188 LES PRINCIPES MATHEMATIQTJES DE 



To lay the foundations of the theory of exchangeable values, we shall not, with 

 the majority of speculative writers, remount to the cradle of the human race ; we 

 shall not take in hand to explain either the origin of property, or that of the 

 exchange or division of labour. This all belongs without doubt to the history of 

 man, but has no influence on a theory which can only become applicable at a very 

 advanced stage of civilisation, a stage when (to use the language of geometers) 

 the effect of the initial circumstances has entirely ceased. 



We shall appeal to but one axiom, or, if you please, we shall employ one 

 hypothesis alone, namely, that every one tries to get for his property or labour 

 the greatest possible value. But in deducing the logical consequences of this 

 principle, we shall attempt to fix, better than has yet been done, the elements or 

 data which observation alone can furnish. Unhappily this fundamental point is that 

 which theorists almost unanimously present to view in a manner, we will not say, 

 false, but-absolutely meaningless. " The price of things," say they, with almost 

 one voice, " varies directly as the demand, and inversely as the supply." 



Our author then proceeds to shew, that, taken in its strict 

 mathematical meaning, the principle is palpably wrong, but as we 

 do not imagine that the writers who use it, ever meant it to bear 

 such meaning, it is not necessary to follow him here : doubtless, the 

 " variation" spoken of is only a loose way of expressing increase and 

 decrease, without specifying that particular mode which is implied in 

 the technical word " variation." The following is of more im- 

 portance : 



Besides, what are we to understand by the " demand ?" It is without doubt not the 

 quantity which is really sold at the demand of buyers, for in that case there would 

 result from the pretended principle the consequence, which is in general absurd, that 

 the dearer a commodity is, the more of it there will be sold. If by " demand," we 

 are to understand only a vague desire to possess the commodity, abstraction being 

 madeofthe limit of price which each demander implies in his demand, there is 

 scarcely a commodity for which we might not consider the demand as infinite ; 

 and if we are to take count of the price at which each demander consents to buy, 

 each provider consents to sell, what means the pretended principle ? It is, we 

 repeat, a proposition — not erroneous, but-devoid of meaning; and accordingly, 

 all those who have agreed to announce it, have equally agreed not to make any 

 use of it. Let us try to betake ourselves to principles less barren. 



"We must here condense somewhat. The law of the demand, that is, 

 the relation between the price of a commodity and its sale, (for Cour- 

 not justly uses " sale" and " demand" as synonymous, no theory 

 being able to take count of a " demand" not followed by a 

 "sale") is altogether unknown, nor is it likely that experi- 

 ence could furnish data, or analysis supply a formula which 

 should determine and represent it, depending as it does on 

 circumstances so numerous and variable and often of so 

 shadowy a character as to elude the subtlest granp. All we know of 

 it is, that in general the sale or demand of a commodity increases 



