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civil justice, are a second burthen rendered necessary by the first. The exorbitantly-paid profession of lawyers, so far as their work is not created by defects in the law of their own contriving, are required and supported principally by the dishonesty of mankind. As the standard of integrity in a community rises higher, all these expenses become less. But this positive saving would be far outweighed by the immense increase in the produce of all kinds of labour, and saving of time and expenditure, which would be obtained if the labourers honestly performed what they undertake; and by the increased spirit, the feeling of power and confidence, with which works of all Borts would be planned and carried on by those who felt that all whose aid was required would do their part faithfully according to their contracts. Conjoint action is possible just in proportion as human beings can rely 0:1 each other. There are countries in Europe, of first-rate industrial capabilities, where the most serious impediment to conducting business concerns on a large scale, is the rarity of persons who are supposed fit to be trusted with the receipt and expenditure of large sums of money. There are nations whose commodities are looked shily upon by merchants, because they cannot depend on finding the quality of the article conformable to that of the sample. Such short-sighted frauds are far from unexampled in English exports. Every one has heard of "devil's dust:'' and among other instances given by Mr. Balibage, is one in which a branch of export trade was for a long time actually stopped by the forgeries and frauds which had occurred in it. On the other hand the substantial advantage derived in business transactions from proved trustworthiness, is not less remarkably exemplified in the same work. "At one of our largest towns, sales and purchases on a very extensive scale are made daily in the course of business without any of the parties ever exchanging a written document." Spread over a year's transactions, how great a return, in saving of time, trouble, and expense, is brought in to

the producers and dealers of snch a town from their own integrity. "The influence of established character in producing confidence operated in a very remarkable manner at the time 0! the exclusion of British manufactures from the Continent during the last war. One of our largest establishments had been in the nabit of doing extensive business with a house in the centre of Germany: but on the closing of the Continental ports against our manufactures, heavy penalties were inflicted on all those who contravened the Berlin and Milan decrees. The English manufacturer continued, nevertheless, to receive orders, with directions how to consign them, and appointments for the time and mode of pay ment, in letters, the handwriting of which was known to him, but which were never signed except by the Christian name of one of the firm, and even in some instances they were without any signature at all. These orders were executed, and in no instance was there the least irregularity in the payments."*

* Some minor instances noticed by Mr. Babbage may be cited in further illustration of the waste occasioned to society through the inability of its members to trust one another.

*' The cost to the purchaser is the price he pays for any article, added to the cost of verifying the fact of its having that degree of goodness for which he contracts. In some cases, the goodness of the article is evident on mere inspection; and in those cases there is not much difference of price at different shops. The goodness of loaf sugar, for instance, can be discerned almost at a glance j and the consequence is, that the price is so uniform, and the profit upon it so small, that no grocer is at all anxious to sell it; whilst on the other hand, tea, of which it is exceedingly difficult to judge, and which can be adulterated by mixture so as to deceive the skill even of a practised eye, has a great variety of different prices, and is that article which every grocer is most anxious to sell to his customers. The difficulty and expense of verification are in some instances so great as to justify the deviation from well-established principles. Thus it Is a general maxim that Government can purchase any article at a cheaper rate than that at which they can manufacture it themselves. But it hag, nevertheless, been considered more economical to build extensive flour-mills (such at those at Deptford), and to grind their own corn, than to verify each sack of purchased flour, and to employ persons in devising me

§ 6. Among the secondary causes arhich determine the productiveness of productive agents, the most important is Security. By security I mean the completeness of the protection which society affords to its members. This consists of protection by the government, and protection against the government. The latter is the more important. Where a person known to possess anything worth taking away, can expect nothing but to have it torn from him, with every circumstance of tyrannical violence, by the agents of a capacious government, it is not likely mat many will exert themselves to produce much more than necessaries. This is the acknowledged explanation of the poverty of many fertile tracts of Asia, which were once prosperous and populous. From this to the degree of security enjoyed in the best governed

thods of detecting the new modes of adulteration which might be continually resorted to." A similar want of confidence might deprive a nation, such as the United States, of a large export trade in flour.

Again: "Some years .^ince, a mode of preparing old clover and trefoil seeds by a process called doctoring became so prevalent as to excite the attention of the House of Commons. It appeared in evidence before a Committee, that the old seed of the white clover was doctored by first wetting it slightly, and then drying it by the fumes of burning sulphur; and that the red clover seed had its colour improved by shaking it in a sack with a small quantity of indigo: but this being detected after a time, the doctor* then used a preparation of logwood, fined by a little copperas, and sometimes by verdigris; thus at once improving the appearance of the old seed, and diminishing, if not destroying, its vegetative power, already enfeebled by age. Supposing no injury had resulted to gocjd seed so prepared, it was proved that, from the improved appearance, the market price would be enhanced by this process from five to twenty-five shillings a hundred-weight. But the greatest evil arose from the circumtitance of these processes rendering old and worthless seed equal in appearance to the best One witness had tried some doctored seed, aad found that not above one grain in a hundred grew, and that those which did vegetate died away afterwards: whilst about eighty or ninety per cent of good seed usually grows. The seed Bo treated was sold to retail dealers in the country, who of course endeavoured to purchase at the cheapest rate, and from them it got into the hands of the farmers, neither of these classes being capable of distinguishing the fraudulent from the genuine seed. Many cultivators in consewuence diminished their consumption of the

parts of Europe, there are numerous gradations. In many provinces of France, before the .Revolution, a vicious system of taxation on the land, and still more the absence of redress against the arbitrary exactions which were made under colour of the taxes, rendered it the interest of every cultivator to appear poor, and therefore to cultivate badly. The only insecurity which is altogether paralyzing to the active energies of producers, is that arising from the government, or from persona invested with its authority. Againirt all other depredators there is a hope of defending oneself. Greece and the Greek colonies in the ancient world, Flanders and Italy in the Middle Ages, by no means enjoyed what any one with modern ideas would call security: the state of society was most unsettled and turbulent; person and property

articles, and others were obliged to pay a higher price to those who had skill to distinguish the mixed seed, and who had integrity and character to prevent them from dealing in it."

The same writer states that Irish flax, though in natural quality inferior to none, sells, or did lately sell, in the market at a penny to twopence per pound less than foreign or British flax; part of the difference arising from negligence in its preparation, but part from the cause mentioned in the evidence of Mr. Corry, many years Secretary to the Irish Linen Board: *' The owners of the flax, who are almost always people in the lower classes of life, believe that they can best advance their own interests by imposing on the buyers. Flax being sold by weight, various expedients are used to increase it; and every expedient is injurious, particularly the damping of it; a very common practice, which makes the flax afterwards heat. The inside of every bundle (and the bundles all vary in bulk) is often full of pebbles, or dirt of various kinds, to increase the weight, In this state it is purchased and exported to Great Britain."

It was given in evidence before a Committee of the House of Commons that the lace trade at Nottingham bad greatly laUen off, from the making of fraudulent and bad articles: that " a kind of lace called tingitprets was manufactured," (I still quote Mr. Babbage) " which, although good to the aye, became nearly spoiled in washing by the slipping of the threads; that not one person in a thousand could distinguish the difference between single-press and double-press lace. that even workmen and manufacturer* wart obliged to employ amagnifying-glasslbr that purpose; and that in another similar artlcia called warp-lace, such aid waa essential"

were exposed to a thousand dangers. But they were free countries; they were in general neither arbitrarily oppressed, nor systematically plundered by their governments. Against other enemies the individual energy which their institutions called forth, enabled them to make successful resistance: their labour, therefore, was eminently productive, and their riches, while they remained free, were constantly on the increase. The Roman despotism, putting an end to wars and internal conflicts throughout the empire, relieved the subject population from much of the former insecurity: but because it left them under the grinding yoke of its own rapacity, they became enervated and impoverished, until they were an easy prey to barbarous but free invaders. They would neither fight nor labour, because they were no longer suffered to enjoy that for which they fought and laboured.

Much of the security of person and property in modern nations is the effect of manners and opinion rather than of law. There are, or lately were, countries in Europe where the monarch was nominally absolute, but where, from the restraints imposed by established usage, no subject felt practically in the smallest danger of having his possessions arbitrarily seized or a contribution levied on them by the government There must, however, be in such governments much petty plunder and other tyranny by subordinate agents, for which redress is not obtained, owing to the want of publicity which is the ordinary character of absolute governments. In England the people are tolerably well protected, both by institutions and manners, against the agents of government; but, for the

security they enjoy against other evildoers, they are very little indebted to their institutions. The laws cannot be said to afford protection to property, when they afford it only at such a cost as renders submission to injury in general the better calculation. The security of property in England is owing (except as regards open violence) to opinion, and the fear of exposure, much more than to the direct operation of the law :md the courts of justice.

Independently of all imperfection in the bulwarks which society purposely throws round what it recognises as property, there are various other modes in which defective institutions impede the employment of the productive resources of a country to the best advantage. We shall have occasion lor noticing many of these in the progress of our subject. It is sufficient here to remark, that the efficiency of industry may be expected to be great, in proportion as the fruits of industry are insured to the person exerting it: and that all social arrangements are conducive to useful exertion, according as they provide that the reward of every one for his labour shall be proportioned as much as possible to the benefit which it produces. All laws or usages which favour one class or sort of persons to the disadvantage of others; which chain up the efforts of any part of the community in pursuit of their own good, or stand between those efforts and their natural fruits—are (independently of all other grounds of condemnation) violations of the fundamental principles of economical policy; tending to make the aggregate productive powers of the community productive in a less degree than they would otherwise be.



§ 1. In the enumeration of the . one untouched, which, because of its circumstances which promote the pro- importance, and of the many topics of doctiveness of labour, we have left | discussion which it involves, requires

to be treated apart. This is, co-operation, or the combined action of numbers. Of this great aid to production, a single department, known by the name of Division of Labour, has engaged a large share of the attention of political economists; most deservedly indeed, but to the exclusion of other cases and exemplifications of the same comprehensive law. Mr. Wakefield was, I believe, the first to point out, that a part of the subject had, with injurious effect, been mistaken for the whole; that a more fundamental principle lies beneath that of the division of labour, and comprehends it.

Co-operation, he observes,* is "of two distinct kinds: first, such cooperation as takes place when several persons help each other in the same employment; secondly, such co-operation as takes place when several persons help each other in different employments. These may be termed Simple Co-operation and Complex Co-operation.

"The advantage of simple co-operation is illustrated by the case of two greyhounds running together, which, it is said, will kill more hares than four greyhounds running separately. In a vaBt number of simple operations performed by human exertion, it is quite obvious that two men working together will do more than four, or four times four men, each of whom should work alone. In the lifting of heavy weights, for example, in the felling of trees, in the sawing of timber, in the gathering of much hay or com during a short period of fine weather, in draining a large extent of land during the short season when such a work may be properly conducted, in the pulling of ropes on board ship, in the rowing of larj»e boats, in some mining operations, in the erection of a scaffolding for building, and in the breaking of stones for the repair of a road, so that the whole of the road shall always be kept in good order; in all these simple operations, and thousands more, it is absolutely necessary that many persons should work together, at the same time, in the same

* Note to Wakefield') edition of Adam Smith, vol. I. D. 26.

place, and in the same way. The savages of New Holland never help each other, even in the most simple operations; and their condition is hardly superior, in some respects it is inferior, to that of the wild animali which they now and then catch. Let any one imagine that the labourers of England should suddenly desist from helping each other in simple employments, and he will see at once the prodigious advantages of simple cooperation. In a countless number of employments, the produce of labour is, up to a certain point, in proportion to such mutual assistance amongst the workmen. This is the first step in social improvement." The second is, when "one body of men having combined their labour to raise more food than they require, another body of men are induced to combine their labour for the purpose of producing more clothes than they require, and with those clothes buying the surplus food of the other body of labourers; while, if both bodies together have produced more food and clothes than they both require, both bodies obtain, by means of exchange, a proper capital for setting more labourers to work in their respective occupations." To simple co-operation is thus superadded what Mr. Wakefield terms Complex Co-operation. The one is the combination of several labourers to help each other in the same set of operations; the other is the combination of several labourers to help one another by a division of operations.

There is "an important distinction between simple and complex co-operation. Of the former, one is always conscious at the time of practising it: it is obvious to the most ignorant and vulgar eye. Of the latter, but a very few of the vast numbers who practise it are in any degree conscious. The cause of this distinction is easily seen. When several men are employed in lifting the same weight, or pulling the same rope, at the same time, and in (he same place, there can be no sort of doubt that they co-operate with each other; the fact is impressed on the mind by the mere sense of sight; bat «.'hen several men, or bodies of men,are employed at different times and places, and in different pursuits, their co-operation with each other, though it may be quite as certain, is not so readily perceived as in the other case: in order to perceive it, a complex operation of the mind is required."

In the present state of society the breeding and feeding of sheep is the occupation of one set of people, dressing the wool to prepare it for the spinner is that of another; spinning it into thread of a third, weaving the thread into broadcloth of a fourth, dyeing the cloth of a fifth, making it into a coat of a sixth, without counting the multitude of carriers, merchants, factors, and retailers put in requisition at the success: ve stages of this progress. All these persons, without knowledge of one another or previous understanding, co-operate in the production of the nlrimate result, a coat. But these are far from being all who co-operate in it; for each of these persons requires food, and many other articles of consumption, and unless he could have relied that other people would produce these for him, he could not hava devoted his whole time to one step in the succession of operations which produces one single commodity, a coat. Every person who took part in producing iood or erecting houses for this series of producers, has, however unconsciously on his part, combined his labour with theirs. It is by a real, though unexpressed, concert, "that the body who raise more food than they want, can exchange with the body who raise more clothes than they want; and if the two bodies were separated, either by distance or disinclination—unless the two bodies should virtually form themselves into one, for the common object of raising enough food and clothes for the whole—they could not divide into two distinct parts the whole operation of producing a •nfficient quantity of food and clothes."

§ 2. The influence exercised on production by the separation of employments, is more fundamental than, from the mode in which the subject is

usually treated, a reader might be induced to suppose. It is not merely that when the production of different things becomes the sole or principal occupation of different persons, a much greater quantity of each kind of article is produced. The truth is much beyond thiB. Without some separation of employments, very few things would be produced at all.

Suppose a set of persons, or a number of families, all employed precisely in the same manner; each family settled on a piece of its own land, on which it grows by its labour the food required tor its own sustenance, and as there are no persons to buy any surplus produce where all are producers, each family has to produce within itself whatever other articles it consumes. In such circumstances, if the soil was tolerably fertile, and population did not tread too closely on the heels of subsistence, there would be, no doubt, some kind of domestic manufactures; clothing for the family might perhaps be spun and woven within it, by the labour probably of the women (a first step in the separation of employments); and a dwelling of some sort would be erected and kept in repair by their united labour. But beyond simple food (precarious, too, from the variations of the seasons), coarse clothing, and very imperfect lodging, it would be scarcely possible that the family should produce anything^ more. They would, in general, require their utmost exertions to accomplish so much. Their power even of extracting food from the soil would be kept within narrow limits by the quality of their tools, which would necessarily be of the most wretched description. To do almost anything in the way of producing for themselves articles of convenience or luxury, would require too much time, and, in many cases, their presence in a different place. Very few kinds of industry, therefore, would exist; and that which did exist, namely the production of necessaries, would be extremely inefficient, not solely from imperfect implements, but because, when the ground and the domestic industry fed

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