Elements of political economy

Front matter

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Chapter I. On The History Of The Science

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A. Definition of the science, 1

B. Its Basis and mode of Development, .... 1

C. Its History, 2

a. Oriental ti-affic. Abraham 2

6. Greek opinion. Xenophon, Plato, Aristotle. . 3

c. Roman opinion. Cicero, Cato. .... 6

d. Mddle-age opinion. The monks and universities, . 7

e. The BulUon Theory, and the policy that sprung from it, 8 /. The Mercantile System, and its devices, . . .11 g. Recoil from the Mercantile System towards freedom, 15

(1) English contributions. North, Hume, Smith, Ri-

cardo. Mill 17

(2) French contributions. Quesnay, Say, Bastiat. 19

(3) Italian and German writers, .... 21

(4) American contributions. Rae, Carey. . • 21

CHAPTER 11.

ON THE FIELD OF THE SCIENCE.

A. Political Economy distinct from Moral Science, . . 23

B. It is a political, that is, a social science, . . . .25

a. Without society no exchange, .... 26

b. Without exchange no value, 26

c. Without value no science of value, ... 26

d. Man in isolation weak, in society strong, . . .27

C. Some leading definitions of the science, . • . < 28

Viii ANALYSIS OF CHAPTERS.

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D. The word wealth useless as a scientific term, . . .29 a. First reason of the slow progress of the science, . 29

E. Archbishop Whately's definition, 31

a. Second reason of slow progress, . . . . 31

Chapter III. On Value

A. Value not an independent quality of anything, . . 35

B. But a relation of mutual purchase between two things, 35

C. Origin of Value in an exchange of efforts, . . .37

D. Desires, efforts, satisfactions, the circle of Political Econ-

E. The simplest case of Value includes all others, . . 40

F. No essential difference between services and commodities, 41

G. This definition of Value final, with manifold advantages, 42 a. It covers completely hitherto anomalous cases of value, 45 J. Remarkable aptness of the word Service for a scientific

use, 45

c. Ultimate analysis of the phenomenon of Value, . 47

d. The definition expands PoUtical Economy to its just

limits, 48

e. Frees the discussion from previous perplexities, . . 50

(1) From the notion that value consists in matter, 51

(2) From some obstinate illusions of language, . 54

(3) From a mischievous confusion of utility with value, 55 H. Value a different thing from Price, .... 59

I. No perfect measure of value attainable, . . . .63

J, Limitations of value in the two elements of efforts, . 64 K. Limitations In the two elements of desires, . . .66

L. Equation of Supply and Demand, .... 68

M. Every rise or fall of demand tends to check Itself, . . 70

a. Through a consequent rise or fall of value, . . 70

1). Through action on sujDply, 7]

N. Three classes of services in the law of their value, . 71 a. Those which can be increased without increased diflS.-

culty, 73

h. Those Increased only through Increased difficulty, . 72

o. Those which cannot be Increased at all, ... 72

ANALYSIS OF CHAPTERS. IX

Chapter IV. On Exchange

PAGE

A. Principles of human nature involved in exchange, . 74

B. Society a hive of buyers and sellers, . . . .75

C. God's will as indicated in diversity of natural gifts, . 76

D. Association and Individuality, . . . . .77

E. Interest the sole motor in exchange, . . . . 77

F. All exchange depends on diversity of relative advantage, 80

G. The greater the difference of relative advantage the more

profitable do exchanges become, .... 80 H. Freedom, association, and invention, essential to just diversity, 80

I. The right to free exchange a natural right, . . .81 J. Governments formerly unwarrantably interfered with this

right, 81

K. But latterly have mostly conceded it within home boundaries, 83

L. Opposed to free exchange are Monopolies, . . .84 a. Arbitrary prohibitions on the sale of home services, 85 6. Arbitrary prohibitory duties on the admission of foreign services, ........ 85

c. Patents and copyrights are unobjectionable monop-

ohes, 87

Chapter V. On Production

A. Definition of Production and Producers, ... 89

B. The beneficent law of production this, that Nature works

gratuitously in the service of man, .... 90

C. The effect on values of Nature's help in production, . 93

D. A general glut of products impossible, .... 95

E. Advantages of the Division of Labor, ... 98

a. Improved corporeal and intellectual dexterity, . 99

b. The saving of time, 99

c. The invention of machinery, 99

d. The more economical distribution of labor, . . 100

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. 100

. 100

. 101

. 101

. 102

X ANALYSIS OF CHAPTERS.

e. A less waste of material, .... /. A saving in tools, ....

F. Disadvantages of the Division of Labor, a. Monotonous work becomes irksome, &. A tendency to dwarf the powers, c. An undue dependence of the workmen,

G. Limitations to the Division of Labor, . a. From the extent of the market, . 1). From the nature of the employment,

Chapter VI. On Labor

A. Physical labor consists in moving things, . . . 104

B. Men have sought and found helps in this, . . . 104

a. The domestic animals, 104

b. The water-wheel and wind-mill, . . . .105

c. Steam, 105

C. To apply these capital is needed, 106

D. The three requisites of material production, Labor, Power-

agents, Capital, 106

E. The definition of Labor, 106

F. The remuneration of Labor, 107

a. The wages of skilled labor depend :

(1) On the general action of supply and demand, 108 &. Are higher than the wages of common labor, . .108

(1) From the scarcity of appropriate original gifts, 109

(2) From the lack of the requisite industry, . 109

(3) Or of the means of suitable education and trainc. Principles varying all wages, mainly through supply, 110

(1) Agreeableness or disagreeableness of the employ-

(2) The easiness and cheapness of learning them, . Ill

(3) The constancy of employment in them, . 113

(4) The amount of trust involved, . , . .113

(5) The probability of success, . . . . 115

(6) Custom, prejudice, and fashion, . . . 116

(7) Legal restrictions and voluntary associations, 117

AI^ALYSIS OF CHAPTERS. XI

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d. Principles determining wages through demand, . 119

(1) The presence of capital is a demand for labor, 119

(2) The more of capital the stronger the demand, 119

(3) Capital a dividend, number of laborers a divisor,

and the quotient will express in general the

rate of wages, 121

e. Popular remedies for low wages ineffectual, . .122

(1) Government can not directly raise them, • 123

(2) But may indirectly act beneficially upon them, 124

(3) Public opinion may act usefully in some direc-

(4) No legal restraints on population needful, . 126

(5) Strikes are false in theory and pernicious in

practice, 128

CHAPTER Vn.

ON CAPITAL.

A. Definition of Capital, 133

B. How capital arises, 135

C. The remuneration of Capital, or Profits, . . . 137

a. Profits are the reward of abstinence, . . . 138

b. And are just as legitimate as wages, . * . 139

D. The law of distribution between Capital and Labor, . 141 a. Labor is dii-ectly interested in the success of capital, 143 6. Capitalequally interested in the prosperity of laborers, 143

c. Increase of capital redounds more to the benefit of

laborers as a class than to capitalists as a class, . 144

E. Capital is either circulating or fixed, . . . 146

CHAPTER Vin.

ox LAND.

A. The Talue of Land and the rent of Land not anomalous, 150

B. The whole earth given to men gratuitously of God, . 150 a. Till labor has been bestowed on them, or in reference

to them, lands are valueless, . . . . 153 6. What is sold in land is not the inherent qualities of

the soil, but the improvements of man, . .153 xii AlifALYSIS OF CHAPTERS.

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c. God's gifts to the race not interceptible by one gen-

eration, 153

d. History here confirms the deductions of reason, . 153

C. Lands are subject to the law of diminishing return, . 155

a. Through this law the whole earth has been gradually

occupied, 156

b. Mr. Carey fails to break down this law, . . . 157

D. Diminishing returns retarded by improvements in agri-

culture, 158

E. Rent of land the measure of the service rendered by the a. Ricardo's theory too mechanical and rigid, . .159

b. Rent partakes of the nature of both wages and profits, 160

F. Approximately equal division of lands, and the tenure in

fee simple, the best for production, . . . 161

a. Beneficial operation of the fee simple, . . . 162

b. Free trade in lands, and the consequent natural

division best, 162

(1) Because efficient motives are brought to bear

more universally, ...... 163

(2) Because there is more of personal supervision, 163

(3) Because the masses are thereby educated and

energized, 163

(4) Because it contributes to the national strength, 163

(5) Illustrations from England and France, . . 164

CHAPTER IX.

ON COST OP PROBTJCTION.

A. Foresight an important matter in the sphere of ex-

change, 167

B. Cost of production one element from which value springs, 167

C. Cost of production made up. of cost of labor and cost of

capital, 170

a. Cost of labor is made up of three things :

(1) Efficiency of the labor, . . . . 170

(2) The nominal rate of wages, . . . .170

(3) The cost of that in which labor is paid, . 1 70

ANALYSIS OF CHAPTERS. XUl

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b. Diversity of nominal wages does not prove a diver-

sity in the cost of labor, . . . . .171

c. The terms high and low wages ambiguous, . . 173

(1) Meaning sometimes money wages, . . .173

(2) Sometimes real wages, 173

(3) Sometimes relative wages, . . . .173

d. Profits the leavings of cost of labor, . . . 1 75

e. Cost of capital analyzable into three variables, . 1 76

(1) The rate per cent., 176

(2) The time for which the capital is advanced, . 176

(3) The slow or rapid deterioration of that fonai of

capital, 176

D. An enhanced cost of labor will exhibit itself in lower

profits, 179

E. A general and uniform rise or fall of wages will not

aflfect value, 179

F. A partial or unequal rise or fall will affect it, . .179

G. The same, mutatis mutandis, is true of profits, . . 180 H. The amount and durabilit)' of machinery an important

element in cost of production, .... 180

I. Machinery is not injurious to the wages of labor, . . 184

a. Because labor is required to make, repair, and work it, 184

b. Because it makes a broader market, and hence a

stronger demand for products, . . . . 185

c. Because it cheapens products used by the laborers, 185 J. Manufactured articles tend to decline in' value as compared with food and raw materials, . . . .185

CHAPTER X.

ox MOXEY.

A. Money was devised by men, and hence comprehensible by

them, 188

B. Barter is inconvenient, and sometimes impossible, . 189

C. Money is a generalized purchasing-power, . . 192

D. It is a medium of exchange, 193

a. It is a small relative part of the values of any country, 194 xiv ANALYSIS OF CHAPTERS.

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J. Its first function is to help exchange those values, . 195

c. It stimulates to exchanges which would not otherwise

be made, 197

d. It is a generalized form of capital, • . . .197

e. The amount needed determined by its nature as a

/. Kapidity of circulation important in this connection, 200

E. Money is a measure of value, 201

a. Importance of some units of measure in this field, 202

b. Difi'erence between a medium and a measure, . 203

c. Other tables of denominations fixed and absolute, . 204

d. Money denominations variable, .... 206

e. A measure should be as little as possible hable to

F. Gold and silver constitute the best money, . . 209 a. On account of their comparatively steady value, . 210 h. The reasons why their value is so steady, . . 212

(1) On account of a comparatively steady demand, 212

(2) On account of a tolerably uniform cost of pro-

duction, 213

(3) On account of their quantity, .... 214

(4) On account of their fluency, . . . 216

(5) Because every i-ise or fall of their value tends to

check itself, 219

(6) Because a temporarily increased demand is neatly

met by increased rapidity of circulation, . 220

c. They are the best money, secondly, because they are

self-regulating, 221

(1) Difficulty in a double standard, . . . 223

(2) Possibility of a universal coinage, . . . 227

d. Thirdly, because they are conveniently portable,

divisible, and impressible, 233

G. An inferior money drives a superior out, . . . 235

a. Dutch illustration, 237

6. English illustration, 239

c. American illustrations, . , . . . 242

H. A paper money is only tolerable when instantly convertible, 246

a. A paper money is credit money, . . . .247

ANALYSIS OF CHAPTERS. XV

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6. It cannot in its very nature well perform the functions of money, ...... 249

c. The French assignats, 251

d. American bills of credit, 254

e. The legal-tender notes, ...... 255

f. The State-bank currency, 257

g. The currency of the new national banks, . .259 h. The currency of the Bank of England, . . 261

I. Gold and silver are an economical money, . . . 265 J. Interest on money is legitimate, and its rate should be

free, 266

,a. Usury laws are anomalous, 266

b. They are always disobeyed, 272

c. It would be worse if they were obeyed, . . .273

CHAPTER XI.

ON CURRENCY IN THE UNITED STATES.

A. The colonial currency, 278

B. The continental currency, 280

C. The Bank of North America, 284

D. The first Bank of the United States, . . . .289

E. The second Bank of the United States, . . . 292

F. The State banks, 295

G. The coins, 296

H. The national banking system of 1863, .... 307

CHAPTER XII.

ON CREDIT.

A. Credit is an exchange in which the return service is

delayed, 314

B. The forms of credit are various, ..... 315

a. Book-accounts, 315

6. Promissory-notes, 316

(1) Those of individuals and corporations, . 317

(2) Those of governments, 318 xvi ANALYSIS OF CHAPTEES.

PAGE

c. Bills of exchange, 319

(1) The par of exchange, 322

(2) How restored by natural laws, . . . 323

d. Checks, 325

(1) The clearing-house system, .... 326

C. The advantages of credit, 326

a. In transferring capital from less to more productive

hands, 326

(1) To industrious men who have no capital, . .329

(2) Through banks, 330

(3) Through savings-banks, .... 330

(4) Through life insurance companies, . . 330 &. In economizing the general operations of exchange, 332

D. The disadvantages of credit, 333

a. " Long sales and large profits." " Quick sales and h. It tends to raise prices, 334

E. The general cause of commercial crises, . . .337

a. The crisis of 1837, 338

I. The crisis of 1847, 342

CHAPTER Xm.

ON FOREIGN TRADE.

A. There are no principles peculiar to foreign trade, . 347

B. But a separate treatment is needful, .... 347

C. All exchange depends on diversity of relative advan-

tage, 348

D. National diversities are of God's ordination, . . . 350

E. Relative cost of production — arithmetical illustration, 351

F. The equation of international demand, . . . 359

G. The word " compete " Irrelevant in this connecticJn, . 360 H. EflFect on trade of enhanced facilities for production In

either country, . . . . . . . 361

I. The costs of carriage, 363

a. Each nation does not necessarily pay its own, . 364 6. That will depend upon the new International demand, 364

ANALYSIS OF CHAPTERS. XVll

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J. Political Economy demands a free commerce, . . 366

K. The old Mercantile System gave birth to restrictions, . 366

L. Objections to free trade answered, . . . . 373

a. A revenue tariff not opposed to free trade, . .373

b. A theory? 373

c. Does it diminish wages ? ...... 375

d. Why so many men believe in restriction, . . 379

e. Would manufactures suffer from freedom ? . . 381 /. Would the country become purely agricultural ? . 384 g. Is there any fundamental difference between commerce and trade ? 388

h. Mr. Bigelow's views, . . . . . .392

i. Every nation ought to be independent, . . 402

M. The voice of experience on free trade, . . . 404

a. The English example, ...... 405

6. The German example, 407

CHAPTER XIV.

ON THE MERCANTILE SYSTEM.

A. Fundamental principles of the Mercantile System, . 410

B. The national policy that sprung from it, . . .411

a. Its first device, prohibitions, 414

b. Its second device, restrictions for protection, . .417

c. Its third device, bounties, ..... 420

d. Its fourth device, colonies, . . . . .421

CHAPTER XV.

ON AMERICAN TARIFFS.

A. England's policy towards the American Colonies, . 422

a. The "Navigation Act," 423

b. Prohibitions on manufactures, .... 425

c. Considerations condemning the colonial policy, . 427

B. Want of power to regulate commerce under the Con-

C. The Tariff's under the Constitution, • . . . 429 a. The "Hamilton Tariff" of 1789, . ... 429

(1) Its low duties, 429

b xviii ANALYSIS OF CHAPTERS.

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(2) Its steady revenue, 430

(3) Its principles of tonnage and protection, . . 431.

b. The "Calhoun Tariff" of 1816, . ... 431

(1) Unfortunate connection of tariffs with politics, 432

(2) The restrictive system fairly entered upon, . 432

c. The "Clay Tariff" of 1824, 432

(1) Higher duties, 433

(2) Pi'otected interests not satisfied, . . . 433 d The "Tariff of abominations" of 1828, . . 433

(1) Protection had become unpopular, . . . 433

(2) Daniel Webster first votes for protection, . 433 e. The " Compromise Tariff" of 1833, • . .434

(1) Presidential canvass hostile to protection, . 434

(2) The sliding scale of lower duties, . . . 434 /. The "Whig Tariff" of 1842, .... 434

(1) Average of duties about fifty per cent., . . 434

(2) Factitious character of the industry stimulated, 434 g. The " Walker Tariff" of 1846, .... 435

(1) Low duties, but discrimination,

(2) Increase of revenue, .... h. The "Tariff of 1857,"

(1) Lower duties, and increase of free list,

(2) Falling off, and rallying of revenue, l The "Morrill Tariff" of 1861, .

(1) Duties too high and complicated,

(2) Free list too large, and not honestly framed,

(3) Revenue too small,

(4) It can not be permanent,

CHAPTER XVL

ON TAXATION.

A. Taxation legitimate on principles of exchange, . . 438

B. The Right of Property is the power to render services, 438

C. Taxes, then, fall properly on exchanges, . . . 439

D. And should be proportionate to them, .... 441

E. Taxes are either direct or indirect, .... 443

a. Direct taxes fell on income or expenditure, . . 444

b. Indirect on imports or services in transition, . 444

ANALYSIS OF CHAPTERS. xix

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c. An income tax unexceptionable in principle, . . 444

d. Taxes on expenditures, special, and hence objection-

able, 445

e. A house-tax, however, less so, 445

/. General advantages and disadvantages of each form, 446

F. Taxes and duties, to be productive should be low, . 446

G. Taxes and duties should be simple, . . . .447 H. They should be collected only just before disbursement, 448

I. Poorer citizens should be mostly or wholly exempted

from taxes, , 449

ELEMENTS OF POLITICAL ECONOMY.

Chapter I. History Of The Science

Political Economy is the science of exchanges, or, what is exactly equivalent, the science of value. To unfold this science in an orderly manner will require an analysis of those principles of human nature out of which exchanges spring ; an examination of the providential arrangements, physical and social, by which it appears that exchanges were designed by God for the welfare of man ; and an inquiry into those laws and usages devised by men to facilitate or to impede exchanges. The science of value will be soundly based and properly unfolded when its propositions systematically arranged are shown to be deducible from acknowledged principles of human nature, and consonant with the providential structure of the world and of society ; and when, in the light of these propositions, human institutions and laws relating to exchanges are explained and correctly estimated. An attempt to base and to develop the science of value thus will be made in the following pages ; but before that work is fairly entered upon, it will be well to take a preliminary 1

2 ELEJIENTS OF POLITICAL ECONOMY.

glance at the history of the science, and to trace the steps by which successive inquirers have brought Political Economy to its present stage of development.

While labor is as old as the race, and exchanges are as old as society, and while doubtless in all ages individual inquirers have tasked their minds with some portions of the subject. Political Economy as a science can hardly be said to have existed till within a period comparatively recent. Men exchanged among themselves services and commodities, and found their account in exchanging, long before the dawn of authentic history. The first commercial transaction on record dates back about two thousand years before Christ, p was the purchase by Abraham of the cave and field of Machpelah. "And Abraham weighed to Ephron the silver which he had named in the audience of the sons of Heth, four hundred shekels of silver, current money with the merchant." All this implies at that early day fixed conditions of trade. There were merchants as a class. Silver by weight was already a medium of exchange passing from hand to hand. It was current money with the merchant. In the absence of written documents a bargain was made in the presence of living witnesses. It was " in the audience of the sons of Heth, before all that went in at the gate of his city, that the field and the cave were made sure unto Abraham for a possession." An earlier passage in the life of Abraham shows that gold as well as silver was already reckoned an article of merchandise. It is said that Abraham departed from Egypt " very rich in cattle, in silver and gold."

From Abraham's time to the present, traffic has employed a portion of the activity of every people not utterly savage. Nineveh " multiplied her merchants above the stars of heaven." Tyre became "the royal exchange of the world." Athens, Carthage, Alexandria, Venice, Amsterdam, London, and New York, have each in turn not only engaged in domestic exchanges, but also " have ploughed the deep and reaped the harvests of every land ! "

The earliest writer known to us who treated economic subjects at any length is Xenophon. In the first half of the fourth century before Christ this accomplished Athenian published two tracts, one " On the Revenues of Athens," and the other entitled " The Economist." These earliest essays, not indeed on Political Economy, but on some of the subjects with which that science has to do, contain, together with much that is fallacious, some sound and liberal principles. In the first of them Xenophon attempts to point out the modes in which the internal resources of Athens, if properly developed, might be made sufficient to balance her expenditures without the imposition of burdensome taxes. He dwells on the abundance of her natural productions, especially her mineral wealth, and her advantages as an emporium of trade. He suggests various ameliorations in the condition of the laboring classes. He would promote commerce, and augment the income from duties by holding out inducements to foreign ships to frequent the ports of Athens, by a more honorable treatment of merchants, by enlarging the public marts and warehouses, and by otherwise facilitating the transaction of mercantile business. He recommends that the government as such should itself undertake commercial enterprises ; and especially urges that the silver mines of Laurium should be worked on government account and on a better system, admitting however private persons to a share in the capital stock and its returns. In conclusion he dwells on the importance of a durable peace to the success of every measure of national improvement. In the other little book referred to, there is a discussion on the origin, nature, and value of property ; a view of the various parts of domestic economy ; and a pretty full treatment of the subject of agriculture.^

There is nothing else on economical topics in the whole range of Greek literature that approximates in liberality and soundness to these little works of Xenophon. Plato, in his book called the " Republic," correctly sketches one important principle of the science, namely, the necessity man is in, from his multifarious wants, of uniting in extensive societies, in which each individual may be occupied exclusively with one species of production ; but this speculative view is so far from being carried out to its practical application, that he proposes to banish entirely artisans and merchants from his imaginary commonwealth. Aristotle, however, has sometimes been called the father of Political Economy. He was not the father of the thing, but only of the name. He was the first to employ the expression which has ever since been used to designate the science. He wrote a treatise entitled " Economics," on the relation of man towards property ; in which he lays down the doctrine that the bounty of nature is the only true

1 Mure's History of the Greek Literature.

source of wealth, and in which the current prejudices against trading and the interest of money are vehemently maintained. "Interest," he says, "is most reasonably detested." Aristotle, whatever his merits in other directions, can be regarded neither as the founder of, nor a very important contributor to, the science upon which he has the honor of confemng the name.

We should expect beforehand that the more practical Romans, lovers of law and order, and exhibiting to the world many of the high qualities of citizen life, would make some valuable contribution to the science of exchanges. In this we are disappointed. Though in the earlier and better days of Rome, agriculture was highly esteemed, the blighting institution of slavery brought labor, the mechanical arts, and commerce more and more into disrepute. The lands were tilled by slaves. ^ Slaves became the artisans of the country." As always happens under such circumstances, the freemen, the citizens, came to feel themselves above such degrading occupations. It is pitiful to hear Cicero declaim against the noble rights of labor. In the De Officiis there is a whole paragraph of condemnation for those branches of manufacturing and commercial industry which ought to be regarded not only as honorable but as the life and strength of the State. One sweep of his pen pushes out of the pale of respectability the whole class of mechanics. " All artisans are engaged in a degrading profession," says he. Again, " there can be nothing ingenuous in a workshop." Trade and commerce fare no better at his hands. When carried on on a small scale they are to be regarded ^s disgraceful ;

when on a large scale they must not be greatly condemned ! When social prejudices and views of labor like these are promulgated by the foremost man of his time, the best educated and the most liberal, there is no longer room for surprise at the lack of Roman contributions to Political Economy.

Moreover, the Roman moralists regarded the accumulation of wealth as pernicious and subversive of those virtues in which they placed the perfection of character. Luxuries and refinements in the mode of living, which are the result of accumulation, found in them uncompromising foes. Old Cato, the censor, in his severe denunciations of wealth, was but a representative of the whole class of moralists. And this ought not to surprise us for two reasons. The stream of the Roman wealth, as it poured in, proved a curse and not a blessing, not because wealth is not a blessing, but because its waters instead of being diffused everywhere, falling like the rain, giving increased comforts to the poor, and adding to every man's enjoyment, rushed at once into a few huge reservoirs. There was no natural distribution. The source of the wealth too was as illegitimate as its consumption. It did not come from the peaceful and gradual development of the national resources. Instead of engaging in agriculture and raising grain or other products of land, instead of building mills and manufacturing useful articles, or by any other class of efforts producing something for exchange, it was the Roman method to conquer rich lands, and then subject the inhabitants to interminable tolls and taxes, and thus endeavor to grow rich from the spoils of the industry, of others. A comprehensive theory of value will hardly be reached, or be helped forward, in connection with such views of labor and such moral notions as the Romans entertained.

During the Middle Ages, when most of the universities of Europe were founded, the monopoly of knowledge was possessed by the Catholic clergy, and to them was naturally intrusted the regulation of the universities, and the establishing their courses of study. The course of study appointed was as meagre and scanty as the personal culture of the priests. If any one had suggested to those cadaverous and sometimes rope-begirded monks, that they should appoint a teacher to inquire into the nature of value, the laws of property, and the principles of commerce, they would have held up their hands in pious hoiTor! The prejudices against labor and manufactures and commerce were still strong. The monkish ideas that contact with the world, with its practical questions and concerns, was contaminating, was beneath the dignity of the scholar, and altogether unworthy of the Christian, was slow to loose its hold. But the world moves on. The time came when men got. a glimpse of the truth that the end of knowledge and science is a practical end, that their utility consists in their power to improve the condition of mankind, and that it is quite as worthy the attention of a rational human being to inquire how poverty may be prevented, the wants of the masses of mankind met, and the sum of human happiness increased, as to spend wearisome days and nights in following the intricacies of disputatious schoolmen, and arriving at last through mazes of metaphysical distinctions at results about as satisfactory as the schoolmen actually reached after a long controversy in the case of the question, " In what consists personal identity? " or, more specifically, " What was it that made Peter Peter and not John, and John John and not Peter?" namely, " that John's identity consisted in his Johnity, and Peter's identity consisted in his Petricity or Peterness ! "