§ 3. Third case; population and capital increasing equally,

the arts of production stationary

4. Fourth case; the arts of production progressive, capital

and population stationary.

5. Fifth case; all the three elements progressive

CHAPTER IV. Of the Tendency of Profits to a Minimum

§ 1. Doctrine of Adam Smith on the competition of capital.

2. Doctrine of Mr. Wakefield respecting the field of employ-

ment

3. What determines the minimum rate of profit.

4. In opulent countries, profits habitually near to the mini-

5.

6.

7.

prevented from reaching it by commercial revulsions.

by improvements in production .

by the importation of cheap necessaries and instru-

ments

8. by the emigration of capital.

CHAPTER V. Consequences of the Tendency of Profits to a

Minimum

§ 1. Abstraction of capital not necessarily a national loss

2. In opulent countries, the extension of machinery not

detrimental but beneficial to labourers

CHAPTER VI. Of the Stationary State

§ 1. Stationary state of wealth and population, dreaded and

deprecated by writers

2.

but not in itself undesirable

PAGE

714

715

720

725

727

728

731

733

735

736

738

740

742

746

748

CHAPTER VII. On the Probable Futurity of the Labouring

Classes

§ 1. The theory of dependence and protection no longer appli-

cable to the condition of modern society

2. The future well-being of the labouring classes principally

dependent on their own mental cultivation

3. Probable effects of improved intelligence in causing a

better adjustment of population-Would be promoted

by the social independence of women.

752

757

759

PAGE

§ 4. Tendency of society towards the disuse of the relation of

hiring and service

5. Examples of the association of labourers with capitalists

of the association of labourers among themselves

6.

7. Competition not pernicious, but useful and indispensable.

760

764

772

792

BOOK V

ON THE INFLUENCE OF GOVERNMENT

CHAPTER I. Of the Functions of Government in General

§ 1. Necessary and optional functions of government distin-

guished

795

2. Multifarious character of the necessary functions of

government.

796

3. Division of the subject

800

CHAPTER II. Of the General Principles of Taxation

§ 1. Four fundamental rules of taxation

802

2. Grounds of the principle of Equality of Taxation

3. Should the same percentage be levied on all amounts of

income? .

804

806

4. Should the same percentage be levied on perpetual and

on terminable incomes?

810

5. The increase of the rent of land from natural causes a fit

subject of peculiar taxation

817

6. A land tax, in some cases, not taxation, but a rent-charge

in favour of the public

820

7. Taxes falling on capital, not necessarily objectionable

821

CHAPTER III. Of Direct Taxes

§ 1. Direct taxes either on income or on expenditure .

PAGE

§ 5. An Income Tax

6. A House Tax

CHAPTER IV. Of Taxes on Commodities

§ 1. A tax on all commodities would fall on profits

2. Taxes on particular commodities fall on the consumer

3. Peculiar effects of taxes on necessaries.

4.

829

832

837

838

839

842

847

6. Effects produced on international exchange by duties on

exports and on imports

850

how modified by the tendency of profits to a minimum

5. Effects of discriminating duties.

§ 1. Arguments for and against direct taxation.

2. What forms of indirect taxation most eligible

3. Practical rules for indirect taxation

864

868

870

CHAPTER VII. Of a National Debt

§ 1. Is it desirable to defray extraordinary public expenses

by loans?

873

2. Not desirable to redeem a national debt by a general

contribution.

876

3. In what cases desirable to maintain a surplus revenue for

the redemption of debt.

878

CHAPTER VIII. Of the Ordinary Functions of Government,

considered as to their Economical Effects

§ 1. Effects of imperfect security of person and property

2. Effects of over-taxation.

881

883

§ 3. Effects of imperfection in the system of the laws, and in

the administration of justice

CHAPTER IX. The same subject continued

PAGE

884

CHAPTER X. Of Interferences of Government grounded on

Erroneous Theories

§ 1. Doctrine of Protection to Native Industry

916

2. Usury Laws

926

3. Attempts to regulate the prices of commodities

4. Monopolies .

930

932

5. Laws against Combination of Workmen

933

6. Restraints on opinion or on its publication

939

CHAPTER XI. Of the Grounds and Limits of the Laisser-faire

or Non-Interference Principle

§ 1. Governmental intervention distinguished into authori-

tative and unauthoritative

2. Objections to government intervention—the compulsory

character of the intervention itself, or of the levy of

funds to support it . .

3. increase of the power and influence of government

increase of the occupations and responsibilities of

government

:

4.

5.

superior efficacy of private agency, owing to stronger

interest in the work

6. importance of cultivating habits of collective action

in the people

941

942

944

945

947

948

1

§ 7. Laisser-faire the general rule

8. but liable to large exceptions. Cases in which the

consumer is an incompetent judge of the commodity.

Education

9. Case of persons exercising power over others. Protec-

tion of children and young persons; of the lower

animals. Case of women not analogous

10. Case of contracts in perpetuity.

11. Cases of delegated management

PAGE

950

953

956

959

960

12. Cases in which public intervention may be necessary to

give effect to the wishes of the persons interested.

Examples: hours of labour; disposal of colonial lands 963

13. Case of acts done for the benefit of others than the

persons concerned. Poor Laws

Colonization

14.

16. Government intervention may be necessary in default of

private agency, in cases where private agency would be

more suitable

966

969

975

977