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+ 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 & 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 & 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.—INCOME.—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.—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.—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—$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.—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—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 <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—</td> +<td class="right">In the case of 11th class land—</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 500</td> +<td class="center">55 </td><td class="center">42.9</td></tr> + +<tr><td class="left">Of 800</td> +<td class="center">52½</td> <td class="center">39½</td></tr> + +<tr><td class="left">Of 1600</td> <td class="center">48 </td> +<td class="center">34 </td></tr> + +<tr><td class="left">Of 2400</td> <td class="center">43.8</td> +<td class="center">26 </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—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 √<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.—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—<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>—<i>Tacit.</i>, Germ., 16—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—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. <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.—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—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.—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.—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.—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—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.—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.—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;">—</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.—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;">—</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"> 3 scheffels.</td> +</tr> + +<tr><td class="center">8,</td> <td class="left">96</td> +<td class="center">"</td> <td class="center"> 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.—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—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.</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.—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.—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.—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.—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—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.—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—22½s.</td> <td +class="center">5s. 7d.</td></tr> + +<tr><td class="left">Gloucester,</td> <td class="right">13—15¼s.</td> +<td class="center">8s. 8d.</td></tr> + +<tr><td class="left">Somerset,</td> <td class="right">16¾—19¾s.</td> +<td class="center">8s. 9d.</td></tr> + +<tr><td class="left">Wilts,</td> <td +class="right">13-7/12—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: √<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.—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—one of + many—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 & 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">—</td> <td class="center">—</td> +<td class="center">—</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">—</td> <td class="center">—</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">—</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">—</td> +<td class="center">—</td> +<td class="center">—</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.—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.—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.—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.—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.—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.—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—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—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.—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—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.</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—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.—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.—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.—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.—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.—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.—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.—GOVERNMENT +INTERFERENCE.—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—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.—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.—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.—<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.—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.—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—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. 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.—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.—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.—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">—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—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>—<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.—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.—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.—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.—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 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 ⎫</td> +<td class="left">62 ⎫</td> +<td class="left">55 ⎫</td> +<td class="left">50 ⎫</td></tr> + +<tr><td class="left">Clothing,</td><td class="left">15 ⎪</td> +<td class="left">16 ⎪</td> +<td class="left">18 ⎪</td> +<td class="left">18 ⎪</td></tr> + +<tr><td class="left">Shelter,</td><td class="left">10 ⎬ 95</td> +<td class="left">12 ⎬ 95</td> +<td class="left">12 ⎬ 90</td> +<td class="left">12 ⎬ 85</td></tr> + +<tr><td class="left">Heating and lighting,</td><td class="left"><span +class="hidenum">0</span>5 +⎪</td> +<td class="left"><span class="hidenum">0</span>5 ⎭</td> +<td class="left"><span class="hidenum">0</span>5 ⎭</td> +<td class="left"><span class="hidenum">0</span>5 ⎭</td></tr> + +<tr><td class="left">Utensils and tools,</td><td class="left"><span +class="hidenum">0</span>4 +⎭</td></tr> + +<tr><td class="left2">Education, instruction,</td> +<td class="left2"><span class="hidenum">0</span>2 ⎫</td> +<td class="left2"><span class="hidenum">0</span>2 ⎫</td> +<td class="left2">3.5 ⎫</td> +<td class="left2">5.5 ⎫</td></tr> + +<tr><td class="left">Public security,</td><td class="left"><span +class="hidenum">0</span>1 ⎪</td> +<td class="left"><span class="hidenum">0</span>1 ⎪</td> +<td class="left">2<span class="hidenum">.5</span> ⎪</td> +<td class="left">3<span class="hidenum">.5</span> ⎪</td></tr> + +<tr><td class="left">Sanitary purposes</td><td class="left"><span +class="hidenum">0</span>1 ⎬ 5</td> +<td class="left"><span class="hidenum">0</span>1 ⎬ 5</td> +<td class="left">2<span class="hidenum">.0</span> ⎬ 10</td> +<td class="left">3<span class="hidenum">.0</span> ⎬ 15</td></tr> + +<tr><td class="left">Personal services,</td><td class="left"><span +class="hidenum">0</span>1 ⎭</td> +<td class="left"><span class="hidenum">0</span>1 ⎭</td> +<td class="left">2.5 ⎭</td> +<td class="left">3.5 ⎭</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.—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—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—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.—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.—<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.—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.—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 /> (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"> 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"> 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"> 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—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;">—</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.—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—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.—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>—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—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—the latter numbers, + according to official estimation, omitting the still-born—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—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.—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 "</td></tr> + +<tr><td class="left">In 1811-1815,</td> +<td class="left">41.5 "</td></tr> + +<tr><td class="left">In 1816-1820,</td> +<td class="left">31.6 "</td></tr> + +<tr><td class="left">In 1821-1825,</td> +<td class="left">32.1 "</td></tr> + +<tr><td class="left">In 1826-1830,</td> +<td class="left">33.0 "</td></tr> + +<tr><td class="left">In 1831-1836,</td> +<td class="left">34.0 "</td></tr> + +<tr><td class="left">In 1846-1850,</td> +<td class="left">37.8 "</td></tr> + +<tr><td class="left">In 1851-1854,</td> +<td class="left">37.88 "</td></tr> + +<tr><td class="left">In 1860-1864,</td> +<td class="left">37.56 "</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;">—</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">⎧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">⎩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">⎧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">⎩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.—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;">—</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.—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 "</td> <td +class="left">269 "</td></tr> + +<tr><td class="left">On monastery lands,</td><td class= +"left">163 "</td> <td +class="left">175 "</td></tr> + +<tr><td class="left">In the cities lands,</td><td class= +"left">115 "</td> <td class="left"> +104 "</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—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. + (<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—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.—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.—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;">—</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—</td></tr> +<tr><td class="left">1867-71, (average)</td><td class="right">33,355 & +48,296</td></tr> +<tr><td class="left">1872,</td><td class="right">57,621 & 66,919</td> +</tr> +<tr><td class="left">1873,</td><td class="right">51,432 & 48,608</td> +</tr> +<tr><td class="left">1874,</td><td class="right">24,093 & 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—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.</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;">—</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—labor which is the most injurious to health, the clearing + of the land, the construction of buildings—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 +</td><td class="right">73,971 </td></tr> + +<tr><td class="left">Through Hamburg,</td><td class="right">50,819 </td> +<td class="right">42,845 </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 </td> +<td class="right">22,753 </td></tr> + +<tr><td class="left">Through Antwerp,</td><td class="right">25,843 </td> +<td class="right">12,086 </td></tr> + +<tr><td class="left">Through other ports,</td><td class="right">2,500 +</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—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.<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——!</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—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.—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,—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 <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—and least of all of the whole world—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—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>—— Britannia languens, 123, <a href="#S196">196</a>.</li> + +<li>—— Discourse of Trade, Coyn and Paper-Credit, 48, 50, 90, +108, 123.</li> + +<li>—— England's great Happiness, <a href="#S196">196</a>.</li> + +<li>—— Interest of Money mistaken, <a +href="#S188">188</a>.</li> + +<li>—— Paying old Debts without new Taxes, 49.</li> + +<li>—— Virginia's Verger, 9.</li> + +<li>—— (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>—— 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> + + + + + + + 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