PRE FACE. CHE Delegates of the Clarendon Press, having detered on issuing a series of manuals intended for cational purposes, have entrusted me with the duty applying a short treatise on Political Economy. The ral topics discussed in this little work have formed material for certain courses of lectures which I have 7 during some years in London and Oxford, though are presented in the following pages in a condensed , many historical and statistical illustrations being ced. These illustrations, which should be supplied ne teacher, are of the utmost importance in the study e science, for just as the historian who is ignorant e interpretations of political economy is constantly d in a medley of unconnected and unintelligible so the economist who disdains the inductions of -y is sure to utter fallacies. Much of the merit of Smith's great work is derived from the steady use this philosopher made of history and statistics, h in his time the former was uncritical, the latter inexact. There is I believe reason to differ from some of the views generally entertained by economists on the subjects of Population, Rent, Wages, Profit, and one or two other cognate terms. My reader will be able to judge whether I have succeeded in substantiating the conclusions at which I have arrived on those topics. The ordinary theory of Rent is not historically supported by the facts which it has assumed, and the theory of Population is closely connected with that of Rent. It is unnecessary that I should comment on the importance of exactly demonstrating all such social laws as the economist attempts to collect. Errors in such inferences are always more mischievous than any other fallacies; most mischievous when the social system of any country is in course of reconstruction, and at a time when the people whose institutions are being remodelled are slow to accept the rule of the great French economist, Tous les intérêts légitimes sont harmoniques. JAMES E. THOROLD ROGERS. OXFORD, March 11, 1868. CONTENTS. PAGE Mutual services the basis of civilization Particular services only expounded by economists Acts of exchange imply reciprocal benefits Some articles have no economical value What articles have this value. Labour the cause of value Labour not necessarily disagreeable Expedients by which labour is economized. Tools and implements Co-operation of labour. Division of labour. Effects of this division. Dexterity of the workman Unnecessary divisions of labour Equalization of the price of commodities 13 14 14 15 16 17 Variation in the values of different articles at different periods No general rise or fall in values possible Difference between value and price A common measure of value necessary . Errors which have arisen from misinterpreting the functions of Variations in the relative value of gold and silver Inconveniences of a double currency Other conditions of a measure of value Reasons why people take money . But they take it in order to use it Communities use as little money as they possibly can Economies of money. Bills of exchange Quantities which a banker can venture on issuing . The Distribution of the Price of Products. 47–53. Many contribute to an object, and each receives a portion of its price 47 49 That which is saved is capital, in whatever form it may be rendered useful 50 Wages, what they are 50 Profit, what it strictly is 51 Rent the residue of the price when wages and profit are satisfied 52 CHAPTER VI. Capital. 53–61. The meaning and origin of capital The employment of capital Relations of capital and labour Profit of capital Accumulation of capital Errors made by labourers and capitalists Credit not capital, except metaphorically 53 54 55 56 57 58 61 CHAPTER VII. Labour and Wages. 62-67. Wages of labour determined by certain causes Adult labour an investment of capital Food of the labourer relevant to his rate of wages . Capital invested in labour must be replaced Labour be understood in a generic sense 62 63 64 65 66 |
