POLITICAL ECONOMY. 



77 



Political gives far less encouragement to industry than the ho- 

 Economy. nrt ( plenty of a hundred households, of which his 

 household supplies the place. 



As even new demands made manufactures prosper, 

 the number of labourers, in spite of the augmented 

 powers of labour, increases likewise ; and such as were 

 dismissed from the country found still an establishment 

 in manufacturing towns, the population of which con- 

 tinued to increase. But now when at last the market of 

 the universe has been found sufficiently provided for, 

 and new reductions of workmen have occurred ; when 

 hinds have been dismissed from the fields, spinners 

 from the manufactories of cotton, weavers fiora those 



of cloth; when each day a new machine supplies the Political 

 place of several families, whilst no new demand offers Ky"l 

 them an occupation or a livelihood ; distress has reach- * ""Y"" 

 ed its height, and one might begin to regret the pro* 

 gress of this civilization, which, by collecting a greater 

 number of individuals in the same space of ground, 

 has but multiplied their wretchedness, whilst in dearU 

 it could at leant but reach a small number of victims. 

 One might also regret that governments have studied too 

 late, and neglected too constantly the precepts of a 

 science, which, teaching the origin of national prospe- 

 rity, points out beforehand its danger, and the causes 

 of its destruction. 



ANALYTICAL INDEX. 



iflerFirtt. Object of Political Eco- 

 nomy, and origin of the science, 

 page 37 



The object of the science of government 

 is to increase the happiness of men, 

 and to extend that happiness to all 

 classes, ib. 

 Civil policy provides for their moral 



happiness, by liberty, education, 

 and religion, ib. 

 ol ideal Economy provides for the phy- 

 sical well-being of man, by the 

 accumulation and preservation of 

 wealth, ib. 



Government ought to have in view the 

 happiness of all men, not of any 

 particular class, ib. 



Wealth and population are national 

 advantages, only in so far as they 

 are consistent with the happiness 

 of all, ib. 



It is not, however, the equality of ranks, 

 but the happiness of all ranks, 

 that the legislator ought to have 

 in view, ib. 



Political Economy is properly the 

 science, which teaches the nature 

 and causes of the wealth of na- 

 tions, ib. 



The administration of the public for- 

 tune was first studied under the 

 name of Finance, ib. 

 The protection of private fortunes an es- 

 sential part of justice, ib. 

 Cut the national fortune, composed of 

 the fortunes of all, was not an ob- 

 ject of speculation with the ancient 

 philosophers, 38 



Revolution in the times of Charles V. 

 who deprived the popular magis- 

 trates, brought up in business, of 

 the administration and charge of 

 finance, ib. 



uin and distress of all the industrious 

 countries, a consrquence of the 

 government and wars of Charles 

 V. ib. 



The universal exhaustion of finances 

 showed the importance of political 

 economy, ib. 

 Political economy began to be studied 



by the ministers of finance, ib. 

 First ideas of amendment entertained 



by Sully and Colbert, ib. 

 Colbert having especially protected 

 commerce, the mercantile system 



of political economy received the 

 name of Coll/ertitm, but improper- 

 ly, 39 



Merchants having at their disposal all 

 the wealth of the state, attracted 

 the attention of governments, ib. 



Princes, offering to merchants the means 

 of selling dear and buying cheap, 

 shared their profits, ib. 



Origin of the mercantile system ; the 

 balance of commerce assigned as 

 the cause of the accumulation of 

 money, ib. 



Origin of the territorial system, or sys- 

 tem of Economists of Quesnay, ib. 



Quesnay shows that money is not 

 wealth, ib. 



He represents commerce as an exchange 

 of equal values, which cannot en- 

 rich a nation, 40 



Manufactures, in his opinion, are only 

 an exchange of the future against 

 the piesent, and therefore equally 

 incapable of enriching a nation, 

 ib. 



But agriculture seemed to him to give 

 scope for a new creation, in the 

 rent of land, and he made it the 

 sole source of wealth, ib. 



The results of the system of the Econo- 

 mists were diametrically opposed 

 to those of the mercantile system, 

 ib. 



This ingenious system was but ill sup- 

 ported by facts ; for in France 

 none were presented to the public, 

 ib. 



Origin of the system of Adam Smith, 

 founded upon labour and econo- 

 my, ib. 



Division of the woik destined to ex- 

 plain this system, ib. 



Chapter Second. Formation and pro- 

 gress of wealth, page 41 



The industry of man i the source of 

 his wealth ; his desires and his 

 wants are its employment, ih. 



The produce of labour, preserved and 

 accumulated between its crea. 

 tion and its consumption, consti- 

 tutes wealth, ib. 



An isolated man, master of a desert 

 island, begins to grow rich only 

 when, by his labour, he subdues 

 the animals which he tames, 41 



Then the ground itself to which his la- 

 bour gives value, ib. 



At length his labour will procure him 

 lodging and clothes, ib. 



Every species of wealth must undergo 

 the labour which creates, the eco- 

 nomy which accumulates, the con- 

 sumption which destroys, ib. 



Labour which procures no enjoyment is 

 useless ; and that labour, whose 

 fruits cannot be accumulated, is 

 unproductive, ib. 



An unproductive labour may be very 

 useful, if while it creates no 

 wealth, it secures and renders 

 wealth fit for enjoyment, ib. 



By paying a wage for useless or un- 

 productive labour, we do not change 

 its nature, we but change the per- 

 son who loses the first, and who 

 cannot accumulate the second, 42 



Exchanges in society increase the pro- 

 ductive powers of labour, and mul- 

 tiply the enjoyments which wealth 

 procures, ib. 



Exchange can take place only when 

 each of the two contracting parties 

 finds more advantage in purchas- 

 ing the commodity wanted, than 

 in making it for himself, ib. 



Each discovering that he did well what 

 he did frequently, ill what he did 

 rarely, trades were divided, ib. 



Much more work was accomplished af- 

 ter the divibicn of trades, but also 

 much moic was required after their 

 perfection, ib. 



All work being produced prior to 

 consumption, the production of all 

 is regulated by the consumption of 

 all, ib. 



The consumption of an individual, and 

 that of the society of which he 

 forms a part, should be propor- 

 tional to their revenue, ib. 



Distinction between the funds of con- 

 sumption destined for immediate 

 use, and the capital destined for 

 reproduction, 43 



The master who hires workmen, is in 

 the condition of the husbandman 

 who sows the ground ; the wage is 

 composed of the goods consumed 

 for reproduction witli interest, 

 ib. 



The husbandman divides his crop be- 



tween his expences, his permanent 

 advances, and his seed, 43 



Permanent advances for any productive 

 labour constitute fixed capital, ib. 



Annual advances, which are consumed 

 for the purpose of reproduction 

 with interest, constitute circulat- 

 ing capital, ib. 



Reproduction necessarily limited by 

 consumption, ib. 



The funds of consumption compre- 

 hend, not only domestic provi- 

 sions, but all the funds of those 

 who lend out articles to hire, and 

 part of the funds of retail dealers, 

 44 



The national revenue consists of the 

 whole value by which the repro- 

 duction surpasses the consumption 

 that produced it, ib. 



Some acquire a right to their part of 

 the national revenue by an annual 

 labour, others by the prolonged 

 effect of an antecedent labour, ib. 



By a circular concatenation production 

 regulates revenue, revenue con- 

 sumption, and consumption regu- 

 lates production, ib. 



Nations may be ruined either by con- 

 suming too much or by consum- 

 ing too Hide, ib. 



Consumption, which, instead of being 

 an expence, gives movement to 

 new labour, complicates the pro- 

 portion between production and 

 consumption without destroying it, 

 45 



Money did not create wealth, it only 

 facilitated the operations of trade, 

 ib. 



The precious metals, equally sought 

 after by all men, at length came 

 to represent every species of wealth, 

 ib. 



New activity given to exchanges by 

 the invention of money, ib. 



Each exchange being advantageous for 

 the two contracting parties, aug- 

 ments the mass of national enjoy- 

 ment, ib. 



Distribution of revenue among the 

 classes of society by agriculture, 

 46 



. by manufactures, ib. 



_____^_ by trade, ib. 



Formation of a guardian population, 



