dination by the tyrannous power of capital. If, therefore, a poorer nation wishes to have free trade at home, she cannot remain passive as to the direction of the national industry.

§ 16. Of native American writers, a very considerable number defended the nationalist theory of economy, from the beginning of our union into one people, and some even earlier. Of these Alexander Hamilton, Tench Coxe, Matthew Carey and Charles J. Ingersoll deserve mention. But their aim was not to furnish a scientific basis for a national economy, but rather to urge a certain economic policy from reasons of direct and evident utility.

The former work was accomplished by Mr. Henry C. Carey, in whose writings, as we believe, the science of national economy passes out of the mechanical into the dynamical stage, i. e. becomes a true science. Instead of giving us a mass of empirical rules and maxims such as we find in the writings of the mercantile school,‚—or a mass of fine-spun speculations that stand in no vital relation to the practice and life of nations, as is done by the school of the Economistes, and (in a less degree) by that of Adam Smith, he presents a body of economic teaching, that rests on a few great and simple principles or conceptions, drawn by actual observation from life itself, yet nowhere incapable of direct application to any practical question. These principles are the laws that govern the constitution and course of nature in things economical. They are at once the laws of human nature, and of that external nature, in harmony with which man was created.

Their discovery involves a searching criticism of the very premises of the so-called Industrial School, and of those conclusions that fairly earned the name of "the dismal science." For it shows that these natural laws are laws of progress towards wealth and the equality of wealth. Where they are allowed to act freely and fully, men rise from poverty, isolation and lawlessness, to wealth, association and national order. The history of human economy is the story of man's transition from the savage's subjection to nature, to the citizen's mastery of her forces; and with every advance the greater advantage is reaped by the most

numerous class, that is, the poorest. It thus "vindicates the ways of God to men," and vindicates also the existing framework of our civilization against the destructive criticisms of socialists and communists.

And wherever the wretchedness of the savage perpetuates itself or reappears within the sphere of civilization, there is to be seen, not the effects of natural law, but of its violation. There some class at home or abroad,—through some vicious legisla tion or defect of legislation, has interfered for selfish ends to hinder the natural progress toward wealth, equality and the harmony of interests in the national equilibrium of industries. To remove such obstacles is the sole function of the state, as regards the active direction of industry.

Of Mr. Carey's books the chief are Essay on the Rate of Wages (1835); The Past, the Present, and the Future (1848); The Harmony of Interests (1851); The Slave Trade, Domestic and Foreign (1853); Principles of Social Science (3 vols. 1858); and The Unity of Law (1872). Of these and others of his works, translations of one or more have appeared in eight of the principal languages of Europe.

Other members of this school: in America, the late Stephen Colwell (The Ways and Means of Payment, 1859), the late Hon. Horace Greeley (Essays designed to elucidate the Science [Art?] of Political Economy, 1870); Hon. E. Peshine Smith (Principles of Political Economy, 1853 and 1872); and Dr. William Elder (Questions of the Day, Economical and Social, 1870). In France, M. Fontenay, Benjamin Rampal and A. Clapier (De l'Ecole Anglaise et de l'Ecole Américaine en Economie Politique, 1871). Fred. Bastiat borrowed some of Mr. Carey's ideas (Harmonies Economiques, 1850 and 1851) to fight the socialists, and made a curious mixture of these with those of the cosmopolitical school. In Italy the statesman and economist Ferrara gives his adherence to Mr. Carey's first principles, and censures Bastiat for his half discipleship. He has translated the Principles into Italian. In Germany Dr. Dühring of the University of Berlin (Carcy's Umwälzung der Volkswirthschaftslehre und Socialwissenschaft, 1865; Capital und Arbeit, neue Antworten auf alte Fragen, 1865; Die Verkleinerer Carey's, und die Krisis der Nationalökonomie, 1867; Kritische Geschichte der Nationalökonomie und Socialismus, 1871; Cursus der National- und Socialökonomie, 1873); and Schultze-Delitzsch, the great antagonist of socialism, and promoter of co-operation (Capitel zu einem Deutschen Arbeiter-Katechismus, 1863; Die Abschaffung des geschäftlichen Risico durch Herrn Lassalle; ein neues Kapitel zum Deutscher Arbeiter-Katechismus, 1866; besides many smaller works. French trans

THE CONTRAST OF THE SCHOOLS.

31.

lation of these two by Rampal, 1873.) In England, Judge Byles (Sophisms of Free Trade, 1st edition 1849; 9th edition 1870; American edition 1872.)

§ 17. The differences that exist between the two schools is not merely in regard to the details; it is a difference about foundations and first principles. Neither can concede to the teaching of the other the name and rank of a science, without giving up its own claim to that name and rank.

The difference is one of method also. The English school adopt the deductive method of the mathematical sciences, and reason down from assumed first principles to the specific facts. They claim that the necessary data for this are already at hand, in the known characteristics and tendencies of human nature, the avarice and the desire of progress, which control and direct the economic conduct of great masses of men. They leave all other elements out of account as inconstant, while they regard these as constant. Theirs is therefore " a science based upon assumptions" (Saturday Review); it "necessarily reasons from assumptions, and not from facts" (J. S. Mill).

The American and German school apply the inductive method of observation and generalization, which has produced such brilliant results in the natural sciences. They begin with a wide study of the actual working of economical forces, and endeavor to reason upward from the mass of complicated facts to the general laws that underlie and govern all. They begin by recognising the existence of an actual constitution and course of nature, instead of seeking to devise an artificial one on assumed principles.

These differences will be exemplified in the following chapters

CHAPTER SECOND.

THE DEVELOPMENT OF SOCIETY.-THE NATION.

§ 18. "MAN is a political animal," Aristotle tells us. His nature has not attained its perfection until he is associated with his fellows in an organized body politic. Whatever may be the historical occasion of the origin of the state, this fact of man's nature is the sufficient cause.

The first type of society is the family. This, like the state, is a natural form. It is a relationship not constituted by a reflective act of its constituent parts. No man has a choice as to whether he will or will not be born into a family, though he may by his own act cease to belong to it. Like the state, the family has a moral personality and a distinct life. It is a whole which contains more than is contained in the parts as such; that is, it is an organism, not an accretion.

§ 19. The family expanded into the tribe. Related or neighboring families held or drawn together by natural affection or neighborly good feeling, or a sense of the need of union for the common defence, but chiefly by the political needs and instincts of their nature, formed an organic whole. By the legal fiction of adoption, all were regarded as members of one family and children of the common patriarch, living or dead. The reverence for the common father whose name they bore became a hero-worship, and bound them together by religious ties. Their living head or chief was regarded as inspired with judgment to pronounce upon disputed cases, which gradually gave rise to a body of judicial rules or laws revered as of divine authority

§ 20. The tribe became-though not always-a city A hill-fort thrown up for defence against some sudden attack became the rallying-point and then the residence of its people. The conquest or adoption of other tribes added to their numbers and strength, and their home was enclosed by a wall capable of defence. The tribal gods of the first citizens obtained general

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THE CITY AND THE NATION.

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recognition as the defenders of the city, but those of the newcomers were still worshipped by the clans. The first and the adopted tribes took the place of power, claiming to be "the people," and forming an aristocracy who possessed exclusive knowledge of the laws and religion of the city. Only after prolonged struggle were these published in a code, and places of responsibility opened to the new citizens or plebs.

§ 21. By the conquest of other cities, the city in some cases attained an imperial rank. In other cases a number of cities freely united in a league of offence and defence, and ceded their power to make war to a central congress, and established a common treasury. Both movements are in the direction of the nation, the complete form of the state, as the tribe and the city are incomplete forms. The nation is scarcely found in ancient history, save perhaps among the Jews and the Egyptians, and even among them the tribal divisions perpetuated themselves within the national unity.

§ 22. The nation in its true form first appears in the kingdoms founded in Western Europe by the Teutonic tribes, after the destruction of the Roman Empire. The Teuton hated cities and loved the open country. When he spared a city he generally left it to its old occupants and made them his tributaries. He divided the open country into marks or communes, whose occupants were actually or by adoption members of one family-clan and bore the same name. Several of these were gathered by force of the political instinct into "hundreds," hundreds into "shires," and shires into kingdoms. Over each of these subdivisions an elder, alderman or chief presided. In this way the race passed from the tribal to the national constitution, without developing the vigorous municipal life that had previously thwarted all attempts at establishing any larger body politic than the city, except a military, imperial despotism.

Within the Teutonic mark towns grew up by the same process as in the ancient world, and the antipathy of the race to the town life wore off. But before these new municipalities were powerful enough to hinder the national growth, the nation