duty, and capitalists who had loaned
+     money to wool manufacturers were given a preference (1729).
+     Frederick the Great, who continued nearly all this,
+     prohibited the exportation of Silesian yarn, with the
+     exception of the very coarsest and finest, as well as of
+     that which had been bleached. Its exportation was allowed to
+     Bohemia only, because from here the linen went back again to
+     Silesia to be bleached and sold there. (_Mirabeau_, De la
+     Monarchie Pruss., II, 54.)]
+
+     [Footnote A3-6-6: Important beginnings of a protective
+     system in Sweden, under Gustavus Wasa, and again under
+     Charles IX., the violent opponent of the supremacy of the
+     nobility (_Geijer_, Schwed. Gesch. II, 118 ff., 346); while
+     Christian II., of Denmark, failed in all such endeavors. The
+     founder of the Russian industrial protection was Peter the
+     Great, who was in complete accordance with the native
+     theorist, _I. Possoschkow_: Compare _Br�ckner_, in the
+     Baltische Monatschrift, Bd. VI (1862), and VI (1863). Spain
+     first adopted a real protective system under the Bourbons.
+     The export prohibitions issued mostly at the request of the
+     cortes between 1550 and 1560 (_Ranke_, F�rsten und V�lker,
+     I, 400 ff.) must be considered as a remnant of the medieval
+     scarcity-policy, induced principally by a misunderstood
+     depreciation of the precious metals.]
+
+
+SECTION VII.
+
+HOW LONG IS PROTECTION JUSTIFIABLE?
+
+All rational education keeps in view as its object, the subsequent
+independence of the pupil. If it desired to continue its guardianship,
+the payment of fees, etc., until an advanced age, it would thereby
+demonstrate either the pupil's want of capacity or the absurdity of its
+methods. The industrial protective system also can be justified as an
+educational measure only on the assumption that it may be gradually
+dispensed with; that is, that, by its means, there may be a prospect of
+attaining to freedom of trade.[A3-7-1] In the case of all highly
+civilized nations, the presumption is in favor of freedom of trade, both
+at home and abroad, and in such nations, the desire for a protective
+system must be looked upon as a symptom of disease.[A3-7-2] [A3-7-3] It
+is true, that recently the inferiority of young countries, even when
+inhabited by a very active and highly educated people, is greatly
+enhanced by the improvement of the means of communication. But this is
+richly compensated for by the simultaneous instinct towards emigration,
+both of capital and workmen from over-full, highly industrial countries;
+whereas, the prohibitions by the state, that extreme of exportation
+embargoes, formerly so frequently resorted to, it is no longer possible
+to carry out.[A3-7-4] [A3-7-5] Now the young country has the advantage of
+being able immediately to use the newest processes of labor, etc.,
+without being hindered by the existence there of earlier imperfect
+apparatus. It is certain that international freedom of trade must be of
+advantage to a people's nationality the moment they have attained to the
+maturity of manhood, for the reason that they are thereby forced to make
+the most of that which is peculiar to them. Care must be taken not to
+confound many-sidedness with all-sidedness.[A3-7-6] The best "protection
+of national labor" might consist in this, that all products should be
+really individually characteristic (artistic), all individuals really
+national, and national also in their tastes as consumers. This ideal has
+been pretty closely approximated to by the French in respect to
+fashionable commodities, so that they will hardly purchase such from
+abroad, even without a protective tariff; and the cultured of most
+nations in respect to works of art. Here, too, it is worth considering,
+that even the most national of poets, when they are great enough to rise
+to the height of the universally human, possess the greatest
+universality.[A3-7-7]
+
+     [Footnote A3-7-1: _Colbert_ advised the companies in Lyons
+     to consider the privileges granted them only as crutches, by
+     means of which they might learn to walk the soonest
+     possible, it being the intention afterwards to do away with
+     them. (Journ. des Econom., Mai, 1854, p. 277.) Thiers said,
+     in the chamber of deputies, in 1834: _Employ� comme
+     repr�sailles, le tarif est funeste; Comme faveur, il est
+     abusif; Comme encouragement � une industrie exotique, qui
+     n'est pas importable il est impuissant et inutile. Employ�
+     pour prot�ger un produit, qui a chance de r�ussir, il est
+     bon; mais il est bon temporairement, il doit finer quand
+     l'education de l'industrie est finie, quand elle est
+     adulte._ _Schmitthenner_, Zw�lf B�cher vom Staate, I, 657
+     ff., admits that full freedom of trade between England and
+     Germany would be advantageous to the world in general; but
+     that England might here secure the entire gain even at the
+     cost of Germany, in part. _Schmitthenner's_ view is
+     distinguished from that of _List's_, against which
+     _Schmitthenner_ zealously seeks to maintain the priority of
+     his own (II, 365), disadvantageously enough, by this, that
+     it contains no pledge of subsequent freedom of trade.
+     _List_, on the contrary, considers universal freedom of
+     trade, not only as the ideal, but also as the object which
+     is to be striven for by temporary limitations on trade; an
+     object, indeed, attainable only where there are a great many
+     nations highly developed and in an equal degree, just as
+     perpetual peace supposes a plurality of states equal in
+     power. Ges. Schr., II, 35; III, 194. Compare, on this point,
+     _Hildebrand_, N. O. der Gegenwart und Zukunft, I, 87. That
+     _Carey_ advocates a perpetual protective tariff is connected
+     with his absolute inability to conceive the Malthusian law
+     of population. (_Held_, Carey's Socialwissenschaft und das
+     Merkantilsystem, 1866, p. 166.)
+
+     Thus, for instance, the prohibition of foreign cloths in
+     Florence begins in 1393, that is, at a time when the
+     protected industry had long been developed, so that its
+     products were exported on a great scale, but when it began
+     to fear the young, vigorous, competition of the Flemings.]
+
+     [Footnote A3-7-2: How frequently it happened in the
+     conquests of the French revolution or of Napoleon, or when
+     the Zollverein was extended, that two territories, now
+     united to each other, feared an outflanking of their
+     industries, each by the other, whose competition was
+     formerly excluded; and that, afterwards, the abolition of
+     the barriers to trade worked advantageously to both parties!
+     (_Dunoyer_, Libert� du Travail, VII, ch. 3.) The Belgian
+     manufacture of (coarse) porcelain flourished under Napoleon,
+     spite of the competition of S�vres. It declined after the
+     separation from France, notwithstanding protective duties of
+     20 per cent. (_Briavoinne_, Industrie Belge, II, 483.) The
+     French cotton manufacturers feared, in 1791, that the
+     incorporation of M�lhausen would necessarily produce their
+     downfall.]
+
+     [Footnote A3-7-3: In Venice, the relations of a workman who
+     had emigrated and refused to return home were imprisoned. If
+     this was of no avail, the emigrant was to be put to death.
+     (_Daru_, Hist. de V., III, 90.) It is said that this was
+     still the practice in 1754. (Acad. des Sc. mor. et polit.,
+     1866, I, 132.) Florence, in 1419, threatened its subjects
+     who carried on the brocade or silk industry, in foreign
+     countries, with death. Similarly, when the N�rnberg
+     Rothgiessers were prohibited, under pain of the house of
+     correction, showing their mills to a stranger. (_Roth_,
+     Gesch. des N. Handles, III, 176.) In Belgium, enticing
+     manufacturers of bone lace to emigrate was made punishable.
+     Austrian prohibition for glass-makers, in 1752; for
+     scythe-makers, in 1781. Colbert also approved of the
+     imprisonment of manufacturers desirous to emigrate.
+     (Lettres, etc., II, 568 ff.) By 5 Geo. I., ch. 28, and 23
+     Geo. II., ch. 13, the soliciting of an artificer to emigrate
+     to foreign countries is punished by one year's imprisonment
+     and �500 fine; and even workmen who do not respond to a call
+     home within six months lose all their reachable property in
+     England, and their capacity to inherit there. Every emigrant
+     had to certify that he was no artificer. The only effect of
+     this law was that the emigration of artificers to the United
+     States was made by the way of Canada; the poorer ones, at
+     most, were kept back by the cost of this circuitous route.
+     Hence the law was repealed in 1825. Compare Edinb. Rev.,
+     XXXIX, p. 341 ff.]
+
+     [Footnote A3-7-4: The first English prohibition of the
+     exportation of machinery was made in reference to the Lee
+     stocking frame, in 1696, the second in 1750; whereupon
+     others followed very rapidly after 1774. As late as 1825,
+     prohibitions of the exportation of a large number of
+     machines and of parts of machines were still in force; but
+     the Board of Trade might dispense with them. Here it was
+     considered whether a greater disadvantage was caused to the
+     industries by permitting the exportation, or to the
+     manufacturers of the machines by prohibiting it. _Porter_,
+     Progress, I, 318 ff., recommends full freedom of exportation
+     especially for the reason that Englishmen can now procure
+     all new machines, and sell the old ones to foreign
+     countries. On the other hand, a French manufacturer
+     purchased old machines _parce que sous le syst�me prohibitif
+     je gagnerai encore de l'argent avec ces metiers_. (_Rau_,
+     Lehrbuch, II, � 209.) Similar cases in the United States.
+     _Cairnes_, Principles, p. 485.]
+
+     [Footnote A3-7-5: _Bandrillart_, Manuel, p. 299. Every
+     nation needs, in order to become fully mature, an industry
+     of some magnitude. But it may just as well be the silk
+     industry as the cotton which shall lead to this maturity;
+     and when the nation has much greater natural capacity for
+     the former than for the latter, it would do well to reach
+     its object by the shortest course.]
+
+     [Footnote A3-7-6: _Riehl_, die deutsche Arbeit, p. 102 ff.,
+     107. Shakespeare, the most English of Englishmen, and yet
+     the most universal of poets! During the last centuries of
+     the middle ages most nations had come to have national and
+     even local costumes which were in strong contrast with the
+     universality of fashions during the age of chivalry. This
+     must have greatly contributed to the advancement of
+     industry, even before the introduction of the state
+     protective system.]
+
+     [Footnote A3-7-7: How much more convenient it is for the
+     statesman, when he does not need to give any thought to the
+     education of industry, is shown, especially by the great
+     difficulty of striking precisely the proper height of a
+     protective tariff. If too low, it fails of its object; and
+     so, likewise, if too high; because then, in a very
+     unpedagogical way, it lulls one into a lazy security. And
+     how impossible it is to make the tariff vary with every
+     variation in the cost of production, in price, etc.; as List
+     desired it should, not, however, without a good deal of
+     variation in his own views. (_Roscher_, Gesch. der N. O.,
+     II, 989 seq.) How greatly would not List have been obliged
+     to limit his assumptions, if he had lived to see the
+     universal exposition of 1862, at which English connoisseurs
+     expressed their pleasure that England had not remained
+     behind France and Germany in locomotive building? (Ausland,
+     19 Oct., 1862.) Hence _Sch�ffle_ opposes all protective
+     duties as an educational measure, because the "protected"
+     classes, by means of diets (_Landtage_), newspapers, etc. so
+     greatly influence legislation; that is, the educator is
+     influenced by the pupil! (System, 409 ff.) The usual
+     calculation of the cost for home undertakers (_Unternehmer_)
+     can always only strike the average, and hence it is too high
+     for some and too low for others. (_Rau_, Lehrbuch, II, �
+     214.) It frequently occurs that large manufacturers already
+     existing desire a low protective tariff to facilitate their
+     competition with foreign countries, possible even without
+     such tariff, but not high enough to encourage others to
+     compete with them at home.]
+
+
+SECTION VIII.
+
+INDUSTRIAL-PROTECTIVE POLICY IN PARTICULAR.
+
+If it be once established generally that an industry is to be
+artificially promoted, and if there be question only of a choice between
+the different measures to be adopted to thus promote it,
+moderate[A3-8-1] import duties are not only the most equable, least
+subject to abuse, but also attended by the greatest number of secondary
+advantages. Here the sacrifice is imposed on all the consumers of the
+"protected" commodity, that is, on the entire people, to the extent that
+they come in contact with the commodity in question. Export duties on
+raw materials, on the other hand, compel one single class of the people
+to make sacrifices in order to advance the favored industry.[A3-8-2]
+Export premiums for commodities on which labor has been expended are
+distinguished from import duties as the offensive from the defensive:
+the former promote the artificial trade, the trade which has gone beyond
+its natural basis, the latter curtail it.
+
+Premiums, advances without interest, gifts of machinery etc., to persons
+engaged in industry would operate very usefully under an omniscient
+government.[A3-8-3] But they generally fall to the lot not of the most
+skillful manufacturers, but of the most acceptable supplicants, who now
+are doubly dangerous to the former as competitors.[A3-8-4] The same is
+true to a still greater extent of monopolies granted to undertakings
+which it is intended to promote.[A3-8-5] They require, at least, to be
+vigilantly superintended in case of sale from one person to another;
+otherwise the individual to whom they were first granted is very apt to
+withdraw with the capitalized value of the privilege accorded, and his
+successors, loaded with a heavy debt in the nature of a mortgage, to
+derive no advantage from it.[A3-8-6]
+
+Further, import duties, besides the fiscal advantage which they afford,
+have the police advantage that they may, like quarantine provisions,
+prevent somewhat the inroads of many economic diseases: thus, for
+instance, gluts of the market, and still more, the severe chronic
+disease of ruinously low wages.[A3-8-7] But only very moderate hopes
+from protective duties should be entertained in all such respects as
+these.[A3-8-8]
+
+Prohibition proper operates, as a rule, very disastrously.[A3-8-9] It
+spoils those engaged in industry by a feeling of too great security
+(mortals' chiefest enemy: Shakespeare). It may even lead to complete
+monopoly, when the industry requires very large means and the country is
+small. The inducement to smuggling is peculiarly great here. But even
+duties, so high that they far exceed the insurance premium of smuggling,
+can be of very little advantage either to industry or to the exchequer.
+They can only promote the smuggling trade. However, the repeal of an
+import prohibition or the abolition of a tariff approaching to a
+prohibition should be announced long enough in advance to enable the
+capital invested in the protected industry to be withdrawn without too
+heavy a loss.
+
+     [Footnote A3-8-1: In general, _M�ser_ was in favor of
+     _Colbert_, and opposed to _Mirabeau_. (P. Ph. II, 26.) He
+     ridicules the prohibitions of the exportation of raw
+     material by saying that not only flax-seed, flax-yarn, but
+     also the linen, must remain in the country. As Raphael Mengs
+     once ennobled four ells of linen to a value of 10,000
+     ducats, a hundred Mengs should be sent for, to the end that
+     all the linen should be exported painted. (v. 25.)]
+
+     [Footnote A3-8-2: _Rau_, Lehrbuch, II, � 214, would prefer
+     to tolerate state premiums (politically so dangerous),
+     rather than protective duties, because, in the case of the
+     former, the magnitude of the assumed sacrifice may be
+     exactly estimated in advance. Similarly, _Bastiat_,
+     Sophismes, ch. 5.]
+
+     [Footnote A3-8-3: Many striking examples in _List's_
+     Zollvereinsblatt, 1843, No. 47.]
+
+     [Footnote A3-8-4: Under _Colbert_, the granting of a
+     monopoly had frequently no effect but to ruin an already
+     existing rural industry in the interest of a city
+     manufactory. Thus, in the case of lace, in Bourges and
+     Alen�on, and soap in the south, etc. The upshot of the
+     matter in some places was simply that the carriers on of
+     industry on a small scale were allowed to carry on their
+     industries in consideration of a payment made to the owners
+     of the privilege. (Journ. des Econ., 1857, II, 290.) The
+     King of Denmark bought back, in 1756, at a high price,
+     industrial privileges which his predecessors had granted
+     gratis. (_Justi_, Polizeiwissensch., � 444.) The Colbert
+     monopoly of the Hollander v. Robais (1665), who was the
+     first to manufacture fine cloths in France, was not
+     abolished until 1767. (Encycl. Mech. Arts et Manuf., II,
+     345.)]
+
+     [Footnote A3-8-5: Thus, for instance, in 1863, the
+     apothecary shops of the governmental district of Breslau had
+     a value of 2,791,227 thalers, of which the land and
+     inventories of stock were only 29 per cent. The concessions
+     represented 71 per cent. The sick, in the entire state of
+     Prussia, were obliged to contribute 1,780,000 thalers a year
+     to compensate these monopolists. Compare _Brefeld_, Die
+     Apotheken, Schutz oder Freiheit? (1863).]
+
+     [Footnote A3-8-6: _Hermann_, in his review of D�nniges'
+     System des freien Handels und der Sch�tzz�lle (M�nch. G. A.
+     Sept. und Octbr., 1847) calls attention to the point that a
+     decrease of the cost of production, by merely lowering
+     wages, is no gain to the national resources, but only an
+     altered distribution of them, for the most part a very
+     unfavorable one. But when a nation is advancing on this
+     road, it may strengthen its exportation by such means, as it
+     might granting export premiums at the expense of the
+     workmen. This would lead, on the supposition of entire
+     freedom of trade, to a corresponding depression of the lower
+     classes in other countries; and against such contagion a
+     protective tariff may operate in a manner similar to the
+     quarantine. This is much exaggerated by _Colton_, Public
+     Economy of the United States (1849), p. 65, 178. America
+     needs a protective tariff more than any other nation,
+     because of its dear workmen and capital. In Europe, the
+     upper classes rob labor of its product, while in America,
+     labor itself enjoys its products. Free trade would lower
+     America to the level of Europe.]
+
+     [Footnote A3-8-7: Severe crisis in the woolen industries of
+     America in 1874 ff., spite of an enormously high protective
+     tariff. The financial utility of a protective tariff can be
+     scarcely great, because the intention of the tariff to
+     permit as little as possible to be imported, and of the tax
+     to levy as much as possible, are irreconcilable.]
+
+     [Footnote A3-8-8: Frederick II., in 1766, forbade the
+     importation of 490 different commodities which, up to that
+     time, had only paid high duties. (_Mirabeau_, Monarchie,
+     Pr., II, 168.) In 1835, France still had 58 import and 25
+     export prohibitions.
+
+     They might, by way of exception, become necessary, in case a
+     foreign state should desire to make our protective duties
+     illusory by export premiums. But the exportation of Prussian
+     cotton stuffs, for instance, has increased, with a moderate
+     tariff, much more than the Austrian, with full prohibition.
+     The English silk manufactures were, so long as the
+     prohibition continued, inferior to the French, even in
+     respect to the machinery system. (_McCulloch_, Statist., I,
+     681.)]
+
+     [Footnote A3-8-9: In the case of circulating capital this is
+     generally done rapidly. The machines would have worn out,
+     and care is taken not to renew them. Buildings also can, for
+     the most part, serve other purposes. The most difficult
+     thing of all is for the masses of men, gathered together at
+     the principal seats of industry, artificially created, to
+     distribute themselves. Between the two rules: "No leap, but
+     gradual transition," and "cut the dog's tail off at once,
+     not piecemeal," the right mean is struck in the abolition of
+     a prohibitive protection, when, what it is intended to do,
+     is announced long in advance without maintaining vain hopes,
+     and a long space of time is left to enable people to make
+     their arrangements accordingly. This plan was followed in a
+     model manner in reference to the English silk prohibition,
+     under Huskisson. It was announced as early as 1824 that
+     protective duties of 30 per cent. would on the 5th of July,
+     1826, take the place of the prohibition. The duty on raw
+     silk was immediately reduced from 4 sh. to 3d. per pound,
+     and after a time, even to 1d., which so increased the demand
+     that the number of spindles rapidly increased from 780,000
+     to 1,180,000. During the 10 years from 1824, the importation
+     of raw and twisted silk amounted to about 1,941,000 pounds,
+     and in the 10 years after, to 4,164,000 pounds. The English
+     exports of silk wares had before 1824 a value of �350,000 to
+     �380,000; in 1830, of over �521,000; in 1854, of almost
+     �1,700,000; in 1863, of �3,147,000. Compare _Porter_,
+     Progress, I, 255 ff. On the other hand, Austria was
+     over-hasty when it went over from the prohibition of foreign
+     silk stuffs to duties of 180 florins per cwt. (Oest.
+     Weltausstellungsbericht von 1867, IV, 140.)]
+
+
+SECTION IX.
+
+WHAT INDUSTRIES ONLY SHOULD BE FAVORED.
+
+That as a rule only such industries should be favored which, by reason
+of the natural capacities of the country and of the people, have a good
+prospect of being able soon to dispense with the favors accorded, would
+be self-evident were it not for the fact that it has been ignored a
+thousand times in practice.[A3-9-1] It is especially necessary to take
+the natural station (_Standort_)[A3-9-2] as well as the natural
+succession of the different branches of industry into consideration.
+Half manufactured articles of foreign raw material should not be
+protected until the entire manufactured article has completely outgrown
+protection; which condition manifests itself most clearly by a strong,
+independent exportation of the article.[A3-9-3] The celebrated tariff
+controversy between the cotton spinners and the weavers in the
+Zollverein was probably without any conscious plan, but certainly to the
+well-being of German industry, settled essentially in accordance with
+these principles. In such struggles of the different stages of a branch
+of production with one another, it is necessary not only mechanically to
+weigh the number of workmen, the amount of capital, etc., on both sides,
+but also organically the capacity for development and the influence of
+both sides on the entire national life.[A3-9-4] Half-manufactured
+articles of a very superior quality should not be kept away, since by
+promoting commodities of the first quality they have an educational
+influence on the whole industry. Thus, in the case of the duties on
+iron, it should not be forgotten, that they enhance the price of all
+instruments of industry.[A3-9-5] Just as objectionable are protective
+duties for machines or for intellectual elements of training.[A3-9-6]
+
+     [Footnote A3-9-1: _Torrens_ calls an industry which can, in
+     the long run, bear no competition: "A parasitical formation,
+     wanting the vital energies while permitted to remain, and
+     yet requiring for its removal a painful operation." (Budget,
+     p. 49.) Especially frequent in the case of
+     luxury--industries in which the court was interested. The
+     oysters which were sent for to Venice under Leopold I., in
+     order to stock the artificial beds in the garden of the
+     president of the Exchequer reached Vienna, dead. (_Mailath_,
+     Gesch., IV, 384.) As to how Elizabeth, and Catharine II. in
+     Russia, desired to compel the cultivation of silk, and
+     caused the peasantry to be levied like recruits for that
+     purpose; as to how the latter petitioned against it in a
+     thousand ways, and endeavored to destroy the silk worms,
+     mulberry trees, etc., see _Pallas_, Reise durch das s�dliche
+     Russland, I, 154 ff. Frederick II.'s silk-protection is
+     characterized mainly by the order for church-inspectors to
+     keep tables (_Tabellen_) concerning it, and to look after
+     clergymen's and teachers' knowledge of the cultivation of
+     silk. Tragico-comic endeavors of the Shah Nasreddin to
+     establish manufactories in Persia: _Pollak_, Persien, II,
+     138 ff. One of the principal effects of the Mexican
+     protective system, since 1827, was the establishing of
+     manufactories on the coast only to cover up smuggling.
+     (_Wapp�us_, Mexiko, 83 ff.)]
+
+     [Footnote A3-9-2: When Holland stunted its bleach-yards by
+     high duties on linen, an industry in which it must always
+     remain behind many other nations, was favored at the expense
+     of another for which it possesses incomparable advantages.]
+
+     [Footnote A3-9-3: Even before _Colbert's_ time, French
+     jewelry was prepared from Italian gold wire, and exported in
+     great quantities. The mere rumor that it was contemplated to
+     impose heavy duties on gold wire, provoked plans for the
+     removal of the industry from Geneva to Avignon.
+     (_Farbonnais_, F. de Fr., I, 275.) When France protects its
+     raw silk, it makes the purchase of raw material in Italy
+     cheaper to all its competitors.]
+
+     [Footnote A3-9-4: According to _L. K�hne_ (Preuss.
+     Staatszeitung, 17 Decbr., 1842), the cotton yarn consumption
+     of Germany amounted to 561,000 cwt. per annum, of which the
+     home spin-houses yielded 194,000 cwt. Weaving employed
+     311,500 workmen with 32,250,000 thalers wages, spinning only
+     16,300 workmen with a little over 1,000,000 thalers wages.
+     Even if the entire yarn-want (_Garnbedarf_) were spun in the
+     interior, yet spinning would stand to weaving only as 1:5 in
+     the number of workmen, and as 1:8 in the amount of wages.
+     Hence the tariff of the Zollverein defended by Prussia,
+     placed the tariff on tissues (_Gewebe_) 25 times as high as
+     on yarn, while their prices stood to each other as 1:3-4.
+     _List_ (Zollvereinsblatt, 1844, No. 40 ff.) objected that
+     only by spinning industries of its own could Germany's
+     cotton-tissue industries become independent; since it was a
+     very different thing to procure the material to be worked
+     from the many mutually competing cotton countries, rather
+     than from an intermediate hand; and indeed, from the most
+     powerful industrial country of the world. (Compare, however,
+     _Faucher's_ Vierteljahrsschrift, 1863, Bd. I.) Besides,
+     there is the great importance of the spinning industries, in
+     order to come into immediate connection with America, the
+     most rapidly growing market, to influence Holland, and also
+     to advance navigation and the manufacture of machinery. In
+     opposition to _K�hne's_ calculation, _List_ says: A man who
+     lost eyes, ears, fingers and toes, would undergo only a
+     small loss of weight.]
+
+     [Footnote A3-9-5: Special calculations on this matter in
+     _Junghanns_, Fortschritt des Zollvereins (1849), I, 179.]
+
+     [Footnote A3-9-6: Frederick II. threatened the prosecution
+     of one's studies at a foreign university with a lifelong
+     exclusion from all civil and ecclesiastical offices; and, in
+     the case of the nobility, even with the confiscation of
+     their property. (_Mylius_, C. C. M. _Contin_, IV, 191,
+     Noviem C. C., I, 97.)]
+
+
+
+
+INDEX TO NAMES OF AUTHORS
+
+CITED IN THE PRINCIPLES.
+
+[The references are to the sections.]
+
+
+A.
+
+Acad�mie fran�aise, 42.
+
+Agricola, 116, 120.
+
+Ahrens, 16, 77.
+
+Algarotti, 49.
+
+Anacharsis, 116.
+
+Anaxagoras, 38.
+
+Anderson, A. (Origin of Commerce), 188.
+
+Anderson, J. (Nature of Corn Laws), 152, 154.
+
+Anonymous, authors of:
+
+  ---- Britannia languens, 123, 196.
+  ---- Discourse of Trade, Coyn and Paper-Credit, 48, 50, 90, 108, 123.
+  ---- England's great Happiness, 196.
+  ---- Interest of Money mistaken, 188.
+  ---- Paying old Debts without new Taxes, 49.
+  ---- Virginia's Verger, 9.
+  ---- (W. S.) Compendious or brief Examination of certain ordinary
+        Complaints, 137.
+
+Antisthenes, 225.
+
+Antoninus, 191.
+
+Arbuthnot, 135.
+
+Aretin, v., II, 118.
+
+Aristippos, 225.
+
+Aristophanes, 79, 202.
+
+Aristotle, 1, 2, 5, 9, 14, 36, 38, 43, 49, 57, 63, 69, 70, 75, 79, 81,
+100, 107, 116, 117, 190, 205, 250, 251, 253.
+
+Arnd, 20.
+
+Arnold, 184.
+
+Asgill, 49.
+
+Augustinis, de, 51.
+
+Auxiron, 154.
+
+
+B.
+
+Babbage, 57, 58, 106.
+
+Baboeuf, 79, 81.
+
+Bacon, 13, 21, 24, 50, 55, 98, 108, 114, 191, 204, 254.
+
+Bandini, 123, 188.
+
+Banfield, 115, 157, 205, 263.
+
+Bastiat, 2, 5, 9, 31, 35, 42, 54, 58, 81, 82, 84, 87, 97, 116, 117, 152,
+167, 185, 210, 238, 242, 243.
+
+Baudrillart, 21, 242.
+
+Baumstark, 20, 154.
+
+Bazard, 11, 53, 67, 84, 86, 90, 97, 205, 207.
+
+Beaumont, de, 250.
+
+Beccaria, 19, 49, 57, 79, 125, 126, 140, 256, 263.
+
+Becher, J. J., 98, 114, 214, 254.
+
+Beckmann, J., 225.
+
+Bentham, J., 12, 71, 193, 232, 250, 256.
+
+Berg, v., 76.
+
+Berkeley, 9, 47, 57, 95, 116, 123, 212, 214, 231, 254, 255.
+
+Bernhardi, v., 147, 154.
+
+Bernhardinus, 191.
+
+Bernoulli, 3, 246, 248.
+
+Besold, 137, 191.
+
+Bible, 11, 16, 36, 41, 63, 69, 81, 84, 190, 202, 204, 218, 225, 239,
+245, 255, 264.
+
+Biel, 22, 116, 120.
+
+Blackstone, 42, 86 87, 199.
+
+Blanc, L., 81, 82, 98, 167, 178.
+
+Blanqui, 169.
+
+B�ckh, 135, 137.
+
+Boden, 183.
+
+Bodin, J., 37, 137, 254.
+
+Bodz-Reymond, 97.
+
+Boisguillebert, 1, 9, 12, 49, 96, 97, 100, 111, 117, 123, 154, 214, 215.
+
+Booth, 243.
+
+Bornitz, 3, 114.
+
+Bossuet, 77, 191.
+
+Botero, G., 9, 210, 241, 242, 245.
+
+Boussingault, 32, 34.
+
+Boxhorn, 39, 94.
+
+Brentano, 166, 175, 176, 177.
+
+Bridge, 238.
+
+Brissot, 77.
+
+Broggia, 9, 116.
+
+Buat, 16.
+
+Buchanan, 152, 153, 154, 164.
+
+Buckle, 209, 263.
+
+B�lau, 17, 97.
+
+Buonarotti, 79.
+
+Buquoy, Count, 22, 34, 129, 147.
+
+Burke, 11, 220; II, 5, 106, 140, 155.
+
+B�sch, 2, 9, 42, 95, 96, 117, 123, 126, 170, 183, 263.
+
+
+C.
+
+Cabanis, 37.
+
+Cabet, 79, 82, 250.
+
+C�sar, Jul., 16.
+
+Calvin, 49, 79, 114, 191.
+
+Campanella, 79.
+
+Canard, 22, 42, 47, 95, 101, 106, 123, 152, 188, 195, 215.
+
+Cancrin, Count, 64, 98.
+
+Cantillon, 47, 49, 90, 98, 106, 123, 126, 128, 137, 144, 154, 161, 167,
+185, 193.
+
+Carey, 5, 42, 148, 154, 155, 157, 166, 172, 199, 214, 243, 253, 263.
+
+Carli, 137.
+
+Casper, 246.
+
+Cato, Cens., 43, 190, 222.
+
+Cazaux, 22, 127, 145.
+
+Celtes, 41.
+
+Cervantes, 55.
+
+Chadwick, 218, 248.
+
+Chalmers, Th., 216, 217, 242.
+
+Cherbuliez, 202.
+
+Chevalier, M., 11, 40, 66, 70, 89, 97, 116, 120, 121, 124, 128, 129,
+136, 137, 139, 142, 143, 173, 199, 216, 217, 220.
+
+Child, Sir J., 42, 97, 98, 114, 123, 154, 157, 188, 192, 193, 197, 199,
+241, 242, 254.
+
+Chrysippos, 250.
+
+Cibrario, 17, 137.
+
+Cicero, 9, 46, 49, 75, 100.
+
+Cieszkowsky, 89.
+
+Clemens, Rom., 81.
+
+Cleonard, 54.
+
+Cliquot de Blervache, 108.
+
+Cobden, R., 98.
+
+Coke, R., 196.
+
+Colbert, 232, 255.
+
+Colton, 12, 25, 42, 116, 201.
+
+Columella, 40, 59, 71.
+
+Comte, Ch., 37, 71.
+
+Condillac, 21, 49, 107, 129.
+
+Condorcet, 263.
+
+Consid�rant, 51, 88, 183.
+
+Constant, B., 168.
+
+Contzen, Ad., 49, 226.
+
+Cooper, Th., 12.
+
+Corpus Juris civilis, 69, 83, 117, 201.
+
+Corpus Juris canonici, 41.
+
+Corvaja, 82.
+
+Cournot, 22.
+
+Court, P. de la, 94, 97, 98, 108, 114, 185, 254.
+
+Culpeper, Sir Th., 154, 188, 192, 199.
+
+
+D.
+
+Dankwardt, 16, 56.
+
+Dante, 191, 250.
+
+Darjes, 19, 76, 96, 106, 192, 254.
+
+Darwin, 242.
+
+Davanzati, 116, 123.
+
+Davenant, 9, 10, 21, 97, 103, 116, 124, 157, 242, 254.
+
+Decker, Sir M., 10, 41.
+
+Defoe, D., 222.
+
+Demosthenes, 21, 42, 43, 89, 231.
+
+Diderot, 57.
+
+Dietzel, C., 42, 90.
+
+Diogenes, 225.
+
+Dithmar, 19.
+
+Dohm, 49, 263.
+
+Doubleday, 242.
+
+Drobisch, 13, 129.
+
+Droz, 46, 92, 214.
+
+Dufau, 18.
+
+Dumont, 225.
+
+Dunoyer, 16, 17, 21, 26, 38, 42, 50, 54, 111, 145, 178, 203, 216, 242.
+
+Dupont de Nemours, 5, 97, 108, 147.
+
+Duport, St. Clair, 139.
+
+Dutot, 96, 100, 116, 212.
+
+
+E.
+
+Eden, Sir F. M., 57, 140, 213.
+
+Edinburgh Review, 116, 154, 176, 242.
+
+Eiselen, 51, 95, 195.
+
+Enfantin, 250.
+
+Engel, 161, 162, 214, 240, 243, 246, 248.
+
+Epicharmos, 47.
+
+Erasmus, 41, 79, 191.
+
+Euler, 238.
+
+Euripides, 37, 226.
+
+Everett, 243.
+
+
+F.
+
+Fallati, 18, 21.
+
+Faucher, J., 1.
+
+Faucher, L., 178, 215.
+
+Faust, M., 137.
+
+Faxardo, Saavedra, 9, 254.
+
+F�n�lon, 225.
+
+Ferguson, 11, 16, 21, 44, 50, 63, 115, 210, 217, 224, 225, 226, 255.
+
+Fichte, J. G., 12, 82, 97, 123, 129, 204, 250.
+
+Filangieri, 225, 254.
+
+Fix, 4.
+
+Fleetwood, 143.
+
+Forbonnais, 68, 97, 116, 123, 173, 190, 200, 214, 254, 255.
+
+Forster, 79.
+
+Fortrey, Sam, 196.
+
+Fourier, Ch., 51, 66, 81, 85, 97, 183, 207, 250.
+
+Fox, 77.
+
+Franklin, B., 12, 33, 41, 42, 49, 71, 89, 97, 98, 107, 116, 128, 173,
+178, 203, 218, 219, 225, 232, 241, 242, 255.
+
+Fr�gier, 223.
+
+Friedl�nder, 4.
+
+Friedrich II. (Emperor), 49, 83.
+
+Friedrich, M., 16, 114, 244, 254.
+
+Fullarton, 123, 125.
+
+Fuoco, 11, 22, 121, 146, 154, 202.
+
+
+G.
+
+Galiani, 8, 9, 42, 47, 98, 100, 104, 116, 120, 126, 128, 129, 140, 142,
+167, 187, 197.
+
+Gallatin, 136.
+
+Ganilh, 12, 42, 51, 52, 55, 116, 123, 147, 180, 188, 196, 214, 216.
+
+Garcilasso, de la Vega, 9.
+
+Garnier, 16, 50, 137.
+
+Garve, 30, 50, 52, 99, 115, 173, 231.
+
+Gasparin, 161.
+
+Gavard, 17.
+
+Gee, 116.
+
+Geiler v. Kaisersberg, 39.
+
+Genovesi, 4, 16, 64, 97, 102, 123.
+
+Gerstner, 253.
+
+Gessler, 261.
+
+Gibbon, 234.
+
+Gioja, 2, 30, 42, 47, 51, 64, 191.
+
+Gobbi, 32.
+
+Godwin, 243, 250, 254.
+
+Goethe, 11, 25, 36.
+
+Goldsmith, 254.
+
+Gournay, 49, 108.
+
+Graham, 243.
+
+Graswinckel, 87.
+
+Gratian, 47.
+
+Graumann, 125.
+
+Graunt, 245.
+
+Gray, 243.
+
+Gregorius Tolosan, 48, 55.
+
+Grotius, H., 77, 87, 187, 191.
+
+Gu�rard, 143.
+
+G�nther, 194.
+
+
+H.
+
+Hackluyt, 9.
+
+Haller, K. L. v., 14, 256.
+
+Hamann, 117.
+
+Hamilton, 90, 152.
+
+Hanssen, 40, 126, 139, 140, 144.
+
+Harless, 81.
+
+Harrington, J., 98, 205, 253.
+
+Harris, 47, 57, 128, 180.
+
+Hegel, 3.
+
+Held, 146.
+
+Helferich, 86, 137.
+
+Helv�tius, 11, 38, 231.
+
+Herakleides, 225.
+
+Herbart, 16, 22.
+
+Herbert, 101, 142.
+
+Herber, J. G. v., 265.
+
+Hermann, F. B. W., 1, 2, 3, 11, 17, 42, 43, 44, 45, 50, 51, 101, 103,
+106, 108, 110, 113, 115, 118, 129, 137, 142, 144, 145, 146, 147, 150,
+152, 153, 154, 166, 172, 180, 181, 183, 186, 196, 196a, 199, 204, 208,
+211, 212, 216, 219, 231, 246, 259.
+
+Herodotus, 37.
+
+Herrmann, E., 101, 207.
+
+Heuschling, 154.
+
+Hildebrand, B., 5, 13, 18, 79, 90, 146, 205.
+
+Hippokrates, 37.
+
+Hobbes, 42, 47, 50, 77, 107, 116, 118.
+
+Hoffmann, J. G., 97, 117, 119, 159, 205, 246, 249.
+
+Homer, 71, 250.
+
+Hood, 168.
+
+Hopkins, 159.
+
+Horn, 245, 247, 248, 254.
+
+Horneck, v. 19, 114, 116, 254.
+
+Howlett, 39.
+
+Hufeland, 2, 5, 12, 13, 46, 51, 59, 66, 87, 106, 107, 111, 118, 152,
+195, 221.
+
+Hugo, G., 24, 69, 81.
+
+Humboldt, A. v., 32, 36, 61, 98, 106, 136, 139, 214.
+
+Hume, D., 11, 36, 42, 47, 50, 71, 96, 98, 116, 117, 121, 123, 125, 126,
+137, 154, 185, 200, 214, 225, 242, 263, 264.
+
+Hutcheson, 5, 11.
+
+Hutton, U. v., 225.
+
+
+I.
+
+Iambulos, 79.
+
+Isokrates, 57, 231.
+
+Ivernois, Sir F. d', 239, 246.
+
+
+J.
+
+Jacob, W., 120, 135, 137.
+
+Jakob, H. L. v., 16, 49, 71, 106, 107, 127, 128, 147, 153, 195, 217,
+219.
+
+Jarke, 202.
+
+Jevons, 22, 129.
+
+Johnson, S., 93.
+
+Jones, R., 148, 154.
+
+Jselin, 67.
+
+Jung, 76, 156; II, 53, 101, 173.
+
+Justi, v., 9, 17, 116, 199, 237, 254.
+
+
+K.
+
+Kant, 11, 87.
+
+Kauffmann, 3, 9, 126.
+
+Kautz, 29.
+
+Kees, v. 194.
+
+King, Ch., 48.
+
+King, G., 103.
+
+King, Lord, 124.
+
+Knapp, 246.
+
+Knies, 4, 5, 6, 7, 11, 18, 28, 42, 89, 95, 107, 116, 117, 139, 169, 189,
+213, 265.
+
+Kosegarten, 117, 202.
+
+Kraus, 17, 128, 137, 197, 265.
+
+Krause, 170.
+
+Kr�ncke, 22, 147.
+
+Krug, L., 192, 254.
+
+Kudler, 49, 128.
+
+
+L.
+
+Lafitte, 202.
+
+Lang, 22.
+
+Laspeyres, 129.
+
+Lassalle, 45, 84, 163, 196a.
+
+Lau, 245.
+
+Lauderdale, Lord, 8, 9, 50, 51, 99, 103, 104, 106, 117, 128, 132, 147,
+200, 214, 217, 221, 231, 263.
+
+Lavergne, L. de, 139.
+
+Law, 42, 96, 101, 107, 115, 116, 117, 121, 123, 127, 254.
+
+Legoyt, 245.
+
+Leib, 48, 237b.
+
+Leibnitz, 13, 114, 140, 254.
+
+Leopoldt, II, 87, 145.
+
+Leplay, 65.
+
+Letronne, 137, 214.
+
+Libanios, 174.
+
+Liebig, J. v., 162.
+
+Linguet, 69, 174.
+
+List, Fr., 45, 46, 50, 64, 98, 154, 260.
+
+Liverpool, Lord, 118, 120, 142.
+
+Livy, 231.
+
+Locke, J., 5, 42, 47, 77, 100, 107, 116, 123, 129, 152, 154, 158, 188,
+191, 193, 194, 199, 254.
+
+Lotz, 5, 17, 20, 49, 50, 98, 99, 100, 115, 123, 128, 144, 166, 169, 195,
+202.
+
+Louis XIV., 221.
+
+Lowe, 129, 219.
+
+Lueder, 37, 50, 117.
+
+Luther, M., 41, 49, 57, 114, 128, 191, 254.
+
+
+M.
+
+Mably, 79, 81.
+
+Macculloch, 21, 40, 42, 43, 47, 50, 93, 107, 112, 113, 151, 164, 166,
+173, 188, 197, 212, 253, 264.
+
+Machiavelli, 21, 191, 238, 242, 244.
+
+Macleod, 89, 90, 107, 115, 123, 154.
+
+Macpherson, 143.
+
+Malthus, 3, 9, 33, 42, 43, 50, 55, 79, 80, 98, 100, 107, 111, 112, 128,
+129, 147, 152, 153, 157, 159, 163, 164, 166, 183, 185, 188, 205, 214,
+216, 217, 239, 241, 242, 243, 244, 247, 258, 263.
+
+Malthusians, 217, 254.
+
+Mandeville, 11, 57, 225.
+
+Mangoldt, v., 6, 16, 22, 30, 43, 51, 53, 59, 63, 71, 106, 129, 146, 149,
+153, 157, 167, 177, 181, 195, 205, 220.
+
+Mariana, 100, 114, 231.
+
+Marlo, K., 71, 79, 178, 207, 242, 250, 251, 258.
+
+Martineau, H., 176.
+
+Marx, K., 22, 42, 47, 107, 189.
+
+Masius, 237.
+
+Massie, 42.
+
+Melanchthon, 79, 100, 191.
+
+M�lon, 42, 90, 91, 97, 123, 225, 254.
+
+Menander, 174.
+
+Mendelsohn, 77.
+
+Menger, 2, 5, 101, 112.
+
+Mengotti, 50.
+
+Mercier de la Rivi�re, 22.
+
+Mercantilists, 9, 47, 48, 96, 97, 116, 121, 126, 225, 236, 254; new,
+116.
+
+Merivale, 172.
+
+Meyer, G., 246.
+
+Michaelis, 135.
+
+Mill, J., 47, 126, 216.
+
+Mill, J. S., 5, 20, 22, 34, 38, 40, 42, 46, 51, 74, 79, 88, 90, 97, 106,
+107, 111, 113, 121, 126, 150, 152, 153, 157, 163, 164, 166, 170, 172,
+176, 177, 178, 180, 183, 186, 188, 192, 195, 197, 213, 216, 221, 243,
+250, 259, 262, 264.
+
+Minard, 223.
+
+Mirabeau, Marq. de, 95, 97, 98, 117, 144, 147, 191, 210, 214, 254, 263.
+
+Mirabeau, Son, 256.
+
+Mischler, 1.
+
+Mittermaier, 94.
+
+Mohl, R., 242, 253, 258, 259, 262.
+
+Moleschott, 162.
+
+Moncada, 137.
+
+Montaigne, M., 98, 236.
+
+Montanari, 100, 116, 123, 125, 127, 188, 220.
+
+Montchr�tien de Vatteville, 9, 16, 48, 57.
+
+Montecuccoli, 16.
+
+Montesquieu, 37, 77, 89, 95, 116, 118, 123, 185, 192, 199, 205, 220,
+221, 237, 238, 240, 248.
+
+Moreau de Jonn�s, 18.
+
+Morelly, 79.
+
+Morhof, 19.
+
+Moritz (Marschall von Sachsen), 255.
+
+Morrison, 176, 178.
+
+Mortimer, Th., 173, 175; II, 53.
+
+Morus, Th., 79, 98, 117, 147, 166.
+
+M�ser, J., 42, 63, 69, 91, 117, 161, 169, 173, 191, 200, 226, 242, 248,
+254, 256.
+
+M�ller, Ad., 3, 5, 11, 12, 22, 28, 42, 50, 55, 64, 116, 117, 120, 202.
+
+Mun, Th., 48, 116.
+
+Muret, 239.
+
+Murhard, K., 52.
+
+
+N.
+
+Nau, 19.
+
+Nebenius, 89, 120, 137, 150, 182, 184, 186, 187, 195, 199, 219.
+
+Necker, 103, 163, 204, 254.
+
+Neri, P., 100, 118, 120.
+
+Neumann, F. J., 6, 16, 100, 246.
+
+Newmarch, 137.
+
+Niebuhr, B. G., 92.
+
+North, Sir D., 9, 12, 47, 48, 97, 98, 114, 116, 121, 123, 152, 154, 179,
+191.
+
+
+O.
+
+Obrecht, 237a;
+
+II, 164.
+
+Oppenheim, 116.
+
+Oresmius, 116, 120.
+
+Ortes, 16, 34, 38, 117, 194, 217, 242.
+
+Owen, R., 66, 128.
+
+
+P.
+
+Pagnini, 100, 137.
+
+Paley, 50, 254.
+
+Palmieri, 9.
+
+Paoletti, 173.
+
+Paris, Comte de, 176.
+
+Patricius, 48, 246, 254.
+
+Paucton, 143.
+
+Paullus, Jul., 116.
+
+Perikles, 231.
+
+P�rin, 11, 254.
+
+Petty, Sir W., 16, 47, 48, 57, 107, 116, 123, 127, 129, 154, 164, 193,
+214, 254.
+
+Philemon, 69.
+
+Physiocrates, 5, 8, 47, 49, 97, 101, 106, 128, 147, 154, 159, 214, 221,
+225, 254.
+
+(Pinto), 90, 98, 123, 221, 225.
+
+Pitt, 254.
+
+Plato, 9, 12, 21, 23, 42, 57, 61, 62, 79, 116, 190, 211, 250, 251.
+
+---- Eryxias, 116.
+
+Plinius (Major), 71, 79, 117, 120, 225, 231.
+
+Plotinos, 79.
+
+Plutarch, 73.
+
+P�litz, 17; II, 194.
+
+Pollexfen, 9.
+
+Porter, 129, 205.
+
+Postlethwayt, 173.
+
+Price, 238.
+
+Prittwitz, v., 17, 51, 214, 263.
+
+Proudhon, 5, 66, 70, 77, 81, 82, 85, 97, 185.
+
+Puchta, G. F., 11, 14.
+
+Purves, 253.
+
+
+Q.
+
+Quesnay, 42, 44, 47, 49, 98, 101, 116, 121, 123, 125, 137, 147, 154,
+214, 221, 254.
+
+Qu�telet, 18, 248.
+
+
+R.
+
+Rae, 45, 59.
+
+Raleigh, Sir W., 140, 241, 252, 254.
+
+Rau, K. H., 3, 5, 6, 9, 20, 22, 33, 38, 42, 43, 49, 50, 58, 64, 101,
+106, 109, 110, 111, 112, 116, 118, 120, 129, 131, 137, 143, 144, 145,
+146, 147, 153, 156, 161, 166, 168, 179, 181, 194, 195, 208, 212, 216,
+225, 253.
+
+Raumer, F. v., 49.
+
+Raynal, 49, 62, 214.
+
+Read, 195.
+
+Reformers, 47.
+
+Reitemeyer, 135.
+
+Reybaud, 78, 79.
+
+Ricardo, 1, 5, 22, 43, 44, 66, 90, 106, 107, 109, 111, 126, 129, 147,
+148, 150, 151, 152, 153, 154, 157, 164, 173, 175, 183, 184, 185, 186,
+188, 195, 197, 201, 202, 212, 216, 263.
+
+Ricardo's School, 47, 128, 157, 183, 197, 200.
+
+Richelieu, 16.
+
+Riedel, 16, 31, 65, 106, 118, 179, 195; II, 139, 187.
+
+Riehl, 41, 56, 169, 230.
+
+Ritter, K., 37.
+
+Rivet, 258.
+
+Rodbertus, 97, 135, 154, 201.
+
+Roesler, 90, 157, 173, 193, 195, 207.
+
+Rossi, 9, 42, 46, 243, 248.
+
+R�ssig, 19.
+
+Rousseau, J. J., 16, 57, 62, 79, 169, 202, 205, 229, 254.
+
+R�melin, 18.
+
+
+S.
+
+Sadler, Th., 239, 242, 243, 245.
+
+St. Chamans, 8, 90, 116, 123, 144, 214.
+
+St. Just, 79.
+
+St. Simon, 54, 70, 80, 84, 86, 90.
+
+St. Simonists, 54, 70, 80, 84, 86, 90.
+
+Sallustius, 14, 21.
+
+Salmasius, 89, 97, 114, 116, 191, 193.
+
+Sartorius, 29, 128.
+
+Say, J. B., 1, 12, 16, 20, 22, 42, 43, 47, 50, 51, 53, 55, 58, 71, 87,
+90, 98, 104, 106, 108, 115, 129, 137, 144, 145, 147, 151, 154, 169, 183,
+195, 199, 200, 212, 216, 218, 223, 231, 243, 256, 263.
+
+Say, L., 4, 9.
+
+Scaruffii, 134.
+
+Sch�ffle, 1, 2, 3, 4, 12, 30, 42, 43, 44, 47, 79, 89, 102, 110, 114,
+117, 129, 152, 159, 176, 196a, 207, 208, 218, 246, 250, 251, 258.
+
+Schiller, Fr., 30, 169, 204.
+
+Schleiermacher, 16, 55, 63.
+
+Schlettwein, 128, 145.
+
+Schlazer, U. L. v., 18, 144.
+
+Schl�zer, Chr. v., 42, 116, 117, 128, 168, 185, 254.
+
+Schmalz, 17, 19, 152, 195.
+
+Schmitthenner, 42, 44, 50, 54, 95, 99, 108, 116, 117, 121, 224, 253.
+
+Schmoller, 42, 147.
+
+Sch�n, J., 11, 50, 97, 195.
+
+Schr�der, v., 9, 19, 42, 53, 54, 90, 116, 199, 210, 221.
+
+Schulze, F. G., 20, 69, 96.
+
+Sch�z, 11.
+
+Scialoja, 13, 17, 38, 41, 51.
+
+Seckendorff, B. L. v., 19, 114, 116, 237, 254.
+
+Seneca, L., 51, 69, 79, 100, 190, 214.
+
+Seneca, M., 251.
+
+Senior, 2, 22, 33, 34, 40, 46, 58, 102, 110, 112, 115, 121, 126, 129,
+130, 142, 143, 148, 152, 155, 161, 165, 166, 167, 169, 173, 180, 181,
+183, 185, 187, 189, 195, 200, 212, 242.
+
+Serra, 33, 48, 181.
+
+Shakespeare, 191.
+
+Shuckburgh, 132, 137.
+
+Sismondi, 12, 22, 44, 50, 54, 55, 93, 97, 98, 106, 109, 117, 123, 128,
+144, 145, 147, 153, 154, 168, 174, 195, 201, 210, 214, 215, 216, 221,
+231, 242.
+
+Smith, Ad., 1, 2, 5, 11, 12, 20, 39, 40, 42, 44, 47, 48, 49, 52, 55, 57,
+58, 59, 66, 71, 81, 91, 97, 98, 104, 106, 107, 111, 112, 113, 116, 117,
+119, 120, 121, 123, 125, 128, 129, 130, 131, 134, 135, 137, 144, 147,
+148, 153, 154, 157, 161, 163, 164, 166, 167, 168, 171, 172, 174, 176,
+179, 183, 185, 186, 192, 193, 195, 197, 202, 213, 214, 218, 221, 226,
+236, 238, 242.
+
+Smith, Th., 116, 137.
+
+Socialists, 6, 9, 12, 22, 53, 62, 66, 81, 82, 85, 88, 97, 117, 147, 148,
+202, 205, 214, 242, 254, 265.
+
+Soden, Graf, 16, 51, 92, 129, 194, 212.
+
+Soetbeer, 138.
+
+Socrates, 9, 71, 100, 250, 251.
+
+Solera, 120.
+
+Solly, 214.
+
+Sonnenfels, v., 160, 194, 254.
+
+Spinoza, 88, 254.
+
+Spittler, 81.
+
+Stahl, F. J., 24, 78.
+
+Stein, K. v., 254, 265.
+
+Stein, L. v., 14, 16, 46, 79, 98, 207.
+
+Steinlein, 30, 47, 61.
+
+Steuart, Sir J., 16, 20, 25, 34, 42, 71, 100, 104, 117, 123, 127, 134,
+137, 147, 157, 199, 201, 213, 224, 239, 242, 253, 254, 263.
+
+Stoics, 72.
+
+Storch, H., 2, 3, 5, 7, 8, 10, 17, 27, 46, 50, 53, 55, 62, 71, 91, 96,
+106, 115, 116, 117, 120, 145, 147, 165.
+
+Strabo, 37, 61.
+
+Struensee, v., 90, 96, 119, 210.
+
+S�ssmilch, 239, 245, 247, 254, 256.
+
+
+T.
+
+Tacitus, 41, 238, 250, 251.
+
+Temple, Sir W., 41, 57, 98, 104, 115, 157, 185, 188, 214, 222, 231, 254.
+
+Tengoborsky, 40, 139.
+
+Thaer, 69, 112, 129, 131.
+
+Thiers, 77.
+
+Thomas, Aquin, 21, 49, 57, 191.
+
+Thomasius, Chr., 19, 114.
+
+Thornton, H., 101, 123, 125, 193.
+
+Thornton, W., 164, 166, 176, 253.
+
+Thucydides, Pref., 16, 36, 63, 229.
+
+Th�nen, v., 22, 106, 117, 149, 151, 154, 158, 161, 165, 173, 178, 183,
+195.
+
+Tocqueville, 71.
+
+Tooke, Th., 100, 103, 104, 107, 108, 109, 112, 113, 123, 128, 137, 139,
+157, 179, 188, 193.
+
+Torrens, 9, 58, 107, 126, 130, 157, 164, 260, 262.
+
+Townsend, 242.
+
+Tucker (Progress of the U. S.), 71.
+
+Tucker, J., 1, 16, 54, 57, 97, 98, 102, 130, 200, 216, 219, 254, 256,
+262.
+
+Turgot, 5, 9, 37, 42, 47, 49, 57, 70, 71, 90, 92, 95, 115, 116, 117,
+152, 159, 163, 178, 188, 191, 193, 194, 221, 232.
+
+Twiss, 121.
+
+
+U.
+
+Ulloa, 116.
+
+Umpfenbach, 39, 82, 152, 173.
+
+Ure, 173, 176.
+
+Ustariz, 241.
+
+
+V.
+
+Varro, 71.
+
+Vasco, 192, 194.
+
+Vauban, 9, 78, 147, 254.
+
+Vaughan, R., 107.
+
+Verri, 8, 9, 16, 42, 49, 55, 97, 98, 100, 101, 116, 123, 159, 205, 214,
+232, 254.
+
+Viaaxnes, 191.
+
+Villegardelle, 81.
+
+Virgilius, 117.
+
+Voltaire, 11, 98, 210, 225, 254, 255.
+
+
+W.
+
+Wagner, Ad., 13, 90.
+
+Wakefield, D., 51, 64, 89.
+
+Wakefield, E. G., 130, 185, 259.
+
+Walker, A., 151, 152, 176, 195, 202, 206, 242.
+
+Wallace, 242.
+
+Wapp�us, 246, 248.
+
+Watts, 176.
+
+Weinhold, 258.
+
+Weishaupt, 214.
+
+Wells, 10.
+
+West, 154.
+
+Weyland, 242, 243.
+
+Whately, 17, 21, 110, 149.
+
+Wirth, M., 185.
+
+Wit, J. de, 92, 108.
+
+Wolf, Chr. v., 175, 256.
+
+Wolkoff, 35, 42, 43, 161, 186.
+
+Woodward, 88.
+
+
+X.
+
+Xenophon, 9, 21, 57, 98, 100, 116.
+
+
+Y.
+
+Young, A., 32, 40, 42, 110, 137, 143, 242, 254.
+
+
+Z.
+
+Zachari�, K. S., 29, 37, 83, 87, 97, 128, 214, 229.
+
+Zeno, 98.
+
+Zincke, 49.
+
+Zwinglius, 191.
+
+
+
+
+DAVID ATWOOD, STEREOTYPER AND PRINTER, MADISON, WIS.
+
+
+
+Transcriber's Notes:
+
+Footnotes were moved to the end of the section to which they pertain.
+Because footnote numbers in the original begin at '1' for each section,
+the section number has been added before the footnote number, e.g. the
+first footnote in section 156 appears as: [156-1].
+
+In the Index to Names of Authors, references to sections 1 - 143 pertain
+to Volume 1. See https://www.gutenberg.org/ebooks/27698.
+
+The square root symbol is indicated by 'sqrt' followed by the figure in
+parentheses.
+
+In Footnote 174-8, the year '1700' in column B is as printed in the
+original, but may be a typo for '1800.' Column header codes were added to
+the tables in Footnotes 247-4 and 253-4 so that the tables would fit the
+page in standard view.
+
+Punctuation, including accents in French and Spanish, was standardized.
+Hyphenated words were standardized. For consistency with the remaining
+text, an umlaut was added to 'co�perate.' Duplicate words, e.g. 'the the,'
+were removed. Obsolete and alternative spellings were retained.
+
+  Other changes:
+    Section Footnote Alteration
+        145      - 'praticable' to 'practicable'
+        145    4 - 'higly' to 'highly'
+        146    1 - 'innocousness' to 'innocuousness'
+        154    7 - 'analagous' to 'analogous'
+        156    2 - 'diffcult' to 'difficult' and header added to right
+                   columns of table for clarity
+        161    4 - beginning of word, line 12 is missing.
+        162        'CXLII' to 'CLXII'
+        163        'themslves' to 'themselves'
+        164    5 - 'Sclavic' to 'Slavic'
+        167    8 - 'Hildebraud' to 'Hildebrand'
+        169    8 - '80' to '0.80' francs
+        174    2 - 'collossal' to 'colossal'
+        175    1 - 'domicil' to 'domicile'
+        176    1 - 'Spiers' to 'Spires' ('Speyer' in German)
+        177    4 - 'Eninb.' to 'Edinb.'
+        177    8 - 'tradesmens'' to 'tradesmen's'
+        178    5 - 'anterest' to 'interest'
+        183    4 - added '5' to '5/12'; numerator is blank in the original.
+        184    3 - 'Haudbuch' to 'Handbuch'
+        185    2 - 'Peleponnesian' to 'Peloponnesian'
+        186    9 - 'Staatswirthschatliche' to 'Staatswirthschaftliche'
+        191   10 - 'Samalsius' to 'Salmasius'
+        192    3 - 'analagous' to 'analogous'
+        193      - 'exceeedingly' to 'exceedingly'
+        194    1 - 'Confedration' to 'Confederation'
+        205    6 - 'anuum' to 'annum'
+        205    8 - in last paragraph, added decimal to '131.2'
+        207    4 - 'capaple' to 'capable'
+        207    8 - 'passsionn�es' to 'passionn�es'
+        208    4 - anchor missing in original; placed in likely position.
+        212      - 'pnrposes' to 'purposes'
+        213    1 - 'Smilh' to 'Smith'
+        213    3 - 'analagous' to 'analogous'
+        214      - 'civlization' to 'civilization'
+        214    8 - 'carricature' to 'caricature' and
+                   'r�ciprocquement' to 'r�ciproquement'
+        217      - 'but' to 'butt' ... butt-ends of the gun ...
+        219    2 - 'partment' to 'department'
+        220    5 - 'Similarlly' to 'Similarly'
+        221    2 - 'Lois' to 'Louis'
+        224      - 'itfelf' to 'itself'
+        228   13 - 'childrens'' to 'children's'
+        230    3 - 'candalabras' to 'candelabras'
+        231    1 - 'accounr' to 'account'
+        232      - 'palateable' to 'palatable'
+        232    5 - anchor missing in original; placed in likely position.
+        234    3 - 'as' to 'an' ... as an excuse.
+        235      - 'in stead' to 'instead'
+        237    2 - '�rarium' to '�rarian'
+        237a   5 - 'capiital' to 'capital'
+        237b   2 - 'chimnies' to 'chimneys'
+        237c   2 - 'Silesea' to 'Silesia'
+        237d   6 - 'Rheinish' to 'Rhenish'
+        238    1 - 'Teleogically' to 'Teleologically'
+        238    1 - 'Worterbuche' to 'W�rterbuch'
+        239    2 - 'soci�ti�' to 'soci�t�' and 'divise�' to 'divis�e'
+        239    3 - 'Enqu�te ... occulte' to 'Enqu�te ... occultes'
+        240      - 'uniformily' to 'uniformly'
+        242      - 'incontestibly' to 'incontestably'
+        242      - 'grevious' to 'grievous'
+        242    5 - 'imposees' to 'impos�es'
+        242   10 - 'Chateanneuf' to 'Ch�teauneuf'
+        242   10 - 'Familes' to 'Familles'
+        242   15 - 'Reflessioni ... Populazione' to
+                     'Riflessioni ... Popolazione'
+        243    7 - 'extraordinay' to 'extraordinary'
+        244    5 - 'Germanans' to 'Germans'
+        244    6 - 'civtilzed' to 'civilized'
+        245    5 - added 'of' to phrase '... one of the principal ...'
+        245    8 - 'Persannes' to 'Persanes'
+        245   12 - 'Prussaia' to 'Prussia'
+        246   11 - 'Gessellschaft' to 'Gesellschaft'
+        247    7 - 'Pommeranian' to 'Pomeranian'
+        248    8 - 'geater' to 'greater'
+        249    3 - 'legitamatized' to 'legitimatized'
+        249    7 - 'Vicbahn' to 'Viebahn'
+        249   10 - 'Chatelet' to 'Ch�telet'
+        249   14 - 'Mediceinische' to 'Mediceische'
+        249   15 - 'Duchatelet' to Du Ch�telet'
+        250    3 - 'frauz�sischen' to 'franz�sischen'
+        250    4 - 'Plutatch' to 'Plutarch'
+        250    5 - 'Thesmophoriazasuses' to 'Thesmophoriazusae'
+        250    7 - 'rennaissance' to 'renaissance'
+        250    7 - 'Pausam.' to 'Pausan.'
+        250   10 - 'Weltjkonomie' to 'Welt�konomie'
+        251      - 'p lyandry' to 'polyandry'
+        251    2 - 'transkaukasia' to 'Transkaukasia'
+        252    1 - 'Litthuanian' to 'Lithuanian'
+        253      - 'earlist' to 'earliest' and 'manifest' to 'manifests'
+        253    1 - 'Akadamie' to 'Akademie'
+        253    7 - 'Schmithenner' to 'Schmitthenner'
+        254    2 - 'Politche' to 'Politiche'
+        254    4 - 'Phillippe' to 'Philippe'
+        256    8 - 'Freidrichs' to 'Friedrichs'
+        256    9 - 'Salsburg' to 'Salzburg'
+        256   10 - 'end' to 'und'
+        256   12 - 'Spiers' to 'Spires'
+        258   17 - 'Un' to 'An'; 'Milleleuropa' to 'Mitteleuropa'; and
+                     'kultivirten' to 'kultivieren'
+        259    5 - 'Sclavic' to 'Slavic'
+        262    2 - 'Appollo' to 'Apollo'
+        262a   4 - 'Appenines' to 'Apennines'
+        262a   6 - 'bivouacing' to 'bivouacking'
+        263    1 - 'histoirique' to 'historique'
+        264    2 - 'controvery' to 'controversy'
+  Apx 2   1      - 'ausgebeuteteten' to 'ausgebeuteten'
+      2   1    3 - 'univesrsalissima' to 'universalissima'
+      2   1    5 - 'commerzio' to 'commercio'
+      2   2   12 - 'Mauth' to 'Maut'
+      2   4      - 'Realisirung' to 'Realisierung'
+      2   4    3 - 'Menreinfuhr' to 'Mehreinfuhr'
+      2   5    5 - 'an' to 'au'
+      2   6    1 - 'Astarta' to 'Astarte'
+      2   6    4 - 'Nymweg' to 'Nijmegen'
+      3   4    7 - 'resourcess' to 'resources'
+      3   7    1 - 'repressailles' to 'repr�sailles' and
+                     'Mercantilsystem' to 'Merkantilsystem'
+  Index            'Obrecht, 238a' to 'Obrecht, 237a'
+
+
+
+
+
+End of the Project Gutenberg EBook of Principles of Political Economy, Vol.
+II, by William Roscher
+
+*** END OF THIS PROJECT GUTENBERG EBOOK PRINCIPLES POLITICAL ECONOMY, VOL II ***
+
+***** This file should be named 38655-8.txt or 38655-8.zip *****
+This and all associated files of various formats will be found in:
+        https://www.gutenberg.org/3/8/6/5/38655/
+
+Produced by Frank van Drogen, Carol Brown, Gwen Adams,
+Elizabeth Oscanyan, and the Online Distributed Proofreading
+Team at https://www.pgdp.net.
+
+
+Updated editions will replace the previous one--the old editions
+will be renamed.
+
+Creating the works from public domain print editions means that no
+one owns a United States copyright in these works, so the Foundation
+(and you!) can copy and distribute it in the United States without
+permission and without paying copyright royalties.  Special rules,
+set forth in the General Terms of Use part of this license, apply to
+copying and distributing Project Gutenberg-tm electronic works to
+protect the PROJECT GUTENBERG-tm concept and trademark.  Project
+Gutenberg is a registered trademark, and may not be used if you
+charge for the eBooks, unless you receive specific permission.  If you
+do not charge anything for copies of this eBook, complying with the
+rules is very easy.  You may use this eBook for nearly any purpose
+such as creation of derivative works, reports, performances and
+research.  They may be modified and printed and given away--you may do
+practically ANYTHING with public domain eBooks.  Redistribution is
+subject to the trademark license, especially commercial
+redistribution.
+
+
+
+*** START: FULL LICENSE ***
+
+THE FULL PROJECT GUTENBERG LICENSE
+PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK
+
+To protect the Project Gutenberg-tm mission of promoting the free
+distribution of electronic works, by using or distributing this work
+(or any other work associated in any way with the phrase "Project
+Gutenberg"), you agree to comply with all the terms of the Full Project
+Gutenberg-tm License (available with this file or online at
+https://gutenberg.org/license).
+
+
+Section 1.  General Terms of Use and Redistributing Project Gutenberg-tm
+electronic works
+
+1.A.  By reading or using any part of this Project Gutenberg-tm
+electronic work, you indicate that you have read, understand, agree to
+and accept all the terms of this license and intellectual property
+(trademark/copyright) agreement.  If you do not agree to abide by all
+the terms of this agreement, you must cease using and return or destroy
+all copies of Project Gutenberg-tm electronic works in your possession.
+If you paid a fee for obtaining a copy of or access to a Project
+Gutenberg-tm electronic work and you do not agree to be bound by the
+terms of this agreement, you may obtain a refund from the person or
+entity to whom you paid the fee as set forth in paragraph 1.E.8.
+
+1.B.  "Project Gutenberg" is a registered trademark.  It may only be
+used on or associated in any way with an electronic work by people who
+agree to be bound by the terms of this agreement.  There are a few
+things that you can do with most Project Gutenberg-tm electronic works
+even without complying with the full terms of this agreement.  See
+paragraph 1.C below.  There are a lot of things you can do with Project
+Gutenberg-tm electronic works if you follow the terms of this agreement
+and help preserve free future access to Project Gutenberg-tm electronic
+works.  See paragraph 1.E below.
+
+1.C.  The Project Gutenberg Literary Archive Foundation ("the Foundation"
+or PGLAF), owns a compilation copyright in the collection of Project
+Gutenberg-tm electronic works.  Nearly all the individual works in the
+collection are in the public domain in the United States.  If an
+individual work is in the public domain in the United States and you are
+located in the United States, we do not claim a right to prevent you from
+copying, distributing, performing, displaying or creating derivative
+works based on the work as long as all references to Project Gutenberg
+are removed.  Of course, we hope that you will support the Project
+Gutenberg-tm mission of promoting free access to electronic works by
+freely sharing Project Gutenberg-tm works in compliance with the terms of
+this agreement for keeping the Project Gutenberg-tm name associated with
+the work.  You can easily comply with the terms of this agreement by
+keeping this work in the same format with its attached full Project
+Gutenberg-tm License when you share it without charge with others.
+
+1.D.  The copyright laws of the place where you are located also govern
+what you can do with this work.  Copyright laws in most countries are in
+a constant state of change.  If you are outside the United States, check
+the laws of your country in addition to the terms of this agreement
+before downloading, copying, displaying, performing, distributing or
+creating derivative works based on this work or any other Project
+Gutenberg-tm work.  The Foundation makes no representations concerning
+the copyright status of any work in any country outside the United
+States.
+
+1.E.  Unless you have removed all references to Project Gutenberg:
+
+1.E.1.  The following sentence, with active links to, or other immediate
+access to, the full Project Gutenberg-tm License must appear prominently
+whenever any copy of a Project Gutenberg-tm work (any work on which the
+phrase "Project Gutenberg" appears, or with which the phrase "Project
+Gutenberg" is associated) is accessed, displayed, performed, viewed,
+copied or distributed:
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+1.E.2.  If an individual Project Gutenberg-tm electronic work is derived
+from the public domain (does not contain a notice indicating that it is
+posted with permission of the copyright holder), the work can be copied
+and distributed to anyone in the United States without paying any fees
+or charges.  If you are redistributing or providing access to a work
+with the phrase "Project Gutenberg" associated with or appearing on the
+work, you must comply either with the requirements of paragraphs 1.E.1
+through 1.E.7 or obtain permission for the use of the work and the
+Project Gutenberg-tm trademark as set forth in paragraphs 1.E.8 or
+1.E.9.
+
+1.E.3.  If an individual Project Gutenberg-tm electronic work is posted
+with the permission of the copyright holder, your use and distribution
+must comply with both paragraphs 1.E.1 through 1.E.7 and any additional
+terms imposed by the copyright holder.  Additional terms will be linked
+to the Project Gutenberg-tm License for all works posted with the
+permission of the copyright holder found at the beginning of this work.
+
+1.E.4.  Do not unlink or detach or remove the full Project Gutenberg-tm
+License terms from this work, or any files containing a part of this
+work or any other work associated with Project Gutenberg-tm.
+
+1.E.5.  Do not copy, display, perform, distribute or redistribute this
+electronic work, or any part of this electronic work, without
+prominently displaying the sentence set forth in paragraph 1.E.1 with
+active links or immediate access to the full terms of the Project
+Gutenberg-tm License.
+
+1.E.6.  You may convert to and distribute this work in any binary,
+compressed, marked up, nonproprietary or proprietary form, including any
+word processing or hypertext form.  However, if you provide access to or
+distribute copies of a Project Gutenberg-tm work in a format other than
+"Plain Vanilla ASCII" or other format used in the official version
+posted on the official Project Gutenberg-tm web site (www.gutenberg.org),
+you must, at no additional cost, fee or expense to the user, provide a
+copy, a means of exporting a copy, or a means of obtaining a copy upon
+request, of the work in its original "Plain Vanilla ASCII" or other
+form.  Any alternate format must include the full Project Gutenberg-tm
+License as specified in paragraph 1.E.1.
+
+1.E.7.  Do not charge a fee for access to, viewing, displaying,
+performing, copying or distributing any Project Gutenberg-tm works
+unless you comply with paragraph 1.E.8 or 1.E.9.
+
+1.E.8.  You may charge a reasonable fee for copies of or providing
+access to or distributing Project Gutenberg-tm electronic works provided
+that
+
+- You pay a royalty fee of 20% of the gross profits you derive from
+     the use of Project Gutenberg-tm works calculated using the method
+     you already use to calculate your applicable taxes.  The fee is
+     owed to the owner of the Project Gutenberg-tm trademark, but he
+     has agreed to donate royalties under this paragraph to the
+     Project Gutenberg Literary Archive Foundation.  Royalty payments
+     must be paid within 60 days following each date on which you
+     prepare (or are legally required to prepare) your periodic tax
+     returns.  Royalty payments should be clearly marked as such and
+     sent to the Project Gutenberg Literary Archive Foundation at the
+     address specified in Section 4, "Information about donations to
+     the Project Gutenberg Literary Archive Foundation."
+
+- You provide a full refund of any money paid by a user who notifies
+     you in writing (or by e-mail) within 30 days of receipt that s/he
+     does not agree to the terms of the full Project Gutenberg-tm
+     License.  You must require such a user to return or
+     destroy all copies of the works possessed in a physical medium
+     and discontinue all use of and all access to other copies of
+     Project Gutenberg-tm works.
+
+- You provide, in accordance with paragraph 1.F.3, a full refund of any
+     money paid for a work or a replacement copy, if a defect in the
+     electronic work is discovered and reported to you within 90 days
+     of receipt of the work.
+
+- You comply with all other terms of this agreement for free
+     distribution of Project Gutenberg-tm works.
+
+1.E.9.  If you wish to charge a fee or distribute a Project Gutenberg-tm
+electronic work or group of works on different terms than are set
+forth in this agreement, you must obtain permission in writing from
+both the Project Gutenberg Literary Archive Foundation and Michael
+Hart, the owner of the Project Gutenberg-tm trademark.  Contact the
+Foundation as set forth in Section 3 below.
+
+1.F.
+
+1.F.1.  Project Gutenberg volunteers and employees expend considerable
+effort to identify, do copyright research on, transcribe and proofread
+public domain works in creating the Project Gutenberg-tm
+collection.  Despite these efforts, Project Gutenberg-tm electronic
+works, and the medium on which they may be stored, may contain
+"Defects," such as, but not limited to, incomplete, inaccurate or
+corrupt data, transcription errors, a copyright or other intellectual
+property infringement, a defective or damaged disk or other medium, a
+computer virus, or computer codes that damage or cannot be read by
+your equipment.
+
+1.F.2.  LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except for the "Right
+of Replacement or Refund" described in paragraph 1.F.3, the Project
+Gutenberg Literary Archive Foundation, the owner of the Project
+Gutenberg-tm trademark, and any other party distributing a Project
+Gutenberg-tm electronic work under this agreement, disclaim all
+liability to you for damages, costs and expenses, including legal
+fees.  YOU AGREE THAT YOU HAVE NO REMEDIES FOR NEGLIGENCE, STRICT
+LIABILITY, BREACH OF WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
+PROVIDED IN PARAGRAPH 1.F.3.  YOU AGREE THAT THE FOUNDATION, THE
+TRADEMARK OWNER, AND ANY DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE
+LIABLE TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR
+INCIDENTAL DAMAGES EVEN IF YOU GIVE NOTICE OF THE POSSIBILITY OF SUCH
+DAMAGE.
+
+1.F.3.  LIMITED RIGHT OF REPLACEMENT OR REFUND - If you discover a
+defect in this electronic work within 90 days of receiving it, you can
+receive a refund of the money (if any) you paid for it by sending a
+written explanation to the person you received the work from.  If you
+received the work on a physical medium, you must return the medium with
+your written explanation.  The person or entity that provided you with
+the defective work may elect to provide a replacement copy in lieu of a
+refund.  If you received the work electronically, the person or entity
+providing it to you may choose to give you a second opportunity to
+receive the work electronically in lieu of a refund.  If the second copy
+is also defective, you may demand a refund in writing without further
+opportunities to fix the problem.
+
+1.F.4.  Except for the limited right of replacement or refund set forth
+in paragraph 1.F.3, this work is provided to you 'AS-IS' WITH NO OTHER
+WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
+WARRANTIES OF MERCHANTIBILITY OR FITNESS FOR ANY PURPOSE.
+
+1.F.5.  Some states do not allow disclaimers of certain implied
+warranties or the exclusion or limitation of certain types of damages.
+If any disclaimer or limitation set forth in this agreement violates the
+law of the state applicable to this agreement, the agreement shall be
+interpreted to make the maximum disclaimer or limitation permitted by
+the applicable state law.  The invalidity or unenforceability of any
+provision of this agreement shall not void the remaining provisions.
+
+1.F.6.  INDEMNITY - You agree to indemnify and hold the Foundation, the
+trademark owner, any agent or employee of the Foundation, anyone
+providing copies of Project Gutenberg-tm electronic works in accordance
+with this agreement, and any volunteers associated with the production,
+promotion and distribution of Project Gutenberg-tm electronic works,
+harmless from all liability, costs and expenses, including legal fees,
+that arise directly or indirectly from any of the following which you do
+or cause to occur: (a) distribution of this or any Project Gutenberg-tm
+work, (b) alteration, modification, or additions or deletions to any
+Project Gutenberg-tm work, and (c) any Defect you cause.
+
+
+Section  2.  Information about the Mission of Project Gutenberg-tm
+
+Project Gutenberg-tm is synonymous with the free distribution of
+electronic works in formats readable by the widest variety of computers
+including obsolete, old, middle-aged and new computers.  It exists
+because of the efforts of hundreds of volunteers and donations from
+people in all walks of life.
+
+Volunteers and financial support to provide volunteers with the
+assistance they need are critical to reaching Project Gutenberg-tm's
+goals and ensuring that the Project Gutenberg-tm collection will
+remain freely available for generations to come.  In 2001, the Project
+Gutenberg Literary Archive Foundation was created to provide a secure
+and permanent future for Project Gutenberg-tm and future generations.
+To learn more about the Project Gutenberg Literary Archive Foundation
+and how your efforts and donations can help, see Sections 3 and 4
+and the Foundation web page at https://www.pglaf.org.
+
+
+Section 3.  Information about the Project Gutenberg Literary Archive
+Foundation
+
+The Project Gutenberg Literary Archive Foundation is a non profit
+501(c)(3) educational corporation organized under the laws of the
+state of Mississippi and granted tax exempt status by the Internal
+Revenue Service.  The Foundation's EIN or federal tax identification
+number is 64-6221541.  Its 501(c)(3) letter is posted at
+https://pglaf.org/fundraising.  Contributions to the Project Gutenberg
+Literary Archive Foundation are tax deductible to the full extent
+permitted by U.S. federal laws and your state's laws.
+
+The Foundation's principal office is located at 4557 Melan Dr. S.
+Fairbanks, AK, 99712., but its volunteers and employees are scattered
+throughout numerous locations.  Its business office is located at
+809 North 1500 West, Salt Lake City, UT 84116, (801) 596-1887, email
+business@pglaf.org.  Email contact links and up to date contact
+information can be found at the Foundation's web site and official
+page at https://pglaf.org
+
+For additional contact information:
+     Dr. Gregory B. Newby
+     Chief Executive and Director
+     gbnewby@pglaf.org
+
+
+Section 4.  Information about Donations to the Project Gutenberg
+Literary Archive Foundation
+
+Project Gutenberg-tm depends upon and cannot survive without wide
+spread public support and donations to carry out its mission of
+increasing the number of public domain and licensed works that can be
+freely distributed in machine readable form accessible by the widest
+array of equipment including outdated equipment.  Many small donations
+($1 to $5,000) are particularly important to maintaining tax exempt
+status with the IRS.
+
+The Foundation is committed to complying with the laws regulating
+charities and charitable donations in all 50 states of the United
+States.  Compliance requirements are not uniform and it takes a
+considerable effort, much paperwork and many fees to meet and keep up
+with these requirements.  We do not solicit donations in locations
+where we have not received written confirmation of compliance.  To
+SEND DONATIONS or determine the status of compliance for any
+particular state visit https://pglaf.org
+
+While we cannot and do not solicit contributions from states where we
+have not met the solicitation requirements, we know of no prohibition
+against accepting unsolicited donations from donors in such states who
+approach us with offers to donate.
+
+International donations are gratefully accepted, but we cannot make
+any statements concerning tax treatment of donations received from
+outside the United States.  U.S. laws alone swamp our small staff.
+
+Please check the Project Gutenberg Web pages for current donation
+methods and addresses.  Donations are accepted in a number of other
+ways including including checks, online payments and credit card
+donations.  To donate, please visit: https://pglaf.org/donate
+
+
+Section 5.  General Information About Project Gutenberg-tm electronic
+works.
+
+Professor Michael S. Hart was the originator of the Project Gutenberg-tm
+concept of a library of electronic works that could be freely shared
+with anyone.  For thirty years, he produced and distributed Project
+Gutenberg-tm eBooks with only a loose network of volunteer support.
+
+
+Project Gutenberg-tm eBooks are often created from several printed
+editions, all of which are confirmed as Public Domain in the U.S.
+unless a copyright notice is included.  Thus, we do not necessarily
+keep eBooks in compliance with any particular paper edition.
+
+
+Most people start at our Web site which has the main PG search facility:
+
+     https://www.gutenberg.org
+
+This Web site includes information about Project Gutenberg-tm,
+including how to make donations to the Project Gutenberg Literary
+Archive Foundation, how to help produce our new eBooks, and how to
+subscribe to our email newsletter to hear about new eBooks.
diff --git a/38655-8.zip b/38655-8.zip
new file mode 100644
index 0000000..07c1e7c
--- /dev/null
+++ b/38655-8.zip
diff --git a/38655-h.zip b/38655-h.zip
new file mode 100644
index 0000000..1672a49
--- /dev/null
+++ b/38655-h.zip
diff --git a/38655-h/38655-h.htm b/38655-h/38655-h.htm
new file mode 100644
index 0000000..920db83
--- /dev/null
+++ b/38655-h/38655-h.htm
@@ -0,0 +1,26605 @@
+<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN"
+    "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">
+<html xmlns="http://www.w3.org/1999/xhtml" lang="en">
+
+<head>
+    <meta http-equiv="Content-Type" content="text/html; charset=UTF-8" />
+    <meta http-equiv="Content-Style-Type" content="text/css" />
+    <title>
+      The Project Gutenberg ebook of Principles of Political
+      Economy, Vol. 2, by William Roscher.
+    </title>
+    <style type="text/css">
+
+body {
+    margin-left: 12%;
+    margin-right: 12%;
+}
+
+    h1,h2,h3,h4,h5,h6 {
+    text-align: center; /* all headings centered */
+    clear: both;
+}
+
+p {
+    margin-top: .75em;
+    text-align: justify;
+    margin-bottom: .75em;
+}
+
+.p2 {margin-top: 2em;}
+
+.p4 {margin-top: 4em;}
+
+hr { /* default rule across entire width */
+    margin-top: 2em;
+    margin-bottom: 2em;
+    margin-left: auto;
+    margin-right: auto;
+    clear: both;
+}
+hr.fn { /* rule within footnote */
+    margin-top: .5em;
+    margin-bottom: .5em;
+    margin-left: auto;
+    margin-right: auto;
+    clear: both;
+}
+
+hr.c10 {width: 10%; margin-top: 1em; margin-bottom: 1em}
+
+ table {margin-left: auto;
+  margin-right: auto;
+  border-collapse: collapse;
+  margin-top: 1em;
+  margin-bottom: 2em;}
+
+ .fn {margin-left: 5%; /* table inside footnote */
+  margin-right: 5%;
+  border-collapse: collapse;
+  margin-top: .25em;
+  margin-bottom: .75em;
+  font-size: 90%}
+
+ td.center {vertical-align: top; /* alt, use 'middle', not 'center' */
+  text-align: center;
+  padding-left: 6px;
+  padding-right: 6px;
+  padding-bottom: 0px;
+  padding-top: 0px;}
+
+ td.centerb {vertical-align: bottom; /* align bottom */
+  text-align: center;
+  padding-left: 6px;
+  padding-right: 6px;
+  padding-bottom: 0px;
+  padding-top: 0px;}
+
+ td.left {vertical-align: top;
+  text-align: left;
+  padding-left: 15px;
+  padding-right: 5px;
+  padding-bottom: 0px;
+  padding-top: 0px;}
+
+ td.left0 {vertical-align: top;
+  text-align: left;
+  padding-left: 5px;
+  padding-right: 5px;
+  padding-bottom: 0px;
+  padding-top: 0px;}
+
+ td.left1 {vertical-align: top;
+  text-align: left;
+  text-indent: -.75em;
+  padding-left: 25px;
+  padding-right: 5px;
+  padding-bottom: 0px;
+  padding-top: 0px;}
+
+ td.left2 {vertical-align: top; /* for FN 214-7 */
+  text-align: left;
+  padding-left: 15px;
+  padding-right: 5px;
+  padding-bottom: 0px;
+  padding-top: .75em;}
+
+ td.right3 {vertical-align: top; /* for FN 214-7 */
+  text-align: right;
+  padding-left: 5px;
+  padding-right: 5px;
+  padding-bottom: 0px;
+  padding-top: .75em;}
+
+ td.right {vertical-align: top;
+  text-align: right;
+  padding-left: 5px;
+  padding-right: 5px;
+  padding-bottom: 0px;
+  padding-top: 0px;}
+
+ td.right1 {vertical-align: top; /* For FN 164-5 */
+  text-align: right;
+  padding-left: 2em;
+  padding-right: 5px;
+  padding-bottom: 0px;
+  padding-top: 0px;}
+
+ td.right2 {vertical-align: top; /* For FN 162-3 */
+  text-align: right;
+  padding-left: 5px;
+  padding-right: 2em;
+  padding-bottom: 0px;
+  padding-top: 0px;}
+
+  table.a {text-decoration:none} /* no UL of links inside table*/
+
+.anchorsize {font-size: smaller;}
+
+a:link {text-decoration:none} /* no UL of any links */
+
+a:visited {text-decoration:none}
+
+.hidenum {visibility: hidden;}
+
+.pagenum { /* uncomment the next line for invisible page numbers */
+    /* visibility: hidden; */
+    position: absolute;
+    left: 92%;
+    font-size: 50%;
+    text-align: right;
+    color: #444;
+}
+
+.fnanchor { /* style the [nn] reference in the body text */
+    font-size: 75%;
+    text-decoration: none;
+    vertical-align: 0.5em;}
+
+.footnote {font-size: 90%;
+          text-decoration: none;
+          margin-right: 5%;
+          margin-left: 5%;}
+
+.center   {text-align: center;}
+
+.smcap    {font-variant: small-caps;}
+
+.o        {text-decoration: overline;}
+
+.smaller {font-size: 90%;}
+
+.lessbefore {margin-top: -1em;}
+
+li {margin-left: 1em; /* secondary index lines indented */
+    text-indent:-1em;}
+
+.indent2 {text-indent: 3em; /* for column key FN 247-4 */
+          margin-top: .75em;
+          margin-bottom: .75em;
+          margin-left: 3em;}
+
+/* Image */
+.figcenter   {
+    margin-left: auto;
+    margin-right: auto;
+    text-align: center;
+}
+
+/* Poetry */
+.poem {
+  margin-left: 10%;
+  margin-right: 10%;
+  text-align: left;
+  }
+
+.poem br {display: none;}
+
+.poem span.i2 {
+  display: block;
+  margin-left: 2em;
+  padding-left: 3em;
+  text-indent: -3em;
+  }
+
+.poem span.i2a {
+  display: block;
+  margin-left: 1.5em;
+  padding-left: 3em;
+  text-indent: -3em;
+  }
+
+/* remove bullets from index list */
+.none {list-style-type: none;}
+
+/* Transcriber notes */
+ins {text-decoration:none;
+     border-bottom: thin dotted gray;}
+
+.tnote {border: dashed 1px;
+        margin-left: 10%;
+        margin-right: 10%;
+        padding-bottom: .5em;
+        padding-top: .5em;
+        padding-left: .5em; padding-right: .5em;}
+
+.box   {border: solid 1px; /* for ad at end */
+        margin-left: 20%;
+        margin-right: 20%;
+        padding-bottom: .5em;
+        padding-top: .5em;
+        padding-left: 2em;
+        padding-right: 2em;}
+
+    </style>
+  </head>
+
+<body>
+
+
+<pre>
+
+The Project Gutenberg EBook of Principles of Political Economy, Vol. II, by 
+William Roscher
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+
+Title: Principles of Political Economy, Vol. II
+
+Author: William Roscher
+
+Translator: John J. Lalor
+
+Release Date: January 23, 2012 [EBook #38655]
+
+Language: English
+
+Character set encoding: UTF-8
+
+*** START OF THIS PROJECT GUTENBERG EBOOK PRINCIPLES POLITICAL ECONOMY, VOL II ***
+
+
+
+
+Produced by Frank van Drogen, Carol Brown, Gwen Adams,
+Elizabeth Oscanyan, and the Online Distributed Proofreading
+Team at https://www.pgdp.net.
+
+
+
+
+
+
+</pre>
+
+
+<h3 class="p4">PRINCIPLES</h3>
+
+<h5>OF</h5>
+
+<h1>POLITICAL ECONOMY</h1>
+
+<h5>BY</h5>
+
+<h2>WILLIAM ROSCHER,</h2>
+
+<h5>PROFESSOR OF POLITICAL ECONOMY AT THE UNIVERSITY OF LEIPZIG,
+CORRESPONDING MEMBER OF THE INSTITUTE OF FRANCE, PRIVY COUNSELLOR TO HIS
+MAJESTY, THE KING OF SAXONY.</h5>
+
+<h4>FROM THE THIRTEENTH (1877) GERMAN EDITION.</h4>
+
+<h5>WITH ADDITIONAL CHAPTERS, FURNISHED BY THE AUTHOR, FOR THIS FIRST
+ENGLISH AND AMERICAN EDITION, ON</h5>
+
+<h3>PAPER MONEY, INTERNATIONAL TRADE, AND THE PROTECTIVE SYSTEM;</h3>
+
+<h5>AND A PRELIMINARY</h5>
+
+<h4>ESSAY ON THE HISTORICAL METHOD IN POLITICAL ECONOMY</h4>
+
+<p class="center lessbefore">(From the French)</p>
+
+<h3><span class="smcap">By</span> L. WOLOWSKI,</h3>
+
+<h5>THE WHOLE TRANSLATED BY</h5>
+
+<h3>JOHN J. LALOR, A. M.</h3>
+
+<hr class="c10" />
+
+<h3>VOL. II.</h3>
+
+<hr class="c10" />
+
+<div class="figcenter">
+ <img src="images/logo.jpg"
+ width="139" height="126" alt="Illustration: Printer's Logo"
+ title="Printer's Logo" />
+</div>
+
+<h4>NEW YORK:</h4>
+
+<h3>HENRY HOLT &amp; CO.</h3>
+
+<h4>1878.</h4>
+
+<p class="p4 center">Entered according to Act of Congress, in the year
+eighteen hundred and seventy-eight,<br />
+
+<span class="smcap">By</span> CALLAGHAN &amp; CO.,<br />
+
+In the office of the Librarian of Congress, at Washington, D. C.</p>
+
+<p class="p4 center">DAVID ATWOOD, STEREOTYPER AND PRINTER, MADISON,
+WIS.</p>
+
+<h5 class="p4 center">TO</h5>
+
+<h3>WILLIAM H. GAYLORD, <span class="smcap">Esq.</span>,</h3>
+
+<h4><i>COUNSELOR AT LAW</i>,<br />
+OF CLEVELAND, OHIO,</h4>
+
+<h5>TO WHOSE BROTHERLY CARE IT IS LARGELY DUE THAT I LIVED TO TRANSLATE
+THEM,</h5>
+
+<h4>THESE VOLUMES</h4>
+
+<h3>ARE AFFECTIONATELY INSCRIBED.</h3>
+
+<h3 class="p4">BOOK III.</h3>
+
+<h3>DISTRIBUTION OF GOODS.</h3>
+
+<h3 class="p4">CHAPTER 1.</h3>
+
+<h4>INCOME IN GENERAL.</h4>
+
+<hr class="c10" />
+
+<p class="p2 center"><a name="S144"></a>SECTION CXLIV.</p>
+
+<p class="center smaller">RECEIPTS.&mdash;INCOME.&mdash;PRODUCE.</p>
+
+<p>The idea covered by the word receipts (<i>Einnahme</i>) embraces all the
+new additions successively made to one's resources within a given period of
+time.<a name="fnanchor_144-1" id="fnanchor_144-1"></a><a href=
+"#footnote_144-1" class="fnanchor">[144-1]</a> Income, on the
+other hand, embraces only such receipts as are the results of economic
+activity. (See §§ 2, 11.) Produce (<i>Ertrag</i>, <i>produit</i>) is
+income, but not from the point of view of the person or <i>subject</i>
+engaged in a business of any kind, but from that of the business itself, or
+of the <i>object</i> with which the business is concerned, and on which it,
+so to speak, acts.</p>
+
+<p>Income is made up of products, the results of labor and of the
+employment and use of resources. These products, the producer may either
+consume himself or exchange against other products, to satisfy a more
+urgent want.<a name="fnanchor_144-2" id="fnanchor_144-2"></a><a href=
+"#footnote_144-2" class="fnanchor">[144-2]</a> Hence, spite
+<span class='pagenum'>[Pg 2]</span> of the frequency with which we hear
+such expressions as these: "the laborer eats the bread of his employer;"
+"the capitalist lives by the sweat of the brow of labor;" or, again, a
+manufacturer or business man "lives from the income of his customers,"<a
+name="fnanchor_144-3" id="fnanchor_144-3"></a><a href="#footnote_144-3"
+class="fnanchor">[144-3]</a> they are entirely unwarranted. No man who
+manages his own affairs well, or those of a household, lives on the capital
+or income of another man; but every one lives on his own income, by the
+things he has himself produced; although with every further development of
+the division of labor, it becomes rarer that any one puts the finishing
+stroke to his own products, and can satisfy himself by their immediate
+consumption alone. Hence we should call nothing diverted or derived income
+except that which has been gratuitously obtained from another.<a
+name="fnanchor_144-4" id="fnanchor_144-4"></a><a href="#footnote_144-4"
+class="fnanchor">[144-4]</a></p>
+
+ <p class="footnote"> <a name="footnote_144-1" id="footnote_144-1"></a>
+ <a href="#fnanchor_144-1">[144-1]</a>
+ Including of course, gifts, inheritances, lottery prizes, etc.</p>
+
+ <p class="footnote"> <a name="footnote_144-2" id="footnote_144-2"></a>
+ <a href="#fnanchor_144-2">[144-2]</a> Thus the original income of the
+ peasant consists in his corn, of the miller in his flour, of the baker in
+ his bread, of the shoemaker in his shoes. The money which circulates among
+ all these and the purchaser, is only the means of exchanging that part of
+ their products which they cannot themselves use, for other goods. Money,
+ on the other hand, was the original income of the producers of the gold or
+ silver it contains. Compare <i>Mirabeau</i>, Philosophie rurale, 1763, ch.
+ 3. <i>Adam Smith</i>, II, ch. 2. But especially, see <i>J. B. Say</i>,
+ Traité II, ch. 1, 5; and <i>Sismondi</i>, N. P., I, 90, 376, in which it
+ is correctly said, that the quality which constitutes anything capital or
+ income does not inhere in the thing itself, but depends on the person.
+ Compare, however, I, 148; <i>Hermann</i>, Staatsw. Untersuch. 297 ff., 33
+ seq.</p>
+
+ <p class="footnote"> <a name="footnote_144-3" id="footnote_144-3"></a>
+ <a href="#fnanchor_144-3">[144-3]</a>
+ A fundamental thought in <i>St. Chamans</i>, Du Système d'Impôt, 1820.
+ Nouvel Essai sur la Richesse des Nations, 1824.</p>
+
+ <p class="footnote"> <a name="footnote_144-4" id="footnote_144-4"></a>
+ <a href="#fnanchor_144-4">[144-4]</a>
+ Thus, for instance, the support given by the head of a family to the
+ members thereof; also gifts, alms, thefts. Even <i>A. L. Schlözer</i>, St.
+ A., II, 487, will allow that no one "eats the bread of another," but the
+ person who has received it from the latter by way of favor and for
+ nothing. In the case of a rented house, there is only an exchange of
+ objects of income. The person to whom it is rented gives up a portion of
+ his, and the renting party the use of his house. Similarly, in the case of
+ personal services. Writers who maintain that only certain kinds of useful
+ labor are productive, must of course extend the limits of diverted income
+ much farther. See <i>Lotz</i>, Handbuch, III, § 133; <i>Rau</i>, Lehrbuch,
+ I, §§ 248, 251. <i>Cantillon</i> thinks that if no landowner spent more
+ than his income, it would be scarcely possible for any one else to grow
+ rich. (Nature du Commerce, 75.) According to <i>Stein</i>, Lehrbuch, 347,
+ every one gets his income from the income of other people!</p>
+
+<p class="p2 center"><a name="S145"></a>SECTION CXLV.</p>
+
+<p class="center smaller">INCOME.&mdash;GROSS, FREE AND NET.</p>
+
+<p>In all <i>income</i>, we may distinguish a <i>gross</i> amount, a
+<i>net</i> amount and a <i>free</i> amount.<a name="fnanchor_145-1"
+id="fnanchor_145-1"></a><a href="#footnote_145-1" class=
+"fnanchor">[145-1]</a> The gross income of a year, for <span
+class='pagenum'>[Pg 3]</span> instance, consists of all the goods which
+have been newly produced within that time. The net<a name="fnanchor_145-2"
+id="fnanchor_145-2"></a><a href="#footnote_145-2" class=
+"fnanchor">[145-2]</a> income is that portion of the former which remains
+after deducting the cost of production (§ 106), and which may therefore be
+consumed without diminishing the original resources. Only the new values
+incorporated in the new commodities make up the net income. Evidently, a
+great portion of what is considered in one business the cost of production
+is net income in a great many others; as for instance, what the person
+engaged in one enterprise in production has paid out in wages and interest
+on capital. By means of this outlay, a portion of his circulating capital
+is drawn by others as income, and, on the other hand, a portion of their
+original income is turned into a portion of his circulating capital.<a
+name="fnanchor_145-3" id="fnanchor_145-3"></a><a href="#footnote_145-3"
+class="fnanchor">[145-3]</a> <i>Free</i> income, I call that portion of net
+income which remains available to the producer after his indispensable
+wants have been satisfied.</p>
+
+<p>An accurate kind of book-keeping which keeps these three elements of
+income separate is more generally practicable<a name= "fnanchor_TN1" id=
+"fnanchor_TN1"></a><a href= "#footnote_TN1" class= "fnanchor">[TN 1]</a> as
+civilization advances. We might call it the <i>economic balance</i>. Where
+commerce is very thriving it is even customary to provide by law that those
+classes who need it especially should have this species of book-keeping.
+People in a lower stage of cultivation, with their poetical nature, are
+unfriendly to such calculations.<a name= "fnanchor_145-4" id=
+"fnanchor_145-4"></a><a href= "#footnote_145-4" class=
+"fnanchor">[145-4]</a> <a name= "fnanchor_145-5" id=
+"fnanchor_145-5"></a><a href= "#footnote_145-5" class=
+"fnanchor">[145-5]</a> And where natural-economy (<i>Naturalwirtschaft</i>)
+<span class='pagenum'>[Pg 4]</span> or barter prevails, a book-keeping of
+this kind of any accuracy is scarcely practicable. The ratio which net
+income bears to gross income is a very important element to enable us to
+judge of the advantageousness of any method of production. If every
+producer should succeed in consequence of keeping his books in this manner,
+in determining exactly the cost to him of each of his products, this would
+be an economic <span class='pagenum'>[Pg 5]</span> progress similar to that
+of general spread of good chemical knowledge in the arts. On the amount of
+<i>free</i> income, on the other hand, depends all the higher enjoyment of
+life, all rational beneficence, and the progressive enrichment of
+mankind.<a name="fnanchor_145-6" id= "fnanchor_145-6"></a><a href=
+"#footnote_145-6" class= "fnanchor">[145-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_145-1" id="footnote_145-1"></a>
+ <a href="#fnanchor_145-1">[145-1]</a>
+ Similarly in <i>Sismondi</i>, N. P., II, 330, and <i>Rau</i>, Lehrbuch, I,
+ § 71, a.</p>
+
+ <p class="footnote"> <a name="footnote_145-2" id="footnote_145-2"></a>
+ <a href="#fnanchor_145-2">[145-2]</a>
+ Called by <i>Hermann</i>, loc. cit., simply income.</p>
+
+ <p class="footnote"> <a name="footnote_145-3" id="footnote_145-3"></a>
+ <a href="#fnanchor_145-3">[145-3]</a>
+ This truth <i>J. B. Say</i> has exaggerated to the extent of claiming that
+ gross and net income are one and the same so far as entire nations are
+ concerned. (Traité, II, ch. 5; Cours pratique, III, 14; IV, 74.) But the
+ gross profit of the entire production of any one year is much greater than
+ the simultaneous net income of all the individuals engaged in it. This is
+ accounted for by the fact that in such production an amount of circulating
+ capital is invested which was saved from the net profit of previous
+ economic times. Compare <i>Storch</i>, Nationaleinkommen, 90 ff.
+ <i>Kermann</i>, loc. cit., 323 ff.</p>
+
+ <p class="footnote"> <a name="footnote_145-4" id="footnote_145-4"></a>
+ <a href="#fnanchor_145-4">[145-4]</a>
+ In the East, a valuation by one's self of his property is considered a
+ guilty kind of pride, usually punished by the loss of one's possessions.
+ (<i>Burckhardt</i>, Travels in Arabia, I, 72 ff.) See <i>Samuel</i>, 24,
+ on the census made by David. The Egyptians, however, as may be inferred
+ from their monuments, must have very early and very extensively felt the
+ want of some kind of book-keeping such as we have mentioned. A very
+ accurate sort of book-keeping among the more highly<a name= "fnanchor_TN2"
+ id= "fnanchor_TN2"></a><a href= "#footnote_TN2" class= "fnanchor">[TN
+ 2]</a> cultured Romans, with a daily memorandum and a monthly book with
+ entries from the former (<i>adversaria-tabula expensi et accepti</i>).
+ Compare <i>Cicero</i>, pro Roscio, com. 2, 3; pro Cluent, 30;
+ <i>Verr.</i>, II, 1, 23, 36. The Latin <i>putare</i>, from <i>putus</i>,
+ pure, means: to make an account clear, and therefore corresponds to the
+ American provincialism, "I reckon," i. e., I believe; and is a remarkable
+ proof of a rigid method of keeping accounts. The Italian, or so-called
+ double-entry method of book-keeping, which gives the most accurate
+ information on the profit from every separate branch of business, became
+ usual among the nations of modern Europe whose civilization was the first
+ to ripen, about the end of the fifteenth century. Its invention is
+ ascribed to the monk Luca Paciolo di Borgo S. Sepolcro.</p>
+
+ <p class="footnote">In England, this kind of book-keeping is very
+ gradually coming into use even among farmers, while <i>Simond</i>, Voyage
+ en Angleterre, 2 ed., II, 64, <i>Dunoyer</i>, Liberté du Travail, VIII, 5,
+ say, "it would in France be considered as ridiculous as the book-keeping
+ of an apple vendor." In Germany, there have been for some time past,
+ manufactories of commercial books. Besides, the remarkable difference
+ brought out by the income tax in England between the exact statements made
+ by large manufacturers, etc., and by those engaged in industry on a medium
+ or small scale, bears evidence of the better way in which the former keep
+ their accounts, the cause and effect of their better business in general.
+ Compare <i>Knies</i>, in the Tübing. Zeitschr., 1854, 513. On the best
+ mode of determining income, see <i>Cazaux</i>, Eléments d'Économie
+ publique et privée, Livre, II. It is especially necessary to keep an
+ account of the increase or diminution, even when accidental, of the value
+ of the fixed capital employed.</p>
+
+ <p class="footnote"> <a name="footnote_145-5" id="footnote_145-5"></a>
+ <a href="#fnanchor_145-5">[145-5]</a>
+ The Code de Commerce, I, art. 8, requires that every merchant should keep
+ a journal, paged and approved by the authorities, showing the receipts and
+ disbursements of each day, on whatever account, and also the monthly
+ expenditures of his family. Besides, he is required to make a yearly
+ inventory of his debits and credits, subscribe to it and preserve it. That
+ such books were excellent judicial evidence may be shown by Italian
+ statutes of the fourteenth century. (<i>Martens</i>, Ursprung des
+ Wechschrechts, 23.) Those of Germany even in 1449. (<i>Hirsch</i>,
+ Danziger Handelsgeschichte, 232.)</p>
+
+ <p class="footnote"> <a name="footnote_145-6" id="footnote_145-6"></a>
+ <a href="#fnanchor_145-6">[145-6]</a>
+ Importance of the so-called "transferring to credit," where a business man
+ considers his business as an independent entity and as distinct from
+ himself.</p>
+
+<p class="p2 center"><a name="S146"></a>SECTION CXLVI.</p>
+
+<p class="center smaller">NATIONAL INCOME.&mdash;ITS STATISTICAL
+IMPORTANCE.</p>
+
+<p>Among the most important<a name="fnanchor_146-1" id=
+"fnanchor_146-1"></a><a href="#footnote_146-1" class="fnanchor">[146-1]</a>
+but also the most difficult objects of statistics, that book-keeping of
+nations, is national income. In estimating it, we may take our starting
+point from the goods which are elements of income, or from the persons who
+receive them as income.<a name="fnanchor_146-2" id="fnanchor_146-2"></a><a
+href= "#footnote_146-2" class="fnanchor">[146-2]</a></p>
+
+<p>In the former case the gross national income consists:</p>
+
+<p>A. Of the raw material newly obtained in the country.</p>
+
+<p>B. Of imports from foreign countries, including that which is secured by
+piracy, as war-booty, contributions, etc.</p>
+
+<p>C. The increase of values which industry<a name="fnanchor_146-3"
+id="fnanchor_146-3"></a><a href="#footnote_146-3" class=
+"fnanchor">[146-3]</a> and commerce <span class='pagenum'>[Pg 6]</span> add
+to the first two classes up to the time of their final consumption.</p>
+
+<p>D. Services in the narrower sense and the produce (<i>Nutzungen</i>) of
+capital in use.</p>
+
+<p>All these several elements, estimated at their average price in money,
+which supposes that all purchases, especially those under the head D, are
+made voluntarily<a name="fnanchor_146-4" id="fnanchor_146-4"></a><a
+href="#footnote_146-4" class="fnanchor">[146-4]</a> and at their
+natural price.</p>
+
+<p>To find the national net income, we must deduct the following items:</p>
+
+<p>A. All the material employed in production which yields no immediate
+satisfaction to any personal want.<a name="fnanchor_146-5" id=
+"fnanchor_146-5"></a><a href="#footnote_146-5" class=
+"fnanchor">[146-5]</a></p>
+
+<p>B. The exports which pay for the imports.</p>
+
+<p>C. The wear and tear of productive capital and capital in use.</p>
+
+<p>In the second case the net national income is to be calculated from the
+following items:</p>
+
+<p>A. From the net income of all independent private businesses etc.<a
+name="fnanchor_146-6" id="fnanchor_146-6"></a><a href="#footnote_146-6"
+class="fnanchor">[146-6]</a></p>
+
+<p>B. From the net income of the state, of municipalities, <span
+class='pagenum'>[Pg 7]</span> corporations and institutions, derived from
+their own resources.</p>
+
+<p>C. Under the former heads must be taken into the account such parts of
+property as have been immediately consumed and enjoyed.<a name=
+"fnanchor_146-7" id="fnanchor_146-7"></a><a href="#footnote_146-7"
+class="fnanchor">[146-7]</a></p>
+
+<p>D. Interest on debt must be added only on the side of the creditor, and
+deducted from the income of the debtor; otherwise, <i>error dupli</i>. This
+does not apply to taxes or church dues because the subjects of a good state
+and members of a good church purchase thereby things which are really new
+and of at least equal value to the outlay. Besides, in both instances, it
+is necessary to calculate the number of men who live from the national
+income, the average amount of their indispensable wants, and the average
+price in money of the same, in order to determine the <i>free</i> national
+income by deducting the sum total of these average wants, estimated at this
+average price.<a name="fnanchor_146-8" id="fnanchor_146-8"></a><a
+href="#footnote_146-8" class="fnanchor">[146-8]</a> <a name=
+"fnanchor_146-9" id="fnanchor_146-9"></a><a href="#footnote_146-9"
+class="fnanchor">[146-9]</a></p>
+
+ <p class="footnote"> <a name="footnote_146-1" id="footnote_146-1"></a>
+ <a href="#fnanchor_146-1">[146-1]</a>
+ Not only to compare the happiness and power of different nations with one
+ another, but also for purposes of taxation, the profitableness and
+ innocuousness<a name= "fnanchor_TN3" id= "fnanchor_TN3"></a><a href=
+ "#footnote_TN3" class= "fnanchor">[TN 3]</a> of which suppose the most
+ perfect adaptation to the income of the whole people.</p>
+
+ <p class="footnote"> <a name="footnote_146-2" id="footnote_146-2"></a>
+ <a href="#fnanchor_146-2">[146-2]</a>
+ The former, in <i>Rau</i>, Lehrbuch, I, § 247; the latter in
+ <i>Hermann</i>, 308 ff. The former mode of calculation gives us a means of
+ judging of the comfort of the people, their control of natural forces,
+ etc.; the second, of the relation of classes among the people. (<i>v.
+ Mangoldt</i>, Grundriss, 99. V. W. L., 316 ff.) Each member of the nation
+ produces his income only in the whole of the nation's economy. Hence
+ <i>Held</i>, Die Einkommensteuer, 1872, 70, 77, would, but indeed only
+ under very abstract fictions, construct private income from the national,
+ and not <i>vice versa</i>.</p>
+
+ <p class="footnote"> <a name="footnote_146-3" id="footnote_146-3"></a>
+ <a href="#fnanchor_146-3">[146-3]</a>
+ On the average degree of this increase of values in different industries,
+ see <i>Chaptal</i>, De l'Industrie française, II, passim. <i>Bolz</i>,
+ Gewerbekalender für, 1833, 111. No such scale can be lastingly valid,
+ because, for instance, almost all technic progress decreases the
+ appreciation of values through industry, and every advance made by luxury
+ raises the claims to refined quality etc. See <i>Hildebrand</i>,
+ Jahrbücher für Nat-Oek., 1863, 248 ff.</p>
+
+ <p class="footnote"> <a name="footnote_146-4" id="footnote_146-4"></a>
+ <a href="#fnanchor_146-4">[146-4]</a>
+ Many items in Class D evade all calculation. Thus, for instance, the
+ numberless cases of personal services which are enjoyed only by the doer
+ himself; also the greater number of products (<i>Nutzungen</i>=usufruct)
+ of capital in use for the consumption of the owner himself. (Latent
+ income.) Only, it may be, in the case of dwelling houses, equipages, etc.,
+ that the consumption by use can be estimated in accordance with the
+ analogy of similarly rented goods.</p>
+
+ <p class="footnote"> <a name="footnote_146-5" id="footnote_146-5"></a>
+ <a href="#fnanchor_146-5">[146-5]</a>
+ The principal materials consumed in manufactures are of course not to be
+ deducted here, because the increase in their value was taken into account
+ above.</p>
+
+ <p class="footnote"> <a name="footnote_146-6" id="footnote_146-6"></a>
+ <a href="#fnanchor_146-6">[146-6]</a>
+ When an artist who earns $10,000 per annum appears in a country, the gross
+ national income increases in a way similar to that in which it increases
+ when a new commodity is found which would have a yearly increase of value
+ equal to $10,000 over and above that of the raw material. Cost of
+ production in the case of such a virtuoso is scarcely to be alluded to.
+ Nearly his entire income, with the exception of his traveling expenses,
+ etc., is net, and the greater portion of it <i>free</i>. An income tax
+ would affect his hearers after as it did before, and in his income, find a
+ completely new object. <i>Per contra</i>, see Saggi economici, I, 176
+ f.</p>
+
+ <p class="footnote"> <a name="footnote_146-7" id="footnote_146-7"></a>
+ <a href="#fnanchor_146-7">[146-7]</a>
+ For purposes of taxation, where a relative valuation is more the question
+ than an absolute one, it would be sufficient to assume that every
+ household consumed clothing, utensils, etc., in proportion to the rest of
+ their income. Hence, these items might, unhesitatingly, be omitted
+ altogether.</p>
+
+ <p class="footnote"> <a name="footnote_146-8" id="footnote_146-8"></a>
+ <a href="#fnanchor_146-8">[146-8]</a>
+ Mathematically demonstrated by <i>Fuoco</i>, Saggi economici, II, 102
+ ff.</p>
+
+ <p class="footnote"> <a name="footnote_146-9" id="footnote_146-9"></a>
+ <a href="#fnanchor_146-9">[146-9]</a>
+ The gross income of British Europe is estimated by <i>Pebrer</i>, Histoire
+ financière et statistique générale de l'Empire Br., 1834, II, 90, at
+ £514,823,059, viz.: agriculture, £246,600,000; mining, 21,400,000;
+ manufactures, after deduction made of the raw material, £148,050,000;
+ internal and coast trade, £51,975,060; foreign commerce and navigation,
+ £34,398,059; banking, £4,500,000; interest from foreign countries,
+ £4,500,000. By <i>Moreau de Jonnés</i>, Statist de la Gr. Br., 1837, I,
+ 312, it is estimated at 18,000,000,000 francs, from which, however, the
+ raw material used in industry is not deducted. The net income of Great
+ Britain was estimated by Pitt, in 1799, at £135,000,000, of which
+ £25,000,000 were received by landowners for rent, £25,000,000 by farmers,
+ £5,000,000 were tithes, £3,000,000 from forests, canals, and mines,
+ £6,000,000 from houses, £15,000,000 from state funds, £12,000,000 from
+ foreign commerce, £28,000,000 from inland commerce and manufactures,
+ £3,000,000 from fine arts, £80,000,000 from Scotland, £5,000,000 from
+ foreign countries. (<i>Gentz</i>, Histor. Journ., 1799, I, 183 ff.)
+ <i>Lowe</i>, England in its present Situation, 1822, p. 246, speaks of
+ 255,000,000. About 1860, the incomes subject to taxation alone, that is,
+ all above £100, amounted to 335,000,000. The remainder was certainly worth
+ one-half of this. (Statist. Journ., 1864, 121.) <i>Baxter</i>, in 1867,
+ assumed it to be £825,000,000. Compare <i>L. Levi</i>, on Taxation, 6.</p>
+
+ <p class="footnote">In France, about forty years ago, according to
+ Chaptal, Doudeauville, Balbi and others, about 6,500,000,000 francs gross
+ national income could be counted on. <i>Schnitzler</i> speaks of
+ 7,000,000,000 francs (Creation de la Richesse en France, 1842, I, 392),
+ after deduction made of the raw material of manufacture. According to
+ <i>Wolowski</i>, Statistique de la Fr., 1847, it was more than
+ 12,000,000,000 francs. <i>M. Chevalier</i>, Revue des deux Mondes, March
+ 15, 1848, has it 10,000,000,000 at most. In these four estimates, only
+ material products are taken into account. <i>Ch. Dupin</i> thinks the
+ income per capita was, in 1730, = 108 francs; in 1780, = 169; in 1830, =
+ 269. <i>Cazeaux</i>, Eléments, 163, estimated the net national income, in
+ 1825, at 5,000,000,000 francs; <i>Cochut</i>, in 1861, at 16,000,000,000.
+ (Revue des deux Mondes, XXXVII, 703.)</p>
+
+ <p class="footnote">In Spain, <i>Borrego</i>, Nationalreichthum, etc.
+ Spaniens, 1834, 33, estimated the income from agriculture at 2,284,000,000
+ francs; from industry, etc., 361,000,000; commerce, 124,000,000; from
+ houses, 186,000,000; canals, streets etc., 8,500,000; personal services,
+ 75,000,000; money in circulation (probably loaned capital),
+ 85,000,000.</p>
+
+ <p class="footnote">In the United States, in 1840, the national income was
+ estimated at over $1,063,000,000; from agriculture, over $654,000,000;
+ from manufactures, nearly $240,000,000; commerce, almost $80,000,000;
+ mining, over $42,000,000; from lumber (<i>Wäldern</i>), almost
+ $17,000,000; and from the fisheries, almost $12,000,000. The per capita
+ amount of income was $62. It was largest in Rhode Island&mdash;$110; in
+ Massachusetts it was $103; in Louisiana, $99; and in Iowa, smallest, $27;
+ in Michigan, it was $33. Compare <i>Tucker</i>, Progress of the United
+ States, 195 ff. The census of 1860 assumes the national wealth, slaves not
+ included, at $14,183,000,000, that is $451 per capita, with a per capita
+ annual income of $112. According to <i>Czörnig</i>, the gross income of
+ Austria, from agriculture, the chase and fisheries, in 1861, was
+ 2,119,000,000 florins; from mining, 41,000,000; from the industries,
+ 1,200,000,000. In Prussia, the net national income, not including the
+ revenue from state property, nor the income of the royal household, seems,
+ from the returns of the income and <i>class</i> tax, to have been about
+ 2,458,000,000 thalers, in 1874. <i>Engel</i>, Preuss. Statist. Ztschr.,
+ 1875, 133. The majority of the above estimates are obviously
+ unreliable.</p>
+
+<p class="p2 center"><a name="S147"></a>SECTION CXLVII.<span
+class='pagenum'>[Pg 8]</span></p>
+
+<p class="center smaller">NATIONAL INCOME.&mdash;ITS STATISTICAL
+IMPORTANCE.<br />
+(CONTINUED.)</p>
+
+<p>The question frequently discussed, whether it is more advantageous to
+increase the gross income or the net income<a name="fnanchor_147-1"
+id="fnanchor_147-1"></a><a href="#footnote_147-1" class=
+"fnanchor">[147-1]</a> of <span class='pagenum'>[Pg 9]</span> a people, may
+be readily answered with the assistance of our tripartite division. Since
+economic production has no other object than the satisfaction of human
+wants, the mere increase of the gross income of a people is a matter of
+indifference. An increase of the net income puts a people in a condition to
+increase either their numbers or their enjoyments. (See §§ 163 and 239.)
+The most desirable condition is where both these results are produced. It
+is fortunate for a people when the <i>free</i> income of the nation
+increases by reason of the absolute or relative decrease of the cost of
+production, which adds nothing to enjoyment. But it is politically and
+morally to be lamented when it increases at the expense of the satisfaction
+of man's necessary wants, especially if the majority of the people deny
+themselves in this respect to produce that end. Sir Thomas More called the
+sheep of his time, to make place for which so many farm houses were razed
+to the ground, ravenous beasts, which devoured men and laid waste city and
+country.<a name="fnanchor_147-2" id="fnanchor_147-2"></a><a
+href="#footnote_147-2" class="fnanchor">[147-2]</a></p>
+
+ <p class="footnote"> <a name="footnote_147-1" id="footnote_147-1"></a>
+ <a href="#fnanchor_147-1">[147-1]</a>
+ The greater number of writers, at bottom, understand by this question only
+ whether greater efforts should be made to increase the wages of the lower
+ classes or the rent and rate of interest on capital paid to the higher.
+ (<i>Schmoller</i>, in the Tüb. Zeitschrift, 1863, 22.)</p>
+
+ <p class="footnote"> <a name="footnote_147-2" id="footnote_147-2"></a>
+ <a href="#fnanchor_147-2">[147-2]</a>
+ The difference between gross and net income was introduced into the
+ science principally by the Physiocrates. <i>Vauban</i> (1707) had no
+ conception of it, and thirty years later a French minister, in his
+ instructions concerning the levy of the <i>vingtièmes</i>, dimly seeing
+ that the aggregate amount of the harvest was not clear gain, ordered, to
+ obtain the latter, that the cost of reaping and threshing should be
+ deducted. (<i>Dupont</i>, Correspondence of <i>J. B. Say</i>, 404, éd.
+ Daire.) By <i>produit net</i>, <i>Quesnay</i> means the excess of original
+ production over its cost, considered from the personal point of view of
+ the individual landowner. This excess, it is claimed, can alone increase
+ the national wealth and alone support the "steril" class.</p>
+
+ <p class="footnote">The political and military bearing of this very
+ clearly recognized. (102 ff., éd Daire.) Hence <i>Quesnay</i>, favors it
+ in every way; by large farming instead of small, by stock raising on a
+ large scale, supplanting home labor by cheaper foreign labor, by machinery
+ and the employment of manual labor, etc.; 91 ff., 200 ff., 274 ff. The
+ elder <i>Mirabeau</i> teaches even that the goodness of a government or of
+ a constitution, and even national morality may be inferred from the amount
+ of the <i>produit net</i>. (Ph. rurale, ch. 5.) <i>Stewart</i>,
+ Principles, I, ch. 20. <i>Adam Smith</i> gives greater prominence to the
+ gross income, and grades the principal branches of national labor
+ according as they increase the gross product of the nation's economy. (II,
+ chs. 1, 5.) Similarly, <i>J. B. Say</i>, Traité, ch. 8, § 3;
+ <i>Lauderdale</i>, Inquiry, 142.</p>
+
+ <p class="footnote"><i>Ricardo</i> thoroughly reacts against this view,
+ and considers it a matter of indifference whether a net product (interest
+ on capital and rent) of a given amount be obtained by the labor of five or
+ seven million other men, so long as only five million can live on it.
+ (Principles, ch. 26.) Similarly <i>Ganilh</i>, Systèmes, I, 218 ff.;
+ Théorie, II, 96. Controverted by <i>Malthus</i>, Principles, II, § 6.
+ <i>Buquoy</i>, Theorie der Nat. Wirthsch., 1815, 310 ff. <i>Sismondi</i>
+ has ridiculed this predilection for the net product which in
+ <i>Ricardo</i> corresponds with what the Germans call free
+ product (<i>freien Ertrage</i>), and which, contrary to Ricardo's own
+ opinion, he calls Ricardo's ideal, saying that according to him, nothing
+ more was to be desired but that "the king should remain alone on the
+ island and, by turning a crank forever, do all the work of England through
+ the instrumentality of automata." (N. P., II, 330 ff.) An entire people
+ should value only gross product. (I, 183.) In his Etudes, Essai, II: Du
+ Revenu Social, <i>Sismondi</i> distinguishes as elements of the gross
+ national income: a, pure capital, the return of outlay; b, that which is
+ at once both capital and income, and serves as family support (capital as
+ a necessarily remaining supply, income as the product of the preceding
+ year); c, net income, the excess of production over consumption.</p>
+
+ <p class="footnote">The Socialists of our day would prefer to see the
+ whole net income of a people employed in the satisfaction of the necessary
+ wants of an ever increasing population. By this procedure, as a natural
+ consequence, we should witness first the curtailing of the taxing power,
+ of the funds for the satisfaction of the more refined wants and of the
+ saving of capital, nor would it be long before even the existing
+ generation would experience the bitterness of this "living from hand to
+ mouth." After a time, even the possibility of progress and even of mere
+ increase of population would cease.</p>
+
+ <p class="footnote"><i>Hermann</i>, Staatsw. Untersuch., 297 ff., has
+ better than almost any one else developed the theory of income, and he
+ lays most stress on the satisfaction of wants as the chief aim of public
+ economy. <i>Kröncke</i>, Das Steuerwesen, 1804, 381 ff.; Grundsätze einer
+ gerechten Besteuerung, 1819, 93 f., may be considered the predecessor who
+ prepared the way for him. Compare the profound work of <i>Bernhardi</i>,
+ Versuch einer Kritik der Gründe die für grosses und kleines Grundeigenthum
+ angeführt werden, St. Petersburg, 1848. Many controversies on this subject
+ may be closed by a more accurate understanding as to terms. Thus, for
+ instance, when <i>Rau</i>, Handbuch, embraces in the cost of production
+ the necessary maintenance of material-workmen, and of those engaged in the
+ labor of commerce; or when <i>Jacob</i>, Staatswissenschaft, § 496, and
+ <i>Storch</i>, Einkommen, 116 ff., even the necessary support of every
+ class useful to society, their valuation of the gross national income is
+ in only apparent conflict with our doctrine on the subject.</p>
+
+<p class="p2 center"><a name="S148"></a>SECTION CXLVIII.<span
+class='pagenum'>[Pg 10]</span></p>
+
+<p class="center smaller">THE TWO PHASES OF INCOME.</p>
+
+<p>In every income which has anything to do with other incomes, it is
+necessary to distinguish its immediately productive side, and its profit or
+acquisition side. It is necessary, in the first place, that all the
+products made by private parties should, so to speak, be put into the
+common treasury of the national economy, and that each should thence draw
+his own private revenue. Justice requires that there should be a perfect
+correlation between the two; that each should enjoy precisely the quota of
+the national income to the production of <span class='pagenum'>[Pg
+11]</span> which his person or his property contributed. A just
+appreciation of the relative productive power of the divers branches of
+labor constitutes one of the chief bulwarks against the inroads of
+destructive socialistic theories. The person who calls a good doctor or a
+good judge unproductive should, to be consistent, call those who by their
+greater intelligence are fitted to superintend agricultural and industrial
+enterprises unproductive, also, as is done by the coarser socialists with
+their apotheosis of mere manual labor. Unfortunately, such a settlement as
+is above contemplated among the different factors of production, whose
+owners are desirous to divide the common product among them, is possible
+only where the factors of production are either of the same kind, or can be
+reduced to a common denominator.<a name="fnanchor_148-1" id=
+"fnanchor_148-1"></a><a href="#footnote_148-1" class="fnanchor">[148-1]</a>
+But if justice pure and <span class='pagenum'>[Pg 12]</span> simple were
+meted out, no man could subsist. Love or charity must supplement justice in
+order to assist those (and especially such as without any fault of theirs)
+who are not able to produce anything, or enough to supply those wants, for
+instance, children and the poor.</p>
+
+<p>As the net national income, following the three great factors of all
+economic production, is divided into three great branches, rent, wages and
+interest on capital, the net income from any private business may be
+reduced to one or more of these branches.<a name="fnanchor_148-2"
+id="fnanchor_148-2"></a><a href="#footnote_148-2" class=
+"fnanchor">[148-2]</a> The three great branches of income may be considered
+with advantage from a great many different points of view. We may inquire
+in the case of each of them: concerning its absolute magnitude, its
+relation to the aggregate national income, to the magnitude of the factor
+of production, of which it constitutes the remuneration; by what number of
+men it is shared, and what number of wants it satisfies.<a
+name="fnanchor_148-3" id="fnanchor_148-3"></a><a href="#footnote_148-3"
+class="fnanchor">[148-3]</a> Lastly, the difference between the amount
+stipulated for, and <span class='pagenum'>[Pg 13]</span> the original
+amount of both rent and wages, as well as the interest of capital, is of
+special importance. The former consists in the price paid by the borrower
+for the use of the factor of production to the owner; the latter in the
+immediate products which the employment of the same productive power brings
+on one's own account. Evidently, the original amount is, in the long run,
+the chief element in the determination of the stipulated amount. While the
+former depends more on the deeper and more durably effective elements of
+price, especially the cost of production, the value in use and the paying
+capacity of purchasers; the latter is conditioned more by the superficial
+variations of supply and demand, and even by custom. For our purposes, the
+former is by far the more important, but, at the same time, by far the more
+difficult to perceive.</p>
+
+ <p class="footnote"> <a name="footnote_148-1" id="footnote_148-1"></a>
+ <a href="#fnanchor_148-1">[148-1]</a>
+ This is possible between labor and capital, at least in so far as a
+ comparison can be instituted between the sacrifice of human rest there is
+ in labor and the sacrifice of enjoyment in the building up of capital. But
+ the person who introduces an entirely unimproved piece of land into the
+ service of production, stands to the laborer as well as to the capitalist
+ in a relation which is entirely incomparable with any other. (See § 156.)
+ The doctrine of former agriculturists, that one-half of the harvest was to
+ be ascribed to the soil and the other to the manure, would not suffice
+ here, even if it were correct. Compare <i>Fraas</i>, Gesch. der Landbau-
+ und Forstwissenschaft, 257. But in the production of a calf, the
+ coöperation of a bull and cow are necessary. Yet no one is in condition to
+ determine what portion of the calf is to be accounted as belonging to
+ either. If the bull and cow belong to different owners, the relation of
+ supply and demand, and the deeper causes that determine them, decide in
+ what proportion the value of the calf is to be divided among them.</p>
+
+ <p class="footnote"> <a name="footnote_148-2" id="footnote_148-2"></a>
+ <a href="#fnanchor_148-2">[148-2]</a>
+ Among the greatest services rendered by <i>Adam Smith</i> is, his complete
+ demonstration, that any income may be resolved into one or more of the
+ three great branches of the national income. (I, ch. 6.)</p>
+
+ <p class="footnote"> <a name="footnote_148-3" id="footnote_148-3"></a>
+ <a href="#fnanchor_148-3">[148-3]</a>
+ <i>Ricardo</i> has not unfrequently bewildered uncritical readers, by his
+ habit&mdash;in which he is by no means always consistent&mdash;of using
+ the expressions higher and lower wages, higher and lower profit of
+ capital, to designate not the absolute greatness of these branches of
+ income, either in money or in the wants of life, nor their greatness from
+ a personal point of view, but only their relative greatness as compared
+ with the aggregate income, the measure of the quota of the aggregate
+ product which is divided among workmen, capitalists, etc. And yet, in the
+ case of most economic questions, this is without doubt the less
+ interesting side. Compare the polemic of <i>R. Jones</i>, On the
+ Distribution of Wealth, 1831, I, 288 ff.; <i>Senior</i>, Outlines, 142
+ seq.; <i>Carey</i>, On the Rate of Wages, 1834, 24. Thus, according to
+ <i>Ricardo</i>, the increase of one branch is possible only at the expense
+ of another, while in the case of flourishing nations, the three branches
+ increase absolutely and together. <i>Ricardo</i>, himself, was by no means
+ unacquainted with this, as may be seen from <i>Baumstark's</i> German
+ translation of his work, pp. 37, 108 ff.</p>
+
+<p><span class='pagenum'>[Pg 14]</span></p>
+
+<h3 class="p4">CHAPTER II.</h3>
+
+<h3>THE RENT OF LAND.</h3>
+
+<p class="p2 center"><a name="S149"></a>SECTION CXLIX.</p>
+
+<p class="center smaller">THEORY OF RENT.</p>
+
+<p>Rent is that portion of the regular net product of a piece of land which
+remains after deducting the wages of labor and the interest on the capital
+usual in the country, incorporated into it.<a name="fnanchor_149-1"
+id="fnanchor_149-1"></a><a href="#footnote_149-1" class=
+"fnanchor">[149-1]</a> Hence it is the price paid for the using of the land
+itself, or for what Ricardo calls the original inexhaustible forces <span
+class='pagenum'>[Pg 15]</span> of the soil which are capable of being
+appropriated.<a name="fnanchor_149-2" id="fnanchor_149-2"></a><a
+href="#footnote_149-2" class="fnanchor">[149-2]</a> This price also
+depends, of course, on the relation between demand and supply; the demand
+in turn, on the wants and means of payment of buyers, but the supply by no
+means on cost of production, which, from the definitions above given, is
+here unthinkable. However, land has this in common with other means of
+production, that its price is mainly determined by that of its
+products.</p>
+
+ <p class="footnote"> <a name="footnote_149-1" id="footnote_149-1"></a>
+ <a href="#fnanchor_149-1">[149-1]</a>
+ According to <i>von Thünen</i>, Der isolirte Staat. in Beziehung auf
+ Landwirthschaft und Nat. Oek, 1850, I, 14: "what remains of the revenue of
+ an estate after deducting the interest on all the objects of value which
+ may be separated from the soil." According to <i>Whately</i>, it is
+ surplus profit. The expression "regular product" supposes, among other
+ things, an average skillfulness of the economic individual. Thus, for
+ instance, the farm-rent of a piece of land generally includes besides the
+ real rent of the land, interest on much capital which is more or less
+ firmly fixed in the soil. The importance of the latter may be
+ approximately determined from the fact that in the electorate of Hesse,
+ for instance, the value of all meadow lands, woods, and agricultural lands
+ is estimated at from 205 to 206 millions of thalers, and the value of all
+ the houses at 100 millions. (<i>Hildebrand</i>, Statist. Mittheil. über
+ die volkswirthschaftlichen Zustände Kurhessens, 1852, 37.) In the English
+ income tax of 1843, the annual value of all lands in Great Britain was
+ estimated at over 45 millions sterling, that of all houses at over 38
+ millions. However the farm-rent of a piece of land does not by any means
+ always embrace the entire rent. A part of the rent is paid to the state in
+ the form of taxes, and another portion to the payment of tithes. Short
+ leasehold terms, frequent land sales, the comparatively great difficulty
+ of disengaging capital invested in the cultivation of land, the union of
+ landed proprietor, capitalist and laborer in one person easily obscure the
+ law of rent.</p>
+
+ <p class="footnote"> <a name="footnote_149-2" id="footnote_149-2"></a>
+ <a href="#fnanchor_149-2">[149-2]</a>
+ The stores of immediate plant food in a piece of land, of minerals in a
+ mine, of salt in a salt mine, etc., are subject to the law of rent only in
+ so far as they may be considered inexhaustible; that is, they are not,
+ strictly speaking, subject to it. Our definition applies all the more to
+ the capacity for cultivation, and of support or bearing capacity mentioned
+ in § 35; and hence it is easier to follow the law of rent in the case of
+ land used for building purposes than for agriculture. When <i>v.
+ Mangoldt</i> claims that the exhaustibility or inexhaustibility of the
+ soil has nothing to do with rent so long as it flows evenly (<i>so lange
+ sie eben fliesst</i>) he is in harmony with his own general conception of
+ rarity-premiums (<i>Seltenheitsprämien</i>).</p>
+
+<p class="p2 center"><a name="S150"></a>SECTION CL.</p>
+
+<p class="center smaller">THEORY OF RENT.<br />
+(CONTINUED.)</p>
+
+<p>Agricultural products of equal quantity and quality are produced on
+pieces of land of unequal fertility, even when the same amount of skill is
+displayed by the husbandman, with very different outlays of capital and
+labor.<a name="fnanchor_150-1" id="fnanchor_150-1"></a><a href=
+"#footnote_150-1" class="fnanchor">[150-1]</a> And yet the price <span
+class='pagenum'>[Pg 16]</span> of these products in the same market is
+uniformly the same. This price must, on the supposition of free and
+intelligent competition, be, in the long run, at least high enough to cover
+the cost of production on even the worst soil (the margin of cultivation
+according to Fawcett), which must be brought under cultivation in order to
+satisfy the aggregate want. (See § 110.) This worst land need yield no
+rent.<a name="fnanchor_150-2" id="fnanchor_150-2"></a><a href=
+"#footnote_150-2" class="fnanchor">[150-2]</a> The better land which, with
+an equal outlay of labor and capital, produces a greater yield, furnishes
+an excess over the cost of production.<a name= "fnanchor_150-3"
+id="fnanchor_150-3"></a><a href= "#footnote_150-3" class=
+"fnanchor">[150-3]</a> This excess is rent, which, as a rule, is obviously
+higher in proportion as the difference in fertility between the worst and
+the better land is greater. The person who cultivates the land of a
+stranger may unhesitatingly turn this rent over to the owner; since,
+notwithstanding his so doing, all that he has himself <span
+class='pagenum'>[Pg 17]</span> contributed to production in labor and
+capital of his own, returns to him entire in the product.<a
+name="fnanchor_150-4" id="fnanchor_150-4"></a><a href="#footnote_150-4"
+class="fnanchor">[150-4]</a></p>
+
+<p>According to § 34, a continual increase in the amount of labor and
+capital lavished on the fertilization of land, agricultural science
+remaining the same, leads, sooner or later to this, that every new addition
+of capital or labor becomes relatively less remunerative than the
+preceding.<a name="fnanchor_150-5" id="fnanchor_150-5"></a><a
+href="#footnote_150-5" class="fnanchor">[150-5]</a> The worse the land is,
+<span class='pagenum'>[Pg 18]</span> the sooner is this point reached.
+Hence, it necessarily happens that, with an increase in the aggregate want
+of agricultural products, greater and greater amounts of labor and capital
+are employed in the further fertilization of land, and that there comes to
+be a greater difference between the fertility of the worst and better
+lands, in consequence of which the rent of the latter rises.<a
+name="fnanchor_150-6" id="fnanchor_150-6"></a><a href="#footnote_150-6"
+class="fnanchor">[150-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_150-1" id="footnote_150-1"></a>
+ <a href="#fnanchor_150-1">[150-1]</a>
+ <i>Flotow</i>, Anleitung zur Abschätzung der Grundstücke nach Klassen,
+ 1820, 50 ff., estimates the cost of production of a <i>scheffel</i> of rye
+ on land of the first class, at scarcely 1½ thalers; on land of the tenth
+ class, at 3 thalers. In Hanover, it is estimated that about 60 per cent.
+ of the land devoted to gardening and agricultural products produces only
+ from 2 to 4 times the quantity of seed sown; over 35 per cent. from 5 to 8
+ times, and 4.5 per cent. from 9 to 12 times. (<i>Marcard</i>, Zur
+ Beurtheilung des Nat. Wohlstandes im Königreich Hanover, Tab. 3.) In
+ Prussia, the rates of net produce adopted by the central commission in
+ 1862 vary from 3 to 420 silver groschens per <i>morgen</i>, in the case of
+ agricultural land; from 6 to 420 in the case of meadow land; in the case
+ of pasturage, from 1 to 360. (<i>v. Viebahn</i>, Statist. des Zollvereins,
+ II, 966.) In England, parliamentary investigations (1821) have shown that
+ the best land produces from 32 to 40, and the worst from 8 to 12 bushels
+ per acre of wheat. (Edinburgh Review, XL, 21.) As to the influence of the
+ elevation of land, the royal Saxon commission for the assessment of the
+ value of land, estimated that the net product of an acre <i>of</i> land at
+ a height above the level of the sea,</p>
+
+<div> <table class="fn" border="0" cellpadding="5" summary="Land Yield">
+
+<tr><td class="right" colspan="2">In the case of 2d class land&mdash;</td>
+<td class="right">In the case of 11th class land&mdash;</td></tr>
+
+<tr><td class="center">feet,</td><td class="center">per cent.</td>
+<td class="center">per cent. of the gross yield.</td></tr>
+
+<tr><td class="left">Of&nbsp;&nbsp;&nbsp;500</td>
+<td class="center">55&nbsp;&nbsp;</td><td class="center">42.9</td></tr>
+
+<tr><td class="left">Of&nbsp;&nbsp;&nbsp;800</td>
+<td class="center">52½</td> <td class="center">39½</td></tr>
+
+<tr><td class="left">Of 1600</td> <td class="center">48&nbsp;&nbsp;</td>
+<td class="center">34&nbsp;&nbsp;</td></tr>
+
+<tr><td class="left">Of 2400</td> <td class="center">43.8</td>
+<td class="center">26&nbsp;&nbsp;</td></tr>
+
+</table></div>
+
+ <p class="footnote"> <a name="footnote_150-2" id="footnote_150-2"></a>
+ <a href="#fnanchor_150-2">[150-2]</a>
+ The English are very fond of assuming that the worst land for the time
+ being under cultivation pays no rent. (<i>Ricardo</i>, Principles, II, 2.)
+ This fact is frequently obscured by the aggregation into one economic
+ whole of land that pays no rent and land that is able to pay rent.
+ (<i>John Stuart Mill</i>, Principles, II, ch. 16, § 3.) True it is that
+ there is a great deal of land which cannot be farmed out, but which can be
+ used only by its owners. Compare <i>Salfeld</i>, in the Landwirthsch.
+ Centralb., 1871, II, 182 ff. On land near Wetzlar which, notwithstanding
+ the high price of land in the neighborhood, could not be farmed out at
+ auction, because no one was desirous to lease it, and which was therefore
+ turned over to the highest bidder for the preceding piece, see
+ <i>Stöckhardt</i>, Zeitschr. für deutsche Landwirthe, 1861, 237. Where,
+ however, all the land has its own proprietors, the competition of farmers
+ may easily produce a rent for the worst land. It is a matter of complete
+ indifference to the theory of rent, whether the worst land when possessed
+ only by right of occupation or used as pasturage for cattle previous to
+ its cultivation, had value or not. Compare <i>Nebenius</i>, Oeff. Credit,
+ I, 29; <i>Hermann</i>, Staatswirthsch. Unters., 170 seq.</p>
+
+ <p class="footnote"> <a name="footnote_150-3" id="footnote_150-3"></a>
+ <a href="#fnanchor_150-3">[150-3]</a>
+ The analogous gradation in mining may make this clearer.</p>
+
+ <p class="footnote"> <a name="footnote_150-4" id="footnote_150-4"></a>
+ <a href="#fnanchor_150-4">[150-4]</a>
+ <i>Ricardo</i> illustrated this by the following example. An uncultivated
+ tract of country is settled by a small colony. As long as there is here an
+ excess of land of the best quality, and everyone may take possession of it
+ without paying anything therefor, no rent of the land which is merely
+ occupied is possible. But if all the first class land is under
+ cultivation&mdash;land which perhaps with the employment of a small amount
+ of capital yields 5 quarters an acre per annum; and the increasing
+ population necessitates the cultivation of land of the second class, which
+ with the same outlay of capital yields only 4 quarters an acre per annum,
+ there arises a rent of 1 quarter an acre per annum for land of the first
+ class. For the price, 4 quarters is now high enough to cover the cost of
+ production per acre, and it must be a matter of complete indifference
+ (complete indifference?) to a new comer whether he obtains 5 quarters from
+ land of the first class as a farmer and pays out 1 quarter, or whether he
+ harvests 4 quarters from second class land as proprietor. If there is a
+ further increase of population, so that land of the third class also,
+ which yields only 3 quarters per acre per annum, must be brought under
+ cultivation, the price of corn rises again because the cost of production
+ has now to be covered by three quarters. Land of the first class now pays
+ a rent of 2 quarters and second class land of 1 quarter. (Ch. 2.)</p>
+
+ <p class="footnote"> <a name="footnote_150-5" id="footnote_150-5"></a>
+ <a href="#fnanchor_150-5">[150-5]</a>
+ <i>von Thünen</i>, der isolirte Staat, II, I, 179, estimates that a bed of
+ manure 1/3 of an inch thick on an acre of ground, increases the production
+ by ½; that a second ½ inch of manure increases the yield only by a + of
+ 5/8 corn; the third of ¼ corn, etc. <i>Geyer</i> is of opinion that, in
+ Saxony, land of the average quality will yield a gross product of 60
+ thalers per acre, and 14 thalers net product per acre, in case it is
+ managed with the greatest intelligence and the employment of a large
+ amount of capital; when managed in a very ordinary way, it would yield 20
+ thalers gross, and 7½ thalers net product. <i>Thünen</i> gives the
+ following formula determining when it is more advantageous to cultivate
+ the old land with more <i>intensiveness</i> (higher farming) than to begin
+ the cultivation of new: As long as p - <i>a</i>q is less than &#8730;<span
+ class="o">ap</span>, so long is an increase of the outlay of capital on
+ the same land more profitable than the cultivation of new land, and
+ <i>vice versa</i>. Here p = aggregate product obtained by a workman in a
+ year from the amount of capital used by him; a = sum of his necessary
+ yearly wants; <i>a</i> = the interest per annum of a capital = p; q = the
+ amount of capital given to assist the individual workman.</p>
+
+ <p class="footnote"> <a name="footnote_150-6" id="footnote_150-6"></a>
+ <a href="#fnanchor_150-6">[150-6]</a>
+ <i>Ricardo</i> had, in every case in which outlay of capital and labor of
+ different degrees of productiveness had to be used on the same land, to
+ suppose a price of the products = the cost of the least productive outlay.
+ See the tables in <i>Ricardo's</i> work, On the Influence of a low Price
+ of Corn on the Profits of Stock, 1815, 14 seq. <i>Schmoller</i>, on the
+ other hand, rightly applies the principle of united costs of production in
+ as far as the usual amount of profit of the producer is added to the cost
+ of the commodity with the highest cost of production. Mittheilungen des
+ Landwirthsch. Instituts zu Halle, 1865, 128. Compare <i>supra</i>, §§ 106,
+ 110.</p>
+
+<p class="p2 center"><a name="S151"></a>SECTION CLI.</p>
+
+<p class="center smaller">THEORY OF RENT.&mdash;LAND FAVORABLY SITUATED.</p>
+
+<p>The favorable situation of a piece of land operates, in almost every
+politico-economical respect, in the same manner as its fertility.<a
+name="fnanchor_151-1" id="fnanchor_151-1"></a><a href="#footnote_151-1"
+class="fnanchor">[151-1]</a> If a market, to be fully supplied, needs to be
+fed from a circuit of ten miles, the price must be sufficient to make good
+not only the other cost of production but the freight over ten miles. Here,
+therefore, all producers living nearer to the market, who have to make a
+smaller outlay for transportation and yet obtain the same market price for
+their produce, make <span class='pagenum'>[Pg 19]</span> a profit exactly
+corresponding to the advantage of their situation.<a name="fnanchor_151-2"
+id="fnanchor_151-2"></a><a href="#footnote_151-2" class=
+"fnanchor">[151-2]</a></p>
+
+<p>The situation of individual pieces of land relatively to farm buildings,
+etc., operates in a similar way.<a name="fnanchor_151-3"
+id="fnanchor_151-3"></a><a href="#footnote_151-3" class=
+"fnanchor">[151-3]</a></p>
+
+ <p class="footnote"> <a name="footnote_151-1" id="footnote_151-1"></a>
+ <a href="#fnanchor_151-1">[151-1]</a>
+ <i>L'éloignement équivaut à la stérilité.</i> (<i>J. B. Say.</i>) If we
+ imagine with <i>A. Walker</i> an entirely uncultivated country, equally
+ fertile in every part, settled only on the coast, and divided into shares
+ of equal breadth, equally accessible at all points, so that every settler
+ has unlimited space to extend his possessions from the coast into the
+ interior, the shares situated in the middle of the coast strip would be
+ most eagerly sought after; since in its vicinity, prospectively, all the
+ institutions of the country would come together. The colonist, therefore,
+ who should obtain that share as his, would, unquestionably, be in a
+ condition to pay a price for this preference, that is a rent. (Science of
+ Wealth, 296.)</p>
+
+ <p class="footnote"> <a name="footnote_151-2" id="footnote_151-2"></a>
+ <a href="#fnanchor_151-2">[151-2]</a>
+ It is a consequence both of their difference of situation and of their
+ fertility that in the Himalaya the farmers low down on the sides pay 50
+ per cent. of the gross product as farm-rent, and higher up, 20 per cent.
+ less. (<i>Ritter</i>, Erdkunde, III, 878.) Both influences may be traced
+ most accurately in East Friesland, and in similar places: marsh land,
+ sandy land, heath land, and high moorland.</p>
+
+ <p class="footnote">Its situation influences especially the money rent of
+ land, and its quality the amount of produce. (<i>McCulloch</i>,
+ Principles, III, 5.)</p>
+
+ <p class="footnote"> <a name="footnote_151-3" id="footnote_151-3"></a>
+ <a href="#fnanchor_151-3">[151-3]</a>
+ We need only mention the hauling of the crops and of manure. According to
+ the instructions of the royal Saxon commission, above mentioned, the cost
+ is assumed to be 10 per cent. higher for a distance of 250 rods, and 20
+ per cent. higher for a distance of 500 rods.</p>
+
+<p class="p2 center"><a name="S152"></a>SECTION CLII.</p>
+
+<p class="center smaller">THE THEORY OF RENT.<br />
+(CONTINUED.)</p>
+
+<p>From what we have said, it follows that the rent of the land of a
+country is equal at least to the sum of all the differences between the
+product of the least productive portions of capital which have been
+necessarily laid out in the cultivation of the soil and the product of the
+other portions more productively laid out by other husbandmen. It may rise
+higher than this on account of a coalition among landowners or immoderate
+competition among farmers, who may thereby be forced to surrender a portion
+of their wages and interest on capital to the former; but it can never
+lastingly fall below this amount. If the landowners themselves were to
+surrender all claim to rent, the price of agricultural products would not
+sink if the market was kept fully supplied; and the excess obtained from
+the better land over and above the cost of production would go, but only in
+the nature of a gift, to the farmers, corn dealers and individual
+consumers.<a name="fnanchor_152-1" id="fnanchor_152-1"></a><a
+href="#footnote_152-1" class="fnanchor">[152-1]</a> Normal rent is not to
+<span class='pagenum'>[Pg 20]</span> be explained by any mysterious or
+peculiar productiveness<a name="fnanchor_152-2" id="fnanchor_152-2"></a><a
+href="#footnote_152-2" class= "fnanchor">[152-2]</a> of the land that
+yields it, but on the contrary, by the fact that even material forces
+unexhaustible in themselves, but which can be productive only in
+combination with given parcels of land, uniformly oppose even successively
+greater difficulties to every successive and additional improvement.<a
+name="fnanchor_152-3" id="fnanchor_152-3"></a><a href="#footnote_152-3"
+class="fnanchor">[152-3]</a></p>
+
+<p><span class='pagenum'>[Pg 21]</span>Moreover, the capital which becomes
+a part of the land to such an extent that it cannot be separated from it,
+and perhaps not even distinguished from it at sight, such for instance as
+has been laid out for purposes of drainage or in the purchase of material
+intended to modify the nature of the soil, partakes of the character of the
+land itself, and its yield obeys the laws of rent. How frequently it
+happens that such improvements made by the farmer without the least
+assistance from the owner of the land permanently contribute to an increase
+of the rent. (§ 181.)<a name="fnanchor_152-4" id="fnanchor_152-4"></a><a
+href="#footnote_152-4" class="fnanchor">[152-4]</a></p>
+
+ <p class="footnote"> <a name="footnote_152-1" id="footnote_152-1"></a>
+ <a href="#fnanchor_152-1">[152-1]</a>
+ Compare <i>J. Anderson</i>, An Inquiry into the Nature of the Corn Laws,
+ 1777. Extracts from the same in the Edinburgh Review, LIV, 91 ff. On the
+ other hand, <i>Buchanan</i>, on Adam Smith, IV, 134, thinks that rent
+ arises exclusively from the monopoly of the owners, and that without it
+ the price of corn would be lower. It is certain, however, that if the land
+ of a country be considered as one great piece of property, and under one
+ great system of husbandry, the products of the soil might be offered
+ permanently at a price corresponding to the average cost of production, on
+ the better and worse pieces of land. (<i>Umpfenback</i>, N. Oek., 191.)</p>
+
+ <p class="footnote"> <a name="footnote_152-2" id="footnote_152-2"></a>
+ <a href="#fnanchor_152-2">[152-2]</a>
+ <i>Malthus</i>, On the Policy of restricting the Importation of foreign
+ Corn, 1815. Additions, 1817, to the Essay on the Principle of Population,
+ III, ch. 8-12; Principles, 217 ff.</p>
+
+ <p class="footnote"> <a name="footnote_152-3" id="footnote_152-3"></a>
+ <a href="#fnanchor_152-3">[152-3]</a>
+ <i>Ricardo</i> says that if air, water, elasticity and steam were of
+ different qualities, and might be made objects of exclusive possession;
+ and that if each kind could be had only in a moderate supply, they would,
+ like land, produce a rent, according as they were brought into use, one
+ kind after another. In the class of natural forces, also, the possession
+ of a secret of production or of inimitable skill, or a legal right to its
+ exclusive use, may produce something similar to rent. (<i>Senior</i>,
+ Outlines, 91.) <i>Hermann</i>, Staatswirthsch. Unters., 163 ff., had
+ already laid the foundation of this doctrine, and earlier yet,
+ <i>Canard,</i> 17 seq., and <i>Hufeland</i>. I, 303 ff. See <i>supra</i>,
+ § 120. Hence <i>v. Mangoldt</i> uses the word rent to designate all
+ rarity-premiums. <i>John Stuart Mill</i>, III, ch. 5, 4. <i>Schäffle</i>
+ speaks of the universal existence of a surplus; that is, of the factor of
+ rent (Nat. Oek., I, Aufl., 140 ff.), and has recently developed this into a
+ theory thoroughly systematic and detailed. (Nationalökonomische Theorie
+ der ausschliessenden Absatzverhältnisse, 1867.)</p>
+
+ <p class="footnote">According to him, rent is "the premium paid for the
+ most economic course taken in the interest of society in general;" and
+ hence he finds rent as much in superior labor and in a very advantageous
+ outlay of capital. Yet he grants, that "exclusive custom (<i>Kundschaft</i>)
+ on the basis of natural advantages occurs only in the case of land-rent."
+ (59.) And even granting that he is right, that no rent is by itself
+ forever secure (74 seq.), and that much rent is a premium paid for a
+ search after and the appropriation of the best land, divination of the
+ best situations, etc. (60 ff., 74 ff.), there still remains the great
+ difference between rent and the extra income from labor and capital; that
+ here the very transitory nature of the substratum, or basis, and the
+ personal merit of the recipient, is the rule, while in the former case it
+ is a rare exception. Willingly, therefore, as I recognize the possibility
+ and fruitfulness of Schäffle's way of conceiving this subject (the latter,
+ especially, for monographic purposes), I prefer, so far as the entire
+ system is concerned, the keeping apart of the three branches of income
+ corresponding to the three factors of production as has been usual since
+ Adam Smith's time.</p>
+
+ <p class="footnote"> <a name="footnote_152-4" id="footnote_152-4"></a>
+ <a href="#fnanchor_152-4">[152-4]</a>
+ <i>John Stuart Mill</i>, ch. 16, § 5. An example in <i>Fawcett</i>,
+ Manual, 149 seq. This explains many objections to Ricardo's laws, which
+ are the result of misconception. Thus, for instance, in <i>Schmalz</i>,
+ Staatswirthschaftslehre, I, 81, Quarterly Review, XXXVI, 412 ff.
+ <i>Bastiat</i>, Harmonies économiques, ch. 9, where rent is considered the
+ interest on the capital laid out in bringing land under cultivation and
+ improving it. If, however, we imagine an island to emerge suddenly from
+ the waves in the vicinity of Naples, in consequence of an earthquake, no
+ one can doubt that its land would sell at a very high rate and pay a very
+ good rent. And yet no capital or labor has been laid out on it. A similar
+ lesson is taught by the fact, that, in Scotland, rocks which are covered
+ twice a day by the waves are leased for the sake of the sea-weed left on
+ them. (<i>Adam Smith</i>, Wealth of Nations, I, ch. 11.) Also by the fact,
+ that in Poulopinang, a cavity in which many edible swallows' nests are
+ found, pays £500 a year rent. (Geogr. Ephemeriden, Oct., 1805, 134.)
+ However, <i>Bastiat</i>, abstractly speaking, is right when he says, that
+ every one by the importation of agricultural products from quarters which
+ pay no rent, and still more by emigrating thither, may deprive the owners
+ of land of the tribute imminent in rent.</p>
+
+ <p class="footnote">But how would it be if the cost of transportation and
+ emigration amounted to more than the rent? The case theoretically so
+ important, in which all the land in the world is supposed to have been
+ appropriated as private property, this writer, generally so lucid, treats
+ in a surprisingly blind way (275 ff). It is remarkable that <i>A.
+ Walker</i>, Science of Wealth, spite of his prejudices in favor of
+ Bastiat's doctrines on the gratuitous nature of all natural forces,
+ nevertheless follows, essentially, <i>Ricardo's</i> theory of rent, 294
+ ff.</p>
+
+ <p class="footnote">A much more vulgar error yet is, that rent is the
+ result of the capacity of the capital employed in the purchase of the land
+ to produce some interest Thus <i>Hamilton</i>, Reports to the Congress on
+ the Manufactures of the United States, 1793, and <i>Canard</i>, Principes,
+ sec. 5. Per <i>contra</i>, compare <i>Turgot's</i> view, <i>supra</i>, §
+ 42, note 1. Even <i>Locke</i>, Considerations on the Lowering of Interest,
+ Works, II, 17 ff., maintained the closest parallel between rent and
+ interest to be possible, with this difference only, that money was all of
+ a kind but pieces of land of different degrees of fertility. Similarly
+ <i>Sir D. North</i>, Discourse upon Trade, 1791, with his parallel of
+ landlord and stocklord.</p>
+
+<p class="p2 center"><a name="S153"></a>SECTION CLIII.<span
+class='pagenum'>[Pg 22]</span></p>
+
+<p class="center smaller">THEORY OF RENT.<br />
+(CONTINUED.)</p>
+
+<p>Ricardo says that rent can never, not even in the slightest degree,
+constitute an element in the price of corn. This is certainly not a very
+happy way of expressing the truth, that a high rent is not the cause, but
+the effect, of a relatively high price of corn.<a name="fnanchor_153-1"
+id="fnanchor_153-1"></a><a href="#footnote_153-1" class=
+"fnanchor">[153-1]</a> Ricardo would have been nearer right had he said
+that rent was not a component part of the price of every portion of the
+supply of corn brought to market.</p>
+
+<p>Is rent an addition to national income? Ricardo (ch. 31) answers this
+question in the negative, and says that it takes from the consumers what it
+gives to the owners of the land, and that it increases only the value in
+exchange of the national wealth.<a name="fnanchor_153-2" id="fnanchor_153-2">
+</a><a href="#footnote_153-2" class="fnanchor">[153-2]</a> It is evident
+that as thus stated, the question is not properly put. Neither interest on
+capital nor wages are any <span class='pagenum'>[Pg 23]</span> addition to
+a nation's income, but, like rent, only forms of trade, by means of which
+that income is distributed among the individuals constituting the nation.
+(§ 201.)</p>
+
+<p>The special kind of product obtained from a piece of land influences its
+rent only in so far as the growth of that kind of product is exclusively
+confined either by nature, privilege or prejudice to certain land.<a
+name="fnanchor_153-3" id="fnanchor_153-3"></a><a href="#footnote_153-3"
+class="fnanchor">[153-3]</a> Adam Smith is of opinion that the rent of
+agricultural land is ordinarily (!) one-third of the gross product; that of
+coal mines, from one tenth to a maximum of one-fifth; of good lead and tin
+mines, one sixth (with the dues paid the state of twenty-one and two-thirds
+per cent.); of Peruvian silver mines, scarcely one-tenth; of gold mines,
+one-twentieth. And he thinks that rent grows less certain for every
+succeeding article.<a name="fnanchor_153-4" id="fnanchor_153-4"></a> <a
+href="#footnote_153-4" class="fnanchor">[153-4]</a></p>
+
+<p>So far as this is based on facts, it may be explained as follows: The
+greater capacity an article has for transportation from one place to
+another, the less important is advantage of situation, which is generally
+one of the chief elements of rent. The more indispensable the commodity is,
+the more readily is the consumer induced to pay a price for it greater than
+the cost of production; that is, to pay a rent. This again is enhanced by
+the difficulty of the preservation of the commodity. Lastly, the more it is
+a mere product of nature,<a name="fnanchor_153-5" id=
+"fnanchor_153-5"></a><a href="#footnote_153-5" class="fnanchor">[153-5]</a>
+the more difficult it is to simultaneously employ several portions of
+capital of different grades of productiveness in its production.</p>
+
+ <p class="footnote"> <a name="footnote_153-1" id="footnote_153-1"></a>
+ <a href="#fnanchor_153-1">[153-1]</a>
+ To be met with in this form even in <i>Adam Smith</i>, Wealth of Nations,
+ I, ch. 11, pr. <i>John Stuart Mill</i>, Principles II, ch. 16, § 6, thus
+ states the matter: "Whoever cultivates land, paying a rent for it, gets in
+ return for his rent an instrument of superior power to other instruments
+ of the same kind for which no rent is paid. The superiority of the
+ instrument is in exact proportion to the rent paid for it." According to
+ <i>v. Jacob</i>, Grundsätze der Nat. Oek., I, 187, rent constitutes a much
+ larger portion of the price of commodities than is generally supposed, in
+ as much as wages depend so largely on the price of the means of
+ subsistence. Per contra, <i>Baudrillart</i>, Manuel, 391 ff., who
+ maintains that rent is practically insignificant.</p>
+
+ <p class="footnote"> <a name="footnote_153-2" id="footnote_153-2"></a>
+ <a href="#fnanchor_153-2">[153-2]</a>
+ Similarly <i>Buchanan</i>, loc. cit., and <i>Sismondi</i>, Richesse
+ commerciale, I, 49. Compare contra, <i>Malthus</i>, Inquiry into the
+ Nature and Progress of Rent, 15. I would call attention <i>en passant</i>
+ to the absurdity that there may be an increase in the value in exchange of
+ a nation's entire resources without any increase in its value in use.
+ (<i>Supra</i>, § 8.)</p>
+
+ <p class="footnote"> <a name="footnote_153-3" id="footnote_153-3"></a>
+ <a href="#fnanchor_153-3">[153-3]</a>
+ Thus <i>Adam Smith</i> remarks that corn fields and rice fields pay very
+ different rents, because it is not always possible to convert one into the
+ other. (Wealth of Nat., I, ch. 11, 1.) Compare the tabular statistical
+ view of the rent of land used for vineyards, gardens, meadows, pasturages,
+ wood and farming purposes, in <i>Rau</i>, Lehrbuch, I, § 218. For a
+ general theory of the rent of wooded land, see <i>Hermann</i>, Staatsw.
+ Unters., 177 ff.; of vineyards, 181 seq.</p>
+
+ <p class="footnote"> <a name="footnote_153-4" id="footnote_153-4"></a>
+ <a href="#fnanchor_153-4">[153-4]</a>
+ <i>Adam Smith</i>, Wealth of Nat., I, ch. 11, 3.</p>
+
+ <p class="footnote"> <a name="footnote_153-5" id="footnote_153-5"></a>
+ <a href="#fnanchor_153-5">[153-5]</a>
+ It is hereby rendered akin to those low stages of civilization in which no
+ rent is paid.</p>
+
+<p><span class='pagenum'>[Pg 24]</span></p>
+
+<p class="p2 center"><a name="S154"></a>SECTION CLIV.</p>
+
+<p class="center smaller">THEORY OF RENT.<br />
+(CONTINUED.)</p>
+
+<p>As the purchase of a piece of land<a name="fnanchor_154-1" id=
+"fnanchor_154-1"></a><a href="#footnote_154-1" class="fnanchor">[154-1]</a>
+is no more and no less than its exchange against a portion of capital in
+the shape of money,<a name="fnanchor_154-2" id="fnanchor_154-2"></a><a
+href="#footnote_154-2" class= "fnanchor">[154-2]</a> its purchase price
+depends generally on the amount it will rent for as compared with the
+interest on the capital to be given in exchange for it. The rate of
+interest remaining the same, it rises and falls with its rent. And <i>vice
+versa</i>, the rent remaining the same it rises and falls inversely as the
+rate of interest.<a name="fnanchor_154-3" id="fnanchor_154-3"></a><a
+href="#footnote_154-3" class="fnanchor">[154-3]</a> A rise in the price of
+land is not always a proof of the growing wealth of a people. It may
+proceed from a depreciation of the value of money, or from a decrease of
+the rate of interest caused by a decline in the number of loans which can
+be advantageously placed.</p>
+
+<p>It is frequently said, that the price paid for land is greater than the
+money-capital which yields an equal revenue.<a name="fnanchor_154-4"
+id="fnanchor_154-4"></a><a href="#footnote_154-4" class="fnanchor">[154-4]</a>
+This, abstraction made of proletarian distress prices for small parcels of
+land and of the political and social privileges of landowners, is accounted
+for by the assumed greater security of the latter,<a name="fnanchor_154-5"
+id="fnanchor_154-5"></a><a href="#footnote_154-5" class="fnanchor">[154-5]</a>
+<span class='pagenum'>[Pg 25]</span> which, however, fares ill enough in
+war times, and times of political disturbance. The fact itself is found to
+exist, I think, only in economically progressive times, when confidence
+prevails, and it is based on the pretty certain prospect that the rate of
+interest will decline, while rents will rise.<a name="fnanchor_154-6"
+id="fnanchor_154-6"></a><a href="#footnote_154-6" class=
+"fnanchor">[154-6]</a></p>
+
+<p>It has been observed in Belgium, that the medium farm rent of land, in
+quarters remarkable for any economic peculiarity whatever, pays an interest
+lower, as compared with the purchase money, in proportion as the country
+about is more thickly populated, and as its husbandry is carried on by
+farmers instead of by owners.<a name="fnanchor_154-7" id=
+"fnanchor_154-7"></a><a href="#footnote_154-7" class=
+"fnanchor">[154-7]</a> This phenomenon is doubtless correlated with these
+others, that the conditions just named are pretty regularly attendant on a
+high state of civilization, and that advanced civilization is attended
+uniformly by a decline in the rate of interest. (175).<a name=
+"fnanchor_154-8" id= "fnanchor_154-8"></a><a href="#footnote_154-8" class=
+"fnanchor">[154-8]</a></p>
+
+ <p class="footnote"> <a name="footnote_154-1" id="footnote_154-1"></a>
+ <a href="#fnanchor_154-1">[154-1]</a>
+ In every day language, people say of a man who has purchased a piece of
+ land, that he "put" as much capital as is equal to the purchase price
+ "into his land;" or "laid out on it" as much. But this mode of expression
+ is as inaccurate as is this other: "the sun is rising," or "the sun has
+ gone down."</p>
+
+ <p class="footnote"> <a name="footnote_154-2" id="footnote_154-2"></a>
+ <a href="#fnanchor_154-2">[154-2]</a>
+ <i>Macleod</i>, who is not fond of the natural mode of expression,
+ maintains that the purchase price of a piece of land is equal to the
+ discounted value of the sum of the values of all the future products to be
+ obtained from the land. (Elements, 75.)</p>
+
+ <p class="footnote"> <a name="footnote_154-3" id="footnote_154-3"></a>
+ <a href="#fnanchor_154-3">[154-3]</a>
+ C:i::L:r in which C = the capital, i = its interest, L = the piece of
+ land, and r = its rent.</p>
+
+ <p class="footnote"> <a name="footnote_154-4" id="footnote_154-4"></a>
+ <a href="#fnanchor_154-4">[154-4]</a>
+ There are traces to be found of the fact among the ancient Greeks, that
+ the farm-rent of landed estates paid a smaller interest on the purchase
+ money than was otherwise usual in the country. <i>Isaeus de Hagn.</i>, 42;
+ <i>Salmasius</i>, De Modo Usur., 848.</p>
+
+ <p class="footnote"> <a name="footnote_154-5" id="footnote_154-5"></a>
+ <a href="#fnanchor_154-5">[154-5]</a>
+ Thus even <i>North</i> and <i>Locke</i>, loc. cit.; <i>Cantillon</i>,
+ Nature du Commerce, 294.</p>
+
+ <p class="footnote"> <a name="footnote_154-6" id="footnote_154-6"></a>
+ <a href="#fnanchor_154-6">[154-6]</a>
+ Compare <i>List</i>, Werke II, 173. In Belgium, farm-rent per
+ <i>hectare</i> was, in 1830 = 57.25 francs, in 1835 = 62.78, in 1840 =
+ 70.44, in 1846 = 74.50, on an average. This was at the rate of from 2.62
+ to 2.80, or an average of 2.67 per cent. on the purchase money. If to this
+ we add the increase in the rise of land between 1830 and 1846, divided by
+ 16, the yearly revenue rises from 2.67 to 3.91 per cent., that is pretty
+ nearly the rate of interest on hypothecation, and is higher or lower in
+ the different provinces, as the former is higher or lower. (<i>Heuschling</i>,
+ Résumé du Récensement général de 1846, 89.) In France, land paid but from
+ 2 to 3 per cent. on the purchase money; but both rents and the price of
+ land have doubled between 1794 and 1844. (Journal des Econ., IX, 208.)</p>
+
+ <p class="footnote"> <a name="footnote_154-7" id="footnote_154-7"></a>
+ <a href="#fnanchor_154-7">[154-7]</a>
+ Moreover, whole countries may, because of their great natural advantages,
+ possess, so far as the commerce of the entire world is concerned,
+ something analogous<a name= "fnanchor_TN4" id= "fnanchor_TN4"></a><a href=
+ "#footnote_TN4" class= "fnanchor">[TN 4]</a> to rent. Thus, for instance,
+ North America, although here, this world-rent finds expression in the
+ national height of the wages of labor and of the rate of interest, (<i>v.
+ Bernhardi</i>, Versuch einer Kritik der Gründe welche für grosses und
+ kleines Grundeigenthum angeführt werden, 1848, 294.)</p>
+
+ <p class="footnote"> <a name="footnote_154-8" id="footnote_154-8"></a>
+ <a href="#fnanchor_154-8">[154-8]</a>
+ Writers as old as <i>Culpeper</i>, A Tract against the high Rate of
+ Usurie, 1623, and <i>Sir J. Child</i>, Discourse of Trade, p. 22 of the
+ French translation, observed the connection existing between a low rate of
+ interest, national wealth and a flourishing state of commerce on the one
+ hand, and a high price of the necessaries of life and of land in the
+ other. <i>Sir W. Petty</i> would estimate the rent of land as follows: If
+ a calf pasturing in an open meadow gains as much flesh in a given time as
+ is equal to the cost of the food of 50 men for a day, and a workman, on
+ the same land, in the same time, produces food for 60 men, the rent of the
+ land must be 50, and the rate of wages 10. (Political Anatomy of Ireland,
+ 62 seq.; compare 54.) Besides, he accounts for the height of rents by the
+ density of the population exclusively, and he would prefer to see both
+ increase <i>ad infinitum</i>. (Several Essays on Political Arithmetic, 147
+ ff.)</p>
+
+ <p class="footnote">The germs of the <i>Ricardo</i> law of rent, in
+ <i>Boisguillebert</i>: the price of corn determines how far the
+ cultivation may be extended; by manuring the land, as much corn as desired
+ may be obtained, provided the cost of production is covered. (Traité des
+ Grains, II, ch. 2 ff.) There is a foreshowing of the same law in the
+ Physiocratic view that only in the production of raw material is there a
+ real excess over and above the cost&mdash;<i>produit net</i>. Compare
+ <i>Quesnay</i>, Probl., économique, 177 ff. Sur les travaux des artisans.
+ (Daire.) <i>Auxiron</i>, Principes de tout Gouvernement, 1776, I, 126.
+ <i>Adam Smith</i> came very near to the true principle in the case of coal
+ mines, but was hindered reaching it in other cases by the false assumption
+ that certain kinds of agricultural production always yield a rent, while
+ others do so only under certain circumstances. Besides he always
+ considered the interest of capital fixed in the soil; buildings, for
+ instance, as part of the rent. (Wealth of Nat., I, ch. 11.) Compare
+ <i>Hume's</i> Letter to Adam Smith; <i>Burton's</i> Life and
+ Correspondence of Hume, II, 486; <i>von Thünen</i>, Isolirter Staat., I,
+ 15 ff.</p>
+
+ <p class="footnote">The most immediate predecessors of <i>Ricardo</i>,
+ Principles, 2, 3, 24, 31, are <i>Anderson</i> (§ 152); <i>West</i>, Essay
+ on the Application of Capital to Land, 1815, and <i>Malthus</i>, Inquiry
+ into the Nature and Progress of Rent, 1815. See § 152. It is wonderful how
+ a theory which, in 1777, remained almost untouched, was in 1815 etc.,
+ attacked and defended with the greatest zeal, because it then affected the
+ differences between the moneyed and landed interest. Yet <i>Ricardo</i>
+ did not take into account at all the rent-creating influence of the
+ situation of land in relation to the market, as well as to the
+ "farm-office" (<i>dem Wirthschaftshofe</i>). The influence of the system
+ of husbandry on rent, first thoroughly treated by <i>von Thünen</i>, loc.
+ cit. What has recently been urged against <i>Ricardo</i> by, for instance,
+ <i>J. B. Say</i>, Traité, II, ch. 9; <i>Sismondi</i>, N. P., III, ch. 12;
+ <i>Jones</i>, Essay on the Distribution of Wealth, 1831 (see Edinburg
+ Review, LIV), bears evidence either of a misunderstanding of the great
+ thinker, or else contains only modifications of some individual abstract
+ propositions of his, stated perhaps too strictly. In judging
+ <i>Ricardo</i>, it must not be forgotten, that it was not his intention to
+ write a text-book on the science of Political Economy, but only to
+ communicate to those versed in it the result of his researches, in as
+ brief a manner as possible. Hence he writes so frequently making certain
+ assumptions; and his words are to be extended to other cases only after
+ due consideration, or rather re-written to suit the changed case.</p>
+
+ <p class="footnote"><i>Baumstark</i> very correctly says: "Rent rises, not
+ because new capital has been invested, but when the circumstances of trade
+ make a new addition to capital possible." (Volkswirthschaftliche
+ Erläuterungen über Ricardo's System, 1838, 567.) <i>Fuoco's</i> Nuova
+ Teoria della Rendita, Saggi economici, No. 1, is nothing but an Italian
+ version of the doctrines of Malthus and Ricardo. The greater number of
+ anti-Ricardo theories of rent have originated from the rapid and
+ apparently unlimited growth of national husbandry in recent times. Thus it
+ is a fundamental thought in <i>Rodbertus</i>, Sociale Briefe, 1851, No. 3,
+ that an increase of the price of corn need not attend an increase of
+ population, either uniformly or necessarily. According to <i>Carey</i>,
+ The Past, the Present and the Future, ch. 1, 1848, the most fertile land
+ is last brought under cultivation, because it is covered with swamps,
+ forests, etc.; and because it offers greater resistance to the work of the
+ agriculturist, by reason of its luxurious vegetation. The more elevated
+ lands are first cultivated which present fewer obstacles to cultivation on
+ account of their dryness, their thinner crust, etc. Carey generalizes this
+ and thinks he has reversed the <i>Ricardo</i> law of rent! He overlooks
+ entirely that <i>Ricardo</i> speaks only of the original powers of the
+ soil. Now a swampy land which must be dried at the expense of a great deal
+ of labor, possesses less of these original powers than a sandy soil which
+ may be sown immediately. See <i>Carey</i>, Essay on the Rate of Wages, 232
+ ff., and the lengthy exposition of the same doctrine rank with inexact
+ natural science and unhistorical history in the same author's Principles
+ of Social Science, 1858, vol. I.</p>
+
+ <p class="footnote">There is this much truth, however, in Carey's error
+ that, with increasing economic progress, the superiority not only of
+ situation, relatively to the market, but also of natural fertility, may of
+ itself go over to other lands. Thus, for instance, the ancient Slaves used
+ clay soil everywhere as pasturage, and cultivated the sandy soil, because
+ their pick-axes could overcome the resistance only of the latter.
+ <i>Langethal</i>, Geschicte der deutschen Landw., II, 66; <i>Waitz</i>,
+ Schlesw. Holstein, Gesch., I, 17. Similarly in Australia: <i>Hearne</i>,
+ Plutology, 1864. Compare, <i>Roscher</i>, Nationalökonomik des Ackerbaues,
+ § 34. The word fertility should not be taken too exclusively in its
+ present agricultural sense. In a lower stage of civilization, the facility
+ of military defense or the <i>ut fons, ut nemus
+ placuit</i>&mdash;<i>Tacit.</i>, Germ., 16&mdash;may have more weight.</p>
+
+ <p class="footnote">The chief difference in the theories of rent consists
+ in this: whether rent is considered a result of production or only of
+ distribution, and an equalization of gain. Compare <i>Behrens</i>, Krit.
+ Dogmengeschichte der Grundrente, 1868, 48.</p>
+
+<p class="p2 center"><a name="S155"></a>SECTION CLV.<span
+class='pagenum'>[Pg 26]</span></p>
+
+<p class="center smaller">HISTORY OF RENT.</p>
+
+<p>In poor nations, and in those in a low stage of civilization, <span
+class='pagenum'>[Pg 27]</span> especially where the population is sparse,
+rent is wont to be low. In Turkistan, land is valued according to the
+capital <span class='pagenum'>[Pg 28]</span> invested in its irrigation.<a
+name="fnanchor_155-1" id="fnanchor_155-1"></a><a href="#footnote_155-1"
+class="fnanchor">[155-1]</a> In the interior of Buenos Ayres, at the
+beginning of the nineteenth century, landed estates were paid for in
+proportion to the magnitude of the live stock on them, so that it seemed,
+at least, as if the land was given for nothing, or simply thrown in with
+the purchase. And only a short time since, an English acre in the same
+country, fifteen <i>leguas</i> from the capital, was worth from three to
+four pence, and at a distance of fifty <i>leguas</i>, only two pence.<a
+name="fnanchor_155-2" id="fnanchor_155-2"></a><a href="#footnote_155-2"
+class="fnanchor">[155-2]</a> In Russia, also, not long since, the valuation
+of landed estates was made, not in proportion to the superficies, but
+according to the number of souls, that is, of male serfs, a <i>remnant</i>
+suggestive of the previous situation when no rent was paid.<a
+name="fnanchor_155-3" id="fnanchor_155-3"></a><a href="#footnote_155-3"
+class="fnanchor">[155-3]</a> Where, in relatively uncivilized medieval
+times, instances of the farming out or leasing of land occur, farm-rents
+are so small that their payment can only be considered as a mere
+recognition of the owner's continuing right of property.</p>
+
+<p>Under these circumstances, it is natural that great landowners,
+especially in the lower stages of civilization, should exert an especially
+great influence; and that their low tenants (<i>Hintersassen</i>) are more
+dependent in proportion to the want of capital and the absence of trade.
+Hence, these are wont to make up for the smallness of their rent by great
+honors paid <span class='pagenum'>[Pg 29]</span> to their landlords, and
+great services, especially military service.<a name="fnanchor_155-4"
+id="fnanchor_155-4"></a><a href="#footnote_155-4" class=
+"fnanchor">[155-4]</a> Besides, the lords of the manor, in almost every
+medieval period, have used their influence with the government to cut down
+the wages of labor by serfdom and other similar institutions, and the rate
+of interest on capital by prohibiting interest, by usury laws, etc.; and
+thus, in both ways, to artificially increase their own share of the
+national income.</p>
+
+ <p class="footnote"> <a name="footnote_155-1" id="footnote_155-1"></a>
+ <a href="#fnanchor_155-1">[155-1]</a>
+ <i>A. Burnes</i>, Reise nach Bukhara, II, 238.</p>
+
+ <p class="footnote"> <a name="footnote_155-2" id="footnote_155-2"></a>
+ <a href="#fnanchor_155-2">[155-2]</a>
+ <i>W. Maccann</i>, Two Thousand Miles Ride through the Argentine
+ Provinces, London, 1853, I, 20; II, 143. Ausland, 1843, No. 140. Frisian
+ ancient documents in which parcels of land are described as <i>terræ 20
+ animalium, 48 animalium</i>, etc. <i>Lacomblet</i>, Urkundenbuch, I, 27.
+ <i>Kindlinger</i>, Münster Beitr., I, Urkundenbuch, 24.</p>
+
+ <p class="footnote"> <a name="footnote_155-3" id="footnote_155-3"></a>
+ <a href="#fnanchor_155-3">[155-3]</a>
+ The custom began to be more usual in Russia also to say "so many
+ <i>dessjatines</i> and the peasantry belonging thereto." This was
+ especially so in the case of very fertile land, as for instance in Orel.
+ See <i>v. Haxthausen</i>, Studien, II, 510. Formerly the bank loaned only
+ 250 per soul, afterwards up to 300 R. Bco. (II, 81). Spite of this <i>v.
+ Haxthausen</i> thinks that rent would be illusory, in Russia, in case
+ agriculture was carried on with hired workmen. (I, Vorrede, XIII.)
+ <i>Carey's</i> remark, "every one is familiar with the fact that farms
+ sell for little more than the value of the improvements," may be true of
+ the United States (The Past, Present and Future, 60.)</p>
+
+ <p class="footnote"> <a name="footnote_155-4" id="footnote_155-4"></a>
+ <a href="#fnanchor_155-4">[155-4]</a>
+ This condition of things continued in the highlands of Scotland until the
+ suppression of the revolt of 1745. The celebrated Cameron of Lochiel took
+ the field with 800 tenants, although the rent of the land was scarcely
+ £500. (<i>Senior</i>, Three Lectures on the Rate of Wages, 45.) "Poor
+ 12,000 pound sterling per annum nearly subverted the constitution of these
+ kingdoms!" (<i>Pennant.</i>)</p>
+
+<p class="p2 center"><a name="S156"></a>SECTION CLVI.</p>
+
+<p class="center smaller">INFLUENCE OF ADVANCING CIVILIZATION ON RENT.</p>
+
+<p>Advancing civilization contributes in three different ways to raise
+rents.<a name="fnanchor_156-1" id="fnanchor_156-1"></a><a href=
+"#footnote_156-1" class="fnanchor">[156-1]</a> The growth of population
+necessitates either a more <i>intensive</i> agriculture (higher farming),
+or causes it to extend over less fertile parcels of land, or parcels less
+advantageously situated.<a name="fnanchor_156-2" id="fnanchor_156-2"></a><a
+href="#footnote_156-2" class="fnanchor">[156-2]</a> If the growth of
+population be attended by an increase of capital, this happens in a still
+higher degree. The people now consume, if not more, at least wheat of finer
+quality, more and better fed live stock; the consequence of which is, that
+the demands made on the land are increased. Lastly, if the population be
+gradually concentrated in large cities, this fact also must contribute to
+raise rents, because it requires a multitude of costly transportations of
+agricultural produce and so increases the cost of production (up <span
+class='pagenum'>[Pg 30]</span> to the time of consumption) on the less
+advantageously situated land.<a name="fnanchor_156-3" id=
+"fnanchor_156-3"></a><a href= "#footnote_156-3" class=
+"fnanchor">[156-3]</a> <a name= "fnanchor_156-4" id="fnanchor_156-4"></a><a
+href="#footnote_156-4" class= "fnanchor">[156-4]</a></p>
+
+<p><span class='pagenum'>[Pg 31]</span>As most of the symptoms of a higher
+civilization become apparent earliest, and in the most striking manner, in
+large cities, so also a rise in rents is first felt in them. The building
+of houses may be considered as the most <i>intensive</i> of all cultivation
+of land and that which is most firmly fixed to the soil.<a name=
+"fnanchor_156-5" id="fnanchor_156-5"></a><a href="#footnote_156-5"
+class="fnanchor">[156-5]</a> Rent has nowhere an unsurpassable maximum any
+more than a necessary minimum.</p>
+
+ <p class="footnote"> <a name="footnote_156-1" id="footnote_156-1"></a>
+ <a href="#fnanchor_156-1">[156-1]</a>
+ <i>Jung</i>, Lehrbuch der Cameralpraxis, 1790, 182, has so little idea of
+ this that he is of opinion that farm-rent must grow ever smaller.</p>
+
+ <p class="footnote"> <a name="footnote_156-2" id="footnote_156-2"></a>
+ <a href="#fnanchor_156-2">[156-2]</a>
+ According to <i>Schmoller</i>, in the Mittheilungen des
+ landwirthschaftlich. Instituts zu Halle, 1865, 112 seq., the average
+ farm-rent of the Prussian domains per <i>morgen</i>, and the population to
+ the square mile, amounted:</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Average farm rent and population per square mile">
+
+<tr><td class="left"><i>District.</i></td>
+<td class="right"><i>1849.</i></td> <td class="right"><i>1864.</i></td>
+<td class="right"><i>1849.</i></td> <td class="right"><i>1858.</i></td></tr>
+
+<tr><td></td> <td class="center" colspan="2"><i>Thalers.</i></td>
+<td class="center" colspan="2"><i>Population<br />per sq. mi.</i></td></tr>
+
+<tr><td class="left">Königsberg,</td> <td class="center">0.73</td>
+<td class="center">1.16</td> <td class="center">2076</td>
+<td class="center">2298</td></tr>
+
+<tr><td class="left">Gumbinnen,</td> <td class="center">0.59</td>
+<td class="center">0.76</td> <td class="center">2059</td>
+<td class="center">2249</td></tr>
+
+<tr><td class="left">Danzig,</td> <td class="center">1.02</td>
+<td class="center">1.51</td> <td class="center">2656</td>
+<td class="center">2926</td></tr>
+
+<tr><td class="left">Marienwerder,</td> <td class="center">0.63</td>
+<td class="center">1.06</td> <td class="center">1944</td>
+<td class="center">2135</td></tr>
+
+<tr><td class="left">Posen,</td> <td class="center">0.69</td>
+<td class="center">1.07</td> <td class="center">2789</td>
+<td class="center">2857</td></tr>
+
+<tr><td class="left">Bromberg,</td> <td class="center">0.69</td>
+<td class="center">1.10</td> <td class="center">2116</td>
+<td class="center">2322</td></tr>
+
+<tr><td class="left">Stettin,</td> <td class="center">1.07</td>
+<td class="center">1.73</td> <td class="center">2355</td>
+<td class="center">2614</td></tr>
+
+<tr><td class="left">Cöslin,</td> <td class="center">0.83</td>
+<td class="center">1.30</td> <td class="center">1735</td>
+<td class="center">1940</td></tr>
+
+<tr><td class="left">Stralsund,</td> <td class="center">0.95</td>
+<td class="center">1.50</td> <td class="center">2347</td
+> <td class="center">2549</td></tr>
+
+<tr><td class="left">Breslau,</td> <td class="center">1.19</td>
+<td class="center">1.45</td> <td class="center">4733</td>
+<td class="center">5034</td></tr>
+
+<tr><td class="left">Liegnitz,</td> <td class="center">1.17</td>
+<td class="center">1.75</td> <td class="center">3676</td>
+<td class="center">3763</td></tr>
+
+<tr><td class="left">Oppeln,</td> <td class="center">0.86</td>
+<td class="center">1.20</td> <td class="center">3973</td>
+<td class="center">4433</td></tr>
+
+<tr><td class="left">Potsdam,</td> <td class="center">1.08</td>
+<td class="center">1.59</td> <td class="center">3317</td>
+<td class="center">3640</td></tr>
+
+<tr><td class="left">Frankfort,</td> <td class="center">1.29</td>
+<td class="center">2.00</td> <td class="center">2446</td>
+<td class="center">2660</td></tr>
+
+<tr><td class="left">Magdeburg,</td> <td class="center">2.31</td>
+<td class="center">2.98</td> <td class="center">3290</td>
+<td class="center">3508</td></tr>
+
+<tr><td class="left">Werseburg,</td> <td class="center">2.35</td>
+<td class="center">3.03</td> <td class="center">3934</td>
+<td class="center">4270</td></tr>
+
+<tr><td class="left">Erfurt,</td> <td class="center">2.04</td>
+<td class="center">2.55</td> <td class="center">5621</td>
+<td class="center">5735</td></tr>
+
+<tr><td class="left">Münster,</td> <td class="center">....</td>
+<td class="center">2.03</td> <td class="center">3192</td>
+<td class="center">3299</td></tr>
+
+<tr><td class="left">Minden,</td> <td class="center">2.48</td>
+<td class="center">2.62</td> <td class="center">4841</td>
+<td class="center">4808</td></tr>
+
+</table></div>
+
+ <p class="footnote">Compare the review of rents in the states of the
+ Zollverein, in <i>v. Viehbahn</i>, Statistik, II, 979. It is difficult<a
+ name= "fnanchor_TN5" id= "fnanchor_TN5"></a><a href= "#footnote_TN5"
+ class= "fnanchor">[TN 5]</a> to compare different countries with one
+ another in this respect, because it is seldom certain whether the word
+ rent means exactly the same thing in them. Besides, it should not be
+ overlooked, how difficult it is to ascertain what rent, in the strict
+ sense of the term, as used by <i>Ricardo</i>, is.</p>
+
+ <p class="footnote"> <a name="footnote_156-3" id="footnote_156-3"></a>
+ <a href="#fnanchor_156-3">[156-3]</a>
+ Moreover, the rise of rents, in so far as it depends on the greater cost
+ of transportation to a growing market, becomes progressively slower. The
+ concentric circles about that point increase in a greater ratio than the
+ radii.</p>
+
+ <p class="footnote"> <a name="footnote_156-4" id="footnote_156-4"></a>
+ <a href="#fnanchor_156-4">[156-4]</a>
+ As to the history of rents in England, a comparison of the years from 1480
+ to 1484, with the most recent times, shows that the amount of rent
+ estimated in money in agricultural districts, where no very great
+ "improvements" have been made, have increased as 1 to 80-100, while the
+ price of wheat has increased 12-fold and wages 10-fold. (<i>Rogers</i>, in
+ the Statist. Journal, 1864, 77.) According to <i>Hume</i>, History of
+ England, ch. 33, it seems that rents under Henry VIII. were only 1/10 of
+ those usually paid in his time, while the price of commodities was only ¼
+ of the modern. <i>Davenant</i>, Works, II, 217, 221, estimates the
+ aggregate rent of land, houses and mines, at the beginning of the
+ seventeenth century, at £6,000,000; about 1698, at £14,000,000;
+ capitalized respectively at £72,000,000 and £252,000,000. About 1714,
+ <i>J. Bellers</i>, Proposals for Employing the Poor, puts it at
+ £15,000,000; about 1726, <i>Erasm. Phillips</i>, State of the Nation in
+ Respect to Commerce etc., at £20,000,000; about 1771, <i>A. Young</i>, at
+ £16,000,000; about 1800, <i>Beeke</i>, Observations on the Income-Tax, at
+ £20,000,000; about 1804, <i>Wakefield</i>, Essay on Political Economy, at
+ £28,000,000; about 1838, <i>McCulloch</i>, Statist., I, 535, at
+ £29,500,000. The poor tax in England and Wales, in 1841, was on a
+ valuation of £32,655,000. (<i>Porter</i>, Progress, VI, 2, 614); 1864-5,
+ the annual value of lands, £46,403,853 (Stat. Journal, 1869.) Moreover,
+ the income from houses, railroads, etc. (real property other than lands),
+ increased very much more than that received from pieces of farming land;
+ between 1845 and 1864-5, the former by 392.8 per cent., and the latter by
+ 27.9 per cent. (<i>Hildebrand's</i> Jahrbb., 1869, II, 383 seq.); and the
+ income tax of 1857 on £47,109,000. There was a still more rapid growth of
+ rent in Scotland. In 1770, it was only £1,000,000-1,200,000: in 1795,
+ £2,000,000; in 1842, £5,586,000. (<i>McCulloch</i>, I, 576, ff.) In
+ Ireland, about 1776, it was only $900,000, according to <i>Petty</i>.
+ (Political Anatomy of Ireland, I, 113.) <i>A. Young</i> assumed it to be
+ £6,000,000 in 1778; <i>Newenham</i>, View of Ireland, about 1808,
+ £15,000,000. In many parts of the Rosendale Forest in Lancashire, the land
+ is leased by the ell, at £121, and even at £131 per acre; i. e., more than
+ the whole forest of 15,300 acres was rented for in the time of James I. In
+ many of the moorland portions of Lancashire, rent has risen in 150 years,
+ 1,500 and even 3,000 per cent. (Edinburg Rev., 1843, Febr., 223.)</p>
+
+ <p class="footnote">The amount of rents in Prussia, <i>Krug</i> assumed to
+ be in 1804, 50,000,000 thalers, and <i>von Viebahn</i>, Zollverein
+ Statistik, II, 974, in 1862, 116,500,000 thalers. <i>Lavergne</i> assumed
+ the rents of France after 1850 to be 1,600,000,000 francs (Revue des deux
+ Mondes, Mars, 1868); and <i>Dutot</i>, Journal des Economistes, Juin,
+ 1870, in 1870, at 2,000,000,000. In Norway, the capitalized value of all
+ the land was assessed at 13,000,000,000 thalers in specie, in 1665; in
+ 1802, at 25,500,000; in 1839, at 64,000,000 thalers. <i>Blom</i>,
+ Statistik von Norwegen, I, 145. The older such estimates are, the more
+ unreliable they are.</p>
+
+ <p class="footnote"> <a name="footnote_156-5" id="footnote_156-5"></a>
+ <a href="#fnanchor_156-5">[156-5]</a>
+ In Paris, in 1834, the square <i>toise</i> = 37 sq. feet, in the Rue
+ Richelieu and Rue St. Honoré, cost 1,500 to 2,000 francs; in Rue neuve
+ Vivienne, 2,500 to 3,500 francs; in 1857, from 200 to 500 francs per
+ square meter, = 10 sq. feet, was very usual. (<i>Wolowski</i>.) Before the
+ gates of Paris, the rent amounted to as high as 250 francs per
+ <i>hectare</i>; at Fontainebleau, to only from 30 to 40. (Journal des
+ Economistes, Mars, 1856, 337.) In Market Square, Philadelphia, land was
+ worth from 3,000 to 4,000 francs per sq. <i>toise</i>, and in Wall Street,
+ New York, about 4,000 francs. (<i>M. Chevalier</i>, Letters sur
+ l'Amérique, 1836, I, 355.) In St. Petersburg, after 6 years, the house
+ frequently falls to the owner of the area. (<i>Storch.</i> by <i>Rau</i>,
+ I, 248 f.) In Manchester, the Custom House area cost from 10 to 12 pounds
+ sterling per square yard; in the center of the city, as high of £40, that
+ is, nearly £200,000 per acre. In Liverpool, in the neighborhood of the
+ Exchange and of Town Hall, the cost is from 30 to 40 pounds sterling.
+ (Athenæum, Dec. 4, 1852.) In London, a corner building on London street,
+ erected for £70,000, with only three front windows, pays a rental of
+ £22,000. (Allg. Zeitung, 1 Febr., 1866.) The villa at Misenum&mdash;a very
+ beautiful location&mdash;which the mother of the Gracchi bought for about
+ 5,000 thalers, came into the possession of L. Lucullus, consul in the year
+ B. C. 74, for about 33 times as much. <i>Mommsen</i>, Römisch. Gesch., II,
+ 382.</p>
+
+<p class="p2 center"><a name="S157"></a>SECTION CLVII.<span
+class='pagenum'>[Pg 32]</span></p>
+
+<p class="center smaller">HISTORY OF RENT.&mdash;IMPROVEMENTS IN THE ART OF
+AGRICULTURE.</p>
+
+<p>Improvements in the art of agriculture which are confined to individual
+husbandmen leave rent unaffected. They do not perceptibly lower the price
+of agricultural products, and only effect an increase of the reward of
+enterprise which is entirely personal to the more skillful producers and
+does not attach to the ground itself.</p>
+
+<p>But how is it when these improvements become general throughout the
+country? If population and consumption remain unchanged, the supply of
+agricultural products will exceed the demand. This would compel farmers, if
+there be no avenue open to exports, to curtail their production. The least
+fertile and most disadvantageously situated parcels of land will be
+abandoned to a greater or less extent, and the least productive capital
+devoted to agriculture, withdrawn. In this way, rent goes down both
+relatively and absolutely, although the owners of land may be able to
+partially cover their loss by the gain which results to them as consumers
+and capitalists.<a name="fnanchor_157-1" id="fnanchor_157-1"></a><a
+href="#footnote_157-1" class="fnanchor">[157-1]</a> (§ 186). After a time,
+however, and as a consequence <span class='pagenum'>[Pg 33]</span> of the
+diminished price of corn, population and consumption will increase, and
+entail an extension of agriculture and a consequent rise in rents.<a
+name="fnanchor_157-2" id="fnanchor_157-2"></a><a href="#footnote_157-2"
+class="fnanchor">[157-2]</a> If it, relatively speaking, reaches the same
+point as before, it still is absolutely much greater than before. Let us
+suppose that there are three classes <span class='pagenum'>[Pg 34]</span>
+of land of equal extent in a country, which for an equal outlay of capital
+produce 100,000, 80,000 and 70,000 bushels yearly. The rent of the land
+here would be equal to at least 40,000 bushels. If the yield of production
+now doubles, while the demand for agricultural products also doubles, the
+aggregate harvest will be 200,000 + 160,000 + 140,000 bushels, and
+consequently rent will have risen to at least 80,000 bushels. But this
+increase of rent has injured no one. If the population increases in a less
+degree than the productiveness of the land, the consumer may, to a certain
+extent, gain largely, and the landowner better his condition. However,
+great agricultural improvements spread so gradually over a country, that,
+as a rule, the demand for agricultural products can keep pace with the
+increased supply. But even in this case, that transitory absolute decline
+of rent may be avoided; and it cannot be claimed universally, as it is by
+many who are satisfied with mumbling Ricardo's words after him, that an
+increase of rent is possible only by an enhancement of the price of the
+products of the soil. Where the development of a people's economy is a
+normal one, the rent of land is wont to increase gradually, but at the same
+time to constitute a diminishing quota of the entire national income.<a
+name="fnanchor_157-3" id="fnanchor_157-3"></a><a href="#footnote_157-3"
+class="fnanchor">[157-3]</a></p>
+
+<p>Improvements in milling,<a name= "fnanchor_157-4" id=
+"fnanchor_157-4"></a><a href= "#footnote_157-4" class=
+"fnanchor">[157-4]</a> and in the instruments of transportation<a name=
+"fnanchor_157-5" id= "fnanchor_157-5"></a><a href= "#footnote_157-5"
+class= "fnanchor">[157-5]</a> <span class='pagenum'>[Pg 35]</span> adapted
+to agricultural products, and the introduction of cheaper<a
+name="fnanchor_157-6" id="fnanchor_157-6"></a><a href="#footnote_157-6"
+class="fnanchor">[157-6]</a> food, have the same effect as improvements of
+agricultural production. All such steps in advance render an increase in
+population, or in the nation's resources, possible without any
+corresponding increase in the amount paid to landowners as tribute money.<a
+name="fnanchor_157-7" id="fnanchor_157-7"></a><a href="#footnote_157-7"
+class="fnanchor">[157-7]</a></p>
+
+<p><span class='pagenum'>[Pg 36]</span>The foregoing facts furnish us the
+data necessary to decide what influence permanent soil improvements have on
+the rent of land.<a name="fnanchor_157-8" id="fnanchor_157-8"></a><a
+href="#footnote_157-8" class="fnanchor">[157-8]</a> The improved
+parcels of land now grow more fertile. Their rentability also increases,
+while that of the others becomes not only relatively but absolutely less,
+if the demand remains unaltered. The whole is as if capital had been
+transformed into fertile land, and this added to the improved land.</p>
+
+ <p class="footnote"> <a name="footnote_157-1" id="footnote_157-1"></a>
+ <a href="#fnanchor_157-1">[157-1]</a>
+ Since it has seemed absurd to many writers to say that an improvement in
+ the art of agriculture may cause rents to decline (compare <i>Malthus</i>,
+ Principles, I, ch. 3, 8), <i>John Stuart Mill</i>, Principles, IV, ch. 3,
+ § 4, prefers to put the question thus: whether the landowner is not
+ injured by the improvement of the estates of other people, although his
+ own is included in the improvement. Compare <i>Davenant</i>, Works, I,
+ 361. And so the long agricultural crisis through which Germany passed at
+ the beginning of the third decade of this century was produced mainly by
+ the great impulse given to agriculture (<i>Thaer</i>, <i>Schuerz</i>
+ etc.), while population did not keep pace with it. Similarly, at the same
+ time, in England, <i>McCulloch</i>, Stat., I, 557 ff. Of course, the less
+ fertile pieces of land declined even relatively most in price. From 1654
+ to 1663, Switzerland experienced a severe agricultural crisis, attended
+ with oppressive cheapness of corn, a great decline in the price of land,
+ innumerable cases of insolvency, revolts of the peasantry, emigration,
+ etc. (<i>Meyer von Knonau</i>, Handbuch d. schweiz. Gesch., II, 43.) The
+ Swiss had, precisely during the Thirty Years' War which spared them, so
+ extensively developed their agricultural interests, that now that other
+ countries began to compete with them, they could not find a market large
+ enough for their products. For English instances of similar "agricultural
+ distress" in the seventeenth and eighteenth centuries, see <i>Child</i>,
+ Discourse on Trade, 73, 124 seq.; <i>Temple</i>, Observations upon the U.
+ P., ch. 6; <i>Tooke</i>, History of Prices, I, 23 seq., 42. Even where
+ there have been no technic improvements, a series of unusually good
+ harvests may have the same results, of which there are many instances
+ scattered through <i>Tooke's</i> first volume.</p>
+
+ <p class="footnote">There is great importance attached in England to the
+ difference between those agricultural reforms which save land and those
+ which effect a saving in capital and labor. The latter, it is said,
+ decrease the money rent of the landowner by depreciating the price of
+ corn, but leave the corn-rent unaltered. The former, on the other hand,
+ decrease the rent both in money and corn, but the money rent in a higher
+ degree. (<i>Ricardo</i>, Principles, ch. 2; <i>J. S. Mill</i>, Principles,
+ IV, ch. 3, 4.)</p>
+
+ <p class="footnote"> <a name="footnote_157-2" id="footnote_157-2"></a>
+ <a href="#fnanchor_157-2">[157-2]</a>
+ When the demand for products of the soil which minister to luxury, such as
+ fat meat, milk, vegetables, is increasing, a greater cheapness of the
+ necessary wheat may raise rent, for the reason that lands are now
+ cultivated which were not formerly tillable. Thus, there is now land in
+ Lancashire which could not formerly be planted with corn, because the
+ laborers would have consumed more than the harvest yielded. Since the
+ large imports of the means of subsistence from Ireland these lands have
+ been transformed into artificial meadows, gardens, etc. (<i>Torrens</i>,
+ The Budget, 180 ff.) Compare <i>Adam Smith</i>, I, 257, ed. Bas.
+ <i>Banfield</i> would misuse these facts to overturn the theory of
+ Ricardo. (Organization of Industry, 1848, 49 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_157-3" id="footnote_157-3"></a>
+ <a href="#fnanchor_157-3">[157-3]</a>
+ The French testamentary tax was on an amount,</p>
+
+<div> <table class="fn" border="0" cellpadding="5" summary="French
+testamentary tax">
+
+<tr><td></td><td class="center" colspan="2">moveable property</td>
+<td class="center" colspan="2">immoveable.</td></tr>
+
+<tr><td class="left">In 1835, of</td> <td class="right">552</td>
+<td class="right">mill. francs and</td>
+<td class="right">984</td> <td class="right">mill.</td></tr>
+
+<tr><td class="left">In 1853, of</td> <td class="right">820</td>
+<td class="center">"</td> <td class="right">1,176</td>
+<td class="center">"</td></tr>
+
+<tr><td class="left">In 1860, of</td> <td class="right">1,179</td>
+<td class="center">"</td> <td class="right">1,545</td>
+<td class="center">"</td></tr>
+
+</table></div>
+
+ <p class="footnote">so that the preponderance of immoveable property
+ constituted a converging series of 78, 43, and 31 per cent.
+ (<i>Parieu.</i>) In North America, with its great unoccupied territory,
+ the reverse is the case. The census of 1850 gave a moveable property of 36
+ per cent.; that of 1860 of only 30 per cent. According to <i>Dubost</i>,
+ the rent of land in Algeria was 80 per cent., a gross product of only
+ 10-15 francs per <i>hectare</i>; in Corsica, 66 per cent., a gross yield
+ of from 30-35 per cent.; in the Department du Nord, 17.5-24 per cent., a
+ gross yield of from 500-740 francs. (Journal des Economistes, Juin, 1870,
+ 336 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_157-4" id="footnote_157-4"></a>
+ <a href="#fnanchor_157-4">[157-4]</a>
+ The repeated sifting of the bran (<i>mouture économique</i>) had great
+ influence in this respect. In France, in the sixteenth century, a
+ <i>setier</i> of wheat gave only 144 pounds of bread. In 1767, according
+ to <i>Malouin</i>, L'Art du Bonlanger, it gave 192 pounds. It now gives
+ from 223 to 240 pounds. The gain in barley is still greater; the
+ <i>setier</i> gives 115 pounds of flour, formerly only 58.
+ (<i>Roquefort</i>, Histoire de la Vie Privée des Français, I, 72 ff.
+ <i>Beckmann</i>, Beitr. zur Gesch. der Erfind., II, 54.)</p>
+
+ <p class="footnote"> <a name="footnote_157-5" id="footnote_157-5"></a>
+ <a href="#fnanchor_157-5">[157-5]</a>
+ In the beginning of the eighteenth century, the counties in the
+ neighborhood of London addressed a petition to Parliament against the
+ extension of the building of turnpike roads which caused their rents to
+ decline, from the competition of distant districts. (<i>Adam Smith</i>,
+ Wealth of Nat., I, ch. 11, 1.) Compare <i>Sir J. Stewart</i>, Principles,
+ I, ch. 10. Improvements in transportation which affect the longest and
+ shortest roads to a market in an absolutely equal degree, as, for
+ instance, the bridging of a river very near the market, leave rent
+ unaffected. (<i>von Mangoldt</i>, V. W. L., 480.)</p>
+
+ <p class="footnote"> <a name="footnote_157-6" id="footnote_157-6"></a>
+ <a href="#fnanchor_157-6">[157-6]</a>
+ <i>Malthus</i>, Principles, 231 ff. If the laboring class were to become
+ satisfied with living on potatoes instead of meat and bread as hitherto,
+ rents would immediately and greatly fall, since the necessities of the
+ people might then be obtained from a much smaller superficies. But after a
+ time, the consequent increase in population might lead to a much higher
+ rent than before; since a great deal of land too unfertile for the
+ cultivation of corn might be sown with potatoes, and thus the limits of
+ cultivation be reached much later.</p>
+
+ <p class="footnote"> <a name="footnote_157-7" id="footnote_157-7"></a>
+ <a href="#fnanchor_157-7">[157-7]</a>
+ In France, between 1797 and 1847, the average price of wheat did not rise
+ at all. <i>Hipp. Passy</i> mentions pieces of land which produced scarcely
+ 12 hectolitres of wheat, but which now produce 20&mdash;an increased yield
+ of 170 francs, attended by an increase in the cost of only 75 francs.
+ (Journal des Economistes, 15 Oct., 1848.) Moreover, it may be that a not
+ unimportant part of modern rises in the price of corn may be accounted for
+ by the better quality of the corn caused by higher farming. (<i>Inama
+ Sternbeg</i>, Gesch. der Preise, 10 seq.) Such facts, readily explainable
+ by <i>Ricardo's</i> theory, remove the objection of <i>Carey</i>,
+ <i>Banfield</i> and others, that the condition of the classes who own no
+ land has, since the middle ages, unquestionably improved. Political
+ Economy would be simply a theory of human degradation and impoverishment,
+ if the law of rent was not counteracted by opposing causes.  (<i>Rœsler</i>,
+ Grundsätze, 210.) According to <i>Berens</i>, Krit. Dogmengeschichte, 213,
+ the actual highness of rent is to be accounted for by the antagonism
+ between the "soil-law (<i>Bodengesetz</i>) of the limited power of
+ vegetation," and the "progress of civilization" (but surely only to the
+ extent that the latter improves the art of agriculture). Thus, too,
+ <i>John Stuart Mill</i>, Principles, I, ch. 12; II, ch. 11, 15 seq.; III,
+ ch. 4 seq.; IV, ch. 2 ff.</p>
+
+ <p class="footnote"> <a name="footnote_157-8" id="footnote_157-8"></a>
+ <a href="#fnanchor_157-8">[157-8]</a>
+ Thus, for instance, drainage works which, where properly directed, have
+ paid an interest of from 25 to 70 per cent. per annum in England and
+ Belgium on the capital invested.</p>
+
+<p class="p2 center"><a name="S158"></a>SECTION CLVIII.</p>
+
+<p class="center smaller">HISTORY OF RENT.&mdash;IN PERIODS OF DECLINE.</p>
+
+<p>If a nation's economy be declining, in consequence of war for instance,
+the disastrous influence hereof on rent may be retarded by a still greater
+fall in wages or in the profit on capital. But it can be hardly retarded
+beyond a certain point.<a name="fnanchor_158-1" id="fnanchor_158-1"></a><a
+href="#footnote_158-1" class="fnanchor">[158-1]</a> <span class=
+'pagenum'>[Pg 37]</span> As a rule, the decline of rents begins to be felt
+by the least fertile and least advantageously situated land.<a name=
+"fnanchor_158-2" id="fnanchor_158-2"></a><a href="#footnote_158-2"
+class="fnanchor">[158-2]</a> <a name="fnanchor_158-3" id="fnanchor_158-3">
+</a><a href="#footnote_158-3" class="fnanchor">[158-3]</a></p>
+
+ <p class="footnote"> <a name="footnote_158-1" id="footnote_158-1"></a>
+ <a href="#fnanchor_158-1">[158-1]</a>
+ "The falling of rents an infallible sign of the decay of wealth."
+ (<i>Locke.</i>) In England, in 1450, land was bought at "14 years'
+ purchase;" i. e., with a capital = 14 times the yearly rent paid, in 1470,
+ at only "10 years' purchase." (<i>Eden</i>, State of the Poor, III, App.,
+ I, XXXV.) This was, doubtless, a consequence of the civil war raging in
+ the meantime. The American war (1775-82) depressed the price of land in
+ England to "23¼ years' purchase," whereas it had previously stood at 32.
+ (<i>A. Young.</i>) The rent of land, in many places in France, declined
+ from 10,000 to 2,000 livres, on account of the many wars during Louis
+ XIV.'s reign. (<i>Madame de Sévigné's</i> Lettres, 25 Dec, 1689.) Even in
+ 1677, it was only one-half of its former amount (<i>King</i>, Life of
+ Locke, I, 129.) The whole Bekes county (<i>comitat</i>) in Hungary was
+ sold for 150,000 florins under Charles VI.; after the unfortunate war with
+ France. (<i>Mailath</i>, Oesterreich, Gesch., IV, 523.) Compare
+ <i>Cantillon</i>, Nature du Commerce, 248. In Cologne, a new house was
+ sold in the spring of 1848 for 1,000 thalers, the site of which alone had
+ cost 3,000 thalers; and there are six building lots which formerly cost
+ over 3,000 thalers, now valued at only 100 thalers. (<i>von Reden</i>,
+ Statist. Zeitschr., 1848, 366.) On the other hand, Napoleon's war very
+ much enhanced English rents (<i>Porter</i>, Progress of the Nation, II, 1,
+ 150 ff.), because it affected England's national husbandry principally by
+ hindering the importation of the means of subsistence. (<i>Passy</i>,
+ Journal des Economistes, X, 354.)</p>
+
+ <p class="footnote"> <a name="footnote_158-2" id="footnote_158-2"></a>
+ <a href="#fnanchor_158-2">[158-2]</a>
+ Thus the price of lands, in Mecklenburg, between 1817 and 1827, fell 30 to
+ 40 per cent. in the least fertile quarters; in the better, from 15 to 20
+ per cent. (<i>von Thünen</i>, in <i>Jacob</i>, Tracts relating to the Corn
+ Trade, 40, 187.) <i>Per contra</i>, see Hundeshagen Landwirthsch.
+ Gewerbelehre, 1839, 64 seq., and <i>Carey</i>, Principles, I, 354.</p>
+
+ <p class="footnote"> <a name="footnote_158-3" id="footnote_158-3"></a>
+ <a href="#fnanchor_158-3">[158-3]</a>
+ The average rent in England was, in 1815, 17s. 3d. In the counties, it was
+ highest in Middlesex, 38s. 9d.; in Rutland, 38s. 2d.; Leicester, 27s. 3d.;
+ lowest in Westmoreland, 9s. 1d. In Wales, the average was 7s. 10d.;
+ highest in Anglesea, 19s.; lowest in Merioneth, 4s. 8d. In Scotland the
+ average was 5s. 1½d.; highest, Midlothian, 24s. 6½d.; lowest, Highland
+ Caithness, Cromarthy, Inverness and Rosse, from 1s. 1d. to 1s. 5d.;
+ Orkneys, 8½d.; Sutherland, 6d.; Shetlands, 3d. In Ireland, the average was
+ 12s. 9d.; highest in Dublin, 20s. 1½d.; lowest, Donegal, 6s.
+ (<i>McCulloch</i>, Stat., I, 544 ff.; Yearbook of general Information,
+ 1843, 193.) In France, <i>Chaptal</i>, De l'Industrie Fr., 1819, I, 209
+ ff., estimates the average yield per <i>hectare</i> at 28 francs; in the
+ Department of the Seine, 216; Nord, 69.56; Lower Seine, 67.85; in the
+ upper Alps, 6.2; in the lower Alps, 5.99: in the Landes, 6.25. While in
+ the Landes, only 20 francs a <i>hectare</i> are frequently paid, the
+ purchase price in the neighboring Medoc is sometimes 25,000 francs.
+ (Journal des Economistes, Jan. 15, 1851.) In Belgium, the average price of
+ agricultural land is 52.46; in East Flanders, 53.19; in Namur, 29.24.
+ (<i>Heuschling</i>, Statistique, 77.)</p>
+
+<p class="p2 center"><a name="S159"></a>SECTION CLIX.</p>
+
+<p class="center smaller">HISTORY OF RENT.&mdash;RENT AND THE GENERAL
+GOOD.</p>
+
+<p>We so frequently hear rent called the result of the monopoly<a
+name="fnanchor_159-1" id="fnanchor_159-1"></a><a href="#footnote_159-1"
+class="fnanchor">[159-1]</a> of land, and an undeserved tribute paid by the
+whole people to landowners, that it is high time we should call attention
+to the common advantage it is to all. There is evidently danger that, with
+the rapid growth of population, the <span class='pagenum'>[Pg 38]</span>
+mass of mankind should yield to the temptation of gradually confining
+themselves to the satisfaction of coarse, palpable wants; that all refined
+leisure, which makes life and the troubles that attend it worth enduring,
+and which is the indispensable foundation of all permanent progress and all
+higher activity, should be gradually surrendered. (See § 145.) Here rent
+constitutes a species of reserve fund, which grows greater in proportion as
+these dangers impend by reason of the decline of wages and of the profit of
+capital, or interest.<a name="fnanchor_159-2" id="fnanchor_159-2"></a><a
+href="#footnote_159-2" class="fnanchor">[159-2]</a> Besides, precisely in
+times when rent is high, the sale and divisibility of landed estates act as
+a beneficent reaction against the monopoly of land, which is always akin to
+the condition of things created by rent.</p>
+
+<p>But it is of immeasurably greater importance that high rents deter the
+people from abusing the soil in an anti-economic way; that they compel men
+to settle about the centers of commerce, to improve the means of
+transportation, and under certain circumstances to engage in the work of
+colonization; while, otherwise, idleness would soon reconcile itself to the
+heaping together of large swarms of men.<a name="fnanchor_159-3" id=
+"fnanchor_159-3"></a><a href="#footnote_159-3" class="fnanchor">[159-3]</a>
+The anticipation of rent may render possible the construction of railroads,
+which enable the land to yield that very anticipated rent.</p>
+
+ <p class="footnote"> <a name="footnote_159-1" id="footnote_159-1"></a>
+ <a href="#fnanchor_159-1">[159-1]</a>
+ "Rent is a tax levied by the landowners as monopolists." (<i>Hopkins</i>,
+ Great Britain for the last forty Years, 1834.) For a very remarkable armed
+ and successful resistance of farmers in the state of New York to the
+ claims for rent of the Rensselaer family, represented by the government,
+ see <i>Wappäus</i> Nord Amerika, 734.</p>
+
+ <p class="footnote"> <a name="footnote_159-2" id="footnote_159-2"></a>
+ <a href="#fnanchor_159-2">[159-2]</a>
+ <i>Malthus</i>, Additions to the Essay on Population, 1817, III, ch. 10;
+ compare also <i>Verri</i>, Meditazioni, XXIV, 3. The Physiocrates call the
+ landowners <i>classe disponible</i>, since, as they may live without
+ labor, they are best adapted to military service, the civil service, etc.,
+ either in person or by defraying the expenses of those engaged in them.
+ (<i>Turgot</i>, Sur la Formation etc., § 15; Questions sur la Chine,
+ 5.)</p>
+
+ <p class="footnote"> <a name="footnote_159-3" id="footnote_159-3"></a>
+ <a href="#fnanchor_159-3">[159-3]</a>
+ Well discussed by <i>Schäffle</i>, Theorie, 65, 72, 83. <i>Malthus</i>
+ considers the capital and labor expended in agriculture more productive
+ than any other, because they produce not only the usual interest and
+ wages, but also rent. If, therefore, the manufacturing and commercial
+ profit of a country = 12 per cent., and the profit of capital employed in
+ agriculture = 10 per cent., a corn law which compelled the capital engaged
+ in manufactures and commerce to be devoted to agriculture would be
+ productive of advantage to the national husbandry in general, if the
+ increase in rent should amount to about 3 per cent. (On the Effects of the
+ Corn Laws and of a Rise or Fall in the Price of Corn on the Agriculture
+ and the general Wealth of the Country, 1815. The Grounds of an Opinion on
+ the Policy of Restricting the Importation of Foreign Corn, 1815.) Compare
+ <i>supra</i>, § 55, and the detailed rectification in <i>Roscher</i>,
+ Nationalökonomik des Ackerbaues, etc., § 159 ff.</p>
+
+<p><span class='pagenum'>[Pg 39]</span></p>
+
+<h3 class="p4">CHAPTER III.</h3>
+
+<h3>WAGES.</h3>
+
+<p class="p2 center"><a name="S160"></a>SECTION CLX.</p>
+
+<p class="center smaller">THE PRICE OF COMMON LABOR.</p>
+
+<p>Like the price of every commodity, the immediate wages of common labor
+is determined by the relation of the demand and supply of labor. Other
+circumstances being the same, every great plague<a name="fnanchor_160-1"
+id="fnanchor_160-1"></a><a href="#footnote_160-1" class=
+"fnanchor">[160-1]</a> or emigration<a name="fnanchor_160-2" id=
+"fnanchor_160-2"></a><a href="#footnote_160-2" class="fnanchor">[160-2]</a>
+is wont, by decreasing the supply, to increase the wage's of labor; and a
+plague, the wages of the lowest kind of labor most.<a name="fnanchor_160-3"
+id="fnanchor_160-3"></a><a href="#footnote_160-3" class=
+"fnanchor">[160-3]</a> And so, the increased <span class='pagenum'>[Pg
+40]</span> demand, in harvest time, is wont to increase wages; and even day
+board during harvest time is wont to be better.<a name="fnanchor_160-4"
+id="fnanchor_160-4"></a><a href="#footnote_160-4" class=
+"fnanchor">[160-4]</a> <a name="fnanchor_160-5" id="fnanchor_160-5"></a><a
+href="#footnote_160-5" class="fnanchor">[160-5]</a> In winter the
+diminished demand lowers wages again.<a name="fnanchor_160-6"
+id="fnanchor_160-6"></a><a href="#footnote_160-6" class=
+"fnanchor">[160-6]</a> Among the most effective tricks of socialistic
+sophistry is, unfortunately, to caricature the correct principle: "labor is
+a commodity," into this other: "the laborer is a commodity."</p>
+
+<p>Moreover, common labor has this peculiarity, that those who have it to
+supply are generally much more numerous than those who want it; while the
+reverse is the case with most other commodities. Another important
+peculiarity of the "commodity" labor, is, that it can seldom be bought,
+without at the same time reducing the person of the seller to a species of
+dependence. Thus, for instance, the seller cannot <span class='pagenum'>[Pg
+41]</span> be in a place different from that in which his commodity is.
+Hence a change in the person, etc. of the buyer very readily necessitates
+in the workman a radical change of life, and that the levelling adjustment
+of local excess and want is rendered so difficult in the case of this
+commodity.<a name="fnanchor_160-7" id="fnanchor_160-7"></a><a
+href="#footnote_160-7" class="fnanchor">[160-7]</a> Hence, it is that, if
+in the long run the exchange of labor against wages is to be an equitable
+one (§ 110), the master of labor must, so to speak, incorporate part of his
+own personality into it, have a heart for faithful workmen and thus attach
+them to himself.<a name="fnanchor_160-8" id="fnanchor_160-8"></a><a
+href="#footnote_160-8" class="fnanchor">[160-8]</a></p>
+
+ <p class="footnote"> <a name="footnote_160-1" id="footnote_160-1"></a>
+ <a href="#fnanchor_160-1">[160-1]</a>
+ High rate of Italian wages after the plague in 1348, but also many
+ complaints of the indolence and dissoluteness of workmen. (<i>M.
+ Villani</i>, I, 2 ff., 57 seq. <i>Sismondi</i>, Gesch. der ital.
+ Republiken in Mittelalter, VI, 39.) In England, the same plague increased
+ the wages of threshers from an average of 1.7 d. in 1348, to 3.3 d. in
+ 1349. Mowers received, during the 90 years previous, 1/12 of a quarter of
+ wheat per acre; in 1371-1390, from 1/7 to 1/6. The price of most of their
+ wants was then from 1/8 to 1/12 as high as in <i>A. Young's</i> time, and
+ wages ¼ as high. (<i>Rogers</i>, I, 306, 271, 691.) The great earthquake
+ in Calabria, in 1783, produced similar effects. (<i>Galanti</i>, N.
+ Beschreiburg von Neapel, I, 450.) Compare <i>Jesaias</i>, 13, 12. On the
+ other hand, depopulation caused by unfortunate wars is not very favorable
+ to the rate of wages; instance, Prussia in 1453 ff., after the Polish
+ struggle, and Germany, after the Thirty Years' War.</p>
+
+ <p class="footnote"> <a name="footnote_160-2" id="footnote_160-2"></a>
+ <a href="#fnanchor_160-2">[160-2]</a>
+ How much it contributes to raise wages that workmen can, in a credible
+ way, threaten to move to other places, is illustrated by the early high
+ wages and personal freedom of sailors. Compare <i>Eden</i>, State of the
+ Poor, I, 36. In consequence of the recent great emigration from Ireland,
+ the weekly wages of farm hands in that country was 57.4 per cent. higher
+ than in 1843-4. In Connaught, where the emigration was largest, it was 87
+ per cent. higher. (London Statist. Journ., 1862, 454.)</p>
+
+ <p class="footnote"> <a name="footnote_160-3" id="footnote_160-3"></a>
+ <a href="#fnanchor_160-3">[160-3]</a>
+ Compare <i>Rogers</i>, I, 276, and <i>passim</i>.</p>
+
+ <p class="footnote"> <a name="footnote_160-4" id="footnote_160-4"></a>
+ <a href="#fnanchor_160-4">[160-4]</a>
+ And this in proportion as the uncertainty of the weather causes haste. In
+ England, the harvest doubles wages. (<i>Eden.</i>) In East Friesland, it
+ raises it from 8-10 ggr. to 2 thalers sometimes (<i>Steltzner</i>); in the
+ steppes of southern Russia, from 12-15, to frequently 40-50 <i>kopeks</i>.
+ This explains why the country people who come into the weekly market are
+ anxious, during harvest time, to get rid of their stocks as fast as
+ possible. According to the Statist. Journal, 1862, 434, 448, the average
+ wages in harvest and other times, amounted to:</p>
+
+<div> <table class="fn" border="0" cellpadding="5" summary="Wages in
+harvest and other times">
+
+<tr><td></td> <td></td> <td></td> <td class="center" colspan="2"><i>In
+harvest time.</i></td> <td class="center" colspan="2"><i>Other
+times.</i></td></tr>
+
+<tr><td class="left">In Scotland</td> <td class="center">for</td> <td
+class="left0">males,</td> <td class="right">18s.</td> <td
+class="left0">7d.</td> <td class="right">12s.</td> <td
+class="left0">11½d.</td></tr>
+
+<tr><td class="center">"</td> <td class="center">"</td> <td
+class="left0">females,</td> <td class="right">11s.</td> <td
+class="left0">4d.</td> <td class="right">5s.</td> <td
+class="left0">7d.</td></tr>
+
+<tr><td class="left">In Ireland</td> <td class="center">"</td> <td
+class="left0">males,</td> <td class="right">12s.</td> <td
+class="left0">9d.</td> <td class="right">6s.</td> <td
+class="left0">11½d.</td></tr>
+
+<tr><td class="center">"</td> <td class="center">"</td> <td
+class="left0">females,</td> <td class="right">8s.</td> <td
+class="left0">3d.</td> <td class="right">3s.</td> <td
+class="left0">9d.</td></tr>
+
+<tr><td class="center">"</td> <td class="center">"</td> <td
+class="left0">males,</td> <td class="right">15s.</td> <td
+class="left0">4d.</td> <td class="right">7s.</td> <td
+class="left0">1¼d.</td></tr>
+
+<tr><td class="center">"</td> <td class="center">"</td> <td
+class="left0">females,</td> <td class="right">7s.</td> <td
+class="left0">1¾d.</td> <td class="right">3s.</td> <td
+class="left0">11d.</td></tr>
+
+</table></div>
+
+ <p class="footnote">The reason why the wages of females rises more in
+ harvest time than the wages of males may be the same that in many places
+ in Ireland has made emigration more largely increase the wages of women.
+ (l. c., 454.) Every excess of workmen depresses, and every scarcity of
+ workmen enhances the wages of the lowest strata relatively most.</p>
+
+ <p class="footnote"> <a name="footnote_160-5" id="footnote_160-5"></a>
+ <a href="#fnanchor_160-5">[160-5]</a>
+ The wages of English sailors was usually 40-50 shillings a month. During
+ the last naval war, it rose to from 100 to 120, on account of the great
+ demand created by the English fleet. (<i>McCulloch</i>, On Taxation,
+ 40.)</p>
+
+ <p class="footnote"> <a name="footnote_160-6" id="footnote_160-6"></a>
+ <a href="#fnanchor_160-6">[160-6]</a>
+ The winter wages of German agricultural laborers varies between 6.1 and 20
+ silver groschens; summer wages between 7.9 and 27.5 silver groschens.
+ <i>Emminghaus</i>, Allg. Gewerbelehre, 81, therefore, advises that in
+ winter the meal time of workmen in the fields should be postponed to the
+ end of the day, and winter wages then made less low than at present.</p>
+
+ <p class="footnote"> <a name="footnote_160-7" id="footnote_160-7"></a>
+ <a href="#fnanchor_160-7">[160-7]</a>
+ <i>W. Thornton</i>, On Labour, its wrongful Claims and rightful Dues, its
+ actual, Present and possible Future, 1869, II, ch. 1. <i>Harrison</i>,
+ Fortnightly Review, III, 50.</p>
+
+ <p class="footnote"> <a name="footnote_160-8" id="footnote_160-8"></a>
+ <a href="#fnanchor_160-8">[160-8]</a>
+ Just as the husband binds himself in marriage. While in concubinage there
+ is apparent equality, it costs the woman a much greater sacrifice than the
+ man.</p>
+
+<p class="p2 center"><a name="S161"></a>SECTION CLXI.</p>
+
+<p class="center smaller">WAGES OF LABOR.&mdash;THE MINIMUM OF WAGES.</p>
+
+<p>Human labor cannot, any more than any other commodity, be supplied, in
+the long run, at a price below the cost of production.<a name="fnanchor_161-1"
+id="fnanchor_161-1"></a><a href="#footnote_161-1" class=
+"fnanchor">[161-1]</a> <a name="fnanchor_161-2" id="fnanchor_161-2"></a><a
+href="#footnote_161-2" class="fnanchor">[161-2]</a> The cost of production
+here embraces not only the necessary or customary means of subsistence of
+the workman himself, but also of his family; that is, of the coming
+generation of workmen. The number of the latter depends essentially on the
+demand for labor. If this demand be such that it may be satisfied by an
+average of six children to a family, the rate of wages must be such as to
+support the workman himself and to cover the cost of bringing up six
+children.<a name="fnanchor_161-3" id="fnanchor_161-3"></a><a
+href="#footnote_161-3" class="fnanchor">[161-3]</a> Where it is <span
+class='pagenum'>[Pg 42]</span> customary for the wife and child, as well as
+for the father, to work for wages, the father does not need to earn the
+entire support of the family, and hence individual wages may be smaller.<a
+name="fnanchor_161-4" id="fnanchor_161-4"></a><a href="#footnote_161-4"
+class="fnanchor">[161-4]</a> But if it were to fall below the cost
+mentioned above, it would not be long before increased mortality and
+emigration, and a diminution of marriages and births would produce a
+diminution of the supply; the result of which would be, if the demand
+remained the same, a renewed rise of wages.</p>
+
+<p>Conversely, it would be more difficult for the rate of wages to be
+maintained long much above that same cost, in proportion as the
+gratification of the sexual appetite was more generally considered the
+highest pleasure of sense, and the love of parents <span
+class='pagenum'>[Pg 43]</span> for their children as the most natural human
+duty. As Adam Smith says, where there is a great demand for men, there will
+always be a large supply of them.<a name= "fnanchor_161-5" id=
+"fnanchor_161-5"></a><a href="#footnote_161-5" class="fnanchor">[161-5]</a>
+</p>
+
+ <p class="footnote"> <a name="footnote_161-1" id="footnote_161-1"></a>
+ <a href="#fnanchor_161-1">[161-1]</a>
+ Compare <i>Engel's</i> beautiful lecture on the cost of labor to itself
+ (<i>Selbstkosten</i> = <i>self-cost</i>), Berlin, 1866.</p>
+
+ <p class="footnote"> <a name="footnote_161-2" id="footnote_161-2"></a>
+ <a href="#fnanchor_161-2">[161-2]</a>
+ <i>Wolkoff</i> zealously and rightly argues, that the minimum wages is not
+ the <i>taux naturel</i> of wages. (Lectures, 118 ff., 284.) <i>von
+ Thünen</i> also divides wages into two component parts&mdash;that which
+ the workman must lay out in his support in order to continue able to work,
+ and that which he receives for his actual exertion. (Isolirter Staat., II,
+ 1, 92 seq.)</p>
+
+ <p class="footnote"> <a name="footnote_161-3" id="footnote_161-3"></a>
+ <a href="#fnanchor_161-3">[161-3]</a>
+ <i>Gasparin</i> distinguishes five periods in the career of a workman
+ generally: a, he is supported by his parents; b, he supports himself and
+ is in a condition to save something; c, he marries, and supports his
+ children with trouble; d, the children are able to work, and the father
+ lives more comfortably; e, his strength and resources decline.
+ (<i>Villermé</i>, Tableau de l'État physique et moral des Ouvriers, 1840,
+ II, 387.)</p>
+
+ <p class="footnote"> <a name="footnote_161-4" id="footnote_161-4"></a>
+ <a href="#fnanchor_161-4">[161-4]</a>
+ <i>Cantillon</i>, Nature du Commerce, etc., 1755, is of opinion that a day
+ laborer, to bring up two children until they are grown, needs about as
+ much as he does for his own support; and that his wife may, as a rule,
+ support herself by her own work. (42 ff.) In Germany, it is estimated
+ that, in the case of day laborers, a woman can earn only from 1/3 to ½ of
+ what her husband does; mainly because she is so frequently incapacitated
+ for work by pregnancy, nursing, etc. (<i>Rau</i>, Lehrbuch, I, § 190.) In
+ France, in 1832, a man working in the fields earned, on an average, 1¼
+ francs a day, the wife ¾ of a franc (200 days to the year), the three
+ children 38/100 francs (250 days to the year), an aggregate of 650 francs
+ per annum. (<i>Morogues.</i>) In England, the average amount earned in the
+ country was for males, per annum, £27 17s.; (munications<a name=
+ "fnanchor_TN6" id= "fnanchor_TN6"></a><a href= "#footnote_TN6" class=
+ "fnanchor">[TN 6]</a> relative to the Support and Maintenance of the Poor,
+ 1834, p. LXXXVIII.) The wife of an English field hand, without children,
+ earns 1/3 more than one with children. In the case of mothers, a
+ difference of fewer or more children is unnoticeable in the effects on
+ wages. (London Statist. Journal, 1838, 182.) In the spinning factories in
+ Manchester, in 1834, children between 9 and 10 years of age were paid,
+ weekly, from 2s. 9d. to 2s. 10d.; between 10 and 12, from 3s. 6d. to 3s.
+ 7d.; between 12 and 14, from 5s. 8d. to 5s. 9d.; between 14 and 16, from
+ 7s. 5d. to 7s. 6d. (Report of the Poor Commissioners, 204.) Those
+ manufactures which require great physical strength, like carpet and
+ sail-cloth weaving, and those carried on in the open air and in all kinds
+ of weather, allow of no such family competition and debasement of wages.
+ (<i>Senior</i> in the Report of the parliamentary Committee on Hand
+ Weavers, 1841.)</p>
+
+ <p class="footnote"> <a name="footnote_161-5" id="footnote_161-5"></a>
+ <a href="#fnanchor_161-5">[161-5]</a>
+ Similarly, <i>J. Möser</i>, Patriot. Phant., I, 40. <i>Adam Smith</i>
+ infers from the following symptoms in a country that wages are higher
+ there than the indispensable minimum, viz.: if wages in summer are higher
+ than in winter, since it is seldom that enough is saved in summer to
+ satisfy the more numerous wants of winter; if wages vary less from year to
+ year and more from place to place than the means of subsistence, it they
+ are high even where the means of subsistence are cheapest. (Wealth of
+ Nat., I, ch. 8.)</p>
+
+<p class="p2 center"><a name="S162"></a>SECTION CLXII.<a name=
+"fnanchor_TN7" id= "fnanchor_TN7"></a><a href= "#footnote_TN7" class=
+"fnanchor">[TN 7]</a> </p>
+
+<p class="center smaller">COST OF PRODUCTION OF LABOR.</p>
+
+<p>The idea conveyed by the expression necessaries of life is, within
+certain limits, a relative one. In warm countries, a workman's family needs
+less clothing, shelter, fuel and even food<a name="fnanchor_162-1"
+id="fnanchor_162-1"></a><a href="#footnote_162-1" class=
+"fnanchor">[162-1]</a> than in cold countries. This difference becomes
+still more striking when the warm countries possess absolutely cheaper food
+as, for instance, rice, Turkish wheat, bananas etc. Here, evidently, other
+circumstances being the same, the rate of wages may be lower.<a
+name="fnanchor_162-2" id="fnanchor_162-2"></a><a href="#footnote_162-2"
+class="fnanchor">[162-2]</a> The cultivation of the potato has operated in
+the same direction; since an acre of land planted with potatoes yields, on
+an average, twice as much food as the same acre planted with rye.<a
+name="fnanchor_162-3" id="fnanchor_162-3"></a><a href="#footnote_162-3"
+class="fnanchor">[162-3]</a> In France, two-thirds <span class=
+'pagenum'>[Pg 44]</span> of the population lived almost without animal
+food, on chestnuts, Indian corn, and potatoes (<i>Dupin</i>), while in
+England, malt, hops, sugar, brandy, tea, coffee, tobacco, soap, newspapers,
+etc. are described as "articles chiefly used by the laboring classes."
+(<i>Carey</i>.)</p>
+
+<p>The standard of decency of the working class also has great influence
+here. The use of blouses in Paris has nothing repulsive, nor that of wooden
+shoes in many of the provinces of France, nor the absence of shoes in lower
+Italy; while the English workman considers leather shoes indispensable, as
+he did only a short time ago a cloth coat. Compare <i>infra</i>, § 214.<a
+name="fnanchor_162-4" id="fnanchor_162-4"></a><a href="#footnote_162-4"
+class="fnanchor">[162-4]</a></p>
+
+ <p class="footnote"> <a name="footnote_162-1" id="footnote_162-1"></a>
+ <a href="#fnanchor_162-1">[162-1]</a>
+ Explained since <i>Liebig's</i> time by the fact that a part of food is
+ consumed to preserve animal heat: means of respiration in
+ contradistinction to means of nutrition. Recent research has shown that in
+ cold weather more urea and also more carbonic acid are given off; hence
+ the means of supplying this deficit should be greater in cold weather than
+ in warm. This more rapid transformation is wont, when nutrition is
+ sufficient, to be accompanied by more energetic activity.
+ (<i>Moleschott</i>, Physiologie der Nahrungsmittel, 1850, 47, 50, 83.)</p>
+
+ <p class="footnote"> <a name="footnote_162-2" id="footnote_162-2"></a>
+ <a href="#fnanchor_162-2">[162-2]</a>
+ This is opposed in part by the fact that a hot climate induces indolence,
+ and that therefore he needs a greater incentive to overcome his
+ disposition to idleness. Thus, in the cooler parts of Mexico, the rate of
+ wages was 26 sous a day, in the warmer, 32 sous. (<i>Humboldt</i>, N.
+ Espagne, III, 103.)</p>
+
+ <p class="footnote"> <a name="footnote_162-3" id="footnote_162-3"></a>
+ <a href="#fnanchor_162-3">[162-3]</a>
+ According to <i>Engel</i>, Jahrbuch für Sachsen, I, 419, on acres
+ similarly situated and under similar conditions, the lowest yielded:</p>
+
+<div> <table class="fn" border="0" cellpadding="5" summary="Acreage yields">
+
+<tr><td class="center">Of </td> <td class="center"><i>Watery contents<br />included.</i></td>
+<td class="center"><i>Watery contents<br />excluded.</i></td></tr>
+
+<tr><td class="left">wheat,</td> <td class="right">1,881 lbs.</td>
+<td class="right">1,680 lbs.</td></tr>
+
+<tr><td class="left">rye,</td> <td class="right">1,549 lbs.</td>
+<td class="right">1,404 lbs.</td></tr>
+
+<tr><td class="left">pease,</td> <td class="right">1,217 lbs.</td>
+<td class="right">1,095 lbs.</td></tr>
+
+<tr><td class="left">potatoes,</td> <td class="right">21,029 lbs.</td>
+<td class="right">5,257 lbs.</td></tr>
+
+</table></div>
+
+ <p class="footnote">The dry substance of these products yielded:</p>
+
+<div>
+<table class="fn" border="0" cellpadding="5" summary="Dry substance yields">
+
+<tr><td></td> <td class="center"><i>Azotized<br />Substance.</i></td>
+<td class="center"><i>Fecula.</i></td>
+<td class="center"><i>Mineral<br />Matter</i></td></tr>
+
+<tr><td class="left">Wheat,</td> <td class="right">282 lbs.</td>
+<td class="right">879 lbs.</td> <td class="right">49 lbs.</td></tr>
+
+<tr><td class="left">Rye,</td> <td class="right">243 lbs.</td>
+<td class="right">661 lbs.</td> <td class="right">34 lbs.</td></tr>
+
+<tr><td class="left">Pease,</td> <td class="right">309 lbs.</td>
+<td class="right">431 lbs.</td> <td class="right">33 lbs.</td></tr>
+
+<tr><td class="left">Potatoes,</td> <td class="right">525 lbs.</td>
+<td class="right">3,785 lbs.</td> <td class="right">178 lbs.</td></tr>
+
+</table></div>
+
+ <p class="footnote">In Saxony, from 1838 to 1852, the average prices stood
+ as follows:</p>
+
+<div> <table class="fn" border="0" cellpadding="5" summary="Saxony yields">
+
+<tr><td></td> <td class="center"><i>Of Rye.</i></td>
+<td class="center"><i>Of Wheat.</i></td>
+<td class="center"><i>Of Potatoes.</i></td></tr>
+
+<tr><td class="left">One lb. of dry substance,</td>
+<td class="center">1</td> <td class="right2">1.28</td>
+<td class="right2">.95</td></tr>
+
+<tr><td class="left">One lb. of protein substance,</td>
+<td class="center">1</td> <td class="right2">1.11</td>
+<td class="right2">1.78</td></tr>
+
+<tr><td class="left">One lb. of fecula,</td><td class="center">1</td>
+<td class="right2">1.14</td> <td class="right2">0.72</td></tr>
+
+</table></div>
+
+ <p class="footnote">(loc. cit.) The high price of protein in wheat depends
+ probably on the more agreeable appearance and pleasanter taste of wheat
+ flour; the still higher price of potato protein on the exceedingly easy
+ mode of its preparation.</p>
+
+ <p class="footnote"> <a name="footnote_162-4" id="footnote_162-4"></a>
+ <a href="#fnanchor_162-4">[162-4]</a>
+ As regards food alone, the cost of the support of a plowman on Count
+ Podewil's estate, reduced by <i>Rau</i>, Lehrbuch, § 191, to the unit of
+ rye, is annually 1,655 lbs. of rye. According to <i>Koppe</i>, it is 1,952
+ lbs.; to <i>Block</i>, 2,300 lbs.; to <i>Kleemann</i>, from 1,888 to 2,552
+ lbs.; to <i>Möllenger</i>, 2,171 lbs. The first three estimate the cost in
+ meat at 78, 160 and 60 pounds. Compare <i>Block</i>, Beitr. Z.
+ Landgüterschätzungskunde, 1840, 6. Exhaustive estimates for all Prussian
+ governmental districts in <i>von Reden</i>, Preussische Erwerbs, und
+ Verkehrsstatistik, 1853, I, 177 ff., according to which the requirement,
+ per family, varies between 71 thalers in Gumbinnen and 204 thalers in
+ Coblenz, the average being 105 thalers. According to more recent accounts,
+ a laborer's family in East Prussia, gangmen not included, get along very
+ well on 177 thalers per annum. (<i>von der Goltz</i>, Ländl.
+ Arbeiterfrage, 1872, 9 ff.) In Mecklenburg, omitting <i>Hofgänger</i>, on
+ 183 thalers. (Ann. des. patr. Vereins, 1865, No. 26.)</p>
+
+ <p class="footnote">The necessary outlay of the family of an agricultural
+ day laborer in England, in 1762, was estimated as follows: for bread and
+ flour, £6 10s. per annum; for vegetables and fruit, £1 1-2/3s.; for fuel,
+ light and soap, 2-9-5/6s.; for milk, butter and cheese, £1 1-6-5/6s.; for
+ meat, £1 6s.; for house-rent, 1-6s.; for clothing, bedding, etc.,
+ 2-16-1/3s.; for salt, beer and colonial wares, 1-16-5/6s.; for medicine,
+ expenses attending confinement of wife, etc., 1-6½s. (<i>J. Wade</i>,
+ History of the middle and working Classes, 1853, 545.) Concerning 1796,
+ compare <i>Sir F. M. Eden</i>, State of the Poor, I, 660, 1823;
+ <i>Lowe</i>, on the present Condition of England. Compare on the receipts
+ and expenses of ten working families in and about Mühlhausen, the tables
+ in the Journal des Economistes, October, 1861, 50; and further
+ <i>Ducpétiaux</i>, Budgets économiques des Classes ouvrières en Belgique,
+ 1855. According to <i>Playfair</i> in <i>Knop</i>, Agriculturchemie, I,
+ 810, ff., different classes of grown men need daily food.</p>
+
+<div>
+<table class="fn" border="0" cellpadding="5" summary="Grown men daily food
+needs">
+
+<tr><td class="center"><span class="smcap">Grammes.</span></td>
+<td class="center"><i>1.</i></td> <td class="center"><i>2.</i></td>
+<td class="center"><i>3.</i></td> <td class="center"><i>4.</i></td>
+<td class="center"><i>5.</i></td></tr>
+
+<tr><td class="left">Plastic material,</td> <td class="right">56.70</td>
+<td class="right">70.87</td> <td class="right">119.07</td
+> <td class="right">155.92</td> <td class="right">184.27</td></tr>
+
+<tr><td class="left">Fat,</td> <td class="right">14.70</td>
+<td class="right">28.35</td> <td class="right">51.03</td>
+<td class="right">70.87</td> <td class="right">70.87</td></tr>
+
+<tr><td class="left">Starch,</td> <td class="right">340.20</td>
+<td class="right">340.20</td> <td class="right">530.15</td>
+<td class="right">567.00</td> <td class="right">567.00</td></tr>
+
+</table></div>
+
+ <p class="footnote">Here 1 stands for a convalescent who can bear only
+ enough to preserve life; 2, the condition of rest; 3, moderate motion of
+ from 5 to 6 English miles' walk daily; 4, severe labor = a walk of 20
+ English miles daily; 5, very severe labor = to a day's walk of 14 English
+ miles, with a load weighing 60 lbs. If the fat be given in terms of
+ starch, the aggregate need of both substances in the case of 1 is 6.6
+ times as great as the need of plastic substance; in the case of 2, 3, 4,
+ and 5, respectively 5.7, 5.2, 4.8 and 4.0 times as much.</p>
+
+ <p class="footnote">A Dutch soldier doing garrison duty receives daily, in
+ times of peace, 0.333 kilogrammes of wheat flour, 0.125 of meat, 0.850 of
+ potatoes, 0.250 of vegetables, containing in the aggregate 60 grammes of
+ albumen. In forts, where the service is more severe, he receives 0.50
+ kilogrammes of wheat flour, 0.06 of rice or groats, with an aggregate
+ amount of 116 grammes of albumen. (<i>Mulder</i>, Die Ernährung in ihrem
+ Zusammenhange mit dem Volksgeiste, übersetzt <i>von Molecshott</i>, 1847,
+ 58 seq.) According to the researches of Dr. Smith, in order to avoid the
+ diseases caused by hunger, a man needs, on an average, to take 4,300
+ grains of carbon and 200 grains of nitrogen in his daily food; a woman
+ 3,900 grains of carbon and 180 grains of nitrogen. In 1862, the workmen in
+ the famishing cotton industries of Lancashire were actually reduced to
+ just about this minimum. (<i>Marx</i>, Kapital, I, 642.) Death from
+ starvation occurs in all vertebrates when the loss of weight of the body,
+ produced by a want of food, amounts to between two-fifths and one-half of
+ what it was at the beginning of the experiment. (<i>Chossat</i>,
+ Recherches expérimentales sur l'Inanition, 184, 3.)</p>
+
+<p class="p2 center"><a name="S163"></a>SECTION CLXIII.<span
+class='pagenum'>[Pg 45]</span></p>
+
+<p class="center smaller">WAGES OF LABOR.&mdash;POWER OF THE WORKING
+CLASSES OVER THE RATE OF WAGES.</p>
+
+<p>In this way, the working classes hold in their own hands one of the
+principal elements which determine the rate of wages; and it is wrong to
+speak of an "iron law" which, under <span class='pagenum'>[Pg 46]</span>
+the control of supply and demand, always reduces the average wages down to
+the means of subsistence.<a name= "fnanchor_163-1" id=
+"fnanchor_163-1"></a><a href= "#footnote_163-1" class=
+"fnanchor">[163-1]</a> For the moment, indeed, not only individual workmen,
+but the whole working class is master of the supply of its commodity only
+to a very small extent; since, as a rule, the care for existence compels it
+to carry, and that without interruption, its whole labor-power to market.
+But it is true that the future supply depends on its own will; since, with
+an increase or decrease in the size of the families of workingmen, that
+supply increases or diminishes. If, therefore, by a favorable combination
+of circumstances, wages have risen above the height of urgent necessity,
+there are two ways open to the working class to take advantage of that
+condition of things. The workman either raises his standard of living,
+which means not only that his necessary wants are better satisfied, his
+decencies increased and refined, but also and chiefly, that the
+intellectual want of a good prospect in the future, which so particularly
+distinguishes <span class='pagenum'>[Pg 47]</span> the honorable artisan
+from the proletarian is taken into consideration. And it is just here that
+a permanent workingmen's union, which should govern the whole class, might
+exert the greatest influence. Their improved economic state can be
+maintained only on condition that the laboring class shall create families
+no larger than they hope to be able to support consistently with their new
+wants.<a name="fnanchor_163-2" id="fnanchor_163-2"></a><a
+href="#footnote_163-2" class="fnanchor">[163-2]</a></p>
+
+<p>Or, the laboring class continues to live on as before, from hand to
+mouth, and employ their increased resources to gratify their sexual
+appetite earlier and longer than before, thus soon leading to an increase
+of population.</p>
+
+<p>The English took the former course in the second quarter of the last
+century, when English national economy received a powerful impetus, and the
+large demand for labor rapidly enhanced the rate of wages. The Scotch did
+in like manner a generation later. The second alternative was taken by the
+Irish, when the simultaneous spread of the cultivation of the potato<a
+name="fnanchor_163-3" id="fnanchor_163-3"></a><a href="#footnote_163-3"
+class="fnanchor">[163-3]</a> and the union with England, at the beginning
+of the nineteenth century, gave an extraordinary extension to their
+resources of food. While the population of Great Britain, between 1720 and
+1821, did little more than double, the population of Ireland increased from
+2,000,000 to nearly 7,000,000 between 1731 and 1821. No wonder, therefore,
+that the average wages of labor was twenty to twenty-four pence per day in
+the former, and in the latter only five pence. (<i>MCCulloch.</i>)<a
+name="fnanchor_163-4" id="fnanchor_163-4"></a><a href="#footnote_163-4"
+class="fnanchor">[163-4]</a></p>
+
+<p>Naturally enough, this difference of choice by the two peoples <span
+class='pagenum'>[Pg 48]</span> is to be explained by the difference in
+their previous circumstances. The Irish people, robbed by violence of their
+own higher classes, and, therefore, and on this account precisely, almost
+entirely destitute of a middle class, had lost the check on increase they
+possessed in the middle ages, without having as yet assimilated to
+themselves<a name= "fnanchor_TN8" id= "fnanchor_TN8"></a><a href=
+"#footnote_TN8" class= "fnanchor">[TN 8]</a> the checks which come with a
+higher stage of culture. Their political, ecclesiastical and social
+oppression allowed them no hope of rising by temporary sacrifices and
+energetic efforts permanently to a better condition as citizens or
+gentlemen. Only the free man cares for the future. Hence, the sexual
+thoughtlessness and blind good nature, the original tendencies of the Irish
+people, necessarily remained without anything to counterbalance them. It
+always supposes a high degree of intelligence and self-restraint among the
+lower classes, when an increase in the thing-value, or the real value of
+wages, does not produce an increase in the number of workmen, but in their
+well-being. The individual is too apt to think that it matters little to
+the whole community whether he brings children into the world or not, a
+species of egotism which has done most injury to the interests in common of
+mankind. As a rule, it requires a great and palpable enhancement of wages
+to make workmen, as a class, raise their standard of living.<a
+name="fnanchor_163-5" id="fnanchor_163-5"></a><a href="#footnote_163-5"
+class="fnanchor">[163-5]</a> <a name="fnanchor_163-6" id="fnanchor_163-6">
+</a><a href="#footnote_163-6" class="fnanchor">[163-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_163-1" id="footnote_163-1"></a>
+ <a href="#fnanchor_163-1">[163-1]</a>
+ Compare <i>Lassalle</i>, Antwortschreiben an das Central Comite zur
+ Berufung eines allg. deutschen Arbeitercongresses, 1863, 15; also
+ <i>Turgot</i>, sur la Formation etc., § 6. When <i>Lassalle</i> says that
+ when a varied standard of living has become a national habit it ceases to
+ be felt as an improvement, he says what is in a certain sense true. But is
+ the man to be pitied who, absolutely speaking, is getting on well enough;
+ relatively speaking, better off than before; but who is only not better
+ off than other men?</p>
+
+ <p class="footnote"> <a name="footnote_163-2" id="footnote_163-2"></a>
+ <a href="#fnanchor_163-2">[163-2]</a>
+ A case in Holstein, in which, in the first half of the eighteenth century,
+ the serfs of a hard master conspired together not to marry, and thus soon
+ forced him to sell his estate. (<i>Büsch</i>, Darstellung der Handlung, V,
+ 3, II.)</p>
+
+ <p class="footnote"> <a name="footnote_163-3" id="footnote_163-3"></a>
+ <a href="#fnanchor_163-3">[163-3]</a>
+ On the otherwise remarkable economic advance in Ireland about 1750, see
+ <i>Orrey</i>, Letters concerning the Life and Writings of Swift, 1751,
+ 127; <i>Anderson</i>, Origin of Commerce, a., 1751.</p>
+
+ <p class="footnote"> <a name="footnote_163-4" id="footnote_163-4"></a>
+ <a href="#fnanchor_163-4">[163-4]</a>
+ Compare especially <i>Malthus</i>, Principles, ch. 4, sec. 2. How little
+ Adam Smith dreamt of this may be best seen in I, 115, Bas. Recently, the
+ average wages per week amounted in England to 22½s., in Scotland to 20½s.,
+ in Ireland to 14¾s. (<i>Levi</i>, Wages and Earnings of the working
+ Classes, 1866.)</p>
+
+ <p class="footnote"> <a name="footnote_163-5" id="footnote_163-5"></a>
+ <a href="#fnanchor_163-5">[163-5]</a>
+ Thus the unheard of long series of excellent harvests in England, between
+ 1715 and 1765, contributed very largely to this favorable transformation.
+ Day wages expressed in wheat, between 1660 and 1719, amounted on an
+ average to only about 2/3 of a peck; between 1720 and 1750, to an entire
+ peck. In the fifteenth century, a similar series of good harvests
+ contributed very much to the flourishing condition of the "yeomanry."
+ Under Henry VII., workmen earned from two to three times as much corn as
+ they did a century later. And so in France, the great Revolution at the
+ end of the eighteenth century, by setting free a vast quantity of hitherto
+ bound-up force, enhanced the productiveness of the entire economy of the
+ nation, and made the division of the national income more nearly equal.
+ There is an essential connection here between the rapidity of the
+ transition and the facts, that the habits of consumption of the working
+ class received a powerful impulse, and that population increased much less
+ rapidly than the national income. Compare <i>John Stuart Mill</i>,
+ Principles, II, ch. 11, 2. In our own days again, English workmen had a
+ splendid opportunity to raise their standard of life. Emigration to
+ Australia, etc. preponderated over the natural increase of population to
+ such an extent that, in 1852, for instance, only 217,000 more human beings
+ were born in England and Wales than died, and 368,000 emigrated. At the
+ same time, exports increased: in 1849, they were £63,000,000; in 1850
+ £71,000,000; about the end of 1853, something like £90,000,000.</p>
+
+ <p class="footnote">This golden opportunity was used by the English
+ laboring classes to both largely multiply marriages and to enhance the
+ rate of wages. The number of marriages contracted in England yearly, from
+ 1843 to 1847, was 136,200; from 1853 to 1857, 159,000. The number of
+ births annually, from 1843 to 1847, was 544,800; from 1853 to 1857,
+ 640,400. And wages, in a number of industries, rose, between 1839 and
+ 1859, from about 18 to 24 per cent. (Quarterly Review, July, 1860, 86),
+ while the prices of most of the necessaries of life declined. That, in the
+ same time, the condition of English laborers was elevated, both
+ intellectually and morally, is proved by many facts cited in <i>Jones' and
+ Ludlow's</i> work on the social and political condition of the laboring
+ classes in England. In Germany, the recent establishment of peace on a
+ firm footing and the French war contributions have given the country an
+ impulse which might be taken advantage of by the laboring class with the
+ happiest results if they would accustom themselves to more worthy wants
+ and at the same time preserve their accustomed industry.</p>
+
+ <p class="footnote"> <a name="footnote_163-6" id="footnote_163-6"></a>
+ <a href="#fnanchor_163-6">[163-6]</a>
+ The cheapening of the necessaries of life, experience shows, is more
+ likely to lead to an increase of population; that of luxuries, to a
+ raising of the standard of life or of comfort.</p>
+
+<p class="p2 center"><a name="S164"></a>SECTION CLXIV.<span
+class='pagenum'>[Pg 49]</span></p>
+
+<p class="center smaller">WAGES.&mdash;COST OF PRODUCTION OF LABOR.</p>
+
+<p>As the cheapening of the means of subsistence, when the circle of wants
+of the laboring class has not correspondingly increased, leads to a decline
+of wages, so an enhancement of their price must, when wages are already so
+low as only to be able to satisfy indispensable wants, produce an increase
+in the rate of wages. The transition in the former case is as pleasing as
+in the latter it is replete with the saddest crises.<a name="fnanchor_164-1"
+id="fnanchor_164-1"></a><a href="#footnote_164-1" class=
+"fnanchor">[164-1]</a> The <span class='pagenum'>[Pg 50]</span> slower the
+rise in the price of the means of subsistence is, the more it is to be
+feared that the working classes will seek to meet it, not by emigration or
+by a diminished number of marriages, but by decreasing the measure of their
+wants, the introduction of a poorer quality of food, etc.<a
+name="fnanchor_164-2" id="fnanchor_164-2"></a><a href="#footnote_164-2"
+class="fnanchor">[164-2]</a></p>
+
+<p>However, all this is true only of permanent changes in the average price
+of the means of subsistence, such as are produced, for instance, by the
+development of agriculture, by taxation etc. Transitory fluctuations, such
+as result, for instance, from a single good or bad harvest, cannot have
+this result.<a name="fnanchor_164-3" id="fnanchor_164-3"></a><a href=
+"#footnote_164-3" class="fnanchor">[164-3]</a> It is, in poor countries at
+least, one of the worst effects of a bad harvest, that it tends to
+positively lower the rate of wages. A multitude of persons who would
+otherwise be able to purchase much labor are now deterred from doing so, by
+the enhancement of the price of food.<a name="fnanchor_164-4" id=
+"fnanchor_164-4"></a><a href="#footnote_164-4" class="fnanchor">[164-4]</a>
+On the other hand, the supply increases: <span class='pagenum'>[Pg
+51]</span> many men who before would not work even for money, see
+themselves now compelled to do so. Those who have been workmen hitherto are
+compelled by want to make still greater exertions.<a name="fnanchor_164-5"
+id="fnanchor_164-5"></a><a href="#footnote_164-5" class="fnanchor">[164-5]
+</a></p>
+
+<p>In very cheap years, all this is naturally reversed.<a name=
+"fnanchor_164-6" id="fnanchor_164-6"></a><a href="#footnote_164-6"
+class="fnanchor">[164-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_164-1" id="footnote_164-1"></a>
+ <a href="#fnanchor_164-1">[164-1]</a>
+ According to <i>McCulloch</i>, Edition of <i>Adam Smith</i>, 472, the food
+ of a day laborer's family constitutes between 40 and 60 per cent. of their
+ entire support. In the case of Prussian field hands, it is generally 54
+ per cent. greatest in the province of Saxony, viz., 58 per cent. and
+ lowest in Posen, 43 per cent. Compare <i>Rau</i>, Lehrbuch, I, § 191. This
+ may serve as a point of departure, from which to measure the influence of
+ a given enhancement of the price of corn. In opposition to <i>Buchanan</i>
+ (Edition of <i>Adam Smith</i>, 1817, 59), who had denied the influence of
+ the price of the means of subsistence on the rate of wages, see
+ <i>Ricardo</i>, Principles, ch. 16.</p>
+
+ <p class="footnote"> <a name="footnote_164-2" id="footnote_164-2"></a>
+ <a href="#fnanchor_164-2">[164-2]</a>
+ How easily English farmers have accustomed themselves to the consequences
+ of momentary calamities, may be seen from <i>John Stuart Mill</i>,
+ Principles, II, ch. 11, 5 seq.; <i>Thornton</i>, Population and its
+ Remedy, 1846, passim. <i>Malthus</i>, Principles, sec. 8, shows in
+ opposition to <i>Ricardo</i>, Principles, ch. 8, that it is not all one to
+ the laboring classes whether their wages rise while the price of the means
+ of subsistence remains the same, or whether the rate of wages remaining
+ nominally the same, the commodities to be purchased decline in price. If
+ for instance, potato-food, physiologically considered, was just as good as
+ flesh-food and wheat bread, yet an unmarried workman or a father with a
+ number of children below the average would be able to save less from the
+ former for the reason that it possesses less value in exchange. (Edinburg
+ Rev., XII, 341.) Thus, e. g., in Ireland, between <i>A. Young</i> and
+ <i>Newenham</i> (1778-1808), the rate of wages increased more than the
+ price of potatoes, but all other means of subsistence in a still greater
+ ratio. (<i>Newenham</i>, A view of Ireland, 1808.) Compare <i>Malthus</i>,
+ On the Policy of Restricting the Importation of foreign Corn, 1815, 24
+ ff.; contra. <i>Torrens</i>, on the Corn trade, 1820, 374 ff.</p>
+
+ <p class="footnote"> <a name="footnote_164-3" id="footnote_164-3"></a>
+ <a href="#fnanchor_164-3">[164-3]</a>
+ Compare <i>Garve</i> in <i>MacFarlan</i>, On Pauperism, 1785, 77. Thus, in
+ the United States, the same quantities of coffee, leather, pork, rice,
+ salt, sugar, cheese, tobacco, wool, etc., could be earned in 1836 by 23.5
+ days' labor; in 1840, by 20.75; in 1843, by 14.8; in 1864, by 34.6.
+ (<i>Walker</i>, Science of Wealth, 256.)</p>
+
+ <p class="footnote"> <a name="footnote_164-4" id="footnote_164-4"></a>
+ <a href="#fnanchor_164-4">[164-4]</a>
+ The person who formerly consumed perhaps four suits of clothes in a year
+ now limits himself to two, and forces the tailor to dismiss one
+ journeyman. In Bavaria, the dear times, 1846-47, and probably also the
+ disturbances of 1848-49, caused officials, pensioners, annuitants and
+ professional men to discharge one-tenth of the female domestics they
+ employed in 1840. (<i>Hermann</i>, Staatsw. Unters, II, Aufl., 467.)</p>
+
+ <p class="footnote"> <a name="footnote_164-5" id="footnote_164-5"></a>
+ <a href="#fnanchor_164-5">[164-5]</a>
+ The labor of digging during the time of scarcity in England was paid
+ one-third of the price usually paid in good years. (<i>Porter</i>,
+ Progress of the Nation, III, 14, 454.) On the Slavic<a name=
+ "fnanchor_TN9" id= "fnanchor_TN9"></a><a href= "#footnote_TN9" class=
+ "fnanchor">[TN 9]</a> portions of Silesia, see <i>Hildebrand's</i> Jahrb.,
+ 1872, I, 292. According to <i>Rogers</i>, I, 227 ff., 315 ff., and the
+ table of prices in the appendix to <i>Eden</i>, State of the Poor, the
+ price in England of a quarter of wheat and a day's wages was, in<span
+ style="white-space:nowrap;">&mdash;</span></p>
+
+<div> <table class="fn" border="0" cellpadding="5" summary="Quarter
+wheat and day's wages">
+
+<tr><td class="left">1287,</td> <td class="right">2s.</td> <td
+class="right">10¼ d.</td> <td class="right1">3 d.</td></tr>
+
+<tr><td class="left">1315,</td> <td class="right">14s.</td> <td
+class="right">10-7/8 d.</td> <td class="right1">3 d.</td></tr>
+
+<tr><td class="left">1316,</td> <td class="right">15s.</td> <td
+class="right">11-7/8 d.</td> <td class="right1">3-7/8 d.</td></tr>
+
+<tr><td class="left">1392,</td> <td class="right">3s.</td> <td
+class="right">2-5/8 d.</td> <td class="right1">5 d.</td></tr>
+
+<tr><td class="left">1407,</td> <td class="right">3s.</td> <td
+class="right">4 d.</td> <td class="right1">3 d.</td></tr>
+
+<tr><td class="left">1439,</td> <td class="right">8s.-26s.</td> <td
+class="right">8 d.</td> <td class="right1">4½ d.</td></tr>
+
+<tr><td class="left">1466,</td> <td class="right">5s.</td> <td
+class="right">8 d.</td> <td class="right1">4-6 d.</td></tr>
+
+<tr><td class="left">1505,</td> <td class="right">6s.</td> <td
+class="right">8 d.</td> <td class="right1">4 d.</td></tr>
+
+<tr><td class="left">1575,</td> <td class="right">20s.</td> <td></td>
+<td class="right1">8 d.</td></tr>
+
+<tr><td class="left">1590,</td> <td class="right">21s.</td> <td></td>
+<td class="right1">3-6 d.</td></tr>
+
+<tr><td class="left">1600,</td> <td></td> <td></td> <td
+class="right">10 d.</td></tr>
+
+</table></div>
+
+ <p class="footnote"> <a name="footnote_164-6" id="footnote_164-6"></a>
+ <a href="#fnanchor_164-6">[164-6]</a>
+ <i>Petty</i>, Several Essays on Political Arithmetic, 133 ff. <i>Adam
+ Smith</i>, Wealth of Nat., I, ch. 8. <i>Ricardo</i>, Principles, ch. 9. In
+ Hesse, in consequence of a series of many rich harvests from 1240 to 1247,
+ no servants could be had at all, so that the nobility and clergy were
+ obliged to till their own lands. (<i>Anton</i>, Gesch. der deutschen
+ Landwirthschaft, 111, 209.)</p>
+
+<p class="p2 center"><a name="S165"></a>SECTION CLXV.</p>
+
+<p class="center smaller">WAGES.&mdash;THE DEMAND FOR LABOR.</p>
+
+<p>The demand for labor, as for every other commodity, depends, on the one
+hand, on the value in use of it, and on the other, on the purchaser's
+capacity to pay for it (his solvability), These two elements determine the
+maximum limit of wages, as <span class='pagenum'>[Pg 52]</span> the means
+of support considered indispensable by the workmen determine the minimum.
+There are circumstances conceivable under which the rise in wages might
+entirely eat up rents; but there must always be a portion of the national
+income reserved to reward capital (its profit). If wages were to absorb the
+latter also, the mere owner of capital would cease to have any interest in
+the progress of production. Capital would then be withdrawn from employment
+and consumed.<a name="fnanchor_165-1" id="fnanchor_165-1"></a><a href=
+"#footnote_165-1" class="fnanchor">[165-1]</a> Obviously, no man engaged in
+any enterprise can give more as wages to his workmen than their work is
+worth to him.<a name="fnanchor_165-2" id="fnanchor_165-2"></a><a
+href="#footnote_165-2" class="fnanchor">[165-2]</a> Hence the additional
+product in any branch of industry, due to the labor of the workman last
+employed, has a controlling influence on the rate of the wages which can be
+paid to his fellow workmen. If the additional products of the workmen
+successively last employed constitute a diverging series,<a
+name="fnanchor_165-3" id="fnanchor_165-3"></a><a href="#footnote_165-3"
+class="fnanchor">[165-3]</a> the last term in the series is the natural
+expression of the unsurpassable maximum of wages; if they constitute a
+converging series, men the employer can pay the last workman higher wages
+than the additional product due to him; provided, however, that the
+reduction which is to be expected in the case of the workmen previously
+employed to the same level still leaves him a sufficiently high rate of
+profit.<a name="fnanchor_165-4" id="fnanchor_165-4"></a><a
+href="#footnote_165-4" class="fnanchor">[165-4]</a> Hence the growing skill
+of a workman, in <span class='pagenum'>[Pg 53]</span> and of itself, makes
+an increase of his wages possible;<a name="fnanchor_165-5" id=
+"fnanchor_165-5"></a><a href="#footnote_165-5" class="fnanchor">[165-5]</a>
+while, conversely, if he can be replaced by capital, which always
+relatively decreases the value in use of his labor, there is a consequent
+pressure on his wages.</p>
+
+ <p class="footnote"> <a name="footnote_165-1" id="footnote_165-1"></a>
+ <a href="#fnanchor_165-1">[165-1]</a>
+ <i>Storch</i>, Handbuch, I, 205 seq.</p>
+
+ <p class="footnote"> <a name="footnote_165-2" id="footnote_165-2"></a>
+ <a href="#fnanchor_165-2">[165-2]</a>
+ Higher wages promised, for instance, as a reward for saving a human life
+ or some other very precious thing in great danger of being destroyed. In
+ the case of material production, labor is worth to the party engaged in
+ the enterprise, at most, as much as the price of the product after the
+ remaining cost of reproducing it is deducted.</p>
+
+ <p class="footnote"> <a name="footnote_165-3" id="footnote_165-3"></a>
+ <a href="#fnanchor_165-3">[165-3]</a>
+ Possibly in consequence of a better division of labor or of some other
+ advance made in the technic arts.</p>
+
+ <p class="footnote"> <a name="footnote_165-4" id="footnote_165-4"></a>
+ <a href="#fnanchor_165-4">[165-4]</a>
+ Thus, for instance, in harvesting potatoes, if, after they have been
+ ploughed up, only those nearest the surface are collected, a laborer can
+ gather over thirty Prussian <i>scheffels</i> in a day. But the fuller and
+ completer the gathering of potatoes desired is, the smaller will be the
+ product of one workman and of one day's labor. If, therefore, a man wants
+ to gather even the last bushel in a potato field of 100 square rods, so
+ much labor would be required to accomplish it that the workman would not
+ gather enough to feed him during his work, to say nothing of supplying his
+ other wants. Supposing that 100 <i>scheffels</i> of potatoes had grown on
+ 100 square rods, and that of these were harvested<span
+ style="white-space:nowrap;">&mdash;</span></p>
+
+<div> <table class="fn" border="0" cellpadding="5" summary="Potato yield">
+
+<tr><td class="center"><i>When the number of men employed<br />in gathering
+them was</i></td> <td></td> <td></td> <td class="center" colspan="2"><i>Then
+the additional yield obtained<br />by the last workman employed
+is</i></td></tr>
+
+<tr><td class="center">4,</td> <td class="left">80</td>
+<td class="center">scheffels,</td></tr>
+
+<tr><td class="center">5,</td> <td class="left">86.6</td>
+<td class="center">"</td> <td class="center">6.6 scheffels.</td></tr>
+
+<tr><td class="center">6,</td> <td class="left">91</td>
+<td class="center">"</td> <td class="center">4.4 scheffels.</td></tr>
+
+<tr><td class="center">7,</td> <td class="left">94</td>
+<td class="center">"</td> <td class="center">&nbsp;&nbsp;3 scheffels.</td>
+</tr>
+
+<tr><td class="center">8,</td> <td class="left">96</td>
+<td class="center">"</td> <td class="center">&nbsp;&nbsp;2 scheffels.</td>
+</tr>
+
+<tr><td class="left" colspan="3">(<i>von Thünen</i>, Der isolirte Staat,
+II, 174 ff.)</td></tr>
+
+</table></div>
+
+ <p class="footnote"> <a name="footnote_165-5" id="footnote_165-5"></a>
+ <a href="#fnanchor_165-5">[165-5]</a>
+ In Manchester, in 1828, the wages paid for spinning one pound of cotton
+ yarn, No. 200, was 4s. 1d.; in 1831, only from 2s. 5d. to 2s. 8d. But, in
+ the former year, the spinner worked with only 312 spools; in the latter,
+ with 648; so that his wages increased in the ratio of 1274 to 1566.
+ (<i>Senior</i>, Outlines.)</p>
+
+<p class="p2 center"><a name="S166"></a>SECTION CLXVI.</p>
+
+<p class="center smaller">WAGES.&mdash;PRICE OF COMMON LABOR.</p>
+
+<p>In the case of a commodity as universally desired as human labor is, the
+idea of the purchasers' capacity to pay (solvability) must be nearly
+commensurate with the national income, or to speak more correctly, with the
+world's income.<a name="fnanchor_166-1" id="fnanchor_166-1"></a><a
+href="#footnote_166-1" class="fnanchor">[166-1]</a> In regard <span class=
+'pagenum'>[Pg 54]</span> to the different kinds of labor, and especially to
+common labor, it is evident that the different kinds of consumption require
+very different quantities of them. Here, therefore, we depend on the
+direction which national consumption takes, and this in turn is most
+intimately related to the distribution of the national income.<a
+name="fnanchor_166-2" id="fnanchor_166-2"></a><a href="#footnote_166-2"
+class="fnanchor">[166-2]</a> If all workmen were employed in nothing but
+the production of articles consumed by workmen, the rate of wages would be
+determined almost exclusively by the ratio between the number of the
+working population and the amount of the national income. But, if this were
+the case, landowners and capitalists would be obliged to live just as
+workmen do, and their highest luxury would have to consist in feeding
+idlers. (§ 226). The effect must be much the same, when the wealthy are
+exceedingly frugal and employ their savings as rapidly as possible in the
+employment of common home labor; while, on the other hand, the exportation
+of wheat, wood, and other articles, which the working classes consume, in
+exchange for diamonds, lace, champagne, diminishes the efficient demand for
+common labor in a country.<a name= "fnanchor_166-3" id=
+"fnanchor_166-3"></a><a href="#footnote_166-3" class="fnanchor">[166-3]</a>
+</p>
+
+<p>The assumption frequently made, that the demand for labor depends on the
+size of the national capital, is far from exact.<a name="fnanchor_166-4"
+id="fnanchor_166-4"></a><a href="#footnote_166-4" class="fnanchor">[166-4]</a>
+Thus, for instance, every transformation of circulating into fixed capital,
+especially when the labor used in effecting this transformation is ended,
+diminishes the demand for other labor. That principle is not
+unconditionally true, even in the case of circulating capital. Thus, for
+instance, the rate of wages is wont to be raised by the transfer of capital
+from such <span class='pagenum'>[Pg 55]</span> businesses as require little
+labor into such as require much.<a name="fnanchor_166-5" id=
+"fnanchor_166-5"></a><a href="#footnote_166-5" class="fnanchor">[166-5]</a>
+Only that part of circulating capital can have any weight here which is
+intended, directly or indirectly, for the purchase of labor and for the
+purchase of each kind of labor in particular.<a name="fnanchor_166-6"
+id="fnanchor_166-6"></a><a href="#footnote_166-6" class=
+"fnanchor">[166-6]</a> The capital of the employer is, by no means, the
+real source<a name="fnanchor_166-7" id="fnanchor_166-7"></a><a
+href="#footnote_166-7" class="fnanchor">[166-7]</a> of the wages of even
+the workmen employed by him, <span class='pagenum'>[Pg 56]</span> It is
+only the immediate reservoir through which wages are paid out, until the
+purchasers of the commodities produced by that labor make good the advance,
+and thereby encourage the undertaker to purchase additional labor.
+Correlated to this is the fact, that other circumstances being the same,
+those workmen usually receive the highest wages who have to do most
+immediately with the consumer.<a name= "fnanchor_166-8" id=
+"fnanchor_166-8"></a><a href="#footnote_166-8" class="fnanchor">[166-8]</a>
+</p>
+
+ <p class="footnote"> <a name="footnote_166-1" id="footnote_166-1"></a>
+ <a href="#fnanchor_166-1">[166-1]</a>
+ <i>Senior</i> denies this. Let us suppose that agriculture in Ireland
+ employs on every 200 acres ten working men's families, one-half of whom
+ are used to satisfy the aggregate wants of the working people, and the
+ other half in the production of wheat to be exported to England. If now
+ the English market requires meat and wool instead of wheat, the Irish
+ landowner will, perhaps, find it advantageous, of the ten laboring
+ families, to employ one in stock raising, a second in obtaining food, etc.
+ to support the laborers, and to discharge all the others. If, then, the
+ increased net product is employed in the purchase of other Irish labor,
+ all goes on well enough; but if, instead of this, the landowners should
+ import articles of English manufacture, the demand for labor in Ireland
+ would doubtless decrease, notwithstanding the increase of its income.
+ (Outlines, I, 154.) <i>Senior</i> here overlooks two things: first, that
+ in the supposed case, if eight-ninths of Irish laborers are thrown out of
+ employment, spite of the increased income of the owners of landed estates,
+ Ireland's national income is on the whole probably diminished (§ 146), and
+ secondly, that, possibly, the demand for labor in England experiences a
+ greater increase than the decrease in Ireland; since, with the addition to
+ the world-income, there would be an increase in the world-demand for
+ labor.</p>
+
+ <p class="footnote"> <a name="footnote_166-2" id="footnote_166-2"></a>
+ <a href="#fnanchor_166-2">[166-2]</a>
+ Compare <i>Hermann</i>, Staatswirthsch. Untersuch., 280 ff. Earlier yet,
+ <i>Malthus</i>, Principle of Population, II, ch. 13.</p>
+
+ <p class="footnote"> <a name="footnote_166-3" id="footnote_166-3"></a>
+ <a href="#fnanchor_166-3">[166-3]</a>
+ Thus, <i>Thomas More</i>, Utopia, 96, 197, thinks that if every one was
+ industrious and engaged in only really useful business, no one would need
+ to fatigue himself very much; while, as it is now, the few real laborers
+ there are wear themselves out in the service of the vanity of the rich,
+ are poorly fed and worked exceedingly hard.</p>
+
+ <p class="footnote"> <a name="footnote_166-4" id="footnote_166-4"></a>
+ <a href="#fnanchor_166-4">[166-4]</a>
+ <i>McCulloch</i>, Principles, 104, seq. 2d ed.</p>
+
+ <p class="footnote"> <a name="footnote_166-5" id="footnote_166-5"></a>
+ <a href="#fnanchor_166-5">[166-5]</a>
+ Thus, in France, during the continental blockade, distant ocean commerce
+ declined, and manufactures flourished instead. (<i>Lotz</i>, Revision,
+ III, 134.)</p>
+
+ <p class="footnote"> <a name="footnote_166-6" id="footnote_166-6"></a>
+ <a href="#fnanchor_166-6">[166-6]</a>
+ Thus, <i>Adam Smith</i> divides "the funds destined for the payment of
+ wages" into two kinds: the excess of employers' income over their own
+ maintenance, and the excess of their capital over the demands of their own
+ use of it. (Wealth of Nat, I, ch. 8.) <i>Senior</i> considers it a
+ self-evident principle, that the rate of wages depends on the size of the
+ "fund for the maintenance of laborers compared with the number of laborers
+ to be maintained." (Three Lectures on the Rate of Wages, 1830, Outlines,
+ 153, ff.) But what determines the quota of the aggregate national wealth
+ and national income that is to constitute this fund? <i>Carey</i>, Rate of
+ Wages, 1835, has a very exhaustive commentary on <i>Senior</i>.</p>
+
+ <p class="footnote"> <a name="footnote_166-7" id="footnote_166-7"></a>
+ <a href="#fnanchor_166-7">[166-7]</a>
+ <i>Watts</i>, Statist. Journal, 1861, 500, asserts altogether too
+ generally that an "increase of profit increases the future wages-fund, and
+ consequently the demand for laborers;" and that therefore every new
+ machine useful in manufactures must also be of use to the laboring class.
+ The employer engaged in any enterprise who has grown richer, <i>can</i>
+ pay more wages, but whether he <i>will</i> do it depends on other causes,
+ and even his ability to do it, in the long run, on his customers. When
+ <i>John Stuart Mill</i>, Principles, I, ch. 5, 9, says that only the
+ capital which comes into the hands of labor before the completion of their
+ work contributes to their support, it is as if he were to explain the
+ phenomena of prices by demand and supply, and nothing else, denying the
+ influence of the cost of production, of value in use, and of the deeper
+ determining causes upon them. (<i>Supra</i>, § 107, note 1.) Compare
+ <i>Roesler</i>, Z. Kritik der Lehre vom Arbeitslohn, 1861, 104 ff. In
+ England, the superstition which to a great extent attached to the idea
+ "wages-fund," was first questioned by <i>F. Longe</i>, Refutation of the
+ Wages-Fund Theory of modern Political Economy, 1866. See also
+ <i>Thornton</i>, On Labour, II, ch. 1. Even <i>John Stuart Mill</i>
+ dropped his earlier erroneous views on this subject. (Fortnightly Review,
+ May and June, 1869.) Not, however, without exaggeration, as is proved by
+ his well-known saying, that laborers needed capital but no capitalists.
+ Still, even here, he tenaciously holds that a rise in wages which
+ increases the price of some classes of commodities, must decrease the
+ aggregate demand for commodities. But better paid workmen may now increase
+ their demand for commodities to the same extent that the purchasers of
+ labor who do not gain as much as before, or the consumers of the goods
+ whose price has been enhanced diminish theirs. (<i>Brentano</i>, in
+ Hildebrand's Jahrbb., 1871, 374.) Only, this increase need not affect the
+ very commodities influenced by the decrease.</p>
+
+ <p class="footnote"> <a name="footnote_166-8" id="footnote_166-8"></a>
+ <a href="#fnanchor_166-8">[166-8]</a>
+ Thus, the person who builds his own house is wont to pay his workmen
+ better than a contractor or builder by profession; and the maker of the
+ entire manufactured article, as a rule, suffers less frequently than the
+ maker of only half of it. (<i>Hermann</i>, Staatsw. Unters., II, Aufl.,
+ 471.)</p>
+
+<p class="p2 center"><a name="S167"></a>SECTION CLXVII.</p>
+
+<p class="center smaller">DIFFERENCE OF WAGES IN DIFFERENT BRANCHES OF
+LABOR.</p>
+
+<p>All the causes which make wages higher in some branches of labor; than
+in others, may be divided into three great categories.<a name=
+"fnanchor_167-1" id="fnanchor_167-1"></a><a href="#footnote_167-1"
+class="fnanchor">[167-1]</a></p>
+
+<p>A. Rare personal acquirements. The supply of labor requiring rare
+personal ability will always be limited.<a name="fnanchor_167-2"
+id="fnanchor_167-2"></a><a href="#footnote_167-2" class=
+"fnanchor">[167-2]</a> Such labor must, naturally, have great value in use,
+when a small supply of it is met by a great demand.<a name="fnanchor_167-3"
+id="fnanchor_167-3"></a><a href="#footnote_167-3" class=
+"fnanchor">[167-3]</a> It sometimes <span class='pagenum'>[Pg 57]</span>
+happens that a species of labor can be utilized only by a small circle of
+persons who demand it. But the wages for it is raised very high by the
+great solvability of those who do demand it. How frequently it happens, for
+instance, that a minister is paid a very high salary for the ability he
+possesses of making complicated and dry affairs of state attractive to the
+personal taste of his sovereign.<a name="fnanchor_167-4" id=
+"fnanchor_167-4"></a><a href="#footnote_167-4" class="fnanchor">[167-4]</a>
+Here, particularly, the confidence which the workman inspires by his skill
+and fidelity enters as an element. Without this confidence, there are many
+kinds of business which would be crushed out entirely by the control it
+would be necessary to subject them to, and others would not be possible at
+all.<a name="fnanchor_167-5" id="fnanchor_167-5"></a><a href=
+"#footnote_167-5" class= "fnanchor">[167-5]</a> When, for instance, in a
+large manufacturing establishment, understrappers, workmen, foremen,
+subordinate superintendents, directors, etc., draw different salaries,
+their pay, if equitably graduated, should be in harmony with the principles
+laid down in § 148, The head of a manufacturing establishment, for
+instance, who has organized a more perfect division and coöperation of
+labor, himself, and by means of which ten men are enabled to perform <span
+class='pagenum'>[Pg 58]</span> the work before performed by twenty, may
+equitably retain, as the reward of his organizing power, a considerable
+amount of what was previously paid out in wages. Louis Blanc's proposition,
+that all should receive equal salaries is, as Bastiat remarks, equivalent
+to the assertion that a yard of cloth manufactured by a lazy or unskillful
+workman is worth as much as two yards manufactured by an industrious and
+skillful one.<a name="fnanchor_167-6" id="fnanchor_167-6"></a><a href=
+"#footnote_167-6" class="fnanchor">[167-6]</a></p>
+
+<p>Such qualified labor, as is treated of here, may be most accurately
+estimated, the quality of which supposes a certain cost of acquisition.
+This cost may be considered as the outlay of so much capital, which, with
+interest,<a name="fnanchor_167-7" id="fnanchor_167-7"></a><a href=
+"#footnote_167-7" class="fnanchor">[167-7]</a> should come back to the
+workman in his wages. Otherwise, others would be deterred from entering the
+same business by the example of his loss. Here, especially, it is necessary
+to take into account the long period of apprenticeship or tuition, and the
+large fees paid for the same; and this, whether they depend on the natural
+difficulties in the way of acquirement or on artificial obstacles opposed
+to freedom of competition.<a name= "fnanchor_167-8" id=
+"fnanchor_167-8"></a><a href= "#footnote_167-8" class=
+"fnanchor">[167-8]</a> The influence of these circumstances is particularly
+great in <span class='pagenum'>[Pg 59]</span> those kinds of labor which
+require a "liberal" education.<a name="fnanchor_167-9" id=
+"fnanchor_167-9"></a><a href= "#footnote_167-9" class=
+"fnanchor">[167-9]</a> Among the costs of production proper, peculiar to
+this labor-force, must be included, also, the necessary support of the
+workman, during the interval between the completion of his studies and the
+beginning of his full reward.<a name= "fnanchor_167-10" id=
+"fnanchor_167-10"></a><a href= "#footnote_167-10" class=
+"fnanchor">[167-10]</a></p>
+
+<p>When a species of work requires special current expenses to be made in
+order to its proper performance, these also should of course be made good
+to the workman in his wages. Most intellectual labor, for instance,
+requires quiet surroundings. The brain-worker cannot share his study with
+his family, and, therefore should receive wages or remuneration large
+enough in amount to enable him to arrange his dwelling accordingly. A
+similar circumstance, only in a much higher degree, enhances the price paid
+for diplomatic service.</p>
+
+ <p class="footnote"> <a name="footnote_167-1" id="footnote_167-1"></a>
+ <a href="#fnanchor_167-1">[167-1]</a>
+ Excellent germs thereof in <i>Adam Smith</i>, Wealth of Nat., I, ch. 10,
+ 1. Earlier yet, in <i>Galiani</i>, Della Moneta, I, 2. <i>Cantillon</i>,
+ Nature du Commerce, 24 ff.</p>
+
+ <p class="footnote"> <a name="footnote_167-2" id="footnote_167-2"></a>
+ <a href="#fnanchor_167-2">[167-2]</a>
+ Even in the case of mere manual labor, for instance, a skillful packer of
+ goods is paid higher wages than a mere day laborer; a sower better than a
+ plowman or a digger; a vintner, in general, better than an agricultural
+ laborer: in the Palatinate of the Rhine, in the ratio of 36:24. Thus,
+ almost anyone can paint a door or a house, while an artist possesses a
+ species of natural monopoly.</p>
+
+ <p class="footnote"> <a name="footnote_167-3" id="footnote_167-3"></a>
+ <a href="#fnanchor_167-3">[167-3]</a>
+ Thus, the Greek juggler, who understood how to throw lintels from a
+ certain distance through the eye of a needle, was very appropriately
+ rewarded by his king with a bushel of lintels. On the other hand, the high
+ fee paid for an operation for cataract depends both on the great
+ importance of the eye which cannot be replaced in any way, and on the
+ rarity of the courage among doctors to pierce the eye of a living man.
+ Very remarkable achievements, which it requires great education to
+ understand, are generally paid for at a very low rate. (<i>Stein</i>,
+ Lehrbuch, 123.)</p>
+
+ <p class="footnote"> <a name="footnote_167-4" id="footnote_167-4"></a>
+ <a href="#fnanchor_167-4">[167-4]</a>
+ I need only recall <i>Richelieu</i> and <i>Mazarin</i>, the last of whom
+ left an estate worth 200,000,000 livres. (<i>Voltaire</i>, Siècle de Louis
+ XIV., ch. 6.) In Parisian industries, few workmen are as well paid as
+ those who are skilled in rapidly effecting changes of form. The so-called
+ <i>premières de modes</i> frequently received more than 1,800 francs a
+ year, while the <i>apprêteuses</i> received only from 15 to 20 sous a day.
+ (Revue des deux Mondes, Sept. 15, 1850.) There are women there paid very
+ well for making pin-cushions, pen-wipers, etc., each one of a different
+ form; but as soon as any one form ceases to be a novelty, the wages paid
+ for making it sinks to a minimum. (<i>M. Mohl</i>,
+ Gewerbswissenschaftliche Reise durch Frankreich, 87.)</p>
+
+ <p class="footnote"> <a name="footnote_167-5" id="footnote_167-5"></a>
+ <a href="#fnanchor_167-5">[167-5]</a>
+ Jewelers, lawyers, statesmen, generals. <i>Senior</i> says that of the
+ income of £4,000 which a lawyer or a doctor draws, only £40 are wages for
+ his labor; £3,000 are a rent paid for the possession of extraordinary
+ talent, or for his good luck, and £960 as the interest on his intellectual
+ capital, which is also the chief element of wealth. (Outline, 134.)</p>
+
+ <p class="footnote"> <a name="footnote_167-6" id="footnote_167-6"></a>
+ <a href="#fnanchor_167-6">[167-6]</a>
+ On the sad experience of the tailors' association founded by Louis Blanc
+ himself, at Clichy, and in consequence of which they soon gave up paying
+ equal wages and returned to piece wages, see Journal des Economistes,
+ Mars, 1850, 349.</p>
+
+ <p class="footnote"> <a name="footnote_167-7" id="footnote_167-7"></a>
+ <a href="#fnanchor_167-7">[167-7]</a>
+ As the interest on land improvements assumes the character of rent, so
+ also does that of the education of labor the character of wages. The rate
+ of interest usual in a country, and the average duration of the life of
+ the workman affect the capital thus invested as a species of annuity.</p>
+
+ <p class="footnote"> <a name="footnote_167-8" id="footnote_167-8"></a>
+ <a href="#fnanchor_167-8">[167-8]</a>
+ Wages in the country are generally lower than in the cities. In the
+ electorate of Hesse, for instance, on the supposition of steady
+ employment, males, in the country, received 69 thalers, 23 silver
+ groschens a year; females, 55 thalers, 9 silver groschens; in the cities,
+ on the other hand, males, 88 thalers, 23 silver groschens, and females 61
+ thalers, 28 silver groschens. (<i>Hildebrand</i>,<a name= "fnanchor_TN10"
+ id= "fnanchor_TN10"></a><a href= "#footnote_TN10" class= "fnanchor">[TN
+ 10]</a> statistische Mittheilungen, 101, 137.) And so, according to
+ <i>Colquhoun</i>, Treatise on Indigence, 1806, the English agricultural
+ laborers received, on an average, £31 per annum, and manufacturing
+ workmen, £55. The reason of this is, besides the greater facility of
+ learning how to perform agricultural labor, the greater dearness of living
+ in cities, and in England also, because industry has developed much more
+ rapidly than agriculture.</p>
+
+ <p class="footnote"> <a name="footnote_167-9" id="footnote_167-9"></a>
+ <a href="#fnanchor_167-9">[167-9]</a>
+ The cost of bringing up a common laborer, in England, according to
+ <i>Senior</i>, is £40; a gentleman, £2,040. (Outlines, 205.) The more
+ expensive an education which one acquires for its own sake and without any
+ special object beyond this in view, is, the less can the capital laid out
+ in it affect wages. (<i>von Mangoldt</i>, V. W. L., 382.)</p>
+
+ <p class="footnote"> <a name="footnote_167-10" id="footnote_167-10"></a>
+ <a href="#fnanchor_167-10">[167-10]</a>
+ If the salaries of clergymen are, on an average, lower than the income of
+ a lawyer or a doctor, it is partly because theological candidates are
+ provided for much earlier, and partly because of the lesser cost attending
+ the study of theology. Thus, at the end of the eighteenth century, there
+ were 350 students at the University of Tubingen who are maintained gratis,
+ on foundation-money, and who had previously attended monastery schools,
+ free of charge. (<i>Nicolai</i>, Reisebescreibungen, XI, 73.) The
+ remarkable contrast between the high wages of the Athenian sophists and
+ the low wages of modern abbés, Adam Smith accounts for principally by the
+ many scholarships of modern times. In Saxony, in 1850 etc., the outlay by
+ the state and of foundation-funds for the education of a student amounted
+ to an average of nearly 140 thalers. (<i>Engel.</i>)</p>
+
+<p class="p2 center"><a name="S168"></a>SECTION CLXVIII.</p>
+
+<p class="center smaller">DIFFERENCE OF WAGES IN DIFFERENT BRANCHES OF
+LABOR.<br />
+(CONTINUED.)</p>
+
+<p>B. The great economic risk of the work. When a branch of labor necessary
+to a country is, notwithstanding, attended <span class='pagenum'>[Pg
+60]</span> by many chances of failure to the individual who devotes himself
+to it, a sufficient supply of the labor can be relied on only in case that
+the danger attending it is compensated for by a corresponding premium paid
+to success.<a name="fnanchor_168-1" id="fnanchor_168-1"></a><a
+href="#footnote_168-1" class="fnanchor">[168-1]</a> The choice of a
+profession or avocation, Adam Smith has compared to a lottery, in which the
+fortunate winners gain only what the unfortunate have lost. The greater the
+prizes, the greater also the number of blanks.<a name="fnanchor_168-2"
+id="fnanchor_168-2"></a><a href="#footnote_168-2" class=
+"fnanchor">[168-2]</a> However, the surplus wages in risky kinds of labor
+are not sufficient to constitute a full insurance premium. This is
+connected with the vanity of men who, as a rule, over-estimate not only
+their talent but their good fortune,<a name="fnanchor_168-3"
+id="fnanchor_168-3"></a><a href="#footnote_168-3" class=
+"fnanchor">[168-3]</a> and especially in youth, when they decide on the
+choice of a profession, etc. According to this, wages must be specially low
+where even complete failure does not <span class='pagenum'>[Pg 61]</span>
+endanger the living or the social position of the workman. Partly on this
+account are the industries carried on by women so poorly remunerated;<a
+name="fnanchor_168-4" id="fnanchor_168-4"></a><a href="#footnote_168-4"
+class="fnanchor">[168-4]</a> as also such work as is done by a large class
+of people to fill up their leisure hours.<a name="fnanchor_168-5"
+id="fnanchor_168-5"></a><a href="#footnote_168-5" class=
+"fnanchor">[168-5]</a></p>
+
+<p>The prospect of frequent interruptions in any kind of labor must have
+the same effect on the wages paid for it as its economic or business
+risk.<a name="fnanchor_168-6" id="fnanchor_168-6"></a><a href=
+"#footnote_168-6" class="fnanchor">[168-6]</a> Thus, for instance, a mason
+or roofer must earn at least enough, during the days he can work, to enable
+him to live during the time he is prevented working by bad weather. Hence,
+the highness of his wages <span class='pagenum'>[Pg 62]</span> may, in some
+respects, be called an apparent one.<a name="fnanchor_168-7"
+id="fnanchor_168-7"></a><a href="#footnote_168-7" class=
+"fnanchor">[168-7]</a> Wages paid by the week more generally tend to
+equality than wages paid by the day, and more so yet wages paid by the
+year, for then winter and summer compensate the one for the other. When the
+workman must be ever ready to perform his task, account must be taken not
+only of the number of hours he is engaged, but also of fractions of his
+waiting hours, which must be paid for likewise.<a name="fnanchor_168-8"
+id="fnanchor_168-8"></a><a href="#footnote_168-8" class=
+"fnanchor">[168-8]</a> Two half days cost almost everywhere more than one
+whole one.</p>
+
+<p>The number of holidays plays a very important part here. In Protestant
+countries, the workman must, in about three hundred work days, earn enough
+to live on for about sixty holidays as well. In Catholic countries, before
+the time of Clement XIV., he had to earn enough in addition to support
+<span class='pagenum'>[Pg 63]</span> himself for about one hundred and
+fifty holidays, on ninety of which he performed no work whatever.<a
+name="fnanchor_168-9" id="fnanchor_168-9"></a><a href="#footnote_168-9"
+class="fnanchor">[168-9]</a> So large a number of holidays produces a
+higher rate of wages or necessitates a low standard of life among the
+working classes.<a name="fnanchor_168-10" id="fnanchor_168-10"></a><a
+href="#footnote_168-10" class= "fnanchor">[168-10]</a> Something similar is
+true of evening leisure and rest;<a name="fnanchor_168-11" id=
+"fnanchor_168-11"></a><a href="#footnote_168-11" class=
+"fnanchor">[168-11]</a> <i>i. e.</i>, of the time when labor ceases.</p>
+
+ <p class="footnote"> <a name="footnote_168-1" id="footnote_168-1"></a>
+ <a href="#fnanchor_168-1">[168-1]</a>
+ The greater the preparatory cost of labor is, the more difficult it is for
+ workmen to go from one kind of labor to another; but, at the same time,
+ the more certain it is that, without the inducement of a premium paid,
+ there will be no after increase or recruiting of labor-force.</p>
+
+ <p class="footnote"> <a name="footnote_168-2" id="footnote_168-2"></a>
+ <a href="#fnanchor_168-2">[168-2]</a>
+ Thus, for instance, in the country, where doctors generally get along well
+ enough, the most skillful never obtains any very distinguished position.
+ But, in large cities, on the other hand, there is the greatest difference
+ between first-class physicians and obscure practitioners. Great generals
+ usually obtain a larger income and greater influence than great admirals;
+ and so it is that prizes in the military lottery are greater, and there
+ are therefore more blanks than in the naval lottery. The common soldier is
+ almost everywhere worse paid than the common sailor. (<i>Adam Smith.</i>)
+ To some extent, this depends on the prison-like life of the seaman in
+ times of service, and in the absence of an attractive uniform. As to the
+ extent that the lottery comparison is defective, see <i>Macleod</i>,
+ Elements, 215.</p>
+
+ <p class="footnote"> <a name="footnote_168-3" id="footnote_168-3"></a>
+ <a href="#fnanchor_168-3">[168-3]</a>
+ Who, otherwise, would have anything to do with a lottery in which the mass
+ of players were certain to lose, and the keeper of it to gain? And this
+ accounts for the fact well known to all financiers, that the amount of the
+ budget remaining the same, a greater eagerness to enter the military
+ service of the country is inspired by endowing the higher positions
+ munificently&mdash;provided they are attainable by all&mdash;and paying
+ the lower ones in a very niggardly way, than when the pay is made more
+ uniform. Something similar is to be observed in the ecclesiastical service
+ of the Roman and Protestant churches, inasmuch as the former, considered
+ from an economic point of view, offers more magnificent prizes, but also
+ more blanks, while the latter divides its emoluments more equally.</p>
+
+ <p class="footnote"> <a name="footnote_168-4" id="footnote_168-4"></a>
+ <a href="#fnanchor_168-4">[168-4]</a>
+ As most seamstresses are, when the worst comes to the worst, supported by
+ their parents, connections by marriage, brothers, etc., the condition of
+ those who have to live by their needle must be a pretty hard one. Who is
+ not familiar with the refrain to <i>Hood's</i> celebrated song of the
+ shirt: "Oh God, that bread should be so dear, and flesh and blood so
+ cheap!" There is a "distressed needlewoman's society" in London. They
+ undoubtedly suffer from an overcrowding of their avocation, yet their
+ chief desire is that the competition of all who do not live exclusively by
+ the labor of their hands should be prohibited; for instance, that of
+ seamstresses who are paid for their work outside of factories. (Edinb.
+ Rev., 1851, 24.) In Paris, in 1845, the yearly earnings of women workers
+ averaged 375 francs, their yearly wants 500 francs. (Journal des
+ Economistes, X, 250.) This does not apply to female servants whose wages,
+ especially in highly cultured localities as the vicinity of large cities
+ (Holstein, Brandenburg), is very high. In England, the wages of female
+ domestics is frequently higher than in the United States; and hence nearly
+ two-thirds of all English girls between fifteen and twenty-five years of
+ age serve as maids. <i>Browning</i>, Political and Domestic Condition of
+ Great Britain, 413; <i>Carey</i>, Rate of Wages, 92. A remarkable
+ indication that women thrive only in the family. (Compare § 250.)</p>
+
+ <p class="footnote"> <a name="footnote_168-5" id="footnote_168-5"></a>
+ <a href="#fnanchor_168-5">[168-5]</a>
+ Thus, the darning of stockings in the sandy parts of North Germany, in the
+ Highlands of Scotland, in the Faroe Islands, and formerly, even in the
+ ante-rooms of the Russian nobility. (<i>Schlözer</i>, Anfangsgründe der
+ Staatswirthsch, I, 126.) Flax spinning and linen weaving in Westphalia and
+ Ireland, and wool weaving in the East Indies. Manufacturing industries
+ must be in a very highly developed condition, and machinery carried to a
+ high degree of perfection to compete in price with these accessory
+ industries. Cheapness of many products manufactured in convents and
+ monasteries.</p>
+
+ <p class="footnote"> <a name="footnote_168-6" id="footnote_168-6"></a>
+ <a href="#fnanchor_168-6">[168-6]</a>
+ Among these interruptions, may also be reckoned the prospect the laborer
+ has of being early incapacitated for work, and thus of seeing himself cut
+ off from every other source of support. This is one of the principal
+ reasons why opera singers are generally better paid than actors.</p>
+
+ <p class="footnote"> <a name="footnote_168-7" id="footnote_168-7"></a>
+ <a href="#fnanchor_168-7">[168-7]</a>
+ In Leipzig, in 1863, mason and carpenter journeymen earned during the
+ summer, from twenty silver groschens to one thaler, ordinary garden
+ workmen, 20 silver groschens, while shoemaker journeymen did not make much
+ more than 3½ thalers a week, and manual laborers, only from 10 to 15
+ silver groschens a day. The masons of Paris have the reputation of being
+ the best patrons of the savings banks, and, on that account, are more
+ exposed to being attacked by thieves than any other class.
+ (<i>Frégier</i>, Des Classes dangereuses, II, 3, 1.) High wages paid for
+ threshing in East Prussia, because, the workman during the winter can be
+ employed in very few different kinds of labor, and therefore must earn his
+ entire support by threshing. In Paris, of 101,000 persons engaged in
+ industry in 1860, 6,400 had to calculate on no interruption of their work,
+ the remaining number, however, lost with a certain degree of regularity,
+ from 2 to 4 months a year. (Revue des deux Mondes, 15 Fév., 1865.) If the
+ interruption can be so accurately estimated in advance that the workman
+ may engage in some business for himself during the interval, as for
+ instance when the workmen in the Bavarian breweries work during the summer
+ as masons, its influence on wages decreases. (<i>Storch</i>, Handbuch, I,
+ 192.) As to how, in Switzerland, since 1850, the guaranty of full
+ employment to masons in winter is considered as an addition to the wages
+ of summer, see <i>Böhmert</i>, Arbeiterverhältnisse, I, 141.</p>
+
+ <p class="footnote"> <a name="footnote_168-8" id="footnote_168-8"></a>
+ <a href="#fnanchor_168-8">[168-8]</a>
+ <i>Commissionaires</i>, hack-drivers, <i>Extraposthalter</i> in Germany,
+ porters, nurses, guides, servants in watering places and countries visited
+ by tourists. A London porter gets at least a shilling an hour. If employed
+ by the day, he of course gets smaller wages. Image venders, who travel
+ from house to house, sell their wares much lower at their own houses. The
+ person who calls them in from the street is obliged to pay them not only
+ for this one journey, but for several others which yielded them no
+ profit.</p>
+
+ <p class="footnote"> <a name="footnote_168-9" id="footnote_168-9"></a>
+ <a href="#fnanchor_168-9">[168-9]</a>
+ If we call the minimum daily need or the absolute requirement of the
+ workman = m, the rate of daily wages in the former case must amount to at
+ least m + m/6; in the latter, on the other hand, to m + m/4. A Bavarian
+ holiday estimated at a <i>minus</i> of much more than 1,000,000 florins.
+ (<i>Hermann</i>, II, Anfl., 192.)</p>
+
+ <p class="footnote"> <a name="footnote_168-10" id="footnote_168-10"></a>
+ <a href="#fnanchor_168-10">[168-10]</a>
+ <i>Von Sonnenfels</i>, Polit. Abhandlungen, 1777, 332 ff.</p>
+
+ <p class="footnote"> <a name="footnote_168-11" id="footnote_168-11"></a>
+ <a href="#fnanchor_168-11">[168-11]</a>
+ In a part of Lower Bavaria, in which there were 204 holidays in a year,
+ among them the anniversaries of the consecration of 40 churches in the
+ country about, and a feast day following each such anniversary, as well as
+ target-shooting festivals, the celebration begins at 4 o'clock <span
+ class="smcap">P. M.</span> of the preceding day. (<i>Rau</i>, Lehrbuch, I,
+ § 193.)</p>
+
+<p class="p2 center"><a name="S169"></a>SECTION CLXIX.</p>
+
+<p class="center smaller">THE DISAGREEABLENESS OF CERTAIN CLASSES OF
+LABOR.&mdash;ITS EFFECT ON WAGES.</p>
+
+<p>C. Lastly, the personal disagreeableness of the work, which must be
+compensated for by higher wages. The uncleanness of a coal-worker's task,
+that of the chimney-sweep, and the repulsive labor of the butcher, demand
+high compensation, while other branches of business, themselves productive
+of pleasure, and therefore engaged in by many for pleasure's sake only,
+yield relatively little to those who engage in them as a regular
+industry.<a name="fnanchor_169-1" id="fnanchor_169-1"></a><a href=
+"#footnote_169-1" class="fnanchor">[169-1]</a></p>
+
+<p>To this category belong the kinds of labor which require extraordinary
+effort,<a name="fnanchor_169-2" id="fnanchor_169-2"></a><a href=
+"#footnote_169-2" class="fnanchor">[169-2]</a> or which put life or health
+in unusual <span class='pagenum'>[Pg 64]</span> jeopardy.<a
+name="fnanchor_169-3" id="fnanchor_169-3"></a><a href="#footnote_169-3"
+class="fnanchor">[169-3]</a> But, indeed, when the danger attending any
+kind of work is made glorious by the romantic light of honor, or by still
+higher motives, it ceases to have any influence on wages.<a name=
+"fnanchor_169-4" id="fnanchor_169-4"></a><a href="#footnote_169-4" class=
+"fnanchor">[169-4]</a> On the other hand, the disreputableness of a
+business in itself raises wages;<a name="fnanchor_169-5" id=
+"fnanchor_169-5"></a><a href="#footnote_169-5" class="fnanchor">[169-5]</a>
+whereas, scholars, poets, etc., leaving the charm inherent in their
+occupations out of account, are for the most part remunerated only by the
+honor paid them, and, not <span class='pagenum'>[Pg 65]</span>
+unfrequently, only by fame after they have gone hence.<a name=
+"fnanchor_169-6" id="fnanchor_169-6"></a><a href= "#footnote_169-6"
+class="fnanchor">[169-6]</a> And yet their talents are so rare, the
+preparation so laborious, the economic risk so great! Nor is there for the
+really creative workman any such thing as evening rest. (<i>Riehl.</i>)
+Common intellectual labor is worse paid in our days than it was,
+comparatively speaking, a generation ago; because the increased average
+education makes it less burthensome to most people, and even seem
+positively agreeable to many. It would, indeed, be a dangerous
+retrogressive step towards barbarism, if it should come to such a pass,
+that labor preponderantly intellectual should be permanently more poorly
+remunerated than mere muscular labor.<a name="fnanchor_169-7" id=
+"fnanchor_169-7"></a><a href="#footnote_169-7" class=
+"fnanchor">[169-7]</a> <a name="fnanchor_169-8" id= "fnanchor_169-8"></a><a
+href= "#footnote_169-8" class= "fnanchor">[169-8]</a></p>
+
+ <p class="footnote"> <a name="footnote_169-1" id="footnote_169-1"></a>
+ <a href="#fnanchor_169-1">[169-1]</a>
+ Thus the chase, fishing in rivers (compare <i>Theocrit.</i>, Idyll., 21),
+ gardening, fine female manual labor, and literature.</p>
+
+ <p class="footnote"> <a name="footnote_169-2" id="footnote_169-2"></a>
+ <a href="#fnanchor_169-2">[169-2]</a>
+ The high wages paid to mowers and threshers may be accounted for on this
+ ground (§ 160). In countries that have a strong heavy soil, wages are
+ frequently 20 per cent. higher than under circumstances otherwise similar
+ where it is sandy or light. In Mexico, a digger gets about twice the wages
+ of an agricultural laborer. (<i>Senior</i>, On the Value of Money,
+ 56.)</p>
+
+ <p class="footnote"> <a name="footnote_169-3" id="footnote_169-3"></a>
+ <a href="#fnanchor_169-3">[169-3]</a>
+ Almost every trade predisposes to some special disease. Compare
+ <i>Halfort</i>, Enstehung, Verlauf und Behandlung der Krankheiten der
+ Künstler und Gewerbetreibenden, 1845. <i>Livy</i>, Traité d'Hygiène
+ publique et privée, 1850, II, 755. It has been noticed, in Sheffield, that
+ thoughtless steel polishers look unfavorably on certain new inventions
+ intended to protect workmen against inhaling small particles of stone and
+ iron dust. They dread that if these inventions come into general use,
+ their wages would be lowered in consequence; and prefer a short and merry
+ life to one longer and more quiet.</p>
+
+ <p class="footnote">In places in which nearly all kinds of work are
+ dangerous, the danger cannot of course relatively raise the wages of
+ anyone. Thus, in the Thuringian forest, the wages of the haulers of wood
+ are very low. (<i>Lotz</i>, Revision, III, 151.)</p>
+
+ <p class="footnote"> <a name="footnote_169-4" id="footnote_169-4"></a>
+ <a href="#fnanchor_169-4">[169-4]</a>
+ Missionaries! Besides the extremely small wages paid to common soldiers
+ (in the German infantry only 36.5 thalers cash per annum, to which in
+ Leipzig, for instance, rations, etc., add about 34 thalers more) is an
+ outlay made by the government principally to effect a levy of the tax of
+ the compulsory labor that lies in conscription. (<i>Knies.</i>) In the
+ volunteer system, the difference between officers and men is wont to be
+ much smaller. Thus, <i>Gustav Wasa</i> paid his German mercenaries as
+ follows: 6 marks a month to captains, five to lieutenants and 4 to common
+ soldiers. (<i>Geijer</i>, Schwed. Gesch., II, 125 seq.) Similarly in the
+ case of the Greek hired troops. (<i>Böckh</i>, Staatshaushalt der Athener,
+ I, 165 ff.) As to how little at the outbreak of a war, soldier earnest
+ money is increased, and positions as officers most sought after, see
+ <i>Hermann</i>, II, Aufl., 479.</p>
+
+ <p class="footnote"> <a name="footnote_169-5" id="footnote_169-5"></a>
+ <a href="#fnanchor_169-5">[169-5]</a>
+ Thus, for instance, the skinning or flaying of dead animals is
+ comparatively well paid, to which the rarity of the application of the
+ work of executioners contributes. (<i>J. Moser</i>, Patr. Ph., I, No. 34.)
+ The high wages of actors, singers, dancers, and especially of the female
+ members of the stage, depends principally on the contempt with which they
+ were formerly looked upon; excommunicated by the Catholic church, and a
+ scarcely milder sentence passed upon them by the Protestant, until about
+ the middle of the eighteenth century. (<i>Schleiermacher</i>, Christliche
+ Sitte, 681.) Compare even <i>J. J. Rousseau</i>, Lettre sur les Spectacles
+ à Mr. d'Alembert sur son Article Genève.</p>
+
+ <p class="footnote"> <a name="footnote_169-6" id="footnote_169-6"></a>
+ <a href="#fnanchor_169-6">[169-6]</a>
+ <i>Schiller's</i> "Theilung der Erde." <i>Blanqui</i> says of the learned:
+ "They are most frequently satisfied with a citizen-crown, and think
+ themselves remunerated when justice has been done to their genius. Their
+ magnanimity impels them, to their own injury, to diffuse their knowledge
+ as rapidly as possible. Thus they are like the light of day which no one
+ pays for, but which all enjoy, without thanking the giver as they ought."
+ The reward of intellectual labor is called an <i>honorarium</i>.
+ (<i>Riehl</i>, Die Deutsche Arbeit, 1861, 232.) According to <i>J. B.
+ Say</i>, Traité, II, ch. 7, the poor wages of savants depends on the fact
+ that they take to market, and all at once, a great quantity of what they
+ produce, which cannot even be used up.</p>
+
+ <p class="footnote"> <a name="footnote_169-7" id="footnote_169-7"></a>
+ <a href="#fnanchor_169-7">[169-7]</a>
+ In Switzerland, journeymen are often better paid than the clerks kept by
+ the greater tradesmen. (<i>Böhmert</i>, Arbeiterverhältnisse, II, 168.) In
+ England, also, since 1850, the wages for "unskilled labor" has risen,
+ relatively, most. (<i>Tooke</i>, Hist. of Prices, VI, 177.) It would be a
+ frightful peril to our whole civilization if school teachers and
+ subordinate officials should be turned into enemies of the entire existing
+ state of things by want.</p>
+
+ <p class="footnote"> <a name="footnote_169-8" id="footnote_169-8"></a>
+ <a href="#fnanchor_169-8">[169-8]</a>
+ The high wages paid to engineers on railroads is accounted for by the
+ wear, physical and mental, their employment entails, and also by their
+ unavoidable expenses away from home; further, by the importance of the
+ interests confided to their trust. On the Leipzig-Dresden Railway,
+ locomotive engineers, for the most part previously journeymen blacksmiths,
+ earned 900 thalers a year. Similarly, in the case of pilots. The high
+ wages paid on board ships engaged in the slave-trade arose from the
+ unhealthiness of the African coast, where formerly one-sixteenth of the
+ crew died yearly (Edinburg Rev., 480), from the moral turpitude of the
+ business, and from the severe penalties under which it was afterwards
+ prohibited. On the other hand, the low wages paid to European mining
+ laborers is largely the consequence of the certainty of being cared for in
+ old age, of those so employed. Weavers' wages are low because the facility
+ of learning the trade makes it possible for the business to be carried on
+ at home; and hence there is a comparatively great pressure to engage in
+ it. (<i>Baines</i>, History of the Cotton Manufacture, 485 ff.)</p>
+
+ <p class="footnote">According to the first annual report of the poor law
+ commissioners (202), the weekly wages in Manchester of hod-carriers was
+ 12s.; of hand-weavers, 7-15s.; of diggers, 10-15s.,; of pack-carriers,
+ 14-15s.; of shoemakers, 15-16s.; of machine-weavers, 13-16-5/6s.; of
+ white-washers, 18s.; of tailors, 18s.; of dyers, 15-20s.; of plasterers,
+ 19-21s.; of masons, 18-22s.; of tinsmiths, 22-24s.; of carpenters, 24s.;
+ of spinners, 20-25s.; of machinists, 26-30s.; of iron founders and
+ power-loom tenders, 28-30s. In Belgium, the average daily wages for male
+ labor was 1.18 francs for agricultural laborers; for those engaged in
+ industry, 1.48 francs; in the manufacture of linen, 0.80<a name=
+ "fnanchor_TN11" id= "fnanchor_TN11"></a><a href= "#footnote_TN11" class=
+ "fnanchor">[TN 11]</a> francs; of cotton, 1.55; of woolens, 1.62; of silk,
+ 1.25; of stockings, 1.14; of glass, 2.58; of coal, 1.33. All according to
+ the Statistique générale de la B. In Athens, in the time of Aristophanes,
+ a pack-carrier earned 4 oboli a day; a street sweeper, 3; a stone cutter
+ on the public works, 6; a carpenter, 5; for roofing houses and taking down
+ scaffoldings, each man, 6. The architects who superintended the building
+ of the temple of Polias, on the other hand, got only 6 oboli per day, and
+ the contractor 5. (<i>Böckh</i>, I, 165 ff.)</p>
+
+ <p class="footnote">The Edictum Diocletiani of the year 301 after Christ
+ contains the following provisions in relation to wages, besides "board:"
+ shepherds, camel-drivers and muleteers, 20 denarii; agricultural laborers,
+ water-carriers, scavengers, 25; bakers, masons, roofers, house-finishers
+ and repairers of the inside, lime burners, wheelwrights and common clay
+ moulders, 50; boatsmen, sailors, makers of marble or mosaic floors, 60;
+ wall painters, 70; clay moulders for statues, 75; artistic painters, 150.
+ (ed. <i>Mommsen</i>, cap. 7.) In slave countries, the price of different
+ slaves is to be judged, mainly, by the above rules. Concerning the Greeks,
+ see <i>Böckh</i>, I, 95 ff. <i>St. John</i>, The Hellenes, III, 23 ff. It
+ is a characteristic fact that the Romans, after the Syrian war, began to
+ pay high prices for the hitherto much despised kitchen slaves.
+ (<i>Livy</i>, XXXIX, 6.) Remarkable fixed prices for slaves by
+ <i>Justinian</i>: Cod. VI, 43, 3; VII, 7, 1, 5. Thus, in the Lex
+ Burgundionum, tit. 10, the compensation for the murder of a common laborer
+ is fixed at 30 solidi; of a carpenter, at 40; of a smith, at 50; of a
+ silversmith, at 100; of a goldsmith, at 150. Advanced civilization is wont
+ to raise the price of slaves who perform work of a higher quality, just as
+ it raises the wages of labor of a higher quality.</p>
+
+
+<p class="p2 center"><a name="S170"></a>SECTION CLXX.<span
+class='pagenum'>[Pg 66]</span></p>
+
+<p class="center smaller">RATE OF WAGES.&mdash;INFLUENCE OF CUSTOM.</p>
+
+<p>Custom always exerts a great influence where there is question of
+choosing an avocation with the intention of devoting <span
+class='pagenum'>[Pg 67]</span> one's self to it entirely and exclusively.
+There is a public opinion which fixes the gradation of the different
+classes of labor and their appropriate reward, which is slow to change, and
+which both determines, and is determined by the relation of supply and
+demand. There is an equilibrium between the pleasantness of work and the
+rate of wages only in the case of such kinds of labor as are on the same
+social footing. It frequently happens, however, that the most repulsive
+work has to be performed by those who are forced to accept any pay and to
+be satisfied with it.<a name="fnanchor_170-1" id="fnanchor_170-1"></a><a
+href="#footnote_170-1" class="fnanchor">[170-1]</a> There are many branches
+of labor those engaged in which still form a kind of exclusive caste; and
+the pay of the higher branches is maintained at a high rate, especially by
+the fact that the members of the castes to which they belong are provident
+in their marriages. The lower classes are not in a condition to meet the
+preparation necessary to engage in such professions, even if they were
+certain of being afterwards reimbursed with interest for the outlay.<a
+name="fnanchor_170-2" id="fnanchor_170-2"></a><a href= "#footnote_170-2"
+class="fnanchor">[170-2]</a> One of the chief causes of the lowness of
+wages paid to women is, that so few branches of labor are traditionally
+open to them, that the few that are, are intended to supply luxuries, and
+are, besides, for the most part, over-crowded. The distribution of the
+aggregate wages earned by any industry, among the higher and lower classes
+of workmen who coöperate in it, depends very largely on their social
+position relatively to one another.<a name="fnanchor_170-3"
+id="fnanchor_170-3"></a><a href= "#footnote_170-3" class="fnanchor">[170-3]
+</a><a name= "fnanchor_170-4" id="fnanchor_170-4"></a><a
+href="#footnote_170-4" class= "fnanchor">[170-4]</a> Here political forms
+and changes may exert the greatest influence.<a name="fnanchor_170-5" id=
+"fnanchor_170-5"></a><a href="#footnote_170-5" class="fnanchor">[170-5]</a>
+</p>
+
+<p><span class='pagenum'>[Pg 68]</span>Thus, the artificial increase of the
+wages of masters effected by the former guild-system was produced, to say
+the least, as much at the cost of the journeymen and apprentices as of the
+public. And if, on the other hand, it cannot be said that the most recent
+marked rise in wages, in so many countries, is merely the consequence of
+the extension of the parliamentary right of suffrage, certain it is that
+the two phenomena are very closely related, and that both are at once the
+effect and the cause of the intensified feeling of individuality and of the
+consciousness of constituting a class in the community of the lower strata
+of society.</p>
+
+ <p class="footnote"> <a name="footnote_170-1" id="footnote_170-1"></a>
+ <a href="#fnanchor_170-1">[170-1]</a>
+ At least where the supply of labor in general surpasses the demand.
+ Compare <i>J. S. Mill</i>, Principles, II, ch. 14, 3d ed. The dangerous
+ industries in which lead, quicksilver, arsenic, etc. are manipulated or
+ employed, should be and can be better paid than they actually are. In the
+ Bavarian Palatinate, stone-cutters rarely reach their 45th year; and yet
+ their wages are very low, because of the comparative over-population of
+ the country. (<i>Rau</i>, <i>Haussen's</i> Archiv., N. T. X., 228.) But
+ the lowness of wages here is certainly and mainly caused by the little
+ thought the workmen themselves give to considerations of health.</p>
+
+ <p class="footnote"> <a name="footnote_170-2" id="footnote_170-2"></a>
+ <a href="#fnanchor_170-2">[170-2]</a>
+ The lower the rate of wages of any class sinks, the more difficult it
+ becomes for parents to devote their children to another career.</p>
+
+ <p class="footnote"> <a name="footnote_170-3" id="footnote_170-3"></a>
+ <a href="#fnanchor_170-3">[170-3]</a>
+ In Paris, 24,463 workmen with less than 3 francs daily; 157,216, with from
+ 3 to 5; 10,393, with from 5 to 20 and even 3 to 5 francs. It is
+ remarkable, however, how uniform the average wages in the different trades
+ is: <i>vêtements</i>, 3.33 francs; <i>fils et tissus</i>, 3.42;
+ <i>boisellerie</i>, <i>vannerie</i>, 3.44; <i>garçons boulangers</i>,
+ <i>bouchers</i> 3.50; <i>arts chimiques et céramiques</i> 3.71;
+ <i>bâtiments</i>, 3.81; <i>carosserie</i>, 3.86; <i>peaux et cuirs</i>,
+ 3.87; <i>ameublement</i>, 3.90; <i>articles de Paris</i>, 3.94; <i>métaux
+ communs,</i> 3.98; <i>métaux précieux</i>, 4.17; <i>imprimerie</i>, 4.18.
+ (Journal des Economistes, Janv. 1853, 111.)</p>
+
+ <p class="footnote"> <a name="footnote_170-4" id="footnote_170-4"></a>
+ <a href="#fnanchor_170-4">[170-4]</a>
+ How the Roman advocates were given to all sorts of ostentation, and even
+ borrowed costly rings in order to raise their <i>honoraria</i>, see
+ <i>Juvenal</i>, VII, 105, ff.</p>
+
+ <p class="footnote"> <a name="footnote_170-5" id="footnote_170-5"></a>
+ <a href="#fnanchor_170-5">[170-5]</a>
+ The salaries paid to the employees in the office of the minister of
+ finance in France and the United States were as follows: to the porter,
+ 1,500 and 3,734 francs; the lowest clerk, 1,000 to 1,800, and 5,420
+ francs; to the head clerk, 3,200 to 3,600, and 8,672 francs; the secretary
+ general, 20,000 and 10,840 francs; to the minister, 80,000 and 32,520
+ francs. (<i>Tocqueville</i>, Démocratie aux États-Unis, II, 74.) In the
+ treasury department, at Washington, of 158 employees, only 6 received less
+ than $1,000 salary, but only 2 over $2,000. (<i>M. Chevalier</i>, Lettres
+ sur l'Amérique du Nord, II, 151, 456.) Compare <i>Büsch</i>, Geldumlauf,
+ IV, 34. In Russia, the wages of the higher classes of laborers as compared
+ with those paid the commoner class is much higher than in Germany.
+ (<i>Kosegarten</i>, in <i>Haxthausen</i>, Studien, III, 583.) On the other
+ hand, in England, since 1850, the rate of wages for unskilled labor has
+ risen relatively more than any other. (<i>Tooke</i>, Hist. of Prices, VI,
+ 177.)</p>
+
+<p class="p2 center"><a name="S171"></a>SECTION CLXXI.<span
+class='pagenum'>[Pg 69]</span></p>
+
+<p class="center smaller">HISTORY OF THE WAGES OF COMMON LABOR.&mdash;IN
+THE LOWER STAGES OF CIVILIZATION.</p>
+
+<p>In very low stages of civilization, where there is scarcely any such
+thing as rent, and where capital is extremely rare, the wages of labor,
+notwithstanding its small amount absolutely speaking, must eat up the
+greatest part of the product.<a name="fnanchor_171-1" id=
+"fnanchor_171-1"></a><a href= "#footnote_171-1" class=
+"fnanchor">[171-1]</a> With every further advance, the condition of the
+laboring class is modified, according as the natural decline in this
+relative amount of their wages is outweighed or counterbalanced, or neither
+outweighed nor counterbalanced, by the increase in the aggregate product;
+in other words, in the national income in general as compared with the
+number of workmen.</p>
+
+ <p class="footnote"> <a name="footnote_171-1" id="footnote_171-1"></a>
+ <a href="#fnanchor_171-1">[171-1]</a>
+ <i>Adam Smith</i>, Wealth of Nat., I, ch. 8. Thus in the case of nations
+ of hunters. The wages of free laborers in Russia, at the beginning of this
+ century, were so high that mowers, in the vicinity of Moscow, received a
+ good half of the corn mowed by them, (<i>von Schlözer</i>, Aufangsgründe,
+ I, 65.) As a rule, the natural relation of the three branches of income is
+ here postponed by the intervention of slavery. (§ 76, 155.) But, for
+ instance, since the negroes have been emancipated, in the southern states
+ of the American Union, it has become necessary to promise them one-half of
+ the cotton crop as wages, and for the employer to run all the risk of a
+ bad harvest. (<i>R. Somers</i>, The Southern States since the War, 1871.)
+ On the wretched pay of domestic servants in the middle ages, see
+ <i>Grimm</i>, D. Rechtsalterth., 357.</p>
+
+<p class="p2 center"><a name="S172"></a>SECTION CLXXII.</p>
+
+<p class="center smaller">HISTORY OF THE WAGES OF COMMON LABOR.&mdash;IN
+FLOURISHING TIMES.</p>
+
+<p>When, where a nation's economy<a name="fnanchor_172-1" id=
+"fnanchor_172-1"></a><a href="#footnote_172-1" class=
+"fnanchor">[172-1]</a> is growing and flourishing, capital increases more
+rapidly than population, there is a search for employment by capital still
+greater than the search <span class='pagenum'>[Pg 70]</span> for employment
+by labor. The consequence is, of course, a decline in the rate of interest,
+and a rise in the rate of the wages of labor, although the latter may be
+compelled to surrender a part of its increase to rent, which also rises. If
+simultaneously with these phenomena, there have been great advances made in
+national productive skill, especially in the cultivation of land; if,
+therefore, labor and the capital consumed have become more prolific, the
+condition of the laboring class is improved in a two-fold manner; the
+condition of capitalists needs, to say the least, grow no worse, and the
+increase of rent paid to landowners may be avoided.<a name=
+"fnanchor_172-2" id= "fnanchor_172-2"></a><a href= "#footnote_172-2" class=
+"fnanchor">[172-2]</a></p>
+
+<p><span class='pagenum'>[Pg 71]</span>This favorable development is most
+striking in the colonies of rich and highly civilized parent countries,
+where the labor, capital and social customs of an old and ripe civilization
+are found together with the overflowing natural forces inherent in a virgin
+soil, engaged in the work of economic production. Here the growth of
+national wealth is most rapid; and the rate of wages is here wont to be
+highest.<a name="fnanchor_172-3" id="fnanchor_172-3"></a><a href=
+"#footnote_172-3" class="fnanchor">[172-3]</a> With the high rate <span
+class='pagenum'>[Pg 72]</span> of interest that obtains where capital is
+rapidly saved, and with the low price of land, it is not a matter of
+difficulty for good workmen to enter into the ranks of landowners and
+capitalists. In North America, and especially in the western part,<a
+name="fnanchor_172-4" id="fnanchor_172-4"></a><a href="#footnote_172-4"
+class="fnanchor">[172-4]</a> it is very frequently in the normal course of
+economic <span class='pagenum'>[Pg 73]</span> development for young people
+to begin to work on wages, then to work on their own account, and finally
+to become themselves employers of labor.</p>
+
+ <p class="footnote"> <a name="footnote_172-1" id="footnote_172-1"></a>
+ <a href="#fnanchor_172-1">[172-1]</a>
+ Compare <i>Hermann</i>, Staatswirths. Unters., 241 ff.; <i>J. S. Mill</i>,
+ Principles, ch. 3. As to how <i>Carey</i> confounds the rise and fall of
+ the productiveness of labor with the rise and fall of wages, see <i>J. S.
+ Mill's</i> views in <i>Lange</i>, 1866, 218 ff.</p>
+
+ <p class="footnote"> <a name="footnote_172-2" id="footnote_172-2"></a>
+ <a href="#fnanchor_172-2">[172-2]</a>
+ In England, wages from 1400 to 1420, estimated in produce, were much
+ higher than from 1500 to 1533. (Statist. Journal, 1861, 544 ff.) Later, a
+ quarter of wheat was earned by day labor as follows: under Elizabeth, in
+ about 48 days; during the seventeenth century, in 43 days; between 1700
+ and 1766, in 32 days; between 1815 and 1848, in from 19 to at most 28¾
+ days. (<i>Hildebrand</i>, Nat. Oek. der Gegenwart und Zukunft.) Since 1860,
+ it has been earned in about 14 days. About 1668, the wages paid to English
+ laborers and servants was one-third higher than twenty years before.
+ (<i>Sir J. Child</i>, Discourse on Trade, p. 43 of the French
+ translation.) <i>D. Defoe</i>, Giving Alms no Charity, 1704, draws a much
+ more favorable picture of the time next succeeding. <i>Adam Smith</i>,
+ Wealth of Nat., I, ch. 8, shows how money-wages, in the eighteenth
+ century, were higher and the price of corn lower than in the seventeenth
+ century. Between 1737 and 1797, wages in most parts of England, except in
+ the immediate neighborhood of the great cities, doubled. (<i>Eden</i>, I,
+ 385.) In Scotland, about the year 1817, the wages of married farm
+ servants, expressed in corn, were about 60 per cent. higher than in 1792.
+ (<i>Sinclair</i>, Grundgesetze des Ackerbaues, 105.)</p>
+
+ <p class="footnote"><i>Boisguillebert</i>, Traité des Grains, I, 2,
+ estimates the wages in France, for agricultural laborers, at least from 7
+ to 8 sous, of present money, and at twice that amount in harvest time. In
+ 1697, laborers in Paris received from 40 to 50 sous. (Détail de la France,
+ I, ch. 1, ch. 7.) <i>Vauban</i> estimates wages in large cities at 22½-45
+ sous; for country manual laborers, at 18 sous; for agricultural laborers,
+ 12-13-1/5 sous. (Project d'une Dime royale, 89 Daire.) On the other hand,
+ <i>Chaptal</i>, De l'Industrie, Fr. I, 245, 1819, speaks of an average
+ wage&mdash;25 sous. <i>Dureau de la Malle</i>, Economie polit. des
+ Romains, I, 151, allows agricultural laborers, in 80 departments of
+ France, only 20-25 sous. According to <i>Moreau de Joannés</i>, Journal
+ des Econ., Oct. 1850, the average wages of a French agricultural family
+ amounted per annum, in 1700, to 135 francs; in 1760, to 126; in 1788, to
+ 161; in 1813, to 400; in 1840, to 500 francs. While <i>A. Young</i>,
+ Travels in France, 1787-89, speaks of wages of 20 sous a day;
+ <i>Peuchet</i>, Statist. élémentaire, 1805, 361, assumes it to be 30 sous,
+ although the price of corn was not much higher. Compare <i>Birkbeck</i>,
+ Agricultural Tour of France, 13, who is of opinion even, that French
+ laborers are better situated than the English (?). From 1830 to 1848,
+ wages decreased about 30 per cent. (<i>L. Faucher</i>, Revue des deux
+ Mondes, Avril, 1848.) <i>Levasseur</i>, Histoire des Classes ouvrières en
+ France, II, 1858.</p>
+
+ <p class="footnote">General data for whole countries are obviously very
+ doubtful. In Germany, for instance, economically active places have
+ witnessed an undoubted elevation of the condition of the laboring classes.
+ Thus, in Hamburg and Lower Saxony, about the end of the eighteenth century
+ (<i>Büsch</i>, Geldumlauf, II, 56 ff.); while in Thuringia, in 1556, a
+ <i>sümmer</i> of rye was earned by 7 summer days' labor, and in 1830 ff.
+ by 8. (<i>Lotz</i>, Handbuch, I, 404.) In Hessen, also, there has been but
+ a very small increase in wages. <i>(Hildebrand,</i> Nat. Oek., I, 190.)
+ According to <i>von der Goltz</i>, Ländliche Arbeiterfrage, 1872, 84 seq.,
+ wages in the country during the last twenty or thirty years have increased
+ on an average, 50 per cent. at least; in Bavaria about 100 per cent.; in
+ the Rhine province, male wages, about 100; female wages, from about 75 to
+ 100 per cent. The masterly investigations of the wages of typesetters in
+ Jena and Halle by <i>Strasburger</i> in <i>Hildebrand's</i> Jahrb., 1872,
+ I ff., show that from 1717 to 1848, there was scarcely any change in them.
+ A million m's was paid for in 1717-40 with 26.93 Prussian <i>sheffels</i>
+ of rye; 1804-47 with from 24.80 to 28.80. Since then, a remarkable rise;
+ so that in 1871, up to November, 76.26 was reached. The prices of food,
+ dwellings, fuel, clothing, such as is in demand by such laborers, rose
+ between 1850 and 1860, 16.7 per cent., and the wages for 1,000 m's in the
+ same period of time rose about 14.3 and 43.7 per cent. In the industrious
+ manufacturing vicinity of Moscow, wages in 1815 were four times as high as
+ in 1670, while the means of subsistence rose relatively much less.
+ (<i>Storch</i>, I, 203.)</p>
+
+ <p class="footnote"> <a name="footnote_172-3" id="footnote_172-3"></a>
+ <a href="#fnanchor_172-3">[172-3]</a>
+ In the United States, the wages of carpenters and masons, about the end of
+ the last century, were $0.62 and $0.75; in 1835, of the former from $1.12
+ to $1.25, and for the latter from $1.37 to $1.50. In 1848, the general
+ wage was $0.75. The price of corn, in the meantime, did not rise, and the
+ price of manufactured articles was much smaller. (<i>Carey</i>, Rate of
+ Wages, 26 seq.; Past, Present and Future, 154.) In New York, as far back
+ as 1790, wages were much higher (<i>Ebeling</i>, Geschichte und
+ Erdbeschreibung von Nordamerika, II, 917); and between 40 and 50 years
+ ago, a journeyman mason might earn over 700 thalers per annum.
+ Agricultural laborers, in 1835, got $9 a month and their board, valued at
+ $65 for the whole year. In the vicinity of large cities, both were higher.
+ (<i>Carey</i>, 91.) The condition of the factory hands, in Lowell, is a
+ very good one. In 1839, more than 100 of them had over $1,000 each in the
+ savings banks, and pianos at their mess places. (<i>Boz</i>, Notes on
+ America, 1842.) Most of them could save $1.50 a week. <i>Colton</i>, in
+ his Public Economy (1849), says that a workman would consider himself in a
+ bad way if he could not save half of his wages. Compare <i>Chevalier</i>,
+ Lettres sur l'Amérique, II, 174, 122, 19; I, 221 ff.</p>
+
+ <p class="footnote">Apprentices in the United States, in almost every
+ instance, begin to be paid wages as soon as their work begins to prove
+ useful. The work of half-grown children, who had not yet left the parental
+ roof, was so well paid that it was estimated that a child earned for his
+ parents, on the whole, £100 more than he cost them. What an incentive to
+ marriage! (<i>Adam Smith</i>, Wealth of Nat., I, ch. 8.) In Canada,
+ agricultural laborers earn between £24 and £30 per annum and their board.
+ In and around Melbourne, agricultural laborers got from 15 to 20 shillings
+ a week and lodging; herdsmen, £35 to £40 a year; girls, from £20 to £45
+ (Statist. Journal, 1872, 387 ff.); female cooks, from £35 to £40; male
+ cooks, from £52 to £156. In hotels, girls, from £30 to £35; female cooks,
+ from £50 to £100; domestic servants, £39 to £52; carpenters, masons, etc.,
+ 10 shillings a day; the best tailors, from 60 to 75 shillings a week;
+ shoemakers, from 40 to 55 shillings; bakers, from 40 to 60 shillings a
+ week. (Statist. Journal, 1871, 396 seq.) In San Francisco, a short time
+ since, servant girls got $25 a month; Chinese, $1 a day; common laborers,
+ $2; skilled artisans, from $3 to $5. (<i>Whymper</i>, Alaska, 299, 326.)
+ The wages of a European tradesman, in Rio Janeiro, was from I to 2 Spanish
+ piasters a day. (<i>Martius</i>, Reise, I, 131.) In the English West
+ Indies, a new-born negro was formerly worth £5. (<i>B. Edwards</i>,
+ History of the West Indies, II, 128.) The high wages paid in young
+ colonies are frequently made temporarily still higher, by a large influx
+ of capital in the shape of money, brought by emigrants, and by government
+ outlays. Thus, in Van Diemen's land, for instance, in 1824, carpenters,
+ masons, etc. got 12 shillings a day; in 1830, 10; in 1838, only from 6 to
+ 7, although between 1830 and 1838, the export trade of the island trebled
+ while the population scarcely doubled. (<i>Merivale</i>, On Colonies, II,
+ 225.)</p>
+
+ <p class="footnote"> <a name="footnote_172-4" id="footnote_172-4"></a>
+ <a href="#fnanchor_172-4">[172-4]</a>
+ As to how many workmen in the eastern part of North America buy land in
+ the west, and so threaten their employers with immediate emigration, see
+ <i>Brentano</i>, Arbeitergilden, II, 131. However, in Massachusetts,
+ women's wages are in many instances so low that, considering the dearness
+ of the means of subsistence, it is almost impossible to understand how
+ they exist. (Statist. Journal, 1872, 236 ff.)</p>
+
+<p class="p2 center"><a name="S173"></a>SECTION CLXXIII.</p>
+
+<p class="center smaller">HISTORY OF THE WAGES OF COMMON LABOR.&mdash;IN
+FLOURISHING NATIONS.</p>
+
+<p>A permanently<a name="fnanchor_173-1" id="fnanchor_173-1"></a><a
+href="#footnote_173-1" class="fnanchor">[173-1]</a> high rate of wages<a
+name="fnanchor_173-2" id="fnanchor_173-2"></a><a href="#footnote_173-2"
+class="fnanchor">[173-2]</a> is, both as cause and effect, very intimately
+connected with a flourishing condition of national life. It proves on the
+one hand, great productiveness of the public economy of the people
+generally: prudence, self-respect and self-control, even of the lowest
+classes, virtues, which, however, are found, on the whole, only where
+political liberty exists, and where the lowest classes are rightly valued
+by the higher.<a name="fnanchor_173-3" id="fnanchor_173-3"></a><a
+href="#footnote_173-3" class="fnanchor">[173-3]</a> On the other hand, it
+produces a condition <span class='pagenum'>[Pg 74]</span> of the great
+majority of that portion of the population who have to support themselves
+on the wages they receive, worthy of human beings, a condition in which
+they can educate their children, enjoy the present and provide for the
+future. Equality before the law and participation in the affairs of
+government are empty phrases, and even tend to inflame the passions, where
+the rate of wages is not high. When the lower classes are dissatisfied, in
+highly civilized countries, with the sensitiveness and mobility of the
+whole national life, there can be no certainty of the freedom of the middle
+classes or of the rule of the upper. Here, in other respects, also, the
+philanthropy of employers harmonizes remarkably well with their reasonable
+self-interest. According to § 40, only the well-paid workman can accomplish
+anything really good, just as, conversely, only the good workman is on the
+whole, and in the long run, well paid. This suggests the physiological law,
+that where muscular activity is great, nutrition must be great, likewise;
+and the rapid waste and repair of tissues strengthens the muscles and gives
+tone to the whole physical life. With a correct insight into the relations
+of things, antiquity described its greatest worker, Herakles, as a great
+eater also. A well-paid workman, who costs and accomplishes as much in a
+day as two bad ones, is cheaper than they. He works much more cheerfully
+and faithfully, is, hence, more easily superintended, is less frequently
+sick, and later decrepid.<a name="fnanchor_173-4" id="fnanchor_173-4"></a>
+<a href="#footnote_173-4" class="fnanchor">[173-4]</a> His childhood costs
+less, and his burial is not so expensive. In cases of need, he can more
+easily bear the <span class='pagenum'>[Pg 75]</span> weight of taxation or
+a temporary lowering of wages.<a name="fnanchor_173-5" id="fnanchor_173-5">
+</a><a href="#footnote_173-5" class="fnanchor">[173-5]</a> We might say of
+the granting of holidays and of evening leisure something similar to what
+we have said of the rate of wages. They are indispensable requisites to the
+development of a desirable individuality in the working classes; and when
+used for that purpose are certainly no detriment to the product of labor or
+to employers.<a name="fnanchor_173-6" id="fnanchor_173-6"></a><a href=
+"#footnote_173-6" class="fnanchor">[173-6]</a> <a name="fnanchor_173-7"
+id="fnanchor_173-7"></a><a href="#footnote_173-7" class="fnanchor">[173-7]
+</a></p>
+
+<p><span class='pagenum'>[Pg 76]</span>In consideration of all the
+blessings attending a high rate of wages, we may well be induced to put up
+with a certain and frequently inconvenient external defiance of the lower
+classes which is wont to accompany it.<a name= "fnanchor_173-8"
+id= "fnanchor_173-8"></a><a href= "#footnote_173-8"
+class= "fnanchor">[173-8]</a> It teaches the upper classes many a moral
+lesson, and is surely a lesser sin in the lower, than the cowardly,
+malicious crimes of the oppressed. When wages are so low that they have to
+be supplemented by begging or public charity, the effect on morality is the
+same as when government officials, who cannot live on their salaries,
+resort to bribery or embezzlement.<a name="fnanchor_173-9" id=
+"fnanchor_173-9"></a><a href="#footnote_173-9" class="fnanchor">[173-9]</a>
+<a name="fnanchor_173-10" id="fnanchor_173-10"></a><a href=
+"#footnote_173-10" class="fnanchor">[173-10]</a></p>
+
+ <p class="footnote"> <a name="footnote_173-1" id="footnote_173-1"></a>
+ <a href="#fnanchor_173-1">[173-1]</a>
+ A merely momentary rise in wages might be the result of a great calamity,
+ destructive of human life, and might seduce workmen not intellectually
+ prepared for it into idleness. Compare <i>von Taube</i>, Beschreib. von
+ Slavonien etc., II, § 4.</p>
+
+ <p class="footnote"> <a name="footnote_173-2" id="footnote_173-2"></a>
+ <a href="#fnanchor_173-2">[173-2]</a>
+ On the necessity of <i>free</i> wages, that is of an excess over and above
+ the costs of support and of maintaining one's position, see
+ <i>Roesler</i>, Grandsätze, 394.</p>
+
+ <p class="footnote"> <a name="footnote_173-3" id="footnote_173-3"></a>
+ <a href="#fnanchor_173-3">[173-3]</a>
+ <i>Dans aucune histoire on ne rencontre un seul trait, qui prouve que
+ l'aisance du peuple par le travail a nui à son obéissance,
+ (Forbonnais.)</i> This is true only of well governed countries. When, in
+ England, about the middle of the eighteenth century, a great improvement
+ took place in the condition of the laboring classes, <i>Postlethwayt</i>
+ (Great Britain's commercial Interests, 1759) was one of the first to
+ recognize its general beneficial character; also <i>Th. Mortimer</i>.
+ (Elements of Commerce, Politics and Finance, 1774, 82 ff.) <i>Benjamin
+ Franklin</i>, before the American revolution, was of opinion that high
+ wages made people lazy. (On the Price of Corn, 1776. On the laboring Poor,
+ 1768.) He afterwards, however, acknowledged its generally good effect, and
+ that even the products of labor might be cheapened thereby. (On the
+ Augmentation of Wages, which will be occasioned in Europe by the American
+ Revolution. Works II, 435 ff.) See further, <i>Paoletti</i>, Veri Mezzi di
+ render felici le Società, ch. 15; <i>Ricardo</i>, Principles, ch. 5;
+ <i>Th. Brassey</i>, on Work and Wages, 1872. <i>Umpfenbach</i>, Nat. Oek,
+ 181, calls the costliness of labor to the purchaser of labor, "givers'
+ wages," their purchasing power to the laborer himself, "receivers' wages,"
+ and is of opinion, that as civilization advances, the former declines and
+ the latter rises.</p>
+
+ <p class="footnote"> <a name="footnote_173-4" id="footnote_173-4"></a>
+ <a href="#fnanchor_173-4">[173-4]</a>
+ When in the department of the Tarn flesh food was introduced among
+ journeymen smiths instead of mere vegetable diet, the sanitary improvement
+ that followed was so great that the number of days lost by sickness in a
+ year decreased from 15 to 3. (<i>Moleschott</i>.)</p>
+
+ <p class="footnote"> <a name="footnote_173-5" id="footnote_173-5"></a>
+ <a href="#fnanchor_173-5">[173-5]</a>
+ In high stages of civilization, it is always more profitable, the result
+ being the same, to keep a few well fed cattle than many poorly fed.
+ (<i>Roscher</i>, Nationalök. d. Ackerbaues, § 179.) <i>Infra</i>, § 231.
+ When the drainage of Oxford street in London was made while wages were
+ rising, it happened that the cubic foot of masonry work at 10 shillings
+ per day was cheaper than it was formerly at 6 shillings per day.
+ (<i>Brassey</i>, 68 ff.) <i>Senior</i> calls it an absurdity to consider
+ the high wages paid in England as an obstacle in the way of its successful
+ competition with other countries. Rather would he consider it as the
+ necessary result of the excellence of English labor. Thus, in his Lectures
+ on the mercantile Theory of Wealth, p. 76, he says that if the English
+ employ a part of their labor injudiciously, they must pay it not in
+ proportion to what it really accomplishes, but to what it might do if well
+ employed. If a man calls in a doctor to cut his hair, he must pay him as a
+ doctor. If he puts a man to throwing silk who might earn 3 ounces of
+ silver a week spinning cotton, he must pay him weekly 3 ounces of silver,
+ although he may deliver no more silk within that time than an Italian who
+ gets only 1½ ounces.</p>
+
+ <p class="footnote"> <a name="footnote_173-6" id="footnote_173-6"></a>
+ <a href="#fnanchor_173-6">[173-6]</a>
+ Norfolk country workmen never worked more than 10 hours a day except in
+ harvest and seed time. But a plowman there accomplished as much in 5 days
+ as another in 8. (<i>Marshall</i>, Rural Economy of N., 138.) In
+ southwestern Germany, the country working day is from 2 to 4 hours shorter
+ than in the northeast, and yet just as much is accomplished in the former
+ quarter. (<i>von der Goltz</i>, Ländl. Arbeiterfrage, 88, 131.) Thus the
+ coal diggers of South Wales work 12 hours a day, those of Northumberland,
+ 7; and yet the same achievement is 25 per cent. dearer in case of the
+ former. In the construction of the Paris-Rouen Railroad, the English
+ achieved more than the French, although the former worked from 6 A. M. to
+ 5:30 P. M., and the latter from 5 A. M. to 7 P. M. (<i>Brassey</i>, 144
+ ff.) Examples from English manufactories in <i>Marx</i>, Kapital, I, 401
+ seq. In an English factory the hours worked were 12, and afterwards, 11.
+ This caused the number of attendants of the evening school to grow from 27
+ to 98. (<i>Horner.</i>) <i>Dollfuss</i>, in Mühlhausen, reduced the number
+ of hours worked from 12 to 11, and let the wages remain the same as
+ before. The result was besides a great saving made in fuel and light, a
+ surplus product of at least 1-2/3 per cent. Something similar observed by
+ <i>M. Chevalier</i>, Cours, I, 151.</p>
+
+ <p class="footnote">Hence <i>J. Möser</i>, Patr. Ph., III, 40, desired, on
+ this account, that work in the evening should be prohibited by law. In
+ England, not only the moral necessity, but also the economic general
+ utility of leisure time of workmen has been defended, among others by
+ <i>Postlethwayt</i>, Dictionary of Trade and Commerce, I, prelim.
+ Discourse, 1751. A beautiful law, V Moses 24, 15. Only, care must be taken
+ not to go to the other extreme, which is still more detrimental to
+ personality. The North American ideal of 8 hours a day for work, 8 for
+ eating, sleeping, etc., and 8 for leisure, would be injurious except to
+ workmen intellectually very active. But the provision to be met with in
+ many states of the Union and in the arsenal employ of the government, that
+ in case of doubt, the work day is to be tacitly assumed as of 8 hours,
+ has, it is said, correspondingly lowered wages. See <i>supra</i>, §
+ 168.</p>
+
+ <p class="footnote"> <a name="footnote_173-7" id="footnote_173-7"></a>
+ <a href="#fnanchor_173-7">[173-7]</a>
+ In India, where the institution of caste is found, nearly half the year is
+ made up of feast days, while in rationalistic China there is no Sunday and
+ very few general holidays. (<i>Klemm</i>, A. Kulturgeschicht. VI, 425.
+ <i>Wray</i>, The practical Sugar Planter, 1849.) The Judaic-Christian
+ sanctification of the seventh day is a happy medium between these two
+ extremes. Recuperation and collectedness get their due without its costing
+ too much to action. <i>Ora et labora!</i> Compare <i>Sismondi</i>, N. P.
+ II, ch. 5. Which is best, traveling on foot, to drag along all the time,
+ or to walk decently and rest properly between times? The rest of Sunday,
+ even leaving the work of recuperation and edification out of account, is
+ necessary in the interests of the family and of cleanliness. The French
+ <i>decadis</i> accomplished materially even too little: <i>ils ont à faire
+ à deux ennemis, qui ne cèderont pas, la barbe et la chemise blanche</i>.
+ (<i>B. Constant.</i>) Hence, an English prize essay on the material
+ advantages of Sunday found 1,045 competitors among English working men.
+ (Tübinger Zeitschr., 1851, 363.)</p>
+
+ <p class="footnote"> <a name="footnote_173-8" id="footnote_173-8"></a>
+ <a href="#fnanchor_173-8">[173-8]</a>
+ Thus <i>Parkinson</i>, A Tour in America, complains that with four
+ servants in the house, he was obliged to polish his own shoes, and with
+ his wife and children to milk the cows, while his people were still
+ asleep. Strange servants bringing a message, come in with their hats on.
+ All domestics are called mister or misses. Servant maids are called
+ "helps," and their masters, "employers." If a person at a hotel asks for a
+ laundress, he is answered: "Yes, man, I will get a lady to wash your
+ clothes." Similarly in <i>Fowler</i>, Lights and Shadows,... three Years'
+ Experience in Australia. But, at the same time, it is remarkable how
+ seldom a native born white American accepts a fee. On the other hand,
+ Russia is the classic land of fees. There is a popular story in that
+ country to the effect that when God divided the earth among the different
+ nations, they were all satisfied except the Russians, who begged a little
+ drink-money or fee in addition, (<i>von Haxthausen</i>, Studien, I, 70.)
+ Similarly in Egypt. (<i>Ebers</i>, Durch Gosen zum Sinai, 1873, 31 seq.)
+ The system of feeing servants holds a middle place between the modern
+ system of paying for everything lawfully and the medieval system in which
+ people either rob, donate or beg.</p>
+
+ <p class="footnote"> <a name="footnote_173-9" id="footnote_173-9"></a>
+ <a href="#fnanchor_173-9">[173-9]</a>
+ Compare <i>Garve</i> in <i>Macfarlan</i>, 90. The wages of English wool
+ workers in 1831 amounted to:</p>
+
+<div> <table class="fn" border="0" cellpadding="5" summary="English
+ wages and per capita tax">
+
+<tr><td class="centerb"><i>In</i></td> <td></td> <td class="center"><i>Tax
+per capita of the</i><br /><i>population for</i><br /><i>support of the
+poor.</i></td></tr>
+
+<tr><td class="left">Leeds,</td> <td class="right">22&mdash;22½s.</td> <td
+class="center">5s. 7d.</td></tr>
+
+<tr><td class="left">Gloucester,</td> <td class="right">13&mdash;15¼s.</td>
+<td class="center">8s. 8d.</td></tr>
+
+<tr><td class="left">Somerset,</td> <td class="right">16¾&mdash;19¾s.</td>
+<td class="center">8s. 9d.</td></tr>
+
+<tr><td class="left">Wilts,</td> <td
+class="right">13-7/12&mdash;15-5/12s.</td> <td class="center">16s.
+6d.</td></tr>
+
+</table></div>
+
+ <p class="footnote"><i>Ure</i>, Philosophy of Manufactures, 476. After an
+ enthusiastic eulogy of high wages, <i>McCulloch</i> remarks especially
+ that the English poor rates cost more than if the laborers were obliged to
+ provide for themselves by getting higher wages. (Principles, III, 7.) Sad
+ results of the system which came into vogue in the South of England in
+ 1795, to supplement wages according to the price of corn and the number of
+ children. Previously the laboring classes married only after the age of 25
+ and even at 35, and not until they had saved from £40 to £50. After the
+ above mentioned system was adopted, even minors married. (Edinburg Review,
+ LIII, 4, 7.)</p>
+
+ <p class="footnote"> <a name="footnote_173-10" id="footnote_173-10"></a>
+ <a href="#fnanchor_173-10">[173-10]</a>
+ <i>Von Thünen</i>, Isolirte Staat., II, 1, 154, gives the following
+ formula as the expression of ideal wages: &#8730;<span
+ class="o">ap</span>, in which a = the necessary requirement for
+ maintenance of the workmen, and p = the aggregate product of his labor.
+ <i>von Thünen</i> attached so much importance to this formula that he had
+ it engraved on his tomb-stone. But even if it were possible to reduce
+ capital-generating labor and wage-labor to a common denominator, it would
+ not be possible nor equitable to maintain the same dividing measure when
+ capital and labor contributed in very different amounts to the production
+ of the common product. An artist, for instance, who could make costly
+ vessels out of very cheap clay and with cheap fuel would get too little by
+ <i>von Thünen's</i> law; a mechanic who used a very efficient and costly
+ machine, too much. The fundamental defect in his theory, <i>von Thünen</i>
+ himself seems to have obscurely felt. Compare the letter in his
+ Lebensbeschreibung, 1868, 239 and <i>Roscher</i>, Geschichte der Nat. Oek.,
+ in Deutschland, 895 ff.</p>
+
+<p class="p2 center"><a name="S174"></a>SECTION CLXXIV.<span
+class='pagenum'>[Pg 77]</span></p>
+
+<p class="center smaller">HISTORY OF THE WAGES OF COMMON LABOR.&mdash;IN
+DECLINING COUNTRIES AND TIMES.</p>
+
+<p>When, circumstances being otherwise unaltered, the aggregate income of a
+nation decreases, the wages of labor are wont to be lower in proportion as
+the points above mentioned, and <span class='pagenum'>[Pg 78]</span> which
+are unfavorable to the laborer in his competition, appear.<a
+name="fnanchor_174-1" id="fnanchor_174-1"></a><a href="#footnote_174-1"
+class="fnanchor">[174-1]</a> The worse distribution, also, of the national
+resources, when, instead of a numerous middle class, a few over-rich people
+monopolize all that is to be possessed, diminishes the wages of common
+labor and thus again produces a worse distribution than before.<a
+name="fnanchor_174-2" id="fnanchor_174-2"></a><a href="#footnote_174-2"
+class="fnanchor">[174-2]</a> In a similar way, wages must decline when the
+mode of life of the laboring class, or the quality of their work, has
+deteriorated. Some of these causes may exist transitorily <span
+class='pagenum'>[Pg 79]</span> even among otherwise flourishing nations;
+as, for instance, in war times,<a name= "fnanchor_174-3" id=
+"fnanchor_174-3"></a><a href="#footnote_174-3" class="fnanchor">[174-3]</a>
+or when population for a while grows more rapidly than national wealth. But
+among nations universally declining, they are all wont to meet, and one
+strengthens the other.<a name="fnanchor_174-4" id="fnanchor_174-4"></a><a
+href="#footnote_174-4" class="fnanchor">[174-4]</a> One of the saddest
+symptoms of such a condition is the low value here put upon the life and
+strength of workmen. The cheapness of labor has indeed a charm for
+enterprising spirits, <span class='pagenum'>[Pg 80]</span> which induces
+them to employ human labor even where machinery, beasts, etc., would
+economically be better adapted to the performance of the work.<a
+name="fnanchor_174-5" id="fnanchor_174-5"></a><a href="#footnote_174-5"
+class="fnanchor">[174-5]</a> Day-laborers are, on this account, more
+profitable to persons of enterprise (<i>Unternehmer</i>=<i>undertaker</i>)
+because they can more easily rid themselves of them. But such egotistic
+calculation should have no place even in the case of actual slaves.<a
+name="fnanchor_174-6" id="fnanchor_174-6"></a><a href="#footnote_174-6"
+class="fnanchor">[174-6]</a></p>
+
+<p>Besides, it not unfrequently happens, that the laboring class seek to
+oppose the decline of wages by increasing their industry, shortening their
+holidays and leisure, and by drawing their wives and children into their
+work. This may, under certain circumstances, result in an increase of the
+national income, and thus constitute a transition to the restoration of
+high wages, especially if beforehand there was reason to complain of the
+idleness of the working class. But if the other circumstances of
+competition are unfavorable to the working class, if especially they used
+their personally increased income to add to the population, it would not be
+long before they fell back to their previous state. In such case, the
+consequence is, that the same quantity of labor has become cheaper; that
+all permanent profit falls to the capitalists and landowners, and <span
+class='pagenum'>[Pg 81]</span> all that remains to the laboring class is
+only greater toil, a sadder home-life, and sadder children. The danger of
+such an issue is all the greater, because few things so much contribute to
+reckless marriages and the thoughtless procreation of children, as the
+industrial coöperation of wife and child.<a name="fnanchor_174-7" id=
+"fnanchor_174-7"></a><a href="#footnote_174-7" class="fnanchor">[174-7]</a>
+<a name="fnanchor_174-8" id= "fnanchor_174-8"></a><a href=
+"#footnote_174-8" class= "fnanchor">[174-8]</a></p>
+
+ <p class="footnote"> <a name="footnote_174-1" id="footnote_174-1"></a>
+ <a href="#fnanchor_174-1">[174-1]</a>
+ Hence <i>Adam Smith</i> says that it is not the richest countries in which
+ wages are highest, but those which are becoming rich most rapidly.</p>
+
+ <p class="footnote"> <a name="footnote_174-2" id="footnote_174-2"></a>
+ <a href="#fnanchor_174-2">[174-2]</a>
+ The classic lands of low wages and pauperism are especially the East
+ Indies and China. A minister of Kienlong was punished after he had
+ extorted about 20,000,000 thalers. (<i>Barrow</i>, II, 149.) In the
+ confiscation of the well known <i>Keschen</i>, the authorities, according
+ to their own accounts, found 682 pounds of gold and more than 6,000,000
+ pounds in silver. Considering the colossal<a name= "fnanchor_TN12" id=
+ "fnanchor_TN12"></a><a href= "#footnote_TN12" class= "fnanchor">[TN
+ 12]</a> banquets of the rich, embracing several hundred courses, of which
+ <i>Meyen</i>, Reise um die Erde, II, 390, describes an example, the
+ wretched food of the poor is doubly striking. Count <i>Görtz</i> relates
+ that in Canton, rats and serpents are regularly exposed for sale. (Reise,
+ 445.) The lowness of wages appears from the fact&mdash;one of
+ many&mdash;that servants frequently get nothing but their board.
+ (<i>Haussmann</i>, Voyage en Chine, etc.) In the cities, tradesmen with
+ their tools run hither and thither about the streets begging for
+ employment in the most imploring manner. Thousands live all their lives on
+ rafts. Numberless instances of infanticide from want of food, (§ 251.) The
+ influence of these circumstances on the morality of the people is best
+ illustrated by the fact that <i>Keschen</i>, when he was ambassador to
+ Thibet, preferred to confide his newly collected treasures to the escort
+ of the French missionaries he persecuted rather than to the mandarins
+ named by himself, so much more highly did he estimate European than
+ Chinese honesty. (Edinburg Rev., 1851, 425 ff.) In the Chinese
+ picture-writing, the word happiness was designated by a mouth well corked
+ with rice. Chinese statisticians speak of mouths (<i>Maul</i>) where ours
+ treat of the number of heads or souls. <i>Ritter</i>, Erdkunde, II, 1060.
+ More favorable accounts in <i>Plath</i>, Münch. Akad., 1873, 784, 788
+ seq.</p>
+
+ <p class="footnote">In the East Indies, a great many of the rejected
+ castes live on carrion, dead fish, noxious insects, and even the middle
+ class find wheat flour too dear, and therefore mix it with peas, etc.
+ (<i>Ritter</i>, VI, 1143.) It is said that Bengal, in the famine of 1770,
+ lost more than one-third of its inhabitants. (<i>Mill</i>, History of
+ British India, III, 432.) Eloquent description of misery in
+ <i>Rickard</i>, India, or Facts submitted to illustrate the Character and
+ Condition of the native Inhabitants, II, London, 1832. An immense number
+ of badly paid servants of whom it may however be said that each one
+ accomplishes very little. The Pindaries may pass for an extreme of Indian
+ pauperism, corresponding to the pirate-calamity during the later Roman
+ Republic. (Quarterly Review, XVIII, 466 ff.; <i>Ritter</i>, VI, 394
+ ff.)</p>
+
+ <p class="footnote"> <a name="footnote_174-3" id="footnote_174-3"></a>
+ <a href="#fnanchor_174-3">[174-3]</a>
+ Thus, in England, during the last great war, wages rose less than the
+ price of corn, and sank less after it. About 1810, wages were nearly 100
+ per cent. higher than in 1767; but, on the other hand, the price of wheat,
+ 115; of meat, 146; of butter, 130, and of cheese, 153 per cent. (Edinburg
+ Rev., XL., 28.) If it has some times been observed that crime, communistic
+ machinations and revolutionary movements grow less frequent in times of
+ war, the fact is not to be ascribed necessarily to a better condition of
+ the laboring class. It might possibly be the consequence of the strongest
+ and wildest elements of the laboring class finding some other career.</p>
+
+ <p class="footnote"> <a name="footnote_174-4" id="footnote_174-4"></a>
+ <a href="#fnanchor_174-4">[174-4]</a>
+ <i>Adam Smith</i>, loc. cit., on this point describes China as a
+ stationary country (according to <i>R. Fortune</i>, Wanderings in China,
+ 1847, 9, a decided decline has been noticeable there for a long time), and
+ Bengal as a declining one. On the condition of wages among the Romans,
+ <i>Juvenal</i>, III, 21 ff., is one of the principal sources. Hence the
+ desire to emigrate because honest labor had no longer any foothold (23
+ ff.). Poor dwellings of the laboring class, dark, exposed to danger from
+ fire (166, 190 ff., 225), and yet comparatively dear (223 seq.). Numerous
+ crowds of robbers and beggars (302 ff.; IV, 116 ff.; V, 8; XIV, 134). On
+ beggary, see <i>Seneca</i>, Controv., V, 33. De Element., II, 6. De Vita
+ beata, 25 ff. <i>Martial</i>, V, 81, XIV, 1, complains of the absence of
+ outlook among the poorer classes. <i>Horace</i>, too, is rich in passages
+ which might be appropriately cited in this connection. Characteristic
+ question of the nabobs, in <i>Petron.</i>, 48, 5: What on earth is that
+ thing called a pauper?</p>
+
+ <p class="footnote"> <a name="footnote_174-5" id="footnote_174-5"></a>
+ <a href="#fnanchor_174-5">[174-5]</a>
+ Thus, in China, the East Indies, etc., people travel in palanquins borne
+ by men; in a multitude of cases, Chinese commodities are carried in
+ wheelbarrows; and a great many roads are constructed, in reference not to
+ wagons, properly so-called, but to this species of vehicle. How heartless
+ the Chinese, who, before they save a drowning man, first higgle about the
+ reward, and take pleasure in pestilence, famine, etc., because those who
+ survive profit by them. See <i>Finlaison</i>, Journey of the Mission to
+ Siam, 1826, 62 ff.</p>
+
+ <p class="footnote"> <a name="footnote_174-6" id="footnote_174-6"></a>
+ <a href="#fnanchor_174-6">[174-6]</a>
+ Hence <i>Menander</i> (342-290 before Christ) says it is better to be the
+ slave of a good master than to live wretched in freedom. (<i>Stobœus</i>,
+ Flor., 62, § 7. <i>Meinecke</i>, Fr. com. Gr., IV, 274.) <i>Libanios</i>,
+ too, (Tom., 483, Reiske), in his "Blame of Poverty," represents slavery as
+ better cared for, and freer from worry. Horrible contracts made even in
+ Cæsar's time, from want, by freemen, to become gladiator-slaves.
+ <i>Cicero</i>, pro Roscio, Am. 6; <i>Horat.</i>, Serm., II, 7, 58 ff.;
+ <i>Petron.</i>, 117; <i>Seneca</i>, Epist., 37. And so by Justinian, cases
+ of declined freedom are supposed. (L. 15, <i>Justin.</i>, Cod., VII, 2.)
+ "<i>Dans une armée on estime bien moins un pionnier, qu'un cheval de
+ caisson, parce que le cheval est fort cher, et qu'on a le pionier pour
+ rien. La suppression de l'esclavage a fait passer ce calcul de la guerre
+ dans la vie commune.</i>" (<i>Linguet.</i>)</p>
+
+ <p class="footnote"> <a name="footnote_174-7" id="footnote_174-7"></a>
+ <a href="#fnanchor_174-7">[174-7]</a>
+ <i>Sismondi</i> is guilty, however, of a philanthropic exaggeration when
+ he says that the labor of children is always fruitless to the laboring
+ classes. (R. P. I., 235.)</p>
+
+ <p class="footnote"> <a name="footnote_174-8" id="footnote_174-8"></a>
+ <a href="#fnanchor_174-8">[174-8]</a>
+ The bringing into juxtaposition of the rates of wages in different
+ countries is doubtless one of the most important objects of comparative
+ statistics. Only it is necessary not to confine it to the money amount of
+ wages, but to make it embrace the prices of the principal means of
+ subsistence. Thus, in France, before the outbreak of the French
+ Revolution, a French workman earned a cwt. of bread on an average of 10.5
+ days; one of meat in 36.8; an English workman, in 10.4 and 25.3 days.
+ (<i>A. Young.</i>) In the interior of Russia, a female weaver earns, in a
+ day, almost one Prussian <i>scheffel</i> of rye, in Bielefeld, only about
+ one-tenth of a <i>scheffel</i>; a table-cloth weaver, in the former place,
+ 18 silver groschens, while the <i>scheffel</i> costs from 12 to 15 silver
+ groschens. (<i>von Haxthausen</i>, Studien, I, 119, 170.) According to
+ <i>Humboldt</i>, the money-wages paid in Mexico were twice as high, and
+ the price of corn two-thirds as dear, as in France. (N. Espagne, IV, 9.)
+ According to <i>Rau</i>, Lehrbuch, I, § 180, the procuration of the
+ following means of subsistence required in day labor in:</p>
+
+ <p class="footnote">Column code:<br /> A = Manchester. B &amp; C =
+ Hanover. D = Upper Canada. E = Brandenburg. F = Gratz.</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Labor to procure subsistence">
+
+<tr><td></td> <td class="centerb"><i>A</i>.</td> <td class="centerb">
+<i>B</i>.</td> <td class="centerb"><i>C</i>.</td> <td class="centerb">
+<i>D</i>.</td> <td class="centerb"><i>E</i>.</td> <td class="centerb">
+<i>F</i>.</td></tr>
+
+<tr><td class="center">Cwt.</td> <td class="center"><i>1810-20</i></td>
+<td class="center"> <i>1700</i><a name= "fnanchor_TN13" id=
+"fnanchor_TN13"></a><a href= "#footnote_TN13" class= "fnanchor">[TN 13]</a>
+</td>
+<td class="center"><i>1827</i></td> <td class="center">
+<i>1830</i></td> <td class="center"><i>1820-33</i></td>
+<td class="center"> <i>1826-45</i></td></tr>
+
+<tr><td class="left">beef,</td> <td class="right">26<span
+class="hidenum">.00</span></td>
+<td class="right">33<span class="hidenum">.0</span></td>
+<td class="right">35<span class="hidenum">.0</span></td>
+<td class="right">6.6</td>
+<td class="right">34<span class="hidenum">.0</span></td>
+<td class="right">36<span class="hidenum">.00</span></td></tr>
+
+<tr><td class="left">potatoes,</td> <td class="right">1.85</td>
+<td class="center">&mdash;</td> <td class="center">&mdash;</td>
+<td class="center">&mdash;</td>
+<td class="right">1<span class="hidenum">.0</span></td>
+<td class="right"><span class="hidenum">0</span>2.68</td></tr>
+
+<tr><td class="left">wheat,</td> <td class="right">5.5<span
+class="hidenum">0</span></td>
+<td class="center">&mdash;</td> <td class="center">&mdash;</td>
+<td class="right">2<span class="hidenum">.0</span></td>
+<td class="right">7.6</td>
+<td class="right">11<span class="hidenum">.00</span></td></tr>
+
+<tr><td class="left">rye,</td> <td class="center">&mdash;</td>
+<td class="right">6.5</td>
+<td class="right">8.7</td>
+<td class="right">1.5</td>
+<td class="right">5.4</td>
+<td class="right">8.6<span class="hidenum">0</span></td></tr>
+
+<tr><td class="left">butter,</td> <td class="right">42.3<span
+class="hidenum">0</span></td>
+<td class="right">87<span class="hidenum">.0</span></td>
+<td class="right">64<span class="hidenum">.0</span></td>
+<td class="right">22<span class="hidenum">.0</span></td>
+<td class="right">83<span class="hidenum">.0</span></td>
+<td class="right">84<span class="hidenum">.00</span></td></tr>
+
+<tr><td class="left">sugar,</td> <td class="right">96<span
+class="hidenum">.00</span></td>
+<td class="right">181<span class="hidenum">.0</span></td>
+<td class="right">128<span class="hidenum">.0</span></td>
+<td class="center">&mdash;</td>
+<td class="center">&mdash;</td>
+<td class="center">&mdash;</td></tr>
+
+</table></div>
+
+ <p class="footnote">Estimated in silver, the East Indian laborer earns
+ from £1 to £2 a year; the English, £9 to £15; the North American, £12 to
+ £20. (<i>Senior.</i>) <i>Hildebrand</i>, Nat-Oek., I, 195 ff., assures us
+ that the average rate of wages in Germany, in 1848, amounted to 400
+ thalers a year; in England, to 300 thalers; and that the prices of the
+ means of subsistence in the latter country were 1½ times higher than in
+ the former. <i>Engel</i>, Ueber die arbeitenden Klassen in England, 1845,
+ shows only the dark side of a real picture, and is silent on the other,
+ and is well corrected by <i>Hildebrand</i>, I, 170 ff. Excellent
+ statistics in <i>Sir F. M. Eden</i>, State of the Poor, I, 491-589. On the
+ more recent times, compare the Edinburgh Review, April, 1851, April, 1862;
+ Quarterly Rev., Oct., 1859, July, 1860. <i>Ludlow</i> and <i>Jones</i>,
+ loc. cit. On the situation in France, see <i>Blanqui's</i> report in the
+ Mémoires de l'Académie des Sciences morales et politiques, II, 7.
+ <i>Leplay</i>, Les Ouvriers des deux Mondes, II, 1858. Very important are
+ the "Reports from Her Majesty's diplomatic and consular Agents abroad
+ respecting the Condition of the industrial Classes, and the Purchase-power
+ of money in foreign Countries." (1871.)</p>
+
+<p class="p2 center"><a name="S175"></a>SECTION CLXXV.<span
+class='pagenum'>[Pg 82]</span></p>
+
+<p class="center smaller">WAGE POLICY.&mdash;SET PRICE OF LABOR.</p>
+
+<p>Among the artificial means employed to alter the existing rate of wages,
+we may mention first, a rate of wages fixed by governmental authority.
+These have, in many places, constituted an intermediate step between
+serfdom and the free wage-system. In most cases, this measure was intended
+in the interest of the upper classes to prevent the lower obtaining the
+full advantage of their freedom under the favoring circumstances of
+competition.<a name="fnanchor_175-1" id="fnanchor_175-1"></a><a
+href="#footnote_175-1" class="fnanchor">[175-1]</a> In later times, another
+cause has <span class='pagenum'>[Pg 83]</span> frequently been added to
+this, viz.: by diminishing the cost of production to increase foreign
+sales. (See § 106.) In the higher stages of civilization, nations will
+scarcely look with favor on the diminution of the rightful, for the most
+part, individually small gains of the most numerous, the poorest and most
+care-worn class of the community.<a name="fnanchor_175-2" id=
+"fnanchor_175-2"></a><a href="#footnote_175-2" class="fnanchor">[175-2]</a>
+The purchasers of labor would, in consequence, be badly served, since they
+would have lost the possibility of obtaining better workmen by paying
+higher wages. Hence, there would, probably, be none but mediocre labor to
+be found.<a name="fnanchor_175-3" id="fnanchor_175-3"></a><a
+href="#footnote_175-3" class= "fnanchor">[175-3]</a> On the other hand,
+fixed rates which keep within the limits described in § 114 <span
+class='pagenum'>[Pg 84]</span> are, under certain circumstances, desirable.
+This is especially the case where the purchasers of labor on the one hand,
+and the buyers of labor on the other, have formed themselves into united
+groups, and where the rate fixed is only in the nature a treaty of peace
+under governmental sanction, when a war over prices had either broken out
+actually or there was danger to fear that one would break out. It must not
+be forgotten, that thus far common labor has scarcely had any thing similar
+to an "exchange."<a name="fnanchor_175-4" id="fnanchor_175-4"></a><a
+href="#footnote_175-4" class="fnanchor">[175-4]</a></p>
+
+ <p class="footnote"> <a name="footnote_175-1" id="footnote_175-1"></a>
+ <a href="#fnanchor_175-1">[175-1]</a>
+ The plague known as the black death of 1348, which devastated the greater
+ part of Europe, was followed by many complaints on the part of the buyers
+ of labor, of the cupidity and malicious conspiracies of the working
+ classes. (See <i>supra</i> § 160.) Fixed rates of wages under Peter the
+ Cruel of Castile, 1351; contemporaneously in France, Ordonnances, II, 350,
+ and in England, 25 Edw. III, c. 2; 37 Edw. III, c. 3. In France, the wages
+ of a thresher were fixed at the one-twentieth or the one-thirtieth of a
+ <i>scheffel</i>, while in present Saxony it is from one-fourteenth to
+ one-twelfth. In England, under the same ruler, who had seen his castle at
+ Windsor built, not by day laborers for wages, but by vassal masons, vassal
+ carpenters, etc., whom he got together from all parts of the kingdom. That
+ the rates might not be evaded, the succeeding king forbade both the
+ leaving of agriculture for industry and change of domicile<a name=
+ "fnanchor_TN14" id= "fnanchor_TN14"></a><a href= "#footnote_TN14" class=
+ "fnanchor">[TN 14]</a> without the consent of a justice of the peace. (12
+ Richard II., c. 3.) All such provisions were little heeded in the 16th
+ century. (<i>Rogers</i>, the Statist. Journal, 1861, 544 ff.)</p>
+
+ <p class="footnote">Fixed rates of wages under Henry VII. and Henry VIII.,
+ in the interest of workmen. (<i>Gneist</i>, Verwaltungsrecht, II, Aufl.,
+ 461 ff.) The fact that in 5 Elizabeth, c. 4, another attempt was made to
+ fix the rate of wages by governmental provisions, in which the person
+ paying more than the sum fixed was threatened with 10 days' imprisonment,
+ and the person receiving less with 12, was in part akin to the English
+ poor laws. If a poor man had the right to be eventually employed and
+ supported by the community, it was, of course, necessary that the justice
+ of the peace should be able to determine at what wages anybody should be
+ prepared to work before he could say: I can find no work. Extended by 2
+ James I., c. 6, to all kinds of work for which wages were paid.
+ (<i>Eden</i>, State of the Poor, V, 123 ff., 140.) The buyers of labor in
+ the eighteenth century frequently complained that these fixed wages were
+ more to the advantage of workmen than of their masters. (<i>Brentano</i>,
+ English Guilds., ed. by <i>Toulmin Smith</i>, 1870, Prelim. CXCI.)</p>
+
+ <p class="footnote">In Germany, the depopulation caused by the Thirty
+ Years' War explains why, before and after the peace of Westphalia, so many
+ diets were concerned with fixing the rate of wages of servants. Compare
+ <i>Spittler</i>, Gesch., Hanovers, II, 175. Among the most recent
+ instances of English fixed rates of wages, is 8 George III., for London
+ tailors, and the Spitalfields Act of 1773, for silk weavers who had, a
+ short time before, revolted. Also in New South Wales, about the end of the
+ last century, on account of the high rate of colonial wages.
+ (<i>Collins</i>, Account of the English Colonies of New South Wales,
+ 1798.) Later, <i>Mortimer</i>, Elements of Politics, Commerce and Finance,
+ 1174, 72, maintains fixed rates of wages to be necessary. In Germany the
+ imperial decree of 1830, tit., 24, and again the ordinance of Sept. 4,
+ 1871, provide that each magistrate shall fix the rate of wages in his own
+ district. <i>Chr. Wolf</i>, Vernunftige Gedanken vom gesellsch. Leben der
+ Menschen, 1721, § 487, would have the rates so fixed that the laborers
+ might live decently and work with pleasure.</p>
+
+ <p class="footnote"> <a name="footnote_175-2" id="footnote_175-2"></a>
+ <a href="#fnanchor_175-2">[175-2]</a>
+ Proposal for a fixed sale of wages in the protocols of the Chamber of
+ Lords of Nassau, 1821, 12.</p>
+
+ <p class="footnote"> <a name="footnote_175-3" id="footnote_175-3"></a>
+ <a href="#fnanchor_175-3">[175-3]</a>
+ The Spitalfields Act was repealed in 1824, for the reason that the
+ manufacturers themselves attributed the stationary condition of their
+ industries for a hundred years to the fact that they were hampered by that
+ act. <i>Ricardo's</i> and <i>Huskisson's</i> prophecies, on this occasion,
+ fulfilled by the great impulse which the English silk industries soon
+ afterwards received.</p>
+
+ <p class="footnote"> <a name="footnote_175-4" id="footnote_175-4"></a>
+ <a href="#fnanchor_175-4">[175-4]</a>
+ Compare <i>Brentano</i>, Arbeitergilden der Gegenwart, II, 288. However,
+ fixed rates of wages equitably arranged, in the establishment of which
+ neither party has been given an advantage over the other, have continued
+ to exist much longer than our distrustful and novelty-loving age would
+ think possible. Thus compositors' wages in London, from 1785 to 1800, from
+ 1800 to 1810, from 1810 to 1816, and from 1816 to 1866, remained
+ unaltered; those of London ship builders, from 1824 to 1867; of London
+ builders, from 1834 to 1853, and from 1853 to 1865. (<i>Brentano</i> II,
+ 213. Compare II, 250, 267 ff.)</p>
+
+<p class="p2 center"><a name="S176"></a>SECTION CLXXVI.</p>
+
+<p class="center smaller">WAGES-POLICY.&mdash;STRIKES.</p>
+
+<p>Where the wages-receiving class feel themselves to be a special class,
+<i>vis-a-vis</i> of the purchasers of their labor, they have frequently
+endeavored, by the preconcerted suspension of labor upon a large scale, to
+force their masters to pay them higher wages, or grant them some other
+advantage.<a name="fnanchor_176-1" id="fnanchor_176-1"></a><a
+href="#footnote_176-1" class="fnanchor">[176-1]</a> It is <span
+class='pagenum'>[Pg 85]</span> hard to say whether such strikes have more
+frequently failed or succeeded.<a name= "fnanchor_176-2" id=
+"fnanchor_176-2"></a><a href= "#footnote_176-2" class=
+"fnanchor">[176-2]</a></p>
+
+<p>As a rule, a war over prices, carried on by such means, and without
+force on either side, must generally issue in the victory of the richer
+purchasers of labor.<a name="fnanchor_176-3" id="fnanchor_176-3"></a><a
+href="#footnote_176-3" class="fnanchor">[176-3]</a> The latter require the
+<span class='pagenum'>[Pg 86]</span> uninterrupted continuation of labor
+for their convenience and profit; but the workmen need it to live. It is
+but seldom that the workmen will be in a condition to stop work for more
+than a few months, without feeling the sting of hunger. The purchaser of
+labor can live longer on his capital; and the victory here belongs to the
+party who, in the struggle, holds out longest. Hence, a strike that lasts
+more than six weeks may, for that reason alone, be considered a failure.
+The employers of labor, on account of their smaller number and greater
+education, make their counter-coalition much more secret and effective. How
+many instances there are in which labor-saving machines have come into use
+more rapidly than they otherwise would have come but for the influence of
+these coalitions!<a name="fnanchor_176-4" id="fnanchor_176-4"></a><a
+href="#footnote_176-4" class="fnanchor">[176-4]</a></p>
+
+<p>On the other hand, it cannot be ignored that a host of workmen, by means
+of an organization which provides them with a unity of will, such as the
+heads of great enterprises naturally possess, must become much better
+skilled in carrying on a struggle for higher wages. Where wages in general
+tend to rise, but by force of custom, which is specially powerful here (§
+170), are kept below their natural level, a strike may very soon attain its
+end. And workmen are all the more to be wished God-speed here in proportion
+as employers are slow to decide of their own motion upon raising wages, and
+where, under <span class='pagenum'>[Pg 87]</span> certain circumstances,<a
+name="fnanchor_176-5" id="fnanchor_176-5"></a><a href="#footnote_176-5"
+class="fnanchor">[176-5]</a> a single cold-hearted master might force all
+his competitors to keep wages down. If even the entire working class should
+follow the example of the strikers, so that all commodities, in so far as
+they are products of labor, should grow dearer to an extent corresponding
+to the rise in wages, there would still remain an improvement of the
+condition of the working class at the cost of the interest paid on capital
+and the profits of enterprise. It is, of course, otherwise with the
+struggle of workmen against the natural conditions which determine the rate
+of their wages (§§ 161-166) in which they might, in turbulent times,
+possibly succeed<a name="fnanchor_176-6" id="fnanchor_176-6"></a><a
+href="#footnote_176-6" class="fnanchor">[176-6]</a> temporarily, but would,
+in the long run, have to fail.<a name= "fnanchor_176-7" id=
+"fnanchor_176-7"></a><a href= "#footnote_176-7" class="fnanchor">[176-7]</a>
+</p>
+
+<p>The working class will be best fortified in such a struggle for higher
+wages when their organization is a permanent one, and when they have taken
+care, during good times, to collect a certain amount of capital to protect
+their members, during their cessation from work, against acute want. This
+is the object of the trades-unions as they have grown up in England,
+especially since the total decline of the guild system and of governmental
+provisions relating to apprentices, fixed rates of wages<a
+name="fnanchor_176-8" id="fnanchor_176-8"></a><a href="#footnote_176-8"
+class="fnanchor">[176-8]</a> etc. But it cannot be denied that these
+unions, although <span class='pagenum'>[Pg 88]</span> democratic in form,
+often exercise a very despotic sway over their members;<a
+name="fnanchor_176-9" id="fnanchor_176-9"></a><a href="#footnote_176-9"
+class="fnanchor">[176-9]</a> that they have, so far as the employers of
+labor are concerned, and the non-union laborers, gone back to a number of
+measures, outgrowths of the guild and embargo systems, which it was fondly
+hoped had been forever banished by the freedom of industry.<a
+name="fnanchor_176-10" id="fnanchor_176-10"></a><a href="#footnote_176-10"
+class="fnanchor">[176-10]</a> What many <span class='pagenum'>[Pg
+89]</span> of the friends of this system hope it may accomplish in the
+future, viz.: regulate the whole relation between capital and labor, and
+thus, on the whole, control the entire public economy of a people,<a
+name="fnanchor_176-11" id="fnanchor_176-11"></a><a href="#footnote_176-11"
+class="fnanchor">[176-11]</a> is, fortunately, all the more certainly a
+chimera, as any national or universal approximation to this end would be
+the most efficacious way to compel employers of labor to the formation of
+corresponding and probably far superior opposing unions. Notwithstanding
+this, however, I do not doubt that the recent development of trades-unions
+in England is both a cause and an effect of the rise in wages in the
+branches of industry in question, as well as of the moral elevation of the
+condition of the working class which has simultaneously taken <span
+class='pagenum'>[Pg 90]</span> place.<a name="fnanchor_176-12"
+id="fnanchor_176-12"></a><a href="#footnote_176-12" class=
+"fnanchor">[176-12]</a> The mere possibility of a strike is of itself
+calculated, in the determination of the rate of wages, to procure for the
+equitable purchaser of labor the desirable preponderance over the
+inequitable.<a name="fnanchor_176-13" id="fnanchor_176-13"></a><a
+href="#footnote_176-13" class="fnanchor">[176-13]</a></p>
+
+ <p class="footnote"> <a name="footnote_176-1" id="footnote_176-1"></a>
+ <a href="#fnanchor_176-1">[176-1]</a>
+ Even <i>Boisguillebert</i>, Traité des Grains, was acquainted with
+ instances of this kind in which from 600 to 800 workmen simultaneously
+ left their masters. There are much earlier instances in Italy. Thus, in
+ Sienna, in 1381 and 1384, in which the nobility sided with the workmen.
+ (Rerum Ital. Scriptores, XV, 224, 294.) Strikes of journeymen began to be
+ much more frequent in Germany in the guilds, from the time of the prospect
+ of their becoming masters themselves, and of their living in the family of
+ the masters had decreased. On similar strikes at Spires,<a name=
+ "fnanchor_TN15" id= "fnanchor_TN15"></a><a href= "#footnote_TN15" class=
+ "fnanchor">[TN 15]</a> in 1351, at Hagenau in 1409, and Mainz in 1423, see
+ <i>Mone's</i>, Zeitschrift, XVII, 56; XIII, 155, and <i>Hegel,</i>
+ Strassb. Chr., II, 1025. A remarkable strike of the Parisian book printers
+ under Francis I. (<i>Hildebrand's</i> Jahrb., 1873, II, 375 ff.) In
+ so-called "home manufactures," where the "manufacturer" is both orderer,
+ preparer and seller, but strikes are scarcely possible without much fixed
+ capital. The strike of the factory spinners in Lancashire in 1810 caused
+ 30,000 workmen to stop work for four months.</p>
+
+ <p class="footnote">Among the next following coalitions of labor, those of
+ the Glasgow weavers in 1812 and 1822 were very important. In the latter,
+ two workmen who would not participate with the strikers were blinded with
+ sulphuric acid. In 1818, great strike by the Scotch miners. The Preston
+ strike of 1853 lasted 36 weeks. It is said that 6,200 male and 11,800
+ female working people took part in it. (<i>Athenæum</i>, 30 Sept., 1854.)
+ Compare <i>Morrison</i>, Essay on the Relations between Labor and Capital,
+ 1854. For a history of Swiss strikes, especially of the Zürich
+ compositors' strike in 1873, see <i>Böhmert</i>, Arbeiterverhältnisse, II,
+ 287 ff. Comic type of a strike of married women in <i>Aristophanes</i>,
+ Lysistrata. A practical one in Rome at the departure of the plebeians for
+ the holy mountains, 492 before Christ. (<i>Livy</i>, II, 32,) then, on a
+ small scale, on the removal of the pipers after Tiberius, 311 before
+ Christ. (<i>Liv.</i>, IX, 30.)</p>
+
+ <p class="footnote"> <a name="footnote_176-2" id="footnote_176-2"></a>
+ <a href="#fnanchor_176-2">[176-2]</a>
+ Instances of successful strikes: Fortnightly Review, Nov. 1865. Similarly
+ in Germany, in 1865; but there, in truth, many strikes were only defensive
+ and intended to restore the former thing-value of the declined money
+ (Werke, XIII, 151). The English strikes, in 1866 and 1867, failed nearly
+ all, so that wages again declined to their level in 1859, and in many
+ places, to what they had been in the crisis-year 1857. (Ausland, 16 April,
+ 1868.) As to how even in Victoria, strikes which opposed a decline of
+ wages from 16 to from 8 to 10 shillings a day failed, after doing great
+ injury, see Statist. Journ., 1861, 129 ff.</p>
+
+ <p class="footnote"> <a name="footnote_176-3" id="footnote_176-3"></a>
+ <a href="#fnanchor_176-3">[176-3]</a>
+ The Preston strikers of 1853 got even from their non-striking colleagues,
+ £30,000. Had their masters prevented this, the affair would have been
+ terminated much sooner. (Quart. Rev., Oct. 1859.) But employers are much
+ more frequently divided by rivalries than workmen, especially in strikes
+ against new machines or when a manufacturer, who has too large a supply of
+ goods on hand, desires a strike himself. On account of their smaller
+ number, too, they are less in a condition to declare a recusant colleague
+ in disgrace. <i>Adam Smith's</i> remark that coalitions of capitalists are
+ much more frequent than those of workmen, only that much less is said of
+ them, is hardly applicable to our time. (Wealth of Nat., I, ch. 8, p. 100,
+ ed. Bas.) But, since the strike of the London builders in 1859,
+ capitalists have begun to form more general opposing unions. On a very
+ energetic one among the ship builders on the Clyde, see <i>Count de
+ Paris</i>, Les Associations ouvrières en Angleterre, 1869, ch. 7. Examples
+ on a smaller scale, Edinburg Review, LXXXIX, 327 ff. On the other hand, a
+ "lock-out" on the part of capitalists is very difficult, from the fact
+ that it is impossible to prevent idle workmen from being supported from
+ the poor fund. Moreover, there can be no greater folly than for the
+ workmen to add insult to their masters to their demand for higher wages,
+ because then the limits within which the latter are willing to continue
+ the business at all, are made much narrower, than they would be on a
+ merely economic estimate.</p>
+
+ <p class="footnote"> <a name="footnote_176-4" id="footnote_176-4"></a>
+ <a href="#fnanchor_176-4">[176-4]</a>
+ Thus the "iron man," by which a single person can put from 1,500 to 3,000
+ spindles in motion; also an improved plane-machine, by means of which
+ several colors can be printed at once. (<i>Ure</i>, Philosophy of
+ Manufactures, 366 ff.) Machines for riveting cauldrons. (<i>Dingler</i>,
+ Polytechnisches Journal, LXXV, 413.)</p>
+
+ <p class="footnote"> <a name="footnote_176-5" id="footnote_176-5"></a>
+ <a href="#fnanchor_176-5">[176-5]</a>
+ Compare the statements in the Statist. Journal, 1867, 7.</p>
+
+ <p class="footnote"> <a name="footnote_176-6" id="footnote_176-6"></a>
+ <a href="#fnanchor_176-6">[176-6]</a>
+ Thus in several places in 1848, and in Paris in 1789, where even the
+ lackeys and apothecary clerks formed such unions. (<i>Wachsmuth</i>,
+ Gesch. Frankreichs im Revolutionszeitalter, I, 178.) Similarly, frequently
+ in isolated factories.</p>
+
+ <p class="footnote"> <a name="footnote_176-7" id="footnote_176-7"></a>
+ <a href="#fnanchor_176-7">[176-7]</a>
+ <i>Thornton</i> mentions six instances in which strikes and strike-unions
+ may permanently raise wages: a, when those engaged in an enterprise have a
+ virtual monopoly in their own neighborhood; b, when the country has, for
+ the industry in question, great advantage over other lands; c, when the
+ demand for the product of the industry is necessary on account of an
+ increasing number and increasing capacity to pay of customers; d, when the
+ progress of the arts, especially of machinery, makes the industry more
+ productive; e, when the rise in the rate of wages affects all branches of
+ industry to the same extent, and at the same time; f, when the industry is
+ carried on on so large a scale that it yields greater profit, even while
+ paying a smaller percentage than other industries. (On Labour, III, ch.
+ 4.) It is easy to see that many of these conditions meet in the building
+ industries in large cities.</p>
+
+ <p class="footnote"> <a name="footnote_176-8" id="footnote_176-8"></a>
+ <a href="#fnanchor_176-8">[176-8]</a>
+ Compare <i>Brentano</i> in the Preliminary Essay to <i>T. Smith's</i>
+ English Guilds, ch. LXXII ff. The same author's Die Arbeitergilden der
+ Gegenwart Bd., I, 1871.</p>
+
+ <p class="footnote"> <a name="footnote_176-9" id="footnote_176-9"></a>
+ <a href="#fnanchor_176-9">[176-9]</a>
+ The greater number of strikes begin with a small minority, generally of
+ the best paid workmen, whom the others follow unwillingly but blindly.
+ (Edinb. Rev., 149, 422.) The despotic power of the Unions over their
+ members depends principally on the fact that their treasury serves not
+ only to maintain strikes but at the same time as an insurance fund for old
+ age and sickness, and that every case of disobedience of a member is
+ punished by expulsion, i. e., with the loss of everything he has
+ contributed. Hence the Quart. Rev., Oct., 1867, advises that these two
+ purposes which are so hard, technically speaking, to reconcile with each
+ other, should be required to be kept separate, especially as most of the
+ unions, considered as benevolent associations, are really insolvent.
+ (Edinb. Review, Oct., 1867, 421 ff.) On the other hand, both the <i>Count
+ of Paris</i>, ch. 3, and <i>Thornton</i> are favorable to the admixture of
+ humane and offensive objects in the trades-unions, because the former
+ contribute to make the latter milder. <i>Brentano</i>, I, 153, has no
+ great objection to the insolvency shown by the books of the unions
+ <i>vis-a-vis</i> of their duties as insurers, since, hitherto, the
+ subscription of an extraordinary sum has never failed to make up the
+ deficit. A strike is detrimental in proportion as the striking workmen
+ represent more of the previous preliminary operations that go to finish a
+ product; as when, for instance, the 50 or 60 spinners in a factory strike,
+ and in consequence, from 700 to 800 other workmen are thrown out of
+ employment and forced into idleness against their will. What might not
+ have been the consequence of the great union of the coal miners of Durham
+ and Northumberland, the members of which numbered 40,000 men, and stopped
+ work from April to the beginning of September, 1864, so that at last it
+ became necessary to carry Scotch coal to Newcastle! Compare <i>Engels</i>,
+ Lage der arbeitenden Klassen in England, 314 ff.</p>
+
+ <p class="footnote"> <a name="footnote_176-10" id="footnote_176-10"></a>
+ <a href="#fnanchor_176-10">[176-10]</a>
+ The English unions even forbid their members to exceed the established
+ time of work, or the established task. Thus, for instance, a penalty of
+ one shilling for carrying at any time more than eight bricks in the case
+ of masons, and a similar penalty inflicted on the person's companions who
+ witness the violation of the rule and do not report the guilty party.
+ Equality of wages for all members; piece-wages allowed only when the
+ surplus earned is divided among one's companions. Hence the complete
+ discouragement of all skill or industry above the average. If an employer
+ exceeds the prescribed number of apprentices; if he engages workmen not
+ belonging to the union; if he introduces new machines, a strike is
+ ordered. With all this the severest exclusion respectively of one class of
+ tradesmen by the other. If a carpenter lays a few stones, a strike
+ immediately! (Quart. Rev., October, 1867, 363, 373.) Rigid shutting out of
+ the products of one district from another. (Edinburg Rev., October, 1867,
+ 431.) The poor hand-weavers were thus prevented going from their
+ over-crowded trade into another. (<i>J. Stuart Mill</i>, Principles, II,
+ ch. 14, 6.) However, many trades-unions still seem to be free from these
+ degenerations, and the most influential unions the most moderate in their
+ proceedings. (<i>Count de Paris</i>, ch. 8, 9; <i>Thornton</i>, III, ch.
+ 2.) <i>Brentano</i> expressly assured us that such degeneration of the
+ unions in England is confined to the building trades-unions. (I, 68,
+ 188.)</p>
+
+ <p class="footnote"> <a name="footnote_176-11" id="footnote_176-11"></a>
+ <a href="#fnanchor_176-11">[176-11]</a>
+ "They have no notion of contenting themselves with an equal voice in the
+ settlement of labor questions; they tell us plainly that what they aspire
+ to is to control the destinies of labor, ... to dictate, to be able to
+ arrange the conditions of employment at their own discretion."
+ (<i>Thornton</i>, III, ch. 1.) The membership of the English trades-unions
+ was estimated, at the Manchester Congress, June, 1868, at 500,000 by some,
+ and at 800,000 by others. <i>Brentano</i>, II, 310, speaks of 960,000.
+ Since 1830, there have been frequent endeavors to effect a great
+ combination, with special organizations of the different trades. During
+ recent years, there have been even beginnings of an international
+ organization, although in Germany, for instance, at the end of 1874, there
+ were 345 trades-unions, with a membership of over 21,000. (<i>M.
+ Hirsch.</i>) A formal theory of workmen's unions to culminate in popular
+ representation, in <i>Dühring</i>, Arbeit und Kapital, 1866, especially,
+ p. 233; while the American <i>Walker</i> accuses all such combinations,
+ which used compulsion on any one, of moral high treason against republican
+ institutions. (Science of Wealth, 272.)</p>
+
+ <p class="footnote"> <a name="footnote_176-12" id="footnote_176-12"></a>
+ <a href="#fnanchor_176-12">[176-12]</a>
+ The former view, for instance, of <i>Harriet Martineau</i>, "The tendence
+ of strikes and sticks to produce low wages" (1834) is now unconditionally
+ shared only by few. When <i>Sterling</i> says that the momentary success
+ of a strike is followed by a two-fold reaction which restores the natural
+ equilibrium, viz.: increase of the number of workmen and decrease of
+ capital (Journal des Econ., 1870, 192), he overlooks not only the length
+ of the transition time which would certainly be possible here, but also
+ that an altered standard of life of the workmen prevents the former, and
+ one of the capitalists the latter. The <i>Count of Paris</i> and
+ <i>Thornton</i> do not doubt that the elevation of the condition of the
+ English working classes, as proved by <i>Ludlow</i> and <i>Jones</i>, is
+ to be ascribed, in part, to the effect of the trades-unions. Many of the
+ unions work against the intemperance and quarrelsomeness of their members.
+ The people's charter of 1835, came from the London "workingmen's
+ association."</p>
+
+ <p class="footnote"> <a name="footnote_176-13" id="footnote_176-13"></a>
+ <a href="#fnanchor_176-13">[176-13]</a>
+ On the great utility of the arbitration courts between masters and
+ workingmen, by which the struggle for wages is terminated in a peaceable
+ manner and without any interruption of work, see <i>Schäffle</i>,
+ Kapitalismus and Socialismus, 659. More minutely in <i>Thornton</i>, III.,
+ ch. 5. <i>Faucher</i>, Vierteljahrsschr., 1869, III, 302, calls attention
+ to the fact that such "boards" may be abused to oppress small
+ manufacturers.</p>
+
+<p class="p2 center"><a name="S177"></a>SECTION CLXXVII.</p>
+
+<p class="center smaller">WAGES-POLICY.&mdash;STRIKES AND THE STATE.</p>
+
+<p>Should the state tolerate the existence of strikes or strike-unions?
+Legislation in the past most frequently gave a negative answer to the
+question, as well from a repugnance for high wages as for the self-help of
+the masses.<a name="fnanchor_177-1" id="fnanchor_177-1"></a><a
+href="#footnote_177-1" class="fnanchor">[177-1]</a> But even leaving <span
+class='pagenum'>[Pg 91]</span> the above reasons out of consideration,
+every strike is a severe injury to the national resources in general,<a
+name="fnanchor_177-2" id="fnanchor_177-2"></a><a href="#footnote_177-2"
+class="fnanchor">[177-2]</a> one which causes that part especially to
+suffer from which those engaged in the various enterprises and the working
+class draw their income. And, even for the latter, the damage endured is so
+great that it can be compensated for only by very permanently high wages.<a
+name="fnanchor_177-3" id="fnanchor_177-3"></a><a href="#footnote_177-3"
+class="fnanchor">[177-3]</a> How many a weak man has been misled by a long
+cessation from work during a strike, which ate up his savings, into lasting
+idleness and a devil-may-care kind of life. When employers, through fear of
+strikes, keep all <span class='pagenum'>[Pg 92]</span> large orders, etc.
+secret, the workmen are not in a condition to forecast their prospects and
+condition even for the near future. And in the end a dread of the frequent
+return of such disturbances may cause capital to emigrate.<a
+name="fnanchor_177-4" id="fnanchor_177-4"></a><a href="#footnote_177-4"
+class="fnanchor">[177-4]</a></p>
+
+<p>However, where there exists a very high degree of civilization, there is
+a balance of reasons in favor of the non-intervention of governments,<a
+name="fnanchor_177-5" id="fnanchor_177-5"></a><a href="#footnote_177-5"
+class="fnanchor">[177-5]</a> but only so long as the striking workmen are
+guilty of no breach of contract and of no crime. Where every one may
+legally throw up his employment, there is certainly no plausible legal
+objection to all of them doing so at once, and then forming new
+engagements. Coalitions of purchasers of labor for the purpose of lowering
+wages, which are most frequent though noiselessly formed, the police power
+of the state cannot prevent. If now it were attempted to keep the working
+class alone from endeavoring to correspondingly raise their wages, the
+impression would become general, and be entertained with right, that the
+authorities were given to measuring with different standards. Where the
+working classes so sensitively feel the influence of the government on the
+state of their wages, they would be only too much inclined to charge every
+chance pressure made by the circumstances of the times to the account of
+the state, and thus burthen it with a totally unbearable responsibility.
+Since 1824, freedom of competition has prevailed in this matter on both
+sides in England.<a name="fnanchor_177-6" id="fnanchor_177-6"></a><a
+href="#footnote_177-6" class="fnanchor">[177-6]</a> The <span
+class='pagenum'>[Pg 93]</span> dark side of the picture would be most
+easily brightened by a longer duration of contracts of labor.<a
+name="fnanchor_177-7" id="fnanchor_177-7"></a><a href="#footnote_177-7"
+class="fnanchor">[177-7]</a></p>
+
+<p>Whether the trades-unions, when they shall have happily withstood the
+fermentative process now going on, shall be able to fill up the void
+created by the downfall of the economically active corporations of the
+latter part of the middle ages, we shall discuss in our future work, Die
+Nationalökonomik des Gewerbfleisses. One of the chief conditions precedent
+thereto is the strict justice of the state, which should protect members of
+the unions from all tyranny by their leaders, and from violations of the
+legal rights of non-members.<a name= "fnanchor_177-8" id=
+"fnanchor_177-8"></a><a href= "#footnote_177-8" class="fnanchor">[177-8]</a>
+</p>
+
+ <p class="footnote"> <a name="footnote_177-1" id="footnote_177-1"></a>
+ <a href="#fnanchor_177-1">[177-1]</a>
+ Thus even 34 Edw. III., c. 9. Journeymen builders were forbidden by 3
+ Henry VI., c. 1, to form conspiracies to enhance the rate of wages, under
+ pain of felony. Finally, 39 and 40 George III., c. 106, threatened any one
+ who, by mere persuasion, should induce a workman to leave his master's
+ service, etc., with 2 months in the work-house, or 3 months' imprisonment.
+ In France, as late as June and September, 1791, all conspiracies to raise
+ wages were prohibited under penalty, the incentive to such prohibition
+ being the opposition to all <i>intérêts intermédiaries</i> between the
+ <i>intérêts particulier</i>; and the <i>intérêt general</i> which is
+ characteristic of the entire revolution. Compare the law of 22 Germinal,
+ 11. The German Empire on the 16th of August, 1731, threatened journeymen
+ strikers even with death, "when accompanied by great refractoriness and
+ productive of real damage." (Art. 15.)</p>
+
+ <p class="footnote"> <a name="footnote_177-2" id="footnote_177-2"></a>
+ <a href="#fnanchor_177-2">[177-2]</a>
+ The strike of the spinners of Preston, to compel equal wages with those of
+ Bolton, lasted from October to the end of December, 1836. The spinners got
+ from their treasury 5 shillings a week (previously 22½ shillings wages);
+ twisters, 2 to 3 shillings; carders and weavers lived on alms. In the
+ middle of December, the funds of the union were exhausted. Altogether, the
+ workmen lost 400,000 thalers; the manufacturers, over 250,000; and many
+ merchants failed. (<i>H. Ashworth</i>, Inquiry into the Origin and Results
+ of the Cotton Spinners' Strike.) The Preston strike of 1853 cost the
+ employers £165,000, the workmen, £357,000. (Edinburgh Rev., July, 1854,
+ 166.) The North-Stafford puddlers' strike, in 1865, cost the workmen in
+ wages alone £320,000. Concerning 8 strikes that failed, mostly between
+ 1859 and 1861, which cost in the aggregate £1,570,000, of which £1,353,000
+ were wages lost, see Statist. Journ., 1861, 503. A great mortality of the
+ children of workingmen observed during strikes!</p>
+
+ <p class="footnote"> <a name="footnote_177-3" id="footnote_177-3"></a>
+ <a href="#fnanchor_177-3">[177-3]</a>
+ <i>Watts</i> assumes that the strikers seek to attain, on an average, an
+ advance in their wages of five per cent. Now, a week is about equivalent
+ to two per cent. of the year. If, therefore, a strike lasted one month,
+ the increase of wages it operates must last one and three-fifths years to
+ compensate the workmen for their loss. A strike that lasts 12½ months
+ would require 20 years to effect the same, and this does not include
+ interest on lost wages. (Statist. Journal, 1861, 501 ff.) However, it is
+ possible that the striking workingmen themselves should lose more than
+ they gained, but that, for the whole working class, the gain should exceed
+ the loss; since those who had not participated in the strike would
+ participate in the increased wages. <i>Thornton</i> is of opinion that
+ employers have won in most strikes, but surrendered in the intervals
+ between strikes, so that now English workmen receive certainly £5,000,000
+ more in wages than they would be getting were it not for the
+ trades-unions. (III, ch. 3-4.)</p>
+
+ <p class="footnote"> <a name="footnote_177-4" id="footnote_177-4"></a>
+ <a href="#fnanchor_177-4">[177-4]</a>
+ By the Norwich strike, about the beginning of the fourth decade of this
+ century, what remained of the industrial life of that city disappeared.
+ (<i>Kohl</i>, Reise, II, 363 ff.) Similarly in Dublin. (Quart. Rev.,
+ October, 1859, 485 ff.) In Cork, the workingmen's union, in 1827, allowed
+ no strange workmen to join them, and, it is said, committed twenty murders
+ with a view to that end. The builders demanded 4s. 1d. a day wages. This
+ discouraged the erection of new buildings, and it frequently happened that
+ they found employment only one day in two weeks. (Edinb.<a name=
+ "fnanchor_TN16" id= "fnanchor_TN16"></a><a href= "#footnote_TN16" class=
+ "fnanchor">[TN 16]</a> Rev., XLVII, 212.) When workingmen struggle against
+ a natural decline of the rate of wages, they, of course, add to their
+ misfortune.</p>
+
+ <p class="footnote"> <a name="footnote_177-5" id="footnote_177-5"></a>
+ <a href="#fnanchor_177-5">[177-5]</a>
+ The grounds on which <i>Brentano</i>, following <i>Ludlow</i> and
+ <i>Harrison</i>, justifies the intervention of the state, have a very
+ dangerous bearing, inasmuch as they do not suppose, as a condition
+ precedent, a perfectly wise and impartial governmental authority.</p>
+
+ <p class="footnote"> <a name="footnote_177-6" id="footnote_177-6"></a>
+ <a href="#fnanchor_177-6">[177-6]</a>
+ 5 George IV., c. 95: "provided no violence is used." Further, 6 George
+ IV., c. 129, and 122 Vict., c. 34. The law of 1871 declares the
+ trades-unions lawful, allows them the right of registration, and thus
+ empowers them to hold property. In France, the law of May 25, 1864, alters
+ articles 414 to 416 of the <i>Code pénal</i> to the effect that only such
+ strikes shall be punished as happen <i>à l'aide de violences, voies de
+ fait, manœuvres frauduleuses</i>; also coalitions against the <i>libre
+ exercise du travail à l'aide d'amendes, défenses, proscriptions,
+ interdictions</i>. But these amendments were rendered rather inoperative
+ by the fact that meetings of more than 20 persons could be held only by
+ permission of the police.</p>
+
+ <p class="footnote"> <a name="footnote_177-7" id="footnote_177-7"></a>
+ <a href="#fnanchor_177-7">[177-7]</a>
+ As, for instance, the coal workers in the north of England required a half
+ year's service. So long as the trades-unions consider themselves, by way
+ of preference, as instruments of war, it is conceivable how they oppose
+ all binding contracts for labor. So now among the German journeymen
+ book-printers, and so, also, for the most part, in England.
+ (<i>Brentano</i>, II, 108.) In quieter times, when the trades-unions shall
+ have become peace institutions, this will be otherwise. We cannot even
+ enjoy the bright side of the freedom of birds without enduring its dark
+ side! In Switzerland, breaches of contract by railroad officers are
+ guarded against by their giving security beforehand; in manufactures, by
+ the holding back of from 3 to 14 days' wages. (<i>Böhmert</i>,
+ Arbeiterverhältnisse, II, 91, 388 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_177-8" id="footnote_177-8"></a>
+ <a href="#fnanchor_177-8">[177-8]</a>
+ In Switzerland, the trades-unions have shown themselves very powerful
+ against the employers of tradesmen, but rather powerless against
+ manufacturing employers, and thus materially increased the already
+ existing inferiority of the former. (<i>Böhmert</i>, II, 401.) They may,
+ however, by further successful development, constitute the basis of a new
+ smaller middle class, similar to the tradesmen's<a name= "fnanchor_TN17"
+ id= "fnanchor_TN17"></a><a href= "#footnote_TN17" class= "fnanchor">[TN
+ 17]</a> guilds at the end of the middle ages; and indeed by a new
+ exclusiveness, in a downward direction. This would be a bulwark against
+ the destructive inroads of socialism similar to that which the freed
+ peasantry in France were and still are. While this is also
+ <i>Brentano's</i> view, <i>R. Meyer</i>, Emancipationskampf des vierten
+ Standes, 1874, I, 254 ff., calls the trades-unions a practical preparation
+ for socialism to which the English "morally went over" in 1869 (I, 751);
+ which indeed loses much of the appearance of truth from the fact that
+ <i>Marx</i> (<i>Brentano</i>, Arbeitergilden, II, 332) and the disciples
+ of <i>Lassalle</i> (<i>Meyer</i>, I, 312) hold the trades-unions in
+ contempt. <i>John Stuart Mill</i> approves of all trades-unions that seek
+ to effect the better remuneration of labor, and opposes all which would
+ bring the wages paid for good work and bad work to the same level.
+ (Principles, II, ch. 14, 6; V, ch. 10, 5.) Compare <i>Tooke</i>, History
+ of Prices, VI, 176. Reports of the Commissioners appointed to inquire into
+ the Organization and Rules of Trades-Unions, 1857.</p>
+
+<p class="p2 center"><span class='pagenum'>[Pg 94]</span><a
+name="S178"></a>SECTION CLXXVIII.</p>
+
+<p class="center smaller">WAGES-POLICY.&mdash;MINIMUM OF WAGES.</p>
+
+<p>The demand<a name="fnanchor_178-1" id="fnanchor_178-1"></a><a
+href="#footnote_178-1" class="fnanchor">[178-1]</a> so frequently heard
+recently, that the state should guaranty an "equitable" minimum of wages,
+could be granted where the natural rate of wages has fallen below that
+minimum, only on condition that some of the working class in the
+distribution of the wages capital (no longer sufficient in all the less
+profitable branches of business) should go away entirely empty handed.
+Hence, as a rule, in addition to that wages-guaranty, the guaranty of the
+right to labor is also required. But as useful labor always finds
+purchasers (the word "useful" being here employed in the sense of the
+entire economy of a people, and understood in the light of the proper
+gradation of wants and the means of satisfying them), such a right to labor
+means no more and no less than that the state should force labor which no
+one can use, upon others.<a name= "fnanchor_178-2" id=
+"fnanchor_178-2"></a><a href= "#footnote_178-2" class=
+"fnanchor">[178-2]</a> Something <span class='pagenum'>[Pg 95]</span>
+similar is true of Louis Blanc's proposition that the rate of wages of the
+workmen should be determined and regulated by their own votes and among
+themselves.<a name= "fnanchor_178-3" id= "fnanchor_178-3"></a><a
+href="#footnote_178-3" class= "fnanchor">[178-3]</a></p>
+
+<p>All such measures are injurious in proportion as they, by extending aid
+and the amount of the minimum, go beyond the limits of benevolence, and
+approach those of a community of goods. (§ 81 ff.) However, if they would
+be lasting and not pull workmen rapidly down to the very depths of
+universal and irremediable misery, these measures should be accompanied by
+the bestowal of power on the guarantor to hold the further increase of the
+human family within bounds.<a name= "fnanchor_178-4" id=
+"fnanchor_178-4"></a><a href="#footnote_178-4" class="fnanchor">[178-4]</a>
+</p>
+
+<p>The condition of workmen can be continued good or materially improved
+only on condition that their numbers increase less rapidly than the capital
+destined for wages. The latter increases usually and most surely by
+savings. But only the middle classes are really saving. In England, for
+instance, the national capital increases every year by at least
+£50,000,000, while the working classes spend at least £60,000,000 in
+tobacco and spirituous liquors, <i>i. e.</i>, in numberless instances, only
+for a momentary injurious enjoyment by the adult males of the class, one in
+which their families have almost no share. According to this, every
+compulsory rise in wages would be a taking away from the saving class and a
+giving to a class that <span class='pagenum'>[Pg 96]</span> effect no
+savings. Is not this to act after the manner of the savages who cut down a
+fruit tree in order more conveniently to relish its fruit?<a
+name="fnanchor_178-5" id="fnanchor_178-5"></a><a href="#footnote_178-5"
+class="fnanchor">[178-5]</a></p>
+
+<p>Benjamin Franklin calls out to workmen and says: If any one tells you
+that you can become rich in any other way than through industry and
+frugality, do not listen to him; he is a poisoner! And, in fact, only those
+changes permanently improve the condition of the working classes which are
+useful to the whole people: enhanced productiveness of every branch of
+business in the country, increased capital, the growth (also relative) of
+the industrial middle classes, the greater education, strength of
+character, skill and fidelity in labor of workmen themselves. Much
+especially depends upon their foresight and self-control as regards
+bringing children into the world. Without this latter virtue even the
+favorable circumstances would be soon trifled away.<a name="fnanchor_178-6"
+id="fnanchor_178-6"></a><a href="#footnote_178-6" class="fnanchor">[178-6]
+</a></p>
+
+ <p class="footnote"> <a name="footnote_178-1" id="footnote_178-1"></a>
+ <a href="#fnanchor_178-1">[178-1]</a>
+ Compare, besides, the Prussian A. L. R., II, 19, 2. In <i>Turgot</i>,
+ <i>droit du travail</i>, and <i>droit au travail</i> are still confounded
+ one with the other. Œuvres éd. <i>Daire</i>, II, 302 ff; especially 306.
+ In such questions, people generally think only of factory hands. But have
+ not writers just as good a <i>droit au travail</i> to readers whom the
+ state should provide them with, lawyers to clients and doctors to
+ patients?</p>
+
+ <p class="footnote"> <a name="footnote_178-2" id="footnote_178-2"></a>
+ <a href="#fnanchor_178-2">[178-2]</a>
+ <i>L. Faucher</i> calls the <i>droit au travail</i> worse than the equal
+ and compulsory distribution of all goods, because it lays hands on not
+ only present products but even on the productive forces. It supposes that
+ unlimited production is possible; that the state may regulate the market
+ at pleasure to serve its purposes; that, in fact, the state can give
+ without having first taken what it gave. (Mélanges d'Economie politique,
+ II, 148 ff.) The French national assembly rejected the "right to labor" on
+ the 15th of September, 1848, by 596 ayes to 187 nays, after the
+ provisional government had proclaimed it, February 25. Le Droit au Travail
+ à l'Assemblée nationale avec des Observations de <i>Faucher, Wolowski,
+ Bastiat</i> etc., by <i>J. Garnier</i>, Paris, 1848.</p>
+
+ <p class="footnote"> <a name="footnote_178-3" id="footnote_178-3"></a>
+ <a href="#fnanchor_178-3">[178-3]</a>
+ <i>L. Blanc</i>, De L'Organization du Travail, 1849.</p>
+
+ <p class="footnote"> <a name="footnote_178-4" id="footnote_178-4"></a>
+ <a href="#fnanchor_178-4">[178-4]</a>
+ "Every one has a right to live. We will suppose this granted. But no one
+ has a right to bring creatures into life to be supported by other people.
+ Whoever means to stand upon the first of these rights must renounce all
+ pretension to the last.... Posterity will one day ask with astonishment
+ what sort of people it could be among whom such preachers could find
+ proselytes." (<i>J. S. Mill</i>, Principles, II, ch. 12.)</p>
+
+ <p class="footnote"> <a name="footnote_178-5" id="footnote_178-5"></a>
+ <a href="#fnanchor_178-5">[178-5]</a>
+ Compare <i>Morrison</i>, loc. cit. Quarterly Rev., Jan. 1872, 260. The
+ English savings in the savings banks, between 1839 and 1846, increased
+ yearly in amount only £1,408,630, and scarcely half of this came from
+ wages-workmen in the narrower sense of the term. What the latter
+ contribute to the fund for the old and sick is not really productive
+ capital but only individually deferred consumption. Let us suppose that a
+ man had an income of $3,000 a year, of which he laid out yearly $2,000
+ ($1,000 for wages, $1,000 for rent and interest<a name= "fnanchor_TN18"
+ id= "fnanchor_TN18"></a><a href= "#footnote_TN18" class= "fnanchor">[TN
+ 18]</a> on capital), and that he capitalizes $1,000. If now this man were,
+ either through philanthropy or in furtherance of socialism, to double the
+ wages he paid, the result would not be detrimental to the economic
+ interests of the whole country only on the supposition that working
+ classes who received the increased wages should either save what he is no
+ longer able to save, or that by inventions or greater personal skill,
+ etc., they should increase the national income.</p>
+
+ <p class="footnote"> <a name="footnote_178-6" id="footnote_178-6"></a>
+ <a href="#fnanchor_178-6">[178-6]</a>
+ According to <i>Hildebrand's</i> Jahrbb., 1870, I, 435, 193, North
+ American workmen, the quality of work being supposed the same, now
+ accomplish from 20 to 30 per cent. less than before 1860. Thus, in 1858,
+ in New York, a steam engine was manufactured for $23,000, in 2,323 work
+ days. In 1869, a similar one was built for $40,000 in 3,538 days. In the
+ former case, the manufacturer made a profit. In the latter, he lost
+ $5,000.</p>
+
+ <p class="footnote"><i>John Stuart Mill</i>, II, ch. 13. Against the
+ "philanthropists" who find it hard to preach to the poor, the only
+ efficacious means of improving their condition, <i>Dunoyer</i>, L. du T.,
+ IV, ch. 10, says: The rich <i>do</i> employ it, although they have much
+ less need of it! Even <i>Marlo</i> admits that a guaranty of the right to
+ labor, without any measures to limit population, would, in a short time,
+ and irredeemably lead the country to destruction. (Weltökonomie, I, 2,
+ 357.) <i>von Thünen</i>, der isolirte Staat., II, 1, 81 ff., would take a
+ leap out of the vicious circle that those who live by the labor of their
+ hands can produce no rise in their wages, because they are too little
+ educated to hold their increase properly in check; and that, on the other
+ hand, they cannot give their children a decent education, because their
+ wages are too low; by suggesting that educational institutions should be
+ established by the state, and that these should elevate the subsequent
+ generation of workmen intellectually.</p>
+
+<p><span class='pagenum'>[Pg 97]</span></p>
+
+<h3 class="p4">CHAPTER IV.</h3>
+
+<h3>INTEREST ON CAPITAL.</h3>
+
+<p class="p2 center"><a name="S179"></a>SECTION CLXXIX.</p>
+
+<p class="center smaller">THE RATE OF INTEREST IN GENERAL.</p>
+
+<p>Interest on capital,<a name= "fnanchor_179-1" id=
+"fnanchor_179-1"></a><a href= "#footnote_179-1" class=
+"fnanchor">[179-1]</a> or the price paid for the use of capital, should not
+be confounded with the price of money (§ 42); although in common life
+people so frequently complain of want of money where there is only a want
+of capital, and sometimes even when there is a superabundance of money.<a
+name="fnanchor_179-2" id="fnanchor_179-2"></a><a href="#footnote_179-2"
+class="fnanchor">[179-2]</a> This error is connected with the fact, that
+for the sake of convenience, loans of capital are so often effected in the
+form of <span class='pagenum'>[Pg 98]</span> money and that they are always
+at least estimated in money; but neither of these things is essential.</p>
+
+<p>In reality, however, we as seldom meet with interest<a name=
+"fnanchor_179-3" id="fnanchor_179-3"></a><a href="#footnote_179-3"
+class="fnanchor">[179-3]</a> pure and simple, as we do with rent pure and
+simple. A person who works with his own capital can, at best, by a
+comparison with others, determine where, in the returns of his business,
+wages stop and interest begins.<a name="fnanchor_179-4"
+id="fnanchor_179-4"></a><a href="#footnote_179-4" class=
+"fnanchor">[179-4]</a> And even in the loaning of capital, it depends
+largely on supply and demand, whether the creditor shall suffer a deduction
+in consequence of the absence of care and labor attending his gain, and
+whether the debtor, in order to get some capital at all, shall sacrifice a
+part of the wages of his labor.<a name="fnanchor_179-5" id=
+"fnanchor_179-5"></a><a href= "#footnote_179-5" class=
+"fnanchor">[179-5]</a> When Adam Smith assumes it to be the rule that the
+"profit of stock" is about twice as great as the "interest of money,"<a
+name= "fnanchor_179-6" id="fnanchor_179-6"></a><a href= "#footnote_179-6"
+class= "fnanchor">[179-6]</a> it is evident that a considerable amount of
+what is properly wages or profit of <span class= 'pagenum'>[Pg 99]</span>
+the employer (<i>Uhternekmer</i> = undertaker) is included in the
+former.</p>
+
+<p>Many businesses have the reputation of paying a very large interest on
+the capital employed in them, when in reality they only pay the undertaker
+of them wages unusually high as compared with the amount of capital
+employed in them. Apothecaries, for instance, are called in some places
+"ninety-niners," because it is said that they earn 99 per cent. To discover
+the error, it would be sufficient to inquire the rate of interest on the
+capital borrowed by the apothecary on hypothecation, for instance, to
+enlarge his industry. But on the other hand, such a man who has more than
+any other manufacturer to do with the most delicate materials and with them
+in greater variety, requires proportionately greater caution and knowledge.
+Besides, as the guardian of the health and life of so many, and even as the
+comptroller of physicians, he should be a man who inspired universal and
+unqualified confidence.<a name="fnanchor_179-7" id="fnanchor_179-7"></a><a
+href="#footnote_179-7" class="fnanchor">[179-7]</a> By the rate of interest
+customary in a country, we mean the average rate of the interest on
+money-capital employed safely and without trouble.</p>
+
+ <p class="footnote"> <a name="footnote_179-1" id="footnote_179-1"></a>
+ <a href="#fnanchor_179-1">[179-1]</a>
+ In the case of fixed capital, we generally speak of rent; in the case of
+ circulating capital, of interest. If interest be conceived as a fractional
+ part of the capital itself, the relation between the two is called "the
+ rate of interest," most generally expressed as a percentage, and for one
+ year.</p>
+
+ <p class="footnote"> <a name="footnote_179-2" id="footnote_179-2"></a>
+ <a href="#fnanchor_179-2">[179-2]</a>
+ In Russia, great depreciation of the assignats, and yet the people
+ complained of a "want of money." (<i>Storch</i>, Handbuch, II, 15.)
+ According to the San Francisco correspondent of the Times, Jan. 31, 1850,
+ one per cent. a day discount was paid there! Compare <i>North</i>,
+ Discourse on Trade, 11 seq.</p>
+
+ <p class="footnote"> <a name="footnote_179-3" id="footnote_179-3"></a>
+ <a href="#fnanchor_179-3">[179-3]</a>
+ Gross interest and net interest corresponding to the difference between
+ gross product and net product.</p>
+
+ <p class="footnote"> <a name="footnote_179-4" id="footnote_179-4"></a>
+ <a href="#fnanchor_179-4">[179-4]</a>
+ This is the natural rent of capital in contradistinction to the stipulated
+ rent. (<i>Rau</i>, Lehrbuch, I, § 223.)</p>
+
+ <p class="footnote"> <a name="footnote_179-5" id="footnote_179-5"></a>
+ <a href="#fnanchor_179-5">[179-5]</a>
+ Thus, for instance, a so-called beginner who is conscious of possessing
+ great working capacity, but who possesses for the time being little
+ credit. <i>Tooke</i>, Considerations on the State of the Currency, 1826,
+ distinguishes three kinds of capitalists: a, those who are averse to
+ running any risk whatever or incurring any trouble, or are not able to
+ incur any risk or trouble, for whom every great increase of the sinking
+ fund lowers the rate of interest, and every war loan raises it; b, those
+ who will run no risk, but who are not averse to the trouble of looking
+ after their investments and of endeavoring to obtain a higher rate of
+ interest; c, such as, to obtain a higher rate of interest, unhesitatingly
+ risk something. Borrowers he divides thus: a, those who employ the
+ borrowed capital and their own in such a way as to enable them to meet
+ their obligations and besides to earn a reasonable profit; b, those who
+ need others' capital to make up for the momentary failure of the
+ productiveness of their own; lastly c, unproductive consumers.</p>
+
+ <p class="footnote"> <a name="footnote_179-6" id="footnote_179-6"></a>
+ <a href="#fnanchor_179-6">[179-6]</a>
+ Wealth of Nat., I, ch. 9. The gross product of English cotton industry
+ was, in 1832, estimated at £32,000,000, viz: £8,000,000 worth of material,
+ £20,000,000 wages, £2,000,000 interest, £2,000,000 undertaker's profits.
+ (<i>Schön</i>, Nat. Oek, 104.)</p>
+
+ <p class="footnote"> <a name="footnote_179-7" id="footnote_179-7"></a>
+ <a href="#fnanchor_179-7">[179-7]</a>
+ <i>Adam Smith</i>, I, ch. 10, 1: where the reasons why a shop-keeper in a
+ small town apparently gets a larger interest than one in a large city, and
+ yet gets rich less frequently, are developed. The high profit made from
+ industrial secrets, Adam Smith very correctly considers wages (I, ch. 7).
+ Why not also that made by inn-keepers? (I, ch. 10, 1.) When the returns of
+ a business differ according to circumstances which depend on the person of
+ the conductor of the business himself, and may by him be transferred into
+ another business, etc.; when the competition in it is determined by
+ personal agreeableness or disagreeableness, it is evident that the larger
+ returns are to be ascribed rather to the highness of wages than of the
+ rate of interest. The profit also which a second-hand hirer makes is
+ wages. (<i>Riedel</i>, Nat. Oek., 376.)</p>
+
+<p class="p2 center"><a name="S180"></a>SECTION CLXXX.</p>
+
+<p class="center smaller">RATE OF INTEREST IN GENERAL.&mdash;ITS LEVEL.</p>
+
+<p>Within the limits of the same national-economic territory, the different
+employments of capital tend uniformly to pay the <span class='pagenum'>[Pg
+100]</span> same rate of interest.<a name="fnanchor_180-1"
+id="fnanchor_180-1"></a><a href="#footnote_180-1" class=
+"fnanchor">[180-1]</a> If one branch of business were much more profitable
+than another, it would be to the interest of the owners of capital to allow
+it to flow into the former and out of the latter, until a level was
+reached.<a name="fnanchor_180-2" id="fnanchor_180-2"></a><a href=
+"#footnote_180-2" class="fnanchor">[180-2]</a></p>
+
+<p>The most noticeable exception to this rule is only an apparent one. The
+revenue (<i>Nutzung</i>) derived from the use of capital must not be
+confounded with its partial restoration.<a name="fnanchor_180-3"
+id="fnanchor_180-3"></a><a href="#footnote_180-3" class=
+"fnanchor">[180-3]</a> Thus, for instance, the rent of a house, if the
+entire capital is not to be sooner or later consumed entirely, must
+embrace, besides a payment for the use of the house, a sum sufficient to
+defray the expenses of repairing it, and even to effect a gradual
+accumulation of capital for the purpose of rebuilding. The risk attending
+the investment of capital plays a very large part and must be taken into
+special consideration. If the risk in a business be so great that ten who
+engage in it succeed and ten fail, the returns of the former, which are
+more than double those usual in the country, in reality pay, when the ten
+who failed are taken into the account, only the rate of interest customary
+in the country. The risk may depend on the uncertainty of the person to
+whom the capital is confided;<a name= "fnanchor_180-4" id=
+"fnanchor_180-4"></a><a href= "#footnote_180-4" class=
+"fnanchor">[180-4]</a> on the uncertainty of the branch of business in
+which it is intended to employ it,<a name="fnanchor_180-5"
+id="fnanchor_180-5"></a><a href= "#footnote_180-5" class=
+"fnanchor">[180-5]</a> or on the uncertainty of the commercial <span
+class='pagenum'>[Pg 101]</span> situation in general; but especially may it
+depend on the uncertainty of the laws.<a name="fnanchor_180-6"
+id="fnanchor_180-6"></a><a href="#footnote_180-6" class=
+"fnanchor">[180-6]</a> The temporary lying idle of capital, for instance,
+in dwelling houses at bathing places during the winter season, increases
+the rate of interest much more than it does the rate of wages in the
+corresponding case of the lying idle of labor; for the reason that there is
+something pleasurable in the repose of the latter. (<i>Senior.</i>) On the
+whole, the vanity of mankind has an effect upon the rate of interest
+similar to that which it has on the rate of wages. (See § 168.) It causes
+the small chances of loss to be estimated below their real value, and the
+extraordinary chances of gain above it.<a name= "fnanchor_180-7"
+id="fnanchor_180-7"></a><a href="#footnote_180-7"
+class="fnanchor">[180-7]</a></p>
+
+ <p class="footnote"> <a name="footnote_180-1" id="footnote_180-1"></a>
+ <a href="#fnanchor_180-1">[180-1]</a>
+ Compare <i>Harris</i>, Essay on Money and Coins, 13. <i>Per contra,
+ Ganilh</i>, Dictionnaire analyt., 107. According to <i>Hermann</i>,
+ Staatsw. Untersuchungen, 147, a product which withdraws an amount of
+ capital = <i>a</i> from the immediate use of its owner for <i>n</i> months
+ must bring in in its price a surplus, over and above the outlay of
+ capital, which would bear the same ratio to the profit from another
+ product which employed an amount of capital = <i>b</i>, <i>m</i> months,
+ that <i>an</i> bears to <i>bm</i>.</p>
+
+ <p class="footnote"> <a name="footnote_180-2" id="footnote_180-2"></a>
+ <a href="#fnanchor_180-2">[180-2]</a>
+ The class of bankers, etc. which precisely in the higher stages of
+ civilization is one so highly developed, is called upon to adjust these
+ differences.</p>
+
+ <p class="footnote"> <a name="footnote_180-3" id="footnote_180-3"></a>
+ <a href="#fnanchor_180-3">[180-3]</a>
+ Life annuities and annual revenues, <i>à fonds perdu</i>.</p>
+
+ <p class="footnote"> <a name="footnote_180-4" id="footnote_180-4"></a>
+ <a href="#fnanchor_180-4">[180-4]</a>
+ Hence, for instance, good men engaged in industrial pursuits who employ
+ borrowed capital productively pay lower interest than idlers who are
+ suspected of desiring only to spend it in dissipation. High house-rent
+ usually paid by proletarians.</p>
+
+ <p class="footnote"> <a name="footnote_180-5" id="footnote_180-5"></a>
+ <a href="#fnanchor_180-5">[180-5]</a>
+ Thus even in <i>Anderson's</i> time, it was necessary that the profit of
+ one good year in the whale fishery should compensate for the damage caused
+ by six bad ones. (Origin of Commerce, III, 184.) Slave-traders made their
+ calculations to lose from three to four out of five expeditions.
+ (Athenæum, May 6, 1848) Similarly in smuggling and contraband. High rate
+ of interest in gross adventure trade and bottomry contracts, frequently 30
+ and even 50 per cent.; in ancient Athens, for a simple voyage to the Black
+ Sea, 36 per cent., while the rate of interest customary in the country was
+ only from 12 to 18 per cent.; the interest paid by rented houses only
+ 8-1/7, and by land leases only 8 per cent. (<i>Bockh</i>, Staatshaushalt
+ der Athener, I, 175 ff.; <i>Isaeus de Hagn.</i>, Hered., 293) In Rome,
+ before Justinian's time, maritime interest was unlimited.
+ (<i>Hudtwalker</i>, De Foenore nautico Romano, 1810.) And so in the
+ manufacture of powder, the frequent explosion of the mills has to be taken
+ into account: in France and Austria, 16 per cent. per annum.
+ (<i>Hermann</i>, Principien, 119.) Here belong those new enterprises
+ which, when they succeed, pay a high profit. <i>Thaer</i>, in reference to
+ this insurance premium, says: if the capital employed to purchase a landed
+ estate yields 4 per cent., the inventory (<i>Inventar</i>) should bring in
+ at least 6, and the working capital 12 per cent. (Ration.
+ Landwirthschaft.)</p>
+
+ <p class="footnote"> <a name="footnote_180-6" id="footnote_180-6"></a>
+ <a href="#fnanchor_180-6">[180-6]</a>
+ Compare <i>supra</i>, § 91; <i>infra</i>, §§ 184, 188.</p>
+
+ <p class="footnote"> <a name="footnote_180-7" id="footnote_180-7"></a>
+ <a href="#fnanchor_180-7">[180-7]</a>
+ Thus <i>Friedr. Perthes</i>, in <i>Politz</i>, Jarhbüchern, Jan., 1829,
+ 42, thinks that the publication of scientific books in Germany, since
+ 1800, caused, on the whole, a loss of capital. In the Canadian lumber
+ trade, also, speculators, in the aggregate, lost more than was gained. Yet
+ the business goes on because of its lottery character. (<i>John Stuart
+ Mill</i>, II, ch. 15, 4.) In lotteries, it is certain that the aggregate
+ of players lose. So too in speculation in English stocks, on account of
+ the costs to be paid the state. In the case of frightful losses, which may
+ afford food for the imagination, the reverse is found. Thus, for instance,
+ in England, fire insurance, stamp duties included, was paid for at a rate
+ five times as high as mathematical calculation showed it to be worth.
+ (<i>Senior</i>, Outlines, 212 ff.) Much here depends naturally on national
+ character, which, in England for instance, or in the United States, is
+ much more adventurous than in many quiet regions of continental
+ Europe.</p>
+
+<p class="p2 center"><a name="S181"></a>SECTION CLXXXI.<span
+class='pagenum'>[Pg 102]</span></p>
+
+<p class="center smaller">RULE OF INTEREST IN GENERAL.&mdash;CAUSES OF
+DIFFERENT RATES.</p>
+
+<p>The real exceptions to the above rules are caused by a prevention of the
+leveling influx and outflow of capital. Among nations in a low stage of
+civilization, there is wont to be a multitude of legal impediments in this
+respect. The existence of a difference of classes, of privileged
+corporations, etc., not only restrains the transition of workmen, but also
+of capital from one branch of industry to another. But even the mere
+routine of capitalists, that blind distrust of everything new so frequently
+characteristic of easily contented men, may produce the same result.<a
+name="fnanchor_181-1" id="fnanchor_181-1"></a><a href="#footnote_181-1"
+class="fnanchor">[181-1]</a> In the higher stages of civilization, patents
+for inventions and bank privileges, are causes of a lastingly higher rate
+of interest than is usual in the country.<a name="fnanchor_181-2"
+id="fnanchor_181-2"></a><a href="#footnote_181-2" class=
+"fnanchor">[181-2]</a> Finally, since in many enterprises only a large
+amount of capital can be used at all, or at least with most advantage, the
+aggregation of which from many small sources is ordinarily much more
+difficult than the division of a large one into small fractional parts; the
+rate of interest for very small amounts of capital, and especially in the
+higher stages of civilization, is usually lower than that of large amounts
+of capital. We need only mention interest paid by savings-bank
+investments.<a name="fnanchor_181-3" id= "fnanchor_181-3"></a><a
+href="#footnote_181-3" class= "fnanchor">[181-3]</a></p>
+
+<p>If circulating capital has been changed into fixed capital, its yield
+will depend upon the price of the particular goods in the production of
+which it has been made to serve. Compared <span class='pagenum'>[Pg
+103]</span> with the cost of restoration of fixed capital, this yield may,
+in a favorable case, constitute an extraordinarily high rate of interest,
+in an unfavorable a very low one; and the former of these two extremes has
+a greater chance of being realized, in proportion as it is difficult to
+multiply fixed capital of the same kind; the latter, the more exclusively
+it can be employed in only one kind of production, and the longer time it
+takes to be used up by wear.<a name="fnanchor_181-4" id=
+"fnanchor_181-4"></a><a href="#footnote_181-4" class=
+"fnanchor">[181-4]</a> When fixed and circulating capital coöperate in
+production, the latter, because it can be more easily withdrawn, but also
+more easily replaced, first takes out its own profit, that is the profit
+usual in the country and leaves all the rest to the former. When fixed
+capital is sold, practically no attention is paid to what it originally
+cost. The purchaser pays only for the prospective revenue it will yield,
+which he capitalizes at the rate of interest usual in the country. The
+seller henceforth looks <span class='pagenum'>[Pg 104]</span> upon his gain
+as an accretion to capital, his loss as a diminution of capital, and no
+longer as high or low interest.<a name="fnanchor_181-5" id=
+"fnanchor_181-5"></a><a href="#footnote_181-5" class=
+"fnanchor">[181-5]</a> That accretion might be considered the wages, paid
+once for all, for the intelligent labor which governed the original
+investment of the capital, and <i>vice versa</i>.</p>
+
+ <p class="footnote"> <a name="footnote_181-1" id="footnote_181-1"></a>
+ <a href="#fnanchor_181-1">[181-1]</a>
+ Thus the rate of interest in the Schappach valley remained for a long time
+ much lower than in the vicinity, for the reason that the peasantry who had
+ grown rich through the lumber trade possessed notwithstanding little of
+ the spirit of enterprise. (<i>Rau</i>, Lehrbuch, I, § 233.)</p>
+
+ <p class="footnote"> <a name="footnote_181-2" id="footnote_181-2"></a>
+ <a href="#fnanchor_181-2">[181-2]</a>
+ Here the law produces a species of artificial fixation.</p>
+
+ <p class="footnote"> <a name="footnote_181-3" id="footnote_181-3"></a>
+ <a href="#fnanchor_181-3">[181-3]</a>
+ <i>Von Mangoldt</i>, Unternehmergewinn, 150.</p>
+
+ <p class="footnote"> <a name="footnote_181-4" id="footnote_181-4"></a>
+ <a href="#fnanchor_181-4">[181-4]</a>
+ In other words, the more fixed they are. Thus, for instance, dwelling
+ houses in declining cities, canals, etc. which have been supplanted by
+ better commercial routes; or again, the shafts and stulms of a mine which
+ has been abandoned. When Versailles ceased to be a royal residence, the
+ value of inhabited houses sank to one-fourth of what it had been.
+ (<i>Zinkeisen</i> in <i>Raumer's</i> histor. Taschenbuch, 1837, 426.) A
+ rate of interest greater than that usual in a country is seldom found
+ where freedom of competition prevails, since it is necessary there to
+ distinguish between rent and interest on capital. When in an open city,
+ the capital employed in the construction of dwelling houses <i>detractis
+ detrahendis</i> pays 8 per cent., while the rate of interest customary in
+ the country is only 4 per cent., the supply of houses will grow
+ continually greater. Only the difficulties in the way of transferring
+ capital from one business to another could here retard the leveling
+ process, which where the political prospect for instance was bad, might
+ last a long time&mdash;one of the principal reasons why, in 1848, the rent
+ of houses declined much less than their purchase prices. The conjuncture
+ was not serious enough to prevent the increase of population; but it
+ entirely stopped the building of new houses. On the other hand, a bridge
+ or railroad company may maintain a high rate of profit because competition
+ cannot exist in the face of the great expense such enterprises require;
+ but especially because the party who has here the advantage of priority
+ may lower the price of transportation to such a point as to entirely
+ discourage his rival. Compare <i>Hermann</i>, Staatsw. Untersuchungen, 145
+ ff. Interesting example of the London gas and water companies in
+ <i>Senior</i>, Outlines, 101.</p>
+
+ <p class="footnote"> <a name="footnote_181-5" id="footnote_181-5"></a>
+ <a href="#fnanchor_181-5">[181-5]</a>
+ Thus, for instance, Leipzig-Dresden railroad stock cost originally 100
+ thalers per share, and was taken at that rate. The yearly dividends
+ amounted in 1856 to 13 thalers; that is, 13 per cent. for the original
+ stockholders. But a person who on the 30th September, 1856, paid 285
+ thalers for a share, received but an interest of 4½ per cent. on his
+ capital. It is characteristic, how <i>Serra</i>, Sulle Cause, etc., 1613,
+ I, 9, calls the high and the low rate of interest <i>prezzo basso e alto
+ delle entrate</i>.</p>
+
+<p class="p2 center"><a name="S182"></a>SECTION CLXXXII.</p>
+
+<p class="center smaller">VARIATIONS OF THE RATE OF DISCOUNT.</p>
+
+<p>The fact that in commerce, etc., the rate of interest on capital loaned
+for short periods of time (discount) is subject to great fluctuations,
+while the mortgage rate of interest, for instance, remains the same
+throughout, depends on similar causes.<a name="fnanchor_182-1"
+id="fnanchor_182-1"></a><a href="#footnote_182-1" class=
+"fnanchor">[182-1]</a> Yet there are contingencies in trade which, when
+taken immediate advantage of, promise enormous profits, but <span
+class='pagenum'>[Pg 105]</span> which may disappear within a month; risks
+of the most dangerous kind which can be conjured only by the immediate aid
+of capital. These are both sufficient grounds of a high rate of interest.
+Again, there are times of the profoundest calm in the commercial world,
+during which capitalists are perfectly willing to make loans at a low rate
+of interest, provided they are sure to be able to get back their capital
+with the first favorable breeze that blows. Agriculture is too immovable to
+come opportunely to the assistance of capitalists, here as a receiver and
+there as a loaner of capital. As the cycle of its operations is gone
+through usually only in a series of years, sudden influxes or outflows of
+capital would cause it the greatest injury.<a name= "fnanchor_182-2" id=
+"fnanchor_182-2"></a><a href= "#footnote_182-2" class=
+"fnanchor">[182-2]</a></p>
+
+ <p class="footnote"> <a name="footnote_182-1" id="footnote_182-1"></a>
+ <a href="#fnanchor_182-1">[182-1]</a>
+ <i>Nebenius</i>, Oeff. Credit, I, 74 ff. Thus, Hamburg discount towards
+ the end of the last century fluctuated between 2½ and 12 per cent., while
+ the capital invested in agriculture brought an interest almost invariably
+ of 4 per cent. (<i>Büsch</i>, Geldumlauf, VI, 4, 19.) At the same time, in
+ Pennsylvania, the usual rate of interest was 6 per cent. per annum, and
+ the rate of discount not unfrequently from 2 to 3 per cent. a month.
+ (<i>Ebeling</i> Geschichte und Erdbeschreib. von Amerika, IV, 442.) During
+ the crisis of 1837, it happened that ¼ per cent. a day was paid.
+ (<i>Rau</i>, Archiv. N. F. IV, 382.) In the Prussian ports, during the
+ crisis of 1810, it is said that in July the rate of discount was 2½ per
+ cent. a month. (<i>Tooke</i>, Thoughts and Details, I, 111.) In Hamburg
+ and Frankfort the rate of discount rose in the spring of 1848, but
+ declined in June to 2; until December it was 1¼, until the summer of 1849,
+ ¾ per cent. (Tüb. Zeitschr., 1856, 95.) Rate of discount in France, about
+ 1798, at least 2 per cent. a month. (<i>Büsch</i>, loc. cit., IV, 52.)
+ Half a year previous, capital employed in the purchase of land paid an
+ interest of from 3 to 4 per cent. Legal interest was 5 per cent.;
+ discount, at most, 6 per cent.; in very prosperous times 8-9, per cent.
+ (<i>Forbonnais</i>, Recherches et Considérations, I, 372.)</p>
+
+ <p class="footnote"> <a name="footnote_182-2" id="footnote_182-2"></a>
+ <a href="#fnanchor_182-2">[182-2]</a>
+ Remarkable case in <i>Cicero's</i> time in which bribery, carried on on a
+ large scale, raised the rate of discount from 4 to 8 per cent.
+ <i>Cicero</i> ad. Quint. M, 15; ad. Att. IV, 15.</p>
+
+<p class="p2 center"><a name="S183"></a>SECTION CLXXXIII.</p>
+
+<p class="center smaller">EFFECT OF INCREASED DEMAND FOR LOANS.</p>
+
+<p>The price paid for the use of capital naturally depends on the relation
+between the supply and demand, and especially of circulating capital. The
+increase of the supply need no more unconditionally lower the rate of
+interest than the price of any other commodity. If 50 hunters kill 1,000
+deer yearly, and give 100 deer per annum as interest to the capitalists who
+provided them with ammunition and rifles, a second capitalist with an equal
+number of rifles and an equal amount of ammunition may appear on the scene.
+If now 2,000 deer a year are killed, the rate of profit of the capitalists
+will probably remain the same. But if the woods are not rich enough in game
+for this, or the hunters not numerous enough, too indolent, or too easily
+satisfied, the rate of interest falls.<a name= "fnanchor_183-1" id=
+"fnanchor_183-1"></a><a href="#footnote_183-1" class=
+"fnanchor">[183-1]</a></p>
+
+<p><span class='pagenum'>[Pg 106]</span>The difficulties in the way of the
+desired increase of capital are here of great importance. The smaller the
+surplus over and above their absolutely necessary wants, which the people
+produce, the less their tendency to make savings, the less the inclination
+to capitalization; and the less the security afforded by the law is, the
+higher must the rate of interest be to induce people to face these
+difficulties. We may very well transfer the idea of cost of production to
+this condition.<a name="fnanchor_183-2" id="fnanchor_183-2"></a><a
+href="#footnote_183-2" class="fnanchor">[183-2]</a></p>
+
+<p>The demand for capital depends, on the one hand, on the number and the
+solvability of borrowers, especially of non-capitalists like landowners and
+workmen; and, on the other hand, on the value in use of the capital itself.
+Hence the growth of population is, other circumstances being the same, a
+means to raise the rate of interest; because it infallibly increases the
+competition of borrowers of capital, even if the increased rate must take
+place at the expense of wages. The solvability or paying capacity of the
+land-owning class as contrasted with the capitalists can, in the last
+analysis, depend only on the extent and fertility of their lands and on the
+quality of their agricultural husbandry; the solvability or paying capacity
+of the working class, only on their skill and industry. Where these have
+grown, an increase of the rate of interest may be found in connection with
+an absolute growth of the rate of wages and of rent, because the aggregate
+income of the nation has become greater.</p>
+
+<p>The value in use of capital, which is more homogeneous in proportion as
+it has the character of circulating capital (<i>res fungibiles</i>) is, in
+most instances, synonymous with the skill of the working class, and the
+richness of the natural forces connected with it. The deciding element,
+therefore, is the yield of the least productive investment of capital which
+must be made to employ all the capital seeking employment. This least
+productive employment of capital must <span class='pagenum'>[Pg 107]</span>
+determine the rate of interest customary in a country precisely as cost of
+production on the most unfavorable land determines the price of corn (§§
+110, 150), and as the result of the work of the laborer last employed does
+the rate of wages. (§ 165.)</p>
+
+<p>What portion of the total national income, after deduction is made of
+rent, shall go to the capitalists and what portion to the working class,
+will depend mainly on whether the capitalists compete more greedily for
+labor or the laboring classes for capital.<a name="fnanchor_183-3"
+id="fnanchor_183-3"></a><a href="#footnote_183-3" class=
+"fnanchor">[183-3]</a> If, for instance, capital should increase more
+rapidly than population, there must be a relative increase in wages, and
+<i>vice versa</i>.<a name="fnanchor_183-4" id="fnanchor_183-4"></a><a
+href="#footnote_183-4" class="fnanchor">[183-4]</a> This is true especially
+of that peculiar <span class='pagenum'>[Pg 108]</span> kind of higher wages
+which we shall (§ 145, ff.) designate as the "undertaker's profit." The
+smaller the number of persons engaged in enterprises is, in comparison with
+the number of retired persons who live on their rents, incomes, etc., the
+smaller is the portion of the so-called net profit of enterprise the latter
+must be satisfied with in the shape of interest.<a name="fnanchor_183-5"
+id="fnanchor_183-5"></a><a href="#footnote_183-5" class=
+"fnanchor">[183-5]</a></p>
+
+ <p class="footnote"> <a name="footnote_183-1" id="footnote_183-1"></a>
+ <a href="#fnanchor_183-1">[183-1]</a>
+ It is one of <i>Ricardo's</i> (Principles, ch. 21) chief merits, that he
+ demonstrated the groundlessness of the opinion that the mere increase of
+ capital must, on account of the competition of capitalists, lower the rate
+ of interest, as is assumed by <i>Adam Smith</i>, I, ch. 9, <i>J. B.
+ Say</i>, Traité, II, 8, and others. Compare also, <i>John Stuart Mill</i>,
+ Principles, IV, ch. IV, 1.</p>
+
+ <p class="footnote"> <a name="footnote_183-2" id="footnote_183-2"></a>
+ <a href="#fnanchor_183-2">[183-2]</a>
+ <i>Storch</i>, Handbuch, II, 20.</p>
+
+ <p class="footnote"> <a name="footnote_183-3" id="footnote_183-3"></a>
+ <a href="#fnanchor_183-3">[183-3]</a>
+ Frequent withdrawals of capital must, other circumstances being the same,
+ temporarily raise the rate of interest. In the long run, however, the
+ question is decided by this: whether public opinion considers labor a
+ greater sacrifice than the saving of capital. Compare <i>Roesler</i>, loc.
+ cit., 8.</p>
+
+ <p class="footnote"> <a name="footnote_183-4" id="footnote_183-4"></a>
+ <a href="#fnanchor_183-4">[183-4]</a>
+ Compare <i>Hermann</i>, Staatsw. Unters., 240 ff. Very much depends on
+ whether the new increased consumption (of workmen when wages are rising,
+ of capitalists when wages are declining) is of goods which are mainly the
+ product of large capital, large factories, etc., or chiefly of common
+ labor, (<i>von Mangoldt</i>, Grundriss, 155 seq.) When <i>Adam Smith</i>
+ suggests that the relation between wages and the profit of capital is
+ determined by this: whether there is a market demand for more work or more
+ commodities, for more "work to be done" or "work done" (I, ch. 7), he is,
+ spite of appearances, very unsatisfactory. <i>Malthus</i> distinguishes a
+ restrictive principle of the rate of interest, viz.: the return made to
+ the least productive agricultural capital, and a regulative one, viz.: the
+ reciprocal relation between demand and supply of capital and labor.
+ (Principles, ch. 5, sec. 4.) <i>Ricardo</i>, ch. 6, makes the profit of
+ capital at all times and in every country depend on the quantity of labor
+ which it is necessary to expend on the land which pays no rent, in order
+ to satisfy the wants of workmen&mdash;a very correct theory.</p>
+
+ <p class="footnote">Only <i>Ricardo</i> himself (ch. 21) and his school
+ postulate altogether too unconditionally that their wants would always
+ coincide with the minimum of maintenance or support. Thus, for instance,
+ <i>J. S. Mill</i>, Principles, IV, ch. 3, 4. However, <i>Mill</i> instead
+ of <i>Ricardo's</i> "wages" employs the better expression, "cost of
+ labor." <i>Senior</i> teaches that the distribution of the aggregate
+ result between laborers and capitalists depends on the anterior course of
+ both classes: on the value of the capital previously employed by
+ capitalists to produce the means of satisfying working men's wants, and on
+ the number of workmen which the previous laboring population have brought
+ into existence. (Outlines, 188 ff.) Concerning <i>von Thünen's</i> vain
+ attempt at a general formula, see <i>supra</i>, § 173. <i>Fourier's</i>
+ idea that 5/12<a name= "fnanchor_TN19" id= "fnanchor_TN19"></a><a href=
+ "#footnote_TN19" class= "fnanchor">[TN 19]</a> of the product should be
+ distributed among labor, 3/12 among talent, and 4/12 among capital, is
+ entirely baseless. (N. Monde, 309 ff.) <i>Considérant</i>, Destinée
+ sociale, 192 ff. As early a writer as <i>H. Boden</i>, Fürstliche
+ Machtkunst, 1700 and 1740, 42, came strikingly near the truth. According
+ to him, a low rate of interest is produced by four circumstances: surplus
+ capital, a dearth of landed estates, a want of credit and exact justice,
+ and lastly, the heavy taxation of capital.</p>
+
+ <p class="footnote"> <a name="footnote_183-5" id="footnote_183-5"></a>
+ <a href="#fnanchor_183-5">[183-5]</a>
+ Thus, in the last century, Spanish capitalists loaned capital readily to
+ sure commercial companies, at from 2 to 3 per cent. per annum.
+ (<i>Bourgoing,</i> Tableau de l'Espagne, I, 248.) The contemporary low
+ rates of interest in Hannover, <i>Büsch</i>, Geldumlauf, VI, 4, 12,
+ endeavors to explain by the absence of opportunities for investment, as no
+ one dared to loan to any extent on fiefs or on the land of the peasantry,
+ and because there was no law governing bills of exchange, etc.</p>
+
+<p class="p2 center"><a name="S184"></a>SECTION CLXXXIV.</p>
+
+<p class="center smaller">HISTORY OF THE RATE OF INTEREST.</p>
+
+<p>Among barbarous nations, the loaning of capital is wont to happen so
+seldom, and to be limited so strictly to near relations, that it does not
+yet occur to any one to stipulate for a regular compensation therefor.<a
+name="fnanchor_184-1" id="fnanchor_184-1"></a><a href="#footnote_184-1"
+class="fnanchor">[184-1]</a> But, however, when they pass from this state
+to interest proper, the rate must be, of course, very high.<a
+name="fnanchor_184-2" id="fnanchor_184-2"></a><a href="#footnote_184-2"
+class="fnanchor">[184-2]</a> The premium for insurance is here very <span
+class='pagenum'>[Pg 109]</span> great, the possibility and inclination to
+accumulate capital exceedingly small. Even of the existing supply of
+capital, a <span class='pagenum'>[Pg 110]</span> great part remains idle,
+because the faculty and the institutions necessary to concentrate it and
+permit it to flow are wanting. (§ 43.) The unskillfulness of labor is more
+than overcome by the excess of fertile and naturally productive land, of
+rich sites still unoccupied, the cream of which, as it were, needs only to
+be culled. Population is indeed sparse, but the usually prevailing absence
+of freedom of the lower classes prevents wages claiming the full benefit of
+competition.<a name="fnanchor_184-3" id="fnanchor_184-3"></a><a
+href="#footnote_184-3" class="fnanchor">[184-3]</a> This last circumstance
+is especially important.<a name="fnanchor_184-4" id="fnanchor_184-4"></a><a
+href="#footnote_184-4" class="fnanchor">[184-4]</a> For a given amount of
+the national income and of rent, every depression of wages must obviously
+raise the rate of interest, and every enhancement of wages lower it.<a
+name="fnanchor_184-5" id="fnanchor_184-5"></a><a href="#footnote_184-5"
+class="fnanchor">[184-5]</a></p>
+
+ <p class="footnote"> <a name="footnote_184-1" id="footnote_184-1"></a>
+ <a href="#fnanchor_184-1">[184-1]</a>
+ <i>Tacit.</i>, Germ., 26; <i>Marculf</i>, Form., 18, 25 ff., 35;
+ <i>Savigny</i>, Ueber das altrömische Schuldrecht, in the transactions of
+ the Berlin Academy, 1833, 78 seq.</p>
+
+ <p class="footnote"> <a name="footnote_184-2" id="footnote_184-2"></a>
+ <a href="#fnanchor_184-2">[184-2]</a>
+ According to the Lex Visig., V, 5, § 8, the maximum rate of interest
+ allowed on loans of money was 12½ per cent., and on other <i>res
+ fungibiles</i>, 50 per cent. From the 12th to the 14th century, the
+ Lombards and the Jews in France and England took generally (?) 20 per
+ cent. a year. (<i>Anderson</i>, Origin of Commerce, <i>a.</i>, 1300.)
+ Philip V. of France, in 1311, fixed the rate of interest at the fairs in
+ Champagne at 15 per cent. (a species of discount) at most, and at a
+ maximum everywhere of 20 per cent. (Ordonnances de la France, I, 484, 494,
+ 508.) The legal rate of interest in Verona, in 1288, was fixed at a
+ maximum of 12½ per cent.; in Modena, 1270, at 20 per cent.
+ (<i>Muratori</i>, Antiquitt. Ital., I, 894); in Bresica, 1268, at 10 per
+ cent. (<i>v. Raumer</i>, Geschichte der Hohenstaufen, V, 395 ff.)
+ Frederick II. wished to reduce it to 10 per cent. for Naples, but failed.
+ (<i>Bianchini</i>, Storia delle Finanze di Nap., I, 299.) The tables of
+ <i>Cibrario</i>, Economia polit. del medio Evo., III, 380, for 1306-1399,
+ show for upper Italy interest to have been at 20, 15, 14, 10, and also 5½
+ per cent. About 1430 the Florentines, in order to moderate the enormously
+ high rate of interest, called Jews to their city, and the latter promised
+ not to charge over 20 per cent. (<i>Cibrario</i>, III, 318.) In the Rhine
+ country, the Kowerzens, during the 14th century, took from 60 to 70 per
+ cent., for which they had, however, to pay a heavy tax to the archbishop.
+ (<i>Bodmann</i>, Rh. Alterthümer, 716.) Of Jewish maximum rates of
+ interest, in the 14th and 15th centuries, see <i>Stobbe</i>, Juden in
+ Deutschland während des M. Alters, 103, 110, 234 seq.; <i>Hegel</i>,
+ Strassb. Chr., II, 977, 984.</p>
+
+ <p class="footnote">The rate of interest usual in these countries must not
+ however be calculated from the data furnished by these usurious rates and
+ fixed rates of interest, simply. In Germany, the rate of interest promised
+ by princes in the 13th and 14th centuries was usually 10 per cent. The
+ Frankfort municipal loans made by Jews in the 14th century bore interest
+ at the rate of 9, 11-2/3, 13, 18, 26, and even 45 per cent.
+ (<i>Kriegk</i>, F.'s Bürgerzwiste, 343, 539.) The rate of interest in the
+ purchase of annuities continually declined between 1300 and 1500,
+ especially in the time of the emancipation of manual laborers. Old Base
+ documents give, between 1284 and 1580, as the highest rate, 11-3/9, and as
+ the least, 5 per cent. The latter became more and more usual later,
+ especially in the sale of house-rents (<i>Hauszins</i>), so that in 1841
+ all annuities (<i>Renten</i>) might be canceled by a payment of their
+ amounts multiplied by 20. Until the beginning of the 15th century, in the
+ city, the rule was 6 to 7 per cent.; outside of it, 8 to 10 per cent.
+ (<i>Arnold</i>, Geschichte des Eigenthums in den deutschen Städten, 222
+ seq., 227 seq.) According to the Bremen Jahrb. of 1784, 164 seq., the rate
+ of interest in the case of <i>Handfesten,</i> in 1295, = 10 per cent.,
+ gradually sank: in the 15th century it was never over 6-2/3; after 1450,
+ generally 5; in 1511 only 4 per cent. In 1441 ff., in Augsburg, people
+ were satisfied with a business profit of 7-2/3 per cent., while the usual
+ rate of interest paid by house-rent, etc. was 5 per cent. (<i>Hegel</i>,
+ Augsb. Chr., II, 134 seq., 157.) Handsome tables in the rate of interest
+ in the purchase of annuities for all Germany, from 1215 to 1620, give as
+ the rule, 7 to 10, scarcely ever over 15 per cent., in <i>M. Neumann</i>,
+ Geschichte des Wuchers, 266 ff. For the upper Rhine, compare <i>Mone's</i>
+ Zeitschr., 26 ff. Among the Fathers of the councils of Constance and Basil
+ 5 per cent. was considered equitable. Compare <i>F. Hammerlin</i>,
+ 1389-1457, De Emtione et Venditione unius pro viginti. Russian interest at
+ 40 per cent., according to the laws of Jaroslaw (ob. 1054 after Christ).
+ <i>Karamsin</i>, Russ. Gesch., II, 47.</p>
+
+ <p class="footnote"> <a name="footnote_184-3" id="footnote_184-3"></a>
+ <a href="#fnanchor_184-3">[184-3]</a>
+ The high rate of interest in many countries at present may be thus
+ accounted for. In the United States, during the last century, less than 8
+ per cent. was seldom paid. (<i>Ebeling</i>, III, 152.) According to <i>M.
+ Chevalier</i>, Lettres sur l'Amérique du Nord, 1836, I, 59, the rate of
+ interest in Pennsylvania was 6, in New York, 7, in most of the slave
+ states, 8-9; in Louisiana, 10 per cent. In South Australia (1850) it was,
+ with full security, 15-20 per cent. (<i>Reimer</i>, Südaustralien, 39.) In
+ the West Indies, about the end of the last century, a strong negro might
+ produce a revenue equal to one-fourth of his capital value. (<i>B.
+ Edwards</i>, History of the British West Indies, II, 129.) In Brazil, the
+ lowest rate of interest was at 9 per cent., and 12-18 per cent. was
+ nothing unusual. (<i>Wappäus</i>, M. and S. Amerika, 1871, 1413.) In Cuba,
+ for the government 10, for private parties, 12 to 16 per cent.
+ (<i>Humboldt</i>, Cuba, I, 231.) In Potosi, in 1826, Temple got 30 per
+ cent. interest on chattel mortgage, and from 2 to 4 per cent. a month was
+ offered, while the rate of interest in Buenos Ayres amounted to 15 per
+ cent. per annum. (<i>Temple</i>, Travels, II, 217.) In Russia,
+ <i>Storch</i>, Handbuch,<a name= "fnanchor_TN20" id= "fnanchor_TN20"></a><a
+ href= "#footnote_TN20" class= "fnanchor">[TN 20]</a> I, 262, speaks of
+ 8-10 per cent. According to <i>v. Haxthausen</i>, it was, in the interior,
+ never less than from 8 to 12 per cent. per annum; at Kiew and Odessa, 1¼,
+ 1½ and 2 per cent. per month. (Studien, I, 58, 467; II, 495.) In
+ <i>Greece</i>, the rate of interest on first mortgages is at least 10, on
+ a second, 15-18 per cent. (Ausland, 1843, No. 82.)</p>
+
+ <p class="footnote"> <a name="footnote_184-4" id="footnote_184-4"></a>
+ <a href="#fnanchor_184-4">[184-4]</a>
+ <i>Nebenius</i>, Oeff. Credit, I, 55.</p>
+
+ <p class="footnote"> <a name="footnote_184-5" id="footnote_184-5"></a>
+ <a href="#fnanchor_184-5">[184-5]</a>
+ Only in this particular instance is what <i>Ricardo</i> so frequently
+ insists on true, viz: that the rate of wages can be increased only at the
+ expense of the profit of capital, and <i>vice versa</i>.</p>
+
+<p class="p2 center"><a name="S185"></a>SECTION CLXXXV.<span
+class='pagenum'>[Pg 111]</span></p>
+
+<p class="center smaller">HISTORY OF THE RATE OF INTEREST.&mdash;INFLUENCE
+OF AN ADVANCE IN CIVILIZATION.</p>
+
+<p>With an advance in civilization, the rate of interest is wont to
+decline.<a name="fnanchor_185-1" id="fnanchor_185-1"></a><a
+href="#footnote_185-1" class="fnanchor">[185-1]</a> <a
+name="fnanchor_185-2" id= "fnanchor_185-2"></a><a href= "#footnote_185-2"
+class="fnanchor">[185-2]</a> One of the chief causes of this phenomenon is
+<span class='pagenum'>[Pg 112]</span> the necessity, as population and
+consumption increase, to employ capital in the fertilization of less
+productive land, and in less profitable investments.<a
+name="fnanchor_185-3" id="fnanchor_185-3"></a><a href="#footnote_185-3"
+class="fnanchor">[185-3]</a> An increase in the stock of money does not
+necessarily depreciate the rate of interest. If this increase comes in
+connection with a corresponding depreciation of the individual pieces of
+metal, it cannot be said that the nation has thereby become richer in
+capital. All that would be required in such case is only a greater number
+of pounds of gold or silver, or more paper bills to represent the same
+capital.<a name="fnanchor_185-4" id="fnanchor_185-4"></a><a
+href="#footnote_185-4" class="fnanchor">[185-4]</a> Only during the
+transition-period, during which the depreciation of money is still
+incomplete, is the rate of interest wont to be lowered; and all the more,
+since loaned capital is generally offered and sought after in the form of
+money.<a name="fnanchor_185-5" id="fnanchor_185-5"></a><a
+href="#footnote_185-5" class="fnanchor">[185-5]</a> <a name=
+"fnanchor_185-6" id="fnanchor_185-6"></a><a href="#footnote_185-6" class=
+"fnanchor">[185-6]</a></p> <p><span class='pagenum'>[Pg 113]</span></p>
+
+<p>The decline of the rate of interest generally shows itself earliest in
+the large cities, which are everywhere the national organ, in which the
+good and bad symptoms of later civilization may be soonest observed.<a
+name="fnanchor_185-7" id="fnanchor_185-7"></a><a href="#footnote_185-7"
+class="fnanchor">[185-7]</a></p>
+
+<p>Moreover, the condition of capitalists is not necessarily made worse by
+a decline of the rate of interest. It is possible that, for a long time,
+the increase of capital should continue more rapid than the decrease of
+interest for each individual. (If, indeed, the aggregate interest of
+capital should become absolutely smaller, there is always a pleasant remedy
+available, viz.: to consume a part of the capital!) But, however, a decline
+of the rate of interest is nearly always followed by increased activity on
+the part of capitalists; and they come to <span class='pagenum'>[Pg
+114]</span> the resolve to retire later to enjoy the results of their
+previous labors. In Holland, after the time of Louis XIV., no branch of
+business was wont to pay more than from two to three per cent. In the case
+of the purchase of land, no one calculated on more than two per cent. Hence
+it was scarcely possible for small capitalists there to live on their
+interest; and the good sense of the people so well adapted itself to this
+state of things that to live in leisure on one's rents was considered a not
+entirely honorable mode of existence.<a name="fnanchor_185-8"
+id="fnanchor_185-8"></a><a href="#footnote_185-8" class=
+"fnanchor">[185-8]</a> The lower the rate of interest, the larger, in
+highly civilized countries, is the stock on hand of cash apt to become, for
+the reason that business men then hope to gain more by the advantages of
+cash payments than by the saving of interest.<a name="fnanchor_185-9"
+id="fnanchor_185-9"></a> <a href="#footnote_185-9" class=
+"fnanchor">[185-9]</a><a name="fnanchor_185-10" id= "fnanchor_185-10"></a>
+<a href="#footnote_185-10" class= "fnanchor">[185-10]</a></p>
+
+ <p class="footnote"> <a name="footnote_185-1" id="footnote_185-1"></a>
+ <a href="#fnanchor_185-1">[185-1]</a>
+ <i>Proudhon's</i> idea, that this decline might at last bring about a
+ total abolition of interest, is based on the same error as this other:
+ that since a man may keep diminishing his per diem quantum of food, he
+ might finally dispense with food altogether. <i>Proudhon's</i> Banque du
+ Peuple&mdash;People's Bank&mdash;which, by gradually diminishing the
+ interest on its loans to the minimum cost of its administration, should
+ compel other capitalists to follow its example.</p>
+
+ <p class="footnote"> <a name="footnote_185-2" id="footnote_185-2"></a>
+ <a href="#fnanchor_185-2">[185-2]</a>
+ Thus, in England, by virtue of 37 Henry III., c. 9, the legal interest was
+ = 10 per cent.; by 21 James I, c. 17 = 8; about 1651 = 6 per cent.
+ (confirmed in 1660); by 12 Anne, ch. 16 = 5 per cent. In the time of
+ George II., where the security was good, only 3 per cent. was, as a rule,
+ paid. In France, the legal rate of interest, at the beginning of the 16th
+ century, was 1/10 of the capital; after 1657, 1/12; 1601 (<i>Sully</i>),
+ 1/16; 1634 (<i>Richelieu</i>), 1/18; 1665 (<i>Colbert</i>), 1/20. Compare
+ <i>Forbonnais</i> Recherches et Considérations, I, 48, 225, 385 ff. It
+ continued at this rate of 5 per cent. with short interruptions until the
+ revolution. (<i>Warnkönig</i>, Franz. Staats. und Rechtsgeschichte, II,
+ 588 seq.)</p>
+
+ <p class="footnote">The rates of interest in Russia, in the 16th century,
+ had already declined to 20 per cent. (<i>Herberstein</i>, Reise, 41 ff.;
+ <i>Karamsin</i>, Russ. Geschichte, VII, 169.) In Holland, in 1623, it was
+ estimated that land purchases paid 3 per cent.; hypothecations, 4 to 6;
+ deposits, 5 to 6; a flourishing business, 10 per cent. Compare
+ <i>Usselinx</i> in <i>Laspeyres</i>, Geschichte der volkswirthschaftl.
+ Anschauungen der Niederländer, 76. About 1660, the rate of interest usual
+ in Italy and Holland was at most 3 per cent. (in war times, 4); in France,
+ 7; in Scotland, 10; in Ireland, 12; in Spain, 10 to 12; in Turkey, 20 per
+ cent. (<i>Sir J. Child</i>, Discourse on Trade, French translation, 75
+ ff.) Side by side with 6 per cent. as the rate of interest in England, it
+ was (a little later) 10 in Ireland. <i>Petty</i>, Political Anatomy of
+ Ireland, 74.</p>
+
+ <p class="footnote">The same course of things is to be observed in ancient
+ times. In <i>Solon's</i> time, and again in that of <i>Lysias</i>, it was
+ 18 per cent. (<i>Böckh</i>, Staatshaushalt der Athener, I, 143 ff.) I am
+ of opinion that the rate of interest declined during this long interval,
+ but rose again in consequence of the Peloponnesian<a name="fnanchor_TN21"
+ id="fnanchor_TN21"></a><a href="#footnote_TN21" class="fnanchor">[TN
+ 21]</a> war. Among friends, in the time of <i>Demosthenes</i>, 10 per
+ cent. (adv. Onetor., I, 386.) <i>Aristotle</i>, Rhet., III, 10, mentions
+ 12 per cent., which <i>Aeschines</i>, adv. Ctes., 104, and
+ <i>Demosthenes</i>, adv. Aph., I, 820, 824, call low. The rate of
+ commercial interest in Egypt (146 before Christ) seems to have been 12 per
+ cent. per annum. (<i>Letronne</i>, Recompense promise à celui, etc., 1833,
+ 7.) Contemporaneously in Rome, a similar rate of interest must have been
+ considered usurious. (<i>Cicero</i>, ad. Att., I, 12.) Under the emperor
+ <i>Claudius</i>, 6 per cent. (<i>Columella</i>, De Re rust., III, 3.)
+ <i>Justinian</i> allowed <i>to personae illustres</i> 4 per cent. per
+ annum. (L. 26 Cod., IV, 32.)</p>
+
+ <p class="footnote"> <a name="footnote_185-3" id="footnote_185-3"></a>
+ <a href="#fnanchor_185-3">[185-3]</a>
+ A Huron with his bow and arrow kills 12 pieces of game; the European, with
+ a much better capital, his rifle, only 5. Compare <i>v. Schözer</i>,
+ Anfangsgründe, I, 28. <i>Mallthus</i>, Principles, ch. 5. According to
+ <i>Ricardo</i>, ch. 6, the decline of the rate of interest because of the
+ necessity of carrying on agriculture under harder conditions, must make
+ all capital of which raw material forms a part more valuable; while the
+ possessors of money-capital particularly find no indemnification.
+ <i>Wakefield</i>, England and America, 1853, accounts for it by saying
+ that production, besides the coöperation of capital and labor, needs "a
+ field of employment;" and <i>Bastiat</i>, Harmonies, ch. 5, 13, by saying
+ that with the advance of civilization, the results of former services lose
+ in value as compared with later ones, because performed under less
+ favorable circumstances.</p>
+
+ <p class="footnote"> <a name="footnote_185-4" id="footnote_185-4"></a>
+ <a href="#fnanchor_185-4">[185-4]</a>
+ <i>D. Hume</i>, Discourses No. 4 On Interest. Per contra, see
+ <i>Locke</i>, Considerations of the Consequences of the Lowering of
+ Interest; <i>Law</i>, sur l'Usage des Monaies, 1697 (Daire); and
+ <i>Montesquieu</i>, Esprit des Lois XXII, 6. <i>Cantillon</i> draws a very
+ nice distinction: If the increased amount <i>of</i> money in a state comes
+ into the hands of loaners, it will decrease the current rate by increasing
+ the number of loaners; but if it comes into the hands of consumers, the
+ rate rises, because now the demand <i>for</i> commodities is so much
+ greater. (Nature du Commerce, 284.)</p>
+
+ <p class="footnote"> <a name="footnote_185-5" id="footnote_185-5"></a>
+ <a href="#fnanchor_185-5">[185-5]</a>
+ The reviews in the Göttingen G. Anz., 1777, and of <i>von Iselin</i>, in
+ the Ephemeriden der Menschheit, II, 170 ff., 177, question <i>Adam
+ Smith's</i> (Wealth of Nat., II, ch. 4) entirely too positive denial of
+ the influence of the American production of gold and silver on the
+ diminution of the rate of interest, a view which was shared also by
+ <i>Turgot</i>, Form. et Distr., § 78. See a beautiful comparison between a
+ declining of the prices of the currency which, promotes production, with
+ the phenomena attending the growth of a tree, in <i>Schäffle</i>, N. Oek.,
+ II, Aufl., 249.</p>
+
+ <p class="footnote"> <a name="footnote_185-6" id="footnote_185-6"></a>
+ <a href="#fnanchor_185-6">[185-6]</a>
+ Thus the rate of interest in Rome fell from 12 to 4 per cent. when
+ Octavian suddenly threw the treasures of conquered Egypt upon the market,
+ and the price of commodities only doubled. When later commerce had divided
+ this amount of money among the provinces, it rose again. (<i>Sueton.</i>,
+ Oct., 41; <i>Dio C.</i>, LI, 17, 21; Oros, IV, 19.) <i>Law's</i> emissions
+ of paper, in colossal amounts, depressed the rate of interest to 1¼ per
+ cent. (<i>Dutot</i>, Réflexions, 990&mdash;Daire.) But as soon as the
+ paper money had lost its value, the former condition returned. Similar
+ observations in Rio de Janeiro: <i>Spix</i> und <i>Martius</i>, Reise, I,
+ 131.</p>
+
+ <p class="footnote"> <a name="footnote_185-7" id="footnote_185-7"></a>
+ <a href="#fnanchor_185-7">[185-7]</a>
+ While in Paris the capital safely invested paid 2½ to 3 per cent., 57 out
+ of 61 <i>conseils généraux</i> declared, in 1845, that the rate of
+ interest on hypothecations, in their departments, was always over 5 per
+ cent.; 17 estimated it at an average of from 6 to 7 per cent.; 12 at from
+ 7 to 10; some said 12 and 15, and even 22 per cent. in the case of small
+ sums loaned for a short time. (<i>Chegarny</i>, Rapport au Nom de la
+ Commission de la Réforme hypoth., 29 Avril, 1851.) In Russia, at the
+ beginning of this century, the rate of interest in the Baltic provinces
+ was 6 per cent.; in Moscow, 10; in Taurien, 25; in Astracan, 30 per cent.
+ (<i>v. Schlözer</i>, Anfangsgründe I, 102.) In 1750, in Naples, the rate
+ of interest was from 3 to 5 per cent., in the provinces from 7 to 9 per
+ cent. (<i>Guliani</i>, della Moneta, IV, 1.) In Trajan's time in Rome, 6;
+ in Bithynia, 12 per cent. (<i>Plin.</i>, Epist. VII, 18; X, 62.)</p>
+
+ <p class="footnote"> <a name="footnote_185-8" id="footnote_185-8"></a>
+ <a href="#fnanchor_185-8">[185-8]</a>
+ <i>Delacourt</i> Aanwysing, 1669, I, 7. <i>Temple</i>, Observations on the
+ U. Provinces, ch. 6, Works L. 1854. Even <i>Descartes</i> says of
+ Holland's <i>ubi nemo non exercet mercaturam</i>. Compare per contra,
+ <i>H. Grotius</i>, Jus Belli et Pacis, II, 12, 22. Very large capitalists,
+ in <i>Smith's</i> time, certainly lived generally on the interest of their
+ money: Richesse de Hollande, II, 172. In England, at the present day,
+ likewise, a vast number of persons who live on the interest of their
+ money, occasionally take part in the speculation in commodities; which
+ explains why so-called commercial crises are incomparably more extensive
+ there, and reach incomparably deeper, than in Germany. Similarly,
+ according to <i>Conring</i>, De Commercii, 1666, c. 36, in Venice and
+ Genoa.</p>
+
+ <p class="footnote"> <a name="footnote_185-9" id="footnote_185-9"></a>
+ <a href="#fnanchor_185-9">[185-9]</a>
+ Hence the larger cash balances in England at the present day, which,
+ however, are not kept in the form of coin, but of bank notes and bankers'
+ deposits.</p>
+
+ <p class="footnote"> <a name="footnote_185-10" id="footnote_185-10"></a>
+ <a href="#fnanchor_185-10">[185-10]</a>
+ As to how every frugal capitalist works to the injury of capitalists as a
+ class, but to his own advantage, by lowering the rate of interest and
+ increasing the rate of wages, see <i>Senior</i>, Outlines, 188 ff.</p>
+
+<p class="p2 center"><a name="S186"></a>SECTION CLXXXVI.</p>
+
+<p class="center smaller">HISTORY OF THE RATE OF INTEREST.&mdash;CAUSES OF
+A HIGH RATE IN THRIVING COMMERCIAL NATIONS.</p>
+
+<p>There are, however, even where a people's economy is in a flourishing
+condition, many obstacles which cause the decline of the rate of interest
+to take a retrogressive course, or which at least may delay it for a
+time.</p>
+
+<p><span class='pagenum'>[Pg 115]</span>To this category belong all the
+modifications of a nation's economy alluded to in § 183.<a
+name="fnanchor_186-1" id="fnanchor_186-1"></a><a href="#footnote_186-1"
+class="fnanchor">[186-1]</a> Among them, therefore, is every extension of
+the limits of productive land. Let us suppose a nation which, its capital
+and labor remaining the same in every respect, should suddenly double its
+territory. The less productive places where investments were made in the
+old province are now abandoned, and labor and capital emigrate to the new.
+The result is, of course, an increase of the aggregate national income,
+and, at the same time, a decrease of rent. (§ 157.) Hence, the interest on
+capital and the wages of labor, taken together, must greatly increase.
+Which of these two branches shall profit most and longest by the increase
+will depend upon whether capital or the number of workmen increases most
+rapidly.<a name="fnanchor_186-2" id="fnanchor_186-2"></a><a
+href="#footnote_186-2" class="fnanchor">[186-2]</a> A similar effect must
+be produced when, by changes or modifications in the commercial situation,
+in the tariff, etc., a nation is enabled to obtain the means of subsistence
+at cheaper rates from more fertile and less settled countries.<a
+name="fnanchor_186-3" id="fnanchor_186-3"></a><a href="#footnote_186-3"
+class="fnanchor">[186-3]</a></p>
+
+<p><span class='pagenum'>[Pg 116]</span>The introduction of better methods
+of production has very different immediate consequences, according as these
+methods affect the commodities which minister to the wants peculiar to
+workmen as a class, or do not. Let us suppose, as a first case, that the
+cost of ordinary clothing is reduced one half by reason of newly discovered
+material, better machines, etc. As in the case of the whole people, so also
+in that of the owners of capital as consumers, there is, in consequence, an
+addition to their enjoyment of life. Their interest as well as their
+capital, compared with clothing material, would have become more valuable.
+But the relation between capital and interest, that is, the rate of
+interest, could not be directly changed. (Compare <i>infra</i>, note 3.)
+Only when the working class employ their materially increased wages to
+increase population; when in consequence hereof, their wages, estimated in
+money, again decline beyond what it was before; when, therefore, the price
+of a given quantity of labor declines, does the rate of interest rise,
+although a portion of that which the workmen have lost may be added to rent
+on account of the increased population?<a name="fnanchor_186-4"
+id="fnanchor_186-4"></a><a href="#footnote_186-4" class=
+"fnanchor">[186-4]</a> <a name="fnanchor_186-5" id= "fnanchor_186-5"></a>
+<a href="#footnote_186-5" class= "fnanchor">[186-5]</a> If the
+applicability of the new method of production is confined to articles of
+luxury used by the upper classes, for instance to fine lace, the rate of
+interest <span class='pagenum'>[Pg 117]</span> usual in the country will be
+affected thereby only to the extent that through the medium of commerce
+such products are exchanged with foreign nations against commodities
+consumed by the working classes. But there are very few improvements in
+production which have not led to a greater cheapness of those things which
+satisfy the wants of the working class; and this is especially clear in the
+improvements in the means of transportation so usual in our day.</p>
+
+<p>However, the increase of fixed capital, such as machines, railroads,
+etc., once they are completed, may, at first, cause a depression of the
+rate of wages, as well as an enhancement of the rate of interest; the
+former from the fact that a number of workmen is thereby, at least
+temporarily, thrown out of employment; the latter because the conversion of
+so much circulating into fixed capital must diminish the supply of the
+former.<a name="fnanchor_186-6" id="fnanchor_186-6"></a><a href=
+"#footnote_186-6" class="fnanchor">[186-6]</a></p>
+
+<p>A second class of obstacles consists in the diminution of the supply of
+capital. War, for instance, always causes such a destruction of capital,
+and at the same time for the most part renders the reproduction of capital
+more difficult to such a degree that the rate of interest is wont to rise
+greatly.<a name= "fnanchor_186-7" id= "fnanchor_186-7"></a><a href=
+"#footnote_186-7" class= "fnanchor">[186-7]</a> Something similar is true
+of other great catastrophes and of extravagance on a large scale.<a
+name="fnanchor_186-8" id="fnanchor_186-8"></a><a href="#footnote_186-8"
+class="fnanchor">[186-8]</a> Every state loan, whether intended <span
+class='pagenum'>[Pg 118]</span> for direct consumption or to procure
+capital for use (<i>Nutzkapitalien)</i>, decreases the supply of
+circulating capital which most directly determines the market rate of
+interest.<a name="fnanchor_186-9" id="fnanchor_186-9"></a><a
+href="#footnote_186-9" class="fnanchor">[186-9]</a> <a name=
+"fnanchor_186-10" id="fnanchor_186-10"></a><a href="#footnote_186-10"
+class="fnanchor">[186-10]</a></p>
+
+ <p class="footnote"> <a name="footnote_186-1" id="footnote_186-1"></a>
+ <a href="#fnanchor_186-1">[186-1]</a>
+ <i>Wolkoff</i> very well shows that the economic progress of mankind is
+ effected partly by the improvement of production, and partly by saving.
+ The former increases the rate of interest, the latter lowers it.
+ (Lectures, 182, 189. Compare <i>supra</i>, § 45.)</p>
+
+ <p class="footnote"> <a name="footnote_186-2" id="footnote_186-2"></a>
+ <a href="#fnanchor_186-2">[186-2]</a>
+ Thus the rate of interest in Russia rose, after Catherine II. had
+ conquered the provinces situated on the Black Sea. (<i>Storch</i>,
+ Handbuch, II, 34.) The same is still more strikingly apparent in the
+ judicious planting of agricultural colonies.</p>
+
+ <p class="footnote"> <a name="footnote_186-3" id="footnote_186-3"></a>
+ <a href="#fnanchor_186-3">[186-3]</a>
+ Abolition of the English corn laws! Foreign commerce when very
+ advantageous, always adds to the well-being of the people; to the rate of
+ interest, however, only to the extent that articles which are calculated
+ to satisfy the wants of the working class become cheaper in consequence;
+ and this in turn lowers the rate of wages. Let us suppose that a country
+ had hitherto purchased yearly 10,000 barrels of wine for $1,000,000. It
+ might now happen that, in consequence of an advantageous commercial
+ treaty, for instance, the 10,000 barrels might be obtained for $500,000.
+ If, after this, wine-drinkers want to spend $1,000,000 for wine as they
+ did before, they of course double their consumption of wine, but the rate
+ of interest remains unchanged. If, on the other hand, they leave their
+ consumption of wine where it was before and apply the saved half million
+ to effect an increased demand for home products, the capital required for
+ this production is set free at the same time. Hence, the relation between
+ the supply and demand for capital has not changed, abstraction made of
+ certain difficulties in the transaction. Compare <i>Ricardo</i>,
+ Principles, ch. 7, rectifying <i>Adam Smith</i>, Wealth of Nat., I, ch.
+ 9.</p>
+
+ <p class="footnote"> <a name="footnote_186-4" id="footnote_186-4"></a>
+ <a href="#fnanchor_186-4">[186-4]</a>
+ An increase in the rate of interest caused by a diminution in the rate of
+ wages does not last long. Capital now increases more rapidly, and the
+ increase is accompanied by an increased demand for labor. If, in the mean
+ time, workmen have become accustomed to a lower standard of life, the
+ increasing wages are followed by an increase of population: then the
+ necessity of having recourse to the cultivation of land of a worse quality
+ is an additional cause of a decreasing rate of interest. (Edinb. Rev.,
+ March, 1824, 26.)</p>
+
+ <p class="footnote"> <a name="footnote_186-5" id="footnote_186-5"></a>
+ <a href="#fnanchor_186-5">[186-5]</a>
+ According to this, it is easy to tell what influence the increasing skill
+ or activity of the working class (for instance by a decrease in the number
+ of holidays, coöperation of wife and child) must have. Where there has
+ been no accompanying and corresponding elevation of the standard of life,
+ and of the want of the class, the gain soon falls to the lot of the
+ capitalists or landowners.</p>
+
+ <p class="footnote"> <a name="footnote_186-6" id="footnote_186-6"></a>
+ <a href="#fnanchor_186-6">[186-6]</a>
+ See the very clear but not entirely complete discussion in <i>John Stuart
+ Mill</i>, Principles, IV, ch. 3 ff. When new railways, machines, etc.,
+ before they are complete, simultaneously increase the rate of interest and
+ the rate of wages, and even sometimes rent, although they do not
+ immediately increase the national income in any way, the phenomena are to
+ be explained, not by a distribution of income, but as the result of an
+ advance of capital made.</p>
+
+ <p class="footnote"> <a name="footnote_186-7" id="footnote_186-7"></a>
+ <a href="#fnanchor_186-7">[186-7]</a>
+ Compare <i>supra</i>, § 184. The rise of the rate of interest in Basil,
+ between 1370 and 1393, <i>Arnold</i> (loc. cit.) accounts for by the wars
+ and defeats of the upper German cities. Similarly in Zürich, 1457.
+ (<i>Joh. Müller</i>, Schweizer Geschichte, IV, 211.) During the time
+ immediately following the Spanish war of succession, the <i>usuriers les
+ flus modérés</i> in France got 12-15 per cent. a year. (<i>Dutot</i>,
+ Réflexions, 1866.) In Russia the rate of interest, after the war of
+ 1805-15, rose by 4-5 per cent. (<i>Storch</i>, Handbuch, 35 seq.) Per
+ contra, <i>Nebenius</i>, Oeff. Credit., 70 seq.</p>
+
+ <p class="footnote"> <a name="footnote_186-8" id="footnote_186-8"></a>
+ <a href="#fnanchor_186-8">[186-8]</a>
+ Thus the Hamburg conflagration, combined with the bad harvests of 1841,
+ raised the rate of interest in Mecklenburg for a long series of years.
+ Similarly in Würtemburg, the many bad harvests from 1845 to 1853, which
+ are said to have caused a deficiency of 50,000,000 florins. (Tübinger
+ Zeitschr., 1856, 568.)</p>
+
+ <p class="footnote"> <a name="footnote_186-9" id="footnote_186-9"></a>
+ <a href="#fnanchor_186-9">[186-9]</a>
+ In bad times, state loans are usually effected at a disproportionally high
+ rate of interest. This also operates momentarily on the general rate of
+ interest, to the injury of persons engaged in business enterprises; who,
+ by the very fact of the withdrawal of so much capital, become involved in
+ an unfavorable competition. In the long run, indeed, the high or low rates
+ of interest paid by national debts, in so far as the creditor cannot
+ demand reimbursement, has no influence on the rate of interest usual in
+ the country. Such debts as cannot be declared due assume the character of
+ stationary capital, the value in exchange of which is determined by their
+ yearly return, capitalized at the rate of interest usual in the country.
+ (<i>Hermann</i>, Staatswirthschaftliche<a name= "fnanchor_TN22" id=
+ "fnanchor_TN22"></a><a href= "#footnote_TN22" class= "fnanchor">[TN
+ 22]</a> Untersuch., 223.)</p>
+
+ <p class="footnote"> <a name="footnote_186-10" id="footnote_186-10"></a>
+ <a href="#fnanchor_186-10">[186-10]</a>
+ The coöperation of most of the causes above mentioned raised the English
+ rate of interest which had sunk to 3 per cent. to an average of 5, from
+ about 1760 to 1816. Thus <i>Gauss</i>, in a manuscript work which I have
+ used, relates that the fund for the support of professors' widows in
+ Göttingen was, in 1794, expected to pay only 3 per cent. In 1799, the
+ trustees observed that their capital could often be safely invested at 4
+ per cent.; somewhat later the rate of interest rose to 5 per cent., at
+ which point it remained for years. About 1843 ff. the rate of interest in
+ old Bavaria was only 4 per cent.; in more highly cultured Rhenish Bavaria,
+ 5 per cent.</p>
+
+<p class="p2 center"><a name="S187"></a>SECTION CLXXXVII.</p>
+
+<p class="center smaller">HISTORY OF THE RATE OF INTEREST.&mdash;EMIGRATION
+OF CAPITAL.</p>
+
+<p>Midway between these classes of obstacles lies the very usual proceeding
+of highly civilized nations whose rate of interest is low, to transfer
+their capital into countries with a higher rate of interest, where the
+production of raw material is predominant.<a name="fnanchor_187-1"
+id="fnanchor_187-1"></a><a href="#footnote_187-1" class=
+"fnanchor">[187-1]</a> This is most thoroughly accomplished by the <span
+class='pagenum'>[Pg 119]</span> emigration for good of the capitalists
+themselves; but also least frequently, because the natural attachment of
+man to his native country is usually too powerful, among the well-to-do
+classes, to be overcome by the attraction of a higher rate of interest.
+Temporary settlements in foreign countries are by far more frequent. Either
+the capitalist removes there himself, for a time, to return enriched, at
+farthest, in his old age; or he establishes a permanent branch of his
+business there, and superintends it through the agency of a trusted
+representative. The inhabitants of northern Italy, during the last
+centuries of the middle ages, maintained such establishments, not only for
+the purpose of carrying on commerce in merchandise along the shores of the
+Levant, but also the money trade in the principal countries of the west.<a
+name="fnanchor_187-2" id="fnanchor_187-2"></a><a href="#footnote_187-2"
+class="fnanchor">[187-2]</a> Similarly, the Hanseatic <span
+class='pagenum'>[Pg 120]</span> cities contemporaneously in the north and
+northeast of Europe; and, to-day, the English in almost all the important
+seaport cities in the world.<a name="fnanchor_187-3" id=
+"fnanchor_187-3"></a><a href= "#footnote_187-3" class=
+"fnanchor">[187-3]</a> Such enterprises are always somewhat dangerous,
+especially in countries but little advanced in civilization.<a name=
+"fnanchor_187-4" id= "fnanchor_187-4"></a><a href= "#footnote_187-4"
+class="fnanchor">[187-4]</a></p>
+
+<p>The best means to facilitate the migration of capital is credit. It is,
+indeed, true, that in international trade, ordinary private loans are
+seldom made. To make such loans would be to run too many risks; risks
+through a want of knowledge of persons or circumstances, on account of the
+difficulties in the way of continued supervision, and of being able to
+assert and defend one's rights away from home.<a name="fnanchor_187-5"
+id="fnanchor_187-5"></a><a href="#footnote_187-5" class=
+"fnanchor">[187-5]</a> Loans are much more readily made to foreign states,
+to great corporations, or joint-stock <span class='pagenum'>[Pg 121]</span>
+companies, whose condition is well-known; and which, by reason of their
+perpetuity, have a deep and obvious interest in maintaining an honorable
+reputation. The issuing of certificates of stock, etc., has greatly
+facilitated international trade in capital.<a name="fnanchor_187-6" id=
+"fnanchor_187-6"></a><a href= "#footnote_187-6" class=
+"fnanchor">[187-6]</a> But the mode of loaning in foreign parts preferred
+is to sell them commodities, and to require payment for them only after
+some time has elapsed, of course, with interest. Purchases, on the
+contrary, are paid for immediately, possibly even in advance.<a
+name= "fnanchor_187-7" id="fnanchor_187-7"></a><a href="#footnote_187-7"
+class= "fnanchor">[187-7]</a> The lower the rate of interest in a <span
+class='pagenum'>[Pg 122]</span> country is, the longer and more cheaply can
+it give credit to others; a new reason why the less civilized countries are
+particularly fond of trading with the most civilized.<a name=
+"fnanchor_187-8" id="fnanchor_187-8"></a> <a href= "#footnote_187-8" class=
+"fnanchor">[187-8]</a> <a name="fnanchor_187-9" id= "fnanchor_187-9"></a><a
+href= "#footnote_187-9" class= "fnanchor">[187-9]</a></p>
+
+ <p class="footnote"> <a name="footnote_187-1" id="footnote_187-1"></a>
+ <a href="#fnanchor_187-1">[187-1]</a>
+ <i>Nebenius</i>, Der öffentliche Credit, 83 ff. After the end of the
+ Napoleonic war, English capital flowed, by way of preference, towards
+ South America, afterwards towards Spain and Portugal; after 1830, to North
+ America; after 1840, towards Germany and France, to be invested in the
+ construction of railways in the latter countries.</p>
+
+ <p class="footnote"> <a name="footnote_187-2" id="footnote_187-2"></a>
+ <a href="#fnanchor_187-2">[187-2]</a>
+ The inhabitants of Asti began in 1226 to carry on the trade in money in
+ trans-Alpine counties. In 1256, <i>Louis IX</i>. ordered 150 Asti
+ money-changers to be thrown into prison, and he confiscated the money they
+ had loaned in France, to the amount of over 800,000 livres. They were
+ afterwards turned over to their enemy, the Count of Savoy, as usurers.
+ (<i>Muratori</i>, Scr. Rerum Ital., XI, 142 seq.) About 1268, Louis IX.
+ banished all money-changers of Lombard or Cahors origin: they were allowed
+ only three months in which to collect their debts. (<i>Sismondi</i>,
+ Histoire des Fr., VIII, 112.) About 1277, again all Italian money dealers
+ were imprisoned, and 120,000 gold guldens extorted from them. (<i>Giov.
+ Villani</i>, VII, 52.) After the Lombards had lost their freedom, the
+ business passed into the hands of the Florentines and of the inhabitants
+ of Lucca. (<i>Sismondi</i>, Gesch. der ital. Republiken, IV, 602;
+ <i>Dante</i>, Inferno, XXI, 38.) Great part played by the brothers
+ Franzesi as dealers in articles of luxury, and loaners on pledge etc., at
+ the court of Philip IV. They seem to have instigated the persecution of
+ other Italian money dealers, in 1291, from jealousy. (<i>Sismondi</i>,
+ Histoire des Fr., VIII, 429 seq.) Great losses of the Florentines by the
+ English-French war in 1337: Edward III. remained in the debt of his
+ bankers Peruzzi and Bardi to the amounts respectively of 135,000 and
+ 184,000 marks sterling; so that they and many others failed. France
+ imprisoned all the Italian money dealers, and compelled them to pay a
+ large amount of ransom-money. (<i>G. Villani</i>, XI, 71.) In 1376, the
+ Pope who was engaged in a struggle with Florence, called upon all princes
+ to despoil all Florentine merchants within their jurisdiction of their
+ wealth, and to sell them as slaves; and France and England actually did
+ so. (<i>Sismondi</i>, Geschichte der ital. Republiken, V, 257 seq., VII,
+ 74.)</p>
+
+ <p class="footnote"> <a name="footnote_187-3" id="footnote_187-3"></a>
+ <a href="#fnanchor_187-3">[187-3]</a>
+ Shortly before the French Revolution, Cadiz had over 50 wholesale
+ merchants against 30 retail, 30 modistes and at least 100 tradesmen from
+ France. (<i>Bourgoing</i>, Tableau, III, 130.) Commercial colonies!</p>
+
+ <p class="footnote"> <a name="footnote_187-4" id="footnote_187-4"></a>
+ <a href="#fnanchor_187-4">[187-4]</a>
+ Thus even the emperor Paul of Russia caused the property of English
+ factors to be confiscated. The galleons which Holland and England captured
+ in the Spanish war of succession belonged mostly to Amsterdam houses.
+ (<i>Ranke</i>, Franz. Gesch., IV, 226.) Even <i>Galiani</i>, Della Moneta,
+ IV, 3, thinks that, on this account, such commerce is incompatible with
+ the warlike spirit. It is certain, however, that a government like the
+ English would do well not to permit a war with such countries as Russia or
+ the United States to break out too suddenly, that their subjects might
+ have time to collect all their outstanding dues. When, in 1855, it was
+ reported in London that all Russian drafts were dishonored, people looked
+ upon that fact as the surest sign of coming war. English merchants had
+ called in their advances to Russia during the preceding economic period,
+ and refused to make new ones.</p>
+
+ <p class="footnote"> <a name="footnote_187-5" id="footnote_187-5"></a>
+ <a href="#fnanchor_187-5">[187-5]</a>
+ This of course disappears when the borrowing country is dependent on the
+ loaning country. Thus, the Canton of Uri formerly prohibited the
+ inhabitants of the Livinerthal to borrow capital except from them. It is
+ said that, at the beginning of this century, the Uri capital then loaned
+ amounted to one-half a million florins, that is, an average of 250 per
+ householder. Now it is not over one-fifth of that amount.
+ (<i>Franscini</i>, Canton Tessin, 126.) Think also of the plantation
+ colonies! But even the East Indies may be looked upon as a species of
+ colony for England. Hence <i>Fawcett</i>, Manual, 105, is rightly of the
+ opinion that no other country has the possibility of being as useful to
+ the East Indies as England. And in fact, the East Indian railways obtained
+ of their capital of £82,500,000, only a very small part, £800,000, in
+ India itself, a very small proportion of which latter sum was subscribed
+ by the native population. (Ausland 24, Juli, 1869.)</p>
+
+ <p class="footnote"> <a name="footnote_187-6" id="footnote_187-6"></a>
+ <a href="#fnanchor_187-6">[187-6]</a>
+ What England is to-day, the Italian commercial cities were in the 16th and
+ 17th centuries, viz.: the chief market for foreign loans. (Compare
+ <i>Mun,</i> England's Treasure, 1664, ch. 4.) The Genovese loaned money in
+ foreign countries at 2 and 3 per cent. (<i>Montanari</i>, Della Moneta,
+ 1867, cap. 2.) It is said that the Dutch, in 1778 invested 1,500 millions
+ of livres in foreign national debts, especially those of France and
+ England. (Richesse de Hollande, II, 178.) According to <i>J. G.
+ Forster</i>, Schriften, III, 335, in 1781 alone, in Europe, 800 millions
+ loaned capital. The Niederl. Jaerboek of 1789, p. 729, estimates the
+ amount of interest coming from abroad, English and French not included, at
+ from 50 to 60 millions of florins. About 1844, according to official
+ estimates, 1,000 million florins in foreign loans, that is one-third of
+ whole national income. (Allgemeine Zeitung, 1844, No. 35.) Now, Belgium,
+ 300 million florins, in Austrian evidences of indebtedness. (Quarterly
+ Review, October, 1862, 402.) According to <i>Baumstark</i>,
+ Staatswissensch. Versuche über Staatscredit, etc., 1833, 77, foreign
+ nations, between 1818 and 1825, borrowed in England £49,000,000; and,
+ about the same time, England participated in Russian, French and North
+ American loans to the extent of £55,500,000. It is said that there were,
+ in 1843, £25,000,000 English capital in the canals, railroads and banks of
+ the United States. (<i>Porter</i>, Progress of the Nation, III, 4,
+ 634.)</p>
+
+ <p class="footnote"> <a name="footnote_187-7" id="footnote_187-7"></a>
+ <a href="#fnanchor_187-7">[187-7]</a>
+ It is evident, from many of Demosthenes' orations on private matters, that
+ Athens was in the habit of advancing the commercial capital needed by a
+ great part of the inhabitants of the Mediterranean coast. Many colonial
+ cities, Phaselis, for instance, had the very worst reputation in this
+ respect. They were virtually pirates as regards Athens. (Adv. Lacrit.,
+ 931.) Here also it seems that the goods taken for the loan had to be
+ brought to Athens. (941.) On the regular advances of Prussian merchants to
+ their Lithuanian and Polish vendors, in the 15th century, while the former
+ were forbidden even to buy on credit, see <i>Hirsch</i>, Geschichte des
+ Danziger Handels, 167, 177. In Colbert's time, the Dutch gave 12 months
+ credit in Europe. (<i>J. De Wit</i>, Mémoires, 184.) In England,
+ <i>Child</i> perceives a great advance in this: that in 1650, in all
+ business in the interior, there was a credit of 3 to 18 months given; and
+ in 1669, everything was paid for in cash. (Discourse on Trade, 45.)
+ Concerning previous times, see <i>W. Raleigh</i>, Observations touching
+ Trade and Commerce with the Hollander and other nations, 1603. (Works,
+ VIII, 951 ff.) In North America, merchants in the interior frequently
+ purchase their goods of importers on 6 months credit. (<i>Tellkampf</i>,
+ Beiträge, I, 52.) In the West Indies, about the end of the last century,
+ the English gave a credit, generally, of from 12 to 16 months. (<i>B.
+ Edwards</i>, History of the British West Indies, II, 383.) In Brazil, in
+ the case of imports, 4, 8 and even 12 months credit; payment in monthly
+ installments, and frequently even longer delay, without interest. In the
+ case of exports, when cash payments are not made, 1 per cent. a month,
+ (<i>v. Reden</i>, Garn und Leinenhandel, 332.) Recently only about 40 per
+ cent. of foreign advances are made at 12 to 20 months, 60 per cent. at
+ from 50 to 70 days. (Tübing. Zeitschr., 1864, 517.)</p>
+
+ <p class="footnote">In Buenos Ayres, the producer or collector of export
+ articles required the price to be paid usually a long time in advance
+ (<i>habilitacion</i>), a very bold but necessary procedure, on account of
+ his poverty. (<i>Robertson</i>, Letters on S. America, I, 174 ff.) In the
+ corn trade in South Russia, at least one-half of the purchase money was
+ required to be paid in advance, and even before shipment, the other half
+ as soon as the corn arrived in the harbor, and, hence, sometimes, long
+ before it was put on board. (<i>W. Jacob</i>, On the Corn Trade of the
+ Black Sea, 23.) Compare <i>Tooke</i>, View of the Russian Empire, I, 339,
+ Richesse de Hollande, II, 43, <i>Storch</i>, Handbuch, II, 61 seq. Russia
+ was, about 1770, a credit-giving nation to the still poorer Persians.
+ (<i>Gmelin</i>, Reise, III, 413.) The Spaniards also, in their American
+ colonies, had always an expedition ready and waiting, the payment for
+ which was made on the arrival of the second. (<i>Depons</i>, Voyage dans
+ la Terre Firme, II, 368.) Moreover, active commerce simply, especially
+ when circuitous, may be considered as in some way an international loan;
+ and thus it is that the favorable "balance," by means of which
+ claim-rights are obtained in foreign countries, is secured.</p>
+
+ <p class="footnote"> <a name="footnote_187-8" id="footnote_187-8"></a>
+ <a href="#fnanchor_187-8">[187-8]</a>
+ Notwithstanding the gratitude of the United States towards France, and
+ spite of all the French ambassador could do, the English immediately after
+ the conclusion of peace, attracted the greatest part of American trade to
+ themselves. (<i>Chaptal</i>, de l'Industrie Fr., I, 103.) Countries with a
+ low rate of interest have an advantage in this respect, which grows after
+ the manner of compound interest, when the duration of the advance of
+ capital is prolonged. (<i>Senior</i>, Outlines, 195.)</p>
+
+ <p class="footnote"> <a name="footnote_187-9" id="footnote_187-9"></a>
+ <a href="#fnanchor_187-9">[187-9]</a>
+ How capitalists may, by the giving of international credit, fall into an
+ injurious habit, is shown by the late and troublesome building up of the
+ Dutch railway system, while so many foreign railway enterprises were
+ provided with Dutch capital.</p>
+
+<p class="p2 center"><a name="S188"></a>SECTION CLXXXVIII.<span
+class='pagenum'>[Pg 123]</span></p>
+
+<p class="center smaller">HISTORY OF THE RATE OF INTEREST.&mdash;EFFECT OF
+A LOW RATE ON STATIONARY NATIONS.</p>
+
+<p>Beneficial as the spur of a low rate of interest is for countries
+capable of development, it is a heavy drag on a stationary people, and more
+so on those who have lost a portion of the field for the investment of
+their capital by the competition of too powerful rivals.<a
+name="fnanchor_188-1" id="fnanchor_188-1"></a><a href="#footnote_188-1"
+class="fnanchor">[188-1]</a> A real superabundance of capital is attended
+with cares and temptations for the middle classes very similar to those
+caused by a so-called over-population, especially to dishonesty and
+extravagance.<a name="fnanchor_188-2" id="fnanchor_188-2"></a><a
+href="#footnote_188-2" class="fnanchor">[188-2]</a> When capital,
+population and the skillfulness of labor remaining the same, continues to
+increase, the enlarged capital may very readily have every succeeding year
+only the same return to divide among its owners, that the smaller had in
+previous years.<a name="fnanchor_188-3" id="fnanchor_188-3"></a><a
+href="#footnote_188-3" class="fnanchor">[188-3]</a> Hence additional saving
+here would produce no real enrichment of the people; and it might even
+happen that the instinct to accumulate capital might in <span
+class='pagenum'>[Pg 124]</span> the future become torpid to a greater
+degree than the capital itself had increased. In any case, however, the
+decline of the rate of interest can continue only to a certain point. There
+are numberless persons who would rather consume their capital, or invest it
+in hazardous speculations than put it out at interest at one per cent. a
+year.<a name="fnanchor_188-4" id="fnanchor_188-4"></a><a
+href="#footnote_188-4" class="fnanchor">[188-4]</a> At least, the tendency
+of a decline in the rate of interest is, in the case of the richer, to
+increase the amount of capital consumed as compared with productive
+capital. The more moderate, sober and provident a people are, the lower may
+the rate of interest decline without producing this effect. And so, the
+more the capital of a nation is concentrated in the hands of a few; because
+then the owners of capital are all the later forced to break in upon it,
+for the sake of subsistence.<a name= "fnanchor_188-5" id=
+"fnanchor_188-5"></a><a href= "#footnote_188-5" class=
+"fnanchor">[188-5]</a> <a name="fnanchor_188-6" id="fnanchor_188-6"></a><a
+href="#footnote_188-6" class="fnanchor">[188-6]</a></p>
+
+<p><span class='pagenum'>[Pg 125]</span>Among nations which have totally
+declined, the rate of interest is wont to reach a high point once more; the
+natural result of great losses of capital and men, while, at the same time,
+the freedom of the lower classes and the security of property have been
+either curtailed or lost. The weakness of age is, in many respects, even in
+the case of nations, a second childhood.<a name="fnanchor_188-7"
+id="fnanchor_188-7"></a><a href="#footnote_188-7" class=
+"fnanchor">[188-7]</a></p>
+
+ <p class="footnote"> <a name="footnote_188-1" id="footnote_188-1"></a>
+ <a href="#fnanchor_188-1">[188-1]</a>
+ <i>Temple</i>, Works I, 102, assures us that the Dutch in his time
+ considered the payment of the principal of a public debt a real
+ misfortune: "they receive it with tears, not knowing how to dispose of it
+ to interest with such safety and ease." On Italy, see <i>Bandini</i> (ob.
+ 1760), Sopra le Maremme Sienese, 154 seq.; earlier <i>Montanari</i>, Della
+ Moneta, 57. In the England of the present time, small capitalists
+ especially belong to the so-called "uneasy" classes.</p>
+
+ <p class="footnote"> <a name="footnote_188-2" id="footnote_188-2"></a>
+ <a href="#fnanchor_188-2">[188-2]</a>
+ Numberless bankrupts and unbounded extravagance in Holland. (Richesse de
+ Hollande, II, 168.) In England, the hazardous enterprises of 1825 were
+ very much promoted by the action of the government which a short time
+ before reduced the interest on its state debt. (<i>Tooke</i>, History of
+ Prices, II, 148 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_188-3" id="footnote_188-3"></a>
+ <a href="#fnanchor_188-3">[188-3]</a>
+ <i>J. S. Mill</i>, IV, ch. 4, 4. When <i>Ricardo</i>, ch. 6, says that
+ every increase of productive capital must enhance the value in use, and
+ still more the value in exchange, of a nation's property, but under such
+ circumstances only to the advantage of the working class, and still more
+ of the land owning class, he at least apparently presupposes an
+ improvement, or increase of labor.</p>
+
+ <p class="footnote"> <a name="footnote_188-4" id="footnote_188-4"></a>
+ <a href="#fnanchor_188-4">[188-4]</a>
+ Think only of the so-called commercial crises, the speculation-rage
+ preceding which is excited by the lowness of the rate of interest, the
+ destruction of capital in which makes the rate of interest to retrograde
+ materially. However, this very decline is, in itself, only a spur to
+ speculation in evidences of national indebtedness, stocks, etc., in
+ commodities, only where, without such speculation, a rise in prices was to
+ be expected. Thus, for instance, the great English periods of speculation:
+ 1796 ff., in colonial products; 1808 ff., in raw materials in general;
+ 1814, in articles of export, were times in which there was not the
+ slightest facility in obtaining credit. (<i>Tooke</i>, History of Prices,
+ III, 159.)</p>
+
+ <p class="footnote"> <a name="footnote_188-5" id="footnote_188-5"></a>
+ <a href="#fnanchor_188-5">[188-5]</a>
+ Between 1829 and 1849, the highest rate of interest paid by English
+ capital employed in cotton industries was little over 2½ per cent. (Edinb.
+ Rev., April, 1849, 429.)</p>
+
+ <p class="footnote"> <a name="footnote_188-6" id="footnote_188-6"></a>
+ <a href="#fnanchor_188-6">[188-6]</a>
+ As the symptoms of a condition are very frequently mistaken for its cause,
+ there have been many writers who, blinded especially by the contemplation
+ of Holland, considered the lowness of the rate of interest as the <i>causa
+ causans</i> of all wealth, and who promised really magical results from
+ its legislative regulation by the state. Thus <i>Sir Thomas Culpeper</i>,
+ A Tract against the high Rate of Usury, 1623; continuation 1630; <i>Sir J.
+ Child</i>, Brief Observations concerning Trade and the Interest of Money,
+ 1668; Discourse of Trade, 1690. <i>Anderson</i> (ob. 1765), was of a
+ similar opinion: Origin of Commerce, a. 1601, 1651; and even
+ <i>Ganilh</i>, Dictionnaire analytique, 99 seq. (<i>Infra</i>, § 162.) Per
+ <i>contra</i>, the anonymous essay, Interest of Money mistaken, 1668, and
+ <i>Locke</i>, Considerations of the Consequences of the Lowering of
+ Interest and Raising the Value of Money, 1691. Most moderns have
+ considered the decline of the rate of interest an evil. Thus, for
+ instance, <i>Canard,</i> Principes, ch. 5, who uniformly makes this the
+ starting point of a nation's downfall. See also <i>McCulloch</i>,
+ Principles, III, 8. <i>Malthus</i> draws a comparison between the saving
+ of capital and the generation of children: only a high rate of interest
+ makes the former really useful, and a high rate of wages the latter.</p>
+
+ <p class="footnote">Even great destruction and disturbances of capital by
+ war, by loans to the state, for instance, are soon made good, provided the
+ sources of the saving of capital are not dried up. (Principles, III, 370
+ ff., 401, ff.) <i>John Stuart Mill</i> expressly counsels rich and highly
+ civilized nations not to neglect beneficent enterprises, although
+ economically unproductive, because capital might be lost in them. The
+ result of such a loss would, under certain circumstances, simply be that
+ less capital would be exported or wasted in speculation. (Principles, II,
+ ch. 5, 1.) Similarly <i>Canard</i>, who, therefore, compares state loans
+ with blood-letting, as a remedy for a plethoric disease. (Ch. 9.)
+ <i>Turgot</i> confounded cause and effect when he compared a high rate of
+ interest to an inundation, below the level of which nothing can be
+ produced; and which, the lower it became, the more dry ground there was
+ for men to work on. (Sur la Formation, etc., § 89.)</p>
+
+ <p class="footnote"> <a name="footnote_188-7" id="footnote_188-7"></a>
+ <a href="#fnanchor_188-7">[188-7]</a>
+ Rate of interest in Persia from 40 to 50 per cent. a year. (Ausland, 1844,
+ No. 208.) In Tripoli, Christians and Jews alike loan the Arabs at the rate
+ of 5 per cent. a month; at least 1½ or 2. (<i>Rohlfs</i>, von Tripolis
+ nach Alexandrien, 1871, I, 22.) In most of the East Indian kingdoms, the
+ rate of interest is so high for the government itself that when the
+ creditor, even without a return of the capital, gets the interest only for
+ a few years, he is considered passably well indemnified. (<i>J. S.
+ Mill</i>, II, ch. 15, 2.) In China, 12 to 15 per cent.; 36 nothing unheard
+ of. (<i>Barrow</i>, China, 562.)</p>
+
+<p class="p2 center"><a name="S189"></a>SECTION CLXXXIX.</p>
+
+<p class="center smaller">INTEREST-POLICY.&mdash;LEGITIMATENESS OF
+INTEREST.</p>
+
+<p>The legitimateness of interest is based on two unquestionable grounds:
+on the real productiveness of capital, and on the real abstinence from
+enjoyment of it by one's self.<a name= "fnanchor_189-1" id= "fnanchor_189-1"></a><a href= "#footnote_189-1" class="fnanchor">[189-1]</a> Let us <span
+class='pagenum'>[Pg 126]</span> suppose a nation of fishermen with no
+private ownership in land and no capital, living naked in caverns, on
+sea-fish which the ebb of the ocean has left in the puddles along the
+shore, and which are caught only with the hand.<a name="fnanchor_189-2"
+id="fnanchor_189-2"></a><a href="#footnote_189-2" class=
+"fnanchor">[189-2]</a> All workmen here may be equal, and each catch and
+consume three fish a day. Let us again suppose that some clever savage
+reduces his consumption to two fish a day, for one hundred days, and uses
+the stock of one hundred fish collected in this way to enable him to devote
+all his strength and labor, during fifty days, to the construction of a
+boat and a net. With the aid of this capital he, from the first, catches
+thirty per day. What now will his fellow tribesmen, who are not capable of
+such intelligent and systematic self control to do as he has done, do? What
+will they offer him for the use of his capital? In discussing this question
+both parties will very certainly consider not only the fifty days' labor
+spent in the construction of the boat, etc., but also the one hundred and
+fifty days during which its maker had to abstain from his full ration of
+food. If the borrower, of the thirty fish which may be caught daily with
+the aid of his capital, gives twenty-seven away, his condition is at least
+no worse than it was at first. On the other hand, the lender, if
+compensated only for the wear and tear of his capital, would reap no profit
+whatever from his loan. The interest to be paid will be fixed somewhere
+between these two extremes by the relation between demand and supply. A
+loan which pays no interest is a donated use <span class='pagenum'>[Pg
+127]</span> of capital. (<i>Knies.</i>)<a name="fnanchor_189-3"
+id="fnanchor_189-3"></a><a href="#footnote_189-3" class=
+"fnanchor">[189-3]</a> Interest may be called the reward of abstinence
+(<i>Senior</i>), in the same way as wages is called the reward of
+industry.<a name="fnanchor_189-4" id="fnanchor_189-4"></a><a
+href="#footnote_189-4" class="fnanchor">[189-4]</a> With the abolition of
+interest, exchange would be limited to the mere present, without any
+mediation between the past and the future. A great number of services would
+bring no equivalent in return, and, therefore, as a <span
+class='pagenum'>[Pg 128]</span> rule, never be performed. Most of the
+charges commonly made in our day against the "tyranny of capital" are, at
+bottom, only a complaint that capital is not inexhaustible; and even those
+workmen who are obliged to pay most to capital would be much worse off
+without it.</p>
+
+ <p class="footnote"> <a name="footnote_189-1" id="footnote_189-1"></a>
+ <a href="#fnanchor_189-1">[189-1]</a>
+ The Greeks very appropriately call interest τόκος,<a name= "fnanchor_TN23"
+ id= "fnanchor_TN23"></a><a href= "#footnote_TN23" class= "fnanchor">[TN
+ 23]</a> i. e., that which is born. In the loaning of capital productively
+ invested, the creditor, in the interest received, consumes the real
+ produce of his property. If the debtor has consumed the property
+ unproductively, the creditor indeed lives on the debtor's other returns or
+ supplies; which, however, without his intervention would probably have
+ been consumed by their owner.</p>
+
+ <p class="footnote"> <a name="footnote_189-2" id="footnote_189-2"></a>
+ <a href="#fnanchor_189-2">[189-2]</a>
+ We here, for the time being, make abstraction of all entangling
+ surrounding circumstances. However, <i>Diodor.</i>, III, 15 ff., and
+ <i>Strabo</i>, XVI, 773, describe a very similar condition of things among
+ the Ichthyographs; also <i>Hildebrand</i>, Reise, um die Erde, III, 2, in
+ China. In the Sudan, whole generations fetch water every day from a
+ distant town, instead of working for a few weeks to dig a deep well nearer
+ home. (<i>Barth</i>, Afr. Reise, III, 297.)</p>
+
+ <p class="footnote"> <a name="footnote_189-3" id="footnote_189-3"></a>
+ <a href="#fnanchor_189-3">[189-3]</a>
+ The most recent relapse into the old error of the unproductiveness of
+ capital, viz.: that of <i>Karl Marx</i> (Das Kapital; Kritik der polit.
+ Oekonomie, I, 167) is a turning round and round of the author in the
+ vicious circle of his demonstration. If the value of every commodity
+ depends simply on the labor necessary to bring it into existence, or on
+ the time of labor required to produce it, it is self-evident that the
+ value of the capital consumed for the purpose of its production, can at
+ most be only preserved in the new product, and that all the additional
+ value (<i>Mehrwerth</i>) of the latter should be ascribed to labor. (172,
+ and passim.) Hence, strictly speaking, the capitalist who advances capital
+ to workmen, is still bound in duty to be grateful to the latter when the
+ value of his advance is preserved to him undiminished, (§ 173) and all
+ interest levied by him should be considered as a payment towards the
+ extinguishment of the capital [debt] itself. (556.) Relying on such
+ theories, many socialists admit private property and even the right of
+ inheritance to means of enjoyment and use capital
+ (<i>Gebrauchskapitalien</i>) provided only that land and productive
+ capital should pass over into the "collective property" of society, with
+ compensation, however, to their former owners. Considering the short
+ duration of most goods used in enjoyment or consumed, the evil
+ consequences of a community of goods mentioned in § 81, could not be
+ avoided to any extent by this means.</p>
+
+ <p class="footnote">How entirely fallacious the above assumption is, is
+ seen most strikingly in the case of such goods as cigars, wine, cheese,
+ etc., which, without the least addition of labor, by merely postponing the
+ consumption of them, obtain a much larger value both in exchange and in
+ use. Or, how would it be possible, for instance, to reduce the value of a
+ hundred-year-old tree, over and above the cost of planting it, to labor
+ alone? Similarly, the fact that on a Chilian <i>hacienda</i>, 25 per cent.
+ of the cattle can be slaughtered and no diminution of the herd take place.
+ (<i>Wappäus</i>, M. und S. Amerika, 784.) <i>Strassburger</i> rightly
+ inquires: if all the profit of capital is based on a cheating of workmen
+ by capitalists, who is cheated in the case in which a manufacturer without
+ workmen earns more with an increased capital than before with a small
+ capital? (<i>Hildebrand's</i> Jahrb., I, 103.)</p>
+
+ <p class="footnote"> <a name="footnote_189-4" id="footnote_189-4"></a>
+ <a href="#fnanchor_189-4">[189-4]</a>
+ In a time full of nabobism and pauperism, when some can, without the least
+ abstinence, make immense savings, and others none at all even with the
+ greatest abstinence, we may comprehend where the socialists find food for
+ their derision of the expression, "reward of abstinence."</p>
+
+<p class="p2 center"><a name="S190"></a>SECTION CXC.</p>
+
+<p class="center smaller">INTEREST-POLICY.&mdash;AVERSION TO INTEREST.</p>
+
+<p>At the same time, there is a strong aversion to the taking of interest
+prevalent among nations in a low stage of civilization. Industrial
+enterprises of any importance do not as yet exist here at all, and
+agriculture is most advantageously carried on by means of a great many
+parcels of land, but with little capital. The purchase of land is so rare,
+and hampered by legal restrictions to such a degree, that loans for that
+purpose are almost unheard of. And just as seldom does it happen, by reason
+of the superabundance of land, that the heir of a landowner borrows capital
+to effect an adjustment with his co-heirs, and thus enter alone into the
+possession of the estate. Here, as a rule, only absolute want leads to
+loaning.<a name="fnanchor_190-1" id="fnanchor_190-1"></a><a
+href="#footnote_190-1" class="fnanchor">[190-1]</a> If, in addition to
+this, we consider the natural height of the rate of wages in such times,
+the small number and importance of the capitalist class (§ 201), the tardy
+insight of man into the course and nature of economic production,<a
+name="fnanchor_190-2" id="fnanchor_190-2"></a><a href="#footnote_190-2"
+class="fnanchor">[190-2]</a> it will not be hard to understand <span
+class='pagenum'>[Pg 129]</span> the odium attached in the middle age of
+every nation to so-called interest-usury<a name="fnanchor_190-3"
+id="fnanchor_190-3"></a><a href="#footnote_190-3" class=
+"fnanchor">[190-3]</a> (<i>Zinswucher</i>).</p>
+
+<p>Most religions, the Christian excepted (the universal religion!), have
+been founded in the earlier stages of the nations who profess them, and
+have there, at least outwardly, exercised their greatest influence. No
+wonder, therefore, that so many religions have prohibited the taking of
+interest. Thus, for instance, the Jewish which, indeed, allows interest to
+be taken from foreigners, but raises loaning without interest among Jews in
+their commerce with one another, to the dignity of a duty binding on the
+conscience of the beneficent rich.<a name="fnanchor_190-4" id=
+"fnanchor_190-4"></a><a href="#footnote_190-4" class=
+"fnanchor">[190-4]</a> <a name="fnanchor_190-5" id= "fnanchor_190-5"></a><a
+href="#footnote_190-5" class= "fnanchor">[190-5]</a> Similarly in the
+Koran.<a name= "fnanchor_190-6" id="fnanchor_190-6"></a><a
+href="#footnote_190-6" class= "fnanchor">[190-6]</a> The Fathers of the
+Church, <span class= 'pagenum'>[Pg 130]</span> also, on the whole, look
+with disfavor on the taking of interest, relying upon well-known passages
+in the Old Testament, and, in part, on misunderstood expressions in the
+New.<a name= "fnanchor_190-7" id="fnanchor_190-7"></a><a
+href="#footnote_190-7" class= "fnanchor">[190-7]</a> This is especially
+true of the Fathers of the Church from the beginning of the fourth century,
+when the Roman empire was frightfully impoverished by the devastations of
+the barbarians, and as a consequence the conditions as to interest which
+prevail in the lowest stages of civilization had returned. Mercy towards
+the poor usually occupies the foreground in the demonstrations of the
+Fathers.<a name= "fnanchor_190-8" id="fnanchor_190-8"></a><a
+href="#footnote_190-8" class= "fnanchor">[190-8]</a></p>
+
+ <p class="footnote"> <a name="footnote_190-1" id="footnote_190-1"></a>
+ <a href="#fnanchor_190-1">[190-1]</a>
+ Distress-debts in contradistinction to acquisition-debts. (<i>Schmalz</i>,
+ Staatswirthsch. Lehre in Briefen, I, 227.) Compare <i>Hesiod.</i>, Opp.,
+ 647; also <i>Herodot.</i>, I, 138.</p>
+
+ <p class="footnote"> <a name="footnote_190-2" id="footnote_190-2"></a>
+ <a href="#fnanchor_190-2">[190-2]</a>
+ Thus <i>Aristotle</i>, calls the taking of interest a gain against nature,
+ since money is only a medium of exchange, and cannot produce its like.
+ (Polit., 3, 23, Schn.) Similarly, <i>Plato</i>, De Legg., V, 742, and
+ <i>Seneca</i>, De Benef., VII, 10. Compare, however, <i>Tacit</i>., Annal,
+ XIII, 42 seq. As late a writer as <i>Forbonnais,</i> 1754, accounts for
+ interest thus: Some people hoard their money instead of spending it; hence
+ a scarcity or want of money, and those who need it are obliged, in order
+ to draw it out, to promise to pay interest. (Eléments de Commerce, II, 92
+ ff.)</p>
+
+ <p class="footnote"> <a name="footnote_190-3" id="footnote_190-3"></a>
+ <a href="#fnanchor_190-3">[190-3]</a>
+ Numerous disturbances on account of debt, during the first centuries of
+ the Roman Republic, until finally (compare <i>Livy</i>, VII, 42), the
+ taking of interest was in the year 349 (?) before Christ, entirely
+ prohibited. (<i>Tacit.</i>, Annal. VI, 16.) The public opinion in such
+ matters may be understood from the words of Cato: <i>majores ita in
+ legibus posuerunt, furem dupli condemnari, foeneratorem quadrupli</i>. (De
+ Re rust.) The <i>foenerari</i> compared with the <i>hominem occidere</i>.
+ (<i>Cato</i>, in <i>Cicero</i>, De Off., II, 25.) In the higher stages of
+ civilization little heed was paid to the law, in practice (compare
+ <i>Livy</i>, XXXV, 7; <i>Plut.</i>, Cato, I, 21.), although the democratic
+ party always held fast to the legal perpetuation of the prohibition of
+ interest. (<i>Mommsen</i>, Römisch. Gesch., III, 493.)</p>
+
+ <p class="footnote"> <a name="footnote_190-4" id="footnote_190-4"></a>
+ <a href="#fnanchor_190-4">[190-4]</a>
+ Exod., 22, 25; Levit., 25, 35 ff.; Deuteron., 15, 7 seq.; 23, 19 seq.;
+ Psalms, 15, 5; 109, 11; 112, 5; Proverbs, 28, 8; Jerem., 15, 10;
+ <i>Hes.</i>, 18, 8. After the return from exile, the prohibition was
+ restored. (Net. 5, 1 ff.) Was there, in the long duration of such
+ prescriptions, an educational measure having reference to the peculiar
+ fault towards which the Jewish national character had a special tendency?
+ In Josephus's time even, usury practiced on one's country people was
+ universally despised (Antiq. Jud., IV, 8, 25.), and the Talmud continues
+ it. Compare <i>Michaelis</i>, De Mente ac Ratione Legis M. Usuram
+ prohibentis. In Russia, the orthodox Jews are wont to evade the legal rate
+ of interest by exacting one-half the profit, and estimating it
+ approximately in advance at a probable sum. If, afterwards, the debtor
+ declares under oath that he made no profit, the creditor has no more to
+ say; but then the borrower would lose all credit in the future. (<i>Bonav.
+ Mayer</i>, Die Juden unserer Zeit, 1842, 13 seq.)</p>
+
+ <p class="footnote"> <a name="footnote_190-5" id="footnote_190-5"></a>
+ <a href="#fnanchor_190-5">[190-5]</a>
+ The Mosaic passages, however, only prohibit the taking of interest from
+ poor people of one's own country.</p>
+
+ <p class="footnote"> <a name="footnote_190-6" id="footnote_190-6"></a>
+ <a href="#fnanchor_190-6">[190-6]</a>
+ The prohibition in the Koran, ch. 2, 30, is regularly evaded in Persia, by
+ deducting the proper amount at the moment the loan is made.
+ (<i>Chardin</i>, IV, 157 ff.) Under the Mongolian rulers, it was done by
+ way of preference, by a fictitious sale for cash, at prices out of all
+ proportion. "Why cannot capitalists either buy land or carry on trade?"
+ asked Sultan Gazan, on an occasion when the prohibition of interest was
+ strongly insisted on. (<i>d'Ohsson</i>, Histoire des Mongols, IV,
+ 397.)</p>
+
+ <p class="footnote"> <a name="footnote_190-7" id="footnote_190-7"></a>
+ <a href="#fnanchor_190-7">[190-7]</a>
+ For instance, <i>Luke</i>, 6, 34 ff., where interest is no more prohibited
+ than in <i>Luke</i>, 14, 12 ff., the mutual invitation of friends to a
+ feast. Not less groundless is the supposed allegorical allusion
+ (<i>Matthew</i>, 21, 12) to interest-creditors. Rather might an approval
+ of interest be inferred from <i>Matthew</i>, 25, 27.</p>
+
+ <p class="footnote"> <a name="footnote_190-8" id="footnote_190-8"></a>
+ <a href="#fnanchor_190-8">[190-8]</a>
+ <i>Origen</i>, for instance, would have the creditor take no interest; but
+ exhorts the debtor to return double the amount unasked. (Homil., III, ad.
+ Ps., § 37.) Hence there is here no condemnation of interest, but only an
+ effort to transform all legal relations into relations of love. Quite the
+ reverse in <i>Lactant.</i>, Instit., VI, 12; <i>Basil</i>, ad. Matth., 5
+ ff.; <i>Ambrose</i>, De Off., III, 3; <i>Chrysost.</i>, ad. Matth. Hom.,
+ 56; Tim., VII, 373 ff. (Paris, 1727); <i>Hieronym.</i>, ad. Ezech., V, 367
+ c. (Francof, 1684); <i>Augustin.</i>, Epist., 54. Even <i>Cyprian</i>,
+ 183, 318 (Paris, 1726).</p>
+
+<p class="p2 center"><a name="S191"></a>SECTION CXCI.</p>
+
+<p class="center smaller">INTEREST-POLICY.&mdash;THE CANON LAW, etc.</p>
+
+<p>The canon law, from the first, endeavored to prevent contracts for
+interest. We may even say that the prohibition of interest-usury is the
+key-stone of the whole system of the political economy of the <i>Corpus
+Juris Canonici</i>. The development of that law coincides, as to time, with
+the senility of the Roman Empire and the childhood of modern nations.<a
+name="fnanchor_191-1" id="fnanchor_191-1"></a><a href="#footnote_191-1"
+class="fnanchor">[191-1]</a> In the <span class='pagenum'>[Pg 131]</span>
+golden age of papal power, every interest-creditor was refused the
+communion, the <i>testamenti factio</i> and the right of ecclesiastical
+burial. Proceedings at law could not be instituted for the recovery of the
+principal debt until the creditor had restored all the interest obtained.
+In the council of Vienna, in 1311, it was declared heresy to defend the
+taking of interest. The universal antipathy of the church towards the
+growing importance of the <i>bourgeoisie</i>,<a name="fnanchor_191-2"
+id="fnanchor_191-2"></a><a href="#footnote_191-2" class=
+"fnanchor">[191-2]</a> and the desire to give the spiritual courts an
+extensive jurisdiction in litigated cases, may have contributed largely to
+the adoption of these measures. In later medieval times, the secular power
+offered its services to execute these laws;<a name="fnanchor_191-3"
+id="fnanchor_191-3"></a><a href="#footnote_191-3" class=
+"fnanchor">[191-3]</a> and, to judge of what public <span class=
+'pagenum'>[Pg 132]</span> opinion in this matter was, we need only call to
+mind the decided disapproval of interest by Dante, Luther and
+Shakespeare.<a name="fnanchor_191-4" id="fnanchor_191-4"></a><a href=
+"#footnote_191-4" class="fnanchor">[191-4]</a></p>
+
+<p>The <i>Weddeschat</i>, a species of pledge or loan on security,
+constituted the transition from this state of things to the modern economic
+system of interest. The <i>Weddeschat</i> was a sale with a reserved right
+of redemption, by which the debtor gave his creditor the use and enjoyment
+of a piece of land a sort of interest in kind, but which he could at any
+time recover back, by payment of the principal. This was not very
+oppressive on the debtor, as he was the only party who could recall the
+contract.<a name="fnanchor_191-5" id="fnanchor_191-5"></a><a
+href="#footnote_191-5" class="fnanchor">[191-5]</a> In a higher stage of
+civilization, <span class='pagenum'>[Pg 133]</span> indeed the continuance
+of this species of land-pledge would be exceedingly disadvantageous, since
+the momentary possessor of a piece of land which might be bought back by
+another person at any time at a price fixed in advance, would scarcely
+think of improving it.<a name="fnanchor_191-6" id="fnanchor_191-6"></a><a
+href="#footnote_191-6" class="fnanchor">[191-6]</a></p>
+
+<p>And so, the introduction of rent-purchase (<i>Rentekauf</i>) was an
+important step in advance: the incumbrancing of a piece of land which
+remained in the possession of the debtor with an interest in kind paid to
+the creditor. The latter could never claim anything further, while the
+debtor and his heirs might redeem the land from this interest-incumbrance
+by paying back the purchase money.<a name="fnanchor_191-7"
+id="fnanchor_191-7"></a><a href="#footnote_191-7"
+class="fnanchor">[191-7]</a> As the Pope, on the 19th of January, 1569,
+renewed, in express terms, the prohibition of all interest not based on
+rent-purchase, so did the police ordinances of the Empire, of the sixteenth
+century, declare it to be the only lawful form of loaning at interest;
+provided, always, that only the debtor could demand the cancellation of
+<span class='pagenum'>[Pg 134]</span> the contract.<a name="fnanchor_191-8"
+id="fnanchor_191-8"></a><a href="#footnote_191-8"
+class="fnanchor">[191-8]</a> We find, however, that, on the whole, at least
+Protestant countries had, before 1654, adopted the modern Roman law
+relating to interest.<a name="fnanchor_191-9" id="fnanchor_191-9"></a><a
+href="#footnote_191-9" class="fnanchor">[191-9]</a> <a
+name="fnanchor_191-10" id="fnanchor_191-10"></a><a href="#footnote_191-10"
+class="fnanchor">[191-10]</a></p>
+
+<p><span class='pagenum'>[Pg 135]</span>However, the long persistence of
+the prohibition of the canon law in relation to interest, even with the
+refuge afforded by the introduction of the rent-purchase system, and of
+dormant partnerships (<i>Commanditen</i>) etc., so common in the sixteenth
+century,<a name="fnanchor_191-11" id="fnanchor_191-11"></a><a
+href="#footnote_191-11" class="fnanchor">[191-11]</a> would be
+unintelligible, if, contemporaneously, the Jews did not carry on an
+important and somewhat free trade in capital,<a name="fnanchor_191-12"
+id="fnanchor_191-12"></a><a href="#footnote_191-12" class=
+"fnanchor">[191-12]</a> precisely as the Armenians, Hindoos and Jews do in
+the Mohammedan world of to-day.</p>
+
+ <p class="footnote"> <a name="footnote_191-1" id="footnote_191-1"></a>
+ <a href="#fnanchor_191-1">[191-1]</a>
+ The apostolic canons and several decrees of councils of the fourth century
+ prohibit the taking of interest by the clergy. A Spanish provincial
+ council dared, in 313, to extend the prohibition to the laity. Pope Leo I.
+ condemned the taking of interest by the laity also, but only in the form
+ of a moral law. (443.) The synod of Constantinople (814) punished the
+ violation of the prohibition with excommunication. See <i>Thomas
+ Aquin.</i> (ob. 1274.) De Usuris, in the Quæstiones disputatae et quod
+ libetales. The canon law, however, always permitted delay-interest
+ (<i>Verzugszinsen</i>), and Gregory IX, allowed <i>justa et moderata
+ expensa et congruam satisfactionem damnorum</i> to be taken into account,
+ (c. 17, X.) De Fora Comp. II, 2. A tacit recognition of the productiveness
+ of capital is to be found in c. 7, X. De Donatt. inter. Virum. cett. IV,
+ 20; and the later schoolmen, <i>Antonin</i> and <i>Bernhardin</i>, (ob.
+ 1459 and 144) are pretty clear on the point. But <i>Albertus Magnus</i>
+ had already recognized the <i>damnum emergens</i> and <i>Thomas
+ Aquinas</i> the <i>lucrum cessans</i> as causes of interest. (Tübinger
+ Zeitschr., 1869, 151, 159, 161.) The essentially modern character of Roman
+ law, which, in the form it has finally assumed, is in harmony with a high
+ development of national economy, accounts for the fact that the glosse of
+ <i>Accursius</i> relying on <i>Irnerius</i> and <i>Bulgarus</i> entirely
+ ignores the prohibition of interest. For a similar reason, in the 16th
+ century, <i>Donellus</i> and <i>Cujacius</i> stand entirely on Roman
+ ground. In the interval, indeed, men like <i>Bartolus</i> and
+ <i>Baldus</i> were not disquieted by the canon law. (<i>Endemann</i>,
+ Studien in der Römisch-Canonischen Wirtchaftsund Rechtslehre, I, 18, 27
+ seq. 61.) Compare the rich historical material in <i>Salmasius</i>, De
+ Usuris, 1638; De Modo Usurarum, 1639, and De Mutuo, 1640.</p>
+
+ <p class="footnote"> <a name="footnote_191-2" id="footnote_191-2"></a>
+ <a href="#fnanchor_191-2">[191-2]</a>
+ <i>A. Thierry</i>, Lettres sur l'Histoire de France, éd. 2., 248 ff.</p>
+
+ <p class="footnote"> <a name="footnote_191-3" id="footnote_191-3"></a>
+ <a href="#fnanchor_191-3">[191-3]</a>
+ Thus the emperor Basil, in the year 867, as <i>Justinian</i> had before
+ him, forbade the further payment of interest, once the amount already paid
+ equaled the principal. (L. 29 seq.; Cod. IV, 32, Nov., 121, 2.) Compare
+ Sachsenspiegel, I, 54. <i>Edward the Confessor</i> is said to have issued
+ the first prohibition of interest. (<i>Anderson</i>, Origin of Commerce,
+ a. 1045.) <i>Edward III.</i> forbade all interest as the ruin of commerce.
+ (Idem a., 1341.) About 1391, the lower House had its zeal aroused against
+ the "shameful vice of usury;" and again, in 1488, all interest on money
+ and all rent-purchases stipulated for on unlawful conditions, were
+ threatened with a fine of £20, the pillory, and six months imprisonment.
+ (<i>Anderson</i>, a., 1488.) In France, the edict of Philip IV. of 1312.
+ Compare <i>Beaumanoir</i>, Coûtumes, ch. 67, des Usures, No. 2.</p>
+
+ <p class="footnote"> <a name="footnote_191-4" id="footnote_191-4"></a>
+ <a href="#fnanchor_191-4">[191-4]</a>
+ <i>Dante</i>, Inferno, XI, 106 ff., suggests that interest-creditors had
+ violated the command of <i>Moses</i>, I, 3. <i>Macchiavelli</i> seems to
+ judge otherwise: Compare Istoria Fior., VII, a, 1464; VIII, a, 1478. Very
+ interesting discussions on the legitimateness of the taking of interest in
+ 1353 seq., in which the Dominicans, up to the time of <i>Savonarola</i>,
+ defended the strictest opinion. (<i>M. Villan</i>, III, 106.)
+ <i>Luther</i>, Tract on Trade and Money, 1524, and Sermon on Usury, 1519.
+ Later still, <i>Luther</i> became more moderate. Thus, in his letter to
+ the Danzig counsel, 1525, in <i>Neumann</i>, Geschichte des Wuchers in
+ Deutschland, 617 ff., in which, for instance, he blames the forcible
+ carrying out of interest-prohibitions, draws a distinction between rich
+ and poor, etc. So, too, in his letter: An die Pfarrherren, wider den
+ Wucher zu predigen, 1540. <i>Melanchthon</i>, Phil. moral., 137 ff., is
+ also more moderate. <i>Calvin</i> was clearer in this matter, and no
+ longer recognized the canonical prohibition of interest. (Epistolæ et
+ Responsa, Hanov., 1597, epist. 383.) Similarly <i>Zwinglius</i>, who will
+ not praise interest, but considers it a natural consequence of property
+ (Opp. ed. Tugur., 1530, I, 319 ff.), and even <i>Erasmus</i>, ad. Evang.
+ Luc., 6, 44. Adagia v. Usuræ nautt. In <i>Shakespeare</i>, compare
+ Merchant of Venice. <i>Bodinus</i> also rejects on principle, even Roman
+ interest, which he held to be 1½ per cent. a year: De Republ., 1584, V. 2.
+ Even the practical Dutch excluded the so-called "table-keepers," from the
+ communion up to 1657. Compare the contests hereon in <i>Laspeyres</i>,
+ Gesch. d. volkswirthsch. Ansich. d. Niederl., 258 ff.</p>
+
+ <p class="footnote"> <a name="footnote_191-5" id="footnote_191-5"></a>
+ <a href="#fnanchor_191-5">[191-5]</a>
+ The mutual right of cancellation (<i>Kündbarkeit</i>) in the case of these
+ contracts during periods poor in capital and credit, would easily have
+ ruined the debtor. Compare <i>J. Möser</i>, Patr. Ph., II, No. 18. Hence
+ municipal rights in the latter part of the middle ages, which in many
+ other respects are so antagonistic to Rome, have seldom anything to object
+ to its measures in this matter.</p>
+
+ <p class="footnote"> <a name="footnote_191-6" id="footnote_191-6"></a>
+ <a href="#fnanchor_191-6">[191-6]</a>
+ A reason why, as <i>A. Strüver</i> remarks, the Church which was more a
+ creditor than a debtor, never approved the Weddeschat above mentioned.</p>
+
+ <p class="footnote"> <a name="footnote_191-7" id="footnote_191-7"></a>
+ <a href="#fnanchor_191-7">[191-7]</a>
+ The institution of rent-purchase (<i>Rentekauf</i>) was already developed
+ in the Hanse cities at the beginning of the fourteenth century.
+ (<i>Stobbe</i>, in the Zeitschr. f. deutsches Recht, XIX, 189 ff.) About
+ 1420, the bishops of Silesia inquired of the Pope, whether such contracts
+ which had been the practice in Silesia for a century were lawful. The
+ answer was a favorable one, although he left the rate of interest free in
+ this particular case (Extr. Com. III, 5, 1, 2); after <i>Alexander
+ IV.</i>, however, as early as 1258, had instructed inquisitors not to take
+ part in litigations concerning usurious contracts. Formerly all such
+ contracts were prohibited in express terms. (Decret. Greg., V. 19, 1, 2),
+ although, in France, the ordinances of Louis IX. and Louis X. (1254 and
+ 1315) had established fixed rates of interest therefor. Between pledge and
+ rent-purchase, the right of the (virtual) loaner to expel the (virtual)
+ borrower, which after fell into disquietude, occupies, so to speak, a
+ middle place. (Compare <i>Eichhorn</i>, D. St.- und R.-Gesch., II, § 361,
+ a III, § 450.) It was decreed, in France, in 1565, that all rent in kind
+ should be converted into money rent. (<i>Warnkönig</i>, Franz., St.- und
+ R.-Gesch., II, 585 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_191-8" id="footnote_191-8"></a>
+ <a href="#fnanchor_191-8">[191-8]</a>
+ Magnum Bullar. Roman., II, 295.</p>
+
+ <p class="footnote"> <a name="footnote_191-9" id="footnote_191-9"></a>
+ <a href="#fnanchor_191-9">[191-9]</a>
+ A Prussian law allowing interest even without a contract of rent-purchase
+ as far back as 1385. (<i>Voigt</i>, Geschich. von Preussen, V, 467.) In
+ Marseilles, in 1406, a rate of interest of ten per cent. allowed.
+ (<i>Anderson</i>, Origin of Commerce, s. a.) Likewise in England, 37 Henry
+ VIII., c. 9. In Brandenburg, 1565, 6 per cent. (<i>Mylius</i>, C. C.,
+ March, II, 1, 11.) A retrograde step by 5 and 6 Edward VI., c. 20; by
+ which all interest was again prohibited. These laws had, practically, the
+ effect of increasing interest to 14 per cent., and were therefore repealed
+ in 1571. How unnatural the prohibition was is apparent from the fact that
+ by 4 and 5 Philip and Mary, c. 2, the possessor of 1,000 marks was
+ estimated equal to a person with £200 annual income. In Denmark, the
+ taking of interest at 5 per cent. was allowed in 1554, since "although it
+ is contrary to God's command, yet [according to an opinion given by
+ <i>Melanchthon</i>] this commerce cannot be entirely abolished."
+ (<i>Kolderup-Rosenvinge's</i> Dänische R. G., in <i>Homeyer</i>, § 142.)
+ Similar views of the elector Augustus, 1583. (Cod. August 1, 139 ff.)</p>
+
+ <p class="footnote">The German Empire, in 1600, allowed the debtor to
+ contract that, in case of delay, the contract might be declared annulled.
+ In France, on the other hand, even during the 18th century, nearly all
+ loans were made in the form of <i>rent-purchase</i> (<i>Law</i>, Trade and
+ Money, 127), and the creditor could declare the contract void only in case
+ the debtor did not pay him the rent. (<i>Warnkönig</i>, Franz. R. G., II,
+ 585 ff.) For strictly Catholic countries, the prohibition relating to the
+ taking of interest still really remains. However, <i>Leo X.'s</i> bull,
+ Inter multiplices, exempts the so-called <i>monti di pietà</i>, and by
+ this means put obstacles in the way of saving, and promoted real usury. Of
+ this last, <i>Niebuhr</i>, Briefe, II, 399, adduces very striking
+ instances from the Pope's own temporal dominion. In the case of pledge,
+ even 12 per cent. per annum is required. (Rom im Jahr, 1833, 163.) Yet, in
+ 1830, the Poenitentiaria Romana instructed the clergy, without, however,
+ deciding the chief question, not to disquiet people any longer in the
+ confessional who had taken interest. (<i>Guillaumin</i>, Dictionnaire de
+ l'Economie politique, art. usure.) On the Russian Sect,
+ <i>Staroverzen</i>, which still condemns the taking of interest, see
+ <i>Storch</i>, Handbuch, II, 19. By the Russian government it was
+ permitted very early. <i>Ewers</i>, Ältestes Recht der R., 323 seq.</p>
+
+ <p class="footnote"> <a name="footnote_191-10" id="footnote_191-10"></a>
+ <a href="#fnanchor_191-10">[191-10]</a>
+ The first scientific defense of interest is generally considered to be
+ that of <i>Salmasius</i>, loc. cit. Yet <i>Bacon</i>, Sermones fideles, C.
+ 39 (after 1539), and at bottom also <i>H. Grotius</i>, De Jure Belli et
+ Pacis, 1626, taught that it was lawful to take interest in so far as it
+ was not against the love due to one's neighbor (<i>Endemann</i>, loc.
+ cit., I, 62 ff.), and <i>Besold</i>, Quaestiones aliquot de Usuris, 1598,
+ was as near the truth as <i>Salmasius</i>.<a name= "fnanchor_TN24" id=
+ "fnanchor_TN24"></a><a href= "#footnote_TN24" class= "fnanchor">[TN
+ 24]</a> Compare <i>supra</i>, note 4. How earnestly <i>North</i> and
+ <i>Locke</i> labored against the lowering of interest by governmental
+ interference, see <i>Roscher</i>, Z. Gesch. der engl. Volkswirths., 90,
+ 102 ff. The best writers, in strictly Catholic countries, did violence to
+ themselves in this matter for a long time after. Thus <i>Galiani</i>,
+ Della Moneta, II, I seq.; and one cannot help being greatly surprised at
+ witnessing the subtleties which <i>Turgot</i>, Mémoire sur le Prêt
+ d'Argent, 1769, had to have recourse to, to prove the clearest matters.
+ Thus: at the moment of the loan, a sum of money is exchanged against the
+ mere promise of the other party, which is certainly less valuable. [If it
+ were not, why should he borrow?] This difference must, therefore, be made
+ up in interest, etc. <i>Mirabeau</i> even was a decided opponent of
+ interest. (Philos. rurale, ch. 6.) Compare, however, the theological
+ defense by <i>Viaixnes</i>, 1728, in the Traité des Prêts de Commerce,
+ Amsterdam, 1759, IV, 19 ff.</p>
+
+ <p class="footnote"> <a name="footnote_191-11" id="footnote_191-11"></a>
+ <a href="#fnanchor_191-11">[191-11]</a>
+ Of course, evaded in a thousand ways in practical life. Thus, for
+ instance, people gave wheat, other commodities, and even uncoined gold and
+ silver as loans, and had what interest they pleased promised them. In
+ alienating the capital, they might stipulate <i>à fonds perdu</i>, as they
+ thought best. (Turgot, I, c. § 29.) When debtors had promised under oath
+ to make no complaint, the church ordered that they should be helped
+ officially. When the temporal power showed itself lax, Alexander III.
+ decreed that such questions should be brought before the spiritual courts.
+ (Decret. Greg. V., tit. 19; 13 <i>Innocent</i>, Epist., VIII, 16; X, 61.)
+ In England, <i>Richard of Cornwall</i> obtained a monopoly of the whole
+ loaning business. (<i>Matth. Paris</i>, ed. 1694, 639: compare, also, 20
+ Henry III., 5.), from which fact the existence of the custom of taking
+ interest about 1235, is apparent. Cases in which English kings borrowed
+ and promised payment back <i>cum damnis, expensis et interesse:</i>
+ Anderson, Origin of Commerce, a. 1274, 1339.</p>
+
+ <p class="footnote"> <a name="footnote_191-12" id="footnote_191-12"></a>
+ <a href="#fnanchor_191-12">[191-12]</a>
+ Compare <i>Gioja</i>, Nuovo Prospetto, III, 190. The canon law desired to
+ put an interdict on their taking interest also: Decret. Greg., V, tit. 19,
+ 12, 18. Frequently, also, a minimum of interest was provided for them:
+ Ordonnances de la Fr., L. 53 seq. II, 575. Receuil des anciennes, Lois, I,
+ 149, 152. John of France extended this to four <i>deniers</i> per
+ <i>livre</i> per week, that is, annually 86-2/3 per cent.! (<i>J. B.
+ Say</i>, Traité II, ch. 8.) In Austria, in 1244, 174 per cent. allowed!
+ (<i>Rizy</i>, Ueber Zinstaxen und Wuchergesetze, 1859, 72 ff.)</p>
+
+
+<p class="p2 center"><a name="S192"></a>SECTION CXCII.<span
+class='pagenum'>[Pg 136]</span></p>
+
+<p class="center smaller">INTEREST-POLICY.&mdash;GOVERNMENT
+INTERFERENCE.&mdash;FIXED RATES.</p>
+
+<p>Instead of the medieval prohibition of interest, most modern states have
+established fixed rates of interest, the exceeding or evasion of which, by
+contract or otherwise, is declared null and void, and is usually punishable
+as usury.<a name="fnanchor_192-1" id="fnanchor_192-1"></a><a
+href="#footnote_192-1" class="fnanchor">[192-1]</a> If the fixing of the
+rate is intended to depress the rate of interest customary in the
+country,<a name="fnanchor_192-2" id="fnanchor_192-2"></a><a
+href="#footnote_192-2" class="fnanchor">[192-2]</a><a name="fnanchor_192-3"
+id="fnanchor_192-3"></a> <a href="#footnote_192-3" class="fnanchor">[192-3]
+</a> it uniformly fails of its object. If <span class='pagenum'>[Pg
+137]</span> control were great enough, vigilant and rigid enough, which is
+scarcely imaginable, to prevent all violations of the law, it is certain
+that less capital would be loaned than had been, for the reason that every
+owner of capital would be largely interested in employing his capital in
+production of his own. More capital, too, would go into foreign parts, and
+there would be less saved by those not engaged in any enterprise of their
+own. All of this would happen to the undoubted prejudice of the nation's
+entire economy.<a name="fnanchor_192-4" id="fnanchor_192-4"></a><a
+href="#footnote_192-4" class="fnanchor">[192-4]</a> <a name="fnanchor_192-5"
+id="fnanchor_192-5"></a> <a href="#footnote_192-5" class=
+"fnanchor">[192-5]</a></p>
+
+<p>If, on the other hand, the control by the government be not great
+enough, the law would, in most cases, be evaded; especially as each party,
+creditor as well as debtor, would find it to his advantage to evade it. The
+latter, who otherwise <span class='pagenum'>[Pg 138]</span> would not be
+able to borrow at all, is, as a rule, more in need of obtaining the loan,
+than the creditor is to invest his capital. How easily, therefore, might he
+be induced to bind himself by oath or by word of honor!<a name=
+"fnanchor_192-6" id="fnanchor_192-6"></a><a href="#footnote_192-6"
+class="fnanchor">[192-6]</a> He would, moreover, be compelled to pay the
+creditor not only the natural interest and the ordinary insurance premium,
+but also for the special risk he runs when he violates the law threatening
+him with a severe penalty.<a name= "fnanchor_192-7" id=
+"fnanchor_192-7"></a><a href= "#footnote_192-7"
+class="fnanchor">[192-7]</a> Hence the last result is either a material
+enhancement of the difficulty of obtaining loans or an enhancement of the
+rate of interest.<a name= "fnanchor_192-8" id= "fnanchor_192-8"></a><a
+href= "#footnote_192-8" class= "fnanchor">[192-8] </a></p>
+
+ <p class="footnote"> <a name="footnote_192-1" id="footnote_192-1"></a>
+ <a href="#fnanchor_192-1">[192-1]</a>
+ This is, historically, the second meaning of the word usury, while in the
+ middle ages, for instance in England, under Elizabeth (<i>D. Hume</i>),
+ the taking of any interest whatever was called usury. Science should
+ employ this word only in the sense used in § 113.</p>
+
+ <p class="footnote"> <a name="footnote_192-2" id="footnote_192-2"></a>
+ <a href="#fnanchor_192-2">[192-2]</a>
+ In Switzerland, at the end of the 17th century, not only were those
+ punished who took more interest than the law prescribed, but those who
+ took less. (Compare Rechtsquellen von Basel, Stadt und Land, 1865, Bd.
+ II.)</p>
+
+ <p class="footnote"> <a name="footnote_192-3" id="footnote_192-3"></a>
+ <a href="#fnanchor_192-3">[192-3]</a>
+ Fixed rates of interest of this kind are to be accounted for in part by a
+ still continuing aversion of the legislator for interest in general; in
+ part, by the opinion which prevails that precisely the most useful and
+ most productive classes might be elevated by an artificial lowness of the
+ rate of interest. (But most especially the government itself, which
+ borrows more than it lends.) When Louis XIV. about 1665, lowered the rate
+ of interest to 5 per cent., he claimed in the preamble to his decree that
+ it would have the effect of promoting the welfare of landowners and
+ business men, and of preventing idleness. Similarly <i>Sully</i>,
+ Economies royales, L, XII. And so <i>J. Child</i>, Discourse of Trade, 69
+ ff., says that every lowering of the rate of interest, by law, produced a
+ completely corresponding increase of the national wealth. He says, since
+ the first reduction (?) of interest in 1545, the national wealth increased
+ six fold; since the last, in 1651, the number of coaches increased a
+ hundred fold; chamber-maids wore now better clothes than ladies formerly;
+ on 'Change there were more persons with a fortune of £10,000 than before
+ with £1,000. Similarly <i>Culpeper</i>: compare <i>Roscher</i>, Z.
+ Geschichte der eng. Volkswirthsch., 57 ff. Later, the French generally
+ thought that a lowering of the rate of interest would prove injurious to
+ the <i>noblesse de la robe</i>; hence even in 1634, parliament was opposed
+ to it. (<i>Forbonnais</i>, Recherches et Considérations, I, 48, 226.)
+ <i>Darjes</i> says that information of all loans of capital should be made
+ to the police authorities, and that the authorities might compel payment
+ and the loaning of the principal over again to parties in need of capital.
+ (Erste Gründe, 426 seq.) Something analogous<a name= "fnanchor_TN25" id=
+ "fnanchor_TN25"></a><a href= "#footnote_TN25" class= "fnanchor">[TN
+ 25]</a> practically provided for by the Würtemberg <i>Landesordnungen</i>
+ of the 16th century. (Compare also <i>von Schröder</i>, F. Schatz- und
+ Rentkammer, XXV, 3.)</p>
+
+ <p class="footnote"> <a name="footnote_192-4" id="footnote_192-4"></a>
+ <a href="#fnanchor_192-4">[192-4]</a>
+ Precisely a high rate of interest is a powerful incentive to saving, and
+ to the importation of capital.</p>
+
+ <p class="footnote"> <a name="footnote_192-5" id="footnote_192-5"></a>
+ <a href="#fnanchor_192-5">[192-5]</a>
+ <i>Usurae palliatae</i>, interest taken out of the capital, or
+ stem-interest, called also money-usury in contradistinction to patent
+ interest-usury. To this category belong the written acknowledgments of
+ indebtedness to a larger amount than that actually received; acknowledging
+ it in a higher kind of money than that in which the loan was made; the
+ compulsory taking by the debtor of commodities at a disproportionately
+ high price, in the place of money, or at a disproportionately low one, by
+ the creditor. See the enumeration of such things in the police regulations
+ of the empire, 1530, art. 26, and 1548, art. 17. Thus, in Paris, jewels
+ are "sold" to students hard-pressed for money, which immediately find
+ their way to the <i>monts de piété</i>, and have to be paid for some time
+ after to the usurious "seller," at a most exorbitant price. The person who
+ loans $100 at 6 per cent., and retains the interest for the next following
+ year from the date of the loan, takes in reality nearly 6.4 per cent.
+ Fraudulent accessory expenses of all kinds, <i>faux frais</i>, expenses of
+ registration, for prolongation, and extinguishment, etc. Here belong,
+ also, the provisions introduced into contracts to make redemption more
+ difficult, the fixing of terms of payment in such a manner that the debtor
+ is almost forced to let them slip by&mdash;called "usury in the
+ conditions" in Austria. Remarkable instances from the 16th century in
+ <i>Vasco</i>, Usura libera, § 57 ff. Recently, <i>Braun</i> und
+ <i>Wirth</i>, Die Zinswuchergesetze, 1856, 190 ff. In view of the manifold
+ business transactions behind which the interest-usurer may take refuge,
+ the complete prevention of the latter would break the legs of commerce
+ (loc. cit., 145 ff.).</p>
+
+ <p class="footnote"> <a name="footnote_192-6" id="footnote_192-6"></a>
+ <a href="#fnanchor_192-6">[192-6]</a>
+ If the state, by annulling such promises, should incite the people to
+ violate them, it would be a frightful step towards the demoralization of
+ the nation: "thus rewarding men for obtaining the property of others by
+ false promises, and then, not only refusing payment, but invoking legal
+ penalties on those who have helped them in their need." (<i>J. S.
+ Mill</i>, Principles, V, ch. 10, 2.) Besides, the Austrian usury law of
+ 1803 punishes the borrower also as a spendthrift, and imprisons him for
+ six months (§ 18), or else it designates where he shall make his domicile
+ (<i>Ortsverweisung</i>). Modern loaning on drafts and bills of exchange,
+ the acceptance of which is forged with the knowledge of the creditor,
+ corresponds to what <i>Plutarch</i>, Quaest., Gr., 53, relates of the
+ Cretans, who had, especially in later times, the worst possible reputation
+ for avarice and dishonesty. (<i>Polyb.</i>, VI, 46. <i>Paul</i> to Titus,
+ I, 12.)</p>
+
+ <p class="footnote"> <a name="footnote_192-7" id="footnote_192-7"></a>
+ <a href="#fnanchor_192-7">[192-7]</a>
+ He must insure him against the usury laws. (<i>Adam Smith.</i>) According
+ to <i>Krug</i>, Staatsökonomie, the usury laws should be called so because
+ they promote usury, not because they prevent it. Compare to some extent,
+ <i>Montesquieu</i>, Esprit des Lois, XXII, 18 ff.</p>
+
+ <p class="footnote"> <a name="footnote_192-8" id="footnote_192-8"></a>
+ <a href="#fnanchor_192-8">[192-8]</a>
+ When Catherine II. reduced the rate of interest in Livonia, in 1785, from
+ 6 to 5 per cent., it soon became impossible, even on the best security, to
+ borrow at less than 7 per cent. (<i>Storch</i>, Handbuch, II, 26.) And so,
+ when in New York, in 1717, the rate of interest was reduced to 6 per
+ cent., it became necessary, the following year, to raise it again to 8 per
+ cent. The merchants, themselves, petitioned that it might be so raised,
+ because they found it impossible to get any loans whatever.
+ (<i>Ebeling</i>, Geschichte und Erdbeschreib. von Nord Amerika, III, 152.)
+ In Chili, the legal rate of interest is 6 per cent., the actual rate,
+ however, never under 12 per cent., and frequently 18 to 24 per cent. In
+ Peru, on the other hand, the repeal of the usury laws rapidly reduced the
+ rate of interest from 50 to 24 per cent., and finally to 12.
+ (<i>Pöppig</i>, I, 118.)</p>
+
+<p class="p2 center"><a name="S193"></a>SECTION CXCIII.<span
+class='pagenum'>[Pg 139]</span></p>
+
+<p class="center smaller">INTEREST-POLICY.&mdash;EFFORTS TO AVOID THE EVIL
+EFFECTS OF A FIXED RATE.</p>
+
+<p>It has been thought possible to avoid the evil effects of a fixed legal
+rate of interest, by regulating it in such a way as to make it coincident
+with the rate customary in the country.<a name="fnanchor_193-1"
+id="fnanchor_193-1"></a><a href="#footnote_193-1" class=
+"fnanchor">[193-1]</a> But there are numberless transactions in which an
+insurance premium, or premium for risk or certain expenses of
+administration<a name="fnanchor_193-2" id="fnanchor_193-2"></a><a
+href="#footnote_193-2" class="fnanchor">[193-2]</a> on the part of the
+loaner is inseparable from the true interest. Here, even the law which
+entered most into detail could never properly provide for the infinite
+gradations or shades of risk and trouble; and the rate in a great many
+transactions would, therefore, be placed below the natural height. Turgot
+long since observed that the value of a promise of future payment is
+different not only for different persons, but at different times. Thus, for
+instance, it is really less after there have been numerous cases of
+bankruptcy than at other times.<a name="fnanchor_193-3" id=
+"fnanchor_193-3"></a><a href="#footnote_193-3" class=
+"fnanchor">[193-3]</a> If, now, it was desired to fix the maximum rate of
+interest in such a way that it should equal the rate customary in the
+country, where the security is good, the best real property security for
+instance, the consequence would be, that those persons who had no such
+guaranty to offer (leaving the loaning "among brothers" out of the
+question) would either be unable to borrow money at all, or, by evading the
+law, only at an artificially higher rate. Hence the legislator causes
+injury where he wished to favor. This has been observed in England in
+almost all past commercial crises.<a name="fnanchor_193-4"
+id= "fnanchor_193-4"></a><a href="#footnote_193-4" class=
+"fnanchor">[193-4]</a> The man who <span class='pagenum'>[Pg 140]</span>
+makes it his business to loan his capital, on short time and in small sums,
+undertakes a trade which the examination, and the surveillance of a large
+number of small debtors, and the necessity of reinvesting the many small
+sums paid him, render exceedingly<a name= "fnanchor_TN26" id=
+"fnanchor_TN26"></a><a href= "#footnote_TN26" class= "fnanchor">[TN 26]</a>
+troublesome and disagreeable. Moreover, in loaning on short terms of
+payment, there is always danger that his money may lie idle for some length
+of time. These are reasons sufficient, why, in such cases, when the whole
+compensation is denominated interest, a rate of interest greater than usual
+in the country is equitable and even necessary. (§ 179.)<a
+name="fnanchor_193-5" id="fnanchor_193-5"></a><a href= "#footnote_193-5"
+class="fnanchor">[193-5]</a></p>
+
+<p>It has been frequently suggested that spendthrifts and adventurers
+should be hindered using, or to speak more correctly, abusing the nation's
+wealth by laws prohibiting the rate of interest at which they might be
+expected to obtain credit; and this in the interest alike of the creditors
+they might possibly find and in their own.<a name="fnanchor_193-6"
+id="fnanchor_193-6"></a><a href="#footnote_193-6" class=
+"fnanchor">[193-6]</a> But almost every inventor of <span
+class='pagenum'>[Pg 141]</span> genius, from Columbus to Stephenson, has
+been obliged to be considered "an adventurer" for a time by "solid men."
+The law limits him thus, and more especially during the critical period of
+outlay which precedes the undoubted triumph of his idea, to his own means
+or the gifts of others.<a name="fnanchor_193-7" id="fnanchor_193-7"></a> <a
+href="#footnote_193-7" class="fnanchor">[193-7]</a> And how inadequate, as
+rule, are both. The rich are as seldom discoverers, as discoverers are
+skillful supplicants. And, as regards spendthrifts, they may ruin
+themselves in so many thousands of ways, especially by buying or selling,
+and unhindered by the state, that it is scarcely apparent why the one way
+of borrowing should be legally closed to them.<a name="fnanchor_193-8"
+id="fnanchor_193-8"></a><a href="#footnote_193-8" class=
+"fnanchor">[193-8]</a> How is it, if the law itself drives them into the
+hands of a worse class of creditors, and compels them to pay yet a higher
+rate of interest? Are they not simply more rapidly ruined? States,
+themselves, have scarcely ever given any heed to their own usury laws in
+borrowing or loaning.<a name="fnanchor_193-9" id="fnanchor_193-9"></a><a
+href="#footnote_193-9" class="fnanchor">[193-9]</a></p>
+
+ <p class="footnote"> <a name="footnote_193-1" id="footnote_193-1"></a>
+ <a href="#fnanchor_193-1">[193-1]</a>
+ In Austria, in 1803, in loaning on pledge, 4 per cent.; in other loans and
+ in the trade of merchants with one another, 6 per cent. In France, since
+ 1807, with merchants, 6 per cent.; with others, 5. <i>Salmasins</i>, De
+ Mono Usur., c. 1, advises that the maximum should be fixed as high as that
+ usual in the most unfavorable cases. The reduction from such rate, where
+ possible, would regulate itself.</p>
+
+ <p class="footnote"> <a name="footnote_193-2" id="footnote_193-2"></a>
+ <a href="#fnanchor_193-2">[193-2]</a>
+ <i>Petty</i>, Quantulumcunque concerning money, 1682.</p>
+
+ <p class="footnote"> <a name="footnote_193-3" id="footnote_193-3"></a>
+ <a href="#fnanchor_193-3">[193-3]</a>
+ Sur le Prêt d'Argent, § 36.</p>
+
+ <p class="footnote"> <a name="footnote_193-4" id="footnote_193-4"></a>
+ <a href="#fnanchor_193-4">[193-4]</a>
+ How many merchants would have avoided bankruptcy here if they had been
+ allowed to borrow at 8 per cent.! The established rate of 5 per cent. was
+ certainly too low, considering the great demand for capital and the want
+ of confidence at the moment, to permit capital to be loaned at that rate.
+ Many saw themselves compelled to sell their merchandise or evidences of
+ state indebtedness at a loss of 30 per cent., in order to meet their
+ obligations. But the person who, to anticipate the receipts due in 6
+ months, for instance, consents to suffer a loss of 30 per cent., pays, in
+ a certain sense, interest at the rate of 60 per cent. a year. Compare
+ <i>Tooke</i>, Considerations on the State of the Currency, 60, and History
+ of Prices, II, 163, on the Crisis of 1825-26. Since the Bank, least of
+ all, could exceed the legal rate of interest, numberless applications were
+ made to it in times of war in order to obtain the difference between the
+ legal rate and the rate usual in the country. (<i>Thornton</i>, Paper
+ Credit of Great Britain, ch. 10.) Prussia, November 27, 1857, suspended
+ the usury laws for 3 months, on account of the commercial crisis, except
+ the provisions relating to pawn-broker and minors.</p>
+
+ <p class="footnote"> <a name="footnote_193-5" id="footnote_193-5"></a>
+ <a href="#fnanchor_193-5">[193-5]</a>
+ <i>Turgot</i> tells of Parisian "usurers" who made weekly advances to the
+ market women of la Halle, and received for 3 livres, 2 sous interest; that
+ is 173 per cent. a year. The premium for insurance may have been very high
+ here. When such loaners were brought before the courts, and they were
+ sentenced to the galleys, the usual punishment for usury, their debtors
+ came and testified their gratitude by begging for mercy to them! (Mémoire
+ sur le Prêt d'Argent, § 14, 31.) Compare <i>Cantillon</i>, Nature du
+ Commerce, 276.</p>
+
+ <p class="footnote"> <a name="footnote_193-6" id="footnote_193-6"></a>
+ <a href="#fnanchor_193-6">[193-6]</a>
+ Thus, <i>Adam Smith</i>, Wealth of Nations, II, ch. 4. Similarly,
+ <i>Roesler</i> Grundsätze, 495 ff. Compare, <i>per contra</i>, <i>Jer.
+ Bentham</i>, Defense of Usury: showing the Impolicy of the present legal
+ Restraints on the Terms of pecuniary Bargains in Letters to a Friend. To
+ which is added a Letter to Adam Smith on the Discouragement imposed by the
+ above Restraints to the Progress of inventive Industry, 1787; 3 ed.,
+ 1816.</p>
+
+ <p class="footnote"> <a name="footnote_193-7" id="footnote_193-7"></a>
+ <a href="#fnanchor_193-7">[193-7]</a>
+ The first steamboat in the United States was, for a long time, called the
+ "Fulton-folly!"</p>
+
+ <p class="footnote"> <a name="footnote_193-8" id="footnote_193-8"></a>
+ <a href="#fnanchor_193-8">[193-8]</a>
+ It is just as hard to see why only money-capital should have a fixed rate
+ of interest, and not buildings, etc. likewise.</p>
+
+ <p class="footnote"> <a name="footnote_193-9" id="footnote_193-9"></a>
+ <a href="#fnanchor_193-9">[193-9]</a>
+ In Holland, the legal rate of interest was lowered, in 1640, to 5 per
+ cent., and in 1655 to 4; but not since. (<i>Sir J. Child</i>, Discourse of
+ Trade, 151.) Besides, <i>Locke</i>, Considerations on the Lowering of
+ Interest, Works, III, 34, assures us that, in his time, a man in England
+ could make contracts for unlimited interest.</p>
+
+<p class="p2 center"><a name="S194"></a>SECTION CXCIV.</p>
+
+<p class="center smaller">INTEREST-POLICY.&mdash;REPEAL OF THE USURY
+LAWS.</p>
+
+<p>However, the complete repeal of the usury laws<a name="fnanchor_194-1"
+id="fnanchor_194-1"></a><a href="#footnote_194-1" class="fnanchor">[194-1]
+</a> has not <span class='pagenum'>[Pg 142]</span> under all circumstances
+accomplished what it was supposed it would; and the state should take great
+care, lest by an incautious framing of its laws, it should put judges in
+such a position that they may be compelled to coöperate in the execution of
+immoral contracts.<a name="fnanchor_194-2" id="fnanchor_194-2"></a><a
+href="#footnote_194-2" class="fnanchor">[194-2]</a> In the lowest strata,
+so to speak, of the loaning business, the medieval condition continues to
+exist (§ 190) after it has disappeared in the upper. Here, the loan is
+effected scarcely ever for the purposes of production, but most generally
+because of the most urgent necessity; and the debtor is not in a condition,
+from want of education, and especially from his ignorance of arithmetic, to
+estimate the magnitude of the burthen he has undertaken. The business of
+loaning is, under such circumstances, considered dishonorable, to some
+<span class='pagenum'>[Pg 143]</span> extent, by the public. And when a
+business necessary in itself is held disreputable by public opinion, the
+usual result is that bad men alone engage in it.<a name="fnanchor_194-3"
+id="fnanchor_194-3"></a><a href="#footnote_194-3" class="fnanchor">[194-3]
+</a> Real competition which would but fix the natural price is wanting here
+in proportion as the debtor is anxious for secrecy.<a name="fnanchor_194-4"
+id="fnanchor_194-4"></a><a href="#footnote_194-4" class=
+"fnanchor">[194-4]</a></p>
+
+<p>Abuses in this respect are best guarded against by the establishment of
+government loan-institutions, and by the publicity of the administration of
+justice to debtors.<a name="fnanchor_194-5" id="fnanchor_194-5"></a><a
+href="#footnote_194-5" class="fnanchor">[194-5]</a> Besides, every contract
+might be prohibited the terms of which were such that an inexperienced
+borrower could not from them obtain a <span class='pagenum'>[Pg 144]</span>
+clear conception of the burthen he accepts, or which hindered him from
+paying the debt at a proper time.<a name="fnanchor_194-6" id=
+"fnanchor_194-6"></a><a href="#footnote_194-6" class=
+"fnanchor">[194-6]</a></p>
+
+<p>Lastly, there should be a rate of legal interest fixed by the state to
+be charged in such cases as interest is found to be in justice due, but in
+which none is provided for by contract; and this rate should approximate as
+nearly as possible to the rate usual in the country.<a name=
+"fnanchor_194-7" id= "fnanchor_194-7"></a><a href= "#footnote_194-7"
+class= "fnanchor">[194-7]</a> <a name="fnanchor_194-8" id=
+"fnanchor_194-8"></a> <a href= "#footnote_194-8" class=
+"fnanchor">[194-8]</a></p>
+
+ <p class="footnote"> <a name="footnote_194-1" id="footnote_194-1"></a>
+ <a href="#fnanchor_194-1">[194-1]</a>
+ In 1787, Joseph II. abolished the penalties for usury, but allowed the
+ provisions denying a legal remedy, in cases of usurious demand of over 4
+ per cent. for hypothecations, 6 per cent. for bills and 5 per cent. for
+ other loans, to remain. Compare the prize essay by <i>Günther</i>, Versuch
+ einer vollständigen Untersuchung über Wucher und Wuchergesetze, 1790;
+ <i>v. Kees</i>, über die Aufhebung der Wuchergesetze, 1791; <i>Vasco</i>,
+ Usura libera, 1792. The opposite view represented by <i>Ortes</i>, E. N.,
+ II, 24, and <i>v. Sonnenfels</i>, Ueber Wucher und Wuchergesetze, 1789, and
+ zu Herrn <i>von Kees</i>, Abhandlung, etc., 1791. The debates on the
+ repeal of the usury laws in the French Chamber of Deputies, after which
+ <i>Lherbette's</i> motion in favor of their repeal was rejected. In France
+ they were, during the assignat-period of bewilderment virtually, and in
+ 1804-1807 expressly (C. C., Art. 1907), but only provisionally repealed.
+ In Würtemberg, all those having the right to draw bills of exchange were
+ exempted from them in 1839. Since the law of 1848, governing bills of
+ exchange, gave all persons capable of contracting, the right to draw bills
+ of exchange, the usury laws have ceased to have any existence; without
+ much noise before and without much complaint after. (A. Allgem. Ztg., 24
+ März, 1857.) Recent complete or partial repeal of the usury laws: in
+ England, in 1854; in Denmark, in 1855; in Spain, in 1856; Sardinia,
+ Holland, Norway and Geneva, 1857; Oldenburg, 1858; Bremen, 1859; in the
+ kingdoms of Saxony and Sweden, in 1864; Belgium, 1865; Prussia, the North
+ German Confederation,<a name= "fnanchor_TN27" id= "fnanchor_TN27"></a><a
+ href= "#footnote_TN27" class= "fnanchor">[TN 27]</a> and to some extent
+ Austria, in 1867.</p>
+
+ <p class="footnote"> <a name="footnote_194-2" id="footnote_194-2"></a>
+ <a href="#fnanchor_194-2">[194-2]</a>
+ Compare <i>F. X. Funck</i>, Zins und Wucher, 1868, a moral theological
+ treatise which rightly demands a more rigid popular morality in relation
+ to real usury, after the repeal of the usury laws. The recent cases in
+ which courts have juridically acquitted usurers because they could not do
+ otherwise, but have branded them morally, are of very questionable
+ propriety, in view of the facility with which high and usurious rates of
+ interest may be confounded. <i>R. Meyer</i>, Emancipationskampf, I, 78,
+ advises that the capitalist be allowed to ask whatever interest he wishes,
+ but that the state, as judge and executor of the laws, should enforce
+ payment only at a certain rate determined by law.</p>
+
+ <p class="footnote"> <a name="footnote_194-3" id="footnote_194-3"></a>
+ <a href="#fnanchor_194-3">[194-3]</a>
+ Many laws seem to purposely permit this, inasmuch as they allow a rate of
+ interest, higher in proportion as the position of the creditor is less
+ respectable. Thus, formerly, in some places, the Jews might require higher
+ interest than the Christians. Justinian allows <i>personis illustribus</i>
+ only 4 per cent.; ordinary private persons, 6 per cent.; money-changers,
+ etc., 8 per cent. (L. 26, Cod. IV, 32.) On the other hand, according to
+ the Indian legislation of Menu, the Brahman is obliged to confine himself
+ to 2, the warrior to 3, the <i>vaysya</i> to 4, the <i>sudra</i> to 5 per
+ cent. per month at most. (Cap. 8.)</p>
+
+ <p class="footnote"> <a name="footnote_194-4" id="footnote_194-4"></a>
+ <a href="#fnanchor_194-4">[194-4]</a>
+ <i>Turgot</i> considered that only the <i>prêteurs à la petite
+ semaine</i>, pawnbrokers who loaned to hard-pressed people on the confines
+ of the middle class and artisans, and the infamous characters who advanced
+ money to the sons of rich men to spend in dissipation, still passed for
+ usurers. Only the latter are injurious; not, however, because of the high
+ rate of interest they charge, but because they help in a bad cause. (Sur
+ le Prêt d'Argent, § 32.) According to <i>Colquhoun</i>, Police of the
+ Metropolis, 167, there are women in London from whom the hucksteresses
+ borrow 5 shillings every day and return them every evening with ½ shilling
+ interest. Something analogous happens much more frequently in the country,
+ especially in the loaning in kind of productive capital to poor persons.
+ Thus, in Tessin, there are many "iron cattle" which the borrower is
+ obliged to return at their original value, plus an interest of about 36
+ per cent. (<i>Franscini</i>, C. Tessin, 152.) On the Rhine, frequently as
+ much as 200 per cent. a year, is stipulated for in such contracts.
+ <i>Morstadt</i>, der N. Oekonom. Heft., IX, 727.</p>
+
+ <p class="footnote"> <a name="footnote_194-5" id="footnote_194-5"></a>
+ <a href="#fnanchor_194-5">[194-5]</a>
+ Compare <i>J. J. Becher</i>, Polit. Discurs, 1668, 219; <i>v.
+ Schröder</i>, F. Schatz- und Rentkammer, Bd. §§ 123, 133 ff. The first
+ <i>montes pictatis</i> were expressly intended to check the usury of the
+ Jews. Thus, in Florence, in 1495, after the expulsion of the Jews,
+ voluntary contributions were made to found a municipal loaning
+ establishment. Similarly, <i>Tiberius</i>, Tacit. Ann., VI, 16 seq.
+ <i>Count Soden</i>, Nat-Oek., IV, 57; V, 319, advises that all contracts
+ for interest should be recorded in a public registry, under pain of their
+ being held not actionable.</p>
+
+ <p class="footnote"> <a name="footnote_194-6" id="footnote_194-6"></a>
+ <a href="#fnanchor_194-6">[194-6]</a>
+ <i>Günther</i>, loc. cit., thinks that, in every contract in which the
+ rate of interest is masked, its real rate should be expressed under
+ penalty of invalidity. In addition to this, he would have those who have
+ attained their majority put in full control of their fortune only after
+ they had undergone an examination.</p>
+
+ <p class="footnote">It seems opportune that the old prohibition against
+ interest on interest (<i>Cicero</i>, ad. Att., V, 21, and L, 26, Digest,
+ XIV, 6) and the provision that the interest should not be permitted to be
+ greater than the <i>alterum tantum</i> (Digest, l. c.) should be permitted
+ to continue. (Digest, l. c.) Both of these measures were first decreed by
+ Lucullus, for the protection of Asia Minor. Compare § 115. Florentine law,
+ of 1693, that interest in arrears, or that interest on interest beyond 7
+ years, should not be added to the principal without an express contract to
+ that effect. (<i>Vasco</i>, Usura libera, § 155.) In England, the usury
+ laws were by 2 and 3 Victor., c. 37, repealed, but only to the extent of
+ excepting from their provisions bills of not over 12 months, and money
+ loans not over £10. Compare <i>Rau</i>, Lehrbuch II, § 323.</p>
+
+ <p class="footnote"> <a name="footnote_194-7" id="footnote_194-7"></a>
+ <a href="#fnanchor_194-7">[194-7]</a>
+ Compare <i>Locke</i>, Considerations: Works, 10, 32 ff. In Spain, the
+ Council of State is required to regulate the rate of legal interest yearly
+ (law of 1856, art. 8); a thing which, according to <i>Braun</i>, would be
+ better done in each individual case by the judges themselves.
+ (<i>Faucher's</i> Vierteljahrsschrift, 1868, II, 13.)</p>
+
+ <p class="footnote"> <a name="footnote_194-8" id="footnote_194-8"></a>
+ <a href="#fnanchor_194-8">[194-8]</a>
+ In Athens, the rate of interest in general was voluntary from the time of
+ Solon, who, however, did away with slavery for debt. (Lysias adv. Theomn.,
+ 360.) Yet there was a legal rate of interest of 18 per cent. for the case
+ in which a divorced husband delayed the return of his wife's dowry.
+ Compare <i>Böckh</i>, Staatshaushalt der Athener, I, 148.</p>
+
+<p><span class='pagenum'>[Pg 145]</span></p>
+
+<h3 class="p4">CHAPTER V.</h3>
+
+<h3>THE UNDERTAKER'S PROFIT.<br />
+(<i>UNTERNEHMERLOHN.</i>)</h3>
+
+<p class="p2 center"><a name="S195"></a>SECTION CXCV.</p>
+
+<p class="center smaller">THE REWARD OF ENTERPRISE.</p>
+
+<p>The essence of an enterprise or undertaking, in the politico-economical
+sense of the word, consists in this, that the undertaking party engages in
+production for the purpose of commerce, at his own risk. In the earlier
+stages of a nation's economy, the production of consumers is, naturally
+enough, limited chiefly by their own personal wants. Somewhat later, when
+the division of labor has been further developed, the workman produces at
+first, enough to meet occasional determinate "orders;" and still later to
+meet them regularly and as a business. Later yet, and in stages of
+civilization yet higher, especially when the freedom of labor constantly
+grows, as it is wont to, here, and the freedom of capital and trade becomes
+more extensive, enterprise plays a part which grows more important as time
+rolls on, and is usually carried on more at one's own risk.<a
+name="fnanchor_195-1" id="fnanchor_195-1"></a><a href="#footnote_195-1"
+class="fnanchor">[195-1]</a> This transition is a great advance, inasmuch
+as the advantages of the coöperation of labor and of <i>use</i> may be
+utilized in a much higher degree by undertakers (<i>Unternehmer</i>) than
+by producers who labor only to satisfy their own household wants, or to
+meet "orders" already made. <span class='pagenum'>[Pg 146]</span> The
+awakening of latent wants, a matter of the utmost importance to a people
+who would advance in civilization, is something which can enter into the
+mind only of a man endowed with the spirit of enterprise (an undertaker).<a
+name="fnanchor_195-2" id="fnanchor_195-2"></a><a href="#footnote_195-2"
+class="fnanchor">[195-2]</a></p>
+
+<p>While most English political economists have confounded the personal
+gain of the undertaker with the interest on the capital used by him,<a
+name="fnanchor_195-3" id="fnanchor_195-3"></a><a href="#footnote_195-3"
+class="fnanchor">[195-3]</a> many German writers have called the
+"undertaker's earnings" or profit a special, and fourth, branch of the
+national income, coördinate with rent, wages, and the interest on
+capital.<a name="fnanchor_195-4" id="fnanchor_195-4"></a><a
+href="#footnote_195-4" class="fnanchor">[195-4]</a> Yet, the net income of
+every undertaker <span class='pagenum'>[Pg 147]</span> is either the fruit
+of his own land used for purposes of production and of his capital, in
+which case it is subject to the usual laws of development of rent and
+interest; or, it must be considered as wages paid for his labor.<a
+name="fnanchor_195-5" id="fnanchor_195-5"></a><a href="#footnote_195-5"
+class="fnanchor">[195-5]</a> These wages he earns, as a rule, by organizing
+and inspecting the work, calculating the chances of the whole enterprise;
+frequently by, at the same time, keeping the books and acting as cashier;
+and, in the case of small undertakings, as a common fellow-workman.
+(Tradesman, peasant). In every case, however, even when he <span
+class='pagenum'>[Pg 148]</span> puts an agent paid by himself in his place,
+he earns these wages from the fact that his name keeps the whole enterprise
+together; and for the reason that, in the last instance,<a
+name="fnanchor_195-6" id="fnanchor_195-6"></a><a href="#footnote_195-6"
+class="fnanchor">[195-6]</a> he has to bear the care and responsibility
+attending it.<a name="fnanchor_195-7" id="fnanchor_195-7"></a><a
+href="#footnote_195-7" class="fnanchor">[195-7]</a> When a business goes
+wrong, the salaried director or foreman may permit himself to be called on
+to engage in another; but the weary, watchful nights belong to the
+undertaker or man of enterprise, alone; and "how productive such nights
+frequently are!"<a name="fnanchor_195-8" id="fnanchor_195-8"></a><a
+href="#footnote_195-8" class="fnanchor">[195-8]</a></p>
+
+<p>This profit of the undertaker is subject essentially to the same natural
+law as wages in general are; only it differs in this from all other
+branches of income, that it can never be stipulated for in advance. Rather
+does it consist of the surplus which the product of the undertaking affords
+over and above all the rent stipulated for in advance or estimated at the
+rate usual in the country, the interest on capital, and wages of common
+labor.<a name="fnanchor_195-9" id="fnanchor_195-9"></a><a href=
+"#footnote_195-9" class="fnanchor">[195-9]</a></p>
+
+ <p class="footnote"> <a name="footnote_195-1" id="footnote_195-1"></a>
+ <a href="#fnanchor_195-1">[195-1]</a>
+ At first, usually imperfect enterprises in which the shop-instruments,
+ etc., are kept ready for present orders; and then complete or perfect
+ enterprises. (<i>v. Mangoldt</i>, Volkswirthschaftslehre, 255.)</p>
+
+ <p class="footnote"> <a name="footnote_195-2" id="footnote_195-2"></a>
+ <a href="#fnanchor_195-2">[195-2]</a>
+ <i>v. Mangoldt</i>, Lehre vom Unternehmergewinn, 1855, 49 ff. The same
+ author shows, in his Volkswirthschaftslehre, that it is better for the
+ general good that the risk should be borne by the producer than by the
+ consumer. In the case of the taking of orders, there is danger only of a
+ technic failure, but in enterprise proper, there is possible also an
+ economic miscarriage of the work, even when successful from a technic
+ point of view. But in the case of the undertaker (man of enterprise),
+ responsibility is much more of an incentive, production much more steady,
+ and therefore much better able to exhaust all means of help. Consumers are
+ much more certain in their steps, as regards price, etc., since they find
+ what they want ready made.</p>
+
+ <p class="footnote"> <a name="footnote_195-3" id="footnote_195-3"></a>
+ <a href="#fnanchor_195-3">[195-3]</a>
+ Thus <i>John Stuart Mill</i>, Principles, II, ch. 15, 4, teaches with a
+ certain amount of emphasis that the "gross profits of stock" are different
+ not so much in the different branches in which capital is employed, as
+ according to the personal capacity of the capitalist himself or of his
+ agents. There are scarcely two producers who produce at precisely the same
+ cost, even when their products are equal in quality, and equally cheap.
+ Nor are there two who turn over their capital in precisely the same time.
+ These "gross profits" uniformly fall into three classes: reward for
+ abstinence, indemnity for risk, remuneration for the labor and skill
+ required for superintendence. <i>Mill</i> complains that there is in
+ English no expression corresponding to the French <i>profit de
+ l'entrepreneur</i>. [The translator has taken the liberty to use the
+ expression "undertaker's profit," for what the French call the <i>profit
+ de l'entrepreneur</i>, and the Germans <i>Unternehmerlohn</i>, spite of
+ its funereal associations, and because Mill himself employed it, although
+ he recognized that it was not in good usage.&mdash;<span
+ class="smcap">Tr.</span>] (II, ch. 15, 1) <i>Adam Smith</i> had the true
+ doctrine in germ (Wealth of Nat., I, ch. 6), but those who came after him
+ did little to develop it. Compare <i>Ricardo</i>, Principles, ch. 6. 21.
+ <i>Read</i>, Political Economy, 1829, 262 ff., and <i>Senior</i>,
+ Outlines, 130 seq., were the first to divide profit into two parts:
+ interest-rent (<i>Zinsrente</i>) and industrial gain. Similarly,
+ <i>Sismondi</i>, N. P., IV, ch. 6. According to <i>A. Walker</i>, Science
+ of Wealth, 1867, 253, 285, "profits are wages received by the
+ employer."</p>
+
+ <p class="footnote"> <a name="footnote_195-4" id="footnote_195-4"></a>
+ <a href="#fnanchor_195-4">[195-4]</a>
+ <i>Hufeland</i>, Grundlegung, I, 290 ff.; <i>Schön</i>, Nat-Oek., 87, 112
+ ff.; <i>Riedel</i>, Nat-Oek., II, 7 ff.; <i>von Thünen</i>, Der isolirte
+ Staat, II, 1 80 ff.; <i>v. Mangoldt</i>, Unternehmergewinn, 34 ff. The
+ latter divides the undertaker's profit (<i>profit de l'entrepreneur</i>)
+ into the following parts:</p>
+
+ <p class="footnote">A. Indemnity for risk. If this be only an indemnity
+ exactly corresponding to the risk, it cannot be looked upon at all as net
+ income, but only as an indemnification for capital. If individual
+ undertakers, favored by fortune, receive a much larger indemnification
+ than is necessary to cover their losses, such indemnification is not
+ income either, but an extraordinary profit not unlike a lottery-gain,
+ unless it be called, perhaps, the reward of extraordinary courage
+ (<i>Eiselen</i>), i. e., wages. If, lastly, the indemnity is uniformly
+ somewhat larger than the risk, in order to compensate for the continual
+ feeling that one is running a risk, it must be remembered that all
+ remuneration for present sacrifice, made directly for the sake of
+ production, is wont to be embraced under the name of wages.</p>
+
+ <p class="footnote">B. Wages and interest for the labor and capital
+ utilized only in one's own production, and which cannot be let. <i>v.
+ Mangoldt</i> himself admits, that, in the long run, only certain qualified
+ labor belongs to this category.</p>
+
+ <p class="footnote">C. Undertaker's rent (<i>Unternekmerrente</i>)
+ depending on the rarity of undertakers (men of enterprise) compared with
+ the demand. This, therefore, is not a third component part, but only one
+ which adds to the other two, <i>Storch</i>, Handbuch, I, 180, and
+ <i>Rau</i>, Lehrbuch, I, § 237 ff., consider the profit of the undertaker
+ as an admixture of wages and interest. Professor <i>J. Miscszewicz</i> has
+ given expression to an interesting thought in opposition to myself: that
+ credit is a fourth factor of production (natural forces, labor and capital
+ being the other three) produced by the three older factors, as capital by
+ the two oldest. The undertaker's profit he then considers the product of
+ this fourth factor, corresponding to rent, interest and wages.</p>
+
+ <p class="footnote"> <a name="footnote_195-5" id="footnote_195-5"></a>
+ <a href="#fnanchor_195-5">[195-5]</a>
+ Compare <i>Canard</i>, Principes, ch. 3; <i>J. B. Say</i>, Traité, II, ch.
+ 7, Cours pratique, V, 1-2, 7-9, distinguishes three branches of income:
+ rent, interest and the profits of industry; and he divides the latter
+ again into the profits of the <i>savant</i>, the undertaker and workmen,
+ (<i>v. Jacob</i>, Grundsätze der Nat.-Oek., § 292; <i>Lotz</i>, Handbuch,
+ I, 471; <i>Schmalz</i>, Staatswirthschaftslehre, I, 116; <i>Nebenius</i>,
+ Oeff. Credit, I, Aufl., 466.)</p>
+
+ <p class="footnote"> <a name="footnote_195-6" id="footnote_195-6"></a>
+ <a href="#fnanchor_195-6">[195-6]</a>
+ I need only call attention to the influence that the mere name of a
+ general sometimes exerts over the achievements and sometimes even over the
+ composition of his army (Wallenstein!); and how important it sometimes is
+ to keep his death a secret. And so the mere name of a minister of finance
+ may facilitate loans, etc.</p>
+
+ <p class="footnote"> <a name="footnote_195-7" id="footnote_195-7"></a>
+ <a href="#fnanchor_195-7">[195-7]</a>
+ It is sufficient to mention the different positions occupied by the
+ shareholders and preferred creditors of a joint-stock company.</p>
+
+ <p class="footnote"> <a name="footnote_195-8" id="footnote_195-8"></a>
+ <a href="#fnanchor_195-8">[195-8]</a>
+ Compare <i>von Thünen's</i> Isolirter Statt, II, 80 ff., and his Life,
+ 1868, 96. <i>Meister muss sich immer plagen!</i> (<i>Schiller.</i>) See a
+ long catalogue of books on the position of the undertaker in the principal
+ different branches of industry in <i>Steinlein</i>, Handbuch der
+ Volkswirthschaftslehre, I, 445 ff.</p>
+
+ <p class="footnote"> <a name="footnote_195-9" id="footnote_195-9"></a>
+ <a href="#fnanchor_195-9">[195-9]</a>
+ <i>Tantièmes</i> occupy a middle place between wages and the undertaker's
+ profit; dividends a middle place between undertaker's profit and the
+ interest of capital. On this is based <i>Rodbertus's</i> view, that an
+ increase of joint stock companies raises <i>ceteris paribus</i> the rate
+ of interest, and an increase of productive associations the rate of wages,
+ for the reason that in each instance, there is some admixture of
+ "undertaker's profit," or reward of enterprise.</p>
+
+<p class="p2 center"><a name="S196"></a>SECTION CXCVI.<span
+class='pagenum'>[Pg 149]</span></p>
+
+<p class="center smaller">UNDERTAKER'S PROFIT.&mdash;CIRCUMSTANCES ON WHICH
+IT DEPENDS.</p>
+
+<p>As the wages or reward of labor, in all instances, depends on the
+circumstances mentioned in § 167 ff., so, also does the reward of
+enterprise; in other words, the undertaker's profit or wages. It depends,
+therefore:</p>
+
+<p>A. On the rarity of the personal qualities required in a business, which
+qualities may be divided into technical and ethical qualities. Among the
+latter are, especially, the capacity to inspire capitalists with confidence
+and workmen with love for their task; the administrative talent to
+systematize a great whole made up of men and to order it properly, to keep
+it together by sternness of discipline in which pedantry has no part, and
+by economy with no admixture of avarice; and frequently endurance and even
+presence of mind. These ethical, statesmanlike qualities are, take them all
+in all, a more indispensable condition of high undertaker's profit than the
+technical are.<a name="fnanchor_196-1" id="fnanchor_196-1"></a><a
+href="#footnote_196-1" class="fnanchor">[196-1]</a></p>
+
+<p>B. On the risk of the undertaking in which not only one's property, but
+one's reputation, may be lost.<a name= "fnanchor_196-2" id=
+"fnanchor_196-2"></a><a href= "#footnote_196-2" class="fnanchor">[196-2]</a>
+</p>
+
+<p>C. As to the disagreeableness of the undertaking or enterprise, we must
+take into especial consideration the disinclination of capitalists in
+general to assume the care and trouble of concerning themselves directly
+with the employment of their capital. (§ 183.) The undertaker's profit is,
+besides, lower in proportion as he needs to care less for the profitable
+application <span class='pagenum'>[Pg 150]</span> of the different sources
+of production, and for their preservation. Hence it is, in general, higher
+for the direction of circulating than of fixed capital; in speculative
+trade and in wholesale trade which extends to the whole world, than in
+retail trade and merely local business.<a name="fnanchor_196-3"
+id="fnanchor_196-3"></a><a href="#footnote_196-3" class=
+"fnanchor">[196-3]</a></p>
+
+<p>It has, indeed, been remarked, that the undertaker's profit is, as a
+rule, proportioned to the capital employed.<a name="fnanchor_196-4"
+id="fnanchor_196-4"></a><a href="#footnote_196-4" class=
+"fnanchor">[196-4]</a> This may be true in most cases, but only as the
+accidental compromise between opposing forces. It is evident that the
+greater the enterprise is, the greater may be the surplus over and above
+the compensation stipulated for in advance of all the coöperating
+productive forces, and not only absolutely but also relatively. We need
+only call to mind the successful results attending the greater division of
+labor (§ 66) and the greater division of use (<i>Gebrauchstheilung</i>) (§
+207); the greater facility of using remains in production on a large scale,
+and the fact that all purchases, and all obtaining of capital are made,
+when the items are large, at cheaper rates, because of the more convenient
+conducting of the business.</p>
+
+<p>This is true up to the point where the magnitude of the whole becomes so
+great as to render the conducting of it difficult. Considered even
+subjectively, the great undertaker, whose name and responsibility keep a
+great many productive forces together, may demand a higher reward, because
+there are so few persons competent to do the same. On the other hand, it
+cannot be denied that a support in keeping with his position may be called
+the amount of the cost of production of the undertaker's labor. If this
+cost is once fixed by custom, it will, of course, be relatively high in
+those branches of business which permit only of the employment of a small
+capital.<a name="fnanchor_196-5" id="fnanchor_196-5"></a><a href=
+"#footnote_196-5" class="fnanchor">[196-5]</a></p>
+
+<p><span class='pagenum'>[Pg 151]</span>In the higher stages of
+civilization, the undertaker's profit has, like the rate of interest, a
+tendency to decline. This decline is, indeed, in part, only an apparent
+one, caused by the decreased risk and the smaller indemnity-premium. But it
+is, in part, a real one, produced by the increased competition of
+undertakers.<a name="fnanchor_196-6" id="fnanchor_196-6"></a><a
+href="#footnote_196-6" class="fnanchor">[196-6]</a> The more intelligent
+landowners and workmen <span class='pagenum'>[Pg 152]</span> become, the
+more readily do they acquire the capacity and desire to use the productive
+forces peculiar to them in undertakings of their own; and the number of
+retired persons who live from their rents grows smaller with the decline of
+the rate of interest. The strong competition of undertakers now leads to
+degeneration, and undertakings or enterprises become usual in which the
+gains or losses are subjective, and are destitute of all
+politico-economical productiveness; for instance, the purchase of growing
+fruits, and businesses carried on in "margins," or differences. It is
+self-evident that the circumstances which retard the rate of interest, or
+turn it retrograde, would have a similar effect on the undertaker's profit.
+(§ 186.) On the whole, a rapidly growing people meet with great gains and
+losses, but the preponderance is in favor of the former. A stationary
+people are wont to become more and more careful and cautious. A declining
+people underestimate the chances of loss, although in their case they tend
+more and more to preponderate over the chances of gain. (<i>v.
+Mangoldt.</i>)</p>
+
+ <p class="footnote"> <a name="footnote_196-1" id="footnote_196-1"></a>
+ <a href="#fnanchor_196-1">[196-1]</a>
+ Thus <i>Arkwright</i>, by his talent for organization principally,
+ attained to royal wealth, while <i>Hargreaves</i>, a greater inventive
+ genius, from a technic point of view, had to bear all the hardships of
+ extreme poverty.</p>
+
+ <p class="footnote"> <a name="footnote_196-2" id="footnote_196-2"></a>
+ <a href="#fnanchor_196-2">[196-2]</a>
+ An experienced Frenchman, <i>Godard</i>, estimates that of 100 industrial
+ enterprises attempted or begun, 20 fail altogether before they have so
+ much as taken root; that from 50 to 60 vegetate for a time in continual
+ danger of failing altogether, and that, at the furthest, 10 succeed well,
+ but scarcely with an enduring success. (Enquête commerciale de 1834, II,
+ 233.)</p>
+
+ <p class="footnote"> <a name="footnote_196-3" id="footnote_196-3"></a>
+ <a href="#fnanchor_196-3">[196-3]</a>
+ Thus <i>Ganilh</i>, Théorie de l'Economie politique I, p. 145, was of the
+ opinion that in France's foreign trade the profit was only 20, and in its
+ internal trade, scarcely 10 per cent. of the value put in circulation.</p>
+
+ <p class="footnote"> <a name="footnote_196-4" id="footnote_196-4"></a>
+ <a href="#fnanchor_196-4">[196-4]</a>
+ <i>Hermann</i> loc. cit. 208.</p>
+
+ <p class="footnote"> <a name="footnote_196-5" id="footnote_196-5"></a>
+ <a href="#fnanchor_196-5">[196-5]</a>
+ According to <i>Sinclair</i>, Grundgesetze des Ackerbaues, 1821, the
+ profit on capital of English farmers was wont to be from 10 to 18 per
+ cent. Only in very remarkable cases, by persons in very favorable
+ circumstances, was from 15 to 20 per cent. earned; that is, on the whole,
+ less than in commerce and industry. In the case of farmers of meadow land,
+ 15 per cent. and even more was not unusual; because there is a need of
+ less outlay here, but more mercantile speculation, especially in the
+ fattening of live stock.</p>
+
+ <p class="footnote">At the end of the last century English farmers
+ expected 10 per cent. profit on their capital. (<i>A. Young</i>, View of
+ the Agriculture of Suffolk, 1797, 25.) And so <i>Senior</i> is of opinion
+ that, in the England of to-day, industrial enterprises of £100,000 yield a
+ profit of less than 10 per cent. a year; those of £40,000, at least 12½
+ per cent.; those of from £10,000 to £20,000, 15 per cent.; smaller ones 20
+ per cent. and even more. He makes mention of fruit hucksters who earned
+ over 20 per cent. a day; that is, over 7,000 per cent. a year! (Outlines,
+ 203 seq.) In Manchester, manufacturers, according to the same authority,
+ turned over their capital twice a year at 5 per cent.; retail dealers,
+ three times a year at 3½ per cent. (Ibid, 143.) <i>Torrens</i>, The Budget
+ (1844), 108, designates 7 per cent. as the minimum profit which would
+ induce an English capitalist to engage in an enterprise of his own.
+ According to <i>v. Viebahn</i>, Statistik des Regierungsbezirks
+ Düsseldorf, 836, I, 180, the undertaker's profit, i. e., the surplus money
+ of the value of the manufactured articles, after deduction made of the raw
+ material and wages, in the Berg country, amounted to, in 81 iron
+ factories, 146,400 thalers; in 6 cotton factories, to 21,200 thalers; in
+ 15 cloth factories, to 14,725 thalers; in 4 worsted factories, to 1,700
+ thalers; in 4 brush factories, to 800 thalers; in 2 tobacco factories to
+ 10,220 thalers; in 2 paper factories, to 7,400 thalers; on an average,
+ 1,924 thalers; although many undertakers earned only from 200 to 400
+ thalers, and some few from 5,000 to 10,000 thalers.</p>
+
+ <p class="footnote"> <a name="footnote_196-6" id="footnote_196-6"></a>
+ <a href="#fnanchor_196-6">[196-6]</a>
+ This is, of course somewhat oppressive to many individuals, and hence we
+ find that in those countries which are unquestionably making great
+ advances in civilization, there are so many complaints of alleged growing
+ impoverishment. Compare <i>Sam. Fortrey</i>, England's Interest and
+ Improvement, 1663; <i>R. Coke</i>, A Treatise wherein is demonstrated that
+ the Church and State of England are in equal danger with the Trade of it,
+ 1671. Britania languens, showing the Grounds and Reasons of the Increase
+ and Decay of Land, etc., 1680. And per contra, England's great Happiness,
+ wherein is demonstrated that a great Part of our Complaints are causeless,
+ 1677. Analogous claims might be shown to exist in Germany by a collection
+ of almost any number of opinions advanced during the last thirty
+ years.</p>
+
+<p class="p2 center"><a name="S196a"></a>SECTION CXCVI (<i>a.</i>).</p>
+
+<p class="center smaller">UNDERTAKER'S PROFIT.&mdash;HAVING THE "LEAD."</p>
+
+<p>The undertaker's profit is that branch of the national income in which
+the greater number of new fortunes are made. If a landowner has a large
+income, he generally considers himself obliged to make a correspondingly
+large outlay, one in keeping with his position; and workmen who are not
+undertakers themselves seldom have the means to make large savings.
+Besides, undertakers stand between the purchasers of their products and the
+lessors of the productive forces used by them in the peculiarly favorable
+situation which I may describe by the expression: having, as they say in
+card-playing, "the lead."<a name= "fnanchor_196a-1" id=
+"fnanchor_196a-1"></a><a href= "#footnote_196a-1" class=
+"fnanchor">[196a-1]</a> When, in the struggle for prices, one party
+occupies <span class='pagenum'>[Pg 153]</span> a position which enables him
+to observe every change of circumstance much sooner than his opponent, the
+latter may always suffer from the effects of erroneous prices. If, for
+instance, the productiveness of business increases, even without any
+personal merit of the individual undertakers themselves, it will always be
+some time before the decline in the price of commodities and the rise in
+the rate of interest take place, as a result of the increased competition
+of undertakers, consequent upon the extraordinary rate of the undertaker's
+profit. It is difficult, and even impossible in most instances for the
+proprietors of the productive forces which they have rented out, to
+immediately estimate accurately the profit made by undertakers. On the
+other hand, the least enhancement of the price of the forces of production
+is immediately felt by the undertakers, and causes them to raise their
+prices. They just as quickly observe a decline of the prices of the
+commodities, and know how to make others bear it by lowering wages and the
+rate of interest.<a name="fnanchor_196a-2" id="fnanchor_196a-2"></a><a
+href="#footnote_196a-2" class= "fnanchor">[196a-2]</a> It should not be
+forgotten that the persons most expert, far-seeing, active and expeditious
+in things economic, belong to the undertaking class.<a
+name="fnanchor_196a-3" id= "fnanchor_196a-3"></a><a href=
+"#footnote_196a-3" class= "fnanchor">[196a-3]</a> <a name= "fnanchor_196a-4"
+id= "fnanchor_196a-4"></a> <a href= "#footnote_196a-4"
+class="fnanchor">[196a-4]</a></p>
+
+ <p class="footnote"> <a name="footnote_196a-1" id="footnote_196a-1"></a>
+ <a href="#fnanchor_196a-1">[196a-1]</a>
+ The same principle is effective in intermediate commerce, and in the
+ intervention of bankers between government and state creditors.</p>
+
+ <p class="footnote"> <a name="footnote_196a-2" id="footnote_196a-2"></a>
+ <a href="#fnanchor_196a-2">[196a-2]</a>
+ This is much less the case in rents, for the reason that contracts here
+ are made for a much longer term. Hence, here the farmer has as much to
+ fear as to hope from a change of circumstances. Hence, too, we meet with a
+ farmer who has grown rich much more seldom than with a manufacturer or a
+ merchant.</p>
+
+ <p class="footnote"> <a name="footnote_196a-3" id="footnote_196a-3"></a>
+ <a href="#fnanchor_196a-3">[196a-3]</a>
+ If an undertaker can cede his higher reward to another and guaranty its
+ continuance, the circumstances which enable him to do this assume the
+ nature of fixed capital; for instance, the trade or <i>clientèle</i>
+ secured by custom or privilege. If the undertaker has not the power to
+ dispose of it in this way, the increased profit either disappears with his
+ retirement from the business or falls to the owner of the capital
+ employed, and still more to the land owner. Thus, for instance, how
+ frequently it has happened that a store, which has been largely resorted
+ to by the public, drawn thither by the business tact of the lessee, has
+ afterwards been rented by the owner at a higher rent! (<i>Hermann</i>,
+ loc. cit. 210.)</p>
+
+ <p class="footnote"> <a name="footnote_196a-4" id="footnote_196a-4"></a>
+ <a href="#fnanchor_196a-4">[196a-4]</a>
+ <i>Lassalle's</i> socialistic attacks on Political Economy have been
+ directed mainly against the undertaker's profit or reward. Compare the
+ work "Bastiat-Schulze von Delitzsch, der ökonom. Julian oder Kapital und
+ Arbeit," 1863. By means of state credit, he would have this branch of
+ income turned over to common labor. <i>Dühring</i> also, Kapital und
+ Arbeit 90, declaims not so much against capital as against "the absolutism
+ of undertakers." <i>Schäffle</i> D. Vierteljahrsschrift Nr. 106, II, 223,
+ objects to this, that undertakers give value in exchange to unfinished
+ products, a great service rendered even to the laboring class, who
+ otherwise would have to resign the advantages of the division of
+ labor.</p>
+
+ <p class="footnote">The undertaker's profit is precisely the part of the
+ great politico-economical tree from which further growth chiefly takes
+ place. To artificially arrest it, therefore, would be to hasten the
+ stationary state, and thus make general and greater the pressure on
+ workmen and capitalists, which it is sought to remove locally. Hence
+ <i>Roesler</i>, Grundsätze, 507 ff., very appropriately calls the
+ undertaker's profit the premium paid by society to those who most
+ effectually combat the "law of rent." The importance of a good undertaker
+ may be clearly seen when a joint stock manufacturing company pays a
+ dividend of from 20 to 30 per cent., while one close by, of the same kind,
+ produces no profit whatever. But, at the same time, the socialistic hatred
+ of this branch of income may be easily accounted for, in a time full of
+ stock-jobbing, which last never produces except a pseudo-undertaker's
+ profit.</p>
+
+<p><span class='pagenum'>[Pg 154]</span></p>
+
+<h3 class="p4">CHAPTER VI.</h3>
+
+<h3>CONCLUDING REMARKS ON<br />
+
+THE THREE BRANCHES OF INCOME.</h3>
+
+<p class="p2 center"><a name="S197"></a>SECTION CXCVII.</p>
+
+<p class="center smaller">INFLUENCE OF THE BRANCHES OF INCOME ON THE PRICE
+OF COMMODITIES.</p>
+
+<p>We have seen, § 106, that the cost of production of a commodity,
+considered from the point of view of individual economy, may be reduced to
+the payment for the use of the requisite productive forces rented or loaned
+to the producer. Hence every great variation in the relation of the three
+branches of income to one another must produce a corresponding <span
+class='pagenum'>[Pg 155]</span> variation in the price of commodities.<a
+name="fnanchor_197-1" id="fnanchor_197-1"></a><a href="#footnote_197-1"
+class="fnanchor">[197-1]</a> When, for instance, the rate of wages
+increases because they absorb a larger part of the national income, those
+commodities in the production of which human labor, directly employed, is
+the chief factor, must become dearer as compared with others. Whether this
+difference shall be felt principally by the products of nature or of
+capital (compare § 46 seq.), depends on the causes which brought about the
+enhancement of the rate of wages. Thus, a large decrease of population, or
+emigration on a large scale, will usually lower rent as well as the rate of
+interest;<a name="fnanchor_197-2" id="fnanchor_197-2"></a><a
+href="#footnote_197-2" class="fnanchor">[197-2]</a> an extraordinary
+improvement made in the art of agriculture, only the former; and an
+extraordinary increase of capital, only the latter. The usual course of
+things, namely that the growth of population necessitates a heavier draft
+on the resources of the soil, and thus causes rents to go up, and makes
+labor dear, must have the effect of raising the price of the products of
+labor and of natural forces, as compared with the products of capital; and
+all the more as it causes the rate of interest to suffer a positive
+decline. The products of mechanical labor become relatively cheaper; and
+cheaper in proportion as the producing machinery is more durable; therefore
+in proportion as, in the price of the services it renders, mere interest
+preponderates over compensation for its wear and tear.<a name=
+"fnanchor_197-3" id="fnanchor_197-3"></a><a href="#footnote_197-3"
+class="fnanchor">[197-3]</a></p> <p><span class='pagenum'>[Pg
+156]</span></p>
+
+<p>Let us, for a moment, leave ground-rent out of the question entirely,
+and suppose a nation's economy whose production is conducted by eleven
+undertakers employed on different commodities. Let us suppose that
+undertaker No. 1 uses machinery exclusively and employs only as many
+workmen as are strictly necessary to look after it, that undertaker No. 2
+has a somewhat larger number of workmen and a somewhat smaller amount of
+fixed capital, etc.; and that this increase in the number of workmen and
+decrease in the amount of fixed capital continues until we reach undertaker
+No. 11, who employs all his capital in the payment of wages. If now, the
+rate of wages were to rise, and the interest on capital to fall in the same
+proportion, the commodities produced by undertaker No. 11 would rise most
+in price, and those of No. 1 decline most. In the case of undertaker No. 6,
+the opposing influences would probably balance each other, and if the
+producers of money belonged to this sixth class, it would be very easy to
+get a view of the whole change in the circumstances of production, in the
+money-price of the different commodities.<a name="fnanchor_197-4" id=
+"fnanchor_197-4"></a><a href= "#footnote_197-4" class=
+"fnanchor">[197-4]</a></p>
+
+ <p class="footnote"> <a name="footnote_197-1" id="footnote_197-1"></a>
+ <a href="#fnanchor_197-1">[197-1]</a>
+ Compare <i>Adam Smith</i>, I, ch. 7, fin. This relative increase or
+ decrease of one branch of income at the expense or to the advantage of
+ another, should be distinguished from the absolute change of its amount
+ which does not affect the cost of production. Thus, for instance, when the
+ rent of land indeed increases, but in consequence of a simultaneous
+ improvement in agriculture, a decline in the rate of interest, and an
+ enhancement of the price of wheat is avoided (§ 157). So, too, when
+ individual wages increase on account of the greater skill and energy of
+ labor, but the same quantity and quality of labor do not become dearer (§
+ 172 seq.); and lastly, when the rate of interest remaining unaltered, the
+ receipts of capitalists are increased by reason of an increase of their
+ capital (§ 185).</p>
+
+ <p class="footnote"> <a name="footnote_197-2" id="footnote_197-2"></a>
+ <a href="#fnanchor_197-2">[197-2]</a>
+ After the great plague in the 14th century in England, when all the
+ products of labor became dearer, skins and wool fell largely in price:
+ <i>Rogers</i>, I, § 400.</p>
+
+ <p class="footnote"> <a name="footnote_197-3" id="footnote_197-3"></a>
+ <a href="#fnanchor_197-3">[197-3]</a>
+ Anyone who carefully reads all the five divisions of <i>Ricardo's</i>
+ first chapter will soon find that this great thinker rightly understood
+ the foregoing, although the great abstractness and hypothetical nature of
+ his conclusions might easily lead the reader astray. The proposition which
+ closes the second part, and which has been so frequently misunderstood by
+ his disciples, can be maintained only on the supposition that the prices
+ of all commodities hitherto have been made up of equal proportions of
+ rent, capital and wages. But think of Brussels lace and South American
+ skins!</p>
+
+ <p class="footnote"> <a name="footnote_197-4" id="footnote_197-4"></a>
+ <a href="#fnanchor_197-4">[197-4]</a>
+ Compare <i>J. Mill</i>, Anfangsgründe der polit. Oekonomie, Jacob's
+ translation, § 13 ff.; <i>McCulloch</i>, Principles, III, 6. <i>Adam
+ Smith</i> was of opinion, that higher wages enhanced the price of
+ commodities in an arithmetical ratio, a higher rate of interest in a
+ geometrical one (I, ch. 9). Similarly <i>Child</i>, Discourse of Trade,
+ 38. This last <i>Kraus</i>, Staatswirthschaft, better expresses by saying
+ that an increase in the rate of interest operates in the ratio of the
+ compounded interests.</p>
+
+<p class="p2 center"><a name="S198"></a>SECTION CXCVIII.<span
+class='pagenum'>[Pg 157]</span></p>
+
+<p class="center smaller">REMEDY IN CASE ONE FACTOR OF PRODUCTION HAS
+BECOME DEARER.</p>
+
+<p>When one of the three branches of income has grown as compared with the
+others; in other words, when the factor of production which it represents
+has become relatively dearer, it is to the interest of the undertaker and
+of the public, that it should be replaced where possible by another and
+cheaper productive force. (§ 47.) On this depends the advantageousness of
+<i>intensive</i> agriculture (high farming) in every higher stage of
+civilization. There land is dear and labor cheap. Hence, efforts are made
+to get along with the least amount of land-surface, and this minimum of
+land is made more productive by a number of expedients in cultivation, by
+manuring it, by seed-corn, etc., of course also by the employment of
+journeymen laborers, oxen, etc. And since the price of land is intimately
+connected with the price of most raw material, remains are here saved as
+much as possible, often with a great deal of trouble.<a name=
+"fnanchor_198-1" id="fnanchor_198-1"></a><a href= "#footnote_198-1"
+class="fnanchor">[198-1]</a> In a lower stage of civilization, such savings
+would be considered extravagance. As land is here cheap, and capital dear,
+it is necessary to carry on the cultivation of land <i>extensively</i>;
+that is, save in capital and labor, and allow the factor nature to perform
+the most possible. The clearing up of untilled land, or the draining of
+swampy land etc., would be frequently injurious here; for it would require
+the use of a very large amount of capital to obtain land of comparatively
+little value.</p>
+
+<p>In large cities, it is customary to build houses high in proportion to
+the dearness of the land.<a name= "fnanchor_198-2" id=
+"fnanchor_198-2"></a><a href= "#footnote_198-2" class=
+"fnanchor">[198-2]</a> Thus, in England, where <span class='pagenum'>[Pg
+158]</span> the rate of interest is low and wages high, labor is readily
+supplanted by capital. In countries like the East Indies or China, the
+reverse is the case. I need only call attention to the palanquins used in
+Asia instead of carriages; to the men who in South America carried ore down
+eighteen hundred steps to the smelting furnaces,<a name= "fnanchor_198-3"
+id= "fnanchor_198-3"></a><a href= "#footnote_198-3" class=
+"fnanchor">[198-3]</a> and, on the other hand, to the "elevators," so much
+in favor in England, which are used in factories to carry people from one
+story to another inside to save them the trouble of going up stairs.<a
+name= "fnanchor_198-4" id= "fnanchor_198-4"></a><a href="#footnote_198-4"
+class="fnanchor">[198-4]</a></p>
+
+ <p class="footnote"> <a name="footnote_198-1" id="footnote_198-1"></a>
+ <a href="#fnanchor_198-1">[198-1]</a>
+ The sickle instead of the scythe; careful threshing by hand, and, where
+ the rate of interest is low, threshing by machinery instead of the
+ treading out of the sheaf by oxen. Thus in Paris the scraps from
+ restaurants and soap factories are made into stearin; and the remnants in
+ shawl factories in Vienna are sent to Belgium to be used by cloth
+ manufacturers.</p>
+
+ <p class="footnote"> <a name="footnote_198-2" id="footnote_198-2"></a>
+ <a href="#fnanchor_198-2">[198-2]</a>
+ Remarked in ancient times of Tyre, which was situated on a small island,
+ and, therefore, without the possibility of horizontal extension.
+ (<i>Strabo</i>, XVI, 757.)</p>
+
+ <p class="footnote"> <a name="footnote_198-3" id="footnote_198-3"></a>
+ <a href="#fnanchor_198-3">[198-3]</a>
+ <i>Humboldt</i>, N. Espagne II, ch. 5, II, ch. 11.</p>
+
+ <p class="footnote"> <a name="footnote_198-4" id="footnote_198-4"></a>
+ <a href="#fnanchor_198-4">[198-4]</a>
+ Thus, in England, the safety of railroad trains is not secured as in
+ Germany by a multitude of watchmen, etc.; but by solid barriers, by
+ bridges at every crossing, in other words, by capital.</p>
+
+<p class="p2 center"><a name="S199"></a>SECTION CXCIX.</p>
+
+<p class="center smaller">INFLUENCE OF FOREIGN TRADE.</p>
+
+<p>Foreign trade, that great means of coöperation of labor among different
+nations, affords such a remedy in a very special manner. It very frequently
+happens that the undertakers of one country, when a certain factor of
+production seems too dear at home, borrow it elsewhere. Thus, for instance,
+a country with a high rate of wages draws on another for labor, and one
+with a high rate of interest on another for capital.<a name="fnanchor_199-1"
+id="fnanchor_199-1"></a><a href="#footnote_199-1" class="fnanchor">[199-1]
+</a> We elsewhere consider such a course of things from the standpoint of
+the supplying country, which in this way is healed of a heavy plethora of
+some single factor of production which disturbs the harmony of the whole.
+(§§ 187, 259, ff.). But, at the same time, the supplied country, considered
+from a <span class='pagenum'>[Pg 159]</span> purely economic point of view,
+reaps decided advantages therefrom. If, for instance, a Swiss confectioner
+returns from Saint Petersburgh to his home, after having made a fortune in
+an honest way, no one can say that Russia has grown poorer by the amount of
+that fortune. This man made his own capital; if he were to remain in
+Russia, its national economy would be richer than before his immigration
+thither. Now, it is, at least, no poorer, and has in the meantime had the
+advantage of the more skilled labor of the foreigner.<a name="fnanchor_199-2"
+id="fnanchor_199-2"></a><a href="#footnote_199-2" class="fnanchor">[199-2]
+</a> And, so, when a capitalist living in Germany purchases Hungarian land,
+the national income of Hungary is diminished by the amount of the annual
+rent which now goes to Germany; but it receives an equal amount in the
+interest on capital, provided the purchase was an honorable one and the
+capital given in exchange for the land honestly invested.<a name=
+"fnanchor_199-3" id="fnanchor_199-3"></a><a href="#footnote_199-3"
+class="fnanchor">[199-3]</a> If Hungary, in general, had a superabundance
+of land but a lack of capital, the economic advantage is undoubted.<a
+name="fnanchor_199-4" id="fnanchor_199-4"></a><a href="#footnote_199-4"
+class="fnanchor">[199-4]</a></p>
+
+<p>These economic rules, indeed, are applicable only to the extent <span
+class='pagenum'>[Pg 160]</span> that higher and national considerations do
+not in the interest of all, create exceptions to them. "Is not the life
+more than meat, and the body than raiment?" No rational people will allow
+certain services to be performed for them preponderantly by foreigners,
+even when they can be performed cheaper by the latter&mdash;the services of
+religion, of the army, of the state, etc. The same is true of
+landownership; and all the truer in proportion as political and legal
+rights of presentation and other forms of patronage are attached to it.
+Lastly, hypothecation-debts which go beyond certain limits, may entail the
+same consequences as the complete alienation of the land;<a
+name="fnanchor_199-5" id="fnanchor_199-5"></a><a href="#footnote_199-5"
+class="fnanchor">[199-5]</a> and Raynal may have been, under certain
+circumstances, right when he said, that to admit foreigners to subscribe to
+the national debt was equivalent to ceding a province to them.<a
+name="fnanchor_199-6" id="fnanchor_199-6"></a><a href="#footnote_199-6"
+class="fnanchor">[199-6]</a> It is obvious that a great power may do much
+in this relation that would be a risk to a small state.<a name=
+"fnanchor_199-7" id="fnanchor_199-7"></a><a href="#footnote_199-7"
+class="fnanchor">[199-7]</a> <a name="fnanchor_199-8" id="fnanchor_199-8">
+</a><a href="#footnote_199-8" class="fnanchor">[199-8]</a></p>
+
+ <p class="footnote"> <a name="footnote_199-1" id="footnote_199-1"></a>
+ <a href="#fnanchor_199-1">[199-1]</a>
+ "The transportation of productive capital and industrial forces from one
+ point where their services are worse paid for, to another where they find
+ a rich reward, will not be apt to be made so long as the equilibrium may
+ be obtained [most frequently much more easily] by the interchange of the
+ products." (<i>Nebenius</i>, Oeff. Credit, I, 48.) The repeal of the corn
+ laws in England certainly diminished the emigration of English
+ capital.</p>
+
+ <p class="footnote"> <a name="footnote_199-2" id="footnote_199-2"></a>
+ <a href="#fnanchor_199-2">[199-2]</a>
+ For an official declaration of the Brazilian state in this direction, see
+ Novara Reise.</p>
+
+ <p class="footnote"> <a name="footnote_199-3" id="footnote_199-3"></a>
+ <a href="#fnanchor_199-3">[199-3]</a>
+ Basing himself hereon, <i>Petty</i>, Political Anatomy of Ireland, 82 ff.,
+ questions the usual opinion, that Ireland suffered so much from
+ absenteeism. He says that a prohibition of absenteeism carried out to its
+ logical conclusion would require every man to sit on the sod he had tilled
+ himself. <i>Carey</i>, On the Rate of Wages, 1835, 477, calls English
+ capitalists who draw interest from America, absentees.</p>
+
+ <p class="footnote"> <a name="footnote_199-4" id="footnote_199-4"></a>
+ <a href="#fnanchor_199-4">[199-4]</a>
+ The older political economists have, as a rule, ignored this law, and were
+ wont to consider every payment of money to a foreign country as injurious.
+ Thus, for instance, <i>Culpeper</i>, Tract against the high Rate of Usury,
+ 1623, 1640, disapproves all loans made from foreign countries, because
+ they draw more money in interest, and in repayment of the principal out of
+ the nation, than they brought into it at first; and all the more, as the
+ loan is generally procured, not in the precious metals, but in foreign
+ goods, of which there is a superabundance in the home country. Similarly
+ <i>Child</i>, Discourse of Trade, 1690, 79, who claims that the creditor
+ was always fattened at the expense of the debtor. Hence <i>v.
+ Schröder</i>, Fürst, Schatz- und Rentkammar, 141, advises that the capital
+ borrowed in foreign countries should be confiscated. Compare, also, <i>v.
+ Justi</i>, Staatswirthschaft, II, 461. And yet the very simplest
+ calculation shows, that if a man borrows $1,000 at 5 per cent. and makes
+ 10, he is doing a good business with the borrowed capital. This
+ <i>Locke</i>, Considerations, 9, recognizes very clearly. Compare, also,
+ <i>J. B. Say</i>, Traité, II, ch. 10, and <i>Hermann</i>, Staatsw.
+ Unters., 365 seq.</p>
+
+ <p class="footnote"> <a name="footnote_199-5" id="footnote_199-5"></a>
+ <a href="#fnanchor_199-5">[199-5]</a>
+ Think of the English creditors in Portugal and the Genoese in Corsica
+ (<i>Steuart</i>, Principles, II, ch. 29.) Considered simply from an
+ economic standpoint, the Edinburg Review, XX, 358, very clearly
+ demonstrates that England should recruit her army from Ireland, where
+ wages are so much lower than in Great Britain. But how dangerous in a
+ political sense! In 1832, one-fourth of the stock of the United States
+ Bank was in the hands of foreigners, and hence its opponents nick-named it
+ the "British Bank." By the rules of the principal bank in Philadelphia, in
+ 1836, only American citizens were allowed a vote in its proceedings.
+ Similarly in the case of the Bank of France. (<i>M. Chevalier</i>, Lettres
+ sur l'Amerique du N. I, 364.) It may be remarked in general, that the
+ older political economists have based correct political views on false
+ economic principles, while the more modern ignore them entirely.</p>
+
+ <p class="footnote"> <a name="footnote_199-6" id="footnote_199-6"></a>
+ <a href="#fnanchor_199-6">[199-6]</a>
+ Compare <i>Montesquieu</i>, E. des Lois L, XXII, 17; <i>Blackstone</i>,
+ Commentaries, I, 320.</p>
+
+ <p class="footnote"> <a name="footnote_199-7" id="footnote_199-7"></a>
+ <a href="#fnanchor_199-7">[199-7]</a>
+ Thus Austria conceded, in 1854-55, a number of railways to French
+ capitalists, and always favored the purchase of landed estates by small
+ foreign princes. In the latter case, Austrian influence abroad was much
+ more promoted by the measure than was foreign influence in Austria.</p>
+
+ <p class="footnote"> <a name="footnote_199-8" id="footnote_199-8"></a>
+ <a href="#fnanchor_199-8">[199-8]</a>
+ Every nationality is not worth the sacrificing of the highest economic
+ advantage or profit to it. Or, would it be preferable to leave the
+ Hottentots and Caffirs, poor, barbarous and heathenish?</p>
+
+<p class="p2 center"><a name="S200"></a>SECTION CC.<span
+class='pagenum'>[Pg 161]</span></p>
+
+<p class="center smaller">INFLUENCE OF THE BRANCHES OF INCOME ON THE PRICE
+OF COMMODITIES.</p>
+
+<p>In relation to foreign trade, in the narrowest sense of the term, fears
+were formerly very frequently expressed and are sometimes even now, which
+in the last analysis are based on the assumption that one country might be
+underbid by another in all branches of commodities.<a name=
+"fnanchor_200-1" id= "fnanchor_200-1"></a><a href= "#footnote_200-1" class=
+"fnanchor">[200-1]</a> This is evidently absurd. Whoever wants to pay for
+foreign commodities can do it only in goods of his own. When he pays for
+them with money, the money is either the immediate product of his own
+husbandry (mining countries!), or the mediate product obtained by the
+previous surrender of products of his own. To receive from foreign
+countries all the objects which one has need of, would be to receive them
+as a gift.</p>
+
+<p>It is just as absurd to fear that the three branches of income in the
+same country's economy should be all relatively high at the same time, and
+competition with foreign countries be thus made more difficult. Rent and
+interest especially in this respect have to demean themselves in ways
+diametrically opposed to each other.<a name= "fnanchor_200-2" id=
+"fnanchor_200-2"></a><a href= "#footnote_200-2" class=
+"fnanchor">[200-2]</a> When trade is entirely free, every nation will
+engage at last in those branches of production which require chiefly the
+productive forces which are cheapest in that country; that is which the
+relatively low level of the corresponding branch of income recommends to
+individual economy and enterprise. The merely absolute and personal height
+of the three branches of income has, as we have <span class='pagenum'>[Pg
+162]</span> said, no direct influence on the price of commodities. In this
+respect, all these may be higher in one country than in another. Thus, for
+instance, English landowners, capitalists and workmen may be all at the
+same time in a better economic condition respectively than Polish
+landowners, capitalists and workmen, when the national income of England
+stands to its area and population in general, in a much more favorable
+ratio than the Polish.<a name="fnanchor_200-3" id="fnanchor_200-3"></a><a
+href="#footnote_200-3" class="fnanchor">[200-3]</a></p>
+
+ <p class="footnote"> <a name="footnote_200-1" id="footnote_200-1"></a>
+ <a href="#fnanchor_200-1">[200-1]</a>
+ Thus, <i>Forbonnais</i>, Eléments du Commerce I, 73. <i>J. Moser</i>,
+ Patr. Ph., I, No.&nbsp;2.</p>
+
+ <p class="footnote"> <a name="footnote_200-2" id="footnote_200-2"></a>
+ <a href="#fnanchor_200-2">[200-2]</a>
+ For a thorough refutation of the error that everything is dearer in
+ England than in France, see Journ. des Econ., Mai, 1854, 295 seq. A
+ distinguished architect assured me in 1858, that a person in London could
+ build about as much for £1 as for from 6 to 7 thalers in Berlin; only the
+ aggregate expense in both countries is made up of elements very different
+ in their relative proportions.</p>
+
+ <p class="footnote"> <a name="footnote_200-3" id="footnote_200-3"></a>
+ <a href="#fnanchor_200-3">[200-3]</a>
+ We very frequently hear that countries with high wages must be outflanked
+ in a neutral market by countries with a low rate of wages.
+ <i>Ricardo's</i> disciples reject this, because a decrease in the profit
+ would put the undertaker in a condition to bear the loss caused by the
+ high wages paid. See Report of the Select Committee on Artisans and
+ Machinery. <i>Senior</i> ridicules such reasoning very appropriately by
+ inquiring: "Might not the loss enable him to bear the loss?" Outlines,
+ 146. And so <i>J. B. Say</i> thinks that wages are always lowest when
+ undertakers are earning nothing. The truth is rather this: a country with
+ a relatively high rate of wages cannot, in a neutral market, offer those
+ commodities the chief factors required for the production of which is
+ labor; but the comparatively low rate of interest or low rents, or the
+ lowness of both found in connection therewith, must fit it to produce
+ other commodities very advantageously. If, therefore, the rate of wages
+ rises, the result will be to divert production and exports into other
+ channels than those in which they have hitherto flowed. The old complaint
+ of Saxon agriculturists, that there is a lack of labor in the country, is
+ certainly very surprising in a nation as thickly populated as Saxony. But
+ the remedy proposed by the most experienced practitioners consists chiefly
+ in a higher rate of wages to enable workmen to care for themselves in old
+ age, the introduction of the piece-work system and an increase of
+ agricultural machines. But it seems to me, that the whole situation there
+ points to the advantage of in part limiting the large farming hitherto
+ practiced to live-stock raising and other branches in which labor may be
+ spared, and in part of replacing it, by small farming of plants which are
+ objects of trade.</p>
+
+ <p class="footnote">Many points belonging to this subject have been very
+ well discussed by <i>J. Tucker</i>, in his refutation of <i>Hume's</i>
+ theory on the final and inevitable superiority of poor countries over rich
+ ones in industrial matters. (Four Tracts on political and commercial
+ Subjects, 1774, No. 1; <i>L. Lauderdale</i>, Inquiry, 206.)</p>
+
+<p class="p2 center"><a name="S201"></a>SECTION CCI.<span
+class='pagenum'>[Pg 163]</span></p>
+
+<p class="center smaller">HARMONY OF THE THREE BRANCHES OF
+INCOME.&mdash;INDIVIDUAL DIFFERENCE IN THEM.</p>
+
+<p>As national-economical civilization advances, the personal difference of
+the three branches of income is wont to become more and more sharply
+defined.<a name="fnanchor_201-1" id= "fnanchor_201-1"></a><a href=
+"#footnote_201-1" class= "fnanchor">[201-1]</a> The struggle between
+landowners, farmers and workmen, which Ricardo necessarily assumed, did not
+exist at all in the middle ages; since landowners and farmers were then
+usually one and the same person, and since workmen, either as slaves or
+peasants, were protected against competition properly so called. And so in
+the industry of that time, based on the trades or on domestic industry.<a
+name="fnanchor_201-2" id="fnanchor_201-2"></a><a href="#footnote_201-2"
+class="fnanchor">[201-2]</a> <a name="fnanchor_201-3" id="fnanchor_201-3">
+</a><a href="#footnote_201-3" class="fnanchor">[201-3]</a></p>
+
+<p>When, later, the division of labor increases, all the differences of
+men's aptitudes are turned to more advantage, and are more fully developed.
+In the same proportion that a <span class='pagenum'>[Pg 164]</span> working
+class is developed, the members of which are nothing but workmen, and can
+scarcely hope to possess capital or land,<a name="fnanchor_201-4"
+id="fnanchor_201-4"></a><a href="#footnote_201-4" class=
+"fnanchor">[201-4]</a> there grows up, side by side with it, a class of
+mere capitalists, who come to obtain an ever-increasing importance.</p>
+
+<p>Considered from a purely economic point of view, this transition has its
+great advantages. How much must the existence of a special class of
+capitalists facilitate the concentration of capital and the consequent
+promotion of production, as well as its (capital's) price-leveling influx
+and outflow! Even "idle" capitalists have this of good, that, without them,
+no competent man, destitute of means could engage in any independent
+enterprise. When, indeed, the gulf between these two classes passes certain
+bounds, it may, politically and socially, become a great evil. (§ 63.)<a
+name="fnanchor_201-5" id="fnanchor_201-5"></a><a href="#footnote_201-5"
+class="fnanchor">[201-5]</a></p>
+
+ <p class="footnote"> <a name="footnote_201-1" id="footnote_201-1"></a>
+ <a href="#fnanchor_201-1">[201-1]</a>
+ Among nations in their decline, rent and interest fall into one possession
+ again, because capitalists here are wont to buy the land. (<i>Roscher</i>,
+ Nationalökonomik des Ackerbaues, § 140 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_201-2" id="footnote_201-2"></a>
+ <a href="#fnanchor_201-2">[201-2]</a>
+ Related to this peculiarity of the middle ages is the fact that the canon
+ law looked with disfavor on the personal separation of the three factors
+ of production. So also in the prohibition of the <i>Weddeschat</i>
+ referred to § 161, instead of rent-purchase (<i>Rentekauf</i>), also by
+ extending the idea of partnership to a number of transactions which are
+ only forms of loan. (<i>Endemann</i> in <i>Hildebrand's</i> Jahrb., 1863,
+ 176 ff.) Antiquity also, with the independence of its οἶκος,<a name=
+ "fnanchor_TN28" id= "fnanchor_TN28"></a><a href= "#footnote_TN28" class=
+ "fnanchor">[TN 28]</a> with its slavery, etc., had not developed the
+ difference between the three branches of industry to any extent.
+ <i>Rodbertus</i>, in <i>Hildebrand's</i> Jahrbb., 1865, I, 343.</p>
+
+ <p class="footnote"> <a name="footnote_201-3" id="footnote_201-3"></a>
+ <a href="#fnanchor_201-3">[201-3]</a>
+ If older writers, like <i>Steuart</i>, etc., speak so little of capital,
+ labor and rent, and so much of city and country, it is not on account of
+ ignorance simply. The contrast between the latter was then much more
+ important than to-day, and that between the former much less developed.
+ When, indeed, <i>Colton</i>, Public Economy of the United States, 1848,
+ 155 ff., claims that because in America the three branches of income do
+ not exist in so separated a condition as in Europe, therefore European
+ Political Economy and its theories are not applicable to America, he
+ forgets that science should not be simply a description or impression made
+ of the reality, but an analysis of it.</p>
+
+ <p class="footnote"> <a name="footnote_201-4" id="footnote_201-4"></a>
+ <a href="#fnanchor_201-4">[201-4]</a>
+ It is a very characteristic fact that, in our days, when workmen are
+ spoken of, it is generally day laborers and tradesmen that are understood.
+ In Prussia, in 1804, 17.8 per cent. of the population earned their living
+ by letting out their labor; in 1846, 22.8 per cent. as day-laborers,
+ servants, journeymen, tradesmen and factory hands. (<i>Dieterici.</i>)</p>
+
+ <p class="footnote"> <a name="footnote_201-5" id="footnote_201-5"></a>
+ <a href="#fnanchor_201-5">[201-5]</a>
+ <i>Ricardo</i>, Principles, ch. 4, recognizes the bright side as well as
+ <i>Sismondi</i>, N. P., I, 268, or <i>Buret</i>, De la Misère des Classes
+ laborieuses en Angleterre et en France, 1841, its dark side.
+ <i>Sismondi</i> thinks that land and the capital employed in its
+ cultivation are found to the greatest disadvantage in the hands of the
+ same person. The existence of a thrifty peasant class (also of a class of
+ tradesmen) is one of the best means to prevent the too wide separation of
+ the three branches of income.</p>
+
+<p class="p2 center"><a name="S202"></a>SECTION CCII.</p>
+
+<p class="center smaller">HARMONY OF THE THREE BRANCHES OF
+INCOME.&mdash;NECESSITY OF THE FEELING OF A COMMON INTEREST.</p>
+
+<p>Every class corresponding to a branch of the national income must live
+with the consciousness that its interests coincide with the economic
+interests of the whole nation. Whenever the entire national income
+increases, each branch of it may increase without any injury to the others,
+and, as a rule, <span class='pagenum'>[Pg 165]</span> does really
+increase.<a name="fnanchor_202-1" id= "fnanchor_202-1"></a><a href=
+"#footnote_202-1" class= "fnanchor">[202-1]</a> But it is possible that the
+land owning class may be specially dependent on the prosperity of the whole
+people. How easy it is for workmen to emigrate; and how much easier yet for
+capital! England, to-day, can scarcely carry on a great war, in which it
+would not, at least at the beginning, have to fight English capital.<a
+name="fnanchor_202-2" id= "fnanchor_202-2"></a><a href="#footnote_202-2"
+class="fnanchor">[202-2]</a> Where the treasure is, the heart is also! The
+land alone is immovable. It alone cannot be withdrawn from the pressure of
+taxation or from the distress of war. It alone cannot flee into foreign
+parts.<a name="fnanchor_202-3" id="fnanchor_202-3"></a><a href=
+"#footnote_202-3" class="fnanchor">[202-3]</a> <a name="fnanchor_202-4"
+id="fnanchor_202-4"></a> <a href="#footnote_202-4" class=
+"fnanchor">[202-4]</a> At the same time, it cannot be denied that the
+possibility <span class='pagenum'>[Pg 166]</span> of being able to carry
+one's fortune out of a country in one's pocketbook and to be able to
+procure there with one's money the same conveniences, customs, etc., to
+which one was accustomed at home, is, under certain circumstances, an
+important element of political and religious freedom. Moreover, the bright
+side and the dark of every class of owners, especially the dread of all
+unnecessary and also of all necessary change, must be common to rent and
+interest. Hence, where there is a marked and well-defined separation of the
+branches of income, it will be always considered a difficult but
+unavoidable problem, how to enable mere labor to take an active part in the
+affairs of the state.<a name="fnanchor_202-5" id="fnanchor_202-5"></a><a
+href="#footnote_202-5" class="fnanchor">[202-5]</a></p>
+
+<p>In times when calm prevails (not, however, in transition-crises such as
+are referred to in § 24), there is a public opinion concerning merit and
+reward, we might say a public conscience, by which a definite relation of
+the three branches of income to one another is declared equitable. Every
+"fair-minded man" feels satisfied when this relation is realized, and this
+feeling of satisfaction is one of the principal conditions precedent to the
+prosperity of production; inasmuch as upon it depends the participation
+(<i>Theilnahme</i>) of all owners of funds and forces. Every deviation from
+this relation or proportion is, of course, a misfortune,<a name=
+"fnanchor_202-6" id="fnanchor_202-6"></a><a href="#footnote_202-6" class=
+"fnanchor">[202-6]</a> but never so great as <span class= 'pagenum'>[Pg
+167]</span> when it takes place at the expense of the wages of labor. It
+should never be forgotten that rent is an appropriation of the gifts of
+nature, and that interest is a further fruit obtained by frugality from
+older labor already remunerated. Besides, the rate of wages when high,
+generally adds to the efficiency of labor, which cannot be claimed for
+interest or rent.<a name="fnanchor_202-7" id= "fnanchor_202-7"></a><a
+href="#footnote_202-7" class= "fnanchor">[202-7]</a> The best means to
+preserve the harmony of the three branches of income is, however, universal
+activity. "Rich or poor, strong or weak, the idler is a knave." (<i>J. J.
+Rousseau.</i>)</p>
+
+ <p class="footnote"> <a name="footnote_202-1" id="footnote_202-1"></a>
+ <a href="#fnanchor_202-1">[202-1]</a>
+ The contrast between <i>Adam Smith</i>, at the end of the first book, and
+ <i>Ricardo</i>, ch. 24, in regard to this point, is very characteristic of
+ the times of those two authors. According to <i>Smith</i>, the private
+ interests of the landowners and laborers run entirely parallel; only both
+ classes are easily deceived as to their own interests. Capitalists
+ understand their own interest very well, and represent it with great
+ energy; but their interest is in opposition to the common good, in so far
+ as their profit among a poor and declining people is higher than among a
+ rich and flourishing one. <i>Ricardo</i>, on the other hand, thinks that
+ the interest of the landowners is opposed to that of all others for the
+ reason that they desire that the cost of the production of wheat etc.
+ should be as high as possible.</p>
+
+ <p class="footnote">Related to this is the fact that, in <i>Adam
+ Smith's</i> time, the new theory of rent remained almost unnoticed, but
+ that after 1815, it became rapidly popular. In a similar way, the
+ socialists of the present time are wont to charge the undertaking class
+ with opposing their own interests to those of the whole people, meaning by
+ the whole the majority. (§ 196 a.)</p>
+
+ <p class="footnote"> <a name="footnote_202-2" id="footnote_202-2"></a>
+ <a href="#fnanchor_202-2">[202-2]</a>
+ Towards the end of the 14th century the great Flemish merchants always
+ sided with the absolutism of France in opposition to their own
+ <i>Artevelde</i>.</p>
+
+ <p class="footnote"> <a name="footnote_202-3" id="footnote_202-3"></a>
+ <a href="#fnanchor_202-3">[202-3]</a>
+ Hence it is, that in so many constitutions, charters of cities, etc., the
+ exercise of the higher rights of citizenship is conditioned by the
+ possession of a certain quantity of land, and that landownership is
+ considered as a species of public function.</p>
+
+ <p class="footnote">I read, a short time ago, the life of a North-German
+ noblemen who, in 1813, had fought bravely against the French, "although he
+ was a man of large estates, and the enemy might therefore very easily have
+ laid hands on them." If this "although" of his eulogist expressed the
+ actual feeling of large landed proprietors, a great many old political
+ institutions would have lost all foundation.</p>
+
+ <p class="footnote"><i>Ad. Müller</i> was of opinion that the rights of
+ primogeniture, etc., might be an obstacle in the way of the development of
+ the net income of a nation's economy; but that they gave to the state and
+ to the national life the warlike tone so necessary to them, etc.
+ (Elemente, II, 90.)</p>
+
+ <p class="footnote"> <a name="footnote_202-4" id="footnote_202-4"></a>
+ <a href="#fnanchor_202-4">[202-4]</a>
+ "The Roman capitalists on whom Pompey counted, left him in the lurch at
+ the moment of danger, because Cæsar destroyed only the constitution, but
+ respected their business relations." (<i>K. W. Nitsch.</i>)</p>
+
+ <p class="footnote"> <a name="footnote_202-5" id="footnote_202-5"></a>
+ <a href="#fnanchor_202-5">[202-5]</a>
+ <i>Kosegarten</i>, Nat. Oek., 186, thinks that, on account of the struggle
+ between the labor interest and the interest of capitalists, in our times,
+ the "fourth estate" is not as well represented by persons belonging to the
+ propertied classes as the constitutionalist party thinks. And in fact,
+ <i>Jarke</i>, Principienfragen, 1854, 197, would have it represented by
+ the government, in order to prevent the struggle between rich and poor.
+ See <i>Cherbuliez</i>, Riche ou Pauvre, p. 242 seq.</p>
+
+ <p class="footnote"> <a name="footnote_202-6" id="footnote_202-6"></a>
+ <a href="#fnanchor_202-6">[202-6]</a>
+ <i>A. Walker</i> shows, in a very happy manner, how no misfortune, however
+ great, whether it come from heaven or from earth, in the shape of
+ pestilence, drought, flood or oppressive taxation, so rapidly and
+ hopelessly ruins a nation's economy as when the harmony which should exist
+ between capital and labor is disturbed by foul play or legal frauds
+ between labor or capital and their reward. (Sc. of Wealth, 66.)</p>
+
+ <p class="footnote"> <a name="footnote_202-7" id="footnote_202-7"></a>
+ <a href="#fnanchor_202-7">[202-7]</a>
+ Compare <i>Lotz</i>, Revision, III, 322 ff., 327, 334 ff. Handbuch, I, 511
+ ff. <i>Lafitte</i>, Sur la Réduction de la Rente, 56. <i>Fuoco</i>
+ exaggerates this into the principle: <i>che la distribuzione, e non la
+ produzione, sia la prima e principal operazione in economia</i>. (Saggi
+ economici, II, p. 44.)</p>
+
+<p><span class='pagenum'>[Pg 168]</span></p>
+
+<h3 class="p4">CHAPTER VII.</h3>
+
+<h3>DISTRIBUTION OF NATIONAL INCOME.</h3>
+
+<p class="p2 center"><a name="S203"></a>SECTION CCIII.</p>
+
+<p class="center smaller">EFFECT OF AN EQUAL DIVISION OF THE NATIONAL
+INCOME.</p>
+
+<p>The best distribution of the national income among a people is that
+which enables them to enjoy the greatest amount and variety of real goods,
+and permanently to produce real goods in an increasing quantity and
+variety.</p>
+
+<p>If the income of a people were divided equally among all, each one would
+indeed, be, to a very great extent, independent of all others. But then, no
+one would care to devote himself to the coarser and less agreeable
+occupations, and these would be either entirely neglected, or people would
+have to take turns in engaging in them.<a name="fnanchor_203-1" id=
+"fnanchor_203-1"></a><a href="#footnote_203-1" class=
+"fnanchor">[203-1]</a> (§ 9.) And thus would disappear one of the chief
+advantages of the division of labor, viz: that the higher orders of talent
+are devoted to the higher orders of labor. Besides, it is very doubtful,
+whether, under such circumstances, there would still be any solvent
+(<i>zahlungsfähige</i>) demand for the achievements of art.</p>
+
+<p>Nor would the saving of capital prosper, where such equality prevailed.
+Most men consider the average outlay of their equals as an unavoidable
+want, and save only to the extent <span class='pagenum'>[Pg 169]</span>
+that they possess more than others of their class. If, therefore, every one
+had an equal income, no one would consider himself in a condition to
+save.<a name="fnanchor_203-2" id="fnanchor_203-2"></a><a href=
+"#footnote_203-2" class="fnanchor">[203-2]</a> The same consideration would
+deter most men from every economic venture, and yet no great progress is
+possible where no venture is made.<a name="fnanchor_203-3" id=
+"fnanchor_203-3"></a><a href="#footnote_203-3" class=
+"fnanchor">[203-3]</a> <a name="fnanchor_203-4" id= "fnanchor_203-4"></a>
+<a href="#footnote_203-4" class= "fnanchor">[203-4]</a></p>
+
+ <p class="footnote"> <a name="footnote_203-1" id="footnote_203-1"></a>
+ <a href="#fnanchor_203-1">[203-1]</a>
+ According to <i>Schäffle</i>, System, II, 379 ff., "the distribution of
+ the social return of production which conduces to the attainment of the
+ highest measure of civilization in the moral association of men and in all
+ the grades of that association, and thereby to the satisfaction of all
+ true human wants in the highest degree." Thus only can a satisfactory line
+ of demarkation be drawn between the profit of capital and the wages of
+ labor (384).</p>
+
+ <p class="footnote"> <a name="footnote_203-2" id="footnote_203-2"></a>
+ <a href="#fnanchor_203-2">[203-2]</a>
+ See <i>Aristoph.</i>, Plut., 508 ff. Not taken into consideration
+ sufficiently by <i>Benjamin Franklin</i>, in his eulogy of the equality of
+ property: The internal State of America, 1784.</p>
+
+ <p class="footnote"> <a name="footnote_203-3" id="footnote_203-3"></a>
+ <a href="#fnanchor_203-3">[203-3]</a>
+ The essential characteristic of the desert is, according to <i>Ritter</i>,
+ Erdkunde, I, 1019 seq., its uniformity. No break in the horizontal plain,
+ and hence no condensation of atmospheric vapor into bodies of water of any
+ considerable size. The composition of the soil is everywhere the same;
+ nothing but masses of silex and salt, hard and sharp. Lastly, extreme
+ mobility of the surface, which undulates with every wind, so that no plant
+ can take root in it. Nearly every feature in this picture finds its
+ analogon in the extreme political and economic equality of men.</p>
+
+ <p class="footnote"> <a name="footnote_203-4" id="footnote_203-4"></a>
+ <a href="#fnanchor_203-4">[203-4]</a>
+ <i>Les supériorités, qui ne sont dues qu'à, un usage plus intelligent et
+ mieux réglé de nos facultés naturelles, loin d'être un mal, sont un
+ véritable bien. C'est dans la plus grande prospérité, qui accompagne un
+ plus grand et plus heureux effort, qu'est le principe de tout
+ développement.</i> (<i>Dunoyer</i>, Liberté du Travail, IV, 9, 10.) But,
+ indeed, the rich man should never forget that society "inasmuch as it
+ permits the concentration of wealth in his hands, expects that he will
+ employ it to better advantage than the mass of mankind would if that same
+ wealth were equally divided among them." (<i>Brentano.</i>)</p>
+
+<p class="p2 center"><a name="S204"></a>SECTION CCIV.</p>
+
+<p class="center smaller">DISTRIBUTION OF NATIONAL INCOME.&mdash;MONEYED
+ARISTOCRACIES AND PAUPERISM.</p>
+
+<p>The extreme opposite of this, when the middle class disappears and the
+whole nation falls into a few over-rich men and numberless proletarians, we
+call the oligarchy of money, with pauperism as the reverse of the medal.
+Such a social condition has all the hardship of an aristocracy without its
+palliatives. As it is, as a rule, the offspring of a degenerated
+democracy,<a name="fnanchor_204-1" id="fnanchor_204-1"></a><a href=
+"#footnote_204-1" class="fnanchor">[204-1]</a> it cannot in form depart too
+widely from the principle <span class='pagenum'>[Pg 170]</span> of
+equality. Only get rich, they cry to the famishing poor; the law puts no
+obstacle in your way, and you shall immediately share our position.<a
+name="fnanchor_204-2" id="fnanchor_204-2"></a><a href="#footnote_204-2"
+class="fnanchor">[204-2]</a> Here the uniformity and centralization of the
+state, which are an abomination in the eyes of genuine aristocracy, are
+carried to the extreme. Capital takes the place of men, and is valued more
+than men. All life is made to depend on the state, that its masters, the
+great money-men, may control it as they will. The falling away of all
+restrictions on trade, and of all uncommercial considerations relating to
+persons and circumstances, gives full play to capital, and speculators seek
+to win all that can be won. And, indeed, all colossal fortunes are
+generally made at the expense of others, either with the assistance of the
+state-power or by speculation in the fluctuations of values.<a
+name="fnanchor_204-3" id="fnanchor_204-3"></a><a href="#footnote_204-3"
+class="fnanchor">[204-3]</a> The dependence of proletarians on others is
+here all the greater, because from a complete absence of capital and land,
+so far as they are concerned, they are compelled, uninterruptedly, to carry
+their entire labor-force to market; and also because the supply of labor is
+made in masses embracing a large number of individuals, while the demand
+for labor lies in the hands of very few, and may be very readily and
+systematically concentrated.<a name="fnanchor_204-4" id=
+"fnanchor_204-4"></a><a href= "#footnote_204-4" class=
+"fnanchor">[204-4]</a> So great and one-sided a dependence is, for men too
+far removed from one another for real mutual love, doubtless one of the
+greatest of moral temptations. It is as easy a matter for the hopelessly
+poor to hate the law, as it is for the over-rich to despise it.<a
+name="fnanchor_204-5" id="fnanchor_204-5"></a><a href="#footnote_204-5"
+class="fnanchor">[204-5]</a> Under such circumstances, the contagious power
+<span class='pagenum'>[Pg 171]</span> of communism, the dangers of which to
+order and freedom we have treated of in § So, is great. There is a dreadful
+lesson in the fact of history, that six individuals owned one-half of the
+province of Africa, <i>when Nero had them put to death</i>!<a
+name="fnanchor_204-6" id="fnanchor_204-6"></a><a href="#footnote_204-6"
+class="fnanchor">[204-6]</a> Externally, a moneyed oligarchy will always be
+a weak state. The great majority who have nothing to lose take little
+interest in the perpetuation of its political independence. They rather
+rejoice at the downfall of their oppressors hitherto, and are cheered by
+the hope of obtaining a part of the general plunder.<a
+name="fnanchor_204-7" id="fnanchor_204-7"></a><a href="#footnote_204-7"
+class="fnanchor">[204-7]</a> The rich, too, separated from the neglected
+and propertyless masses of the nation, and rightly distrustful of them,
+begin to forget their nationality, and to balance its advantages against
+the sacrifices necessary to preserve it. But, a merely materialistic
+calculation leads doubtless to the conclusion, that universal empire is the
+most rational form of the state. The world-sovereignty of Rome was, by no
+circumstance more promoted than by the struggles between the rich and the
+poor, which devastated the <i>orbis terrarum</i>, and in which the Romans
+generally sided with the property classes.<a name="fnanchor_204-8"
+id="fnanchor_204-8"></a><a href= "#footnote_204-8"
+class="fnanchor">[204-8]</a> <a name="fnanchor_204-9" id=
+"fnanchor_204-9"></a><a href="#footnote_204-9" class=
+"fnanchor">[204-9]</a> <a name="fnanchor_204-10" id= "fnanchor_204-10"></a>
+<a href="#footnote_204-10" class= "fnanchor">[204-10]</a> <a
+name="fnanchor_204-11" id= "fnanchor_204-11"></a> <a href=
+"#footnote_204-11" class= "fnanchor">[204-11]</a> <span class='pagenum'>[Pg
+172-3]</span> However, the worst horrors of the contrast here described can
+occur only in slave-countries. Compare <i>Roscher</i>, Nationalökonomik des
+Ackerbaues, § 141.</p>
+
+ <p class="footnote"> <a name="footnote_204-1" id="footnote_204-1"></a>
+ <a href="#fnanchor_204-1">[204-1]</a>
+ The more the lower classes degenerate into the rabble, and the more the
+ national sovereignty comes into the hands of this rabble, the easier will
+ it become for the rich to buy up the State.</p>
+
+ <p class="footnote"> <a name="footnote_204-2" id="footnote_204-2"></a>
+ <a href="#fnanchor_204-2">[204-2]</a>
+ In the middle stages of the nation's economy, such as are described in §§
+ 62, 66, 90, 207, in which even the relative advantages of industry on a
+ large scale over industry on a small scale, are not much developed the
+ making political rights dependent on the possession of a certain amount of
+ property is certainly a means of promoting equality. Hence, therefore, a
+ reconciliation between the differences of class created by birth, may be
+ effected for a long time here.</p>
+
+ <p class="footnote"> <a name="footnote_204-3" id="footnote_204-3"></a>
+ <a href="#fnanchor_204-3">[204-3]</a>
+ <i>Hermann</i>, Staatsw. Untersuchungen, II, Aufl. 136.</p>
+
+ <p class="footnote"> <a name="footnote_204-4" id="footnote_204-4"></a>
+ <a href="#fnanchor_204-4">[204-4]</a>
+ <i>Necker</i>, Législation et Commerce des Grains, 1775,1. passim. Compare
+ <i>Bacon</i>, Serm fideles, 15, 29, 34, 39.</p>
+
+ <p class="footnote"> <a name="footnote_204-5" id="footnote_204-5"></a>
+ <a href="#fnanchor_204-5">[204-5]</a>
+ <i>Schiller's</i> terrible words:</p>
+
+<p class="footnote poem">
+<span class="i2a">"<i>Etwas muss er sein eigen nennen,</i></span><br />
+<span class="i2"><i>Oder der Mensch wird morden und brennen.</i>"</span><br />
+</p>
+
+ <p class="footnote">&mdash;i. e., "Something must he call his own, or man
+ will murder and burn."</p>
+
+ <p class="footnote">It is one of <i>J. G. Fichte's</i> fundamental
+ thoughts that as all property is based on mutual disclaimer, the person
+ who has nothing of his own, has disclaimed nothing, and therefore reserves
+ his original right to everything. (Geschlossener Handelstaat., Werke, III,
+ 400, 445.)</p>
+
+ <p class="footnote"> <a name="footnote_204-6" id="footnote_204-6"></a>
+ <a href="#fnanchor_204-6">[204-6]</a>
+ <i>Plin.</i>, H. N., XVIII, 7.</p>
+
+ <p class="footnote"> <a name="footnote_204-7" id="footnote_204-7"></a>
+ <a href="#fnanchor_204-7">[204-7]</a>
+ How frequently this circumstance turned to the advantage of the Germans
+ during the migration of nations! Compare <i>Salvian</i>, De Gubern, Dei,
+ VII. Very remarkable answer given by a Roman taken prisoner by Attila, why
+ it must be more agreeable to live among the Huns than in the
+ over-civilized Roman Empire: Prisci legatio, in <i>Niebuhr</i>, Corp.
+ histor. Byzant., I, 191 ff. And thus the conquest of Constantinople by the
+ crusaders, took place amid the jubilation of the populace and of the
+ country people: <i>Nicetus</i>, Chron. Hist. Urbs capta, § 11, 340. This
+ law of nature becomes most apparent when one compares the preponderating
+ power of Rome against Carthage, with its weakness against the Cimbri and
+ Mithradates. May not Hannibal have been to his own country a phenomenon
+ like that which Cæsar was afterwards to Rome? A healthy and united
+ Carthage he certainly could have held against Italy.</p>
+
+ <p class="footnote"> <a name="footnote_204-8" id="footnote_204-8"></a>
+ <a href="#fnanchor_204-8">[204-8]</a>
+ On the tendencies of the later times of the Jewish monarchy toward an
+ oligarchy of money, see <i>Amos</i>, 2, 6 seq.; 6 1 ff.; 8, 5 ff.;
+ <i>Micha</i>, 2; 2 <i>Isaias</i>, 5, 8 seq. Compare <i>Nehem.</i> 5. While
+ Exodus, 30 and 38, mentions over 663,000 taxable men, the ten tribes
+ comprising the kingdom of Israel had only 60,000. XII Kings, 15, 19.
+ <i>Ewald</i>, Geschichte des Volkes Israel, II, 2, 320.</p>
+
+ <p class="footnote"> <a name="footnote_204-9" id="footnote_204-9"></a>
+ <a href="#fnanchor_204-9">[204-9]</a>
+ The spirit of the Grecian moneyed oligarchy is best revealed by
+ <i>Plato</i>, De Republ., VIII, and <i>Aristotle</i>, Polit., III, VI,
+ passim, the first of whom considers the contrast between rich and poor as
+ in itself demoralizing (IV, 422). All that can be called by the name of
+ tradition, the political faith of a people, and the national feeling of
+ right, had, in the Grecian world, been transformed into mere reasoning and
+ concerned itself, with frightful exclusiveness, to the contrast existing
+ between rich and poor. Compare <i>Aristot.</i>, Pol., II, 4, 1, with
+ <i>Droysen</i>, Gesch. des Hellenismus, II, 496 etc., and the citations
+ from <i>Menander</i> in <i>Stob.</i>, Serm., LXXXIX, 503, in which gold
+ and silver are proclaimed almighty. It is a remarkable proof of the
+ <i>omne venalia esse</i> in Greece that <i>Thucydides</i> (II, 65) lauds
+ even <i>Pericles</i>, especially for his incorruptibility.
+ <i>Demosthenes</i> says of his contemporaries, that it excited envy when
+ any one was bribed, laughter when he confessed it; that he who was
+ convicted of it (bribery) was pardoned, and he who blamed it, hated.
+ (Phil., II, 121.) Compare the list in <i>Demosth.</i>, Pro. Cor., 324;
+ <i>Pausan</i>, III, 10. In Athens, on the occasion of the
+ census-constitution imposed forcibly on the state by <i>Antipater</i>,
+ that in a population of 21,000 citizens, only 9,000 had a property worth
+ 2,000 drachmas or more, that is, enough for a man to live on in the most
+ niggardly way, on the highest interest it would yield. If, in addition to
+ this, account be taken of the large number of slaves, the small number of
+ the property class is all the more surprising, inasmuch as Lycurgus'
+ financial administration bears evidence that the people were in a
+ flourishing and comfortable condition; that afterwards, peace for the most
+ part prevailed, and that Alexander's victories enabled Grecian commerce to
+ make large gains. Compare <i>Boeckh</i>, Staatsh. IV, 3, 9.</p>
+
+ <p class="footnote">In Sparta, the governing class finally numbered only
+ 700 families, 100 of which owned all the land, and 600 of which were,
+ therefore, only noble proletarians. It is well known that the social
+ attempts at reform by Agis and Kleomenes only precipitated the downfall of
+ the state. (<i>Plutarch</i>, Agis and Kleomenes.) <i>Aratos</i> owed a
+ great part of the consideration in which he was held to the reputation
+ which he obtained by protecting the property of the Sicyonian exiles
+ (<i>Thirlwall</i>, History of Greece, VIII, 167), while on the other hand,
+ men like <i>Agathocles and Nabis</i> supported their faction by
+ persecution of the rich, new debtor-laws and new division of land.
+ (<i>Polyb.</i>, XIII, 6, XVI, 13, XVII, 17, XXVI, 2; <i>Livy</i>, XXXII,
+ 38, 40, XXXIV, 31, XXXVIII, 34; <i>Plutarch</i>, Cleom, 20.) <i>Livy</i>
+ expressly says that all the <i>optimates</i> were in favor of the Romans,
+ and that the multitude wanted <i>novare omnia</i> (XXXV, 34). On the
+ frightful struggle between these opposite parties, on the revolutions and
+ counter revolutions, see also <i>Polyb.</i>, XIII, 1, 2; XVIII, 36 ff.,
+ XXX, 14; XXII, 21; XXXVIII, 2, 3; <i>Diodor.</i>, XIX, 6, 9; <i>Exc.</i>,
+ 587, 623; <i>Livy</i>, XLI, 25, XLII, 5; Pausan, VII, 14. In Bœotia, no
+ one was for 25 years, chosen by the people for the higher offices, from
+ whom they did not expect a suspension of the administration of justice in
+ the matter of crimes and debts, as well as the spending of the national
+ treasure. (<i>Polyb.</i>, XX, 14, 5, 6.) The events at Corinth, before its
+ conquest by the Romans, forcibly remind one of the Paris Commune of 1871.
+ This decline had, as usual, begun earliest in the colonies: thus, in
+ Sicily, even in <i>Thucyd.</i>, V, 4. Milesian struggle off the πλουτὶς<a
+ name= "fnanchor_TN29" id= "fnanchor_TN29"></a><a href= "#footnote_TN29"
+ class= "fnanchor">[TN 29]</a> and χειρομάχα <a name= "fnanchor_TN30" id=
+ "fnanchor_TN30"></a><a href= "#footnote_TN30" class= "fnanchor">[TN
+ 30]</a> in <i>Plutarch</i>, Qu. Gr., 32; <i>Athen.</i>, XII, 524.</p>
+
+ <p class="footnote"> <a name="footnote_204-10" id="footnote_204-10"></a>
+ <a href="#fnanchor_204-10">[204-10]</a>
+ The disappearance of the middle class in Rome, between the second and
+ third Punic war, was brought about chiefly by the great foreign conquests
+ made by it. An idea of the wealth which the governors of the provinces
+ might extort may be formed from this among other facts, that Cicero
+ originally demanded against Verres a fine of 5,000,000 thalers.
+ (<i>Cic.</i>, in Verrem Div., 5.) Verres is related to have said, that he
+ would be satisfied if he could retain the first year's booty; that during
+ the second, he collected for his defenders; and during the third, for his
+ judges! (<i>Cic.</i>, in Verr., I, 14.) Even <i>Cicero</i> became richer
+ within the space of one year, in Cilicia, where it was well known he was
+ not oppressive, by 110,000 thalers, which sum does not include numerous
+ presents, pictures, etc. (<i>Drumann</i>, Gesch. Roms., VI, 384.) On the
+ frightful oppression and extortion practised by Brutus (!) in Asia, see
+ <i>Cicero</i>, ad. Att, V, 21; VI, 1. <i>Sallust</i>, in his Jugurtha, has
+ shown how such men waged war, and to what extremes their well-deserved
+ want might push them in his Catiline. <i>Patricium scelus!</i> Most of the
+ senators were in debt to Crassus; and this, together with his great
+ political insurance-activity and power in elections, criminal cases at
+ law, etc., it depended that he, for a time, figured beside Cæsar and
+ Pompey.</p>
+
+ <p class="footnote">The wealth of these important personages must, and
+ that not only relatively, have made the poor poorer and their luxury
+ excited the covetousness of the people; but especially the great number of
+ slaves they kept, combined with their pasturage system of husbandry, which
+ rapidly spread over all of Italy after the provinces had emptied their
+ granaries to supply the wants of the sovereign people, must have made it
+ less and less possible for the proletarians to live by the work of their
+ hands. Previously, the lower classes of the free born had been exempted
+ from the military service, while slaves were conscripted for the fleet.
+ Now, all this was changed; and thus was taken away one of the chief causes
+ which had made the labor of free day laborers more advantageous on the
+ larger estates. (<i>Nitzsch</i>, Gracchen, 124 ff., 235 ff.) The spoils of
+ war and conquest caused the higher middle class to prefer to engage in the
+ usurious loaning of money rather than in industry which would much more
+ rapidly have formed a small middle class. (<i>Mommsen</i>, R. G. I, 622
+ ff.)</p>
+
+ <p class="footnote">Hence, the <i>misera ac jejuna plebecula, concionalis
+ hirudo aerarii</i>, according to <i>Cicero</i>, ad Att., I, 16, 6. At a
+ time, when the Roman census showed a population of over 1,500,000,
+ Philippus, 104 before Christ, otherwise a "moderate" man, could claim that
+ there were not 2,000 citizens who had any property. (<i>Cic.</i>, de Off.,
+ II, 21.) True, those few were in such a position, that Crassus would allow
+ that those only were rich, who could feed an army at their own expense.
+ (<i>Cicero</i>, Parad., VI, 61; <i>Plin.</i>, H. N., XXXIII, 47.)
+ Concerning the colossal private fortunes under some of the earlier
+ imperators, see <i>Seneca</i>, De Benef., II, 27; <i>Tacit</i>., Ann.,
+ XII, 53, XIII, 32; XIV, 35; Dial. de Causis, 8, <i>Dio C.</i>, LXIII, 2
+ seq.</p>
+
+ <p class="footnote">The clients of the time, that is the numerous poorly
+ paid idlers treated as things of little value, in the service of the
+ great, correspond, on a small scale, to the position of the great crowd in
+ relation to the emperor. Compare <i>Friedländer</i>, Sittengeschichte
+ Roms., I, 296 ff. As late as the West-Gothic storm, there were many houses
+ which drew 4,000 pounds in gold, and about 1/3 as much in kind, from their
+ estates, per annum. (<i>Plut.</i>, Bibl. Cod., 80, 63, Bekk.) Goddess
+ Pecunia Majestas divitiarum, in <i>Juvenal</i>, I, 113.</p>
+
+ <p class="footnote">If we take the Roman proletariat in its wider extent,
+ the most frightful picture it presents is its slave-wars. Such a war
+ Sicily had shortly before the <i>tribunate</i> of the elder Gracchus, cost
+ over a million (?) livres; and at the same time there was a great uprising
+ of slaves desolating Greece. (<i>Athen.</i>, VI, 83, 87 ff., 104.) A
+ second war broke out in the time of Cimbri. But the most frightful was
+ that under Spartacus, who collected 100,000 men, and the course of this
+ uprising will always remain a type of proletarian and slave revolts. It
+ originated among the most dangerous class of slaves, most dangerous
+ because best prepared for the struggle, the gladiators, and among the
+ immense <i>ergastula</i>, where they were held together in large masses.
+ It spread with frightful rapidity, because the combustible material on
+ which it fed was everywhere to be found. It was conducted with the most
+ revolting cruelty. What the slaves demanded before all else was vengeance,
+ and what dread had a gladiator of a death unaccompanied by torture?</p>
+
+ <p class="footnote">After the first successes of the slaves dissensions
+ broke out among them. Such hordes can nowhere long preserve a higher
+ object than the momentary gratification of their passions&mdash;a fact
+ which shields human society from their rage. Piracy, also, is another side
+ of this proletarian system. It found its strongest aliment in the system
+ of spoliation practiced by the Romans in Asia Minor. The oppressed along
+ the whole coast, joined the pirates "preferring to do violence rather than
+ to suffer." (<i>Appian</i>, B. Mithr., 92, <i>Dio C.</i>, XXXII, 3.) The
+ temples and the wealthy Romans were in special danger. But the worst
+ feature in the horrible picture was that many of the great shared in the
+ spoils with the robbers. They bought slaves and other booty from them at
+ mock prices, even close by the gates of Rome. (<i>Strabo</i>, XIV, 668
+ seq., <i>Dio C.</i>, XXXVI, 5.) Precisely as the slave-wars were looked
+ upon with pleasure by the poorer free men. Incendiarism was one of the
+ chief weapons of mutinous pauperism. (<i>Drumann</i>, IV, 282.) The
+ celebrated bacchanalian trial and the questions of poisoning which
+ followed it as a consequence (186 before Christ) may be looked upon, in
+ Rome, as the first marked symptoms of the disruption between the oligarchy
+ of money and the proletariat. This put the morality of the higher classes
+ in a bad light, while, at the same time, a large slave conspiracy in
+ Apulia, which was not suppressed until the year 185, exhibited the reverse
+ of the picture. Cato, the censor, endeavored to oppose this tendency by
+ high sumptuary taxes, and by establishing proletarian colonies. At the
+ same time we see the various parties among the nobility uniting and the
+ publicans joining them. (<i>Nitzsch</i>, Gracchen, 124 ff.) The history of
+ the last hundred years of the Republic turns chiefly on the three great
+ attempts made by the proletariat to overthrow the citadel of the moneyed
+ oligarchy, under the Gracchi, under Marius and under Cæsar. The last was
+ permanently successful but entailed the loss of the freedom of both
+ parties.</p>
+
+ <p class="footnote">Among the pretty nearly useless remedies employed,
+ besides those described in § 79, I may mention the following also: the
+ great number of agrarian laws intended to lessen estates of too great
+ extent owned by one person, and to restore a free peasant population, in
+ the years 133, 123, 100, 91, 59 before Christ; the law in Hannibal's time
+ (<i>Livy</i>, XXI, 63) that no senator should own a ship with a capacity
+ of more than 300 amphora; the provision (<i>Sueton.</i>, Caes., 42) that
+ all great herd-owners should take at least one-third of their shepherds
+ from the ranks of freemen; the many laws <i>de repetundis</i>, the first
+ of which was promulgated 149 before Christ, intended to protect the
+ provinces against spoliation by the governors; the L. Gabinia, 56 before
+ Christ, which prohibited the loaning by the provinces in Rome; lastly, a
+ rigid enforcement of police provisions against slaves, especially against
+ their bearing arms, which were carried to such an extent, that slaves who
+ had killed a boar with a spear were crucified. (<i>Cicero</i>, in Verr.,
+ II, 3.) The chief rule of every real oligarchy of money is, while they
+ hold the lower classes in general under their yoke with great severity, to
+ keep dangerous elements in good humor at the expense of the state. Among
+ these are especially the rabble in large cities and the soldiery. Compare
+ <i>Roscher</i>, Betrachtungen über Socialismus und Communismus, 436,
+ 437.</p>
+
+ <p class="footnote"> <a name="footnote_204-11" id="footnote_204-11"></a>
+ <a href="#fnanchor_204-11">[204-11]</a>
+ In medieval Italy, also, popular freedom was lost through a moneyed
+ oligarchy and a proletariat. <i>Popolo grasso</i> and <i>minuto</i>
+ (<i>bourgeoisie</i>&mdash;<i>peuple</i>) in Florence. The former were
+ reproached especially with the breach of trust in the matter of the public
+ moneys (<i>Sismondi</i>, Gesch. der Ital. Republiken, II, 323, seq.),
+ which reminds one of the French cry, <i>corruption</i> in 1847.
+ <i>Machiavelli</i> gives a masterly description of the class contrasts
+ during the last quarter of the fourteenth century, in his Istoria
+ Fiorent., III, a. 1378, 4. The poor, whose spokesmen recall the most
+ desperate shibboleths of modern socialists, dwell principally on this,
+ that there is only one important difference, that between rich and poor;
+ that all men are by nature entirely equal; that people get rich only
+ through deceit or violence; that the poor want revenge etc. It is
+ significant how, in Florence, the largest banker finally became absolute
+ despot, and that contemporaneously in Genoa, the Bank of St. George, in a
+ measure, absorbed the state; the former supported by numerous loans made
+ to influential persons like Crassus (<i>Machiavelli</i>, Ist. Fior., VII);
+ the latter by the overstraining of the system of national debt.</p>
+
+<p class="p2 center"><a name="S205"></a>SECTION CCV.<span
+class='pagenum'>[Pg 174]</span></p>
+
+<p class="center smaller">DISTRIBUTION OF THE NATIONAL
+INCOME.&mdash;HEALTHY DISTRIBUTION.</p>
+
+<p>Hence a harmony of the large, medium and small incomes <span
+class='pagenum'>[Pg 175]</span> may be considered the indispensable
+condition of the economic <span class='pagenum'>[Pg 176]</span> prosperity
+of a people.<a name="fnanchor_205-1" id="fnanchor_205-1"></a><a href=
+"#footnote_205-1" class="fnanchor">[205-1]</a> This prosperity is best
+secured when the medium-class income prevails, when no citizen is so rich
+that he can buy the others, and no one so poor that he might be compelled
+to sell himself. (<i>J. J. Rousseau.</i>)<a name= "fnanchor_205-2" id=
+"fnanchor_205-2"></a><a href= "#footnote_205-2" class=
+"fnanchor">[205-2]</a> Where there is not a numerous class of citizens who
+have time enough to serve the state even gratis, as jurymen, overseers of
+the poor, municipal officers, representatives of the people etc. (compare §
+63), and property enough to be independent of the whims and caprices of
+others, and to maintain themselves and the state in times of need, even the
+most excellent of constitutions must remain a dead letter. Nor should there
+be an entire absence of large fortunes, and even of inherited large
+fortunes. The changes of ministry which accompany constitutional government
+are fully possible only when the choice of men who would not lose their
+social position by a cessation of their salaries as public functionaries is
+not altogether <span class='pagenum'>[Pg 177]</span> too limited.<a name=
+"fnanchor_205-3" id="fnanchor_205-3"></a><a href= "#footnote_205-3"
+class="fnanchor">[205-3]</a> Thus the transaction of the most important
+political business, especially that which relates to foreign affairs,
+requires a peculiar elasticity of mind, and a capacity for routine on the
+grandest scale, which with very rare exceptions, can be acquired only by
+habituation to them from childhood, and which are lost as soon as the care
+for food is felt. The bird's-eye-view of those who are born "great" does
+not, by any means, embrace the whole truth of human things, but it does a
+very important side of it. Among this class, as a rule, it is easiest to
+find great party leaders, while leaders who have to be paid by their party,
+generally become in the long run, mere party tools.<a name="fnanchor_205-4"
+id= "fnanchor_205-4"></a><a href="#footnote_205-4" class=
+"fnanchor">[205-4]</a> It is true that it requires great intellectual and
+moral power to resist the temptations which a brilliant hereditary
+condition presents; temptations especially to idleness, to pride and
+debauchery. For ordinary men, it is a moral and, in the end, an economic
+blessing, that they have to eat their bread in the sweat of their brow,<a
+name="fnanchor_205-5" id="fnanchor_205-5"></a><a href="#footnote_205-5"
+class="fnanchor">[205-5]</a> and that they can grow rich only by
+long-continued frugality.<a name= "fnanchor_205-6" id=
+"fnanchor_205-6"></a><a href="#footnote_205-6" class=
+"fnanchor">[205-6]</a> However, the distribution of the national income,
+and every change in that same distribution, constitute one of the most
+important but <span class='pagenum'>[Pg 178]</span> at the same time one of
+the most obscure departments of statistics.<a name= "fnanchor_205-7" id=
+"fnanchor_205-7"></a><a href= "#footnote_205-7" class=
+"fnanchor">[205-7]</a> When inequality increases because the lower classes
+absolutely decline, there is no use in talking any longer about the
+prosperity of the nation.<a name= "fnanchor_205-8"
+id="fnanchor_205-8"></a><a href="#footnote_205-8"
+class="fnanchor">[205-8]</a> It is different, of course, when <span
+class='pagenum'>[Pg 179]</span> only the higher classes become, relatively
+speaking, higher yet. But even this latter kind of inequality may operate
+disastrously, <span class='pagenum'>[Pg 180]</span> inasmuch as it
+nourishes the most dangerous tendency of democracy, that of envy towards
+those who are better off.</p>
+
+ <p class="footnote"> <a name="footnote_205-1" id="footnote_205-1"></a>
+ <a href="#fnanchor_205-1">[205-1]</a>
+ <i>Verri</i> Meditazioni, VI.</p>
+
+ <p class="footnote"> <a name="footnote_205-2" id="footnote_205-2"></a>
+ <a href="#fnanchor_205-2">[205-2]</a>
+ <i>Aristotle's</i> view that, in a good state, the middle class should
+ preponderate. (Polit. IV, 6, Sch.) <i>Sismondi</i> says: <i>la richesse se
+ réalise en jouissances; mais la jouissance de l'homme riche ne s'accroît
+ pas avec ses richesses</i>. (Etudes sur l'Economie politique, 1837, I,
+ 15.)</p>
+
+ <p class="footnote"> <a name="footnote_205-3" id="footnote_205-3"></a>
+ <a href="#fnanchor_205-3">[205-3]</a>
+ If state offices were to be filled by doctors or lawyers who live by their
+ practice, after a time, only those could be had who had no large practice
+ to sacrifice, that is, beginners or obscuranti.</p>
+
+ <p class="footnote"> <a name="footnote_205-4" id="footnote_205-4"></a>
+ <a href="#fnanchor_205-4">[205-4]</a>
+ Per contra, see <i>Bazard</i>, Doctrine de Saint Simon, 323. But
+ <i>Sismondi</i> is certainly right: <i>nous ne croyons point, que les
+ hommes qui doivent servir à l'humanité de flambeau naissent le plus
+ souvent au sein de la classe riche; mais elle seule les apprécie et a le
+ loisir de jouir de leurs travaux</i>. (Etudes, I, 174.)</p>
+
+ <p class="footnote"> <a name="footnote_205-5" id="footnote_205-5"></a>
+ <a href="#fnanchor_205-5">[205-5]</a>
+ To appreciate the demoralizing effects of an income obtained without labor
+ and without trouble on men of small culture, we need only witness the
+ bourgeoisie at great watering places, pilgrimage places, seats of courts
+ and university cities supported largely by students. Similarly at Mecca,
+ Medina, Meschhed, Rome, etc. (<i>Ritter</i>, Erdkunde VIII, 295 seq. IX,
+ 32), and even in Palestine, during the crusades, when the miserable
+ Pullanes counted on the tribute of the pilgrims. (<i>Wilken</i>, VII, 369,
+ according to <i>Jacob de Vitriaco</i>.)</p>
+
+ <p class="footnote"> <a name="footnote_205-6" id="footnote_205-6"></a>
+ <a href="#fnanchor_205-6">[205-6]</a>
+ A man with $100,000 a year has a much less incentive to make savings than
+ 100 men with $1,000 each per annum,<a name= "fnanchor_TN31" id=
+ "fnanchor_TN31"></a><a href= "#footnote_TN31" class= "fnanchor">[TN
+ 31]</a> for the reason that his economic wants are already all richly
+ satisfied, and he can have little hope of improving it by saving. (<i>von
+ Mangoldt</i>, V. W. L., 141.)]</p>
+
+ <p class="footnote"> <a name="footnote_205-7" id="footnote_205-7"></a>
+ <a href="#fnanchor_205-7">[205-7]</a>
+ <i>Harrington's</i> fundamental thought (1611-1677, Works, 1700) is, that
+ the nature of the constitution of a state depends on the distribution of
+ the ownership of its land. "Balance of property!" Where, for instance, one
+ person owns all the land or the larger portion of it, we have a despotism;
+ where the distribution is more equal, a democracy, etc. All real
+ revolutions are based upon a displacement of the centre of gravity of
+ property, since in the long run, superstructure and foundation can not be
+ out of harmony with each other. For this reason, agrarian laws are the
+ principal means to prevent revolutions. (<i>Roscher</i>, Gesch. der
+ English. Volkswirthschaftslehre, 53 ff.) <i>Montesquieu</i> also pays
+ special attention to the political consequences of the distribution of
+ wealth. Thus, for instance, in monarchies, the creation of large fortunes
+ should be promoted by the right of primogeniture; in aristocracies, on the
+ other hand, the great wealth of a few nobles is as detrimental as that of
+ extreme poverty. (Esprit des Lois, V, 8, 9.)</p>
+
+ <p class="footnote"> <a name="footnote_205-8" id="footnote_205-8"></a>
+ <a href="#fnanchor_205-8">[205-8]</a>
+ The common assertion of the socialists, that the inequality of property is
+ frightfully on the increase, is as far from being proved as is the
+ opposite one of <i>Hildebrand</i>, Nat. Oek. der Gegenwart und Zukunft, I,
+ 245 ff. According to <i>Macaulay</i>, Hist. of England, ch. 3, there were,
+ in England, in 1685, only about three (ducal) families with an annual
+ income of about £20,000 a year. The average income of a lord amounted to
+ £3,000; of a baronet, to £900; of a member of the house of commons, to
+ scarcely £800; and a lawyer with £1,000 per annum was considered a very
+ important personage. At the same time, there were 160,000 families of free
+ peasants, that is more than 1/7 of the whole population, whose average
+ income amounted to from £60 to £70. For the year 1821, <i>Marshall</i>,
+ Digest of all Accounts, etc., II, 1833, assumes, that there were 4,000
+ families with over £5,000 yearly income; 52,000 families with from £1,500
+ to £5,000; 386,000 families with from £200 to £1,000; 2,500,000 families
+ with less than £200. Compare, <i>per contra</i>, the Edinburg Review,
+ 1835. The income tax statistics of 1847 show that 22 persons had an income
+ of at least £50,000 a year; 376 persons, from £10,000 to £50,000; 788,
+ from £5,000 to £10,000; 400, from £4,000 to £5,000; 703, from £3,000 to
+ £4,000; 1,483, from £2,000 to £3,000; 5,234, from £1,000 to £2,000;
+ 13,287, from £500 to £1,000; 91,101, from £150 to £500.</p>
+
+ <p class="footnote">If we compare these numbers with the corresponding
+ ones of the income tax of 1812, the numbers of those who returned an
+ income of £150 to £500 increased 196 per cent.; of those with an income of
+ from £500 to £1,000, 148 per cent.; of from £1,000 to £2,000, 148 per
+ cent.; of from £2,000 to £5,000, 118 per cent.; of from £5,000 and more,
+ 189 per cent.; while the population in general had increased by about 60
+ per cent. Compare Athenæum, August, 1850; Edinburgh Rev., April, 1857.
+ Between 1848 and 1857, the development was less favorable, so that the
+ incomes of from £150 to £500 subject to taxation, increased only 7 per
+ cent.; those from £500 to £1,000 about 9.56 per cent.; those from £10,000
+ to £50,000, by 42.4, and those over £50,000, 142.1 per cent. Between 1858
+ and 1864, the incomes derived from industry and commerce, subject to
+ taxation below £200, had increased about 19.4 per cent.; those over
+ £10,000, 59 per cent.; while the aggregate amount of all taxed incomes in
+ this category increased 19 per cent. (Stat. Journal, 1865, 546.) According
+ to <i>Baxter</i>, The National Income of the United Kingdom, 1868, there
+ are now 8,500 persons with a yearly income of £5,000 and more, who draw in
+ the aggregate 15.6 per cent. of the national British income, and on the
+ average nearly £15,000 each. There are, further, 48,800 persons with a
+ yearly income of from £1,000 to £5,000; 178,300 with from £300 to £1,000;
+ 1,026,400 with from £100 to £300; and 1,497,000 with less than £100 a year
+ from their property. In addition to this, 10,961,000 workmen on wages,
+ with an aggregate income of £324,600,000. Compare §§ 172, 230.</p>
+
+ <p class="footnote">In France, the number of so-called <i>électeurs</i>,
+ who paid direct taxes to at least the amount of 200 francs was, in 1831,
+ 166,583, and increased uninterruptedly until 1845, when it was 238,251,
+ while the population had increased only 8.5 per cent.</p>
+
+ <p class="footnote">In Prussia, the revenue from class-taxation up to
+ 1840, increased, unfortunately, in a smaller proportion than the
+ population: hence the lowest classes must have increased relatively more
+ than the others. (<i>Hoffmann</i>, Lehre von den Steuern, 176 ff.) Between
+ 1852 and 1873, according to the statistical returns from class-taxation
+ and of the classified income tax, the growth of large incomes in the
+ provinces of old Prussia, seems to have been much more rapid than that of
+ the smaller ones. Thus, for every 100 taxpayers, with an income of from
+ 400 to 1,000 thalers, there was an increase to 175.5; of from 1,000 to
+ 1,600 thalers, for every previous 100, 210.2; from 1,600 to 3,200 thalers,
+ 232.3; of from 3,200 to 6,000, 253.9; of from 6,000 to 12,000 thalers,
+ 324.8; of from 12,000 to 24,000, 470.6; of from 24,000 to 52,000 thalers,
+ 576.3; of from 52,000 to 100,000 thalers, 568.4; of from 100,000 to
+ 200,000 thalers, 533.3; of over 200,000, 2,200. Hence, probably, a greater
+ growth towards the top, than the general increase in the population will
+ account for.</p>
+
+ <p class="footnote">This concentration of property took place most
+ noticeably in Berlin, where for instance, between 1853 and 1875 the
+ incomes of from 1,000 to 1,600 thalers increased 212.2 per cent.; those
+ from 24,000 to 52,000, 994.1 per cent. There are now in the whole state
+ 2.24 per cent. of the population (including those dependent on them)
+ subject to the income tax; that is, estimated as having a yearly income of
+ 1,000 thalers. Of the remaining 97.76 per cent., more than a quarter, and
+ probably more than one-half, are as a class free from taxation, because
+ their income is presumably less than 140 thalers (6,049,699 against
+ 532,367, exempt for other reasons and 4,850,791 belonging to classes
+ subject to taxation: these three numbers probably not including
+ dependents). Among the payers of an income tax, there are 79,464 with an
+ average income of 1,237 thalers per annum; 41,366 with 2,171 thalers;
+ 12,305 with 4,279 thalers; 4,030 with 8,383 thalers; 1,655 with 16,527
+ thalers; 513 with 32,428 thalers; 163 with 65,595 thalers; 39 with 137,692
+ thalers; 21 with 427,142 thalers; and one with 1,700,000 thalers per
+ annum. (Preuss. statist. Ztschr., 1875, 116, 132, 142, 145, 149.) As the
+ reverse of this picture, we may take the fact that, in 1870, of 1,047,974
+ cases of guardianship, there were only 208,614 in which there was any
+ property to be looked after. (Justiz-Minist-Blatt, 1872, No. 6.)</p>
+
+ <p class="footnote">The figures from Bremen are very favorable. The
+ incomes subject to taxation amounted, in 1847, to 71.6 thalers per capita;
+ in 1869, to 131.2.<a name= "fnanchor_TN32" id= "fnanchor_TN32"></a><a
+ href= "#footnote_TN32" class= "fnanchor">[TN 32]</a> The incomes subject
+ to taxation in class No. 1, that is from 250 to 399 thalers, increased 78
+ per cent.; in class No. 2, 400 to 499 thalers, 45 per cent.; in class No.
+ 3, 500 thalers and more, by 57 per cent. The average income of the third
+ class amounted, in 1847-50, to 1,952 thalers; 1866-69, to 2,439 thalers.
+ In 1848, there were, of estates of over 3,000 thalers subject to taxation,
+ only 38 to every 1,000 inhabitants; in 1866, 49. (Jahrb. f. amtl.
+ Statistik Bremens, 1871, Heft 2, p. 185 seq.)</p>
+
+<p><span class='pagenum'>[Pg 181]</span></p>
+
+<h3 class="p4">BOOK IV.</h3>
+
+<h3>CONSUMPTION OF GOODS.</h3>
+
+<p><span class='pagenum'>[Pg 182]</span><br />
+<span class='pagenum'>[Pg 183]</span></p>
+
+<h3 class="p4">CHAPTER I.</h3>
+
+<h3>CONSUMPTION OF GOODS IN GENERAL.</h3>
+
+<p class="p2 center"><a name="S206"></a>SECTION CCVI.</p>
+
+<p class="center smaller">NATURE AND KINDS OF CONSUMPTION.</p>
+
+<p>As it is as little in the power of man to destroy matter as it is to
+create it, we mean by the consumption of goods, in the broad sense of the
+word, the abolition of or the doing away with an utility without any regard
+to the question whether another higher utility takes its place; in its
+narrower sense (consumption proper), a decrease of resources of any kind.
+Consumption is the counterpart of production (§ 30), the top of the tree of
+which production is the roots, and the circulation and distribution of
+goods the trunk. (<i>A. Walker.</i>) There is, also, what Riedel calls
+immaterial consumption, as when a utility disappears, either because the
+want itself to which it ministers disappears or because views have changed
+as to the means to be employed towards its satisfaction.<a name=
+"fnanchor_206-1" id="fnanchor_206-1"></a><a href="#footnote_206-1"
+class="fnanchor">[206-1]</a></p>
+
+ <p class="footnote"> <a name="footnote_206-1" id="footnote_206-1"></a>
+ <a href="#fnanchor_206-1">[206-1]</a>
+ Diminutions of value, such, for instance, as an almanac, a newspaper,
+ etc., undergoes simply from the appearance of the next years' etc.; of a
+ shield or a part of an officer's uniform with the initials of the reigning
+ sovereign, only because of the fact of a new succession to the throne. A
+ boot or a glove loses a great part of its value when its mate is
+ destroyed. (<i>Rau</i>, Lehrbuch, § 319.)</p>
+
+<p class="p2 center"><a name="S207"></a>SECTION CCVII.<span
+class='pagenum'>[Pg 184]</span></p>
+
+<p class="center smaller">NATURE AND KIND OF CONSUMPTION.&mdash;THE MOST
+USUAL KIND.</p>
+
+<p>The commonest kind of consumption is that caused by the use of a thing,
+or by the employing of it for the purpose of acquisition or of enjoyment.<a
+name="fnanchor_207-1" id="fnanchor_207-1"></a><a href="#footnote_207-1"
+class="fnanchor">[207-1]</a> From time immemorial, enjoyment-consumption
+has been, preponderantly, the affair of women, as acquisition-consumption
+has been the business of men.<a name= "fnanchor_207-2" id=
+"fnanchor_207-2"></a><a href= "#footnote_207-2" class=
+"fnanchor">[207-2]</a> Other circumstances being equal, the degree or
+extent of consumption by use (use-consumption) is determined by national
+character. Thus, for instance, the cleanliness and love of order
+characteristic of the Dutch have contributed greatly to the long
+preservation in good condition of their dwellings and household articles.<a
+name= "fnanchor_207-3" id= "fnanchor_207-3"></a><a href="#footnote_207-3"
+class= "fnanchor">[207-3]</a></p>
+
+<p>In the higher stages of civilization, the use of goods is wont to be
+divided more and more into special branches, according to the different
+peculiarities of the goods themselves, and of the different wants of men; a
+course of things which is, both as cause and effect, intimately related to
+the division of labor. I here speak of a principle of <i>division of
+use</i> (differentiation and specialization). Thus, for instance, Lorenz
+Lange, in 1722, found only one kind of tea in the trade between Russia and
+China; Müller, in 1750, found seven; Pallas, in 1772, ten; and Erman, in
+1829, about seven hundred.<a name= "fnanchor_207-4" id=
+"fnanchor_207-4"></a><a href= "#footnote_207-4" class=
+"fnanchor">[207-4]</a> As the number of <span class='pagenum'>[Pg
+185]</span> gradations of different kinds of the same goods increases with
+civilization, there is, in times of war, a retrogression in this respect,
+to a lower economic stage.<a name="fnanchor_207-5"
+id="fnanchor_207-5"></a><a href="#footnote_207-5"
+class="fnanchor">[207-5]</a></p>
+
+<p><span class='pagenum'>[Pg 186]</span>Opposed to this, we have the
+principle of the combination of use. There are numberless kinds of goods
+which may serve a great many just as well as they can one exclusive user;
+and this either successively or simultaneously, inasmuch as there is no
+necessity why, with the increasing use of the object, the size of the
+object itself should increase in an equal proportion. (According to Marlo:
+wealth usable by one; wealth usable by many; wealth usable by all.) Thus,
+for instance, a public library may be incomparably more complete, and
+accessible in a still higher degree than ten private libraries which
+together cost as much as it did. And so, a restaurant-keeper may serve a
+hundred guests at the same time, with a much greater table-variety, more to
+their taste, and at a more convenient time, than if each person made the
+same outlay for his private kitchen.<a name= "fnanchor_207-6" id=
+"fnanchor_207-6"></a><a href="#footnote_207-6" class=
+"fnanchor">[207-6]</a> While formerly, only the great could travel rapidly,
+combination of use has enabled even the lower classes to do so in our own
+days. There is, doubtless, a dark side to this picture, too. Combination of
+use requires frequently great sacrifices of personal independence, which
+should not be underestimated when they affect individuality of character,
+or threaten the intimacy and closeness of family life. It is, however, a
+bad symptom when the division <span class='pagenum'>[Pg 187]</span> of use
+increases without any corresponding combination of use.<a
+name="fnanchor_207-7" id="fnanchor_207-7"></a><a href="#footnote_207-7"
+class="fnanchor">[207-7]</a><a name="fnanchor_207-8" id="fnanchor_207-8">
+</a> <a href="#footnote_207-8" class="fnanchor">[207-8]</a></p>
+
+ <p class="footnote"> <a name="footnote_207-1" id="footnote_207-1"></a>
+ <a href="#fnanchor_207-1">[207-1]</a>
+ We should also mention here destructive consumption, where the defenders
+ of a country destroy buildings, supplies, etc., only that the enemy may
+ not use them.</p>
+
+ <p class="footnote"> <a name="footnote_207-2" id="footnote_207-2"></a>
+ <a href="#fnanchor_207-2">[207-2]</a>
+ Compare Die Lebensaufgabe der Hausfrau, Leipzig, 1853; <i>von Stein</i>,
+ Die Frau auf dem Gebiete der National Oekonomie, 1875, and the beautiful
+ remarks of <i>Schäffle</i>, N. Oek., 166; and <i>Lotz</i>, Mikrokosmus, II,
+ 370 ff.</p>
+
+ <p class="footnote"> <a name="footnote_207-3" id="footnote_207-3"></a>
+ <a href="#fnanchor_207-3">[207-3]</a>
+ In Germany horses are said to last, on an average, 18 years; in England
+ 25; in France and Belgium, only 12 years. (See for the proofs of this
+ <i>Rau</i>, Handbuch II, § 168.) The more civilized a people are, the less
+ do they completely destroy values by use; and the more do they use their
+ old linen, etc. as rags; their remains of food as manure, etc.
+ (<i>Roesler</i>, Grunds., 552.)</p>
+
+ <p class="footnote"> <a name="footnote_207-4" id="footnote_207-4"></a>
+ <a href="#fnanchor_207-4">[207-4]</a>
+ <i>Ritter</i>, Erdkunde, III, 209. Thus, the French in the 13th century
+ were acquainted with only three kinds of cabbage; in the 16th, with six,
+ about 1651, with 12; they are now acquainted with more than 50; in the
+ 16th century they knew only 4 kinds of sorrel; in 1651, 7; about 1574,
+ only 4 kinds of lettuce; to-day they know over 50; under Henry II., they
+ were acquainted with 2 or 3 kinds of melons; in the 17th century, with 7;
+ now they are acquainted with over 40. (<i>Roquefort</i>, Histoire de la
+ Vie privée des Fr., I, 179 ff.) Instead of the four kinds of pears
+ mentioned by de Serre (1600), there were, in 1651, about 400. (I, 272.)
+ Liebaud, 1570, knew only 19 kinds of grapes; de Serre, 41.
+ (<i>Roquefort</i>, III, 29 ff.) According to the "Briefen eines
+ Verstorbenen," IV, 390, the first kitchen-gardener in London had 435 kinds
+ of salad, 240 of potatoes, and 261 of pease.</p>
+
+ <p class="footnote">And so precisely in ancient times. While the earlier
+ Greeks speak of but one οἶνος,<a name= "fnanchor_TN33" id=
+ "fnanchor_TN33"></a><a href= "#footnote_TN33" class= "fnanchor">[TN
+ 33]</a> even at the most sumptuous feasts (compare, however, <i>Homer</i>,
+ Il. XI, 641;) and while even in the time of Demosthenes only very few
+ kinds of wine were known (<i>Becker</i>, Charicles, I, 455), <i>Pliny</i>,
+ H. N. XIV, 13, was acquainted with about 80. In this respect the moderns
+ have never returned to ancient simplicity; at least the fabliau, La
+ Bataille des Vins, introduces us to 47 kinds of French wine in the 13th
+ century. (Compare also <i>Wackernagel</i> in <i>Haupt's</i> Zeitschrift
+ für deutsches Alterth., VI. 261 ff., and <i>Henderson</i>, History of
+ ancient and modern Wines, 1824.) The Lacedemonians, with their intentional
+ persistence in a lower stage of civilization, used the same garment in
+ winter and summer (<i>Xenoph.</i>, De Rep. Laced., II, 4); while the
+ contemporaries of Athenæos (III, 78 ff.) were acquainted with 72 kinds of
+ bread. With what a delicate sense for good living the Romans in Caesar's
+ time had discovered the best supply places for chickens, peacocks, cranes,
+ thunny-fish, muraena, oysters and other shell-fish, chestnuts, dates,
+ etc., may be seen in <i>Gellius</i>, N. A., VII, 16. Compare
+ <i>Athen.</i>, XII, 540.</p>
+
+ <p class="footnote">In the middle age of Italy, the houses had almost
+ always three rooms: <i>domus</i> (kitchen), <i>thalamus</i>,
+ <i>solarium</i>. (<i>Cibrario</i>, E. P. del medio Evo, III, 45.) The
+ manors or masters' houses built on the estates of Charlemagne had 3 and 2
+ rooms, sometimes only 1, and sometimes 2 rooms and 2 bedrooms. According
+ to an old document of 895, a shed was worth 5 sols, a well-built manor 12.
+ (<i>Anthon</i>, Geschichte der deutschen Landwirth., I, 249 ff., 311.) The
+ Lex Alamanorum, tit. 92, provided that a child, in order to be considered
+ capable<a name= "fnanchor_TN34" id= "fnanchor_TN34"></a><a href=
+ "#footnote_TN34" class= "fnanchor">[TN 34]</a> of living, should have seen
+ the roof and four walls of the house! See an able essay, capable of being
+ still further developed, by <i>E. Herrmann,</i> in which he endeavors to
+ explain the <i>division of use</i> and of labor on Darwin's hypothesis of
+ the origin of species in the D. Vierteljahrsschrift, Januar., 1867.</p>
+
+ <p class="footnote"> <a name="footnote_207-5" id="footnote_207-5"></a>
+ <a href="#fnanchor_207-5">[207-5]</a>
+ Thus, 1785-1795, the best Silesian wool cost 60, the worst 26, thalers per
+ cwt.; in 1805, on account of the great demand for cloth to make military
+ uniforms, the former cost 78, the latter 50 thalers. (<i>Hoffmann</i>,
+ Nachlass, 114.)</p>
+
+ <p class="footnote"> <a name="footnote_207-6" id="footnote_207-6"></a>
+ <a href="#fnanchor_207-6">[207-6]</a>
+ The one large kitchen naturally requires much less place, masonry, fuel,
+ fewer utensils, etc., than 100 small ones. Think of the relatively large
+ savings effected by the use of one oven kept always heated! Even the
+ Lacedemonians called their meal associations φειδίτια,<a name=
+ "fnanchor_TN35" id= "fnanchor_TN35"></a><a href= "#footnote_TN35" class=
+ "fnanchor">[TN 35]</a> i. e., save-meals. Dainties proper can be consumed
+ only in very small portions, but cannot well be prepared in such
+ quantities. A guest at a first class Parisian restaurant has, at a
+ moderate price, his choice of 12 <i>potâges</i>, <i>24 hors d'œuvres</i>,
+ <i>15-20 entrées de bœuf</i>, <i>20 entrées de mouton</i>, <i>30 entrées
+ de volaille et gibier</i>, <i>15-20 entrées de veau</i>, <i>12 de
+ pâtisserie</i>, <i>24 de poisson</i>, <i>15 de rôts</i>, <i>50
+ entremets</i>, <i>50 desserts</i>; and, in addition, perhaps 60 kinds of
+ French wine alone. What more can a princely table offer in this respect?
+ Compare <i>Brillat-Savarin</i>, Physiologie du Goût, Médit., 28.</p>
+
+ <p class="footnote"> <a name="footnote_207-7" id="footnote_207-7"></a>
+ <a href="#fnanchor_207-7">[207-7]</a>
+ In Diocletian's time, there was purple silk worth from 2½ thalers to 250
+ thalers per pound. (<i>Marquardt</i>, Röm. Privatalterthümer, II,
+ 122.)</p>
+
+ <p class="footnote"> <a name="footnote_207-8" id="footnote_207-8"></a>
+ <a href="#fnanchor_207-8">[207-8]</a>
+ Concerning the application of the above principle in industry and in the
+ care of the poor, see <i>infra</i>. The advantages afforded by consumption
+ in common, or the combination of use, have been enthusiastically dwelt
+ upon by <i>Fourier</i>, and the organization of his phalansteries is based
+ essentially on that principle. In these colossal palaces, which, spite of
+ all their magnificence, cost less than the hundred huts of which they take
+ the place, a ball is given every evening, because it is cheaper to light
+ one large hall, in which all may congregate. The division of use, or of
+ consumption also, is here developed in a high degree. When 12 persons eat
+ at the same table they have 12 different kinds of cheese, 12 different
+ kinds of soup, etc. Even little children are allowed to yield to the full
+ to their gluttonous propensities, since on them depends the productive
+ activity of the so-called <i>séries passionnées</i>.<a name=
+ "fnanchor_TN36" id= "fnanchor_TN36"></a><a href= "#footnote_TN36" class=
+ "fnanchor">[TN 36]</a> Compare Nouveau Monde, 272. The Saint-Simonists
+ also characterize the <i>association universelle</i> as the highest goal
+ of human development. (<i>Bazard</i>, Exposition, 144 ff.) On the danger
+ of this development to family life, see <i>Sismondi</i>, Etudes I, 43.</p>
+
+<p class="p2 center"><a name="S208"></a>SECTION CCVIII.</p>
+
+<p class="center smaller">NATURE AND KINDS OF CONSUMPTION.&mdash;NOTIONAL
+CONSUMPTION.</p>
+
+<p>By the notional consumption (<i>Meinungsconsumtion</i>), as Storch calls
+it, operated by a change of fashion, many goods lose their value, without
+as much as suffering the least change of form or leaving the merchant's
+shop. This kind of consumption, too, is exceedingly different in different
+nations. Thus, in Germany, for instance, fashions are much more persistent
+than in France.<a name="fnanchor_208-1" id="fnanchor_208-1"></a><a
+href="#footnote_208-1" class="fnanchor">[208-1]</a> In the most flourishing
+times of Holland, only noblemen and officers changed with the fashions,
+while the merchants and other people wore their clothes until they <span
+class='pagenum'>[Pg 188]</span> went to pieces.<a name="fnanchor_208-2"
+id="fnanchor_208-2"></a><a href="#footnote_208-2" class=
+"fnanchor">[208-2]</a> In the East, fashions in clothing are very
+constant;<a name="fnanchor_208-3" id= "fnanchor_208-3"></a><a
+href="#footnote_208-3" class="fnanchor">[208-3]</a> but the expensive
+custom there prevails, for a son, instead of moving into the house occupied
+by his father, to let it go to ruin, and to build a new one as a matter of
+preference. The same is true even in the case of royal castles. Hence, in
+Persia, most of the cities are half full of ruins, and are in time moved
+from one place to another.<a name= "fnanchor_208-4" id=
+"fnanchor_208-4"></a><a href="#footnote_208-4" class=
+"fnanchor">[208-4]</a></p>
+
+<p>The national income of a country is, on the whole, much less affected by
+a change of fashion than the separate incomes of its people. The same whim
+which lowers the value of one commodity increases the value of another; and
+what has ceased to be in fashion among the rich, becomes accessible,
+properly speaking, to the poorer classes of the community for the first
+time.<a name= "fnanchor_208-5" id= "fnanchor_208-5"></a><a href=
+"#footnote_208-5" class= "fnanchor">[208-5]</a> The want of varying his
+enjoyments is so peculiar to man, and so intimately connected with his
+capacity for progress, that it cannot in itself be blamed. But if this want
+be immoderately yielded to, if the well-to-do should despise every article
+which has not the charm of complete novelty, <span class='pagenum'>[Pg
+189]</span> the advantages of the whole pattern-system, by means of which
+the preparation of a large number of articles from the same model at a
+relatively small cost, would be lost. Besides, fashion, which makes
+production in large quantities, for the satisfaction of wants that are
+variable and free, possible, frequently means even a large saving in the
+cost of production.<a name="fnanchor_208-6" id="fnanchor_208-6"></a><a
+href="#footnote_208-6" class="fnanchor">[208-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_208-1" id="footnote_208-1"></a>
+ <a href="#fnanchor_208-1">[208-1]</a>
+ The consequences of this are very important to the character of French and
+ German industry. (<i>Junghanns</i>, Fortschritte des Zollvereins, I, 28,
+ 51, 58.) Rapidly as the Parisian fashions in dress make their way into the
+ provinces, their fashions in the matter of the table are very slow to do
+ so. (<i>Rocquefort</i>, Hist. de la Vie privée des Fr., I, 88 seq.)</p>
+
+ <p class="footnote"> <a name="footnote_208-2" id="footnote_208-2"></a>
+ <a href="#fnanchor_208-2">[208-2]</a>
+ <i>Sir W. Temple.</i> Observations on the U. Provinces, ch. 6.</p>
+
+ <p class="footnote"> <a name="footnote_208-3" id="footnote_208-3"></a>
+ <a href="#fnanchor_208-3">[208-3]</a>
+ As most persons adorn themselves for the sake of the opposite sex, this
+ invariability is caused by the oriental separation of two sexes. Our
+ manufacturers would largely increase their market, if they could succeed
+ in civilizing the East in this respect. In Persia, shawls are frequently
+ inherited through many generations, and even persons of distinction buy
+ clothes which had been worn before. (<i>Polak</i>, Persien, I, 153.) In
+ China, the Minister of Ceremonies rigidly provided what clothes should be
+ worn by all classes and under severe penalties. (<i>Davis</i>, The
+ Chinese, I, 352 seq.)</p>
+
+ <p class="footnote"> <a name="footnote_208-4" id="footnote_208-4"></a>
+ <a href="#fnanchor_208-4">[208-4]</a>
+ <i>Jaubert</i>, Voyage en Perse, 1821. While cities like Seleucia,
+ Ctesiphon, Almadin, Kufa, and even Bagdad, were built from the ruins of
+ Babylon.</p>
+
+ <p class="footnote"> <a name="footnote_208-5" id="footnote_208-5"></a>
+ <a href="#fnanchor_208-5">[208-5]</a>
+ In Moscow, merchants close their accounts at Easter. Then begins a new
+ cycle of fashions, after which all that remains is sold at mock-prices.
+ (<i>Kohl</i>, Reise, 98.) In Paris, there are houses which buy up
+ everything as it begins to go out of fashion and then send it into the
+ provinces and to foreign parts. Thus, there are immense amounts of old
+ clothing shipped from France and England to Ireland. Hence, the latter
+ country can have no national costume appropriate to the different classes;
+ and the traveler sees with regret, crowds of Irish going to work in ragged
+ frock-coats, short trowsers and old silk hats. In Prussia, many of the
+ peasantry, in the time of Frederick the Great, wore the discarded uniforms
+ of the soldiery.</p>
+
+ <p class="footnote"> <a name="footnote_208-6" id="footnote_208-6"></a>
+ <a href="#fnanchor_208-6">[208-6]</a>
+ <i>Schäffle</i>, N. Oek. <i>Hermann</i>, Staatsw. Untersuchungen, II,
+ Aufl., 100.</p>
+
+<p class="p2 center"><a name="S209"></a>SECTION CCIX.</p>
+
+<p class="center smaller">CONSUMPTION WHICH IS THE WORK OF NATURE.</p>
+
+<p>The least enjoyable of all consumption (<i>loss-consumption</i>) is that
+which is the work of nature; and nature is certainly most consuming in the
+tropics. During the rainy season, in the region of the upper Ganges,
+mushrooms shoot up in every corner of the houses; books on shelves swell to
+such an extent that three occupy the place previously occupied by four;
+those left on the table get covered over with a coat of moss one-eighth of
+an inch in thickness. The saltpetre that gathers on the walls has to be
+removed every week in baskets, to keep it from eating into the bricks.
+Numberless moths devour the clothing. Schomburgk found that, in Guiana,
+iron instruments which lay on the ground during the rainy season became
+entirely useless within a few days, that silver coins oxydized, etc.;
+evidently a great obstacle in the way of the employment of machinery. In
+summer, the soil of this same region, so rich in roots, is so parched by
+the heat, that subterranean fires sometimes cause the most frightful
+destruction.</p>
+
+<p>In Spanish America, there are so many termites and other destructive
+insects that paper more than sixty years old is very seldom to be found
+there.<a name="fnanchor_209-1" id="fnanchor_209-1"></a><a
+href="#footnote_209-1" class="fnanchor">[209-1]</a></p>
+
+<p>The warmer portions of the temperate zone are naturally <span
+class='pagenum'>[Pg 190]</span> most favorable to the preservation of stone
+monuments. Thus, for instance, in Persepolis, where there has been no
+intentional destruction, the stones lie so accurately superimposed the one
+on the other that the lines of junction can frequently be not even seen.
+The amphitheatre of Pola has lost in two thousand years only two lines from
+the angles of the stones.<a name= "fnanchor_209-2" id=
+"fnanchor_209-2"></a><a href= "#footnote_209-2" class=
+"fnanchor">[209-2]</a> The Elgin marble statues would certainly have lasted
+longer in Greece than they will in England. On the other hand, warm and dry
+climates have a very peculiar and exceedingly frightful species of
+nature-consumption in the locust plagues. The principal countries affected
+by such consumption are Asiatic and African Arabistan, the land of the
+Jordan and Euphrates, Asia Minor, parts of Northern India. On Sinai, locust
+plagues occur, on an average, every four or five years; but from 1811 to
+1816, for instance, they destroyed everything each year. Their course is in
+its effects like an advancing conflagration. It turns the green country,
+frequently in a single day, into a brown desert; and famine and pestilence
+follow in its path.<a name="fnanchor_209-3" id="fnanchor_209-3"></a><a
+href="#footnote_209-3" class="fnanchor">[209-3]</a></p>
+
+<p>The colder regions of the temperate zone are exposed to danger and
+damage from land-slides in their long series of mountains, and from
+avalanches, from quicksands in many of their plains, from floods and the
+total destruction of land along <span class='pagenum'>[Pg 191]</span> their
+coasts;<a name="fnanchor_209-4" id= "fnanchor_209-4"></a><a
+href="#footnote_209-4" class="fnanchor">[209-4]</a> but, on the other hand,
+they are, relatively speaking, freest from hurricanes, earthquakes and
+volcanoes, the ravages of which no human art or foresight is competent to
+cope with. From the point of view of civilization and of politics there is
+here a great advantage. See § 36. The former maritime power of Venice and
+of Holland is closely allied to the dangers with which the sea continually
+threatened them, and which was a continual spur to both. But, on the other
+hand, the danger from earthquakes which always impends over South America
+and Farther India, must produce consequences similar to those of anarchy or
+of despotism, because of the uncertainty with which they surround all
+relations. See § 39.<a name="fnanchor_209-5" id="fnanchor_209-5"></a><a
+href="#footnote_209-5" class="fnanchor">[209-5]</a></p>
+
+ <p class="footnote"> <a name="footnote_209-1" id="footnote_209-1"></a>
+ <a href="#fnanchor_209-1">[209-1]</a>
+ <i>Ritter</i>, Erdkunde VI, 180 ff; <i>Schomburgk</i> in the Ausland,
+ 1843, Nr. 274; <i>Humboldt</i>, Relation hist., I, 306; Neuspanein, IV,
+ 379; <i>Pöpping</i>, Reise, II, 197 ff., 237 ff. The ant, even in
+ Marcgrav's time, was called the <i>rey do Brazil</i>.</p>
+
+ <p class="footnote"> <a name="footnote_209-2" id="footnote_209-2"></a>
+ <a href="#fnanchor_209-2">[209-2]</a>
+ <i>Ritter</i>, Erdkunde VIII, 895; <i>Burger</i>, Reise in Oberitalien, I,
+ 7. The monuments of Nubia have suffered much less from the hand of time
+ than those of Upper Egypt, because the air of the plateau is drier. The
+ effects of climate have been most severely felt in Lower Egypt, where the
+ air is most moist. (<i>Ritter</i>, I, 336, 701.) In the case of wood, on
+ the other hand, dryness may be a great agent of destruction. Thus, in
+ Thibet, wooden pillars, balconies, etc., have to be protected with woolen
+ coverings to keep them from splitting. (<i>Turner</i>, Gesandtsreise,
+ German translation, 393 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_209-3" id="footnote_209-3"></a>
+ <a href="#fnanchor_209-3">[209-3]</a>
+ Compare <i>Ritter</i>, Erdkunde, VIII, 789-815, especially the beautiful
+ collection of passages from the Bible bearing on the locust plague, 812
+ ff. <i>Pliny</i>, H. N., XI, 85. <i>Volney</i>, Voyages en <i>Syrie</i>,
+ I, 305. For account of an invasion of locusts, which, in 1835, covered
+ half a square mile, four inches in thickness, see <i>v. Wrede</i>, R. in
+ Hadhrammaut, 202. It is estimated that, in England, the destruction caused
+ by rats, mice, insects, etc., amounts to ten shillings an acre per year;
+ i. e., to £10,000,000 per annum. (<i>Dingler</i>, Polyt. Journal, XXX,
+ 237.)</p>
+
+ <p class="footnote"> <a name="footnote_209-4" id="footnote_209-4"></a>
+ <a href="#fnanchor_209-4">[209-4]</a>
+ Origin of the gulf of Dollart in Friesland, 2½ square miles in area
+ between 1177 and 1287; and of Biesboch of 2 square miles in 1421. On the
+ repeated destruction of lands in Schleswig by inundations, see
+ <i>Thaarup</i>, Dänische Statistik, I, 180 seq. It is a remarkable fact
+ that in relation to the Mediterranean, <i>Strabo</i>, VII, 293, considers
+ all such accounts fables.</p>
+
+ <p class="footnote"> <a name="footnote_209-5" id="footnote_209-5"></a>
+ <a href="#fnanchor_209-5">[209-5]</a>
+ As to how the grandeur and irresistibleness, etc. of this
+ nature-consumption in the tropics leads men to superstition and the
+ indulgence of wild fancies, see <i>Buckle</i>, History of Civilization in
+ England, 1859, I, 102 ff. Since the conquest of Chili, sixteen
+ earthquakes, which have destroyed large cities totally or in part, have
+ been recorded.</p>
+
+<p class="p2 center"><a name="S210"></a>SECTION CCX.</p>
+
+<p class="center smaller">NECESSITY OF CONSIDERING WHAT IS REALLY
+CONSUMED.</p>
+
+<p>Whenever there is question of consumption, it is necessary to examine
+with rigid scrutiny, what it is that has been really consumed; that is,
+that has lost in utility. The person, for instance, who pays twenty dollars
+for a coat, has consumed that amount of capital only when the coat has been
+worn out.<a name="fnanchor_210-1" id="fnanchor_210-1"></a><a
+href="#footnote_210-1" class="fnanchor">[210-1]</a> What is called the
+consumption of one's income in advance is nothing but the consumption of a
+portion of capital which the <span class='pagenum'>[Pg 192]</span>
+consuming party intends to make good from his future income.<a
+name="fnanchor_210-2" id="fnanchor_210-2"></a><a href="#footnote_210-2"
+class="fnanchor">[210-2]</a> Fixed capital, too, can certainly be directly
+consumed; for instance, when the owner of a house treats the entire rent he
+receives from it as net income, makes no repairs, and no savings to put up
+a new building at some future time. As a rule, however, the owner of fixed
+capital must, in order to consume it, first exchange it against circulating
+capital. Thus the prodigality and dissipation, especially of courts of
+absolute princes, have found numerous defenders who have claimed that they
+are uninjurious, provided only the money spent in extravagance remained in
+the country.<a name="fnanchor_210-3" id="fnanchor_210-3"></a><a
+href="#footnote_210-3" class="fnanchor">[210-3]</a> The prodigality itself,
+that is, the unnecessary destruction of wealth is not, on that account, any
+the less disastrous.<a name="fnanchor_210-4" id="fnanchor_210-4"></a><a
+href="#footnote_210-4" class="fnanchor">[210-4]</a> If, for instance, there
+are fire-works to the amount of 10,000 dollars, manufactured exclusively by
+the workmen of the country, ordered for a gala day; the night before they
+are used for purposes of display, the national wealth embraces two separate
+amounts, aggregating 20,000 dollars; that is, 10,000 dollars in silver and
+10,000 in rockets, etc. The day after, the 10,000 in silver are indeed
+still in existence, but of the 10,000 in rockets, etc., there is nothing
+left. If the order had been made from a foreign country the reverse would
+have been the case, the silver stores <span class='pagenum'>[Pg 193]</span>
+of the people would have been diminished, but their supply of powder would
+remain intact.</p>
+
+<p>In a similar way, there is occasion given for the greatest
+misunderstanding when people so frequently speak of producers and consumers
+as if they were two different classes of people. Every man is a consumer of
+many kinds of goods; but, at the same time, he is a producer, unless he be
+a child, an invalid, a robber, a pick-pocket, etc.<a name="fnanchor_210-5"
+id="fnanchor_210-5"></a><a href="#footnote_210-5" class=
+"fnanchor">[210-5]</a> At the same time, Bastiat is right in saying that in
+case of doubt when the interests of production and of consumption come in
+conflict, the state, as the representative of the aggregate interest,
+should range itself on the side of the latter. If we carry things on both
+sides to their extremest consequences, the self-seeking desire of consumers
+would lead to the utmost cheapness, that is, to universal superfluity, and
+the self-seeking wish of producers to the utmost dearness, that is, to
+universal want.<a name= "fnanchor_210-6" id= "fnanchor_210-6"></a><a
+href="#footnote_210-6" class="fnanchor">[210-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_210-1" id="footnote_210-1"></a>
+ <a href="#fnanchor_210-1">[210-1]</a>
+ Compare <i>Mirabeau</i>, Philosophie rurale, ch. 1; <i>Prittwitz</i>;
+ Kunst reich zu werden, 474.</p>
+
+ <p class="footnote"> <a name="footnote_210-2" id="footnote_210-2"></a>
+ <a href="#fnanchor_210-2">[210-2]</a>
+ A very important principle for the understanding of the real effects of
+ the spending of a state loan!</p>
+
+ <p class="footnote"> <a name="footnote_210-3" id="footnote_210-3"></a>
+ <a href="#fnanchor_210-3">[210-3]</a>
+ In this way <i>Voltaire</i>, Siècle de Louis XIV., ch. 30, excuses for
+ instance the extravagant (?) buildings at Versailles; and in a very
+ similar way Catharine II. expressed herself in speaking to the Prince de
+ Ligne: Mémoires et Mélanges par le Prince de Ligne, 1827, II, 358. <i>v.
+ Schröder</i> even thinks that the Prince might consume as much and even
+ more than "the entire capital" of the country amounted to; only, he would
+ have him "let it get quickly among the people again." He is also in favor
+ of the utmost splendor in dress, provided the public see to it that
+ nothing was worn in the country which was not made in the country.
+ (Fürstl. Schatz- u. Rentkammer, 47, 172.) Similarly even <i>Botero</i>,
+ Della Ragion di Stato VII, 85; VIII, 191; and recently <i>v.
+ Struensee</i>, Abhandlungen I, 190. The principle of Polycrates in
+ <i>Herodotus</i> is nearly to the same effect. Compare, per contra,
+ <i>Ferguson</i>, Hist. of Civil Society, V, 5.</p>
+
+ <p class="footnote"> <a name="footnote_210-4" id="footnote_210-4"></a>
+ <a href="#fnanchor_210-4">[210-4]</a>
+ With the exception of the profit made by the manufacturers.</p>
+
+ <p class="footnote"> <a name="footnote_210-5" id="footnote_210-5"></a>
+ <a href="#fnanchor_210-5">[210-5]</a>
+ Strikingly ignored by <i>Sismondi</i>, N. P., IV, ch. II.</p>
+
+ <p class="footnote"> <a name="footnote_210-6" id="footnote_210-6"></a>
+ <a href="#fnanchor_210-6">[210-6]</a>
+ <i>Bastiat</i>, Sophismes économiques, 1847, ch. IV. Everything which, in
+ the long run, either promotes or injures production, "steps over the
+ producer and turns in the end to the gain or loss of the consumer." Only
+ for this principle, inequality and dissensions among men would keep
+ growing perpetually. All that the systems of Saint Simonism and communism
+ contain that is relatively true is thus realized.</p>
+
+<p class="p2 center"><a name="S211"></a>SECTION CCXI.</p>
+
+<p class="center smaller">NATURE AND KINDS OF CONSUMPTION.&mdash;PRODUCTIVE
+CONSUMPTION.</p>
+
+<p>There is no production possible without consumption. The embodiment of a
+special utility into any substance is a limitation of its general utility.
+Thus, for instance, when corn is baked into bread, it can no longer be used
+for the manufacture of brandy or of starch.<a name="fnanchor_211-1" id=
+"fnanchor_211-1"></a><a href= "#footnote_211-1" class=
+"fnanchor">[211-1]</a></p>
+
+<p><span class='pagenum'>[Pg 194]</span>When, therefore, consumption is a
+condition (outlay) to production it is called productive (reproductive).<a
+name="fnanchor_211-2" id="fnanchor_211-2"></a><a href="#footnote_211-2"
+class="fnanchor">[211-2]</a> Here, indeed, the form of the consumed goods
+is destroyed, but the value of the goods lives on in the new product.</p>
+
+<p>There are different degrees of productiveness in consumption also. Thus,
+to a scholar, his outlay for books in his own branch is immediately
+productive; but nevertheless, books in departments of literature very
+remote from his own, pleasure trips, etc. may serve as nutrition and as a
+stimulus to his mind. According to § 52, we are compelled to consider all
+consumption productive which constitutes a necessary means towards the
+satisfaction of a real economic want. We may, indeed, distinguish between
+productive consumption in aid of material goods, of personal goods and
+useful relations; but in estimating the productiveness of these different
+sorts of consumption we are concerned not so much with the nature of the
+consumption as the results in relation to the nation's wants. The powder
+that explodes when a powder magazine burns is consumed unproductively; but
+the powder shot away in war may be productively consumed just as that used
+to explode a mine may be unproductively consumed; for instance, when the
+war is a just and victorious one and the mining enterprise has failed.<a
+name= "fnanchor_211-3" id= "fnanchor_211-3"></a><a href="#footnote_211-3"
+class="fnanchor">[211-3]</a></p>
+
+<p>The maintenance or support of those workmen whom they themselves
+acknowledge to be productive is presumably accounted productive consumption
+by all political economists. Why not, therefore, the cost of supporting and
+educating our children, who, it is to be hoped, will grow up later to be
+productive workmen. Man's labor-power is, doubtless, one of the greatest of
+all economic goods. But without the means of subsistence, it would die out
+in a few days. Hence we may, and even without an atomistic enumeration of
+the individual services and products of labor, consider the continued
+duration <span class='pagenum'>[Pg 195]</span> of that labor-power itself
+as the continued duration of the value of the consumed means of
+subsistence.<a name="fnanchor_211-4" id="fnanchor_211-4"></a><a href=
+"#footnote_211-4" class="fnanchor">[211-4]</a></p>
+
+ <p class="footnote"> <a name="footnote_211-1" id="footnote_211-1"></a>
+ <a href="#fnanchor_211-1">[211-1]</a>
+ Even when air-dried bricks are made from water and clay which cost
+ nothing; when purely occupatory work is done, and purely intellectual
+ labor performed, some consumption of the means of subsistence by the
+ workmen is always necessary.</p>
+
+ <p class="footnote"> <a name="footnote_211-2" id="footnote_211-2"></a>
+ <a href="#fnanchor_211-2">[211-2]</a>
+ Χρηματιστικαὶ<a name= "fnanchor_TN37" id= "fnanchor_TN37"></a><a href=
+ "#footnote_TN37" class= "fnanchor">[TN 37]</a> in contradistinction to
+ ἀναλωτικαὶ,<a name= "fnanchor_TN38" id= "fnanchor_TN38"></a><a href=
+ "#footnote_TN38" class= "fnanchor">[TN 38]</a> according to <i>Plato</i>,
+ De Rep., VIII, 559. Temporary consumption. (<i>Umpfenbach.</i>)</p>
+
+ <p class="footnote"> <a name="footnote_211-3" id="footnote_211-3"></a>
+ <a href="#fnanchor_211-3">[211-3]</a>
+ <i>Storch</i>, Handbuch, II, 450.</p>
+
+ <p class="footnote"> <a name="footnote_211-4" id="footnote_211-4"></a>
+ <a href="#fnanchor_211-4">[211-4]</a>
+ Against the difference formerly usually assumed between productive and
+ unproductive consumption, see <i>Jacob</i>, Grundsätze der Nat. Oek., II,
+ 530. It is because of a too narrow view that <i>Hermann</i> (II, Aufl.,
+ 311), instead of reproductive consumption, speaks of technic
+ consumption.</p>
+
+<p class="p2 center"><a name="S212"></a>SECTION CCXII.</p>
+
+<p class="center smaller">UNPRODUCTIVE CONSUMPTION.</p>
+
+<p>Moreover, unproductive consumption embraces not only every economic
+loss, every outlay for injurious purposes,<a name="fnanchor_212-1"
+id= "fnanchor_212-1"></a><a href="#footnote_212-1" class=
+"fnanchor">[212-1]</a> but also every superfluous outlay for useful
+purposes.<a name= "fnanchor_212-2" id= "fnanchor_212-2"></a><a href=
+"#footnote_212-2" class="fnanchor">[212-2]</a> Yet, not to err in our
+classification here, it is necessary to possess the impartiality and
+many-sidedness of the historian, which enable one to put himself in the
+place of others and feel after them as they felt. The man, for instance,
+who, in cities like Regensburg and especially Rome, sees numberless
+churches often, so to speak, elbowing one another, cannot fail to recognize
+the difference between the buildings of to-day for business, political,
+educational and recreative purposes,<a name= "fnanchor_TN39" id=
+"fnanchor_TN39"></a><a href= "#footnote_TN39" class= "fnanchor">[TN 39]</a>
+and the medieval, for the satisfaction of spiritual wants. The latter also
+may, in their own sphere, and in their own time, have, as a rule, operated
+productively, as the former operate, often enough, by way of exception
+unproductively; as in the case of railway and canal speculations which have
+ended in failure. It would be difficult to decide between the relative
+value of the two kinds of wants, because the parties to the controversy do
+not, for the most part, share the want (<i>Bedürfniss</i>) of their
+respective opponents, frequently do not even <span class= 'pagenum'>[Pg
+196]</span> understand it, and therefore despise it. Thus, there are
+semi-barbarous nations, who can entertain that respect for the laws which
+is necessary even from an economic point of view only to the extent that
+they see the person whose duty it is to cause them to be observed seated on
+a throne and surrounded by impressive splendor. Hence, such splendor here
+could not be considered merely unproductive consumption.<a
+name="fnanchor_212-3" id="fnanchor_212-3"></a><a href= "#footnote_212-3"
+class="fnanchor">[212-3]</a></p>
+
+<p>We must, moreover, remark in this place as we did above, § 54, that it
+is easiest to pass the boundary line between productive and unproductive
+consumption in personal services. In 1830, the expenses of the state, in
+Spain, amounted to 897,000,000 of reals per annum; the outlay of municipal
+corporations, to 410,000,000, and that for external purposes of religion,
+1,680,000,000. (<i>Borrego.</i>) This is certainly no salutary proportion;
+but it is scarcely evidence of a worse economic condition than the fact
+that in Prussia it would require a basin one Prussian mile in length,
+thirty-three and eight-tenths feet broad, and ten feet deep to hold all the
+brandy drunk in the country (<i>Dieterici</i>); or this other, that the
+British people spend yearly £68,000,000 sterling for taxes and £100,000,000
+yearly for spirituous liquors.<a name= "fnanchor_212-4" id=
+"fnanchor_212-4"></a><a href= "#footnote_212-4" class="fnanchor">[212-4]</a>
+Berkeley rightly says that the course practiced in Ireland, with its
+famishing proletarian population, of exporting the means of subsistence and
+exchanging them against delicate wines, etc., is as if a mother should sell
+her children's bread to buy dainties and finery for herself with the
+proceeds.<a name="fnanchor_212-5" id= "fnanchor_212-5"></a><a href=
+"#footnote_212-5" class= "fnanchor">[212-5]</a> <a name="fnanchor_212-6"
+id= "fnanchor_212-6"></a><a href="#footnote_212-6" class=
+"fnanchor">[212-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_212-1" id="footnote_212-1"></a>
+ <a href="#fnanchor_212-1">[212-1]</a>
+ Thus, for instance, food which spoils unused, and food which is stolen and
+ which puts a thief in a condition to preserve his strength to steal still
+ more.</p>
+
+ <p class="footnote"> <a name="footnote_212-2" id="footnote_212-2"></a>
+ <a href="#fnanchor_212-2">[212-2]</a>
+ So far <i>Senior</i>, Outlines, 66, is right: the richer a nation or a man
+ becomes, the greater does the national or personal productive consumption
+ become.</p>
+
+ <p class="footnote"> <a name="footnote_212-3" id="footnote_212-3"></a>
+ <a href="#fnanchor_212-3">[212-3]</a>
+ Such gigantic constructions as the palaces, pyramids, etc. of Egypt,
+ Mexico or Peru are a certain sign of the oppression of the people by
+ rulers, priests or nobles. One of the Egyptian pyramids is said to have
+ occupied 360,000 men for twenty years. (<i>Diodor.</i>, I, 63;
+ <i>Herodot.</i>, II, 175; <i>Prescott</i>, History of Mexico, I, 153,
+ History of Peru, I, 18.)</p>
+
+ <p class="footnote"> <a name="footnote_212-4" id="footnote_212-4"></a>
+ <a href="#fnanchor_212-4">[212-4]</a>
+ Edinburg Rev., Apr., 1873, 399.</p>
+
+ <p class="footnote"> <a name="footnote_212-5" id="footnote_212-5"></a>
+ <a href="#fnanchor_212-5">[212-5]</a>
+ <i>Berkeley</i>, Querist, 168, 175, says that the national wants should be
+ the guiding rule of commerce, and that besides, the most pressing wants of
+ the majority should be first considered.</p>
+
+ <p class="footnote"> <a name="footnote_212-6" id="footnote_212-6"></a>
+ <a href="#fnanchor_212-6">[212-6]</a>
+ <i>Ricardo</i>, Principles, p. 475, was of opinion that an outlay of the
+ national or of private income in the payment of personal services
+ increased the demand for labor and the wages of labor in a higher degree
+ than an equal outlay for material things. The error at the foundation of
+ this is well refuted by <i>Senior</i>, Outlines, 160 ff.</p>
+
+ <p class="footnote">The first to zealously advocate and treat the theory
+ of productive consumption was <i>J. B. Say</i>, Traité, III, ch. 2, seq.;
+ Cours pratique, II, 265. But the germs of the doctrine are to be found in
+ <i>Dutot</i>, Réflexions politiques sur le Commerce et les Finances, 1738,
+ 974, <i>éd</i>. Daire. His distinctions are in part drawn with great
+ accuracy. Thus he says that, among others, a manufacturer of cloth,
+ productively consumes the results of his workmen, but that the workmen
+ themselves who exchange these results for bread, consume the latter
+ unproductively. <i>Say</i> is guilty of the inconsistency of claiming that
+ only that consumption is productive which contributes directly to the
+ creation of material exchangeable goods, spite of the fact that he gave
+ the productiveness of labor a much wider scope. <i>Rau</i>, Lehrbuch, I, §
+ 102 ff., 323 seq., is more consistent in so far as he applies the same
+ limitation in both cases. (Compare also § 333, 336.) <i>Hermann</i>,
+ Staatsw. Untersuchungen, 170 seq., 231 ff., would prefer to see the idea
+ of productive consumption banished from the science, for the reason that
+ if the value of the thing alleged to be consumed continues, there can be
+ no such thing as its consumption. But, I would rejoin: in a good national
+ economy, there would be, according to this, scarcely any consumption
+ whatever, because the aggregate value of that which I have called above
+ productive consumption is unquestionably preserved, and continues in the
+ aggregate value of the national products.</p>
+
+ <p class="footnote">Productive consumption is ultimately a stage of
+ production, just as production itself is ultimately a means to an end,
+ consumption, and therefore a preparation for the latter. Both ideas may be
+ rigorously kept apart from each other, just as the expenses and receipts
+ of a private business man, who makes a great portion of his outlay simply
+ with the intention of reaping receipts therefrom, may be. Every one
+ desires his production to be as large as possible, and his productive
+ consumption, so far it does not fail of its object, as small as possible.
+ <i>Riedel</i> rightly says that the theory of reproductive consumption
+ serves Political Economy as the bridge which closes the circle formed by
+ the action of production, distribution and consumption. (Nat. Oek. III,
+ 49.) One of the chief fore-runners of the view we advocate was
+ <i>McCulloch</i>, Principles, IV, 3 ff. <i>Gr. Soden</i>, Nat. Oek.,
+ distinguishes economic consumption, un-economic and anti-economic
+ consumption. (Nat. Oek., I, 147.)</p>
+
+<p class="p2 center"><a name="S213"></a>SECTION CCXIII.<span
+class='pagenum'>[Pg 197]</span></p>
+
+<p class="center smaller">EQUILIBRIUM BETWEEN PRODUCTION AND
+CONSUMPTION.</p>
+
+<p>In all cases economic production is a means to some kind of consumption
+as its end.<a name= "fnanchor_213-1" id= "fnanchor_213-1"></a><a href=
+"#footnote_213-1" class="fnanchor">[213-1]</a> The sharpest spur to
+productive <span class='pagenum'>[Pg 198]</span> activity is the feeling of
+want.<a name= "fnanchor_213-2" id= "fnanchor_213-2"></a><a href=
+"#footnote_213-2" class= "fnanchor">[213-2]</a> "Want teaches art, want
+teaches prayer, blessed want!" Well too has it been said: "Necessity is the
+mother of invention!" Leaving mere animals out of consideration,<a name=
+"fnanchor_213-3" id= "fnanchor_213-3"></a><a href="#footnote_213-3"
+class="fnanchor">[213-3]</a> those men who experience very few wants, with
+the exception of some rare and highly intellectual natures, prefer rest to
+labor. Therefore, when European merchants desire to engage in trade with a
+savage nation they have uniformly to begin by sending them their nails,
+axes, looking-glasses, brandy, etc., as gifts. Not until the savage has
+experienced a new enjoyment does the want of continuing it make itself
+felt; or is he prepared to produce for purposes of commerce.<a name=
+"fnanchor_213-4" id= "fnanchor_213-4"></a><a href= "#footnote_213-4" class=
+"fnanchor">[213-4]</a> In a state of normal development, the complete and
+continuing satisfaction of the coarser wants should constitute the
+foundation for the higher.<a name= "fnanchor_213-5" id=
+"fnanchor_213-5"></a><a href="#footnote_213-5" class=
+"fnanchor">[213-5]</a></p>
+
+ <p class="footnote"> <a name="footnote_213-1" id="footnote_213-1"></a>
+ <a href="#fnanchor_213-1">[213-1]</a>
+ We should not, indeed, say, on this account, with <i>Adam Smith</i>,<a
+ name= "fnanchor_TN40" id= "fnanchor_TN40"></a><a href= "#footnote_TN40"
+ class= "fnanchor">[TN 40]</a> IV, ch. 8, that "consumption is the sole
+ end and purpose of all production," for labor and saving, besides their
+ economic object have a higher one, imperishable and personal. Compare
+ <i>Knies</i>, Polit. Oek. 129, and <i>supra</i>, § 30.</p>
+
+ <p class="footnote"> <a name="footnote_213-2" id="footnote_213-2"></a>
+ <a href="#fnanchor_213-2">[213-2]</a>
+ According to <i>Sir F. M. Eden</i>, State of the Poor, I, 254, it is one
+ of the most unambiguous symptoms of advanced civilization when families
+ eat regularly at the same table; so also sleeping in real beds. "Bed and
+ board!" It is said that the regularity of meal times was introduced among
+ the Greeks by Palamedes. <i>Athen.</i> I, 11, after <i>Æschylus</i>.</p>
+
+ <p class="footnote"> <a name="footnote_213-3" id="footnote_213-3"></a>
+ <a href="#fnanchor_213-3">[213-3]</a>
+ Hibernating animals have supplies and dwellings, that is something
+ analogous<a name= "fnanchor_TN41" id= "fnanchor_TN41"></a><a href=
+ "#footnote_TN41" class= "fnanchor">[TN 41]</a> to capital.</p>
+
+ <p class="footnote"> <a name="footnote_213-4" id="footnote_213-4"></a>
+ <a href="#fnanchor_213-4">[213-4]</a>
+ This advance is generally observed to be introduced by the <i>jus
+ fortioris</i>. <i>Steuart</i>, Principles I, ch. 7. (Compare §§ 45-6-8.)
+ In this way, the earliest oriental despotisms have unwittingly been of
+ great service to mankind. What the sultan here accomplished with his few
+ favorites was done in the lower stages of civilization of the west by the
+ aristocracy of great vassals, in a manner more worthy of human beings, and
+ in a much more stable form. (<i>J. S. Mill</i>, Principles I, 14 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_213-5" id="footnote_213-5"></a>
+ <a href="#fnanchor_213-5">[213-5]</a>
+ <i>Banfield</i>, Organization of Industry, 1848, 11.</p>
+
+<p class="p2 center"><a name="S214"></a>SECTION CCXIV.</p>
+
+<p class="center smaller">CAUSES OF AN INCREASE OF PRODUCTION.</p>
+
+<p>Only when wants increase does production increase also.<a name=
+"fnanchor_214-1" id= "fnanchor_214-1"></a><a href= "#footnote_214-1"
+class="fnanchor">[214-1]</a> <span class='pagenum'>[Pg 199]</span> The old
+maxim: <i>Si quem volueris esse divitem, non est quod augeas divitias, sed
+minuas cupiditates (Seneca)</i>, would, if consistently carried out, have
+thwarted the advance of civilization and frustrated the improvement of
+man's condition. On the other hand, most political economists, without more
+ado, assume that individuals, and still more nations, are wont to extend
+the aggregate of their enjoyments just as far as there is a possibility of
+satisfying their wants. But they forget here how great a part is played in
+the world, as men are constituted, by the principle of inertia.<a name=
+"fnanchor_214-2" id= "fnanchor_214-2"></a><a href="#footnote_214-2" class=
+"fnanchor">[214-2]</a> At the first blush, what seems more natural than
+that the less labor a people need employ to obtain the most indispensable
+means of subsistence, the more time and taste would remain to them to
+satisfy their more refined wants. According to this, we should expect to
+discover a more refined civilization, especially, in intellectual matters,
+in the earliest periods, when population is small, when land exists in
+excess and is not yet exhausted. But, in reality, precisely the reverse is
+the case. In the earliest stages of civilization<a name= "fnanchor_TN42"
+id= "fnanchor_TN42"></a><a href= "#footnote_TN42" class= "fnanchor">[TN
+42]</a> accessible to our observation, we find materialism prevailing in
+its coarsest form, and life absorbed entirely by the lowest physical wants.
+(Tropical lands.) Where bread grows on the trees, and one needs only to
+reach out his hand and pluck it; where all one wants to cover his nakedness
+is a few palm leaves, ordinary souls find no incentive to an ant-like
+activity, or to a union among themselves for economic purposes.<a name=
+"fnanchor_214-3" id= "fnanchor_214-3"></a><a href= "#footnote_214-3" class=
+"fnanchor">[214-3]</a> <span class= 'pagenum'>[Pg 200]</span> When a
+Mexican countryman earns enough to keep himself and his family from
+absolute want by two days' labor in a week, he idles away the other five.
+It never occurs to him that he might devote his leisure time to putting his
+hut or his household furniture, etc., in better shape. The necessity of
+foresight even is almost unknown; and in the most luxuriantly fertile
+country in the world, a bad harvest immediately leads to the most frightful
+famine. Humboldt was assured that there was no hope of making the people
+more industrious except by the destruction of the banana plantations.<a
+name= "fnanchor_214-4" id= "fnanchor_214-4"></a><a href="#footnote_214-4"
+class= "fnanchor">[214-4]</a> But, indeed, there would be little gained by
+such compulsory industry. To work for any other end than satiation, it is
+necessary that man should feel wants beyond the want created by mere
+hunger.<a name= "fnanchor_214-5" id= "fnanchor_214-5"></a><a href=
+"#footnote_214-5" class= "fnanchor">[214-5]</a> There are so many
+conditions precedent (and mutually limiting one another) to a general
+advance in civilization, that such an advance can, as a rule, take place
+only very gradually. Let us suppose, for instance, a single Indian in
+Mexico, perfectly willing to work six days in the week, and in this way to
+cultivate a piece of land three times as great as his fellow Indians. Where
+would he get the land? He would, for a time find no purchasers for his
+surplus, and <span class='pagenum'>[Pg 201]</span> therefore not be in a
+condition to pay the landlord as much as the latter hitherto received from
+the pasturage alone. Not until cities are built and offer the rural
+population the products of industry in exchange for theirs, can they be
+incited to, or become capable of effecting a better cultivation of the
+land. This incentive and this capacity, are inseparably connected with each
+other. Where the agricultural population produce no real surplus, but after
+the fashion of medieval times, produce everything they want themselves, and
+consume all their own products with the exception of the part paid to the
+state as a tax, there can scarcely be an industrial class, a commercial
+class, or a class devoted to science, art, etc. And, conversely, it is only
+the higher civilization which finds expression in the development of these
+classes, that, by a more skillful guidance of the national labor, can call
+forth its productiveness to an extent sufficient to yield a considerable
+surplus of agricultural commodities over and above the most immediate wants
+of the cultivators of the soil themselves. Hence, we find that precisely in
+those countries which are most advanced in the economic sense, there is
+relatively the smallest number of men engaged in agriculture, and
+relatively the largest number in production of a finer kind.<a name=
+"fnanchor_214-6" id= "fnanchor_214-6"></a><a href="#footnote_214-6"
+class="fnanchor">[214-6]</a> It is here as in private housekeeping: the
+poorer a man is, the greater is the portion of his income which he is wont
+to lay out for indispensable necessities.<a name="fnanchor_214-7" id=
+"fnanchor_214-7"></a><a href= "#footnote_214-7" class=
+"fnanchor">[214-7]</a> <a name="fnanchor_214-8" id= "fnanchor_214-8"></a><a
+href= "#footnote_214-8" class= "fnanchor">[214-8]</a></p>
+
+ <p class="footnote"> <a name="footnote_214-1" id="footnote_214-1"></a>
+ <a href="#fnanchor_214-1">[214-1]</a>
+ There is obviously here supposed besides the want thus increased, a
+ capacity for development. Thus, for instance, the inhabitants of New
+ Zealand brought with them, in what concerns clothing, dwellings, etc., the
+ customs of a tropical into a colder country, and did not understand how to
+ oppose the rigor of the new climate, except by building immoderately large
+ fires, until they became acquainted with European teachers. (Edinb.
+ Review, April, 1850, 466.)</p>
+
+ <p class="footnote"> <a name="footnote_214-2" id="footnote_214-2"></a>
+ <a href="#fnanchor_214-2">[214-2]</a>
+ Compare <i>R. S. Zachariä</i>, Vierzig Bücher vom Staate, VII, 37. Men in
+ the lower stages of civilization cherish a greater contempt for those more
+ advanced than they are themselves visited with by the latter. Thus it was
+ customary for the Siberian hunting races to utter a malediction: May your
+ enemy live like a Tartar, and have the folly to engage in the breeding of
+ cattle. (<i>Abulghazi Bahadur</i>, Histoire généalogique des Tartares.)
+ Nomadic races look upon the inhabitants of cities as for the most part
+ prisoners.</p>
+
+ <p class="footnote"> <a name="footnote_214-3" id="footnote_214-3"></a>
+ <a href="#fnanchor_214-3">[214-3]</a>
+ The "happy, contented negroes," as Lord John Russel called them, work in
+ Jamaica, on an average, only one hour a day since their emancipation.
+ (Colonial Magazine, Nov. 1849, 458.) Egypt, India, etc., from time
+ immemorial, the classic lands of monkish laziness. Compare <i>Hume</i>,
+ Discourses, No. 1, on Commerce. On the other hand, the person who has six
+ months before him for which he must labor and lay up a store, if he would
+ not famish or freeze, must necessarily be active and frugal; and there are
+ other virtues which go along with these. (<i>List</i>, System der polit.
+ Oek., I, 304.) According to <i>Humboldt</i>, the change of seasons compels
+ man to get accustomed to different kinds of food, and thus fits him to
+ migrate. The inhabitants of tropical countries are, on the other hand,
+ like caterpillars, which cannot emigrate nor be made to emigrate, on
+ account of the uniform nature of their food.</p>
+
+ <p class="footnote"> <a name="footnote_214-4" id="footnote_214-4"></a>
+ <a href="#fnanchor_214-4">[214-4]</a>
+ <i>Humboldt</i>, N. Espagne, IV, ch. 9, II, ch. 5. Similarly among the
+ coarser Malayan tribes, the facility with which fish is caught and the
+ cheapness of sago are the principal causes of their inertia and of their
+ unprogressive uncivilization. (<i>Crawfurd.</i>)</p>
+
+ <p class="footnote"> <a name="footnote_214-5" id="footnote_214-5"></a>
+ <a href="#fnanchor_214-5">[214-5]</a>
+ <i>Le travail de la faim est toujours borné comme elle. (Raynal.)</i></p>
+
+ <p class="footnote"> <a name="footnote_214-6" id="footnote_214-6"></a>
+ <a href="#fnanchor_214-6">[214-6]</a>
+ Compare <i>Adam Smith</i>, I, ch. 11, 2; <i>supra</i>, § 54. In Russia,
+ nearly 80 per cent. of the population live immediately from agriculture;
+ in Great Britain, in 1835, only 35; in 1821, only 33; in 1831, only 31½;
+ in 1841, only 26 per cent. (<i>Porter.</i>) According to <i>Marshall</i>,
+ there were, in 1831, in British Europe, 1,116,000 persons who lived from
+ their rents, etc. In Ireland, there were, in 1831, over 65 per cent. of
+ the population engaged in agriculture (<i>Porter</i>); in 1841, even 66
+ per cent.</p>
+
+ <p class="footnote"> <a name="footnote_214-7" id="footnote_214-7"></a>
+ <a href="#fnanchor_214-7">[214-7]</a>
+ In Paris, in 1834, the average income per capita was estimated to be
+ 1,029.9 francs, of which 46 francs were paid out for service; 55.7 for
+ education; 11.5 for physicians' services, etc.; 7 on theatrical shows; 36
+ for washing; 13.6 for public purposes. (<i>Dingler</i>, Polyt. Journal,
+ LIII, 464.) According to <i>Ducpétiaux</i>, Budgets économiques des
+ Classes ouvrières en Belgique, 1855, and <i>Engel</i>, Sächs. Statist.
+ Ztschr., 1857, 170, the proportional percentage of family expenses for the
+ following articles of consumption is:</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Family expenses">
+
+<tr><td colspan="5"><hr class="fn" /></td></tr>
+
+<tr><td></td><td class="center" colspan="4">EXPENSES OF</td></tr>
+
+<tr><td></td><td colspan="4"><hr class="fn" /></td></tr>
+
+<tr><td class="center"><i>Consumption&nbsp;Purpose.</i></td>
+<td class="center" colspan="2"><i>a laborer's family in<br /> comfortable
+circumstances.</i></td>
+<td class="center"><i>family of the<br />middle class.</i></td>
+<td class="center"><i>a well-to-do<br />family.</i></td></tr>
+
+<tr><td></td><td colspan="2"><hr class="fn" /></td><td colspan="2"><hr
+class="fn" /></td></tr>
+
+<tr><td></td>
+<td class="center"><i>In Belgium.<br />per cent.</i></td>
+<td class="center"><i>In Saxony.<br />per cent.</i></td>
+<td class="center"><i>In Saxony.<br />per cent.</i></td>
+<td class="center"><i>In Saxony.<br />per cent.</i></td></tr>
+
+<tr><td></td><td colspan="2"><hr class="fn" /></td><td colspan="2">
+<hr class="fn" /></td></tr>
+
+<tr><td class="left">Food,</td><td class="left">61 &#9131;</td>
+<td class="left">62 &#9131;</td>
+<td class="left">55 &#9131;</td>
+<td class="left">50 &#9131;</td></tr>
+
+<tr><td class="left">Clothing,</td><td class="left">15 &#9130;</td>
+<td class="left">16 &#9130;</td>
+<td class="left">18 &#9130;</td>
+<td class="left">18 &#9130;</td></tr>
+
+<tr><td class="left">Shelter,</td><td class="left">10 &#9132; 95</td>
+<td class="left">12 &#9132; 95</td>
+<td class="left">12 &#9132; 90</td>
+<td class="left">12 &#9132; 85</td></tr>
+
+<tr><td class="left">Heating and lighting,</td><td class="left"><span
+class="hidenum">0</span>5
+&#9130;</td>
+<td class="left"><span class="hidenum">0</span>5 &#9133;</td>
+<td class="left"><span class="hidenum">0</span>5 &#9133;</td>
+<td class="left"><span class="hidenum">0</span>5 &#9133;</td></tr>
+
+<tr><td class="left">Utensils and tools,</td><td class="left"><span
+class="hidenum">0</span>4
+&#9133;</td></tr>
+
+<tr><td class="left2">Education,&nbsp;instruction,</td>
+<td class="left2"><span class="hidenum">0</span>2 &#9131;</td>
+<td class="left2"><span class="hidenum">0</span>2 &#9131;</td>
+<td class="left2">3.5 &#9131;</td>
+<td class="left2">5.5 &#9131;</td></tr>
+
+<tr><td class="left">Public security,</td><td class="left"><span
+class="hidenum">0</span>1 &#9130;</td>
+<td class="left"><span class="hidenum">0</span>1 &#9130;</td>
+<td class="left">2<span class="hidenum">.5</span> &#9130;</td>
+<td class="left">3<span class="hidenum">.5</span> &#9130;</td></tr>
+
+<tr><td class="left">Sanitary purposes</td><td class="left"><span
+class="hidenum">0</span>1 &#9132; 5</td>
+<td class="left"><span class="hidenum">0</span>1 &#9132; 5</td>
+<td class="left">2<span class="hidenum">.0</span> &#9132; 10</td>
+<td class="left">3<span class="hidenum">.0</span> &#9132; 15</td></tr>
+
+<tr><td class="left">Personal services,</td><td class="left"><span
+class="hidenum">0</span>1 &#9133;</td>
+<td class="left"><span class="hidenum">0</span>1 &#9133;</td>
+<td class="left">2.5 &#9133;</td>
+<td class="left">3.5 &#9133;</td></tr>
+
+<tr><td colspan="5"><hr class="fn" /></td></tr>
+
+</table></div>
+
+ <p class="footnote">Hence <i>Engel</i> thinks that when the articles of
+ food, clothing, shelter, heating and lighting have become dearer by 50 per
+ cent., and other wants have not, and it is desired to proportionately
+ increase the salaries of officials, salaries of 300, 600 and 1,000 thalers
+ should be raised to 427.5, 800 and 1,275 thalers respectively. (Preuss.
+ Statist. Zeitschr., 1875.) <i>E. Herrmann</i>, Pricipien der Wirthsch.,
+ 106, estimates that in all Europe, 45.6 of all consumption is for food,
+ 13.2 for clothing, 5.7 for shelter, 4.6 for furnishing, 5.3 for heating
+ and lighting, 2.6 for tools and utensils, 13.3 for public security, 6.6
+ for purposes of recreation. Compare <i>Leplay</i>, Les Ouvriers Européens,
+ 1855, and <i>v. Prittwitz</i>, Kunst reich zu werden, 487 ff. The expenses
+ for shelter, service and sociability are specially apt to increase with an
+ increase of income.</p>
+
+ <p class="footnote"> <a name="footnote_214-8" id="footnote_214-8"></a>
+ <a href="#fnanchor_214-8">[214-8]</a>
+ The necessity of an equilibrium between production and consumption was
+ pretty clear to many of the older political economists. Thus, for
+ instance, <i>Petty</i> calls the coarse absence of the feeling of higher
+ wants among the Irish the chief cause of their idleness and poverty.
+ Similarly <i>Temple</i>, Observations on the N. Provinces, ch. 6, in which
+ Ireland and Holland are compared in this relation. <i>North</i>,
+ Discourses upon Trade, 14 seq.; Potscr. <i>Roscher</i>, Zur Geschichte der
+ english. Volswirthschaftslehre, 83, 91, 127 ff. <i>Becher</i>, polit.
+ Discurs., 1668, 17 ff., was of opinion that the principal cause keeping
+ the three great estates together, the very soul of their connection, was
+ consumption. Hence the peasant lived from the tradesman, and the tradesman
+ from the merchant. (<i>Boisguillebert</i>, Détail de la France, I, 4, II,
+ 9, 21.) According to <i>Berkeley</i>, Querist, No. 20, 107, the awakening
+ of wants is the most probable way to lead a people to industry. And so
+ <i>Hume</i>, loc. cit., <i>Forbonnais</i>, Eléments du Commerce, I, 364.
+ The Physiocrates were in favor of active consumption. Thus <i>Quesnay</i>,
+ Maximes générales, 21 seq.; <i>Letrosne</i>, De l'Interêt social, I, 12.
+ <i>La reproduction et la consommation sont réciproquement</i><a name=
+ "fnanchor_TN43" id= "fnanchor_TN43"></a><a href= "#footnote_TN43"
+ class= "fnanchor">[TN 43]</a> <i>la mesure l'une de l'autre.</i> Some of
+ them considered consumption even as the chief thing (<i>Mirabeau</i>,
+ Philosophie rurale, ch. 1), which could never be too great. Further,
+ <i>Verri</i>, Meditazioni, I, 1-4. <i>Büsch</i>, Geldumlauf, III, 11
+ ff.</p>
+
+ <p class="footnote">The moderns have frequently inequitably neglected the
+ doctrine of consumption. Thus it appears to be a very characteristic fact
+ that in <i>Adam Smith's</i> great book, there is no division bearing the
+ title "consumption," and in the Basel edition of 1801, that word does not
+ occur in the index. <i>Droz</i> says that in reading the works of certain
+ of his followers, one might think that products were not made for the sake
+ of man, but man for their sake. But, on the other hand, there came a
+ strong reaction with <i>Lauderdale</i>, Inquiry, ch. 5; <i>Sismondi</i>,
+ N. Principes, L., II, passim; <i>Ganilh</i>, Dictionnaire Analytique, 93
+ ff., 159 ff.; but especially, and with important scientific discoveries,
+ <i>Malthus</i>, Principles, B. II. <i>St. Chamans</i>, Nouvel Essai sur la
+ Richesse des Nations, 1824, is an exaggerated caricature<a name=
+ "fnanchor_TN44" id= "fnanchor_TN44"></a><a href= "#footnote_TN44" class=
+ "fnanchor">[TN 44]</a> of the theory of consumption. For instance, he
+ resolves the income of individuals into foreign demand or the demand of
+ strangers (29); considers the first condition of public credit to lie in
+ the making of outlay (32); and even calls entirely idle consumers
+ productive, for the reason that they elevate by their demand a <i>utilité
+ possible</i>, to the dignity of a <i>utilité réelle</i> (286 ff.) The view
+ advocated by Mirabeau, and referred to above, again represented by <i>E.
+ Solly</i>, Considerations on Political Economy, 1814, and by
+ <i>Weishaupt</i>, Ueb. die Staatsausgaben und Auflagen, 1819. And so
+ according to <i>Carey</i>, Principles, ch. 35, § 6, the real difficulty
+ does not lie in production, but in finding a purchaser for the products.
+ But he overlooks the fact here that only the possessor of other products
+ can appear as a purchaser. From another side, most socialists think almost
+ exclusively of the wants of men, and scarcely consider it worth their
+ while to pay any attention to the means of satisfying them.</p>
+
+<p class="p2 center"><a name="S215"></a>SECTION CCXV.<span
+class='pagenum'>[Pg 202]</span></p>
+
+<p class="center smaller">NECESSITY OF THE PROPER SIMULTANEOUS DEVELOPMENT
+OF PRODUCTION AND CONSUMPTION.</p>
+
+<p>Hence, one of the most essential conditions of a prosperous national
+economy is that the development of consumption <span class='pagenum'>[Pg
+203]</span> should keep equal pace with that of production, and supply with
+demand.<a name= "fnanchor_215-1" id= "fnanchor_215-1"></a><a
+href="#footnote_215-1" class="fnanchor">[215-1]</a> The growth of a
+nation's economy naturally <span class='pagenum'>[Pg 204]</span> depends on
+this: that production should always be, so to speak, one step in advance of
+consumption, just as the organism of the animal body grows from the fact
+that the secretions always amount to something less than the amount of
+additional nutrition. A preponderance of secretions would here be disease;
+but so would be a too great preponderance of nutrition. Now, the
+politico-economical disease which is produced by the lagging behind of
+consumption and by the supply being much in advance of the demand, is
+called a commercial (market) crisis. Its immediate consequence is, that for
+a great many commodities produced, no purchasers can be found. The effect
+of this is naturally to lower prices. The profit of capital and wages
+diminish. A transition into another branch of production, not overcrowded,
+is either not possible at all or is attended with care, great difficulties
+and loss. It is very seldom that all these disadvantages are confined to
+the one branch in which the disease had its original seat. For, since the
+resources of the one class of producers have diminished, they cannot
+purchase as much from others as usual. The most distant members of the
+politico-economic body may be thereby affected.<a name="fnanchor_215-2"
+id= "fnanchor_215-2"></a><a href= "#footnote_215-2" class=
+"fnanchor">[215-2]</a></p>
+
+ <p class="footnote"> <a name="footnote_215-1" id="footnote_215-1"></a>
+ <a href="#fnanchor_215-1">[215-1]</a>
+ <i>Boisguillebert</i> lays the greatest weight on the harmony of the
+ different branches of commerce. <i>L'équilibre l'unique conservateur de
+ l'opulence générale</i>; this depends on there being always as many sales
+ as purchases. The moment one link in the great chain suffers, all the
+ others sympathise. Hence he opposes all taxation of commodities which
+ would destroy this harmony. (Nature des Richesses, ch. 4, 5, 6; Factum de
+ la France, ch. 4; Tr. des Grains I, 1.) <i>Canard</i> Principes d'E.
+ politique, ch. 6, compares the relation between production and consumption
+ in national economy with that between arteries and veins in the animal
+ body. On the other hand, <i>Sismondi</i>, N. Principes I, 381, describes
+ the bewilderment and want which are wont to arise when one wheel of the
+ great politico-economical machine turns round more rapidly than the
+ others.</p>
+
+ <p class="footnote"> <a name="footnote_215-2" id="footnote_215-2"></a>
+ <a href="#fnanchor_215-2">[215-2]</a>
+ Thus, for instance, an occasional stagnation of the cotton factories of
+ Lancashire has frequently the effect of "making all England seem like a
+ sick man twisting and turning on his bed of pain." (<i>L.
+ Faucher.</i>)</p>
+
+<p class="p2 center"><a name="S216"></a>SECTION CCXVI.<span
+class='pagenum'>[Pg 205]</span></p>
+
+<p class="center smaller">COMMERCIAL CRISES IN GENERAL.&mdash;A GENERAL
+GLUT.</p>
+
+<p>The greater number of such crises are doubtless special; that is, it is
+only in some branches of trade that supply outweighs demand. Most theorists
+deny the possibility of a general glut, although many practitioners
+stubbornly maintain it.<a name="fnanchor_216-1" id="fnanchor_216-1"></a><a
+href="#footnote_216-1" class="fnanchor">[216-1]</a> J. B. Say relies upon
+the principle that in the sale of products, as contradistinguished from
+gifts, inheritances, etc., payment can always be made only in other
+products. If, therefore, in one branch there be so much supplied that the
+price declines; as a matter of course, the commodity wanted in exchange
+will command all the more, and, therefore, have a better vent. In the years
+1812 and 1813, for instance, it was almost impossible to find a market for
+dry goods and other similar products. Merchants everywhere complained that
+nothing could be sold. At the same time, however, corn, meat and colonial
+products were very dear, and, therefore, paid a large profit to those who
+supplied them.<a name="fnanchor_216-2" id="fnanchor_216-2"></a><a
+href="#footnote_216-2" class="fnanchor">[216-2]</a> Every producer who
+wants to sell anything brings a demand into the market exactly
+corresponding to his supply. (<i>J. Mill.</i>) Every seller is <i>ex vi
+termini</i> also a buyer; if, therefore production is doubled, purchasing
+power is also doubled. (<i>J. S. Mill.</i>) Supply and demand are in the
+last analysis, really, only two different sides of one <span
+class='pagenum'>[Pg 206]</span> and the same transaction. And as long as we
+see men badly fed, badly clothed, etc., so long, strictly speaking, shall
+we be scarcely able to say that too much food or too much clothing has been
+produced.<a name="fnanchor_216-3" id="fnanchor_216-3"></a><a href=
+"#footnote_216-3" class="fnanchor">[216-3]</a></p>
+
+ <p class="footnote"> <a name="footnote_216-1" id="footnote_216-1"></a>
+ <a href="#fnanchor_216-1">[216-1]</a>
+ When those engaged in industrial pursuits speak of a lasting and
+ ever-growing over-production, they have generally no other reason for
+ their complaints than the declining of the rate of interest and of the
+ undertaker's profit which always accompany an advance in civilization.
+ Compare <i>J. S. Mill</i>, Principles, III, ch. 14, 4. However, the same
+ author, I, 403, admits the possibility of something similar to a general
+ over-production.</p>
+
+ <p class="footnote"> <a name="footnote_216-2" id="footnote_216-2"></a>
+ <a href="#fnanchor_216-2">[216-2]</a>
+ <i>Say's</i> celebrated Théorie des Débouchés, called by McCulloch his
+ chief merit, Traité, I, ch. 15. At about the same time the same theory was
+ developed by <i>J. Mill</i>, Commerce defended, 1808. <i>Ricardo's</i>
+ express adhesion, Principles, ch. 21. Important germs of the theory may be
+ traced much farther back: <i>Mélon</i>, Essai politique sur le Commerce,
+ 1734, ch. 2; <i>Tucker</i>, On the Naturalization Bill, 13; Sketch of the
+ Advance and Decline of Nations, 1795, 182.</p>
+
+ <p class="footnote"> <a name="footnote_216-3" id="footnote_216-3"></a>
+ <a href="#fnanchor_216-3">[216-3]</a>
+ Precisely the same commercial crisis, that of 1817 seq., which more than
+ anything else led <i>Sismondi</i> to the conclusion that too much had been
+ produced in all branches of trade, may most readily be reduced to
+ <i>Say's</i> theory.</p>
+
+ <p class="footnote">There was then a complaint, not only in Europe but
+ also in America, Hindoostan, South Africa and Australia, of the
+ unsaleableness of goods, overfull stores, etc.; but this, when more
+ closely examined, was found to be true only of manufactured articles and
+ raw material, of clothing and objects of luxury; while the coarser means
+ of subsistence found an excellent market, and were sold even at the
+ highest prices. Hence, in this case, there was by no means any such thing
+ as over-production. The trouble was that in the cultivation of corn and
+ other similar products, too little was produced. There was a bad harvest
+ even in 1816.</p>
+
+ <p class="footnote">The most important authorities in favor of the
+ possibility of a general glut are <i>Sismondi</i>, N. Principes, IV, ch.
+ 4, and in the Revue encyclopédique, Mai, 1824: Sur la Balance des
+ Consommations avec les Productions. Opposed by Say in the same periodical
+ (Juilliet, 1824); where the controversy was afterwards reopened in June
+ and July, 1827, by <i>Sismondi</i> and <i>Dunoyer</i>. Compare Etudes,
+ vol. I; <i>Ganilh</i>, Théorie, II, 348 ff.; <i>Malthus</i>, Principles,
+ II, ch. 1, 8. Compare <i>Rau</i>, <i>Malthus</i> and Say, über die
+ Ursachen der jetzigen Handelsstockung, 1821. <i>Malthus'</i> views were
+ surpassed by <i>Chalmers</i>, On Political Economy in Connexion with the
+ moral State of Society, 1832. But even <i>Malthus</i> himself in his
+ Definitions, ch. 10, No. 55, later, so defined a "general glut" that there
+ could be no longer question of his holding to its universality. For an
+ impartial criticism, see especially <i>Hermann</i>, Staatsw.
+ Untersuchungen, 251, and <i>M. Chevalier</i>, Cours, 1, Leçon, 3.</p>
+
+<p class="p2 center"><a name="S217"></a>SECTION CCXVII.</p>
+
+<p class="center smaller">COMMERCIAL CRISES IN GENERAL.</p>
+
+<p>All these allegations are undoubtedly true, in so far as the whole world
+is considered one great economic system, and the aggregate of all goods,
+including the medium of circulation, is borne in mind. The consolation
+which might otherwise lie herein is made indeed to some extent unrealizable
+by these conditions. It must not be forgotten in practice that men are
+<span class='pagenum'>[Pg 207]</span> actuated by other motives than that
+of consuming as much as possible.<a name="fnanchor_217-1" id=
+"fnanchor_217-1"></a><a href="#footnote_217-1" class="fnanchor">[217-1]</a>
+As men are constituted, the full consciousness of this possibility is not
+always found in connection with the mere power to do, to say nothing of the
+will to do.<a name="fnanchor_217-2" id="fnanchor_217-2"></a><a
+href="#footnote_217-2" class="fnanchor">[217-2]</a> There are, everywhere,
+certain consumption-customs corresponding with the distribution of the
+national income. Every great and sudden change in the latter is therefore
+wont to produce a great glut of the market.<a name="fnanchor_217-3"
+id= "fnanchor_217-3"></a><a href= "#footnote_217-3" class=
+"fnanchor">[217-3]</a> The party who in such case wins, is not wont to
+extend his consumption as rapidly as the loser has to curtail his; partly
+for the reason that the former <span class='pagenum'>[Pg 208]</span> cannot
+calculate his profit as accurately as the latter can his loss.<a
+name="fnanchor_217-4" id="fnanchor_217-4"></a><a href="#footnote_217-4"
+class="fnanchor">[217-4]</a></p>
+
+<p>Thus laws, the barriers interposed by tariffs, etc., may hinder the
+too-much of one country to flow over into the too-little of another.
+England, for instance might be suffering from a flood of manufactured
+articles and the United States from an oppressive depreciation in the value
+of raw material; but the tariff-laws places a hermetic dike between want on
+one side and superfluity on the other. Strong national antipathies and
+great differences of taste stubbornly adhered to may produce similar
+effects; for instance between the Chinese and Europeans. Even separation in
+space, especially when added to by badness of the means of transportation
+may be a sufficient hinderance especially when transportation makes
+commodities so dear that parties do not care to exchange. In such cases, it
+is certainly imaginable that there should be at once a want of proper vent
+or demand for all commodities; provided, we look upon each individual class
+of commodities the world over as one whole, and admit the exception that in
+individual places, certain parts of the whole more readily find a market
+because of the general crisis.</p>
+
+<p>Lastly, the mere introduction of trade by money destroys as it were the
+use of the whole abstract theory.<a name="fnanchor_217-5" id=
+"fnanchor_217-5"></a><a href= "#footnote_217-5" class=
+"fnanchor">[217-5]</a> So long as original barter prevailed, supply and
+demand met face to face. But by the intervention of money, the seller is
+placed in a condition to purchase only after a time, that is, to postpone
+the other <span class='pagenum'>[Pg 209]</span> half of the
+exchange-transaction as he wishes. Hence it follows that supply does not
+necessarily produce a corresponding demand in the real market. And thus a
+general crisis may be produced, especially by a sudden diminution of the
+medium of circulation.<a name="fnanchor_217-6" id="fnanchor_217-6"></a><a
+href="#footnote_217-6" class="fnanchor">[217-6]</a> And so, many very
+abundant harvests, which have produced a great decline in the value of raw
+material, and no less so a too large fixation of capital which stops before
+its completion,<a name="fnanchor_217-7" id="fnanchor_217-7"></a><a
+href="#footnote_217-7" class="fnanchor">[217-7]</a> may lead to general
+over-production. In a word, production does not always carry with itself
+the guaranty that it shall find a proper market, but only when it is
+developed in all directions, where it is progressive and in harmony with
+the whole national economy. <span class='pagenum'>[Pg 210]</span> To use
+Michel Chevalier's expression, the saliant angles of the one-half must
+correspond to the re-entrant angles of the other, or confusion will reign
+everywhere. Even in individual industrial enterprises, the proper
+combination of the different kinds of labor employed in them is an
+indispensable condition of success. Let us suppose a factory in which there
+are separate workmen occupied with nothing but the manufacture of ramrods.
+If these now exceed the proper limits of their production and have
+manufactured perhaps ten times as many ramrods as can be used in a year,
+can their colleagues, employed in the making of the locks or butt-ends<a
+name= "fnanchor_TN45" id= "fnanchor_TN45"></a><a href= "#footnote_TN45"
+class= "fnanchor">[TN 45]</a> of the gun, profit by their outlay? Scarcely.
+There will be a stagnation of the entire business, because part of its
+capital is paralyzed, and all the workmen will suffer damage.<a name=
+"fnanchor_217-8" id= "fnanchor_217-8"></a><a href= "#footnote_217-8" class=
+"fnanchor">[217-8]</a> <a name="fnanchor_217-9" id="fnanchor_217-9"></a><a
+href="#footnote_217-9" class="fnanchor">[217-9]</a></p>
+
+ <p class="footnote"> <a name="footnote_217-1" id="footnote_217-1"></a>
+ <a href="#fnanchor_217-1">[217-1]</a>
+ As <i>Ferguson</i>, History of Civil Society, says, the person who thinks
+ that all violent passions are produced by the influence of gain or loss,
+ err as greatly as the spectators of Othello's wrath who should attribute
+ it to the loss of the handkerchief.</p>
+
+ <p class="footnote"> <a name="footnote_217-2" id="footnote_217-2"></a>
+ <a href="#fnanchor_217-2">[217-2]</a>
+ If all the rich were suddenly to become misers, live on bread and water,
+ and go about in the coarsest clothing, etc., it would not be long before
+ all commodities, the circulating medium excepted, would feel the want of a
+ proper market&mdash;all, including even the most necessary means of
+ subsistence, because a multitude of former consumers, having no
+ employment, would be obliged to discontinue their demand. Over-production
+ would be greater yet if a great and general improvement in the industrial
+ arts or in the art of agriculture had gone before. Compare,
+ <i>Lauderdale</i> Inquiry, 88. This author calls attention to the fact
+ that a market in which the middle class prevails must put branches of
+ production in operation very different from those put in operation where
+ there are only a few over-rich people, and numberless utterly poor ones:
+ England, the United States&mdash;the East Indies, and France before the
+ Revolution. (Ch. 5, especially p. 358.)</p>
+
+ <p class="footnote"> <a name="footnote_217-3" id="footnote_217-3"></a>
+ <a href="#fnanchor_217-3">[217-3]</a>
+ If England, for instance, became bankrupt as a nation, the country would
+ not therefore become richer or poorer. The national creditors would lose
+ about £28,000,000 per annum, but the taxpayers would save that sum every
+ year. Now, of the former, there are not 300,000 families; of the latter
+ there are at least 5,000,000. Hence, the loss would there amount to £100 a
+ family per annum, and the gain here to not £6 per family. We may therefore
+ assume with certainty that the two items would not balance each other as
+ to consumption. The creditors of the nation, a numerous, and hitherto a
+ largely consuming class, now impoverished, would be obliged to curtail
+ their demand for commodities of every kind to a frightful extent; while a
+ great many taxpayers would not feel justified in basing an immediate
+ increase of their demand on so small a saving. Other revolutions, more
+ political in character, may operate in the same direction by despoiling a
+ brilliant court, a luxurious nobility or numerous official classes of
+ their former income.</p>
+
+ <p class="footnote"> <a name="footnote_217-4" id="footnote_217-4"></a>
+ <a href="#fnanchor_217-4">[217-4]</a>
+ The above truth has been exaggerated by Malthus and his school into the
+ principle that a numerous class of "unproductive consumers," who consume
+ more than they produce, is indispensable to a flourishing national
+ economy. From this point of view, the magnitude of England's debt
+ especially has been made a subject of congratulation. Compare
+ <i>Malthus</i>, Principles, II, ch. 1, 9. Similarly <i>Ortes</i>, E. N.,
+ III, 17, to whom even the <i>impostori mezzani</i> and <i>ladri</i> seem
+ to be a kind of necessity. (III, 23.) <i>Chalmers</i>, Political Economy,
+ III ff. If it was only question of consumption here, all that would be
+ needed would be to throw away the commodities produced in excess. Those
+ writers forget that a consumer, to be desirable, should be able to offer
+ counter-values.</p>
+
+ <p class="footnote"> <a name="footnote_217-5" id="footnote_217-5"></a>
+ <a href="#fnanchor_217-5">[217-5]</a>
+ <i>Malthus</i>, Principles, II, ch. 1, 3.</p>
+
+ <p class="footnote"> <a name="footnote_217-6" id="footnote_217-6"></a>
+ <a href="#fnanchor_217-6">[217-6]</a>
+ Let us suppose a country which has been used to effecting all its
+ exchanges by means of $100,000,000. All prices have been fixed, or have
+ regulated themselves accordingly. Let us now suppose that there has been a
+ sudden exportation of $10,000,000, and under such circumstances as to
+ delay the rapid filling up of the gap thus created. In the long run, the
+ demand of a country for a circulation may be satisfied just as well with
+ $90,000,000 as with $100,000,000; only it is necessary in the first
+ instance that the circulation should be accelerated or that the price of
+ money should rise 10 per cent. But neither of these accommodations is
+ possible immediately. In the beginning, sellers will refuse to part with
+ their goods 10 per cent. cheaper than they have been wont to. But so long
+ as those engaged in commercial transactions have not become completely
+ conscious of the revolution which has taken place in prices, and do not
+ act accordingly, there is evidently a certain ebb in the channels of
+ trade, and simultaneously in all. Demand and supply are kept apart from
+ each other by the intervention of a generally prevailing error concerning
+ the real price of the medium of circulation, and there must be, although
+ only temporarily, buyers wanted by every seller, except the seller of
+ money. In a country with a paper circulation, every great depreciation of
+ the value of the paper money not produced by a corresponding increase of
+ the same, may produce such results. <i>Say</i> is wrong when he says that
+ a want of instruments of exchange may be always remedied immediately and
+ without difficulty.</p>
+
+ <p class="footnote"> <a name="footnote_217-7" id="footnote_217-7"></a>
+ <a href="#fnanchor_217-7">[217-7]</a>
+ Suppose a people, the country population of which produce annually
+ $100,000,000 in corn over and above their own requirements, and thus open
+ a market for those engaged in industrial pursuits to the extent of
+ $100,000,000. And suppose that in consequence of three plentiful harvests,
+ and because of an inability to export, the market should grow to be
+ over-full, to such an extent that the much greater stores of corn have now
+ (§ 5, 103) a much smaller value in exchange than usual. The latter may
+ have declined to $70,000,000. Hence the country people now can buy from
+ the cities only $70,000,000 of city wares. The cities, therefore, suffer
+ from over-production. That people dispensing with the use of money should
+ establish an immediate trade between wheat and manufactured articles, in
+ which case the latter would exchange against a large quantity of the
+ former, is not practicable, because no one can extend his consumption of
+ corn beyond the capacity of his stomach, and the storage of wheat with the
+ intention of selling it when the price advances is attended with the
+ greatest difficulties.</p>
+
+ <p class="footnote"> <a name="footnote_217-8" id="footnote_217-8"></a>
+ <a href="#fnanchor_217-8">[217-8]</a>
+ If, for instance, there are too many railroads in process of construction,
+ all other commodities may in consequence lose in demand, and when the
+ further construction begins to be arrested on account of a superfluity of
+ roads, the new rail factories, etc. are involved in the crisis.</p>
+
+ <p class="footnote"> <a name="footnote_217-9" id="footnote_217-9"></a>
+ <a href="#fnanchor_217-9">[217-9]</a>
+ On the special pathology and therapeutics of this economic disease,
+ compare <i>Roscher</i>, Die Productionskrisen, mit besonderer Rücksicht
+ auf die letzen Jahrzente in the Gegenwart, Brockhaus, 1849, Bd., III, 721
+ ff., and his Ansichten der Volkswirthschaft, 1861, 279 ff.</p>
+
+<p class="p2 center"><a name="S218"></a>SECTION CCXVIII</p>
+
+<p class="center smaller">PRODIGALITY AND FRUGALITY.</p>
+
+<p>Prodigality is less odious than avarice, less irreconcilable with
+certain virtues, but incomparably more detrimental to a nation's economy.
+The miser's treasures, even when they have been buried, may be employed
+productively, at least, <span class='pagenum'>[Pg 211]</span> after his
+death; but prodigality <i>destroys</i> resources. So, too, avarice is a
+repulsive vice, extravagance a seductive one. The practice of frugality<a
+name="fnanchor_218-1" id="fnanchor_218-1"></a><a href="#footnote_218-1"
+class="fnanchor">[218-1]</a> in every day life is as far removed from one
+extreme as the other. It is the "daughter of wisdom, the sister of
+temperance and the mother of freedom." Only with its assistance can
+liberality be true, lasting and successful. It is, in short, reason and
+virtue in their application to consumption.<a name="fnanchor_218-2"
+id="fnanchor_218-2"></a><a href="#footnote_218-2" class="fnanchor">[218-2]
+</a> <a name="fnanchor_218-3" id="fnanchor_218-3"></a><a href=
+"#footnote_218-3" class="fnanchor">[218-3]</a></p>
+
+ <p class="footnote"> <a name="footnote_218-1" id="footnote_218-1"></a>
+ <a href="#fnanchor_218-1">[218-1]</a>
+ Negatively: the principle of sparing; positively: the principle of making
+ the utmost use of things. (<i>Schäffle</i>, Kapitalismus und Socialismus,
+ 27.)</p>
+
+ <p class="footnote"> <a name="footnote_218-2" id="footnote_218-2"></a>
+ <a href="#fnanchor_218-2">[218-2]</a>
+ Admirable description of economy in <i>B. Franklin's</i> Pennsylvanian
+ Almanac, How poor Rich. Saunders got rich; also in <i>J. B. Say</i>,
+ Traité, III, ch. 5. <i>Adam Smith</i>, W. of N., II, ch. 3, endeavors to
+ explain why it is that, on the whole and on a large scale, the principle
+ of economy predominates over the seductions of extravagance. This,
+ however, is true only of progressive nations.</p>
+
+ <p class="footnote"> <a name="footnote_218-3" id="footnote_218-3"></a>
+ <a href="#fnanchor_218-3">[218-3]</a>
+ The Savior Himself in His miracles, the highest pattern of economy:
+ <i>Matth.</i>, 14, 20; <i>Mark</i>, 6, 43; 8, 8; <i>Luke</i>, 9, 17;
+ <i>John</i>, 6, 12. That He did not intend to prohibit thereby all noble
+ luxury is shown by passages such as <i>Matth.</i>, 26, 6 ff.; <i>John</i>,
+ 2, 10.</p>
+
+<p class="p2 center"><a name="S219"></a>SECTION CCXIX.</p>
+
+<p class="center smaller">EFFECT OF PRODIGALITY.</p>
+
+<p>Prodigality destroys goods which either were capital or might have
+become capital. But, at the same time, it either directly or indirectly
+increases the demand for commodities. Hence, for a time, it raises not only
+the interest of capital, but the prices of many commodities. Consumers
+naturally suffer in consequence; many producers make a profit greater than
+that usual in the country until such time as the equilibrium between supply
+and demand has been restored by an increase of the supply of the coveted
+products. But the capital of spendthrifts is wont to be suddenly exhausted;
+demand suddenly decreases, and producers suffer a crisis. As Benjamin
+Franklin says, he who buys superfluities will at last have to sell
+necessities. Thus the extravagance of a court may contribute <span
+class='pagenum'>[Pg 212]</span> to the rapid prosperity of a place of
+princely residence.<a name="fnanchor_219-1" id="fnanchor_219-1"></a><a
+href="#footnote_219-1" class="fnanchor">[219-1]</a> But it should not be
+forgotten that all the food-sap artificially carried there had to be
+previously withdrawn from the provinces. The clear loss caused by the
+destruction of wealth should also be borne in mind.<a name="fnanchor_219-2"
+id="fnanchor_219-2"></a><a href="#footnote_219-2" class="fnanchor">[219-2]
+</a> <a name="fnanchor_219-3" id="fnanchor_219-3"></a><a href=
+"#footnote_219-3" class="fnanchor">[219-3]</a></p>
+
+ <p class="footnote"> <a name="footnote_219-1" id="footnote_219-1"></a>
+ <a href="#fnanchor_219-1">[219-1]</a>
+ A rapid change of hands by money, as it is called in every day life. See,
+ <i>per contra</i>, <i>Tucker</i>, Sermons, 31, 1774.</p>
+
+ <p class="footnote"> <a name="footnote_219-2" id="footnote_219-2"></a>
+ <a href="#fnanchor_219-2">[219-2]</a>
+ Only the superficial observer is apt to notice this apparent prosperity of
+ the capital much more readily than the decline of the rest of the country,
+ which covers so much more territory. In like manner, many wars have had
+ the appearance of promoting industry, for the reason that some branches
+ grew largely in consequence of the increased demand of the state; but they
+ grew at the expense of all others which had to meet the increased taxes.
+ Compare <i>Jacob</i> in <i>Lowe</i>, England nach seinem gegenwartigen
+ Zustande, 1823, cap. 2, 3; <i>Nebenius</i>, Oeffentlicher Credit, I, Aufl.,
+ 419 ff.; <i>Hermann</i>, department<a name= "fnanchor_TN46" id=
+ "fnanchor_TN46"></a><a href= "#footnote_TN46" class= "fnanchor">[TN
+ 46]</a> of the Seine, amounted, in 1850, to 497,000,000 francs; in the
+ department of the Bouches du Rhone, to 39,000,000 francs; in 1855, on the
+ other hand, they were, on account of the war, 887,000,000 francs and
+ 141,000,000. (Journal des Econ., Juil., 1857, 32 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_219-3" id="footnote_219-3"></a>
+ <a href="#fnanchor_219-3">[219-3]</a>
+ The Journal des Economistes for March, 1854, very clearly shows, in
+ opposition to the state-sophists who recommended extravagant balls, etc.
+ as a means of advancing industry, and who even advocated the paying
+ officials higher salaries on this account, and making greater outlays by
+ them compulsory, that such luxury when it comes of itself may be a symptom
+ of national wealth, but that it is a very bad means to produce prosperity
+ artificially.</p>
+
+<p class="p2 center"><a name="S220"></a>SECTION CCXX.</p>
+
+<p class="center smaller">WHEN SAVING IS INJURIOUS.</p>
+
+<p>The act of saving, if the consumption omitted was a productive one, is
+detrimental to the common good; because now a real want of the national
+economy remains unsatisfied.<a name= "fnanchor_220-1" id=
+"fnanchor_220-1"></a><a href= "#footnote_220-1" class=
+"fnanchor">[220-1]</a> The effecting of savings by curtailing unproductive
+consumption may embarrass those who had calculated on its continuance. But
+its utility or damage to the whole national economy will <span
+class='pagenum'>[Pg 213]</span> depend on the application or employment of
+what is saved. Here two different cases are possible.</p>
+
+<p>A. It is stored up and remains idle. If this happens to a sum of money,
+the number of instruments of exchange in commerce is diminished. Hence, in
+consequence, there may be either a general fall in the price of
+commodities, or some commodities may remain unsold; that is, according to §
+217, a commercial crisis of greater or smaller extent.<a name="fnanchor_220-2"
+id="fnanchor_220-2"></a><a href="#footnote_220-2" class=
+"fnanchor">[220-2]</a> If it be objects of immediate consumption that are
+stored up and lie idle, articles of food or clothing, for instance, the
+price of such commodities is wont to be raised by the new and unusual
+demand <span class='pagenum'>[Pg 214]</span> for them, precisely as it is
+lowered afterwards when the stores are suddenly opened and thrown upon the
+market.<a name="fnanchor_220-3" id="fnanchor_220-3"></a><a href=
+"#footnote_220-3" class="fnanchor">[220-3]</a></p>
+
+<p>B. If the saving effected be used to create fixed capital, there is as
+much consumption of goods, the same support of employed workmen, the same
+sale for industrial articles as in the previous unproductive consumption;
+only, there the stream is usually conducted into other channels. If a rich
+man now employs in house-building what he formerly paid out to mistresses;
+masons, carpenters, etc. earn what was formerly claimed by hair-dressers,
+milliners, etc.: there is less spent for truffles and champagne and more
+for bread and meat. The last result is a house which adds permanently
+either to personal enjoyment, or permanently increases the material
+products of the nation's economy.<a name="fnanchor_220-4" id=
+"fnanchor_220-4"></a><a href="#footnote_220-4" class="fnanchor">[220-4]</a>
+And it is just so when the wealth saved is used as circulating capital.
+Here, the wealth saved is consumed in a shorter or longer time; and to
+superficial observers, this saving might seem like destruction; but it is
+distinguished from the last by this, that it always reproduces its full
+equivalent and more. However, the whole quantity of goods brought into the
+market by such new capital cannot be called its product. Only the use
+(<i>Nützung</i>) of the new capital can be so called; that is the holding
+together or the development in some other way of other forces which were
+already in existence until their achievements are perfected and ready for
+sale.<a name="fnanchor_220-5" id="fnanchor_220-5"></a><a href=
+"#footnote_220-5" class="fnanchor">[220-5]</a> <a name="fnanchor_220-6"
+id="fnanchor_220-6"></a><a href="#footnote_220-6" class=
+"fnanchor">[220-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_220-1" id="footnote_220-1"></a>
+ <a href="#fnanchor_220-1">[220-1]</a>
+ What evil influences such saving can have may be seen from Prussian
+ frugality in its military system before 1806.</p>
+
+ <p class="footnote"> <a name="footnote_220-2" id="footnote_220-2"></a>
+ <a href="#fnanchor_220-2">[220-2]</a>
+ The custom of burying treasure is produced by a want of security (compare
+ <i>Montanari</i>, Delia Moneta, 1683-87, 97 Cust.), and by an absence of
+ the spirit which leads to production. As <i>Burke</i> says, where property
+ is not sacred, gold and silver fly back into the bosom of the earth whence
+ they came. Hence, in the middle ages, this custom was frequent, and is
+ yet, in most oriental despotic countries. (<i>Montesquieu</i>, E. des L.,
+ XXII, 2.) And so in Arabia: <i>d'Arvieux</i>, <i>Rosenmüller's</i>
+ translation, 61 seq. <i>Fontanier</i>, Voyage dans l'Inde et dans le Golfe
+ persique, 1644, I, 279. A Persian governor on his death bed refused to
+ give any information as to where he had buried his treasure. His father
+ had always murdered the slave who helped him to bury his money or any part
+ of it. (<i>Klemm</i>, Kulturgeschichte, VII, 220.) In lower stages of
+ civilization, it is a very usual luxury to have one's treasures buried
+ with the corpse. In relation to David's grave, see <i>Joseph.</i>, Ant.
+ Jud., VII, 15,3, XIII, 8, 4; XVI, 7, 1. Hence the orientals believe that
+ <i>every</i> unknown ruin hides a treasure, that every unintelligible
+ inscription is a talisman to discover it by, and that every scientific
+ traveler is a treasure-digger, (<i>v. Wrede</i>, R. in Hadhramaut, 113,
+ 182 and <i>passim</i>.) Similarly in Sicily. (<i>Rehfues</i>, Neuester
+ Zustand von S., 1807, I, 99.) In the East Indies every circumstance that
+ weakens confidence in the power of the government increases the frequency
+ of treasure-burial, as was noticed, for instance, after the Afghan defeat.
+ Treasure-burial by the Spanish peasantry (<i>Borrego</i>, translated by
+ Rottenkamp, 81), in Ireland (<i>Wakefield</i>, Account of I. I, 593), in
+ the interior of Russia (<i>Storch</i>, Handbuch, I, 142), and among the
+ Laplanders. The custom was very much strengthened among the latter when,
+ in 1813, they lost 80 per cent. by the bankruptcy of the state through its
+ paper money. (<i>Brooke</i>, Winter in Lapland, 1829, 119; compare
+ <i>Blom</i>, Statistik von Norwegen, II, 205.) As during the Thirty Years'
+ War, so also in 1848, it is said that large amounts of money were burned
+ by the Silesian and Austrian peasantry. Much of it is lost forever, but,
+ on the whole, much treasure is wont to be found where much is buried;
+ governments there make it a regal right to search for it.</p>
+
+ <p class="footnote"> <a name="footnote_220-3" id="footnote_220-3"></a>
+ <a href="#fnanchor_220-3">[220-3]</a>
+ If the hoarding takes place in a time of superfluity, and the restitution
+ of the stores in a time of want, there is of course no detrimental
+ disturbance, but on the contrary the consequence is a beneficent
+ equilibrium of prices. This is the fundamental idea in the storage of
+ wheat.</p>
+
+ <p class="footnote"> <a name="footnote_220-4" id="footnote_220-4"></a>
+ <a href="#fnanchor_220-4">[220-4]</a>
+ In the construction of national buildings, etc., we have the following
+ course of things: compulsory contributions made by taxpayers, or an
+ invitation to the national creditors to desist somewhat from their usual
+ amount of consumption, and to employ what is saved in the building of
+ canals, roads etc. In France, for instance, after 1835, 100,000,000 francs
+ per annum. (<i>M. Chevalier</i>, Cours, I, 109.) The higher and middle
+ classes of England saved, not without much trouble, however, between 1844
+ and 1858, £134,500,000 in behalf of railway construction.
+ <i>Tooke-Newmarch</i>.</p>
+
+ <p class="footnote"> <a name="footnote_220-5" id="footnote_220-5"></a>
+ <a href="#fnanchor_220-5">[220-5]</a>
+ Such savings have sometimes been prescribed by the state. In ancient
+ Athens many prohibitions of consumption in order to allow the productive
+ capital to first attain a certain height. Thus it was forbidden to
+ slaughter sheep until they had lambed, or before they were shorn.
+ (<i>Athen.</i>, IX, 375, I. 9.) Similarly<a name= "fnanchor_TN47" id=
+ "fnanchor_TN47"></a><a href= "#footnote_TN47" class= "fnanchor">[TN
+ 47]</a> the old prohibition of the exportation of figs. (Ibid., III, 74.)
+ Compare Petit. Leges. Atticae, V, 3. <i>Boeckh</i>, Staatshaushaltung, I,
+ 62 seq.</p>
+
+ <p class="footnote"> <a name="footnote_220-6" id="footnote_220-6"></a>
+ <a href="#fnanchor_220-6">[220-6]</a> The process of the transformation of
+ savings from a money-income, in a money-economy (<i>Geldwirthschaft</i>),
+ into other products, more closely analyzed in <i>v. Mangoldt</i>, V. W.
+ L., 152 ff.</p>
+
+<p class="p2 center"><a name="S221"></a>SECTION CCXXI.<span
+class='pagenum'>[Pg 215]</span></p>
+
+<p class="center smaller">LIMITS TO THE SAVING OF CAPITAL.</p>
+
+<p>It may be seen from the foregoing, that the mere saving of capital, if
+the nation is to be really enriched thereby, has its limits. Every consumer
+likes to extend his consumption-supply and his capital in use
+(<i>Gebrauchskapitalien</i>); but not beyond a certain point.<a name=
+"fnanchor_221-1" id= "fnanchor_221-1"></a><a href= "#footnote_221-1" class=
+"fnanchor">[221-1]</a> Besides, as trade becomes more flourishing, smaller
+stores answer the same purpose. And no intelligent man can desire his
+productive capital increased except up to the limit that he expects a
+larger market for his enlarged production. What merchant or manufacturer is
+there who would rejoice or consider himself enriched, if the number of his
+customers and their desire to purchase remaining the same, he saw his
+stores of unsaleable articles increase every year by several thousands?</p>
+
+<p>This is another difference between national resources or world resources
+and private resources. The resources of a private person, which are only a
+link in the whole chain of trade, and which are, therefore, estimated at
+the value in exchange of their component parts should, indeed, always be
+increased by savings made. (§ 8.) For even the most excessive <span
+class='pagenum'>[Pg 216]</span> increase of supply in general, which
+largely lowers the price of a whole class of commodities, will never reduce
+the price of individual quantities of that commodity below zero, and
+scarcely to zero. It is quite otherwise in the case of national or world
+resources which must be estimated according to the value in use of their
+component parts. Every utility supposes a want. Where, therefore, the want
+of a commodity has not increased, and notwithstanding there is a continuing
+increase in the supply, the only result must be a corresponding decrease in
+the utility of each individual part.<a name="fnanchor_221-2" id=
+"fnanchor_221-2"></a><a href="#footnote_221-2" class=
+"fnanchor">[221-2]</a></p>
+
+<p>If a people were to save all that remained to them over and above their
+most urgent necessities, they would soon be obliged to seek a wider market
+in foreign countries, or loan their capital there; but they would make no
+advance whatever <span class='pagenum'>[Pg 217]</span> in higher culture
+nor add anything to the gladness of life.<a name= "fnanchor_221-3" id=
+"fnanchor_221-3"></a><a href= "#footnote_221-3" class=
+"fnanchor">[221-3]</a> On the other hand, if they would not save at all,
+they would be able to extend their enjoyments only at the expense of their
+capital and of their future. Yet these two extremes find their correctives
+in themselves. In the former case, a glut of the market would soon produce
+an increased consumption and a diminished production; in the latter the
+reverse. The ideal of progress demands that the increased outlay with
+increased production should be made only for worthy objects, and chiefly by
+the rich, while the middle and lower classes should continue to make
+savings and thus contribute to wipe out differences of fortune.<a
+name="fnanchor_221-4" id="fnanchor_221-4"></a><a href="#footnote_221-4"
+class="fnanchor">[221-4]</a></p>
+
+ <p class="footnote"> <a name="footnote_221-1" id="footnote_221-1"></a>
+ <a href="#fnanchor_221-1">[221-1]</a>
+ Up to this point, indeed, wants increase with the means of their
+ satisfaction. The man who has two shirts always strives to get a dozen,
+ while the person who has none at all, very frequently does not care for
+ even one. And so the person who has silver spoons generally desires also
+ to possess silver candle-sticks and silver plates. On Lucullus' 5,000
+ chlamydes, see <i>Horat.</i>, Epist., I, 6, 40 ff.</p>
+
+ <p class="footnote"> <a name="footnote_221-2" id="footnote_221-2"></a>
+ <a href="#fnanchor_221-2">[221-2]</a>
+ That consumption and saving are not two opposites which exclude each other
+ is one of <i>Adam Smith's</i> most beautiful discoveries. See Wealth of
+ Nat., II, ch. 3. But compare <i>Pinto</i>, Du Crédit et de la Circulation,
+ 1771, 335. Before his time most writers who were convinced of the
+ necessity of consumption were apologists of extravagance. Thus <i>v.
+ Schröder</i>, F. Schatz- und Rentkammer, 23 seq. 47, 172. Louis XIV.'s
+ saying: "A King gives alms when he makes great outlays." According to
+ <i>Montesquieu</i>, Esprit des Louis<a name= "fnanchor_TN48" id=
+ "fnanchor_TN48"></a><a href= "#footnote_TN48" class= "fnanchor">[TN
+ 48]</a> VII., 4, the poor die of hunger when the rich curtail their
+ expenses. This view, which must have found great favor among the imitators
+ of Louis XIV. and Louis XV. was entertained to some extent by the
+ Physiocrates; for instance, <i>Quesnay</i>, Maximes générales, 21 seq.
+ Compare <i>Turgot</i>, Œuvres, éd, <i>Dare</i>, 424 ff. On the other hand,
+ <i>Adam Smith</i>, loc. cit. says that the spendthrift is a public enemy,
+ and the person who saves a public benefactor. <i>Lauderdale</i>, Inquiry,
+ 219, reacts so forcibly against the one-sidedness which this involves that
+ he believes no circumstance possible "which could so far change the nature
+ of things as to turn parsimony into a means of increasing wealth." In his
+ polemic against Pitts' sinking fund as inopportune and excessive, he
+ assumes that all sums saved in that way are completely withdrawn from the
+ national demand. See per contra <i>Hufeland</i> n. Grundlegung I, 32, 238.
+ <i>Sismondi</i>, N. P. II, ch. 6, with his distinction between
+ <i>production</i> and <i>revenu</i>, is more moderate; the former is
+ converted into the latter only in as much as it is "realized," that is,
+ finds a consumer who desires it, and pays for it. Now only can the
+ producer rely on anything; can he restore his productive capital, estimate
+ his profit, and use it in consumption, and lastly begin the whole business
+ over again.... A stationary country must remain stationary in everything.
+ It cannot increase its capital and widen its market while its aggregate
+ want remains unaltered. (IV, ch. 1.)</p>
+
+ <p class="footnote"> <a name="footnote_221-3" id="footnote_221-3"></a>
+ <a href="#fnanchor_221-3">[221-3]</a>
+ Thus <i>John Stuart Mill</i> thinks that the American people derive from
+ all their progress and all their favorable circumstances only this
+ advantage: "that the life of the whole of one sex is devoted to
+ dollar-hunting, and of the other to breeding dollar-hunters." (IV, ch. 6,
+ 2.) In the popular edition of 1865, after the experience of the American
+ civil war, he materially modified this judgment.</p>
+
+ <p class="footnote"> <a name="footnote_221-4" id="footnote_221-4"></a>
+ <a href="#fnanchor_221-4">[221-4]</a>
+ <i>Storch</i>, Nationaleinkommen, 125 ff. That there is at least not too
+ much to be feared from the making of too great savings is shown by
+ <i>Hermann</i>, St. Untersuch., 371 seq. On the other hand, there is less
+ wealth destroyed by spendthrifts than is generally supposed, for
+ spendthrifts are most frequently cheated by men who make savings
+ themselves. (<i>J. S. Mill</i>, Principles, I, ch. 5, 5.)</p>
+
+<p class="p2 center"><a name="S222"></a>SECTION CCXXII.</p>
+
+<p class="center smaller">SPENDTHRIFT NATIONS.</p>
+
+<p>As there are extravagant and frugal individuals, so also are there
+extravagant and frugal nations. Thus, for instance, we must ascribe great
+national frugality to the Swiss. In many well-to-do families in that
+country, it is a principle acted upon to require the daughters to look to
+the results of their white sewing, instead of giving them pin-money; to
+gather up the crumbs after coffee parties in the presence of the guests,
+and to make soup of them afterwards, etc. Sons are generally neither
+supported nor helped to any great extent by their <span class='pagenum'>[Pg
+218]</span> parents in their lifetime, and are required to found their own
+homes. They, therefore, grow rich from inheritance only late in years, when
+they are accustomed to a retired and modest mode of life, and have little
+desire, from mere convenience sake, to change it for another. And so Temple
+informs us that it never occurs to the Dutch that their outlay should equal
+their income; and when this is the case they consider that they have spent
+the year in vain. Such a mode of life would cost a man his reputation there
+as much as vicious excess does in other countries. The greatest order and
+the most accurate calculation of all outlay in advance is found in union
+with this; so that Temple assures us he never heard of a public or private
+building which was not finished at the time stipulated for in advance.<a
+name="fnanchor_222-1" id="fnanchor_222-1"></a><a href="#footnote_222-1"
+class="fnanchor">[222-1]</a></p>
+
+<p>On the other hand, the Englishman lives rather luxuriantly. He is so
+used to enjoying comparative abundance, that when English travelers see the
+peasantry of the continent living in great frugality, they generally
+attribute it to poverty and not to their disposition to make savings. If
+England has grown rich, it is because of the colossal magnitude of its
+production, which is still more luxuriant and abundant than its
+consumption.<a name="fnanchor_222-2" id="fnanchor_222-2"></a><a
+href="#footnote_222-2" class="fnanchor">[222-2]</a> This contrast may be
+the effect in part of nationality and climate;<a name="fnanchor_222-3"
+id="fnanchor_222-3"></a><a href="#footnote_222-3" class=
+"fnanchor">[222-3]</a> <span class='pagenum'>[Pg 219]</span> but it is
+certainly the effect in part also of a difference in the stage of
+civilization which these countries have respectively reached. The elder
+Cato had a maxim that a widow might, indeed, allow her fortune to diminish,
+but that it was a man's duty to leave more behind him than he had
+inherited.<a name="fnanchor_222-4" id="fnanchor_222-4"></a><a href=
+"#footnote_222-4" class="fnanchor">[222-4]</a> And how prodigally did not
+the lords of the universe live in later times!</p>
+
+ <p class="footnote"> <a name="footnote_222-1" id="footnote_222-1"></a>
+ <a href="#fnanchor_222-1">[222-1]</a>
+ <i>Temple</i>, Observations on the U. Provinces, Works, I, 136, 138 seq.,
+ 179. <i>Roscher</i>, Geschichte der engl. Volkswirthschaftsl., 129. Thus,
+ for instance, the Richesse de Hollande, I, 305, describes a rich town near
+ Amsterdam in which a man with an income of 120,000 florins a year expended
+ probably only 1,000 florins per annum on himself.</p>
+
+ <p class="footnote"> <a name="footnote_222-2" id="footnote_222-2"></a>
+ <a href="#fnanchor_222-2">[222-2]</a>
+ As early a writer as <i>D. Defoe</i>, Giving Alms no Charity! 1704, says:
+ the English get estates; the Dutch save them. An Englishman at that time
+ with weekly wages of 20 shillings just made ends meet; while a Dutchman
+ with the same grew rich, and left his children behind him in very
+ prosperous circumstances, etc. <i>L. Faucher</i> draws a similar contrast
+ between his fellow countrymen and the English. <i>Goethe's</i> ingenuous
+ observations (Werke, Bd., 23, 246, ed. of 1840) in his Italian journey,
+ show that the Italians, too, know how to save. <i>Molti pochi fanno un
+ assai!</i> And so in Bohemia, the Czechs have a good reputation for
+ frugality, sobriety, etc. as workmen. They are more frugal than the
+ Germans, although all the larger businesses belong to Germans, because
+ when the Czech has saved something, he prefers to return to his village to
+ putting his savings in jeopardy by speculation.</p>
+
+ <p class="footnote"> <a name="footnote_222-3" id="footnote_222-3"></a>
+ <a href="#fnanchor_222-3">[222-3]</a>
+ Drunkenness a common vice of northern people: thus in antiquity the
+ Thracians (<i>Athen.</i>, X, 42; <i>Xenoph.</i>, Exp. Cyri, VII, 3, 32),
+ the Macedonians, for instance, Philips (<i>Demosth.</i>, Olynth., II, 23)
+ and Alexander's (<i>Plutarch</i>, Alex., 70; De Adulat, 13). To drink like
+ a Scythian, meant, among the Greeks, to drink like a beast.
+ (<i>Athen.</i>, X, 427; <i>Herod.</i>, VI, 84.) On North German
+ drunkenness in the 16th century, see <i>Seb. Münster</i>, Cosmogr., 326,
+ 730. <i>Kantzow</i>, Pomerania, II, 128.</p>
+
+ <p class="footnote"> <a name="footnote_222-4" id="footnote_222-4"></a>
+ <a href="#fnanchor_222-4">[222-4]</a>
+ <i>Plutarch</i>, Cato, I, 21.</p>
+
+<p class="p2 center"><a name="S223"></a>SECTION CCXXIII.</p>
+
+<p class="center smaller">THE MOST DETRIMENTAL KIND OF EXTRAVAGANCE.</p>
+
+<p>The kind of extravagance which it is most natural we should desire to
+see put an end to, is that which procures enjoyment to no one. I need call
+attention only to the excessive durability and solidity of certain
+buildings. It is more economical to build a house that will last 60 years
+for $10,000, than one which will last 400 years for $20,000; for in 60
+years the interest saved on the $10,000 would be enough to build three such
+houses.<a name="fnanchor_223-1" id="fnanchor_223-1"></a><a href=
+"#footnote_223-1" class="fnanchor">[223-1]</a> This is, of course, not
+applicable to houses built as works of art, or only to produce an imposing
+effect. The object the ancient Egyptians had in view in building their
+<span class='pagenum'>[Pg 220]</span> obelisks and pyramids continues to be
+realized even in our day.</p>
+
+<p>I might also call attention to the premature casting away of things
+used. Our national economy has saved incredible sums since rags have been
+manufactured into paper. In Paris 4,000 persons make a living from what
+they pick up in the streets.<a name= "fnanchor_223-2" id=
+"fnanchor_223-2"></a><a href= "#footnote_223-2" class=
+"fnanchor">[223-2]</a></p>
+
+ <p class="footnote"> <a name="footnote_223-1" id="footnote_223-1"></a>
+ <a href="#fnanchor_223-1">[223-1]</a>
+ Compare <i>Minard</i>, Notions élémentaires d'Economie politique appliquée
+ aux Travaux publics, 1850, 71 ff. He calls to mind the many strong castles
+ of the age of chivalry, the Roman aqueducts, theaters, etc., which are
+ still in a good state of preservation, but which can be used by no one; so
+ many bridges too narrow for our purposes, and so many roads too steep. The
+ sluices at Dunkirk, made 12.60 metres in width by Vauban, were made 16
+ meters wider in 1822, and still are too narrow for Atlantic steamships. In
+ England, private individuals have well learned to take all this into
+ account. Compare <i>J. B. Say</i>, Cours pratique, translated by Morstadt,
+ I, 454 ff.</p>
+
+ <p class="footnote"> <a name="footnote_223-2" id="footnote_223-2"></a>
+ <a href="#fnanchor_223-2">[223-2]</a>
+ <i>Fregier</i>, Die gefährlichen Klassen, translated 1840, I, 2, 38. In
+ Yorkshire it is said that woolen rags to the amount of £52,000,000 a year
+ are manufactured into useful articles. (<i>Tooke</i>, Wool-Production,
+ 196.) Compare The Use of Refuse: Quart. Rev., April, 1868. On the ancient
+ Greek ragpickers the so-called σπερμολόγοις,<a name= "fnanchor_TN49" id=
+ "fnanchor_TN49"></a><a href= "#footnote_TN49" class= "fnanchor">[TN
+ 49]</a> see <i>St. John</i>, The Hellenes, III, 91; on the Roman
+ <i>Centonariis</i>: <i>Cato</i>, R. R., 135; <i>Columella</i>, R. R., I,
+ 8, 9; <i>Marquardt</i>, II, 476, V, 2, 187.</p>
+
+<p><span class='pagenum'>[Pg 221]</span></p>
+
+<h3 class="p4">CHAPTER II.</h3>
+
+<h3>LUXURY.</h3>
+
+<p class="p2 center"><a name="S224"></a>SECTION CCXXIV.</p>
+
+<p class="center smaller">LUXURY IN GENERAL.</p>
+
+<p>The idea conveyed by the word luxury is an essentially relative one.
+Every individual calls all consumption with which he can dispense himself,
+and every class that which seems not indispensable to themselves, luxury.
+The same is true of every age and nation. Just as young people ridicule
+every old fashion as pedantry, every new fashion is censured by old people
+as luxury.<a name="fnanchor_224-1" id="fnanchor_224-1"></a><a href=
+"#footnote_224-1" class="fnanchor">[224-1]</a></p>
+
+<p>But (§ I) a higher civilization always finds expression in an increased
+number and an increased urgency of satisfied wants. Yet, there is a limit
+at which new or intensified wants cease to be an element of higher
+civilization, and become elements of demoralization. Every immoral and
+every unwise want <span class='pagenum'>[Pg 222]</span> exceeds this
+limit.<a name= "fnanchor_224-2" id= "fnanchor_224-2"></a><a href=
+"#footnote_224-2" class="fnanchor">[224-2]</a> Immoral wants are not only
+those the satisfaction of which wounds the conscience, but also those in
+which the necessities of the soul are postponed to the affording of
+superfluities to the body; and where the enjoyment of the few is purchased
+at the expense of the wretchedness of the many. And not only those are
+unwise or imprudent for which the voluntary outlay is greater than one's
+income, but those also where the indispensable is made to suffer for the
+dispensable.</p>
+
+<p>Thus it was in Athens, in the time of Demosthenes, when the festivities
+of the year cost more than the maintenance of the fleet; when Euripides'
+tragedies came dearer to the people than the Persian war in former times.
+There was even a law passed (Ol. 107,4) prohibiting the application of the
+dramatic fund to purposes of war under pain of death.<a name="fnanchor_224-3"
+id="fnanchor_224-3"></a><a href="#footnote_224-3" class=
+"fnanchor">[224-3]</a></p>
+
+<p>In the history of any individual people, it may be shown with
+approximate certainty at what point luxury exceeded its salutary limits.
+But in the case of two different nations, it is quite possible that what
+was criminal prodigality with the one, may have been a salutary enjoyment
+of life with the other; in case their economic (<i>wirthschaftlichen</i>)
+powers are different. Precisely as in the case of individuals, where for
+instance, the daily drinking of table wine may be simplicity in the rich
+and immoral luxury in the case of a poor father of a family.<a
+name="fnanchor_224-4" id="fnanchor_224-4"></a><a href="#footnote_224-4"
+class="fnanchor">[224-4]</a> Healthy reason has this peculiarity, that
+where people will not listen to it, it never hesitates to make itself<a
+name= "fnanchor_TN50" id= "fnanchor_TN50"></a><a href= "#footnote_TN50"
+class= "fnanchor">[TN 50]</a> felt. (<i>Benjamin Franklin.</i>)<a
+name="fnanchor_224-5" id="fnanchor_224-5"></a><a href="#footnote_224-5"
+class="fnanchor">[224-5]</a></p>
+
+<p>However, the luxury of a period always throws itself, by way of
+preference, on those branches of commodities which are cheapest.</p>
+
+ <p class="footnote"> <a name="footnote_224-1" id="footnote_224-1"></a>
+ <a href="#fnanchor_224-1">[224-1]</a>
+ <i>Stuart</i>, Principles, II, ch. 30, <i>Ferguson</i>, History of Civil
+ Society, VI, 2. Thus <i>Dandolus</i>, Chron. Venet., 247, tells of the
+ wife of a doge at Constantinople who was so given to luxury that she ate
+ with a golden fork instead of her fingers. But she was punished for this
+ outrage upon nature: her body began to stink even while she was alive. In
+ the introduction to <i>Hollinshed's</i> Chronicon, 1557, there is a bitter
+ complaint that, a short time previous, so many chimneys had been erected
+ in England, that so many earthen and tin dishes had been introduced in the
+ place of wooden ones. Another author finds fault that oak was then used in
+ building instead of willow, and adds that formerly the men were of oak but
+ now of willow. <i>Slaney</i>, On rural Expenditure, 41. Compare
+ <i>Xenoph.</i>, Cyrop., VIII, 8, 17.</p>
+
+ <p class="footnote"> <a name="footnote_224-2" id="footnote_224-2"></a>
+ <a href="#fnanchor_224-2">[224-2]</a>
+ Biblically determined: <i>Romans</i>, 13, 14.</p>
+
+ <p class="footnote"> <a name="footnote_224-3" id="footnote_224-3"></a>
+ <a href="#fnanchor_224-3">[224-3]</a>
+ <i>Plutarch</i>, De Gloria Athen., 348. <i>Athen.</i>, XIV, 623. Petit.
+ Legg. Att., 385.</p>
+
+ <p class="footnote"> <a name="footnote_224-4" id="footnote_224-4"></a>
+ <a href="#fnanchor_224-4">[224-4]</a>
+ <i>Livy</i>, XXXIV, 6 ff.</p>
+
+ <p class="footnote"> <a name="footnote_224-5" id="footnote_224-5"></a>
+ <a href="#fnanchor_224-5">[224-5]</a>
+ Most writers who have treated of luxury at all have generally confined
+ themselves to inquiring whether it was salutary or reprehensible.
+ Aristippus and Antisthenes, Diogenes, etc.; Epicureans and Stoics. The
+ latter were reproached with being bad citizens, because their moderation
+ in all things was a hindrance to trade. (<i>Athen.</i>, IV, 163.) The
+ Aristotelian <i>Herakleides</i> declared luxury to be the principal means
+ to inspire men with noble-mindedness; inspired by luxury, the Athenians
+ conquered at Marathon. (<i>Athen.</i>, XII, 512.) <i>Pliny</i> was one of
+ the most violent opponents of luxury. See <i>Pliny</i>, N. N., XXXIII, 1,
+ 4, 13, and other places. The controversy has been renewed by the moderns,
+ especially since the beginning of the 18th century, after luxury of every
+ kind had previously (for the most part on theological grounds, but also by
+ Hutten, for instance) been one-sidedly condemned. Among its defenders were
+ <i>Mandeville</i>, The Fable of the Bees, 1706, who, however, calls
+ everything a luxury which exceeds the baldest necessities of life;
+ <i>Voltaire</i> in Le Mondain, the Apologie du Luxe, and Sur L'Usage de la
+ Vie; <i>Mélon</i>, Essai politique sur le Commerce, ch. 9; <i>Hume</i>,
+ Discourses, No. 2, On Refinement in the Arts; <i>Dumont</i>, Théorie du
+ Luxe, 1771; <i>Filangieri</i>, Delle Leggi politiche ed economiche, II,
+ 37; and the majority of the Mercantile school and of the Physiocrates.
+ Among the opponents of luxury, <i>J. J. Rousseau</i> towers over almost
+ all others. Further, <i>Fénélon</i>, Télémaque, 1699, L. XXII;
+ <i>Pinto</i>, Essai sur le Luxe, 1762.</p>
+
+ <p class="footnote">The reasons and counter-reasons advanced by those
+ writers apply not only to luxury but to the lights and shades of high
+ civilization in general. When a political economist declares for or
+ against luxury in general, he resembles a doctor who should declare for or
+ against the nerves in general. There has been luxury in every country and
+ in every age. Among a healthy people, luxury is also healthy, an essential
+ element in the general health of the nation. Among an unhealthy people
+ luxury is a disease, and disease-engendering.</p>
+
+ <p class="footnote">For an impartial examination of the question, see
+ <i>Ferguson</i>, History of Civil Society, towards the end; see also
+ <i>Beckmann</i>, in <i>Justis'</i> Grundsätzen der Polizei, 1782, § 308;
+ <i>Rau</i>, Ueber den Luxus, 1817; <i>Roscher</i>, Ueber den Luxus, in the
+ Archiv der Politischen Oekonomie, 1843, and in his Ansichten der
+ Volkswirthschaft, 1861, 399 ff.</p>
+
+<p class="p2 center"><a name="S225"></a>SECTION CCXXV.<span
+class='pagenum'>[Pg 223]</span></p>
+
+<p class="center smaller">THE HISTORY OF LUXURY.&mdash;IN THE MIDDLE
+AGES.</p>
+
+<p>During the middle ages, industry and commerce had made as yet but little
+progress. Hence it was as difficult then for luxury to be ministered to by
+fine furniture as by the products of foreign countries. Individual
+ornamental pieces, especially arms and drinking cups,<a
+name="fnanchor_225-1" id="fnanchor_225-1"></a><a href="#footnote_225-1"
+class="fnanchor">[225-1]</a> were wont to be the only articles of <span
+class='pagenum'>[Pg 224]</span> luxury. We have inventories of the domains
+of Charlemagne from which we find that in one of them, the only articles of
+linen owned were two bed-sheets, a table-cloth and a pocket handkerchief.<a
+name="fnanchor_225-2" id="fnanchor_225-2"></a><a href="#footnote_225-2"
+class="fnanchor">[225-2]</a> Fashion is here very constant; because
+clothing was comparatively dearer than at present. And so now in the East.
+In the matter of dwellings, too, more regard was had to size and
+durability, than to elegance and convenience. The palaces of Alfred the
+Great were so frailly built that the walls had to be covered with curtains
+as a protection against the wind, and the lights to be inclosed in
+lanterns.<a name="fnanchor_225-3" id="fnanchor_225-3"></a><a href=
+"#footnote_225-3" class="fnanchor">[225-3]</a></p>
+
+<p>Hence the disposition to use the products of the home soil as articles
+of luxury was all the greater, but more as to quantity than to quality.<a
+name="fnanchor_225-4" id= "fnanchor_225-4"></a><a href= "#footnote_225-4"
+class="fnanchor">[225-4]</a> Since the knight could personally neither eat
+nor drink a quantity beyond the capacity of his own stomach, he kept a
+numerous suite to consume his surplus. It is well known what a great part
+was played among the ancient Germans by their retinues of devoted servants
+(<i>comitatus</i>), which many modern writers have looked upon as
+constituting the real kernel of the migration of nations.</p>
+
+<p>In England, it was a maxim of state policy with Henry VII., whose reign
+there terminated the middle age, to prohibit the <span class='pagenum'>[Pg
+225]</span> great liveried suites of the nobility (19 Henry VII., ch. 14)
+as Richard II., Henry IV. and Edward IV. had already attempted to do. But
+even under James I., we find ambassadors accompanied by a suite of 500
+persons or 300 noblemen.<a name="fnanchor_225-5" id="fnanchor_225-5"></a><a
+href="#footnote_225-5" class="fnanchor">[225-5]</a></p>
+
+<p>The rich man welcomed every opportunity which enabled him to make others
+share in a dazzling manner the magnitude of his superfluous wealth: hence
+the numberless guests at weddings who were frequently entertained for
+weeks.<a name="fnanchor_225-6" id="fnanchor_225-6"></a><a href=
+"#footnote_225-6" class="fnanchor">[225-6]</a> These festivities are
+memorable not because of the delicacies or great variety of the dishes, but
+because of their colossal magnitude. Even William of Orange, 1561,
+entertained at his wedding guests who had brought with them 5,647 horses;
+and he appeared himself with a suite of 1,100 men on horseback. There were
+consumed on the occasion 4,000 bushels of wheat, 8,000 of rye, 11,300 of
+oats, 3,600 <i>eimers</i> of wine, 1,600 barrels of beer.<a name=
+"fnanchor_225-7" id="fnanchor_225-7"></a><a href="#footnote_225-7"
+class="fnanchor">[225-7]</a> In the ordinance of Münden regulating <span
+class='pagenum'>[Pg 226]</span> weddings, promulgated in the year 1610, it
+is provided, that, at a large wedding there should not be over 24 tables,
+nor at a small one over 14, with 10 persons at each table.<a
+name="fnanchor_225-8" id="fnanchor_225-8"></a><a href="#footnote_225-8"
+class="fnanchor">[225-8]</a></p>
+
+<p>The hospitality of the lower stages of civilization<a name=
+"fnanchor_225-9" id= "fnanchor_225-9"></a><a href= "#footnote_225-9"
+class="fnanchor">[225-9]</a> must be ascribed as well to this peculiar kind
+of luxury as to mere good nature. Arabian chiefs have their noon-day table
+set in the street and welcome every passer-by to it.<a name=
+"fnanchor_225-10" id="fnanchor_225-10"></a><a href="#footnote_225-10"
+class="fnanchor">[225-10]</a> (<i>Pococke.</i>) And so, distinguished
+Indians keep an open cauldron on the fire cooking all the time, from which
+every person who comes in may help himself. (<i>Catlin.</i>)</p>
+
+<p>Compared with this luxury of the rich, the poverty found side by side
+with it appears less oppressive. There is no great gap between the modes of
+life of the different classes.<a name="fnanchor_225-11" id=
+"fnanchor_225-11"></a><a href="#footnote_225-11" class=
+"fnanchor">[225-11]</a> This is the golden age of aristocracy, when no one
+questions its legitimateness. When, later, the nobleman, instead of keeping
+so many servants, begins to buy costly garments for himself, he, indeed,
+supports indirectly just as many and even more men; but these owe him
+nothing. Besides, in this last kind of luxury, it is very easily possible
+for him to go beyond his means, which is scarcely ever the case in the
+former.<a name="fnanchor_225-12" id="fnanchor_225-12"></a><a href=
+"#footnote_225-12" class="fnanchor">[225-12]</a></p>
+
+ <p class="footnote"> <a name="footnote_225-1" id="footnote_225-1"></a>
+ <a href="#fnanchor_225-1">[225-1]</a>
+ Here, as a rule, the value of the metal was greater than the form-value;
+ and hence the medieval monasteries frequently made loans of silver
+ vessels, where of course, the form could not be taken into consideration.
+ On the other hand, in the case of the table service, presented by the king
+ of Portugal to Lord Wellington, the metal cost £85,000 and the workmanship
+ £86,000. (<i>Jacob</i>, Gesch. der edlen Metalle, translated by
+ Kleinschrod, II, 5.) Compare <i>Hume</i>, History of England, ch. 44, App.
+ 3. Similarly under Louis XIV. (<i>Sismondi</i>, Hist. des Français, XXVII,
+ 45.) When Rome was highly civilized, C. Gracchus paid for very good silver
+ ware, 15 times the value of the metal, and L. Crassus, (consul 95 before
+ Christ) 18 times its value. <i>Mommsen</i>, R. Gesch. II, 383.</p>
+
+ <p class="footnote"> <a name="footnote_225-2" id="footnote_225-2"></a>
+ <a href="#fnanchor_225-2">[225-2]</a>
+ <i>Specimen breviarii fiscalium Caroli Magni</i>; compare <i>Anton</i>,
+ Gesch. der deutschen Landwirthsch. 244 ff.</p>
+
+ <p class="footnote"> <a name="footnote_225-3" id="footnote_225-3"></a>
+ <a href="#fnanchor_225-3">[225-3]</a>
+ <i>Turner</i>, History of the Anglo Saxons, VII, ch. 6.</p>
+
+ <p class="footnote"> <a name="footnote_225-4" id="footnote_225-4"></a>
+ <a href="#fnanchor_225-4">[225-4]</a>
+ In <i>Homer</i>, the kings live on nothing but meat, bread and wine:
+ compare <i>Athen.</i>, I, 8. In the saga-poetry of Iceland, <i>H. Leo</i>
+ does not remember to have heard any other food mentioned except oat-pap,
+ milk, butter and cheese, fish, the flesh of domestic animals, and beer.
+ (<i>Raumer's</i> Taschenbuch, 1835, 491)</p>
+
+ <p class="footnote"> <a name="footnote_225-5" id="footnote_225-5"></a>
+ <a href="#fnanchor_225-5">[225-5]</a>
+ <i>Hume</i>, History of England, ch. 49, Append. Similarly among all
+ nations which have still preserved much of the medieval. Thus the duke of
+ Alba, about the end of the last century, had not a single commodious hall
+ in his immense palace, but 400 rooms for his servants, since at least all
+ his old servants, and even their widows and families, continued to live
+ with him. In Madrid alone, he paid £1,000 a month wages to his servants;
+ and the son of the duke, Medina-Celi, £4,000 per annum. (<i>Townsend</i>,
+ II, 155, 158.) In many palaces in Moscow, previous to 1812, there were
+ 1,000 and more servants, unskillful, clad for the most part as peasants,
+ badly fed, and with so little to do that perhaps one had no service to
+ perform but to fetch drinking water at noon, and another in the evening.
+ Even poor noblemen kept 20 and 30 servants, (<i>v. Haxthausen</i>,
+ Studien, I, 59.) <i>Forster</i>, Werke, VII, 347, explains Polish luxury
+ in servants, by the poorness of the servants there: a good German maid
+ could do more than three Polish servants. Thus, in Jamaica, it was
+ customary to exempt from the slave-tax persons who kept fewer than 7
+ negroes. (<i>B. Edwards</i>, History of the W. Indies, I, 229.) Compare
+ <i>Livy</i>, XXXIX, 11. The luxury of using torch-bearers instead of
+ candelabra lasted until Louis XIV.'s time. (<i>Rocquefort</i>, Hist. de la
+ Vie privée des Français, III, 171.) Compare <i>W. Scott</i>, Legend of
+ Montrose, ch. 4.</p>
+
+ <p class="footnote"> <a name="footnote_225-6" id="footnote_225-6"></a>
+ <a href="#fnanchor_225-6">[225-6]</a>
+ A Hungarian magnate, under king Sigismund, celebrated his son's wedding
+ for a whole year. (<i>Fessler</i>, Gesch. von Ungarn, IV, 1267.)</p>
+
+ <p class="footnote"> <a name="footnote_225-7" id="footnote_225-7"></a>
+ <a href="#fnanchor_225-7">[225-7]</a>
+ <i>Müller</i>, Annal. Saxon, 68. Several examples in <i>Sckweinichen's</i>
+ Leben von Büsching, I, 320 seq. <i>Krünitz</i>, Enclycopædie, Bd. 82, 84
+ ff. The wedding of the niece of Ottakar II. in 1264, has long been
+ considered a most brilliant event in the history of medieval luxury.
+ (<i>Palacky</i>, Gesch. von Böhmen, II, 191 ff.) Even yet, in Abyssinia,
+ on the occasion of royal feasts, only meat and bread are eaten and mead
+ drunk; but not only the great, but even common soldiers are entertained
+ one after the other. (Ausland, 1846, No. 79.) Magnificent as was the table
+ of a West Indian planter, it was in some respects very simple. A large ox
+ was slaughtered for the feast, and everything had to be prepared from
+ that: roast beef, beef steaks, beef pies, stews, etc. (<i>Pinckard</i>,
+ Notes on the W. Indies, II. 100 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_225-8" id="footnote_225-8"></a>
+ <a href="#fnanchor_225-8">[225-8]</a>
+ <i>Spittler</i>, Geschichte Hanovers, I, 381.</p>
+
+ <p class="footnote"> <a name="footnote_225-9" id="footnote_225-9"></a>
+ <a href="#fnanchor_225-9">[225-9]</a>
+ <i>Tacitus</i>, Germ., 21 Leg., says of the Germans: <i>Convictibus et
+ hospitiis non alia gens effusius indulget. Quemcunque mortalium arcere
+ tecto, nefas habetur. Diem noctemque continuare potando, nulli
+ probrum.</i></p>
+
+ <p class="footnote"> <a name="footnote_225-10" id="footnote_225-10"></a>
+ <a href="#fnanchor_225-10">[225-10]</a>
+ Entirely the same among the ancient Romans: <i>Valer. Max.</i>, II, 5.
+ Compare per <i>contra</i>, <i>Euripid.</i>, Herc. fur., 304 seq.</p>
+
+ <p class="footnote"> <a name="footnote_225-11" id="footnote_225-11"></a>
+ <a href="#fnanchor_225-11">[225-11]</a>
+ Think of nomadic races especially, where the rich can employ their wealth
+ only to increase the number of their partisans, for war purposes, etc.</p>
+
+ <p class="footnote"> <a name="footnote_225-12" id="footnote_225-12"></a>
+ <a href="#fnanchor_225-12">[225-12]</a>
+ <i>Ferguson</i>, Hist. of Civil Society, VI, 3; <i>Adam Smith</i>, Wealth
+ of Nat., IV, ch. 4. Compare <i>Contzen</i>, Politicorum, 1629, 662. As to
+ how in the lower stages of civilization, guests are used to supply the
+ place of the post-office service, see <i>Humboldt</i>, Relation hist., II,
+ 61.</p>
+
+<p class="p2 center"><a name="S226"></a>SECTION CCXXVI.<span
+class='pagenum'>[Pg 227]</span></p>
+
+<p class="center smaller">LUXURY IN BARBAROUS TIMES.</p>
+
+<p>The luxury of that uncivilized age shows itself for the most part on
+particular occasions, and then all the more ostentatious, while in the
+periods following it, it rather permeates the whole of life. Even J. Möser
+excuses our forefathers for their mad celebration of their <i>kirmesses</i>
+and carnivals: <i>dulce est desipere in loco</i>, as Horace says, and that
+they sometimes carried it to the extent of drowning reason.<a name=
+"fnanchor_226-1" id="fnanchor_226-1"></a><a href="#footnote_226-1"
+class="fnanchor">[226-1]</a> Among ourselves, the common man drinks brandy
+every day; in Russia, seldom, but then, to the greatest excess.<a
+name="fnanchor_226-2" id="fnanchor_226-2"></a><a href="#footnote_226-2"
+class="fnanchor">[226-2]</a> The well known peculiarity of feudal castles,
+that, besides one enormous hall, they were wont to have very small and
+inconvenient rooms for every day life, is accounted for in part by the
+great importance to them of festal occasions, and in part by the cordiality
+of the life led in them, in which lord and servants constituted one family.
+Nothing can be more erroneous than to ascribe great temperance in general
+to people in a low stage of civilization. Their <span class='pagenum'>[Pg
+228]</span> simplicity is a consequence of their ignorance rather than of
+their self-control. When nomadic races have once tasted the cup of more
+delicate enjoyment, it is wont to hurry them to destruction.<a name=
+"fnanchor_226-3" id="fnanchor_226-3"></a><a href="#footnote_226-3" class=
+"fnanchor">[226-3]</a></p>
+
+ <p class="footnote"> <a name="footnote_226-1" id="footnote_226-1"></a>
+ <a href="#fnanchor_226-1">[226-1]</a>
+ <i>Möser</i>, Patr. Ph. IV, 7. On the feast of fools and the feast of
+ asses of the middle ages, compare <i>Dutillet</i>, Mémoire pour sevir à
+ l'Histoire de la Fête des Fous; <i>D. Sacchi</i>, Delle Feste popolari del
+ medio Evo. During the latter half of the 16th century, the first
+ Hannoverian minister received only 200 thalers salary and pieces of
+ clothing, while the wedding of a certain von Saldern cost 5,600 thalers.
+ (<i>Spittler</i>, Gesch. Hannovers, I, 333.)</p>
+
+ <p class="footnote"> <a name="footnote_226-2" id="footnote_226-2"></a>
+ <a href="#fnanchor_226-2">[226-2]</a>
+ <i>v. Haxthausen</i>, Studien, II, 450, 513. Thus, in 1631, of those who
+ had died suddenly, there were 957 who died of drunkenness.
+ (<i>Bernouilli</i>, Populationistik, 303.) According to <i>v.
+ Lengefeldt</i>, Russland im 19. Jahrh., 42, the number is now 1,474 to
+ 1,911 per annum. On Poland, see <i>Klebs</i>, Landeskulturgesetzgebung in
+ Posen, 78. When the South American Indians begin to drink, they do not
+ stop until they fall down senseless. (<i>Ulloa</i>, Noticias Americanas,
+ ch. 17.) The old Romans considered all barbarians to be drunkards.
+ (<i>Plato</i>, De Legg., I, 638.) In eating, also, uncivilized people are
+ extremely irregular. A Jackute or Tunguse consumes 40 pounds of meat;
+ three men devour a whole reindeer at a meal. (<i>Cochrane</i>, Fussreise,
+ 156.) One ate in 24 hours the back quarter of a large ox, or ½ a
+ <i>pud</i> of fat, and drank an equal quantity of melted butter.
+ (<i>Klemm</i>, Kulturgeschichte, III, 18.) Similarly among hunting races.
+ See <i>Klemm</i>, I, 243, 339; II, 13, 255. On the South Sea Islanders,
+ see <i>Hawkesworth</i>, III, 505; <i>Forster</i>, I, 255.</p>
+
+ <p class="footnote"> <a name="footnote_226-3" id="footnote_226-3"></a>
+ <a href="#fnanchor_226-3">[226-3]</a>
+ Rapid degeneration of almost all barbaric dynasties as soon as they have
+ subjugated civilized countries.</p>
+
+<p class="p2 center"><a name="S227"></a>SECTION CCXXVII.</p>
+
+<p class="center smaller">INFLUENCE OF THE CHURCH AND OF THE CITY.</p>
+
+<p>The change in this situation takes place first of all in the churches
+and in the cities. The Church has passed through almost every stage of
+development in advance of the State; and civilization, both in the good and
+bad sense of the term, has become general, and gradually acclimated in the
+rural districts, through the influence of the cities. In the Church, the
+earliest art endeavored to reach the beautiful. There, we first find music,
+painting, sculpture, foreign perfumes, incense and variegated garments.<a
+name="fnanchor_227-1" id="fnanchor_227-1"></a><a href="#footnote_227-1"
+class="fnanchor">[227-1]</a> In the cities, growing industry introduces a
+more attractive style of clothing and a more ornamental style of household
+furniture. Commerce, beginning to thrive, raises foreign commodities into
+wants,<a name="fnanchor_227-2" id="fnanchor_227-2"></a><a href=
+"#footnote_227-2" class="fnanchor">[227-2]</a> and thus the old luxury of
+feudal times is modified.<a name= "fnanchor_227-3" id=
+"fnanchor_227-3"></a><a href= "#footnote_227-3" class=
+"fnanchor">[227-3]</a> The large number of idle servants is diminished. All
+the more refined pleasures are extended downward to wider circles of the
+people. Instead <span class='pagenum'>[Pg 229]</span> of individual bards,
+rhapsodists, skalds and minnesingers, we have the beginnings of the
+theater, and instead of tournaments, the shooting matches.
+(<i>Freischiessen.</i>)</p>
+
+<p>But it is remarkable how much earlier here pomp and splendor are
+considered than convenience. The Spanish <i>romanceros</i> of the 12th
+century display wonderful splendor in their descriptions of the Cid, and
+the trousseau of his daughters. But, on the other hand, the wife of Charles
+VII. seems to have been the only French woman in the 15th century who had
+more than two linen chemises. Even in the 16th century, it frequently
+happened that a princess made a present to a prince of a single shirt. At
+this time the German middle class were wont to sleep naked.<a
+name="fnanchor_227-4" id="fnanchor_227-4"></a><a href="#footnote_227-4"
+class="fnanchor">[227-4]</a></p>
+
+<p>Even now, half-civilized nations look more to the outward appearance of
+commodities than to their intrinsic value. Thus, for instance, in Russia,
+we find large numbers of porcelain services extravagantly painted and
+gilded, awkward, the material of which is full of blisters; damaskeened
+knives, gilt sad-irons and candle-snuffers with landscapes engraved on
+them: but nothing fits into anything else; the angles are vicious, the
+hinges lame, and the whole soon goes to pieces. And so, among export
+merchants in Bremen, for instance, it is a rule, on all their wares
+intended for America, to put a label made of very beautiful paper, with
+their coat-of-arms or firm-name in real silver, and to do the packing in as
+elegant a manner as possible.<a name= "fnanchor_227-5" id=
+"fnanchor_227-5"></a><a href= "#footnote_227-5"
+class="fnanchor">[227-5]</a> Cloths intended for America are usually
+exceedingly light, destitute of solidity, but very well dressed. The <span
+class='pagenum'>[Pg 230]</span> cotton-printers who work for the African
+market prefer to employ false but cheap and dazzling colors.<a
+name="fnanchor_227-6" id="fnanchor_227-6"></a><a href="#footnote_227-6"
+class="fnanchor">[227-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_227-1" id="footnote_227-1"></a>
+ <a href="#fnanchor_227-1">[227-1]</a>
+ The use of window-glass in churches in England dates from 674, in private
+ houses from 1180. (<i>Anderson</i>, Origin of Commerce, s. a.) Even in
+ 1567, it was so rare that during the absence of the lords from their
+ country seats, the panes were taken out and stored for safe keeping.
+ (<i>Eden</i>, State of the Poor, I, 77.) As to how Scotland developed in
+ this respect still later, see <i>Buckle</i>, History of Civilization in
+ England, II, 172.</p>
+
+ <p class="footnote"> <a name="footnote_227-2" id="footnote_227-2"></a>
+ <a href="#fnanchor_227-2">[227-2]</a>
+ In our day, at the breakfast of a German of the middle class, may be found
+ East Indian coffee, Chinese tea, West Indian sugar, English cheese,
+ Spanish wine, and Russian caviar, without any surprising degree of luxury.
+ Compare <i>Gellius</i>, N. A., VII, 16.</p>
+
+ <p class="footnote"> <a name="footnote_227-3" id="footnote_227-3"></a>
+ <a href="#fnanchor_227-3">[227-3]</a>
+ In England, the transition is noticeable, especially under Elizabeth:
+ <i>Hume</i> History, ch. 44, app. 3. In France, under Louis XIV.;
+ <i>Voltaire</i>, Siècle de Louis, XIV., ch. 29.</p>
+
+ <p class="footnote"> <a name="footnote_227-4" id="footnote_227-4"></a>
+ <a href="#fnanchor_227-4">[227-4]</a>
+ Poesias Castellanas anteriores al Siglo XV; Tom. I, 347, 327.
+ <i>Roscher</i>, loc. cit. <i>J. Voight</i>, in <i>Raumer's</i>
+ historischem Taschenbuche, 1831, 290; 1835, 324, seq. Thus, one of Henry
+ VIII's wives, in order to get salad, had first to send for a gardener from
+ Flanders; while at the time, a single ship imported into England from
+ 3,000 to 4,000 pieces of clothing in gold brocade, satin or silk.
+ (<i>Anderson</i>, a. 1509, 1524, 4; Henry VIII, c. 6.)</p>
+
+ <p class="footnote"> <a name="footnote_227-5" id="footnote_227-5"></a>
+ <a href="#fnanchor_227-5">[227-5]</a>
+ Irish linen, worth from 30 to 35 shillings, is often provided with a label
+ which cost 5 shillings. (<i>Kotelmann</i>, Statistische Uebersicht der
+ landwirthschaftl. und industriellen Verhältnisse von Oestereich und dem
+ Zollverein, 215.)</p>
+
+ <p class="footnote"> <a name="footnote_227-6" id="footnote_227-6"></a>
+ <a href="#fnanchor_227-6">[227-6]</a>
+ Compare <i>Kohl</i>, Reise in Deutschland, II, 18, 250. <i>Roscher</i>, in
+ the Göttinger Studien, 1845, II, 403, ff. About 1777, <i>Büsch</i>
+ described the difference of goods manufactured in England "for the
+ continent and home consumption," as being just the same as the difference
+ now between goods for Africa and goods for Europe. (Darstellung der
+ Handlung, Zusatz, 89.)</p>
+
+<p class="p2 center"><a name="S228"></a>SECTION CCXXVIII.</p>
+
+<p class="center smaller">HISTORY OF LUXURY IN HIGHLY CIVILIZED TIMES.</p>
+
+<p>The direction which luxury takes in times when civilization is advanced,
+is towards the real, healthy and tasteful enjoyment of life, rather than an
+inconvenient display. This tendency is exceedingly well expressed by the
+English word <i>comfort</i>, and it is in modern England that the luxury of
+the second period has found it happiest development. It is found side by
+side with frugality; and it frequently even looks like a return to the
+unaffected love of nature.<a name= "fnanchor_228-1" id=
+"fnanchor_228-1"></a><a href= "#footnote_228-1" class=
+"fnanchor">[228-1]</a></p>
+
+<p>Thus, since Rousseau's time,<a name= "fnanchor_228-2" id=
+"fnanchor_228-2"></a><a href= "#footnote_228-2" class=
+"fnanchor">[228-2]</a> the so-called English gardens have dropped the
+former Versailles-Harlem style. Thus, too, modern fashion despises the
+awkward long wig, powdering etc.<a name= "fnanchor_228-3"
+id="fnanchor_228-3"></a><a href="#footnote_228-3"
+class="fnanchor">[228-3]</a> Instead of garments embroidered, or faced with
+fur or lace, and instead of the galloon hat worn under Louis XIV. and Louis
+XV., the French revolution has introduced the simple citizen frock-coat and
+the round silk hat. The "exquisite" may even with these outshine others by
+the form he selects, the material he wears, or by frequent change, but
+<span class='pagenum'>[Pg 231]</span> much less strikingly than before.<a
+name="fnanchor_228-4" id="fnanchor_228-4"></a><a href="#footnote_228-4"
+class="fnanchor">[228-4]</a> Since every one, in the purchase of household
+furniture, etc., looks more to its use than to the honor of being sole
+possessor of an article or having something in advance of everybody else,
+it becomes possible for industry to manufacture its products in much larger
+quantities, and after the same model, and thus to furnish a much better
+article for the same price.<a name= "fnanchor_228-5" id=
+"fnanchor_228-5"></a><a href= "#footnote_228-5" class=
+"fnanchor">[228-5]</a> Besides, more recent industry has produced a
+multitude of cheap substitutes for costly objects of luxury: plated
+silver-leafing, cotton-velvet goods, etc.;<a name= "fnanchor_228-6"
+id="fnanchor_228-6"></a><a href="#footnote_228-6"
+class="fnanchor">[228-6]</a> besides the many steel engravings, lithographs
+etc., which have exerted so beneficent an influence on æsthetic
+education.</p>
+
+<p>In the England of our days, the houses are comparatively small, but
+convenient and attractive, and the salutary luxury of spending the pleasant
+season in the country very general.<a name="fnanchor_228-7" id=
+"fnanchor_228-7"></a><a href="#footnote_228-7" class="fnanchor">[228-7]</a>
+The country-roads are narrow but kept in excellent order and provided with
+good inns.<a name="fnanchor_228-8" id="fnanchor_228-8"></a><a
+href="#footnote_228-8" class="fnanchor">[228-8]</a> More value is here
+attached to fine linen cloth than to lace;<a name="fnanchor_228-9"
+id="fnanchor_228-9"></a><a href="#footnote_228-9" class=
+"fnanchor">[228-9]</a> to a few but nourishing meat-dishes <span
+class='pagenum'>[Pg 232]</span> than to any number of sauces and
+confections of continental kitchens.<a name="fnanchor_228-10"
+id="fnanchor_228-10"></a><a href="#footnote_228-10" class=
+"fnanchor">[228-10]</a> Especially is the luxury of cleanliness, with its
+morally and intellectually beneficial results found only in well-to-do and
+highly cultured nations. As formerly in Holland, so now in England, it is
+carried to the highest point of development. In the latter country, the tax
+on soap is considered a tax on an indispensable article.<a name=
+"fnanchor_228-11" id="fnanchor_228-11"></a><a href="#footnote_228-11"
+class="fnanchor">[228-11]</a> The reverse is the case in North America, if
+we can believe the most unprejudiced and friendly observers.<a
+name="fnanchor_228-12" id="fnanchor_228-12"></a><a href="#footnote_228-12"
+class="fnanchor">[228-12]</a> The person who lives in a log-house must, to
+feel at ease within his four walls, first satisfy a number of necessary
+wants.<a name="fnanchor_228-13" id="fnanchor_228-13"></a><a href=
+"#footnote_228-13" class="fnanchor">[228-13]</a></p>
+
+ <p class="footnote"> <a name="footnote_228-1" id="footnote_228-1"></a>
+ <a href="#fnanchor_228-1">[228-1]</a>
+ The reformation of the sixteenth century had a remarkable tendency towards
+ natural and manful fashions, as contradistinguished from the immediately
+ preceding and the immediately following periods. Compare <i>J. Falke</i>,
+ Deutsche Trachten und Modenwelt, II, 1858.</p>
+
+ <p class="footnote"> <a name="footnote_228-2" id="footnote_228-2"></a>
+ <a href="#fnanchor_228-2">[228-2]</a>
+ <i>J. J. Rousseau</i>, N. Héloise, II, L. 11. Compare <i>Keysler</i>, Reise, I, 695.</p>
+
+ <p class="footnote"> <a name="footnote_228-3" id="footnote_228-3"></a>
+ <a href="#fnanchor_228-3">[228-3]</a>
+ That a similar transition marked an epoch in the history of Grecian morals
+ was recognized even by <i>Thucydides</i>, I, 6; compare <i>Asios</i>, in
+ <i>Athen.</i>, XII, 528.</p>
+
+ <p class="footnote"> <a name="footnote_228-4" id="footnote_228-4"></a>
+ <a href="#fnanchor_228-4">[228-4]</a>
+ It will always remain a want to own clothes for every day wear and festal
+ occasions. The frock coat satisfies this want in the cheapest way. As soon
+ as people cease to distinguish clothing for festal occasions by the cut,
+ gold-embroidery, fur-facing, etc. will appear again, which would
+ necessarily prove a great hardship to the propertyless classes of the
+ educated, and even to the higher classes.</p>
+
+ <p class="footnote"> <a name="footnote_228-5" id="footnote_228-5"></a>
+ <a href="#fnanchor_228-5">[228-5]</a>
+ On the striking contrast presented in this respect by the English and
+ French, and even Russian customs, see <i>Storch</i>, Handbuch, II, 179 ff.
+ <i>J. B. Say</i>, Cours pratique, translated into German by
+ <i>Morstadt</i>, I, 435 ff.; Deutsche Vierteljahrsschrift, 1853, I,
+ 182.</p>
+
+ <p class="footnote"> <a name="footnote_228-6" id="footnote_228-6"></a>
+ <a href="#fnanchor_228-6">[228-6]</a>
+ Paper-hangings, instead of costly gobelins and leather hangings, were not
+ known in France until after 1760, nor in the rest of Europe until much
+ later. Busts of plaster were (<i>Martial</i>, IX, 17, and <i>Juvenal</i>,
+ II, 4) usual among those who were less well off.</p>
+
+ <p class="footnote"> <a name="footnote_228-7" id="footnote_228-7"></a>
+ <a href="#fnanchor_228-7">[228-7]</a>
+ Similarly even in <i>Giov. Villani</i>, XI, 93, the villas of the highly
+ cultured Florentines appear finer than their city houses, while in
+ Germany, at that time, even the richest citizens lived only in the
+ city.</p>
+
+ <p class="footnote"> <a name="footnote_228-8" id="footnote_228-8"></a>
+ <a href="#fnanchor_228-8">[228-8]</a>
+ Sidewalks in the cities, recommended by <i>J. J. Rousseau</i>, as a
+ popular convenience and as a safeguard against the
+ carriage-aristocracy.</p>
+
+ <p class="footnote"> <a name="footnote_228-9" id="footnote_228-9"></a>
+ <a href="#fnanchor_228-9">[228-9]</a>
+ In France, the luxury of lace was conquered by Marie Antoinette, but still
+ more effectually by the Revolution. Previous to that time, many Parisians
+ wore four manchettes to each shirt. (<i>Palliser</i>, History of Lace,
+ 1865.)</p>
+
+ <p class="footnote"> <a name="footnote_228-10" id="footnote_228-10"></a>
+ <a href="#fnanchor_228-10">[228-10]</a>
+ During the middle ages, strongly seasoned food, ragouts, etc., were more
+ in favor than in even France to-day; compare <i>Legrand d'Aussy et
+ Roquefort</i>, Histoire de la Vie priveé des Français, passim. The wine
+ even, at that time, used to be mixed with roots: <i>vin de romarin</i>,
+ <i>clairet</i>, <i>hippocras</i>, (<i>W. Wackernagel</i>, Kl. Schriften I,
+ 86, 7.) The French kitchen became simpler and more natural, only after the
+ middle of the 18th century. (<i>Roquefort</i>, III, 343.)</p>
+
+ <p class="footnote"> <a name="footnote_228-11" id="footnote_228-11"></a>
+ <a href="#fnanchor_228-11">[228-11]</a>
+ The taxed consumption of soap amounted in England in 1801 to 4.84 and in
+ 1845, 9.65 pounds per capita. (<i>Porter</i>, Progress of the Nation, V,
+ 5, 579.) Soap-boiling in London dates from 1520 only. Before that time,
+ all white soap was obtained from the continent. (<i>Howell</i>,
+ Londinopolis, 208.) <i>Erasmus</i> charged that England, in his time, was
+ an exceedingly dirty country. The Italians, on the other hand, were at
+ that time greatly distinguished above northern people, especially the
+ Germans, by their cleanliness. (<i>Buckhardt</i>, Kultur der Renaissance,
+ 295.) The Vienna river-baths after 1870, <i>Nicolai</i>, Reise, III, 17,
+ mentions as something deserving special note. The Leipzig river-baths date
+ from 1774.</p>
+
+ <p class="footnote"> <a name="footnote_228-12" id="footnote_228-12"></a>
+ <a href="#fnanchor_228-12">[228-12]</a>
+ <i>Birkbeck</i>, Notes on America, 39. Even in New York, it is not very
+ long since there were no common sewers. Just as characteristic is the
+ uncleanliness of the South African <i>boers</i> (<i>Mauch</i>, in
+ <i>Petermann's</i> Mittheilungen, Ergänz-Heft, XXVII, 23), when compared
+ with the celebrated cleanliness of the old Dutch.</p>
+
+ <p class="footnote">Americans will certainly not agree with the "friendly
+ and unprejudiced" observers mentioned in the text; for no one acquainted
+ with genuine American home-life can deny that cleanliness is an American
+ characteristic. It is only justice to the author to say that the above
+ note (12), so far as it relates to America, appeared in the second edition
+ of his work, and probably in the first; and that he is not so much to be
+ blamed for it as the unfriendly and prejudiced, if not ignorant observers.
+ It may be said, however, that, from the use of the word "log-house," in
+ the context, the author does not intend to apply this remark to the older
+ settlements.&mdash;<span class="smcap">Translator.</span></p>
+
+ <p class="footnote"> <a name="footnote_228-13" id="footnote_228-13"></a>
+ <a href="#fnanchor_228-13">[228-13]</a>
+ The most frightful uncleanliness prevails among the inhabitants of polar
+ countries, who never bathe, because of the climate, avoid all ventilation,
+ and because of the leathern clothing which they smear with grease, etc.
+ The Tunguses consider the after-birth cooked or roasted as a great
+ delicacy. "Fathers and mothers wipe their children's<a name=
+ "fnanchor_TN51" id= "fnanchor_TN51"></a><a href= "#footnote_TN51" class=
+ "fnanchor">[TN 51]</a> noses with their mouth, and gulp the secretion
+ down." (<i>Georgi</i>, Beschreib. aller Nationen des russ. Reiches, I,
+ 287.) Among the Koruks, the suitor rinses his mouth with his sweetheart's
+ water. (loc. cit., I, 349, 353.) Compare <i>Klemm</i>, Kulturgeschichte,
+ III, 24, 57. In warmer climates, even less civilized nations are clean,
+ for instance in the East and South-Sea Islands, etc. All the more
+ surprising is the uncleanliness of the Hottentots and Bushmen, where the
+ natural color is observable only under the eyes, where the tears produced
+ by too much smoke has washed away the crust of dirt which, with this
+ exception, covers the whole body. (<i>Klemm</i>, Kulturgeschichte, 333.)
+ How long it takes for cleanliness to become a national trait, may be
+ inferred from the history of water-closets, when, for instance, their
+ introduction into every house during the 16th and even the 17th century,
+ had to be provided for by law in Paris. (<i>Beckmann</i>, Beiträge, II,
+ 358 ff.) The Göttingen statutes of 1342 had to expressly prohibit persons
+ to <i>merdare</i> in public wine-cellars where persons ate and drank
+ together. (<i>Spittler</i>, Gesch. Hannovers, I, 57.) Similarly in the
+ courts of the German princes. On the other hand, universality of
+ water-closets in England to-day.</p>
+
+ <p class="footnote">In ancient times, too, the uncleanliness of the
+ Spartans in body and clothing was very surprising to the Athenians:
+ <i>Xenoph.</i>, Resp. Laced., II, 4; <i>Plutarch</i>, Lycurg, 16.
+ <i>Just.</i>, Lac., 5. Still more that of many barbarians, for instance of
+ the Illyrians: <i>Stobaeus</i>, V, 51, 132; <i>Gaisf. Aelian.</i>, V, H.
+ IV, 1. The ancient Romans bathed only once a week (<i>Seneca</i>, Epist.,
+ 86), while under the Empire, "the baths embraced and filled up the whole
+ life of man and all his wishes." (<i>Gerlach.</i>) Compare <i>Becker</i>,
+ Gallus, II, 10 ff.; <i>Lamprid</i>, V, Comm., 11.</p>
+
+<p class="p2 center"><a name="S229"></a>SECTION CCXXIX.<span
+class='pagenum'>[Pg 233]</span></p>
+
+<p class="center smaller">EXTENT OF LUXURY IN HIGHLY CIVILIZED TIMES.</p>
+
+<p>The luxury of this second period fills the whole of life and permeates
+every class of people. Hence we may most easily determine the degree of
+development a people have attained by the quantity of commodities of a
+finer quality which are, indeed, not indispensable to life, but which it is
+desirable should be consumed on as extensive a scale as possible by the
+nation, for the sake of the fullness of life and the freshness<a
+name="fnanchor_229-1" id="fnanchor_229-1"></a><a href="#footnote_229-1"
+class="fnanchor">[229-1]</a> of life to which they minister.</p>
+
+<p><span class='pagenum'>[Pg 234]</span>Thus, for instance, as civilization
+has advanced, there has been almost everywhere a transition to a finer
+quality of the material of which bread is made. The number of consumers of
+white bread in France in 1700, was 33 per cent. of the population; in 1760,
+40; in 1764, 39; in 1791, 37; in 1811, 42; in 1818, 45; in 1839, 60 per
+cent.<a name="fnanchor_229-2" id="fnanchor_229-2"></a><a
+href= "#footnote_229-2" class="fnanchor">[229-2]</a> About 1758, in England
+and Wales, 3,750,000 of people lived on wheat bread; on barley bread,
+739,000; on rye bread, 888,000; on oat bread, 623,000. The cultured
+southeastern population had almost nothing but wheat bread, while in the
+north and northwest, oat bread continued to be used a long time; and in
+Wales only 10 per cent. of the population ate wheat bread. This condition
+of things in England has since been much improved. But, at the extremities
+of the Hebrides, nine-tenths of the population still live on barley bread;
+and in Ireland it was estimated, in 1838, that with 8,000,000 inhabitants,
+potatoes were the chief article of food of 5,000,000, and oat bread of
+2,500,000.<a name="fnanchor_229-3" id="fnanchor_229-3"></a><a href=
+"#footnote_229-3" class="fnanchor">[229-3]</a></p>
+
+<p><span class='pagenum'>[Pg 235]</span>And so, the consumption of meat in
+cities is uniformly much larger than in the country. In the cities of the
+Prussian monarchy and subject to the slaughter-house tax, it amounted in
+1846, per capita: in East Prussia, to 61 lbs.; in Pommerania, to 66; in
+Posen, to 70; in West Prussia, to 71; in Saxony, to 75; in the Rhine
+Province, to 83; in Silesia, to 86; in Brandenburg, to nearly 104; in
+Berlin alone, to 114: an average in the whole country, however, of scarcely
+40 lbs. per capita. (<i>Dietrici.</i>) In the kingdom of Saxony, the
+average consumption of beef and pork was, shortly before 1866, about 50
+lbs.; in Dresden alone, 86.7; in Leipzig, 136.9 lbs.<a name=
+"fnanchor_229-4" id="fnanchor_229-4"></a><a href="#footnote_229-4"
+class="fnanchor">[229-4]</a> The consumption of meat in England is
+exceedingly great, so that, for instance, in several orphan asylums in
+London, the daily meat ration amounts to an average of from 0.23 to 0.438
+lbs. The meat-consumption of a well-to-do family, children and servants
+included, Porter estimates at 370 lbs. per capita per annum. The meat
+ration of soldiers in the field amounts in England to 676 grammes a day; in
+France, to 350.<a name="fnanchor_229-5" id="fnanchor_229-5"></a><a
+href="#footnote_229-5" class="fnanchor">[229-5]</a></p>
+
+<p><span class='pagenum'>[Pg 236]</span>The consumption of sugar in 1734,
+in England, was about 10 lbs. per capita; in 1845, in the whole of the
+British Empire, 20-1/3 lbs.; in 1849, almost 25 lbs.; in 1865, over 34
+lbs.; but it must not be overlooked here, that in Ireland the consumption
+of sugar per capita was scarcely over 8 lbs.<a name="fnanchor_229-6"
+id="fnanchor_229-6"></a><a href="#footnote_229-6" class=
+"fnanchor">[229-6]</a> In the German Zollverein, the consumption of sugar,
+in 1834, amounted to an average of 2½ lbs. per capita; in 1865, to more
+than 9 lbs. In France, the consumption of the same article rose from 1.33
+kilogrammes, the average from 1817 to 1821, to 7.35 lbs. in 1865.<a
+name="fnanchor_229-7" id="fnanchor_229-7"></a><a href="#footnote_229-7"
+class="fnanchor">[229-7]</a> The population of the Zollverein rose 25.8 per
+cent. between 1834 and 1847, while the importation of coffee increased
+117.5 per cent.; of spices, 58.2; southern fruits, 34.5, and cocoa, 246.2
+per cent.<a name="fnanchor_229-8" id="fnanchor_229-8"></a><a
+href="#footnote_229-8" class="fnanchor">[229-8]</a></p>
+
+<p>A great many of vegetables and fruits, which seem to us to be almost
+indispensable articles of subsistence, have been cultivated <span
+class='pagenum'>[Pg 237]</span> only a short time. Thus the English have
+been acquainted with artichokes, asparagus, several kinds of beans, salad,
+etc. only since 1660.<a name="fnanchor_229-9" id="fnanchor_229-9"></a><a
+href="#footnote_229-9" class="fnanchor">[229-9]</a> Even in France, the
+finer kinds of fruits have appeared on the tables of the middle class only
+since the beginning of the last century.</p>
+
+<p>The per capita consumption of wool in England, about a generation ago,
+amounted to about 4 lbs. a year; in Prussia to 1.67; of cloth, to 5.76 and
+2.17 ells; of leather, to 3.03 and 2.22 lbs. respectively.<a
+name="fnanchor_229-10" id="fnanchor_229-10"></a><a href="#footnote_229-10"
+class="fnanchor">[229-10]</a> Of silk goods, England consumes half as much
+as the rest of all Europe, and an Englishman from 5 to 6 times as much as a
+Frenchman, although England does not produce a single pound of raw silk.<a
+name="fnanchor_229-11" id="fnanchor_229-11"></a><a href="#footnote_229-11"
+class="fnanchor">[229-11]</a></p>
+
+ <p class="footnote"> <a name="footnote_229-1" id="footnote_229-1"></a>
+ <a href="#fnanchor_229-1">[229-1]</a>
+ Thus, for instance, the modern enjoyments of coffee, tea, newspapers,
+ tobacco etc., promote domesticity with which antiquity was so little
+ acquainted. <i>Zaccharia</i>, Vierzig Bücher, VI, 60.</p>
+
+ <p class="footnote"> <a name="footnote_229-2" id="footnote_229-2"></a>
+ <a href="#fnanchor_229-2">[229-2]</a>
+ The food of the French people has improved also in point of quantity. At
+ the beginning of the eighteenth century, of cereals there were 472 liters
+ per capita, at present there are 541 liters; and in addition, now, 240
+ liters of potatoes and vegetables more than then. Compare <i>Moreau de
+ Joannès</i>, Statistique de l'Agriculture de la France, 1848, and the same
+ writer's Statistique céréale de la France, in the Journal des Economistes,
+ 1842, Janv. On the recent decrease or increase in the consumption of meat,
+ see the very different estimates of <i>M. Chevalier</i>, Cours., I, 113
+ seq., and Journal des Economistes, Mars, 1856, 438 ff.</p>
+
+ <p class="footnote"> <a name="footnote_229-3" id="footnote_229-3"></a>
+ <a href="#fnanchor_229-3">[229-3]</a>
+ <i>Ch. Smith</i>, Tracts on the Corn Trade, 1758, 182. <i>Eden</i>, State
+ of the Poor, I, 563, seq. In <i>McCulloch</i>, Statist, I, 316, 466 ff.,
+ 548. Moreover, <i>Rogers</i> says that English workmen in the middle ages,
+ for the most part, consumed wheat bread. (Statist. Journal, 1864, 73.)
+ About the middle of the 13th century, only from 11 to 12 <i>malters</i> of
+ wheat were produced on the estates of the bishop of Osnabrück; about 470
+ of oats, 300 of rye, and 120 of barley. (<i>J. Möser</i>, Osnabrück,
+ Gesch., Werke, VII, 2. 166.) Even beer was brewed from oats in the earlier
+ part of the middle ages. (<i>Guérard</i>, Polyptiques, I, 710 ff.) The
+ ancients, also, in their lower stages of civilization, lived on barley
+ bread by way of preference, and went over to wheat only at a later period;
+ compare <i>Plin.</i>, H. N. XVIII, 14. <i>Heracl.</i>, Pont, fr. 2.
+ <i>Athen.</i>, IV., 137, 141. <i>Plutarch</i>, Alcib., 23. As to how, in
+ Rome, the transition from <i>far</i> to the much more costly
+ <i>triticum</i>, was connected with the extension of the hide of land from
+ 2 to 7 <i>jugera</i>, see <i>M. Voigt</i> in the Rhein. Museum f. Philol.,
+ 1868.</p>
+
+ <p class="footnote"> <a name="footnote_229-4" id="footnote_229-4"></a>
+ <a href="#fnanchor_229-4">[229-4]</a>
+ To this, in Saxony, must be added about from 6 to 7 pounds of veal and
+ mutton. The recent increase in the consumption of meat in Saxony is very
+ encouraging: 1840, about 30 lbs. of beef and pork per capita; 1851-57, 40
+ lbs. (Sächs. Statist. Ztschr., 1867, 143 seq.) On the other hand,
+ <i>Schmoller</i> estimated the consumption of meat in general in Prussia,
+ in 1802, at 33.8; in 1816, at 22.5; in 1840, at 34.6; in 1867, at 34.9
+ lbs. (<i>Fühling</i>, N. Landw. Zeitg., XIX; Jahrg. Heft., 9 seq.) Paris
+ consumed, in 1850, 145 pounds of butcher's meat per capita; in 1869, 194
+ pounds. In the year of the revolution, 1848, the consumption declined 45
+ per cent.; the consumption of wine in barrels, 16 per cent.; in bottles,
+ 44 per cent.; of sea-fish, 25 per cent.; of oysters, 24 per cent.; of
+ beer, 20 per cent.; of eggs, 19 per cent.; of butter, 13 per cent.; of
+ fowl, 6 per cent. (<i>Cl. Juglar</i>, in the Journal des Economistes,
+ March, 1870.)</p>
+
+ <p class="footnote"> <a name="footnote_229-5" id="footnote_229-5"></a>
+ <a href="#fnanchor_229-5">[229-5]</a>
+ <i>Porter</i>, Progress of the Nation, V, 5, 591 ff.; <i>Hildesheim</i>,
+ Normaldiet, 52 ff. Well-known English popular song: "Oh, the roast beef of
+ old England" etc. Even at the end of the 17th century one-half of the
+ nation partook of fresh meat scarcely once or twice a week; most of that
+ consumed was salted. (<i>Macaulay</i>, History of England, ch. 3.) But
+ even <i>Boisguillebert</i>, Traité des Grains, II, 7, characterizes the
+ English as great beer-drinkers and meat-eaters, from the highest class to
+ the lowest, while the French consumed almost nothing but bread. Similarly
+ <i>J. J. Becher</i>, Physiologie, 1678, 202, 248, on the great consumption
+ of meat and sugar in England.</p>
+
+ <p class="footnote"> <a name="footnote_229-6" id="footnote_229-6"></a>
+ <a href="#fnanchor_229-6">[229-6]</a>
+ <i>Anderson</i>, Origin of Commerce, a. 1743; <i>Porter</i>, Progress, V,
+ 4, 350 ff.; Meidinger, 154 ff.; Memorandum respecting British Commerce,
+ etc., before and since the Adoption of Free Trade, 1866. On men-of-war
+ each man gets 35-45 lbs. a year; in the poorhouse, old men 22¾.
+ (<i>Porter.</i>)</p>
+
+ <p class="footnote"> <a name="footnote_229-7" id="footnote_229-7"></a>
+ <a href="#fnanchor_229-7">[229-7]</a>
+ In Henry IV.'s time, in France, sugar was sold by the apothecaries by the
+ ounce!</p>
+
+ <p class="footnote"> <a name="footnote_229-8" id="footnote_229-8"></a>
+ <a href="#fnanchor_229-8">[229-8]</a>
+ <i>Deiterici</i>, Statist. Uebersicht des Verkehrs, etc. im Zollvereine, 4;
+ Fortsetzung, 168 ff., 208, 265, 599. Thus, in Great Britain, the
+ population between 1816 and 1828 grew, from 13½ million to nearly 16
+ million. On the other hand, consumption, when the average from 1816 to
+ 1819 is compared with that from 1824 to 1828, increased in a much greater
+ proportion: soap, from 67¾ to 100 million pounds; coffee, from 7,850,000
+ to 12,540,000 pounds; starch, from 3-1/5 to 6-1/3 million pounds. (Quart.
+ Rev., Nov., 1829, 518.) The consumption of tea per capita in 1801 was 1.5
+ lbs., in 1871, 3.93 lbs. (Statist. Journ., 1872, 243.) In the matter of
+ illumination, a very beneficent luxury has been obtained, inasmuch as,
+ spite of the fact that gas-light is so generally used in recent times, i.
+ e., since 1804, the consumption of oil has very much increased, on account
+ of the lamps now so much in favor; and that of candles also has increased,
+ relatively speaking, more rapidly than the population. The illumination
+ produced is much richer now than formerly, a fact which, besides its
+ sanitary advantages, has had a good influence in diminishing street
+ robberies. (<i>Julius</i>, Gefängnisskunde, XXII.) During the middle ages,
+ candles were very dear; according to <i>Rogers</i> (I, 415) 1-1/3 to 2
+ shillings per pound.</p>
+
+ <p class="footnote"> <a name="footnote_229-9" id="footnote_229-9"></a>
+ <a href="#fnanchor_229-9">[229-9]</a>
+ Present state of England, 1683, III, 529; compare <i>Storch</i>, Handbuch,
+ II, 337 seq.</p>
+
+ <p class="footnote"> <a name="footnote_229-10" id="footnote_229-10"></a>
+ <a href="#fnanchor_229-10">[229-10]</a>
+ <i>Dieterici</i>, Statist. Uebersicht, 321 ff., 363, 399.</p>
+
+ <p class="footnote"> <a name="footnote_229-11" id="footnote_229-11"></a>
+ <a href="#fnanchor_229-11">[229-11]</a>
+ <i>Bernouilli</i>, Technologie, II, 223. It is a striking symptom of the
+ wealth or ostentation of the later period of the Empire that, according to
+ <i>Ammian. Marcell</i>, (XXIII, 258-ed. Paris, 1636) silk goods were a
+ want even among the lower classes, notwithstanding the fact that they had
+ to be imported from China.</p>
+
+<p class="p2 center"><a name="S230"></a>SECTION CCXXX.</p>
+
+<p class="center smaller">EQUALIZING TENDENCY OF LATER LUXURY.</p>
+
+<p>The whole social character of this luxury has something equalizing<a
+name="fnanchor_230-1" id="fnanchor_230-1"></a><a href="#footnote_230-1"
+class="fnanchor">[230-1]</a> in it; but it supposes particularly that there
+is not too marked a difference in the resources of the people.</p>
+
+<p>A proper gradation of national wants is best guarantied by a good
+distribution of the national resources.<a name="fnanchor_230-2"
+id="fnanchor_230-2"></a><a href="#footnote_230-2" class=
+"fnanchor">[230-2]</a> The more unequal the latter is, the more is there
+spent on vain wants instead of on real ones; and the more numerous are the
+instances of rapid and even immoral consumption. Where there are only a few
+over-rich men, more foreign products and products <span class='pagenum'>[Pg
+238]</span> of capital are wont to be called for than home products and
+productions of labor; and luxury especially despises all those commodities
+manufactured in large institutions.<a name="fnanchor_230-3" id=
+"fnanchor_230-3"></a><a href="#footnote_230-3" class=
+"fnanchor">[230-3]</a> Every change in the consumption-customs of a people,
+in this respect, should be most carefully observed; thus, for instance,
+whether brandy is exchanged for beer, tobacco for meat, cotton for cloth,
+or the reverse.<a name="fnanchor_230-4" id="fnanchor_230-4"></a><a
+href="#footnote_230-4" class="fnanchor">[230-4]</a></p>
+
+<p>One of the characteristics of this period is the endeavor to possess the
+best quality of whatever is possessed at all, and to be satisfied with less
+of it rather than purchase more of an inferior quality. This is,
+essentially, to practice frugality, inasmuch as certain production-services
+remain the same whether the commodity is of the best or the worst quality,
+and that commodities of the best quality are more superior to the worst in
+intrinsic goodness than they are in price. But this course supposes a
+certain well-being already existing.</p>
+
+<p>In this period, also, the luxury of the state is wont to take the
+direction of those enjoyments which are accessible to all.<a
+name="fnanchor_230-5" id="fnanchor_230-5"></a><a href="#footnote_230-5"
+class="fnanchor">[230-5]</a></p>
+
+ <p class="footnote"> <a name="footnote_230-1" id="footnote_230-1"></a>
+ <a href="#fnanchor_230-1">[230-1]</a>
+ Formerly the dress of citizens was a weak imitation of the court costume:
+ at present the reverse is the case, and the court costume is only a
+ heightening of the citizen costume. Compare <i>Riehl</i>, Bürgerl.
+ Gesellschaft, 191.</p>
+
+ <p class="footnote"> <a name="footnote_230-2" id="footnote_230-2"></a>
+ <a href="#fnanchor_230-2">[230-2]</a>
+ <i>Helvetius</i>, De l'Homme, 1771. sec. VI, ch. 5.</p>
+
+ <p class="footnote"> <a name="footnote_230-3" id="footnote_230-3"></a>
+ <a href="#fnanchor_230-3">[230-3]</a>
+ <i>J. B. Say</i>, Traité, II, 4; <i>Sismondi</i>, N. P., IV, ch. 4. As
+ early a writer as <i>Lauderdale</i>, Inquiry, 358 ff., thought the social
+ leveling of modern times would promote English industry. In the East
+ Indies, on the other hand, only the most expensive watches, rifles,
+ candelabras<a name= "fnanchor_TN52" id= "fnanchor_TN52"></a><a href=
+ "#footnote_TN52" class= "fnanchor">[TN 52]</a> etc. were sold, because the
+ nabobs were the only persons who created any demand for European
+ commodities (312 ff.). <i>Adam Smith</i>, Wealth of Nat., II, ch. 3, draws
+ a very correct distinction between the luxury of durable goods and that of
+ those which perish rapidly; the former is less calculated to impoverish an
+ individual or a whole nation; and hence it is much more closely allied to
+ frugality. Similarly even <i>Isocrates</i>, ad Niccol., 19; <i>Livy</i>,
+ XXIV, 7; <i>Plin.</i>, H. N., XIII, 4; <i>Mariana</i>, 1598, De Rege et
+ Regis Institutione, III, 10; <i>Sir W. Temple</i>, Works, I, 140 seq., who
+ found this better kind of luxury in Holland: <i>Berkeley</i>, Querist, No.
+ 296 ff.</p>
+
+ <p class="footnote"> <a name="footnote_230-4" id="footnote_230-4"></a>
+ <a href="#fnanchor_230-4">[230-4]</a>
+ <i>Schmoller</i>, loc. cit., considers it no favorable symptom, that in
+ Prussia, between 1802 and 1867, the per capita consumption of milk
+ decreased and that of wool increased. According to <i>L. Levi</i>, the
+ consumption of brandy in England decreased from 1854 and 1870, from 1.13
+ to 1.01 gallons per capita; but, on the other hand, the consumption of
+ malt increased from 1.45 to 1.84 bushels, and the consumption of wine from
+ 0.23 to 0.45 gallons. The number of licenses to retail spirituous liquors
+ was, in 1830, 6.30 per thousand of the population; in 1860-69, only 5.57.
+ (Statist. Journal, 1872, 32 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_230-5" id="footnote_230-5"></a>
+ <a href="#fnanchor_230-5">[230-5]</a>
+ Compare <i>Cicero</i>, pro Murena, 36. The Athenians under Pericles, in
+ times of peace, spent more than one-third of their state-income on plastic
+ and architectural works of art. The annual state-income amounted to 1,000
+ talents (<i>Xenoph.</i>, Exp. Cyri, VII, 1, 27), while the propylea alone
+ cost, within 5 years, 2,012 talents. (<i>Böckh</i>, Staatsh., I, 283.) On
+ the other hand, <i>Demosthenes</i> complains of the shabbiness of public
+ buildings, and the magnificence of private ones in his time. (adv.
+ Aristocr., 689, Syntax., 174 seq.)</p>
+
+ <p class="footnote"><i>Demetrius Phalereus</i> blames even Pericles, on
+ account of his extravagance on the propylea, although Lycurgus had been,
+ not long before, addicted to luxury after the manner of Pericles.
+ (<i>Cicero</i>, De Off., II, 17.)</p>
+
+<p class="p2 center"><a name="S231"></a>SECTION CCXXXI.<span
+class='pagenum'>[Pg 239]</span></p>
+
+<p class="center smaller">THE ADVANTAGES OF LUXURY.</p>
+
+<p>The favorable results which many writers ascribe to luxury in general
+are true evidently only of this period. And thus luxury, inasmuch as it is
+a spur to emulation, promotes production in general; just as the awarding
+of prizes in a school, although they can be carried away only by a few,
+excites the activity of all its attendants. A nation which begins to
+consume sugar will, as a rule, unless it surrenders some previous
+enjoyment, increase its production.<a name="fnanchor_231-1" id=
+"fnanchor_231-1"></a><a href="#footnote_231-1" class="fnanchor">[231-1]</a>
+In countries where there is little or no legal security, in which,
+therefore, people must keep shy of making public the good condition they
+are in, this praise-worthy side of luxury is for the most part wanting.<a
+name="fnanchor_231-2" id="fnanchor_231-2"></a><a href="#footnote_231-2"
+class="fnanchor">[231-2]</a></p>
+
+<p>All rational luxury constitutes a species of reserve fund for <span
+class='pagenum'>[Pg 240]</span> a future day of need. This is especially
+true of these luxuries which take the form of capital in use
+(<i>Nutzkapitalien</i>.) Where it is customary for every peasant girl to
+wear a gold head-dress,<a name="fnanchor_231-3" id="fnanchor_231-3"></a><a
+href="#footnote_231-3" class="fnanchor">[231-3]</a> and every apprentice a
+medal, a penny for a rainy day is always laid by among the lower classes.
+The luxury which is rapidly consumed has a tendency in the same direction.
+Where the majority of the population live on potatoes, as in Ireland,
+where, therefore, they are reduced to the smallest allowance of the means
+of subsistence, there is no refuge in case of a bad harvest. A people on
+the other hand, who live on wheat bread may go over to rye bread, and a
+people who live on rye bread to potatoes. The corn that in good years is
+consumed in the making of brandy may, in bad years, be baked into bread.<a
+name="fnanchor_231-4" id="fnanchor_231-4"></a><a href="#footnote_231-4"
+class="fnanchor">[231-4]</a> And the oats consumed by horses kept as
+luxuries may serve as food for man. Pleasure-gardens (<i>Lustgärten</i>)
+may be considered as a kind of last resort for a whole people in case of
+want of land.<a name="fnanchor_231-5" id="fnanchor_231-5"></a><a
+href="#footnote_231-5" class="fnanchor">[231-5]</a> <a name=
+"fnanchor_231-6" id="fnanchor_231-6"></a><a href="#footnote_231-6" class=
+"fnanchor">[231-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_231-1" id="footnote_231-1"></a>
+ <a href="#fnanchor_231-1">[231-1]</a>
+ Compare <i>Benjamin Franklin's</i> charming story, Works I, 134 ff.; ed.
+ Robinson. <i>Colbert</i> recommended luxury chiefly on account<a name=
+ "fnanchor_TN53" id= "fnanchor_TN53"></a><a href= "#footnote_TN53" class=
+ "fnanchor">[TN 53]</a> of its service to production.</p>
+
+ <p class="footnote"> <a name="footnote_231-2" id="footnote_231-2"></a>
+ <a href="#fnanchor_231-2">[231-2]</a>
+ Turkish magnates who keep several magnificent equipages ride to the
+ sultan's in a very bad one. Risa Pascha, when at the height of his power,
+ had his house near a villa of the sultan painted in the plainest and most
+ unsightly manner possible. The walls of a park in Constantinople painted
+ half in red and half in blue, to give it the appearance of being two
+ <i>gardens</i>. (Alg. Zeitung, 16 Juli, 1849.) In Saxony, between 1847 and
+ 1850, the number of luxury horses diminished from 6.11 to 5.64 per cent.
+ of the total number of horses in the kingdom. (<i>Engel</i>, Jahrbuch, I,
+ 305.) In the same country there were coined in 1848 over 64,000 silver
+ marks, derived from other sources than the mines. (<i>Engel</i>, Statis.
+ Zeitschr. I, 85.) In England, on the other hand, the number of
+ four-wheeled carriages increased more than 60 per cent. between 1821 and
+ 1841, while the population increased only 30 per cent. (<i>Porter</i>,
+ Progress, V, 3, 540.)</p>
+
+ <p class="footnote"> <a name="footnote_231-3" id="footnote_231-3"></a>
+ <a href="#fnanchor_231-3">[231-3]</a>
+ Such a head-dress may very easily be worth 300 guldens in Friesland. Gold
+ crosses worn by the peasant women about Paris. (<i>Turgot</i>, Lettre sur
+ la Liberté du Commerce des Grains.)</p>
+
+ <p class="footnote"> <a name="footnote_231-4" id="footnote_231-4"></a>
+ <a href="#fnanchor_231-4">[231-4]</a>
+ So far it is of some significance, that nearly all not uncivilized nations
+ use their principal article of food to prepare drinks that are luxuries.
+ Thus, the Indians use rice, the Mexicans mais, the Africans the
+ ignam-root. It is said that in ancient Egypt, beer-brewing was introduced
+ by Osiris. (<i>Diodor.</i>, I, 34.) Compare <i>Jeremy Bentham</i>, Traité
+ de Législation, I, 160. <i>Malthus</i>, Principle of Population, I, ch.
+ 12; IV, ch. 11.</p>
+
+ <p class="footnote"> <a name="footnote_231-5" id="footnote_231-5"></a>
+ <a href="#fnanchor_231-5">[231-5]</a>
+ While in thinly populated North America, space permits the beautiful
+ luxury in cemeteries of ornamenting surroundings of each grave separately
+ (<i>Gr. Görtz</i>, Reise, 24), the Chinese garden-style seeks to effect a
+ saving in every respect. In keeping with this is the fact that animal food
+ has there been almost abolished. Compare, besides, <i>Verri</i>,
+ Meditazioni, XXVI, 3.</p>
+
+ <p class="footnote"> <a name="footnote_231-6" id="footnote_231-6"></a>
+ <a href="#fnanchor_231-6">[231-6]</a>
+ <i>Garve</i> thinks that luxury, when it takes the direction of a great
+ many trifles, little conveniences, etc., has the effect of distracting the
+ people. Here there are few men of towering ambition or of inextinguishable
+ revenge, but at the same time, few entirely unselfish and incorruptible
+ patriots. (<i>Versuche</i>, I, 232.)</p>
+
+<p class="p2 center"><a name="S232"></a>SECTION CCXXXII.<span
+class='pagenum'>[Pg 241]</span></p>
+
+<p class="center smaller">LUXURY IN DECLINING NATIONS.</p>
+
+<p>In declining nations, luxury assumes an imprudent and immoral character.
+Enormous sums are expended for insignificant enjoyments. It may even be
+said that costly consumption is carried on there for its own sake. The
+beautiful and the true enjoyment of life makes place for the monstrous and
+the effeminate.</p>
+
+<p>Rome, in the earlier part of the empire, affords us an example of such
+luxury on the most extensive scale.<a name="fnanchor_232-1" id=
+"fnanchor_232-1"></a><a href= "#footnote_232-1" class=
+"fnanchor">[232-1]</a> Nero paid three hundred talents for a murrhine vase.
+The two acres (<i>Morgen</i>) of land which sufficed to the ancient
+citizens for a farm (<i>Acker</i>) were not now enough to make a fish-pond
+for imperial slaves. The sums carried by the exiles with them, to cover
+their traveling expenses and to live on for a time, were now greater than
+the fortunes of the most distinguished citizens had been in former times.<a
+name="fnanchor_232-2" id= "fnanchor_232-2"></a><a href= "#footnote_232-2"
+class="fnanchor">[232-2]</a> There was such a struggle among the people to
+surpass one another in procuring the freshest sea-fish that, at last, they
+would taste only such as they had seen alive on the table. We have the most
+exalted descriptions of the beautiful changes of color undergone by the
+dying fish; and a special infusion was invented to enable the epicure
+better to enjoy the spectacle.<a name= "fnanchor_232-3" id=
+"fnanchor_232-3"></a><a href= "#footnote_232-3" class=
+"fnanchor">[232-3]</a> Of the transparent garments of his time, Seneca says
+that they neither protected the body nor covered the nakedness of nature.
+People kept herds of sheep dyed in purple, although their natural white
+must have been much more agreeable to <span class='pagenum'>[Pg 242]</span>
+any one with an eye for the tasteful.<a name= "fnanchor_232-4" id=
+"fnanchor_232-4"></a><a href= "#footnote_232-4" class=
+"fnanchor">[232-4]</a> Not only on the roofs of houses were fish-ponds to
+be seen, but gardens even hanging on towers, and which must have been as
+small, ugly and inconvenient as they were costly.<a name= "fnanchor_232-5"
+id= "fnanchor_232-5"></a><a href= "#footnote_232-5" class=
+"fnanchor">[232-5]</a> Especially characteristic of the time was the custom
+of dissolving pearls in wine, not to make it more palatable,<a name=
+"fnanchor_TN54" id= "fnanchor_TN54"></a><a href= "#footnote_TN54" class=
+"fnanchor">[TN 54]</a> but more expensive.<a name= "fnanchor_232-6" id=
+"fnanchor_232-6"></a><a href= "#footnote_232-6" class=
+"fnanchor">[232-6]</a> The emperor Caligula, from simple caprice, caused
+mountains to be built up and cut away: <i>nihil tam efficere concupiscebat,
+quam, quod posse effici negaretur</i>.<a name= "fnanchor_232-7" id=
+"fnanchor_232-7"></a><a href= "#footnote_232-7" class=
+"fnanchor">[232-7]</a> This is the real maxim of the third period of
+luxury! People changed their dress at table, inconvenient as it was to do
+so, occasionally as often as eleven times. Perfumes were mixed with the
+wine that was drunk, much as it spoiled its taste, only that the drinkers
+might emit sweet odors from every pore. There were many so used to being
+waited on by slaves that they required to be reminded by them at what times
+they should eat and when they should sleep. It is related of one who
+affected superiority over others in this respect, that he was carried from
+his bath and placed on a cushion, when he asked his attendant: "Am I
+sitting down now?"<a name= "fnanchor_232-8" id= "fnanchor_232-8"></a><a
+href= "#footnote_232-8" class= "fnanchor">[232-8]</a> It is no wonder,
+indeed, that an Apicius should reach out for the poisoned cup when his
+fortune had dwindled to only <i>centies sestertium</i>, <i>i. e.</i>, to
+more than half a million thalers.<a name= "fnanchor_232-9" id=
+"fnanchor_232-9"></a><a href= "#footnote_232-9" class=
+"fnanchor">[232-9]</a></p>
+
+<p>In this last period, the coarse debauchery of the earlier periods is
+added to the refined. Swarms of servants, retinues <span class=
+'pagenum'>[Pg 243]</span> of gladiators who might be even politically
+dangerous,<a name="fnanchor_232-10" id="fnanchor_232-10"></a><a href=
+"#footnote_232-10" class="fnanchor">[232-10]</a> monster banquets, at which
+Cæsar, for instance, entertained the whole Roman people, colossal palaces
+such as Nero's <i>aurea domus</i>, which constituted a real city; annoying
+ostentation in dress<a name="fnanchor_232-11" id= "fnanchor_232-11"></a><a
+href="#footnote_232-11" class= "fnanchor">[232-11]</a> again becomes the
+order of the day. The more despotic a state becomes, the more is the
+craving for momentary enjoyment wont to grow; and for the same reason that
+great plagues diminish frugality and morality.<a name="fnanchor_232-12"
+id="fnanchor_232-12"></a><a href= "#footnote_232-12"
+class="fnanchor">[232-12]</a></p>
+
+ <p class="footnote"> <a name="footnote_232-1" id="footnote_232-1"></a>
+ <a href="#fnanchor_232-1">[232-1]</a>
+ <i>Meierotto</i>, Sitten und Lebensart des Römer, II, 1776;
+ <i>Boettiger</i>, Sabina, II, 1803; <i>Friedländer</i>, Darstellungen aus
+ der Sittengeschichte Roms, Bd. III, 1868; which latter work has been
+ written with the aid of all that modern science can afford.</p>
+
+ <p class="footnote"> <a name="footnote_232-2" id="footnote_232-2"></a>
+ <a href="#fnanchor_232-2">[232-2]</a>
+ <i>Plin.</i>, H. N., XXXVII, 7; XVIII, 2; <i>Seneca</i>, Quaest. Natur.,
+ I, 17; Consol. ad. Helviam, 12.</p>
+
+ <p class="footnote"> <a name="footnote_232-3" id="footnote_232-3"></a>
+ <a href="#fnanchor_232-3">[232-3]</a>
+ <i>Seneca</i>, Quaest. Natur., III, 18; <i>Plin.</i>, H. N., IX, 30.</p>
+
+ <p class="footnote"> <a name="footnote_232-4" id="footnote_232-4"></a>
+ <a href="#fnanchor_232-4">[232-4]</a>
+ <i>Seneca</i>, De Benef., VII, 9; <i>Plin.</i>, N. N., VIII, 74.</p>
+
+ <p class="footnote"> <a name="footnote_232-5" id="footnote_232-5"></a>
+ <a href="#fnanchor_232-5">[232-5]</a>
+ <i>Valer. Max.</i>, IX, 1; <i>Seneca</i>, Epist, 122. Thus Hortensius
+ sprinkled his trees with wine. <i>Macrob.</i>, Sat., III, 13.</p>
+
+ <p class="footnote"> <a name="footnote_232-6" id="footnote_232-6"></a>
+ <a href="#fnanchor_232-6">[232-6]</a>
+ Besides Cleopatra, Caligula especially did this frequently. Compare also
+ <i>Horat.</i>, Serm., II, 3, 239 ff. Similarly, the luxury of the actor
+ Aesopus, when he placed a dish worth 6,000 <i>louis d'or</i> before his
+ guests, consisting entirely of birds which had been taught to sing or
+ speak. <i>Pliny</i>, H. N., X, 72. Compare <i>Horat.</i>, loc. cit.,
+ 345.</p>
+
+ <p class="footnote"> <a name="footnote_232-7" id="footnote_232-7"></a>
+ <a href="#fnanchor_232-7">[232-7]</a>
+ <i>Sueton.</i>., Caligula, 37. <i>Hoc est luxuriae propositum, gaudere
+ perversis. Seneca</i>., Epist., 122. According to the same letter of
+ Seneca, the luxury of Nero's time had its source rather in vanity than in
+ sensuality and gluttony.</p>
+
+ <p class="footnote"> <a name="footnote_232-8" id="footnote_232-8"></a>
+ <a href="#fnanchor_232-8">[232-8]</a>
+ <i>Martial</i>, V, 79; <i>Plin</i>., H. N. XIII, 5. <i>Seneca</i>, De
+ Brev. Vitæ. I, 12.</p>
+
+ <p class="footnote"> <a name="footnote_232-9" id="footnote_232-9"></a>
+ <a href="#fnanchor_232-9">[232-9]</a>
+ <i>Seneca</i>, Cons. ad Helviam 10, <i>Martial</i>, III, 22.</p>
+
+ <p class="footnote"> <a name="footnote_232-10" id="footnote_232-10"></a>
+ <a href="#fnanchor_232-10">[232-10]</a>
+ Hence, early limited by law. <i>Sueton.</i>. Caes. 10. Augustus limited
+ the exiles to taking 20 slaves with them: <i>Dio Cass.</i> VII, 27.
+ Special value attached to dwarfs, buffoons, hermaphrodites, eunuchs,
+ precisely as among the moderns in the times of the degenerated absolutist
+ courts, the luxury of which is closely allied in many respects to that of
+ declining nations.</p>
+
+ <p class="footnote"> <a name="footnote_232-11" id="footnote_232-11"></a>
+ <a href="#fnanchor_232-11">[232-11]</a>
+ Caligula's wife wore, on ordinary occasions, 40,000,000 sesterces worth of
+ ornaments. <i>Plin.</i> H. N. IX, 58.</p>
+
+ <p class="footnote"> <a name="footnote_232-12" id="footnote_232-12"></a>
+ <a href="#fnanchor_232-12">[232-12]</a>
+ <i>Gibbon</i>, History of the Decline and Fall of the Roman Empire, ch.
+ 27. What a parallel between this later Roman luxury and the literary taste
+ represented for instance by Seneca!</p>
+
+ <p class="footnote">Let any one who would embrace the three periods of
+ luxury in one view, compare the funeral ceremonies of the Greek age of
+ chivalry (<i>Homer</i>, Il.), with those in <i>Thucyd.</i> (II, 34, ff.),
+ <i>Demosth.</i> (Lept., 499 seq.), and the interment of Alexander the
+ Great and, of his friend Hephaestion (<i>Diodor.</i>, XVII, 115, XVIII, 26
+ ff.) Sullas (Serv. ad <i>Virgil</i>, Æneid VI, 861. <i>Plutarch</i>,
+ Sulla, 38), and that of the wife of the emperor Nero (<i>Plin.</i>, H. N.
+ XII, 41). <i>Roscher</i>, loc. cit. 66 ff.</p>
+
+<p class="p2 center"><a name="S233"></a>SECTION CCXXXIII.</p>
+
+<p class="center smaller">LUXURY-POLICY.</p>
+
+<p>Sumptuary laws (<i>die Luxusgesetzgebung</i>) have been aimed, at all
+times, principally at the outlay for clothing, for the table and for
+funerals.<a name= "fnanchor_233-1" id= "fnanchor_233-1"></a><a
+href="#footnote_233-1" class="fnanchor">[233-1]</a> In most nations the
+policy of luxury <span class='pagenum'>[Pg 244]</span> has its beginning in
+the transition from the first to the second period of luxury above
+described.<a name= "fnanchor_233-2" id= "fnanchor_233-2"></a><a
+href="#footnote_233-2" class="fnanchor">[233-2]</a> The extravagant feasts,
+which remain of the first period, seem vulgar to the new public opinion
+which is created. On the other hand, the conveniences of life, the
+universality, the refinement and variety of enjoyments characteristic of
+the second period are not acceptable to the austerity of old men, and are
+put down as effeminacy. In this period the bourgeoisie generally begin to
+rise in importance, and the feudal aristocracy to decay. The higher classes
+see the lower approximate to them in display, with jealous eyes. And,
+hence, dress is wont to be graded in strict accordance with the differences
+of class.<a name= "fnanchor_233-3" id= "fnanchor_233-3"></a><a
+href="#footnote_233-3" class="fnanchor">[233-3]</a> But these <span
+class='pagenum'>[Pg 245]</span> laws must be regarded as emanating from the
+tendency, which prevails in these times, of the state to act as the
+guardian of its wards, its subjects. The authority of the state waxes
+strong in such periods; and with the first consciousness of its power, it
+seeks to draw many things into its sphere, which it afterwards
+surrenders.</p>
+
+ <p class="footnote"> <a name="footnote_233-1" id="footnote_233-1"></a>
+ <a href="#fnanchor_233-1">[233-1]</a>
+ Which of these three kinds of luxury specially preponderated has always
+ depended on the peculiarities of national character. Thus, among the
+ ancient Romans, it was the second; among the French, the first. In Germany
+ the prohibitions relating to "toasts," or drinking one another's health
+ have played a great part. Thus the well-known Cologne reformation of 1837.
+ Compare <i>Seb. Münster</i>, Cosmogr., 326.</p>
+
+ <p class="footnote"> <a name="footnote_233-2" id="footnote_233-2"></a>
+ <a href="#fnanchor_233-2">[233-2]</a>
+ In Greece, <i>Lycurgus'</i> legislation seems to have contained the first
+ prohibition relating to luxury. No one should own a house or household
+ article which had been made with a finer implement than an ax or a saw;
+ and no Spartan cook should use any other spice than salt and vinegar.
+ (<i>Plut.</i>, De Sanitate, 12; <i>Lycurg.</i>, 13. On Periander, see
+ <i>Ephorus</i>, ed. <i>Marx</i>, fr. 106. <i>Heracb.</i>, Pont. ed.;
+ <i>Köhler</i>, fr. 5; <i>Diog. Laert.</i>, I, 96 ff.) The
+ luxury-prohibitions of Solon were aimed especially at the female passion
+ for dress and the pomp of funerals. Those who had the surveillance of the
+ sex watched also over the luxury of banquets. <i>Athen.</i>, VI, 245;
+ <i>Demosth.</i> in <i>Macart.</i>, 1070. In Rome, there were laws
+ regulating the pomp of and display at funerals, dating from the time of
+ the Kings; but especially are such laws to be found in the twelve tables.
+ Lex Oppia de Cultu Mulierum in the year 215 before Christ. A very
+ interesting debate concerning the abolition of this law in <i>Livy</i>,
+ XXXIV, 1 ff. About 189, prohibition of several foreign articles of luxury.
+ <i>Plin.</i>, H. N., XIII, 5, XIV, 16. Measures of Cato the censor.
+ (<i>Livy</i>, XXXIX, 44.) First law relating to the table, L. Orchia, in
+ the year 187; afterwards L. Fannia, 161, L. Didia, 143 before Christ.
+ (<i>Macrob.</i>, Sat. V, 13; <i>Gellius</i>, N. A., II, 24. <i>Plin.</i>,
+ H. N., X, 7.) After a long pause, sumptuary laws relating to food,
+ funerals and games of chance, constitute an important part of Sulla's
+ legislation.</p>
+
+ <p class="footnote"> <a name="footnote_233-3" id="footnote_233-3"></a>
+ <a href="#fnanchor_233-3">[233-3]</a>
+ <i>Latus clavus</i> of the Roman senators; <i>annulus</i> of the knights.
+ In the latter middle age, the knights were wont to be allowed to wear
+ gold, and esquires only silver; the former, damask; the latter, satin or
+ taffeta; but when the esquires also used damask, velvet was reserved for
+ the knights alone. <i>St. Palaye</i>, Das Ritterwesen, by <i>Klüber</i>,
+ IV, 107; II, 153 seq. But towards the end of the middle ages many
+ sumptuary laws were enacted in cities by plebeian jealousy of the rich.
+ The Venetian sumptuary laws were passed on account of the anxiety of the
+ state that some rich men might shine above the rest of the oligarchs.</p>
+
+<p class="p2 center"><a name="S234"></a>SECTION CCXXXIV.</p>
+
+<p class="center smaller">HISTORY OF SUMPTUARY LAWS.</p>
+
+<p>As in Italy, Frederick II., in Aragon, Iago I., in 1234, in England,
+Edward III., by 37, Edward III., c. 8 ff., so in France Philip IV. was the
+first who busied himself seriously with sumptuary legislation;<a
+name="fnanchor_234-1" id= "fnanchor_234-1"></a><a href= "#footnote_234-1"
+class="fnanchor">[234-1]</a> that is the same king who had introduced in so
+many things the modern political life into France. (For instance, the
+ordinance of 1294, regulating apparel and the luxury of the table.) In the
+14th century, we find sumptuary laws directed mainly against expense for
+furs, and in the 16th mainly against that for articles of gold and silver.
+From the descriptions left us in such laws of the prohibited luxuries, we
+may learn as much of the history of technology and of fashion, as we may of
+the history of classes from the gradation of the things permitted. The
+fines imposed for violations of these laws, under Philip IV. went for the
+most part to the territorial lord; and in the 16th and 17th centuries to
+the foundation of charitable institutions. The state, as a rule, took no
+share of them; doubtless to avoid the odium which might attach to this kind
+of revenue.</p>
+
+<p><span class='pagenum'>[Pg 246]</span>Beginning with the end of the 16th
+century, the sumptuary laws of France relating to the luxuries permitted to
+the several classes of the people disappear. The legislator ceases to be
+guided by moral considerations and begins to be influenced by reasons
+partaking of a commercial and police character; and here we may very
+clearly demonstrate the origin of the so-called mercantile or protective
+system. Thus, in the declaration of Louis XIV. dated December 12, 1644, we
+find a complaint, that not only does the importation of foreign articles of
+luxury threaten to rob France of all its gold and silver, but also that the
+home manufacture of gold cloth, etc., which at Lyons alone ate up 10,000
+livres a week, had the same effect. Under Colbert, in 1672, it was
+specially provided for, in the prohibition of coarser silver ware, that all
+such ware should be brought to the mint.<a name="fnanchor_234-2" id=
+"fnanchor_234-2"></a><a href= "#footnote_234-2" class=
+"fnanchor">[234-2]</a> In the edict of 1660, the king even says that he has
+in view especially the higher classes, officers, courtiers, etc., in whom
+it was his duty to be most deeply interested. To preserve the latter from
+impoverishment was the main object of the law.</p>
+
+<p>Under Louis XV. all sumptuary laws were practically a dead letter.<a
+name= "fnanchor_234-3" id= "fnanchor_234-3"></a><a href= "#footnote_234-3"
+class= "fnanchor">[234-3]</a> Their enforcement is, indeed, exceedingly
+difficult, <span class='pagenum'>[Pg 247]</span> as it is always harder to
+superintend consumption than production. The latter is carried on in
+definite localities, not unfrequently even in the open air. The former is
+carried on in the secrecy of a thousand homes. Besides, sumptuary laws have
+very often the effect to make the forbidden fruit all the sweeter. Where
+they are based on a difference of class, not only the passion for pleasure,
+but the vanity of the lower classes is an incentive to their violation.<a
+name="fnanchor_234-4" id="fnanchor_234-4"></a><a href="#footnote_234-4"
+class="fnanchor">[234-4]</a> Spite of the severity of the penalties
+attached to the violation of these laws, of redoubled measures of control,
+which are dreadful burdens on the intercourse between man and man,<a
+name="fnanchor_234-5" id="fnanchor_234-5"></a><a href="#footnote_234-5"
+class="fnanchor">[234-5]</a> the French government has been compelled to
+admit, after almost every internal commotion, and almost every external
+war, that its sumptuary laws fell into disuse.</p>
+
+ <p class="footnote"> <a name="footnote_234-1" id="footnote_234-1"></a>
+ <a href="#fnanchor_234-1">[234-1]</a>
+ Ordonnances de France, I, 324, 531. Worms law of 1220. (<i>Riehl</i>,
+ Pfälzer, 246.) Braunschweig law of 1228, that at weddings there should not
+ be over 12 plates nor more than three musicians. (<i>Rehtmeyer</i>,
+ Chron., 466.) Danish sumptuary law of 1269. First law regulating dress in
+ Prussia in 1269. (<i>Voigt</i>, Gesch. von Preussen, V, 97.) On Henry II.,
+ see <i>v. Raumer</i>, Hohenstaufen, VI, 585. Some of the earlier
+ restrictions on luxury, such as that of 190 in England and France, against
+ scarlet ermine, etc., may have been related to the religious fervor of the
+ crusades. <i>St. Louis</i>, during the whole period of his crusades wore
+ no articles of luxury.</p>
+
+ <p class="footnote"> <a name="footnote_234-2" id="footnote_234-2"></a>
+ <a href="#fnanchor_234-2">[234-2]</a>
+ The English prohibition against the wearing of silk on hats, caps,
+ stockings etc. (1 and 2 Phil. and Mary, ch. 2.) was promulgated with the
+ intention of promoting the home manufacture of wool. And so <i>Sully</i>,
+ Economics, L, XII, XVI, was in favor of laws regulating outlay mainly from
+ "mercantilistic" reasons, that the country might not be impoverished by
+ the purchase of foreign expensive articles. The police ordinance of the
+ Empire of 1548, tit. 9, desired to guard against both the "excessive"
+ exportation of money and the obliteration of class differences; that of
+ 1530, tit. 9, and the Austrian police ordinance of Ferdinand I. had only
+ the second object in view. (<i>Mailath</i>, Gesch., von Oesterreich, II,
+ 169 ff.) How, in Denmark, prohibitions of luxury grew very soon into
+ prohibitions of imports with a protective intention, see in
+ <i>Thaarup</i>, Dänische Statistik, I, 521 seq. On the mercantilistic
+ object of the greater number of prohibitions of coffee, in the 18th
+ century, see <i>Dohm</i>, über Kaffeegesetzgebung, in the D. Museum, Bd.,
+ II, St. 8, No. 4.</p>
+
+ <p class="footnote"> <a name="footnote_234-3" id="footnote_234-3"></a>
+ <a href="#fnanchor_234-3">[234-3]</a>
+ <i>Des Essart</i>, Dictionnaire universel de Police, VI, 146. In Great
+ Britain, the Scotch luxury-law of 1621 is the last. (<i>Anderson</i>,
+ Origin of Commerce, a. 1621.) In Germany, there were some such laws until
+ the end of the 18th century; and the laws regulating mourning have lasted
+ longest. Compare that of Frederick the Great of 1777, the Bamberg and
+ Wurzberg laws of 1784, in <i>Schlözer</i>, Staatsanzeigen, IX, 460; fol.
+ 141 ff. There are many men who have no desire to go to any heavy expense
+ in mourning, but do not dare to give expression thereto in certain cases,
+ and therefore look with favor on a law to which they may appeal as an<a
+ name= "fnanchor_TN55" id= "fnanchor_TN55"></a><a href= "#footnote_TN55"
+ class= "fnanchor">[TN 55]</a> excuse.</p>
+
+ <p class="footnote"> <a name="footnote_234-4" id="footnote_234-4"></a>
+ <a href="#fnanchor_234-4">[234-4]</a>
+ Compare <i>N. Montaigne</i>, 1580, Essais, I, 63. A striking instance in
+ antiquity: <i>Macrob.</i>, II, 13; most recently in <i>Lotz</i>, Revision,
+ I, 407.</p>
+
+ <p class="footnote"> <a name="footnote_234-5" id="footnote_234-5"></a>
+ <a href="#fnanchor_234-5">[234-5]</a>
+ Compare especially the French sumptuary law of 1567. Zaleucos went so far
+ in his severity as to punish with death the drinking of unmixed wine,
+ without the prescription of a physician. (<i>Athen.</i>, IX, 429.) The
+ effort has sometimes been made to enlist the feeling of honor of the
+ people in the controlling of luxury. Thus old Zaleucos forbade the wearing
+ of gold rings or Milesian cloth unless the wearer desired to commit
+ adultery, or to be guilty of sins against nature (<i>Diodor.</i>, XII,
+ 21); but such laws are scarcely attended with success.</p>
+
+<p class="p2 center"><a name="S235"></a>SECTION CCXXXV.</p>
+
+<p class="center smaller">DIFFICULTY OF ENFORCING SUMPTUARY LAWS.</p>
+
+<p>The impossibility of enforcing sumptuary laws has been most strikingly
+observed, where it has been attempted to suppress the consumption of
+popular delicacies in the first stages <span class='pagenum'>[Pg
+248]</span> of their spread among the people. Thus, an effort was made in
+this direction in the sixteenth century, as regards brandy; in the
+seventeenth, as regards tobacco; in the eighteenth, as regards coffee; all
+which three articles were first allowed to be used only as medicines.<a
+name="fnanchor_235-1" id= "fnanchor_235-1"></a><a href= "#footnote_235-1"
+class="fnanchor">[235-1]</a> When governments discovered after some time
+the fruitlessness of the efforts, they gave up the prohibition of these
+luxuries and substituted taxes on them instead.<a name= "fnanchor_TN56" id=
+"fnanchor_TN56"></a><a href= "#footnote_TN56" class= "fnanchor">[TN 56]</a>
+<a name="fnanchor_235-2" id= "fnanchor_235-2"></a><a href="#footnote_235-2"
+class="fnanchor">[235-2]</a> Thus an effort was made to combine a moral and
+a fiscal end. But it should not be lost sight of that the lower these taxes
+are, the greater the revenue they bring in; that is, the less the moral end
+is attained, the more is the fiscal end. Even Cato took this course. His
+office of censor, which united the highest moral superintendence with the
+highest financial guidance, must of itself have led him in this
+direction.<a name= "fnanchor_235-3" id= "fnanchor_235-3"></a><a href=
+"#footnote_235-3" class= "fnanchor">[235-3]</a> In modern times the most
+important excises and financial duties of entry have been evolved out of
+sumptuary laws. Even the Turks, after having long tried to prohibit
+tobacco-smoking in vain, afterwards found in the duties they imposed on
+that plant a rich source of income. That such taxes are among the best
+imposed, where they do not lead to frauds on the government, <span
+class='pagenum'>[Pg 249]</span> become excessive, or diminish consumption
+to too great an extent, is universally conceded.</p>
+
+<p>Beyond this there is, on the whole, little left of the old police
+regulations relating to luxury. Thus, governmental consent is, in most
+countries, required for the establishment of places where liquors are sold
+at retail, for the maintenance of public places of amusement, for shooting
+festivals, fairs, etc.; and this consent should not be too freely granted.
+The police power prescribes certain hours at which drinking places shall be
+closed. Games of chance are wont to be either entirely prohibited or
+restricted to certain places and times (bathing places), or are reserved as
+the exclusive right of certain institutions, especially state institutions.
+The object of this is, on the one hand, to facilitate their supervision,
+and on the other, to diminish the number of seductive occasions. Here, too,
+belongs the appointment of guardians to spendthrifts, which is generally
+done on the motion of the family by the courts; but which, indeed, occurs
+too seldom to have any great influence on the national resources, or on
+national morals.<a name="fnanchor_235-4" id="fnanchor_235-4"></a><a
+href="#footnote_235-4" class="fnanchor">[235-4]</a></p>
+
+ <p class="footnote"> <a name="footnote_235-1" id="footnote_235-1"></a>
+ <a href="#fnanchor_235-1">[235-1]</a>
+ Hessian law that only apothecaries should retail brandy, 1530. English
+ tobacco laws of 1604; <i>Rymer</i>, Fœdera, XVI, 601. Papal
+ excommunication fulminated in 1624, against all who took snuff in church,
+ and repeated in 1690. A Turkish law of 1610 provided that all smokers
+ should have the pipe broken against their nose. A Russian law of 1634,
+ prohibiting smoking under penalty of death. In Switzerland, even in the
+ 17th century, no one could smoke except in secret. Coffee had a hard
+ struggle even in its native place. (<i>Ritter</i>, Erdkunde, XIII, 574
+ ff.) Prohibited in Turkey in 1633, under pain of death. <i>v. Hammer</i>,
+ Osmanische Staatsverwaltung, I, 75. In 1769, coffee was still prohibited
+ in Basel, and was allowed to be sold by apothecaries only, and as
+ medicine. (<i>Burkhardt</i>, C. Basel, I, 68.) Hanoverian prohibition of
+ the coffee trade in the rural districts in 1780: <i>Schlözer</i>,
+ Briefwechsel, VIII, 123 ff.</p>
+
+ <p class="footnote"> <a name="footnote_235-2" id="footnote_235-2"></a>
+ <a href="#fnanchor_235-2">[235-2]</a>
+ According to <i>v. Seckendorff</i>, Christenstaat, 1685, 435 seq., a
+ decidedly unchristian change.</p>
+
+ <p class="footnote"> <a name="footnote_235-3" id="footnote_235-3"></a>
+ <a href="#fnanchor_235-3">[235-3]</a>
+ <i>Livy</i>, XXXIX, 44. In Athens, too, the highest police board in the
+ matter of luxury was the areopagus, which was at the same time a high
+ financial court. Sully transformed the prohibition of luxury in regard to
+ banquets into a tax on delicacies. Similarly, in regard to
+ funeral-luxuries, at an earlier date. (<i>Cicero</i>, ad. Att., XII,
+ 35.)</p>
+
+ <p class="footnote"> <a name="footnote_235-4" id="footnote_235-4"></a>
+ <a href="#fnanchor_235-4">[235-4]</a>
+ Customary even in the early Roman republic, and adjudged <i>exemplo
+ furioso</i>. (<i>Ulpian</i>, in L. 1 Digest, XXVII, 10.) The immediate
+ knights of the empire were in this respect very severe towards those of
+ their own order. See <i>Kerner</i>, Reichsrittersch. Staatsrecht, II, 381
+ ff. <i>Sully</i> ordered the parliaments to warn spendthrifts, to punish
+ them and place them under guardianship. (Economies royales, L, XXVI.)
+ According to <i>Montesquieu</i>, it is a genuine aristocratic maxim to
+ hold the nobility to a punctual payment of their debts. (Esprit des Lois,
+ V, 8.)</p>
+
+<p class="p2 center"><a name="S236"></a>SECTION CCXXXVI.</p>
+
+<p class="center smaller">EXPEDIENCY OF SUMPTUARY LAWS.</p>
+
+<p>To judge of the salutariness of sumptuary laws, we must keep the above
+three social periods in view throughout. At the close of the first period,
+every law which restricts the excesses of the immediately succeeding age
+(the middle age) is useful because it promotes the noble luxury of the
+second <span class='pagenum'>[Pg 250]</span> period.<a name=
+"fnanchor_236-1" id= "fnanchor_236-1"></a><a href= "#footnote_236-1"
+class="fnanchor">[236-1]</a> And so, in the third period, legislation may
+at least operate to drive the most immoral and most odious forms of vice
+under cover, and thus to diminish their contagious seduction. It is a
+matter of significance that, in Rome, the most estimable of the emperors
+always endeavored to restrict luxury.<a name= "fnanchor_236-2" id=
+"fnanchor_236-2"></a><a href= "#footnote_236-2" class=
+"fnanchor">[236-2]</a> But too much should not be expected of such laws.
+<i>Intra animum medendum est; nos pudor in melius mutet.</i><a name=
+"fnanchor_236-3" id= "fnanchor_236-3"></a><a href= "#footnote_236-3"
+class="fnanchor">[236-3]</a> It is at least necessary, that the example
+given in high places should lend its positive aid, as did that of
+Vespasian, for instance, who thus really opposed a certain barrier to the
+disastrous flood of Roman luxury.<a name= "fnanchor_236-4" id=
+"fnanchor_236-4"></a><a href= "#footnote_236-4" class=
+"fnanchor">[236-4]</a></p>
+
+<p>But a strong and flourishing nation has no need of such leading
+strings.<a name= "fnanchor_236-5" id= "fnanchor_236-5"></a><a
+href="#footnote_236-5" class="fnanchor">[236-5]</a> Where an excrescence
+has to be extirpated, the people can use the knife themselves. I need call
+attention only to the temperance societies of modern times (Boston, 1803),
+which spite of all their exaggeration<a name= "fnanchor_236-6" id=
+"fnanchor_236-6"></a><a href= "#footnote_236-6" class=
+"fnanchor">[236-6]</a> may have a very <span class='pagenum'>[Pg
+251]</span> beneficial effect on the morally weak by the solemn nature of
+the pledge, and the control their members mutually exercise over one
+another. It is estimated that, of all who enter them, in the British
+Empire, at least 50 per cent. remain true to the pledge. In Ireland the
+government had endeavored for a long time to preserve the country from the
+ravages of alcohol by the imposition of the highest taxes and the severest
+penalties for smuggling. Every workman in an illegal distillery was
+transported for seven years, and every town in which such a one was found
+was subjected to a heavy fine. But all in vain. Only numberless acts of
+violence were now added to beastly drunkenness. On the other hand, the
+temperance societies of the country decreased the consumption of brandy
+between 1838 and 1842, from 12,296,000 gallons to 5,290,000 gallons. The
+excise on brandy decreased £750,000; but many other taxable articles
+yielded so much larger a revenue, that the aggregate government income
+there increased about £91,000.<a name="fnanchor_236-7" id=
+"fnanchor_236-7"></a><a href= "#footnote_236-7" class=
+"fnanchor">[236-7]</a> <a name="fnanchor_236-8" id= "fnanchor_236-8"></a><a
+href="#footnote_236-8" class= "fnanchor">[236-8]</a> <span
+class='pagenum'>[Pg 252]</span> The Puritanical laws which some of the
+United States of North America have passed prohibiting all sales of
+spirituous liquors except for ecclesiastical, medical or chemical purposes,
+have been found impossible of enforcement.<a name="fnanchor_236-9" id=
+"fnanchor_236-9"></a><a href="#footnote_236-9" class=
+"fnanchor">[236-9]</a> <a name= "fnanchor_236-10" id=
+"fnanchor_236-10"></a><a href="#footnote_236-10" class=
+"fnanchor">[236-10]</a></p>
+
+ <p class="footnote"> <a name="footnote_236-1" id="footnote_236-1"></a>
+ <a href="#fnanchor_236-1">[236-1]</a>
+ Commendable laws relating to luxury in Florence in the beginning of the
+ 15th century. The outlay for dress, for the table, for servants and
+ equipages was limited; but, on the other hand, it was entirely
+ unrestricted for churches, palaces, libraries, and works of art. The
+ consequences of this legislation are felt even in our day.
+ (<i>Sismondi</i>, Gesch. der Ital. Freistaaten im M. A., VIII, 261.
+ Compare <i>Machiavelli</i>, Istor. Fior., VII, a., 1472.)</p>
+
+ <p class="footnote"> <a name="footnote_236-2" id="footnote_236-2"></a>
+ <a href="#fnanchor_236-2">[236-2]</a>
+ Thus Nerva (<i>Xiphilin.</i>, exc. Dionis, LXVIII, 2); Hadrian
+ (<i>Spartian V. Hadrian</i>, 22); Antoninus Pius (Capitol, 12); Marcus
+ Aurelius (Capitol, 27); Pertinax (Capitol, 9); Severus Alexander
+ (<i>Lamprid</i>, 4); Aurelian (<i>Lamprid</i>, 49); Tacitus
+ (<i>Vopisc</i>, 10 seq).</p>
+
+ <p class="footnote"> <a name="footnote_236-3" id="footnote_236-3"></a>
+ <a href="#fnanchor_236-3">[236-3]</a>
+ Extracted from the remarkable speech made by the personally frugal
+ Tiberius (<i>Sueton.</i>, Tib., 34) against sumptuary laws: <i>Tacit.</i>,
+ Annal., III, 52 ff. Compare, however, IV, 63.</p>
+
+ <p class="footnote"> <a name="footnote_236-4" id="footnote_236-4"></a>
+ <a href="#fnanchor_236-4">[236-4]</a>
+ <i>Tacit.</i>, Ann., III, 55: but the differences in fortune had, at the
+ same time, become less glaring. Henry IV. also dressed very simply for
+ example's sake, as did also Sully, and ridiculed those <i>qui portaient
+ leurs moulins et leur bois de haute-futaie sur leurs dos</i>.
+ (<i>Péréfixe</i>, Histoire du Roi Henry le grand, 208.)</p>
+
+ <p class="footnote"> <a name="footnote_236-5" id="footnote_236-5"></a>
+ <a href="#fnanchor_236-5">[236-5]</a>
+ The gross luxuries of drunkenness and gluttony are a direct consequence of
+ universal grossness, and disappear of themselves when higher wants and
+ means of satisfying them are introduced. (<i>v. Buch</i>, Reise durch
+ Norwegen und Lappland, 1810, I, 166; II, 112 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_236-6" id="footnote_236-6"></a>
+ <a href="#fnanchor_236-6">[236-6]</a>
+ While, formerly, they cared only to abstain from spirits, the so-called
+ "total abstinence" has prevailed since 1832. Most teetotallers compare
+ moderate drinking to moderate lying or moderate stealing; they even
+ declare the moderate drinker worse than the drunkard, because his example
+ is more apt to lead others astray, and he is harder to convert. (But,
+ Psalm, 104, 15!) The coat of arms of the English temperance societies is a
+ hand holding a hammer in the act of breaking a bottle. (Temperance
+ poetry!)</p>
+
+ <p class="footnote"> <a name="footnote_236-7" id="footnote_236-7"></a>
+ <a href="#fnanchor_236-7">[236-7]</a>
+ <i>McCulloch</i>, On Taxation, 342 ff. Speech of <i>O'Connell</i> in the
+ House of Commons, 27 May 1842. The more serious crimes decreased 1840-44,
+ as compared with the average number during the five previous years by 28,
+ and the most grievous by 50 per cent. (<i>Rau</i>, Lehrbuch, II, § 331.)
+ Recently, the first enthusiasm awakened by Father Matthew has somewhat
+ declined, and the consumption of brandy therefore increased. Yet, in the
+ whole United Kingdom in 1853, only 30,164,000 gallons were taxed; in 1835,
+ 31,400,000; although the population had in the meantime increased from 10
+ to 11 per cent. In 1834, there were in the United States 7,000 temperance
+ societies with a membership of 1,250,000. The members of these societies
+ are sometimes paid higher wages in factories; and ships which allow no
+ alcohol on board are insured at a premium of five per cent. less.
+ (<i>Baird</i>, History of the Temperance Societies in the United States,
+ 1837.)</p>
+
+ <p class="footnote"> <a name="footnote_236-8" id="footnote_236-8"></a>
+ <a href="#fnanchor_236-8">[236-8]</a>
+ In the princedom of Osnabrück, the number of distilleries was noticeably
+ diminished under the influence of the temperance societies; but the
+ consumption of beer was rapidly increased twenty-fold. (Hannoverisches
+ Magazin, 1843, 51. <i>Böttcher</i>, Gesch. der M. V. in der Norddeutschen
+ Bundestaaten, 1841.)</p>
+
+ <p class="footnote"> <a name="footnote_236-9" id="footnote_236-9"></a>
+ <a href="#fnanchor_236-9">[236-9]</a>
+ Even in 1838, Massachusetts had begun to restrict the sale at retail. The
+ agitation for the suppression of the liquor shops begins in 1841.
+ According to the Maine law of 1851, a government officer alone had the
+ right to sell liquor, and only for the purposes mentioned in the text. The
+ manufacture or importation of liquor for private use was left free to all.
+ A severe system of house-searching, imprisonment and inquisitorial
+ proceedings in order to enforce the law. Similarly in Vermont, Rhode
+ Island, Massachusetts and Michigan. (Edinburg Rev., July, 1854.) There
+ are, however, numberless instances related in which the law has been
+ violated unpunished since 1856, and still more since 1872. See <i>R.
+ Russell</i>, North America, its Agriculture and Climate, and Edinburg
+ Rev., April, 1873, 404.</p>
+
+ <p class="footnote"> <a name="footnote_236-10" id="footnote_236-10"></a>
+ <a href="#fnanchor_236-10">[236-10]</a>
+ From the foregoing, it is intelligible why most modern writers, even those
+ otherwise opposed to luxury, are not favorably inclined towards sumptuary
+ laws. "It is the highest impertinence and presumption in kings and
+ ministers, to pretend to watch over the economy of private people and to
+ restrain their expense, either by sumptuary laws or by prohibiting the
+ importation of foreign luxuries. They are themselves always, and without
+ any exception (?) the greatest spendthrifts in the society. If their own
+ extravagance does not ruin the state, that of their subjects never will."
+ (<i>Adam Smith</i>, I, ch. 3.) Compare <i>Rau</i>, Lehrbuch II, § 358 ff.
+ <i>R. Mohl</i>, Polizeiwissenschaft, II, 434 ff.</p>
+
+ <p class="footnote"><i>Montesquieu's</i> opinion that in monarchies luxury
+ is necessary to preserve the difference of class but that in republics it
+ is a cause of decline, is very peculiar. In the latter, therefore, luxury
+ should be restricted in every way: agrarian laws should modify the too
+ great difference in property and sumptuary laws restrain the too glaring
+ manifestations of extravagance. (Esprit des Lois, VII, 4.) As an auxiliary
+ to the history of sumptuary laws, compare <i>Boxmann</i>, De Legibus
+ Romanorum sumptuarias, 1816. <i>Sempere y Guarinos,</i> Historia del Luxo
+ y de las Leyes sumtuarias de Espana, II, 1788; <i>Vertot</i>, Sur
+ l'Establissement des Lois somptuaires parmi les Français, in the Mémoires
+ de l'Academie des Inscr., VI, 737 seq, besides the sections on the subject
+ in <i>Delamarre</i>, Traité de la Police, 1772 ff.; <i>Penning</i>, De
+ Luxu et Legibus sumtuariis, 1826. (<i>Holland.</i>)</p>
+
+<p><span class='pagenum'>[Pg 253]</span></p>
+
+<h3 class="p4">CHAPTER III.</h3>
+
+<h3>INSURANCE IN GENERAL.</h3>
+
+<p class="p2 center"><a name="S237"></a>SECTION CCXXXVII.</p>
+
+<p class="center smaller">INSURANCE IN GENERAL.</p>
+
+<p>The idea of societies for mutual assistance intended to divide the loss
+caused by destructive accidents which one person would not be able to
+recover from among a great many is very ancient. The insurance of their
+members against causes of impoverishment was one of the principal
+elements<a name="fnanchor_237-1" id="fnanchor_237-1"></a><a href=
+"#footnote_237-1" class="fnanchor">[237-1]</a> of the strength of the
+medieval communities (<i>Gemeinden und Körperschaften.</i>) If we compare
+these insurance institutions of the middle ages with those of the present,
+we discover the well-known difference between a <i>corporation</i> and an
+<i>association</i>. There the members stand to one another in the relation
+of <i>persons</i> who, therefore, seek to guaranty their entire life in the
+one combination; here, they appear only as the representatives of limited
+portions of capital confronted with a definite <span class='pagenum'>[Pg
+254]</span> risk, the average of which may be accurately determined. Hence,
+the former are of small extent, mostly local; the latter may extend over
+whole continents, and even over the whole earth. The former have uniformly
+equal members; the latter embrace men of the most different classes. While
+the former, therefore, simply govern themselves, often only on the occasion
+of their festive gatherings, the latter need a precise charter, an
+artificial tariff and a board of officers.</p>
+
+<p>As the absolute monarchical police-state constitutes, generally, the
+bridge between the middle ages and modern times, so too the transition from
+the medieval to the modern system of insurance has been frequently
+introduced by state insurance.<a name= "fnanchor_237-2" id=
+"fnanchor_237-2"></a><a href= "#footnote_237-2" class=
+"fnanchor">[237-2]</a> <a name= "fnanchor_237-3" id=
+"fnanchor_237-3"></a><a href= "#footnote_237-3" class=
+"fnanchor">[237-3]</a> This was very natural at a time when the guilds of
+the middle ages had lost their importance, and private industry was not
+ripe enough to supply the void left by them. The government of a country,
+far in advance intellectually of the majority of its subjects, may, by
+force, induce them to participate in the beneficent effects of insurance,
+and immediately provide institutions extensive enough to guaranty real
+safety. While it may be called a rule that mature private industry <span
+class='pagenum'>[Pg 255]</span> satisfies wants more rapidly, in greater
+variety, and more cheaply than state industry; in the case of insurance
+against accidents, especially of insurance against fire, there are many
+peculiarities found which would make the entire cessation of the immediate
+action of the state in this sphere, or its limitation simply to a
+legislative and police supervision of insurance, seem a misfortune. A
+dwelling is one of the most universal and urgent of wants, and indeed a
+governing one in all the rest of the arrangements of life. If it be
+destroyed, it is especially difficult to find a substitute for it, or to
+restore it. And to the poorest class of those who need insurance, private
+insurance will, perhaps, be never properly accessible.<a
+name="fnanchor_237-4" id="fnanchor_237-4"></a><a href="#footnote_237-4"
+class="fnanchor">[237-4]</a> If German fire insurance and the German system
+of fire prevention be so superior to the English and North American, etc.,
+one of the principal causes is that German governmental institutions so
+powerfully participate in it.<a name="fnanchor_237-5"
+id="fnanchor_237-5"></a><a href="#footnote_237-5"
+class="fnanchor">[237-5]</a></p>
+
+ <p class="footnote"> <a name="footnote_237-1" id="footnote_237-1"></a>
+ <a href="#fnanchor_237-1">[237-1]</a>
+ The Icelandic <i>repps</i> consisting as a rule of 20 citizens subject to
+ taxation, who mutually insured one another against the death of cattle (to
+ the extent of at least one-fourth the value), and against damage from
+ fire. After every fire three chambers of each house were replaced; so also
+ the loss of clothing and of the means of subsistence, but not other goods
+ or articles of display. (<i>Dahlmann</i>, Danisch Gesch., II, 281 ff.)
+ Scandinavian parish-duty, (<i>Gemeindepflicht),</i> of assistance in case
+ of damage by fire: <i>Wilda</i>, Gesch. des deutschen Strafrechts, I, 142.
+ Similarly Capitul. a. 779 in <i>Pertz</i>, Leges, I, 37. This matter plays
+ an important part in the guilds out of which a large portion of the
+ ancient cities were evolved: compare <i>Wilda</i>, Gildenwesen in M.
+ Alter. 123.</p>
+
+ <p class="footnote"> <a name="footnote_237-2" id="footnote_237-2"></a>
+ <a href="#fnanchor_237-2">[237-2]</a>
+ Proposed national fire insurance (<i>Landesbrandversicherung</i>) in which
+ for the time being several villages should form a company, the surplus of
+ which was to go to the ærarian,<a name= "fnanchor_TN57" id=
+ "fnanchor_TN57"></a><a href= "#footnote_TN57" class= "fnanchor">[TN
+ 57]</a> and the deficit to be made up by the same: <i>Georg Obrecht</i>,
+ Fünf unterschiedliche Secreta, Strasburg, 1617, No. 3. A similar
+ proposition made on financial grounds in 1609, and rejected in Oldenburg.
+ (<i>Beckmann</i>, Beitr. zur Gesch. der Erfind, I, 219 ff.) The idea
+ sometimes suggested in our day, of making the system of insurance a
+ government prerogative, arises as much from the passion for centralization
+ as from socialistic tendencies. Compare the Belgian Bulletin de la
+ Commission de Statist. IV, 210, and <i>Oberländer</i>, Die
+ Feuerversicherungsanstalten vor der Ständeversammlung des k. Sachsen,
+ 1857.</p>
+
+ <p class="footnote"> <a name="footnote_237-3" id="footnote_237-3"></a>
+ <a href="#fnanchor_237-3">[237-3]</a>
+ Maritime insurance is much older than insurance against risks on land; the
+ Dutch institutions of Charles V.'s time seem to have existed long before.
+ (Richesse de Hollande, I, 81 ff.) On Flemish, Portuguese and Italian
+ maritime insurance in the 14th century, see <i>Sartorius</i>, Gesch. der
+ Hanse, I, 215; <i>Schäfer</i>, Portug. Gesch. II, 103 ff., and <i>F. Bald.
+ Pegolotti</i>, Tratato della Mercatura in Della decima, etc., della Moneta
+ e della Mercatura dei Fiorentini, 1765. The class engaged in maritime
+ commerce are indeed especially and early rich in capital, speculative and
+ calculating.</p>
+
+ <p class="footnote"> <a name="footnote_237-4" id="footnote_237-4"></a>
+ <a href="#fnanchor_237-4">[237-4]</a>
+ In Berlin, in 1871, the movable property of 30.4 per cent. of all
+ dwellings was insured; but with this great difference, that of the
+ smallest (without any heatable rooms) only 5.3 per cent. were insured;
+ while of dwellings having 5-7 heatable rooms, 84 per cent. had taken this
+ precaution. (<i>Schwabe</i>, Volkszahlung von 1871, 169) But it should not
+ be forgotten that private insurance, especially when speculative, is not
+ in favor of having much to do with persons of small means, while public
+ institutions are, for the most part, obliged to reject no proposition for
+ insurance in their own line, except when coming from a few manufacturing
+ quarters especially exposed to fire.</p>
+
+ <p class="footnote"> <a name="footnote_237-5" id="footnote_237-5"></a>
+ <a href="#fnanchor_237-5">[237-5]</a>
+ Outside of Germany, public fire insurance is to be still found only in
+ German Austria, in Denmark, Switzerland and Scandinavia. The Germans had,
+ in 1871, an insurance-sum of 5,908,760,000 thalers, while the mutual
+ private insurance companies had about 1,435,000,000 (of which, at most,
+ 200,000,000 to 300,000,000 were on immovable property), and joint-stock
+ insurance companies, after deducting re-insurance
+ (<i>Rückversicherung</i>), about 7,000,000,000. (Mittheilungen der öff. F.
+ V. Anstalten, 1874, 84 ff.) Between 1865 and 1870, it was estimated that
+ the per capita insurance of the population was: in Saxony, 407 thalers; in
+ Würtemberg, 410; in Baden, 365; in Prussia, 332; in Switzerland, 425. On
+ the other hand, in the much wealthier British Empire, only 325 per capita;
+ in North America, 215. (loc. cit., 92.) Even in the case of joint-stock
+ insurance companies, the average receipts of premiums (1867-70) were, in
+ Germany, 2 per 1,000 of the insurance-sums; in the United Kingdom, 4.06
+ per 1,000; in the United States, 10.77; and the damage respectively 1.25,
+ 2.28, 5.92 per 1,000 of the insurance-sum. (loc. cit., 93.)</p>
+
+<p class="p2 center"><a name="S237a"></a>SECTION CCXXXVII (<i>a</i>).<span
+class='pagenum'>[Pg 256]</span></p>
+
+<p>INSURANCE IN GENERAL.&mdash;MUTUAL AND SPECULATIVE INSTITUTIONS.</p>
+
+<p>All insurance institutions fall into two classes:</p>
+
+<p>A. Mutual insurance companies, in which the insured are
+also as a society the insurers, and share the aggregate damage,
+of a year, for instance, among themselves.</p>
+
+<p>B. Speculative institutions, in which a party, generally a joint-stock
+company, in consideration of a certain definite compensation (premium
+agreed upon and paid in advance), assumes the risk.<a name=
+"fnanchor_237a-1" id="fnanchor_237a-1"></a><a href="#footnote_237a-1"
+class="fnanchor">[237a-1]</a></p>
+
+<p>So far as security is concerned, no absolute preference can be accorded
+to either of these classes. Mutual insurance companies require to extend
+their business very largely<a name="fnanchor_237a-2" id=
+"fnanchor_237a-2"></a><a href="#footnote_237a-2" class=
+"fnanchor">[237a-2]</a> to be able to meet great damage. And even where the
+liability of the members is unlimited, care must be taken to distinguish
+between the legally and the actually possible.<a name="fnanchor_237a-3"
+id="fnanchor_237a-3"></a><a href="#footnote_237a-3" class=
+"fnanchor">[237a-3]</a> The joint capital of a well <span class=
+'pagenum'>[Pg 257]</span> organized<a name="fnanchor_237a-4"
+id="fnanchor_237a-4"></a><a href="#footnote_237a-4" class=
+"fnanchor">[237a-4]</a> premium-association affords, in this respect
+sufficient security from the first, but the ratio between its security-fund
+and the amount of its assumed liabilities becomes less favorable as the
+business is extended, in case the fund itself is not enlarged.<a
+name="fnanchor_237a-5" id="fnanchor_237a-5"></a><a href="#footnote_237a-5"
+class="fnanchor">[237a-5]</a> Mutual insurance may accomplish something
+analogous to that accomplished by a joint-stock fund by collecting a
+reserve of yearly dues in advance, thus modifying the burdensome
+vacillation of the amount payable each year.<a name="fnanchor_237a-6"
+id="fnanchor_237a-6"></a><a href="#footnote_237a-6"
+class="fnanchor">[237a-6]</a> Experience, however, teaches, that the
+strongest form of mutual insurance, that supported either by municipalities
+or by the state, has been able to meet extraordinary damage from fire much
+better than premium-institutions, which are too quickly left in the lurch
+by the stockholders when the damage is greater than the amount of the stock
+subscribed. So also loss from fire caused by war or riots is for the most
+part and on principle, excluded by speculative insurance institutions.<a
+name="fnanchor_237a-7" id="fnanchor_237a-7"></a><a href="#footnote_237a-7"
+class="fnanchor">[237a-7]</a></p>
+
+<p><span class='pagenum'>[Pg 258]</span>In point of cheapness to the
+insured, mutual insurance seems to have the advantage, since it
+contemplates no profit.<a name="fnanchor_237a-8" id=
+"fnanchor_237a-8"></a><a href="#footnote_237a-8" class=
+"fnanchor">[237a-8]</a> From a national-economical point of view, also, it
+is very much of a question, whether the active competition of premium
+institutions, in a sphere which affords little room for industry proper, is
+more of a spur to make them "puff up" their claims (<i>Reclamen</i>) or to
+the simplification of their administration.<a name="fnanchor_237a-9"
+id="fnanchor_237a-9"></a><a href="#footnote_237a-9"
+class="fnanchor">[237a-9]</a> However, premium-institutions are more easily
+capable of extending the circle of their business;<a name=
+"fnanchor_237a-10" id="fnanchor_237a-10"></a><a href= "#footnote_237a-10"
+class="fnanchor">[237a-10]</a> which of itself decreases the general
+expenses and strengthens their insuring power. Premium-insurance supposes a
+greater development of capitalistic speculation than does mutual insurance.
+But, even in the highest stages of civilization, the competition of some
+mutual insurance companies is desirable to protect the insured from a too
+high rate of profit to the insurers.<a name="fnanchor_237a-11" id=
+"fnanchor_237a-11"></a><a href= "#footnote_237a-11" class=
+"fnanchor">[237a-11]</a> <a name= "fnanchor_237a-12" id=
+"fnanchor_237a-12"></a><a href= "#footnote_237a-12" class=
+"fnanchor">[237a-12]</a> And since the principle of <span class=
+'pagenum'>[Pg 259]</span> mutual insurance has so little attraction for
+capitalists in a time like that in which we live that it can be maintained
+perhaps only by the support of the state or of municipalities, we may
+consider the desirableness of the state's continuing to participate in some
+way in the matter of insurance as established.</p>
+
+ <p class="footnote"> <a name="footnote_237a-1" id="footnote_237a-1"></a>
+ <a href="#fnanchor_237a-1">[237a-1]</a> We might, however, improperly add
+ another class, that of self-insurance, which lies in the proper
+ distribution of a large capital over a great many points. When, for
+ instance, a large state insures its buildings, this seems a superfluous
+ outlay of public money for the benefit of private associations. Or does
+ England insure its ships? On this account, in Prussia, the insurance of
+ post-offices which Frederick William favored, has recently been done away
+ with. (<i>Stephan</i>, Gesch. der Preuss. Post, 195, 803.)</p>
+
+ <p class="footnote"> <a name="footnote_237a-2" id="footnote_237a-2"></a>
+ <a href="#fnanchor_237a-2">[237a-2]</a> According to <i>Brüggemann</i> (D.
+ Allg. Ztg., 1849, No., 75 ff.), 100 million thalers of an insurance-sum.
+ Actual American legislation prescribes in the case of mutual insurance a
+ minimum number of members of from 200 to 400, a minimum amount of annual
+ premiums of from $25,000 to $200,000, of cash payments on the annual
+ premium of from 10 to 40 per cent. of cash-paid yearly premiums, $5,000 to
+ $40,000; and a maximum amount of premium notes made by a member of $500.
+ (Compare Mittheilungen, 26 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_237a-3" id="footnote_237a-3"></a>
+ <a href="#fnanchor_237a-3">[237a-3]</a> Hence several mutual companies
+ limit themselves to a maximum liability. Thus, for instance, the Gotha
+ Fire Insurance Company requires from each member a bond that in case of
+ necessity, four times the amount of the presumptive contribution paid in
+ advance shall be paid after; in Altona, six times the yearly premium is
+ the maximum.</p>
+
+ <p class="footnote"> <a name="footnote_237a-4" id="footnote_237a-4"></a>
+ <a href="#fnanchor_237a-4">[237a-4]</a> In France, every
+ premium-insurance-company has to be approved by the government (Cod. de
+ Comm., art 37), and the approval is not given until 1/5 of the joint-stock
+ capital has been deposited. (<i>Block</i>, Dictionn. de l'administration,
+ Fr. 153.) Many recent American laws require that the shares of insurance
+ companies should be registered with the name of the owner.</p>
+
+ <p class="footnote"> <a name="footnote_237a-5" id="footnote_237a-5"></a>
+ <a href="#fnanchor_237a-5">[237a-5]</a> The Aix-Munich Fire Insurance
+ Association raised its joint-stock capital<a name= "fnanchor_TN58" id=
+ "fnanchor_TN58"></a><a href= "#footnote_TN58" class= "fnanchor">[TN
+ 58]</a> after the Hamburg fire from 1 to 3 million thalers.</p>
+
+ <p class="footnote"> <a name="footnote_237a-6" id="footnote_237a-6"></a>
+ <a href="#fnanchor_237a-6">[237a-6]</a> Usually so that the regular yearly
+ contribution is higher than the average damage and cost of administration;
+ this excess is then returned in the form of a dividend, either immediately
+ at the close of the yearly account, or which is still safer, after several
+ years. In the Stuttgart private insurance company, the reserve must amount
+ to one per cent. of the amount insured, before the premium-surplus is
+ returned. The Gotha fire insurance company, between 1821 and 1842, paid
+ back an average of 46 per cent.; and even in 1842, after the Hamburg
+ conflagration, there was an after-payment of only 98 per cent. necessary.
+ This collection in advance of a fund for extraordinary losses is more
+ secure than borrowing in case of need, and paying back in good years.
+ Thus, the Baden Landes-Brandkasse had a debt in 1837 of 800,000 florins.
+ (<i>Rau</i>, in the Archiv., III, 320 ff.) In a mutual insurance company,
+ where entrance and exit are free, this would be scarcely possible.</p>
+
+ <p class="footnote"> <a name="footnote_237a-7" id="footnote_237a-7"></a>
+ <a href="#fnanchor_237a-7">[237a-7]</a> Nearly three-fourths of the public
+ insurance institutions insure also against fire caused by war (Mitth.,
+ 1874, 85), a matter of importance even as war is waged in our own days,
+ since in 1870-71, the damage from fire by the Franco-Prussian war in
+ France was estimated at 141,000,000 francs. (Mitth., 1873, 33.)</p>
+
+ <p class="footnote"> <a name="footnote_237a-8" id="footnote_237a-8"></a>
+ <a href="#fnanchor_237a-8">[237a-8]</a> In Prussia, the mutual fire
+ insurance companies, in 1865 and 1866 had an administration outlay of 0.24
+ and 0.22 per 1,000 of the amount insured; the premium insurance companies
+ of 0.80 and 0.96; the latter doubtless including large assessments for
+ common purposes. (Preuss. Statist. Ztschr., 1868, 269.) In all Germany,
+ the outlay for administration is, for public institutions, 4 per cent. of
+ the contributions; for premium institutions, inclusive of their dividends,
+ 37.1 per cent.; for the more important French private institutions, even
+ 68.8 per cent. (Mitth., 1874, 89, 92.)</p>
+
+ <p class="footnote"> <a name="footnote_237a-9" id="footnote_237a-9"></a>
+ <a href="#fnanchor_237a-9">[237a-9]</a> German public fire insurance
+ institutions generally have a territory of their own, in which that
+ institution is the only one of the kind. On the other hand, the premium
+ institutions in the whole empire keep about 80,000 agents, i. e., a number
+ 50 times as large as the number of officers of the former, (loc. cit.
+ 90.)</p>
+
+ <p class="footnote"> <a name="footnote_237a-10" id="footnote_237a-10"></a>
+ <a href="#fnanchor_237a-10">[237a-10]</a> Mutual insurance companies, as
+ they have extended, have sometimes split up into several; for instance,
+ the insurance companies against damage by hail at Lübeck, Güstrow, Schwedt
+ and Griefswald, daughters of that at New Brandenburg.</p>
+
+ <p class="footnote"> <a name="footnote_237a-11" id="footnote_237a-11"></a>
+ <a href="#fnanchor_237a-11">[237a-11]</a> The founder of the Mutual Fire
+ Insurance Company of Gotha expressed the hope that in it, it would be
+ possible to insure 60 per cent. cheaper than was customary in the joint
+ stock companies of the time. In the system of agricultural
+ <i>Einzelhöfe</i> in Germany, small mutual insurance companies are
+ possible, and insurance then may be very cheap.</p>
+
+ <p class="footnote"> <a name="footnote_237a-12" id="footnote_237a-12"></a>
+ <a href="#fnanchor_237a-12">[237a-12]</a>
+ On the premium associations, <i>Bernoulli</i> Ueber die Vorzüge der
+ gegenseitige Brandasscuranzen vor Prämiengesellschaften, 1827. <i>Per
+ contra</i>, <i>Masius</i>, Lehre der Versicherung und Statische
+ Nachweisung aller V. Anstalten in Deutschland, 1846. In Prussia, premium
+ associations are growing more rapidly than mutual: the per capita amount
+ on the whole population insured in the former against damage from fire in
+ 1861 was 116.6 thalers; in 1866, 154.2; in 1869, 176.6; in the latter in
+ 1861, 103.5; 1866, 124.3; 1869, 154.3 thalers. (<i>Engel</i>, Statist.
+ Zeitschr., 1868, 268 ff.; 1871, 284 ff.) In France, in the former, in
+ 1857, almost 36 milliards of francs; in the latter, in 1864, 13 milliards.
+ (Mitth., 1871, 51.)</p>
+
+<p class="p2 center"><a name="S237b"></a>SECTION CCXXXVII (<i>b</i>).</p>
+
+<p>INSURANCE IN GENERAL.&mdash;ECONOMIC ADVANTAGES OF INSURANCE.</p>
+
+<p>The national-economic advantage of insurance consists in this, that the
+damage which is divided among many, and which, therefore, is felt but
+lightly by each one, is probably made up for, not by an inroad upon the
+body of still existing original resources, but by savings made from income.
+This, indeed, is unconditionally true only of such damage as does not
+depend at all on the will of man, such as, for instance, the damage caused
+by hail. On the other hand, there is especially in maritime<a name=
+"fnanchor_237b-1" id="fnanchor_237b-1"></a><a href="#footnote_237b-1"
+class= "fnanchor">[237b-1]</a> and fire insurance,<a name="fnanchor_237b-2"
+id= "fnanchor_237b-2"></a><a href="#footnote_237b-2" class=
+"fnanchor">[237b-2]</a> a great temptation to culpable and even criminal
+destruction; to the latter, when the object insured is estimated at too
+high a value. (Speculation-fires!) And it is difficult to say whether this
+drawback or that advantage is the greater. But, on the other hand, every
+kind of insurance is attended by good consequences <span
+class='pagenum'>[Pg 260]</span> to the credit of a people. It is of
+advantage to personal credit, since it prevents sudden impoverishment; but
+it is by far more advantageous to real-credit (<i>Realcredit</i> =
+<i>material credit</i>) the pledges of which, while their forms may be
+destroyed, it preserves the value of; that is their economic essence. This
+last is most clearly manifest in the case of public insurance institutions,
+with compulsory participation; while in the case of entirely voluntary
+insurance, the creditor can <span class='pagenum'>[Pg 261]</span> never be
+certain that his debtor has not neglected something necessary. The
+aggregate danger is less than the sum of individual dangers, for the reason
+that it is more certain, and that uncertainty of itself is an element of
+danger.<a name="fnanchor_237b-3" id="fnanchor_237b-3"></a><a href=
+"#footnote_237b-3" class="fnanchor">[237b-3]</a> <a name="fnanchor_237b-4"
+id="fnanchor_237b-4"></a><a href="#footnote_237b-4" class=
+"fnanchor">[237b-4]</a></p>
+
+ <p class="footnote"> <a name="footnote_237b-1" id="footnote_237b-1"></a>
+ <a href="#fnanchor_237b-1">[237b-1]</a> Even in Demosthenes' oration
+ against Zenothemis, we may see how easily the analogy of maritime
+ insurance may lead to criminal destruction of property. Similar cases
+ mentioned by <i>Pegolotti</i> before the middle of the 14th century.
+ (Delia Decima dei Fiorentini, III, 132.)</p>
+
+ <p class="footnote"> <a name="footnote_237b-2" id="footnote_237b-2"></a>
+ <a href="#fnanchor_237b-2">[237b-2]</a>
+ French experience teaches that during a commercial crisis there are more
+ fires in mercantile magazines than at other times; while in times when
+ sugar is a drug in the market, etc., many sugar factories are burned.
+ (Dictionnaire de l'Econ. polit, I, 88.) The style of our house-building
+ and fire-extinguishing institutions is wont to improve with economic
+ culture. Hence, for instance, in Mecklenburg, 1651 to 1799, cities burned
+ down, in whole or in greatest part, 72 times; 1800 to 1850, only once.
+ (<i>Boll</i>, Gesch., von Mecklenb., II, 618 ff.) However, in many
+ countries the damage caused by fire has largely increased: in Baden, for
+ instance, by 100,000 florins a year. Insurance capital, 1809 to 1818, 65
+ fl.; 1819 to 1828, 128 fl.; 1829 to 1836, 152 fl. (<i>Rau</i>, Archiv,
+ III, 322.) Similarly in Switzerland. In Bavaria, of every 10,000 buildings
+ insured, in 1856-60, there were 4.6 fires per annum; 1861-65, 5.04;
+ 1866-69, 8.67. (Preuss. Statist. Ztschr., 1871, 315.)</p>
+
+ <p class="footnote">In Saxony, in 1849-53, there was one fire in every 290
+ buildings; 1854-58, in every 201; 1859-63, in every 180. Of these fires,
+ 68 per cent. of the whole number were from known causes, i. e., 36.4 per
+ cent. from incendiarism; 28.5 per cent. from negligence. (Sächs, Statist.
+ Ztschr., 1866, 106, 115.) Even in antiquity, similar evil consequences
+ attended the generosity which gratuitously compensated damage by fire.
+ Compare <i>Juvenal</i>, III, 215 ff.; <i>Martial</i>, III, 52. In England,
+ of every 128 cases of damage by fire of "farming stock," 49 were caused by
+ incendiaries, for the most part actuated by revenge. Hence, there, a
+ notice is posted on insured buildings by the insurance companies which
+ runs: "this farm is insured; the fire office will be the only sufferer in
+ the event of a fire." In London, of every seven fires among the small
+ trading class, one is estimated to have been the work of an incendiary,
+ and of all fires at least one-third (Athenæum, 2, Nov., 1867), if not
+ one-half (Mitth., 1879, 100). One of the largest English fire insurance
+ companies estimates that the introduction of the lucifer match has caused
+ it a damage of £10,000 per annum. Of 9,345 fires, 932 were ascribed to
+ gas, 89 to certain, and 76 to doubtful, incendiarism, 127 to lucifer
+ matches, 8 to storms, 100 to negligence, 80 to drunkenness, 2,511 to the
+ catching fire of curtains, 1,178 to candles, 1,555 to chimneys,<a name=
+ "fnanchor_TN59" id= "fnanchor_TN59"></a><a href= "#footnote_TN59" class=
+ "fnanchor">[TN 59]</a> 494 to stoves, 1,323 to unknown causes. (Quart.
+ Rev., Dec, 1854, 14 ff.) Fires originate from criminal (<i>dolose</i>)
+ causes most frequently when a new stage in the politico-economical
+ development of a people is reached, which renders the buildings put up in
+ a former and lower stage of development insufficient.</p>
+
+ <p class="footnote"> <a name="footnote_237b-3" id="footnote_237b-3"></a>
+ <a href="#fnanchor_237b-3">[237b-3]</a> A Prussian fire insurance
+ regulation, as far back as 1720, expressly says: "everybody scruples to
+ make the least loan on pledged houses in towns." "Every care shall be
+ taken to make the least possible amount of loans in cities."
+ (<i>Jacobi</i>, in <i>Engel's</i> Zeitschr., 1862, 122.) <i>Leib</i>,
+ Dritte Periode, etc., 1708, cites a proverb to the effect that, in
+ Hamburg, "no house takes fire;" that is, at a time that its
+ fire-fund-system (<i>Brandkassenwesen</i>) had as yet found few imitators,
+ <i>v. Justi's</i> proposition to combine the insurance of houses against
+ fire with a loaning-bank for houses. (Polizeiwissenschaft, 1756, I, § 7, 8
+ ff.) In Russia, in 1815, the loaning bank was the only fire insurance
+ company, which however assumed risks only on stone houses at three-fourths
+ of their value in consideration of 15 per 1,000 annual premium.
+ (<i>Rau</i>, Lehrbuch, I, 229.)</p>
+
+ <p class="footnote"> <a name="footnote_237b-4" id="footnote_237b-4"></a>
+ <a href="#fnanchor_237b-4">[237b-4]</a>
+ <i>Spittler</i>, Politik., 441, objects to insurance that it diminishes
+ benevolence and approximates to communism, thus hitting the dark side of
+ all very high civilization.</p>
+
+<p class="p2 center"><a name="S237c"></a>SECTION CCXXXVII (<i>c</i>).</p>
+
+<p class="center smaller">FIRE INSURANCE.</p>
+
+<p>The present system of fire insurance has been introduced in many places
+by the establishment of so-called domanial fire-guilds
+(<i>Domanial-Brandgilden</i>), by which the country population on
+crown-lands bound themselves to mutually assist one another by furnishing
+thatch, and horse and hand power in the rebuilding of burned houses.
+Whatever was wanting after this was made up by gratuitous supplies of wood
+from the public forests, by the granting of governmental fire-licenses to
+beg (<i>begging letters</i>), by permission to have collections made in the
+churches<a name= "fnanchor_237c-1" id= "fnanchor_237c-1"></a><a
+href="#footnote_237c-1" class= "fnanchor">[237c-1]</a> etc. The next step
+was generally the establishment <span class='pagenum'>[Pg 262]</span> of
+public insurance (<i>Landes-Assecuranz</i>) only for houses,<a
+name="fnanchor_237c-2" id="fnanchor_237c-2"></a><a href="#footnote_237c-2"
+class="fnanchor">[237c-2]</a> but with compulsory membership. This
+compulsion was justified by the continuing interest of the state in the
+payment of the house-tax, as well as by the interest of the eventual owner
+of the estate, and of hypothecation-creditors.<a name="fnanchor_237c-3"
+id="fnanchor_237c-3"></a><a href="#footnote_237c-3" class=
+"fnanchor">[237c-3]</a> <a name="fnanchor_237c-4" id="fnanchor_237c-4"></a>
+<a href="#footnote_237c-4" class= "fnanchor">[237c-4]</a> The insurance
+<span class='pagenum'>[Pg 263]</span> of moveable property is much more
+recent, both by reason of the nature of the property itself, which becomes
+of importance only at a later date, and also on account of the much greater
+difficulty of carrying on such insurance.<a name="fnanchor_237c-5" id=
+"fnanchor_237c-5"></a><a href= "#footnote_237c-5" class=
+"fnanchor">[237c-5]</a> The thought of making this species of insurance
+compulsory, or of turning it over to the state, has seldom been
+suggested.</p>
+
+ <p class="footnote"> <a name="footnote_237c-1" id="footnote_237c-1"></a>
+ <a href="#fnanchor_237c-1">[237c-1]</a>
+ Thus in Austria, even after the middle of the 18th century: <i>Schopf</i>,
+ L. W. des öst. Kaiserstaates, I, p. 175. In the mandate of the electorate
+ of Saxony of Dec. 7, 1715; but the fire-fund (<i>Feuerkasse</i>) of 1729
+ depended on voluntary but regular collections, besides which it obtained
+ certain contributions from the state and the church. Those who gave
+ nothing, however, were threatened with getting nothing, or very little, in
+ case of fire. Parties desiring to rebuild massively had especially much to
+ expect. (Cod. August Forst., I, 538.) The charters of the oldest German
+ <i>Landesbrandkassen</i> contain a provision that, in future, no further
+ fire-collections shall be allowed.</p>
+
+ <p class="footnote"> <a name="footnote_237c-2" id="footnote_237c-2"></a>
+ <a href="#fnanchor_237c-2">[237c-2]</a>
+ The English Hand-in-Hand Fire Office for houses, founded in 1696; the
+ Union Fire O., for houses and movable property, in 1714: both mutual
+ institutions. The premium-institution, the Sun Fire Office, 1710
+ (<i>Frankenberg</i>, Europ. Herold, 1705, II, 181), mentions fire
+ insurance as a special characteristic of England. But we may trace fire
+ insurance on buildings and harvest supplies in the low countries about the
+ Vistula in Prussia, even as far back as 1623. (<i>Jacobi</i>, loc. cit.,
+ 131.) Brandenburg fire-fund, 1705, with voluntary admittance of all
+ houses, and fixed relation between the yearly contribution and the
+ insurance capital. If a fire happened, the fund repaired the damage caused
+ to the fullest extent its means allowed. (<i>Mylius</i>, Corp. Const.
+ March. V., I, 174 seq.) Even in 1706, it became necessary to prohibit
+ speaking ill of the institution. It was, therefore, abolished later. The
+ first Würtemberg private fire insurance company, 1754, founded on similar
+ principles, and which was still existing in 1760, had a like fate
+ (<i>Bergius</i>, Polizei und Camerelmagazin, III, 40 ff.), but it was
+ exchanged in 1773 for a mutual public company. In Berlin a mutual
+ insurance company in 1718 (<i>Bergius</i>, Cameralistenbibliothek, 151);
+ in Denmark, 1830 (<i>Thaarup</i>, Dän. Statist., II, 173 seq.); in
+ Silesia,<a name= "fnanchor_TN60" id= "fnanchor_TN60"></a><a href=
+ "#footnote_TN60" class= "fnanchor">[TN 60]</a> 1742;
+ Calenberg-Grubenhagen, 1750; in Baden, 1758; in Kurmark, 1765; in
+ Hildesheim, 1765; in Hesse-Darmstadt, 1777. In France, the Parisian
+ institution of 1745 is considered the oldest. (<i>Beckmann</i>, Beitr. z.
+ Gesch. d. Erfindd., I, 218.)</p>
+
+ <p class="footnote"> <a name="footnote_237c-3" id="footnote_237c-3"></a>
+ <a href="#fnanchor_237c-3">[237c-3]</a>
+ In Galenberg-Grubenhagen only the <i>Bauerhöfe</i> subject to the common
+ burthens were obliged to enter, in Hildesheim, all houses subject to
+ taxation; in Darmstadt all house-owners who were allowed only a
+ <i>dominium utile</i>. In Kurmark, the subjects of the estate might be
+ compelled to enter by their lords, but could not be kept out. Of Prussian
+ companies in 1846, entrance was compulsory only in those of East Prussia
+ and Posen. In Würtemberg compulsion since 1773; confirmed in 1853. Also in
+ Zurich, Jan. 24, 1832; in Schaffhausen Nov. 27, 1835. In Berne, only for
+ state, municipal and mortgaged houses; for the latter only so far as it
+ was not expressly left to the creditor. Introduced into Baden in 1807,
+ after most of the parishes (<i>Gemeinden</i>) had voluntarily accepted it;
+ confirmed in 1840. The provision that at least no judicial hypothecation
+ should be made on an un-insured house is found in the Darmstadt law of
+ 1777, § 13, and in that of Mainz of 1780, art. I, § 15. <i>Rau</i>,
+ Lehrbuch, II, § 25 a., finds compulsion in the case of property in common
+ and in that of property belonging to other persons very appropriate. It is
+ a matter worthy of thought, that, in cities like Berlin, Breslau, Thorn
+ and Stettin, compulsory fire insurance is still retained. In Upper
+ Silesia, the abolition of compulsory provisions has had for effect to
+ cause 52 per cent. of all buildings to be insured. (Press Zeitschr, 1867,
+ 329).</p>
+
+ <p class="footnote"> <a name="footnote_237c-4" id="footnote_237c-4"></a>
+ <a href="#fnanchor_237c-4">[237c-4]</a>
+ Question of introducing state insurance into Hungary. As a cultured land,
+ and one rich in capital, is better adapted to insurance, it would be folly
+ to "emancipate" ones self from Trieste, etc. in this respect. But, on the
+ other hand, only state-insurance can attract the Hungarians and make them
+ feel universally the want of insurance. A reconciliation of these opposing
+ views might be effected by compelling the peasantry to insure their farm
+ houses, and allowing complete liberty in the cities and with reference to
+ movable property.</p>
+
+ <p class="footnote"> <a name="footnote_237c-5" id="footnote_237c-5"></a>
+ <a href="#fnanchor_237c-5">[237c-5]</a>
+ Even <i>Bergins</i>, Polizei und Cameralmag., III, 80, 1768 ff., doubts
+ the possibility of the insurance of movable property. Insurance of movable
+ property of the Evangelical clergy in the electorate of Mark, in which,
+ however, only movable property of the value of 400 thalers is considered.
+ But by this provision the changeableness of the object, which so
+ facilitates fraud, was done away with. Hamburg joint-stock company for the
+ insurance of movable property, 1779. Electorate of Saxony fire-fund for
+ movable property, 1784-1818, which, however, made good, as a rule, only 25
+ per cent. of the damage caused. In Prussia, in 1814, there were only 12
+ insurance companies in which movable property could be insured. In the
+ aggregate even they were but of little extent, and had generally a
+ partnership, guild, or communal basis. (<i>Jacobi</i>, loc. cit, 123.) On
+ the other hand, in 1869, there were in all the mutual insurance companies,
+ 530,600,000 thalers worth of movable property insured, besides
+ 2,814,800,000 thalers worth of immovable property, and 366,100,000 thalers
+ worth of property of a mixed nature, partly movable and partly immovable.
+ (Preuss. Statist. Zeitschr., 1876, 298.)</p>
+
+<p class="p2 center"><a name="S237d"></a>SECTION CCXXXVII (<i>d</i>).</p>
+
+<p class="center smaller">REQUISITES OF A GOOD SYSTEM OF FIRE
+INSURANCE.</p>
+
+<p>Among the chief requisites of a good fire insurance system are the
+following:</p>
+
+<p><span class='pagenum'>[Pg 264]</span>A. The adoption in insuring of
+measures for the prevention of criminal abuse on the part of the insured.
+No one should be benefited by the burning of his insured goods.<a
+name="fnanchor_237d-1" id="fnanchor_237d-1"></a><a href="#footnote_237d-1"
+class="fnanchor">[237d-1]</a> Hence, the rates of insurance should be
+rigidly fixed according to the real value in exchange.<a name=
+"fnanchor_237d-2" id= "fnanchor_237d-2"></a><a href= "#footnote_237d-2"
+class="fnanchor">[237d-2]</a> In the case of houses, the value of the
+incombustible elements of value should be deducted; also the value of the
+ground and the value it possesses from being advantageously situated, etc.
+The simultaneous insurance of the same object in several companies without
+proper notice being given should be unconditionally prohibited.<a
+name="fnanchor_237d-3" id="fnanchor_237d-3"></a><a href="#footnote_237d-3"
+class="fnanchor">[237d-3]</a> The control <span class='pagenum'>[Pg
+265]</span> of all this may be greatly facilitated by requiring foreign
+insurance companies to obtain a special permit to carry on their business
+in the country, and to allow them to effect insurance only through
+responsible home agents.<a name="fnanchor_237d-4" id=
+"fnanchor_237d-4"></a><a href="#footnote_237d-4" class=
+"fnanchor">[237d-4]</a> Most insurance companies exclude from insurance
+personal property which may be easily secreted, such, for instance, as
+jewels, cash money, valuable documents, etc.</p>
+
+<p>B. There should be a just proportion between the insurance premium and
+the risk. This depends not only on the style of building of the houses
+themselves and of those in the neighborhood,<a name="fnanchor_237d-5"
+id="fnanchor_237d-5"></a><a href="#footnote_237d-5" class=
+"fnanchor">[237d-5]</a> on the situation, the too great intricacy
+(<i>Complicirung</i>) <span class='pagenum'>[Pg 266]</span> of which
+extends the ravages of fire, as its too great isolation makes assistance
+difficult;<a name="fnanchor_237d-6" id="fnanchor_237d-6"></a><a href=
+"#footnote_237d-6" class="fnanchor">[237d-6]</a> but also on the nature of
+the business carried on in them,<a name="fnanchor_237d-7"
+id="fnanchor_237d-7"></a><a href="#footnote_237d-7" class=
+"fnanchor">[237d-7]</a> and on the condition of the local development of
+fire police. Highly cultured places, especially large cities, are really
+much less exposed to damage from fire. To not take this into account would
+be not only to compulsorily dole out charity to the poorer classes of the
+people, and to the less cultivated portions of the country,<a
+name="fnanchor_237d-8" id="fnanchor_237d-8"></a><a href="#footnote_237d-8"
+class="fnanchor">[237d-8]</a> but it would indirectly <span
+class='pagenum'>[Pg 267]</span> put an obstacle in the way of a transition
+to the massive construction of houses, and of good, that is, as a rule, of
+costly fire-extinguishing institutions.<a name="fnanchor_237d-9"
+id="fnanchor_237d-9"></a><a href="#footnote_237d-9" class=
+"fnanchor">[237d-9]</a> On the other hand, administration must be rendered
+much more difficult by the taking of risks of many degrees of danger,
+especially as it is scarcely possible, for a long time, to even hope for a
+statistically unassailable basis of a tariff graded in exact accordance
+with the risk.<a name="fnanchor_237d-10" id="fnanchor_237d-10"></a><a
+href="#footnote_237d-10" class="fnanchor">[237d-10]</a> If those objects
+especially exposed to danger should be excluded altogether, the common
+utility of the institution would be largely diminished; and the insured
+least exposed to danger would nevertheless have to complain of a relatively
+too high contribution.<a name="fnanchor_237d-11" id=
+"fnanchor_237d-11"></a><a href="#footnote_237d-11" class=
+"fnanchor">[237d-11]</a> If every peculiar class of risks were <span class=
+'pagenum'>[Pg 268]</span> to be treated as one whole, the insuring
+principle itself would suffer.<a name="fnanchor_237d-12" id=
+"fnanchor_237d-12"></a><a href="#footnote_237d-12" class=
+"fnanchor">[237d-12]</a> Where the nation or municipality engages in the
+business of compulsory insurance, its too rigid system of rate-fixing has
+something inequitable in it, inasmuch as it makes the most provident
+housekeeper suffer from the danger from fire of his neighbor's
+establishment, a gas factory, for instance.</p>
+
+<p>C. The certainty of compensation for damage suffered. The government
+should see to it that the institution does not promise more than it can
+perform with its joint-stock capital and by means of its premiums.<a
+name="fnanchor_237d-13" id="fnanchor_237d-13"></a><a href=
+"#footnote_237d-13" class="fnanchor">[237d-13]</a> The good will of foreign
+institutions to keep their promises to the letter is best assured by
+requiring them as a condition precedent of carrying on their business in a
+country, to bind themselves to litigate only in the home courts. They
+protect themselves against the <span class='pagenum'>[Pg 269]</span> risk
+of very large insurances by the system of re-insurance, by transferring a
+portion of the premium as well as of the risk to one or more other
+insurance companies.<a name= "fnanchor_237d-14" id=
+"fnanchor_237d-14"></a><a href= "#footnote_237d-14" class=
+"fnanchor">[237d-14]</a></p>
+
+<p>D. In all highly cultured quarters, the almost entirely voluntary
+fire-extinguishing system, in which the people turned out in a body to
+battle with the flames, made way for the fire-militia system; and if the
+latter should make place for what we may designate as a standing fire-army
+which is most easily attained in connection with the fire-insurance system,
+we should reach the ideal of such a system, especially if the business of
+insurance was in the hands of the state or of the municipality. Such a
+system would be in accordance with the principle of the division of labor,
+and, also, with the fact that usually the most vital interest is the
+greatest spur to action.<a name="fnanchor_237d-15" id=
+"fnanchor_237d-15"></a><a href="#footnote_237d-15" class=
+"fnanchor">[237d-15]</a></p>
+
+ <p class="footnote"> <a name="footnote_237d-1" id="footnote_237d-1"></a>
+ <a href="#fnanchor_237d-1">[237d-1]</a> The former almost unrestricted
+ liberty of the American system of insurance has recently been curtailed,
+ in most of the states, by a rigid governmental superintendence, by special
+ insurance boards with power to permit companies to engage in the business
+ of insurance, and endowed with the right of imposing proper penalties, but
+ of declaring the privilege forfeited at the end of any year. Compare
+ <i>Brämer</i> in III, Ergänzungshefte der Preuss. Statist. Ztschr. und
+ Mitth., 1871, No. 1.</p>
+
+ <p class="footnote"> <a name="footnote_237d-2" id="footnote_237d-2"></a>
+ <a href="#fnanchor_237d-2">[237d-2]</a>
+ The first fire insurance provisions or regulations paid little attention
+ to the danger of over-valuation. Similarly <i>v. Justi</i>, Abh. von der
+ Macht, Glückseligkeit, etc., eines Staats. 1860, 81. Also <i>Krünitz</i>,
+ Oekonom. Encyclopædie, 1788, XIII, considers it improbable that any one
+ would have his home insured at a higher than its real value. On the other
+ hand, there were formerly bitter complaints made in the United States that
+ the agents, on whom the determination of the rate of premium and the
+ control of the insurance-sum depended chiefly, were led to make
+ over-valuations in furtherance of their own interests. (Mitth., 1871, 3;
+ 1874, 95.)</p>
+
+ <p class="footnote"> <a name="footnote_237d-3" id="footnote_237d-3"></a>
+ <a href="#fnanchor_237d-3">[237d-3]</a>
+ If the valuation were made to depend on the purchase price or on the cost
+ of replacing or restoring the damaged property, even this would be some
+ temptation to not entirely upright men. Hence the Baden law of 1840
+ expressly provides that instead of this, the selling price shall be the
+ basis; the law of 1852, § 17, the medium cost of the combustible parts,
+ after deduction made of the diminution in value caused by age. The fixing
+ of premiums in the case of houses should be repeated from time to time on
+ account of wear. According to the Calenb. Grubenh. law of 1823, § 21,
+ every 10 years. According to the Baden law of 1852, § 28, 33, and the
+ Württemberg law of 1853, § 12, the city council should examine annually in
+ what cases a new valuation was necessary. The more certainly
+ over-insurance is avoided, the less need is there of the superintendence
+ policy adapted to a rather barbarous state of insurance, that only a part
+ of the value shall be made good. The Phœnix fire insurance company in
+ Baden for the insurance of movable property has reserved the right to
+ investigate at any time and to satisfy itself as to the value of the
+ insured object, and to lower the amount insured in accordance with its own
+ opinion. The provision that the valuation shall be made by the authorities
+ of the place, or that it shall be approved by them is frequently found. In
+ Saxony, for instance (law of Nov. 14, 1835), the Leipzig city council
+ gives its approval when it finds the amount insured in keeping with the
+ means of the insured, and entertains no suspicions as to his honesty. To
+ what a bad state of things a less liberal course leads, see in
+ <i>Masius</i>, loc. cit., 85. This indeed is only difficult in large
+ cities. It is also to be considered that it is not so much the many small
+ amounts, but the few large ones that are dangerous to insurance. The
+ Prussian scheme wanted to give up the police superintendence of insurance,
+ but to punish over-insurance of more than 5 per cent. of the common value,
+ by imposing a fine equal to the amount of over-insurance on the insured,
+ the agents, and on the conductors of the business. (<i>Jacobi</i>, in II.
+ Ergänzhefte der Preuss. Statist. Ztschr., 1869.) The provision that the
+ amount paid as damages for a burned house shall be immediately employed in
+ rebuilding, is to be explained in part by requisite A; in part also by the
+ same police-guardianship against presumed negligence which introduced
+ compulsory insurance.</p>
+
+ <p class="footnote"> <a name="footnote_237d-4" id="footnote_237d-4"></a>
+ <a href="#fnanchor_237d-4">[237d-4]</a>
+ Compare <i>Brügemann</i>, Die Mobiliar V. in Preussen nach dem G. von
+ 1837.</p>
+
+ <p class="footnote"> <a name="footnote_237d-5" id="footnote_237d-5"></a>
+ <a href="#fnanchor_237d-5">[237d-5]</a>
+ <i>Oberländer</i>, loc. cit. 108, calls insurance without classification
+ of risks, a "mutual benevolent institution;" and one rigidly classified
+ according to the probable period of burning, "an institution for the
+ making of advances" (<i>Vorschuss-Anstalt.</i>) In Baden, even in 1737,
+ there was no difference made between a massive building and a wooden hut
+ with a straw roof in the Black forest. (<i>Rau</i>, Archiv., III, 324.)
+ Here, there was in 1844 to 1849, an average damage by fire in houses with
+ brick roofs of 1,302 florins, with thatch roofs of 1,786 florins, with
+ shingle roofs of 2,292 florins, to say nothing of the greater frequency of
+ such damage in each succeeding class. (<i>Rau</i>, Lehrbuch, II, 1, § 26,
+ a.) In Württemberg, before 1843, the owners of insured personal property,
+ in houses with thatch roofs, had, in the same time, received 22 per 1,000
+ compensation for damage; in houses with brick roofs, from 8 to 9 per
+ 1,000. (<i>Rau</i>, loc. cit.) In 17 German insurance companies, between
+ 1866 and 1869, massive buildings with hard roofs paid 1,003,000 thalers
+ and received 612,000 thalers; the not massive with hard roofs paid
+ 1,544,000 thalers and received 1,339,000; houses with soft roofs paid
+ 2,420,000 and received 2,792,000. (Preuss, Statist. Zeitschr. 1861, 327.)
+ Similar observations made in Berne during 23 years.</p>
+
+ <p class="footnote"> <a name="footnote_237d-6" id="footnote_237d-6"></a>
+ <a href="#fnanchor_237d-6">[237d-6]</a>
+ While in most English insurance companies, there are only three classes:
+ common, hazardous, and doubly hazardous, in Rhenish<a name=
+ "fnanchor_TN61" id= "fnanchor_TN61"></a><a href= "#footnote_TN61" class=
+ "fnanchor">[TN 61]</a> Prussian insurance companies, there are seven,
+ according to the style of building, and in each class two subdivisions,
+ according to the location.</p>
+
+ <p class="footnote"> <a name="footnote_237d-7" id="footnote_237d-7"></a>
+ <a href="#fnanchor_237d-7">[237d-7]</a>
+ According to an English average of 15 years, there is some damage from
+ fire yearly in the following classes of buildings and on the following
+ percentages:</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Fire damage">
+
+<tr><td></td><td class="center"><i>Of the whole number</i>.</td></tr>
+
+<tr><td class="left">Match factories,</td><td class="center">30.00</td></tr>
+
+<tr><td class="left">Lodging houses,</td><td class="center">16.5<span
+class="hidenum">0</span></td></tr>
+
+<tr><td class="left">Hat makers,</td><td class="center"><span
+class="hidenum">0</span>7.7<span class="hidenum">0</span></td></tr>
+
+<tr><td class="left">Cloth makers,</td><td class="center"><span
+class="hidenum">0</span>2.6<span class="hidenum">0</span></td></tr>
+
+<tr><td class="left">Candle makers,</td><td class="center"><span
+class="hidenum">0</span>3.8<span class="hidenum">0</span></td></tr>
+
+<tr><td class="left">Smiths,</td><td class="center"><span class=
+"hidenum">0</span>2.4<span class="hidenum">0</span></td></tr>
+
+<tr><td class="left">Carpenters,</td><td class="center"><span
+class="hidenum">0</span>2.2<span class="hidenum">0</span></td></tr>
+
+<tr><td class="left">Oil and color dealers,</td><td class="center"><span
+class="hidenum">0</span>1.5<span class="hidenum">0</span></td></tr>
+
+<tr><td class="left">Book dealers,</td><td class="center"><span
+class="hidenum">0</span>1.1<span class="hidenum">0</span></td></tr>
+
+<tr><td class="left">Coffee houses,</td><td class="center"><span
+class="hidenum">0</span>1.2<span class="hidenum">0</span></td></tr>
+
+<tr><td class="left">Beer houses,</td><td class="center"><span
+class="hidenum">0</span>1.3<span class="hidenum">0</span></td></tr>
+
+<tr><td class="left">Bakeries,</td><td class="center"><span
+class="hidenum">0</span>0.75</td></tr>
+
+<tr><td class="left">Wine dealers,</td><td class="center"><span
+class="hidenum">0</span>0.61</td></tr>
+
+<tr><td class="left">Small dealers in spices,</td><td class="center">
+<span class="hidenum">0</span>0.34</td></tr>
+
+<tr><td class="left">Eating houses,</td><td class="center"><span
+class="hidenum">0</span>0.86</td></tr>
+
+</table></div>
+
+ <p class="footnote">(Quart. Rev., 1854, 23.) There is indeed a difference
+ in the intensity of these fires. For instance, in inns, there have been a
+ great many; but the damage has been for the most part insignificant.</p>
+
+ <p class="footnote"> <a name="footnote_237d-8" id="footnote_237d-8"></a>
+ <a href="#fnanchor_237d-8">[237d-8]</a>
+ In Paris the houses insured had a value of 2,370,000,000 francs, but the
+ damage from fire amounted to only 0.016 per 1,000! (Dictionn. d'Econ.
+ politique, I, 89.) On an average, the premiums in France amount to 0.85
+ per 1,000. In Prussia, 1867-69 on an average: in the province of Prussia,
+ 9.46 per 1,000; Posen, 3.75; Brandenburg, Berlin not included, 2.82;
+ Pomerania, 2.52; Westphalia, 2.15; Schleswig-Holstein, 2.09; Hanover,
+ 1.99; Silesia, 1.68; Saxony, 1.47; Hesse-Nassau, 1.46; the Rhine country,
+ 1.34; Sigmaringen, 0.56; city of Berlin, 0.28 per 1,000. (Preuss. Statist.
+ Zeitschr., 1871, 289.) How largely a higher civilization tends to arrest
+ the spread of fire by the reason of the great facilities of rendering
+ assistance is shown by the fact that for 100 buildings totally consumed in
+ Posen, in 1837-40, there were 13.4 only injured: in 1866-69, 32 were
+ injured for 100 totally consumed. In Prussian Saxony, 1839-44, 34;
+ 1867-69, 57. (loc. cit., 329.) In Baden, the district called the
+ <i>Seekreis</i> got from the fire-fund, in 1845-49, 80 per cent. more than
+ it contributed to it; the middle Rhine district contributed 37 per cent.
+ more than it received. The Bavarian Reza district, 1828-29, received only
+ 11.4 per cent. for damages, and paid 19 per cent. of all premiums; the
+ Lower Danube district, 10 and 8.8 per cent. (<i>Rau</i>, Lehrbuch, II, §
+ 28, 26.) The city of Leipzig contributed from 1/19 to 1/17 of the
+ insurance paid, 1864-68, to the insurance companies taking risks on real
+ property in the kingdom of Saxony, and received back only from 1/662 to
+ 1/114, although its fire extinguishing institutions cost, in 1870, 26,182
+ thalers. (Official.)</p>
+
+ <p class="footnote"> <a name="footnote_237d-9" id="footnote_237d-9"></a>
+ <a href="#fnanchor_237d-9">[237d-9]</a>
+ Even premium-institutions have frequently very different rates for the
+ same risk, according as they fear greater or less competition, or desire
+ to recommend themselves in a new place, etc. Hence the tricks of the trade
+ with which most of them surround their tariff.</p>
+
+ <p class="footnote"> <a name="footnote_237d-10" id="footnote_237d-10"></a>
+ <a href="#fnanchor_237d-10">[237d-10]</a>
+ In Würtemberg, theaters, powder mills, places where brick and lime are
+ burned, porcelain factories, iron-works, etc. cannot be insured at all. In
+ Calenb-Grubenh. and Bremen-Verden, shingle-roofed houses can be insured
+ only at 2/3 of their real value.</p>
+
+ <p class="footnote"> <a name="footnote_237d-11" id="footnote_237d-11"></a>
+ <a href="#fnanchor_237d-11">[237d-11]</a>
+ Thus, for instance, in the electorate of Mark, each of the four classes of
+ houses bears its own loss alone. To the fourth class, for instance, belong
+ smithies, brick factories, and buildings with steam engines, etc. The
+ Baden law of 1852 puts the same burthen in the same place, upon houses
+ exposed to danger in a greater or lesser degree; but provides for 4
+ classes (<i>Gemeindeclassen</i>) with different rates of contribution, and
+ assigns each <i>Gemeinde</i> every year, according to the relative
+ magnitude of the losses of the previous year, to one of those classes. How
+ risky it is for large cities to confine their insurance, because of the
+ ordinarily small amount of damage to them from fire, only to insurance
+ institutions of their own, is shown by the case of Hamburg in the year
+ 1842, where three joint stock insurance companies could pay only from 75
+ to 80 per cent., and the Bieber Mutual Insurance Company, only 20 per
+ cent.</p>
+
+ <p class="footnote"> <a name="footnote_237d-12" id="footnote_237d-12"></a>
+ <a href="#fnanchor_237d-12">[237d-12]</a>
+ In the case of buildings, the greater risk is generally calculated by
+ correspondingly multiplying the insurance-value, but in case of damage by
+ fire, it is simply made good.</p>
+
+ <p class="footnote"> <a name="footnote_237d-13" id="footnote_237d-13"></a>
+ <a href="#fnanchor_237d-13">[237d-13]</a>
+ In the insurance companies specified by <i>Masius</i>, loc. cit., 176, the
+ aggregate amount of their insurance, stood to the amount necessary to
+ cover it, by means of receipts from premiums, reserve, and joint-stock
+ capital:</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Premium ratio">
+
+<tr><td class="left">In the Leipzig Fire Insurance Company, as</td>
+<td class="left">100:1.87</td></tr>
+
+<tr><td class="left">In the Trieste Fire Insurance Company, as</td>
+<td class="left">100:1.80</td></tr>
+
+<tr><td class="left">In the Elberfeld Fire Insurance Company, as</td>
+<td class="left">100:1.19</td></tr>
+
+<tr><td class="left">In the Aix-Munich Fire Insurance Company, as</td>
+<td class="left">100:1.15</td></tr>
+
+<tr><td class="left">In the Cologne Colonia Fire Insurance Company, as</td>
+<td class="left">100:2.44</td></tr>
+
+<tr><td class="left">In the Karlsruhe Phœnix Fire Insurance Company, as</td>
+<td class="left">100:3.7</td></tr>
+
+<tr><td class="left">In the Berlin Fire insurance Company, as</td>
+<td class="left">100:6.3</td></tr>
+
+<tr><td class="left">In the Gotha, about as<br />&nbsp;&nbsp;(including the four fold after payment
+  note)</td><td class="left">100:2.6</td></tr>
+
+</table></div>
+
+ <p class="footnote">In the same companies the amount of damage and of
+ expense for the last preceding year were, on every 100 thalers, of
+ insurance, 46 pfennigs (1/300 thalers), 44, 29, 48, 67, 55, 35, 42; an
+ average of 45, that is 1½ per 1,000. Besides, much depends on the degree
+ to which the joint-stock capital can be applied. Thus, for instance, in
+ Berlin, on every 1,000 thalers 200 are paid in cash, and a note
+ (<i>Solawechsel</i>) given for the rest, payable in two months after
+ notice. Where the unpaid remaining stock is but a mere book-debt, and may
+ even be evaded by disclaiming the stock itself, it of course affords very
+ little security.</p>
+
+ <p class="footnote"> <a name="footnote_237d-14" id="footnote_237d-14"></a>
+ <a href="#fnanchor_237d-14">[237d-14]</a>
+ Compare <i>Volz.</i> Tübinger Zeitschr. 1847, 349 ff.</p>
+
+ <p class="footnote"> <a name="footnote_237d-15" id="footnote_237d-15"></a>
+ <a href="#fnanchor_237d-15">[237d-15]</a>
+ The preparatory steps towards this ideal were taken long ago. Thus, for
+ instance, the personal-property insurance companies have offered premiums
+ for special merit in extinguishing fires (Calenb.-Grubenh., 1814, § 35),
+ saving things from a burning house is looked after by the agents of
+ personal property insurance companies; compensation is almost universally
+ made not only for the damage done by fire, but also that caused while the
+ fire is being extinguished. The excellent fire-extinguishing institutions
+ of England are maintained by the common action of the insurance companies.
+ There have been complaints, however, that they have shown a preference for
+ insured objects. (Mitth., 1874, 113.)]</p>
+
+
+<p><span class='pagenum'>[Pg 270]</span><br />
+<span class='pagenum'>[Pg 271]</span></p>
+
+<h3 class="p4">BOOK V.</h3>
+
+<h3>ON POPULATION.</h3>
+
+<p><span class='pagenum'>[Pg 272]</span><br />
+<span class='pagenum'>[Pg 273]</span></p>
+
+<h3 class="p4">CHAPTER I.</h3>
+
+<h3>THEORY OF POPULATION.</h3>
+
+<p class="p2 center"><a name="S238"></a>SECTION CCXXXVIII.</p>
+
+<p class="center smaller">INCREASE OF POPULATION IN GENERAL.</p>
+
+<p>That amid the thousand dangers which threaten the existence of the
+individual the species may endure, the Creator has endowed every class of
+organic beings with such reproductive power, and so much pleasure in
+propagating their kind, that if the action of these were entirely
+unrestricted, it would soon fill up the earth.<a name="fnanchor_238-1"
+id="fnanchor_238-1"></a><a href="#footnote_238-1" class=
+"fnanchor">[238-1]</a> In the case of the human race, also, the
+physiological possibility of propagation has very wide limits.<a name=
+"fnanchor_238-2" id="fnanchor_238-2"></a><a href="#footnote_238-2" class=
+"fnanchor">[238-2]</a> It <span class='pagenum'>[Pg 274]</span> would be
+nothing extraordinary that a healthy pair, living in wedlock from the 20th
+to the 42nd year of the woman's life, that is, during the whole time of her
+full capacity to bear children, should rear six children to the age of
+puberty. This would, therefore, suffice to treble the population in a
+single generation; provided that all who had grown up should marry.
+According to Euler,<a name="fnanchor_238-3" id="fnanchor_238-3"></a><a
+href="#footnote_238-3" class="fnanchor">[238-3]</a> when the births were 5
+per cent. and the deaths 2 per cent., the population doubled in not quite
+24 years; when the increase was 2½ per annum, in 28 years; when 2, in 35
+years, and when 1½ per cent. in 47 years.</p>
+
+<p>The United States furnish us with a striking illustration of <span
+class='pagenum'>[Pg 275]</span> this doctrine, and on the grandest scale.
+There the natural increase of the white population, from 1790 to 1840, was
+400.4 per cent.; that is in the first decade 33.9 per cent. of the
+population in 1790; in the second 33.1, in the third 32.1, in the fourth
+30.9, in the fifth 29.6 per cent.<a name= "fnanchor_238-4" id=
+"fnanchor_238-4"></a><a href= "#footnote_238-4" class=
+"fnanchor">[238-4]</a> <a name="fnanchor_238-5" id= "fnanchor_238-5"></a><a
+href="#footnote_238-5" class= "fnanchor">[238-5]</a></p>
+
+ <p class="footnote"> <a name="footnote_238-1" id="footnote_238-1"></a>
+ <a href="#fnanchor_238-1">[238-1]</a>
+ Thus, for instance, the sturgeon can, according to <i>Leuckart</i>,
+ produce 3,000,000 eggs in a year. According to <i>Burdach</i>, the
+ posterity of a pair of rabbits may be over 1,000,000 in four years; and
+ that of a plant-louse, according to <i>Bonnet</i>, over a 1,000,000,000 in
+ a few weeks. The prolificacy of a species of animals is wont to be greater
+ in proportion as the structure-material (<i>Bildungsmaterial</i>) saved
+ within a given time during the course of individual life, is greater, and
+ as material wants during the embryonic period are limited; also
+ (teleologically), in proportion as to the danger the individual is exposed
+ to. Compare <i>Leuckart</i> in <i>R. Wagner's</i> physiolog. Wörterbuch,<a
+ name= "fnanchor_TN62" id= "fnanchor_TN62"></a><a href= "#footnote_TN62"
+ class= "fnanchor">[TN 62]</a> Art. Zeugung. Teleologically,<a name=
+ "fnanchor_TN63" id= "fnanchor_TN63"></a><a href= "#footnote_TN63" class=
+ "fnanchor">[TN 63]</a> <i>Bastiat</i> says: <i>cette surabondance parait
+ calculée partout en raison inverse de la sensibilité, de l'intelligence et
+ de la force avec laquelle chaque espèce résiste à la déstruction</i>.
+ (Harmonies, ch. 16.)</p>
+
+ <p class="footnote"> <a name="footnote_238-2" id="footnote_238-2"></a>
+ <a href="#fnanchor_238-2">[238-2]</a>
+ The researches of modern physiology make it probable that an ovum is
+ detached from the ovaries at each period of healthy menstruation.
+ (<i>Bischoff</i>, Beweis der von der Begattung unabhängigen periodischen
+ Reifung und Lösung der Eier bei den Säugethieren und Menschen, 1844.) It
+ is hardly possible to ascertain how many of these ova are capable of
+ fecundation. Among the animals, on which the greater number of accurate
+ observations have been made, that is in the case of horses, it has been
+ found that, in the two districts of Prussia most favorably conditioned, of
+ 100 mares that had been lined, 63.3 became pregnant, and 53.5 gave birth
+ to live foals; in the rest of the Prussian monarchy, the births were only
+ 46 per cent. Compare <i>Schubert</i>, Staatskunde, VII, 1, 98. In the
+ Belgian <i>haras</i> (places for breeding horses), between 1841 and 1850,
+ about 30 per cent. of the "leaps" proved fruitful, from 2 to 3 per cent.
+ aborted, the rest were either probably or certainly unfruitful.
+ (<i>Horn.</i>, Statist. Gemälde, 171.) In the human species, also, the
+ great number of first-born generated in the first weeks of marriage, bears
+ witness to a high degree of procreative susceptibility.</p>
+
+ <p class="footnote">On the other hand, the healthy male semen ejected
+ during a single act of coition contains innumerable germs, a very few of
+ which are sufficient to produce fecundation. (<i>Leuckart</i>, loc. cit,
+ 907.) According to <i>Oesterlen</i>, Handbuch der medicischen Statistik,
+ 1865, 196, from 10 to 20 per cent. of all marriages were childless. In the
+ United Kingdom, <i>Farr</i>, report on the Census of 1851, estimated that
+ in a population of 27,511,000, there were 1,000,000 childless families,
+ when the term is allowed to embrace widows and widowers as well as married
+ couples.</p>
+
+ <p class="footnote"> <a name="footnote_238-3" id="footnote_238-3"></a>
+ <a href="#fnanchor_238-3">[238-3]</a>
+ See the exhaustive table in <i>Euler</i>, Mémoires de l'Académie de Berlin
+ 1756, in <i>Süssmilch</i>, Göttl. Ordnung, I, § 160. Bridge has
+ constructed the following formula: Log. A = Log. P + n x Log.(1+(m-b)/mb).
+  Here P stands for the actually existing population, 1/m = the ratio
+ between the annual mortality and the number of the living, 1/b, the ratio
+ of the number of annual births to the number of the living, n the number
+ of years, A, the population at the end of three years, the quantity sought
+ for.</p>
+
+ <p class="footnote"> <a name="footnote_238-4" id="footnote_238-4"></a>
+ <a href="#fnanchor_238-4">[238-4]</a>
+ <i>Tucker</i>, Progress of the United States, 89, ff. 98. Here deduction
+ is already made of immigrants and their posterity, who after subtracting
+ the loss by emigration back to the old country, amounted to over
+ 1,000,000. It probably amounted to more yet. If, as <i>Wappäus</i> does
+ (Bevölekerungsstatistik, 1859, I, 93, 122 ff.), we calculate the rate of
+ increase per annum, we have an average during the first decade of 2.89,
+ during the second of 2.83, the third of 2.74, the fourth of 2.52, the
+ seventh of 2.39, the eighth (1860-70) of probably 2.25 per cent. On the
+ still greater ratio of increase in earlier times, see <i>Price</i>,
+ Observations on reversionary Payments, 1769, 4 ed. 1783, I, 282 seq., I,
+ 260.</p>
+
+ <p class="footnote">It was nothing unheard of to see an old man with a
+ living posterity of 100. (<i>Franklin</i>, Observations concerning the
+ Increase of Mankind, and the Peopling of New Countries, 1751.) It is said
+ that in the region about Contendas, in Brazil, there were on from 70 to 80
+ births a mortality of from 3 to 4 per annum (how long?), and an
+ unfortunate birth (<i>unglücklichen</i>) was scarcely ever heard of.
+ Mothers 20 years of age had from 8 to 10 children; and one woman in the
+ fifties had a posterity of 204 living persons. (<i>Spix und Martius</i>,
+ Reise III, 525).</p>
+
+ <p class="footnote"> <a name="footnote_238-5" id="footnote_238-5"></a>
+ <a href="#fnanchor_238-5">[238-5]</a>
+ Immense increase of the Israelites in Egypt. (Genesis 46, 27; Numbers,
+ 1.)</p>
+
+<p class="p2 center"><a name="S239"></a>SECTION CCXXXIX.</p>
+
+<p class="center smaller">LIMITS TO THE INCREASE OF POPULATION.</p>
+
+<p>There is certainly one limit which the increase of no organic being can
+exceed: the limit of the necessary means of subsistence. But, so far as the
+human race is concerned, this notion is somewhat more extensive, inasmuch
+as it embraces besides food, also clothing, shelter, fuel, and a great many
+other goods which are not, indeed, necessary to life, but which are so
+considered.<a name="fnanchor_239-1" id="fnanchor_239-1"></a><a href=
+"#footnote_239-1" class="fnanchor">[239-1]</a> We may illustrate the matter
+by a simple example <span class='pagenum'>[Pg 276]</span> in the rule of
+division. If we take the aggregate of the means of subsistence as a
+dividend, the number of mankind as divisor; then the average share of each
+is the quotient. Where two of these quantities are given, the third may be
+found. Only when the dividend has largely increased can the divisor and
+quotient increase at the same time (prosperous increase of population). If,
+however, the quotient remains unchanged, the increase of the divisor can
+take place only at the expense of the quotient (proletarian increase of
+population).<a name="fnanchor_239-2" id="fnanchor_239-2"></a><a href=
+"#footnote_239-2" class="fnanchor">[239-2]</a> Hence it is to be expected
+that the quantity of the means of subsistence being given and also the
+requirement of each individual, the number of births and the number of
+deaths should condition each other. Where, for instance, the number of
+church livings has not been increased, only as many candidates can marry as
+clergymen who held such livings have died. The greater the average age of
+the latter is, the later do the former marry, in the average, and <i>vice
+versa</i>. And so, in the case of whole nations, when their economic
+consumption and production remain unaltered.<a name="fnanchor_239-3"
+id="fnanchor_239-3"></a><a href="#footnote_239-3" class=
+"fnanchor">[239-3]</a> A basin entirely filled with <span class=
+'pagenum'>[Pg 277]</span> water can be made to contain more only in case it
+is either increased itself, or a means is found to compress its contents.
+Otherwise as much must flow out on the one side as is poured in on the
+other.</p>
+
+<p>And so, everything else remaining stationary, the fruitfulness of
+marriages must, at least in the long run, be in the inverse ratio of their
+frequency. (See § 247.)<a name="fnanchor_239-4" id="fnanchor_239-4"></a><a
+href= "#footnote_239-4" class= "fnanchor">[239-4]</a> <a name=
+"fnanchor_239-5" id= "fnanchor_239-5"></a><a href="#footnote_239-5" class=
+"fnanchor">[239-5]</a></p>
+
+ <p class="footnote"> <a name="footnote_239-1" id="footnote_239-1"></a>
+ <a href="#fnanchor_239-1">[239-1]</a>
+ When it is known that, in the Hebrides, one-third of all the labor of the
+ people has to be employed in procuring combustible material
+ (<i>McCulloch</i>, Statist. Account, I, 319), it will no longer excite
+ surprise that, according to Scotch statistics, some parishes increase in
+ population after coal has been found in them, and others decrease when
+ their turf-beds are exhausted.</p>
+
+ <p class="footnote"> <a name="footnote_239-2" id="footnote_239-2"></a>
+ <a href="#fnanchor_239-2">[239-2]</a>
+ Compare <i>Isaias</i>, 9:3. According to <i>Courcelle-Seneuil</i>, Traité
+ théorique et pratique d'Economie politique, I, 1858, the <i>chiffre
+ nécessaire de la population égal à la somme des revenus de la
+ société</i><a name= "fnanchor_TN64" id= "fnanchor_TN64"></a><a href=
+ "#footnote_TN64" class= "fnanchor">[TN 64]</a> <i>diminuée de la somme des
+ inégalités de consommation et divisée</i><a name= "fnanchor_TN65" id=
+ "fnanchor_TN65"></a><a href= "#footnote_TN65" class= "fnanchor">[TN
+ 65]</a> <i>par le minimum de consommation</i>: P=(R-J)/M.</p>
+
+ <p class="footnote"> <a name="footnote_239-3" id="footnote_239-3"></a>
+ <a href="#fnanchor_239-3">[239-3]</a>
+ Thus <i>Süssmilch</i>, Göttliche Ordnung in den Veränderungen des
+ menschlichen Geschlechts, 1st ed., 1742, 4th ed., 1775, I, 126 ff.,
+ assumes that one marriage a year takes place, on from every 107 to every
+ 113 persons living. On the other hand, 22 Dutch towns gave an average of 1
+ in every 64. This abnormal proportion is very correctly ascribed by
+ <i>Malthus</i>, Principles of Population, II, ch. 4, to the great
+ mortality of those towns: viz., a death for every 22 or 23 persons living,
+ while the average is 1:36. The Swiss, <i>Müret</i>, (in the Mémoires de la
+ Société économique de Berne, 1766, I, 15 ff.), could not help wondering
+ that the villages with the largest average duration of life should be
+ those in which there were fewest births. "So much life-power and yet so
+ few procreative resources!" Here too, <i>Malthus</i>, II, ch. 5, solved
+ the enigma. The question was concerned with Alpine villages with an almost
+ stationary cow-herd business: no one married until one cow-herd cottage
+ had become free; and precisely because the tenants lived so long, the new
+ comers obtained their places so late. Compare <i>d'Ivernois</i>, Enquête<a
+ name= "fnanchor_TN66" id= "fnanchor_TN66"></a><a href= "#footnote_TN66"
+ class= "fnanchor">[TN 66]</a> sur les Causes patentes et occultes<a name=
+ "fnanchor_TN67" id= "fnanchor_TN67"></a><a href= "#footnote_TN67" class=
+ "fnanchor">[TN 67]</a> de la faible Proportion de Naissances à Montreux:
+ yearly 1:46, of the persons living, while the average in all Switzerland
+ was 1:28.</p>
+
+ <p class="footnote">In France according to <i>Quételet</i>, Sur l'Homme,
+ 1835, I, 83 ff., there was:</p>
+
+<div>
+<table class="fn" border="0" cellpadding="5" summary="Marriage children
+deaths">
+
+<tr><td class="center"><i>In number of Departments</i></td>
+<td class="center" colspan="2"><i>One marriage a year for every</i></td>
+<td class="center"><i>Children to a marriage</i></td>
+<td class="center" colspan="2"><i>One death yearly for every</i></td></tr>
+
+<tr><td class="center">&nbsp;4</td>
+<td class="right">110-120</td><td class="center">inhabitants</td>
+<td class="center">3.79</td><td class="right">35.4</td>
+<td class="center">inhabitants</td></tr>
+
+<tr><td class="center">15</td>
+<td class="right">120-130</td><td class="center">"</td>
+<td class="center">3.79</td><td class="right">39.2</td>
+<td class="center">"</td></tr>
+
+<tr><td class="center">23</td>
+<td class="right">130-140</td><td class="center">"</td>
+<td class="center">4.17</td><td class="right">39.0</td>
+<td class="center">"</td></tr>
+
+<tr><td class="center">18</td>
+<td class="right">140-150</td><td class="center">"</td>
+<td class="center">4.36</td><td class="right">40.6</td>
+<td class="center">"</td></tr>
+
+<tr><td class="center">10</td>
+<td class="right">150-160</td><td class="center">"</td>
+<td class="center">4.43</td><td class="right">40.3</td>
+<td class="center">"</td></tr>
+
+<tr><td class="center">&nbsp;9</td>
+<td class="right">160-170</td><td class="center">"</td>
+<td class="center">4.48</td><td class="right">42.7</td>
+<td class="center">"</td></tr>
+
+<tr><td class="center">&nbsp;6</td>
+<td class="right">170 and more</td><td class="center">"</td>
+<td class="center">4.48</td><td class="right">46.4</td>
+<td class="center">"</td></tr>
+
+</table></div>
+
+ <p class="footnote">The two departments of Orne and Finisterre present a
+ very glaring contrast: in the former, one birth per annum on every 44.8
+ (1851 = 51.6), a marriage on every 147.5, a death on every 52.4 (1851 =
+ 54.1) living persons; in the latter, on the contrary, on every 26 (1851 =
+ 29.8), 113.9 and 30.4 (1851 = 34.2). In Namur, the proportions were 30.1,
+ 141, 51.8; in Zeeland, 21.9, 113.2, 28.5. (<i>Quételet</i>, I, 142.) The
+ Mexican province, Guanaxuato, presents the most frightful extreme: one
+ birth per annum on every 16.08 of the population living, and one death in
+ every 19.7. (<i>Quételet</i>, I, 110.)</p>
+
+ <p class="footnote"> <a name="footnote_239-4" id="footnote_239-4"></a>
+ <a href="#fnanchor_239-4">[239-4]</a>
+ Compare even <i>Steuart</i>, Principles, I, ch. 13. <i>Sadler</i>, Law of
+ Population, 1830, II, 514:</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Marriages Children">
+
+<tr><td></td><td></td>
+<td class="center"><i>Marriages per<br />annum on<br />every 10,000<br />
+inhabitants</i></td>
+<td class="center"><i>Children on<br />every 100<br />Marriages</i></td></tr>
+
+<tr><td class="left"><a name="footnote_239-5" id="footnote_239-5"></a>
+<a href="#fnanchor_239-5">[239-5]</a></td>
+<td class="left">In the purely Flemish provinces of Belgium</td>
+<td class="center">128</td><td class="center">481</td></tr>
+
+<tr><td></td><td class="left">In the purely Wallonic provinces of Belgium</td>
+<td class="center">139</td><td class="center">448</td></tr>
+
+<tr><td></td><td class="left">In the mixed provinces of Belgium</td>
+<td class="center">152</td><td class="center">425</td></tr>
+
+<tr><td></td><td class="left">In Holland</td><td class="center">148</td>
+<td class="center">476</td></tr>
+
+<tr><td></td><td class="left">In Lombardy</td><td class="center">166</td>
+<td class="center">489</td></tr>
+
+<tr><td></td><td class="left">In Bohemia</td><td class="center">173</td>
+<td class="center">413</td></tr>
+
+<tr><td></td><td class="left">In the kingdom of Saxony</td>
+<td class="center">170</td><td class="center">410</td></tr>
+
+</table></div>
+
+ <p class="footnote">Compare <i>Horn</i>, Bevölkerungswissenschaftliche
+ Studien, I, 162 ff., 191, 252 ff. In most countries, there is a much
+ larger number of children to a marriage in the rural districts than in the
+ cities; but at the same time, marriages are much less frequent there. In
+ Saxony, however, where the cities show a greater marital productiveness,
+ the rural districts present a large number of marriages. Of the 10
+ countries compared by <i>Wappäus</i>, II, 481 ff., only Prussia and
+ Schleswig are exceptions to the rule.</p>
+
+<p class="p2 center"><a name="S240"></a>SECTION CCXL.<span
+class='pagenum'>[Pg 278]</span></p>
+
+<p class="center smaller">INFLUENCE OF AN INCREASE OF THE MEANS OF
+SUBSISTENCE.</p>
+
+<p>The sexual instinct and the love for children are incentives of such
+universality and power, that an increase of the means of subsistence is
+uniformly<a name= "fnanchor_TN68" id= "fnanchor_TN68"></a><a href=
+"#footnote_TN68" class= "fnanchor">[TN 68]</a> followed by an increase in
+the numbers of mankind. <i>Partout, où deux personnes peuvent vivre
+commodément, il se fait un mariage.</i> (<i>Montesquieu.</i>) Thus after a
+good harvest, the number of marriages and births is wont to considerably
+increase; and conversely to diminish after bad harvests.<a
+name="fnanchor_240-1" id="fnanchor_240-1"></a><a href="#footnote_240-1"
+class="fnanchor">[240-1]</a> <a name= "fnanchor_240-2" id=
+"fnanchor_240-2"></a><a href="#footnote_240-2" class=
+"fnanchor">[240-2]</a> <a name="fnanchor_240-3" id= "fnanchor_240-3"></a>
+<a href="#footnote_240-3" class= "fnanchor">[240-3]</a> In the former case,
+it is rather hope than <span class='pagenum'>[Pg 279]</span> actual
+possession which constitutes the incentive to the founding of new families.
+Hence the greatest increase is not found in connection with the absolutely
+lowest price of corn, but <span class='pagenum'>[Pg 280]</span> with those
+prices which present the most striking contrast to those of a previous bad
+year.<a name="fnanchor_240-4" id="fnanchor_240-4"></a><a href=
+"#footnote_240-4" class="fnanchor">[240-4]</a></p>
+
+<p>The introduction of the potato has promoted the rapid increase of
+population in most countries. Thus, the population of Ireland in 1695, was
+only 1,034,000; in 1654, when the cultivation of the potato became somewhat
+more common it was 2,372,000; in 1805, 5,395,000; in 1823, 6,801,827; in
+1841, 8,175,000. In 1851, after the fearful spread of the potato-rot it
+fell again to 6,515,000.<a name="fnanchor_240-5" id="fnanchor_240-5"></a><a
+href="#footnote_240-5" class="fnanchor">[240-5]</a> In general, every new
+or increasing branch of industry, as soon as it yields a real net product
+is wont to invite an increase of population. Machines, however, have not
+this effect only when they operate to produce rather a more unequal
+division of the national income than an absolute increase of that income.<a
+name="fnanchor_240-6" id="fnanchor_240-6"></a><a href="#footnote_240-6"
+class="fnanchor">[240-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_240-1" id="footnote_240-1"></a>
+ <a href="#fnanchor_240-1">[240-1]</a>
+ That rich food directly increased prolificacy is proved from the fact
+ that, for instance, our domestic animals are much more prolific than wild
+ ones of the same species. Compare <i>Villermé</i>, in the Journ. des
+ Economistes VI, 400 ff. The months richest in conceptions fall universally
+ in the spring, and again in the pleasant season immediately following the
+ harvest. On the other hand, during the seasons of fast in the Catholic
+ church the number of cases of conception is below the average. (Jour. des
+ Econ., 1857, 808).</p>
+
+ <p class="footnote"> <a name="footnote_240-2" id="footnote_240-2"></a>
+ <a href="#fnanchor_240-2">[240-2]</a>
+ Thus the annual mean number of marriages amounted to:</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Mean number marriages">
+
+<tr><td></td><td class="center"><i>Between 1841<br /> and 1850.</i></td>
+<td class="center"><i>In 1847<br />alone.</i></td></tr>
+
+<tr><td class="left">In Saxony,</td><td class="center"><span
+class="hidenum">2</span>15,505</td>
+<td class="center"><span class="hidenum">2</span>14,220</td></tr>
+
+<tr><td class="left">In Holland,</td><td class="center"><span
+class="hidenum">2</span>22,352</td>
+<td class="center"><span class="hidenum">2</span>19,280</td></tr>
+
+<tr><td class="left">In Belgium,</td><td class="center"><span
+class="hidenum">2</span>28,968</td>
+<td class="center"><span class="hidenum">2</span>24,145</td></tr>
+
+<tr><td class="left">In France,</td><td class="center">280,330</td>
+<td class="center">249,797</td></tr>
+
+</table></div>
+
+ <p class="footnote"><i>Horn</i>, loc. cit. I, 167. In the governmental
+ district (<i>Regierungsbezirke</i>) of Düsseldorf, there was in the years
+ of scarcity, 1817 and 1818, one marriage for every 134 and 137 souls; on
+ the other hand, in 1834 and 1835, in every 103 and 105. (<i>Viebahn</i>,
+ I, 120 seq.) In England, the variations in the yearly price of corn are
+ reflected in the variations in the number of yearly marriages. Thus, in
+ 1800, 114 shillings per quarter; 1801, 122 shillings; 1802 (Peace of
+ Amiens), 70 shillings; 1803, 58 shillings. The number of marriages in the
+ four years respectively was 69,851, 67,288, 90,396, 94,379.
+ (<i>Porter</i>, Progress of the Nation, III, ch. 14, 453.)</p>
+
+ <p class="footnote">Similarly in Germany, in 1851, the conclusion of peace
+ increased the number of marriages, and the scarcity of 1817 diminished it.
+ In Prussia, in 1816, there was one marriage for every 88.1 of the
+ population; in 1828, for every 121.4; in 1834 (origin of the great
+ Zollverein), for every 104; in 1855, for every 136.4; in 1858 (hope of a
+ new era), in every 105.9. (<i>v. Viebahn</i>, Statistik des Zollvereins
+ II, 206.)</p>
+
+ <p class="footnote">In Austria, the price of rye was:</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Price of rye">
+
+<tr><td></td><td class="center"><i>Per Metze.</i></td><td class="center">
+<i>No. of Marriages.</i></td></tr>
+
+<tr><td class="left">In 1851,</td><td class="left">2.47 florins</td>
+<td class="left">336,800</td></tr>
+
+<tr><td class="left">In 1852,</td><td class="left">2.11 florins</td><td class="left">316,800</td></tr>
+
+<tr><td class="left">In 1853,</td><td class="left">3.38 florins</td><td class="left">283,400</td></tr>
+
+<tr><td class="left">In 1854,</td><td class="left">4.36 florins</td><td class="left">258,000</td></tr>
+
+<tr><td class="left">In 1855,</td><td class="left">4.43 florins</td><td class="left">245,400 (<i>Czörnig.</i>)</td></tr>
+
+</table></div>
+
+ <p class="footnote">On Sweden, see Wargentin in <i>Malthus</i>, II, ch.
+ 2.</p>
+
+ <p class="footnote">The decreased number of births in consequence of a bad
+ harvest, and <i>vice versa</i>, appears of course only during the
+ following calendar year. Thus, in 1847, as compared with the average of
+ the years 1844 and 1845, there were fewer children born in England by 4
+ per 1,000, in Saxony by 7 per 1,000, in Lombardy by 59, in France by 63,
+ in Prussia by 82, in Belgium by 122, in Holland by 159 per 1,000.
+ (<i>Horn</i>, I, 239 ff.) In Germany, the conscription-years corresponding
+ to the scarcity time, 1816-17, gave a <i>minus</i> of 25 per cent. in many
+ places below the average. (<i>Bernouilli</i>, Populationistik, 219.) In
+ the case of marriage, the relative increase or decrease is still more
+ characteristic, so far as our purpose is concerned, than the absolute
+ increase or decrease. Thus in Belgium, for instance, against 1,000
+ marriages dissolved by death, there were, in 1846, only 971 new ones
+ contracted, and in 1847 only 747; while in 1850 there were 1,500. The
+ falling off in Flanders alone was still greater. Thus, in 1847, there were
+ only 447 marriages contracted for 1,000 dissolved. (<i>Horn</i>, I, 170
+ ff.) However, <i>Berg</i>, using Sweden as an illustration, rightly calls
+ attention to the fact, that the variations in the number of marriages and
+ births is determined in part by the number of adults, that is, of the
+ number of births 20 and more years before. Compare <i>Engel's</i> Statist.
+ Zeitschr., 1869, 7.</p>
+
+ <p class="footnote"> <a name="footnote_240-3" id="footnote_240-3"></a>
+ <a href="#fnanchor_240-3">[240-3]</a>
+ Sometimes, a sudden increase in the frequency of marriages may have very
+ accidental and transitory causes. Thus, for instance, in France in 1813,
+ when the unmarried were so largely conscripted, the number of marriages
+ rose to 387,000, whereas the average of the five previous years was
+ 229,000. (<i>Bernouilli</i>, Populationistik, 103.)</p>
+
+ <p class="footnote"> <a name="footnote_240-4" id="footnote_240-4"></a>
+ <a href="#fnanchor_240-4">[240-4]</a>
+ Thus, for instance, in nearly all countries affected by the movement of
+ 1848, there were, during the last months of that year, an unusually large
+ number of conceptions. (<i>Horn</i>., I, 241 seq.) According to
+ <i>Dieterici</i>, Abh. der Berliner Akademie, 1855, 321 ff., there was one
+ birth a year for the number of persons living.</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Ten year birth average">
+
+<tr><td></td><td class="center"><i>Ten years' average.</i></td>
+<td class="center"><i>1849 alone.</i></td></tr>
+
+<tr><td class="left">In France,</td><td class="center">36.19</td>
+<td class="center">35.79</td></tr>
+
+<tr><td class="left">In Tuscany,</td><td class="center">24.42</td>
+<td class="center">22.82</td></tr>
+
+<tr><td class="left">In Saxony,</td><td class="center">24.51</td>
+<td class="center">23.08</td></tr>
+
+<tr><td class="left">In Prussia,</td><td class="center">25.5<span
+class="hidenum">0</span></td>
+<td class="center">23.62</td></tr>
+
+</table></div>
+
+ <p class="footnote">The great majority of men at that time believed all
+ they liked to believe.</p>
+
+ <p class="footnote"> <a name="footnote_240-5" id="footnote_240-5"></a>
+ <a href="#fnanchor_240-5">[240-5]</a>
+ <i>Marshall</i>, Digest of all Accounts, I, 15. <i>Porter</i>, I, ch. I,
+ 9.</p>
+
+ <p class="footnote"> <a name="footnote_240-6" id="footnote_240-6"></a>
+ <a href="#fnanchor_240-6">[240-6]</a>
+ <i>Wallace</i>, in this respect, places industry far behind agriculture.
+ (On the Numbers of mankind in ancient and modern Times.) The county of
+ Lancashire had, in 1760, that is shortly before the introduction of the
+ great machine industry, 297,000 inhabitants; in 1801, 672,000; in 1831,
+ 1,336,000; in 1861, 2,490,000. Saxony has, in almost every place, a
+ relatively large number of births in proportion as in any locality,
+ commerce and industry preponderate over agriculture, and <i>vice
+ versa</i>. See <i>Engel</i>, Bewegung der Bevölkerung im K. Sachsen, 1854.
+ But this should not be generalized into a universal law. For instance,
+ Prussia and Posen have an average number of births greater than that of
+ the Rhine country and Westphalia. (<i>v. Viebahn</i>, Statistik des L. V,
+ II, 222.)</p>
+
+<p class="p2 center"><a name="S241"></a>SECTION CCXLI.<span
+class='pagenum'>[Pg 281]</span></p>
+
+<p class="center smaller">EFFECT OF WARS ON POPULATION.</p>
+
+<p>We may now understand why it is that only those wars which are
+accompanied by a diminution of the sources of the means of support decrease
+population. The loss in the numbers of mankind produced by wars, hardships,
+etc., would, as a rule, be readily made up for by increased procreation.<a
+name="fnanchor_241-1" id="fnanchor_241-1"></a><a href="#footnote_241-1"
+class="fnanchor">[241-1]</a> Thus, for instance, in Holland, the long
+Spanish war permitted an increase of the population for the reason that the
+national wealth increased at the same time; while the short war with
+Cromwell, which curtailed commerce, caused 3,000 houses in Amsterdam alone
+to remain empty.<a name="fnanchor_241-2" id="fnanchor_241-2"></a><a
+href="#footnote_241-2" class="fnanchor">[241-2]</a> In England and Wales,
+the population increased during the most frightful <span class=
+'pagenum'>[Pg 282]</span> war of modern times, from 8,540,000 in 1790, to
+over 12,000,000 in 1821; in France, from, probably, 26,000,000 or
+27,000,000 in 1791, to 29,217,000 in 1817. England, indeed, was itself
+never the seat of war, and its commerce was increased by the war in some
+directions as much as it was diminished by it in others. France's own
+territory was devastated only in the first and in the last years of the
+war. But the Revolution had, on the whole, once the storms of the Reign of
+Terror were over, not only more equally divided the means of subsistence in
+France, but it had developed them in a higher degree.<a name=
+"fnanchor_241-3" id= "fnanchor_241-3"></a><a href="#footnote_241-3" class=
+"fnanchor">[241-3]</a> <a name="fnanchor_241-4" id= "fnanchor_241-4"></a>
+<a href="#footnote_241-4" class= "fnanchor">[241-4]</a></p>
+
+<p><span class='pagenum'>[Pg 283]</span>It cannot even be unconditionally
+predicated of emigration, that it hinders the increase of population. As
+soon as people have begun to calculate upon emigration, as a resort for
+themselves in case of distress, or upon the emigration of others, by which
+they would be left a larger field for action at home, a number of marriages
+is contracted and a number of children born; which would otherwise not have
+been the case. Most men, especially when young and enamoured, hope for the
+realization of all their wishes. Favorable chances, open to a great number
+of men alike and which every one thinks himself competent to calculate, are
+commonly over-estimated by the majority.<a name="fnanchor_241-5" id=
+"fnanchor_241-5"></a><a href="#footnote_241-5" class=
+"fnanchor">[241-5]</a> (See § 259.)</p>
+
+ <p class="footnote"> <a name="footnote_241-1" id="footnote_241-1"></a>
+ <a href="#fnanchor_241-1">[241-1]</a>
+ The war of 1870-71 cost Germany 44,890 lives. (Preuss. Statist. Ztschr.,
+ 1872, 293.) This number is not quite 20 per cent. of the excess of births
+ (794,206) over deaths (563,065) in Prussia in the year 1865. On the other
+ hand, in from 1856 to 1861 there were 10,000 cases of murder and
+ manslaughter in all Europe, Turkey excepted. (<i>Hausner</i>, Vergl.
+ Statistik, I, 145.) About the end of the last century, it was estimated
+ that about 1,000,000 children were born annually in France.
+ (<i>Necker</i>, Administration des Finances, I, 256.) Of these, about
+ 600,000 outlived their 18th year. (<i>Peuschet</i>, Essai de Statistique,
+ 31.) There were, annually, about 220,000 marriages. Hence the number of
+ the unmarried was increased annually by 80,000 young men, who, according
+ to <i>Peucshet</i> (32), amounted to over 1,450,000. According to this,
+ the number of recruits, per annum, might amount to hundreds of thousands
+ without causing any appreciable diminution in the number of births and
+ marriages. Compare <i>Malthus</i>, Principle of Population, II, ch. 6. On
+ the other hand, long continued wars have the effect of keeping the men
+ physically strongest from marriage, and so to deteriorate the race.</p>
+
+ <p class="footnote"> <a name="footnote_241-2" id="footnote_241-2"></a>
+ <a href="#fnanchor_241-2">[241-2]</a>
+ Richesse de Hollande, I, 149. During the Amsterdam commercial crisis, from
+ 1795 to 1814, there were for every 4 births an average of 7 deaths. So
+ that the population, in 1795, was still 217,000, and in 1815, only
+ 180,000. (<i>Bickes</i>, Bewegung der Bevölkerung Anhang, 28.)</p>
+
+ <p class="footnote"> <a name="footnote_241-3" id="footnote_241-3"></a>
+ <a href="#fnanchor_241-3">[241-3]</a>
+ On the other hand, the population of East Prussia, between 1807 and 1815
+ diminished 14 per cent. (<i>v. Haxthausen</i>, Ländl. Verfassung der
+ Preuss. Monarchie, I, 93.) The battles of the Seven Years' War are said to
+ have consumed 120,000 Russians, 140,000 Austrians, 200,000 Frenchmen,
+ 160,000 Englishmen, Hanoverians, etc., 25,000 Swedes, 28,000 of the troops
+ of the empire, and 180,000 Prussians. Yet the population of Prussia fell
+ off 1,500,000. (<i>Frédéric</i>, Œuvres posthumes, IV, 414; Preuss. Gesch.
+ Friedrich's M., II, 349.) During the Thirty Years' War, the population of
+ Bohemia fell from 3,000,000 to 780,000. (<i>Mailath</i>, Gesch. von
+ Oesterr, III, 455.) Württemberg, according to the military recruiting
+ lists had a population, in 1622, of 300,000 inhabitants. (<i>Spittler</i>,
+ Werke, XII, 34.) In 1641, the population was only 48,000; according to a
+ promotion-speech of <i>J. B. Andreä</i>. But between 1628 and 1650, more
+ than 58,000,000 florins were lost by war contributions, and about
+ 60,000,000 florins by plunder; about 36,000 private houses were in ruins.
+ (<i>Spittler</i>, Württ. Gesch., 254.) On Alsace, Freisingen and
+ Göttingen, see <i>Londorp</i>, Bellum sexenn., II, 563; <i>Zschocke</i>,
+ Bayerische Geschichte, III, 302; <i>Spittler</i>, Hanov. Gesch., II, 37
+ ff., 114. On Germany generally, see <i>R. F. Hanser</i>, Deutschland nach
+ dem dreissigjährigen Kriege, 1862. However, many estimates of the
+ diminution of the population are exaggerated, because it has not been
+ considered that a great part of the men who disappeared in one place fled
+ to another, for the time being more secure. Compare <i>Kius</i> in
+ <i>Hildebrand's</i> Jahrb., 1870, I ff.</p>
+
+ <p class="footnote">The population of Massachusetts increased 8,310
+ yearly, before the War of Independence; during the war, only 1,161,
+ although the enemy scarcely ever entered the country. (<i>Ebeling</i>,
+ Gesch. und Erdbeschreib. der V. Staaten I, 236.) Russia had a mortality
+ during the war years, 1853-55, of 2,272,000, 2,148,000, and 2,541,000; in
+ the years of peace previous, 2,000,000 at most.</p>
+
+ <p class="footnote"> <a name="footnote_241-4" id="footnote_241-4"></a>
+ <a href="#fnanchor_241-4">[241-4]</a>
+ Besides the mere loss of men, war operates destructively on production,
+ since it affects especially the most productive classes as to age, while
+ pestilence, famine, etc., carry off children, old people, and the feeble.
+ Hence, a people's public economy recovers more readily from the last named
+ misfortune than from war.</p>
+
+ <p class="footnote"> <a name="footnote_241-5" id="footnote_241-5"></a>
+ <a href="#fnanchor_241-5">[241-5]</a>
+ Compare <i>Giov. Botero</i>, Della Cause della Grandezza della Città, L.
+ II, and Ragion di Stato, VIII, 95; where colonization is compared to the
+ swarming of bees. <i>W. Raleigh</i>, Discourse of War in general, Works
+ VIII. 257 ff. Similarly <i>Child</i>, Discourse of Trade, 371 ff.
+ <i>Ustariz</i>, Teoria y Practica del Commercio, 1724, ch. 4.
+ <i>Franklin</i>, Observations on the Increase of Mankind, which reminds
+ one of the continued growth of polyps.</p>
+
+<p class="p2 center"><a name="S242"></a>SECTION CCXLII.</p>
+
+<p class="center smaller">COUNTER TENDENCIES TO THE INCREASE OF
+POPULATION.</p>
+
+<p>The extension of economic production is always a labor; the surrender of
+one's ordinary means of subsistence to new comers, a sacrifice; but, on the
+other hand, the procreation of children is a pleasure. Hence it seems to be
+incontestably<a name= "fnanchor_TN69" id= "fnanchor_TN69"></a><a href=
+"#footnote_TN69" class= "fnanchor">[TN 69]</a> true that the powers of
+increase of population, considered from an entirely sensuous point of view,
+tend to go beyond the bounds of the field of food. Malthus gave expression
+to this fact by saying that population had a tendency to increase in a
+geometrical progression, but the means of subsistence, even under the most
+favorable conditions, only in an arithmetical progression.<a name=
+"fnanchor_242-1" id="fnanchor_242-1"></a><a href="#footnote_242-1" class=
+"fnanchor">[242-1]</a> If the word "tendency" be correctly understood in
+the <span class='pagenum'>[Pg 284]</span> sense in which Malthus employed
+it, so that the reality appears as the product of several and partly
+opposite tendencies,<a name= "fnanchor_242-2" id= "fnanchor_242-2"></a> <a
+href= "#footnote_242-2" class= "fnanchor">[242-2]</a> the first half of his
+allegation can scarcely be contested.<a name="fnanchor_242-3"
+id="fnanchor_242-3"></a><a href= "#footnote_242-3" class=
+"fnanchor">[242-3]</a> If a father has three sons, and each of the three
+three in turn, the love of procreation and the power of procreation, all
+being in the normal condition of health, are precisely three times as great
+in the second generation as in the first, and nine times as great in the
+third, etc. The second half of Malthus's principle is more open to doubt.
+If it be true, as has been asserted, that man's means of subsistence
+consist solely of animals and plants, and these, as well as man, increase
+in a geometrical ratio, and usually even with a much larger multiplier, yet
+it is here, surprisingly enough, overlooked that their natural increase is
+interrupted by the consumption of them by man. On the other hand, it is
+true that even raw material, by means of more skillful technic processes (§
+134, 157), and the values by which man ennobles them, may always increase
+in a greater ratio than a merely arithmetical one. (§ 33).<a name=
+"fnanchor_242-4" id= "fnanchor_242-4"></a><a href= "#footnote_242-4" class=
+"fnanchor">[242-4]</a> But, that, in the long run, the means of subsistence
+should keep pace with the extreme of sensuous desire and of physiological
+power, is utterly incredible. Hence, the latter tendency is limited by
+others.</p>
+
+<p>A. And indeed, firstly, by repressive counter-tendencies. As soon as
+there is a larger population in existence than can be supported, the
+surplus population must yield to a mournful necessity; in a favorable case,
+to that of emigration, but usually to hunger, disease and misery
+generally.</p>
+
+<p>"The earth," says Sismondi, "again swallows the children she cannot
+support." It is the weakest especially who are <span class='pagenum'>[Pg
+285]</span> elbowed off the bridge of life, over which we pass from birth
+to the normal death from old age, because there is not room enough on it
+for all. Hence the frightful mortality among the poorer classes and in
+childhood. Now it is the absence of a healthy habitation,<a
+name="fnanchor_242-5" id="fnanchor_242-5"></a><a href="#footnote_242-5"
+class="fnanchor">[242-5]</a> or of proper clothing, or, in the case of
+children, of rational superintendence<a name="fnanchor_242-6"
+id="fnanchor_242-6"></a><a href="#footnote_242-6" class=
+"fnanchor">[242-6]</a> which sows the germs of a thousand diseases; and now
+the absence of proper care, rest etc., which intensifies these diseases.
+Every bad harvest is wont, when its consequences are not alleviated by a
+high and <span class='pagenum'>[Pg 286]</span> healthy civilization, to
+increase mortality. (§ 246, 9). Thus, in Sweden, during the second half of
+the 18th century, the average yearly mortality was = 1:39-40. On the other
+hand, in the bad year 1771 = 1:35.7; 1772 = 1:26.7, and in 1773, as an
+after consequence, 1:19.3. In this last, although it was a fertile year,
+there were only 48 births to every 100 deaths.<a name="fnanchor_242-7"
+id="fnanchor_242-7"></a><a href="#footnote_242-7" class=
+"fnanchor">[242-7]</a> Among nations low down in civilization, the
+repressive counter tendency may assume a very violent character. How many
+cases of murder, human sacrifice, and even war, have been occasioned by
+over-population and famine.</p>
+
+<p>B. Secondly, by preventive counter tendencies.<a name="fnanchor_242-8"
+id="fnanchor_242-8"></a><a href="#footnote_242-8" class=
+"fnanchor">[242-8]</a> The person who believes himself unable to support
+children refrains from begetting them. This, we may call one of the most
+natural of duties. We might even say that the person who begets a child
+which he knows he is not in a condition to support, is guilty of a
+grievous<a name= "fnanchor_TN70" id= "fnanchor_TN70"></a><a href=
+"#footnote_TN70" class= "fnanchor">[TN 70]</a> sin against civil society,
+and of a still more grevious one against his poor child. Strange! To beget
+a child with countless wants, with an immortal soul! That is certainly an
+act the most pregnant with consequences which any ordinary man can perform
+in his life; and yet how thoughtlessly it is performed by the majority!</p>
+
+<p><span class='pagenum'>[Pg 287]</span>This counter-tendency is to be
+found only in the case of man. Plants and animals yield to the sexual
+instinct regardless of everything.<a name="fnanchor_242-9" id=
+"fnanchor_242-9"></a><a href="#footnote_242-9" class=
+"fnanchor">[242-9]</a> Where there is no question whatever of having food
+enough to support children, as is the case with the better-to-do classes,
+the dread of losing the decencies of life, or of "losing caste," acts as a
+preventive<a name="fnanchor_242-10" id="fnanchor_242-10"></a><a
+href="#footnote_242-10" class="fnanchor">[242-10]</a> <a name=
+"fnanchor_242-11" id="fnanchor_242-11"></a><a href="#footnote_242-11"
+class= "fnanchor">[242-11]</a> to the founding <span class='pagenum'>[Pg
+288]</span> a family, or increasing the numbers of one. Unfortunately,
+abstinence from the procreation of children may be exercised not only in
+accordance with the moral law,<a name="fnanchor_242-12" id=
+"fnanchor_242-12"></a><a href="#footnote_242-12" class=
+"fnanchor">[242-12]</a> but also, in contravention of it.<a name=
+"fnanchor_242-13" id="fnanchor_242-13"></a><a href="#footnote_242-13"
+class="fnanchor">[242-13]</a> There is a necessary connection between
+human reason and human freedom and the possibility of misusing them. And it
+is certainly the inevitable fate of man either to place a morally rational
+check on the sexual impulse, or to be forcibly held within the limits of
+the means of subsistence, since they cannot be over-stepped by
+him&mdash;through the agency of vice and misery.<a name="fnanchor_242-14"
+id= "fnanchor_242-14"></a><a href="#footnote_242-14" class=
+"fnanchor">[242-14]</a> <a name="fnanchor_242-15" id="fnanchor_242-15"></a>
+<a href="#footnote_242-15" class= "fnanchor">[242-15]</a></p>
+
+ <p class="footnote"> <a name="footnote_242-1" id="footnote_242-1"></a>
+ <a href="#fnanchor_242-1">[242-1]</a>
+ Principle of Population, I, ch. I. Adam Smith also implicitly held the
+ view that the demand for the means of subsistence is always in advance of
+ them. Wealth of Nat., I, ch. II, pref. and P. I.</p>
+
+ <p class="footnote"> <a name="footnote_242-2" id="footnote_242-2"></a>
+ <a href="#fnanchor_242-2">[242-2]</a>
+ This may be represented by what physicists call the "parallelogram of
+ forces." Compare <i>Senior</i>, Outlines, 47. <i>Malthus'</i> own
+ explanation of "tendency," in his letter at the end of <i>Senior</i>, Two
+ Lectures on Population, 1829.</p>
+
+ <p class="footnote"> <a name="footnote_242-3" id="footnote_242-3"></a>
+ <a href="#fnanchor_242-3">[242-3]</a>
+ On the inaccuracy of the expression, "geometrical progression," in the
+ present case, see <i>Moser</i>, Gesetze des Lebensdauer, 1839, 132.</p>
+
+ <p class="footnote"> <a name="footnote_242-4" id="footnote_242-4"></a>
+ <a href="#fnanchor_242-4">[242-4]</a>
+ <i>Weyland</i>, Principles of Population and Production, 1816, 25 ff.</p>
+
+ <p class="footnote"> <a name="footnote_242-5" id="footnote_242-5"></a>
+ <a href="#fnanchor_242-5">[242-5]</a>
+ In Paris the mortality is greater in the <i>arrondissements</i> in
+ proportion to their poverty, of which the relative numbers of untaxed
+ dwellings afford a criterion. According to this, between 1822 and
+ 1826,</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Nontaxed mortality">
+
+<tr><td class="center"><i>The Arrondissement</i></td>
+<td class="center"><i>Had a yearly population<br />mortality of  1 in
+every</i></td>
+<td class="center"><i>Locations<br />non imposées.</i><a name=
+"fnanchor_TN71" id= "fnanchor_TN71"></a><a href= "#footnote_TN71" class=
+"fnanchor">[TN 71]</a> </td></tr>
+
+<tr><td class="center">II,</td><td
+class="center">71</td><td class="center">0.07</td></tr>
+
+<tr><td class="center">III,</td><td class="center">67</td>
+<td class="center">0.11</td></tr>
+
+<tr><td class="center">I,</td><td class="center">66</td>
+<td class="center">0.11</td></tr>
+
+<tr><td class="center">IV,</td><td class="center">62</td>
+<td class="center">0.15</td></tr>
+
+<tr><td class="center">XI,</td><td class="center">61</td>
+<td class="center">0.19</td></tr>
+
+<tr><td class="center">VI,</td><td class="center">58</td>
+<td class="center">0.21</td></tr>
+
+<tr><td class="center">V,</td><td class="center">64</td>
+<td class="center">0.22</td></tr>
+
+<tr><td class="center">VII,</td><td class="center">59</td>
+<td class="center">0.22</td></tr>
+
+<tr><td class="center">X,</td><td class="center">49</td>
+<td class="center">0.23</td></tr>
+
+<tr><td class="center">IX,</td><td class="center">50</td>
+<td class="center">0.31</td></tr>
+
+<tr><td class="center">VIII,</td><td class="center">46</td>
+<td class="center">0.32</td></tr>
+
+<tr><td class="center">XII,</td><td class="center">44</td>
+<td class="center">0.38</td></tr>
+
+</table></div>
+
+ <p class="footnote"><i>Villermé</i>, in the Journal des Econ., Novbr.
+ 1853. The average house-rent in <i>arrondissement</i> II, amounted to 605
+ francs per annum; in III, to 426; in I, to 498; in IX, to 172; in VIII, to
+ 173; in XII, to 148 francs. Doctor Holland divided all the streets in
+ Manchester into three classes, and each class, in turn, into three
+ sub-classes, according to the qualities of the dwellings. The yearly
+ mortality in I a was 1:51; in I b = 1:45; I c = 36; II a = 1:55; II b =
+ 1:38; III c = 1:25. (Report of Inquiry into the State of large Towns and
+ Populous Districts, 1843.)</p>
+
+ <p class="footnote"> <a name="footnote_242-6" id="footnote_242-6"></a>
+ <a href="#fnanchor_242-6">[242-6]</a>
+ In Prussia, the Jewish population, between 1822 and 1840, increased 34½
+ per cent.; the Christians only 28½ per cent.; although among the Jews
+ there was only one marriage a year in every 139, and one birth in every
+ 28; among the Christians, in every 112 and 25. This is accounted for,
+ mainly by the favorable circumstances that Jewish mothers leave their
+ homes seldomer to work outside, and thereby devote more attention, even in
+ the lower classes, to the care of their children.</p>
+
+ <p class="footnote"> <a name="footnote_242-7" id="footnote_242-7"></a>
+ <a href="#fnanchor_242-7">[242-7]</a>
+ <i>Wappäus</i>, Allg. Bevölkerungsstatistik, I, 315. In Thurgau, in 1815,
+ the mortality was = 2,143, in 1817 = 3,440; in Luzerne, in 1820 = 1,543,
+ in 1817 = 3,511. (<i>Bernouilli</i>, Populationistik, 219.) And so in
+ London between 1601 and 1800, when the five dearest and five cheapest
+ years of each decade are taken together, the aggregate mortality in the
+ dearest was 1,971,076, in the cheapest, 1,830,835. (<i>Farr</i>, in the
+ Statist. Journal, 1846, 163 ff.) The rule did not apply to the time
+ 1801-1820; but it did again to the time 1821-1840 (l. c., 174). Compare
+ <i>Messance</i>, Recherches sur la Population, 311; <i>Roscher</i>,
+ Kornhandel und Theuerungspolitik, 54 ff. When scarcity continues a longer
+ time, the mortality sometimes decreases on account of the largely
+ diminished number of small children. In Lancashire, the number of deaths
+ during the commercial crisis, 1846-47, was 36 per cent. greater than the
+ average of the three last preceding years; in 1857-8 it was 11.9 per cent.
+ greater. (<i>Ausland</i>, 1862, No. 44.)</p>
+
+ <p class="footnote"> <a name="footnote_242-8" id="footnote_242-8"></a>
+ <a href="#fnanchor_242-8">[242-8]</a>
+ <i>Malthus</i> uses the word "preventive check," while he calls the
+ repressive counter-tendencies "positive." <i>R. Mohl</i>,
+ Polizeiwissenschaft, I, 88, speaks of preventive and destructive causes.
+ Anteriorly and subsequently operating causes. (<i>Knapp</i>).</p>
+
+ <p class="footnote"> <a name="footnote_242-9" id="footnote_242-9"></a>
+ <a href="#fnanchor_242-9">[242-9]</a>
+ Hence the infinite productiveness of irrational organisms is limited only
+ by their mutual struggle for the means of support. That which cannot live
+ there dies. "In this case there can be no artificial increase of food, and
+ no prudential restraint from marriage." (<i>Darwin</i>, Origin of species,
+ 4 ed. 1866, 73.) Compare <i>B. Franklin</i>, Observations concerning the
+ Increase of Mankind, § 21. <i>Lamennais</i>, indeed, asserts that no plant
+ and no animal takes away food from any other; that the earth has room for
+ all!</p>
+
+ <p class="footnote"> <a name="footnote_242-10" id="footnote_242-10"></a>
+ <a href="#fnanchor_242-10">[242-10]</a>
+ The rule that population tends to extend everywhere as far as the means of
+ subsistence will permit, <i>Sismondi</i>, N. Principes, VII, ch. 3, has
+ taken occasion to ridicule, basing himself on the example of the
+ Montmorency family. This family has, notoriously, always lived in
+ superabundance, and is, notwithstanding, on the verge of extinction.
+ <i>Sismondi</i> here forgets the relativity of the idea "means of
+ subsistence." Persons occupying an exalted social position not only think
+ that they want more in this respect, but they are wont in forming marriage
+ contracts to use the greatest and frequently exaggerated caution. Hence it
+ is that families of this rank become, relatively speaking, frequently
+ extinct; and, moreover, such a fact is here most frequently taken notice
+ of. <i>Sadler</i>, Law of Population, 1830, infers from the frequent
+ extinction of English noble families, that wealth leads to sterility; and,
+ on the other hand, poverty (but not famine!) to prolificacy; and
+ <i>Doubleday's</i> (True Law of Population, 12 ff.) suggestion, in
+ explanation hereof, that over-fed animals and over-manured plants are
+ sterile, as ably refuted in the Edinburg Rev., LI. It is there shown that
+ the marriages of the English peers are fruitful above the average; that
+ their extinction is partly due to the fact that the younger sons seldom
+ married, and that hence there is a lack of collateral relations. But, in
+ great part, such extinction is only apparent; since such a family is said
+ to be extinct when only the male stem is extinct. The French nobility,
+ from the 9th to the 11th century, continually increased in number. After
+ this, the succession of females and cases of extinction became more
+ frequent, because the nobility, in order to keep their estates together,
+ began to not desire many sons. <i>Sismondi</i>, Hist. des Français, V,
+ 182. Compare <i>Benoiston de Châteauneuf</i>,<a name= "fnanchor_TN72" id=
+ "fnanchor_TN72"></a><a href= "#footnote_TN72" class= "fnanchor">[TN
+ 72]</a> De la Durée des Familles<a name= "fnanchor_TN73" id=
+ "fnanchor_TN73"></a><a href= "#footnote_TN32" class= "fnanchor">[TN
+ 73]</a> nobles en France, in the proceedings of the Académie des Sciences
+ morales et politiques, II, 792 ff. Besides, between 1611 and 1819, 763
+ English baronet families became actually extinct, 653 continued to exist,
+ and 139 had been raised to the peerage; an average of from 3 to 4 peer
+ families became extinct yearly. (Statist. Journal, 1869, 224.) There were,
+ about 1569 2,219 Venetian <i>nobili</i>; in 1581, 1,843 (<i>Daru</i>, VI,
+ 240 ff.); in Addison's time (1705), only 1,500. On the decrease of the
+ Roman patricians, see <i>Dionys.</i>, Hal., I, 85; <i>Tacit.</i>, Ann.,
+ XI, 25; on that of the Spartan knights: <i>Clinton</i>, Fasti Hellenici,
+ II, 407 ff.; of the <i>ehrbaren Geschlechter</i>, at Nürnberg:
+ <i>Hegel</i>, N. Stadtchroniken, 1862, 214. Compare, also, Westminster
+ Rev., Oct., 1849.</p>
+
+ <p class="footnote"> <a name="footnote_242-11" id="footnote_242-11"></a>
+ <a href="#fnanchor_242-11">[242-11]</a>
+ How, in England, not only many distinguished persons, but also their
+ servants, are kept from marriage in this way, because they are sure of not
+ being able to satisfy the wants of their bachelorhood as fathers of
+ families, see in <i>Malthus</i>, P. of P., II, ch. 8. A description of the
+ general misery which would result if all men consumed only that which was
+ physically indispensable, in <i>Senior</i>, Outlines, 39.</p>
+
+ <p class="footnote"> <a name="footnote_242-12" id="footnote_242-12"></a>
+ <a href="#fnanchor_242-12">[242-12]</a>
+ See <i>Bastiat's</i> beautiful words, in which he characterizes the holy
+ ignorance of children, the modesty of young maidens, the severity of
+ public opinion, etc., as a law of limitation: (Harmonies, 437 seq.)</p>
+
+ <p class="footnote"> <a name="footnote_242-13" id="footnote_242-13"></a>
+ <a href="#fnanchor_242-13">[242-13]</a>
+ Compare <i>Proudhon</i>, Contradictions, ch. 13.</p>
+
+ <p class="footnote"> <a name="footnote_242-14" id="footnote_242-14"></a>
+ <a href="#fnanchor_242-14">[242-14]</a>
+ That want of employment or of business has rather a preventive tendency,
+ see <i>Malthus</i>, Principle of Population, VII, ch. 14.</p>
+
+ <p class="footnote"> <a name="footnote_242-15" id="footnote_242-15"></a>
+ <a href="#fnanchor_242-15">[242-15]</a>
+ <i>Malthus</i>, P. of P., II, ch. 13. I formerly called this natural law
+ by the name of the investigator who earned the largest share of scientific
+ merit in connection therewith. It cannot, indeed, be said, that he was the
+ first to observe it. Compare even <i>Machiavelli</i>, Discorsi (between
+ 1515 and 1518), II, 5. And so <i>Giovanni Botero</i> taught that the
+ number of the population depended not so much on the number of
+ <i>congiungimenti</i> so much as on the rearing of children. (Ragion di
+ Stato, 1592, VII, 93 ff.) The <i>virtù generativa degli uomini</i>, which
+ is always the same, is found face to face with the <i>virtù nutritiva
+ delle citta</i>. The former would continue to operate <i>ad infinitum</i>,
+ if the latter did not limit it. The larger a city is, the more difficult
+ it is to provide it with the means of subsistence. In the last instance,
+ the slave-sales of Guinea, the cannibalism of the Indians, the
+ robber-system of the Arabians and the Tartars, the migration of nations,
+ crimes, litigation, etc., are traced back to the narrowness of the means
+ of subsistence. (Delle Cause della Grandezza delle Città, 1598, Libr.
+ III.) Sir Walter Raleigh (ob. 1618), was of opinion that the earth would
+ not only be full but overflowing with human beings were it not that
+ hunger, pestilence, crime, war, abstinence welcome sterility, etc. did
+ away with the surplus population. (History of the World, I, ch. 8, 4.
+ Discourse of war: Works, VII, 257 ff.) According to <i>Child</i>,
+ Discourse of Trade, 371 ff., 149, the population is always in proportion
+ to the amount of employment.</p>
+
+ <p class="footnote">If England could employ only 100 men while 150 were
+ reared, 50 would have to emigrate or perish; and so, too, conversely,
+ occasional vacancies would soon be filled. Similarly <i>Davenaut</i>,
+ Works II, 233, 185; who, however, in the practical application of this law
+ of nature, adopts the error of his contemporary, G. King, the
+ statistician, according to whom the population of England would increase
+ to 11,000,000 (II, 176) only after 600 years. <i>Benjamin Franklin's</i>
+ Observations Concerning the Increase of Mankind, Peopling of new
+ Countries, etc., 1751, are very good. Franklin here shows that the same
+ tables of mortality do not apply to town and country, nor to old nations
+ and new ones. The nation increases more rapidly in proportion as it is
+ easy to contract marriage. Hence the increase is smallest in luxurious
+ cities and thickly populated countries. Other circumstances, being equal,
+ hunting nations require the largest quantity of land for the purpose of
+ subsistence, and industrial nations least. In Europe, there was a marriage
+ in every 100 of the population per annum; in America, on every 50; 4
+ children to a marriage in the former, and 8 in the latter.</p>
+
+ <p class="footnote">Population diminishes as a consequence of subjugation,
+ bad government, the introduction of slavery, loss of territory, loss of
+ trade and food. He who promotes the opposite advantages may well be called
+ the "father of his country." Further, <i>D. Hume</i>, Of the Populousness
+ of the Ancient Nations: Discourses No. 10. <i>Per contra, Wallace</i>, On
+ the Numbers of Mankind in Ancient and Modern Times, in which the superior
+ populousness of antiquity is maintained, 1753. <i>Wallace</i> relied
+ chiefly on the more equable distribution of land, and the smaller luxury
+ of the ancient nations. <i>Herbert</i>, Essai sur le Police des Grains
+ (1755), 319 ff. Les Intérêts de la France mal entendus, par un Citoyen
+ (Amsterd., 1757), I, 197.</p>
+
+ <p class="footnote"><i>Steuart</i> threw light especially on the
+ connection between mortality and the number of marriages (Principles, I,
+ 13); and he claims, with the utmost confidence, that only the want of the
+ means of subsistence, using the expression in its broadest sense (I, 15),
+ can put a limit to the increase of population (I, 14). He calls wrongful
+ procreation (<i>falsche Zeugung</i>) the chief cause of pauperism (II, 1),
+ and his views on public charity have a strong Malthusian complexion (I,
+ 14). Compare further <i>A. Young</i>, Political Arithmetics (1774), I, ch.
+ 7. <i>Townsend</i>, Dissertation on the Poor Laws (1786), makes a happy
+ use of the example of the Island of Juan Fernandez, in which a colony of
+ goats was developed, first alone, and afterwards in a struggle with a
+ colony of dogs, to illustrate the laws of the development of population as
+ limited by the supply of food. Compare the same author's Journey through
+ Spain, II, 8 seq.; 358 ff., III, 107. <i>G. M. Ortes</i>, Riflessioni
+ sulla Popolazione,<a name= "fnanchor_TN74" id= "fnanchor_TN74"></a><a
+ href= "#footnote_TN74" class= "fnanchor">[TN 74]</a> delle Nazione per
+ rapporto all'Economia nazionale, 1790, ascribes geometrical progression to
+ the increase of population (cap. I) precisely as in the case of other
+ animals; only, in the case of the latter, a limit is put to their increase
+ by <i>forza</i>, and in the case of man, by <i>ragione</i>. When the
+ population of a country has attained its proper development, celibacy is
+ as necessary in order to keep it so as marriage. Otherwise the door would
+ be opened to extreme pauperism, to the debauchery of the "venus vaga," to
+ eunuchism and polygamy (4). Strangely enough, <i>Ortes</i> asserts that no
+ people are richer per capita than any other. The distribution of wealth
+ among the apparently richer, operates to make individuals heap wealth
+ together in greater quantities (8).</p>
+
+ <p class="footnote"><i>Malthus</i> himself wrote his classical work under
+ the influence of a very intelligible reaction (1st ed., 1798; 2d ed.,
+ 1803). For a whole generation, the European public had had no other view
+ broached but that the tree of human kind might keep on growing even until
+ it reached the heavens, if care were only taken to manure the ground, to
+ water the roots and prune the branches according to the latest
+ world-improving recipes. <i>Malthus</i>, in opposition thereto, called
+ attention to the limits placed by nature to the number of mankind. He
+ demonstrated that it was not merely arbitrary laws which opposed the
+ Utopian happiness of all, but in part the niggardliness of nature; and in
+ greater part the passions and sins of men themselves. If he sometimes
+ described the limits as narrower than they really are, and if an
+ occasional coarse expression escaped him, we need not wonder. His polemic
+ was well founded, and he was at the time still a young man (born 1766, ob.
+ 1834). He modified much in the later editions of his work. For instance,
+ he stopped the unsavory sentence in which he says that a man born into the
+ world already occupied, whose family cannot support him, and whose labor
+ society does not need, has not the smallest right to demand the smallest
+ particle of food, and is really superfluous in the world; that there is no
+ place for him at the great banquet of nature; that nature bids him go
+ hence and does not hesitate herself to execute the command. <i>P.
+ Leroux</i> in a small pamphlet in answer to <i>Malthus</i>, quotes this
+ sentence at least forty times. Moreover, <i>Möser</i>, who certainly is
+ not considered a misanthrope, was not only acquainted with the Malthusian
+ law, but develops it in words, and with consequences which strongly recall
+ the very words which raised such a storm against <i>Malthus</i>. Compare
+ Patr. Phant. I, 42; II, 1; IV, 15 (against vaccination); V, 26.</p>
+
+ <p class="footnote">The opinions of political economists in our own day
+ are, as might be expected, divided on some of Malthus' expressions and on
+ his practical counsels. He has indeed but few such one-sided followers as
+ <i>Th. Chalmers</i>, On Political Economy in Connexion with the moral
+ State and moral Prospects of Society, 1832. Malthus' fundamental views,
+ however, are truly scientific. (Κτῆμα ἐς ἀεὶ!<a name= "fnanchor_TN75" id=
+ "fnanchor_TN75"></a><a href= "#footnote_TN75" class= "fnanchor">[TN
+ 75]</a>) Compare <i>Baudrillart</i>, Manuel, 424 seq., and <i>A
+ Walker</i>, Science of Wealth, who strangely enough (452) opposes Malthus,
+ and yet is (458) virtually of the same opinion. Even the better class of
+ socialists base themselves on the same view, without, however, thanking
+ Malthus for it. Thus for instance, <i>K. Marlo</i>, System der
+ Weltökonomie (1848, 52), passim. For an excellent history of the theory of
+ population, see <i>R. Mohl</i>, Gesch. und Literatur der
+ Staatswissenschaften, III, 409 ff. (1858).</p>
+
+<p class="p2 center"><a name="S243"></a>SECTION CCXLIII.<span
+class='pagenum'>[Pg 289]</span></p>
+
+<p class="center smaller">OPPONENTS OF MALTHUS.</p>
+
+<p>Of Malthus' opponents, John Stuart Mill has said, that a confused notion
+of the causes which, at most times and places, <span class='pagenum'>[Pg
+290]</span> keep the actual increase of mankind so far behind their
+capacity for increase, has every now and then given birth to some ephemeral
+theory, speedily forgotten; as if the law of the increase of population
+were a different one under different circumstances, and as if the fecundity
+of the human species, <span class='pagenum'>[Pg 291]</span> by direct
+divine decree, was in keeping with the wants of society for the time
+being.<a name="fnanchor_243-1" id="fnanchor_243-1"></a><a href=
+"#footnote_243-1" class="fnanchor">[243-1]</a></p>
+
+<p>The majority of such theories are based, on the proof that Malthus'
+description of one stage of civilization is not true of another, although
+the great discoverer, who, with his admirable many-sidedness, had
+investigated the law of population in and throughout all the stages of
+civilization, had, as a rule, himself given due weight to all of this. The
+objection of unwarranted generalization applies to Malthus much less than
+to the majority of his opponents. Since, for instance, in young colonies,
+even the natural forces, which are in themselves limited or exhaustible,
+afford a wide field of operation for a long time; many American writers
+have supposed that labor alone was the source of wealth, and that, to say
+the least, wealth should increase in the same ratio as mankind; and even in
+a still greater ratio, since the division of labor grows easier as
+population increases in density.<a name="fnanchor_243-2"
+id="fnanchor_243-2"></a><a href="#footnote_243-2" class=
+"fnanchor">[243-2]</a> But here it is forgotten <span class= 'pagenum'>[Pg
+292]</span> that in every instance of economic production, there are many
+factors engaged, each one of which can take the place of another only up to
+a certain point. There are others, especially Grahame and Carey,<a
+name="fnanchor_243-3" id="fnanchor_243-3"></a><a href="#footnote_243-3"
+class="fnanchor">[243-3]</a> who allude to the possibility of emigration,
+which is still so far from being exhausted. But Malthus had nothing to say
+of the impossibility of emigration. He spoke only of the great difficulties
+in its way. (III. ch. 4.) There are many writers who would wish simply to
+ship emigrants off, like a great many doctors who send their patients away
+to die! (§ 259 ff.) When Sadler says that human prolificacy, circumstances
+remaining the same, is inversely as the density of population, he uses, to
+say the least, a very inaccurate mode of expression.<a
+name="fnanchor_243-4" id="fnanchor_243-4"></a><a href="#footnote_243-4"
+class="fnanchor">[243-4]</a> The grain of truth <span class='pagenum'>[Pg
+293]</span> hidden in this assertion does certainly not come from Gray's
+theory, that in the higher stages of civilization, the better living usual
+is a hinderance to the increase of population, and that the prevailing
+influence of large cities increases mortality;<a name="fnanchor_243-5"
+id="fnanchor_243-5"></a><a href="#footnote_243-5" class=
+"fnanchor">[243-5]</a> but from influences, or, to speak more correctly,
+from free human considerations, on which no one has thrown so much light as
+Malthus. And indeed, where is the man who has better understood or more
+warmly recommended the "aristocratic" impulse which should, in well ordered
+civil society, hold the sexual instinct in equilibrium?<a
+name="fnanchor_243-6" id="fnanchor_243-6"></a><a href= "#footnote_243-6"
+class="fnanchor">[243-6]</a> Malthus himself pleasantly derides his
+opponents, who, to explain how the same rifle, charged with the same powder
+and provided with the same ball, produces an effect varying with the nature
+of the object at which it is fired, prefer, instead of calculating the
+force of resistance of the latter, to take refuge in a mysterious faculty
+by virtue of which the powder has a different explosive force, according to
+the greater or less resistance the ball meets when it strikes.<a
+name="fnanchor_243-7" id="fnanchor_243-7"></a><a href="#footnote_243-7"
+class="fnanchor">[243-7]</a> The peculiarity of Godwin's polemics may be
+inferred from the fact that he considered it very doubtful <span
+class='pagenum'>[Pg 294]</span> whether the population of England had
+increased during the four preceding generations; and that he traces the
+increase of the population of the United States to the influence of
+emigration almost exclusively, and allows the desertion of whole English
+regiments in 1812 ff. to play a part in accounting for that increase.<a
+name="fnanchor_243-8" id="fnanchor_243-8"></a><a href="#footnote_243-8"
+class="fnanchor">[243-8]</a></p>
+
+<p>Malthus has been accused of rejoicing over the evils which are wont to
+decimate surplus population; but the same charge might be brought against
+those physicians who trace the diseases back to the causes that produce
+them. He has also been branded as the enemy of the lower classes, spite of
+the fact that he is the very first who took a scientific interest in their
+prosperity.<a name="fnanchor_243-9" id="fnanchor_243-9"></a><a href=
+"#footnote_243-9" class="fnanchor">[243-9]</a> As John Stuart Mill has
+said, the idea that all human progress must at last end in misery was so
+far from Malthus' mind, that it can be thoroughly combated only by carrying
+Malthus' principles into practice.<a name="fnanchor_243-10" id=
+"fnanchor_243-10"></a><a href="#footnote_243-10" class=
+"fnanchor">[243-10]</a></p>
+
+ <p class="footnote"> <a name="footnote_243-1" id="footnote_243-1"></a>
+ <a href="#fnanchor_243-1">[243-1]</a>
+ <i>J. S. Mill</i>, Principles I, ch. 10.</p>
+
+ <p class="footnote"> <a name="footnote_243-2" id="footnote_243-2"></a>
+ <a href="#fnanchor_243-2">[243-2]</a>
+ <i>Everett</i>, New ideas on population, with remarks on the theories of
+ Malthus and Goodwin, 1823. Similarly <i>Carey</i>, Principles of Social
+ Science, I, 88 ff., who, with a "natural philosophical" generalization,
+ shows that the more the matter existing on the earth takes the form of
+ men, the greater becomes the power of the latter to give direction to
+ natural forces with an ever accelerated movement. So also <i>Fontenay</i>,
+ in the Journal des Economistes, Oct., 1850, says: <i>un nombre de
+ travailleurs doublé produit plus du double et ne consomme pas le double de
+ ce que produisaient et consommaient les travailleurs de l'époque
+ précédente</i>. Even <i>Bastiat</i> inclines to the same over-estimation
+ of one factor of production. He promises in the introduction to his
+ Harmonies économiques to prove the proposition: <i>toutes choses égales
+ d'ailleurs, la densité croissante de population équivaut à une facilité
+ croissante de production</i>. (Absolutely it is true, but whether
+ relatively, quære.)</p>
+
+ <p class="footnote"> <a name="footnote_243-3" id="footnote_243-3"></a>
+ <a href="#fnanchor_243-3">[243-3]</a>
+ <i>Grahame</i>, Inquiry into the Principle of Population, 1816;
+ <i>Carey</i>, Rate of Wages, 236 ff.</p>
+
+ <p class="footnote"> <a name="footnote_243-4" id="footnote_243-4"></a>
+ <a href="#fnanchor_243-4">[243-4]</a>
+ Varies inversely as their numbers: <i>M. Th. Sadler</i>, The Law of
+ Population, a treatise in Disproof of the Superfecundity of human Beings,
+ and developing the real Principles of their Increase, III, 1830. There
+ were, for instance<span style="white-space:nowrap;">&mdash;</span></p>
+
+<table class="fn" border="0" cellpadding="5"
+summary="Inhabitants to children">
+
+<tr><td></td><td class="center"><i>Inhabitants per<br />English sq.
+mile</i></td><td class="center"><i>Number of children<br />to a
+marriage</i></td></tr>
+
+<tr><td class="left">The Cape</td><td class="center"><span
+class="hidenum">00</span>1</td><td class="center">5.48</td></tr>
+
+<tr><td class="left">The United States</td><td class="center"><span
+class="hidenum">00</span>4</td><td class="center">5.22</td></tr>
+
+<tr><td class="left">Russia in Europe</td><td class="center"><span
+class="hidenum">0</span>23</td><td class="center">4.94</td></tr>
+
+<tr><td class="left">Denmark</td><td class="center"><span
+class="hidenum">0</span>73</td><td class="center">4.98</td></tr>
+
+<tr><td class="left">Prussia</td><td class="center">100</td>
+<td class="center">4.70</td></tr>
+
+<tr><td class="left">France</td><td class="center">150</td>
+<td class="center">4.22</td></tr>
+
+<tr><td class="left">England</td><td class="center">160</td>
+<td class="center">3.66</td></tr>
+
+</table>
+
+ <p class="footnote">Most of these figures are very uncertain; and even if
+ they were true, they would afford a very bad proof of his assertion.
+ Besides, <i>Sadler</i> was one of those extreme tories who resorted almost
+ to Jacobin measures in opposition to the reforms advocated by Huskisson,
+ Peel and Wellington. Like Sadler, <i>A. Guillard</i>, Eléments de
+ Statistique humaine ou Démographie comparée, 1855. But, for instance, in
+ Saxony, population has for a long time increased most rapidly, in those
+ places where it is already densest. Compare <i>Engel,</i> loc. cit. The
+ five German kingdoms and Mecklenburg-Strelitz hold the same relative rank,
+ on a ten-year average, in relation to the number of births that they do to
+ density of population, (<i>v. Viehbahn</i>, Statistik des Z. V., II, 321
+ seq.)</p>
+
+ <p class="footnote"> <a name="footnote_243-5" id="footnote_243-5"></a>
+ <a href="#fnanchor_243-5">[243-5]</a>
+ <i>Gray</i>, The Happiness of States, or an Inquiry concerning Population,
+ 1875. <i>Weyland</i>, Principles of Population and Production, 1816, had
+ already ascribed to industry in itself a tendency to make the increase of
+ Population less rapid!</p>
+
+ <p class="footnote"> <a name="footnote_243-6" id="footnote_243-6"></a>
+ <a href="#fnanchor_243-6">[243-6]</a>
+ Compare <i>Rossi</i>, Cours d'Economie politique, I, 303 ff.</p>
+
+ <p class="footnote"> <a name="footnote_243-7" id="footnote_243-7"></a>
+ <a href="#fnanchor_243-7">[243-7]</a>
+ <i>Malthus</i>, Principle of Population, V, ch. 3. Thus <i>J. B. Say</i>
+ asks those population-mystics: if in thickly populated countries the power
+ of procreation diminishes of itself, how comes it that even here the
+ extraordinary<a name= "fnanchor_TN76" id= "fnanchor_TN76"></a><a href=
+ "#footnote_TN76" class= "fnanchor">[TN 76]</a> voids made by pestilence,
+ etc. are so rapidly filled up?</p>
+
+ <p class="footnote"> <a name="footnote_243-8" id="footnote_243-8"></a>
+ <a href="#fnanchor_243-8">[243-8]</a>
+ <i>Godwin</i>, Inquiry concerning the Power of Increase in the Numbers of
+ Mankind, III, 1821; III, ch. IV. Compare the same socialistic writer's
+ essay: Inquiry concerning public Justice (II, 1793), which in part
+ provoked Malthus' book. <i>David Booth</i> (in Godwin's first book) had
+ the misfortune to ridicule Malthus by comparing his law with the law of
+ gravitation, which he said did not freely operate in nature and was
+ undemonstrable in space void of air! From a better point of view, Bastiat
+ says of Malthus' traducers, that they might as well blame Newton when they
+ were injured by a fall.</p>
+
+ <p class="footnote"> <a name="footnote_243-9" id="footnote_243-9"></a>
+ <a href="#fnanchor_243-9">[243-9]</a>
+ Principle of Population, III, ch. 13. His moral severity in other respects
+ is apparent especially in IV, ch. 13, towards the end.</p>
+
+ <p class="footnote"> <a name="footnote_243-10" id="footnote_243-10"></a>
+ <a href="#fnanchor_243-10">[243-10]</a>
+ Every good family takes care of their children even before their birth.
+ How far from practical is the view that the means of subsistence come as a
+ matter of course, provided only that men are here before them!</p>
+
+<p><span class='pagenum'>[Pg 295]</span></p>
+
+<h3 class="p4">CHAPTER II.</h3>
+
+<h3>HISTORY OF POPULATION.</h3>
+
+<p class="p4 center"><a name="S244"></a>SECTION CCXLIV.</p>
+
+<p class="center smaller">HISTORY OF POPULATION.&mdash;UNCIVILIZED TIMES.</p>
+
+<p>In the case of those wild tribes which can only use the forces of nature
+by way of occupation, the small extent of the field of food is filled up by
+even a very sparse population. And the principal means by which population
+is there limited are the following: the overburthening and ill treatment of
+the women,<a name= "fnanchor_244-1" id= "fnanchor_244-1"></a><a
+href="#footnote_244-1" class="fnanchor">[244-1]</a> by which the
+simultaneous rearing of several small children is rendered impossible;<a
+name="fnanchor_244-2" id="fnanchor_244-2"></a><a href= "#footnote_244-2"
+class="fnanchor">[244-2]</a> the inordinately long time <span
+class='pagenum'>[Pg 296]</span> that children are kept at the breast;<a
+name="fnanchor_244-3" id="fnanchor_244-3"></a><a href= "#footnote_244-3"
+class="fnanchor">[244-3]</a> the wide-spread practice of abortion;<a
+name="fnanchor_244-4" id="fnanchor_244-4"></a><a href= "#footnote_244-4"
+class="fnanchor">[244-4]</a> numerous cases of murder, especially of the
+old and weak;<a name= "fnanchor_244-5" id= "fnanchor_244-5"></a><a
+href="#footnote_244-5" class="fnanchor">[244-5]</a> everlasting war carried
+on by hunting nations to extend their hunting territory, found in
+conjunction with cannibalism in many tribes.<a name="fnanchor_244-6"
+id= "fnanchor_244-6"></a><a href= "#footnote_244-6" class=
+"fnanchor">[244-6]</a> Besides, nations of hunters are frequently decimated
+by famine and pestilence, the latter <span class='pagenum'>[Pg 297]</span>
+generally a consequence of never-ending alternation between gluttony and
+famine.<a name= "fnanchor_244-7" id= "fnanchor_244-7"></a><a href=
+"#footnote_244-7" class="fnanchor">[244-7]</a></p>
+
+<p>Most negro nations live in such a state of legal insecurity that it is
+impossible for a higher civilization with its attendant increase of the
+means of subsistence to take root among them. At the same time, their
+sexual impulses are very strong.<a name="fnanchor_244-8" id=
+"fnanchor_244-8"></a><a href="#footnote_244-8" class=
+"fnanchor">[244-8]</a> Here the slave-trade constituted the chief
+preventive of over-population. If this traffic were suppressed simply and
+no care taken through the instrumentality of commerce and of missions to
+improve the moral and economical condition of the negroes, the only
+probable but questionable gain would be that the prisoners made in the
+numberless wars generated by famine would be murdered instead of being
+sold.</p>
+
+<p>Nomadic races, with their universal chivalry, are wont to treat their
+women well enough to enable them bear children without any great
+hardship.<a name= "fnanchor_244-9" id= "fnanchor_244-9"></a><a
+href="#footnote_244-9" class="fnanchor">[244-9]</a> But the mere use of
+natural pasturage can never be carried to great intensity. The transition
+to agriculture with its greater yield of food but with the diminished
+freedom by which it is accompanied is a thing to which these warlike men
+are so averse that it directs the surplus population by the way of
+emigration into neighboring civilized countries, where they either obtain
+victory, booty and supremacy, or are rapidly subjugated. Such migrations
+<span class='pagenum'>[Pg 298]</span> are a standing chapter in the history
+of all Asiatic kingdoms; they for a long time disturb declining civilized
+states, finally conquering them, and begin the same cycle in the new
+kingdom.<a name= "fnanchor_244-10" id= "fnanchor_244-10"></a><a
+href="#footnote_244-10" class="fnanchor">[244-10]</a> Where nomadic races
+see themselves cut off from such migrations their marriages are wont to be
+unfruitful.<a name= "fnanchor_244-11" id= "fnanchor_244-11"></a><a
+href="#footnote_244-11" class="fnanchor">[244-11]</a></p>
+
+ <p class="footnote"> <a name="footnote_244-1" id="footnote_244-1"></a>
+ <a href="#fnanchor_244-1">[244-1]</a>
+ In New Holland they are beaten by their husbands even on the day of their
+ confinement. Their heads are sometimes covered with countless scars.
+ <i>Collins</i> says that for mere pity one might wish a young woman there
+ death rather than marriage. (Account of N. S. Wales, 560 ff.) South
+ American Indian women actually kill their daughters, with a view of
+ improving the condition of women. (<i>Azara</i>, Reisen in S. Amerika, II,
+ 63.) How the women among the aboriginal inhabitants of North America were
+ oppressed is best illustrated by the absence of ornaments among the women,
+ while the men were very gaudily decked, and carried small hand-mirrors
+ with them. (<i>Prinz Neuwied</i>, N. A. Reise, II, 108 seq.) The early
+ decay of female beauty among all barbarous nations is related to the
+ ill-treatment they receive.</p>
+
+ <p class="footnote"> <a name="footnote_244-2" id="footnote_244-2"></a>
+ <a href="#fnanchor_244-2">[244-2]</a>
+ The custom of killing one of twins immediately after birth or of burying a
+ child at the breast with its mother, prevails extensively among savage
+ nations. On New Holland, see <i>Collins</i>, 362; on North America,
+ Lettres édifiantes, IX, 140; on the Hottentots, <i>Kolb</i>, I, 144.</p>
+
+ <p class="footnote"> <a name="footnote_244-3" id="footnote_244-3"></a>
+ <a href="#fnanchor_244-3">[244-3]</a>
+ In many Indian tribes, children are kept at the breast until their fifth
+ year. (<i>Klemm</i>, Kulturgeschichte I, 236; II, 85.) Among the
+ Greenlanders, until the third or fourth year (<i>Klemm</i>, I, 208); among
+ the Laplanders and Tonguses, likewise (<i>Klemm</i>, III, 57); among the
+ Mongols and Kalmucks, longer yet. (<i>Klemm</i>, III, 171.)</p>
+
+ <p class="footnote"> <a name="footnote_244-4" id="footnote_244-4"></a>
+ <a href="#fnanchor_244-4">[244-4]</a>
+ The New Hollanders have a special word to express the killing of the fœtus
+ by pressure. (<i>Collins.</i>) Among certain of the Brazilian tribes, this
+ is performed by every woman until her 30th year; and in many more the
+ custom prevails for a woman when she becomes pregnant to fast, or to be
+ frequently bled. (<i>Spix und Martius</i>, Reise, I, 261.) Compare
+ <i>Azara.</i>, II, 79.</p>
+
+ <p class="footnote"> <a name="footnote_244-5" id="footnote_244-5"></a>
+ <a href="#fnanchor_244-5">[244-5]</a>
+ On the Bushmen, see <i>Barrow</i>, Journey in Africa, 379 ff.; on the
+ Hottentots, among whom even the wealthy aged are killed by exposure, see
+ <i>Kolb</i>, Caput bonæ Spei, 1719, I, 321; on the Scandinavian, old
+ Germans,<a name= "fnanchor_TN77" id= "fnanchor_TN77"></a><a href=
+ "#footnote_TN77" class= "fnanchor">[TN 77]</a> Wendes, Prussians,
+ <i>Grimm</i>, D. Rechtsalterthümer, 486 ff.; on the most ancient Romans,
+ <i>Cicero</i>, pro Rosc. Amer, 35, and Festus v. Depontani, Sexagenarios;
+ on Ceos, <i>Strabo</i>, X, 486; on the ancient Indians, <i>Herodot.</i>,
+ III, 38, 99; on the Massagetes, <i>Herodot.</i>, I, 216; on the Caspians,
+ <i>Strabo</i>, XI, 517, 520. Touching picture of an old man abandoned in
+ the desert, unable to follow his tribe compelled to emigrate for want of
+ food: <i>Catlin</i>, N. American Indians, I, 216 ff. We here see how the
+ killing of helpless old people may be considered a blessing among many
+ nations. Death is also sometimes desired by reason of superstition. For
+ instance, the Figians think that after death they will continue to live of
+ the same age as that at which they died. (<i>Williams</i>, Figi and the
+ Figians, I, 183.) The Germans who died of disease did not get to Walhalla!
+ (<i>W. Wackernagel</i>, Kl. Schriften, I, 16.)</p>
+
+ <p class="footnote"> <a name="footnote_244-6" id="footnote_244-6"></a>
+ <a href="#fnanchor_244-6">[244-6]</a>
+ On the frightful cannibalism practiced on the upper Nile, see
+ <i>Schweinfurth</i> in <i>Petermann's</i> geogr. Mettheilungen, IV, 138,
+ seq. Australian women seldom outlive their 30th year. <i>Lubbock</i>,
+ Prehistoric Times, 449. Many are eaten by the men as soon as they begin to
+ get old. (Transactions of the Ethnolog. Society, New Series, III, 248.) A
+ chief of Figi Islands who died recently had eaten 872 men in his lifetime.
+ <i>Lawry</i>, Visit to the Friendly and Fejee Islands, 1850. Even the more
+ highly civilized<a name= "fnanchor_TN78" id= "fnanchor_TN78"></a><a href=
+ "#footnote_TN78" class= "fnanchor">[TN 78]</a> Mexicans had preserved this
+ abomination. According to <i>Gomara</i>, Cronica de la N. Espana, 229,
+ there were here from 20,000 to 25,000 human sacrifices a year; according
+ to <i>Torquemada</i>, Indiana, VII, 21, even 20,000 children a year. <i>B.
+ Diaz</i>, on the other hand, puts the number down at 2,500 only. Compare
+ <i>Klemm</i>, Kulturgeschichte, V, 103, 207, 216.</p>
+
+ <p class="footnote"> <a name="footnote_244-7" id="footnote_244-7"></a>
+ <a href="#fnanchor_244-7">[244-7]</a>
+ The usual coldness, so much spoken of, of the Indians, seems to have an
+ economic rather than a physiological cause. At least, it has also been
+ observed among the Hottentots. (<i>Levillant</i>, Voyage, I, 12 seq.), and
+ under favorable economic conditions the Indians have sometimes increased
+ very rapidly. (Lettres édifiantes, VIII, 243.) Whether the practice in
+ vogue among the Botocuds to carry the organ of generation continually in a
+ rather narrow envelope, or that among the Patachos of lacing the foreskin
+ with the tendrils of a plant, is not a "preventive check," quære. Compare
+ <i>Prinz Neuwied</i>, Bras. Reise, II, 10; I, 226.</p>
+
+ <p class="footnote"> <a name="footnote_244-8" id="footnote_244-8"></a>
+ <a href="#fnanchor_244-8">[244-8]</a>
+ On the gold coast, people become fathers in their 12th year even, and
+ mothers at 10. (<i>Ritter</i>, Erdkunde, I, 313.) In the whole of the
+ Soudan the climate is so exciting that the intercourse of the sexes is
+ said to be a "physical necessity," and an unmarried man of eighteen is
+ universally despised. But, indeed, the individual is little valued in
+ Africa, on account of the great prolificacy of the African race.
+ (<i>Ritter</i>, I, 385.)</p>
+
+ <p class="footnote"> <a name="footnote_244-9" id="footnote_244-9"></a>
+ <a href="#fnanchor_244-9">[244-9]</a>
+ <i>Herodot.</i>, IV, 26.</p>
+
+ <p class="footnote"> <a name="footnote_244-10" id="footnote_244-10"></a>
+ <a href="#fnanchor_244-10">[244-10]</a>
+ Compare <i>Machiavelli</i>, at the beginning of his Istoria Fiorentina.
+ The migration of the Germani is accounted for simply by the family and
+ marriage relations of the Germans, which necessarily favored prolificacy:
+ <i>Severa matrimonia ... singulis uxoribus contenti sunt ... septae
+ pudicitia ... paucissima adulteria ... publicatae pudicitiae nulla venia
+ ... nemo vitia ridet ... numerum liberorum finire, flagitium habetur ...
+ sua quemque mater uberibus alit ... sera juverum Venus eoque inexhausta
+ pubertas ... quanto plus propinquorum, tanto gratiosior senectus.</i>
+ <i>Tacit.</i>, Germ., 14. Entirely similar in character were the
+ migrations of the Normans, which lasted just as long as the resistance to
+ the countries they would invade, seemed to them a matter of less
+ difficulty than the transition to a higher civilization in their own
+ country. <i>Malthus</i> has corrected the extravagant notions concerning
+ the former density of population in the North&mdash;the <i>vagina
+ nationum</i>, according to Jornandes! (<i>Malthus</i>, I, ch. 6.) Compare,
+ however, <i>Friedrich M.</i>, in Antimachiavel, ch. 21, and the later
+ view: Ouevres, IX, 196.</p>
+
+ <p class="footnote"> <a name="footnote_244-11" id="footnote_244-11"></a>
+ <a href="#fnanchor_244-11">[244-11]</a>
+ Among the Bedouins even three children are considered a large family; and
+ they even complain of that number. (<i>Burckhardt.</i>)</p>
+
+<p class="p2 center"><a name="S245"></a>SECTION CCXLV.</p>
+
+<p class="center smaller">INFLUENCE OF A COMMUNITY OF WOMEN AND POLYGAMY.</p>
+
+<p>Most barbarous nations live very unchaste;<a name="fnanchor_245-1"
+id="fnanchor_245-1"></a><a href="#footnote_245-1" class=
+"fnanchor">[245-1]</a> so that, as Tacitus observes, the ancient Germans
+were a brilliant exception to the rule.<a name="fnanchor_245-2" id=
+"fnanchor_245-2"></a><a href=" #footnote_245-2" class=
+"fnanchor">[245-2]</a> Vices of unchastity always limit the otherwise <span
+class='pagenum'>[Pg 299]</span> natural increase of population. Premature
+enjoyment exhausts the sources of fruitfulness in the case of many.<a
+name="fnanchor_245-3" id="fnanchor_245-3"></a><a href="#footnote_245-3"
+class="fnanchor">[245-3]</a> The life of the child conceived in sin is
+generally little valued by its parents. Hence the numerous instances of
+exposure and infanticide.<a name= "fnanchor_245-4" id=
+"fnanchor_245-4"></a><a href= "#footnote_245-4" class=
+"fnanchor">[245-4]</a> We have already seen how closely, psychologically
+speaking, a community of goods is allied to a community of women. (§ 85.)
+And, indeed, in the lower stages of civilization, we find as close an
+approximation to the latter as to the former; and it is difficult to
+believe that, among men living in a state of nudity, the marriage of one
+man to one woman could properly exist.<a name="fnanchor_245-5"
+id="fnanchor_245-5"></a><a href="#footnote_245-5"
+class="fnanchor">[245-5]</a> But it is as little possible to reconcile
+<span class='pagenum'>[Pg 300]</span> a community of women with density of
+population as great national wealth with a community of goods. Any one
+acquainted with the condition and capacities of new born children knows
+that the weak little flame easily goes out when not nursed by family
+care.<a name="fnanchor_245-6" id="fnanchor_245-6"></a><a href=
+"#footnote_245-6" class="fnanchor">[245-6]</a></p>
+
+<p>Polygamy also is a hinderance to the increase of population. Abstract
+physiology must, indeed, admit that a man may, even without any danger to
+his health, generate more children <span class='pagenum'>[Pg 301]</span>
+than a woman can bear.<a name="fnanchor_245-7" id="fnanchor_245-7"></a><a
+href="#footnote_245-7" class="fnanchor">[245-7]</a> But, in reality, the
+simultaneous enjoyment of several women leads to excess and early
+exhaustion;<a name="fnanchor_245-8" id="fnanchor_245-8"></a><a href=
+"#footnote_245-8" class="fnanchor">[245-8]</a> and if one of them is
+married after the other, the older who might still bear children for a long
+time are neglected by the man.<a name= "fnanchor_245-9" id=
+"fnanchor_245-9"></a><a href= "#footnote_245-9" class=
+"fnanchor">[245-9]</a> Monogamy is, doubtless, the Creator's law, since
+only in monogamous countries can we expect to find the intimate union of
+family life, the beauties of social intercourse and free citizenship.<a
+name="fnanchor_245-10" id="fnanchor_245-10"></a><a href= "#footnote_245-10"
+class="fnanchor">[245-10]</a> "God made them male and female."<a name=
+"fnanchor_245-11" id="fnanchor_245-11"></a><a href= "#footnote_245-11"
+class= "fnanchor">[245-11]</a> And yet in all countries with which we are
+statistically acquainted, there is a somewhat larger number of boys than of
+girls born;<a name="fnanchor_245-12" id= "fnanchor_245-12"></a><a href=
+"#footnote_245-12" class="fnanchor">[245-12]</a> but this excess is removed
+by the time <span class='pagenum'>[Pg 302]</span> that puberty sets in, by
+reason of the greater mortality of boys. Only extraordinary conditions
+which thin the ranks of males, such as war and emigration, leave a
+preponderance of the number of women.<a name="fnanchor_245-13" id=
+"fnanchor_245-13"></a><a href= "#footnote_245-13" class=
+"fnanchor">[245-13]</a> Hence, among barbarous nations, who live in
+everlasting strife (§§ 67, 70), polygamy is very generally established. Men
+are seldom deterred therefrom by a solicitude concerning what they shall
+eat, since the women are treated as slaves, and rather support the men than
+are supported by them.<a name= "fnanchor_245-14" id=
+"fnanchor_245-14"></a><a href= "#footnote_245-14" class=
+"fnanchor">[245-14]</a> But in the civilized countries of the east, the
+polygamy of the great may actually lead to the compulsory singleness of
+many of the lower classes, as a species of compensation.<a name=
+"fnanchor_245-15" id= "fnanchor_245-15"></a><a href= "#footnote_245-15"
+class= "fnanchor">[245-15]</a> The monstrous institution of eunuchism,
+<span class='pagenum'>[Pg 303]</span> which has existed time out of mind in
+the east, is a consequence of this condition of things as well as of the
+natural jealousy of the harem.<a name= "fnanchor_245-16" id=
+"fnanchor_245-16"></a><a href= "#footnote_245-16"
+class="fnanchor">[245-16]</a></p>
+
+ <p class="footnote"> <a name="footnote_245-1" id="footnote_245-1"></a>
+ <a href="#fnanchor_245-1">[245-1]</a>
+ Impurity of the Kamtschatdales, bordering on a community of women.
+ (<i>Klemm</i>, Kulturgeschichte, I, 287 ff., 350 ff.; II, 206, 297 seq.)
+ On Lapland, see <i>Klemm</i>, III, 55. In their purely nomadic period,
+ even the Getes, afterwards remarkable for their noble character
+ (<i>Horat.</i>, Carm., III, 24), have had very loose relations of the
+ sexes. (<i>Menander</i>, in <i>Strabo</i>, VII, 297.)</p>
+
+ <p class="footnote"> <a name="footnote_245-2" id="footnote_245-2"></a>
+ <a href="#fnanchor_245-2">[245-2]</a>
+ Very unlike the Celts: <i>Strabo</i>, IV, 199. But the Germans even at the
+ time when the compensation system alone prevailed, imposed a disgraceful
+ death on the <i>corpore infames. (Tacit.</i>, Germ., 12.) In keeping with
+ this purity of the Germans was the deep gravity and the genuine heartiness
+ of their ancient nuptial ceremonies. (<i>Tacit.</i>, Germ., 18.)
+ Similarly, in England throughout the middle ages. (<i>Lappenberg</i>,
+ Engl., Gesch. I, 596.) Great moral severity of the Scandinavians
+ (<i>Weinhold</i>, Altnord. Leben, 255), so that the gratification of the
+ sexual appetite outside of marriage was punishable with death. (<i>Adam
+ Brem.</i>, IV, 6, 21.)</p>
+
+ <p class="footnote"> <a name="footnote_245-3" id="footnote_245-3"></a>
+ <a href="#fnanchor_245-3">[245-3]</a>
+ Abuse of young girls in New Holland (<i>Collins</i>, 563); among the
+ American aborigines (<i>Charlevoix</i>, Histoire de la N. France, III,
+ 304; Lettres édifiantes, VII, 20 ff.); among the negroes (<i>Buffon</i>,
+ Histoire naturelle de l'Homme, VI, 255).</p>
+
+ <p class="footnote"> <a name="footnote_245-4" id="footnote_245-4"></a>
+ <a href="#fnanchor_245-4">[245-4]</a>
+ Infanticide in Kamtschatka, <i>Klemm</i>, I, 349.</p>
+
+ <p class="footnote"> <a name="footnote_245-5" id="footnote_245-5"></a>
+ <a href="#fnanchor_245-5">[245-5]</a>
+ In most mythical histories, the institutions of property and of marriage
+ are ascribed to the same name (Menes Cecrops, the Athenian Thesmophories.)
+ Among the Indian tribes of Terra Firma, the exchange of wives and the
+ <i>jus primæ noctis</i> of the chiefs are very common. (<i>Depons</i>
+ Voyage, I, 304, ff.) In North America, the Indians are very eager to rent
+ out their wives for a glass of brandy. (<i>Prinz Neuwied</i>, N. A. Reise,
+ I, 572 seq.) Compare <i>Lewis</i> and <i>Clarke</i>, Travels to the Source
+ of the Missouri and the Pacific Ocean, 1804-1806. Almost always on
+ entering a higher age-class it is one of<a name= "fnanchor_TN79" id=
+ "fnanchor_TN79"></a><a href= "#footnote_TN79" class= "fnanchor">[TN
+ 79]</a> the principal conditions to leave one's wife for a time to the
+ more distinguished. On feast days, prayer days, etc., the women give
+ themselves publicly up to vice; and this can be commuted only by a gift.
+ (<i>Prinz Neuwied</i>, I, 129 ff., 272.) Community of women in California.
+ (<i>Bagert</i>, Nachrichten von der Halbinsel C. 1772.) In many of the
+ South Sea Islands, the youth of the higher classes were wont to form
+ themselves into so-called <i>arreyo-societies</i>, the object of which was
+ the most unlimited intercourse of the sexes (a pair being united generally
+ only from 2 to 3 days), and the murder of the new born children. The girls
+ principally were murdered, and hence the missionaries at Otaheite (New
+ Cytheria) found only 1/5 as many women as men. <i>Chaque femme semble être
+ la femme de tous les hommes chaque homme le mari de toutes les femmes.</i>
+ (<i>Marchand</i>, I, 122.) The many governing queens here are
+ characteristic. Compare <i>Forster</i>, Reise II, 100, 128;
+ <i>Kotzebue</i>, Reise, III, 119; European Magazine, June, 1806;
+ <i>Reybaud</i>, Voyages, et marines, 128, and the quotations in
+ <i>Klemm</i>, Kulturgesch., IV, 307.</p>
+
+ <p class="footnote">Similar customs are found among the nomads. The
+ Bedouins dissolve their marriages so easily that a man forty-five years
+ old had 50 wives; family secrets are a thing unknown there.
+ (<i>Burckhardt</i>, Notes on the Bedouins, 64; Travels app. II, 448;
+ <i>Ritter</i>, Erdkunde, XII, 205, 211, 983.) On the Libyans, see
+ <i>Herodot.</i>, IV, 168, 172, 186, 180: on the Massagetes,
+ <i>Herodot.</i>, I, 216; on the Taprobanes, <i>Diod.</i>, II, 58; on the
+ Troglodytes, <i>Pomp, Mella.</i>, I, 8, <i>Agatharch</i>, 30. Community of
+ women among the ancient Britons, <i>Caesar</i>, B. G. V, 14 seq.; also
+ among the naked, tatooed Caledonians, <i>Dio Cass.</i>, LXXVI, 12;
+ probably also among the cannibal Irish. <i>Strabo</i>, IV, 201. Great
+ laxity of the marriage tie in Moelmud's laws of Wales, (<i>Palgrave</i>,
+ Rise and Progress of the English Commonwealth, I, 458 ff.) in which
+ country a species of tenure in common of land and servants was customary.
+ (<i>Wachsmuth</i>, Europ. Sittengesch. II, 225.) In Russia, in very
+ ancient times, only the Polanes had real marriages. (<i>Nestor v.
+ Schlözer</i>, I, 125 seq.) Something very analogous even among the
+ Spartans: same education for boys and girls, admittance for men to the
+ female gymnasiums; marriage in the form of an abduction, and afterwards
+ fornication. (<i>Xenoph.</i>, De rep. Laced. I, 6: <i>Plutarch</i>,
+ Lycurg. 15.) Adultery tolerated by law in countless cases.
+ (<i>Xenoph.</i>, II, 7 ff.; <i>St. John</i>, The Hellenes, I, 394.)
+ History of the origin of the so-called Partheniæ; <i>Strabo</i>, VI, 279.
+ (<i>Supra</i>, § 83.) The custom which prevails among so many barbarous
+ nations to designate one's progeny by the name of the mother,
+ <i>Sanchoniathan</i> traces to the licentiousness of women. (p. 16,
+ Orell.) Traces of this also in Egypt: <i>Schmidt</i>, Papyrusurkunden, 321
+ ff. Avunculus means little grand-father. Many proofs which <i>Peschel</i>,
+ Völkerkunde, 243 seq. explains otherwise, but which seem to me to point to
+ an original community of wives.</p>
+
+ <p class="footnote"> <a name="footnote_245-6" id="footnote_245-6"></a>
+ <a href="#fnanchor_245-6">[245-6]</a>
+ The relation existing between the so-called organization of labor (§ 82)
+ and a community of wealth is repeated in the relation of a community of
+ wives to the situation in Dahomey, where every man has to purchase his
+ wife from the king. <i>Gumprecht</i>, Afrika, 196. Similarly among the
+ Incas: <i>Prescott</i>, Hist. of Peru, I, 159. Even the sale of wives is a
+ step in advance as compared with a community of wives (§ 67 seq).</p>
+
+ <p class="footnote"> <a name="footnote_245-7" id="footnote_245-7"></a>
+ <a href="#fnanchor_245-7">[245-7]</a>
+ It is said that a German prince of the 18th century had 352 natural
+ children. (<i>Dohm</i>, Denkwürdigkeiten, IV, 67.) Feth Ali, shah of
+ Persia, had made 49 of his own sons provincial governors, and he had
+ besides 140 daughters. (<i>Ker Porter</i>, II, 508.)</p>
+
+ <p class="footnote"> <a name="footnote_245-8" id="footnote_245-8"></a>
+ <a href="#fnanchor_245-8">[245-8]</a>
+ Turkish married men are frequently impotent at the age of 30.
+ (<i>Volney</i>, Voyage dans la Turquie, II, 445.) Similarly in Arabia.
+ (<i>Niebuhr,</i> Beschreibung, 74.) The use of aphrodisiac means very
+ wide-spread in the East. According to <i>Niebuhr</i> (76), monogamous
+ marriages produced absolutely more children than polygamous. Compare <i>G.
+ Botero</i>, Ragion di Stato, VIII, 93 ff.; <i>Montesquieu</i>, Lettres
+ Persanes,<a name= "fnanchor_TN80" id= "fnanchor_TN80"></a><a href=
+ "#footnote_TN80" class= "fnanchor">[TN 80]</a> N., 114; <i>Süssmilch</i>,
+ Göttl. Ordnung, I, Kap., 11. On the other hand, <i>Th. L. Lau</i>,
+ Aufrichtiger Vorschlag von ... Einrichtung der Intraden (1719), 6,
+ recommends the allowing of polygamy as a means of increasing
+ population.</p>
+
+ <p class="footnote"> <a name="footnote_245-9" id="footnote_245-9"></a>
+ <a href="#fnanchor_245-9">[245-9]</a>
+ Rehoboam had 18 wives and 60 concubines, and only 88 children (II Chron.,
+ 11, 21); that is not much more than one child by each.</p>
+
+ <p class="footnote"> <a name="footnote_245-10" id="footnote_245-10"></a>
+ <a href="#fnanchor_245-10">[245-10]</a>
+ The high esteem for woman requisite to true love seems to be almost
+ irreconcilable with polygamy. The wife stands to the husband in the
+ relation of a mistress; and, in reference to the latter, fidelity has
+ scarcely any meaning. The husband also has no confidence in his wife; and
+ hence the seclusion of the harem. But the domestic tyrant is easily made
+ the slave of a higher power. And what becomes of fraternal love with the
+ half-brother feeling of children of different mothers?</p>
+
+ <p class="footnote"> <a name="footnote_245-11" id="footnote_245-11"></a>
+ <a href="#fnanchor_245-11">[245-11]</a>
+ Genesis 1, 27; 5, 12; 7, 13.</p>
+
+ <p class="footnote"> <a name="footnote_245-12" id="footnote_245-12"></a>
+ <a href="#fnanchor_245-12">[245-12]</a>
+ Compare <i>J. Graunt</i>, Natural and Political Observations on the Bills
+ of Mortality (1662). During the course of the 19th century, according to
+ averages made from long series of years, there were, for every 1,000 girls
+ born alive in Lombardy, 1,070 boys; in Bohemia, 1,062; in France, 1,058;
+ in Holland, 1,057; in Saxony, 1,056; in Belgium, 1,052; in England, 1,050;
+ in Prussia,<a name= "fnanchor_TN81" id= "fnanchor_TN81"></a><a href=
+ "#footnote_TN81" class= "fnanchor">[TN 81]</a> 1,048. On the whole, the
+ ratio in 70,000,000 children born alive was as 100 : 105.83. The excess of
+ males over females in bastards is smaller than in the case of legitimate
+ children, in towns than in the country. Everything considered, the number
+ of boys born seems to be greater than the number of girls in proportion as
+ the father is in advance of his wife in years. Compare <i>Sadler</i>, Law
+ of Population, II, 343. <i>Hofacker</i>, Ueber die Eigenschaften die sich
+ vererben, 51 ff. <i>Wappäus</i>, Allg. Bevölkerungstatistik, II, 151, 160
+ ff., 306 ff. <i>Per contra</i>, we have <i>Legoyt's</i> supposition that
+ the number of boys born is greater in proportion as the parents are more
+ nearly of an age: Statistique comparée, 500.</p>
+
+ <p class="footnote"> <a name="footnote_245-13" id="footnote_245-13"></a>
+ <a href="#fnanchor_245-13">[245-13]</a>
+ According to the censuses between 1856 and 1861, there are for every 1,000
+ men in Belgium 994 women; in Austria, 1,004; in Prussia, 1,004; in France,
+ 1,001; in England, 1,039; in Holland, 1,038. The majority of the latter
+ seems to have diminished everywhere the greater the distance in time from
+ the most recent great wars; and to belong only to those age-classes which
+ were coeval with those wars. (Preuss. amtliche Tabellen für 1849, I, 292.)
+ In the United States there were, 1800-1844, for every 1,000 women,
+ 1,033-1,050 men; mainly accounted for by large immigration. Between 1819
+ and 1855 the immigration was 2,713,391 men and 1,720,305 women. (<i>W.
+ Bromwell</i>, History of Immigration to the United States, New York,
+ 1856.) In Switzerland, among the population belonging to the cantons,
+ there were for every 1,000 men, 1,038 women; among the foreign Swiss, 970;
+ among foreigners, 650. (<i>Bernouilli</i>, Populationistik, 31.) Compare
+ <i>Horn</i>, loc. cit., I, 105 ff., who supposes a natural principle of
+ equilibrium: the <b>greater</b> the preponderance of the number of women,
+ the more does it happen that only the younger women are married; the
+ greater consequently the difference between the ages of the married
+ couple, and the more probable the birth of boys, and <i>vice versa</i>.
+ (115 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_245-14" id="footnote_245-14"></a>
+ <a href="#fnanchor_245-14">[245-14]</a>
+ Compare <i>Catlin</i>, N. American Indians, I, 118 ff. Even Strabo
+ believed that among the Median mountaineers each man had five wives! (XI,
+ 526.)</p>
+
+ <p class="footnote"> <a name="footnote_245-15" id="footnote_245-15"></a>
+ <a href="#fnanchor_245-15">[245-15]</a>
+ Concerning Solomon's 700 wives and 300 concubines, see I Kings, 11, 3;
+ according to the Canticle of Canticles, only 60 wives and 80 concubines.
+ According to <i>Mirkhond</i> and <i>Khondemir</i>, there was in the place
+ in which the Sassand shah resided, 3,000 women of the harem and 12,000
+ female slaves. Polygamy among the latter class is seldom possible or
+ thought of. Of 2,800 Moslems in Bombay, only 100 lived in polygamy, and
+ only 5 had three wives each. (<i>Ritter</i>, Erdkunde, 1088.) I lay no
+ weight here on the assertion so frequently repeated of travelers in the
+ east, that more girls than boys are born there; for the reason that there
+ is there no real statistics, and that the infidel travelers can be
+ permitted few glimpses into the secrecy of family life. <i>Lady Sheil</i>
+ indeed assures us that in Persia itself the opinion prevails that there
+ are a great many more women than men. Glimpses of Life and Manners in
+ Persia, 1855. Similar pretense among the Mormons.</p>
+
+ <p class="footnote"> <a name="footnote_245-16" id="footnote_245-16"></a>
+ <a href="#fnanchor_245-16">[245-16]</a>
+ We find, even on Egyptian temples, pictures representing the castration of
+ prisoners. <i>Franck</i>, in the Mémoires sur l'Egypte, IV, 126. On
+ Babylon, see <i>Hellanicus</i>, apud. Donat. ad Terent. Eunuch., I, 2, 87.
+ This province, besides Assyria (the ancient seat of sultan glory),
+ delivered 500 castrated boys per annum to the king of Persia.
+ (<i>Herodot.</i>, III, 92.) Of the califs, Soliman is said to be the first
+ (at the beginning of the 8th century) who had his harem superintended by
+ eunuchs; a very sensual master who frequently changed his wives.
+ (<i>Reiske Z. Abulfeda</i>, I, 109 ff.; <i>Weil</i>, Gesch. der Kalifen,
+ I, 573.) At an audience which the calif Moktadir gave to a Byzantine
+ ambassador, there appeared 4,000 white and 3,000 black eunuchs.
+ (<i>Rehm.</i>, Gesch. des Mittelalters, I, 2, 32.) In the harems of the
+ present Persian persons of rank, there are usually from 6 to 8 eunuchs.
+ <i>Rosenmüller</i>, Altes und Neues Morgenland, IV, 290. In Upper Egypt,
+ the castration of handsome boys by monks (!) is a regular trade. About 2
+ per cent. die in consequence of the operation, the others rise in
+ consequence in price from 200-300 to 1,000 piasters. (<i>Ritter</i>,
+ Erdkunde, I, 548.) In the Frankish middle age, the merchants of Verdun
+ castrated persons to sell them in Spain. Compare <i>Liutprand</i>, Hist.,
+ VI, 3, in <i>Muratori</i>, Script. Rerum Ital., II, 1, 470.</p>
+
+<p class="p2 center"><a name="S246"></a>SECTION CCXLVI.</p>
+
+<p class="center smaller">HISTORY OF POPULATION.&mdash;IN HIGHLY CIVILIZED
+TIMES.</p>
+
+<p>The conditions of population among mature and flourishing nations is
+characterized by this, that the moral and rational preventive tendencies
+counter to over-population decidedly preponderate. Here so much value is
+attached to the life, and <span class='pagenum'>[Pg 304]</span> to the
+healthy and comfortable life of human beings already in existence that even
+the majority of the lower classes take care to bring no more children into
+the world than can be properly supported, nor to bring them into being in
+advance of food. Here, too, mortality is relatively small, which when
+population is stationary is found in connection with a higher average
+duration of human life.<a name="fnanchor_246-1" id="fnanchor_246-1"></a><a
+href="#footnote_246-1" class="fnanchor">[246-1]</a> While among savage and
+<span class='pagenum'>[Pg 305]</span> semi-savage nations, travelers are
+struck by no phenomenon as much as by the total absence of old men,<a
+name="fnanchor_246-2" id="fnanchor_246-2"></a><a href= "#footnote_246-2"
+class="fnanchor">[246-2]</a> in most European nations the average duration
+of life has, during the last centuries, seemed to noticeably increase. In
+France, for instance, between 1771 and 1780, on a population of 29,000,000
+at most, there were as many deaths as on 35,000,000 between 1844 and
+1853.<a name= "fnanchor_246-3" id= "fnanchor_246-3"></a><a
+href="#footnote_246-3" class="fnanchor">[246-3]</a> In Sweden, the classic
+land of statistics relating to population, mortality from 1749 to 1855 had
+diminished 0.107 per cent. per annum.<a name= "fnanchor_246-4" id=
+"fnanchor_246-4"></a><a href= "#footnote_246-4" class=
+"fnanchor">[246-4]</a> <a name= "fnanchor_246-5" id=
+"fnanchor_246-5"></a><a href= "#footnote_246-5" class=
+"fnanchor">[246-5]</a></p>
+
+<p><span class='pagenum'>[Pg 306]</span>No reasonable man considers mere
+living the highest good; but, from an average prolongation of life, we may
+with great probability infer an improvement in the means of subsistence, in
+hygienic measures, etc., even for the lower classes, who everywhere
+constitute the great majority of the population. <i>Aisance est
+vitalité!</i>&mdash;at least on the supposition that morality remains the
+same.<a name="fnanchor_246-6" id="fnanchor_246-6"></a><a
+href= "#footnote_246-6" class="fnanchor">[246-6]</a> How great may not have
+been the effect, <span class='pagenum'>[Pg 307]</span> for instance, of the
+healthier mode of the building of modern cities, of the disappearance of
+the greater number of fortifications etc., the more rational character of
+the healing art, the extension of vaccination,<a name="fnanchor_246-7"
+id="fnanchor_246-7"></a><a href="#footnote_246-7" class=
+"fnanchor">[246-7]</a> the hygienic measures adopted by governments,<a
+name="fnanchor_246-8" id="fnanchor_246-8"></a><a href="#footnote_246-8"
+class="fnanchor">[246-8]</a> the better care of the poor and especially the
+<span class='pagenum'>[Pg 308]</span> asylums for small children! The
+modern system of agriculture and of the corn trade make famines less
+destructive of life.<a name="fnanchor_246-9" id= "fnanchor_246-9"></a><a
+href="#footnote_246-9" class= "fnanchor">[246-9]</a> (§ 115). The modern
+quarantine-system has protected us entirely against a number of plagues;
+and the worst epidemics of our day cannot be compared with those of earlier
+periods or in less civilized countries. In the second half of the 17th
+century, it was estimated in London that a plague would occur once in every
+20 years, each of which swept away one-fifth of the entire population.<a
+name= "fnanchor_246-10" id="fnanchor_246-10"></a><a href="#footnote_246-10"
+class="fnanchor">[246-10]</a> And in that very city the annual <span
+class='pagenum'>[Pg 309]</span> mortality between 1740 and 1750 varied
+three-fifths, during the second half of the 18th century only one-third,
+during the 19th century only one-fifth in the same decade; a clear proof of
+the diminished fatality of epidemics.<a name="fnanchor_246-11" id=
+"fnanchor_246-11"></a><a href= "#footnote_246-11" class=
+"fnanchor">[246-11]</a> <a name= "fnanchor_246-12" id=
+"fnanchor_246-12"></a> <a href= "#footnote_246-12" class=
+"fnanchor">[246-12]</a></p>
+
+ <p class="footnote"> <a name="footnote_246-1" id="footnote_246-1"></a>
+ <a href="#fnanchor_246-1">[246-1]</a>
+ The so-called <i>Populationistikers</i> are wont to distinguish between
+ the average and probable duration of life (<i>vie moyenne&mdash;vie
+ probable</i>); and understand by the former the number of years which, on
+ an average, have been accorded to one deceased; by the latter, the number
+ of years after the expiration of which one-half of a given number of human
+ beings have disappeared. If <i>x</i> deceased persons have lived an
+ aggregate of <i>s</i> years, their average duration of life =
+ <i>s</i>/<i>x</i>. In the case of a whole people, indeed, even the
+ many-years' average of the duration of life of those deceased expresses
+ the true average duration of life only when (a rare case) the aggregate
+ population remains stationary. For, when the population is increasing, the
+ average age of the deceased is smaller than the average duration of life,
+ and, when population is decreasing, larger. In the saddest case of all,
+ when there are no births whatever, and the nation is gradually dying out,
+ there would be an increase from year to year of the average age. In all
+ such cases, strictly speaking, only the actual observation and following
+ up of those born, until they die; can afford a safe result. This is
+ <i>Hermann's</i> method, introduced into Bavaria since 1835. Compare the
+ XIII. and XVII. numbers of the official Bavarian statistics with <i>G.
+ Meyer's</i> criticism in <i>Hildebrand's</i> Jahrbüchern, 1867, I. And
+ indeed <i>Hopf</i>, Preuss. Statist. Zeitschr., says that a complete table
+ of mortality can be made, according to the best method, only after
+ centuries of observation.</p>
+
+ <p class="footnote">Compare <i>Kopf</i>, in the 3d edition of
+ <i>Kolb's</i> Handbuch der Statistik, and the solid works of <i>G. F.
+ Knapp</i>, Ueber die Ermittelung der Sterblichkeit (1868) and Die
+ Sterblichkeit in Sachsen (1869). <i>Price's</i> mode of calculation of
+ which <i>Deparcieux</i> is the real author, which divides the number of
+ the living by the arithmetical mean of the number of births and deaths is
+ not only inaccurate (<i>Meyer</i>, loc. cit., 43 ff.) but erroneous in
+ principle, since it allows two countries of equal population to be the
+ same, the one of which has 120,000 births and a mortality of 80,000, and
+ the other, on the contrary, 80,000 births and a mortality of 120,000.
+ <i>Engel</i> recommends as the measure of real vitality the ratio between
+ the "living years" and the "dead years," meaning by the former the sum of
+ the years which those still living have lived through, and by the latter
+ the sum of the years lived through by those who have died within a given
+ period. (Preuss. Statist. Zeitschr., 1861, 348 ff.) But the inference
+ which may be drawn from a high or a low average of life is altogether
+ ambiguous. A high average may as well be produced by a great mortality
+ among children as by a favorable mortality among those of mature age; and
+ a low average as well by a relatively small number of births as by a
+ relatively short duration of life. (<i>Meyer</i>, loc. cit., 23, 24.)</p>
+
+ <p class="footnote"> <a name="footnote_246-2" id="footnote_246-2"></a>
+ <a href="#fnanchor_246-2">[246-2]</a>
+ On the aborigines of America, see Lettres édifiantes, VII, 317 ff.
+ <i>Cook,</i> Third Voyage, III, ch. 2. <i>La Pérouse</i>, Voyage, ch. 9.
+ <i>Robertson</i>, Hist. of America B., IV. <i>Raynal</i>, Histoire des
+ Indes L., XV. On the African negroes: <i>M. Park</i>, ch. 1. They are said
+ to manifest the symptoms of old age at 40, and very seldom to live to be
+ over 55 or 60 years of age.</p>
+
+ <p class="footnote"> <a name="footnote_246-3" id="footnote_246-3"></a>
+ <a href="#fnanchor_246-3">[246-3]</a>
+ <i>Necker</i>, De l'Administration des Finances de la France, 1784, I, 205
+ ff., gives for 1771-80 the average number of births, per annum, 940,935;
+ of deaths, 818,391; the population at 24,229,000. <i>Legoyt</i>, Statist.
+ Comp., estimates the last, in 1784, at at least 26,748,843, probably even
+ at 28,718,000. During the period, 1844-53, 35,000,000 to 36,000,000
+ Frenchmen had only about as many births (956,317) and deaths (815,723) as
+ a much smaller population before the Revolution&mdash;the latter numbers,
+ according to official estimation, omitting the still-born&mdash;which
+ <i>Necker</i> also scarcely took into consideration. <i>C'est la
+ différence entre un peuple de prolétaires et une nation, dont les deux
+ tiers jouissent des bienfaits de la propriété. (Moreau de Jonnès).</i> In
+ France, there was one death, in 1784, on every 30 living; in 1801, on
+ every 35.8 living; in 1834-5, on every 38 living; in 1844, on every 39.9
+ living; in 1855-57 (average), on every 41.1 living; in 1860-65 (average),
+ on every 43.7 living. It is also probable, that the average duration of
+ life in France increased from the fact that, from 1800 to 1807, the number
+ of persons subject to conscription was only 45 per cent. of the whole
+ corresponding number of births; but that from 1822 to 1825 it was 61 per
+ cent. (<i>Bernoulli</i>, Populationistik, 452.) On Paris alone, see
+ <i>Villermé</i>, Mémoire lu à l'Académie des Sciences, 29 Nov., 1824.
+ Compare <i>supra</i>, § 10.</p>
+
+ <p class="footnote"> <a name="footnote_246-4" id="footnote_246-4"></a>
+ <a href="#fnanchor_246-4">[246-4]</a>
+ <i>Wappäus</i>, Allg. Bevölkerungsstatistik. In Prussia, in the less
+ cultured provinces (the eastern), the mortality and number of births is
+ greatest; but in the whole country the relative mortality seems to have
+ remained stationary since 1748. (<i>Engel</i>, Preuss. Statist. Zeitschr.,
+ 1861, 336 seq.) And even the average age of the deceased decreased even
+ between 1820 and 1860 (344 ff.) In Berlin alone, the arithmetical mean of
+ the number of births and deaths shows no improvement, at least (loc. cit.
+ 1862, 195).</p>
+
+ <p class="footnote"> <a name="footnote_246-5" id="footnote_246-5"></a>
+ <a href="#fnanchor_246-5">[246-5]</a>
+ In Geneva, where there have been almost uninterrupted tables of mortality,
+ giving the age at the time of death, the average duration of life during
+ the 2d half of the 16th century is estimated at 21-1/6 years; during the
+ 17th century, at 25¾ years; from 1701 to 1750, at 32-7/12 years; from 1750
+ to 1800, at 34½ years; from 1814 to 1833, at 40-2/3 years. Compare
+ <i>Mallet</i>, Recherches historiques et statistiques sur la Population de
+ Genève, 1837, 98 ff., 104 ff., and <i>Bernouilli</i>, Schweiz, Archiv.,
+ II, 77; <i>per contra, d'Ivernois</i>, sur la Mortalité proportionelle des
+ peuples considérée comme Mesure de leur Aisance et Civilization, 1833, 12
+ ff. But little can be inferred from this, on account of the large
+ immigration, of adults for the most part. Geneva is said to have had, in
+ the 16th century, never much more than 13,000 inhabitants; at the end of
+ the 17th century it had 17,000; in 1789, 26,000; between 1695 and 1795
+ there was an increase of 6,000 at least from abroad. (<i>Bernouilli</i>,
+ Populationistik, 369 seq.) Compare <i>Wappäus</i> in the Götting.
+ Gesellsch. der Wissensch. Bd., VIII, 1860, who, however, as well as
+ <i>Neison</i>, Contributions to Vital Statistics, VI ff., is too skeptical
+ as regards modern progress in vitality.</p>
+
+ <p class="footnote"> <a name="footnote_246-6" id="footnote_246-6"></a>
+ <a href="#fnanchor_246-6">[246-6]</a>
+ Higher civilization, indeed, instead of leading to higher vitality, may
+ lead to immoderate toil and immoderate enjoyment. (<i>Schäffle</i>, in the
+ D. Vierteljahrsschrift, April, 1862, 340.) <i>Engel</i> says that, in
+ general, life is more intense in our day, and hence leads to a more rapid
+ exhaustion of individual life-force. (Preuss. Statist. Ztschr., 1862, 53.)
+ According to English experience of the well-fed classes, those have the
+ greatest duration of life who otherwise live in modest circumstances.
+ Thus, for instance, clergymen thirty years of age have still an average
+ expectation of life of 39.49 years; members of the learned professions,
+ 38.86; country gentlemen, 40.22; members of the aristocracy, 37.31;
+ princes of the blood, only 34.04; sovereigns, only 27.16 (Statist.
+ Journal, 1859, 356 ff.); while agricultural laborers, who have sufficient
+ means and intelligence to participate in the so-called friendly societies,
+ have an expectation of life of 40.6 years after their thirtieth year.
+ (<i>Neison</i>, loc. cit.) On the whole, it seems to be in harmony with
+ the democratic leveling tendencies of our own age, that the better care of
+ children and of the sick has lengthened short lives, and that the unrest
+ of the times has shortened the long lives, although the level of the
+ general average continually rises, notwithstanding. Thus, in Geneva, the
+ proportion of those who outlived their thirtieth year was: in the 16th
+ century, after 1549, 29.87; in the 17th century, 37.29; in the 18th
+ century, 49.39; in the 19th century, until 1833, 58.85 per cent. of the
+ number of births. On the other hand, the expectation of life of those who
+ had attained their 80th year, was in these four centuries respectively
+ 6.22, 5.87, 4.40 and 3.84 years. (<i>Mallet</i>, l. c., and Statist.
+ Journal, 1851, 316 ff.) In keeping with this is, that according to
+ <i>Guy's</i> researches, the average duration of life of the English
+ peerage and baronetage was, in 1500-1550, 71.27 years; 1550-1600, 68.25
+ years; 1600-1650, 63.95 years; 1650-1700, 62.40 years; 1700-1745, 64.13
+ years. (Statist. Journal, 1845, 74.) However, we may most directly infer a
+ favorable condition of things from the diminished mortality of children,
+ for the reason that this, far more directly than the mortality of adults,
+ is conditioned by the quality of food. The younger a child is, the more
+ exclusively is its life-force the product of these two factors: the
+ physical constitution of its parents and the care bestowed upon it.
+ Compare <i>F. J. Neumann</i>, Die Gestaltung der mittleren Lebensdauer in
+ Preussen, 1865, 26 ff. In Prussia, in 1751-60, only 312 in 1,000 outlived
+ their tenth year; in 1861-70, 633 in 1,000. Yet, since 1856, the mortality
+ of children has again begun to increase. (<i>Knapp</i>, Mittheilungen des
+ Statist. Bureaus, VIII, p. 8.)</p>
+
+ <p class="footnote"> <a name="footnote_246-7" id="footnote_246-7"></a>
+ <a href="#fnanchor_246-7">[246-7]</a>
+ <i>Duvillard</i>, Analyse ou Tableau de l'Influence da la petite Vérole,
+ 1806, is of opinion that before vaccination only 4 per cent. of those over
+ 30 years of age were spared by the small-pox; that two-thirds of all
+ new-born children were attacked by the disease sooner or later, and that
+ from one-eighth to one-seventh of those attacked died; and of small
+ children even one-third. Hence, in many countries, the average duration of
+ life was increased 3½ years by reason of vaccination. In London, between
+ 1770 and 1779, of 1,000 deaths, 102 were caused by the small-pox; in from
+ 1830 to 1836, only 25 in 1,000. (<i>Porter</i>, Progress of the Nation, I,
+ 1, 39.) In Berlin, between 1792 and 1801, 4,999 persons died of the
+ small-pox; between 1812 and 1822, only 555. (<i>Casper.</i>) That this is
+ really a consequence of vaccination is proved by the facts of the Chemnitz
+ small-pox epidemic of 1870-71, during which, in four of the streets
+ principally visited by it, 9 per cent. were taken ill. Of 4,375 persons
+ who had been vaccinated, 2.12 per cent. were attacked; of 644 who were not
+ vaccinated, 54.38 per cent. Of those attacked, 2.1 per cent. of the former
+ and 11.3 per cent. of the latter died. (Leipzig Tageblatt, 5 Mai,
+ 1871.)</p>
+
+ <p class="footnote"> <a name="footnote_246-8" id="footnote_246-8"></a>
+ <a href="#fnanchor_246-8">[246-8]</a>
+ Among the earliest institutions of medical police are the following: the
+ Swedish Collegium medicum under Charles XI; the Prussian, 1724; the
+ Danish, 1740; the quarantine law of Louis XIV., of 1683; the Parisian
+ bureau of nurses, 1715; lying-in establishments since 1728; French
+ institutions for the saving of drowned persons, 1740; English institutions
+ for the saving of persons in cases of apparent death, 1744; bathing
+ largely promoted by government since the eighteenth century; prohibition
+ by Maria Theresa of burial in churches and of locating cemeteries too near
+ dwelling houses, in 1778. Even <i>Thomasius</i>, De Jure Principum circa
+ Sepultur., § 8, had advised this; and, in Italy, <i>Fr. Patricius</i>, De
+ Inst. Republ. V, 10. On ancient medical police, see <i>Pyls</i>
+ Repertorium für öffentliche und gerichtliche Arzneiwissenschaft, II 167,
+ ff. III, 1 ff.</p>
+
+ <p class="footnote"> <a name="footnote_246-9" id="footnote_246-9"></a>
+ <a href="#fnanchor_246-9">[246-9]</a>
+ In France, the number of deaths in the cheap years, 1816 and 1819,
+ amounted to an average of 755,877; of the dear years, 1817 and 1818, to an
+ average of 750,065. (Ann. d'Economie politique, 1847, 333.) Thus, the same
+ scarcity in Pomerania increased its otherwise smaller mortality relatively
+ less than in Posen. (<i>Hildebrand's</i> Jahrbb. 1872, I, 292.) It is a
+ good sign that in Altenburg, between 1835 and 1864, the variation in the
+ price of corn had no influence on its mortality, although the number of
+ marriages and of births was conditioned by it. (<i>v. Scheel</i> in
+ <i>Hildebrand's</i> Jahrbb., 1866, I, 161 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_246-10" id="footnote_246-10"></a>
+ <a href="#fnanchor_246-10">[246-10]</a>
+ <i>Sir W. Petty</i>, Several Essays, 31 seq. Great regularity of epidemics
+ in the tropical world: <i>Humboldt</i>, N. Espagne, II, 5. The great
+ plague in the middle of the 14th century is said to have destroyed 2/3 of
+ the population of Norway, of Upland, 5/6; in the mountain districts of
+ Wermeland only 1 boy and 2 girls were left. (<i>Geijer</i>, Schwed.
+ Gesch., I, 186.) According to <i>Sismondi</i>, Gesch. der Italien.
+ Republiken, VI, 27, 3/5 of the whole population of Europe died at that
+ time. How the cholera would have raged among our forefathers in the middle
+ ages! Certainly, as it does now in the East Indies; since, when of those
+ really attacked by the disease among ourselves so many die, we cannot
+ attribute our small number of deaths from cholera to the smaller intensity
+ of the disease or to the greater skill of our doctors, but chiefly to the
+ better nourishment of our people, to their better dwellings and greater
+ cleanliness. Compare <i>Heberden</i>, On the Increase and Decrease of
+ Disease, 1801.</p>
+
+ <p class="footnote"> <a name="footnote_246-11" id="footnote_246-11"></a>
+ <a href="#fnanchor_246-11">[246-11]</a>
+ <i>Bernouilli</i>, Populationistik, 363, seq. Whether, on this account, we
+ can infer the increased health of the people, is very much doubted by the
+ aged <i>laudatores temporis acti</i>. They would have us believe that it
+ is possible that the prolongation of the average of human life is to be
+ explained by taking into account the case of numerous valetudinarians who
+ formerly died early, but who are <i>now</i> preserved to drag out a
+ miserable existence. The relative number of those who have died of old age
+ did not noticeably increase between 1816 and 1860 either in Berlin or in
+ the Prussian state. (<i>Engel</i>, Zeitschr., 1862, 222.) Compare, per
+ contra, <i>Marx</i>, Ueber die Abnahme der Krankheiten durch die Zunahme
+ der Civilization: transactions of the Göttinger Gesellschaft<a name=
+ "fnanchor_TN82" id= "fnanchor_TN82"></a><a href= "#footnote_TN82" class=
+ "fnanchor">[TN 82]</a> der Wissenschaften, 1842&mdash;44,43, ff. The
+ extreme limit of the decrease of mortality, where there are no other
+ causes of death but inevitable weakness of childhood and age, <i>J. G.
+ Hoffmann</i> thinks would be one death per annum for every 52-53 living,
+ and <i>Wappäus</i>, one in 57-58. (Allg. Bevölkerungstatistik, I, 231,
+ 340); (<i>Schäffle</i>, System, I, 571); according to Capeland
+ observations, one for every fifty.</p>
+
+ <p class="footnote"> <a name="footnote_246-12" id="footnote_246-12"></a>
+ <a href="#fnanchor_246-12">[246-12]</a>
+ This much, however, is clear, that the life insurance companies of the
+ present day cannot rely on the calculations made in earlier stages of
+ civilization; on <i>Süssmilch's</i>, for instance; and just as little on
+ those of the old Romans in L. Digest. ad Leg. Falcidiam. Compare
+ <i>Schmelzer</i>, De Probabilitate Vitae ejusque Usu forensi, 1788.</p>
+
+<p class="p2 center"><a name="S247"></a>SECTION CCXLVII.</p>
+
+<p class="center smaller">HISTORY OF POPULATION.&mdash;NUMBER OF BIRTHS AND
+DEATHS.</p>
+
+<p>There is found to be in most states, where a decrease in mortality has
+been observed, a diminished number of births likewise.<a name=
+"fnanchor_247-1" id="fnanchor_247-1"></a><a href="#footnote_247-1" class=
+"fnanchor">[247-1]</a> This, indeed, happens necessarily only in the case
+in which the means of subsistence either do not increase at all, or in a
+less degree than mortality has decreased. Thus, towards <span class=
+'pagenum'>[Pg 310]</span> the end of the 18th century, Norway was the
+country where the increase and decrease of the population were most
+remarkable for their smallness. There was only one death between 1775 and
+1784 for every 48 living persons; but, at the same time, only one marriage
+for every 130 living.<a name="fnanchor_247-2" id="fnanchor_247-2"></a><a
+href="#footnote_247-2" class="fnanchor">[247-2]</a> The organization
+of labor was so little developed among the Norwegians, especially in the
+absence of important cities, the industries of which might have been able
+to absorb the surplus population, that almost every one of its inhabitants
+was in a condition to calculate in advance whether or not he would have
+enough to support a family. A person born in the country remained generally
+in his native village all his life. To found a family he had either to own
+a peasant's estate himself or wait until one of the day laborer's huts
+(<i>Kathe</i>), of which there were several attached to each such estate,
+was vacant. A too large family would certainly have died of hunger in the
+winter time. The clear sober sense of the people recognized this fact, and
+all the farm houses of the peasants were without any appreciable injury to
+morality filled with unmarried servants of both sexes who were, indeed,
+supplied with clothes and food but who at the same time were indolent and
+incapable of advancement.<a name= "fnanchor_247-3" id=
+"fnanchor_247-3"></a><a href= "#footnote_247-3" class=
+"fnanchor">[247-3]</a> Where a nation's economy is rapidly advancing, there
+is no necessity why the most natural and when properly directed the most
+beneficent human impulse should be sacrificed to a higher average duration
+of life. But if this must be, when the distribution of the national
+resources is pretty nearly equal, it is <span class='pagenum'>[Pg
+311]</span> not so much the number of marriages as the average fruitfulness
+of marriages that will diminish; that is as many persons as before may
+enter the married state but most of them are obliged either to postpone
+doing so until a later age, which places a greater interval between
+generation and generation, and causes the number of those living at any one
+time to decrease; or they cease to procreate children at an earlier period
+in their married life. The latter is found especially in France.<a
+name="fnanchor_247-4" id="fnanchor_247-4"></a><a href="#footnote_247-4"
+class="fnanchor">[247-4]</a> <a name="fnanchor_247-5"
+id="fnanchor_247-5"></a><a href="#footnote_247-5" class=
+"fnanchor">[247-5]</a> <span class='pagenum'>[Pg 312-13]</span> But, on the
+other hand, where the distribution of the national resources is very
+unequal, the rich may afterwards as well as before continue to follow out
+their inclination to marry at as early a day and age as they wish; but the
+less fortunate must remain unmarried through life. Here, therefore, the
+average number of children to a marriage does not diminish; but the
+aggregate number of marriages does.<a name="fnanchor_247-6"
+id="fnanchor_247-6"></a><a href= "#footnote_247-6" class=
+"fnanchor">[247-6]</a> If the relative frequency of marriages in most
+European countries has diminished during the last century, the cause has
+been in part directly the long duration of life of married couples. Hence,
+we are not always warranted in consequence, to infer a diminished number of
+existing marriages.<a name="fnanchor_247-7" id="fnanchor_247-7"></a><a
+href="#footnote_247-7" class="fnanchor">[247-7]</a></p>
+
+<p>In many countries, it has been recently observed that the average number
+of persons to a family is a decreasing one. Thus for, instance, in 1840, in
+Holland, there were to every <span class='pagenum'>[Pg 314]</span> hundred
+families 497 persons, in 1850, only 481; in Saxony, in 1832, 460; in 1840,
+only 443; in Bavaria, in 1827, 480, in 1846, only 448. In cities also the
+average size of families is usually smaller than in the country.<a
+name="fnanchor_247-8" id="fnanchor_247-8"></a><a href="#footnote_247-8"
+class="fnanchor">[247-8]</a> This is intimately connected with this other
+fact that in the higher stages of civilization a larger number of
+independent households consists of single persons in contradistinction to
+married couples.<a name="fnanchor_247-9" id="fnanchor_247-9"></a><a
+href="#footnote_247-9" class= "fnanchor">[247-9]</a> <a name=
+"fnanchor_247-10" id="fnanchor_247-10"></a><a href="#footnote_247-10"
+class="fnanchor">[247-10]</a></p>
+
+ <p class="footnote"> <a name="footnote_247-1" id="footnote_247-1"></a>
+ <a href="#fnanchor_247-1">[247-1]</a>
+ In France there was one child born alive,</p>
+
+<table class="fn" border="0" cellpadding="5"
+summary="France births">
+
+<tr><td></td><td class="center">on every</td></tr>
+
+<tr><td class="left">In 1801-1805,</td><td class="left">30.9
+living.</td></tr>
+
+<tr><td class="left">In 1806-1810,</td>
+<td class="left">31.6&nbsp;&nbsp;&nbsp;&nbsp;"</td></tr>
+
+<tr><td class="left">In 1811-1815,</td>
+<td class="left">41.5&nbsp;&nbsp;&nbsp;&nbsp;"</td></tr>
+
+<tr><td class="left">In 1816-1820,</td>
+<td class="left">31.6&nbsp;&nbsp;&nbsp;&nbsp;"</td></tr>
+
+<tr><td class="left">In 1821-1825,</td>
+<td class="left">32.1&nbsp;&nbsp;&nbsp;&nbsp;"</td></tr>
+
+<tr><td class="left">In 1826-1830,</td>
+<td class="left">33.0&nbsp;&nbsp;&nbsp;&nbsp;"</td></tr>
+
+<tr><td class="left">In 1831-1836,</td>
+<td class="left">34.0&nbsp;&nbsp;&nbsp;&nbsp;"</td></tr>
+
+<tr><td class="left">In 1846-1850,</td>
+<td class="left">37.8&nbsp;&nbsp;&nbsp;&nbsp;"</td></tr>
+
+<tr><td class="left">In 1851-1854,</td>
+<td class="left">37.88&nbsp;&nbsp;"</td></tr>
+
+<tr><td class="left">In 1860-1864,</td>
+<td class="left">37.56&nbsp;&nbsp;"</td></tr>
+
+</table>
+
+ <p class="footnote"> <a name="footnote_247-2" id="footnote_247-2"></a>
+ <a href="#fnanchor_247-2">[247-2]</a>
+ <i>Malthus</i>, Principle of Population, II, ch. 1. In Denmark, at the
+ same time, 1 in 37 and 114. (<i>Thaarup</i>, Dänische Statistik., II, 1,
+ 4.)</p>
+
+ <p class="footnote"> <a name="footnote_247-3" id="footnote_247-3"></a>
+ <a href="#fnanchor_247-3">[247-3]</a>
+ In modern times, the intellectual and legal conditions which existed in
+ Norway have been loosened to a great extent, and population in that
+ country has, in consequence, made rapid advances. In 1769 the population
+ was only 723,000; in 1855, it was 1,490,000. But the above customs for the
+ most part continue still. Between 1831 and 1835, there was one marriage a
+ year for every 138 living persons. The relative number of marriages is
+ smaller than before. In 1769, there were, in every 1,000,376 married
+ persons; in 1801, 347; in 1825, 345; in 1835, 322. In 1805, there were
+ only 63 illegitimate births to every 1,000 births; in 1835, the proportion
+ was 71.5 in every 1,000. (<i>Blom</i>, Statistik Con N., II, 168,
+ 173.)</p>
+
+ <p class="footnote"> <a name="footnote_247-4" id="footnote_247-4"></a>
+ <a href="#fnanchor_247-4">[247-4]</a>
+ In England, there were, in 1838-47, of every 1,000 contracting marriage,
+ 94 who had not yet completed their 21st year; in Belgium, 1840-50, only
+ 54; but the famine year, 1846-47, noticeably lowered the relative number
+ of minors in both countries. There were married<span
+ style="white-space:nowrap;">&mdash;</span></p>
+
+ <p class="footnote indent2">Column title code<br /><i>A - In Belgium
+ 1841-50.</i><br /><i>B - In the purely Flemish provinces.</i><br /><i>C -
+ In the purely Wallonic provinces.</i><br /><i>D - Sweden. 1831-35.</i></p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Marriages in Belgium">
+
+<tr><td></td><td class="center"><i>A</i></td><td class="center"><i>B</i></td>
+<td class="center"><i>C</i></td><td class="center"><i>D</i></td></tr>
+
+<tr><td></td><td class="center">per 1,000</td><td class="center">per
+1,000</td><td class="center">per 1,000</td></tr>
+
+<tr><td class="left">Before their 21st year</td><td class="right">56</td>
+<td class="right">32</td><td class="right">74</td><td class="left">&#9127;359
+per 1,000 males.</td></tr>
+<tr><td class="left">From 22 to 25 years</td><td class="right">219</td>
+<td class="right">181</td><td class="right">259</td><td class="left">&#9129;463
+per 1,000 females.</td></tr>
+
+<tr><td class="left">From 26 to 35 years</td><td class="right">503</td>
+<td class="right">511</td><td class="right">490</td><td class="left">458
+males, 387 females, per 1,000.</td></tr>
+
+<tr><td class="left">From 36 to 45 years</td><td class="right">161</td>
+<td class="right">191</td><td class="right">129</td>
+<td class="left">&#9127;183 per 1,000 males.</td></tr>
+
+<tr><td class="left">After their 45th year</td><td class="right">61</td>
+<td class="right">75</td><td class="right">48</td><td class="left">&#9129;150
+per 1,000 females.</td></tr>
+</table></div>
+
+ <p class="footnote">But it must not be overlooked here, that the Flemish
+ provinces of Belgium had been for a long time in a sad economic condition.
+ (<i>Horn</i>, Studien, I, 75 ff.) No less characteristic of the well-being
+ of a people and their providence in entering into the married state is the
+ relative age at which they contract marriage. If we divide ages into four
+ classes (up to the 30th year, between 31 and 45, between 46 and 60, and
+ after 60), we find, for instance, that from 1841 to 1845, there were in
+ West Flanders 585 per 1,000 marriages between persons of the same
+ age-class, 305 in which the husband, and 110 in which the wife belonged to
+ an older class; in Namur, on the other hand, 683, 234 and 83. In dear
+ years, the relative number of marriages between persons belonging to
+ different age-classes, and the relative difference in age of parties to
+ the marriage contract increases.</p>
+
+ <p class="footnote">And so, the frequency of second marriages of widows
+ and widowers is no favorable symptom of the facility of founding a family.
+ Naturally every woman prefers a man who was never married before to a
+ widower; and every man a maiden to a widow; but where there is a want of
+ room to establish a new household, the possession of such one by a widower
+ may readily preponderate over all counter considerations. Thus, for
+ instance, in the Flemish provinces of Belgium, of 1,000 widowers, from 365
+ to 395 marry again; in the Wallonic, only from 293 to 308. Of 1,000
+ brides, 98 are widows in West Flanders, and in Namur, 41. A similar
+ proportion in Bavaria between the Palatinate and the hither-districts.
+ (<i>Hermann</i>, Bewegung der Bevölkerung in Bayern, p. 14.) The less the
+ frequency of marriage in general, the greater is the relative probability
+ of second marriage for widows and widowers; and hence, in years of
+ scarcity, the latter relatively increase. (<i>Horn</i>, Studien, I, 201
+ ff.) Sometimes this increase is absolute: in Austria, during the cheap
+ year 1852, there were 231,900 marriages between persons never before
+ married, and 85,000 in which at least one of the contracting parties had
+ been married before. On the other hand, during the dear year 1855, there
+ were only 156,000 of the former and 89,000 of the latter. Something
+ analogous, observed in antiquity. (<i>Pausan.</i>, II, 21, 8; X, 38, 6;
+ <i>Propert.</i>, II, 11, 36.) <i>Tacitus</i>, Germ., 19, describes the
+ moral feelings of the ancient Germans as averse to the second marriage of
+ widows, and he apparently approves it.</p>
+
+ <p class="footnote"> <a name="footnote_247-5" id="footnote_247-5"></a>
+ <a href="#fnanchor_247-5">[247-5]</a>
+ In 19 European countries, with an aggregate population of 121,000,000, the
+ number of the married amounted to an average of 34.88 per cent. of the
+ whole population. France is at the head with 38.94 per cent. (1866), even
+ 40.5. In these countries, of all adults, there is a percentage of 65.98
+ who marry. France is here, also, at the head, with a percentage of 73.58.
+ And the number of the unmarried has continually decreased in
+ post-revolutionary France. In 1806, there were only 35.84 per cent. of the
+ population married. (<i>Wappäus</i>, A. Bevölk erungsstatistik, II, 219,
+ 223, 229.) In relation also to the frequency of first marriages and of
+ marriage at the proper age, France is the best situated country.
+ (<i>Haushofer</i>, Lehr- und Handbuch der Statistik, 40 ff.) But at the
+ same time, in what concerns the fruitfulness of marriage, it is the
+ farthest behind; and since 1780 prolificacy has continually decreased
+ there. Thus, 1800-1815, 3.93 legitimate children to a marriage; 1856-60,
+ only 3.03; 1861-6, again 3.08. (<i>Legoyt</i> in the Journal des Econ.
+ Oct. 1870, 28.) How little this depends upon physiological causes may be
+ inferred from the fact that <i>Strabo</i> commends the women of the Gallic
+ race for their peculiar adaptability to bearing and rearing children. (IV,
+ 178, 196.) The "prudential checks" must play a principal part in producing
+ a low birth rate. (Statist. Journal, 1866, 262), as we find in France</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="France low birth rate">
+
+<tr><td class="center"><i>In</i></td><td class="center" colspan="2"><i>Yearly
+per 100 inhabitants.</i></td><td class="center"><i>Women who marry
+before<br />their 25th year</i>.</td></tr>
+
+<tr><td></td><td class="center"><i>Marriages.</i></td><td class="center">
+<i>Births.</i></td><td class="center"><i>per cent.</i></td></tr>
+
+<tr><td class="left">Brittany,</td><td class="center">7.0</td>
+<td class="center">29.8</td><td class="center">42.7</td></tr>
+
+<tr><td class="left">Adour,</td><td class="center">6.9</td>
+<td class="center">25.0</td><td class="center">47.3</td></tr>
+
+<tr><td class="left">Lower Garonne,</td><td class="center">8.3</td>
+<td class="center">22.0</td><td class="center">59.7</td></tr>
+
+<tr><td class="left">Upper Seine</td><td class="center">8.0</td>
+<td class="center">23.7</td><td class="center">60.0</td></tr>
+
+</table></div>
+
+ <p class="footnote">That, however, the shorter duration and smaller
+ fruitfulness of marriage by no means necessarily accompany one another,
+ France also proves, since it possesses the longer average duration of
+ marriage: 26.4 years against 20.7 in Prussia. (<i>Wappäus</i>, II, 311,
+ 315.)</p>
+
+ <p class="footnote"> <a name="footnote_247-6" id="footnote_247-6"></a>
+ <a href="#fnanchor_247-6">[247-6]</a>
+ The proportion of the married to the whole population declined in Prussia
+ from 35.09 in 1816, to 33.09 per cent. in 1852; in Sweden, from 36.41 in
+ 1751 to 32.59 per cent. in 1855; in Norway, from 37.60 per cent. in 1769
+ to 32.21 per cent. in 1855; in Saxony, from 35.52 per cent. in 1834, to
+ 34.98 per cent. in 1849. (<i>Wappäus</i>, II, 229.) If all who are at
+ least 20 years of age be considered competent to marry, there are of every
+ 1,000 thus competent in Belgium, 520 actually married; in the Flemish
+ provinces alone, 489; in the most favorably situated Wallonic, 554.
+ (<i>Horn</i>, Bevölk. Studien, I, 139 ff.) In Rome, under Augustus, the
+ proportion was much less satisfactory. In the higher classes, a large
+ majority did not marry at all. (<i>Dio. Cass.</i>, I, VI, 1.)</p>
+
+ <p class="footnote"> <a name="footnote_247-7" id="footnote_247-7"></a>
+ <a href="#fnanchor_247-7">[247-7]</a>
+ In Halle, in 1700, there was one marriage for every 77 of the population;
+ in 1715, for every 99; in 1735, for every 140; in 1755, for every 167. In
+ Leipzig, in 1620, there was one for every 82; 1741-1756, for every 118;
+ 1868, for every 92.8. In Augsburg, 1510, one in 86; in 1610, in 108; in
+ 1660, in every 101; in 1750, in every 123. The provinces of Magdeburg,
+ Halberstadt, Cleve, Mark, Munden, Brandenburg, Pomerania<a name=
+ "fnanchor_TN83" id= "fnanchor_TN83"></a><a href= "#footnote_TN83" class=
+ "fnanchor">[TN 83]</a> and Prussia had, about the end of the seventeenth
+ century, one marriage per annum for every 76-95 of the population; the
+ Prussian monarchy, 1822-1828, one marriage for every 109-121. Compare
+ <i>Sussmilch</i> Göttl. Ordnung, I., 131, ff., <i>Schubert</i> Staatskunde
+ des preuss. Staates I., 364. In France, 1801-1805, there was one marriage
+ per annum in every 137 living; in 1821-5, for every 129; in 1831-35, for
+ every 127; in 1842-51, for every 125.39; in 1860, for every 124.7.</p>
+
+ <p class="footnote"> <a name="footnote_247-8" id="footnote_247-8"></a>
+ <a href="#fnanchor_247-8">[247-8]</a>
+ In Prussia, in 1849, there were in every one hundred families in the
+ cities, 492 individuals; in the country, 512. In Belgium, in 1846, 459 and
+ 497 respectively. (<i>Horn</i>, Bevölk. Studien, I, 88, ff.) In France, in
+ 1853, in the cities, 358; in Paris alone, 299. In the Zollverein, the
+ number of individuals in a family increased in 1852-55, 5.81 per cent.;
+ the population only 3.02 per cent.; the population of those over fourteen
+ years of age, by 4.41 per cent.; of minors by 1.02 per cent. Only in
+ Saxony and the cities of Hanover was the reverse the case. (<i>v.
+ Viebahn</i>, II, 278, seq.)</p>
+
+ <p class="footnote"> <a name="footnote_247-9" id="footnote_247-9"></a>
+ <a href="#fnanchor_247-9">[247-9]</a>
+ Thus, for instance, in Belgium, for every 100 households, there are 74
+ marriages; in the cities of Belgium, 70; in the Belgian country parishes,
+ 75; in Prussia in 1849, 84. (<i>Horn</i>, I, 93 seq.) It is estimated that
+ in Prussia, only 3 per cent. of the adult population live outside of the
+ family. (<i>Viebahn</i>, II, 273.)</p>
+
+ <p class="footnote"> <a name="footnote_247-10" id="footnote_247-10"></a>
+ <a href="#fnanchor_247-10">[247-10]</a>
+ It is strange that <i>Süssmilch</i>, Göttl. Ordnung, I, § 13, considers
+ mortality an unalterable law, while he fully recognizes the social grounds
+ which caused the frequency and prolificacy of marriages to vary (I, § 56,
+ 99).</p>
+
+<p class="p2 center"><a name="S248"></a>SECTION CCXLVIII.</p>
+
+<p class="center smaller">HISTORY OF POPULATION.&mdash;NUMBER OF BIRTHS AND
+DEATHS.</p>
+
+<p>So far as the mere number of the population is concerned, it is
+obviously a matter of indifference whether there are annually 1,000 births
+and 800 deaths, or 2,000 births and 1,800 deaths. But we see in the former
+an element of higher civilization,<a name="fnanchor_248-1" id=
+"fnanchor_248-1"></a><a href="#footnote_248-1" class=
+"fnanchor">[248-1]</a> especially, on account of the conditions which
+determine it. It can occur only where even the most numerous, that is the
+lower class, feel other wants than those of the mere means of existence and
+of the satisfaction of the sexual instinct: wants, duties which probably
+could not be satisfied in a state of marriage <span class='pagenum'>[Pg
+315]</span> thoughtlessly entered into; where the virtues both of foresight
+and self-control are very generally practiced.</p>
+
+<p>And then let us consider the consequences. The efficacy of the
+repressive hinderances to over-population either consists in immoral acts
+or easily leads to immorality. Until a "surplus" child has died, what a
+series of troubles for good parents, and what a chain of evil deeds for bad
+ones, to say nothing of the poor child itself.</p>
+
+<p>Further, every man, no matter how short or long his life, requires a
+large advance of capital and trouble which he has later to return to
+society through the activity of his riper years. If he dies before his
+maturity, this advance has been made in vain. The more, therefore, the
+population of a country, in order to maintain itself within the bounds of
+its field of food, has to calculate on the death of children, the greater
+is this loss.<a name= "fnanchor_248-2" id= "fnanchor_248-2"></a><a
+href="#footnote_248-2" class="fnanchor">[248-2]</a> Hence, from a
+national-economic point of view, it is to be considered a great advance,
+that in England in 1780, there was one death among its people under 20
+years of age in every 76 of the population, in 1801, in every 96, in 1830,
+in every 124, in 1833, one only in every 137. (<i>Porter.</i>) Lastly, the
+longer the average duration of life of a child the greater, other
+circumstances remaining the same, the number of grown people as compared
+with that of the children; but grown people are, <span class='pagenum'>[Pg
+316]</span> as a rule, independent, capable of self-defense, economically
+productive, competent to discharge all the rights and duties of
+citizenship, while children are dependent, incapable of self-defense,
+unproductive, immature. Only he who knows the relative numbers of the
+different age-classes of a nation can draw fruitful conclusions from the
+data per capita relating to taxation, from the statistics of crime,
+suicides, illegitimate births, of school-children, etc., or judge correctly
+of a locality's military contingent.<a name="fnanchor_248-3" id=
+"fnanchor_248-3"></a><a href= "#footnote_248-3" class=
+"fnanchor">[248-3]</a> <a name= "fnanchor_248-4" id=
+"fnanchor_248-4"></a><a href= "#footnote_248-4" class=
+"fnanchor">[248-4]</a> Here, indeed, it should not be overlooked that in
+the highest age-classes, human beings return in many respects to the
+helplessness of childhood. Yet, as a rule, to reach a good old age is
+generally considered a personal good fortune; and the existence of a great
+many aged persons in a country, if not in itself an advantageous element in
+its economy, may, nevertheless, be called a pleasing symptom.<a
+name="fnanchor_248-5" id="fnanchor_248-5"></a><a href="#footnote_248-5"
+class="fnanchor">[248-5]</a> On an average there is only one person over
+sixty to every twelve under fifteen years of age. (<i>J. G. Hoffmann.</i>)
+We may, hence, readily measure what an advantage France possesses in this,
+that in 1861, in every 1,000 inhabitants, only 273 were under fifteen years
+of age, 524 between sixteen and fifty, the most vigorous years of life, and
+203 over fifty years old. The average age of the French population was
+31.06 years against 27.22 in Sardinia and 25.32 in Ireland.</p>
+
+<p><span class='pagenum'>[Pg 317]</span>However, a positively unfavorable
+conclusion from a relatively large number of children in a nation should
+not be drawn except in the case of a people the limits of whose field of
+food cannot be extended. (§ 239.) Where the nation's economy has a rapid
+growth, as for instance in young colonies, the comparatively easy rearing
+of children which there obtains, without any corresponding mortality, is
+not so much considered a burthen<a name="fnanchor_248-6"
+id="fnanchor_248-6"></a><a href= "#footnote_248-6" class=
+"fnanchor">[248-6]</a> as a symptom of their good fortune and <span class=
+'pagenum'>[Pg 318]</span> even a positive good.<a name= "fnanchor_248-7"
+id="fnanchor_248-7"></a><a href="#footnote_248-7" class=
+"fnanchor">[248-7]</a> On the other hand, of the Belgian provinces, for
+instance, suffering Flanders had relatively the smallest number of
+children, because it had the largest child-mortality.<a name=
+"fnanchor_248-8" id="fnanchor_248-8"></a><a href="#footnote_248-8" class=
+"fnanchor">[248-8]</a></p>
+
+<p>Almost all the signs which, according to the above paragraphs,
+distinguish a higher stage of civilization from a lower, may be shown
+within the limits of the same age and nation to characterize the upper
+classes as compared with the lower. We may even claim that the greater
+foresight and self-control of the former in the matter of marriage and in
+the procreation of children, since the abolition of the greater number of
+legal advantages of class, are by far the most important of the elements
+constituting their superiority over the latter. The word proletariat, from
+<i>proles</i>, means first of all, having many children
+(<i>Vielkinderei</i>)!</p>
+
+ <p class="footnote"> <a name="footnote_248-1" id="footnote_248-1"></a>
+ <a href="#fnanchor_248-1">[248-1]</a>
+ <i>J. Möser</i> did not even dream of this. Patr. Phant., I, 15.</p>
+
+ <p class="footnote"> <a name="footnote_248-2" id="footnote_248-2"></a>
+ <a href="#fnanchor_248-2">[248-2]</a>
+ <i>Rossi</i>, Cours d'Economie politique, I, 371, estimates the cost of
+ bringing up a child to its 16th year at a minimum of 1,000 francs. Hence,
+ a country with 1,000,000 births annually, in which only 50 per cent. reach
+ that age, would lose 500,000,000 francs per annum. However, over one-third
+ of the children in question die in the first years of childhood, and the
+ rest do not reach on an average their 16th year, but die between the age
+ of 7 and 8: <i>Bernouilli</i>, Populationistik, 259. <i>Engel</i>
+ estimates Saxony's "man-capital" at 4 times the value of all the land in
+ the country, and at 10 times the value of all movable property. (Sächs.,
+ Statist. Zeitschr., 1855, No. 9. Preuss. Statist. Zeitschr., 1861, 324.)
+ One of the chief advocates of the view that there is an investment of
+ capital in every child is <i>Chadwick</i> in the opening address delivered
+ by him before an English learned society at Cambridge: Statist. Journal,
+ Dec., 1862. Lancashire alone pays a penalty per annum for preventable
+ deaths of £4,000,000, for the funeral and medical expenses; to say nothing
+ of the capital lost (506).</p>
+
+ <p class="footnote"> <a name="footnote_248-3" id="footnote_248-3"></a>
+ <a href="#fnanchor_248-3">[248-3]</a>
+ <i>Bernouilli</i>, Populationistik, 51 ff. <i>Quetelet</i>, Recherches
+ statist. sur le Royaume des Pays-Bas, 1827, 1, 9, and Du Système social,
+ 1848, 176 ff., specially called attention to the important differences in
+ this relation, between the productive and unproductive years of life. Thus
+ it should not be forgotten, when reading of the greater mortality of the
+ poor quarters of Paris, that strangers who are for the most part in the
+ vigorous years of life, live there least of all.</p>
+
+ <p class="footnote"> <a name="footnote_248-4" id="footnote_248-4"></a>
+ <a href="#fnanchor_248-4">[248-4]</a>
+ In Russia, it seems that only 36 per cent. of all those born outlive their
+ 20th year; in England, 55 per cent. (<i>Porter</i>, Progress, ch. I, 29.)
+ The Russian peasants are said to have from 10 to 12 children, only about
+ one-third of whom grow to maturity, (<i>v. Haxthausen</i>, I, 128.) In the
+ United States, the population was in 1820 divided into two nearly equal
+ parts as to age, the 16th year of age forming the dividing point; in
+ England the same was the case, only the dividing point was 20 years of
+ age. (<i>Tucker</i>, Progress of the United States, 16, 63.)</p>
+
+ <p class="footnote"> <a name="footnote_248-5" id="footnote_248-5"></a>
+ <a href="#fnanchor_248-5">[248-5]</a>
+ There were in</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Population">
+
+<tr><td></td><td class="center"><i>Years.</i></td><td class="center">
+<i>From 0 to 15<br />years of age.</i></td><td class="center"><i>From 16
+to 50<br />years of age.</i></td><td class="center"><i>Over 50<br />years
+of age.</i></td></tr>
+
+<tr><td></td><td></td><td class="center">Per 1,000 of the pop.</td>
+<td class="center">Per 1,000 of the pop.</td>
+<td class="center">Per 1,000 of the pop.</td></tr>
+
+<tr><td class="left">Belgium,</td><td class="center">1846</td>
+<td class="center">323</td><td class="center">509</td>
+<td class="center">168</td></tr>
+
+<tr><td class="left">Prussia,</td><td class="center">1849</td>
+<td class="center">370</td><td class="center">504</td>
+<td class="center">126</td></tr>
+
+<tr><td class="left">Great Britain,</td><td class="center">1851</td>
+<td class="center">354</td><td class="center">504</td>
+<td class="center">142</td></tr>
+
+<tr><td class="left">Holland,</td><td class="center">1849</td>
+<td class="center">333</td><td class="center">509</td>
+<td class="center">158</td></tr>
+
+<tr><td class="left">Saxony,</td><td class="center">1840</td>
+<td class="center">339</td><td class="center">505</td>
+<td class="center">156</td></tr>
+
+<tr><td class="left">Sweden,</td><td class="center">1850</td>
+<td class="center">328</td><td class="center">511</td>
+<td class="center">161</td></tr>
+
+</table></div>
+
+ <p class="footnote">In Great Britain, the census of 1851 gave 596,030
+ persons over 70 years of age; 9,847, over 90; 2,038, over 95; 319, over
+ 100 years of age. (Athen., 12 Aug., 1854.) In France, in 1851, there were
+ 1,319,960 persons seventy years of age and over. In the United States the
+ population of<span style="white-space:nowrap;">&mdash;</span></p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="US Population">
+
+<tr><td></td><td class="center" colspan="2"><i>Per English square
+mile.</i></td><td class="center" colspan="2"><i>Relative number of children
+under ten years.</i></td></tr>
+
+<tr><td></td><td class="center">1800</td><td class="center">1840</td>
+<td class="center">1800</td><td class="center">1840</td></tr>
+
+<tr><td></td><td></td><td></td><td class="center">per cent.</td>
+<td class="center">per cent.</td></tr>
+
+<tr><td class="left">New England,</td><td class="center">19.2</td>
+<td class="center">34.8</td><td class="center">63.5</td>
+<td class="center">51.1</td></tr>
+
+<tr><td class="left">The Middle States,</td><td class="center">15.3</td>
+<td class="center">43.6</td><td class="center">70.7</td>
+<td class="center">55.7</td></tr>
+
+<tr><td class="left">The Southern States,</td><td class="center"><span
+class="hidenum">1</span>8.9</td><td class="center">15.9</td>
+<td class="center">73.0</td><td class="center">67.8</td></tr>
+
+<tr><td class="left">The Southwestern States,</td><td class="center">
+<span class="hidenum">1</span>1.3</td><td class="center">13.7</td>
+<td class="center">77.6</td><td class="center">75.5</td></tr>
+
+<tr><td class="left">The Northwestern States,</td><td class="center">
+<span class="hidenum">1</span>2.3</td><td class="center">25.5</td>
+<td class="center">84.9</td><td class="center">73.8</td></tr>
+</table></div>
+
+ <p class="footnote">In the whole Union, in 1830, the age classes up to 20
+ years embraced 56.12 per cent. of the population; in 1840, 54.62 per cent;
+ in 1850, 51.85 per cent. Compare <i>Horn</i>, Bevölk. Studien, I, 126;
+ <i>Wappäus</i>, A. Bevölk. Stat., II, 44, 125 ff., 88; <i>Tucker</i>,
+ Progress of the United States, 105.</p>
+
+ <p class="footnote"> <a name="footnote_248-6" id="footnote_248-6"></a>
+ <a href="#fnanchor_248-6">[248-6]</a>
+ As <i>Wappäus</i> says that in America an equal number of adults must work
+ for at least a third larger number of children than in Europe: "a much
+ more unfavorable situation, so far as production-force is concerned." (A.
+ Bevölk. St., II, 44.)</p>
+
+ <p class="footnote"> <a name="footnote_248-7" id="footnote_248-7"></a>
+ <a href="#fnanchor_248-7">[248-7]</a>
+ <i>Horn</i>, I, 127 ff. The Becoming is not only more pleasant than the
+ Having become, but it may even stand higher in so far as the latter
+ consists only in being resigned to further development.</p>
+
+ <p class="footnote"> <a name="footnote_248-8" id="footnote_248-8"></a>
+ <a href="#fnanchor_248-8">[248-8]</a>
+ <i>Les mendiants sont dans le cas des peuples naissants</i> etc.
+ <i>Montesquieu</i>, E. der Lois, LXXIII, 11. In England and Wales in
+ 1851-60, there died yearly before their sixth year, 7.24 per cent. of all
+ male children born, but in the families of peers, only 2.22 per cent.
+ (Stat. Journal, Sept., 1865.) If we grade the quarters of the city of
+ Berlin according to the well-being of their inhabitants, we find that in
+ the lower, the number of married men between 18 and 25 years is
+ successively greater<a name= "fnanchor_TN84" id= "fnanchor_TN84"></a><a
+ href= "#footnote_TN84" class= "fnanchor">[TN 84]</a> 1.1, 1.4, 2.4 and 3.4
+ per cent. (<i>Schwabe</i>, Völkszählung von, 1871, 24.)</p>
+
+<p class="p2 center"><a name="S249"></a>SECTION CCXLIX.</p>
+
+<p class="center smaller">HISTORY OF POPULATION.&mdash;IN PERIODS OF
+DECLINE.</p>
+
+<p>Nations involved in political and religious decline are wont to lose the
+moral foundation of the situation last described. Here, therefore, again,
+both the repressive (which are almost always immoral) tendencies counter to
+over-population, and the viciously preventive occupy the most prominent
+place. <span class='pagenum'>[Pg 319]</span> We may most completely observe
+this spectacle among the heathen nations of later antiquity. But,
+unfortunately, even among modern nations, we find some analogies to the
+ancient, to which the political economist may point with the finger of
+warning. "For unto every one that hath shall be given, and he shall have
+abundance; but from him that hath not shall be taken away even that which
+he hath." This universally applicable truth explains the fact that all
+successive acts of immorality, the more frequently they occur the less
+severely are they branded by public opinion.</p>
+
+<p>A. We are not warranted, from the relative<a name="fnanchor_249-1" id=
+"fnanchor_249-1"></a><a href="#footnote_249-1" class="fnanchor">[249-1]</a>
+number of illegitimate births, to draw too direct an inference in relation
+to the morality of a people. Where, for instance, as in the kingdom of
+Saxony, the annual frequency of marriage was 0.017 of the population, every
+illegitimate birth bears evidence of a greater absence of self control than
+in Bavaria, where, on every one thousand living, there were only thirteen
+marriages a year.<a name="fnanchor_249-2" id="fnanchor_249-2"></a><a
+href="#footnote_249-2" class="fnanchor">[249-2]</a> In many quarters, where
+the economic relations are very stable, and where peasant estates
+(<i>geschlossene Bauergüter</i>) are subject to a species of entailing,
+where consequently the son can engage in marriage only after the death of
+the father, illegitimate children are in great part legitimatized by
+subsequent marriage at a later time, and meanwhile brought up in the family
+of the mother like legitimate children.<a name="fnanchor_249-3"
+id="fnanchor_249-3"></a><a href="#footnote_249-3" class=
+"fnanchor">[249-3]</a> Evidently <span class='pagenum'>[Pg 320]</span> the
+guilty inconstancy creative of ephemeral <i>liaisons</i>, and the neglect
+of the children born of them, do not here produce the sad effects which
+they are wont to in the large cities, where illegitimate relations are made
+and dissolved with shocking rapidity. However, births are seldom heard of
+in the case of ruined debauchees.</p>
+
+<p>At the same time, the frequency of illegitimate births is always an
+evidence that the rightful founding of a home is made difficult<a
+name="fnanchor_249-4" id="fnanchor_249-4"></a><a href="#footnote_249-4"
+class="fnanchor">[249-4]</a> by the economic condition of the police
+provisions <span class='pagenum'>[Pg 321]</span> of a country; and that the
+moral force of the people does not suffice to resist the temptation<a
+name="fnanchor_249-5" id="fnanchor_249-5"></a><a href="#footnote_249-5"
+class="fnanchor">[249-5]</a> which such condition and provisions suppose.
+In the latter respect, this phenomenon may be considered, not only as a
+symptom but also as a cause: since bastards are generally very badly
+brought up. A large parthenic population is always an element of great
+danger in a state.<a name="fnanchor_249-6" id="fnanchor_249-6"></a><a
+href="#footnote_249-6" class="fnanchor">[249-6]</a> The frequency of
+illegitimate children must, however, be designated as a tendency counter to
+over-population, for the reason that still-born births and early deaths
+occur much more frequently among them than among legitimate children.<a
+name="fnanchor_249-7" id="fnanchor_249-7"></a><a href="#footnote_249-7"
+class="fnanchor">[249-7]</a></p>
+
+<p><span class='pagenum'>[Pg 322]</span>B. The trade of the women of the
+town is indeed an exceedingly old one.<a name= "fnanchor_249-8" id=
+"fnanchor_249-8"></a><a href= "#footnote_249-8" class=
+"fnanchor">[249-8]</a> But this evil assumes large dimensions only where a
+large class of men and women have no prospect to marry at all, or only late
+in life; especially when, at the same time, families have become
+unaccustomed to keeping together for life.<a name= "fnanchor_249-9" id=
+"fnanchor_249-9"></a><a href= "#footnote_249-9"
+class="fnanchor">[249-9]</a> Prostitution may be considered a counterpoise
+to over-population, not only because of the polyandry it involves, but also
+of the infecundity of its victims.<a name="fnanchor_249-10" id=
+"fnanchor_249-10"></a><a href= "#footnote_249-10" class=
+"fnanchor">[249-10]</a> Even the <span class='pagenum'>[Pg 323]</span>
+diseases which it propagates are not without importance in this regard. The
+love of change and impatience of restraint which it produces keeps many a
+man who, economically considered, might very well engage in marriage, in a
+state of criminal celibacy.<a name= "fnanchor_249-11" id=
+"fnanchor_249-11"></a><a href= "#footnote_249-11" class=
+"fnanchor">[249-11]</a> This moral poisoning of the nation's blood is more
+pernicious in proportion as vice is decked with the charms of intellect,<a
+name="fnanchor_249-12" id="fnanchor_249-12"></a><a href="#footnote_249-12"
+class="fnanchor">[249-12]</a> and reflected in literature and art.<a
+name="fnanchor_249-13" id="fnanchor_249-13"></a><a href="#footnote_249-13"
+class="fnanchor">[249-13]</a> When Phryne had wealth enough to project the
+rebuilding of Thebes, and boldness enough to ask to be allowed to put this
+inscription on its walls: "Alexander destroyed them, but Phryne, the
+hetæra, rebuilt them," not only the dignity but the nationality of Greece
+was gasping for the last time for breath.<a name="fnanchor_249-14"
+id="fnanchor_249-14"></a><a href="#footnote_249-14" class=
+"fnanchor">[249-14]</a> <a name="fnanchor_249-15" id=
+"fnanchor_249-15"></a><a href="#footnote_249-15" class=
+"fnanchor">[249-15]</a></p>
+
+<p><span class='pagenum'>[Pg 324]</span>C. I know no sadder picture in all
+history than the wide diffusion and even sovereignty which unnatural vice
+possessed among the declining nations of antiquity. Egypt and Syria seem to
+have been the original seat of this moral plague.<a name="fnanchor_249-16"
+id="fnanchor_249-16"></a><a href="#footnote_249-16" class=
+"fnanchor">[249-16]</a> In Greece, there was a time noted for the
+brilliancy of its literature and art, when the poetic fancy, in its dreams
+of love, pictured to itself only the forms of beautiful boys; and that this
+love was generally an impure one, there is, unfortunately, no room to
+doubt.<a name="fnanchor_249-17" id="fnanchor_249-17"></a><a href=
+"#footnote_249-17" class="fnanchor">[249-17]</a> In more ancient Rome, it
+was most severely punished;<a name="fnanchor_249-18" id=
+"fnanchor_249-18"></a><a href="#footnote_249-18" class=
+"fnanchor">[249-18]</a> but afterwards, again, it seemed reprehensible to a
+Tibullus only when it was bought with money.<a name= "fnanchor_249-19"
+id="fnanchor_249-19"></a><a href="#footnote_249-19" class=
+"fnanchor">[249-19]</a> <span class='pagenum'>[Pg 325]</span> Even under
+Cæsar, a censor could threaten an ædile with a charge of sodomy; the latter
+reciprocate the threat, and think it witty to invite a man like Cicero to
+assist at the curious argument which such a case might call forth, before a
+pretor with a reputation of being guilty of the same vice.<a
+name="fnanchor_249-20" id="fnanchor_249-20"></a><a href= "#footnote_249-20"
+class="fnanchor">[249-20]</a> When the horrible deeds of which Tiberius was
+guilty are known, we cannot consider them capable of exaggeration. But
+Tiberius, at least, sought secrecy, while Nero, Commodus and Heliogabalus
+felt a special delight in the publicity of their shame.<a
+name="fnanchor_249-21" id="fnanchor_249-21"></a><a href= "#footnote_249-21"
+class="fnanchor">[249-21]</a> <a name=  "fnanchor_249-22" id=
+"fnanchor_249-22"></a><a href="#footnote_249-22" class="fnanchor">[249-22]
+</a> <a name="fnanchor_249-23" id= "fnanchor_249-23"></a><a
+href="#footnote_249-23" class= "fnanchor">[249-23]</a></p>
+
+ <p class="footnote"> <a name="footnote_249-1" id="footnote_249-1"></a>
+ <a href="#fnanchor_249-1">[249-1]</a>
+ The ratio between the number of illegitimate births and legitimate, so
+ generally brought forward, leads to no correct conclusions whatever. The
+ ratio between the number of illegitimate births, on the other hand, and
+ marriageable men and women, especially of those who are yet unmarried, may
+ afford a basis for valuable inferences. Compare <i>Hoffmann</i>, in the
+ Preuss. Staatszeitung, 1837, No. 18. In Prussia, nearly 75 per cent. of
+ all women between 17 and 75 are married. (<i>v. Viehbahn</i>, II,
+ 189.)</p>
+
+ <p class="footnote"> <a name="footnote_249-2" id="footnote_249-2"></a>
+ <a href="#fnanchor_249-2">[249-2]</a>
+ In Bavaria, not only was the frequency of marriage surprisingly small (one
+ marriage a year in every 151.59 inhabitants, while the average in 14
+ European countries was 1 in 123.9), but marriage was there contracted at a
+ surprisingly advanced age. Of 10,000 of both sexes engaging in marriage,
+ there were, in Bavaria, only 2,081 25 years of age and less, while in
+ England, there were 5,528. Compare <i>Wappäus</i>, A. Bevölk. Statistik,
+ II, 241, 270.</p>
+
+ <p class="footnote"> <a name="footnote_249-3" id="footnote_249-3"></a>
+ <a href="#fnanchor_249-3">[249-3]</a>
+ In Oldenburg, it is estimated that 48 per cent. of its illegitimate
+ children are legitimatized <i>per subsequens matrimonium</i>
+ (<i>Rau-Hanssen</i> Archiv. N. F., I, 7), in the agricultural districts of
+ Nassau even 70 per cent. (<i>Faucher's</i> Vierteljahrsschrift, 1864, II,
+ 19), in the whole of Bavaria, 15 per cent.; in the Palatinate, 29.7 per
+ cent. (<i>Hermann</i>, Bewegung der Bevolkerung, 20); in the Kingdom of
+ Saxony, 1865, at least 21 per cent. (Statist. Zeitschr. 1868, 184.) In
+ France 10 per cent. of the marriages contracted legitimatize children.
+ (<i>Legoyt</i>, Stat. Comp., 501); in Saxony, 1865, 11.7; in Bavaria up to
+ 1852, about 1/8 of the marriages belonged to this category; 1858-61, 1/7;
+ 1861-64, nearly 1/6. Compare Heft XII, of the official statistics. In the
+ manufacturing towns of France, especially the border ones, a large number
+ of the children of female operatives and of males having their domicile in
+ foreign parts, are legitimatized<a name= "fnanchor_TN85" id=
+ "fnanchor_TN85"></a><a href= "#footnote_TN85" class= "fnanchor">[TN
+ 85]</a> by marriage: thus in Mühlhausen, 23.7 per cent. Recherches
+ statist. sur M., 1843, 62.</p>
+
+ <p class="footnote"> <a name="footnote_249-4" id="footnote_249-4"></a>
+ <a href="#fnanchor_249-4">[249-4]</a>
+ In Mecklenburg-Schwerin there was one marriage</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Mecklenburg marriages">
+
+<tr><td></td><td class="center"><i>1841.</i><br />on every</td>
+<td class="center"><i>1850.</i><br />on every</td></tr>
+
+<tr><td class="left">On domanial lands,</td><td class="left">137
+of population.</td><td class="left">149 of population.</td></tr>
+
+<tr><td class="left">On manorial lands,</td><td class=
+"left">145&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</td> <td
+class="left">269&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</td></tr>
+
+<tr><td class="left">On monastery lands,</td><td class=
+"left">163&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</td> <td
+class="left">175&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</td></tr>
+
+<tr><td class="left">In the cities lands,</td><td class=
+"left">115&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</td> <td class="left">
+104&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</td></tr>
+
+</table></div>
+
+ <p class="footnote">The number of illegitimate births stood to the
+ aggregate number of births in 1800, as 1:16; in 1851, as 1:4.5; in
+ 1850-55, as 1:4.8; in 1856-59, as 1:5.04; in 1865, as 1:4.0; in 1866, as
+ 1:4.8; in 1867, as 1:5.33; in 1868, as 1:6.0; in 1869, as 1:7.2; in 1870,
+ as 1:7.08, In 260 localities, in 1851, 1/3 and more of the aggregate
+ number of births were illegitimate; in 209, ½ and more, and in 79 the
+ entire number! The small improvement afterwards made was probably due in
+ great part to emigration, which from 1850 to 1859 must have amounted to
+ 45,000. How relative the idea of over-population even in this respect is,
+ is shown by the small number of illegitimate births in very densely
+ populated parts of England&mdash;Lancashire, Middlesex, Warwick, Stafford,
+ West York&mdash;while districts as thinly populated as North York, Salop,
+ Cumberland, Westmoreland, have very many illegitimate births. The number
+ increases in the best educated districts, where their "education" begins
+ to cause them to make "prudent" and long delays in marrying.
+ (<i>Lumley</i>, Statistics of Illegitimacy: Statist. Journal, 1862.)</p>
+
+ <p class="footnote"> <a name="footnote_249-5" id="footnote_249-5"></a>
+ <a href="#fnanchor_249-5">[249-5]</a>
+ Strikingly more favorable influence of the <i>ecclesia pressa</i>. In
+ Prussia, in 1855, the Evangelicals had 12.3 legitimate births for one
+ illegitimate; the Catholics 19.4, the Jews 36.7, the Mennonites 211.5.
+ (<i>v. Viebahn</i>, II, 226.)</p>
+
+ <p class="footnote"> <a name="footnote_249-6" id="footnote_249-6"></a>
+ <a href="#fnanchor_249-6">[249-6]</a>
+ The relative number of illegitimate births in many nations of to-day is
+ unfortunately an increasing one. In France, in 1801, only 4.6 per cent. of
+ all live births were illegitimate; in 1811, 6.09; in 1821, 7.07; in 1830,
+ 7.2; in 1857, 7.5; 1861-65, 7.56 per cent. The German especially must
+ confess with deep shame that the southern half of the fatherland presents
+ a very unfavorable picture in this respect. Can a nation be free when its
+ capital, Vienna (1853-56), counts on an average 10,330 illegitimate and
+ 11,099 legitimate births? Compare <i>Stein-Wappäus</i>, Handbuch der
+ Geogr., IV, 1, 193. According to observations made between 1850 and 1860,
+ in England between 1845 and 1860, there were in Holland for every 1,000
+ legitimate births 44 illegitimate, in Spain 59, in England and Wales 71,
+ in France 80, in Belgium 86, in Prussia 91, in Norway 96, in Sweden 96, in
+ Austria 98, in Hanover 114, in Saxony 182, in Bavaria 279. (Statist.
+ Journ., 1868, 153.) Compare <i>Wappäus</i>, A. Bevölk. Stat., II, 387. In
+ Russia, according to <i>v. Lengefeld</i>, 36.9; in the electorate of Mark,
+ 1724-31, 1 in 18. (<i>Süssmilch</i>, I, § 239.) During the 17th century it
+ is estimated that the ratio of illegitimate to legitimate births in
+ Merseburg was as 1:22-30, in Quedlinburg as 1:23-24, in Erfurt as 1:13½.
+ (From the Kirchenbücher in <i>Tholuck's</i> Kircliches Leben, etc., I, 315
+ seq.) In Berlin in 1640, only 1-2 per cent. of illegitimate births.
+ (<i>König</i>, Berlin, I, 235.) In Leipzig, 1696-1700, 3 per cent.;
+ 1861-65, 20 per cent. <i>Knapp</i>, Mitth. des. Leipz. Statist. Bureaus,
+ VI, p. X.</p>
+
+ <p class="footnote"> <a name="footnote_249-7" id="footnote_249-7"></a>
+ <a href="#fnanchor_249-7">[249-7]</a>
+ Thus, in 1811-20, the still-born births in Berlin, Breslau and Königsberg
+ amounted to five per cent. of the legitimate, and to eight per cent. of
+ the illegitimate; in the country places in Prussia, to 2¾ and 4¾ per cent.
+ Of 384 illegitimate children born in Stettin in 1864, 45 were still-born
+ and 279 died in their first year. (<i>v. Oettingen</i>, Moralstatistik,
+ 879.) In the whole monarchy, 1857-58, three to 4 per cent. of legitimate
+ children died at birth, and 5 to 6 per cent. of the illegitimate; while
+ during the first year of their age 18-19 per cent. of the former, and
+ 34-36 per cent. of the latter, died (<i>v. Viebahn</i>,<a name=
+ "fnanchor_TN86" id= "fnanchor_TN86"></a><a href= "#footnote_TN86" class=
+ "fnanchor">[TN 86]</a> II, 235). In France, in 1841-54, of the legitimate
+ births, an average of 4 per cent., and of illegitimate 7 per cent., was
+ still-born; and the probability of death during the first year of life was
+ 2.12 times as great for an illegitimate child as for one born in lawful
+ wedlock. (<i>Legoyt.</i>) After the first year the proportion changes.</p>
+
+ <p class="footnote"> <a name="footnote_249-8" id="footnote_249-8"></a>
+ <a href="#fnanchor_249-8">[249-8]</a>
+ Genesis, 38; Joshua, 1, ff.; Judges, 16, 1, ff. It must not here be
+ overlooked that the Canaanites possessed a much higher degree of economic
+ culture than the contemporary Jews. In Athens, Solon seems to have
+ established brothels to protect virtuous women. (<i>Athen.</i>, XIII, 59.)
+ In France, as early a ruler as Charlemagne took severe measures against
+ prostitution. (<i>Delamarre</i>, Traité de Police, I, 489.) Compare L.
+ Visigoth., III, 4, 17, 5.</p>
+
+ <p class="footnote"> <a name="footnote_249-9" id="footnote_249-9"></a>
+ <a href="#fnanchor_249-9">[249-9]</a>
+ Travelers are wont to be the first to make use of prostitution. I need
+ only mention the extremely licentious worship of Aphrodite (Aschera) which
+ the Phoenicians spread on every side: in Cypria, Cytherae, Eryx, etc.
+ Connected with this was the mercenary character of the Babylonian women
+ (<i>Herodot.</i>, I, 199); similarly in Byblos (<i>Lucian</i>, De dea
+ Syria, 6); Eryx (<i>Strabo</i>, VI, 272: <i>Diod.</i>, IV, 83), in Cypria;
+ (<i>Herodot.</i>, I, 105, 199); Cytheria (<i>Pausan.</i>, I, 14); Athenian
+ prostitutes in Piräeus and very early Ionian in Naucratis.
+ (<i>Herodot.</i>, II, 135.) In all the oases on the grand highways of the
+ caravans, the women have a very bad reputation. Temporary marriages of
+ merchants in Yarkand, Augila, etc. (<i>Ritter</i>, Erdkunde, I, 999, 1011,
+ 1013, II, 360; VII, 472; XIII, 414.) It is remarkable how the legislation
+ of German cities at the very beginning of their rise was directed against
+ male bawds and prostitutes; at times with great severity, the death
+ penalty being provided for against the former and exile against the
+ latter, while the earlier legislation of the people was directed only
+ against rape. (<i>Spittler</i>, Gesch. Hannovers, I, 57 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_249-10" id="footnote_249-10"></a>
+ <a href="#fnanchor_249-10">[249-10]</a>
+ Conception in the case of women of the town is indeed not a thing unheard
+ of, but abortion generally takes place or is produced; their confinement
+ is extremely dangerous, and nearly all the children born of them die in
+ the first year of their life. (<i>Parent Du Châtelet</i>,<a name=
+ "fnanchor_TN87" id= "fnanchor_TN87"></a><a href= "#footnote_TN87" class=
+ "fnanchor">[TN 87]</a> Prostitution de Paris, 1836, I, ch. 3.)</p>
+
+ <p class="footnote"> <a name="footnote_249-11" id="footnote_249-11"></a>
+ <a href="#fnanchor_249-11">[249-11]</a>
+ In the time of Demosthenes, even the more rigid were wont to say that
+ people kept hetæras for pleasure, concubines to take better care of them,
+ wives for the procreation of children and as housekeepers. (adv. Neæram.,
+ 1386.)</p>
+
+ <p class="footnote"> <a name="footnote_249-12" id="footnote_249-12"></a>
+ <a href="#fnanchor_249-12">[249-12]</a>
+ In Greece as well as in Rome, only slaves, freedmen and strangers sold
+ their bodies for hire; but under the Emperors, prostitution ascended even
+ into the higher classes. (<i>Tacit.</i>, Ann. II, 85; <i>Sueton.</i>,
+ Tiber, 35; <i>Calig.</i>,41; <i>Martial</i>, IV, 81.) Concerning the
+ Empress Messalina, see <i>Juvenal</i>, VI, 117 ff. Address of Heliogabalus
+ to the assembled courtesans of the capital, whom the Emperor harrangued as
+ <i>commilitones</i>. (<i>Lamprid</i>, V.; Heliogabali, 26.) In Cicero's
+ time, even a man of such exalted position as M. Coelius was paid for
+ cohabitation with Clodia, and even moved into her house. (<i>Drumann</i>,
+ Gesch. Roms., II, 377.) Even in Socrates' time, the hetæras at Athens were
+ probably better educated than wives: Compare <i>Xenophon</i>, Memorabilia,
+ III, 11.</p>
+
+ <p class="footnote"> <a name="footnote_249-13" id="footnote_249-13"></a>
+ <a href="#fnanchor_249-13">[249-13]</a>
+ On the Pornographs of antiquity, see <i>Athen.</i>, XIII, 21. Even
+ <i>Aristophanes</i> was acquainted with some of the species. (Ranæ, 13, 10
+ ff.) Compare <i>Aristot.</i>, Polit., III, 17. <i>Martial</i>, XII, 43,
+ 96. Of modern nations, Italy seems to have been the first to produce such
+ poison flowers: <i>Antonius Panormita</i> (ob. 1471); <i>Petrus
+ Aretinus</i> (ob. 1556). Of the disastrous influence on morals, during his
+ time, of obscene pictures, <i>Propert</i>, II, 5, complains. It is
+ dreadfully characteristic that even a Parrhasios painted wanton deeds of
+ shame. (<i>Sueton.</i>, Tiber, 44), and that Praxiteles did not disdain to
+ glorify the triumph of a <i>meretrix gaudens</i> over a <i>flens
+ matrona</i>. (<i>Plin.</i>, H. N., XXXIV, 19.) But indeed also Giulio
+ Romano!</p>
+
+ <p class="footnote"> <a name="footnote_249-14" id="footnote_249-14"></a>
+ <a href="#fnanchor_249-14">[249-14]</a>
+ Compare <i>Jacobs'</i> Vermischte Schriften, IV, 311 ff.: <i>Murr</i>, Die
+ Mediceische<a name= "fnanchor_TN88" id= "fnanchor_TN88"></a><a href=
+ "#footnote_TN88" class= "fnanchor">[TN 88]</a> Venus und Phryne, 1804.</p>
+
+ <p class="footnote"> <a name="footnote_249-15" id="footnote_249-15"></a>
+ <a href="#fnanchor_249-15">[249-15]</a>
+ The number of registered prostitutes in Paris, in 1832, amounted to 3,558;
+ in 1854, to 4,620 (<i>Parent Du Châtelet</i>,<a name= "fnanchor_TN89" id=
+ "fnanchor_TN89"></a><a href= "#footnote_TN89" class= "fnanchor">[TN
+ 89]</a> ch. 1, 2); in 1870, to 3,656. These figures are evidently much
+ below the real ones. Compare the extracts from the abundant, but, in
+ particulars, very unreliable literature on the great sin of great cities,
+ in <i>v. Oettingen</i>, Moralstatistik, 452 ff. According to the Journal
+ des Econ., Juin, 1870, 378 ff., there was an aggregate of 120,000
+ <i>femmes, qui ne vivent que de galanterie</i>.</p>
+
+ <p class="footnote"> <a name="footnote_249-16" id="footnote_249-16"></a>
+ <a href="#fnanchor_249-16">[249-16]</a>
+ <i>Nequitias tellus scit dare nulla magis</i>, says <i>Martial</i>, of
+ Egypt. Worship of Isis, in Rome: <i>Juvenal</i>, VI, 488 ff. See, further,
+ <i>Herodot.</i>, II, 46, 89; <i>Strabo</i>, XVII, 802. On Syria, see
+ Genesis, 19, 4 ff., 9 seq.; Leviticus, 18, 22 seq., 20, 13, 15. The
+ <i>cunnilingere</i> of Phoenician origin. (<i>Heysch</i>, <i>v.</i>
+ σκύλαξ.<a name= "fnanchor_TN90" id= "fnanchor_TN90"></a><a href=
+ "#footnote_TN90" class= "fnanchor">[TN 90]</a>) Frightful frequency of
+ the <i>fellare</i> and <i>irrumare</i> in Tarsis: <i>Dio Chrysost.</i>,
+ Orat, 33. The Scythians also seem to have learned the νοῦσος θήλεια<a
+ name= "fnanchor_TN91" id= "fnanchor_TN91"></a><a href= "#footnote_TN91"
+ class= "fnanchor">[TN 91]</a> (pederasty?) in Syria: <i>Herodot.</i>, I,
+ 105. Similarly during the crusades.</p>
+
+ <p class="footnote"> <a name="footnote_249-17" id="footnote_249-17"></a>
+ <a href="#fnanchor_249-17">[249-17]</a>
+ Compare <i>Becker</i>, Charicles, I, 347 ff. <i>Æschines</i> condemns this
+ vice only when one prostitutes himself for money (in Timarch., 137).
+ <i>Lysias</i>, adv. Simon, unhesitatingly speaks to a court about a
+ contract for hire for purposes of pederasty. Compare <i>Æschin.</i>, l.
+ c., 159, 119, where such a contract is formally sued on. Industrial tax on
+ pederastic brothels. (<i>Æschin.</i>. I, c. R.) <i>Aristophanes</i>
+ alludes to obscenity still more shameful: Equitt., 280 ff.; Vespp., 1274
+ ff., 1347; Pax., 885; Ranæ, 1349.</p>
+
+ <p class="footnote"> <a name="footnote_249-18" id="footnote_249-18"></a>
+ <a href="#fnanchor_249-18">[249-18]</a>
+ <i>Valer. Max.</i>, VI, 1, 7, 9 ff. The Lex Julia treats it only as
+ <i>stuprum</i>: L. 34, § 1. Digest, 48, 5; Paulli Sentt. receptt., II, 26,
+ 13. Permitted later until Philip's time, in consideration of a
+ license-fee. <i>Aurel. Vict.</i>, Caes., 28. Earliest traces of this vice
+ in the year 321 before Christ. (<i>Suidas</i>, v. Γαίος Λαιτώριος.)<a name=
+ "fnanchor_TN92" id= "fnanchor_TN92"></a><a href= "#footnote_TN92" class=
+ "fnanchor">[TN 92]</a> Later, it caused much scandal when the great
+ Marcellus accused the ædile Scatinus of making shameful advances to his
+ son. (<i>Plutarch</i>, Marcell., 2.)</p>
+
+ <p class="footnote"> <a name="footnote_249-19" id="footnote_249-19"></a>
+ <a href="#fnanchor_249-19">[249-19]</a>
+ <i>Tibull</i>, I, 4. Even the "severe" <i>Juvenal</i> was not entirely
+ disinclined to pederasty, and <i>Martial</i> does not hesitate to boast of
+ his own pederasty and onanism. (II, 43, XI, 43, 58, 73, XII, 97.)</p>
+
+ <p class="footnote"> <a name="footnote_249-20" id="footnote_249-20"></a>
+ <a href="#fnanchor_249-20">[249-20]</a>
+ <i>Cicero</i>, ad. Div., VIII, 12, 14.</p>
+
+ <p class="footnote"> <a name="footnote_249-21" id="footnote_249-21"></a>
+ <a href="#fnanchor_249-21">[249-21]</a>
+ <i>Sueton.</i>, Tiber, 43 ff.; Nero, 27 ff. <i>Tacit.</i>, Ann., VI, 1;
+ Lamprid. Commod., 5, 10 seq.; Heliog. passim. On the <i>greges
+ exoletorum</i>, see also <i>Dio Cass.</i>, LXII, 28; LXIII, 13;
+ <i>Tacit.</i>, Ann., XV, 37. <i>Tatian</i>, ad Graecos, p. 100. Even
+ Trajan, the best of the Roman emperors, held similar ones. (Ael. Spartian,
+ V, Hadr., 2.) Trade in the prostitution of children at the breast.
+ (<i>Martial</i>, IX, 9.) The collection of nearly all the obscene passages
+ in the ancient classics elucidated with a shameful knowledge of the
+ subject in the additions to <i>F. C. Forberg's</i> edition of the
+ Hermaphroditus of <i>Antonius Panormita</i>, 1824.</p>
+
+ <p class="footnote"> <a name="footnote_249-22" id="footnote_249-22"></a>
+ <a href="#fnanchor_249-22">[249-22]</a>
+ How long this moral corruption lasted may be inferred from the glaring
+ contrast between the purity of the Vandals at the time of the migration of
+ nations. Compare <i>Salvian</i>, De Gubern. Dei, VII, passim.</p>
+
+ <p class="footnote"> <a name="footnote_249-23" id="footnote_249-23"></a>
+ <a href="#fnanchor_249-23">[249-23]</a>
+ In keeping with the vicious counter tendencies described in this section,
+ is the increasing frequency of the rape of children in France. The average
+ number of cases between 1826 and 1830 was 136; between 1841 and 1845, 346;
+ between 1856 and 1859, 692. Infanticide also increased between 1826 and
+ 1860, 119 per cent. (<i>Legoyt</i>, Stat. comparée, 394.)</p>
+
+<p class="p2 center"><a name="S250"></a>SECTION CCL.</p>
+
+<p class="center smaller">INFLUENCE OF THE PROFANATION OF MARRIAGE ON
+POPULATION.</p>
+
+<p>D. In the preceding paragraphs, we treated of the wild shoots of the
+tree of population. But the roots of the tree are still more directly
+attacked by all those influences which diminish the sacredness of the
+marriage bond. It is obvious how heartless <i>marriages de
+convenance</i>,<a name= "fnanchor_250-1" id= "fnanchor_250-1"></a><a
+href="#footnote_250-1" class="fnanchor">[250-1]</a> inconsiderate divorces
+<span class='pagenum'>[Pg 326]</span> and frequent adulteries mutually
+promote one another. And the period of Roman decline also is the classic
+period of this evil. I need only cite the political speculation in which
+Caesar gave his only daughter to the much older Pompey, or the case of
+Octavia, who when pregnant was compelled to marry the libertine Antonius.<a
+name="fnanchor_250-2" id= "fnanchor_250-2"></a><a href="#footnote_250-2"
+class="fnanchor">[250-2]</a> Instead of the Lucretias and Virginias of
+older and better times, we now find women of whom it was said: <i>non
+consulum numero, sed maritorum annos suos computant</i>.<a name=
+"fnanchor_250-3" id="fnanchor_250-3"></a><a href= "#footnote_250-3"
+class="fnanchor">[250-3]</a> In the numerous class of young people <span
+class='pagenum'>[Pg 327]</span> who live without the prospect of any
+married happiness of their own, we find a multitude of dangerous persons
+who ruin the married happiness of others, especially where marriage has
+been contracted between persons too widely separated by years.
+<i>Corrumpere et corrumpi sæculum vocatur.</i> (<i>Tacitus</i>).<a
+name="fnanchor_250-4" id="fnanchor_250-4"></a><a href="#footnote_250-4"
+class="fnanchor">[250-4]</a> It is easy to understand how all this must
+have diminished the desire of men to marry. Even Metellus Macedonicus (131
+before Christ) had declared marriage to be a necessary evil.<a name=
+"fnanchor_250-5" id= "fnanchor_250-5"></a><a href= "#footnote_250-5" class=
+"fnanchor">[250-5]</a> <a name="fnanchor_250-6" id="fnanchor_250-6"></a><a
+href="#footnote_250-6" class="fnanchor">[250-6]</a></p>
+
+<p><span class='pagenum'>[Pg 328]</span>In such ages young girls are kept
+subject to a convent-like discipline, that their reputation may be
+protected and that they may be able to get husbands; but once married they
+are wont to be all the more lawless. In a pure moral atmosphere, precisely
+the opposite course obtains.<a name= "fnanchor_250-7" id=
+"fnanchor_250-7"></a><a href= "#footnote_250-7" class=
+"fnanchor">[250-7]</a></p>
+
+<p>And so it has been frequently observed, that among declining nations the
+social differences between the two sexes are first obliterated and
+afterwards even the intellectual differences. The more masculine the women
+become, the more effeminate become the men. It is no good symptom when
+there are almost as many female writers and female rulers as there are
+male. Such was the case, for instance, in the Hellenistic kingdoms, and in
+the age of the Cæsars.<a name="fnanchor_250-8" id="fnanchor_250-8"></a><a
+href="#footnote_250-8" class="fnanchor">[250-8]</a> What to-day <span
+class='pagenum'>[Pg 329]</span> is called by many the emancipation of woman
+would ultimately end in the dissolution of the family, and, if carried out,
+render poor service to the majority of women. If man and woman were placed
+entirely on the same level, and if in the competition between the two sexes
+nothing but an actual superiority should decide, it is to be feared that
+woman would soon be relegated to a condition as hard as that in which she
+is found among all barbarous nations. It is precisely family life and
+higher civilization that have emancipated woman. Those theorizers who, led
+astray by the dark side of higher civilization, preach a community of
+goods, generally contemplate in their simultaneous recommendation of the
+emancipation of woman a more or less developed form of a community of
+wives. The grounds of the two institutions are very similar. The use of
+property and marriage is condemned because there is evidence of so much
+abuse of both. Men despair of making the advantages that accompany them
+accessible to all, and hence would refuse them to every one; they would
+improve the world without asking men to make a sacrifice of their evil
+desires. The result, also, would be about the same in both cases. (§ 81.)
+So far would prostitution and illegitimacy be from disappearing that every
+woman would be <span class='pagenum'>[Pg 330]</span> a woman of the town
+and every child a bastard. There would, indeed, be a frightful hinderance
+under such circumstances to the increase of population. The whole world
+would be, so to speak, one vast foundling asylum.<a name="fnanchor_250-9"
+id="fnanchor_250-9"></a><a href="#footnote_250-9" class=
+"fnanchor">[250-9]</a></p>
+
+<p><span class='pagenum'>[Pg 331]</span>But there is another sense to the
+expression emancipation of woman. It should not be ignored that, in fully
+peopled countries, there is urgent need of a certain reform in the social
+condition of woman. The less the probability of marriage for a large part
+of the young women of a country becomes, the more uncertain the refuge
+which home with its slackened bonds offers them for old age, the more
+readily should the legal or traditional barriers which exclude women from
+so many callings to which they are naturally adapted be done away with.<a
+name="fnanchor_250-10" id="fnanchor_250-10"></a><a href="#footnote_250-10"
+class="fnanchor">[250-10]</a> This is only a continuation of the course of
+things which has led to the abolition of the old guardianship of the sex.
+It may be unavoidable not to go much farther sometimes; but such a
+necessity is a lamentable one.<a name="fnanchor_250-11" id="fnanchor_250-11">
+</a><a href="#footnote_250-11" class="fnanchor">[250-11]</a> The best
+division of labor is that which makes the woman the glory of her household,
+only it is unfortunately frequently impossible.</p>
+
+ <p class="footnote"> <a name="footnote_250-1" id="footnote_250-1"></a>
+ <a href="#fnanchor_250-1">[250-1]</a>
+ This expression is applicable only in times of higher civilization where
+ individual disposition of self is considered the most essential want.
+ During the middle ages, when the family tie is yet so strong, the contract
+ of marriage was generally formed by the family; but this was not, as a
+ rule, felt a restraint. In France, at the present time, of 1,000 men who
+ marry before their 20th year, 30.8 marry women from 35 to 50 years of age,
+ and 4.8 who marry women over 50 years of age. (<i>Wappäus</i>, A.
+ Bevölkerung. Stat. II, 291.)</p>
+
+ <p class="footnote"> <a name="footnote_250-2" id="footnote_250-2"></a>
+ <a href="#fnanchor_250-2">[250-2]</a>
+ <i>Propertius</i> bitterly complains of the corruption prevalent in love
+ affairs in his time. (III, 12.) In the Hellenic world, also, among the
+ successors of Alexander the Great, there was a revoltingly large number of
+ <i>marriages de convenance</i>, so that even the old Seleucos took to wife
+ the grand-daughter of his competitor Antegonos, Lysimachos the daughter of
+ Ptolemy etc. <i>Dante's</i> lament over the anxiety of fathers to whom
+ daughters are born concerning their future dowry: Paradiso, XV, 103.
+ Florentine law of 1509, against large dowries: <i>Machiavelli</i>, Lett.
+ fam., 60. In the United States, marriage dowries are of little importance.
+ (<i>Graf Görtz</i>, Reise um die Welt, 116.)</p>
+
+ <p class="footnote"> <a name="footnote_250-3" id="footnote_250-3"></a>
+ <a href="#fnanchor_250-3">[250-3]</a>
+ <i>Seneca</i>, de Benef., III, 16&mdash;a frightful chapter. Also, I, 9.
+ <i>Juvenal</i> speaks of ladies who in five years had married eight men
+ (IV, 229, seq.), and <i>Jerome</i> saw a woman buried by her 23d husband,
+ who himself had had 21 wives, one after another, (ad. Ageruch, I, 908.)
+ The first instance of a formal divorce <i>diffareatio</i> is said to have
+ occurred in the year 523, after the building of the city (<i>Gellius</i>,
+ IV, 3), a clear proof that the Romulian description of marriage, as
+ κοινωνία ἁπάντων ἱερῶν καὶ χρημάτων<a name= "fnanchor_TN93" id=
+ "fnanchor_TN93"></a><a href= "#footnote_TN93" class= "fnanchor">[TN
+ 93]</a> (Dionys., A. R. II., 25), was long a true one. The old
+ manus-marriage certainly supposes great confidence of the wife and her
+ parents in the fidelity of the husband, while the marriage law of the time
+ of the emperors relating to estates never lost sight of the possibility of
+ divorce. The facility of obtaining amicable divorces (the most dangerous
+ of all) appears from the gifts allowed, <i>divorti causa</i>, in L., 11,
+ 12, 13, 60, 61, 62; Dig., XXIV, 1. In Greece, we meet with the
+ characteristic contrast, that, in earlier times, wives were bought, but
+ that later, large dowries had to be insured to them or the risk of divorce
+ at pleasure be assumed. (<i>Hermann</i>, Privataltherthümer, § 30.) How
+ women themselves married again, even on the day of their divorce, see
+ <i>Demosth.</i>, adv. Onet., 873; adv. Eubul., 1311. On Palestine, see
+ Gospel of <i>John</i>, 4, 17 ff. Concerning present Egypt, where
+ prostitution is carried on especially by cast-off wives, see
+ <i>Wachenhusen</i>, vom ägypt, armen Mann, II, 139. During the great
+ French revolution, divorces were so easily obtained that but little was
+ wanted to make a community of wives. (Vierzig Bücher, IV, 205; Handbuch
+ des französischen<a name= "fnanchor_TN94" id= "fnanchor_TN94"></a><a
+ href= "#footnote_TN94" class= "fnanchor">[TN 94]</a> Civilrechts, §
+ 450.) The more divorces there are in a Prussian province, the more
+ illegitimate births also. Thus, for instance, Brandenburg, 1860-64, had
+ 1,721 divorces, and one illegitimate birth for every 7.8 legitimate
+ (max.). Rhenish Prussia, four divorces and one illegitimate birth for
+ every 25.4 legitimate (min.). In the cities of Saxony, it is estimated
+ there are, for every 10,000 inhabitants, 36 divorced persons; in the
+ country, only 19 (<i>Haushofer</i>, Statistik, 487 seq.); in Württemberg,
+ 20; Thuringia, 33; all Prussia, 19; Berlin, 83. (<i>Schwabe</i>,
+ Volkszählung von, 1867 p. XLV.)</p>
+
+ <p class="footnote"> <a name="footnote_250-4" id="footnote_250-4"></a>
+ <a href="#fnanchor_250-4">[250-4]</a>
+ <i>Cicero</i>, in his speech for Cluentius, gives us a picture of the
+ depth to which families in his time had fallen through avarice, lust,
+ etc., which it makes one shudder to contemplate. Moreover, of the numerous
+ families mentioned in <i>Drumann's</i> history, there are exceedingly few
+ which, either actively or passively had not had some share in some odious
+ scandal. Concerning even Cato, see <i>Plutarch</i>,<a name=
+ "fnanchor_TN95" id= "fnanchor_TN95"></a><a href= "#footnote_TN95" class=
+ "fnanchor">[TN 95]</a> Cato, II, 25. Messalina's systematic patronage of
+ adultery: <i>Dio Cass.</i>, LX, 18.</p>
+
+ <p class="footnote"> <a name="footnote_250-5" id="footnote_250-5"></a>
+ <a href="#fnanchor_250-5">[250-5]</a>
+ <i>Gellius</i>, I, 6. In Greece, the same symptoms appear clearly enough,
+ even in <i>Aristophanes</i>: compare especially his Thesmophoriazusae.<a
+ name= "fnanchor_TN96" id= "fnanchor_TN96"></a><a href= "#footnote_TN96"
+ class= "fnanchor">[TN 96]</a> The frequently cited woman-hatred of
+ Euripides is part and parcel hereof; also the fact that since Socrates'
+ time, the most celebrated Grecian scholars lived in celibacy.
+ (<i>Athen.</i>, XIII, 6 seq.; <i>Plin.</i>, H. N., XXXV, 10.) Compare
+ Theophrast in Hieronym. adv. Jovin, I, 47, and <i>Antipater</i>, in
+ <i>Stobæus</i>, Serm., LXVII, 25.</p>
+
+ <p class="footnote"> <a name="footnote_250-6" id="footnote_250-6"></a>
+ <a href="#fnanchor_250-6">[250-6]</a>
+ In modern Italy, the monstrosity known as cicisbeism had not assumed any
+ great proportions before the 17th century, in consequence of the bad
+ custom which permitted no woman to appear in public without such
+ attendant, and ridiculed the husband for accompanying his own. In the time
+ of the republics, the conventual seclusion of girls and the duenna system
+ were not yet customary. (<i>Sismondi</i>, Gesch. der Italiennischen
+ Republiken, XVI, 251, ff., 498, ff.) Adultery punished with death in many
+ cities of medieval Italy: for instance, the Jus Municipale Vicentinum,
+ 135. Concerning the Spanish cicisbeos, who evince as much shamelessness as
+ fidelity, see <i>Townsend</i>, Journey, II, 142, ff. <i>Bourgoing</i>,
+ Tableau, II, 308, ff. The so-called <i>cortejos</i> are generally young
+ clerics or young officers.</p>
+
+ <p class="footnote"> <a name="footnote_250-7" id="footnote_250-7"></a>
+ <a href="#fnanchor_250-7">[250-7]</a>
+ A young American woman says to Mrs. Butler: "We enjoy ourselves before
+ marriage, but in your country girls marry to obtain a greater degree of
+ freedom, and indulge in the pleasures and dissipations of society." While
+ the young girls are always to be met with in the streets, wives are to be
+ found always in the kitchen. (<i>Mrs. Butler</i>, American Journal, II,
+ 183.) Compare <i>Beaumont</i>, Marie ou l'Esclavage aux États-Unis, I, 25
+ ff. 349. The opposite extreme in Italy, where, therefore, too favorable an
+ inference should not be drawn from the small number of illegitimate
+ births. Morally considered, one act of adultery outweighs 10
+ <i>stupra!</i> Even in the age of the renaissance,<a name= "fnanchor_TN97"
+ id= "fnanchor_TN97"></a><a href= "#footnote_TN97" class= "fnanchor">[TN
+ 97]</a> the free intercourse of young girls in England and the Netherlands
+ made a favorable impression on Italian travelers; <i>Bandello</i>, Nov.,
+ II, 42; IV, 27.</p>
+
+ <p class="footnote">Similar contrast in antiquity between Ionian and
+ Dorian women. Wives were more rigidly excluded from entering gymnasia for
+ males in Sparta than young girls. (<i>Pausan.</i>,<a name= "fnanchor_TN98"
+ id= "fnanchor_TN98"></a><a href= "#footnote_TN98" class= "fnanchor">[TN
+ 98]</a> V, 6, 5; VI, 20, 6; <i>Plato</i>, De Legg., VII, 805;
+ <i>Xenoph.</i>, De Rep. Laced., I.) Compare <i>K. O. Müller</i>, Dorier,
+ II, 276 ff.</p>
+
+ <p class="footnote"> <a name="footnote_250-8" id="footnote_250-8"></a>
+ <a href="#fnanchor_250-8">[250-8]</a>
+ <i>Plato</i>, De Legg., VI, 774, and <i>Aristotle</i>, Polit., II, 6; V,
+ 9, 6; VI, 2, 12, complain of the too great supremacy of women in their
+ day. Colossal land ownership of Lacedemonian women. (<i>Aristot.</i>,
+ Polit., II, 6, 11.) And yet even Plato advises that women be allowed to
+ participate in the gymnasia, in the assemblies and to hold public office,
+ etc. They were indeed different from men, but not as regards those
+ qualities which fit for ruling. (De Rep., V, 451 ff.; De Legg., VI, 780;
+ VII, 806.) That the Roman courtesans wore the male toga and were therefore
+ called togatæ. <i>Horat.</i>, Serm., I, 2, 63 ff., 80 ff.; <i>Martial</i>,
+ VI, 64, recalls certain caricatures of very recent times; for instance,
+ Bakunius' demand that both sexes should wear the same kind of dress.
+ (<i>R. Meyer</i>, Emancipationskampf des 4 Standes, I, 43.) Later,
+ concerning wifish men, see <i>Apuleius</i>, Metam., VIII; <i>Salvian</i>,
+ Gubern. Dei VII. We are led to a related subject in noticing that in
+ England of persons charged with serious crimes there were 10 women to 30
+ men; in Russia only 10 women to 81 men. (<i>v. Oettingen</i>, 758.) As
+ <i>Riehl</i> remarks, Famille 15, the undeniable <i>consensus gentium</i>,
+ that the costume of men should differ from that of women, is an equally
+ undeniable protest against this species of emancipation. I would add that,
+ as among ourselves in the earliest years of childhood, so also among lowly
+ civilized peoples, the difference in costumes of the sexes is least
+ apparent. (<i>Tacit.</i>, Germ., 17; Plan. Carpin., Voyage en Tartarie;
+ Add. éd., Bergeron, art. 2.) Even the physical difference is smaller there
+ (<i>Waitz</i>, Anthropologie der Naturvölker, I, 76), especially in the
+ size of the pelvis. (<i>Peschel</i>, Völkerkunde, 81, 86.)</p>
+
+ <p class="footnote"> <a name="footnote_250-9" id="footnote_250-9"></a>
+ <a href="#fnanchor_250-9">[250-9]</a>
+ Even <i>Plato</i> complains of the unnatural relations of the sexes to one
+ another, and would instead have the unions of couples of short duration
+ introduced, and complete community of children under the direction of the
+ state. (De Rep., V.) The Stoic Chrysippos approves the procreation of
+ children by parent and child, brother and sister. (<i>Diog. Laert.</i>,
+ VII. 188.) In the time of Epictetus (Fr. 53, ed. Duebner), the Roman women
+ liked to read Plato's republic, because in his community of wives they
+ found an excuse for their own course. The Anabaptists appealed to Christ's
+ saying that he who would not lose what he loved could not be his disciple.
+ Thus the women should sacrifice their honor and suffer shame for Christ's
+ sake. Publicans and prostitutes were fitter for heaven than honorable
+ wives, etc. (<i>Hagen</i>, Deutschlands Verhältnisse im
+ Reformationszeitalter, III, 221.)</p>
+
+ <p class="footnote">In our days, the theory inimical to the family is
+ based rather on misconceived ideas of freedom and science. The Christian
+ mortification of the flesh is, it is said, one-sidedness; and that the
+ flesh no less than the spirit is of God. Hence it is that Saint Simonism
+ would reconcile the two, and "emancipate" the flesh. (<i>Enfantin</i>,
+ Economie politique, 2d ed., 1832.) <i>Fourier</i>, in his Harmonie, allows
+ each woman to have one <i>époux</i> and two children by him; one
+ <i>géniteur</i> and one child by him; one <i>favori</i> and as many
+ <i>amants</i> with no legal rights as she wishes. His "harmonic" world he
+ would protect against over-population by four organic measures: the
+ <i>régime gastrosophique</i>, the object of which is by first-class food
+ to oppose fecundity; <i>la vigeur des femmes</i>, because sickly women
+ have most children; <i>l'exercise intégral</i>, since by the exercise of
+ all the organs of the body the organs of generation are latest developed;
+ lastly the <i>mœurs phanérogames</i>, the minuter description of which
+ <i>Fourier's</i> disciples omitted in the later editions. (<i>N.
+ Monde</i>, 377, ff.) <i>Fourier</i> was of opinion that only one-eighth of
+ the mothers should be occupied with the bringing up of the children, and
+ that a child's own parents were least adapted to bringing it up, as is
+ proved by the natural aversion of the child to mind the advice or obey the
+ injunctions of its own parents. (186 ff.) If all were left free to choose
+ their employment, two-thirds of all men would devote themselves to the
+ sciences, and one-third of all women; the fine arts would be cultivated by
+ one-third of the men and two-thirds of the women. In agriculture,
+ two-thirds of the men and one-third of the women would take to large
+ farming, and to small farming one-third of the men and two-thirds of the
+ women.</p>
+
+ <p class="footnote">The Communistic Journal, L'Humanitaire, is in favor of
+ a community of wives proper, while <i>Cabet</i> leaves the question an
+ open one. Compare, besides, <i>Godwin</i> on Political Justice, 1793,
+ VIII, ch. 8. In beautiful contrast to this are <i>J. G. Fichte's</i>
+ (compare, <i>supra</i>, § 2) views on marriage and the family in the
+ appendix to his Naturrecht, although he, too, would largely facilitate
+ divorce.</p>
+
+ <p class="footnote"> <a name="footnote_250-10" id="footnote_250-10"></a>
+ <a href="#fnanchor_250-10">[250-10]</a>
+ <i>J. Bentham</i>, Traité de Législation, II, 237, seq., says that it is
+ scarcely decent for men to engage in the toy trade, the millinery
+ business, in the making of ladies' dresses, shoes, etc. Compare <i>M.
+ Wolstoncraft</i>, Rettung der Rechte des Weibes, translated by Salzmann,
+ 1793; <i>v. Hippel</i>, über die bürgerliche Verbesserung der Weiber,
+ 1792. Rich in remarks on the woman question are <i>K. Marlo</i>, System
+ der Weltökonomie,<a name= "fnanchor_TN99" id= "fnanchor_TN99"></a><a href=
+ "#footnote_TN99" class= "fnanchor">[TN 99]</a> and <i>Schäffle</i>,
+ Kapitalismus und Socialismus, 444 ff., who, for the most part, supports
+ him. Compare <i>Josephine Butler</i>, Woman's Work and Woman's Culture: a
+ Series of Essays, 1792; <i>Leroy-Beaulieu</i>, Le Travail des Femmes au.
+ 19, siècle, 1873. Between 1867 and 1871, the number of men dependent on
+ their own action in Berlin, increased 22.9 per cent.; of women dependent
+ on their own labor, 36.6 per cent. (<i>Schwabe</i>, Volkszählung, 1871,
+ 84.)</p>
+
+ <p class="footnote"> <a name="footnote_250-11" id="footnote_250-11"></a>
+ <a href="#fnanchor_250-11">[250-11]</a>
+ <i>J. S. Mill</i>, on the other hand, rejoices over the great economic
+ independence of women, and expects from it especially a decrease in the
+ number of thoughtless marriages. (Principles, IV, ch. 7, 3. Compare by the
+ same author, The Subjection of Women, 1869.) I need only mention the
+ dramatic art and the factory proletariat, where the independence in
+ question obtains and indeed with very different results! It is very
+ characteristic of the time, that <i>Homer</i>(Il., XII, 433) considered
+ the spinning for wages as despicable, while <i>Socrates</i>, in the
+ mournful period following the Peloponnesian war, earnestly counsels that
+ free women without fortune should employ themselves with home industries.
+ (<i>Xenoph.</i>, Memor., II, 7.) It is in keeping with this that during
+ the time of scarcity after the Peloponnesian war even female citizens
+ hired themselves out as nurses. (<i>Demosth.</i>, adv. Eubul., 1309,
+ 1313.) The frequency of such engagements has, in many respects, causes
+ related to these which produce a frequency of illegitimate births.</p>
+
+<p class="p2 center"><a name="S251"></a>SECTION CCLI.<span
+class='pagenum'>[Pg 332]</span></p>
+
+<p class="center smaller">POLYANDRY.&mdash;EXPOSURE OF CHILDREN.</p>
+
+<p>In some of the countries of farther Asia, the immoral tendencies counter
+to over-population which with us take the direction of illegitimate births
+and acts of adultery, assume the guise of formal institutions established
+by law. I need only cite the polyandry<a name= "fnanchor_TN100" id=
+"fnanchor_TN100"></a><a href= "#footnote_TN100" class= "fnanchor">[TN
+100]</a> of East India, Thibet and other mountainous regions of Asia, which
+is indeed modified somewhat by the fact that, as a rule, only several
+brothers have one wife in common.<a name= "fnanchor_251-1"
+id="fnanchor_251-1"></a><a href="#footnote_251-1"
+class="fnanchor">[251-1]</a></p>
+
+<p>That unnatural institution is, in many localities, based on this, that a
+great many of the newly born female children are killed or at least sold in
+foreign parts after they have grown.<a name="fnanchor_251-2" id=
+"fnanchor_251-2"></a><a href="#footnote_251-2" class=
+"fnanchor">[251-2]</a> <span class='pagenum'>[Pg 333]</span> In addition to
+this, we have the very great encouragement given to celibacy in the
+Himalayas, so that only monks can attain to a higher education and to the
+higher honors.<a name="fnanchor_251-3" id="fnanchor_251-3"></a><a
+href="#footnote_251-3" class="fnanchor">[251-3]</a> In many parts of the
+East Indies, we find a legally recognized community of wives, which is but
+slightly modified<a name="fnanchor_251-4" id="fnanchor_251-4"></a><a
+href="#footnote_251-4" class="fnanchor">[251-4]</a> by the difference of
+caste; and almost everywhere, that looseness of general morality which
+usually characterizes declining nations.<a name="fnanchor_251-5" id=
+"fnanchor_251-5"></a><a href="#footnote_251-5" class=
+"fnanchor">[251-5]</a></p>
+
+<p>China is, as a rule, considered the classic land of child-exposure. And
+a writer of the country, who is considered one of the principal authorities
+against the exposure of children, actually claims that it is reprehensible
+only when one has property enough to support them. The murder of daughters
+he especially reprobates as "a struggle against the harmony of nature; the
+more a father performs this act, the more daughters are born to him; and no
+one has ever heard that the birth of sons was promoted in this way."<a
+name="fnanchor_251-6" id="fnanchor_251-6"></a><a href= "#footnote_251-6"
+class="fnanchor">[251-6]</a> Moreover, the exposure of <span class=
+'pagenum'>[Pg 334]</span> children in the later periods of antiquity played
+an important part. In Athens, the right of a father to expose his child was
+recognized by law. Even a Socrates accounts it one of the occasional duties
+of midwives to expose children.<a name= "fnanchor_251-7" id=
+"fnanchor_251-7"></a><a href= "#footnote_251-7" class=
+"fnanchor">[251-7]</a> Considered from a moral point of view, Aristotle has
+nothing to say against abortion.<a name="fnanchor_251-8"
+id="fnanchor_251-8"></a><a href="#footnote_251-8" class=
+"fnanchor">[251-8]</a> In Rome, a very ancient law, which was still in
+existence in 475 before Christ, made it the duty of every citizen to have
+and to bring up children.<a name= "fnanchor_251-9" id=
+"fnanchor_251-9"></a><a href= "#footnote_251-9" class=
+"fnanchor">[251-9]</a> It was very different in the time of the emperors,<a
+name="fnanchor_251-10" id="fnanchor_251-10"></a><a href= "#footnote_251-10"
+class= "fnanchor">[251-10]</a> and until Christianity, made the religion of
+the state, caused a legal prohibition against the exposure of children to
+be passed.<a name="fnanchor_251-11" id= "fnanchor_251-11"></a><a href=
+"#footnote_251-11" class= "fnanchor">[251-11]</a> <a name=
+"fnanchor_251-12" id= "fnanchor_251-12"></a><a href="#footnote_251-12"
+class= "fnanchor">[251-12]</a></p>
+
+ <p class="footnote"> <a name="footnote_251-1" id="footnote_251-1"></a>
+ <a href="#fnanchor_251-1">[251-1]</a>
+ <i>Turner</i>, Embassy to Thibet, II, 349, tells of five brothers who
+ lived satisfied thus under one roof. (<i>Jacquemont</i>, Voyage en Inde,
+ 402.) In Ladakh, all the children are ascribed to the eldest brother, to
+ whom also the property belongs; all the younger brothers are his servants
+ and may be expelled the house by him. (<i>Neumann</i>, Ausland, 1866, No.
+ 16 seq.) In Bissahir, on the other hand, the eldest child belongs to the
+ eldest brother, the second to the second, etc. Here the wife is bought by
+ all the brothers together and treated precisely as a slave.
+ (<i>Ritter</i>, Erdkunde, III, 752.) In Bhutan, the men move into the
+ house of the woman, who is frequently old, and who before marriage, and up
+ to her 25th or 30th year, has generally lived very lawlessly.
+ (<i>Ritter</i>, IV, 195.) Among the Garos, the wife may leave the man at
+ pleasure and not lose her property or her children, while her husband by
+ her rejection of him loses both. (<i>Ritter</i>, V, 403.) Even in
+ Mahabarata, polyandry occurs among the Northern Indians. Similarly, among
+ the Indo-Germanic tribes in Middle Asia (<i>Ritter</i>, VII, 608);
+ according to Chinese sources in ancient Tokharestan (<i>Ritter</i>, VII,
+ 699), and among the Sabæans (<i>Strabo</i>, XVI, 768). Even in ancient
+ Sparta. (<i>Polyb.</i>, XII, 6.)</p>
+
+ <p class="footnote"> <a name="footnote_251-2" id="footnote_251-2"></a>
+ <a href="#fnanchor_251-2">[251-2]</a>
+ In lower Nerbudda, the poisoning of new born female children was very
+ common about the beginning of this century. In Kutch, people prefer to
+ marry persons from foreign countries, and murder their own daughters.
+ (<i>Ritter</i>, VI, 623, 1054.) Similarly, even in the Indian Arcadia, the
+ land of the Nilgherrys (V, 1035 seq.). In Cashmir, all the beautiful girls
+ are sold in the Punjab and in India from their eighth year upwards. (VII,
+ 78.) Similarly in the Caucasus and in the mountainous region of
+ Badakschan. (VII, 798 ff.) <i>v. Haxthausen</i>, Transkaukasia,<a name=
+ "fnanchor_TN101" id= "fnanchor_TN101"></a><a href= "#footnote_TN101"
+ class= "fnanchor">[TN 101]</a> 1856, I, ch. 1, tells how the Russians
+ captured a vessel carrying Circassian slaves into Turkey. They left them
+ their choice, to go back home, marry in Russia, or to continue their
+ journey to Constantinople. They all unhesitatingly chose the last! There
+ is an echo of something analogous even in the Semiramis saga.</p>
+
+ <p class="footnote"> <a name="footnote_251-3" id="footnote_251-3"></a>
+ <a href="#fnanchor_251-3">[251-3]</a>
+ In many parts of Thibet and Rhutan the fourth son, and in some places the
+ half of the young men, become lamas. (<i>Ritter</i>, Erdkunde, IV, 149,
+ 206.)</p>
+
+ <p class="footnote"> <a name="footnote_251-4" id="footnote_251-4"></a>
+ <a href="#fnanchor_251-4">[251-4]</a>
+ Among the Garos and Nairs, as well as among the Cossyahs, in Northwestern
+ Farther India, the children have no father, but consider their brothers on
+ the mother's side their nearest male relatives. Inheritance also takes
+ this direction. (<i>J. Mill</i>, History of British India, I, 395 seq.
+ <i>Buchanan</i>, Journey through Mysore, II, 411 seq. <i>Ritter</i>, V,
+ 390 seq., 753.) Similarly, among the Lycians: <i>Herodot.</i>, I, 173.
+ Whether the peculiar custom of many old German people, of which
+ <i>Tacitus</i>, Germ., 20, makes mention, does not point to an original
+ community of wives, <i>quære</i>.</p>
+
+ <p class="footnote"> <a name="footnote_251-5" id="footnote_251-5"></a>
+ <a href="#fnanchor_251-5">[251-5]</a>
+ Even the most debauched European is a pattern of modesty compared with the
+ Indians themselves. (Edinb. Rev., XX, 484.) On the frightful development
+ of unnatural as well as natural crimes against chastity among the Chinese,
+ see <i>G. Schlegel</i>, in the memoirs of the Genoostchap van Kunsten en
+ Wetenschappen in Batavia, Band. XXXII, and Ausland, Januar., 1868.</p>
+
+ <p class="footnote"> <a name="footnote_251-6" id="footnote_251-6"></a>
+ <a href="#fnanchor_251-6">[251-6]</a>
+ According to <i>J. Bowring's</i> official report: Athenæum, 17 Nov., 1855.
+ That the exposure of children is allowed by law in China, and that many
+ poor couples marry with the intention of exposing them, is unquestionable.
+ But the reports concerning the extent of the evil differ materially. The
+ Jesuits estimated that in Pekin alone from 2,000 to 3,000 children were
+ exposed in the streets. To this must be added the many thrown into the
+ water or smothered in a bath-tub immediately after birth. Compare Lettres
+ édif., XVI, 394 ff.; <i>Barrow</i>, 166 ff. The street-foundlings were
+ picked up by the police and placed in wagons, living and dead together,
+ and cast into one pit in a part of the city. Other accounts are much more
+ favorable: thus that of <i>Ellis</i>, Voyage, ch. 7, who was there in
+ 1816, and of <i>Timkowski</i>, Reise, II, 359. Compare the quotations in
+ <i>Klemm</i>, Kulturgeschichte, VI, 212.</p>
+
+ <p class="footnote"> <a name="footnote_251-7" id="footnote_251-7"></a>
+ <a href="#fnanchor_251-7">[251-7]</a>
+ <i>Petit</i>, Legg. Att., 144. Compare <i>Becker</i>, Charicles, I, 21
+ ff.; <i>Plato</i>, Theæt., 150 ff. In Plato's state, a system of exposure
+ on a large scale is one of the most essential foundations of the whole.
+ (De Re., V, 461.)</p>
+
+ <p class="footnote"> <a name="footnote_251-8" id="footnote_251-8"></a>
+ <a href="#fnanchor_251-8">[251-8]</a>
+ Aristotle advised that males should not marry before their 37th year, and
+ that at least after their 55th year they should bring no more children
+ into the world. No family was allowed to have more than a definite number
+ of children. (Polit., VII, 14.) There are even yet pictures of Venus
+ trampling an embryo under foot. (<i>R. O. Müller</i>, Denkmäler der alten
+ Kunst, II, No. 265.) Compare, <i>per contra</i>, <i>Stobaeus</i>, Serm.,
+ LXXIV, 91; LXXI, 15.</p>
+
+ <p class="footnote"> <a name="footnote_251-9" id="footnote_251-9"></a>
+ <a href="#fnanchor_251-9">[251-9]</a>
+ <i>Dionys. Hal.</i>, Ant. Rom., IX, 22.</p>
+
+ <p class="footnote"> <a name="footnote_251-10" id="footnote_251-10"></a>
+ <a href="#fnanchor_251-10">[251-10]</a>
+ <i>Plutarch</i>, De Amore Prol., 2, Minut. Felix Octav., 30. That it
+ seemed entirely right, when persons had "enough" children, to put the
+ others to death, is proved by the catastrophe in <i>Longus'</i> idyllic
+ romance, IV, 24, 35. Even men like <i>Seneca</i> (Contr., IX, 26; X, 33)
+ and <i>Tacitus</i> (Ann., III, 25 ff.) were actually in favor of the right
+ of exposing children. On the frequency of artificial abortion, see
+ <i>Juvenal</i>, VI, 594. Semi-castration of young slaves for libidinous
+ women who did not want to bear children. (<i>Juvenal</i>, VI, 371 ff.;
+ <i>Martial</i>, I, V67.)</p>
+
+ <p class="footnote"> <a name="footnote_251-11" id="footnote_251-11"></a>
+ <a href="#fnanchor_251-11">[251-11]</a>
+ Under Constantine the Great, 315 after Christ. <i>Theod.</i>, Cod., XI,
+ 27, 1</p>
+
+ <p class="footnote"> <a name="footnote_251-12" id="footnote_251-12"></a>
+ <a href="#fnanchor_251-12">[251-12]</a>
+ It is an unfortunate fact that many modern nations approximate more
+ closely to this abomination of the ancients than is generally supposed.
+ The infrequency of illegitimate children in Romanic southern nations is
+ offset by the enormous number of exposures almost after the manner of the
+ Chinese. See the tables in <i>v. Oettingen</i>, Anhang, 95. In Milan,
+ between 1780 and 1789, there were, in the aggregate, 9,954 children
+ abandoned; between 1840 and 1849, 39,436. (<i>v. Oettingen</i>, 587.) On
+ abortion in North America, and the numberless bold advertisements of
+ doctors there that they are ready to remove all impediments to
+ menstruation "from whatever cause," see <i>v. Oettingen</i>, 523, and
+ Allg. Zeitung, 1867, No. 309. It would be a very mournful sign of the
+ times if the work: Principles of Social Science, or physical, sexual and
+ natural Religion; an Exposition of the real Cause and Cure of the three
+ great Evils of Society, Pauperism, Prostitution and Celibacy, by a Doctor
+ of Medicine (Berlin, 1871), were really a translation of an alleged
+ English original. It is throughout atheistic, materialistic and immoral,
+ concerned only with one fundamental idea: to instruct women how to prevent
+ conception!</p>
+
+<p class="p2 center"><a name="S252"></a>SECTION CCLII.<span class='pagenum'>[Pg 335]</span></p>
+
+<p class="center smaller">POSITIVE DECREASE OF POPULATION.</p>
+
+<p>The way of vice is steep. Where the aversion to the sacrifices and to
+the limitations of liberty imposed by marriage, has permeated the great
+body of the people; where, indeed, the immoral tendencies counter to
+population described in § 249 ff. have been largely developed, they very
+readily cease to be mere checks, and population may positively decline.
+While in the case of fresh and vigorous nations, the mere loss of men
+caused by wars, pestilence, etc., is very easily made up;<a name=
+"fnanchor_252-1" id="fnanchor_252-1"></a><a href="#footnote_252-1"
+class="fnanchor">[252-1]</a> <span class='pagenum'>[Pg 336]</span> that
+reproductive power may here be too much enfeebled to fill up the gap again.
+It has happened more than once that the decline of a period has been
+frightfully promoted by great plagues, which have swept away in whole
+masses the remnants of a former and better generation.<a name=
+"fnanchor_252-2" id="fnanchor_252-2"></a><a href="#footnote_252-2" class=
+"fnanchor">[252-2]</a> The return of the relatively small population of its
+childhood to a nation in its senility cannot be ascribed exclusively to a
+decrease in its means of subsistence and to a less advantageous
+distribution of them.<a name="fnanchor_252-3" id="fnanchor_252-3"></a><a
+href="#footnote_252-3" class="fnanchor">[252-3]</a><a name="fnanchor_252-4"
+id="fnanchor_252-4"></a> <a href="#footnote_252-4" class=
+"fnanchor">[252-4]</a> The depopulation, however, of Greece and Rome in
+their decline might be hard to understand were it not for the slavery of
+the lower class.<a name="fnanchor_252-5" id="fnanchor_252-5"></a><a href=
+"#footnote_252-5" class="fnanchor">[252-5]</a></p>
+
+ <p class="footnote"> <a name="footnote_252-1" id="footnote_252-1"></a>
+ <a href="#fnanchor_252-1">[252-1]</a>
+ It is said that the plague which, in 1709 and 1710, decimated Prussia and
+ Lithuanian,<a name= "fnanchor_TN102" id= "fnanchor_TN102"></a><a href=
+ "#footnote_TN102" class= "fnanchor">[TN 102]</a> carried away one-third of
+ the inhabitants, and even one-half of those at Dantzig. While previously
+ the number of marriages annually was, on an average, 6,082, it rose in
+ 1711 to 12,028. In 1712 it was 6,267, and sank some years afterwards on
+ account of the decrease in population, to 5,000. (<i>Süssmilch</i>, Göttl.
+ Ordnung, I, Tab. 21.) Similar effects of the plague at Marseilles, 1720.
+ (<i>Messance</i>, Recherches sur la Population, 766.) In Russia, too, it
+ was observed after the devastation produced by the black death in 1347 and
+ the succeeding years, that the population again increased at an
+ extraordinarily rapid rate; and that an unusual number of twins and
+ triplets were born (?). (<i>Karamsin</i>, Russ. Gesch., IV, 230.) Compare
+ <i>Dalin</i> Schwed. Gesch., 11,384; <i>Montfaucon</i>, Monuments de la
+ Monarchie Française, I, 282.</p>
+
+ <p class="footnote"> <a name="footnote_252-2" id="footnote_252-2"></a>
+ <a href="#fnanchor_252-2">[252-2]</a>
+ I would mention the Athenian pestilence during the last years or Pericles;
+ the Roman in the <i>orbis terrarum</i>, between 250 and 265 B.C., which is
+ said to have destroyed one-half of the population of Alexandria.
+ (<i>Gibbon</i>, Hist. of the Roman Empire, ch. 10.) It also made frightful
+ ravages, intellectually, on the nationality of the Romans.
+ (<i>Niebuhr.</i>) Thus, in England, the black death contributed very
+ largely to cause the disappearance of the medieval spirit.
+ (<i>Rogers.</i>) Of great political importance was the pestilence of
+ Bagdad, which, in 1831, carried off 2/3 of the inhabitants. All national
+ bonds seemed dissolved, robbers ruled the country; the army of the
+ powerful Doud Pascha was carried off entirely, and his whole political
+ system, constructed after the model of that of Mehemet-Ali, fell into
+ ruin. Compare <i>Anth. Groves</i>, Missionary Journal of a Residence at
+ Bagdad, 1832.</p>
+
+ <p class="footnote"> <a name="footnote_252-3" id="footnote_252-3"></a>
+ <a href="#fnanchor_252-3">[252-3]</a>
+ Among the Maoris, the number of sterile women is 9 times as great as the
+ average in Europe. Compare Reise der Novara, III, 129.</p>
+
+ <p class="footnote"> <a name="footnote_252-4" id="footnote_252-4"></a>
+ <a href="#fnanchor_252-4">[252-4]</a>
+ The decreasing number of English Quakers, among whom, in 1680-89, there
+ occurred 2,598 marriages, and in 1840-49 only 659, finds expression in the
+ unfrequency of marriage, a comparatively small number of women and a small
+ number of children, all in conjunction with a small mortality. (Statist.
+ Journ., 1859, 208 ff.) There is no reason to have recourse here to vice as
+ a cause, and scarcely to physiological reasons for an explanation, because
+ these phenomena are accounted for in great part by the fact that adult
+ males so frequently leave the sect.</p>
+
+ <p class="footnote"> <a name="footnote_252-5" id="footnote_252-5"></a>
+ <a href="#fnanchor_252-5">[252-5]</a>
+ In this respect, however, there is a great difference between bondage and
+ slavery. As early a writer as <i>Polybius</i> speaks of the depopulation
+ of Greece. (<i>Polyb.</i>, II, 55; XXXVII, 4.) He looks for the cause in
+ this, that in every family, for luxury's sake, either no children whatever
+ were wanted, or at most from one to two, that the latter might be left
+ rich. (Exc. Vat., 448.) Very remarkable, <i>Seneca</i>, Cons. ad. Marc,
+ 19. Further, <i>Cicero</i>, ad. Div., II, 5. <i>Strabo</i>, VII, 501;
+ VIII, 595; IX, 617, 629. <i>Pausan.</i>, VII, 18; VIII, 7; X, 4; <i>Dio
+ Chr.</i>, VII, 34, 121; XXXIII, 25. <i>Plutarch</i> claimed that Hellas
+ could, in his time, number scarcely 3,000 hoplites, while in the time of
+ Themistocles, Megalis alone had put as many in the field. (De Defectu
+ Orac., S.) Antium and Tarentum similarly declined under Nero.
+ (<i>Tacit</i>., Ann., XIV, 27.) The depopulation even of the capital,
+ which began under Tiberius, is apparent from <i>Tacit.</i>, Ann., IV, 4,
+ 27. National beauty also declined with the nation's populousness.
+ <i>Æschines</i> saw a great many beautiful youths in Athens (adv.
+ Timarch., 31); <i>Cotta</i>, only very few (<i>Cicero</i>, de Nat. Deorum,
+ I, 28); <i>Dio Chrysostomus</i>, almost none at all (Orat., XXI). On the
+ necessary lowering of the military standard of measure, see <i>Theod.</i>,
+ Cod., VII, 13, 3, <i>Verget</i>, de Re milit., I, 5. The depopulation of
+ the later <i>orbis terrarum</i> is confirmed by the easiness of the new
+ division of land with the German conquerors. Compare <i>Gaupp</i>, Die
+ Germanischen Niederlassungen und Landtheilungen (1845), passim.</p>
+
+<p><span class='pagenum'>[Pg 337]</span></p>
+
+<h3 class="p4">CHAPTER III.</h3>
+
+<h3>POPULATION-POLICY.</h3>
+
+<p class="p2 center"><a name="S253"></a>SECTION CCLIII.</p>
+
+<p class="center smaller">DENSE POPULATION.&mdash;OVER-POPULATION.</p>
+
+<p>The nation's economy attains its full development wherever the greatest
+number of human beings simultaneously find the fullest satisfaction of
+their wants.</p>
+
+<p>A dense population is not only a symptom of the existence of great
+productive forces carried to a high point of utilization;<a name=
+"fnanchor_253-1" id= "fnanchor_253-1"></a><a href= "#footnote_253-1"
+class="fnanchor">[253-1]</a> <span class='pagenum'>[Pg 338]</span> but is
+itself a productive force,<a name= "fnanchor_253-2" id=
+"fnanchor_253-2"></a><a href= "#footnote_253-2" class=
+"fnanchor">[253-2]</a> and of the utmost importance as a spur and as an
+auxiliary to the utilization of all other forces. The new is always
+attractive, by reason of its newness; but at the same time, we hold to the
+old too precisely because of its age: and the force of inertia would always
+turn the scales in favor of the latter. This inertia, both physical and
+mental is so general, that perhaps the majority of mankind would continue
+forever satisfied with their traditional field of occupation and with their
+traditional circle of food, were it not that an impulse as powerful and
+universal as the sexual and that of the love of children compelled them to
+extend the limits of both. That man might subdue the whole earth it was
+necessary that the Creator should make the tendency of man to multiply his
+kind more powerful than the original production-tendency of his earliest<a
+name= "fnanchor_TN103" id= "fnanchor_TN103"></a><a href= "#footnote_TN103"
+class= "fnanchor">[TN 103]</a> home. The unknown far-away deters as much as
+it attracts.<a name= "fnanchor_253-3" id= "fnanchor_253-3"></a><a href=
+"#footnote_253-3" class= "fnanchor">[253-3]</a> It is easy to see how the
+division and <span class= 'pagenum'>[Pg 339]</span> combination of labor
+become uniformly easier as population increases in density. Think only of
+large cities as compared with the country.<a name= "fnanchor_253-4" id=
+"fnanchor_253-4"></a><a href= "#footnote_253-4" class=
+"fnanchor">[253-4]</a> "Under-populated"<a name="fnanchor_253-5"
+id="fnanchor_253-5"></a><a href="#footnote_253-5"
+class="fnanchor">[253-5]</a> countries, which <span class='pagenum'>[Pg
+340]</span> might easily support a large number of human beings, and which,
+notwithstanding have for a long period of time had only few inhabitants,
+are on this account abodes of poverty, regions where education and progress
+are unknown. While, therefore, it cannot be questioned that a nation under
+otherwise equal circumstances is more powerful and flourishing in
+proportion as its population embraces a large number of vigorous,
+well-to-do, educated and happy human beings, the last mentioned attributes
+should not be left out of consideration.</p>
+
+<p>The possibility of over-population is contested by a great many
+theorizers (§ 243); and, indeed, the complaints on this score are in most
+cases only a baseless pretext of the inertia which feels the pressure of
+the population without being helped and spurred thereby to an increase of
+the means of subsistence. This inertia itself, especially when it governs a
+whole nation, is a fact which cannot be ignored. Over-population, as I use
+the term, exists whenever the disproportion between the population and the
+means of subsistence operates in such away that the average portion of the
+latter which falls to the share of each is oppressively small, whether the
+effect produced thereby manifests<a name= "fnanchor_TN104" id=
+"fnanchor_TN104"></a><a href= "#footnote_TN104" class= "fnanchor">[TN
+104]</a> itself in a surprisingly large mortality, or in the limitation of
+marriages and of the procreation of children carried to the point of
+hardship. Over-population of this kind is, as a rule, curable by extending
+the limits of the field of food, either as a result of the advance of
+civilization at home, or by emigration.</p>
+
+<p><span class='pagenum'>[Pg 341]</span>That the whole earth should be
+incurably over-peopled is an exceedingly remote contingency.<a
+name="fnanchor_253-6" id="fnanchor_253-6"></a><a href= "#footnote_253-6"
+class="fnanchor">[253-6]</a> But where, within a smaller circle, by reason
+of the great stupidity or weakness of mankind, or by the too great power of
+circumstances, over-population cannot act as a spur to new activity, it is
+indeed one of the most serious and most dangerous political diseases.<a
+name="fnanchor_253-7" id="fnanchor_253-7"></a><a href= "#footnote_253-7"
+class="fnanchor">[253-7]</a> The immoderate competition of workmen involves
+the majority of the nation in misery, not only materially but also morally;
+one of the most dangerous temptations, for the rich to a contempt for human
+kind, for the poor to envy, dishonesty and prostitution. In every
+suffocating crowd, the animal part of man is wont to obtain the victory
+over the intellectual. Precisely the simplest, most universal and most
+necessary relations are most radically and disastrously affected by the
+difficulty or impossibility of contracting marriage, and the sore
+solicitude for the future of one's children.<a name="fnanchor_253-8"
+id="fnanchor_253-8"></a><a href= "#footnote_253-8" class=
+"fnanchor">[253-8]</a></p>
+
+ <p class="footnote"> <a name="footnote_253-1" id="footnote_253-1"></a>
+ <a href="#fnanchor_253-1">[253-1]</a>
+ A map of Europe, which would show the density of population by the
+ intensity of shade, would be darkest in the vicinity of the lines between
+ Sicily and Scotland, between Paris and Saxony, and grow lighter in
+ proportion to the distance from their point of intersection. Italy is the
+ country with the earliest highly developed national economy of modern
+ times, and England that which possesses the most highly cultivated
+ national economy; as the Rhine is, from the standpoint of civilization,
+ the most important river in Europe. It is remarkable, in this connection,
+ how slowly population increased in all European countries during the 18th
+ century, and how rapidly after the beginning of the 19th, and especially
+ since 1825. According to <i>Dieterici</i> (Berliner Akademie,<a name=
+ "fnanchor_TN105" id= "fnanchor_TN105"></a><a href= "#footnote_TN105"
+ class= "fnanchor">[TN 105]</a> 16 Mai, 1850), the population increased
+ annually per geographical square mile:</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Population increase">
+
+<tr><td class="center"><i>In</i></td><td class="center"><i>1700-1800.</i>
+</td><td class="center"><i>1800-1825.</i></td><td class="center">
+<i>1824-1846.</i></td></tr>
+
+<tr><td></td><td class="center"><span class="smcap">by</span></td>
+<td class="center"><span class="smcap">by</span></td><td class="center">
+<span class="smcap">by</span></td></tr>
+
+<tr><td class="left">France,</td><td class="center"><span class="hidenum">1
+</span>4<span class="hidenum">1</span></td><td class="center">16</td><td class="center">
+<span class="hidenum">1</span>32</td></tr>
+
+<tr><td class="left">Naples,</td><td class="center">15</td>
+<td class="center">18</td><td class="center"><span class="hidenum">1
+</span>49<span class="hidenum">|</span></td></tr>
+
+<tr><td class="left">Piedmont,</td><td class="center">
+<span class="hidenum">1</span>6</td><td class="center">
+<span class="hidenum">1</span>8</td><td class="center">
+<span class="hidenum">1</span>50</td></tr>
+
+<tr><td class="left">Lombardy,</td><td class="center">19</td>
+<td class="center">40</td><td class="center"><span class="hidenum">1</span>
+80<span class="hidenum">|</span></td></tr>
+
+<tr><td class="left1">England and Wales,</td><td class="center">16</td>
+<td class="center">42</td><td class="center">136</td></tr>
+
+<tr><td class="left">Scotland,</td><td class="center">
+<span class="hidenum">1</span>3</td><td class="center">16</td>
+<td class="center"><span class="hidenum">1</span>34</td></tr>
+
+<tr><td class="left">Ireland,</td><td class="center">17</td>
+<td class="center">80</td><td class="center"><span class="hidenum">1
+</span>77<span class="hidenum">|</span></td></tr>
+
+<tr><td class="left">Holland,</td><td class="center">13</td>
+<td class="center">14</td><td class="center"><span class="hidenum">1</span>
+95<span class="hidenum">|</span></td></tr>
+
+<tr><td class="left">Belgium,</td><td class="center">15</td>
+<td class="center">44</td><td class="center">136</td></tr>
+
+<tr><td class="left">Prussia,</td><td class="center"><span
+class="hidenum">1</span>7</td><td class="center">17</td>
+<td class="center"><span class="hidenum">1</span>68</td></tr>
+
+<tr><td class="left">Hanover,</td><td class="center">
+<span class="hidenum">1</span>6</td><td class="center">12</td>
+<td class="center"><span class="hidenum">1</span>32</td></tr>
+
+<tr><td class="left">Württemberg,</td><td class="center">17</td>
+<td class="center">12</td><td class="center"><span
+class="hidenum">1</span>56</td></tr>
+
+<tr><td class="left">Bohemia,</td><td class="center">16</td>
+<td class="center">27</td><td class="center"><span class="hidenum">1
+</span>73<span class="hidenum">|</span></td></tr>
+
+</table></div>
+
+ <p class="footnote"> <a name="footnote_253-2" id="footnote_253-2"></a>
+ <a href="#fnanchor_253-2">[253-2]</a>
+ "The useful rearing of children the most productive of all outlay."
+ (<i>Roesler.</i>)</p>
+
+ <p class="footnote"> <a name="footnote_253-3" id="footnote_253-3"></a>
+ <a href="#fnanchor_253-3">[253-3]</a>
+ Compare <i>J. Harrington</i> (ob. 1677), Prerogative of a popular
+ Government, I, ch. II; <i>Sir J. Stewart</i>, Principles, I, ch. 18;
+ <i>Malthus</i>, Principle of Population, IV, ch. 1; <i>McCulloch</i> very
+ happily shows how seldom those who can live comfortably without it are
+ extraordinarily active. The Malthusian law prevents this ever becoming the
+ condition of the majority. Precisely during those years that man is most
+ capable of labor, there is a prospect of a great increase of outlay, in
+ case one does not remain single, which would inevitably degrade every one,
+ a few over-rich excepted, who had not taken care to provide for a
+ corresponding increase of income. Were it not for this, human progress
+ would become slower and slower, for the reason that the <i>dura
+ necessitas</i> would be felt less and less.</p>
+
+ <p class="footnote"> <a name="footnote_253-4" id="footnote_253-4"></a>
+ <a href="#fnanchor_253-4">[253-4]</a>
+ According to <i>Purves</i>, Principles of Population, 1818, 456, there
+ were, in England (London not included):</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="English population">
+
+<tr><td></td><td class="center"><i>In the seven<br />most densely<br />
+populated counties.</i></td>
+<td class="center"><i>In the seven<br />counties of<br />average<br />
+population.</i></td>
+<td class="center"><i>In the five<br />most sparsely<br />populated<br />
+counties.</i></td></tr>
+
+<tr><td class="left1">Inhabitants per geographical sq. mile,</td>
+<td class="center">4,904</td><td class="center">2,229</td>
+<td class="center">1,061</td></tr>
+
+<tr><td class="left1">One man with £60 income in every</td>
+<td class="center"><span class="hidenum">0</span>34 inhabitants</td>
+<td class="center"><span class="hidenum">0</span>37</td><td class="center">
+<span class="hidenum">4</span>77</td></tr>
+
+<tr><td class="left1">One man with £200 income in every</td>
+<td class="center">193 inhabitants</td><td class="center">199</td>
+<td class="center">472</td></tr>
+
+<tr><td class="left1">Aggregate of all incomes over £200 per square
+mile,</td><td class="center">£25,118</td><td class="center">£12,676</td>
+<td class="center">£2,441</td></tr>
+</table></div>
+
+ <p class="footnote">Compare <i>Rau</i>, Lehrbuch, II, § 13. Something
+ analogous has frequently been observed as to taxation capacity. Thus, for
+ instance, the Hessian provinces paid in direct taxation and taxation on
+ wines, liquors, etc.; and the density of the population was in the
+ ratio<span style="white-space:nowrap;">&mdash;</span></p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="Hessen density">
+
+<tr><td class="left">In Rhenish Hessen,</td><td class="right">100</td>
+<td class="right">100.</td></tr
+>
+<tr><td class="left">In Starkenburg,</td><td class="right">65</td>
+<td class="right">64.</td></tr>
+
+<tr><td class="left">In Upper Hessen,</td><td class="right">64</td>
+<td class="right">59.</td></tr>
+</table></div>
+
+ <p class="footnote">(<i>Rau</i>, Lehrbuch, III, § 280.) In many European
+ countries, the population has for a long period of time, and in a
+ comfortable way, increased most rapidly where it has been densest. Thus,
+ for instance, the kingdom of Saxony was, in 1837, the most densely
+ populated of all the monarchical states of Germany (6,076 inhabitants per
+ square mile), Hanover (2,416) and Mecklenburg-Schwerin (2,004) were among
+ the most sparsely peopled. And yet the annual increase of population
+ between 1837 and 1858 was greatest in Saxony (1.36 per cent.) while
+ Hanover (0.44) and Mecklenburg-Schwerin (0.59) stood very low in this
+ respect. In very thinly populated countries, nature permits even the
+ civilized man to deteriorate: thus the French in Canada, the Spaniard in
+ the valley of the La Plata.</p>
+
+ <p class="footnote"> <a name="footnote_253-5" id="footnote_253-5"></a>
+ <a href="#fnanchor_253-5">[253-5]</a>
+ This excellent expression seems to have been first used by
+ <i>Gerstner</i>, Grundlehren der Staatsverwaltung, 1864, II, 1, 176 ff. It
+ must indeed be distinguished from a rapidly growing, but for the time
+ being, a sparsely settled country. A nation with an equal population on a
+ larger surface is, frequently in the immediate present weaker than another
+ in which the population is more dense; but it has the advantage of a
+ greater possibility of growth in the future. Think of the electorates of
+ Saxe and of Brandenburg in the sixteenth century. Just as <i>Thaer</i>,
+ Landwirthschaftliche Gewerbelehre, § 149, advises that a mere annuitant
+ should, values being the same, rather purchase a smaller fertile estate; a
+ very able husbandman the reverse.</p>
+
+ <p class="footnote"> <a name="footnote_253-6" id="footnote_253-6"></a>
+ <a href="#fnanchor_253-6">[253-6]</a>
+ We need only call to mind such facts as for instance that the United
+ States wealth of coal is 22 times as great as that of Great Britain.
+ (<i>Rogers</i>, The Coal Formation and a Description of the Coal Fields of
+ North America and Great Britain, 1858.) In addition to this, only about 16
+ per cent. of the combustible material is really used in the way furnaces
+ are now generally filled, only 10 per cent. in foundry furnaces, and from
+ 14 to 15 per cent. in the transportation of passengers on railways. The
+ Falls of Niagara afford a water-power equal to 2/3 of all the steam
+ engines which existed, a short time since, in the whole world. (<i>E.
+ Hermann</i>, Principien der Wirthschaft, 1873, p. 49, 153, 243.) But that
+ single families, houses, branches of business, etc. may be over-peopled,
+ and the impoverishing disproportion between numbers and the means of
+ subsistence not be susceptible of immediate removal by the unaided power
+ of the crowded circle, cannot be questioned.</p>
+
+ <p class="footnote"> <a name="footnote_253-7" id="footnote_253-7"></a>
+ <a href="#fnanchor_253-7">[253-7]</a>
+ <i>Aristotle</i> had recognized the possibility of over-population.
+ (Polit., II, 4, 3, 7, 4; VII, 4, 5; VII, 14.) <i>Schmitthenner</i>,<a
+ name= "fnanchor_TN106" id= "fnanchor_TN106"></a><a href= "#footnote_TN106"
+ class= "fnanchor">[TN 106]</a> Staatswisensschaften, I, distinguishes
+ between relative and absolute over-population: the former is remediable by
+ intellectual and especially by political development, while the latter
+ borders on the extreme physical and possible limits of the means of
+ subsistence. <i>W. Thornton</i>, Over-population and its Remedy, 1849, 9,
+ considers a country in English circumstances over-populated when a man
+ between twenty and seventy years of age is not in a condition to support,
+ by means of his wages, 1¼ persons in need of assistance (children under
+ 10, women over 60, and men over 70 years of age).</p>
+
+ <p class="footnote"> <a name="footnote_253-8" id="footnote_253-8"></a>
+ <a href="#fnanchor_253-8">[253-8]</a>
+ Thus, for instance, in war, one million of peasants are infinitely more
+ powerful, especially in case of a protracted defensive war, than two
+ millions of proletarians. Alaric's saying: "thick-growing grass is most
+ easily mowed."</p>
+
+<p class="p2 center"><a name="S254"></a>SECTION CCLIV.<span
+class='pagenum'>[Pg 342]</span></p>
+
+<p class="center smaller">THE IDEAL OF POPULATION.</p>
+
+<p>Hence it was not an erroneous policy that most governments have sought
+to promote the increase of population in undeveloped nations. So far as the
+influence of the acts of government can reach, such a course must tend to
+the earlier maturity of a people's economy. Much more questionable are
+positive provisions by government intended to hinder the further increase
+of population in a country already supposed to be fully peopled; if for no
+other reason, because even the deepest, most varied and extensive knowledge
+can scarcely ever predict with certainty that no further extension of the
+field of food is possible under the spur of momentary over-population; and
+also because questions of population reach so far into the life and
+tenderest feelings of the individual that a government which has regard for
+the personal freedom of its subjects, instead of promoting or hindering
+marriage, emigration etc. by police regulations, cannot but limit itself to
+a statistical knowledge and legislative regulation of these relations.<a
+name="fnanchor_254-1" id="fnanchor_254-1"></a><a href="#footnote_254-1"
+class="fnanchor">[254-1]</a><a name="fnanchor_254-2" id="fnanchor_254-2">
+</a><a href="#footnote_254-2" class="fnanchor">[254-2]</a></p>
+
+<p><span class='pagenum'>[Pg 343]</span>Whether the population of a country
+increase in a well-to-do or proletarian manner; whether, therefore, the
+state should rejoice or lament over such increase, may generally be
+inferred <span class='pagenum'>[Pg 344]</span> with some certainty from the
+other conditions of the country's economy, especially from the height of
+the rate of wages and from the consumption of the nation (§ 230). Thus, for
+instance, <span class='pagenum'>[Pg 345]</span> the population of England,
+between 1815 and 1847, increased 47 per cent.; but during the same period
+the value of its exports increased 63 per cent.; the tonnage of its
+merchant marine, 55 per cent.; the amount yielded by the tax on legacies,
+and therefore moveable property, by 93 per cent.; the value of immoveable
+property by 78 per cent. Wherever in agriculture the ancient system of
+triennial rotation (<i>Dreifelder-system</i> = <i>three-field system</i>)
+has been exchanged for the so-called English system, not only is a greater
+number of men supported, but, as a rule, each is more abundantly provided
+for.<a name="fnanchor_254-3" id="fnanchor_254-3"></a><a href=
+"#footnote_254-3" class="fnanchor">[254-3]</a> The construction of new
+houses is an especially good symptom, because a habitation is a want which
+governs many others, and which, at the same time, may be much curtailed
+<span class='pagenum'>[Pg 346]</span> in case of need. Only, there should
+be no thoughtless building speculations, the existence or absence of which
+may readily be inferred from the ratio between the rent of houses and the
+rate of interest usual in the country. In England and Wales there was, in
+1801, one house to every 5.7 inhabitants; in 1821, to every 5.8; in 1841,
+to every 5.4; in 1861, to every 5.39; in 1871, to every 5.35.<a name=
+"fnanchor_254-4" id="fnanchor_254-4"></a><a href="#footnote_254-4" class=
+"fnanchor">[254-4]</a></p>
+
+<p>The taking of the census at regular intervals in accordance with the
+principles of modern science, and with the apparatus of modern art, is one
+of the chief means to enable us to form a correct judgment of the health of
+the national life and of the goodness of the state.<a name="fnanchor_254-5"
+id="fnanchor_254-5"></a><a href="#footnote_254-5" class="fnanchor">[254-5]</a>
+</p>
+
+ <p class="footnote"> <a name="footnote_254-1" id="footnote_254-1"></a>
+ <a href="#fnanchor_254-1">[254-1]</a>
+ Compare <i>R. Mohl</i>, Polizeiwissenschaft, I, § 15.</p>
+
+ <p class="footnote"> <a name="footnote_254-2" id="footnote_254-2"></a>
+ <a href="#fnanchor_254-2">[254-2]</a>
+ There may be observed a regular ebb and flow in the opinions of theorizers
+ on this subject. During the latter, great enthusiasm is manifested over
+ the increase of population, which is considered an unqualified benefit;
+ later, over-population gives rise to uneasiness. Not many had as much
+ insight as Henry IV.: <i>la force et la richesse des rois consistent dans
+ le nombre et dans l'opulence des sujets</i>. (Edict., in <i>Wolowski</i>
+ in the Mémoires de l'Acad. des Sciences morales et politiques, 1855.)
+ Thus, for instance, <i>Luther</i>, in his sermons on the married state,
+ advises all young men to marry at 20, and all young women at from 15 to 18
+ years of age. The person who fails to marry because he cannot support a
+ family has no real confidence in God. God will not allow those who obey
+ his command to want the necessaries of life. Werke by <i>Irmischer</i>,
+ XX, 77 ff. In England, great dread of depopulation under the first two
+ Tudors: 4 Henry VII., c. 19; 3 Henry VIII., c. 8. <i>J. Bodinus</i>, De
+ Rep., VI, is charmed with the Lex Julia et Papia Poppæa. Its repeal was
+ immediately followed by the greatest looseness of morals and by
+ depopulation.</p>
+
+ <p class="footnote">On the other hand, a great dread of over-population
+ prevailed among English political economists at the end of the sixteenth
+ and the beginning of the seventeenth century. They recommended their
+ colonial projects by saying that they desired to avert this danger. Thus,
+ for instance, <i>Raleigh</i>, History of the World, I, ch. 4;
+ <i>Bacon</i>, Sermones fid., 15, 33, and his essay, De Colonies in
+ Hiberniam deducendis. Compare <i>Roscher</i>, Zur Geschichte der
+ englischen Volkswirthschaftslehre, 24, 26, 31, 34, 42. Similarly, at the
+ end of the fifteenth century, in highly developed Italy, which had become
+ stationary. According to <i>F. Patricius</i> (De Inst. Republ., VI, 4;
+ VII, 12): <i>incolarum multitudo periculosa est in omni populo</i>. Since
+ <i>Colbert's</i> time, the opposite opinion has become the prevailing one.
+ The densest population had been observed in the wealthiest and relatively
+ the most powerful countries, and people thought they had here sufficient
+ data for a wide generalization. The thought of military conscription by
+ degrees obtained weight in this connection. Thus, <i>Saavedra Faxardo</i>,
+ Idea Principis christiano-politici (1649), Symb. 66; <i>De la Court</i>,
+ Aanwysing (1699), I, 9. <i>Sir W. Temple</i>, says that the fundamental
+ cause of all commerce and wealth lies in a dense population, which compels
+ men to the practice of industry and frugality. (Works, I, 162 ff., 171,
+ III, 2.) <i>Imperii potentia ex civium numero astimanda est.</i>
+ (<i>Spinoza</i>, Tract, politicus, VII, 18.)</p>
+
+ <p class="footnote">Thus <i>Petty</i> says that 1,000 acres which can
+ support 1,000 men are better than 10,000 which do the same thing. He would
+ give Scotland and Ireland up entirely, and have the inhabitants settle in
+ England. In this way all combination for common purposes would be
+ facilitated. (Several Essays, 107 seq., 147 ff.) Peter the Great is said
+ to have entertained a similar view: Œuvres de Frédéric le Grand, II, 23.
+ More moderate is <i>Child</i>, Discourse of Trade, 298, and still more so
+ in 368 ff.; <i>Locke</i>, Works, I, 73 ff.; II, 3, 6, 191. In Germany,
+ <i>v. Seckendorff</i> advises that great establishments for children
+ should be erected, in which orphans and even the children of poor parents
+ should be brought up at the expense of the state, simply with the object
+ of increasing the number of healthy men. (Teutscher Fürstenstaat, ed.
+ 1678, 203, Add. 179.) <i>Becher</i>, Polit. Discours, 21, would have
+ murderers punished because they detract from population, although he
+ elsewhere in his definition of a city, "a nourishing populous community,"
+ is no blind enthusiast over-population. According to <i>v. Horneck</i>;
+ Oesterreich über Alles, 1684, 29 ff., the third fundamental rule of public
+ economy is the greatest possible increase and employment of men. <i>Vera
+ regni potestas in hominem numero consistit; ubi enim sunt homines, ibi
+ substantiæ et vires.</i> (<i>Leibnitz</i>, ed., Dutens, IV, 2, 502.)
+ According to <i>Vauban</i>, Dîme royale, 150, Daire, no child can be born
+ of a subject by which the king is not a gainer. Compare 46,145. Numbers of
+ People the greatest riches. (<i>Law</i>, Trade and Money, 209.) Similarly,
+ Law's disciple <i>Mélon</i>, Essai politique sur le Commerce, ch. I, 3.
+ The number of people is both means and motive to industry
+ (<i>Berkeley</i>, Works, II, 187) and hence the public are interested in
+ nothing so much as in the production of competent citizens. (Querist, Nr.,
+ 206.) <i>Süssmilch</i>, Göttl. Ordnung, I, Kap. 10; Œuvres de Frédéric M.
+ IV, 4; VI, 82.</p>
+
+ <p class="footnote">About the middle of the 18th century, we find a whole
+ school of political thinkers who decide every question from the standpoint
+ of the influence of the solution on the increase of population.
+ (Excellently refuted by <i>Schlözer,</i> Anfangsgründe, II, 15 ff.) Thus
+ especially <i>Tucker</i>, Important Questions, IV, 11; V, 5; VII, 4; VIII,
+ 5. Four Tracts, 70. <i>Forbonnais</i>, Finances de France, I, 351, who
+ considered it one of the principal objects of a good industrial policy to
+ employ the greatest possible number of men. <i>Necker</i>, Sur le Commerce
+ et la Législation des Grains, 1776. <i>v. Sonnenfels</i>, Grundsätze der
+ Polizei, Handlung und Finanz (1765), in which the principle of population
+ is called the highest principle of all four sciences of the state (I, § 25
+ ff.). These writers understand the "balance of trade" in such a way, that
+ a nation always operates most advantageously which gives employment to the
+ largest number of men with its export articles, (<i>v. Sonnenfels</i>, II,
+ § 210 ff., 354 ff.) <i>v. Justi</i>, Staatswissenschaft, I, 160 ff., says
+ plainly that a country can never have too many men. According to
+ <i>Darjes</i>, Erste Gründe, 379, "even the increase of beggars brings
+ something into the treasury by means of the excise tax which they pay."
+ Compare, also, <i>J. J. Rousseau</i>, Contrat Social, III, 9;
+ <i>Galiani</i>, Della Moneta, II, 4; <i>Verri</i>, Opuscoli, 325;
+ <i>Filangieri</i>, Leggi Politiche<a name= "fnanchor_TN107" id=
+ "fnanchor_TN107"></a><a href= "#footnote_TN107" class= "fnanchor">[TN
+ 107]</a> ed Economiche, II, 2; <i>Paley</i>, Moral and Political
+ Philosophy, III, ch. 11. On similar grounds, <i>A. Young</i> laments that
+ the increase of proletarians is greatly hindered by the English poor laws.
+ (In later writings it is somewhat different: compare Travels in France, I,
+ ch. 12.) How deeply such ideas had penetrated public opinion is apparent
+ from the opening words of the Vicar of Wakefield, as well as from the
+ declaration of <i>Pitt</i> in parliament in 1796, that a man who had
+ enriched his country with a number of children had a claim upon its
+ assistance to educate them. Much more correctly, <i>Voltaire</i>, Dict.
+ Philosophique, art. Population, sect. 2.</p>
+
+ <p class="footnote">The reaction which attained its height in the
+ Malthusians proper, set in with the Physiocrates and <i>Steuart:
+ Quesnay</i>, Maximes générales, No. 26; <i>Mirabeau</i>, Phil. rurale, ch.
+ 8, and Ami des Hommes (1762), VIII, 84. Similarly, <i>J. J. Reinhard</i>,
+ who calls Baden over peopled "for its present system of agriculture."
+ (Vermischte Schriften, 1760, I, 1 ff.; II, Varr.) <i>Möser</i> Patr.
+ Phant., I, 33, 42; II, 1; IV, 15; V, 26. Also Minister <i>v. Stein</i>:
+ Leben von Pertz, V, 72; VI, 539, 887, 1184. Compare <i>supra</i>, § 242.
+ Of certain modern economists, it may be said that they deplore and condemn
+ the birth of every child for whose support there has not been established
+ a life long annuity in advance. A remarkable but unsuccessful attempt is
+ made by <i>Ch. Périn</i>, De la Richesse dans les Sociétés Chrêtiennes, at
+ the end of the first volume, to reconcile the opposing views. Périn
+ reproaches the Malthusians, and especially <i>Dunoyer</i> and <i>J. S.
+ Mill</i>, with the advocacy of <i>l'onanisme conjugal</i>, and thus
+ desiring to restore the old heathen situation. Only the Church holds the
+ proper mean between defect and excess, inasmuch as it permits complete
+ continency or the procreation of children regardless of circumstances to
+ its members; while, on the other hand, it, by celibacy and by the
+ inculcation of industry, frugality, etc., guards against over-population.
+ (How well the Roman Church has succeeded in this is best proved by the
+ Roman Compagna!)</p>
+
+ <p class="footnote">In Greece, too, in its first economic periods,
+ especially at the time that the first colonies were sent out, great fears
+ were expressed of over-population. <i>Hesiod</i> weighs the advantages and
+ disadvantages of the married state against one another with great
+ thoroughness. (Theog., 600 ff.) In the Cypria, even the Trojan war was
+ explained by a divine decree, emitted with the intention of removing
+ over-population.</p>
+
+ <p class="footnote"> <a name="footnote_254-3" id="footnote_254-3"></a>
+ <a href="#fnanchor_254-3">[254-3]</a>
+ <i>A. Young</i>, Political Arithmetik, 160 ff. In the United States, in
+ ten years, the increase of wealth to that of population, was as 61:33.
+ (<i>Tucker</i>, Progress of the United States, 202 ff.) As a good measure
+ for the well-being of the masses, <i>J. J. Neumann</i> recommends the
+ relative number attending higher schools, also that of shoemakers,
+ tailors, etc., because the magnitude of the consumption of wool, leather,
+ etc., can scarcely be directly ascertained. (<i>Hildebrand's</i> Jahrbb.,
+ 1872, I, 283, 294.)</p>
+
+ <p class="footnote"> <a name="footnote_254-4" id="footnote_254-4"></a>
+ <a href="#fnanchor_254-4">[254-4]</a>
+ Statist. Journ., 1861, 251. In Liverpool, between 1831 and 1841, the
+ population increased 40 per cent., and the number of houses 24 per cent.,
+ on account of the large immigration of Irish proletarians. (Edinb. Rev.
+ LXXX, 80.) According to <i>Fregier</i>, les Classes dangereuses, the
+ number of good buildings continually increased under Louis Philippe,<a
+ name= "fnanchor_TN108" id= "fnanchor_TN108"></a><a href= "#footnote_TN108"
+ class= "fnanchor">[TN 108]</a> and that of the worst lodging houses
+ continually diminished. In Prussia, between 1819 and 1858, the population
+ increased 60.8 per cent., the number of houses, 30.1 per cent.; but the
+ insurance-value of the houses seems to have increased in a still greater
+ proportion, (<i>v. Viebahn</i>, Zollverein's Statist., II, 291, ff., 299.)
+ According to <i>Horn</i>, Bevölk. Studien, I, 62, ff., there are to every
+ 100 persons in France, 20 dwelling houses; in Belgium, 19; in Great
+ Britain, 18; in Holland, 16; in Austria, 14; in Prussia, 12. Too much
+ should not be inferred from this mere table, as, for instance, in English
+ cities, a house is, on an average, smaller than in the Prussian. A French
+ house has, on an average, only 5½ windows and doors; a Belgian house, on
+ the other hand, 3½ rooms. And so, in villages, it is found that there are
+ uniformly fewer persons to a house than in cities, especially large ones.
+ In Belgium, for instance, the cities have to every 100 inhabitants, 66
+ rooms, the country only 62. In the largest parishes of France (over 5,000
+ inhabitants), the number of doors and windows is on the average almost six
+ times as great as in the smallest (under 5,000 inhabitants); but only 4
+ times as many persons live in them. (<i>Horn</i>, loc. cit. I, 76 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_254-5" id="footnote_254-5"></a>
+ <a href="#fnanchor_254-5">[254-5]</a>
+ It was very well remarked, even of the Servian census: <i>ut omnia
+ patrimonii, dignitatis, ætatis, artium officiorumque discrimina in tabulas
+ referrentur, ac sic maxima civitas minimæ domus diligentia contineretur
+ ... ut ipsa se nosset respublica</i>. (<i>Florus</i>, I, 6, 8.)</p>
+
+<p class="p2 center"><a name="S255"></a>SECTION CCLV.<span
+class='pagenum'>[Pg 347]</span></p>
+
+<p class="center smaller">MEANS OF PROMOTING POPULATION.</p>
+
+<p>The following are the principal means which have been used to
+artificially promote the increase of population:</p>
+
+<p>A. Making marriage and the procreation of children obligatory by direct
+command. Among almost all medieval nations so strong is the family feeling,
+that it seems to men to be a sacred duty to keep their family from becoming
+extinct. Where a person is not in a condition physically to fulfill this
+duty, the law supplies a means of accomplishing it by juridical
+substitution<a name="fnanchor_255-1" id="fnanchor_255-1"></a><a href=
+"#footnote_255-1" class="fnanchor">[255-1]</a> at least. Most national
+religions<a name= "fnanchor_255-2" id= "fnanchor_255-2"></a><a href=
+"#footnote_255-2" class="fnanchor">[255-2]</a> operate in the same
+direction, as well as the influence of political law-givers, who fully
+share in the contempt for willful old bachelors and sterile women, which
+runs through the national feeling of all medieval times.<a name=
+"fnanchor_255-3" id= "fnanchor_255-3"></a><a href= "#footnote_255-3" class=
+"fnanchor">[255-3]</a> In addition to this, there are the positive <span
+class='pagenum'>[Pg 348]</span> rewards offered for large families of
+children.<a name="fnanchor_255-4" id="fnanchor_255-4"></a><a href=
+"#footnote_255-4" class="fnanchor">[255-4]</a> Even Colbert, in 1666,
+decreed that whoever married before his 20th year should be exempt from
+taxation until his 25th; that anyone who had 10 legitimate children living,
+not priests, should be exempt from taxation for all time;<a name=
+"fnanchor_255-5" id="fnanchor_255-5"></a><a href="#footnote_255-5"
+class="fnanchor">[255-5]</a> that a nobleman having 10 children living
+should receive a pension of 1,000 livres, and one having 12, 2,000 livres.
+Persons not belonging to the nobility were to receive one-half of this, and
+to be released from all municipal burthens.<a name="fnanchor_255-6"
+id="fnanchor_255-6"></a><a href="#footnote_255-6" class="fnanchor">[255-6]
+</a> Such premiums are, indeed, entirely superfluous. No nobleman would
+desire 12 children simply to obtain a pension of 2,000 livres! Colbert
+himself abandoned this system of premiums shortly before his death.<a
+name="fnanchor_255-7" id="fnanchor_255-7"></a><a href="#footnote_255-7"
+class="fnanchor">[255-7]</a> <a name="fnanchor_255-8" id="fnanchor_255-8">
+</a> <a href="#footnote_255-8" class= "fnanchor">[255-8]</a></p>
+
+<p><span class='pagenum'>[Pg 349]</span>In the case of morally degenerated
+nations, in which an aversion to the married state had gained ground,
+efforts have sometimes been made to work against it by means of new
+premiums. Thus, especially in Rome, since the times of Cæsar and Augustus,
+although with poor success. It little becomes one who is himself a great
+adulterer to preach the sixth commandment.<a name="fnanchor_255-9"
+id="fnanchor_255-9"></a><a href="#footnote_255-9" class="fnanchor">[255-9]
+</a></p>
+
+ <p class="footnote"> <a name="footnote_255-1" id="footnote_255-1"></a>
+ <a href="#fnanchor_255-1">[255-1]</a>
+ In Sparta, impotent husbands were obliged to allow another man to have
+ access to their young wives. (<i>Xenoph.</i>, De Rep. Laced., I.
+ <i>Plutarch</i>, Lycurg., 15.) Compare <i>J. Grimm</i>, Weisthümer, III,
+ 42. Great importance of adoption in Roman law.</p>
+
+ <p class="footnote"> <a name="footnote_255-2" id="footnote_255-2"></a>
+ <a href="#fnanchor_255-2">[255-2]</a>
+ Thus, the Indian laws of Menu, concerned principally with the necessity of
+ sacrifices to assure parents an existence after death. Similarly,
+ Zoroaster and Mohammed. In the Bible the periods should be accurately
+ distinguished: I Moses, 2, 18; V Moses, 26, 5; Judges, 10, 4; 13, 14;
+ Proverbs, 14, 28; 17, 6, and the Preacher, 4, 8 apparently agree; also I
+ Corinth., 7, written under essentially different circumstances but
+ precisely on this account not in contradiction with those passages of the
+ Old Testament.</p>
+
+ <p class="footnote"> <a name="footnote_255-3" id="footnote_255-3"></a>
+ <a href="#fnanchor_255-3">[255-3]</a>
+ Genesis, 30, 23. In Sparta, willful bachelorhood was almost infamous.
+ (<i>Plutarch</i>, Lycurg., 15.) In Athens, a person might be charged with
+ <i>agamy</i> as with a crime. (<i>Pollux</i>, VIII, 40.) Concerning the
+ ancient censorial punishments inflicted on those who had no children and
+ the rewards of prolificacy, see <i>Valer. Max.</i>, II, 9, 1; <i>Livy</i>,
+ XLV, 15; <i>Gellius</i>, I, 6: V, 19. Festus v. Uxorium. Many German
+ cities made marriage a qualification for the holding of certain public
+ offices, etc. In some places, the public treasury was made the heir of
+ bachelors, a custom not abolished in Hanover until 1732. Compare
+ <i>Ludewig</i>, on the Hagestolziatu (1727), but also <i>Selchow</i>,
+ Elem. Juris Germ., § 290. On the fines imposed on old bachelors in Spain,
+ during the middle ages, see <i>Gans</i>, Erbrecht, III, 401 seq. Recently
+ recommended very strongly by <i>Hermes</i>, Sophiens Reise (3 aufl.), I,
+ 660.</p>
+
+ <p class="footnote"> <a name="footnote_255-4" id="footnote_255-4"></a>
+ <a href="#fnanchor_255-4">[255-4]</a>
+ Yearly rewards for <i>polytekny</i> in Persia: <i>Herodot.</i>, I 136. In
+ Sparta, a father with three children was relieved of guard duty; and one
+ with four, of all public burthens. (<i>Aristot.</i>, Polit., II, 6, 13.
+ <i>Aclian</i>, V. H., VI, 6.) Between 1816 and 1823, 250 fathers received
+ the royal gift made to godchildren at their christening in the district of
+ Oppeln, for the seventh son. (<i>v. Zedlitz</i>, Staatskräfte der preuss.
+ Monarchie, I, 285.) The king of Hannover paid annually about 900 thalers
+ in such gifts. <i>Lehzen</i>, Hannovers Staatshaushalt, II, 346.</p>
+
+ <p class="footnote"> <a name="footnote_255-5" id="footnote_255-5"></a>
+ <a href="#fnanchor_255-5">[255-5]</a>
+ Children who had fallen in the service of their country were considered as
+ still living. Precisely similar laws had existed in Spain from 1623 (<i>de
+ Laet</i>, Hispania Cap., 4); in Savoy from 1648 (<i>Keysslers</i>, Reise,
+ I, 209).</p>
+
+ <p class="footnote"> <a name="footnote_255-6" id="footnote_255-6"></a>
+ <a href="#fnanchor_255-6">[255-6]</a>
+ Russian law which required the serf master to emancipate his male serfs
+ who were not married by their 20th year, and female serfs not married by
+ their 18th. He could not charge them with desertion in such case, even
+ where combined with theft. (<i>Karamsin</i>, Russ. Gesch., XI, 59.) An
+ ancient Prussian law provides that the country people shall marry at the
+ age of 25. Corpus Const., March, V, 3, 148, 274.</p>
+
+ <p class="footnote"> <a name="footnote_255-7" id="footnote_255-7"></a>
+ <a href="#fnanchor_255-7">[255-7]</a>
+ Lettres, etc. de Colbert, <i>éd</i>. Clément, II, 68, 120.
+ <i>Voltaire</i>, Siècle de Louis XIV. ch. 29, bitterly complains of this;
+ and also <i>Berkeley</i>, Works, II, 187, and <i>Forbonnais</i>, Finances
+ de France, I, 391. On the other hand, <i>Ferguson</i>, Hist, of Civil
+ Society, III, 4, asks: what fuel can the statesman add to the fires of
+ youth? Similarly, <i>Franklin</i>, Observations, etc. It should not be
+ forgotten that the taxes necessary to supply the so-called marriage-fund,
+ intended to enable poor couples to marry at the expense of the state, make
+ marriage more difficult for other couples. (<i>Krug</i>, Staats-Oek.,
+ 31.)</p>
+
+ <p class="footnote"> <a name="footnote_255-8" id="footnote_255-8"></a>
+ <a href="#fnanchor_255-8">[255-8]</a>
+ Frederick the Great limited the mourning time of widowers to 3 months and
+ of widows to 9. His abolition of ecclesiastical punishment for those who
+ had fallen, and his prohibition of censuring them under penalty of fine,
+ was based as much on his population policy as on philanthropic grounds.
+ (Preuss. Geschichte, Friedrich's M., II, 337.) Similarly in Sweden:
+ <i>Schlözer</i>, V. W., V, 43. In Iceland, after a great plague, even in
+ the last century, it was provided that it should be no disgrace to a young
+ woman to have as many as six illegitimate children. (<i>Zacchariä</i>,
+ Vierzig Bücher vom Staate, II, 112.) The marshal of Saxony wished, in the
+ interest of the recruiting of the army, that marriages should be
+ contracted only for a term of five years. (Rêveries de Maurice, etc.,
+ 345.) The sterile women of Egypt visit the Tantah, a place of pilgrimage
+ and fair-town, where, under the cloak of religion, they give themselves up
+ to unbridled and promiscuous intercourse. (<i>Wachenhufen</i>, vom ägypt.
+ armen Mann, II, 151 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_255-9" id="footnote_255-9"></a>
+ <a href="#fnanchor_255-9">[255-9]</a>
+ Even in the year 131 B. C., the censor Metellus demanded that citizens
+ should, for political reasons be compelled to marry. (<i>Livy</i>, LIX,
+ <i>Sueton.</i>, Oct. 89.) <i>Aes uxorium</i> for bachelors. (<i>Valer.
+ Max.</i>, II, 9, I.) Cæsar distributed land by way of preference among
+ those who had three or more children. (<i>Sueton.</i>, Cæs. 20.) Augustus'
+ celebrated Lex Julia et Papia Poppæa sought to urge even widows to marry
+ again in opposition to the moral public conscience. (Partly augendo
+ ærario: <i>Tacit.</i>, Ann., III, 25.) <i>Dio Cass.</i>, LVI, 1 ff. Trajan
+ did more yet, inasmuch as he gave great assistance to impoverished
+ parents, even of the highest classes, to enable them to educate their
+ children. <i>Sub te liberos tollere libet, expedit!</i> (<i>Plin.</i>,
+ Paneg., 26.) Of what little assistance all this really was,
+ <i>Tacitus</i>, Ann., III, 25, IV, 16, and <i>Plin.</i>, Epist. IV, 15,
+ bear witness. If, under the Cæsars, the damage done to the childless in
+ the case of inheritance was a frequent motive of divorce
+ (<i>Friedländer</i>, Sittengeschichte I, 389), the L. Julia, in fact,
+ operated in a direction contrary to that in which it was intended to
+ work.</p>
+
+<p class="p2 center"><a name="S256"></a>SECTION CCLVI.</p>
+
+<p class="center smaller">IMMIGRATION.</p>
+
+<p>B. Calling for immigrants. This is a means all the more in favor,
+inasmuch as it provides the country not only with new-born children, but
+with mature men, who frequently, when they come from thickly peopled and
+highly civilized <span class='pagenum'>[Pg 350]</span> countries, promote
+the industries of the country of their adoption, and become the teachers of
+a higher civilization. I need only mention the inhabitants of the Low
+Countries, who in the twelfth century settled as agriculturists in Northern
+Germany,<a name="fnanchor_256-1" id="fnanchor_256-1"></a><a
+href="#footnote_256-1" class="fnanchor">[256-1]</a> and in the fourteenth
+and sixteenth centuries in England, as artisans; the German miners and
+inhabitants of cities, who, during the middle ages, colonized Hungary,
+Transylvania<a name= "fnanchor_256-2" id= "fnanchor_256-2"></a><a
+href="#footnote_256-2" class="fnanchor">[256-2]</a> and Poland,<a
+name="fnanchor_256-3" id="fnanchor_256-3"></a><a href= "#footnote_256-3"
+class="fnanchor">[256-3]</a> and the French Huguenots, who fled to the
+Independent Protestant countries. Nearly all the remarkable Russian princes
+since Ivan III. have endeavored in this way to induce Germans to settle in
+Russia, and, for the same reason, Peter the Great refused to give up his
+Swedish prisoners of war.<a name= "fnanchor_256-4" id=
+"fnanchor_256-4"></a><a href= "#footnote_256-4" class=
+"fnanchor">[256-4]</a> The great Prussian rulers have cultivated the policy
+of immigration on an extensive scale, and thus maintained the original
+character of their parent provinces as the colonial land of the German
+people.<a name="fnanchor_256-5" id= "fnanchor_256-5"></a><a href=
+"#footnote_256-5" class="fnanchor">[256-5]</a> <a name= "fnanchor_256-6"
+id="fnanchor_256-6"></a> <a href="#footnote_256-6" class=
+"fnanchor">[256-6]</a></p>
+
+<p><span class='pagenum'>[Pg 351]</span>Such immigrants have been generally
+accorded a release from taxation and from military duty for a number of
+years; a proper measure since the state thereby only surrendered an
+advantage temporarily which it otherwise would not have possessed at all.
+Where the land of the state receiving the immigrants was still almost
+valueless, it has frequently been made over in parcels to well-to-do
+colonists without consideration.<a name= "fnanchor_256-7" id=
+"fnanchor_256-7"></a><a href= "#footnote_256-7"
+class="fnanchor">[256-7]</a> Assistance exceeding these limits is a very
+questionable boon. It should not be forgotten that the influx of men who
+bring no capital whatever with them, and who are not good workmen, is of no
+advantage. Nor are they always the best elements of a people who emigrate.
+They are very frequently men who, through their own fault, did not prosper
+at home, and who come to the new country, with all their old faults.<a
+name="fnanchor_256-8" id= "fnanchor_256-8"></a><a href= "#footnote_256-8"
+class= "fnanchor">[256-8]</a> This is, of course not true of those who
+emigrate <span class='pagenum'>[Pg 352]</span> from their attachment to
+some great principle; for instance, it is not true of those who emigrate in
+search of freedom of conscience. These may become, provided they are in
+harmony with their new environment, a support and ornament to their adopted
+country.<a name="fnanchor_256-9" id="fnanchor_256-9"></a><a
+href="#footnote_256-9" class="fnanchor">[256-9]</a> But there is always
+danger that they may not be able to adapt themselves to their new economic
+relations, and that thus they may in consequence succumb to the pressure of
+circumstances.<a name="fnanchor_256-10" id="fnanchor_256-10"></a><a
+href="#footnote_256-10" class="fnanchor">[256-10]</a></p>
+
+<p>Oriental despotisms have frequently endeavored to assure themselves the
+possession of newly conquered countries by <span class='pagenum'>[Pg
+353]</span> transporting its most vigorous inhabitants in whole masses to a
+distant part of their old empire. Thus, the Jews were carried into Assyria
+and Babylon; the Eretrians into Persia; the inhabitants of Caffa by
+Mohammed II.; the Armenians by Abbas the Great. The Russians, too,
+undertook a similar transportation of people under the Ivans.<a
+name="fnanchor_256-11" id="fnanchor_256-11"></a><a href="#footnote_256-11"
+class="fnanchor">[256-11]</a></p>
+
+<p>C. The prohibition of emigration, which, in the case of serfs, vassals
+and state-villeins, it seems natural enough, was very usual in periods of
+absolute monarchical power. Thus, for instance, Frederick William I.
+forbade the emigration of Prussian peasants under penalty of death. Whoever
+captured an emigrant received a reward of two hundred thalers.<a
+name="fnanchor_256-12" id="fnanchor_256-12"></a><a href="#footnote_256-12"
+class="fnanchor">[256-12]</a> The public opinion of modern times is very
+decidedly opposed to this compulsion, which would make the state a
+prison.<a name= "fnanchor_256-13" id= "fnanchor_256-13"></a><a
+href="#footnote_256-13" class="fnanchor">[256-13]</a> "A really excessive
+population would still find an exit to <span class='pagenum'>[Pg
+354]</span> escape, namely, through the gates of death." (<i>J. B.
+Say.</i>) The statesman, on the other hand, who opposes the withdrawal of
+political or ecclesiastical malcontents should take care, lest he act like
+the physician who prevents the discharge of diseased matter from the sick
+body, and causes it to take its seat in some vital organ.<a
+name="fnanchor_256-14" id="fnanchor_256-14"></a><a href="#footnote_256-14"
+class="fnanchor">[256-14]</a> Hence, even where emigration is considered
+detrimental to the country, no governmental condition should be attached to
+it, except that the person desiring to emigrate should give timely notice
+of his intention, and receive his passport only after it has been shown
+that he has discharged all his military duties, paid his taxes and his
+debts.<a name= "fnanchor_256-15" id= "fnanchor_256-15"></a><a
+href="#footnote_256-15" class="fnanchor">[256-15]</a> <a name=
+"fnanchor_256-16" id="fnanchor_256-16"></a><a href="#footnote_256-16"
+class="fnanchor">[256-16]</a></p>
+
+<p>The severe penalties imposed in Athens on emigration, after the defeat
+at Chæronea, when general discouragement threatened the state with total
+dissolution, belong to an entirely different mode of thought.<a
+name="fnanchor_256-17" id="fnanchor_256-17"></a> <a href="#footnote_256-17"
+class="fnanchor">[256-17]</a></p>
+
+ <p class="footnote"> <a name="footnote_256-1" id="footnote_256-1"></a>
+ <a href="#fnanchor_256-1">[256-1]</a>
+ <i>v. Wersebe</i>, Ueber die Niederlandischen Kolonien in Deutschland, II,
+ 1826.</p>
+
+ <p class="footnote"> <a name="footnote_256-2" id="footnote_256-2"></a>
+ <a href="#fnanchor_256-2">[256-2]</a>
+ The immigration of the so-called Saxons into Transylvania began between
+ 1141 and 1161, in consequence of the great inundations in the Netherlands.
+ Compare <i>Schlözer</i>, Kritische Sammlungen zur Gesch. der Deutschen in
+ Siebenb., 1795.</p>
+
+ <p class="footnote"> <a name="footnote_256-3" id="footnote_256-3"></a>
+ <a href="#fnanchor_256-3">[256-3]</a>
+ In Poland, a multitude of German colonists established themselves during
+ the thirteenth century on the domains of the crown and of the church. As a
+ rule, they obtained the land in consideration of moderate services and
+ rents, which, however, did not begin to run until after eight years, nor
+ until after thirty for uncleared land. In addition to this, they were
+ governed by the German law, and their communal authorities were for the
+ most part German. (<i>Roepell</i>, Gesch. von Polen, I, 572 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_256-4" id="footnote_256-4"></a>
+ <a href="#fnanchor_256-4">[256-4]</a>
+ Later, the ambassador of Peter the Great endeavored to attract into Russia
+ the Swedes, whom the Russian invasion had prevented from continuing the
+ operation of their mines, saw mills, etc. (<i>Schlosser</i>, Gesch. des 18
+ Jahrhund., I, 205.) Catherine's colonization, especially on the Volga and
+ in. Southern Russia, 1765 and 1783. About 1830, the number of the
+ colonists was estimated at 130,000, mostly Germans.</p>
+
+ <p class="footnote"> <a name="footnote_256-5" id="footnote_256-5"></a>
+ <a href="#fnanchor_256-5">[256-5]</a>
+ It is estimated that Frederick William I. spent 5,000,000 thalers in
+ establishing colonists. Up to 1728, 20,000 new families were received into
+ Prussia alone. <i>Stenzel</i>, Preuss. Gesch. III, 412 ff. Frederick the
+ Great endeavored above all to retain in the country the strangers who came
+ there periodically. Thus, the harvesters of Vogtland, in the neighborhood
+ of Magdeburg, and the Vogtland masons in the suburbs of the capital
+ (1752). Compare <i>v. Lamotte</i> Abhandlungen, 1793, 160 ff. He is said
+ to have settled 42,600 families, mostly foreigners, in 539 villas and
+ hamlets. Besides, the population of Prussia, between 1823 and 1840,
+ increased by 751,749 immigrants, without any positive favors shown them
+ (<i>Hoffmann</i>, Kleine Schriften, 5 ff.), and the greater part of these
+ were not very poor.</p>
+
+ <p class="footnote"> <a name="footnote_256-6" id="footnote_256-6"></a>
+ <a href="#fnanchor_256-6">[256-6]</a>
+ In antiquity, nothing so much contributed to the rise of Athens and Rome
+ as their reception of noble refugees during its earlier periods.</p>
+
+ <p class="footnote"> <a name="footnote_256-7" id="footnote_256-7"></a>
+ <a href="#fnanchor_256-7">[256-7]</a>
+ In Russia, the Emperor Alexander, in 1803, promised the colonists a full
+ release from taxation during ten years, a reduction of taxation for ten
+ more, and freedom from civil and military service for all time; besides 60
+ <i>dessatines</i> of land per family gratis, an advance of 300 rubles for
+ housebuilding, etc. and money to enable them to maintain themselves until
+ their first harvest. The provision relating to Poland (1833) was much less
+ favorable: importation of movable property free of duty, freedom from
+ military duty and from taxation for six years, and perpetual quit rents
+ (<i>Erbzinsgüter</i>) to agriculturists who owned a certain amount of
+ capital. Brazil promised immigrants, in 1820, land and ten years' freedom
+ from taxation. Compare <i>Jahn</i>, Beiträge, z. Einwanderung und
+ Kolonisation in Br. (1874), 37 ff. Hungary, in 1723, accorded settlers
+ freedom from taxation for six years and artisans for fifteen years.
+ (<i>Mailath</i>, Oesterreichische Gesch., IV, 525.) The ordinance of 1858
+ affords too little security for non-Catholics and is not adapted to
+ farmers, but only to purchasers.</p>
+
+ <p class="footnote"> <a name="footnote_256-8" id="footnote_256-8"></a>
+ <a href="#fnanchor_256-8">[256-8]</a>
+ Many of Frederick the Great's colonists turned out very badly. They were
+ attracted only by the premiums offered, and they became dissolute after
+ they had consumed them. Many of them thought that they were to be of use
+ only by giving children to the state (<i>Meissner</i>, Leben des Herrn v.
+ Brenkenhof, 1782), and that the land donated them was to be cultivated by
+ others at the expense of the state! <i>Dohm</i> mentions villages of
+ colonists which had to a great extent changed hands four times in 20
+ years. Whether the king would not have better attained his object had he
+ employed the younger sons of Prussian peasants as colonists, <i>quære</i>.
+ (<i>Dohm</i>, Denkwürdigkeiten, IV, 390 ff.) Even <i>Süssmilch</i> says:
+ "A native subject is, in most cases and for most purposes, better than two
+ colonists." (Göttl. Ordnung, I, 14, 275.) Compare the work: Wie dem
+ Bauernstande Freiheit und Eigenthum verschafft werden könne, 1769, 16.
+ Every family of colonists in South and new East Prussia is said to have
+ cost the state 1,500 thalers. (<i>Weber</i>, Lehrbuch der polit. Oekonomie,
+ 1806, II, 172); but according to <i>Büsching</i> (Beiträge z.
+ Regierungsgeschichte Friedrichs,<a name= "fnanchor_TN109" id=
+ "fnanchor_TN109"></a><a href= "#footnote_TN109" class= "fnanchor">[TN
+ 109]</a> II, 239), only 400 thalers. <i>J. Möser</i> is strongly opposed
+ to the encouragement of immigration by direct appeals to it. (P. Ph., I,
+ 60.) According to <i>Bülau</i>, Staatswirthschaftslehre, 24, only those
+ immigrants are welcome who are attracted to the country by the whole
+ character of its national institutions and circumstances. It is a
+ different matter when, for instance, the government in New South Wales
+ permits the colonists, by the payment of very moderate contributions, to
+ have their workmen, friends and relations come after them from England in
+ ships owned by the government. Between 1832 and 1858, £1,700,000 were paid
+ out for such transportation. (Novara-Reise, III, 53.)</p>
+
+ <p class="footnote"> <a name="footnote_256-9" id="footnote_256-9"></a>
+ <a href="#fnanchor_256-9">[256-9]</a>
+ Dutch Remonstrants since 1619 in Schleswig; Huguenots established since
+ 1685, in Prussia, to the number of about 11,000; Waldenses in Prussia
+ since 1686; natives of Salzburg<a name= "fnanchor_TN110" id=
+ "fnanchor_TN110"></a><a href= "#footnote_TN110" class= "fnanchor">[TN
+ 110]</a> and of the Palatinate in Prussia. For a state which is the
+ representative of a religious or political principle, it may be a matter
+ of honor, and then certainly useful, to afford an asylum to persons,
+ adherents of that principle.</p>
+
+ <p class="footnote"> <a name="footnote_256-10" id="footnote_256-10"></a>
+ <a href="#fnanchor_256-10">[256-10]</a>
+ On the German colonists whom Olavides settled in Spain, in 1768 etc., see
+ <i>Schlözer's</i> Briefwechsel, 1779, IV, 587 ff. See adv.: Ueber Sitten,
+ Temperament etc., Spaniens von einem reisenden Beobachter in den J., 1777
+ und<a name= "fnanchor_TN111" id= "fnanchor_TN111"></a><a href=
+ "#footnote_TN111" class= "fnanchor">[TN 111]</a> 1778, Leipzig, 1781, p.
+ 260, ff.</p>
+
+ <p class="footnote"> <a name="footnote_256-11" id="footnote_256-11"></a>
+ <a href="#fnanchor_256-11">[256-11]</a>
+ Canale Crimea, III, 346 ff. <i>Karamsin</i>, Russ. Geschichte, VIII, 97,
+ 424.</p>
+
+ <p class="footnote"> <a name="footnote_256-12" id="footnote_256-12"></a>
+ <a href="#fnanchor_256-12">[256-12]</a>
+ Ordinance of 1721. Compare <i>Wolf's</i> Vernünftige Gedanken, § 483, who
+ at that time highly disapproved of such compulsion. Quite the reverse, the
+ Prussian Landrecht, II, Tit. 17, § 133 ff. On the other hand, in Spires,<a
+ name= "fnanchor_TN112" id= "fnanchor_TN112"></a><a href= "#footnote_TN112"
+ class= "fnanchor">[TN 112]</a> in 1765 and 1784, persons of good conduct,
+ good workmen and others of sufficient means, were forbidden to emigrate.
+ Prohibition under pain of death, in Spanish Milan; Novæ Constitut., 29,
+ 145. The work: Les Intérêts de la France maletendus (1752), 258, advocates
+ the prohibition of emigration as a species of <i>les majesté</i>.</p>
+
+ <p class="footnote"> <a name="footnote_256-13" id="footnote_256-13"></a>
+ <a href="#fnanchor_256-13">[256-13]</a>
+ <i>Beccaria</i>, Dei Delitti e delle Pene, 1765, cap. 52. Similarly,
+ <i>Mirabeau</i>, in his congratulatory letter to Fred. Wil. II., and
+ <i>Benjamin Franklin</i>, On a proposed Act for preventing Emigration:
+ Works, IV, 458 ff. The Dutch were very early advocates of freedom of
+ emigration. Compare <i>U. Huber</i>, De Jure Civit., 1672, II, 4;
+ <i>Pufendorff</i>, Jus. Natur. (1672), VIII, 11. Theorizers otherwise the
+ most opposite in their views are here agreed. <i>Jeremy Bentham</i> says
+ that properly speaking a prohibition against emigration should begin with
+ the words: We, who do not understand the art of making our subjects happy;
+ in consideration that if we should allow them to take flight, they would
+ all betake themselves to strange and better governed countries, etc. Des
+ Récompenses et des Peines, II, 310. But also <i>K. L. v. Haller</i>,
+ Restauration der Staatswissenschaft, I, 429 ff., 508, demands most
+ strenuously that there should be freedom of emigration, for the reason
+ that every man, without prejudice to any one else, might seek the state
+ constitution which he wanted, <i>J. Tucker</i> entirely approved the
+ English law prohibiting the emigration of workmen. Compare also <i>J.
+ Bodin</i>, De Republ., I, 6.</p>
+
+ <p class="footnote"> <a name="footnote_256-14" id="footnote_256-14"></a>
+ <a href="#fnanchor_256-14">[256-14]</a>
+ English prohibition of emigration under Charles I., 1637. <i>Rymer</i>,
+ Fœdera XX, 143. The story that Cromwell and Hampden were thus detained in
+ the country may be false, however. (<i>Bancroft</i>, History of the United
+ States, I, 445.) Earlier prohibition of emigration of the Norwegian king
+ in relation to Iceland. (<i>Schlegel</i>, Grâgas, Comment Crit. p. XV.) In
+ ancient Greece, the restriction of emigration by foreign powers
+ contributed very largely to the democratization of the mother country.
+ Something similar is impending over Germany if the present emigration
+ towards North America should be much weakened by a change of circumstances
+ there.</p>
+
+ <p class="footnote"> <a name="footnote_256-15" id="footnote_256-15"></a>
+ <a href="#fnanchor_256-15">[256-15]</a>
+ Many governments require proof that the person emigrating will be admitted
+ into his contemplated new home, and that he has the means to cover the
+ expenses of the journey. The threat of not receiving back returning
+ emigrants has very little effect, for the reason that it is the most
+ thoughtless who at the moment of emigration entertain the most
+ rose-colored hopes.</p>
+
+ <p class="footnote"> <a name="footnote_256-16" id="footnote_256-16"></a>
+ <a href="#fnanchor_256-16">[256-16]</a>
+ I shall treat of the so-called after-tax (<i>Nachsteuer</i>) in the fourth
+ volume of my System.</p>
+
+ <p class="footnote"> <a name="footnote_256-17" id="footnote_256-17"></a>
+ <a href="#fnanchor_256-17">[256-17]</a>
+ Compare <i>Lycurg259</i>., adv., Leocrat. <i>Cæsar</i> forbade all persons
+ of senatorial rank to emigrate out of Italy; other persons between 20 and
+ 40 years of age were not to remain absent over three consecutive years at
+ most. For the same reason, the time of military service was shortened.
+ (<i>Mommsen</i>, R. G., III, 491.)</p>
+
+<p class="p2 center"><a name="S257"></a>SECTION CCLVII.<span
+class='pagenum'>[Pg 355]</span></p>
+
+<p class="center smaller">SANITARY POLICE.</p>
+
+<p>D. Hygienic measures and the improvement of the sanitary police of a
+country are of the utmost importance, not only to increase the number of
+inhabitants, but also to produce the conditions of population described in
+§ 246.<a name="fnanchor_257-1" id="fnanchor_257-1"></a><a href=
+"#footnote_257-1" class="fnanchor">[257-1]</a></p>
+
+<p>E. It is the indispensable condition precedent of all the measures which
+we have examined, if they would attain their end, that the means of
+subsistence of the people should be increased or at least more equally
+divided among them. Where this has been done the increase of population
+will, as a rule, take care of itself; where it has not, the artificially
+increased procreation of children can only produce new victims for the
+angel of death. A merely more equable distribution can, however, improve
+the condition of the people only in exceedingly rare cases. (§ 204). As a
+rule, the diseases which it is attempted to thus cure grow worse, or they
+at least increase in extent. (§ 80, ff., 250.) It is quite different, of
+course, when the more equable distribution coincides with an absolute
+growth of the nation's economy. We shall see, later, that, for instance,
+the freedom of land alienation and of industrial pursuits, when not
+accompanied by an important advance in the corresponding branches of
+economy may do more harm than good; but that under favorable circumstances
+a multitude of dormant forces are thereby awakened, and that then the
+national-economical dividend may be increased much more than the divisor.
+(§ 239. <i>Roscher</i>, Nationalökonomik des Ackerbaues, § 99, 139 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_257-1" id="footnote_257-1"></a>
+ <a href="#fnanchor_257-1">[257-1]</a>
+ <i>Bacon</i> in his History of Life and Death, or of the Prolongation of
+ Life, hopes the better physicians "will not employ their times wholly in
+ the sordidness of cures, neither be honoured for necessities only; but
+ that they will become coadjutors and instruments of the divine omnipotence
+ and clemence in prolonging and renewing the life of man."</p>
+
+<p><span class='pagenum'>[Pg 356]</span></p>
+
+<p class="p2 center"><a name="S258"></a>SECTION CCLVIII.</p>
+
+<p class="center smaller">MEANS OF LIMITING THE INCREASE OF POPULATION.</p>
+
+<p>A. The means which consists in rendering marriage less easy by
+legislation is surrounded with peculiar difficulties in densely populated
+countries, which are always highly civilized. The state would have here to
+swim against the stream, and it would be generally a much less difficult
+task to enlarge the field of food. If there remained from a former period
+any inducements held out to promote marriage, it is self evident that they
+should now be discontinued. A voluntary bachelor must now no longer be
+considered as a man who permits one more woman to become an old maid, but
+as one who facilitates marriage to another couple.<a name="fnanchor_258-1"
+id= "fnanchor_258-1"></a><a href= "#footnote_258-1" class=
+"fnanchor">[258-1]</a> On the other hand, it should not be forgotten that,
+for men, generally, marriage is not only an occasion of increased outlay,
+but also an incentive to increased activity and greater economy.<a
+name="fnanchor_258-2" id="fnanchor_258-2"></a><a href="#footnote_258-2"
+class="fnanchor">[258-2]</a> Many states have endeavored to condition the
+founding of a family by requiring evidence that the father has a prospect
+of being able to support one.<a name= "fnanchor_258-3" id= "fnanchor_258-3"></a><a href= "#footnote_258-3" class= "fnanchor">[258-3]</a> <span
+class='pagenum'>[Pg 357]</span> Distinguished theorizers accede to this
+condition, inasmuch as they deny the right of over-population.<a
+name="fnanchor_258-4" id="fnanchor_258-4"></a><a href="#footnote_258-4"
+class="fnanchor">[258-4]</a> But, unfortunately, it is impossible, except
+in a few extreme cases, to assert or deny a prospect of being able to
+support a family.<a name="fnanchor_258-5" id="fnanchor_258-5"></a><a
+href="#footnote_258-5" class="fnanchor">[258-5]</a> How easily is the most
+remunerative power of labor destroyed by physical or mental disease.
+Scarcely less subject to change is the so-called certain opportunity of
+acquisition afforded by a profession or a trade, when it is not guarantied
+by the possession of considerable capital or of landed property, or by some
+legal privilege. The amount of property required by many laws is so small
+that it alone would suffice to support the family only for a few years.<a
+name="fnanchor_258-6" id="fnanchor_258-6"></a><a href="#footnote_258-6"
+class="fnanchor">[258-6]</a> And yet it has been generally <span
+class='pagenum'>[Pg 358]</span> provided that the proof of such a property
+gave one an unconditional right to establish a domicile and to marry. It is
+only where this is wanting that special consent is required. But who shall
+exercise this right of consent? The parish, perhaps, because on it the
+impoverished family would fall as a burthen. But it is to be feared that
+the course of procedure here would be too severe. Local narrow-heartedness
+might refuse the right of domicile to skillful and industrious candidates,
+who are in the best situation to maintain a family, but whose competition
+the older members of the parish might dread.<a name="fnanchor_258-7"
+id="fnanchor_258-7"></a><a href="#footnote_258-7" class=
+"fnanchor">[258-7]</a> Hence, in most countries, the parish is treated as a
+party, on whose protest against the marriage the state itself <span
+class='pagenum'>[Pg 359]</span> decides<a name="fnanchor_258-8" id=
+"fnanchor_258-8"></a><a href="#footnote_258-8" class=
+"fnanchor">[258-8]</a> If the state authorities were to give the immediate
+decisions in such cases, we might expect, in ordinary times, a liberality
+which would frustrate the object of the law; but sometimes, also,
+considerable chicanery on grounds of so-called higher police.</p>
+
+<p>Where there still exist classes and corporations with real independence,
+the members of which still attach a real value to the body, the matter
+takes care of itself. The journeyman, for instance, voluntarily retards his
+marriage until he has become a master workman, and once he has attained
+that degree, he "works the golden mine of his trade."<a
+name= "fnanchor_258-9" id="fnanchor_258-9"></a><a href="#footnote_258-9"
+class="fnanchor">[258-9]</a> But wherever a numerous proletariat exists,
+the individuals of which have no better future to expect, whatever their
+present sacrifices and self-denial, and who know nothing of class-wants or
+class-honor, prohibitions of marriage are severely felt, and are far from
+being well enforced.<a name="fnanchor_258-10" id="fnanchor_258-10"></a><a
+href="#footnote_258-10" class="fnanchor">[258-10]</a> The rule which
+excites least opposition is the fixing of a normal age for marriage, under
+which males should not be allowed to undertake its engagements.<a
+name="fnanchor_258-11" id="fnanchor_258-11"></a><a href="#footnote_258-11"
+class="fnanchor">[258-11]</a> Of all privileges those attaching to age are
+viewed <span class='pagenum'>[Pg 360]</span> with least aversion. Something
+similar is effected in most countries to-day by military conscription,
+which, on this account, in young countries, has a very restrictive effect
+on the increase of population.<a name="fnanchor_258-12" id=
+"fnanchor_258-12"></a><a href="#footnote_258-12" class=
+"fnanchor">[258-12]</a> The best means against thoughtless marriages
+certainly consists in increasing the measure of individual wants (§ 163);
+assuming, of course, that the added wants are proper and worthy.<a
+name="fnanchor_258-13" id="fnanchor_258-13"></a><a href="#footnote_258-13"
+class="fnanchor">[258-13]</a> There is always the consideration that all
+limitation of marriage, even voluntary self-limitation, by decreasing or
+postponing marriage, may prove disastrous to morals. It should, however,
+not be forgotten that there are other sins besides impurity, and that
+complete poverty constitutes one of the worst of temptations. Especially is
+it not the angel guardian of chastity.<a name="fnanchor_258-14"
+id= "fnanchor_258-14"></a><a href= "#footnote_258-14" class=
+"fnanchor">[258-14]</a></p>
+
+<p>In England<a name="fnanchor_258-15" id="fnanchor_258-15"></a> <a
+href="#footnote_258-15" class="fnanchor">[258-15]</a> and France, all
+governmental hinderances to marriage have long since ceased, and in
+Prussia, at least all general police hinderances; and we can by no means
+say that the consequences have been evil. On the other hand, no favorable
+results as to their influence on pauperism can be shown statistically from
+the restrictive laws of Württemberg. Rather do statistics point here to the
+unfavorable probable <span class='pagenum'>[Pg 361]</span> result of an
+increase of illegitimate births.<a name="fnanchor_258-16" id=
+"fnanchor_258-16"></a><a href= "#footnote_258-16" class=
+"fnanchor">[258-16]</a> According to the law of the North German
+Confederation of 1868, the contract of marriage, except in the case of
+soldiers, officials, clergymen and teachers, is so free, so far as police
+influence is concerned, that even actual poverty is no impediment.<a
+name="fnanchor_258-17" id="fnanchor_258-17"></a><a href="#footnote_258-17"
+class="fnanchor">[258-17]</a> <a name= "fnanchor_258-18" id=
+"fnanchor_258-18"></a><a href= "#footnote_258-18" class=
+"fnanchor">[258-18]</a> <a name= "fnanchor_258-19" id=
+"fnanchor_258-19"></a><a href= "#footnote_258-19" class=
+"fnanchor">[258-19]</a></p>
+
+ <p class="footnote"> <a name="footnote_258-1" id="footnote_258-1"></a>
+ <a href="#fnanchor_258-1">[258-1]</a>
+ In Ireland, the unsalaried condition of the Catholic clergy who depended
+ entirely on marriage fees (as high as £20 being paid by poor farmers.
+ Quart. Rev. No. 289), baptismal fees, burial fees, etc., operated as an
+ artificial stimulus to the increase of population under the most
+ unfavorable conditions. See § 254.</p>
+
+ <p class="footnote"> <a name="footnote_258-2" id="footnote_258-2"></a>
+ <a href="#fnanchor_258-2">[258-2]</a>
+ It is very noteworthy in this connection that married people commit
+ relatively fewer crimes than single persons. Thus, for instance, in
+ Prussia, in 1861, of every 1,000 unmarried men over 16 years of age, 1.18
+ were sent to the house of correction; of every 1,000 married men, only
+ 0.59; of every 1,000 divorced, 13.71! (Preuss. Statist. Zeitschr., 1864,
+ 318 seq.) In Austria, 1858-59, there was one person under sentence in
+ every 203 unmarried persons, in every 669 married, and in every 1,053
+ widows and widowers. Of the married, there was a larger proportion of
+ criminals among the childless than among those with children (49.8 per
+ cent. against 42.6 per cent.). Compare <i>v. Oettingen</i>,
+ Moralstatistik, 759. This evidence is all the stronger since,
+ circumstances being otherwise the same, fathers of families are harder
+ pressed by cares for food than single persons.</p>
+
+ <p class="footnote"> <a name="footnote_258-3" id="footnote_258-3"></a>
+ <a href="#fnanchor_258-3">[258-3]</a>
+ In Würtemberg, the authorities were for the first time enjoined in 1633,
+ to dissuade people from untimely marriages; in 1712 the consent of the
+ authorities to a marriage was made dependent on the evidence of a
+ religious education and the capacity to support a family. Between 1807 and
+ 1828, all restrictions on marriage because of incapacity to support a
+ family were removed. According to the Bavarian Penal Code of 1751 (I, 11,
+ § 7), persons who had married without governmental authorization, and who
+ could not afterwards support themselves except by begging, were sentenced
+ to at least one year in the workhouse and to be whipped once a week. Only
+ a short time ago scarcely any one in Bavaria had a real and unquestionable
+ right to marry. (<i>Braun</i>, Zwangscölibat für Mittellose in
+ <i>Faucher's</i> Vierteljahrsschrift, 1867, IV, 8.) Austrian law relating
+ to the proof of the certainty of maintaining one's self by one's trade
+ etc: 12 Jan., 1815; 4 Sept., 1825.</p>
+
+ <p class="footnote"> <a name="footnote_258-4" id="footnote_258-4"></a>
+ <a href="#fnanchor_258-4">[258-4]</a>
+ <i>R. Mohl</i>, in the 3d edition of his Polizeiwissenschaft, I, 152 ff.,
+ requires proof of the possession of a sufficiency of food, at least of the
+ means to begin house-keeping. According to <i>Marlo</i>, Weltökonomie,
+ III, 84 ff., and <i>Schäffle</i>, Kapitalismus und Socialismus, 689 ff.,
+ the compulsory insurance of widow and children should precede
+ marriage.</p>
+
+ <p class="footnote"> <a name="footnote_258-5" id="footnote_258-5"></a>
+ <a href="#fnanchor_258-5">[258-5]</a>
+ Thus the Württemberg law of 1833 prohibits the marriage of those who are
+ under prosecution on account of repeated thefts, fraud, or carrying on the
+ trade of a beggar; also all such as have been criminally punished within
+ the two next preceding years, and all who within the three next preceding
+ years have received alms from the public treasury, except in cases of
+ misfortune, of the causes of which they were innocent. The Bavarian law of
+ April 16, 1868, gives the parish a right of veto. According to the royal
+ Saxon ordinance of 1840, male recipients of alms are permitted to marry
+ only when their marriage makes an important amelioration of their
+ circumstances probable, and does away with the necessity of public
+ assistance in the future.</p>
+
+ <p class="footnote"> <a name="footnote_258-6" id="footnote_258-6"></a>
+ <a href="#fnanchor_258-6">[258-6]</a>
+ During Iceland's middle age, prohibition of marriage for all who did not
+ possess at least from 100 ounces of silver or 600 ells <i>vadhmal</i>.
+ (<i>K. Maurer</i>, Island, 443 seq.) In Bavaria (July 1, 1831), the right
+ of domicile is made to depend on a landownership free of debt, and a
+ <i>steuersimplum</i> of from 1 to 2 florins (in towns more) in country
+ parishes; on the real (reales) right of carrying on a trade, or on a
+ personal trade-concession sufficient for support. A tax of 1 florin in
+ 1852 meant about 1,200 florins worth of property. In other cases it
+ depended on whether the parish recognized the existence "complete and
+ permanent of the means of livelihood." Here good repute and the possession
+ of a considerable savings bank deposit were to be particularly considered.
+ In cases of competition, discharged soldiers who had served out their
+ term, and good servants of 15 years service were to be preferred. In
+ Württemberg (1833) a sufficient guaranty that a person contemplating
+ marriage possessed the means of support was: the personal capacity to
+ exercise a liberal art or to follow a scientific career, to engage in
+ commerce or agriculture, or some branch of industry, or follow a trade,
+ with sufficient income therefrom to support a family; or the possession of
+ a property, according to locality, of 1,000, 800 or 600 florins. The law
+ of May 5, 1852, was more exacting, and required, besides personal
+ competency, evidence that one's calling yielded a sufficient income, as
+ well as of an amount of property free of debt, of the value of from 150 to
+ 200 florins. In Baden (1831) a property considered sufficient to insure
+ the means of livelihood amounted in the four largest cities to 1,000
+ florins, in 10 smaller ones to 600; in the remaining communities to 300
+ florins. In the electorate of Hesse, the amount (1834) was from 150
+ thalers (for small country communities) to 1,000 thalers. (Kassel.) An
+ irreproachable character is required by many laws (in Württemburg, since
+ 1832, the good reputation of both parties), and the community is empowered
+ to dispense with the other material conditions. Long-continued
+ savings-bank deposit speaks well for the parties' competency to support a
+ family, because it bears testimony to an excellent economic
+ disposition.</p>
+
+ <p class="footnote"> <a name="footnote_258-7" id="footnote_258-7"></a>
+ <a href="#fnanchor_258-7">[258-7]</a>
+ Remarkable instance in <i>Rau</i>, Lehrbuch, II, § 15 a., note b.</p>
+
+ <p class="footnote"> <a name="footnote_258-8" id="footnote_258-8"></a>
+ <a href="#fnanchor_258-8">[258-8]</a>
+ In Bavaria, in 1808, the decision reserved to the royal boards of
+ police.</p>
+
+ <p class="footnote"> <a name="footnote_258-9" id="footnote_258-9"></a>
+ <a href="#fnanchor_258-9">[258-9]</a>
+ Those callings in which a certain <i>esprit de corps</i> prevails such as
+ that, for instance, of officials and officers, submit willingly to
+ restrictions on marriage authoritatively imposed. The Catholic clergy
+ submit even to a full prohibition of marriage. Such measures uniformly
+ strengthen the isolation of the class from the nation as a whole. It is
+ well known that, during the middle ages, theological views on the
+ meritoriousness of all self-denial made voluntary celibacy very common.
+ The Franciscan order counted at one time 150,000 monks and 28,000 nuns,
+ the so-called members of the third order, or penitents, not included.
+ (<i>Helyot</i>, Gesch. der Kloster und Ritterorden, V, 33.) The severity
+ of the laws relating to fasting might also, according to <i>Villermé</i>,
+ be regarded as a "preventive check." Compare <i>supra</i>, § 240, note
+ I.</p>
+
+ <p class="footnote"> <a name="footnote_258-10" id="footnote_258-10"></a>
+ <a href="#fnanchor_258-10">[258-10]</a>
+ The Prussian law authorizing parents and guardians to put an interdict on
+ marriages, because of a want of the necessary means, of vicious habits,
+ disease, etc., may constitute a check in very good families and families
+ of the middle class, but scarcely so in proletarian circles.</p>
+
+ <p class="footnote"> <a name="footnote_258-11" id="footnote_258-11"></a>
+ <a href="#fnanchor_258-11">[258-11]</a>
+ Besides Württemberg, Baden also prescribed 25 years; in Saxony and
+ Hessen-Darmstadt, 21 sufficed; in Prussia even 18. <i>Schäffle</i>
+ advocates a minimum age of 25 years for males and 22 years for women (loc.
+ cit.). Similarly, <i>Mohl</i>, loc. cit.</p>
+
+ <p class="footnote"> <a name="footnote_258-12" id="footnote_258-12"></a>
+ <a href="#fnanchor_258-12">[258-12]</a>
+ Why, hitherto, in Sweden, by way of exception, military service promoted
+ early marriage, see <i>Wappäus</i>, Bevölkerungsstatistik, II, 357. In
+ France, on the other hand, the increase of population since 1815 has been
+ almost exactly in the inverse ratio of the strength of the military levy.
+ Acad. des Sc. Morales et Polit., 1867, II, 159.</p>
+
+ <p class="footnote"> <a name="footnote_258-13" id="footnote_258-13"></a>
+ <a href="#fnanchor_258-13">[258-13]</a>
+ <i>Malthus</i>, Principle of Population, 10, ch. 13.</p>
+
+ <p class="footnote"> <a name="footnote_258-14" id="footnote_258-14"></a>
+ <a href="#fnanchor_258-14">[258-14]</a>
+ <i>Malthus</i>, Principle of Population, IV, ch. 4, 5. It is a great error
+ to suppose that the number of immoral acts increases and decreases with
+ the frequency of temptation. In Ireland, farmers very frequently keep
+ their men servants and maid servants even after the latter have married.
+ But the very facility with which a fall is legalized, increases very
+ largely the number of reckless marriages. (<i>Meidinger</i>, Reise, II,
+ 187 seq.) In the country about Göttingen also, where the people marry much
+ earlier on an average than in that about Calenberg, illegitimate births
+ are much more frequent.</p>
+
+ <p class="footnote"> <a name="footnote_258-15" id="footnote_258-15"></a>
+ <a href="#fnanchor_258-15">[258-15]</a>
+ Even no other legal obstacle which could make marriage more difficult
+ occurred to <i>Malthus</i>, except that which consists in the refusal of
+ public assistance after the expiration of a fixed period of time.
+ (Principle of Population, IV, ch. 8; V, ch. 2.)</p>
+
+ <p class="footnote"> <a name="footnote_258-16" id="footnote_258-16"></a>
+ <a href="#fnanchor_258-16">[258-16]</a>
+ See the tables in the Tübinger Zeitschrift, 1868, 624 ff. Thus, formerly,
+ in Rhenish Bavaria, where there was complete liberty allowed in this
+ matter, the poor rates compared with the population, were only 34.6 per
+ cent. of the average in the rest of Bavaria; and the number of
+ illegitimate births was not so unfavorable by one-half. (<i>Rivet</i>, in
+ the Archiv der polit. Oekonomie, N. F., I, 39.) The Bavarian law of the
+ 16th of April, 1868, which provides that the community or parish can
+ object to a person's marriage only on account of unpaid parish taxes or
+ poor rates (art. 36) largely increased the number of marriages and
+ diminished the illegitimate births; in the first year to 22.2 per cent.,
+ in the second to 17, and in 1873 to 13.2 per cent. (Allg. luth
+ Kirchenztg., 12 März, 1875.) According to official statement, this law did
+ more to improve the condition of workmen in the towns than any other
+ cause. Compare <i>Thudichum</i>, Ueber unzulässige Beschränkungen des
+ Rechts der Verehelichung, 1868. Per contra, <i>E. Schübler</i>, Ueber
+ Niederlassung und Verehelichung in den verschiedenen deutschen Staaten,
+ 1855.</p>
+
+ <p class="footnote"> <a name="footnote_258-17" id="footnote_258-17"></a>
+ <a href="#fnanchor_258-17">[258-17]</a>
+ <i>Reinhold</i> has recommended the direct limitation of the procreation
+ of children by the process of <i>infibulation</i> practiced on boys
+ fourteen years of age and continued until they arrive at a marriageable
+ age or are able to support illegitimate children. An<a name=
+ "fnanchor_TN113" id= "fnanchor_TN113"></a><a href= "#footnote_TN113"
+ class= "fnanchor">[TN 113]</a> der Uebervolkerung in Mitteleuropa,<a name=
+ "fnanchor_TN114" id= "fnanchor_TN114"></a><a href= "#footnote_TN114"
+ class= "fnanchor">[TN 114]</a> 1827. Ueber die Population und Industrié,
+ oder Beweis dass die Bevölkerung in hoch kultivieren<a name=
+ "fnanchor_TN115" id= "fnanchor_TN115"></a><a href= "#footnote_TN115"
+ class= "fnanchor">[TN 115]</a> Landern stets den Gewerbfleiss übereile,
+ 1828. Ueber das menschliche Elend, welches durch Missbrauch der Zeugung
+ herbeigeführt wird, 1828. Das Gleichgewicht der Bevölkerung als Grundlage
+ der Wohlfahrt, 1829. The ancients proceeded sometimes in a similar way in
+ the case of slave actors: <i>Juvenal</i>, VI, 73. Compare
+ <i>Winckelmann</i>, Antichi inediti, Tav. 188.</p>
+
+ <p class="footnote"> <a name="footnote_258-18" id="footnote_258-18"></a>
+ <a href="#fnanchor_258-18">[258-18]</a>
+ The obstacles formerly placed in many countries in the way of the marriage
+ of Jews of allowing only the first-born to marry, and this only when a
+ vacancy occurred in the number of families by death (Austria), was not
+ based on a solicitude about population, but on religio-national
+ intolerance, in part also on commercial police grounds.</p>
+
+ <p class="footnote"> <a name="footnote_258-19" id="footnote_258-19"></a>
+ <a href="#fnanchor_258-19">[258-19]</a>
+ <i>Fisher</i>, Gesch. des deutschen Handels (1785 ff.), still considers
+ war as a remedy for over-population, but <i>M. Wirth</i>, Grundzüge der N.
+ Oek., rightly remarks that war destroys not so much children, women and the
+ infirm as the most productive of the male population, and immense amounts
+ of capital.</p>
+
+<p class="p2 center"><a name="S259"></a>SECTION CCLIX.<span
+class='pagenum'>[Pg 362]</span></p>
+
+<p class="center smaller">EFFECTS OF EMIGRATION.</p>
+
+<p>B. It is sufficiently evident that emigration from an over-populated
+country<a name= "fnanchor_259-1" id= "fnanchor_259-1"></a><a href=
+"#footnote_259-1" class="fnanchor">[259-1]</a> may be attended with good
+consequences, especially when it takes place in organized bodies.<a
+name="fnanchor_259-2" id="fnanchor_259-2"></a><a href="#footnote_259-2"
+class="fnanchor">[259-2]</a> There is little danger that one who knows how
+to work and pray will go to the bad in a young agricultural colony. In a
+wilderness which has not yet been cleared, the greater number of
+proletarian vices spontaneously disappear. There is here no opportunity for
+jealousy or theft; little for intemperance, the gaming table,
+licentiousness or quarrelsomeness. Here labor is a necessity, and the
+rewards of industry and saving soon take a palpable shape. As the emigrant,
+in such a situation, can scarcely help marrying, children far from being a
+burthen, soon become companions to their parents in their solitude and,
+later, helpmates in business. The colonist belonging to the lower middle
+class is most certain of improving his condition. It may, indeed, require
+many and toilsome years before he can feel comfortable himself; but his
+children who would probably have led a proletarian life in the mother
+country may calculate with certainty on future well-being. The father's
+small capital which the outlay for education alone would have exhausted at
+home, here becomes the seed of a number of prosperous households.<a
+name="fnanchor_259-3" id="fnanchor_259-3"></a><a href="#footnote_259-3"
+class="fnanchor">[259-3]</a> It is otherwise with the mass of the <span
+class='pagenum'>[Pg 363]</span> people who remain at home. (Compare §
+241.)<a name="fnanchor_259-4" id="fnanchor_259-4"></a><a href=
+"#footnote_259-4" class="fnanchor">[259-4]</a> It is a matter of much more
+difficulty than is generally supposed by those who have not made a study of
+the matter, that the yearly emigration from countries like Germany should
+counterbalance the excess of births over deaths.<a name="fnanchor_259-5"
+id="fnanchor_259-5"></a><a href="#footnote_259-5" class=
+"fnanchor">[259-5]</a> It is not to <span class='pagenum'>[Pg 364]</span>
+be supposed that men who are really useless at home should be of any
+service in the colonies. How violently have not <span class='pagenum'>[Pg
+365]</span> English colonies opposed the advent of settlers from the
+poorhouses of the mother country. The classes which are readiest to
+emigrate: idlers, fickle characters, fathers of families with altogether
+too many children, artisans who by a revolution in industry have lost the
+means of making a livelihood, are precisely those who find it most
+difficult to obtain employment on the other side of the water.<a
+name="fnanchor_259-6" id="fnanchor_259-6"></a><a href="#footnote_259-6"
+class="fnanchor">[259-6]</a> Most colonies refuse to receive persons over
+forty years of age at their own expense. But a young man intellectually and
+physically able to work, can always make his way even in the old world;
+only the weaker <span class='pagenum'>[Pg 366]</span> succumb under the
+pressure of over-population. Lastly, it should be considered what an amount
+of capital is required for purposes of emigration and settlement. If
+emigrants, on the average, take more capital with them than is estimated to
+be the <i>per capita</i> amount of capital possessed by those remaining at
+home,<a name="fnanchor_259-7" id="fnanchor_259-7"></a><a href=
+"#footnote_259-7" class="fnanchor">[259-7]</a> the consequence would be
+that, as a result of this very successful emigration, the ratio of
+consumers to the amount of capital in the country would become more and
+more unfavorable. The emigrating portion of the country might experience
+the advantage of this, but the great mass of the population remaining at
+home would become poorer in capital and in vigorous men,<a
+name="fnanchor_259-8" id="fnanchor_259-8"></a><a href="#footnote_259-8"
+class="fnanchor">[259-8]</a> and richer in the comparatively <span
+class='pagenum'>[Pg 367]</span> needy. The comfortless contrast between
+colossal wealth and beggarly want could only be thereby increased, since it
+is almost exclusively the lower middle class who emigrate to agricultural
+colonies. The over-rich, as a rule, will not, and proletarians can not, go
+thither.<a name= "fnanchor_259-9" id= "fnanchor_259-9"></a><a href=
+"#footnote_259-9" class="fnanchor">[259-9]</a> <a name= "fnanchor_259-10"
+id="fnanchor_259-10"></a> <a href="#footnote_259-10" class=
+"fnanchor">[259-10]</a></p>
+
+ <p class="footnote"> <a name="footnote_259-1" id="footnote_259-1"></a>
+ <a href="#fnanchor_259-1">[259-1]</a>
+ Compare <i>R. Mohl</i>, in the Tübinger Zeitschrift für
+ Staatswissenschaft, 1847, 320 ff.; <i>Roscher</i>, Nationalökonomische
+ Ansichten über die Deutsche Auswanderung in the Deutschen
+ Viertejahrsschrift, 1848, No. 43, 96 ff., the same author's Kolonien,
+ Kolonialpolitik und Auswanderung, 2 Aufl., 1856, 342 ff.; <i>J.
+ Fröbel</i>, Die Deutsche Auswanderung und ihre Kulturhistorische
+ Bedeutung, 1858.</p>
+
+ <p class="footnote"> <a name="footnote_259-2" id="footnote_259-2"></a>
+ <a href="#fnanchor_259-2">[259-2]</a>
+ Unfortunately, emigration in groups has recently become very rare,
+ whereas, during the middle ages, it took place preponderantly, first in
+ armies and then in communities.</p>
+
+ <p class="footnote"> <a name="footnote_259-3" id="footnote_259-3"></a>
+ <a href="#fnanchor_259-3">[259-3]</a>
+ According to parliamentary investigations, the Irish laborer in Australia,
+ Canada, etc., improves in a few years to such an extent that he can
+ scarcely be distinguished from the Anglo-Saxon. He becomes industrious,
+ self-reliant etc. (Edinb. Rev., 1950, 25.) In North America, however, the
+ Irish seldom become really well off, or occupy a position of consequence
+ in society. (<i>Görtz</i>, Reise, 88.)</p>
+
+ <p class="footnote"> <a name="footnote_259-4" id="footnote_259-4"></a>
+ <a href="#fnanchor_259-4">[259-4]</a>
+ <i>E. G. Wakefield</i>, in other respects so intelligent a writer on the
+ theory of colonization, is of opinion that every nation might, by giving a
+ proper direction to emigration, establish such a density of population as
+ it desired. Thus, for instance, if there were 10,000 marriages contracted
+ every year in a country, and it was provided that each of these 10,000
+ couples should be sent to some colony immediately after marriage, the
+ whole mother country would become extinct in from 60 to 70 years. This
+ extreme is of course not desired by any one; but the way to be followed in
+ order to attain a desirable limit is hereby pointed out. That emigration
+ has in so few instances checked the advance of population, Wakefield
+ accounts for by the fact that the means furnished to emigration have to a
+ certain extent been wasted, and that old men, children, etc., who either
+ had no influence on population as yet, or could have no more in future,
+ constituted a large proportion of those who left the country. (England and
+ America.)</p>
+
+ <p class="footnote">Evidently an important consideration is here omitted,
+ viz.: that there is no such a thing as a normal year of marriages, etc.
+ If, for instance, all males were to wait until their 30th year, and all
+ females until their 20th, to enter the married state, and that the
+ government were to send all competent persons as soon as they had reached
+ this age to America, what would be the consequence? Numberless situations
+ affording the means of supporting a family would be vacant, and a number
+ of young men of 29 and of young women of 19 would be induced to marry,
+ etc. The number of children to a marriage in England in 1838-44 was 4.13;
+ 1845-49, 3.96; 1850-54, 3.26; 1855-59, 4.15. (Journal des. Econ., Oct.,
+ 1861.)</p>
+
+ <p class="footnote"> <a name="footnote_259-5" id="footnote_259-5"></a>
+ <a href="#fnanchor_259-5">[259-5]</a>
+ <i>Benjamin Franklin</i>, in 1751, estimated the aggregate number of
+ English inhabitants in the North American colonies at 1,000,000, of whom
+ only 80,000 had immigrated into the country. Hence, from 1790 to 1840, the
+ United States, the promised land of European emigrants, received only
+ about 1,500,000 emigrants. From 1820 to 1859, the number (according to
+ <i>Bromwell</i> and <i>Hübner</i>) was 4,509,612; according to a report of
+ the New York Chamber of Commerce (1874), 9,054,132 since 1824. An annual
+ immigration of 100,000 was reached for the first time in 1842. According
+ to the census of 1870, there were in the United States 5,567,229 persons
+ born in foreign countries, of which number 1,690,410 were born in Germany,
+ 1,855,827 in Ireland, and 5,550,904 in England. The aggregate emigration
+ from the British empire, which unquestionably possesses most colonies and
+ the largest marine, was, on an average, between 1825 and 1835, only about
+ 55,000; 1836 to 1845, over 80,000; in 1845 alone, over 93,000, while the
+ yearly excess of births over deaths between 1841 and 1848, according to
+ <i>Porter</i>, was in England and Wales alone, on an average, 169,000.
+ During the succeeding years emigration received an extraordinary stimulus
+ (which changed the proportion) in the influence of the discovery of the
+ Californian and Australian mines, and in the Irish famine. Hence the
+ emigration was, at least,</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="British emigration">
+
+<tr><td class="left"><i><span class="hidenum">18</span>in</i></td><td class="center"><i>Persons.</i></td></tr>
+<tr><td class="left">1847,</td><td class="right">258,000</td></tr>
+<tr><td class="left">1848,</td><td class="right">248,000</td></tr>
+<tr><td class="left">1849,</td><td class="right">299,000</td></tr>
+<tr><td class="left">1850,</td><td class="right">280,000</td></tr>
+<tr><td class="left">1852, (maxim.)</td><td class="right">368,000</td></tr>
+<tr><td class="left">1853,</td><td class="right">329,000</td></tr>
+<tr><td class="left">1855,</td><td class="right">176,000</td></tr>
+<tr><td class="left">1857,</td><td class="right">212,000</td></tr>
+<tr><td class="left">1858-60, (average)</td><td class="right">96,000</td></tr>
+<tr><td class="left">1862,</td><td class="right">121,000</td></tr>
+<tr><td class="left">1863,</td><td class="right">223,000</td></tr>
+<tr><td class="left">1865,</td><td class="right">181,000</td></tr>
+<tr><td class="left">1867,</td><td class="right">105,161</td></tr>
+<tr><td class="left">1870,</td><td class="right">202,511</td></tr>
+<tr><td class="left">1871,</td><td class="right">174,930</td></tr>
+</table></div>
+
+ <p class="footnote">while the excess of births over deaths (in Great
+ Britain alone) amounted, in 1856, to 309,000. Between 1815 and 1870, there
+ emigrated from the United Kingdom to the United States, 4,472,672 persons;
+ to the British North American Colonies, 1,391,771; to Australia, 988,423;
+ to other points, 160,771; an aggregate of 7,013,637. (Statist. Journal,
+ 1872, 115.) On the other hand, between 1861 and 1871, 543,015 persons
+ either returned or immigrated to the United Kingdom. It is estimated,
+ (according to <i>Hübner's</i> Jahrb. der Volkswirthschaft und Statistik,
+ 263 ff.; VIII, 222, and the Rudolst. Auswandererzeitung) that in no year
+ before 1844 were there more than 33,000 emigrants from Germany. On the
+ other hand,</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="British emigration">
+
+<tr><td class="left"><i><span class="hidenum">18</span>in</i></td>
+<td class="center"><i>At least.</i></td></tr>
+
+<tr><td class="left">1844,</td><td class="right">43,000</td></tr>
+<tr><td class="left">1845,</td><td class="right">67,000</td></tr>
+<tr><td class="left">1846,</td><td class="right">94,000</td></tr>
+<tr><td class="left">1847,</td><td class="right">109,000</td></tr>
+<tr><td class="left">1848,</td><td class="right">81,000</td></tr>
+<tr><td class="left">1849,</td><td class="right">89,000</td></tr>
+<tr><td class="left">1850,</td><td class="right">82,000</td></tr>
+<tr><td class="left">1851,</td><td class="right">112,000</td></tr>
+<tr><td class="left">1852,</td><td class="right">162,000</td></tr>
+<tr><td class="left">1853,</td><td class="right">156,000</td></tr>
+<tr><td class="left">1854, (maxim.)</td><td class="right">250,000</td>
+</tr>
+<tr><td class="left">1855.</td><td class="right">81,000</td></tr>
+<tr><td class="left">1856.</td><td class="right">98,000</td></tr>
+<tr><td class="left">1857,</td><td class="right">115,000</td></tr>
+<tr><td class="left">1858-61, (average)</td><td class="right">4,620</td>
+</tr>
+<tr><td class="left">1866</td><td class="right">137,000</td></tr>
+<tr><td class="left">1867,</td><td class="right">151,000</td></tr>
+<tr><td class="left"><br />By Hamburg and Bremen alone&mdash;</td></tr>
+<tr><td class="left">1867-71, (average)</td><td class="right">33,355 &amp;
+48,296</td></tr>
+<tr><td class="left">1872,</td><td class="right">57,621 &amp; 66,919</td>
+</tr>
+<tr><td class="left">1873,</td><td class="right">51,432 &amp; 48,608</td>
+</tr>
+<tr><td class="left">1874,</td><td class="right">24,093 &amp; 17,913</td>
+</tr>
+</table></div>
+
+ <p class="footnote">while the natural increase of population in Prussia
+ alone (1843-55) amounted to almost 150,000 per annum; in the kingdom of
+ Saxony (1834-49), to over 18,000; in Austro-Germany and the five German
+ kingdoms together, 305,000. (<i>Wappäus</i>, Bevölkerungsstatistik, I,
+ 133.) In New York alone, in 1852, 118,600 Germans arrived; in 1853,
+ 119,500; in 1854, over 178,000. That, at present, emigration is, on the
+ whole, so much more frequent than formerly, is accounted for by the
+ largely improved means of communication. However, it was estimated a
+ century ago, that Europe sent at least 100,000 persons per annum to the
+ East and West Indies. Between 1700 and 1719, an aggregate of 105,972
+ persons emigrated to the Dutch East Indies; between 1747 and 1766,
+ 162,598. (<i>Saalfeld</i>, Gesch. des Holländ. Ostindiens, II, 189.) It
+ should not be ignored, however, that the readiness to forsake the
+ fatherland, which only a short time ago was so usual in Germany (in
+ England, it prevails chiefly among the Irish), justified the greatest
+ solicitude for the roots of German national life. How little Germany
+ really suffers from over-population, is shown especially by the
+ circumstance that, for instance, in Prussia, it is precisely the most
+ densely populated districts to which immigration is largest. Compare <i>v.
+ Viebahn</i>, Zollverein. Statist, II, 242.</p>
+
+ <p class="footnote">According to <i>C. Negri</i>, about 40,000 Italians
+ emigrate every year at present; and it is said that there are, in Turkey,
+ Egypt and Tunis, 70,000; in Peru, 14,000, and in Buenos Ayres, 84,000
+ Italians living. (I, Jahresbericht der Hamburg, geogr. Gesellsch., 1874.)
+ In other Romanic and Slavic<a name= "fnanchor_TN116" id=
+ "fnanchor_TN116"></a><a href= "#footnote_TN116" class= "fnanchor">[TN
+ 116]</a> countries emigration is as yet insignificant. On the other hand,
+ there were, in 1870, 214,574 native Scandinavians in the United
+ States.</p>
+
+ <p class="footnote"> <a name="footnote_259-6" id="footnote_259-6"></a>
+ <a href="#fnanchor_259-6">[259-6]</a>
+ While the most active demand for labor, for instance, existed in Australia
+ generally, three government ships carrying emigrants arrived: one with
+ English agricultural laborers, the second with former factory hands, the
+ third with Irish. The agricultural laborers found places very rapidly a
+ few days after their arrival; the factory hands did only tolerably well,
+ while of the poor Irish not one-half could find anything to do, and became
+ a burthen on the benevolence of the public. (<i>Merivale</i>, Lectures on
+ Colonization and Colonies, II, 30 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_259-7" id="footnote_259-7"></a>
+ <a href="#fnanchor_259-7">[259-7]</a>
+ It is estimated that the first 21,200 settlers of New England brought
+ about $1,000,000 with them. (<i>Bancroft</i>, Hist. of the United States.)
+ The 50,000 emigrants who came to Quebec in 1832 were estimated to be worth
+ $3,000,000. It is thought that German emigrants to America, bring with
+ them, on an average, 280 thalers, to which must be added 40 thalers
+ passage money. This seems very high, while German estimates are generally
+ too low, because no emigrant has any interest to overestimate his
+ property, but frequently to underestimate it. Thus, for instance, in
+ 1848-49, 8,780 persons emigrated from Prussia with 1,713,370 thalers of
+ property, i. e., 195 thalers each. (Amtl. Tabellen, f., 1849, I, 290.) It
+ is said that between 1844 and 1851, 45,300 persons emigrated from Bavaria
+ with governmental consent, and that they carried with them property to the
+ amount of 19,233,000 florins; that is, 424 florins each. (Beiträge zur
+ Statistik des Kgr. Bayern, III, 322 seq.) Here the average amount of means
+ carried away by emigrants seems to decrease; a sign that the mass of those
+ emigrating come from successively lower strata of the population.
+ (<i>Hermann</i>, Bewegung der Bevölk., 26 seq.)</p>
+
+ <p class="footnote">A still smaller amount of capital would suffice for
+ the purpose of emigration itself. Persons who settled in Canada (1823)
+ cost the English nation £22 per capita, which amount provided them with
+ cows, seeds, agricultural implements, help in building, and food for
+ twelve months. According to the Edinburg Rev., Dec., 1826, only £15, 4s.
+ were necessary for the same purpose. If it be borne in mind that many of
+ these settlers afterwards caused five times as many relatives to come over
+ at their own expense, the necessary outlay per capita would seem very
+ small indeed; frequently not more than one year's maintenance in the
+ poorhouse would have cost. Almost £1,000,000 are sent every year from the
+ United States through banks and emigration bureaus, by emigrants, to the
+ United Kingdom, to bring over their relatives. (Statist. Journal, 1872,
+ 386.)</p>
+
+ <p class="footnote"> <a name="footnote_259-8" id="footnote_259-8"></a>
+ <a href="#fnanchor_259-8">[259-8]</a>
+ It is said that in Mecklenburg agricultural labor has much deteriorated
+ because the strong men emigrate and because the old and children remain at
+ home. (<i>Bassewitz-Schumacher</i>, Comm. Bericht über die Verhältnisse
+ der ländl. Arbeiterklassen, 1873.)</p>
+
+ <p class="footnote"> <a name="footnote_259-9" id="footnote_259-9"></a>
+ <a href="#fnanchor_259-9">[259-9]</a>
+ <i>J. S. Mill</i>, indeed, thinks that even where there is a larger
+ emigration of capital than of men, the combined pressure which both exert
+ on the natural forces of the country emigrated from must become less.
+ (Principles, IV, ch. 5, 1.) Compare <i>Hermann</i>, loc. cit. 28 ff.
+ <i>Hermann</i> also shows very clearly how emigrants to America would
+ frequently like to return; but the expense of returning deters them from
+ the undertaking, and they manage to get along by great effort, which,
+ however, would have afforded them a livelihood if they had remained at
+ home. Staatsw. Unters. II, Aufl. 480.</p>
+
+ <p class="footnote"> <a name="footnote_259-10" id="footnote_259-10"></a>
+ <a href="#fnanchor_259-10">[259-10]</a>
+ Against real over-population, the emigration of women would be much more
+ effective than that of men; and yet the emigration of the latter occurs
+ much less frequently in large numbers. Thus, between 1853 and 1858, 3,694
+ males emigrated from Saxony and only 2,609 females. Between 1866 and 1874,
+ there were 1,754,231 male immigrants to the United States, and only
+ 1,147,446 females. According to <i>Rümelin</i> (Allg. Ztg., December,
+ 1865), the large emigration from Württemberg produced by the years of
+ scarcity&mdash;1850 ff.&mdash;left such a preponderance of women that 1/6
+ of all the young women who have reached a marriageable age at present,
+ would remain unmarried, even if all the marriageable young men were to
+ engage in matrimony. Thus negative emigration does very little to cure the
+ social disease of involuntary celibacy.</p>
+
+<p class="p2 center"><a name="S260"></a>SECTION CCLX.</p>
+
+<p class="center smaller">COLONIST EMIGRATION.</p>
+
+<p>All these dangers disappear when the portion of the nation which has
+emigrated continues economically connected with the body of the nation
+remaining at home. (Colonizing emigration.) Here emigration not only
+provides "elbow room" in the mother country, but there arises at the same
+time an increased demand for manufactured articles, an increased supply of
+raw material, by means of which an absolute growth <span class=
+'pagenum'>[Pg 368]</span> of population is made possible.<a name=
+"fnanchor_260-1" id= "fnanchor_260-1"></a><a href= "#footnote_260-1"
+class="fnanchor">[260-1]</a> England has hitherto enjoyed these advantages
+to the fullest extent, Germany scarcely at all. German emigrants to Russia,
+America, Australia, or Algiers, were, together with all they have and are,
+for the most part lost to their fatherland. They become the customers and
+suppliers of foreign countries, and frequently enough the competitors and
+even enemies of Germany.<a name= "fnanchor_260-2" id=
+"fnanchor_260-2"></a><a href= "#footnote_260-2" class=
+"fnanchor">[260-2]</a> <a name= "fnanchor_260-3" id="fnanchor_260-3"></a><a
+href="#footnote_260-3" class= "fnanchor">[260-3]</a></p>
+
+<p><span class='pagenum'>[Pg 369]</span>It might be very different if the
+stream of German emigration was directed towards German colonies for
+instance, as happened in later medieval times, towards the fertile but
+thinly populated parts of Hungary, towards the provinces of Austria and
+Prussia; perhaps, as List wished, towards those parts of Turkey which, God
+willing, shall yet constitute the inheritance of the German people. Thus,
+through the instrumentality of emigration, might a new Germany arise, which
+would directly or indirectly and necessarily ally itself to the old,
+politically, and at the same time constitute the surest bulwark against the
+danger from Slavic power.</p>
+
+<p>Politico-economically, this country might be utilized by Germany as the
+United States uses the Mississippi valley and the Far West, especially as
+concerns the exclusiveness of the use. It is true, that emigrants could be
+invited to these quarters in good conscience only when the soil had been
+prepared for them. They should find there, on their arrival, complete legal
+security, especially for the landed property to be acquired by them;
+likewise, at least, full personal, religious, and also commercial
+freedom.<a name= "fnanchor_260-4" id= "fnanchor_260-4"></a><a
+href="#footnote_260-4" class="fnanchor">[260-4]</a></p>
+
+<p>It may be asked, whether there are places in the other quarters of the
+world adapted to German colonization in the higher sense of the word. These
+should of course be countries adapted to agriculture as practiced by the
+Germans,<a name= "fnanchor_260-5" id= "fnanchor_260-5"></a><a
+href="#footnote_260-5" class= "fnanchor">[260-5]</a> with an easily
+accessible coast and provided in the interior with navigable streams. Here
+the Germans should be able not only to live together in large numbers, but
+the rest of the population should be inferior to them in political training
+and in national feeling. Otherwise, there would in time be <span
+class='pagenum'>[Pg 370]</span> danger of their losing the German character
+and feeling.<a name= "fnanchor_260-6" id= "fnanchor_260-6"></a><a
+href="#footnote_260-6" class= "fnanchor">[260-6]</a> The difficulty of
+establishing German colonies in the southern temperate parts of Chili and
+Brazil would be aggravated by the very same causes which prevented the
+creation of a German navy for centuries; and they would almost certainly
+have to calculate on the jealousy of all other colonial powers and of the
+United States.<a name="fnanchor_260-7" id= "fnanchor_260-7"></a><a
+href="#footnote_260-7" class="fnanchor">[260-7]</a> We should not forget
+that from Raleigh's time to the present, almost every speculation having
+for its object the founding of a colony, whether originating with
+individual capitalists or with joint-stock companies, has been, considered
+from a mercantile point of view, a failure. The fruits of new colonization
+are generally reaped in the succeeding generation; and such delay is
+scarcely in harmony with the ideas of our own times. Almost every
+settlement has had its critical period when the settlers almost despaired.
+This produced less harm in the 17th century; for they were for the most
+part compelled to persevere. In our day, they would probably disband and go
+in search of an easier life in colonies already existing. And yet, Germany
+must make haste if it would not soon see the last appropriate locality
+occupied by other and more resolute nations.<a name="fnanchor_260-8" id=
+"fnanchor_260-8"></a><a href= "#footnote_260-8" class=
+"fnanchor">[260-8]</a> <a name="fnanchor_260-9" id= "fnanchor_260-9"></a>
+<a href="#footnote_260-9" class= "fnanchor">[260-9]</a></p>
+
+ <p class="footnote"> <a name="footnote_260-1" id="footnote_260-1"></a>
+ <a href="#fnanchor_260-1">[260-1]</a>
+ As <i>Torrens</i> shows there is no kind of trade that so much promotes
+ production, or which is so capable of growth as the exchange of the means
+ of subsistence and raw materials against manufactured articles. The
+ Budget: On Commercial and Colonial Policy, 1841 ff.</p>
+
+ <p class="footnote"> <a name="footnote_260-2" id="footnote_260-2"></a>
+ <a href="#fnanchor_260-2">[260-2]</a>
+ Care should be taken not to allow one's self to be misled here by relative
+ numbers. In the United States, the amount of imports was, from<span
+ style="white-space:nowrap;">&mdash;</span></p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="US imports">
+
+<tr><td></td><td class="center"><i>The British Empire.</i></td>
+<td class="center"><i>France.</i></td><td class="center"><i>Germany
+without<br />Austria.</i></td></tr>
+
+<tr><td class="left">1840-41,</td><td class="right">$51,000,000</td>
+<td class="right">$24,000,000</td><td class="right">$2,450,000</td></tr>
+
+<tr><td class="left">1849-50,</td><td class="right">85,000,000</td>
+<td class="right">27,600,000</td><td class="right">8,780,000</td></tr>
+
+<tr><td class="left">1859-60,</td><td class="right">138,600,000</td>
+<td class="right">43,200,000</td><td class="right">18,500,000</td></tr>
+
+</table></div>
+
+ <p class="footnote">Hence, absolutely, the German exports increased in 19
+ years only about $16,000,000; the French (without any emigration), over
+ $19,000,000; the English, more than five times the German. Of the 30,633
+ emigrants who sailed from Bremen in 1874, only 72 did not go to the United
+ States. (D. Ausw. Ztg., 5 Jul., 1875.) The total exports of the United
+ Kingdom to its colonies amounted, 1840-44, to an average value of
+ £7,833,000; 1865-69, to £27,146,000; while those to foreign countries
+ amounted, during the same periods of time, to only from £28,871,000 to
+ £93,558,000. English colonial trade amounted, in 1866, to £6 2s. per
+ capita of the colonial population; the trade with the East Indies, to only
+ 9s. 7d. per capita of the East Indian population. (Statist. Journal, 1872,
+ 123 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_260-3" id="footnote_260-3"></a>
+ <a href="#fnanchor_260-3">[260-3]</a>
+ There has hitherto been little to rejoice over in the condition of German
+ emigrants. The greater number of them had received so little education
+ that they were by no means in a way to oppose the weapons of attack of
+ Anglo-Americans. The glorious literature of their old home scarcely
+ existed for them. Almost the only national peculiarity which they held to
+ with any tenacity was the disposition to a want of union among themselves.
+ Hence they were necessarily de-Germanized in a few generations, after a
+ toilsome and quarrelsome period of transition. How seldom, even in Ohio,
+ did German names occur in the list of public officials, while in New York
+ the number of German names on the poor list is very considerable. The
+ situation, however, seems to have improved in modern times, and the
+ national coherency and political power of the mother country have gone
+ hand in hand with the revival of attachment on the part of the emigrants
+ to the land of their nativity. How beautifully was this attachment
+ manifested during the Franco-Prussian war in 1870-71!</p>
+
+ <p class="footnote"> <a name="footnote_260-4" id="footnote_260-4"></a>
+ <a href="#fnanchor_260-4">[260-4]</a>
+ Compare <i>Fr. List</i>, in the D. Vierteljahrsschrift, 1842, No. IV.
+ <i>Dieterici</i>, über Aus- und Einwanderungen, 1847, 18.</p>
+
+ <p class="footnote"> <a name="footnote_260-5" id="footnote_260-5"></a>
+ <a href="#fnanchor_260-5">[260-5]</a>
+ No Mosquito-coast!</p>
+
+ <p class="footnote"> <a name="footnote_260-6" id="footnote_260-6"></a>
+ <a href="#fnanchor_260-6">[260-6]</a>
+ How tenaciously have the Germans held to their nationality in Transylvania
+ and the Baltic provinces, and how rapidly they lost it in
+ Pennsylvania!</p>
+
+ <p class="footnote"> <a name="footnote_260-7" id="footnote_260-7"></a>
+ <a href="#fnanchor_260-7">[260-7]</a>
+ On emigration to Brazil, see <i>v. Tschudi's</i> report of Oct. 6 to the
+ Swiss parliament, 1860.</p>
+
+ <p class="footnote"> <a name="footnote_260-8" id="footnote_260-8"></a>
+ <a href="#fnanchor_260-8">[260-8]</a>
+ Think only of the project of the Belgian East Indian Company, which
+ Austria could not carry out at the beginning of the preceding century.
+ Proposition by <i>Fröbel</i> (loc. cit., 87 ff.) that England and Prussia
+ should together found a German colony in the valley of the La Plata, to
+ which <i>Wappäus</i> rightly objects, that there are few places there in
+ which peasant emigrants would like to acquire land. (Mittel- und
+ Südamerika, 1866, 1027.)</p>
+
+ <p class="footnote"> <a name="footnote_260-9" id="footnote_260-9"></a>
+ <a href="#fnanchor_260-9">[260-9]</a>
+ Compare <i>Wappäus</i>, Deutsche Auswanderung und Kolonisation, 1846.</p>
+
+<p class="p2 center"><a name="S261"></a>SECTION CCLXI.<span
+class='pagenum'>[Pg 371]</span></p>
+
+<p class="center smaller">STATE AID TO EMIGRANTS.</p>
+
+<p>The inquiry, What can the state reasonably do for emigration, must, of
+course, receive a very different answer according as there is question of
+merely negative (§ 259) or colonizing emigration (§ 262). To give the
+latter a proper impulse requires so great an outlay of capital and labor
+that it can be made only by the state; and in Germany, on a large scale,
+only by a union of several states. We must not here deceive ourselves.
+Emigrants will go uniformly where they have the nearest prospect of a
+comfortable future. Whether in emigrating they shall continue their
+connection with their old home, or whether their children shall be
+completely denationalized is a matter with which very few emigrants concern
+themselves; and considering the amount of education they generally possess,
+this need excite no surprise. Hence, if Germany would unite its departing
+children in a colony permanently German, and therefore new,<a name=
+"fnanchor_261-1" id="fnanchor_261-1"></a><a href="#footnote_261-1" class=
+"fnanchor">[261-1]</a> it would be necessary for it to offer them, at its
+own expense, at least the same advantages which they would find in older
+and fully established colonies. He who would reap should not endeavor to
+evade the sacrifice incident to the sowing.<a name="fnanchor_261-2" id=
+"fnanchor_261-2"></a><a href="#footnote_261-2" class="fnanchor">[261-2]</a>
+Even great sacrifices in this direction would certainly be richly rewarded
+if properly made. Probably the outlay would never be directly returned to
+the national treasury; but there is all the more reason, on this account,
+that there should be an indirect return by the increase of duties and other
+indirect taxes.</p>
+
+<p><span class='pagenum'>[Pg 372]</span>On the other hand, the costly
+assistance of the state in the case of merely negative emigration would, as
+a rule, be folly. Who would compel the children of the great national
+family, who necessarily or voluntarily remain faithful to the paternal
+roof, to pay tribute to those who turn their backs on the old home for
+ever? The wealthy especially who remain in the country have to put up with
+the disadvantage of paying higher wages for labor.</p>
+
+<p>Simple humanity requires that the state should not be blind to the
+movement of emigration, nor abandon it to all the risks of improvident
+liberty. Hence it should endeavor to remove the ignorance prevailing on
+questions of emigration. It should require personal and other guaranties
+that emigration agents are not simply dealers in men, and that the
+contracts made with ship-owners by emigrants are really performed. It
+should exercise a strict superintendence over the mode of transportation of
+emigrants, and see to it that its consuls accredited to America, etc.
+assist them by word and deed.<a name= "fnanchor_261-3" id=
+"fnanchor_261-3"></a><a href= "#footnote_261-3" class=
+"fnanchor">[261-3]</a> The legislation of Bremen is a model in this
+respect, and has contributed largely to make that port a principal outlet
+for German emigration.<a name="fnanchor_261-4" id="fnanchor_261-4"></a><a
+href="#footnote_261-4" class="fnanchor">[261-4]</a> The provisions of the
+laws of October <span class='pagenum'>[Pg 373]</span> 1, 1832, of July 14,
+1854, of July 9, 1866, etc., embrace among others the following: Only a
+citizen of Bremen, of good repute, and who has given security to the amount
+of five thousand thalers, shall be entitled to receive and contract with
+emigrants for passage; to each passenger shall be allotted a space of at
+least twelve square feet of surface and six feet high; provision shall be
+made for the longest possible time of passage; for instance, for thirteen
+weeks for a voyage northerly from the equator. At the same time, the
+ship-owner is required to give security that in case of accident to the
+vessel, disabling it in such a way as to unfit it to continue the journey,
+he shall return the fare of all passengers saved, and pay them an
+additional sum of from twenty to forty thalers, according to the length of
+the passage, to cover the cost of salvage, to support themselves for the
+time being, and enable them to continue their journey. The entire matter is
+controlled by a rigid system of ship-investigation, and is under the
+superintendence of a board of officers, made up of senators and members of
+the chamber of commerce.<a name="fnanchor_261-5" id="fnanchor_261-5"></a><a
+href= "#footnote_261-5" class="fnanchor">[261-5]</a> Among English
+provisions<a name= "fnanchor_261-6" id="fnanchor_261-6"></a><a
+href="#footnote_261-6" class= "fnanchor">[261-6]</a> particularly <span
+class='pagenum'>[Pg 374]</span> worthy of imitation is that which requires
+the government agents in Canada, etc. to furnish information gratis to
+emigrants. But to keep their clients from the practice of idling about, so
+ruinous to themselves, the agents refuse aid to all emigrants who, without
+sufficient reason, remain over eight days in the harbor.</p>
+
+ <p class="footnote"> <a name="footnote_261-1" id="footnote_261-1"></a>
+ <a href="#fnanchor_261-1">[261-1]</a>
+ Much might be gained if German emigrants to the United States would
+ concentrate themselves in one state, and thus soon make it a German state.
+ For many reasons Wisconsin is best adapted to such a purpose.</p>
+
+ <p class="footnote"> <a name="footnote_261-2" id="footnote_261-2"></a>
+ <a href="#fnanchor_261-2">[261-2]</a>
+ Provision made to put the colonists in possession of lands well explored
+ and surveyed, to have the preliminary labor performed by persons already
+ acclimated&mdash;labor which is the most injurious to health, the clearing
+ of the land, the construction of buildings&mdash;purchasing the
+ agricultural implements at wholesale, etc.</p>
+
+ <p class="footnote"> <a name="footnote_261-3" id="footnote_261-3"></a>
+ <a href="#fnanchor_261-3">[261-3]</a>
+ <i>v. Gessler</i> (Tübinger Zeitschr., 1862, 398 ff.), recommends the
+ establishment of an "asylum" in the neighborhood of the locality where the
+ emigrants are likely to settle. In this asylum they might, during the time
+ immediately following their arrival, find shelter, food, medicines, etc.,
+ and all the implements necessary to a settler, at cost. The institution
+ might be established either by the home government, by a humanitarian
+ emigration society, or by a land company in the colony itself.</p>
+
+ <p class="footnote"> <a name="footnote_261-4" id="footnote_261-4"></a>
+ <a href="#fnanchor_261-4">[261-4]</a>
+ There passed</p>
+
+<div> <table class="fn" border="0" cellpadding="5"
+summary="German emigration">
+
+<tr><td></td><td class="center"><i>In 1854.</i></td><td class="center">
+<i>In 1867.</i></td></tr>
+
+<tr><td></td><td class="center" colspan="2"><i>number of emigrants.</i>
+</td></tr>
+
+<tr><td class="left">Through Bremen,</td><td class="right">76,875&nbsp;
+</td><td class="right">73,971&nbsp;</td></tr>
+
+<tr><td class="left">Through Hamburg,</td><td class="right">50,819&nbsp;</td>
+<td class="right">42,845&nbsp;</td></tr>
+
+<tr><td class="left">(Of these directly only</td><td class="right">32,310)
+</td>
+<td class="right">(38,170)</td></tr>
+
+<tr><td class="left">Through Havre,</td><td class="right">95,849&nbsp;</td>
+<td class="right">22,753&nbsp;</td></tr>
+
+<tr><td class="left">Through Antwerp,</td><td class="right">25,843&nbsp;</td>
+<td class="right">12,086&nbsp;</td></tr>
+
+<tr><td class="left">Through other ports,</td><td class="right">2,500&nbsp;
+</td></tr>
+
+</table></div>
+
+ <p class="footnote">The trade of Bremen has, as the result of this
+ transportation of emigrants, grown just as that of the Italian sea coast
+ cities by the transportation of the crusaders in the Middle Ages. Here, as
+ in so many other cases, genuine philanthropy, in the long run, moves
+ nearly parallel with real economic advantage. And in fact, the Statuta
+ civitatis Messiliæ of 1228 (IV, 24 seq., 28, 30) contain provisions in
+ relation to the crusaders which forcibly remind one of the modern Bremen
+ laws. Similarly in Venice: Compare <i>Depping</i>, Histoire du Commerce
+ entre le Levant et l'Europe, 284; II, 313 seq.</p>
+
+ <p class="footnote"> <a name="footnote_261-5" id="footnote_261-5"></a>
+ <a href="#fnanchor_261-5">[261-5]</a>
+ Similar provisions in Hamburg, June 3, 1850, revised February 26, 1855; in
+ France, January 15, 1855; in the United States of America, March 2, 1855.
+ Compare <i>Hübner</i>, Statistisches Jahrbuch, 1856, 289 ff. However,
+ there were serious complaints, a short time since, concerning German
+ emigrant transportation, especially of the treatment of women:
+ Novara-Reise, III, 49 ff. Ausland, 1863, No. 8. One of the principal wants
+ is that emigration agents should be held responsible for detaining their
+ clients a long time and at a heavy expense, in places of embarkation.</p>
+
+ <p class="footnote"> <a name="footnote_261-6" id="footnote_261-6"></a>
+ <a href="#fnanchor_261-6">[261-6]</a>
+ Compare <i>McCulloch</i>, Commercial Dictionary, v. Colonies, 9 George,
+ IV., ch. 21. The law of June 30, 1852, carries solicitude for the lot of
+ emigrants very far. It embraces 91 articles and 11 additions. Everything
+ is most minutely provided for, even the form of the passage ticket. The
+ old law of 1803, drawn up in accordance with the advice of the Scotch
+ Highland Society, was apparently devised in the interest of the emigrants;
+ but it contained a multitude of minute requirements suggested by a desire
+ on the part of the advisers to restrict emigration. Hence it was, in
+ practice, by consent of both parties, always evaded. Compare <i>Lord
+ Selkirk</i>, Observations on the present State of the Highlands of
+ Scotland, with a View of the Causes and probable Consequences of
+ Emigration (1805). Edinburgh R., December, 1826, 61; January, 1828.</p>
+
+<p class="p2 center"><a name="S262"></a>SECTION CCLXII.</p>
+
+<p class="center smaller">EMIGRATION AND PAUPERISM.</p>
+
+<p>As a very rare exception, an emigration suddenly undertaken, well
+directed and on a very large scale, may be made to constitute the efficient
+means preparatory to the abolition of pauperism. Where, for instance, by
+reason of the subdivision of the land into extremely small parcels, farming
+on a diminutive scale has come to preponderate; where the popular
+home-industries have been reduced to a miserable condition by the
+immoderate competition of great foreign manufacturers and machinery, the
+hopelessness of the situation consists principally in this: that every
+improvement made must be preceded by a concentration of the forces of
+labor, and their combination with the powers of capital; which for the
+moment renders a great number of those who have been laborers hitherto
+entirely superfluous. That is, to raise the level of the whole public
+economy and provide a decent livelihood for 10,000 men, it would be
+necessary to condemn another 10,000 to death from starvation! Most
+political doctors recoil at the thought of this transition-crisis. They
+content themselves <span class='pagenum'>[Pg 375]</span> with palliatives
+which, in the end, cost much and afford no help. The simplest remedy here
+would evidently be to cause those workmen who have become superfluous to
+emigrate at the expense of the state. Next, the necessary economic reforms
+should be carried out at home and the return of the evil prevented by rigid
+legislation. The more sudden this emigration is, the nearer it comes to
+taking place, so to speak, all at once, the less possible it is that the
+increase of population should keep even pace with it. The condition of the
+proletarians who remained at home could not fail to have a favorable
+influence in this respect; for nothing leads men so much into contracting
+reckless marriages as the total absence of any prospect of amelioration of
+their condition in the future.<a name="fnanchor_262-1"
+id="fnanchor_262-1"></a><a href= "#footnote_262-1" class=
+"fnanchor">[262-1]</a> <a name="fnanchor_262-2" id="fnanchor_262-2"></a><a
+href="#footnote_262-2" class="fnanchor">[262-2]</a></p>
+
+ <p class="footnote"> <a name="footnote_262-1" id="footnote_262-1"></a>
+ <a href="#fnanchor_262-1">[262-1]</a>
+ Many of the most competent thinkers have designated such emigration as the
+ only remedy for the over-population of Ireland. Compare <i>Torrens</i>,
+ The Budget, passim; <i>J. S. Mill</i>, Principles, II, ch. 10; Edinburg
+ Rev., January, 1850. <i>Lord Palmerston</i> retained the wealthiest
+ farmers on his estates who were intending to emigrate, by causing the poor
+ ones to emigrate at his own expense. The independent emigration of the
+ Irish at their own expense which has been going on for some years, might
+ become an incalculable gain to the English nation. By the poor law, 4 and
+ 5 William IV., c. 76, the English parishes are authorized, with the
+ approval of the central poor board, to assist emigration to the extent of
+ £10 per capita. Between 1849 and 1853, they assisted 1,826 poor persons on
+ an average per annum, who received for that purpose £10,352.
+ (<i>Kries</i>, Engl. Armenpflege, 1863, 30.)</p>
+
+ <p class="footnote"> <a name="footnote_262-2" id="footnote_262-2"></a>
+ <a href="#fnanchor_262-2">[262-2]</a>
+ It is an interesting thought of <i>R. von Mokl</i>, Polizeiwissenschaft,
+ I, 130, that real over-population, when no one was willing to emigrate of
+ his own accord, might be remedied by a species of emigration-conscription
+ of young adults by the drawing of lots, the right of substitution, etc.
+ The ancient Italians sometimes realized this idea by the <i>ver
+ sacrum</i>. Similarly in many cases of Greek emigration, by the worship of
+ Apollo:<a name= "fnanchor_TN117" id= "fnanchor_TN117"></a><a href=
+ "#footnote_TN117" class= "fnanchor">[TN 117]</a> Compare <i>W. H.
+ Roscher</i>, Apollon und Mars (1873), 82 ff.</p>
+
+<p class="p2 center"><a name="S262a"></a>SECTION CCLXII (<i>a</i>).</p>
+
+<p class="center">TEMPORARY EMIGRATION.</p>
+
+<p>Besides definitive emigration, temporary emigration deserves special
+consideration. If the wages of labor are much lower <span class=
+'pagenum'>[Pg 376]</span> in one locality than in another which is easily
+accessible,<a name= "fnanchor_262a-1" id= "fnanchor_262a-1"></a><a
+href="#footnote_262a-1" class="fnanchor">[262a-1]</a> the workmen of the
+former place resolve much more readily on periodical migrations thither
+than on permanent settlements in the place. It is especially the difficult
+work of harvesting, where farmers are pressed for time,<a name=
+"fnanchor_262a-2" id="fnanchor_262a-2"></a><a href= "#footnote_262a-2"
+class= "fnanchor">[262a-2]</a> and that of house-building,<a name=
+"fnanchor_262a-3" id="fnanchor_262a-3"></a><a href="#footnote_262a-3"
+class= "fnanchor">[262a-3]</a> which are undertaken by these birds of
+passage; and <span class='pagenum'>[Pg 377]</span> mountainous regions,
+with their limited agriculture, their late crops and their longing look
+into the far-off which is found united with a deep-rooted attachment to
+home, are the places whence they come.<a name="fnanchor_262a-4"
+id= "fnanchor_262a-4"></a><a href= "#footnote_262a-4" class=
+"fnanchor">[262a-4]</a> When their home is distinguished in certain
+branches of labor, they are wont to carry these with them abroad, and in
+such case their sojourn away from home is generally longer.<a
+name="fnanchor_262a-5" id="fnanchor_262a-5"></a><a href="#footnote_262a-5"
+class="fnanchor">[262a-5]</a> The shorter and the more vagabond-like their
+migration, the less apt is it to be an economic blessing to the wanderers
+themselves.<a name= "fnanchor_262a-6" id= "fnanchor_262a-6"></a><a
+href="#footnote_262a-6" class="fnanchor">[262a-6]</a> There must
+necessarily result, as a consequence, a species of equalization between the
+<span class='pagenum'>[Pg 378]</span> rates of wages in the country
+receiving and the country furnishing them.<a name="fnanchor_262a-7"
+id= "fnanchor_262a-7"></a><a href= "#footnote_262a-7" class=
+"fnanchor">[262a-7]</a> This may be a great national misfortune for the
+latter, inasmuch as its working class may thus be forced to a lower
+standard of life, and all their providence and self-control in the founding
+of a family be made fruitless by the arrival of less capable foreigners.<a
+name="fnanchor_262a-8" id="fnanchor_262a-8"></a><a href="#footnote_262a-8"
+class="fnanchor">[262a-8]</a> The hatred existing among the members of a
+higher class for parvenus from a lower corresponds in this respect to the
+mutual hatred of two countries for the natives of the other, (<i>v.
+Mangoldt</i>.) Considered from the point of view of the country furnishing
+these migratory classes, temporary emigration has this advantage over
+definitive emigration, that the persons leaving the country always maintain
+their economic connection with their home.<a name="fnanchor_262a-9" id=
+"fnanchor_262a-9"></a><a href="#footnote_262a-9" class=
+"fnanchor">[262a-9]</a> <span class='pagenum'>[Pg 379]</span> The most
+striking example of this is afforded by those merchants, ship-owners, etc.
+who are, so to speak, pioneers in foreign markets for Switzerland and
+Bremen. Only there is always danger of a crisis when the usual flow is
+suddenly checked.<a name="fnanchor_262a-10" id="fnanchor_262a-10"></a><a
+href="#footnote_262a-10" class="fnanchor">[262a-10]</a></p>
+
+ <p class="footnote"> <a name="footnote_262a-1" id="footnote_262a-1"></a>
+ <a href="#fnanchor_262a-1">[262a-1]</a>
+ The locust-like emigration from Ireland to England takes three principal
+ directions: from Dublin to Liverpool, from Cork to Bristol, from the
+ North-East to Scotland. This even before 1835. (<i>Berkeley</i>, Querist,
+ Nr., 526 ff.) Great increase since the fare has been reduced on the
+ steamers to from 4 to 6 pence. (Edinburg Rev., XLV, 54 ff.; XLVII, 236
+ ff.)</p>
+
+ <p class="footnote"> <a name="footnote_262a-2" id="footnote_262a-2"></a>
+ <a href="#fnanchor_262a-2">[262a-2]</a> Thus mowers emigrate from
+ Württemberg and the Odenwald into the valley of the Rhine; inhabitants of
+ the Alps into the South German plains, and the inhabitants of the sandy
+ and healthy localities into the Hanoverian marshes and Holland;
+ inhabitants of the Brabant into France. Many go from Waesland, 5 and 6
+ miles distant from Holland, to sow a field manured and plowed by the owner
+ with flax, and afterwards to weed and harvest it, etc., and at their own
+ expense. (<i>Schwerz</i>, Belg. Landwirthschaft, II, 105.) Even in the
+ sixteenth century, 20,000 Frenchmen went every year to Spain in harvest
+ time. (<i>Boden</i>, Responsio ad Paradoxa, 49.) Migration of the
+ East-goers (<i>Ostgeher</i>) from Wartebruch as far as Poland and Russia
+ (<i>Frühling</i>, N. Landwirthsch., Ztg., 1870, 451 ff.) Galicians go into
+ the Polish plains, and Poles into the Prussian low country (<i>v.
+ Haxthausen</i>, Ländl. Verfassung, I, 99); Russians from the populous
+ district of Oreland Poltawa etc. into the Southern steppes (<i>Kohl</i>,
+ Reise, II, 118), and also out of Northern woody districts to Jaroslay,
+ where they give themselves to the cultivation of the fields (<i>v.
+ Haxthausen</i>, Studien, V, 198); Gallegos into the Portuguese wine
+ region; inhabitants of the Abruzzi into the Roman Campagna
+ (<i>Galiani</i>, Della Moneta, V, 4); Calabrians to Naples. In Tuscany,
+ almost the entire cultivation of the unhealthy plains is done by the
+ inhabitants of the mountains. Even in Africa migrations by the
+ <i>fulahs</i> into the plains before them (<i>Ritter</i>, Erdkunde, I,
+ 349); of the inhabitants of the cataracts of the Nile into Lower Egypt,
+ where they remain from six to eight years, and where they are in great
+ favor because of their honesty as gate-keepers and pack-carriers.
+ (<i>Burckhardt</i>, Travels, 147.)</p>
+
+ <p class="footnote"> <a name="footnote_262a-3" id="footnote_262a-3"></a>
+ <a href="#fnanchor_262a-3">[262a-3]</a>
+ In Paris, a great many masons and carpenters from Lothringen and Limousin,
+ who return after from 6 to 7 months. The number of these migratory
+ building workmen is estimated at over 40,000. (<i>Wolowski.</i>) Thus
+ thousands of brick makers migrate from Vicentini and Friaul into Austria
+ and Hungary; from the vicinity of lakes Como and Lugan, masons have been
+ spread over all Italy, and this, it is said, has been going on a thousand
+ years, (<i>v. Rumohr</i>, Reise in die Lombardei, 135 ff.) Yearly
+ migration of about 3,000 brick finishers from Lippe-Detmold, which is very
+ opportunely directed by the government. (<i>F. G. Schulze</i>, Nat. Oek.,
+ 606.)</p>
+
+ <p class="footnote"> <a name="footnote_262a-4" id="footnote_262a-4"></a>
+ <a href="#fnanchor_262a-4">[262a-4]</a>
+ In the Apennines,<a name= "fnanchor_TN118" id= "fnanchor_TN118"></a><a
+ href= "#footnote_TN118" class= "fnanchor">[TN 118]</a> almost every valley
+ has its own migration-district. Thus the Modeneses go to Corsica, and the
+ Parmesanes to England. The migration from the German Tyrol amounts yearly
+ to between 16,000 and 17,000 men. (<i>v. Reden</i>, Zeitschrift für
+ Statistik, 1848, 522.) In the Canton of Tessin, over 11,000 passes are
+ given for this purpose yearly; that is, to more than 10 per cent. of the
+ entire population. The majority go to Upper Italy, but some go to Russia.
+ The cheese-makers, pack-carriers and dealers in chestnuts, migrate from
+ fall to spring; masons, glaziers, etc. in summer.</p>
+
+ <p class="footnote"> <a name="footnote_262a-5" id="footnote_262a-5"></a>
+ <a href="#fnanchor_262a-5">[262a-5]</a>
+ Savoyards as "shoe-blacks" etc. in Paris (<i>L. Faucher</i>, La Colonie
+ des S. à Paris); Portuguese, as peddlers and pack-carriers in large cities
+ in Brazil (<i>Jahn</i>, Beitr., 33); Gallegos in the large cities of Spain
+ and Portugal as water-carriers; Bergamasks, in Milan and Genoa as
+ pack-servants, where they constitute a kind of guild; the inhabitants
+ about Lake Orta (south of the Lago Maggiore) as waiters, and hence the
+ inns there are very good; Bohemian musicians, who carry on quite a
+ different business at home during the winter; Grisons, as confectioners
+ all over Europe. Many villages obtain from this source 20,000 florins.
+ (<i>Röder und Tscharner</i>, C. Graübundten, I, 337.) There are at this
+ time about three million people from China, and almost exclusively from
+ the conquered and oppressed province of Fokien, in Farther India, where
+ they execute the finer kinds of labor. (<i>Ritter</i>, Erdkunde, IV, 787
+ ff.)</p>
+
+ <p class="footnote"> <a name="footnote_262a-6" id="footnote_262a-6"></a>
+ <a href="#fnanchor_262a-6">[262a-6]</a>
+ In Tessin, the fields are tilled, and badly enough, by old men, women etc.
+ The men spend in the taverns and in all kinds of vice what they saved
+ during the working season (<i>Franscini</i>, C. Tessen, 156 ff.) Those who
+ migrate from the vicinity of Osnabrück into Holland are said to bring back
+ with them yearly about 100,000 thalers; but their abstinence from warm
+ food, their bivouacking<a name= "fnanchor_TN119" id=
+ "fnanchor_TN119"></a><a href= "#footnote_TN119" class= "fnanchor">[TN
+ 119]</a> etc., to which they have recourse for the sake of frugality, lays
+ the germs of numberless diseases. (<i>J. Möser</i>, P. Ph, I, 14 ff.)
+ There are serious complaints of the demoralization of women produced in
+ England by the gang-system, in which roving workmen, mostly Irish, are
+ employed under a gang master to perform contract work. (<i>L. Faucher</i>,
+ Etudes sur l'Angleterre, 2, ed. I, 383, ff.)</p>
+
+ <p class="footnote"> <a name="footnote_262a-7" id="footnote_262a-7"></a>
+ <a href="#fnanchor_262a-7">[262a-7]</a>
+ Hence, for instance, Osnabrück complained bitterly of the migration to
+ Holland, because it raised the wages of servants. However, the absolute
+ freedom of removal from one place to another produces not only a leveling
+ of wages, but also an absolute rise of the rate of wages, as may be seen
+ by contrasting it with the <i>glebae adscriptio</i>. Compare <i>supra</i>,
+ § 160.</p>
+
+ <p class="footnote"> <a name="footnote_262a-8" id="footnote_262a-8"></a>
+ <a href="#fnanchor_262a-8">[262a-8]</a>
+ Great danger to the national life of the English people by immigration
+ from Ireland. The Irish laborers, bare-footed and ragged, restricting
+ themselves to potatoes and whisky, have carried their disgusting habit of
+ living in cellars, and of congregating several families together into one
+ room, even with pigs as companions, over to England. (<i>Th. Carlyle</i>,
+ On Chartism, 28 ff.; <i>G. C. Lewis</i>, The Condition of the Irish in
+ England.) It is said that, in 1819, in London alone, there were over
+ 70,000 Irish; in 1826, over 119,000. (Edinb. Rev. XLVII.) Even <i>J. S.
+ Mill</i> would have no hesitation to prohibit this emigration to prevent
+ the economic contagion spreading to English workmen. (Principles, I, ch.
+ 14, 6.) Fortunately now Irish emigration has taken the direction of
+ America, where there is more room. Whether in future Chinese emigration
+ may not greatly endanger the condition of the lower classes, first in
+ America and Australia, and then indirectly in Europe, <i>quære</i>. It is
+ estimated that between 1856 and 1859, 78,817 Chinese emigrated to the
+ United States. In Australia, to deter them from immigration, a tax of £10
+ per capita has been imposed on their entry into the country.
+ (<i>Fawcett</i>, Manual, 107.)</p>
+
+ <p class="footnote"> <a name="footnote_262a-9" id="footnote_262a-9"></a>
+ <a href="#fnanchor_262a-9">[262a-9]</a>
+ Of the East Indian coolies who had gone to Demarara, 469 returned in
+ September, 1869, after having saved in five years, £11.235. (<i>Appun</i>,
+ Unter den Troppen, II, 34).</p>
+
+ <p class="footnote"> <a name="footnote_262a-10" id="footnote_262a-10"></a>
+ <a href="#fnanchor_262a-10">[262a-10]</a>
+ The Grisons had, during the 17th century, accustomed themselves to living
+ some time in the Venetian territory as shoemakers, 1,000 at a time. The
+ blow was all the more severe when Venice, in 1766, expelled all the
+ families. Since that time most of the Grison confectionaries in the
+ principal cities of Europe have had their origin. (<i>Röder und
+ Tcharner</i>, C. Graudbundten, I, 56.) The practice of engaging
+ mercenaries as troops was of great assistance, especially in the interior
+ of Switzerland. During the war of 1690 ff., there were nearly 36,000 Swiss
+ hirelings in the French army. Shortly before 1789, even during the period
+ of peace in France, Italy, Spain and Holland, their number may be
+ estimated to have been at least 30,000. (<i>Meyer v. Knonau</i>, Gesch.
+ der Schweiz. Eidgenossenschaft, II, 104, 464.) No wonder, therefore, that
+ the cessation of the Swiss guards caused a frightful crisis. Expulsion of
+ the Tessinians from Lombardy, 1853.</p>
+
+<p class="p2 center"><a name="S263"></a>SECTION CCLXIII.</p>
+
+<p class="center smaller">CONCLUSION.</p>
+
+<p>That the economy of no nation can continue to grow <i>ad infinitum</i>
+is, in general, as easy to believe<a name= "fnanchor_263-1" id=
+"fnanchor_263-1"></a><a href= "#footnote_263-1" class=
+"fnanchor">[263-1]</a> as it is difficult to point out with a specification
+of particulars what are the limits which cannot be exceeded. This would be
+possible first <span class='pagenum'>[Pg 380]</span> in the case of
+agriculture. Here there are points beyond which every man practically
+versed in the art can see, that an increase of the gross product must be
+attended by an absolute decrease in the net product.<a name=
+"fnanchor_263-2" id="fnanchor_263-2"></a><a href="#footnote_263-2" class=
+"fnanchor">[263-2]</a> But even supposing that a <span class= 'pagenum'>[Pg
+381]</span> people had reached this point in their entire agriculture, they
+might still carry on industries, commerce, perform personal services for
+other nations, and obtain remuneration therefor in the means of subsistence
+and manufactured articles. If our nation has once entered on this path, it
+is evident that every improvement of its industry, every advance made by
+foreign countries in the production of raw material, manufactures and the
+consumption of services must result in a growth of our economy. David Hume
+was of opinion that industrial preponderance was in a necessary and
+continual state of transition from one country to another. A very highly
+developed state of industry made a country rich in money but enhanced the
+price of the means of subsistence, and the rate of wages; until finally it
+became impossible for it to compete in the markets of the world with
+cheaper countries, and industry, in consequence, emigrated to these.<a
+name="fnanchor_263-3" id="fnanchor_263-3"></a><a href="#footnote_263-3"
+class="fnanchor">[263-3]</a> But it is easy to see how all such limits are
+extended by the modern improvements in transportation, and the consequent
+facilitation of importation; and how much the remedy mentioned in § 198 has
+gained in importance by the modern advances made in machinery and the
+preponderance in so many respects of machine over hand labor.<a
+name="fnanchor_263-4" id="fnanchor_263-4"></a><a href="#footnote_263-4"
+class="fnanchor">[263-4]</a></p>
+
+<p><span class='pagenum'>[Pg 382]</span>But here it is necessary to
+distinguish between the "applied" and only practical political economy, and
+"pure political economy." (§ 217.) A development thus continued would be
+attended with great difficulty even if the whole world constituted one
+great empire. We need only mention Austria, where some provinces have
+remained in a very backward, almost medieval condition, while others have
+for a long time manifested the symptoms of over-population. How much more
+in different states. An uncivilized nation will frequently not care to
+increase its consumption of our manufactures, if to do so it becomes
+necessary to carry on its agriculture more industriously. Another nation
+that has already tasted of the fruit of the tree of economic knowledge may
+not be satisfied with the mere production of raw material forever. In time
+it may want to carry on commerce and industry itself, and hence consider
+the breaking of its commercial course with us as a species of emancipation
+from us. And, further, how if other highly cultivated nations should
+compete with us in the markets of countries which produce merely raw
+material? if such rivals should wage war in which each party should harm
+his adversary for the mere love of doing harm, and not unfrequently in
+opposition to its own economic interests? I know of no period the
+development of which has not been attended by such disturbances, and hence
+they cannot be said to be entirely unnatural.<a name="fnanchor_263-5"
+id="fnanchor_263-5"></a><a href="#footnote_263-5"
+class="fnanchor">[263-5]</a></p>
+
+<p><span class='pagenum'>[Pg 383]</span>And even at home and among highly
+civilized nations, there are wont to be many obstacles to advancement on
+this road of progress. Every great economic change is connected as cause
+and effect, with a variety of political, social and other reformations
+which are never accomplished without great hardship and hesitation.<a
+name="fnanchor_263-6" id="fnanchor_263-6"></a><a href="#footnote_263-6"
+class="fnanchor">[263-6]</a> Where the division of labor has been developed
+to any extent, the formerly existing circumstances which must be
+surrendered for the sake of progress are generally synonymous with the
+interests of some class. This class opposes the improvement, and a struggle
+becomes necessary to carry it out. But under certain circumstances, a long
+delay in effecting a necessary reform may paralyse or poison the minds of
+the people to such an extent that they may afterwards have neither the will
+nor the power to successfully advance. This is the most important exception
+to the rule laid down in § 24. The happier the ethnographic and social
+composition of a people, the better the national spirit, the more skillful
+the form of its constitution, the less frequently will it happen.<a
+name="fnanchor_263-7" id="fnanchor_263-7"></a><a href="#footnote_263-7"
+class="fnanchor">[263-7]</a> All this is true especially of over-population
+and the plethora<a name="fnanchor_263-8" id="fnanchor_263-8"></a><a
+href="#footnote_263-8" class="fnanchor">[263-8]</a> of capital which so
+easily injure the morality of a people. New inventions also, by means of
+which the limits of the possibility of production may be incalculably
+extended can <span class='pagenum'>[Pg 384]</span> be expected only from
+nations where there is no intellectual decline.<a name="fnanchor_263-9"
+id= "fnanchor_263-9"></a><a href= "#footnote_263-9" class=
+"fnanchor">[263-9]</a></p>
+
+ <p class="footnote"> <a name="footnote_263-1" id="footnote_263-1"></a>
+ <a href="#fnanchor_263-1">[263-1]</a>
+ There are, indeed, different opinions on this matter, and they were
+ preponderant during the second half of the eighteenth century. Compare
+ <i>Condorcet</i>, Tableau historique,<a name= "fnanchor_TN120" id=
+ "fnanchor_TN120"></a><a href= "#footnote_TN120" class= "fnanchor">[TN
+ 120]</a> des Progrès de l'Esprit humain, especially Epoque X, in which he
+ treats of future progress. Nevertheless, he obscurely alludes (Œuvres,
+ VIII, 350) to a time when no further increase of population should take
+ place. <i>Malthus</i>, Principle of Population, III, ch. 1, thoroughly
+ demonstrates that in regard to the great prolongation of human life which
+ he foresaw, the idea of the indefinite and that of the infinite were
+ confounded with each other.</p>
+
+ <p class="footnote">In that young and vigorous country, the United States
+ of America, we find a popular school which, to say the least, hints at the
+ principle of infinite growth. Thus, for instance, <i>Peshine Smith</i>
+ (Manual of Political Economy, New York, 1853) teaches that the means of
+ subsistence consumed at the place of production are not destroyed, but may
+ return just as much to the soil in the form of manure as they had
+ previously drawn from it (ch. 1). Capital has a tendency to increase more
+ rapidly than population (ch. 6). The rate of wages has a tendency to
+ increase with the increase of population (ch. 5). Mechanical progress
+ increases the value of human labor and causes that of capital to decline
+ relatively (ch. 3). He reverses, with <i>Carey</i>, Ricardo's law of rent
+ (ch. 2).</p>
+
+ <p class="footnote"><i>Carey</i>, also, relying on the assumption that
+ more fertile land is brought under cultivation as civilization advances,
+ allows us to see no limits whatever to this growth. (Past, Present and
+ Future, ch. 3.) Still more clearly is the principle of unlimited and
+ continually accelerated growth laid down in his Principles of Social
+ Science, I, 270. <i>Carey</i> illustrates this principle by means of the
+ example of the continually accelerated motion of a falling body, without
+ noticing the practical <i>ad absurdum deductio</i> involved in it, that at
+ the end of the thousandth second a falling body reaches a velocity of
+ 1,000,000 feet. (loc. cit., 204.) But even in England, at present, we find
+ such thoughts at times. <i>Banfield</i>, for instance, can scarcely
+ understand how the relative rates of wages, interest and rent can
+ decrease, except by an increase of their absolute amounts. See his
+ Organization of Industry, passim. And so <i>v. Prittwitz</i> entertains
+ the most rosy-colored hopes. He has no doubt that all governments which
+ are still bad will see the error of their ways and correct them. (Kunst
+ reich zu werden, 79.)</p>
+
+ <p class="footnote">The growth of capital and even of human wealth in
+ general is capable of indefinite increase (81). The rate of interest would
+ sink almost to zero if so much capital were accumulated that no
+ "undertakers" could be found who care to use it (305). Large farming will
+ entirely cease in the future (307), and when the system of railroads is
+ entirely completed, the whole earth will present the appearance of one
+ immense park (29). He would allay all fear concerning the exhaustion of
+ combustible material by pointing out the possibility consequent upon
+ improved means of communication, that a great many of the inhabitants of
+ the colder regions of the earth might migrate in winter to a warmer
+ climate (21). At the same time, artesian wells might be made to bring to
+ the surface the internal heat of the earth, or metallic plates connected
+ with the wings of a windmill, might be made to generate heat by their
+ friction on one another (22). See the same author's Andeutungen über
+ künftige Fortschritte und die Gränz en der Civilization, 21 Aufl.,
+ 1855.</p>
+
+ <p class="footnote"> <a name="footnote_263-2" id="footnote_263-2"></a>
+ <a href="#fnanchor_263-2">[263-2]</a>
+ According to § 165, we might say: where the product of the workman last
+ employed is not sufficient to meet his own wants. Thus <i>J. B. Say</i>
+ says that only that can be considered a product, the utility of which is
+ at least equal to its cost. He makes use of the example where a three
+ days' journey is necessary to obtain the food requisite for one. As the
+ limits of production he gives the following: too few human wants; too
+ costly methods of production; too high taxes, natural obstacles created by
+ infertility or too great distance. (Traite I, ch. 15. Cours pratique, I,
+ 349.)</p>
+
+ <p class="footnote"> <a name="footnote_263-3" id="footnote_263-3"></a>
+ <a href="#fnanchor_263-3">[263-3]</a>
+ <i>D. Hume</i>, Discourses, No. 3, On Money.</p>
+
+ <p class="footnote"> <a name="footnote_263-4" id="footnote_263-4"></a>
+ <a href="#fnanchor_263-4">[263-4]</a>
+ England is especially well situated in this respect, in consequence of its
+ excellent commercial position and its surplus of the principal auxiliary
+ products, such as coal, iron, etc. Should the coal-beds of such a
+ manufacturing country be ever entirely exhausted, it is scarcely possible
+ to see, from our present point of view, how the most rapid and most
+ frightful decline of its national economy could be averted! Compare the
+ opening address before the British Association, by Armstrong, at Newcastle
+ (1863), who prophecies the exhaustion of the English coal-beds in 212
+ years at the rate at which coal had been consumed during the eight
+ preceding years. According to the report of the royal committee on the
+ coal question (1871, vol. III), Great Britain has still attainable
+ deposits, that is 4,000 feet deep, 90,207,000,000 tons of coal in its coal
+ beds already known; and in beds not yet worked, 56,273,000,000 tons.
+ Compare, also, <i>Jevons</i>, The Coal Question (1866). It is estimated
+ that the most productive French coal-field will be exhausted in 100 years.
+ (<i>M. Chevalier</i>, Rapport du Jury international de 1867, 57.)</p>
+
+ <p class="footnote"> <a name="footnote_263-5" id="footnote_263-5"></a>
+ <a href="#fnanchor_263-5">[263-5]</a>
+ Even <i>J. S. Mill's</i> views on the probability of perpetual peace on
+ earth are altogether too rosy: Principles III, ch. 17, 5. This is still
+ truer of <i>Buckle</i>. History of Civilization, I, ch. 4. In the modern
+ state-system of Europe, there is wont to be in each generation, a peaceful
+ half and a warlike one, which follow each other as ebb and flow. I need
+ only mention the preponderance of peace between 1714 and 1740, between
+ 1763 and 1793, and between 1815 and 1853. It happens frequently that at
+ the close of the period of peace, intelligent and noble but unhistorical
+ and therefore short-sighted minds begin to dream of perpetual peace. Even
+ a man like <i>Dohm</i> (Ueber die bürgerliche Verbesserung der Juden, 227
+ seq.) expected, in 1785, that considering the size and quality of armies,
+ and the mutual knowledge of all countries of one another, that instead of
+ actually waging war, nations might send to each other well authenticated
+ statements of the strength, for instance, of their navies and of the sums
+ necessary to maintain them for a number of years.</p>
+
+ <p class="footnote"> <a name="footnote_263-6" id="footnote_263-6"></a>
+ <a href="#fnanchor_263-6">[263-6]</a>
+ The Mongols saw the abandonment of their nomadic life in so gloomy a light
+ that they seriously thought of turning all China with its countless human
+ beings into pasture-land! (<i>Gibbon</i>, History of the Roman Empire, ch.
+ 34.)</p>
+
+ <p class="footnote"> <a name="footnote_263-7" id="footnote_263-7"></a>
+ <a href="#fnanchor_263-7">[263-7]</a>
+ It is a fact characteristic of the history of England, that Norman
+ supremacy and afterwards bondage were wiped out so gradually that
+ contemporary historians have nothing to say of the transformation.
+ (<i>Macaulay</i>, History of England, ch. 1.) Repeal of the corn laws
+ <i>vis-a-vis</i> of the most recent industrial advance of the country.</p>
+
+ <p class="footnote"> <a name="footnote_263-8" id="footnote_263-8"></a>
+ <a href="#fnanchor_263-8">[263-8]</a>
+ Even <i>Ricardo</i> says that in a highly civilized country the continual
+ making of savings is by no means desirable. Carried to an extreme, saving
+ would lead to the equal poverty of all. (Principles, ch. 5.)</p>
+
+ <p class="footnote"> <a name="footnote_263-9" id="footnote_263-9"></a>
+ <a href="#fnanchor_263-9">[263-9]</a>
+ The <i>Beccaria</i>, Economia publica I, 3, 31, teaches that the limits of
+ population are to be found at the point where agriculture cannot be made
+ to yield an additional increase of products, and where foreign countries
+ do not offer any more a counter value of their products in exchange for
+ the manufactured articles and the services to be furnished them.
+ Similarly, <i>Büsch</i>, Geldumlauf III, 7; otherwise, indeed, V, 15, in
+ which, in opposition to <i>Adam Smith</i>, it is claimed that the work to
+ be performed by one nation for others has no limits which cannot be
+ exceeded. <i>Steuart's</i> theory of the limits to the production of every
+ commercial nation: Principles, I, ch. 18. <i>Lauderdale</i>, Inquiry, ch.
+ 5, 274 ff., says categorically, that all wealth which is produced by the
+ transformation of raw material depends on the production of such raw
+ material, and of the means of subsistence necessary for the support of the
+ labor employed in such transformation. Excellent investigations by
+ <i>Malthus</i> in the additions (1817) to the Essay on the Principles of
+ Population, II, ch. 9-13. Compare <i>Roscher</i> Nationalöcon. des
+ Ackerbaues, § 162. As early a writer as <i>Mirabeau</i>, Philosophie
+ rurale, ch. X, was of opinion that a country whose industries were on as
+ large a scale as those of Holland, dispersed its people indeed over the
+ whole earth, made them independent at home, but almost destroyed their
+ nationality.</p>
+
+<p class="p2 center"><a name="S264"></a>SECTION CCLXIV.</p>
+
+<p class="center smaller">THE DECLINE OF NATIONS.</p>
+
+<p>That, after a whole nation has reached the zenith of its prosperity, it
+is subject to old age and to decline, and cannot avoid them, is in general,
+a proposition susceptible neither of proof nor refutation.<a name=
+"fnanchor_264-1" id= "fnanchor_264-1"></a><a href= "#footnote_264-1"
+class="fnanchor">[264-1]</a> This uncertainty is practically very useful,
+for were it otherwise, mediocre statesmen might become either discouraged
+or indifferent. However, we should not assume, as so many do,<a
+name="fnanchor_264-2" id="fnanchor_264-2"></a><a href="#footnote_264-2"
+class="fnanchor">[264-2]</a> without proof, the earthly immortality
+<span class='pagenum'>[Pg 385]</span> of nations, provided only they
+observe a proper diet; nor call the science of the physiology or medicine
+of nations a chimera, simply because it confesses that it knows of no
+preventive against such old age. It has doubtless been the fate of many
+nations to die, that is, not precisely to be destroyed&mdash;just as in the
+physical world, not a particle of matter is lost&mdash;but to see their
+former national personality disappear, and themselves continue to exist
+only as component parts of some other nation.<a name="fnanchor_264-3"
+id= "fnanchor_264-3"></a><a href= "#footnote_264-3" class=
+"fnanchor">[264-3]</a> This phenomenon, indeed, finds its analogon in every
+thing that is human, but seems to contradict a law of nature which very
+widely prevails, viz.: that it is easier to advance in a certain direction
+in proportion to the distance gone over in it already.<a name=
+"fnanchor_264-4" id= "fnanchor_264-4"></a><a href= "#footnote_264-4"
+class="fnanchor">[264-4]</a></p>
+
+<p>The problem of decline, however, is solved by the enervating influence
+of possession and power, an influence which only a select few among men can
+escape. And yet to every external advance there must be a corresponding
+advance of the interior man, else there is a fall great in proportion to
+the height before attained. The greater number take their ease once they
+have attained the object of their ambition. I need only cite the example of
+the posterity of those men who have <span class='pagenum'>[Pg 386]</span>
+grown rich by unusual exertion. Success itself generates vanity and a
+feeling of false security, the latter especially, inasmuch as that is
+expected from the whole community, from the state for instance, from others
+generally, which should be the fruits of one's own vigilance and one's own
+endeavors. It should not be forgotten that the nation is made up of
+individuals.<a name="fnanchor_264-5" id="fnanchor_264-5"></a><a
+href="#footnote_264-5" class="fnanchor">[264-5]</a></p>
+
+<p>In addition to this there is the striving after the new for the sake of
+novelty; a striving promotive of progress in itself, and without which the
+full development of the forces of civilization would probably not be
+possible. But if the genius of no nation is possessed of infinite
+capacities, it must happen, at last, that, in case the best has been
+attained, and the demand for novelty continues, men will go over to that
+which is worse. Even very great competition has here a dangerous influence,
+since it raises the great mass of the incompetent to the dignity of judges,
+and endeavors to seduce them by illicit means; in the arts, for instance,
+sensuousness is made to take the place of the feeling of the beautiful.<a
+name="fnanchor_264-6" id="fnanchor_264-6"></a><a href="#footnote_264-6"
+class="fnanchor">[264-6]</a></p>
+
+<p>There is, further the process of undeceiving, inseparable from the
+prosecution of any ideal purpose. Such ideals have always very much of
+human weakness in them. The great crowd of ordinary men follow, as a rule,
+their material interests. <span class='pagenum'>[Pg 387]</span> Only
+occasionally do they rise to the height of ideal things; and here we
+discover the brightest points in history. Later there comes uniformly a
+period of disenchantment and of exhaustion after the debauch is over. When
+all the ideals accessible to the nation have been destroyed or outlived,
+nothing can be done to awaken the masses from their slumber, or induce them
+to shake off their inactivity.</p>
+
+<p>As a rule, the influences which have accelerated a nation's progress and
+brought it to the apogee of its social existence end in precipitating its
+ruin by their further action. Every direction which humanity takes has
+almost always something of evil in it, is limited in its very nature, and
+cannot stand its extremest consequences.<a name="fnanchor_264-7"
+id= "fnanchor_264-7"></a><a href= "#footnote_264-7" class=
+"fnanchor">[264-7]</a> All earthly existence bears in itself, from the
+first, the germs of its decay.</p>
+
+<p>However, to calm the feeling of human liberty, we may boldly assert that
+there never was a nation remarkable for its religiousness and morality
+which declined so long as it preserved these highest of all goods; but then
+no nation outlived their possession.</p>
+
+ <p class="footnote"> <a name="footnote_264-1" id="footnote_264-1"></a>
+ <a href="#fnanchor_264-1">[264-1]</a>
+ Even in the case of individuals, that death is necessary is not
+ susceptible of absolute demonstration; but no one doubts it, because of
+ the experience so frequently repeated; an experience, however, which
+ cannot be had in the same degree in the case of whole nations.</p>
+
+ <p class="footnote"> <a name="footnote_264-2" id="footnote_264-2"></a>
+ <a href="#fnanchor_264-2">[264-2]</a>
+ Remarkable controversy<a name= "fnanchor_TN121" id=
+ "fnanchor_TN121"></a><a href= "#footnote_TN121" class= "fnanchor">[TN
+ 121]</a> between <i>Hume</i> and <i>Tucker</i>. The former had charged the
+ latter with holding the opinion that industry and wealth must necessarily
+ continue to advance indefinitely; and yet all things had in them the germs
+ of decay. <i>Tucker</i>, on the other hand, remarked that all he wished to
+ say was that no one could point out where progress must necessarily cease.
+ All political bodies like all natural bodies might decay; but it is not
+ necessary that they should. With good laws and morality they would become
+ more vigorous with increasing age. A great deal depended here on the more
+ general distribution of property, on the assurance that industry would
+ meet with its reward, and on the removal of the principal defects in the
+ English electoral system. (Four Tracts, 477 seq. Two Sermons, 30.) Most
+ political economists are of the same opinion; thus <i>McCulloch</i>,
+ Principles, II, 3. See, however, the last two sections in <i>Ferguson</i>,
+ History of civil Society.</p>
+
+ <p class="footnote"> <a name="footnote_264-3" id="footnote_264-3"></a>
+ <a href="#fnanchor_264-3">[264-3]</a>
+ We assume that a new nation has arisen, when, after the disappearance of
+ an earlier and high civilization, combined with the taking up of new
+ ethnographic elements, we perceive anew the easily recognizable symptoms
+ of youthful immaturity.</p>
+
+ <p class="footnote"> <a name="footnote_264-4" id="footnote_264-4"></a>
+ <a href="#fnanchor_264-4">[264-4]</a>
+ Expressed in the domain of religion in the words of the Savior:
+ <i>Matth.</i>, 25, 29. But at the same time the equally well-known
+ expression in <i>Luke</i>, 12, 48, must be fulfilled. Compare <i>H.
+ Brocher</i>, L'Economie monétaire, 1871, 25 ff.</p>
+
+ <p class="footnote"> <a name="footnote_264-5" id="footnote_264-5"></a>
+ <a href="#fnanchor_264-5">[264-5]</a>
+ Schools of art are generally ruined by mannerism. Of the two great means
+ of education in art, the study of nature and the study of classic models,
+ the latter is the easier, and the former is readily neglected for it. Then
+ there is the endeavor to flatter the master, which is most effectually
+ done by imitating his faults; and the fact that pretending connoisseurs
+ are most cheaply satisfied by mannerism.</p>
+
+ <p class="footnote"> <a name="footnote_264-6" id="footnote_264-6"></a>
+ <a href="#fnanchor_264-6">[264-6]</a>
+ There is a peculiar charm, very productive in itself, attaching to the
+ cultivation of a field which has been but little cultivated, and which,
+ therefore, has the advantage of promising something new. On the other
+ hand, the decline of almost all literatures begins with this, that writers
+ and readers no longer think out completely the forms of speech, modes of
+ expression, etc. to which they have become used, as their original
+ creators did; a great temptation to have recourse to a more and more spicy
+ literary style. <i>J. S. Mill</i> considers the stationary state
+ (Principles, IV, ch. 6) a very pleasant one to contemplate, but he
+ overlooks the very important fact, that as men are constituted it
+ uniformly introduces national decline.</p>
+
+ <p class="footnote"> <a name="footnote_264-7" id="footnote_264-7"></a>
+ <a href="#fnanchor_264-7">[264-7]</a>
+ Great rulers, of whom it is said that they conquered the world by
+ following out their own ideas to their ultimate consequences, would most
+ certainly have lost the world by reason of the same logic if they had
+ continued it only fifty years longer. What would have become of Alexander
+ the Great and Charlemagne if they had lived one generation more?</p>
+
+<p class="p2 center"><a name="S265"></a>SECTION CCLXV.</p>
+
+<p class="center smaller">CONCLUSION.</p>
+
+<p>All the separate nations which have lived side by side, or followed one
+another, are embraced under the general name, humanity. Who would deny the
+existence of a point, viewed from which humanity might be seen to
+constitute one great whole; all the variations and differences in its life
+only one great plan, one wonderful sovereign decree of the divine will,
+grandly and wonderfully executed by God? Or who is so bold as to say that
+he stands on this point himself? Theologians should be the last to do it,
+since even the apostle Paul calls <span class='pagenum'>[Pg 388]</span>
+God's ways inscrutable. So long as we do not even know whether we live in
+one of the first or one of the last decades of humanity, every system of
+universal history in which each nation and period is made to take its place
+in due subordination to its superiors, can be only a castle in the air; and
+it is a matter of indifference whether the basis of the system is
+philosophical, socialistic, or natural-philosophical.<a name=
+"fnanchor_265-1" id="fnanchor_265-1"></a><a href="#footnote_265-1" class=
+"fnanchor">[265-1]</a></p>
+
+<p>The usual error into which the builders of such history fall, is that
+they consider the peculiarities of certain stages of civilization, which
+may be shown to exist among all nations in the corresponding period of
+their history as the national peculiarity of the single people with whose
+history they are, for the time being, concerned. They deduce wonderful
+consequences, from the premises they laid down, but which our increasing
+acquaintance with other nations immediately shows to be unfounded.</p>
+
+<p>There is, however, a number of facts really peculiar to a people which
+make up the national character, and which may give to an observer endowed
+with an imaginative mind, an inkling to the special vocation in the economy
+of providence of a particular people. That a positive system can be
+constructed from the material of such facts, I do not, indeed, think. But
+they are at least a safeguard against false systems, against the improper
+application of analogies, against the idle, fatalistic exaggeration of the
+maxim: "nothing new under the sun!" It had almost become the fashion to
+compare our present with the period of decline of the Greek and Roman
+republics. Frightful parallel, in which the greatest and most undoubted
+differences were frequently overlooked for smaller and certainly
+questionable similarities. Is not the abolition of slavery, which has been
+accomplished among all <span class='pagenum'>[Pg 389]</span> the most
+important nations of the present, something new and of great import from a
+moral and economic point of view?<a name="fnanchor_265-2" id=
+"fnanchor_265-2"></a><a href="#footnote_265-2" class="fnanchor">[265-2]</a>
+Can the national wealth, which depends on labor and frugality, be in any
+way compared with that which was based on plunder? And so, no one can
+calculate the benefits which may be reaped by posterity from the mere
+continuation of the scientific and especially natural-philosophical results
+obtained by former generations. The discovery of the whole earth soon to be
+completed, and its probable consequence, the civilization of all nations of
+any importance, must remove the danger to which all the civilized nations
+of antiquity eventually succumbed, namely, destruction by entirely
+barbarous hordes. Nor should the significance of the state-system of
+Europe, which might be extended soon enough into a state-system embracing
+the world, be under-estimated. Macedonia would not so readily have
+subjugated the Hellenes and the Persians if the great powers of the west,
+Rome and Carthage, had intervened at the right time. And there, too, is
+Christianity, whose means of grace are at hand for every one at all times,
+for his complete moral regeneration.</p>
+
+<p>In one word, the usual argument with which the "man of experience" meets
+the man of inventive genius, that there never was anything of the like seen
+before, may suffice in thousands and thousands of cases; but it affords no
+strict proof. It is the province of genius to compel rules to extend their
+limits. But science should never forget that self-denial is necessary to
+the discovery of truth.<a name="fnanchor_265-3" id="fnanchor_265-3"></a><a
+href="#footnote_265-3" class="fnanchor">[265-3]</a></p>
+
+ <p class="footnote"> <a name="footnote_265-1" id="footnote_265-1"></a>
+ <a href="#fnanchor_265-1">[265-1]</a>
+ I mean here, especially, the attempt so frequently made (by <i>Herder</i>,
+ for instance) to draw a parallel between the periods of universal history
+ and the age at different times of the individual, or with the seasons. If
+ there were a great many humanities between which we might institute a
+ comparison, we might accomplish something with the analogy,
+ but&mdash;&mdash;!</p>
+
+ <p class="footnote"> <a name="footnote_265-2" id="footnote_265-2"></a>
+ <a href="#fnanchor_265-2">[265-2]</a>
+ However, even such a man as Minister <i>Stein</i>, thinks that a
+ laboriously acquired wealth may affect a people's morality injuriously.
+ "The striving after wealth is the striving for the possession of the means
+ of satisfying chiefly sensuous wants. This striving may suppress all
+ nobler feelings, whether it find expression in violence or industry."
+ Contrariwise, it is possible that some of the noblest of human qualities
+ may be found side by side with the forcible acquisition of wealth, viz.:
+ courage, patriotism. (<i>Pertz</i>, Leben Steins, II, 466.)</p>
+
+ <p class="footnote"> <a name="footnote_265-3" id="footnote_265-3"></a>
+ <a href="#fnanchor_265-3">[265-3]</a>
+ Compare my discourse on the relation of Political Economy to classic
+ antiquity in the transactions of the royal Saxon Academy of Sciences, May,
+ 1849; also many excellent remarks in <i>Knies</i>, Polit. Oekonomie.
+ <i>Chr. J. Kraus</i>, has zealously discussed the question whether the
+ development of humanity turns about eternally in a circle, or whether it
+ forever advances to a progressively better future. He strongly advocates
+ the latter view, and on grounds which appeal both to the head and to the
+ heart. (Vermischte Schriften, III, 146 ff.; IV, 277 ff.)</p>
+
+<p><span class='pagenum'>[Pg 390]</span><br />
+<span class='pagenum'>[Pg 391]</span></p>
+
+<h3 class="p4">APPENDIX II.</h3>
+
+<h3>INTERNATIONAL TRADE.</h3>
+
+<p><span class='pagenum'>[Pg 392]</span><br />
+<span class='pagenum'>[Pg 393]</span></p>
+
+<h3 class="p4">INTERNATIONAL TRADE.</h3>
+
+<p class="p2 center">SECTION I.</p>
+
+<p class="center smaller">THE MERCANTILE SYSTEM.</p>
+
+<p>The principal peculiarities of the so-called mercantile system depend on
+a five-fold over-estimation: of the density of population, of the quantity
+of money, of foreign commerce, of the industries concerned with the
+transformation of materials (<i>Verarbeitungsgewerbe</i>), and of the
+guardianship of the state over private industry.<a name="fnanchor_A2-1-1"
+id= "fnanchor_A2-1-1"></a><a href= "#footnote_A2-1-1" class=
+"fnanchor">[A2-1-1]</a> All these tendencies are very intelligible, and
+almost self-evident, in a sovereign city-economy (<i>Stadtwirthschaft</i>)
+as opposed to the governed and worked-out (<i>ausgebeuteten</i>)<a name=
+"fnanchor_TN122" id= "fnanchor_TN122"></a><a href= "#footnote_TN122" class=
+"fnanchor">[TN 122]</a> country districts; as they are found even in the
+city-republics of later medieval times. But they are also natural in whole
+national economies, during that period of youthful and rapid growth in
+which the increasing density of population continues still, for a long
+time, to be really only a spur and an assistance, and in which, therefore,
+there can be no expression of anxiety concerning over-population; in which
+the new and rapidly growing division of labor draws attention particularly
+to the market-side of all businesses and to the circulation of goods; in
+which the progress from trade by barter to trade by money necessarily makes
+the volume of money needed even relatively greater; but especially are they
+natural in that world-period in which foreign trade suddenly increased
+enormously in consequence of the discovery of the <span class='pagenum'>[Pg
+394]</span> whole earth; when the citizen classes of the people assumed
+immense importance as compared with the landed and clerical aristocracy,
+and when, in the internal affairs of state absolute monarchy, and in
+foreign politics, the system of equilibrium, through the instrumentality of
+the great compact-formation of states prevailed.</p>
+
+<p>All these tendencies are most intimately connected with one another. If
+precious metal-money be really the essence of national wealth,<a
+name="fnanchor_A2-1-2" id="fnanchor_A2-1-2"></a><a href="#footnote_A2-1-2"
+class="fnanchor">[A2-1-2]</a> a people who possess no gold and silver mines
+themselves;<a name="fnanchor_A2-1-3" id="fnanchor_A2-1-3"></a><a
+href="#footnote_A2-1-3" class="fnanchor">[A2-1-3]</a> for instance, Italy,
+France and England, can become <span class='pagenum'>[Pg 395]</span>
+richer only through foreign trade,<a name="fnanchor_A2-1-4" id=
+"fnanchor_A2-1-4"></a><a href= "#footnote_A2-1-4" class=
+"fnanchor">[A2-1-4]</a> by means of a favorable balance produced by a
+preponderance of their exports over their imports; and only inasmuch as
+this excess is balanced by a payment in money from foreign parts. And so,
+too, in foreign trade, one nation can gain only what another nation has
+lost.<a name= "fnanchor_A2-1-5" id= "fnanchor_A2-1-5"></a><a href=
+"#footnote_A2-1-5" class="fnanchor">[A2-1-5]</a> Gain is promoted not only
+by direct obstacles placed in the way of the exportation of the precious
+metals, but still more by the value-enhancement of the exported
+commodities, and by the value-diminution of the imported commodities.<a
+name= "fnanchor_A2-1-6" id= "fnanchor_A2-1-6"></a><a href="#footnote_A2-1-6"
+class="fnanchor">[A2-1-6]</a> And as commodities which have undergone the
+process of transformation <span class='pagenum'>[Pg 396]</span> are, on an
+average, more valuable than raw materials, the state can best carry out
+this policy by import duties, import prohibitions, and export premiums on
+manufactured articles, as well as by export duties, export prohibitions and
+import premiums on raw materials.<a name="fnanchor_A2-1-7" id=
+"fnanchor_A2-1-7"></a><a href= "#footnote_A2-1-7" class=
+"fnanchor">[A2-1-7]</a> This is extremely necessary against those nations
+who are superior to others in culture, wealth, the cheapness of labor and
+capital; and hence the envy of the mercantilists was directed chiefly
+against Holland, and after Colbert's time also against France.<a name=
+"fnanchor_A2-1-8" id="fnanchor_A2-1-8"></a><a href="#footnote_A2-1-8"
+class="fnanchor">[A2-1-8]</a> Such commodities as are not at all adapted to
+the nature of a country, because of its climate, for instance, the nation
+should produce at least in colonies of its own, that it might, in this
+<span class='pagenum'>[Pg 397]</span> way, emancipate itself from foreign
+countries.<a name= "fnanchor_A2-1-9" id= "fnanchor_A2-1-9"></a><a href=
+"#footnote_A2-1-9" class="fnanchor">[A2-1-9]</a> As the clear distinction
+drawn to-day between money and capital has asserted itself only since
+Hume's time, the notion that prevailed for centuries, that much money, much
+trade and a large population mutually conditioned one another, was a very
+natural one.<a name="fnanchor_A2-1-10" id="fnanchor_A2-1-10"></a><a
+href="#footnote_A2-1-10" class="fnanchor">[A2-1-10]</a></p>
+
+<p>The younger and more refined conception of the mercantile system is
+distinguished from the coarse Midas-believing one, by two tendencies
+especially:</p>
+
+<p>A. By the more thorough consideration of the balance of trade and the
+consequent limitation of the traditional supposition, that the excess of
+exports over imports would be always made up in cash money.<a name=
+"fnanchor_A2-1-11" id="fnanchor_A2-1-11"></a><a href= "#footnote_A2-1-11"
+class="fnanchor">[A2-1-11]</a></p>
+
+<p>B. By the extension of the field of view, so that not only the direct
+but also the indirect and more remote effects of international trade were
+taken into consideration.<a name= "fnanchor_A2-1-12"
+id= "fnanchor_A2-1-12"></a><a href= "#footnote_A2-1-12"
+class= "fnanchor">[A2-1-12]</a></p>
+
+<p><span class='pagenum'>[Pg 398]</span>A certain over-estimation of the
+circulation of goods continued to characterize even the latest adherents of
+the mercantile system.<a name= "fnanchor_A2-1-13" id=
+"fnanchor_A2-1-13"></a><a href= "#footnote_A2-1-13" class=
+"fnanchor">[A2-1-13]</a> Yet the caricature drawn by the tradition of more
+recent text-books, of the mercantilists, is true only of the inferior ones
+among them.<a name= "fnanchor_A2-1-14" id="fnanchor_A2-1-14"></a><a href=
+"#footnote_A2-1-14" class= "fnanchor">[A2-1-14]</a> The most distinguished
+of them, Botero,<a name= "fnanchor_A2-1-15" id= "fnanchor_A2-1-15"></a><a
+href= "#footnote_A2-1-15" class= "fnanchor">[A2-1-15]</a> for instance,
+approximate more closely to the science of the present day than is usually
+supposed.</p>
+
+ <p class="footnote">
+<a name="footnote_A2-1-1" id="footnote_A2-1-1"></a>
+<a href="#fnanchor_A2-1-1">[A2-1-1]</a>
+ Compare <i>Roscher</i>, Geschichte der Nationalökonomik in Deutschland, I,
+ 228 ff.</p>
+
+ <p class="footnote">
+<a name="footnote_A2-1-2" id="footnote_A2-1-2"></a>
+<a href="#fnanchor_A2-1-2">[A2-1-2]</a>
+ Even the remarkable Florentine pamphlet of 1454 (<i>Jablonowski's</i>
+ prize essay of 1878, app. Beilage, 4) complains of the decrease of
+ industry principally on account of the diminution of money caused thereby.
+ "Wealth is money," says <i>Ernestine</i>, essay of 1530, on the coin, and
+ explains the smaller wealth of the silver-country, Saxony, as compared
+ with England, France, Burgundy and Lombardy, by the greater exportation of
+ commodities of these countries, by means of which they draw the silver of
+ Saxony to themselves. (<i>Roscher</i>, Geschichte, I, 103.)
+ <i>Bornitz</i>, Theorie wie sich der Staat diesen <i>nervus rerum</i> in
+ grösster Menge verschafft: De Nummis (1608), II, 4, 6, 8. <i>A. Serra</i>,
+ Sulle Cause, che possono far abbondare un Regno di Monete (1613), places
+ excess of gold and silver and poverty as diametrical opposites, at the
+ head of his work. <i>Hörnigk</i>, Oesterreich über Alles, wann es nur will
+ (1684), says that it is "better to give two dollars which remain in the
+ country for a commodity, than only one dollar which goes out of the
+ country" (ch. 9). According to <i>Schröder</i>, Fürstliche Schatz- und
+ Rentkammer (1686), the export of commodities is a blessing only "when we
+ can turn them into silver through our neighbors." (LXX, 12.) Even
+ <i>Locke</i> held similar views (Considerations of the Consequences of the
+ Lowering of Interest, 1691. Further Considerations concerning Raising the
+ Value of Money, 1698). On <i>Davenant's</i> inconsistency in this respect,
+ compare <i>Roscher</i>, Geschichte der Englischen Volkswirthschaftslehre,
+ 110 ff. The quantity of money remaining the same, a country grows neither
+ richer nor poorer (Christ. Wolff, Vernünftige Gedanken vom
+ gesellschaftlichen Leben, 1721, § 476). <i>J. Gee</i>, Trade and
+ Navigation of Great Britain considered (1730), bewails the folly of those
+ to whom "money is a commodity like other things, and also think themselves
+ never the poorer for what the nation daily exports," (p. 11). <i>Justi</i>,
+ von Manufacturen und Fabriken (1759 seq.), considers it the principal
+ object of industry simply to prevent the outflow of money. Similarly,
+ <i>Pfeifer</i>, Polizeiwissenschaft (1779), II, 286. Even Frederick the
+ Great considered it "true and obvious" that "a purse out of which money is
+ taken every day, and into which nothing is put in turn, must soon become
+ empty." (Œuvres, VI, 77).</p>
+
+ <p class="footnote"> <a name="footnote_A2-1-3" id="footnote_A2-1-3"></a>
+ <a href="#fnanchor_A2-1-3">[A2-1-3]</a>
+ The thirst for gold which, in the sixteenth and seventeenth centuries,
+ drove so many emigrants to the western Eldorado, reminds one, by reason of
+ its enthusiasm, of the crusades to the Holy Land. The striving after the
+ making of gold which the emperors Rudolph II., Ferdinand III., Leopold I.,
+ Frederick I. of Prussia, Christian IV. of Denmark, Christian II. and
+ Augustus the Strong of Saxony, Heinrich Julius of Braunschweig, Frederick
+ of Würtemberg, harbored, and also the Silesian and Brandenburg princes
+ even during the Hussite war (<i>Riedel</i>, Cod. Dipl. Brandenb., II, 4,
+ 151), was, to a great extent, misplaced philosophy; men went in search of
+ the <i>materia universalissima</i>,<a name= "fnanchor_TN123" id=
+ "fnanchor_TN123"></a><a href= "#footnote_TN123" class= "fnanchor">[TN
+ 123]</a> the <i>spiritus universalis</i>, from which all that is receives
+ its <i>esse et fieri</i>, the universal elixir, at once the life-power of
+ man, the universal medicine and maturing principle of natural bodies.
+ (<i>Roscher's</i> Gesch., I, 230.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-1-4" id="footnote_A2-1-4"></a>
+ <a href="#fnanchor_A2-1-4">[A2-1-4]</a>
+ <i>Schröder</i> justifies the little estimation in which he holds internal
+ commerce by saying that "a country may indeed grow and become powerful by
+ its means, but cannot gain in wealth;" just as a dress embroidered with
+ pearls is not made more costly by taking the pearls from the cuffs and
+ putting them upon the cape. (F. Schatz- und Rentkammer, XXIX, 3.)
+ According to the Fredrickian theorizer, <i>Philippi</i>, "internal trade
+ scarcely deserves the name of commerce." (Vergröss. Staat, 1759, ch. 6.)
+ <i>Sir J. Steuart</i> still teaches that an isolated state may, indeed, be
+ happy, but that it can grow rich only through foreign trade and mining.
+ (Principles, II, ch, 13.) The same fundamental thought finds expression in
+ the title of <i>Th. Mun's</i> celebrated book: England's Treasure by
+ Forraign Trade, or the Balance of our Forraign Trade is the Rule of our
+ Treasure (1664).</p>
+
+ <p class="footnote"> <a name="footnote_A2-1-5" id="footnote_A2-1-5"></a>
+ <a href="#fnanchor_A2-1-5">[A2-1-5]</a>
+ <i>Il est claire qu'un pays ne peut gagner, sans qu'un autre perde, et
+ qu'il ne peut vaincre sans faire des malheureux</i> (<i>Voltaire</i>,
+ Dict. phil., art. Patrie). Even <i>Verri</i> was, in his earlier period,
+ of the opinion: <i>ogni vantaggio di una nazione net commercio</i><a name=
+ "fnanchor_TN124" id= "fnanchor_TN124"></a><a href= "#footnote_TN124"
+ class= "fnanchor">[TN 124]</a> <i>porta un danno ad un altra nazione; lo
+ studio del commercio è una vera guerra</i> (Opuscoli, 335).</p>
+
+ <p class="footnote"> <a name="footnote_A2-1-6" id="footnote_A2-1-6"></a>
+ <a href="#fnanchor_A2-1-6">[A2-1-6]</a>
+ Even in 1761, the learned <i>Mably</i> could say: <i>la défense de
+ transporter les espèces d'or et d'argent est générale dans tous les états
+ de l'Europe ... il n'y a point de voie moins sensée</i> (Droit public, II,
+ 365).</p>
+
+ <p class="footnote"> <a name="footnote_A2-1-7" id="footnote_A2-1-7"></a>
+ <a href="#fnanchor_A2-1-7">[A2-1-7]</a>
+ The obstacles placed in the way of importation by governments originated,
+ in great part, from views entertained on sumptuary legislation; in that of
+ exportation, from a desire to prevent a scarcity of certain articles, as
+ may be clearly seen in <i>Patricius</i> (De Inst. Reipublic., V, 10, I,
+ 8), and even in <i>Sully</i> (Mémoires, XI, XII, XIII, but especially
+ XII), <i>Bornitz</i>, <i>Besold</i>, <i>Klock</i> and <i>v.
+ Seckendorf</i>. (Compare <i>Roscher</i>, Gesch., I, 191, 202, 215, 247.)
+ But the mercantilistic germs show themselves even in <i>Hutten</i> and
+ <i>Luther</i>. (<i>Roscher</i>, I, 44, 63.) The advance made between the
+ police ordinance of the empire of 1530 and that of 1548, is very
+ remarkable in this respect. The mercantile theory of duties appears very
+ systematically elaborated even in <i>J. Bodinus</i>, De Republica, 1577,
+ VI, 2; in Germany in <i>Hörnigk</i>, Oesterreich über Alles, ch. 9.</p>
+
+ <p class="footnote"> <a name="footnote_A2-1-8" id="footnote_A2-1-8"></a>
+ <a href="#fnanchor_A2-1-8">[A2-1-8]</a>
+ The English jealousy of Holland is represented especially by <i>Sir W.
+ Raleigh</i> (?), Observations touching Trade and Commerce with the
+ Hollander and other nations, 1603, Works, III, 31 ff.; <i>Sir J.
+ Child</i>, A new Discourse of Trade (1690), and <i>Sir W. Temple</i>,
+ Observations upon the U. Provinces (1672). Compare <i>Roscher</i>, Z.
+ Gesch. der englischen V. W. Lehre, p. 31 ff., 125 ff. The English jealousy
+ of France: <i>Sam. Fortrey</i>, England's Interest and Improvement (1663).
+ <i>R. Coke</i>, A Treatise, wherein is demonstrated that the Church and
+ State of England are in equal Danger with its Trade (1671), and the
+ anonymous, Britannia languens (1680). <i>Per contra</i>, especially the
+ work: England's Greatest Happiness, wherein it is demonstrated that a
+ great Part of our Complaints is causeless (1677). Here we find chapters
+ with the title: To export Money our great Advantage; the French Trade a
+ profitable Trade; Multitudes of Traders a great Advantage. <i>Petty</i>
+ gave the best solution to the question in dispute, in his posthumous
+ Political Arithmetic concerning the Value of Lands, etc. <i>Hörnigk</i>
+ would enlist his service in the cause of the jealousy against France,
+ immediately after the disgraceful defeats which Germany in 1680 ff.
+ suffered in the midst of peace, by Louis XIV. Concerning smaller works of
+ the same period and in the same direction, see <i>Roscher's</i> Gesch., I,
+ 299 seq.</p>
+
+ <p class="footnote"> <a name="footnote_A2-1-9" id="footnote_A2-1-9"></a>
+ <a href="#fnanchor_A2-1-9">[A2-1-9]</a>
+ Even <i>Peter Martyr</i> considered the colonization of countries which
+ yielded the same products as the mother country of no advantage (Ocean,
+ Dec., VIII, 10). On Spanish maps the most flourishing portions of America
+ at present are designated as <i>tierras de ningun provecho</i>. And the
+ English for a long time, ascribed value to their New England possessions,
+ so far as the mother country was concerned, only to the extent it was
+ possible to provide the West Indies from that quarter with corn, meat and
+ wood. (<i>Roscher</i>, Kolonien, p. 262.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-1-10" id="footnote_A2-1-10"></a>
+ <a href="#fnanchor_A2-1-10">[A2-1-10]</a>
+ Compare <i>Botero</i>, Ragion di Stato (1591); <i>Law</i>, Money and Trade
+ (1705), p. 19 ff.; and <i>Verri</i>, Opuscoli, pp. 325, 333. Meditazioni
+ (1771), cap. 19.</p>
+
+ <p class="footnote"> <a name="footnote_A2-1-11" id="footnote_A2-1-11"></a>
+ <a href="#fnanchor_A2-1-11">[A2-1-11]</a>
+ Thus <i>Child</i>, spite of all his esteem for the discoverers of the
+ balance-problem, calls attention to cases in which exports suffer so much
+ waste (<i>Abgang</i>), or imports are sold so advantageously, that an
+ apparently favorable balance made a people poorer, and an apparently
+ unfavorable one, richer. From the value of the imported commodities the
+ self-earned freight has to be deducted. Countries like Ireland, many
+ colonies, etc., have a preponderance of exportations, because they, by
+ means of the same, pay a rent to absent capitalists or to landowners. (p.
+ 312 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-1-12" id="footnote_A2-1-12"></a>
+ <a href="#fnanchor_A2-1-12">[A2-1-12]</a>
+ <i>Mun</i> admits that, for instance, the East Indian trade makes England
+ richer, although it causes the exportation of much English money. But the
+ exporter of money who, in exchange for it, brings back reëxportable
+ commodities, should be compared to the sower. (Ch. 4.) Similarly, <i>C.
+ Roberts</i>, The Treasure of Trafficke (1641), and even <i>A. Serra</i>,
+ III, 2. According to <i>Child</i>, the loss in the East Indian trade is
+ compensated for chiefly by this, that England obtains there the saltpeter
+ it needs to satisfy its demand, and that the ships engaged in that trade
+ are peculiarly well fitted for war. (l. c.) <i>Saavedra Faxardo</i>, for
+ similar reasons, declared the discovery of America to be a misfortune.
+ (Idea Principis Christiani politici, 1649, Symb., 68 seq.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-1-13" id="footnote_A2-1-13"></a>
+ <a href="#fnanchor_A2-1-13">[A2-1-13]</a>
+ Thus <i>Law</i>, <i>Dutot</i>, <i>Darjes</i> and <i>Büsch</i>. Even the
+ violent opponent of the mercantile system, <i>Boisguillebert</i>, could
+ not entirely escape this view. Compare vol. I, § 96.</p>
+
+ <p class="footnote"> <a name="footnote_A2-1-14" id="footnote_A2-1-14"></a>
+ <a href="#fnanchor_A2-1-14">[A2-1-14]</a>
+ This is true, especially of the protectionist weekly paper: British
+ Merchant or Commerce preserved (1713 ff.), in the contest with the weekly
+ Tory paper edited by <i>Defoe</i>: Mercator or Commerce retrieved, which
+ Charles King systematized and published anew in 1721. Later <i>Ulloa</i>:
+ Noticias Americanas (1772), cap. 12. <i>Adam Smith</i> also concedes that
+ many of the best writers on commerce, at the beginning of their books,
+ allow that the wealth of a country consists not only in gold and silver,
+ but also in goods of every description; but that further on they tend more
+ and more to forget this qualification of the meaning of wealth. (W. of N.,
+ IV, ch. 1.) Hence it is that, in recent text-books, so many are now called
+ adherents and now opponents of the mercantile system.</p>
+
+ <p class="footnote"> <a name="footnote_A2-1-15" id="footnote_A2-1-15"></a>
+ <a href="#fnanchor_A2-1-15">[A2-1-15]</a>
+ Even <i>Colbert</i> says: nothing is more precious in a state than the
+ labor of men (Lettres, Instructions et Mémoires de C. publiés par P.
+ Clement, 1861 ff., II, 105). The great trade with foreign countries and
+ the small trade in the interior contribute equally to the welfare of
+ nations. (II, 548.) I would not hesitate to do away with all privileges,
+ the moment I found that greater or as great advantages attended their
+ abolition. (II, 694.) His duty-system of 1664 was a simplification, but
+ also an important diminution of his earlier chaotic tariff. (II, 787
+ ff.)</p>
+
+<p class="p2 center">SECTION II.<span class='pagenum'>[Pg 399]</span></p>
+
+<p class="center smaller">REACTION AGAINST THE MERCANTILE SYSTEM.</p>
+
+<p>The reaction against the mercantile theory of the balance of trade,
+which reached its height in Adam Smith, was based principally upon the
+following considerations:</p>
+
+<p>A. Precious-metal-money is a commodity like all other commodities, and
+therefore useful only for certain purposes. It is as little to the
+wealth-interest of a people, by means of a continually favorable balance,
+to import infinite quantities of the precious metals, as it is to its
+power-interest, by means of its commercial policy, to accumulate infinite
+stores of powder. The person who possesses other exchangeable goods will be
+as well able, in case of need, to obtain gold and silver therewith as to
+obtain powder.<a name= "fnanchor_A2-2-1" id="fnanchor_A2-2-1"></a><a
+href="#footnote_A2-2-1" class="fnanchor">[A2-2-1]</a> We part with no
+capital when <span class='pagenum'>[Pg 400]</span> we export the precious
+metals and import other commodities instead; we simply exchange thereby one
+form of capital for another.<a name= "fnanchor_A2-2-2" id=
+"fnanchor_A2-2-2"></a><a href= "#footnote_A2-2-2" class=
+"fnanchor">[A2-2-2]</a> The notion that the gain in trade is coincident
+with the balance of account paid in cash, is just as palpably false in the
+trade among nations as in trade among private persons.<a
+name="fnanchor_A2-2-3" id="fnanchor_A2-2-3"></a><a href="#footnote_A2-2-3"
+class="fnanchor">[A2-2-3]</a> It would be a decided hardship to most men,
+if they were to receive payment at once in money for all that they
+possessed: and the nation is made up of individuals.<a name=
+"fnanchor_A2-2-4" id="fnanchor_A2-2-4"></a><a href="#footnote_A2-2-4"
+class= "fnanchor">[A2-2-4]</a> And even the reasons which make payments in
+cash more uniformly desirable, in the case of private persons not engaged
+in mercantile pursuits, cease in the case of whole nations.<a name=
+"fnanchor_A2-2-5" id="fnanchor_A2-2-5"></a><a href="#footnote_A2-2-5"
+class= "fnanchor">[A2-2-5]</a></p>
+
+<p><span class='pagenum'>[Pg 401]</span>B. But a continual over-balance
+(<i>Ueberbilanz</i>) is not at all possible. Every relative increase of the
+amount of money must enhance the price of commodities, lower the value of
+money, and thus produce an exportation of money until a restoration of the
+level with other countries.<a name="fnanchor_A2-2-6" id=
+"fnanchor_A2-2-6"></a><a href= "#footnote_A2-2-6" class=
+"fnanchor">[A2-2-6]</a> The prohibitions of the exportation of money, so
+often resorted to, can avail nothing, because the precious metals are among
+the specifically most valuable goods; and because it is easier yet to
+smuggle them out of a country than to smuggle them into it.<a name=
+"fnanchor_A2-2-7" id="fnanchor_A2-2-7"></a><a href="#footnote_A2-2-7"
+class= "fnanchor">[A2-2-7]</a></p>
+
+<p>C. The signs by which the mercantile system supposed it could estimate
+the favorableness of the balance of trade are essentially deceptive.<a
+name="fnanchor_A2-2-8" id="fnanchor_A2-2-8"></a><a href="#footnote_A2-2-8"
+class="fnanchor">[A2-2-8]</a> We cannot, for instance, from the course of
+exchange, determine whether the payments made by us to foreign countries
+have been made for purchases, to absentees, etc., or as loans; and yet,
+according to the mercantilists, the latter are as useful to us as the
+former are injurious.<a name="fnanchor_A2-2-9" id="fnanchor_A2-2-9"></a><a
+href="#footnote_A2-2-9" class="fnanchor">[A2-2-9]</a> And even the most
+accurate tariff-record (<i>Zollregister</i>) of <span class='pagenum'>[Pg
+402]</span> the exportation and importation of commodities affords no
+guaranty<a name="fnanchor_A2-2-10" id="fnanchor_A2-2-10"></a><a href=
+"#footnote_A2-2-10" class="fnanchor">[A2-2-10]</a> that, in many instances,
+the rendering of the counter-value may not remain absent, by reason of
+bankruptcy, shipwreck, or the emigration of property.<a name=
+"fnanchor_A2-2-11" id="fnanchor_A2-2-11"></a><a href= "#footnote_A2-2-11"
+class="fnanchor">[A2-2-11]</a></p>
+
+<p>D. Every act of exchange is advantageous only because through it a
+greater value is received than the one parted with was. (?) Fortunately, in
+normal trade, where both parties satisfy a real want, and neither party is
+deceived, this is actually the case on both sides.<a name=
+"fnanchor_A2-2-12" id="fnanchor_A2-2-12"></a><a href= "#footnote_A2-2-12"
+class="fnanchor">[A2-2-12]</a> In accordance with all this,<a name=
+"fnanchor_A2-2-13" id="fnanchor_A2-2-13"></a><a href= "#footnote_A2-2-13"
+class="fnanchor">[A2-2-13]</a> Baudrillart is of opinion that the whole
+theory of the balance of trade no longer exists.</p>
+
+ <p class="footnote"> <a name="footnote_A2-2-1" id="footnote_A2-2-1"></a>
+ <a href="#fnanchor_A2-2-1">[A2-2-1]</a>
+ Even <i>Petty</i> and <i>North</i>, with their deep insight into the
+ nature and functions of money, could not possibly entertain the mercantile
+ theory of the balance of trade. <i>Petty</i> considers the exportation of
+ money useful, even when commodities are brought back in exchange for it,
+ and which are of greater value in the interior than the exported money.
+ (Quantulumcunque concerning Money, 1682.) According to <i>North</i>, no
+ one is richer simply because he has his property in the form of gold and
+ silver plate, etc.; he is even poorer, because he allows his goods to lie
+ in that shape unproductive. Hence the importation of money is, in itself,
+ not more advantageous than the importation of logs of wood; at most, the
+ difference that, in case of excess, it would be easier to get rid of the
+ money than of the wood, is of importance. Therefore, a state need never
+ care very anxiously for its supplies of money. A rich nation will never
+ suffer from a want of money. (Discourses upon Trade, 1691, pp. 11, 17.)
+ According to <i>Berkeley</i> (Querist, 1735, pp. 566 ff.), there is no
+ greater error than to measure the wealth of a nation by its gold and
+ silver. It is to the interest of a people to keep their money or to send
+ it off according as its industry is thereby promoted. <i>Quesnay</i>
+ declares it to be impossible that the exports of a country should be
+ permanently greater than its imports: <i>tout achat est vente et toute
+ vente est achat</i>.</p>
+
+ <p class="footnote"><i>Adam Smith</i> (W. of N., IV, 1) compares the
+ Spanish discoverers who inquired on every island, first of all, for gold,
+ to the Mongolians, whom <i>Rubruquis</i> (c. 32) was obliged to give
+ information to concerning the cattle of France: "of the two, perhaps the
+ Tartar nation was the nearest to the truth." Precious-metal-money may be
+ even more easily dispensed with than most other commodities, since, in
+ case of necessity, it can, by reason of its greater transportability be
+ readily obtained from without, and can also be supplied by exchange and by
+ credit. "Money makes but a small part of the national capital and always
+ the most unprofitable part of it.... Money necessarily runs after goods,
+ but goods do not always or necessarily run after money." <i>J. B. Say</i>
+ calls the exportation of money more advantageous than that of other
+ commodities, because the former is of use, not through its physical
+ qualities, but only through its value, and the value of the money which
+ remains behind correspondingly rises by reason of the exportation.
+ (Traité, I, ch. 17.) Compare especially <i>Bastiat</i>, Maudit Argent,
+ 1849.</p>
+
+ <p class="footnote"> <a name="footnote_A2-2-2" id="footnote_A2-2-2"></a>
+ <a href="#fnanchor_A2-2-2">[A2-2-2]</a>
+ Against <i>Ganilh</i>, Théorie de l'Economie politique, II, 200.</p>
+
+ <p class="footnote"> <a name="footnote_A2-2-3" id="footnote_A2-2-3"></a>
+ <a href="#fnanchor_A2-2-3">[A2-2-3]</a>
+ Even <i>Mun</i> had, in every balance of trade, distinguished three
+ persons who participated in it; the merchant might lose when the nation in
+ general gained, and <i>vice versa</i>; the king, with his duties, always
+ gained. (Ch. 7.) The British Merchant (p. 23) maintained even, that when
+ the merchant himself gains nothing and takes his back-freight
+ (<i>Rückfracht</i>) in money, his country gains the whole amount
+ thereof.</p>
+
+ <p class="footnote"> <a name="footnote_A2-2-4" id="footnote_A2-2-4"></a>
+ <a href="#fnanchor_A2-2-4">[A2-2-4]</a>
+ "Every individual is continually exerting himself to find out the most
+ advantageous employment for whatever capital he can command. It is his own
+ advantage, indeed, and not that of the society, which he has in view. But
+ the study of his own advantage, naturally, or rather necessarily, leads
+ him to prefer that employment which is most advantageous to the society."
+ (<i>Ad. Smith</i>, W. of N., IV, ch. 2.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-2-5" id="footnote_A2-2-5"></a>
+ <a href="#fnanchor_A2-2-5">[A2-2-5]</a>
+ For the reason that money, in international trade, for the most part,
+ loses its character as money, and appears more as a commodity.
+ Exhaustively in <i>Adam Smith</i> and <i>J. B. Say</i>, l. c. The English
+ state paid, during the French war of the Revolution, in subsidies to
+ foreign countries, £44,800,000; and yet, up to the end of 1797, imperial
+ loans and the payments of private individuals included, not as much as one
+ million in cash went out of the country. (<i>Rose</i>, Brief Examination
+ into the Increase of the Revenue of Great Britain, 1799.) When France paid
+ the five milliards to Germany, the plus value of English exportation to
+ Germany above the English importation thence rose from 274,000,000 (1869)
+ to 478,000,000 (1872), and the increase in the amount of French from
+ 39,400,000 (1869) to 131,700,000 (1873). The entire German under-balance
+ (<i>Unterbilanz</i>), <i>Soetbeer</i> (loc. cit.) estimates at 878,000,000
+ of marks.</p>
+
+ <p class="footnote"> <a name="footnote_A2-2-6" id="footnote_A2-2-6"></a>
+ <a href="#fnanchor_A2-2-6">[A2-2-6]</a>
+ Emphasized especially by <i>David Hume</i> who calls attention to the
+ seeking of its level by water. (Discourses: On the Balance of Trade.)
+ <i>J. B. Say</i> speaks of carriages, the increase of which over and above
+ the need of them must infallibly produce a reëxportation of them. (Traité,
+ I, ch. 17.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-2-7" id="footnote_A2-2-7"></a>
+ <a href="#fnanchor_A2-2-7">[A2-2-7]</a>
+ With all the severity of its export prohibitions, Spain, for centuries,
+ served as a medium to conduct the streams of American silver to the other
+ parts of Europe. As to how Spain, during the last third of the 18th
+ century, was overflowed by copper money, see <i>Campomanes</i>, Educación
+ popular, IV, 272.</p>
+
+ <p class="footnote"> <a name="footnote_A2-2-8" id="footnote_A2-2-8"></a>
+ <a href="#fnanchor_A2-2-8">[A2-2-8]</a>
+ <i>von. Schröder</i>, F. Schatz- und Rentkammer, XXVII, has a very
+ ingenuous faith in the rate of exchange and a tariff-record
+ (<i>Zollregister</i>); while <i>Child</i> had a much better insight into
+ the defects of these two criteria. (Disc. of Trade, p. 312 ff.) Compare
+ <i>Steuart</i>, Principles, III, 2, ch. 2.</p>
+
+ <p class="footnote"> <a name="footnote_A2-2-9" id="footnote_A2-2-9"></a>
+ <a href="#fnanchor_A2-2-9">[A2-2-9]</a>
+ Compare § 199. It was a discovery of <i>Locke's</i>, that borrowing from
+ foreign countries was advantageous in all those instances in which the
+ inland borrower earned more than the amount of his interest by means of
+ the loan. (Considerations, p. 9.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-2-10" id="footnote_A2-2-10"></a>
+ <a href="#fnanchor_A2-2-10">[A2-2-10]</a>
+ <i>Ségur</i>, Mémoires, II, 298, tells how the Russian officers of custom
+ were bribed by English merchants to represent the Russian imports from
+ England <i>under</i>, and the exports to England <i>above</i> the true
+ value. In addition to this, smuggling was carried on!</p>
+
+ <p class="footnote"> <a name="footnote_A2-2-11" id="footnote_A2-2-11"></a>
+ <a href="#fnanchor_A2-2-11">[A2-2-11]</a>
+ <i>J. B. Say</i> calculates from the English tariff-record
+ (<i>Zollregister</i>), from the beginning of the 18th century to 1798, an
+ excess of exports over imports of £347,000,000; and yet the highest
+ estimates of the amount of money actually in England, according to
+ <i>Pitt</i> and <i>Price</i>, gave only £47,000,000. (Traité, I, IV, 17.)
+ The Russian lists of exports and imports from 1742 to 1797, show a
+ favorable balance of 250,000,000 rubles; to which must be added 88,000,000
+ rubles taken from the mines during the same time. But it is notorious that
+ the stores of money diminished. <i>Storch</i>, Gemälde des russischen
+ Reiches, XI, 12.</p>
+
+ <p class="footnote"> <a name="footnote_A2-2-12" id="footnote_A2-2-12"></a>
+ <a href="#fnanchor_A2-2-12">[A2-2-12]</a>
+ Manuel, 310. <i>F. B. W. Herrmann</i> (Münch. gelehrte Anz. XXV, 540) also
+ declares the whole theory of the balance of trade wrong. According to
+ <i>Brauner</i>, Was sind Maut<a name= "fnanchor_TN125" id=
+ "fnanchor_TN125"></a><a href= "#footnote_TN125" class= "fnanchor">[TN
+ 125]</a> und Zollanstalten (1816), 51, it is "a mere fancy."</p>
+
+ <p class="footnote"> <a name="footnote_A2-2-13" id="footnote_A2-2-13"></a>
+ <a href="#fnanchor_A2-2-13">[A2-2-13]</a>
+ Recognized even by <i>Ch. Davenant</i>, On the probable methods of making
+ a People Gainers in the Balance of Trade (Works, II, p. 11).</p>
+
+<p class="p2 center">SECTION III.</p>
+
+<p class="center smaller">FURTHER REACTION AGAINST THE MERCANTILE SYSTEM.</p>
+
+<p>Simultaneously with this opposition, the theory of the international
+balance of trade underwent important refinements, a new and improved
+edition, so to speak, of old Colbertism.<a name="fnanchor_A2-3-1"
+id= "fnanchor_A2-3-1"></a><a href= "#footnote_A2-3-1" class=
+"fnanchor">[A2-3-1]</a> <span class='pagenum'>[Pg 403]</span> Each school
+is wont to estimate the favorableness of the balance according to the
+preponderance of that which they consider the most important element in a
+nation's economy. Thus the population-enthusiasts, after the middle of the
+18th century, distinguished the "balance of advantage" from the "merely
+numerical:" the former is favorable to the country which, by means of its
+exports, employs and feeds the greatest number of men; the latter to the
+country with a preponderating importation of money. And they call the
+former much more important than the latter.<a name="fnanchor_A2-3-2"
+id= "fnanchor_A2-3-2"></a><a href= "#footnote_A2-3-2" class=
+"fnanchor">[A2-3-2]</a> The great advance which this view constitutes over
+the old system lies chiefly in two points: that the number and employment
+of men are evidently, so far as the whole national economy and national
+life are concerned, a much more important element than the quantity of
+money in a country; and further, that now, at least, the possibility of a
+simultaneous profit on both sides is admitted.<a name= "fnanchor_A2-3-3"
+id= "fnanchor_A2-3-3"></a><a href= "#footnote_A2-3-3" class=
+"fnanchor">[A2-3-3]</a> The best writer in this direction, Jos. Tucker, is
+among the great-grand-parents of the Manchester theory of to-day!</p>
+
+<p><span class='pagenum'>[Pg 404]</span>A further advance was made by men
+who introduced the higher notions of nationality and of the stages of
+civilization into the theory of international trade. Thus, at about the
+same time, the socialistic J. G. Fichte, with his shut-in commercial state,
+and the romantic reactionary, Ad. Müller, with his organic whole of
+national economy.<a name="fnanchor_A2-3-4" id="fnanchor_A2-3-4"></a><a
+href="#footnote_A2-3-4" class="fnanchor">[A2-3-4]</a> Finally, Fr. List,<a
+name="fnanchor_A2-3-5" id="fnanchor_A2-3-5"></a><a href="#footnote_A2-3-5"
+class="fnanchor">[A2-3-5]</a> with his "National system of Political
+Economy," and his severe subordination of the mere "agricultural state" to
+the "agricultural, manufacturing and commercial state," acknowledges the
+favorableness of the balance in the nation which by means of the
+exportation of manufactured articles, the importation of the means of
+subsistence and of articles to be manufactured, demonstrates and promotes
+its higher stage of civilization.<a name="fnanchor_A2-3-6" id=
+"fnanchor_A2-3-6"></a><a href= "#footnote_A2-3-6" class=
+"fnanchor">[A2-3-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_A2-3-1" id="footnote_A2-3-1"></a>
+ <a href="#fnanchor_A2-3-1">[A2-3-1]</a>
+ Compare <i>Mengotti</i>: Il Colbertismo (prize essay of the Georgofili at
+ Florence), 1791. If, with <i>H. Leo</i>, we were to designate the whole
+ period from the issue of the struggles of the Reformation to the
+ preparations of the French Revolution as the "age of the mercantile
+ system," <i>Colbert</i> would be a very appropriate type of it.</p>
+
+ <p class="footnote"> <a name="footnote_A2-3-2" id="footnote_A2-3-2"></a>
+ <a href="#fnanchor_A2-3-2">[A2-3-2]</a>
+ Compare § 254. Here belong <i>Forbonnais, Necker, Tucker</i> (Important
+ Questions, IV, 11; V, 5; VII, 4; VIII, 5. Four Tracts, 1774, I, p. 36);
+ <i>Justi</i> in his middle period (<i>Roscher</i>, Gesch. der N. O. in
+ Deutschland, I, 451 ff.); but especially <i>Sonnenfels</i> (politische
+ Abhandlungen, 1777, Nr. 1), who sees the best sign of a favorable balance
+ in the increase of population. (Grundsätze, II, 333.) When Austria, for
+ 2,500,000, purchases diamonds <i>of</i> Portugal, and sells Portugal linen
+ to the amount of 2,000,000, it has the numerical balance against it, but
+ obtains the "balance of advantage." (II, 329 seq.) With an admixture of
+ physiocratism, this doctrine appears in <i>Cantillon</i>, Nature du
+ Commerce, 1755, p. 298 ff.; with an admixture of free trade, in
+ <i>Büsch</i>, Geldumlanf, V, 12.</p>
+
+ <p class="footnote"> <a name="footnote_A2-3-3" id="footnote_A2-3-3"></a>
+ <a href="#fnanchor_A2-3-3">[A2-3-3]</a>
+ <i>Justi</i>, Chimäre des Gleichgewichts der Handlung und Schiffahrt
+ (1759), supposes a gain on both sides in all commerce between nations.
+ Hence, no nation can attain to a flourishing trade in any way except it be
+ to the advantage of those with which it has to do. (p. 14 ff., 43.) Here,
+ it may be presumed, <i>Hume's</i> Essay, On the Jealousy of Trade,
+ exercised an influence. <i>Sonnenfels</i> distinguishes, in foreign trade,
+ five grades of advantage: 1, most advantageous, when finished commodities
+ are exported and cash money is imported; 2, when finished commodities are
+ exchanged for raw materials; 3, finished commodities against finished
+ commodities; 4, raw material against raw material; 5, raw material against
+ finished commodities. (Grundsätze, II, 202.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-3-4" id="footnote_A2-3-4"></a>
+ <a href="#fnanchor_A2-3-4">[A2-3-4]</a>
+ It is as necessary that every nation should constitute a separate
+ commercial body as that it should be a separate political and juridical
+ body. The person who asks: why should I not have commodities in all the
+ perfection in which they are made in foreign countries? might as well ask:
+ why am I not completely a foreigner? (<i>Fichte</i>, Geschloss.
+ Handelstaat, 1800: Werke, III, 476, 411.) <i>Ad. Müller</i> compares
+ universal freedom of trade to a universal empire, which will ever remain a
+ chimera. (Elemente der Staatskunst, 1809, I, 283.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-3-5" id="footnote_A2-3-5"></a>
+ <a href="#fnanchor_A2-3-5">[A2-3-5]</a>
+ <i>List</i> (Werke, II, 31 ff.) had, after 1818, recognized that a
+ <i>passive</i> balance for whole nations was possible, if they were not
+ able to cover their wants, supplied from abroad and then consumed, by
+ their income, but were obliged to make inroads on their national
+ capital.</p>
+
+ <p class="footnote"> <a name="footnote_A2-3-6" id="footnote_A2-3-6"></a>
+ <a href="#fnanchor_A2-3-6">[A2-3-6]</a>
+ <i>Ch. Ganilh</i>, who expects a real enrichment of a nation only from
+ foreign trade (Dictionnaire de l'E. P., 1826, p. 131), ascribes the most
+ favorable balance to the nation that exchanges dear labor against cheap;
+ that is, principally to a nation of tradesmen as contradistinguished from
+ a nation of agriculturists. (Theorie de l'E. P., 1822, II, 239 ff.)</p>
+
+<p class="p2 center">SECTION IV.<span class='pagenum'>[Pg 405]</span></p>
+
+<p class="center smaller">PARTIAL TRUTH OF THE MERCANTILE SYSTEM.</p>
+
+<p>But even among the successors of Hume and Smith, a deeper insight into,
+so to speak, the physics of money and of international trade must have led
+to the recognition of many a truth which the mercantile system had, indeed,
+badly formulated, insufficiently proved, but which it had, nevertheless, an
+inkling of. And, indeed, how frequently it happens that the progress of
+science proceeds from one one-sidedness, through another opposed but higher
+one-sidedness, to the all-sidedness which knows no prejudice!</p>
+
+<p>A. Precious-metal-money is, indeed, a commodity, but of all commodities,
+the most current, the most many-sided in its utility, the most economically
+energetic, and at the same time of peculiarly great durability.<a
+name="fnanchor_A2-4-1" id="fnanchor_A2-4-1"></a><a href="#footnote_A2-4-1"
+class="fnanchor">[A2-4-1]</a> Money-capital, far from being the least
+useful portion of a nation's capital, is rather one of its most important
+parts; and especially in the higher stages of civilization, where the
+division of labor has been most largely developed, is it peculiarly
+productive and indispensable.<a name="fnanchor_A2-4-2" id=
+"fnanchor_A2-4-2"></a><a href="#footnote_A2-4-2" class="fnanchor">[A2-4-2]
+</a> Here <span class='pagenum'>[Pg 406]</span> it is really more likely
+that the possessor of commodities may be wanting the wished for money, than
+that the possessor of money should be wanting in the wished for
+commodities. And, hence, the numerous half mystic expressions of the
+magical power of money, which have passed into literature from the common
+usage of the people, can be, by no means, considered mere errors.</p>
+
+<p>B. Just as little, can the impossibility of the preponderant importation
+of money for a long time, be asserted. Hume's rigid theory of a level, by
+no means, exactly corresponds with the reality. The precious metal which
+is, indeed, imported, but which does not subsequently enter into the
+circulation, need exert no influence whatever on the prices of commodities
+in general; and may, therefore, remain permanently in the country. Think
+only of the articles made of the precious metals, which minister to
+luxury,<a name= "fnanchor_A2-4-3" id= "fnanchor_A2-4-3"></a><a
+href="#footnote_A2-4-3" class="fnanchor">[A2-4-3]</a> of buried private
+treasure, of the treasures of the state, which are idly stored up; as well
+as of a portion at least of most cash on hand.<a name="fnanchor_A2-4-4"
+id= "fnanchor_A2-4-4"></a><a href= "#footnote_A2-4-4" class=
+"fnanchor">[A2-4-4]</a> <span class='pagenum'>[Pg 407]</span> From the
+other side, also, the over-balance or under-balance (<i>Ueber-oder
+Unterbilanz</i>) of a country may continue, a very long time, when its
+internal trade with its money-need is, in the first case, an increasing,
+and in the last, a decreasing one. So far, the preponderance of the
+importation of money may be called a favorable sign and the preponderance
+of the exportation of money an unfavorable one. And the person who thinks
+that a permanent preponderance of exports or imports is not at all possible
+in the way of commerce, overlooks the possibility of a very extensive
+national indebtedness.<a name="fnanchor_A2-4-5" id="fnanchor_A2-4-5"></a><a
+href="#footnote_A2-4-5" class="fnanchor">[A2-4-5]</a></p>
+
+<p>C. But a distinction should be made between the <i>balance of
+payments</i> and the <i>balance of trade</i> in the narrower sense of the
+expression.<a name= "fnanchor_A2-4-6" id= "fnanchor_A2-4-6"></a><a
+href="#footnote_A2-4-6" class="fnanchor">[A2-4-6]</a> In the case of the
+latter, to be complete, it is necessary to carry to the credit side of the
+account: 1, The exports of commodities; 2, the profit made by parties at
+home by realizing on (<i>Realisierung</i><a name= "fnanchor_TN126" id=
+"fnanchor_TN126"></a><a href= "#footnote_TN126" class= "fnanchor">[TN
+126]</a>) the exports in foreign countries; 3, the freight-profit made by
+parties at home on exports and imports, as well as in foreign carrying
+trade (<i>Zwischenverkehr</i>); 4, the sale of inland ships in foreign
+countries; 5, premiums and compensation for damage on account of maritime
+insurance from foreign countries. On the debit side, on the other hand, the
+corresponding items when foreigners have received from the home country, as
+in the case of imports, etc. To obtain the general payment-balance, we have
+still, in addition, on the credit side: 1, The profit from home
+participation in enterprises in foreign countries and the transfers of
+capital originating therefrom; 2, the interest and repayments of
+money-capital <span class='pagenum'>[Pg 408]</span> loaned in foreign
+countries; 3, the sale of stocks (<i>Effecten</i>) to foreign countries as
+well as new loans to which the home country makes in foreign parts; 4,
+remittances from foreign countries to foreigners sojourning in the home
+country, and money brought with them by travelers and emigrants; 5,
+inheritances, pensions and extraordinary payments from foreign countries.
+Then, too, on the debit-side, belong the corresponding counter-items.<a
+name="fnanchor_A2-4-7" id="fnanchor_A2-4-7"></a><a href= "#footnote_A2-4-7"
+class="fnanchor">[A2-4-7]</a> If we, in this way, take a survey of the
+whole world, we shall perceive a treble current of the precious metals. The
+first and most regular goes, in long lines, from mining countries, over to
+the commercial countries of the world, and distributes the newly acquired
+gold and silver as commodities according to the wants of the coinage, of
+manufactures, etc. The second oscillates, as it were, in short waves from
+country to country, in order to adjust the <i>plus</i> or <i>minus</i> for
+the time being of payment-balances. Lastly, regular sudden currents, with
+slow subsequent counter-currents, when single economic districts require to
+make extraordinary drafts or shipments of the precious metals, by reason of
+bad harvests, war, a disturbed double standard, etc.</p>
+
+<p>D. Since international indebtedness has so much increased, precisely the
+richest nations may have the greatest regular excess of exports over
+imports; partly because of the great amount of capital, etc., which they
+possess in foreign countries; partly because of the great development of
+their system of credit in the interior, by means of which they find
+substitutes for so great a part of the metallic currency.<a name=
+"fnanchor_A2-4-8" id="fnanchor_A2-4-8"></a><a href="#footnote_A2-4-8"
+class= "fnanchor">[A2-4-8]</a></p>
+
+ <p class="footnote"> <a name="footnote_A2-4-1" id="footnote_A2-4-1"></a>
+ <a href="#fnanchor_A2-4-1">[A2-4-1]</a>
+ <i>Locke</i>, Civil Government (1691), § 49, seq., emphasizes this
+ durability of the value-preserving metallic money, in opposition to the
+ perishable articles of consumption, as a principal element in the
+ development of private property and of economic civilization. But even
+ <i>Petty</i> ascribes to the precious metals a higher quality as wealth
+ than to any other commodity, for the reason that they are less perishable,
+ and possess value always and everywhere. Hence, he esteems foreign trade
+ more highly than inland trade, and would have those businesses which
+ import the precious metals protected more than others against taxation.
+ (Several Essays, 1682, p. 113, 126, 159.) <i>Adam Smith</i> also
+ recognizes this, at least so far as intermediate trade is concerned. (W.
+ of N., IV, ch. 6.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-4-2" id="footnote_A2-4-2"></a>
+ <a href="#fnanchor_A2-4-2">[A2-4-2]</a>
+ Even <i>Rau</i>, in his additions to <i>Storch</i> (1820), p. 397,
+ concedes the peculiarly charming, vivifying power, which money possesses
+ to an extent greater than any other commodity. Well distinguished whether
+ the money-want of a country is already fully satisfied or not. (Ansichten
+ der Volkswirthschaft, 1821, p. 157.) <i>Carey</i> exaggerates when he
+ calls money the cause of the movement in society, out of which force is
+ produced, what coal is to the locomotive, or food to the animal body
+ (Principles of Social Science, ch. XXXII, 5), or the only want of life for
+ which there is a universal demand. (Ch. XXXIII, 1.) But he rightly calls
+ it the "instrument of association." Excellent demonstration, as to how, at
+ the sudden outbreak of a war, of a revolution, etc., all those who have
+ money on hand, even when they had previously obtained it while peace still
+ prevailed, in the form of a loan, are in an infinitely better position
+ than the owners of the otherwise most useful commodities. (Ch. XXXVII,
+ 12.) Earlier yet, <i>P. Kaufmann</i> placed the "principal character of
+ money" in this, that it was "most perfect property (<i>Vermögen</i>);" and
+ he calls its quality as a commodity, philosophically considered, in
+ question; and judges the balance of trade according to this, that in
+ commodities, interest-yielding as well as dead capital is exported, but in
+ money-capital, which is always gain-engendering. (Untersuchungen im
+ Gebiete der politischen Oekonomie, 1829, I, 4, 74, 80.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-4-3" id="footnote_A2-4-3"></a>
+ <a href="#fnanchor_A2-4-3">[A2-4-3]</a>
+ In England, <i>Patterson</i> estimates the regular additional importation
+ (<i>Mehreinfuhr</i><a name= "fnanchor_TN127" id= "fnanchor_TN127"></a><a
+ href= "#footnote_TN127" class= "fnanchor">[TN 127]</a>) of money at from
+ four to five millions sterling, of which the greater part is devoted to
+ purposes of luxury. (Statist. Jrl., 1870, 217.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-4-4" id="footnote_A2-4-4"></a>
+ <a href="#fnanchor_A2-4-4">[A2-4-4]</a>
+ <i>Fullarton's</i> view (Regulation of Currencies, 1844) suffers from
+ exaggeration. <i>Knies</i>, Geld and Credit, II, 285, very well shows that
+ the "hoards" are by no means mere idle stores, and that, therefore, their
+ void produced by the exportation of money must be soon filled up again.
+ <i>Adam Smith</i>, even, may be considered a predecessor of
+ <i>Fullarton</i>. (W. of N., ch. 2, p. 250, Bas.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-4-5" id="footnote_A2-4-5"></a>
+ <a href="#fnanchor_A2-4-5">[A2-4-5]</a>
+ Even <i>Büsch</i> (Werke, XIII, 26) says that the under-balance
+ (<i>Unterbilanz</i>) of the Scotch vis-a-vis of England was for a long
+ time made up in two ways, by the marriage of wealthy English heiresses and
+ by Scotch bankrupts. Thus the troops, who, in the 17th century, were
+ traded over to France, and in the 18th, to England by German princes,
+ brought the money, in part, back again, which was exported by the
+ unfavorable balance. According to <i>List</i>, the exported metals, after
+ they have risen in price with us, flow back to us again; not, however, as
+ exchangeable articles, but in the form of a loan, by which it is made
+ possible for us to dispose of them again, and again to receive them in
+ this shape. (Werke, II, 37.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-4-6" id="footnote_A2-4-6"></a>
+ <a href="#fnanchor_A2-4-6">[A2-4-6]</a>
+ Thus even <i>J. Steuart</i>, Principles, IV, 2, ch. 8.</p>
+
+ <p class="footnote"> <a name="footnote_A2-4-7" id="footnote_A2-4-7"></a>
+ <a href="#fnanchor_A2-4-7">[A2-4-7]</a>
+ Compare <i>Soetbeer</i> in <i>Hirth's</i> Annalen des deutschen Reiches,
+ 1875, p. 731 ff.</p>
+
+ <p class="footnote"> <a name="footnote_A2-4-8" id="footnote_A2-4-8"></a>
+ <a href="#fnanchor_A2-4-8">[A2-4-8]</a>
+ British Europe had from 1854 to 1863, a yearly surplus amount
+ (<i>Mehrbetrag</i>) of imports of at least 266, and at most 1190 millions
+ of marks, in the average, 764 millions; from 1864 to 1873, of at least 802
+ millions, and at most 1388 millions, an average of 1104 millions; whereas,
+ on the other hand, Australia, besides its great exportation of gold,
+ exhibits a great excess of exports of commodities over imports. France,
+ too, from 1867 to 1869, had attained to an average surplus importation
+ (<i>Mehreinfuhr</i>) of 211 million marks; which is related to the fact
+ that, according to <i>L. Say</i>, it received about from 600 to 700
+ million francs a year in interest from foreign countries; and that from
+ 200 to 300 million francs were expended by foreigners, etc., traveling in
+ France. Similarly, in the case of governing countries vis-a-vis of their
+ dependencies; whence even the old mercantilists entertained no doubt of
+ the enrichment of the former. Thus France, in 1787 ff., had a yearly
+ importation of 613 million livres, and an exportation of 448 millions,
+ because the colonies sent to France 150 millions more than they drew
+ therefrom. (<i>Chaptal</i>, De l'Industrie, Fr., I, 134.) Hungary, from
+ 1831 to 1840, had a yearly exportation of 46 million florins to Austria,
+ and an importation of only 30 millions. (<i>List</i>, Zollvereinsblatt.
+ 1843, No. 49) Algiers drew from France in 1844 to the amount of 83 million
+ francs, and found a market there for only 8 millions (Moniteur), which no
+ one will consider an enrichment of France. The great preponderance of
+ French exports in 1831, 1848 and 1849, of Austrian, between 1874 and 1876,
+ a sign of diminished purchasing capacity! When England, in March, 1877,
+ imported to the amount of £35,230,000, and exported to the amount of
+ £16,921,000 (against £27,451,000 and £17,739,000 in March, 1876), the
+ Economist sees therein a sign that many outstanding debts were called
+ in.</p>
+
+<p class="p2 center">SECTION V.<span class='pagenum'>[Pg 409]</span></p>
+
+<p class="center smaller">THE ADVANTAGES OF INTERNATIONAL TRADE.</p>
+
+<p>The truth that no exportation is permanently possible without
+importation, and that, in international trade, also, both sides better
+their condition, was clear to the Italians in the fifteenth century, and in
+the sixteenth and seventeenth centuries to the Netherlanders.<a
+name="fnanchor_A2-5-1" id="fnanchor_A2-5-1"></a><a href="#footnote_A2-5-1"
+class="fnanchor">[A2-5-1]</a></p>
+
+<p>Every nation can, through its instrumentality, for the first time,
+acquire not only those commodities which nature entirely refuses to it, but
+such also which it can itself produce only at a great cost.<a name=
+"fnanchor_A2-5-2" id="fnanchor_A2-5-2"></a><a href="#footnote_A2-5-2"
+class= "fnanchor">[A2-5-2]</a> And here it is not so much the absolute
+costs <span class='pagenum'>[Pg 410]</span> of production as the
+comparative which are decisive.<a name= "fnanchor_A2-5-3" id=
+"fnanchor_A2-5-3"></a><a href= "#footnote_A2-5-3" class=
+"fnanchor">[A2-5-3]</a> The country A may be superior to the country B in
+all kinds of productiveness; but when this superiority for the group of
+commodities <i>x</i> amounts to only 50 per cent., and for the group
+<i>y</i>, on the other hand, to 100 per cent., it is to the interest of A,
+which possesses only a limited quantity of the factors of production, to
+produce a surplus of the commodities <i>y</i>, and to exchange that surplus
+against what it wants of <i>x</i>.<a name="fnanchor_A2-5-4" id=
+"fnanchor_A2-5-4"></a><a href= "#footnote_A2-5-4" class=
+"fnanchor">[A2-5-4]</a> B, also, would willingly agree to this, even if it
+were not to get the commodities <i>y</i> entirely as cheap as A might
+supply them, but still decidedly cheaper than their production would cost
+in B itself. But, if both parties derive advantage from international
+trade, there is no necessity whatever that this advantage should be equally
+great on both sides. As in every struggle over prices, the gain here also
+is greatest on the side of the nation whose desire to hold fast to their
+own commodities is farthest <span class='pagenum'>[Pg 411]</span> from
+being outweighed by the want of the foreign commodity, and which, at the
+same time, employs most productively the equivalent received in imports in
+exchange for its exports.<a name= "fnanchor_A2-5-5" id=
+"fnanchor_A2-5-5"></a><a href= "#footnote_A2-5-5" class=
+"fnanchor">[A2-5-5]</a> Yet, in estimating this productiveness, it is
+necessary to take the whole national life into consideration.<a
+name="fnanchor_A2-5-6" id= "fnanchor_A2-5-6"></a><a href="#footnote_A2-5-6"
+class= "fnanchor">[A2-5-6]</a></p>
+
+<p>The international distribution of the precious metals is subject to the
+same law. These, also, are procured most cheaply by the nation which,
+directly or indirectly (by the production of counter values wished for by
+the whole world), employs the most productive economic activity upon them,
+and at the same time (it may be by especially well developed credit), is in
+the least urgent need of them.<a name="fnanchor_A2-5-7" id=
+"fnanchor_A2-5-7"></a><a href= "#footnote_A2-5-7" class=
+"fnanchor">[A2-5-7]</a> Therefore, on the whole, their value in exchange is
+wont to be lowest among the richest <span class='pagenum'>[Pg 412]</span>
+and most highly cultivated nations.<a name="fnanchor_A2-5-8" id=
+"fnanchor_A2-5-8"></a><a href= "#footnote_A2-5-8" class=
+"fnanchor">[A2-5-8]</a> Such a relative cheapness of gold and silver is not
+only a symptom of economic power, but considering the preëminent energy of
+these very commodities, at the same time, a means to procure most foreign
+commodities with a smaller expenditure of one's own forces.<a name=
+"fnanchor_A2-5-9" id= "fnanchor_A2-5-9"></a><a href="#footnote_A2-5-9"
+class= "fnanchor">[A2-5-9]</a> Hence, a great change in the distribution,
+hitherto usual, of the precious metals, produced, possibly, by great
+advances made in production here, or by an increase in consumption there,
+or by means of commercial prohibitions, etc., may be just as advantageous
+to the country which receives more as hurtful for the country which pays
+more;<a name= "fnanchor_A2-5-10" id= "fnanchor_A2-5-10"></a><a
+href="#footnote_A2-5-10" class="fnanchor">[A2-5-10]</a> and both, all the
+more as the <span class='pagenum'>[Pg 413]</span> revolution in prices
+enhances the most productive elements of the nation there, and here the
+most unproductive.<a name="fnanchor_A2-5-11" id="fnanchor_A2-5-11"></a><a
+href="#footnote_A2-5-11" class="fnanchor">[A2-5-11]</a> Hence, even when it
+cannot, in general, be said that one branch of commerce, carried on in a
+normal manner, should necessarily remain behind another in economic
+productiveness, those which have nothing to fear from a disturbance of
+their balance by the measures of foreign states are distinguished by the
+greatest security, and those are capable of the greatest growth which
+exchange articles to be manufactured (<i>Fabrikanden</i>), and the means of
+subsistence against ordinary manufactured articles.<a name=
+"fnanchor_A2-5-12" id="fnanchor_A2-5-12"></a><a href= "#footnote_A2-5-12"
+class="fnanchor">[A2-5-12]</a> <a name= "fnanchor_A2-5-13"
+id="fnanchor_A2-5-13"></a> <a href= "#footnote_A2-5-13"
+class="fnanchor">[A2-5-13]</a></p>
+
+ <p class="footnote"> <a name="footnote_A2-5-1" id="footnote_A2-5-1"></a>
+ <a href="#fnanchor_A2-5-1">[A2-5-1]</a>
+ <i>M. Sanudo</i>, in Muratori Scriptores, XXII, 950 ff., and the
+ Netherland decree of February 3, 1501, in the Journal des Economistes,
+ XIII, 304. Then, <i>Salmasins</i>, de Usuris (1638), p. 197. <i>Child</i>,
+ <i>Becher</i> and <i>Temple</i> had all made their studies in Holland.
+ Compare, besides, even <i>Plato</i>, De Rep., II, 371.</p>
+
+ <p class="footnote"> <a name="footnote_A2-5-2" id="footnote_A2-5-2"></a>
+ <a href="#fnanchor_A2-5-2">[A2-5-2]</a>
+ <i>J. S. Mill</i> rightly calls it a remnant of the mercantile system that
+ <i>Adam Smith</i> still saw the principal utility of foreign trade in the
+ market for the home production which is thereby increased. But this
+ utility is to be looked for not so much in what is exported as in what is
+ imported. (Principles, II, ch. 17, 4.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-5-3" id="footnote_A2-5-3"></a>
+ <a href="#fnanchor_A2-5-3">[A2-5-3]</a>
+ Compare <i>v. Mangoldt</i>, Grundriss der V. W. L., 185 ff. By the
+ English, the discovery of this truth is attributed to <i>Ricardo</i>,
+ Principles, ch. 7. Compare the further development in <i>J. Mill</i>,
+ Elements (1821), III, 4, 13 seq.; <i>Torrens</i>, The Budget (1844) and
+ <i>J. S. Mill</i>, Essays on some unsettled Principles of Political
+ Economy (1844), No. 1, and Principles, III, ch. 18 ff. But even
+ <i>Jacob</i>, Grundsätze der Polizeigesetzgebung (1809, p. 546 ff.), was
+ acquainted with the truth that generally both sides gained, but the one
+ party, possibly more than the other. According to <i>Lotz</i>, Revision
+ (1811), I, 161, the gain and loss of each party rises and falls in
+ proportion to the difference between the degrees of value which each
+ party, so far as he is himself concerned, attaches to the goods given and
+ the goods received. And even <i>Cantillon</i>, Nature du Commerce (1155),
+ p. 226, 369 ff., had a presentiment of the reason why countries having a
+ low value in exchange of money can continue notwithstanding to sell in
+ foreign countries. And so, too, <i>Hume</i>, Essays (1752), On Interest,
+ who, without looking through the spectacles of the mercantile system,
+ perceived that countries with a flourishing trade must necessarily draw
+ much gold and silver to themselves. Recently, <i>Cairnes</i> has shown by
+ practical examples that Australia imports Irish butter and Norwegian wood,
+ and the Barbadians meat and flour from New York, although both might
+ themselves produce such articles cheaper. (Essays, etc., 1873. Leading
+ Principles, 1874, p. 379.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-5-4" id="footnote_A2-5-4"></a>
+ <a href="#fnanchor_A2-5-4">[A2-5-4]</a>
+ Thus a Kaulbach might more expertly ornament his own door and window
+ frames than an ordinary room-painter, but does not do so, because he can
+ employ his time to better advantage.</p>
+
+ <p class="footnote"> <a name="footnote_A2-5-5" id="footnote_A2-5-5"></a>
+ <a href="#fnanchor_A2-5-5">[A2-5-5]</a>
+ Even <i>Law</i>, Money and Trade, p. 31, was of opinion, that when a
+ nation consumes its imports which are greater than its exports, it grows
+ poorer, not in consequence of the importation, but of the consumption.
+ <i>Quesnay</i> calls attention to the <i>plus on moins de profit qui
+ résulte des marchandises mêmes que l'on a vendues et de celles que l'on a
+ achetées. Souvent la perte est pour la nation qui reçoit un surplus en
+ argent, et cette perte se trouve au</i><a name= "fnanchor_TN128"
+ id="fnanchor_TN128"></a><a href= "#footnote_TN128" class="fnanchor">[TN
+ 128]</a> <i>préjudice de la distribution et de réproduction des
+ revenus</i>. (Max. génér., 24.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-5-6" id="footnote_A2-5-6"></a>
+ <a href="#fnanchor_A2-5-6">[A2-5-6]</a>
+ <i>Rau</i> distinguishes principally whether importation brings articles
+ of luxury or means of acquisition (<i>Erwerbstamm</i>) into the country.
+ (Ansichten der V. W., 163.) Similarly, <i>de Cazcaux</i>, Eléments
+ d'Economie privée et publique (1825), p. 188 ff. <i>Schmitthenner</i>,
+ Zwölf Bücher vom Staate (1839), I, 497. "A favorable balance of trade does
+ not make a people richer because they receive the metals for other values,
+ but because they produce and sell more than they purchase and consume; the
+ result of which naturally is that the difference must consist in values
+ capable of being capitalized." Kaufmann draws a distinction according as
+ the imported goods come into the country in the form of dead or
+ interest-bearing capital. He illustrates his view by the case of a peasant
+ who sells his seed-corn in order to purchase a finer hat with the
+ proceeds. (Untersuchungen, I, 96, 81 seq.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-5-7" id="footnote_A2-5-7"></a>
+ <a href="#fnanchor_A2-5-7">[A2-5-7]</a>
+ International trade makes imported commodities cheaper and exported
+ commodities dearer, but the aggregate of consumers gain more in the former
+ case than they lose in the latter, because they now enjoy the blessings of
+ the international division of labor. But, even with this general
+ enrichment, single classes of the people, and even the majority, may have
+ to suffer; as, for instance, when in the exchange of corn against iron,
+ the cheapening of the iron profits the people less than the consequent
+ dearness of corn injures them. (<i>Fawcett</i>, Manual, 391.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-5-8" id="footnote_A2-5-8"></a>
+ <a href="#fnanchor_A2-5-8">[A2-5-8]</a>
+ "Gold and silver are by the competition of commerce distributed in such
+ proportions amongst the different countries of the world as to accommodate
+ themselves to the natural traffic which would take place if no such metals
+ existed and the trade between countries were purely a trade of barter."
+ (<i>Ricardo</i>, Principles, ch. 7.) In most direct opposition to the
+ mercantile system, he represents the distribution of the precious metals
+ to be not the cause but the effect of national wealth. A nation rapidly
+ growing in wealth will obtain and keep a larger quota of the general
+ supply of gold and silver. (The high Price of Bullion, 1810.) On the other
+ hand, it depends on the one-sided abstraction with which <i>Ricardo</i>
+ loves to pursue certain assumptions, that every exportation of money is
+ made to signify a peculiar cheapness of money, and <i>vice versa</i>.
+ (Opposed by <i>Malthus</i>, Edinb. Rev., Febr., 1811.) <i>Carey's</i>
+ frequently repeated assertion, that gold and silver always flow towards
+ those markets where they are cheapest (Principles of S. Science, I, 150,
+ and passim), confounds cause and effect.</p>
+
+ <p class="footnote"> <a name="footnote_A2-5-9" id="footnote_A2-5-9"></a>
+ <a href="#fnanchor_A2-5-9">[A2-5-9]</a>
+ Compare § 126, and even <i>Kaufmann</i>, Untersuchungen, I, 75 seq.</p>
+
+ <p class="footnote"> <a name="footnote_A2-5-10" id="footnote_A2-5-10"></a>
+ <a href="#fnanchor_A2-5-10">[A2-5-10]</a>
+ Let us suppose that, hitherto, the English had supplied their demand for
+ wine from France, and paid therefor in commodities made of steel; and that
+ now France prohibits the importation of the latter and requires gold
+ instead. If the English take this gold out of their own circulation, the
+ value in exchange of the gold which remains to them rises; the prices of
+ all commodities fall, state debts and private debts become more
+ oppressive, etc. If, to avoid this, they send their steel wares, which
+ France has rejected, to California, to obtain gold there in exchange, they
+ find that California has as much of steel wares as it requires, and that
+ it can be induced to extend its consumption of them only by a
+ corresponding lowering of their price. But if, on the other hand, the gold
+ which has flowed towards France has produced a rise in the price of
+ commodities, and a decrease in the exportation of commodities; and has
+ then flowed out of the country, to Germany for instance; England may in
+ consequence be placed in a position to effect its payments for French wine
+ with the gold which its manufactured articles have been exchanged against
+ in Germany. But all this always supposes that the prices of commodities
+ have fallen in England and risen in other countries; that is, a changed
+ and, so far as England is concerned, an unfavorable distribution of the
+ precious metals&mdash;which is found in connection with a relatively
+ decreased productiveness of English labor. The English cost of production
+ may yet continue to be covered, notwithstanding; but, when it has been
+ diminished by a lowering of wages, interest, etc., the national wealth
+ suffers in consequence. Compare <i>Torrens</i>, Budget, p. 50 ff., who
+ precisely on this bases the greater security of trade between the mother
+ country and its colonies; and which also found expression in the Peel
+ reform plan of 1842 ff. <i>Adam Smith</i> approximated to this view when
+ he ascribed a more favorable balance to the country which paid for its
+ imports with its own instead of with foreign products. (W. of N., IV, ch.
+ 3-2, p. 329, Bas.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-5-11" id="footnote_A2-5-11"></a>
+ <a href="#fnanchor_A2-5-11">[A2-5-11]</a>
+ Compare § 141. Strongly emphasized by <i>List</i>, Werke II, 31, 36 seq.
+ 48, 137.</p>
+
+ <p class="footnote"> <a name="footnote_A2-5-12" id="footnote_A2-5-12"></a>
+ <a href="#fnanchor_A2-5-12">[A2-5-12]</a>
+ <i>Torrens</i> imagines an English manufacturer who employs raw material =
+ 100 quarters of corn and manufactured wares = 100 bales of cloth (the
+ quarter of corn and the bale of cloth supposed to be of equal value) and
+ whose product = 240 bales in value; and compares him with an American
+ agriculturist who, by means of the same outlay of capital, harvests 240
+ quarters of corn. The trade between them restores to each not only his
+ outlay, with twenty per cent. profit, but puts them in a position to
+ repeat their production on a larger scale. Only the quantity of fertile
+ land can put a limit to this growth; for corn and cloth help produce each
+ other, and the cheapness of the one promotes the cheapness of the other,
+ which can not, by any means, be said, for instance, of the exchange
+ between vanilla and satin. (Budget, p. 268 ff.) Compare <i>Roscher</i>,
+ Colonien, p. 277 ff.</p>
+
+ <p class="footnote"> <a name="footnote_A2-5-13" id="footnote_A2-5-13"></a>
+ <a href="#fnanchor_A2-5-13">[A2-5-13]</a>
+ The important controversy concerning absenteeism may be answered in
+ accordance with the principles laid down in this chapter. The mercantile
+ system considered the rent sent to absentee landlords or capitalists as a
+ tribute paid to foreign countries; but certainly improperly, as such rent
+ is only the fruit of their property which the owners might have consumed
+ in their own country, without giving any one a particle of it. Besides,
+ these rents are not sent in cash to foreign countries, but in the form of
+ those commodities to the exportation of which the country is peculiarly
+ well adapted. Let us suppose, for instance, that the Irish absentees had
+ all left the country at once. The tradesmen, personal servants, etc., to
+ whom they had hitherto furnished employment would be greatly embarrassed
+ to find a market for their services, etc., but the producers of linen and
+ meat would have largely increased their exports, because an entirely new
+ demand for their products would have arisen through the farmers of the
+ absentees. The reverse would necessarily happen if all absentees were
+ suddenly called home. Absenteeism which has lasted a long time injures no
+ one economically. Many, recently, laud it even, because it permits every
+ nation to devote their energies to the branches of production for which
+ they are best qualified: Paris, for instance, to theatrical and luxury
+ wares. The savings made by the English absentees on the continent, where
+ things are cheaper, turn eventually to the advantage of England. (Thus,
+ even <i>Petty</i>: Political Anatomy of Ireland, p. 81 ff. <i>Foster</i>,
+ On the Principle of Commercial Exchanges between Great Britain and
+ Ireland, 1804, p. 76 ff. Edinb. Rev., 1827. <i>F. B. Hermann</i>,
+ Staatswirthschaftl. Untersuchungen, 355, 363 ff. <i>Per contra</i>,
+ especially, Discourse of Trade and Coyn, 1697, p. 99. <i>M. Prior</i>,
+ List of the Absenters of Ireland, 1730. <i>A. Young</i>; Tour in Ireland,
+ 1780. <i>Sir J. Sinclair</i>, Hist. of the Public Revenue, 1804, III, 192
+ seq. <i>Lady Morgan</i>, On Absenteeism, 1825.) An aversion for
+ absenteeism plays a chief part in all Carey's writings. Thus, even in his
+ Rate of Wages, 45 ff.</p>
+
+ <p class="footnote">On medieval complaints concerning the absenteeism of
+ monasteries: <i>Bodmann</i>, Rheingauische Alterthümer, 751. From a higher
+ point of view, it cannot, indeed, be ignored that absenteeism, largely
+ developed, cripples the organic whole of national life. The most highly
+ cultured and influential classes become estranged from their country, the
+ great mass remaining behind coarser, economic production more one-sided,
+ and all social contrasts more sharply defined. Disturbances in Rome, when
+ Diocletian removed his residence from there; the decline of the
+ Netherlands, very much promoted by the discontent which Philip II.'s
+ departure for Spain produced. It was estimated, however, in 1697, that the
+ English absentees caused a gain to France of £200,000 per annum.
+ (Discourse of Trade, p. 93.) It is said that about 1833, 80,000 Englishmen
+ traveled on the continent, and consumed £12,000,000 there. (<i>Rau.</i>)
+ According to <i>Brückner</i>, the Russians who travel in foreign countries
+ take 20,000,000 rubles a year out of the country with them.
+ (<i>Hildebrand's</i> Jahrb., 1863, 59.) That the countries which receive
+ these travelers receive no very great benefit from them, see in <i>J. B.
+ Say</i>, Cours pratique. In Paris, there were, even in 1797, so many
+ strangers who so enhanced the rents paid for <i>maisons garnies</i> that
+ their expulsion was proposed. (<i>A. Schmidt</i>, Pariser Zustände, III,
+ 78.)</p>
+
+<p class="p2 center">SECTION VI.<span class='pagenum'>[Pg 414]</span></p>
+
+<p class="center smaller">INTERNATIONAL COMMERCIAL TREATIES.</p>
+
+<p>All international commercial treaties have this object in common: to
+moderate the impediments to trade which arise <span class='pagenum'>[Pg
+415]</span> from the differences and even from the enmities of states.
+According to time and character, they fall into three groups:</p>
+
+<p>A. <i>Medieval</i>, where a barbarous state for the first time promises
+foreign merchants in general legal security, without which regular trade is
+unthinkable. Such treaties, where their provisions are not a matter of
+course, must be certainly considered as a salutary advance; and they may,
+under certain circumstances, be necessary even to-day.<a name=
+"fnanchor_A2-6-1" id="fnanchor_A2-6-1"></a><a href="#footnote_A2-6-1"
+class= "fnanchor">[A2-6-1]</a></p>
+
+<p>B. <i>Mercantilistic</i> treaties, which close, perhaps, even a bloody
+commercial war carried on against a rival,<a name="fnanchor_A2-6-2"
+id="fnanchor_A2-6-2"></a><a href= "#footnote_A2-6-2" class=
+"fnanchor">[A2-6-2]</a> or which <span class='pagenum'>[Pg 416]</span> by a
+closer connection with a state, whose rivalry is not so much feared, are
+intended to moderate the worst consequences of a general seclusion.<a
+name="fnanchor_A2-6-3" id="fnanchor_A2-6-3"></a><a href="#footnote_A2-6-3"
+class="fnanchor">[A2-6-3]</a> Consistently carried out, and without any
+regard for consequences, the mercantile system really means a war of each
+state against all others, and it is no mere accident that after the
+cessation of the wars of religion (1648) and before the beginning of the
+war of the French revolution (1792), commercial wars occupy the foreground.
+Such economic alliances as are entered into in these treaties generally
+unite states which, by reason of the very different nature of their land
+and their different national culture, are adapted to production of very
+different kinds, and which, at the same time, have a common political
+interest.<a name= "fnanchor_A2-6-4" id= "fnanchor_A2-6-4"></a><a
+href="#footnote_A2-6-4" class="fnanchor">[A2-6-4]</a> Each party here
+agrees with the other to give a preference to its subjects in trade, to not
+exceed certain maxima of duties, etc.<a name="fnanchor_A2-6-5" id=
+"fnanchor_A2-6-5"></a><a href= "#footnote_A2-6-5" class=
+"fnanchor">[A2-6-5]</a></p>
+
+<p><span class='pagenum'>[Pg 417]</span>The art of the negotiator was
+employed to overreach the other contractant in relation to the balance of
+trade.<a name="fnanchor_A2-6-6" id= "fnanchor_A2-6-6"></a><a href=
+"#footnote_A2-6-6" class="fnanchor">[A2-6-6]</a> It was considered a
+special matter of congratulation to induce a less highly developed nation
+to abandon the traditional means employed to artificially elevate its
+industries. Hence it is, that such friendly treaties frequently contained
+the germs of the bitterest enmity.<a name="fnanchor_A2-6-7" id=
+"fnanchor_A2-6-7"></a><a href= "#footnote_A2-6-7" class=
+"fnanchor">[A2-6-7]</a> A popular remnant of this second group <span class=
+'pagenum'>[Pg 418]</span> has been noticeable even in recent times, when in
+diplomatic negotiations concerning the reciprocal modification of duties,
+it was considered an overreaching and even as an outrage, in case one state
+made more "concessions" than it received:<a name="fnanchor_A2-6-8" id=
+"fnanchor_A2-6-8"></a><a href= "#footnote_A2-6-8" class=
+"fnanchor">[A2-6-8]</a> evidently, a confusion of the producers of the
+industry in question with the whole nation.</p>
+
+<p>C. <i>Free-trade</i> treaties, intended to pave the way to the general
+freedom of trade.<a name="fnanchor_A2-6-9" id="fnanchor_A2-6-9"></a><a
+href="#footnote_A2-6-9" class="fnanchor">[A2-6-9]</a> Two provisions
+especially are characteristic <span class='pagenum'>[Pg 419]</span> here:
+putting the subjects of the other party on an equal footing with those of
+the home country in what relates to the ship-duties, etc.;<a name=
+"fnanchor_A2-6-10" id="fnanchor_A2-6-10"></a><a href= "#footnote_A2-6-10"
+class="fnanchor">[A2-6-10]</a> and the promise that the products of the
+other party, as regards import duties, shall be treated like those of the
+most favored nation.<a name="fnanchor_A2-6-11" id="fnanchor_A2-6-11"></a><a
+href="#footnote_A2-6-11" class="fnanchor">[A2-6-11]</a> <a name=
+"fnanchor_A2-6-12" id="fnanchor_A2-6-12"></a><a href= "#footnote_A2-6-12"
+class="fnanchor">[A2-6-12]</a> Whether this preparation for the universal
+freedom of trade is better made through the medium of an international
+treaty or of national legislation cannot be answered generally.<a
+name="fnanchor_A2-6-13" id="fnanchor_A2-6-13"></a><a href=
+"#footnote_A2-6-13" class="fnanchor">[A2-6-13]</a> Besides, in our day, the
+preference of one foreign nation would be easily evaded through the
+perfection of the modern means of communication.</p>
+
+ <p class="footnote"> <a name="footnote_A2-6-1" id="footnote_A2-6-1"></a>
+ <a href="#fnanchor_A2-6-1">[A2-6-1]</a>
+ The treaty of commerce between England and Morocco, of the 9th of
+ December, 1856, specially covenants that the countrymen of a debtor shall
+ not be held responsible for debts in the creation of which they had no
+ part; that between England and Mexico, in 1826, guaranties, among other
+ things, that prices shall be freely determined between buyers and sellers
+ (art. 8), freedom from compulsory loans, and from forced conscription for
+ military duty (10), the exercise of one's religion, and the inviolability
+ of graves (13); things which were not yet matters of course in Mexico!
+ Similar agreements between Spain and England in 1667; between Spain and
+ Holland in 1648 and 1713; and even in 1786, between England and France.
+ Commercial treaties of this kind are found very early and very frequently
+ among the ancients. Compare the Arcadian-Ægean in <i>Pausan</i>, VIII, 5,
+ 5, which strongly recalls the Russo-English trade over Archangel; further,
+ Corp. Inscr. Gr., II, No. 1793, 2053 b and c, 2056, 2447 b, 2675-78, 3523.
+ That in the suburbs of Jerusalem, from Solomon to Josias, places where
+ Astarte<a name= "fnanchor_TN129" id= "fnanchor_TN129"></a><a href=
+ "#footnote_TN129" class= "fnanchor">[TN 129]</a> etc. was worshipped, were
+ maintained unhindered, depends, it is said, on commercial treaties with
+ the Phœnicians, Moabites, Ammonites. (<i>Movers</i>, Phönikier, III, 1,
+ 121 ff., 206 seq.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-6-2" id="footnote_A2-6-2"></a>
+ <a href="#fnanchor_A2-6-2">[A2-6-2]</a>
+ The two commercial treaties between Rome and Carthage, 348 and 306 before
+ Christ (<i>Polyb.</i>, III, 22 ff.), are a clear proof that, in the
+ interval, the mercantile superiority of Carthage had increased. While the
+ Romans in 348 had still the right, under certain limitations, to carry on
+ trade in Sardinia and Africa, it was in 306 entirely denied them.</p>
+
+ <p class="footnote"> <a name="footnote_A2-6-3" id="footnote_A2-6-3"></a>
+ <a href="#fnanchor_A2-6-3">[A2-6-3]</a>
+ As guild-privileges make annual fairs (<i>Jahrmärkte</i>) and governmental
+ fixed prices necessary.</p>
+
+ <p class="footnote"> <a name="footnote_A2-6-4" id="footnote_A2-6-4"></a>
+ <a href="#fnanchor_A2-6-4">[A2-6-4]</a>
+ Commercial treaty of the Venetians with the Latin empire in
+ Constantinople, of the Genoese with the Greek after its restoration; in
+ which, for instance, it was promised to the former, that no citizen of a
+ state at war with Venice, should be permitted to sojourn in the Byzantine
+ empire; to the latter, that they alone of all foreigners should enjoy
+ freedom from taxation, and, with the Pisans, navigate the Black Sea. As
+ long as the Dutch were the hereditary foes of Spain, they were much
+ favored in France. Commercial treaty of 1596, putting them on an equal
+ footing with the French; and which, considering their superiority at the
+ time, was necessarily of greater advantage to them than to the French.
+ <i>Colbert's</i> step to destroy this preponderance is coincident with the
+ changed foreign policy. (Richesse de Hollande, I, 127.) In the peace of
+ Nijmegen,<a name= "fnanchor_TN130" id= "fnanchor_TN130"></a><a href=
+ "#footnote_TN130" class= "fnanchor">[TN 130]</a> again (art. 6 seq.),
+ France tried to separate the Dutch from their allies by the restoration of
+ their former rights. In the Spanish war of succession, France entered into
+ a treaty with the arch-duke, Charles, that a common commission should fix
+ the duties on English commodities, transfer the trade with America to an
+ English-Spanish company, but that the French should be excluded therefrom.
+ (<i>Ranke</i>, Franz. Gesch., IV, 257.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-6-5" id="footnote_A2-6-5"></a>
+ <a href="#fnanchor_A2-6-5">[A2-6-5]</a>
+ The king of Bosporos had the rights of citizenship in Athens, and enjoyed
+ that of freedom from taxation of his property there. In consideration of
+ this, the Athenians were released from his corn export duties of 1/30.
+ (<i>Isocr.</i>, Trapez., § 71. <i>Demosth.</i>, Lept., p. 476 ff.)
+ Commercial treaty of Justinian with Ethiopia: the latter was to afford aid
+ against the Persians, in return for which Byzantium promised to supply its
+ requirement of silk no longer from Persia, but from Ethiopia. Commercial
+ treaty between Florence and England, 1490: England promised to permit all
+ the wool destined for Italy, except a small quantity intended for Venice
+ only, to go over Pisa, and as a rule, not through foreigners. Florence, on
+ the other hand, was to receive English wool only through English ships.
+ (<i>Rymer</i>, Foedera, XII, 390 seq. Decima dei Fiorentini, II, 288
+ ff.)</p>
+
+ <p class="footnote"> <a name="footnote_A2-6-6" id="footnote_A2-6-6"></a>
+ <a href="#fnanchor_A2-6-6">[A2-6-6]</a>
+ The difficulties of such negotiations described by an experienced
+ politician (probably <i>Eden</i>): Historical and Political Remarks on the
+ Tariff of the French Treaty, 1787.</p>
+
+ <p class="footnote"> <a name="footnote_A2-6-7" id="footnote_A2-6-7"></a>
+ <a href="#fnanchor_A2-6-7">[A2-6-7]</a>
+ The Methuen treaty (1703) was considered an English master-piece, because
+ Portugal had actually exported a great deal of Brazilian gold to England.
+ <i>Pombal</i> said, in 1759: "Through unexampled stupidity, we permit
+ ourselves to be clothed, etc. England robs us every year, by its industry,
+ of the products of our mines.... A severe prohibition of the exportation
+ of gold from Portugal might overthrow England." (<i>Schäfer</i>, Portug.
+ Gesch., V, 494 ff.) And yet the treaty only says that Portugal withdraws
+ its prohibition of English woolen wares, and restores the former duties
+ (15 per cent.), while England continues to permit Portuguese wine to pay a
+ duty 1/3 less than French wines! Singular doctrine of <i>Adam Smith</i>
+ (W. of N., IV, ch. 6), and still more of <i>McCulloch</i> (Comm. Dict., v.
+ Commercial Treaties), that this commercial treaty was unfavorable to
+ England and very favorable to Portugal, although, in fact, later a duty of
+ only about 3 per cent. was imposed here on English commodities.
+ (<i>Büsch</i>, Werke, II, 62.) The English-French commercial treaty of
+ 1786 introduces in the place of the former prohibition, duties of 10, 12
+ and 15 per cent. for a number of industrial products. The French soon came
+ to believe that they had been taken advantage of here. <i>A. Young</i>
+ found the desire very general in the north of France, to get rid of the
+ Eden treaty even through a war. (Travels in France, I, 73.) Many of the
+ <i>cahiers</i> of the third estate demand that no treaty of commerce
+ should be entered into without previous consultation with the industries
+ interested. (Acad. des Sc. morales et polit., 1865, III, 214.) But in
+ England, also, bitter complaints of the opposition, to which Pitt replied,
+ that commercial treaties between agricultural and industrial countries
+ result to the advantage of the latter, independent of the fact that
+ England obtained a new market of 24,000,000, and France of only 8,000,000
+ persons. Compare the extracts in <i>Lauderdale</i>, Inquiry, App., 14.
+ Forcade: Revue des deux Mondes, 1843.</p>
+
+ <p class="footnote"> <a name="footnote_A2-6-8" id="footnote_A2-6-8"></a>
+ <a href="#fnanchor_A2-6-8">[A2-6-8]</a>
+ Urged very largely in southern Germany against the Prussian-French
+ commercial treaty of 1862. But is it really an "advantage" for France to
+ have in the interior more toiling (<i>Plackereien</i>) for inlanders as
+ well as for foreigners? Or that its consumers must pay high taxes to the
+ producers of certain wares?</p>
+
+ <p class="footnote"> <a name="footnote_A2-6-9" id="footnote_A2-6-9"></a>
+ <a href="#fnanchor_A2-6-9">[A2-6-9]</a>
+ Seldom in antiquity. Compare, however, Inscr. Gr., II, No. 256, and the
+ reciprocal granting of the rights of citizenship of Athens and Rhodes.
+ (<i>Livy</i>, XXXI, 15.) Among the moderns, Flanders followed free-trade
+ principles similar to those followed later by Holland, at the beginning of
+ the fourteenth century; for instance, it refused to gratify France by
+ breaking off its trade with Scotland. (<i>Rymer</i>, Foedera, II, 388.)
+ Florence, in 1490, promised the English, that in all treaties to be
+ entered into with others, it would permit it to enter. In the
+ French-Florentine commercial treaty of 1494, it is stipulated with the
+ Florentines that their ships <i>Gallica esse intelligantur</i> and their
+ merchants <i>tanquam veri et naturales Galli</i> etc. (Decima, II, 308.)
+ Swedish treaty with Stralsund, 1574, that every privilege granted to a
+ Baltic city should also be, of itself, to the advantage of Stralsund.
+ Mutual equal treatment of subjects promised between Portugal and England,
+ 1642; Portugal and Holland, 1661; mutual treatment on the basis of the
+ most favored nation: between England and Portugal, 1642; Holland and
+ Spain, in the peace of Utrecht; Spain and Portugal, 1713; Spain and
+ Tuscany, 1731; England and Russia, 1734. But how far such principles were
+ removed from the beginning of the eighteenth century is shown by the
+ speech from the throne of the 28th of January, 1727, of George I., in
+ which the Austro-Spanish treaty of 1725, that placed the subjects of
+ Austria in the colonial empire of Spain on an equal footing with the
+ English and Dutch, is described as a violation of the dearest interests of
+ England, and in which it is said that England must defend its own
+ unquestionable right against the covenant entered into to violate public
+ faith and the most solemn treaties; that it might be that Spain thought of
+ subjecting England once more to the popish pretender. Even in 1713, it was
+ one of the principal points in controversy between the Tories and Whigs,
+ whether, in a commercial treaty with France, the latter should be accorded
+ the rights of the most favored nations. Compare <i>Daniel Defoe</i>, A
+ Plan of the English Commerce, and <i>per contra</i>, The British
+ Merchant.</p>
+
+ <p class="footnote"> <a name="footnote_A2-6-10" id="footnote_A2-6-10"></a>
+ <a href="#fnanchor_A2-6-10">[A2-6-10]</a>
+ English treaties with Prussia, 1824; the Hanse cities, 1825; with Sweden,
+ 1826; France, 1826 (England removed the limitations still retained without
+ compensation, in 1839); Naples, 1845; Sardinia, Holland and Belgium, 1851.
+ Prussian treaties with Russia, 1825; Naples, 1847; Holland, 1851. French
+ with Bolivia, 1834; Holland, 1846 (in which reciprocity is extended even
+ to the navigation of rivers); Denmark, 1842; Venezuela, Equador and
+ Sardinia, 1843; Russia and Chili, 1846; Belgium, 1849; and Portugal,
+ 1853.</p>
+
+ <p class="footnote"> <a name="footnote_A2-6-11" id="footnote_A2-6-11"></a>
+ <a href="#fnanchor_A2-6-11">[A2-6-11]</a>
+ Marking an epoch in this respect are the treaties of the United States
+ with Holland (Oct. 8, 1782), Sweden (April 3, 1783), Frederick the Great
+ (Sept. 10, 1785), and England (Oct. 28, 1795); recently that entered into
+ by Napoleon III. with England in 1860, and with the Zollverein in
+ 1862.</p>
+
+ <p class="footnote"> <a name="footnote_A2-6-12" id="footnote_A2-6-12"></a>
+ <a href="#fnanchor_A2-6-12">[A2-6-12]</a>
+ The expression "most favored" is not always strictly construed. Thus, for
+ instance, France granted the right of coast-sailing proper
+ (<i>cabotage</i>) only to Spain. States frequently promise only:
+ <i>s'appliquer réciproquement toute faveur en matière de commerce et de
+ navigation qu'ils accorderaient à un autre état gratuitement ou avec
+ compensation</i>.</p>
+
+ <p class="footnote"> <a name="footnote_A2-6-13" id="footnote_A2-6-13"></a>
+ <a href="#fnanchor_A2-6-13">[A2-6-13]</a>
+ Napoleon III. had a preference for commercial treaties, because these, as
+ acts of foreign politics, lay in the plenitude of his imperial power (art.
+ 6 of the constitution of 1852; senatus consultum of Dec. 23, 1852), while
+ in legislation, his free trade tendencies were limited by popular
+ representation. And so also Prussia, by its commercial treaty with him
+ (1862), was actually freed from the hindrances which the free veto of the
+ Zollverein-conferences would have opposed to its reform. Opposition to the
+ treaty-form because too binding. (<i>Chaptal</i>, De l'Industrie
+ Française, II, 242 ff.) The free-trade party lauds it precisely on this
+ account. See the report of the Leipzig Chamber of Commerce for 1874-75, p.
+ 41.]</p>
+
+<p><span class='pagenum'>[Pg 420]</span><br />
+<span class='pagenum'>[Pg 421]</span></p>
+
+<h3 class="p4">APPENDIX III.</h3>
+
+<h3>THE INDUSTRIAL PROTECTIVE SYSTEM AND INTERNATIONAL FREE TRADE.</h3>
+
+<p><span class='pagenum'>[Pg 422]</span><br />
+<span class='pagenum'>[Pg 423]</span></p>
+
+<h3 class="p4">THE INDUSTRIAL PROTECTIVE SYSTEM AND INTERNATIONAL FREE
+TRADE.</h3>
+
+<p class="p2 center">SECTION I.</p>
+
+<p class="center smaller">PROXIMATE ECONOMIC EFFECTS OF THE INDUSTRIAL
+PROTECTIVE SYSTEM.</p>
+
+<p>That the principal measures which the mercantile system recommended,
+artificially to increase a nation's wealth, could not produce the immediate
+effects expected of them, has been shown, especially from the natural
+history of money. Their proximate economic consequences necessarily
+consisted in this, that they diverted the existing productive forces of the
+nation from their places of application (<i>Verwendungsplätzen</i>)
+hitherto, to others which the government thought more advantageous.</p>
+
+<p>A. If home producers are in a condition to offer their commodities as
+good and as cheap as foreigners, all protection of the former by import
+duties, or even by prohibitions, is superfluous. The home producer has, as
+a rule, not only the advantage of the smaller cost of freight to the place
+of consumption,<a name="fnanchor_A3-1-1" id="fnanchor_A3-1-1"></a><a
+href="#footnote_A3-1-1" class="fnanchor">[A3-1-1]</a> but that of being
+earlier informed, because of his <span class='pagenum'>[Pg 424]</span>
+proximity to consumers, of a change in their tastes.<a name=
+"fnanchor_A3-1-2" id="fnanchor_A3-1-2"></a><a href="#footnote_A3-1-2"
+class= "fnanchor">[A3-1-2]</a> If, indeed, foreigners could supply us
+better and cheaper, and if they are kept from supplying our market only by
+artificial means, the state compels our consumers to a sacrifice of
+enjoyment;<a name="fnanchor_A3-1-3" id="fnanchor_A3-1-3"></a><a href=
+"#footnote_A3-1-3" class="fnanchor">[A3-1-3]</a> and such a sacrifice as is
+not fully compensated for by the profit made by the favored producers in
+any manner. The latter are generally soon compelled by home competition to
+arrange their prices in accordance with the rate of profit usual in the
+country. If they had no "protection" they would simply employ their
+productive forces in other branches of production; and in those in which
+they were equal or even superior to foreign competitors. By means of the
+products thus obtained, the people might then get in exchange all those
+commodities from foreign countries, the production of which it is,
+according to the laws of the division of labor, better to leave to foreign
+countries.<a name="fnanchor_A3-1-4" id="fnanchor_A3-1-4"></a><a
+href="#footnote_A3-1-4" class="fnanchor">[A3-1-4]</a> Since one nation can
+lastingly pay <span class='pagenum'>[Pg 425]</span> another nation only
+with its own products, any limitation of imports must, under otherwise
+equal circumstances, be attended by a corresponding limitation of
+exports.<a name="fnanchor_A3-1-5" id="fnanchor_A3-1-5"></a><a href=
+"#footnote_A3-1-5" class="fnanchor">[A3-1-5]</a> Directly, therefore, these
+hindrances to importation produce no increase, but only a change in the
+direction (<i>Umlenkung</i>) of the national forces of capital and labor;
+an increase, only in case that foreign producers are thereby caused to
+transfer their productive forces within our limits;<a name=
+"fnanchor_A3-1-6" id="fnanchor_A3-1-6"></a><a href="#footnote_A3-1-6"
+class= "fnanchor">[A3-1-6]</a> which may certainly be considered the
+greatest triumph of the protective system. Hence it is <span
+class='pagenum'>[Pg 426]</span> absurd when an equal extension of
+"protection" to all the branches of a nation's economy is demanded, as it
+is so frequently, in the name of justice. There is here no real protection
+whatever, analogous, for instance, to the protection afforded by the judge,
+but a favor which can be accorded to no one without injuring some one
+else.<a name="fnanchor_A3-1-7" id="fnanchor_A3-1-7"></a><a href=
+"#footnote_A3-1-7" class="fnanchor">[A3-1-7]</a></p>
+
+ <p class="footnote"> <a name="footnote_A3-1-1" id="footnote_A3-1-1"></a>
+ <a href="#fnanchor_A3-1-1">[A3-1-1]</a>
+ It is of course different in the working (<i>Verarbeitung</i>) of foreign
+ raw material. Much also depends on the situation of the industrial
+ provinces. For instance, manufactured articles can reach the interior of
+ Spain and the Western states of the American Union only after they have
+ passed the industrial coast-regions of both countries. In Russia, on the
+ other hand, the center is the principal industrial region; and hence the
+ coast may be actually nearer to foreign than to home manufacturers.
+ Similarly, in France, at least for iron and coal. Compare <i>Adam
+ Smith</i>, W. of N., II, p. 279 Bas.</p>
+
+ <p class="footnote"> <a name="footnote_A3-1-2" id="footnote_A3-1-2"></a>
+ <a href="#fnanchor_A3-1-2">[A3-1-2]</a>
+ People would, however, have to calculate on the foolish luxury which
+ despises the home product because "it came from no great distance."
+ World-supremacy of Paris fashions! A manufacturer of excellent German
+ <i>Schaumwein</i> (foaming wine) complained to me, in 1861, that, after
+ suffering heavy losses, he was compelled by his customers to adopt French
+ labels. Here, a wise prince may have a favorable influence by his example.
+ Louis XIV. himself insisted, when his mother died, that the court should
+ use only French articles of mourning. <i>Gee</i>, Trade and Navigation, p.
+ 46. Augustus I., of Saxony, always wore home cloth. (<i>Weisse</i>, Museum
+ für Sächsische Geschichte, II, 2, 109.) Similar requirements by the prince
+ of Orange (1749) of all officials: Richesse de Hollande, II, 317. Dutch
+ executioners were dressed in calico. (Discourse of Trade, Coyn, etc.,
+ 1697.) American popular stipulations not to wear foreign articles of
+ luxury. (<i>Ebeling</i>, Geschichte und Erdbeschreibung, II, 481.) Rhode
+ Island tailors placed the working wages for home stuffs much lower than
+ for foreign. (II, 149.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-1-3" id="footnote_A3-1-3"></a>
+ <a href="#fnanchor_A3-1-3">[A3-1-3]</a>
+ <i>Prince Smith</i> calls protective duties scarcity-duties
+ (<i>Theuerungszölle</i>). Because of this increased dearness of the
+ "protected" commodities, consumers can no longer pay for as many other
+ home commodities. If the industry was previously in existence, the
+ protective duty imposed is wont to enhance the price, not only of the
+ foreign commodity, but also of the home commodity.</p>
+
+ <p class="footnote"> <a name="footnote_A3-1-4" id="footnote_A3-1-4"></a>
+ <a href="#fnanchor_A3-1-4">[A3-1-4]</a>
+ If, for instance, the English had never had a protective tariff on silk,
+ nor the French a protective tariff on iron, the former would probably get
+ all the silk commodities they want from France and pay for them in iron
+ ware. In this way, both nations would be well off in what concerns the
+ relation between the cost of production and the satisfaction of wants.
+ <i>Say</i> calls protective duties a fight against nature, in which we
+ take pains to refuse a part of the gifts which nature offers us. He leaves
+ himself open to the charge of exaggeration, however, when he compares a
+ nation that wants to produce everything itself to a shoemaker who wanted
+ to be tailor, carpenter, to build houses and cultivate a farm also.
+ Although no nation is all-sided, yet every nation is a great deal
+ more-sided than an individual.</p>
+
+ <p class="footnote"> <a name="footnote_A3-1-5" id="footnote_A3-1-5"></a>
+ <a href="#fnanchor_A3-1-5">[A3-1-5]</a>
+ Whoever keeps a people from purchasing in the cheapest market, thereby
+ prevents their selling in the dearest. (<i>McCulloch.</i>) It was no mere
+ desire of revenge that induced Holland, in the 17th century, to threaten
+ the Poles, in case the enhancement of their duties continued in Danzig and
+ Pillau, they would supply their corn-want from Russia, (<i>Boxhorn</i>,
+ Varii Tractat. polit., p. 240.) Thus the tariff-measures adopted by France
+ against the German cattle trade and the Swedish iron trade promoted the
+ growth of the Crefeld silk manufacture, and lessened the exportation of
+ French wine to Sweden. When, in 1809, England heavily taxed Norwegian
+ wood, in favor of Canada, the Norwegians began, instead of purchasing
+ English manufactured articles, to supply themselves from Hamburg, Altona
+ and France. (<i>Blom</i>, Norwegen, I, 257.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-1-6" id="footnote_A3-1-6"></a>
+ <a href="#fnanchor_A3-1-6">[A3-1-6]</a>
+ <i>Fr. List</i> assumed altogether too unconditionally such an effect from
+ import duties to be the rule. The more developed the self-confidence of a
+ nation is, the more vigorous the life of its industries, the more
+ many-sided the commerce of its people; the less disposed are its
+ industrial classes to give up their home and carry their market with them.
+ But, for instance, Swiss labor and, still more, Swiss capital have been
+ induced by the tariff-systems of the great neighboring countries to settle
+ in Mühlhausen, Baden and Voralberg, or at least to establish branch houses
+ in these places. Similarly, Neumark cloth makers were induced to emigrate
+ to Russia, and Nürnberg industrial workmen to Austria (<i>Roth</i>,
+ Geschichte des Nürnbergen Handels, II, 170) etc. Compare <i>Burkhardt</i>,
+ c. Basel, I, 74; <i>Böhmert</i>, Arbeiterverhältnisse der Schweiz, I, 16
+ seq.; II, 17.</p>
+
+ <p class="footnote"> <a name="footnote_A3-1-7" id="footnote_A3-1-7"></a>
+ <a href="#fnanchor_A3-1-7">[A3-1-7]</a>
+ Compare <i>Alby</i> in the Revue des deux Mondes, Oct., 1869, and, <i>per
+ contra</i>, Cairnes, Principles, p. 458. The misfortunes of war or
+ internal disquiet have frequently driven away the best labor-forces of an
+ old industrial state, and thus powerfully promoted a young protective
+ system in the neighborhood. Reception of Byzantine silk-weavers in Venice,
+ during the crusade to Constantinople, of Flemish wool-weavers in England,
+ under Edward III. (<i>Rymer</i>, Foedera, III, 1, 23) and Elizabeth; of
+ Huguenot industrial workmen under the great elector, etc. The growth of
+ the Zurich silk industry by the settlement there of expelled Protestants
+ from Locarno.</p>
+
+ <p class="footnote">England, indeed, had, up to 1849, protective duties
+ both for industry and agriculture. But the protective duties were of no
+ real importance, except in the case of the latter, because the greater
+ part of England's industrial products were superior to foreign competition
+ without the help of protective duties. Something similar is true of most
+ duties on raw material in the United States.</p>
+
+<p class="p2 center"><a name="A3-2"></a>SECTION II.</p>
+
+<p class="center smaller">EFFECT OF EXPORT DUTIES, etc., ON RAW MATERIAL.&mdash;EXPORT
+PREMIUMS.</p>
+
+<p>B. Export duties on raw material, and prohibitions of the exportation of
+raw material, lower the price of such articles, by preventing the
+competition of foreign buyers.<a name= "fnanchor_A3-2-1" id=
+"fnanchor_A3-2-1"></a><a href= "#footnote_A3-2-1" class=
+"fnanchor">[A3-2-1]</a> To this loss of the producers of raw material,
+there is, in the long run, no corresponding gain to the manufacturers.
+Rather will there be, when freedom of competition prevails at home, an
+increased flow of the forces of production to the favored branch, because
+of its rate of profit, which is greater than that usual in the country, and
+a corresponding flow from the injured branch, until such time as the level
+of profit usual <span class='pagenum'>[Pg 427]</span> in the country is
+restored.<a name="fnanchor_A3-2-2" id="fnanchor_A3-2-2"></a><a href=
+"#footnote_A3-2-2" class="fnanchor">[A3-2-2]</a> Hence here, also, the
+final result is only a change of the direction, not a direct increase of
+the productive forces.<a name="fnanchor_A3-2-3" id="fnanchor_A3-2-3"></a><a
+href="#footnote_A3-2-3" class="fnanchor">[A3-2-3]</a></p>
+
+<p>C. In the case of export-premiums, it is necessary to distinguish
+between the mere refunding back of the taxes which have been paid on the
+assumption of a home consumption which has not taken place (drawbacks), and
+the actual making of donations because of the exportation of goods
+(bounties). The former produces no result except to maintain the
+possibility of a production which would otherwise have been prevented by
+the tax. The latter, on the contrary, compels all <span class='pagenum'>[Pg
+428]</span> those who are subject to taxation to make a donation to one
+particular class of persons engaged in industry.<a name="fnanchor_A3-2-4"
+id= "fnanchor_A3-2-4"></a><a href= "#footnote_A3-2-4" class=
+"fnanchor">[A3-2-4]</a> Moreover, all consumers are compelled to pay a
+higher price for the commodity to the extent that the market price,
+inclusive of the premium to be obtained abroad, is higher than the home
+market price hitherto usual. But, as the cost of production has not
+increased, this profit of the producers, which is greater than that usual
+in the country, must induce other productive forces to enter into the
+favored branch; so that here, also, the lasting result is not a higher rate
+of profit of the individuals engaged in the industry, but an extension of
+the industry itself. Foreign countries chiefly reap the greatest advantage
+from this course, since they obtain the commodities at gift-prices.<a
+name="fnanchor_A3-2-5" id="fnanchor_A3-2-5"></a><a href="#footnote_A3-2-5"
+class="fnanchor">[A3-2-5]</a> The premiums paid, not for exportation, but
+for the production of a commodity, have a meaning akin to this.<a
+name="fnanchor_A3-2-6" id="fnanchor_A3-2-6"></a><a href="#footnote_A3-2-6"
+class="fnanchor">[A3-2-6]</a> Either the industry could not maintain itself
+without premiums, in which case the state encourages a losing
+production,&mdash;and the more there is produced the greater is the loss to
+the national economy;&mdash;or the industry might exist without the payment
+of premiums, and then the newly increased profit <span class='pagenum'>[Pg
+429]</span> would lead to an extension of the industry. Exportation would
+follow, and all the effects of export-premiums appear.<a name=
+"fnanchor_A3-2-7" id="fnanchor_A3-2-7"></a><a href="#footnote_A3-2-7"
+class= "fnanchor">[A3-2-7]</a></p>
+
+ <p class="footnote"> <a name="footnote_A3-2-1" id="footnote_A3-2-1"></a>
+ <a href="#fnanchor_A3-2-1">[A3-2-1]</a>
+ Rags in Silesia dearer than in Bohemia by the full amount of the Austrian
+ export duties (Gutachten über die Erneuerung der Handelsverträge; 1876, p.
+ 9). When the English export-prohibitions were extended to Scotland, the
+ price of Scotch wool fell about 50 per cent. (<i>A. Smith</i>, W. of N.,
+ IV, ch. 8.) In the case of foreign raw material, the reëxportation of
+ which is prevented, the object of such prohibitions may be largely
+ frustrated. When England, to promote its dyeing industries, left the
+ importation of colors entirely free, but allowed their exportation only
+ under heavy duties (8 George I., c. 15), the importers provided the market
+ always with somewhat less than the amount required, and thus raised the
+ price.</p>
+
+ <p class="footnote"> <a name="footnote_A3-2-2" id="footnote_A3-2-2"></a>
+ <a href="#fnanchor_A3-2-2">[A3-2-2]</a>
+ Export hindrances have been continued longest in favor of manufacturing
+ industries (<i>Verarbeitungsindustrie</i>), in the case of such
+ commodities as are not intentionally produced, such as rags, ashes, etc.,
+ but which are collected only as the remains of some other kind of
+ production or consumption. "Negative production," according to
+ <i>Stilling</i>, Grundsätze der Staatswirthschaft, 803, because it is
+ desirable to produce as little as possible of such raw material. But the
+ dearer rags, for instance, are, the more carefully are they collected.</p>
+
+ <p class="footnote"> <a name="footnote_A3-2-3" id="footnote_A3-2-3"></a>
+ <a href="#fnanchor_A3-2-3">[A3-2-3]</a>
+ When the French prohibition of the exportation of hemp was extended to
+ Alsace, its production decreased from 60,000 to 40,000 cwt.
+ (<i>Schwerz</i>, Landwirthschaft des Nieder-Elsasses, 378 ff.) Frederick
+ the Great soon carried his prohibition of the exportation of raw wool to
+ such an extent as to prohibit the exportation even of unshorn sheep, and
+ to punish the dropping of a sheepfold by a fine of 1,000 ducats. (Preuss.
+ Gesch. Friedrichs III., 42.) Here, also, belong prohibitions relating to
+ the exportation of corn, which force considerable capital, etc. into
+ industry. The prohibition of the exportation of corn in England, and the
+ permitting of the exportation of cattle, wool, etc., was one of the
+ principal causes why there were so many complaints at the time of the
+ turning of land used for tillage into pasturage-land. When, in 1666, the
+ exportation of Irish cattle to England was prohibited, it produced, at the
+ outset, great need in Ireland, but afterwards a flourishing condition of
+ Irish industry. (<i>Hume</i>, History of England, ch. 64.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-2-4" id="footnote_A3-2-4"></a>
+ <a href="#fnanchor_A3-2-4">[A3-2-4]</a>
+ The effect must be very much the same when the right of buying up all the
+ raw material of a certain district is granted to one factory exclusively.
+ The elector, Augustus of Saxony, did this frequently. Compare
+ <i>Falke</i>, Gesch. des Kurf., A. v. S., 190-212, 345.</p>
+
+ <p class="footnote"> <a name="footnote_A3-2-5" id="footnote_A3-2-5"></a>
+ <a href="#fnanchor_A3-2-5">[A3-2-5]</a>
+ As to how, by means of German drawbacks (<i>Rückzölle</i>) it is possible
+ for beet-sugar to be offered at a cheaper rate in Brazil than home
+ cane-sugar, see <i>Wappäus</i>, Brazilien, 1830. The French
+ export-premiums for sugar amounted, in 1856, to over 8,000,000 francs.
+ Frenchmen subject to taxation were obliged to pay this amount, and thus
+ add to the already increasing price which they had to pay for that
+ article. (Journ. des Econom., Juill., 1857.) In England, in 1742, the
+ export-premiums for linen were defrayed by enhanced entry-duties on
+ cambrics. (15 and 16 George II., c. 29.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-2-6" id="footnote_A3-2-6"></a>
+ <a href="#fnanchor_A3-2-6">[A3-2-6]</a>
+ As to how English export-premiums sometimes made English commodities
+ cheaper in Germany than in England, see <i>Büsch</i>, Werke, XIII, 82.
+ There are, indeed, gifts which may ruin the receiver of them, as, for
+ instance, when one gets his rival intoxicated at his expense before the
+ decisive solicitation. <i>Timeo Danaos et dona ferentes</i> (cited by Fox
+ and Burke against the Eden treaty: <i>Hansard</i>, Parl. History, 1787,
+ Jan. p. 402, 488).</p>
+
+ <p class="footnote"> <a name="footnote_A3-2-7" id="footnote_A3-2-7"></a>
+ <a href="#fnanchor_A3-2-7">[A3-2-7]</a>
+ It is said that Maria Theresa paid 1,500,000 florins a year for this
+ purpose. (<i>Sonnenfels</i>, Grundsätze, II, p. 179.) England, between
+ 1806 and 1813, altogether, £6,512,170. <i>Colquhoun</i>, Wohlstand, Macht,
+ etc., Tieck's translation, I, 251.</p>
+
+<p class="p2 center">SECTION III.</p>
+
+<p class="center smaller">THE FREE-TRADE SCHOOL.</p>
+
+<p>From what has been said, we may understand why the so-called free-trade
+school, with its atomistic over-valuation of the individual and the moment,
+rejects all those measures of the industrial protective system.<a name=
+"fnanchor_A3-3-1" id="fnanchor_A3-3-1"></a><a href= "#footnote_A3-3-1"
+class= "fnanchor">[A3-3-1]</a> As such measures really injure <span class=
+'pagenum'>[Pg 430]</span> the oppressed portions of the people more than
+they help the favored classes, their introduction, it is said, uniformly
+depends on this, that single classes of producers understand their private
+interests better than others, and are better organized than other producers
+and especially better than consumers, to take care of their interests.<a
+name="fnanchor_A3-3-2" id="fnanchor_A3-3-2"></a><a href="#footnote_A3-3-2"
+class="fnanchor">[A3-3-2]</a> Adam Smith approves import hindrances for the
+purpose of artificially promoting an industry only in two cases:</p>
+
+<p>A. When military safety demands it. Hence he calls the English
+navigation act, that great prohibitive and protective law intended to
+advance the merchant marine, the wisest perhaps of all English commercial
+regulations, although he clearly saw that it compelled England to sell her
+own commodities cheaper and buy foreign commodities dearer.<a name=
+"fnanchor_A3-3-3" id="fnanchor_A3-3-3"></a><a href="#footnote_A3-3-3"
+class= "fnanchor">[A3-3-3]</a></p>
+
+<p><span class='pagenum'>[Pg 431]</span>B. When the import duty is no more
+than sufficient to balance the tax imposed on the corresponding home
+product. Smith rightly remarks that a universally heavier taxation by the
+home country, but which affected all branches of its production equally,
+operated like diminished natural fertility, and hence does not make any
+equalizing tax for foreign trade necessary.</p>
+
+<p>The person who has only a modest opinion of the power of his own reason,
+and therefore a just one of the reason of other men and other times, will
+not believe that a system like the industrial protective system which the
+greatest theorizers and practitioners favored for centuries, and which
+governed all highly developed countries in certain periods of their
+national life, proceeded entirely from error and deception. It really
+served, in its own time, a great and regularly occurring want; and the
+error consisted only in this, that, partly through improper generalization
+by doctrinarians and partly by the avarice of the privileged classes and
+the inertia of statesmen, the conditioned and transitory was looked upon as
+something absolute.<a name="fnanchor_A3-3-4" id="fnanchor_A3-3-4"></a><a
+href="#footnote_A3-3-4" class="fnanchor">[A3-3-4]</a></p>
+
+ <p class="footnote"> <a name="footnote_A3-3-1" id="footnote_A3-3-1"></a>
+ <a href="#fnanchor_A3-3-1">[A3-3-1]</a>
+ <i>P. de la Court</i>, in his freedom of trade, has in view not the
+ interest of consumers&mdash;and least of all of the whole world&mdash;but
+ the interest of the commercial class. Compare Tüb. Ztschr., 1862, p. 273.
+ Similarly, <i>Child</i>, Discourse of Trade, 1690; whereas <i>D.
+ North</i>, Discourses upon Trade (1690), may be called a free-trader in
+ the sense in which the expression is used to-day. No nation has yet grown
+ rich by state-measures; but peace, thrift and freedom, and nothing else,
+ procure wealth. (Postscr.) <i>Davenant</i> also zealously opposes the
+ craving of a people to produce everything themselves, to want only to
+ sell, etc. He considered very few laws on commerce a sign of a flourishing
+ condition of trade. (Works, I, 99, 104 ff.; V, 379 ff., 387 seq.)
+ <i>Fénélon's</i> antipathy for import and export duties in Telémaque, a
+ part of his general opposition to the <i>siècle de Louis XIV</i>. The view
+ of the Physiocrates (<i>La police du commerce interiéur et extérieur la
+ plus sure, la plus exacte, la plus profitable à la nation et à l'état
+ consiste dans la pleine liberté de la concurrence</i>: <i>Quesnay</i>,
+ Maximes générales, No. 25) is directly connected with their deepest
+ fundamental notions of <i>produit net</i> and <i>impôt unique</i>.
+ <i>Turgot</i> vindicates the interests of workmen against protective
+ duties, for whom no compensation is possible, where one industry gains by
+ its being favored in the same way that it loses when another is favored.
+ (Sur la Marque de Fer, I, p. 376 ff., Daire.) "Those who cry so loudly for
+ protective duties are partly thoughtless persons who wish to avoid the
+ consequences of bad speculations, and in part shrewd persons who would
+ like to earn during the first years a rate of profit higher than that
+ usual in the country." (<i>Rossi.</i>) <i>Bastiat</i> ridicules the
+ advocates of a protective tariff by the petition of the lamplighters, lamp
+ manufacturers, etc., that to advance their industry, and indirectly almost
+ all others, the mighty foreign competition of the sun might be removed
+ from all houses. (Sophismes écon., ch. 7.) To him, the protective system
+ is precisely the system of want; freedom of trade, the system of
+ superabundance. Political economy would have fulfilled its practical
+ calling, if, by means of universal freedom of trade, it had done away with
+ all that is left of that system which excludes foreign commodities because
+ they are cheap, that is, because they include <i>une grande proportion
+ d'utilité gratuite</i>. (Harmonies, p. 174, 306.) <i>Cobden's</i> pet
+ expression: "Free trade, the international law of the Almighty!" (Polit.
+ Writings, II, 110.) <i>K. S. Zachariä</i> calls the protective system a
+ step introductory to communism (Staatsw. Abh., 100), because it nearly
+ always leads to over-population and <i>List's</i> system, a
+ politico-economical absurdity. (Vierzig Bücher vom Staate, VII, pp. 23,
+ 92.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-3-2" id="footnote_A3-3-2"></a>
+ <a href="#fnanchor_A3-3-2">[A3-3-2]</a>
+ Among the many frequently wonderful speeches by which persons engaged in
+ industry are wont to support their motion for protective duties, etc., the
+ following are particularly characteristic. The long struggle of English
+ manufactures against the East Indian Company, since the later portion of
+ the seventeenth century. Compare <i>Pollexfen</i>, England and East India
+ inconsistent in their Manufactures (1697), against which <i>Davenant</i>,
+ at the solicitation of the company, wrote his Essay on the E. I. Trade
+ (1697). Prohibition of East Indian commodities, 11 and 12 Will. III., ch.
+ 10. The struggle did not stop until the middle of the eighteenth century,
+ when India was outflanked by English machines. When Pitt, in 1785, labored
+ for the abolition of the tariff-barriers against Ireland, English
+ manufacturers, and among others Robert Peel, declared that they would be
+ forced in consequence to transfer a part of their manufactories to
+ Ireland! (<i>McCulloch</i>, Literature of Political Economy, p. 55.)
+ <i>Say</i> tells of a proposition made by the hat-makers of Marseilles to
+ prohibit foreign straw hats (1. c).</p>
+
+ <p class="footnote"> <a name="footnote_A3-3-3" id="footnote_A3-3-3"></a>
+ <a href="#fnanchor_A3-3-3">[A3-3-3]</a>
+ W. of N., IV, ch. 2. According to <i>Roger Coke</i>, England's Improvement
+ (1675), ship-building in England became dearer in a few years by about
+ one-third, on account of the navigation act; and the wages of sailors
+ advanced to such an extent that England lost its Russian and Greenland
+ trade almost entirely, and the Dutch obtained the control of it. This
+ <i>J. Child</i>, Discourse of Trade, admits, but still calls the
+ navigation act the <i>magna charta maritima</i>. Similarly,
+ <i>Davenant</i>, Works, I, 397. Here the relation of the cost to the
+ immediate product can as little decide as it can against the exercise of
+ troops or the construction of forts. <i>Adam Smith</i> allows the same
+ reasons to apply to export premiums for sail-cloth and gunpowder (IV, ch.
+ 5). Recently, however, <i>Bülau</i> (Staatswirthschaftlehre, 339; Staat
+ und Industrie, 220 seq.;) has argued against all these exceptions of Adam
+ Smith.</p>
+
+ <p class="footnote"> <a name="footnote_A3-3-4" id="footnote_A3-3-4"></a>
+ <a href="#fnanchor_A3-3-4">[A3-3-4]</a>
+ <i>Schleiermacher</i> (Christ. Sitte, 476) calls the polemics which can
+ see nothing but error in a refuted theory, immoral.</p>
+
+<p class="p2 center">SECTION IV.<span class='pagenum'>[Pg 432]</span></p>
+
+<p class="center smaller">FURTHER EDUCATIONAL EFFECTS OF THE INDUSTRIAL
+PROTECTIVE SYSTEM.</p>
+
+<p>The sacrifices which the protective system directly imposes on the
+national wealth consist in products, fewer of which with an equal straining
+(<i>Anstrengung</i>) of the productive forces of the country, are produced
+and enjoyed, than free trade would procure. But it is possible by its means
+to build up (<i>bilden</i>) new productive forces, to awaken slumbering
+ones from their sleep, which, in the long run, may be of much greater value
+than those sacrifices. Who would say that the cheapest education is always
+the most advantageous?<a name= "fnanchor_A3-4-1" id=
+"fnanchor_A3-4-1"></a><a href= "#footnote_A3-4-1" class=
+"fnanchor">[A3-4-1]</a> Only by the development of industry also, does the
+nation's economy become mature.<a name="fnanchor_A3-4-2"
+id="fnanchor_A3-4-2"></a><a href="#footnote_A3-4-2"
+class="fnanchor">[A3-4-2]</a> The merely agricultural state can attain
+neither to the same population nor the same energy of capital, to say
+nothing of the same skillfulness of labor, as the mixed agricultural and
+industrial state; nor can it employ its natural forces so completely to
+advantage.<a name= "fnanchor_A3-4-3" id= "fnanchor_A3-4-3"></a><a href=
+"#footnote_A3-4-3" class="fnanchor">[A3-4-3]</a> How many beds of coal,
+waterfalls, hours of leisure,<a name="fnanchor_A3-4-4"
+id="fnanchor_A3-4-4"></a><a href= "#footnote_A3-4-4" class=
+"fnanchor">[A3-4-4]</a> and how much aptitude for the arts of <span
+class='pagenum'>[Pg 433]</span> industry, can be turned to scarcely any
+account in a merely agricultural state? If, therefore, the protective
+system could materially promote a national industry, or if it made such
+industry possible, for the first time, the sacrifice connected therewith,
+in the beginning, should be considered like the sacrifice of seed made by
+the sower;<a name="fnanchor_A3-4-5" id="fnanchor_A3-4-5"></a><a href=
+"#footnote_A3-4-5" class="fnanchor">[A3-4-5]</a> but this can be justified
+only on the three following conditions: that the seed is capable of
+germination; that the soil be fertile and properly cultivated, and the
+season favorable.<a name="fnanchor_A3-4-6" id="fnanchor_A3-4-6"></a><a
+href="#footnote_A3-4-6" class="fnanchor">[A3-4-6]</a> <a name=
+"fnanchor_A3-4-7" id="fnanchor_A3-4-7"></a><a href="#footnote_A3-4-7"
+class= "fnanchor">[A3-4-7]</a></p>
+
+ <p class="footnote"> <a name="footnote_A3-4-1" id="footnote_A3-4-1"></a>
+ <a href="#fnanchor_A3-4-1">[A3-4-1]</a>
+ <i>List</i>, Nationales System der polit. Oekonomie, kap. 12, contrasts two
+ owners of estates, each of whom has five sons, and can save 1,000 thalers
+ a year. The one brings his sons up as tillers of the ground (<i>Bauern</i>
+ = peasants) and puts his savings out at interest. The other, on the
+ contrary, has two of his sons educated as <i>rational</i>
+ (<i>rationelle</i>) agriculturists, and the others as intelligent
+ industrial workers, and at a cost which prevents the possibility of his
+ accumulating any more capital. Which of the two has cared better for the
+ standing, wealth, etc. of his posterity; the adherent of the "theory of
+ exchangeable values" or the adherent of the doctrine of "the productive
+ forces?"</p>
+
+ <p class="footnote"> <a name="footnote_A3-4-2" id="footnote_A3-4-2"></a>
+ <a href="#fnanchor_A3-4-2">[A3-4-2]</a>
+ The rent of the land of Gr. Botton, in Lancashire, was estimated in 1692
+ at £169 per annum; in 1841, at £93,916. (<i>H. Ashworth.</i>)</p>
+
+ <p class="footnote"> <a name="footnote_A3-4-3" id="footnote_A3-4-3"></a>
+ <a href="#fnanchor_A3-4-3">[A3-4-3]</a>
+ The pottery district of Staffordshire was formerly considered very
+ unfertile. It was industry that first showed how the rich and varied beds
+ of clay at the surface, and the wealth of coal under them, could be fully
+ utilized.</p>
+
+ <p class="footnote"> <a name="footnote_A3-4-4" id="footnote_A3-4-4"></a>
+ <a href="#fnanchor_A3-4-4">[A3-4-4]</a>
+ Blind free-traders always like to assume that every man capable of working
+ always busies himself; whereas idleness frequently excuses the wasting of
+ its time, by the plea that a remunerative market of the possible new
+ products is improbable, or at least uncertain. Compare <i>J. Möser</i>, P.
+ Ph., I, 4. <i>Kröncke</i>, Steuerwesen (1804), 324, 328 seq., and even the
+ first German reviewers of Adam Smith in <i>Roscher</i>, Gesch. der N. Oek.
+ in Deutschland, II, 599.</p>
+
+ <p class="footnote"> <a name="footnote_A3-4-5" id="footnote_A3-4-5"></a>
+ <a href="#fnanchor_A3-4-5">[A3-4-5]</a>
+ <i>List</i> calls attention to the case of the stenographic apprentice who
+ writes more slowly for a time than he was wont to formerly.</p>
+
+ <p class="footnote"> <a name="footnote_A3-4-6" id="footnote_A3-4-6"></a>
+ <a href="#fnanchor_A3-4-6">[A3-4-6]</a>
+ Let us suppose that a country had hitherto produced $10,000,000 worth of
+ corn, and that of this amount it had sent $1,000,000 worth into foreign
+ countries as a counter-value for foreign manufactured articles. It now, by
+ means of a protective tariff, establishes home manufactures, through the
+ instrumentality of which a coal bed or water fall is turned to account.
+ The workmen in the manufactories henceforth consume what was formerly
+ exported. Of course such a change is not effected without loss; but this
+ loss ceases as soon as the home industry becomes the equal of the foreign
+ industry which was crowded out. And then the forces which have been made
+ useful in the meantime appear as clear gain. <i>List</i> not unfrequently
+ called special attention to the fact that a consumption of 70,000 persons
+ engaged in home industries means as much to German agriculture as all that
+ it exported to England from 1833 to 1836. (Zollvereinsblatt, 1843, No.
+ 5.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-4-7" id="footnote_A3-4-7"></a>
+ <a href="#fnanchor_A3-4-7">[A3-4-7]</a>
+ <i>Adam Smith's</i> free-trade doctrine has always been contradicted in
+ Germany. Even in 1777, his first great reviewer, <i>Feder</i>, says that
+ many foreign commodities can be dispensed with without damage; and that
+ industries which indemnify the undertakers of them only after a time but
+ which are then very useful to the community in general, would not be begun
+ always without special favor shown them. (<i>Roscher</i>, Geschichte der
+ National Oekonomie, II, p. 599.) <i>Kröncke</i>, Steuerwesen, 324 ff.,
+ speaks of attempts towards the education of industries by taxation-favors:
+ "If of ten, only one succeeds, even that is to be considered a great
+ gain." But modern protectionists base themselves chiefly on their interest
+ in the independence of the country, precisely as the free-traders do on
+ that of individual freedom. <i>Ad. Müller</i>, with his organic way of
+ comprehending things, opposes the assumption of a merely mercantile
+ world-market, in which all the merchants engaged in foreign trade
+ constitute a species of republic. (<i>Quesnay.</i>) He also rejects on
+ national grounds the universal freedom of trade as well as the universal
+ empire akin to it; although as a means of opposing it, he suggests not so
+ much a protective tariff as the intellectual cultivation of nationality in
+ general. (Elemente der Staatskunst, 1809, II, 290, III, 215, II, 240,
+ 258.) According to <i>Sörgel</i> (Memorial an den Kurfürst v. Sachsen,
+ 1801,) commercial constraint (<i>Handelszwang</i>), by means of export and
+ import duties, is useful in the childhood of manufactures, afterwards
+ injurious, because the powerful incentive to perfection is wanting where
+ no competition is to be feared (67). <i>P. Kaufmann</i>, the opponent of
+ Smith's balance-theory, demands moderate protection against the otherwise
+ irresistible advantages to already developed industrial nations.
+ (Untersuchungen, 1829, I, 98 ff.) The principal advocate in this direction
+ is <i>Fr. List</i>, with a great deal of sense for the historical, but
+ with little historical erudition; and after the manner of an intelligent
+ journalist, he reproaches the free-trade school with baseless
+ cosmopolitanism, deadly materialism, and disorganizing individualism. He
+ distinguishes in the development of nations five different stages:
+ hunter-life, shepherd-life, agriculture, the agricultural-manufacturing
+ period, the agricultural-manufacturing-commercial period; and he demands
+ that the state should lend its assistance in the transition from the third
+ to the fourth stage, in the nursing or planting of manufacturing forces in
+ connection, throughout, with the enfeebling of feudalism and bureaucracy,
+ the increase of the middle class, with the power of public opinion,
+ especially of the press, the strengthening of the national consciousness
+ from within and without. Compare <i>Roscher's</i> review in the Gött.
+ gelehrten A. 1842, No. 118 ff. As to how List resembles, and differs from
+ Ad. Müller, see <i>Roscher</i>, Gesch. der N. O., II, 975 ff.; <i>von
+ Thünen's</i> independent defense of a protective tariff; Isolirter Staat,
+ II, 2, 81, 92 ff., 98; Leben, p. 255 seq. The socialist <i>Marlo</i>
+ (Weltökonomie, I, ch. 9, 10) distinguishes common products
+ (<i>Gemeinprodukte</i>) which may be obtained equally well in every
+ properly developed country, and peculiar products (<i>Sonderprodukte</i>),
+ like coffee, wine, etc. With respect to the former, he agrees with List;
+ in regard to the latter, with Smith. A protective tariff exerts a
+ constraint on consumers, compelling them to abridge their enjoyments
+ somewhat, and to employ these now in the procuring of instruments of
+ production, in the exercise of skill needed in production and the
+ accumulation of capital. At the same time foreigners should be kept from
+ utilizing home natural forces, and where possible, home manufactures
+ should be helped to utilize foreign natural forces. <i>Marlo</i>, indeed,
+ assumes, as one-sidedly as the followers of Smith do the contrary, that
+ without the tariff the workmen in question would not be employed at all;
+ but he is right in this, that the most fruitful employment of the forces
+ of labor, and the keeping of them most completely busy, mutually replace
+ each other. In France, even <i>Ferrier</i>, Du Gouvernement considéré dans
+ ses Rapports avec le Commerce (1808), had defended the Napoleonic
+ continental system. See <i>Ganilh</i>, the French List, Theorie de
+ l'Economie politique (1822), who grades the branches of a nation's economy
+ in a way the reverse of Adam Smith, and finds the protective system
+ necessary for the less developed nations, to the end that they may not be
+ confined to the most disadvantageous employments of capital (II, p. 192
+ ff.). Especially is a greater population made possible in this way (248
+ ff.). Similarly, <i>Suzanne</i>, Principes de l'E. polit., 1826. Further,
+ <i>H. Richelot</i>, List's translator. <i>M. Chevalier</i>, who recommends
+ free trade for France in our day so strongly, approves the system of
+ Cromwell and Colbert for their own time, and for a long time afterwards
+ (Examen du Système commercial, 1851, ch. 7): a view which <i>Périn</i>
+ says is now shared by "all serious writers." (Richesse dans les Sociétés
+ Chrétiennes, 1861, I, p. 510.) <i>Demesnil-Marigny</i>, Les libres
+ Échangistes et les Protectionistes conciliés (1860), bases his protective
+ system on this, chiefly, that it may greatly enhance the money-value of a
+ nation's resources to the detriment of other nations, especially by the
+ transformation of agricultural labor, estimated in money, into the much
+ more productive labor of industry. The value in use of all the national
+ resources<a name= "fnanchor_TN131" id= "fnanchor_TN131"></a><a href=
+ "#footnote_TN131" class= "fnanchor">[TN 131]</a> is doubtless greatest
+ where full freedom of trade obtains. In Russia, <i>Cancrin</i> demands
+ that every nation should be to some extent independent in respect to all
+ the chief wants to the production of which it has at least a middle
+ (<i>mittlere</i>) opportunity; especially as all civilization, even the
+ higher development of agriculture, must proceed from the cities.
+ (Weltreichthum, 1821, 109 ff. Oekonomie der menschlichen Gesellschaften,
+ 1845, 10, 235 ff.) America's most distinguished protectionist is
+ <i>Hamilton</i>, Report on the Subject of Manufactures presented to the
+ House of Representatives, December 5, 1791. <i>Jefferson's</i> saying,
+ that the industry should settle by the side of agriculture, leads us to
+ <i>Carey</i>, who repeats the same idea with wearying unwearisomeness; at
+ first for the reason that the "machine of exchange" should not be allowed
+ to become too costly; but afterwards rather from the Liebig endeavor to
+ prevent the exhaustion of the soil. He describes, indeed, how the East
+ Indian producer and consumer of cotton are united with one another by a
+ pontoon bridge which leads over England. (Principles of Social Science, I,
+ 378.) A good soil and good harbors are the greatest misfortune for a
+ country like Carolina if free trade prevails, because it is turned into an
+ agricultural country (I, 373). The people who, after the manner of the
+ Irish, gradually export their soil, will end by exporting themselves.
+ <i>Carey</i> would force colonies to demean themselves like old countries
+ from the first. If corn be worth 25 cents in Iowa, and in Liverpool $1,
+ for which 20 ells of calico are brought back, the Iowa farmer receives of
+ this quantity about 4 ells. Hence it would be no injury to him were he to
+ supply his want of cotton from a neighbor who produced it at a cost four
+ times as great as the Englishmen. Analogies drawn from natural history,
+ as, for instance, that every organism, the lower it is in the scale of
+ existence, the greater is the homogeneity of its several parts; also a
+ deep aversion for centralization, and hatred of England, coöperate in
+ <i>Carey's</i> recommendation of the protective system, often called in
+ the United States the "American system," in opposition to the "British,"
+ advocated by Webster against Calhoun and Clay against Jackson. <i>John
+ Stuart Mill</i>, Principles, V, ch. 10, 1, allows a protective tariff
+ temporarily, "in hopes of naturalizing a foreign industry in itself
+ perfectly suitable to the circumstances of the country." Peel's colleague,
+ G. Smythe, said, in 1847, at Canterbury, that as an American (citizen of a
+ young country) or as a Frenchman (citizen of an old country with its
+ industry undeveloped), he would be a protectionist. (Colton, Public
+ Economy, p. 81.) Even <i>Huskisson</i> admitted, in 1826, that England in
+ the seventeenth century had been very much advanced by its protective
+ system; and that he would continue to vote even now for its maintenance,
+ if there were no reprisals to fear.</p>
+
+<p class="p2 center">SECTION V.<span class='pagenum'>[Pg 434]</span></p>
+
+<p class="center smaller">PROTECTION AS A POLICY.</p>
+
+<p>A. So long as a nation is, indeed, politically independent, but
+economically in a very low stage, it is best served by entire freedom of
+trade with the outside world; because such freedom causes the influences of
+the incentives, wants, and the means of satisfaction of a higher
+civilization to be soonest felt in the country.</p>
+
+<p><span class='pagenum'>[Pg 435]</span>B. The further advance which
+consists in the development of home industries by the country itself, may,
+indeed, be rendered exceedingly difficult by the unrestricted competition
+of foreign industries, which are already developed. The carriers <span
+class='pagenum'>[Pg 436]</span> on of industry in an old industrial country
+have a superiority over those in the new, in the amount of capital, the
+lowness of the rate of interest, the skill of undertakers
+(<i>Unternehmer</i>) and workmen, generally, also in the consideration in
+which the whole country hold industry, and the interest they take in it;<a
+name="fnanchor_A3-5-1" id="fnanchor_A3-5-1"></a><a href="#footnote_A3-5-1"
+class="fnanchor">[A3-5-1]</a> while in the country which has hitherto been
+merely agricultural, it happens only too frequently that industry is
+undervalued, <span class='pagenum'>[Pg 437]</span> and that young
+industrial talent is, as a consequence, forced to emigrate. How frequently
+it has happened that England by keeping down her prices for a time has
+strangled her foreign rivals.<a name= "fnanchor_A3-5-2" id=
+"fnanchor_A3-5-2"></a><a href= "#footnote_A3-5-2" class=
+"fnanchor">[A3-5-2]</a> Even on the supposition of equal natural capacity,
+the struggle between the two industries would come to a close similar to
+that between a boy of buoyant spirits and an athletically developed man.
+What then is to be said of the cases in which the more highly developed
+nation is at the same time possessed of the more favorable natural
+advantages, such, for instance, as England possesses over Russia in her
+incomparable situation in relation to the trade of the world, and which
+gives her for all distant countries, without any active commerce, a
+monopoly-like advantage; farther, her magnificent harbors, streams, her
+well-situated wealth in iron and coal, etc. The advantages of mere priority
+weigh most heavily, when the great development of all means of
+transportation almost does away with the natural protection afforded by
+remoteness; and when, at the same time, a certain universality of fashion,
+which, as a rule, is governed by the most highly developed nations, causes
+national and local differences of taste, which could be satisfied only by
+national or local production, to become obsolete.<a name="fnanchor_A3-5-3"
+id= "fnanchor_A3-5-3"></a><a href="#footnote_A3-5-3" class=
+"fnanchor">[A3-5-3]</a> Under such circumstances, it would be possible,
+that a whole nation might be <span class='pagenum'>[Pg 438]</span> made
+continually to act the part of an agricultural district (<i>plattes
+Land</i>), to one earlier developed, leaving to the latter, almost
+exclusively, the life of the city and of industry.<a name="fnanchor_A3-5-4"
+id="fnanchor_A3-5-4"></a><a href="#footnote_A3-5-4" class=
+"fnanchor">[A3-5-4]</a> A wisely conducted protective system might act as a
+preventive against this evil, the temporary sacrifices which such a system
+necessitates being justifiable where some of the factors of industrial
+production unquestionably exist but remain unused, because others, on
+account of the mere posteriority of the nation, cannot be built up. The
+abusive term "hot-house plant" should not be used where there is question
+only of transitory protection, and where there is the full intention to
+surrender the grown tree to all the wind, rain and sunshine of free
+competition, and where it is foreseen that it shall be so surrendered.<a
+name="fnanchor_A3-5-5" id="fnanchor_A3-5-5"></a><a href="#footnote_A3-5-5"
+class="fnanchor">[A3-5-5]</a> <a name="fnanchor_A3-5-6" id=
+"fnanchor_A3-5-6"></a><a href="#footnote_A3-5-6" class=
+"fnanchor">[A3-5-6]</a> The want of a certain economic many-sidedness which
+must <span class='pagenum'>[Pg 439]</span> be given to a nation manifests
+itself in a particularly urgent manner in times of protracted war. Here the
+error of so many free-traders, that different states should comport
+themselves towards one another as the different provinces of the same state
+do, is most clearly refuted.<a name="fnanchor_A3-5-7" id=
+"fnanchor_A3-5-7"></a><a href="#footnote_A3-5-7" class=
+"fnanchor">[A3-5-7]</a></p>
+
+<p>C. No less important is the political side of the question. Since the
+protective system forces capital and labor away from the production of raw
+material and into industry, it exerts a great influence on the relations of
+the classes or estates of a country to one another. The immense
+preponderance possessed in medieval times by the nobility, agriculture, the
+country in general as contradistinguished from the city, by the
+aristocratic and conservative elements, is curtailed in favor of the
+bourgeoisie, of industry, of the cities generally, and of the democratic
+and progressive elements. If when the history of a nation is at its highest
+point, there is supposed a certain equilibrium of the different elements,
+all of which are equally necessary to the prime of a nation's life, this
+height is now attained sooner than it would otherwise be. It is no mere
+accident that in almost every instance, those monarchs who humbled the
+medieval nobility and introduced the modern era, also established a
+protective system.<a name="fnanchor_A3-5-8" id="fnanchor_A3-5-8"></a><a
+href="#footnote_A3-5-8" class="fnanchor">[A3-5-8]</a></p>
+
+<p><span class='pagenum'>[Pg 440]</span>D. However, such an education of
+industry can be attempted with proper success only on a large scale, that
+is, on a national basis. The least hazardous (<i>unbedenklich</i>) measure
+of the system, import-duties supposes a relatively short boundary line,
+such as only a great country, even where its formation is the most
+favorable imaginable, can possess.<a name="fnanchor_A3-5-9" id=
+"fnanchor_A3-5-9"></a><a href= "#footnote_A3-5-9" class=
+"fnanchor">[A3-5-9]</a> The greater the tariff territory
+(<i>Zollgebiet</i>), the less one-sided is its natural capacity wont to be,
+the sooner may an active competition in its interior be built up, while the
+foreign market always suffers from uncertainty. Hence all tariff-unions
+(<i>Zollverein</i>) between related states are to be recommended not only
+as financially but also as economically advantageous. Between states not
+related and of equal power, so far-reaching a reciprocity, embracing nearly
+the whole of economic policy, can scarcely be established; and it would be
+still harder for it to continue long. If the states not related are of very
+unequal power, the probable consequence would be the early absorption of
+the weaker by the stronger.<a name="fnanchor_A3-5-10" id=
+"fnanchor_A3-5-10"></a><a href="#footnote_A3-5-10" class=
+"fnanchor">[A3-5-10]</a> <a name="fnanchor_A3-5-11" id=
+"fnanchor_A3-5-11"></a><a href="#footnote_A3-5-11" class=
+"fnanchor">[A3-5-11]</a></p>
+
+ <p class="footnote"> <a name="footnote_A3-5-1" id="footnote_A3-5-1"></a>
+ <a href="#fnanchor_A3-5-1">[A3-5-1]</a>
+ What an advantage it has been to English industry and commerce that the
+ state here so long considered it a matter of honor to have its subjects
+ well represented in foreign countries, to extend their market, etc.</p>
+
+ <p class="footnote"> <a name="footnote_A3-5-2" id="footnote_A3-5-2"></a>
+ <a href="#fnanchor_A3-5-2">[A3-5-2]</a>
+ <i>Hume</i>, in the parliamentary session of 1828, uses the expression
+ "strangulate," to convey this idea. As early as 1815, Brougham said: "It
+ was well worth while to incur a loss on the exportation of English
+ manufactures in order to stifle in the cradle the foreign manufactures."
+ The report of the House of Commons on the condition of the mining district
+ (1854) speaks of the great losses, frequently in from three to four years,
+ of £300,000 to £400,000, which the employers of labor voluntarily
+ underwent, in order to control foreign markets. "The large capitals of
+ this country are the great instruments of warfare against the competing
+ capital of foreign countries, and are the most essential instruments now
+ remaining by which our manufacturing supremacy can be maintained."</p>
+
+ <p class="footnote"> <a name="footnote_A3-5-3" id="footnote_A3-5-3"></a>
+ <a href="#fnanchor_A3-5-3">[A3-5-3]</a>
+ Before the development of the machinery system, also, the preponderance of
+ the greatest industrial power could not be nearly as oppressive as later;
+ especially as in highly developed commercial countries, the wages of labor
+ are always high. (<i>List</i>, Zollvereinsblatt, 1843, No. 44, 1845, No.
+ 5, ff.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-5-4" id="footnote_A3-5-4"></a>
+ <a href="#fnanchor_A3-5-4">[A3-5-4]</a>
+ "Shall the forester wait until the wind in the course of centuries carries
+ the seed from one place to another, and the barren heath is converted into
+ a dense wood?" (<i>List</i>, Gesammelte Schriften, III, 123 seq.) When the
+ Romans had conquered an industrial country, its industries began generally
+ to flourish better, because of the greater market opened to them; whereas,
+ those which had no industries before, continued, for the most part, to
+ remain producers of the raw material after the conquest, also. Related to
+ this is the phenomenon, that the provinces not favored by nature, were
+ much less backward in the middle ages than they are to-day. Compare the
+ description of the misery of Mitchelstown, after the Earl of Kingston had
+ ceased to consume £40,000 there: <i>Inglis</i>, Journey through Ireland,
+ 1835, I, 142. The royal commission appointed to investigate the misery of
+ Spessart in 1852, show that the home-made clothing had gone out of use
+ there, and that the wooden shoes, so well adapted to wooded countries, had
+ been changed for leather ones. This becoming acquainted with foreign wants
+ in a region not adapted to industries, without a large market, greatly
+ increased the distress. As soon as such a region becomes an independent
+ state, a productive system would suggest itself.</p>
+
+ <p class="footnote"> <a name="footnote_A3-5-5" id="footnote_A3-5-5"></a>
+ <a href="#fnanchor_A3-5-5">[A3-5-5]</a>
+ <i>List</i> very well remarks that otherwise most of our fruit trees,
+ vines, domestic animals would be "hot-house plants." And even men are
+ brought up in the hot-house of the nursery, the school, etc.
+ (Zollvereinsblatt, 1843, No. 36.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-5-6" id="footnote_A3-5-6"></a>
+ <a href="#fnanchor_A3-5-6">[A3-5-6]</a>
+ That a posterior people would never be in a condition to establish
+ industries of their own, where full freedom of trade prevails, I do not by
+ any means assert. Compare the list of industries which attained to so
+ flourishing a condition without the aid of a protective tariff, that they
+ were able to supply foreign markets, in <i>Rau</i>, Lehrbuch, II, § 206,
+ a. But when Switzerland is so frequently cited as an illustration in this
+ connection (<i>J. Bowring</i>, On the Commerce and Manufactures of
+ Switzerland, 1836), people forget the many favorable circumstances of
+ another kind which coöperated here to elevate industry; a neutrality of
+ three hundred years, during the French Huguenot War, the Thirty Years'
+ War, the Wars of Louis XIV., and as a consequence of this, no military
+ budgets, few taxes and state debts, etc. In addition to this, at an
+ earlier period, the many mercenary troops, and afterwards the foreign
+ travelers.</p>
+
+ <p class="footnote"> <a name="footnote_A3-5-7" id="footnote_A3-5-7"></a>
+ <a href="#fnanchor_A3-5-7">[A3-5-7]</a>
+ As free trade in Holland's best period was more an international law than
+ a politico-economical system, so, afterwards, the Dutch protective system
+ grew out of war prohibitions; and, in times of peace, the newly
+ established industry was not abandoned. At last, in the time of its
+ decline, all industries, with a strange logic, sought protection, even the
+ most ancient one, the one whose growth was the most natural, the
+ fisheries. (<i>Laspeyres</i>, Gesch. der volksw. Ansch., 134 ff., 146,
+ 159.) The United States, during the war of 1812, with England, doubled
+ their protective duties. (<i>A. Young</i>, Report on the Customs-tariff
+ Legislation of the U. S., 1874.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-5-8" id="footnote_A3-5-8"></a>
+ <a href="#fnanchor_A3-5-8">[A3-5-8]</a>
+ Hence, we should not judge the Russian and the American systems of
+ industrial protection, for instance, by the same rule. In Russia, it may
+ be necessary to strengthen artificially the still weak bourgeoisie, and to
+ awaken numberless slumbering forces and opportunities by encouragement of
+ their use by state measures. Here, also, the absolute ruler is called
+ upon, and accustomed to educate his people. In the United States, on the
+ other hand, there is no nobility; the whole nation belongs to the class of
+ burghers, and even the cultivators of the land are raisers of corn, cattle
+ traders, land speculators etc. Considering the universal activity and
+ laborious energy of the people, it is to be expected that every really
+ profitable opportunity will be turned to account in such a country,
+ without any suggestion or assistance from the state. Here, therefore,
+ <i>A. Walker's</i> saying is true: America should produce no iron, not
+ because it does not know how, because it has not sufficient capital,
+ because the nature of the country is not adapted to it, or because it has
+ no natural protection, but "because we can do better." (Sc. of W., 94
+ seq.) Since a democracy cannot, properly speaking, educate the people, the
+ protective duties of the United States are, for the most part, only
+ attempts by one part of the people, who claim to be the whole, to prey
+ upon the other parts.</p>
+
+ <p class="footnote"> <a name="footnote_A3-5-9" id="footnote_A3-5-9"></a>
+ <a href="#fnanchor_A3-5-9">[A3-5-9]</a>
+ If we suppose three countries, each in the form of a square: A = 1 sq. m.,
+ B = 100 sq. m., C = 10,000 sq. m.; there is in A for every mile of
+ boundary ¼ sq. m. of inland country; in B, 2½ in C, 25.</p>
+
+ <p class="footnote"> <a name="footnote_A3-5-10" id="footnote_A3-5-10"></a>
+ <a href="#fnanchor_A3-5-10">[A3-5-10]</a>
+ Towards the close of the middle ages, the vigorous commercial policy of
+ Venice, for instance, towards Greece, or the Mohammedan power, was
+ thwarted by other Italian cities, Genoa, Pisa, and later, by Florence
+ especially.</p>
+
+ <p class="footnote"> <a name="footnote_A3-5-11" id="footnote_A3-5-11"></a>
+ <a href="#fnanchor_A3-5-11">[A3-5-11]</a>
+ Why most of the reasons above advanced do not apply to a corresponding
+ "protection" of agriculture by duties on corn, see <i>Roscher</i>,
+ Nationalökonomik des Ackerbaues, § 159 ff.</p>
+
+<p class="p2 center">SECTION VI.<span class='pagenum'>[Pg 441]</span></p>
+
+<p class="center smaller">WHY THE PROTECTIVE SYSTEM WAS ADOPTED.</p>
+
+<p>This explains why so many nations in the periods of transition between
+their medieval age and their higher stages of civilization, adopted the
+industrial protective system.<a name="fnanchor_A3-6-1" id="fnanchor_A3-6-1">
+</a><a href="#footnote_A3-6-1" class= "fnanchor">[A3-6-1]</a> <a name=
+"fnanchor_A3-6-2" id= "fnanchor_A3-6-2"></a><a href="#footnote_A3-6-2"
+class= "fnanchor">[A3-6-2]</a> <a name="fnanchor_A3-6-3" id=
+"fnanchor_A3-6-3"></a><a href="#footnote_A3-6-3" class=
+"fnanchor">[A3-6-3]</a> <a name="fnanchor_A3-6-4" id="fnanchor_A3-6-4"></a>
+<a href="#footnote_A3-6-4" class= "fnanchor">[A3-6-4]</a> <a name=
+"fnanchor_A3-6-5" id= "fnanchor_A3-6-5"></a><a href= "#footnote_A3-6-5"
+class= "fnanchor">[A3-6-5]</a> <a name= "fnanchor_A3-6-6" id=
+"fnanchor_A3-6-6"></a><a href= "#footnote_A3-6-6" class=
+"fnanchor">[A3-6-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_A3-6-1" id="footnote_A3-6-1"></a>
+ <a href="#fnanchor_A3-6-1">[A3-6-1]</a>
+ The fact that among the ancients there was so little thought bestowed on
+ the protection of industry is related to the comparative insignificance of
+ their industry. Compare <i>Roscher</i>, Ansichten der Volkswirthschaft, 3
+ ed., 1878, vol. 1, p. 23 ff. It occasionally happened in the east that
+ workers in metal, especially the makers of metallic weapons, were dragged
+ out of the country. I <i>Sam.</i>, 13, 19; II <i>Kings</i>, 24, 14 ff.;
+ <i>Jerem.</i>, 24, 1, 29, 2. Among the Jews, certain costly products were
+ subjected to export prohibitions for fear that the heathen might use them
+ for purposes of sacrifice. (<i>Mischna</i>, De Cultu peregr., § 6.)
+ Persian law, that the king should consume only home products:
+ <i>Athen.</i>, V, p. 372; XIV, p. c. 62. The Athenians went farthest in
+ reducing such provisions to a system. Solon had strictly prohibited the
+ exportation of all raw material save oil (<i>Plutarch</i>, Sol., 24), and
+ a complaint was allowed against any one who scoffed at a citizen because
+ of the industry he carried on in the market. (<i>Demosth.</i>, adv.
+ Eubul., p. 1308.) The exportation of corn was always prohibited; also that
+ of the principal materials used in ship-building. In war, prohibitions of
+ the exportation of weapons; importation from enemy countries also
+ prohibited. No Athenian was permitted to loan money on ships which did not
+ bring a return cargo to Athens (<i>Demosth.</i> adv. Lacrit., p. 941), nor
+ carry wheat to any place but Athens. (<i>Böckh.</i>, Staatsh. der Ath., I,
+ 73 ff.) In Argos and Ægina, the importation of Athenian clay commodities
+ and articles of adornment, prohibited. (<i>Herodot.</i>, V, 88; Athen.,
+ IV, 13; XI, 60.)</p>
+
+ <p class="footnote">The Athenians imposed a duty of two per cent. both on
+ imports and exports. Similarly, in Rome, where the higher duties imposed
+ on many articles of luxury served an ethico-political purpose. We have,
+ besides, accounts of prohibitions of the exportation of money:
+ <i>Cicero</i>, pro Flacco, 28 (L., 2, Cod. Just., IV, 63). Plato's advice
+ to prohibit the importation of luxuries and the exportation of the means
+ of subsistence (<i>De Legg.</i>) on ethico-political considerations; and
+ the Byzantine prohibition of the exportation of certain articles of
+ display from court vanity. (Porph. Decaerim, p. 271 ff. Reiske.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-6-2" id="footnote_A3-6-2"></a>
+ <a href="#fnanchor_A3-6-2">[A3-6-2]</a>
+ In Italy's best period, the protective system bears a specifically
+ municipal complexion; in democracies, a guild-complexion; the former
+ especially because of the many differential duties in favor of the
+ capital.</p>
+
+ <p class="footnote">A very highly-developed protective system in Florence.
+ The exportation of the means of subsistence forbidden (Della Decima, II,
+ 13), and so likewise the importation of finished cloths. (Stat Flor.,
+ 1415, V, p. 3; Rubr., 32, 39, 41, 43, 45.) In the streets devoted to the
+ woolen industries, it was not permitted to give the manufacturers notice
+ to quit their dwellings, nor to increase their rent, unless the
+ connoisseurs in the industry had admitted a higher rate of profit.
+ (Decima, II, 88.) In order to promote the silk industry, the importation
+ of silk-worms and of the mulberry leaf was freed from the payment of
+ duties in 1423, the exportation of raw silk, cocoons and of the mulberry
+ leaf forbidden in 1443; and in 1440, every countryman was commanded to
+ plant mulberry trees. (Decima, II, 115.) When Pisa was subdued, the
+ Florentines reserved to themselves all the wholesale trade, and prohibited
+ there all silk and woolen industries. (<i>Sismondi</i>, Gesch. der
+ italienischen Republic, XII, 171.) It was a principle followed by Milan in
+ its best period, to exempt manufacturers from taxation. Yearly subsidies,
+ accorded about 1442, to Florentine silk-manufacturers, who immigrated; in
+ 1493, a species of <i>expropriation</i>, in case of houses which a
+ neighbor needed for manufacturing purposes. (<i>Verri</i>, Mem. Storiche,
+ p. 62.) Bolognese prohibition of the exportation of manuscripts, because
+ they wanted to monopolize science. (<i>Cibrario</i>, E. polit. del. medio.
+ Evo., III, 166.) Even in the seventeenth century, a city like Urbino
+ forbade the exportation of cattle, wheat, wood, wool, skins, coal, as well
+ as the importation of cloth, with the exception of the very costliest
+ kinds. (Constitut. Due. Urbin., I, p. 388 ff., 422 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-6-3" id="footnote_A3-6-3"></a>
+ <a href="#fnanchor_A3-6-3">[A3-6-3]</a>
+ In England, since the fourteenth century, all genuinely national and
+ popular kings always bore it in mind both to secure emancipation from the
+ Hanseates, to invite foreigners skilled in industry to the country (the
+ Flemings since 1331, although the English people disliked to see them
+ come; <i>Rymer</i>, Foedd., IV, 496) and to adopt protective measures,
+ especially when they had reason to rely on the bourgeoisie. (<i>Pauli</i>,
+ Gesch. von England, V, 372.) The precursors of the navigation act, 1381,
+ 1390, 1440. (<i>Anderson</i>, Origin of Commerce.) The prohibition of
+ exporting raw wool (1337, II Edw. III., c. 1 ff.) lasted only one year.
+ Wool remained a long time still so much of a chief staple commodity that
+ in 1354, for instance, £277,000 worth were exported; of all other
+ commodities taken together, only £16,400. (<i>Anderson.</i>) On the other
+ hand, the prohibition to import foreign stuffs (1337), for instance, was
+ repeated in 1399, and the prohibition to export woolen yarn and unfulled
+ cloths in 1376, 1467, 1488. The statutes of employment operated very
+ generally. The statutes provided that foreign merchants should employ the
+ English money they received only to purchase English commodities, and
+ their hosts, with whom they were obliged to live, had to become security
+ therefor. Thus, in 1390, 4 Henry IV., c. 15, and 15 Henry IV., c. 9; 18
+ Henry VI., c. 4, 1477. Prohibitions of the exportation of money, 1335,
+ 1344, 1381. Even in the case of payment by the bishops to the pope, the
+ exportation of money was forbidden in 1391, 1406, 1414. Henry VIII. (3
+ Henry VIII., c. 1) threatened the exportation of money with the penalty of
+ double payment. Even in 1455, the importation of all finished silk wares
+ was prohibited for five years. See a long list of similar prohibitions in
+ <i>Anderson</i>. The prohibitions relating to the exporting of raw
+ materials, and especially wool, were exceedingly strict in Elizabeth's
+ time, and stricter yet in the seventeenth century. The penalty of death
+ was attached to their violation, and producers subjected to the most
+ burthensome control. Moderated especially by 8 Geo. I., c. 15. In the
+ eighteenth century we again find a series of import-premiums for raw
+ material from the English colonies. Compare <i>Adam Smith</i>, IV, ch.
+ 8.</p>
+
+ <p class="footnote"> <a name="footnote_A3-6-4" id="footnote_A3-6-4"></a>
+ <a href="#fnanchor_A3-6-4">[A3-6-4]</a>
+ <i>Sismondi</i>, Histoire des Français, XIX, 126, considers as the
+ beginning of the French industrial protective system, the edict of 1572,
+ by which, with a view of promoting the woolen, hemp and linen
+ manufactures, the exportation of the raw material and the importation of
+ the finished commodities are prohibited. (<i>Isambert</i>, Recueil, XIV,
+ p. 241.) Yet even Philip IV., in 1302, had prohibited the exportation of
+ the precious metals, of corn, wine and other means of subsistence.
+ (Ordonn., I, 351, 372.) About 1332, the decision of the question whether
+ the exportation of wool also should be forbidden was made to depend on who
+ offered the most, the raw-producers or those engaged in industry.
+ (<i>Sismondi</i>, X, 67 seq.) The third estate not unfrequently asked for
+ protective measures from the parliaments: thus, in 1484, a prohibition
+ against the importation of cloth and silk stuffs, and against the
+ exportation of money (<i>Sismondi</i>, XIV, 673), claims which went much
+ further in 1614, when freedom of trade, reform of the guilds, etc., were
+ desired. Opposition of Sully to the industrial-political measures of Henry
+ IV., whose prohibition of foreign and gold stuffs lasted scarcely one
+ year. (<i>Forbonnais</i>, Finances de Fr., c. 44.) The edict of 1664,
+ which, for the first time, created a boundary tariff-system for the
+ greater part of France, with the removal of numerous export and import
+ duties of the several provinces, and the abolition even of the
+ duty-liberties of the King's court, marks an epoch. The introduction in
+ which Colbert lets the King speak of his services to the taxation-system,
+ the marine, colonies, etc., in which he describes the chaos of those
+ earlier duties, and demonstrates their desirability of doing away with
+ them, is very interesting. Colbert, inconsistently enough, allowed a
+ number of export duties for industrial products to remain, that he might
+ not alienate any domanial rights. (<i>Forbonnais</i>, I, 352.) The tariff,
+ then very moderate, was, in 1677, doubled in part, and even trebled, which
+ provoked retaliation, and led to the war of 1672. Hence, in 1678, the
+ tariff of 1664 was, for the most part, restored. Colbert entirely
+ prohibited these commodities, which were still imported, spite of the
+ tariff: thus, Venetian mirrors and laces in 1669 and 1671. Among his
+ characteristic measures are the export-premiums for salt-meats which went
+ to the colonies in order to draw this business away from Holland to
+ France. (<i>Forbonnais</i>, I, 465.) He caused the transit between
+ Portugal and Flanders to be made through France by providing that it
+ should be carried on by means of royal ships at any price.
+ (<i>Forbonnais</i>, I, 438.) Compare <i>Clement</i>, Histoire de la vie et
+ de l'Administration de C. (1846). <i>Jonbleau</i>, Études sur C. ou
+ Exposition du Système d'Économie Politique suivi de 1661 à 1683 (II,
+ 1856). Lettres, Instructions et Mémoires de C. publiés par Clément (1861
+ ff.).</p>
+
+ <p class="footnote"> <a name="footnote_A3-6-5" id="footnote_A3-6-5"></a>
+ <a href="#fnanchor_A3-6-5">[A3-6-5]</a>
+ In Germany, the tariff projects of the empire of 1522, contemplated no
+ protection, inasmuch as imports and exports were equally taxed, but the
+ importation of the most necessary means of subsistence was left free.
+ Prohibition of the exportation of the precious metals in 1524; of the
+ exportation of raw wool <i>mit grossen Haufen</i> (R. P. O., of 1548, art.
+ 21; 1566, and in the R. P. O. of 1577, limited to the pleasure of the
+ several districts). Hence, in Brandenburg, 1572 and 1578, the Saxons,
+ Pommeranians and Mecklenburghers were prohibited to export wool and to
+ import cloth, in retaliation. Individual states had much earlier adopted
+ protective measures: Göttingen, in 1430, prohibited the exportation of
+ yarn, and in 1438, the wearing of foreign woolen stuffs. (<i>Havemann</i>,
+ Gesch. von Braunschweig und Luneburg, I, 780 seq.) Hanseatic politics
+ recall in many respects the Venetian. After 1426, the sale of Prussian
+ ships to non-Hanseates was made as difficult as possible; and in 1433, the
+ importation of Spanish wool was prohibited in order to compel the payment
+ of debts by Spain. (<i>Hirsch</i>, Gesch. des Danziger, H. 87, 268.)
+ Prohibition of the exportation of the precious metals to Russia at the end
+ of the thirteenth century. <i>Sartorius</i>, II, 444, 453, III, 191. The
+ elector, Augustus of Saxony, forbade the exportation of corn, wool, hemp
+ and flax (Cod. Aug. I., 1414). The Bavarian L. O., of 1553, prohibits
+ generally the sale of corn, cattle, malt, tallow, leather or other
+ <i>Plennwerthe</i> to foreigners; which prohibition was, in 1557, limited
+ to cattle, malt, tallow, wool and yarn.</p>
+
+ <p class="footnote">The protective system received its most important
+ development in Prussia. Prohibition by the margrave, about the end of the
+ thirteenth century, of the exportation of woolen yarn. (<i>Stengel</i>,
+ Pr. Gesch., I, 84.) In the privilege accorded to the weavers of woolen
+ wares, in 1414, the importation of the less important cloths is forbidden
+ for two years. (<i>Droysen</i>, Preuss. Gesch. I, 323.) The prohibition of
+ the exportation of wool of 1582 assigns as a reason of the prohibition,
+ that the numerous leading weavers should not be ruined for the sake of a
+ few unmarried journeymen and sellers. (<i>Mylius</i>, C. C. M., V, 2,
+ 207.) In the prohibitions of 1611 and 1629, the domains, the estates of
+ prelates and knights were exempted; similarly, in Saxony, 1613-1626; which
+ is one of the many symptoms of the then growing <i>Junkerthum</i>. The
+ great elector, who attached, both in war and peace, great value to the
+ possession of coasts, men-of-war and colonies, forbade, for instance, the
+ importation of copper and brass wares (1654), of glass (1658), of steel
+ and iron (1666), of tin (1687); farther, the exportation of wool (1644),
+ leather (1669), skins and furs (1678), silver (1683), rags (1685). Home
+ commodities were, for the most part, stamped with the elector's arms, and
+ all which were not so stamped were prohibited. The prohibition was
+ generally preceded by a notice that the elector had himself established or
+ improved a manufactory, or that the guilds (<i>Innungen</i>) had entered
+ complaints against foreign competition. Not till 1682 did the idea occur
+ to impose a moderate excise on the home product to be favored, and a much
+ higher duty on the foreign one; thus in the case of sugar. (<i>Mylius</i>,
+ IV, 3, 2, 16.) Frederick I. continued this system especially for the
+ forty-three branches of industry hitherto unknown, and the introduction of
+ which was contemporaneous with the reception of the Huguenots.
+ (<i>Stengel</i>, 3, 48, 208.) Frederick William I., in 1719 and 1723,
+ threatened the exportation of wool, under certain circumstances, with
+ death. (<i>Mylius</i>, V, 2, 4, 64, 80.) The severity with which he
+ insisted that his officials and officers should wear only home cloth is
+ characteristic; and the fact that in 1719 he threatened tailors who worked
+ foreign cloth, with heavy money fines and the loss of their guild-rights.
+ At the same time all workers in wool were freed from military duty, and
+ capitalists who had loaned money to wool manufacturers were given a
+ preference (1729). Frederick the Great, who continued nearly all this,
+ prohibited the exportation of Silesian yarn, with the exception of the
+ very coarsest and finest, as well as of that which had been bleached. Its
+ exportation was allowed to Bohemia only, because from here the linen went
+ back again to Silesia to be bleached and sold there. (<i>Mirabeau</i>, De
+ la Monarchie Pruss., II, 54.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-6-6" id="footnote_A3-6-6"></a>
+ <a href="#fnanchor_A3-6-6">[A3-6-6]</a>
+ Important beginnings of a protective system in Sweden, under Gustavus
+ Wasa, and again under Charles IX., the violent opponent of the supremacy
+ of the nobility (<i>Geijer</i>, Schwed. Gesch. II, 118 ff., 346); while
+ Christian II., of Denmark, failed in all such endeavors. The founder of
+ the Russian industrial protection was Peter the Great, who was in complete
+ accordance with the native theorist, <i>I. Possoschkow</i>: Compare
+ <i>Brückner</i>, in the Baltische Monatschrift, Bd. VI (1862), and VI
+ (1863). Spain first adopted a real protective system under the Bourbons.
+ The export prohibitions issued mostly at the request of the cortes between
+ 1550 and 1560 (<i>Ranke</i>, Fürsten und Völker, I, 400 ff.) must be
+ considered as a remnant of the medieval scarcity-policy, induced
+ principally by a misunderstood depreciation of the precious metals.</p>
+
+<p class="p2 center">SECTION VII.<span class='pagenum'>[Pg 442]</span></p>
+
+<p class="center smaller">HOW LONG IS PROTECTION JUSTIFIABLE?</p>
+
+<p>All rational education keeps in view as its object, the subsequent
+independence of the pupil. If it desired to continue <span
+class='pagenum'>[Pg 443]</span> its guardianship, the payment of fees,
+etc., until an advanced age, it would thereby demonstrate either the
+pupil's want of <span class='pagenum'>[Pg 444]</span> capacity or the
+absurdity of its methods. The industrial protective system also can be
+justified as an educational measure <span class='pagenum'>[Pg 445]</span>
+only on the assumption that it may be gradually dispensed with; that is,
+that, by its means, there may be a prospect of <span class='pagenum'>[Pg
+446]</span> attaining to freedom of trade.<a name="fnanchor_A3-7-1"
+id="fnanchor_A3-7-1"></a><a href="#footnote_A3-7-1" class=
+"fnanchor">[A3-7-1]</a> In the case of all highly civilized nations, the
+presumption is in favor of freedom of trade, <span class='pagenum'>[Pg
+447]</span> both at home and abroad, and in such nations, the desire for a
+protective system must be looked upon as a symptom of disease.<a
+name="fnanchor_A3-7-2" id="fnanchor_A3-7-2"></a><a href="#footnote_A3-7-2"
+class="fnanchor">[A3-7-2]</a> <a name="fnanchor_A3-7-3" id=
+"fnanchor_A3-7-3"></a><a href= "#footnote_A3-7-3" class=
+"fnanchor">[A3-7-3]</a> It is true, that recently the inferiority of young
+countries, even when inhabited by a very active and highly educated people,
+is greatly enhanced by the improvement of the means of communication. But
+this is richly compensated for by the simultaneous instinct towards
+emigration, both of capital and workmen from over-full, highly industrial
+countries; whereas, the prohibitions by the state, that extreme of <span
+class='pagenum'>[Pg 448]</span> exportation embargoes, formerly so
+frequently resorted to, it is no longer possible to carry out.<a
+name="fnanchor_A3-7-4" id="fnanchor_A3-7-4"></a><a href="#footnote_A3-7-4"
+class="fnanchor">[A3-7-4]</a> <a name="fnanchor_A3-7-5" id=
+"fnanchor_A3-7-5"></a><a href= "#footnote_A3-7-5" class=
+"fnanchor">[A3-7-5]</a> Now the young country has the advantage of being
+able immediately to use the newest processes of labor, etc., without being
+hindered by the existence there of earlier imperfect apparatus. It is
+certain that international freedom of trade must be of advantage to a
+people's nationality the moment they have attained to the maturity of
+manhood, for the reason that they are thereby forced to make the most of
+that which is peculiar to them. Care must be taken not to confound
+many-sidedness with all-sidedness.<a name= "fnanchor_A3-7-6"
+id="fnanchor_A3-7-6"></a><a href="#footnote_A3-7-6" class=
+"fnanchor">[A3-7-6]</a> The best "protection of national labor" might
+consist in this, that all products should be really individually
+characteristic (artistic), all individuals really national, and national
+also in their tastes as consumers. This <span class='pagenum'>[Pg
+449]</span> ideal has been pretty closely approximated to by the French in
+respect to fashionable commodities, so that they will hardly purchase such
+from abroad, even without a protective tariff; and the cultured of most
+nations in respect to works of art. Here, too, it is worth considering,
+that even the most national of poets, when they are great enough to rise to
+the height of the universally human, possess the greatest universality.<a
+name="fnanchor_A3-7-7" id="fnanchor_A3-7-7"></a><a href="#footnote_A3-7-7"
+class="fnanchor">[A3-7-7]</a></p>
+
+ <p class="footnote"> <a name="footnote_A3-7-1" id="footnote_A3-7-1"></a>
+ <a href="#fnanchor_A3-7-1">[A3-7-1]</a>
+ <i>Colbert</i> advised the companies in Lyons to consider the privileges
+ granted them only as crutches, by means of which they might learn to walk
+ the soonest possible, it being the intention afterwards to do away with
+ them. (Journ. des Econom., Mai, 1854, p. 277.) Thiers said, in the chamber
+ of deputies, in 1834: <i>Employé comme représailles,</i><a name=
+ "fnanchor_TN132" id= "fnanchor_TN132"></a><a href= "#footnote_TN132"
+ class= "fnanchor">[TN 132]</a> <i>le tarif est funeste; Comme faveur, il
+ est abusif; Comme encouragement à une industrie exotique, qui n'est pas
+ importable il est impuissant et inutile. Employé pour protéger un produit,
+ qui a chance de réussir, il est bon; mais il est bon temporairement, il
+ doit finer quand l'education de l'industrie est finie, quand elle est
+ adulte.</i> <i>Schmitthenner</i>, Zwölf Bücher vom Staate, I, 657 ff.,
+ admits that full freedom of trade between England and Germany would be
+ advantageous to the world in general; but that England might here secure
+ the entire gain even at the cost of Germany, in part.
+ <i>Schmitthenner's</i> view is distinguished from that of <i>List's</i>,
+ against which <i>Schmitthenner</i> zealously seeks to maintain the
+ priority of his own (II, 365), disadvantageously enough, by this, that it
+ contains no pledge of subsequent freedom of trade. <i>List</i>, on the
+ contrary, considers universal freedom of trade, not only as the ideal, but
+ also as the object which is to be striven for by temporary limitations on
+ trade; an object, indeed, attainable only where there are a great many
+ nations highly developed and in an equal degree, just as perpetual peace
+ supposes a plurality of states equal in power. Ges. Schr., II, 35; III,
+ 194. Compare, on this point, <i>Hildebrand</i>, N. O. der Gegenwart und
+ Zukunft, I, 87. That <i>Carey</i> advocates a perpetual protective tariff
+ is connected with his absolute inability to conceive the Malthusian law of
+ population. (<i>Held</i>, Carey's Socialwissenschaft und das
+ Merkantilsystem,<a name= "fnanchor_TN133" id= "fnanchor_TN133"></a><a
+ href= "#footnote_TN133" class= "fnanchor">[TN 133]</a> 1866, p. 166.)</p>
+
+ <p class="footnote">Thus, for instance, the prohibition of foreign cloths
+ in Florence begins in 1393, that is, at a time when the protected industry
+ had long been developed, so that its products were exported on a great
+ scale, but when it began to fear the young, vigorous, competition of the
+ Flemings.</p>
+
+ <p class="footnote"> <a name="footnote_A3-7-2" id="footnote_A3-7-2"></a>
+ <a href="#fnanchor_A3-7-2">[A3-7-2]</a>
+ How frequently it happened in the conquests of the French revolution or of
+ Napoleon, or when the Zollverein was extended, that two territories, now
+ united to each other, feared an outflanking of their industries, each by
+ the other, whose competition was formerly excluded; and that, afterwards,
+ the abolition of the barriers to trade worked advantageously to both
+ parties! (<i>Dunoyer</i>, Liberté du Travail, VII, ch. 3.) The Belgian
+ manufacture of (coarse) porcelain flourished under Napoleon, spite of the
+ competition of Sèvres. It declined after the separation from France,
+ notwithstanding protective duties of 20 per cent. (<i>Briavoinne</i>,
+ Industrie Belge, II, 483.) The French cotton manufacturers feared, in
+ 1791, that the incorporation of Mülhausen would necessarily produce their
+ downfall.</p>
+
+ <p class="footnote"> <a name="footnote_A3-7-3" id="footnote_A3-7-3"></a>
+ <a href="#fnanchor_A3-7-3">[A3-7-3]</a>
+ In Venice, the relations of a workman who had emigrated and refused to
+ return home were imprisoned. If this was of no avail, the emigrant was to
+ be put to death. (<i>Daru</i>, Hist. de V., III, 90.) It is said that this
+ was still the practice in 1754. (Acad. des Sc. mor. et polit., 1866, I,
+ 132.) Florence, in 1419, threatened its subjects who carried on the
+ brocade or silk industry, in foreign countries, with death. Similarly,
+ when the Nürnberg Rothgiessers were prohibited, under pain of the house of
+ correction, showing their mills to a stranger. (<i>Roth</i>, Gesch. des N.
+ Handles, III, 176.) In Belgium, enticing manufacturers of bone lace to
+ emigrate was made punishable. Austrian prohibition for glass-makers, in
+ 1752; for scythe-makers, in 1781. Colbert also approved of the
+ imprisonment of manufacturers desirous to emigrate. (Lettres, etc., II,
+ 568 ff.) By 5 Geo. I., ch. 28, and 23 Geo. II., ch. 13, the soliciting of
+ an artificer to emigrate to foreign countries is punished by one year's
+ imprisonment and £500 fine; and even workmen who do not respond to a call
+ home within six months lose all their reachable property in England, and
+ their capacity to inherit there. Every emigrant had to certify that he was
+ no artificer. The only effect of this law was that the emigration of
+ artificers to the United States was made by the way of Canada; the poorer
+ ones, at most, were kept back by the cost of this circuitous route. Hence
+ the law was repealed in 1825. Compare Edinb. Rev., XXXIX, p. 341 ff.</p>
+
+ <p class="footnote"> <a name="footnote_A3-7-4" id="footnote_A3-7-4"></a>
+ <a href="#fnanchor_A3-7-4">[A3-7-4]</a>
+ The first English prohibition of the exportation of machinery was made in
+ reference to the Lee stocking frame, in 1696, the second in 1750;
+ whereupon others followed very rapidly after 1774. As late as 1825,
+ prohibitions of the exportation of a large number of machines and of parts
+ of machines were still in force; but the Board of Trade might dispense
+ with them. Here it was considered whether a greater disadvantage was
+ caused to the industries by permitting the exportation, or to the
+ manufacturers of the machines by prohibiting it. <i>Porter</i>, Progress,
+ I, 318 ff., recommends full freedom of exportation especially for the
+ reason that Englishmen can now procure all new machines, and sell the old
+ ones to foreign countries. On the other hand, a French manufacturer
+ purchased old machines <i>parce que sous le système prohibitif je gagnerai
+ encore de l'argent avec ces metiers</i>. (<i>Rau</i>, Lehrbuch, II, §
+ 209.) Similar cases in the United States. <i>Cairnes</i>, Principles, p.
+ 485.</p>
+
+ <p class="footnote"> <a name="footnote_A3-7-5" id="footnote_A3-7-5"></a>
+ <a href="#fnanchor_A3-7-5">[A3-7-5]</a>
+ <i>Bandrillart</i>, Manuel, p. 299. Every nation needs, in order to become
+ fully mature, an industry of some magnitude. But it may just as well be
+ the silk industry as the cotton which shall lead to this maturity; and
+ when the nation has much greater natural capacity for the former than for
+ the latter, it would do well to reach its object by the shortest
+ course.</p>
+
+ <p class="footnote"> <a name="footnote_A3-7-6" id="footnote_A3-7-6"></a>
+ <a href="#fnanchor_A3-7-6">[A3-7-6]</a>
+ <i>Riehl</i>, die deutsche Arbeit, p. 102 ff., 107. Shakespeare, the most
+ English of Englishmen, and yet the most universal of poets! During the
+ last centuries of the middle ages most nations had come to have national
+ and even local costumes which were in strong contrast with the
+ universality of fashions during the age of chivalry. This must have
+ greatly contributed to the advancement of industry, even before the
+ introduction of the state protective system.</p>
+
+ <p class="footnote"> <a name="footnote_A3-7-7" id="footnote_A3-7-7"></a>
+ <a href="#fnanchor_A3-7-7">[A3-7-7]</a>
+ How much more convenient it is for the statesman, when he does not need to
+ give any thought to the education of industry, is shown, especially by the
+ great difficulty of striking precisely the proper height of a protective
+ tariff. If too low, it fails of its object; and so, likewise, if too high;
+ because then, in a very unpedagogical way, it lulls one into a lazy
+ security. And how impossible it is to make the tariff vary with every
+ variation in the cost of production, in price, etc.; as List desired it
+ should, not, however, without a good deal of variation in his own views.
+ (<i>Roscher</i>, Gesch. der N. O., II, 989 seq.) How greatly would not
+ List have been obliged to limit his assumptions, if he had lived to see
+ the universal exposition of 1862, at which English connoisseurs expressed
+ their pleasure that England had not remained behind France and Germany in
+ locomotive building? (Ausland, 19 Oct., 1862.) Hence <i>Schäffle</i>
+ opposes all protective duties as an educational measure, because the
+ "protected" classes, by means of diets (<i>Landtage</i>), newspapers, etc.
+ so greatly influence legislation; that is, the educator is influenced by
+ the pupil! (System, 409 ff.) The usual calculation of the cost for home
+ undertakers (<i>Unternehmer</i>) can always only strike the average, and
+ hence it is too high for some and too low for others. (<i>Rau</i>,
+ Lehrbuch, II, § 214.) It frequently occurs that large manufacturers
+ already existing desire a low protective tariff to facilitate their
+ competition with foreign countries, possible even without such tariff, but
+ not high enough to encourage others to compete with them at home.</p>
+
+<p class="p2 center">SECTION VIII.</p>
+
+<p class="center smaller">INDUSTRIAL-PROTECTIVE POLICY IN PARTICULAR.</p>
+
+<p>If it be once established generally that an industry is to be
+artificially promoted, and if there be question only of a choice between
+the different measures to be adopted to thus promote it, moderate<a
+name="fnanchor_A3-8-1" id="fnanchor_A3-8-1"></a><a href="#footnote_A3-8-1"
+class="fnanchor">[A3-8-1]</a> import duties are not only the most equable,
+least <span class='pagenum'>[Pg 450]</span> subject to abuse, but also
+attended by the greatest number of secondary advantages. Here the sacrifice
+is imposed on all the consumers of the "protected" commodity, that is, on
+the entire people, to the extent that they come in contact with the
+commodity in question. Export duties on raw materials, on the other hand,
+compel one single class of the people to make sacrifices in order to
+advance the favored industry.<a name="fnanchor_A3-8-2" id=
+"fnanchor_A3-8-2"></a><a href="#footnote_A3-8-2" class=
+"fnanchor">[A3-8-2]</a> Export premiums for commodities on which labor has
+been expended are distinguished from import duties as the offensive from
+the defensive: the former promote the artificial trade, the trade which has
+gone beyond its natural basis, the latter curtail it.</p>
+
+<p>Premiums, advances without interest, gifts of machinery etc., to persons
+engaged in industry would operate very usefully under an omniscient
+government.<a name= "fnanchor_A3-8-3" id= "fnanchor_A3-8-3"></a><a
+href="#footnote_A3-8-3" class="fnanchor">[A3-8-3]</a> But they generally
+fall to the lot not of the most skillful manufacturers, but of the most
+acceptable supplicants, who now are doubly dangerous to the former as
+competitors.<a name= "fnanchor_A3-8-4" id= "fnanchor_A3-8-4"></a><a
+href="#footnote_A3-8-4" class="fnanchor">[A3-8-4]</a> The same is true to a
+still greater extent of monopolies granted to undertakings which <span
+class='pagenum'>[Pg 451]</span> it is intended to promote.<a name=
+"fnanchor_A3-8-5" id= "fnanchor_A3-8-5"></a><a href= "#footnote_A3-8-5"
+class= "fnanchor">[A3-8-5]</a> They require, at least, to be vigilantly
+superintended in case of sale from one person to another; otherwise the
+individual to whom they were first granted is very apt to withdraw with the
+capitalized value of the privilege accorded, and his successors, loaded
+with a heavy debt in the nature of a mortgage, to derive no advantage from
+it.<a name= "fnanchor_A3-8-6" id= "fnanchor_A3-8-6"></a><a href=
+"#footnote_A3-8-6" class= "fnanchor">[A3-8-6]</a></p>
+
+<p>Further, import duties, besides the fiscal advantage which they afford,
+have the police advantage that they may, like quarantine provisions,
+prevent somewhat the inroads of many economic diseases: thus, for instance,
+gluts of the market, and still more, the severe chronic disease of
+ruinously low wages.<a name="fnanchor_A3-8-7" id="fnanchor_A3-8-7"></a><a
+href="#footnote_A3-8-7" class="fnanchor">[A3-8-7]</a> But only very
+moderate hopes from protective duties should be entertained in all such
+respects as these.<a name="fnanchor_A3-8-8" id="fnanchor_A3-8-8"></a><a
+href="#footnote_A3-8-8" class="fnanchor">[A3-8-8]</a></p>
+
+<p><span class='pagenum'>[Pg 452]</span>Prohibition proper operates, as a
+rule, very disastrously.<a name= "fnanchor_A3-8-9" id=
+"fnanchor_A3-8-9"></a><a href= "#footnote_A3-8-9" class=
+"fnanchor">[A3-8-9]</a> It spoils those engaged in industry by a feeling of
+too great security (mortals' chiefest enemy: Shakespeare). It may even lead
+to complete monopoly, when the industry requires very large means and the
+country is small. The inducement to smuggling is peculiarly great here. But
+even duties, so high that they far exceed the insurance premium of
+smuggling, can be of very little advantage either to industry or to the
+exchequer. They can only promote the smuggling trade. However, the repeal
+of an import prohibition or the abolition of a tariff approaching to a
+prohibition should be announced long enough in advance to enable the
+capital invested in the protected industry to be withdrawn without too
+heavy a loss.</p>
+
+ <p class="footnote"> <a name="footnote_A3-8-1" id="footnote_A3-8-1"></a>
+ <a href="#fnanchor_A3-8-1">[A3-8-1]</a>
+ In general, <i>Mäser</i> was in favor of <i>Colbert</i>, and opposed to
+ <i>Mirabeau</i>. (P. Ph. II, 26.) He ridicules the prohibitions of the
+ exportation of raw material by saying that not only flax-seed, flax-yarn,
+ but also the linen, must remain in the country. As Raphael Mengs once
+ ennobled four ells of linen to a value of 10,000 ducats, a hundred Mengs
+ should be sent for, to the end that all the linen should be exported
+ painted. (v. 25.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-8-2" id="footnote_A3-8-2"></a>
+ <a href="#fnanchor_A3-8-2">[A3-8-2]</a>
+ <i>Rau</i>, Lehrbuch, II, § 214, would prefer to tolerate state premiums
+ (politically so dangerous), rather than protective duties, because, in the
+ case of the former, the magnitude of the assumed sacrifice may be exactly
+ estimated in advance. Similarly, <i>Bastiat</i>, Sophismes, ch. 5.</p>
+
+ <p class="footnote"> <a name="footnote_A3-8-3" id="footnote_A3-8-3"></a>
+ <a href="#fnanchor_A3-8-3">[A3-8-3]</a>
+ Many striking examples in <i>List's</i> Zollvereinsblatt, 1843, No. 47.</p>
+
+ <p class="footnote"> <a name="footnote_A3-8-4" id="footnote_A3-8-4"></a>
+ <a href="#fnanchor_A3-8-4">[A3-8-4]</a>
+ Under <i>Colbert</i>, the granting of a monopoly had frequently no effect
+ but to ruin an already existing rural industry in the interest of a city
+ manufactory. Thus, in the case of lace, in Bourges and Alençon, and soap
+ in the south, etc. The upshot of the matter in some places was simply that
+ the carriers on of industry on a small scale were allowed to carry on
+ their industries in consideration of a payment made to the owners of the
+ privilege. (Journ. des Econ., 1857, II, 290.) The King of Denmark bought
+ back, in 1756, at a high price, industrial privileges which his
+ predecessors had granted gratis. (<i>Justi</i>, Polizeiwissensch., § 444.)
+ The Colbert monopoly of the Hollander v. Robais (1665), who was the first
+ to manufacture fine cloths in France, was not abolished until 1767.
+ (Encycl. Mech. Arts et Manuf., II, 345.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-8-5" id="footnote_A3-8-5"></a>
+ <a href="#fnanchor_A3-8-5">[A3-8-5]</a>
+ Thus, for instance, in 1863, the apothecary shops of the governmental
+ district of Breslau had a value of 2,791,227 thalers, of which the land
+ and inventories of stock were only 29 per cent. The concessions
+ represented 71 per cent. The sick, in the entire state of Prussia, were
+ obliged to contribute 1,780,000 thalers a year to compensate these
+ monopolists. Compare <i>Brefeld</i>, Die Apotheken, Schutz oder Freiheit?
+ (1863).</p>
+
+ <p class="footnote"> <a name="footnote_A3-8-6" id="footnote_A3-8-6"></a>
+ <a href="#fnanchor_A3-8-6">[A3-8-6]</a>
+ <i>Hermann</i>, in his review of Dönniges' System des freien Handels und
+ der Schützzölle (Münch. G. A. Sept. und Octbr., 1847) calls attention to
+ the point that a decrease of the cost of production, by merely lowering
+ wages, is no gain to the national resources, but only an altered
+ distribution of them, for the most part a very unfavorable one. But when a
+ nation is advancing on this road, it may strengthen its exportation by
+ such means, as it might granting export premiums at the expense of the
+ workmen. This would lead, on the supposition of entire freedom of trade,
+ to a corresponding depression of the lower classes in other countries; and
+ against such contagion a protective tariff may operate in a manner similar
+ to the quarantine. This is much exaggerated by <i>Colton</i>, Public
+ Economy of the United States (1849), p. 65, 178. America needs a
+ protective tariff more than any other nation, because of its dear workmen
+ and capital. In Europe, the upper classes rob labor of its product, while
+ in America, labor itself enjoys its products. Free trade would lower
+ America to the level of Europe.</p>
+
+ <p class="footnote"> <a name="footnote_A3-8-7" id="footnote_A3-8-7"></a>
+ <a href="#fnanchor_A3-8-7">[A3-8-7]</a>
+ Severe crisis in the woolen industries of America in 1874 ff., spite of an
+ enormously high protective tariff. The financial utility of a protective
+ tariff can be scarcely great, because the intention of the tariff to
+ permit as little as possible to be imported, and of the tax to levy as
+ much as possible, are irreconcilable.</p>
+
+ <p class="footnote"> <a name="footnote_A3-8-8" id="footnote_A3-8-8"></a>
+ <a href="#fnanchor_A3-8-8">[A3-8-8]</a>
+ Frederick II., in 1766, forbade the importation of 490 different
+ commodities which, up to that time, had only paid high duties.
+ (<i>Mirabeau</i>, Monarchie, Pr., II, 168.) In 1835, France still had 58
+ import and 25 export prohibitions.</p>
+
+ <p class="footnote">They might, by way of exception, become necessary, in
+ case a foreign state should desire to make our protective duties illusory
+ by export premiums. But the exportation of Prussian cotton stuffs, for
+ instance, has increased, with a moderate tariff, much more than the
+ Austrian, with full prohibition. The English silk manufactures were, so
+ long as the prohibition continued, inferior to the French, even in respect
+ to the machinery system. (<i>McCulloch</i>, Statist., I, 681.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-8-9" id="footnote_A3-8-9"></a>
+ <a href="#fnanchor_A3-8-9">[A3-8-9]</a>
+ In the case of circulating capital this is generally done rapidly. The
+ machines would have worn out, and care is taken not to renew them.
+ Buildings also can, for the most part, serve other purposes. The most
+ difficult thing of all is for the masses of men, gathered together at the
+ principal seats of industry, artificially created, to distribute
+ themselves. Between the two rules: "No leap, but gradual transition," and
+ "cut the dog's tail off at once, not piecemeal," the right mean is struck
+ in the abolition of a prohibitive protection, when, what it is intended to
+ do, is announced long in advance without maintaining vain hopes, and a
+ long space of time is left to enable people to make their arrangements
+ accordingly. This plan was followed in a model manner in reference to the
+ English silk prohibition, under Huskisson. It was announced as early as
+ 1824 that protective duties of 30 per cent. would on the 5th of July,
+ 1826, take the place of the prohibition. The duty on raw silk was
+ immediately reduced from 4 sh. to 3d. per pound, and after a time, even to
+ 1d., which so increased the demand that the number of spindles rapidly
+ increased from 780,000 to 1,180,000. During the 10 years from 1824, the
+ importation of raw and twisted silk amounted to about 1,941,000 pounds,
+ and in the 10 years after, to 4,164,000 pounds. The English exports of
+ silk wares had before 1824 a value of £350,000 to £380,000; in 1830, of
+ over £521,000; in 1854, of almost £1,700,000; in 1863, of £3,147,000.
+ Compare <i>Porter</i>, Progress, I, 255 ff. On the other hand, Austria was
+ over-hasty when it went over from the prohibition of foreign silk stuffs
+ to duties of 180 florins per cwt. (Oest. Weltausstellungsbericht von 1867,
+ IV, 140.)</p>
+
+<p class="p2 center">SECTION IX.<span class='pagenum'>[Pg 453]</span></p>
+
+<p class="center smaller">WHAT INDUSTRIES ONLY SHOULD BE FAVORED.</p>
+
+<p>That as a rule only such industries should be favored which, by reason
+of the natural capacities of the country and of the people, have a good
+prospect of being able soon to dispense with the favors accorded, would be
+self-evident were it not for the fact that it has been ignored a thousand
+times in practice.<a name="fnanchor_A3-9-1" id="fnanchor_A3-9-1"></a><a
+href="#footnote_A3-9-1" class="fnanchor">[A3-9-1]</a> It is especially
+necessary to take the natural station (<i>Standort</i>)<a name=
+"fnanchor_A3-9-2" id="fnanchor_A3-9-2"></a><a href="#footnote_A3-9-2"
+class= "fnanchor">[A3-9-2]</a> as well as the natural succession of the
+different branches of industry into consideration. Half manufactured
+articles of <span class='pagenum'>[Pg 454]</span> foreign raw material
+should not be protected until the entire manufactured article has
+completely outgrown protection; which condition manifests itself most
+clearly by a strong, independent exportation of the article.<a name=
+"fnanchor_A3-9-3" id="fnanchor_A3-9-3"></a><a href="#footnote_A3-9-3"
+class= "fnanchor">[A3-9-3]</a> The celebrated tariff controversy between
+the cotton spinners and the weavers in the Zollverein was probably without
+any conscious plan, but certainly to the well-being of German industry,
+settled essentially in accordance with these principles. In such struggles
+of the different stages of a branch of production with one another, it is
+necessary not only mechanically to weigh the number of workmen, the amount
+of capital, etc., on both sides, but also organically the capacity for
+development and the influence of both sides on the entire national life.<a
+name= "fnanchor_A3-9-4" id="fnanchor_A3-9-4"></a><a href="#footnote_A3-9-4"
+class= "fnanchor">[A3-9-4]</a> Half-manufactured <span class='pagenum'>[Pg
+455]</span> articles of a very superior quality should not be kept away,
+since by promoting commodities of the first quality they have an
+educational influence on the whole industry. Thus, in the case of the
+duties on iron, it should not be forgotten, that they enhance the price of
+all instruments of industry.<a name= "fnanchor_A3-9-5" id=
+"fnanchor_A3-9-5"></a><a href="#footnote_A3-9-5" class=
+"fnanchor">[A3-9-5]</a> Just as objectionable are protective duties for
+machines or for intellectual elements of training.<a name=
+"fnanchor_A3-9-6" id= "fnanchor_A3-9-6"></a><a href= "#footnote_A3-9-6"
+class= "fnanchor">[A3-9-6]</a></p>
+
+ <p class="footnote"> <a name="footnote_A3-9-1" id="footnote_A3-9-1"></a>
+ <a href="#fnanchor_A3-9-1">[A3-9-1]</a>
+ <i>Torrens</i> calls an industry which can, in the long run, bear no
+ competition: "A parasitical formation, wanting the vital energies while
+ permitted to remain, and yet requiring for its removal a painful
+ operation." (Budget, p. 49.) Especially frequent in the case of
+ luxury&mdash;industries in which the court was interested. The oysters
+ which were sent for to Venice under Leopold I., in order to stock the
+ artificial beds in the garden of the president of the Exchequer reached
+ Vienna, dead. (<i>Mailath</i>, Gesch., IV, 384.) As to how Elizabeth, and
+ Catharine II. in Russia, desired to compel the cultivation of silk, and
+ caused the peasantry to be levied like recruits for that purpose; as to
+ how the latter petitioned against it in a thousand ways, and endeavored to
+ destroy the silk worms, mulberry trees, etc., see <i>Pallas</i>, Reise
+ durch das südliche Russland, I, 154 ff. Frederick II.'s silk-protection is
+ characterized mainly by the order for church-inspectors to keep tables
+ (<i>Tabellen</i>) concerning it, and to look after clergymen's and
+ teachers' knowledge of the cultivation of silk. Tragico-comic endeavors of
+ the Shah Nasreddin to establish manufactories in Persia: <i>Pollak</i>,
+ Persien, II, 138 ff. One of the principal effects of the Mexican
+ protective system, since 1827, was the establishing of manufactories on
+ the coast only to cover up smuggling. (<i>Wappäus</i>, Mexiko, 83 ff.)</p>
+
+ <p class="footnote"> <a name="footnote_A3-9-2" id="footnote_A3-9-2"></a>
+ <a href="#fnanchor_A3-9-2">[A3-9-2]</a>
+ When Holland stunted its bleach-yards by high duties on linen, an industry
+ in which it must always remain behind many other nations, was favored at
+ the expense of another for which it possesses incomparable advantages.</p>
+
+ <p class="footnote"> <a name="footnote_A3-9-3" id="footnote_A3-9-3"></a>
+ <a href="#fnanchor_A3-9-3">[A3-9-3]</a>
+ Even before <i>Colbert's</i> time, French jewelry was prepared from
+ Italian gold wire, and exported in great quantities. The mere rumor that
+ it was contemplated to impose heavy duties on gold wire, provoked plans
+ for the removal of the industry from Geneva to Avignon.
+ (<i>Farbonnais</i>, F. de Fr., I, 275.) When France protects its raw silk,
+ it makes the purchase of raw material in Italy cheaper to all its
+ competitors.</p>
+
+ <p class="footnote"> <a name="footnote_A3-9-4" id="footnote_A3-9-4"></a>
+ <a href="#fnanchor_A3-9-4">[A3-9-4]</a>
+ According to <i>L. Kühne</i> (Preuss. Staatszeitung, 17 Decbr., 1842), the
+ cotton yarn consumption of Germany amounted to 561,000 cwt. per annum, of
+ which the home spin-houses yielded 194,000 cwt. Weaving employed 311,500
+ workmen with 32,250,000 thalers wages, spinning only 16,300 workmen with a
+ little over 1,000,000 thalers wages. Even if the entire yarn-want
+ (<i>Garnbedarf</i>) were spun in the interior, yet spinning would stand to
+ weaving only as 1:5 in the number of workmen, and as 1:8 in the amount of
+ wages. Hence the tariff of the Zollverein defended by Prussia, placed the
+ tariff on tissues (<i>Gewebe</i>) 25 times as high as on yarn, while their
+ prices stood to each other as 1:3-4. <i>List</i> (Zollvereinsblatt, 1844,
+ No. 40 ff.) objected that only by spinning industries of its own could
+ Germany's cotton-tissue industries become independent; since it was a very
+ different thing to procure the material to be worked from the many
+ mutually competing cotton countries, rather than from an intermediate
+ hand; and indeed, from the most powerful industrial country of the world.
+ (Compare, however, <i>Faucher's</i> Vierteljahrsschrift, 1863, Bd. I.)
+ Besides, there is the great importance of the spinning industries, in
+ order to come into immediate connection with America, the most rapidly
+ growing market, to influence Holland, and also to advance navigation and
+ the manufacture of machinery. In opposition to <i>Kühne's</i> calculation,
+ <i>List</i> says: A man who lost eyes, ears, fingers and toes, would
+ undergo only a small loss of weight.</p>
+
+ <p class="footnote"> <a name="footnote_A3-9-5" id="footnote_A3-9-5"></a>
+ <a href="#fnanchor_A3-9-5">[A3-9-5]</a>
+ Special calculations on this matter in <i>Junghanns</i>, Fortschritt des
+ Zollvereins (1849), I, 179.</p>
+
+ <p class="footnote"> <a name="footnote_A3-9-6" id="footnote_A3-9-6"></a>
+ <a href="#fnanchor_A3-9-6">[A3-9-6]</a>
+ Frederick II. threatened the prosecution of one's studies at a foreign
+ university with a lifelong exclusion from all civil and ecclesiastical
+ offices; and, in the case of the nobility, even with the confiscation of
+ their property. (<i>Mylius</i>, C. C. M. <i>Contin</i>, IV, 191, Noviem C.
+ C., I, 97.)]</p>
+
+<p><span class='pagenum'>[Pg 456]</span><br />
+<span class='pagenum'>[Pg 457]</span></p>
+
+<h3 class="p4">INDEX TO NAMES OF AUTHORS</h3>
+
+<p class="center">CITED IN THE PRINCIPLES.</p>
+
+<p class="center">[The references are to the sections.]</p>
+
+<p class="p2 indent2">A.</p><ul class="IX none">
+
+<li>Académie française, 42.</li>
+
+<li>Agricola, 116, 120.</li>
+
+<li>Ahrens, 16, 77.</li>
+
+<li>Algarotti, 49.</li>
+
+<li>Anacharsis, 116.</li>
+
+<li>Anaxagoras, 38.</li>
+
+<li>Anderson, A. (Origin of Commerce), <a href="#S188">188</a>.</li>
+
+<li>Anderson, J. (Nature of Corn Laws), <a href="#S152">152</a>, <a
+href="#S154">154</a>.</li>
+
+<li>Anonymous, authors of:
+
+<ul class="IX none">
+
+<li>&mdash;&mdash; Britannia languens, 123, <a href="#S196">196</a>.</li>
+
+<li>&mdash;&mdash; Discourse of Trade, Coyn and Paper-Credit, 48, 50, 90,
+108, 123.</li>
+
+<li>&mdash;&mdash; England's great Happiness, <a href="#S196">196</a>.</li>
+
+<li>&mdash;&mdash; Interest of Money mistaken, <a
+href="#S188">188</a>.</li>
+
+<li>&mdash;&mdash; Paying old Debts without new Taxes, 49.</li>
+
+<li>&mdash;&mdash; Virginia's Verger, 9.</li>
+
+<li>&mdash;&mdash; (W. S.) Compendious or brief Examination of certain
+ordinary Complaints, 137.</li>
+
+</ul></li>
+
+<li>Antisthenes, <a href="#S225">225</a>.</li>
+
+<li>Antoninus, <a href="#S191">191</a>.</li>
+
+<li>Arbuthnot, 135.</li>
+
+<li>Aretin, v., <a href="#TN">II</a>, 118.</li>
+
+<li>Aristippos, <a href="#S225">225</a>.</li>
+
+<li>Aristophanes, 79, <a href="#S202">202</a>.</li>
+
+<li>Aristotle, 1, 2, 5, 9, 14, 36, 38, 43, 49, 57, 63, 69, 70, 75, 79, 81,
+100, 107, 116, 117, <a href="#S190">190</a>, <a href="#S205">205</a>, <a
+href="#S250">250</a>, <a href="#S251">251</a>, <a
+href="#S253">253</a>.</li>
+
+<li>Arnd, 20.</li>
+
+<li>Arnold, <a href="#S184">184</a>.</li>
+
+<li>Asgill, 49.</li>
+
+<li>Augustinis, de, 51.</li>
+
+<li>Auxiron, <a href="#S154">154</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">B.</p>
+
+<ul class="IX none">
+
+<li>Babbage, 57, 58, 106.</li>
+
+<li>Babœuf, 79, 81.</li>
+
+<li>Bacon, 13, 21, 24, 50, 55, 98, 108, 114, <a href="#S191">191</a>, <a
+href="#S204">204</a>, <a href="#S254">254</a>.</li>
+
+<li>Bandini, 123, <a href="#S188">188</a>.</li>
+
+<li>Banfield, 115, <a href="#S157">157</a>, <a href="#S205">205</a>, <a
+href="#S263">263</a>.</li>
+
+<li>Bastiat, 2, 5, 9, 31, 35, 42, 54, 58, 81, 82, 84, 87, 97, 116, 117, <a
+href="#S152">152</a>, <a href="#S167">167</a>, <a href="#S185">185</a>, <a
+href="#S210">210</a>, <a href="#S238">238</a>, <a href="#S242">242</a>, <a
+href="#S243">243</a>.</li>
+
+<li>Baudrillart, 21, <a href="#S242">242</a>.</li>
+
+<li>Baumstark, 20, <a href="#S154">154</a>.</li>
+
+<li>Bazard, 11, 53, 67, 84, 86, 90, 97, <a href="#S205">205</a>, <a
+href="#S207">207</a>.</li>
+
+<li>Beaumont, de, <a href="#S250">250</a>.</li>
+
+<li>Beccaria, 19, 49, 57, 79, 125, 126, 140, <a href="#S256">256</a>, <a
+href="#S263">263</a>.</li>
+
+<li>Becher, J. J., 98, 114, <a href="#S214">214</a>, <a
+href="#S254">254</a>.</li>
+
+<li>Beckmann, J., <a href="#S225">225</a>.</li>
+
+<li>Bentham, J., 12, 71, <a href="#S193">193</a>, <a href="#S232">232</a>,
+<a href="#S250">250</a>, <a href="#S256">256</a>.</li>
+
+<li>Berg, v., 76.</li>
+
+<li>Berkeley, 9, 47, 57, 95, 116, 123, <a href="#S212">212</a>, <a
+href="#S214">214</a>, <a href="#S231">231</a>, <a href="#S254">254</a>, <a
+href="#S255">255</a>.</li>
+
+<li>Bernhardi, v., <a href="#S147">147</a>, <a href="#S154">154</a>.</li>
+
+<li>Bernhardinus, <a href="#S191">191</a>.</li>
+
+<li>Bernoulli, 3, <a href="#S246">246</a>, <a href="#S248">248</a>.</li>
+
+<li>Besold, 137, <a href="#S191">191</a>.</li>
+
+<li>Bible, 11, 16, 36, 41, 63, 69, 81, 84, <a href="#S190">190</a>, <a
+href="#S202">202</a>, <a href="#S204">204</a>, <a href="#S218">218</a>, <a
+href="#S225">225</a>, <a href="#S239">239</a>, <a href="#S245">245</a>, <a
+href="#S255">255</a>, <a href="#S264">264</a>.<span class='pagenum'>[Pg
+458]</span></li>
+
+<li>Biel, 22, 116, 120.</li>
+
+<li>Blackstone, 42, 86 87, <a href="#S199">199</a>.</li>
+
+<li>Blanc, L., 81, 82, 98, <a href="#S167">167</a>, <a
+href="#S178">178</a>.</li>
+
+<li>Blanqui, <a href="#S169">169</a>.</li>
+
+<li>Böckh, 135, 137.</li>
+
+<li>Boden, <a href="#S183">183</a>.</li>
+
+<li>Bodin, J., 37, 137, <a href="#S254">254</a>.</li>
+
+<li>Bodz-Reymond, 97.</li>
+
+<li>Boisguillebert, 1, 9, 12, 49, 96, 97, 100, 111, 117, 123, <a
+href="#S154">154</a>, <a href="#S214">214</a>, <a
+href="#S215">215</a>.</li>
+
+<li>Booth, <a href="#S243">243</a>.</li>
+
+<li>Bornitz, 3, 114.</li>
+
+<li>Bossuet, 77, <a href="#S191">191</a>.</li>
+
+<li>Botero, G., 9, <a href="#S210">210</a>, <a href="#S241">241</a>, <a
+href="#S242">242</a>, <a href="#S245">245</a>.</li>
+
+<li>Boussingault, 32, 34.</li>
+
+<li>Boxhorn, 39, 94.</li>
+
+<li>Brentano, <a href="#S166">166</a>, <a href="#S175">175</a>, <a
+href="#S176">176</a>, <a href="#S177">177</a>.</li>
+
+<li>Bridge, <a href="#S238">238</a>.</li>
+
+<li>Brissot, 77.</li>
+
+<li>Broggia, 9, 116.</li>
+
+<li>Buat, 16.</li>
+
+<li>Buchanan, <a href="#S152">152</a>, <a href="#S153">153</a>, <a
+href="#S154">154</a>, <a href="#S164">164</a>.</li>
+
+<li>Buckle, <a href="#S209">209</a>, <a href="#S263">263</a>.</li>
+
+<li>Bülau, 17, 97.</li>
+
+<li>Buonarotti, 79.</li>
+
+<li>Buquoy, Count, 22, 34, 129, <a href="#S147">147</a>.</li>
+
+<li>Burke, 11, <a href="#S220">220</a>; <a href="#TN">II</a>, 5, 106, 140,
+155.</li>
+
+<li>Büsch, 2, 9, 42, 95, 96, 117, 123, 126, <a href="#S170">170</a>, <a
+href="#S183">183</a>, <a href="#S263">263</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">C.</p>
+
+<ul class="IX none">
+
+<li>Cabanis, 37.</li>
+
+<li>Cabet, 79, 82, <a href="#S250">250</a>.</li>
+
+<li>Cæsar, Jul., 16.</li>
+
+<li>Calvin, 49, 79, 114, <a href="#S191">191</a>.</li>
+
+<li>Campanella, 79.</li>
+
+<li>Canard, 22, 42, 47, 95, 101, 106, 123, <a href="#S152">152</a>, <a
+href="#S188">188</a>, <a href="#S195">195</a>, <a
+href="#S215">215</a>.</li>
+
+<li>Cancrin, Count, 64, 98.</li>
+
+<li>Cantillon, 47, 49, 90, 98, 106, 123, 126, 128, 137, <a
+href="#S144">144</a>, <a href="#S154">154</a>, <a href="#S161">161</a>, <a
+href="#S167">167</a>, <a href="#S185">185</a>, <a
+href="#S193">193</a>.</li>
+
+<li>Carey, 5, 42, <a href="#S148">148</a>, <a href="#S154">154</a>, <a
+href="#S155">155</a>, <a href="#S157">157</a>, <a href="#S166">166</a>, <a
+href="#S172">172</a>, <a href="#S199">199</a>, <a href="#S214">214</a>, <a
+href="#S243">243</a>, <a href="#S253">253</a>, <a
+href="#S263">263</a>.</li>
+
+<li>Carli, 137.</li>
+
+<li>Casper, <a href="#S246">246</a>.</li>
+
+<li>Cato, Cens., 43, <a href="#S190">190</a>, <a href="#S222">222</a>.</li>
+
+<li>Cazaux, 22, 127, <a href="#S145">145</a>.</li>
+
+<li>Celtes, 41.</li>
+
+<li>Cervantes, 55.</li>
+
+<li>Chadwick, <a href="#S218">218</a>, <a href="#S248">248</a>.</li>
+
+<li>Chalmers, Th., <a href="#S216">216</a>, <a href="#S217">217</a>, <a
+href="#S242">242</a>.</li>
+
+<li>Cherbuliez, <a href="#S202">202</a>.</li>
+
+<li>Chevalier, M., 11, 40, 66, 70, 89, 97, 116, 120, 121, 124, 128, 129,
+136, 137, 139, 142, 143, <a href="#S173">173</a>, <a href="#S199">199</a>,
+<a href="#S216">216</a>, <a href="#S217">217</a>, <a
+href="#S220">220</a>.</li>
+
+<li>Child, Sir J., 42, 97, 98, 114, 123, <a href="#S154">154</a>, <a
+href="#S157">157</a>, <a href="#S188">188</a>, <a href="#S192">192</a>, <a
+href="#S193">193</a>, <a href="#S197">197</a>, <a href="#S199">199</a>, <a
+href="#S241">241</a>, <a href="#S242">242</a>, <a
+href="#S254">254</a>.</li>
+
+<li>Chrysippos, <a href="#S250">250</a>.</li>
+
+<li>Cibrario, 17, 137.</li>
+
+<li>Cicero, 9, 46, 49, 75, 100.</li>
+
+<li>Cieszkowsky, 89.</li>
+
+<li>Clemens, Rom., 81.</li>
+
+<li>Cleonard, 54.</li>
+
+<li>Cliquot de Blervache, 108.</li>
+
+<li>Cobden, R., 98.</li>
+
+<li>Coke, R., <a href="#S196">196</a>.</li>
+
+<li>Colbert, <a href="#S232">232</a>, <a href="#S255">255</a>.</li>
+
+<li>Colton, 12, 25, 42, 116, <a href="#S201">201</a>.</li>
+
+<li>Columella, 40, 59, 71.</li>
+
+<li>Comte, Ch., 37, 71.</li>
+
+<li>Condillac, 21, 49, 107, 129.</li>
+
+<li>Condorcet, <a href="#S263">263</a>.</li>
+
+<li>Considérant, 51, 88, <a href="#S183">183</a>.</li>
+
+<li>Constant, B., <a href="#S168">168</a>.</li>
+
+<li>Contzen, Ad., 49, <a href="#S226">226</a>.</li>
+
+<li>Cooper, Th., 12.</li>
+
+<li>Corpus Juris civilis, 69, 83, 117, <a href="#S201">201</a>.</li>
+
+<li>Corpus Juris canonici, 41.</li>
+
+<li>Corvaja, 82.</li>
+
+<li>Cournot, 22.</li>
+
+<li>Court, P. de la, 94, 97, 98, 108, 114, <a href="#S185">185</a>, <a
+href="#S254">254</a>.</li>
+
+<li>Culpeper, Sir Th., <a href="#S154">154</a>, <a href="#S188">188</a>, <a
+href="#S192">192</a>, <a href="#S199">199</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">D.<span class='pagenum'>[Pg 459]</span></p>
+
+<ul class="IX none">
+
+<li>Dankwardt, 16, 56.</li>
+
+<li>Dante, <a href="#S191">191</a>, <a href="#S250">250</a>.</li>
+
+<li>Darjes, 19, 76, 96, 106, <a href="#S192">192</a>, <a
+href="#S254">254</a>.</li>
+
+<li>Darwin, <a href="#S242">242</a>.</li>
+
+<li>Davanzati, 116, 123.</li>
+
+<li>Davenant, 9, 10, 21, 97, 103, 116, 124, <a href="#S157">157</a>, <a
+href="#S242">242</a>, <a href="#S254">254</a>.</li>
+
+<li>Decker, Sir M., 10, 41.</li>
+
+<li>Defoe, D., <a href="#S222">222</a>.</li>
+
+<li>Demosthenes, 21, 42, 43, 89, <a href="#S231">231</a>.</li>
+
+<li>Diderot, 57.</li>
+
+<li>Dietzel, C., 42, 90.</li>
+
+<li>Diogenes, <a href="#S225">225</a>.</li>
+
+<li>Dithmar, 19.</li>
+
+<li>Dohm, 49, <a href="#S263">263</a>.</li>
+
+<li>Doubleday, <a href="#S242">242</a>.</li>
+
+<li>Drobisch, 13, 129.</li>
+
+<li>Droz, 46, 92, <a href="#S214">214</a>.</li>
+
+<li>Dufau, 18.</li>
+
+<li>Dumont, <a href="#S225">225</a>.</li>
+
+<li>Dunoyer, 16, 17, 21, 26, 38, 42, 50, 54, 111, <a href="#S145">145</a>,
+<a href="#S178">178</a>, <a href="#S203">203</a>, <a href="#S216">216</a>,
+<a href="#S242">242</a>.</li>
+
+<li>Dupont de Nemours, 5, 97, 108, <a href="#S147">147</a>.</li>
+
+<li>Duport, St. Clair, 139.</li>
+
+<li>Dutot, 96, 100, 116, <a href="#S212">212</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">E.</p>
+
+<ul class="IX none">
+
+<li>Eden, Sir F. M., 57, 140, <a href="#S213">213</a>.</li>
+
+<li>Edinburgh Review, 116, <a href="#S154">154</a>, <a
+href="#S176">176</a>, <a href="#S242">242</a>.</li>
+
+<li>Eiselen, 51, 95, <a href="#S195">195</a>.</li>
+
+<li>Enfantin, <a href="#S250">250</a>.</li>
+
+<li>Engel, <a href="#S161">161</a>, <a href="#S162">162</a>, <a
+href="#S214">214</a>, <a href="#S240">240</a>, <a href="#S243">243</a>, <a
+href="#S246">246</a>, <a href="#S248">248</a>.</li>
+
+<li>Epicharmos, 47.</li>
+
+<li>Erasmus, 41, 79, <a href="#S191">191</a>.</li>
+
+<li>Euler, <a href="#S238">238</a>.</li>
+
+<li>Euripides, 37, <a href="#S226">226</a>.</li>
+
+<li>Everett, <a href="#S243">243</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">F.</p>
+
+<ul class="IX none">
+
+<li>Fallati, 18, 21.</li>
+
+<li>Faucher, J., 1.</li>
+
+<li>Faucher, L., <a href="#S178">178</a>, <a href="#S215">215</a>.</li>
+
+<li>Faust, M., 137.</li>
+
+<li>Faxardo, Saavedra, 9, <a href="#S254">254</a>.</li>
+
+<li>Fénélon, <a href="#S225">225</a>.</li>
+
+<li>Ferguson, 11, 16, 21, 44, 50, 63, 115, <a href="#S210">210</a>, <a
+href="#S217">217</a>, <a href="#S224">224</a>, <a href="#S225">225</a>, <a
+href="#S226">226</a>, <a href="#S255">255</a>.</li>
+
+<li>Fichte, J. G., 12, 82, 97, 123, 129, <a href="#S204">204</a>, <a
+href="#S250">250</a>.</li>
+
+<li>Filangieri, <a href="#S225">225</a>, <a href="#S254">254</a>.</li>
+
+<li>Fix, 4.</li>
+
+<li>Fleetwood, 143.</li>
+
+<li>Forbonnais, 68, 97, 116, 123, <a href="#S173">173</a>, <a
+href="#S190">190</a>, <a href="#S200">200</a>, <a href="#S214">214</a>, <a
+href="#S254">254</a>, <a href="#S255">255</a>.</li>
+
+<li>Forster, 79.</li>
+
+<li>Fortrey, Sam, <a href="#S196">196</a>.</li>
+
+<li>Fourier, Ch., 51, 66, 81, 85, 97, <a href="#S183">183</a>, <a
+href="#S207">207</a>, <a href="#S250">250</a>.</li>
+
+<li>Fox, 77.</li>
+
+<li>Franklin, B., 12, 33, 41, 42, 49, 71, 89, 97, 98, 107, 116, 128, <a
+href="#S173">173</a>, <a href="#S178">178</a>, <a href="#S203">203</a>, <a
+href="#S218">218</a>, <a href="#S219">219</a>, <a href="#S225">225</a>, <a
+href="#S232">232</a>, <a href="#S241">241</a>, <a href="#S242">242</a>, <a
+href="#S255">255</a>.</li>
+
+<li>Frégier, <a href="#S223">223</a>.</li>
+
+<li>Friedländer, 4.</li>
+
+<li>Friedrich II. (Emperor), 49, 83.</li>
+
+<li>Friedrich, M., 16, 114, <a href="#S244">244</a>, <a
+href="#S254">254</a>.</li>
+
+<li>Fullarton, 123, 125.</li>
+
+<li>Fuoco, 11, 22, 121, <a href="#S146">146</a>, <a href="#S154">154</a>,
+<a href="#S202">202</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">G.</p>
+
+<ul class="IX none">
+
+<li>Galiani, 8, 9, 42, 47, 98, 100, 104, 116, 120, 126, 128, 129, 140, 142,
+<a href="#S167">167</a>, <a href="#S187">187</a>, <a
+href="#S197">197</a>.</li>
+
+<li>Gallatin, 136.</li>
+
+<li>Ganilh, 12, 42, 51, 52, 55, 116, 123, <a href="#S147">147</a>, <a
+href="#S180">180</a>, <a href="#S188">188</a>, <a href="#S196">196</a>, <a
+href="#S214">214</a>, <a href="#S216">216</a>.</li>
+
+<li>Garcilasso, de la Vega, 9.</li>
+
+<li>Garnier, 16, 50, 137.</li>
+
+<li>Garve, 30, 50, 52, 99, 115, <a href="#S173">173</a>, <a
+href="#S231">231</a>.</li>
+
+<li>Gasparin, <a href="#S161">161</a>.</li>
+
+<li>Gavard, 17.</li>
+
+<li>Gee, 116.</li>
+
+<li>Geiler v. Kaisersberg, 39.</li>
+
+<li>Genovesi, 4, 16, 64, 97, 102, 123.<span class='pagenum'>[Pg
+460]</span></li>
+
+<li>Gerstner, <a href="#S253">253</a>.</li>
+
+<li>Gessler, <a href="#S261">261</a>.</li>
+
+<li>Gibbon, <a href="#S234">234</a>.</li>
+
+<li>Gioja, 2, 30, 42, 47, 51, 64, <a href="#S191">191</a>.</li>
+
+<li>Gobbi, 32.</li>
+
+<li>Godwin, <a href="#S243">243</a>, <a href="#S250">250</a>, <a
+href="#S254">254</a>.</li>
+
+<li>Goethe, 11, 25, 36.</li>
+
+<li>Goldsmith, <a href="#S254">254</a>.</li>
+
+<li>Gournay, 49, 108.</li>
+
+<li>Graham, <a href="#S243">243</a>.</li>
+
+<li>Graswinckel, 87.</li>
+
+<li>Gratian, 47.</li>
+
+<li>Graumann, 125.</li>
+
+<li>Graunt, <a href="#S245">245</a>.</li>
+
+<li>Gray, <a href="#S243">243</a>.</li>
+
+<li>Gregorius Tolosan, 48, 55.</li>
+
+<li>Grotius, H., 77, 87, <a href="#S187">187</a>, <a
+href="#S191">191</a>.</li>
+
+<li>Guérard, 143.</li>
+
+<li>Günther, <a href="#S194">194</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">H.</p>
+
+<ul class="IX none">
+
+<li>Hackluyt, 9.</li>
+
+<li>Haller, K. L. v., 14, <a href="#S256">256</a>.</li>
+
+<li>Hamann, 117.</li>
+
+<li>Hamilton, 90, <a href="#S152">152</a>.</li>
+
+<li>Hanssen, 40, 126, 139, 140, <a href="#S144">144</a>.</li>
+
+<li>Harless, 81.</li>
+
+<li>Harrington, J., 98, <a href="#S205">205</a>, <a
+href="#S253">253</a>.</li>
+
+<li>Harris, 47, 57, 128, <a href="#S180">180</a>.</li>
+
+<li>Hegel, 3.</li>
+
+<li>Held, <a href="#S146">146</a>.</li>
+
+<li>Helferich, 86, 137.</li>
+
+<li>Helvétius, 11, 38, <a href="#S231">231</a>.</li>
+
+<li>Herakleides, <a href="#S225">225</a>.</li>
+
+<li>Herbart, 16, 22.</li>
+
+<li>Herbert, 101, 142.</li>
+
+<li>Herber, J. G. v., <a href="#S265">265</a>.</li>
+
+<li>Hermann, F. B. W., 1, 2, 3, 11, 17, 42, 43, 44, 45, 50, 51, 101, 103,
+106, 108, 110, 113, 115, 118, 129, 137, 142, <a href="#S144">144</a>, <a
+href="#S145">145</a>, <a href="#S146">146</a>, <a href="#S147">147</a>, <a
+href="#S150">150</a>, <a href="#S152">152</a>, <a href="#S153">153</a>, <a
+href="#S154">154</a>, <a href="#S166">166</a>, <a href="#S172">172</a>, <a
+href="#S180">180</a>, <a href="#S181">181</a>, <a href="#S183">183</a>, <a
+href="#S186">186</a>, <a href="#S196">196</a>, <a href="#S196a">196a</a>,
+<a href="#S199">199</a>, <a href="#S204">204</a>, <a href="#S208">208</a>,
+<a href="#S211">211</a>, <a href="#S212">212</a>, <a href="#S216">216</a>,
+<a href="#S219">219</a>, <a href="#S231">231</a>, <a href="#S246">246</a>,
+<a href="#S259">259</a>.</li>
+
+<li>Herodotus, 37.</li>
+
+<li>Herrmann, E., 101, <a href="#S207">207</a>.</li>
+
+<li>Heuschling, <a href="#S154">154</a>.</li>
+
+<li>Hildebrand, B., 5, 13, 18, 79, 90, <a href="#S146">146</a>, <a
+href="#S205">205</a>.</li>
+
+<li>Hippokrates, 37.</li>
+
+<li>Hobbes, 42, 47, 50, 77, 107, 116, 118.</li>
+
+<li>Hoffmann, J. G., 97, 117, 119, <a href="#S159">159</a>, <a
+href="#S205">205</a>, <a href="#S246">246</a>, <a
+href="#S249">249</a>.</li>
+
+<li>Homer, 71, <a href="#S250">250</a>.</li>
+
+<li>Hood, <a href="#S168">168</a>.</li>
+
+<li>Hopkins, <a href="#S159">159</a>.</li>
+
+<li>Horn, <a href="#S245">245</a>, <a href="#S247">247</a>, <a
+href="#S248">248</a>, <a href="#S254">254</a>.</li>
+
+<li>Horneck, v. 19, 114, 116, <a href="#S254">254</a>.</li>
+
+<li>Howlett, 39.</li>
+
+<li>Hufeland, 2, 5, 12, 13, 46, 51, 59, 66, 87, 106, 107, 111, 118, <a
+href="#S152">152</a>, <a href="#S195">195</a>, <a
+href="#S221">221</a>.</li>
+
+<li>Hugo, G., 24, 69, 81.</li>
+
+<li>Humboldt, A. v., 32, 36, 61, 98, 106, 136, 139, <a
+href="#S214">214</a>.</li>
+
+<li>Hume, D., 11, 36, 42, 47, 50, 71, 96, 98, 116, 117, 121, 123, 125, 126,
+137, <a href="#S154">154</a>, <a href="#S185">185</a>, <a
+href="#S200">200</a>, <a href="#S214">214</a>, <a href="#S225">225</a>, <a
+href="#S242">242</a>, <a href="#S263">263</a>, <a
+href="#S264">264</a>.</li>
+
+<li>Hutcheson, 5, 11.</li>
+
+<li>Hutton, U. v., <a href="#S225">225</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">I.</p>
+
+<ul class="IX none">
+
+<li>Iambulos, 79.</li>
+
+<li>Isokrates, 57, <a href="#S231">231</a>.</li>
+
+<li>Ivernois, Sir F. d', <a href="#S239">239</a>, <a
+href="#S246">246</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">J.</p>
+
+<ul class="IX none">
+
+<li>Jacob, W., 120, 135, 137.</li>
+
+<li>Jakob, H. L. v., 16, 49, 71, 106, 107, 127, 128, <a
+href="#S147">147</a>, <a href="#S153">153</a>, <a href="#S195">195</a>, <a
+href="#S217">217</a>, <a href="#S219">219</a>.</li>
+
+<li>Jarke, <a href="#S202">202</a>.</li>
+
+<li>Jevons, 22, 129.</li>
+
+<li>Johnson, S., 93.</li>
+
+<li>Jones, R., <a href="#S148">148</a>, <a href="#S154">154</a>.<span
+class='pagenum'>[Pg 461]</span></li>
+
+<li>Jselin, 67.</li>
+
+<li>Jung, 76, <a href="#S156">156</a>; <a href="#TN">II</a>, 53, 101,
+173.</li>
+
+<li>Justi, v., 9, 17, 116, <a href="#S199">199</a>, <a
+href="#S237">237</a>, <a href="#S254">254</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">K.</p>
+
+<ul class="IX none">
+
+<li>Kant, 11, 87.</li>
+
+<li>Kauffmann, 3, 9, 126.</li>
+
+<li>Kautz, 29.</li>
+
+<li>Kees, v. <a href="#S194">194</a>.</li>
+
+<li>King, Ch., 48.</li>
+
+<li>King, G., 103.</li>
+
+<li>King, Lord, 124.</li>
+
+<li>Knapp, <a href="#S246">246</a>.</li>
+
+<li>Knies, 4, 5, 6, 7, 11, 18, 28, 42, 89, 95, 107, 116, 117, 139, <a
+href="#S169">169</a>, <a href="#S189">189</a>, <a href="#S213">213</a>, <a
+href="#S265">265</a>.</li>
+
+<li>Kosegarten, 117, <a href="#S202">202</a>.</li>
+
+<li>Kraus, 17, 128, 137, <a href="#S197">197</a>, <a
+href="#S265">265</a>.</li>
+
+<li>Krause, <a href="#S170">170</a>.</li>
+
+<li>Kröncke, 22, <a href="#S147">147</a>.</li>
+
+<li>Krug, L., <a href="#S192">192</a>, <a href="#S254">254</a>.</li>
+
+<li>Kudler, 49, 128.</li>
+
+</ul>
+
+<p class="p2 indent2">L.</p>
+
+<ul class="IX none">
+
+<li>Lafitte, <a href="#S202">202</a>.</li>
+
+<li>Lang, 22.</li>
+
+<li>Laspeyres, 129.</li>
+
+<li>Lassalle, 45, 84, <a href="#S163">163</a>, <a href="#S196a">196a</a>.</li>
+
+<li>Lau, <a href="#S245">245</a>.</li>
+
+<li>Lauderdale, Lord, 8, 9, 50, 51, 99, 103, 104, 106, 117, 128, 132, <a
+href="#S147">147</a>, <a href="#S200">200</a>, <a href="#S214">214</a>, <a
+href="#S217">217</a>, <a href="#S221">221</a>, <a href="#S231">231</a>, <a
+href="#S263">263</a>.</li>
+
+<li>Lavergne, L. de, 139.</li>
+
+<li>Law, 42, 96, 101, 107, 115, 116, 117, 121, 123, 127, <a
+href="#S254">254</a>.</li>
+
+<li>Legoyt, <a href="#S245">245</a>.</li>
+
+<li>Leib, 48, <a href="#S237b">237b</a>.</li>
+
+<li>Leibnitz, 13, 114, 140, <a href="#S254">254</a>.</li>
+
+<li>Leopoldt, <a href="#TN">II</a>, 87, 145.</li>
+
+<li>Leplay, 65.</li>
+
+<li>Letronne, 137, <a href="#S214">214</a>.</li>
+
+<li>Libanios, <a href="#S174">174</a>.</li>
+
+<li>Liebig, J. v., <a href="#S162">162</a>.</li>
+
+<li>Linguet, 69, <a href="#S174">174</a>.</li>
+
+<li>List, Fr., 45, 46, 50, 64, 98, <a href="#S154">154</a>, <a
+href="#S260">260</a>.</li>
+
+<li>Liverpool, Lord, 118, 120, 142.</li>
+
+<li>Livy, <a href="#S231">231</a>.</li>
+
+<li>Locke, J., 5, 42, 47, 77, 100, 107, 116, 123, 129, <a
+href="#S152">152</a>, <a href="#S154">154</a>, <a href="#S158">158</a>, <a
+href="#S188">188</a>, <a href="#S191">191</a>, <a href="#S193">193</a>, <a
+href="#S194">194</a>, <a href="#S199">199</a>, <a
+href="#S254">254</a>.</li>
+
+<li>Lotz, 5, 17, 20, 49, 50, 98, 99, 100, 115, 123, 128, <a
+href="#S144">144</a>, <a href="#S166">166</a>, <a href="#S169">169</a>, <a
+href="#S195">195</a>, <a href="#S202">202</a>.</li>
+
+<li>Louis XIV., <a href="#S221">221</a>.</li>
+
+<li>Lowe, 129, <a href="#S219">219</a>.</li>
+
+<li>Lueder, 37, 50, 117.</li>
+
+<li>Luther, M., 41, 49, 57, 114, 128, <a href="#S191">191</a>, <a
+href="#S254">254</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">M.</p>
+
+<ul class="IX none">
+
+<li>Mably, 79, 81.</li>
+
+<li>Macculloch, 21, 40, 42, 43, 47, 50, 93, 107, 112, 113, <a
+href="#S151">151</a>, <a href="#S164">164</a>, <a href="#S166">166</a>, <a
+href="#S173">173</a>, <a href="#S188">188</a>, <a href="#S197">197</a>, <a
+href="#S212">212</a>, <a href="#S253">253</a>, <a
+href="#S264">264</a>.</li>
+
+<li>Machiavelli, 21, <a href="#S191">191</a>, <a href="#S238">238</a>, <a
+href="#S242">242</a>, <a href="#S244">244</a>.</li>
+
+<li>Macleod, 89, 90, 107, 115, 123, <a href="#S154">154</a>.</li>
+
+<li>Macpherson, 143.</li>
+
+<li>Malthus, 3, 9, 33, 42, 43, 50, 55, 79, 80, 98, 100, 107, 111, 112, 128,
+129, <a href="#S147">147</a>, <a href="#S152">152</a>, <a
+href="#S153">153</a>, <a href="#S157">157</a>, <a href="#S159">159</a>, <a
+href="#S163">163</a>, <a href="#S164">164</a>, <a href="#S166">166</a>, <a
+href="#S183">183</a>, <a href="#S185">185</a>, <a href="#S188">188</a>, <a
+href="#S205">205</a>, <a href="#S214">214</a>, <a href="#S216">216</a>, <a
+href="#S217">217</a>, <a href="#S239">239</a>, <a href="#S241">241</a>, <a
+href="#S242">242</a>, <a href="#S243">243</a>, <a href="#S244">244</a>, <a
+href="#S247">247</a>, <a href="#S258">258</a>, <a
+href="#S263">263</a>.</li>
+
+<li>Malthusians, <a href="#S217">217</a>, <a href="#S254">254</a>.</li>
+
+<li>Mandeville, 11, 57, <a href="#S225">225</a>.</li>
+
+<li>Mangoldt, v., 6, 16, 22, 30, 43, 51, 53, 59, 63, 71, 106, 129, <a
+href="#S146">146</a>, <a href="#S149">149</a>, <a href="#S153">153</a>, <a
+href="#S157">157</a>, <a href="#S167">167</a>, <a href="#S177">177</a>, <a
+href="#S181">181</a>, <a href="#S195">195</a>, <a href="#S205">205</a>, <a
+href="#S220">220</a>.</li>
+
+<li>Mariana, 100, 114, <a href="#S231">231</a>.</li>
+
+<li>Marlo, K., 71, 79, <a href="#S178">178</a>, <a href="#S207">207</a>, <a
+href="#S242">242</a>, <a href="#S250">250</a>, <a href="#S251">251</a>, <a
+href="#S258">258</a>.</li>
+
+<li>Martineau, H., <a href="#S176">176</a>.</li>
+
+<li>Marx, K., 22, 42, 47, 107, <a href="#S189">189</a>.</li>
+
+<li>Masius, <a href="#S237">237</a>.</li>
+
+<li>Massie, 42.</li>
+
+<li>Melanchthon, 79, 100, <a href="#S191">191</a>.</li>
+
+<li>Mélon, 42, 90, 91, 97, 123, <a href="#S225">225</a>, <a
+href="#S254">254</a>.</li>
+
+<li>Menander, <a href="#S174">174</a>.<span class='pagenum'>[Pg
+462]</span></li>
+
+<li>Mendelsohn, 77.</li>
+
+<li>Menger, 2, 5, 101, 112.</li>
+
+<li>Mengotti, 50.</li>
+
+<li>Mercier de la Rivière, 22.</li>
+
+<li>Mercantilists, 9, 47, 48, 96, 97, 116, 121, 126, <a
+href="#S225">225</a>, <a href="#S236">236</a>, <a
+href="#S254">254</a>;</li>
+
+<li>  new, 116.</li>
+
+<li>Merivale, <a href="#S172">172</a>.</li>
+
+<li>Meyer, G., <a href="#S246">246</a>.</li>
+
+<li>Michaelis, 135.</li>
+
+<li>Mill, J., 47, 126, <a href="#S216">216</a>.</li>
+
+<li>Mill, J. S., 5, 20, 22, 34, 38, 40, 42, 46, 51, 74, 79, 88, 90, 97,
+106, 107, 111, 113, 121, 126, <a href="#S150">150</a>, <a
+href="#S152">152</a>, <a href="#S153">153</a>, <a href="#S157">157</a>, <a
+href="#S163">163</a>, <a href="#S164">164</a>, <a href="#S166">166</a>, <a
+href="#S170">170</a>, <a href="#S172">172</a>, <a href="#S176">176</a>, <a
+href="#S177">177</a>, <a href="#S178">178</a>, <a href="#S180">180</a>, <a
+href="#S183">183</a>, <a href="#S186">186</a>, <a href="#S188">188</a>, <a
+href="#S192">192</a>, <a href="#S195">195</a>, <a href="#S197">197</a>, <a
+href="#S213">213</a>, <a href="#S216">216</a>, <a href="#S221">221</a>, <a
+href="#S243">243</a>, <a href="#S250">250</a>, <a href="#S259">259</a>, <a
+href="#S262">262</a>, <a href="#S264">264</a>.</li>
+
+<li>Minard, <a href="#S223">223</a>.</li>
+
+<li>Mirabeau, Marq. de, 95, 97, 98, 117, 144, <a href="#S147">147</a>, <a
+href="#S191">191</a>, <a href="#S210">210</a>, <a href="#S214">214</a>, <a
+href="#S254">254</a>, <a href="#S263">263</a>.</li>
+
+<li>Mirabeau, Son, <a href="#S256">256</a>.</li>
+
+<li>Mischler, 1.</li>
+
+<li>Mittermaier, 94.</li>
+
+<li>Mohl, R., <a href="#S242">242</a>, <a href="#S253">253</a>, <a
+href="#S258">258</a>, <a href="#S259">259</a>, <a
+href="#S262">262</a>.</li>
+
+<li>Moleschott, <a href="#S162">162</a>.</li>
+
+<li>Moncada, 137.</li>
+
+<li>Montaigne, M., 98, <a href="#S236">236</a>.</li>
+
+<li>Montanari, 100, 116, 123, 125, 127, <a href="#S188">188</a>, <a
+href="#S220">220</a>.</li>
+
+<li>Montchrêtien de Vatteville, 9, 16, 48, 57.</li>
+
+<li>Montecuccoli, 16.</li>
+
+<li>Montesquieu, 37, 77, 89, 95, 116, 118, 123, <a href="#S185">185</a>, <a
+href="#S192">192</a>, <a href="#S199">199</a>, <a href="#S205">205</a>, <a
+href="#S220">220</a>, <a href="#S221">221</a>, <a href="#S237">237</a>, <a
+href="#S238">238</a>, <a href="#S240">240</a>, <a
+href="#S248">248</a>.</li>
+
+<li>Moreau de Jonnès, 18.</li>
+
+<li>Morelly, 79.</li>
+
+<li>Morhof, 19.</li>
+
+<li>Moritz (Marschall von Sachsen), <a href="#S255">255</a>.</li>
+
+<li>Morrison, <a href="#S176">176</a>, <a href="#S178">178</a>.</li>
+
+<li>Mortimer, Th., <a href="#S173">173</a>, <a href="#S175">175</a>; <a
+href="#TN">II</a>, 53.</li>
+
+<li>Morus, Th., 79, 98, 117, <a href="#S147">147</a>, <a
+href="#S166">166</a>.</li>
+
+<li>Möser, J., 42, 63, 69, 91, 117, <a href="#S161">161</a>, <a
+href="#S169">169</a>, <a href="#S173">173</a>, <a href="#S191">191</a>, <a
+href="#S200">200</a>, <a href="#S226">226</a>, <a href="#S242">242</a>, <a
+href="#S248">248</a>, <a href="#S254">254</a>, <a
+href="#S256">256</a>.</li>
+
+<li>Müller, Ad., 3, 5, 11, 12, 22, 28, 42, 50, 55, 64, 116, 117, 120, <a
+href="#S202">202</a>.</li>
+
+<li>Mun, Th., 48, 116.</li>
+
+<li>Muret, <a href="#S239">239</a>.</li>
+
+<li>Murhard, K., 52.</li>
+
+</ul>
+
+<p class="p2 indent2">N.</p>
+
+<ul class="IX none">
+
+<li>Nau, 19.</li>
+
+<li>Nebenius, 89, 120, 137, <a href="#S150">150</a>, <a
+href="#S182">182</a>, <a href="#S184">184</a>, <a href="#S186">186</a>, <a
+href="#S187">187</a>, <a href="#S195">195</a>, <a href="#S199">199</a>, <a
+href="#S219">219</a>.</li>
+
+<li>Necker, 103, <a href="#S163">163</a>, <a href="#S204">204</a>, <a
+href="#S254">254</a>.</li>
+
+<li>Neri, P., 100, 118, 120.</li>
+
+<li>Neumann, F. J., 6, 16, 100, <a href="#S246">246</a>.</li>
+
+<li>Newmarch, 137.</li>
+
+<li>Niebuhr, B. G., 92.</li>
+
+<li>North, Sir D., 9, 12, 47, 48, 97, 98, 114, 116, 121, 123, <a
+href="#S152">152</a>, <a href="#S154">154</a>, <a href="#S179">179</a>, <a
+href="#S191">191</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">O.</p>
+
+<ul class="IX none">
+
+<li>Obrecht, <a href="#S237a">237a</a><a name= "fnanchor_TN134" id=
+"fnanchor_TN134"></a><a href= "#footnote_TN134" class= "fnanchor">[TN
+134]</a>; <a href="#TN">II</a>, 164.</li>
+
+<li>Oppenheim, 116.</li>
+
+<li>Oresmius, 116, 120.</li>
+
+<li>Ortes, 16, 34, 38, 117, <a href="#S194">194</a>, <a
+href="#S217">217</a>, <a href="#S242">242</a>.</li>
+
+<li>Owen, R., 66, 128.</li>
+
+</ul>
+
+<p class="p2 indent2">P.</p>
+
+<ul class="IX none">
+
+<li>Pagnini, 100, 137.</li>
+
+<li>Paley, 50, <a href="#S254">254</a>.</li>
+
+<li>Palmieri, 9.</li>
+
+<li>Paoletti, <a href="#S173">173</a>.</li>
+
+<li>Paris, Comte de, <a href="#S176">176</a>.</li>
+
+<li>Patricius, 48, <a href="#S246">246</a>, <a href="#S254">254</a>.</li>
+
+<li>Paucton, 143.</li>
+
+<li>Paullus, Jul., 116.</li>
+
+<li>Perikles, <a href="#S231">231</a>.</li>
+
+<li>Périn, 11, <a href="#S254">254</a>.</li>
+
+<li>Petty, Sir W., 16, 47, 48, 57, 107, 116, 123, 127, 129, <a
+href="#S154">154</a>, <a href="#S164">164</a>, <a href="#S193">193</a>, <a
+href="#S214">214</a>, <a href="#S254">254</a>.</li>
+
+<li>Philemon, 69.</li>
+
+<li>Physiocrates, 5, 8, 47, 49, 97, 101, 106, 128, <a href="#S147">147</a>,
+<a href="#S154">154</a>, <a href="#S159">159</a>, <a href="#S214">214</a>,
+<a href="#S221">221</a>, <a href="#S225">225</a>, <a
+href="#S254">254</a>.</li>
+
+<li>(Pinto), 90, 98, 123, <a href="#S221">221</a>, <a
+href="#S225">225</a>.<span class='pagenum'>[Pg 463]</span></li>
+
+<li>Pitt, <a href="#S254">254</a>.</li>
+
+<li>Plato, 9, 12, 21, 23, 42, 57, 61, 62, 79, 116, <a href="#S190">190</a>,
+<a href="#S211">211</a>, <a href="#S250">250</a>, <a href="#S251">251</a>.
+
+<ul class="IX none">
+
+<li>&mdash;&mdash; Eryxias, 116.</li>
+
+</ul></li>
+
+<li>Plinius (Major), 71, 79, 117, 120, <a href="#S225">225</a>, <a
+href="#S231">231</a>.</li>
+
+<li>Plotinos, 79.</li>
+
+<li>Plutarch, 73.</li>
+
+<li>Pölitz, 17; <a href="#TN">II</a>, 194.</li>
+
+<li>Pollexfen, 9.</li>
+
+<li>Porter, 129, <a href="#S205">205</a>.</li>
+
+<li>Postlethwayt, <a href="#S173">173</a>.</li>
+
+<li>Price, <a href="#S238">238</a>.</li>
+
+<li>Prittwitz, v., 17, 51, <a href="#S214">214</a>, <a
+href="#S263">263</a>.</li>
+
+<li>Proudhon, 5, 66, 70, 77, 81, 82, 85, 97, <a href="#S185">185</a>.</li>
+
+<li>Puchta, G. F., 11, 14.</li>
+
+<li>Purves, <a href="#S253">253</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">Q.</p>
+
+<ul class="IX none">
+
+<li>Quesnay, 42, 44, 47, 49, 98, 101, 116, 121, 123, 125, 137, <a
+href="#S147">147</a>, <a href="#S154">154</a>, <a href="#S214">214</a>, <a
+href="#S221">221</a>, <a href="#S254">254</a>.</li>
+
+<li>Quételet, 18, <a href="#S248">248</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">R.</p>
+
+<ul class="IX none">
+
+<li>Rae, 45, 59.</li>
+
+<li>Raleigh, Sir W., 140, <a href="#S241">241</a>, <a href="#S252">252</a>,
+<a href="#S254">254</a>.</li>
+
+<li>Rau, K. H., 3, 5, 6, 9, 20, 22, 33, 38, 42, 43, 49, 50, 58, 64, 101,
+106, 109, 110, 111, 112, 116, 118, 120, 129, 131, 137, 143, <a
+href="#S144">144</a>, <a href="#S145">145</a>, <a href="#S146">146</a>, <a
+href="#S147">147</a>, <a href="#S153">153</a>, <a href="#S156">156</a>, <a
+href="#S161">161</a>, <a href="#S166">166</a>, <a href="#S168">168</a>, <a
+href="#S179">179</a>, <a href="#S181">181</a>, <a href="#S194">194</a>, <a
+href="#S195">195</a>, <a href="#S208">208</a>, <a href="#S212">212</a>, <a
+href="#S216">216</a>, <a href="#S225">225</a>, <a
+href="#S253">253</a>.</li>
+
+<li>Raumer, F. v., 49.</li>
+
+<li>Raynal, 49, 62, <a href="#S214">214</a>.</li>
+
+<li>Read, <a href="#S195">195</a>.</li>
+
+<li>Reformers, 47.</li>
+
+<li>Reitemeyer, 135.</li>
+
+<li>Reybaud, 78, 79.</li>
+
+<li>Ricardo, 1, 5, 22, 43, 44, 66, 90, 106, 107, 109, 111, 126, 129, <a
+href="#S147">147</a>, <a href="#S148">148</a>, <a href="#S150">150</a>, <a
+href="#S151">151</a>, <a href="#S152">152</a>, <a href="#S153">153</a>, <a
+href="#S154">154</a>, <a href="#S157">157</a>, <a href="#S164">164</a>, <a
+href="#S173">173</a>, <a href="#S175">175</a>, <a href="#S183">183</a>, <a
+href="#S184">184</a>, <a href="#S185">185</a>, <a href="#S186">186</a>, <a
+href="#S188">188</a>, <a href="#S195">195</a>, <a href="#S197">197</a>, <a
+href="#S201">201</a>, <a href="#S202">202</a>, <a href="#S212">212</a>, <a
+href="#S216">216</a>, <a href="#S263">263</a>.</li>
+
+<li>Ricardo's School, 47, 128, <a href="#S157">157</a>, <a
+href="#S183">183</a>, <a href="#S197">197</a>, <a
+href="#S200">200</a>.</li>
+
+<li>Richelieu, 16.</li>
+
+<li>Riedel, 16, 31, 65, 106, 118, <a href="#S179">179</a>, <a
+href="#S195">195</a>; <a href="#TN">II</a>, 139,
+187.</li>
+
+<li>Riehl, 41, 56, <a href="#S169">169</a>, <a href="#S230">230</a>.</li>
+
+<li>Ritter, K., 37.</li>
+
+<li>Rivet, <a href="#S258">258</a>.</li>
+
+<li>Rodbertus, 97, 135, <a href="#S154">154</a>, <a
+href="#S201">201</a>.</li>
+
+<li>Roesler, 90, <a href="#S157">157</a>, <a href="#S173">173</a>, <a
+href="#S193">193</a>, <a href="#S195">195</a>, <a
+href="#S207">207</a>.</li>
+
+<li>Rossi, 9, 42, 46, <a href="#S243">243</a>, <a
+href="#S248">248</a>.</li>
+
+<li>Rössig, 19.</li>
+
+<li>Rousseau, J. J., 16, 57, 62, 79, <a href="#S169">169</a>, <a
+href="#S202">202</a>, <a href="#S205">205</a>, <a href="#S229">229</a>, <a
+href="#S254">254</a>.</li>
+
+<li>Rümelin, 18.</li>
+
+</ul>
+
+<p class="p2 indent2">S.</p>
+
+<ul class="IX none">
+
+<li>Sadler, Th., <a href="#S239">239</a>, <a href="#S242">242</a>, <a
+href="#S243">243</a>, <a href="#S245">245</a>.</li>
+
+<li>St. Chamans, 8, 90, 116, 123, <a href="#S144">144</a>, <a
+href="#S214">214</a>.</li>
+
+<li>St. Just, 79.</li>
+
+<li>St. Simon, 54, 70, 80, 84, 86, 90.</li>
+
+<li>St. Simonists, 54, 70, 80, 84, 86, 90.</li>
+
+<li>Sallustius, 14, 21.</li>
+
+<li>Salmasius, 89, 97, 114, 116, <a href="#S191">191</a>, <a
+href="#S193">193</a>.</li>
+
+<li>Sartorius, 29, 128.</li>
+
+<li>Say, J. B., 1, 12, 16, 20, 22, 42, 43, 47, 50, 51, 53, 55, 58, 71, 87,
+90, 98, 104, 106, 108, 115, 129, 137, <a href="#S144">144</a>, <a
+href="#S145">145</a>, <a href="#S147">147</a>, <a href="#S151">151</a>, <a
+href="#S154">154</a>, <a href="#S169">169</a>, <a href="#S183">183</a>, <a
+href="#S195">195</a>, <a href="#S199">199</a>, <a href="#S200">200</a>, <a
+href="#S212">212</a>, <a href="#S216">216</a>, <a href="#S218">218</a>, <a
+href="#S223">223</a>, <a href="#S231">231</a>, <a href="#S243">243</a>, <a
+href="#S256">256</a>, <a href="#S263">263</a>.</li>
+
+<li>Say, L., 4, 9.</li>
+
+<li>Scaruffii, 134.</li>
+
+<li>Schäffle, 1, 2, 3, 4, 12, 30, 42, 43, 44, 47, 79, 89, 102, 110, 114,
+117, 129, <a href="#S152">152</a>, <a href="#S159">159</a>, <a
+href="#S176">176</a>, <a href="#S196a">196a</a>, <a href="#S207">207</a>,
+<a href="#S208">208</a>, <a href="#S218">218</a>, <a href="#S246">246</a>,
+<a href="#S250">250</a>, <a href="#S251">251</a>, <a
+href="#S258">258</a>.</li>
+
+<li>Schiller, Fr., 30, <a href="#S169">169</a>, <a
+href="#S204">204</a>.</li>
+
+<li>Schleiermacher, 16, 55, 63.<span class='pagenum'>[Pg 464]</span></li>
+
+<li>Schlettwein, 128, <a href="#S145">145</a>.</li>
+
+<li>Schlazer, U. L. v., 18, <a href="#S144">144</a>.</li>
+
+<li>Schlözer, Chr. v., 42, 116, 117, 128, <a href="#S168">168</a>, <a
+href="#S185">185</a>, <a href="#S254">254</a>.</li>
+
+<li>Schmalz, 17, 19, <a href="#S152">152</a>, <a href="#S195">195</a>.</li>
+
+<li>Schmitthenner, 42, 44, 50, 54, 95, 99, 108, 116, 117, 121, <a
+href="#S224">224</a>, <a href="#S253">253</a>.</li>
+
+<li>Schmoller, 42, <a href="#S147">147</a>.</li>
+
+<li>Schön, J., 11, 50, 97, <a href="#S195">195</a>.</li>
+
+<li>Schröder, v., 9, 19, 42, 53, 54, 90, 116, <a href="#S199">199</a>, <a
+href="#S210">210</a>, <a href="#S221">221</a>.</li>
+
+<li>Schulze, F. G., 20, 69, 96.</li>
+
+<li>Schüz, 11.</li>
+
+<li>Scialoja, 13, 17, 38, 41, 51.</li>
+
+<li>Seckendorff, B. L. v., 19, 114, 116, <a href="#S237">237</a>, <a
+href="#S254">254</a>.</li>
+
+<li>Seneca, L., 51, 69, 79, 100, <a href="#S190">190</a>, <a
+href="#S214">214</a>.</li>
+
+<li>Seneca, M., <a href="#S251">251</a>.</li>
+
+<li>Senior, 2, 22, 33, 34, 40, 46, 58, 102, 110, 112, 115, 121, 126, 129,
+130, 142, 143, <a href="#S148">148</a>, <a href="#S152">152</a>, <a
+href="#S155">155</a>, <a href="#S161">161</a>, <a href="#S165">165</a>, <a
+href="#S166">166</a>, <a href="#S167">167</a>, <a href="#S169">169</a>, <a
+href="#S173">173</a>, <a href="#S180">180</a>, <a href="#S181">181</a>, <a
+href="#S183">183</a>, <a href="#S185">185</a>, <a href="#S187">187</a>, <a
+href="#S189">189</a>, <a href="#S195">195</a>, <a href="#S200">200</a>, <a
+href="#S212">212</a>, <a href="#S242">242</a>.</li>
+
+<li>Serra, 33, 48, <a href="#S181">181</a>.</li>
+
+<li>Shakespeare, <a href="#S191">191</a>.</li>
+
+<li>Shuckburgh, 132, 137.</li>
+
+<li>Sismondi, 12, 22, 44, 50, 54, 55, 93, 97, 98, 106, 109, 117, 123, 128,
+<a href="#S144">144</a>, <a href="#S145">145</a>, <a href="#S147">147</a>,
+<a href="#S153">153</a>, <a href="#S154">154</a>, <a href="#S168">168</a>,
+<a href="#S174">174</a>, <a href="#S195">195</a>, <a href="#S201">201</a>,
+<a href="#S210">210</a>, <a href="#S214">214</a>, <a href="#S215">215</a>,
+<a href="#S216">216</a>, <a href="#S221">221</a>, <a href="#S231">231</a>,
+<a href="#S242">242</a>.</li>
+
+<li>Smith, Ad., 1, 2, 5, 11, 12, 20, 39, 40, 42, 44, 47, 48, 49, 52, 55,
+57, 58, 59, 66, 71, 81, 91, 97, 98, 104, 106, 107, 111, 112, 113, 116, 117,
+119, 120, 121, 123, 125, 128, 129, 130, 131, 134, 135, 137, <a
+href="#S144">144</a>, <a href="#S147">147</a>, <a href="#S148">148</a>, <a
+href="#S153">153</a>, <a href="#S154">154</a>, <a href="#S157">157</a>, <a
+href="#S161">161</a>, <a href="#S163">163</a>, <a href="#S164">164</a>, <a
+href="#S166">166</a>, <a href="#S167">167</a>, <a href="#S168">168</a>, <a
+href="#S171">171</a>, <a href="#S172">172</a>, <a href="#S174">174</a>, <a
+href="#S176">176</a>, <a href="#S179">179</a>, <a href="#S183">183</a>, <a
+href="#S185">185</a>, <a href="#S186">186</a>, <a href="#S192">192</a>, <a
+href="#S193">193</a>, <a href="#S195">195</a>, <a href="#S197">197</a>, <a
+href="#S202">202</a>, <a href="#S213">213</a>, <a href="#S214">214</a>, <a
+href="#S218">218</a>, <a href="#S221">221</a>, <a href="#S226">226</a>, <a
+href="#S236">236</a>, <a href="#S238">238</a>, <a
+href="#S242">242</a>.</li>
+
+<li>Smith, Th., 116, 137.</li>
+
+<li>Socialists, 6, 9, 12, 22, 53, 62, 66, 81, 82, 85, 88, 97, 117, <a
+href="#S147">147</a>, <a href="#S148">148</a>, <a href="#S202">202</a>, <a
+href="#S205">205</a>, <a href="#S214">214</a>, <a href="#S242">242</a>, <a
+href="#S254">254</a>, <a href="#S265">265</a>.</li>
+
+<li>Soden, Graf, 16, 51, 92, 129, <a href="#S194">194</a>, <a
+href="#S212">212</a>.</li>
+
+<li>Soetbeer, 138.</li>
+
+<li>Socrates, 9, 71, 100, <a href="#S250">250</a>, <a
+href="#S251">251</a>.</li>
+
+<li>Solera, 120.</li>
+
+<li>Solly, <a href="#S214">214</a>.</li>
+
+<li>Sonnenfels, v., <a href="#S160">160</a>, <a href="#S194">194</a>, <a
+href="#S254">254</a>.</li>
+
+<li>Spinoza, 88, <a href="#S254">254</a>.</li>
+
+<li>Spittler, 81.</li>
+
+<li>Stahl, F. J., 24, 78.</li>
+
+<li>Stein, K. v., <a href="#S254">254</a>, <a href="#S265">265</a>.</li>
+
+<li>Stein, L. v., 14, 16, 46, 79, 98, <a href="#S207">207</a>.</li>
+
+<li>Steinlein, 30, 47, 61.</li>
+
+<li>Steuart, Sir J., 16, 20, 25, 34, 42, 71, 100, 104, 117, 123, 127, 134,
+137, <a href="#S147">147</a>, <a href="#S157">157</a>, <a
+href="#S199">199</a>, <a href="#S201">201</a>, <a href="#S213">213</a>, <a
+href="#S224">224</a>, <a href="#S239">239</a>, <a href="#S242">242</a>, <a
+href="#S253">253</a>, <a href="#S254">254</a>, <a
+href="#S263">263</a>.</li>
+
+<li>Stoics, 72.</li>
+
+<li>Storch, H., 2, 3, 5, 7, 8, 10, 17, 27, 46, 50, 53, 55, 62, 71, 91, 96,
+106, 115, 116, 117, 120, <a href="#S145">145</a>, <a href="#S147">147</a>,
+<a href="#S165">165</a>.</li>
+
+<li>Strabo, 37, 61.</li>
+
+<li>Struensee, v., 90, 96, 119, <a href="#S210">210</a>.</li>
+
+<li>Süssmilch, <a href="#S239">239</a>, <a href="#S245">245</a>, <a
+href="#S247">247</a>, <a href="#S254">254</a>, <a
+href="#S256">256</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">T.</p>
+
+<ul class="IX none">
+
+<li>Tacitus, 41, <a href="#S238">238</a>, <a href="#S250">250</a>, <a
+href="#S251">251</a>.</li>
+
+<li>Temple, Sir W., 41, 57, 98, 104, 115, <a href="#S157">157</a>, <a
+href="#S185">185</a>, <a href="#S188">188</a>, <a href="#S214">214</a>, <a
+href="#S222">222</a>, <a href="#S231">231</a>, <a
+href="#S254">254</a>.</li>
+
+<li>Tengoborsky, 40, 139.</li>
+
+<li>Thaer, 69, 112, 129, 131.</li>
+
+<li>Thiers, 77.</li>
+
+<li>Thomas, Aquin, 21, 49, 57, <a href="#S191">191</a>.</li>
+
+<li>Thomasius, Chr., 19, 114.</li>
+
+<li>Thornton, H., 101, 123, 125, <a href="#S193">193</a>.</li>
+
+<li>Thornton, W., <a href="#S164">164</a>, <a href="#S166">166</a>, <a
+href="#S176">176</a>, <a href="#S253">253</a>.</li>
+
+<li>Thucydides, Pref., 16, 36, 63, <a href="#S229">229</a>.</li>
+
+<li>Thünen, v., 22, 106, 117, <a href="#S149">149</a>, <a
+href="#S151">151</a>, <a href="#S154">154</a>, <a href="#S158">158</a>, <a
+href="#S161">161</a>, <a href="#S165">165</a>, <a href="#S173">173</a>, <a
+href="#S178">178</a>, <a href="#S183">183</a>, <a
+href="#S195">195</a>.</li>
+
+<li>Tocqueville, 71.</li>
+
+<li>Tooke, Th., 100, 103, 104, 107, 108, 109, 112, 113, 123, 128, 137, 139,
+<a href="#S157">157</a>, <a href="#S179">179</a>, <a href="#S188">188</a>,
+<a href="#S193">193</a>.</li>
+
+<li>Torrens, 9, 58, 107, 126, 130, <a href="#S157">157</a>, <a
+href="#S164">164</a>, <a href="#S260">260</a>, <a
+href="#S262">262</a>.<span class='pagenum'>[Pg 465]</span></li>
+
+<li>Townsend, <a href="#S242">242</a>.</li>
+
+<li>Tucker (Progress of the U. S.), 71.</li>
+
+<li>Tucker, J., 1, 16, 54, 57, 97, 98, 102, 130, <a href="#S200">200</a>,
+<a href="#S216">216</a>, <a href="#S219">219</a>, <a href="#S254">254</a>,
+<a href="#S256">256</a>, <a href="#S262">262</a>.</li>
+
+<li>Turgot, 5, 9, 37, 42, 47, 49, 57, 70, 71, 90, 92, 95, 115, 116, 117, <a
+href="#S152">152</a>, <a href="#S159">159</a>, <a href="#S163">163</a>, <a
+href="#S178">178</a>, <a href="#S188">188</a>, <a href="#S191">191</a>, <a
+href="#S193">193</a>, <a href="#S194">194</a>, <a href="#S221">221</a>, <a
+href="#S232">232</a>.</li>
+
+<li>Twiss, 121.</li>
+
+</ul>
+
+<p class="p2 indent2">U.</p>
+
+<ul class="IX none">
+
+<li>Ulloa, 116.</li>
+
+<li>Umpfenbach, 39, 82, <a href="#S152">152</a>, <a
+href="#S173">173</a>.</li>
+
+<li>Ure, <a href="#S173">173</a>, <a href="#S176">176</a>.</li>
+
+<li>Ustariz, <a href="#S241">241</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">V.</p>
+
+<ul class="IX none">
+
+<li>Varro, 71.</li>
+
+<li>Vasco, <a href="#S192">192</a>, <a href="#S194">194</a>.</li>
+
+<li>Vauban, 9, 78, <a href="#S147">147</a>, <a href="#S254">254</a>.</li>
+
+<li>Vaughan, R., 107.</li>
+
+<li>Verri, 8, 9, 16, 42, 49, 55, 97, 98, 100, 101, 116, 123, <a
+href="#S159">159</a>, <a href="#S205">205</a>, <a href="#S214">214</a>, <a
+href="#S232">232</a>, <a href="#S254">254</a>.</li>
+
+<li>Viaaxnes, <a href="#S191">191</a>.</li>
+
+<li>Villegardelle, 81.</li>
+
+<li>Virgilius, 117.</li>
+
+<li>Voltaire, 11, 98, <a href="#S210">210</a>, <a href="#S225">225</a>, <a
+href="#S254">254</a>, <a href="#S255">255</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">W.</p>
+
+<ul class="IX none">
+
+<li>Wagner, Ad., 13, 90.</li>
+
+<li>Wakefield, D., 51, 64, 89.</li>
+
+<li>Wakefield, E. G., 130, <a href="#S185">185</a>, <a
+href="#S259">259</a>.</li>
+
+<li>Walker, A., <a href="#S151">151</a>, <a href="#S152">152</a>, <a
+href="#S176">176</a>, <a href="#S195">195</a>, <a href="#S202">202</a>, <a
+href="#S206">206</a>, <a href="#S242">242</a>.</li>
+
+<li>Wallace, <a href="#S242">242</a>.</li>
+
+<li>Wappäus, <a href="#S246">246</a>, <a href="#S248">248</a>.</li>
+
+<li>Watts, <a href="#S176">176</a>.</li>
+
+<li>Weinhold, <a href="#S258">258</a>.</li>
+
+<li>Weishaupt, <a href="#S214">214</a>.</li>
+
+<li>Wells, 10.</li>
+
+<li>West, <a href="#S154">154</a>.</li>
+
+<li>Weyland, <a href="#S242">242</a>, <a href="#S243">243</a>.</li>
+
+<li>Whately, 17, 21, 110, <a href="#S149">149</a>.</li>
+
+<li>Wirth, M., <a href="#S185">185</a>.</li>
+
+<li>Wit, J. de, 92, 108.</li>
+
+<li>Wolf, Chr. v., <a href="#S175">175</a>, <a href="#S256">256</a>.</li>
+
+<li>Wolkoff, 35, 42, 43, <a href="#S161">161</a>, <a
+href="#S186">186</a>.</li>
+
+<li>Woodward, 88.</li>
+
+</ul>
+
+<p class="p2 indent2">X.</p>
+
+<ul class="IX none">
+
+<li>Xenophon, 9, 21, 57, 98, 100, 116.</li>
+
+</ul>
+
+<p class="p2 indent2">Y.</p>
+
+<ul class="IX none">
+
+<li>Young, A., 32, 40, 42, 110, 137, 143, <a href="#S242">242</a>, <a
+href="#S254">254</a>.</li>
+
+</ul>
+
+<p class="p2 indent2">Z.</p>
+
+<ul class="IX none">
+
+<li>Zachariä, K. S., 29, 37, 83, 87, 97, 128, <a href="#S214">214</a>, <a
+href="#S229">229</a>.</li>
+
+<li>Zeno, 98.</li>
+
+<li>Zincke, 49.</li>
+
+<li>Zwinglius, <a href="#S191">191</a>.</li>
+</ul>
+
+<p class="p2 center">DAVID ATWOOD, STEREOTYPER AND PRINTER, MADISON, WIS.</p>
+
+<div class='tnote p4'>
+<h3>Transcriber's Notes:</h3>
+
+<p>Footnotes were moved to the end of the section to which they pertain.
+Because footnote numbers in the original begin at '1' for each section, the
+section number has been added before the footnote number, e.g. <span
+class="smaller"> <sup>[156-1]</sup></span>. Anchors for footnotes 208-4 and
+232-5, missing in the original text, were placed in their most likely
+position. Spelling corrections and transliterations of Greek are provided
+as footnotes, below, annotated as <span class="smaller"><sup>[TN
+1]</sup></span>.</p>
+
+<p>In the Index to Names of Authors, references to sections 1 - 143 pertain
+to Volume 1. See https://www.gutenberg.org/ebooks/27698. <a
+name="TN"></a>Eight entries have section numbers following the Roman
+numeral "II" that may have been inadvertently added by the publisher to
+this book from an earlier edition. There is no text in this book to which
+links could be established for these eight entries.</p>
+
+<p>Punctuation, including accents in French and Spanish, was standardized.
+Hyphenated words were standardized. For consistency with the remaining
+text, an umlaut was added to 'coöperate.' Duplicate words, e.g. 'the the,'
+were removed. Obsolete and alternative spellings were retained.</p>
+
+<p>A few tables were adjusted with addition of column headers, use of key
+codes instead of headers, and addition of decimal points within column
+data, to improve display in browsers and e-readers.</p>
+
+<p class="footnote"><a name="footnote_TN1" id="footnote_TN1"></a>
+<a href="#fnanchor_TN1">[TN 1]</a> 'praticable' in the original<br />
+
+<a name="footnote_TN2" id="footnote_TN2"></a><a href="#fnanchor_TN2">[TN
+2]</a> 'higly' in the original<br />
+
+<a name="footnote_TN3" id="footnote_TN3"></a><a href="#fnanchor_TN3">[TN
+3]</a> 'innocousness' in the original<br />
+
+<a name="footnote_TN4" id="footnote_TN4"></a><a href="#fnanchor_TN4">[TN
+4]</a> 'analagous' in the original<br />
+
+<a name="footnote_TN5" id="footnote_TN5"></a><a href="#fnanchor_TN5">[TN
+5]</a> 'diffcult' in the original<br />
+
+<a name="footnote_TN6" id="footnote_TN6"></a><a href="#fnanchor_TN6">[TN
+6]</a> beginning of word is missing in the original<br />
+
+<a name="footnote_TN7" id="footnote_TN7"></a><a href="#fnanchor_TN7">[TN
+7]</a> 'CXLII' in the original<br />
+
+<a name="footnote_TN8" id="footnote_TN8"></a><a href="#fnanchor_TN8">[TN
+8]</a> 'themslves' in the original<br />
+
+<a name="footnote_TN9" id="footnote_TN9"></a><a href="#fnanchor_TN9">[TN
+9]</a> 'Sclavic' in the original<br />
+
+<a name="footnote_TN10" id="footnote_TN10"></a><a href="#fnanchor_TN10">[TN
+10]</a> 'Hildebraud' in the original<br />
+
+<a name="footnote_TN11" id="footnote_TN11"></a><a href="#fnanchor_TN11">[TN
+11]</a> '80' in the original<br />
+
+<a name="footnote_TN12" id="footnote_TN12"></a><a href="#fnanchor_TN12">[TN
+12]</a> 'collossal' in the original<br />
+
+<a name="footnote_TN13" id="footnote_TN13"></a><a href="#fnanchor_TN13">[TN
+13]</a> [sic]<br />
+
+<a name="footnote_TN14" id="footnote_TN14"></a><a href="#fnanchor_TN14">[TN
+14]</a> 'domicil' in the original<br />
+
+<a name="footnote_TN15" id="footnote_TN15"></a><a href="#fnanchor_TN15">[TN
+15]</a> 'Spiers' in the original ('Speyer' in German)<br />
+
+<a name="footnote_TN16" id="footnote_TN16"></a><a href="#fnanchor_TN16">[TN
+16]</a> 'Eninb.' in the original<br />
+
+<a name="footnote_TN17" id="footnote_TN17"></a><a href="#fnanchor_TN17">[TN
+17]</a> 'tradesmens'' in the original<br />
+
+<a name="footnote_TN18" id="footnote_TN18"></a><a href="#fnanchor_TN18">[TN
+18]</a> 'anterest' in the original<br />
+
+<a name="footnote_TN19" id="footnote_TN19"></a><a href="#fnanchor_TN19">[TN
+19]</a> Numerator is blank in the original.<br />
+
+<a name="footnote_TN20" id="footnote_TN20"></a><a href="#fnanchor_TN20">[TN
+20]</a> 'Haudbuch' in the original<br />
+
+<a name="footnote_TN21" id="footnote_TN21"></a><a href="#fnanchor_TN21">[TN
+21]</a> 'Peleponnesian' in the original<br />
+
+<a name="footnote_TN22" id="footnote_TN22"></a><a href="#fnanchor_TN22">[TN
+22]</a> 'Staatswirthschatliche' in the original<br />
+
+<a name="footnote_TN23" id="footnote_TN23"></a><a href="#fnanchor_TN23">[TN
+23]</a> transliteration: tokos<br />
+
+<a name="footnote_TN24" id="footnote_TN24"></a><a href="#fnanchor_TN24">[TN
+24]</a> 'Samalsius' in the original<br />
+
+<a name="footnote_TN25" id="footnote_TN25"></a><a href="#fnanchor_TN25">[TN
+25]</a> 'analagous' in the original<br />
+
+<a name="footnote_TN26" id="footnote_TN26"></a><a href="#fnanchor_TN26">[TN
+26]</a> 'exceeedingly' in the original<br />
+
+<a name="footnote_TN27" id="footnote_TN27"></a><a href="#fnanchor_TN27">[TN
+27]</a> 'Confedration' in the original<br />
+
+<a name="footnote_TN28" id="footnote_TN28"></a><a href="#fnanchor_TN28">[TN
+28]</a> transliteration: oikos<br />
+
+<a name="footnote_TN29" id="footnote_TN29"></a><a href="#fnanchor_TN29">[TN
+29]</a> transliteration: ploutis<br />
+
+<a name="footnote_TN30" id="footnote_TN30"></a><a href="#fnanchor_TN30">[TN
+30]</a> transliteration: cheiromacha<br />
+
+<a name="footnote_TN31" id="footnote_TN31"></a><a href="#fnanchor_TN31">[TN
+31]</a> 'anuum' in the original<br />
+
+<a name="footnote_TN32" id="footnote_TN32"></a><a href="#fnanchor_TN32">[TN
+32]</a> decimal missing in the original.<br />
+
+<a name="footnote_TN33" id="footnote_TN33"></a><a href="#fnanchor_TN33">[TN
+33]</a> transliteration: oinos<br />
+
+<a name="footnote_TN34" id="footnote_TN34"></a><a href="#fnanchor_TN34">[TN
+34]</a> 'capaple' in the original<br />
+
+<a name="footnote_TN35" id="footnote_TN35"></a><a href="#fnanchor_TN35">[TN
+35]</a> transliteration: pheiditia<br />
+
+<a name="footnote_TN36" id="footnote_TN36"></a><a href="#fnanchor_TN36">[TN
+36]</a> 'passsionnées' in the original<br />
+
+<a name="footnote_TN37" id="footnote_TN37"></a><a href="#fnanchor_TN37">[TN
+37]</a> transliteration: Chrêmatistikai<br />
+
+<a name="footnote_TN38" id="footnote_TN38"></a><a href="#fnanchor_TN38">[TN
+38]</a> transliteration: analôtikai<br />
+
+<a name="footnote_TN39" id="footnote_TN39"></a><a href="#fnanchor_TN39">[TN
+39]</a> 'pnrposes' in the original<br />
+
+<a name="footnote_TN40" id="footnote_TN40"></a><a href="#fnanchor_TN40">[TN
+40]</a> 'Smilh' in the original<br />
+
+<a name="footnote_TN41" id="footnote_TN41"></a><a href="#fnanchor_TN41">[TN
+41]</a> 'analagous' in the original<br />
+
+<a name="footnote_TN42" id="footnote_TN42"></a><a href="#fnanchor_TN42">[TN
+42]</a> 'civlization' in the original<br />
+
+<a name="footnote_TN43" id="footnote_TN43"></a><a href="#fnanchor_TN43">[TN
+43]</a>'rêciprocquement' in the original<br />
+
+<a name="footnote_TN44" id="footnote_TN44"></a><a href="#fnanchor_TN44">[TN
+44]</a> 'carricature' in the original<br />
+
+<a name="footnote_TN45" id="footnote_TN45"></a><a href="#fnanchor_TN45">[TN
+45]</a> 'but-ends' in the original<br />
+
+<a name="footnote_TN46" id="footnote_TN46"></a><a href="#fnanchor_TN46">[TN
+46]</a> 'partment' in the original<br />
+
+<a name="footnote_TN47" id="footnote_TN47"></a><a href="#fnanchor_TN47">[TN
+47]</a> 'Similarlly' in the original<br />
+
+<a name="footnote_TN48" id="footnote_TN48"></a><a href="#fnanchor_TN48">[TN
+48]</a> 'Lois' in the original<br />
+
+<a name="footnote_TN49" id="footnote_TN49"></a><a href="#fnanchor_TN49">[TN
+49]</a> transliteration: spermologois<br />
+
+<a name="footnote_TN50" id="footnote_TN50"></a><a href="#fnanchor_TN50">[TN
+50]</a> 'itfelf' in the original<br />
+
+<a name="footnote_TN51" id="footnote_TN51"></a><a href="#fnanchor_TN51">[TN
+51]</a> 'childrens'' in the original<br />
+
+<a name="footnote_TN52" id="footnote_TN52"></a><a href="#fnanchor_TN52">[TN
+52]</a> 'candalabras' in the original<br />
+
+<a name="footnote_TN53" id="footnote_TN53"></a><a href="#fnanchor_TN53">[TN
+53]</a> 'accounr' in the original<br />
+
+<a name="footnote_TN54" id="footnote_TN54"></a><a href="#fnanchor_TN54">[TN
+54]</a> 'palateable' in the original<br />
+
+<a name="footnote_TN55" id="footnote_TN55"></a><a href="#fnanchor_TN55">[TN
+55]</a> 'as' in the original<br />
+
+<a name="footnote_TN56" id="footnote_TN56"></a><a href="#fnanchor_TN56">[TN
+56]</a> 'in stead in the original<br />
+
+<a name="footnote_TN57" id="footnote_TN57"></a><a href="#fnanchor_TN57">[TN
+57]</a> 'ærarium' in the original<br />
+
+<a name="footnote_TN58" id="footnote_TN58"></a><a href="#fnanchor_TN58">[TN
+58]</a> 'capiital' in the original<br />
+
+<a name="footnote_TN59" id="footnote_TN59"></a><a href="#fnanchor_TN59">[TN
+59]</a> 'chimnies' in the original<br />
+
+<a name="footnote_TN60" id="footnote_TN60"></a><a href="#fnanchor_TN60">[TN
+60]</a> 'Silesea' in the original<br />
+
+<a name="footnote_TN61" id="footnote_TN61"></a><a href="#fnanchor_TN61">[TN
+61]</a> 'Rheinish' in the original<br />
+
+<a name="footnote_TN62" id="footnote_TN62"></a><a href="#fnanchor_TN62">[TN
+62]</a> 'Worterbuche' in the original<br />
+
+<a name="footnote_TN63" id="footnote_TN63"></a><a href="#fnanchor_TN63">[TN
+63]</a> 'Teleogically' in the original<br />
+
+<a name="footnote_TN64" id="footnote_TN64"></a><a href="#fnanchor_TN64">[TN
+64]</a> 'sociétié' in the original<br />
+
+<a name="footnote_TN65" id="footnote_TN65"></a><a href="#fnanchor_TN65">[TN
+65]</a> 'diviseé' in the original<br />
+
+<a name="footnote_TN66" id="footnote_TN66"></a><a href="#fnanchor_TN66">[TN
+66]</a> 'Enquéte' in the original<br />
+
+<a name="footnote_TN67" id="footnote_TN67"></a><a href="#fnanchor_TN67">[TN
+67]</a> 'occulte' in the original<br />
+
+<a name="footnote_TN68" id="footnote_TN68"></a><a href="#fnanchor_TN68">[TN
+68]</a> 'uniformily' in the original<br />
+
+<a name="footnote_TN69" id="footnote_TN69"></a><a href="#fnanchor_TN69">[TN
+69]</a> 'incontestibly' in the original<br />
+
+<a name="footnote_TN70" id="footnote_TN70"></a><a href="#fnanchor_TN70">[TN
+70]</a> 'grevious' in the original<br />
+
+<a name="footnote_TN71" id="footnote_TN71"></a><a href="#fnanchor_TN71">[TN
+71]</a> 'imposees' in the original<br />
+
+<a name="footnote_TN72" id="footnote_TN72"></a><a href="#fnanchor_TN72">[TN
+72]</a> 'Chateanneuf' in the original<br />
+
+<a name="footnote_TN73" id="footnote_TN73"></a><a href="#fnanchor_TN73">[TN
+73]</a> 'Familes' in the original<br />
+
+<a name="footnote_TN74" id="footnote_TN74"></a><a href="#fnanchor_TN74">[TN
+74]</a> 'Reflessioni sulla Populazione' in the original<br />
+
+<a name="footnote_TN75" id="footnote_TN75"></a><a href="#fnanchor_TN75">[TN
+75]</a> transliteration: Ktêma es aei<br />
+
+<a name="footnote_TN76" id="footnote_TN76"></a><a href="#fnanchor_TN76">[TN
+76]</a> 'extraordinay' in the original<br />
+
+<a name="footnote_TN77" id="footnote_TN77"></a><a href="#fnanchor_TN77">[TN
+77]</a> 'Germanans' in the original<br />
+
+<a name="footnote_TN78" id="footnote_TN78"></a><a href="#fnanchor_TN78">[TN
+78]</a> 'civtilzed' in the original<br />
+
+<a name="footnote_TN79" id="footnote_TN79"></a><a href="#fnanchor_TN79">[TN
+79]</a> 'of' missing in the original<br />
+
+<a name="footnote_TN80" id="footnote_TN80"></a><a href="#fnanchor_TN80">[TN
+80]</a> 'Persannes' in the original<br />
+
+<a name="footnote_TN81" id="footnote_TN81"></a><a href="#fnanchor_TN81">[TN
+81]</a> 'Prussaia' in the original<br />
+
+<a name="footnote_TN82" id="footnote_TN82"></a><a href="#fnanchor_TN82">[TN
+82]</a> 'Gessellschaft' in the original<br />
+
+<a name="footnote_TN83" id="footnote_TN83"></a><a href="#fnanchor_TN83">[TN
+83]</a> 'Pommeranian' in the original<br />
+
+<a name="footnote_TN84" id="footnote_TN84"></a><a href="#fnanchor_TN84">[TN
+84]</a> 'geater' in the original<br />
+
+<a name="footnote_TN85" id="footnote_TN85"></a><a href="#fnanchor_TN85">[TN
+85]</a> 'legitamatized' in the original<br />
+
+<a name="footnote_TN86" id="footnote_TN86"></a><a href="#fnanchor_TN86">[TN
+86]</a> 'Vicbahn' in the original<br />
+
+<a name="footnote_TN87" id="footnote_TN87"></a><a href="#fnanchor_TN87">[TN
+87]</a> 'Chatelet' in the original<br />
+
+<a name="footnote_TN88" id="footnote_TN88"></a><a href="#fnanchor_TN88">[TN
+88]</a> 'Mediceinische' in the original<br />
+
+<a name="footnote_TN89" id="footnote_TN89"></a><a href="#fnanchor_TN89">[TN
+89]</a> 'Duchatelet' in the original<br />
+
+<a name="footnote_TN90" id="footnote_TN90"></a><a href="#fnanchor_TN90">[TN
+90]</a> transliteration: skylax<br />
+
+<a name="footnote_TN91" id="footnote_TN91"></a><a href="#fnanchor_TN91">[TN
+91]</a> transliteration: nousos thêleia<br />
+
+<a name="footnote_TN92" id="footnote_TN92"></a><a href="#fnanchor_TN92">[TN
+92]</a> transliteration: Gaios Laitôrios<br />
+
+<a name="footnote_TN93" id="footnote_TN93"></a><a href="#fnanchor_TN93">[TN
+93]</a> transliteration: koinônia hapantôn hierôn kai chrêmatôn<br />
+
+<a name="footnote_TN94" id="footnote_TN94"></a><a href="#fnanchor_TN94">[TN
+94]</a> 'frauzösischen' in the original<br />
+
+<a name="footnote_TN95" id="footnote_TN95"></a><a href="#fnanchor_TN95">[TN
+95]</a> 'Plutatch' in the original<br />
+
+<a name="footnote_TN96" id="footnote_TN96"></a><a href="#fnanchor_TN96">[TN
+96]</a> 'Thesmophoriazasuses' in the original<br />
+
+<a name="footnote_TN97" id="footnote_TN97"></a><a href="#fnanchor_TN97">[TN
+97]</a> 'rennaissance' in the original<br />
+
+<a name="footnote_TN98" id="footnote_TN98"></a><a href="#fnanchor_TN98">[TN
+98]</a> 'Pausam.' in the original<br />
+
+<a name="footnote_TN99" id="footnote_TN99"></a><a href="#fnanchor_TN99">[TN
+99]</a> 'Weltjkonomie' in the original<br />
+
+<a name="footnote_TN100" id="footnote_TN100"></a><a
+href="#fnanchor_TN100">[TN 100]</a> 'p lyandry' in the original<br />
+
+<a name="footnote_TN101" id="footnote_TN101"></a><a
+href="#fnanchor_TN101">[TN 101]</a> 'transkaukasia' in the original<br />
+
+<a name="footnote_TN102" id="footnote_TN102"></a><a
+href="#fnanchor_TN102">[TN 102]</a> 'Litthuanian' in the original<br />
+
+<a name="footnote_TN103" id="footnote_TN103"></a><a
+href="#fnanchor_TN103">[TN 103]</a> 'earlist' in the original<br />
+
+<a name="footnote_TN104" id="footnote_TN104"></a><a
+href="#fnanchor_TN104">[TN 104]</a> 'manifest' in the original<br />
+
+<a name="footnote_TN105" id="footnote_TN105"></a><a
+href="#fnanchor_TN105">[TN 105]</a> 'Akadamie' in the original<br />
+
+<a name="footnote_TN106" id="footnote_TN106"></a><a
+href="#fnanchor_TN106">[TN 106]</a> 'Schmithenner' in the original<br />
+
+<a name="footnote_TN107" id="footnote_TN107"></a><a
+href="#fnanchor_TN107">[TN 107]</a> 'Politche' in the original<br />
+
+<a name="footnote_TN108" id="footnote_TN108"></a><a
+href="#fnanchor_TN108">[TN 108]</a> 'Phillippe' in the original<br />
+
+<a name="footnote_TN109" id="footnote_TN109"></a><a
+href="#fnanchor_TN109">[TN 109]</a> 'Freidrichs' in the original<br />
+
+<a name="footnote_TN110" id="footnote_TN110"></a><a
+href="#fnanchor_TN110">[TN 110]</a> 'Salsburg' in the original<br />
+
+<a name="footnote_TN111" id="footnote_TN111"></a><a
+href="#fnanchor_TN111">[TN 111]</a> 'end' in the original<br />
+
+<a name="footnote_TN112" id="footnote_TN112"></a><a
+href="#fnanchor_TN112">[TN 112]</a> 'Spiers' in the original<br />
+
+<a name="footnote_TN113" id="footnote_TN113"></a><a
+href="#fnanchor_TN113">[TN 113]</a> 'Un' in the original<br />
+
+<a name="footnote_TN114" id="footnote_TN114"></a><a
+href="#fnanchor_TN114">[TN 114]</a> 'Milleleuropa' in the original<br />
+
+<a name="footnote_TN115" id="footnote_TN115"></a><a
+href="#fnanchor_TN115">[TN 115]</a> 'kultivirten' in the original<br />
+
+<a name="footnote_TN116" id="footnote_TN116"></a><a
+href="#fnanchor_TN116">[TN 116]</a> 'Sclavic' in the original<br />
+
+<a name="footnote_TN117" id="footnote_TN117"></a><a
+href="#fnanchor_TN117">[TN 117]</a> 'Appollo' in the original<br />
+
+<a name="footnote_TN118" id="footnote_TN118"></a><a
+href="#fnanchor_TN118">[TN 118]</a> 'Appenines' in the original<br />
+
+<a name="footnote_TN119" id="footnote_TN119"></a><a
+href="#fnanchor_TN119">[TN 119]</a> 'bivouacing' in the original<br />
+
+<a name="footnote_TN120" id="footnote_TN120"></a><a
+href="#fnanchor_TN120">[TN 120]</a> 'histoirique' in the original<br />
+
+<a name="footnote_TN121" id="footnote_TN121"></a><a
+href="#fnanchor_TN121">[TN 121]</a> 'controvery' in the original<br />
+
+<a name="footnote_TN122" id="footnote_TN122"></a><a
+href="#fnanchor_TN122">[TN 122]</a> 'ausgebeuteteten' in the original<br />
+
+<a name="footnote_TN123" id="footnote_TN123"></a><a
+href="#fnanchor_TN123">[TN 123]</a> 'univesrsalissima' in the original<br />
+
+<a name="footnote_TN124" id="footnote_TN124"></a><a
+href="#fnanchor_TN124">[TN 124]</a> 'commerzio' in the original<br />
+
+<a name="footnote_TN125" id="footnote_TN125"></a><a
+href="#fnanchor_TN125">[TN 125]</a> 'Mauth und Zollanstalten' in the
+original<br />
+
+<a name="footnote_TN126" id="footnote_TN126"></a><a
+href="#fnanchor_TN126">[TN 126]</a> 'Realisirung' in the original<br />
+
+<a name="footnote_TN127" id="footnote_TN127"></a><a
+href="#fnanchor_TN127">[TN 127]</a> 'Menreinfuhr' in the original<br />
+
+<a name="footnote_TN128" id="footnote_TN128"></a><a
+href="#fnanchor_TN128">[TN 128]</a> 'an' in the original'<br />
+
+<a name="footnote_TN129" id="footnote_TN129"></a><a
+href="#fnanchor_TN129">[TN 129]</a> 'Astarta' in the original<br />
+
+<a name="footnote_TN130" id="footnote_TN130"></a><a
+href="#fnanchor_TN130">[TN 130]</a> 'Nymweg' in the original<br />
+
+<a name="footnote_TN131" id="footnote_TN131"></a><a
+href="#fnanchor_TN131">[TN 131]</a> 'resourcess' in the original<br />
+
+<a name="footnote_TN132" id="footnote_TN132"></a><a
+href="#fnanchor_TN132">[TN 132]</a> 'repressailles' in the original<br />
+
+<a name="footnote_TN133" id="footnote_TN133"></a><a
+href="#fnanchor_TN133">[TN 133]</a> 'Mercantilsystem' in the original<br />
+
+<a name="footnote_TN134" id="footnote_TN134"></a><a
+href="#fnanchor_TN134">[TN 134]</a> '238a' in the original</p>
+
+</div>
+
+
+
+
+
+
+
+<pre>
+
+
+
+
+
+End of the Project Gutenberg EBook of Principles of Political Economy, Vol.
+II, by William Roscher
+
+*** END OF THIS PROJECT GUTENBERG EBOOK PRINCIPLES POLITICAL ECONOMY, VOL II ***
+
+***** This file should be named 38655-h.htm or 38655-h.zip *****
+This and all associated files of various formats will be found in:
+        https://www.gutenberg.org/3/8/6/5/38655/
+
+Produced by Frank van Drogen, Carol Brown, Gwen Adams,
+Elizabeth Oscanyan, and the Online Distributed Proofreading
+Team at https://www.pgdp.net.
+
+
+Updated editions will replace the previous one--the old editions
+will be renamed.
+
+Creating the works from public domain print editions means that no
+one owns a United States copyright in these works, so the Foundation
+(and you!) can copy and distribute it in the United States without
+permission and without paying copyright royalties.  Special rules,
+set forth in the General Terms of Use part of this license, apply to
+copying and distributing Project Gutenberg-tm electronic works to
+protect the PROJECT GUTENBERG-tm concept and trademark.  Project
+Gutenberg is a registered trademark, and may not be used if you
+charge for the eBooks, unless you receive specific permission.  If you
+do not charge anything for copies of this eBook, complying with the
+rules is very easy.  You may use this eBook for nearly any purpose
+such as creation of derivative works, reports, performances and
+research.  They may be modified and printed and given away--you may do
+practically ANYTHING with public domain eBooks.  Redistribution is
+subject to the trademark license, especially commercial
+redistribution.
+
+
+
+*** START: FULL LICENSE ***
+
+THE FULL PROJECT GUTENBERG LICENSE
+PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK
+
+To protect the Project Gutenberg-tm mission of promoting the free
+distribution of electronic works, by using or distributing this work
+(or any other work associated in any way with the phrase "Project
+Gutenberg"), you agree to comply with all the terms of the Full Project
+Gutenberg-tm License (available with this file or online at
+https://gutenberg.org/license).
+
+
+Section 1.  General Terms of Use and Redistributing Project Gutenberg-tm
+electronic works
+
+1.A.  By reading or using any part of this Project Gutenberg-tm
+electronic work, you indicate that you have read, understand, agree to
+and accept all the terms of this license and intellectual property
+(trademark/copyright) agreement.  If you do not agree to abide by all
+the terms of this agreement, you must cease using and return or destroy
+all copies of Project Gutenberg-tm electronic works in your possession.
+If you paid a fee for obtaining a copy of or access to a Project
+Gutenberg-tm electronic work and you do not agree to be bound by the
+terms of this agreement, you may obtain a refund from the person or
+entity to whom you paid the fee as set forth in paragraph 1.E.8.
+
+1.B.  "Project Gutenberg" is a registered trademark.  It may only be
+used on or associated in any way with an electronic work by people who
+agree to be bound by the terms of this agreement.  There are a few
+things that you can do with most Project Gutenberg-tm electronic works
+even without complying with the full terms of this agreement.  See
+paragraph 1.C below.  There are a lot of things you can do with Project
+Gutenberg-tm electronic works if you follow the terms of this agreement
+and help preserve free future access to Project Gutenberg-tm electronic
+works.  See paragraph 1.E below.
+
+1.C.  The Project Gutenberg Literary Archive Foundation ("the Foundation"
+or PGLAF), owns a compilation copyright in the collection of Project
+Gutenberg-tm electronic works.  Nearly all the individual works in the
+collection are in the public domain in the United States.  If an
+individual work is in the public domain in the United States and you are
+located in the United States, we do not claim a right to prevent you from
+copying, distributing, performing, displaying or creating derivative
+works based on the work as long as all references to Project Gutenberg
+are removed.  Of course, we hope that you will support the Project
+Gutenberg-tm mission of promoting free access to electronic works by
+freely sharing Project Gutenberg-tm works in compliance with the terms of
+this agreement for keeping the Project Gutenberg-tm name associated with
+the work.  You can easily comply with the terms of this agreement by
+keeping this work in the same format with its attached full Project
+Gutenberg-tm License when you share it without charge with others.
+
+1.D.  The copyright laws of the place where you are located also govern
+what you can do with this work.  Copyright laws in most countries are in
+a constant state of change.  If you are outside the United States, check
+the laws of your country in addition to the terms of this agreement
+before downloading, copying, displaying, performing, distributing or
+creating derivative works based on this work or any other Project
+Gutenberg-tm work.  The Foundation makes no representations concerning
+the copyright status of any work in any country outside the United
+States.
+
+1.E.  Unless you have removed all references to Project Gutenberg:
+
+1.E.1.  The following sentence, with active links to, or other immediate
+access to, the full Project Gutenberg-tm License must appear prominently
+whenever any copy of a Project Gutenberg-tm work (any work on which the
+phrase "Project Gutenberg" appears, or with which the phrase "Project
+Gutenberg" is associated) is accessed, displayed, performed, viewed,
+copied or distributed:
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+1.E.2.  If an individual Project Gutenberg-tm electronic work is derived
+from the public domain (does not contain a notice indicating that it is
+posted with permission of the copyright holder), the work can be copied
+and distributed to anyone in the United States without paying any fees
+or charges.  If you are redistributing or providing access to a work
+with the phrase "Project Gutenberg" associated with or appearing on the
+work, you must comply either with the requirements of paragraphs 1.E.1
+through 1.E.7 or obtain permission for the use of the work and the
+Project Gutenberg-tm trademark as set forth in paragraphs 1.E.8 or
+1.E.9.
+
+1.E.3.  If an individual Project Gutenberg-tm electronic work is posted
+with the permission of the copyright holder, your use and distribution
+must comply with both paragraphs 1.E.1 through 1.E.7 and any additional
+terms imposed by the copyright holder.  Additional terms will be linked
+to the Project Gutenberg-tm License for all works posted with the
+permission of the copyright holder found at the beginning of this work.
+
+1.E.4.  Do not unlink or detach or remove the full Project Gutenberg-tm
+License terms from this work, or any files containing a part of this
+work or any other work associated with Project Gutenberg-tm.
+
+1.E.5.  Do not copy, display, perform, distribute or redistribute this
+electronic work, or any part of this electronic work, without
+prominently displaying the sentence set forth in paragraph 1.E.1 with
+active links or immediate access to the full terms of the Project
+Gutenberg-tm License.
+
+1.E.6.  You may convert to and distribute this work in any binary,
+compressed, marked up, nonproprietary or proprietary form, including any
+word processing or hypertext form.  However, if you provide access to or
+distribute copies of a Project Gutenberg-tm work in a format other than
+"Plain Vanilla ASCII" or other format used in the official version
+posted on the official Project Gutenberg-tm web site (www.gutenberg.org),
+you must, at no additional cost, fee or expense to the user, provide a
+copy, a means of exporting a copy, or a means of obtaining a copy upon
+request, of the work in its original "Plain Vanilla ASCII" or other
+form.  Any alternate format must include the full Project Gutenberg-tm
+License as specified in paragraph 1.E.1.
+
+1.E.7.  Do not charge a fee for access to, viewing, displaying,
+performing, copying or distributing any Project Gutenberg-tm works
+unless you comply with paragraph 1.E.8 or 1.E.9.
+
+1.E.8.  You may charge a reasonable fee for copies of or providing
+access to or distributing Project Gutenberg-tm electronic works provided
+that
+
+- You pay a royalty fee of 20% of the gross profits you derive from
+     the use of Project Gutenberg-tm works calculated using the method
+     you already use to calculate your applicable taxes.  The fee is
+     owed to the owner of the Project Gutenberg-tm trademark, but he
+     has agreed to donate royalties under this paragraph to the
+     Project Gutenberg Literary Archive Foundation.  Royalty payments
+     must be paid within 60 days following each date on which you
+     prepare (or are legally required to prepare) your periodic tax
+     returns.  Royalty payments should be clearly marked as such and
+     sent to the Project Gutenberg Literary Archive Foundation at the
+     address specified in Section 4, "Information about donations to
+     the Project Gutenberg Literary Archive Foundation."
+
+- You provide a full refund of any money paid by a user who notifies
+     you in writing (or by e-mail) within 30 days of receipt that s/he
+     does not agree to the terms of the full Project Gutenberg-tm
+     License.  You must require such a user to return or
+     destroy all copies of the works possessed in a physical medium
+     and discontinue all use of and all access to other copies of
+     Project Gutenberg-tm works.
+
+- You provide, in accordance with paragraph 1.F.3, a full refund of any
+     money paid for a work or a replacement copy, if a defect in the
+     electronic work is discovered and reported to you within 90 days
+     of receipt of the work.
+
+- You comply with all other terms of this agreement for free
+     distribution of Project Gutenberg-tm works.
+
+1.E.9.  If you wish to charge a fee or distribute a Project Gutenberg-tm
+electronic work or group of works on different terms than are set
+forth in this agreement, you must obtain permission in writing from
+both the Project Gutenberg Literary Archive Foundation and Michael
+Hart, the owner of the Project Gutenberg-tm trademark.  Contact the
+Foundation as set forth in Section 3 below.
+
+1.F.
+
+1.F.1.  Project Gutenberg volunteers and employees expend considerable
+effort to identify, do copyright research on, transcribe and proofread
+public domain works in creating the Project Gutenberg-tm
+collection.  Despite these efforts, Project Gutenberg-tm electronic
+works, and the medium on which they may be stored, may contain
+"Defects," such as, but not limited to, incomplete, inaccurate or
+corrupt data, transcription errors, a copyright or other intellectual
+property infringement, a defective or damaged disk or other medium, a
+computer virus, or computer codes that damage or cannot be read by
+your equipment.
+
+1.F.2.  LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except for the "Right
+of Replacement or Refund" described in paragraph 1.F.3, the Project
+Gutenberg Literary Archive Foundation, the owner of the Project
+Gutenberg-tm trademark, and any other party distributing a Project
+Gutenberg-tm electronic work under this agreement, disclaim all
+liability to you for damages, costs and expenses, including legal
+fees.  YOU AGREE THAT YOU HAVE NO REMEDIES FOR NEGLIGENCE, STRICT
+LIABILITY, BREACH OF WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
+PROVIDED IN PARAGRAPH 1.F.3.  YOU AGREE THAT THE FOUNDATION, THE
+TRADEMARK OWNER, AND ANY DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE
+LIABLE TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR
+INCIDENTAL DAMAGES EVEN IF YOU GIVE NOTICE OF THE POSSIBILITY OF SUCH
+DAMAGE.
+
+1.F.3.  LIMITED RIGHT OF REPLACEMENT OR REFUND - If you discover a
+defect in this electronic work within 90 days of receiving it, you can
+receive a refund of the money (if any) you paid for it by sending a
+written explanation to the person you received the work from.  If you
+received the work on a physical medium, you must return the medium with
+your written explanation.  The person or entity that provided you with
+the defective work may elect to provide a replacement copy in lieu of a
+refund.  If you received the work electronically, the person or entity
+providing it to you may choose to give you a second opportunity to
+receive the work electronically in lieu of a refund.  If the second copy
+is also defective, you may demand a refund in writing without further
+opportunities to fix the problem.
+
+1.F.4.  Except for the limited right of replacement or refund set forth
+in paragraph 1.F.3, this work is provided to you 'AS-IS' WITH NO OTHER
+WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
+WARRANTIES OF MERCHANTIBILITY OR FITNESS FOR ANY PURPOSE.
+
+1.F.5.  Some states do not allow disclaimers of certain implied
+warranties or the exclusion or limitation of certain types of damages.
+If any disclaimer or limitation set forth in this agreement violates the
+law of the state applicable to this agreement, the agreement shall be
+interpreted to make the maximum disclaimer or limitation permitted by
+the applicable state law.  The invalidity or unenforceability of any
+provision of this agreement shall not void the remaining provisions.
+
+1.F.6.  INDEMNITY - You agree to indemnify and hold the Foundation, the
+trademark owner, any agent or employee of the Foundation, anyone
+providing copies of Project Gutenberg-tm electronic works in accordance
+with this agreement, and any volunteers associated with the production,
+promotion and distribution of Project Gutenberg-tm electronic works,
+harmless from all liability, costs and expenses, including legal fees,
+that arise directly or indirectly from any of the following which you do
+or cause to occur: (a) distribution of this or any Project Gutenberg-tm
+work, (b) alteration, modification, or additions or deletions to any
+Project Gutenberg-tm work, and (c) any Defect you cause.
+
+
+Section  2.  Information about the Mission of Project Gutenberg-tm
+
+Project Gutenberg-tm is synonymous with the free distribution of
+electronic works in formats readable by the widest variety of computers
+including obsolete, old, middle-aged and new computers.  It exists
+because of the efforts of hundreds of volunteers and donations from
+people in all walks of life.
+
+Volunteers and financial support to provide volunteers with the
+assistance they need are critical to reaching Project Gutenberg-tm's
+goals and ensuring that the Project Gutenberg-tm collection will
+remain freely available for generations to come.  In 2001, the Project
+Gutenberg Literary Archive Foundation was created to provide a secure
+and permanent future for Project Gutenberg-tm and future generations.
+To learn more about the Project Gutenberg Literary Archive Foundation
+and how your efforts and donations can help, see Sections 3 and 4
+and the Foundation web page at https://www.pglaf.org.
+
+
+Section 3.  Information about the Project Gutenberg Literary Archive
+Foundation
+
+The Project Gutenberg Literary Archive Foundation is a non profit
+501(c)(3) educational corporation organized under the laws of the
+state of Mississippi and granted tax exempt status by the Internal
+Revenue Service.  The Foundation's EIN or federal tax identification
+number is 64-6221541.  Its 501(c)(3) letter is posted at
+https://pglaf.org/fundraising.  Contributions to the Project Gutenberg
+Literary Archive Foundation are tax deductible to the full extent
+permitted by U.S. federal laws and your state's laws.
+
+The Foundation's principal office is located at 4557 Melan Dr. S.
+Fairbanks, AK, 99712., but its volunteers and employees are scattered
+throughout numerous locations.  Its business office is located at
+809 North 1500 West, Salt Lake City, UT 84116, (801) 596-1887, email
+business@pglaf.org.  Email contact links and up to date contact
+information can be found at the Foundation's web site and official
+page at https://pglaf.org
+
+For additional contact information:
+     Dr. Gregory B. Newby
+     Chief Executive and Director
+     gbnewby@pglaf.org
+
+
+Section 4.  Information about Donations to the Project Gutenberg
+Literary Archive Foundation
+
+Project Gutenberg-tm depends upon and cannot survive without wide
+spread public support and donations to carry out its mission of
+increasing the number of public domain and licensed works that can be
+freely distributed in machine readable form accessible by the widest
+array of equipment including outdated equipment.  Many small donations
+($1 to $5,000) are particularly important to maintaining tax exempt
+status with the IRS.
+
+The Foundation is committed to complying with the laws regulating
+charities and charitable donations in all 50 states of the United
+States.  Compliance requirements are not uniform and it takes a
+considerable effort, much paperwork and many fees to meet and keep up
+with these requirements.  We do not solicit donations in locations
+where we have not received written confirmation of compliance.  To
+SEND DONATIONS or determine the status of compliance for any
+particular state visit https://pglaf.org
+
+While we cannot and do not solicit contributions from states where we
+have not met the solicitation requirements, we know of no prohibition
+against accepting unsolicited donations from donors in such states who
+approach us with offers to donate.
+
+International donations are gratefully accepted, but we cannot make
+any statements concerning tax treatment of donations received from
+outside the United States.  U.S. laws alone swamp our small staff.
+
+Please check the Project Gutenberg Web pages for current donation
+methods and addresses.  Donations are accepted in a number of other
+ways including including checks, online payments and credit card
+donations.  To donate, please visit: https://pglaf.org/donate
+
+
+Section 5.  General Information About Project Gutenberg-tm electronic
+works.
+
+Professor Michael S. Hart was the originator of the Project Gutenberg-tm
+concept of a library of electronic works that could be freely shared
+with anyone.  For thirty years, he produced and distributed Project
+Gutenberg-tm eBooks with only a loose network of volunteer support.
+
+
+Project Gutenberg-tm eBooks are often created from several printed
+editions, all of which are confirmed as Public Domain in the U.S.
+unless a copyright notice is included.  Thus, we do not necessarily
+keep eBooks in compliance with any particular paper edition.
+
+
+Most people start at our Web site which has the main PG search facility:
+
+     https://www.gutenberg.org
+
+This Web site includes information about Project Gutenberg-tm,
+including how to make donations to the Project Gutenberg Literary
+Archive Foundation, how to help produce our new eBooks, and how to
+subscribe to our email newsletter to hear about new eBooks.
+
+
+</pre>
+
+</body>
+</html>
diff --git a/38655-h/images/logo.jpg b/38655-h/images/logo.jpg
new file mode 100644
index 0000000..2f85ec3
--- /dev/null
+++ b/38655-h/images/logo.jpg
diff --git a/38655.txt b/38655.txt
new file mode 100644
index 0000000..0a10443
--- /dev/null
+++ b/38655.txt
@@ -0,0 +1,23663 @@
+The Project Gutenberg EBook of Principles of Political Economy, Vol. II, by
+William Roscher
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+
+Title: Principles of Political Economy, Vol. II
+
+Author: William Roscher
+
+Translator: John J. Lalor
+
+Release Date: January 23, 2012 [EBook #38655]
+
+Language: English
+
+Character set encoding: ASCII
+
+*** START OF THIS PROJECT GUTENBERG EBOOK PRINCIPLES POLITICAL ECONOMY, VOL II ***
+
+
+
+
+Produced by Frank van Drogen, Carol Brown, Gwen Adams,
+Elizabeth Oscanyan, and the Online Distributed Proofreading
+Team at https://www.pgdp.net.
+
+
+
+
+
+Transcriber's Note:  A monospaced font will display the tables in this book
+better than a variable-spaced font.
+
+
+
+
+           PRINCIPLES
+
+               OF
+
+       POLITICAL ECONOMY
+
+               BY
+
+        WILLIAM ROSCHER,
+
+  PROFESSOR OF POLITICAL ECONOMY AT THE UNIVERSITY OF LEIPZIG,
+    CORRESPONDING MEMBER OF THE INSTITUTE OF FRANCE, PRIVY
+       COUNSELLOR TO HIS MAJESTY, THE KING OF SAXONY.
+
+  FROM THE THIRTEENTH (1877) GERMAN EDITION.
+
+  WITH ADDITIONAL CHAPTERS, FURNISHED BY THE AUTHOR, FOR THIS FIRST
+  ENGLISH AND AMERICAN EDITION, ON
+
+  PAPER MONEY, INTERNATIONAL TRADE, AND THE
+        PROTECTIVE SYSTEM;
+
+        AND A PRELIMINARY
+
+  ESSAY ON THE HISTORICAL METHOD IN POLITICAL ECONOMY
+
+        (From the French)
+
+         BY L. WOLOWSKI,
+
+     THE WHOLE TRANSLATED BY
+
+       JOHN J. LALOR, A. M.
+
+            VOL. II.
+
+  [Illustration: Printer's Logo]
+
+           NEW YORK:
+        HENRY HOLT & CO.
+             1878.
+
+
+  Entered according to Act of Congress, in the year eighteen hundred
+  and seventy-eight,
+
+       BY CALLAGHAN & CO.,
+  In the office of the Librarian of Congress, at Washington, D. C.
+
+  DAVID ATWOOD, STEREOTYPER AND PRINTER, MADISON, WIS.
+
+
+
+
+              TO
+
+     WILLIAM H. GAYLORD, ESQ.,
+
+     _COUNSELOR AT LAW_,
+       OF CLEVELAND, OHIO,
+
+  TO WHOSE BROTHERLY CARE IT IS LARGELY DUE THAT I LIVED TO
+        TRANSLATE THEM,
+
+         THESE VOLUMES
+
+  ARE AFFECTIONATELY INSCRIBED.
+
+
+
+
+BOOK III.
+
+DISTRIBUTION OF GOODS.
+
+
+
+
+CHAPTER 1.
+
+INCOME IN GENERAL.
+
+
+SECTION CXLIV.
+
+RECEIPTS.--INCOME.--PRODUCE.
+
+The idea covered by the word receipts (_Einnahme_) embraces all the new
+additions successively made to one's resources within a given period of
+time.[144-1] Income, on the other hand, embraces only such receipts as
+are the results of economic activity. (See Secs. 2, 11.) Produce (_Ertrag_,
+_produit_) is income, but not from the point of view of the person or
+_subject_ engaged in a business of any kind, but from that of the
+business itself, or of the _object_ with which the business is
+concerned, and on which it, so to speak, acts.
+
+Income is made up of products, the results of labor and of the
+employment and use of resources. These products, the producer may either
+consume himself or exchange against other products, to satisfy a more
+urgent want.[144-2] Hence, spite of the frequency with which we hear
+such expressions as these: "the laborer eats the bread of his employer;"
+"the capitalist lives by the sweat of the brow of labor;" or, again, a
+manufacturer or business man "lives from the income of his
+customers,"[144-3] they are entirely unwarranted. No man who manages his
+own affairs well, or those of a household, lives on the capital or
+income of another man; but every one lives on his own income, by the
+things he has himself produced; although with every further development
+of the division of labor, it becomes rarer that any one puts the
+finishing stroke to his own products, and can satisfy himself by their
+immediate consumption alone. Hence we should call nothing diverted or
+derived income except that which has been gratuitously obtained from
+another.[144-4]
+
+     [Footnote 144-1: Including of course, gifts, inheritances,
+     lottery prizes, etc.]
+
+     [Footnote 144-2: Thus the original income of the peasant
+     consists in his corn, of the miller in his flour, of the
+     baker in his bread, of the shoemaker in his shoes. The money
+     which circulates among all these and the purchaser, is only
+     the means of exchanging that part of their products which
+     they cannot themselves use, for other goods. Money, on the
+     other hand, was the original income of the producers of the
+     gold or silver it contains. Compare _Mirabeau_, Philosophie
+     rurale, 1763, ch. 3. _Adam Smith_, II, ch. 2. But
+     especially, see _J. B. Say_, Traite II, ch. 1, 5; and
+     _Sismondi_, N. P., I, 90, 376, in which it is correctly
+     said, that the quality which constitutes anything capital or
+     income does not inhere in the thing itself, but depends on
+     the person. Compare, however, I, 148; _Hermann_, Staatsw.
+     Untersuch. 297 ff., 33 seq.]
+
+     [Footnote 144-3: A fundamental thought in _St. Chamans_, Du
+     Systeme d'Impot, 1820. Nouvel Essai sur la Richesse des
+     Nations, 1824.]
+
+     [Footnote 144-4: Thus, for instance, the support given by
+     the head of a family to the members thereof; also gifts,
+     alms, thefts. Even _A. L. Schloezer_, St. A., II, 487, will
+     allow that no one "eats the bread of another," but the
+     person who has received it from the latter by way of favor
+     and for nothing. In the case of a rented house, there is
+     only an exchange of objects of income. The person to whom it
+     is rented gives up a portion of his, and the renting party
+     the use of his house. Similarly, in the case of personal
+     services. Writers who maintain that only certain kinds of
+     useful labor are productive, must of course extend the
+     limits of diverted income much farther. See _Lotz_,
+     Handbuch, III, Sec. 133; _Rau_, Lehrbuch, I, Secs. 248, 251.
+     _Cantillon_ thinks that if no landowner spent more than his
+     income, it would be scarcely possible for any one else to
+     grow rich. (Nature du Commerce, 75.) According to _Stein_,
+     Lehrbuch, 347, every one gets his income from the income of
+     other people!]
+
+
+SECTION CXLV.
+
+INCOME.--GROSS, FREE AND NET.
+
+In all _income_, we may distinguish a _gross_ amount, a _net_ amount and
+a _free_ amount.[145-1] The gross income of a year, for instance,
+consists of all the goods which have been newly produced within that
+time. The net[145-2] income is that portion of the former which remains
+after deducting the cost of production (Sec. 106), and which may therefore
+be consumed without diminishing the original resources. Only the new
+values incorporated in the new commodities make up the net income.
+Evidently, a great portion of what is considered in one business the
+cost of production is net income in a great many others; as for
+instance, what the person engaged in one enterprise in production has
+paid out in wages and interest on capital. By means of this outlay, a
+portion of his circulating capital is drawn by others as income, and, on
+the other hand, a portion of their original income is turned into a
+portion of his circulating capital.[145-3] _Free_ income, I call that
+portion of net income which remains available to the producer after his
+indispensable wants have been satisfied.
+
+An accurate kind of book-keeping which keeps these three elements of
+income separate is more generally practicable as civilization advances.
+We might call it the _economic balance_. Where commerce is very thriving
+it is even customary to provide by law that those classes who need it
+especially should have this species of book-keeping. People in a lower
+stage of cultivation, with their poetical nature, are unfriendly to such
+calculations.[145-4] [145-5] And where natural-economy (_Naturalwirthschaft_)
+or barter prevails, a book-keeping of this kind of any accuracy is scarcely
+practicable. The ratio which net income bears to gross income is a very
+important element to enable us to judge of the advantageousness of any
+method of production. If every producer should succeed in consequence of
+keeping his books in this manner, in determining exactly the cost to him of
+each of his products, this would be an economic progress similar to that of
+general spread of good chemical knowledge in the arts. On the amount of
+_free_ income, on the other hand, depends all the higher enjoyment of life,
+all rational beneficence, and the progressive enrichment of mankind.[145-6]
+
+     [Footnote 145-1: Similarly in _Sismondi_, N. P., II, 330,
+     and _Rau_, Lehrbuch, I, Sec. 71, a.]
+
+     [Footnote 145-2: Called by _Hermann_, loc. cit., simply
+     income.]
+
+     [Footnote 145-3: This truth _J. B. Say_ has exaggerated to
+     the extent of claiming that gross and net income are one and
+     the same so far as entire nations are concerned. (Traite,
+     II, ch. 5; Cours pratique, III, 14; IV, 74.) But the gross
+     profit of the entire production of any one year is much
+     greater than the simultaneous net income of all the
+     individuals engaged in it. This is accounted for by the fact
+     that in such production an amount of circulating capital is
+     invested which was saved from the net profit of previous
+     economic times. Compare _Storch_, Nationaleinkommen, 90 ff.
+     _Kermann_, loc. cit., 323 ff.]
+
+     [Footnote 145-4: In the East, a valuation by one's self of
+     his property is considered a guilty kind of pride, usually
+     punished by the loss of one's possessions. (_Burckhardt_,
+     Travels in Arabia, I, 72 ff.) See _Samuel_, 24, on the
+     census made by David. The Egyptians, however, as may be
+     inferred from their monuments, must have very early and very
+     extensively felt the want of some kind of book-keeping such
+     as we have mentioned. A very accurate sort of book-keeping
+     among the more highly cultured Romans, with a daily
+     memorandum and a monthly book with entries from the former
+     (_adversaria-tabula expensi et accepti_). Compare _Cicero_,
+     pro Roscio, com. 2, 3; pro Cluent, 30; _Verr._, II, 1, 23,
+     36. The Latin _putare_, from _putus_, pure, means: to make
+     an account clear, and therefore corresponds to the American
+     provincialism, "I reckon," i. e., I believe; and is a
+     remarkable proof of a rigid method of keeping accounts. The
+     Italian, or so-called double-entry method of book-keeping,
+     which gives the most accurate information on the profit from
+     every separate branch of business, became usual among the
+     nations of modern Europe whose civilization was the first to
+     ripen, about the end of the fifteenth century. Its invention
+     is ascribed to the monk Luca Paciolo di Borgo S. Sepolcro.
+
+     In England, this kind of book-keeping is very gradually
+     coming into use even among farmers, while _Simond_, Voyage
+     en Angleterre, 2 ed., II, 64, _Dunoyer_, Liberte du Travail,
+     VIII, 5, say, "it would in France be considered as
+     ridiculous as the book-keeping of an apple vendor." In
+     Germany, there have been for some time past, manufactories
+     of commercial books. Besides, the remarkable difference
+     brought out by the income tax in England between the exact
+     statements made by large manufacturers, etc., and by those
+     engaged in industry on a medium or small scale, bears
+     evidence of the better way in which the former keep their
+     accounts, the cause and effect of their better business in
+     general. Compare _Knies_, in the Tuebing. Zeitschr., 1854,
+     513. On the best mode of determining income, see _Cazaux_,
+     Elements d'Economie publique et privee, Livre, II. It is
+     especially necessary to keep an account of the increase or
+     diminution, even when accidental, of the value of the fixed
+     capital employed.]
+
+     [Footnote 145-5: The Code de Commerce, I, art. 8, requires
+     that every merchant should keep a journal, paged and
+     approved by the authorities, showing the receipts and
+     disbursements of each day, on whatever account, and also the
+     monthly expenditures of his family. Besides, he is required
+     to make a yearly inventory of his debits and credits,
+     subscribe to it and preserve it. That such books were
+     excellent judicial evidence may be shown by Italian statutes
+     of the fourteenth century. (_Martens_, Ursprung des
+     Wechschrechts, 23.) Those of Germany even in 1449.
+     (_Hirsch_, Danziger Handelsgeschichte, 232.)]
+
+     [Footnote 145-6: Importance of the so-called "transferring
+     to credit," where a business man considers his business as
+     an independent entity and as distinct from himself.]
+
+
+SECTION CXLVI.
+
+NATIONAL INCOME.--ITS STATISTICAL IMPORTANCE.
+
+Among the most important[146-1] but also the most difficult objects of
+statistics, that book-keeping of nations, is national income. In
+estimating it, we may take our starting point from the goods which are
+elements of income, or from the persons who receive them as
+income.[146-2]
+
+In the former case the gross national income consists:
+
+A. Of the raw material newly obtained in the country.
+
+B. Of imports from foreign countries, including that which is secured by
+piracy, as war-booty, contributions, etc.
+
+C. The increase of values which industry[146-3] and commerce add to the
+first two classes up to the time of their final consumption.
+
+D. Services in the narrower sense and the produce (_Nutzungen_) of
+capital in use.
+
+All these several elements, estimated at their average price in money,
+which supposes that all purchases, especially those under the head D,
+are made voluntarily[146-4] and at their natural price.
+
+To find the national net income, we must deduct the following items:
+
+A. All the material employed in production which yields no immediate
+satisfaction to any personal want.[146-5]
+
+B. The exports which pay for the imports.
+
+C. The wear and tear of productive capital and capital in use.
+
+In the second case the net national income is to be calculated from the
+following items:
+
+A. From the net income of all independent private businesses etc.[146-6]
+
+B. From the net income of the state, of municipalities, corporations and
+institutions, derived from their own resources.
+
+C. Under the former heads must be taken into the account such parts of
+property as have been immediately consumed and enjoyed.[146-7]
+
+D. Interest on debt must be added only on the side of the creditor, and
+deducted from the income of the debtor; otherwise, _error dupli_. This
+does not apply to taxes or church dues because the subjects of a good
+state and members of a good church purchase thereby things which are
+really new and of at least equal value to the outlay. Besides, in both
+instances, it is necessary to calculate the number of men who live from
+the national income, the average amount of their indispensable wants,
+and the average price in money of the same, in order to determine the
+_free_ national income by deducting the sum total of these average
+wants, estimated at this average price.[146-8] [146-9]
+
+     [Footnote 146-1: Not only to compare the happiness and power
+     of different nations with one another, but also for purposes
+     of taxation, the profitableness and innocuousness of which
+     suppose the most perfect adaptation to the income of the
+     whole people.]
+
+     [Footnote 146-2: The former, in _Rau_, Lehrbuch, I, Sec. 247;
+     the latter in _Hermann_, 308 ff. The former mode of
+     calculation gives us a means of judging of the comfort of
+     the people, their control of natural forces, etc.; the
+     second, of the relation of classes among the people. (_v.
+     Mangoldt_, Grundriss, 99. V. W. L., 316 ff.) Each member of
+     the nation produces his income only in the whole of the
+     nation's economy. Hence _Held_, Die Einkommensteuer, 1872,
+     70, 77, would, but indeed only under very abstract fictions,
+     construct private income from the national, and not _vice
+     versa_.]
+
+     [Footnote 146-3: On the average degree of this increase of
+     values in different industries, see _Chaptal_, De
+     l'Industrie francaise, II, passim. _Bolz_, Gewerbekalender
+     fuer, 1833, 111. No such scale can be lastingly valid,
+     because, for instance, almost all technic progress decreases
+     the appreciation of values through industry, and every
+     advance made by luxury raises the claims to refined quality
+     etc. See _Hildebrand_, Jahrbuecher fuer Nat-Oek., 1863, 248
+     ff.]
+
+     [Footnote 146-4: Many items in Class D evade all
+     calculation. Thus, for instance, the numberless cases of
+     personal services which are enjoyed only by the doer
+     himself; also the greater number of products
+     (_Nutzungen_=usufruct) of capital in use for the consumption
+     of the owner himself. (Latent income.) Only, it may be, in
+     the case of dwelling houses, equipages, etc., that the
+     consumption by use can be estimated in accordance with the
+     analogy of similarly rented goods.]
+
+     [Footnote 146-5: The principal materials consumed in
+     manufactures are of course not to be deducted here, because
+     the increase in their value was taken into account above.]
+
+     [Footnote 146-6: When an artist who earns $10,000 per annum
+     appears in a country, the gross national income increases in
+     a way similar to that in which it increases when a new
+     commodity is found which would have a yearly increase of
+     value equal to $10,000 over and above that of the raw
+     material. Cost of production in the case of such a virtuoso
+     is scarcely to be alluded to. Nearly his entire income, with
+     the exception of his traveling expenses, etc., is net, and
+     the greater portion of it _free_. An income tax would affect
+     his hearers after as it did before, and in his income, find
+     a completely new object. _Per contra_, see Saggi economici,
+     I, 176 f.]
+
+     [Footnote 146-7: For purposes of taxation, where a relative
+     valuation is more the question than an absolute one, it
+     would be sufficient to assume that every household consumed
+     clothing, utensils, etc., in proportion to the rest of their
+     income. Hence, these items might, unhesitatingly, be omitted
+     altogether.]
+
+     [Footnote 146-8: Mathematically demonstrated by _Fuoco_,
+     Saggi economici, II, 102 ff.]
+
+     [Footnote 146-9: The gross income of British Europe is
+     estimated by _Pebrer_, Histoire financiere et statistique
+     generale de l'Empire Br., 1834, II, 90, at L514,823,059,
+     viz.: agriculture, L246,600,000; mining, 21,400,000;
+     manufactures, after deduction made of the raw material,
+     L148,050,000; internal and coast trade, L51,975,060; foreign
+     commerce and navigation, L34,398,059; banking, L4,500,000;
+     interest from foreign countries, L4,500,000. By _Moreau de
+     Jonnes_, Statist de la Gr. Br., 1837, I, 312, it is
+     estimated at 18,000,000,000 francs, from which, however, the
+     raw material used in industry is not deducted. The net
+     income of Great Britain was estimated by Pitt, in 1799, at
+     L135,000,000, of which L25,000,000 were received by
+     landowners for rent, L25,000,000 by farmers, L5,000,000 were
+     tithes, L3,000,000 from forests, canals, and mines,
+     L6,000,000 from houses, L15,000,000 from state funds,
+     L12,000,000 from foreign commerce, L28,000,000 from inland
+     commerce and manufactures, L3,000,000 from fine arts,
+     L80,000,000 from Scotland, L5,000,000 from foreign
+     countries. (_Gentz_, Histor. Journ., 1799, I, 183 ff.)
+     _Lowe_, England in its present Situation, 1822, p. 246,
+     speaks of 255,000,000. About 1860, the incomes subject to
+     taxation alone, that is, all above L100, amounted to
+     335,000,000. The remainder was certainly worth one-half of
+     this. (Statist. Journ., 1864, 121.) _Baxter_, in 1867,
+     assumed it to be L825,000,000. Compare _L. Levi_, on
+     Taxation, 6.
+
+     In France, about forty years ago, according to Chaptal,
+     Doudeauville, Balbi and others, about 6,500,000,000 francs
+     gross national income could be counted on. _Schnitzler_
+     speaks of 7,000,000,000 francs (Creation de la Richesse en
+     France, 1842, I, 392), after deduction made of the raw
+     material of manufacture. According to _Wolowski_,
+     Statistique de la Fr., 1847, it was more than 12,000,000,000
+     francs. _M. Chevalier_, Revue des deux Mondes, March 15,
+     1848, has it 10,000,000,000 at most. In these four
+     estimates, only material products are taken into account.
+     _Ch. Dupin_ thinks the income per capita was, in 1730, = 108
+     francs; in 1780, = 169; in 1830, = 269. _Cazeaux_, Elements,
+     163, estimated the net national income, in 1825, at
+     5,000,000,000 francs; _Cochut_, in 1861, at 16,000,000,000.
+     (Revue des deux Mondes, XXXVII, 703.)
+
+     In Spain, _Borrego_, Nationalreichthum, etc. Spaniens, 1834,
+     33, estimated the income from agriculture at 2,284,000,000
+     francs; from industry, etc., 361,000,000; commerce,
+     124,000,000; from houses, 186,000,000; canals, streets etc.,
+     8,500,000; personal services, 75,000,000; money in
+     circulation (probably loaned capital), 85,000,000.
+
+     In the United States, in 1840, the national income was
+     estimated at over $1,063,000,000; from agriculture, over
+     $654,000,000; from manufactures, nearly $240,000,000;
+     commerce, almost $80,000,000; mining, over $42,000,000; from
+     lumber (_Waeldern_), almost $17,000,000; and from the
+     fisheries, almost $12,000,000. The per capita amount of
+     income was $62. It was largest in Rhode Island--$110; in
+     Massachusetts it was $103; in Louisiana, $99; and in Iowa,
+     smallest, $27; in Michigan, it was $33. Compare _Tucker_,
+     Progress of the United States, 195 ff. The census of 1860
+     assumes the national wealth, slaves not included, at
+     $14,183,000,000, that is $451 per capita, with a per capita
+     annual income of $112. According to _Czoernig_, the gross
+     income of Austria, from agriculture, the chase and
+     fisheries, in 1861, was 2,119,000,000 florins; from mining,
+     41,000,000; from the industries, 1,200,000,000. In Prussia,
+     the net national income, not including the revenue from
+     state property, nor the income of the royal household,
+     seems, from the returns of the income and _class_ tax, to
+     have been about 2,458,000,000 thalers, in 1874. _Engel_,
+     Preuss. Statist. Ztschr., 1875, 133. The majority of the
+     above estimates are obviously unreliable.]
+
+
+SECTION CXLVII.
+
+NATIONAL INCOME.--ITS STATISTICAL IMPORTANCE.
+[CONTINUED.]
+
+The question frequently discussed, whether it is more advantageous to
+increase the gross income or the net income[147-1] of a people, may be
+readily answered with the assistance of our tripartite division. Since
+economic production has no other object than the satisfaction of human
+wants, the mere increase of the gross income of a people is a matter of
+indifference. An increase of the net income puts a people in a condition
+to increase either their numbers or their enjoyments. (See Secs. 163 and
+239.) The most desirable condition is where both these results are
+produced. It is fortunate for a people when the _free_ income of the
+nation increases by reason of the absolute or relative decrease of the
+cost of production, which adds nothing to enjoyment. But it is
+politically and morally to be lamented when it increases at the expense
+of the satisfaction of man's necessary wants, especially if the majority
+of the people deny themselves in this respect to produce that end. Sir
+Thomas More called the sheep of his time, to make place for which so
+many farm houses were razed to the ground, ravenous beasts, which
+devoured men and laid waste city and country.[147-2]
+
+     [Footnote 147-1: The greater number of writers, at bottom,
+     understand by this question only whether greater efforts
+     should be made to increase the wages of the lower classes or
+     the rent and rate of interest on capital paid to the higher.
+     (_Schmoller_, in the Tueb. Zeitschrift, 1863, 22.)]
+
+     [Footnote 147-2: The difference between gross and net income
+     was introduced into the science principally by the
+     Physiocrates. _Vauban_ (1707) had no conception of it, and
+     thirty years later a French minister, in his instructions
+     concerning the levy of the _vingtiemes_, dimly seeing that
+     the aggregate amount of the harvest was not clear gain,
+     ordered, to obtain the latter, that the cost of reaping and
+     threshing should be deducted. (_Dupont_, Correspondence of
+     _J. B. Say_, 404, ed. Daire.) By _produit net_, _Quesnay_
+     means the excess of original production over its cost,
+     considered from the personal point of view of the individual
+     landowner. This excess, it is claimed, can alone increase
+     the national wealth and alone support the "steril" class.
+
+     The political and military bearing of this very clearly
+     recognized. (102 ff., ed Daire.) Hence _Quesnay_, favors it
+     in every way; by large farming instead of small, by stock
+     raising on a large scale, supplanting home labor by cheaper
+     foreign labor, by machinery and the employment of manual
+     labor, etc.; 91 ff., 200 ff., 274 ff. The elder _Mirabeau_
+     teaches even that the goodness of a government or of a
+     constitution, and even national morality may be inferred
+     from the amount of the _produit net_. (Ph. rurale, ch. 5.)
+     _Stewart_, Principles, I, ch. 20. _Adam Smith_ gives greater
+     prominence to the gross income, and grades the principal
+     branches of national labor according as they increase the
+     gross product of the nation's economy. (II, chs. 1, 5.)
+     Similarly, _J. B. Say_, Traite, ch. 8, Sec. 3; _Lauderdale_,
+     Inquiry, 142.
+
+     _Ricardo_ thoroughly reacts against this view, and considers
+     it a matter of indifference whether a net product (interest
+     on capital and rent) of a given amount be obtained by the
+     labor of five or seven million other men, so long as only
+     five million can live on it. (Principles, ch. 26.) Similarly
+     _Ganilh_, Systemes, I, 218 ff.; Theorie, II, 96.
+     Controverted by _Malthus_, Principles, II, Sec. 6. _Buquoy_,
+     Theorie der Nat. Wirthsch., 1815, 310 ff. _Sismondi_ has
+     ridiculed this predilection for the net product which in
+     _Ricardo_ corresponds with what the Germans call free
+     product (_freien Ertrage_), and which, contrary to Ricardo's
+     own opinion, he calls Ricardo's ideal, saying that according
+     to him, nothing more was to be desired but that "the king
+     should remain alone on the island and, by turning a crank
+     forever, do all the work of England through the
+     instrumentality of automata." (N. P., II, 330 ff.) An entire
+     people should value only gross product. (I, 183.) In his
+     Etudes, Essai, II: Du Revenu Social, _Sismondi_
+     distinguishes as elements of the gross national income: a,
+     pure capital, the return of outlay; b, that which is at once
+     both capital and income, and serves as family support
+     (capital as a necessarily remaining supply, income as the
+     product of the preceding year); c, net income, the excess of
+     production over consumption.
+
+     The Socialists of our day would prefer to see the whole net
+     income of a people employed in the satisfaction of the
+     necessary wants of an ever increasing population. By this
+     procedure, as a natural consequence, we should witness first
+     the curtailing of the taxing power, of the funds for the
+     satisfaction of the more refined wants and of the saving of
+     capital, nor would it be long before even the existing
+     generation would experience the bitterness of this "living
+     from hand to mouth." After a time, even the possibility of
+     progress and even of mere increase of population would
+     cease.
+
+     _Hermann_, Staatsw. Untersuch., 297 ff., has better than
+     almost any one else developed the theory of income, and he
+     lays most stress on the satisfaction of wants as the chief
+     aim of public economy. _Kroencke_, Das Steuerwesen, 1804, 381
+     ff.; Grundsaetze einer gerechten Besteuerung, 1819, 93 f.,
+     may be considered the predecessor who prepared the way for
+     him. Compare the profound work of _Bernhardi_, Versuch einer
+     Kritik der Gruende die fuer grosses und kleines Grundeigenthum
+     angefuehrt werden, St. Petersburg, 1848. Many controversies
+     on this subject may be closed by a more accurate
+     understanding as to terms. Thus, for instance, when _Rau_,
+     Handbuch, embraces in the cost of production the necessary
+     maintenance of material-workmen, and of those engaged in the
+     labor of commerce; or when _Jacob_, Staatswissenschaft, Sec.
+     496, and _Storch_, Einkommen, 116 ff., even the necessary
+     support of every class useful to society, their valuation of
+     the gross national income is in only apparent conflict with
+     our doctrine on the subject.]
+
+
+SECTION CXLVIII.
+
+THE TWO PHASES OF INCOME.
+
+In every income which has anything to do with other incomes, it is
+necessary to distinguish its immediately productive side, and its profit
+or acquisition side. It is necessary, in the first place, that all the
+products made by private parties should, so to speak, be put into the
+common treasury of the national economy, and that each should thence
+draw his own private revenue. Justice requires that there should be a
+perfect correlation between the two; that each should enjoy precisely
+the quota of the national income to the production of which his person
+or his property contributed. A just appreciation of the relative
+productive power of the divers branches of labor constitutes one of the
+chief bulwarks against the inroads of destructive socialistic theories.
+The person who calls a good doctor or a good judge unproductive should,
+to be consistent, call those who by their greater intelligence are
+fitted to superintend agricultural and industrial enterprises
+unproductive, also, as is done by the coarser socialists with their
+apotheosis of mere manual labor. Unfortunately, such a settlement as is
+above contemplated among the different factors of production, whose
+owners are desirous to divide the common product among them, is possible
+only where the factors of production are either of the same kind, or can
+be reduced to a common denominator.[148-1] But if justice pure and
+simple were meted out, no man could subsist. Love or charity must
+supplement justice in order to assist those (and especially such as
+without any fault of theirs) who are not able to produce anything, or
+enough to supply those wants, for instance, children and the poor.
+
+As the net national income, following the three great factors of all
+economic production, is divided into three great branches, rent, wages
+and interest on capital, the net income from any private business may be
+reduced to one or more of these branches.[148-2] The three great
+branches of income may be considered with advantage from a great many
+different points of view. We may inquire in the case of each of them:
+concerning its absolute magnitude, its relation to the aggregate
+national income, to the magnitude of the factor of production, of which
+it constitutes the remuneration; by what number of men it is shared, and
+what number of wants it satisfies.[148-3] Lastly, the difference between
+the amount stipulated for, and the original amount of both rent and
+wages, as well as the interest of capital, is of special importance. The
+former consists in the price paid by the borrower for the use of the
+factor of production to the owner; the latter in the immediate products
+which the employment of the same productive power brings on one's own
+account. Evidently, the original amount is, in the long run, the chief
+element in the determination of the stipulated amount. While the former
+depends more on the deeper and more durably effective elements of price,
+especially the cost of production, the value in use and the paying
+capacity of purchasers; the latter is conditioned more by the
+superficial variations of supply and demand, and even by custom. For our
+purposes, the former is by far the more important, but, at the same
+time, by far the more difficult to perceive.
+
+     [Footnote 148-1: This is possible between labor and capital,
+     at least in so far as a comparison can be instituted between
+     the sacrifice of human rest there is in labor and the
+     sacrifice of enjoyment in the building up of capital. But
+     the person who introduces an entirely unimproved piece of
+     land into the service of production, stands to the laborer
+     as well as to the capitalist in a relation which is entirely
+     incomparable with any other. (See Sec. 156.) The doctrine of
+     former agriculturists, that one-half of the harvest was to
+     be ascribed to the soil and the other to the manure, would
+     not suffice here, even if it were correct. Compare _Fraas_,
+     Gesch. der Landbau- und Forstwissenschaft, 257. But in the
+     production of a calf, the cooperation of a bull and cow are
+     necessary. Yet no one is in condition to determine what
+     portion of the calf is to be accounted as belonging to
+     either. If the bull and cow belong to different owners, the
+     relation of supply and demand, and the deeper causes that
+     determine them, decide in what proportion the value of the
+     calf is to be divided among them.]
+
+     [Footnote 148-2: Among the greatest services rendered by
+     _Adam Smith_ is, his complete demonstration, that any income
+     may be resolved into one or more of the three great branches
+     of the national income. (I, ch. 6.)]
+
+     [Footnote 148-3: _Ricardo_ has not unfrequently bewildered
+     uncritical readers, by his habit--in which he is by no means
+     always consistent--of using the expressions higher and lower
+     wages, higher and lower profit of capital, to designate not
+     the absolute greatness of these branches of income, either
+     in money or in the wants of life, nor their greatness from a
+     personal point of view, but only their relative greatness as
+     compared with the aggregate income, the measure of the quota
+     of the aggregate product which is divided among workmen,
+     capitalists, etc. And yet, in the case of most economic
+     questions, this is without doubt the less interesting side.
+     Compare the polemic of _R. Jones_, On the Distribution of
+     Wealth, 1831, I, 288 ff.; _Senior_, Outlines, 142 seq.;
+     _Carey_, On the Rate of Wages, 1834, 24. Thus, according to
+     _Ricardo_, the increase of one branch is possible only at
+     the expense of another, while in the case of flourishing
+     nations, the three branches increase absolutely and
+     together. _Ricardo_, himself, was by no means unacquainted
+     with this, as may be seen from _Baumstark's_ German
+     translation of his work, pp. 37, 108 ff.]
+
+
+
+
+CHAPTER II.
+
+THE RENT OF LAND.
+
+
+SECTION CXLIX.
+
+THEORY OF RENT.
+
+Rent is that portion of the regular net product of a piece of land which
+remains after deducting the wages of labor and the interest on the
+capital usual in the country, incorporated into it.[149-1] Hence it is
+the price paid for the using of the land itself, or for what Ricardo
+calls the original inexhaustible forces of the soil which are capable of
+being appropriated.[149-2] This price also depends, of course, on the
+relation between demand and supply; the demand in turn, on the wants and
+means of payment of buyers, but the supply by no means on cost of
+production, which, from the definitions above given, is here
+unthinkable. However, land has this in common with other means of
+production, that its price is mainly determined by that of its products.
+
+     [Footnote 149-1: According to _von Thuenen_, Der isolirte
+     Staat. in Beziehung auf Landwirthschaft und Nat. Oek, 1850,
+     I, 14: "what remains of the revenue of an estate after
+     deducting the interest on all the objects of value which may
+     be separated from the soil." According to _Whately_, it is
+     surplus profit. The expression "regular product" supposes,
+     among other things, an average skillfulness of the economic
+     individual. Thus, for instance, the farm-rent of a piece of
+     land generally includes besides the real rent of the land,
+     interest on much capital which is more or less firmly fixed
+     in the soil. The importance of the latter may be
+     approximately determined from the fact that in the
+     electorate of Hesse, for instance, the value of all meadow
+     lands, woods, and agricultural lands is estimated at from
+     205 to 206 millions of thalers, and the value of all the
+     houses at 100 millions. (_Hildebrand_, Statist. Mittheil.
+     ueber die volkswirthschaftlichen Zustaende Kurhessens, 1852,
+     37.) In the English income tax of 1843, the annual value of
+     all lands in Great Britain was estimated at over 45 millions
+     sterling, that of all houses at over 38 millions. However
+     the farm-rent of a piece of land does not by any means
+     always embrace the entire rent. A part of the rent is paid
+     to the state in the form of taxes, and another portion to
+     the payment of tithes. Short leasehold terms, frequent land
+     sales, the comparatively great difficulty of disengaging
+     capital invested in the cultivation of land, the union of
+     landed proprietor, capitalist and laborer in one person
+     easily obscure the law of rent.]
+
+     [Footnote 149-2: The stores of immediate plant food in a
+     piece of land, of minerals in a mine, of salt in a salt
+     mine, etc., are subject to the law of rent only in so far as
+     they may be considered inexhaustible; that is, they are not,
+     strictly speaking, subject to it. Our definition applies all
+     the more to the capacity for cultivation, and of support or
+     bearing capacity mentioned in Sec. 35; and hence it is easier
+     to follow the law of rent in the case of land used for
+     building purposes than for agriculture. When _v. Mangoldt_
+     claims that the exhaustibility or inexhaustibility of the
+     soil has nothing to do with rent so long as it flows evenly
+     (_so lange sie eben fliesst_) he is in harmony with his own
+     general conception of rarity-premiums
+     (_Seltenheitspraemien_).]
+
+
+SECTION CL.
+
+THEORY OF RENT. (CONTINUED.)
+
+Agricultural products of equal quantity and quality are produced on
+pieces of land of unequal fertility, even when the same amount of skill
+is displayed by the husbandman, with very different outlays of capital
+and labor.[150-1] And yet the price of these products in the same market
+is uniformly the same. This price must, on the supposition of free and
+intelligent competition, be, in the long run, at least high enough to
+cover the cost of production on even the worst soil (the margin of
+cultivation according to Fawcett), which must be brought under
+cultivation in order to satisfy the aggregate want. (See Sec. 110.) This
+worst land need yield no rent.[150-2] The better land which, with an
+equal outlay of labor and capital, produces a greater yield, furnishes
+an excess over the cost of production.[150-3] This excess is rent,
+which, as a rule, is obviously higher in proportion as the difference in
+fertility between the worst and the better land is greater. The person
+who cultivates the land of a stranger may unhesitatingly turn this rent
+over to the owner; since, notwithstanding his so doing, all that he has
+himself contributed to production in labor and capital of his own,
+returns to him entire in the product.[150-4]
+
+According to Sec. 34, a continual increase in the amount of labor and
+capital lavished on the fertilization of land, agricultural science
+remaining the same, leads, sooner or later to this, that every new
+addition of capital or labor becomes relatively less remunerative than
+the preceding.[150-5] The worse the land is, the sooner is this point
+reached. Hence, it necessarily happens that, with an increase in the
+aggregate want of agricultural products, greater and greater amounts of
+labor and capital are employed in the further fertilization of land, and
+that there comes to be a greater difference between the fertility of the
+worst and better lands, in consequence of which the rent of the latter
+rises.[150-6]
+
+     [Footnote 150-1: _Flotow_, Anleitung zur Abschaetzung der
+     Grundstuecke nach Klassen, 1820, 50 ff., estimates the cost
+     of production of a _scheffel_ of rye on land of the first
+     class, at scarcely 11/2 thalers; on land of the tenth class,
+     at 3 thalers. In Hanover, it is estimated that about 60 per
+     cent. of the land devoted to gardening and agricultural
+     products produces only from 2 to 4 times the quantity of
+     seed sown; over 35 per cent. from 5 to 8 times, and 4.5 per
+     cent. from 9 to 12 times. (_Marcard_, Zur Beurtheilung des
+     Nat. Wohlstandes im Koenigreich Hanover, Tab. 3.) In Prussia,
+     the rates of net produce adopted by the central commission
+     in 1862 vary from 3 to 420 silver groschens per _morgen_, in
+     the case of agricultural land; from 6 to 420 in the case of
+     meadow land; in the case of pasturage, from 1 to 360. (_v.
+     Viebahn_, Statist. des Zollvereins, II, 966.) In England,
+     parliamentary investigations (1821) have shown that the best
+     land produces from 32 to 40, and the worst from 8 to 12
+     bushels per acre of wheat. (Edinburgh Review, XL, 21.) As to
+     the influence of the elevation of land, the royal Saxon
+     commission for the assessment of the value of land,
+     estimated that the net product of an acre _of_ land at a
+     height above the level of the sea,
+
+     In the case of 2d class land--
+       Of  500 feet, 55     per cent.
+       Of  800  "    52-1/2    "
+       Of 1600  "    48        "
+       Of 2400  "    43.8      "
+
+     In the case of 11th class land--
+       42.9 per cent. of the gross yield.
+       39-1/2  "       "       "     "
+       34      "       "       "     "
+       26      "       "       "     "]
+
+     [Footnote 150-2: The English are very fond of assuming that
+     the worst land for the time being under cultivation pays no
+     rent. (_Ricardo_, Principles, II, 2.) This fact is
+     frequently obscured by the aggregation into one economic
+     whole of land that pays no rent and land that is able to pay
+     rent. (_John Stuart Mill_, Principles, II, ch. 16, Sec. 3.)
+     True it is that there is a great deal of land which cannot
+     be farmed out, but which can be used only by its owners.
+     Compare _Salfeld_, in the Landwirthsch. Centralb., 1871, II,
+     182 ff. On land near Wetzlar which, notwithstanding the high
+     price of land in the neighborhood, could not be farmed out
+     at auction, because no one was desirous to lease it, and
+     which was therefore turned over to the highest bidder for
+     the preceding piece, see _Stoeckhardt_, Zeitschr. fuer
+     deutsche Landwirthe, 1861, 237. Where, however, all the land
+     has its own proprietors, the competition of farmers may
+     easily produce a rent for the worst land. It is a matter of
+     complete indifference to the theory of rent, whether the
+     worst land when possessed only by right of occupation or
+     used as pasturage for cattle previous to its cultivation,
+     had value or not. Compare _Nebenius_, Oeff. Credit, I, 29;
+     _Hermann_, Staatswirthsch. Unters., 170 seq.]
+
+     [Footnote 150-3: The analogous gradation in mining may make
+     this clearer.]
+
+     [Footnote 150-4: _Ricardo_ illustrated this by the following
+     example. An uncultivated tract of country is settled by a
+     small colony. As long as there is here an excess of land of
+     the best quality, and everyone may take possession of it
+     without paying anything therefor, no rent of the land which
+     is merely occupied is possible. But if all the first class
+     land is under cultivation--land which perhaps with the
+     employment of a small amount of capital yields 5 quarters an
+     acre per annum; and the increasing population necessitates
+     the cultivation of land of the second class, which with the
+     same outlay of capital yields only 4 quarters an acre per
+     annum, there arises a rent of 1 quarter an acre per annum
+     for land of the first class. For the price, 4 quarters is
+     now high enough to cover the cost of production per acre,
+     and it must be a matter of complete indifference (complete
+     indifference?) to a new comer whether he obtains 5 quarters
+     from land of the first class as a farmer and pays out 1
+     quarter, or whether he harvests 4 quarters from second class
+     land as proprietor. If there is a further increase of
+     population, so that land of the third class also, which
+     yields only 3 quarters per acre per annum, must be brought
+     under cultivation, the price of corn rises again because the
+     cost of production has now to be covered by three quarters.
+     Land of the first class now pays a rent of 2 quarters and
+     second class land of 1 quarter. (Ch. 2.)]
+
+     [Footnote 150-5: _von Thuenen_, der isolirte Staat, II, I,
+     179, estimates that a bed of manure 1/3 of an inch thick on
+     an acre of ground, increases the production by 1/2; that a
+     second 1/2 inch of manure increases the yield only by a + of
+     5/8 corn; the third of 1/4 corn, etc. _Geyer_ is of opinion
+     that, in Saxony, land of the average quality will yield a
+     gross product of 60 thalers per acre, and 14 thalers net
+     product per acre, in case it is managed with the greatest
+     intelligence and the employment of a large amount of
+     capital; when managed in a very ordinary way, it would yield
+     20 thalers gross, and 7-1/2 thalers net product. _Thuenen_
+     gives the following formula determining when it is more
+     advantageous to cultivate the old land with more
+     _intensiveness_ (higher farming) than to begin the
+     cultivation of new: As long as p - _a_q is less than
+     sqrt(ap), so long is an increase of the outlay of capital on
+     the same land more profitable than the cultivation of new
+     land, and _vice versa_. Here p = aggregate product obtained
+     by a workman in a year from the amount of capital used by
+     him; a = sum of his necessary yearly wants; _a_ = the
+     interest per annum of a capital = p; q = the amount of
+     capital given to assist the individual workman.]
+
+     [Footnote 150-6: _Ricardo_ had, in every case in which
+     outlay of capital and labor of different degrees of
+     productiveness had to be used on the same land, to suppose a
+     price of the products = the cost of the least productive
+     outlay. See the tables in _Ricardo's_ work, On the Influence
+     of a low Price of Corn on the Profits of Stock, 1815, 14
+     seq. _Schmoller_, on the other hand, rightly applies the
+     principle of united costs of production in as far as the
+     usual amount of profit of the producer is added to the cost
+     of the commodity with the highest cost of production.
+     Mittheilungen des Landwirthsch. Instituts zu Halle, 1865,
+     128. Compare _supra_, Secs. 106, 110.]
+
+
+SECTION CLI.
+
+THEORY OF RENT.--LAND FAVORABLY SITUATED.
+
+The favorable situation of a piece of land operates, in almost every
+politico-economical respect, in the same manner as its fertility.[151-1]
+If a market, to be fully supplied, needs to be fed from a circuit of ten
+miles, the price must be sufficient to make good not only the other cost
+of production but the freight over ten miles. Here, therefore, all
+producers living nearer to the market, who have to make a smaller outlay
+for transportation and yet obtain the same market price for their
+produce, make a profit exactly corresponding to the advantage of their
+situation.[151-2]
+
+The situation of individual pieces of land relatively to farm buildings,
+etc., operates in a similar way.[151-3]
+
+     [Footnote 151-1: _L'eloignement equivaut a la sterilite._
+     (_J. B. Say._) If we imagine with _A. Walker_ an entirely
+     uncultivated country, equally fertile in every part, settled
+     only on the coast, and divided into shares of equal breadth,
+     equally accessible at all points, so that every settler has
+     unlimited space to extend his possessions from the coast
+     into the interior, the shares situated in the middle of the
+     coast strip would be most eagerly sought after; since in its
+     vicinity, prospectively, all the institutions of the country
+     would come together. The colonist, therefore, who should
+     obtain that share as his, would, unquestionably, be in a
+     condition to pay a price for this preference, that is a
+     rent. (Science of Wealth, 296.)]
+
+     [Footnote 151-2: It is a consequence both of their
+     difference of situation and of their fertility that in the
+     Himalaya the farmers low down on the sides pay 50 per cent.
+     of the gross product as farm-rent, and higher up, 20 per
+     cent. less. (_Ritter_, Erdkunde, III, 878.) Both influences
+     may be traced most accurately in East Friesland, and in
+     similar places: marsh land, sandy land, heath land, and high
+     moorland.
+
+     Its situation influences especially the money rent of land,
+     and its quality the amount of produce. (_McCulloch_,
+     Principles, III, 5.)]
+
+     [Footnote 151-3: We need only mention the hauling of the
+     crops and of manure. According to the instructions of the
+     royal Saxon commission, above mentioned, the cost is assumed
+     to be 10 per cent. higher for a distance of 250 rods, and 20
+     per cent. higher for a distance of 500 rods.]
+
+
+SECTION CLII.
+
+THE THEORY OF RENT. [CONTINUED.]
+
+From what we have said, it follows that the rent of the land of a
+country is equal at least to the sum of all the differences between the
+product of the least productive portions of capital which have been
+necessarily laid out in the cultivation of the soil and the product of
+the other portions more productively laid out by other husbandmen. It
+may rise higher than this on account of a coalition among landowners or
+immoderate competition among farmers, who may thereby be forced to
+surrender a portion of their wages and interest on capital to the
+former; but it can never lastingly fall below this amount. If the
+landowners themselves were to surrender all claim to rent, the price of
+agricultural products would not sink if the market was kept fully
+supplied; and the excess obtained from the better land over and above
+the cost of production would go, but only in the nature of a gift, to
+the farmers, corn dealers and individual consumers.[152-1] Normal rent
+is not to be explained by any mysterious or peculiar productiveness[152-2]
+of the land that yields it, but on the contrary, by the fact that even
+material forces unexhaustible in themselves, but which can be productive
+only in combination with given parcels of land, uniformly oppose even
+successively greater difficulties to every successive and additional
+improvement.[152-3]
+
+Moreover, the capital which becomes a part of the land to such an extent
+that it cannot be separated from it, and perhaps not even distinguished
+from it at sight, such for instance as has been laid out for purposes of
+drainage or in the purchase of material intended to modify the nature of
+the soil, partakes of the character of the land itself, and its yield
+obeys the laws of rent. How frequently it happens that such improvements
+made by the farmer without the least assistance from the owner of the
+land permanently contribute to an increase of the rent. (Sec. 181.)[152-4]
+
+     [Footnote 152-1: Compare _J. Anderson_, An Inquiry into the
+     Nature of the Corn Laws, 1777. Extracts from the same in the
+     Edinburgh Review, LIV, 91 ff. On the other hand, _Buchanan_,
+     on Adam Smith, IV, 134, thinks that rent arises exclusively
+     from the monopoly of the owners, and that without it the
+     price of corn would be lower. It is certain, however, that
+     if the land of a country be considered as one great piece of
+     property, and under one great system of husbandry, the
+     products of the soil might be offered permanently at a price
+     corresponding to the average cost of production, on the
+     better and worse pieces of land. (_Umpfenback_, N. Oek.,
+     191.)]
+
+     [Footnote 152-2: _Malthus_, On the Policy of restricting the
+     Importation of foreign Corn, 1815. Additions, 1817, to the
+     Essay on the Principle of Population, III, ch. 8-12;
+     Principles, 217 ff.]
+
+     [Footnote 152-3: _Ricardo_ says that if air, water,
+     elasticity and steam were of different qualities, and might
+     be made objects of exclusive possession; and that if each
+     kind could be had only in a moderate supply, they would,
+     like land, produce a rent, according as they were brought
+     into use, one kind after another. In the class of natural
+     forces, also, the possession of a secret of production or of
+     inimitable skill, or a legal right to its exclusive use, may
+     produce something similar to rent. (_Senior_, Outlines, 91.)
+     _Hermann_, Staatswirthsch. Unters., 163 ff., had already
+     laid the foundation of this doctrine, and earlier yet,
+     _Canard,_ 17 seq., and _Hufeland_. I, 303 ff. See _supra_, Sec.
+     120. Hence _v. Mangoldt_ uses the word rent to designate all
+     rarity-premiums. _John Stuart Mill_, III, ch. 5, 4.
+     _Schaeffle_ speaks of the universal existence of a surplus;
+     that is, of the factor of rent (Nat. Oek., I, Aufl., 140
+     ff.), and has recently developed this into a theory
+     thoroughly systematic and detailed. (Nationaloekonomische
+     Theorie der ausschliessenden Absatzverhaeltnisse, 1867.)
+
+     According to him, rent is "the premium paid for the most
+     economic course taken in the interest of society in
+     general;" and hence he finds rent as much in superior labor
+     and in a very advantageous outlay of capital. Yet he grants,
+     that "exclusive custom (_Kundschaft_) on the basis of
+     natural advantages occurs only in the case of land-rent."
+     (59.) And even granting that he is right, that no rent is by
+     itself forever secure (74 seq.), and that much rent is a
+     premium paid for a search after and the appropriation of the
+     best land, divination of the best situations, etc. (60 ff.,
+     74 ff.), there still remains the great difference between
+     rent and the extra income from labor and capital; that here
+     the very transitory nature of the substratum, or basis, and
+     the personal merit of the recipient, is the rule, while in
+     the former case it is a rare exception. Willingly,
+     therefore, as I recognize the possibility and fruitfulness
+     of Schaeffle's way of conceiving this subject (the latter,
+     especially, for monographic purposes), I prefer, so far as
+     the entire system is concerned, the keeping apart of the
+     three branches of income corresponding to the three factors
+     of production as has been usual since Adam Smith's time.]
+
+     [Footnote 152-4: _John Stuart Mill_, ch. 16, Sec. 5. An example
+     in _Fawcett_, Manual, 149 seq. This explains many objections
+     to Ricardo's laws, which are the result of misconception.
+     Thus, for instance, in _Schmalz_, Staatswirthschaftslehre,
+     I, 81, Quarterly Review, XXXVI, 412 ff. _Bastiat_, Harmonies
+     economiques, ch. 9, where rent is considered the interest on
+     the capital laid out in bringing land under cultivation and
+     improving it. If, however, we imagine an island to emerge
+     suddenly from the waves in the vicinity of Naples, in
+     consequence of an earthquake, no one can doubt that its land
+     would sell at a very high rate and pay a very good rent. And
+     yet no capital or labor has been laid out on it. A similar
+     lesson is taught by the fact, that, in Scotland, rocks which
+     are covered twice a day by the waves are leased for the sake
+     of the sea-weed left on them. (_Adam Smith_, Wealth of
+     Nations, I, ch. 11.) Also by the fact, that in Poulopinang,
+     a cavity in which many edible swallows' nests are found,
+     pays L500 a year rent. (Geogr. Ephemeriden, Oct., 1805,
+     134.) However, _Bastiat_, abstractly speaking, is right when
+     he says, that every one by the importation of agricultural
+     products from quarters which pay no rent, and still more by
+     emigrating thither, may deprive the owners of land of the
+     tribute imminent in rent.
+
+     But how would it be if the cost of transportation and
+     emigration amounted to more than the rent? The case
+     theoretically so important, in which all the land in the
+     world is supposed to have been appropriated as private
+     property, this writer, generally so lucid, treats in a
+     surprisingly blind way (275 ff). It is remarkable that _A.
+     Walker_, Science of Wealth, spite of his prejudices in favor
+     of Bastiat's doctrines on the gratuitous nature of all
+     natural forces, nevertheless follows, essentially,
+     _Ricardo's_ theory of rent, 294 ff.
+
+     A much more vulgar error yet is, that rent is the result of
+     the capacity of the capital employed in the purchase of the
+     land to produce some interest Thus _Hamilton_, Reports to
+     the Congress on the Manufactures of the United States, 1793,
+     and _Canard_, Principes, sec. 5. Per _contra_, compare
+     _Turgot's_ view, _supra_, Sec. 42, note 1. Even _Locke_,
+     Considerations on the Lowering of Interest, Works, II, 17
+     ff., maintained the closest parallel between rent and
+     interest to be possible, with this difference only, that
+     money was all of a kind but pieces of land of different
+     degrees of fertility. Similarly _Sir D. North_, Discourse
+     upon Trade, 1791, with his parallel of landlord and
+     stocklord.]
+
+
+SECTION CLIII.
+
+THEORY OF RENT. (CONTINUED.)
+
+Ricardo says that rent can never, not even in the slightest degree,
+constitute an element in the price of corn. This is certainly not a very
+happy way of expressing the truth, that a high rent is not the cause,
+but the effect, of a relatively high price of corn.[153-1] Ricardo would
+have been nearer right had he said that rent was not a component part of
+the price of every portion of the supply of corn brought to market.
+
+Is rent an addition to national income? Ricardo (ch. 31) answers this
+question in the negative, and says that it takes from the consumers what
+it gives to the owners of the land, and that it increases only the value
+in exchange of the national wealth.[153-2] It is evident that as thus
+stated, the question is not properly put. Neither interest on capital
+nor wages are any addition to a nation's income, but, like rent, only
+forms of trade, by means of which that income is distributed among the
+individuals constituting the nation. (Sec. 201.)
+
+The special kind of product obtained from a piece of land influences its
+rent only in so far as the growth of that kind of product is exclusively
+confined either by nature, privilege or prejudice to certain
+land.[153-3] Adam Smith is of opinion that the rent of agricultural land
+is ordinarily (!) one-third of the gross product; that of coal mines,
+from one tenth to a maximum of one-fifth; of good lead and tin mines,
+one sixth (with the dues paid the state of twenty-one and two-thirds per
+cent.); of Peruvian silver mines, scarcely one-tenth; of gold mines,
+one-twentieth. And he thinks that rent grows less certain for every
+succeeding article.[153-4]
+
+So far as this is based on facts, it may be explained as follows: The
+greater capacity an article has for transportation from one place to
+another, the less important is advantage of situation, which is
+generally one of the chief elements of rent. The more indispensable the
+commodity is, the more readily is the consumer induced to pay a price
+for it greater than the cost of production; that is, to pay a rent. This
+again is enhanced by the difficulty of the preservation of the
+commodity. Lastly, the more it is a mere product of nature,[153-5] the
+more difficult it is to simultaneously employ several portions of
+capital of different grades of productiveness in its production.
+
+     [Footnote 153-1: To be met with in this form even in _Adam Smith_,
+     Wealth of Nations, I, ch. 11, pr. _John Stuart Mill_, Principles
+     II, ch. 16, Sec. 6, thus states the matter: "Whoever cultivates land,
+     paying a rent for it, gets in return for his rent an instrument of
+     superior power to other instruments of the same kind for which no
+     rent is paid. The superiority of the instrument is in exact
+     proportion to the rent paid for it." According to _v. Jacob_,
+     Grundsaetze der Nat. Oek., I, 187, rent constitutes a much larger
+     portion of the price of commodities than is generally supposed, in
+     as much as wages depend so largely on the price of the means of
+     subsistence. Per contra, _Baudrillart_, Manuel, 391 ff., who
+     maintains that rent is practically insignificant.]
+
+     [Footnote 153-2: Similarly _Buchanan_, loc. cit., and _Sismondi_,
+     Richesse commerciale, I, 49. Compare contra, _Malthus_, Inquiry
+     into the Nature and Progress of Rent, 15. I would call attention
+     _en passant_ to the absurdity that there may be an increase in the
+     value in exchange of a nation's entire resources without any
+     increase in its value in use. (_Supra_, Sec. 8.)]
+
+     [Footnote 153-3: Thus _Adam Smith_ remarks that corn fields and
+     rice fields pay very different rents, because it is not always
+     possible to convert one into the other. (Wealth of Nat., I, ch. 11,
+     1.) Compare the tabular statistical view of the rent of land used
+     for vineyards, gardens, meadows, pasturages, wood and farming
+     purposes, in _Rau_, Lehrbuch, I, Sec. 218. For a general theory of the
+     rent of wooded land, see _Hermann_, Staatsw. Unters., 177 ff.; of
+     vineyards, 181 seq.]
+
+     [Footnote 153-4: _Adam Smith_, Wealth of Nat., I, ch. 11, 3.]
+
+     [Footnote 153-5: It is hereby rendered akin to those low stages of
+     civilization in which no rent is paid.]
+
+
+SECTION CLIV.
+
+THEORY OF RENT. (CONTINUED.)
+
+As the purchase of a piece of land[154-1] is no more and no less than
+its exchange against a portion of capital in the shape of money,[154-2]
+its purchase price depends generally on the amount it will rent for as
+compared with the interest on the capital to be given in exchange for
+it. The rate of interest remaining the same, it rises and falls with its
+rent. And _vice versa_, the rent remaining the same it rises and falls
+inversely as the rate of interest.[154-3] A rise in the price of land is
+not always a proof of the growing wealth of a people. It may proceed
+from a depreciation of the value of money, or from a decrease of the
+rate of interest caused by a decline in the number of loans which can be
+advantageously placed.
+
+It is frequently said, that the price paid for land is greater than the
+money-capital which yields an equal revenue.[154-4] This, abstraction
+made of proletarian distress prices for small parcels of land and of the
+political and social privileges of landowners, is accounted for by the
+assumed greater security of the latter,[154-5] which, however, fares ill
+enough in war times, and times of political disturbance. The fact itself
+is found to exist, I think, only in economically progressive times, when
+confidence prevails, and it is based on the pretty certain prospect that
+the rate of interest will decline, while rents will rise.[154-6]
+
+It has been observed in Belgium, that the medium farm rent of land, in
+quarters remarkable for any economic peculiarity whatever, pays an
+interest lower, as compared with the purchase money, in proportion as
+the country about is more thickly populated, and as its husbandry is
+carried on by farmers instead of by owners.[154-7] This phenomenon is
+doubtless correlated with these others, that the conditions just named
+are pretty regularly attendant on a high state of civilization, and that
+advanced civilization is attended uniformly by a decline in the rate of
+interest. (175).[154-8]
+
+     [Footnote 154-1: In every day language, people say of a man
+     who has purchased a piece of land, that he "put" as much
+     capital as is equal to the purchase price "into his land;"
+     or "laid out on it" as much. But this mode of expression is
+     as inaccurate as is this other: "the sun is rising," or "the
+     sun has gone down."]
+
+     [Footnote 154-2: _Macleod_, who is not fond of the natural
+     mode of expression, maintains that the purchase price of a
+     piece of land is equal to the discounted value of the sum of
+     the values of all the future products to be obtained from
+     the land. (Elements, 75.)]
+
+     [Footnote 154-3: C:i::L:r in which C = the capital, i = its
+     interest, L = the piece of land, and r = its rent.]
+
+     [Footnote 154-4: There are traces to be found of the fact
+     among the ancient Greeks, that the farm-rent of landed
+     estates paid a smaller interest on the purchase money than
+     was otherwise usual in the country. _Isaeus de Hagn._, 42;
+     _Salmasius_, De Modo Usur., 848.]
+
+     [Footnote 154-5: Thus even _North_ and _Locke_, loc. cit.;
+     _Cantillon_, Nature du Commerce, 294.]
+
+     [Footnote 154-6: Compare _List_, Werke II, 173. In Belgium,
+     farm-rent per _hectare_ was, in 1830 = 57.25 francs, in 1835
+     = 62.78, in 1840 = 70.44, in 1846 = 74.50, on an average.
+     This was at the rate of from 2.62 to 2.80, or an average of
+     2.67 per cent. on the purchase money. If to this we add the
+     increase in the rise of land between 1830 and 1846, divided
+     by 16, the yearly revenue rises from 2.67 to 3.91 per cent.,
+     that is pretty nearly the rate of interest on hypothecation,
+     and is higher or lower in the different provinces, as the
+     former is higher or lower. (_Heuschling_, Resume du
+     Recensement general de 1846, 89.) In France, land paid but
+     from 2 to 3 per cent. on the purchase money; but both rents
+     and the price of land have doubled between 1794 and 1844.
+     (Journal des Econ., IX, 208.)]
+
+     [Footnote 154-7: Moreover, whole countries may, because of
+     their great natural advantages, possess, so far as the
+     commerce of the entire world is concerned, something
+     analogous to rent. Thus, for instance, North America,
+     although here, this world-rent finds expression in the
+     national height of the wages of labor and of the rate of
+     interest, (_v. Bernhardi_, Versuch einer Kritik der Gruende
+     welche fuer grosses und kleines Grundeigenthum angefuehrt
+     werden, 1848, 294.)]
+
+     [Footnote 154-8: Writers as old as _Culpeper_, A Tract
+     against the high Rate of Usurie, 1623, and _Sir J. Child_,
+     Discourse of Trade, p. 22 of the French translation,
+     observed the connection existing between a low rate of
+     interest, national wealth and a flourishing state of
+     commerce on the one hand, and a high price of the
+     necessaries of life and of land in the other. _Sir W. Petty_
+     would estimate the rent of land as follows: If a calf
+     pasturing in an open meadow gains as much flesh in a given
+     time as is equal to the cost of the food of 50 men for a
+     day, and a workman, on the same land, in the same time,
+     produces food for 60 men, the rent of the land must be 50,
+     and the rate of wages 10. (Political Anatomy of Ireland, 62
+     seq.; compare 54.) Besides, he accounts for the height of
+     rents by the density of the population exclusively, and he
+     would prefer to see both increase _ad infinitum_. (Several
+     Essays on Political Arithmetic, 147 ff.)
+
+     The germs of the _Ricardo_ law of rent, in _Boisguillebert_:
+     the price of corn determines how far the cultivation may be
+     extended; by manuring the land, as much corn as desired may
+     be obtained, provided the cost of production is covered.
+     (Traite des Grains, II, ch. 2 ff.) There is a foreshowing of
+     the same law in the Physiocratic view that only in the
+     production of raw material is there a real excess over and
+     above the cost--_produit net_. Compare _Quesnay_, Probl.,
+     economique, 177 ff. Sur les travaux des artisans. (Daire.)
+     _Auxiron_, Principes de tout Gouvernement, 1776, I, 126.
+     _Adam Smith_ came very near to the true principle in the
+     case of coal mines, but was hindered reaching it in other
+     cases by the false assumption that certain kinds of
+     agricultural production always yield a rent, while others do
+     so only under certain circumstances. Besides he always
+     considered the interest of capital fixed in the soil;
+     buildings, for instance, as part of the rent. (Wealth of
+     Nat., I, ch. 11.) Compare _Hume's_ Letter to Adam Smith;
+     _Burton's_ Life and Correspondence of Hume, II, 486; _von
+     Thuenen_, Isolirter Staat., I, 15 ff.
+
+     The most immediate predecessors of _Ricardo_, Principles, 2,
+     3, 24, 31, are _Anderson_ (Sec. 152); _West_, Essay on the
+     Application of Capital to Land, 1815, and _Malthus_, Inquiry
+     into the Nature and Progress of Rent, 1815. See Sec. 152. It is
+     wonderful how a theory which, in 1777, remained almost
+     untouched, was in 1815 etc., attacked and defended with the
+     greatest zeal, because it then affected the differences
+     between the moneyed and landed interest. Yet _Ricardo_ did
+     not take into account at all the rent-creating influence of
+     the situation of land in relation to the market, as well as
+     to the "farm-office" (_dem Wirthschaftshofe_). The influence
+     of the system of husbandry on rent, first thoroughly treated
+     by _von Thuenen_, loc. cit. What has recently been urged
+     against _Ricardo_ by, for instance, _J. B. Say_, Traite, II,
+     ch. 9; _Sismondi_, N. P., III, ch. 12; _Jones_, Essay on the
+     Distribution of Wealth, 1831 (see Edinburg Review, LIV),
+     bears evidence either of a misunderstanding of the great
+     thinker, or else contains only modifications of some
+     individual abstract propositions of his, stated perhaps too
+     strictly. In judging _Ricardo_, it must not be forgotten,
+     that it was not his intention to write a text-book on the
+     science of Political Economy, but only to communicate to
+     those versed in it the result of his researches, in as brief
+     a manner as possible. Hence he writes so frequently making
+     certain assumptions; and his words are to be extended to
+     other cases only after due consideration, or rather
+     re-written to suit the changed case.
+
+     _Baumstark_ very correctly says: "Rent rises, not because
+     new capital has been invested, but when the circumstances of
+     trade make a new addition to capital possible."
+     (Volkswirthschaftliche Erlaeuterungen ueber Ricardo's System,
+     1838, 567.) _Fuoco's_ Nuova Teoria della Rendita, Saggi
+     economici, No. 1, is nothing but an Italian version of the
+     doctrines of Malthus and Ricardo. The greater number of
+     anti-Ricardo theories of rent have originated from the rapid
+     and apparently unlimited growth of national husbandry in
+     recent times. Thus it is a fundamental thought in
+     _Rodbertus_, Sociale Briefe, 1851, No. 3, that an increase
+     of the price of corn need not attend an increase of
+     population, either uniformly or necessarily. According to
+     _Carey_, The Past, the Present and the Future, ch. 1, 1848,
+     the most fertile land is last brought under cultivation,
+     because it is covered with swamps, forests, etc.; and
+     because it offers greater resistance to the work of the
+     agriculturist, by reason of its luxurious vegetation. The
+     more elevated lands are first cultivated which present fewer
+     obstacles to cultivation on account of their dryness, their
+     thinner crust, etc. Carey generalizes this and thinks he has
+     reversed the _Ricardo_ law of rent! He overlooks entirely
+     that _Ricardo_ speaks only of the original powers of the
+     soil. Now a swampy land which must be dried at the expense
+     of a great deal of labor, possesses less of these original
+     powers than a sandy soil which may be sown immediately. See
+     _Carey_, Essay on the Rate of Wages, 232 ff., and the
+     lengthy exposition of the same doctrine rank with inexact
+     natural science and unhistorical history in the same
+     author's Principles of Social Science, 1858, vol. I.
+
+     There is this much truth, however, in Carey's error that,
+     with increasing economic progress, the superiority not only
+     of situation, relatively to the market, but also of natural
+     fertility, may of itself go over to other lands. Thus, for
+     instance, the ancient Slaves used clay soil everywhere as
+     pasturage, and cultivated the sandy soil, because their
+     pick-axes could overcome the resistance only of the latter.
+     _Langethal_, Geschicte der deutschen Landw., II, 66;
+     _Waitz_, Schlesw. Holstein, Gesch., I, 17. Similarly in
+     Australia: _Hearne_, Plutology, 1864. Compare, _Roscher_,
+     Nationaloekonomik des Ackerbaues, Sec. 34. The word fertility
+     should not be taken too exclusively in its present
+     agricultural sense. In a lower stage of civilization, the
+     facility of military defense or the _ut fons, ut nemus
+     placuit_--_Tacit._, Germ., 16--may have more weight.
+
+     The chief difference in the theories of rent consists in
+     this: whether rent is considered a result of production or
+     only of distribution, and an equalization of gain. Compare
+     _Behrens_, Krit. Dogmengeschichte der Grundrente, 1868, 48.]
+
+
+SECTION CLV.
+
+HISTORY OF RENT.
+
+In poor nations, and in those in a low stage of civilization, especially
+where the population is sparse, rent is wont to be low. In Turkistan,
+land is valued according to the capital invested in its
+irrigation.[155-1] In the interior of Buenos Ayres, at the beginning of
+the nineteenth century, landed estates were paid for in proportion to
+the magnitude of the live stock on them, so that it seemed, at least, as
+if the land was given for nothing, or simply thrown in with the
+purchase. And only a short time since, an English acre in the same
+country, fifteen _leguas_ from the capital, was worth from three to four
+pence, and at a distance of fifty _leguas_, only two pence.[155-2] In
+Russia, also, not long since, the valuation of landed estates was made,
+not in proportion to the superficies, but according to the number of
+souls, that is, of male serfs, a _remnant_ suggestive of the previous
+situation when no rent was paid.[155-3] Where, in relatively uncivilized
+medieval times, instances of the farming out or leasing of land occur,
+farm-rents are so small that their payment can only be considered as a
+mere recognition of the owner's continuing right of property.
+
+Under these circumstances, it is natural that great landowners,
+especially in the lower stages of civilization, should exert an
+especially great influence; and that their low tenants (_Hintersassen_)
+are more dependent in proportion to the want of capital and the absence
+of trade. Hence, these are wont to make up for the smallness of their
+rent by great honors paid to their landlords, and great services,
+especially military service.[155-4] Besides, the lords of the manor, in
+almost every medieval period, have used their influence with the
+government to cut down the wages of labor by serfdom and other similar
+institutions, and the rate of interest on capital by prohibiting
+interest, by usury laws, etc.; and thus, in both ways, to artificially
+increase their own share of the national income.
+
+     [Footnote 155-1: _A. Burnes_, Reise nach Bukhara, II, 238.]
+
+     [Footnote 155-2: _W. Maccann_, Two Thousand Miles Ride
+     through the Argentine Provinces, London, 1853, I, 20; II,
+     143. Ausland, 1843, No. 140. Frisian ancient documents in
+     which parcels of land are described as _terrae 20 animalium,
+     48 animalium_, etc. _Lacomblet_, Urkundenbuch, I, 27.
+     _Kindlinger_, Muenster Beitr., I, Urkundenbuch, 24.]
+
+     [Footnote 155-3: The custom began to be more usual in Russia
+     also to say "so many _dessjatines_ and the peasantry
+     belonging thereto." This was especially so in the case of
+     very fertile land, as for instance in Orel. See _v.
+     Haxthausen_, Studien, II, 510. Formerly the bank loaned only
+     250 per soul, afterwards up to 300 R. Bco. (II, 81). Spite
+     of this _v. Haxthausen_ thinks that rent would be illusory,
+     in Russia, in case agriculture was carried on with hired
+     workmen. (I, Vorrede, XIII.) _Carey's_ remark, "every one is
+     familiar with the fact that farms sell for little more than
+     the value of the improvements," may be true of the United
+     States (The Past, Present and Future, 60.)]
+
+     [Footnote 155-4: This condition of things continued in the
+     highlands of Scotland until the suppression of the revolt of
+     1745. The celebrated Cameron of Lochiel took the field with
+     800 tenants, although the rent of the land was scarcely
+     L500. (_Senior_, Three Lectures on the Rate of Wages, 45.)
+     "Poor 12,000 pound sterling per annum nearly subverted the
+     constitution of these kingdoms!" (_Pennant._)]
+
+
+SECTION CLVI.
+
+INFLUENCE OF ADVANCING CIVILIZATION ON RENT.
+
+Advancing civilization contributes in three different ways to raise
+rents.[156-1] The growth of population necessitates either a more
+_intensive_ agriculture (higher farming), or causes it to extend over
+less fertile parcels of land, or parcels less advantageously
+situated.[156-2] If the growth of population be attended by an increase
+of capital, this happens in a still higher degree. The people now
+consume, if not more, at least wheat of finer quality, more and better
+fed live stock; the consequence of which is, that the demands made on
+the land are increased. Lastly, if the population be gradually
+concentrated in large cities, this fact also must contribute to raise
+rents, because it requires a multitude of costly transportations of
+agricultural produce and so increases the cost of production (up to the
+time of consumption) on the less advantageously situated
+land.[156-3] [156-4]
+
+As most of the symptoms of a higher civilization become apparent
+earliest, and in the most striking manner, in large cities, so also a
+rise in rents is first felt in them. The building of houses may be
+considered as the most _intensive_ of all cultivation of land and that
+which is most firmly fixed to the soil.[156-5] Rent has nowhere an
+unsurpassable maximum any more than a necessary minimum.
+
+     [Footnote 156-1: _Jung_, Lehrbuch der Cameralpraxis, 1790,
+     182, has so little idea of this that he is of opinion that
+     farm-rent must grow ever smaller.]
+
+     [Footnote 156-2: According to _Schmoller_, in the
+     Mittheilungen des landwirthschaftlich. Instituts zu Halle,
+     1865, 112 seq., the average farm-rent of the Prussian
+     domains per _morgen_, and the population to the square mile,
+     amounted:
+
+     ===============+============+============+============+==========
+       _District._  |  _1849._   |  _1864._   |  _1849._   |  _1858._
+     ---------------+------------+------------+------------+----------
+                    |       _Thalers._        |      _Population_
+                    |                         |   _per square mile_
+     Koenigsberg,    |    0.73    |    1.16    |    2076    |    2298
+     Gumbinnen,     |    0.59    |    0.76    |    2059    |    2249
+     Danzig,        |    1.02    |    1.51    |    2656    |    2926
+     Marienwerder,  |    0.63    |    1.06    |    1944    |    2135
+     Posen,         |    0.69    |    1.07    |    2789    |    2857
+     Bromberg,      |    0.69    |    1.10    |    2116    |    2322
+     Stettin,       |    1.07    |    1.73    |    2355    |    2614
+     Coeslin,        |    0.83    |    1.30    |    1735    |    1940
+     Stralsund,     |    0.95    |    1.50    |    2347    |    2549
+     Breslau,       |    1.19    |    1.45    |    4733    |    5034
+     Liegnitz,      |    1.17    |    1.75    |    3676    |    3763
+     Oppeln,        |    0.86    |    1.20    |    3973    |    4433
+     Potsdam,       |    1.08    |    1.59    |    3317    |    3640
+     Frankfort,     |    1.29    |    2.00    |    2446    |    2660
+     Magdeburg,     |    2.31    |    2.98    |    3290    |    3508
+     Werseburg,     |    2.35    |    3.03    |    3934    |    4270
+     Erfurt,        |    2.04    |    2.55    |    5621    |    5735
+     Muenster,       |    ....    |    2.03    |    3192    |    3299
+     Minden,        |    2.48    |    2.62    |    4841    |    4808
+     ===============+============+============+============+==========
+
+     Compare the review of rents in the states of the Zollverein,
+     in _v. Viehbahn_, Statistik, II, 979. It is difficult to
+     compare different countries with one another in this
+     respect, because it is seldom certain whether the word rent
+     means exactly the same thing in them. Besides, it should not
+     be overlooked, how difficult it is to ascertain what rent,
+     in the strict sense of the term, as used by _Ricardo_, is.]
+
+     [Footnote 156-3: Moreover, the rise of rents, in so far as
+     it depends on the greater cost of transportation to a
+     growing market, becomes progressively slower. The concentric
+     circles about that point increase in a greater ratio than
+     the radii.]
+
+     [Footnote 156-4: As to the history of rents in England, a
+     comparison of the years from 1480 to 1484, with the most
+     recent times, shows that the amount of rent estimated in
+     money in agricultural districts, where no very great
+     "improvements" have been made, have increased as 1 to
+     80-100, while the price of wheat has increased 12-fold and
+     wages 10-fold. (_Rogers_, in the Statist. Journal, 1864,
+     77.) According to _Hume_, History of England, ch. 33, it
+     seems that rents under Henry VIII. were only 1/10 of those
+     usually paid in his time, while the price of commodities was
+     only 1/4 of the modern. _Davenant_, Works, II, 217, 221,
+     estimates the aggregate rent of land, houses and mines, at
+     the beginning of the seventeenth century, at L6,000,000;
+     about 1698, at L14,000,000; capitalized respectively at
+     L72,000,000 and L252,000,000. About 1714, _J. Bellers_,
+     Proposals for Employing the Poor, puts it at L15,000,000;
+     about 1726, _Erasm. Phillips_, State of the Nation in
+     Respect to Commerce etc., at L20,000,000; about 1771, _A.
+     Young_, at L16,000,000; about 1800, _Beeke_, Observations on
+     the Income-Tax, at L20,000,000; about 1804, _Wakefield_,
+     Essay on Political Economy, at L28,000,000; about 1838,
+     _McCulloch_, Statist., I, 535, at L29,500,000. The poor tax
+     in England and Wales, in 1841, was on a valuation of
+     L32,655,000. (_Porter_, Progress, VI, 2, 614); 1864-5, the
+     annual value of lands, L46,403,853 (Stat. Journal, 1869.)
+     Moreover, the income from houses, railroads, etc. (real
+     property other than lands), increased very much more than
+     that received from pieces of farming land; between 1845 and
+     1864-5, the former by 392.8 per cent., and the latter by
+     27.9 per cent. (_Hildebrand's_ Jahrbb., 1869, II, 383 seq.);
+     and the income tax of 1857 on L47,109,000. There was a still
+     more rapid growth of rent in Scotland. In 1770, it was only
+     L1,000,000-1,200,000: in 1795, L2,000,000; in 1842,
+     L5,586,000. (_McCulloch_, I, 576, ff.) In Ireland, about
+     1776, it was only $900,000, according to _Petty_. (Political
+     Anatomy of Ireland, I, 113.) _A. Young_ assumed it to be
+     L6,000,000 in 1778; _Newenham_, View of Ireland, about 1808,
+     L15,000,000. In many parts of the Rosendale Forest in
+     Lancashire, the land is leased by the ell, at L121, and even
+     at L131 per acre; i. e., more than the whole forest of
+     15,300 acres was rented for in the time of James I. In many
+     of the moorland portions of Lancashire, rent has risen in
+     150 years, 1,500 and even 3,000 per cent. (Edinburg Rev.,
+     1843, Febr., 223.)
+
+     The amount of rents in Prussia, _Krug_ assumed to be in
+     1804, 50,000,000 thalers, and _von Viebahn_, Zollverein
+     Statistik, II, 974, in 1862, 116,500,000 thalers. _Lavergne_
+     assumed the rents of France after 1850 to be 1,600,000,000
+     francs (Revue des deux Mondes, Mars, 1868); and _Dutot_,
+     Journal des Economistes, Juin, 1870, in 1870, at
+     2,000,000,000. In Norway, the capitalized value of all the
+     land was assessed at 13,000,000,000 thalers in specie, in
+     1665; in 1802, at 25,500,000; in 1839, at 64,000,000
+     thalers. _Blom_, Statistik von Norwegen, I, 145. The older
+     such estimates are, the more unreliable they are.]
+
+     [Footnote 156-5: In Paris, in 1834, the square _toise_ = 37
+     sq. feet, in the Rue Richelieu and Rue St. Honore, cost
+     1,500 to 2,000 francs; in Rue neuve Vivienne, 2,500 to 3,500
+     francs; in 1857, from 200 to 500 francs per square meter, =
+     10 sq. feet, was very usual. (_Wolowski_.) Before the gates
+     of Paris, the rent amounted to as high as 250 francs per
+     _hectare_; at Fontainebleau, to only from 30 to 40. (Journal
+     des Economistes, Mars, 1856, 337.) In Market Square,
+     Philadelphia, land was worth from 3,000 to 4,000 francs per
+     sq. _toise_, and in Wall Street, New York, about 4,000
+     francs. (_M. Chevalier_, Letters sur l'Amerique, 1836, I,
+     355.) In St. Petersburg, after 6 years, the house frequently
+     falls to the owner of the area. (_Storch._ by _Rau_, I, 248
+     f.) In Manchester, the Custom House area cost from 10 to 12
+     pounds sterling per square yard; in the center of the city,
+     as high of L40, that is, nearly L200,000 per acre. In
+     Liverpool, in the neighborhood of the Exchange and of Town
+     Hall, the cost is from 30 to 40 pounds sterling. (Athenaeum,
+     Dec. 4, 1852.) In London, a corner building on London
+     street, erected for L70,000, with only three front windows,
+     pays a rental of L22,000. (Allg. Zeitung, 1 Febr., 1866.)
+     The villa at Misenum--a very beautiful location--which the
+     mother of the Gracchi bought for about 5,000 thalers, came
+     into the possession of L. Lucullus, consul in the year B. C.
+     74, for about 33 times as much. _Mommsen_, Roemisch. Gesch.,
+     II, 382.]
+
+
+SECTION CLVII.
+
+HISTORY OF RENT.--IMPROVEMENTS IN THE ART OF AGRICULTURE.
+
+Improvements in the art of agriculture which are confined to individual
+husbandmen leave rent unaffected. They do not perceptibly lower the
+price of agricultural products, and only effect an increase of the
+reward of enterprise which is entirely personal to the more skillful
+producers and does not attach to the ground itself.
+
+But how is it when these improvements become general throughout the
+country? If population and consumption remain unchanged, the supply of
+agricultural products will exceed the demand. This would compel farmers,
+if there be no avenue open to exports, to curtail their production. The
+least fertile and most disadvantageously situated parcels of land will
+be abandoned to a greater or less extent, and the least productive
+capital devoted to agriculture, withdrawn. In this way, rent goes down
+both relatively and absolutely, although the owners of land may be able
+to partially cover their loss by the gain which results to them as
+consumers and capitalists.[157-1] (Sec. 186). After a time, however, and as
+a consequence of the diminished price of corn, population and
+consumption will increase, and entail an extension of agriculture and a
+consequent rise in rents.[157-2] If it, relatively speaking, reaches the
+same point as before, it still is absolutely much greater than before.
+Let us suppose that there are three classes of land of equal extent in a
+country, which for an equal outlay of capital produce 100,000, 80,000
+and 70,000 bushels yearly. The rent of the land here would be equal to
+at least 40,000 bushels. If the yield of production now doubles, while
+the demand for agricultural products also doubles, the aggregate harvest
+will be 200,000 + 160,000 + 140,000 bushels, and consequently rent will
+have risen to at least 80,000 bushels. But this increase of rent has
+injured no one. If the population increases in a less degree than the
+productiveness of the land, the consumer may, to a certain extent, gain
+largely, and the landowner better his condition. However, great
+agricultural improvements spread so gradually over a country, that, as a
+rule, the demand for agricultural products can keep pace with the
+increased supply. But even in this case, that transitory absolute
+decline of rent may be avoided; and it cannot be claimed universally, as
+it is by many who are satisfied with mumbling Ricardo's words after him,
+that an increase of rent is possible only by an enhancement of the price
+of the products of the soil. Where the development of a people's economy
+is a normal one, the rent of land is wont to increase gradually, but at
+the same time to constitute a diminishing quota of the entire national
+income.[157-3]
+
+Improvements in milling,[157-4] and in the instruments of
+transportation[157-5] adapted to agricultural products, and the
+introduction of cheaper[157-6] food, have the same effect as
+improvements of agricultural production. All such steps in advance
+render an increase in population, or in the nation's resources, possible
+without any corresponding increase in the amount paid to landowners as
+tribute money.[157-7]
+
+The foregoing facts furnish us the data necessary to decide what
+influence permanent soil improvements have on the rent of land.[157-8]
+The improved parcels of land now grow more fertile. Their rentability
+also increases, while that of the others becomes not only relatively but
+absolutely less, if the demand remains unaltered. The whole is as if
+capital had been transformed into fertile land, and this added to the
+improved land.
+
+     [Footnote 157-1: Since it has seemed absurd to many writers
+     to say that an improvement in the art of agriculture may
+     cause rents to decline (compare _Malthus_, Principles, I,
+     ch. 3, 8), _John Stuart Mill_, Principles, IV, ch. 3, Sec. 4,
+     prefers to put the question thus: whether the landowner is
+     not injured by the improvement of the estates of other
+     people, although his own is included in the improvement.
+     Compare _Davenant_, Works, I, 361. And so the long
+     agricultural crisis through which Germany passed at the
+     beginning of the third decade of this century was produced
+     mainly by the great impulse given to agriculture (_Thaer_,
+     _Schuerz_ etc.), while population did not keep pace with it.
+     Similarly, at the same time, in England, _McCulloch_, Stat.,
+     I, 557 ff. Of course, the less fertile pieces of land
+     declined even relatively most in price. From 1654 to 1663,
+     Switzerland experienced a severe agricultural crisis,
+     attended with oppressive cheapness of corn, a great decline
+     in the price of land, innumerable cases of insolvency,
+     revolts of the peasantry, emigration, etc. (_Meyer von
+     Knonau_, Handbuch d. schweiz. Gesch., II, 43.) The Swiss
+     had, precisely during the Thirty Years' War which spared
+     them, so extensively developed their agricultural interests,
+     that now that other countries began to compete with them,
+     they could not find a market large enough for their
+     products. For English instances of similar "agricultural
+     distress" in the seventeenth and eighteenth centuries, see
+     _Child_, Discourse on Trade, 73, 124 seq.; _Temple_,
+     Observations upon the U. P., ch. 6; _Tooke_, History of
+     Prices, I, 23 seq., 42. Even where there have been no
+     technic improvements, a series of unusually good harvests
+     may have the same results, of which there are many instances
+     scattered through _Tooke's_ first volume.
+
+     There is great importance attached in England to the
+     difference between those agricultural reforms which save
+     land and those which effect a saving in capital and labor.
+     The latter, it is said, decrease the money rent of the
+     landowner by depreciating the price of corn, but leave the
+     corn-rent unaltered. The former, on the other hand, decrease
+     the rent both in money and corn, but the money rent in a
+     higher degree. (_Ricardo_, Principles, ch. 2; _J. S. Mill_,
+     Principles, IV, ch. 3, 4.)]
+
+     [Footnote 157-2: When the demand for products of the soil
+     which minister to luxury, such as fat meat, milk,
+     vegetables, is increasing, a greater cheapness of the
+     necessary wheat may raise rent, for the reason that lands
+     are now cultivated which were not formerly tillable. Thus,
+     there is now land in Lancashire which could not formerly be
+     planted with corn, because the laborers would have consumed
+     more than the harvest yielded. Since the large imports of
+     the means of subsistence from Ireland these lands have been
+     transformed into artificial meadows, gardens, etc.
+     (_Torrens_, The Budget, 180 ff.) Compare _Adam Smith_, I,
+     257, ed. Bas. _Banfield_ would misuse these facts to
+     overturn the theory of Ricardo. (Organization of Industry,
+     1848, 49 ff.)]
+
+     [Footnote 157-3: The French testamentary tax was on an
+     amount,
+
+       In 1835, of   552 mill. francs moveable property
+               and   984  "    immoveable.
+       In 1853, of   820  "    francs moveable property
+               and 1,176  "    immoveable.
+       In 1860, of 1,179  "    francs moveable property
+               and 1,545  "    immoveable.
+
+     so that the preponderance of immoveable property constituted
+     a converging series of 78, 43, and 31 per cent. (_Parieu._)
+     In North America, with its great unoccupied territory, the
+     reverse is the case. The census of 1850 gave a moveable
+     property of 36 per cent.; that of 1860 of only 30 per cent.
+     According to _Dubost_, the rent of land in Algeria was 80
+     per cent., a gross product of only 10-15 francs per
+     _hectare_; in Corsica, 66 per cent., a gross yield of from
+     30-35 per cent.; in the Department du Nord, 17.5-24 per
+     cent., a gross yield of from 500-740 francs. (Journal des
+     Economistes, Juin, 1870, 336 ff.)]
+
+     [Footnote 157-4: The repeated sifting of the bran (_mouture
+     economique_) had great influence in this respect. In France,
+     in the sixteenth century, a _setier_ of wheat gave only 144
+     pounds of bread. In 1767, according to _Malouin_, L'Art du
+     Bonlanger, it gave 192 pounds. It now gives from 223 to 240
+     pounds. The gain in barley is still greater; the _setier_
+     gives 115 pounds of flour, formerly only 58. (_Roquefort_,
+     Histoire de la Vie Privee des Francais, I, 72 ff.
+     _Beckmann_, Beitr. zur Gesch. der Erfind., II, 54.)]
+
+     [Footnote 157-5: In the beginning of the eighteenth century,
+     the counties in the neighborhood of London addressed a
+     petition to Parliament against the extension of the building
+     of turnpike roads which caused their rents to decline, from
+     the competition of distant districts. (_Adam Smith_, Wealth
+     of Nat., I, ch. 11, 1.) Compare _Sir J. Stewart_,
+     Principles, I, ch. 10. Improvements in transportation which
+     affect the longest and shortest roads to a market in an
+     absolutely equal degree, as, for instance, the bridging of a
+     river very near the market, leave rent unaffected. (_von
+     Mangoldt_, V. W. L., 480.)]
+
+     [Footnote 157-6: _Malthus_, Principles, 231 ff. If the
+     laboring class were to become satisfied with living on
+     potatoes instead of meat and bread as hitherto, rents would
+     immediately and greatly fall, since the necessities of the
+     people might then be obtained from a much smaller
+     superficies. But after a time, the consequent increase in
+     population might lead to a much higher rent than before;
+     since a great deal of land too unfertile for the cultivation
+     of corn might be sown with potatoes, and thus the limits of
+     cultivation be reached much later.]
+
+     [Footnote 157-7: In France, between 1797 and 1847, the
+     average price of wheat did not rise at all. _Hipp. Passy_
+     mentions pieces of land which produced scarcely 12
+     hectolitres of wheat, but which now produce 20--an increased
+     yield of 170 francs, attended by an increase in the cost of
+     only 75 francs. (Journal des Economistes, 15 Oct., 1848.)
+     Moreover, it may be that a not unimportant part of modern
+     rises in the price of corn may be accounted for by the
+     better quality of the corn caused by higher farming. (_Inama
+     Sternbeg_, Gesch. der Preise, 10 seq.) Such facts, readily
+     explainable by _Ricardo's_ theory, remove the objection of
+     _Carey_, _Banfield_ and others, that the condition of the
+     classes who own no land has, since the middle ages,
+     unquestionably improved. Political Economy would be simply a
+     theory of human degradation and impoverishment, if the law
+     of rent was not counteracted by opposing causes. (_Roesler_,
+     Grundsaetze, 210.) According to _Berens_, Krit.
+     Dogmengeschichte, 213, the actual highness of rent is to be
+     accounted for by the antagonism between the "soil-law
+     (_Bodengesetz_) of the limited power of vegetation," and the
+     "progress of civilization" (but surely only to the extent
+     that the latter improves the art of agriculture). Thus, too,
+     _John Stuart Mill_, Principles, I, ch. 12; II, ch. 11, 15
+     seq.; III, ch. 4 seq.; IV, ch. 2 ff.]
+
+     [Footnote 157-8: Thus, for instance, drainage works which,
+     where properly directed, have paid an interest of from 25 to
+     70 per cent. per annum in England and Belgium on the capital
+     invested.]
+
+
+SECTION CLVIII.
+
+HISTORY OF RENT.--IN PERIODS OF DECLINE.
+
+If a nation's economy be declining, in consequence of war for instance,
+the disastrous influence hereof on rent may be retarded by a still
+greater fall in wages or in the profit on capital. But it can be hardly
+retarded beyond a certain point.[158-1] As a rule, the decline of rents
+begins to be felt by the least fertile and least advantageously situated
+land.[158-2] [158-3]
+
+     [Footnote 158-1: "The falling of rents an infallible sign of
+     the decay of wealth." (_Locke._) In England, in 1450, land
+     was bought at "14 years' purchase;" i. e., with a capital =
+     14 times the yearly rent paid, in 1470, at only "10 years'
+     purchase." (_Eden_, State of the Poor, III, App., I, XXXV.)
+     This was, doubtless, a consequence of the civil war raging
+     in the meantime. The American war (1775-82) depressed the
+     price of land in England to "23-1/4 years' purchase,"
+     whereas it had previously stood at 32. (_A. Young._) The
+     rent of land, in many places in France, declined from 10,000
+     to 2,000 livres, on account of the many wars during Louis
+     XIV.'s reign. (_Madame de Sevigne's_ Lettres, 25 Dec, 1689.)
+     Even in 1677, it was only one-half of its former amount
+     (_King_, Life of Locke, I, 129.) The whole Bekes county
+     (_comitat_) in Hungary was sold for 150,000 florins under
+     Charles VI.; after the unfortunate war with France.
+     (_Mailath_, Oesterreich, Gesch., IV, 523.) Compare
+     _Cantillon_, Nature du Commerce, 248. In Cologne, a new
+     house was sold in the spring of 1848 for 1,000 thalers, the
+     site of which alone had cost 3,000 thalers; and there are
+     six building lots which formerly cost over 3,000 thalers,
+     now valued at only 100 thalers. (_von Reden_, Statist.
+     Zeitschr., 1848, 366.) On the other hand, Napoleon's war
+     very much enhanced English rents (_Porter_, Progress of the
+     Nation, II, 1, 150 ff.), because it affected England's
+     national husbandry principally by hindering the importation
+     of the means of subsistence. (_Passy_, Journal des
+     Economistes, X, 354.)]
+
+     [Footnote 158-2: Thus the price of lands, in Mecklenburg,
+     between 1817 and 1827, fell 30 to 40 per cent. in the least
+     fertile quarters; in the better, from 15 to 20 per cent.
+     (_von Thuenen_, in _Jacob_, Tracts relating to the Corn
+     Trade, 40, 187.) _Per contra_, see Hundeshagen Landwirthsch.
+     Gewerbelehre, 1839, 64 seq., and _Carey_, Principles, I,
+     354.]
+
+     [Footnote 158-3: The average rent in England was, in 1815,
+     17s. 3d. In the counties, it was highest in Middlesex, 38s.
+     9d.; in Rutland, 38s. 2d.; Leicester, 27s. 3d.; lowest in
+     Westmoreland, 9s. 1d. In Wales, the average was 7s. 10d.;
+     highest in Anglesea, 19s.; lowest in Merioneth, 4s. 8d. In
+     Scotland the average was 5s. 1-1/2d.; highest, Midlothian,
+     24s. 6-1/2d.; lowest, Highland Caithness, Cromarthy,
+     Inverness and Rosse, from 1s. 1d. to 1s. 5d.; Orkneys,
+     8-1/2d.; Sutherland, 6d.; Shetlands, 3d. In Ireland, the
+     average was 12s. 9d.; highest in Dublin, 20s. 1-1/2d.;
+     lowest, Donegal, 6s. (_McCulloch_, Stat., I, 544 ff.;
+     Yearbook of general Information, 1843, 193.) In France,
+     _Chaptal_, De l'Industrie Fr., 1819, I, 209 ff., estimates
+     the average yield per _hectare_ at 28 francs; in the
+     Department of the Seine, 216; Nord, 69.56; Lower Seine,
+     67.85; in the upper Alps, 6.2; in the lower Alps, 5.99: in
+     the Landes, 6.25. While in the Landes, only 20 francs a
+     _hectare_ are frequently paid, the purchase price in the
+     neighboring Medoc is sometimes 25,000 francs. (Journal des
+     Economistes, Jan. 15, 1851.) In Belgium, the average price
+     of agricultural land is 52.46; in East Flanders, 53.19; in
+     Namur, 29.24. (_Heuschling_, Statistique, 77.)]
+
+
+SECTION CLIX.
+
+HISTORY OF RENT.--RENT AND THE GENERAL GOOD.
+
+We so frequently hear rent called the result of the monopoly[159-1] of
+land, and an undeserved tribute paid by the whole people to landowners,
+that it is high time we should call attention to the common advantage it
+is to all. There is evidently danger that, with the rapid growth of
+population, the mass of mankind should yield to the temptation of
+gradually confining themselves to the satisfaction of coarse, palpable
+wants; that all refined leisure, which makes life and the troubles that
+attend it worth enduring, and which is the indispensable foundation of
+all permanent progress and all higher activity, should be gradually
+surrendered. (See Sec. 145.) Here rent constitutes a species of reserve
+fund, which grows greater in proportion as these dangers impend by
+reason of the decline of wages and of the profit of capital, or
+interest.[159-2] Besides, precisely in times when rent is high, the sale
+and divisibility of landed estates act as a beneficent reaction against
+the monopoly of land, which is always akin to the condition of things
+created by rent.
+
+But it is of immeasurably greater importance that high rents deter the
+people from abusing the soil in an anti-economic way; that they compel
+men to settle about the centers of commerce, to improve the means of
+transportation, and under certain circumstances to engage in the work of
+colonization; while, otherwise, idleness would soon reconcile itself to
+the heaping together of large swarms of men.[159-3] The anticipation of
+rent may render possible the construction of railroads, which enable the
+land to yield that very anticipated rent.
+
+     [Footnote 159-1: "Rent is a tax levied by the landowners as
+     monopolists." (_Hopkins_, Great Britain for the last forty
+     Years, 1834.) For a very remarkable armed and successful
+     resistance of farmers in the state of New York to the claims
+     for rent of the Rensselaer family, represented by the
+     government, see _Wappaeus_ Nord Amerika, 734.]
+
+     [Footnote 159-2: _Malthus_, Additions to the Essay on
+     Population, 1817, III, ch. 10; compare also _Verri_,
+     Meditazioni, XXIV, 3. The Physiocrates call the landowners
+     _classe disponible_, since, as they may live without labor,
+     they are best adapted to military service, the civil
+     service, etc., either in person or by defraying the expenses
+     of those engaged in them. (_Turgot_, Sur la Formation etc.,
+     Sec. 15; Questions sur la Chine, 5.)]
+
+     [Footnote 159-3: Well discussed by _Schaeffle_, Theorie, 65,
+     72, 83. _Malthus_ considers the capital and labor expended
+     in agriculture more productive than any other, because they
+     produce not only the usual interest and wages, but also
+     rent. If, therefore, the manufacturing and commercial profit
+     of a country = 12 per cent., and the profit of capital
+     employed in agriculture = 10 per cent., a corn law which
+     compelled the capital engaged in manufactures and commerce
+     to be devoted to agriculture would be productive of
+     advantage to the national husbandry in general, if the
+     increase in rent should amount to about 3 per cent. (On the
+     Effects of the Corn Laws and of a Rise or Fall in the Price
+     of Corn on the Agriculture and the general Wealth of the
+     Country, 1815. The Grounds of an Opinion on the Policy of
+     Restricting the Importation of Foreign Corn, 1815.) Compare
+     _supra_, Sec. 55, and the detailed rectification in _Roscher_,
+     Nationaloekonomik des Ackerbaues, etc., Sec. 159 ff.]
+
+
+
+
+CHAPTER III.
+
+WAGES.
+
+
+SECTION CLX.
+
+THE PRICE OF COMMON LABOR.
+
+Like the price of every commodity, the immediate wages of common labor
+is determined by the relation of the demand and supply of labor. Other
+circumstances being the same, every great plague[160-1] or
+emigration[160-2] is wont, by decreasing the supply, to increase the
+wage's of labor; and a plague, the wages of the lowest kind of labor
+most.[160-3] And so, the increased demand, in harvest time, is wont to
+increase wages; and even day board during harvest time is wont to be
+better.[160-4] [160-5] In winter the diminished demand lowers wages
+again.[160-6] Among the most effective tricks of socialistic sophistry
+is, unfortunately, to caricature the correct principle: "labor is a
+commodity," into this other: "the laborer is a commodity."
+
+Moreover, common labor has this peculiarity, that those who have it to
+supply are generally much more numerous than those who want it; while
+the reverse is the case with most other commodities. Another important
+peculiarity of the "commodity" labor, is, that it can seldom be bought,
+without at the same time reducing the person of the seller to a species
+of dependence. Thus, for instance, the seller cannot be in a place
+different from that in which his commodity is. Hence a change in the
+person, etc. of the buyer very readily necessitates in the workman a
+radical change of life, and that the levelling adjustment of local
+excess and want is rendered so difficult in the case of this
+commodity.[160-7] Hence, it is that, if in the long run the exchange of
+labor against wages is to be an equitable one (Sec. 110), the master of
+labor must, so to speak, incorporate part of his own personality into
+it, have a heart for faithful workmen and thus attach them to
+himself.[160-8]
+
+     [Footnote 160-1: High rate of Italian wages after the plague
+     in 1348, but also many complaints of the indolence and
+     dissoluteness of workmen. (_M. Villani_, I, 2 ff., 57 seq.
+     _Sismondi_, Gesch. der ital. Republiken in Mittelalter, VI,
+     39.) In England, the same plague increased the wages of
+     threshers from an average of 1.7 d. in 1348, to 3.3 d. in
+     1349. Mowers received, during the 90 years previous, 1/12 of
+     a quarter of wheat per acre; in 1371-1390, from 1/7 to 1/6.
+     The price of most of their wants was then from 1/8 to 1/12
+     as high as in _A. Young's_ time, and wages 1/4 as high.
+     (_Rogers_, I, 306, 271, 691.) The great earthquake in
+     Calabria, in 1783, produced similar effects. (_Galanti_, N.
+     Beschreiburg von Neapel, I, 450.) Compare _Jesaias_, 13, 12.
+     On the other hand, depopulation caused by unfortunate wars
+     is not very favorable to the rate of wages; instance,
+     Prussia in 1453 ff., after the Polish struggle, and Germany,
+     after the Thirty Years' War.]
+
+     [Footnote 160-2: How much it contributes to raise wages that
+     workmen can, in a credible way, threaten to move to other
+     places, is illustrated by the early high wages and personal
+     freedom of sailors. Compare _Eden_, State of the Poor, I,
+     36. In consequence of the recent great emigration from
+     Ireland, the weekly wages of farm hands in that country was
+     57.4 per cent. higher than in 1843-4. In Connaught, where
+     the emigration was largest, it was 87 per cent. higher.
+     (London Statist. Journ., 1862, 454.)]
+
+     [Footnote 160-3: Compare _Rogers_, I, 276, and _passim_.]
+
+     [Footnote 160-4: And this in proportion as the uncertainty
+     of the weather causes haste. In England, the harvest doubles
+     wages. (_Eden._) In East Friesland, it raises it from 8-10
+     ggr. to 2 thalers sometimes (_Steltzner_); in the steppes of
+     southern Russia, from 12-15, to frequently 40-50 _kopeks_.
+     This explains why the country people who come into the
+     weekly market are anxious, during harvest time, to get rid
+     of their stocks as fast as possible. According to the
+     Statist. Journal, 1862, 434, 448, the average wages in
+     harvest and other times, amounted to:
+
+                           _In harvest time._  _Other times._
+     In Scotland for males,      18s. 7d.       12s. 11-1/2d.
+       "          "  females,    11s. 4d.        5s.  7d.
+     In Ireland   "  males,      12s. 9d.        6s. 11-1/2d.
+       "          "  females,     8s. 3d.        3s.  9d.
+       "          "  males,      15s. 4d.        7s.  1-1/4d.
+       "          "  females,     7s. 1-3/4d.    3s. 11d.
+
+     The reason why the wages of females rises more in harvest
+     time than the wages of males may be the same that in many
+     places in Ireland has made emigration more largely increase
+     the wages of women. (l. c., 454.) Every excess of workmen
+     depresses, and every scarcity of workmen enhances the wages
+     of the lowest strata relatively most.]
+
+     [Footnote 160-5: The wages of English sailors was usually
+     40-50 shillings a month. During the last naval war, it rose
+     to from 100 to 120, on account of the great demand created
+     by the English fleet. (_McCulloch_, On Taxation, 40.)]
+
+     [Footnote 160-6: The winter wages of German agricultural
+     laborers varies between 6.1 and 20 silver groschens; summer
+     wages between 7.9 and 27.5 silver groschens. _Emminghaus_,
+     Allg. Gewerbelehre, 81, therefore, advises that in winter
+     the meal time of workmen in the fields should be postponed
+     to the end of the day, and winter wages then made less low
+     than at present.]
+
+     [Footnote 160-7: _W. Thornton_, On Labour, its wrongful
+     Claims and rightful Dues, its actual, Present and possible
+     Future, 1869, II, ch. 1. _Harrison_, Fortnightly Review,
+     III, 50.]
+
+     [Footnote 160-8: Just as the husband binds himself in
+     marriage. While in concubinage there is apparent equality,
+     it costs the woman a much greater sacrifice than the man.]
+
+
+SECTION CLXI.
+
+WAGES OF LABOR.--THE MINIMUM OF WAGES.
+
+Human labor cannot, any more than any other commodity, be supplied, in
+the long run, at a price below the cost of production.[161-1] [161-2] The
+cost of production here embraces not only the necessary or customary
+means of subsistence of the workman himself, but also of his family;
+that is, of the coming generation of workmen. The number of the latter
+depends essentially on the demand for labor. If this demand be such that
+it may be satisfied by an average of six children to a family, the rate
+of wages must be such as to support the workman himself and to cover the
+cost of bringing up six children.[161-3] Where it is customary for the
+wife and child, as well as for the father, to work for wages, the father
+does not need to earn the entire support of the family, and hence
+individual wages may be smaller.[161-4] But if it were to fall below the
+cost mentioned above, it would not be long before increased mortality
+and emigration, and a diminution of marriages and births would produce a
+diminution of the supply; the result of which would be, if the demand
+remained the same, a renewed rise of wages.
+
+Conversely, it would be more difficult for the rate of wages to be
+maintained long much above that same cost, in proportion as the
+gratification of the sexual appetite was more generally considered the
+highest pleasure of sense, and the love of parents for their children as
+the most natural human duty. As Adam Smith says, where there is a great
+demand for men, there will always be a large supply of them.[161-5]
+
+     [Footnote 161-1: Compare _Engel's_ beautiful lecture on the
+     cost of labor to itself (_Selbstkosten_ = _self-cost_),
+     Berlin, 1866.]
+
+     [Footnote 161-2: _Wolkoff_ zealously and rightly argues,
+     that the minimum wages is not the _taux naturel_ of wages.
+     (Lectures, 118 ff., 284.) _von Thuenen_ also divides wages
+     into two component parts--that which the workman must lay
+     out in his support in order to continue able to work, and
+     that which he receives for his actual exertion. (Isolirter
+     Staat., II, 1, 92 seq.)]
+
+     [Footnote 161-3: _Gasparin_ distinguishes five periods in
+     the career of a workman generally: a, he is supported by his
+     parents; b, he supports himself and is in a condition to
+     save something; c, he marries, and supports his children
+     with trouble; d, the children are able to work, and the
+     father lives more comfortably; e, his strength and resources
+     decline. (_Villerme_, Tableau de l'Etat physique et moral
+     des Ouvriers, 1840, II, 387.)]
+
+     [Footnote 161-4: _Cantillon_, Nature du Commerce, etc.,
+     1755, is of opinion that a day laborer, to bring up two
+     children until they are grown, needs about as much as he
+     does for his own support; and that his wife may, as a rule,
+     support herself by her own work. (42 ff.) In Germany, it is
+     estimated that, in the case of day laborers, a woman can
+     earn only from 1/3 to 1/2 of what her husband does; mainly
+     because she is so frequently incapacitated for work by
+     pregnancy, nursing, etc. (_Rau_, Lehrbuch, I, Sec. 190.) In
+     France, in 1832, a man working in the fields earned, on an
+     average, 1-1/4 francs a day, the wife 3/4 of a franc (200
+     days to the year), the three children 38/100 francs (250
+     days to the year), an aggregate of 650 francs per annum.
+     (_Morogues._) In England, the average amount earned in the
+     country was for males, per annum, L27 17s.; (munications
+     relative to the Support and Maintenance of the Poor, 1834,
+     p. LXXXVIII.) The wife of an English field hand, without
+     children, earns 1/3 more than one with children. In the case
+     of mothers, a difference of fewer or more children is
+     unnoticeable in the effects on wages. (London Statist.
+     Journal, 1838, 182.) In the spinning factories in
+     Manchester, in 1834, children between 9 and 10 years of age
+     were paid, weekly, from 2s. 9d. to 2s. 10d.; between 10 and
+     12, from 3s. 6d. to 3s. 7d.; between 12 and 14, from 5s. 8d.
+     to 5s. 9d.; between 14 and 16, from 7s. 5d. to 7s. 6d.
+     (Report of the Poor Commissioners, 204.) Those manufactures
+     which require great physical strength, like carpet and
+     sail-cloth weaving, and those carried on in the open air and
+     in all kinds of weather, allow of no such family competition
+     and debasement of wages. (_Senior_ in the Report of the
+     parliamentary Committee on Hand Weavers, 1841.)]
+
+     [Footnote 161-5: Similarly, _J. Moeser_, Patriot. Phant., I,
+     40. _Adam Smith_ infers from the following symptoms in a
+     country that wages are higher there than the indispensable
+     minimum, viz.: if wages in summer are higher than in winter,
+     since it is seldom that enough is saved in summer to satisfy
+     the more numerous wants of winter; if wages vary less from
+     year to year and more from place to place than the means of
+     subsistence, it they are high even where the means of
+     subsistence are cheapest. (Wealth of Nat., I, ch. 8.)]
+
+
+SECTION CLXII.
+
+COST OF PRODUCTION OF LABOR.
+
+The idea conveyed by the expression necessaries of life is, within
+certain limits, a relative one. In warm countries, a workman's family
+needs less clothing, shelter, fuel and even food[162-1] than in cold
+countries. This difference becomes still more striking when the warm
+countries possess absolutely cheaper food as, for instance, rice,
+Turkish wheat, bananas etc. Here, evidently, other circumstances being
+the same, the rate of wages may be lower.[162-2] The cultivation of the
+potato has operated in the same direction; since an acre of land planted
+with potatoes yields, on an average, twice as much food as the same acre
+planted with rye.[162-3] In France, two-thirds of the population lived
+almost without animal food, on chestnuts, Indian corn, and potatoes
+(_Dupin_), while in England, malt, hops, sugar, brandy, tea, coffee,
+tobacco, soap, newspapers, etc. are described as "articles chiefly used
+by the laboring classes." (_Carey_.)
+
+The standard of decency of the working class also has great influence
+here. The use of blouses in Paris has nothing repulsive, nor that of
+wooden shoes in many of the provinces of France, nor the absence of
+shoes in lower Italy; while the English workman considers leather shoes
+indispensable, as he did only a short time ago a cloth coat. Compare
+_infra_, Sec. 214.[162-4]
+
+     [Footnote 162-1: Explained since _Liebig's_ time by the fact
+     that a part of food is consumed to preserve animal heat:
+     means of respiration in contradistinction to means of
+     nutrition. Recent research has shown that in cold weather
+     more urea and also more carbonic acid are given off; hence
+     the means of supplying this deficit should be greater in
+     cold weather than in warm. This more rapid transformation is
+     wont, when nutrition is sufficient, to be accompanied by
+     more energetic activity. (_Moleschott_, Physiologie der
+     Nahrungsmittel, 1850, 47, 50, 83.)]
+
+     [Footnote 162-2: This is opposed in part by the fact that a
+     hot climate induces indolence, and that therefore he needs a
+     greater incentive to overcome his disposition to idleness.
+     Thus, in the cooler parts of Mexico, the rate of wages was
+     26 sous a day, in the warmer, 32 sous. (_Humboldt_, N.
+     Espagne, III, 103.)]
+
+     [Footnote 162-3: According to _Engel_, Jahrbuch fuer Sachsen,
+     I, 419, on acres similarly situated and under similar
+     conditions, the lowest yielded:
+
+                _Watery contents  _Watery contents
+                   included._        excluded._
+
+     Of wheat,      1,881 lbs.       1,680 lbs.
+      " rye,        1,549  "         1,404  "
+      " pease,      1,217  "         1,095  "
+      " potatoes,  21,029  "         5,257  "
+
+     The dry substance of these products yielded:
+
+              _Azotized                  _Mineral
+             Substance._    _Fecula._     Matter._
+
+     Wheat,      282 lbs.    879 lbs.     49 lbs.
+     Rye,        243  "      661  "       34 lbs.
+     Pease,      309  "      431  "       33 lbs.
+     Potatoes,   525  "    3,785  "      178 lbs.
+
+     In Saxony, from 1838 to 1852, the average prices stood as
+     follows:
+
+                               _Of Rye._ _Of Wheat._ _Of Potatoes._
+
+     One lb. of dry substance,      1       1.28           .95
+     One lb. of protein substance,  1       1.11          1.78
+     One lb. of fecula,             1       1.14          0.72
+
+     (loc. cit.) The high price of protein in wheat depends
+     probably on the more agreeable appearance and pleasanter
+     taste of wheat flour; the still higher price of potato
+     protein on the exceedingly easy mode of its preparation.]
+
+     [Footnote 162-4: As regards food alone, the cost of the
+     support of a plowman on Count Podewil's estate, reduced by
+     _Rau_, Lehrbuch, Sec. 191, to the unit of rye, is annually
+     1,655 lbs. of rye. According to _Koppe_, it is 1,952 lbs.;
+     to _Block_, 2,300 lbs.; to _Kleemann_, from 1,888 to 2,552
+     lbs.; to _Moellenger_, 2,171 lbs. The first three estimate
+     the cost in meat at 78, 160 and 60 pounds. Compare _Block_,
+     Beitr. Z. Landgueterschaetzungskunde, 1840, 6. Exhaustive
+     estimates for all Prussian governmental districts in _von
+     Reden_, Preussische Erwerbs, und Verkehrsstatistik, 1853, I,
+     177 ff., according to which the requirement, per family,
+     varies between 71 thalers in Gumbinnen and 204 thalers in
+     Coblenz, the average being 105 thalers. According to more
+     recent accounts, a laborer's family in East Prussia, gangmen
+     not included, get along very well on 177 thalers per annum.
+     (_von der Goltz_, Laendl. Arbeiterfrage, 1872, 9 ff.) In
+     Mecklenburg, omitting _Hofgaenger_, on 183 thalers. (Ann.
+     des. patr. Vereins, 1865, No. 26.)
+
+     The necessary outlay of the family of an agricultural day
+     laborer in England, in 1762, was estimated as follows: for
+     bread and flour, L6 10s. per annum; for vegetables and
+     fruit, L1 1-2/3s.; for fuel, light and soap, 2-9-5/6s.; for
+     milk, butter and cheese, L1 1-6-5/6s.; for meat, L1 6s.; for
+     house-rent, 1-6s.; for clothing, bedding, etc., 2-16-1/3s.;
+     for salt, beer and colonial wares, 1-16-5/6s.; for medicine,
+     expenses attending confinement of wife, etc., 1-6-1/2s. (_J.
+     Wade_, History of the middle and working Classes, 1853,
+     545.) Concerning 1796, compare _Sir F. M. Eden_, State of
+     the Poor, I, 660, 1823; _Lowe_, on the present Condition of
+     England. Compare on the receipts and expenses of ten working
+     families in and about Muehlhausen, the tables in the Journal
+     des Economistes, October, 1861, 50; and further
+     _Ducpetiaux_, Budgets economiques des Classes ouvrieres en
+     Belgique, 1855. According to _Playfair_ in _Knop_,
+     Agriculturchemie, I, 810, ff., different classes of grown
+     men need daily food.
+
+     ==================+=========+========+========+========+========
+        GRAMMES.       |  _1._   |  _2._  |  _3._  |  _4._  |  _5._
+     ------------------+---------+--------+--------+--------+--------
+     Plastic material, |  56.70  |  70.87 | 119.07 | 155.92 | 184.27
+     Fat,              |  14.70  |  28.35 |  51.03 |  70.87 |  70.87
+     Starch,           | 340.20  | 340.20 | 530.15 | 567.00 | 567.00
+     ==================+=========+========+========+========+========
+
+     Here 1 stands for a convalescent who can bear only enough to
+     preserve life; 2, the condition of rest; 3, moderate motion
+     of from 5 to 6 English miles' walk daily; 4, severe labor =
+     a walk of 20 English miles daily; 5, very severe labor = to
+     a day's walk of 14 English miles, with a load weighing 60
+     lbs. If the fat be given in terms of starch, the aggregate
+     need of both substances in the case of 1 is 6.6 times as
+     great as the need of plastic substance; in the case of 2, 3,
+     4, and 5, respectively 5.7, 5.2, 4.8 and 4.0 times as much.
+
+     A Dutch soldier doing garrison duty receives daily, in times
+     of peace, 0.333 kilogrammes of wheat flour, 0.125 of meat,
+     0.850 of potatoes, 0.250 of vegetables, containing in the
+     aggregate 60 grammes of albumen. In forts, where the service
+     is more severe, he receives 0.50 kilogrammes of wheat flour,
+     0.06 of rice or groats, with an aggregate amount of 116
+     grammes of albumen. (_Mulder_, Die Ernaehrung in ihrem
+     Zusammenhange mit dem Volksgeiste, uebersetzt _von
+     Molecshott_, 1847, 58 seq.) According to the researches of
+     Dr. Smith, in order to avoid the diseases caused by hunger,
+     a man needs, on an average, to take 4,300 grains of carbon
+     and 200 grains of nitrogen in his daily food; a woman 3,900
+     grains of carbon and 180 grains of nitrogen. In 1862, the
+     workmen in the famishing cotton industries of Lancashire
+     were actually reduced to just about this minimum. (_Marx_,
+     Kapital, I, 642.) Death from starvation occurs in all
+     vertebrates when the loss of weight of the body, produced by
+     a want of food, amounts to between two-fifths and one-half
+     of what it was at the beginning of the experiment.
+     (_Chossat_, Recherches experimentales sur l'Inanition, 184,
+     3.)]
+
+
+SECTION CLXIII.
+
+WAGES OF LABOR.--POWER OF THE WORKING CLASSES
+OVER THE RATE OF WAGES.
+
+In this way, the working classes hold in their own hands one of the
+principal elements which determine the rate of wages; and it is wrong to
+speak of an "iron law" which, under the control of supply and demand,
+always reduces the average wages down to the means of subsistence.[163-1]
+For the moment, indeed, not only individual workmen, but the whole
+working class is master of the supply of its commodity only to a very
+small extent; since, as a rule, the care for existence compels it to
+carry, and that without interruption, its whole labor-power to market.
+But it is true that the future supply depends on its own will; since,
+with an increase or decrease in the size of the families of workingmen,
+that supply increases or diminishes. If, therefore, by a favorable
+combination of circumstances, wages have risen above the height of
+urgent necessity, there are two ways open to the working class to take
+advantage of that condition of things. The workman either raises his
+standard of living, which means not only that his necessary wants are
+better satisfied, his decencies increased and refined, but also and
+chiefly, that the intellectual want of a good prospect in the future,
+which so particularly distinguishes the honorable artisan from the
+proletarian is taken into consideration. And it is just here that a
+permanent workingmen's union, which should govern the whole class, might
+exert the greatest influence. Their improved economic state can be
+maintained only on condition that the laboring class shall create
+families no larger than they hope to be able to support consistently
+with their new wants.[163-2]
+
+Or, the laboring class continues to live on as before, from hand to
+mouth, and employ their increased resources to gratify their sexual
+appetite earlier and longer than before, thus soon leading to an
+increase of population.
+
+The English took the former course in the second quarter of the last
+century, when English national economy received a powerful impetus, and
+the large demand for labor rapidly enhanced the rate of wages. The
+Scotch did in like manner a generation later. The second alternative was
+taken by the Irish, when the simultaneous spread of the cultivation of
+the potato[163-3] and the union with England, at the beginning of the
+nineteenth century, gave an extraordinary extension to their resources
+of food. While the population of Great Britain, between 1720 and 1821,
+did little more than double, the population of Ireland increased from
+2,000,000 to nearly 7,000,000 between 1731 and 1821. No wonder,
+therefore, that the average wages of labor was twenty to twenty-four
+pence per day in the former, and in the latter only five pence.
+(_MCCulloch._)[163-4]
+
+Naturally enough, this difference of choice by the two peoples is to be
+explained by the difference in their previous circumstances. The Irish
+people, robbed by violence of their own higher classes, and, therefore,
+and on this account precisely, almost entirely destitute of a middle
+class, had lost the check on increase they possessed in the middle ages,
+without having as yet assimilated to themselves the checks which come
+with a higher stage of culture. Their political, ecclesiastical and
+social oppression allowed them no hope of rising by temporary sacrifices
+and energetic efforts permanently to a better condition as citizens or
+gentlemen. Only the free man cares for the future. Hence, the sexual
+thoughtlessness and blind good nature, the original tendencies of the
+Irish people, necessarily remained without anything to counterbalance
+them. It always supposes a high degree of intelligence and
+self-restraint among the lower classes, when an increase in the
+thing-value, or the real value of wages, does not produce an increase in
+the number of workmen, but in their well-being. The individual is too
+apt to think that it matters little to the whole community whether he
+brings children into the world or not, a species of egotism which has
+done most injury to the interests in common of mankind. As a rule, it
+requires a great and palpable enhancement of wages to make workmen, as a
+class, raise their standard of living.[163-5] [163-6]
+
+     [Footnote 163-1: Compare _Lassalle_, Antwortschreiben an das
+     Central Comite zur Berufung eines allg. deutschen
+     Arbeitercongresses, 1863, 15; also _Turgot_, sur la
+     Formation etc., Sec. 6. When _Lassalle_ says that when a varied
+     standard of living has become a national habit it ceases to
+     be felt as an improvement, he says what is in a certain
+     sense true. But is the man to be pitied who, absolutely
+     speaking, is getting on well enough; relatively speaking,
+     better off than before; but who is only not better off than
+     other men?]
+
+     [Footnote 163-2: A case in Holstein, in which, in the first
+     half of the eighteenth century, the serfs of a hard master
+     conspired together not to marry, and thus soon forced him to
+     sell his estate. (_Buesch_, Darstellung der Handlung, V, 3,
+     II.)]
+
+     [Footnote 163-3: On the otherwise remarkable economic
+     advance in Ireland about 1750, see _Orrey_, Letters
+     concerning the Life and Writings of Swift, 1751, 127;
+     _Anderson_, Origin of Commerce, a., 1751.]
+
+     [Footnote 163-4: Compare especially _Malthus_, Principles,
+     ch. 4, sec. 2. How little Adam Smith dreamt of this may be
+     best seen in I, 115, Bas. Recently, the average wages per
+     week amounted in England to 22-1/2s., in Scotland to
+     20-1/2s., in Ireland to 14-3/4s. (_Levi_, Wages and Earnings
+     of the working Classes, 1866.)]
+
+     [Footnote 163-5: Thus the unheard of long series of
+     excellent harvests in England, between 1715 and 1765,
+     contributed very largely to this favorable transformation.
+     Day wages expressed in wheat, between 1660 and 1719,
+     amounted on an average to only about 2/3 of a peck; between
+     1720 and 1750, to an entire peck. In the fifteenth century,
+     a similar series of good harvests contributed very much to
+     the flourishing condition of the "yeomanry." Under Henry
+     VII., workmen earned from two to three times as much corn as
+     they did a century later. And so in France, the great
+     Revolution at the end of the eighteenth century, by setting
+     free a vast quantity of hitherto bound-up force, enhanced
+     the productiveness of the entire economy of the nation, and
+     made the division of the national income more nearly equal.
+     There is an essential connection here between the rapidity
+     of the transition and the facts, that the habits of
+     consumption of the working class received a powerful
+     impulse, and that population increased much less rapidly
+     than the national income. Compare _John Stuart Mill_,
+     Principles, II, ch. 11, 2. In our own days again, English
+     workmen had a splendid opportunity to raise their standard
+     of life. Emigration to Australia, etc. preponderated over
+     the natural increase of population to such an extent that,
+     in 1852, for instance, only 217,000 more human beings were
+     born in England and Wales than died, and 368,000 emigrated.
+     At the same time, exports increased: in 1849, they were
+     L63,000,000; in 1850 L71,000,000; about the end of 1853,
+     something like L90,000,000.
+
+     This golden opportunity was used by the English laboring
+     classes to both largely multiply marriages and to enhance
+     the rate of wages. The number of marriages contracted in
+     England yearly, from 1843 to 1847, was 136,200; from 1853 to
+     1857, 159,000. The number of births annually, from 1843 to
+     1847, was 544,800; from 1853 to 1857, 640,400. And wages, in
+     a number of industries, rose, between 1839 and 1859, from
+     about 18 to 24 per cent. (Quarterly Review, July, 1860, 86),
+     while the prices of most of the necessaries of life
+     declined. That, in the same time, the condition of English
+     laborers was elevated, both intellectually and morally, is
+     proved by many facts cited in _Jones' and Ludlow's_ work on
+     the social and political condition of the laboring classes
+     in England. In Germany, the recent establishment of peace on
+     a firm footing and the French war contributions have given
+     the country an impulse which might be taken advantage of by
+     the laboring class with the happiest results if they would
+     accustom themselves to more worthy wants and at the same
+     time preserve their accustomed industry.]
+
+     [Footnote 163-6: The cheapening of the necessaries of life,
+     experience shows, is more likely to lead to an increase of
+     population; that of luxuries, to a raising of the standard
+     of life or of comfort.]
+
+
+SECTION CLXIV.
+
+WAGES.--COST OF PRODUCTION OF LABOR.
+
+As the cheapening of the means of subsistence, when the circle of wants
+of the laboring class has not correspondingly increased, leads to a
+decline of wages, so an enhancement of their price must, when wages are
+already so low as only to be able to satisfy indispensable wants,
+produce an increase in the rate of wages. The transition in the former
+case is as pleasing as in the latter it is replete with the saddest
+crises.[164-1] The slower the rise in the price of the means of
+subsistence is, the more it is to be feared that the working classes
+will seek to meet it, not by emigration or by a diminished number of
+marriages, but by decreasing the measure of their wants, the
+introduction of a poorer quality of food, etc.[164-2]
+
+However, all this is true only of permanent changes in the average price
+of the means of subsistence, such as are produced, for instance, by the
+development of agriculture, by taxation etc. Transitory fluctuations,
+such as result, for instance, from a single good or bad harvest, cannot
+have this result.[164-3] It is, in poor countries at least, one of the
+worst effects of a bad harvest, that it tends to positively lower the
+rate of wages. A multitude of persons who would otherwise be able to
+purchase much labor are now deterred from doing so, by the enhancement
+of the price of food.[164-4] On the other hand, the supply increases:
+many men who before would not work even for money, see themselves now
+compelled to do so. Those who have been workmen hitherto are compelled
+by want to make still greater exertions.[164-5]
+
+In very cheap years, all this is naturally reversed.[164-6]
+
+     [Footnote 164-1: According to _McCulloch_, Edition of _Adam
+     Smith_, 472, the food of a day laborer's family constitutes
+     between 40 and 60 per cent. of their entire support. In the
+     case of Prussian field hands, it is generally 54 per cent.
+     greatest in the province of Saxony, viz., 58 per cent. and
+     lowest in Posen, 43 per cent. Compare _Rau_, Lehrbuch, I, Sec.
+     191. This may serve as a point of departure, from which to
+     measure the influence of a given enhancement of the price of
+     corn. In opposition to _Buchanan_ (Edition of _Adam Smith_,
+     1817, 59), who had denied the influence of the price of the
+     means of subsistence on the rate of wages, see _Ricardo_,
+     Principles, ch. 16.]
+
+     [Footnote 164-2: How easily English farmers have accustomed
+     themselves to the consequences of momentary calamities, may
+     be seen from _John Stuart Mill_, Principles, II, ch. 11, 5
+     seq.; _Thornton_, Population and its Remedy, 1846, passim.
+     _Malthus_, Principles, sec. 8, shows in opposition to
+     _Ricardo_, Principles, ch. 8, that it is not all one to the
+     laboring classes whether their wages rise while the price of
+     the means of subsistence remains the same, or whether the
+     rate of wages remaining nominally the same, the commodities
+     to be purchased decline in price. If for instance,
+     potato-food, physiologically considered, was just as good as
+     flesh-food and wheat bread, yet an unmarried workman or a
+     father with a number of children below the average would be
+     able to save less from the former for the reason that it
+     possesses less value in exchange. (Edinburg Rev., XII, 341.)
+     Thus, e. g., in Ireland, between _A. Young_ and _Newenham_
+     (1778-1808), the rate of wages increased more than the price
+     of potatoes, but all other means of subsistence in a still
+     greater ratio. (_Newenham_, A view of Ireland, 1808.)
+     Compare _Malthus_, On the Policy of Restricting the
+     Importation of foreign Corn, 1815, 24 ff.; contra.
+     _Torrens_, on the Corn trade, 1820, 374 ff.]
+
+     [Footnote 164-3: Compare _Garve_ in _MacFarlan_, On
+     Pauperism, 1785, 77. Thus, in the United States, the same
+     quantities of coffee, leather, pork, rice, salt, sugar,
+     cheese, tobacco, wool, etc., could be earned in 1836 by 23.5
+     days' labor; in 1840, by 20.75; in 1843, by 14.8; in 1864,
+     by 34.6. (_Walker_, Science of Wealth, 256.)]
+
+     [Footnote 164-4: The person who formerly consumed perhaps
+     four suits of clothes in a year now limits himself to two,
+     and forces the tailor to dismiss one journeyman. In Bavaria,
+     the dear times, 1846-47, and probably also the disturbances
+     of 1848-49, caused officials, pensioners, annuitants and
+     professional men to discharge one-tenth of the female
+     domestics they employed in 1840. (_Hermann_, Staatsw.
+     Unters, II, Aufl., 467.)]
+
+     [Footnote 164-5: The labor of digging during the time of
+     scarcity in England was paid one-third of the price usually
+     paid in good years. (_Porter_, Progress of the Nation, III,
+     14, 454.) On the Slavic portions of Silesia, see
+     _Hildebrand's_ Jahrb., 1872, I, 292. According to _Rogers_,
+     I, 227 ff., 315 ff., and the table of prices in the appendix
+     to _Eden_, State of the Poor, the price in England of a
+     quarter of wheat and a day's wages was, in--
+
+          1287,      2s.  10-1/4d.     3d.
+          1315,      14s. 10-7/8d.     3d.
+          1316,      15s. 11-7/8d.     3-7/8d.
+          1392,       3s.  2-5/8d.     5d.
+          1407,       3s.  4d.         3d.
+          1439,  8s.-26s.  8d.         4-1/2d.
+          1466,       5s.  8d.       4-6d.
+          1505,       6s.  8d.         4d.
+          1575,      20s.              8d.
+          1590,      21s.            3-6d.
+          1600,                       10d.]
+
+     [Footnote 164-6: _Petty_, Several Essays on Political
+     Arithmetic, 133 ff. _Adam Smith_, Wealth of Nat., I, ch. 8.
+     _Ricardo_, Principles, ch. 9. In Hesse, in consequence of a
+     series of many rich harvests from 1240 to 1247, no servants
+     could be had at all, so that the nobility and clergy were
+     obliged to till their own lands. (_Anton_, Gesch. der
+     deutschen Landwirthschaft, 111, 209.)]
+
+
+SECTION CLXV.
+
+WAGES.--THE DEMAND FOR LABOR.
+
+The demand for labor, as for every other commodity, depends, on the one
+hand, on the value in use of it, and on the other, on the purchaser's
+capacity to pay for it (his solvability), These two elements determine
+the maximum limit of wages, as the means of support considered
+indispensable by the workmen determine the minimum. There are
+circumstances conceivable under which the rise in wages might entirely
+eat up rents; but there must always be a portion of the national income
+reserved to reward capital (its profit). If wages were to absorb the
+latter also, the mere owner of capital would cease to have any interest
+in the progress of production. Capital would then be withdrawn from
+employment and consumed.[165-1] Obviously, no man engaged in any
+enterprise can give more as wages to his workmen than their work is
+worth to him.[165-2] Hence the additional product in any branch of
+industry, due to the labor of the workman last employed, has a
+controlling influence on the rate of the wages which can be paid to his
+fellow workmen. If the additional products of the workmen successively
+last employed constitute a diverging series,[165-3] the last term in the
+series is the natural expression of the unsurpassable maximum of wages;
+if they constitute a converging series, men the employer can pay the
+last workman higher wages than the additional product due to him;
+provided, however, that the reduction which is to be expected in the
+case of the workmen previously employed to the same level still leaves
+him a sufficiently high rate of profit.[165-4] Hence the growing skill
+of a workman, in and of itself, makes an increase of his wages
+possible;[165-5] while, conversely, if he can be replaced by capital,
+which always relatively decreases the value in use of his labor, there
+is a consequent pressure on his wages.
+
+     [Footnote 165-1: _Storch_, Handbuch, I, 205 seq.]
+
+     [Footnote 165-2: Higher wages promised, for instance, as a
+     reward for saving a human life or some other very precious
+     thing in great danger of being destroyed. In the case of
+     material production, labor is worth to the party engaged in
+     the enterprise, at most, as much as the price of the product
+     after the remaining cost of reproducing it is deducted.]
+
+     [Footnote 165-3: Possibly in consequence of a better
+     division of labor or of some other advance made in the
+     technic arts.]
+
+     [Footnote 165-4: Thus, for instance, in harvesting potatoes,
+     if, after they have been ploughed up, only those nearest the
+     surface are collected, a laborer can gather over thirty
+     Prussian _scheffels_ in a day. But the fuller and completer
+     the gathering of potatoes desired is, the smaller will be
+     the product of one workman and of one day's labor. If,
+     therefore, a man wants to gather even the last bushel in a
+     potato field of 100 square rods, so much labor would be
+     required to accomplish it that the workman would not gather
+     enough to feed him during his work, to say nothing of
+     supplying his other wants. Supposing that 100 _scheffels_ of
+     potatoes had grown on 100 square rods, and that of these
+     were harvested--
+
+     _When the number of      _Then the additional yield
+      men employed in          obtained by the
+      gathering them was_      last workman employed is_
+
+          4,    80   scheffels,
+          5,    86.6     "        6.6 scheffels.
+          6,    91       "        4.4     "
+          7,    94       "        3       "
+          8,    96       "        2       "
+
+     (_von Thuenen_, Der isolirte Staat, II, 174 ff.)]
+
+     [Footnote 165-5: In Manchester, in 1828, the wages paid for
+     spinning one pound of cotton yarn, No. 200, was 4s. 1d.; in
+     1831, only from 2s. 5d. to 2s. 8d. But, in the former year,
+     the spinner worked with only 312 spools; in the latter, with
+     648; so that his wages increased in the ratio of 1274 to
+     1566. (_Senior_, Outlines.)]
+
+
+SECTION CLXVI.
+
+WAGES.--PRICE OF COMMON LABOR.
+
+In the case of a commodity as universally desired as human labor is, the
+idea of the purchasers' capacity to pay (solvability) must be nearly
+commensurate with the national income, or to speak more correctly, with
+the world's income.[166-1] In regard to the different kinds of labor,
+and especially to common labor, it is evident that the different kinds
+of consumption require very different quantities of them. Here,
+therefore, we depend on the direction which national consumption takes,
+and this in turn is most intimately related to the distribution of the
+national income.[166-2] If all workmen were employed in nothing but the
+production of articles consumed by workmen, the rate of wages would be
+determined almost exclusively by the ratio between the number of the
+working population and the amount of the national income. But, if this
+were the case, landowners and capitalists would be obliged to live just
+as workmen do, and their highest luxury would have to consist in feeding
+idlers. (Sec. 226). The effect must be much the same, when the wealthy are
+exceedingly frugal and employ their savings as rapidly as possible in
+the employment of common home labor; while, on the other hand, the
+exportation of wheat, wood, and other articles, which the working
+classes consume, in exchange for diamonds, lace, champagne, diminishes
+the efficient demand for common labor in a country.[166-3]
+
+The assumption frequently made, that the demand for labor depends on the
+size of the national capital, is far from exact.[166-4] Thus, for
+instance, every transformation of circulating into fixed capital,
+especially when the labor used in effecting this transformation is
+ended, diminishes the demand for other labor. That principle is not
+unconditionally true, even in the case of circulating capital. Thus, for
+instance, the rate of wages is wont to be raised by the transfer of
+capital from such businesses as require little labor into such as
+require much.[166-5] Only that part of circulating capital can have any
+weight here which is intended, directly or indirectly, for the purchase
+of labor and for the purchase of each kind of labor in particular.[166-6]
+The capital of the employer is, by no means, the real source[166-7] of the
+wages of even the workmen employed by him, It is only the immediate
+reservoir through which wages are paid out, until the purchasers of the
+commodities produced by that labor make good the advance, and thereby
+encourage the undertaker to purchase additional labor. Correlated to this
+is the fact, that other circumstances being the same, those workmen usually
+receive the highest wages who have to do most immediately with the
+consumer.[166-8]
+
+     [Footnote 166-1: _Senior_ denies this. Let us suppose that
+     agriculture in Ireland employs on every 200 acres ten
+     working men's families, one-half of whom are used to satisfy
+     the aggregate wants of the working people, and the other
+     half in the production of wheat to be exported to England.
+     If now the English market requires meat and wool instead of
+     wheat, the Irish landowner will, perhaps, find it
+     advantageous, of the ten laboring families, to employ one in
+     stock raising, a second in obtaining food, etc. to support
+     the laborers, and to discharge all the others. If, then, the
+     increased net product is employed in the purchase of other
+     Irish labor, all goes on well enough; but if, instead of
+     this, the landowners should import articles of English
+     manufacture, the demand for labor in Ireland would doubtless
+     decrease, notwithstanding the increase of its income.
+     (Outlines, I, 154.) _Senior_ here overlooks two things:
+     first, that in the supposed case, if eight-ninths of Irish
+     laborers are thrown out of employment, spite of the
+     increased income of the owners of landed estates, Ireland's
+     national income is on the whole probably diminished (Sec. 146),
+     and secondly, that, possibly, the demand for labor in
+     England experiences a greater increase than the decrease in
+     Ireland; since, with the addition to the world-income, there
+     would be an increase in the world-demand for labor.]
+
+     [Footnote 166-2: Compare _Hermann_, Staatswirthsch.
+     Untersuch., 280 ff. Earlier yet, _Malthus_, Principle of
+     Population, II, ch. 13.]
+
+     [Footnote 166-3: Thus, _Thomas More_, Utopia, 96, 197,
+     thinks that if every one was industrious and engaged in only
+     really useful business, no one would need to fatigue himself
+     very much; while, as it is now, the few real laborers there
+     are wear themselves out in the service of the vanity of the
+     rich, are poorly fed and worked exceedingly hard.]
+
+     [Footnote 166-4: _McCulloch_, Principles, 104, seq. 2d ed.]
+
+     [Footnote 166-5: Thus, in France, during the continental
+     blockade, distant ocean commerce declined, and manufactures
+     flourished instead. (_Lotz_, Revision, III, 134.)]
+
+     [Footnote 166-6: Thus, _Adam Smith_ divides "the funds
+     destined for the payment of wages" into two kinds: the
+     excess of employers' income over their own maintenance, and
+     the excess of their capital over the demands of their own
+     use of it. (Wealth of Nat, I, ch. 8.) _Senior_ considers it
+     a self-evident principle, that the rate of wages depends on
+     the size of the "fund for the maintenance of laborers
+     compared with the number of laborers to be maintained."
+     (Three Lectures on the Rate of Wages, 1830, Outlines, 153,
+     ff.) But what determines the quota of the aggregate national
+     wealth and national income that is to constitute this fund?
+     _Carey_, Rate of Wages, 1835, has a very exhaustive
+     commentary on _Senior_.]
+
+     [Footnote 166-7: _Watts_, Statist. Journal, 1861, 500,
+     asserts altogether too generally that an "increase of profit
+     increases the future wages-fund, and consequently the demand
+     for laborers;" and that therefore every new machine useful
+     in manufactures must also be of use to the laboring class.
+     The employer engaged in any enterprise who has grown richer,
+     _can_ pay more wages, but whether he _will_ do it depends on
+     other causes, and even his ability to do it, in the long
+     run, on his customers. When _John Stuart Mill_, Principles,
+     I, ch. 5, 9, says that only the capital which comes into the
+     hands of labor before the completion of their work
+     contributes to their support, it is as if he were to explain
+     the phenomena of prices by demand and supply, and nothing
+     else, denying the influence of the cost of production, of
+     value in use, and of the deeper determining causes upon
+     them. (_Supra_, Sec. 107, note 1.) Compare _Roesler_, Z. Kritik
+     der Lehre vom Arbeitslohn, 1861, 104 ff. In England, the
+     superstition which to a great extent attached to the idea
+     "wages-fund," was first questioned by _F. Longe_, Refutation
+     of the Wages-Fund Theory of modern Political Economy, 1866.
+     See also _Thornton_, On Labour, II, ch. 1. Even _John Stuart
+     Mill_ dropped his earlier erroneous views on this subject.
+     (Fortnightly Review, May and June, 1869.) Not, however,
+     without exaggeration, as is proved by his well-known saying,
+     that laborers needed capital but no capitalists. Still, even
+     here, he tenaciously holds that a rise in wages which
+     increases the price of some classes of commodities, must
+     decrease the aggregate demand for commodities. But better
+     paid workmen may now increase their demand for commodities
+     to the same extent that the purchasers of labor who do not
+     gain as much as before, or the consumers of the goods whose
+     price has been enhanced diminish theirs. (_Brentano_, in
+     Hildebrand's Jahrbb., 1871, 374.) Only, this increase need
+     not affect the very commodities influenced by the decrease.]
+
+     [Footnote 166-8: Thus, the person who builds his own house
+     is wont to pay his workmen better than a contractor or
+     builder by profession; and the maker of the entire
+     manufactured article, as a rule, suffers less frequently
+     than the maker of only half of it. (_Hermann_, Staatsw.
+     Unters., II, Aufl., 471.)]
+
+
+SECTION CLXVII.
+
+DIFFERENCE OF WAGES IN DIFFERENT BRANCHES OF LABOR.
+
+All the causes which make wages higher in some branches of labor; than
+in others, may be divided into three great categories.[167-1]
+
+A. Rare personal acquirements. The supply of labor requiring rare
+personal ability will always be limited.[167-2] Such labor must,
+naturally, have great value in use, when a small supply of it is met by
+a great demand.[167-3] It sometimes happens that a species of labor can
+be utilized only by a small circle of persons who demand it. But the
+wages for it is raised very high by the great solvability of those who
+do demand it. How frequently it happens, for instance, that a minister
+is paid a very high salary for the ability he possesses of making
+complicated and dry affairs of state attractive to the personal taste of
+his sovereign.[167-4] Here, particularly, the confidence which the
+workman inspires by his skill and fidelity enters as an element. Without
+this confidence, there are many kinds of business which would be crushed
+out entirely by the control it would be necessary to subject them to,
+and others would not be possible at all.[167-5] When, for instance, in a
+large manufacturing establishment, understrappers, workmen, foremen,
+subordinate superintendents, directors, etc., draw different salaries,
+their pay, if equitably graduated, should be in harmony with the
+principles laid down in Sec. 148, The head of a manufacturing
+establishment, for instance, who has organized a more perfect division
+and cooperation of labor, himself, and by means of which ten men are
+enabled to perform the work before performed by twenty, may equitably
+retain, as the reward of his organizing power, a considerable amount of
+what was previously paid out in wages. Louis Blanc's proposition, that
+all should receive equal salaries is, as Bastiat remarks, equivalent to
+the assertion that a yard of cloth manufactured by a lazy or unskillful
+workman is worth as much as two yards manufactured by an industrious and
+skillful one.[167-6]
+
+Such qualified labor, as is treated of here, may be most accurately
+estimated, the quality of which supposes a certain cost of acquisition.
+This cost may be considered as the outlay of so much capital, which,
+with interest,[167-7] should come back to the workman in his wages.
+Otherwise, others would be deterred from entering the same business by
+the example of his loss. Here, especially, it is necessary to take into
+account the long period of apprenticeship or tuition, and the large fees
+paid for the same; and this, whether they depend on the natural
+difficulties in the way of acquirement or on artificial obstacles
+opposed to freedom of competition.[167-8] The influence of these
+circumstances is particularly great in those kinds of labor which
+require a "liberal" education.[167-9] Among the costs of production
+proper, peculiar to this labor-force, must be included, also, the
+necessary support of the workman, during the interval between the
+completion of his studies and the beginning of his full reward.[167-10]
+
+When a species of work requires special current expenses to be made in
+order to its proper performance, these also should of course be made
+good to the workman in his wages. Most intellectual labor, for instance,
+requires quiet surroundings. The brain-worker cannot share his study
+with his family, and, therefore should receive wages or remuneration
+large enough in amount to enable him to arrange his dwelling
+accordingly. A similar circumstance, only in a much higher degree,
+enhances the price paid for diplomatic service.
+
+     [Footnote 167-1: Excellent germs thereof in _Adam Smith_,
+     Wealth of Nat., I, ch. 10, 1. Earlier yet, in _Galiani_,
+     Della Moneta, I, 2. _Cantillon_, Nature du Commerce, 24 ff.]
+
+     [Footnote 167-2: Even in the case of mere manual labor, for
+     instance, a skillful packer of goods is paid higher wages
+     than a mere day laborer; a sower better than a plowman or a
+     digger; a vintner, in general, better than an agricultural
+     laborer: in the Palatinate of the Rhine, in the ratio of
+     36:24. Thus, almost anyone can paint a door or a house,
+     while an artist possesses a species of natural monopoly.]
+
+     [Footnote 167-3: Thus, the Greek juggler, who understood how
+     to throw lintels from a certain distance through the eye of
+     a needle, was very appropriately rewarded by his king with a
+     bushel of lintels. On the other hand, the high fee paid for
+     an operation for cataract depends both on the great
+     importance of the eye which cannot be replaced in any way,
+     and on the rarity of the courage among doctors to pierce the
+     eye of a living man. Very remarkable achievements, which it
+     requires great education to understand, are generally paid
+     for at a very low rate. (_Stein_, Lehrbuch, 123.)]
+
+     [Footnote 167-4: I need only recall _Richelieu_ and
+     _Mazarin_, the last of whom left an estate worth 200,000,000
+     livres. (_Voltaire_, Siecle de Louis XIV., ch. 6.) In
+     Parisian industries, few workmen are as well paid as those
+     who are skilled in rapidly effecting changes of form. The
+     so-called _premieres de modes_ frequently received more than
+     1,800 francs a year, while the _appreteuses_ received only
+     from 15 to 20 sous a day. (Revue des deux Mondes, Sept. 15,
+     1850.) There are women there paid very well for making
+     pin-cushions, pen-wipers, etc., each one of a different
+     form; but as soon as any one form ceases to be a novelty,
+     the wages paid for making it sinks to a minimum. (_M. Mohl_,
+     Gewerbswissenschaftliche Reise durch Frankreich, 87.)]
+
+     [Footnote 167-5: Jewelers, lawyers, statesmen, generals.
+     _Senior_ says that of the income of L4,000 which a lawyer or
+     a doctor draws, only L40 are wages for his labor; L3,000 are
+     a rent paid for the possession of extraordinary talent, or
+     for his good luck, and L960 as the interest on his
+     intellectual capital, which is also the chief element of
+     wealth. (Outline, 134.)]
+
+     [Footnote 167-6: On the sad experience of the tailors'
+     association founded by Louis Blanc himself, at Clichy, and
+     in consequence of which they soon gave up paying equal wages
+     and returned to piece wages, see Journal des Economistes,
+     Mars, 1850, 349.]
+
+     [Footnote 167-7: As the interest on land improvements
+     assumes the character of rent, so also does that of the
+     education of labor the character of wages. The rate of
+     interest usual in a country, and the average duration of the
+     life of the workman affect the capital thus invested as a
+     species of annuity.]
+
+     [Footnote 167-8: Wages in the country are generally lower
+     than in the cities. In the electorate of Hesse, for
+     instance, on the supposition of steady employment, males, in
+     the country, received 69 thalers, 23 silver groschens a
+     year; females, 55 thalers, 9 silver groschens; in the
+     cities, on the other hand, males, 88 thalers, 23 silver
+     groschens, and females 61 thalers, 28 silver groschens.
+     (_Hildebrand_, statistische Mittheilungen, 101, 137.) And
+     so, according to _Colquhoun_, Treatise on Indigence, 1806,
+     the English agricultural laborers received, on an average,
+     L31 per annum, and manufacturing workmen, L55. The reason of
+     this is, besides the greater facility of learning how to
+     perform agricultural labor, the greater dearness of living
+     in cities, and in England also, because industry has
+     developed much more rapidly than agriculture.]
+
+     [Footnote 167-9: The cost of bringing up a common laborer,
+     in England, according to _Senior_, is L40; a gentleman,
+     L2,040. (Outlines, 205.) The more expensive an education
+     which one acquires for its own sake and without any special
+     object beyond this in view, is, the less can the capital
+     laid out in it affect wages. (_von Mangoldt_, V. W. L.,
+     382.)]
+
+     [Footnote 167-10: If the salaries of clergymen are, on an
+     average, lower than the income of a lawyer or a doctor, it
+     is partly because theological candidates are provided for
+     much earlier, and partly because of the lesser cost
+     attending the study of theology. Thus, at the end of the
+     eighteenth century, there were 350 students at the
+     University of Tubingen who are maintained gratis, on
+     foundation-money, and who had previously attended monastery
+     schools, free of charge. (_Nicolai_, Reisebescreibungen, XI,
+     73.) The remarkable contrast between the high wages of the
+     Athenian sophists and the low wages of modern abbes, Adam
+     Smith accounts for principally by the many scholarships of
+     modern times. In Saxony, in 1850 etc., the outlay by the
+     state and of foundation-funds for the education of a student
+     amounted to an average of nearly 140 thalers. (_Engel._)]
+
+
+SECTION CLXVIII.
+
+DIFFERENCE OF WAGES IN DIFFERENT BRANCHES OF LABOR. (CONTINUED.)
+
+B. The great economic risk of the work. When a branch of labor necessary
+to a country is, notwithstanding, attended by many chances of failure to
+the individual who devotes himself to it, a sufficient supply of the
+labor can be relied on only in case that the danger attending it is
+compensated for by a corresponding premium paid to success.[168-1] The
+choice of a profession or avocation, Adam Smith has compared to a
+lottery, in which the fortunate winners gain only what the unfortunate
+have lost. The greater the prizes, the greater also the number of
+blanks.[168-2] However, the surplus wages in risky kinds of labor are
+not sufficient to constitute a full insurance premium. This is connected
+with the vanity of men who, as a rule, over-estimate not only their
+talent but their good fortune,[168-3] and especially in youth, when they
+decide on the choice of a profession, etc. According to this, wages must
+be specially low where even complete failure does not endanger the
+living or the social position of the workman. Partly on this account are
+the industries carried on by women so poorly remunerated;[168-4] as also
+such work as is done by a large class of people to fill up their leisure
+hours.[168-5]
+
+The prospect of frequent interruptions in any kind of labor must have
+the same effect on the wages paid for it as its economic or business
+risk.[168-6] Thus, for instance, a mason or roofer must earn at least
+enough, during the days he can work, to enable him to live during the
+time he is prevented working by bad weather. Hence, the highness of his
+wages may, in some respects, be called an apparent one.[168-7] Wages
+paid by the week more generally tend to equality than wages paid by the
+day, and more so yet wages paid by the year, for then winter and summer
+compensate the one for the other. When the workman must be ever ready to
+perform his task, account must be taken not only of the number of hours
+he is engaged, but also of fractions of his waiting hours, which must be
+paid for likewise.[168-8] Two half days cost almost everywhere more than
+one whole one.
+
+The number of holidays plays a very important part here. In Protestant
+countries, the workman must, in about three hundred work days, earn
+enough to live on for about sixty holidays as well. In Catholic
+countries, before the time of Clement XIV., he had to earn enough in
+addition to support himself for about one hundred and fifty holidays, on
+ninety of which he performed no work whatever.[168-9] So large a number
+of holidays produces a higher rate of wages or necessitates a low
+standard of life among the working classes.[168-10] Something similar is
+true of evening leisure and rest;[168-11] _i. e._, of the time when
+labor ceases.
+
+     [Footnote 168-1: The greater the preparatory cost of labor
+     is, the more difficult it is for workmen to go from one kind
+     of labor to another; but, at the same time, the more certain
+     it is that, without the inducement of a premium paid, there
+     will be no after increase or recruiting of labor-force.]
+
+     [Footnote 168-2: Thus, for instance, in the country, where
+     doctors generally get along well enough, the most skillful
+     never obtains any very distinguished position. But, in large
+     cities, on the other hand, there is the greatest difference
+     between first-class physicians and obscure practitioners.
+     Great generals usually obtain a larger income and greater
+     influence than great admirals; and so it is that prizes in
+     the military lottery are greater, and there are therefore
+     more blanks than in the naval lottery. The common soldier is
+     almost everywhere worse paid than the common sailor. (_Adam
+     Smith._) To some extent, this depends on the prison-like
+     life of the seaman in times of service, and in the absence
+     of an attractive uniform. As to the extent that the lottery
+     comparison is defective, see _Macleod_, Elements, 215.]
+
+     [Footnote 168-3: Who, otherwise, would have anything to do
+     with a lottery in which the mass of players were certain to
+     lose, and the keeper of it to gain? And this accounts for
+     the fact well known to all financiers, that the amount of
+     the budget remaining the same, a greater eagerness to enter
+     the military service of the country is inspired by endowing
+     the higher positions munificently--provided they are
+     attainable by all--and paying the lower ones in a very
+     niggardly way, than when the pay is made more uniform.
+     Something similar is to be observed in the ecclesiastical
+     service of the Roman and Protestant churches, inasmuch as
+     the former, considered from an economic point of view,
+     offers more magnificent prizes, but also more blanks, while
+     the latter divides its emoluments more equally.]
+
+     [Footnote 168-4: As most seamstresses are, when the worst
+     comes to the worst, supported by their parents, connections
+     by marriage, brothers, etc., the condition of those who have
+     to live by their needle must be a pretty hard one. Who is
+     not familiar with the refrain to _Hood's_ celebrated song of
+     the shirt: "Oh God, that bread should be so dear, and flesh
+     and blood so cheap!" There is a "distressed needlewoman's
+     society" in London. They undoubtedly suffer from an
+     overcrowding of their avocation, yet their chief desire is
+     that the competition of all who do not live exclusively by
+     the labor of their hands should be prohibited; for instance,
+     that of seamstresses who are paid for their work outside of
+     factories. (Edinb. Rev., 1851, 24.) In Paris, in 1845, the
+     yearly earnings of women workers averaged 375 francs, their
+     yearly wants 500 francs. (Journal des Economistes, X, 250.)
+     This does not apply to female servants whose wages,
+     especially in highly cultured localities as the vicinity of
+     large cities (Holstein, Brandenburg), is very high. In
+     England, the wages of female domestics is frequently higher
+     than in the United States; and hence nearly two-thirds of
+     all English girls between fifteen and twenty-five years of
+     age serve as maids. _Browning_, Political and Domestic
+     Condition of Great Britain, 413; _Carey_, Rate of Wages, 92.
+     A remarkable indication that women thrive only in the
+     family. (Compare Sec. 250.)]
+
+     [Footnote 168-5: Thus, the darning of stockings in the sandy
+     parts of North Germany, in the Highlands of Scotland, in the
+     Faroe Islands, and formerly, even in the ante-rooms of the
+     Russian nobility. (_Schloezer_, Anfangsgruende der
+     Staatswirthsch, I, 126.) Flax spinning and linen weaving in
+     Westphalia and Ireland, and wool weaving in the East Indies.
+     Manufacturing industries must be in a very highly developed
+     condition, and machinery carried to a high degree of
+     perfection to compete in price with these accessory
+     industries. Cheapness of many products manufactured in
+     convents and monasteries.]
+
+     [Footnote 168-6: Among these interruptions, may also be
+     reckoned the prospect the laborer has of being early
+     incapacitated for work, and thus of seeing himself cut off
+     from every other source of support. This is one of the
+     principal reasons why opera singers are generally better
+     paid than actors.]
+
+     [Footnote 168-7: In Leipzig, in 1863, mason and carpenter
+     journeymen earned during the summer, from twenty silver
+     groschens to one thaler, ordinary garden workmen, 20 silver
+     groschens, while shoemaker journeymen did not make much more
+     than 3-1/2 thalers a week, and manual laborers, only from 10
+     to 15 silver groschens a day. The masons of Paris have the
+     reputation of being the best patrons of the savings banks,
+     and, on that account, are more exposed to being attacked by
+     thieves than any other class. (_Fregier_, Des Classes
+     dangereuses, II, 3, 1.) High wages paid for threshing in
+     East Prussia, because, the workman during the winter can be
+     employed in very few different kinds of labor, and therefore
+     must earn his entire support by threshing. In Paris, of
+     101,000 persons engaged in industry in 1860, 6,400 had to
+     calculate on no interruption of their work, the remaining
+     number, however, lost with a certain degree of regularity,
+     from 2 to 4 months a year. (Revue des deux Mondes, 15 Fev.,
+     1865.) If the interruption can be so accurately estimated in
+     advance that the workman may engage in some business for
+     himself during the interval, as for instance when the
+     workmen in the Bavarian breweries work during the summer as
+     masons, its influence on wages decreases. (_Storch_,
+     Handbuch, I, 192.) As to how, in Switzerland, since 1850,
+     the guaranty of full employment to masons in winter is
+     considered as an addition to the wages of summer, see
+     _Boehmert_, Arbeiterverhaeltnisse, I, 141.]
+
+     [Footnote 168-8: _Commissionaires_, hack-drivers,
+     _Extraposthalter_ in Germany, porters, nurses, guides,
+     servants in watering places and countries visited by
+     tourists. A London porter gets at least a shilling an hour.
+     If employed by the day, he of course gets smaller wages.
+     Image venders, who travel from house to house, sell their
+     wares much lower at their own houses. The person who calls
+     them in from the street is obliged to pay them not only for
+     this one journey, but for several others which yielded them
+     no profit.]
+
+     [Footnote 168-9: If we call the minimum daily need or the
+     absolute requirement of the workman = m, the rate of daily
+     wages in the former case must amount to at least m + m/6; in
+     the latter, on the other hand, to m + m/4. A Bavarian
+     holiday estimated at a _minus_ of much more than 1,000,000
+     florins. (_Hermann_, II, Anfl., 192.)]
+
+     [Footnote 168-10: _Von Sonnenfels_, Polit. Abhandlungen,
+     1777, 332 ff.]
+
+     [Footnote 168-11: In a part of Lower Bavaria, in which there
+     were 204 holidays in a year, among them the anniversaries of
+     the consecration of 40 churches in the country about, and a
+     feast day following each such anniversary, as well as
+     target-shooting festivals, the celebration begins at 4
+     o'clock P. M. of the preceding day. (_Rau_, Lehrbuch, I, Sec.
+     193.)]
+
+
+SECTION CLXIX.
+
+THE DISAGREEABLENESS OF CERTAIN CLASSES OF LABOR.--ITS EFFECT ON WAGES.
+
+C. Lastly, the personal disagreeableness of the work, which must be
+compensated for by higher wages. The uncleanness of a coal-worker's
+task, that of the chimney-sweep, and the repulsive labor of the butcher,
+demand high compensation, while other branches of business, themselves
+productive of pleasure, and therefore engaged in by many for pleasure's
+sake only, yield relatively little to those who engage in them as a
+regular industry.[169-1]
+
+To this category belong the kinds of labor which require extraordinary
+effort,[169-2] or which put life or health in unusual jeopardy.[169-3]
+But, indeed, when the danger attending any kind of work is made glorious
+by the romantic light of honor, or by still higher motives, it ceases to
+have any influence on wages.[169-4] On the other hand, the
+disreputableness of a business in itself raises wages;[169-5] whereas,
+scholars, poets, etc., leaving the charm inherent in their occupations
+out of account, are for the most part remunerated only by the honor paid
+them, and, not unfrequently, only by fame after they have gone
+hence.[169-6] And yet their talents are so rare, the preparation so
+laborious, the economic risk so great! Nor is there for the really
+creative workman any such thing as evening rest. (_Riehl._) Common
+intellectual labor is worse paid in our days than it was, comparatively
+speaking, a generation ago; because the increased average education
+makes it less burthensome to most people, and even seem positively
+agreeable to many. It would, indeed, be a dangerous retrogressive step
+towards barbarism, if it should come to such a pass, that labor
+preponderantly intellectual should be permanently more poorly
+remunerated than mere muscular labor.[169-7] [169-8]
+
+     [Footnote 169-1: Thus the chase, fishing in rivers (compare
+     _Theocrit._, Idyll., 21), gardening, fine female manual
+     labor, and literature.]
+
+     [Footnote 169-2: The high wages paid to mowers and threshers
+     may be accounted for on this ground (Sec. 160). In countries
+     that have a strong heavy soil, wages are frequently 20 per
+     cent. higher than under circumstances otherwise similar
+     where it is sandy or light. In Mexico, a digger gets about
+     twice the wages of an agricultural laborer. (_Senior_, On
+     the Value of Money, 56.)]
+
+     [Footnote 169-3: Almost every trade predisposes to some
+     special disease. Compare _Halfort_, Enstehung, Verlauf und
+     Behandlung der Krankheiten der Kuenstler und
+     Gewerbetreibenden, 1845. _Livy_, Traite d'Hygiene publique
+     et privee, 1850, II, 755. It has been noticed, in Sheffield,
+     that thoughtless steel polishers look unfavorably on certain
+     new inventions intended to protect workmen against inhaling
+     small particles of stone and iron dust. They dread that if
+     these inventions come into general use, their wages would be
+     lowered in consequence; and prefer a short and merry life to
+     one longer and more quiet.
+
+     In places in which nearly all kinds of work are dangerous,
+     the danger cannot of course relatively raise the wages of
+     anyone. Thus, in the Thuringian forest, the wages of the
+     haulers of wood are very low. (_Lotz_, Revision, III, 151.)]
+
+     [Footnote 169-4: Missionaries! Besides the extremely small
+     wages paid to common soldiers (in the German infantry only
+     36.5 thalers cash per annum, to which in Leipzig, for
+     instance, rations, etc., add about 34 thalers more) is an
+     outlay made by the government principally to effect a levy
+     of the tax of the compulsory labor that lies in
+     conscription. (_Knies._) In the volunteer system, the
+     difference between officers and men is wont to be much
+     smaller. Thus, _Gustav Wasa_ paid his German mercenaries as
+     follows: 6 marks a month to captains, five to lieutenants
+     and 4 to common soldiers. (_Geijer_, Schwed. Gesch., II, 125
+     seq.) Similarly in the case of the Greek hired troops.
+     (_Boeckh_, Staatshaushalt der Athener, I, 165 ff.) As to how
+     little at the outbreak of a war, soldier earnest money is
+     increased, and positions as officers most sought after, see
+     _Hermann_, II, Aufl., 479.]
+
+     [Footnote 169-5: Thus, for instance, the skinning or flaying
+     of dead animals is comparatively well paid, to which the
+     rarity of the application of the work of executioners
+     contributes. (_J. Moser_, Patr. Ph., I, No. 34.) The high
+     wages of actors, singers, dancers, and especially of the
+     female members of the stage, depends principally on the
+     contempt with which they were formerly looked upon;
+     excommunicated by the Catholic church, and a scarcely milder
+     sentence passed upon them by the Protestant, until about the
+     middle of the eighteenth century. (_Schleiermacher_,
+     Christliche Sitte, 681.) Compare even _J. J. Rousseau_,
+     Lettre sur les Spectacles a Mr. d'Alembert sur son Article
+     Geneve.]
+
+     [Footnote 169-6: _Schiller's_ "Theilung der Erde." _Blanqui_
+     says of the learned: "They are most frequently satisfied
+     with a citizen-crown, and think themselves remunerated when
+     justice has been done to their genius. Their magnanimity
+     impels them, to their own injury, to diffuse their knowledge
+     as rapidly as possible. Thus they are like the light of day
+     which no one pays for, but which all enjoy, without thanking
+     the giver as they ought." The reward of intellectual labor
+     is called an _honorarium_. (_Riehl_, Die Deutsche Arbeit,
+     1861, 232.) According to _J. B. Say_, Traite, II, ch. 7, the
+     poor wages of savants depends on the fact that they take to
+     market, and all at once, a great quantity of what they
+     produce, which cannot even be used up.]
+
+     [Footnote 169-7: In Switzerland, journeymen are often better
+     paid than the clerks kept by the greater tradesmen.
+     (_Boehmert_, Arbeiterverhaeltnisse, II, 168.) In England,
+     also, since 1850, the wages for "unskilled labor" has risen,
+     relatively, most. (_Tooke_, Hist. of Prices, VI, 177.) It
+     would be a frightful peril to our whole civilization if
+     school teachers and subordinate officials should be turned
+     into enemies of the entire existing state of things by
+     want.]
+
+     [Footnote 169-8: The high wages paid to engineers on
+     railroads is accounted for by the wear, physical and mental,
+     their employment entails, and also by their unavoidable
+     expenses away from home; further, by the importance of the
+     interests confided to their trust. On the Leipzig-Dresden
+     Railway, locomotive engineers, for the most part previously
+     journeymen blacksmiths, earned 900 thalers a year.
+     Similarly, in the case of pilots. The high wages paid on
+     board ships engaged in the slave-trade arose from the
+     unhealthiness of the African coast, where formerly
+     one-sixteenth of the crew died yearly (Edinburg Rev., 480),
+     from the moral turpitude of the business, and from the
+     severe penalties under which it was afterwards prohibited.
+     On the other hand, the low wages paid to European mining
+     laborers is largely the consequence of the certainty of
+     being cared for in old age, of those so employed. Weavers'
+     wages are low because the facility of learning the trade
+     makes it possible for the business to be carried on at home;
+     and hence there is a comparatively great pressure to engage
+     in it. (_Baines_, History of the Cotton Manufacture, 485
+     ff.)
+
+     According to the first annual report of the poor law
+     commissioners (202), the weekly wages in Manchester of
+     hod-carriers was 12s.; of hand-weavers, 7-15s.; of diggers,
+     10-15s.,; of pack-carriers, 14-15s.; of shoemakers, 15-16s.;
+     of machine-weavers, 13-16-5/6s.; of white-washers, 18s.; of
+     tailors, 18s.; of dyers, 15-20s.; of plasterers, 19-21s.; of
+     masons, 18-22s.; of tinsmiths, 22-24s.; of carpenters, 24s.;
+     of spinners, 20-25s.; of machinists, 26-30s.; of iron
+     founders and power-loom tenders, 28-30s. In Belgium, the
+     average daily wages for male labor was 1.18 francs for
+     agricultural laborers; for those engaged in industry, 1.48
+     francs; in the manufacture of linen, 0.80 francs; of cotton,
+     1.55; of woolens, 1.62; of silk, 1.25; of stockings, 1.14;
+     of glass, 2.58; of coal, 1.33. All according to the
+     Statistique generale de la B. In Athens, in the time of
+     Aristophanes, a pack-carrier earned 4 oboli a day; a street
+     sweeper, 3; a stone cutter on the public works, 6; a
+     carpenter, 5; for roofing houses and taking down
+     scaffoldings, each man, 6. The architects who superintended
+     the building of the temple of Polias, on the other hand, got
+     only 6 oboli per day, and the contractor 5. (_Boeckh_, I, 165
+     ff.)
+
+     The Edictum Diocletiani of the year 301 after Christ
+     contains the following provisions in relation to wages,
+     besides "board:" shepherds, camel-drivers and muleteers, 20
+     denarii; agricultural laborers, water-carriers, scavengers,
+     25; bakers, masons, roofers, house-finishers and repairers
+     of the inside, lime burners, wheelwrights and common clay
+     moulders, 50; boatsmen, sailors, makers of marble or mosaic
+     floors, 60; wall painters, 70; clay moulders for statues,
+     75; artistic painters, 150. (ed. _Mommsen_, cap. 7.) In
+     slave countries, the price of different slaves is to be
+     judged, mainly, by the above rules. Concerning the Greeks,
+     see _Boeckh_, I, 95 ff. _St. John_, The Hellenes, III, 23 ff.
+     It is a characteristic fact that the Romans, after the
+     Syrian war, began to pay high prices for the hitherto much
+     despised kitchen slaves. (_Livy_, XXXIX, 6.) Remarkable
+     fixed prices for slaves by _Justinian_: Cod. VI, 43, 3; VII,
+     7, 1, 5. Thus, in the Lex Burgundionum, tit. 10, the
+     compensation for the murder of a common laborer is fixed at
+     30 solidi; of a carpenter, at 40; of a smith, at 50; of a
+     silversmith, at 100; of a goldsmith, at 150. Advanced
+     civilization is wont to raise the price of slaves who
+     perform work of a higher quality, just as it raises the
+     wages of labor of a higher quality.]
+
+
+SECTION CLXX.
+
+RATE OF WAGES.--INFLUENCE OF CUSTOM.
+
+Custom always exerts a great influence where there is question of
+choosing an avocation with the intention of devoting one's self to it
+entirely and exclusively. There is a public opinion which fixes the
+gradation of the different classes of labor and their appropriate
+reward, which is slow to change, and which both determines, and is
+determined by the relation of supply and demand. There is an equilibrium
+between the pleasantness of work and the rate of wages only in the case
+of such kinds of labor as are on the same social footing. It frequently
+happens, however, that the most repulsive work has to be performed by
+those who are forced to accept any pay and to be satisfied with
+it.[170-1] There are many branches of labor those engaged in which still
+form a kind of exclusive caste; and the pay of the higher branches is
+maintained at a high rate, especially by the fact that the members of
+the castes to which they belong are provident in their marriages. The
+lower classes are not in a condition to meet the preparation necessary
+to engage in such professions, even if they were certain of being
+afterwards reimbursed with interest for the outlay.[170-2] One of the
+chief causes of the lowness of wages paid to women is, that so few
+branches of labor are traditionally open to them, that the few that are,
+are intended to supply luxuries, and are, besides, for the most part,
+over-crowded. The distribution of the aggregate wages earned by any
+industry, among the higher and lower classes of workmen who cooperate in
+it, depends very largely on their social position relatively to one
+another.[170-3] [170-4] Here political forms and changes may exert the
+greatest influence.[170-5]
+
+Thus, the artificial increase of the wages of masters effected by the
+former guild-system was produced, to say the least, as much at the cost
+of the journeymen and apprentices as of the public. And if, on the other
+hand, it cannot be said that the most recent marked rise in wages, in so
+many countries, is merely the consequence of the extension of the
+parliamentary right of suffrage, certain it is that the two phenomena
+are very closely related, and that both are at once the effect and the
+cause of the intensified feeling of individuality and of the
+consciousness of constituting a class in the community of the lower
+strata of society.
+
+     [Footnote 170-1: At least where the supply of labor in
+     general surpasses the demand. Compare _J. S. Mill_,
+     Principles, II, ch. 14, 3d ed. The dangerous industries in
+     which lead, quicksilver, arsenic, etc. are manipulated or
+     employed, should be and can be better paid than they
+     actually are. In the Bavarian Palatinate, stone-cutters
+     rarely reach their 45th year; and yet their wages are very
+     low, because of the comparative over-population of the
+     country. (_Rau_, _Haussen's_ Archiv., N. T. X., 228.) But
+     the lowness of wages here is certainly and mainly caused by
+     the little thought the workmen themselves give to
+     considerations of health.]
+
+     [Footnote 170-2: The lower the rate of wages of any class
+     sinks, the more difficult it becomes for parents to devote
+     their children to another career.]
+
+     [Footnote 170-3: In Paris, 24,463 workmen with less than 3
+     francs daily; 157,216, with from 3 to 5; 10,393, with from 5
+     to 20 and even 3 to 5 francs. It is remarkable, however, how
+     uniform the average wages in the different trades is:
+     _vetements_, 3.33 francs; _fils et tissus_, 3.42;
+     _boisellerie_, _vannerie_, 3.44; _garcons boulangers_,
+     _bouchers_ 3.50; _arts chimiques et ceramiques_ 3.71;
+     _batiments_, 3.81; _carosserie_, 3.86; _peaux et cuirs_,
+     3.87; _ameublement_, 3.90; _articles de Paris_, 3.94;
+     _metaux communs,_ 3.98; _metaux precieux_, 4.17;
+     _imprimerie_, 4.18. (Journal des Economistes, Janv. 1853,
+     111.)]
+
+     [Footnote 170-4: How the Roman advocates were given to all
+     sorts of ostentation, and even borrowed costly rings in
+     order to raise their _honoraria_, see _Juvenal_, VII, 105,
+     ff.]
+
+     [Footnote 170-5: The salaries paid to the employees in the
+     office of the minister of finance in France and the United
+     States were as follows: to the porter, 1,500 and 3,734
+     francs; the lowest clerk, 1,000 to 1,800, and 5,420 francs;
+     to the head clerk, 3,200 to 3,600, and 8,672 francs; the
+     secretary general, 20,000 and 10,840 francs; to the
+     minister, 80,000 and 32,520 francs. (_Tocqueville_,
+     Democratie aux Etats-Unis, II, 74.) In the treasury
+     department, at Washington, of 158 employees, only 6 received
+     less than $1,000 salary, but only 2 over $2,000. (_M.
+     Chevalier_, Lettres sur l'Amerique du Nord, II, 151, 456.)
+     Compare _Buesch_, Geldumlauf, IV, 34. In Russia, the wages of
+     the higher classes of laborers as compared with those paid
+     the commoner class is much higher than in Germany.
+     (_Kosegarten_, in _Haxthausen_, Studien, III, 583.) On the
+     other hand, in England, since 1850, the rate of wages for
+     unskilled labor has risen relatively more than any other.
+     (_Tooke_, Hist. of Prices, VI, 177.)]
+
+
+SECTION CLXXI.
+
+HISTORY OF THE WAGES OF COMMON LABOR.--IN THE LOWER STAGES OF
+CIVILIZATION.
+
+In very low stages of civilization, where there is scarcely any such
+thing as rent, and where capital is extremely rare, the wages of labor,
+notwithstanding its small amount absolutely speaking, must eat up the
+greatest part of the product.[171-1] With every further advance, the
+condition of the laboring class is modified, according as the natural
+decline in this relative amount of their wages is outweighed or
+counterbalanced, or neither outweighed nor counterbalanced, by the
+increase in the aggregate product; in other words, in the national
+income in general as compared with the number of workmen.
+
+     [Footnote 171-1: _Adam Smith_, Wealth of Nat., I, ch. 8.
+     Thus in the case of nations of hunters. The wages of free
+     laborers in Russia, at the beginning of this century, were
+     so high that mowers, in the vicinity of Moscow, received a
+     good half of the corn mowed by them, (_von Schloezer_,
+     Aufangsgruende, I, 65.) As a rule, the natural relation of
+     the three branches of income is here postponed by the
+     intervention of slavery. (Sec. 76, 155.) But, for instance,
+     since the negroes have been emancipated, in the southern
+     states of the American Union, it has become necessary to
+     promise them one-half of the cotton crop as wages, and for
+     the employer to run all the risk of a bad harvest. (_R.
+     Somers_, The Southern States since the War, 1871.) On the
+     wretched pay of domestic servants in the middle ages, see
+     _Grimm_, D. Rechtsalterth., 357.]
+
+
+SECTION CLXXII.
+
+HISTORY OF THE WAGES OF COMMON LABOR.--IN FLOURISHING TIMES.
+
+When, where a nation's economy[172-1] is growing and flourishing,
+capital increases more rapidly than population, there is a search for
+employment by capital still greater than the search for employment by
+labor. The consequence is, of course, a decline in the rate of interest,
+and a rise in the rate of the wages of labor, although the latter may be
+compelled to surrender a part of its increase to rent, which also rises.
+If simultaneously with these phenomena, there have been great advances
+made in national productive skill, especially in the cultivation of
+land; if, therefore, labor and the capital consumed have become more
+prolific, the condition of the laboring class is improved in a two-fold
+manner; the condition of capitalists needs, to say the least, grow no
+worse, and the increase of rent paid to landowners may be
+avoided.[172-2]
+
+This favorable development is most striking in the colonies of rich and
+highly civilized parent countries, where the labor, capital and social
+customs of an old and ripe civilization are found together with the
+overflowing natural forces inherent in a virgin soil, engaged in the
+work of economic production. Here the growth of national wealth is most
+rapid; and the rate of wages is here wont to be highest.[172-3] With the
+high rate of interest that obtains where capital is rapidly saved, and
+with the low price of land, it is not a matter of difficulty for good
+workmen to enter into the ranks of landowners and capitalists. In North
+America, and especially in the western part,[172-4] it is very
+frequently in the normal course of economic development for young people
+to begin to work on wages, then to work on their own account, and
+finally to become themselves employers of labor.
+
+     [Footnote 172-1: Compare _Hermann_, Staatswirths. Unters.,
+     241 ff.; _J. S. Mill_, Principles, ch. 3. As to how _Carey_
+     confounds the rise and fall of the productiveness of labor
+     with the rise and fall of wages, see _J. S. Mill's_ views in
+     _Lange_, 1866, 218 ff.]
+
+     [Footnote 172-2: In England, wages from 1400 to 1420,
+     estimated in produce, were much higher than from 1500 to
+     1533. (Statist. Journal, 1861, 544 ff.) Later, a quarter of
+     wheat was earned by day labor as follows: under Elizabeth,
+     in about 48 days; during the seventeenth century, in 43
+     days; between 1700 and 1766, in 32 days; between 1815 and
+     1848, in from 19 to at most 28-3/4 days. (_Hildebrand_, Nat.
+     Oek. der Gegenwart und Zukunft.) Since 1860, it has been
+     earned in about 14 days. About 1668, the wages paid to
+     English laborers and servants was one-third higher than
+     twenty years before. (_Sir J. Child_, Discourse on Trade, p.
+     43 of the French translation.) _D. Defoe_, Giving Alms no
+     Charity, 1704, draws a much more favorable picture of the
+     time next succeeding. _Adam Smith_, Wealth of Nat., I, ch.
+     8, shows how money-wages, in the eighteenth century, were
+     higher and the price of corn lower than in the seventeenth
+     century. Between 1737 and 1797, wages in most parts of
+     England, except in the immediate neighborhood of the great
+     cities, doubled. (_Eden_, I, 385.) In Scotland, about the
+     year 1817, the wages of married farm servants, expressed in
+     corn, were about 60 per cent. higher than in 1792.
+     (_Sinclair_, Grundgesetze des Ackerbaues, 105.)
+
+     _Boisguillebert_, Traite des Grains, I, 2, estimates the
+     wages in France, for agricultural laborers, at least from 7
+     to 8 sous, of present money, and at twice that amount in
+     harvest time. In 1697, laborers in Paris received from 40 to
+     50 sous. (Detail de la France, I, ch. 1, ch. 7.) _Vauban_
+     estimates wages in large cities at 22-1/2-45 sous; for
+     country manual laborers, at 18 sous; for agricultural
+     laborers, 12-13-1/5 sous. (Project d'une Dime royale, 89
+     Daire.) On the other hand, _Chaptal_, De l'Industrie, Fr. I,
+     245, 1819, speaks of an average wage--25 sous. _Dureau de la
+     Malle_, Economie polit. des Romains, I, 151, allows
+     agricultural laborers, in 80 departments of France, only
+     20-25 sous. According to _Moreau de Joannes_, Journal des
+     Econ., Oct. 1850, the average wages of a French agricultural
+     family amounted per annum, in 1700, to 135 francs; in 1760,
+     to 126; in 1788, to 161; in 1813, to 400; in 1840, to 500
+     francs. While _A. Young_, Travels in France, 1787-89, speaks
+     of wages of 20 sous a day; _Peuchet_, Statist. elementaire,
+     1805, 361, assumes it to be 30 sous, although the price of
+     corn was not much higher. Compare _Birkbeck_, Agricultural
+     Tour of France, 13, who is of opinion even, that French
+     laborers are better situated than the English (?). From 1830
+     to 1848, wages decreased about 30 per cent. (_L. Faucher_,
+     Revue des deux Mondes, Avril, 1848.) _Levasseur_, Histoire
+     des Classes ouvrieres en France, II, 1858.
+
+     General data for whole countries are obviously very
+     doubtful. In Germany, for instance, economically active
+     places have witnessed an undoubted elevation of the
+     condition of the laboring classes. Thus, in Hamburg and
+     Lower Saxony, about the end of the eighteenth century
+     (_Buesch_, Geldumlauf, II, 56 ff.); while in Thuringia, in
+     1556, a _suemmer_ of rye was earned by 7 summer days' labor,
+     and in 1830 ff. by 8. (_Lotz_, Handbuch, I, 404.) In Hessen,
+     also, there has been but a very small increase in wages.
+     _(Hildebrand,_ Nat. Oek., I, 190.) According to _von der
+     Goltz_, Laendliche Arbeiterfrage, 1872, 84 seq., wages in the
+     country during the last twenty or thirty years have
+     increased on an average, 50 per cent. at least; in Bavaria
+     about 100 per cent.; in the Rhine province, male wages,
+     about 100; female wages, from about 75 to 100 per cent. The
+     masterly investigations of the wages of typesetters in Jena
+     and Halle by _Strasburger_ in _Hildebrand's_ Jahrb., 1872, I
+     ff., show that from 1717 to 1848, there was scarcely any
+     change in them. A million m's was paid for in 1717-40 with
+     26.93 Prussian _sheffels_ of rye; 1804-47 with from 24.80 to
+     28.80. Since then, a remarkable rise; so that in 1871, up to
+     November, 76.26 was reached. The prices of food, dwellings,
+     fuel, clothing, such as is in demand by such laborers, rose
+     between 1850 and 1860, 16.7 per cent., and the wages for
+     1,000 m's in the same period of time rose about 14.3 and
+     43.7 per cent. In the industrious manufacturing vicinity of
+     Moscow, wages in 1815 were four times as high as in 1670,
+     while the means of subsistence rose relatively much less.
+     (_Storch_, I, 203.)]
+
+     [Footnote 172-3: In the United States, the wages of
+     carpenters and masons, about the end of the last century,
+     were $0.62 and $0.75; in 1835, of the former from $1.12 to
+     $1.25, and for the latter from $1.37 to $1.50. In 1848, the
+     general wage was $0.75. The price of corn, in the meantime,
+     did not rise, and the price of manufactured articles was
+     much smaller. (_Carey_, Rate of Wages, 26 seq.; Past,
+     Present and Future, 154.) In New York, as far back as 1790,
+     wages were much higher (_Ebeling_, Geschichte und
+     Erdbeschreibung von Nordamerika, II, 917); and between 40
+     and 50 years ago, a journeyman mason might earn over 700
+     thalers per annum. Agricultural laborers, in 1835, got $9 a
+     month and their board, valued at $65 for the whole year. In
+     the vicinity of large cities, both were higher. (_Carey_,
+     91.) The condition of the factory hands, in Lowell, is a
+     very good one. In 1839, more than 100 of them had over
+     $1,000 each in the savings banks, and pianos at their mess
+     places. (_Boz_, Notes on America, 1842.) Most of them could
+     save $1.50 a week. _Colton_, in his Public Economy (1849),
+     says that a workman would consider himself in a bad way if
+     he could not save half of his wages. Compare _Chevalier_,
+     Lettres sur l'Amerique, II, 174, 122, 19; I, 221 ff.
+
+     Apprentices in the United States, in almost every instance,
+     begin to be paid wages as soon as their work begins to prove
+     useful. The work of half-grown children, who had not yet
+     left the parental roof, was so well paid that it was
+     estimated that a child earned for his parents, on the whole,
+     L100 more than he cost them. What an incentive to marriage!
+     (_Adam Smith_, Wealth of Nat., I, ch. 8.) In Canada,
+     agricultural laborers earn between L24 and L30 per annum and
+     their board. In and around Melbourne, agricultural laborers
+     got from 15 to 20 shillings a week and lodging; herdsmen,
+     L35 to L40 a year; girls, from L20 to L45 (Statist. Journal,
+     1872, 387 ff.); female cooks, from L35 to L40; male cooks,
+     from L52 to L156. In hotels, girls, from L30 to L35; female
+     cooks, from L50 to L100; domestic servants, L39 to L52;
+     carpenters, masons, etc., 10 shillings a day; the best
+     tailors, from 60 to 75 shillings a week; shoemakers, from 40
+     to 55 shillings; bakers, from 40 to 60 shillings a week.
+     (Statist. Journal, 1871, 396 seq.) In San Francisco, a short
+     time since, servant girls got $25 a month; Chinese, $1 a
+     day; common laborers, $2; skilled artisans, from $3 to $5.
+     (_Whymper_, Alaska, 299, 326.) The wages of a European
+     tradesman, in Rio Janeiro, was from I to 2 Spanish piasters
+     a day. (_Martius_, Reise, I, 131.) In the English West
+     Indies, a new-born negro was formerly worth L5. (_B.
+     Edwards_, History of the West Indies, II, 128.) The high
+     wages paid in young colonies are frequently made temporarily
+     still higher, by a large influx of capital in the shape of
+     money, brought by emigrants, and by government outlays.
+     Thus, in Van Diemen's land, for instance, in 1824,
+     carpenters, masons, etc. got 12 shillings a day; in 1830,
+     10; in 1838, only from 6 to 7, although between 1830 and
+     1838, the export trade of the island trebled while the
+     population scarcely doubled. (_Merivale_, On Colonies, II,
+     225.)]
+
+     [Footnote 172-4: As to how many workmen in the eastern part
+     of North America buy land in the west, and so threaten their
+     employers with immediate emigration, see _Brentano_,
+     Arbeitergilden, II, 131. However, in Massachusetts, women's
+     wages are in many instances so low that, considering the
+     dearness of the means of subsistence, it is almost
+     impossible to understand how they exist. (Statist. Journal,
+     1872, 236 ff.)]
+
+
+SECTION CLXXIII.
+
+HISTORY OF THE WAGES OF COMMON LABOR.--IN FLOURISHING NATIONS.
+
+A permanently[173-1] high rate of wages[173-2] is, both as cause and
+effect, very intimately connected with a flourishing condition of
+national life. It proves on the one hand, great productiveness of the
+public economy of the people generally: prudence, self-respect and
+self-control, even of the lowest classes, virtues, which, however, are
+found, on the whole, only where political liberty exists, and where the
+lowest classes are rightly valued by the higher.[173-3] On the other
+hand, it produces a condition of the great majority of that portion of
+the population who have to support themselves on the wages they receive,
+worthy of human beings, a condition in which they can educate their
+children, enjoy the present and provide for the future. Equality before
+the law and participation in the affairs of government are empty
+phrases, and even tend to inflame the passions, where the rate of wages
+is not high. When the lower classes are dissatisfied, in highly
+civilized countries, with the sensitiveness and mobility of the whole
+national life, there can be no certainty of the freedom of the middle
+classes or of the rule of the upper. Here, in other respects, also, the
+philanthropy of employers harmonizes remarkably well with their
+reasonable self-interest. According to Sec. 40, only the well-paid workman
+can accomplish anything really good, just as, conversely, only the good
+workman is on the whole, and in the long run, well paid. This suggests
+the physiological law, that where muscular activity is great, nutrition
+must be great, likewise; and the rapid waste and repair of tissues
+strengthens the muscles and gives tone to the whole physical life. With
+a correct insight into the relations of things, antiquity described its
+greatest worker, Herakles, as a great eater also. A well-paid workman,
+who costs and accomplishes as much in a day as two bad ones, is cheaper
+than they. He works much more cheerfully and faithfully, is, hence, more
+easily superintended, is less frequently sick, and later
+decrepid.[173-4] His childhood costs less, and his burial is not so
+expensive. In cases of need, he can more easily bear the weight of
+taxation or a temporary lowering of wages.[173-5] We might say of the
+granting of holidays and of evening leisure something similar to what we
+have said of the rate of wages. They are indispensable requisites to the
+development of a desirable individuality in the working classes; and
+when used for that purpose are certainly no detriment to the product of
+labor or to employers.[173-6] [173-7]
+
+In consideration of all the blessings attending a high rate of wages, we
+may well be induced to put up with a certain and frequently inconvenient
+external defiance of the lower classes which is wont to accompany
+it.[173-8] It teaches the upper classes many a moral lesson, and is
+surely a lesser sin in the lower, than the cowardly, malicious crimes of
+the oppressed. When wages are so low that they have to be supplemented
+by begging or public charity, the effect on morality is the same as when
+government officials, who cannot live on their salaries, resort to
+bribery or embezzlement.[173-9] [173-10]
+
+     [Footnote 173-1: A merely momentary rise in wages might be
+     the result of a great calamity, destructive of human life,
+     and might seduce workmen not intellectually prepared for it
+     into idleness. Compare _von Taube_, Beschreib. von Slavonien
+     etc., II, Sec. 4.]
+
+     [Footnote 173-2: On the necessity of _free_ wages, that is
+     of an excess over and above the costs of support and of
+     maintaining one's position, see _Roesler_, Grandsaetze, 394.]
+
+     [Footnote 173-3: _Dans aucune histoire on ne rencontre un
+     seul trait, qui prouve que l'aisance du peuple par le
+     travail a nui a son obeissance, (Forbonnais.)_ This is true
+     only of well governed countries. When, in England, about the
+     middle of the eighteenth century, a great improvement took
+     place in the condition of the laboring classes,
+     _Postlethwayt_ (Great Britain's commercial Interests, 1759)
+     was one of the first to recognize its general beneficial
+     character; also _Th. Mortimer_. (Elements of Commerce,
+     Politics and Finance, 1774, 82 ff.) _Benjamin Franklin_,
+     before the American revolution, was of opinion that high
+     wages made people lazy. (On the Price of Corn, 1776. On the
+     laboring Poor, 1768.) He afterwards, however, acknowledged
+     its generally good effect, and that even the products of
+     labor might be cheapened thereby. (On the Augmentation of
+     Wages, which will be occasioned in Europe by the American
+     Revolution. Works II, 435 ff.) See further, _Paoletti_, Veri
+     Mezzi di render felici le Societa, ch. 15; _Ricardo_,
+     Principles, ch. 5; _Th. Brassey_, on Work and Wages, 1872.
+     _Umpfenbach_, Nat. Oek, 181, calls the costliness of labor to
+     the purchaser of labor, "givers' wages," their purchasing
+     power to the laborer himself, "receivers' wages," and is of
+     opinion, that as civilization advances, the former declines
+     and the latter rises.]
+
+     [Footnote 173-4: When in the department of the Tarn flesh
+     food was introduced among journeymen smiths instead of mere
+     vegetable diet, the sanitary improvement that followed was
+     so great that the number of days lost by sickness in a year
+     decreased from 15 to 3. (_Moleschott_.)]
+
+     [Footnote 173-5: In high stages of civilization, it is
+     always more profitable, the result being the same, to keep a
+     few well fed cattle than many poorly fed. (_Roscher_,
+     Nationaloek. d. Ackerbaues, Sec. 179.) _Infra_, Sec. 231. When the
+     drainage of Oxford street in London was made while wages
+     were rising, it happened that the cubic foot of masonry work
+     at 10 shillings per day was cheaper than it was formerly at
+     6 shillings per day. (_Brassey_, 68 ff.) _Senior_ calls it
+     an absurdity to consider the high wages paid in England as
+     an obstacle in the way of its successful competition with
+     other countries. Rather would he consider it as the
+     necessary result of the excellence of English labor. Thus,
+     in his Lectures on the mercantile Theory of Wealth, p. 76,
+     he says that if the English employ a part of their labor
+     injudiciously, they must pay it not in proportion to what it
+     really accomplishes, but to what it might do if well
+     employed. If a man calls in a doctor to cut his hair, he
+     must pay him as a doctor. If he puts a man to throwing silk
+     who might earn 3 ounces of silver a week spinning cotton, he
+     must pay him weekly 3 ounces of silver, although he may
+     deliver no more silk within that time than an Italian who
+     gets only 1-1/2 ounces.]
+
+     [Footnote 173-6: Norfolk country workmen never worked more
+     than 10 hours a day except in harvest and seed time. But a
+     plowman there accomplished as much in 5 days as another in
+     8. (_Marshall_, Rural Economy of N., 138.) In southwestern
+     Germany, the country working day is from 2 to 4 hours
+     shorter than in the northeast, and yet just as much is
+     accomplished in the former quarter. (_von der Goltz_, Laendl.
+     Arbeiterfrage, 88, 131.) Thus the coal diggers of South
+     Wales work 12 hours a day, those of Northumberland, 7; and
+     yet the same achievement is 25 per cent. dearer in case of
+     the former. In the construction of the Paris-Rouen Railroad,
+     the English achieved more than the French, although the
+     former worked from 6 A. M. to 5:30 P. M., and the latter
+     from 5 A. M. to 7 P. M. (_Brassey_, 144 ff.) Examples from
+     English manufactories in _Marx_, Kapital, I, 401 seq. In an
+     English factory the hours worked were 12, and afterwards,
+     11. This caused the number of attendants of the evening
+     school to grow from 27 to 98. (_Horner._) _Dollfuss_, in
+     Muehlhausen, reduced the number of hours worked from 12 to
+     11, and let the wages remain the same as before. The result
+     was besides a great saving made in fuel and light, a surplus
+     product of at least 1-2/3 per cent. Something similar
+     observed by _M. Chevalier_, Cours, I, 151.
+
+     Hence _J. Moeser_, Patr. Ph., III, 40, desired, on this
+     account, that work in the evening should be prohibited by
+     law. In England, not only the moral necessity, but also the
+     economic general utility of leisure time of workmen has been
+     defended, among others by _Postlethwayt_, Dictionary of
+     Trade and Commerce, I, prelim. Discourse, 1751. A beautiful
+     law, V Moses 24, 15. Only, care must be taken not to go to
+     the other extreme, which is still more detrimental to
+     personality. The North American ideal of 8 hours a day for
+     work, 8 for eating, sleeping, etc., and 8 for leisure, would
+     be injurious except to workmen intellectually very active.
+     But the provision to be met with in many states of the Union
+     and in the arsenal employ of the government, that in case of
+     doubt, the work day is to be tacitly assumed as of 8 hours,
+     has, it is said, correspondingly lowered wages. See _supra_,
+     Sec. 168.]
+
+     [Footnote 173-7: In India, where the institution of caste is
+     found, nearly half the year is made up of feast days, while
+     in rationalistic China there is no Sunday and very few
+     general holidays. (_Klemm_, A. Kulturgeschicht. VI, 425.
+     _Wray_, The practical Sugar Planter, 1849.) The
+     Judaic-Christian sanctification of the seventh day is a
+     happy medium between these two extremes. Recuperation and
+     collectedness get their due without its costing too much to
+     action. _Ora et labora!_ Compare _Sismondi_, N. P. II, ch.
+     5. Which is best, traveling on foot, to drag along all the
+     time, or to walk decently and rest properly between times?
+     The rest of Sunday, even leaving the work of recuperation
+     and edification out of account, is necessary in the
+     interests of the family and of cleanliness. The French
+     _decadis_ accomplished materially even too little: _ils ont
+     a faire a deux ennemis, qui ne cederont pas, la barbe et la
+     chemise blanche_. (_B. Constant._) Hence, an English prize
+     essay on the material advantages of Sunday found 1,045
+     competitors among English working men. (Tuebinger Zeitschr.,
+     1851, 363.)]
+
+     [Footnote 173-8: Thus _Parkinson_, A Tour in America,
+     complains that with four servants in the house, he was
+     obliged to polish his own shoes, and with his wife and
+     children to milk the cows, while his people were still
+     asleep. Strange servants bringing a message, come in with
+     their hats on. All domestics are called mister or misses.
+     Servant maids are called "helps," and their masters,
+     "employers." If a person at a hotel asks for a laundress, he
+     is answered: "Yes, man, I will get a lady to wash your
+     clothes." Similarly in _Fowler_, Lights and Shadows,...
+     three Years' Experience in Australia. But, at the same time,
+     it is remarkable how seldom a native born white American
+     accepts a fee. On the other hand, Russia is the classic land
+     of fees. There is a popular story in that country to the
+     effect that when God divided the earth among the different
+     nations, they were all satisfied except the Russians, who
+     begged a little drink-money or fee in addition, (_von
+     Haxthausen_, Studien, I, 70.) Similarly in Egypt. (_Ebers_,
+     Durch Gosen zum Sinai, 1873, 31 seq.) The system of feeing
+     servants holds a middle place between the modern system of
+     paying for everything lawfully and the medieval system in
+     which people either rob, donate or beg.]
+
+     [Footnote 173-9: Compare _Garve_ in _Macfarlan_, 90. The
+     wages of English wool workers in 1831 amounted to:
+
+                                 _Tax per capita of the_
+                                 _population for_
+        _In_                     _support of the poor._
+     Leeds,       22--22-1/2s.         5s. 7d.
+     Gloucester,  13--15-1/4s.         8s. 8d.
+     Somerset,    16-3/4--19-3/4s.     8s. 9d.
+     Wilts,       13-7/12--15-5/12s.  16s. 6d.
+
+     _Ure_, Philosophy of Manufactures, 476. After an
+     enthusiastic eulogy of high wages, _McCulloch_ remarks
+     especially that the English poor rates cost more than if the
+     laborers were obliged to provide for themselves by getting
+     higher wages. (Principles, III, 7.) Sad results of the
+     system which came into vogue in the South of England in
+     1795, to supplement wages according to the price of corn and
+     the number of children. Previously the laboring classes
+     married only after the age of 25 and even at 35, and not
+     until they had saved from L40 to L50. After the above
+     mentioned system was adopted, even minors married. (Edinburg
+     Review, LIII, 4, 7.)]
+
+     [Footnote 173-10: _Von Thuenen_, Isolirte Staat., II, 1, 154,
+     gives the following formula as the expression of ideal
+     wages: sqrt(ap), in which a = the necessary requirement for
+     maintenance of the workmen, and p = the aggregate product of
+     his labor. _von Thuenen_ attached so much importance to this
+     formula that he had it engraved on his tomb-stone. But even
+     if it were possible to reduce capital-generating labor and
+     wage-labor to a common denominator, it would not be possible
+     nor equitable to maintain the same dividing measure when
+     capital and labor contributed in very different amounts to
+     the production of the common product. An artist, for
+     instance, who could make costly vessels out of very cheap
+     clay and with cheap fuel would get too little by _von
+     Thuenen's_ law; a mechanic who used a very efficient and
+     costly machine, too much. The fundamental defect in his
+     theory, _von Thuenen_ himself seems to have obscurely felt.
+     Compare the letter in his Lebensbeschreibung, 1868, 239 and
+     _Roscher_, Geschichte der Nat. Oek., in Deutschland, 895 ff.]
+
+
+SECTION CLXXIV.
+
+HISTORY OF THE WAGES OF COMMON LABOR.--IN DECLINING COUNTRIES AND TIMES.
+
+When, circumstances being otherwise unaltered, the aggregate income of a
+nation decreases, the wages of labor are wont to be lower in proportion
+as the points above mentioned, and which are unfavorable to the laborer
+in his competition, appear.[174-1] The worse distribution, also, of the
+national resources, when, instead of a numerous middle class, a few
+over-rich people monopolize all that is to be possessed, diminishes the
+wages of common labor and thus again produces a worse distribution than
+before.[174-2] In a similar way, wages must decline when the mode of
+life of the laboring class, or the quality of their work, has
+deteriorated. Some of these causes may exist transitorily even among
+otherwise flourishing nations; as, for instance, in war times,[174-3] or
+when population for a while grows more rapidly than national wealth. But
+among nations universally declining, they are all wont to meet, and one
+strengthens the other.[174-4] One of the saddest symptoms of such a
+condition is the low value here put upon the life and strength of
+workmen. The cheapness of labor has indeed a charm for enterprising
+spirits, which induces them to employ human labor even where machinery,
+beasts, etc., would economically be better adapted to the performance of
+the work.[174-5] Day-laborers are, on this account, more profitable to
+persons of enterprise (_Unternehmer_=_undertaker_) because they can more
+easily rid themselves of them. But such egotistic calculation should
+have no place even in the case of actual slaves.[174-6]
+
+Besides, it not unfrequently happens, that the laboring class seek to
+oppose the decline of wages by increasing their industry, shortening
+their holidays and leisure, and by drawing their wives and children into
+their work. This may, under certain circumstances, result in an increase
+of the national income, and thus constitute a transition to the
+restoration of high wages, especially if beforehand there was reason to
+complain of the idleness of the working class. But if the other
+circumstances of competition are unfavorable to the working class, if
+especially they used their personally increased income to add to the
+population, it would not be long before they fell back to their previous
+state. In such case, the consequence is, that the same quantity of labor
+has become cheaper; that all permanent profit falls to the capitalists
+and landowners, and all that remains to the laboring class is only
+greater toil, a sadder home-life, and sadder children. The danger of
+such an issue is all the greater, because few things so much contribute
+to reckless marriages and the thoughtless procreation of children, as
+the industrial cooperation of wife and child.[174-7] [174-8]
+
+     [Footnote 174-1: Hence _Adam Smith_ says that it is not the
+     richest countries in which wages are highest, but those
+     which are becoming rich most rapidly.]
+
+     [Footnote 174-2: The classic lands of low wages and
+     pauperism are especially the East Indies and China. A
+     minister of Kienlong was punished after he had extorted
+     about 20,000,000 thalers. (_Barrow_, II, 149.) In the
+     confiscation of the well known _Keschen_, the authorities,
+     according to their own accounts, found 682 pounds of gold
+     and more than 6,000,000 pounds in silver. Considering the
+     colossal banquets of the rich, embracing several hundred
+     courses, of which _Meyen_, Reise um die Erde, II, 390,
+     describes an example, the wretched food of the poor is
+     doubly striking. Count _Goertz_ relates that in Canton, rats
+     and serpents are regularly exposed for sale. (Reise, 445.)
+     The lowness of wages appears from the fact--one of
+     many--that servants frequently get nothing but their board.
+     (_Haussmann_, Voyage en Chine, etc.) In the cities,
+     tradesmen with their tools run hither and thither about the
+     streets begging for employment in the most imploring manner.
+     Thousands live all their lives on rafts. Numberless
+     instances of infanticide from want of food, (Sec. 251.) The
+     influence of these circumstances on the morality of the
+     people is best illustrated by the fact that _Keschen_, when
+     he was ambassador to Thibet, preferred to confide his newly
+     collected treasures to the escort of the French missionaries
+     he persecuted rather than to the mandarins named by himself,
+     so much more highly did he estimate European than Chinese
+     honesty. (Edinburg Rev., 1851, 425 ff.) In the Chinese
+     picture-writing, the word happiness was designated by a
+     mouth well corked with rice. Chinese statisticians speak of
+     mouths (_Maul_) where ours treat of the number of heads or
+     souls. _Ritter_, Erdkunde, II, 1060. More favorable accounts
+     in _Plath_, Muench. Akad., 1873, 784, 788 seq.
+
+     In the East Indies, a great many of the rejected castes live
+     on carrion, dead fish, noxious insects, and even the middle
+     class find wheat flour too dear, and therefore mix it with
+     peas, etc. (_Ritter_, VI, 1143.) It is said that Bengal, in
+     the famine of 1770, lost more than one-third of its
+     inhabitants. (_Mill_, History of British India, III, 432.)
+     Eloquent description of misery in _Rickard_, India, or Facts
+     submitted to illustrate the Character and Condition of the
+     native Inhabitants, II, London, 1832. An immense number of
+     badly paid servants of whom it may however be said that each
+     one accomplishes very little. The Pindaries may pass for an
+     extreme of Indian pauperism, corresponding to the
+     pirate-calamity during the later Roman Republic. (Quarterly
+     Review, XVIII, 466 ff.; _Ritter_, VI, 394 ff.)]
+
+     [Footnote 174-3: Thus, in England, during the last great
+     war, wages rose less than the price of corn, and sank less
+     after it. About 1810, wages were nearly 100 per cent. higher
+     than in 1767; but, on the other hand, the price of wheat,
+     115; of meat, 146; of butter, 130, and of cheese, 153 per
+     cent. (Edinburg Rev., XL., 28.) If it has some times been
+     observed that crime, communistic machinations and
+     revolutionary movements grow less frequent in times of war,
+     the fact is not to be ascribed necessarily to a better
+     condition of the laboring class. It might possibly be the
+     consequence of the strongest and wildest elements of the
+     laboring class finding some other career.]
+
+     [Footnote 174-4: _Adam Smith_, loc. cit., on this point
+     describes China as a stationary country (according to _R.
+     Fortune_, Wanderings in China, 1847, 9, a decided decline
+     has been noticeable there for a long time), and Bengal as a
+     declining one. On the condition of wages among the Romans,
+     _Juvenal_, III, 21 ff., is one of the principal sources.
+     Hence the desire to emigrate because honest labor had no
+     longer any foothold (23 ff.). Poor dwellings of the laboring
+     class, dark, exposed to danger from fire (166, 190 ff.,
+     225), and yet comparatively dear (223 seq.). Numerous crowds
+     of robbers and beggars (302 ff.; IV, 116 ff.; V, 8; XIV,
+     134). On beggary, see _Seneca_, Controv., V, 33. De
+     Element., II, 6. De Vita beata, 25 ff. _Martial_, V, 81,
+     XIV, 1, complains of the absence of outlook among the poorer
+     classes. _Horace_, too, is rich in passages which might be
+     appropriately cited in this connection. Characteristic
+     question of the nabobs, in _Petron._, 48, 5: What on earth
+     is that thing called a pauper?]
+
+     [Footnote 174-5: Thus, in China, the East Indies, etc.,
+     people travel in palanquins borne by men; in a multitude of
+     cases, Chinese commodities are carried in wheelbarrows; and
+     a great many roads are constructed, in reference not to
+     wagons, properly so-called, but to this species of vehicle.
+     How heartless the Chinese, who, before they save a drowning
+     man, first higgle about the reward, and take pleasure in
+     pestilence, famine, etc., because those who survive profit
+     by them. See _Finlaison_, Journey of the Mission to Siam,
+     1826, 62 ff.]
+
+     [Footnote 174-6: Hence _Menander_ (342-290 before Christ)
+     says it is better to be the slave of a good master than to
+     live wretched in freedom. (_Stoboeus_, Flor., 62, Sec. 7.
+     _Meinecke_, Fr. com. Gr., IV, 274.) _Libanios_, too, (Tom.,
+     483, Reiske), in his "Blame of Poverty," represents slavery
+     as better cared for, and freer from worry. Horrible
+     contracts made even in Caesar's time, from want, by freemen,
+     to become gladiator-slaves. _Cicero_, pro Roscio, Am. 6;
+     _Horat._, Serm., II, 7, 58 ff.; _Petron._, 117; _Seneca_,
+     Epist., 37. And so by Justinian, cases of declined freedom
+     are supposed. (L. 15, _Justin._, Cod., VII, 2.) "_Dans une
+     armee on estime bien moins un pionnier, qu'un cheval de
+     caisson, parce que le cheval est fort cher, et qu'on a le
+     pionier pour rien. La suppression de l'esclavage a fait
+     passer ce calcul de la guerre dans la vie commune._"
+     (_Linguet._)]
+
+     [Footnote 174-7: _Sismondi_ is guilty, however, of a
+     philanthropic exaggeration when he says that the labor of
+     children is always fruitless to the laboring classes. (R. P.
+     I., 235.)]
+
+     [Footnote 174-8: The bringing into juxtaposition of the
+     rates of wages in different countries is doubtless one of
+     the most important objects of comparative statistics. Only
+     it is necessary not to confine it to the money amount of
+     wages, but to make it embrace the prices of the principal
+     means of subsistence. Thus, in France, before the outbreak
+     of the French Revolution, a French workman earned a cwt. of
+     bread on an average of 10.5 days; one of meat in 36.8; an
+     English workman, in 10.4 and 25.3 days. (_A. Young._) In the
+     interior of Russia, a female weaver earns, in a day, almost
+     one Prussian _scheffel_ of rye, in Bielefeld, only about
+     one-tenth of a _scheffel_; a table-cloth weaver, in the
+     former place, 18 silver groschens, while the _scheffel_
+     costs from 12 to 15 silver groschens. (_von Haxthausen_,
+     Studien, I, 119, 170.) According to _Humboldt_, the
+     money-wages paid in Mexico were twice as high, and the price
+     of corn two-thirds as dear, as in France. (N. Espagne, IV,
+     9.) According to _Rau_, Lehrbuch, I, Sec. 180, the procuration
+     of the following means of subsistence required in day labor
+     in:
+
+          ==============+============+=========+==========
+                        |            |         |         |
+                        |_Manchester.|_Hanover.|_Hanover.|
+                        |            |         |         |
+                        |  1810-20_  |  1700_  |  1827_  |
+          --------------+------------+---------+----------
+          Cwt. beef,    |   26       |   33    |   35    |
+           "   potatoes,|    1.85    |   ----  |   ----  |
+           "   wheat,   |    5.5     |   ----  |   ----  |
+           "   rye,     |   ----     |    6.5  |    8.7  |
+           "   butter,  |   42.3     |   87    |   64    |
+           "   sugar,   |   96       |  181    |  128    |
+          ==============+============+=========+==========
+                        |_Upper  |             |         |
+                        |Canada. |_Brandenburg.| Gratz.  |
+                        |        |             |         |
+                        | 1830_  |  1820-33_   |1826-45_ |
+          --------------|--------+-------------+----------
+          Cwt. beef,    |  6.6   |     34      |  36     |
+           "   potatoes,| ----   |      1      |   2.68  |
+           "   wheat,   |  2     |      7.6    |  11     |
+           "   rye,     |  1.5   |      5.4    |   8.6   |
+           "   butter,  | 22     |     83      |  84     |
+           "   sugar,   | ----   |     ----    |  ----   |
+          ==============+============+=========+==========
+
+     Estimated in silver, the East Indian laborer earns from L1
+     to L2 a year; the English, L9 to L15; the North American,
+     L12 to L20. (_Senior._) _Hildebrand_, Nat-Oek., I, 195 ff.,
+     assures us that the average rate of wages in Germany, in
+     1848, amounted to 400 thalers a year; in England, to 300
+     thalers; and that the prices of the means of subsistence in
+     the latter country were 1-1/2 times higher than in the
+     former. _Engel_, Ueber die arbeitenden Klassen in England,
+     1845, shows only the dark side of a real picture, and is
+     silent on the other, and is well corrected by _Hildebrand_,
+     I, 170 ff. Excellent statistics in _Sir F. M. Eden_, State
+     of the Poor, I, 491-589. On the more recent times, compare
+     the Edinburgh Review, April, 1851, April, 1862; Quarterly
+     Rev., Oct., 1859, July, 1860. _Ludlow_ and _Jones_, loc.
+     cit. On the situation in France, see _Blanqui's_ report in
+     the Memoires de l'Academie des Sciences morales et
+     politiques, II, 7. _Leplay_, Les Ouvriers des deux Mondes,
+     II, 1858. Very important are the "Reports from Her Majesty's
+     diplomatic and consular Agents abroad respecting the
+     Condition of the industrial Classes, and the Purchase-power
+     of money in foreign Countries." (1871.)]
+
+
+SECTION CLXXV.
+
+WAGE POLICY.--SET PRICE OF LABOR.
+
+Among the artificial means employed to alter the existing rate of wages,
+we may mention first, a rate of wages fixed by governmental authority.
+These have, in many places, constituted an intermediate step between
+serfdom and the free wage-system. In most cases, this measure was
+intended in the interest of the upper classes to prevent the lower
+obtaining the full advantage of their freedom under the favoring
+circumstances of competition.[175-1] In later times, another cause has
+frequently been added to this, viz.: by diminishing the cost of
+production to increase foreign sales. (See Sec. 106.) In the higher stages
+of civilization, nations will scarcely look with favor on the diminution
+of the rightful, for the most part, individually small gains of the most
+numerous, the poorest and most care-worn class of the community.[175-2]
+The purchasers of labor would, in consequence, be badly served, since
+they would have lost the possibility of obtaining better workmen by
+paying higher wages. Hence, there would, probably, be none but mediocre
+labor to be found.[175-3] On the other hand, fixed rates which keep
+within the limits described in Sec. 114 are, under certain circumstances,
+desirable. This is especially the case where the purchasers of labor on
+the one hand, and the buyers of labor on the other, have formed
+themselves into united groups, and where the rate fixed is only in the
+nature a treaty of peace under governmental sanction, when a war over
+prices had either broken out actually or there was danger to fear that
+one would break out. It must not be forgotten, that thus far common
+labor has scarcely had any thing similar to an "exchange."[175-4]
+
+     [Footnote 175-1: The plague known as the black death of
+     1348, which devastated the greater part of Europe, was
+     followed by many complaints on the part of the buyers of
+     labor, of the cupidity and malicious conspiracies of the
+     working classes. (See _supra_ Sec. 160.) Fixed rates of wages
+     under Peter the Cruel of Castile, 1351; contemporaneously in
+     France, Ordonnances, II, 350, and in England, 25 Edw. III,
+     c. 2; 37 Edw. III, c. 3. In France, the wages of a thresher
+     were fixed at the one-twentieth or the one-thirtieth of a
+     _scheffel_, while in present Saxony it is from
+     one-fourteenth to one-twelfth. In England, under the same
+     ruler, who had seen his castle at Windsor built, not by day
+     laborers for wages, but by vassal masons, vassal carpenters,
+     etc., whom he got together from all parts of the kingdom.
+     That the rates might not be evaded, the succeeding king
+     forbade both the leaving of agriculture for industry and
+     change of domicile without the consent of a justice of the
+     peace. (12 Richard II., c. 3.) All such provisions were
+     little heeded in the 16th century. (_Rogers_, the Statist.
+     Journal, 1861, 544 ff.)
+
+     Fixed rates of wages under Henry VII. and Henry VIII., in
+     the interest of workmen. (_Gneist_, Verwaltungsrecht, II,
+     Aufl., 461 ff.) The fact that in 5 Elizabeth, c. 4, another
+     attempt was made to fix the rate of wages by governmental
+     provisions, in which the person paying more than the sum
+     fixed was threatened with 10 days' imprisonment, and the
+     person receiving less with 12, was in part akin to the
+     English poor laws. If a poor man had the right to be
+     eventually employed and supported by the community, it was,
+     of course, necessary that the justice of the peace should be
+     able to determine at what wages anybody should be prepared
+     to work before he could say: I can find no work. Extended by
+     2 James I., c. 6, to all kinds of work for which wages were
+     paid. (_Eden_, State of the Poor, V, 123 ff., 140.) The
+     buyers of labor in the eighteenth century frequently
+     complained that these fixed wages were more to the advantage
+     of workmen than of their masters. (_Brentano_, English
+     Guilds., ed. by _Toulmin Smith_, 1870, Prelim. CXCI.)
+
+     In Germany, the depopulation caused by the Thirty Years' War
+     explains why, before and after the peace of Westphalia, so
+     many diets were concerned with fixing the rate of wages of
+     servants. Compare _Spittler_, Gesch., Hanovers, II, 175.
+     Among the most recent instances of English fixed rates of
+     wages, is 8 George III., for London tailors, and the
+     Spitalfields Act of 1773, for silk weavers who had, a short
+     time before, revolted. Also in New South Wales, about the
+     end of the last century, on account of the high rate of
+     colonial wages. (_Collins_, Account of the English Colonies
+     of New South Wales, 1798.) Later, _Mortimer_, Elements of
+     Politics, Commerce and Finance, 1174, 72, maintains fixed
+     rates of wages to be necessary. In Germany the imperial
+     decree of 1830, tit., 24, and again the ordinance of Sept.
+     4, 1871, provide that each magistrate shall fix the rate of
+     wages in his own district. _Chr. Wolf_, Vernunftige Gedanken
+     vom gesellsch. Leben der Menschen, 1721, Sec. 487, would have
+     the rates so fixed that the laborers might live decently and
+     work with pleasure.]
+
+     [Footnote 175-2: Proposal for a fixed sale of wages in the
+     protocols of the Chamber of Lords of Nassau, 1821, 12.]
+
+     [Footnote 175-3: The Spitalfields Act was repealed in 1824,
+     for the reason that the manufacturers themselves attributed
+     the stationary condition of their industries for a hundred
+     years to the fact that they were hampered by that act.
+     _Ricardo's_ and _Huskisson's_ prophecies, on this occasion,
+     fulfilled by the great impulse which the English silk
+     industries soon afterwards received.]
+
+     [Footnote 175-4: Compare _Brentano_, Arbeitergilden der
+     Gegenwart, II, 288. However, fixed rates of wages equitably
+     arranged, in the establishment of which neither party has
+     been given an advantage over the other, have continued to
+     exist much longer than our distrustful and novelty-loving
+     age would think possible. Thus compositors' wages in London,
+     from 1785 to 1800, from 1800 to 1810, from 1810 to 1816, and
+     from 1816 to 1866, remained unaltered; those of London ship
+     builders, from 1824 to 1867; of London builders, from 1834
+     to 1853, and from 1853 to 1865. (_Brentano_ II, 213. Compare
+     II, 250, 267 ff.)]
+
+
+SECTION CLXXVI.
+
+WAGES-POLICY.--STRIKES.
+
+Where the wages-receiving class feel themselves to be a special class,
+_vis-a-vis_ of the purchasers of their labor, they have frequently
+endeavored, by the preconcerted suspension of labor upon a large scale,
+to force their masters to pay them higher wages, or grant them some
+other advantage.[176-1] It is hard to say whether such strikes have more
+frequently failed or succeeded.[176-2]
+
+As a rule, a war over prices, carried on by such means, and without
+force on either side, must generally issue in the victory of the richer
+purchasers of labor.[176-3] The latter require the uninterrupted
+continuation of labor for their convenience and profit; but the workmen
+need it to live. It is but seldom that the workmen will be in a
+condition to stop work for more than a few months, without feeling the
+sting of hunger. The purchaser of labor can live longer on his capital;
+and the victory here belongs to the party who, in the struggle, holds
+out longest. Hence, a strike that lasts more than six weeks may, for
+that reason alone, be considered a failure. The employers of labor, on
+account of their smaller number and greater education, make their
+counter-coalition much more secret and effective. How many instances
+there are in which labor-saving machines have come into use more rapidly
+than they otherwise would have come but for the influence of these
+coalitions![176-4]
+
+On the other hand, it cannot be ignored that a host of workmen, by means
+of an organization which provides them with a unity of will, such as the
+heads of great enterprises naturally possess, must become much better
+skilled in carrying on a struggle for higher wages. Where wages in
+general tend to rise, but by force of custom, which is specially
+powerful here (Sec. 170), are kept below their natural level, a strike may
+very soon attain its end. And workmen are all the more to be wished
+God-speed here in proportion as employers are slow to decide of their
+own motion upon raising wages, and where, under certain
+circumstances,[176-5] a single cold-hearted master might force all his
+competitors to keep wages down. If even the entire working class should
+follow the example of the strikers, so that all commodities, in so far
+as they are products of labor, should grow dearer to an extent
+corresponding to the rise in wages, there would still remain an
+improvement of the condition of the working class at the cost of the
+interest paid on capital and the profits of enterprise. It is, of
+course, otherwise with the struggle of workmen against the natural
+conditions which determine the rate of their wages (Secs. 161-166) in which
+they might, in turbulent times, possibly succeed[176-6] temporarily, but
+would, in the long run, have to fail.[176-7]
+
+The working class will be best fortified in such a struggle for higher
+wages when their organization is a permanent one, and when they have
+taken care, during good times, to collect a certain amount of capital to
+protect their members, during their cessation from work, against acute
+want. This is the object of the trades-unions as they have grown up in
+England, especially since the total decline of the guild system and of
+governmental provisions relating to apprentices, fixed rates of
+wages[176-8] etc. But it cannot be denied that these unions, although
+democratic in form, often exercise a very despotic sway over their
+members;[176-9] that they have, so far as the employers of labor are
+concerned, and the non-union laborers, gone back to a number of
+measures, outgrowths of the guild and embargo systems, which it was
+fondly hoped had been forever banished by the freedom of
+industry.[176-10] What many of the friends of this system hope it may
+accomplish in the future, viz.: regulate the whole relation between
+capital and labor, and thus, on the whole, control the entire public
+economy of a people,[176-11] is, fortunately, all the more certainly a
+chimera, as any national or universal approximation to this end would be
+the most efficacious way to compel employers of labor to the formation
+of corresponding and probably far superior opposing unions.
+Notwithstanding this, however, I do not doubt that the recent
+development of trades-unions in England is both a cause and an effect of
+the rise in wages in the branches of industry in question, as well as of
+the moral elevation of the condition of the working class which has
+simultaneously taken place.[176-12] The mere possibility of a strike is
+of itself calculated, in the determination of the rate of wages, to
+procure for the equitable purchaser of labor the desirable preponderance
+over the inequitable.[176-13]
+
+     [Footnote 176-1: Even _Boisguillebert_, Traite des Grains,
+     was acquainted with instances of this kind in which from 600
+     to 800 workmen simultaneously left their masters. There are
+     much earlier instances in Italy. Thus, in Sienna, in 1381
+     and 1384, in which the nobility sided with the workmen.
+     (Rerum Ital. Scriptores, XV, 224, 294.) Strikes of
+     journeymen began to be much more frequent in Germany in the
+     guilds, from the time of the prospect of their becoming
+     masters themselves, and of their living in the family of the
+     masters had decreased. On similar strikes at Spires, in
+     1351, at Hagenau in 1409, and Mainz in 1423, see _Mone's_,
+     Zeitschrift, XVII, 56; XIII, 155, and _Hegel,_ Strassb.
+     Chr., II, 1025. A remarkable strike of the Parisian book
+     printers under Francis I. (_Hildebrand's_ Jahrb., 1873, II,
+     375 ff.) In so-called "home manufactures," where the
+     "manufacturer" is both orderer, preparer and seller, but
+     strikes are scarcely possible without much fixed capital.
+     The strike of the factory spinners in Lancashire in 1810
+     caused 30,000 workmen to stop work for four months.
+
+     Among the next following coalitions of labor, those of the
+     Glasgow weavers in 1812 and 1822 were very important. In the
+     latter, two workmen who would not participate with the
+     strikers were blinded with sulphuric acid. In 1818, great
+     strike by the Scotch miners. The Preston strike of 1853
+     lasted 36 weeks. It is said that 6,200 male and 11,800
+     female working people took part in it. (_Athenaeum_, 30
+     Sept., 1854.) Compare _Morrison_, Essay on the Relations
+     between Labor and Capital, 1854. For a history of Swiss
+     strikes, especially of the Zuerich compositors' strike in
+     1873, see _Boehmert_, Arbeiterverhaeltnisse, II, 287 ff. Comic
+     type of a strike of married women in _Aristophanes_,
+     Lysistrata. A practical one in Rome at the departure of the
+     plebeians for the holy mountains, 492 before Christ.
+     (_Livy_, II, 32,) then, on a small scale, on the removal of
+     the pipers after Tiberius, 311 before Christ. (_Liv._, IX,
+     30.)]
+
+     [Footnote 176-2: Instances of successful strikes:
+     Fortnightly Review, Nov. 1865. Similarly in Germany, in
+     1865; but there, in truth, many strikes were only defensive
+     and intended to restore the former thing-value of the
+     declined money (Werke, XIII, 151). The English strikes, in
+     1866 and 1867, failed nearly all, so that wages again
+     declined to their level in 1859, and in many places, to what
+     they had been in the crisis-year 1857. (Ausland, 16 April,
+     1868.) As to how even in Victoria, strikes which opposed a
+     decline of wages from 16 to from 8 to 10 shillings a day
+     failed, after doing great injury, see Statist. Journ., 1861,
+     129 ff.]
+
+     [Footnote 176-3: The Preston strikers of 1853 got even from
+     their non-striking colleagues, L30,000. Had their masters
+     prevented this, the affair would have been terminated much
+     sooner. (Quart. Rev., Oct. 1859.) But employers are much
+     more frequently divided by rivalries than workmen,
+     especially in strikes against new machines or when a
+     manufacturer, who has too large a supply of goods on hand,
+     desires a strike himself. On account of their smaller
+     number, too, they are less in a condition to declare a
+     recusant colleague in disgrace. _Adam Smith's_ remark that
+     coalitions of capitalists are much more frequent than those
+     of workmen, only that much less is said of them, is hardly
+     applicable to our time. (Wealth of Nat., I, ch. 8, p. 100,
+     ed. Bas.) But, since the strike of the London builders in
+     1859, capitalists have begun to form more general opposing
+     unions. On a very energetic one among the ship builders on
+     the Clyde, see _Count de Paris_, Les Associations ouvrieres
+     en Angleterre, 1869, ch. 7. Examples on a smaller scale,
+     Edinburg Review, LXXXIX, 327 ff. On the other hand, a
+     "lock-out" on the part of capitalists is very difficult,
+     from the fact that it is impossible to prevent idle workmen
+     from being supported from the poor fund. Moreover, there can
+     be no greater folly than for the workmen to add insult to
+     their masters to their demand for higher wages, because then
+     the limits within which the latter are willing to continue
+     the business at all, are made much narrower, than they would
+     be on a merely economic estimate.]
+
+     [Footnote 176-4: Thus the "iron man," by which a single
+     person can put from 1,500 to 3,000 spindles in motion; also
+     an improved plane-machine, by means of which several colors
+     can be printed at once. (_Ure_, Philosophy of Manufactures,
+     366 ff.) Machines for riveting cauldrons. (_Dingler_,
+     Polytechnisches Journal, LXXV, 413.)]
+
+     [Footnote 176-5: Compare the statements in the Statist.
+     Journal, 1867, 7.]
+
+     [Footnote 176-6: Thus in several places in 1848, and in
+     Paris in 1789, where even the lackeys and apothecary clerks
+     formed such unions. (_Wachsmuth_, Gesch. Frankreichs im
+     Revolutionszeitalter, I, 178.) Similarly, frequently in
+     isolated factories.]
+
+     [Footnote 176-7: _Thornton_ mentions six instances in which
+     strikes and strike-unions may permanently raise wages: a,
+     when those engaged in an enterprise have a virtual monopoly
+     in their own neighborhood; b, when the country has, for the
+     industry in question, great advantage over other lands; c,
+     when the demand for the product of the industry is necessary
+     on account of an increasing number and increasing capacity
+     to pay of customers; d, when the progress of the arts,
+     especially of machinery, makes the industry more productive;
+     e, when the rise in the rate of wages affects all branches
+     of industry to the same extent, and at the same time; f,
+     when the industry is carried on on so large a scale that it
+     yields greater profit, even while paying a smaller
+     percentage than other industries. (On Labour, III, ch. 4.)
+     It is easy to see that many of these conditions meet in the
+     building industries in large cities.]
+
+     [Footnote 176-8: Compare _Brentano_ in the Preliminary Essay
+     to _T. Smith's_ English Guilds, ch. LXXII ff. The same
+     author's Die Arbeitergilden der Gegenwart Bd., I, 1871.]
+
+     [Footnote 176-9: The greater number of strikes begin with a
+     small minority, generally of the best paid workmen, whom the
+     others follow unwillingly but blindly. (Edinb. Rev., 149,
+     422.) The despotic power of the Unions over their members
+     depends principally on the fact that their treasury serves
+     not only to maintain strikes but at the same time as an
+     insurance fund for old age and sickness, and that every case
+     of disobedience of a member is punished by expulsion, i. e.,
+     with the loss of everything he has contributed. Hence the
+     Quart. Rev., Oct., 1867, advises that these two purposes
+     which are so hard, technically speaking, to reconcile with
+     each other, should be required to be kept separate,
+     especially as most of the unions, considered as benevolent
+     associations, are really insolvent. (Edinb. Review, Oct.,
+     1867, 421 ff.) On the other hand, both the _Count of Paris_,
+     ch. 3, and _Thornton_ are favorable to the admixture of
+     humane and offensive objects in the trades-unions, because
+     the former contribute to make the latter milder. _Brentano_,
+     I, 153, has no great objection to the insolvency shown by
+     the books of the unions _vis-a-vis_ of their duties as
+     insurers, since, hitherto, the subscription of an
+     extraordinary sum has never failed to make up the deficit. A
+     strike is detrimental in proportion as the striking workmen
+     represent more of the previous preliminary operations that
+     go to finish a product; as when, for instance, the 50 or 60
+     spinners in a factory strike, and in consequence, from 700
+     to 800 other workmen are thrown out of employment and forced
+     into idleness against their will. What might not have been
+     the consequence of the great union of the coal miners of
+     Durham and Northumberland, the members of which numbered
+     40,000 men, and stopped work from April to the beginning of
+     September, 1864, so that at last it became necessary to
+     carry Scotch coal to Newcastle! Compare _Engels_, Lage der
+     arbeitenden Klassen in England, 314 ff.]
+
+     [Footnote 176-10: The English unions even forbid their
+     members to exceed the established time of work, or the
+     established task. Thus, for instance, a penalty of one
+     shilling for carrying at any time more than eight bricks in
+     the case of masons, and a similar penalty inflicted on the
+     person's companions who witness the violation of the rule
+     and do not report the guilty party. Equality of wages for
+     all members; piece-wages allowed only when the surplus
+     earned is divided among one's companions. Hence the complete
+     discouragement of all skill or industry above the average.
+     If an employer exceeds the prescribed number of apprentices;
+     if he engages workmen not belonging to the union; if he
+     introduces new machines, a strike is ordered. With all this
+     the severest exclusion respectively of one class of
+     tradesmen by the other. If a carpenter lays a few stones, a
+     strike immediately! (Quart. Rev., October, 1867, 363, 373.)
+     Rigid shutting out of the products of one district from
+     another. (Edinburg Rev., October, 1867, 431.) The poor
+     hand-weavers were thus prevented going from their
+     over-crowded trade into another. (_J. Stuart Mill_,
+     Principles, II, ch. 14, 6.) However, many trades-unions
+     still seem to be free from these degenerations, and the most
+     influential unions the most moderate in their proceedings.
+     (_Count de Paris_, ch. 8, 9; _Thornton_, III, ch. 2.)
+     _Brentano_ expressly assured us that such degeneration of
+     the unions in England is confined to the building
+     trades-unions. (I, 68, 188.)]
+
+     [Footnote 176-11: "They have no notion of contenting
+     themselves with an equal voice in the settlement of labor
+     questions; they tell us plainly that what they aspire to is
+     to control the destinies of labor, ... to dictate, to be
+     able to arrange the conditions of employment at their own
+     discretion." (_Thornton_, III, ch. 1.) The membership of the
+     English trades-unions was estimated, at the Manchester
+     Congress, June, 1868, at 500,000 by some, and at 800,000 by
+     others. _Brentano_, II, 310, speaks of 960,000. Since 1830,
+     there have been frequent endeavors to effect a great
+     combination, with special organizations of the different
+     trades. During recent years, there have been even beginnings
+     of an international organization, although in Germany, for
+     instance, at the end of 1874, there were 345 trades-unions,
+     with a membership of over 21,000. (_M. Hirsch._) A formal
+     theory of workmen's unions to culminate in popular
+     representation, in _Duehring_, Arbeit und Kapital, 1866,
+     especially, p. 233; while the American _Walker_ accuses all
+     such combinations, which used compulsion on any one, of
+     moral high treason against republican institutions. (Science
+     of Wealth, 272.)]
+
+     [Footnote 176-12: The former view, for instance, of _Harriet
+     Martineau_, "The tendence of strikes and sticks to produce
+     low wages" (1834) is now unconditionally shared only by few.
+     When _Sterling_ says that the momentary success of a strike
+     is followed by a two-fold reaction which restores the
+     natural equilibrium, viz.: increase of the number of workmen
+     and decrease of capital (Journal des Econ., 1870, 192), he
+     overlooks not only the length of the transition time which
+     would certainly be possible here, but also that an altered
+     standard of life of the workmen prevents the former, and one
+     of the capitalists the latter. The _Count of Paris_ and
+     _Thornton_ do not doubt that the elevation of the condition
+     of the English working classes, as proved by _Ludlow_ and
+     _Jones_, is to be ascribed, in part, to the effect of the
+     trades-unions. Many of the unions work against the
+     intemperance and quarrelsomeness of their members. The
+     people's charter of 1835, came from the London "workingmen's
+     association."]
+
+     [Footnote 176-13: On the great utility of the arbitration
+     courts between masters and workingmen, by which the struggle
+     for wages is terminated in a peaceable manner and without
+     any interruption of work, see _Schaeffle_, Kapitalismus and
+     Socialismus, 659. More minutely in _Thornton_, III., ch. 5.
+     _Faucher_, Vierteljahrsschr., 1869, III, 302, calls
+     attention to the fact that such "boards" may be abused to
+     oppress small manufacturers.]
+
+
+SECTION CLXXVII.
+
+WAGES-POLICY.--STRIKES AND THE STATE.
+
+Should the state tolerate the existence of strikes or strike-unions?
+Legislation in the past most frequently gave a negative answer to the
+question, as well from a repugnance for high wages as for the self-help
+of the masses.[177-1] But even leaving the above reasons out of
+consideration, every strike is a severe injury to the national resources
+in general,[177-2] one which causes that part especially to suffer from
+which those engaged in the various enterprises and the working class
+draw their income. And, even for the latter, the damage endured is so
+great that it can be compensated for only by very permanently high
+wages.[177-3] How many a weak man has been misled by a long cessation
+from work during a strike, which ate up his savings, into lasting
+idleness and a devil-may-care kind of life. When employers, through fear
+of strikes, keep all large orders, etc. secret, the workmen are not in a
+condition to forecast their prospects and condition even for the near
+future. And in the end a dread of the frequent return of such
+disturbances may cause capital to emigrate.[177-4]
+
+However, where there exists a very high degree of civilization, there is
+a balance of reasons in favor of the non-intervention of
+governments,[177-5] but only so long as the striking workmen are guilty
+of no breach of contract and of no crime. Where every one may legally
+throw up his employment, there is certainly no plausible legal objection
+to all of them doing so at once, and then forming new engagements.
+Coalitions of purchasers of labor for the purpose of lowering wages,
+which are most frequent though noiselessly formed, the police power of
+the state cannot prevent. If now it were attempted to keep the working
+class alone from endeavoring to correspondingly raise their wages, the
+impression would become general, and be entertained with right, that the
+authorities were given to measuring with different standards. Where the
+working classes so sensitively feel the influence of the government on
+the state of their wages, they would be only too much inclined to charge
+every chance pressure made by the circumstances of the times to the
+account of the state, and thus burthen it with a totally unbearable
+responsibility. Since 1824, freedom of competition has prevailed in this
+matter on both sides in England.[177-6] The dark side of the picture
+would be most easily brightened by a longer duration of contracts of
+labor.[177-7]
+
+Whether the trades-unions, when they shall have happily withstood the
+fermentative process now going on, shall be able to fill up the void
+created by the downfall of the economically active corporations of the
+latter part of the middle ages, we shall discuss in our future work, Die
+Nationaloekonomik des Gewerbfleisses. One of the chief conditions
+precedent thereto is the strict justice of the state, which should
+protect members of the unions from all tyranny by their leaders, and
+from violations of the legal rights of non-members.[177-8]
+
+     [Footnote 177-1: Thus even 34 Edw. III., c. 9. Journeymen
+     builders were forbidden by 3 Henry VI., c. 1, to form
+     conspiracies to enhance the rate of wages, under pain of
+     felony. Finally, 39 and 40 George III., c. 106, threatened
+     any one who, by mere persuasion, should induce a workman to
+     leave his master's service, etc., with 2 months in the
+     work-house, or 3 months' imprisonment. In France, as late as
+     June and September, 1791, all conspiracies to raise wages
+     were prohibited under penalty, the incentive to such
+     prohibition being the opposition to all _interets
+     intermediaries_ between the _interets particulier_; and the
+     _interet general_ which is characteristic of the entire
+     revolution. Compare the law of 22 Germinal, 11. The German
+     Empire on the 16th of August, 1731, threatened journeymen
+     strikers even with death, "when accompanied by great
+     refractoriness and productive of real damage." (Art. 15.)]
+
+     [Footnote 177-2: The strike of the spinners of Preston, to
+     compel equal wages with those of Bolton, lasted from October
+     to the end of December, 1836. The spinners got from their
+     treasury 5 shillings a week (previously 22-1/2 shillings
+     wages); twisters, 2 to 3 shillings; carders and weavers
+     lived on alms. In the middle of December, the funds of the
+     union were exhausted. Altogether, the workmen lost 400,000
+     thalers; the manufacturers, over 250,000; and many merchants
+     failed. (_H. Ashworth_, Inquiry into the Origin and Results
+     of the Cotton Spinners' Strike.) The Preston strike of 1853
+     cost the employers L165,000, the workmen, L357,000.
+     (Edinburgh Rev., July, 1854, 166.) The North-Stafford
+     puddlers' strike, in 1865, cost the workmen in wages alone
+     L320,000. Concerning 8 strikes that failed, mostly between
+     1859 and 1861, which cost in the aggregate L1,570,000, of
+     which L1,353,000 were wages lost, see Statist. Journ., 1861,
+     503. A great mortality of the children of workingmen
+     observed during strikes!]
+
+     [Footnote 177-3: _Watts_ assumes that the strikers seek to
+     attain, on an average, an advance in their wages of five per
+     cent. Now, a week is about equivalent to two per cent. of
+     the year. If, therefore, a strike lasted one month, the
+     increase of wages it operates must last one and three-fifths
+     years to compensate the workmen for their loss. A strike
+     that lasts 12-1/2 months would require 20 years to effect
+     the same, and this does not include interest on lost wages.
+     (Statist. Journal, 1861, 501 ff.) However, it is possible
+     that the striking workingmen themselves should lose more
+     than they gained, but that, for the whole working class, the
+     gain should exceed the loss; since those who had not
+     participated in the strike would participate in the
+     increased wages. _Thornton_ is of opinion that employers
+     have won in most strikes, but surrendered in the intervals
+     between strikes, so that now English workmen receive
+     certainly L5,000,000 more in wages than they would be
+     getting were it not for the trades-unions. (III, ch. 3-4.)]
+
+     [Footnote 177-4: By the Norwich strike, about the beginning
+     of the fourth decade of this century, what remained of the
+     industrial life of that city disappeared. (_Kohl_, Reise,
+     II, 363 ff.) Similarly in Dublin. (Quart. Rev., October,
+     1859, 485 ff.) In Cork, the workingmen's union, in 1827,
+     allowed no strange workmen to join them, and, it is said,
+     committed twenty murders with a view to that end. The
+     builders demanded 4s. 1d. a day wages. This discouraged the
+     erection of new buildings, and it frequently happened that
+     they found employment only one day in two weeks. (Edinb.
+     Rev., XLVII, 212.) When workingmen struggle against a
+     natural decline of the rate of wages, they, of course, add
+     to their misfortune.]
+
+     [Footnote 177-5: The grounds on which _Brentano_, following
+     _Ludlow_ and _Harrison_, justifies the intervention of the
+     state, have a very dangerous bearing, inasmuch as they do
+     not suppose, as a condition precedent, a perfectly wise and
+     impartial governmental authority.]
+
+     [Footnote 177-6: 5 George IV., c. 95: "provided no violence
+     is used." Further, 6 George IV., c. 129, and 122 Vict., c.
+     34. The law of 1871 declares the trades-unions lawful,
+     allows them the right of registration, and thus empowers
+     them to hold property. In France, the law of May 25, 1864,
+     alters articles 414 to 416 of the _Code penal_ to the effect
+     that only such strikes shall be punished as happen _a l'aide
+     de violences, voies de fait, manoeuvres frauduleuses_;
+     also coalitions against the _libre exercise du travail a
+     l'aide d'amendes, defenses, proscriptions, interdictions_.
+     But these amendments were rendered rather inoperative by the
+     fact that meetings of more than 20 persons could be held
+     only by permission of the police.]
+
+     [Footnote 177-7: As, for instance, the coal workers in the
+     north of England required a half year's service. So long as
+     the trades-unions consider themselves, by way of preference,
+     as instruments of war, it is conceivable how they oppose all
+     binding contracts for labor. So now among the German
+     journeymen book-printers, and so, also, for the most part,
+     in England. (_Brentano_, II, 108.) In quieter times, when
+     the trades-unions shall have become peace institutions, this
+     will be otherwise. We cannot even enjoy the bright side of
+     the freedom of birds without enduring its dark side! In
+     Switzerland, breaches of contract by railroad officers are
+     guarded against by their giving security beforehand; in
+     manufactures, by the holding back of from 3 to 14 days'
+     wages. (_Boehmert_, Arbeiterverhaeltnisse, II, 91, 388 ff.)]
+
+     [Footnote 177-8: In Switzerland, the trades-unions have
+     shown themselves very powerful against the employers of
+     tradesmen, but rather powerless against manufacturing
+     employers, and thus materially increased the already
+     existing inferiority of the former. (_Boehmert_, II, 401.)
+     They may, however, by further successful development,
+     constitute the basis of a new smaller middle class, similar
+     to the tradesmen's guilds at the end of the middle ages; and
+     indeed by a new exclusiveness, in a downward direction. This
+     would be a bulwark against the destructive inroads of
+     socialism similar to that which the freed peasantry in
+     France were and still are. While this is also _Brentano's_
+     view, _R. Meyer_, Emancipationskampf des vierten Standes,
+     1874, I, 254 ff., calls the trades-unions a practical
+     preparation for socialism to which the English "morally went
+     over" in 1869 (I, 751); which indeed loses much of the
+     appearance of truth from the fact that _Marx_ (_Brentano_,
+     Arbeitergilden, II, 332) and the disciples of _Lassalle_
+     (_Meyer_, I, 312) hold the trades-unions in contempt. _John
+     Stuart Mill_ approves of all trades-unions that seek to
+     effect the better remuneration of labor, and opposes all
+     which would bring the wages paid for good work and bad work
+     to the same level. (Principles, II, ch. 14, 6; V, ch. 10,
+     5.) Compare _Tooke_, History of Prices, VI, 176. Reports of
+     the Commissioners appointed to inquire into the Organization
+     and Rules of Trades-Unions, 1857.]
+
+
+SECTION CLXXVIII.
+
+WAGES-POLICY.--MINIMUM OF WAGES.
+
+The demand[178-1] so frequently heard recently, that the state should
+guaranty an "equitable" minimum of wages, could be granted where the
+natural rate of wages has fallen below that minimum, only on condition
+that some of the working class in the distribution of the wages capital
+(no longer sufficient in all the less profitable branches of business)
+should go away entirely empty handed. Hence, as a rule, in addition to
+that wages-guaranty, the guaranty of the right to labor is also
+required. But as useful labor always finds purchasers (the word "useful"
+being here employed in the sense of the entire economy of a people, and
+understood in the light of the proper gradation of wants and the means
+of satisfying them), such a right to labor means no more and no less
+than that the state should force labor which no one can use, upon
+others.[178-2] Something similar is true of Louis Blanc's proposition
+that the rate of wages of the workmen should be determined and regulated
+by their own votes and among themselves.[178-3]
+
+All such measures are injurious in proportion as they, by extending aid
+and the amount of the minimum, go beyond the limits of benevolence, and
+approach those of a community of goods. (Sec. 81 ff.) However, if they
+would be lasting and not pull workmen rapidly down to the very depths of
+universal and irremediable misery, these measures should be accompanied
+by the bestowal of power on the guarantor to hold the further increase
+of the human family within bounds.[178-4]
+
+The condition of workmen can be continued good or materially improved
+only on condition that their numbers increase less rapidly than the
+capital destined for wages. The latter increases usually and most surely
+by savings. But only the middle classes are really saving. In England,
+for instance, the national capital increases every year by at least
+L50,000,000, while the working classes spend at least L60,000,000 in
+tobacco and spirituous liquors, _i. e._, in numberless instances, only
+for a momentary injurious enjoyment by the adult males of the class, one
+in which their families have almost no share. According to this, every
+compulsory rise in wages would be a taking away from the saving class
+and a giving to a class that effect no savings. Is not this to act after
+the manner of the savages who cut down a fruit tree in order more
+conveniently to relish its fruit?[178-5]
+
+Benjamin Franklin calls out to workmen and says: If any one tells you
+that you can become rich in any other way than through industry and
+frugality, do not listen to him; he is a poisoner! And, in fact, only
+those changes permanently improve the condition of the working classes
+which are useful to the whole people: enhanced productiveness of every
+branch of business in the country, increased capital, the growth (also
+relative) of the industrial middle classes, the greater education,
+strength of character, skill and fidelity in labor of workmen
+themselves. Much especially depends upon their foresight and
+self-control as regards bringing children into the world. Without this
+latter virtue even the favorable circumstances would be soon trifled
+away.[178-6]
+
+     [Footnote 178-1: Compare, besides, the Prussian A. L. R.,
+     II, 19, 2. In _Turgot_, _droit du travail_, and _droit au
+     travail_ are still confounded one with the other. Oeuvres
+     ed. _Daire_, II, 302 ff; especially 306. In such questions,
+     people generally think only of factory hands. But have not
+     writers just as good a _droit au travail_ to readers whom
+     the state should provide them with, lawyers to clients and
+     doctors to patients?]
+
+     [Footnote 178-2: _L. Faucher_ calls the _droit au travail_
+     worse than the equal and compulsory distribution of all
+     goods, because it lays hands on not only present products
+     but even on the productive forces. It supposes that
+     unlimited production is possible; that the state may
+     regulate the market at pleasure to serve its purposes; that,
+     in fact, the state can give without having first taken what
+     it gave. (Melanges d'Economie politique, II, 148 ff.) The
+     French national assembly rejected the "right to labor" on
+     the 15th of September, 1848, by 596 ayes to 187 nays, after
+     the provisional government had proclaimed it, February 25.
+     Le Droit au Travail a l'Assemblee nationale avec des
+     Observations de _Faucher, Wolowski, Bastiat_ etc., by _J.
+     Garnier_, Paris, 1848.]
+
+     [Footnote 178-3: _L. Blanc_, De L'Organization du Travail,
+     1849.]
+
+     [Footnote 178-4: "Every one has a right to live. We will
+     suppose this granted. But no one has a right to bring
+     creatures into life to be supported by other people. Whoever
+     means to stand upon the first of these rights must renounce
+     all pretension to the last.... Posterity will one day ask
+     with astonishment what sort of people it could be among whom
+     such preachers could find proselytes." (_J. S. Mill_,
+     Principles, II, ch. 12.)]
+
+     [Footnote 178-5: Compare _Morrison_, loc. cit. Quarterly
+     Rev., Jan. 1872, 260. The English savings in the savings
+     banks, between 1839 and 1846, increased yearly in amount
+     only L1,408,630, and scarcely half of this came from
+     wages-workmen in the narrower sense of the term. What the
+     latter contribute to the fund for the old and sick is not
+     really productive capital but only individually deferred
+     consumption. Let us suppose that a man had an income of
+     $3,000 a year, of which he laid out yearly $2,000 ($1,000
+     for wages, $1,000 for rent and interest on capital), and
+     that he capitalizes $1,000. If now this man were, either
+     through philanthropy or in furtherance of socialism, to
+     double the wages he paid, the result would not be
+     detrimental to the economic interests of the whole country
+     only on the supposition that working classes who received
+     the increased wages should either save what he is no longer
+     able to save, or that by inventions or greater personal
+     skill, etc., they should increase the national income.]
+
+     [Footnote 178-6: According to _Hildebrand's_ Jahrbb., 1870,
+     I, 435, 193, North American workmen, the quality of work
+     being supposed the same, now accomplish from 20 to 30 per
+     cent. less than before 1860. Thus, in 1858, in New York, a
+     steam engine was manufactured for $23,000, in 2,323 work
+     days. In 1869, a similar one was built for $40,000 in 3,538
+     days. In the former case, the manufacturer made a profit. In
+     the latter, he lost $5,000.
+
+     _John Stuart Mill_, II, ch. 13. Against the
+     "philanthropists" who find it hard to preach to the poor,
+     the only efficacious means of improving their condition,
+     _Dunoyer_, L. du T., IV, ch. 10, says: The rich _do_ employ
+     it, although they have much less need of it! Even _Marlo_
+     admits that a guaranty of the right to labor, without any
+     measures to limit population, would, in a short time, and
+     irredeemably lead the country to destruction. (Weltoekonomie,
+     I, 2, 357.) _von Thuenen_, der isolirte Staat., II, 1, 81
+     ff., would take a leap out of the vicious circle that those
+     who live by the labor of their hands can produce no rise in
+     their wages, because they are too little educated to hold
+     their increase properly in check; and that, on the other
+     hand, they cannot give their children a decent education,
+     because their wages are too low; by suggesting that
+     educational institutions should be established by the state,
+     and that these should elevate the subsequent generation of
+     workmen intellectually.]
+
+
+
+
+CHAPTER IV.
+
+INTEREST ON CAPITAL.
+
+
+SECTION CLXXIX.
+
+THE RATE OF INTEREST IN GENERAL.
+
+Interest on capital,[179-1] or the price paid for the use of capital,
+should not be confounded with the price of money (Sec. 42); although in
+common life people so frequently complain of want of money where there
+is only a want of capital, and sometimes even when there is a
+superabundance of money.[179-2] This error is connected with the fact,
+that for the sake of convenience, loans of capital are so often effected
+in the form of money and that they are always at least estimated in
+money; but neither of these things is essential.
+
+In reality, however, we as seldom meet with interest[179-3] pure and
+simple, as we do with rent pure and simple. A person who works with his
+own capital can, at best, by a comparison with others, determine where,
+in the returns of his business, wages stop and interest begins.[179-4]
+And even in the loaning of capital, it depends largely on supply and
+demand, whether the creditor shall suffer a deduction in consequence of
+the absence of care and labor attending his gain, and whether the
+debtor, in order to get some capital at all, shall sacrifice a part of
+the wages of his labor.[179-5] When Adam Smith assumes it to be the rule
+that the "profit of stock" is about twice as great as the "interest of
+money,"[179-6] it is evident that a considerable amount of what is
+properly wages or profit of the employer (_Uhternekmer_ = undertaker) is
+included in the former.
+
+Many businesses have the reputation of paying a very large interest on
+the capital employed in them, when in reality they only pay the
+undertaker of them wages unusually high as compared with the amount of
+capital employed in them. Apothecaries, for instance, are called in some
+places "ninety-niners," because it is said that they earn 99 per cent.
+To discover the error, it would be sufficient to inquire the rate of
+interest on the capital borrowed by the apothecary on hypothecation, for
+instance, to enlarge his industry. But on the other hand, such a man who
+has more than any other manufacturer to do with the most delicate
+materials and with them in greater variety, requires proportionately
+greater caution and knowledge. Besides, as the guardian of the health
+and life of so many, and even as the comptroller of physicians, he
+should be a man who inspired universal and unqualified confidence.[179-7]
+By the rate of interest customary in a country, we mean the average rate of
+the interest on money-capital employed safely and without trouble.
+
+     [Footnote 179-1: In the case of fixed capital, we generally
+     speak of rent; in the case of circulating capital, of
+     interest. If interest be conceived as a fractional part of
+     the capital itself, the relation between the two is called
+     "the rate of interest," most generally expressed as a
+     percentage, and for one year.]
+
+     [Footnote 179-2: In Russia, great depreciation of the
+     assignats, and yet the people complained of a "want of
+     money." (_Storch_, Handbuch, II, 15.) According to the San
+     Francisco correspondent of the Times, Jan. 31, 1850, one per
+     cent. a day discount was paid there! Compare _North_,
+     Discourse on Trade, 11 seq.]
+
+     [Footnote 179-3: Gross interest and net interest
+     corresponding to the difference between gross product and
+     net product.]
+
+     [Footnote 179-4: This is the natural rent of capital in
+     contradistinction to the stipulated rent. (_Rau_, Lehrbuch,
+     I, Sec. 223.)]
+
+     [Footnote 179-5: Thus, for instance, a so-called beginner
+     who is conscious of possessing great working capacity, but
+     who possesses for the time being little credit. _Tooke_,
+     Considerations on the State of the Currency, 1826,
+     distinguishes three kinds of capitalists: a, those who are
+     averse to running any risk whatever or incurring any
+     trouble, or are not able to incur any risk or trouble, for
+     whom every great increase of the sinking fund lowers the
+     rate of interest, and every war loan raises it; b, those who
+     will run no risk, but who are not averse to the trouble of
+     looking after their investments and of endeavoring to obtain
+     a higher rate of interest; c, such as, to obtain a higher
+     rate of interest, unhesitatingly risk something. Borrowers
+     he divides thus: a, those who employ the borrowed capital
+     and their own in such a way as to enable them to meet their
+     obligations and besides to earn a reasonable profit; b,
+     those who need others' capital to make up for the momentary
+     failure of the productiveness of their own; lastly c,
+     unproductive consumers.]
+
+     [Footnote 179-6: Wealth of Nat., I, ch. 9. The gross product
+     of English cotton industry was, in 1832, estimated at
+     L32,000,000, viz: L8,000,000 worth of material, L20,000,000
+     wages, L2,000,000 interest, L2,000,000 undertaker's profits.
+     (_Schoen_, Nat. Oek, 104.)]
+
+     [Footnote 179-7: _Adam Smith_, I, ch. 10, 1: where the
+     reasons why a shop-keeper in a small town apparently gets a
+     larger interest than one in a large city, and yet gets rich
+     less frequently, are developed. The high profit made from
+     industrial secrets, Adam Smith very correctly considers
+     wages (I, ch. 7). Why not also that made by inn-keepers? (I,
+     ch. 10, 1.) When the returns of a business differ according
+     to circumstances which depend on the person of the conductor
+     of the business himself, and may by him be transferred into
+     another business, etc.; when the competition in it is
+     determined by personal agreeableness or disagreeableness, it
+     is evident that the larger returns are to be ascribed rather
+     to the highness of wages than of the rate of interest. The
+     profit also which a second-hand hirer makes is wages.
+     (_Riedel_, Nat. Oek., 376.)]
+
+
+SECTION CLXXX.
+
+RATE OF INTEREST IN GENERAL.--ITS LEVEL.
+
+Within the limits of the same national-economic territory, the different
+employments of capital tend uniformly to pay the same rate of
+interest.[180-1] If one branch of business were much more profitable
+than another, it would be to the interest of the owners of capital to
+allow it to flow into the former and out of the latter, until a level
+was reached.[180-2]
+
+The most noticeable exception to this rule is only an apparent one. The
+revenue (_Nutzung_) derived from the use of capital must not be
+confounded with its partial restoration.[180-3] Thus, for instance, the
+rent of a house, if the entire capital is not to be sooner or later
+consumed entirely, must embrace, besides a payment for the use of the
+house, a sum sufficient to defray the expenses of repairing it, and even
+to effect a gradual accumulation of capital for the purpose of
+rebuilding. The risk attending the investment of capital plays a very
+large part and must be taken into special consideration. If the risk in
+a business be so great that ten who engage in it succeed and ten fail,
+the returns of the former, which are more than double those usual in the
+country, in reality pay, when the ten who failed are taken into the
+account, only the rate of interest customary in the country. The risk
+may depend on the uncertainty of the person to whom the capital is
+confided;[180-4] on the uncertainty of the branch of business in which
+it is intended to employ it,[180-5] or on the uncertainty of the
+commercial situation in general; but especially may it depend on the
+uncertainty of the laws.[180-6] The temporary lying idle of capital, for
+instance, in dwelling houses at bathing places during the winter season,
+increases the rate of interest much more than it does the rate of wages
+in the corresponding case of the lying idle of labor; for the reason
+that there is something pleasurable in the repose of the latter.
+(_Senior._) On the whole, the vanity of mankind has an effect upon the
+rate of interest similar to that which it has on the rate of wages. (See
+Sec. 168.) It causes the small chances of loss to be estimated below their
+real value, and the extraordinary chances of gain above it.[180-7]
+
+     [Footnote 180-1: Compare _Harris_, Essay on Money and Coins,
+     13. _Per contra, Ganilh_, Dictionnaire analyt., 107.
+     According to _Hermann_, Staatsw. Untersuchungen, 147, a
+     product which withdraws an amount of capital = _a_ from the
+     immediate use of its owner for _n_ months must bring in in
+     its price a surplus, over and above the outlay of capital,
+     which would bear the same ratio to the profit from another
+     product which employed an amount of capital = _b_, _m_
+     months, that _an_ bears to _bm_.]
+
+     [Footnote 180-2: The class of bankers, etc. which precisely
+     in the higher stages of civilization is one so highly
+     developed, is called upon to adjust these differences.]
+
+     [Footnote 180-3: Life annuities and annual revenues, _a
+     fonds perdu_.]
+
+     [Footnote 180-4: Hence, for instance, good men engaged in
+     industrial pursuits who employ borrowed capital productively
+     pay lower interest than idlers who are suspected of desiring
+     only to spend it in dissipation. High house-rent usually
+     paid by proletarians.]
+
+     [Footnote 180-5: Thus even in _Anderson's_ time, it was
+     necessary that the profit of one good year in the whale
+     fishery should compensate for the damage caused by six bad
+     ones. (Origin of Commerce, III, 184.) Slave-traders made
+     their calculations to lose from three to four out of five
+     expeditions. (Athenaeum, May 6, 1848) Similarly in smuggling
+     and contraband. High rate of interest in gross adventure
+     trade and bottomry contracts, frequently 30 and even 50 per
+     cent.; in ancient Athens, for a simple voyage to the Black
+     Sea, 36 per cent., while the rate of interest customary in
+     the country was only from 12 to 18 per cent.; the interest
+     paid by rented houses only 8-1/7, and by land leases only 8
+     per cent. (_Bockh_, Staatshaushalt der Athener, I, 175 ff.;
+     _Isaeus de Hagn._, Hered., 293) In Rome, before Justinian's
+     time, maritime interest was unlimited. (_Hudtwalker_, De
+     Foenore nautico Romano, 1810.) And so in the manufacture of
+     powder, the frequent explosion of the mills has to be taken
+     into account: in France and Austria, 16 per cent. per annum.
+     (_Hermann_, Principien, 119.) Here belong those new
+     enterprises which, when they succeed, pay a high profit.
+     _Thaer_, in reference to this insurance premium, says: if
+     the capital employed to purchase a landed estate yields 4
+     per cent., the inventory (_Inventar_) should bring in at
+     least 6, and the working capital 12 per cent. (Ration.
+     Landwirthschaft.)]
+
+     [Footnote 180-6: Compare _supra_, Sec. 91; _infra_, Secs. 184,
+     188.]
+
+     [Footnote 180-7: Thus _Friedr. Perthes_, in _Politz_,
+     Jarhbuechern, Jan., 1829, 42, thinks that the publication of
+     scientific books in Germany, since 1800, caused, on the
+     whole, a loss of capital. In the Canadian lumber trade,
+     also, speculators, in the aggregate, lost more than was
+     gained. Yet the business goes on because of its lottery
+     character. (_John Stuart Mill_, II, ch. 15, 4.) In
+     lotteries, it is certain that the aggregate of players lose.
+     So too in speculation in English stocks, on account of the
+     costs to be paid the state. In the case of frightful losses,
+     which may afford food for the imagination, the reverse is
+     found. Thus, for instance, in England, fire insurance, stamp
+     duties included, was paid for at a rate five times as high
+     as mathematical calculation showed it to be worth.
+     (_Senior_, Outlines, 212 ff.) Much here depends naturally on
+     national character, which, in England for instance, or in
+     the United States, is much more adventurous than in many
+     quiet regions of continental Europe.]
+
+
+SECTION CLXXXI.
+
+RULE OF INTEREST IN GENERAL.--CAUSES OF DIFFERENT RATES.
+
+The real exceptions to the above rules are caused by a prevention of the
+leveling influx and outflow of capital. Among nations in a low stage of
+civilization, there is wont to be a multitude of legal impediments in
+this respect. The existence of a difference of classes, of privileged
+corporations, etc., not only restrains the transition of workmen, but
+also of capital from one branch of industry to another. But even the
+mere routine of capitalists, that blind distrust of everything new so
+frequently characteristic of easily contented men, may produce the same
+result.[181-1] In the higher stages of civilization, patents for
+inventions and bank privileges, are causes of a lastingly higher rate of
+interest than is usual in the country.[181-2] Finally, since in many
+enterprises only a large amount of capital can be used at all, or at
+least with most advantage, the aggregation of which from many small
+sources is ordinarily much more difficult than the division of a large
+one into small fractional parts; the rate of interest for very small
+amounts of capital, and especially in the higher stages of civilization,
+is usually lower than that of large amounts of capital. We need only
+mention interest paid by savings-bank investments.[181-3]
+
+If circulating capital has been changed into fixed capital, its yield
+will depend upon the price of the particular goods in the production of
+which it has been made to serve. Compared with the cost of restoration
+of fixed capital, this yield may, in a favorable case, constitute an
+extraordinarily high rate of interest, in an unfavorable a very low one;
+and the former of these two extremes has a greater chance of being
+realized, in proportion as it is difficult to multiply fixed capital of
+the same kind; the latter, the more exclusively it can be employed in
+only one kind of production, and the longer time it takes to be used up
+by wear.[181-4] When fixed and circulating capital cooperate in
+production, the latter, because it can be more easily withdrawn, but
+also more easily replaced, first takes out its own profit, that is the
+profit usual in the country and leaves all the rest to the former. When
+fixed capital is sold, practically no attention is paid to what it
+originally cost. The purchaser pays only for the prospective revenue it
+will yield, which he capitalizes at the rate of interest usual in the
+country. The seller henceforth looks upon his gain as an accretion to
+capital, his loss as a diminution of capital, and no longer as high or
+low interest.[181-5] That accretion might be considered the wages, paid
+once for all, for the intelligent labor which governed the original
+investment of the capital, and _vice versa_.
+
+     [Footnote 181-1: Thus the rate of interest in the Schappach
+     valley remained for a long time much lower than in the
+     vicinity, for the reason that the peasantry who had grown
+     rich through the lumber trade possessed notwithstanding
+     little of the spirit of enterprise. (_Rau_, Lehrbuch, I, Sec.
+     233.)]
+
+     [Footnote 181-2: Here the law produces a species of
+     artificial fixation.]
+
+     [Footnote 181-3: _Von Mangoldt_, Unternehmergewinn, 150.]
+
+     [Footnote 181-4: In other words, the more fixed they are.
+     Thus, for instance, dwelling houses in declining cities,
+     canals, etc. which have been supplanted by better commercial
+     routes; or again, the shafts and stulms of a mine which has
+     been abandoned. When Versailles ceased to be a royal
+     residence, the value of inhabited houses sank to one-fourth
+     of what it had been. (_Zinkeisen_ in _Raumer's_ histor.
+     Taschenbuch, 1837, 426.) A rate of interest greater than
+     that usual in a country is seldom found where freedom of
+     competition prevails, since it is necessary there to
+     distinguish between rent and interest on capital. When in an
+     open city, the capital employed in the construction of
+     dwelling houses _detractis detrahendis_ pays 8 per cent.,
+     while the rate of interest customary in the country is only
+     4 per cent., the supply of houses will grow continually
+     greater. Only the difficulties in the way of transferring
+     capital from one business to another could here retard the
+     leveling process, which where the political prospect for
+     instance was bad, might last a long time--one of the
+     principal reasons why, in 1848, the rent of houses declined
+     much less than their purchase prices. The conjuncture was
+     not serious enough to prevent the increase of population;
+     but it entirely stopped the building of new houses. On the
+     other hand, a bridge or railroad company may maintain a high
+     rate of profit because competition cannot exist in the face
+     of the great expense such enterprises require; but
+     especially because the party who has here the advantage of
+     priority may lower the price of transportation to such a
+     point as to entirely discourage his rival. Compare
+     _Hermann_, Staatsw. Untersuchungen, 145 ff. Interesting
+     example of the London gas and water companies in _Senior_,
+     Outlines, 101.]
+
+     [Footnote 181-5: Thus, for instance, Leipzig-Dresden
+     railroad stock cost originally 100 thalers per share, and
+     was taken at that rate. The yearly dividends amounted in
+     1856 to 13 thalers; that is, 13 per cent. for the original
+     stockholders. But a person who on the 30th September, 1856,
+     paid 285 thalers for a share, received but an interest of
+     4-1/2 per cent. on his capital. It is characteristic, how
+     _Serra_, Sulle Cause, etc., 1613, I, 9, calls the high and
+     the low rate of interest _prezzo basso e alto delle
+     entrate_.]
+
+
+SECTION CLXXXII.
+
+VARIATIONS OF THE RATE OF DISCOUNT.
+
+The fact that in commerce, etc., the rate of interest on capital loaned
+for short periods of time (discount) is subject to great fluctuations,
+while the mortgage rate of interest, for instance, remains the same
+throughout, depends on similar causes.[182-1] Yet there are
+contingencies in trade which, when taken immediate advantage of, promise
+enormous profits, but which may disappear within a month; risks of the
+most dangerous kind which can be conjured only by the immediate aid of
+capital. These are both sufficient grounds of a high rate of interest.
+Again, there are times of the profoundest calm in the commercial world,
+during which capitalists are perfectly willing to make loans at a low
+rate of interest, provided they are sure to be able to get back their
+capital with the first favorable breeze that blows. Agriculture is too
+immovable to come opportunely to the assistance of capitalists, here as
+a receiver and there as a loaner of capital. As the cycle of its
+operations is gone through usually only in a series of years, sudden
+influxes or outflows of capital would cause it the greatest
+injury.[182-2]
+
+     [Footnote 182-1: _Nebenius_, Oeff. Credit, I, 74 ff. Thus,
+     Hamburg discount towards the end of the last century
+     fluctuated between 2-1/2 and 12 per cent., while the capital
+     invested in agriculture brought an interest almost
+     invariably of 4 per cent. (_Buesch_, Geldumlauf, VI, 4, 19.)
+     At the same time, in Pennsylvania, the usual rate of
+     interest was 6 per cent. per annum, and the rate of discount
+     not unfrequently from 2 to 3 per cent. a month. (_Ebeling_
+     Geschichte und Erdbeschreib. von Amerika, IV, 442.) During
+     the crisis of 1837, it happened that 1/4 per cent. a day was
+     paid. (_Rau_, Archiv. N. F. IV, 382.) In the Prussian ports,
+     during the crisis of 1810, it is said that in July the rate
+     of discount was 2-1/2 per cent. a month. (_Tooke_, Thoughts
+     and Details, I, 111.) In Hamburg and Frankfort the rate of
+     discount rose in the spring of 1848, but declined in June to
+     2; until December it was 1-1/4, until the summer of 1849,
+     3/4 per cent. (Tueb. Zeitschr., 1856, 95.) Rate of discount
+     in France, about 1798, at least 2 per cent. a month.
+     (_Buesch_, loc. cit., IV, 52.) Half a year previous, capital
+     employed in the purchase of land paid an interest of from 3
+     to 4 per cent. Legal interest was 5 per cent.; discount, at
+     most, 6 per cent.; in very prosperous times 8-9, per cent.
+     (_Forbonnais_, Recherches et Considerations, I, 372.)]
+
+     [Footnote 182-2: Remarkable case in _Cicero's_ time in which
+     bribery, carried on on a large scale, raised the rate of
+     discount from 4 to 8 per cent. _Cicero_ ad. Quint. M, 15;
+     ad. Att. IV, 15.]
+
+
+SECTION CLXXXIII.
+
+EFFECT OF INCREASED DEMAND FOR LOANS.
+
+The price paid for the use of capital naturally depends on the relation
+between the supply and demand, and especially of circulating capital.
+The increase of the supply need no more unconditionally lower the rate
+of interest than the price of any other commodity. If 50 hunters kill
+1,000 deer yearly, and give 100 deer per annum as interest to the
+capitalists who provided them with ammunition and rifles, a second
+capitalist with an equal number of rifles and an equal amount of
+ammunition may appear on the scene. If now 2,000 deer a year are killed,
+the rate of profit of the capitalists will probably remain the same. But
+if the woods are not rich enough in game for this, or the hunters not
+numerous enough, too indolent, or too easily satisfied, the rate of
+interest falls.[183-1]
+
+The difficulties in the way of the desired increase of capital are here
+of great importance. The smaller the surplus over and above their
+absolutely necessary wants, which the people produce, the less their
+tendency to make savings, the less the inclination to capitalization;
+and the less the security afforded by the law is, the higher must the
+rate of interest be to induce people to face these difficulties. We may
+very well transfer the idea of cost of production to this
+condition.[183-2]
+
+The demand for capital depends, on the one hand, on the number and the
+solvability of borrowers, especially of non-capitalists like landowners
+and workmen; and, on the other hand, on the value in use of the capital
+itself. Hence the growth of population is, other circumstances being the
+same, a means to raise the rate of interest; because it infallibly
+increases the competition of borrowers of capital, even if the increased
+rate must take place at the expense of wages. The solvability or paying
+capacity of the land-owning class as contrasted with the capitalists
+can, in the last analysis, depend only on the extent and fertility of
+their lands and on the quality of their agricultural husbandry; the
+solvability or paying capacity of the working class, only on their skill
+and industry. Where these have grown, an increase of the rate of
+interest may be found in connection with an absolute growth of the rate
+of wages and of rent, because the aggregate income of the nation has
+become greater.
+
+The value in use of capital, which is more homogeneous in proportion as
+it has the character of circulating capital (_res fungibiles_) is, in
+most instances, synonymous with the skill of the working class, and the
+richness of the natural forces connected with it. The deciding element,
+therefore, is the yield of the least productive investment of capital
+which must be made to employ all the capital seeking employment. This
+least productive employment of capital must determine the rate of
+interest customary in a country precisely as cost of production on the
+most unfavorable land determines the price of corn (Secs. 110, 150), and as
+the result of the work of the laborer last employed does the rate of
+wages. (Sec. 165.)
+
+What portion of the total national income, after deduction is made of
+rent, shall go to the capitalists and what portion to the working class,
+will depend mainly on whether the capitalists compete more greedily for
+labor or the laboring classes for capital.[183-3] If, for instance,
+capital should increase more rapidly than population, there must be a
+relative increase in wages, and _vice versa_.[183-4] This is true
+especially of that peculiar kind of higher wages which we shall (Sec. 145,
+ff.) designate as the "undertaker's profit." The smaller the number of
+persons engaged in enterprises is, in comparison with the number of
+retired persons who live on their rents, incomes, etc., the smaller is
+the portion of the so-called net profit of enterprise the latter must be
+satisfied with in the shape of interest.[183-5]
+
+     [Footnote 183-1: It is one of _Ricardo's_ (Principles, ch.
+     21) chief merits, that he demonstrated the groundlessness of
+     the opinion that the mere increase of capital must, on
+     account of the competition of capitalists, lower the rate of
+     interest, as is assumed by _Adam Smith_, I, ch. 9, _J. B.
+     Say_, Traite, II, 8, and others. Compare also, _John Stuart
+     Mill_, Principles, IV, ch. IV, 1.]
+
+     [Footnote 183-2: _Storch_, Handbuch, II, 20.]
+
+     [Footnote 183-3: Frequent withdrawals of capital must, other
+     circumstances being the same, temporarily raise the rate of
+     interest. In the long run, however, the question is decided
+     by this: whether public opinion considers labor a greater
+     sacrifice than the saving of capital. Compare _Roesler_,
+     loc. cit., 8.]
+
+     [Footnote 183-4: Compare _Hermann_, Staatsw. Unters., 240
+     ff. Very much depends on whether the new increased
+     consumption (of workmen when wages are rising, of
+     capitalists when wages are declining) is of goods which are
+     mainly the product of large capital, large factories, etc.,
+     or chiefly of common labor, (_von Mangoldt_, Grundriss, 155
+     seq.) When _Adam Smith_ suggests that the relation between
+     wages and the profit of capital is determined by this:
+     whether there is a market demand for more work or more
+     commodities, for more "work to be done" or "work done" (I,
+     ch. 7), he is, spite of appearances, very unsatisfactory.
+     _Malthus_ distinguishes a restrictive principle of the rate
+     of interest, viz.: the return made to the least productive
+     agricultural capital, and a regulative one, viz.: the
+     reciprocal relation between demand and supply of capital and
+     labor. (Principles, ch. 5, sec. 4.) _Ricardo_, ch. 6, makes
+     the profit of capital at all times and in every country
+     depend on the quantity of labor which it is necessary to
+     expend on the land which pays no rent, in order to satisfy
+     the wants of workmen--a very correct theory.
+
+     Only _Ricardo_ himself (ch. 21) and his school postulate
+     altogether too unconditionally that their wants would always
+     coincide with the minimum of maintenance or support. Thus,
+     for instance, _J. S. Mill_, Principles, IV, ch. 3, 4.
+     However, _Mill_ instead of _Ricardo's_ "wages" employs the
+     better expression, "cost of labor." _Senior_ teaches that
+     the distribution of the aggregate result between laborers
+     and capitalists depends on the anterior course of both
+     classes: on the value of the capital previously employed by
+     capitalists to produce the means of satisfying working men's
+     wants, and on the number of workmen which the previous
+     laboring population have brought into existence. (Outlines,
+     188 ff.) Concerning _von Thuenen's_ vain attempt at a general
+     formula, see _supra_, Sec. 173. _Fourier's_ idea that 5/12 of
+     the product should be distributed among labor, 3/12 among
+     talent, and 4/12 among capital, is entirely baseless. (N.
+     Monde, 309 ff.) _Considerant_, Destinee sociale, 192 ff. As
+     early a writer as _H. Boden_, Fuerstliche Machtkunst, 1700
+     and 1740, 42, came strikingly near the truth. According to
+     him, a low rate of interest is produced by four
+     circumstances: surplus capital, a dearth of landed estates,
+     a want of credit and exact justice, and lastly, the heavy
+     taxation of capital.]
+
+     [Footnote 183-5: Thus, in the last century, Spanish
+     capitalists loaned capital readily to sure commercial
+     companies, at from 2 to 3 per cent. per annum. (_Bourgoing,_
+     Tableau de l'Espagne, I, 248.) The contemporary low rates of
+     interest in Hannover, _Buesch_, Geldumlauf, VI, 4, 12,
+     endeavors to explain by the absence of opportunities for
+     investment, as no one dared to loan to any extent on fiefs
+     or on the land of the peasantry, and because there was no
+     law governing bills of exchange, etc.]
+
+
+SECTION CLXXXIV.
+
+HISTORY OF THE RATE OF INTEREST.
+
+Among barbarous nations, the loaning of capital is wont to happen so
+seldom, and to be limited so strictly to near relations, that it does
+not yet occur to any one to stipulate for a regular compensation
+therefor.[184-1] But, however, when they pass from this state to
+interest proper, the rate must be, of course, very high.[184-2] The
+premium for insurance is here very great, the possibility and
+inclination to accumulate capital exceedingly small. Even of the
+existing supply of capital, a great part remains idle, because the
+faculty and the institutions necessary to concentrate it and permit it
+to flow are wanting. (Sec. 43.) The unskillfulness of labor is more than
+overcome by the excess of fertile and naturally productive land, of rich
+sites still unoccupied, the cream of which, as it were, needs only to be
+culled. Population is indeed sparse, but the usually prevailing absence
+of freedom of the lower classes prevents wages claiming the full benefit
+of competition.[184-3] This last circumstance is especially
+important.[184-4] For a given amount of the national income and of rent,
+every depression of wages must obviously raise the rate of interest, and
+every enhancement of wages lower it.[184-5]
+
+     [Footnote 184-1: _Tacit._, Germ., 26; _Marculf_, Form., 18,
+     25 ff., 35; _Savigny_, Ueber das altroemische Schuldrecht, in
+     the transactions of the Berlin Academy, 1833, 78 seq.]
+
+     [Footnote 184-2: According to the Lex Visig., V, 5, Sec. 8, the
+     maximum rate of interest allowed on loans of money was
+     12-1/2 per cent., and on other _res fungibiles_, 50 per
+     cent. From the 12th to the 14th century, the Lombards and
+     the Jews in France and England took generally (?) 20 per
+     cent. a year. (_Anderson_, Origin of Commerce, _a._, 1300.)
+     Philip V. of France, in 1311, fixed the rate of interest at
+     the fairs in Champagne at 15 per cent. (a species of
+     discount) at most, and at a maximum everywhere of 20 per
+     cent. (Ordonnances de la France, I, 484, 494, 508.) The
+     legal rate of interest in Verona, in 1288, was fixed at a
+     maximum of 12-1/2 per cent.; in Modena, 1270, at 20 per
+     cent. (_Muratori_, Antiquitt. Ital., I, 894); in Bresica,
+     1268, at 10 per cent. (_v. Raumer_, Geschichte der
+     Hohenstaufen, V, 395 ff.) Frederick II. wished to reduce it
+     to 10 per cent. for Naples, but failed. (_Bianchini_, Storia
+     delle Finanze di Nap., I, 299.) The tables of _Cibrario_,
+     Economia polit. del medio Evo., III, 380, for 1306-1399,
+     show for upper Italy interest to have been at 20, 15, 14,
+     10, and also 5-1/2 per cent. About 1430 the Florentines, in
+     order to moderate the enormously high rate of interest,
+     called Jews to their city, and the latter promised not to
+     charge over 20 per cent. (_Cibrario_, III, 318.) In the
+     Rhine country, the Kowerzens, during the 14th century, took
+     from 60 to 70 per cent., for which they had, however, to pay
+     a heavy tax to the archbishop. (_Bodmann_, Rh. Alterthuemer,
+     716.) Of Jewish maximum rates of interest, in the 14th and
+     15th centuries, see _Stobbe_, Juden in Deutschland waehrend
+     des M. Alters, 103, 110, 234 seq.; _Hegel_, Strassb. Chr.,
+     II, 977, 984.
+
+     The rate of interest usual in these countries must not
+     however be calculated from the data furnished by these
+     usurious rates and fixed rates of interest, simply. In
+     Germany, the rate of interest promised by princes in the
+     13th and 14th centuries was usually 10 per cent. The
+     Frankfort municipal loans made by Jews in the 14th century
+     bore interest at the rate of 9, 11-2/3, 13, 18, 26, and even
+     45 per cent. (_Kriegk_, F.'s Buergerzwiste, 343, 539.) The
+     rate of interest in the purchase of annuities continually
+     declined between 1300 and 1500, especially in the time of
+     the emancipation of manual laborers. Old Base documents
+     give, between 1284 and 1580, as the highest rate, 11-3/9,
+     and as the least, 5 per cent. The latter became more and
+     more usual later, especially in the sale of house-rents
+     (_Hauszins_), so that in 1841 all annuities (_Renten_) might
+     be canceled by a payment of their amounts multiplied by 20.
+     Until the beginning of the 15th century, in the city, the
+     rule was 6 to 7 per cent.; outside of it, 8 to 10 per cent.
+     (_Arnold_, Geschichte des Eigenthums in den deutschen
+     Staedten, 222 seq., 227 seq.) According to the Bremen Jahrb.
+     of 1784, 164 seq., the rate of interest in the case of
+     _Handfesten,_ in 1295, = 10 per cent., gradually sank: in
+     the 15th century it was never over 6-2/3; after 1450,
+     generally 5; in 1511 only 4 per cent. In 1441 ff., in
+     Augsburg, people were satisfied with a business profit of
+     7-2/3 per cent., while the usual rate of interest paid by
+     house-rent, etc. was 5 per cent. (_Hegel_, Augsb. Chr., II,
+     134 seq., 157.) Handsome tables in the rate of interest in
+     the purchase of annuities for all Germany, from 1215 to
+     1620, give as the rule, 7 to 10, scarcely ever over 15 per
+     cent., in _M. Neumann_, Geschichte des Wuchers, 266 ff. For
+     the upper Rhine, compare _Mone's_ Zeitschr., 26 ff. Among
+     the Fathers of the councils of Constance and Basil 5 per
+     cent. was considered equitable. Compare _F. Hammerlin_,
+     1389-1457, De Emtione et Venditione unius pro viginti.
+     Russian interest at 40 per cent., according to the laws of
+     Jaroslaw (ob. 1054 after Christ). _Karamsin_, Russ. Gesch.,
+     II, 47.]
+
+     [Footnote 184-3: The high rate of interest in many countries
+     at present may be thus accounted for. In the United States,
+     during the last century, less than 8 per cent. was seldom
+     paid. (_Ebeling_, III, 152.) According to _M. Chevalier_,
+     Lettres sur l'Amerique du Nord, 1836, I, 59, the rate of
+     interest in Pennsylvania was 6, in New York, 7, in most of
+     the slave states, 8-9; in Louisiana, 10 per cent. In South
+     Australia (1850) it was, with full security, 15-20 per cent.
+     (_Reimer_, Suedaustralien, 39.) In the West Indies, about the
+     end of the last century, a strong negro might produce a
+     revenue equal to one-fourth of his capital value. (_B.
+     Edwards_, History of the British West Indies, II, 129.) In
+     Brazil, the lowest rate of interest was at 9 per cent., and
+     12-18 per cent. was nothing unusual. (_Wappaeus_, M. and S.
+     Amerika, 1871, 1413.) In Cuba, for the government 10, for
+     private parties, 12 to 16 per cent. (_Humboldt_, Cuba, I,
+     231.) In Potosi, in 1826, Temple got 30 per cent. interest
+     on chattel mortgage, and from 2 to 4 per cent. a month was
+     offered, while the rate of interest in Buenos Ayres amounted
+     to 15 per cent. per annum. (_Temple_, Travels, II, 217.) In
+     Russia, _Storch_, Handbuch, I, 262, speaks of 8-10 per cent.
+     According to _v. Haxthausen_, it was, in the interior, never
+     less than from 8 to 12 per cent. per annum; at Kiew and
+     Odessa, 1-1/4, 1-1/2 and 2 per cent. per month. (Studien, I,
+     58, 467; II, 495.) In _Greece_, the rate of interest on
+     first mortgages is at least 10, on a second, 15-18 per cent.
+     (Ausland, 1843, No. 82.)]
+
+     [Footnote 184-4: _Nebenius_, Oeff. Credit, I, 55.]
+
+     [Footnote 184-5: Only in this particular instance is what
+     _Ricardo_ so frequently insists on true, viz: that the rate
+     of wages can be increased only at the expense of the profit
+     of capital, and _vice versa_.]
+
+
+SECTION CLXXXV.
+
+HISTORY OF THE RATE OF INTEREST.--INFLUENCE OF AN ADVANCE IN
+CIVILIZATION.
+
+With an advance in civilization, the rate of interest is wont to
+decline.[185-1] [185-2] One of the chief causes of this phenomenon is the
+necessity, as population and consumption increase, to employ capital in
+the fertilization of less productive land, and in less profitable
+investments.[185-3] An increase in the stock of money does not
+necessarily depreciate the rate of interest. If this increase comes in
+connection with a corresponding depreciation of the individual pieces of
+metal, it cannot be said that the nation has thereby become richer in
+capital. All that would be required in such case is only a greater
+number of pounds of gold or silver, or more paper bills to represent the
+same capital.[185-4] Only during the transition-period, during which the
+depreciation of money is still incomplete, is the rate of interest wont
+to be lowered; and all the more, since loaned capital is generally
+offered and sought after in the form of money.[185-5] [185-6]
+
+The decline of the rate of interest generally shows itself earliest in
+the large cities, which are everywhere the national organ, in which the
+good and bad symptoms of later civilization may be soonest
+observed.[185-7]
+
+Moreover, the condition of capitalists is not necessarily made worse by
+a decline of the rate of interest. It is possible that, for a long time,
+the increase of capital should continue more rapid than the decrease of
+interest for each individual. (If, indeed, the aggregate interest of
+capital should become absolutely smaller, there is always a pleasant
+remedy available, viz.: to consume a part of the capital!) But, however,
+a decline of the rate of interest is nearly always followed by increased
+activity on the part of capitalists; and they come to the resolve to
+retire later to enjoy the results of their previous labors. In Holland,
+after the time of Louis XIV., no branch of business was wont to pay more
+than from two to three per cent. In the case of the purchase of land, no
+one calculated on more than two per cent. Hence it was scarcely possible
+for small capitalists there to live on their interest; and the good
+sense of the people so well adapted itself to this state of things that
+to live in leisure on one's rents was considered a not entirely
+honorable mode of existence.[185-8] The lower the rate of interest, the
+larger, in highly civilized countries, is the stock on hand of cash apt
+to become, for the reason that business men then hope to gain more by
+the advantages of cash payments than by the saving of interest.[185-9]
+[185-10]
+
+     [Footnote 185-1: _Proudhon's_ idea, that this decline might
+     at last bring about a total abolition of interest, is based
+     on the same error as this other: that since a man may keep
+     diminishing his per diem quantum of food, he might finally
+     dispense with food altogether. _Proudhon's_ Banque du
+     Peuple--People's Bank--which, by gradually diminishing the
+     interest on its loans to the minimum cost of its
+     administration, should compel other capitalists to follow
+     its example.]
+
+     [Footnote 185-2: Thus, in England, by virtue of 37 Henry
+     III., c. 9, the legal interest was = 10 per cent.; by 21
+     James I, c. 17 = 8; about 1651 = 6 per cent. (confirmed in
+     1660); by 12 Anne, ch. 16 = 5 per cent. In the time of
+     George II., where the security was good, only 3 per cent.
+     was, as a rule, paid. In France, the legal rate of interest,
+     at the beginning of the 16th century, was 1/10 of the
+     capital; after 1657, 1/12; 1601 (_Sully_), 1/16; 1634
+     (_Richelieu_), 1/18; 1665 (_Colbert_), 1/20. Compare
+     _Forbonnais_ Recherches et Considerations, I, 48, 225, 385
+     ff. It continued at this rate of 5 per cent. with short
+     interruptions until the revolution. (_Warnkoenig_, Franz.
+     Staats. und Rechtsgeschichte, II, 588 seq.)
+
+     The rates of interest in Russia, in the 16th century, had
+     already declined to 20 per cent. (_Herberstein_, Reise, 41
+     ff.; _Karamsin_, Russ. Geschichte, VII, 169.) In Holland, in
+     1623, it was estimated that land purchases paid 3 per cent.;
+     hypothecations, 4 to 6; deposits, 5 to 6; a flourishing
+     business, 10 per cent. Compare _Usselinx_ in _Laspeyres_,
+     Geschichte der volkswirthschaftl. Anschauungen der
+     Niederlaender, 76. About 1660, the rate of interest usual in
+     Italy and Holland was at most 3 per cent. (in war times, 4);
+     in France, 7; in Scotland, 10; in Ireland, 12; in Spain, 10
+     to 12; in Turkey, 20 per cent. (_Sir J. Child_, Discourse on
+     Trade, French translation, 75 ff.) Side by side with 6 per
+     cent. as the rate of interest in England, it was (a little
+     later) 10 in Ireland. _Petty_, Political Anatomy of Ireland,
+     74.
+
+     The same course of things is to be observed in ancient
+     times. In _Solon's_ time, and again in that of _Lysias_, it
+     was 18 per cent. (_Boeckh_, Staatshaushalt der Athener, I,
+     143 ff.) I am of opinion that the rate of interest declined
+     during this long interval, but rose again in consequence of
+     the Peloponnesian war. Among friends, in the time of
+     _Demosthenes_, 10 per cent. (adv. Onetor., I, 386.)
+     _Aristotle_, Rhet., III, 10, mentions 12 per cent., which
+     _Aeschines_, adv. Ctes., 104, and _Demosthenes_, adv. Aph.,
+     I, 820, 824, call low. The rate of commercial interest in
+     Egypt (146 before Christ) seems to have been 12 per cent.
+     per annum. (_Letronne_, Recompense promise a celui, etc.,
+     1833, 7.) Contemporaneously in Rome, a similar rate of
+     interest must have been considered usurious. (_Cicero_, ad.
+     Att., I, 12.) Under the emperor _Claudius_, 6 per cent.
+     (_Columella_, De Re rust., III, 3.) _Justinian_ allowed _to
+     personae illustres_ 4 per cent. per annum. (L. 26 Cod., IV,
+     32.)]
+
+     [Footnote 185-3: A Huron with his bow and arrow kills 12
+     pieces of game; the European, with a much better capital,
+     his rifle, only 5. Compare _v. Schoezer_, Anfangsgruende, I,
+     28. _Mallthus_, Principles, ch. 5. According to _Ricardo_,
+     ch. 6, the decline of the rate of interest because of the
+     necessity of carrying on agriculture under harder
+     conditions, must make all capital of which raw material
+     forms a part more valuable; while the possessors of
+     money-capital particularly find no indemnification.
+     _Wakefield_, England and America, 1853, accounts for it by
+     saying that production, besides the cooperation of capital
+     and labor, needs "a field of employment;" and _Bastiat_,
+     Harmonies, ch. 5, 13, by saying that with the advance of
+     civilization, the results of former services lose in value
+     as compared with later ones, because performed under less
+     favorable circumstances.]
+
+     [Footnote 185-4: _D. Hume_, Discourses No. 4 On Interest.
+     Per contra, see _Locke_, Considerations of the Consequences
+     of the Lowering of Interest; _Law_, sur l'Usage des Monaies,
+     1697 (Daire); and _Montesquieu_, Esprit des Lois XXII, 6.
+     _Cantillon_ draws a very nice distinction: If the increased
+     amount _of_ money in a state comes into the hands of
+     loaners, it will decrease the current rate by increasing the
+     number of loaners; but if it comes into the hands of
+     consumers, the rate rises, because now the demand _for_
+     commodities is so much greater. (Nature du Commerce, 284.)]
+
+     [Footnote 185-5: The reviews in the Goettingen G. Anz., 1777,
+     and of _von Iselin_, in the Ephemeriden der Menschheit, II,
+     170 ff., 177, question _Adam Smith's_ (Wealth of Nat., II,
+     ch. 4) entirely too positive denial of the influence of the
+     American production of gold and silver on the diminution of
+     the rate of interest, a view which was shared also by
+     _Turgot_, Form. et Distr., Sec. 78. See a beautiful comparison
+     between a declining of the prices of the currency which,
+     promotes production, with the phenomena attending the growth
+     of a tree, in _Schaeffle_, N. Oek., II, Aufl., 249.]
+
+     [Footnote 185-6: Thus the rate of interest in Rome fell from
+     12 to 4 per cent. when Octavian suddenly threw the treasures
+     of conquered Egypt upon the market, and the price of
+     commodities only doubled. When later commerce had divided
+     this amount of money among the provinces, it rose again.
+     (_Sueton._, Oct., 41; _Dio C._, LI, 17, 21; Oros, IV, 19.)
+     _Law's_ emissions of paper, in colossal amounts, depressed
+     the rate of interest to 1-1/4 per cent. (_Dutot_,
+     Reflexions, 990--Daire.) But as soon as the paper money had
+     lost its value, the former condition returned. Similar
+     observations in Rio de Janeiro: _Spix_ und _Martius_, Reise,
+     I, 131.]
+
+     [Footnote 185-7: While in Paris the capital safely invested
+     paid 2-1/2 to 3 per cent., 57 out of 61 _conseils generaux_
+     declared, in 1845, that the rate of interest on
+     hypothecations, in their departments, was always over 5 per
+     cent.; 17 estimated it at an average of from 6 to 7 per
+     cent.; 12 at from 7 to 10; some said 12 and 15, and even 22
+     per cent. in the case of small sums loaned for a short time.
+     (_Chegarny_, Rapport au Nom de la Commission de la Reforme
+     hypoth., 29 Avril, 1851.) In Russia, at the beginning of
+     this century, the rate of interest in the Baltic provinces
+     was 6 per cent.; in Moscow, 10; in Taurien, 25; in Astracan,
+     30 per cent. (_v. Schloezer_, Anfangsgruende I, 102.) In 1750,
+     in Naples, the rate of interest was from 3 to 5 per cent.,
+     in the provinces from 7 to 9 per cent. (_Guliani_, della
+     Moneta, IV, 1.) In Trajan's time in Rome, 6; in Bithynia, 12
+     per cent. (_Plin._, Epist. VII, 18; X, 62.)]
+
+     [Footnote 185-8: _Delacourt_ Aanwysing, 1669, I, 7.
+     _Temple_, Observations on the U. Provinces, ch. 6, Works L.
+     1854. Even _Descartes_ says of Holland's _ubi nemo non
+     exercet mercaturam_. Compare per contra, _H. Grotius_, Jus
+     Belli et Pacis, II, 12, 22. Very large capitalists, in
+     _Smith's_ time, certainly lived generally on the interest of
+     their money: Richesse de Hollande, II, 172. In England, at
+     the present day, likewise, a vast number of persons who live
+     on the interest of their money, occasionally take part in
+     the speculation in commodities; which explains why so-called
+     commercial crises are incomparably more extensive there, and
+     reach incomparably deeper, than in Germany. Similarly,
+     according to _Conring_, De Commercii, 1666, c. 36, in Venice
+     and Genoa.]
+
+     [Footnote 185-9: Hence the larger cash balances in England
+     at the present day, which, however, are not kept in the form
+     of coin, but of bank notes and bankers' deposits.]
+
+     [Footnote 185-10: As to how every frugal capitalist works to
+     the injury of capitalists as a class, but to his own
+     advantage, by lowering the rate of interest and increasing
+     the rate of wages, see _Senior_, Outlines, 188 ff.]
+
+
+SECTION CLXXXVI.
+
+HISTORY OF THE RATE OF INTEREST.--CAUSES OF A HIGH RATE IN THRIVING
+COMMERCIAL NATIONS.
+
+There are, however, even where a people's economy is in a flourishing
+condition, many obstacles which cause the decline of the rate of
+interest to take a retrogressive course, or which at least may delay it
+for a time.
+
+To this category belong all the modifications of a nation's economy
+alluded to in Sec. 183.[186-1] Among them, therefore, is every extension of
+the limits of productive land. Let us suppose a nation which, its
+capital and labor remaining the same in every respect, should suddenly
+double its territory. The less productive places where investments were
+made in the old province are now abandoned, and labor and capital
+emigrate to the new. The result is, of course, an increase of the
+aggregate national income, and, at the same time, a decrease of rent. (Sec.
+157.) Hence, the interest on capital and the wages of labor, taken
+together, must greatly increase. Which of these two branches shall
+profit most and longest by the increase will depend upon whether capital
+or the number of workmen increases most rapidly.[186-2] A similar effect
+must be produced when, by changes or modifications in the commercial
+situation, in the tariff, etc., a nation is enabled to obtain the means
+of subsistence at cheaper rates from more fertile and less settled
+countries.[186-3]
+
+The introduction of better methods of production has very different
+immediate consequences, according as these methods affect the
+commodities which minister to the wants peculiar to workmen as a class,
+or do not. Let us suppose, as a first case, that the cost of ordinary
+clothing is reduced one half by reason of newly discovered material,
+better machines, etc. As in the case of the whole people, so also in
+that of the owners of capital as consumers, there is, in consequence, an
+addition to their enjoyment of life. Their interest as well as their
+capital, compared with clothing material, would have become more
+valuable. But the relation between capital and interest, that is, the
+rate of interest, could not be directly changed. (Compare _infra_, note
+3.) Only when the working class employ their materially increased wages
+to increase population; when in consequence hereof, their wages,
+estimated in money, again decline beyond what it was before; when,
+therefore, the price of a given quantity of labor declines, does the
+rate of interest rise, although a portion of that which the workmen have
+lost may be added to rent on account of the increased population?[186-4]
+[186-5] If the applicability of the new method of production is confined to
+articles of luxury used by the upper classes, for instance to fine lace,
+the rate of interest usual in the country will be affected thereby only to
+the extent that through the medium of commerce such products are exchanged
+with foreign nations against commodities consumed by the working classes.
+But there are very few improvements in production which have not led to a
+greater cheapness of those things which satisfy the wants of the working
+class; and this is especially clear in the improvements in the means of
+transportation so usual in our day.
+
+However, the increase of fixed capital, such as machines, railroads,
+etc., once they are completed, may, at first, cause a depression of the
+rate of wages, as well as an enhancement of the rate of interest; the
+former from the fact that a number of workmen is thereby, at least
+temporarily, thrown out of employment; the latter because the conversion
+of so much circulating into fixed capital must diminish the supply of
+the former.[186-6]
+
+A second class of obstacles consists in the diminution of the supply of
+capital. War, for instance, always causes such a destruction of capital,
+and at the same time for the most part renders the reproduction of
+capital more difficult to such a degree that the rate of interest is
+wont to rise greatly.[186-7] Something similar is true of other great
+catastrophes and of extravagance on a large scale.[186-8] Every state
+loan, whether intended for direct consumption or to procure capital for
+use (_Nutzkapitalien)_, decreases the supply of circulating capital
+which most directly determines the market rate of interest.[186-9] [186-10]
+
+     [Footnote 186-1: _Wolkoff_ very well shows that the economic
+     progress of mankind is effected partly by the improvement of
+     production, and partly by saving. The former increases the
+     rate of interest, the latter lowers it. (Lectures, 182, 189.
+     Compare _supra_, Sec. 45.)]
+
+     [Footnote 186-2: Thus the rate of interest in Russia rose,
+     after Catherine II. had conquered the provinces situated on
+     the Black Sea. (_Storch_, Handbuch, II, 34.) The same is
+     still more strikingly apparent in the judicious planting of
+     agricultural colonies.]
+
+     [Footnote 186-3: Abolition of the English corn laws! Foreign
+     commerce when very advantageous, always adds to the
+     well-being of the people; to the rate of interest, however,
+     only to the extent that articles which are calculated to
+     satisfy the wants of the working class become cheaper in
+     consequence; and this in turn lowers the rate of wages. Let
+     us suppose that a country had hitherto purchased yearly
+     10,000 barrels of wine for $1,000,000. It might now happen
+     that, in consequence of an advantageous commercial treaty,
+     for instance, the 10,000 barrels might be obtained for
+     $500,000. If, after this, wine-drinkers want to spend
+     $1,000,000 for wine as they did before, they of course
+     double their consumption of wine, but the rate of interest
+     remains unchanged. If, on the other hand, they leave their
+     consumption of wine where it was before and apply the saved
+     half million to effect an increased demand for home
+     products, the capital required for this production is set
+     free at the same time. Hence, the relation between the
+     supply and demand for capital has not changed, abstraction
+     made of certain difficulties in the transaction. Compare
+     _Ricardo_, Principles, ch. 7, rectifying _Adam Smith_,
+     Wealth of Nat., I, ch. 9.]
+
+     [Footnote 186-4: An increase in the rate of interest caused
+     by a diminution in the rate of wages does not last long.
+     Capital now increases more rapidly, and the increase is
+     accompanied by an increased demand for labor. If, in the
+     mean time, workmen have become accustomed to a lower
+     standard of life, the increasing wages are followed by an
+     increase of population: then the necessity of having
+     recourse to the cultivation of land of a worse quality is an
+     additional cause of a decreasing rate of interest. (Edinb.
+     Rev., March, 1824, 26.)]
+
+     [Footnote 186-5: According to this, it is easy to tell what
+     influence the increasing skill or activity of the working
+     class (for instance by a decrease in the number of holidays,
+     cooperation of wife and child) must have. Where there has
+     been no accompanying and corresponding elevation of the
+     standard of life, and of the want of the class, the gain
+     soon falls to the lot of the capitalists or landowners.]
+
+     [Footnote 186-6: See the very clear but not entirely
+     complete discussion in _John Stuart Mill_, Principles, IV,
+     ch. 3 ff. When new railways, machines, etc., before they are
+     complete, simultaneously increase the rate of interest and
+     the rate of wages, and even sometimes rent, although they do
+     not immediately increase the national income in any way, the
+     phenomena are to be explained, not by a distribution of
+     income, but as the result of an advance of capital made.]
+
+     [Footnote 186-7: Compare _supra_, Sec. 184. The rise of the
+     rate of interest in Basil, between 1370 and 1393, _Arnold_
+     (loc. cit.) accounts for by the wars and defeats of the
+     upper German cities. Similarly in Zuerich, 1457. (_Joh.
+     Mueller_, Schweizer Geschichte, IV, 211.) During the time
+     immediately following the Spanish war of succession, the
+     _usuriers les flus moderes_ in France got 12-15 per cent. a
+     year. (_Dutot_, Reflexions, 1866.) In Russia the rate of
+     interest, after the war of 1805-15, rose by 4-5 per cent.
+     (_Storch_, Handbuch, 35 seq.) Per contra, _Nebenius_, Oeff.
+     Credit., 70 seq.]
+
+     [Footnote 186-8: Thus the Hamburg conflagration, combined
+     with the bad harvests of 1841, raised the rate of interest
+     in Mecklenburg for a long series of years. Similarly in
+     Wuertemburg, the many bad harvests from 1845 to 1853, which
+     are said to have caused a deficiency of 50,000,000 florins.
+     (Tuebinger Zeitschr., 1856, 568.)]
+
+     [Footnote 186-9: In bad times, state loans are usually
+     effected at a disproportionally high rate of interest. This
+     also operates momentarily on the general rate of interest,
+     to the injury of persons engaged in business enterprises;
+     who, by the very fact of the withdrawal of so much capital,
+     become involved in an unfavorable competition. In the long
+     run, indeed, the high or low rates of interest paid by
+     national debts, in so far as the creditor cannot demand
+     reimbursement, has no influence on the rate of interest
+     usual in the country. Such debts as cannot be declared due
+     assume the character of stationary capital, the value in
+     exchange of which is determined by their yearly return,
+     capitalized at the rate of interest usual in the country.
+     (_Hermann_, Staatswirthschaftliche Untersuch., 223.)]
+
+     [Footnote 186-10: The cooperation of most of the causes
+     above mentioned raised the English rate of interest which
+     had sunk to 3 per cent. to an average of 5, from about 1760
+     to 1816. Thus _Gauss_, in a manuscript work which I have
+     used, relates that the fund for the support of professors'
+     widows in Goettingen was, in 1794, expected to pay only 3 per
+     cent. In 1799, the trustees observed that their capital
+     could often be safely invested at 4 per cent.; somewhat
+     later the rate of interest rose to 5 per cent., at which
+     point it remained for years. About 1843 ff. the rate of
+     interest in old Bavaria was only 4 per cent.; in more highly
+     cultured Rhenish Bavaria, 5 per cent.]
+
+
+SECTION CLXXXVII.
+
+HISTORY OF THE RATE OF INTEREST.--EMIGRATION OF CAPITAL.
+
+Midway between these classes of obstacles lies the very usual proceeding
+of highly civilized nations whose rate of interest is low, to transfer
+their capital into countries with a higher rate of interest, where the
+production of raw material is predominant.[187-1] This is most
+thoroughly accomplished by the emigration for good of the capitalists
+themselves; but also least frequently, because the natural attachment of
+man to his native country is usually too powerful, among the well-to-do
+classes, to be overcome by the attraction of a higher rate of interest.
+Temporary settlements in foreign countries are by far more frequent.
+Either the capitalist removes there himself, for a time, to return
+enriched, at farthest, in his old age; or he establishes a permanent
+branch of his business there, and superintends it through the agency of
+a trusted representative. The inhabitants of northern Italy, during the
+last centuries of the middle ages, maintained such establishments, not
+only for the purpose of carrying on commerce in merchandise along the
+shores of the Levant, but also the money trade in the principal
+countries of the west.[187-2] Similarly, the Hanseatic cities
+contemporaneously in the north and northeast of Europe; and, to-day, the
+English in almost all the important seaport cities in the world.[187-3]
+Such enterprises are always somewhat dangerous, especially in countries
+but little advanced in civilization.[187-4]
+
+The best means to facilitate the migration of capital is credit. It is,
+indeed, true, that in international trade, ordinary private loans are
+seldom made. To make such loans would be to run too many risks; risks
+through a want of knowledge of persons or circumstances, on account of
+the difficulties in the way of continued supervision, and of being able
+to assert and defend one's rights away from home.[187-5] Loans are much
+more readily made to foreign states, to great corporations, or
+joint-stock companies, whose condition is well-known; and which, by
+reason of their perpetuity, have a deep and obvious interest in
+maintaining an honorable reputation. The issuing of certificates of
+stock, etc., has greatly facilitated international trade in
+capital.[187-6] But the mode of loaning in foreign parts preferred is to
+sell them commodities, and to require payment for them only after some
+time has elapsed, of course, with interest. Purchases, on the contrary,
+are paid for immediately, possibly even in advance.[187-7] The lower the
+rate of interest in a country is, the longer and more cheaply can it
+give credit to others; a new reason why the less civilized countries are
+particularly fond of trading with the most civilized.[187-8] [187-9]
+
+     [Footnote 187-1: _Nebenius_, Der oeffentliche Credit, 83 ff.
+     After the end of the Napoleonic war, English capital flowed,
+     by way of preference, towards South America, afterwards
+     towards Spain and Portugal; after 1830, to North America;
+     after 1840, towards Germany and France, to be invested in
+     the construction of railways in the latter countries.]
+
+     [Footnote 187-2: The inhabitants of Asti began in 1226 to
+     carry on the trade in money in trans-Alpine counties. In
+     1256, _Louis IX_. ordered 150 Asti money-changers to be
+     thrown into prison, and he confiscated the money they had
+     loaned in France, to the amount of over 800,000 livres. They
+     were afterwards turned over to their enemy, the Count of
+     Savoy, as usurers. (_Muratori_, Scr. Rerum Ital., XI, 142
+     seq.) About 1268, Louis IX. banished all money-changers of
+     Lombard or Cahors origin: they were allowed only three
+     months in which to collect their debts. (_Sismondi_,
+     Histoire des Fr., VIII, 112.) About 1277, again all Italian
+     money dealers were imprisoned, and 120,000 gold guldens
+     extorted from them. (_Giov. Villani_, VII, 52.) After the
+     Lombards had lost their freedom, the business passed into
+     the hands of the Florentines and of the inhabitants of
+     Lucca. (_Sismondi_, Gesch. der ital. Republiken, IV, 602;
+     _Dante_, Inferno, XXI, 38.) Great part played by the
+     brothers Franzesi as dealers in articles of luxury, and
+     loaners on pledge etc., at the court of Philip IV. They seem
+     to have instigated the persecution of other Italian money
+     dealers, in 1291, from jealousy. (_Sismondi_, Histoire des
+     Fr., VIII, 429 seq.) Great losses of the Florentines by the
+     English-French war in 1337: Edward III. remained in the debt
+     of his bankers Peruzzi and Bardi to the amounts respectively
+     of 135,000 and 184,000 marks sterling; so that they and many
+     others failed. France imprisoned all the Italian money
+     dealers, and compelled them to pay a large amount of
+     ransom-money. (_G. Villani_, XI, 71.) In 1376, the Pope who
+     was engaged in a struggle with Florence, called upon all
+     princes to despoil all Florentine merchants within their
+     jurisdiction of their wealth, and to sell them as slaves;
+     and France and England actually did so. (_Sismondi_,
+     Geschichte der ital. Republiken, V, 257 seq., VII, 74.)]
+
+     [Footnote 187-3: Shortly before the French Revolution, Cadiz
+     had over 50 wholesale merchants against 30 retail, 30
+     modistes and at least 100 tradesmen from France.
+     (_Bourgoing_, Tableau, III, 130.) Commercial colonies!]
+
+     [Footnote 187-4: Thus even the emperor Paul of Russia caused
+     the property of English factors to be confiscated. The
+     galleons which Holland and England captured in the Spanish
+     war of succession belonged mostly to Amsterdam houses.
+     (_Ranke_, Franz. Gesch., IV, 226.) Even _Galiani_, Della
+     Moneta, IV, 3, thinks that, on this account, such commerce
+     is incompatible with the warlike spirit. It is certain,
+     however, that a government like the English would do well
+     not to permit a war with such countries as Russia or the
+     United States to break out too suddenly, that their subjects
+     might have time to collect all their outstanding dues. When,
+     in 1855, it was reported in London that all Russian drafts
+     were dishonored, people looked upon that fact as the surest
+     sign of coming war. English merchants had called in their
+     advances to Russia during the preceding economic period, and
+     refused to make new ones.]
+
+     [Footnote 187-5: This of course disappears when the
+     borrowing country is dependent on the loaning country. Thus,
+     the Canton of Uri formerly prohibited the inhabitants of the
+     Livinerthal to borrow capital except from them. It is said
+     that, at the beginning of this century, the Uri capital then
+     loaned amounted to one-half a million florins, that is, an
+     average of 250 per householder. Now it is not over one-fifth
+     of that amount. (_Franscini_, Canton Tessin, 126.) Think
+     also of the plantation colonies! But even the East Indies
+     may be looked upon as a species of colony for England. Hence
+     _Fawcett_, Manual, 105, is rightly of the opinion that no
+     other country has the possibility of being as useful to the
+     East Indies as England. And in fact, the East Indian
+     railways obtained of their capital of L82,500,000, only a
+     very small part, L800,000, in India itself, a very small
+     proportion of which latter sum was subscribed by the native
+     population. (Ausland 24, Juli, 1869.)]
+
+     [Footnote 187-6: What England is to-day, the Italian
+     commercial cities were in the 16th and 17th centuries, viz.:
+     the chief market for foreign loans. (Compare _Mun,_
+     England's Treasure, 1664, ch. 4.) The Genovese loaned money
+     in foreign countries at 2 and 3 per cent. (_Montanari_,
+     Della Moneta, 1867, cap. 2.) It is said that the Dutch, in
+     1778 invested 1,500 millions of livres in foreign national
+     debts, especially those of France and England. (Richesse de
+     Hollande, II, 178.) According to _J. G. Forster_, Schriften,
+     III, 335, in 1781 alone, in Europe, 800 millions loaned
+     capital. The Niederl. Jaerboek of 1789, p. 729, estimates
+     the amount of interest coming from abroad, English and
+     French not included, at from 50 to 60 millions of florins.
+     About 1844, according to official estimates, 1,000 million
+     florins in foreign loans, that is one-third of whole
+     national income. (Allgemeine Zeitung, 1844, No. 35.) Now,
+     Belgium, 300 million florins, in Austrian evidences of
+     indebtedness. (Quarterly Review, October, 1862, 402.)
+     According to _Baumstark_, Staatswissensch. Versuche ueber
+     Staatscredit, etc., 1833, 77, foreign nations, between 1818
+     and 1825, borrowed in England L49,000,000; and, about the
+     same time, England participated in Russian, French and North
+     American loans to the extent of L55,500,000. It is said that
+     there were, in 1843, L25,000,000 English capital in the
+     canals, railroads and banks of the United States. (_Porter_,
+     Progress of the Nation, III, 4, 634.)]
+
+     [Footnote 187-7: It is evident, from many of Demosthenes'
+     orations on private matters, that Athens was in the habit of
+     advancing the commercial capital needed by a great part of
+     the inhabitants of the Mediterranean coast. Many colonial
+     cities, Phaselis, for instance, had the very worst
+     reputation in this respect. They were virtually pirates as
+     regards Athens. (Adv. Lacrit., 931.) Here also it seems that
+     the goods taken for the loan had to be brought to Athens.
+     (941.) On the regular advances of Prussian merchants to
+     their Lithuanian and Polish vendors, in the 15th century,
+     while the former were forbidden even to buy on credit, see
+     _Hirsch_, Geschichte des Danziger Handels, 167, 177. In
+     Colbert's time, the Dutch gave 12 months credit in Europe.
+     (_J. De Wit_, Memoires, 184.) In England, _Child_ perceives
+     a great advance in this: that in 1650, in all business in
+     the interior, there was a credit of 3 to 18 months given;
+     and in 1669, everything was paid for in cash. (Discourse on
+     Trade, 45.) Concerning previous times, see _W. Raleigh_,
+     Observations touching Trade and Commerce with the Hollander
+     and other nations, 1603. (Works, VIII, 951 ff.) In North
+     America, merchants in the interior frequently purchase their
+     goods of importers on 6 months credit. (_Tellkampf_,
+     Beitraege, I, 52.) In the West Indies, about the end of the
+     last century, the English gave a credit, generally, of from
+     12 to 16 months. (_B. Edwards_, History of the British West
+     Indies, II, 383.) In Brazil, in the case of imports, 4, 8
+     and even 12 months credit; payment in monthly installments,
+     and frequently even longer delay, without interest. In the
+     case of exports, when cash payments are not made, 1 per
+     cent. a month, (_v. Reden_, Garn und Leinenhandel, 332.)
+     Recently only about 40 per cent. of foreign advances are
+     made at 12 to 20 months, 60 per cent. at from 50 to 70 days.
+     (Tuebing. Zeitschr., 1864, 517.)
+
+     In Buenos Ayres, the producer or collector of export
+     articles required the price to be paid usually a long time
+     in advance (_habilitacion_), a very bold but necessary
+     procedure, on account of his poverty. (_Robertson_, Letters
+     on S. America, I, 174 ff.) In the corn trade in South
+     Russia, at least one-half of the purchase money was required
+     to be paid in advance, and even before shipment, the other
+     half as soon as the corn arrived in the harbor, and, hence,
+     sometimes, long before it was put on board. (_W. Jacob_, On
+     the Corn Trade of the Black Sea, 23.) Compare _Tooke_, View
+     of the Russian Empire, I, 339, Richesse de Hollande, II, 43,
+     _Storch_, Handbuch, II, 61 seq. Russia was, about 1770, a
+     credit-giving nation to the still poorer Persians.
+     (_Gmelin_, Reise, III, 413.) The Spaniards also, in their
+     American colonies, had always an expedition ready and
+     waiting, the payment for which was made on the arrival of
+     the second. (_Depons_, Voyage dans la Terre Firme, II, 368.)
+     Moreover, active commerce simply, especially when
+     circuitous, may be considered as in some way an
+     international loan; and thus it is that the favorable
+     "balance," by means of which claim-rights are obtained in
+     foreign countries, is secured.]
+
+     [Footnote 187-8: Notwithstanding the gratitude of the United
+     States towards France, and spite of all the French
+     ambassador could do, the English immediately after the
+     conclusion of peace, attracted the greatest part of American
+     trade to themselves. (_Chaptal_, de l'Industrie Fr., I,
+     103.) Countries with a low rate of interest have an
+     advantage in this respect, which grows after the manner of
+     compound interest, when the duration of the advance of
+     capital is prolonged. (_Senior_, Outlines, 195.)]
+
+     [Footnote 187-9: How capitalists may, by the giving of
+     international credit, fall into an injurious habit, is shown
+     by the late and troublesome building up of the Dutch railway
+     system, while so many foreign railway enterprises were
+     provided with Dutch capital.]
+
+
+SECTION CLXXXVIII.
+
+HISTORY OF THE RATE OF INTEREST.--EFFECT OF A LOW RATE ON STATIONARY
+NATIONS.
+
+Beneficial as the spur of a low rate of interest is for countries
+capable of development, it is a heavy drag on a stationary people, and
+more so on those who have lost a portion of the field for the investment
+of their capital by the competition of too powerful rivals.[188-1] A
+real superabundance of capital is attended with cares and temptations
+for the middle classes very similar to those caused by a so-called
+over-population, especially to dishonesty and extravagance.[188-2] When
+capital, population and the skillfulness of labor remaining the same,
+continues to increase, the enlarged capital may very readily have every
+succeeding year only the same return to divide among its owners, that
+the smaller had in previous years.[188-3] Hence additional saving here
+would produce no real enrichment of the people; and it might even happen
+that the instinct to accumulate capital might in the future become
+torpid to a greater degree than the capital itself had increased. In any
+case, however, the decline of the rate of interest can continue only to
+a certain point. There are numberless persons who would rather consume
+their capital, or invest it in hazardous speculations than put it out at
+interest at one per cent. a year.[188-4] At least, the tendency of a
+decline in the rate of interest is, in the case of the richer, to
+increase the amount of capital consumed as compared with productive
+capital. The more moderate, sober and provident a people are, the lower
+may the rate of interest decline without producing this effect. And so,
+the more the capital of a nation is concentrated in the hands of a few;
+because then the owners of capital are all the later forced to break in
+upon it, for the sake of subsistence.[188-5] [188-6]
+
+Among nations which have totally declined, the rate of interest is wont
+to reach a high point once more; the natural result of great losses of
+capital and men, while, at the same time, the freedom of the lower
+classes and the security of property have been either curtailed or lost.
+The weakness of age is, in many respects, even in the case of nations, a
+second childhood.[188-7]
+
+     [Footnote 188-1: _Temple_, Works I, 102, assures us that the
+     Dutch in his time considered the payment of the principal of
+     a public debt a real misfortune: "they receive it with
+     tears, not knowing how to dispose of it to interest with
+     such safety and ease." On Italy, see _Bandini_ (ob. 1760),
+     Sopra le Maremme Sienese, 154 seq.; earlier _Montanari_,
+     Della Moneta, 57. In the England of the present time, small
+     capitalists especially belong to the so-called "uneasy"
+     classes.]
+
+     [Footnote 188-2: Numberless bankrupts and unbounded
+     extravagance in Holland. (Richesse de Hollande, II, 168.) In
+     England, the hazardous enterprises of 1825 were very much
+     promoted by the action of the government which a short time
+     before reduced the interest on its state debt. (_Tooke_,
+     History of Prices, II, 148 ff.)]
+
+     [Footnote 188-3: _J. S. Mill_, IV, ch. 4, 4. When _Ricardo_,
+     ch. 6, says that every increase of productive capital must
+     enhance the value in use, and still more the value in
+     exchange, of a nation's property, but under such
+     circumstances only to the advantage of the working class,
+     and still more of the land owning class, he at least
+     apparently presupposes an improvement, or increase of
+     labor.]
+
+     [Footnote 188-4: Think only of the so-called commercial
+     crises, the speculation-rage preceding which is excited by
+     the lowness of the rate of interest, the destruction of
+     capital in which makes the rate of interest to retrograde
+     materially. However, this very decline is, in itself, only a
+     spur to speculation in evidences of national indebtedness,
+     stocks, etc., in commodities, only where, without such
+     speculation, a rise in prices was to be expected. Thus, for
+     instance, the great English periods of speculation: 1796
+     ff., in colonial products; 1808 ff., in raw materials in
+     general; 1814, in articles of export, were times in which
+     there was not the slightest facility in obtaining credit.
+     (_Tooke_, History of Prices, III, 159.)]
+
+     [Footnote 188-5: Between 1829 and 1849, the highest rate of
+     interest paid by English capital employed in cotton
+     industries was little over 2-1/2 per cent. (Edinb. Rev.,
+     April, 1849, 429.)]
+
+     [Footnote 188-6: As the symptoms of a condition are very
+     frequently mistaken for its cause, there have been many
+     writers who, blinded especially by the contemplation of
+     Holland, considered the lowness of the rate of interest as
+     the _causa causans_ of all wealth, and who promised really
+     magical results from its legislative regulation by the
+     state. Thus _Sir Thomas Culpeper_, A Tract against the high
+     Rate of Usury, 1623; continuation 1630; _Sir J. Child_,
+     Brief Observations concerning Trade and the Interest of
+     Money, 1668; Discourse of Trade, 1690. _Anderson_ (ob.
+     1765), was of a similar opinion: Origin of Commerce, a.
+     1601, 1651; and even _Ganilh_, Dictionnaire analytique, 99
+     seq. (_Infra_, Sec. 162.) Per _contra_, the anonymous essay,
+     Interest of Money mistaken, 1668, and _Locke_,
+     Considerations of the Consequences of the Lowering of
+     Interest and Raising the Value of Money, 1691. Most moderns
+     have considered the decline of the rate of interest an evil.
+     Thus, for instance, _Canard,_ Principes, ch. 5, who
+     uniformly makes this the starting point of a nation's
+     downfall. See also _McCulloch_, Principles, III, 8.
+     _Malthus_ draws a comparison between the saving of capital
+     and the generation of children: only a high rate of interest
+     makes the former really useful, and a high rate of wages the
+     latter.
+
+     Even great destruction and disturbances of capital by war,
+     by loans to the state, for instance, are soon made good,
+     provided the sources of the saving of capital are not dried
+     up. (Principles, III, 370 ff., 401, ff.) _John Stuart Mill_
+     expressly counsels rich and highly civilized nations not to
+     neglect beneficent enterprises, although economically
+     unproductive, because capital might be lost in them. The
+     result of such a loss would, under certain circumstances,
+     simply be that less capital would be exported or wasted in
+     speculation. (Principles, II, ch. 5, 1.) Similarly _Canard_,
+     who, therefore, compares state loans with blood-letting, as
+     a remedy for a plethoric disease. (Ch. 9.) _Turgot_
+     confounded cause and effect when he compared a high rate of
+     interest to an inundation, below the level of which nothing
+     can be produced; and which, the lower it became, the more
+     dry ground there was for men to work on. (Sur la Formation,
+     etc., Sec. 89.)]
+
+     [Footnote 188-7: Rate of interest in Persia from 40 to 50
+     per cent. a year. (Ausland, 1844, No. 208.) In Tripoli,
+     Christians and Jews alike loan the Arabs at the rate of 5
+     per cent. a month; at least 1-1/2 or 2. (_Rohlfs_, von
+     Tripolis nach Alexandrien, 1871, I, 22.) In most of the East
+     Indian kingdoms, the rate of interest is so high for the
+     government itself that when the creditor, even without a
+     return of the capital, gets the interest only for a few
+     years, he is considered passably well indemnified. (_J. S.
+     Mill_, II, ch. 15, 2.) In China, 12 to 15 per cent.; 36
+     nothing unheard of. (_Barrow_, China, 562.)]
+
+
+SECTION CLXXXIX.
+
+INTEREST-POLICY.--LEGITIMATENESS OF INTEREST.
+
+The legitimateness of interest is based on two unquestionable grounds:
+on the real productiveness of capital, and on the real abstinence from
+enjoyment of it by one's self.[189-1] Let us suppose a nation of
+fishermen with no private ownership in land and no capital, living naked
+in caverns, on sea-fish which the ebb of the ocean has left in the
+puddles along the shore, and which are caught only with the hand.[189-2]
+All workmen here may be equal, and each catch and consume three fish a
+day. Let us again suppose that some clever savage reduces his
+consumption to two fish a day, for one hundred days, and uses the stock
+of one hundred fish collected in this way to enable him to devote all
+his strength and labor, during fifty days, to the construction of a boat
+and a net. With the aid of this capital he, from the first, catches
+thirty per day. What now will his fellow tribesmen, who are not capable
+of such intelligent and systematic self control to do as he has done,
+do? What will they offer him for the use of his capital? In discussing
+this question both parties will very certainly consider not only the
+fifty days' labor spent in the construction of the boat, etc., but also
+the one hundred and fifty days during which its maker had to abstain
+from his full ration of food. If the borrower, of the thirty fish which
+may be caught daily with the aid of his capital, gives twenty-seven
+away, his condition is at least no worse than it was at first. On the
+other hand, the lender, if compensated only for the wear and tear of his
+capital, would reap no profit whatever from his loan. The interest to be
+paid will be fixed somewhere between these two extremes by the relation
+between demand and supply. A loan which pays no interest is a donated
+use of capital. (_Knies._)[189-3] Interest may be called the reward of
+abstinence (_Senior_), in the same way as wages is called the reward of
+industry.[189-4] With the abolition of interest, exchange would be
+limited to the mere present, without any mediation between the past and
+the future. A great number of services would bring no equivalent in
+return, and, therefore, as a rule, never be performed. Most of the
+charges commonly made in our day against the "tyranny of capital" are,
+at bottom, only a complaint that capital is not inexhaustible; and even
+those workmen who are obliged to pay most to capital would be much worse
+off without it.
+
+     [Footnote 189-1: The Greeks very appropriately call interest
+     tokos, i. e., that which is born. In the loaning of capital
+     productively invested, the creditor, in the interest
+     received, consumes the real produce of his property. If the
+     debtor has consumed the property unproductively, the
+     creditor indeed lives on the debtor's other returns or
+     supplies; which, however, without his intervention would
+     probably have been consumed by their owner.]
+
+     [Footnote 189-2: We here, for the time being, make
+     abstraction of all entangling surrounding circumstances.
+     However, _Diodor._, III, 15 ff., and _Strabo_, XVI, 773,
+     describe a very similar condition of things among the
+     Ichthyographs; also _Hildebrand_, Reise, um die Erde, III,
+     2, in China. In the Sudan, whole generations fetch water
+     every day from a distant town, instead of working for a few
+     weeks to dig a deep well nearer home. (_Barth_, Afr. Reise,
+     III, 297.)]
+
+     [Footnote 189-3: The most recent relapse into the old error
+     of the unproductiveness of capital, viz.: that of _Karl
+     Marx_ (Das Kapital; Kritik der polit. Oekonomie, I, 167) is a
+     turning round and round of the author in the vicious circle
+     of his demonstration. If the value of every commodity
+     depends simply on the labor necessary to bring it into
+     existence, or on the time of labor required to produce it,
+     it is self-evident that the value of the capital consumed
+     for the purpose of its production, can at most be only
+     preserved in the new product, and that all the additional
+     value (_Mehrwerth_) of the latter should be ascribed to
+     labor. (172, and passim.) Hence, strictly speaking, the
+     capitalist who advances capital to workmen, is still bound
+     in duty to be grateful to the latter when the value of his
+     advance is preserved to him undiminished, (Sec. 173) and all
+     interest levied by him should be considered as a payment
+     towards the extinguishment of the capital [debt] itself.
+     (556.) Relying on such theories, many socialists admit
+     private property and even the right of inheritance to means
+     of enjoyment and use capital (_Gebrauchskapitalien_)
+     provided only that land and productive capital should pass
+     over into the "collective property" of society, with
+     compensation, however, to their former owners. Considering
+     the short duration of most goods used in enjoyment or
+     consumed, the evil consequences of a community of goods
+     mentioned in Sec. 81, could not be avoided to any extent by
+     this means.
+
+     How entirely fallacious the above assumption is, is seen
+     most strikingly in the case of such goods as cigars, wine,
+     cheese, etc., which, without the least addition of labor, by
+     merely postponing the consumption of them, obtain a much
+     larger value both in exchange and in use. Or, how would it
+     be possible, for instance, to reduce the value of a
+     hundred-year-old tree, over and above the cost of planting
+     it, to labor alone? Similarly, the fact that on a Chilian
+     _hacienda_, 25 per cent. of the cattle can be slaughtered
+     and no diminution of the herd take place. (_Wappaeus_, M. und
+     S. Amerika, 784.) _Strassburger_ rightly inquires: if all
+     the profit of capital is based on a cheating of workmen by
+     capitalists, who is cheated in the case in which a
+     manufacturer without workmen earns more with an increased
+     capital than before with a small capital? (_Hildebrand's_
+     Jahrb., I, 103.)]
+
+     [Footnote 189-4: In a time full of nabobism and pauperism,
+     when some can, without the least abstinence, make immense
+     savings, and others none at all even with the greatest
+     abstinence, we may comprehend where the socialists find food
+     for their derision of the expression, "reward of
+     abstinence."]
+
+
+SECTION CXC.
+
+INTEREST-POLICY.--AVERSION TO INTEREST.
+
+At the same time, there is a strong aversion to the taking of interest
+prevalent among nations in a low stage of civilization. Industrial
+enterprises of any importance do not as yet exist here at all, and
+agriculture is most advantageously carried on by means of a great many
+parcels of land, but with little capital. The purchase of land is so
+rare, and hampered by legal restrictions to such a degree, that loans
+for that purpose are almost unheard of. And just as seldom does it
+happen, by reason of the superabundance of land, that the heir of a
+landowner borrows capital to effect an adjustment with his co-heirs, and
+thus enter alone into the possession of the estate. Here, as a rule,
+only absolute want leads to loaning.[190-1] If, in addition to this, we
+consider the natural height of the rate of wages in such times, the
+small number and importance of the capitalist class (Sec. 201), the tardy
+insight of man into the course and nature of economic production,[190-2]
+it will not be hard to understand the odium attached in the middle age
+of every nation to so-called interest-usury[190-3] (_Zinswucher_).
+
+Most religions, the Christian excepted (the universal religion!), have
+been founded in the earlier stages of the nations who profess them, and
+have there, at least outwardly, exercised their greatest influence. No
+wonder, therefore, that so many religions have prohibited the taking of
+interest. Thus, for instance, the Jewish which, indeed, allows interest
+to be taken from foreigners, but raises loaning without interest among
+Jews in their commerce with one another, to the dignity of a duty
+binding on the conscience of the beneficent rich.[190-4] [190-5]
+Similarly in the Koran.[190-6] The Fathers of the Church, also, on the
+whole, look with disfavor on the taking of interest, relying upon
+well-known passages in the Old Testament, and, in part, on misunderstood
+expressions in the New.[190-7] This is especially true of the Fathers of
+the Church from the beginning of the fourth century, when the Roman
+empire was frightfully impoverished by the devastations of the
+barbarians, and as a consequence the conditions as to interest which
+prevail in the lowest stages of civilization had returned. Mercy towards
+the poor usually occupies the foreground in the demonstrations of the
+Fathers.[190-8]
+
+     [Footnote 190-1: Distress-debts in contradistinction to
+     acquisition-debts. (_Schmalz_, Staatswirthsch. Lehre in
+     Briefen, I, 227.) Compare _Hesiod._, Opp., 647; also
+     _Herodot._, I, 138.]
+
+     [Footnote 190-2: Thus _Aristotle_, calls the taking of
+     interest a gain against nature, since money is only a medium
+     of exchange, and cannot produce its like. (Polit., 3, 23,
+     Schn.) Similarly, _Plato_, De Legg., V, 742, and _Seneca_,
+     De Benef., VII, 10. Compare, however, _Tacit_., Annal, XIII,
+     42 seq. As late a writer as _Forbonnais,_ 1754, accounts for
+     interest thus: Some people hoard their money instead of
+     spending it; hence a scarcity or want of money, and those
+     who need it are obliged, in order to draw it out, to promise
+     to pay interest. (Elements de Commerce, II, 92 ff.)]
+
+     [Footnote 190-3: Numerous disturbances on account of debt,
+     during the first centuries of the Roman Republic, until
+     finally (compare _Livy_, VII, 42), the taking of interest
+     was in the year 349 (?) before Christ, entirely prohibited.
+     (_Tacit._, Annal. VI, 16.) The public opinion in such
+     matters may be understood from the words of Cato: _majores
+     ita in legibus posuerunt, furem dupli condemnari,
+     foeneratorem quadrupli_. (De Re rust.) The _foenerari_
+     compared with the _hominem occidere_. (_Cato_, in _Cicero_,
+     De Off., II, 25.) In the higher stages of civilization
+     little heed was paid to the law, in practice (compare
+     _Livy_, XXXV, 7; _Plut._, Cato, I, 21.), although the
+     democratic party always held fast to the legal perpetuation
+     of the prohibition of interest. (_Mommsen_, Roemisch. Gesch.,
+     III, 493.)]
+
+     [Footnote 190-4: Exod., 22, 25; Levit., 25, 35 ff.;
+     Deuteron., 15, 7 seq.; 23, 19 seq.; Psalms, 15, 5; 109, 11;
+     112, 5; Proverbs, 28, 8; Jerem., 15, 10; _Hes._, 18, 8.
+     After the return from exile, the prohibition was restored.
+     (Net. 5, 1 ff.) Was there, in the long duration of such
+     prescriptions, an educational measure having reference to
+     the peculiar fault towards which the Jewish national
+     character had a special tendency? In Josephus's time even,
+     usury practiced on one's country people was universally
+     despised (Antiq. Jud., IV, 8, 25.), and the Talmud continues
+     it. Compare _Michaelis_, De Mente ac Ratione Legis M. Usuram
+     prohibentis. In Russia, the orthodox Jews are wont to evade
+     the legal rate of interest by exacting one-half the profit,
+     and estimating it approximately in advance at a probable
+     sum. If, afterwards, the debtor declares under oath that he
+     made no profit, the creditor has no more to say; but then
+     the borrower would lose all credit in the future. (_Bonav.
+     Mayer_, Die Juden unserer Zeit, 1842, 13 seq.)]
+
+     [Footnote 190-5: The Mosaic passages, however, only prohibit
+     the taking of interest from poor people of one's own
+     country.]
+
+     [Footnote 190-6: The prohibition in the Koran, ch. 2, 30, is
+     regularly evaded in Persia, by deducting the proper amount
+     at the moment the loan is made. (_Chardin_, IV, 157 ff.)
+     Under the Mongolian rulers, it was done by way of
+     preference, by a fictitious sale for cash, at prices out of
+     all proportion. "Why cannot capitalists either buy land or
+     carry on trade?" asked Sultan Gazan, on an occasion when the
+     prohibition of interest was strongly insisted on.
+     (_d'Ohsson_, Histoire des Mongols, IV, 397.)]
+
+     [Footnote 190-7: For instance, _Luke_, 6, 34 ff., where
+     interest is no more prohibited than in _Luke_, 14, 12 ff.,
+     the mutual invitation of friends to a feast. Not less
+     groundless is the supposed allegorical allusion (_Matthew_,
+     21, 12) to interest-creditors. Rather might an approval of
+     interest be inferred from _Matthew_, 25, 27.]
+
+     [Footnote 190-8: _Origen_, for instance, would have the
+     creditor take no interest; but exhorts the debtor to return
+     double the amount unasked. (Homil., III, ad. Ps., Sec. 37.)
+     Hence there is here no condemnation of interest, but only an
+     effort to transform all legal relations into relations of
+     love. Quite the reverse in _Lactant._, Instit., VI, 12;
+     _Basil_, ad. Matth., 5 ff.; _Ambrose_, De Off., III, 3;
+     _Chrysost._, ad. Matth. Hom., 56; Tim., VII, 373 ff. (Paris,
+     1727); _Hieronym._, ad. Ezech., V, 367 c. (Francof, 1684);
+     _Augustin._, Epist., 54. Even _Cyprian_, 183, 318 (Paris,
+     1726).]
+
+
+SECTION CXCI.
+
+INTEREST-POLICY.--THE CANON LAW, etc.
+
+The canon law, from the first, endeavored to prevent contracts for
+interest. We may even say that the prohibition of interest-usury is the
+key-stone of the whole system of the political economy of the _Corpus
+Juris Canonici_. The development of that law coincides, as to time, with
+the senility of the Roman Empire and the childhood of modern
+nations.[191-1] In the golden age of papal power, every
+interest-creditor was refused the communion, the _testamenti factio_ and
+the right of ecclesiastical burial. Proceedings at law could not be
+instituted for the recovery of the principal debt until the creditor had
+restored all the interest obtained. In the council of Vienna, in 1311,
+it was declared heresy to defend the taking of interest. The universal
+antipathy of the church towards the growing importance of the
+_bourgeoisie_,[191-2] and the desire to give the spiritual courts an
+extensive jurisdiction in litigated cases, may have contributed largely
+to the adoption of these measures. In later medieval times, the secular
+power offered its services to execute these laws;[191-3] and, to judge
+of what public opinion in this matter was, we need only call to mind the
+decided disapproval of interest by Dante, Luther and Shakespeare.[191-4]
+
+The _Weddeschat_, a species of pledge or loan on security, constituted
+the transition from this state of things to the modern economic system
+of interest. The _Weddeschat_ was a sale with a reserved right of
+redemption, by which the debtor gave his creditor the use and enjoyment
+of a piece of land a sort of interest in kind, but which he could at any
+time recover back, by payment of the principal. This was not very
+oppressive on the debtor, as he was the only party who could recall the
+contract.[191-5] In a higher stage of civilization, indeed the
+continuance of this species of land-pledge would be exceedingly
+disadvantageous, since the momentary possessor of a piece of land which
+might be bought back by another person at any time at a price fixed in
+advance, would scarcely think of improving it.[191-6]
+
+And so, the introduction of rent-purchase (_Rentekauf_) was an important
+step in advance: the incumbrancing of a piece of land which remained in
+the possession of the debtor with an interest in kind paid to the
+creditor. The latter could never claim anything further, while the
+debtor and his heirs might redeem the land from this interest-incumbrance
+by paying back the purchase money.[191-7] As the Pope, on the 19th of
+January, 1569, renewed, in express terms, the prohibition of all interest
+not based on rent-purchase, so did the police ordinances of the Empire, of
+the sixteenth century, declare it to be the only lawful form of loaning at
+interest; provided, always, that only the debtor could demand the
+cancellation of the contract.[191-8] We find, however, that, on the whole,
+at least Protestant countries had, before 1654, adopted the modern Roman
+law relating to interest.[191-9] [191-10]
+
+However, the long persistence of the prohibition of the canon law in
+relation to interest, even with the refuge afforded by the introduction
+of the rent-purchase system, and of dormant partnerships (_Commanditen_)
+etc., so common in the sixteenth century,[191-11] would be
+unintelligible, if, contemporaneously, the Jews did not carry on an
+important and somewhat free trade in capital,[191-12] precisely as the
+Armenians, Hindoos and Jews do in the Mohammedan world of to-day.
+
+     [Footnote 191-1: The apostolic canons and several decrees of
+     councils of the fourth century prohibit the taking of
+     interest by the clergy. A Spanish provincial council dared,
+     in 313, to extend the prohibition to the laity. Pope Leo I.
+     condemned the taking of interest by the laity also, but only
+     in the form of a moral law. (443.) The synod of
+     Constantinople (814) punished the violation of the
+     prohibition with excommunication. See _Thomas Aquin._ (ob.
+     1274.) De Usuris, in the Quaestiones disputatae et quod
+     libetales. The canon law, however, always permitted
+     delay-interest (_Verzugszinsen_), and Gregory IX, allowed
+     _justa et moderata expensa et congruam satisfactionem
+     damnorum_ to be taken into account, (c. 17, X.) De Fora
+     Comp. II, 2. A tacit recognition of the productiveness of
+     capital is to be found in c. 7, X. De Donatt. inter. Virum.
+     cett. IV, 20; and the later schoolmen, _Antonin_ and
+     _Bernhardin_, (ob. 1459 and 144) are pretty clear on the
+     point. But _Albertus Magnus_ had already recognized the
+     _damnum emergens_ and _Thomas Aquinas_ the _lucrum cessans_
+     as causes of interest. (Tuebinger Zeitschr., 1869, 151, 159,
+     161.) The essentially modern character of Roman law, which,
+     in the form it has finally assumed, is in harmony with a
+     high development of national economy, accounts for the fact
+     that the glosse of _Accursius_ relying on _Irnerius_ and
+     _Bulgarus_ entirely ignores the prohibition of interest. For
+     a similar reason, in the 16th century, _Donellus_ and
+     _Cujacius_ stand entirely on Roman ground. In the interval,
+     indeed, men like _Bartolus_ and _Baldus_ were not disquieted
+     by the canon law. (_Endemann_, Studien in der
+     Roemisch-Canonischen Wirtchaftsund Rechtslehre, I, 18, 27
+     seq. 61.) Compare the rich historical material in
+     _Salmasius_, De Usuris, 1638; De Modo Usurarum, 1639, and De
+     Mutuo, 1640.]
+
+     [Footnote 191-2: _A. Thierry_, Lettres sur l'Histoire de
+     France, ed. 2., 248 ff.]
+
+     [Footnote 191-3: Thus the emperor Basil, in the year 867, as
+     _Justinian_ had before him, forbade the further payment of
+     interest, once the amount already paid equaled the
+     principal. (L. 29 seq.; Cod. IV, 32, Nov., 121, 2.) Compare
+     Sachsenspiegel, I, 54. _Edward the Confessor_ is said to
+     have issued the first prohibition of interest. (_Anderson_,
+     Origin of Commerce, a. 1045.) _Edward III._ forbade all
+     interest as the ruin of commerce. (Idem a., 1341.) About
+     1391, the lower House had its zeal aroused against the
+     "shameful vice of usury;" and again, in 1488, all interest
+     on money and all rent-purchases stipulated for on unlawful
+     conditions, were threatened with a fine of L20, the pillory,
+     and six months imprisonment. (_Anderson_, a., 1488.) In
+     France, the edict of Philip IV. of 1312. Compare
+     _Beaumanoir_, Coutumes, ch. 67, des Usures, No. 2.]
+
+     [Footnote 191-4: _Dante_, Inferno, XI, 106 ff., suggests
+     that interest-creditors had violated the command of _Moses_,
+     I, 3. _Macchiavelli_ seems to judge otherwise: Compare
+     Istoria Fior., VII, a, 1464; VIII, a, 1478. Very interesting
+     discussions on the legitimateness of the taking of interest
+     in 1353 seq., in which the Dominicans, up to the time of
+     _Savonarola_, defended the strictest opinion. (_M. Villan_,
+     III, 106.) _Luther_, Tract on Trade and Money, 1524, and
+     Sermon on Usury, 1519. Later still, _Luther_ became more
+     moderate. Thus, in his letter to the Danzig counsel, 1525,
+     in _Neumann_, Geschichte des Wuchers in Deutschland, 617
+     ff., in which, for instance, he blames the forcible carrying
+     out of interest-prohibitions, draws a distinction between
+     rich and poor, etc. So, too, in his letter: An die
+     Pfarrherren, wider den Wucher zu predigen, 1540.
+     _Melanchthon_, Phil. moral., 137 ff., is also more moderate.
+     _Calvin_ was clearer in this matter, and no longer
+     recognized the canonical prohibition of interest. (Epistolae
+     et Responsa, Hanov., 1597, epist. 383.) Similarly
+     _Zwinglius_, who will not praise interest, but considers it
+     a natural consequence of property (Opp. ed. Tugur., 1530, I,
+     319 ff.), and even _Erasmus_, ad. Evang. Luc., 6, 44. Adagia
+     v. Usurae nautt. In _Shakespeare_, compare Merchant of
+     Venice. _Bodinus_ also rejects on principle, even Roman
+     interest, which he held to be 1-1/2 per cent. a year: De
+     Republ., 1584, V. 2. Even the practical Dutch excluded the
+     so-called "table-keepers," from the communion up to 1657.
+     Compare the contests hereon in _Laspeyres_, Gesch. d.
+     volkswirthsch. Ansich. d. Niederl., 258 ff.]
+
+     [Footnote 191-5: The mutual right of cancellation
+     (_Kuendbarkeit_) in the case of these contracts during
+     periods poor in capital and credit, would easily have ruined
+     the debtor. Compare _J. Moeser_, Patr. Ph., II, No. 18. Hence
+     municipal rights in the latter part of the middle ages,
+     which in many other respects are so antagonistic to Rome,
+     have seldom anything to object to its measures in this
+     matter.]
+
+     [Footnote 191-6: A reason why, as _A. Struever_ remarks, the
+     Church which was more a creditor than a debtor, never
+     approved the Weddeschat above mentioned.]
+
+     [Footnote 191-7: The institution of rent-purchase
+     (_Rentekauf_) was already developed in the Hanse cities at
+     the beginning of the fourteenth century. (_Stobbe_, in the
+     Zeitschr. f. deutsches Recht, XIX, 189 ff.) About 1420, the
+     bishops of Silesia inquired of the Pope, whether such
+     contracts which had been the practice in Silesia for a
+     century were lawful. The answer was a favorable one,
+     although he left the rate of interest free in this
+     particular case (Extr. Com. III, 5, 1, 2); after _Alexander
+     IV._, however, as early as 1258, had instructed inquisitors
+     not to take part in litigations concerning usurious
+     contracts. Formerly all such contracts were prohibited in
+     express terms. (Decret. Greg., V. 19, 1, 2), although, in
+     France, the ordinances of Louis IX. and Louis X. (1254 and
+     1315) had established fixed rates of interest therefor.
+     Between pledge and rent-purchase, the right of the (virtual)
+     loaner to expel the (virtual) borrower, which after fell
+     into disquietude, occupies, so to speak, a middle place.
+     (Compare _Eichhorn_, D. St.- und R.-Gesch., II, Sec. 361, a
+     III, Sec. 450.) It was decreed, in France, in 1565, that all
+     rent in kind should be converted into money rent.
+     (_Warnkoenig_, Franz., St.- und R.-Gesch., II, 585 ff.)]
+
+     [Footnote 191-8: Magnum Bullar. Roman., II, 295.]
+
+     [Footnote 191-9: A Prussian law allowing interest even
+     without a contract of rent-purchase as far back as 1385.
+     (_Voigt_, Geschich. von Preussen, V, 467.) In Marseilles, in
+     1406, a rate of interest of ten per cent. allowed.
+     (_Anderson_, Origin of Commerce, s. a.) Likewise in England,
+     37 Henry VIII., c. 9. In Brandenburg, 1565, 6 per cent.
+     (_Mylius_, C. C., March, II, 1, 11.) A retrograde step by 5
+     and 6 Edward VI., c. 20; by which all interest was again
+     prohibited. These laws had, practically, the effect of
+     increasing interest to 14 per cent., and were therefore
+     repealed in 1571. How unnatural the prohibition was is
+     apparent from the fact that by 4 and 5 Philip and Mary, c.
+     2, the possessor of 1,000 marks was estimated equal to a
+     person with L200 annual income. In Denmark, the taking of
+     interest at 5 per cent. was allowed in 1554, since "although
+     it is contrary to God's command, yet [according to an
+     opinion given by _Melanchthon_] this commerce cannot be
+     entirely abolished." (_Kolderup-Rosenvinge's_ Daenische R.
+     G., in _Homeyer_, Sec. 142.) Similar views of the elector
+     Augustus, 1583. (Cod. August 1, 139 ff.)
+
+     The German Empire, in 1600, allowed the debtor to contract
+     that, in case of delay, the contract might be declared
+     annulled. In France, on the other hand, even during the 18th
+     century, nearly all loans were made in the form of
+     _rent-purchase_ (_Law_, Trade and Money, 127), and the
+     creditor could declare the contract void only in case the
+     debtor did not pay him the rent. (_Warnkoenig_, Franz. R. G.,
+     II, 585 ff.) For strictly Catholic countries, the prohibition
+     relating to the taking of interest still really remains.
+     However, _Leo X.'s_ bull, Inter multiplices, exempts the
+     so-called _monti di pieta_, and by this means put obstacles
+     in the way of saving, and promoted real usury. Of this last,
+     _Niebuhr_, Briefe, II, 399, adduces very striking instances
+     from the Pope's own temporal dominion. In the case of
+     pledge, even 12 per cent. per annum is required. (Rom im
+     Jahr, 1833, 163.) Yet, in 1830, the Poenitentiaria Romana
+     instructed the clergy, without, however, deciding the chief
+     question, not to disquiet people any longer in the
+     confessional who had taken interest. (_Guillaumin_,
+     Dictionnaire de l'Economie politique, art. usure.) On the
+     Russian Sect, _Staroverzen_, which still condemns the taking
+     of interest, see _Storch_, Handbuch, II, 19. By the Russian
+     government it was permitted very early. _Ewers_, Aeltestes
+     Recht der R., 323 seq.]
+
+     [Footnote 191-10: The first scientific defense of interest
+     is generally considered to be that of _Salmasius_, loc. cit.
+     Yet _Bacon_, Sermones fideles, C. 39 (after 1539), and at
+     bottom also _H. Grotius_, De Jure Belli et Pacis, 1626,
+     taught that it was lawful to take interest in so far as it
+     was not against the love due to one's neighbor (_Endemann_,
+     loc. cit., I, 62 ff.), and _Besold_, Quaestiones aliquot de
+     Usuris, 1598, was as near the truth as _Salmasius_. Compare
+     _supra_, note 4. How earnestly _North_ and _Locke_ labored
+     against the lowering of interest by governmental
+     interference, see _Roscher_, Z. Gesch. der engl.
+     Volkswirths., 90, 102 ff. The best writers, in strictly
+     Catholic countries, did violence to themselves in this
+     matter for a long time after. Thus _Galiani_, Della Moneta,
+     II, I seq.; and one cannot help being greatly surprised at
+     witnessing the subtleties which _Turgot_, Memoire sur le
+     Pret d'Argent, 1769, had to have recourse to, to prove the
+     clearest matters. Thus: at the moment of the loan, a sum of
+     money is exchanged against the mere promise of the other
+     party, which is certainly less valuable. [If it were not,
+     why should he borrow?] This difference must, therefore, be
+     made up in interest, etc. _Mirabeau_ even was a decided
+     opponent of interest. (Philos. rurale, ch. 6.) Compare,
+     however, the theological defense by _Viaixnes_, 1728, in the
+     Traite des Prets de Commerce, Amsterdam, 1759, IV, 19 ff.]
+
+     [Footnote 191-11: Of course, evaded in a thousand ways in
+     practical life. Thus, for instance, people gave wheat, other
+     commodities, and even uncoined gold and silver as loans, and
+     had what interest they pleased promised them. In alienating
+     the capital, they might stipulate _a fonds perdu_, as they
+     thought best. (Turgot, I, c. Sec. 29.) When debtors had
+     promised under oath to make no complaint, the church ordered
+     that they should be helped officially. When the temporal
+     power showed itself lax, Alexander III. decreed that such
+     questions should be brought before the spiritual courts.
+     (Decret. Greg. V., tit. 19; 13 _Innocent_, Epist., VIII, 16;
+     X, 61.) In England, _Richard of Cornwall_ obtained a
+     monopoly of the whole loaning business. (_Matth. Paris_, ed.
+     1694, 639: compare, also, 20 Henry III., 5.), from which
+     fact the existence of the custom of taking interest about
+     1235, is apparent. Cases in which English kings borrowed and
+     promised payment back _cum damnis, expensis et interesse:_
+     Anderson, Origin of Commerce, a. 1274, 1339.]
+
+     [Footnote 191-12: Compare _Gioja_, Nuovo Prospetto, III,
+     190. The canon law desired to put an interdict on their
+     taking interest also: Decret. Greg., V, tit. 19, 12, 18.
+     Frequently, also, a minimum of interest was provided for
+     them: Ordonnances de la Fr., L. 53 seq. II, 575. Receuil des
+     anciennes, Lois, I, 149, 152. John of France extended this
+     to four _deniers_ per _livre_ per week, that is, annually
+     86-2/3 per cent.! (_J. B. Say_, Traite II, ch. 8.) In
+     Austria, in 1244, 174 per cent. allowed! (_Rizy_, Ueber
+     Zinstaxen und Wuchergesetze, 1859, 72 ff.)]
+
+
+SECTION CXCII.
+
+INTEREST-POLICY.--GOVERNMENT INTERFERENCE.--FIXED RATES.
+
+Instead of the medieval prohibition of interest, most modern states have
+established fixed rates of interest, the exceeding or evasion of which,
+by contract or otherwise, is declared null and void, and is usually
+punishable as usury.[192-1] If the fixing of the rate is intended to
+depress the rate of interest customary in the country,[192-2] [192-3] it
+uniformly fails of its object. If control were great enough, vigilant
+and rigid enough, which is scarcely imaginable, to prevent all
+violations of the law, it is certain that less capital would be loaned
+than had been, for the reason that every owner of capital would be
+largely interested in employing his capital in production of his own.
+More capital, too, would go into foreign parts, and there would be less
+saved by those not engaged in any enterprise of their own. All of this
+would happen to the undoubted prejudice of the nation's entire
+economy.[192-4] [192-5]
+
+If, on the other hand, the control by the government be not great
+enough, the law would, in most cases, be evaded; especially as each
+party, creditor as well as debtor, would find it to his advantage to
+evade it. The latter, who otherwise would not be able to borrow at all,
+is, as a rule, more in need of obtaining the loan, than the creditor is
+to invest his capital. How easily, therefore, might he be induced to
+bind himself by oath or by word of honor![192-6] He would, moreover, be
+compelled to pay the creditor not only the natural interest and the
+ordinary insurance premium, but also for the special risk he runs when
+he violates the law threatening him with a severe penalty.[192-7] Hence
+the last result is either a material enhancement of the difficulty of
+obtaining loans or an enhancement of the rate of interest.[192-8]
+
+     [Footnote 192-1: This is, historically, the second meaning
+     of the word usury, while in the middle ages, for instance in
+     England, under Elizabeth (_D. Hume_), the taking of any
+     interest whatever was called usury. Science should employ
+     this word only in the sense used in Sec. 113.]
+
+     [Footnote 192-2: In Switzerland, at the end of the 17th
+     century, not only were those punished who took more interest
+     than the law prescribed, but those who took less. (Compare
+     Rechtsquellen von Basel, Stadt und Land, 1865, Bd. II.)]
+
+     [Footnote 192-3: Fixed rates of interest of this kind are to
+     be accounted for in part by a still continuing aversion of
+     the legislator for interest in general; in part, by the
+     opinion which prevails that precisely the most useful and
+     most productive classes might be elevated by an artificial
+     lowness of the rate of interest. (But most especially the
+     government itself, which borrows more than it lends.) When
+     Louis XIV. about 1665, lowered the rate of interest to 5 per
+     cent., he claimed in the preamble to his decree that it
+     would have the effect of promoting the welfare of landowners
+     and business men, and of preventing idleness. Similarly
+     _Sully_, Economies royales, L, XII. And so _J. Child_,
+     Discourse of Trade, 69 ff., says that every lowering of the
+     rate of interest, by law, produced a completely
+     corresponding increase of the national wealth. He says,
+     since the first reduction (?) of interest in 1545, the
+     national wealth increased six fold; since the last, in 1651,
+     the number of coaches increased a hundred fold;
+     chamber-maids wore now better clothes than ladies formerly;
+     on 'Change there were more persons with a fortune of L10,000
+     than before with L1,000. Similarly _Culpeper_: compare
+     _Roscher_, Z. Geschichte der eng. Volkswirthsch., 57 ff.
+     Later, the French generally thought that a lowering of the
+     rate of interest would prove injurious to the _noblesse de
+     la robe_; hence even in 1634, parliament was opposed to it.
+     (_Forbonnais_, Recherches et Considerations, I, 48, 226.)
+     _Darjes_ says that information of all loans of capital
+     should be made to the police authorities, and that the
+     authorities might compel payment and the loaning of the
+     principal over again to parties in need of capital. (Erste
+     Gruende, 426 seq.) Something analogous practically provided
+     for by the Wuertemberg _Landesordnungen_ of the 16th century.
+     (Compare also _von Schroeder_, F. Schatz- und Rentkammer,
+     XXV, 3.)]
+
+     [Footnote 192-4: Precisely a high rate of interest is a
+     powerful incentive to saving, and to the importation of
+     capital.]
+
+     [Footnote 192-5: _Usurae palliatae_, interest taken out of
+     the capital, or stem-interest, called also money-usury in
+     contradistinction to patent interest-usury. To this category
+     belong the written acknowledgments of indebtedness to a
+     larger amount than that actually received; acknowledging it
+     in a higher kind of money than that in which the loan was
+     made; the compulsory taking by the debtor of commodities at
+     a disproportionately high price, in the place of money, or
+     at a disproportionately low one, by the creditor. See the
+     enumeration of such things in the police regulations of the
+     empire, 1530, art. 26, and 1548, art. 17. Thus, in Paris,
+     jewels are "sold" to students hard-pressed for money, which
+     immediately find their way to the _monts de piete_, and have
+     to be paid for some time after to the usurious "seller," at
+     a most exorbitant price. The person who loans $100 at 6 per
+     cent., and retains the interest for the next following year
+     from the date of the loan, takes in reality nearly 6.4 per
+     cent. Fraudulent accessory expenses of all kinds, _faux
+     frais_, expenses of registration, for prolongation, and
+     extinguishment, etc. Here belong, also, the provisions
+     introduced into contracts to make redemption more difficult,
+     the fixing of terms of payment in such a manner that the
+     debtor is almost forced to let them slip by--called "usury
+     in the conditions" in Austria. Remarkable instances from the
+     16th century in _Vasco_, Usura libera, Sec. 57 ff. Recently,
+     _Braun_ und _Wirth_, Die Zinswuchergesetze, 1856, 190 ff. In
+     view of the manifold business transactions behind which the
+     interest-usurer may take refuge, the complete prevention of
+     the latter would break the legs of commerce (loc. cit., 145
+     ff.).]
+
+     [Footnote 192-6: If the state, by annulling such promises,
+     should incite the people to violate them, it would be a
+     frightful step towards the demoralization of the nation:
+     "thus rewarding men for obtaining the property of others by
+     false promises, and then, not only refusing payment, but
+     invoking legal penalties on those who have helped them in
+     their need." (_J. S. Mill_, Principles, V, ch. 10, 2.)
+     Besides, the Austrian usury law of 1803 punishes the
+     borrower also as a spendthrift, and imprisons him for six
+     months (Sec. 18), or else it designates where he shall make his
+     domicile (_Ortsverweisung_). Modern loaning on drafts and
+     bills of exchange, the acceptance of which is forged with
+     the knowledge of the creditor, corresponds to what
+     _Plutarch_, Quaest., Gr., 53, relates of the Cretans, who
+     had, especially in later times, the worst possible
+     reputation for avarice and dishonesty. (_Polyb._, VI, 46.
+     _Paul_ to Titus, I, 12.)]
+
+     [Footnote 192-7: He must insure him against the usury laws.
+     (_Adam Smith._) According to _Krug_, Staatsoekonomie, the
+     usury laws should be called so because they promote usury,
+     not because they prevent it. Compare to some extent,
+     _Montesquieu_, Esprit des Lois, XXII, 18 ff.]
+
+     [Footnote 192-8: When Catherine II. reduced the rate of
+     interest in Livonia, in 1785, from 6 to 5 per cent., it soon
+     became impossible, even on the best security, to borrow at
+     less than 7 per cent. (_Storch_, Handbuch, II, 26.) And so,
+     when in New York, in 1717, the rate of interest was reduced
+     to 6 per cent., it became necessary, the following year, to
+     raise it again to 8 per cent. The merchants, themselves,
+     petitioned that it might be so raised, because they found it
+     impossible to get any loans whatever. (_Ebeling_, Geschichte
+     und Erdbeschreib. von Nord Amerika, III, 152.) In Chili, the
+     legal rate of interest is 6 per cent., the actual rate,
+     however, never under 12 per cent., and frequently 18 to 24
+     per cent. In Peru, on the other hand, the repeal of the
+     usury laws rapidly reduced the rate of interest from 50 to
+     24 per cent., and finally to 12. (_Poeppig_, I, 118.)]
+
+
+SECTION CXCIII.
+
+INTEREST-POLICY.--EFFORTS TO AVOID THE EVIL EFFECTS OF A FIXED RATE.
+
+It has been thought possible to avoid the evil effects of a fixed legal
+rate of interest, by regulating it in such a way as to make it
+coincident with the rate customary in the country.[193-1] But there are
+numberless transactions in which an insurance premium, or premium for
+risk or certain expenses of administration[193-2] on the part of the
+loaner is inseparable from the true interest. Here, even the law which
+entered most into detail could never properly provide for the infinite
+gradations or shades of risk and trouble; and the rate in a great many
+transactions would, therefore, be placed below the natural height.
+Turgot long since observed that the value of a promise of future payment
+is different not only for different persons, but at different times.
+Thus, for instance, it is really less after there have been numerous
+cases of bankruptcy than at other times.[193-3] If, now, it was desired
+to fix the maximum rate of interest in such a way that it should equal
+the rate customary in the country, where the security is good, the best
+real property security for instance, the consequence would be, that
+those persons who had no such guaranty to offer (leaving the loaning
+"among brothers" out of the question) would either be unable to borrow
+money at all, or, by evading the law, only at an artificially higher
+rate. Hence the legislator causes injury where he wished to favor. This
+has been observed in England in almost all past commercial
+crises.[193-4] The man who makes it his business to loan his capital, on
+short time and in small sums, undertakes a trade which the examination,
+and the surveillance of a large number of small debtors, and the
+necessity of reinvesting the many small sums paid him, render
+exceedingly troublesome and disagreeable. Moreover, in loaning on short
+terms of payment, there is always danger that his money may lie idle for
+some length of time. These are reasons sufficient, why, in such cases,
+when the whole compensation is denominated interest, a rate of interest
+greater than usual in the country is equitable and even necessary. (Sec.
+179.)[193-5]
+
+It has been frequently suggested that spendthrifts and adventurers
+should be hindered using, or to speak more correctly, abusing the
+nation's wealth by laws prohibiting the rate of interest at which they
+might be expected to obtain credit; and this in the interest alike of
+the creditors they might possibly find and in their own.[193-6] But
+almost every inventor of genius, from Columbus to Stephenson, has been
+obliged to be considered "an adventurer" for a time by "solid men." The
+law limits him thus, and more especially during the critical period of
+outlay which precedes the undoubted triumph of his idea, to his own
+means or the gifts of others.[193-7] And how inadequate, as rule, are
+both. The rich are as seldom discoverers, as discoverers are skillful
+supplicants. And, as regards spendthrifts, they may ruin themselves in
+so many thousands of ways, especially by buying or selling, and
+unhindered by the state, that it is scarcely apparent why the one way of
+borrowing should be legally closed to them.[193-8] How is it, if the law
+itself drives them into the hands of a worse class of creditors, and
+compels them to pay yet a higher rate of interest? Are they not simply
+more rapidly ruined? States, themselves, have scarcely ever given any
+heed to their own usury laws in borrowing or loaning.[193-9]
+
+     [Footnote 193-1: In Austria, in 1803, in loaning on pledge,
+     4 per cent.; in other loans and in the trade of merchants
+     with one another, 6 per cent. In France, since 1807, with
+     merchants, 6 per cent.; with others, 5. _Salmasins_, De Mono
+     Usur., c. 1, advises that the maximum should be fixed as
+     high as that usual in the most unfavorable cases. The
+     reduction from such rate, where possible, would regulate
+     itself.]
+
+     [Footnote 193-2: _Petty_, Quantulumcunque concerning money,
+     1682.]
+
+     [Footnote 193-3: Sur le Pret d'Argent, Sec. 36.]
+
+     [Footnote 193-4: How many merchants would have avoided
+     bankruptcy here if they had been allowed to borrow at 8 per
+     cent.! The established rate of 5 per cent. was certainly too
+     low, considering the great demand for capital and the want
+     of confidence at the moment, to permit capital to be loaned
+     at that rate. Many saw themselves compelled to sell their
+     merchandise or evidences of state indebtedness at a loss of
+     30 per cent., in order to meet their obligations. But the
+     person who, to anticipate the receipts due in 6 months, for
+     instance, consents to suffer a loss of 30 per cent., pays,
+     in a certain sense, interest at the rate of 60 per cent. a
+     year. Compare _Tooke_, Considerations on the State of the
+     Currency, 60, and History of Prices, II, 163, on the Crisis
+     of 1825-26. Since the Bank, least of all, could exceed the
+     legal rate of interest, numberless applications were made to
+     it in times of war in order to obtain the difference between
+     the legal rate and the rate usual in the country.
+     (_Thornton_, Paper Credit of Great Britain, ch. 10.)
+     Prussia, November 27, 1857, suspended the usury laws for 3
+     months, on account of the commercial crisis, except the
+     provisions relating to pawn-broker and minors.]
+
+     [Footnote 193-5: _Turgot_ tells of Parisian "usurers" who
+     made weekly advances to the market women of la Halle, and
+     received for 3 livres, 2 sous interest; that is 173 per
+     cent. a year. The premium for insurance may have been very
+     high here. When such loaners were brought before the courts,
+     and they were sentenced to the galleys, the usual punishment
+     for usury, their debtors came and testified their gratitude
+     by begging for mercy to them! (Memoire sur le Pret d'Argent,
+     Sec. 14, 31.) Compare _Cantillon_, Nature du Commerce, 276.]
+
+     [Footnote 193-6: Thus, _Adam Smith_, Wealth of Nations, II,
+     ch. 4. Similarly, _Roesler_ Grundsaetze, 495 ff. Compare,
+     _per contra_, _Jer. Bentham_, Defense of Usury: showing the
+     Impolicy of the present legal Restraints on the Terms of
+     pecuniary Bargains in Letters to a Friend. To which is added
+     a Letter to Adam Smith on the Discouragement imposed by the
+     above Restraints to the Progress of inventive Industry,
+     1787; 3 ed., 1816.]
+
+     [Footnote 193-7: The first steamboat in the United States
+     was, for a long time, called the "Fulton-folly!"]
+
+     [Footnote 193-8: It is just as hard to see why only
+     money-capital should have a fixed rate of interest, and not
+     buildings, etc. likewise.]
+
+     [Footnote 193-9: In Holland, the legal rate of interest was
+     lowered, in 1640, to 5 per cent., and in 1655 to 4; but not
+     since. (_Sir J. Child_, Discourse of Trade, 151.) Besides,
+     _Locke_, Considerations on the Lowering of Interest, Works,
+     III, 34, assures us that, in his time, a man in England
+     could make contracts for unlimited interest.]
+
+
+SECTION CXCIV.
+
+INTEREST-POLICY.--REPEAL OF THE USURY LAWS.
+
+However, the complete repeal of the usury laws[194-1] has not under all
+circumstances accomplished what it was supposed it would; and the state
+should take great care, lest by an incautious framing of its laws, it
+should put judges in such a position that they may be compelled to
+cooperate in the execution of immoral contracts.[194-2] In the lowest
+strata, so to speak, of the loaning business, the medieval condition
+continues to exist (Sec. 190) after it has disappeared in the upper. Here,
+the loan is effected scarcely ever for the purposes of production, but
+most generally because of the most urgent necessity; and the debtor is
+not in a condition, from want of education, and especially from his
+ignorance of arithmetic, to estimate the magnitude of the burthen he has
+undertaken. The business of loaning is, under such circumstances,
+considered dishonorable, to some extent, by the public. And when a
+business necessary in itself is held disreputable by public opinion, the
+usual result is that bad men alone engage in it.[194-3] Real competition
+which would but fix the natural price is wanting here in proportion as
+the debtor is anxious for secrecy.[194-4]
+
+Abuses in this respect are best guarded against by the establishment of
+government loan-institutions, and by the publicity of the administration
+of justice to debtors.[194-5] Besides, every contract might be
+prohibited the terms of which were such that an inexperienced borrower
+could not from them obtain a clear conception of the burthen he accepts,
+or which hindered him from paying the debt at a proper time.[194-6]
+
+Lastly, there should be a rate of legal interest fixed by the state to
+be charged in such cases as interest is found to be in justice due, but
+in which none is provided for by contract; and this rate should
+approximate as nearly as possible to the rate usual in the
+country.[194-7] [194-8]
+
+     [Footnote 194-1: In 1787, Joseph II. abolished the penalties
+     for usury, but allowed the provisions denying a legal
+     remedy, in cases of usurious demand of over 4 per cent. for
+     hypothecations, 6 per cent. for bills and 5 per cent. for
+     other loans, to remain. Compare the prize essay by
+     _Guenther_, Versuch einer vollstaendigen Untersuchung ueber
+     Wucher und Wuchergesetze, 1790; _v. Kees_, ueber die
+     Aufhebung der Wuchergesetze, 1791; _Vasco_, Usura libera,
+     1792. The opposite view represented by _Ortes_, E. N., II,
+     24, and _v. Sonnenfels_, Ueber Wucher und Wuchergesetze,
+     1789, and zu Herrn _von Kees_, Abhandlung, etc., 1791. The
+     debates on the repeal of the usury laws in the French
+     Chamber of Deputies, after which _Lherbette's_ motion in
+     favor of their repeal was rejected. In France they were,
+     during the assignat-period of bewilderment virtually, and in
+     1804-1807 expressly (C. C., Art. 1907), but only
+     provisionally repealed. In Wuertemberg, all those having the
+     right to draw bills of exchange were exempted from them in
+     1839. Since the law of 1848, governing bills of exchange,
+     gave all persons capable of contracting, the right to draw
+     bills of exchange, the usury laws have ceased to have any
+     existence; without much noise before and without much
+     complaint after. (A. Allgem. Ztg., 24 Maerz, 1857.) Recent
+     complete or partial repeal of the usury laws: in England, in
+     1854; in Denmark, in 1855; in Spain, in 1856; Sardinia,
+     Holland, Norway and Geneva, 1857; Oldenburg, 1858; Bremen,
+     1859; in the kingdoms of Saxony and Sweden, in 1864;
+     Belgium, 1865; Prussia, the North German Confederation, and
+     to some extent Austria, in 1867.]
+
+     [Footnote 194-2: Compare _F. X. Funck_, Zins und Wucher,
+     1868, a moral theological treatise which rightly demands a
+     more rigid popular morality in relation to real usury, after
+     the repeal of the usury laws. The recent cases in which
+     courts have juridically acquitted usurers because they could
+     not do otherwise, but have branded them morally, are of very
+     questionable propriety, in view of the facility with which
+     high and usurious rates of interest may be confounded. _R.
+     Meyer_, Emancipationskampf, I, 78, advises that the
+     capitalist be allowed to ask whatever interest he wishes,
+     but that the state, as judge and executor of the laws,
+     should enforce payment only at a certain rate determined by
+     law.]
+
+     [Footnote 194-3: Many laws seem to purposely permit this,
+     inasmuch as they allow a rate of interest, higher in
+     proportion as the position of the creditor is less
+     respectable. Thus, formerly, in some places, the Jews might
+     require higher interest than the Christians. Justinian
+     allows _personis illustribus_ only 4 per cent.; ordinary
+     private persons, 6 per cent.; money-changers, etc., 8 per
+     cent. (L. 26, Cod. IV, 32.) On the other hand, according to
+     the Indian legislation of Menu, the Brahman is obliged to
+     confine himself to 2, the warrior to 3, the _vaysya_ to 4,
+     the _sudra_ to 5 per cent. per month at most. (Cap. 8.)]
+
+     [Footnote 194-4: _Turgot_ considered that only the _preteurs
+     a la petite semaine_, pawnbrokers who loaned to hard-pressed
+     people on the confines of the middle class and artisans, and
+     the infamous characters who advanced money to the sons of
+     rich men to spend in dissipation, still passed for usurers.
+     Only the latter are injurious; not, however, because of the
+     high rate of interest they charge, but because they help in
+     a bad cause. (Sur le Pret d'Argent, Sec. 32.) According to
+     _Colquhoun_, Police of the Metropolis, 167, there are women
+     in London from whom the hucksteresses borrow 5 shillings
+     every day and return them every evening with 1/2 shilling
+     interest. Something analogous happens much more frequently
+     in the country, especially in the loaning in kind of
+     productive capital to poor persons. Thus, in Tessin, there
+     are many "iron cattle" which the borrower is obliged to
+     return at their original value, plus an interest of about 36
+     per cent. (_Franscini_, C. Tessin, 152.) On the Rhine,
+     frequently as much as 200 per cent. a year, is stipulated
+     for in such contracts. _Morstadt_, der N. Oekonom. Heft., IX,
+     727.]
+
+     [Footnote 194-5: Compare _J. J. Becher_, Polit. Discurs,
+     1668, 219; _v. Schroeder_, F. Schatz- und Rentkammer, Bd. Secs.
+     123, 133 ff. The first _montes pictatis_ were expressly
+     intended to check the usury of the Jews. Thus, in Florence,
+     in 1495, after the expulsion of the Jews, voluntary
+     contributions were made to found a municipal loaning
+     establishment. Similarly, _Tiberius_, Tacit. Ann., VI, 16
+     seq. _Count Soden_, Nat-Oek., IV, 57; V, 319, advises that
+     all contracts for interest should be recorded in a public
+     registry, under pain of their being held not actionable.]
+
+     [Footnote 194-6: _Guenther_, loc. cit., thinks that, in every
+     contract in which the rate of interest is masked, its real
+     rate should be expressed under penalty of invalidity. In
+     addition to this, he would have those who have attained
+     their majority put in full control of their fortune only
+     after they had undergone an examination.
+
+     It seems opportune that the old prohibition against interest
+     on interest (_Cicero_, ad. Att., V, 21, and L, 26, Digest,
+     XIV, 6) and the provision that the interest should not be
+     permitted to be greater than the _alterum tantum_ (Digest,
+     l. c.) should be permitted to continue. (Digest, l. c.) Both
+     of these measures were first decreed by Lucullus, for the
+     protection of Asia Minor. Compare Sec. 115. Florentine law, of
+     1693, that interest in arrears, or that interest on interest
+     beyond 7 years, should not be added to the principal without
+     an express contract to that effect. (_Vasco_, Usura libera,
+     Sec. 155.) In England, the usury laws were by 2 and 3 Victor.,
+     c. 37, repealed, but only to the extent of excepting from
+     their provisions bills of not over 12 months, and money
+     loans not over L10. Compare _Rau_, Lehrbuch II, Sec. 323.]
+
+     [Footnote 194-7: Compare _Locke_, Considerations: Works, 10,
+     32 ff. In Spain, the Council of State is required to
+     regulate the rate of legal interest yearly (law of 1856,
+     art. 8); a thing which, according to _Braun_, would be
+     better done in each individual case by the judges
+     themselves. (_Faucher's_ Vierteljahrsschrift, 1868, II,
+     13.)]
+
+     [Footnote 194-8: In Athens, the rate of interest in general
+     was voluntary from the time of Solon, who, however, did away
+     with slavery for debt. (Lysias adv. Theomn., 360.) Yet there
+     was a legal rate of interest of 18 per cent. for the case in
+     which a divorced husband delayed the return of his wife's
+     dowry. Compare _Boeckh_, Staatshaushalt der Athener, I, 148.]
+
+
+
+
+CHAPTER V.
+
+THE UNDERTAKER'S PROFIT. (_UNTERNEHMERLOHN._)
+
+
+SECTION CXCV.
+
+THE REWARD OF ENTERPRISE.
+
+The essence of an enterprise or undertaking, in the politico-economical
+sense of the word, consists in this, that the undertaking party engages
+in production for the purpose of commerce, at his own risk. In the
+earlier stages of a nation's economy, the production of consumers is,
+naturally enough, limited chiefly by their own personal wants. Somewhat
+later, when the division of labor has been further developed, the
+workman produces at first, enough to meet occasional determinate
+"orders;" and still later to meet them regularly and as a business.
+Later yet, and in stages of civilization yet higher, especially when the
+freedom of labor constantly grows, as it is wont to, here, and the
+freedom of capital and trade becomes more extensive, enterprise plays a
+part which grows more important as time rolls on, and is usually carried
+on more at one's own risk.[195-1] This transition is a great advance,
+inasmuch as the advantages of the cooperation of labor and of _use_ may
+be utilized in a much higher degree by undertakers (_Unternehmer_) than
+by producers who labor only to satisfy their own household wants, or to
+meet "orders" already made. The awakening of latent wants, a matter of
+the utmost importance to a people who would advance in civilization, is
+something which can enter into the mind only of a man endowed with the
+spirit of enterprise (an undertaker).[195-2]
+
+While most English political economists have confounded the personal
+gain of the undertaker with the interest on the capital used by
+him,[195-3] many German writers have called the "undertaker's earnings"
+or profit a special, and fourth, branch of the national income,
+coordinate with rent, wages, and the interest on capital.[195-4] Yet,
+the net income of every undertaker is either the fruit of his own land
+used for purposes of production and of his capital, in which case it is
+subject to the usual laws of development of rent and interest; or, it
+must be considered as wages paid for his labor.[195-5] These wages he
+earns, as a rule, by organizing and inspecting the work, calculating the
+chances of the whole enterprise; frequently by, at the same time,
+keeping the books and acting as cashier; and, in the case of small
+undertakings, as a common fellow-workman. (Tradesman, peasant). In every
+case, however, even when he puts an agent paid by himself in his place,
+he earns these wages from the fact that his name keeps the whole
+enterprise together; and for the reason that, in the last
+instance,[195-6] he has to bear the care and responsibility attending
+it.[195-7] When a business goes wrong, the salaried director or foreman
+may permit himself to be called on to engage in another; but the weary,
+watchful nights belong to the undertaker or man of enterprise, alone;
+and "how productive such nights frequently are!"[195-8]
+
+This profit of the undertaker is subject essentially to the same natural
+law as wages in general are; only it differs in this from all other
+branches of income, that it can never be stipulated for in advance.
+Rather does it consist of the surplus which the product of the
+undertaking affords over and above all the rent stipulated for in
+advance or estimated at the rate usual in the country, the interest on
+capital, and wages of common labor.[195-9]
+
+     [Footnote 195-1: At first, usually imperfect enterprises in
+     which the shop-instruments, etc., are kept ready for present
+     orders; and then complete or perfect enterprises. (_v.
+     Mangoldt_, Volkswirthschaftslehre, 255.)]
+
+     [Footnote 195-2: _v. Mangoldt_, Lehre vom Unternehmergewinn,
+     1855, 49 ff. The same author shows, in his
+     Volkswirthschaftslehre, that it is better for the general
+     good that the risk should be borne by the producer than by
+     the consumer. In the case of the taking of orders, there is
+     danger only of a technic failure, but in enterprise proper,
+     there is possible also an economic miscarriage of the work,
+     even when successful from a technic point of view. But in
+     the case of the undertaker (man of enterprise),
+     responsibility is much more of an incentive, production much
+     more steady, and therefore much better able to exhaust all
+     means of help. Consumers are much more certain in their
+     steps, as regards price, etc., since they find what they
+     want ready made.]
+
+     [Footnote 195-3: Thus _John Stuart Mill_, Principles, II,
+     ch. 15, 4, teaches with a certain amount of emphasis that
+     the "gross profits of stock" are different not so much in
+     the different branches in which capital is employed, as
+     according to the personal capacity of the capitalist himself
+     or of his agents. There are scarcely two producers who
+     produce at precisely the same cost, even when their products
+     are equal in quality, and equally cheap. Nor are there two
+     who turn over their capital in precisely the same time.
+     These "gross profits" uniformly fall into three classes:
+     reward for abstinence, indemnity for risk, remuneration for
+     the labor and skill required for superintendence. _Mill_
+     complains that there is in English no expression
+     corresponding to the French _profit de l'entrepreneur_. [The
+     translator has taken the liberty to use the expression
+     "undertaker's profit," for what the French call the _profit
+     de l'entrepreneur_, and the Germans _Unternehmerlohn_, spite
+     of its funereal associations, and because Mill himself
+     employed it, although he recognized that it was not in good
+     usage.--TR.] (II, ch. 15, 1) _Adam Smith_ had the true
+     doctrine in germ (Wealth of Nat., I, ch. 6), but those who
+     came after him did little to develop it. Compare _Ricardo_,
+     Principles, ch. 6. 21. _Read_, Political Economy, 1829, 262
+     ff., and _Senior_, Outlines, 130 seq., were the first to
+     divide profit into two parts: interest-rent (_Zinsrente_)
+     and industrial gain. Similarly, _Sismondi_, N. P., IV, ch.
+     6. According to _A. Walker_, Science of Wealth, 1867, 253,
+     285, "profits are wages received by the employer."]
+
+     [Footnote 195-4: _Hufeland_, Grundlegung, I, 290 ff.;
+     _Schoen_, Nat-Oek., 87, 112 ff.; _Riedel_, Nat-Oek., II, 7 ff.;
+     _von Thuenen_, Der isolirte Staat, II, 1 80 ff.; _v.
+     Mangoldt_, Unternehmergewinn, 34 ff. The latter divides the
+     undertaker's profit (_profit de l'entrepreneur_) into the
+     following parts:
+
+     A. Indemnity for risk. If this be only an indemnity exactly
+     corresponding to the risk, it cannot be looked upon at all
+     as net income, but only as an indemnification for capital.
+     If individual undertakers, favored by fortune, receive a
+     much larger indemnification than is necessary to cover their
+     losses, such indemnification is not income either, but an
+     extraordinary profit not unlike a lottery-gain, unless it be
+     called, perhaps, the reward of extraordinary courage
+     (_Eiselen_), i. e., wages. If, lastly, the indemnity is
+     uniformly somewhat larger than the risk, in order to
+     compensate for the continual feeling that one is running a
+     risk, it must be remembered that all remuneration for
+     present sacrifice, made directly for the sake of production,
+     is wont to be embraced under the name of wages.
+
+     B. Wages and interest for the labor and capital utilized
+     only in one's own production, and which cannot be let. _v.
+     Mangoldt_ himself admits, that, in the long run, only
+     certain qualified labor belongs to this category.
+
+     C. Undertaker's rent (_Unternekmerrente_) depending on the
+     rarity of undertakers (men of enterprise) compared with the
+     demand. This, therefore, is not a third component part, but
+     only one which adds to the other two, _Storch_, Handbuch, I,
+     180, and _Rau_, Lehrbuch, I, Sec. 237 ff., consider the profit
+     of the undertaker as an admixture of wages and interest.
+     Professor _J. Miscszewicz_ has given expression to an
+     interesting thought in opposition to myself: that credit is
+     a fourth factor of production (natural forces, labor and
+     capital being the other three) produced by the three older
+     factors, as capital by the two oldest. The undertaker's
+     profit he then considers the product of this fourth factor,
+     corresponding to rent, interest and wages.]
+
+     [Footnote 195-5: Compare _Canard_, Principes, ch. 3; _J. B.
+     Say_, Traite, II, ch. 7, Cours pratique, V, 1-2, 7-9,
+     distinguishes three branches of income: rent, interest and
+     the profits of industry; and he divides the latter again
+     into the profits of the _savant_, the undertaker and
+     workmen, (_v. Jacob_, Grundsaetze der Nat.-Oek., Sec. 292;
+     _Lotz_, Handbuch, I, 471; _Schmalz_,
+     Staatswirthschaftslehre, I, 116; _Nebenius_, Oeff. Credit,
+     I, Aufl., 466.)]
+
+     [Footnote 195-6: I need only call attention to the influence
+     that the mere name of a general sometimes exerts over the
+     achievements and sometimes even over the composition of his
+     army (Wallenstein!); and how important it sometimes is to
+     keep his death a secret. And so the mere name of a minister
+     of finance may facilitate loans, etc.]
+
+     [Footnote 195-7: It is sufficient to mention the different
+     positions occupied by the shareholders and preferred
+     creditors of a joint-stock company.]
+
+     [Footnote 195-8: Compare _von Thuenen's_ Isolirter Statt, II,
+     80 ff., and his Life, 1868, 96. _Meister muss sich immer
+     plagen!_ (_Schiller._) See a long catalogue of books on the
+     position of the undertaker in the principal different
+     branches of industry in _Steinlein_, Handbuch der
+     Volkswirthschaftslehre, I, 445 ff.]
+
+     [Footnote 195-9: _Tantiemes_ occupy a middle place between
+     wages and the undertaker's profit; dividends a middle place
+     between undertaker's profit and the interest of capital. On
+     this is based _Rodbertus's_ view, that an increase of joint
+     stock companies raises _ceteris paribus_ the rate of
+     interest, and an increase of productive associations the
+     rate of wages, for the reason that in each instance, there
+     is some admixture of "undertaker's profit," or reward of
+     enterprise.]
+
+
+SECTION CXCVI.
+
+UNDERTAKER'S PROFIT.--CIRCUMSTANCES ON WHICH IT DEPENDS.
+
+As the wages or reward of labor, in all instances, depends on the
+circumstances mentioned in Sec. 167 ff., so, also does the reward of
+enterprise; in other words, the undertaker's profit or wages. It
+depends, therefore:
+
+A. On the rarity of the personal qualities required in a business, which
+qualities may be divided into technical and ethical qualities. Among the
+latter are, especially, the capacity to inspire capitalists with
+confidence and workmen with love for their task; the administrative
+talent to systematize a great whole made up of men and to order it
+properly, to keep it together by sternness of discipline in which
+pedantry has no part, and by economy with no admixture of avarice; and
+frequently endurance and even presence of mind. These ethical,
+statesmanlike qualities are, take them all in all, a more indispensable
+condition of high undertaker's profit than the technical are.[196-1]
+
+B. On the risk of the undertaking in which not only one's property, but
+one's reputation, may be lost.[196-2]
+
+C. As to the disagreeableness of the undertaking or enterprise, we must
+take into especial consideration the disinclination of capitalists in
+general to assume the care and trouble of concerning themselves directly
+with the employment of their capital. (Sec. 183.) The undertaker's profit
+is, besides, lower in proportion as he needs to care less for the
+profitable application of the different sources of production, and for
+their preservation. Hence it is, in general, higher for the direction of
+circulating than of fixed capital; in speculative trade and in wholesale
+trade which extends to the whole world, than in retail trade and merely
+local business.[196-3]
+
+It has, indeed, been remarked, that the undertaker's profit is, as a
+rule, proportioned to the capital employed.[196-4] This may be true in
+most cases, but only as the accidental compromise between opposing
+forces. It is evident that the greater the enterprise is, the greater
+may be the surplus over and above the compensation stipulated for in
+advance of all the cooperating productive forces, and not only
+absolutely but also relatively. We need only call to mind the successful
+results attending the greater division of labor (Sec. 66) and the greater
+division of use (_Gebrauchstheilung_) (Sec. 207); the greater facility of
+using remains in production on a large scale, and the fact that all
+purchases, and all obtaining of capital are made, when the items are
+large, at cheaper rates, because of the more convenient conducting of
+the business.
+
+This is true up to the point where the magnitude of the whole becomes so
+great as to render the conducting of it difficult. Considered even
+subjectively, the great undertaker, whose name and responsibility keep a
+great many productive forces together, may demand a higher reward,
+because there are so few persons competent to do the same. On the other
+hand, it cannot be denied that a support in keeping with his position
+may be called the amount of the cost of production of the undertaker's
+labor. If this cost is once fixed by custom, it will, of course, be
+relatively high in those branches of business which permit only of the
+employment of a small capital.[196-5]
+
+In the higher stages of civilization, the undertaker's profit has, like
+the rate of interest, a tendency to decline. This decline is, indeed, in
+part, only an apparent one, caused by the decreased risk and the smaller
+indemnity-premium. But it is, in part, a real one, produced by the
+increased competition of undertakers.[196-6] The more intelligent
+landowners and workmen become, the more readily do they acquire the
+capacity and desire to use the productive forces peculiar to them in
+undertakings of their own; and the number of retired persons who live
+from their rents grows smaller with the decline of the rate of interest.
+The strong competition of undertakers now leads to degeneration, and
+undertakings or enterprises become usual in which the gains or losses
+are subjective, and are destitute of all politico-economical
+productiveness; for instance, the purchase of growing fruits, and
+businesses carried on in "margins," or differences. It is self-evident
+that the circumstances which retard the rate of interest, or turn it
+retrograde, would have a similar effect on the undertaker's profit. (Sec.
+186.) On the whole, a rapidly growing people meet with great gains and
+losses, but the preponderance is in favor of the former. A stationary
+people are wont to become more and more careful and cautious. A
+declining people underestimate the chances of loss, although in their
+case they tend more and more to preponderate over the chances of gain.
+(_v. Mangoldt._)
+
+     [Footnote 196-1: Thus _Arkwright_, by his talent for
+     organization principally, attained to royal wealth, while
+     _Hargreaves_, a greater inventive genius, from a technic
+     point of view, had to bear all the hardships of extreme
+     poverty.]
+
+     [Footnote 196-2: An experienced Frenchman, _Godard_,
+     estimates that of 100 industrial enterprises attempted or
+     begun, 20 fail altogether before they have so much as taken
+     root; that from 50 to 60 vegetate for a time in continual
+     danger of failing altogether, and that, at the furthest, 10
+     succeed well, but scarcely with an enduring success.
+     (Enquete commerciale de 1834, II, 233.)]
+
+     [Footnote 196-3: Thus _Ganilh_, Theorie de l'Economie
+     politique I, p. 145, was of the opinion that in France's
+     foreign trade the profit was only 20, and in its internal
+     trade, scarcely 10 per cent. of the value put in
+     circulation.]
+
+     [Footnote 196-4: _Hermann_ loc. cit. 208.]
+
+     [Footnote 196-5: According to _Sinclair_, Grundgesetze des
+     Ackerbaues, 1821, the profit on capital of English farmers
+     was wont to be from 10 to 18 per cent. Only in very
+     remarkable cases, by persons in very favorable
+     circumstances, was from 15 to 20 per cent. earned; that is,
+     on the whole, less than in commerce and industry. In the
+     case of farmers of meadow land, 15 per cent. and even more
+     was not unusual; because there is a need of less outlay
+     here, but more mercantile speculation, especially in the
+     fattening of live stock.
+
+     At the end of the last century English farmers expected 10
+     per cent. profit on their capital. (_A. Young_, View of the
+     Agriculture of Suffolk, 1797, 25.) And so _Senior_ is of
+     opinion that, in the England of to-day, industrial
+     enterprises of L100,000 yield a profit of less than 10 per
+     cent. a year; those of L40,000, at least 12-1/2 per cent.;
+     those of from L10,000 to L20,000, 15 per cent.; smaller ones
+     20 per cent. and even more. He makes mention of fruit
+     hucksters who earned over 20 per cent. a day; that is, over
+     7,000 per cent. a year! (Outlines, 203 seq.) In Manchester,
+     manufacturers, according to the same authority, turned over
+     their capital twice a year at 5 per cent.; retail dealers,
+     three times a year at 3-1/2 per cent. (Ibid, 143.)
+     _Torrens_, The Budget (1844), 108, designates 7 per cent. as
+     the minimum profit which would induce an English capitalist
+     to engage in an enterprise of his own. According to _v.
+     Viebahn_, Statistik des Regierungsbezirks Duesseldorf, 836,
+     I, 180, the undertaker's profit, i. e., the surplus money of
+     the value of the manufactured articles, after deduction made
+     of the raw material and wages, in the Berg country, amounted
+     to, in 81 iron factories, 146,400 thalers; in 6 cotton
+     factories, to 21,200 thalers; in 15 cloth factories, to
+     14,725 thalers; in 4 worsted factories, to 1,700 thalers; in
+     4 brush factories, to 800 thalers; in 2 tobacco factories to
+     10,220 thalers; in 2 paper factories, to 7,400 thalers; on
+     an average, 1,924 thalers; although many undertakers earned
+     only from 200 to 400 thalers, and some few from 5,000 to
+     10,000 thalers.]
+
+     [Footnote 196-6: This is, of course somewhat oppressive to
+     many individuals, and hence we find that in those countries
+     which are unquestionably making great advances in
+     civilization, there are so many complaints of alleged
+     growing impoverishment. Compare _Sam. Fortrey_, England's
+     Interest and Improvement, 1663; _R. Coke_, A Treatise
+     wherein is demonstrated that the Church and State of England
+     are in equal danger with the Trade of it, 1671. Britania
+     languens, showing the Grounds and Reasons of the Increase
+     and Decay of Land, etc., 1680. And per contra, England's
+     great Happiness, wherein is demonstrated that a great Part
+     of our Complaints are causeless, 1677. Analogous claims
+     might be shown to exist in Germany by a collection of almost
+     any number of opinions advanced during the last thirty
+     years.]
+
+
+SECTION CXCVI (_a._).
+
+UNDERTAKER'S PROFIT.--HAVING THE "LEAD."
+
+The undertaker's profit is that branch of the national income in which
+the greater number of new fortunes are made. If a landowner has a large
+income, he generally considers himself obliged to make a correspondingly
+large outlay, one in keeping with his position; and workmen who are not
+undertakers themselves seldom have the means to make large savings.
+Besides, undertakers stand between the purchasers of their products and
+the lessors of the productive forces used by them in the peculiarly
+favorable situation which I may describe by the expression: having, as
+they say in card-playing, "the lead."[196a-1] When, in the struggle for
+prices, one party occupies a position which enables him to observe every
+change of circumstance much sooner than his opponent, the latter may
+always suffer from the effects of erroneous prices. If, for instance,
+the productiveness of business increases, even without any personal
+merit of the individual undertakers themselves, it will always be some
+time before the decline in the price of commodities and the rise in the
+rate of interest take place, as a result of the increased competition of
+undertakers, consequent upon the extraordinary rate of the undertaker's
+profit. It is difficult, and even impossible in most instances for the
+proprietors of the productive forces which they have rented out, to
+immediately estimate accurately the profit made by undertakers. On the
+other hand, the least enhancement of the price of the forces of
+production is immediately felt by the undertakers, and causes them to
+raise their prices. They just as quickly observe a decline of the prices
+of the commodities, and know how to make others bear it by lowering
+wages and the rate of interest.[196a-2] It should not be forgotten that
+the persons most expert, far-seeing, active and expeditious in things
+economic, belong to the undertaking class.[196a-3] [196a-4]
+
+     [Footnote 196a-1: The same principle is effective in
+     intermediate commerce, and in the intervention of bankers
+     between government and state creditors.]
+
+     [Footnote 196a-2: This is much less the case in rents, for
+     the reason that contracts here are made for a much longer
+     term. Hence, here the farmer has as much to fear as to hope
+     from a change of circumstances. Hence, too, we meet with a
+     farmer who has grown rich much more seldom than with a
+     manufacturer or a merchant.]
+
+     [Footnote 196a-3: If an undertaker can cede his higher
+     reward to another and guaranty its continuance, the
+     circumstances which enable him to do this assume the nature
+     of fixed capital; for instance, the trade or _clientele_
+     secured by custom or privilege. If the undertaker has not
+     the power to dispose of it in this way, the increased profit
+     either disappears with his retirement from the business or
+     falls to the owner of the capital employed, and still more
+     to the land owner. Thus, for instance, how frequently it has
+     happened that a store, which has been largely resorted to by
+     the public, drawn thither by the business tact of the
+     lessee, has afterwards been rented by the owner at a higher
+     rent! (_Hermann_, loc. cit. 210.)]
+
+     [Footnote 196a-4: _Lassalle's_ socialistic attacks on
+     Political Economy have been directed mainly against the
+     undertaker's profit or reward. Compare the work
+     "Bastiat-Schulze von Delitzsch, der oekonom. Julian oder
+     Kapital und Arbeit," 1863. By means of state credit, he
+     would have this branch of income turned over to common
+     labor. _Duehring_ also, Kapital und Arbeit 90, declaims not
+     so much against capital as against "the absolutism of
+     undertakers." _Schaeffle_ D. Vierteljahrsschrift Nr. 106, II,
+     223, objects to this, that undertakers give value in
+     exchange to unfinished products, a great service rendered
+     even to the laboring class, who otherwise would have to
+     resign the advantages of the division of labor.
+
+     The undertaker's profit is precisely the part of the great
+     politico-economical tree from which further growth chiefly
+     takes place. To artificially arrest it, therefore, would be
+     to hasten the stationary state, and thus make general and
+     greater the pressure on workmen and capitalists, which it is
+     sought to remove locally. Hence _Roesler_, Grundsaetze, 507
+     ff., very appropriately calls the undertaker's profit the
+     premium paid by society to those who most effectually combat
+     the "law of rent." The importance of a good undertaker may
+     be clearly seen when a joint stock manufacturing company
+     pays a dividend of from 20 to 30 per cent., while one close
+     by, of the same kind, produces no profit whatever. But, at
+     the same time, the socialistic hatred of this branch of
+     income may be easily accounted for, in a time full of
+     stock-jobbing, which last never produces except a
+     pseudo-undertaker's profit.]
+
+
+
+
+CHAPTER VI.
+
+CONCLUDING REMARKS ON THE THREE BRANCHES OF INCOME.
+
+
+SECTION CXCVII.
+
+INFLUENCE OF THE BRANCHES OF INCOME ON THE PRICE OF COMMODITIES.
+
+We have seen, Sec. 106, that the cost of production of a commodity,
+considered from the point of view of individual economy, may be reduced
+to the payment for the use of the requisite productive forces rented or
+loaned to the producer. Hence every great variation in the relation of
+the three branches of income to one another must produce a corresponding
+variation in the price of commodities.[197-1] When, for instance, the
+rate of wages increases because they absorb a larger part of the
+national income, those commodities in the production of which human
+labor, directly employed, is the chief factor, must become dearer as
+compared with others. Whether this difference shall be felt principally
+by the products of nature or of capital (compare Sec. 46 seq.), depends on
+the causes which brought about the enhancement of the rate of wages.
+Thus, a large decrease of population, or emigration on a large scale,
+will usually lower rent as well as the rate of interest;[197-2] an
+extraordinary improvement made in the art of agriculture, only the
+former; and an extraordinary increase of capital, only the latter. The
+usual course of things, namely that the growth of population
+necessitates a heavier draft on the resources of the soil, and thus
+causes rents to go up, and makes labor dear, must have the effect of
+raising the price of the products of labor and of natural forces, as
+compared with the products of capital; and all the more as it causes the
+rate of interest to suffer a positive decline. The products of
+mechanical labor become relatively cheaper; and cheaper in proportion as
+the producing machinery is more durable; therefore in proportion as, in
+the price of the services it renders, mere interest preponderates over
+compensation for its wear and tear.[197-3]
+
+Let us, for a moment, leave ground-rent out of the question entirely,
+and suppose a nation's economy whose production is conducted by eleven
+undertakers employed on different commodities. Let us suppose that
+undertaker No. 1 uses machinery exclusively and employs only as many
+workmen as are strictly necessary to look after it, that undertaker No.
+2 has a somewhat larger number of workmen and a somewhat smaller amount
+of fixed capital, etc.; and that this increase in the number of workmen
+and decrease in the amount of fixed capital continues until we reach
+undertaker No. 11, who employs all his capital in the payment of wages.
+If now, the rate of wages were to rise, and the interest on capital to
+fall in the same proportion, the commodities produced by undertaker No.
+11 would rise most in price, and those of No. 1 decline most. In the
+case of undertaker No. 6, the opposing influences would probably balance
+each other, and if the producers of money belonged to this sixth class,
+it would be very easy to get a view of the whole change in the
+circumstances of production, in the money-price of the different
+commodities.[197-4]
+
+     [Footnote 197-1: Compare _Adam Smith_, I, ch. 7, fin. This
+     relative increase or decrease of one branch of income at the
+     expense or to the advantage of another, should be
+     distinguished from the absolute change of its amount which
+     does not affect the cost of production. Thus, for instance,
+     when the rent of land indeed increases, but in consequence
+     of a simultaneous improvement in agriculture, a decline in
+     the rate of interest, and an enhancement of the price of
+     wheat is avoided (Sec. 157). So, too, when individual wages
+     increase on account of the greater skill and energy of
+     labor, but the same quantity and quality of labor do not
+     become dearer (Sec. 172 seq.); and lastly, when the rate of
+     interest remaining unaltered, the receipts of capitalists
+     are increased by reason of an increase of their capital (Sec.
+     185).]
+
+     [Footnote 197-2: After the great plague in the 14th century
+     in England, when all the products of labor became dearer,
+     skins and wool fell largely in price: _Rogers_, I, Sec. 400.]
+
+     [Footnote 197-3: Anyone who carefully reads all the five
+     divisions of _Ricardo's_ first chapter will soon find that
+     this great thinker rightly understood the foregoing,
+     although the great abstractness and hypothetical nature of
+     his conclusions might easily lead the reader astray. The
+     proposition which closes the second part, and which has been
+     so frequently misunderstood by his disciples, can be
+     maintained only on the supposition that the prices of all
+     commodities hitherto have been made up of equal proportions
+     of rent, capital and wages. But think of Brussels lace and
+     South American skins!]
+
+     [Footnote 197-4: Compare _J. Mill_, Anfangsgruende der polit.
+     Oekonomie, Jacob's translation, Sec. 13 ff.; _McCulloch_,
+     Principles, III, 6. _Adam Smith_ was of opinion, that higher
+     wages enhanced the price of commodities in an arithmetical
+     ratio, a higher rate of interest in a geometrical one (I,
+     ch. 9). Similarly _Child_, Discourse of Trade, 38. This last
+     _Kraus_, Staatswirthschaft, better expresses by saying that
+     an increase in the rate of interest operates in the ratio of
+     the compounded interests.]
+
+
+SECTION CXCVIII.
+
+REMEDY IN CASE ONE FACTOR OF PRODUCTION HAS BECOME DEARER.
+
+When one of the three branches of income has grown as compared with the
+others; in other words, when the factor of production which it
+represents has become relatively dearer, it is to the interest of the
+undertaker and of the public, that it should be replaced where possible
+by another and cheaper productive force. (Sec. 47.) On this depends the
+advantageousness of _intensive_ agriculture (high farming) in every
+higher stage of civilization. There land is dear and labor cheap. Hence,
+efforts are made to get along with the least amount of land-surface, and
+this minimum of land is made more productive by a number of expedients
+in cultivation, by manuring it, by seed-corn, etc., of course also by
+the employment of journeymen laborers, oxen, etc. And since the price of
+land is intimately connected with the price of most raw material,
+remains are here saved as much as possible, often with a great deal of
+trouble.[198-1] In a lower stage of civilization, such savings would be
+considered extravagance. As land is here cheap, and capital dear, it is
+necessary to carry on the cultivation of land _extensively_; that is,
+save in capital and labor, and allow the factor nature to perform the
+most possible. The clearing up of untilled land, or the draining of
+swampy land etc., would be frequently injurious here; for it would
+require the use of a very large amount of capital to obtain land of
+comparatively little value.
+
+In large cities, it is customary to build houses high in proportion to
+the dearness of the land.[198-2] Thus, in England, where the rate of
+interest is low and wages high, labor is readily supplanted by capital.
+In countries like the East Indies or China, the reverse is the case. I
+need only call attention to the palanquins used in Asia instead of
+carriages; to the men who in South America carried ore down eighteen
+hundred steps to the smelting furnaces,[198-3] and, on the other hand,
+to the "elevators," so much in favor in England, which are used in
+factories to carry people from one story to another inside to save them
+the trouble of going up stairs.[198-4]
+
+     [Footnote 198-1: The sickle instead of the scythe; careful
+     threshing by hand, and, where the rate of interest is low,
+     threshing by machinery instead of the treading out of the
+     sheaf by oxen. Thus in Paris the scraps from restaurants and
+     soap factories are made into stearin; and the remnants in
+     shawl factories in Vienna are sent to Belgium to be used by
+     cloth manufacturers.]
+
+     [Footnote 198-2: Remarked in ancient times of Tyre, which
+     was situated on a small island, and, therefore, without the
+     possibility of horizontal extension. (_Strabo_, XVI, 757.)]
+
+     [Footnote 198-3: _Humboldt_, N. Espagne II, ch. 5, II, ch.
+     11.]
+
+     [Footnote 198-4: Thus, in England, the safety of railroad
+     trains is not secured as in Germany by a multitude of
+     watchmen, etc.; but by solid barriers, by bridges at every
+     crossing, in other words, by capital.]
+
+
+SECTION CXCIX.
+
+INFLUENCE OF FOREIGN TRADE.
+
+Foreign trade, that great means of cooperation of labor among different
+nations, affords such a remedy in a very special manner. It very
+frequently happens that the undertakers of one country, when a certain
+factor of production seems too dear at home, borrow it elsewhere. Thus,
+for instance, a country with a high rate of wages draws on another for
+labor, and one with a high rate of interest on another for
+capital.[199-1] We elsewhere consider such a course of things from the
+standpoint of the supplying country, which in this way is healed of a
+heavy plethora of some single factor of production which disturbs the
+harmony of the whole. (Secs. 187, 259, ff.). But, at the same time, the
+supplied country, considered from a purely economic point of view, reaps
+decided advantages therefrom. If, for instance, a Swiss confectioner
+returns from Saint Petersburgh to his home, after having made a fortune
+in an honest way, no one can say that Russia has grown poorer by the
+amount of that fortune. This man made his own capital; if he were to
+remain in Russia, its national economy would be richer than before his
+immigration thither. Now, it is, at least, no poorer, and has in the
+meantime had the advantage of the more skilled labor of the
+foreigner.[199-2] And, so, when a capitalist living in Germany purchases
+Hungarian land, the national income of Hungary is diminished by the
+amount of the annual rent which now goes to Germany; but it receives an
+equal amount in the interest on capital, provided the purchase was an
+honorable one and the capital given in exchange for the land honestly
+invested.[199-3] If Hungary, in general, had a superabundance of land
+but a lack of capital, the economic advantage is undoubted.[199-4]
+
+These economic rules, indeed, are applicable only to the extent that
+higher and national considerations do not in the interest of all, create
+exceptions to them. "Is not the life more than meat, and the body than
+raiment?" No rational people will allow certain services to be performed
+for them preponderantly by foreigners, even when they can be performed
+cheaper by the latter--the services of religion, of the army, of the
+state, etc. The same is true of landownership; and all the truer in
+proportion as political and legal rights of presentation and other forms
+of patronage are attached to it. Lastly, hypothecation-debts which go
+beyond certain limits, may entail the same consequences as the complete
+alienation of the land;[199-5] and Raynal may have been, under certain
+circumstances, right when he said, that to admit foreigners to subscribe
+to the national debt was equivalent to ceding a province to them.[199-6]
+It is obvious that a great power may do much in this relation that would
+be a risk to a small state.[199-7] [199-8]
+
+     [Footnote 199-1: "The transportation of productive capital
+     and industrial forces from one point where their services
+     are worse paid for, to another where they find a rich
+     reward, will not be apt to be made so long as the
+     equilibrium may be obtained [most frequently much more
+     easily] by the interchange of the products." (_Nebenius_,
+     Oeff. Credit, I, 48.) The repeal of the corn laws in England
+     certainly diminished the emigration of English capital.]
+
+     [Footnote 199-2: For an official declaration of the
+     Brazilian state in this direction, see Novara Reise.]
+
+     [Footnote 199-3: Basing himself hereon, _Petty_, Political
+     Anatomy of Ireland, 82 ff., questions the usual opinion,
+     that Ireland suffered so much from absenteeism. He says that
+     a prohibition of absenteeism carried out to its logical
+     conclusion would require every man to sit on the sod he had
+     tilled himself. _Carey_, On the Rate of Wages, 1835, 477,
+     calls English capitalists who draw interest from America,
+     absentees.]
+
+     [Footnote 199-4: The older political economists have, as a
+     rule, ignored this law, and were wont to consider every
+     payment of money to a foreign country as injurious. Thus,
+     for instance, _Culpeper_, Tract against the high Rate of
+     Usury, 1623, 1640, disapproves all loans made from foreign
+     countries, because they draw more money in interest, and in
+     repayment of the principal out of the nation, than they
+     brought into it at first; and all the more, as the loan is
+     generally procured, not in the precious metals, but in
+     foreign goods, of which there is a superabundance in the
+     home country. Similarly _Child_, Discourse of Trade, 1690,
+     79, who claims that the creditor was always fattened at the
+     expense of the debtor. Hence _v. Schroeder_, Fuerst, Schatz-
+     und Rentkammar, 141, advises that the capital borrowed in
+     foreign countries should be confiscated. Compare, also, _v.
+     Justi_, Staatswirthschaft, II, 461. And yet the very
+     simplest calculation shows, that if a man borrows $1,000 at
+     5 per cent. and makes 10, he is doing a good business with
+     the borrowed capital. This _Locke_, Considerations, 9,
+     recognizes very clearly. Compare, also, _J. B. Say_, Traite,
+     II, ch. 10, and _Hermann_, Staatsw. Unters., 365 seq.]
+
+     [Footnote 199-5: Think of the English creditors in Portugal
+     and the Genoese in Corsica (_Steuart_, Principles, II, ch.
+     29.) Considered simply from an economic standpoint, the
+     Edinburg Review, XX, 358, very clearly demonstrates that
+     England should recruit her army from Ireland, where wages
+     are so much lower than in Great Britain. But how dangerous
+     in a political sense! In 1832, one-fourth of the stock of
+     the United States Bank was in the hands of foreigners, and
+     hence its opponents nick-named it the "British Bank." By the
+     rules of the principal bank in Philadelphia, in 1836, only
+     American citizens were allowed a vote in its proceedings.
+     Similarly in the case of the Bank of France. (_M.
+     Chevalier_, Lettres sur l'Amerique du N. I, 364.) It may be
+     remarked in general, that the older political economists
+     have based correct political views on false economic
+     principles, while the more modern ignore them entirely.]
+
+     [Footnote 199-6: Compare _Montesquieu_, E. des Lois L, XXII,
+     17; _Blackstone_, Commentaries, I, 320.]
+
+     [Footnote 199-7: Thus Austria conceded, in 1854-55, a number
+     of railways to French capitalists, and always favored the
+     purchase of landed estates by small foreign princes. In the
+     latter case, Austrian influence abroad was much more
+     promoted by the measure than was foreign influence in
+     Austria.]
+
+     [Footnote 199-8: Every nationality is not worth the
+     sacrificing of the highest economic advantage or profit to
+     it. Or, would it be preferable to leave the Hottentots and
+     Caffirs, poor, barbarous and heathenish?]
+
+
+SECTION CC.
+
+INFLUENCE OF THE BRANCHES OF INCOME ON THE PRICE OF COMMODITIES.
+
+In relation to foreign trade, in the narrowest sense of the term, fears
+were formerly very frequently expressed and are sometimes even now,
+which in the last analysis are based on the assumption that one country
+might be underbid by another in all branches of commodities.[200-1] This
+is evidently absurd. Whoever wants to pay for foreign commodities can do
+it only in goods of his own. When he pays for them with money, the money
+is either the immediate product of his own husbandry (mining
+countries!), or the mediate product obtained by the previous surrender
+of products of his own. To receive from foreign countries all the
+objects which one has need of, would be to receive them as a gift.
+
+It is just as absurd to fear that the three branches of income in the
+same country's economy should be all relatively high at the same time,
+and competition with foreign countries be thus made more difficult. Rent
+and interest especially in this respect have to demean themselves in
+ways diametrically opposed to each other.[200-2] When trade is entirely
+free, every nation will engage at last in those branches of production
+which require chiefly the productive forces which are cheapest in that
+country; that is which the relatively low level of the corresponding
+branch of income recommends to individual economy and enterprise. The
+merely absolute and personal height of the three branches of income has,
+as we have said, no direct influence on the price of commodities. In
+this respect, all these may be higher in one country than in another.
+Thus, for instance, English landowners, capitalists and workmen may be
+all at the same time in a better economic condition respectively than
+Polish landowners, capitalists and workmen, when the national income of
+England stands to its area and population in general, in a much more
+favorable ratio than the Polish.[200-3]
+
+     [Footnote 200-1: Thus, _Forbonnais_, Elements du Commerce I,
+     73. _J. Moser_, Patr. Ph., I, No. 2.]
+
+     [Footnote 200-2: For a thorough refutation of the error that
+     everything is dearer in England than in France, see Journ.
+     des Econ., Mai, 1854, 295 seq. A distinguished architect
+     assured me in 1858, that a person in London could build
+     about as much for L1 as for from 6 to 7 thalers in Berlin;
+     only the aggregate expense in both countries is made up of
+     elements very different in their relative proportions.]
+
+     [Footnote 200-3: We very frequently hear that countries with
+     high wages must be outflanked in a neutral market by
+     countries with a low rate of wages. _Ricardo's_ disciples
+     reject this, because a decrease in the profit would put the
+     undertaker in a condition to bear the loss caused by the
+     high wages paid. See Report of the Select Committee on
+     Artisans and Machinery. _Senior_ ridicules such reasoning
+     very appropriately by inquiring: "Might not the loss enable
+     him to bear the loss?" Outlines, 146. And so _J. B. Say_
+     thinks that wages are always lowest when undertakers are
+     earning nothing. The truth is rather this: a country with a
+     relatively high rate of wages cannot, in a neutral market,
+     offer those commodities the chief factors required for the
+     production of which is labor; but the comparatively low rate
+     of interest or low rents, or the lowness of both found in
+     connection therewith, must fit it to produce other
+     commodities very advantageously. If, therefore, the rate of
+     wages rises, the result will be to divert production and
+     exports into other channels than those in which they have
+     hitherto flowed. The old complaint of Saxon agriculturists,
+     that there is a lack of labor in the country, is certainly
+     very surprising in a nation as thickly populated as Saxony.
+     But the remedy proposed by the most experienced
+     practitioners consists chiefly in a higher rate of wages to
+     enable workmen to care for themselves in old age, the
+     introduction of the piece-work system and an increase of
+     agricultural machines. But it seems to me, that the whole
+     situation there points to the advantage of in part limiting
+     the large farming hitherto practiced to live-stock raising
+     and other branches in which labor may be spared, and in part
+     of replacing it, by small farming of plants which are
+     objects of trade.
+
+     Many points belonging to this subject have been very well
+     discussed by _J. Tucker_, in his refutation of _Hume's_
+     theory on the final and inevitable superiority of poor
+     countries over rich ones in industrial matters. (Four Tracts
+     on political and commercial Subjects, 1774, No. 1; _L.
+     Lauderdale_, Inquiry, 206.)]
+
+
+SECTION CCI.
+
+HARMONY OF THE THREE BRANCHES OF INCOME.--INDIVIDUAL DIFFERENCE IN THEM.
+
+As national-economical civilization advances, the personal difference of
+the three branches of income is wont to become more and more sharply
+defined.[201-1] The struggle between landowners, farmers and workmen,
+which Ricardo necessarily assumed, did not exist at all in the middle
+ages; since landowners and farmers were then usually one and the same
+person, and since workmen, either as slaves or peasants, were protected
+against competition properly so called. And so in the industry of that
+time, based on the trades or on domestic industry.[201-2] [201-3]
+
+When, later, the division of labor increases, all the differences of
+men's aptitudes are turned to more advantage, and are more fully
+developed. In the same proportion that a working class is developed, the
+members of which are nothing but workmen, and can scarcely hope to
+possess capital or land,[201-4] there grows up, side by side with it, a
+class of mere capitalists, who come to obtain an ever-increasing
+importance.
+
+Considered from a purely economic point of view, this transition has its
+great advantages. How much must the existence of a special class of
+capitalists facilitate the concentration of capital and the consequent
+promotion of production, as well as its (capital's) price-leveling
+influx and outflow! Even "idle" capitalists have this of good, that,
+without them, no competent man, destitute of means could engage in any
+independent enterprise. When, indeed, the gulf between these two classes
+passes certain bounds, it may, politically and socially, become a great
+evil. (Sec. 63.)[201-5]
+
+     [Footnote 201-1: Among nations in their decline, rent and
+     interest fall into one possession again, because capitalists
+     here are wont to buy the land. (_Roscher_, Nationaloekonomik
+     des Ackerbaues, Sec. 140 ff.)]
+
+     [Footnote 201-2: Related to this peculiarity of the middle
+     ages is the fact that the canon law looked with disfavor on
+     the personal separation of the three factors of production.
+     So also in the prohibition of the _Weddeschat_ referred to Sec.
+     161, instead of rent-purchase (_Rentekauf_), also by
+     extending the idea of partnership to a number of
+     transactions which are only forms of loan. (_Endemann_ in
+     _Hildebrand's_ Jahrb., 1863, 176 ff.) Antiquity also, with
+     the independence of its oikos, with its slavery, etc., had
+     not developed the difference between the three branches of
+     industry to any extent. _Rodbertus_, in _Hildebrand's_
+     Jahrbb., 1865, I, 343.]
+
+     [Footnote 201-3: If older writers, like _Steuart_, etc.,
+     speak so little of capital, labor and rent, and so much of
+     city and country, it is not on account of ignorance simply.
+     The contrast between the latter was then much more important
+     than to-day, and that between the former much less
+     developed. When, indeed, _Colton_, Public Economy of the
+     United States, 1848, 155 ff., claims that because in America
+     the three branches of income do not exist in so separated a
+     condition as in Europe, therefore European Political Economy
+     and its theories are not applicable to America, he forgets
+     that science should not be simply a description or
+     impression made of the reality, but an analysis of it.]
+
+     [Footnote 201-4: It is a very characteristic fact that, in
+     our days, when workmen are spoken of, it is generally day
+     laborers and tradesmen that are understood. In Prussia, in
+     1804, 17.8 per cent. of the population earned their living
+     by letting out their labor; in 1846, 22.8 per cent. as
+     day-laborers, servants, journeymen, tradesmen and factory
+     hands. (_Dieterici._)]
+
+     [Footnote 201-5: _Ricardo_, Principles, ch. 4, recognizes
+     the bright side as well as _Sismondi_, N. P., I, 268, or
+     _Buret_, De la Misere des Classes laborieuses en Angleterre
+     et en France, 1841, its dark side. _Sismondi_ thinks that
+     land and the capital employed in its cultivation are found
+     to the greatest disadvantage in the hands of the same
+     person. The existence of a thrifty peasant class (also of a
+     class of tradesmen) is one of the best means to prevent the
+     too wide separation of the three branches of income.]
+
+
+SECTION CCII.
+
+HARMONY OF THE THREE BRANCHES OF INCOME.--NECESSITY OF THE FEELING OF A
+COMMON INTEREST.
+
+Every class corresponding to a branch of the national income must live
+with the consciousness that its interests coincide with the economic
+interests of the whole nation. Whenever the entire national income
+increases, each branch of it may increase without any injury to the
+others, and, as a rule, does really increase.[202-1] But it is possible
+that the land owning class may be specially dependent on the prosperity
+of the whole people. How easy it is for workmen to emigrate; and how
+much easier yet for capital! England, to-day, can scarcely carry on a
+great war, in which it would not, at least at the beginning, have to
+fight English capital.[202-2] Where the treasure is, the heart is also!
+The land alone is immovable. It alone cannot be withdrawn from the
+pressure of taxation or from the distress of war. It alone cannot flee
+into foreign parts.[202-3] [202-4] At the same time, it cannot be denied
+that the possibility of being able to carry one's fortune out of a
+country in one's pocketbook and to be able to procure there with one's
+money the same conveniences, customs, etc., to which one was accustomed
+at home, is, under certain circumstances, an important element of
+political and religious freedom. Moreover, the bright side and the dark
+of every class of owners, especially the dread of all unnecessary and
+also of all necessary change, must be common to rent and interest.
+Hence, where there is a marked and well-defined separation of the
+branches of income, it will be always considered a difficult but
+unavoidable problem, how to enable mere labor to take an active part in
+the affairs of the state.[202-5]
+
+In times when calm prevails (not, however, in transition-crises such as
+are referred to in Sec. 24), there is a public opinion concerning merit and
+reward, we might say a public conscience, by which a definite relation
+of the three branches of income to one another is declared equitable.
+Every "fair-minded man" feels satisfied when this relation is realized,
+and this feeling of satisfaction is one of the principal conditions
+precedent to the prosperity of production; inasmuch as upon it depends
+the participation (_Theilnahme_) of all owners of funds and forces.
+Every deviation from this relation or proportion is, of course, a
+misfortune,[202-6] but never so great as when it takes place at the
+expense of the wages of labor. It should never be forgotten that rent is
+an appropriation of the gifts of nature, and that interest is a further
+fruit obtained by frugality from older labor already remunerated.
+Besides, the rate of wages when high, generally adds to the efficiency
+of labor, which cannot be claimed for interest or rent.[202-7] The best
+means to preserve the harmony of the three branches of income is,
+however, universal activity. "Rich or poor, strong or weak, the idler is
+a knave." (_J. J. Rousseau._)
+
+     [Footnote 202-1: The contrast between _Adam Smith_, at the
+     end of the first book, and _Ricardo_, ch. 24, in regard to
+     this point, is very characteristic of the times of those two
+     authors. According to _Smith_, the private interests of the
+     landowners and laborers run entirely parallel; only both
+     classes are easily deceived as to their own interests.
+     Capitalists understand their own interest very well, and
+     represent it with great energy; but their interest is in
+     opposition to the common good, in so far as their profit
+     among a poor and declining people is higher than among a
+     rich and flourishing one. _Ricardo_, on the other hand,
+     thinks that the interest of the landowners is opposed to
+     that of all others for the reason that they desire that the
+     cost of the production of wheat etc. should be as high as
+     possible.
+
+     Related to this is the fact that, in _Adam Smith's_ time,
+     the new theory of rent remained almost unnoticed, but that
+     after 1815, it became rapidly popular. In a similar way, the
+     socialists of the present time are wont to charge the
+     undertaking class with opposing their own interests to those
+     of the whole people, meaning by the whole the majority. (Sec.
+     196 a.)]
+
+     [Footnote 202-2: Towards the end of the 14th century the
+     great Flemish merchants always sided with the absolutism of
+     France in opposition to their own _Artevelde_.]
+
+     [Footnote 202-3: Hence it is, that in so many constitutions,
+     charters of cities, etc., the exercise of the higher rights
+     of citizenship is conditioned by the possession of a certain
+     quantity of land, and that landownership is considered as a
+     species of public function.
+
+     I read, a short time ago, the life of a North-German
+     noblemen who, in 1813, had fought bravely against the
+     French, "although he was a man of large estates, and the
+     enemy might therefore very easily have laid hands on them."
+     If this "although" of his eulogist expressed the actual
+     feeling of large landed proprietors, a great many old
+     political institutions would have lost all foundation.
+
+     _Ad. Mueller_ was of opinion that the rights of
+     primogeniture, etc., might be an obstacle in the way of the
+     development of the net income of a nation's economy; but
+     that they gave to the state and to the national life the
+     warlike tone so necessary to them, etc. (Elemente, II, 90.)]
+
+     [Footnote 202-4: "The Roman capitalists on whom Pompey
+     counted, left him in the lurch at the moment of danger,
+     because Caesar destroyed only the constitution, but respected
+     their business relations." (_K. W. Nitsch._)]
+
+     [Footnote 202-5: _Kosegarten_, Nat. Oek., 186, thinks that,
+     on account of the struggle between the labor interest and
+     the interest of capitalists, in our times, the "fourth
+     estate" is not as well represented by persons belonging to
+     the propertied classes as the constitutionalist party
+     thinks. And in fact, _Jarke_, Principienfragen, 1854, 197,
+     would have it represented by the government, in order to
+     prevent the struggle between rich and poor. See
+     _Cherbuliez_, Riche ou Pauvre, p. 242 seq.]
+
+     [Footnote 202-6: _A. Walker_ shows, in a very happy manner,
+     how no misfortune, however great, whether it come from
+     heaven or from earth, in the shape of pestilence, drought,
+     flood or oppressive taxation, so rapidly and hopelessly
+     ruins a nation's economy as when the harmony which should
+     exist between capital and labor is disturbed by foul play or
+     legal frauds between labor or capital and their reward. (Sc.
+     of Wealth, 66.)]
+
+     [Footnote 202-7: Compare _Lotz_, Revision, III, 322 ff.,
+     327, 334 ff. Handbuch, I, 511 ff. _Lafitte_, Sur la
+     Reduction de la Rente, 56. _Fuoco_ exaggerates this into the
+     principle: _che la distribuzione, e non la produzione, sia
+     la prima e principal operazione in economia_. (Saggi
+     economici, II, p. 44.)]
+
+
+
+
+CHAPTER VII.
+
+DISTRIBUTION OF NATIONAL INCOME.
+
+
+SECTION CCIII.
+
+EFFECT OF AN EQUAL DIVISION OF THE NATIONAL INCOME.
+
+The best distribution of the national income among a people is that
+which enables them to enjoy the greatest amount and variety of real
+goods, and permanently to produce real goods in an increasing quantity
+and variety.
+
+If the income of a people were divided equally among all, each one would
+indeed, be, to a very great extent, independent of all others. But then,
+no one would care to devote himself to the coarser and less agreeable
+occupations, and these would be either entirely neglected, or people
+would have to take turns in engaging in them.[203-1] (Sec. 9.) And thus
+would disappear one of the chief advantages of the division of labor,
+viz: that the higher orders of talent are devoted to the higher orders
+of labor. Besides, it is very doubtful, whether, under such
+circumstances, there would still be any solvent (_zahlungsfaehige_)
+demand for the achievements of art.
+
+Nor would the saving of capital prosper, where such equality prevailed.
+Most men consider the average outlay of their equals as an unavoidable
+want, and save only to the extent that they possess more than others of
+their class. If, therefore, every one had an equal income, no one would
+consider himself in a condition to save.[203-2] The same consideration
+would deter most men from every economic venture, and yet no great
+progress is possible where no venture is made.[203-3] [203-4]
+
+     [Footnote 203-1: According to _Schaeffle_, System, II, 379
+     ff., "the distribution of the social return of production
+     which conduces to the attainment of the highest measure of
+     civilization in the moral association of men and in all the
+     grades of that association, and thereby to the satisfaction
+     of all true human wants in the highest degree." Thus only
+     can a satisfactory line of demarkation be drawn between the
+     profit of capital and the wages of labor (384).]
+
+     [Footnote 203-2: See _Aristoph._, Plut., 508 ff. Not taken
+     into consideration sufficiently by _Benjamin Franklin_, in
+     his eulogy of the equality of property: The internal State
+     of America, 1784.]
+
+     [Footnote 203-3: The essential characteristic of the desert
+     is, according to _Ritter_, Erdkunde, I, 1019 seq., its
+     uniformity. No break in the horizontal plain, and hence no
+     condensation of atmospheric vapor into bodies of water of
+     any considerable size. The composition of the soil is
+     everywhere the same; nothing but masses of silex and salt,
+     hard and sharp. Lastly, extreme mobility of the surface,
+     which undulates with every wind, so that no plant can take
+     root in it. Nearly every feature in this picture finds its
+     analogon in the extreme political and economic equality of
+     men.]
+
+     [Footnote 203-4: _Les superiorites, qui ne sont dues qu'a,
+     un usage plus intelligent et mieux regle de nos facultes
+     naturelles, loin d'etre un mal, sont un veritable bien.
+     C'est dans la plus grande prosperite, qui accompagne un plus
+     grand et plus heureux effort, qu'est le principe de tout
+     developpement._ (_Dunoyer_, Liberte du Travail, IV, 9, 10.)
+     But, indeed, the rich man should never forget that society
+     "inasmuch as it permits the concentration of wealth in his
+     hands, expects that he will employ it to better advantage
+     than the mass of mankind would if that same wealth were
+     equally divided among them." (_Brentano._)]
+
+
+SECTION CCIV.
+
+DISTRIBUTION OF NATIONAL INCOME.--MONEYED ARISTOCRACIES AND PAUPERISM.
+
+The extreme opposite of this, when the middle class disappears and the
+whole nation falls into a few over-rich men and numberless proletarians,
+we call the oligarchy of money, with pauperism as the reverse of the
+medal. Such a social condition has all the hardship of an aristocracy
+without its palliatives. As it is, as a rule, the offspring of a
+degenerated democracy,[204-1] it cannot in form depart too widely from
+the principle of equality. Only get rich, they cry to the famishing
+poor; the law puts no obstacle in your way, and you shall immediately
+share our position.[204-2] Here the uniformity and centralization of the
+state, which are an abomination in the eyes of genuine aristocracy, are
+carried to the extreme. Capital takes the place of men, and is valued
+more than men. All life is made to depend on the state, that its
+masters, the great money-men, may control it as they will. The falling
+away of all restrictions on trade, and of all uncommercial
+considerations relating to persons and circumstances, gives full play to
+capital, and speculators seek to win all that can be won. And, indeed,
+all colossal fortunes are generally made at the expense of others,
+either with the assistance of the state-power or by speculation in the
+fluctuations of values.[204-3] The dependence of proletarians on others
+is here all the greater, because from a complete absence of capital and
+land, so far as they are concerned, they are compelled, uninterruptedly,
+to carry their entire labor-force to market; and also because the supply
+of labor is made in masses embracing a large number of individuals,
+while the demand for labor lies in the hands of very few, and may be
+very readily and systematically concentrated.[204-4] So great and
+one-sided a dependence is, for men too far removed from one another for
+real mutual love, doubtless one of the greatest of moral temptations. It
+is as easy a matter for the hopelessly poor to hate the law, as it is
+for the over-rich to despise it.[204-5] Under such circumstances, the
+contagious power of communism, the dangers of which to order and freedom
+we have treated of in Sec. So, is great. There is a dreadful lesson in the
+fact of history, that six individuals owned one-half of the province of
+Africa, _when Nero had them put to death_![204-6] Externally, a moneyed
+oligarchy will always be a weak state. The great majority who have
+nothing to lose take little interest in the perpetuation of its
+political independence. They rather rejoice at the downfall of their
+oppressors hitherto, and are cheered by the hope of obtaining a part of
+the general plunder.[204-7] The rich, too, separated from the neglected
+and propertyless masses of the nation, and rightly distrustful of them,
+begin to forget their nationality, and to balance its advantages against
+the sacrifices necessary to preserve it. But, a merely materialistic
+calculation leads doubtless to the conclusion, that universal empire is
+the most rational form of the state. The world-sovereignty of Rome was,
+by no circumstance more promoted than by the struggles between the rich
+and the poor, which devastated the _orbis terrarum_, and in which the
+Romans generally sided with the property classes.[204-8] [204-9] [204-10]
+[204-11] However, the worst horrors of the contrast here described can
+occur only in slave-countries. Compare _Roscher_, Nationaloekonomik des
+Ackerbaues, Sec. 141.
+
+     [Footnote 204-1: The more the lower classes degenerate into
+     the rabble, and the more the national sovereignty comes into
+     the hands of this rabble, the easier will it become for the
+     rich to buy up the State.]
+
+     [Footnote 204-2: In the middle stages of the nation's
+     economy, such as are described in Secs. 62, 66, 90, 207, in
+     which even the relative advantages of industry on a large
+     scale over industry on a small scale, are not much developed
+     the making political rights dependent on the possession of a
+     certain amount of property is certainly a means of promoting
+     equality. Hence, therefore, a reconciliation between the
+     differences of class created by birth, may be effected for a
+     long time here.]
+
+     [Footnote 204-3: _Hermann_, Staatsw. Untersuchungen, II,
+     Aufl. 136.]
+
+     [Footnote 204-4: _Necker_, Legislation et Commerce des
+     Grains, 1775,1. passim. Compare _Bacon_, Serm fideles, 15,
+     29, 34, 39.]
+
+     [Footnote 204-5: _Schiller's_ terrible words:
+
+          "_Etwas muss er sein eigen nennen,
+            Oder der Mensch wird morden und brennen._"
+
+     --i. e., "Something must he call his own, or man will murder
+     and burn."
+
+     It is one of _J. G. Fichte's_ fundamental thoughts that as
+     all property is based on mutual disclaimer, the person who
+     has nothing of his own, has disclaimed nothing, and
+     therefore reserves his original right to everything.
+     (Geschlossener Handelstaat., Werke, III, 400, 445.)]
+
+     [Footnote 204-6: _Plin._, H. N., XVIII, 7.]
+
+     [Footnote 204-7: How frequently this circumstance turned to
+     the advantage of the Germans during the migration of
+     nations! Compare _Salvian_, De Gubern, Dei, VII. Very
+     remarkable answer given by a Roman taken prisoner by Attila,
+     why it must be more agreeable to live among the Huns than in
+     the over-civilized Roman Empire: Prisci legatio, in
+     _Niebuhr_, Corp. histor. Byzant., I, 191 ff. And thus the
+     conquest of Constantinople by the crusaders, took place amid
+     the jubilation of the populace and of the country people:
+     _Nicetus_, Chron. Hist. Urbs capta, Sec. 11, 340. This law of
+     nature becomes most apparent when one compares the
+     preponderating power of Rome against Carthage, with its
+     weakness against the Cimbri and Mithradates. May not
+     Hannibal have been to his own country a phenomenon like that
+     which Caesar was afterwards to Rome? A healthy and united
+     Carthage he certainly could have held against Italy.]
+
+     [Footnote 204-8: On the tendencies of the later times of the
+     Jewish monarchy toward an oligarchy of money, see _Amos_, 2,
+     6 seq.; 6 1 ff.; 8, 5 ff.; _Micha_, 2; 2 _Isaias_, 5, 8 seq.
+     Compare _Nehem._ 5. While Exodus, 30 and 38, mentions over
+     663,000 taxable men, the ten tribes comprising the kingdom
+     of Israel had only 60,000. XII Kings, 15, 19. _Ewald_,
+     Geschichte des Volkes Israel, II, 2, 320.]
+
+     [Footnote 204-9: The spirit of the Grecian moneyed oligarchy
+     is best revealed by _Plato_, De Republ., VIII, and
+     _Aristotle_, Polit., III, VI, passim, the first of whom
+     considers the contrast between rich and poor as in itself
+     demoralizing (IV, 422). All that can be called by the name
+     of tradition, the political faith of a people, and the
+     national feeling of right, had, in the Grecian world, been
+     transformed into mere reasoning and concerned itself, with
+     frightful exclusiveness, to the contrast existing between
+     rich and poor. Compare _Aristot._, Pol., II, 4, 1, with
+     _Droysen_, Gesch. des Hellenismus, II, 496 etc., and the
+     citations from _Menander_ in _Stob._, Serm., LXXXIX, 503, in
+     which gold and silver are proclaimed almighty. It is a
+     remarkable proof of the _omne venalia esse_ in Greece that
+     _Thucydides_ (II, 65) lauds even _Pericles_, especially for
+     his incorruptibility. _Demosthenes_ says of his
+     contemporaries, that it excited envy when any one was
+     bribed, laughter when he confessed it; that he who was
+     convicted of it (bribery) was pardoned, and he who blamed
+     it, hated. (Phil., II, 121.) Compare the list in _Demosth._,
+     Pro. Cor., 324; _Pausan_, III, 10. In Athens, on the
+     occasion of the census-constitution imposed forcibly on the
+     state by _Antipater_, that in a population of 21,000
+     citizens, only 9,000 had a property worth 2,000 drachmas or
+     more, that is, enough for a man to live on in the most
+     niggardly way, on the highest interest it would yield. If,
+     in addition to this, account be taken of the large number of
+     slaves, the small number of the property class is all the
+     more surprising, inasmuch as Lycurgus' financial
+     administration bears evidence that the people were in a
+     flourishing and comfortable condition; that afterwards,
+     peace for the most part prevailed, and that Alexander's
+     victories enabled Grecian commerce to make large gains.
+     Compare _Boeckh_, Staatsh. IV, 3, 9.
+
+     In Sparta, the governing class finally numbered only 700
+     families, 100 of which owned all the land, and 600 of which
+     were, therefore, only noble proletarians. It is well known
+     that the social attempts at reform by Agis and Kleomenes
+     only precipitated the downfall of the state. (_Plutarch_,
+     Agis and Kleomenes.) _Aratos_ owed a great part of the
+     consideration in which he was held to the reputation which
+     he obtained by protecting the property of the Sicyonian
+     exiles (_Thirlwall_, History of Greece, VIII, 167), while on
+     the other hand, men like _Agathocles and Nabis_ supported
+     their faction by persecution of the rich, new debtor-laws
+     and new division of land. (_Polyb._, XIII, 6, XVI, 13, XVII,
+     17, XXVI, 2; _Livy_, XXXII, 38, 40, XXXIV, 31, XXXVIII, 34;
+     _Plutarch_, Cleom, 20.) _Livy_ expressly says that all the
+     _optimates_ were in favor of the Romans, and that the
+     multitude wanted _novare omnia_ (XXXV, 34). On the frightful
+     struggle between these opposite parties, on the revolutions
+     and counter revolutions, see also _Polyb._, XIII, 1, 2;
+     XVIII, 36 ff., XXX, 14; XXII, 21; XXXVIII, 2, 3; _Diodor._,
+     XIX, 6, 9; _Exc._, 587, 623; _Livy_, XLI, 25, XLII, 5;
+     Pausan, VII, 14. In Boeotia, no one was for 25 years,
+     chosen by the people for the higher offices, from whom they
+     did not expect a suspension of the administration of justice
+     in the matter of crimes and debts, as well as the spending
+     of the national treasure. (_Polyb._, XX, 14, 5, 6.) The
+     events at Corinth, before its conquest by the Romans,
+     forcibly remind one of the Paris Commune of 1871. This
+     decline had, as usual, begun earliest in the colonies: thus,
+     in Sicily, even in _Thucyd._, V, 4. Milesian struggle off
+     the ploutis and cheiromacha in _Plutarch_, Qu. Gr., 32;
+     _Athen._, XII, 524.]
+
+     [Footnote 204-10: The disappearance of the middle class in
+     Rome, between the second and third Punic war, was brought
+     about chiefly by the great foreign conquests made by it. An
+     idea of the wealth which the governors of the provinces
+     might extort may be formed from this among other facts, that
+     Cicero originally demanded against Verres a fine of
+     5,000,000 thalers. (_Cic._, in Verrem Div., 5.) Verres is
+     related to have said, that he would be satisfied if he could
+     retain the first year's booty; that during the second, he
+     collected for his defenders; and during the third, for his
+     judges! (_Cic._, in Verr., I, 14.) Even _Cicero_ became
+     richer within the space of one year, in Cilicia, where it
+     was well known he was not oppressive, by 110,000 thalers,
+     which sum does not include numerous presents, pictures, etc.
+     (_Drumann_, Gesch. Roms., VI, 384.) On the frightful
+     oppression and extortion practised by Brutus (!) in Asia,
+     see _Cicero_, ad. Att, V, 21; VI, 1. _Sallust_, in his
+     Jugurtha, has shown how such men waged war, and to what
+     extremes their well-deserved want might push them in his
+     Catiline. _Patricium scelus!_ Most of the senators were in
+     debt to Crassus; and this, together with his great political
+     insurance-activity and power in elections, criminal cases at
+     law, etc., it depended that he, for a time, figured beside
+     Caesar and Pompey.
+
+     The wealth of these important personages must, and that not
+     only relatively, have made the poor poorer and their luxury
+     excited the covetousness of the people; but especially the
+     great number of slaves they kept, combined with their
+     pasturage system of husbandry, which rapidly spread over all
+     of Italy after the provinces had emptied their granaries to
+     supply the wants of the sovereign people, must have made it
+     less and less possible for the proletarians to live by the
+     work of their hands. Previously, the lower classes of the
+     free born had been exempted from the military service, while
+     slaves were conscripted for the fleet. Now, all this was
+     changed; and thus was taken away one of the chief causes
+     which had made the labor of free day laborers more
+     advantageous on the larger estates. (_Nitzsch_, Gracchen,
+     124 ff., 235 ff.) The spoils of war and conquest caused the
+     higher middle class to prefer to engage in the usurious
+     loaning of money rather than in industry which would much
+     more rapidly have formed a small middle class. (_Mommsen_,
+     R. G. I, 622 ff.)
+
+     Hence, the _misera ac jejuna plebecula, concionalis hirudo
+     aerarii_, according to _Cicero_, ad Att., I, 16, 6. At a
+     time, when the Roman census showed a population of over
+     1,500,000, Philippus, 104 before Christ, otherwise a
+     "moderate" man, could claim that there were not 2,000
+     citizens who had any property. (_Cic._, de Off., II, 21.)
+     True, those few were in such a position, that Crassus would
+     allow that those only were rich, who could feed an army at
+     their own expense. (_Cicero_, Parad., VI, 61; _Plin._, H.
+     N., XXXIII, 47.) Concerning the colossal private fortunes
+     under some of the earlier imperators, see _Seneca_, De
+     Benef., II, 27; _Tacit_., Ann., XII, 53, XIII, 32; XIV, 35;
+     Dial. de Causis, 8, _Dio C._, LXIII, 2 seq.
+
+     The clients of the time, that is the numerous poorly paid
+     idlers treated as things of little value, in the service of
+     the great, correspond, on a small scale, to the position of
+     the great crowd in relation to the emperor. Compare
+     _Friedlaender_, Sittengeschichte Roms., I, 296 ff. As late as
+     the West-Gothic storm, there were many houses which drew
+     4,000 pounds in gold, and about 1/3 as much in kind, from
+     their estates, per annum. (_Plut._, Bibl. Cod., 80, 63,
+     Bekk.) Goddess Pecunia Majestas divitiarum, in _Juvenal_, I,
+     113.
+
+     If we take the Roman proletariat in its wider extent, the
+     most frightful picture it presents is its slave-wars. Such a
+     war Sicily had shortly before the _tribunate_ of the elder
+     Gracchus, cost over a million (?) livres; and at the same
+     time there was a great uprising of slaves desolating Greece.
+     (_Athen._, VI, 83, 87 ff., 104.) A second war broke out in
+     the time of Cimbri. But the most frightful was that under
+     Spartacus, who collected 100,000 men, and the course of this
+     uprising will always remain a type of proletarian and slave
+     revolts. It originated among the most dangerous class of
+     slaves, most dangerous because best prepared for the
+     struggle, the gladiators, and among the immense _ergastula_,
+     where they were held together in large masses. It spread
+     with frightful rapidity, because the combustible material on
+     which it fed was everywhere to be found. It was conducted
+     with the most revolting cruelty. What the slaves demanded
+     before all else was vengeance, and what dread had a
+     gladiator of a death unaccompanied by torture?
+
+     After the first successes of the slaves dissensions broke
+     out among them. Such hordes can nowhere long preserve a
+     higher object than the momentary gratification of their
+     passions--a fact which shields human society from their
+     rage. Piracy, also, is another side of this proletarian
+     system. It found its strongest aliment in the system of
+     spoliation practiced by the Romans in Asia Minor. The
+     oppressed along the whole coast, joined the pirates
+     "preferring to do violence rather than to suffer."
+     (_Appian_, B. Mithr., 92, _Dio C._, XXXII, 3.) The temples
+     and the wealthy Romans were in special danger. But the worst
+     feature in the horrible picture was that many of the great
+     shared in the spoils with the robbers. They bought slaves
+     and other booty from them at mock prices, even close by the
+     gates of Rome. (_Strabo_, XIV, 668 seq., _Dio C._, XXXVI,
+     5.) Precisely as the slave-wars were looked upon with
+     pleasure by the poorer free men. Incendiarism was one of the
+     chief weapons of mutinous pauperism. (_Drumann_, IV, 282.)
+     The celebrated bacchanalian trial and the questions of
+     poisoning which followed it as a consequence (186 before
+     Christ) may be looked upon, in Rome, as the first marked
+     symptoms of the disruption between the oligarchy of money
+     and the proletariat. This put the morality of the higher
+     classes in a bad light, while, at the same time, a large
+     slave conspiracy in Apulia, which was not suppressed until
+     the year 185, exhibited the reverse of the picture. Cato,
+     the censor, endeavored to oppose this tendency by high
+     sumptuary taxes, and by establishing proletarian colonies.
+     At the same time we see the various parties among the
+     nobility uniting and the publicans joining them. (_Nitzsch_,
+     Gracchen, 124 ff.) The history of the last hundred years of
+     the Republic turns chiefly on the three great attempts made
+     by the proletariat to overthrow the citadel of the moneyed
+     oligarchy, under the Gracchi, under Marius and under Caesar.
+     The last was permanently successful but entailed the loss of
+     the freedom of both parties.
+
+     Among the pretty nearly useless remedies employed, besides
+     those described in Sec. 79, I may mention the following also:
+     the great number of agrarian laws intended to lessen estates
+     of too great extent owned by one person, and to restore a
+     free peasant population, in the years 133, 123, 100, 91, 59
+     before Christ; the law in Hannibal's time (_Livy_, XXI, 63)
+     that no senator should own a ship with a capacity of more
+     than 300 amphora; the provision (_Sueton._, Caes., 42) that
+     all great herd-owners should take at least one-third of
+     their shepherds from the ranks of freemen; the many laws _de
+     repetundis_, the first of which was promulgated 149 before
+     Christ, intended to protect the provinces against spoliation
+     by the governors; the L. Gabinia, 56 before Christ, which
+     prohibited the loaning by the provinces in Rome; lastly, a
+     rigid enforcement of police provisions against slaves,
+     especially against their bearing arms, which were carried to
+     such an extent, that slaves who had killed a boar with a
+     spear were crucified. (_Cicero_, in Verr., II, 3.) The chief
+     rule of every real oligarchy of money is, while they hold
+     the lower classes in general under their yoke with great
+     severity, to keep dangerous elements in good humor at the
+     expense of the state. Among these are especially the rabble
+     in large cities and the soldiery. Compare _Roscher_,
+     Betrachtungen ueber Socialismus und Communismus, 436, 437.]
+
+     [Footnote 204-11: In medieval Italy, also, popular freedom
+     was lost through a moneyed oligarchy and a proletariat.
+     _Popolo grasso_ and _minuto_ (_bourgeoisie_--_peuple_) in
+     Florence. The former were reproached especially with the
+     breach of trust in the matter of the public moneys
+     (_Sismondi_, Gesch. der Ital. Republiken, II, 323, seq.),
+     which reminds one of the French cry, _corruption_ in 1847.
+     _Machiavelli_ gives a masterly description of the class
+     contrasts during the last quarter of the fourteenth century,
+     in his Istoria Fiorent., III, a. 1378, 4. The poor, whose
+     spokesmen recall the most desperate shibboleths of modern
+     socialists, dwell principally on this, that there is only
+     one important difference, that between rich and poor; that
+     all men are by nature entirely equal; that people get rich
+     only through deceit or violence; that the poor want revenge
+     etc. It is significant how, in Florence, the largest banker
+     finally became absolute despot, and that contemporaneously
+     in Genoa, the Bank of St. George, in a measure, absorbed the
+     state; the former supported by numerous loans made to
+     influential persons like Crassus (_Machiavelli_, Ist. Fior.,
+     VII); the latter by the overstraining of the system of
+     national debt.]
+
+
+SECTION CCV.
+
+DISTRIBUTION OF THE NATIONAL INCOME.--HEALTHY DISTRIBUTION.
+
+Hence a harmony of the large, medium and small incomes may be considered
+the indispensable condition of the economic prosperity of a
+people.[205-1] This prosperity is best secured when the medium-class
+income prevails, when no citizen is so rich that he can buy the others,
+and no one so poor that he might be compelled to sell himself. (_J. J.
+Rousseau._)[205-2] Where there is not a numerous class of citizens who
+have time enough to serve the state even gratis, as jurymen, overseers
+of the poor, municipal officers, representatives of the people etc.
+(compare Sec. 63), and property enough to be independent of the whims and
+caprices of others, and to maintain themselves and the state in times of
+need, even the most excellent of constitutions must remain a dead
+letter. Nor should there be an entire absence of large fortunes, and
+even of inherited large fortunes. The changes of ministry which
+accompany constitutional government are fully possible only when the
+choice of men who would not lose their social position by a cessation of
+their salaries as public functionaries is not altogether too
+limited.[205-3] Thus the transaction of the most important political
+business, especially that which relates to foreign affairs, requires a
+peculiar elasticity of mind, and a capacity for routine on the grandest
+scale, which with very rare exceptions, can be acquired only by
+habituation to them from childhood, and which are lost as soon as the
+care for food is felt. The bird's-eye-view of those who are born "great"
+does not, by any means, embrace the whole truth of human things, but it
+does a very important side of it. Among this class, as a rule, it is
+easiest to find great party leaders, while leaders who have to be paid
+by their party, generally become in the long run, mere party
+tools.[205-4] It is true that it requires great intellectual and moral
+power to resist the temptations which a brilliant hereditary condition
+presents; temptations especially to idleness, to pride and debauchery.
+For ordinary men, it is a moral and, in the end, an economic blessing,
+that they have to eat their bread in the sweat of their brow,[205-5] and
+that they can grow rich only by long-continued frugality.[205-6]
+However, the distribution of the national income, and every change in
+that same distribution, constitute one of the most important but at the
+same time one of the most obscure departments of statistics.[205-7] When
+inequality increases because the lower classes absolutely decline, there
+is no use in talking any longer about the prosperity of the
+nation.[205-8] It is different, of course, when only the higher classes
+become, relatively speaking, higher yet. But even this latter kind of
+inequality may operate disastrously, inasmuch as it nourishes the most
+dangerous tendency of democracy, that of envy towards those who are
+better off.
+
+     [Footnote 205-1: _Verri_ Meditazioni, VI.]
+
+     [Footnote 205-2: _Aristotle's_ view that, in a good state,
+     the middle class should preponderate. (Polit. IV, 6, Sch.)
+     _Sismondi_ says: _la richesse se realise en jouissances;
+     mais la jouissance de l'homme riche ne s'accroit pas avec
+     ses richesses_. (Etudes sur l'Economie politique, 1837, I,
+     15.)]
+
+     [Footnote 205-3: If state offices were to be filled by
+     doctors or lawyers who live by their practice, after a time,
+     only those could be had who had no large practice to
+     sacrifice, that is, beginners or obscuranti.]
+
+     [Footnote 205-4: Per contra, see _Bazard_, Doctrine de Saint
+     Simon, 323. But _Sismondi_ is certainly right: _nous ne
+     croyons point, que les hommes qui doivent servir a
+     l'humanite de flambeau naissent le plus souvent au sein de
+     la classe riche; mais elle seule les apprecie et a le loisir
+     de jouir de leurs travaux_. (Etudes, I, 174.)]
+
+     [Footnote 205-5: To appreciate the demoralizing effects of
+     an income obtained without labor and without trouble on men
+     of small culture, we need only witness the bourgeoisie at
+     great watering places, pilgrimage places, seats of courts
+     and university cities supported largely by students.
+     Similarly at Mecca, Medina, Meschhed, Rome, etc. (_Ritter_,
+     Erdkunde VIII, 295 seq. IX, 32), and even in Palestine,
+     during the crusades, when the miserable Pullanes counted on
+     the tribute of the pilgrims. (_Wilken_, VII, 369, according
+     to _Jacob de Vitriaco_.)]
+
+     [Footnote 205-6: A man with $100,000 a year has a much less
+     incentive to make savings than 100 men with $1,000 each per
+     annum, for the reason that his economic wants are already
+     all richly satisfied, and he can have little hope of
+     improving it by saving. (_von Mangoldt_, V. W. L., 141.)]
+     [Footnote 205-7: _Harrington's_ fundamental thought
+     (1611-1677, Works, 1700) is, that the nature of the
+     constitution of a state depends on the distribution of the
+     ownership of its land. "Balance of property!" Where, for
+     instance, one person owns all the land or the larger portion
+     of it, we have a despotism; where the distribution is more
+     equal, a democracy, etc. All real revolutions are based upon
+     a displacement of the centre of gravity of property, since
+     in the long run, superstructure and foundation can not be
+     out of harmony with each other. For this reason, agrarian
+     laws are the principal means to prevent revolutions.
+     (_Roscher_, Gesch. der English. Volkswirthschaftslehre, 53
+     ff.) _Montesquieu_ also pays special attention to the
+     political consequences of the distribution of wealth. Thus,
+     for instance, in monarchies, the creation of large fortunes
+     should be promoted by the right of primogeniture; in
+     aristocracies, on the other hand, the great wealth of a few
+     nobles is as detrimental as that of extreme poverty. (Esprit
+     des Lois, V, 8, 9.)]
+
+     [Footnote 205-8: The common assertion of the socialists,
+     that the inequality of property is frightfully on the
+     increase, is as far from being proved as is the opposite one
+     of _Hildebrand_, Nat. Oek. der Gegenwart und Zukunft, I, 245
+     ff. According to _Macaulay_, Hist. of England, ch. 3, there
+     were, in England, in 1685, only about three (ducal) families
+     with an annual income of about L20,000 a year. The average
+     income of a lord amounted to L3,000; of a baronet, to L900;
+     of a member of the house of commons, to scarcely L800; and a
+     lawyer with L1,000 per annum was considered a very important
+     personage. At the same time, there were 160,000 families of
+     free peasants, that is more than 1/7 of the whole
+     population, whose average income amounted to from L60 to
+     L70. For the year 1821, _Marshall_, Digest of all Accounts,
+     etc., II, 1833, assumes, that there were 4,000 families with
+     over L5,000 yearly income; 52,000 families with from L1,500
+     to L5,000; 386,000 families with from L200 to L1,000;
+     2,500,000 families with less than L200. Compare, _per
+     contra_, the Edinburg Review, 1835. The income tax
+     statistics of 1847 show that 22 persons had an income of at
+     least L50,000 a year; 376 persons, from L10,000 to L50,000;
+     788, from L5,000 to L10,000; 400, from L4,000 to L5,000;
+     703, from L3,000 to L4,000; 1,483, from L2,000 to L3,000;
+     5,234, from L1,000 to L2,000; 13,287, from L500 to L1,000;
+     91,101, from L150 to L500.
+
+     If we compare these numbers with the corresponding ones of
+     the income tax of 1812, the numbers of those who returned an
+     income of L150 to L500 increased 196 per cent.; of those
+     with an income of from L500 to L1,000, 148 per cent.; of
+     from L1,000 to L2,000, 148 per cent.; of from L2,000 to
+     L5,000, 118 per cent.; of from L5,000 and more, 189 per
+     cent.; while the population in general had increased by
+     about 60 per cent. Compare Athenaeum, August, 1850; Edinburgh
+     Rev., April, 1857. Between 1848 and 1857, the development
+     was less favorable, so that the incomes of from L150 to L500
+     subject to taxation, increased only 7 per cent.; those from
+     L500 to L1,000 about 9.56 per cent.; those from L10,000 to
+     L50,000, by 42.4, and those over L50,000, 142.1 per cent.
+     Between 1858 and 1864, the incomes derived from industry and
+     commerce, subject to taxation below L200, had increased
+     about 19.4 per cent.; those over L10,000, 59 per cent.;
+     while the aggregate amount of all taxed incomes in this
+     category increased 19 per cent. (Stat. Journal, 1865, 546.)
+     According to _Baxter_, The National Income of the United
+     Kingdom, 1868, there are now 8,500 persons with a yearly
+     income of L5,000 and more, who draw in the aggregate 15.6
+     per cent. of the national British income, and on the average
+     nearly L15,000 each. There are, further, 48,800 persons with
+     a yearly income of from L1,000 to L5,000; 178,300 with from
+     L300 to L1,000; 1,026,400 with from L100 to L300; and
+     1,497,000 with less than L100 a year from their property. In
+     addition to this, 10,961,000 workmen on wages, with an
+     aggregate income of L324,600,000. Compare Secs. 172, 230.
+
+     In France, the number of so-called _electeurs_, who paid
+     direct taxes to at least the amount of 200 francs was, in
+     1831, 166,583, and increased uninterruptedly until 1845,
+     when it was 238,251, while the population had increased only
+     8.5 per cent.
+
+     In Prussia, the revenue from class-taxation up to 1840,
+     increased, unfortunately, in a smaller proportion than the
+     population: hence the lowest classes must have increased
+     relatively more than the others. (_Hoffmann_, Lehre von den
+     Steuern, 176 ff.) Between 1852 and 1873, according to the
+     statistical returns from class-taxation and of the
+     classified income tax, the growth of large incomes in the
+     provinces of old Prussia, seems to have been much more rapid
+     than that of the smaller ones. Thus, for every 100
+     taxpayers, with an income of from 400 to 1,000 thalers,
+     there was an increase to 175.5; of from 1,000 to 1,600
+     thalers, for every previous 100, 210.2; from 1,600 to 3,200
+     thalers, 232.3; of from 3,200 to 6,000, 253.9; of from 6,000
+     to 12,000 thalers, 324.8; of from 12,000 to 24,000, 470.6;
+     of from 24,000 to 52,000 thalers, 576.3; of from 52,000 to
+     100,000 thalers, 568.4; of from 100,000 to 200,000 thalers,
+     533.3; of over 200,000, 2,200. Hence, probably, a greater
+     growth towards the top, than the general increase in the
+     population will account for.
+
+     This concentration of property took place most noticeably in
+     Berlin, where for instance, between 1853 and 1875 the
+     incomes of from 1,000 to 1,600 thalers increased 212.2 per
+     cent.; those from 24,000 to 52,000, 994.1 per cent. There
+     are now in the whole state 2.24 per cent. of the population
+     (including those dependent on them) subject to the income
+     tax; that is, estimated as having a yearly income of 1,000
+     thalers. Of the remaining 97.76 per cent., more than a
+     quarter, and probably more than one-half, are as a class
+     free from taxation, because their income is presumably less
+     than 140 thalers (6,049,699 against 532,367, exempt for
+     other reasons and 4,850,791 belonging to classes subject to
+     taxation: these three numbers probably not including
+     dependents). Among the payers of an income tax, there are
+     79,464 with an average income of 1,237 thalers per annum;
+     41,366 with 2,171 thalers; 12,305 with 4,279 thalers; 4,030
+     with 8,383 thalers; 1,655 with 16,527 thalers; 513 with
+     32,428 thalers; 163 with 65,595 thalers; 39 with 137,692
+     thalers; 21 with 427,142 thalers; and one with 1,700,000
+     thalers per annum. (Preuss. statist. Ztschr., 1875, 116,
+     132, 142, 145, 149.) As the reverse of this picture, we may
+     take the fact that, in 1870, of 1,047,974 cases of
+     guardianship, there were only 208,614 in which there was any
+     property to be looked after. (Justiz-Minist-Blatt, 1872, No.
+     6.)
+
+     The figures from Bremen are very favorable. The incomes
+     subject to taxation amounted, in 1847, to 71.6 thalers per
+     capita; in 1869, to 131.2. The incomes subject to taxation
+     in class No. 1, that is from 250 to 399 thalers, increased
+     78 per cent.; in class No. 2, 400 to 499 thalers, 45 per
+     cent.; in class No. 3, 500 thalers and more, by 57 per cent.
+     The average income of the third class amounted, in 1847-50,
+     to 1,952 thalers; 1866-69, to 2,439 thalers. In 1848, there
+     were, of estates of over 3,000 thalers subject to taxation,
+     only 38 to every 1,000 inhabitants; in 1866, 49. (Jahrb. f.
+     amtl. Statistik Bremens, 1871, Heft 2, p. 185 seq.)]
+
+
+
+
+BOOK IV.
+
+CONSUMPTION OF GOODS.
+
+
+
+
+CHAPTER I.
+
+CONSUMPTION OF GOODS IN GENERAL.
+
+
+SECTION CCVI.
+
+NATURE AND KINDS OF CONSUMPTION.
+
+As it is as little in the power of man to destroy matter as it is to
+create it, we mean by the consumption of goods, in the broad sense of
+the word, the abolition of or the doing away with an utility without any
+regard to the question whether another higher utility takes its place;
+in its narrower sense (consumption proper), a decrease of resources of
+any kind. Consumption is the counterpart of production (Sec. 30), the top
+of the tree of which production is the roots, and the circulation and
+distribution of goods the trunk. (_A. Walker._) There is, also, what
+Riedel calls immaterial consumption, as when a utility disappears,
+either because the want itself to which it ministers disappears or
+because views have changed as to the means to be employed towards its
+satisfaction.[206-1]
+
+     [Footnote 206-1: Diminutions of value, such, for instance,
+     as an almanac, a newspaper, etc., undergoes simply from the
+     appearance of the next years' etc.; of a shield or a part of
+     an officer's uniform with the initials of the reigning
+     sovereign, only because of the fact of a new succession to
+     the throne. A boot or a glove loses a great part of its
+     value when its mate is destroyed. (_Rau_, Lehrbuch, Sec. 319.)]
+
+
+SECTION CCVII.
+
+NATURE AND KIND OF CONSUMPTION.--THE MOST USUAL KIND.
+
+The commonest kind of consumption is that caused by the use of a thing,
+or by the employing of it for the purpose of acquisition or of
+enjoyment.[207-1] From time immemorial, enjoyment-consumption has been,
+preponderantly, the affair of women, as acquisition-consumption has been
+the business of men.[207-2] Other circumstances being equal, the degree
+or extent of consumption by use (use-consumption) is determined by
+national character. Thus, for instance, the cleanliness and love of
+order characteristic of the Dutch have contributed greatly to the long
+preservation in good condition of their dwellings and household
+articles.[207-3]
+
+In the higher stages of civilization, the use of goods is wont to be
+divided more and more into special branches, according to the different
+peculiarities of the goods themselves, and of the different wants of
+men; a course of things which is, both as cause and effect, intimately
+related to the division of labor. I here speak of a principle of
+_division of use_ (differentiation and specialization). Thus, for
+instance, Lorenz Lange, in 1722, found only one kind of tea in the trade
+between Russia and China; Mueller, in 1750, found seven; Pallas, in 1772,
+ten; and Erman, in 1829, about seven hundred.[207-4] As the number of
+gradations of different kinds of the same goods increases with
+civilization, there is, in times of war, a retrogression in this
+respect, to a lower economic stage.[207-5]
+
+Opposed to this, we have the principle of the combination of use. There
+are numberless kinds of goods which may serve a great many just as well
+as they can one exclusive user; and this either successively or
+simultaneously, inasmuch as there is no necessity why, with the
+increasing use of the object, the size of the object itself should
+increase in an equal proportion. (According to Marlo: wealth usable by
+one; wealth usable by many; wealth usable by all.) Thus, for instance, a
+public library may be incomparably more complete, and accessible in a
+still higher degree than ten private libraries which together cost as
+much as it did. And so, a restaurant-keeper may serve a hundred guests
+at the same time, with a much greater table-variety, more to their
+taste, and at a more convenient time, than if each person made the same
+outlay for his private kitchen.[207-6] While formerly, only the great
+could travel rapidly, combination of use has enabled even the lower
+classes to do so in our own days. There is, doubtless, a dark side to
+this picture, too. Combination of use requires frequently great
+sacrifices of personal independence, which should not be underestimated
+when they affect individuality of character, or threaten the intimacy
+and closeness of family life. It is, however, a bad symptom when the
+division of use increases without any corresponding combination of
+use.[207-7] [207-8]
+
+     [Footnote 207-1: We should also mention here destructive
+     consumption, where the defenders of a country destroy
+     buildings, supplies, etc., only that the enemy may not use
+     them.]
+
+     [Footnote 207-2: Compare Die Lebensaufgabe der Hausfrau,
+     Leipzig, 1853; _von Stein_, Die Frau auf dem Gebiete der
+     National Oekonomie, 1875, and the beautiful remarks of
+     _Schaeffle_, N. Oek., 166; and _Lotz_, Mikrokosmus, II, 370
+     ff.]
+
+     [Footnote 207-3: In Germany horses are said to last, on an
+     average, 18 years; in England 25; in France and Belgium,
+     only 12 years. (See for the proofs of this _Rau_, Handbuch
+     II, Sec. 168.) The more civilized a people are, the less do
+     they completely destroy values by use; and the more do they
+     use their old linen, etc. as rags; their remains of food as
+     manure, etc. (_Roesler_, Grunds., 552.)]
+
+     [Footnote 207-4: _Ritter_, Erdkunde, III, 209. Thus, the
+     French in the 13th century were acquainted with only three
+     kinds of cabbage; in the 16th, with six, about 1651, with
+     12; they are now acquainted with more than 50; in the 16th
+     century they knew only 4 kinds of sorrel; in 1651, 7; about
+     1574, only 4 kinds of lettuce; to-day they know over 50;
+     under Henry II., they were acquainted with 2 or 3 kinds of
+     melons; in the 17th century, with 7; now they are acquainted
+     with over 40. (_Roquefort_, Histoire de la Vie privee des
+     Fr., I, 179 ff.) Instead of the four kinds of pears
+     mentioned by de Serre (1600), there were, in 1651, about
+     400. (I, 272.) Liebaud, 1570, knew only 19 kinds of grapes;
+     de Serre, 41. (_Roquefort_, III, 29 ff.) According to the
+     "Briefen eines Verstorbenen," IV, 390, the first
+     kitchen-gardener in London had 435 kinds of salad, 240 of
+     potatoes, and 261 of pease.
+
+     And so precisely in ancient times. While the earlier Greeks
+     speak of but one oinos, even at the most sumptuous feasts
+     (compare, however, _Homer_, Il. XI, 641;) and while even in
+     the time of Demosthenes only very few kinds of wine were
+     known (_Becker_, Charicles, I, 455), _Pliny_, H. N. XIV, 13,
+     was acquainted with about 80. In this respect the moderns
+     have never returned to ancient simplicity; at least the
+     fabliau, La Bataille des Vins, introduces us to 47 kinds of
+     French wine in the 13th century. (Compare also _Wackernagel_
+     in _Haupt's_ Zeitschrift fuer deutsches Alterth., VI. 261
+     ff., and _Henderson_, History of ancient and modern Wines,
+     1824.) The Lacedemonians, with their intentional persistence
+     in a lower stage of civilization, used the same garment in
+     winter and summer (_Xenoph._, De Rep. Laced., II, 4); while
+     the contemporaries of Athenaeos (III, 78 ff.) were acquainted
+     with 72 kinds of bread. With what a delicate sense for good
+     living the Romans in Caesar's time had discovered the best
+     supply places for chickens, peacocks, cranes, thunny-fish,
+     muraena, oysters and other shell-fish, chestnuts, dates,
+     etc., may be seen in _Gellius_, N. A., VII, 16. Compare
+     _Athen._, XII, 540.
+
+     In the middle age of Italy, the houses had almost always
+     three rooms: _domus_ (kitchen), _thalamus_, _solarium_.
+     (_Cibrario_, E. P. del medio Evo, III, 45.) The manors or
+     masters' houses built on the estates of Charlemagne had 3
+     and 2 rooms, sometimes only 1, and sometimes 2 rooms and 2
+     bedrooms. According to an old document of 895, a shed was
+     worth 5 sols, a well-built manor 12. (_Anthon_, Geschichte
+     der deutschen Landwirth., I, 249 ff., 311.) The Lex
+     Alamanorum, tit. 92, provided that a child, in order to be
+     considered capable of living, should have seen the roof and
+     four walls of the house! See an able essay, capable of being
+     still further developed, by _E. Herrmann,_ in which he
+     endeavors to explain the _division of use_ and of labor on
+     Darwin's hypothesis of the origin of species in the D.
+     Vierteljahrsschrift, Januar., 1867.]
+
+     [Footnote 207-5: Thus, 1785-1795, the best Silesian wool
+     cost 60, the worst 26, thalers per cwt.; in 1805, on account
+     of the great demand for cloth to make military uniforms, the
+     former cost 78, the latter 50 thalers. (_Hoffmann_,
+     Nachlass, 114.)]
+
+     [Footnote 207-6: The one large kitchen naturally requires
+     much less place, masonry, fuel, fewer utensils, etc., than
+     100 small ones. Think of the relatively large savings
+     effected by the use of one oven kept always heated! Even the
+     Lacedemonians called their meal associations pheidtia, i.
+     e., save-meals. Dainties proper can be consumed only in very
+     small portions, but cannot well be prepared in such
+     quantities. A guest at a first class Parisian restaurant
+     has, at a moderate price, his choice of 12 _potages_, _24
+     hors d'oeuvres_, _15-20 entrees de boeuf_, _20 entrees
+     de mouton_, _30 entrees de volaille et gibier_, _15-20
+     entrees de veau_, _12 de patisserie_, _24 de poisson_, _15
+     de rots_, _50 entremets_, _50 desserts_; and, in addition,
+     perhaps 60 kinds of French wine alone. What more can a
+     princely table offer in this respect? Compare
+     _Brillat-Savarin_, Physiologie du Gout, Medit., 28.]
+
+     [Footnote 207-7: In Diocletian's time, there was purple silk
+     worth from 2-1/2 thalers to 250 thalers per pound.
+     (_Marquardt_, Roem. Privatalterthuemer, II, 122.)]
+
+     [Footnote 207-8: Concerning the application of the above
+     principle in industry and in the care of the poor, see
+     _infra_. The advantages afforded by consumption in common,
+     or the combination of use, have been enthusiastically dwelt
+     upon by _Fourier_, and the organization of his phalansteries
+     is based essentially on that principle. In these colossal
+     palaces, which, spite of all their magnificence, cost less
+     than the hundred huts of which they take the place, a ball
+     is given every evening, because it is cheaper to light one
+     large hall, in which all may congregate. The division of
+     use, or of consumption also, is here developed in a high
+     degree. When 12 persons eat at the same table they have 12
+     different kinds of cheese, 12 different kinds of soup, etc.
+     Even little children are allowed to yield to the full to
+     their gluttonous propensities, since on them depends the
+     productive activity of the so-called _series passionnees_.
+     Compare Nouveau Monde, 272. The Saint-Simonists also
+     characterize the _association universelle_ as the highest
+     goal of human development. (_Bazard_, Exposition, 144 ff.)
+     On the danger of this development to family life, see
+     _Sismondi_, Etudes I, 43.]
+
+
+SECTION CCVIII.
+
+NATURE AND KINDS OF CONSUMPTION.--NOTIONAL CONSUMPTION.
+
+By the notional consumption (_Meinungsconsumtion_), as Storch calls it,
+operated by a change of fashion, many goods lose their value, without as
+much as suffering the least change of form or leaving the merchant's
+shop. This kind of consumption, too, is exceedingly different in
+different nations. Thus, in Germany, for instance, fashions are much
+more persistent than in France.[208-1] In the most flourishing times of
+Holland, only noblemen and officers changed with the fashions, while the
+merchants and other people wore their clothes until they went to
+pieces.[208-2] In the East, fashions in clothing are very
+constant;[208-3] but the expensive custom there prevails, for a son,
+instead of moving into the house occupied by his father, to let it go to
+ruin, and to build a new one as a matter of preference. The same is true
+even in the case of royal castles. Hence, in Persia, most of the cities
+are half full of ruins, and are in time moved from one place to
+another.[208-4]
+
+The national income of a country is, on the whole, much less affected by
+a change of fashion than the separate incomes of its people. The same
+whim which lowers the value of one commodity increases the value of
+another; and what has ceased to be in fashion among the rich, becomes
+accessible, properly speaking, to the poorer classes of the community
+for the first time.[208-5] The want of varying his enjoyments is so
+peculiar to man, and so intimately connected with his capacity for
+progress, that it cannot in itself be blamed. But if this want be
+immoderately yielded to, if the well-to-do should despise every article
+which has not the charm of complete novelty, the advantages of the whole
+pattern-system, by means of which the preparation of a large number of
+articles from the same model at a relatively small cost, would be lost.
+Besides, fashion, which makes production in large quantities, for the
+satisfaction of wants that are variable and free, possible, frequently
+means even a large saving in the cost of production.[208-6]
+
+     [Footnote 208-1: The consequences of this are very important
+     to the character of French and German industry.
+     (_Junghanns_, Fortschritte des Zollvereins, I, 28, 51, 58.)
+     Rapidly as the Parisian fashions in dress make their way
+     into the provinces, their fashions in the matter of the
+     table are very slow to do so. (_Rocquefort_, Hist. de la Vie
+     privee des Fr., I, 88 seq.)]
+
+     [Footnote 208-2: _Sir W. Temple._ Observations on the U.
+     Provinces, ch. 6.]
+
+     [Footnote 208-3: As most persons adorn themselves for the
+     sake of the opposite sex, this invariability is caused by
+     the oriental separation of two sexes. Our manufacturers
+     would largely increase their market, if they could succeed
+     in civilizing the East in this respect. In Persia, shawls
+     are frequently inherited through many generations, and even
+     persons of distinction buy clothes which had been worn
+     before. (_Polak_, Persien, I, 153.) In China, the Minister
+     of Ceremonies rigidly provided what clothes should be worn
+     by all classes and under severe penalties. (_Davis_, The
+     Chinese, I, 352 seq.)]
+
+     [Footnote 208-4: _Jaubert_, Voyage en Perse, 1821. While
+     cities like Seleucia, Ctesiphon, Almadin, Kufa, and even
+     Bagdad, were built from the ruins of Babylon.]
+
+     [Footnote 208-5: In Moscow, merchants close their accounts
+     at Easter. Then begins a new cycle of fashions, after which
+     all that remains is sold at mock-prices. (_Kohl_, Reise,
+     98.) In Paris, there are houses which buy up everything as
+     it begins to go out of fashion and then send it into the
+     provinces and to foreign parts. Thus, there are immense
+     amounts of old clothing shipped from France and England to
+     Ireland. Hence, the latter country can have no national
+     costume appropriate to the different classes; and the
+     traveler sees with regret, crowds of Irish going to work in
+     ragged frock-coats, short trowsers and old silk hats. In
+     Prussia, many of the peasantry, in the time of Frederick the
+     Great, wore the discarded uniforms of the soldiery.]
+
+     [Footnote 208-6: _Schaeffle_, N. Oek. _Hermann_, Staatsw.
+     Untersuchungen, II, Aufl., 100.]
+
+
+SECTION CCIX.
+
+CONSUMPTION WHICH IS THE WORK OF NATURE.
+
+The least enjoyable of all consumption (_loss-consumption_) is that
+which is the work of nature; and nature is certainly most consuming in
+the tropics. During the rainy season, in the region of the upper Ganges,
+mushrooms shoot up in every corner of the houses; books on shelves swell
+to such an extent that three occupy the place previously occupied by
+four; those left on the table get covered over with a coat of moss
+one-eighth of an inch in thickness. The saltpetre that gathers on the
+walls has to be removed every week in baskets, to keep it from eating
+into the bricks. Numberless moths devour the clothing. Schomburgk found
+that, in Guiana, iron instruments which lay on the ground during the
+rainy season became entirely useless within a few days, that silver
+coins oxydized, etc.; evidently a great obstacle in the way of the
+employment of machinery. In summer, the soil of this same region, so
+rich in roots, is so parched by the heat, that subterranean fires
+sometimes cause the most frightful destruction.
+
+In Spanish America, there are so many termites and other destructive
+insects that paper more than sixty years old is very seldom to be found
+there.[209-1]
+
+The warmer portions of the temperate zone are naturally most favorable
+to the preservation of stone monuments. Thus, for instance, in
+Persepolis, where there has been no intentional destruction, the stones
+lie so accurately superimposed the one on the other that the lines of
+junction can frequently be not even seen. The amphitheatre of Pola has
+lost in two thousand years only two lines from the angles of the
+stones.[209-2] The Elgin marble statues would certainly have lasted
+longer in Greece than they will in England. On the other hand, warm and
+dry climates have a very peculiar and exceedingly frightful species of
+nature-consumption in the locust plagues. The principal countries
+affected by such consumption are Asiatic and African Arabistan, the land
+of the Jordan and Euphrates, Asia Minor, parts of Northern India. On
+Sinai, locust plagues occur, on an average, every four or five years;
+but from 1811 to 1816, for instance, they destroyed everything each
+year. Their course is in its effects like an advancing conflagration. It
+turns the green country, frequently in a single day, into a brown
+desert; and famine and pestilence follow in its path.[209-3]
+
+The colder regions of the temperate zone are exposed to danger and
+damage from land-slides in their long series of mountains, and from
+avalanches, from quicksands in many of their plains, from floods and the
+total destruction of land along their coasts;[209-4] but, on the other
+hand, they are, relatively speaking, freest from hurricanes, earthquakes
+and volcanoes, the ravages of which no human art or foresight is
+competent to cope with. From the point of view of civilization and of
+politics there is here a great advantage. See Sec. 36. The former maritime
+power of Venice and of Holland is closely allied to the dangers with
+which the sea continually threatened them, and which was a continual
+spur to both. But, on the other hand, the danger from earthquakes which
+always impends over South America and Farther India, must produce
+consequences similar to those of anarchy or of despotism, because of the
+uncertainty with which they surround all relations. See Sec. 39.[209-5]
+
+     [Footnote 209-1: _Ritter_, Erdkunde VI, 180 ff; _Schomburgk_
+     in the Ausland, 1843, Nr. 274; _Humboldt_, Relation hist.,
+     I, 306; Neuspanein, IV, 379; _Poepping_, Reise, II, 197 ff.,
+     237 ff. The ant, even in Marcgrav's time, was called the
+     _rey do Brazil_.]
+
+     [Footnote 209-2: _Ritter_, Erdkunde VIII, 895; _Burger_,
+     Reise in Oberitalien, I, 7. The monuments of Nubia have
+     suffered much less from the hand of time than those of Upper
+     Egypt, because the air of the plateau is drier. The effects
+     of climate have been most severely felt in Lower Egypt,
+     where the air is most moist. (_Ritter_, I, 336, 701.) In the
+     case of wood, on the other hand, dryness may be a great
+     agent of destruction. Thus, in Thibet, wooden pillars,
+     balconies, etc., have to be protected with woolen coverings
+     to keep them from splitting. (_Turner_, Gesandtsreise,
+     German translation, 393 ff.)]
+
+     [Footnote 209-3: Compare _Ritter_, Erdkunde, VIII, 789-815,
+     especially the beautiful collection of passages from the
+     Bible bearing on the locust plague, 812 ff. _Pliny_, H. N.,
+     XI, 85. _Volney_, Voyages en _Syrie_, I, 305. For account of
+     an invasion of locusts, which, in 1835, covered half a
+     square mile, four inches in thickness, see _v. Wrede_, R. in
+     Hadhrammaut, 202. It is estimated that, in England, the
+     destruction caused by rats, mice, insects, etc., amounts to
+     ten shillings an acre per year; i. e., to L10,000,000 per
+     annum. (_Dingler_, Polyt. Journal, XXX, 237.)]
+
+     [Footnote 209-4: Origin of the gulf of Dollart in Friesland,
+     2-1/2 square miles in area between 1177 and 1287; and of
+     Biesboch of 2 square miles in 1421. On the repeated
+     destruction of lands in Schleswig by inundations, see
+     _Thaarup_, Daenische Statistik, I, 180 seq. It is a
+     remarkable fact that in relation to the Mediterranean,
+     _Strabo_, VII, 293, considers all such accounts fables.]
+
+     [Footnote 209-5: As to how the grandeur and
+     irresistibleness, etc. of this nature-consumption in the
+     tropics leads men to superstition and the indulgence of wild
+     fancies, see _Buckle_, History of Civilization in England,
+     1859, I, 102 ff. Since the conquest of Chili, sixteen
+     earthquakes, which have destroyed large cities totally or in
+     part, have been recorded.]
+
+
+SECTION CCX.
+
+NECESSITY OF CONSIDERING WHAT IS REALLY CONSUMED.
+
+Whenever there is question of consumption, it is necessary to examine
+with rigid scrutiny, what it is that has been really consumed; that is,
+that has lost in utility. The person, for instance, who pays twenty
+dollars for a coat, has consumed that amount of capital only when the
+coat has been worn out.[210-1] What is called the consumption of one's
+income in advance is nothing but the consumption of a portion of capital
+which the consuming party intends to make good from his future
+income.[210-2] Fixed capital, too, can certainly be directly consumed;
+for instance, when the owner of a house treats the entire rent he
+receives from it as net income, makes no repairs, and no savings to put
+up a new building at some future time. As a rule, however, the owner of
+fixed capital must, in order to consume it, first exchange it against
+circulating capital. Thus the prodigality and dissipation, especially of
+courts of absolute princes, have found numerous defenders who have
+claimed that they are uninjurious, provided only the money spent in
+extravagance remained in the country.[210-3] The prodigality itself,
+that is, the unnecessary destruction of wealth is not, on that account,
+any the less disastrous.[210-4] If, for instance, there are fire-works
+to the amount of 10,000 dollars, manufactured exclusively by the workmen
+of the country, ordered for a gala day; the night before they are used
+for purposes of display, the national wealth embraces two separate
+amounts, aggregating 20,000 dollars; that is, 10,000 dollars in silver
+and 10,000 in rockets, etc. The day after, the 10,000 in silver are
+indeed still in existence, but of the 10,000 in rockets, etc., there is
+nothing left. If the order had been made from a foreign country the
+reverse would have been the case, the silver stores of the people would
+have been diminished, but their supply of powder would remain intact.
+
+In a similar way, there is occasion given for the greatest
+misunderstanding when people so frequently speak of producers and
+consumers as if they were two different classes of people. Every man is
+a consumer of many kinds of goods; but, at the same time, he is a
+producer, unless he be a child, an invalid, a robber, a pick-pocket,
+etc.[210-5] At the same time, Bastiat is right in saying that in case of
+doubt when the interests of production and of consumption come in
+conflict, the state, as the representative of the aggregate interest,
+should range itself on the side of the latter. If we carry things on
+both sides to their extremest consequences, the self-seeking desire of
+consumers would lead to the utmost cheapness, that is, to universal
+superfluity, and the self-seeking wish of producers to the utmost
+dearness, that is, to universal want.[210-6]
+
+     [Footnote 210-1: Compare _Mirabeau_, Philosophie rurale, ch.
+     1; _Prittwitz_; Kunst reich zu werden, 474.]
+
+     [Footnote 210-2: A very important principle for the
+     understanding of the real effects of the spending of a state
+     loan!]
+
+     [Footnote 210-3: In this way _Voltaire_, Siecle de Louis
+     XIV., ch. 30, excuses for instance the extravagant (?)
+     buildings at Versailles; and in a very similar way Catharine
+     II. expressed herself in speaking to the Prince de Ligne:
+     Memoires et Melanges par le Prince de Ligne, 1827, II, 358.
+     _v. Schroeder_ even thinks that the Prince might consume as
+     much and even more than "the entire capital" of the country
+     amounted to; only, he would have him "let it get quickly
+     among the people again." He is also in favor of the utmost
+     splendor in dress, provided the public see to it that
+     nothing was worn in the country which was not made in the
+     country. (Fuerstl. Schatz- u. Rentkammer, 47, 172.) Similarly
+     even _Botero_, Della Ragion di Stato VII, 85; VIII, 191; and
+     recently _v. Struensee_, Abhandlungen I, 190. The principle
+     of Polycrates in _Herodotus_ is nearly to the same effect.
+     Compare, per contra, _Ferguson_, Hist. of Civil Society, V,
+     5.]
+
+     [Footnote 210-4: With the exception of the profit made by
+     the manufacturers.]
+
+     [Footnote 210-5: Strikingly ignored by _Sismondi_, N. P.,
+     IV, ch. II.]
+
+     [Footnote 210-6: _Bastiat_, Sophismes economiques, 1847, ch.
+     IV. Everything which, in the long run, either promotes or
+     injures production, "steps over the producer and turns in
+     the end to the gain or loss of the consumer." Only for this
+     principle, inequality and dissensions among men would keep
+     growing perpetually. All that the systems of Saint Simonism
+     and communism contain that is relatively true is thus
+     realized.]
+
+
+SECTION CCXI.
+
+NATURE AND KINDS OF CONSUMPTION.--PRODUCTIVE CONSUMPTION.
+
+There is no production possible without consumption. The embodiment of a
+special utility into any substance is a limitation of its general
+utility. Thus, for instance, when corn is baked into bread, it can no
+longer be used for the manufacture of brandy or of starch.[211-1]
+
+When, therefore, consumption is a condition (outlay) to production it is
+called productive (reproductive).[211-2] Here, indeed, the form of the
+consumed goods is destroyed, but the value of the goods lives on in the
+new product.
+
+There are different degrees of productiveness in consumption also. Thus,
+to a scholar, his outlay for books in his own branch is immediately
+productive; but nevertheless, books in departments of literature very
+remote from his own, pleasure trips, etc. may serve as nutrition and as
+a stimulus to his mind. According to Sec. 52, we are compelled to consider
+all consumption productive which constitutes a necessary means towards
+the satisfaction of a real economic want. We may, indeed, distinguish
+between productive consumption in aid of material goods, of personal
+goods and useful relations; but in estimating the productiveness of
+these different sorts of consumption we are concerned not so much with
+the nature of the consumption as the results in relation to the nation's
+wants. The powder that explodes when a powder magazine burns is consumed
+unproductively; but the powder shot away in war may be productively
+consumed just as that used to explode a mine may be unproductively
+consumed; for instance, when the war is a just and victorious one and
+the mining enterprise has failed.[211-3]
+
+The maintenance or support of those workmen whom they themselves
+acknowledge to be productive is presumably accounted productive
+consumption by all political economists. Why not, therefore, the cost of
+supporting and educating our children, who, it is to be hoped, will grow
+up later to be productive workmen. Man's labor-power is, doubtless, one
+of the greatest of all economic goods. But without the means of
+subsistence, it would die out in a few days. Hence we may, and even
+without an atomistic enumeration of the individual services and products
+of labor, consider the continued duration of that labor-power itself as
+the continued duration of the value of the consumed means of
+subsistence.[211-4]
+
+     [Footnote 211-1: Even when air-dried bricks are made from
+     water and clay which cost nothing; when purely occupatory
+     work is done, and purely intellectual labor performed, some
+     consumption of the means of subsistence by the workmen is
+     always necessary.]
+
+     [Footnote 211-2: Chrematistikai in contradistinction to
+     analotikai, according to _Plato_, De Rep., VIII, 559.
+     Temporary consumption. (_Umpfenbach._)]
+
+     [Footnote 211-3: _Storch_, Handbuch, II, 450.]
+
+     [Footnote 211-4: Against the difference formerly usually
+     assumed between productive and unproductive consumption, see
+     _Jacob_, Grundsaetze der Nat. Oek., II, 530. It is because of
+     a too narrow view that _Hermann_ (II, Aufl., 311), instead
+     of reproductive consumption, speaks of technic consumption.]
+
+
+SECTION CCXII.
+
+UNPRODUCTIVE CONSUMPTION.
+
+Moreover, unproductive consumption embraces not only every economic
+loss, every outlay for injurious purposes,[212-1] but also every
+superfluous outlay for useful purposes.[212-2] Yet, not to err in our
+classification here, it is necessary to possess the impartiality and
+many-sidedness of the historian, which enable one to put himself in the
+place of others and feel after them as they felt. The man, for instance,
+who, in cities like Regensburg and especially Rome, sees numberless
+churches often, so to speak, elbowing one another, cannot fail to
+recognize the difference between the buildings of to-day for business,
+political, educational and recreative purposes, and the medieval, for
+the satisfaction of spiritual wants. The latter also may, in their own
+sphere, and in their own time, have, as a rule, operated productively,
+as the former operate, often enough, by way of exception unproductively;
+as in the case of railway and canal speculations which have ended in
+failure. It would be difficult to decide between the relative value of
+the two kinds of wants, because the parties to the controversy do not,
+for the most part, share the want (_Beduerfniss_) of their respective
+opponents, frequently do not even understand it, and therefore despise
+it. Thus, there are semi-barbarous nations, who can entertain that
+respect for the laws which is necessary even from an economic point of
+view only to the extent that they see the person whose duty it is to
+cause them to be observed seated on a throne and surrounded by
+impressive splendor. Hence, such splendor here could not be considered
+merely unproductive consumption.[212-3]
+
+We must, moreover, remark in this place as we did above, Sec. 54, that it
+is easiest to pass the boundary line between productive and unproductive
+consumption in personal services. In 1830, the expenses of the state, in
+Spain, amounted to 897,000,000 of reals per annum; the outlay of
+municipal corporations, to 410,000,000, and that for external purposes
+of religion, 1,680,000,000. (_Borrego._) This is certainly no salutary
+proportion; but it is scarcely evidence of a worse economic condition
+than the fact that in Prussia it would require a basin one Prussian mile
+in length, thirty-three and eight-tenths feet broad, and ten feet deep
+to hold all the brandy drunk in the country (_Dieterici_); or this
+other, that the British people spend yearly L68,000,000 sterling for
+taxes and L100,000,000 yearly for spirituous liquors.[212-4] Berkeley
+rightly says that the course practiced in Ireland, with its famishing
+proletarian population, of exporting the means of subsistence and
+exchanging them against delicate wines, etc., is as if a mother should
+sell her children's bread to buy dainties and finery for herself with
+the proceeds.[212-5] [212-6]
+
+     [Footnote 212-1: Thus, for instance, food which spoils
+     unused, and food which is stolen and which puts a thief in a
+     condition to preserve his strength to steal still more.]
+
+     [Footnote 212-2: So far _Senior_, Outlines, 66, is right:
+     the richer a nation or a man becomes, the greater does the
+     national or personal productive consumption become.]
+
+     [Footnote 212-3: Such gigantic constructions as the palaces,
+     pyramids, etc. of Egypt, Mexico or Peru are a certain sign
+     of the oppression of the people by rulers, priests or
+     nobles. One of the Egyptian pyramids is said to have
+     occupied 360,000 men for twenty years. (_Diodor._, I, 63;
+     _Herodot._, II, 175; _Prescott_, History of Mexico, I, 153,
+     History of Peru, I, 18.)]
+
+     [Footnote 212-4: Edinburg Rev., Apr., 1873, 399.]
+
+     [Footnote 212-5: _Berkeley_, Querist, 168, 175, says that
+     the national wants should be the guiding rule of commerce,
+     and that besides, the most pressing wants of the majority
+     should be first considered.]
+
+     [Footnote 212-6: _Ricardo_, Principles, p. 475, was of
+     opinion that an outlay of the national or of private income
+     in the payment of personal services increased the demand for
+     labor and the wages of labor in a higher degree than an
+     equal outlay for material things. The error at the
+     foundation of this is well refuted by _Senior_, Outlines,
+     160 ff.
+
+     The first to zealously advocate and treat the theory of
+     productive consumption was _J. B. Say_, Traite, III, ch. 2,
+     seq.; Cours pratique, II, 265. But the germs of the doctrine
+     are to be found in _Dutot_, Reflexions politiques sur le
+     Commerce et les Finances, 1738, 974, _ed_. Daire. His
+     distinctions are in part drawn with great accuracy. Thus he
+     says that, among others, a manufacturer of cloth,
+     productively consumes the results of his workmen, but that
+     the workmen themselves who exchange these results for bread,
+     consume the latter unproductively. _Say_ is guilty of the
+     inconsistency of claiming that only that consumption is
+     productive which contributes directly to the creation of
+     material exchangeable goods, spite of the fact that he gave
+     the productiveness of labor a much wider scope. _Rau_,
+     Lehrbuch, I, Sec. 102 ff., 323 seq., is more consistent in so
+     far as he applies the same limitation in both cases.
+     (Compare also Sec. 333, 336.) _Hermann_, Staatsw.
+     Untersuchungen, 170 seq., 231 ff., would prefer to see the
+     idea of productive consumption banished from the science,
+     for the reason that if the value of the thing alleged to be
+     consumed continues, there can be no such thing as its
+     consumption. But, I would rejoin: in a good national
+     economy, there would be, according to this, scarcely any
+     consumption whatever, because the aggregate value of that
+     which I have called above productive consumption is
+     unquestionably preserved, and continues in the aggregate
+     value of the national products.
+
+     Productive consumption is ultimately a stage of production,
+     just as production itself is ultimately a means to an end,
+     consumption, and therefore a preparation for the latter.
+     Both ideas may be rigorously kept apart from each other,
+     just as the expenses and receipts of a private business man,
+     who makes a great portion of his outlay simply with the
+     intention of reaping receipts therefrom, may be. Every one
+     desires his production to be as large as possible, and his
+     productive consumption, so far it does not fail of its
+     object, as small as possible. _Riedel_ rightly says that the
+     theory of reproductive consumption serves Political Economy
+     as the bridge which closes the circle formed by the action
+     of production, distribution and consumption. (Nat. Oek. III,
+     49.) One of the chief fore-runners of the view we advocate
+     was _McCulloch_, Principles, IV, 3 ff. _Gr. Soden_, Nat.
+     Oek., distinguishes economic consumption, un-economic and
+     anti-economic consumption. (Nat. Oek., I, 147.)]
+
+
+SECTION CCXIII.
+
+EQUILIBRIUM BETWEEN PRODUCTION AND CONSUMPTION.
+
+In all cases economic production is a means to some kind of consumption
+as its end.[213-1] The sharpest spur to productive activity is the
+feeling of want.[213-2] "Want teaches art, want teaches prayer, blessed
+want!" Well too has it been said: "Necessity is the mother of
+invention!" Leaving mere animals out of consideration,[213-3] those men
+who experience very few wants, with the exception of some rare and
+highly intellectual natures, prefer rest to labor. Therefore, when
+European merchants desire to engage in trade with a savage nation they
+have uniformly to begin by sending them their nails, axes,
+looking-glasses, brandy, etc., as gifts. Not until the savage has
+experienced a new enjoyment does the want of continuing it make itself
+felt; or is he prepared to produce for purposes of commerce.[213-4] In a
+state of normal development, the complete and continuing satisfaction of
+the coarser wants should constitute the foundation for the
+higher.[213-5]
+
+     [Footnote 213-1: We should not, indeed, say, on this
+     account, with _Adam Smith_, IV, ch. 8, that "consumption is
+     the sole end and purpose of all production," for labor and
+     saving, besides their economic object have a higher one,
+     imperishable and personal. Compare _Knies_, Polit. Oek. 129,
+     and _supra_, Sec. 30.]
+
+     [Footnote 213-2: According to _Sir F. M. Eden_, State of the
+     Poor, I, 254, it is one of the most unambiguous symptoms of
+     advanced civilization when families eat regularly at the
+     same table; so also sleeping in real beds. "Bed and board!"
+     It is said that the regularity of meal times was introduced
+     among the Greeks by Palamedes. _Athen._ I, 11, after
+     _AEschylus_.]
+
+     [Footnote 213-3: Hibernating animals have supplies and
+     dwellings, that is something analogous to capital.]
+
+     [Footnote 213-4: This advance is generally observed to be
+     introduced by the _jus fortioris_. _Steuart_, Principles I,
+     ch. 7. (Compare Secs. 45-6-8.) In this way, the earliest
+     oriental despotisms have unwittingly been of great service
+     to mankind. What the sultan here accomplished with his few
+     favorites was done in the lower stages of civilization of
+     the west by the aristocracy of great vassals, in a manner
+     more worthy of human beings, and in a much more stable form.
+     (_J. S. Mill_, Principles I, 14 ff.)]
+
+     [Footnote 213-5: _Banfield_, Organization of Industry, 1848,
+     11.]
+
+
+SECTION CCXIV.
+
+CAUSES OF AN INCREASE OF PRODUCTION.
+
+Only when wants increase does production increase also.[214-1] The old
+maxim: _Si quem volueris esse divitem, non est quod augeas divitias, sed
+minuas cupiditates (Seneca)_, would, if consistently carried out, have
+thwarted the advance of civilization and frustrated the improvement of
+man's condition. On the other hand, most political economists, without
+more ado, assume that individuals, and still more nations, are wont to
+extend the aggregate of their enjoyments just as far as there is a
+possibility of satisfying their wants. But they forget here how great a
+part is played in the world, as men are constituted, by the principle of
+inertia.[214-2] At the first blush, what seems more natural than that
+the less labor a people need employ to obtain the most indispensable
+means of subsistence, the more time and taste would remain to them to
+satisfy their more refined wants. According to this, we should expect to
+discover a more refined civilization, especially, in intellectual
+matters, in the earliest periods, when population is small, when land
+exists in excess and is not yet exhausted. But, in reality, precisely
+the reverse is the case. In the earliest stages of civilization
+accessible to our observation, we find materialism prevailing in its
+coarsest form, and life absorbed entirely by the lowest physical wants.
+(Tropical lands.) Where bread grows on the trees, and one needs only to
+reach out his hand and pluck it; where all one wants to cover his
+nakedness is a few palm leaves, ordinary souls find no incentive to an
+ant-like activity, or to a union among themselves for economic
+purposes.[214-3] When a Mexican countryman earns enough to keep himself
+and his family from absolute want by two days' labor in a week, he idles
+away the other five. It never occurs to him that he might devote his
+leisure time to putting his hut or his household furniture, etc., in
+better shape. The necessity of foresight even is almost unknown; and in
+the most luxuriantly fertile country in the world, a bad harvest
+immediately leads to the most frightful famine. Humboldt was assured
+that there was no hope of making the people more industrious except by
+the destruction of the banana plantations.[214-4] But, indeed, there
+would be little gained by such compulsory industry. To work for any
+other end than satiation, it is necessary that man should feel wants
+beyond the want created by mere hunger.[214-5] There are so many
+conditions precedent (and mutually limiting one another) to a general
+advance in civilization, that such an advance can, as a rule, take place
+only very gradually. Let us suppose, for instance, a single Indian in
+Mexico, perfectly willing to work six days in the week, and in this way
+to cultivate a piece of land three times as great as his fellow Indians.
+Where would he get the land? He would, for a time find no purchasers for
+his surplus, and therefore not be in a condition to pay the landlord as
+much as the latter hitherto received from the pasturage alone. Not until
+cities are built and offer the rural population the products of industry
+in exchange for theirs, can they be incited to, or become capable of
+effecting a better cultivation of the land. This incentive and this
+capacity, are inseparably connected with each other. Where the
+agricultural population produce no real surplus, but after the fashion
+of medieval times, produce everything they want themselves, and consume
+all their own products with the exception of the part paid to the state
+as a tax, there can scarcely be an industrial class, a commercial class,
+or a class devoted to science, art, etc. And, conversely, it is only the
+higher civilization which finds expression in the development of these
+classes, that, by a more skillful guidance of the national labor, can
+call forth its productiveness to an extent sufficient to yield a
+considerable surplus of agricultural commodities over and above the most
+immediate wants of the cultivators of the soil themselves. Hence, we
+find that precisely in those countries which are most advanced in the
+economic sense, there is relatively the smallest number of men engaged
+in agriculture, and relatively the largest number in production of a
+finer kind.[214-6] It is here as in private housekeeping: the poorer a
+man is, the greater is the portion of his income which he is wont to lay
+out for indispensable necessities.[214-7] [214-8]
+
+     [Footnote 214-1: There is obviously here supposed besides
+     the want thus increased, a capacity for development. Thus,
+     for instance, the inhabitants of New Zealand brought with
+     them, in what concerns clothing, dwellings, etc., the
+     customs of a tropical into a colder country, and did not
+     understand how to oppose the rigor of the new climate,
+     except by building immoderately large fires, until they
+     became acquainted with European teachers. (Edinb. Review,
+     April, 1850, 466.)]
+
+     [Footnote 214-2: Compare _R. S. Zachariae_, Vierzig Buecher
+     vom Staate, VII, 37. Men in the lower stages of civilization
+     cherish a greater contempt for those more advanced than they
+     are themselves visited with by the latter. Thus it was
+     customary for the Siberian hunting races to utter a
+     malediction: May your enemy live like a Tartar, and have the
+     folly to engage in the breeding of cattle. (_Abulghazi
+     Bahadur_, Histoire genealogique des Tartares.) Nomadic races
+     look upon the inhabitants of cities as for the most part
+     prisoners.]
+
+     [Footnote 214-3: The "happy, contented negroes," as Lord
+     John Russel called them, work in Jamaica, on an average,
+     only one hour a day since their emancipation. (Colonial
+     Magazine, Nov. 1849, 458.) Egypt, India, etc., from time
+     immemorial, the classic lands of monkish laziness. Compare
+     _Hume_, Discourses, No. 1, on Commerce. On the other hand,
+     the person who has six months before him for which he must
+     labor and lay up a store, if he would not famish or freeze,
+     must necessarily be active and frugal; and there are other
+     virtues which go along with these. (_List_, System der
+     polit. Oek., I, 304.) According to _Humboldt_, the change of
+     seasons compels man to get accustomed to different kinds of
+     food, and thus fits him to migrate. The inhabitants of
+     tropical countries are, on the other hand, like
+     caterpillars, which cannot emigrate nor be made to emigrate,
+     on account of the uniform nature of their food.]
+
+     [Footnote 214-4: _Humboldt_, N. Espagne, IV, ch. 9, II, ch.
+     5. Similarly among the coarser Malayan tribes, the facility
+     with which fish is caught and the cheapness of sago are the
+     principal causes of their inertia and of their unprogressive
+     uncivilization. (_Crawfurd._)]
+
+     [Footnote 214-5: _Le travail de la faim est toujours borne
+     comme elle. (Raynal.)_]
+
+     [Footnote 214-6: Compare _Adam Smith_, I, ch. 11, 2;
+     _supra_, Sec. 54. In Russia, nearly 80 per cent. of the
+     population live immediately from agriculture; in Great
+     Britain, in 1835, only 35; in 1821, only 33; in 1831, only
+     31-1/2; in 1841, only 26 per cent. (_Porter._) According to
+     _Marshall_, there were, in 1831, in British Europe,
+     1,116,000 persons who lived from their rents, etc. In
+     Ireland, there were, in 1831, over 65 per cent. of the
+     population engaged in agriculture (_Porter_); in 1841, even
+     66 per cent.]
+
+     [Footnote 214-7: In Paris, in 1834, the average income per
+     capita was estimated to be 1,029.9 francs, of which 46
+     francs were paid out for service; 55.7 for education; 11.5
+     for physicians' services, etc.; 7 on theatrical shows; 36
+     for washing; 13.6 for public purposes. (_Dingler_, Polyt.
+     Journal, LIII, 464.) According to _Ducpetiaux_, Budgets
+     economiques des Classes ouvrieres en Belgique, 1855, and
+     _Engel_, Saechs. Statist. Ztschr., 1857, 170, the
+     proportional percentage of family expenses for the following
+     articles of consumption is:
+
+     =======================+=========================================
+                            |             EXPENSES OF
+                            +--------------------+----------+---------
+                            |  _a laborer's_     | _family_ |_a well-_
+                            |  _family_          | _of the_ |_to-do_
+     _Consumption Purpose._ |  _in comfortable_  | _middle_ |_family._
+                            |  _circumstances._  | _class._ |
+                            +----------+---------+----------+---------
+                            |    _In_  |  _In_   |  _In_    |  _In_
+                            |_Belgium._|_Saxony._|_Saxony._ |_Saxony._
+                            |   _per_  |  _per_  |  _per_   |  _per_
+                            |  _cent._ | _cent._ | _cent._  | _cent._
+     -----------------------+----------+---------+----------+---------
+     Food,                  |  61 \    | 62 \    |  55 \    |  50 \
+     Clothing,              |  15 }    | 16 } 95 |  18 } 90 |  18 } 85
+     Shelter,               |  10 } 95 | 12 }    |  12 }    |  12 }
+     Heating and lighting,  |   5 }    |  5 /    |   5 /    |   5 /
+     Utensils and tools,    |   4 /    |         |          |
+                            |          |         |          |
+     Education, instruction,|   2 \    |  2 \    | 3.5 \    | 5.5 \
+     Public security,       |   1 }  5 |  1 }  5 | 2   } 10 | 3   } 15
+     Sanitary purposes,     |   1 }    |  1 }    | 2   }    | 3   }
+     Personal services,     |   1 /    |  1 /    | 2.5 /    | 3.5 /
+     =======================+==========+=========+==========+=========
+
+     Hence _Engel_ thinks that when the articles of food,
+     clothing, shelter, heating and lighting have become dearer
+     by 50 per cent., and other wants have not, and it is desired
+     to proportionately increase the salaries of officials,
+     salaries of 300, 600 and 1,000 thalers should be raised to
+     427.5, 800 and 1,275 thalers respectively. (Preuss. Statist.
+     Zeitschr., 1875.) _E. Herrmann_, Pricipien der Wirthsch.,
+     106, estimates that in all Europe, 45.6 of all consumption
+     is for food, 13.2 for clothing, 5.7 for shelter, 4.6 for
+     furnishing, 5.3 for heating and lighting, 2.6 for tools and
+     utensils, 13.3 for public security, 6.6 for purposes of
+     recreation. Compare _Leplay_, Les Ouvriers Europeens, 1855,
+     and _v. Prittwitz_, Kunst reich zu werden, 487 ff. The
+     expenses for shelter, service and sociability are specially
+     apt to increase with an increase of income.]
+
+     [Footnote 214-8: The necessity of an equilibrium between
+     production and consumption was pretty clear to many of the
+     older political economists. Thus, for instance, _Petty_
+     calls the coarse absence of the feeling of higher wants
+     among the Irish the chief cause of their idleness and
+     poverty. Similarly _Temple_, Observations on the N.
+     Provinces, ch. 6, in which Ireland and Holland are compared
+     in this relation. _North_, Discourses upon Trade, 14 seq.;
+     Potscr. _Roscher_, Zur Geschichte der english.
+     Volswirthschaftslehre, 83, 91, 127 ff. _Becher_, polit.
+     Discurs., 1668, 17 ff., was of opinion that the principal
+     cause keeping the three great estates together, the very
+     soul of their connection, was consumption. Hence the peasant
+     lived from the tradesman, and the tradesman from the
+     merchant. (_Boisguillebert_, Detail de la France, I, 4, II,
+     9, 21.) According to _Berkeley_, Querist, No. 20, 107, the
+     awakening of wants is the most probable way to lead a people
+     to industry. And so _Hume_, loc. cit., _Forbonnais_,
+     Elements du Commerce, I, 364. The Physiocrates were in favor
+     of active consumption. Thus _Quesnay_, Maximes generales, 21
+     seq.; _Letrosne_, De l'Interet social, I, 12. _La
+     reproduction et la consommation sont reciproquement la
+     mesure l'une de l'autre._ Some of them considered
+     consumption even as the chief thing (_Mirabeau_, Philosophie
+     rurale, ch. 1), which could never be too great. Further,
+     _Verri_, Meditazioni, I, 1-4. _Buesch_, Geldumlauf, III, 11
+     ff.
+
+     The moderns have frequently inequitably neglected the
+     doctrine of consumption. Thus it appears to be a very
+     characteristic fact that in _Adam Smith's_ great book, there
+     is no division bearing the title "consumption," and in the
+     Basel edition of 1801, that word does not occur in the
+     index. _Droz_ says that in reading the works of certain of
+     his followers, one might think that products were not made
+     for the sake of man, but man for their sake. But, on the
+     other hand, there came a strong reaction with _Lauderdale_,
+     Inquiry, ch. 5; _Sismondi_, N. Principes, L., II, passim;
+     _Ganilh_, Dictionnaire Analytique, 93 ff., 159 ff.; but
+     especially, and with important scientific discoveries,
+     _Malthus_, Principles, B. II. _St. Chamans_, Nouvel Essai
+     sur la Richesse des Nations, 1824, is an exaggerated
+     caricature of the theory of consumption. For instance, he
+     resolves the income of individuals into foreign demand or
+     the demand of strangers (29); considers the first condition
+     of public credit to lie in the making of outlay (32); and
+     even calls entirely idle consumers productive, for the
+     reason that they elevate by their demand a _utilite
+     possible_, to the dignity of a _utilite reelle_ (286 ff.)
+     The view advocated by Mirabeau, and referred to above, again
+     represented by _E. Solly_, Considerations on Political
+     Economy, 1814, and by _Weishaupt_, Ueb. die Staatsausgaben
+     und Auflagen, 1819. And so according to _Carey_, Principles,
+     ch. 35, Sec. 6, the real difficulty does not lie in production,
+     but in finding a purchaser for the products. But he
+     overlooks the fact here that only the possessor of other
+     products can appear as a purchaser. From another side, most
+     socialists think almost exclusively of the wants of men, and
+     scarcely consider it worth their while to pay any attention
+     to the means of satisfying them.]
+
+
+SECTION CCXV.
+
+NECESSITY OF THE PROPER SIMULTANEOUS DEVELOPMENT OF PRODUCTION AND
+CONSUMPTION.
+
+Hence, one of the most essential conditions of a prosperous national
+economy is that the development of consumption should keep equal pace
+with that of production, and supply with demand.[215-1] The growth of a
+nation's economy naturally depends on this: that production should
+always be, so to speak, one step in advance of consumption, just as the
+organism of the animal body grows from the fact that the secretions
+always amount to something less than the amount of additional nutrition.
+A preponderance of secretions would here be disease; but so would be a
+too great preponderance of nutrition. Now, the politico-economical
+disease which is produced by the lagging behind of consumption and by
+the supply being much in advance of the demand, is called a commercial
+(market) crisis. Its immediate consequence is, that for a great many
+commodities produced, no purchasers can be found. The effect of this is
+naturally to lower prices. The profit of capital and wages diminish. A
+transition into another branch of production, not overcrowded, is either
+not possible at all or is attended with care, great difficulties and
+loss. It is very seldom that all these disadvantages are confined to the
+one branch in which the disease had its original seat. For, since the
+resources of the one class of producers have diminished, they cannot
+purchase as much from others as usual. The most distant members of the
+politico-economic body may be thereby affected.[215-2]
+
+     [Footnote 215-1: _Boisguillebert_ lays the greatest weight
+     on the harmony of the different branches of commerce.
+     _L'equilibre l'unique conservateur de l'opulence generale_;
+     this depends on there being always as many sales as
+     purchases. The moment one link in the great chain suffers,
+     all the others sympathise. Hence he opposes all taxation of
+     commodities which would destroy this harmony. (Nature des
+     Richesses, ch. 4, 5, 6; Factum de la France, ch. 4; Tr. des
+     Grains I, 1.) _Canard_ Principes d'E. politique, ch. 6,
+     compares the relation between production and consumption in
+     national economy with that between arteries and veins in the
+     animal body. On the other hand, _Sismondi_, N. Principes I,
+     381, describes the bewilderment and want which are wont to
+     arise when one wheel of the great politico-economical
+     machine turns round more rapidly than the others.]
+
+     [Footnote 215-2: Thus, for instance, an occasional
+     stagnation of the cotton factories of Lancashire has
+     frequently the effect of "making all England seem like a
+     sick man twisting and turning on his bed of pain." (_L.
+     Faucher._)]
+
+
+SECTION CCXVI.
+
+COMMERCIAL CRISES IN GENERAL.--A GENERAL GLUT.
+
+The greater number of such crises are doubtless special; that is, it is
+only in some branches of trade that supply outweighs demand. Most
+theorists deny the possibility of a general glut, although many
+practitioners stubbornly maintain it.[216-1] J. B. Say relies upon the
+principle that in the sale of products, as contradistinguished from
+gifts, inheritances, etc., payment can always be made only in other
+products. If, therefore, in one branch there be so much supplied that
+the price declines; as a matter of course, the commodity wanted in
+exchange will command all the more, and, therefore, have a better vent.
+In the years 1812 and 1813, for instance, it was almost impossible to
+find a market for dry goods and other similar products. Merchants
+everywhere complained that nothing could be sold. At the same time,
+however, corn, meat and colonial products were very dear, and,
+therefore, paid a large profit to those who supplied them.[216-2] Every
+producer who wants to sell anything brings a demand into the market
+exactly corresponding to his supply. (_J. Mill._) Every seller is _ex vi
+termini_ also a buyer; if, therefore production is doubled, purchasing
+power is also doubled. (_J. S. Mill._) Supply and demand are in the last
+analysis, really, only two different sides of one and the same
+transaction. And as long as we see men badly fed, badly clothed, etc.,
+so long, strictly speaking, shall we be scarcely able to say that too
+much food or too much clothing has been produced.[216-3]
+
+     [Footnote 216-1: When those engaged in industrial pursuits
+     speak of a lasting and ever-growing over-production, they
+     have generally no other reason for their complaints than the
+     declining of the rate of interest and of the undertaker's
+     profit which always accompany an advance in civilization.
+     Compare _J. S. Mill_, Principles, III, ch. 14, 4. However,
+     the same author, I, 403, admits the possibility of something
+     similar to a general over-production.]
+
+     [Footnote 216-2: _Say's_ celebrated Theorie des Debouches,
+     called by McCulloch his chief merit, Traite, I, ch. 15. At
+     about the same time the same theory was developed by _J.
+     Mill_, Commerce defended, 1808. _Ricardo's_ express
+     adhesion, Principles, ch. 21. Important germs of the theory
+     may be traced much farther back: _Melon_, Essai politique
+     sur le Commerce, 1734, ch. 2; _Tucker_, On the
+     Naturalization Bill, 13; Sketch of the Advance and Decline
+     of Nations, 1795, 182.]
+
+     [Footnote 216-3: Precisely the same commercial crisis, that
+     of 1817 seq., which more than anything else led _Sismondi_
+     to the conclusion that too much had been produced in all
+     branches of trade, may most readily be reduced to _Say's_
+     theory.
+
+     There was then a complaint, not only in Europe but also in
+     America, Hindoostan, South Africa and Australia, of the
+     unsaleableness of goods, overfull stores, etc.; but this,
+     when more closely examined, was found to be true only of
+     manufactured articles and raw material, of clothing and
+     objects of luxury; while the coarser means of subsistence
+     found an excellent market, and were sold even at the highest
+     prices. Hence, in this case, there was by no means any such
+     thing as over-production. The trouble was that in the
+     cultivation of corn and other similar products, too little
+     was produced. There was a bad harvest even in 1816.
+
+     The most important authorities in favor of the possibility
+     of a general glut are _Sismondi_, N. Principes, IV, ch. 4,
+     and in the Revue encyclopedique, Mai, 1824: Sur la Balance
+     des Consommations avec les Productions. Opposed by Say in
+     the same periodical (Juilliet, 1824); where the controversy
+     was afterwards reopened in June and July, 1827, by
+     _Sismondi_ and _Dunoyer_. Compare Etudes, vol. I; _Ganilh_,
+     Theorie, II, 348 ff.; _Malthus_, Principles, II, ch. 1, 8.
+     Compare _Rau_, _Malthus_ and Say, ueber die Ursachen der
+     jetzigen Handelsstockung, 1821. _Malthus'_ views were
+     surpassed by _Chalmers_, On Political Economy in Connexion
+     with the moral State of Society, 1832. But even _Malthus_
+     himself in his Definitions, ch. 10, No. 55, later, so
+     defined a "general glut" that there could be no longer
+     question of his holding to its universality. For an
+     impartial criticism, see especially _Hermann_, Staatsw.
+     Untersuchungen, 251, and _M. Chevalier_, Cours, 1, Lecon,
+     3.]
+
+
+SECTION CCXVII.
+
+COMMERCIAL CRISES IN GENERAL.
+
+All these allegations are undoubtedly true, in so far as the whole world
+is considered one great economic system, and the aggregate of all goods,
+including the medium of circulation, is borne in mind. The consolation
+which might otherwise lie herein is made indeed to some extent
+unrealizable by these conditions. It must not be forgotten in practice
+that men are actuated by other motives than that of consuming as much as
+possible.[217-1] As men are constituted, the full consciousness of this
+possibility is not always found in connection with the mere power to do,
+to say nothing of the will to do.[217-2] There are, everywhere, certain
+consumption-customs corresponding with the distribution of the national
+income. Every great and sudden change in the latter is therefore wont to
+produce a great glut of the market.[217-3] The party who in such case
+wins, is not wont to extend his consumption as rapidly as the loser has
+to curtail his; partly for the reason that the former cannot calculate
+his profit as accurately as the latter can his loss.[217-4]
+
+Thus laws, the barriers interposed by tariffs, etc., may hinder the
+too-much of one country to flow over into the too-little of another.
+England, for instance might be suffering from a flood of manufactured
+articles and the United States from an oppressive depreciation in the
+value of raw material; but the tariff-laws places a hermetic dike
+between want on one side and superfluity on the other. Strong national
+antipathies and great differences of taste stubbornly adhered to may
+produce similar effects; for instance between the Chinese and Europeans.
+Even separation in space, especially when added to by badness of the
+means of transportation may be a sufficient hinderance especially when
+transportation makes commodities so dear that parties do not care to
+exchange. In such cases, it is certainly imaginable that there should be
+at once a want of proper vent or demand for all commodities; provided,
+we look upon each individual class of commodities the world over as one
+whole, and admit the exception that in individual places, certain parts
+of the whole more readily find a market because of the general crisis.
+
+Lastly, the mere introduction of trade by money destroys as it were the
+use of the whole abstract theory.[217-5] So long as original barter
+prevailed, supply and demand met face to face. But by the intervention
+of money, the seller is placed in a condition to purchase only after a
+time, that is, to postpone the other half of the exchange-transaction as
+he wishes. Hence it follows that supply does not necessarily produce a
+corresponding demand in the real market. And thus a general crisis may
+be produced, especially by a sudden diminution of the medium of
+circulation.[217-6] And so, many very abundant harvests, which have
+produced a great decline in the value of raw material, and no less so a
+too large fixation of capital which stops before its completion,[217-7]
+may lead to general over-production. In a word, production does not
+always carry with itself the guaranty that it shall find a proper
+market, but only when it is developed in all directions, where it is
+progressive and in harmony with the whole national economy. To use
+Michel Chevalier's expression, the saliant angles of the one-half must
+correspond to the re-entrant angles of the other, or confusion will
+reign everywhere. Even in individual industrial enterprises, the proper
+combination of the different kinds of labor employed in them is an
+indispensable condition of success. Let us suppose a factory in which
+there are separate workmen occupied with nothing but the manufacture of
+ramrods. If these now exceed the proper limits of their production and
+have manufactured perhaps ten times as many ramrods as can be used in a
+year, can their colleagues, employed in the making of the locks or
+butt-ends of the gun, profit by their outlay? Scarcely. There will be a
+stagnation of the entire business, because part of its capital is
+paralyzed, and all the workmen will suffer damage.[217-8] [217-9]
+
+     [Footnote 217-1: As _Ferguson_, History of Civil Society,
+     says, the person who thinks that all violent passions are
+     produced by the influence of gain or loss, err as greatly as
+     the spectators of Othello's wrath who should attribute it to
+     the loss of the handkerchief.]
+
+     [Footnote 217-2: If all the rich were suddenly to become
+     misers, live on bread and water, and go about in the
+     coarsest clothing, etc., it would not be long before all
+     commodities, the circulating medium excepted, would feel the
+     want of a proper market--all, including even the most
+     necessary means of subsistence, because a multitude of
+     former consumers, having no employment, would be obliged to
+     discontinue their demand. Over-production would be greater
+     yet if a great and general improvement in the industrial
+     arts or in the art of agriculture had gone before. Compare,
+     _Lauderdale_ Inquiry, 88. This author calls attention to the
+     fact that a market in which the middle class prevails must
+     put branches of production in operation very different from
+     those put in operation where there are only a few over-rich
+     people, and numberless utterly poor ones: England, the
+     United States--the East Indies, and France before the
+     Revolution. (Ch. 5, especially p. 358.)]
+
+     [Footnote 217-3: If England, for instance, became bankrupt
+     as a nation, the country would not therefore become richer
+     or poorer. The national creditors would lose about
+     L28,000,000 per annum, but the taxpayers would save that sum
+     every year. Now, of the former, there are not 300,000
+     families; of the latter there are at least 5,000,000. Hence,
+     the loss would there amount to L100 a family per annum, and
+     the gain here to not L6 per family. We may therefore assume
+     with certainty that the two items would not balance each
+     other as to consumption. The creditors of the nation, a
+     numerous, and hitherto a largely consuming class, now
+     impoverished, would be obliged to curtail their demand for
+     commodities of every kind to a frightful extent; while a
+     great many taxpayers would not feel justified in basing an
+     immediate increase of their demand on so small a saving.
+     Other revolutions, more political in character, may operate
+     in the same direction by despoiling a brilliant court, a
+     luxurious nobility or numerous official classes of their
+     former income.]
+
+     [Footnote 217-4: The above truth has been exaggerated by
+     Malthus and his school into the principle that a numerous
+     class of "unproductive consumers," who consume more than
+     they produce, is indispensable to a flourishing national
+     economy. From this point of view, the magnitude of England's
+     debt especially has been made a subject of congratulation.
+     Compare _Malthus_, Principles, II, ch. 1, 9. Similarly
+     _Ortes_, E. N., III, 17, to whom even the _impostori
+     mezzani_ and _ladri_ seem to be a kind of necessity. (III,
+     23.) _Chalmers_, Political Economy, III ff. If it was only
+     question of consumption here, all that would be needed would
+     be to throw away the commodities produced in excess. Those
+     writers forget that a consumer, to be desirable, should be
+     able to offer counter-values.]
+
+     [Footnote 217-5: _Malthus_, Principles, II, ch. 1, 3.]
+
+     [Footnote 217-6: Let us suppose a country which has been
+     used to effecting all its exchanges by means of
+     $100,000,000. All prices have been fixed, or have regulated
+     themselves accordingly. Let us now suppose that there has
+     been a sudden exportation of $10,000,000, and under such
+     circumstances as to delay the rapid filling up of the gap
+     thus created. In the long run, the demand of a country for a
+     circulation may be satisfied just as well with $90,000,000
+     as with $100,000,000; only it is necessary in the first
+     instance that the circulation should be accelerated or that
+     the price of money should rise 10 per cent. But neither of
+     these accommodations is possible immediately. In the
+     beginning, sellers will refuse to part with their goods 10
+     per cent. cheaper than they have been wont to. But so long
+     as those engaged in commercial transactions have not become
+     completely conscious of the revolution which has taken place
+     in prices, and do not act accordingly, there is evidently a
+     certain ebb in the channels of trade, and simultaneously in
+     all. Demand and supply are kept apart from each other by the
+     intervention of a generally prevailing error concerning the
+     real price of the medium of circulation, and there must be,
+     although only temporarily, buyers wanted by every seller,
+     except the seller of money. In a country with a paper
+     circulation, every great depreciation of the value of the
+     paper money not produced by a corresponding increase of the
+     same, may produce such results. _Say_ is wrong when he says
+     that a want of instruments of exchange may be always
+     remedied immediately and without difficulty.]
+
+     [Footnote 217-7: Suppose a people, the country population of
+     which produce annually $100,000,000 in corn over and above
+     their own requirements, and thus open a market for those
+     engaged in industrial pursuits to the extent of
+     $100,000,000. And suppose that in consequence of three
+     plentiful harvests, and because of an inability to export,
+     the market should grow to be over-full, to such an extent
+     that the much greater stores of corn have now (Sec. 5, 103) a
+     much smaller value in exchange than usual. The latter may
+     have declined to $70,000,000. Hence the country people now
+     can buy from the cities only $70,000,000 of city wares. The
+     cities, therefore, suffer from over-production. That people
+     dispensing with the use of money should establish an
+     immediate trade between wheat and manufactured articles, in
+     which case the latter would exchange against a large
+     quantity of the former, is not practicable, because no one
+     can extend his consumption of corn beyond the capacity of
+     his stomach, and the storage of wheat with the intention of
+     selling it when the price advances is attended with the
+     greatest difficulties.]
+
+     [Footnote 217-8: If, for instance, there are too many
+     railroads in process of construction, all other commodities
+     may in consequence lose in demand, and when the further
+     construction begins to be arrested on account of a
+     superfluity of roads, the new rail factories, etc. are
+     involved in the crisis.]
+
+     [Footnote 217-9: On the special pathology and therapeutics
+     of this economic disease, compare _Roscher_, Die
+     Productionskrisen, mit besonderer Ruecksicht auf die letzen
+     Jahrzente in the Gegenwart, Brockhaus, 1849, Bd., III, 721
+     ff., and his Ansichten der Volkswirthschaft, 1861, 279 ff.]
+
+
+SECTION CCXVIII
+
+PRODIGALITY AND FRUGALITY.
+
+Prodigality is less odious than avarice, less irreconcilable with
+certain virtues, but incomparably more detrimental to a nation's
+economy. The miser's treasures, even when they have been buried, may be
+employed productively, at least, after his death; but prodigality
+_destroys_ resources. So, too, avarice is a repulsive vice, extravagance
+a seductive one. The practice of frugality[218-1] in every day life is
+as far removed from one extreme as the other. It is the "daughter of
+wisdom, the sister of temperance and the mother of freedom." Only with
+its assistance can liberality be true, lasting and successful. It is, in
+short, reason and virtue in their application to consumption.[218-2]
+[218-3]
+
+     [Footnote 218-1: Negatively: the principle of sparing;
+     positively: the principle of making the utmost use of
+     things. (_Schaeffle_, Kapitalismus und Socialismus, 27.)]
+
+     [Footnote 218-2: Admirable description of economy in _B.
+     Franklin's_ Pennsylvanian Almanac, How poor Rich. Saunders
+     got rich; also in _J. B. Say_, Traite, III, ch. 5. _Adam
+     Smith_, W. of N., II, ch. 3, endeavors to explain why it is
+     that, on the whole and on a large scale, the principle of
+     economy predominates over the seductions of extravagance.
+     This, however, is true only of progressive nations.]
+
+     [Footnote 218-3: The Savior Himself in His miracles, the
+     highest pattern of economy: _Matth._, 14, 20; _Mark_, 6, 43;
+     8, 8; _Luke_, 9, 17; _John_, 6, 12. That He did not intend
+     to prohibit thereby all noble luxury is shown by passages
+     such as _Matth._, 26, 6 ff.; _John_, 2, 10.]
+
+
+SECTION CCXIX.
+
+EFFECT OF PRODIGALITY.
+
+Prodigality destroys goods which either were capital or might have
+become capital. But, at the same time, it either directly or indirectly
+increases the demand for commodities. Hence, for a time, it raises not
+only the interest of capital, but the prices of many commodities.
+Consumers naturally suffer in consequence; many producers make a profit
+greater than that usual in the country until such time as the
+equilibrium between supply and demand has been restored by an increase
+of the supply of the coveted products. But the capital of spendthrifts
+is wont to be suddenly exhausted; demand suddenly decreases, and
+producers suffer a crisis. As Benjamin Franklin says, he who buys
+superfluities will at last have to sell necessities. Thus the
+extravagance of a court may contribute to the rapid prosperity of a
+place of princely residence.[219-1] But it should not be forgotten that
+all the food-sap artificially carried there had to be previously
+withdrawn from the provinces. The clear loss caused by the destruction
+of wealth should also be borne in mind.[219-2] [219-3]
+
+     [Footnote 219-1: A rapid change of hands by money, as it is
+     called in every day life. See, _per contra_, _Tucker_,
+     Sermons, 31, 1774.]
+
+     [Footnote 219-2: Only the superficial observer is apt to
+     notice this apparent prosperity of the capital much more
+     readily than the decline of the rest of the country, which
+     covers so much more territory. In like manner, many wars
+     have had the appearance of promoting industry, for the
+     reason that some branches grew largely in consequence of the
+     increased demand of the state; but they grew at the expense
+     of all others which had to meet the increased taxes. Compare
+     _Jacob_ in _Lowe_, England nach seinem gegenwartigen
+     Zustande, 1823, cap. 2, 3; _Nebenius_, Oeffentlicher Credit,
+     I, Aufl., 419 ff.; _Hermann_, department of the Seine,
+     amounted, in 1850, to 497,000,000 francs; in the department
+     of the Bouches du Rhone, to 39,000,000 francs; in 1855, on
+     the other hand, they were, on account of the war,
+     887,000,000 francs and 141,000,000. (Journal des Econ.,
+     Juil., 1857, 32 ff.)]
+
+     [Footnote 219-3: The Journal des Economistes for March,
+     1854, very clearly shows, in opposition to the
+     state-sophists who recommended extravagant balls, etc. as a
+     means of advancing industry, and who even advocated the
+     paying officials higher salaries on this account, and making
+     greater outlays by them compulsory, that such luxury when it
+     comes of itself may be a symptom of national wealth, but
+     that it is a very bad means to produce prosperity
+     artificially.]
+
+
+SECTION CCXX.
+
+WHEN SAVING IS INJURIOUS.
+
+The act of saving, if the consumption omitted was a productive one, is
+detrimental to the common good; because now a real want of the national
+economy remains unsatisfied.[220-1] The effecting of savings by
+curtailing unproductive consumption may embarrass those who had
+calculated on its continuance. But its utility or damage to the whole
+national economy will depend on the application or employment of what is
+saved. Here two different cases are possible.
+
+A. It is stored up and remains idle. If this happens to a sum of money,
+the number of instruments of exchange in commerce is diminished. Hence,
+in consequence, there may be either a general fall in the price of
+commodities, or some commodities may remain unsold; that is, according
+to Sec. 217, a commercial crisis of greater or smaller extent.[220-2] If it
+be objects of immediate consumption that are stored up and lie idle,
+articles of food or clothing, for instance, the price of such
+commodities is wont to be raised by the new and unusual demand for them,
+precisely as it is lowered afterwards when the stores are suddenly
+opened and thrown upon the market.[220-3]
+
+B. If the saving effected be used to create fixed capital, there is as
+much consumption of goods, the same support of employed workmen, the
+same sale for industrial articles as in the previous unproductive
+consumption; only, there the stream is usually conducted into other
+channels. If a rich man now employs in house-building what he formerly
+paid out to mistresses; masons, carpenters, etc. earn what was formerly
+claimed by hair-dressers, milliners, etc.: there is less spent for
+truffles and champagne and more for bread and meat. The last result is a
+house which adds permanently either to personal enjoyment, or
+permanently increases the material products of the nation's
+economy.[220-4] And it is just so when the wealth saved is used as
+circulating capital. Here, the wealth saved is consumed in a shorter or
+longer time; and to superficial observers, this saving might seem like
+destruction; but it is distinguished from the last by this, that it
+always reproduces its full equivalent and more. However, the whole
+quantity of goods brought into the market by such new capital cannot be
+called its product. Only the use (_Nuetzung_) of the new capital can be
+so called; that is the holding together or the development in some other
+way of other forces which were already in existence until their
+achievements are perfected and ready for sale.[220-5] [220-6]
+
+     [Footnote 220-1: What evil influences such saving can have
+     may be seen from Prussian frugality in its military system
+     before 1806.]
+
+     [Footnote 220-2: The custom of burying treasure is produced
+     by a want of security (compare _Montanari_, Delia Moneta,
+     1683-87, 97 Cust.), and by an absence of the spirit which
+     leads to production. As _Burke_ says, where property is not
+     sacred, gold and silver fly back into the bosom of the earth
+     whence they came. Hence, in the middle ages, this custom was
+     frequent, and is yet, in most oriental despotic countries.
+     (_Montesquieu_, E. des L., XXII, 2.) And so in Arabia: _d'Arvieux_,
+     _Rosenmueller's_ translation, 61 seq. _Fontanier_, Voyage dans l'Inde
+     et dans le Golfe persique, 1644, I, 279. A Persian governor on his
+     death bed refused to give any information as to where he had buried
+     his treasure. His father had always murdered the slave who helped him
+     to bury his money or any part of it. (_Klemm_, Kulturgeschichte, VII,
+     220.) In lower stages of civilization, it is a very usual luxury to
+     have one's treasures buried with the corpse. In relation to David's
+     grave, see _Joseph._, Ant. Jud., VII, 15,3, XIII, 8, 4; XVI, 7, 1.
+     Hence the orientals believe that _every_ unknown ruin hides a
+     treasure, that every unintelligible inscription is a talisman to
+     discover it by, and that every scientific traveler is a
+     treasure-digger, (_v. Wrede_, R. in Hadhramaut, 113, 182 and
+     _passim_.) Similarly in Sicily. (_Rehfues_, Neuester Zustand von S.,
+     1807, I, 99.) In the East Indies every circumstance that weakens
+     confidence in the power of the government increases the frequency of
+     treasure-burial, as was noticed, for instance, after the Afghan
+     defeat. Treasure-burial by the Spanish peasantry (_Borrego_,
+     translated by Rottenkamp, 81), in Ireland (_Wakefield_, Account of I.
+     I, 593), in the interior of Russia (_Storch_, Handbuch, I, 142), and
+     among the Laplanders. The custom was very much strengthened among the
+     latter when, in 1813, they lost 80 per cent. by the bankruptcy of the
+     state through its paper money. (_Brooke_, Winter in Lapland, 1829,
+     119; compare _Blom_, Statistik von Norwegen, II, 205.) As during the
+     Thirty Years' War, so also in 1848, it is said that large amounts of
+     money were burned by the Silesian and Austrian peasantry. Much of it
+     is lost forever, but, on the whole, much treasure is wont to be found
+     where much is buried; governments there make it a regal right to
+     search for it.]
+
+     [Footnote 220-3: If the hoarding takes place in a time of superfluity,
+     and the restitution of the stores in a time of want, there is of
+     course no detrimental disturbance, but on the contrary the consequence
+     is a beneficent equilibrium of prices. This is the fundamental idea in
+     the storage of wheat.]
+
+     [Footnote 220-4: In the construction of national buildings, etc., we
+     have the following course of things: compulsory contributions made by
+     taxpayers, or an invitation to the national creditors to desist
+     somewhat from their usual amount of consumption, and to employ what is
+     saved in the building of canals, roads etc. In France, for instance,
+     after 1835, 100,000,000 francs per annum. (_M. Chevalier_, Cours, I,
+     109.) The higher and middle classes of England saved, not without much
+     trouble, however, between 1844 and 1858, L134,500,000 in behalf of
+     railway construction. _Tooke-Newmarch_.]
+
+     [Footnote 220-5: Such savings have sometimes been prescribed
+     by the state. In ancient Athens many prohibitions of
+     consumption in order to allow the productive capital to
+     first attain a certain height. Thus it was forbidden to
+     slaughter sheep until they had lambed, or before they were
+     shorn. (_Athen._, IX, 375, I. 9.) Similarly the old
+     prohibition of the exportation of figs. (Ibid., III, 74.)
+     Compare Petit. Leges. Atticae, V, 3. _Boeckh_,
+     Staatshaushaltung, I, 62 seq.]
+
+     [Footnote 220-6: The process of the transformation of
+     savings from a money-income, in a money-economy
+     (_Geldwirthschaft_), into other products, more closely
+     analyzed in _v. Mangoldt_, V. W. L., 152 ff.]
+
+
+SECTION CCXXI.
+
+LIMITS TO THE SAVING OF CAPITAL.
+
+It may be seen from the foregoing, that the mere saving of capital, if
+the nation is to be really enriched thereby, has its limits. Every
+consumer likes to extend his consumption-supply and his capital in use
+(_Gebrauchskapitalien_); but not beyond a certain point.[221-1] Besides,
+as trade becomes more flourishing, smaller stores answer the same
+purpose. And no intelligent man can desire his productive capital
+increased except up to the limit that he expects a larger market for his
+enlarged production. What merchant or manufacturer is there who would
+rejoice or consider himself enriched, if the number of his customers and
+their desire to purchase remaining the same, he saw his stores of
+unsaleable articles increase every year by several thousands?
+
+This is another difference between national resources or world resources
+and private resources. The resources of a private person, which are only
+a link in the whole chain of trade, and which are, therefore, estimated
+at the value in exchange of their component parts should, indeed, always
+be increased by savings made. (Sec. 8.) For even the most excessive
+increase of supply in general, which largely lowers the price of a whole
+class of commodities, will never reduce the price of individual
+quantities of that commodity below zero, and scarcely to zero. It is
+quite otherwise in the case of national or world resources which must be
+estimated according to the value in use of their component parts. Every
+utility supposes a want. Where, therefore, the want of a commodity has
+not increased, and notwithstanding there is a continuing increase in the
+supply, the only result must be a corresponding decrease in the utility
+of each individual part.[221-2]
+
+If a people were to save all that remained to them over and above their
+most urgent necessities, they would soon be obliged to seek a wider
+market in foreign countries, or loan their capital there; but they would
+make no advance whatever in higher culture nor add anything to the
+gladness of life.[221-3] On the other hand, if they would not save at
+all, they would be able to extend their enjoyments only at the expense
+of their capital and of their future. Yet these two extremes find their
+correctives in themselves. In the former case, a glut of the market
+would soon produce an increased consumption and a diminished production;
+in the latter the reverse. The ideal of progress demands that the
+increased outlay with increased production should be made only for
+worthy objects, and chiefly by the rich, while the middle and lower
+classes should continue to make savings and thus contribute to wipe out
+differences of fortune.[221-4]
+
+     [Footnote 221-1: Up to this point, indeed, wants increase
+     with the means of their satisfaction. The man who has two
+     shirts always strives to get a dozen, while the person who
+     has none at all, very frequently does not care for even one.
+     And so the person who has silver spoons generally desires
+     also to possess silver candle-sticks and silver plates. On
+     Lucullus' 5,000 chlamydes, see _Horat._, Epist., I, 6, 40
+     ff.]
+
+     [Footnote 221-2: That consumption and saving are not two
+     opposites which exclude each other is one of _Adam Smith's_
+     most beautiful discoveries. See Wealth of Nat., II, ch. 3.
+     But compare _Pinto_, Du Credit et de la Circulation, 1771,
+     335. Before his time most writers who were convinced of the
+     necessity of consumption were apologists of extravagance.
+     Thus _v. Schroeder_, F. Schatz- und Rentkammer, 23 seq. 47,
+     172. Louis XIV.'s saying: "A King gives alms when he makes
+     great outlays." According to _Montesquieu_, Esprit des Louis
+     VII., 4, the poor die of hunger when the rich curtail their
+     expenses. This view, which must have found great favor among
+     the imitators of Louis XIV. and Louis XV. was entertained to
+     some extent by the Physiocrates; for instance, _Quesnay_,
+     Maximes generales, 21 seq. Compare _Turgot_, Oeuvres, ed,
+     _Dare_, 424 ff. On the other hand, _Adam Smith_, loc. cit.
+     says that the spendthrift is a public enemy, and the person
+     who saves a public benefactor. _Lauderdale_, Inquiry, 219,
+     reacts so forcibly against the one-sidedness which this
+     involves that he believes no circumstance possible "which
+     could so far change the nature of things as to turn
+     parsimony into a means of increasing wealth." In his polemic
+     against Pitts' sinking fund as inopportune and excessive, he
+     assumes that all sums saved in that way are completely
+     withdrawn from the national demand. See per contra
+     _Hufeland_ n. Grundlegung I, 32, 238. _Sismondi_, N. P. II,
+     ch. 6, with his distinction between _production_ and
+     _revenu_, is more moderate; the former is converted into the
+     latter only in as much as it is "realized," that is, finds a
+     consumer who desires it, and pays for it. Now only can the
+     producer rely on anything; can he restore his productive
+     capital, estimate his profit, and use it in consumption, and
+     lastly begin the whole business over again.... A stationary
+     country must remain stationary in everything. It cannot
+     increase its capital and widen its market while its
+     aggregate want remains unaltered. (IV, ch. 1.)]
+
+     [Footnote 221-3: Thus _John Stuart Mill_ thinks that the
+     American people derive from all their progress and all their
+     favorable circumstances only this advantage: "that the life
+     of the whole of one sex is devoted to dollar-hunting, and of
+     the other to breeding dollar-hunters." (IV, ch. 6, 2.) In
+     the popular edition of 1865, after the experience of the
+     American civil war, he materially modified this judgment.]
+
+     [Footnote 221-4: _Storch_, Nationaleinkommen, 125 ff. That
+     there is at least not too much to be feared from the making
+     of too great savings is shown by _Hermann_, St. Untersuch.,
+     371 seq. On the other hand, there is less wealth destroyed
+     by spendthrifts than is generally supposed, for spendthrifts
+     are most frequently cheated by men who make savings
+     themselves. (_J. S. Mill_, Principles, I, ch. 5, 5.)]
+
+
+SECTION CCXXII.
+
+SPENDTHRIFT NATIONS.
+
+As there are extravagant and frugal individuals, so also are there
+extravagant and frugal nations. Thus, for instance, we must ascribe
+great national frugality to the Swiss. In many well-to-do families in
+that country, it is a principle acted upon to require the daughters to
+look to the results of their white sewing, instead of giving them
+pin-money; to gather up the crumbs after coffee parties in the presence
+of the guests, and to make soup of them afterwards, etc. Sons are
+generally neither supported nor helped to any great extent by their
+parents in their lifetime, and are required to found their own homes.
+They, therefore, grow rich from inheritance only late in years, when
+they are accustomed to a retired and modest mode of life, and have
+little desire, from mere convenience sake, to change it for another. And
+so Temple informs us that it never occurs to the Dutch that their outlay
+should equal their income; and when this is the case they consider that
+they have spent the year in vain. Such a mode of life would cost a man
+his reputation there as much as vicious excess does in other countries.
+The greatest order and the most accurate calculation of all outlay in
+advance is found in union with this; so that Temple assures us he never
+heard of a public or private building which was not finished at the time
+stipulated for in advance.[222-1]
+
+On the other hand, the Englishman lives rather luxuriantly. He is so
+used to enjoying comparative abundance, that when English travelers see
+the peasantry of the continent living in great frugality, they generally
+attribute it to poverty and not to their disposition to make savings. If
+England has grown rich, it is because of the colossal magnitude of its
+production, which is still more luxuriant and abundant than its
+consumption.[222-2] This contrast may be the effect in part of
+nationality and climate;[222-3] but it is certainly the effect in part
+also of a difference in the stage of civilization which these countries
+have respectively reached. The elder Cato had a maxim that a widow
+might, indeed, allow her fortune to diminish, but that it was a man's
+duty to leave more behind him than he had inherited.[222-4] And how
+prodigally did not the lords of the universe live in later times!
+
+     [Footnote 222-1: _Temple_, Observations on the U. Provinces,
+     Works, I, 136, 138 seq., 179. _Roscher_, Geschichte der
+     engl. Volkswirthschaftsl., 129. Thus, for instance, the
+     Richesse de Hollande, I, 305, describes a rich town near
+     Amsterdam in which a man with an income of 120,000 florins a
+     year expended probably only 1,000 florins per annum on
+     himself.]
+
+     [Footnote 222-2: As early a writer as _D. Defoe_, Giving
+     Alms no Charity! 1704, says: the English get estates; the
+     Dutch save them. An Englishman at that time with weekly
+     wages of 20 shillings just made ends meet; while a Dutchman
+     with the same grew rich, and left his children behind him in
+     very prosperous circumstances, etc. _L. Faucher_ draws a
+     similar contrast between his fellow countrymen and the
+     English. _Goethe's_ ingenuous observations (Werke, Bd., 23,
+     246, ed. of 1840) in his Italian journey, show that the
+     Italians, too, know how to save. _Molti pochi fanno un
+     assai!_ And so in Bohemia, the Czechs have a good reputation
+     for frugality, sobriety, etc. as workmen. They are more
+     frugal than the Germans, although all the larger businesses
+     belong to Germans, because when the Czech has saved
+     something, he prefers to return to his village to putting
+     his savings in jeopardy by speculation.]
+
+     [Footnote 222-3: Drunkenness a common vice of northern
+     people: thus in antiquity the Thracians (_Athen._, X, 42;
+     _Xenoph._, Exp. Cyri, VII, 3, 32), the Macedonians, for
+     instance, Philips (_Demosth._, Olynth., II, 23) and
+     Alexander's (_Plutarch_, Alex., 70; De Adulat, 13). To drink
+     like a Scythian, meant, among the Greeks, to drink like a
+     beast. (_Athen._, X, 427; _Herod._, VI, 84.) On North German
+     drunkenness in the 16th century, see _Seb. Muenster_,
+     Cosmogr., 326, 730. _Kantzow_, Pomerania, II, 128.]
+
+     [Footnote 222-4: _Plutarch_, Cato, I, 21.]
+
+
+SECTION CCXXIII.
+
+THE MOST DETRIMENTAL KIND OF EXTRAVAGANCE.
+
+The kind of extravagance which it is most natural we should desire to
+see put an end to, is that which procures enjoyment to no one. I need
+call attention only to the excessive durability and solidity of certain
+buildings. It is more economical to build a house that will last 60
+years for $10,000, than one which will last 400 years for $20,000; for
+in 60 years the interest saved on the $10,000 would be enough to build
+three such houses.[223-1] This is, of course, not applicable to houses
+built as works of art, or only to produce an imposing effect. The object
+the ancient Egyptians had in view in building their obelisks and
+pyramids continues to be realized even in our day.
+
+I might also call attention to the premature casting away of things
+used. Our national economy has saved incredible sums since rags have
+been manufactured into paper. In Paris 4,000 persons make a living from
+what they pick up in the streets.[223-2]
+
+     [Footnote 223-1: Compare _Minard_, Notions elementaires
+     d'Economie politique appliquee aux Travaux publics, 1850, 71
+     ff. He calls to mind the many strong castles of the age of
+     chivalry, the Roman aqueducts, theaters, etc., which are
+     still in a good state of preservation, but which can be used
+     by no one; so many bridges too narrow for our purposes, and
+     so many roads too steep. The sluices at Dunkirk, made 12.60
+     metres in width by Vauban, were made 16 meters wider in
+     1822, and still are too narrow for Atlantic steamships. In
+     England, private individuals have well learned to take all
+     this into account. Compare _J. B. Say_, Cours pratique,
+     translated by Morstadt, I, 454 ff.]
+
+     [Footnote 223-2: _Fregier_, Die gefaehrlichen Klassen,
+     translated 1840, I, 2, 38. In Yorkshire it is said that
+     woolen rags to the amount of L52,000,000 a year are
+     manufactured into useful articles. (_Tooke_,
+     Wool-Production, 196.) Compare The Use of Refuse: Quart.
+     Rev., April, 1868. On the ancient Greek ragpickers the
+     so-called spermologois, see _St. John_, The Hellenes, III,
+     91; on the Roman _Centonariis_: _Cato_, R. R., 135;
+     _Columella_, R. R., I, 8, 9; _Marquardt_, II, 476, V, 2,
+     187.]
+
+
+
+
+CHAPTER II.
+
+LUXURY.
+
+
+SECTION CCXXIV.
+
+LUXURY IN GENERAL.
+
+The idea conveyed by the word luxury is an essentially relative one.
+Every individual calls all consumption with which he can dispense
+himself, and every class that which seems not indispensable to
+themselves, luxury. The same is true of every age and nation. Just as
+young people ridicule every old fashion as pedantry, every new fashion
+is censured by old people as luxury.[224-1]
+
+But (Sec. I) a higher civilization always finds expression in an increased
+number and an increased urgency of satisfied wants. Yet, there is a
+limit at which new or intensified wants cease to be an element of higher
+civilization, and become elements of demoralization. Every immoral and
+every unwise want exceeds this limit.[224-2] Immoral wants are not only
+those the satisfaction of which wounds the conscience, but also those in
+which the necessities of the soul are postponed to the affording of
+superfluities to the body; and where the enjoyment of the few is
+purchased at the expense of the wretchedness of the many. And not only
+those are unwise or imprudent for which the voluntary outlay is greater
+than one's income, but those also where the indispensable is made to
+suffer for the dispensable.
+
+Thus it was in Athens, in the time of Demosthenes, when the festivities
+of the year cost more than the maintenance of the fleet; when Euripides'
+tragedies came dearer to the people than the Persian war in former
+times. There was even a law passed (Ol. 107,4) prohibiting the
+application of the dramatic fund to purposes of war under pain of
+death.[224-3]
+
+In the history of any individual people, it may be shown with
+approximate certainty at what point luxury exceeded its salutary limits.
+But in the case of two different nations, it is quite possible that what
+was criminal prodigality with the one, may have been a salutary
+enjoyment of life with the other; in case their economic
+(_wirthschaftlichen_) powers are different. Precisely as in the case of
+individuals, where for instance, the daily drinking of table wine may be
+simplicity in the rich and immoral luxury in the case of a poor father
+of a family.[224-4] Healthy reason has this peculiarity, that where
+people will not listen to it, it never hesitates to make itself felt.
+(_Benjamin Franklin._)[224-5]
+
+However, the luxury of a period always throws itself, by way of
+preference, on those branches of commodities which are cheapest.
+
+     [Footnote 224-1: _Stuart_, Principles, II, ch. 30,
+     _Ferguson_, History of Civil Society, VI, 2. Thus
+     _Dandolus_, Chron. Venet., 247, tells of the wife of a doge
+     at Constantinople who was so given to luxury that she ate
+     with a golden fork instead of her fingers. But she was
+     punished for this outrage upon nature: her body began to
+     stink even while she was alive. In the introduction to
+     _Hollinshed's_ Chronicon, 1557, there is a bitter complaint
+     that, a short time previous, so many chimneys had been
+     erected in England, that so many earthen and tin dishes had
+     been introduced in the place of wooden ones. Another author
+     finds fault that oak was then used in building instead of
+     willow, and adds that formerly the men were of oak but now
+     of willow. _Slaney_, On rural Expenditure, 41. Compare
+     _Xenoph._, Cyrop., VIII, 8, 17.]
+
+     [Footnote 224-2: Biblically determined: _Romans_, 13, 14.]
+
+     [Footnote 224-3: _Plutarch_, De Gloria Athen., 348.
+     _Athen._, XIV, 623. Petit. Legg. Att., 385.]
+
+     [Footnote 224-4: _Livy_, XXXIV, 6 ff.]
+
+     [Footnote 224-5: Most writers who have treated of luxury at
+     all have generally confined themselves to inquiring whether
+     it was salutary or reprehensible. Aristippus and
+     Antisthenes, Diogenes, etc.; Epicureans and Stoics. The
+     latter were reproached with being bad citizens, because
+     their moderation in all things was a hindrance to trade.
+     (_Athen._, IV, 163.) The Aristotelian _Herakleides_ declared
+     luxury to be the principal means to inspire men with
+     noble-mindedness; inspired by luxury, the Athenians
+     conquered at Marathon. (_Athen._, XII, 512.) _Pliny_ was one
+     of the most violent opponents of luxury. See _Pliny_, N. N.,
+     XXXIII, 1, 4, 13, and other places. The controversy has been
+     renewed by the moderns, especially since the beginning of
+     the 18th century, after luxury of every kind had previously
+     (for the most part on theological grounds, but also by
+     Hutten, for instance) been one-sidedly condemned. Among its
+     defenders were _Mandeville_, The Fable of the Bees, 1706,
+     who, however, calls everything a luxury which exceeds the
+     baldest necessities of life; _Voltaire_ in Le Mondain, the
+     Apologie du Luxe, and Sur L'Usage de la Vie; _Melon_, Essai
+     politique sur le Commerce, ch. 9; _Hume_, Discourses, No. 2,
+     On Refinement in the Arts; _Dumont_, Theorie du Luxe, 1771;
+     _Filangieri_, Delle Leggi politiche ed economiche, II, 37;
+     and the majority of the Mercantile school and of the
+     Physiocrates. Among the opponents of luxury, _J. J.
+     Rousseau_ towers over almost all others. Further, _Fenelon_,
+     Telemaque, 1699, L. XXII; _Pinto_, Essai sur le Luxe, 1762.
+
+     The reasons and counter-reasons advanced by those writers
+     apply not only to luxury but to the lights and shades of
+     high civilization in general. When a political economist
+     declares for or against luxury in general, he resembles a
+     doctor who should declare for or against the nerves in
+     general. There has been luxury in every country and in every
+     age. Among a healthy people, luxury is also healthy, an
+     essential element in the general health of the nation. Among
+     an unhealthy people luxury is a disease, and
+     disease-engendering.
+
+     For an impartial examination of the question, see
+     _Ferguson_, History of Civil Society, towards the end; see
+     also _Beckmann_, in _Justis'_ Grundsaetzen der Polizei, 1782,
+     Sec. 308; _Rau_, Ueber den Luxus, 1817; _Roscher_, Ueber den
+     Luxus, in the Archiv der Politischen Oekonomie, 1843, and in
+     his Ansichten der Volkswirthschaft, 1861, 399 ff.]
+
+
+SECTION CCXXV.
+
+THE HISTORY OF LUXURY.--IN THE MIDDLE AGES.
+
+During the middle ages, industry and commerce had made as yet but little
+progress. Hence it was as difficult then for luxury to be ministered to
+by fine furniture as by the products of foreign countries. Individual
+ornamental pieces, especially arms and drinking cups,[225-1] were wont
+to be the only articles of luxury. We have inventories of the domains of
+Charlemagne from which we find that in one of them, the only articles of
+linen owned were two bed-sheets, a table-cloth and a pocket
+handkerchief.[225-2] Fashion is here very constant; because clothing was
+comparatively dearer than at present. And so now in the East. In the
+matter of dwellings, too, more regard was had to size and durability,
+than to elegance and convenience. The palaces of Alfred the Great were
+so frailly built that the walls had to be covered with curtains as a
+protection against the wind, and the lights to be inclosed in
+lanterns.[225-3]
+
+Hence the disposition to use the products of the home soil as articles
+of luxury was all the greater, but more as to quantity than to
+quality.[225-4] Since the knight could personally neither eat nor drink
+a quantity beyond the capacity of his own stomach, he kept a numerous
+suite to consume his surplus. It is well known what a great part was
+played among the ancient Germans by their retinues of devoted servants
+(_comitatus_), which many modern writers have looked upon as
+constituting the real kernel of the migration of nations.
+
+In England, it was a maxim of state policy with Henry VII., whose reign
+there terminated the middle age, to prohibit the great liveried suites
+of the nobility (19 Henry VII., ch. 14) as Richard II., Henry IV. and
+Edward IV. had already attempted to do. But even under James I., we find
+ambassadors accompanied by a suite of 500 persons or 300
+noblemen.[225-5]
+
+The rich man welcomed every opportunity which enabled him to make others
+share in a dazzling manner the magnitude of his superfluous wealth:
+hence the numberless guests at weddings who were frequently entertained
+for weeks.[225-6] These festivities are memorable not because of the
+delicacies or great variety of the dishes, but because of their colossal
+magnitude. Even William of Orange, 1561, entertained at his wedding
+guests who had brought with them 5,647 horses; and he appeared himself
+with a suite of 1,100 men on horseback. There were consumed on the
+occasion 4,000 bushels of wheat, 8,000 of rye, 11,300 of oats, 3,600
+_eimers_ of wine, 1,600 barrels of beer.[225-7] In the ordinance of
+Muenden regulating weddings, promulgated in the year 1610, it is
+provided, that, at a large wedding there should not be over 24 tables,
+nor at a small one over 14, with 10 persons at each table.[225-8]
+
+The hospitality of the lower stages of civilization[225-9] must be
+ascribed as well to this peculiar kind of luxury as to mere good nature.
+Arabian chiefs have their noon-day table set in the street and welcome
+every passer-by to it.[225-10] (_Pococke._) And so, distinguished
+Indians keep an open cauldron on the fire cooking all the time, from
+which every person who comes in may help himself. (_Catlin._)
+
+Compared with this luxury of the rich, the poverty found side by side
+with it appears less oppressive. There is no great gap between the modes
+of life of the different classes.[225-11] This is the golden age of
+aristocracy, when no one questions its legitimateness. When, later, the
+nobleman, instead of keeping so many servants, begins to buy costly
+garments for himself, he, indeed, supports indirectly just as many and
+even more men; but these owe him nothing. Besides, in this last kind of
+luxury, it is very easily possible for him to go beyond his means, which
+is scarcely ever the case in the former.[225-12]
+
+     [Footnote 225-1: Here, as a rule, the value of the metal was
+     greater than the form-value; and hence the medieval
+     monasteries frequently made loans of silver vessels, where
+     of course, the form could not be taken into consideration.
+     On the other hand, in the case of the table service,
+     presented by the king of Portugal to Lord Wellington, the
+     metal cost L85,000 and the workmanship L86,000. (_Jacob_,
+     Gesch. der edlen Metalle, translated by Kleinschrod, II, 5.)
+     Compare _Hume_, History of England, ch. 44, App. 3.
+     Similarly under Louis XIV. (_Sismondi_, Hist. des Francais,
+     XXVII, 45.) When Rome was highly civilized, C. Gracchus paid
+     for very good silver ware, 15 times the value of the metal,
+     and L. Crassus, (consul 95 before Christ) 18 times its
+     value. _Mommsen_, R. Gesch. II, 383.]
+
+     [Footnote 225-2: _Specimen breviarii fiscalium Caroli
+     Magni_; compare _Anton_, Gesch. der deutschen Landwirthsch.
+     244 ff.]
+
+     [Footnote 225-3: _Turner_, History of the Anglo Saxons, VII,
+     ch. 6.]
+
+     [Footnote 225-4: In _Homer_, the kings live on nothing but
+     meat, bread and wine: compare _Athen._, I, 8. In the
+     saga-poetry of Iceland, _H. Leo_ does not remember to have
+     heard any other food mentioned except oat-pap, milk, butter
+     and cheese, fish, the flesh of domestic animals, and beer.
+     (_Raumer's_ Taschenbuch, 1835, 491)]
+
+     [Footnote 225-5: _Hume_, History of England, ch. 49, Append.
+     Similarly among all nations which have still preserved much
+     of the medieval. Thus the duke of Alba, about the end of the
+     last century, had not a single commodious hall in his
+     immense palace, but 400 rooms for his servants, since at
+     least all his old servants, and even their widows and
+     families, continued to live with him. In Madrid alone, he
+     paid L1,000 a month wages to his servants; and the son of
+     the duke, Medina-Celi, L4,000 per annum. (_Townsend_, II,
+     155, 158.) In many palaces in Moscow, previous to 1812,
+     there were 1,000 and more servants, unskillful, clad for the
+     most part as peasants, badly fed, and with so little to do
+     that perhaps one had no service to perform but to fetch
+     drinking water at noon, and another in the evening. Even
+     poor noblemen kept 20 and 30 servants, (_v. Haxthausen_,
+     Studien, I, 59.) _Forster_, Werke, VII, 347, explains Polish
+     luxury in servants, by the poorness of the servants there: a
+     good German maid could do more than three Polish servants.
+     Thus, in Jamaica, it was customary to exempt from the
+     slave-tax persons who kept fewer than 7 negroes. (_B.
+     Edwards_, History of the W. Indies, I, 229.) Compare _Livy_,
+     XXXIX, 11. The luxury of using torch-bearers instead of
+     candelabra lasted until Louis XIV.'s time. (_Rocquefort_,
+     Hist. de la Vie privee des Francais, III, 171.) Compare _W.
+     Scott_, Legend of Montrose, ch. 4.]
+
+     [Footnote 225-6: A Hungarian magnate, under king Sigismund,
+     celebrated his son's wedding for a whole year. (_Fessler_,
+     Gesch. von Ungarn, IV, 1267.)]
+
+     [Footnote 225-7: _Mueller_, Annal. Saxon, 68. Several
+     examples in _Sckweinichen's_ Leben von Buesching, I, 320 seq.
+     _Kruenitz_, Enclycopaedie, Bd. 82, 84 ff. The wedding of the
+     niece of Ottakar II. in 1264, has long been considered a
+     most brilliant event in the history of medieval luxury.
+     (_Palacky_, Gesch. von Boehmen, II, 191 ff.) Even yet, in
+     Abyssinia, on the occasion of royal feasts, only meat and
+     bread are eaten and mead drunk; but not only the great, but
+     even common soldiers are entertained one after the other.
+     (Ausland, 1846, No. 79.) Magnificent as was the table of a
+     West Indian planter, it was in some respects very simple. A
+     large ox was slaughtered for the feast, and everything had
+     to be prepared from that: roast beef, beef steaks, beef
+     pies, stews, etc. (_Pinckard_, Notes on the W. Indies, II.
+     100 ff.)]
+
+     [Footnote 225-8: _Spittler_, Geschichte Hanovers, I, 381.]
+
+     [Footnote 225-9: _Tacitus_, Germ., 21 Leg., says of the
+     Germans: _Convictibus et hospitiis non alia gens effusius
+     indulget. Quemcunque mortalium arcere tecto, nefas habetur.
+     Diem noctemque continuare potando, nulli probrum._]
+
+     [Footnote 225-10: Entirely the same among the ancient
+     Romans: _Valer. Max._, II, 5. Compare per _contra_,
+     _Euripid._, Herc. fur., 304 seq.]
+
+     [Footnote 225-11: Think of nomadic races especially, where
+     the rich can employ their wealth only to increase the number
+     of their partisans, for war purposes, etc.]
+
+     [Footnote 225-12: _Ferguson_, Hist. of Civil Society, VI, 3;
+     _Adam Smith_, Wealth of Nat., IV, ch. 4. Compare _Contzen_,
+     Politicorum, 1629, 662. As to how in the lower stages of
+     civilization, guests are used to supply the place of the
+     post-office service, see _Humboldt_, Relation hist., II,
+     61.]
+
+
+SECTION CCXXVI.
+
+LUXURY IN BARBAROUS TIMES.
+
+The luxury of that uncivilized age shows itself for the most part on
+particular occasions, and then all the more ostentatious, while in the
+periods following it, it rather permeates the whole of life. Even J.
+Moeser excuses our forefathers for their mad celebration of their
+_kirmesses_ and carnivals: _dulce est desipere in loco_, as Horace says,
+and that they sometimes carried it to the extent of drowning
+reason.[226-1] Among ourselves, the common man drinks brandy every day;
+in Russia, seldom, but then, to the greatest excess.[226-2] The well
+known peculiarity of feudal castles, that, besides one enormous hall,
+they were wont to have very small and inconvenient rooms for every day
+life, is accounted for in part by the great importance to them of festal
+occasions, and in part by the cordiality of the life led in them, in
+which lord and servants constituted one family. Nothing can be more
+erroneous than to ascribe great temperance in general to people in a low
+stage of civilization. Their simplicity is a consequence of their
+ignorance rather than of their self-control. When nomadic races have
+once tasted the cup of more delicate enjoyment, it is wont to hurry them
+to destruction.[226-3]
+
+     [Footnote 226-1: _Moeser_, Patr. Ph. IV, 7. On the feast of
+     fools and the feast of asses of the middle ages, compare
+     _Dutillet_, Memoire pour sevir a l'Histoire de la Fete des
+     Fous; _D. Sacchi_, Delle Feste popolari del medio Evo.
+     During the latter half of the 16th century, the first
+     Hannoverian minister received only 200 thalers salary and
+     pieces of clothing, while the wedding of a certain von
+     Saldern cost 5,600 thalers. (_Spittler_, Gesch. Hannovers,
+     I, 333.)]
+
+     [Footnote 226-2: _v. Haxthausen_, Studien, II, 450, 513.
+     Thus, in 1631, of those who had died suddenly, there were
+     957 who died of drunkenness. (_Bernouilli_, Populationistik,
+     303.) According to _v. Lengefeldt_, Russland im 19. Jahrh.,
+     42, the number is now 1,474 to 1,911 per annum. On Poland,
+     see _Klebs_, Landeskulturgesetzgebung in Posen, 78. When the
+     South American Indians begin to drink, they do not stop
+     until they fall down senseless. (_Ulloa_, Noticias
+     Americanas, ch. 17.) The old Romans considered all
+     barbarians to be drunkards. (_Plato_, De Legg., I, 638.) In
+     eating, also, uncivilized people are extremely irregular. A
+     Jackute or Tunguse consumes 40 pounds of meat; three men
+     devour a whole reindeer at a meal. (_Cochrane_, Fussreise,
+     156.) One ate in 24 hours the back quarter of a large ox, or
+     1/2 a _pud_ of fat, and drank an equal quantity of melted
+     butter. (_Klemm_, Kulturgeschichte, III, 18.) Similarly
+     among hunting races. See _Klemm_, I, 243, 339; II, 13, 255.
+     On the South Sea Islanders, see _Hawkesworth_, III, 505;
+     _Forster_, I, 255.]
+
+     [Footnote 226-3: Rapid degeneration of almost all barbaric
+     dynasties as soon as they have subjugated civilized
+     countries.]
+
+
+SECTION CCXXVII.
+
+INFLUENCE OF THE CHURCH AND OF THE CITY.
+
+The change in this situation takes place first of all in the churches
+and in the cities. The Church has passed through almost every stage of
+development in advance of the State; and civilization, both in the good
+and bad sense of the term, has become general, and gradually acclimated
+in the rural districts, through the influence of the cities. In the
+Church, the earliest art endeavored to reach the beautiful. There, we
+first find music, painting, sculpture, foreign perfumes, incense and
+variegated garments.[227-1] In the cities, growing industry introduces a
+more attractive style of clothing and a more ornamental style of
+household furniture. Commerce, beginning to thrive, raises foreign
+commodities into wants,[227-2] and thus the old luxury of feudal times
+is modified.[227-3] The large number of idle servants is diminished. All
+the more refined pleasures are extended downward to wider circles of the
+people. Instead of individual bards, rhapsodists, skalds and
+minnesingers, we have the beginnings of the theater, and instead of
+tournaments, the shooting matches. (_Freischiessen._)
+
+But it is remarkable how much earlier here pomp and splendor are
+considered than convenience. The Spanish _romanceros_ of the 12th
+century display wonderful splendor in their descriptions of the Cid, and
+the trousseau of his daughters. But, on the other hand, the wife of
+Charles VII. seems to have been the only French woman in the 15th
+century who had more than two linen chemises. Even in the 16th century,
+it frequently happened that a princess made a present to a prince of a
+single shirt. At this time the German middle class were wont to sleep
+naked.[227-4]
+
+Even now, half-civilized nations look more to the outward appearance of
+commodities than to their intrinsic value. Thus, for instance, in
+Russia, we find large numbers of porcelain services extravagantly
+painted and gilded, awkward, the material of which is full of blisters;
+damaskeened knives, gilt sad-irons and candle-snuffers with landscapes
+engraved on them: but nothing fits into anything else; the angles are
+vicious, the hinges lame, and the whole soon goes to pieces. And so,
+among export merchants in Bremen, for instance, it is a rule, on all
+their wares intended for America, to put a label made of very beautiful
+paper, with their coat-of-arms or firm-name in real silver, and to do
+the packing in as elegant a manner as possible.[227-5] Cloths intended
+for America are usually exceedingly light, destitute of solidity, but
+very well dressed. The cotton-printers who work for the African market
+prefer to employ false but cheap and dazzling colors.[227-6]
+
+     [Footnote 227-1: The use of window-glass in churches in
+     England dates from 674, in private houses from 1180.
+     (_Anderson_, Origin of Commerce, s. a.) Even in 1567, it was
+     so rare that during the absence of the lords from their
+     country seats, the panes were taken out and stored for safe
+     keeping. (_Eden_, State of the Poor, I, 77.) As to how
+     Scotland developed in this respect still later, see
+     _Buckle_, History of Civilization in England, II, 172.]
+
+     [Footnote 227-2: In our day, at the breakfast of a German of
+     the middle class, may be found East Indian coffee, Chinese
+     tea, West Indian sugar, English cheese, Spanish wine, and
+     Russian caviar, without any surprising degree of luxury.
+     Compare _Gellius_, N. A., VII, 16.]
+
+     [Footnote 227-3: In England, the transition is noticeable,
+     especially under Elizabeth: _Hume_ History, ch. 44, app. 3.
+     In France, under Louis XIV.; _Voltaire_, Siecle de Louis,
+     XIV., ch. 29.]
+
+     [Footnote 227-4: Poesias Castellanas anteriores al Siglo XV;
+     Tom. I, 347, 327. _Roscher_, loc. cit. _J. Voight_, in
+     _Raumer's_ historischem Taschenbuche, 1831, 290; 1835, 324,
+     seq. Thus, one of Henry VIII's wives, in order to get salad,
+     had first to send for a gardener from Flanders; while at the
+     time, a single ship imported into England from 3,000 to
+     4,000 pieces of clothing in gold brocade, satin or silk.
+     (_Anderson_, a. 1509, 1524, 4; Henry VIII, c. 6.)]
+
+     [Footnote 227-5: Irish linen, worth from 30 to 35 shillings,
+     is often provided with a label which cost 5 shillings.
+     (_Kotelmann_, Statistische Uebersicht der landwirthschaftl.
+     und industriellen Verhaeltnisse von Oestereich und dem
+     Zollverein, 215.)]
+
+     [Footnote 227-6: Compare _Kohl_, Reise in Deutschland, II,
+     18, 250. _Roscher_, in the Goettinger Studien, 1845, II, 403,
+     ff. About 1777, _Buesch_ described the difference of goods
+     manufactured in England "for the continent and home
+     consumption," as being just the same as the difference now
+     between goods for Africa and goods for Europe. (Darstellung
+     der Handlung, Zusatz, 89.)]
+
+
+SECTION CCXXVIII.
+
+HISTORY OF LUXURY IN HIGHLY CIVILIZED TIMES.
+
+The direction which luxury takes in times when civilization is advanced,
+is towards the real, healthy and tasteful enjoyment of life, rather than
+an inconvenient display. This tendency is exceedingly well expressed by
+the English word _comfort_, and it is in modern England that the luxury
+of the second period has found it happiest development. It is found side
+by side with frugality; and it frequently even looks like a return to
+the unaffected love of nature.[228-1]
+
+Thus, since Rousseau's time,[228-2] the so-called English gardens have
+dropped the former Versailles-Harlem style. Thus, too, modern fashion
+despises the awkward long wig, powdering etc.[228-3] Instead of garments
+embroidered, or faced with fur or lace, and instead of the galloon hat
+worn under Louis XIV. and Louis XV., the French revolution has
+introduced the simple citizen frock-coat and the round silk hat. The
+"exquisite" may even with these outshine others by the form he selects,
+the material he wears, or by frequent change, but much less strikingly
+than before.[228-4] Since every one, in the purchase of household
+furniture, etc., looks more to its use than to the honor of being sole
+possessor of an article or having something in advance of everybody
+else, it becomes possible for industry to manufacture its products in
+much larger quantities, and after the same model, and thus to furnish a
+much better article for the same price.[228-5] Besides, more recent
+industry has produced a multitude of cheap substitutes for costly
+objects of luxury: plated silver-leafing, cotton-velvet goods,
+etc.;[228-6] besides the many steel engravings, lithographs etc., which
+have exerted so beneficent an influence on aesthetic education.
+
+In the England of our days, the houses are comparatively small, but
+convenient and attractive, and the salutary luxury of spending the
+pleasant season in the country very general.[228-7] The country-roads
+are narrow but kept in excellent order and provided with good
+inns.[228-8] More value is here attached to fine linen cloth than to
+lace;[228-9] to a few but nourishing meat-dishes than to any number of
+sauces and confections of continental kitchens.[228-10] Especially is
+the luxury of cleanliness, with its morally and intellectually
+beneficial results found only in well-to-do and highly cultured nations.
+As formerly in Holland, so now in England, it is carried to the highest
+point of development. In the latter country, the tax on soap is
+considered a tax on an indispensable article.[228-11] The reverse is the
+case in North America, if we can believe the most unprejudiced and
+friendly observers.[228-12] The person who lives in a log-house must, to
+feel at ease within his four walls, first satisfy a number of necessary
+wants.[228-13]
+
+     [Footnote 228-1: The reformation of the sixteenth century
+     had a remarkable tendency towards natural and manful
+     fashions, as contradistinguished from the immediately
+     preceding and the immediately following periods. Compare _J.
+     Falke_, Deutsche Trachten und Modenwelt, II, 1858.]
+
+     [Footnote 228-2: _J. J. Rousseau_, N. Heloise, II, L. 11.
+     Compare _Keysler_, Reise, I, 695.]
+
+     [Footnote 228-3: That a similar transition marked an epoch
+     in the history of Grecian morals was recognized even by
+     _Thucydides_, I, 6; compare _Asios_, in _Athen._, XII, 528.]
+
+     [Footnote 228-4: It will always remain a want to own clothes
+     for every day wear and festal occasions. The frock coat
+     satisfies this want in the cheapest way. As soon as people
+     cease to distinguish clothing for festal occasions by the
+     cut, gold-embroidery, fur-facing, etc. will appear again,
+     which would necessarily prove a great hardship to the
+     propertyless classes of the educated, and even to the higher
+     classes.]
+
+     [Footnote 228-5: On the striking contrast presented in this
+     respect by the English and French, and even Russian customs,
+     see _Storch_, Handbuch, II, 179 ff. _J. B. Say_, Cours
+     pratique, translated into German by _Morstadt_, I, 435 ff.;
+     Deutsche Vierteljahrsschrift, 1853, I, 182.]
+
+     [Footnote 228-6: Paper-hangings, instead of costly gobelins
+     and leather hangings, were not known in France until after
+     1760, nor in the rest of Europe until much later. Busts of
+     plaster were (_Martial_, IX, 17, and _Juvenal_, II, 4) usual
+     among those who were less well off.]
+
+     [Footnote 228-7: Similarly even in _Giov. Villani_, XI, 93,
+     the villas of the highly cultured Florentines appear finer
+     than their city houses, while in Germany, at that time, even
+     the richest citizens lived only in the city.]
+
+     [Footnote 228-8: Sidewalks in the cities, recommended by _J.
+     J. Rousseau_, as a popular convenience and as a safeguard
+     against the carriage-aristocracy.]
+
+     [Footnote 228-9: In France, the luxury of lace was conquered
+     by Marie Antoinette, but still more effectually by the
+     Revolution. Previous to that time, many Parisians wore four
+     manchettes to each shirt. (_Palliser_, History of Lace,
+     1865.)]
+
+     [Footnote 228-10: During the middle ages, strongly seasoned
+     food, ragouts, etc., were more in favor than in even France
+     to-day; compare _Legrand d'Aussy et Roquefort_, Histoire de
+     la Vie privee des Francais, passim. The wine even, at that
+     time, used to be mixed with roots: _vin de romarin_,
+     _clairet_, _hippocras_, (_W. Wackernagel_, Kl. Schriften I,
+     86, 7.) The French kitchen became simpler and more natural,
+     only after the middle of the 18th century. (_Roquefort_,
+     III, 343.)]
+
+     [Footnote 228-11: The taxed consumption of soap amounted in
+     England in 1801 to 4.84 and in 1845, 9.65 pounds per capita.
+     (_Porter_, Progress of the Nation, V, 5, 579.) Soap-boiling
+     in London dates from 1520 only. Before that time, all white
+     soap was obtained from the continent. (_Howell_,
+     Londinopolis, 208.) _Erasmus_ charged that England, in his
+     time, was an exceedingly dirty country. The Italians, on the
+     other hand, were at that time greatly distinguished above
+     northern people, especially the Germans, by their
+     cleanliness. (_Buckhardt_, Kultur der Renaissance, 295.) The
+     Vienna river-baths after 1870, _Nicolai_, Reise, III, 17,
+     mentions as something deserving special note. The Leipzig
+     river-baths date from 1774.]
+
+     [Footnote 228-12: _Birkbeck_, Notes on America, 39. Even in
+     New York, it is not very long since there were no common
+     sewers. Just as characteristic is the uncleanliness of the
+     South African _boers_ (_Mauch_, in _Petermann's_
+     Mittheilungen, Ergaenz-Heft, XXVII, 23), when compared with
+     the celebrated cleanliness of the old Dutch.
+
+     Americans will certainly not agree with the "friendly
+     and unprejudiced" observers mentioned in the text; for
+     no one acquainted with genuine American home-life can
+     deny that cleanliness is an American characteristic. It
+     is only justice to the author to say that the above
+     note (12), so far as it relates to America, appeared in
+     the second edition of his work, and probably in the
+     first; and that he is not so much to be blamed for it
+     as the unfriendly and prejudiced, if not ignorant
+     observers. It may be said, however, that, from the use
+     of the word "log-house," in the context, the author
+     does not intend to apply this remark to the older
+     settlements.--TRANSLATOR.]
+
+     [Footnote 228-13: The most frightful uncleanliness prevails
+     among the inhabitants of polar countries, who never bathe,
+     because of the climate, avoid all ventilation, and because
+     of the leathern clothing which they smear with grease, etc.
+     The Tunguses consider the after-birth cooked or roasted as a
+     great delicacy. "Fathers and mothers wipe their children's
+     noses with their mouth, and gulp the secretion down."
+     (_Georgi_, Beschreib. aller Nationen des russ. Reiches, I,
+     287.) Among the Koruks, the suitor rinses his mouth with his
+     sweetheart's water. (loc. cit., I, 349, 353.) Compare
+     _Klemm_, Kulturgeschichte, III, 24, 57. In warmer climates,
+     even less civilized nations are clean, for instance in the
+     East and South-Sea Islands, etc. All the more surprising is
+     the uncleanliness of the Hottentots and Bushmen, where the
+     natural color is observable only under the eyes, where the
+     tears produced by too much smoke has washed away the crust
+     of dirt which, with this exception, covers the whole body.
+     (_Klemm_, Kulturgeschichte, 333.) How long it takes for
+     cleanliness to become a national trait, may be inferred from
+     the history of water-closets, when, for instance, their
+     introduction into every house during the 16th and even the
+     17th century, had to be provided for by law in Paris.
+     (_Beckmann_, Beitraege, II, 358 ff.) The Goettingen statutes
+     of 1342 had to expressly prohibit persons to _merdare_ in
+     public wine-cellars where persons ate and drank together.
+     (_Spittler_, Gesch. Hannovers, I, 57.) Similarly in the
+     courts of the German princes. On the other hand,
+     universality of water-closets in England to-day.
+
+     In ancient times, too, the uncleanliness of the Spartans in
+     body and clothing was very surprising to the Athenians:
+     _Xenoph._, Resp. Laced., II, 4; _Plutarch_, Lycurg, 16.
+     _Just._, Lac., 5. Still more that of many barbarians, for
+     instance of the Illyrians: _Stobaeus_, V, 51, 132; _Gaisf.
+     Aelian._, V, H. IV, 1. The ancient Romans bathed only once a
+     week (_Seneca_, Epist., 86), while under the Empire, "the
+     baths embraced and filled up the whole life of man and all
+     his wishes." (_Gerlach._) Compare _Becker_, Gallus, II, 10
+     ff.; _Lamprid_, V, Comm., 11.]
+
+
+SECTION CCXXIX.
+
+EXTENT OF LUXURY IN HIGHLY CIVILIZED TIMES.
+
+The luxury of this second period fills the whole of life and permeates
+every class of people. Hence we may most easily determine the degree of
+development a people have attained by the quantity of commodities of a
+finer quality which are, indeed, not indispensable to life, but which it
+is desirable should be consumed on as extensive a scale as possible by
+the nation, for the sake of the fullness of life and the
+freshness[229-1] of life to which they minister.
+
+Thus, for instance, as civilization has advanced, there has been almost
+everywhere a transition to a finer quality of the material of which
+bread is made. The number of consumers of white bread in France in 1700,
+was 33 per cent. of the population; in 1760, 40; in 1764, 39; in 1791,
+37; in 1811, 42; in 1818, 45; in 1839, 60 per cent.[229-2] About 1758,
+in England and Wales, 3,750,000 of people lived on wheat bread; on
+barley bread, 739,000; on rye bread, 888,000; on oat bread, 623,000. The
+cultured southeastern population had almost nothing but wheat bread,
+while in the north and northwest, oat bread continued to be used a long
+time; and in Wales only 10 per cent. of the population ate wheat bread.
+This condition of things in England has since been much improved. But,
+at the extremities of the Hebrides, nine-tenths of the population still
+live on barley bread; and in Ireland it was estimated, in 1838, that
+with 8,000,000 inhabitants, potatoes were the chief article of food of
+5,000,000, and oat bread of 2,500,000.[229-3]
+
+And so, the consumption of meat in cities is uniformly much larger than
+in the country. In the cities of the Prussian monarchy and subject to
+the slaughter-house tax, it amounted in 1846, per capita: in East
+Prussia, to 61 lbs.; in Pommerania, to 66; in Posen, to 70; in West
+Prussia, to 71; in Saxony, to 75; in the Rhine Province, to 83; in
+Silesia, to 86; in Brandenburg, to nearly 104; in Berlin alone, to 114:
+an average in the whole country, however, of scarcely 40 lbs. per
+capita. (_Dietrici._) In the kingdom of Saxony, the average consumption
+of beef and pork was, shortly before 1866, about 50 lbs.; in Dresden
+alone, 86.7; in Leipzig, 136.9 lbs.[229-4] The consumption of meat in
+England is exceedingly great, so that, for instance, in several orphan
+asylums in London, the daily meat ration amounts to an average of from
+0.23 to 0.438 lbs. The meat-consumption of a well-to-do family, children
+and servants included, Porter estimates at 370 lbs. per capita per
+annum. The meat ration of soldiers in the field amounts in England to
+676 grammes a day; in France, to 350.[229-5]
+
+The consumption of sugar in 1734, in England, was about 10 lbs. per
+capita; in 1845, in the whole of the British Empire, 20-1/3 lbs.; in
+1849, almost 25 lbs.; in 1865, over 34 lbs.; but it must not be
+overlooked here, that in Ireland the consumption of sugar per capita was
+scarcely over 8 lbs.[229-6] In the German Zollverein, the consumption of
+sugar, in 1834, amounted to an average of 2-1/2 lbs. per capita; in
+1865, to more than 9 lbs. In France, the consumption of the same article
+rose from 1.33 kilogrammes, the average from 1817 to 1821, to 7.35 lbs.
+in 1865.[229-7] The population of the Zollverein rose 25.8 per cent.
+between 1834 and 1847, while the importation of coffee increased 117.5
+per cent.; of spices, 58.2; southern fruits, 34.5, and cocoa, 246.2 per
+cent.[229-8]
+
+A great many of vegetables and fruits, which seem to us to be almost
+indispensable articles of subsistence, have been cultivated only a short
+time. Thus the English have been acquainted with artichokes, asparagus,
+several kinds of beans, salad, etc. only since 1660.[229-9] Even in
+France, the finer kinds of fruits have appeared on the tables of the
+middle class only since the beginning of the last century.
+
+The per capita consumption of wool in England, about a generation ago,
+amounted to about 4 lbs. a year; in Prussia to 1.67; of cloth, to 5.76
+and 2.17 ells; of leather, to 3.03 and 2.22 lbs. respectively.[229-10]
+Of silk goods, England consumes half as much as the rest of all Europe,
+and an Englishman from 5 to 6 times as much as a Frenchman, although
+England does not produce a single pound of raw silk.[229-11]
+
+     [Footnote 229-1: Thus, for instance, the modern enjoyments
+     of coffee, tea, newspapers, tobacco etc., promote
+     domesticity with which antiquity was so little acquainted.
+     _Zaccharia_, Vierzig Buecher, VI, 60.]
+
+     [Footnote 229-2: The food of the French people has improved
+     also in point of quantity. At the beginning of the
+     eighteenth century, of cereals there were 472 liters per
+     capita, at present there are 541 liters; and in addition,
+     now, 240 liters of potatoes and vegetables more than then.
+     Compare _Moreau de Joannes_, Statistique de l'Agriculture de
+     la France, 1848, and the same writer's Statistique cereale
+     de la France, in the Journal des Economistes, 1842, Janv. On
+     the recent decrease or increase in the consumption of meat,
+     see the very different estimates of _M. Chevalier_, Cours.,
+     I, 113 seq., and Journal des Economistes, Mars, 1856, 438
+     ff.]
+
+     [Footnote 229-3: _Ch. Smith_, Tracts on the Corn Trade,
+     1758, 182. _Eden_, State of the Poor, I, 563, seq. In
+     _McCulloch_, Statist, I, 316, 466 ff., 548. Moreover,
+     _Rogers_ says that English workmen in the middle ages, for
+     the most part, consumed wheat bread. (Statist. Journal,
+     1864, 73.) About the middle of the 13th century, only from
+     11 to 12 _malters_ of wheat were produced on the estates of
+     the bishop of Osnabrueck; about 470 of oats, 300 of rye, and
+     120 of barley. (_J. Moeser_, Osnabrueck, Gesch., Werke, VII,
+     2. 166.) Even beer was brewed from oats in the earlier part
+     of the middle ages. (_Guerard_, Polyptiques, I, 710 ff.) The
+     ancients, also, in their lower stages of civilization, lived
+     on barley bread by way of preference, and went over to wheat
+     only at a later period; compare _Plin._, H. N. XVIII, 14.
+     _Heracl._, Pont, fr. 2. _Athen._, IV., 137, 141. _Plutarch_,
+     Alcib., 23. As to how, in Rome, the transition from _far_ to
+     the much more costly _triticum_, was connected with the
+     extension of the hide of land from 2 to 7 _jugera_, see _M.
+     Voigt_ in the Rhein. Museum f. Philol., 1868.]
+
+     [Footnote 229-4: To this, in Saxony, must be added about
+     from 6 to 7 pounds of veal and mutton. The recent increase
+     in the consumption of meat in Saxony is very encouraging:
+     1840, about 30 lbs. of beef and pork per capita; 1851-57, 40
+     lbs. (Saechs. Statist. Ztschr., 1867, 143 seq.) On the other
+     hand, _Schmoller_ estimated the consumption of meat in
+     general in Prussia, in 1802, at 33.8; in 1816, at 22.5; in
+     1840, at 34.6; in 1867, at 34.9 lbs. (_Fuehling_, N. Landw.
+     Zeitg., XIX; Jahrg. Heft., 9 seq.) Paris consumed, in 1850,
+     145 pounds of butcher's meat per capita; in 1869, 194
+     pounds. In the year of the revolution, 1848, the consumption
+     declined 45 per cent.; the consumption of wine in barrels,
+     16 per cent.; in bottles, 44 per cent.; of sea-fish, 25 per
+     cent.; of oysters, 24 per cent.; of beer, 20 per cent.; of
+     eggs, 19 per cent.; of butter, 13 per cent.; of fowl, 6 per
+     cent. (_Cl. Juglar_, in the Journal des Economistes, March,
+     1870.)]
+
+     [Footnote 229-5: _Porter_, Progress of the Nation, V, 5, 591
+     ff.; _Hildesheim_, Normaldiet, 52 ff. Well-known English
+     popular song: "Oh, the roast beef of old England" etc. Even
+     at the end of the 17th century one-half of the nation
+     partook of fresh meat scarcely once or twice a week; most of
+     that consumed was salted. (_Macaulay_, History of England,
+     ch. 3.) But even _Boisguillebert_, Traite des Grains, II, 7,
+     characterizes the English as great beer-drinkers and
+     meat-eaters, from the highest class to the lowest, while the
+     French consumed almost nothing but bread. Similarly _J. J.
+     Becher_, Physiologie, 1678, 202, 248, on the great
+     consumption of meat and sugar in England.]
+
+     [Footnote 229-6: _Anderson_, Origin of Commerce, a. 1743;
+     _Porter_, Progress, V, 4, 350 ff.; Meidinger, 154 ff.;
+     Memorandum respecting British Commerce, etc., before and
+     since the Adoption of Free Trade, 1866. On men-of-war each
+     man gets 35-45 lbs. a year; in the poorhouse, old men
+     22-3/4. (_Porter._)]
+
+     [Footnote 229-7: In Henry IV.'s time, in France, sugar was
+     sold by the apothecaries by the ounce!]
+
+     [Footnote 229-8: _Deiterici_, Statist. Uebersicht des
+     Verkehrs, etc. im Zollvereine, 4; Fortsetzung, 168 ff., 208,
+     265, 599. Thus, in Great Britain, the population between
+     1816 and 1828 grew, from 13-1/2 million to nearly 16
+     million. On the other hand, consumption, when the average
+     from 1816 to 1819 is compared with that from 1824 to 1828,
+     increased in a much greater proportion: soap, from 67-3/4 to
+     100 million pounds; coffee, from 7,850,000 to 12,540,000
+     pounds; starch, from 3-1/5 to 6-1/3 million pounds. (Quart.
+     Rev., Nov., 1829, 518.) The consumption of tea per capita in
+     1801 was 1.5 lbs., in 1871, 3.93 lbs. (Statist. Journ.,
+     1872, 243.) In the matter of illumination, a very beneficent
+     luxury has been obtained, inasmuch as, spite of the fact
+     that gas-light is so generally used in recent times, i. e.,
+     since 1804, the consumption of oil has very much increased,
+     on account of the lamps now so much in favor; and that of
+     candles also has increased, relatively speaking, more
+     rapidly than the population. The illumination produced is
+     much richer now than formerly, a fact which, besides its
+     sanitary advantages, has had a good influence in diminishing
+     street robberies. (_Julius_, Gefaengnisskunde, XXII.) During
+     the middle ages, candles were very dear; according to
+     _Rogers_ (I, 415) 1-1/3 to 2 shillings per pound.]
+
+     [Footnote 229-9: Present state of England, 1683, III, 529;
+     compare _Storch_, Handbuch, II, 337 seq.]
+
+     [Footnote 229-10: _Dieterici_, Statist. Uebersicht, 321 ff.,
+     363, 399.]
+
+     [Footnote 229-11: _Bernouilli_, Technologie, II, 223. It is
+     a striking symptom of the wealth or ostentation of the later
+     period of the Empire that, according to _Ammian. Marcell_,
+     (XXIII, 258-ed. Paris, 1636) silk goods were a want even
+     among the lower classes, notwithstanding the fact that they
+     had to be imported from China.]
+
+
+SECTION CCXXX.
+
+EQUALIZING TENDENCY OF LATER LUXURY.
+
+The whole social character of this luxury has something
+equalizing[230-1] in it; but it supposes particularly that there is not
+too marked a difference in the resources of the people.
+
+A proper gradation of national wants is best guarantied by a good
+distribution of the national resources.[230-2] The more unequal the
+latter is, the more is there spent on vain wants instead of on real
+ones; and the more numerous are the instances of rapid and even immoral
+consumption. Where there are only a few over-rich men, more foreign
+products and products of capital are wont to be called for than home
+products and productions of labor; and luxury especially despises all
+those commodities manufactured in large institutions.[230-3] Every
+change in the consumption-customs of a people, in this respect, should
+be most carefully observed; thus, for instance, whether brandy is
+exchanged for beer, tobacco for meat, cotton for cloth, or the
+reverse.[230-4]
+
+One of the characteristics of this period is the endeavor to possess the
+best quality of whatever is possessed at all, and to be satisfied with
+less of it rather than purchase more of an inferior quality. This is,
+essentially, to practice frugality, inasmuch as certain
+production-services remain the same whether the commodity is of the best
+or the worst quality, and that commodities of the best quality are more
+superior to the worst in intrinsic goodness than they are in price. But
+this course supposes a certain well-being already existing.
+
+In this period, also, the luxury of the state is wont to take the
+direction of those enjoyments which are accessible to all.[230-5]
+
+     [Footnote 230-1: Formerly the dress of citizens was a weak
+     imitation of the court costume: at present the reverse is
+     the case, and the court costume is only a heightening of the
+     citizen costume. Compare _Riehl_, Buergerl. Gesellschaft,
+     191.]
+
+     [Footnote 230-2: _Helvetius_, De l'Homme, 1771. sec. VI, ch.
+     5.]
+
+     [Footnote 230-3: _J. B. Say_, Traite, II, 4; _Sismondi_, N.
+     P., IV, ch. 4. As early a writer as _Lauderdale_, Inquiry,
+     358 ff., thought the social leveling of modern times would
+     promote English industry. In the East Indies, on the other
+     hand, only the most expensive watches, rifles, candelabras
+     etc. were sold, because the nabobs were the only persons who
+     created any demand for European commodities (312 ff.). _Adam
+     Smith_, Wealth of Nat., II, ch. 3, draws a very correct
+     distinction between the luxury of durable goods and that of
+     those which perish rapidly; the former is less calculated to
+     impoverish an individual or a whole nation; and hence it is
+     much more closely allied to frugality. Similarly even
+     _Isocrates_, ad Niccol., 19; _Livy_, XXIV, 7; _Plin._, H.
+     N., XIII, 4; _Mariana_, 1598, De Rege et Regis Institutione,
+     III, 10; _Sir W. Temple_, Works, I, 140 seq., who found this
+     better kind of luxury in Holland: _Berkeley_, Querist, No.
+     296 ff.]
+
+     [Footnote 230-4: _Schmoller_, loc. cit., considers it no
+     favorable symptom, that in Prussia, between 1802 and 1867,
+     the per capita consumption of milk decreased and that of
+     wool increased. According to _L. Levi_, the consumption of
+     brandy in England decreased from 1854 and 1870, from 1.13 to
+     1.01 gallons per capita; but, on the other hand, the
+     consumption of malt increased from 1.45 to 1.84 bushels, and
+     the consumption of wine from 0.23 to 0.45 gallons. The
+     number of licenses to retail spirituous liquors was, in
+     1830, 6.30 per thousand of the population; in 1860-69, only
+     5.57. (Statist. Journal, 1872, 32 ff.)]
+
+     [Footnote 230-5: Compare _Cicero_, pro Murena, 36. The
+     Athenians under Pericles, in times of peace, spent more than
+     one-third of their state-income on plastic and architectural
+     works of art. The annual state-income amounted to 1,000
+     talents (_Xenoph._, Exp. Cyri, VII, 1, 27), while the
+     propylea alone cost, within 5 years, 2,012 talents.
+     (_Boeckh_, Staatsh., I, 283.) On the other hand,
+     _Demosthenes_ complains of the shabbiness of public
+     buildings, and the magnificence of private ones in his time.
+     (adv. Aristocr., 689, Syntax., 174 seq.)
+
+     _Demetrius Phalereus_ blames even Pericles, on account of
+     his extravagance on the propylea, although Lycurgus had
+     been, not long before, addicted to luxury after the manner
+     of Pericles. (_Cicero_, De Off., II, 17.)]
+
+
+SECTION CCXXXI.
+
+THE ADVANTAGES OF LUXURY.
+
+The favorable results which many writers ascribe to luxury in general
+are true evidently only of this period. And thus luxury, inasmuch as it
+is a spur to emulation, promotes production in general; just as the
+awarding of prizes in a school, although they can be carried away only
+by a few, excites the activity of all its attendants. A nation which
+begins to consume sugar will, as a rule, unless it surrenders some
+previous enjoyment, increase its production.[231-1] In countries where
+there is little or no legal security, in which, therefore, people must
+keep shy of making public the good condition they are in, this
+praise-worthy side of luxury is for the most part wanting.[231-2]
+
+All rational luxury constitutes a species of reserve fund for a future
+day of need. This is especially true of these luxuries which take the
+form of capital in use (_Nutzkapitalien_.) Where it is customary for
+every peasant girl to wear a gold head-dress,[231-3] and every
+apprentice a medal, a penny for a rainy day is always laid by among the
+lower classes. The luxury which is rapidly consumed has a tendency in
+the same direction. Where the majority of the population live on
+potatoes, as in Ireland, where, therefore, they are reduced to the
+smallest allowance of the means of subsistence, there is no refuge in
+case of a bad harvest. A people on the other hand, who live on wheat
+bread may go over to rye bread, and a people who live on rye bread to
+potatoes. The corn that in good years is consumed in the making of
+brandy may, in bad years, be baked into bread.[231-4] And the oats
+consumed by horses kept as luxuries may serve as food for man.
+Pleasure-gardens (_Lustgaerten_) may be considered as a kind of last
+resort for a whole people in case of want of land.[231-5] [231-6]
+
+     [Footnote 231-1: Compare _Benjamin Franklin's_ charming
+     story, Works I, 134 ff.; ed. Robinson. _Colbert_ recommended
+     luxury chiefly on account of its service to production.]
+
+     [Footnote 231-2: Turkish magnates who keep several
+     magnificent equipages ride to the sultan's in a very bad
+     one. Risa Pascha, when at the height of his power, had his
+     house near a villa of the sultan painted in the plainest and
+     most unsightly manner possible. The walls of a park in
+     Constantinople painted half in red and half in blue, to give
+     it the appearance of being two _gardens_. (Alg. Zeitung, 16
+     Juli, 1849.) In Saxony, between 1847 and 1850, the number of
+     luxury horses diminished from 6.11 to 5.64 per cent. of the
+     total number of horses in the kingdom. (_Engel_, Jahrbuch,
+     I, 305.) In the same country there were coined in 1848 over
+     64,000 silver marks, derived from other sources than the
+     mines. (_Engel_, Statis. Zeitschr. I, 85.) In England, on
+     the other hand, the number of four-wheeled carriages
+     increased more than 60 per cent. between 1821 and 1841,
+     while the population increased only 30 per cent. (_Porter_,
+     Progress, V, 3, 540.)]
+
+     [Footnote 231-3: Such a head-dress may very easily be worth
+     300 guldens in Friesland. Gold crosses worn by the peasant
+     women about Paris. (_Turgot_, Lettre sur la Liberte du
+     Commerce des Grains.)]
+
+     [Footnote 231-4: So far it is of some significance, that
+     nearly all not uncivilized nations use their principal
+     article of food to prepare drinks that are luxuries. Thus,
+     the Indians use rice, the Mexicans mais, the Africans the
+     ignam-root. It is said that in ancient Egypt, beer-brewing
+     was introduced by Osiris. (_Diodor._, I, 34.) Compare
+     _Jeremy Bentham_, Traite de Legislation, I, 160. _Malthus_,
+     Principle of Population, I, ch. 12; IV, ch. 11.]
+
+     [Footnote 231-5: While in thinly populated North America,
+     space permits the beautiful luxury in cemeteries of
+     ornamenting surroundings of each grave separately (_Gr.
+     Goertz_, Reise, 24), the Chinese garden-style seeks to effect
+     a saving in every respect. In keeping with this is the fact
+     that animal food has there been almost abolished. Compare,
+     besides, _Verri_, Meditazioni, XXVI, 3.]
+
+     [Footnote 231-6: _Garve_ thinks that luxury, when it takes
+     the direction of a great many trifles, little conveniences,
+     etc., has the effect of distracting the people. Here there
+     are few men of towering ambition or of inextinguishable
+     revenge, but at the same time, few entirely unselfish and
+     incorruptible patriots. (_Versuche_, I, 232.)]
+
+
+SECTION CCXXXII.
+
+LUXURY IN DECLINING NATIONS.
+
+In declining nations, luxury assumes an imprudent and immoral character.
+Enormous sums are expended for insignificant enjoyments. It may even be
+said that costly consumption is carried on there for its own sake. The
+beautiful and the true enjoyment of life makes place for the monstrous
+and the effeminate.
+
+Rome, in the earlier part of the empire, affords us an example of such
+luxury on the most extensive scale.[232-1] Nero paid three hundred
+talents for a murrhine vase. The two acres (_Morgen_) of land which
+sufficed to the ancient citizens for a farm (_Acker_) were not now
+enough to make a fish-pond for imperial slaves. The sums carried by the
+exiles with them, to cover their traveling expenses and to live on for a
+time, were now greater than the fortunes of the most distinguished
+citizens had been in former times.[232-2] There was such a struggle
+among the people to surpass one another in procuring the freshest
+sea-fish that, at last, they would taste only such as they had seen
+alive on the table. We have the most exalted descriptions of the
+beautiful changes of color undergone by the dying fish; and a special
+infusion was invented to enable the epicure better to enjoy the
+spectacle.[232-3] Of the transparent garments of his time, Seneca says
+that they neither protected the body nor covered the nakedness of
+nature. People kept herds of sheep dyed in purple, although their
+natural white must have been much more agreeable to any one with an eye
+for the tasteful.[232-4] Not only on the roofs of houses were fish-ponds
+to be seen, but gardens even hanging on towers, and which must have been
+as small, ugly and inconvenient as they were costly.[232-5] Especially
+characteristic of the time was the custom of dissolving pearls in wine,
+not to make it more palatable, but more expensive.[232-6] The emperor
+Caligula, from simple caprice, caused mountains to be built up and cut
+away: _nihil tam efficere concupiscebat, quam, quod posse effici
+negaretur_.[232-7] This is the real maxim of the third period of luxury!
+People changed their dress at table, inconvenient as it was to do so,
+occasionally as often as eleven times. Perfumes were mixed with the wine
+that was drunk, much as it spoiled its taste, only that the drinkers
+might emit sweet odors from every pore. There were many so used to being
+waited on by slaves that they required to be reminded by them at what
+times they should eat and when they should sleep. It is related of one
+who affected superiority over others in this respect, that he was
+carried from his bath and placed on a cushion, when he asked his
+attendant: "Am I sitting down now?"[232-8] It is no wonder, indeed, that
+an Apicius should reach out for the poisoned cup when his fortune had
+dwindled to only _centies sestertium_, _i. e._, to more than half a
+million thalers.[232-9]
+
+In this last period, the coarse debauchery of the earlier periods is
+added to the refined. Swarms of servants, retinues of gladiators who
+might be even politically dangerous,[232-10] monster banquets, at which
+Caesar, for instance, entertained the whole Roman people, colossal
+palaces such as Nero's _aurea domus_, which constituted a real city;
+annoying ostentation in dress[232-11] again becomes the order of the
+day. The more despotic a state becomes, the more is the craving for
+momentary enjoyment wont to grow; and for the same reason that great
+plagues diminish frugality and morality.[232-12]
+
+     [Footnote 232-1: _Meierotto_, Sitten und Lebensart des
+     Roemer, II, 1776; _Boettiger_, Sabina, II, 1803;
+     _Friedlaender_, Darstellungen aus der Sittengeschichte Roms,
+     Bd. III, 1868; which latter work has been written with the
+     aid of all that modern science can afford.]
+
+     [Footnote 232-2: _Plin._, H. N., XXXVII, 7; XVIII, 2;
+     _Seneca_, Quaest. Natur., I, 17; Consol. ad. Helviam, 12.]
+
+     [Footnote 232-3: _Seneca_, Quaest. Natur., III, 18; _Plin._,
+     H. N., IX, 30.]
+
+     [Footnote 232-4: _Seneca_, De Benef., VII, 9; _Plin._, N.
+     N., VIII, 74.]
+
+     [Footnote 232-5: _Valer. Max._, IX, 1; _Seneca_, Epist, 122.
+     Thus Hortensius sprinkled his trees with wine. _Macrob._,
+     Sat., III, 13.]
+
+     [Footnote 232-6: Besides Cleopatra, Caligula especially did
+     this frequently. Compare also _Horat._, Serm., II, 3, 239
+     ff. Similarly, the luxury of the actor Aesopus, when he
+     placed a dish worth 6,000 _louis d'or_ before his guests,
+     consisting entirely of birds which had been taught to sing
+     or speak. _Pliny_, H. N., X, 72. Compare _Horat._, loc.
+     cit., 345.]
+
+     [Footnote 232-7: _Sueton._., Caligula, 37. _Hoc est luxuriae
+     propositum, gaudere perversis. Seneca_., Epist., 122.
+     According to the same letter of Seneca, the luxury of Nero's
+     time had its source rather in vanity than in sensuality and
+     gluttony.]
+
+     [Footnote 232-8: _Martial_, V, 79; _Plin_., H. N. XIII, 5.
+     _Seneca_, De Brev. Vitae. I, 12.]
+
+     [Footnote 232-9: _Seneca_, Cons. ad Helviam 10, _Martial_,
+     III, 22.]
+
+     [Footnote 232-10: Hence, early limited by law. _Sueton._.
+     Caes. 10. Augustus limited the exiles to taking 20 slaves
+     with them: _Dio Cass._ VII, 27. Special value attached to
+     dwarfs, buffoons, hermaphrodites, eunuchs, precisely as
+     among the moderns in the times of the degenerated absolutist
+     courts, the luxury of which is closely allied in many
+     respects to that of declining nations.]
+
+     [Footnote 232-11: Caligula's wife wore, on ordinary
+     occasions, 40,000,000 sesterces worth of ornaments. _Plin._
+     H. N. IX, 58.]
+
+     [Footnote 232-12: _Gibbon_, History of the Decline and Fall
+     of the Roman Empire, ch. 27. What a parallel between this
+     later Roman luxury and the literary taste represented for
+     instance by Seneca!
+
+     Let any one who would embrace the three periods of luxury in
+     one view, compare the funeral ceremonies of the Greek age of
+     chivalry (_Homer_, Il.), with those in _Thucyd._ (II, 34,
+     ff.), _Demosth._ (Lept., 499 seq.), and the interment of
+     Alexander the Great and, of his friend Hephaestion
+     (_Diodor._, XVII, 115, XVIII, 26 ff.) Sullas (Serv. ad
+     _Virgil_, AEneid VI, 861. _Plutarch_, Sulla, 38), and that of
+     the wife of the emperor Nero (_Plin._, H. N. XII, 41).
+     _Roscher_, loc. cit. 66 ff.]
+
+
+SECTION CCXXXIII.
+
+LUXURY-POLICY.
+
+Sumptuary laws (_die Luxusgesetzgebung_) have been aimed, at all times,
+principally at the outlay for clothing, for the table and for
+funerals.[233-1] In most nations the policy of luxury has its beginning
+in the transition from the first to the second period of luxury above
+described.[233-2] The extravagant feasts, which remain of the first
+period, seem vulgar to the new public opinion which is created. On the
+other hand, the conveniences of life, the universality, the refinement
+and variety of enjoyments characteristic of the second period are not
+acceptable to the austerity of old men, and are put down as effeminacy.
+In this period the bourgeoisie generally begin to rise in importance,
+and the feudal aristocracy to decay. The higher classes see the lower
+approximate to them in display, with jealous eyes. And, hence, dress is
+wont to be graded in strict accordance with the differences of
+class.[233-3] But these laws must be regarded as emanating from the
+tendency, which prevails in these times, of the state to act as the
+guardian of its wards, its subjects. The authority of the state waxes
+strong in such periods; and with the first consciousness of its power,
+it seeks to draw many things into its sphere, which it afterwards
+surrenders.
+
+     [Footnote 233-1: Which of these three kinds of luxury
+     specially preponderated has always depended on the
+     peculiarities of national character. Thus, among the ancient
+     Romans, it was the second; among the French, the first. In
+     Germany the prohibitions relating to "toasts," or drinking
+     one another's health have played a great part. Thus the
+     well-known Cologne reformation of 1837. Compare _Seb.
+     Muenster_, Cosmogr., 326.]
+
+     [Footnote 233-2: In Greece, _Lycurgus'_ legislation seems to
+     have contained the first prohibition relating to luxury. No
+     one should own a house or household article which had been
+     made with a finer implement than an ax or a saw; and no
+     Spartan cook should use any other spice than salt and
+     vinegar. (_Plut._, De Sanitate, 12; _Lycurg._, 13. On
+     Periander, see _Ephorus_, ed. _Marx_, fr. 106. _Heracb._,
+     Pont. ed.; _Koehler_, fr. 5; _Diog. Laert._, I, 96 ff.) The
+     luxury-prohibitions of Solon were aimed especially at the
+     female passion for dress and the pomp of funerals. Those who
+     had the surveillance of the sex watched also over the luxury
+     of banquets. _Athen._, VI, 245; _Demosth._ in _Macart._,
+     1070. In Rome, there were laws regulating the pomp of and
+     display at funerals, dating from the time of the Kings; but
+     especially are such laws to be found in the twelve tables.
+     Lex Oppia de Cultu Mulierum in the year 215 before Christ. A
+     very interesting debate concerning the abolition of this law
+     in _Livy_, XXXIV, 1 ff. About 189, prohibition of several
+     foreign articles of luxury. _Plin._, H. N., XIII, 5, XIV,
+     16. Measures of Cato the censor. (_Livy_, XXXIX, 44.) First
+     law relating to the table, L. Orchia, in the year 187;
+     afterwards L. Fannia, 161, L. Didia, 143 before Christ.
+     (_Macrob._, Sat. V, 13; _Gellius_, N. A., II, 24. _Plin._,
+     H. N., X, 7.) After a long pause, sumptuary laws relating to
+     food, funerals and games of chance, constitute an important
+     part of Sulla's legislation.]
+
+     [Footnote 233-3: _Latus clavus_ of the Roman senators;
+     _annulus_ of the knights. In the latter middle age, the
+     knights were wont to be allowed to wear gold, and esquires
+     only silver; the former, damask; the latter, satin or
+     taffeta; but when the esquires also used damask, velvet was
+     reserved for the knights alone. _St. Palaye_, Das
+     Ritterwesen, by _Klueber_, IV, 107; II, 153 seq. But towards
+     the end of the middle ages many sumptuary laws were enacted
+     in cities by plebeian jealousy of the rich. The Venetian
+     sumptuary laws were passed on account of the anxiety of the
+     state that some rich men might shine above the rest of the
+     oligarchs.]
+
+
+SECTION CCXXXIV.
+
+HISTORY OF SUMPTUARY LAWS.
+
+As in Italy, Frederick II., in Aragon, Iago I., in 1234, in England,
+Edward III., by 37, Edward III., c. 8 ff., so in France Philip IV. was
+the first who busied himself seriously with sumptuary legislation;[234-1]
+that is the same king who had introduced in so many things the modern
+political life into France. (For instance, the ordinance of 1294,
+regulating apparel and the luxury of the table.) In the 14th century, we
+find sumptuary laws directed mainly against expense for furs, and in the
+16th mainly against that for articles of gold and silver. From the
+descriptions left us in such laws of the prohibited luxuries, we may learn
+as much of the history of technology and of fashion, as we may of the
+history of classes from the gradation of the things permitted. The fines
+imposed for violations of these laws, under Philip IV. went for the most
+part to the territorial lord; and in the 16th and 17th centuries to the
+foundation of charitable institutions. The state, as a rule, took no share
+of them; doubtless to avoid the odium which might attach to this kind of
+revenue.
+
+Beginning with the end of the 16th century, the sumptuary laws of France
+relating to the luxuries permitted to the several classes of the people
+disappear. The legislator ceases to be guided by moral considerations
+and begins to be influenced by reasons partaking of a commercial and
+police character; and here we may very clearly demonstrate the origin of
+the so-called mercantile or protective system. Thus, in the declaration
+of Louis XIV. dated December 12, 1644, we find a complaint, that not
+only does the importation of foreign articles of luxury threaten to rob
+France of all its gold and silver, but also that the home manufacture of
+gold cloth, etc., which at Lyons alone ate up 10,000 livres a week, had
+the same effect. Under Colbert, in 1672, it was specially provided for,
+in the prohibition of coarser silver ware, that all such ware should be
+brought to the mint.[234-2] In the edict of 1660, the king even says
+that he has in view especially the higher classes, officers, courtiers,
+etc., in whom it was his duty to be most deeply interested. To preserve
+the latter from impoverishment was the main object of the law.
+
+Under Louis XV. all sumptuary laws were practically a dead
+letter.[234-3] Their enforcement is, indeed, exceedingly difficult, as
+it is always harder to superintend consumption than production. The
+latter is carried on in definite localities, not unfrequently even in
+the open air. The former is carried on in the secrecy of a thousand
+homes. Besides, sumptuary laws have very often the effect to make the
+forbidden fruit all the sweeter. Where they are based on a difference of
+class, not only the passion for pleasure, but the vanity of the lower
+classes is an incentive to their violation.[234-4] Spite of the severity
+of the penalties attached to the violation of these laws, of redoubled
+measures of control, which are dreadful burdens on the intercourse
+between man and man,[234-5] the French government has been compelled to
+admit, after almost every internal commotion, and almost every external
+war, that its sumptuary laws fell into disuse.
+
+     [Footnote 234-1: Ordonnances de France, I, 324, 531. Worms
+     law of 1220. (_Riehl_, Pfaelzer, 246.) Braunschweig law of
+     1228, that at weddings there should not be over 12 plates
+     nor more than three musicians. (_Rehtmeyer_, Chron., 466.)
+     Danish sumptuary law of 1269. First law regulating dress in
+     Prussia in 1269. (_Voigt_, Gesch. von Preussen, V, 97.) On
+     Henry II., see _v. Raumer_, Hohenstaufen, VI, 585. Some of
+     the earlier restrictions on luxury, such as that of 190 in
+     England and France, against scarlet ermine, etc., may have
+     been related to the religious fervor of the crusades. _St.
+     Louis_, during the whole period of his crusades wore no
+     articles of luxury.]
+
+     [Footnote 234-2: The English prohibition against the wearing
+     of silk on hats, caps, stockings etc. (1 and 2 Phil. and
+     Mary, ch. 2.) was promulgated with the intention of
+     promoting the home manufacture of wool. And so _Sully_,
+     Economics, L, XII, XVI, was in favor of laws regulating
+     outlay mainly from "mercantilistic" reasons, that the
+     country might not be impoverished by the purchase of foreign
+     expensive articles. The police ordinance of the Empire of
+     1548, tit. 9, desired to guard against both the "excessive"
+     exportation of money and the obliteration of class
+     differences; that of 1530, tit. 9, and the Austrian police
+     ordinance of Ferdinand I. had only the second object in
+     view. (_Mailath_, Gesch., von Oesterreich, II, 169 ff.) How,
+     in Denmark, prohibitions of luxury grew very soon into
+     prohibitions of imports with a protective intention, see in
+     _Thaarup_, Daenische Statistik, I, 521 seq. On the
+     mercantilistic object of the greater number of prohibitions
+     of coffee, in the 18th century, see _Dohm_, ueber
+     Kaffeegesetzgebung, in the D. Museum, Bd., II, St. 8, No.
+     4.]
+
+     [Footnote 234-3: _Des Essart_, Dictionnaire universel de
+     Police, VI, 146. In Great Britain, the Scotch luxury-law of
+     1621 is the last. (_Anderson_, Origin of Commerce, a. 1621.)
+     In Germany, there were some such laws until the end of the
+     18th century; and the laws regulating mourning have lasted
+     longest. Compare that of Frederick the Great of 1777, the
+     Bamberg and Wurzberg laws of 1784, in _Schloezer_,
+     Staatsanzeigen, IX, 460; fol. 141 ff. There are many men who
+     have no desire to go to any heavy expense in mourning, but
+     do not dare to give expression thereto in certain cases, and
+     therefore look with favor on a law to which they may appeal
+     as an excuse.]
+
+     [Footnote 234-4: Compare _N. Montaigne_, 1580, Essais, I,
+     63. A striking instance in antiquity: _Macrob._, II, 13;
+     most recently in _Lotz_, Revision, I, 407.]
+
+     [Footnote 234-5: Compare especially the French sumptuary law
+     of 1567. Zaleucos went so far in his severity as to punish
+     with death the drinking of unmixed wine, without the
+     prescription of a physician. (_Athen._, IX, 429.) The effort
+     has sometimes been made to enlist the feeling of honor of
+     the people in the controlling of luxury. Thus old Zaleucos
+     forbade the wearing of gold rings or Milesian cloth unless
+     the wearer desired to commit adultery, or to be guilty of
+     sins against nature (_Diodor._, XII, 21); but such laws are
+     scarcely attended with success.]
+
+
+SECTION CCXXXV.
+
+DIFFICULTY OF ENFORCING SUMPTUARY LAWS.
+
+The impossibility of enforcing sumptuary laws has been most strikingly
+observed, where it has been attempted to suppress the consumption of
+popular delicacies in the first stages of their spread among the people.
+Thus, an effort was made in this direction in the sixteenth century, as
+regards brandy; in the seventeenth, as regards tobacco; in the
+eighteenth, as regards coffee; all which three articles were first
+allowed to be used only as medicines.[235-1] When governments discovered
+after some time the fruitlessness of the efforts, they gave up the
+prohibition of these luxuries and substituted taxes on them
+instead.[235-2] Thus an effort was made to combine a moral and a fiscal
+end. But it should not be lost sight of that the lower these taxes are,
+the greater the revenue they bring in; that is, the less the moral end
+is attained, the more is the fiscal end. Even Cato took this course. His
+office of censor, which united the highest moral superintendence with
+the highest financial guidance, must of itself have led him in this
+direction.[235-3] In modern times the most important excises and
+financial duties of entry have been evolved out of sumptuary laws. Even
+the Turks, after having long tried to prohibit tobacco-smoking in vain,
+afterwards found in the duties they imposed on that plant a rich source
+of income. That such taxes are among the best imposed, where they do not
+lead to frauds on the government, become excessive, or diminish
+consumption to too great an extent, is universally conceded.
+
+Beyond this there is, on the whole, little left of the old police
+regulations relating to luxury. Thus, governmental consent is, in most
+countries, required for the establishment of places where liquors are
+sold at retail, for the maintenance of public places of amusement, for
+shooting festivals, fairs, etc.; and this consent should not be too
+freely granted. The police power prescribes certain hours at which
+drinking places shall be closed. Games of chance are wont to be either
+entirely prohibited or restricted to certain places and times (bathing
+places), or are reserved as the exclusive right of certain institutions,
+especially state institutions. The object of this is, on the one hand,
+to facilitate their supervision, and on the other, to diminish the
+number of seductive occasions. Here, too, belongs the appointment of
+guardians to spendthrifts, which is generally done on the motion of the
+family by the courts; but which, indeed, occurs too seldom to have any
+great influence on the national resources, or on national morals.[235-4]
+
+     [Footnote 235-1: Hessian law that only apothecaries should
+     retail brandy, 1530. English tobacco laws of 1604; _Rymer_,
+     Foedera, XVI, 601. Papal excommunication fulminated in
+     1624, against all who took snuff in church, and repeated in
+     1690. A Turkish law of 1610 provided that all smokers should
+     have the pipe broken against their nose. A Russian law of
+     1634, prohibiting smoking under penalty of death. In
+     Switzerland, even in the 17th century, no one could smoke
+     except in secret. Coffee had a hard struggle even in its
+     native place. (_Ritter_, Erdkunde, XIII, 574 ff.) Prohibited
+     in Turkey in 1633, under pain of death. _v. Hammer_,
+     Osmanische Staatsverwaltung, I, 75. In 1769, coffee was
+     still prohibited in Basel, and was allowed to be sold by
+     apothecaries only, and as medicine. (_Burkhardt_, C. Basel,
+     I, 68.) Hanoverian prohibition of the coffee trade in the
+     rural districts in 1780: _Schloezer_, Briefwechsel, VIII, 123
+     ff.]
+
+     [Footnote 235-2: According to _v. Seckendorff_,
+     Christenstaat, 1685, 435 seq., a decidedly unchristian
+     change.]
+
+     [Footnote 235-3: _Livy_, XXXIX, 44. In Athens, too, the
+     highest police board in the matter of luxury was the
+     areopagus, which was at the same time a high financial
+     court. Sully transformed the prohibition of luxury in regard
+     to banquets into a tax on delicacies. Similarly, in regard
+     to funeral-luxuries, at an earlier date. (_Cicero_, ad.
+     Att., XII, 35.)]
+
+     [Footnote 235-4: Customary even in the early Roman republic,
+     and adjudged _exemplo furioso_. (_Ulpian_, in L. 1 Digest,
+     XXVII, 10.) The immediate knights of the empire were in this
+     respect very severe towards those of their own order. See
+     _Kerner_, Reichsrittersch. Staatsrecht, II, 381 ff. _Sully_
+     ordered the parliaments to warn spendthrifts, to punish them
+     and place them under guardianship. (Economies royales, L,
+     XXVI.) According to _Montesquieu_, it is a genuine
+     aristocratic maxim to hold the nobility to a punctual
+     payment of their debts. (Esprit des Lois, V, 8.)]
+
+
+SECTION CCXXXVI.
+
+EXPEDIENCY OF SUMPTUARY LAWS.
+
+To judge of the salutariness of sumptuary laws, we must keep the above
+three social periods in view throughout. At the close of the first
+period, every law which restricts the excesses of the immediately
+succeeding age (the middle age) is useful because it promotes the noble
+luxury of the second period.[236-1] And so, in the third period,
+legislation may at least operate to drive the most immoral and most
+odious forms of vice under cover, and thus to diminish their contagious
+seduction. It is a matter of significance that, in Rome, the most
+estimable of the emperors always endeavored to restrict luxury.[236-2]
+But too much should not be expected of such laws. _Intra animum medendum
+est; nos pudor in melius mutet._[236-3] It is at least necessary, that
+the example given in high places should lend its positive aid, as did
+that of Vespasian, for instance, who thus really opposed a certain
+barrier to the disastrous flood of Roman luxury.[236-4]
+
+But a strong and flourishing nation has no need of such leading
+strings.[236-5] Where an excrescence has to be extirpated, the people
+can use the knife themselves. I need call attention only to the
+temperance societies of modern times (Boston, 1803), which spite of all
+their exaggeration[236-6] may have a very beneficial effect on the
+morally weak by the solemn nature of the pledge, and the control their
+members mutually exercise over one another. It is estimated that, of all
+who enter them, in the British Empire, at least 50 per cent. remain true
+to the pledge. In Ireland the government had endeavored for a long time
+to preserve the country from the ravages of alcohol by the imposition of
+the highest taxes and the severest penalties for smuggling. Every
+workman in an illegal distillery was transported for seven years, and
+every town in which such a one was found was subjected to a heavy fine.
+But all in vain. Only numberless acts of violence were now added to
+beastly drunkenness. On the other hand, the temperance societies of the
+country decreased the consumption of brandy between 1838 and 1842, from
+12,296,000 gallons to 5,290,000 gallons. The excise on brandy decreased
+L750,000; but many other taxable articles yielded so much larger a
+revenue, that the aggregate government income there increased about
+L91,000.[236-7] [236-8] The Puritanical laws which some of the United
+States of North America have passed prohibiting all sales of spirituous
+liquors except for ecclesiastical, medical or chemical purposes, have
+been found impossible of enforcement.[236-9] [236-10]
+
+     [Footnote 236-1: Commendable laws relating to luxury in
+     Florence in the beginning of the 15th century. The outlay
+     for dress, for the table, for servants and equipages was
+     limited; but, on the other hand, it was entirely
+     unrestricted for churches, palaces, libraries, and works of
+     art. The consequences of this legislation are felt even in
+     our day. (_Sismondi_, Gesch. der Ital. Freistaaten im M. A.,
+     VIII, 261. Compare _Machiavelli_, Istor. Fior., VII, a.,
+     1472.)]
+
+     [Footnote 236-2: Thus Nerva (_Xiphilin._, exc. Dionis,
+     LXVIII, 2); Hadrian (_Spartian V. Hadrian_, 22); Antoninus
+     Pius (Capitol, 12); Marcus Aurelius (Capitol, 27); Pertinax
+     (Capitol, 9); Severus Alexander (_Lamprid_, 4); Aurelian
+     (_Lamprid_, 49); Tacitus (_Vopisc_, 10 seq).]
+
+     [Footnote 236-3: Extracted from the remarkable speech made
+     by the personally frugal Tiberius (_Sueton._, Tib., 34)
+     against sumptuary laws: _Tacit._, Annal., III, 52 ff.
+     Compare, however, IV, 63.]
+
+     [Footnote 236-4: _Tacit._, Ann., III, 55: but the
+     differences in fortune had, at the same time, become less
+     glaring. Henry IV. also dressed very simply for example's
+     sake, as did also Sully, and ridiculed those _qui portaient
+     leurs moulins et leur bois de haute-futaie sur leurs dos_.
+     (_Perefixe_, Histoire du Roi Henry le grand, 208.)]
+
+     [Footnote 236-5: The gross luxuries of drunkenness and
+     gluttony are a direct consequence of universal grossness,
+     and disappear of themselves when higher wants and means of
+     satisfying them are introduced. (_v. Buch_, Reise durch
+     Norwegen und Lappland, 1810, I, 166; II, 112 ff.)]
+
+     [Footnote 236-6: While, formerly, they cared only to abstain
+     from spirits, the so-called "total abstinence" has prevailed
+     since 1832. Most teetotallers compare moderate drinking to
+     moderate lying or moderate stealing; they even declare the
+     moderate drinker worse than the drunkard, because his
+     example is more apt to lead others astray, and he is harder
+     to convert. (But, Psalm, 104, 15!) The coat of arms of the
+     English temperance societies is a hand holding a hammer in
+     the act of breaking a bottle. (Temperance poetry!)]
+
+     [Footnote 236-7: _McCulloch_, On Taxation, 342 ff. Speech of
+     _O'Connell_ in the House of Commons, 27 May 1842. The more
+     serious crimes decreased 1840-44, as compared with the
+     average number during the five previous years by 28, and the
+     most grievous by 50 per cent. (_Rau_, Lehrbuch, II, Sec. 331.)
+     Recently, the first enthusiasm awakened by Father Matthew
+     has somewhat declined, and the consumption of brandy
+     therefore increased. Yet, in the whole United Kingdom in
+     1853, only 30,164,000 gallons were taxed; in 1835,
+     31,400,000; although the population had in the meantime
+     increased from 10 to 11 per cent. In 1834, there were in the
+     United States 7,000 temperance societies with a membership
+     of 1,250,000. The members of these societies are sometimes
+     paid higher wages in factories; and ships which allow no
+     alcohol on board are insured at a premium of five per cent.
+     less. (_Baird_, History of the Temperance Societies in the
+     United States, 1837.)]
+
+     [Footnote 236-8: In the princedom of Osnabrueck, the number
+     of distilleries was noticeably diminished under the
+     influence of the temperance societies; but the consumption
+     of beer was rapidly increased twenty-fold. (Hannoverisches
+     Magazin, 1843, 51. _Boettcher_, Gesch. der M. V. in der
+     Norddeutschen Bundestaaten, 1841.)]
+
+     [Footnote 236-9: Even in 1838, Massachusetts had begun to
+     restrict the sale at retail. The agitation for the
+     suppression of the liquor shops begins in 1841. According to
+     the Maine law of 1851, a government officer alone had the
+     right to sell liquor, and only for the purposes mentioned in
+     the text. The manufacture or importation of liquor for
+     private use was left free to all. A severe system of
+     house-searching, imprisonment and inquisitorial proceedings
+     in order to enforce the law. Similarly in Vermont, Rhode
+     Island, Massachusetts and Michigan. (Edinburg Rev., July,
+     1854.) There are, however, numberless instances related in
+     which the law has been violated unpunished since 1856, and
+     still more since 1872. See _R. Russell_, North America, its
+     Agriculture and Climate, and Edinburg Rev., April, 1873,
+     404.]
+
+     [Footnote 236-10: From the foregoing, it is intelligible why
+     most modern writers, even those otherwise opposed to luxury,
+     are not favorably inclined towards sumptuary laws. "It is
+     the highest impertinence and presumption in kings and
+     ministers, to pretend to watch over the economy of private
+     people and to restrain their expense, either by sumptuary
+     laws or by prohibiting the importation of foreign luxuries.
+     They are themselves always, and without any exception (?)
+     the greatest spendthrifts in the society. If their own
+     extravagance does not ruin the state, that of their subjects
+     never will." (_Adam Smith_, I, ch. 3.) Compare _Rau_,
+     Lehrbuch II, Sec. 358 ff. _R. Mohl_, Polizeiwissenschaft, II,
+     434 ff.
+
+     _Montesquieu's_ opinion that in monarchies luxury is
+     necessary to preserve the difference of class but that in
+     republics it is a cause of decline, is very peculiar. In the
+     latter, therefore, luxury should be restricted in every way:
+     agrarian laws should modify the too great difference in
+     property and sumptuary laws restrain the too glaring
+     manifestations of extravagance. (Esprit des Lois, VII, 4.)
+     As an auxiliary to the history of sumptuary laws, compare
+     _Boxmann_, De Legibus Romanorum sumptuarias, 1816. _Sempere
+     y Guarinos,_ Historia del Luxo y de las Leyes sumtuarias de
+     Espana, II, 1788; _Vertot_, Sur l'Establissement des Lois
+     somptuaires parmi les Francais, in the Memoires de
+     l'Academie des Inscr., VI, 737 seq, besides the sections on
+     the subject in _Delamarre_, Traite de la Police, 1772 ff.;
+     _Penning_, De Luxu et Legibus sumtuariis, 1826.
+     (_Holland._)]
+
+
+
+
+CHAPTER III.
+
+INSURANCE IN GENERAL.
+
+
+SECTION CCXXXVII.
+
+INSURANCE IN GENERAL.
+
+The idea of societies for mutual assistance intended to divide the loss
+caused by destructive accidents which one person would not be able to
+recover from among a great many is very ancient. The insurance of their
+members against causes of impoverishment was one of the principal
+elements[237-1] of the strength of the medieval communities (_Gemeinden
+und Koerperschaften._) If we compare these insurance institutions of the
+middle ages with those of the present, we discover the well-known
+difference between a _corporation_ and an _association_. There the
+members stand to one another in the relation of _persons_ who,
+therefore, seek to guaranty their entire life in the one combination;
+here, they appear only as the representatives of limited portions of
+capital confronted with a definite risk, the average of which may be
+accurately determined. Hence, the former are of small extent, mostly
+local; the latter may extend over whole continents, and even over the
+whole earth. The former have uniformly equal members; the latter embrace
+men of the most different classes. While the former, therefore, simply
+govern themselves, often only on the occasion of their festive
+gatherings, the latter need a precise charter, an artificial tariff and
+a board of officers.
+
+As the absolute monarchical police-state constitutes, generally, the
+bridge between the middle ages and modern times, so too the transition
+from the medieval to the modern system of insurance has been frequently
+introduced by state insurance.[237-2] [237-3] This was very natural at a
+time when the guilds of the middle ages had lost their importance, and
+private industry was not ripe enough to supply the void left by them.
+The government of a country, far in advance intellectually of the
+majority of its subjects, may, by force, induce them to participate in
+the beneficent effects of insurance, and immediately provide
+institutions extensive enough to guaranty real safety. While it may be
+called a rule that mature private industry satisfies wants more rapidly,
+in greater variety, and more cheaply than state industry; in the case of
+insurance against accidents, especially of insurance against fire, there
+are many peculiarities found which would make the entire cessation of
+the immediate action of the state in this sphere, or its limitation
+simply to a legislative and police supervision of insurance, seem a
+misfortune. A dwelling is one of the most universal and urgent of wants,
+and indeed a governing one in all the rest of the arrangements of life.
+If it be destroyed, it is especially difficult to find a substitute for
+it, or to restore it. And to the poorest class of those who need
+insurance, private insurance will, perhaps, be never properly
+accessible.[237-4] If German fire insurance and the German system of
+fire prevention be so superior to the English and North American, etc.,
+one of the principal causes is that German governmental institutions so
+powerfully participate in it.[237-5]
+
+     [Footnote 237-1: The Icelandic _repps_ consisting as a rule
+     of 20 citizens subject to taxation, who mutually insured one
+     another against the death of cattle (to the extent of at
+     least one-fourth the value), and against damage from fire.
+     After every fire three chambers of each house were replaced;
+     so also the loss of clothing and of the means of
+     subsistence, but not other goods or articles of display.
+     (_Dahlmann_, Danisch Gesch., II, 281 ff.) Scandinavian
+     parish-duty, (_Gemeindepflicht),_ of assistance in case of
+     damage by fire: _Wilda_, Gesch. des deutschen Strafrechts,
+     I, 142. Similarly Capitul. a. 779 in _Pertz_, Leges, I, 37.
+     This matter plays an important part in the guilds out of
+     which a large portion of the ancient cities were evolved:
+     compare _Wilda_, Gildenwesen in M. Alter. 123.]
+
+     [Footnote 237-2: Proposed national fire insurance
+     (_Landesbrandversicherung_) in which for the time being
+     several villages should form a company, the surplus of which
+     was to go to the aerarian, and the deficit to be made up by
+     the same: _Georg Obrecht_, Fuenf unterschiedliche Secreta,
+     Strasburg, 1617, No. 3. A similar proposition made on
+     financial grounds in 1609, and rejected in Oldenburg.
+     (_Beckmann_, Beitr. zur Gesch. der Erfind, I, 219 ff.) The
+     idea sometimes suggested in our day, of making the system of
+     insurance a government prerogative, arises as much from the
+     passion for centralization as from socialistic tendencies.
+     Compare the Belgian Bulletin de la Commission de Statist.
+     IV, 210, and _Oberlaender_, Die Feuerversicherungsanstalten
+     vor der Staendeversammlung des k. Sachsen, 1857.]
+
+     [Footnote 237-3: Maritime insurance is much older than
+     insurance against risks on land; the Dutch institutions of
+     Charles V.'s time seem to have existed long before.
+     (Richesse de Hollande, I, 81 ff.) On Flemish, Portuguese and
+     Italian maritime insurance in the 14th century, see
+     _Sartorius_, Gesch. der Hanse, I, 215; _Schaefer_, Portug.
+     Gesch. II, 103 ff., and _F. Bald. Pegolotti_, Tratato della
+     Mercatura in Della decima, etc., della Moneta e della
+     Mercatura dei Fiorentini, 1765. The class engaged in
+     maritime commerce are indeed especially and early rich in
+     capital, speculative and calculating.]
+
+     [Footnote 237-4: In Berlin, in 1871, the movable property of
+     30.4 per cent. of all dwellings was insured; but with this
+     great difference, that of the smallest (without any heatable
+     rooms) only 5.3 per cent. were insured; while of dwellings
+     having 5-7 heatable rooms, 84 per cent. had taken this
+     precaution. (_Schwabe_, Volkszahlung von 1871, 169) But it
+     should not be forgotten that private insurance, especially
+     when speculative, is not in favor of having much to do with
+     persons of small means, while public institutions are, for
+     the most part, obliged to reject no proposition for
+     insurance in their own line, except when coming from a few
+     manufacturing quarters especially exposed to fire.]
+
+     [Footnote 237-5: Outside of Germany, public fire insurance
+     is to be still found only in German Austria, in Denmark,
+     Switzerland and Scandinavia. The Germans had, in 1871, an
+     insurance-sum of 5,908,760,000 thalers, while the mutual
+     private insurance companies had about 1,435,000,000 (of
+     which, at most, 200,000,000 to 300,000,000 were on immovable
+     property), and joint-stock insurance companies, after
+     deducting re-insurance (_Rueckversicherung_), about
+     7,000,000,000. (Mittheilungen der oeff. F. V. Anstalten,
+     1874, 84 ff.) Between 1865 and 1870, it was estimated that
+     the per capita insurance of the population was: in Saxony,
+     407 thalers; in Wuertemberg, 410; in Baden, 365; in Prussia,
+     332; in Switzerland, 425. On the other hand, in the much
+     wealthier British Empire, only 325 per capita; in North
+     America, 215. (loc. cit., 92.) Even in the case of
+     joint-stock insurance companies, the average receipts of
+     premiums (1867-70) were, in Germany, 2 per 1,000 of the
+     insurance-sums; in the United Kingdom, 4.06 per 1,000; in
+     the United States, 10.77; and the damage respectively 1.25,
+     2.28, 5.92 per 1,000 of the insurance-sum. (loc. cit., 93.)]
+
+
+SECTION CCXXXVII (_a_).
+
+INSURANCE IN GENERAL.--MUTUAL AND SPECULATIVE INSTITUTIONS.
+
+All insurance institutions fall into two classes:
+
+A. Mutual insurance companies, in which the insured are also as a
+society the insurers, and share the aggregate damage, of a year, for
+instance, among themselves.
+
+B. Speculative institutions, in which a party, generally a joint-stock
+company, in consideration of a certain definite compensation (premium
+agreed upon and paid in advance), assumes the risk.[237a-1]
+
+So far as security is concerned, no absolute preference can be accorded
+to either of these classes. Mutual insurance companies require to extend
+their business very largely[237a-2] to be able to meet great damage. And
+even where the liability of the members is unlimited, care must be taken
+to distinguish between the legally and the actually possible.[237a-3]
+The joint capital of a well organized[237a-4] premium-association
+affords, in this respect sufficient security from the first, but the
+ratio between its security-fund and the amount of its assumed
+liabilities becomes less favorable as the business is extended, in case
+the fund itself is not enlarged.[237a-5] Mutual insurance may accomplish
+something analogous to that accomplished by a joint-stock fund by
+collecting a reserve of yearly dues in advance, thus modifying the
+burdensome vacillation of the amount payable each year.[237a-6]
+Experience, however, teaches, that the strongest form of mutual
+insurance, that supported either by municipalities or by the state, has
+been able to meet extraordinary damage from fire much better than
+premium-institutions, which are too quickly left in the lurch by the
+stockholders when the damage is greater than the amount of the stock
+subscribed. So also loss from fire caused by war or riots is for the
+most part and on principle, excluded by speculative insurance
+institutions.[237a-7]
+
+In point of cheapness to the insured, mutual insurance seems to have the
+advantage, since it contemplates no profit.[237a-8] From a
+national-economical point of view, also, it is very much of a question,
+whether the active competition of premium institutions, in a sphere
+which affords little room for industry proper, is more of a spur to make
+them "puff up" their claims (_Reclamen_) or to the simplification of
+their administration.[237a-9] However, premium-institutions are more
+easily capable of extending the circle of their business;[237a-10] which
+of itself decreases the general expenses and strengthens their insuring
+power. Premium-insurance supposes a greater development of capitalistic
+speculation than does mutual insurance. But, even in the highest stages
+of civilization, the competition of some mutual insurance companies is
+desirable to protect the insured from a too high rate of profit to the
+insurers.[237a-11] [237a-12] And since the principle of mutual insurance
+has so little attraction for capitalists in a time like that in which we
+live that it can be maintained perhaps only by the support of the state
+or of municipalities, we may consider the desirableness of the state's
+continuing to participate in some way in the matter of insurance as
+established.
+
+     [Footnote 237a-1: We might, however, improperly add another
+     class, that of self-insurance, which lies in the proper
+     distribution of a large capital over a great many points.
+     When, for instance, a large state insures its buildings,
+     this seems a superfluous outlay of public money for the
+     benefit of private associations. Or does England insure its
+     ships? On this account, in Prussia, the insurance of
+     post-offices which Frederick William favored, has recently
+     been done away with. (_Stephan_, Gesch. der Preuss. Post,
+     195, 803.)]
+
+     [Footnote 237a-2: According to _Brueggemann_ (D. Allg. Ztg.,
+     1849, No., 75 ff.), 100 million thalers of an insurance-sum.
+     Actual American legislation prescribes in the case of mutual
+     insurance a minimum number of members of from 200 to 400, a
+     minimum amount of annual premiums of from $25,000 to
+     $200,000, of cash payments on the annual premium of from 10
+     to 40 per cent. of cash-paid yearly premiums, $5,000 to
+     $40,000; and a maximum amount of premium notes made by a
+     member of $500. (Compare Mittheilungen, 26 ff.)]
+
+     [Footnote 237a-3: Hence several mutual companies limit
+     themselves to a maximum liability. Thus, for instance, the
+     Gotha Fire Insurance Company requires from each member a
+     bond that in case of necessity, four times the amount of the
+     presumptive contribution paid in advance shall be paid
+     after; in Altona, six times the yearly premium is the
+     maximum.]
+
+     [Footnote 237a-4: In France, every premium-insurance-company
+     has to be approved by the government (Cod. de Comm., art
+     37), and the approval is not given until 1/5 of the
+     joint-stock capital has been deposited. (_Block_, Dictionn.
+     de l'administration, Fr. 153.) Many recent American laws
+     require that the shares of insurance companies should be
+     registered with the name of the owner.]
+
+     [Footnote 237a-5: The Aix-Munich Fire Insurance Association
+     raised its joint-stock capital after the Hamburg fire from 1
+     to 3 million thalers.]
+
+     [Footnote 237a-6: Usually so that the regular yearly
+     contribution is higher than the average damage and cost of
+     administration; this excess is then returned in the form of
+     a dividend, either immediately at the close of the yearly
+     account, or which is still safer, after several years. In
+     the Stuttgart private insurance company, the reserve must
+     amount to one per cent. of the amount insured, before the
+     premium-surplus is returned. The Gotha fire insurance
+     company, between 1821 and 1842, paid back an average of 46
+     per cent.; and even in 1842, after the Hamburg
+     conflagration, there was an after-payment of only 98 per
+     cent. necessary. This collection in advance of a fund for
+     extraordinary losses is more secure than borrowing in case
+     of need, and paying back in good years. Thus, the Baden
+     Landes-Brandkasse had a debt in 1837 of 800,000 florins.
+     (_Rau_, in the Archiv., III, 320 ff.) In a mutual insurance
+     company, where entrance and exit are free, this would be
+     scarcely possible.]
+
+     [Footnote 237a-7: Nearly three-fourths of the public
+     insurance institutions insure also against fire caused by
+     war (Mitth., 1874, 85), a matter of importance even as war
+     is waged in our own days, since in 1870-71, the damage from
+     fire by the Franco-Prussian war in France was estimated at
+     141,000,000 francs. (Mitth., 1873, 33.)]
+
+     [Footnote 237a-8: In Prussia, the mutual fire insurance
+     companies, in 1865 and 1866 had an administration outlay of
+     0.24 and 0.22 per 1,000 of the amount insured; the premium
+     insurance companies of 0.80 and 0.96; the latter doubtless
+     including large assessments for common purposes. (Preuss.
+     Statist. Ztschr., 1868, 269.) In all Germany, the outlay for
+     administration is, for public institutions, 4 per cent. of
+     the contributions; for premium institutions, inclusive of
+     their dividends, 37.1 per cent.; for the more important
+     French private institutions, even 68.8 per cent. (Mitth.,
+     1874, 89, 92.)]
+
+     [Footnote 237a-9: German public fire insurance institutions
+     generally have a territory of their own, in which that
+     institution is the only one of the kind. On the other hand,
+     the premium institutions in the whole empire keep about
+     80,000 agents, i. e., a number 50 times as large as the
+     number of officers of the former, (loc. cit. 90.)]
+
+     [Footnote 237a-10: Mutual insurance companies, as they have
+     extended, have sometimes split up into several; for
+     instance, the insurance companies against damage by hail at
+     Luebeck, Guestrow, Schwedt and Griefswald, daughters of that
+     at New Brandenburg.]
+
+     [Footnote 237a-11: The founder of the Mutual Fire Insurance
+     Company of Gotha expressed the hope that in it, it would be
+     possible to insure 60 per cent. cheaper than was customary
+     in the joint stock companies of the time. In the system of
+     agricultural _Einzelhoefe_ in Germany, small mutual insurance
+     companies are possible, and insurance then may be very
+     cheap.]
+
+     [Footnote 237a-12: On the premium associations, _Bernoulli_
+     Ueber die Vorzuege der gegenseitige Brandasscuranzen vor
+     Praemiengesellschaften, 1827. _Per contra_, _Masius_, Lehre
+     der Versicherung und Statische Nachweisung aller V.
+     Anstalten in Deutschland, 1846. In Prussia, premium
+     associations are growing more rapidly than mutual: the per
+     capita amount on the whole population insured in the former
+     against damage from fire in 1861 was 116.6 thalers; in 1866,
+     154.2; in 1869, 176.6; in the latter in 1861, 103.5; 1866,
+     124.3; 1869, 154.3 thalers. (_Engel_, Statist. Zeitschr.,
+     1868, 268 ff.; 1871, 284 ff.) In France, in the former, in
+     1857, almost 36 milliards of francs; in the latter, in 1864,
+     13 milliards. (Mitth., 1871, 51.)]
+
+
+SECTION CCXXXVII (_b_).
+
+INSURANCE IN GENERAL.--ECONOMIC ADVANTAGES OF INSURANCE.
+
+The national-economic advantage of insurance consists in this, that the
+damage which is divided among many, and which, therefore, is felt but
+lightly by each one, is probably made up for, not by an inroad upon the
+body of still existing original resources, but by savings made from
+income. This, indeed, is unconditionally true only of such damage as
+does not depend at all on the will of man, such as, for instance, the
+damage caused by hail. On the other hand, there is especially in
+maritime[237b-1] and fire insurance,[237b-2] a great temptation to
+culpable and even criminal destruction; to the latter, when the object
+insured is estimated at too high a value. (Speculation-fires!) And it is
+difficult to say whether this drawback or that advantage is the greater.
+But, on the other hand, every kind of insurance is attended by good
+consequences to the credit of a people. It is of advantage to personal
+credit, since it prevents sudden impoverishment; but it is by far more
+advantageous to real-credit (_Realcredit_ = _material credit_) the
+pledges of which, while their forms may be destroyed, it preserves the
+value of; that is their economic essence. This last is most clearly
+manifest in the case of public insurance institutions, with compulsory
+participation; while in the case of entirely voluntary insurance, the
+creditor can never be certain that his debtor has not neglected
+something necessary. The aggregate danger is less than the sum of
+individual dangers, for the reason that it is more certain, and that
+uncertainty of itself is an element of danger.[237b-3] [237b-4]
+
+     [Footnote 237b-1: Even in Demosthenes' oration against
+     Zenothemis, we may see how easily the analogy of maritime
+     insurance may lead to criminal destruction of property.
+     Similar cases mentioned by _Pegolotti_ before the middle of
+     the 14th century. (Delia Decima dei Fiorentini, III, 132.)]
+
+     [Footnote 237b-2: French experience teaches that during a
+     commercial crisis there are more fires in mercantile
+     magazines than at other times; while in times when sugar is
+     a drug in the market, etc., many sugar factories are burned.
+     (Dictionnaire de l'Econ. polit, I, 88.) The style of our
+     house-building and fire-extinguishing institutions is wont
+     to improve with economic culture. Hence, for instance, in
+     Mecklenburg, 1651 to 1799, cities burned down, in whole or
+     in greatest part, 72 times; 1800 to 1850, only once.
+     (_Boll_, Gesch., von Mecklenb., II, 618 ff.) However, in
+     many countries the damage caused by fire has largely
+     increased: in Baden, for instance, by 100,000 florins a
+     year. Insurance capital, 1809 to 1818, 65 fl.; 1819 to 1828,
+     128 fl.; 1829 to 1836, 152 fl. (_Rau_, Archiv, III, 322.)
+     Similarly in Switzerland. In Bavaria, of every 10,000
+     buildings insured, in 1856-60, there were 4.6 fires per
+     annum; 1861-65, 5.04; 1866-69, 8.67. (Preuss. Statist.
+     Ztschr., 1871, 315.)
+
+     In Saxony, in 1849-53, there was one fire in every 290
+     buildings; 1854-58, in every 201; 1859-63, in every 180. Of
+     these fires, 68 per cent. of the whole number were from
+     known causes, i. e., 36.4 per cent. from incendiarism; 28.5
+     per cent. from negligence. (Saechs, Statist. Ztschr., 1866,
+     106, 115.) Even in antiquity, similar evil consequences
+     attended the generosity which gratuitously compensated
+     damage by fire. Compare _Juvenal_, III, 215 ff.; _Martial_,
+     III, 52. In England, of every 128 cases of damage by fire of
+     "farming stock," 49 were caused by incendiaries, for the
+     most part actuated by revenge. Hence, there, a notice is
+     posted on insured buildings by the insurance companies which
+     runs: "this farm is insured; the fire office will be the
+     only sufferer in the event of a fire." In London, of every
+     seven fires among the small trading class, one is estimated
+     to have been the work of an incendiary, and of all fires at
+     least one-third (Athenaeum, 2, Nov., 1867), if not one-half
+     (Mitth., 1879, 100). One of the largest English fire
+     insurance companies estimates that the introduction of the
+     lucifer match has caused it a damage of L10,000 per annum.
+     Of 9,345 fires, 932 were ascribed to gas, 89 to certain, and
+     76 to doubtful, incendiarism, 127 to lucifer matches, 8 to
+     storms, 100 to negligence, 80 to drunkenness, 2,511 to the
+     catching fire of curtains, 1,178 to candles, 1,555 to
+     chimneys, 494 to stoves, 1,323 to unknown causes. (Quart.
+     Rev., Dec, 1854, 14 ff.) Fires originate from criminal
+     (_dolose_) causes most frequently when a new stage in the
+     politico-economical development of a people is reached,
+     which renders the buildings put up in a former and lower
+     stage of development insufficient.]
+
+     [Footnote 237b-3: A Prussian fire insurance regulation, as
+     far back as 1720, expressly says: "everybody scruples to
+     make the least loan on pledged houses in towns." "Every care
+     shall be taken to make the least possible amount of loans in
+     cities." (_Jacobi_, in _Engel's_ Zeitschr., 1862, 122.)
+     _Leib_, Dritte Periode, etc., 1708, cites a proverb to the
+     effect that, in Hamburg, "no house takes fire;" that is, at
+     a time that its fire-fund-system (_Brandkassenwesen_) had as
+     yet found few imitators, _v. Justi's_ proposition to combine
+     the insurance of houses against fire with a loaning-bank for
+     houses. (Polizeiwissenschaft, 1756, I, Sec. 7, 8 ff.) In
+     Russia, in 1815, the loaning bank was the only fire
+     insurance company, which however assumed risks only on stone
+     houses at three-fourths of their value in consideration of
+     15 per 1,000 annual premium. (_Rau_, Lehrbuch, I, 229.)]
+
+     [Footnote 237b-4: _Spittler_, Politik., 441, objects to
+     insurance that it diminishes benevolence and approximates to
+     communism, thus hitting the dark side of all very high
+     civilization.]
+
+
+SECTION CCXXXVII (_c_).
+
+FIRE INSURANCE.
+
+The present system of fire insurance has been introduced in many places by
+the establishment of so-called domanial fire-guilds (_Domanial-Brandgilden_),
+by which the country population on crown-lands bound themselves to mutually
+assist one another by furnishing thatch, and horse and hand power in the
+rebuilding of burned houses. Whatever was wanting after this was made up by
+gratuitous supplies of wood from the public forests, by the granting of
+governmental fire-licenses to beg (_begging letters_), by permission to
+have collections made in the churches[237c-1] etc. The next step was
+generally the establishment of public insurance (_Landes-Assecuranz_) only
+for houses,[237c-2] but with compulsory membership. This compulsion was
+justified by the continuing interest of the state in the payment of the
+house-tax, as well as by the interest of the eventual owner of the estate,
+and of hypothecation-creditors.[237c-3] [237c-4] The insurance of moveable
+property is much more recent, both by reason of the nature of the property
+itself, which becomes of importance only at a later date, and also on
+account of the much greater difficulty of carrying on such
+insurance.[237c-5] The thought of making this species of insurance
+compulsory, or of turning it over to the state, has seldom been suggested.
+
+     [Footnote 237c-1: Thus in Austria, even after the middle of
+     the 18th century: _Schopf_, L. W. des oest. Kaiserstaates, I,
+     p. 175. In the mandate of the electorate of Saxony of Dec.
+     7, 1715; but the fire-fund (_Feuerkasse_) of 1729 depended
+     on voluntary but regular collections, besides which it
+     obtained certain contributions from the state and the
+     church. Those who gave nothing, however, were threatened
+     with getting nothing, or very little, in case of fire.
+     Parties desiring to rebuild massively had especially much to
+     expect. (Cod. August Forst., I, 538.) The charters of the
+     oldest German _Landesbrandkassen_ contain a provision that,
+     in future, no further fire-collections shall be allowed.]
+
+     [Footnote 237c-2: The English Hand-in-Hand Fire Office for
+     houses, founded in 1696; the Union Fire O., for houses and
+     movable property, in 1714: both mutual institutions. The
+     premium-institution, the Sun Fire Office, 1710
+     (_Frankenberg_, Europ. Herold, 1705, II, 181), mentions fire
+     insurance as a special characteristic of England. But we may
+     trace fire insurance on buildings and harvest supplies in
+     the low countries about the Vistula in Prussia, even as far
+     back as 1623. (_Jacobi_, loc. cit., 131.) Brandenburg
+     fire-fund, 1705, with voluntary admittance of all houses,
+     and fixed relation between the yearly contribution and the
+     insurance capital. If a fire happened, the fund repaired the
+     damage caused to the fullest extent its means allowed.
+     (_Mylius_, Corp. Const. March. V., I, 174 seq.) Even in
+     1706, it became necessary to prohibit speaking ill of the
+     institution. It was, therefore, abolished later. The first
+     Wuertemberg private fire insurance company, 1754, founded on
+     similar principles, and which was still existing in 1760,
+     had a like fate (_Bergius_, Polizei und Camerelmagazin, III,
+     40 ff.), but it was exchanged in 1773 for a mutual public
+     company. In Berlin a mutual insurance company in 1718
+     (_Bergius_, Cameralistenbibliothek, 151); in Denmark, 1830
+     (_Thaarup_, Daen. Statist., II, 173 seq.); in Silesia, 1742;
+     Calenberg-Grubenhagen, 1750; in Baden, 1758; in Kurmark,
+     1765; in Hildesheim, 1765; in Hesse-Darmstadt, 1777. In
+     France, the Parisian institution of 1745 is considered the
+     oldest. (_Beckmann_, Beitr. z. Gesch. d. Erfindd., I, 218.)]
+
+     [Footnote 237c-3: In Galenberg-Grubenhagen only the
+     _Bauerhoefe_ subject to the common burthens were obliged to
+     enter, in Hildesheim, all houses subject to taxation; in
+     Darmstadt all house-owners who were allowed only a _dominium
+     utile_. In Kurmark, the subjects of the estate might be
+     compelled to enter by their lords, but could not be kept
+     out. Of Prussian companies in 1846, entrance was compulsory
+     only in those of East Prussia and Posen. In Wuertemberg
+     compulsion since 1773; confirmed in 1853. Also in Zurich,
+     Jan. 24, 1832; in Schaffhausen Nov. 27, 1835. In Berne, only
+     for state, municipal and mortgaged houses; for the latter
+     only so far as it was not expressly left to the creditor.
+     Introduced into Baden in 1807, after most of the parishes
+     (_Gemeinden_) had voluntarily accepted it; confirmed in
+     1840. The provision that at least no judicial hypothecation
+     should be made on an un-insured house is found in the
+     Darmstadt law of 1777, Sec. 13, and in that of Mainz of 1780,
+     art. I, Sec. 15. _Rau_, Lehrbuch, II, Sec. 25 a., finds compulsion
+     in the case of property in common and in that of property
+     belonging to other persons very appropriate. It is a matter
+     worthy of thought, that, in cities like Berlin, Breslau,
+     Thorn and Stettin, compulsory fire insurance is still
+     retained. In Upper Silesia, the abolition of compulsory
+     provisions has had for effect to cause 52 per cent. of all
+     buildings to be insured. (Press Zeitschr, 1867, 329).]
+
+     [Footnote 237c-4: Question of introducing state insurance
+     into Hungary. As a cultured land, and one rich in capital,
+     is better adapted to insurance, it would be folly to
+     "emancipate" ones self from Trieste, etc. in this respect.
+     But, on the other hand, only state-insurance can attract the
+     Hungarians and make them feel universally the want of
+     insurance. A reconciliation of these opposing views might be
+     effected by compelling the peasantry to insure their farm
+     houses, and allowing complete liberty in the cities and with
+     reference to movable property.]
+
+     [Footnote 237c-5: Even _Bergins_, Polizei und Cameralmag.,
+     III, 80, 1768 ff., doubts the possibility of the insurance
+     of movable property. Insurance of movable property of the
+     Evangelical clergy in the electorate of Mark, in which,
+     however, only movable property of the value of 400 thalers
+     is considered. But by this provision the changeableness of
+     the object, which so facilitates fraud, was done away with.
+     Hamburg joint-stock company for the insurance of movable
+     property, 1779. Electorate of Saxony fire-fund for movable
+     property, 1784-1818, which, however, made good, as a rule,
+     only 25 per cent. of the damage caused. In Prussia, in 1814,
+     there were only 12 insurance companies in which movable
+     property could be insured. In the aggregate even they were
+     but of little extent, and had generally a partnership,
+     guild, or communal basis. (_Jacobi_, loc. cit, 123.) On the
+     other hand, in 1869, there were in all the mutual insurance
+     companies, 530,600,000 thalers worth of movable property
+     insured, besides 2,814,800,000 thalers worth of immovable
+     property, and 366,100,000 thalers worth of property of a
+     mixed nature, partly movable and partly immovable. (Preuss.
+     Statist. Zeitschr., 1876, 298.)]
+
+
+SECTION CCXXXVII (_d_).
+
+REQUISITES OF A GOOD SYSTEM OF FIRE INSURANCE.
+
+Among the chief requisites of a good fire insurance system are the
+following:
+
+A. The adoption in insuring of measures for the prevention of criminal
+abuse on the part of the insured. No one should be benefited by the
+burning of his insured goods.[237d-1] Hence, the rates of insurance
+should be rigidly fixed according to the real value in exchange.[237d-2]
+In the case of houses, the value of the incombustible elements of value
+should be deducted; also the value of the ground and the value it
+possesses from being advantageously situated, etc. The simultaneous
+insurance of the same object in several companies without proper notice
+being given should be unconditionally prohibited.[237d-3] The control of
+all this may be greatly facilitated by requiring foreign insurance
+companies to obtain a special permit to carry on their business in the
+country, and to allow them to effect insurance only through responsible
+home agents.[237d-4] Most insurance companies exclude from insurance
+personal property which may be easily secreted, such, for instance, as
+jewels, cash money, valuable documents, etc.
+
+B. There should be a just proportion between the insurance premium and
+the risk. This depends not only on the style of building of the houses
+themselves and of those in the neighborhood,[237d-5] on the situation,
+the too great intricacy (_Complicirung_) of which extends the ravages of
+fire, as its too great isolation makes assistance difficult;[237d-6] but
+also on the nature of the business carried on in them,[237d-7] and on
+the condition of the local development of fire police. Highly cultured
+places, especially large cities, are really much less exposed to damage
+from fire. To not take this into account would be not only to
+compulsorily dole out charity to the poorer classes of the people, and
+to the less cultivated portions of the country,[237d-8] but it would
+indirectly put an obstacle in the way of a transition to the massive
+construction of houses, and of good, that is, as a rule, of costly
+fire-extinguishing institutions.[237d-9] On the other hand,
+administration must be rendered much more difficult by the taking of
+risks of many degrees of danger, especially as it is scarcely possible,
+for a long time, to even hope for a statistically unassailable basis of
+a tariff graded in exact accordance with the risk.[237d-10] If those
+objects especially exposed to danger should be excluded altogether, the
+common utility of the institution would be largely diminished; and the
+insured least exposed to danger would nevertheless have to complain of a
+relatively too high contribution.[237d-11] If every peculiar class of
+risks were to be treated as one whole, the insuring principle itself
+would suffer.[237d-12] Where the nation or municipality engages in the
+business of compulsory insurance, its too rigid system of rate-fixing
+has something inequitable in it, inasmuch as it makes the most provident
+housekeeper suffer from the danger from fire of his neighbor's
+establishment, a gas factory, for instance.
+
+C. The certainty of compensation for damage suffered. The government
+should see to it that the institution does not promise more than it can
+perform with its joint-stock capital and by means of its
+premiums.[237d-13] The good will of foreign institutions to keep their
+promises to the letter is best assured by requiring them as a condition
+precedent of carrying on their business in a country, to bind themselves
+to litigate only in the home courts. They protect themselves against the
+risk of very large insurances by the system of re-insurance, by
+transferring a portion of the premium as well as of the risk to one or
+more other insurance companies.[237d-14]
+
+D. In all highly cultured quarters, the almost entirely voluntary
+fire-extinguishing system, in which the people turned out in a body to
+battle with the flames, made way for the fire-militia system; and if the
+latter should make place for what we may designate as a standing
+fire-army which is most easily attained in connection with the
+fire-insurance system, we should reach the ideal of such a system,
+especially if the business of insurance was in the hands of the state or
+of the municipality. Such a system would be in accordance with the
+principle of the division of labor, and, also, with the fact that
+usually the most vital interest is the greatest spur to action.[237d-15]
+
+     [Footnote 237d-1: The former almost unrestricted liberty of
+     the American system of insurance has recently been
+     curtailed, in most of the states, by a rigid governmental
+     superintendence, by special insurance boards with power to
+     permit companies to engage in the business of insurance, and
+     endowed with the right of imposing proper penalties, but of
+     declaring the privilege forfeited at the end of any year.
+     Compare _Braemer_ in III, Ergaenzungshefte der Preuss.
+     Statist. Ztschr. und Mitth., 1871, No. 1.]
+
+     [Footnote 237d-2: The first fire insurance provisions or
+     regulations paid little attention to the danger of
+     over-valuation. Similarly _v. Justi_, Abh. von der Macht,
+     Glueckseligkeit, etc., eines Staats. 1860, 81. Also
+     _Kruenitz_, Oekonom. Encyclopaedie, 1788, XIII, considers it
+     improbable that any one would have his home insured at a
+     higher than its real value. On the other hand, there were
+     formerly bitter complaints made in the United States that
+     the agents, on whom the determination of the rate of premium
+     and the control of the insurance-sum depended chiefly, were
+     led to make over-valuations in furtherance of their own
+     interests. (Mitth., 1871, 3; 1874, 95.)]
+
+     [Footnote 237d-3: If the valuation were made to depend on
+     the purchase price or on the cost of replacing or restoring
+     the damaged property, even this would be some temptation to
+     not entirely upright men. Hence the Baden law of 1840
+     expressly provides that instead of this, the selling price
+     shall be the basis; the law of 1852, Sec. 17, the medium cost
+     of the combustible parts, after deduction made of the
+     diminution in value caused by age. The fixing of premiums in
+     the case of houses should be repeated from time to time on
+     account of wear. According to the Calenb. Grubenh. law of
+     1823, Sec. 21, every 10 years. According to the Baden law of
+     1852, Sec. 28, 33, and the Wuerttemberg law of 1853, Sec. 12, the
+     city council should examine annually in what cases a new
+     valuation was necessary. The more certainly over-insurance
+     is avoided, the less need is there of the superintendence
+     policy adapted to a rather barbarous state of insurance,
+     that only a part of the value shall be made good. The
+     Phoenix fire insurance company in Baden for the insurance
+     of movable property has reserved the right to investigate at
+     any time and to satisfy itself as to the value of the
+     insured object, and to lower the amount insured in
+     accordance with its own opinion. The provision that the
+     valuation shall be made by the authorities of the place, or
+     that it shall be approved by them is frequently found. In
+     Saxony, for instance (law of Nov. 14, 1835), the Leipzig
+     city council gives its approval when it finds the amount
+     insured in keeping with the means of the insured, and
+     entertains no suspicions as to his honesty. To what a bad
+     state of things a less liberal course leads, see in
+     _Masius_, loc. cit., 85. This indeed is only difficult in
+     large cities. It is also to be considered that it is not so
+     much the many small amounts, but the few large ones that are
+     dangerous to insurance. The Prussian scheme wanted to give
+     up the police superintendence of insurance, but to punish
+     over-insurance of more than 5 per cent. of the common value,
+     by imposing a fine equal to the amount of over-insurance on
+     the insured, the agents, and on the conductors of the
+     business. (_Jacobi_, in II. Ergaenzhefte der Preuss. Statist.
+     Ztschr., 1869.) The provision that the amount paid as
+     damages for a burned house shall be immediately employed in
+     rebuilding, is to be explained in part by requisite A; in
+     part also by the same police-guardianship against presumed
+     negligence which introduced compulsory insurance.]
+
+     [Footnote 237d-4: Compare _Bruegemann_, Die Mobiliar V. in
+     Preussen nach dem G. von 1837.]
+
+     [Footnote 237d-5: _Oberlaender_, loc. cit. 108, calls
+     insurance without classification of risks, a "mutual
+     benevolent institution;" and one rigidly classified
+     according to the probable period of burning, "an institution
+     for the making of advances" (_Vorschuss-Anstalt._) In Baden,
+     even in 1737, there was no difference made between a massive
+     building and a wooden hut with a straw roof in the Black
+     forest. (_Rau_, Archiv., III, 324.) Here, there was in 1844
+     to 1849, an average damage by fire in houses with brick
+     roofs of 1,302 florins, with thatch roofs of 1,786 florins,
+     with shingle roofs of 2,292 florins, to say nothing of the
+     greater frequency of such damage in each succeeding class.
+     (_Rau_, Lehrbuch, II, 1, Sec. 26, a.) In Wuerttemberg, before
+     1843, the owners of insured personal property, in houses
+     with thatch roofs, had, in the same time, received 22 per
+     1,000 compensation for damage; in houses with brick roofs,
+     from 8 to 9 per 1,000. (_Rau_, loc. cit.) In 17 German
+     insurance companies, between 1866 and 1869, massive
+     buildings with hard roofs paid 1,003,000 thalers and
+     received 612,000 thalers; the not massive with hard roofs
+     paid 1,544,000 thalers and received 1,339,000; houses with
+     soft roofs paid 2,420,000 and received 2,792,000. (Preuss,
+     Statist. Zeitschr. 1861, 327.) Similar observations made in
+     Berne during 23 years.]
+
+     [Footnote 237d-6: While in most English insurance companies,
+     there are only three classes: common, hazardous, and doubly
+     hazardous, in Rhenish Prussian insurance companies, there
+     are seven, according to the style of building, and in each
+     class two subdivisions, according to the location.]
+
+     [Footnote 237d-7: According to an English average of 15
+     years, there is some damage from fire yearly in the
+     following classes of buildings and on the following
+     percentages:
+
+                            _Of the whole number_.
+          Match factories,         30.00
+          Lodging houses,          16.5
+          Hat makers,               7.7
+          Cloth makers,             2.6
+          Candle makers,            3.8
+          Smiths,                   2.4
+          Carpenters,               2.2
+          Oil and color dealers,    1.5
+          Book dealers,             1.1
+          Coffee houses,            1.2
+          Beer houses,              1.3
+          Bakeries,                 0.75
+          Wine dealers,             0.61
+          Small dealers in spices,  0.34
+          Eating houses,            0.86
+
+     (Quart. Rev., 1854, 23.) There is indeed a difference in the
+     intensity of these fires. For instance, in inns, there have
+     been a great many; but the damage has been for the most part
+     insignificant.]
+
+     [Footnote 237d-8: In Paris the houses insured had a value of
+     2,370,000,000 francs, but the damage from fire amounted to
+     only 0.016 per 1,000! (Dictionn. d'Econ. politique, I, 89.)
+     On an average, the premiums in France amount to 0.85 per
+     1,000. In Prussia, 1867-69 on an average: in the province of
+     Prussia, 9.46 per 1,000; Posen, 3.75; Brandenburg, Berlin
+     not included, 2.82; Pomerania, 2.52; Westphalia, 2.15;
+     Schleswig-Holstein, 2.09; Hanover, 1.99; Silesia, 1.68;
+     Saxony, 1.47; Hesse-Nassau, 1.46; the Rhine country, 1.34;
+     Sigmaringen, 0.56; city of Berlin, 0.28 per 1,000. (Preuss.
+     Statist. Zeitschr., 1871, 289.) How largely a higher
+     civilization tends to arrest the spread of fire by the
+     reason of the great facilities of rendering assistance is
+     shown by the fact that for 100 buildings totally consumed in
+     Posen, in 1837-40, there were 13.4 only injured: in 1866-69,
+     32 were injured for 100 totally consumed. In Prussian
+     Saxony, 1839-44, 34; 1867-69, 57. (loc. cit., 329.) In
+     Baden, the district called the _Seekreis_ got from the
+     fire-fund, in 1845-49, 80 per cent. more than it contributed
+     to it; the middle Rhine district contributed 37 per cent.
+     more than it received. The Bavarian Reza district, 1828-29,
+     received only 11.4 per cent. for damages, and paid 19 per
+     cent. of all premiums; the Lower Danube district, 10 and 8.8
+     per cent. (_Rau_, Lehrbuch, II, Sec. 28, 26.) The city of
+     Leipzig contributed from 1/19 to 1/17 of the insurance paid,
+     1864-68, to the insurance companies taking risks on real
+     property in the kingdom of Saxony, and received back only
+     from 1/662 to 1/114, although its fire extinguishing
+     institutions cost, in 1870, 26,182 thalers. (Official.)]
+
+     [Footnote 237d-9: Even premium-institutions have frequently
+     very different rates for the same risk, according as they
+     fear greater or less competition, or desire to recommend
+     themselves in a new place, etc. Hence the tricks of the
+     trade with which most of them surround their tariff.]
+
+     [Footnote 237d-10: In Wuertemberg, theaters, powder mills,
+     places where brick and lime are burned, porcelain factories,
+     iron-works, etc. cannot be insured at all. In
+     Calenb-Grubenh. and Bremen-Verden, shingle-roofed houses can
+     be insured only at 2/3 of their real value.]
+
+     [Footnote 237d-11: Thus, for instance, in the electorate of
+     Mark, each of the four classes of houses bears its own loss
+     alone. To the fourth class, for instance, belong smithies,
+     brick factories, and buildings with steam engines, etc. The
+     Baden law of 1852 puts the same burthen in the same place,
+     upon houses exposed to danger in a greater or lesser degree;
+     but provides for 4 classes (_Gemeindeclassen_) with
+     different rates of contribution, and assigns each _Gemeinde_
+     every year, according to the relative magnitude of the
+     losses of the previous year, to one of those classes. How
+     risky it is for large cities to confine their insurance,
+     because of the ordinarily small amount of damage to them
+     from fire, only to insurance institutions of their own, is
+     shown by the case of Hamburg in the year 1842, where three
+     joint stock insurance companies could pay only from 75 to 80
+     per cent., and the Bieber Mutual Insurance Company, only 20
+     per cent.]
+
+     [Footnote 237d-12: In the case of buildings, the greater
+     risk is generally calculated by correspondingly multiplying
+     the insurance-value, but in case of damage by fire, it is
+     simply made good.]
+
+     [Footnote 237d-13: In the insurance companies specified by
+     _Masius_, loc. cit., 176, the aggregate amount of their
+     insurance, stood to the amount necessary to cover it, by
+     means of receipts from premiums, reserve, and joint-stock
+     capital:
+
+     In the Leipzig Fire Insurance Company, as             100:1.87
+     In the Trieste Fire Insurance Company, as             100:1.80
+     In the Elberfeld Fire Insurance Company, as           100:1.19
+     In the Aix-Munich Fire Insurance Company, as          100:1.15
+     In the Cologne Colonia Fire Insurance Company, as     100:2.44
+     In the Karlsruhe Phoenix Fire Insurance Company, as   100:3.7
+     In the Berlin Fire insurance Company, as              100:6.3
+     In the Gotha, about as                                100:2.6
+      (including the four fold after payment note)
+
+     In the same companies the amount of damage and of expense
+     for the last preceding year were, on every 100 thalers, of
+     insurance, 46 pfennigs (1/300 thalers), 44, 29, 48, 67, 55,
+     35, 42; an average of 45, that is 1-1/2 per 1,000. Besides,
+     much depends on the degree to which the joint-stock capital
+     can be applied. Thus, for instance, in Berlin, on every
+     1,000 thalers 200 are paid in cash, and a note
+     (_Solawechsel_) given for the rest, payable in two months
+     after notice. Where the unpaid remaining stock is but a mere
+     book-debt, and may even be evaded by disclaiming the stock
+     itself, it of course affords very little security.]
+
+     [Footnote 237d-14: Compare _Volz._ Tuebinger Zeitschr. 1847,
+     349 ff.]
+
+     [Footnote 237d-15: The preparatory steps towards this ideal
+     were taken long ago. Thus, for instance, the
+     personal-property insurance companies have offered premiums
+     for special merit in extinguishing fires (Calenb.-Grubenh.,
+     1814, Sec. 35), saving things from a burning house is looked
+     after by the agents of personal property insurance
+     companies; compensation is almost universally made not only
+     for the damage done by fire, but also that caused while the
+     fire is being extinguished. The excellent fire-extinguishing
+     institutions of England are maintained by the common action
+     of the insurance companies. There have been complaints,
+     however, that they have shown a preference for insured
+     objects. (Mitth., 1874, 113.)]
+
+
+
+
+BOOK V.
+
+ON POPULATION.
+
+
+
+
+CHAPTER I.
+
+THEORY OF POPULATION.
+
+
+SECTION CCXXXVIII.
+
+INCREASE OF POPULATION IN GENERAL.
+
+That amid the thousand dangers which threaten the existence of the
+individual the species may endure, the Creator has endowed every class
+of organic beings with such reproductive power, and so much pleasure in
+propagating their kind, that if the action of these were entirely
+unrestricted, it would soon fill up the earth.[238-1] In the case of the
+human race, also, the physiological possibility of propagation has very
+wide limits.[238-2] It would be nothing extraordinary that a healthy
+pair, living in wedlock from the 20th to the 42nd year of the woman's
+life, that is, during the whole time of her full capacity to bear
+children, should rear six children to the age of puberty. This would,
+therefore, suffice to treble the population in a single generation;
+provided that all who had grown up should marry. According to
+Euler,[238-3] when the births were 5 per cent. and the deaths 2 per
+cent., the population doubled in not quite 24 years; when the increase
+was 2-1/2 per annum, in 28 years; when 2, in 35 years, and when 1-1/2
+per cent. in 47 years.
+
+The United States furnish us with a striking illustration of this
+doctrine, and on the grandest scale. There the natural increase of the
+white population, from 1790 to 1840, was 400.4 per cent.; that is in the
+first decade 33.9 per cent. of the population in 1790; in the second
+33.1, in the third 32.1, in the fourth 30.9, in the fifth 29.6 per
+cent.[238-4] [238-5]
+
+     [Footnote 238-1: Thus, for instance, the sturgeon can,
+     according to _Leuckart_, produce 3,000,000 eggs in a year.
+     According to _Burdach_, the posterity of a pair of rabbits
+     may be over 1,000,000 in four years; and that of a
+     plant-louse, according to _Bonnet_, over a 1,000,000,000 in
+     a few weeks. The prolificacy of a species of animals is wont
+     to be greater in proportion as the structure-material
+     (_Bildungsmaterial_) saved within a given time during the
+     course of individual life, is greater, and as material wants
+     during the embryonic period are limited; also
+     (teleologically), in proportion as to the danger the
+     individual is exposed to. Compare _Leuckart_ in _R.
+     Wagner's_ physiolog. Woerterbuch, Art. Zeugung.
+     Teleologically, _Bastiat_ says: _cette surabondance parait
+     calculee partout en raison inverse de la sensibilite, de
+     l'intelligence et de la force avec laquelle chaque espece
+     resiste a la destruction_. (Harmonies, ch. 16.)]
+
+     [Footnote 238-2: The researches of modern physiology make it
+     probable that an ovum is detached from the ovaries at each
+     period of healthy menstruation. (_Bischoff_, Beweis der von
+     der Begattung unabhaengigen periodischen Reifung und Loesung
+     der Eier bei den Saeugethieren und Menschen, 1844.) It is
+     hardly possible to ascertain how many of these ova are
+     capable of fecundation. Among the animals, on which the
+     greater number of accurate observations have been made, that
+     is in the case of horses, it has been found that, in the two
+     districts of Prussia most favorably conditioned, of 100
+     mares that had been lined, 63.3 became pregnant, and 53.5
+     gave birth to live foals; in the rest of the Prussian
+     monarchy, the births were only 46 per cent. Compare
+     _Schubert_, Staatskunde, VII, 1, 98. In the Belgian _haras_
+     (places for breeding horses), between 1841 and 1850, about
+     30 per cent. of the "leaps" proved fruitful, from 2 to 3 per
+     cent. aborted, the rest were either probably or certainly
+     unfruitful. (_Horn._, Statist. Gemaelde, 171.) In the human
+     species, also, the great number of first-born generated in
+     the first weeks of marriage, bears witness to a high degree
+     of procreative susceptibility.
+
+     On the other hand, the healthy male semen ejected during a
+     single act of coition contains innumerable germs, a very few
+     of which are sufficient to produce fecundation. (_Leuckart_,
+     loc. cit, 907.) According to _Oesterlen_, Handbuch der
+     medicischen Statistik, 1865, 196, from 10 to 20 per cent. of
+     all marriages were childless. In the United Kingdom, _Farr_,
+     report on the Census of 1851, estimated that in a population
+     of 27,511,000, there were 1,000,000 childless families, when
+     the term is allowed to embrace widows and widowers as well
+     as married couples.]
+
+     [Footnote 238-3: See the exhaustive table in _Euler_,
+     Memoires de l'Academie de Berlin 1756, in _Suessmilch_,
+     Goettl. Ordnung, I, Sec. 160. Bridge has constructed the
+     following formula:
+
+     Log. A = Log. P + n x Log.(1+(m-b)/mb).  Here P stands for
+     the actually existing population, 1/m = the ratio between
+     the annual mortality and the number of the living, 1/b, the
+     ratio of the number of annual births to the number of the
+     living, n the number of years, A, the population at the end
+     of three years, the quantity sought for.]
+
+     [Footnote 238-4: _Tucker_, Progress of the United States,
+     89, ff. 98. Here deduction is already made of immigrants and
+     their posterity, who after subtracting the loss by
+     emigration back to the old country, amounted to over
+     1,000,000. It probably amounted to more yet. If, as
+     _Wappaeus_ does (Bevoelekerungsstatistik, 1859, I, 93, 122
+     ff.), we calculate the rate of increase per annum, we have
+     an average during the first decade of 2.89, during the
+     second of 2.83, the third of 2.74, the fourth of 2.52, the
+     seventh of 2.39, the eighth (1860-70) of probably 2.25 per
+     cent. On the still greater ratio of increase in earlier
+     times, see _Price_, Observations on reversionary Payments,
+     1769, 4 ed. 1783, I, 282 seq., I, 260.
+
+     It was nothing unheard of to see an old man with a living
+     posterity of 100. (_Franklin_, Observations concerning the
+     Increase of Mankind, and the Peopling of New Countries,
+     1751.) It is said that in the region about Contendas, in
+     Brazil, there were on from 70 to 80 births a mortality of
+     from 3 to 4 per annum (how long?), and an unfortunate birth
+     (_ungluecklichen_) was scarcely ever heard of. Mothers 20
+     years of age had from 8 to 10 children; and one woman in the
+     fifties had a posterity of 204 living persons. (_Spix und
+     Martius_, Reise III, 525).]
+
+     [Footnote 238-5: Immense increase of the Israelites in
+     Egypt. (Genesis 46, 27; Numbers, 1.)]
+
+
+SECTION CCXXXIX.
+
+LIMITS TO THE INCREASE OF POPULATION.
+
+There is certainly one limit which the increase of no organic being can
+exceed: the limit of the necessary means of subsistence. But, so far as
+the human race is concerned, this notion is somewhat more extensive,
+inasmuch as it embraces besides food, also clothing, shelter, fuel, and
+a great many other goods which are not, indeed, necessary to life, but
+which are so considered.[239-1] We may illustrate the matter by a simple
+example in the rule of division. If we take the aggregate of the means
+of subsistence as a dividend, the number of mankind as divisor; then the
+average share of each is the quotient. Where two of these quantities are
+given, the third may be found. Only when the dividend has largely
+increased can the divisor and quotient increase at the same time
+(prosperous increase of population). If, however, the quotient remains
+unchanged, the increase of the divisor can take place only at the
+expense of the quotient (proletarian increase of population).[239-2]
+Hence it is to be expected that the quantity of the means of subsistence
+being given and also the requirement of each individual, the number of
+births and the number of deaths should condition each other. Where, for
+instance, the number of church livings has not been increased, only as
+many candidates can marry as clergymen who held such livings have died.
+The greater the average age of the latter is, the later do the former
+marry, in the average, and _vice versa_. And so, in the case of whole
+nations, when their economic consumption and production remain
+unaltered.[239-3] A basin entirely filled with water can be made to
+contain more only in case it is either increased itself, or a means is
+found to compress its contents. Otherwise as much must flow out on the
+one side as is poured in on the other.
+
+And so, everything else remaining stationary, the fruitfulness of
+marriages must, at least in the long run, be in the inverse ratio of
+their frequency. (See Sec. 247.)[239-4] [239-5]
+
+     [Footnote 239-1: When it is known that, in the Hebrides,
+     one-third of all the labor of the people has to be employed
+     in procuring combustible material (_McCulloch_, Statist.
+     Account, I, 319), it will no longer excite surprise that,
+     according to Scotch statistics, some parishes increase in
+     population after coal has been found in them, and others
+     decrease when their turf-beds are exhausted.]
+
+     [Footnote 239-2: Compare _Isaias_, 9:3. According to
+     _Courcelle-Seneuil_, Traite theorique et pratique d'Economie
+     politique, I, 1858, the _chiffre necessaire de la population
+     egal a la somme des revenus de la societe diminuee de la
+     somme des inegalites de consommation et divisee par le
+     minimum de consommation_: P=(R-J)/M.]
+
+     [Footnote 239-3: Thus _Suessmilch_, Goettliche Ordnung in den
+     Veraenderungen des menschlichen Geschlechts, 1st ed., 1742,
+     4th ed., 1775, I, 126 ff., assumes that one marriage a year
+     takes place, on from every 107 to every 113 persons living.
+     On the other hand, 22 Dutch towns gave an average of 1 in
+     every 64. This abnormal proportion is very correctly
+     ascribed by _Malthus_, Principles of Population, II, ch. 4,
+     to the great mortality of those towns: viz., a death for
+     every 22 or 23 persons living, while the average is 1:36.
+     The Swiss, _Mueret_, (in the Memoires de la Societe
+     economique de Berne, 1766, I, 15 ff.), could not help
+     wondering that the villages with the largest average
+     duration of life should be those in which there were fewest
+     births. "So much life-power and yet so few procreative
+     resources!" Here too, _Malthus_, II, ch. 5, solved the
+     enigma. The question was concerned with Alpine villages with
+     an almost stationary cow-herd business: no one married until
+     one cow-herd cottage had become free; and precisely because
+     the tenants lived so long, the new comers obtained their
+     places so late. Compare _d'Ivernois_, Enquete sur les Causes
+     patentes et occultes de la faible Proportion de Naissances a
+     Montreux: yearly 1:46, of the persons living, while the
+     average in all Switzerland was 1:28.
+
+     In France according to _Quetelet_, Sur l'Homme, 1835, I, 83
+     ff., there was:
+
+     ===============+===================+============+================
+                    |  _One marriage_   | _Children_ | _One death_
+          _In_      |     _a year_      |    _to a_  |   _yearly _
+                    |   _for every_     | _marriage_ | _for every_
+     ---------------+-------------------+------------+----------------
+      4 Departments |110-120 inhabitants|    3.79    |35.4 inhabitants
+     15      "      |120-130      "     |    3.79    |39.2      "
+     23      "      |130-140      "     |    4.17    |39.0      "
+     18      "      |140-150      "     |    4.36    |40.6      "
+     10      "      |150-160      "     |    4.43    |40.3      "
+      9      "      |160-170      "     |    4.48    |42.7      "
+      6      "      |170 and more "     |    4.48    |46.4      "
+     =================================================================
+
+     The two departments of Orne and Finisterre present a very
+     glaring contrast: in the former, one birth per annum on
+     every 44.8 (1851 = 51.6), a marriage on every 147.5, a death
+     on every 52.4 (1851 = 54.1) living persons; in the latter,
+     on the contrary, on every 26 (1851 = 29.8), 113.9 and 30.4
+     (1851 = 34.2). In Namur, the proportions were 30.1, 141,
+     51.8; in Zeeland, 21.9, 113.2, 28.5. (_Quetelet_, I, 142.)
+     The Mexican province, Guanaxuato, presents the most
+     frightful extreme: one birth per annum on every 16.08 of the
+     population living, and one death in every 19.7. (_Quetelet_,
+     I, 110.)]
+
+     [Footnote 239-4: Compare even _Steuart_, Principles, I, ch.
+     13. _Sadler_, Law of Population, 1830, II, 514:
+
+     =======================================+=============+===========
+                                            |_Marriages_  |_Children_
+                                            | _per annum_ |_on every_
+                                            | _on every_  |  _100_
+                                            | _10,000_    |_Marriages_
+                                            |_inhabitants_|
+     ---------------------------------------+-------------+-----------
+
+        In the purely Flemish provinces     |             |
+          of Belgium                        |     128     |  481
+        In the purely Wallonic provinces    |             |
+          of Belgium                        |     139     |  448
+        In the mixed provinces of Belgium   |     152     |  425
+        In Holland                          |     148     |  476
+        In Lombardy                         |     166     |  489
+        In Bohemia                          |     173     |  413
+        In the kingdom of Saxony            |     170     |  410
+     =======================================+=============+===========]
+
+     [Footnote 239-5: Compare _Horn_, Bevoelkerungswissenschaftliche
+     Studien, I, 162 ff., 191, 252 ff. In most countries, there
+     is a much larger number of children to a marriage in the
+     rural districts than in the cities; but at the same time,
+     marriages are much less frequent there. In Saxony, however,
+     where the cities show a greater marital productiveness, the
+     rural districts present a large number of marriages. Of the
+     10 countries compared by _Wappaeus_, II, 481 ff., only
+     Prussia and Schleswig are exceptions to the rule.]
+
+
+SECTION CCXL.
+
+INFLUENCE OF AN INCREASE OF THE MEANS OF SUBSISTENCE.
+
+The sexual instinct and the love for children are incentives of such
+universality and power, that an increase of the means of subsistence is
+uniformly followed by an increase in the numbers of mankind. _Partout,
+ou deux personnes peuvent vivre commodement, il se fait un mariage._
+(_Montesquieu._) Thus after a good harvest, the number of marriages and
+births is wont to considerably increase; and conversely to diminish
+after bad harvests.[240-1] [240-2] [240-3] In the former case, it is
+rather hope than actual possession which constitutes the incentive to
+the founding of new families. Hence the greatest increase is not found
+in connection with the absolutely lowest price of corn, but with those
+prices which present the most striking contrast to those of a previous
+bad year.[240-4]
+
+The introduction of the potato has promoted the rapid increase of
+population in most countries. Thus, the population of Ireland in 1695,
+was only 1,034,000; in 1654, when the cultivation of the potato became
+somewhat more common it was 2,372,000; in 1805, 5,395,000; in 1823,
+6,801,827; in 1841, 8,175,000. In 1851, after the fearful spread of the
+potato-rot it fell again to 6,515,000.[240-5] In general, every new or
+increasing branch of industry, as soon as it yields a real net product
+is wont to invite an increase of population. Machines, however, have not
+this effect only when they operate to produce rather a more unequal
+division of the national income than an absolute increase of that
+income.[240-6]
+
+     [Footnote 240-1: That rich food directly increased
+     prolificacy is proved from the fact that, for instance, our
+     domestic animals are much more prolific than wild ones of
+     the same species. Compare _Villerme_, in the Journ. des
+     Economistes VI, 400 ff. The months richest in conceptions
+     fall universally in the spring, and again in the pleasant
+     season immediately following the harvest. On the other hand,
+     during the seasons of fast in the Catholic church the number
+     of cases of conception is below the average. (Jour. des
+     Econ., 1857, 808).]
+
+     [Footnote 240-2: Thus the annual mean number of marriages
+     amounted to:
+
+     =============================================
+                   | _Between 1841_ |  _In 1847_
+                   |  _and 1850._   |   _alone._
+     --------------+----------------+-------------
+     In Saxony,    |     15,505     |    14,220
+     In Holland,   |     22,352     |    19,280
+     In Belgium,   |     28,968     |    24,145
+     In France,    |    280,330     |   249,797
+     =============================================
+
+     _Horn_, loc. cit. I, 167. In the governmental district
+     (_Regierungsbezirke_) of Duesseldorf, there was in the years
+     of scarcity, 1817 and 1818, one marriage for every 134 and
+     137 souls; on the other hand, in 1834 and 1835, in every 103
+     and 105. (_Viebahn_, I, 120 seq.) In England, the variations
+     in the yearly price of corn are reflected in the variations
+     in the number of yearly marriages. Thus, in 1800, 114
+     shillings per quarter; 1801, 122 shillings; 1802 (Peace of
+     Amiens), 70 shillings; 1803, 58 shillings. The number of
+     marriages in the four years respectively was 69,851, 67,288,
+     90,396, 94,379. (_Porter_, Progress of the Nation, III, ch.
+     14, 453.)
+
+     Similarly in Germany, in 1851, the conclusion of peace
+     increased the number of marriages, and the scarcity of 1817
+     diminished it. In Prussia, in 1816, there was one marriage
+     for every 88.1 of the population; in 1828, for every 121.4;
+     in 1834 (origin of the great Zollverein), for every 104; in
+     1855, for every 136.4; in 1858 (hope of a new era), in every
+     105.9. (_v. Viebahn_, Statistik des Zollvereins II, 206.)
+
+     In Austria, the price of rye was:
+
+     ==============================================
+               |  _Per Metze._  |   _No. of_
+               |              | _Marriages._
+     ----------+--------------+--------------------
+     In 1851,  | 2.47 florins |  336,800
+     In 1852,  | 2.11   "     |  316,800
+     In 1853,  | 3.38   "     |  283,400
+     In 1854,  | 4.36   "     |  258,000
+     In 1855,  | 4.43   "     |  245,400 (_Czoernig._)
+     ==============================================
+
+     On Sweden, see Wargentin in _Malthus_, II, ch. 2.
+
+     The decreased number of births in consequence of a bad
+     harvest, and _vice versa_, appears of course only during the
+     following calendar year. Thus, in 1847, as compared with the
+     average of the years 1844 and 1845, there were fewer
+     children born in England by 4 per 1,000, in Saxony by 7 per
+     1,000, in Lombardy by 59, in France by 63, in Prussia by 82,
+     in Belgium by 122, in Holland by 159 per 1,000. (_Horn_, I,
+     239 ff.) In Germany, the conscription-years corresponding to
+     the scarcity time, 1816-17, gave a _minus_ of 25 per cent.
+     in many places below the average. (_Bernouilli_,
+     Populationistik, 219.) In the case of marriage, the relative
+     increase or decrease is still more characteristic, so far as
+     our purpose is concerned, than the absolute increase or
+     decrease. Thus in Belgium, for instance, against 1,000
+     marriages dissolved by death, there were, in 1846, only 971
+     new ones contracted, and in 1847 only 747; while in 1850
+     there were 1,500. The falling off in Flanders alone was
+     still greater. Thus, in 1847, there were only 447 marriages
+     contracted for 1,000 dissolved. (_Horn_, I, 170 ff.)
+     However, _Berg_, using Sweden as an illustration, rightly
+     calls attention to the fact, that the variations in the
+     number of marriages and births is determined in part by the
+     number of adults, that is, of the number of births 20 and
+     more years before. Compare _Engel's_ Statist. Zeitschr.,
+     1869, 7.]
+
+     [Footnote 240-3: Sometimes, a sudden increase in the
+     frequency of marriages may have very accidental and
+     transitory causes. Thus, for instance, in France in 1813,
+     when the unmarried were so largely conscripted, the number
+     of marriages rose to 387,000, whereas the average of the
+     five previous years was 229,000. (_Bernouilli_,
+     Populationistik, 103.)]
+
+     [Footnote 240-4: Thus, for instance, in nearly all countries
+     affected by the movement of 1848, there were, during the
+     last months of that year, an unusually large number of
+     conceptions. (_Horn_., I, 241 seq.) According to
+     _Dieterici_, Abh. der Berliner Akademie, 1855, 321 ff.,
+     there was one birth a year for the number of persons living.
+
+     ========================================================
+                 | _Ten years' average._ |   _1849 alone._
+     ------------+----------------------------+--------------
+     In France,  |         36.19         |       35.79
+     In Tuscany, |         24.42         |       22.82
+     In Saxony,  |         24.51         |       23.08
+     In Prussia, |         25.5          |       23.62
+     ========================================================
+
+     The great majority of men at that time believed all they
+     liked to believe.]
+
+     [Footnote 240-5: _Marshall_, Digest of all Accounts, I, 15.
+     _Porter_, I, ch. I, 9.]
+
+     [Footnote 240-6: _Wallace_, in this respect, places industry
+     far behind agriculture. (On the Numbers of mankind in
+     ancient and modern Times.) The county of Lancashire had, in
+     1760, that is shortly before the introduction of the great
+     machine industry, 297,000 inhabitants; in 1801, 672,000; in
+     1831, 1,336,000; in 1861, 2,490,000. Saxony has, in almost
+     every place, a relatively large number of births in
+     proportion as in any locality, commerce and industry
+     preponderate over agriculture, and _vice versa_. See
+     _Engel_, Bewegung der Bevoelkerung im K. Sachsen, 1854. But
+     this should not be generalized into a universal law. For
+     instance, Prussia and Posen have an average number of births
+     greater than that of the Rhine country and Westphalia. (_v.
+     Viebahn_, Statistik des L. V, II, 222.)]
+
+
+SECTION CCXLI.
+
+EFFECT OF WARS ON POPULATION.
+
+We may now understand why it is that only those wars which are
+accompanied by a diminution of the sources of the means of support
+decrease population. The loss in the numbers of mankind produced by
+wars, hardships, etc., would, as a rule, be readily made up for by
+increased procreation.[241-1] Thus, for instance, in Holland, the long
+Spanish war permitted an increase of the population for the reason that
+the national wealth increased at the same time; while the short war with
+Cromwell, which curtailed commerce, caused 3,000 houses in Amsterdam
+alone to remain empty.[241-2] In England and Wales, the population
+increased during the most frightful war of modern times, from 8,540,000
+in 1790, to over 12,000,000 in 1821; in France, from, probably,
+26,000,000 or 27,000,000 in 1791, to 29,217,000 in 1817. England,
+indeed, was itself never the seat of war, and its commerce was increased
+by the war in some directions as much as it was diminished by it in
+others. France's own territory was devastated only in the first and in
+the last years of the war. But the Revolution had, on the whole, once
+the storms of the Reign of Terror were over, not only more equally
+divided the means of subsistence in France, but it had developed them in
+a higher degree.[241-3] [241-4]
+
+It cannot even be unconditionally predicated of emigration, that it
+hinders the increase of population. As soon as people have begun to
+calculate upon emigration, as a resort for themselves in case of
+distress, or upon the emigration of others, by which they would be left
+a larger field for action at home, a number of marriages is contracted
+and a number of children born; which would otherwise not have been the
+case. Most men, especially when young and enamoured, hope for the
+realization of all their wishes. Favorable chances, open to a great
+number of men alike and which every one thinks himself competent to
+calculate, are commonly over-estimated by the majority.[241-5] (See Sec.
+259.)
+
+     [Footnote 241-1: The war of 1870-71 cost Germany 44,890
+     lives. (Preuss. Statist. Ztschr., 1872, 293.) This number is
+     not quite 20 per cent. of the excess of births (794,206)
+     over deaths (563,065) in Prussia in the year 1865. On the
+     other hand, in from 1856 to 1861 there were 10,000 cases of
+     murder and manslaughter in all Europe, Turkey excepted.
+     (_Hausner_, Vergl. Statistik, I, 145.) About the end of the
+     last century, it was estimated that about 1,000,000 children
+     were born annually in France. (_Necker_, Administration des
+     Finances, I, 256.) Of these, about 600,000 outlived their
+     18th year. (_Peuschet_, Essai de Statistique, 31.) There
+     were, annually, about 220,000 marriages. Hence the number of
+     the unmarried was increased annually by 80,000 young men,
+     who, according to _Peucshet_ (32), amounted to over
+     1,450,000. According to this, the number of recruits, per
+     annum, might amount to hundreds of thousands without causing
+     any appreciable diminution in the number of births and
+     marriages. Compare _Malthus_, Principle of Population, II,
+     ch. 6. On the other hand, long continued wars have the
+     effect of keeping the men physically strongest from
+     marriage, and so to deteriorate the race.]
+
+     [Footnote 241-2: Richesse de Hollande, I, 149. During the
+     Amsterdam commercial crisis, from 1795 to 1814, there were
+     for every 4 births an average of 7 deaths. So that the
+     population, in 1795, was still 217,000, and in 1815, only
+     180,000. (_Bickes_, Bewegung der Bevoelkerung Anhang, 28.)]
+
+     [Footnote 241-3: On the other hand, the population of East
+     Prussia, between 1807 and 1815 diminished 14 per cent. (_v.
+     Haxthausen_, Laendl. Verfassung der Preuss. Monarchie, I,
+     93.) The battles of the Seven Years' War are said to have
+     consumed 120,000 Russians, 140,000 Austrians, 200,000
+     Frenchmen, 160,000 Englishmen, Hanoverians, etc., 25,000
+     Swedes, 28,000 of the troops of the empire, and 180,000
+     Prussians. Yet the population of Prussia fell off 1,500,000.
+     (_Frederic_, Oeuvres posthumes, IV, 414; Preuss. Gesch.
+     Friedrich's M., II, 349.) During the Thirty Years' War, the
+     population of Bohemia fell from 3,000,000 to 780,000.
+     (_Mailath_, Gesch. von Oesterr, III, 455.) Wuerttemberg,
+     according to the military recruiting lists had a population,
+     in 1622, of 300,000 inhabitants. (_Spittler_, Werke, XII,
+     34.) In 1641, the population was only 48,000; according to a
+     promotion-speech of _J. B. Andreae_. But between 1628 and
+     1650, more than 58,000,000 florins were lost by war
+     contributions, and about 60,000,000 florins by plunder;
+     about 36,000 private houses were in ruins. (_Spittler_,
+     Wuertt. Gesch., 254.) On Alsace, Freisingen and Goettingen,
+     see _Londorp_, Bellum sexenn., II, 563; _Zschocke_,
+     Bayerische Geschichte, III, 302; _Spittler_, Hanov. Gesch.,
+     II, 37 ff., 114. On Germany generally, see _R. F. Hanser_,
+     Deutschland nach dem dreissigjaehrigen Kriege, 1862. However,
+     many estimates of the diminution of the population are
+     exaggerated, because it has not been considered that a great
+     part of the men who disappeared in one place fled to
+     another, for the time being more secure. Compare _Kius_ in
+     _Hildebrand's_ Jahrb., 1870, I ff.
+
+     The population of Massachusetts increased 8,310 yearly,
+     before the War of Independence; during the war, only 1,161,
+     although the enemy scarcely ever entered the country.
+     (_Ebeling_, Gesch. und Erdbeschreib. der V. Staaten I, 236.)
+     Russia had a mortality during the war years, 1853-55, of
+     2,272,000, 2,148,000, and 2,541,000; in the years of peace
+     previous, 2,000,000 at most.]
+
+     [Footnote 241-4: Besides the mere loss of men, war operates
+     destructively on production, since it affects especially the
+     most productive classes as to age, while pestilence, famine,
+     etc., carry off children, old people, and the feeble. Hence,
+     a people's public economy recovers more readily from the
+     last named misfortune than from war.]
+
+     [Footnote 241-5: Compare _Giov. Botero_, Della Cause della
+     Grandezza della Citta, L. II, and Ragion di Stato, VIII, 95;
+     where colonization is compared to the swarming of bees. _W.
+     Raleigh_, Discourse of War in general, Works VIII. 257 ff.
+     Similarly _Child_, Discourse of Trade, 371 ff. _Ustariz_,
+     Teoria y Practica del Commercio, 1724, ch. 4. _Franklin_,
+     Observations on the Increase of Mankind, which reminds one
+     of the continued growth of polyps.]
+
+
+SECTION CCXLII.
+
+COUNTER TENDENCIES TO THE INCREASE OF POPULATION.
+
+The extension of economic production is always a labor; the surrender of
+one's ordinary means of subsistence to new comers, a sacrifice; but, on
+the other hand, the procreation of children is a pleasure. Hence it
+seems to be incontestably true that the powers of increase of
+population, considered from an entirely sensuous point of view, tend to
+go beyond the bounds of the field of food. Malthus gave expression to
+this fact by saying that population had a tendency to increase in a
+geometrical progression, but the means of subsistence, even under the
+most favorable conditions, only in an arithmetical progression.[242-1]
+If the word "tendency" be correctly understood in the sense in which
+Malthus employed it, so that the reality appears as the product of
+several and partly opposite tendencies,[242-2] the first half of his
+allegation can scarcely be contested.[242-3] If a father has three sons,
+and each of the three three in turn, the love of procreation and the
+power of procreation, all being in the normal condition of health, are
+precisely three times as great in the second generation as in the first,
+and nine times as great in the third, etc. The second half of Malthus's
+principle is more open to doubt. If it be true, as has been asserted,
+that man's means of subsistence consist solely of animals and plants,
+and these, as well as man, increase in a geometrical ratio, and usually
+even with a much larger multiplier, yet it is here, surprisingly enough,
+overlooked that their natural increase is interrupted by the consumption
+of them by man. On the other hand, it is true that even raw material, by
+means of more skillful technic processes (Sec. 134, 157), and the values by
+which man ennobles them, may always increase in a greater ratio than a
+merely arithmetical one. (Sec. 33).[242-4] But, that, in the long run, the
+means of subsistence should keep pace with the extreme of sensuous
+desire and of physiological power, is utterly incredible. Hence, the
+latter tendency is limited by others.
+
+A. And indeed, firstly, by repressive counter-tendencies. As soon as
+there is a larger population in existence than can be supported, the
+surplus population must yield to a mournful necessity; in a favorable
+case, to that of emigration, but usually to hunger, disease and misery
+generally.
+
+"The earth," says Sismondi, "again swallows the children she cannot
+support." It is the weakest especially who are elbowed off the bridge of
+life, over which we pass from birth to the normal death from old age,
+because there is not room enough on it for all. Hence the frightful
+mortality among the poorer classes and in childhood. Now it is the
+absence of a healthy habitation,[242-5] or of proper clothing, or, in
+the case of children, of rational superintendence[242-6] which sows the
+germs of a thousand diseases; and now the absence of proper care, rest
+etc., which intensifies these diseases. Every bad harvest is wont, when
+its consequences are not alleviated by a high and healthy civilization,
+to increase mortality. (Sec. 246, 9). Thus, in Sweden, during the second
+half of the 18th century, the average yearly mortality was = 1:39-40. On
+the other hand, in the bad year 1771 = 1:35.7; 1772 = 1:26.7, and in
+1773, as an after consequence, 1:19.3. In this last, although it was a
+fertile year, there were only 48 births to every 100 deaths.[242-7]
+Among nations low down in civilization, the repressive counter tendency
+may assume a very violent character. How many cases of murder, human
+sacrifice, and even war, have been occasioned by over-population and
+famine.
+
+B. Secondly, by preventive counter tendencies.[242-8] The person who
+believes himself unable to support children refrains from begetting
+them. This, we may call one of the most natural of duties. We might even
+say that the person who begets a child which he knows he is not in a
+condition to support, is guilty of a grievous sin against civil society,
+and of a still more grevious one against his poor child. Strange! To
+beget a child with countless wants, with an immortal soul! That is
+certainly an act the most pregnant with consequences which any ordinary
+man can perform in his life; and yet how thoughtlessly it is performed
+by the majority!
+
+This counter-tendency is to be found only in the case of man. Plants and
+animals yield to the sexual instinct regardless of everything.[242-9]
+Where there is no question whatever of having food enough to support
+children, as is the case with the better-to-do classes, the dread of
+losing the decencies of life, or of "losing caste," acts as a
+preventive[242-10] [242-11] to the founding a family, or increasing the
+numbers of one. Unfortunately, abstinence from the procreation of
+children may be exercised not only in accordance with the moral
+law,[242-12] but also, in contravention of it.[242-13] There is a
+necessary connection between human reason and human freedom and the
+possibility of misusing them. And it is certainly the inevitable fate of
+man either to place a morally rational check on the sexual impulse, or
+to be forcibly held within the limits of the means of subsistence, since
+they cannot be over-stepped by him--through the agency of vice and
+misery.[242-14] [242-15]
+
+     [Footnote 242-1: Principle of Population, I, ch. I. Adam
+     Smith also implicitly held the view that the demand for the
+     means of subsistence is always in advance of them. Wealth of
+     Nat., I, ch. II, pref. and P. I.]
+
+     [Footnote 242-2: This may be represented by what physicists
+     call the "parallelogram of forces." Compare _Senior_,
+     Outlines, 47. _Malthus'_ own explanation of "tendency," in
+     his letter at the end of _Senior_, Two Lectures on
+     Population, 1829.]
+
+     [Footnote 242-3: On the inaccuracy of the expression,
+     "geometrical progression," in the present case, see _Moser_,
+     Gesetze des Lebensdauer, 1839, 132.]
+
+     [Footnote 242-4: _Weyland_, Principles of Population and
+     Production, 1816, 25 ff.]
+
+     [Footnote 242-5: In Paris the mortality is greater in the
+     _arrondissements_ in proportion to their poverty, of which
+     the relative numbers of untaxed dwellings afford a
+     criterion. According to this, between 1822 and 1826,
+
+     =========================================================
+         _The       | _Had a yearly mortality |  _Locations
+     Arrondissement_|    of  1 in every_      | non imposees._
+     ---------------+-------------------------+---------------
+         II,        |     71 of population.   |     0.07
+        III,        |     67    "             |     0.11
+          I,        |     66    "             |     0.11
+         IV,        |     62    "             |     0.15
+         XI,        |     61    "             |     0.19
+         VI,        |     58    "             |     0.21
+          V,        |     64    "             |     0.22
+        VII,        |     59    "             |     0.22
+          X,        |     49    "             |     0.23
+         IX,        |     50    "             |     0.31
+       VIII,        |     46    "             |     0.32
+        XII,        |     44    "             |     0.38
+     =========================================================
+
+     _Villerme_, in the Journal des Econ., Novbr. 1853. The
+     average house-rent in _arrondissement_ II, amounted to 605
+     francs per annum; in III, to 426; in I, to 498; in IX, to
+     172; in VIII, to 173; in XII, to 148 francs. Doctor Holland
+     divided all the streets in Manchester into three classes,
+     and each class, in turn, into three sub-classes, according
+     to the qualities of the dwellings. The yearly mortality in I
+     a was 1:51; in I b = 1:45; I c = 36; II a = 1:55; II b =
+     1:38; III c = 1:25. (Report of Inquiry into the State of
+     large Towns and Populous Districts, 1843.)]
+
+     [Footnote 242-6: In Prussia, the Jewish population, between
+     1822 and 1840, increased 34-1/2 per cent.; the Christians
+     only 28-1/2 per cent.; although among the Jews there was
+     only one marriage a year in every 139, and one birth in
+     every 28; among the Christians, in every 112 and 25. This is
+     accounted for, mainly by the favorable circumstances that
+     Jewish mothers leave their homes seldomer to work outside,
+     and thereby devote more attention, even in the lower
+     classes, to the care of their children.]
+
+     [Footnote 242-7: _Wappaeus_, Allg. Bevoelkerungsstatistik, I,
+     315. In Thurgau, in 1815, the mortality was = 2,143, in 1817
+     = 3,440; in Luzerne, in 1820 = 1,543, in 1817 = 3,511.
+     (_Bernouilli_, Populationistik, 219.) And so in London
+     between 1601 and 1800, when the five dearest and five
+     cheapest years of each decade are taken together, the
+     aggregate mortality in the dearest was 1,971,076, in the
+     cheapest, 1,830,835. (_Farr_, in the Statist. Journal, 1846,
+     163 ff.) The rule did not apply to the time 1801-1820; but
+     it did again to the time 1821-1840 (l. c., 174). Compare
+     _Messance_, Recherches sur la Population, 311; _Roscher_,
+     Kornhandel und Theuerungspolitik, 54 ff. When scarcity
+     continues a longer time, the mortality sometimes decreases
+     on account of the largely diminished number of small
+     children. In Lancashire, the number of deaths during the
+     commercial crisis, 1846-47, was 36 per cent. greater than
+     the average of the three last preceding years; in 1857-8 it
+     was 11.9 per cent. greater. (_Ausland_, 1862, No. 44.)]
+
+     [Footnote 242-8: _Malthus_ uses the word "preventive check,"
+     while he calls the repressive counter-tendencies "positive."
+     _R. Mohl_, Polizeiwissenschaft, I, 88, speaks of preventive
+     and destructive causes. Anteriorly and subsequently
+     operating causes. (_Knapp_).]
+
+     [Footnote 242-9: Hence the infinite productiveness of
+     irrational organisms is limited only by their mutual
+     struggle for the means of support. That which cannot live
+     there dies. "In this case there can be no artificial
+     increase of food, and no prudential restraint from
+     marriage." (_Darwin_, Origin of species, 4 ed. 1866, 73.)
+     Compare _B. Franklin_, Observations concerning the Increase
+     of Mankind, Sec. 21. _Lamennais_, indeed, asserts that no plant
+     and no animal takes away food from any other; that the earth
+     has room for all!]
+
+     [Footnote 242-10: The rule that population tends to extend
+     everywhere as far as the means of subsistence will permit,
+     _Sismondi_, N. Principes, VII, ch. 3, has taken occasion to
+     ridicule, basing himself on the example of the Montmorency
+     family. This family has, notoriously, always lived in
+     superabundance, and is, notwithstanding, on the verge of
+     extinction. _Sismondi_ here forgets the relativity of the
+     idea "means of subsistence." Persons occupying an exalted
+     social position not only think that they want more in this
+     respect, but they are wont in forming marriage contracts to
+     use the greatest and frequently exaggerated caution. Hence
+     it is that families of this rank become, relatively
+     speaking, frequently extinct; and, moreover, such a fact is
+     here most frequently taken notice of. _Sadler_, Law of
+     Population, 1830, infers from the frequent extinction of
+     English noble families, that wealth leads to sterility; and,
+     on the other hand, poverty (but not famine!) to prolificacy;
+     and _Doubleday's_ (True Law of Population, 12 ff.)
+     suggestion, in explanation hereof, that over-fed animals and
+     over-manured plants are sterile, as ably refuted in the
+     Edinburg Rev., LI. It is there shown that the marriages of
+     the English peers are fruitful above the average; that their
+     extinction is partly due to the fact that the younger sons
+     seldom married, and that hence there is a lack of collateral
+     relations. But, in great part, such extinction is only
+     apparent; since such a family is said to be extinct when
+     only the male stem is extinct. The French nobility, from the
+     9th to the 11th century, continually increased in number.
+     After this, the succession of females and cases of
+     extinction became more frequent, because the nobility, in
+     order to keep their estates together, began to not desire
+     many sons. _Sismondi_, Hist. des Francais, V, 182. Compare
+     _Benoiston de Chateauneuf_, De la Duree des Familles nobles
+     en France, in the proceedings of the Academie des Sciences
+     morales et politiques, II, 792 ff. Besides, between 1611 and
+     1819, 763 English baronet families became actually extinct,
+     653 continued to exist, and 139 had been raised to the
+     peerage; an average of from 3 to 4 peer families became
+     extinct yearly. (Statist. Journal, 1869, 224.) There were,
+     about 1569 2,219 Venetian _nobili_; in 1581, 1,843 (_Daru_,
+     VI, 240 ff.); in Addison's time (1705), only 1,500. On the
+     decrease of the Roman patricians, see _Dionys._, Hal., I,
+     85; _Tacit._, Ann., XI, 25; on that of the Spartan knights:
+     _Clinton_, Fasti Hellenici, II, 407 ff.; of the _ehrbaren
+     Geschlechter_, at Nuernberg: _Hegel_, N. Stadtchroniken,
+     1862, 214. Compare, also, Westminster Rev., Oct., 1849.]
+
+     [Footnote 242-11: How, in England, not only many
+     distinguished persons, but also their servants, are kept
+     from marriage in this way, because they are sure of not
+     being able to satisfy the wants of their bachelorhood as
+     fathers of families, see in _Malthus_, P. of P., II, ch. 8.
+     A description of the general misery which would result if
+     all men consumed only that which was physically
+     indispensable, in _Senior_, Outlines, 39.]
+
+     [Footnote 242-12: See _Bastiat's_ beautiful words, in which
+     he characterizes the holy ignorance of children, the modesty
+     of young maidens, the severity of public opinion, etc., as a
+     law of limitation: (Harmonies, 437 seq.)]
+
+     [Footnote 242-13: Compare _Proudhon_, Contradictions, ch.
+     13.]
+
+     [Footnote 242-14: That want of employment or of business has
+     rather a preventive tendency, see _Malthus_, Principle of
+     Population, VII, ch. 14.]
+
+     [Footnote 242-15: _Malthus_, P. of P., II, ch. 13. I
+     formerly called this natural law by the name of the
+     investigator who earned the largest share of scientific
+     merit in connection therewith. It cannot, indeed, be said,
+     that he was the first to observe it. Compare even
+     _Machiavelli_, Discorsi (between 1515 and 1518), II, 5. And
+     so _Giovanni Botero_ taught that the number of the
+     population depended not so much on the number of
+     _congiungimenti_ so much as on the rearing of children.
+     (Ragion di Stato, 1592, VII, 93 ff.) The _virtu generativa
+     degli uomini_, which is always the same, is found face to
+     face with the _virtu nutritiva delle citta_. The former
+     would continue to operate _ad infinitum_, if the latter did
+     not limit it. The larger a city is, the more difficult it is
+     to provide it with the means of subsistence. In the last
+     instance, the slave-sales of Guinea, the cannibalism of the
+     Indians, the robber-system of the Arabians and the Tartars,
+     the migration of nations, crimes, litigation, etc., are
+     traced back to the narrowness of the means of subsistence.
+     (Delle Cause della Grandezza delle Citta, 1598, Libr. III.)
+     Sir Walter Raleigh (ob. 1618), was of opinion that the earth
+     would not only be full but overflowing with human beings
+     were it not that hunger, pestilence, crime, war, abstinence
+     welcome sterility, etc. did away with the surplus
+     population. (History of the World, I, ch. 8, 4. Discourse of
+     war: Works, VII, 257 ff.) According to _Child_, Discourse of
+     Trade, 371 ff., 149, the population is always in proportion
+     to the amount of employment.
+
+     If England could employ only 100 men while 150 were reared,
+     50 would have to emigrate or perish; and so, too,
+     conversely, occasional vacancies would soon be filled.
+     Similarly _Davenaut_, Works II, 233, 185; who, however, in
+     the practical application of this law of nature, adopts the
+     error of his contemporary, G. King, the statistician,
+     according to whom the population of England would increase
+     to 11,000,000 (II, 176) only after 600 years. _Benjamin
+     Franklin's_ Observations Concerning the Increase of Mankind,
+     Peopling of new Countries, etc., 1751, are very good.
+     Franklin here shows that the same tables of mortality do not
+     apply to town and country, nor to old nations and new ones.
+     The nation increases more rapidly in proportion as it is
+     easy to contract marriage. Hence the increase is smallest in
+     luxurious cities and thickly populated countries. Other
+     circumstances, being equal, hunting nations require the
+     largest quantity of land for the purpose of subsistence, and
+     industrial nations least. In Europe, there was a marriage in
+     every 100 of the population per annum; in America, on every
+     50; 4 children to a marriage in the former, and 8 in the
+     latter.
+
+     Population diminishes as a consequence of subjugation, bad
+     government, the introduction of slavery, loss of territory,
+     loss of trade and food. He who promotes the opposite
+     advantages may well be called the "father of his country."
+     Further, _D. Hume_, Of the Populousness of the Ancient
+     Nations: Discourses No. 10. _Per contra, Wallace_, On the
+     Numbers of Mankind in Ancient and Modern Times, in which the
+     superior populousness of antiquity is maintained, 1753.
+     _Wallace_ relied chiefly on the more equable distribution of
+     land, and the smaller luxury of the ancient nations.
+     _Herbert_, Essai sur le Police des Grains (1755), 319 ff.
+     Les Interets de la France mal entendus, par un Citoyen
+     (Amsterd., 1757), I, 197.
+
+     _Steuart_ threw light especially on the connection between
+     mortality and the number of marriages (Principles, I, 13);
+     and he claims, with the utmost confidence, that only the
+     want of the means of subsistence, using the expression in
+     its broadest sense (I, 15), can put a limit to the increase
+     of population (I, 14). He calls wrongful procreation
+     (_falsche Zeugung_) the chief cause of pauperism (II, 1),
+     and his views on public charity have a strong Malthusian
+     complexion (I, 14). Compare further _A. Young_, Political
+     Arithmetics (1774), I, ch. 7. _Townsend_, Dissertation on
+     the Poor Laws (1786), makes a happy use of the example of
+     the Island of Juan Fernandez, in which a colony of goats was
+     developed, first alone, and afterwards in a struggle with a
+     colony of dogs, to illustrate the laws of the development of
+     population as limited by the supply of food. Compare the
+     same author's Journey through Spain, II, 8 seq.; 358 ff.,
+     III, 107. _G. M. Ortes_, Riflessioni sulla Popolazione,
+     delle Nazione per rapporto all'Economia nazionale, 1790,
+     ascribes geometrical progression to the increase of
+     population (cap. I) precisely as in the case of other
+     animals; only, in the case of the latter, a limit is put to
+     their increase by _forza_, and in the case of man, by
+     _ragione_. When the population of a country has attained its
+     proper development, celibacy is as necessary in order to
+     keep it so as marriage. Otherwise the door would be opened
+     to extreme pauperism, to the debauchery of the "venus vaga,"
+     to eunuchism and polygamy (4). Strangely enough, _Ortes_
+     asserts that no people are richer per capita than any other.
+     The distribution of wealth among the apparently richer,
+     operates to make individuals heap wealth together in greater
+     quantities (8).
+
+     _Malthus_ himself wrote his classical work under the
+     influence of a very intelligible reaction (1st ed., 1798; 2d
+     ed., 1803). For a whole generation, the European public had
+     had no other view broached but that the tree of human kind
+     might keep on growing even until it reached the heavens, if
+     care were only taken to manure the ground, to water the
+     roots and prune the branches according to the latest
+     world-improving recipes. _Malthus_, in opposition thereto,
+     called attention to the limits placed by nature to the
+     number of mankind. He demonstrated that it was not merely
+     arbitrary laws which opposed the Utopian happiness of all,
+     but in part the niggardliness of nature; and in greater part
+     the passions and sins of men themselves. If he sometimes
+     described the limits as narrower than they really are, and
+     if an occasional coarse expression escaped him, we need not
+     wonder. His polemic was well founded, and he was at the time
+     still a young man (born 1766, ob. 1834). He modified much in
+     the later editions of his work. For instance, he stopped the
+     unsavory sentence in which he says that a man born into the
+     world already occupied, whose family cannot support him, and
+     whose labor society does not need, has not the smallest
+     right to demand the smallest particle of food, and is really
+     superfluous in the world; that there is no place for him at
+     the great banquet of nature; that nature bids him go hence
+     and does not hesitate herself to execute the command. _P.
+     Leroux_ in a small pamphlet in answer to _Malthus_, quotes
+     this sentence at least forty times. Moreover, _Moeser_, who
+     certainly is not considered a misanthrope, was not only
+     acquainted with the Malthusian law, but develops it in
+     words, and with consequences which strongly recall the very
+     words which raised such a storm against _Malthus_. Compare
+     Patr. Phant. I, 42; II, 1; IV, 15 (against vaccination); V,
+     26.
+
+     The opinions of political economists in our own day are, as
+     might be expected, divided on some of Malthus' expressions
+     and on his practical counsels. He has indeed but few such
+     one-sided followers as _Th. Chalmers_, On Political Economy
+     in Connexion with the moral State and moral Prospects of
+     Society, 1832. Malthus' fundamental views, however, are
+     truly scientific. (Ktema es aei!) Compare _Baudrillart_,
+     Manuel, 424 seq., and _A Walker_, Science of Wealth, who
+     strangely enough (452) opposes Malthus, and yet is (458)
+     virtually of the same opinion. Even the better class of
+     socialists base themselves on the same view, without,
+     however, thanking Malthus for it. Thus for instance, _K.
+     Marlo_, System der Weltoekonomie (1848, 52), passim. For an
+     excellent history of the theory of population, see _R.
+     Mohl_, Gesch. und Literatur der Staatswissenschaften, III,
+     409 ff. (1858).]
+
+
+SECTION CCXLIII.
+
+OPPONENTS OF MALTHUS.
+
+Of Malthus' opponents, John Stuart Mill has said, that a confused notion
+of the causes which, at most times and places, keep the actual increase
+of mankind so far behind their capacity for increase, has every now and
+then given birth to some ephemeral theory, speedily forgotten; as if the
+law of the increase of population were a different one under different
+circumstances, and as if the fecundity of the human species, by direct
+divine decree, was in keeping with the wants of society for the time
+being.[243-1]
+
+The majority of such theories are based, on the proof that Malthus'
+description of one stage of civilization is not true of another,
+although the great discoverer, who, with his admirable many-sidedness,
+had investigated the law of population in and throughout all the stages
+of civilization, had, as a rule, himself given due weight to all of
+this. The objection of unwarranted generalization applies to Malthus
+much less than to the majority of his opponents. Since, for instance, in
+young colonies, even the natural forces, which are in themselves limited
+or exhaustible, afford a wide field of operation for a long time; many
+American writers have supposed that labor alone was the source of
+wealth, and that, to say the least, wealth should increase in the same
+ratio as mankind; and even in a still greater ratio, since the division
+of labor grows easier as population increases in density.[243-2] But
+here it is forgotten that in every instance of economic production,
+there are many factors engaged, each one of which can take the place of
+another only up to a certain point. There are others, especially Grahame
+and Carey,[243-3] who allude to the possibility of emigration, which is
+still so far from being exhausted. But Malthus had nothing to say of the
+impossibility of emigration. He spoke only of the great difficulties in
+its way. (III. ch. 4.) There are many writers who would wish simply to
+ship emigrants off, like a great many doctors who send their patients
+away to die! (Sec. 259 ff.) When Sadler says that human prolificacy,
+circumstances remaining the same, is inversely as the density of
+population, he uses, to say the least, a very inaccurate mode of
+expression.[243-4] The grain of truth hidden in this assertion does
+certainly not come from Gray's theory, that in the higher stages of
+civilization, the better living usual is a hinderance to the increase of
+population, and that the prevailing influence of large cities increases
+mortality;[243-5] but from influences, or, to speak more correctly, from
+free human considerations, on which no one has thrown so much light as
+Malthus. And indeed, where is the man who has better understood or more
+warmly recommended the "aristocratic" impulse which should, in well
+ordered civil society, hold the sexual instinct in equilibrium?[243-6]
+Malthus himself pleasantly derides his opponents, who, to explain how
+the same rifle, charged with the same powder and provided with the same
+ball, produces an effect varying with the nature of the object at which
+it is fired, prefer, instead of calculating the force of resistance of
+the latter, to take refuge in a mysterious faculty by virtue of which
+the powder has a different explosive force, according to the greater or
+less resistance the ball meets when it strikes.[243-7] The peculiarity
+of Godwin's polemics may be inferred from the fact that he considered it
+very doubtful whether the population of England had increased during the
+four preceding generations; and that he traces the increase of the
+population of the United States to the influence of emigration almost
+exclusively, and allows the desertion of whole English regiments in 1812
+ff. to play a part in accounting for that increase.[243-8]
+
+Malthus has been accused of rejoicing over the evils which are wont to
+decimate surplus population; but the same charge might be brought
+against those physicians who trace the diseases back to the causes that
+produce them. He has also been branded as the enemy of the lower
+classes, spite of the fact that he is the very first who took a
+scientific interest in their prosperity.[243-9] As John Stuart Mill has
+said, the idea that all human progress must at last end in misery was so
+far from Malthus' mind, that it can be thoroughly combated only by
+carrying Malthus' principles into practice.[243-10]
+
+     [Footnote 243-1: _J. S. Mill_, Principles I, ch. 10.]
+
+     [Footnote 243-2: _Everett_, New ideas on population, with
+     remarks on the theories of Malthus and Goodwin, 1823.
+     Similarly _Carey_, Principles of Social Science, I, 88 ff.,
+     who, with a "natural philosophical" generalization, shows
+     that the more the matter existing on the earth takes the
+     form of men, the greater becomes the power of the latter to
+     give direction to natural forces with an ever accelerated
+     movement. So also _Fontenay_, in the Journal des
+     Economistes, Oct., 1850, says: _un nombre de travailleurs
+     double produit plus du double et ne consomme pas le double
+     de ce que produisaient et consommaient les travailleurs de
+     l'epoque precedente_. Even _Bastiat_ inclines to the same
+     over-estimation of one factor of production. He promises in
+     the introduction to his Harmonies economiques to prove the
+     proposition: _toutes choses egales d'ailleurs, la densite
+     croissante de population equivaut a une facilite croissante
+     de production_. (Absolutely it is true, but whether
+     relatively, quaere.)]
+
+     [Footnote 243-3: _Grahame_, Inquiry into the Principle of
+     Population, 1816; _Carey_, Rate of Wages, 236 ff.]
+
+     [Footnote 243-4: Varies inversely as their numbers: _M. Th.
+     Sadler_, The Law of Population, a treatise in Disproof of
+     the Superfecundity of human Beings, and developing the real
+     Principles of their Increase, III, 1830. There were, for
+     instance--
+
+     ===================================================
+                       | _Inhabitants_ |   _Number of_
+                       | _per English_ | _children to a_
+                       |  _sq. mile_   |   _marriage_
+     ------------------+---------------+----------------
+     The Cape          |       1       |      5.48
+     The United States |       4       |      5.22
+     Russia in Europe  |      23       |      4.94
+     Denmark           |      73       |      4.98
+     Prussia           |     100       |      4.70
+     France            |     150       |      4.22
+     England           |     160       |      3.66
+     ===================================================
+
+     Most of these figures are very uncertain; and even if they
+     were true, they would afford a very bad proof of his
+     assertion. Besides, _Sadler_ was one of those extreme tories
+     who resorted almost to Jacobin measures in opposition to the
+     reforms advocated by Huskisson, Peel and Wellington. Like
+     Sadler, _A. Guillard_, Elements de Statistique humaine ou
+     Demographie comparee, 1855. But, for instance, in Saxony,
+     population has for a long time increased most rapidly, in
+     those places where it is already densest. Compare _Engel,_
+     loc. cit. The five German kingdoms and Mecklenburg-Strelitz
+     hold the same relative rank, on a ten-year average, in
+     relation to the number of births that they do to density of
+     population, (_v. Viehbahn_, Statistik des Z. V., II, 321
+     seq.)]
+
+     [Footnote 243-5: _Gray_, The Happiness of States, or an
+     Inquiry concerning Population, 1875. _Weyland_, Principles
+     of Population and Production, 1816, had already ascribed to
+     industry in itself a tendency to make the increase of
+     Population less rapid!]
+
+     [Footnote 243-6: Compare _Rossi_, Cours d'Economie
+     politique, I, 303 ff.]
+
+     [Footnote 243-7: _Malthus_, Principle of Population, V, ch.
+     3. Thus _J. B. Say_ asks those population-mystics: if in
+     thickly populated countries the power of procreation
+     diminishes of itself, how comes it that even here the
+     extraordinary voids made by pestilence, etc. are so rapidly
+     filled up?]
+
+     [Footnote 243-8: _Godwin_, Inquiry concerning the Power of
+     Increase in the Numbers of Mankind, III, 1821; III, ch. IV.
+     Compare the same socialistic writer's essay: Inquiry
+     concerning public Justice (II, 1793), which in part provoked
+     Malthus' book. _David Booth_ (in Godwin's first book) had
+     the misfortune to ridicule Malthus by comparing his law with
+     the law of gravitation, which he said did not freely operate
+     in nature and was undemonstrable in space void of air! From
+     a better point of view, Bastiat says of Malthus' traducers,
+     that they might as well blame Newton when they were injured
+     by a fall.]
+
+     [Footnote 243-9: Principle of Population, III, ch. 13. His
+     moral severity in other respects is apparent especially in
+     IV, ch. 13, towards the end.]
+
+     [Footnote 243-10: Every good family takes care of their
+     children even before their birth. How far from practical is
+     the view that the means of subsistence come as a matter of
+     course, provided only that men are here before them!]
+
+
+
+
+CHAPTER II.
+
+HISTORY OF POPULATION.
+
+
+
+
+SECTION CCXLIV.
+
+HISTORY OF POPULATION.--UNCIVILIZED TIMES.
+
+In the case of those wild tribes which can only use the forces of nature
+by way of occupation, the small extent of the field of food is filled up
+by even a very sparse population. And the principal means by which
+population is there limited are the following: the overburthening and
+ill treatment of the women,[244-1] by which the simultaneous rearing of
+several small children is rendered impossible;[244-2] the inordinately
+long time that children are kept at the breast;[244-3] the wide-spread
+practice of abortion;[244-4] numerous cases of murder, especially of the
+old and weak;[244-5] everlasting war carried on by hunting nations to
+extend their hunting territory, found in conjunction with cannibalism in
+many tribes.[244-6] Besides, nations of hunters are frequently decimated
+by famine and pestilence, the latter generally a consequence of
+never-ending alternation between gluttony and famine.[244-7]
+
+Most negro nations live in such a state of legal insecurity that it is
+impossible for a higher civilization with its attendant increase of the
+means of subsistence to take root among them. At the same time, their
+sexual impulses are very strong.[244-8] Here the slave-trade constituted
+the chief preventive of over-population. If this traffic were suppressed
+simply and no care taken through the instrumentality of commerce and of
+missions to improve the moral and economical condition of the negroes,
+the only probable but questionable gain would be that the prisoners made
+in the numberless wars generated by famine would be murdered instead of
+being sold.
+
+Nomadic races, with their universal chivalry, are wont to treat their
+women well enough to enable them bear children without any great
+hardship.[244-9] But the mere use of natural pasturage can never be
+carried to great intensity. The transition to agriculture with its
+greater yield of food but with the diminished freedom by which it is
+accompanied is a thing to which these warlike men are so averse that it
+directs the surplus population by the way of emigration into neighboring
+civilized countries, where they either obtain victory, booty and
+supremacy, or are rapidly subjugated. Such migrations are a standing
+chapter in the history of all Asiatic kingdoms; they for a long time
+disturb declining civilized states, finally conquering them, and begin
+the same cycle in the new kingdom.[244-10] Where nomadic races see
+themselves cut off from such migrations their marriages are wont to be
+unfruitful.[244-11]
+
+     [Footnote 244-1: In New Holland they are beaten by their
+     husbands even on the day of their confinement. Their heads
+     are sometimes covered with countless scars. _Collins_ says
+     that for mere pity one might wish a young woman there death
+     rather than marriage. (Account of N. S. Wales, 560 ff.)
+     South American Indian women actually kill their daughters,
+     with a view of improving the condition of women. (_Azara_,
+     Reisen in S. Amerika, II, 63.) How the women among the
+     aboriginal inhabitants of North America were oppressed is
+     best illustrated by the absence of ornaments among the
+     women, while the men were very gaudily decked, and carried
+     small hand-mirrors with them. (_Prinz Neuwied_, N. A. Reise,
+     II, 108 seq.) The early decay of female beauty among all
+     barbarous nations is related to the ill-treatment they
+     receive.]
+
+     [Footnote 244-2: The custom of killing one of twins
+     immediately after birth or of burying a child at the breast
+     with its mother, prevails extensively among savage nations.
+     On New Holland, see _Collins_, 362; on North America,
+     Lettres edifiantes, IX, 140; on the Hottentots, _Kolb_, I,
+     144.]
+
+     [Footnote 244-3: In many Indian tribes, children are kept at
+     the breast until their fifth year. (_Klemm_,
+     Kulturgeschichte I, 236; II, 85.) Among the Greenlanders,
+     until the third or fourth year (_Klemm_, I, 208); among the
+     Laplanders and Tonguses, likewise (_Klemm_, III, 57); among
+     the Mongols and Kalmucks, longer yet. (_Klemm_, III, 171.)]
+
+     [Footnote 244-4: The New Hollanders have a special word to
+     express the killing of the foetus by pressure.
+     (_Collins._) Among certain of the Brazilian tribes, this is
+     performed by every woman until her 30th year; and in many
+     more the custom prevails for a woman when she becomes
+     pregnant to fast, or to be frequently bled. (_Spix und
+     Martius_, Reise, I, 261.) Compare _Azara._, II, 79.]
+
+     [Footnote 244-5: On the Bushmen, see _Barrow_, Journey in
+     Africa, 379 ff.; on the Hottentots, among whom even the
+     wealthy aged are killed by exposure, see _Kolb_, Caput bonae
+     Spei, 1719, I, 321; on the Scandinavian, old Germans,
+     Wendes, Prussians, _Grimm_, D. Rechtsalterthuemer, 486 ff.;
+     on the most ancient Romans, _Cicero_, pro Rosc. Amer, 35,
+     and Festus v. Depontani, Sexagenarios; on Ceos, _Strabo_, X,
+     486; on the ancient Indians, _Herodot._, III, 38, 99; on the
+     Massagetes, _Herodot._, I, 216; on the Caspians, _Strabo_,
+     XI, 517, 520. Touching picture of an old man abandoned in
+     the desert, unable to follow his tribe compelled to emigrate
+     for want of food: _Catlin_, N. American Indians, I, 216 ff.
+     We here see how the killing of helpless old people may be
+     considered a blessing among many nations. Death is also
+     sometimes desired by reason of superstition. For instance,
+     the Figians think that after death they will continue to
+     live of the same age as that at which they died.
+     (_Williams_, Figi and the Figians, I, 183.) The Germans who
+     died of disease did not get to Walhalla! (_W. Wackernagel_,
+     Kl. Schriften, I, 16.)]
+
+     [Footnote 244-6: On the frightful cannibalism practiced on
+     the upper Nile, see _Schweinfurth_ in _Petermann's_ geogr.
+     Mettheilungen, IV, 138, seq. Australian women seldom outlive
+     their 30th year. _Lubbock_, Prehistoric Times, 449. Many are
+     eaten by the men as soon as they begin to get old.
+     (Transactions of the Ethnolog. Society, New Series, III,
+     248.) A chief of Figi Islands who died recently had eaten
+     872 men in his lifetime. _Lawry_, Visit to the Friendly and
+     Fejee Islands, 1850. Even the more highly civilized Mexicans
+     had preserved this abomination. According to _Gomara_,
+     Cronica de la N. Espana, 229, there were here from 20,000 to
+     25,000 human sacrifices a year; according to _Torquemada_,
+     Indiana, VII, 21, even 20,000 children a year. _B. Diaz_, on
+     the other hand, puts the number down at 2,500 only. Compare
+     _Klemm_, Kulturgeschichte, V, 103, 207, 216.]
+
+     [Footnote 244-7: The usual coldness, so much spoken of, of
+     the Indians, seems to have an economic rather than a
+     physiological cause. At least, it has also been observed
+     among the Hottentots. (_Levillant_, Voyage, I, 12 seq.), and
+     under favorable economic conditions the Indians have
+     sometimes increased very rapidly. (Lettres edifiantes, VIII,
+     243.) Whether the practice in vogue among the Botocuds to
+     carry the organ of generation continually in a rather narrow
+     envelope, or that among the Patachos of lacing the foreskin
+     with the tendrils of a plant, is not a "preventive check,"
+     quaere. Compare _Prinz Neuwied_, Bras. Reise, II, 10; I,
+     226.]
+
+     [Footnote 244-8: On the gold coast, people become fathers in
+     their 12th year even, and mothers at 10. (_Ritter_,
+     Erdkunde, I, 313.) In the whole of the Soudan the climate is
+     so exciting that the intercourse of the sexes is said to be
+     a "physical necessity," and an unmarried man of eighteen is
+     universally despised. But, indeed, the individual is little
+     valued in Africa, on account of the great prolificacy of the
+     African race. (_Ritter_, I, 385.)]
+
+     [Footnote 244-9: _Herodot._, IV, 26.]
+
+     [Footnote 244-10: Compare _Machiavelli_, at the beginning of
+     his Istoria Fiorentina. The migration of the Germani is
+     accounted for simply by the family and marriage relations of
+     the Germans, which necessarily favored prolificacy: _Severa
+     matrimonia ... singulis uxoribus contenti sunt ... septae
+     pudicitia ... paucissima adulteria ... publicatae pudicitiae
+     nulla venia ... nemo vitia ridet ... numerum liberorum
+     finire, flagitium habetur ... sua quemque mater uberibus
+     alit ... sera juverum Venus eoque inexhausta pubertas ...
+     quanto plus propinquorum, tanto gratiosior senectus._
+     _Tacit._, Germ., 14. Entirely similar in character were the
+     migrations of the Normans, which lasted just as long as the
+     resistance to the countries they would invade, seemed to
+     them a matter of less difficulty than the transition to a
+     higher civilization in their own country. _Malthus_ has
+     corrected the extravagant notions concerning the former
+     density of population in the North--the _vagina nationum_,
+     according to Jornandes! (_Malthus_, I, ch. 6.) Compare,
+     however, _Friedrich M._, in Antimachiavel, ch. 21, and the
+     later view: Ouevres, IX, 196.]
+
+     [Footnote 244-11: Among the Bedouins even three children are
+     considered a large family; and they even complain of that
+     number. (_Burckhardt._)]
+
+
+SECTION CCXLV.
+
+INFLUENCE OF A COMMUNITY OF WOMEN AND POLYGAMY.
+
+Most barbarous nations live very unchaste;[245-1] so that, as Tacitus
+observes, the ancient Germans were a brilliant exception to the
+rule.[245-2] Vices of unchastity always limit the otherwise natural
+increase of population. Premature enjoyment exhausts the sources of
+fruitfulness in the case of many.[245-3] The life of the child conceived
+in sin is generally little valued by its parents. Hence the numerous
+instances of exposure and infanticide.[245-4] We have already seen how
+closely, psychologically speaking, a community of goods is allied to a
+community of women. (Sec. 85.) And, indeed, in the lower stages of
+civilization, we find as close an approximation to the latter as to the
+former; and it is difficult to believe that, among men living in a state
+of nudity, the marriage of one man to one woman could properly
+exist.[245-5] But it is as little possible to reconcile a community of
+women with density of population as great national wealth with a
+community of goods. Any one acquainted with the condition and capacities
+of new born children knows that the weak little flame easily goes out
+when not nursed by family care.[245-6]
+
+Polygamy also is a hinderance to the increase of population. Abstract
+physiology must, indeed, admit that a man may, even without any danger
+to his health, generate more children than a woman can bear.[245-7] But,
+in reality, the simultaneous enjoyment of several women leads to excess
+and early exhaustion;[245-8] and if one of them is married after the
+other, the older who might still bear children for a long time are
+neglected by the man.[245-9] Monogamy is, doubtless, the Creator's law,
+since only in monogamous countries can we expect to find the intimate
+union of family life, the beauties of social intercourse and free
+citizenship.[245-10] "God made them male and female."[245-11] And yet in
+all countries with which we are statistically acquainted, there is a
+somewhat larger number of boys than of girls born;[245-12] but this
+excess is removed by the time that puberty sets in, by reason of the
+greater mortality of boys. Only extraordinary conditions which thin the
+ranks of males, such as war and emigration, leave a preponderance of the
+number of women.[245-13] Hence, among barbarous nations, who live in
+everlasting strife (Secs. 67, 70), polygamy is very generally established.
+Men are seldom deterred therefrom by a solicitude concerning what they
+shall eat, since the women are treated as slaves, and rather support the
+men than are supported by them.[245-14] But in the civilized countries
+of the east, the polygamy of the great may actually lead to the
+compulsory singleness of many of the lower classes, as a species of
+compensation.[245-15] The monstrous institution of eunuchism, which has
+existed time out of mind in the east, is a consequence of this condition
+of things as well as of the natural jealousy of the harem.[245-16]
+
+     [Footnote 245-1: Impurity of the Kamtschatdales, bordering
+     on a community of women. (_Klemm_, Kulturgeschichte, I, 287
+     ff., 350 ff.; II, 206, 297 seq.) On Lapland, see _Klemm_,
+     III, 55. In their purely nomadic period, even the Getes,
+     afterwards remarkable for their noble character (_Horat._,
+     Carm., III, 24), have had very loose relations of the sexes.
+     (_Menander_, in _Strabo_, VII, 297.)]
+
+     [Footnote 245-2: Very unlike the Celts: _Strabo_, IV, 199.
+     But the Germans even at the time when the compensation
+     system alone prevailed, imposed a disgraceful death on the
+     _corpore infames. (Tacit._, Germ., 12.) In keeping with this
+     purity of the Germans was the deep gravity and the genuine
+     heartiness of their ancient nuptial ceremonies. (_Tacit._,
+     Germ., 18.) Similarly, in England throughout the middle
+     ages. (_Lappenberg_, Engl., Gesch. I, 596.) Great moral
+     severity of the Scandinavians (_Weinhold_, Altnord. Leben,
+     255), so that the gratification of the sexual appetite
+     outside of marriage was punishable with death. (_Adam
+     Brem._, IV, 6, 21.)]
+
+     [Footnote 245-3: Abuse of young girls in New Holland
+     (_Collins_, 563); among the American aborigines
+     (_Charlevoix_, Histoire de la N. France, III, 304; Lettres
+     edifiantes, VII, 20 ff.); among the negroes (_Buffon_,
+     Histoire naturelle de l'Homme, VI, 255).]
+
+     [Footnote 245-4: Infanticide in Kamtschatka, _Klemm_, I,
+     349.]
+
+     [Footnote 245-5: In most mythical histories, the
+     institutions of property and of marriage are ascribed to the
+     same name (Menes Cecrops, the Athenian Thesmophories.) Among
+     the Indian tribes of Terra Firma, the exchange of wives and
+     the _jus primae noctis_ of the chiefs are very common.
+     (_Depons_ Voyage, I, 304, ff.) In North America, the Indians
+     are very eager to rent out their wives for a glass of
+     brandy. (_Prinz Neuwied_, N. A. Reise, I, 572 seq.) Compare
+     _Lewis_ and _Clarke_, Travels to the Source of the Missouri
+     and the Pacific Ocean, 1804-1806. Almost always on entering
+     a higher age-class it is one of the principal conditions to
+     leave one's wife for a time to the more distinguished. On
+     feast days, prayer days, etc., the women give themselves
+     publicly up to vice; and this can be commuted only by a
+     gift. (_Prinz Neuwied_, I, 129 ff., 272.) Community of women
+     in California. (_Bagert_, Nachrichten von der Halbinsel C.
+     1772.) In many of the South Sea Islands, the youth of the
+     higher classes were wont to form themselves into so-called
+     _arreyo-societies_, the object of which was the most
+     unlimited intercourse of the sexes (a pair being united
+     generally only from 2 to 3 days), and the murder of the new
+     born children. The girls principally were murdered, and
+     hence the missionaries at Otaheite (New Cytheria) found only
+     1/5 as many women as men. _Chaque femme semble etre la femme
+     de tous les hommes chaque homme le mari de toutes les
+     femmes._ (_Marchand_, I, 122.) The many governing queens
+     here are characteristic. Compare _Forster_, Reise II, 100,
+     128; _Kotzebue_, Reise, III, 119; European Magazine, June,
+     1806; _Reybaud_, Voyages, et marines, 128, and the
+     quotations in _Klemm_, Kulturgesch., IV, 307.
+
+     Similar customs are found among the nomads. The Bedouins
+     dissolve their marriages so easily that a man forty-five
+     years old had 50 wives; family secrets are a thing unknown
+     there. (_Burckhardt_, Notes on the Bedouins, 64; Travels
+     app. II, 448; _Ritter_, Erdkunde, XII, 205, 211, 983.) On
+     the Libyans, see _Herodot._, IV, 168, 172, 186, 180: on the
+     Massagetes, _Herodot._, I, 216; on the Taprobanes, _Diod._,
+     II, 58; on the Troglodytes, _Pomp, Mella._, I, 8,
+     _Agatharch_, 30. Community of women among the ancient
+     Britons, _Caesar_, B. G. V, 14 seq.; also among the naked,
+     tatooed Caledonians, _Dio Cass._, LXXVI, 12; probably also
+     among the cannibal Irish. _Strabo_, IV, 201. Great laxity of
+     the marriage tie in Moelmud's laws of Wales, (_Palgrave_,
+     Rise and Progress of the English Commonwealth, I, 458 ff.)
+     in which country a species of tenure in common of land and
+     servants was customary. (_Wachsmuth_, Europ. Sittengesch.
+     II, 225.) In Russia, in very ancient times, only the Polanes
+     had real marriages. (_Nestor v. Schloezer_, I, 125 seq.)
+     Something very analogous even among the Spartans: same
+     education for boys and girls, admittance for men to the
+     female gymnasiums; marriage in the form of an abduction, and
+     afterwards fornication. (_Xenoph._, De rep. Laced. I, 6:
+     _Plutarch_, Lycurg. 15.) Adultery tolerated by law in
+     countless cases. (_Xenoph._, II, 7 ff.; _St. John_, The
+     Hellenes, I, 394.) History of the origin of the so-called
+     Partheniae; _Strabo_, VI, 279. (_Supra_, Sec. 83.) The custom
+     which prevails among so many barbarous nations to designate
+     one's progeny by the name of the mother, _Sanchoniathan_
+     traces to the licentiousness of women. (p. 16, Orell.)
+     Traces of this also in Egypt: _Schmidt_, Papyrusurkunden,
+     321 ff. Avunculus means little grand-father. Many proofs
+     which _Peschel_, Voelkerkunde, 243 seq. explains otherwise,
+     but which seem to me to point to an original community of
+     wives.]
+
+     [Footnote 245-6: The relation existing between the so-called
+     organization of labor (Sec. 82) and a community of wealth is
+     repeated in the relation of a community of wives to the
+     situation in Dahomey, where every man has to purchase his
+     wife from the king. _Gumprecht_, Afrika, 196. Similarly
+     among the Incas: _Prescott_, Hist. of Peru, I, 159. Even the
+     sale of wives is a step in advance as compared with a
+     community of wives (Sec. 67 seq).]
+
+     [Footnote 245-7: It is said that a German prince of the 18th
+     century had 352 natural children. (_Dohm_, Denkwuerdigkeiten,
+     IV, 67.) Feth Ali, shah of Persia, had made 49 of his own
+     sons provincial governors, and he had besides 140 daughters.
+     (_Ker Porter_, II, 508.)]
+
+     [Footnote 245-8: Turkish married men are frequently impotent
+     at the age of 30. (_Volney_, Voyage dans la Turquie, II,
+     445.) Similarly in Arabia. (_Niebuhr,_ Beschreibung, 74.)
+     The use of aphrodisiac means very wide-spread in the East.
+     According to _Niebuhr_ (76), monogamous marriages produced
+     absolutely more children than polygamous. Compare _G.
+     Botero_, Ragion di Stato, VIII, 93 ff.; _Montesquieu_,
+     Lettres Persanes, N., 114; _Suessmilch_, Goettl. Ordnung, I,
+     Kap., 11. On the other hand, _Th. L. Lau_, Aufrichtiger
+     Vorschlag von ... Einrichtung der Intraden (1719), 6,
+     recommends the allowing of polygamy as a means of increasing
+     population.]
+
+     [Footnote 245-9: Rehoboam had 18 wives and 60 concubines,
+     and only 88 children (II Chron., 11, 21); that is not much
+     more than one child by each.]
+
+     [Footnote 245-10: The high esteem for woman requisite to
+     true love seems to be almost irreconcilable with polygamy.
+     The wife stands to the husband in the relation of a
+     mistress; and, in reference to the latter, fidelity has
+     scarcely any meaning. The husband also has no confidence in
+     his wife; and hence the seclusion of the harem. But the
+     domestic tyrant is easily made the slave of a higher power.
+     And what becomes of fraternal love with the half-brother
+     feeling of children of different mothers?]
+
+     [Footnote 245-11: Genesis 1, 27; 5, 12; 7, 13.]
+
+     [Footnote 245-12: Compare _J. Graunt_, Natural and Political
+     Observations on the Bills of Mortality (1662). During the
+     course of the 19th century, according to averages made from
+     long series of years, there were, for every 1,000 girls born
+     alive in Lombardy, 1,070 boys; in Bohemia, 1,062; in France,
+     1,058; in Holland, 1,057; in Saxony, 1,056; in Belgium,
+     1,052; in England, 1,050; in Prussia, 1,048. On the whole,
+     the ratio in 70,000,000 children born alive was as 100 :
+     105.83. The excess of males over females in bastards is
+     smaller than in the case of legitimate children, in towns
+     than in the country. Everything considered, the number of
+     boys born seems to be greater than the number of girls in
+     proportion as the father is in advance of his wife in years.
+     Compare _Sadler_, Law of Population, II, 343. _Hofacker_,
+     Ueber die Eigenschaften die sich vererben, 51 ff. _Wappaeus_,
+     Allg. Bevoelkerungstatistik, II, 151, 160 ff., 306 ff. _Per
+     contra_, we have _Legoyt's_ supposition that the number of
+     boys born is greater in proportion as the parents are more
+     nearly of an age: Statistique comparee, 500.]
+
+     [Footnote 245-13: According to the censuses between 1856 and
+     1861, there are for every 1,000 men in Belgium 994 women; in
+     Austria, 1,004; in Prussia, 1,004; in France, 1,001; in
+     England, 1,039; in Holland, 1,038. The majority of the
+     latter seems to have diminished everywhere the greater the
+     distance in time from the most recent great wars; and to
+     belong only to those age-classes which were coeval with
+     those wars. (Preuss. amtliche Tabellen fuer 1849, I, 292.) In
+     the United States there were, 1800-1844, for every 1,000
+     women, 1,033-1,050 men; mainly accounted for by large
+     immigration. Between 1819 and 1855 the immigration was
+     2,713,391 men and 1,720,305 women. (_W. Bromwell_, History
+     of Immigration to the United States, New York, 1856.) In
+     Switzerland, among the population belonging to the cantons,
+     there were for every 1,000 men, 1,038 women; among the
+     foreign Swiss, 970; among foreigners, 650. (_Bernouilli_,
+     Populationistik, 31.) Compare _Horn_, loc. cit., I, 105 ff.,
+     who supposes a natural principle of equilibrium: the greater
+     the preponderance of the number of women, the more does it
+     happen that only the younger women are married; the greater
+     consequently the difference between the ages of the married
+     couple, and the more probable the birth of boys, and _vice
+     versa_. (115 ff.)]
+
+     [Footnote 245-14: Compare _Catlin_, N. American Indians, I,
+     118 ff. Even Strabo believed that among the Median
+     mountaineers each man had five wives! (XI, 526.)]
+
+     [Footnote 245-15: Concerning Solomon's 700 wives and 300
+     concubines, see I Kings, 11, 3; according to the Canticle of
+     Canticles, only 60 wives and 80 concubines. According to
+     _Mirkhond_ and _Khondemir_, there was in the place in which
+     the Sassand shah resided, 3,000 women of the harem and
+     12,000 female slaves. Polygamy among the latter class is
+     seldom possible or thought of. Of 2,800 Moslems in Bombay,
+     only 100 lived in polygamy, and only 5 had three wives each.
+     (_Ritter_, Erdkunde, 1088.) I lay no weight here on the
+     assertion so frequently repeated of travelers in the east,
+     that more girls than boys are born there; for the reason
+     that there is there no real statistics, and that the infidel
+     travelers can be permitted few glimpses into the secrecy of
+     family life. _Lady Sheil_ indeed assures us that in Persia
+     itself the opinion prevails that there are a great many more
+     women than men. Glimpses of Life and Manners in Persia,
+     1855. Similar pretense among the Mormons.]
+
+     [Footnote 245-16: We find, even on Egyptian temples,
+     pictures representing the castration of prisoners. _Franck_,
+     in the Memoires sur l'Egypte, IV, 126. On Babylon, see
+     _Hellanicus_, apud. Donat. ad Terent. Eunuch., I, 2, 87.
+     This province, besides Assyria (the ancient seat of sultan
+     glory), delivered 500 castrated boys per annum to the king
+     of Persia. (_Herodot._, III, 92.) Of the califs, Soliman is
+     said to be the first (at the beginning of the 8th century)
+     who had his harem superintended by eunuchs; a very sensual
+     master who frequently changed his wives. (_Reiske Z.
+     Abulfeda_, I, 109 ff.; _Weil_, Gesch. der Kalifen, I, 573.)
+     At an audience which the calif Moktadir gave to a Byzantine
+     ambassador, there appeared 4,000 white and 3,000 black
+     eunuchs. (_Rehm._, Gesch. des Mittelalters, I, 2, 32.) In
+     the harems of the present Persian persons of rank, there are
+     usually from 6 to 8 eunuchs. _Rosenmueller_, Altes und Neues
+     Morgenland, IV, 290. In Upper Egypt, the castration of
+     handsome boys by monks (!) is a regular trade. About 2 per
+     cent. die in consequence of the operation, the others rise
+     in consequence in price from 200-300 to 1,000 piasters.
+     (_Ritter_, Erdkunde, I, 548.) In the Frankish middle age,
+     the merchants of Verdun castrated persons to sell them in
+     Spain. Compare _Liutprand_, Hist., VI, 3, in _Muratori_,
+     Script. Rerum Ital., II, 1, 470.]
+
+
+SECTION CCXLVI.
+
+HISTORY OF POPULATION.--IN HIGHLY CIVILIZED TIMES.
+
+The conditions of population among mature and flourishing nations is
+characterized by this, that the moral and rational preventive tendencies
+counter to over-population decidedly preponderate. Here so much value is
+attached to the life, and to the healthy and comfortable life of human
+beings already in existence that even the majority of the lower classes
+take care to bring no more children into the world than can be properly
+supported, nor to bring them into being in advance of food. Here, too,
+mortality is relatively small, which when population is stationary is
+found in connection with a higher average duration of human life.[246-1]
+While among savage and semi-savage nations, travelers are struck by no
+phenomenon as much as by the total absence of old men,[246-2] in most
+European nations the average duration of life has, during the last
+centuries, seemed to noticeably increase. In France, for instance,
+between 1771 and 1780, on a population of 29,000,000 at most, there were
+as many deaths as on 35,000,000 between 1844 and 1853.[246-3] In Sweden,
+the classic land of statistics relating to population, mortality from
+1749 to 1855 had diminished 0.107 per cent. per annum.[246-4] [246-5]
+
+No reasonable man considers mere living the highest good; but, from an
+average prolongation of life, we may with great probability infer an
+improvement in the means of subsistence, in hygienic measures, etc.,
+even for the lower classes, who everywhere constitute the great majority
+of the population. _Aisance est vitalite!_--at least on the supposition
+that morality remains the same.[246-6] How great may not have been the
+effect, for instance, of the healthier mode of the building of modern
+cities, of the disappearance of the greater number of fortifications
+etc., the more rational character of the healing art, the extension of
+vaccination,[246-7] the hygienic measures adopted by governments,[246-8]
+the better care of the poor and especially the asylums for small
+children! The modern system of agriculture and of the corn trade make
+famines less destructive of life.[246-9] (Sec. 115). The modern
+quarantine-system has protected us entirely against a number of plagues;
+and the worst epidemics of our day cannot be compared with those of
+earlier periods or in less civilized countries. In the second half of
+the 17th century, it was estimated in London that a plague would occur
+once in every 20 years, each of which swept away one-fifth of the entire
+population.[246-10] And in that very city the annual mortality between
+1740 and 1750 varied three-fifths, during the second half of the 18th
+century only one-third, during the 19th century only one-fifth in the
+same decade; a clear proof of the diminished fatality of
+epidemics.[246-11] [246-12]
+
+     [Footnote 246-1: The so-called _Populationistikers_ are wont
+     to distinguish between the average and probable duration of
+     life (_vie moyenne--vie probable_); and understand by the
+     former the number of years which, on an average, have been
+     accorded to one deceased; by the latter, the number of years
+     after the expiration of which one-half of a given number of
+     human beings have disappeared. If _x_ deceased persons have
+     lived an aggregate of _s_ years, their average duration of
+     life = _s_/_x_. In the case of a whole people, indeed, even
+     the many-years' average of the duration of life of those
+     deceased expresses the true average duration of life only
+     when (a rare case) the aggregate population remains
+     stationary. For, when the population is increasing, the
+     average age of the deceased is smaller than the average
+     duration of life, and, when population is decreasing,
+     larger. In the saddest case of all, when there are no births
+     whatever, and the nation is gradually dying out, there would
+     be an increase from year to year of the average age. In all
+     such cases, strictly speaking, only the actual observation
+     and following up of those born, until they die; can afford a
+     safe result. This is _Hermann's_ method, introduced into
+     Bavaria since 1835. Compare the XIII. and XVII. numbers of
+     the official Bavarian statistics with _G. Meyer's_ criticism
+     in _Hildebrand's_ Jahrbuechern, 1867, I. And indeed _Hopf_,
+     Preuss. Statist. Zeitschr., says that a complete table of
+     mortality can be made, according to the best method, only
+     after centuries of observation.
+
+     Compare _Kopf_, in the 3d edition of _Kolb's_ Handbuch der
+     Statistik, and the solid works of _G. F. Knapp_, Ueber die
+     Ermittelung der Sterblichkeit (1868) and Die Sterblichkeit
+     in Sachsen (1869). _Price's_ mode of calculation of which
+     _Deparcieux_ is the real author, which divides the number of
+     the living by the arithmetical mean of the number of births
+     and deaths is not only inaccurate (_Meyer_, loc. cit., 43
+     ff.) but erroneous in principle, since it allows two
+     countries of equal population to be the same, the one of
+     which has 120,000 births and a mortality of 80,000, and the
+     other, on the contrary, 80,000 births and a mortality of
+     120,000. _Engel_ recommends as the measure of real vitality
+     the ratio between the "living years" and the "dead years,"
+     meaning by the former the sum of the years which those still
+     living have lived through, and by the latter the sum of the
+     years lived through by those who have died within a given
+     period. (Preuss. Statist. Zeitschr., 1861, 348 ff.) But the
+     inference which may be drawn from a high or a low average of
+     life is altogether ambiguous. A high average may as well be
+     produced by a great mortality among children as by a
+     favorable mortality among those of mature age; and a low
+     average as well by a relatively small number of births as by
+     a relatively short duration of life. (_Meyer_, loc. cit.,
+     23, 24.)]
+
+     [Footnote 246-2: On the aborigines of America, see Lettres
+     edifiantes, VII, 317 ff. _Cook,_ Third Voyage, III, ch. 2.
+     _La Perouse_, Voyage, ch. 9. _Robertson_, Hist. of America
+     B., IV. _Raynal_, Histoire des Indes L., XV. On the African
+     negroes: _M. Park_, ch. 1. They are said to manifest the
+     symptoms of old age at 40, and very seldom to live to be
+     over 55 or 60 years of age.]
+
+     [Footnote 246-3: _Necker_, De l'Administration des Finances
+     de la France, 1784, I, 205 ff., gives for 1771-80 the
+     average number of births, per annum, 940,935; of deaths,
+     818,391; the population at 24,229,000. _Legoyt_, Statist.
+     Comp., estimates the last, in 1784, at at least 26,748,843,
+     probably even at 28,718,000. During the period, 1844-53,
+     35,000,000 to 36,000,000 Frenchmen had only about as many
+     births (956,317) and deaths (815,723) as a much smaller
+     population before the Revolution--the latter numbers,
+     according to official estimation, omitting the
+     still-born--which _Necker_ also scarcely took into
+     consideration. _C'est la difference entre un peuple de
+     proletaires et une nation, dont les deux tiers jouissent des
+     bienfaits de la propriete. (Moreau de Jonnes)._ In France,
+     there was one death, in 1784, on every 30 living; in 1801,
+     on every 35.8 living; in 1834-5, on every 38 living; in
+     1844, on every 39.9 living; in 1855-57 (average), on every
+     41.1 living; in 1860-65 (average), on every 43.7 living. It
+     is also probable, that the average duration of life in
+     France increased from the fact that, from 1800 to 1807, the
+     number of persons subject to conscription was only 45 per
+     cent. of the whole corresponding number of births; but that
+     from 1822 to 1825 it was 61 per cent. (_Bernoulli_,
+     Populationistik, 452.) On Paris alone, see _Villerme_,
+     Memoire lu a l'Academie des Sciences, 29 Nov., 1824. Compare
+     _supra_, Sec. 10.]
+
+     [Footnote 246-4: _Wappaeus_, Allg. Bevoelkerungsstatistik. In
+     Prussia, in the less cultured provinces (the eastern), the
+     mortality and number of births is greatest; but in the whole
+     country the relative mortality seems to have remained
+     stationary since 1748. (_Engel_, Preuss. Statist. Zeitschr.,
+     1861, 336 seq.) And even the average age of the deceased
+     decreased even between 1820 and 1860 (344 ff.) In Berlin
+     alone, the arithmetical mean of the number of births and
+     deaths shows no improvement, at least (loc. cit. 1862,
+     195).]
+
+     [Footnote 246-5: In Geneva, where there have been almost
+     uninterrupted tables of mortality, giving the age at the
+     time of death, the average duration of life during the 2d
+     half of the 16th century is estimated at 21-1/6 years;
+     during the 17th century, at 25-3/4 years; from 1701 to 1750,
+     at 32-7/12 years; from 1750 to 1800, at 34-1/2 years; from
+     1814 to 1833, at 40-2/3 years. Compare _Mallet_, Recherches
+     historiques et statistiques sur la Population de Geneve,
+     1837, 98 ff., 104 ff., and _Bernouilli_, Schweiz, Archiv.,
+     II, 77; _per contra, d'Ivernois_, sur la Mortalite
+     proportionelle des peuples consideree comme Mesure de leur
+     Aisance et Civilization, 1833, 12 ff. But little can be
+     inferred from this, on account of the large immigration, of
+     adults for the most part. Geneva is said to have had, in the
+     16th century, never much more than 13,000 inhabitants; at
+     the end of the 17th century it had 17,000; in 1789, 26,000;
+     between 1695 and 1795 there was an increase of 6,000 at
+     least from abroad. (_Bernouilli_, Populationistik, 369 seq.)
+     Compare _Wappaeus_ in the Goetting. Gesellsch. der Wissensch.
+     Bd., VIII, 1860, who, however, as well as _Neison_,
+     Contributions to Vital Statistics, VI ff., is too skeptical
+     as regards modern progress in vitality.]
+
+     [Footnote 246-6: Higher civilization, indeed, instead of
+     leading to higher vitality, may lead to immoderate toil and
+     immoderate enjoyment. (_Schaeffle_, in the D.
+     Vierteljahrsschrift, April, 1862, 340.) _Engel_ says that,
+     in general, life is more intense in our day, and hence leads
+     to a more rapid exhaustion of individual life-force.
+     (Preuss. Statist. Ztschr., 1862, 53.) According to English
+     experience of the well-fed classes, those have the greatest
+     duration of life who otherwise live in modest circumstances.
+     Thus, for instance, clergymen thirty years of age have still
+     an average expectation of life of 39.49 years; members of
+     the learned professions, 38.86; country gentlemen, 40.22;
+     members of the aristocracy, 37.31; princes of the blood,
+     only 34.04; sovereigns, only 27.16 (Statist. Journal, 1859,
+     356 ff.); while agricultural laborers, who have sufficient
+     means and intelligence to participate in the so-called
+     friendly societies, have an expectation of life of 40.6
+     years after their thirtieth year. (_Neison_, loc. cit.) On
+     the whole, it seems to be in harmony with the democratic
+     leveling tendencies of our own age, that the better care of
+     children and of the sick has lengthened short lives, and
+     that the unrest of the times has shortened the long lives,
+     although the level of the general average continually rises,
+     notwithstanding. Thus, in Geneva, the proportion of those
+     who outlived their thirtieth year was: in the 16th century,
+     after 1549, 29.87; in the 17th century, 37.29; in the 18th
+     century, 49.39; in the 19th century, until 1833, 58.85 per
+     cent. of the number of births. On the other hand, the
+     expectation of life of those who had attained their 80th
+     year, was in these four centuries respectively 6.22, 5.87,
+     4.40 and 3.84 years. (_Mallet_, l. c., and Statist. Journal,
+     1851, 316 ff.) In keeping with this is, that according to
+     _Guy's_ researches, the average duration of life of the
+     English peerage and baronetage was, in 1500-1550, 71.27
+     years; 1550-1600, 68.25 years; 1600-1650, 63.95 years;
+     1650-1700, 62.40 years; 1700-1745, 64.13 years. (Statist.
+     Journal, 1845, 74.) However, we may most directly infer a
+     favorable condition of things from the diminished mortality
+     of children, for the reason that this, far more directly
+     than the mortality of adults, is conditioned by the quality
+     of food. The younger a child is, the more exclusively is its
+     life-force the product of these two factors: the physical
+     constitution of its parents and the care bestowed upon it.
+     Compare _F. J. Neumann_, Die Gestaltung der mittleren
+     Lebensdauer in Preussen, 1865, 26 ff. In Prussia, in
+     1751-60, only 312 in 1,000 outlived their tenth year; in
+     1861-70, 633 in 1,000. Yet, since 1856, the mortality of
+     children has again begun to increase. (_Knapp_,
+     Mittheilungen des Statist. Bureaus, VIII, p. 8.)]
+
+     [Footnote 246-7: _Duvillard_, Analyse ou Tableau de
+     l'Influence da la petite Verole, 1806, is of opinion that
+     before vaccination only 4 per cent. of those over 30 years
+     of age were spared by the small-pox; that two-thirds of all
+     new-born children were attacked by the disease sooner or
+     later, and that from one-eighth to one-seventh of those
+     attacked died; and of small children even one-third. Hence,
+     in many countries, the average duration of life was
+     increased 3-1/2 years by reason of vaccination. In London,
+     between 1770 and 1779, of 1,000 deaths, 102 were caused by
+     the small-pox; in from 1830 to 1836, only 25 in 1,000.
+     (_Porter_, Progress of the Nation, I, 1, 39.) In Berlin,
+     between 1792 and 1801, 4,999 persons died of the small-pox;
+     between 1812 and 1822, only 555. (_Casper._) That this is
+     really a consequence of vaccination is proved by the facts
+     of the Chemnitz small-pox epidemic of 1870-71, during which,
+     in four of the streets principally visited by it, 9 per
+     cent. were taken ill. Of 4,375 persons who had been
+     vaccinated, 2.12 per cent. were attacked; of 644 who were
+     not vaccinated, 54.38 per cent. Of those attacked, 2.1 per
+     cent. of the former and 11.3 per cent. of the latter died.
+     (Leipzig Tageblatt, 5 Mai, 1871.)]
+
+     [Footnote 246-8: Among the earliest institutions of medical
+     police are the following: the Swedish Collegium medicum
+     under Charles XI; the Prussian, 1724; the Danish, 1740; the
+     quarantine law of Louis XIV., of 1683; the Parisian bureau
+     of nurses, 1715; lying-in establishments since 1728; French
+     institutions for the saving of drowned persons, 1740;
+     English institutions for the saving of persons in cases of
+     apparent death, 1744; bathing largely promoted by government
+     since the eighteenth century; prohibition by Maria Theresa
+     of burial in churches and of locating cemeteries too near
+     dwelling houses, in 1778. Even _Thomasius_, De Jure
+     Principum circa Sepultur., Sec. 8, had advised this; and, in
+     Italy, _Fr. Patricius_, De Inst. Republ. V, 10. On ancient
+     medical police, see _Pyls_ Repertorium fuer oeffentliche und
+     gerichtliche Arzneiwissenschaft, II 167, ff. III, 1 ff.]
+
+     [Footnote 246-9: In France, the number of deaths in the
+     cheap years, 1816 and 1819, amounted to an average of
+     755,877; of the dear years, 1817 and 1818, to an average of
+     750,065. (Ann. d'Economie politique, 1847, 333.) Thus, the
+     same scarcity in Pomerania increased its otherwise smaller
+     mortality relatively less than in Posen. (_Hildebrand's_
+     Jahrbb. 1872, I, 292.) It is a good sign that in Altenburg,
+     between 1835 and 1864, the variation in the price of corn
+     had no influence on its mortality, although the number of
+     marriages and of births was conditioned by it. (_v. Scheel_
+     in _Hildebrand's_ Jahrbb., 1866, I, 161 ff.)]
+
+     [Footnote 246-10: _Sir W. Petty_, Several Essays, 31 seq.
+     Great regularity of epidemics in the tropical world:
+     _Humboldt_, N. Espagne, II, 5. The great plague in the
+     middle of the 14th century is said to have destroyed 2/3 of
+     the population of Norway, of Upland, 5/6; in the mountain
+     districts of Wermeland only 1 boy and 2 girls were left.
+     (_Geijer_, Schwed. Gesch., I, 186.) According to _Sismondi_,
+     Gesch. der Italien. Republiken, VI, 27, 3/5 of the whole
+     population of Europe died at that time. How the cholera
+     would have raged among our forefathers in the middle ages!
+     Certainly, as it does now in the East Indies; since, when of
+     those really attacked by the disease among ourselves so many
+     die, we cannot attribute our small number of deaths from
+     cholera to the smaller intensity of the disease or to the
+     greater skill of our doctors, but chiefly to the better
+     nourishment of our people, to their better dwellings and
+     greater cleanliness. Compare _Heberden_, On the Increase and
+     Decrease of Disease, 1801.]
+
+     [Footnote 246-11: _Bernouilli_, Populationistik, 363, seq.
+     Whether, on this account, we can infer the increased health
+     of the people, is very much doubted by the aged _laudatores
+     temporis acti_. They would have us believe that it is
+     possible that the prolongation of the average of human life
+     is to be explained by taking into account the case of
+     numerous valetudinarians who formerly died early, but who
+     are _now_ preserved to drag out a miserable existence. The
+     relative number of those who have died of old age did not
+     noticeably increase between 1816 and 1860 either in Berlin
+     or in the Prussian state. (_Engel_, Zeitschr., 1862, 222.)
+     Compare, per contra, _Marx_, Ueber die Abnahme der
+     Krankheiten durch die Zunahme der Civilization: transactions
+     of the Goettinger Gesellschaft der Wissenschaften,
+     1842--44,43, ff. The extreme limit of the decrease of
+     mortality, where there are no other causes of death but
+     inevitable weakness of childhood and age, _J. G. Hoffmann_
+     thinks would be one death per annum for every 52-53 living,
+     and _Wappaeus_, one in 57-58. (Allg. Bevoelkerungstatistik, I,
+     231, 340); (_Schaeffle_, System, I, 571); according to
+     Capeland observations, one for every fifty.]
+
+     [Footnote 246-12: This much, however, is clear, that the
+     life insurance companies of the present day cannot rely on
+     the calculations made in earlier stages of civilization; on
+     _Suessmilch's_, for instance; and just as little on those of
+     the old Romans in L. Digest. ad Leg. Falcidiam. Compare
+     _Schmelzer_, De Probabilitate Vitae ejusque Usu forensi,
+     1788.]
+
+
+SECTION CCXLVII.
+
+HISTORY OF POPULATION.--NUMBER OF BIRTHS AND DEATHS.
+
+There is found to be in most states, where a decrease in mortality has
+been observed, a diminished number of births likewise.[247-1] This,
+indeed, happens necessarily only in the case in which the means of
+subsistence either do not increase at all, or in a less degree than
+mortality has decreased. Thus, towards the end of the 18th century,
+Norway was the country where the increase and decrease of the population
+were most remarkable for their smallness. There was only one death
+between 1775 and 1784 for every 48 living persons; but, at the same
+time, only one marriage for every 130 living.[247-2] The organization of
+labor was so little developed among the Norwegians, especially in the
+absence of important cities, the industries of which might have been
+able to absorb the surplus population, that almost every one of its
+inhabitants was in a condition to calculate in advance whether or not he
+would have enough to support a family. A person born in the country
+remained generally in his native village all his life. To found a family
+he had either to own a peasant's estate himself or wait until one of the
+day laborer's huts (_Kathe_), of which there were several attached to
+each such estate, was vacant. A too large family would certainly have
+died of hunger in the winter time. The clear sober sense of the people
+recognized this fact, and all the farm houses of the peasants were
+without any appreciable injury to morality filled with unmarried
+servants of both sexes who were, indeed, supplied with clothes and food
+but who at the same time were indolent and incapable of
+advancement.[247-3] Where a nation's economy is rapidly advancing, there
+is no necessity why the most natural and when properly directed the most
+beneficent human impulse should be sacrificed to a higher average
+duration of life. But if this must be, when the distribution of the
+national resources is pretty nearly equal, it is not so much the number
+of marriages as the average fruitfulness of marriages that will
+diminish; that is as many persons as before may enter the married state
+but most of them are obliged either to postpone doing so until a later
+age, which places a greater interval between generation and generation,
+and causes the number of those living at any one time to decrease; or
+they cease to procreate children at an earlier period in their married
+life. The latter is found especially in France.[247-4] [247-5] But, on
+the other hand, where the distribution of the national resources is very
+unequal, the rich may afterwards as well as before continue to follow
+out their inclination to marry at as early a day and age as they wish;
+but the less fortunate must remain unmarried through life. Here,
+therefore, the average number of children to a marriage does not
+diminish; but the aggregate number of marriages does.[247-6] If the
+relative frequency of marriages in most European countries has
+diminished during the last century, the cause has been in part directly
+the long duration of life of married couples. Hence, we are not always
+warranted in consequence, to infer a diminished number of existing
+marriages.[247-7]
+
+In many countries, it has been recently observed that the average number
+of persons to a family is a decreasing one. Thus for, instance, in 1840,
+in Holland, there were to every hundred families 497 persons, in 1850,
+only 481; in Saxony, in 1832, 460; in 1840, only 443; in Bavaria, in
+1827, 480, in 1846, only 448. In cities also the average size of
+families is usually smaller than in the country.[247-8] This is
+intimately connected with this other fact that in the higher stages of
+civilization a larger number of independent households consists of
+single persons in contradistinction to married couples.[247-9] [247-10]
+
+     [Footnote 247-1: In France there was one child born alive,
+
+          In 1801-1805, on every 30.9 living.
+          In 1806-1810,  "       31.6   "
+          In 1811-1815,  "       41.5   "
+          In 1816-1820,  "       31.6   "
+          In 1821-1825,  "       32.1   "
+          In 1826-1830,  "       33.0   "
+          In 1831-1836,  "       34.0   "
+          In 1846-1850,  "       37.8   "
+          In 1851-1854,  "       37.88  "
+          In 1860-1864,  "       37.56  "]
+
+     [Footnote 247-2: _Malthus_, Principle of Population, II, ch.
+     1. In Denmark, at the same time, 1 in 37 and 114.
+     (_Thaarup_, Daenische Statistik., II, 1, 4.)]
+
+     [Footnote 247-3: In modern times, the intellectual and legal
+     conditions which existed in Norway have been loosened to a
+     great extent, and population in that country has, in
+     consequence, made rapid advances. In 1769 the population was
+     only 723,000; in 1855, it was 1,490,000. But the above
+     customs for the most part continue still. Between 1831 and
+     1835, there was one marriage a year for every 138 living
+     persons. The relative number of marriages is smaller than
+     before. In 1769, there were, in every 1,000,376 married
+     persons; in 1801, 347; in 1825, 345; in 1835, 322. In 1805,
+     there were only 63 illegitimate births to every 1,000
+     births; in 1835, the proportion was 71.5 in every 1,000.
+     (_Blom_, Statistik Con N., II, 168, 173.)]
+
+     [Footnote 247-4: In England, there were, in 1838-47, of
+     every 1,000 contracting marriage, 94 who had not yet
+     completed their 21st year; in Belgium, 1840-50, only 54; but
+     the famine year, 1846-47, noticeably lowered the relative
+     number of minors in both countries. There were married--
+
+     Column Head Key:  A - _In Belgium 1841-50._
+                       B - _In the purely Flemish provinces._
+                       C - _In the purely Wallonic provinces.
+                       D - _Sweden 1831-35._
+     ==============================================================
+                  |   A   |   B   |   C   |             D
+     -------------+-------+-------+-------+------------------------
+                  |  per  |  per  |  per  |
+                  | 1,000 | 1,000 | 1,000 |
+     Before their
+       21st year  |   56  |   32  |   74  |{ 359 per 1,000 males.
+     From 22 to   |       |       |       |{
+       25 years   |  219  |  181  |  259  |{ 463 per 1,000 females.
+
+     From 26 to   |       |       |       |{458 males, 387 females,
+       35 years   |  503  |  511  |  490  |{   per 1,000.
+
+     From 36 to   |       |       |       |
+       45 years   |  161  |  191  |  129  |{ 183 per 1,000 males.
+     After their  |       |       |       |{
+       45th year  |   61  |   75  |   48  |{ 150 per 1,000 females.
+     ==============================================================
+
+     But it must not be overlooked here, that the Flemish
+     provinces of Belgium had been for a long time in a sad
+     economic condition. (_Horn_, Studien, I, 75 ff.) No less
+     characteristic of the well-being of a people and their
+     providence in entering into the married state is the
+     relative age at which they contract marriage. If we divide
+     ages into four classes (up to the 30th year, between 31 and
+     45, between 46 and 60, and after 60), we find, for instance,
+     that from 1841 to 1845, there were in West Flanders 585 per
+     1,000 marriages between persons of the same age-class, 305
+     in which the husband, and 110 in which the wife belonged to
+     an older class; in Namur, on the other hand, 683, 234 and
+     83. In dear years, the relative number of marriages between
+     persons belonging to different age-classes, and the relative
+     difference in age of parties to the marriage contract
+     increases.
+
+     And so, the frequency of second marriages of widows and
+     widowers is no favorable symptom of the facility of founding
+     a family. Naturally every woman prefers a man who was never
+     married before to a widower; and every man a maiden to a
+     widow; but where there is a want of room to establish a new
+     household, the possession of such one by a widower may
+     readily preponderate over all counter considerations. Thus,
+     for instance, in the Flemish provinces of Belgium, of 1,000
+     widowers, from 365 to 395 marry again; in the Wallonic, only
+     from 293 to 308. Of 1,000 brides, 98 are widows in West
+     Flanders, and in Namur, 41. A similar proportion in Bavaria
+     between the Palatinate and the hither-districts. (_Hermann_,
+     Bewegung der Bevoelkerung in Bayern, p. 14.) The less the
+     frequency of marriage in general, the greater is the
+     relative probability of second marriage for widows and
+     widowers; and hence, in years of scarcity, the latter
+     relatively increase. (_Horn_, Studien, I, 201 ff.) Sometimes
+     this increase is absolute: in Austria, during the cheap year
+     1852, there were 231,900 marriages between persons never
+     before married, and 85,000 in which at least one of the
+     contracting parties had been married before. On the other
+     hand, during the dear year 1855, there were only 156,000 of
+     the former and 89,000 of the latter. Something analogous,
+     observed in antiquity. (_Pausan._, II, 21, 8; X, 38, 6;
+     _Propert._, II, 11, 36.) _Tacitus_, Germ., 19, describes the
+     moral feelings of the ancient Germans as averse to the
+     second marriage of widows, and he apparently approves it.]
+
+     [Footnote 247-5: In 19 European countries, with an aggregate
+     population of 121,000,000, the number of the married
+     amounted to an average of 34.88 per cent. of the whole
+     population. France is at the head with 38.94 per cent.
+     (1866), even 40.5. In these countries, of all adults, there
+     is a percentage of 65.98 who marry. France is here, also, at
+     the head, with a percentage of 73.58. And the number of the
+     unmarried has continually decreased in post-revolutionary
+     France. In 1806, there were only 35.84 per cent. of the
+     population married. (_Wappaeus_, A. Bevoelk erungsstatistik,
+     II, 219, 223, 229.) In relation also to the frequency of
+     first marriages and of marriage at the proper age, France is
+     the best situated country. (_Haushofer_, Lehr- und Handbuch
+     der Statistik, 40 ff.) But at the same time, in what
+     concerns the fruitfulness of marriage, it is the farthest
+     behind; and since 1780 prolificacy has continually decreased
+     there. Thus, 1800-1815, 3.93 legitimate children to a
+     marriage; 1856-60, only 3.03; 1861-6, again 3.08. (_Legoyt_
+     in the Journal des Econ. Oct. 1870, 28.) How little this
+     depends upon physiological causes may be inferred from the
+     fact that _Strabo_ commends the women of the Gallic race for
+     their peculiar adaptability to bearing and rearing children.
+     (IV, 178, 196.) The "prudential checks" must play a
+     principal part in producing a low birth rate. (Statist.
+     Journal, 1866, 262), as we find in France
+
+     ============================================================
+                   |  _Yearly per 100_      |
+                   |   _inhabitants._       | _Women who marry_
+         _In_      +------------------------+ _before their 25th_
+                   |_Marriages._| _Births._ | _year_.
+     --------------+------------+-----------+--------------------
+     Brittany,     |    7.0     |    29.8   |    42.7 per cent.
+     Adour,        |    6.9     |    25.0   |    47.3    "
+     Lower Garonne,|    8.3     |    22.0   |    59.7    "
+     Upper Seine   |    8.0     |    23.7   |    60.0    "
+     ============================================================
+
+     That, however, the shorter duration and smaller fruitfulness
+     of marriage by no means necessarily accompany one another,
+     France also proves, since it possesses the longer average
+     duration of marriage: 26.4 years against 20.7 in Prussia.
+     (_Wappaeus_, II, 311, 315.)]
+
+     [Footnote 247-6: The proportion of the married to the whole
+     population declined in Prussia from 35.09 in 1816, to 33.09
+     per cent. in 1852; in Sweden, from 36.41 in 1751 to 32.59
+     per cent. in 1855; in Norway, from 37.60 per cent. in 1769
+     to 32.21 per cent. in 1855; in Saxony, from 35.52 per cent.
+     in 1834, to 34.98 per cent. in 1849. (_Wappaeus_, II, 229.)
+     If all who are at least 20 years of age be considered
+     competent to marry, there are of every 1,000 thus competent
+     in Belgium, 520 actually married; in the Flemish provinces
+     alone, 489; in the most favorably situated Wallonic, 554.
+     (_Horn_, Bevoelk. Studien, I, 139 ff.) In Rome, under
+     Augustus, the proportion was much less satisfactory. In the
+     higher classes, a large majority did not marry at all.
+     (_Dio. Cass._, I, VI, 1.)]
+
+     [Footnote 247-7: In Halle, in 1700, there was one marriage
+     for every 77 of the population; in 1715, for every 99; in
+     1735, for every 140; in 1755, for every 167. In Leipzig, in
+     1620, there was one for every 82; 1741-1756, for every 118;
+     1868, for every 92.8. In Augsburg, 1510, one in 86; in 1610,
+     in 108; in 1660, in every 101; in 1750, in every 123. The
+     provinces of Magdeburg, Halberstadt, Cleve, Mark, Munden,
+     Brandenburg, Pomerania and Prussia had, about the end of the
+     seventeenth century, one marriage per annum for every 76-95
+     of the population; the Prussian monarchy, 1822-1828, one
+     marriage for every 109-121. Compare _Sussmilch_ Goettl.
+     Ordnung, I., 131, ff., _Schubert_ Staatskunde des preuss.
+     Staates I., 364. In France, 1801-1805, there was one
+     marriage per annum in every 137 living; in 1821-5, for every
+     129; in 1831-35, for every 127; in 1842-51, for every
+     125.39; in 1860, for every 124.7.]
+
+     [Footnote 247-8: In Prussia, in 1849, there were in every
+     one hundred families in the cities, 492 individuals; in the
+     country, 512. In Belgium, in 1846, 459 and 497 respectively.
+     (_Horn_, Bevoelk. Studien, I, 88, ff.) In France, in 1853, in
+     the cities, 358; in Paris alone, 299. In the Zollverein, the
+     number of individuals in a family increased in 1852-55, 5.81
+     per cent.; the population only 3.02 per cent.; the
+     population of those over fourteen years of age, by 4.41 per
+     cent.; of minors by 1.02 per cent. Only in Saxony and the
+     cities of Hanover was the reverse the case. (_v. Viebahn_,
+     II, 278, seq.)]
+
+     [Footnote 247-9: Thus, for instance, in Belgium, for every
+     100 households, there are 74 marriages; in the cities of
+     Belgium, 70; in the Belgian country parishes, 75; in Prussia
+     in 1849, 84. (_Horn_, I, 93 seq.) It is estimated that in
+     Prussia, only 3 per cent. of the adult population live
+     outside of the family. (_Viebahn_, II, 273.)]
+
+     [Footnote 247-10: It is strange that _Suessmilch_, Goettl.
+     Ordnung, I, Sec. 13, considers mortality an unalterable law,
+     while he fully recognizes the social grounds which caused
+     the frequency and prolificacy of marriages to vary (I, Sec. 56,
+     99).]
+
+
+SECTION CCXLVIII.
+
+HISTORY OF POPULATION.--NUMBER OF BIRTHS AND DEATHS.
+
+So far as the mere number of the population is concerned, it is
+obviously a matter of indifference whether there are annually 1,000
+births and 800 deaths, or 2,000 births and 1,800 deaths. But we see in
+the former an element of higher civilization,[248-1] especially, on
+account of the conditions which determine it. It can occur only where
+even the most numerous, that is the lower class, feel other wants than
+those of the mere means of existence and of the satisfaction of the
+sexual instinct: wants, duties which probably could not be satisfied in
+a state of marriage thoughtlessly entered into; where the virtues both
+of foresight and self-control are very generally practiced.
+
+And then let us consider the consequences. The efficacy of the
+repressive hinderances to over-population either consists in immoral
+acts or easily leads to immorality. Until a "surplus" child has died,
+what a series of troubles for good parents, and what a chain of evil
+deeds for bad ones, to say nothing of the poor child itself.
+
+Further, every man, no matter how short or long his life, requires a
+large advance of capital and trouble which he has later to return to
+society through the activity of his riper years. If he dies before his
+maturity, this advance has been made in vain. The more, therefore, the
+population of a country, in order to maintain itself within the bounds
+of its field of food, has to calculate on the death of children, the
+greater is this loss.[248-2] Hence, from a national-economic point of
+view, it is to be considered a great advance, that in England in 1780,
+there was one death among its people under 20 years of age in every 76
+of the population, in 1801, in every 96, in 1830, in every 124, in 1833,
+one only in every 137. (_Porter._) Lastly, the longer the average
+duration of life of a child the greater, other circumstances remaining
+the same, the number of grown people as compared with that of the
+children; but grown people are, as a rule, independent, capable of
+self-defense, economically productive, competent to discharge all the
+rights and duties of citizenship, while children are dependent,
+incapable of self-defense, unproductive, immature. Only he who knows the
+relative numbers of the different age-classes of a nation can draw
+fruitful conclusions from the data per capita relating to taxation, from
+the statistics of crime, suicides, illegitimate births, of
+school-children, etc., or judge correctly of a locality's military
+contingent.[248-3] [248-4] Here, indeed, it should not be overlooked that
+in the highest age-classes, human beings return in many respects to the
+helplessness of childhood. Yet, as a rule, to reach a good old age is
+generally considered a personal good fortune; and the existence of a
+great many aged persons in a country, if not in itself an advantageous
+element in its economy, may, nevertheless, be called a pleasing
+symptom.[248-5] On an average there is only one person over sixty to
+every twelve under fifteen years of age. (_J. G. Hoffmann._) We may,
+hence, readily measure what an advantage France possesses in this, that
+in 1861, in every 1,000 inhabitants, only 273 were under fifteen years
+of age, 524 between sixteen and fifty, the most vigorous years of life,
+and 203 over fifty years old. The average age of the French population
+was 31.06 years against 27.22 in Sardinia and 25.32 in Ireland.
+
+However, a positively unfavorable conclusion from a relatively large
+number of children in a nation should not be drawn except in the case of
+a people the limits of whose field of food cannot be extended. (Sec. 239.)
+Where the nation's economy has a rapid growth, as for instance in young
+colonies, the comparatively easy rearing of children which there
+obtains, without any corresponding mortality, is not so much considered
+a burthen[248-6] as a symptom of their good fortune and even a positive
+good.[248-7] On the other hand, of the Belgian provinces, for instance,
+suffering Flanders had relatively the smallest number of children,
+because it had the largest child-mortality.[248-8]
+
+Almost all the signs which, according to the above paragraphs,
+distinguish a higher stage of civilization from a lower, may be shown
+within the limits of the same age and nation to characterize the upper
+classes as compared with the lower. We may even claim that the greater
+foresight and self-control of the former in the matter of marriage and
+in the procreation of children, since the abolition of the greater
+number of legal advantages of class, are by far the most important of
+the elements constituting their superiority over the latter. The word
+proletariat, from _proles_, means first of all, having many children
+(_Vielkinderei_)!
+
+     [Footnote 248-1: _J. Moeser_ did not even dream of this.
+     Patr. Phant., I, 15.]
+
+     [Footnote 248-2: _Rossi_, Cours d'Economie politique, I,
+     371, estimates the cost of bringing up a child to its 16th
+     year at a minimum of 1,000 francs. Hence, a country with
+     1,000,000 births annually, in which only 50 per cent. reach
+     that age, would lose 500,000,000 francs per annum. However,
+     over one-third of the children in question die in the first
+     years of childhood, and the rest do not reach on an average
+     their 16th year, but die between the age of 7 and 8:
+     _Bernouilli_, Populationistik, 259. _Engel_ estimates
+     Saxony's "man-capital" at 4 times the value of all the land
+     in the country, and at 10 times the value of all movable
+     property. (Saechs., Statist. Zeitschr., 1855, No. 9. Preuss.
+     Statist. Zeitschr., 1861, 324.) One of the chief advocates
+     of the view that there is an investment of capital in every
+     child is _Chadwick_ in the opening address delivered by him
+     before an English learned society at Cambridge: Statist.
+     Journal, Dec., 1862. Lancashire alone pays a penalty per
+     annum for preventable deaths of L4,000,000, for the funeral
+     and medical expenses; to say nothing of the capital lost
+     (506).]
+
+     [Footnote 248-3: _Bernouilli_, Populationistik, 51 ff.
+     _Quetelet_, Recherches statist. sur le Royaume des Pays-Bas,
+     1827, 1, 9, and Du Systeme social, 1848, 176 ff., specially
+     called attention to the important differences in this
+     relation, between the productive and unproductive years of
+     life. Thus it should not be forgotten, when reading of the
+     greater mortality of the poor quarters of Paris, that
+     strangers who are for the most part in the vigorous years of
+     life, live there least of all.]
+
+     [Footnote 248-4: In Russia, it seems that only 36 per cent.
+     of all those born outlive their 20th year; in England, 55
+     per cent. (_Porter_, Progress, ch. I, 29.) The Russian
+     peasants are said to have from 10 to 12 children, only about
+     one-third of whom grow to maturity, (_v. Haxthausen_, I,
+     128.) In the United States, the population was in 1820
+     divided into two nearly equal parts as to age, the 16th year
+     of age forming the dividing point; in England the same was
+     the case, only the dividing point was 20 years of age.
+     (_Tucker_, Progress of the United States, 16, 63.)]
+
+     [Footnote 248-5: There were in
+
+     ---------------------------------------------------------------
+                   |_Years._|_From 0 to_ |_From 16 to_ | _Over 50_
+                   |        | _15 years_ |  _50 years_ |  _years_
+                   |        | _of age._  |  _of age._  | _of age._
+     ---------------------------------------------------------------
+                   |        |  Per 1,000 |  Per 1,000  |  Per 1,000
+                   |        | of the pop.| of the pop. | of the pop.
+                   |        |            |             |
+     Belgium,      |  1846  |    323     |     509     |     168
+     Prussia,      |  1849  |    370     |     504     |     126
+     Great Britain,|  1851  |    354     |     504     |     142
+     Holland,      |  1849  |    333     |     509     |     158
+     Saxony,       |  1840  |    339     |     505     |     156
+     Sweden,       |  1850  |    328     |     511     |     161
+     ---------------------------------------------------------------
+
+     In Great Britain, the census of 1851 gave 596,030 persons
+     over 70 years of age; 9,847, over 90; 2,038, over 95; 319,
+     over 100 years of age. (Athen., 12 Aug., 1854.) In France,
+     in 1851, there were 1,319,960 persons seventy years of age
+     and over. In the United States the population of--
+
+     ----------------------------------------------------------------
+                             |  _Per English_ | _Relative number of
+                             | _square mile._ | _children under ten
+                             |                | _years._
+     ----------------------------------------------------------------
+                             |  1800 |  1840  |    1800   |   1840
+     ------------------------|---------------------------------------
+                             |       |        | per cent. | per cent.
+     New England,            | 19.2  |  34.8  |    63.5   |  51.1
+     The Middle States,      | 15.3  |  43.6  |    70.7   |  55.7
+     The Southern States,    |  8.9  |  15.9  |    73.0   |  67.8
+     The Southwestern States,|  1.3  |  13.7  |    77.6   |  75.5
+     The Northwestern States,|  2.3  |  25.5  |    84.9   |  73.8
+     ----------------------------------------------------------------
+
+     In the whole Union, in 1830, the age classes up to 20 years
+     embraced 56.12 per cent. of the population; in 1840, 54.62
+     per cent; in 1850, 51.85 per cent. Compare _Horn_, Bevoelk.
+     Studien, I, 126; _Wappaeus_, A. Bevoelk. Stat., II, 44, 125
+     ff., 88; _Tucker_, Progress of the United States, 105.]
+
+     [Footnote 248-6: As _Wappaeus_ says that in America an equal
+     number of adults must work for at least a third larger
+     number of children than in Europe: "a much more unfavorable
+     situation, so far as production-force is concerned." (A.
+     Bevoelk. St., II, 44.)]
+
+     [Footnote 248-7: _Horn_, I, 127 ff. The Becoming is not only
+     more pleasant than the Having become, but it may even stand
+     higher in so far as the latter consists only in being
+     resigned to further development.]
+
+     [Footnote 248-8: _Les mendiants sont dans le cas des peuples
+     naissants_ etc. _Montesquieu_, E. der Lois, LXXIII, 11. In
+     England and Wales in 1851-60, there died yearly before their
+     sixth year, 7.24 per cent. of all male children born, but in
+     the families of peers, only 2.22 per cent. (Stat. Journal,
+     Sept., 1865.) If we grade the quarters of the city of Berlin
+     according to the well-being of their inhabitants, we find
+     that in the lower, the number of married men between 18 and
+     25 years is successively greater 1.1, 1.4, 2.4 and 3.4 per
+     cent. (_Schwabe_, Voelkszaehlung von, 1871, 24.)]
+
+
+SECTION CCXLIX.
+
+HISTORY OF POPULATION.--IN PERIODS OF DECLINE.
+
+Nations involved in political and religious decline are wont to lose the
+moral foundation of the situation last described. Here, therefore,
+again, both the repressive (which are almost always immoral) tendencies
+counter to over-population, and the viciously preventive occupy the most
+prominent place. We may most completely observe this spectacle among the
+heathen nations of later antiquity. But, unfortunately, even among
+modern nations, we find some analogies to the ancient, to which the
+political economist may point with the finger of warning. "For unto
+every one that hath shall be given, and he shall have abundance; but
+from him that hath not shall be taken away even that which he hath."
+This universally applicable truth explains the fact that all successive
+acts of immorality, the more frequently they occur the less severely are
+they branded by public opinion.
+
+A. We are not warranted, from the relative[249-1] number of illegitimate
+births, to draw too direct an inference in relation to the morality of a
+people. Where, for instance, as in the kingdom of Saxony, the annual
+frequency of marriage was 0.017 of the population, every illegitimate
+birth bears evidence of a greater absence of self control than in
+Bavaria, where, on every one thousand living, there were only thirteen
+marriages a year.[249-2] In many quarters, where the economic relations
+are very stable, and where peasant estates (_geschlossene Bauergueter_)
+are subject to a species of entailing, where consequently the son can
+engage in marriage only after the death of the father, illegitimate
+children are in great part legitimatized by subsequent marriage at a
+later time, and meanwhile brought up in the family of the mother like
+legitimate children.[249-3] Evidently the guilty inconstancy creative of
+ephemeral _liaisons_, and the neglect of the children born of them, do
+not here produce the sad effects which they are wont to in the large
+cities, where illegitimate relations are made and dissolved with
+shocking rapidity. However, births are seldom heard of in the case of
+ruined debauchees.
+
+At the same time, the frequency of illegitimate births is always an
+evidence that the rightful founding of a home is made difficult[249-4]
+by the economic condition of the police provisions of a country; and
+that the moral force of the people does not suffice to resist the
+temptation[249-5] which such condition and provisions suppose. In the
+latter respect, this phenomenon may be considered, not only as a symptom
+but also as a cause: since bastards are generally very badly brought up.
+A large parthenic population is always an element of great danger in a
+state.[249-6] The frequency of illegitimate children must, however, be
+designated as a tendency counter to over-population, for the reason that
+still-born births and early deaths occur much more frequently among them
+than among legitimate children.[249-7]
+
+B. The trade of the women of the town is indeed an exceedingly old
+one.[249-8] But this evil assumes large dimensions only where a large
+class of men and women have no prospect to marry at all, or only late in
+life; especially when, at the same time, families have become
+unaccustomed to keeping together for life.[249-9] Prostitution may be
+considered a counterpoise to over-population, not only because of the
+polyandry it involves, but also of the infecundity of its
+victims.[249-10] Even the diseases which it propagates are not without
+importance in this regard. The love of change and impatience of
+restraint which it produces keeps many a man who, economically
+considered, might very well engage in marriage, in a state of criminal
+celibacy.[249-11] This moral poisoning of the nation's blood is more
+pernicious in proportion as vice is decked with the charms of
+intellect,[249-12] and reflected in literature and art.[249-13] When
+Phryne had wealth enough to project the rebuilding of Thebes, and
+boldness enough to ask to be allowed to put this inscription on its
+walls: "Alexander destroyed them, but Phryne, the hetaera, rebuilt them,"
+not only the dignity but the nationality of Greece was gasping for the
+last time for breath.[249-14] [249-15]
+
+C. I know no sadder picture in all history than the wide diffusion and
+even sovereignty which unnatural vice possessed among the declining
+nations of antiquity. Egypt and Syria seem to have been the original
+seat of this moral plague.[249-16] In Greece, there was a time noted for
+the brilliancy of its literature and art, when the poetic fancy, in its
+dreams of love, pictured to itself only the forms of beautiful boys; and
+that this love was generally an impure one, there is, unfortunately, no
+room to doubt.[249-17] In more ancient Rome, it was most severely
+punished;[249-18] but afterwards, again, it seemed reprehensible to a
+Tibullus only when it was bought with money.[249-19] Even under Caesar, a
+censor could threaten an aedile with a charge of sodomy; the latter
+reciprocate the threat, and think it witty to invite a man like Cicero
+to assist at the curious argument which such a case might call forth,
+before a pretor with a reputation of being guilty of the same
+vice.[249-20] When the horrible deeds of which Tiberius was guilty are
+known, we cannot consider them capable of exaggeration. But Tiberius, at
+least, sought secrecy, while Nero, Commodus and Heliogabalus felt a
+special delight in the publicity of their shame.[249-21] [249-22] [249-23]
+
+     [Footnote 249-1: The ratio between the number of
+     illegitimate births and legitimate, so generally brought
+     forward, leads to no correct conclusions whatever. The ratio
+     between the number of illegitimate births, on the other
+     hand, and marriageable men and women, especially of those
+     who are yet unmarried, may afford a basis for valuable
+     inferences. Compare _Hoffmann_, in the Preuss.
+     Staatszeitung, 1837, No. 18. In Prussia, nearly 75 per cent.
+     of all women between 17 and 75 are married. (_v. Viehbahn_,
+     II, 189.)]
+
+     [Footnote 249-2: In Bavaria, not only was the frequency of
+     marriage surprisingly small (one marriage a year in every
+     151.59 inhabitants, while the average in 14 European
+     countries was 1 in 123.9), but marriage was there contracted
+     at a surprisingly advanced age. Of 10,000 of both sexes
+     engaging in marriage, there were, in Bavaria, only 2,081 25
+     years of age and less, while in England, there were 5,528.
+     Compare _Wappaeus_, A. Bevoelk. Statistik, II, 241, 270.]
+
+     [Footnote 249-3: In Oldenburg, it is estimated that 48 per
+     cent. of its illegitimate children are legitimatized _per
+     subsequens matrimonium_ (_Rau-Hanssen_ Archiv. N. F., I, 7),
+     in the agricultural districts of Nassau even 70 per cent.
+     (_Faucher's_ Vierteljahrsschrift, 1864, II, 19), in the whole
+     of Bavaria, 15 per cent.; in the Palatinate, 29.7 per cent.
+     (_Hermann_, Bewegung der Bevolkerung, 20); in the Kingdom of
+     Saxony, 1865, at least 21 per cent. (Statist. Zeitschr.
+     1868, 184.) In France 10 per cent. of the marriages
+     contracted legitimatize children. (_Legoyt_, Stat. Comp.,
+     501); in Saxony, 1865, 11.7; in Bavaria up to 1852, about
+     1/8 of the marriages belonged to this category; 1858-61,
+     1/7; 1861-64, nearly 1/6. Compare Heft XII, of the official
+     statistics. In the manufacturing towns of France, especially
+     the border ones, a large number of the children of female
+     operatives and of males having their domicile in foreign
+     parts, are legitimatized by marriage: thus in Muehlhausen,
+     23.7 per cent. Recherches statist. sur M., 1843, 62.]
+
+     [Footnote 249-4: In Mecklenburg-Schwerin there was one
+     marriage
+                                 _1841._
+          On domanial lands, on every 137 of population.
+          On manor      "        "    145       "
+          On monastery  "        "    163       "
+          In the cities "        "    115       "
+                                 _1850._
+          On domanial lands, on every 149 of population.
+          On manor      "        "    269       "
+          On monastery  "        "    175       "
+          In the cities "        "    104       "
+
+     The number of illegitimate births stood to the aggregate
+     number of births in 1800, as 1:16; in 1851, as 1:4.5; in
+     1850-55, as 1:4.8; in 1856-59, as 1:5.04; in 1865, as 1:4.0;
+     in 1866, as 1:4.8; in 1867, as 1:5.33; in 1868, as 1:6.0; in
+     1869, as 1:7.2; in 1870, as 1:7.08, In 260 localities, in
+     1851, 1/3 and more of the aggregate number of births were
+     illegitimate; in 209, 1/2 and more, and in 79 the entire
+     number! The small improvement afterwards made was probably
+     due in great part to emigration, which from 1850 to 1859
+     must have amounted to 45,000. How relative the idea of
+     over-population even in this respect is, is shown by the
+     small number of illegitimate births in very densely
+     populated parts of England--Lancashire, Middlesex, Warwick,
+     Stafford, West York--while districts as thinly populated as
+     North York, Salop, Cumberland, Westmoreland, have very many
+     illegitimate births. The number increases in the best
+     educated districts, where their "education" begins to cause
+     them to make "prudent" and long delays in marrying.
+     (_Lumley_, Statistics of Illegitimacy: Statist. Journal,
+     1862.)]
+
+     [Footnote 249-5: Strikingly more favorable influence of the
+     _ecclesia pressa_. In Prussia, in 1855, the Evangelicals had
+     12.3 legitimate births for one illegitimate; the Catholics
+     19.4, the Jews 36.7, the Mennonites 211.5. (_v. Viebahn_,
+     II, 226.)]
+
+     [Footnote 249-6: The relative number of illegitimate births
+     in many nations of to-day is unfortunately an increasing
+     one. In France, in 1801, only 4.6 per cent. of all live
+     births were illegitimate; in 1811, 6.09; in 1821, 7.07; in
+     1830, 7.2; in 1857, 7.5; 1861-65, 7.56 per cent. The German
+     especially must confess with deep shame that the southern
+     half of the fatherland presents a very unfavorable picture
+     in this respect. Can a nation be free when its capital,
+     Vienna (1853-56), counts on an average 10,330 illegitimate
+     and 11,099 legitimate births? Compare _Stein-Wappaeus_,
+     Handbuch der Geogr., IV, 1, 193. According to observations
+     made between 1850 and 1860, in England between 1845 and
+     1860, there were in Holland for every 1,000 legitimate
+     births 44 illegitimate, in Spain 59, in England and Wales
+     71, in France 80, in Belgium 86, in Prussia 91, in Norway
+     96, in Sweden 96, in Austria 98, in Hanover 114, in Saxony
+     182, in Bavaria 279. (Statist. Journ., 1868, 153.) Compare
+     _Wappaeus_, A. Bevoelk. Stat., II, 387. In Russia, according
+     to _v. Lengefeld_, 36.9; in the electorate of Mark, 1724-31,
+     1 in 18. (_Suessmilch_, I, Sec. 239.) During the 17th century it
+     is estimated that the ratio of illegitimate to legitimate
+     births in Merseburg was as 1:22-30, in Quedlinburg as
+     1:23-24, in Erfurt as 1:13-1/2. (From the Kirchenbuecher in
+     _Tholuck's_ Kircliches Leben, etc., I, 315 seq.) In Berlin
+     in 1640, only 1-2 per cent. of illegitimate births.
+     (_Koenig_, Berlin, I, 235.) In Leipzig, 1696-1700, 3 per
+     cent.; 1861-65, 20 per cent. _Knapp_, Mitth. des. Leipz.
+     Statist. Bureaus, VI, p. X.]
+
+     [Footnote 249-7: Thus, in 1811-20, the still-born births in
+     Berlin, Breslau and Koenigsberg amounted to five per cent. of
+     the legitimate, and to eight per cent. of the illegitimate;
+     in the country places in Prussia, to 2-3/4 and 4-3/4 per
+     cent. Of 384 illegitimate children born in Stettin in 1864,
+     45 were still-born and 279 died in their first year. (_v.
+     Oettingen_, Moralstatistik, 879.) In the whole monarchy,
+     1857-58, three to 4 per cent. of legitimate children died at
+     birth, and 5 to 6 per cent. of the illegitimate; while
+     during the first year of their age 18-19 per cent. of the
+     former, and 34-36 per cent. of the latter, died (_v.
+     Viebahn_, II, 235). In France, in 1841-54, of the legitimate
+     births, an average of 4 per cent., and of illegitimate 7 per
+     cent., was still-born; and the probability of death during
+     the first year of life was 2.12 times as great for an
+     illegitimate child as for one born in lawful wedlock.
+     (_Legoyt._) After the first year the proportion changes.]
+
+     [Footnote 249-8: Genesis, 38; Joshua, 1, ff.; Judges, 16, 1,
+     ff. It must not here be overlooked that the Canaanites
+     possessed a much higher degree of economic culture than the
+     contemporary Jews. In Athens, Solon seems to have
+     established brothels to protect virtuous women. (_Athen._,
+     XIII, 59.) In France, as early a ruler as Charlemagne took
+     severe measures against prostitution. (_Delamarre_, Traite
+     de Police, I, 489.) Compare L. Visigoth., III, 4, 17, 5.]
+
+     [Footnote 249-9: Travelers are wont to be the first to make
+     use of prostitution. I need only mention the extremely
+     licentious worship of Aphrodite (Aschera) which the
+     Phoenicians spread on every side: in Cypria, Cytherae, Eryx,
+     etc. Connected with this was the mercenary character of the
+     Babylonian women (_Herodot._, I, 199); similarly in Byblos
+     (_Lucian_, De dea Syria, 6); Eryx (_Strabo_, VI, 272:
+     _Diod._, IV, 83), in Cypria; (_Herodot._, I, 105, 199);
+     Cytheria (_Pausan._, I, 14); Athenian prostitutes in Piraeeus
+     and very early Ionian in Naucratis. (_Herodot._, II, 135.)
+     In all the oases on the grand highways of the caravans, the
+     women have a very bad reputation. Temporary marriages of
+     merchants in Yarkand, Augila, etc. (_Ritter_, Erdkunde, I,
+     999, 1011, 1013, II, 360; VII, 472; XIII, 414.) It is
+     remarkable how the legislation of German cities at the very
+     beginning of their rise was directed against male bawds and
+     prostitutes; at times with great severity, the death penalty
+     being provided for against the former and exile against the
+     latter, while the earlier legislation of the people was
+     directed only against rape. (_Spittler_, Gesch. Hannovers,
+     I, 57 ff.)]
+
+     [Footnote 249-10: Conception in the case of women of the
+     town is indeed not a thing unheard of, but abortion
+     generally takes place or is produced; their confinement is
+     extremely dangerous, and nearly all the children born of
+     them die in the first year of their life. (_Parent Du
+     Chatelet_, Prostitution de Paris, 1836, I, ch. 3.)]
+
+     [Footnote 249-11: In the time of Demosthenes, even the more
+     rigid were wont to say that people kept hetaeras for
+     pleasure, concubines to take better care of them, wives for
+     the procreation of children and as housekeepers. (adv.
+     Neaeram., 1386.)]
+
+     [Footnote 249-12: In Greece as well as in Rome, only slaves,
+     freedmen and strangers sold their bodies for hire; but under
+     the Emperors, prostitution ascended even into the higher
+     classes. (_Tacit._, Ann. II, 85; _Sueton._, Tiber, 35;
+     _Calig._,41; _Martial_, IV, 81.) Concerning the Empress
+     Messalina, see _Juvenal_, VI, 117 ff. Address of
+     Heliogabalus to the assembled courtesans of the capital,
+     whom the Emperor harrangued as _commilitones_. (_Lamprid_,
+     V.; Heliogabali, 26.) In Cicero's time, even a man of such
+     exalted position as M. Coelius was paid for cohabitation
+     with Clodia, and even moved into her house. (_Drumann_,
+     Gesch. Roms., II, 377.) Even in Socrates' time, the hetaeras
+     at Athens were probably better educated than wives: Compare
+     _Xenophon_, Memorabilia, III, 11.]
+
+     [Footnote 249-13: On the Pornographs of antiquity, see
+     _Athen._, XIII, 21. Even _Aristophanes_ was acquainted with
+     some of the species. (Ranae, 13, 10 ff.) Compare _Aristot._,
+     Polit., III, 17. _Martial_, XII, 43, 96. Of modern nations,
+     Italy seems to have been the first to produce such poison
+     flowers: _Antonius Panormita_ (ob. 1471); _Petrus Aretinus_
+     (ob. 1556). Of the disastrous influence on morals, during
+     his time, of obscene pictures, _Propert_, II, 5, complains.
+     It is dreadfully characteristic that even a Parrhasios
+     painted wanton deeds of shame. (_Sueton._, Tiber, 44), and
+     that Praxiteles did not disdain to glorify the triumph of a
+     _meretrix gaudens_ over a _flens matrona_. (_Plin._, H. N.,
+     XXXIV, 19.) But indeed also Giulio Romano!]
+
+     [Footnote 249-14: Compare _Jacobs'_ Vermischte Schriften,
+     IV, 311 ff.: _Murr_, Die Mediceische Venus und Phryne,
+     1804.]
+
+     [Footnote 249-15: The number of registered prostitutes in
+     Paris, in 1832, amounted to 3,558; in 1854, to 4,620
+     (_Parent Du Chatelet_, ch. 1, 2); in 1870, to 3,656. These
+     figures are evidently much below the real ones. Compare the
+     extracts from the abundant, but, in particulars, very
+     unreliable literature on the great sin of great cities, in
+     _v. Oettingen_, Moralstatistik, 452 ff. According to the
+     Journal des Econ., Juin, 1870, 378 ff., there was an
+     aggregate of 120,000 _femmes, qui ne vivent que de
+     galanterie_.]
+
+     [Footnote 249-16: _Nequitias tellus scit dare nulla magis_,
+     says _Martial_, of Egypt. Worship of Isis, in Rome:
+     _Juvenal_, VI, 488 ff. See, further, _Herodot._, II, 46, 89;
+     _Strabo_, XVII, 802. On Syria, see Genesis, 19, 4 ff., 9
+     seq.; Leviticus, 18, 22 seq., 20, 13, 15. The _cunnilingere_
+     of Phoenician origin. (_Heysch_, _v._ skylax.) Frightful
+     frequency of the _fellare_ and _irrumare_ in Tarsis: _Dio
+     Chrysost._, Orat, 33. The Scythians also seem to have
+     learned the nousos theleia (pederasty?) in Syria:
+     _Herodot._, I, 105. Similarly during the crusades.]
+
+     [Footnote 249-17: Compare _Becker_, Charicles, I, 347 ff.
+     _AEschines_ condemns this vice only when one prostitutes
+     himself for money (in Timarch., 137). _Lysias_, adv. Simon,
+     unhesitatingly speaks to a court about a contract for hire
+     for purposes of pederasty. Compare _AEschin._, l. c., 159,
+     119, where such a contract is formally sued on. Industrial
+     tax on pederastic brothels. (_AEschin._. I, c. R.)
+     _Aristophanes_ alludes to obscenity still more shameful:
+     Equitt., 280 ff.; Vespp., 1274 ff., 1347; Pax., 885; Ranae,
+     1349.]
+
+     [Footnote 249-18: _Valer. Max._, VI, 1, 7, 9 ff. The Lex
+     Julia treats it only as _stuprum_: L. 34, Sec. 1. Digest, 48,
+     5; Paulli Sentt. receptt., II, 26, 13. Permitted later until
+     Philip's time, in consideration of a license-fee. _Aurel.
+     Vict._, Caes., 28. Earliest traces of this vice in the year
+     321 before Christ. (_Suidas_, v. Gaios Laitorios.) Later, it
+     caused much scandal when the great Marcellus accused the
+     aedile Scatinus of making shameful advances to his son.
+     (_Plutarch_, Marcell., 2.)]
+
+     [Footnote 249-19: _Tibull_, I, 4. Even the "severe"
+     _Juvenal_ was not entirely disinclined to pederasty, and
+     _Martial_ does not hesitate to boast of his own pederasty
+     and onanism. (II, 43, XI, 43, 58, 73, XII, 97.)]
+
+     [Footnote 249-20: _Cicero_, ad. Div., VIII, 12, 14.]
+
+     [Footnote 249-21: _Sueton._, Tiber, 43 ff.; Nero, 27 ff.
+     _Tacit._, Ann., VI, 1; Lamprid. Commod., 5, 10 seq.; Heliog.
+     passim. On the _greges exoletorum_, see also _Dio Cass._,
+     LXII, 28; LXIII, 13; _Tacit._, Ann., XV, 37. _Tatian_, ad
+     Graecos, p. 100. Even Trajan, the best of the Roman
+     emperors, held similar ones. (Ael. Spartian, V, Hadr., 2.)
+     Trade in the prostitution of children at the breast.
+     (_Martial_, IX, 9.) The collection of nearly all the obscene
+     passages in the ancient classics elucidated with a shameful
+     knowledge of the subject in the additions to _F. C.
+     Forberg's_ edition of the Hermaphroditus of _Antonius
+     Panormita_, 1824.]
+
+     [Footnote 249-22: How long this moral corruption lasted may
+     be inferred from the glaring contrast between the purity of
+     the Vandals at the time of the migration of nations. Compare
+     _Salvian_, De Gubern. Dei, VII, passim.]
+
+     [Footnote 249-23: In keeping with the vicious counter
+     tendencies described in this section, is the increasing
+     frequency of the rape of children in France. The average
+     number of cases between 1826 and 1830 was 136; between 1841
+     and 1845, 346; between 1856 and 1859, 692. Infanticide also
+     increased between 1826 and 1860, 119 per cent. (_Legoyt_,
+     Stat. comparee, 394.)]
+
+
+SECTION CCL.
+
+INFLUENCE OF THE PROFANATION OF MARRIAGE ON POPULATION.
+
+D. In the preceding paragraphs, we treated of the wild shoots of the
+tree of population. But the roots of the tree are still more directly
+attacked by all those influences which diminish the sacredness of the
+marriage bond. It is obvious how heartless _marriages de
+convenance_,[250-1] inconsiderate divorces and frequent adulteries
+mutually promote one another. And the period of Roman decline also is
+the classic period of this evil. I need only cite the political
+speculation in which Caesar gave his only daughter to the much older
+Pompey, or the case of Octavia, who when pregnant was compelled to marry
+the libertine Antonius.[250-2] Instead of the Lucretias and Virginias of
+older and better times, we now find women of whom it was said: _non
+consulum numero, sed maritorum annos suos computant_.[250-3] In the
+numerous class of young people who live without the prospect of any
+married happiness of their own, we find a multitude of dangerous persons
+who ruin the married happiness of others, especially where marriage has
+been contracted between persons too widely separated by years.
+_Corrumpere et corrumpi saeculum vocatur._ (_Tacitus_).[250-4] It is easy
+to understand how all this must have diminished the desire of men to
+marry. Even Metellus Macedonicus (131 before Christ) had declared
+marriage to be a necessary evil.[250-5] [250-6]
+
+In such ages young girls are kept subject to a convent-like discipline,
+that their reputation may be protected and that they may be able to get
+husbands; but once married they are wont to be all the more lawless. In
+a pure moral atmosphere, precisely the opposite course obtains.[250-7]
+
+And so it has been frequently observed, that among declining nations the
+social differences between the two sexes are first obliterated and
+afterwards even the intellectual differences. The more masculine the
+women become, the more effeminate become the men. It is no good symptom
+when there are almost as many female writers and female rulers as there
+are male. Such was the case, for instance, in the Hellenistic kingdoms,
+and in the age of the Caesars.[250-8] What to-day is called by many the
+emancipation of woman would ultimately end in the dissolution of the
+family, and, if carried out, render poor service to the majority of
+women. If man and woman were placed entirely on the same level, and if
+in the competition between the two sexes nothing but an actual
+superiority should decide, it is to be feared that woman would soon be
+relegated to a condition as hard as that in which she is found among all
+barbarous nations. It is precisely family life and higher civilization
+that have emancipated woman. Those theorizers who, led astray by the
+dark side of higher civilization, preach a community of goods, generally
+contemplate in their simultaneous recommendation of the emancipation of
+woman a more or less developed form of a community of wives. The grounds
+of the two institutions are very similar. The use of property and
+marriage is condemned because there is evidence of so much abuse of
+both. Men despair of making the advantages that accompany them
+accessible to all, and hence would refuse them to every one; they would
+improve the world without asking men to make a sacrifice of their evil
+desires. The result, also, would be about the same in both cases. (Sec.
+81.) So far would prostitution and illegitimacy be from disappearing
+that every woman would be a woman of the town and every child a bastard.
+There would, indeed, be a frightful hinderance under such circumstances
+to the increase of population. The whole world would be, so to speak,
+one vast foundling asylum.[250-9]
+
+But there is another sense to the expression emancipation of woman. It
+should not be ignored that, in fully peopled countries, there is urgent
+need of a certain reform in the social condition of woman. The less the
+probability of marriage for a large part of the young women of a country
+becomes, the more uncertain the refuge which home with its slackened
+bonds offers them for old age, the more readily should the legal or
+traditional barriers which exclude women from so many callings to which
+they are naturally adapted be done away with.[250-10] This is only a
+continuation of the course of things which has led to the abolition of
+the old guardianship of the sex. It may be unavoidable not to go much
+farther sometimes; but such a necessity is a lamentable one.[250-11] The
+best division of labor is that which makes the woman the glory of her
+household, only it is unfortunately frequently impossible.
+
+     [Footnote 250-1: This expression is applicable only in times
+     of higher civilization where individual disposition of self
+     is considered the most essential want. During the middle
+     ages, when the family tie is yet so strong, the contract of
+     marriage was generally formed by the family; but this was
+     not, as a rule, felt a restraint. In France, at the present
+     time, of 1,000 men who marry before their 20th year, 30.8
+     marry women from 35 to 50 years of age, and 4.8 who marry
+     women over 50 years of age. (_Wappaeus_, A. Bevoelkerung.
+     Stat. II, 291.)]
+
+     [Footnote 250-2: _Propertius_ bitterly complains of the
+     corruption prevalent in love affairs in his time. (III, 12.)
+     In the Hellenic world, also, among the successors of
+     Alexander the Great, there was a revoltingly large number of
+     _marriages de convenance_, so that even the old Seleucos
+     took to wife the grand-daughter of his competitor Antegonos,
+     Lysimachos the daughter of Ptolemy etc. _Dante's_ lament
+     over the anxiety of fathers to whom daughters are born
+     concerning their future dowry: Paradiso, XV, 103. Florentine
+     law of 1509, against large dowries: _Machiavelli_, Lett.
+     fam., 60. In the United States, marriage dowries are of
+     little importance. (_Graf Goertz_, Reise um die Welt, 116.)
+
+     [Footnote 250-3: _Seneca_, de Benef., III, 16--a frightful
+     chapter. Also, I, 9. _Juvenal_ speaks of ladies who in five
+     years had married eight men (IV, 229, seq.), and _Jerome_
+     saw a woman buried by her 23d husband, who himself had had
+     21 wives, one after another, (ad. Ageruch, I, 908.) The
+     first instance of a formal divorce _diffareatio_ is said to
+     have occurred in the year 523, after the building of the
+     city (_Gellius_, IV, 3), a clear proof that the Romulian
+     description of marriage, as koinonia hapanton hieron kai
+     chrematon (Dionys., A. R. II., 25), was long a true one. The
+     old manus-marriage certainly supposes great confidence of
+     the wife and her parents in the fidelity of the husband,
+     while the marriage law of the time of the emperors relating
+     to estates never lost sight of the possibility of divorce.
+     The facility of obtaining amicable divorces (the most
+     dangerous of all) appears from the gifts allowed, _divorti
+     causa_, in L., 11, 12, 13, 60, 61, 62; Dig., XXIV, 1. In
+     Greece, we meet with the characteristic contrast, that, in
+     earlier times, wives were bought, but that later, large
+     dowries had to be insured to them or the risk of divorce at
+     pleasure be assumed. (_Hermann_, Privataltherthuemer, Sec. 30.)
+     How women themselves married again, even on the day of their
+     divorce, see _Demosth._, adv. Onet., 873; adv. Eubul., 1311.
+     On Palestine, see Gospel of _John_, 4, 17 ff. Concerning
+     present Egypt, where prostitution is carried on especially
+     by cast-off wives, see _Wachenhusen_, vom aegypt, armen Mann,
+     II, 139. During the great French revolution, divorces were
+     so easily obtained that but little was wanted to make a
+     community of wives. (Vierzig Buecher, IV, 205; Handbuch des
+     franzoesischen Civilrechts, Sec. 450.) The more divorces there
+     are in a Prussian province, the more illegitimate births
+     also. Thus, for instance, Brandenburg, 1860-64, had 1,721
+     divorces, and one illegitimate birth for every 7.8
+     legitimate (max.). Rhenish Prussia, four divorces and one
+     illegitimate birth for every 25.4 legitimate (min.). In the
+     cities of Saxony, it is estimated there are, for every
+     10,000 inhabitants, 36 divorced persons; in the country,
+     only 19 (_Haushofer_, Statistik, 487 seq.); in Wuerttemberg,
+     20; Thuringia, 33; all Prussia, 19; Berlin, 83. (_Schwabe_,
+     Volkszaehlung von, 1867 p. XLV.)]
+
+     [Footnote 250-4: _Cicero_, in his speech for Cluentius,
+     gives us a picture of the depth to which families in his
+     time had fallen through avarice, lust, etc., which it makes
+     one shudder to contemplate. Moreover, of the numerous
+     families mentioned in _Drumann's_ history, there are
+     exceedingly few which, either actively or passively had not
+     had some share in some odious scandal. Concerning even Cato,
+     see _Plutarch_, Cato, II, 25. Messalina's systematic
+     patronage of adultery: _Dio Cass._, LX, 18.]
+
+     [Footnote 250-5: _Gellius_, I, 6. In Greece, the same
+     symptoms appear clearly enough, even in _Aristophanes_:
+     compare especially his Thesmophoriazusae. The frequently
+     cited woman-hatred of Euripides is part and parcel hereof;
+     also the fact that since Socrates' time, the most celebrated
+     Grecian scholars lived in celibacy. (_Athen._, XIII, 6 seq.;
+     _Plin._, H. N., XXXV, 10.) Compare Theophrast in Hieronym.
+     adv. Jovin, I, 47, and _Antipater_, in _Stobaeus_, Serm.,
+     LXVII, 25.]
+
+     [Footnote 250-6: In modern Italy, the monstrosity known as
+     cicisbeism had not assumed any great proportions before the
+     17th century, in consequence of the bad custom which
+     permitted no woman to appear in public without such
+     attendant, and ridiculed the husband for accompanying his
+     own. In the time of the republics, the conventual seclusion
+     of girls and the duenna system were not yet customary.
+     (_Sismondi_, Gesch. der Italiennischen Republiken, XVI, 251,
+     ff., 498, ff.) Adultery punished with death in many cities
+     of medieval Italy: for instance, the Jus Municipale
+     Vicentinum, 135. Concerning the Spanish cicisbeos, who
+     evince as much shamelessness as fidelity, see _Townsend_,
+     Journey, II, 142, ff. _Bourgoing_, Tableau, II, 308, ff. The
+     so-called _cortejos_ are generally young clerics or young
+     officers.]
+
+     [Footnote 250-7: A young American woman says to Mrs. Butler:
+     "We enjoy ourselves before marriage, but in your country
+     girls marry to obtain a greater degree of freedom, and
+     indulge in the pleasures and dissipations of society." While
+     the young girls are always to be met with in the streets,
+     wives are to be found always in the kitchen. (_Mrs. Butler_,
+     American Journal, II, 183.) Compare _Beaumont_, Marie ou
+     l'Esclavage aux Etats-Unis, I, 25 ff. 349. The opposite
+     extreme in Italy, where, therefore, too favorable an
+     inference should not be drawn from the small number of
+     illegitimate births. Morally considered, one act of adultery
+     outweighs 10 _stupra!_ Even in the age of the renaissance,
+     the free intercourse of young girls in England and the
+     Netherlands made a favorable impression on Italian
+     travelers; _Bandello_, Nov., II, 42; IV, 27.
+
+     Similar contrast in antiquity between Ionian and Dorian
+     women. Wives were more rigidly excluded from entering
+     gymnasia for males in Sparta than young girls. (_Pausan._,
+     V, 6, 5; VI, 20, 6; _Plato_, De Legg., VII, 805; _Xenoph._,
+     De Rep. Laced., I.) Compare _K. O. Mueller_, Dorier, II, 276
+     ff.]
+
+     [Footnote 250-8: _Plato_, De Legg., VI, 774, and
+     _Aristotle_, Polit., II, 6; V, 9, 6; VI, 2, 12, complain of
+     the too great supremacy of women in their day. Colossal land
+     ownership of Lacedemonian women. (_Aristot._, Polit., II, 6,
+     11.) And yet even Plato advises that women be allowed to
+     participate in the gymnasia, in the assemblies and to hold
+     public office, etc. They were indeed different from men, but
+     not as regards those qualities which fit for ruling. (De
+     Rep., V, 451 ff.; De Legg., VI, 780; VII, 806.) That the
+     Roman courtesans wore the male toga and were therefore
+     called togatae. _Horat._, Serm., I, 2, 63 ff., 80 ff.;
+     _Martial_, VI, 64, recalls certain caricatures of very
+     recent times; for instance, Bakunius' demand that both sexes
+     should wear the same kind of dress. (_R. Meyer_,
+     Emancipationskampf des 4 Standes, I, 43.) Later, concerning
+     wifish men, see _Apuleius_, Metam., VIII; _Salvian_, Gubern.
+     Dei VII. We are led to a related subject in noticing that in
+     England of persons charged with serious crimes there were 10
+     women to 30 men; in Russia only 10 women to 81 men. (_v.
+     Oettingen_, 758.) As _Riehl_ remarks, Famille 15, the
+     undeniable _consensus gentium_, that the costume of men
+     should differ from that of women, is an equally undeniable
+     protest against this species of emancipation. I would add
+     that, as among ourselves in the earliest years of childhood,
+     so also among lowly civilized peoples, the difference in
+     costumes of the sexes is least apparent. (_Tacit._, Germ.,
+     17; Plan. Carpin., Voyage en Tartarie; Add. ed., Bergeron,
+     art. 2.) Even the physical difference is smaller there
+     (_Waitz_, Anthropologie der Naturvoelker, I, 76), especially
+     in the size of the pelvis. (_Peschel_, Voelkerkunde, 81,
+     86.)]
+
+     [Footnote 250-9: Even _Plato_ complains of the unnatural
+     relations of the sexes to one another, and would instead
+     have the unions of couples of short duration introduced, and
+     complete community of children under the direction of the
+     state. (De Rep., V.) The Stoic Chrysippos approves the
+     procreation of children by parent and child, brother and
+     sister. (_Diog. Laert._, VII. 188.) In the time of Epictetus
+     (Fr. 53, ed. Duebner), the Roman women liked to read Plato's
+     republic, because in his community of wives they found an
+     excuse for their own course. The Anabaptists appealed to
+     Christ's saying that he who would not lose what he loved
+     could not be his disciple. Thus the women should sacrifice
+     their honor and suffer shame for Christ's sake. Publicans
+     and prostitutes were fitter for heaven than honorable wives,
+     etc. (_Hagen_, Deutschlands Verhaeltnisse im
+     Reformationszeitalter, III, 221.)
+
+     In our days, the theory inimical to the family is based
+     rather on misconceived ideas of freedom and science. The
+     Christian mortification of the flesh is, it is said,
+     one-sidedness; and that the flesh no less than the spirit is
+     of God. Hence it is that Saint Simonism would reconcile the
+     two, and "emancipate" the flesh. (_Enfantin_, Economie
+     politique, 2d ed., 1832.) _Fourier_, in his Harmonie, allows
+     each woman to have one _epoux_ and two children by him; one
+     _geniteur_ and one child by him; one _favori_ and as many
+     _amants_ with no legal rights as she wishes. His "harmonic"
+     world he would protect against over-population by four
+     organic measures: the _regime gastrosophique_, the object of
+     which is by first-class food to oppose fecundity; _la vigeur
+     des femmes_, because sickly women have most children;
+     _l'exercise integral_, since by the exercise of all the
+     organs of the body the organs of generation are latest
+     developed; lastly the _moeurs phanerogames_, the minuter
+     description of which _Fourier's_ disciples omitted in the
+     later editions. (_N. Monde_, 377, ff.) _Fourier_ was of
+     opinion that only one-eighth of the mothers should be
+     occupied with the bringing up of the children, and that a
+     child's own parents were least adapted to bringing it up, as
+     is proved by the natural aversion of the child to mind the
+     advice or obey the injunctions of its own parents. (186 ff.)
+     If all were left free to choose their employment, two-thirds
+     of all men would devote themselves to the sciences, and
+     one-third of all women; the fine arts would be cultivated by
+     one-third of the men and two-thirds of the women. In
+     agriculture, two-thirds of the men and one-third of the
+     women would take to large farming, and to small farming
+     one-third of the men and two-thirds of the women.
+
+     The Communistic Journal, L'Humanitaire, is in favor of a
+     community of wives proper, while _Cabet_ leaves the question
+     an open one. Compare, besides, _Godwin_ on Political
+     Justice, 1793, VIII, ch. 8. In beautiful contrast to this
+     are _J. G. Fichte's_ (compare, _supra_, Sec. 2) views on
+     marriage and the family in the appendix to his Naturrecht,
+     although he, too, would largely facilitate divorce.]
+
+     [Footnote 250-10: _J. Bentham_, Traite de Legislation, II,
+     237, seq., says that it is scarcely decent for men to engage
+     in the toy trade, the millinery business, in the making of
+     ladies' dresses, shoes, etc. Compare _M. Wolstoncraft_,
+     Rettung der Rechte des Weibes, translated by Salzmann, 1793;
+     _v. Hippel_, ueber die buergerliche Verbesserung der Weiber,
+     1792. Rich in remarks on the woman question are _K. Marlo_,
+     System der Weltoekonomie, and _Schaeffle_, Kapitalismus und
+     Socialismus, 444 ff., who, for the most part, supports him.
+     Compare _Josephine Butler_, Woman's Work and Woman's
+     Culture: a Series of Essays, 1792; _Leroy-Beaulieu_, Le
+     Travail des Femmes au. 19, siecle, 1873. Between 1867 and
+     1871, the number of men dependent on their own action in
+     Berlin, increased 22.9 per cent.; of women dependent on
+     their own labor, 36.6 per cent. (_Schwabe_, Volkszaehlung,
+     1871, 84.)]
+
+     [Footnote 250-11: _J. S. Mill_, on the other hand, rejoices
+     over the great economic independence of women, and expects
+     from it especially a decrease in the number of thoughtless
+     marriages. (Principles, IV, ch. 7, 3. Compare by the same
+     author, The Subjection of Women, 1869.) I need only mention
+     the dramatic art and the factory proletariat, where the
+     independence in question obtains and indeed with very
+     different results! It is very characteristic of the time,
+     that _Homer_(Il., XII, 433) considered the spinning for
+     wages as despicable, while _Socrates_, in the mournful
+     period following the Peloponnesian war, earnestly counsels
+     that free women without fortune should employ themselves
+     with home industries. (_Xenoph._, Memor., II, 7.) It is in
+     keeping with this that during the time of scarcity after the
+     Peloponnesian war even female citizens hired themselves out
+     as nurses. (_Demosth._, adv. Eubul., 1309, 1313.) The
+     frequency of such engagements has, in many respects, causes
+     related to these which produce a frequency of illegitimate
+     births.]
+
+
+SECTION CCLI.
+
+POLYANDRY.--EXPOSURE OF CHILDREN.
+
+In some of the countries of farther Asia, the immoral tendencies counter
+to over-population which with us take the direction of illegitimate
+births and acts of adultery, assume the guise of formal institutions
+established by law. I need only cite the polyandry of East India, Thibet
+and other mountainous regions of Asia, which is indeed modified somewhat
+by the fact that, as a rule, only several brothers have one wife in
+common.[251-1]
+
+That unnatural institution is, in many localities, based on this, that a
+great many of the newly born female children are killed or at least sold
+in foreign parts after they have grown.[251-2] In addition to this, we
+have the very great encouragement given to celibacy in the Himalayas, so
+that only monks can attain to a higher education and to the higher
+honors.[251-3] In many parts of the East Indies, we find a legally
+recognized community of wives, which is but slightly modified[251-4] by
+the difference of caste; and almost everywhere, that looseness of
+general morality which usually characterizes declining nations.[251-5]
+
+China is, as a rule, considered the classic land of child-exposure. And
+a writer of the country, who is considered one of the principal
+authorities against the exposure of children, actually claims that it is
+reprehensible only when one has property enough to support them. The
+murder of daughters he especially reprobates as "a struggle against the
+harmony of nature; the more a father performs this act, the more
+daughters are born to him; and no one has ever heard that the birth of
+sons was promoted in this way."[251-6] Moreover, the exposure of
+children in the later periods of antiquity played an important part. In
+Athens, the right of a father to expose his child was recognized by law.
+Even a Socrates accounts it one of the occasional duties of midwives to
+expose children.[251-7] Considered from a moral point of view, Aristotle
+has nothing to say against abortion.[251-8] In Rome, a very ancient law,
+which was still in existence in 475 before Christ, made it the duty of
+every citizen to have and to bring up children.[251-9] It was very
+different in the time of the emperors,[251-10] and until Christianity,
+made the religion of the state, caused a legal prohibition against the
+exposure of children to be passed.[251-11] [251-12]
+
+     [Footnote 251-1: _Turner_, Embassy to Thibet, II, 349, tells
+     of five brothers who lived satisfied thus under one roof.
+     (_Jacquemont_, Voyage en Inde, 402.) In Ladakh, all the
+     children are ascribed to the eldest brother, to whom also
+     the property belongs; all the younger brothers are his
+     servants and may be expelled the house by him. (_Neumann_,
+     Ausland, 1866, No. 16 seq.) In Bissahir, on the other hand,
+     the eldest child belongs to the eldest brother, the second
+     to the second, etc. Here the wife is bought by all the
+     brothers together and treated precisely as a slave.
+     (_Ritter_, Erdkunde, III, 752.) In Bhutan, the men move into
+     the house of the woman, who is frequently old, and who
+     before marriage, and up to her 25th or 30th year, has
+     generally lived very lawlessly. (_Ritter_, IV, 195.) Among
+     the Garos, the wife may leave the man at pleasure and not
+     lose her property or her children, while her husband by her
+     rejection of him loses both. (_Ritter_, V, 403.) Even in
+     Mahabarata, polyandry occurs among the Northern Indians.
+     Similarly, among the Indo-Germanic tribes in Middle Asia
+     (_Ritter_, VII, 608); according to Chinese sources in
+     ancient Tokharestan (_Ritter_, VII, 699), and among the
+     Sabaeans (_Strabo_, XVI, 768). Even in ancient Sparta.
+     (_Polyb._, XII, 6.)]
+
+     [Footnote 251-2: In lower Nerbudda, the poisoning of new
+     born female children was very common about the beginning of
+     this century. In Kutch, people prefer to marry persons from
+     foreign countries, and murder their own daughters.
+     (_Ritter_, VI, 623, 1054.) Similarly, even in the Indian
+     Arcadia, the land of the Nilgherrys (V, 1035 seq.). In
+     Cashmir, all the beautiful girls are sold in the Punjab and
+     in India from their eighth year upwards. (VII, 78.)
+     Similarly in the Caucasus and in the mountainous region of
+     Badakschan. (VII, 798 ff.) _v. Haxthausen_, Transkaukasia,
+     1856, I, ch. 1, tells how the Russians captured a vessel
+     carrying Circassian slaves into Turkey. They left them their
+     choice, to go back home, marry in Russia, or to continue
+     their journey to Constantinople. They all unhesitatingly
+     chose the last! There is an echo of something analogous even
+     in the Semiramis saga.]
+
+     [Footnote 251-3: In many parts of Thibet and Rhutan the
+     fourth son, and in some places the half of the young men,
+     become lamas. (_Ritter_, Erdkunde, IV, 149, 206.)]
+
+     [Footnote 251-4: Among the Garos and Nairs, as well as among
+     the Cossyahs, in Northwestern Farther India, the children
+     have no father, but consider their brothers on the mother's
+     side their nearest male relatives. Inheritance also takes
+     this direction. (_J. Mill_, History of British India, I, 395
+     seq. _Buchanan_, Journey through Mysore, II, 411 seq.
+     _Ritter_, V, 390 seq., 753.) Similarly, among the Lycians:
+     _Herodot._, I, 173. Whether the peculiar custom of many old
+     German people, of which _Tacitus_, Germ., 20, makes mention,
+     does not point to an original community of wives, _quaere_.]
+
+     [Footnote 251-5: Even the most debauched European is a
+     pattern of modesty compared with the Indians themselves.
+     (Edinb. Rev., XX, 484.) On the frightful development of
+     unnatural as well as natural crimes against chastity among
+     the Chinese, see _G. Schlegel_, in the memoirs of the
+     Genoostchap van Kunsten en Wetenschappen in Batavia, Band.
+     XXXII, and Ausland, Januar., 1868.]
+
+     [Footnote 251-6: According to _J. Bowring's_ official
+     report: Athenaeum, 17 Nov., 1855. That the exposure of
+     children is allowed by law in China, and that many poor
+     couples marry with the intention of exposing them, is
+     unquestionable. But the reports concerning the extent of the
+     evil differ materially. The Jesuits estimated that in Pekin
+     alone from 2,000 to 3,000 children were exposed in the
+     streets. To this must be added the many thrown into the
+     water or smothered in a bath-tub immediately after birth.
+     Compare Lettres edif., XVI, 394 ff.; _Barrow_, 166 ff. The
+     street-foundlings were picked up by the police and placed in
+     wagons, living and dead together, and cast into one pit in a
+     part of the city. Other accounts are much more favorable:
+     thus that of _Ellis_, Voyage, ch. 7, who was there in 1816,
+     and of _Timkowski_, Reise, II, 359. Compare the quotations
+     in _Klemm_, Kulturgeschichte, VI, 212.]
+
+     [Footnote 251-7: _Petit_, Legg. Att., 144. Compare _Becker_,
+     Charicles, I, 21 ff.; _Plato_, Theaet., 150 ff. In Plato's
+     state, a system of exposure on a large scale is one of the
+     most essential foundations of the whole. (De Re., V, 461.)]
+
+     [Footnote 251-8: Aristotle advised that males should not
+     marry before their 37th year, and that at least after their
+     55th year they should bring no more children into the world.
+     No family was allowed to have more than a definite number of
+     children. (Polit., VII, 14.) There are even yet pictures of
+     Venus trampling an embryo under foot. (_R. O. Mueller_,
+     Denkmaeler der alten Kunst, II, No. 265.) Compare, _per
+     contra_, _Stobaeus_, Serm., LXXIV, 91; LXXI, 15.]
+
+     [Footnote 251-9: _Dionys. Hal._, Ant. Rom., IX, 22.]
+
+     [Footnote 251-10: _Plutarch_, De Amore Prol., 2, Minut.
+     Felix Octav., 30. That it seemed entirely right, when
+     persons had "enough" children, to put the others to death,
+     is proved by the catastrophe in _Longus'_ idyllic romance,
+     IV, 24, 35. Even men like _Seneca_ (Contr., IX, 26; X, 33)
+     and _Tacitus_ (Ann., III, 25 ff.) were actually in favor of
+     the right of exposing children. On the frequency of
+     artificial abortion, see _Juvenal_, VI, 594. Semi-castration
+     of young slaves for libidinous women who did not want to
+     bear children. (_Juvenal_, VI, 371 ff.; _Martial_, I, V67.)]
+
+     [Footnote 251-11: Under Constantine the Great, 315 after
+     Christ. _Theod._, Cod., XI, 27, 1]
+
+     [Footnote 251-12: It is an unfortunate fact that many modern
+     nations approximate more closely to this abomination of the
+     ancients than is generally supposed. The infrequency of
+     illegitimate children in Romanic southern nations is offset
+     by the enormous number of exposures almost after the manner
+     of the Chinese. See the tables in _v. Oettingen_, Anhang,
+     95. In Milan, between 1780 and 1789, there were, in the
+     aggregate, 9,954 children abandoned; between 1840 and 1849,
+     39,436. (_v. Oettingen_, 587.) On abortion in North America,
+     and the numberless bold advertisements of doctors there that
+     they are ready to remove all impediments to menstruation
+     "from whatever cause," see _v. Oettingen_, 523, and Allg.
+     Zeitung, 1867, No. 309. It would be a very mournful sign of
+     the times if the work: Principles of Social Science, or
+     physical, sexual and natural Religion; an Exposition of the
+     real Cause and Cure of the three great Evils of Society,
+     Pauperism, Prostitution and Celibacy, by a Doctor of
+     Medicine (Berlin, 1871), were really a translation of an
+     alleged English original. It is throughout atheistic,
+     materialistic and immoral, concerned only with one
+     fundamental idea: to instruct women how to prevent
+     conception!]
+
+
+SECTION CCLII.
+
+POSITIVE DECREASE OF POPULATION.
+
+The way of vice is steep. Where the aversion to the sacrifices and to
+the limitations of liberty imposed by marriage, has permeated the great
+body of the people; where, indeed, the immoral tendencies counter to
+population described in Sec. 249 ff. have been largely developed, they very
+readily cease to be mere checks, and population may positively decline.
+While in the case of fresh and vigorous nations, the mere loss of men
+caused by wars, pestilence, etc., is very easily made up;[252-1] that
+reproductive power may here be too much enfeebled to fill up the gap
+again. It has happened more than once that the decline of a period has
+been frightfully promoted by great plagues, which have swept away in
+whole masses the remnants of a former and better generation.[252-2] The
+return of the relatively small population of its childhood to a nation
+in its senility cannot be ascribed exclusively to a decrease in its
+means of subsistence and to a less advantageous distribution of
+them.[252-3] [252-4] The depopulation, however, of Greece and Rome in
+their decline might be hard to understand were it not for the slavery of
+the lower class.[252-5]
+
+     [Footnote 252-1: It is said that the plague which, in 1709
+     and 1710, decimated Prussia and Lithuanian, carried away
+     one-third of the inhabitants, and even one-half of those at
+     Dantzig. While previously the number of marriages annually
+     was, on an average, 6,082, it rose in 1711 to 12,028. In
+     1712 it was 6,267, and sank some years afterwards on account
+     of the decrease in population, to 5,000. (_Suessmilch_,
+     Goettl. Ordnung, I, Tab. 21.) Similar effects of the plague at
+     Marseilles, 1720. (_Messance_, Recherches sur la Population,
+     766.) In Russia, too, it was observed after the devastation
+     produced by the black death in 1347 and the succeeding
+     years, that the population again increased at an
+     extraordinarily rapid rate; and that an unusual number of
+     twins and triplets were born (?). (_Karamsin_, Russ. Gesch.,
+     IV, 230.) Compare _Dalin_ Schwed. Gesch., 11,384;
+     _Montfaucon_, Monuments de la Monarchie Francaise, I, 282.]
+
+     [Footnote 252-2: I would mention the Athenian pestilence
+     during the last years or Pericles; the Roman in the _orbis
+     terrarum_, between 250 and 265 B.C., which is said to have
+     destroyed one-half of the population of Alexandria.
+     (_Gibbon_, Hist. of the Roman Empire, ch. 10.) It also made
+     frightful ravages, intellectually, on the nationality of the
+     Romans. (_Niebuhr._) Thus, in England, the black death
+     contributed very largely to cause the disappearance of the
+     medieval spirit. (_Rogers._) Of great political importance
+     was the pestilence of Bagdad, which, in 1831, carried off
+     2/3 of the inhabitants. All national bonds seemed dissolved,
+     robbers ruled the country; the army of the powerful Doud
+     Pascha was carried off entirely, and his whole political
+     system, constructed after the model of that of Mehemet-Ali,
+     fell into ruin. Compare _Anth. Groves_, Missionary Journal
+     of a Residence at Bagdad, 1832.]
+
+     [Footnote 252-3: Among the Maoris, the number of sterile
+     women is 9 times as great as the average in Europe. Compare
+     Reise der Novara, III, 129.]
+
+     [Footnote 252-4: The decreasing number of English Quakers,
+     among whom, in 1680-89, there occurred 2,598 marriages, and
+     in 1840-49 only 659, finds expression in the unfrequency of
+     marriage, a comparatively small number of women and a small
+     number of children, all in conjunction with a small
+     mortality. (Statist. Journ., 1859, 208 ff.) There is no
+     reason to have recourse here to vice as a cause, and
+     scarcely to physiological reasons for an explanation,
+     because these phenomena are accounted for in great part by
+     the fact that adult males so frequently leave the sect.]
+
+     [Footnote 252-5: In this respect, however, there is a great
+     difference between bondage and slavery. As early a writer as
+     _Polybius_ speaks of the depopulation of Greece. (_Polyb._,
+     II, 55; XXXVII, 4.) He looks for the cause in this, that in
+     every family, for luxury's sake, either no children whatever
+     were wanted, or at most from one to two, that the latter
+     might be left rich. (Exc. Vat., 448.) Very remarkable,
+     _Seneca_, Cons. ad. Marc, 19. Further, _Cicero_, ad. Div.,
+     II, 5. _Strabo_, VII, 501; VIII, 595; IX, 617, 629.
+     _Pausan._, VII, 18; VIII, 7; X, 4; _Dio Chr._, VII, 34, 121;
+     XXXIII, 25. _Plutarch_ claimed that Hellas could, in his
+     time, number scarcely 3,000 hoplites, while in the time of
+     Themistocles, Megalis alone had put as many in the field.
+     (De Defectu Orac., S.) Antium and Tarentum similarly
+     declined under Nero. (_Tacit_., Ann., XIV, 27.) The
+     depopulation even of the capital, which began under
+     Tiberius, is apparent from _Tacit._, Ann., IV, 4, 27.
+     National beauty also declined with the nation's
+     populousness. _AEschines_ saw a great many beautiful youths
+     in Athens (adv. Timarch., 31); _Cotta_, only very few
+     (_Cicero_, de Nat. Deorum, I, 28); _Dio Chrysostomus_,
+     almost none at all (Orat., XXI). On the necessary lowering
+     of the military standard of measure, see _Theod._, Cod.,
+     VII, 13, 3, _Verget_, de Re milit., I, 5. The depopulation
+     of the later _orbis terrarum_ is confirmed by the easiness
+     of the new division of land with the German conquerors.
+     Compare _Gaupp_, Die Germanischen Niederlassungen und
+     Landtheilungen (1845), passim.]
+
+
+
+
+CHAPTER III.
+
+POPULATION-POLICY.
+
+
+SECTION CCLIII.
+
+DENSE POPULATION.--OVER-POPULATION.
+
+The nation's economy attains its full development wherever the greatest
+number of human beings simultaneously find the fullest satisfaction of
+their wants.
+
+A dense population is not only a symptom of the existence of great
+productive forces carried to a high point of utilization;[253-1] but is
+itself a productive force,[253-2] and of the utmost importance as a spur
+and as an auxiliary to the utilization of all other forces. The new is
+always attractive, by reason of its newness; but at the same time, we
+hold to the old too precisely because of its age: and the force of
+inertia would always turn the scales in favor of the latter. This
+inertia, both physical and mental is so general, that perhaps the
+majority of mankind would continue forever satisfied with their
+traditional field of occupation and with their traditional circle of
+food, were it not that an impulse as powerful and universal as the
+sexual and that of the love of children compelled them to extend the
+limits of both. That man might subdue the whole earth it was necessary
+that the Creator should make the tendency of man to multiply his kind
+more powerful than the original production-tendency of his earliest
+home. The unknown far-away deters as much as it attracts.[253-3] It is
+easy to see how the division and combination of labor become uniformly
+easier as population increases in density. Think only of large cities as
+compared with the country.[253-4] "Under-populated"[253-5] countries,
+which might easily support a large number of human beings, and which,
+notwithstanding have for a long period of time had only few inhabitants,
+are on this account abodes of poverty, regions where education and
+progress are unknown. While, therefore, it cannot be questioned that a
+nation under otherwise equal circumstances is more powerful and
+flourishing in proportion as its population embraces a large number of
+vigorous, well-to-do, educated and happy human beings, the last
+mentioned attributes should not be left out of consideration.
+
+The possibility of over-population is contested by a great many
+theorizers (Sec. 243); and, indeed, the complaints on this score are in
+most cases only a baseless pretext of the inertia which feels the
+pressure of the population without being helped and spurred thereby to
+an increase of the means of subsistence. This inertia itself, especially
+when it governs a whole nation, is a fact which cannot be ignored.
+Over-population, as I use the term, exists whenever the disproportion
+between the population and the means of subsistence operates in such
+away that the average portion of the latter which falls to the share of
+each is oppressively small, whether the effect produced thereby
+manifests itself in a surprisingly large mortality, or in the limitation
+of marriages and of the procreation of children carried to the point of
+hardship. Over-population of this kind is, as a rule, curable by
+extending the limits of the field of food, either as a result of the
+advance of civilization at home, or by emigration.
+
+That the whole earth should be incurably over-peopled is an exceedingly
+remote contingency.[253-6] But where, within a smaller circle, by reason
+of the great stupidity or weakness of mankind, or by the too great power
+of circumstances, over-population cannot act as a spur to new activity,
+it is indeed one of the most serious and most dangerous political
+diseases.[253-7] The immoderate competition of workmen involves the
+majority of the nation in misery, not only materially but also morally;
+one of the most dangerous temptations, for the rich to a contempt for
+human kind, for the poor to envy, dishonesty and prostitution. In every
+suffocating crowd, the animal part of man is wont to obtain the victory
+over the intellectual. Precisely the simplest, most universal and most
+necessary relations are most radically and disastrously affected by the
+difficulty or impossibility of contracting marriage, and the sore
+solicitude for the future of one's children.[253-8]
+
+     [Footnote 253-1: A map of Europe, which would show the
+     density of population by the intensity of shade, would be
+     darkest in the vicinity of the lines between Sicily and
+     Scotland, between Paris and Saxony, and grow lighter in
+     proportion to the distance from their point of intersection.
+     Italy is the country with the earliest highly developed
+     national economy of modern times, and England that which
+     possesses the most highly cultivated national economy; as
+     the Rhine is, from the standpoint of civilization, the most
+     important river in Europe. It is remarkable, in this
+     connection, how slowly population increased in all European
+     countries during the 18th century, and how rapidly after the
+     beginning of the 19th, and especially since 1825. According
+     to _Dieterici_ (Berliner Akademie, 16 Mai, 1850), the
+     population increased annually per geographical square mile:
+
+     ===========================================================
+          _In_            |_1700-1800._|_1800-1825._|_1824-1846._
+     ---------------------+------------+-----------+------------
+                          |     BY     |     BY     |    BY
+     France               |      4     |     16     |    32
+     Naples,              |     15     |     18     |    49
+     Piedmont,            |      6     |      8     |    50
+     Lombardy,            |     19     |     40     |    80
+     England and Wales,   |     16     |     42     |   136
+     Scotland,            |      3     |     16     |    34
+     Ireland,             |     17     |     80     |    77
+     Holland,             |     13     |     14     |    95
+     Belgium,             |     15     |     44     |   136
+     Prussia,             |      7     |     17     |    68
+     Hanover,             |      6     |     12     |    32
+     Wuerttemberg,         |     17     |     12     |    56
+     Bohemia,             |     16     |     27     |    73
+     ===========================================================]
+
+     [Footnote 253-2: "The useful rearing of children the most
+     productive of all outlay." (_Roesler._)]
+
+     [Footnote 253-3: Compare _J. Harrington_ (ob. 1677),
+     Prerogative of a popular Government, I, ch. II; _Sir J.
+     Stewart_, Principles, I, ch. 18; _Malthus_, Principle of
+     Population, IV, ch. 1; _McCulloch_ very happily shows how
+     seldom those who can live comfortably without it are
+     extraordinarily active. The Malthusian law prevents this
+     ever becoming the condition of the majority. Precisely
+     during those years that man is most capable of labor, there
+     is a prospect of a great increase of outlay, in case one
+     does not remain single, which would inevitably degrade every
+     one, a few over-rich excepted, who had not taken care to
+     provide for a corresponding increase of income. Were it not
+     for this, human progress would become slower and slower, for
+     the reason that the _dura necessitas_ would be felt less and
+     less.]
+
+     [Footnote 253-4: According to _Purves_, Principles of
+     Population, 1818, 456, there were, in England (London not
+     included):
+
+     Column Head Key A: _In the seven most densely populated counties._
+                     B: _In the seven counties of average population.
+                     C: _In the five most sparsely populated counties.
+
+                                 |     A     |    B    |    C
+     ----------------------------+-----------+---------+---------
+     Inhabitants per             |           |         |
+        geographical sq. mile,   |  4,904    |  2,229  |  1,061
+     One man with L60 income     |           |         |
+       in every                  |34 inhab'ts|     37  |     77
+     One man with L200 income    |           |         |
+       in every                  |  193  "   |    199  |    472
+     Aggregate of all incomes    |           |         |
+       over L200 per square mile,| L25,118   | L12,676 | L2,441
+     ----------------------------+-----------+---------+---------
+
+     Compare _Rau_, Lehrbuch, II, Sec. 13. Something analogous has
+     frequently been observed as to taxation capacity. Thus, for
+     instance, the Hessian provinces paid in direct taxation and
+     taxation on wines, liquors, etc.; and the density of the
+     population was in the ratio--
+
+          In Rhenish Hessen,   100  100.
+          In Starkenburg,       65   64.
+          In Upper Hessen,      64   59.
+
+     (_Rau_, Lehrbuch, III, Sec. 280.) In many European countries,
+     the population has for a long period of time, and in a
+     comfortable way, increased most rapidly where it has been
+     densest. Thus, for instance, the kingdom of Saxony was, in
+     1837, the most densely populated of all the monarchical
+     states of Germany (6,076 inhabitants per square mile),
+     Hanover (2,416) and Mecklenburg-Schwerin (2,004) were among
+     the most sparsely peopled. And yet the annual increase of
+     population between 1837 and 1858 was greatest in Saxony
+     (1.36 per cent.) while Hanover (0.44) and
+     Mecklenburg-Schwerin (0.59) stood very low in this respect.
+     In very thinly populated countries, nature permits even the
+     civilized man to deteriorate: thus the French in Canada, the
+     Spaniard in the valley of the La Plata.]
+
+     [Footnote 253-5: This excellent expression seems to have
+     been first used by _Gerstner_, Grundlehren der
+     Staatsverwaltung, 1864, II, 1, 176 ff. It must indeed be
+     distinguished from a rapidly growing, but for the time
+     being, a sparsely settled country. A nation with an equal
+     population on a larger surface is, frequently in the
+     immediate present weaker than another in which the
+     population is more dense; but it has the advantage of a
+     greater possibility of growth in the future. Think of the
+     electorates of Saxe and of Brandenburg in the sixteenth
+     century. Just as _Thaer_, Landwirthschaftliche Gewerbelehre,
+     Sec. 149, advises that a mere annuitant should, values being
+     the same, rather purchase a smaller fertile estate; a very
+     able husbandman the reverse.]
+
+     [Footnote 253-6: We need only call to mind such facts as for
+     instance that the United States wealth of coal is 22 times
+     as great as that of Great Britain. (_Rogers_, The Coal
+     Formation and a Description of the Coal Fields of North
+     America and Great Britain, 1858.) In addition to this, only
+     about 16 per cent. of the combustible material is really
+     used in the way furnaces are now generally filled, only 10
+     per cent. in foundry furnaces, and from 14 to 15 per cent.
+     in the transportation of passengers on railways. The Falls
+     of Niagara afford a water-power equal to 2/3 of all the
+     steam engines which existed, a short time since, in the
+     whole world. (_E. Hermann_, Principien der Wirthschaft,
+     1873, p. 49, 153, 243.) But that single families, houses,
+     branches of business, etc. may be over-peopled, and the
+     impoverishing disproportion between numbers and the means of
+     subsistence not be susceptible of immediate removal by the
+     unaided power of the crowded circle, cannot be questioned.]
+
+     [Footnote 253-7: _Aristotle_ had recognized the possibility
+     of over-population. (Polit., II, 4, 3, 7, 4; VII, 4, 5; VII,
+     14.) _Schmitthenner_, Staatswisensschaften, I, distinguishes
+     between relative and absolute over-population: the former is
+     remediable by intellectual and especially by political
+     development, while the latter borders on the extreme
+     physical and possible limits of the means of subsistence.
+     _W. Thornton_, Over-population and its Remedy, 1849, 9,
+     considers a country in English circumstances over-populated
+     when a man between twenty and seventy years of age is not in
+     a condition to support, by means of his wages, 1-1/4 persons
+     in need of assistance (children under 10, women over 60, and
+     men over 70 years of age).]
+
+     [Footnote 253-8: Thus, for instance, in war, one million of
+     peasants are infinitely more powerful, especially in case of
+     a protracted defensive war, than two millions of
+     proletarians. Alaric's saying: "thick-growing grass is most
+     easily mowed."]
+
+
+SECTION CCLIV.
+
+THE IDEAL OF POPULATION.
+
+Hence it was not an erroneous policy that most governments have sought
+to promote the increase of population in undeveloped nations. So far as
+the influence of the acts of government can reach, such a course must
+tend to the earlier maturity of a people's economy. Much more
+questionable are positive provisions by government intended to hinder
+the further increase of population in a country already supposed to be
+fully peopled; if for no other reason, because even the deepest, most
+varied and extensive knowledge can scarcely ever predict with certainty
+that no further extension of the field of food is possible under the
+spur of momentary over-population; and also because questions of
+population reach so far into the life and tenderest feelings of the
+individual that a government which has regard for the personal freedom
+of its subjects, instead of promoting or hindering marriage, emigration
+etc. by police regulations, cannot but limit itself to a statistical
+knowledge and legislative regulation of these relations.[254-1] [254-2]
+
+Whether the population of a country increase in a well-to-do or
+proletarian manner; whether, therefore, the state should rejoice or
+lament over such increase, may generally be inferred with some certainty
+from the other conditions of the country's economy, especially from the
+height of the rate of wages and from the consumption of the nation (Sec.
+230). Thus, for instance, the population of England, between 1815 and
+1847, increased 47 per cent.; but during the same period the value of
+its exports increased 63 per cent.; the tonnage of its merchant marine,
+55 per cent.; the amount yielded by the tax on legacies, and therefore
+moveable property, by 93 per cent.; the value of immoveable property by
+78 per cent. Wherever in agriculture the ancient system of triennial
+rotation (_Dreifelder-system_ = _three-field system_) has been exchanged
+for the so-called English system, not only is a greater number of men
+supported, but, as a rule, each is more abundantly provided for.[254-3]
+The construction of new houses is an especially good symptom, because a
+habitation is a want which governs many others, and which, at the same
+time, may be much curtailed in case of need. Only, there should be no
+thoughtless building speculations, the existence or absence of which may
+readily be inferred from the ratio between the rent of houses and the
+rate of interest usual in the country. In England and Wales there was,
+in 1801, one house to every 5.7 inhabitants; in 1821, to every 5.8; in
+1841, to every 5.4; in 1861, to every 5.39; in 1871, to every
+5.35.[254-4]
+
+The taking of the census at regular intervals in accordance with the
+principles of modern science, and with the apparatus of modern art, is
+one of the chief means to enable us to form a correct judgment of the
+health of the national life and of the goodness of the state.[254-5]
+
+     [Footnote 254-1: Compare _R. Mohl_, Polizeiwissenschaft, I,
+     Sec. 15.]
+
+     [Footnote 254-2: There may be observed a regular ebb and
+     flow in the opinions of theorizers on this subject. During
+     the latter, great enthusiasm is manifested over the increase
+     of population, which is considered an unqualified benefit;
+     later, over-population gives rise to uneasiness. Not many
+     had as much insight as Henry IV.: _la force et la richesse
+     des rois consistent dans le nombre et dans l'opulence des
+     sujets_. (Edict., in _Wolowski_ in the Memoires de l'Acad.
+     des Sciences morales et politiques, 1855.) Thus, for
+     instance, _Luther_, in his sermons on the married state,
+     advises all young men to marry at 20, and all young women at
+     from 15 to 18 years of age. The person who fails to marry
+     because he cannot support a family has no real confidence in
+     God. God will not allow those who obey his command to want
+     the necessaries of life. Werke by _Irmischer_, XX, 77 ff. In
+     England, great dread of depopulation under the first two
+     Tudors: 4 Henry VII., c. 19; 3 Henry VIII., c. 8. _J.
+     Bodinus_, De Rep., VI, is charmed with the Lex Julia et
+     Papia Poppaea. Its repeal was immediately followed by the
+     greatest looseness of morals and by depopulation.
+
+     On the other hand, a great dread of over-population
+     prevailed among English political economists at the end of
+     the sixteenth and the beginning of the seventeenth century.
+     They recommended their colonial projects by saying that they
+     desired to avert this danger. Thus, for instance, _Raleigh_,
+     History of the World, I, ch. 4; _Bacon_, Sermones fid., 15,
+     33, and his essay, De Colonies in Hiberniam deducendis.
+     Compare _Roscher_, Zur Geschichte der englischen
+     Volkswirthschaftslehre, 24, 26, 31, 34, 42. Similarly, at
+     the end of the fifteenth century, in highly developed Italy,
+     which had become stationary. According to _F. Patricius_ (De
+     Inst. Republ., VI, 4; VII, 12): _incolarum multitudo
+     periculosa est in omni populo_. Since _Colbert's_ time, the
+     opposite opinion has become the prevailing one. The densest
+     population had been observed in the wealthiest and
+     relatively the most powerful countries, and people thought
+     they had here sufficient data for a wide generalization. The
+     thought of military conscription by degrees obtained weight
+     in this connection. Thus, _Saavedra Faxardo_, Idea Principis
+     christiano-politici (1649), Symb. 66; _De la Court_,
+     Aanwysing (1699), I, 9. _Sir W. Temple_, says that the
+     fundamental cause of all commerce and wealth lies in a dense
+     population, which compels men to the practice of industry
+     and frugality. (Works, I, 162 ff., 171, III, 2.) _Imperii
+     potentia ex civium numero astimanda est._ (_Spinoza_, Tract,
+     politicus, VII, 18.)
+
+     Thus _Petty_ says that 1,000 acres which can support 1,000
+     men are better than 10,000 which do the same thing. He would
+     give Scotland and Ireland up entirely, and have the
+     inhabitants settle in England. In this way all combination
+     for common purposes would be facilitated. (Several Essays,
+     107 seq., 147 ff.) Peter the Great is said to have
+     entertained a similar view: Oeuvres de Frederic le Grand,
+     II, 23. More moderate is _Child_, Discourse of Trade, 298,
+     and still more so in 368 ff.; _Locke_, Works, I, 73 ff.; II,
+     3, 6, 191. In Germany, _v. Seckendorff_ advises that great
+     establishments for children should be erected, in which
+     orphans and even the children of poor parents should be
+     brought up at the expense of the state, simply with the
+     object of increasing the number of healthy men. (Teutscher
+     Fuerstenstaat, ed. 1678, 203, Add. 179.) _Becher_, Polit.
+     Discours, 21, would have murderers punished because they
+     detract from population, although he elsewhere in his
+     definition of a city, "a nourishing populous community," is
+     no blind enthusiast over-population. According to _v.
+     Horneck_; Oesterreich ueber Alles, 1684, 29 ff., the third
+     fundamental rule of public economy is the greatest possible
+     increase and employment of men. _Vera regni potestas in
+     hominem numero consistit; ubi enim sunt homines, ibi
+     substantiae et vires._ (_Leibnitz_, ed., Dutens, IV, 2, 502.)
+     According to _Vauban_, Dime royale, 150, Daire, no child can
+     be born of a subject by which the king is not a gainer.
+     Compare 46,145. Numbers of People the greatest riches.
+     (_Law_, Trade and Money, 209.) Similarly, Law's disciple
+     _Melon_, Essai politique sur le Commerce, ch. I, 3. The
+     number of people is both means and motive to industry
+     (_Berkeley_, Works, II, 187) and hence the public are
+     interested in nothing so much as in the production of
+     competent citizens. (Querist, Nr., 206.) _Suessmilch_, Goettl.
+     Ordnung, I, Kap. 10; Oeuvres de Frederic M. IV, 4; VI, 82.
+
+     About the middle of the 18th century, we find a whole school
+     of political thinkers who decide every question from the
+     standpoint of the influence of the solution on the increase
+     of population. (Excellently refuted by _Schloezer,_
+     Anfangsgruende, II, 15 ff.) Thus especially _Tucker_,
+     Important Questions, IV, 11; V, 5; VII, 4; VIII, 5. Four
+     Tracts, 70. _Forbonnais_, Finances de France, I, 351, who
+     considered it one of the principal objects of a good
+     industrial policy to employ the greatest possible number of
+     men. _Necker_, Sur le Commerce et la Legislation des Grains,
+     1776. _v. Sonnenfels_, Grundsaetze der Polizei, Handlung und
+     Finanz (1765), in which the principle of population is
+     called the highest principle of all four sciences of the
+     state (I, Sec. 25 ff.). These writers understand the "balance
+     of trade" in such a way, that a nation always operates most
+     advantageously which gives employment to the largest number
+     of men with its export articles, (_v. Sonnenfels_, II, Sec. 210
+     ff., 354 ff.) _v. Justi_, Staatswissenschaft, I, 160 ff.,
+     says plainly that a country can never have too many men.
+     According to _Darjes_, Erste Gruende, 379, "even the increase
+     of beggars brings something into the treasury by means of
+     the excise tax which they pay." Compare, also, _J. J.
+     Rousseau_, Contrat Social, III, 9; _Galiani_, Della Moneta,
+     II, 4; _Verri_, Opuscoli, 325; _Filangieri_, Leggi Politiche
+     ed Economiche, II, 2; _Paley_, Moral and Political
+     Philosophy, III, ch. 11. On similar grounds, _A. Young_
+     laments that the increase of proletarians is greatly
+     hindered by the English poor laws. (In later writings it is
+     somewhat different: compare Travels in France, I, ch. 12.)
+     How deeply such ideas had penetrated public opinion is
+     apparent from the opening words of the Vicar of Wakefield,
+     as well as from the declaration of _Pitt_ in parliament in
+     1796, that a man who had enriched his country with a number
+     of children had a claim upon its assistance to educate them.
+     Much more correctly, _Voltaire_, Dict. Philosophique, art.
+     Population, sect. 2.
+
+     The reaction which attained its height in the Malthusians
+     proper, set in with the Physiocrates and _Steuart: Quesnay_,
+     Maximes generales, No. 26; _Mirabeau_, Phil. rurale, ch. 8,
+     and Ami des Hommes (1762), VIII, 84. Similarly, _J. J.
+     Reinhard_, who calls Baden over peopled "for its present
+     system of agriculture." (Vermischte Schriften, 1760, I, 1
+     ff.; II, Varr.) _Moeser_ Patr. Phant., I, 33, 42; II, 1; IV,
+     15; V, 26. Also Minister _v. Stein_: Leben von Pertz, V, 72;
+     VI, 539, 887, 1184. Compare _supra_, Sec. 242. Of certain
+     modern economists, it may be said that they deplore and
+     condemn the birth of every child for whose support there has
+     not been established a life long annuity in advance. A
+     remarkable but unsuccessful attempt is made by _Ch. Perin_,
+     De la Richesse dans les Societes Chretiennes, at the end of
+     the first volume, to reconcile the opposing views. Perin
+     reproaches the Malthusians, and especially _Dunoyer_ and _J.
+     S. Mill_, with the advocacy of _l'onanisme conjugal_, and
+     thus desiring to restore the old heathen situation. Only the
+     Church holds the proper mean between defect and excess,
+     inasmuch as it permits complete continency or the
+     procreation of children regardless of circumstances to its
+     members; while, on the other hand, it, by celibacy and by
+     the inculcation of industry, frugality, etc., guards against
+     over-population. (How well the Roman Church has succeeded in
+     this is best proved by the Roman Compagna!)
+
+     In Greece, too, in its first economic periods, especially at
+     the time that the first colonies were sent out, great fears
+     were expressed of over-population. _Hesiod_ weighs the
+     advantages and disadvantages of the married state against
+     one another with great thoroughness. (Theog., 600 ff.) In
+     the Cypria, even the Trojan war was explained by a divine
+     decree, emitted with the intention of removing
+     over-population.]
+
+     [Footnote 254-3: _A. Young_, Political Arithmetik, 160 ff.
+     In the United States, in ten years, the increase of wealth
+     to that of population, was as 61:33. (_Tucker_, Progress of
+     the United States, 202 ff.) As a good measure for the
+     well-being of the masses, _J. J. Neumann_ recommends the
+     relative number attending higher schools, also that of
+     shoemakers, tailors, etc., because the magnitude of the
+     consumption of wool, leather, etc., can scarcely be directly
+     ascertained. (_Hildebrand's_ Jahrbb., 1872, I, 283, 294.)]
+
+     [Footnote 254-4: Statist. Journ., 1861, 251. In Liverpool,
+     between 1831 and 1841, the population increased 40 per
+     cent., and the number of houses 24 per cent., on account of
+     the large immigration of Irish proletarians. (Edinb. Rev.
+     LXXX, 80.) According to _Fregier_, les Classes dangereuses,
+     the number of good buildings continually increased under
+     Louis Philippe, and that of the worst lodging houses
+     continually diminished. In Prussia, between 1819 and 1858,
+     the population increased 60.8 per cent., the number of
+     houses, 30.1 per cent.; but the insurance-value of the
+     houses seems to have increased in a still greater
+     proportion, (_v. Viebahn_, Zollverein's Statist., II, 291,
+     ff., 299.) According to _Horn_, Bevoelk. Studien, I, 62, ff.,
+     there are to every 100 persons in France, 20 dwelling
+     houses; in Belgium, 19; in Great Britain, 18; in Holland,
+     16; in Austria, 14; in Prussia, 12. Too much should not be
+     inferred from this mere table, as, for instance, in English
+     cities, a house is, on an average, smaller than in the
+     Prussian. A French house has, on an average, only 5-1/2
+     windows and doors; a Belgian house, on the other hand, 3-1/2
+     rooms. And so, in villages, it is found that there are
+     uniformly fewer persons to a house than in cities,
+     especially large ones. In Belgium, for instance, the cities
+     have to every 100 inhabitants, 66 rooms, the country only
+     62. In the largest parishes of France (over 5,000
+     inhabitants), the number of doors and windows is on the
+     average almost six times as great as in the smallest (under
+     5,000 inhabitants); but only 4 times as many persons live in
+     them. (_Horn_, loc. cit. I, 76 ff.)]
+
+     [Footnote 254-5: It was very well remarked, even of the
+     Servian census: _ut omnia patrimonii, dignitatis, aetatis,
+     artium officiorumque discrimina in tabulas referrentur, ac
+     sic maxima civitas minimae domus diligentia contineretur ...
+     ut ipsa se nosset respublica_. (_Florus_, I, 6, 8.)]
+
+
+SECTION CCLV.
+
+MEANS OF PROMOTING POPULATION.
+
+The following are the principal means which have been used to
+artificially promote the increase of population:
+
+A. Making marriage and the procreation of children obligatory by direct
+command. Among almost all medieval nations so strong is the family
+feeling, that it seems to men to be a sacred duty to keep their family
+from becoming extinct. Where a person is not in a condition physically
+to fulfill this duty, the law supplies a means of accomplishing it by
+juridical substitution[255-1] at least. Most national religions[255-2]
+operate in the same direction, as well as the influence of political
+law-givers, who fully share in the contempt for willful old bachelors
+and sterile women, which runs through the national feeling of all
+medieval times.[255-3] In addition to this, there are the positive
+rewards offered for large families of children.[255-4] Even Colbert, in
+1666, decreed that whoever married before his 20th year should be exempt
+from taxation until his 25th; that anyone who had 10 legitimate children
+living, not priests, should be exempt from taxation for all time;[255-5]
+that a nobleman having 10 children living should receive a pension of
+1,000 livres, and one having 12, 2,000 livres. Persons not belonging to
+the nobility were to receive one-half of this, and to be released from
+all municipal burthens.[255-6] Such premiums are, indeed, entirely
+superfluous. No nobleman would desire 12 children simply to obtain a
+pension of 2,000 livres! Colbert himself abandoned this system of
+premiums shortly before his death.[255-7] [255-8]
+
+In the case of morally degenerated nations, in which an aversion to the
+married state had gained ground, efforts have sometimes been made to
+work against it by means of new premiums. Thus, especially in Rome,
+since the times of Caesar and Augustus, although with poor success. It
+little becomes one who is himself a great adulterer to preach the sixth
+commandment.[255-9]
+
+     [Footnote 255-1: In Sparta, impotent husbands were obliged
+     to allow another man to have access to their young wives.
+     (_Xenoph._, De Rep. Laced., I. _Plutarch_, Lycurg., 15.)
+     Compare _J. Grimm_, Weisthuemer, III, 42. Great importance of
+     adoption in Roman law.]
+
+     [Footnote 255-2: Thus, the Indian laws of Menu, concerned
+     principally with the necessity of sacrifices to assure
+     parents an existence after death. Similarly, Zoroaster and
+     Mohammed. In the Bible the periods should be accurately
+     distinguished: I Moses, 2, 18; V Moses, 26, 5; Judges, 10,
+     4; 13, 14; Proverbs, 14, 28; 17, 6, and the Preacher, 4, 8
+     apparently agree; also I Corinth., 7, written under
+     essentially different circumstances but precisely on this
+     account not in contradiction with those passages of the Old
+     Testament.]
+
+     [Footnote 255-3: Genesis, 30, 23. In Sparta, willful
+     bachelorhood was almost infamous. (_Plutarch_, Lycurg., 15.)
+     In Athens, a person might be charged with _agamy_ as with a
+     crime. (_Pollux_, VIII, 40.) Concerning the ancient
+     censorial punishments inflicted on those who had no children
+     and the rewards of prolificacy, see _Valer. Max._, II, 9, 1;
+     _Livy_, XLV, 15; _Gellius_, I, 6: V, 19. Festus v. Uxorium.
+     Many German cities made marriage a qualification for the
+     holding of certain public offices, etc. In some places, the
+     public treasury was made the heir of bachelors, a custom not
+     abolished in Hanover until 1732. Compare _Ludewig_, on the
+     Hagestolziatu (1727), but also _Selchow_, Elem. Juris Germ.,
+     Sec. 290. On the fines imposed on old bachelors in Spain,
+     during the middle ages, see _Gans_, Erbrecht, III, 401 seq.
+     Recently recommended very strongly by _Hermes_, Sophiens
+     Reise (3 aufl.), I, 660.]
+
+     [Footnote 255-4: Yearly rewards for _polytekny_ in Persia:
+     _Herodot._, I 136. In Sparta, a father with three children
+     was relieved of guard duty; and one with four, of all public
+     burthens. (_Aristot._, Polit., II, 6, 13. _Aclian_, V. H.,
+     VI, 6.) Between 1816 and 1823, 250 fathers received the
+     royal gift made to godchildren at their christening in the
+     district of Oppeln, for the seventh son. (_v. Zedlitz_,
+     Staatskraefte der preuss. Monarchie, I, 285.) The king of
+     Hannover paid annually about 900 thalers in such gifts.
+     _Lehzen_, Hannovers Staatshaushalt, II, 346.]
+
+     [Footnote 255-5: Children who had fallen in the service of
+     their country were considered as still living. Precisely
+     similar laws had existed in Spain from 1623 (_de Laet_,
+     Hispania Cap., 4); in Savoy from 1648 (_Keysslers_, Reise,
+     I, 209).]
+
+     [Footnote 255-6: Russian law which required the serf master
+     to emancipate his male serfs who were not married by their
+     20th year, and female serfs not married by their 18th. He
+     could not charge them with desertion in such case, even
+     where combined with theft. (_Karamsin_, Russ. Gesch., XI,
+     59.) An ancient Prussian law provides that the country
+     people shall marry at the age of 25. Corpus Const., March,
+     V, 3, 148, 274.]
+
+     [Footnote 255-7: Lettres, etc. de Colbert, _ed_. Clement,
+     II, 68, 120. _Voltaire_, Siecle de Louis XIV. ch. 29,
+     bitterly complains of this; and also _Berkeley_, Works, II,
+     187, and _Forbonnais_, Finances de France, I, 391. On the
+     other hand, _Ferguson_, Hist, of Civil Society, III, 4,
+     asks: what fuel can the statesman add to the fires of youth?
+     Similarly, _Franklin_, Observations, etc. It should not be
+     forgotten that the taxes necessary to supply the so-called
+     marriage-fund, intended to enable poor couples to marry at
+     the expense of the state, make marriage more difficult for
+     other couples. (_Krug_, Staats-Oek., 31.)]
+
+     [Footnote 255-8: Frederick the Great limited the mourning
+     time of widowers to 3 months and of widows to 9. His
+     abolition of ecclesiastical punishment for those who had
+     fallen, and his prohibition of censuring them under penalty
+     of fine, was based as much on his population policy as on
+     philanthropic grounds. (Preuss. Geschichte, Friedrich's M.,
+     II, 337.) Similarly in Sweden: _Schloezer_, V. W., V, 43. In
+     Iceland, after a great plague, even in the last century, it
+     was provided that it should be no disgrace to a young woman
+     to have as many as six illegitimate children. (_Zacchariae_,
+     Vierzig Buecher vom Staate, II, 112.) The marshal of Saxony
+     wished, in the interest of the recruiting of the army, that
+     marriages should be contracted only for a term of five
+     years. (Reveries de Maurice, etc., 345.) The sterile women
+     of Egypt visit the Tantah, a place of pilgrimage and
+     fair-town, where, under the cloak of religion, they give
+     themselves up to unbridled and promiscuous intercourse.
+     (_Wachenhufen_, vom aegypt. armen Mann, II, 151 ff.)]
+
+     [Footnote 255-9: Even in the year 131 B. C., the censor
+     Metellus demanded that citizens should, for political
+     reasons be compelled to marry. (_Livy_, LIX, _Sueton._, Oct.
+     89.) _Aes uxorium_ for bachelors. (_Valer. Max._, II, 9, I.)
+     Caesar distributed land by way of preference among those who
+     had three or more children. (_Sueton._, Caes. 20.) Augustus'
+     celebrated Lex Julia et Papia Poppaea sought to urge even
+     widows to marry again in opposition to the moral public
+     conscience. (Partly augendo aerario: _Tacit._, Ann., III,
+     25.) _Dio Cass._, LVI, 1 ff. Trajan did more yet, inasmuch
+     as he gave great assistance to impoverished parents, even of
+     the highest classes, to enable them to educate their
+     children. _Sub te liberos tollere libet, expedit!_ (_Plin._,
+     Paneg., 26.) Of what little assistance all this really was,
+     _Tacitus_, Ann., III, 25, IV, 16, and _Plin._, Epist. IV,
+     15, bear witness. If, under the Caesars, the damage done to
+     the childless in the case of inheritance was a frequent
+     motive of divorce (_Friedlaender_, Sittengeschichte I, 389),
+     the L. Julia, in fact, operated in a direction contrary to
+     that in which it was intended to work.]
+
+
+SECTION CCLVI.
+
+IMMIGRATION.
+
+B. Calling for immigrants. This is a means all the more in favor,
+inasmuch as it provides the country not only with new-born children, but
+with mature men, who frequently, when they come from thickly peopled and
+highly civilized countries, promote the industries of the country of
+their adoption, and become the teachers of a higher civilization. I need
+only mention the inhabitants of the Low Countries, who in the twelfth
+century settled as agriculturists in Northern Germany,[256-1] and in the
+fourteenth and sixteenth centuries in England, as artisans; the German
+miners and inhabitants of cities, who, during the middle ages, colonized
+Hungary, Transylvania[256-2] and Poland,[256-3] and the French
+Huguenots, who fled to the Independent Protestant countries. Nearly all
+the remarkable Russian princes since Ivan III. have endeavored in this
+way to induce Germans to settle in Russia, and, for the same reason,
+Peter the Great refused to give up his Swedish prisoners of war.[256-4]
+The great Prussian rulers have cultivated the policy of immigration on
+an extensive scale, and thus maintained the original character of their
+parent provinces as the colonial land of the German people.[256-5] [256-6]
+
+Such immigrants have been generally accorded a release from taxation and
+from military duty for a number of years; a proper measure since the
+state thereby only surrendered an advantage temporarily which it
+otherwise would not have possessed at all. Where the land of the state
+receiving the immigrants was still almost valueless, it has frequently
+been made over in parcels to well-to-do colonists without
+consideration.[256-7] Assistance exceeding these limits is a very
+questionable boon. It should not be forgotten that the influx of men who
+bring no capital whatever with them, and who are not good workmen, is of
+no advantage. Nor are they always the best elements of a people who
+emigrate. They are very frequently men who, through their own fault, did
+not prosper at home, and who come to the new country, with all their old
+faults.[256-8] This is, of course not true of those who emigrate from
+their attachment to some great principle; for instance, it is not true
+of those who emigrate in search of freedom of conscience. These may
+become, provided they are in harmony with their new environment, a
+support and ornament to their adopted country.[256-9] But there is
+always danger that they may not be able to adapt themselves to their new
+economic relations, and that thus they may in consequence succumb to the
+pressure of circumstances.[256-10]
+
+Oriental despotisms have frequently endeavored to assure themselves the
+possession of newly conquered countries by transporting its most
+vigorous inhabitants in whole masses to a distant part of their old
+empire. Thus, the Jews were carried into Assyria and Babylon; the
+Eretrians into Persia; the inhabitants of Caffa by Mohammed II.; the
+Armenians by Abbas the Great. The Russians, too, undertook a similar
+transportation of people under the Ivans.[256-11]
+
+C. The prohibition of emigration, which, in the case of serfs, vassals
+and state-villeins, it seems natural enough, was very usual in periods
+of absolute monarchical power. Thus, for instance, Frederick William I.
+forbade the emigration of Prussian peasants under penalty of death.
+Whoever captured an emigrant received a reward of two hundred
+thalers.[256-12] The public opinion of modern times is very decidedly
+opposed to this compulsion, which would make the state a prison.[256-13]
+"A really excessive population would still find an exit to escape,
+namely, through the gates of death." (_J. B. Say._) The statesman, on
+the other hand, who opposes the withdrawal of political or
+ecclesiastical malcontents should take care, lest he act like the
+physician who prevents the discharge of diseased matter from the sick
+body, and causes it to take its seat in some vital organ.[256-14] Hence,
+even where emigration is considered detrimental to the country, no
+governmental condition should be attached to it, except that the person
+desiring to emigrate should give timely notice of his intention, and
+receive his passport only after it has been shown that he has discharged
+all his military duties, paid his taxes and his debts.[256-15] [256-16]
+
+The severe penalties imposed in Athens on emigration, after the defeat
+at Chaeronea, when general discouragement threatened the state with total
+dissolution, belong to an entirely different mode of thought.[256-17]
+
+     [Footnote 256-1: _v. Wersebe_, Ueber die Niederlandischen
+     Kolonien in Deutschland, II, 1826.]
+
+     [Footnote 256-2: The immigration of the so-called Saxons
+     into Transylvania began between 1141 and 1161, in
+     consequence of the great inundations in the Netherlands.
+     Compare _Schloezer_, Kritische Sammlungen zur Gesch. der
+     Deutschen in Siebenb., 1795.]
+
+     [Footnote 256-3: In Poland, a multitude of German colonists
+     established themselves during the thirteenth century on the
+     domains of the crown and of the church. As a rule, they
+     obtained the land in consideration of moderate services and
+     rents, which, however, did not begin to run until after
+     eight years, nor until after thirty for uncleared land. In
+     addition to this, they were governed by the German law, and
+     their communal authorities were for the most part German.
+     (_Roepell_, Gesch. von Polen, I, 572 ff.)]
+
+     [Footnote 256-4: Later, the ambassador of Peter the Great
+     endeavored to attract into Russia the Swedes, whom the
+     Russian invasion had prevented from continuing the operation
+     of their mines, saw mills, etc. (_Schlosser_, Gesch. des 18
+     Jahrhund., I, 205.) Catherine's colonization, especially on
+     the Volga and in. Southern Russia, 1765 and 1783. About
+     1830, the number of the colonists was estimated at 130,000,
+     mostly Germans.]
+
+     [Footnote 256-5: It is estimated that Frederick William I.
+     spent 5,000,000 thalers in establishing colonists. Up to
+     1728, 20,000 new families were received into Prussia alone.
+     _Stenzel_, Preuss. Gesch. III, 412 ff. Frederick the Great
+     endeavored above all to retain in the country the strangers
+     who came there periodically. Thus, the harvesters of
+     Vogtland, in the neighborhood of Magdeburg, and the Vogtland
+     masons in the suburbs of the capital (1752). Compare _v.
+     Lamotte_ Abhandlungen, 1793, 160 ff. He is said to have
+     settled 42,600 families, mostly foreigners, in 539 villas
+     and hamlets. Besides, the population of Prussia, between
+     1823 and 1840, increased by 751,749 immigrants, without any
+     positive favors shown them (_Hoffmann_, Kleine Schriften, 5
+     ff.), and the greater part of these were not very poor.]
+
+     [Footnote 256-6: In antiquity, nothing so much contributed
+     to the rise of Athens and Rome as their reception of noble
+     refugees during its earlier periods.]
+
+     [Footnote 256-7: In Russia, the Emperor Alexander, in 1803,
+     promised the colonists a full release from taxation during
+     ten years, a reduction of taxation for ten more, and freedom
+     from civil and military service for all time; besides 60
+     _dessatines_ of land per family gratis, an advance of 300
+     rubles for housebuilding, etc. and money to enable them to
+     maintain themselves until their first harvest. The provision
+     relating to Poland (1833) was much less favorable:
+     importation of movable property free of duty, freedom from
+     military duty and from taxation for six years, and perpetual
+     quit rents (_Erbzinsgueter_) to agriculturists who owned a
+     certain amount of capital. Brazil promised immigrants, in
+     1820, land and ten years' freedom from taxation. Compare
+     _Jahn_, Beitraege, z. Einwanderung und Kolonisation in Br.
+     (1874), 37 ff. Hungary, in 1723, accorded settlers freedom
+     from taxation for six years and artisans for fifteen years.
+     (_Mailath_, Oesterreichische Gesch., IV, 525.) The ordinance
+     of 1858 affords too little security for non-Catholics and is
+     not adapted to farmers, but only to purchasers.]
+
+     [Footnote 256-8: Many of Frederick the Great's colonists
+     turned out very badly. They were attracted only by the
+     premiums offered, and they became dissolute after they had
+     consumed them. Many of them thought that they were to be of
+     use only by giving children to the state (_Meissner_, Leben
+     des Herrn v. Brenkenhof, 1782), and that the land donated
+     them was to be cultivated by others at the expense of the
+     state! _Dohm_ mentions villages of colonists which had to a
+     great extent changed hands four times in 20 years. Whether
+     the king would not have better attained his object had he
+     employed the younger sons of Prussian peasants as colonists,
+     _quaere_. (_Dohm_, Denkwuerdigkeiten, IV, 390 ff.) Even
+     _Suessmilch_ says: "A native subject is, in most cases and
+     for most purposes, better than two colonists." (Goettl.
+     Ordnung, I, 14, 275.) Compare the work: Wie dem Bauernstande
+     Freiheit und Eigenthum verschafft werden koenne, 1769, 16.
+     Every family of colonists in South and new East Prussia is
+     said to have cost the state 1,500 thalers. (_Weber_,
+     Lehrbuch der polit. Oekonomie, 1806, II, 172); but according
+     to _Buesching_ (Beitraege z. Regierungsgeschichte Friedrichs,
+     II, 239), only 400 thalers. _J. Moeser_ is strongly opposed
+     to the encouragement of immigration by direct appeals to it.
+     (P. Ph., I, 60.) According to _Buelau_,
+     Staatswirthschaftslehre, 24, only those immigrants are
+     welcome who are attracted to the country by the whole
+     character of its national institutions and circumstances. It
+     is a different matter when, for instance, the government in
+     New South Wales permits the colonists, by the payment of
+     very moderate contributions, to have their workmen, friends
+     and relations come after them from England in ships owned by
+     the government. Between 1832 and 1858, L1,700,000 were paid
+     out for such transportation. (Novara-Reise, III, 53.)]
+
+     [Footnote 256-9: Dutch Remonstrants since 1619 in Schleswig;
+     Huguenots established since 1685, in Prussia, to the number
+     of about 11,000; Waldenses in Prussia since 1686; natives of
+     Salzburg and of the Palatinate in Prussia. For a state which
+     is the representative of a religious or political principle,
+     it may be a matter of honor, and then certainly useful, to
+     afford an asylum to persons, adherents of that principle.]
+
+     [Footnote 256-10: On the German colonists whom Olavides
+     settled in Spain, in 1768 etc., see _Schloezer's_
+     Briefwechsel, 1779, IV, 587 ff. See adv.: Ueber Sitten,
+     Temperament etc., Spaniens von einem reisenden Beobachter in
+     den J., 1777 und 1778, Leipzig, 1781, p. 260, ff.]
+
+     [Footnote 256-11: Canale Crimea, III, 346 ff. _Karamsin_,
+     Russ. Geschichte, VIII, 97, 424.]
+
+     [Footnote 256-12: Ordinance of 1721. Compare _Wolf's_
+     Vernuenftige Gedanken, Sec. 483, who at that time highly
+     disapproved of such compulsion. Quite the reverse, the
+     Prussian Landrecht, II, Tit. 17, Sec. 133 ff. On the other
+     hand, in Spires, in 1765 and 1784, persons of good conduct,
+     good workmen and others of sufficient means, were forbidden
+     to emigrate. Prohibition under pain of death, in Spanish
+     Milan; Novae Constitut., 29, 145. The work: Les Interets de
+     la France maletendus (1752), 258, advocates the prohibition
+     of emigration as a species of _les majeste_.]
+
+     [Footnote 256-13: _Beccaria_, Dei Delitti e delle Pene,
+     1765, cap. 52. Similarly, _Mirabeau_, in his congratulatory
+     letter to Fred. Wil. II., and _Benjamin Franklin_, On a
+     proposed Act for preventing Emigration: Works, IV, 458 ff.
+     The Dutch were very early advocates of freedom of
+     emigration. Compare _U. Huber_, De Jure Civit., 1672, II, 4;
+     _Pufendorff_, Jus. Natur. (1672), VIII, 11. Theorizers
+     otherwise the most opposite in their views are here agreed.
+     _Jeremy Bentham_ says that properly speaking a prohibition
+     against emigration should begin with the words: We, who do
+     not understand the art of making our subjects happy; in
+     consideration that if we should allow them to take flight,
+     they would all betake themselves to strange and better
+     governed countries, etc. Des Recompenses et des Peines, II,
+     310. But also _K. L. v. Haller_, Restauration der
+     Staatswissenschaft, I, 429 ff., 508, demands most
+     strenuously that there should be freedom of emigration, for
+     the reason that every man, without prejudice to any one
+     else, might seek the state constitution which he wanted, _J.
+     Tucker_ entirely approved the English law prohibiting the
+     emigration of workmen. Compare also _J. Bodin_, De Republ.,
+     I, 6.]
+
+     [Footnote 256-14: English prohibition of emigration under
+     Charles I., 1637. _Rymer_, Foedera XX, 143. The story that
+     Cromwell and Hampden were thus detained in the country may
+     be false, however. (_Bancroft_, History of the United
+     States, I, 445.) Earlier prohibition of emigration of the
+     Norwegian king in relation to Iceland. (_Schlegel_, Gragas,
+     Comment Crit. p. XV.) In ancient Greece, the restriction of
+     emigration by foreign powers contributed very largely to the
+     democratization of the mother country. Something similar is
+     impending over Germany if the present emigration towards
+     North America should be much weakened by a change of
+     circumstances there.]
+
+     [Footnote 256-15: Many governments require proof that the
+     person emigrating will be admitted into his contemplated new
+     home, and that he has the means to cover the expenses of the
+     journey. The threat of not receiving back returning
+     emigrants has very little effect, for the reason that it is
+     the most thoughtless who at the moment of emigration
+     entertain the most rose-colored hopes.]
+
+     [Footnote 256-16: I shall treat of the so-called after-tax
+     (_Nachsteuer_) in the fourth volume of my System.]
+
+     [Footnote 256-17: Compare _Lycurg_., adv., Leocrat. _Caesar_
+     forbade all persons of senatorial rank to emigrate out of
+     Italy; other persons between 20 and 40 years of age were not
+     to remain absent over three consecutive years at most. For
+     the same reason, the time of military service was shortened.
+     (_Mommsen_, R. G., III, 491.)]
+
+
+SECTION CCLVII.
+
+SANITARY POLICE.
+
+D. Hygienic measures and the improvement of the sanitary police of a
+country are of the utmost importance, not only to increase the number of
+inhabitants, but also to produce the conditions of population described
+in Sec. 246.[257-1]
+
+E. It is the indispensable condition precedent of all the measures which
+we have examined, if they would attain their end, that the means of
+subsistence of the people should be increased or at least more equally
+divided among them. Where this has been done the increase of population
+will, as a rule, take care of itself; where it has not, the artificially
+increased procreation of children can only produce new victims for the
+angel of death. A merely more equable distribution can, however, improve
+the condition of the people only in exceedingly rare cases. (Sec. 204). As
+a rule, the diseases which it is attempted to thus cure grow worse, or
+they at least increase in extent. (Sec. 80, ff., 250.) It is quite
+different, of course, when the more equable distribution coincides with
+an absolute growth of the nation's economy. We shall see, later, that,
+for instance, the freedom of land alienation and of industrial pursuits,
+when not accompanied by an important advance in the corresponding
+branches of economy may do more harm than good; but that under favorable
+circumstances a multitude of dormant forces are thereby awakened, and
+that then the national-economical dividend may be increased much more
+than the divisor. (Sec. 239. _Roscher_, Nationaloekonomik des Ackerbaues, Sec.
+99, 139 ff.)
+
+     [Footnote 257-1: _Bacon_ in his History of Life and Death,
+     or of the Prolongation of Life, hopes the better physicians
+     "will not employ their times wholly in the sordidness of
+     cures, neither be honoured for necessities only; but that
+     they will become coadjutors and instruments of the divine
+     omnipotence and clemence in prolonging and renewing the life
+     of man."]
+
+
+SECTION CCLVIII.
+
+MEANS OF LIMITING THE INCREASE OF POPULATION.
+
+A. The means which consists in rendering marriage less easy by
+legislation is surrounded with peculiar difficulties in densely
+populated countries, which are always highly civilized. The state would
+have here to swim against the stream, and it would be generally a much
+less difficult task to enlarge the field of food. If there remained from
+a former period any inducements held out to promote marriage, it is self
+evident that they should now be discontinued. A voluntary bachelor must
+now no longer be considered as a man who permits one more woman to
+become an old maid, but as one who facilitates marriage to another
+couple.[258-1] On the other hand, it should not be forgotten that, for
+men, generally, marriage is not only an occasion of increased outlay,
+but also an incentive to increased activity and greater economy.[258-2]
+Many states have endeavored to condition the founding of a family by
+requiring evidence that the father has a prospect of being able to
+support one.[258-3] Distinguished theorizers accede to this condition,
+inasmuch as they deny the right of over-population.[258-4] But,
+unfortunately, it is impossible, except in a few extreme cases, to
+assert or deny a prospect of being able to support a family.[258-5] How
+easily is the most remunerative power of labor destroyed by physical or
+mental disease. Scarcely less subject to change is the so-called certain
+opportunity of acquisition afforded by a profession or a trade, when it
+is not guarantied by the possession of considerable capital or of landed
+property, or by some legal privilege. The amount of property required by
+many laws is so small that it alone would suffice to support the family
+only for a few years.[258-6] And yet it has been generally provided that
+the proof of such a property gave one an unconditional right to
+establish a domicile and to marry. It is only where this is wanting that
+special consent is required. But who shall exercise this right of
+consent? The parish, perhaps, because on it the impoverished family
+would fall as a burthen. But it is to be feared that the course of
+procedure here would be too severe. Local narrow-heartedness might
+refuse the right of domicile to skillful and industrious candidates, who
+are in the best situation to maintain a family, but whose competition
+the older members of the parish might dread.[258-7] Hence, in most
+countries, the parish is treated as a party, on whose protest against
+the marriage the state itself decides[258-8] If the state authorities
+were to give the immediate decisions in such cases, we might expect, in
+ordinary times, a liberality which would frustrate the object of the
+law; but sometimes, also, considerable chicanery on grounds of so-called
+higher police.
+
+Where there still exist classes and corporations with real independence,
+the members of which still attach a real value to the body, the matter
+takes care of itself. The journeyman, for instance, voluntarily retards
+his marriage until he has become a master workman, and once he has
+attained that degree, he "works the golden mine of his trade."[258-9]
+But wherever a numerous proletariat exists, the individuals of which
+have no better future to expect, whatever their present sacrifices and
+self-denial, and who know nothing of class-wants or class-honor,
+prohibitions of marriage are severely felt, and are far from being well
+enforced.[258-10] The rule which excites least opposition is the fixing
+of a normal age for marriage, under which males should not be allowed to
+undertake its engagements.[258-11] Of all privileges those attaching to
+age are viewed with least aversion. Something similar is effected in
+most countries to-day by military conscription, which, on this account,
+in young countries, has a very restrictive effect on the increase of
+population.[258-12] The best means against thoughtless marriages
+certainly consists in increasing the measure of individual wants (Sec.
+163); assuming, of course, that the added wants are proper and
+worthy.[258-13] There is always the consideration that all limitation of
+marriage, even voluntary self-limitation, by decreasing or postponing
+marriage, may prove disastrous to morals. It should, however, not be
+forgotten that there are other sins besides impurity, and that complete
+poverty constitutes one of the worst of temptations. Especially is it
+not the angel guardian of chastity.[258-14]
+
+In England[258-15] and France, all governmental hinderances to marriage
+have long since ceased, and in Prussia, at least all general police
+hinderances; and we can by no means say that the consequences have been
+evil. On the other hand, no favorable results as to their influence on
+pauperism can be shown statistically from the restrictive laws of
+Wuerttemberg. Rather do statistics point here to the unfavorable probable
+result of an increase of illegitimate births.[258-16] According to the
+law of the North German Confederation of 1868, the contract of marriage,
+except in the case of soldiers, officials, clergymen and teachers, is so
+free, so far as police influence is concerned, that even actual poverty
+is no impediment.[258-17] [258-18] [258-19]
+
+     [Footnote 258-1: In Ireland, the unsalaried condition of the
+     Catholic clergy who depended entirely on marriage fees (as
+     high as L20 being paid by poor farmers. Quart. Rev. No.
+     289), baptismal fees, burial fees, etc., operated as an
+     artificial stimulus to the increase of population under the
+     most unfavorable conditions. See Sec. 254.]
+
+     [Footnote 258-2: It is very noteworthy in this connection
+     that married people commit relatively fewer crimes than
+     single persons. Thus, for instance, in Prussia, in 1861, of
+     every 1,000 unmarried men over 16 years of age, 1.18 were
+     sent to the house of correction; of every 1,000 married men,
+     only 0.59; of every 1,000 divorced, 13.71! (Preuss. Statist.
+     Zeitschr., 1864, 318 seq.) In Austria, 1858-59, there was one
+     person under sentence in every 203 unmarried persons, in
+     every 669 married, and in every 1,053 widows and widowers.
+     Of the married, there was a larger proportion of criminals
+     among the childless than among those with children (49.8 per
+     cent. against 42.6 per cent.). Compare _v. Oettingen_,
+     Moralstatistik, 759. This evidence is all the stronger
+     since, circumstances being otherwise the same, fathers of
+     families are harder pressed by cares for food than single
+     persons.]
+
+     [Footnote 258-3: In Wuertemberg, the authorities were for the
+     first time enjoined in 1633, to dissuade people from
+     untimely marriages; in 1712 the consent of the authorities
+     to a marriage was made dependent on the evidence of a
+     religious education and the capacity to support a family.
+     Between 1807 and 1828, all restrictions on marriage because
+     of incapacity to support a family were removed. According to
+     the Bavarian Penal Code of 1751 (I, 11, Sec. 7), persons who
+     had married without governmental authorization, and who
+     could not afterwards support themselves except by begging,
+     were sentenced to at least one year in the workhouse and to
+     be whipped once a week. Only a short time ago scarcely any
+     one in Bavaria had a real and unquestionable right to marry.
+     (_Braun_, Zwangscoelibat fuer Mittellose in _Faucher's_
+     Vierteljahrsschrift, 1867, IV, 8.) Austrian law relating to
+     the proof of the certainty of maintaining one's self by
+     one's trade etc: 12 Jan., 1815; 4 Sept., 1825.]
+
+     [Footnote 258-4: _R. Mohl_, in the 3d edition of his
+     Polizeiwissenschaft, I, 152 ff., requires proof of the
+     possession of a sufficiency of food, at least of the means
+     to begin house-keeping. According to _Marlo_, Weltoekonomie,
+     III, 84 ff., and _Schaeffle_, Kapitalismus und Socialismus,
+     689 ff., the compulsory insurance of widow and children
+     should precede marriage.]
+
+     [Footnote 258-5: Thus the Wuerttemberg law of 1833 prohibits
+     the marriage of those who are under prosecution on account
+     of repeated thefts, fraud, or carrying on the trade of a
+     beggar; also all such as have been criminally punished
+     within the two next preceding years, and all who within the
+     three next preceding years have received alms from the
+     public treasury, except in cases of misfortune, of the
+     causes of which they were innocent. The Bavarian law of
+     April 16, 1868, gives the parish a right of veto. According
+     to the royal Saxon ordinance of 1840, male recipients of
+     alms are permitted to marry only when their marriage makes
+     an important amelioration of their circumstances probable,
+     and does away with the necessity of public assistance in the
+     future.]
+
+     [Footnote 258-6: During Iceland's middle age, prohibition of
+     marriage for all who did not possess at least from 100
+     ounces of silver or 600 ells _vadhmal_. (_K. Maurer_,
+     Island, 443 seq.) In Bavaria (July 1, 1831), the right of
+     domicile is made to depend on a landownership free of debt,
+     and a _steuersimplum_ of from 1 to 2 florins (in towns more)
+     in country parishes; on the real (reales) right of carrying
+     on a trade, or on a personal trade-concession sufficient for
+     support. A tax of 1 florin in 1852 meant about 1,200 florins
+     worth of property. In other cases it depended on whether the
+     parish recognized the existence "complete and permanent of
+     the means of livelihood." Here good repute and the
+     possession of a considerable savings bank deposit were to be
+     particularly considered. In cases of competition, discharged
+     soldiers who had served out their term, and good servants of
+     15 years service were to be preferred. In Wuerttemberg (1833)
+     a sufficient guaranty that a person contemplating marriage
+     possessed the means of support was: the personal capacity to
+     exercise a liberal art or to follow a scientific career, to
+     engage in commerce or agriculture, or some branch of
+     industry, or follow a trade, with sufficient income
+     therefrom to support a family; or the possession of a
+     property, according to locality, of 1,000, 800 or 600
+     florins. The law of May 5, 1852, was more exacting, and
+     required, besides personal competency, evidence that one's
+     calling yielded a sufficient income, as well as of an amount
+     of property free of debt, of the value of from 150 to 200
+     florins. In Baden (1831) a property considered sufficient to
+     insure the means of livelihood amounted in the four largest
+     cities to 1,000 florins, in 10 smaller ones to 600; in the
+     remaining communities to 300 florins. In the electorate of
+     Hesse, the amount (1834) was from 150 thalers (for small
+     country communities) to 1,000 thalers. (Kassel.) An
+     irreproachable character is required by many laws (in
+     Wuerttemburg, since 1832, the good reputation of both
+     parties), and the community is empowered to dispense with
+     the other material conditions. Long-continued savings-bank
+     deposit speaks well for the parties' competency to support a
+     family, because it bears testimony to an excellent economic
+     disposition.]
+
+     [Footnote 258-7: Remarkable instance in _Rau_, Lehrbuch, II,
+     Sec. 15 a., note b.]
+
+     [Footnote 258-8: In Bavaria, in 1808, the decision reserved
+     to the royal boards of police.]
+
+     [Footnote 258-9: Those callings in which a certain _esprit
+     de corps_ prevails such as that, for instance, of officials
+     and officers, submit willingly to restrictions on marriage
+     authoritatively imposed. The Catholic clergy submit even to
+     a full prohibition of marriage. Such measures uniformly
+     strengthen the isolation of the class from the nation as a
+     whole. It is well known that, during the middle ages,
+     theological views on the meritoriousness of all self-denial
+     made voluntary celibacy very common. The Franciscan order
+     counted at one time 150,000 monks and 28,000 nuns, the
+     so-called members of the third order, or penitents, not
+     included. (_Helyot_, Gesch. der Kloster und Ritterorden, V,
+     33.) The severity of the laws relating to fasting might
+     also, according to _Villerme_, be regarded as a "preventive
+     check." Compare _supra_, Sec. 240, note I.]
+
+     [Footnote 258-10: The Prussian law authorizing parents and
+     guardians to put an interdict on marriages, because of a
+     want of the necessary means, of vicious habits, disease,
+     etc., may constitute a check in very good families and
+     families of the middle class, but scarcely so in proletarian
+     circles.]
+
+     [Footnote 258-11: Besides Wuerttemberg, Baden also prescribed
+     25 years; in Saxony and Hessen-Darmstadt, 21 sufficed; in
+     Prussia even 18. _Schaeffle_ advocates a minimum age of 25
+     years for males and 22 years for women (loc. cit.).
+     Similarly, _Mohl_, loc. cit.]
+
+     [Footnote 258-12: Why, hitherto, in Sweden, by way of
+     exception, military service promoted early marriage, see
+     _Wappaeus_, Bevoelkerungsstatistik, II, 357. In France, on the
+     other hand, the increase of population since 1815 has been
+     almost exactly in the inverse ratio of the strength of the
+     military levy. Acad. des Sc. Morales et Polit., 1867, II,
+     159.]
+
+     [Footnote 258-13: _Malthus_, Principle of Population, 10,
+     ch. 13.]
+
+     [Footnote 258-14: _Malthus_, Principle of Population, IV,
+     ch. 4, 5. It is a great error to suppose that the number of
+     immoral acts increases and decreases with the frequency of
+     temptation. In Ireland, farmers very frequently keep their
+     men servants and maid servants even after the latter have
+     married. But the very facility with which a fall is
+     legalized, increases very largely the number of reckless
+     marriages. (_Meidinger_, Reise, II, 187 seq.) In the country
+     about Goettingen also, where the people marry much earlier on
+     an average than in that about Calenberg, illegitimate births
+     are much more frequent.]
+
+     [Footnote 258-15: Even no other legal obstacle which could
+     make marriage more difficult occurred to _Malthus_, except
+     that which consists in the refusal of public assistance
+     after the expiration of a fixed period of time. (Principle
+     of Population, IV, ch. 8; V, ch. 2.)]
+
+     [Footnote 258-16: See the tables in the Tuebinger
+     Zeitschrift, 1868, 624 ff. Thus, formerly, in Rhenish
+     Bavaria, where there was complete liberty allowed in this
+     matter, the poor rates compared with the population, were
+     only 34.6 per cent. of the average in the rest of Bavaria;
+     and the number of illegitimate births was not so unfavorable
+     by one-half. (_Rivet_, in the Archiv der polit. Oekonomie, N.
+     F., I, 39.) The Bavarian law of the 16th of April, 1868,
+     which provides that the community or parish can object to a
+     person's marriage only on account of unpaid parish taxes or
+     poor rates (art. 36) largely increased the number of
+     marriages and diminished the illegitimate births; in the
+     first year to 22.2 per cent., in the second to 17, and in
+     1873 to 13.2 per cent. (Allg. luth Kirchenztg., 12 Maerz,
+     1875.) According to official statement, this law did more to
+     improve the condition of workmen in the towns than any other
+     cause. Compare _Thudichum_, Ueber unzulaessige Beschraenkungen
+     des Rechts der Verehelichung, 1868. Per contra, _E.
+     Schuebler_, Ueber Niederlassung und Verehelichung in den
+     verschiedenen deutschen Staaten, 1855.]
+
+     [Footnote 258-17: _Reinhold_ has recommended the direct
+     limitation of the procreation of children by the process of
+     _infibulation_ practiced on boys fourteen years of age and
+     continued until they arrive at a marriageable age or are
+     able to support illegitimate children. An der Uebervolkerung
+     in Mitteleuropa, 1827. Ueber die Population und Industrie,
+     oder Beweis dass die Bevoelkerung in hoch kultivieren Landern
+     stets den Gewerbfleiss uebereile, 1828. Ueber das menschliche
+     Elend, welches durch Missbrauch der Zeugung herbeigefuehrt
+     wird, 1828. Das Gleichgewicht der Bevoelkerung als Grundlage
+     der Wohlfahrt, 1829. The ancients proceeded sometimes in a
+     similar way in the case of slave actors: _Juvenal_, VI, 73.
+     Compare _Winckelmann_, Antichi inediti, Tav. 188.]
+
+     [Footnote 258-18: The obstacles formerly placed in many
+     countries in the way of the marriage of Jews of allowing
+     only the first-born to marry, and this only when a vacancy
+     occurred in the number of families by death (Austria), was
+     not based on a solicitude about population, but on
+     religio-national intolerance, in part also on commercial
+     police grounds.]
+
+     [Footnote 258-19: _Fisher_, Gesch. des deutschen Handels
+     (1785 ff.), still considers war as a remedy for
+     over-population, but _M. Wirth_, Grundzuege der N. Oek.,
+     rightly remarks that war destroys not so much children,
+     women and the infirm as the most productive of the male
+     population, and immense amounts of capital.]
+
+
+SECTION CCLIX.
+
+EFFECTS OF EMIGRATION.
+
+B. It is sufficiently evident that emigration from an over-populated
+country[259-1] may be attended with good consequences, especially when
+it takes place in organized bodies.[259-2] There is little danger that
+one who knows how to work and pray will go to the bad in a young
+agricultural colony. In a wilderness which has not yet been cleared, the
+greater number of proletarian vices spontaneously disappear. There is
+here no opportunity for jealousy or theft; little for intemperance, the
+gaming table, licentiousness or quarrelsomeness. Here labor is a
+necessity, and the rewards of industry and saving soon take a palpable
+shape. As the emigrant, in such a situation, can scarcely help marrying,
+children far from being a burthen, soon become companions to their
+parents in their solitude and, later, helpmates in business. The
+colonist belonging to the lower middle class is most certain of
+improving his condition. It may, indeed, require many and toilsome years
+before he can feel comfortable himself; but his children who would
+probably have led a proletarian life in the mother country may calculate
+with certainty on future well-being. The father's small capital which
+the outlay for education alone would have exhausted at home, here
+becomes the seed of a number of prosperous households.[259-3] It is
+otherwise with the mass of the people who remain at home. (Compare Sec.
+241.)[259-4] It is a matter of much more difficulty than is generally
+supposed by those who have not made a study of the matter, that the
+yearly emigration from countries like Germany should counterbalance the
+excess of births over deaths.[259-5] It is not to be supposed that men
+who are really useless at home should be of any service in the colonies.
+How violently have not English colonies opposed the advent of settlers
+from the poorhouses of the mother country. The classes which are
+readiest to emigrate: idlers, fickle characters, fathers of families
+with altogether too many children, artisans who by a revolution in
+industry have lost the means of making a livelihood, are precisely those
+who find it most difficult to obtain employment on the other side of the
+water.[259-6] Most colonies refuse to receive persons over forty years
+of age at their own expense. But a young man intellectually and
+physically able to work, can always make his way even in the old world;
+only the weaker succumb under the pressure of over-population. Lastly,
+it should be considered what an amount of capital is required for
+purposes of emigration and settlement. If emigrants, on the average,
+take more capital with them than is estimated to be the _per capita_
+amount of capital possessed by those remaining at home,[259-7] the
+consequence would be that, as a result of this very successful
+emigration, the ratio of consumers to the amount of capital in the
+country would become more and more unfavorable. The emigrating portion
+of the country might experience the advantage of this, but the great
+mass of the population remaining at home would become poorer in capital
+and in vigorous men,[259-8] and richer in the comparatively needy. The
+comfortless contrast between colossal wealth and beggarly want could
+only be thereby increased, since it is almost exclusively the lower
+middle class who emigrate to agricultural colonies. The over-rich, as a
+rule, will not, and proletarians can not, go thither.[259-9] [259-10]
+
+     [Footnote 259-1: Compare _R. Mohl_, in the Tuebinger
+     Zeitschrift fuer Staatswissenschaft, 1847, 320 ff.;
+     _Roscher_, Nationaloekonomische Ansichten ueber die Deutsche
+     Auswanderung in the Deutschen Viertejahrsschrift, 1848, No.
+     43, 96 ff., the same author's Kolonien, Kolonialpolitik und
+     Auswanderung, 2 Aufl., 1856, 342 ff.; _J. Froebel_, Die
+     Deutsche Auswanderung und ihre Kulturhistorische Bedeutung,
+     1858.]
+
+     [Footnote 259-2: Unfortunately, emigration in groups has
+     recently become very rare, whereas, during the middle ages,
+     it took place preponderantly, first in armies and then in
+     communities.]
+
+     [Footnote 259-3: According to parliamentary investigations,
+     the Irish laborer in Australia, Canada, etc., improves in a
+     few years to such an extent that he can scarcely be
+     distinguished from the Anglo-Saxon. He becomes industrious,
+     self-reliant etc. (Edinb. Rev., 1950, 25.) In North America,
+     however, the Irish seldom become really well off, or occupy
+     a position of consequence in society. (_Goertz_, Reise, 88.)]
+
+     [Footnote 259-4: _E. G. Wakefield_, in other respects so
+     intelligent a writer on the theory of colonization, is of
+     opinion that every nation might, by giving a proper
+     direction to emigration, establish such a density of
+     population as it desired. Thus, for instance, if there were
+     10,000 marriages contracted every year in a country, and it
+     was provided that each of these 10,000 couples should be
+     sent to some colony immediately after marriage, the whole
+     mother country would become extinct in from 60 to 70 years.
+     This extreme is of course not desired by any one; but the
+     way to be followed in order to attain a desirable limit is
+     hereby pointed out. That emigration has in so few instances
+     checked the advance of population, Wakefield accounts for by
+     the fact that the means furnished to emigration have to a
+     certain extent been wasted, and that old men, children,
+     etc., who either had no influence on population as yet, or
+     could have no more in future, constituted a large proportion
+     of those who left the country. (England and America.)
+
+     Evidently an important consideration is here omitted, viz.:
+     that there is no such a thing as a normal year of marriages,
+     etc. If, for instance, all males were to wait until their
+     30th year, and all females until their 20th, to enter the
+     married state, and that the government were to send all
+     competent persons as soon as they had reached this age to
+     America, what would be the consequence? Numberless
+     situations affording the means of supporting a family would
+     be vacant, and a number of young men of 29 and of young
+     women of 19 would be induced to marry, etc. The number of
+     children to a marriage in England in 1838-44 was 4.13;
+     1845-49, 3.96; 1850-54, 3.26; 1855-59, 4.15. (Journal des.
+     Econ., Oct., 1861.)]
+
+     [Footnote 259-5: _Benjamin Franklin_, in 1751, estimated the
+     aggregate number of English inhabitants in the North
+     American colonies at 1,000,000, of whom only 80,000 had
+     immigrated into the country. Hence, from 1790 to 1840, the
+     United States, the promised land of European emigrants,
+     received only about 1,500,000 emigrants. From 1820 to 1859,
+     the number (according to _Bromwell_ and _Huebner_) was
+     4,509,612; according to a report of the New York Chamber of
+     Commerce (1874), 9,054,132 since 1824. An annual immigration
+     of 100,000 was reached for the first time in 1842. According
+     to the census of 1870, there were in the United States
+     5,567,229 persons born in foreign countries, of which number
+     1,690,410 were born in Germany, 1,855,827 in Ireland, and
+     5,550,904 in England. The aggregate emigration from the
+     British empire, which unquestionably possesses most colonies
+     and the largest marine, was, on an average, between 1825 and
+     1835, only about 55,000; 1836 to 1845, over 80,000; in 1845
+     alone, over 93,000, while the yearly excess of births over
+     deaths between 1841 and 1848, according to _Porter_, was in
+     England and Wales alone, on an average, 169,000. During the
+     succeeding years emigration received an extraordinary
+     stimulus (which changed the proportion) in the influence of
+     the discovery of the Californian and Australian mines, and
+     in the Irish famine. Hence the emigration was, at least, in
+
+          ================================
+              _in_           | _Persons._
+          -------------------+------------
+           1847,             |  258,000
+           1848,             |  248,000
+           1849,             |  299,000
+           1850,             |  280,000
+           1852, (maxim.)    |  368,000
+           1853,             |  329,000
+           1855,             |  176,000
+           1857,             |  212,000
+           1858-60, (average)|   96,000
+           1862,             |  121,000
+           1863,             |  223,000
+           1865,             |  181,000
+           1867,             |  105,161
+           1870,             |  202,511
+           1871,             |  174,930
+          ================================
+
+     while the excess of births over deaths (in Great Britain
+     alone) amounted, in 1856, to 309,000. Between 1815 and 1870,
+     there emigrated from the United Kingdom to the United
+     States, 4,472,672 persons; to the British North American
+     Colonies, 1,391,771; to Australia, 988,423; to other points,
+     160,771; an aggregate of 7,013,637. (Statist. Journal, 1872,
+     115.) On the other hand, between 1861 and 1871, 543,015
+     persons either returned or immigrated to the United Kingdom.
+     It is estimated, (according to _Huebner's_ Jahrb. der
+     Volkswirthschaft und Statistik, 263 ff.; VIII, 222, and the
+     Rudolst. Auswandererzeitung) that in no year before 1844
+     were there more than 33,000 emigrants from Germany. On the
+     other hand, in
+
+         ====================================
+             _in_           |  _At least._
+         -------------------+-----------++---
+          1844,             |         43,000
+          1845,             |         67,000
+          1846,-            |         94,000
+          1847,             |        109,000
+          1848,-            |         81,000
+          1849,             |         89,000
+          1850,-            |         82,000
+          1851,             |        112,000
+          1852,             |        162,000
+          1853,             |        156,000
+          1854, (maxim.)    |        250,000
+          1855.             |         81,000
+          1856.             |         98,000
+          1857,             |        115,000
+          1858-61, (average)|          4,620
+          1866,             |        137,000
+          1867,             |        151,000
+                            |
+          By Hamburg and    |
+            Bremen alone--  |
+          1867-71, (average)|33,355 & 48,296
+          1872,             |57,621 & 66,919
+          1873,             |51,432 & 48,608
+          1874,             |24,093 & 17,913
+         ====================================
+
+     while the natural increase of population in Prussia alone
+     (1843-55) amounted to almost 150,000 per annum; in the
+     kingdom of Saxony (1834-49), to over 18,000; in
+     Austro-Germany and the five German kingdoms together,
+     305,000. (_Wappaeus_, Bevoelkerungsstatistik, I, 133.) In New
+     York alone, in 1852, 118,600 Germans arrived; in 1853,
+     119,500; in 1854, over 178,000. That, at present, emigration
+     is, on the whole, so much more frequent than formerly, is
+     accounted for by the largely improved means of
+     communication. However, it was estimated a century ago, that
+     Europe sent at least 100,000 persons per annum to the East
+     and West Indies. Between 1700 and 1719, an aggregate of
+     105,972 persons emigrated to the Dutch East Indies; between
+     1747 and 1766, 162,598. (_Saalfeld_, Gesch. des Hollaend.
+     Ostindiens, II, 189.) It should not be ignored, however,
+     that the readiness to forsake the fatherland, which only a
+     short time ago was so usual in Germany (in England, it
+     prevails chiefly among the Irish), justified the greatest
+     solicitude for the roots of German national life. How little
+     Germany really suffers from over-population, is shown
+     especially by the circumstance that, for instance, in
+     Prussia, it is precisely the most densely populated
+     districts to which immigration is largest. Compare _v.
+     Viebahn_, Zollverein. Statist, II, 242.
+
+     According to _C. Negri_, about 40,000 Italians emigrate
+     every year at present; and it is said that there are, in
+     Turkey, Egypt and Tunis, 70,000; in Peru, 14,000, and in
+     Buenos Ayres, 84,000 Italians living. (I, Jahresbericht der
+     Hamburg, geogr. Gesellsch., 1874.) In other Romanic and
+     Slavic countries emigration is as yet insignificant. On the
+     other hand, there were, in 1870, 214,574 native
+     Scandinavians in the United States.]
+
+     [Footnote 259-6: While the most active demand for labor, for
+     instance, existed in Australia generally, three government
+     ships carrying emigrants arrived: one with English
+     agricultural laborers, the second with former factory hands,
+     the third with Irish. The agricultural laborers found places
+     very rapidly a few days after their arrival; the factory
+     hands did only tolerably well, while of the poor Irish not
+     one-half could find anything to do, and became a burthen on
+     the benevolence of the public. (_Merivale_, Lectures on
+     Colonization and Colonies, II, 30 ff.)]
+
+     [Footnote 259-7: It is estimated that the first 21,200
+     settlers of New England brought about $1,000,000 with them.
+     (_Bancroft_, Hist. of the United States.) The 50,000
+     emigrants who came to Quebec in 1832 were estimated to be
+     worth $3,000,000. It is thought that German emigrants to
+     America, bring with them, on an average, 280 thalers, to
+     which must be added 40 thalers passage money. This seems
+     very high, while German estimates are generally too low,
+     because no emigrant has any interest to overestimate his
+     property, but frequently to underestimate it. Thus, for
+     instance, in 1848-49, 8,780 persons emigrated from Prussia
+     with 1,713,370 thalers of property, i. e., 195 thalers each.
+     (Amtl. Tabellen, f., 1849, I, 290.) It is said that between
+     1844 and 1851, 45,300 persons emigrated from Bavaria with
+     governmental consent, and that they carried with them
+     property to the amount of 19,233,000 florins; that is, 424
+     florins each. (Beitraege zur Statistik des Kgr. Bayern, III,
+     322 seq.) Here the average amount of means carried away by
+     emigrants seems to decrease; a sign that the mass of those
+     emigrating come from successively lower strata of the
+     population. (_Hermann_, Bewegung der Bevoelk., 26 seq.)
+
+     A still smaller amount of capital would suffice for the
+     purpose of emigration itself. Persons who settled in Canada
+     (1823) cost the English nation L22 per capita, which amount
+     provided them with cows, seeds, agricultural implements,
+     help in building, and food for twelve months. According to
+     the Edinburg Rev., Dec., 1826, only L15, 4s. were necessary
+     for the same purpose. If it be borne in mind that many of
+     these settlers afterwards caused five times as many
+     relatives to come over at their own expense, the necessary
+     outlay per capita would seem very small indeed; frequently
+     not more than one year's maintenance in the poorhouse would
+     have cost. Almost L1,000,000 are sent every year from the
+     United States through banks and emigration bureaus, by
+     emigrants, to the United Kingdom, to bring over their
+     relatives. (Statist. Journal, 1872, 386.)]
+
+     [Footnote 259-8: It is said that in Mecklenburg agricultural
+     labor has much deteriorated because the strong men emigrate
+     and because the old and children remain at home.
+     (_Bassewitz-Schumacher_, Comm. Bericht ueber die Verhaeltnisse
+     der laendl. Arbeiterklassen, 1873.)]
+
+     [Footnote 259-9: _J. S. Mill_, indeed, thinks that even
+     where there is a larger emigration of capital than of men,
+     the combined pressure which both exert on the natural forces
+     of the country emigrated from must become less. (Principles,
+     IV, ch. 5, 1.) Compare _Hermann_, loc. cit. 28 ff. _Hermann_
+     also shows very clearly how emigrants to America would
+     frequently like to return; but the expense of returning
+     deters them from the undertaking, and they manage to get
+     along by great effort, which, however, would have afforded
+     them a livelihood if they had remained at home. Staatsw.
+     Unters. II, Aufl. 480.]
+
+     [Footnote 259-10: Against real over-population, the
+     emigration of women would be much more effective than that
+     of men; and yet the emigration of the latter occurs much
+     less frequently in large numbers. Thus, between 1853 and
+     1858, 3,694 males emigrated from Saxony and only 2,609
+     females. Between 1866 and 1874, there were 1,754,231 male
+     immigrants to the United States, and only 1,147,446 females.
+     According to _Ruemelin_ (Allg. Ztg., December, 1865), the
+     large emigration from Wuerttemberg produced by the years of
+     scarcity--1850 ff.--left such a preponderance of women that
+     1/6 of all the young women who have reached a marriageable
+     age at present, would remain unmarried, even if all the
+     marriageable young men were to engage in matrimony. Thus
+     negative emigration does very little to cure the social
+     disease of involuntary celibacy.]
+
+
+SECTION CCLX.
+
+COLONIST EMIGRATION.
+
+All these dangers disappear when the portion of the nation which has
+emigrated continues economically connected with the body of the nation
+remaining at home. (Colonizing emigration.) Here emigration not only
+provides "elbow room" in the mother country, but there arises at the
+same time an increased demand for manufactured articles, an increased
+supply of raw material, by means of which an absolute growth of
+population is made possible.[260-1] England has hitherto enjoyed these
+advantages to the fullest extent, Germany scarcely at all. German
+emigrants to Russia, America, Australia, or Algiers, were, together with
+all they have and are, for the most part lost to their fatherland. They
+become the customers and suppliers of foreign countries, and frequently
+enough the competitors and even enemies of Germany.[260-2] [260-3]
+
+It might be very different if the stream of German emigration was
+directed towards German colonies for instance, as happened in later
+medieval times, towards the fertile but thinly populated parts of
+Hungary, towards the provinces of Austria and Prussia; perhaps, as List
+wished, towards those parts of Turkey which, God willing, shall yet
+constitute the inheritance of the German people. Thus, through the
+instrumentality of emigration, might a new Germany arise, which would
+directly or indirectly and necessarily ally itself to the old,
+politically, and at the same time constitute the surest bulwark against
+the danger from Slavic power.
+
+Politico-economically, this country might be utilized by Germany as the
+United States uses the Mississippi valley and the Far West, especially
+as concerns the exclusiveness of the use. It is true, that emigrants
+could be invited to these quarters in good conscience only when the soil
+had been prepared for them. They should find there, on their arrival,
+complete legal security, especially for the landed property to be
+acquired by them; likewise, at least, full personal, religious, and also
+commercial freedom.[260-4]
+
+It may be asked, whether there are places in the other quarters of the
+world adapted to German colonization in the higher sense of the word.
+These should of course be countries adapted to agriculture as practiced
+by the Germans,[260-5] with an easily accessible coast and provided in
+the interior with navigable streams. Here the Germans should be able not
+only to live together in large numbers, but the rest of the population
+should be inferior to them in political training and in national
+feeling. Otherwise, there would in time be danger of their losing the
+German character and feeling.[260-6] The difficulty of establishing
+German colonies in the southern temperate parts of Chili and Brazil
+would be aggravated by the very same causes which prevented the creation
+of a German navy for centuries; and they would almost certainly have to
+calculate on the jealousy of all other colonial powers and of the United
+States.[260-7] We should not forget that from Raleigh's time to the
+present, almost every speculation having for its object the founding of
+a colony, whether originating with individual capitalists or with
+joint-stock companies, has been, considered from a mercantile point of
+view, a failure. The fruits of new colonization are generally reaped in
+the succeeding generation; and such delay is scarcely in harmony with
+the ideas of our own times. Almost every settlement has had its critical
+period when the settlers almost despaired. This produced less harm in
+the 17th century; for they were for the most part compelled to
+persevere. In our day, they would probably disband and go in search of
+an easier life in colonies already existing. And yet, Germany must make
+haste if it would not soon see the last appropriate locality occupied by
+other and more resolute nations.[260-8] [260-9]
+
+     [Footnote 260-1: As _Torrens_ shows there is no kind of
+     trade that so much promotes production, or which is so
+     capable of growth as the exchange of the means of
+     subsistence and raw materials against manufactured articles.
+     The Budget: On Commercial and Colonial Policy, 1841 ff.]
+
+     [Footnote 260-2: Care should be taken not to allow one's
+     self to be misled here by relative numbers. In the United
+     States, the amount of imports was, from--
+
+     ===========================================================
+                 |_The British_|  _France._  | _Germany without_
+                 |  _Empire._  |             |   _Austria._
+     ------------+-------------+-------------+------------------
+     1840-41,    | $51,000,000 | $24,000,000 |    $2,450,000
+     1849-50,    |  85,000,000 |  27,600,000 |     8,780,000
+     1859-60,    | 138,600,000 |  43,200,000 |    18,500,000
+     ===========================================================
+
+     Hence, absolutely, the German exports increased in 19 years
+     only about $16,000,000; the French (without any emigration),
+     over $19,000,000; the English, more than five times the
+     German. Of the 30,633 emigrants who sailed from Bremen in
+     1874, only 72 did not go to the United States. (D. Ausw.
+     Ztg., 5 Jul., 1875.) The total exports of the United Kingdom
+     to its colonies amounted, 1840-44, to an average value of
+     L7,833,000; 1865-69, to L27,146,000; while those to foreign
+     countries amounted, during the same periods of time, to only
+     from L28,871,000 to L93,558,000. English colonial trade
+     amounted, in 1866, to L6 2s. per capita of the colonial
+     population; the trade with the East Indies, to only 9s. 7d.
+     per capita of the East Indian population. (Statist. Journal,
+     1872, 123 ff.)]
+
+     [Footnote 260-3: There has hitherto been little to rejoice
+     over in the condition of German emigrants. The greater
+     number of them had received so little education that they
+     were by no means in a way to oppose the weapons of attack of
+     Anglo-Americans. The glorious literature of their old home
+     scarcely existed for them. Almost the only national
+     peculiarity which they held to with any tenacity was the
+     disposition to a want of union among themselves. Hence they
+     were necessarily de-Germanized in a few generations, after a
+     toilsome and quarrelsome period of transition. How seldom,
+     even in Ohio, did German names occur in the list of public
+     officials, while in New York the number of German names on
+     the poor list is very considerable. The situation, however,
+     seems to have improved in modern times, and the national
+     coherency and political power of the mother country have
+     gone hand in hand with the revival of attachment on the part
+     of the emigrants to the land of their nativity. How
+     beautifully was this attachment manifested during the
+     Franco-Prussian war in 1870-71!]
+
+     [Footnote 260-4: Compare _Fr. List_, in the D.
+     Vierteljahrsschrift, 1842, No. IV. _Dieterici_, ueber Aus-
+     und Einwanderungen, 1847, 18.]
+
+     [Footnote 260-5: No Mosquito-coast!]
+
+     [Footnote 260-6: How tenaciously have the Germans held to
+     their nationality in Transylvania and the Baltic provinces,
+     and how rapidly they lost it in Pennsylvania!]
+
+     [Footnote 260-7: On emigration to Brazil, see _v. Tschudi's_
+     report of Oct. 6 to the Swiss parliament, 1860.]
+
+     [Footnote 260-8: Think only of the project of the Belgian
+     East Indian Company, which Austria could not carry out at
+     the beginning of the preceding century. Proposition by
+     _Froebel_ (loc. cit., 87 ff.) that England and Prussia should
+     together found a German colony in the valley of the La
+     Plata, to which _Wappaeus_ rightly objects, that there are
+     few places there in which peasant emigrants would like to
+     acquire land. (Mittel- und Suedamerika, 1866, 1027.)]
+
+     [Footnote 260-9: Compare _Wappaeus_, Deutsche Auswanderung
+     und Kolonisation, 1846.]
+
+
+SECTION CCLXI.
+
+STATE AID TO EMIGRANTS.
+
+The inquiry, What can the state reasonably do for emigration, must, of
+course, receive a very different answer according as there is question
+of merely negative (Sec. 259) or colonizing emigration (Sec. 262). To give the
+latter a proper impulse requires so great an outlay of capital and labor
+that it can be made only by the state; and in Germany, on a large scale,
+only by a union of several states. We must not here deceive ourselves.
+Emigrants will go uniformly where they have the nearest prospect of a
+comfortable future. Whether in emigrating they shall continue their
+connection with their old home, or whether their children shall be
+completely denationalized is a matter with which very few emigrants
+concern themselves; and considering the amount of education they
+generally possess, this need excite no surprise. Hence, if Germany would
+unite its departing children in a colony permanently German, and
+therefore new,[261-1] it would be necessary for it to offer them, at its
+own expense, at least the same advantages which they would find in older
+and fully established colonies. He who would reap should not endeavor to
+evade the sacrifice incident to the sowing.[261-2] Even great sacrifices
+in this direction would certainly be richly rewarded if properly made.
+Probably the outlay would never be directly returned to the national
+treasury; but there is all the more reason, on this account, that there
+should be an indirect return by the increase of duties and other
+indirect taxes.
+
+On the other hand, the costly assistance of the state in the case of
+merely negative emigration would, as a rule, be folly. Who would compel
+the children of the great national family, who necessarily or
+voluntarily remain faithful to the paternal roof, to pay tribute to
+those who turn their backs on the old home for ever? The wealthy
+especially who remain in the country have to put up with the
+disadvantage of paying higher wages for labor.
+
+Simple humanity requires that the state should not be blind to the
+movement of emigration, nor abandon it to all the risks of improvident
+liberty. Hence it should endeavor to remove the ignorance prevailing on
+questions of emigration. It should require personal and other guaranties
+that emigration agents are not simply dealers in men, and that the
+contracts made with ship-owners by emigrants are really performed. It
+should exercise a strict superintendence over the mode of transportation
+of emigrants, and see to it that its consuls accredited to America, etc.
+assist them by word and deed.[261-3] The legislation of Bremen is a
+model in this respect, and has contributed largely to make that port a
+principal outlet for German emigration.[261-4] The provisions of the
+laws of October 1, 1832, of July 14, 1854, of July 9, 1866, etc.,
+embrace among others the following: Only a citizen of Bremen, of good
+repute, and who has given security to the amount of five thousand
+thalers, shall be entitled to receive and contract with emigrants for
+passage; to each passenger shall be allotted a space of at least twelve
+square feet of surface and six feet high; provision shall be made for
+the longest possible time of passage; for instance, for thirteen weeks
+for a voyage northerly from the equator. At the same time, the
+ship-owner is required to give security that in case of accident to the
+vessel, disabling it in such a way as to unfit it to continue the
+journey, he shall return the fare of all passengers saved, and pay them
+an additional sum of from twenty to forty thalers, according to the
+length of the passage, to cover the cost of salvage, to support
+themselves for the time being, and enable them to continue their
+journey. The entire matter is controlled by a rigid system of
+ship-investigation, and is under the superintendence of a board of
+officers, made up of senators and members of the chamber of
+commerce.[261-5] Among English provisions[261-6] particularly worthy of
+imitation is that which requires the government agents in Canada, etc.
+to furnish information gratis to emigrants. But to keep their clients
+from the practice of idling about, so ruinous to themselves, the agents
+refuse aid to all emigrants who, without sufficient reason, remain over
+eight days in the harbor.
+
+     [Footnote 261-1: Much might be gained if German emigrants to
+     the United States would concentrate themselves in one state,
+     and thus soon make it a German state. For many reasons
+     Wisconsin is best adapted to such a purpose.]
+
+     [Footnote 261-2: Provision made to put the colonists in
+     possession of lands well explored and surveyed, to have the
+     preliminary labor performed by persons already
+     acclimated--labor which is the most injurious to health, the
+     clearing of the land, the construction of
+     buildings--purchasing the agricultural implements at
+     wholesale, etc.]
+
+     [Footnote 261-3: _v. Gessler_ (Tuebinger Zeitschr., 1862, 398
+     ff.), recommends the establishment of an "asylum" in the
+     neighborhood of the locality where the emigrants are likely
+     to settle. In this asylum they might, during the time
+     immediately following their arrival, find shelter, food,
+     medicines, etc., and all the implements necessary to a
+     settler, at cost. The institution might be established
+     either by the home government, by a humanitarian emigration
+     society, or by a land company in the colony itself.]
+
+     [Footnote 261-4: There passed
+
+     ================================================================
+                             |   _In 1854._      |     _In 1867._
+     ------------------------+-------------------|-------------------
+     Through Bremen,         | 76,875 emigrants. |  73,971 emigrants.
+     Through Hamburg,        | 50,819      "     |  42,845      "
+     (Of these directly only | 32,310)     "     | (38,170)     "
+     Through Havre,          | 95,849      "     |  22,753      "
+     Through Antwerp,        | 25,843      "     |  12,086      "
+     Through other ports,    |  2,50       "     |
+     ================================================================
+
+     The trade of Bremen has, as the result of this
+     transportation of emigrants, grown just as that of the
+     Italian sea coast cities by the transportation of the
+     crusaders in the Middle Ages. Here, as in so many other
+     cases, genuine philanthropy, in the long run, moves nearly
+     parallel with real economic advantage. And in fact, the
+     Statuta civitatis Messiliae of 1228 (IV, 24 seq., 28, 30)
+     contain provisions in relation to the crusaders which
+     forcibly remind one of the modern Bremen laws. Similarly in
+     Venice: Compare _Depping_, Histoire du Commerce entre le
+     Levant et l'Europe, 284; II, 313 seq.]
+
+     [Footnote 261-5: Similar provisions in Hamburg, June 3,
+     1850, revised February 26, 1855; in France, January 15,
+     1855; in the United States of America, March 2, 1855.
+     Compare _Huebner_, Statistisches Jahrbuch, 1856, 289 ff.
+     However, there were serious complaints, a short time since,
+     concerning German emigrant transportation, especially of the
+     treatment of women: Novara-Reise, III, 49 ff. Ausland, 1863,
+     No. 8. One of the principal wants is that emigration agents
+     should be held responsible for detaining their clients a
+     long time and at a heavy expense, in places of embarkation.]
+
+     [Footnote 261-6: Compare _McCulloch_, Commercial Dictionary,
+     v. Colonies, 9 George, IV., ch. 21. The law of June 30,
+     1852, carries solicitude for the lot of emigrants very far.
+     It embraces 91 articles and 11 additions. Everything is most
+     minutely provided for, even the form of the passage ticket.
+     The old law of 1803, drawn up in accordance with the advice
+     of the Scotch Highland Society, was apparently devised in
+     the interest of the emigrants; but it contained a multitude
+     of minute requirements suggested by a desire on the part of
+     the advisers to restrict emigration. Hence it was, in
+     practice, by consent of both parties, always evaded. Compare
+     _Lord Selkirk_, Observations on the present State of the
+     Highlands of Scotland, with a View of the Causes and
+     probable Consequences of Emigration (1805). Edinburgh R.,
+     December, 1826, 61; January, 1828.]
+
+
+SECTION CCLXII.
+
+EMIGRATION AND PAUPERISM.
+
+As a very rare exception, an emigration suddenly undertaken, well
+directed and on a very large scale, may be made to constitute the
+efficient means preparatory to the abolition of pauperism. Where, for
+instance, by reason of the subdivision of the land into extremely small
+parcels, farming on a diminutive scale has come to preponderate; where
+the popular home-industries have been reduced to a miserable condition
+by the immoderate competition of great foreign manufacturers and
+machinery, the hopelessness of the situation consists principally in
+this: that every improvement made must be preceded by a concentration of
+the forces of labor, and their combination with the powers of capital;
+which for the moment renders a great number of those who have been
+laborers hitherto entirely superfluous. That is, to raise the level of
+the whole public economy and provide a decent livelihood for 10,000 men,
+it would be necessary to condemn another 10,000 to death from
+starvation! Most political doctors recoil at the thought of this
+transition-crisis. They content themselves with palliatives which, in
+the end, cost much and afford no help. The simplest remedy here would
+evidently be to cause those workmen who have become superfluous to
+emigrate at the expense of the state. Next, the necessary economic
+reforms should be carried out at home and the return of the evil
+prevented by rigid legislation. The more sudden this emigration is, the
+nearer it comes to taking place, so to speak, all at once, the less
+possible it is that the increase of population should keep even pace
+with it. The condition of the proletarians who remained at home could
+not fail to have a favorable influence in this respect; for nothing
+leads men so much into contracting reckless marriages as the total
+absence of any prospect of amelioration of their condition in the
+future.[262-1] [262-2]
+
+     [Footnote 262-1: Many of the most competent thinkers have
+     designated such emigration as the only remedy for the
+     over-population of Ireland. Compare _Torrens_, The Budget,
+     passim; _J. S. Mill_, Principles, II, ch. 10; Edinburg Rev.,
+     January, 1850. _Lord Palmerston_ retained the wealthiest
+     farmers on his estates who were intending to emigrate, by
+     causing the poor ones to emigrate at his own expense. The
+     independent emigration of the Irish at their own expense
+     which has been going on for some years, might become an
+     incalculable gain to the English nation. By the poor law, 4
+     and 5 William IV., c. 76, the English parishes are
+     authorized, with the approval of the central poor board, to
+     assist emigration to the extent of L10 per capita. Between
+     1849 and 1853, they assisted 1,826 poor persons on an
+     average per annum, who received for that purpose L10,352.
+     (_Kries_, Engl. Armenpflege, 1863, 30.)]
+
+     [Footnote 262-2: It is an interesting thought of _R. von
+     Mokl_, Polizeiwissenschaft, I, 130, that real
+     over-population, when no one was willing to emigrate of his
+     own accord, might be remedied by a species of
+     emigration-conscription of young adults by the drawing of
+     lots, the right of substitution, etc. The ancient Italians
+     sometimes realized this idea by the _ver sacrum_. Similarly
+     in many cases of Greek emigration, by the worship of Apollo:
+     Compare _W. H. Roscher_, Apollon und Mars (1873), 82 ff.]
+
+
+SECTION CCLXII (_a_).
+
+TEMPORARY EMIGRATION.
+
+Besides definitive emigration, temporary emigration deserves special
+consideration. If the wages of labor are much lower in one locality than
+in another which is easily accessible,[262a-1] the workmen of the former
+place resolve much more readily on periodical migrations thither than on
+permanent settlements in the place. It is especially the difficult work
+of harvesting, where farmers are pressed for time,[262a-2] and that of
+house-building,[262a-3] which are undertaken by these birds of passage;
+and mountainous regions, with their limited agriculture, their late
+crops and their longing look into the far-off which is found united with
+a deep-rooted attachment to home, are the places whence they
+come.[262a-4] When their home is distinguished in certain branches of
+labor, they are wont to carry these with them abroad, and in such case
+their sojourn away from home is generally longer.[262a-5] The shorter
+and the more vagabond-like their migration, the less apt is it to be an
+economic blessing to the wanderers themselves.[262a-6] There must
+necessarily result, as a consequence, a species of equalization between
+the rates of wages in the country receiving and the country furnishing
+them.[262a-7] This may be a great national misfortune for the latter,
+inasmuch as its working class may thus be forced to a lower standard of
+life, and all their providence and self-control in the founding of a
+family be made fruitless by the arrival of less capable
+foreigners.[262a-8] The hatred existing among the members of a higher
+class for parvenus from a lower corresponds in this respect to the
+mutual hatred of two countries for the natives of the other, (_v.
+Mangoldt_.) Considered from the point of view of the country furnishing
+these migratory classes, temporary emigration has this advantage over
+definitive emigration, that the persons leaving the country always
+maintain their economic connection with their home.[262a-9] The most
+striking example of this is afforded by those merchants, ship-owners,
+etc. who are, so to speak, pioneers in foreign markets for Switzerland
+and Bremen. Only there is always danger of a crisis when the usual flow
+is suddenly checked.[262a-10]
+
+     [Footnote 262a-1: The locust-like emigration from Ireland to
+     England takes three principal directions: from Dublin to
+     Liverpool, from Cork to Bristol, from the North-East to
+     Scotland. This even before 1835. (_Berkeley_, Querist, Nr.,
+     526 ff.) Great increase since the fare has been reduced on
+     the steamers to from 4 to 6 pence. (Edinburg Rev., XLV, 54
+     ff.; XLVII, 236 ff.)]
+
+     [Footnote 262a-2: Thus mowers emigrate from Wuerttemberg and
+     the Odenwald into the valley of the Rhine; inhabitants of
+     the Alps into the South German plains, and the inhabitants
+     of the sandy and healthy localities into the Hanoverian
+     marshes and Holland; inhabitants of the Brabant into France.
+     Many go from Waesland, 5 and 6 miles distant from Holland,
+     to sow a field manured and plowed by the owner with flax,
+     and afterwards to weed and harvest it, etc., and at their
+     own expense. (_Schwerz_, Belg. Landwirthschaft, II, 105.)
+     Even in the sixteenth century, 20,000 Frenchmen went every
+     year to Spain in harvest time. (_Boden_, Responsio ad
+     Paradoxa, 49.) Migration of the East-goers (_Ostgeher_) from
+     Wartebruch as far as Poland and Russia (_Fruehling_, N.
+     Landwirthsch., Ztg., 1870, 451 ff.) Galicians go into the
+     Polish plains, and Poles into the Prussian low country (_v.
+     Haxthausen_, Laendl. Verfassung, I, 99); Russians from the
+     populous district of Oreland Poltawa etc. into the Southern
+     steppes (_Kohl_, Reise, II, 118), and also out of Northern
+     woody districts to Jaroslay, where they give themselves to
+     the cultivation of the fields (_v. Haxthausen_, Studien, V,
+     198); Gallegos into the Portuguese wine region; inhabitants
+     of the Abruzzi into the Roman Campagna (_Galiani_, Della
+     Moneta, V, 4); Calabrians to Naples. In Tuscany, almost the
+     entire cultivation of the unhealthy plains is done by the
+     inhabitants of the mountains. Even in Africa migrations by
+     the _fulahs_ into the plains before them (_Ritter_,
+     Erdkunde, I, 349); of the inhabitants of the cataracts of
+     the Nile into Lower Egypt, where they remain from six to
+     eight years, and where they are in great favor because of
+     their honesty as gate-keepers and pack-carriers.
+     (_Burckhardt_, Travels, 147.)]
+
+     [Footnote 262a-3: In Paris, a great many masons and
+     carpenters from Lothringen and Limousin, who return after
+     from 6 to 7 months. The number of these migratory building
+     workmen is estimated at over 40,000. (_Wolowski._) Thus
+     thousands of brick makers migrate from Vicentini and Friaul
+     into Austria and Hungary; from the vicinity of lakes Como
+     and Lugan, masons have been spread over all Italy, and this,
+     it is said, has been going on a thousand years, (_v.
+     Rumohr_, Reise in die Lombardei, 135 ff.) Yearly migration
+     of about 3,000 brick finishers from Lippe-Detmold, which is
+     very opportunely directed by the government. (_F. G.
+     Schulze_, Nat. Oek., 606.)]
+
+     [Footnote 262a-4: In the Apennines, almost every valley has
+     its own migration-district. Thus the Modeneses go to
+     Corsica, and the Parmesanes to England. The migration from
+     the German Tyrol amounts yearly to between 16,000 and 17,000
+     men. (_v. Reden_, Zeitschrift fuer Statistik, 1848, 522.) In
+     the Canton of Tessin, over 11,000 passes are given for this
+     purpose yearly; that is, to more than 10 per cent. of the
+     entire population. The majority go to Upper Italy, but some
+     go to Russia. The cheese-makers, pack-carriers and dealers
+     in chestnuts, migrate from fall to spring; masons, glaziers,
+     etc. in summer.]
+
+     [Footnote 262a-5: Savoyards as "shoe-blacks" etc. in Paris
+     (_L. Faucher_, La Colonie des S. a Paris); Portuguese, as
+     peddlers and pack-carriers in large cities in Brazil
+     (_Jahn_, Beitr., 33); Gallegos in the large cities of Spain
+     and Portugal as water-carriers; Bergamasks, in Milan and
+     Genoa as pack-servants, where they constitute a kind of
+     guild; the inhabitants about Lake Orta (south of the Lago
+     Maggiore) as waiters, and hence the inns there are very
+     good; Bohemian musicians, who carry on quite a different
+     business at home during the winter; Grisons, as
+     confectioners all over Europe. Many villages obtain from
+     this source 20,000 florins. (_Roeder und Tscharner_, C.
+     Grauebundten, I, 337.) There are at this time about three
+     million people from China, and almost exclusively from the
+     conquered and oppressed province of Fokien, in Farther
+     India, where they execute the finer kinds of labor.
+     (_Ritter_, Erdkunde, IV, 787 ff.)]
+
+     [Footnote 262a-6: In Tessin, the fields are tilled, and
+     badly enough, by old men, women etc. The men spend in the
+     taverns and in all kinds of vice what they saved during the
+     working season (_Franscini_, C. Tessen, 156 ff.) Those who
+     migrate from the vicinity of Osnabrueck into Holland are said
+     to bring back with them yearly about 100,000 thalers; but
+     their abstinence from warm food, their bivouacking etc., to
+     which they have recourse for the sake of frugality, lays the
+     germs of numberless diseases. (_J. Moeser_, P. Ph, I, 14 ff.)
+     There are serious complaints of the demoralization of women
+     produced in England by the gang-system, in which roving
+     workmen, mostly Irish, are employed under a gang master to
+     perform contract work. (_L. Faucher_, Etudes sur l'Angleterre,
+     2, ed. I, 383, ff.)]
+
+     [Footnote 262a-7: Hence, for instance, Osnabrueck complained
+     bitterly of the migration to Holland, because it raised the
+     wages of servants. However, the absolute freedom of removal
+     from one place to another produces not only a leveling of
+     wages, but also an absolute rise of the rate of wages, as
+     may be seen by contrasting it with the _glebae adscriptio_.
+     Compare _supra_, Sec. 160.]
+
+     [Footnote 262a-8: Great danger to the national life of the
+     English people by immigration from Ireland. The Irish
+     laborers, bare-footed and ragged, restricting themselves to
+     potatoes and whisky, have carried their disgusting habit of
+     living in cellars, and of congregating several families
+     together into one room, even with pigs as companions, over
+     to England. (_Th. Carlyle_, On Chartism, 28 ff.; _G. C.
+     Lewis_, The Condition of the Irish in England.) It is said
+     that, in 1819, in London alone, there were over 70,000
+     Irish; in 1826, over 119,000. (Edinb. Rev. XLVII.) Even _J.
+     S. Mill_ would have no hesitation to prohibit this
+     emigration to prevent the economic contagion spreading to
+     English workmen. (Principles, I, ch. 14, 6.) Fortunately now
+     Irish emigration has taken the direction of America, where
+     there is more room. Whether in future Chinese emigration may
+     not greatly endanger the condition of the lower classes,
+     first in America and Australia, and then indirectly in
+     Europe, _quaere_. It is estimated that between 1856 and 1859,
+     78,817 Chinese emigrated to the United States. In Australia,
+     to deter them from immigration, a tax of L10 per capita has
+     been imposed on their entry into the country. (_Fawcett_,
+     Manual, 107.)]
+
+     [Footnote 262a-9: Of the East Indian coolies who had gone to
+     Demarara, 469 returned in September, 1869, after having
+     saved in five years, L11.235. (_Appun_, Unter den Troppen,
+     II, 34).]
+
+     [Footnote 262a-10: The Grisons had, during the 17th century,
+     accustomed themselves to living some time in the Venetian
+     territory as shoemakers, 1,000 at a time. The blow was all
+     the more severe when Venice, in 1766, expelled all the
+     families. Since that time most of the Grison confectionaries
+     in the principal cities of Europe have had their origin.
+     (_Roeder und Tcharner_, C. Graudbundten, I, 56.) The practice
+     of engaging mercenaries as troops was of great assistance,
+     especially in the interior of Switzerland. During the war of
+     1690 ff., there were nearly 36,000 Swiss hirelings in the
+     French army. Shortly before 1789, even during the period of
+     peace in France, Italy, Spain and Holland, their number may
+     be estimated to have been at least 30,000. (_Meyer v.
+     Knonau_, Gesch. der Schweiz. Eidgenossenschaft, II, 104,
+     464.) No wonder, therefore, that the cessation of the Swiss
+     guards caused a frightful crisis. Expulsion of the
+     Tessinians from Lombardy, 1853.]
+
+
+SECTION CCLXIII.
+
+CONCLUSION.
+
+That the economy of no nation can continue to grow _ad infinitum_ is, in
+general, as easy to believe[263-1] as it is difficult to point out with
+a specification of particulars what are the limits which cannot be
+exceeded. This would be possible first in the case of agriculture. Here
+there are points beyond which every man practically versed in the art
+can see, that an increase of the gross product must be attended by an
+absolute decrease in the net product.[263-2] But even supposing that a
+people had reached this point in their entire agriculture, they might
+still carry on industries, commerce, perform personal services for other
+nations, and obtain remuneration therefor in the means of subsistence
+and manufactured articles. If our nation has once entered on this path,
+it is evident that every improvement of its industry, every advance made
+by foreign countries in the production of raw material, manufactures and
+the consumption of services must result in a growth of our economy.
+David Hume was of opinion that industrial preponderance was in a
+necessary and continual state of transition from one country to another.
+A very highly developed state of industry made a country rich in money
+but enhanced the price of the means of subsistence, and the rate of
+wages; until finally it became impossible for it to compete in the
+markets of the world with cheaper countries, and industry, in
+consequence, emigrated to these.[263-3] But it is easy to see how all
+such limits are extended by the modern improvements in transportation,
+and the consequent facilitation of importation; and how much the remedy
+mentioned in Sec. 198 has gained in importance by the modern advances made
+in machinery and the preponderance in so many respects of machine over
+hand labor.[263-4]
+
+But here it is necessary to distinguish between the "applied" and only
+practical political economy, and "pure political economy." (Sec. 217.) A
+development thus continued would be attended with great difficulty even
+if the whole world constituted one great empire. We need only mention
+Austria, where some provinces have remained in a very backward, almost
+medieval condition, while others have for a long time manifested the
+symptoms of over-population. How much more in different states. An
+uncivilized nation will frequently not care to increase its consumption
+of our manufactures, if to do so it becomes necessary to carry on its
+agriculture more industriously. Another nation that has already tasted
+of the fruit of the tree of economic knowledge may not be satisfied with
+the mere production of raw material forever. In time it may want to
+carry on commerce and industry itself, and hence consider the breaking
+of its commercial course with us as a species of emancipation from us.
+And, further, how if other highly cultivated nations should compete with
+us in the markets of countries which produce merely raw material? if
+such rivals should wage war in which each party should harm his
+adversary for the mere love of doing harm, and not unfrequently in
+opposition to its own economic interests? I know of no period the
+development of which has not been attended by such disturbances, and
+hence they cannot be said to be entirely unnatural.[263-5]
+
+And even at home and among highly civilized nations, there are wont to
+be many obstacles to advancement on this road of progress. Every great
+economic change is connected as cause and effect, with a variety of
+political, social and other reformations which are never accomplished
+without great hardship and hesitation.[263-6] Where the division of
+labor has been developed to any extent, the formerly existing
+circumstances which must be surrendered for the sake of progress are
+generally synonymous with the interests of some class. This class
+opposes the improvement, and a struggle becomes necessary to carry it
+out. But under certain circumstances, a long delay in effecting a
+necessary reform may paralyse or poison the minds of the people to such
+an extent that they may afterwards have neither the will nor the power
+to successfully advance. This is the most important exception to the
+rule laid down in Sec. 24. The happier the ethnographic and social
+composition of a people, the better the national spirit, the more
+skillful the form of its constitution, the less frequently will it
+happen.[263-7] All this is true especially of over-population and the
+plethora[263-8] of capital which so easily injure the morality of a
+people. New inventions also, by means of which the limits of the
+possibility of production may be incalculably extended can be expected
+only from nations where there is no intellectual decline.[263-9]
+
+     [Footnote 263-1: There are, indeed, different opinions on
+     this matter, and they were preponderant during the second
+     half of the eighteenth century. Compare _Condorcet_, Tableau
+     historique, des Progres de l'Esprit humain, especially
+     Epoque X, in which he treats of future progress.
+     Nevertheless, he obscurely alludes (Oeuvres, VIII, 350) to
+     a time when no further increase of population should take
+     place. _Malthus_, Principle of Population, III, ch. 1,
+     thoroughly demonstrates that in regard to the great
+     prolongation of human life which he foresaw, the idea of the
+     indefinite and that of the infinite were confounded with
+     each other.
+
+     In that young and vigorous country, the United States of
+     America, we find a popular school which, to say the least,
+     hints at the principle of infinite growth. Thus, for
+     instance, _Peshine Smith_ (Manual of Political Economy, New
+     York, 1853) teaches that the means of subsistence consumed
+     at the place of production are not destroyed, but may return
+     just as much to the soil in the form of manure as they had
+     previously drawn from it (ch. 1). Capital has a tendency to
+     increase more rapidly than population (ch. 6). The rate of
+     wages has a tendency to increase with the increase of
+     population (ch. 5). Mechanical progress increases the value
+     of human labor and causes that of capital to decline
+     relatively (ch. 3). He reverses, with _Carey_, Ricardo's law
+     of rent (ch. 2).
+
+     _Carey_, also, relying on the assumption that more fertile
+     land is brought under cultivation as civilization advances,
+     allows us to see no limits whatever to this growth. (Past,
+     Present and Future, ch. 3.) Still more clearly is the
+     principle of unlimited and continually accelerated growth
+     laid down in his Principles of Social Science, I, 270.
+     _Carey_ illustrates this principle by means of the example
+     of the continually accelerated motion of a falling body,
+     without noticing the practical _ad absurdum deductio_
+     involved in it, that at the end of the thousandth second a
+     falling body reaches a velocity of 1,000,000 feet. (loc.
+     cit., 204.) But even in England, at present, we find such
+     thoughts at times. _Banfield_, for instance, can scarcely
+     understand how the relative rates of wages, interest and
+     rent can decrease, except by an increase of their absolute
+     amounts. See his Organization of Industry, passim. And so
+     _v. Prittwitz_ entertains the most rosy-colored hopes. He
+     has no doubt that all governments which are still bad will
+     see the error of their ways and correct them. (Kunst reich
+     zu werden, 79.)
+
+     The growth of capital and even of human wealth in general is
+     capable of indefinite increase (81). The rate of interest
+     would sink almost to zero if so much capital were
+     accumulated that no "undertakers" could be found who care to
+     use it (305). Large farming will entirely cease in the
+     future (307), and when the system of railroads is entirely
+     completed, the whole earth will present the appearance of
+     one immense park (29). He would allay all fear concerning
+     the exhaustion of combustible material by pointing out the
+     possibility consequent upon improved means of communication,
+     that a great many of the inhabitants of the colder regions
+     of the earth might migrate in winter to a warmer climate
+     (21). At the same time, artesian wells might be made to
+     bring to the surface the internal heat of the earth, or
+     metallic plates connected with the wings of a windmill,
+     might be made to generate heat by their friction on one
+     another (22). See the same author's Andeutungen ueber
+     kuenftige Fortschritte und die Graenz en der Civilization, 21
+     Aufl., 1855.]
+
+     [Footnote 263-2: According to Sec. 165, we might say: where the
+     product of the workman last employed is not sufficient to
+     meet his own wants. Thus _J. B. Say_ says that only that can
+     be considered a product, the utility of which is at least
+     equal to its cost. He makes use of the example where a three
+     days' journey is necessary to obtain the food requisite for
+     one. As the limits of production he gives the following: too
+     few human wants; too costly methods of production; too high
+     taxes, natural obstacles created by infertility or too great
+     distance. (Traite I, ch. 15. Cours pratique, I, 349.)]
+
+     [Footnote 263-3: _D. Hume_, Discourses, No. 3, On Money.]
+
+     [Footnote 263-4: England is especially well situated in this
+     respect, in consequence of its excellent commercial position
+     and its surplus of the principal auxiliary products, such as
+     coal, iron, etc. Should the coal-beds of such a
+     manufacturing country be ever entirely exhausted, it is
+     scarcely possible to see, from our present point of view,
+     how the most rapid and most frightful decline of its
+     national economy could be averted! Compare the opening
+     address before the British Association, by Armstrong, at
+     Newcastle (1863), who prophecies the exhaustion of the
+     English coal-beds in 212 years at the rate at which coal had
+     been consumed during the eight preceding years. According to
+     the report of the royal committee on the coal question
+     (1871, vol. III), Great Britain has still attainable
+     deposits, that is 4,000 feet deep, 90,207,000,000 tons of
+     coal in its coal beds already known; and in beds not yet
+     worked, 56,273,000,000 tons. Compare, also, _Jevons_, The
+     Coal Question (1866). It is estimated that the most
+     productive French coal-field will be exhausted in 100 years.
+     (_M. Chevalier_, Rapport du Jury international de 1867,
+     57.)]
+
+     [Footnote 263-5: Even _J. S. Mill's_ views on the
+     probability of perpetual peace on earth are altogether too
+     rosy: Principles III, ch. 17, 5. This is still truer of
+     _Buckle_. History of Civilization, I, ch. 4. In the modern
+     state-system of Europe, there is wont to be in each
+     generation, a peaceful half and a warlike one, which follow
+     each other as ebb and flow. I need only mention the
+     preponderance of peace between 1714 and 1740, between 1763
+     and 1793, and between 1815 and 1853. It happens frequently
+     that at the close of the period of peace, intelligent and
+     noble but unhistorical and therefore short-sighted minds
+     begin to dream of perpetual peace. Even a man like _Dohm_
+     (Ueber die buergerliche Verbesserung der Juden, 227 seq.)
+     expected, in 1785, that considering the size and quality of
+     armies, and the mutual knowledge of all countries of one
+     another, that instead of actually waging war, nations might
+     send to each other well authenticated statements of the
+     strength, for instance, of their navies and of the sums
+     necessary to maintain them for a number of years.]
+
+     [Footnote 263-6: The Mongols saw the abandonment of their
+     nomadic life in so gloomy a light that they seriously
+     thought of turning all China with its countless human beings
+     into pasture-land! (_Gibbon_, History of the Roman Empire,
+     ch. 34.)]
+
+     [Footnote 263-7: It is a fact characteristic of the history
+     of England, that Norman supremacy and afterwards bondage
+     were wiped out so gradually that contemporary historians
+     have nothing to say of the transformation. (_Macaulay_,
+     History of England, ch. 1.) Repeal of the corn laws
+     _vis-a-vis_ of the most recent industrial advance of the
+     country.]
+
+     [Footnote 263-8: Even _Ricardo_ says that in a highly
+     civilized country the continual making of savings is by no
+     means desirable. Carried to an extreme, saving would lead to
+     the equal poverty of all. (Principles, ch. 5.)]
+
+     [Footnote 264-9: The _Beccaria_, Economia publica I, 3, 31,
+     teaches that the limits of population are to be found at the
+     point where agriculture cannot be made to yield an
+     additional increase of products, and where foreign countries
+     do not offer any more a counter value of their products in
+     exchange for the manufactured articles and the services to
+     be furnished them. Similarly, _Buesch_, Geldumlauf III, 7;
+     otherwise, indeed, V, 15, in which, in opposition to _Adam
+     Smith_, it is claimed that the work to be performed by one
+     nation for others has no limits which cannot be exceeded.
+     _Steuart's_ theory of the limits to the production of every
+     commercial nation: Principles, I, ch. 18. _Lauderdale_,
+     Inquiry, ch. 5, 274 ff., says categorically, that all wealth
+     which is produced by the transformation of raw material
+     depends on the production of such raw material, and of the
+     means of subsistence necessary for the support of the labor
+     employed in such transformation. Excellent investigations by
+     _Malthus_ in the additions (1817) to the Essay on the
+     Principles of Population, II, ch. 9-13. Compare _Roscher_
+     Nationaloecon. des Ackerbaues, Sec. 162. As early a writer as
+     _Mirabeau_, Philosophie rurale, ch. X, was of opinion that a
+     country whose industries were on as large a scale as those
+     of Holland, dispersed its people indeed over the whole
+     earth, made them independent at home, but almost destroyed
+     their nationality.]
+
+
+SECTION CCLXIV.
+
+THE DECLINE OF NATIONS.
+
+That, after a whole nation has reached the zenith of its prosperity, it
+is subject to old age and to decline, and cannot avoid them, is in
+general, a proposition susceptible neither of proof nor
+refutation.[264-1] This uncertainty is practically very useful, for were
+it otherwise, mediocre statesmen might become either discouraged or
+indifferent. However, we should not assume, as so many do,[264-2]
+without proof, the earthly immortality of nations, provided only they
+observe a proper diet; nor call the science of the physiology or
+medicine of nations a chimera, simply because it confesses that it knows
+of no preventive against such old age. It has doubtless been the fate of
+many nations to die, that is, not precisely to be destroyed--just as in
+the physical world, not a particle of matter is lost--but to see their
+former national personality disappear, and themselves continue to exist
+only as component parts of some other nation.[264-3] This phenomenon,
+indeed, finds its analogon in every thing that is human, but seems to
+contradict a law of nature which very widely prevails, viz.: that it is
+easier to advance in a certain direction in proportion to the distance
+gone over in it already.[264-4]
+
+The problem of decline, however, is solved by the enervating influence
+of possession and power, an influence which only a select few among men
+can escape. And yet to every external advance there must be a
+corresponding advance of the interior man, else there is a fall great in
+proportion to the height before attained. The greater number take their
+ease once they have attained the object of their ambition. I need only
+cite the example of the posterity of those men who have grown rich by
+unusual exertion. Success itself generates vanity and a feeling of false
+security, the latter especially, inasmuch as that is expected from the
+whole community, from the state for instance, from others generally,
+which should be the fruits of one's own vigilance and one's own
+endeavors. It should not be forgotten that the nation is made up of
+individuals.[264-5]
+
+In addition to this there is the striving after the new for the sake of
+novelty; a striving promotive of progress in itself, and without which
+the full development of the forces of civilization would probably not be
+possible. But if the genius of no nation is possessed of infinite
+capacities, it must happen, at last, that, in case the best has been
+attained, and the demand for novelty continues, men will go over to that
+which is worse. Even very great competition has here a dangerous
+influence, since it raises the great mass of the incompetent to the
+dignity of judges, and endeavors to seduce them by illicit means; in the
+arts, for instance, sensuousness is made to take the place of the
+feeling of the beautiful.[264-6]
+
+There is, further the process of undeceiving, inseparable from the
+prosecution of any ideal purpose. Such ideals have always very much of
+human weakness in them. The great crowd of ordinary men follow, as a
+rule, their material interests. Only occasionally do they rise to the
+height of ideal things; and here we discover the brightest points in
+history. Later there comes uniformly a period of disenchantment and of
+exhaustion after the debauch is over. When all the ideals accessible to
+the nation have been destroyed or outlived, nothing can be done to
+awaken the masses from their slumber, or induce them to shake off their
+inactivity.
+
+As a rule, the influences which have accelerated a nation's progress and
+brought it to the apogee of its social existence end in precipitating
+its ruin by their further action. Every direction which humanity takes
+has almost always something of evil in it, is limited in its very
+nature, and cannot stand its extremest consequences.[264-7] All earthly
+existence bears in itself, from the first, the germs of its decay.
+
+However, to calm the feeling of human liberty, we may boldly assert that
+there never was a nation remarkable for its religiousness and morality
+which declined so long as it preserved these highest of all goods; but
+then no nation outlived their possession.
+
+     [Footnote 264-1: Even in the case of individuals, that death
+     is necessary is not susceptible of absolute demonstration;
+     but no one doubts it, because of the experience so
+     frequently repeated; an experience, however, which cannot be
+     had in the same degree in the case of whole nations.]
+
+     [Footnote 264-2: Remarkable controversy between _Hume_ and
+     _Tucker_. The former had charged the latter with holding the
+     opinion that industry and wealth must necessarily continue
+     to advance indefinitely; and yet all things had in them the
+     germs of decay. _Tucker_, on the other hand, remarked that
+     all he wished to say was that no one could point out where
+     progress must necessarily cease. All political bodies like
+     all natural bodies might decay; but it is not necessary that
+     they should. With good laws and morality they would become
+     more vigorous with increasing age. A great deal depended
+     here on the more general distribution of property, on the
+     assurance that industry would meet with its reward, and on
+     the removal of the principal defects in the English
+     electoral system. (Four Tracts, 477 seq. Two Sermons, 30.)
+     Most political economists are of the same opinion; thus
+     _McCulloch_, Principles, II, 3. See, however, the last two
+     sections in _Ferguson_, History of civil Society.]
+
+     [Footnote 264-3: We assume that a new nation has arisen,
+     when, after the disappearance of an earlier and high
+     civilization, combined with the taking up of new
+     ethnographic elements, we perceive anew the easily
+     recognizable symptoms of youthful immaturity.]
+
+     [Footnote 264-4: Expressed in the domain of religion in the
+     words of the Savior: _Matth._, 25, 29. But at the same time
+     the equally well-known expression in _Luke_, 12, 48, must be
+     fulfilled. Compare _H. Brocher_, L'Economie monetaire, 1871,
+     25 ff.]
+
+     [Footnote 264-5: Schools of art are generally ruined by
+     mannerism. Of the two great means of education in art, the
+     study of nature and the study of classic models, the latter
+     is the easier, and the former is readily neglected for it.
+     Then there is the endeavor to flatter the master, which is
+     most effectually done by imitating his faults; and the fact
+     that pretending connoisseurs are most cheaply satisfied by
+     mannerism.]
+
+     [Footnote 264-6: There is a peculiar charm, very productive
+     in itself, attaching to the cultivation of a field which has
+     been but little cultivated, and which, therefore, has the
+     advantage of promising something new. On the other hand, the
+     decline of almost all literatures begins with this, that
+     writers and readers no longer think out completely the forms
+     of speech, modes of expression, etc. to which they have
+     become used, as their original creators did; a great
+     temptation to have recourse to a more and more spicy
+     literary style. _J. S. Mill_ considers the stationary state
+     (Principles, IV, ch. 6) a very pleasant one to contemplate,
+     but he overlooks the very important fact, that as men are
+     constituted it uniformly introduces national decline.]
+
+     [Footnote 264-7: Great rulers, of whom it is said that they
+     conquered the world by following out their own ideas to
+     their ultimate consequences, would most certainly have lost
+     the world by reason of the same logic if they had continued
+     it only fifty years longer. What would have become of
+     Alexander the Great and Charlemagne if they had lived one
+     generation more?]
+
+
+SECTION CCLXV.
+
+CONCLUSION.
+
+All the separate nations which have lived side by side, or followed one
+another, are embraced under the general name, humanity. Who would deny
+the existence of a point, viewed from which humanity might be seen to
+constitute one great whole; all the variations and differences in its
+life only one great plan, one wonderful sovereign decree of the divine
+will, grandly and wonderfully executed by God? Or who is so bold as to
+say that he stands on this point himself? Theologians should be the last
+to do it, since even the apostle Paul calls God's ways inscrutable. So
+long as we do not even know whether we live in one of the first or one
+of the last decades of humanity, every system of universal history in
+which each nation and period is made to take its place in due
+subordination to its superiors, can be only a castle in the air; and it
+is a matter of indifference whether the basis of the system is
+philosophical, socialistic, or natural-philosophical.[265-1]
+
+The usual error into which the builders of such history fall, is that
+they consider the peculiarities of certain stages of civilization, which
+may be shown to exist among all nations in the corresponding period of
+their history as the national peculiarity of the single people with
+whose history they are, for the time being, concerned. They deduce
+wonderful consequences, from the premises they laid down, but which our
+increasing acquaintance with other nations immediately shows to be
+unfounded.
+
+There is, however, a number of facts really peculiar to a people which
+make up the national character, and which may give to an observer
+endowed with an imaginative mind, an inkling to the special vocation in
+the economy of providence of a particular people. That a positive system
+can be constructed from the material of such facts, I do not, indeed,
+think. But they are at least a safeguard against false systems, against
+the improper application of analogies, against the idle, fatalistic
+exaggeration of the maxim: "nothing new under the sun!" It had almost
+become the fashion to compare our present with the period of decline of
+the Greek and Roman republics. Frightful parallel, in which the greatest
+and most undoubted differences were frequently overlooked for smaller
+and certainly questionable similarities. Is not the abolition of
+slavery, which has been accomplished among all the most important
+nations of the present, something new and of great import from a moral
+and economic point of view?[265-2] Can the national wealth, which
+depends on labor and frugality, be in any way compared with that which
+was based on plunder? And so, no one can calculate the benefits which
+may be reaped by posterity from the mere continuation of the scientific
+and especially natural-philosophical results obtained by former
+generations. The discovery of the whole earth soon to be completed, and
+its probable consequence, the civilization of all nations of any
+importance, must remove the danger to which all the civilized nations of
+antiquity eventually succumbed, namely, destruction by entirely
+barbarous hordes. Nor should the significance of the state-system of
+Europe, which might be extended soon enough into a state-system
+embracing the world, be under-estimated. Macedonia would not so readily
+have subjugated the Hellenes and the Persians if the great powers of the
+west, Rome and Carthage, had intervened at the right time. And there,
+too, is Christianity, whose means of grace are at hand for every one at
+all times, for his complete moral regeneration.
+
+In one word, the usual argument with which the "man of experience" meets
+the man of inventive genius, that there never was anything of the like
+seen before, may suffice in thousands and thousands of cases; but it
+affords no strict proof. It is the province of genius to compel rules to
+extend their limits. But science should never forget that self-denial is
+necessary to the discovery of truth.[265-3]
+
+     [Footnote 265-1: I mean here, especially, the attempt so
+     frequently made (by _Herder_, for instance) to draw a
+     parallel between the periods of universal history and the
+     age at different times of the individual, or with the
+     seasons. If there were a great many humanities between which
+     we might institute a comparison, we might accomplish
+     something with the analogy, but----!]
+
+     [Footnote 265-2: However, even such a man as Minister
+     _Stein_, thinks that a laboriously acquired wealth may
+     affect a people's morality injuriously. "The striving after
+     wealth is the striving for the possession of the means of
+     satisfying chiefly sensuous wants. This striving may
+     suppress all nobler feelings, whether it find expression in
+     violence or industry." Contrariwise, it is possible that
+     some of the noblest of human qualities may be found side by
+     side with the forcible acquisition of wealth, viz.: courage,
+     patriotism. (_Pertz_, Leben Steins, II, 466.)]
+
+     [Footnote 265-3: Compare my discourse on the relation of
+     Political Economy to classic antiquity in the transactions
+     of the royal Saxon Academy of Sciences, May, 1849; also many
+     excellent remarks in _Knies_, Polit. Oekonomie. _Chr. J.
+     Kraus_, has zealously discussed the question whether the
+     development of humanity turns about eternally in a circle,
+     or whether it forever advances to a progressively better
+     future. He strongly advocates the latter view, and on
+     grounds which appeal both to the head and to the heart.
+     (Vermischte Schriften, III, 146 ff.; IV, 277 ff.)]
+
+
+
+
+APPENDIX II.
+
+INTERNATIONAL TRADE.
+
+
+
+
+INTERNATIONAL TRADE.
+
+
+SECTION I.
+
+THE MERCANTILE SYSTEM.
+
+The principal peculiarities of the so-called mercantile system depend on
+a five-fold over-estimation: of the density of population, of the
+quantity of money, of foreign commerce, of the industries concerned with
+the transformation of materials (_Verarbeitungsgewerbe_), and of the
+guardianship of the state over private industry.[A2-1-1] All these
+tendencies are very intelligible, and almost self-evident, in a
+sovereign city-economy (_Stadtwirthschaft_) as opposed to the governed
+and worked-out (_ausgebeuteten_) country districts; as they are found
+even in the city-republics of later medieval times. But they are also
+natural in whole national economies, during that period of youthful and
+rapid growth in which the increasing density of population continues
+still, for a long time, to be really only a spur and an assistance, and
+in which, therefore, there can be no expression of anxiety concerning
+over-population; in which the new and rapidly growing division of labor
+draws attention particularly to the market-side of all businesses and to
+the circulation of goods; in which the progress from trade by barter to
+trade by money necessarily makes the volume of money needed even
+relatively greater; but especially are they natural in that world-period
+in which foreign trade suddenly increased enormously in consequence of
+the discovery of the whole earth; when the citizen classes of the people
+assumed immense importance as compared with the landed and clerical
+aristocracy, and when, in the internal affairs of state absolute
+monarchy, and in foreign politics, the system of equilibrium, through
+the instrumentality of the great compact-formation of states prevailed.
+
+All these tendencies are most intimately connected with one another. If
+precious metal-money be really the essence of national wealth,[A2-1-2] a
+people who possess no gold and silver mines themselves;[A2-1-3] for
+instance, Italy, France and England, can become richer only through
+foreign trade,[A2-1-4] by means of a favorable balance produced by a
+preponderance of their exports over their imports; and only inasmuch as
+this excess is balanced by a payment in money from foreign parts. And
+so, too, in foreign trade, one nation can gain only what another nation
+has lost.[A2-1-5] Gain is promoted not only by direct obstacles placed
+in the way of the exportation of the precious metals, but still more by
+the value-enhancement of the exported commodities, and by the
+value-diminution of the imported commodities.[A2-1-6] And as commodities
+which have undergone the process of transformation are, on an average,
+more valuable than raw materials, the state can best carry out this
+policy by import duties, import prohibitions, and export premiums on
+manufactured articles, as well as by export duties, export prohibitions
+and import premiums on raw materials.[A2-1-7] This is extremely
+necessary against those nations who are superior to others in culture,
+wealth, the cheapness of labor and capital; and hence the envy of the
+mercantilists was directed chiefly against Holland, and after Colbert's
+time also against France.[A2-1-8] Such commodities as are not at all
+adapted to the nature of a country, because of its climate, for
+instance, the nation should produce at least in colonies of its own,
+that it might, in this way, emancipate itself from foreign
+countries.[A2-1-9] As the clear distinction drawn to-day between money
+and capital has asserted itself only since Hume's time, the notion that
+prevailed for centuries, that much money, much trade and a large
+population mutually conditioned one another, was a very natural
+one.[A2-1-10]
+
+The younger and more refined conception of the mercantile system is
+distinguished from the coarse Midas-believing one, by two tendencies
+especially:
+
+A. By the more thorough consideration of the balance of trade and the
+consequent limitation of the traditional supposition, that the excess of
+exports over imports would be always made up in cash money.[A2-1-11]
+
+B. By the extension of the field of view, so that not only the direct
+but also the indirect and more remote effects of international trade
+were taken into consideration.[A2-1-12]
+
+A certain over-estimation of the circulation of goods continued to
+characterize even the latest adherents of the mercantile
+system.[A2-1-13] Yet the caricature drawn by the tradition of more
+recent text-books, of the mercantilists, is true only of the inferior
+ones among them.[A2-1-14] The most distinguished of them,
+Botero,[A2-1-15] for instance, approximate more closely to the science
+of the present day than is usually supposed.
+
+     [Footnote A2-1-1: Compare _Roscher_, Geschichte der
+     Nationaloekonomik in Deutschland, I, 228 ff.]
+
+     [Footnote A2-1-2: Even the remarkable Florentine pamphlet of
+     1454 (_Jablonowski's_ prize essay of 1878, app. Beilage, 4)
+     complains of the decrease of industry principally on account
+     of the diminution of money caused thereby. "Wealth is
+     money," says _Ernestine_, essay of 1530, on the coin, and
+     explains the smaller wealth of the silver-country, Saxony,
+     as compared with England, France, Burgundy and Lombardy, by
+     the greater exportation of commodities of these countries,
+     by means of which they draw the silver of Saxony to
+     themselves. (_Roscher_, Geschichte, I, 103.) _Bornitz_,
+     Theorie wie sich der Staat diesen _nervus rerum_ in groesster
+     Menge verschafft: De Nummis (1608), II, 4, 6, 8. _A. Serra_,
+     Sulle Cause, che possono far abbondare un Regno di Monete
+     (1613), places excess of gold and silver and poverty as
+     diametrical opposites, at the head of his work. _Hoernigk_,
+     Oesterreich ueber Alles, wann es nur will (1684), says that
+     it is "better to give two dollars which remain in the
+     country for a commodity, than only one dollar which goes out
+     of the country" (ch. 9). According to _Schroeder_, Fuerstliche
+     Schatz- und Rentkammer (1686), the export of commodities is
+     a blessing only "when we can turn them into silver through
+     our neighbors." (LXX, 12.) Even _Locke_ held similar views
+     (Considerations of the Consequences of the Lowering of
+     Interest, 1691. Further Considerations concerning Raising
+     the Value of Money, 1698). On _Davenant's_ inconsistency in
+     this respect, compare _Roscher_, Geschichte der Englischen
+     Volkswirthschaftslehre, 110 ff. The quantity of money
+     remaining the same, a country grows neither richer nor
+     poorer (Christ. Wolff, Vernuenftige Gedanken vom
+     gesellschaftlichen Leben, 1721, Sec. 476). _J. Gee_, Trade and
+     Navigation of Great Britain considered (1730), bewails the
+     folly of those to whom "money is a commodity like other
+     things, and also think themselves never the poorer for what
+     the nation daily exports," (p. 11). _Justi_, von Manufacturen
+     und Fabriken (1759 seq.), considers it the principal object
+     of industry simply to prevent the outflow of money.
+     Similarly, _Pfeifer_, Polizeiwissenschaft (1779), II, 286.
+     Even Frederick the Great considered it "true and obvious"
+     that "a purse out of which money is taken every day, and
+     into which nothing is put in turn, must soon become empty."
+     (Oeuvres, VI, 77).]
+
+     [Footnote A2-1-3: The thirst for gold which, in the
+     sixteenth and seventeenth centuries, drove so many emigrants
+     to the western Eldorado, reminds one, by reason of its
+     enthusiasm, of the crusades to the Holy Land. The striving
+     after the making of gold which the emperors Rudolph II.,
+     Ferdinand III., Leopold I., Frederick I. of Prussia,
+     Christian IV. of Denmark, Christian II. and Augustus the
+     Strong of Saxony, Heinrich Julius of Braunschweig, Frederick
+     of Wuertemberg, harbored, and also the Silesian and
+     Brandenburg princes even during the Hussite war (_Riedel_,
+     Cod. Dipl. Brandenb., II, 4, 151), was, to a great extent,
+     misplaced philosophy; men went in search of the _materia
+     universalissima_, the _spiritus universalis_, from which all
+     that is receives its _esse et fieri_, the universal elixir,
+     at once the life-power of man, the universal medicine and
+     maturing principle of natural bodies. (_Roscher's_ Gesch.,
+     I, 230.)]
+
+     [Footnote A2-1-4: _Schroeder_ justifies the little estimation
+     in which he holds internal commerce by saying that "a
+     country may indeed grow and become powerful by its means,
+     but cannot gain in wealth;" just as a dress embroidered with
+     pearls is not made more costly by taking the pearls from the
+     cuffs and putting them upon the cape. (F. Schatz- und
+     Rentkammer, XXIX, 3.) According to the Fredrickian
+     theorizer, _Philippi_, "internal trade scarcely deserves the
+     name of commerce." (Vergroess. Staat, 1759, ch. 6.) _Sir J.
+     Steuart_ still teaches that an isolated state may, indeed,
+     be happy, but that it can grow rich only through foreign
+     trade and mining. (Principles, II, ch, 13.) The same
+     fundamental thought finds expression in the title of _Th.
+     Mun's_ celebrated book: England's Treasure by Forraign
+     Trade, or the Balance of our Forraign Trade is the Rule of
+     our Treasure (1664).]
+
+     [Footnote A2-1-5: _Il est claire qu'un pays ne peut gagner,
+     sans qu'un autre perde, et qu'il ne peut vaincre sans faire
+     des malheureux_ (_Voltaire_, Dict. phil., art. Patrie). Even
+     _Verri_ was, in his earlier period, of the opinion: _ogni
+     vantaggio di una nazione net commercio porta un danno ad un
+     altra nazione; lo studio del commercio e una vera guerra_
+     (Opuscoli, 335).]
+
+     [Footnote A2-1-6: Even in 1761, the learned _Mably_ could
+     say: _la defense de transporter les especes d'or et d'argent
+     est generale dans tous les etats de l'Europe ... il n'y a
+     point de voie moins sensee_ (Droit public, II, 365).]
+
+     [Footnote A2-1-7: The obstacles placed in the way of
+     importation by governments originated, in great part, from
+     views entertained on sumptuary legislation; in that of
+     exportation, from a desire to prevent a scarcity of certain
+     articles, as may be clearly seen in _Patricius_ (De Inst.
+     Reipublic., V, 10, I, 8), and even in _Sully_ (Memoires, XI,
+     XII, XIII, but especially XII), _Bornitz_, _Besold_, _Klock_
+     and _v. Seckendorf_. (Compare _Roscher_, Gesch., I, 191,
+     202, 215, 247.) But the mercantilistic germs show themselves
+     even in _Hutten_ and _Luther_. (_Roscher_, I, 44, 63.) The
+     advance made between the police ordinance of the empire of
+     1530 and that of 1548, is very remarkable in this respect.
+     The mercantile theory of duties appears very systematically
+     elaborated even in _J. Bodinus_, De Republica, 1577, VI, 2;
+     in Germany in _Hoernigk_, Oesterreich ueber Alles, ch. 9.]
+
+     [Footnote A2-1-8: The English jealousy of Holland is
+     represented especially by _Sir W. Raleigh_ (?), Observations
+     touching Trade and Commerce with the Hollander and other
+     nations, 1603, Works, III, 31 ff.; _Sir J. Child_, A new
+     Discourse of Trade (1690), and _Sir W. Temple_, Observations
+     upon the U. Provinces (1672). Compare _Roscher_, Z. Gesch.
+     der englischen V. W. Lehre, p. 31 ff., 125 ff. The English
+     jealousy of France: _Sam. Fortrey_, England's Interest and
+     Improvement (1663). _R. Coke_, A Treatise, wherein is
+     demonstrated that the Church and State of England are in
+     equal Danger with its Trade (1671), and the anonymous,
+     Britannia languens (1680). _Per contra_, especially the
+     work: England's Greatest Happiness, wherein it is
+     demonstrated that a great Part of our Complaints is
+     causeless (1677). Here we find chapters with the title: To
+     export Money our great Advantage; the French Trade a
+     profitable Trade; Multitudes of Traders a great Advantage.
+     _Petty_ gave the best solution to the question in dispute,
+     in his posthumous Political Arithmetic concerning the Value
+     of Lands, etc. _Hoernigk_ would enlist his service in the
+     cause of the jealousy against France, immediately after the
+     disgraceful defeats which Germany in 1680 ff. suffered in
+     the midst of peace, by Louis XIV. Concerning smaller works
+     of the same period and in the same direction, see
+     _Roscher's_ Gesch., I, 299 seq.]
+
+     [Footnote A2-1-9: Even _Peter Martyr_ considered the
+     colonization of countries which yielded the same products as
+     the mother country of no advantage (Ocean, Dec., VIII, 10).
+     On Spanish maps the most flourishing portions of America at
+     present are designated as _tierras de ningun provecho_. And
+     the English for a long time, ascribed value to their New
+     England possessions, so far as the mother country was
+     concerned, only to the extent it was possible to provide the
+     West Indies from that quarter with corn, meat and wood.
+     (_Roscher_, Kolonien, p. 262.)]
+
+     [Footnote A2-1-10: Compare _Botero_, Ragion di Stato (1591);
+     _Law_, Money and Trade (1705), p. 19 ff.; and _Verri_,
+     Opuscoli, pp. 325, 333. Meditazioni (1771), cap. 19.]
+
+     [Footnote A2-1-11: Thus _Child_, spite of all his esteem for
+     the discoverers of the balance-problem, calls attention to
+     cases in which exports suffer so much waste (_Abgang_), or
+     imports are sold so advantageously, that an apparently
+     favorable balance made a people poorer, and an apparently
+     unfavorable one, richer. From the value of the imported
+     commodities the self-earned freight has to be deducted.
+     Countries like Ireland, many colonies, etc., have a
+     preponderance of exportations, because they, by means of the
+     same, pay a rent to absent capitalists or to landowners. (p.
+     312 ff.)]
+
+     [Footnote A2-1-12: _Mun_ admits that, for instance, the East
+     Indian trade makes England richer, although it causes the
+     exportation of much English money. But the exporter of money
+     who, in exchange for it, brings back reexportable
+     commodities, should be compared to the sower. (Ch. 4.)
+     Similarly, _C. Roberts_, The Treasure of Trafficke (1641),
+     and even _A. Serra_, III, 2. According to _Child_, the loss
+     in the East Indian trade is compensated for chiefly by this,
+     that England obtains there the saltpeter it needs to satisfy
+     its demand, and that the ships engaged in that trade are
+     peculiarly well fitted for war. (l. c.) _Saavedra Faxardo_,
+     for similar reasons, declared the discovery of America to be
+     a misfortune. (Idea Principis Christiani politici, 1649,
+     Symb., 68 seq.)]
+
+     [Footnote A2-1-13: Thus _Law_, _Dutot_, _Darjes_ and
+     _Buesch_. Even the violent opponent of the mercantile system,
+     _Boisguillebert_, could not entirely escape this view.
+     Compare vol. I, Sec. 96.]
+
+     [Footnote A2-1-14: This is true, especially of the
+     protectionist weekly paper: British Merchant or Commerce
+     preserved (1713 ff.), in the contest with the weekly Tory
+     paper edited by _Defoe_: Mercator or Commerce retrieved,
+     which Charles King systematized and published anew in 1721.
+     Later _Ulloa_: Noticias Americanas (1772), cap. 12. _Adam
+     Smith_ also concedes that many of the best writers on
+     commerce, at the beginning of their books, allow that the
+     wealth of a country consists not only in gold and silver,
+     but also in goods of every description; but that further on
+     they tend more and more to forget this qualification of the
+     meaning of wealth. (W. of N., IV, ch. 1.) Hence it is that,
+     in recent text-books, so many are now called adherents and
+     now opponents of the mercantile system.]
+
+     [Footnote A2-1-15: Even _Colbert_ says: nothing is more
+     precious in a state than the labor of men (Lettres,
+     Instructions et Memoires de C. publies par P. Clement, 1861
+     ff., II, 105). The great trade with foreign countries and
+     the small trade in the interior contribute equally to the
+     welfare of nations. (II, 548.) I would not hesitate to do
+     away with all privileges, the moment I found that greater or
+     as great advantages attended their abolition. (II, 694.) His
+     duty-system of 1664 was a simplification, but also an
+     important diminution of his earlier chaotic tariff. (II, 787
+     ff.)]
+
+
+SECTION II.
+
+REACTION AGAINST THE MERCANTILE SYSTEM.
+
+The reaction against the mercantile theory of the balance of trade,
+which reached its height in Adam Smith, was based principally upon the
+following considerations:
+
+A. Precious-metal-money is a commodity like all other commodities, and
+therefore useful only for certain purposes. It is as little to the
+wealth-interest of a people, by means of a continually favorable
+balance, to import infinite quantities of the precious metals, as it is
+to its power-interest, by means of its commercial policy, to accumulate
+infinite stores of powder. The person who possesses other exchangeable
+goods will be as well able, in case of need, to obtain gold and silver
+therewith as to obtain powder.[A2-2-1] We part with no capital when we
+export the precious metals and import other commodities instead; we
+simply exchange thereby one form of capital for another.[A2-2-2] The
+notion that the gain in trade is coincident with the balance of account
+paid in cash, is just as palpably false in the trade among nations as in
+trade among private persons.[A2-2-3] It would be a decided hardship to
+most men, if they were to receive payment at once in money for all that
+they possessed: and the nation is made up of individuals.[A2-2-4] And
+even the reasons which make payments in cash more uniformly desirable,
+in the case of private persons not engaged in mercantile pursuits, cease
+in the case of whole nations.[A2-2-5]
+
+B. But a continual over-balance (_Ueberbilanz_) is not at all possible.
+Every relative increase of the amount of money must enhance the price of
+commodities, lower the value of money, and thus produce an exportation
+of money until a restoration of the level with other countries.[A2-2-6]
+The prohibitions of the exportation of money, so often resorted to, can
+avail nothing, because the precious metals are among the specifically
+most valuable goods; and because it is easier yet to smuggle them out of
+a country than to smuggle them into it.[A2-2-7]
+
+C. The signs by which the mercantile system supposed it could estimate
+the favorableness of the balance of trade are essentially
+deceptive.[A2-2-8] We cannot, for instance, from the course of exchange,
+determine whether the payments made by us to foreign countries have been
+made for purchases, to absentees, etc., or as loans; and yet, according
+to the mercantilists, the latter are as useful to us as the former are
+injurious.[A2-2-9] And even the most accurate tariff-record
+(_Zollregister_) of the exportation and importation of commodities
+affords no guaranty[A2-2-10] that, in many instances, the rendering of
+the counter-value may not remain absent, by reason of bankruptcy,
+shipwreck, or the emigration of property.[A2-2-11]
+
+D. Every act of exchange is advantageous only because through it a
+greater value is received than the one parted with was. (?) Fortunately,
+in normal trade, where both parties satisfy a real want, and neither
+party is deceived, this is actually the case on both sides.[A2-2-12] In
+accordance with all this,[A2-2-13] Baudrillart is of opinion that the
+whole theory of the balance of trade no longer exists.
+
+     [Footnote A2-2-1: Even _Petty_ and _North_, with their deep
+     insight into the nature and functions of money, could not
+     possibly entertain the mercantile theory of the balance of
+     trade. _Petty_ considers the exportation of money useful,
+     even when commodities are brought back in exchange for it,
+     and which are of greater value in the interior than the
+     exported money. (Quantulumcunque concerning Money, 1682.)
+     According to _North_, no one is richer simply because he has
+     his property in the form of gold and silver plate, etc.; he
+     is even poorer, because he allows his goods to lie in that
+     shape unproductive. Hence the importation of money is, in
+     itself, not more advantageous than the importation of logs
+     of wood; at most, the difference that, in case of excess, it
+     would be easier to get rid of the money than of the wood, is
+     of importance. Therefore, a state need never care very
+     anxiously for its supplies of money. A rich nation will
+     never suffer from a want of money. (Discourses upon Trade,
+     1691, pp. 11, 17.) According to _Berkeley_ (Querist, 1735,
+     pp. 566 ff.), there is no greater error than to measure the
+     wealth of a nation by its gold and silver. It is to the
+     interest of a people to keep their money or to send it off
+     according as its industry is thereby promoted. _Quesnay_
+     declares it to be impossible that the exports of a country
+     should be permanently greater than its imports: _tout achat
+     est vente et toute vente est achat_.
+
+     _Adam Smith_ (W. of N., IV, 1) compares the Spanish
+     discoverers who inquired on every island, first of all, for
+     gold, to the Mongolians, whom _Rubruquis_ (c. 32) was
+     obliged to give information to concerning the cattle of
+     France: "of the two, perhaps the Tartar nation was the
+     nearest to the truth." Precious-metal-money may be even more
+     easily dispensed with than most other commodities, since, in
+     case of necessity, it can, by reason of its greater
+     transportability be readily obtained from without, and can
+     also be supplied by exchange and by credit. "Money makes but
+     a small part of the national capital and always the most
+     unprofitable part of it.... Money necessarily runs after
+     goods, but goods do not always or necessarily run after
+     money." _J. B. Say_ calls the exportation of money more
+     advantageous than that of other commodities, because the
+     former is of use, not through its physical qualities, but
+     only through its value, and the value of the money which
+     remains behind correspondingly rises by reason of the
+     exportation. (Traite, I, ch. 17.) Compare especially
+     _Bastiat_, Maudit Argent, 1849.]
+
+     [Footnote A2-2-2: Against _Ganilh_, Theorie de l'Economie
+     politique, II, 200.]
+
+     [Footnote A2-2-3: Even _Mun_ had, in every balance of trade,
+     distinguished three persons who participated in it; the
+     merchant might lose when the nation in general gained, and
+     _vice versa_; the king, with his duties, always gained. (Ch.
+     7.) The British Merchant (p. 23) maintained even, that when
+     the merchant himself gains nothing and takes his
+     back-freight (_Rueckfracht_) in money, his country gains the
+     whole amount thereof.]
+
+     [Footnote A2-2-4: "Every individual is continually exerting
+     himself to find out the most advantageous employment for
+     whatever capital he can command. It is his own advantage,
+     indeed, and not that of the society, which he has in view.
+     But the study of his own advantage, naturally, or rather
+     necessarily, leads him to prefer that employment which is
+     most advantageous to the society." (_Ad. Smith_, W. of N.,
+     IV, ch. 2.)]
+
+     [Footnote A2-2-5: For the reason that money, in
+     international trade, for the most part, loses its character
+     as money, and appears more as a commodity. Exhaustively in
+     _Adam Smith_ and _J. B. Say_, l. c. The English state paid,
+     during the French war of the Revolution, in subsidies to
+     foreign countries, L44,800,000; and yet, up to the end of
+     1797, imperial loans and the payments of private individuals
+     included, not as much as one million in cash went out of the
+     country. (_Rose_, Brief Examination into the Increase of the
+     Revenue of Great Britain, 1799.) When France paid the five
+     milliards to Germany, the plus value of English exportation
+     to Germany above the English importation thence rose from
+     274,000,000 (1869) to 478,000,000 (1872), and the increase
+     in the amount of French from 39,400,000 (1869) to
+     131,700,000 (1873). The entire German under-balance
+     (_Unterbilanz_), _Soetbeer_ (loc. cit.) estimates at
+     878,000,000 of marks.]
+
+     [Footnote A2-2-6: Emphasized especially by _David Hume_ who
+     calls attention to the seeking of its level by water.
+     (Discourses: On the Balance of Trade.) _J. B. Say_ speaks of
+     carriages, the increase of which over and above the need of
+     them must infallibly produce a reexportation of them.
+     (Traite, I, ch. 17.)]
+
+     [Footnote A2-2-7: With all the severity of its export
+     prohibitions, Spain, for centuries, served as a medium to
+     conduct the streams of American silver to the other parts of
+     Europe. As to how Spain, during the last third of the 18th
+     century, was overflowed by copper money, see _Campomanes_,
+     Educacion popular, IV, 272.]
+
+     [Footnote A2-2-8: _von. Schroeder_, F. Schatz- und
+     Rentkammer, XXVII, has a very ingenuous faith in the rate of
+     exchange and a tariff-record (_Zollregister_); while _Child_
+     had a much better insight into the defects of these two
+     criteria. (Disc. of Trade, p. 312 ff.) Compare _Steuart_,
+     Principles, III, 2, ch. 2.]
+
+     [Footnote A2-2-9: Compare Sec. 199. It was a discovery of
+     _Locke's_, that borrowing from foreign countries was
+     advantageous in all those instances in which the inland
+     borrower earned more than the amount of his interest by
+     means of the loan. (Considerations, p. 9.)]
+
+     [Footnote A2-2-10: _Segur_, Memoires, II, 298, tells how the
+     Russian officers of custom were bribed by English merchants
+     to represent the Russian imports from England _under_, and
+     the exports to England _above_ the true value. In addition
+     to this, smuggling was carried on!]
+
+     [Footnote A2-2-11: _J. B. Say_ calculates from the English
+     tariff-record (_Zollregister_), from the beginning of the
+     18th century to 1798, an excess of exports over imports of
+     L347,000,000; and yet the highest estimates of the amount of
+     money actually in England, according to _Pitt_ and _Price_,
+     gave only L47,000,000. (Traite, I, IV, 17.) The Russian
+     lists of exports and imports from 1742 to 1797, show a
+     favorable balance of 250,000,000 rubles; to which must be
+     added 88,000,000 rubles taken from the mines during the same
+     time. But it is notorious that the stores of money
+     diminished. _Storch_, Gemaelde des russischen Reiches, XI,
+     12.]
+
+     [Footnote A2-2-12: Manuel, 310. _F. B. W. Herrmann_ (Muench.
+     gelehrte Anz. XXV, 540) also declares the whole theory of
+     the balance of trade wrong. According to _Brauner_, Was sind
+     Maut und Zollanstalten (1816), 51, it is "a mere fancy."]
+
+     [Footnote A2-2-13: Recognized even by _Ch. Davenant_, On the
+     probable methods of making a People Gainers in the Balance
+     of Trade (Works, II, p. 11).]
+
+
+SECTION III.
+
+FURTHER REACTION AGAINST THE MERCANTILE SYSTEM.
+
+Simultaneously with this opposition, the theory of the international
+balance of trade underwent important refinements, a new and improved
+edition, so to speak, of old Colbertism.[A2-3-1] Each school is wont to
+estimate the favorableness of the balance according to the preponderance
+of that which they consider the most important element in a nation's
+economy. Thus the population-enthusiasts, after the middle of the 18th
+century, distinguished the "balance of advantage" from the "merely
+numerical:" the former is favorable to the country which, by means of
+its exports, employs and feeds the greatest number of men; the latter to
+the country with a preponderating importation of money. And they call
+the former much more important than the latter.[A2-3-2] The great
+advance which this view constitutes over the old system lies chiefly in
+two points: that the number and employment of men are evidently, so far
+as the whole national economy and national life are concerned, a much
+more important element than the quantity of money in a country; and
+further, that now, at least, the possibility of a simultaneous profit on
+both sides is admitted.[A2-3-3] The best writer in this direction, Jos.
+Tucker, is among the great-grand-parents of the Manchester theory of
+to-day!
+
+A further advance was made by men who introduced the higher notions of
+nationality and of the stages of civilization into the theory of
+international trade. Thus, at about the same time, the socialistic J. G.
+Fichte, with his shut-in commercial state, and the romantic reactionary,
+Ad. Mueller, with his organic whole of national economy.[A2-3-4] Finally,
+Fr. List,[A2-3-5] with his "National system of Political Economy," and
+his severe subordination of the mere "agricultural state" to the
+"agricultural, manufacturing and commercial state," acknowledges the
+favorableness of the balance in the nation which by means of the
+exportation of manufactured articles, the importation of the means of
+subsistence and of articles to be manufactured, demonstrates and
+promotes its higher stage of civilization.[A2-3-6]
+
+     [Footnote A2-3-1: Compare _Mengotti_: Il Colbertismo (prize
+     essay of the Georgofili at Florence), 1791. If, with _H.
+     Leo_, we were to designate the whole period from the issue
+     of the struggles of the Reformation to the preparations of
+     the French Revolution as the "age of the mercantile system,"
+     _Colbert_ would be a very appropriate type of it.]
+
+     [Footnote A2-3-2: Compare Sec. 254. Here belong _Forbonnais,
+     Necker, Tucker_ (Important Questions, IV, 11; V, 5; VII, 4;
+     VIII, 5. Four Tracts, 1774, I, p. 36); _Justi_ in his middle
+     period (_Roscher_, Gesch. der N. O. in Deutschland, I, 451
+     ff.); but especially _Sonnenfels_ (politische Abhandlungen,
+     1777, Nr. 1), who sees the best sign of a favorable balance
+     in the increase of population. (Grundsaetze, II, 333.) When
+     Austria, for 2,500,000, purchases diamonds _of_ Portugal,
+     and sells Portugal linen to the amount of 2,000,000, it has
+     the numerical balance against it, but obtains the "balance
+     of advantage." (II, 329 seq.) With an admixture of
+     physiocratism, this doctrine appears in _Cantillon_, Nature
+     du Commerce, 1755, p. 298 ff.; with an admixture of free
+     trade, in _Buesch_, Geldumlanf, V, 12.]
+
+     [Footnote A2-3-3: _Justi_, Chimaere des Gleichgewichts der
+     Handlung und Schiffahrt (1759), supposes a gain on both
+     sides in all commerce between nations. Hence, no nation can
+     attain to a flourishing trade in any way except it be to the
+     advantage of those with which it has to do. (p. 14 ff., 43.)
+     Here, it may be presumed, _Hume's_ Essay, On the Jealousy of
+     Trade, exercised an influence. _Sonnenfels_ distinguishes,
+     in foreign trade, five grades of advantage: 1, most
+     advantageous, when finished commodities are exported and
+     cash money is imported; 2, when finished commodities are
+     exchanged for raw materials; 3, finished commodities against
+     finished commodities; 4, raw material against raw material;
+     5, raw material against finished commodities. (Grundsaetze,
+     II, 202.)]
+
+     [Footnote A2-3-4: It is as necessary that every nation
+     should constitute a separate commercial body as that it
+     should be a separate political and juridical body. The
+     person who asks: why should I not have commodities in all
+     the perfection in which they are made in foreign countries?
+     might as well ask: why am I not completely a foreigner?
+     (_Fichte_, Geschloss. Handelstaat, 1800: Werke, III, 476,
+     411.) _Ad. Mueller_ compares universal freedom of trade to a
+     universal empire, which will ever remain a chimera.
+     (Elemente der Staatskunst, 1809, I, 283.)]
+
+     [Footnote A2-3-5: _List_ (Werke, II, 31 ff.) had, after
+     1818, recognized that a _passive_ balance for whole nations
+     was possible, if they were not able to cover their wants,
+     supplied from abroad and then consumed, by their income, but
+     were obliged to make inroads on their national capital.]
+
+     [Footnote A2-3-6: _Ch. Ganilh_, who expects a real
+     enrichment of a nation only from foreign trade (Dictionnaire
+     de l'E. P., 1826, p. 131), ascribes the most favorable
+     balance to the nation that exchanges dear labor against
+     cheap; that is, principally to a nation of tradesmen as
+     contradistinguished from a nation of agriculturists.
+     (Theorie de l'E. P., 1822, II, 239 ff.)]
+
+
+SECTION IV.
+
+PARTIAL TRUTH OF THE MERCANTILE SYSTEM.
+
+But even among the successors of Hume and Smith, a deeper insight into,
+so to speak, the physics of money and of international trade must have
+led to the recognition of many a truth which the mercantile system had,
+indeed, badly formulated, insufficiently proved, but which it had,
+nevertheless, an inkling of. And, indeed, how frequently it happens that
+the progress of science proceeds from one one-sidedness, through another
+opposed but higher one-sidedness, to the all-sidedness which knows no
+prejudice!
+
+A. Precious-metal-money is, indeed, a commodity, but of all commodities,
+the most current, the most many-sided in its utility, the most
+economically energetic, and at the same time of peculiarly great
+durability.[A2-4-1] Money-capital, far from being the least useful
+portion of a nation's capital, is rather one of its most important
+parts; and especially in the higher stages of civilization, where the
+division of labor has been most largely developed, is it peculiarly
+productive and indispensable.[A2-4-2] Here it is really more likely that
+the possessor of commodities may be wanting the wished for money, than
+that the possessor of money should be wanting in the wished for
+commodities. And, hence, the numerous half mystic expressions of the
+magical power of money, which have passed into literature from the
+common usage of the people, can be, by no means, considered mere errors.
+
+B. Just as little, can the impossibility of the preponderant importation
+of money for a long time, be asserted. Hume's rigid theory of a level,
+by no means, exactly corresponds with the reality. The precious metal
+which is, indeed, imported, but which does not subsequently enter into
+the circulation, need exert no influence whatever on the prices of
+commodities in general; and may, therefore, remain permanently in the
+country. Think only of the articles made of the precious metals, which
+minister to luxury,[A2-4-3] of buried private treasure, of the treasures
+of the state, which are idly stored up; as well as of a portion at least
+of most cash on hand.[A2-4-4] From the other side, also, the
+over-balance or under-balance (_Ueber-oder Unterbilanz_) of a country may
+continue, a very long time, when its internal trade with its money-need
+is, in the first case, an increasing, and in the last, a decreasing one.
+So far, the preponderance of the importation of money may be called a
+favorable sign and the preponderance of the exportation of money an
+unfavorable one. And the person who thinks that a permanent
+preponderance of exports or imports is not at all possible in the way of
+commerce, overlooks the possibility of a very extensive national
+indebtedness.[A2-4-5]
+
+C. But a distinction should be made between the _balance of payments_
+and the _balance of trade_ in the narrower sense of the
+expression.[A2-4-6] In the case of the latter, to be complete, it is
+necessary to carry to the credit side of the account: 1, The exports of
+commodities; 2, the profit made by parties at home by realizing on
+(_Realisierung_) the exports in foreign countries; 3, the freight-profit
+made by parties at home on exports and imports, as well as in foreign
+carrying trade (_Zwischenverkehr_); 4, the sale of inland ships in
+foreign countries; 5, premiums and compensation for damage on account of
+maritime insurance from foreign countries. On the debit side, on the
+other hand, the corresponding items when foreigners have received from
+the home country, as in the case of imports, etc. To obtain the general
+payment-balance, we have still, in addition, on the credit side: 1, The
+profit from home participation in enterprises in foreign countries and
+the transfers of capital originating therefrom; 2, the interest and
+repayments of money-capital loaned in foreign countries; 3, the sale of
+stocks (_Effecten_) to foreign countries as well as new loans to which
+the home country makes in foreign parts; 4, remittances from foreign
+countries to foreigners sojourning in the home country, and money
+brought with them by travelers and emigrants; 5, inheritances, pensions
+and extraordinary payments from foreign countries. Then, too, on the
+debit-side, belong the corresponding counter-items.[A2-4-7] If we, in
+this way, take a survey of the whole world, we shall perceive a treble
+current of the precious metals. The first and most regular goes, in long
+lines, from mining countries, over to the commercial countries of the
+world, and distributes the newly acquired gold and silver as commodities
+according to the wants of the coinage, of manufactures, etc. The second
+oscillates, as it were, in short waves from country to country, in order
+to adjust the _plus_ or _minus_ for the time being of payment-balances.
+Lastly, regular sudden currents, with slow subsequent counter-currents,
+when single economic districts require to make extraordinary drafts or
+shipments of the precious metals, by reason of bad harvests, war, a
+disturbed double standard, etc.
+
+D. Since international indebtedness has so much increased, precisely the
+richest nations may have the greatest regular excess of exports over
+imports; partly because of the great amount of capital, etc., which they
+possess in foreign countries; partly because of the great development of
+their system of credit in the interior, by means of which they find
+substitutes for so great a part of the metallic currency.[A2-4-8]
+
+     [Footnote A2-4-1: _Locke_, Civil Government (1691), Sec. 49,
+     seq., emphasizes this durability of the value-preserving
+     metallic money, in opposition to the perishable articles of
+     consumption, as a principal element in the development of
+     private property and of economic civilization. But even
+     _Petty_ ascribes to the precious metals a higher quality as
+     wealth than to any other commodity, for the reason that they
+     are less perishable, and possess value always and
+     everywhere. Hence, he esteems foreign trade more highly than
+     inland trade, and would have those businesses which import
+     the precious metals protected more than others against
+     taxation. (Several Essays, 1682, p. 113, 126, 159.) _Adam
+     Smith_ also recognizes this, at least so far as intermediate
+     trade is concerned. (W. of N., IV, ch. 6.)]
+
+     [Footnote A2-4-2: Even _Rau_, in his additions to _Storch_
+     (1820), p. 397, concedes the peculiarly charming, vivifying
+     power, which money possesses to an extent greater than any
+     other commodity. Well distinguished whether the money-want
+     of a country is already fully satisfied or not. (Ansichten
+     der Volkswirthschaft, 1821, p. 157.) _Carey_ exaggerates
+     when he calls money the cause of the movement in society,
+     out of which force is produced, what coal is to the
+     locomotive, or food to the animal body (Principles of Social
+     Science, ch. XXXII, 5), or the only want of life for which
+     there is a universal demand. (Ch. XXXIII, 1.) But he rightly
+     calls it the "instrument of association." Excellent
+     demonstration, as to how, at the sudden outbreak of a war,
+     of a revolution, etc., all those who have money on hand,
+     even when they had previously obtained it while peace still
+     prevailed, in the form of a loan, are in an infinitely
+     better position than the owners of the otherwise most useful
+     commodities. (Ch. XXXVII, 12.) Earlier yet, _P. Kaufmann_
+     placed the "principal character of money" in this, that it
+     was "most perfect property (_Vermoegen_);" and he calls its
+     quality as a commodity, philosophically considered, in
+     question; and judges the balance of trade according to this,
+     that in commodities, interest-yielding as well as dead
+     capital is exported, but in money-capital, which is always
+     gain-engendering. (Untersuchungen im Gebiete der politischen
+     Oekonomie, 1829, I, 4, 74, 80.)]
+
+     [Footnote A2-4-3: In England, _Patterson_ estimates the
+     regular additional importation (_Mehreinfuhr_) of money at
+     from four to five millions sterling, of which the greater
+     part is devoted to purposes of luxury. (Statist. Jrl., 1870,
+     217.)]
+
+     [Footnote A2-4-4: _Fullarton's_ view (Regulation of
+     Currencies, 1844) suffers from exaggeration. _Knies_, Geld
+     and Credit, II, 285, very well shows that the "hoards" are
+     by no means mere idle stores, and that, therefore, their
+     void produced by the exportation of money must be soon
+     filled up again. _Adam Smith_, even, may be considered a
+     predecessor of _Fullarton_. (W. of N., ch. 2, p. 250, Bas.)]
+
+     [Footnote A2-4-5: Even _Buesch_ (Werke, XIII, 26) says that
+     the under-balance (_Unterbilanz_) of the Scotch vis-a-vis of
+     England was for a long time made up in two ways, by the
+     marriage of wealthy English heiresses and by Scotch
+     bankrupts. Thus the troops, who, in the 17th century, were
+     traded over to France, and in the 18th, to England by German
+     princes, brought the money, in part, back again, which was
+     exported by the unfavorable balance. According to _List_,
+     the exported metals, after they have risen in price with us,
+     flow back to us again; not, however, as exchangeable
+     articles, but in the form of a loan, by which it is made
+     possible for us to dispose of them again, and again to
+     receive them in this shape. (Werke, II, 37.)]
+
+     [Footnote A2-4-6: Thus even _J. Steuart_, Principles, IV, 2,
+     ch. 8.]
+
+     [Footnote A2-4-7: Compare _Soetbeer_ in _Hirth's_ Annalen
+     des deutschen Reiches, 1875, p. 731 ff.]
+
+     [Footnote A2-4-8: British Europe had from 1854 to 1863, a
+     yearly surplus amount (_Mehrbetrag_) of imports of at least
+     266, and at most 1190 millions of marks, in the average, 764
+     millions; from 1864 to 1873, of at least 802 millions, and
+     at most 1388 millions, an average of 1104 millions; whereas,
+     on the other hand, Australia, besides its great exportation
+     of gold, exhibits a great excess of exports of commodities
+     over imports. France, too, from 1867 to 1869, had attained
+     to an average surplus importation (_Mehreinfuhr_) of 211
+     million marks; which is related to the fact that, according
+     to _L. Say_, it received about from 600 to 700 million
+     francs a year in interest from foreign countries; and that
+     from 200 to 300 million francs were expended by foreigners,
+     etc., traveling in France. Similarly, in the case of
+     governing countries vis-a-vis of their dependencies; whence
+     even the old mercantilists entertained no doubt of the
+     enrichment of the former. Thus France, in 1787 ff., had a
+     yearly importation of 613 million livres, and an exportation
+     of 448 millions, because the colonies sent to France 150
+     millions more than they drew therefrom. (_Chaptal_, De
+     l'Industrie, Fr., I, 134.) Hungary, from 1831 to 1840, had a
+     yearly exportation of 46 million florins to Austria, and an
+     importation of only 30 millions. (_List_, Zollvereinsblatt.
+     1843, No. 49) Algiers drew from France in 1844 to the amount
+     of 83 million francs, and found a market there for only 8
+     millions (Moniteur), which no one will consider an
+     enrichment of France. The great preponderance of French
+     exports in 1831, 1848 and 1849, of Austrian, between 1874
+     and 1876, a sign of diminished purchasing capacity! When
+     England, in March, 1877, imported to the amount of
+     L35,230,000, and exported to the amount of L16,921,000
+     (against L27,451,000 and L17,739,000 in March, 1876), the
+     Economist sees therein a sign that many outstanding debts
+     were called in.]
+
+
+SECTION V.
+
+THE ADVANTAGES OF INTERNATIONAL TRADE.
+
+The truth that no exportation is permanently possible without
+importation, and that, in international trade, also, both sides better
+their condition, was clear to the Italians in the fifteenth century, and
+in the sixteenth and seventeenth centuries to the Netherlanders.[A2-5-1]
+
+Every nation can, through its instrumentality, for the first time,
+acquire not only those commodities which nature entirely refuses to it,
+but such also which it can itself produce only at a great cost.[A2-5-2]
+And here it is not so much the absolute costs of production as the
+comparative which are decisive.[A2-5-3] The country A may be superior to
+the country B in all kinds of productiveness; but when this superiority
+for the group of commodities _x_ amounts to only 50 per cent., and for
+the group _y_, on the other hand, to 100 per cent., it is to the
+interest of A, which possesses only a limited quantity of the factors of
+production, to produce a surplus of the commodities _y_, and to exchange
+that surplus against what it wants of _x_.[A2-5-4] B, also, would
+willingly agree to this, even if it were not to get the commodities _y_
+entirely as cheap as A might supply them, but still decidedly cheaper
+than their production would cost in B itself. But, if both parties
+derive advantage from international trade, there is no necessity
+whatever that this advantage should be equally great on both sides. As
+in every struggle over prices, the gain here also is greatest on the
+side of the nation whose desire to hold fast to their own commodities is
+farthest from being outweighed by the want of the foreign commodity, and
+which, at the same time, employs most productively the equivalent
+received in imports in exchange for its exports.[A2-5-5] Yet, in
+estimating this productiveness, it is necessary to take the whole
+national life into consideration.[A2-5-6]
+
+The international distribution of the precious metals is subject to the
+same law. These, also, are procured most cheaply by the nation which,
+directly or indirectly (by the production of counter values wished for
+by the whole world), employs the most productive economic activity upon
+them, and at the same time (it may be by especially well developed
+credit), is in the least urgent need of them.[A2-5-7] Therefore, on the
+whole, their value in exchange is wont to be lowest among the richest
+and most highly cultivated nations.[A2-5-8] Such a relative cheapness of
+gold and silver is not only a symptom of economic power, but considering
+the preeminent energy of these very commodities, at the same time, a
+means to procure most foreign commodities with a smaller expenditure of
+one's own forces.[A2-5-9] Hence, a great change in the distribution,
+hitherto usual, of the precious metals, produced, possibly, by great
+advances made in production here, or by an increase in consumption
+there, or by means of commercial prohibitions, etc., may be just as
+advantageous to the country which receives more as hurtful for the
+country which pays more;[A2-5-10] and both, all the more as the
+revolution in prices enhances the most productive elements of the nation
+there, and here the most unproductive.[A2-5-11] Hence, even when it
+cannot, in general, be said that one branch of commerce, carried on in a
+normal manner, should necessarily remain behind another in economic
+productiveness, those which have nothing to fear from a disturbance of
+their balance by the measures of foreign states are distinguished by the
+greatest security, and those are capable of the greatest growth which
+exchange articles to be manufactured (_Fabrikanden_), and the means of
+subsistence against ordinary manufactured articles.[A2-5-12] [A2-5-13]
+
+     [Footnote A2-5-1: _M. Sanudo_, in Muratori Scriptores, XXII,
+     950 ff., and the Netherland decree of February 3, 1501, in
+     the Journal des Economistes, XIII, 304. Then, _Salmasins_,
+     de Usuris (1638), p. 197. _Child_, _Becher_ and _Temple_ had
+     all made their studies in Holland. Compare, besides, even
+     _Plato_, De Rep., II, 371.]
+
+     [Footnote A2-5-2: _J. S. Mill_ rightly calls it a remnant of
+     the mercantile system that _Adam Smith_ still saw the
+     principal utility of foreign trade in the market for the
+     home production which is thereby increased. But this utility
+     is to be looked for not so much in what is exported as in
+     what is imported. (Principles, II, ch. 17, 4.)]
+
+     [Footnote A2-5-3: Compare _v. Mangoldt_, Grundriss der V. W.
+     L., 185 ff. By the English, the discovery of this truth is
+     attributed to _Ricardo_, Principles, ch. 7. Compare the
+     further development in _J. Mill_, Elements (1821), III, 4,
+     13 seq.; _Torrens_, The Budget (1844) and _J. S. Mill_,
+     Essays on some unsettled Principles of Political Economy
+     (1844), No. 1, and Principles, III, ch. 18 ff. But even
+     _Jacob_, Grundsaetze der Polizeigesetzgebung (1809, p. 546
+     ff.), was acquainted with the truth that generally both
+     sides gained, but the one party, possibly more than the
+     other. According to _Lotz_, Revision (1811), I, 161, the
+     gain and loss of each party rises and falls in proportion to
+     the difference between the degrees of value which each
+     party, so far as he is himself concerned, attaches to the
+     goods given and the goods received. And even _Cantillon_,
+     Nature du Commerce (1155), p. 226, 369 ff., had a
+     presentiment of the reason why countries having a low value
+     in exchange of money can continue notwithstanding to sell in
+     foreign countries. And so, too, _Hume_, Essays (1752), On
+     Interest, who, without looking through the spectacles of the
+     mercantile system, perceived that countries with a
+     flourishing trade must necessarily draw much gold and silver
+     to themselves. Recently, _Cairnes_ has shown by practical
+     examples that Australia imports Irish butter and Norwegian
+     wood, and the Barbadians meat and flour from New York,
+     although both might themselves produce such articles
+     cheaper. (Essays, etc., 1873. Leading Principles, 1874, p.
+     379.)]
+
+     [Footnote A2-5-4: Thus a Kaulbach might more expertly
+     ornament his own door and window frames than an ordinary
+     room-painter, but does not do so, because he can employ his
+     time to better advantage.]
+
+     [Footnote A2-5-5: Even _Law_, Money and Trade, p. 31, was of
+     opinion, that when a nation consumes its imports which are
+     greater than its exports, it grows poorer, not in
+     consequence of the importation, but of the consumption.
+     _Quesnay_ calls attention to the _plus on moins de profit
+     qui resulte des marchandises memes que l'on a vendues et de
+     celles que l'on a achetees. Souvent la perte est pour la
+     nation qui recoit un surplus en argent, et cette perte se
+     trouve au prejudice de la distribution et de reproduction
+     des revenus_. (Max. gener., 24.)]
+
+     [Footnote A2-5-6: _Rau_ distinguishes principally whether
+     importation brings articles of luxury or means of
+     acquisition (_Erwerbstamm_) into the country. (Ansichten der
+     V. W., 163.) Similarly, _de Cazcaux_, Elements d'Economie
+     privee et publique (1825), p. 188 ff. _Schmitthenner_, Zwoelf
+     Buecher vom Staate (1839), I, 497. "A favorable balance of
+     trade does not make a people richer because they receive the
+     metals for other values, but because they produce and sell
+     more than they purchase and consume; the result of which
+     naturally is that the difference must consist in values
+     capable of being capitalized." Kaufmann draws a distinction
+     according as the imported goods come into the country in the
+     form of dead or interest-bearing capital. He illustrates his
+     view by the case of a peasant who sells his seed-corn in
+     order to purchase a finer hat with the proceeds.
+     (Untersuchungen, I, 96, 81 seq.)]
+
+     [Footnote A2-5-7: International trade makes imported
+     commodities cheaper and exported commodities dearer, but the
+     aggregate of consumers gain more in the former case than
+     they lose in the latter, because they now enjoy the
+     blessings of the international division of labor. But, even
+     with this general enrichment, single classes of the people,
+     and even the majority, may have to suffer; as, for instance,
+     when in the exchange of corn against iron, the cheapening of
+     the iron profits the people less than the consequent
+     dearness of corn injures them. (_Fawcett_, Manual, 391.)]
+
+     [Footnote A2-5-8: "Gold and silver are by the competition of
+     commerce distributed in such proportions amongst the
+     different countries of the world as to accommodate
+     themselves to the natural traffic which would take place if
+     no such metals existed and the trade between countries were
+     purely a trade of barter." (_Ricardo_, Principles, ch. 7.)
+     In most direct opposition to the mercantile system, he
+     represents the distribution of the precious metals to be not
+     the cause but the effect of national wealth. A nation
+     rapidly growing in wealth will obtain and keep a larger
+     quota of the general supply of gold and silver. (The high
+     Price of Bullion, 1810.) On the other hand, it depends on
+     the one-sided abstraction with which _Ricardo_ loves to
+     pursue certain assumptions, that every exportation of money
+     is made to signify a peculiar cheapness of money, and _vice
+     versa_. (Opposed by _Malthus_, Edinb. Rev., Febr., 1811.)
+     _Carey's_ frequently repeated assertion, that gold and
+     silver always flow towards those markets where they are
+     cheapest (Principles of S. Science, I, 150, and passim),
+     confounds cause and effect.]
+
+     [Footnote A2-5-9: Compare Sec. 126, and even _Kaufmann_,
+     Untersuchungen, I, 75 seq.]
+
+     [Footnote A2-5-10: Let us suppose that, hitherto, the
+     English had supplied their demand for wine from France, and
+     paid therefor in commodities made of steel; and that now
+     France prohibits the importation of the latter and requires
+     gold instead. If the English take this gold out of their own
+     circulation, the value in exchange of the gold which remains
+     to them rises; the prices of all commodities fall, state
+     debts and private debts become more oppressive, etc. If, to
+     avoid this, they send their steel wares, which France has
+     rejected, to California, to obtain gold there in exchange,
+     they find that California has as much of steel wares as it
+     requires, and that it can be induced to extend its
+     consumption of them only by a corresponding lowering of
+     their price. But if, on the other hand, the gold which has
+     flowed towards France has produced a rise in the price of
+     commodities, and a decrease in the exportation of
+     commodities; and has then flowed out of the country, to
+     Germany for instance; England may in consequence be placed
+     in a position to effect its payments for French wine with
+     the gold which its manufactured articles have been exchanged
+     against in Germany. But all this always supposes that the
+     prices of commodities have fallen in England and risen in
+     other countries; that is, a changed and, so far as England
+     is concerned, an unfavorable distribution of the precious
+     metals--which is found in connection with a relatively
+     decreased productiveness of English labor. The English cost
+     of production may yet continue to be covered,
+     notwithstanding; but, when it has been diminished by a
+     lowering of wages, interest, etc., the national wealth
+     suffers in consequence. Compare _Torrens_, Budget, p. 50
+     ff., who precisely on this bases the greater security of
+     trade between the mother country and its colonies; and which
+     also found expression in the Peel reform plan of 1842 ff.
+     _Adam Smith_ approximated to this view when he ascribed a
+     more favorable balance to the country which paid for its
+     imports with its own instead of with foreign products. (W.
+     of N., IV, ch. 3-2, p. 329, Bas.)]
+
+     [Footnote A2-5-11: Compare Sec. 141. Strongly emphasized by
+     _List_, Werke II, 31, 36 seq. 48, 137.]
+
+     [Footnote A2-5-12: _Torrens_ imagines an English
+     manufacturer who employs raw material = 100 quarters of corn
+     and manufactured wares = 100 bales of cloth (the quarter of
+     corn and the bale of cloth supposed to be of equal value)
+     and whose product = 240 bales in value; and compares him
+     with an American agriculturist who, by means of the same
+     outlay of capital, harvests 240 quarters of corn. The trade
+     between them restores to each not only his outlay, with
+     twenty per cent. profit, but puts them in a position to
+     repeat their production on a larger scale. Only the quantity
+     of fertile land can put a limit to this growth; for corn and
+     cloth help produce each other, and the cheapness of the one
+     promotes the cheapness of the other, which can not, by any
+     means, be said, for instance, of the exchange between
+     vanilla and satin. (Budget, p. 268 ff.) Compare _Roscher_,
+     Colonien, p. 277 ff.]
+
+     [Footnote A2-5-13: The important controversy concerning
+     absenteeism may be answered in accordance with the
+     principles laid down in this chapter. The mercantile system
+     considered the rent sent to absentee landlords or
+     capitalists as a tribute paid to foreign countries; but
+     certainly improperly, as such rent is only the fruit of
+     their property which the owners might have consumed in their
+     own country, without giving any one a particle of it.
+     Besides, these rents are not sent in cash to foreign
+     countries, but in the form of those commodities to the
+     exportation of which the country is peculiarly well adapted.
+     Let us suppose, for instance, that the Irish absentees had
+     all left the country at once. The tradesmen, personal
+     servants, etc., to whom they had hitherto furnished
+     employment would be greatly embarrassed to find a market for
+     their services, etc., but the producers of linen and meat
+     would have largely increased their exports, because an
+     entirely new demand for their products would have arisen
+     through the farmers of the absentees. The reverse would
+     necessarily happen if all absentees were suddenly called
+     home. Absenteeism which has lasted a long time injures no
+     one economically. Many, recently, laud it even, because it
+     permits every nation to devote their energies to the
+     branches of production for which they are best qualified:
+     Paris, for instance, to theatrical and luxury wares. The
+     savings made by the English absentees on the continent,
+     where things are cheaper, turn eventually to the advantage
+     of England. (Thus, even _Petty_: Political Anatomy of
+     Ireland, p. 81 ff. _Foster_, On the Principle of Commercial
+     Exchanges between Great Britain and Ireland, 1804, p. 76 ff.
+     Edinb. Rev., 1827. _F. B. Hermann_, Staatswirthschaftl.
+     Untersuchungen, 355, 363 ff. _Per contra_, especially,
+     Discourse of Trade and Coyn, 1697, p. 99. _M. Prior_, List
+     of the Absenters of Ireland, 1730. _A. Young_; Tour in
+     Ireland, 1780. _Sir J. Sinclair_, Hist. of the Public
+     Revenue, 1804, III, 192 seq. _Lady Morgan_, On Absenteeism,
+     1825.) An aversion for absenteeism plays a chief part in all
+     Carey's writings. Thus, even in his Rate of Wages, 45 ff.
+
+     On medieval complaints concerning the absenteeism of
+     monasteries: _Bodmann_, Rheingauische Alterthuemer, 751. From
+     a higher point of view, it cannot, indeed, be ignored that
+     absenteeism, largely developed, cripples the organic whole
+     of national life. The most highly cultured and influential
+     classes become estranged from their country, the great mass
+     remaining behind coarser, economic production more
+     one-sided, and all social contrasts more sharply defined.
+     Disturbances in Rome, when Diocletian removed his residence
+     from there; the decline of the Netherlands, very much
+     promoted by the discontent which Philip II.'s departure for
+     Spain produced. It was estimated, however, in 1697, that the
+     English absentees caused a gain to France of L200,000 per
+     annum. (Discourse of Trade, p. 93.) It is said that about
+     1833, 80,000 Englishmen traveled on the continent, and
+     consumed L12,000,000 there. (_Rau._) According to
+     _Brueckner_, the Russians who travel in foreign countries
+     take 20,000,000 rubles a year out of the country with them.
+     (_Hildebrand's_ Jahrb., 1863, 59.) That the countries which
+     receive these travelers receive no very great benefit from
+     them, see in _J. B. Say_, Cours pratique. In Paris, there
+     were, even in 1797, so many strangers who so enhanced the
+     rents paid for _maisons garnies_ that their expulsion was
+     proposed. (_A. Schmidt_, Pariser Zustaende, III, 78.)]
+
+
+SECTION VI.
+
+INTERNATIONAL COMMERCIAL TREATIES.
+
+All international commercial treaties have this object in common: to
+moderate the impediments to trade which arise from the differences and
+even from the enmities of states. According to time and character, they
+fall into three groups:
+
+A. _Medieval_, where a barbarous state for the first time promises
+foreign merchants in general legal security, without which regular trade
+is unthinkable. Such treaties, where their provisions are not a matter
+of course, must be certainly considered as a salutary advance; and they
+may, under certain circumstances, be necessary even to-day.[A2-6-1]
+
+B. _Mercantilistic_ treaties, which close, perhaps, even a bloody
+commercial war carried on against a rival,[A2-6-2] or which by a closer
+connection with a state, whose rivalry is not so much feared, are
+intended to moderate the worst consequences of a general
+seclusion.[A2-6-3] Consistently carried out, and without any regard for
+consequences, the mercantile system really means a war of each state
+against all others, and it is no mere accident that after the cessation
+of the wars of religion (1648) and before the beginning of the war of
+the French revolution (1792), commercial wars occupy the foreground.
+Such economic alliances as are entered into in these treaties generally
+unite states which, by reason of the very different nature of their land
+and their different national culture, are adapted to production of very
+different kinds, and which, at the same time, have a common political
+interest.[A2-6-4] Each party here agrees with the other to give a
+preference to its subjects in trade, to not exceed certain maxima of
+duties, etc.[A2-6-5]
+
+The art of the negotiator was employed to overreach the other
+contractant in relation to the balance of trade.[A2-6-6] It was
+considered a special matter of congratulation to induce a less highly
+developed nation to abandon the traditional means employed to
+artificially elevate its industries. Hence it is, that such friendly
+treaties frequently contained the germs of the bitterest enmity.[A2-6-7]
+A popular remnant of this second group has been noticeable even in
+recent times, when in diplomatic negotiations concerning the reciprocal
+modification of duties, it was considered an overreaching and even as an
+outrage, in case one state made more "concessions" than it
+received:[A2-6-8] evidently, a confusion of the producers of the
+industry in question with the whole nation.
+
+C. _Free-trade_ treaties, intended to pave the way to the general
+freedom of trade.[A2-6-9] Two provisions especially are characteristic
+here: putting the subjects of the other party on an equal footing with
+those of the home country in what relates to the ship-duties,
+etc.;[A2-6-10] and the promise that the products of the other party, as
+regards import duties, shall be treated like those of the most favored
+nation.[A2-6-11] [A2-6-12] Whether this preparation for the universal
+freedom of trade is better made through the medium of an international
+treaty or of national legislation cannot be answered generally.[A2-6-13]
+Besides, in our day, the preference of one foreign nation would be
+easily evaded through the perfection of the modern means of
+communication.
+
+     [Footnote A2-6-1: The treaty of commerce between England and
+     Morocco, of the 9th of December, 1856, specially covenants
+     that the countrymen of a debtor shall not be held
+     responsible for debts in the creation of which they had no
+     part; that between England and Mexico, in 1826, guaranties,
+     among other things, that prices shall be freely determined
+     between buyers and sellers (art. 8), freedom from compulsory
+     loans, and from forced conscription for military duty (10),
+     the exercise of one's religion, and the inviolability of
+     graves (13); things which were not yet matters of course in
+     Mexico! Similar agreements between Spain and England in
+     1667; between Spain and Holland in 1648 and 1713; and even
+     in 1786, between England and France. Commercial treaties of
+     this kind are found very early and very frequently among the
+     ancients. Compare the Arcadian-AEgean in _Pausan_, VIII, 5,
+     5, which strongly recalls the Russo-English trade over
+     Archangel; further, Corp. Inscr. Gr., II, No. 1793, 2053 b
+     and c, 2056, 2447 b, 2675-78, 3523. That in the suburbs of
+     Jerusalem, from Solomon to Josias, places where Astarte etc.
+     was worshipped, were maintained unhindered, depends, it is
+     said, on commercial treaties with the Phoenicians,
+     Moabites, Ammonites. (_Movers_, Phoenikier, III, 1, 121 ff.,
+     206 seq.)]
+
+     [Footnote A2-6-2: The two commercial treaties between Rome
+     and Carthage, 348 and 306 before Christ (_Polyb._, III, 22
+     ff.), are a clear proof that, in the interval, the
+     mercantile superiority of Carthage had increased. While the
+     Romans in 348 had still the right, under certain
+     limitations, to carry on trade in Sardinia and Africa, it
+     was in 306 entirely denied them.]
+
+     [Footnote A2-6-3: As guild-privileges make annual fairs
+     (_Jahrmaerkte_) and governmental fixed prices necessary.]
+
+     [Footnote A2-6-4: Commercial treaty of the Venetians with
+     the Latin empire in Constantinople, of the Genoese with the
+     Greek after its restoration; in which, for instance, it was
+     promised to the former, that no citizen of a state at war
+     with Venice, should be permitted to sojourn in the Byzantine
+     empire; to the latter, that they alone of all foreigners
+     should enjoy freedom from taxation, and, with the Pisans,
+     navigate the Black Sea. As long as the Dutch were the
+     hereditary foes of Spain, they were much favored in France.
+     Commercial treaty of 1596, putting them on an equal footing
+     with the French; and which, considering their superiority at
+     the time, was necessarily of greater advantage to them than
+     to the French. _Colbert's_ step to destroy this
+     preponderance is coincident with the changed foreign policy.
+     (Richesse de Hollande, I, 127.) In the peace of Nijmegen,
+     again (art. 6 seq.), France tried to separate the Dutch from
+     their allies by the restoration of their former rights. In
+     the Spanish war of succession, France entered into a treaty
+     with the arch-duke, Charles, that a common commission should
+     fix the duties on English commodities, transfer the trade
+     with America to an English-Spanish company, but that the
+     French should be excluded therefrom. (_Ranke_, Franz.
+     Gesch., IV, 257.)]
+
+     [Footnote A2-6-5: The king of Bosporos had the rights of
+     citizenship in Athens, and enjoyed that of freedom from
+     taxation of his property there. In consideration of this,
+     the Athenians were released from his corn export duties of
+     1/30. (_Isocr._, Trapez., Sec. 71. _Demosth._, Lept., p. 476
+     ff.) Commercial treaty of Justinian with Ethiopia: the
+     latter was to afford aid against the Persians, in return for
+     which Byzantium promised to supply its requirement of silk
+     no longer from Persia, but from Ethiopia. Commercial treaty
+     between Florence and England, 1490: England promised to
+     permit all the wool destined for Italy, except a small
+     quantity intended for Venice only, to go over Pisa, and as a
+     rule, not through foreigners. Florence, on the other hand,
+     was to receive English wool only through English ships.
+     (_Rymer_, Foedera, XII, 390 seq. Decima dei Fiorentini, II,
+     288 ff.)]
+
+     [Footnote A2-6-6: The difficulties of such negotiations
+     described by an experienced politician (probably _Eden_):
+     Historical and Political Remarks on the Tariff of the French
+     Treaty, 1787.]
+
+     [Footnote A2-6-7: The Methuen treaty (1703) was considered
+     an English master-piece, because Portugal had actually
+     exported a great deal of Brazilian gold to England. _Pombal_
+     said, in 1759: "Through unexampled stupidity, we permit
+     ourselves to be clothed, etc. England robs us every year, by
+     its industry, of the products of our mines.... A severe
+     prohibition of the exportation of gold from Portugal might
+     overthrow England." (_Schaefer_, Portug. Gesch., V, 494 ff.)
+     And yet the treaty only says that Portugal withdraws its
+     prohibition of English woolen wares, and restores the former
+     duties (15 per cent.), while England continues to permit
+     Portuguese wine to pay a duty 1/3 less than French wines!
+     Singular doctrine of _Adam Smith_ (W. of N., IV, ch. 6), and
+     still more of _McCulloch_ (Comm. Dict., v. Commercial
+     Treaties), that this commercial treaty was unfavorable to
+     England and very favorable to Portugal, although, in fact,
+     later a duty of only about 3 per cent. was imposed here on
+     English commodities. (_Buesch_, Werke, II, 62.) The
+     English-French commercial treaty of 1786 introduces in the
+     place of the former prohibition, duties of 10, 12 and 15 per
+     cent. for a number of industrial products. The French soon
+     came to believe that they had been taken advantage of here.
+     _A. Young_ found the desire very general in the north of
+     France, to get rid of the Eden treaty even through a war.
+     (Travels in France, I, 73.) Many of the _cahiers_ of the
+     third estate demand that no treaty of commerce should be
+     entered into without previous consultation with the
+     industries interested. (Acad. des Sc. morales et polit.,
+     1865, III, 214.) But in England, also, bitter complaints of
+     the opposition, to which Pitt replied, that commercial
+     treaties between agricultural and industrial countries
+     result to the advantage of the latter, independent of the
+     fact that England obtained a new market of 24,000,000, and
+     France of only 8,000,000 persons. Compare the extracts in
+     _Lauderdale_, Inquiry, App., 14. Forcade: Revue des deux
+     Mondes, 1843.]
+
+     [Footnote A2-6-8: Urged very largely in southern Germany
+     against the Prussian-French commercial treaty of 1862. But
+     is it really an "advantage" for France to have in the
+     interior more toiling (_Plackereien_) for inlanders as well
+     as for foreigners? Or that its consumers must pay high taxes
+     to the producers of certain wares?]
+
+     [Footnote A2-6-9: Seldom in antiquity. Compare, however,
+     Inscr. Gr., II, No. 256, and the reciprocal granting of the
+     rights of citizenship of Athens and Rhodes. (_Livy_, XXXI,
+     15.) Among the moderns, Flanders followed free-trade
+     principles similar to those followed later by Holland, at
+     the beginning of the fourteenth century; for instance, it
+     refused to gratify France by breaking off its trade with
+     Scotland. (_Rymer_, Foedera, II, 388.) Florence, in 1490,
+     promised the English, that in all treaties to be entered
+     into with others, it would permit it to enter. In the
+     French-Florentine commercial treaty of 1494, it is
+     stipulated with the Florentines that their ships _Gallica
+     esse intelligantur_ and their merchants _tanquam veri et
+     naturales Galli_ etc. (Decima, II, 308.) Swedish treaty with
+     Stralsund, 1574, that every privilege granted to a Baltic
+     city should also be, of itself, to the advantage of
+     Stralsund. Mutual equal treatment of subjects promised
+     between Portugal and England, 1642; Portugal and Holland,
+     1661; mutual treatment on the basis of the most favored
+     nation: between England and Portugal, 1642; Holland and
+     Spain, in the peace of Utrecht; Spain and Portugal, 1713;
+     Spain and Tuscany, 1731; England and Russia, 1734. But how
+     far such principles were removed from the beginning of the
+     eighteenth century is shown by the speech from the throne of
+     the 28th of January, 1727, of George I., in which the
+     Austro-Spanish treaty of 1725, that placed the subjects of
+     Austria in the colonial empire of Spain on an equal footing
+     with the English and Dutch, is described as a violation of
+     the dearest interests of England, and in which it is said
+     that England must defend its own unquestionable right
+     against the covenant entered into to violate public faith
+     and the most solemn treaties; that it might be that Spain
+     thought of subjecting England once more to the popish
+     pretender. Even in 1713, it was one of the principal points
+     in controversy between the Tories and Whigs, whether, in a
+     commercial treaty with France, the latter should be accorded
+     the rights of the most favored nations. Compare _Daniel
+     Defoe_, A Plan of the English Commerce, and _per contra_,
+     The British Merchant.]
+
+     [Footnote A2-6-10: English treaties with Prussia, 1824; the
+     Hanse cities, 1825; with Sweden, 1826; France, 1826 (England
+     removed the limitations still retained without compensation,
+     in 1839); Naples, 1845; Sardinia, Holland and Belgium, 1851.
+     Prussian treaties with Russia, 1825; Naples, 1847; Holland,
+     1851. French with Bolivia, 1834; Holland, 1846 (in which
+     reciprocity is extended even to the navigation of rivers);
+     Denmark, 1842; Venezuela, Equador and Sardinia, 1843; Russia
+     and Chili, 1846; Belgium, 1849; and Portugal, 1853.]
+
+     [Footnote A2-6-11: Marking an epoch in this respect are the
+     treaties of the United States with Holland (Oct. 8, 1782),
+     Sweden (April 3, 1783), Frederick the Great (Sept. 10,
+     1785), and England (Oct. 28, 1795); recently that entered
+     into by Napoleon III. with England in 1860, and with the
+     Zollverein in 1862.]
+
+     [Footnote A2-6-12: The expression "most favored" is not
+     always strictly construed. Thus, for instance, France
+     granted the right of coast-sailing proper (_cabotage_) only
+     to Spain. States frequently promise only: _s'appliquer
+     reciproquement toute faveur en matiere de commerce et de
+     navigation qu'ils accorderaient a un autre etat gratuitement
+     ou avec compensation_.]
+
+     [Footnote A2-6-13: Napoleon III. had a preference for
+     commercial treaties, because these, as acts of foreign
+     politics, lay in the plenitude of his imperial power (art. 6
+     of the constitution of 1852; senatus consultum of Dec. 23,
+     1852), while in legislation, his free trade tendencies were
+     limited by popular representation. And so also Prussia, by
+     its commercial treaty with him (1862), was actually freed
+     from the hindrances which the free veto of the
+     Zollverein-conferences would have opposed to its reform.
+     Opposition to the treaty-form because too binding.
+     (_Chaptal_, De l'Industrie Francaise, II, 242 ff.) The
+     free-trade party lauds it precisely on this account. See the
+     report of the Leipzig Chamber of Commerce for 1874-75, p.
+     41.]
+
+
+
+
+APPENDIX III.
+
+THE INDUSTRIAL PROTECTIVE SYSTEM AND INTERNATIONAL FREE TRADE.
+
+
+
+
+THE INDUSTRIAL PROTECTIVE SYSTEM AND INTERNATIONAL FREE TRADE.
+
+
+SECTION I.
+
+PROXIMATE ECONOMIC EFFECTS OF THE INDUSTRIAL PROTECTIVE SYSTEM.
+
+That the principal measures which the mercantile system recommended,
+artificially to increase a nation's wealth, could not produce the
+immediate effects expected of them, has been shown, especially from the
+natural history of money. Their proximate economic consequences
+necessarily consisted in this, that they diverted the existing
+productive forces of the nation from their places of application
+(_Verwendungsplaetzen_) hitherto, to others which the government thought
+more advantageous.
+
+A. If home producers are in a condition to offer their commodities as
+good and as cheap as foreigners, all protection of the former by import
+duties, or even by prohibitions, is superfluous. The home producer has,
+as a rule, not only the advantage of the smaller cost of freight to the
+place of consumption,[A3-1-1] but that of being earlier informed,
+because of his proximity to consumers, of a change in their
+tastes.[A3-1-2] If, indeed, foreigners could supply us better and
+cheaper, and if they are kept from supplying our market only by
+artificial means, the state compels our consumers to a sacrifice of
+enjoyment;[A3-1-3] and such a sacrifice as is not fully compensated for
+by the profit made by the favored producers in any manner. The latter
+are generally soon compelled by home competition to arrange their prices
+in accordance with the rate of profit usual in the country. If they had
+no "protection" they would simply employ their productive forces in
+other branches of production; and in those in which they were equal or
+even superior to foreign competitors. By means of the products thus
+obtained, the people might then get in exchange all those commodities
+from foreign countries, the production of which it is, according to the
+laws of the division of labor, better to leave to foreign
+countries.[A3-1-4] Since one nation can lastingly pay another nation
+only with its own products, any limitation of imports must, under
+otherwise equal circumstances, be attended by a corresponding limitation
+of exports.[A3-1-5] Directly, therefore, these hindrances to importation
+produce no increase, but only a change in the direction (_Umlenkung_) of
+the national forces of capital and labor; an increase, only in case that
+foreign producers are thereby caused to transfer their productive forces
+within our limits;[A3-1-6] which may certainly be considered the
+greatest triumph of the protective system. Hence it is absurd when an
+equal extension of "protection" to all the branches of a nation's
+economy is demanded, as it is so frequently, in the name of justice.
+There is here no real protection whatever, analogous, for instance, to
+the protection afforded by the judge, but a favor which can be accorded
+to no one without injuring some one else.[A3-1-7]
+
+     [Footnote A3-1-1: It is of course different in the working
+     (_Verarbeitung_) of foreign raw material. Much also depends
+     on the situation of the industrial provinces. For instance,
+     manufactured articles can reach the interior of Spain and
+     the Western states of the American Union only after they
+     have passed the industrial coast-regions of both countries.
+     In Russia, on the other hand, the center is the principal
+     industrial region; and hence the coast may be actually
+     nearer to foreign than to home manufacturers. Similarly, in
+     France, at least for iron and coal. Compare _Adam Smith_, W.
+     of N., II, p. 279 Bas.]
+
+     [Footnote A3-1-2: People would, however, have to calculate
+     on the foolish luxury which despises the home product
+     because "it came from no great distance." World-supremacy of
+     Paris fashions! A manufacturer of excellent German
+     _Schaumwein_ (foaming wine) complained to me, in 1861, that,
+     after suffering heavy losses, he was compelled by his
+     customers to adopt French labels. Here, a wise prince may
+     have a favorable influence by his example. Louis XIV.
+     himself insisted, when his mother died, that the court
+     should use only French articles of mourning. _Gee_, Trade
+     and Navigation, p. 46. Augustus I., of Saxony, always wore
+     home cloth. (_Weisse_, Museum fuer Saechsische Geschichte, II,
+     2, 109.) Similar requirements by the prince of Orange (1749)
+     of all officials: Richesse de Hollande, II, 317. Dutch
+     executioners were dressed in calico. (Discourse of Trade,
+     Coyn, etc., 1697.) American popular stipulations not to wear
+     foreign articles of luxury. (_Ebeling_, Geschichte und
+     Erdbeschreibung, II, 481.) Rhode Island tailors placed the
+     working wages for home stuffs much lower than for foreign.
+     (II, 149.)]
+
+     [Footnote A3-1-3: _Prince Smith_ calls protective duties
+     scarcity-duties (_Theuerungszoelle_). Because of this
+     increased dearness of the "protected" commodities, consumers
+     can no longer pay for as many other home commodities. If the
+     industry was previously in existence, the protective duty
+     imposed is wont to enhance the price, not only of the
+     foreign commodity, but also of the home commodity.]
+
+     [Footnote A3-1-4: If, for instance, the English had never
+     had a protective tariff on silk, nor the French a protective
+     tariff on iron, the former would probably get all the silk
+     commodities they want from France and pay for them in iron
+     ware. In this way, both nations would be well off in what
+     concerns the relation between the cost of production and the
+     satisfaction of wants. _Say_ calls protective duties a fight
+     against nature, in which we take pains to refuse a part of
+     the gifts which nature offers us. He leaves himself open to
+     the charge of exaggeration, however, when he compares a
+     nation that wants to produce everything itself to a
+     shoemaker who wanted to be tailor, carpenter, to build
+     houses and cultivate a farm also. Although no nation is
+     all-sided, yet every nation is a great deal more-sided than
+     an individual.]
+
+     [Footnote A3-1-5: Whoever keeps a people from purchasing in
+     the cheapest market, thereby prevents their selling in the
+     dearest. (_McCulloch._) It was no mere desire of revenge
+     that induced Holland, in the 17th century, to threaten the
+     Poles, in case the enhancement of their duties continued in
+     Danzig and Pillau, they would supply their corn-want from
+     Russia, (_Boxhorn_, Varii Tractat. polit., p. 240.) Thus the
+     tariff-measures adopted by France against the German cattle
+     trade and the Swedish iron trade promoted the growth of the
+     Crefeld silk manufacture, and lessened the exportation of
+     French wine to Sweden. When, in 1809, England heavily taxed
+     Norwegian wood, in favor of Canada, the Norwegians began,
+     instead of purchasing English manufactured articles, to
+     supply themselves from Hamburg, Altona and France. (_Blom_,
+     Norwegen, I, 257.)]
+
+     [Footnote A3-1-6: _Fr. List_ assumed altogether too
+     unconditionally such an effect from import duties to be the
+     rule. The more developed the self-confidence of a nation is,
+     the more vigorous the life of its industries, the more
+     many-sided the commerce of its people; the less disposed are
+     its industrial classes to give up their home and carry their
+     market with them. But, for instance, Swiss labor and, still
+     more, Swiss capital have been induced by the tariff-systems
+     of the great neighboring countries to settle in Muehlhausen,
+     Baden and Voralberg, or at least to establish branch houses
+     in these places. Similarly, Neumark cloth makers were
+     induced to emigrate to Russia, and Nuernberg industrial
+     workmen to Austria (_Roth_, Geschichte des Nuernbergen
+     Handels, II, 170) etc. Compare _Burkhardt_, c. Basel, I, 74;
+     _Boehmert_, Arbeiterverhaeltnisse der Schweiz, I, 16 seq.; II,
+     17.]
+
+     [Footnote A3-1-7: Compare _Alby_ in the Revue des deux
+     Mondes, Oct., 1869, and, _per contra_, Cairnes, Principles,
+     p. 458. The misfortunes of war or internal disquiet have
+     frequently driven away the best labor-forces of an old
+     industrial state, and thus powerfully promoted a young
+     protective system in the neighborhood. Reception of
+     Byzantine silk-weavers in Venice, during the crusade to
+     Constantinople, of Flemish wool-weavers in England, under
+     Edward III. (_Rymer_, Foedera, III, 1, 23) and Elizabeth; of
+     Huguenot industrial workmen under the great elector, etc.
+     The growth of the Zurich silk industry by the settlement
+     there of expelled Protestants from Locarno.
+
+     England, indeed, had, up to 1849, protective duties both for
+     industry and agriculture. But the protective duties were of
+     no real importance, except in the case of the latter,
+     because the greater part of England's industrial products
+     were superior to foreign competition without the help of
+     protective duties. Something similar is true of most duties
+     on raw material in the United States.]
+
+
+SECTION II.
+
+EFFECT OF EXPORT DUTIES, etc., ON RAW MATERIAL.--EXPORT PREMIUMS.
+
+B. Export duties on raw material, and prohibitions of the exportation of
+raw material, lower the price of such articles, by preventing the
+competition of foreign buyers.[A3-2-1] To this loss of the producers of
+raw material, there is, in the long run, no corresponding gain to the
+manufacturers. Rather will there be, when freedom of competition
+prevails at home, an increased flow of the forces of production to the
+favored branch, because of its rate of profit, which is greater than
+that usual in the country, and a corresponding flow from the injured
+branch, until such time as the level of profit usual in the country is
+restored.[A3-2-2] Hence here, also, the final result is only a change of
+the direction, not a direct increase of the productive forces.[A3-2-3]
+
+C. In the case of export-premiums, it is necessary to distinguish
+between the mere refunding back of the taxes which have been paid on the
+assumption of a home consumption which has not taken place (drawbacks),
+and the actual making of donations because of the exportation of goods
+(bounties). The former produces no result except to maintain the
+possibility of a production which would otherwise have been prevented by
+the tax. The latter, on the contrary, compels all those who are subject
+to taxation to make a donation to one particular class of persons
+engaged in industry.[A3-2-4] Moreover, all consumers are compelled to
+pay a higher price for the commodity to the extent that the market
+price, inclusive of the premium to be obtained abroad, is higher than
+the home market price hitherto usual. But, as the cost of production has
+not increased, this profit of the producers, which is greater than that
+usual in the country, must induce other productive forces to enter into
+the favored branch; so that here, also, the lasting result is not a
+higher rate of profit of the individuals engaged in the industry, but an
+extension of the industry itself. Foreign countries chiefly reap the
+greatest advantage from this course, since they obtain the commodities
+at gift-prices.[A3-2-5] The premiums paid, not for exportation, but for
+the production of a commodity, have a meaning akin to this.[A3-2-6]
+Either the industry could not maintain itself without premiums, in which
+case the state encourages a losing production,--and the more there is
+produced the greater is the loss to the national economy;--or the
+industry might exist without the payment of premiums, and then the newly
+increased profit would lead to an extension of the industry. Exportation
+would follow, and all the effects of export-premiums appear.[A3-2-7]
+
+     [Footnote A3-2-1: Rags in Silesia dearer than in Bohemia by
+     the full amount of the Austrian export duties (Gutachten
+     ueber die Erneuerung der Handelsvertraege; 1876, p. 9). When
+     the English export-prohibitions were extended to Scotland,
+     the price of Scotch wool fell about 50 per cent. (_A.
+     Smith_, W. of N., IV, ch. 8.) In the case of foreign raw
+     material, the reexportation of which is prevented, the
+     object of such prohibitions may be largely frustrated. When
+     England, to promote its dyeing industries, left the
+     importation of colors entirely free, but allowed their
+     exportation only under heavy duties (8 George I., c. 15),
+     the importers provided the market always with somewhat less
+     than the amount required, and thus raised the price.]
+
+     [Footnote A3-2-2: Export hindrances have been continued
+     longest in favor of manufacturing industries
+     (_Verarbeitungsindustrie_), in the case of such commodities
+     as are not intentionally produced, such as rags, ashes,
+     etc., but which are collected only as the remains of some
+     other kind of production or consumption. "Negative
+     production," according to _Stilling_, Grundsaetze der
+     Staatswirthschaft, 803, because it is desirable to produce
+     as little as possible of such raw material. But the dearer
+     rags, for instance, are, the more carefully are they
+     collected.]
+
+     [Footnote A3-2-3: When the French prohibition of the
+     exportation of hemp was extended to Alsace, its production
+     decreased from 60,000 to 40,000 cwt. (_Schwerz_,
+     Landwirthschaft des Nieder-Elsasses, 378 ff.) Frederick the
+     Great soon carried his prohibition of the exportation of raw
+     wool to such an extent as to prohibit the exportation even
+     of unshorn sheep, and to punish the dropping of a sheepfold
+     by a fine of 1,000 ducats. (Preuss. Gesch. Friedrichs III.,
+     42.) Here, also, belong prohibitions relating to the
+     exportation of corn, which force considerable capital, etc.
+     into industry. The prohibition of the exportation of corn in
+     England, and the permitting of the exportation of cattle,
+     wool, etc., was one of the principal causes why there were
+     so many complaints at the time of the turning of land used
+     for tillage into pasturage-land. When, in 1666, the
+     exportation of Irish cattle to England was prohibited, it
+     produced, at the outset, great need in Ireland, but
+     afterwards a flourishing condition of Irish industry.
+     (_Hume_, History of England, ch. 64.)]
+
+     [Footnote A3-2-4: The effect must be very much the same when
+     the right of buying up all the raw material of a certain
+     district is granted to one factory exclusively. The elector,
+     Augustus of Saxony, did this frequently. Compare _Falke_,
+     Gesch. des Kurf., A. v. S., 190-212, 345.]
+
+     [Footnote A3-2-5: As to how, by means of German drawbacks
+     (_Rueckzoelle_) it is possible for beet-sugar to be offered at
+     a cheaper rate in Brazil than home cane-sugar, see
+     _Wappaeus_, Brazilien, 1830. The French export-premiums for
+     sugar amounted, in 1856, to over 8,000,000 francs. Frenchmen
+     subject to taxation were obliged to pay this amount, and
+     thus add to the already increasing price which they had to
+     pay for that article. (Journ. des Econom., Juill., 1857.) In
+     England, in 1742, the export-premiums for linen were
+     defrayed by enhanced entry-duties on cambrics. (15 and 16
+     George II., c. 29.)]
+
+     [Footnote A3-2-6: As to how English export-premiums
+     sometimes made English commodities cheaper in Germany than
+     in England, see _Buesch_, Werke, XIII, 82. There are, indeed,
+     gifts which may ruin the receiver of them, as, for instance,
+     when one gets his rival intoxicated at his expense before
+     the decisive solicitation. _Timeo Danaos et dona ferentes_
+     (cited by Fox and Burke against the Eden treaty: _Hansard_,
+     Parl. History, 1787, Jan. p. 402, 488).]
+
+     [Footnote A3-2-7: It is said that Maria Theresa paid
+     1,500,000 florins a year for this purpose. (_Sonnenfels_,
+     Grundsaetze, II, p. 179.) England, between 1806 and 1813,
+     altogether, L6,512,170. _Colquhoun_, Wohlstand, Macht, etc.,
+     Tieck's translation, I, 251.]
+
+
+SECTION III.
+
+THE FREE-TRADE SCHOOL.
+
+From what has been said, we may understand why the so-called free-trade
+school, with its atomistic over-valuation of the individual and the
+moment, rejects all those measures of the industrial protective
+system.[A3-3-1] As such measures really injure the oppressed portions of
+the people more than they help the favored classes, their introduction,
+it is said, uniformly depends on this, that single classes of producers
+understand their private interests better than others, and are better
+organized than other producers and especially better than consumers, to
+take care of their interests.[A3-3-2] Adam Smith approves import
+hindrances for the purpose of artificially promoting an industry only in
+two cases:
+
+A. When military safety demands it. Hence he calls the English
+navigation act, that great prohibitive and protective law intended to
+advance the merchant marine, the wisest perhaps of all English
+commercial regulations, although he clearly saw that it compelled
+England to sell her own commodities cheaper and buy foreign commodities
+dearer.[A3-3-3]
+
+B. When the import duty is no more than sufficient to balance the tax
+imposed on the corresponding home product. Smith rightly remarks that a
+universally heavier taxation by the home country, but which affected all
+branches of its production equally, operated like diminished natural
+fertility, and hence does not make any equalizing tax for foreign trade
+necessary.
+
+The person who has only a modest opinion of the power of his own reason,
+and therefore a just one of the reason of other men and other times,
+will not believe that a system like the industrial protective system
+which the greatest theorizers and practitioners favored for centuries,
+and which governed all highly developed countries in certain periods of
+their national life, proceeded entirely from error and deception. It
+really served, in its own time, a great and regularly occurring want;
+and the error consisted only in this, that, partly through improper
+generalization by doctrinarians and partly by the avarice of the
+privileged classes and the inertia of statesmen, the conditioned and
+transitory was looked upon as something absolute.[A3-3-4]
+
+     [Footnote A3-3-1: _P. de la Court_, in his freedom of trade,
+     has in view not the interest of consumers--and least of all
+     of the whole world--but the interest of the commercial
+     class. Compare Tueb. Ztschr., 1862, p. 273. Similarly,
+     _Child_, Discourse of Trade, 1690; whereas _D. North_,
+     Discourses upon Trade (1690), may be called a free-trader in
+     the sense in which the expression is used to-day. No nation
+     has yet grown rich by state-measures; but peace, thrift and
+     freedom, and nothing else, procure wealth. (Postscr.)
+     _Davenant_ also zealously opposes the craving of a people to
+     produce everything themselves, to want only to sell, etc. He
+     considered very few laws on commerce a sign of a flourishing
+     condition of trade. (Works, I, 99, 104 ff.; V, 379 ff., 387
+     seq.) _Fenelon's_ antipathy for import and export duties in
+     Telemaque, a part of his general opposition to the _siecle
+     de Louis XIV_. The view of the Physiocrates (_La police du
+     commerce interieur et exterieur la plus sure, la plus
+     exacte, la plus profitable a la nation et a l'etat consiste
+     dans la pleine liberte de la concurrence_: _Quesnay_,
+     Maximes generales, No. 25) is directly connected with their
+     deepest fundamental notions of _produit net_ and _impot
+     unique_. _Turgot_ vindicates the interests of workmen
+     against protective duties, for whom no compensation is
+     possible, where one industry gains by its being favored in
+     the same way that it loses when another is favored. (Sur la
+     Marque de Fer, I, p. 376 ff., Daire.) "Those who cry so
+     loudly for protective duties are partly thoughtless persons
+     who wish to avoid the consequences of bad speculations, and
+     in part shrewd persons who would like to earn during the
+     first years a rate of profit higher than that usual in the
+     country." (_Rossi._) _Bastiat_ ridicules the advocates of a
+     protective tariff by the petition of the lamplighters, lamp
+     manufacturers, etc., that to advance their industry, and
+     indirectly almost all others, the mighty foreign competition
+     of the sun might be removed from all houses. (Sophismes
+     econ., ch. 7.) To him, the protective system is precisely
+     the system of want; freedom of trade, the system of
+     superabundance. Political economy would have fulfilled its
+     practical calling, if, by means of universal freedom of
+     trade, it had done away with all that is left of that system
+     which excludes foreign commodities because they are cheap,
+     that is, because they include _une grande proportion
+     d'utilite gratuite_. (Harmonies, p. 174, 306.) _Cobden's_
+     pet expression: "Free trade, the international law of the
+     Almighty!" (Polit. Writings, II, 110.) _K. S. Zachariae_
+     calls the protective system a step introductory to communism
+     (Staatsw. Abh., 100), because it nearly always leads to
+     over-population and _List's_ system, a politico-economical
+     absurdity. (Vierzig Buecher vom Staate, VII, pp. 23, 92.)]
+
+     [Footnote A3-3-2: Among the many frequently wonderful
+     speeches by which persons engaged in industry are wont to
+     support their motion for protective duties, etc., the
+     following are particularly characteristic. The long struggle
+     of English manufactures against the East Indian Company,
+     since the later portion of the seventeenth century. Compare
+     _Pollexfen_, England and East India inconsistent in their
+     Manufactures (1697), against which _Davenant_, at the
+     solicitation of the company, wrote his Essay on the E. I.
+     Trade (1697). Prohibition of East Indian commodities, 11 and
+     12 Will. III., ch. 10. The struggle did not stop until the
+     middle of the eighteenth century, when India was outflanked
+     by English machines. When Pitt, in 1785, labored for the
+     abolition of the tariff-barriers against Ireland, English
+     manufacturers, and among others Robert Peel, declared that
+     they would be forced in consequence to transfer a part of
+     their manufactories to Ireland! (_McCulloch_, Literature of
+     Political Economy, p. 55.) _Say_ tells of a proposition made
+     by the hat-makers of Marseilles to prohibit foreign straw
+     hats (1. c).]
+
+     [Footnote A3-3-3: W. of N., IV, ch. 2. According to _Roger
+     Coke_, England's Improvement (1675), ship-building in
+     England became dearer in a few years by about one-third, on
+     account of the navigation act; and the wages of sailors
+     advanced to such an extent that England lost its Russian and
+     Greenland trade almost entirely, and the Dutch obtained the
+     control of it. This _J. Child_, Discourse of Trade, admits,
+     but still calls the navigation act the _magna charta
+     maritima_. Similarly, _Davenant_, Works, I, 397. Here the
+     relation of the cost to the immediate product can as little
+     decide as it can against the exercise of troops or the
+     construction of forts. _Adam Smith_ allows the same reasons
+     to apply to export premiums for sail-cloth and gunpowder
+     (IV, ch. 5). Recently, however, _Buelau_
+     (Staatswirthschaftlehre, 339; Staat und Industrie, 220
+     seq.;) has argued against all these exceptions of Adam
+     Smith.]
+
+     [Footnote A3-3-4: _Schleiermacher_ (Christ. Sitte, 476)
+     calls the polemics which can see nothing but error in a
+     refuted theory, immoral.]
+
+
+SECTION IV.
+
+FURTHER EDUCATIONAL EFFECTS OF THE INDUSTRIAL PROTECTIVE SYSTEM.
+
+The sacrifices which the protective system directly imposes on the
+national wealth consist in products, fewer of which with an equal
+straining (_Anstrengung_) of the productive forces of the country, are
+produced and enjoyed, than free trade would procure. But it is possible
+by its means to build up (_bilden_) new productive forces, to awaken
+slumbering ones from their sleep, which, in the long run, may be of much
+greater value than those sacrifices. Who would say that the cheapest
+education is always the most advantageous?[A3-4-1] Only by the
+development of industry also, does the nation's economy become
+mature.[A3-4-2] The merely agricultural state can attain neither to the
+same population nor the same energy of capital, to say nothing of the
+same skillfulness of labor, as the mixed agricultural and industrial
+state; nor can it employ its natural forces so completely to
+advantage.[A3-4-3] How many beds of coal, waterfalls, hours of
+leisure,[A3-4-4] and how much aptitude for the arts of industry, can be
+turned to scarcely any account in a merely agricultural state? If,
+therefore, the protective system could materially promote a national
+industry, or if it made such industry possible, for the first time, the
+sacrifice connected therewith, in the beginning, should be considered
+like the sacrifice of seed made by the sower;[A3-4-5] but this can be
+justified only on the three following conditions: that the seed is
+capable of germination; that the soil be fertile and properly
+cultivated, and the season favorable.[A3-4-6] [A3-4-7]
+
+     [Footnote A3-4-1: _List_, Nationales System der polit.
+     Oekonomie, kap. 12, contrasts two owners of estates, each of
+     whom has five sons, and can save 1,000 thalers a year. The
+     one brings his sons up as tillers of the ground (_Bauern_ =
+     peasants) and puts his savings out at interest. The other,
+     on the contrary, has two of his sons educated as _rational_
+     (_rationelle_) agriculturists, and the others as intelligent
+     industrial workers, and at a cost which prevents the
+     possibility of his accumulating any more capital. Which of
+     the two has cared better for the standing, wealth, etc. of
+     his posterity; the adherent of the "theory of exchangeable
+     values" or the adherent of the doctrine of "the productive
+     forces?"]
+
+     [Footnote A3-4-2: The rent of the land of Gr. Botton, in
+     Lancashire, was estimated in 1692 at L169 per annum; in
+     1841, at L93,916. (_H. Ashworth._)]
+
+     [Footnote A3-4-3: The pottery district of Staffordshire was
+     formerly considered very unfertile. It was industry that
+     first showed how the rich and varied beds of clay at the
+     surface, and the wealth of coal under them, could be fully
+     utilized.]
+
+     [Footnote A3-4-4: Blind free-traders always like to assume
+     that every man capable of working always busies himself;
+     whereas idleness frequently excuses the wasting of its time,
+     by the plea that a remunerative market of the possible new
+     products is improbable, or at least uncertain. Compare _J.
+     Moeser_, P. Ph., I, 4. _Kroencke_, Steuerwesen (1804), 324,
+     328 seq., and even the first German reviewers of Adam Smith
+     in _Roscher_, Gesch. der N. Oek. in Deutschland, II, 599.]
+
+     [Footnote A3-4-5: _List_ calls attention to the case of the
+     stenographic apprentice who writes more slowly for a time
+     than he was wont to formerly.]
+
+     [Footnote A3-4-6: Let us suppose that a country had hitherto
+     produced $10,000,000 worth of corn, and that of this amount
+     it had sent $1,000,000 worth into foreign countries as a
+     counter-value for foreign manufactured articles. It now, by
+     means of a protective tariff, establishes home manufactures,
+     through the instrumentality of which a coal bed or water
+     fall is turned to account. The workmen in the manufactories
+     henceforth consume what was formerly exported. Of course
+     such a change is not effected without loss; but this loss
+     ceases as soon as the home industry becomes the equal of the
+     foreign industry which was crowded out. And then the forces
+     which have been made useful in the meantime appear as clear
+     gain. _List_ not unfrequently called special attention to
+     the fact that a consumption of 70,000 persons engaged in
+     home industries means as much to German agriculture as all
+     that it exported to England from 1833 to 1836.
+     (Zollvereinsblatt, 1843, No. 5.)]
+
+     [Footnote A3-4-7: _Adam Smith's_ free-trade doctrine has
+     always been contradicted in Germany. Even in 1777, his first
+     great reviewer, _Feder_, says that many foreign commodities
+     can be dispensed with without damage; and that industries
+     which indemnify the undertakers of them only after a time
+     but which are then very useful to the community in general,
+     would not be begun always without special favor shown them.
+     (_Roscher_, Geschichte der National Oekonomie, II, p. 599.)
+     _Kroencke_, Steuerwesen, 324 ff., speaks of attempts towards
+     the education of industries by taxation-favors: "If of ten,
+     only one succeeds, even that is to be considered a great
+     gain." But modern protectionists base themselves chiefly on
+     their interest in the independence of the country, precisely
+     as the free-traders do on that of individual freedom. _Ad.
+     Mueller_, with his organic way of comprehending things,
+     opposes the assumption of a merely mercantile world-market,
+     in which all the merchants engaged in foreign trade
+     constitute a species of republic. (_Quesnay._) He also
+     rejects on national grounds the universal freedom of trade
+     as well as the universal empire akin to it; although as a
+     means of opposing it, he suggests not so much a protective
+     tariff as the intellectual cultivation of nationality in
+     general. (Elemente der Staatskunst, 1809, II, 290, III, 215,
+     II, 240, 258.) According to _Soergel_ (Memorial an den
+     Kurfuerst v. Sachsen, 1801,) commercial constraint
+     (_Handelszwang_), by means of export and import duties, is
+     useful in the childhood of manufactures, afterwards
+     injurious, because the powerful incentive to perfection is
+     wanting where no competition is to be feared (67). _P.
+     Kaufmann_, the opponent of Smith's balance-theory, demands
+     moderate protection against the otherwise irresistible
+     advantages to already developed industrial nations.
+     (Untersuchungen, 1829, I, 98 ff.) The principal advocate in
+     this direction is _Fr. List_, with a great deal of sense for
+     the historical, but with little historical erudition; and
+     after the manner of an intelligent journalist, he reproaches
+     the free-trade school with baseless cosmopolitanism, deadly
+     materialism, and disorganizing individualism. He
+     distinguishes in the development of nations five different
+     stages: hunter-life, shepherd-life, agriculture, the
+     agricultural-manufacturing period, the
+     agricultural-manufacturing-commercial period; and he demands
+     that the state should lend its assistance in the transition
+     from the third to the fourth stage, in the nursing or
+     planting of manufacturing forces in connection, throughout,
+     with the enfeebling of feudalism and bureaucracy, the
+     increase of the middle class, with the power of public
+     opinion, especially of the press, the strengthening of the
+     national consciousness from within and without. Compare
+     _Roscher's_ review in the Goett. gelehrten A. 1842, No. 118
+     ff. As to how List resembles, and differs from Ad. Mueller,
+     see _Roscher_, Gesch. der N. O., II, 975 ff.; _von Thuenen's_
+     independent defense of a protective tariff; Isolirter Staat,
+     II, 2, 81, 92 ff., 98; Leben, p. 255 seq. The socialist
+     _Marlo_ (Weltoekonomie, I, ch. 9, 10) distinguishes common
+     products (_Gemeinprodukte_) which may be obtained equally
+     well in every properly developed country, and peculiar
+     products (_Sonderprodukte_), like coffee, wine, etc. With
+     respect to the former, he agrees with List; in regard to the
+     latter, with Smith. A protective tariff exerts a constraint
+     on consumers, compelling them to abridge their enjoyments
+     somewhat, and to employ these now in the procuring of
+     instruments of production, in the exercise of skill needed
+     in production and the accumulation of capital. At the same
+     time foreigners should be kept from utilizing home natural
+     forces, and where possible, home manufactures should be
+     helped to utilize foreign natural forces. _Marlo_, indeed,
+     assumes, as one-sidedly as the followers of Smith do the
+     contrary, that without the tariff the workmen in question
+     would not be employed at all; but he is right in this, that
+     the most fruitful employment of the forces of labor, and the
+     keeping of them most completely busy, mutually replace each
+     other. In France, even _Ferrier_, Du Gouvernement considere
+     dans ses Rapports avec le Commerce (1808), had defended the
+     Napoleonic continental system. See _Ganilh_, the French
+     List, Theorie de l'Economie politique (1822), who grades the
+     branches of a nation's economy in a way the reverse of Adam
+     Smith, and finds the protective system necessary for the
+     less developed nations, to the end that they may not be
+     confined to the most disadvantageous employments of capital
+     (II, p. 192 ff.). Especially is a greater population made
+     possible in this way (248 ff.). Similarly, _Suzanne_,
+     Principes de l'E. polit., 1826. Further, _H. Richelot_,
+     List's translator. _M. Chevalier_, who recommends free trade
+     for France in our day so strongly, approves the system of
+     Cromwell and Colbert for their own time, and for a long time
+     afterwards (Examen du Systeme commercial, 1851, ch. 7): a
+     view which _Perin_ says is now shared by "all serious
+     writers." (Richesse dans les Societes Chretiennes, 1861, I,
+     p. 510.) _Demesnil-Marigny_, Les libres Echangistes et les
+     Protectionistes concilies (1860), bases his protective
+     system on this, chiefly, that it may greatly enhance the
+     money-value of a nation's resources to the detriment of
+     other nations, especially by the transformation of
+     agricultural labor, estimated in money, into the much more
+     productive labor of industry. The value in use of all the
+     national resources is doubtless greatest where full freedom
+     of trade obtains. In Russia, _Cancrin_ demands that every
+     nation should be to some extent independent in respect to
+     all the chief wants to the production of which it has at
+     least a middle (_mittlere_) opportunity; especially as all
+     civilization, even the higher development of agriculture,
+     must proceed from the cities. (Weltreichthum, 1821, 109 ff.
+     Oekonomie der menschlichen Gesellschaften, 1845, 10, 235 ff.)
+     America's most distinguished protectionist is _Hamilton_,
+     Report on the Subject of Manufactures presented to the House
+     of Representatives, December 5, 1791. _Jefferson's_ saying,
+     that the industry should settle by the side of agriculture,
+     leads us to _Carey_, who repeats the same idea with wearying
+     unwearisomeness; at first for the reason that the "machine
+     of exchange" should not be allowed to become too costly; but
+     afterwards rather from the Liebig endeavor to prevent the
+     exhaustion of the soil. He describes, indeed, how the East
+     Indian producer and consumer of cotton are united with one
+     another by a pontoon bridge which leads over England.
+     (Principles of Social Science, I, 378.) A good soil and good
+     harbors are the greatest misfortune for a country like
+     Carolina if free trade prevails, because it is turned into
+     an agricultural country (I, 373). The people who, after the
+     manner of the Irish, gradually export their soil, will end
+     by exporting themselves. _Carey_ would force colonies to
+     demean themselves like old countries from the first. If corn
+     be worth 25 cents in Iowa, and in Liverpool $1, for which 20
+     ells of calico are brought back, the Iowa farmer receives of
+     this quantity about 4 ells. Hence it would be no injury to
+     him were he to supply his want of cotton from a neighbor who
+     produced it at a cost four times as great as the Englishmen.
+     Analogies drawn from natural history, as, for instance, that
+     every organism, the lower it is in the scale of existence,
+     the greater is the homogeneity of its several parts; also a
+     deep aversion for centralization, and hatred of England,
+     cooperate in _Carey's_ recommendation of the protective
+     system, often called in the United States the "American
+     system," in opposition to the "British," advocated by
+     Webster against Calhoun and Clay against Jackson. _John
+     Stuart Mill_, Principles, V, ch. 10, 1, allows a protective
+     tariff temporarily, "in hopes of naturalizing a foreign
+     industry in itself perfectly suitable to the circumstances
+     of the country." Peel's colleague, G. Smythe, said, in 1847,
+     at Canterbury, that as an American (citizen of a young
+     country) or as a Frenchman (citizen of an old country with
+     its industry undeveloped), he would be a protectionist.
+     (Colton, Public Economy, p. 81.) Even _Huskisson_ admitted,
+     in 1826, that England in the seventeenth century had been
+     very much advanced by its protective system; and that he
+     would continue to vote even now for its maintenance, if
+     there were no reprisals to fear.]
+
+
+SECTION V.
+
+PROTECTION AS A POLICY.
+
+A. So long as a nation is, indeed, politically independent, but
+economically in a very low stage, it is best served by entire freedom of
+trade with the outside world; because such freedom causes the influences
+of the incentives, wants, and the means of satisfaction of a higher
+civilization to be soonest felt in the country.
+
+B. The further advance which consists in the development of home
+industries by the country itself, may, indeed, be rendered exceedingly
+difficult by the unrestricted competition of foreign industries, which
+are already developed. The carriers on of industry in an old industrial
+country have a superiority over those in the new, in the amount of
+capital, the lowness of the rate of interest, the skill of undertakers
+(_Unternehmer_) and workmen, generally, also in the consideration in
+which the whole country hold industry, and the interest they take in
+it;[A3-5-1] while in the country which has hitherto been merely
+agricultural, it happens only too frequently that industry is
+undervalued, and that young industrial talent is, as a consequence,
+forced to emigrate. How frequently it has happened that England by
+keeping down her prices for a time has strangled her foreign
+rivals.[A3-5-2] Even on the supposition of equal natural capacity, the
+struggle between the two industries would come to a close similar to
+that between a boy of buoyant spirits and an athletically developed man.
+What then is to be said of the cases in which the more highly developed
+nation is at the same time possessed of the more favorable natural
+advantages, such, for instance, as England possesses over Russia in her
+incomparable situation in relation to the trade of the world, and which
+gives her for all distant countries, without any active commerce, a
+monopoly-like advantage; farther, her magnificent harbors, streams, her
+well-situated wealth in iron and coal, etc. The advantages of mere
+priority weigh most heavily, when the great development of all means of
+transportation almost does away with the natural protection afforded by
+remoteness; and when, at the same time, a certain universality of
+fashion, which, as a rule, is governed by the most highly developed
+nations, causes national and local differences of taste, which could be
+satisfied only by national or local production, to become
+obsolete.[A3-5-3] Under such circumstances, it would be possible, that a
+whole nation might be made continually to act the part of an
+agricultural district (_plattes Land_), to one earlier developed,
+leaving to the latter, almost exclusively, the life of the city and of
+industry.[A3-5-4] A wisely conducted protective system might act as a
+preventive against this evil, the temporary sacrifices which such a
+system necessitates being justifiable where some of the factors of
+industrial production unquestionably exist but remain unused, because
+others, on account of the mere posteriority of the nation, cannot be
+built up. The abusive term "hot-house plant" should not be used where
+there is question only of transitory protection, and where there is the
+full intention to surrender the grown tree to all the wind, rain and
+sunshine of free competition, and where it is foreseen that it shall be
+so surrendered.[A3-5-5] [A3-5-6] The want of a certain economic
+many-sidedness which must be given to a nation manifests itself in a
+particularly urgent manner in times of protracted war. Here the error of
+so many free-traders, that different states should comport themselves
+towards one another as the different provinces of the same state do, is
+most clearly refuted.[A3-5-7]
+
+C. No less important is the political side of the question. Since the
+protective system forces capital and labor away from the production of
+raw material and into industry, it exerts a great influence on the
+relations of the classes or estates of a country to one another. The
+immense preponderance possessed in medieval times by the nobility,
+agriculture, the country in general as contradistinguished from the
+city, by the aristocratic and conservative elements, is curtailed in
+favor of the bourgeoisie, of industry, of the cities generally, and of
+the democratic and progressive elements. If when the history of a nation
+is at its highest point, there is supposed a certain equilibrium of the
+different elements, all of which are equally necessary to the prime of a
+nation's life, this height is now attained sooner than it would
+otherwise be. It is no mere accident that in almost every instance,
+those monarchs who humbled the medieval nobility and introduced the
+modern era, also established a protective system.[A3-5-8]
+
+D. However, such an education of industry can be attempted with proper
+success only on a large scale, that is, on a national basis. The least
+hazardous (_unbedenklich_) measure of the system, import-duties supposes
+a relatively short boundary line, such as only a great country, even
+where its formation is the most favorable imaginable, can
+possess.[A3-5-9] The greater the tariff territory (_Zollgebiet_), the
+less one-sided is its natural capacity wont to be, the sooner may an
+active competition in its interior be built up, while the foreign market
+always suffers from uncertainty. Hence all tariff-unions (_Zollverein_)
+between related states are to be recommended not only as financially but
+also as economically advantageous. Between states not related and of
+equal power, so far-reaching a reciprocity, embracing nearly the whole
+of economic policy, can scarcely be established; and it would be still
+harder for it to continue long. If the states not related are of very
+unequal power, the probable consequence would be the early absorption of
+the weaker by the stronger.[A3-5-10] [A3-5-11]
+
+     [Footnote A3-5-1: What an advantage it has been to English
+     industry and commerce that the state here so long considered
+     it a matter of honor to have its subjects well represented
+     in foreign countries, to extend their market, etc.]
+
+     [Footnote A3-5-2: _Hume_, in the parliamentary session of
+     1828, uses the expression "strangulate," to convey this
+     idea. As early as 1815, Brougham said: "It was well worth
+     while to incur a loss on the exportation of English
+     manufactures in order to stifle in the cradle the foreign
+     manufactures." The report of the House of Commons on the
+     condition of the mining district (1854) speaks of the great
+     losses, frequently in from three to four years, of L300,000
+     to L400,000, which the employers of labor voluntarily
+     underwent, in order to control foreign markets. "The large
+     capitals of this country are the great instruments of
+     warfare against the competing capital of foreign countries,
+     and are the most essential instruments now remaining by
+     which our manufacturing supremacy can be maintained."]
+
+     [Footnote A3-5-3: Before the development of the machinery
+     system, also, the preponderance of the greatest industrial
+     power could not be nearly as oppressive as later; especially
+     as in highly developed commercial countries, the wages of
+     labor are always high. (_List_, Zollvereinsblatt, 1843, No.
+     44, 1845, No. 5, ff.)]
+
+     [Footnote A3-5-4: "Shall the forester wait until the wind in
+     the course of centuries carries the seed from one place to
+     another, and the barren heath is converted into a dense
+     wood?" (_List_, Gesammelte Schriften, III, 123 seq.) When
+     the Romans had conquered an industrial country, its
+     industries began generally to flourish better, because of
+     the greater market opened to them; whereas, those which had
+     no industries before, continued, for the most part, to
+     remain producers of the raw material after the conquest,
+     also. Related to this is the phenomenon, that the provinces
+     not favored by nature, were much less backward in the middle
+     ages than they are to-day. Compare the description of the
+     misery of Mitchelstown, after the Earl of Kingston had
+     ceased to consume L40,000 there: _Inglis_, Journey through
+     Ireland, 1835, I, 142. The royal commission appointed to
+     investigate the misery of Spessart in 1852, show that the
+     home-made clothing had gone out of use there, and that the
+     wooden shoes, so well adapted to wooded countries, had been
+     changed for leather ones. This becoming acquainted with
+     foreign wants in a region not adapted to industries, without
+     a large market, greatly increased the distress. As soon as
+     such a region becomes an independent state, a productive
+     system would suggest itself.]
+
+     [Footnote A3-5-5: _List_ very well remarks that otherwise
+     most of our fruit trees, vines, domestic animals would be
+     "hot-house plants." And even men are brought up in the
+     hot-house of the nursery, the school, etc.
+     (Zollvereinsblatt, 1843, No. 36.)]
+
+     [Footnote A3-5-6: That a posterior people would never be in
+     a condition to establish industries of their own, where full
+     freedom of trade prevails, I do not by any means assert.
+     Compare the list of industries which attained to so
+     flourishing a condition without the aid of a protective
+     tariff, that they were able to supply foreign markets, in
+     _Rau_, Lehrbuch, II, Sec. 206, a. But when Switzerland is so
+     frequently cited as an illustration in this connection (_J.
+     Bowring_, On the Commerce and Manufactures of Switzerland,
+     1836), people forget the many favorable circumstances of
+     another kind which cooperated here to elevate industry; a
+     neutrality of three hundred years, during the French
+     Huguenot War, the Thirty Years' War, the Wars of Louis XIV.,
+     and as a consequence of this, no military budgets, few taxes
+     and state debts, etc. In addition to this, at an earlier
+     period, the many mercenary troops, and afterwards the
+     foreign travelers.]
+
+     [Footnote A3-5-7: As free trade in Holland's best period was
+     more an international law than a politico-economical system,
+     so, afterwards, the Dutch protective system grew out of war
+     prohibitions; and, in times of peace, the newly established
+     industry was not abandoned. At last, in the time of its
+     decline, all industries, with a strange logic, sought
+     protection, even the most ancient one, the one whose growth
+     was the most natural, the fisheries. (_Laspeyres_, Gesch.
+     der volksw. Ansch., 134 ff., 146, 159.) The United States,
+     during the war of 1812, with England, doubled their
+     protective duties. (_A. Young_, Report on the Customs-tariff
+     Legislation of the U. S., 1874.)]
+
+     [Footnote A3-5-8: Hence, we should not judge the Russian and
+     the American systems of industrial protection, for instance,
+     by the same rule. In Russia, it may be necessary to
+     strengthen artificially the still weak bourgeoisie, and to
+     awaken numberless slumbering forces and opportunities by
+     encouragement of their use by state measures. Here, also,
+     the absolute ruler is called upon, and accustomed to educate
+     his people. In the United States, on the other hand, there
+     is no nobility; the whole nation belongs to the class of
+     burghers, and even the cultivators of the land are raisers
+     of corn, cattle traders, land speculators etc. Considering
+     the universal activity and laborious energy of the people,
+     it is to be expected that every really profitable
+     opportunity will be turned to account in such a country,
+     without any suggestion or assistance from the state. Here,
+     therefore, _A. Walker's_ saying is true: America should
+     produce no iron, not because it does not know how, because
+     it has not sufficient capital, because the nature of the
+     country is not adapted to it, or because it has no natural
+     protection, but "because we can do better." (Sc. of W., 94
+     seq.) Since a democracy cannot, properly speaking, educate
+     the people, the protective duties of the United States are,
+     for the most part, only attempts by one part of the people,
+     who claim to be the whole, to prey upon the other parts.]
+
+     [Footnote A3-5-9: If we suppose three countries, each in the
+     form of a square: A = 1 sq. m., B = 100 sq. m., C = 10,000
+     sq. m.; there is in A for every mile of boundary 1/4 sq. m.
+     of inland country; in B, 2-1/2 in C, 25.]
+
+     [Footnote A3-5-10: Towards the close of the middle ages, the
+     vigorous commercial policy of Venice, for instance, towards
+     Greece, or the Mohammedan power, was thwarted by other
+     Italian cities, Genoa, Pisa, and later, by Florence
+     especially.]
+
+     [Footnote A3-5-11: Why most of the reasons above advanced do
+     not apply to a corresponding "protection" of agriculture by
+     duties on corn, see _Roscher_, Nationaloekonomik des
+     Ackerbaues, Sec. 159 ff.]
+
+
+SECTION VI.
+
+WHY THE PROTECTIVE SYSTEM WAS ADOPTED.
+
+This explains why so many nations in the periods of transition between
+their medieval age and their higher stages of civilization, adopted the
+industrial protective system.[A3-6-1] [A3-6-2] [A3-6-3] [A3-6-4] [A3-6-5]
+[A3-6-6]
+
+     [Footnote A3-6-1: The fact that among the ancients there was
+     so little thought bestowed on the protection of industry is
+     related to the comparative insignificance of their industry.
+     Compare _Roscher_, Ansichten der Volkswirthschaft, 3 ed.,
+     1878, vol. 1, p. 23 ff. It occasionally happened in the east
+     that workers in metal, especially the makers of metallic
+     weapons, were dragged out of the country. I _Sam._, 13, 19;
+     II _Kings_, 24, 14 ff.; _Jerem._, 24, 1, 29, 2. Among the
+     Jews, certain costly products were subjected to export
+     prohibitions for fear that the heathen might use them for
+     purposes of sacrifice. (_Mischna_, De Cultu peregr., Sec. 6.)
+     Persian law, that the king should consume only home
+     products: _Athen._, V, p. 372; XIV, p. c. 62. The Athenians
+     went farthest in reducing such provisions to a system. Solon
+     had strictly prohibited the exportation of all raw material
+     save oil (_Plutarch_, Sol., 24), and a complaint was allowed
+     against any one who scoffed at a citizen because of the
+     industry he carried on in the market. (_Demosth._, adv.
+     Eubul., p. 1308.) The exportation of corn was always
+     prohibited; also that of the principal materials used in
+     ship-building. In war, prohibitions of the exportation of
+     weapons; importation from enemy countries also prohibited.
+     No Athenian was permitted to loan money on ships which did
+     not bring a return cargo to Athens (_Demosth._ adv. Lacrit.,
+     p. 941), nor carry wheat to any place but Athens. (_Boeckh._,
+     Staatsh. der Ath., I, 73 ff.) In Argos and AEgina, the
+     importation of Athenian clay commodities and articles of
+     adornment, prohibited. (_Herodot._, V, 88; Athen., IV, 13;
+     XI, 60.)
+
+     The Athenians imposed a duty of two per cent. both on
+     imports and exports. Similarly, in Rome, where the higher
+     duties imposed on many articles of luxury served an
+     ethico-political purpose. We have, besides, accounts of
+     prohibitions of the exportation of money: _Cicero_, pro
+     Flacco, 28 (L., 2, Cod. Just., IV, 63). Plato's advice to
+     prohibit the importation of luxuries and the exportation of
+     the means of subsistence (_De Legg._) on ethico-political
+     considerations; and the Byzantine prohibition of the
+     exportation of certain articles of display from court
+     vanity. (Porph. Decaerim, p. 271 ff. Reiske.)]
+
+     [Footnote A3-6-2: In Italy's best period, the protective
+     system bears a specifically municipal complexion; in
+     democracies, a guild-complexion; the former especially
+     because of the many differential duties in favor of the
+     capital.
+
+     A very highly-developed protective system in Florence. The
+     exportation of the means of subsistence forbidden (Della
+     Decima, II, 13), and so likewise the importation of finished
+     cloths. (Stat Flor., 1415, V, p. 3; Rubr., 32, 39, 41, 43,
+     45.) In the streets devoted to the woolen industries, it was
+     not permitted to give the manufacturers notice to quit their
+     dwellings, nor to increase their rent, unless the
+     connoisseurs in the industry had admitted a higher rate of
+     profit. (Decima, II, 88.) In order to promote the silk
+     industry, the importation of silk-worms and of the mulberry
+     leaf was freed from the payment of duties in 1423, the
+     exportation of raw silk, cocoons and of the mulberry leaf
+     forbidden in 1443; and in 1440, every countryman was
+     commanded to plant mulberry trees. (Decima, II, 115.) When
+     Pisa was subdued, the Florentines reserved to themselves all
+     the wholesale trade, and prohibited there all silk and
+     woolen industries. (_Sismondi_, Gesch. der italienischen
+     Republic, XII, 171.) It was a principle followed by Milan in
+     its best period, to exempt manufacturers from taxation.
+     Yearly subsidies, accorded about 1442, to Florentine
+     silk-manufacturers, who immigrated; in 1493, a species of
+     _expropriation_, in case of houses which a neighbor needed
+     for manufacturing purposes. (_Verri_, Mem. Storiche, p. 62.)
+     Bolognese prohibition of the exportation of manuscripts,
+     because they wanted to monopolize science. (_Cibrario_, E.
+     polit. del. medio. Evo., III, 166.) Even in the seventeenth
+     century, a city like Urbino forbade the exportation of
+     cattle, wheat, wood, wool, skins, coal, as well as the
+     importation of cloth, with the exception of the very
+     costliest kinds. (Constitut. Due. Urbin., I, p. 388 ff., 422
+     ff.)]
+
+     [Footnote A3-6-3: In England, since the fourteenth century,
+     all genuinely national and popular kings always bore it in
+     mind both to secure emancipation from the Hanseates, to
+     invite foreigners skilled in industry to the country (the
+     Flemings since 1331, although the English people disliked to
+     see them come; _Rymer_, Foedd., IV, 496) and to adopt
+     protective measures, especially when they had reason to rely
+     on the bourgeoisie. (_Pauli_, Gesch. von England, V, 372.)
+     The precursors of the navigation act, 1381, 1390, 1440.
+     (_Anderson_, Origin of Commerce.) The prohibition of
+     exporting raw wool (1337, II Edw. III., c. 1 ff.) lasted
+     only one year. Wool remained a long time still so much of a
+     chief staple commodity that in 1354, for instance, L277,000
+     worth were exported; of all other commodities taken
+     together, only L16,400. (_Anderson._) On the other hand, the
+     prohibition to import foreign stuffs (1337), for instance,
+     was repeated in 1399, and the prohibition to export woolen
+     yarn and unfulled cloths in 1376, 1467, 1488. The statutes
+     of employment operated very generally. The statutes provided
+     that foreign merchants should employ the English money they
+     received only to purchase English commodities, and their
+     hosts, with whom they were obliged to live, had to become
+     security therefor. Thus, in 1390, 4 Henry IV., c. 15, and 15
+     Henry IV., c. 9; 18 Henry VI., c. 4, 1477. Prohibitions of
+     the exportation of money, 1335, 1344, 1381. Even in the case
+     of payment by the bishops to the pope, the exportation of
+     money was forbidden in 1391, 1406, 1414. Henry VIII. (3
+     Henry VIII., c. 1) threatened the exportation of money with
+     the penalty of double payment. Even in 1455, the importation
+     of all finished silk wares was prohibited for five years.
+     See a long list of similar prohibitions in _Anderson_. The
+     prohibitions relating to the exporting of raw materials, and
+     especially wool, were exceedingly strict in Elizabeth's
+     time, and stricter yet in the seventeenth century. The
+     penalty of death was attached to their violation, and
+     producers subjected to the most burthensome control.
+     Moderated especially by 8 Geo. I., c. 15. In the eighteenth
+     century we again find a series of import-premiums for raw
+     material from the English colonies. Compare _Adam Smith_,
+     IV, ch. 8.]
+
+     [Footnote A3-6-4: _Sismondi_, Histoire des Francais, XIX,
+     126, considers as the beginning of the French industrial
+     protective system, the edict of 1572, by which, with a view
+     of promoting the woolen, hemp and linen manufactures, the
+     exportation of the raw material and the importation of the
+     finished commodities are prohibited. (_Isambert_, Recueil,
+     XIV, p. 241.) Yet even Philip IV., in 1302, had prohibited
+     the exportation of the precious metals, of corn, wine and
+     other means of subsistence. (Ordonn., I, 351, 372.) About
+     1332, the decision of the question whether the exportation
+     of wool also should be forbidden was made to depend on who
+     offered the most, the raw-producers or those engaged in
+     industry. (_Sismondi_, X, 67 seq.) The third estate not
+     unfrequently asked for protective measures from the
+     parliaments: thus, in 1484, a prohibition against the
+     importation of cloth and silk stuffs, and against the
+     exportation of money (_Sismondi_, XIV, 673), claims which
+     went much further in 1614, when freedom of trade, reform of
+     the guilds, etc., were desired. Opposition of Sully to the
+     industrial-political measures of Henry IV., whose
+     prohibition of foreign and gold stuffs lasted scarcely one
+     year. (_Forbonnais_, Finances de Fr., c. 44.) The edict of
+     1664, which, for the first time, created a boundary
+     tariff-system for the greater part of France, with the
+     removal of numerous export and import duties of the several
+     provinces, and the abolition even of the duty-liberties of
+     the King's court, marks an epoch. The introduction in which
+     Colbert lets the King speak of his services to the
+     taxation-system, the marine, colonies, etc., in which he
+     describes the chaos of those earlier duties, and
+     demonstrates their desirability of doing away with them, is
+     very interesting. Colbert, inconsistently enough, allowed a
+     number of export duties for industrial products to remain,
+     that he might not alienate any domanial rights.
+     (_Forbonnais_, I, 352.) The tariff, then very moderate, was,
+     in 1677, doubled in part, and even trebled, which provoked
+     retaliation, and led to the war of 1672. Hence, in 1678, the
+     tariff of 1664 was, for the most part, restored. Colbert
+     entirely prohibited these commodities, which were still
+     imported, spite of the tariff: thus, Venetian mirrors and
+     laces in 1669 and 1671. Among his characteristic measures
+     are the export-premiums for salt-meats which went to the
+     colonies in order to draw this business away from Holland to
+     France. (_Forbonnais_, I, 465.) He caused the transit
+     between Portugal and Flanders to be made through France by
+     providing that it should be carried on by means of royal
+     ships at any price. (_Forbonnais_, I, 438.) Compare
+     _Clement_, Histoire de la vie et de l'Administration de C.
+     (1846). _Jonbleau_, Etudes sur C. ou Exposition du Systeme
+     d'Economie Politique suivi de 1661 a 1683 (II, 1856).
+     Lettres, Instructions et Memoires de C. publies par Clement
+     (1861 ff.).]
+
+     [Footnote A3-6-5: In Germany, the tariff projects of the
+     empire of 1522, contemplated no protection, inasmuch as
+     imports and exports were equally taxed, but the importation
+     of the most necessary means of subsistence was left free.
+     Prohibition of the exportation of the precious metals in
+     1524; of the exportation of raw wool _mit grossen Haufen_
+     (R. P. O., of 1548, art. 21; 1566, and in the R. P. O. of
+     1577, limited to the pleasure of the several districts).
+     Hence, in Brandenburg, 1572 and 1578, the Saxons,
+     Pommeranians and Mecklenburghers were prohibited to export
+     wool and to import cloth, in retaliation. Individual states
+     had much earlier adopted protective measures: Goettingen, in
+     1430, prohibited the exportation of yarn, and in 1438, the
+     wearing of foreign woolen stuffs. (_Havemann_, Gesch. von
+     Braunschweig und Luneburg, I, 780 seq.) Hanseatic politics
+     recall in many respects the Venetian. After 1426, the sale
+     of Prussian ships to non-Hanseates was made as difficult as
+     possible; and in 1433, the importation of Spanish wool was
+     prohibited in order to compel the payment of debts by Spain.
+     (_Hirsch_, Gesch. des Danziger, H. 87, 268.) Prohibition of
+     the exportation of the precious metals to Russia at the end
+     of the thirteenth century. _Sartorius_, II, 444, 453, III,
+     191. The elector, Augustus of Saxony, forbade the
+     exportation of corn, wool, hemp and flax (Cod. Aug. I.,
+     1414). The Bavarian L. O., of 1553, prohibits generally the
+     sale of corn, cattle, malt, tallow, leather or other
+     _Plennwerthe_ to foreigners; which prohibition was, in 1557,
+     limited to cattle, malt, tallow, wool and yarn.
+
+     The protective system received its most important
+     development in Prussia. Prohibition by the margrave, about
+     the end of the thirteenth century, of the exportation of
+     woolen yarn. (_Stengel_, Pr. Gesch., I, 84.) In the
+     privilege accorded to the weavers of woolen wares, in 1414,
+     the importation of the less important cloths is forbidden
+     for two years. (_Droysen_, Preuss. Gesch. I, 323.) The
+     prohibition of the exportation of wool of 1582 assigns as a
+     reason of the prohibition, that the numerous leading weavers
+     should not be ruined for the sake of a few unmarried
+     journeymen and sellers. (_Mylius_, C. C. M., V, 2, 207.) In
+     the prohibitions of 1611 and 1629, the domains, the estates
+     of prelates and knights were exempted; similarly, in Saxony,
+     1613-1626; which is one of the many symptoms of the then
+     growing _Junkerthum_. The great elector, who attached, both
+     in war and peace, great value to the possession of coasts,
+     men-of-war and colonies, forbade, for instance, the
+     importation of copper and brass wares (1654), of glass
+     (1658), of steel and iron (1666), of tin (1687); farther,
+     the exportation of wool (1644), leather (1669), skins and
+     furs (1678), silver (1683), rags (1685). Home commodities
+     were, for the most part, stamped with the elector's arms,
+     and all which were not so stamped were prohibited. The
+     prohibition was generally preceded by a notice that the
+     elector had himself established or improved a manufactory,
+     or that the guilds (_Innungen_) had entered complaints
+     against foreign competition. Not till 1682 did the idea
+     occur to impose a moderate excise on the home product to be
+     favored, and a much higher duty on the foreign one; thus in
+     the case of sugar. (_Mylius_, IV, 3, 2, 16.) Frederick I.
+     continued this system especially for the forty-three
+     branches of industry hitherto unknown, and the introduction
+     of which was contemporaneous with the reception of the
+     Huguenots. (_Stengel_, 3, 48, 208.) Frederick William I., in
+     1719 and 1723, threatened the exportation of wool, under
+     certain circumstances, with death. (_Mylius_, V, 2, 4, 64,
+     80.) The severity with which he insisted that his officials
+     and officers should wear only home cloth is characteristic;
+     and the fact that in 1719 he threatened tailors who worked
+     foreign cloth, with heavy money fines and the loss of their
+     guild-rights. At the same time all workers in wool were
+     freed from military duty, and capitalists who had loaned
+     money to wool manufacturers were given a preference (1729).
+     Frederick the Great, who continued nearly all this,
+     prohibited the exportation of Silesian yarn, with the
+     exception of the very coarsest and finest, as well as of
+     that which had been bleached. Its exportation was allowed to
+     Bohemia only, because from here the linen went back again to
+     Silesia to be bleached and sold there. (_Mirabeau_, De la
+     Monarchie Pruss., II, 54.)]
+
+     [Footnote A3-6-6: Important beginnings of a protective
+     system in Sweden, under Gustavus Wasa, and again under
+     Charles IX., the violent opponent of the supremacy of the
+     nobility (_Geijer_, Schwed. Gesch. II, 118 ff., 346); while
+     Christian II., of Denmark, failed in all such endeavors. The
+     founder of the Russian industrial protection was Peter the
+     Great, who was in complete accordance with the native
+     theorist, _I. Possoschkow_: Compare _Brueckner_, in the
+     Baltische Monatschrift, Bd. VI (1862), and VI (1863). Spain
+     first adopted a real protective system under the Bourbons.
+     The export prohibitions issued mostly at the request of the
+     cortes between 1550 and 1560 (_Ranke_, Fuersten und Voelker,
+     I, 400 ff.) must be considered as a remnant of the medieval
+     scarcity-policy, induced principally by a misunderstood
+     depreciation of the precious metals.]
+
+
+SECTION VII.
+
+HOW LONG IS PROTECTION JUSTIFIABLE?
+
+All rational education keeps in view as its object, the subsequent
+independence of the pupil. If it desired to continue its guardianship,
+the payment of fees, etc., until an advanced age, it would thereby
+demonstrate either the pupil's want of capacity or the absurdity of its
+methods. The industrial protective system also can be justified as an
+educational measure only on the assumption that it may be gradually
+dispensed with; that is, that, by its means, there may be a prospect of
+attaining to freedom of trade.[A3-7-1] In the case of all highly
+civilized nations, the presumption is in favor of freedom of trade, both
+at home and abroad, and in such nations, the desire for a protective
+system must be looked upon as a symptom of disease.[A3-7-2] [A3-7-3] It
+is true, that recently the inferiority of young countries, even when
+inhabited by a very active and highly educated people, is greatly
+enhanced by the improvement of the means of communication. But this is
+richly compensated for by the simultaneous instinct towards emigration,
+both of capital and workmen from over-full, highly industrial countries;
+whereas, the prohibitions by the state, that extreme of exportation
+embargoes, formerly so frequently resorted to, it is no longer possible
+to carry out.[A3-7-4] [A3-7-5] Now the young country has the advantage of
+being able immediately to use the newest processes of labor, etc.,
+without being hindered by the existence there of earlier imperfect
+apparatus. It is certain that international freedom of trade must be of
+advantage to a people's nationality the moment they have attained to the
+maturity of manhood, for the reason that they are thereby forced to make
+the most of that which is peculiar to them. Care must be taken not to
+confound many-sidedness with all-sidedness.[A3-7-6] The best "protection
+of national labor" might consist in this, that all products should be
+really individually characteristic (artistic), all individuals really
+national, and national also in their tastes as consumers. This ideal has
+been pretty closely approximated to by the French in respect to
+fashionable commodities, so that they will hardly purchase such from
+abroad, even without a protective tariff; and the cultured of most
+nations in respect to works of art. Here, too, it is worth considering,
+that even the most national of poets, when they are great enough to rise
+to the height of the universally human, possess the greatest
+universality.[A3-7-7]
+
+     [Footnote A3-7-1: _Colbert_ advised the companies in Lyons
+     to consider the privileges granted them only as crutches, by
+     means of which they might learn to walk the soonest
+     possible, it being the intention afterwards to do away with
+     them. (Journ. des Econom., Mai, 1854, p. 277.) Thiers said,
+     in the chamber of deputies, in 1834: _Employe comme
+     represailles, le tarif est funeste; Comme faveur, il est
+     abusif; Comme encouragement a une industrie exotique, qui
+     n'est pas importable il est impuissant et inutile. Employe
+     pour proteger un produit, qui a chance de reussir, il est
+     bon; mais il est bon temporairement, il doit finer quand
+     l'education de l'industrie est finie, quand elle est
+     adulte._ _Schmitthenner_, Zwoelf Buecher vom Staate, I, 657
+     ff., admits that full freedom of trade between England and
+     Germany would be advantageous to the world in general; but
+     that England might here secure the entire gain even at the
+     cost of Germany, in part. _Schmitthenner's_ view is
+     distinguished from that of _List's_, against which
+     _Schmitthenner_ zealously seeks to maintain the priority of
+     his own (II, 365), disadvantageously enough, by this, that
+     it contains no pledge of subsequent freedom of trade.
+     _List_, on the contrary, considers universal freedom of
+     trade, not only as the ideal, but also as the object which
+     is to be striven for by temporary limitations on trade; an
+     object, indeed, attainable only where there are a great many
+     nations highly developed and in an equal degree, just as
+     perpetual peace supposes a plurality of states equal in
+     power. Ges. Schr., II, 35; III, 194. Compare, on this point,
+     _Hildebrand_, N. O. der Gegenwart und Zukunft, I, 87. That
+     _Carey_ advocates a perpetual protective tariff is connected
+     with his absolute inability to conceive the Malthusian law
+     of population. (_Held_, Carey's Socialwissenschaft und das
+     Merkantilsystem, 1866, p. 166.)
+
+     Thus, for instance, the prohibition of foreign cloths in
+     Florence begins in 1393, that is, at a time when the
+     protected industry had long been developed, so that its
+     products were exported on a great scale, but when it began
+     to fear the young, vigorous, competition of the Flemings.]
+
+     [Footnote A3-7-2: How frequently it happened in the
+     conquests of the French revolution or of Napoleon, or when
+     the Zollverein was extended, that two territories, now
+     united to each other, feared an outflanking of their
+     industries, each by the other, whose competition was
+     formerly excluded; and that, afterwards, the abolition of
+     the barriers to trade worked advantageously to both parties!
+     (_Dunoyer_, Liberte du Travail, VII, ch. 3.) The Belgian
+     manufacture of (coarse) porcelain flourished under Napoleon,
+     spite of the competition of Sevres. It declined after the
+     separation from France, notwithstanding protective duties of
+     20 per cent. (_Briavoinne_, Industrie Belge, II, 483.) The
+     French cotton manufacturers feared, in 1791, that the
+     incorporation of Muelhausen would necessarily produce their
+     downfall.]
+
+     [Footnote A3-7-3: In Venice, the relations of a workman who
+     had emigrated and refused to return home were imprisoned. If
+     this was of no avail, the emigrant was to be put to death.
+     (_Daru_, Hist. de V., III, 90.) It is said that this was
+     still the practice in 1754. (Acad. des Sc. mor. et polit.,
+     1866, I, 132.) Florence, in 1419, threatened its subjects
+     who carried on the brocade or silk industry, in foreign
+     countries, with death. Similarly, when the Nuernberg
+     Rothgiessers were prohibited, under pain of the house of
+     correction, showing their mills to a stranger. (_Roth_,
+     Gesch. des N. Handles, III, 176.) In Belgium, enticing
+     manufacturers of bone lace to emigrate was made punishable.
+     Austrian prohibition for glass-makers, in 1752; for
+     scythe-makers, in 1781. Colbert also approved of the
+     imprisonment of manufacturers desirous to emigrate.
+     (Lettres, etc., II, 568 ff.) By 5 Geo. I., ch. 28, and 23
+     Geo. II., ch. 13, the soliciting of an artificer to emigrate
+     to foreign countries is punished by one year's imprisonment
+     and L500 fine; and even workmen who do not respond to a call
+     home within six months lose all their reachable property in
+     England, and their capacity to inherit there. Every emigrant
+     had to certify that he was no artificer. The only effect of
+     this law was that the emigration of artificers to the United
+     States was made by the way of Canada; the poorer ones, at
+     most, were kept back by the cost of this circuitous route.
+     Hence the law was repealed in 1825. Compare Edinb. Rev.,
+     XXXIX, p. 341 ff.]
+
+     [Footnote A3-7-4: The first English prohibition of the
+     exportation of machinery was made in reference to the Lee
+     stocking frame, in 1696, the second in 1750; whereupon
+     others followed very rapidly after 1774. As late as 1825,
+     prohibitions of the exportation of a large number of
+     machines and of parts of machines were still in force; but
+     the Board of Trade might dispense with them. Here it was
+     considered whether a greater disadvantage was caused to the
+     industries by permitting the exportation, or to the
+     manufacturers of the machines by prohibiting it. _Porter_,
+     Progress, I, 318 ff., recommends full freedom of exportation
+     especially for the reason that Englishmen can now procure
+     all new machines, and sell the old ones to foreign
+     countries. On the other hand, a French manufacturer
+     purchased old machines _parce que sous le systeme prohibitif
+     je gagnerai encore de l'argent avec ces metiers_. (_Rau_,
+     Lehrbuch, II, Sec. 209.) Similar cases in the United States.
+     _Cairnes_, Principles, p. 485.]
+
+     [Footnote A3-7-5: _Bandrillart_, Manuel, p. 299. Every
+     nation needs, in order to become fully mature, an industry
+     of some magnitude. But it may just as well be the silk
+     industry as the cotton which shall lead to this maturity;
+     and when the nation has much greater natural capacity for
+     the former than for the latter, it would do well to reach
+     its object by the shortest course.]
+
+     [Footnote A3-7-6: _Riehl_, die deutsche Arbeit, p. 102 ff.,
+     107. Shakespeare, the most English of Englishmen, and yet
+     the most universal of poets! During the last centuries of
+     the middle ages most nations had come to have national and
+     even local costumes which were in strong contrast with the
+     universality of fashions during the age of chivalry. This
+     must have greatly contributed to the advancement of
+     industry, even before the introduction of the state
+     protective system.]
+
+     [Footnote A3-7-7: How much more convenient it is for the
+     statesman, when he does not need to give any thought to the
+     education of industry, is shown, especially by the great
+     difficulty of striking precisely the proper height of a
+     protective tariff. If too low, it fails of its object; and
+     so, likewise, if too high; because then, in a very
+     unpedagogical way, it lulls one into a lazy security. And
+     how impossible it is to make the tariff vary with every
+     variation in the cost of production, in price, etc.; as List
+     desired it should, not, however, without a good deal of
+     variation in his own views. (_Roscher_, Gesch. der N. O.,
+     II, 989 seq.) How greatly would not List have been obliged
+     to limit his assumptions, if he had lived to see the
+     universal exposition of 1862, at which English connoisseurs
+     expressed their pleasure that England had not remained
+     behind France and Germany in locomotive building? (Ausland,
+     19 Oct., 1862.) Hence _Schaeffle_ opposes all protective
+     duties as an educational measure, because the "protected"
+     classes, by means of diets (_Landtage_), newspapers, etc. so
+     greatly influence legislation; that is, the educator is
+     influenced by the pupil! (System, 409 ff.) The usual
+     calculation of the cost for home undertakers (_Unternehmer_)
+     can always only strike the average, and hence it is too high
+     for some and too low for others. (_Rau_, Lehrbuch, II, Sec.
+     214.) It frequently occurs that large manufacturers already
+     existing desire a low protective tariff to facilitate their
+     competition with foreign countries, possible even without
+     such tariff, but not high enough to encourage others to
+     compete with them at home.]
+
+
+SECTION VIII.
+
+INDUSTRIAL-PROTECTIVE POLICY IN PARTICULAR.
+
+If it be once established generally that an industry is to be
+artificially promoted, and if there be question only of a choice between
+the different measures to be adopted to thus promote it,
+moderate[A3-8-1] import duties are not only the most equable, least
+subject to abuse, but also attended by the greatest number of secondary
+advantages. Here the sacrifice is imposed on all the consumers of the
+"protected" commodity, that is, on the entire people, to the extent that
+they come in contact with the commodity in question. Export duties on
+raw materials, on the other hand, compel one single class of the people
+to make sacrifices in order to advance the favored industry.[A3-8-2]
+Export premiums for commodities on which labor has been expended are
+distinguished from import duties as the offensive from the defensive:
+the former promote the artificial trade, the trade which has gone beyond
+its natural basis, the latter curtail it.
+
+Premiums, advances without interest, gifts of machinery etc., to persons
+engaged in industry would operate very usefully under an omniscient
+government.[A3-8-3] But they generally fall to the lot not of the most
+skillful manufacturers, but of the most acceptable supplicants, who now
+are doubly dangerous to the former as competitors.[A3-8-4] The same is
+true to a still greater extent of monopolies granted to undertakings
+which it is intended to promote.[A3-8-5] They require, at least, to be
+vigilantly superintended in case of sale from one person to another;
+otherwise the individual to whom they were first granted is very apt to
+withdraw with the capitalized value of the privilege accorded, and his
+successors, loaded with a heavy debt in the nature of a mortgage, to
+derive no advantage from it.[A3-8-6]
+
+Further, import duties, besides the fiscal advantage which they afford,
+have the police advantage that they may, like quarantine provisions,
+prevent somewhat the inroads of many economic diseases: thus, for
+instance, gluts of the market, and still more, the severe chronic
+disease of ruinously low wages.[A3-8-7] But only very moderate hopes
+from protective duties should be entertained in all such respects as
+these.[A3-8-8]
+
+Prohibition proper operates, as a rule, very disastrously.[A3-8-9] It
+spoils those engaged in industry by a feeling of too great security
+(mortals' chiefest enemy: Shakespeare). It may even lead to complete
+monopoly, when the industry requires very large means and the country is
+small. The inducement to smuggling is peculiarly great here. But even
+duties, so high that they far exceed the insurance premium of smuggling,
+can be of very little advantage either to industry or to the exchequer.
+They can only promote the smuggling trade. However, the repeal of an
+import prohibition or the abolition of a tariff approaching to a
+prohibition should be announced long enough in advance to enable the
+capital invested in the protected industry to be withdrawn without too
+heavy a loss.
+
+     [Footnote A3-8-1: In general, _Maeser_ was in favor of
+     _Colbert_, and opposed to _Mirabeau_. (P. Ph. II, 26.) He
+     ridicules the prohibitions of the exportation of raw
+     material by saying that not only flax-seed, flax-yarn, but
+     also the linen, must remain in the country. As Raphael Mengs
+     once ennobled four ells of linen to a value of 10,000
+     ducats, a hundred Mengs should be sent for, to the end that
+     all the linen should be exported painted. (v. 25.)]
+
+     [Footnote A3-8-2: _Rau_, Lehrbuch, II, Sec. 214, would prefer
+     to tolerate state premiums (politically so dangerous),
+     rather than protective duties, because, in the case of the
+     former, the magnitude of the assumed sacrifice may be
+     exactly estimated in advance. Similarly, _Bastiat_,
+     Sophismes, ch. 5.]
+
+     [Footnote A3-8-3: Many striking examples in _List's_
+     Zollvereinsblatt, 1843, No. 47.]
+
+     [Footnote A3-8-4: Under _Colbert_, the granting of a
+     monopoly had frequently no effect but to ruin an already
+     existing rural industry in the interest of a city
+     manufactory. Thus, in the case of lace, in Bourges and
+     Alencon, and soap in the south, etc. The upshot of the
+     matter in some places was simply that the carriers on of
+     industry on a small scale were allowed to carry on their
+     industries in consideration of a payment made to the owners
+     of the privilege. (Journ. des Econ., 1857, II, 290.) The
+     King of Denmark bought back, in 1756, at a high price,
+     industrial privileges which his predecessors had granted
+     gratis. (_Justi_, Polizeiwissensch., Sec. 444.) The Colbert
+     monopoly of the Hollander v. Robais (1665), who was the
+     first to manufacture fine cloths in France, was not
+     abolished until 1767. (Encycl. Mech. Arts et Manuf., II,
+     345.)]
+
+     [Footnote A3-8-5: Thus, for instance, in 1863, the
+     apothecary shops of the governmental district of Breslau had
+     a value of 2,791,227 thalers, of which the land and
+     inventories of stock were only 29 per cent. The concessions
+     represented 71 per cent. The sick, in the entire state of
+     Prussia, were obliged to contribute 1,780,000 thalers a year
+     to compensate these monopolists. Compare _Brefeld_, Die
+     Apotheken, Schutz oder Freiheit? (1863).]
+
+     [Footnote A3-8-6: _Hermann_, in his review of Doenniges'
+     System des freien Handels und der Schuetzzoelle (Muench. G. A.
+     Sept. und Octbr., 1847) calls attention to the point that a
+     decrease of the cost of production, by merely lowering
+     wages, is no gain to the national resources, but only an
+     altered distribution of them, for the most part a very
+     unfavorable one. But when a nation is advancing on this
+     road, it may strengthen its exportation by such means, as it
+     might granting export premiums at the expense of the
+     workmen. This would lead, on the supposition of entire
+     freedom of trade, to a corresponding depression of the lower
+     classes in other countries; and against such contagion a
+     protective tariff may operate in a manner similar to the
+     quarantine. This is much exaggerated by _Colton_, Public
+     Economy of the United States (1849), p. 65, 178. America
+     needs a protective tariff more than any other nation,
+     because of its dear workmen and capital. In Europe, the
+     upper classes rob labor of its product, while in America,
+     labor itself enjoys its products. Free trade would lower
+     America to the level of Europe.]
+
+     [Footnote A3-8-7: Severe crisis in the woolen industries of
+     America in 1874 ff., spite of an enormously high protective
+     tariff. The financial utility of a protective tariff can be
+     scarcely great, because the intention of the tariff to
+     permit as little as possible to be imported, and of the tax
+     to levy as much as possible, are irreconcilable.]
+
+     [Footnote A3-8-8: Frederick II., in 1766, forbade the
+     importation of 490 different commodities which, up to that
+     time, had only paid high duties. (_Mirabeau_, Monarchie,
+     Pr., II, 168.) In 1835, France still had 58 import and 25
+     export prohibitions.
+
+     They might, by way of exception, become necessary, in case a
+     foreign state should desire to make our protective duties
+     illusory by export premiums. But the exportation of Prussian
+     cotton stuffs, for instance, has increased, with a moderate
+     tariff, much more than the Austrian, with full prohibition.
+     The English silk manufactures were, so long as the
+     prohibition continued, inferior to the French, even in
+     respect to the machinery system. (_McCulloch_, Statist., I,
+     681.)]
+
+     [Footnote A3-8-9: In the case of circulating capital this is
+     generally done rapidly. The machines would have worn out,
+     and care is taken not to renew them. Buildings also can, for
+     the most part, serve other purposes. The most difficult
+     thing of all is for the masses of men, gathered together at
+     the principal seats of industry, artificially created, to
+     distribute themselves. Between the two rules: "No leap, but
+     gradual transition," and "cut the dog's tail off at once,
+     not piecemeal," the right mean is struck in the abolition of
+     a prohibitive protection, when, what it is intended to do,
+     is announced long in advance without maintaining vain hopes,
+     and a long space of time is left to enable people to make
+     their arrangements accordingly. This plan was followed in a
+     model manner in reference to the English silk prohibition,
+     under Huskisson. It was announced as early as 1824 that
+     protective duties of 30 per cent. would on the 5th of July,
+     1826, take the place of the prohibition. The duty on raw
+     silk was immediately reduced from 4 sh. to 3d. per pound,
+     and after a time, even to 1d., which so increased the demand
+     that the number of spindles rapidly increased from 780,000
+     to 1,180,000. During the 10 years from 1824, the importation
+     of raw and twisted silk amounted to about 1,941,000 pounds,
+     and in the 10 years after, to 4,164,000 pounds. The English
+     exports of silk wares had before 1824 a value of L350,000 to
+     L380,000; in 1830, of over L521,000; in 1854, of almost
+     L1,700,000; in 1863, of L3,147,000. Compare _Porter_,
+     Progress, I, 255 ff. On the other hand, Austria was
+     over-hasty when it went over from the prohibition of foreign
+     silk stuffs to duties of 180 florins per cwt. (Oest.
+     Weltausstellungsbericht von 1867, IV, 140.)]
+
+
+SECTION IX.
+
+WHAT INDUSTRIES ONLY SHOULD BE FAVORED.
+
+That as a rule only such industries should be favored which, by reason
+of the natural capacities of the country and of the people, have a good
+prospect of being able soon to dispense with the favors accorded, would
+be self-evident were it not for the fact that it has been ignored a
+thousand times in practice.[A3-9-1] It is especially necessary to take
+the natural station (_Standort_)[A3-9-2] as well as the natural
+succession of the different branches of industry into consideration.
+Half manufactured articles of foreign raw material should not be
+protected until the entire manufactured article has completely outgrown
+protection; which condition manifests itself most clearly by a strong,
+independent exportation of the article.[A3-9-3] The celebrated tariff
+controversy between the cotton spinners and the weavers in the
+Zollverein was probably without any conscious plan, but certainly to the
+well-being of German industry, settled essentially in accordance with
+these principles. In such struggles of the different stages of a branch
+of production with one another, it is necessary not only mechanically to
+weigh the number of workmen, the amount of capital, etc., on both sides,
+but also organically the capacity for development and the influence of
+both sides on the entire national life.[A3-9-4] Half-manufactured
+articles of a very superior quality should not be kept away, since by
+promoting commodities of the first quality they have an educational
+influence on the whole industry. Thus, in the case of the duties on
+iron, it should not be forgotten, that they enhance the price of all
+instruments of industry.[A3-9-5] Just as objectionable are protective
+duties for machines or for intellectual elements of training.[A3-9-6]
+
+     [Footnote A3-9-1: _Torrens_ calls an industry which can, in
+     the long run, bear no competition: "A parasitical formation,
+     wanting the vital energies while permitted to remain, and
+     yet requiring for its removal a painful operation." (Budget,
+     p. 49.) Especially frequent in the case of
+     luxury--industries in which the court was interested. The
+     oysters which were sent for to Venice under Leopold I., in
+     order to stock the artificial beds in the garden of the
+     president of the Exchequer reached Vienna, dead. (_Mailath_,
+     Gesch., IV, 384.) As to how Elizabeth, and Catharine II. in
+     Russia, desired to compel the cultivation of silk, and
+     caused the peasantry to be levied like recruits for that
+     purpose; as to how the latter petitioned against it in a
+     thousand ways, and endeavored to destroy the silk worms,
+     mulberry trees, etc., see _Pallas_, Reise durch das suedliche
+     Russland, I, 154 ff. Frederick II.'s silk-protection is
+     characterized mainly by the order for church-inspectors to
+     keep tables (_Tabellen_) concerning it, and to look after
+     clergymen's and teachers' knowledge of the cultivation of
+     silk. Tragico-comic endeavors of the Shah Nasreddin to
+     establish manufactories in Persia: _Pollak_, Persien, II,
+     138 ff. One of the principal effects of the Mexican
+     protective system, since 1827, was the establishing of
+     manufactories on the coast only to cover up smuggling.
+     (_Wappaeus_, Mexiko, 83 ff.)]
+
+     [Footnote A3-9-2: When Holland stunted its bleach-yards by
+     high duties on linen, an industry in which it must always
+     remain behind many other nations, was favored at the expense
+     of another for which it possesses incomparable advantages.]
+
+     [Footnote A3-9-3: Even before _Colbert's_ time, French
+     jewelry was prepared from Italian gold wire, and exported in
+     great quantities. The mere rumor that it was contemplated to
+     impose heavy duties on gold wire, provoked plans for the
+     removal of the industry from Geneva to Avignon.
+     (_Farbonnais_, F. de Fr., I, 275.) When France protects its
+     raw silk, it makes the purchase of raw material in Italy
+     cheaper to all its competitors.]
+
+     [Footnote A3-9-4: According to _L. Kuehne_ (Preuss.
+     Staatszeitung, 17 Decbr., 1842), the cotton yarn consumption
+     of Germany amounted to 561,000 cwt. per annum, of which the
+     home spin-houses yielded 194,000 cwt. Weaving employed
+     311,500 workmen with 32,250,000 thalers wages, spinning only
+     16,300 workmen with a little over 1,000,000 thalers wages.
+     Even if the entire yarn-want (_Garnbedarf_) were spun in the
+     interior, yet spinning would stand to weaving only as 1:5 in
+     the number of workmen, and as 1:8 in the amount of wages.
+     Hence the tariff of the Zollverein defended by Prussia,
+     placed the tariff on tissues (_Gewebe_) 25 times as high as
+     on yarn, while their prices stood to each other as 1:3-4.
+     _List_ (Zollvereinsblatt, 1844, No. 40 ff.) objected that
+     only by spinning industries of its own could Germany's
+     cotton-tissue industries become independent; since it was a
+     very different thing to procure the material to be worked
+     from the many mutually competing cotton countries, rather
+     than from an intermediate hand; and indeed, from the most
+     powerful industrial country of the world. (Compare, however,
+     _Faucher's_ Vierteljahrsschrift, 1863, Bd. I.) Besides,
+     there is the great importance of the spinning industries, in
+     order to come into immediate connection with America, the
+     most rapidly growing market, to influence Holland, and also
+     to advance navigation and the manufacture of machinery. In
+     opposition to _Kuehne's_ calculation, _List_ says: A man who
+     lost eyes, ears, fingers and toes, would undergo only a
+     small loss of weight.]
+
+     [Footnote A3-9-5: Special calculations on this matter in
+     _Junghanns_, Fortschritt des Zollvereins (1849), I, 179.]
+
+     [Footnote A3-9-6: Frederick II. threatened the prosecution
+     of one's studies at a foreign university with a lifelong
+     exclusion from all civil and ecclesiastical offices; and, in
+     the case of the nobility, even with the confiscation of
+     their property. (_Mylius_, C. C. M. _Contin_, IV, 191,
+     Noviem C. C., I, 97.)]
+
+
+
+
+INDEX TO NAMES OF AUTHORS
+
+CITED IN THE PRINCIPLES.
+
+[The references are to the sections.]
+
+
+A.
+
+Academie francaise, 42.
+
+Agricola, 116, 120.
+
+Ahrens, 16, 77.
+
+Algarotti, 49.
+
+Anacharsis, 116.
+
+Anaxagoras, 38.
+
+Anderson, A. (Origin of Commerce), 188.
+
+Anderson, J. (Nature of Corn Laws), 152, 154.
+
+Anonymous, authors of:
+
+  ---- Britannia languens, 123, 196.
+  ---- Discourse of Trade, Coyn and Paper-Credit, 48, 50, 90, 108, 123.
+  ---- England's great Happiness, 196.
+  ---- Interest of Money mistaken, 188.
+  ---- Paying old Debts without new Taxes, 49.
+  ---- Virginia's Verger, 9.
+  ---- (W. S.) Compendious or brief Examination of certain ordinary
+        Complaints, 137.
+
+Antisthenes, 225.
+
+Antoninus, 191.
+
+Arbuthnot, 135.
+
+Aretin, v., II, 118.
+
+Aristippos, 225.
+
+Aristophanes, 79, 202.
+
+Aristotle, 1, 2, 5, 9, 14, 36, 38, 43, 49, 57, 63, 69, 70, 75, 79, 81,
+100, 107, 116, 117, 190, 205, 250, 251, 253.
+
+Arnd, 20.
+
+Arnold, 184.
+
+Asgill, 49.
+
+Augustinis, de, 51.
+
+Auxiron, 154.
+
+
+B.
+
+Babbage, 57, 58, 106.
+
+Baboeuf, 79, 81.
+
+Bacon, 13, 21, 24, 50, 55, 98, 108, 114, 191, 204, 254.
+
+Bandini, 123, 188.
+
+Banfield, 115, 157, 205, 263.
+
+Bastiat, 2, 5, 9, 31, 35, 42, 54, 58, 81, 82, 84, 87, 97, 116, 117, 152,
+167, 185, 210, 238, 242, 243.
+
+Baudrillart, 21, 242.
+
+Baumstark, 20, 154.
+
+Bazard, 11, 53, 67, 84, 86, 90, 97, 205, 207.
+
+Beaumont, de, 250.
+
+Beccaria, 19, 49, 57, 79, 125, 126, 140, 256, 263.
+
+Becher, J. J., 98, 114, 214, 254.
+
+Beckmann, J., 225.
+
+Bentham, J., 12, 71, 193, 232, 250, 256.
+
+Berg, v., 76.
+
+Berkeley, 9, 47, 57, 95, 116, 123, 212, 214, 231, 254, 255.
+
+Bernhardi, v., 147, 154.
+
+Bernhardinus, 191.
+
+Bernoulli, 3, 246, 248.
+
+Besold, 137, 191.
+
+Bible, 11, 16, 36, 41, 63, 69, 81, 84, 190, 202, 204, 218, 225, 239,
+245, 255, 264.
+
+Biel, 22, 116, 120.
+
+Blackstone, 42, 86 87, 199.
+
+Blanc, L., 81, 82, 98, 167, 178.
+
+Blanqui, 169.
+
+Boeckh, 135, 137.
+
+Boden, 183.
+
+Bodin, J., 37, 137, 254.
+
+Bodz-Reymond, 97.
+
+Boisguillebert, 1, 9, 12, 49, 96, 97, 100, 111, 117, 123, 154, 214, 215.
+
+Booth, 243.
+
+Bornitz, 3, 114.
+
+Bossuet, 77, 191.
+
+Botero, G., 9, 210, 241, 242, 245.
+
+Boussingault, 32, 34.
+
+Boxhorn, 39, 94.
+
+Brentano, 166, 175, 176, 177.
+
+Bridge, 238.
+
+Brissot, 77.
+
+Broggia, 9, 116.
+
+Buat, 16.
+
+Buchanan, 152, 153, 154, 164.
+
+Buckle, 209, 263.
+
+Buelau, 17, 97.
+
+Buonarotti, 79.
+
+Buquoy, Count, 22, 34, 129, 147.
+
+Burke, 11, 220; II, 5, 106, 140, 155.
+
+Buesch, 2, 9, 42, 95, 96, 117, 123, 126, 170, 183, 263.
+
+
+C.
+
+Cabanis, 37.
+
+Cabet, 79, 82, 250.
+
+Caesar, Jul., 16.
+
+Calvin, 49, 79, 114, 191.
+
+Campanella, 79.
+
+Canard, 22, 42, 47, 95, 101, 106, 123, 152, 188, 195, 215.
+
+Cancrin, Count, 64, 98.
+
+Cantillon, 47, 49, 90, 98, 106, 123, 126, 128, 137, 144, 154, 161, 167,
+185, 193.
+
+Carey, 5, 42, 148, 154, 155, 157, 166, 172, 199, 214, 243, 253, 263.
+
+Carli, 137.
+
+Casper, 246.
+
+Cato, Cens., 43, 190, 222.
+
+Cazaux, 22, 127, 145.
+
+Celtes, 41.
+
+Cervantes, 55.
+
+Chadwick, 218, 248.
+
+Chalmers, Th., 216, 217, 242.
+
+Cherbuliez, 202.
+
+Chevalier, M., 11, 40, 66, 70, 89, 97, 116, 120, 121, 124, 128, 129,
+136, 137, 139, 142, 143, 173, 199, 216, 217, 220.
+
+Child, Sir J., 42, 97, 98, 114, 123, 154, 157, 188, 192, 193, 197, 199,
+241, 242, 254.
+
+Chrysippos, 250.
+
+Cibrario, 17, 137.
+
+Cicero, 9, 46, 49, 75, 100.
+
+Cieszkowsky, 89.
+
+Clemens, Rom., 81.
+
+Cleonard, 54.
+
+Cliquot de Blervache, 108.
+
+Cobden, R., 98.
+
+Coke, R., 196.
+
+Colbert, 232, 255.
+
+Colton, 12, 25, 42, 116, 201.
+
+Columella, 40, 59, 71.
+
+Comte, Ch., 37, 71.
+
+Condillac, 21, 49, 107, 129.
+
+Condorcet, 263.
+
+Considerant, 51, 88, 183.
+
+Constant, B., 168.
+
+Contzen, Ad., 49, 226.
+
+Cooper, Th., 12.
+
+Corpus Juris civilis, 69, 83, 117, 201.
+
+Corpus Juris canonici, 41.
+
+Corvaja, 82.
+
+Cournot, 22.
+
+Court, P. de la, 94, 97, 98, 108, 114, 185, 254.
+
+Culpeper, Sir Th., 154, 188, 192, 199.
+
+
+D.
+
+Dankwardt, 16, 56.
+
+Dante, 191, 250.
+
+Darjes, 19, 76, 96, 106, 192, 254.
+
+Darwin, 242.
+
+Davanzati, 116, 123.
+
+Davenant, 9, 10, 21, 97, 103, 116, 124, 157, 242, 254.
+
+Decker, Sir M., 10, 41.
+
+Defoe, D., 222.
+
+Demosthenes, 21, 42, 43, 89, 231.
+
+Diderot, 57.
+
+Dietzel, C., 42, 90.
+
+Diogenes, 225.
+
+Dithmar, 19.
+
+Dohm, 49, 263.
+
+Doubleday, 242.
+
+Drobisch, 13, 129.
+
+Droz, 46, 92, 214.
+
+Dufau, 18.
+
+Dumont, 225.
+
+Dunoyer, 16, 17, 21, 26, 38, 42, 50, 54, 111, 145, 178, 203, 216, 242.
+
+Dupont de Nemours, 5, 97, 108, 147.
+
+Duport, St. Clair, 139.
+
+Dutot, 96, 100, 116, 212.
+
+
+E.
+
+Eden, Sir F. M., 57, 140, 213.
+
+Edinburgh Review, 116, 154, 176, 242.
+
+Eiselen, 51, 95, 195.
+
+Enfantin, 250.
+
+Engel, 161, 162, 214, 240, 243, 246, 248.
+
+Epicharmos, 47.
+
+Erasmus, 41, 79, 191.
+
+Euler, 238.
+
+Euripides, 37, 226.
+
+Everett, 243.
+
+
+F.
+
+Fallati, 18, 21.
+
+Faucher, J., 1.
+
+Faucher, L., 178, 215.
+
+Faust, M., 137.
+
+Faxardo, Saavedra, 9, 254.
+
+Fenelon, 225.
+
+Ferguson, 11, 16, 21, 44, 50, 63, 115, 210, 217, 224, 225, 226, 255.
+
+Fichte, J. G., 12, 82, 97, 123, 129, 204, 250.
+
+Filangieri, 225, 254.
+
+Fix, 4.
+
+Fleetwood, 143.
+
+Forbonnais, 68, 97, 116, 123, 173, 190, 200, 214, 254, 255.
+
+Forster, 79.
+
+Fortrey, Sam, 196.
+
+Fourier, Ch., 51, 66, 81, 85, 97, 183, 207, 250.
+
+Fox, 77.
+
+Franklin, B., 12, 33, 41, 42, 49, 71, 89, 97, 98, 107, 116, 128, 173,
+178, 203, 218, 219, 225, 232, 241, 242, 255.
+
+Fregier, 223.
+
+Friedlaender, 4.
+
+Friedrich II. (Emperor), 49, 83.
+
+Friedrich, M., 16, 114, 244, 254.
+
+Fullarton, 123, 125.
+
+Fuoco, 11, 22, 121, 146, 154, 202.
+
+
+G.
+
+Galiani, 8, 9, 42, 47, 98, 100, 104, 116, 120, 126, 128, 129, 140, 142,
+167, 187, 197.
+
+Gallatin, 136.
+
+Ganilh, 12, 42, 51, 52, 55, 116, 123, 147, 180, 188, 196, 214, 216.
+
+Garcilasso, de la Vega, 9.
+
+Garnier, 16, 50, 137.
+
+Garve, 30, 50, 52, 99, 115, 173, 231.
+
+Gasparin, 161.
+
+Gavard, 17.
+
+Gee, 116.
+
+Geiler v. Kaisersberg, 39.
+
+Genovesi, 4, 16, 64, 97, 102, 123.
+
+Gerstner, 253.
+
+Gessler, 261.
+
+Gibbon, 234.
+
+Gioja, 2, 30, 42, 47, 51, 64, 191.
+
+Gobbi, 32.
+
+Godwin, 243, 250, 254.
+
+Goethe, 11, 25, 36.
+
+Goldsmith, 254.
+
+Gournay, 49, 108.
+
+Graham, 243.
+
+Graswinckel, 87.
+
+Gratian, 47.
+
+Graumann, 125.
+
+Graunt, 245.
+
+Gray, 243.
+
+Gregorius Tolosan, 48, 55.
+
+Grotius, H., 77, 87, 187, 191.
+
+Guerard, 143.
+
+Guenther, 194.
+
+
+H.
+
+Hackluyt, 9.
+
+Haller, K. L. v., 14, 256.
+
+Hamann, 117.
+
+Hamilton, 90, 152.
+
+Hanssen, 40, 126, 139, 140, 144.
+
+Harless, 81.
+
+Harrington, J., 98, 205, 253.
+
+Harris, 47, 57, 128, 180.
+
+Hegel, 3.
+
+Held, 146.
+
+Helferich, 86, 137.
+
+Helvetius, 11, 38, 231.
+
+Herakleides, 225.
+
+Herbart, 16, 22.
+
+Herbert, 101, 142.
+
+Herber, J. G. v., 265.
+
+Hermann, F. B. W., 1, 2, 3, 11, 17, 42, 43, 44, 45, 50, 51, 101, 103,
+106, 108, 110, 113, 115, 118, 129, 137, 142, 144, 145, 146, 147, 150,
+152, 153, 154, 166, 172, 180, 181, 183, 186, 196, 196a, 199, 204, 208,
+211, 212, 216, 219, 231, 246, 259.
+
+Herodotus, 37.
+
+Herrmann, E., 101, 207.
+
+Heuschling, 154.
+
+Hildebrand, B., 5, 13, 18, 79, 90, 146, 205.
+
+Hippokrates, 37.
+
+Hobbes, 42, 47, 50, 77, 107, 116, 118.
+
+Hoffmann, J. G., 97, 117, 119, 159, 205, 246, 249.
+
+Homer, 71, 250.
+
+Hood, 168.
+
+Hopkins, 159.
+
+Horn, 245, 247, 248, 254.
+
+Horneck, v. 19, 114, 116, 254.
+
+Howlett, 39.
+
+Hufeland, 2, 5, 12, 13, 46, 51, 59, 66, 87, 106, 107, 111, 118, 152,
+195, 221.
+
+Hugo, G., 24, 69, 81.
+
+Humboldt, A. v., 32, 36, 61, 98, 106, 136, 139, 214.
+
+Hume, D., 11, 36, 42, 47, 50, 71, 96, 98, 116, 117, 121, 123, 125, 126,
+137, 154, 185, 200, 214, 225, 242, 263, 264.
+
+Hutcheson, 5, 11.
+
+Hutton, U. v., 225.
+
+
+I.
+
+Iambulos, 79.
+
+Isokrates, 57, 231.
+
+Ivernois, Sir F. d', 239, 246.
+
+
+J.
+
+Jacob, W., 120, 135, 137.
+
+Jakob, H. L. v., 16, 49, 71, 106, 107, 127, 128, 147, 153, 195, 217,
+219.
+
+Jarke, 202.
+
+Jevons, 22, 129.
+
+Johnson, S., 93.
+
+Jones, R., 148, 154.
+
+Jselin, 67.
+
+Jung, 76, 156; II, 53, 101, 173.
+
+Justi, v., 9, 17, 116, 199, 237, 254.
+
+
+K.
+
+Kant, 11, 87.
+
+Kauffmann, 3, 9, 126.
+
+Kautz, 29.
+
+Kees, v. 194.
+
+King, Ch., 48.
+
+King, G., 103.
+
+King, Lord, 124.
+
+Knapp, 246.
+
+Knies, 4, 5, 6, 7, 11, 18, 28, 42, 89, 95, 107, 116, 117, 139, 169, 189,
+213, 265.
+
+Kosegarten, 117, 202.
+
+Kraus, 17, 128, 137, 197, 265.
+
+Krause, 170.
+
+Kroencke, 22, 147.
+
+Krug, L., 192, 254.
+
+Kudler, 49, 128.
+
+
+L.
+
+Lafitte, 202.
+
+Lang, 22.
+
+Laspeyres, 129.
+
+Lassalle, 45, 84, 163, 196a.
+
+Lau, 245.
+
+Lauderdale, Lord, 8, 9, 50, 51, 99, 103, 104, 106, 117, 128, 132, 147,
+200, 214, 217, 221, 231, 263.
+
+Lavergne, L. de, 139.
+
+Law, 42, 96, 101, 107, 115, 116, 117, 121, 123, 127, 254.
+
+Legoyt, 245.
+
+Leib, 48, 237b.
+
+Leibnitz, 13, 114, 140, 254.
+
+Leopoldt, II, 87, 145.
+
+Leplay, 65.
+
+Letronne, 137, 214.
+
+Libanios, 174.
+
+Liebig, J. v., 162.
+
+Linguet, 69, 174.
+
+List, Fr., 45, 46, 50, 64, 98, 154, 260.
+
+Liverpool, Lord, 118, 120, 142.
+
+Livy, 231.
+
+Locke, J., 5, 42, 47, 77, 100, 107, 116, 123, 129, 152, 154, 158, 188,
+191, 193, 194, 199, 254.
+
+Lotz, 5, 17, 20, 49, 50, 98, 99, 100, 115, 123, 128, 144, 166, 169, 195,
+202.
+
+Louis XIV., 221.
+
+Lowe, 129, 219.
+
+Lueder, 37, 50, 117.
+
+Luther, M., 41, 49, 57, 114, 128, 191, 254.
+
+
+M.
+
+Mably, 79, 81.
+
+Macculloch, 21, 40, 42, 43, 47, 50, 93, 107, 112, 113, 151, 164, 166,
+173, 188, 197, 212, 253, 264.
+
+Machiavelli, 21, 191, 238, 242, 244.
+
+Macleod, 89, 90, 107, 115, 123, 154.
+
+Macpherson, 143.
+
+Malthus, 3, 9, 33, 42, 43, 50, 55, 79, 80, 98, 100, 107, 111, 112, 128,
+129, 147, 152, 153, 157, 159, 163, 164, 166, 183, 185, 188, 205, 214,
+216, 217, 239, 241, 242, 243, 244, 247, 258, 263.
+
+Malthusians, 217, 254.
+
+Mandeville, 11, 57, 225.
+
+Mangoldt, v., 6, 16, 22, 30, 43, 51, 53, 59, 63, 71, 106, 129, 146, 149,
+153, 157, 167, 177, 181, 195, 205, 220.
+
+Mariana, 100, 114, 231.
+
+Marlo, K., 71, 79, 178, 207, 242, 250, 251, 258.
+
+Martineau, H., 176.
+
+Marx, K., 22, 42, 47, 107, 189.
+
+Masius, 237.
+
+Massie, 42.
+
+Melanchthon, 79, 100, 191.
+
+Melon, 42, 90, 91, 97, 123, 225, 254.
+
+Menander, 174.
+
+Mendelsohn, 77.
+
+Menger, 2, 5, 101, 112.
+
+Mengotti, 50.
+
+Mercier de la Riviere, 22.
+
+Mercantilists, 9, 47, 48, 96, 97, 116, 121, 126, 225, 236, 254; new,
+116.
+
+Merivale, 172.
+
+Meyer, G., 246.
+
+Michaelis, 135.
+
+Mill, J., 47, 126, 216.
+
+Mill, J. S., 5, 20, 22, 34, 38, 40, 42, 46, 51, 74, 79, 88, 90, 97, 106,
+107, 111, 113, 121, 126, 150, 152, 153, 157, 163, 164, 166, 170, 172,
+176, 177, 178, 180, 183, 186, 188, 192, 195, 197, 213, 216, 221, 243,
+250, 259, 262, 264.
+
+Minard, 223.
+
+Mirabeau, Marq. de, 95, 97, 98, 117, 144, 147, 191, 210, 214, 254, 263.
+
+Mirabeau, Son, 256.
+
+Mischler, 1.
+
+Mittermaier, 94.
+
+Mohl, R., 242, 253, 258, 259, 262.
+
+Moleschott, 162.
+
+Moncada, 137.
+
+Montaigne, M., 98, 236.
+
+Montanari, 100, 116, 123, 125, 127, 188, 220.
+
+Montchretien de Vatteville, 9, 16, 48, 57.
+
+Montecuccoli, 16.
+
+Montesquieu, 37, 77, 89, 95, 116, 118, 123, 185, 192, 199, 205, 220,
+221, 237, 238, 240, 248.
+
+Moreau de Jonnes, 18.
+
+Morelly, 79.
+
+Morhof, 19.
+
+Moritz (Marschall von Sachsen), 255.
+
+Morrison, 176, 178.
+
+Mortimer, Th., 173, 175; II, 53.
+
+Morus, Th., 79, 98, 117, 147, 166.
+
+Moeser, J., 42, 63, 69, 91, 117, 161, 169, 173, 191, 200, 226, 242, 248,
+254, 256.
+
+Mueller, Ad., 3, 5, 11, 12, 22, 28, 42, 50, 55, 64, 116, 117, 120, 202.
+
+Mun, Th., 48, 116.
+
+Muret, 239.
+
+Murhard, K., 52.
+
+
+N.
+
+Nau, 19.
+
+Nebenius, 89, 120, 137, 150, 182, 184, 186, 187, 195, 199, 219.
+
+Necker, 103, 163, 204, 254.
+
+Neri, P., 100, 118, 120.
+
+Neumann, F. J., 6, 16, 100, 246.
+
+Newmarch, 137.
+
+Niebuhr, B. G., 92.
+
+North, Sir D., 9, 12, 47, 48, 97, 98, 114, 116, 121, 123, 152, 154, 179,
+191.
+
+
+O.
+
+Obrecht, 237a;
+
+II, 164.
+
+Oppenheim, 116.
+
+Oresmius, 116, 120.
+
+Ortes, 16, 34, 38, 117, 194, 217, 242.
+
+Owen, R., 66, 128.
+
+
+P.
+
+Pagnini, 100, 137.
+
+Paley, 50, 254.
+
+Palmieri, 9.
+
+Paoletti, 173.
+
+Paris, Comte de, 176.
+
+Patricius, 48, 246, 254.
+
+Paucton, 143.
+
+Paullus, Jul., 116.
+
+Perikles, 231.
+
+Perin, 11, 254.
+
+Petty, Sir W., 16, 47, 48, 57, 107, 116, 123, 127, 129, 154, 164, 193,
+214, 254.
+
+Philemon, 69.
+
+Physiocrates, 5, 8, 47, 49, 97, 101, 106, 128, 147, 154, 159, 214, 221,
+225, 254.
+
+(Pinto), 90, 98, 123, 221, 225.
+
+Pitt, 254.
+
+Plato, 9, 12, 21, 23, 42, 57, 61, 62, 79, 116, 190, 211, 250, 251.
+
+---- Eryxias, 116.
+
+Plinius (Major), 71, 79, 117, 120, 225, 231.
+
+Plotinos, 79.
+
+Plutarch, 73.
+
+Poelitz, 17; II, 194.
+
+Pollexfen, 9.
+
+Porter, 129, 205.
+
+Postlethwayt, 173.
+
+Price, 238.
+
+Prittwitz, v., 17, 51, 214, 263.
+
+Proudhon, 5, 66, 70, 77, 81, 82, 85, 97, 185.
+
+Puchta, G. F., 11, 14.
+
+Purves, 253.
+
+
+Q.
+
+Quesnay, 42, 44, 47, 49, 98, 101, 116, 121, 123, 125, 137, 147, 154,
+214, 221, 254.
+
+Quetelet, 18, 248.
+
+
+R.
+
+Rae, 45, 59.
+
+Raleigh, Sir W., 140, 241, 252, 254.
+
+Rau, K. H., 3, 5, 6, 9, 20, 22, 33, 38, 42, 43, 49, 50, 58, 64, 101,
+106, 109, 110, 111, 112, 116, 118, 120, 129, 131, 137, 143, 144, 145,
+146, 147, 153, 156, 161, 166, 168, 179, 181, 194, 195, 208, 212, 216,
+225, 253.
+
+Raumer, F. v., 49.
+
+Raynal, 49, 62, 214.
+
+Read, 195.
+
+Reformers, 47.
+
+Reitemeyer, 135.
+
+Reybaud, 78, 79.
+
+Ricardo, 1, 5, 22, 43, 44, 66, 90, 106, 107, 109, 111, 126, 129, 147,
+148, 150, 151, 152, 153, 154, 157, 164, 173, 175, 183, 184, 185, 186,
+188, 195, 197, 201, 202, 212, 216, 263.
+
+Ricardo's School, 47, 128, 157, 183, 197, 200.
+
+Richelieu, 16.
+
+Riedel, 16, 31, 65, 106, 118, 179, 195; II, 139, 187.
+
+Riehl, 41, 56, 169, 230.
+
+Ritter, K., 37.
+
+Rivet, 258.
+
+Rodbertus, 97, 135, 154, 201.
+
+Roesler, 90, 157, 173, 193, 195, 207.
+
+Rossi, 9, 42, 46, 243, 248.
+
+Roessig, 19.
+
+Rousseau, J. J., 16, 57, 62, 79, 169, 202, 205, 229, 254.
+
+Ruemelin, 18.
+
+
+S.
+
+Sadler, Th., 239, 242, 243, 245.
+
+St. Chamans, 8, 90, 116, 123, 144, 214.
+
+St. Just, 79.
+
+St. Simon, 54, 70, 80, 84, 86, 90.
+
+St. Simonists, 54, 70, 80, 84, 86, 90.
+
+Sallustius, 14, 21.
+
+Salmasius, 89, 97, 114, 116, 191, 193.
+
+Sartorius, 29, 128.
+
+Say, J. B., 1, 12, 16, 20, 22, 42, 43, 47, 50, 51, 53, 55, 58, 71, 87,
+90, 98, 104, 106, 108, 115, 129, 137, 144, 145, 147, 151, 154, 169, 183,
+195, 199, 200, 212, 216, 218, 223, 231, 243, 256, 263.
+
+Say, L., 4, 9.
+
+Scaruffii, 134.
+
+Schaeffle, 1, 2, 3, 4, 12, 30, 42, 43, 44, 47, 79, 89, 102, 110, 114,
+117, 129, 152, 159, 176, 196a, 207, 208, 218, 246, 250, 251, 258.
+
+Schiller, Fr., 30, 169, 204.
+
+Schleiermacher, 16, 55, 63.
+
+Schlettwein, 128, 145.
+
+Schlazer, U. L. v., 18, 144.
+
+Schloezer, Chr. v., 42, 116, 117, 128, 168, 185, 254.
+
+Schmalz, 17, 19, 152, 195.
+
+Schmitthenner, 42, 44, 50, 54, 95, 99, 108, 116, 117, 121, 224, 253.
+
+Schmoller, 42, 147.
+
+Schoen, J., 11, 50, 97, 195.
+
+Schroeder, v., 9, 19, 42, 53, 54, 90, 116, 199, 210, 221.
+
+Schulze, F. G., 20, 69, 96.
+
+Schuez, 11.
+
+Scialoja, 13, 17, 38, 41, 51.
+
+Seckendorff, B. L. v., 19, 114, 116, 237, 254.
+
+Seneca, L., 51, 69, 79, 100, 190, 214.
+
+Seneca, M., 251.
+
+Senior, 2, 22, 33, 34, 40, 46, 58, 102, 110, 112, 115, 121, 126, 129,
+130, 142, 143, 148, 152, 155, 161, 165, 166, 167, 169, 173, 180, 181,
+183, 185, 187, 189, 195, 200, 212, 242.
+
+Serra, 33, 48, 181.
+
+Shakespeare, 191.
+
+Shuckburgh, 132, 137.
+
+Sismondi, 12, 22, 44, 50, 54, 55, 93, 97, 98, 106, 109, 117, 123, 128,
+144, 145, 147, 153, 154, 168, 174, 195, 201, 210, 214, 215, 216, 221,
+231, 242.
+
+Smith, Ad., 1, 2, 5, 11, 12, 20, 39, 40, 42, 44, 47, 48, 49, 52, 55, 57,
+58, 59, 66, 71, 81, 91, 97, 98, 104, 106, 107, 111, 112, 113, 116, 117,
+119, 120, 121, 123, 125, 128, 129, 130, 131, 134, 135, 137, 144, 147,
+148, 153, 154, 157, 161, 163, 164, 166, 167, 168, 171, 172, 174, 176,
+179, 183, 185, 186, 192, 193, 195, 197, 202, 213, 214, 218, 221, 226,
+236, 238, 242.
+
+Smith, Th., 116, 137.
+
+Socialists, 6, 9, 12, 22, 53, 62, 66, 81, 82, 85, 88, 97, 117, 147, 148,
+202, 205, 214, 242, 254, 265.
+
+Soden, Graf, 16, 51, 92, 129, 194, 212.
+
+Soetbeer, 138.
+
+Socrates, 9, 71, 100, 250, 251.
+
+Solera, 120.
+
+Solly, 214.
+
+Sonnenfels, v., 160, 194, 254.
+
+Spinoza, 88, 254.
+
+Spittler, 81.
+
+Stahl, F. J., 24, 78.
+
+Stein, K. v., 254, 265.
+
+Stein, L. v., 14, 16, 46, 79, 98, 207.
+
+Steinlein, 30, 47, 61.
+
+Steuart, Sir J., 16, 20, 25, 34, 42, 71, 100, 104, 117, 123, 127, 134,
+137, 147, 157, 199, 201, 213, 224, 239, 242, 253, 254, 263.
+
+Stoics, 72.
+
+Storch, H., 2, 3, 5, 7, 8, 10, 17, 27, 46, 50, 53, 55, 62, 71, 91, 96,
+106, 115, 116, 117, 120, 145, 147, 165.
+
+Strabo, 37, 61.
+
+Struensee, v., 90, 96, 119, 210.
+
+Suessmilch, 239, 245, 247, 254, 256.
+
+
+T.
+
+Tacitus, 41, 238, 250, 251.
+
+Temple, Sir W., 41, 57, 98, 104, 115, 157, 185, 188, 214, 222, 231, 254.
+
+Tengoborsky, 40, 139.
+
+Thaer, 69, 112, 129, 131.
+
+Thiers, 77.
+
+Thomas, Aquin, 21, 49, 57, 191.
+
+Thomasius, Chr., 19, 114.
+
+Thornton, H., 101, 123, 125, 193.
+
+Thornton, W., 164, 166, 176, 253.
+
+Thucydides, Pref., 16, 36, 63, 229.
+
+Thuenen, v., 22, 106, 117, 149, 151, 154, 158, 161, 165, 173, 178, 183,
+195.
+
+Tocqueville, 71.
+
+Tooke, Th., 100, 103, 104, 107, 108, 109, 112, 113, 123, 128, 137, 139,
+157, 179, 188, 193.
+
+Torrens, 9, 58, 107, 126, 130, 157, 164, 260, 262.
+
+Townsend, 242.
+
+Tucker (Progress of the U. S.), 71.
+
+Tucker, J., 1, 16, 54, 57, 97, 98, 102, 130, 200, 216, 219, 254, 256,
+262.
+
+Turgot, 5, 9, 37, 42, 47, 49, 57, 70, 71, 90, 92, 95, 115, 116, 117,
+152, 159, 163, 178, 188, 191, 193, 194, 221, 232.
+
+Twiss, 121.
+
+
+U.
+
+Ulloa, 116.
+
+Umpfenbach, 39, 82, 152, 173.
+
+Ure, 173, 176.
+
+Ustariz, 241.
+
+
+V.
+
+Varro, 71.
+
+Vasco, 192, 194.
+
+Vauban, 9, 78, 147, 254.
+
+Vaughan, R., 107.
+
+Verri, 8, 9, 16, 42, 49, 55, 97, 98, 100, 101, 116, 123, 159, 205, 214,
+232, 254.
+
+Viaaxnes, 191.
+
+Villegardelle, 81.
+
+Virgilius, 117.
+
+Voltaire, 11, 98, 210, 225, 254, 255.
+
+
+W.
+
+Wagner, Ad., 13, 90.
+
+Wakefield, D., 51, 64, 89.
+
+Wakefield, E. G., 130, 185, 259.
+
+Walker, A., 151, 152, 176, 195, 202, 206, 242.
+
+Wallace, 242.
+
+Wappaeus, 246, 248.
+
+Watts, 176.
+
+Weinhold, 258.
+
+Weishaupt, 214.
+
+Wells, 10.
+
+West, 154.
+
+Weyland, 242, 243.
+
+Whately, 17, 21, 110, 149.
+
+Wirth, M., 185.
+
+Wit, J. de, 92, 108.
+
+Wolf, Chr. v., 175, 256.
+
+Wolkoff, 35, 42, 43, 161, 186.
+
+Woodward, 88.
+
+
+X.
+
+Xenophon, 9, 21, 57, 98, 100, 116.
+
+
+Y.
+
+Young, A., 32, 40, 42, 110, 137, 143, 242, 254.
+
+
+Z.
+
+Zachariae, K. S., 29, 37, 83, 87, 97, 128, 214, 229.
+
+Zeno, 98.
+
+Zincke, 49.
+
+Zwinglius, 191.
+
+
+
+
+DAVID ATWOOD, STEREOTYPER AND PRINTER, MADISON, WIS.
+
+
+
+Transcriber's Notes:
+
+Footnotes were moved to the end of the section to which they pertain.
+Because footnote numbers in the original begin at '1' for each section,
+the section number has been added before the footnote number, e.g. the
+first footnote in section 156 appears as: [156-1].
+
+In the Index to Names of Authors, references to sections 1 - 143 pertain
+to Volume 1. See https://www.gutenberg.org/ebooks/27698.
+
+The square root symbol is indicated by 'sqrt' followed by the figure in
+parentheses.
+
+In Footnote 174-8, the year '1700' in column B is as printed in the
+original, but may be a typo for '1800.' Column header codes were added to
+the tables in Footnotes 247-4 and 253-4 so that the tables would fit the
+page in standard view.
+
+Punctuation, including accents in French and Spanish, was standardized.
+Hyphenated words were standardized. For consistency with the remaining
+text, an umlaut was added to 'cooperate.' Duplicate words, e.g. 'the the,'
+were removed. Obsolete and alternative spellings were retained.
+
+  Other changes:
+    Section Footnote Alteration
+        145      - 'praticable' to 'practicable'
+        145    4 - 'higly' to 'highly'
+        146    1 - 'innocousness' to 'innocuousness'
+        154    7 - 'analagous' to 'analogous'
+        156    2 - 'diffcult' to 'difficult' and header added to right
+                   columns of table for clarity
+        161    4 - beginning of word, line 12 is missing.
+        162        'CXLII' to 'CLXII'
+        163        'themslves' to 'themselves'
+        164    5 - 'Sclavic' to 'Slavic'
+        167    8 - 'Hildebraud' to 'Hildebrand'
+        169    8 - '80' to '0.80' francs
+        174    2 - 'collossal' to 'colossal'
+        175    1 - 'domicil' to 'domicile'
+        176    1 - 'Spiers' to 'Spires' ('Speyer' in German)
+        177    4 - 'Eninb.' to 'Edinb.'
+        177    8 - 'tradesmens'' to 'tradesmen's'
+        178    5 - 'anterest' to 'interest'
+        183    4 - added '5' to '5/12'; numerator is blank in the original.
+        184    3 - 'Haudbuch' to 'Handbuch'
+        185    2 - 'Peleponnesian' to 'Peloponnesian'
+        186    9 - 'Staatswirthschatliche' to 'Staatswirthschaftliche'
+        191   10 - 'Samalsius' to 'Salmasius'
+        192    3 - 'analagous' to 'analogous'
+        193      - 'exceeedingly' to 'exceedingly'
+        194    1 - 'Confedration' to 'Confederation'
+        205    6 - 'anuum' to 'annum'
+        205    8 - in last paragraph, added decimal to '131.2'
+        207    4 - 'capaple' to 'capable'
+        207    8 - 'passsionnees' to 'passionnees'
+        208    4 - anchor missing in original; placed in likely position.
+        212      - 'pnrposes' to 'purposes'
+        213    1 - 'Smilh' to 'Smith'
+        213    3 - 'analagous' to 'analogous'
+        214      - 'civlization' to 'civilization'
+        214    8 - 'carricature' to 'caricature' and
+                   'reciprocquement' to 'reciproquement'
+        217      - 'but' to 'butt' ... butt-ends of the gun ...
+        219    2 - 'partment' to 'department'
+        220    5 - 'Similarlly' to 'Similarly'
+        221    2 - 'Lois' to 'Louis'
+        224      - 'itfelf' to 'itself'
+        228   13 - 'childrens'' to 'children's'
+        230    3 - 'candalabras' to 'candelabras'
+        231    1 - 'accounr' to 'account'
+        232      - 'palateable' to 'palatable'
+        232    5 - anchor missing in original; placed in likely position.
+        234    3 - 'as' to 'an' ... as an excuse.
+        235      - 'in stead' to 'instead'
+        237    2 - 'aerarium' to 'aerarian'
+        237a   5 - 'capiital' to 'capital'
+        237b   2 - 'chimnies' to 'chimneys'
+        237c   2 - 'Silesea' to 'Silesia'
+        237d   6 - 'Rheinish' to 'Rhenish'
+        238    1 - 'Teleogically' to 'Teleologically'
+        238    1 - 'Worterbuche' to 'Woerterbuch'
+        239    2 - 'societie' to 'societe' and 'divisee' to 'divisee'
+        239    3 - 'Enquete ... occulte' to 'Enquete ... occultes'
+        240      - 'uniformily' to 'uniformly'
+        242      - 'incontestibly' to 'incontestably'
+        242      - 'grevious' to 'grievous'
+        242    5 - 'imposees' to 'imposees'
+        242   10 - 'Chateanneuf' to 'Chateauneuf'
+        242   10 - 'Familes' to 'Familles'
+        242   15 - 'Reflessioni ... Populazione' to
+                     'Riflessioni ... Popolazione'
+        243    7 - 'extraordinay' to 'extraordinary'
+        244    5 - 'Germanans' to 'Germans'
+        244    6 - 'civtilzed' to 'civilized'
+        245    5 - added 'of' to phrase '... one of the principal ...'
+        245    8 - 'Persannes' to 'Persanes'
+        245   12 - 'Prussaia' to 'Prussia'
+        246   11 - 'Gessellschaft' to 'Gesellschaft'
+        247    7 - 'Pommeranian' to 'Pomeranian'
+        248    8 - 'geater' to 'greater'
+        249    3 - 'legitamatized' to 'legitimatized'
+        249    7 - 'Vicbahn' to 'Viebahn'
+        249   10 - 'Chatelet' to 'Chatelet'
+        249   14 - 'Mediceinische' to 'Mediceische'
+        249   15 - 'Duchatelet' to Du Chatelet'
+        250    3 - 'frauzoesischen' to 'franzoesischen'
+        250    4 - 'Plutatch' to 'Plutarch'
+        250    5 - 'Thesmophoriazasuses' to 'Thesmophoriazusae'
+        250    7 - 'rennaissance' to 'renaissance'
+        250    7 - 'Pausam.' to 'Pausan.'
+        250   10 - 'Weltjkonomie' to 'Weltoekonomie'
+        251      - 'p lyandry' to 'polyandry'
+        251    2 - 'transkaukasia' to 'Transkaukasia'
+        252    1 - 'Litthuanian' to 'Lithuanian'
+        253      - 'earlist' to 'earliest' and 'manifest' to 'manifests'
+        253    1 - 'Akadamie' to 'Akademie'
+        253    7 - 'Schmithenner' to 'Schmitthenner'
+        254    2 - 'Politche' to 'Politiche'
+        254    4 - 'Phillippe' to 'Philippe'
+        256    8 - 'Freidrichs' to 'Friedrichs'
+        256    9 - 'Salsburg' to 'Salzburg'
+        256   10 - 'end' to 'und'
+        256   12 - 'Spiers' to 'Spires'
+        258   17 - 'Un' to 'An'; 'Milleleuropa' to 'Mitteleuropa'; and
+                     'kultivirten' to 'kultivieren'
+        259    5 - 'Sclavic' to 'Slavic'
+        262    2 - 'Appollo' to 'Apollo'
+        262a   4 - 'Appenines' to 'Apennines'
+        262a   6 - 'bivouacing' to 'bivouacking'
+        263    1 - 'histoirique' to 'historique'
+        264    2 - 'controvery' to 'controversy'
+  Apx 2   1      - 'ausgebeuteteten' to 'ausgebeuteten'
+      2   1    3 - 'univesrsalissima' to 'universalissima'
+      2   1    5 - 'commerzio' to 'commercio'
+      2   2   12 - 'Mauth' to 'Maut'
+      2   4      - 'Realisirung' to 'Realisierung'
+      2   4    3 - 'Menreinfuhr' to 'Mehreinfuhr'
+      2   5    5 - 'an' to 'au'
+      2   6    1 - 'Astarta' to 'Astarte'
+      2   6    4 - 'Nymweg' to 'Nijmegen'
+      3   4    7 - 'resourcess' to 'resources'
+      3   7    1 - 'repressailles' to 'represailles' and
+                     'Mercantilsystem' to 'Merkantilsystem'
+  Index            'Obrecht, 238a' to 'Obrecht, 237a'
+
+
+
+
+
+End of the Project Gutenberg EBook of Principles of Political Economy, Vol.
+II, by William Roscher
+
+*** END OF THIS PROJECT GUTENBERG EBOOK PRINCIPLES POLITICAL ECONOMY, VOL II ***
+
+***** This file should be named 38655.txt or 38655.zip *****
+This and all associated files of various formats will be found in:
+        https://www.gutenberg.org/3/8/6/5/38655/
+
+Produced by Frank van Drogen, Carol Brown, Gwen Adams,
+Elizabeth Oscanyan, and the Online Distributed Proofreading
+Team at https://www.pgdp.net.
+
+
+Updated editions will replace the previous one--the old editions
+will be renamed.
+
+Creating the works from public domain print editions means that no
+one owns a United States copyright in these works, so the Foundation
+(and you!) can copy and distribute it in the United States without
+permission and without paying copyright royalties.  Special rules,
+set forth in the General Terms of Use part of this license, apply to
+copying and distributing Project Gutenberg-tm electronic works to
+protect the PROJECT GUTENBERG-tm concept and trademark.  Project
+Gutenberg is a registered trademark, and may not be used if you
+charge for the eBooks, unless you receive specific permission.  If you
+do not charge anything for copies of this eBook, complying with the
+rules is very easy.  You may use this eBook for nearly any purpose
+such as creation of derivative works, reports, performances and
+research.  They may be modified and printed and given away--you may do
+practically ANYTHING with public domain eBooks.  Redistribution is
+subject to the trademark license, especially commercial
+redistribution.
+
+
+
+*** START: FULL LICENSE ***
+
+THE FULL PROJECT GUTENBERG LICENSE
+PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK
+
+To protect the Project Gutenberg-tm mission of promoting the free
+distribution of electronic works, by using or distributing this work
+(or any other work associated in any way with the phrase "Project
+Gutenberg"), you agree to comply with all the terms of the Full Project
+Gutenberg-tm License (available with this file or online at
+https://gutenberg.org/license).
+
+
+Section 1.  General Terms of Use and Redistributing Project Gutenberg-tm
+electronic works
+
+1.A.  By reading or using any part of this Project Gutenberg-tm
+electronic work, you indicate that you have read, understand, agree to
+and accept all the terms of this license and intellectual property
+(trademark/copyright) agreement.  If you do not agree to abide by all
+the terms of this agreement, you must cease using and return or destroy
+all copies of Project Gutenberg-tm electronic works in your possession.
+If you paid a fee for obtaining a copy of or access to a Project
+Gutenberg-tm electronic work and you do not agree to be bound by the
+terms of this agreement, you may obtain a refund from the person or
+entity to whom you paid the fee as set forth in paragraph 1.E.8.
+
+1.B.  "Project Gutenberg" is a registered trademark.  It may only be
+used on or associated in any way with an electronic work by people who
+agree to be bound by the terms of this agreement.  There are a few
+things that you can do with most Project Gutenberg-tm electronic works
+even without complying with the full terms of this agreement.  See
+paragraph 1.C below.  There are a lot of things you can do with Project
+Gutenberg-tm electronic works if you follow the terms of this agreement
+and help preserve free future access to Project Gutenberg-tm electronic
+works.  See paragraph 1.E below.
+
+1.C.  The Project Gutenberg Literary Archive Foundation ("the Foundation"
+or PGLAF), owns a compilation copyright in the collection of Project
+Gutenberg-tm electronic works.  Nearly all the individual works in the
+collection are in the public domain in the United States.  If an
+individual work is in the public domain in the United States and you are
+located in the United States, we do not claim a right to prevent you from
+copying, distributing, performing, displaying or creating derivative
+works based on the work as long as all references to Project Gutenberg
+are removed.  Of course, we hope that you will support the Project
+Gutenberg-tm mission of promoting free access to electronic works by
+freely sharing Project Gutenberg-tm works in compliance with the terms of
+this agreement for keeping the Project Gutenberg-tm name associated with
+the work.  You can easily comply with the terms of this agreement by
+keeping this work in the same format with its attached full Project
+Gutenberg-tm License when you share it without charge with others.
+
+1.D.  The copyright laws of the place where you are located also govern
+what you can do with this work.  Copyright laws in most countries are in
+a constant state of change.  If you are outside the United States, check
+the laws of your country in addition to the terms of this agreement
+before downloading, copying, displaying, performing, distributing or
+creating derivative works based on this work or any other Project
+Gutenberg-tm work.  The Foundation makes no representations concerning
+the copyright status of any work in any country outside the United
+States.
+
+1.E.  Unless you have removed all references to Project Gutenberg:
+
+1.E.1.  The following sentence, with active links to, or other immediate
+access to, the full Project Gutenberg-tm License must appear prominently
+whenever any copy of a Project Gutenberg-tm work (any work on which the
+phrase "Project Gutenberg" appears, or with which the phrase "Project
+Gutenberg" is associated) is accessed, displayed, performed, viewed,
+copied or distributed:
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+1.E.2.  If an individual Project Gutenberg-tm electronic work is derived
+from the public domain (does not contain a notice indicating that it is
+posted with permission of the copyright holder), the work can be copied
+and distributed to anyone in the United States without paying any fees
+or charges.  If you are redistributing or providing access to a work
+with the phrase "Project Gutenberg" associated with or appearing on the
+work, you must comply either with the requirements of paragraphs 1.E.1
+through 1.E.7 or obtain permission for the use of the work and the
+Project Gutenberg-tm trademark as set forth in paragraphs 1.E.8 or
+1.E.9.
+
+1.E.3.  If an individual Project Gutenberg-tm electronic work is posted
+with the permission of the copyright holder, your use and distribution
+must comply with both paragraphs 1.E.1 through 1.E.7 and any additional
+terms imposed by the copyright holder.  Additional terms will be linked
+to the Project Gutenberg-tm License for all works posted with the
+permission of the copyright holder found at the beginning of this work.
+
+1.E.4.  Do not unlink or detach or remove the full Project Gutenberg-tm
+License terms from this work, or any files containing a part of this
+work or any other work associated with Project Gutenberg-tm.
+
+1.E.5.  Do not copy, display, perform, distribute or redistribute this
+electronic work, or any part of this electronic work, without
+prominently displaying the sentence set forth in paragraph 1.E.1 with
+active links or immediate access to the full terms of the Project
+Gutenberg-tm License.
+
+1.E.6.  You may convert to and distribute this work in any binary,
+compressed, marked up, nonproprietary or proprietary form, including any
+word processing or hypertext form.  However, if you provide access to or
+distribute copies of a Project Gutenberg-tm work in a format other than
+"Plain Vanilla ASCII" or other format used in the official version
+posted on the official Project Gutenberg-tm web site (www.gutenberg.org),
+you must, at no additional cost, fee or expense to the user, provide a
+copy, a means of exporting a copy, or a means of obtaining a copy upon
+request, of the work in its original "Plain Vanilla ASCII" or other
+form.  Any alternate format must include the full Project Gutenberg-tm
+License as specified in paragraph 1.E.1.
+
+1.E.7.  Do not charge a fee for access to, viewing, displaying,
+performing, copying or distributing any Project Gutenberg-tm works
+unless you comply with paragraph 1.E.8 or 1.E.9.
+
+1.E.8.  You may charge a reasonable fee for copies of or providing
+access to or distributing Project Gutenberg-tm electronic works provided
+that
+
+- You pay a royalty fee of 20% of the gross profits you derive from
+     the use of Project Gutenberg-tm works calculated using the method
+     you already use to calculate your applicable taxes.  The fee is
+     owed to the owner of the Project Gutenberg-tm trademark, but he
+     has agreed to donate royalties under this paragraph to the
+     Project Gutenberg Literary Archive Foundation.  Royalty payments
+     must be paid within 60 days following each date on which you
+     prepare (or are legally required to prepare) your periodic tax
+     returns.  Royalty payments should be clearly marked as such and
+     sent to the Project Gutenberg Literary Archive Foundation at the
+     address specified in Section 4, "Information about donations to
+     the Project Gutenberg Literary Archive Foundation."
+
+- You provide a full refund of any money paid by a user who notifies
+     you in writing (or by e-mail) within 30 days of receipt that s/he
+     does not agree to the terms of the full Project Gutenberg-tm
+     License.  You must require such a user to return or
+     destroy all copies of the works possessed in a physical medium
+     and discontinue all use of and all access to other copies of
+     Project Gutenberg-tm works.
+
+- You provide, in accordance with paragraph 1.F.3, a full refund of any
+     money paid for a work or a replacement copy, if a defect in the
+     electronic work is discovered and reported to you within 90 days
+     of receipt of the work.
+
+- You comply with all other terms of this agreement for free
+     distribution of Project Gutenberg-tm works.
+
+1.E.9.  If you wish to charge a fee or distribute a Project Gutenberg-tm
+electronic work or group of works on different terms than are set
+forth in this agreement, you must obtain permission in writing from
+both the Project Gutenberg Literary Archive Foundation and Michael
+Hart, the owner of the Project Gutenberg-tm trademark.  Contact the
+Foundation as set forth in Section 3 below.
+
+1.F.
+
+1.F.1.  Project Gutenberg volunteers and employees expend considerable
+effort to identify, do copyright research on, transcribe and proofread
+public domain works in creating the Project Gutenberg-tm
+collection.  Despite these efforts, Project Gutenberg-tm electronic
+works, and the medium on which they may be stored, may contain
+"Defects," such as, but not limited to, incomplete, inaccurate or
+corrupt data, transcription errors, a copyright or other intellectual
+property infringement, a defective or damaged disk or other medium, a
+computer virus, or computer codes that damage or cannot be read by
+your equipment.
+
+1.F.2.  LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except for the "Right
+of Replacement or Refund" described in paragraph 1.F.3, the Project
+Gutenberg Literary Archive Foundation, the owner of the Project
+Gutenberg-tm trademark, and any other party distributing a Project
+Gutenberg-tm electronic work under this agreement, disclaim all
+liability to you for damages, costs and expenses, including legal
+fees.  YOU AGREE THAT YOU HAVE NO REMEDIES FOR NEGLIGENCE, STRICT
+LIABILITY, BREACH OF WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
+PROVIDED IN PARAGRAPH 1.F.3.  YOU AGREE THAT THE FOUNDATION, THE
+TRADEMARK OWNER, AND ANY DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE
+LIABLE TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR
+INCIDENTAL DAMAGES EVEN IF YOU GIVE NOTICE OF THE POSSIBILITY OF SUCH
+DAMAGE.
+
+1.F.3.  LIMITED RIGHT OF REPLACEMENT OR REFUND - If you discover a
+defect in this electronic work within 90 days of receiving it, you can
+receive a refund of the money (if any) you paid for it by sending a
+written explanation to the person you received the work from.  If you
+received the work on a physical medium, you must return the medium with
+your written explanation.  The person or entity that provided you with
+the defective work may elect to provide a replacement copy in lieu of a
+refund.  If you received the work electronically, the person or entity
+providing it to you may choose to give you a second opportunity to
+receive the work electronically in lieu of a refund.  If the second copy
+is also defective, you may demand a refund in writing without further
+opportunities to fix the problem.
+
+1.F.4.  Except for the limited right of replacement or refund set forth
+in paragraph 1.F.3, this work is provided to you 'AS-IS' WITH NO OTHER
+WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
+WARRANTIES OF MERCHANTIBILITY OR FITNESS FOR ANY PURPOSE.
+
+1.F.5.  Some states do not allow disclaimers of certain implied
+warranties or the exclusion or limitation of certain types of damages.
+If any disclaimer or limitation set forth in this agreement violates the
+law of the state applicable to this agreement, the agreement shall be
+interpreted to make the maximum disclaimer or limitation permitted by
+the applicable state law.  The invalidity or unenforceability of any
+provision of this agreement shall not void the remaining provisions.
+
+1.F.6.  INDEMNITY - You agree to indemnify and hold the Foundation, the
+trademark owner, any agent or employee of the Foundation, anyone
+providing copies of Project Gutenberg-tm electronic works in accordance
+with this agreement, and any volunteers associated with the production,
+promotion and distribution of Project Gutenberg-tm electronic works,
+harmless from all liability, costs and expenses, including legal fees,
+that arise directly or indirectly from any of the following which you do
+or cause to occur: (a) distribution of this or any Project Gutenberg-tm
+work, (b) alteration, modification, or additions or deletions to any
+Project Gutenberg-tm work, and (c) any Defect you cause.
+
+
+Section  2.  Information about the Mission of Project Gutenberg-tm
+
+Project Gutenberg-tm is synonymous with the free distribution of
+electronic works in formats readable by the widest variety of computers
+including obsolete, old, middle-aged and new computers.  It exists
+because of the efforts of hundreds of volunteers and donations from
+people in all walks of life.
+
+Volunteers and financial support to provide volunteers with the
+assistance they need are critical to reaching Project Gutenberg-tm's
+goals and ensuring that the Project Gutenberg-tm collection will
+remain freely available for generations to come.  In 2001, the Project
+Gutenberg Literary Archive Foundation was created to provide a secure
+and permanent future for Project Gutenberg-tm and future generations.
+To learn more about the Project Gutenberg Literary Archive Foundation
+and how your efforts and donations can help, see Sections 3 and 4
+and the Foundation web page at https://www.pglaf.org.
+
+
+Section 3.  Information about the Project Gutenberg Literary Archive
+Foundation
+
+The Project Gutenberg Literary Archive Foundation is a non profit
+501(c)(3) educational corporation organized under the laws of the
+state of Mississippi and granted tax exempt status by the Internal
+Revenue Service.  The Foundation's EIN or federal tax identification
+number is 64-6221541.  Its 501(c)(3) letter is posted at
+https://pglaf.org/fundraising.  Contributions to the Project Gutenberg
+Literary Archive Foundation are tax deductible to the full extent
+permitted by U.S. federal laws and your state's laws.
+
+The Foundation's principal office is located at 4557 Melan Dr. S.
+Fairbanks, AK, 99712., but its volunteers and employees are scattered
+throughout numerous locations.  Its business office is located at
+809 North 1500 West, Salt Lake City, UT 84116, (801) 596-1887, email
+business@pglaf.org.  Email contact links and up to date contact
+information can be found at the Foundation's web site and official
+page at https://pglaf.org
+
+For additional contact information:
+     Dr. Gregory B. Newby
+     Chief Executive and Director
+     gbnewby@pglaf.org
+
+
+Section 4.  Information about Donations to the Project Gutenberg
+Literary Archive Foundation
+
+Project Gutenberg-tm depends upon and cannot survive without wide
+spread public support and donations to carry out its mission of
+increasing the number of public domain and licensed works that can be
+freely distributed in machine readable form accessible by the widest
+array of equipment including outdated equipment.  Many small donations
+($1 to $5,000) are particularly important to maintaining tax exempt
+status with the IRS.
+
+The Foundation is committed to complying with the laws regulating
+charities and charitable donations in all 50 states of the United
+States.  Compliance requirements are not uniform and it takes a
+considerable effort, much paperwork and many fees to meet and keep up
+with these requirements.  We do not solicit donations in locations
+where we have not received written confirmation of compliance.  To
+SEND DONATIONS or determine the status of compliance for any
+particular state visit https://pglaf.org
+
+While we cannot and do not solicit contributions from states where we
+have not met the solicitation requirements, we know of no prohibition
+against accepting unsolicited donations from donors in such states who
+approach us with offers to donate.
+
+International donations are gratefully accepted, but we cannot make
+any statements concerning tax treatment of donations received from
+outside the United States.  U.S. laws alone swamp our small staff.
+
+Please check the Project Gutenberg Web pages for current donation
+methods and addresses.  Donations are accepted in a number of other
+ways including including checks, online payments and credit card
+donations.  To donate, please visit: https://pglaf.org/donate
+
+
+Section 5.  General Information About Project Gutenberg-tm electronic
+works.
+
+Professor Michael S. Hart was the originator of the Project Gutenberg-tm
+concept of a library of electronic works that could be freely shared
+with anyone.  For thirty years, he produced and distributed Project
+Gutenberg-tm eBooks with only a loose network of volunteer support.
+
+
+Project Gutenberg-tm eBooks are often created from several printed
+editions, all of which are confirmed as Public Domain in the U.S.
+unless a copyright notice is included.  Thus, we do not necessarily
+keep eBooks in compliance with any particular paper edition.
+
+
+Most people start at our Web site which has the main PG search facility:
+
+     https://www.gutenberg.org
+
+This Web site includes information about Project Gutenberg-tm,
+including how to make donations to the Project Gutenberg Literary
+Archive Foundation, how to help produce our new eBooks, and how to
+subscribe to our email newsletter to hear about new eBooks.
diff --git a/38655.zip b/38655.zip
new file mode 100644
index 0000000..d05a573
--- /dev/null
+++ b/38655.zip
diff --git a/LICENSE.txt b/LICENSE.txt
new file mode 100644
index 0000000..6312041
--- /dev/null
+++ b/LICENSE.txt
@@ -0,0 +1,11 @@
+This eBook, including all associated images, markup, improvements,
+metadata, and any other content or labor, has been confirmed to be
+in the PUBLIC DOMAIN IN THE UNITED STATES.
+
+Procedures for determining public domain status are described in
+the "Copyright How-To" at https://www.gutenberg.org.
+
+No investigation has been made concerning possible copyrights in
+jurisdictions other than the United States. Anyone seeking to utilize
+this eBook outside of the United States should confirm copyright
+status under the laws that apply to them.
diff --git a/README.md b/README.md
new file mode 100644
index 0000000..bb1a4ab
--- /dev/null
+++ b/README.md
@@ -0,0 +1,2 @@
+Project Gutenberg (https://www.gutenberg.org) public repository for
+eBook #38655 (https://www.gutenberg.org/ebooks/38655)