CONTENTS.

INTRODUCTION.

DEFINITION of Political Economy-Wealth-Money-Free trade—

The mercantile system
PAGES I-4

SECTION I. Production of Wealth.

The three requisites of production—Land, Labour and Capital................5

CHAPTER I. On Land.

The service which land renders to production-Circumstances

which increase the productiveness of land-Large and small

farming...

CHAPTER II. On Labour.

.5-9

The service which labour renders to production-productive and

unproductive labour-Division of labour-Free trade a division of

labour-Co-operation of labour-Simple and complex co-operation

-Wakefield's theory of colonization-Moral and material means

of increasing the productiveness of labour-Productive and un-

productive consumption-Bastiat's illustration.....
.9-23

CHAPTER III. On Capital.

The service which capital renders to production-Mr Henry George

on wages-The wages-fund-A demand for commodities not a

demand for labour-Capital in order to fulfil its functions must be

consumed—Fixed and circulating capital-The unemployed and

labour saving machinery-Circumstances which favour the accu-

mulation of capital--A glut of capital....... ........PAGES 23-37

SECTION II. The Exchange of Wealth.

Exchange implies the existence of private property-Socialism—

Its economic defects compared with the economic defects of

the present industrial organisation
.38-42

CHAPTER I. Value and Price.

Definition of Value-Barter-Definition of Price-There can never

be a general rise in values; there may be a general rise in

prices
.42-45

CHAPTER II. On Money.

The functions of Money-Various substances used as money—

The qualities which the substance selected as money should

possess Gold and Silver combine all these qualities in a greater

degree than any other substances that have ever been used as

money-Standard coins and token coins-Bimetalism-A double

standard of value.......................

.45-56

CHAPTER III. The Value of Commodities.

The three classes into which commodities are divided in relation to

their value-Mill and Cairnes on cost of production-The effect

of demand and supply on prices-Circumstances which determine

the price of an article the supply of which cannot be increased-

Every article which has an exchange value is characterised by two

qualities, viz. value in use and difficulty of attainment-Circum-

stances which determine the price of agricultural produce-The

growth of population tends to increase the price of agricultural

produce-Counteracting circumstances-Circumstances which de-

termine the price of manufactured commodities-The elements of

cost of production-Cost of labour to the capitalist depends on its

efficiency, and does not always vary with the amount given as

wages-The relation between profits and prices-A summary of

the effect of demand and supply on prices ..PAGES 56-77

CHAPTER IV. On the Value of Money.

The Value of money is regulated by the same laws as those which

determine the value of other mineral produce-The recent

depreciation of silver-Circumstances which influence the demand

for gold and silver-The effect of the gold discoveries on the

value of money....

.78-89

SECTION III. The Distribution of Wealth.

Wealth is divided into rent, wages and profits-In different countries

these different portions are owned by different combinations of

persons..

.90-91

CHAPTER I. The Rent of Land.

A definition of Rent-Rent as regulated by competition- Ricardo's

theory of Rent-The margin of cultivation-The effect of increased

population on the position in the scale of productiveness of the

margin of cultivation-Population not a measure of national

prosperity-Rent does not increase the price of agricultural

produce-Rent as regulated by custom-Metayers—The Ulster

tenant-right-The Irish Land Acts of 1870, 1881 and 1887

-The cottier and conacre tenancies of Ireland ....
...91—106

...........

CHAPTER II. The Wages of Labour.

Wages as regulated by competition-The influence of population on

wages-Malthus on Population-Emigration an insufficient remedy

for over-population-The effect on wages of a local decline

in profits—The effect on wages of increased efficiency of labour—

High prices do not produce high wages—The effect of free

competition on wages-Charitable donations and poor-law relief

frequently check the operation of competition-Competition was

till lately almost inoperative among agricultural labourers and is

still only very partially operative among women-Adam Smith's

five causes which produce different rates of wages in different

employments
.PAGES 106-128

CHAPTER III. On the Profits of Capital.

The profits of capital are necessary and justifiable-Profits consist of

three elements, viz. interest on capital, compensation for risk, and

wages of superintendence-The rate of interest the same in

all trades in the same country and at the same time-The rate of

interest declines with the increase of population-Law of diminish-

ing productiveness-High prices do not always denote large profits

—Profits mainly depend on share of the total wealth jointly pro-

duced by capital and labour, which is apportioned to labour-

Cost of labour to the capitalist a function of three variables-

Workmen do not benefit by a rise in wages which causes their

employers' profits to sink below the ordinary rate-The export of

capital
..129-141

CHAPTER IV. On Trades' Unions, Strikes, and Co-operative

Societies.

The functions of Trades' Unions-Strikes-Combinations of

employers-Lock-outs-Strikes are caused by hostility between

employers and employed —Co-operation, co-partnership and profit-

sharing remove this hostility and therefore prevent strikes-

Co-partnership in France-The Familistère at Guise—The Maison

Leclaire Agricultural co-operation-Co-partnership in England

-Boards of arbitration-Co-operative stores.....

.142-156

SECTION IV. On Foreign Commerce, Credit and

Taxation.

CHAPTER I. On Foreign Commerce.

Foreign commerce is a development of the principle of division of

labour-Protection is disastrous to the general interests of the

community-The effect of protection on wages-The French

and English sugar-refiners—The Candlemakers' petition-Foreign

trade advantageous to both countries only when the relative value

of the commodities exchanged is different in each country-The

terms of the exchange are regulated by an equalisation of demand

and supply-Reciprocity-When there is an exchange between
two countries, the profit of each country is in inverse ratio with its
demand for the imported goods-Protection in America-Decline
of shipping in that country-Exports and imports tend to an
equality-Cost of carriage-"Balance of trade"-" Unfavourable
Exchange"
.PAGES 157-181

CHAPTER II. Credit and its Influence on Prices.

Definition of Credit-The meaning of the expressions "good or bad

credit"-Credit is not capital-The manner in which credit

promotes the productive employment of wealth-Banks-Joint-

stock companies—Bills of Exchange-Bill-discounting-Bills of

exchange perform many of the functions of money-Bank notes-

Cheques-The Clearing-house-Book credits-Credit influences

prices, not the particular form which credit assumes-The

purchasing power conferred by credit-Credit produces the

greatest effect on the prices of those commodities whose supply is

limited-Commercial panics-The Bank Charter Act of 1844-

Convertible and inconvertible paper currency-The Gold Ring of

New York-The influence of credit on general prices is beneficial

-The direct economy of a paper currency.

.181-202