Page images
PDF
EPUB

nature, to tell us what phenomena are found together, what effects follow from what causes. Does it result from this that the physical sciences are without bearing on the practical concerns of mankind? I think I need not trouble myself to answer that question. Well, then, Political Economy is a science in the same sense in which Astronomy, Dynamics, Chemistry, Physiology, are sciences. Its subject-matter is different; it deals with the phenomena of wealth, while they deal with the phenomena of the physical universe; but its methods, its aims, the character of its conclusions, are the same as theirs. What Astronomy does for the phenomena of the heavenly bodies; what Dynamics does for the phenomena of motion; what Chemistry does for the phenomena of chemical combination; what Physiology does for the phenomena of the functions of organic life; that Political Economy does for the phenomena of wealth: it expounds the laws according to which those phenomena co-exist with or succeed each other; that is to say, it expounds the laws of the phenomena of wealth.

"Let me here briefly explain what I mean by this expression. It is one in very frequent use; but, like many other expressions in frequent use, it does not always perhaps carry to the mind of the hearer a very definite idea. Of course I do not mean by the laws of the phenomena of wealth, Acts of Parliament. mean the natural laws of those phenomena. Now what are the phenomena of wealth? Simply the facts of wealth; such facts as production, exchange, price; or, again, the various forms which wealth

[ocr errors]
[ocr errors]

assumes in the process of distribution, such as wages, profits, rent, interest, and so forth. These are the phenomena of wealth; and the natural laws of these phenomena are certain constant relations in which they stand towards each other and towards their causes. For example, capital grows from year to year in this country at a certain rate of progress; in the United States the rate is considerably more rapid; in China considerably slower. Now these facts are not fortuitous, but the natural result of causes; of such causes as the external physical circumstances of the countries in question, the intelligence and moral character of the people inhabiting them, and their political and social institutions; and so long as the causes remain the same, the results will remain the same. Similarly, the prices of commodities, the rent of land, the rates of wages, profits, and interest, differ in different countries; but here again, not at random. The particular forms which these phenomena assume are no more matters of chance than the temperature or the mineral productions of the countries in which they occur are matters of chance; or than the fauna and flora which flourish on the surface of those countries are matters of chance. Alike in the case of the physical and of the economic world, the facts we find existing are the results of causes, between which and them the connection is constant and invariable. It is, then, the constant relations exhibited in economic phenomena that we have in view, when we speak of the laws of the phenomena of wealth; and in the exposition of these

laws consists the science of Political Economy. If you ask me wherein lies the utility of such an exposition of economic laws, I answer, in precisely the same circumstance which constitutes the utility of all scientific knowledge. It teaches us the conditions of our power in relation to the facts of economic existence, the means by which, in the domain of material wellbeing, to attain our ends. It is by such knowledge that man becomes the minister and interpreter of Nature, and learns to control Nature by obeying her.

"And now I beg you to observe what follows from this mode of conceiving our study. In the first place, then, you will remark that, as thus conceived, Political Economy stands apart from all particular systems of social or industrial existence. It has nothing to do with laissez-faire any more than with communism; with freedom of contract any more than with paternal government, or with systems of status. It stands apart from all particular systems, and is, moreover, absolutely neutral as between all. Not of course that the knowledge which it gives may not be employed to recommend some and to discredit others. This is inevitable, and is only the proper and legitimate use of economic knowledge. But this notwithstanding, the science is neutral, as between social schemes, in this important sense. It pronounces no judgment on the worthiness or desirableness of the ends aimed at in such systems. It tells us what their effects will be as regards a specific class of facts, thus contributing data towards the formation of a sound opinion respecting them. But here its function ends.

The data thus furnished may indeed go far to determine our judgment, but they do not necessarily, and should not in practice always, do so. For there are few practical problems which do not present other aspects than the purely economical-political, moral, educational, artistic aspects-and these may involve consequences so weighty as to turn the scale against purely economic solutions. On the relative importance of such conflicting considerations, Political Economy offers no opinion, pronounces no judgment, thus, as I said, standing neutral between competing social schemes; neutral, as the science of Mechanics stands neutral between competing plans of railway construction, in which expense, for instance, as well as mechanical efficiency, is to be considered; neutral, as Chemistry stands neutral between competing plans of sanitary improvement; as Physiology stands neutral between opposing systems of medicine. It supplies the means, or, more correctly, a portion of the means for estimating all; it refuses to identify itself with any.

"Now I desire to call particular attention to this characteristic of economic science, because I do not think it is at all generally appreciated, and because some serious and indeed lamentable consequences have arisen from overlooking it. For example, it is sometimes supposed that because Political Economy comprises in its expositions theories of wages, profits, and rent, the science is therefore committed to the approval of our present mode of industrial life, under which three distinct classes, labourers, capitalists, and landlords, receive remuneration in those forms.

Under this impression, some social reformers, whose ideal of industrial life involves a modification of our existing system, have thought themselves called upon to denounce and deride economic science, as forsooth seeking to stereotype the existing forms of industrial life, and of course therefore opposed to their views. But this is a complete mistake. Economic science has no more connection with our present industrial system than the science of mechanics has with our present system of railways. Our existing railway lines have been laid down according to the best extant mechanical knowledge; but we do not think it necessary on this account, as a preliminary to improving our railways, to denounce mechanical science. If wages, profits, and rent find a place in economic theories, this is simply because these are the forms which the distribution of wealth assumes as society is now constituted. They are phenomena which need to be explained. But it comes equally within the province of the economist to exhibit the working of any proposed modification of this system, and to set forth the operation of the laws of production and distribution under such new conditions.

And, in connection with this point, I may make this remark: that, so far is it from being true, as some would seem to suppose, that economic science has done its work, and thus become obsolete for practical purposes, an object of mere historical curiosity, it belongs, on the contrary, to a class of sciences whose work can never be completed, never at least so long as human beings continue to progress; for the most important portion

« PreviousContinue »