their contracts. Conjoint action is possible just in proportion as human beings can rely on 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. Babbage, 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 whole year's transactions, how great a return, in saving of time, trouble, and expense, is brought in to the producers and dealers of such a town from their own integrity. "The influence of established character in producing confidence operated in a very remarkable manner at the time of the exclusion of British manufactures from the Continent during the last war. One of our largest establishments had been in the habit 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 payment, 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."

§ 6. Among the secondary causes which determine the productiveness of productive agents, the most important is

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; and the consequence is, that the price is so uniforin, 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 has, nevertheless, been considered more economical to build extensive flour-mills (such as those at Deptford), and to grind their own corn, than to verify each sack of purchased flour, and to employ persons in devising methods 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 since, 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 doctors 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 good seed so prepared, it was proved that, from the improved appearance, the

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 cir

market price would be enhanced by this process from five to twenty-five shillings a hundred-weight. But the greatest evil arose from the circumstance of these processes rendering old and worthless seed equal in appearance to the best. One witness had tried some doctored seed, and 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 so 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 consequence diminished their consumption of the 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 had greatly fallen off, from the making of fraudulent and bad articles; that "a kind of lace called single-press was manufactured," (I still quote Mr. Babbage,) "which, although good to the eye, 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 manufacturers were obliged to employ a magnifying-glass for that purpose; and that in another similar article, called warp-lace, such aid was essential."

cumstance of tyrannical violence, by the agents of a rapacious government, it is not likely that 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 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 persons invested with its authority. Against 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 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, was 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 to 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 evil-doers, 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 law and 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 for 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, ac'cording 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