V. — Generalization and Economic Standards. 

 By W. G. LANGWORTHY TAYLOR. 



The inductive habit arising from the historical and statisti- 

 cal study of economics is liable, at times, to lead the investiga- 

 tor into a complex of detail or of criticism, which seems to go 

 almost to the point of denying the function of generalization 

 as a method of reaching the truth. No one will, however, be 

 inclined to deny the abstract statement that generalization is 

 essential to the method of science in all its branches. On the 

 other hand, the salutary effect of special criticism is equally in- 

 contestable. It is, therefore, with pleasure that the writer 

 acknowledges his obligations to a recent article on the Exploi- 

 tntion of Theories ofValuc,^ while he wishes to point out such 

 complimentary arguments as may serve to supply the basis of 

 generalization. 



The question of deferred payments is a most convenient one 

 for the introduction of the topic of method. An erroneous 

 method cannot conduct us to the truth, except by chance; a 

 correct method may lead to correct results. In every inquiry, 

 a logical form must accompany the specific subject matter, and 

 hence is of great importance. If we are pursuing inquiries the 

 answers of which may subsequently be the ground of positive 

 action, it is highly important that we be fully conscious of the 

 validity of our method of inquiry. If we advise society to 

 take this or that action, we must first be sure that we have a 

 right to treat society at least as a synthetical unit having in- 

 terests that may be separately considered and about which a 

 distinct policy may be affirmed. Now, the question of deferred 

 payments may be properly treated as a question of the medium" 

 of exchange; and the medium of exchange is preeminently a 



'Frank Fetter, Ph. D. Annals of the American Academy, May, 1895. 

 University Studies, Vol. II., No. 2, January, 1S97. 1G3 



