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 employment

3. What determines the minimum rate of profit

4. In opulent countries, profits habitually near to the minimum

prevented from reaching it by commercial revulsions

5.

6.

7.

8.

-

by the importation of cheap necessaries and instruments.

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 laborers

304

307

CHAPTER VI. Of the Stationary State.

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

by writers.

311

CHAPTER VII. On the Probable Futurity of the Laboring

Classes.

§ 1. The theory of dependence and protection no longer applicable to

the condition of modern society.

2. The future well-being of the laboring classes principally dependent

on their own mental cultivation.

3. Probable effects of improved intelligence in causing a better adjust-

ment of population-Would be promoted by the social indepen-

dence of women.

326

.

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

and service.

327

5. Examples of the association of the laborers in the profits of indus-
trial undertakings

BOOK V.

OF THE INFLUENCE OF GOVERNMENT.

CHAPTER I. Of the Functions of Government in general.

§ 1. Necessary and optional functions of government distinguished 341

2. Multifarious character of the necessary functions of government

3. Division of the subject

342

348

CHAPTER II. Of the General Principles of Taxation.

§ 1. Four fundamental rules of taxation

2. Grounds of the principle of Equality of Taxation.

3. Should the same per centage be levied on all amounts of income?

4. Should the same per centage be levied on perpetual and on ter-

minable incomes?

349

352

354

360

364

367

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

of peculiar taxation

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

of the public

CHAPTER III. Of Direct Taxes.

§ 1. Direct taxes either on income or on expenditure

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. how modified by the tendency of profits to a minimum

5. Effects of discriminating duties

395

401

6. Effects produced on international exchange by duties on exports

and on imports .

405

434

§ 1. Is it desirable to defray extraordinary public expenses by loans?

2. Not desirable to redeem a national debt by a general contribution 438

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

redemption of debt

441

CHAPTER VIII. Of the Ordinary Functions of Govern-

ment, considered as to their Economical Effects.

§ 1. Effects of imperfect security of person and property

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

administration of justice

CHAPTER IX. The same subject continued.

444

446

448

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

faire or Non-interference Principle.

§ 1. Governmental intervention distinguished into authoritative and

unauthoritative

3.

-

512

2. Objections to government intervention-the compulsory character

of the intervention itself, or of the levy of funds to support it. 514

increase of the power and influence of government

. 516

increase of the occupations and responsibilities of government 517

superior efficiency of private agency, owing to stronger interest

in the work.

4.

5.

-

519

6.

importance of cultivating habits of collective action in the

people

521

7. Laisser-faire, the general rule

524

but liable to large exceptions. Cases in which the consumer

is an incompetent judge of the commodity.

9. Case of persons exercising power over others.

Education . . 528

Protection of chil-

dren and young persons; of the lower animals. Case of women
not analogous

10. Case of contracts in perpetuity

11. Cases of delegated management

12. Cases in which public intervention may be necessary to give effect
to the wishes of the persons interested. Examples; hours of la-
bor; disposal of colonial lands

(2)

13. Case of acts done for the benefit of others than the persons con-
cerned. Poor Laws

16. Government intervention may be necessary in default of private

agency, in cases where private agency would be more suitable. 557

BOOK III.

EXCHANGE.

(CONTINUED.)

CHAPTER VII.

OF MONEY.

1. HAVING proceeded thus far in ascertaining the general laws of Value, without introducing the idea of Money, (except occasionally for illustration,) it is time that we should now superadd that idea, and consider in what manner the principles of mutual interchange of commodities are affected by the use of what is termed a Medium of Exchange.

In order to understand the manifold functions of a Circulating Medium, there is no better way than to consider what are the principal inconveniences which we should experience if we had not such a medium. The first and most obvious would be the want of a common measure for values of different sorts. If a tailor had only coats, and wanted to buy bread or a horse, it would be very troublesome to ascertain how much bread he ought to obtain for a coat, or how many coats he should give for a horse. The calculation must be recommenced on different data, every time he bartered his coats for a different kind of article;