764 REPORT — 1886. 



Conclusion : — 



The great value of tlie work as it is to one-sixth of the working classes of Great 

 Britain. Remove its influence during the last forty years and England would be very 

 different frona what it is. 



Take a country village store in Warwickshire as an instance of its benefits. A 

 society, managed by labourers, with 700 members, with a business of 18,000/, a year, 

 of which nearly 2,000/. a year is saved, and owning freehold land and buildings 

 (including twenty cottages), worth nearly 4,000/. 



Take a large town. Consider the educational work done, the hopefulness on 

 the part of the worker who is encouraged, and the value of the savings during a 

 time of depression. 



Industrially it has more influence than is perceived. It is a great educator to 

 the working classes in the methods of handling capital. It trains many able men, 

 and labour becomes less and less looked upon as a ' commodity ' only. 



Much of the best side of human nature is called out in this associated work. 

 It is the development of this throughout business life, without impairing efficiency 

 and promptitude in management, which is needed. 



The capacity which has been developed by the movement was dormant and un- 

 suspected forty years ago. 



Other unthought of developments possible in the future. 



2. 0« the Economic Exceptions to Laisser faire.^ 

 By Professor Sidgwick, Litt.D. 



Political economy, as commonly understood, includes a general argument show- 

 ing how wealth tends to be produced most amply and economically in a society in 

 which Government confines itself to the protection of person and property and the 

 enforcement of contracts not brought about by force or fraud, leaving individuals 

 free to produce and transfer to others whatever utiUties they choose, on any terms 

 that may be freely arranged. The argument is, briefly, that in a society so consti- 

 tuted the regard for self-interest on the part of consumers will lead to the efiectual 

 demand of the things that are most useful ; and regard for self-interest on the part 

 of producers will lead to their production at the least cost. 



It is, however, now generally held tliat the broad rule of leave alone ' to which 

 this argument points must in practice be limited by various exceptions. 



The aim of the present paper is to distinguish clearly between two different 

 classes of these exceptions to laisser faire, viz., (n) those exceptions which are due 

 to tbe limitations under which abstract economic theory has to be practically 

 applied in the art of government, owing to the complexity of the ends at which 

 government has to aim, and to the fact that actual human beings only partly con- 

 form to the type usually assumed in abstract economic reasoning ; and (b) those 

 which it is the more direct business of economic theory to analyse and systematize, 

 since the reasons for them apply to the state of things assumed for purposes of 

 abstract reasoning, no less than to the actual facts of existing societies. 



In class (rt) may be distinguished — 



(1). Governmental interference to regulate the education or employment of 

 children. 



(2). Interference for the promotion of health, or morality, or culture. 



(3). Interference, not with a view to the more economical production of 

 wealth, but with a view to its more equitable distribution. 

 (This is often spoken of as 'socialistic,' or ' semi-socialistic.') 



(4). Interference on the ground that certain industrial classes are found by 

 experience not to take sufficient care of their private economic 

 interests. 



(This is sometimes spoken of as 'paternal' legislation; e.g., re- 

 strictions on freedom of contract between landlord and tenant. The 

 same phrase is also applied to (2).) 



' See also Contemjmrary Review, Nov. 1886. 



