838 EEroRT— 1892. 



methods witliin their own limits, we must insist on the subordination of the study 

 of what is, and what tends to be, to the study of what ought to be. And at least 

 the three studies must be carefully distinguished. 



III. The Divisions of Economics. — Regarding production, distribution, and con- 

 sumption as the chief departments of economic science, we have to notice a ten- 

 dency to give undue prominence to production. From an ethical point of view, 

 we must insist on the importance of distribution and consumption. Also produc- 

 tion must be studied, not merely with reference to the thing produced, but also to 

 the person producing. With regard to consumption, we have to consider the 

 effects of difierent kinds of consumption : (1) on the well-being of the consumer; 

 (2) on that of the producer. The importance of this side of economic study has 

 been partly obscured by the Utilitarian theory. The theory of value has been 

 somewhat obscured in the same way. Objective values must be studied as well 

 as subjective. 



IV. Applied Economics. — Political economy is an art as well as a science, and 

 it is chietiy in its aspect as an art that it is aflected by ethical considerations. In 

 applying economics to the guidance of conduct, it is necessary to consider the 

 question of justice. On this subject recent ethical thought has thrown an im- 

 portant light by the introduction of the conception of the organic unity of society. 

 The conception of justice thus reached may be opposed to the conceptions of 

 abstract freedom and abstract equality. The chief thing to be insisted on, from 

 this point of view, is that everyone must be treated both as means and as end. 

 "VVe arrive in this way at two great commandments: — (1) Thou shalt not exploit. 

 (2) Thou shalt not pauperise. The application of these principles in detail is by 

 no means easy. It iti n problem that will require the same strenuous application 

 as that which has already been devoted to questions of production and exchange. 



FBI DAY, AUGUST 5. 

 The following Papers were read : — 



1. Old-age Fensions. By Rev. W. IMOORE Ede, M.A. 



Pending promised information by Local Government Board, Mr. C. Booth's 

 reduced estimate is that 25 9 of population over sixty-hve apply for relief each 

 year, and yO ppr cent, who reach sixty-live are paupers before they die. A large 

 amount of suffering of the aged not included in these figures 



The Poor-law refuses all help to those not absolutely destitute. The unskilled 

 labourer cannot save enough to support himself entirely, so bad policy to save 

 anything. 



The reform needed is such a change of method as will render it possible for 

 everyone to make provision for old age if he will. 



Insurance presents many practical difliculties, of which irregularity of employ- 

 ment and cost of working are chief, and would not touch the poorest, 



Mr. Chamberlain's scheme is right in suggesting that cost of pension should be 

 borne to extent of one-half by taxfition. 



Endowment, as .suggested by Mr. C. Booth, would be too costly, as to give 

 everyone over sixty-five r)S. a week would require raising 10,000,000/. extra taxation. 



Everj-one does not require such help. To give three who can do without it a 

 pension in order to secure that the fourth shall have it on sound principles may be 

 logical, but is not practical. 



The readers suggestion is to combine the principle of Mr. Chamberlain's scheme 

 to the extent of throwing half the burden on taxation with Mr. Booth's endow- 

 ment proposal, and give 2«. Qd. a week to everyone over sixty-five whose income is 

 less than, say, CO/, per annum. Every man would be left free as to how he found 

 his half of the pension. Those who could do nothing for themselves would be 



