THE BASIS OF THE SCIENCE OF POLITICAL 



ECONOMY. 



By Edward Atkinson. 



Presented March 9, 1898. 



I HAVE asked the opportunity to present a treatise upon the basis of 

 the science of political economy, because there are many masters of the 

 physical or exact sciences who deny the existence of such a science of 

 social relations. It is held by the writers on what is called political 

 economy that it relates to the production, distribution, and consumption 

 of wealtli. I do not think the name is well chosen, and I should vary 

 that definition somewhat in the following terms : the science of the pro- 

 duction, distribution, and consumption of the means of existence and of 

 material welfare. If there is no science, then there are no fundamental 

 principles constituting the basis of action of human beings in the main- 

 tenance of human life. If that is true, then material life rests wholly 

 upon chance. Is there any such thing as chance in the universe in which 

 humanity is a part ? Is there not even a law of chances governing the 

 accidents of life ? Does not order prevail everywhere ? Then, if order 

 prevails in the provision for human wants, it must rest on fundamental 

 principles. The definition of a principle in this connection would be, " a 

 rule of action among human beings," — " a demonstrated truth that re- 

 quires no further proof." I shall venture to present the evidence that 

 certain rules of action have governed human beings from prehistoric 

 times, and certain facts which are of the nature of demonstrated truths. 



Man is the only trading animal. Other animals co-operate in tribes 

 for mutual protection and to some extent for common sustenance, but 

 none exchange product for product or service for service ; none trade. 

 No other animal except man has invented money as a medium of trade. 

 It is therefore a rule of action governing human beings after they emerge 

 from the merely animal stage, that they exchange services ; they trade. 



The law of commerce is the law of mutual benefit. The motive of 

 commerce must at first have been an intellectual perception that by an 

 exchange of products both parties benefited. There may no longer be 

 any distinct intellectual action or separate and special conscious percep- 



