It has been the purpose, on the numerous controverted points, to set forth clearly both sides of the subject, while there is no attempt to conceal the convictions of the writer.

The author has drawn largely upon the works of Henry C. Carey. In respect to the labor-question he is specially indebted to Professor Francis A. Walker's able treatises. The late Professor Jevons has furnished valuable aid on the Instrument of Exchange. Other writers are cited as occasion has demanded.

CONTENTS.

INTRODUCTORY CHAPTER.

DEFINITIONS AND PRELIMINARY STATEMENTS.

-

1. Relation of Social Science to Political Economy.-2. Wealth.

-3. Value: general notion. 4. Chief element of value;

cost of production.—5. Capital as pre-existent labor an ele-

ment in value. Exertion and abstinence.-6. Utility an es-

sential characteristic of value. Definition. When more or

less prominent.-7. Utility not the measure of value. Some-

times in an inverse ratio. Full definition of value.-8.

Further consideration of wealth. Full statement of its

import.-9. MAN the proper subject of Political Economy,

not mere material wealth.-10. Economy, husbandry, not

parsimony. Political Economy has reference to man in so-

ciety. Association and individuality the great forces of civil-

ized humanity.-11. General divisions of the subject..

PAGE

I

BOOK FIRST. — PRODUCTION.

CHAPTER I.

PRODUCTIVE AGENCIES.

1. Production defined and illustrated. Two great agencies,

nature and man. Man furnishes labor. Nature supplies

(1) materials, (2) forces.-2. Labor defined; consists in

effecting changes

9

CHAPTER II.

APPLICATION OF LABOR TO PRODUCTION.

1. Application of labor, direct and indirect. Direct labor of

three kinds,-transformation, transmutation, and transpor-

tation.-2. Indirect application: more obvious. Five kinds:

1. Preparation of material; 2. Manufacture of implements;

3. Providing sustenance; 4. Furnishing clothing, shelter, etc.;

5. Protecting the laborers.-3. Among the less obvious

forms of indirect labor are: 1. Organizing, superintending,

etc.; 2. The rearing of children; 3. Education; 4. The pro-

fessions; 5. Invention and discovery.-4. Labor not the

sole condition of wealth. Mind and character

CHAPTER III.

PRODUCTIVE AND UNPRODUCTIVE LABOR.

1. Disagreement among writers.—2. Several kinds of effort gen-

erally allowed to be unproductive: 1. Misdirected labor;

2. That of which the ultimate object is destructive; 3. All

purely speculative projects; 4. That which is expended in

ministering to vicious appetites

CHAPTER IV.

CAPITAL.

1. Capital the fruit of abstinence, but not of abstinence alone.

-2. A capitalist not necessarily a rich man. Professor

Bowen on the beginnings of capital.-3. Relation of capi-

tal to wealth.-4. Wealth which is not capital. - 5. Fixed

and circulating capital.-6. Capital must be consumeḍ. -

7. Nearly all wealth the result of recent production. — 8.

Change of circulating into fixed capital.-9. Effect of the

invention of labor-saving machinery

CHAPTER V.

RELATIONS OF CAPITAL AND LABOR.

-

1. Generally that of mutual dependence.-2. Capital furnishes
conditions of labor. Doctrine of the limitation of labor by

capital subject to a variety of modifications.

Still true in

general that a small amount of capital employs a small

amount of labor.-3. Effect of unproductive expenditure

of the rich on the welfare of the poor.

CHAPTER VI.

SOME CONDITIONS OF HIGHEST PRODUCTION.

1. Combination and division of labor. Association and indi-

viduality.-2. Combination of two kinds, simple and com-

plex.-3. Diverse processes in a single trade. Vast in-

crease of productive power thus effected.—4. Direct bene-

fits of division of labor.-5. Limitations to division of

labor.-6. Some disadvantages.

CHAPTER VII.

CONDITIONS OF HIGHEST PRODUCTION, continued.

1. Diversification of industry. This diversification as far as

possible in each community.-2. Diverse tastes and apti-

tudes to be met, otherwise much productive force lost.-3.

Freedom of labor and commerce. This freedom to be
real, and not merely theoretical. The largest liberty always
under some restrictions.-4. General education, a great
productive power.-5. Moral character an important con-
dition

PAGE

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42

BOOK SECOND.- CONSUMPTION.

CHAPTER I.

NATURE AND VARIOUS FORMS OF CONSUMPTION.

1. Production implies consumption; that is, the destruction of

values.—2. Re-appearance of the value destroyed, in other

forms.-3. Voluntary or involuntary.

49

CHAPTER II.

PRODUCTIVE AND UNPRODUCTIVE CONSUMPTION.

1. The difference not always easy to determine.-2. Much ob-

viously unproductive. 3. Necessaries, conveniences, and

PAGE

1. The support of government.-2. Principles which should con-

trol in public expenditure.—3. Expenditure for general edu-

cation.-4. Pauperism.-5. War and national defence

57

BOOK THIRD.—EXCHANGE.

CHAPTER I.

PRINCIPLES WHICH FORM THE BASIS OF EXCHANGE.

-

1. Definition and explanation.· 2. How related to association

and individuality.-3. Exchange between remote communi-

ties.-4. "Commerce" and "Trade." Obstacles to direct

exchange.

CHAPTER II.

THE LAW OF EXCHANGE.

1. Value for Value. Reference to the nature of value.-2. Con-

ditions modifying the law. No general rise and fall of

values.-3. Supply and demand. Terms explained. The

general principle as affecting value.-4. Further limitation

of these terms.-5. How increase of supply by diminishing

value increases demand.-6. The principle modified in cases

of limited production.-7. The law still further modified

by other circumstances

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