ERRATA. Page 10, line 9, for "are," read "is." 25, last Note, for "493," read "394." 'p. 30." 147, Note, dele the marks of quotation. 160, Note, last paragraph, dele the marks of quotation. 161, line 25, for "23," read “21." 164, line 15, for "1830," read "1836." 165, Note*, for "325," read "348." 174, Note †, for “540,” read “440.” 178, line 18 of Note, for "44," read “447.” 180, Note*, for "Montgomery," read "Martin." 66 line 4 of Note, for "old," read "new." 412, line 2, for "continent," read "hemisphere." The work of M. Lorain, referred to at page 188, is entitled "Tableau de l'Instruction Primaire en France." Paris, 1837. PREFACE. IN the First Part of this work the author offered to the consideration of the reader what he deemed to be the laws of the production and distribution of weaith. On the present occasion he offers a view of the disturbing causes by which the progress of mankind has been retarded or arrested, together with the effect as shown in the quality of labour-in the amount of production-in the mode of distribution-and in the present condition, moral and physical, of various nations. This portion has extended itself much beyond the limits originally contemplated, the consequence of which is that a third volume will be necessary for the completion of his work. That it has done so has arisen from the mass of facts that he has deemed it necessary to submit to the reader with a view to satisfy him that the laws offered for his consideration are universally true, and that the disturbing causes produce in all cases similar results. It will, perhaps, be objected that Political Economy is a science that depends almost exclusively upon reasoning, and that the facts he has adduced are unnecessary. In reply he begs leave to say that theories must be tested by facts, and if not confirmed thereby they must be rejected. Many writers ascribe much of the poverty of the people of France to the law of inheritance under which landed property is divided, and it is therefore important to inquire into the action of that system. All are aware that the people of France are poor, but the minute subdivision of landed property now going on may be a consequence of that poverty instead of a cause. To determine this question we must inquire into the operations of other nations, and when we do so we find that in Norway the custom of division has prevailed for many centuries without producing the results that are found in France, and that in Scotland, where it did not prevail, the land was, about the middle of last century, split up into small holdings, the whole product of which was barely sufficient to save the occupants from starvation. Here we have in Norway a similar system with different results, and in Scotland a different system with similar results. It is obviously impossible to admit the division of land as a cause of poverty, but we may be authorized to consider it a consequence thereof, when we observe that it prevails in all countries in which population increases without a corresponding increase of capital, as in France, India, Ireland, and recently in Scotland, and that it does not exist where population and capital increase together as in England and now in Scotland. It is therefore necessary to seek elsewhere for the causes of the very limited power of production that always accompanies it. It is held by many writers that increase of population is necessarily accompanied by increased difficulty of obtaining the means of subsistence. If the theory be sound, facts must prove it. On examination, however, we find that increase of population is generally accompanied by both moral and physical improvement, and that where it is not so there are disturbing causes, the work of man, that are abundantly sufficient to account for the difference that exists. The high wages of the United States are usually attributed to the abundance of land. If that were really the cause, we should find them higher in Russia and in South America where it is more abundant, yet such is not the case. If abundance of land tended to produce high wages it would preclude all competition in manufactures and navigation with the nations of the old world, yet in the United States both of those interests are prosperous, yielding high wages to the labourer and large profits to the capitalist. The causes of the prosperity of that country must therefore be sought elsewhere. To ascertain what are those causes, and to show the extent to which they have existed, is the object of this volume. How far the author has succeeded the reader will judge. In its preparation he has consulted in all cases the best authorities within his reach, and has generally depended for the statements in relation to each country upon the works published therein. In regard to his own he has, however, when he had not documentary information to offer to the reader, preferred to give the views of foreigners, and of such foreigners as were not to be suspected of prejudice in favour of its institutions. The reader will therefore find the works of Messrs. De Beaumont, De Tocqueville,t and Chevalier, usually adduced in support of his views in relation to the United States. * Marie. † De la Democratie en Amerique. The passages quoted are from the translation of Mr. Roscoe. 1837. Lettres sur l'Amerique du Nord, par M. Chevalier. 2 tom. 18mo. Bruxelles: PRINCIPLES OF POLITICAL ECONOMY. PART THE SECOND. CHAPTER I. OF THE INSTITUTION AND OBJECTS OF GOVERNMENT. In the infancy of society population is widely scattered over the earth. Man is dependent for food upon the superior soils, which scarcely afford him, in return to the severest labour, the means of subsistence. At one time he riots in abundance; at another, he is in a state approaching to starvation, when he roams over the earth ready to take by force what is required for the supply of his wants. His hand is against every man, and every man's hand is against him. He is obliged to rely upon his own powers for the protection of his person and of his property, and pursues his labours under the apprehension that the next comer may deprive him of food, of liberty, and perhaps of life. With improvement in the machinery of cultivation he is enabled to obtain from a diminished surface larger supplies of food-to draw nearer to his fellow men-to unite with them in exertions for their common good-and to devote a larger proportion of his time to the construction of houses, and to increasing in other ways the comforts and conveniences of life. Communities are formed, and each member is enabled to rely upon his neighbour for aid against marauders. Instead of pursuing his avocations under a constant dread of attack, he works in VOL. II.-2. security while his neighbour is on guard, and that neighbour feels equally secure when his time for labour comes round. He no longer carries his musket to the field; he is no longer compelled to limit his labours to the few acres adjoining his house; he no longer pursues those labours under the apprehension that his house may be burnt, and his wife and children carried into captivity during his temporary absence. At length a further division of labour takes place, and to certain persons are assigned the duty of attending to defence against exterior enemies, leaving the others to pursue their avocations in peace and security. Population and property increase, and it becomes necessary to establish rules for defining the rights of the various members of the community, and officers are appointed whose duty it is to enforce attention to those rules, or laws. In other words, a government is established.t * Political economy "shows mankind accumulating wealth, and employing this wealth in the production of other wealth; sanctioning by mutual agreement the institution of property; establishing laws to prevent individuals from encroaching on the property of others by force or fraud; adopting various contrivances for increasing the productiveness of their labour; settling the division of the produce by agreement, under the influence of competition, &c."—London and Westminster Review, October, 1836. Among the contrivances for increasing the productiveness of labour, the most important is that which gives security and enables each man to devote his time and attention to the production of the commodities necessary for his subsistence. + The emigrants to New England, upon their arrival, united in the following agreement for the establishment of a government: “In the name of God, amen! We whose names are underwritten, the loyal subjects of our dread sovereign lord, King James, &c., &c., having undertaken for the glory of God, and advancement of the Christian faith, and the honour of our king and country, a voyage to plant the first colony in the northern parts of Virginia: Do by these presents, solemnly and mutually, in the presence of God and one another, covenant and combine ourselves together into a civil body politic, for our better ordering and preservation, and furtherance of the ends aforesaid; and by virtue hereof to enact, constitute, and frame such just and equal laws, ordinances, acts, constitutions, and officers, from time to time, as shall be thought meet and convenient for the general good of the colony: unto which we promise all due submission and obedience, &c."-New England Memorial, p. 37. A similar case is to be found, at the present day, west of the Mississippi. Upon lands belonging to the United States, not yet surveyed or offered for sale, are numerous bodies of people who have occupied them with the intention of purchasing when they shall be brought into the market. These persons are called squatters, and it is not to be supposed that they consist of the élite of the emigrants to the west; yet we are informed that they have organized a govern. ment for themselves, and regularly elect magistrates to attend to the execution of the laws. They appear, in this respect, to be worthy descendants of the pilgrims. |