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CATECHISM
OF
POLITICAL ECONOMY;
OR,
FAMILIAR CONVERSATIONS
ON THE MANNER
IN
WHICH
WEALTH
IS
SOCIETY.
BY JEAN-BAPTISTEj SAY,
PKOFESSOn OF POLITICAI, ECONOMY
niCII,
IN"
WOLODOMIR OF RUSSIA MEMBER OF THE SOCIETIES OF ZCBOLOOXA, &C. ASiD AUTHOR OF A TREATISE ON POEITICAt ECONOMy.
KSIGHT OF
ST.
BY JOHN RICHTER.
PHILADELPHIA
PRINTED AND PUBLISHED BY M. CAREY & SON,
:
No.
126,
Chesnut-street.
il%
17, 1817.
ADVERTISEMENT,
means of becoming
ly to point
them
out.
rich.
It
professes on-
with wheels
make
what
and, as
a clock, so they
is
called Riches.
know where
they
not, is
it
useless even to
them
how
may be employed ?
by the perusal of
C0N0!v:iC3
this little
Work.
ADVERTISEMENT.
iv
But
son
who may
it
is
no per-
some advan-
tage.
It
why
this
my
fore
reason
evident.
If I
proved in a work of
The
by numerous ex-
detail,
an^ples and strict reasoning, that Pohtical Ecoin the present state of the science, is
nomy,
day
and that
all
is
passing every
it
them
far
satisfactory results,
from pretending
An
my
to so
elementary work
what do gmaticaL
from
credit
much
is
and
am
deference.
necessarily some-
knowledged
authority,
it is
And how
we
are
ADVERTISEMENT.
This task
is
and
the
at
intelligible to
however no longer
requisite
most versed
in
ciples of Pohtical
Economy,
better understood,
kind
efforts
man-
my
their sanction.
J.
B.
SAY.
CONTENTS,
CHAP.
I.
Page.
On
the use of
^:
II.
vIII.
IV.
Money
V.
VI.
VII.
established,
and of
Charges of Production
On
Land;
tliat is.
Income
38
ducts
43
49
in
general
On Private Consumption
XIII. On Public Consumption
XIV. On Public Property and Taxes
XII.
34
and
XL On Consumption
24
of
16
tlie
13
27
is
21
^ VIII.
62
54
66
71
CONTENTS.
Viii
P*S
CHAP.
XV. On Public Loans
.^-XVI. On Property and the Nature of Riches
^;^II. On Real and Nominal Price
^VIII. On Money
l^XIX. On Signs representing Money
^ykX. On Markets
XXI. On Regulations or Restraints of In-
On
XXIV. On
XXV. On
90
96
105
110
bitions
XXIII.
86
115
dustiy
XXII. On
80
Exportation
Population
Colonies
126
132
120
137
CATECHISM.
CHAPTER THE
On
the Composition
FIRST.
of Wealth and
the
Use of Money.
gold,
silver,
land,
mer-
J'^chandise
Are
not gold
That
is
be found.
and
preferable in
which
preferable to one
is
(2)
it is
tlie
prefeiTed.
greatest value
ten s:uineas in
hundred guineas
In
wealth ?
equal,
is
com
to
are
in gold.
is
not the
money
bet-
10
What
is
the reason
The custom
as a
medium
of it ?
money
in
who have
What
make
purchases to
that
is,
exchanges ?
If
your
for
you
are a farmer,
com
to
exchange a part of
for cloth,
your corn
and desire
cloth.
Without doubt.
You
have
in reality
made
com
a double exchange, in
to
That
is true.
The
value of this
afterwards in cloth
com
changed your
diate
com m as
transitorily in
for cloth,
money was
Such
Well! But if
is
all these
money,
in fact ex-
the interme-
in order to
change
why
^
is
thai
of money preferred ?
Because,
when
man
may want
while he
who
in order to obtain
what
He
must,
money
for merchandise.
OF MONEY.
11
Yes
used
articles are
and
silver, are,
of
be adopted by
Then
all
materials, the
It is that
all civilized
and other
most convenient
and commercial
nations.
are preferred
i?i
exchanges ?
are so in effect
more sought
after
which
to
much
they
may be
all
place
we
sure,
on more or
to
divided or
in fine,
they are
we
it
for
\\
/ comprehend the
money of gold and
tltrr
to place
exchange
in-
They
contain
to
They
shells
be used as money.
to
which
merch&ndise
hatever
reason
silver,
but
As we procure every
exchange when we
we may
more
how can
haA-e not a
and, above
desirable than
ive procure
thing else
be able
want.
why money,
is
tliat
mine
are
it
all,
any
we want by an
that
produces
it
12
in the
same way
that
we
procure
How
fruit
it.
to
give
it
in ex-
Produce
it.
Produce a thing
shall
But supposing
I be certain that 1
You may
shall get
tliat possible^
money for
that thing?
by giving
vakie.
We
how
it
13
CHAPTER
IL
of Products
How
By
is
giving
Hoiv
is
it utility.
the utility
of a thing
the cause
of its having
a value ?
to
be found
who produce
These, on their
it.
from
it
at in
producing
of the thing
sition
is
it,
it
are
iji
from those
including
established
tlieir profits.
by the
The
value
But
value
who
there are
as, water.
many
things
of great
utility^
and no
to
produce tliem.
If a
14
it,
Thus
things
because
all
sell
it
tlie
men
things that
one would be
it,
If all
But
to us, are
Human
They
ty they
then
utility,
the facul-
is riches.
we
chapter,
We have
can spare.
how money
in
exchange
facilitates this
appear
exchange.
of reason
call
hut
because you
artificial jiowers,
You do
to
for
and
we want
we may
utility
Jio utility.
of these products,
is
so to the eye
is
15
of
man such
to
is
he
as
is.
as imperious as hunger.
We cannot judge
The value
of
is
is
enough for us
give
He
them a
to give
them utility
Now that is
value.
in his
eyes in order to
what we
call to pro-
products.
diicey to create
Give
to
utility,
product of
One can
it
you
it
a value
that
is,
you make a
create wealth.
Incontestibly.
/ thought
He
man
that
which regulate
natiu'e
One
in
may
to
be found
in the
same manner
many of these
values,
is
as a
a rich
16
CHAPTER
On
^OU liave
to things
duce
how
me
Production.
that to
utility
is
produce
given ?
How
is to
are
give
we
utility
pro-
to
In an
may
told
III.
infinity
manner of
we
pro-
ducing.
TThat
is
ofproducing
It consists in collecting or
men
have,
means of
by
seeds, induced
and
and by
They
What
utility is
ready made
fish^ or
to his
given
to
it
a miner who
collects
minerals ?
ON PRODUCTION.
He
renders
the sea,
ket,
is
we
it
As soon as
useless.
can
of no
utility
makes
it fit
tracting
it
from the
is
in
warms
in
it is
vain
while there,
it is
for these
it
In like manner,
neither
it
it is
while
fish,
The
for use.
fit
17
purposes.
He
by ex-
creates,
it
has
when
extracted.
How does
The
are not
corn
The mdustry
aii",
all
JVhat
under the
It is
the
same
the second
It consists in
manner
giving to
by
first
it,
composed,
with
is
com was
form of
by
tlie
oj"producing ?
new forms
the
it is
made
that
to
we
undergo.
when made,
metal of which
it is
formed.
(3)
is
is
give to
is
The
made
The
ON PR0DUCTI0^3.
18
of that
last
What works
try?
It
quisite
wooden
work executed by a
What
is
the third
hundreds of workmen
in
vil-
and by
stall,
a vast manufactory.
manner ofproducing?
it is
where
it is
of greater value.
This
is
to another
it
the
work of
Cojn?ner'cial Industry.
"which
It
soldjust as
is
it is
it
be used
place, at least,
and
whom we
where
where
dearer.
its
production
Wood
is less
is little
its
have just
it
i^^ants
cannot
exceeds the
it
of a product
from a
as
bought ?
spoken
utility.,
so far
it
it is
some-
ON PRODUCTION.
times
left to rot
considerable
this utility,*
however, becomes
Hides are of
city.
19
is
very-
transported into a
little
same
production
is
augments
their value
What
is
by
and
all
theii"
where
the
their
much more
Commercial Industry,
multiplied.
in bringing
them,
Industry ?
more
precious, and
reach of those
within
grocer,
tlie
to another,
who want
it
It
it.
it
whole beasts
to re- sell
by
ana-
it is
within the
includes also,
detail in the
where
Thus
in gross, to re-sell
the
it
in
them piece by
piece, exercises
Commercial Industry.
Is there not great similarity
modes ofproducing ?
The
in
one
*
We
greatest.
state,
They
all
and delivering
that,
it
in another,
by the words
^utility
in
of things,
which
it
we mean
man
thinks
ON PRODUCTION.
20
has a greater
all
reduced
here,
utility
to
one species.
If
we
distinguish
it is
our distinctions,
them
:
but
notwithstanding
all
ficult to separate
villager,
he
who makes
carries
them
baskets,
to market,
is
it is
a manufacturer
tliat
augment
their
when
he becomes commercial.
that
we
we
duce wealth.
For
may be
called
may be
called
CHAPTER
On
the
Operations
common
to
IV,
all the
Species
of
Industry,
I HAVE just
An
an enterprize
in
it
may be,
is
world he
is
ful thing.
Tf^hat do
you understand by
tlie
world?
I understand the laws to
this is
a physical law.
Give
in
me an example of the
blacksmith,
iron of which he
who
makes a horse-shoe,
is
the undertaker
22
of a manufacturing industrj^
that physical
who
it
law
in the
who
avails himself of
same manner,
the merchant,
fits
beyond
seas, the
What
world?
They
by
are
the rules to
kind.
Give me an instance
in
He
consults
may either
enable
him
industi'y, or furnish
Some
ducts.
man, others
which we
human
to the
He who
live.
vanity, rims
little
among
us,
in
in a proper
wear
his pro-
He would
who
did not
hats.
Who
are those
who study
the laws
of
the physical
world ?
Those who
and mathemati^
such as chemists,
23
naturalists, geometri-
&c.
cians,
I understand
politics,
&c.
dustrious'^
Just so
other,
ducts.
is
we
tries that
It is there
only that
we
mass of acquired
Are
the learned^
No.
There are
also
men ?
workmen under
the direction
When
workman
account,
carries
on an enterprize on
and undertaker.
his
is
ovm
both
workman
24
CHAPTER
On
No
\
"
IS it sufficient Jor
the talents
his
an undertaker of industry
judgment
have
would be exercised
materials on
to
He must
upon nothing.
V.
his industry,
and
into effect.
it
and
this
value
I thought
materials
The
is
called capital.
that capital
and
was a sum
utensils ?
moment
in
which
in the
exchanged
vSec
Chapter
I.
it
it
is
has that
be again exchanged
'
and not
oj' money,
for
exchange
for
money, which
cloth.^
The
values
25
employed
which we
save, in order to be
are, in the
sively
exchange
use them as
money
for
capital,
and when
we exchange them
as capitals,
we
desu'e to
You say
tJiat
capital is
of things
to say,
man : a
capital
is
is
is
of
move-
able ?
No
moveable or immoveable.
human industry.
is
a product of
may be
A house
may be either
this account,
improvements of
this
considered as a great
in tlie
makes
of industiy.
Are
agriculturist ?
Yes
Tell
which
me of what
It is
composed of
which may be
(4)
the capital
that is destined
of a manufacturer ; a
consists.
first
material,
wool, or silk
also
26
his
o\iTii^
If
is
of
workmen.
Because the
and, in
the value
how
is it
that
it is
not lost ?
which he trades
and
this
merchandise, augmenting
increased
How does
the value
By
all
by
his profits.
of his
capital
an inventory
that
that
he possesses,
according to
its
is
in
knmv whether
increased or diminished?
is,
by a
detailed account of
cunrent price.
is
valued
27
CHAPTER
On
I SEE
the Formation
tliat to
It
but
must be
created
of Capital,
is,
how
is
may
be acquired by study
capital to be
created, or
and
procured
it.
it is
necessary to begin
riches^ indus-
I can conceive
trious talents
practice
VI.
it
ought
to
altliough this
be developed
hereafter.
Consumption
is
We
utility that
it is
cannot destroy
it
but
we
it
and, in
can
28
destroying
Avhat
is
we
its utility,
destroy
is
That
value.
is,
its
proposed
in
produce another
is
What
of value.
doing so ?
procure an enjoyment,
Either to
clothing
things
or else to re-
The consumption
alue.
an enjoyment
Reproductive consumption
it
of food or
is
easy.
Li what does
it
consist ?
It consists in the
produce another
lue, so as to
in place of that
which
pay
Thus
the agriculturist
same manner
it
as he
in
fit
and even
if
it
still
who sows
suffi-
in the opera-
com
a grain of
He
it
in
who
eats
shall
he employ
feeding fowls, he
employed
is
it.
this grain or
destroys
many
grains
it
This
is
profit, the
value
called ^pgductive
cojisumptlon.
Every
thing that a
his
own use
is
No,
not
all.
Wlien
eatables,
di-inkables,
men who
or
are at
in
It is
29
so
it
much
becomes a
more
the
repro-
repro-
have created during the consumption, exceeds the value of those tliey have consumed.
from manufacturing
industry ?
He
consumes,
also,
Thus
sumes, reproductively,
oil,
soda,
a soap-maker con-
wood, or
coal, caul-
in
commercial Industry ?
warehouses
is,
which
sort.
He consumes
as part of his
to
that
is,
be sold.
All these undertakers of industry reproduce witli
30
loss,
which they
inferior, equal,
have consumed.
What is
the effect
That which
is
of these Jacts, as
respects capital ?
you
will, all
in proportion as
It is
to the nature or
(their nature
composed
capital is
of these values
my
employ
capital, if I
friends
it
but
it
it
in maintaining
workmen who
my
are
my
capital, if I
use
employed on the
me
its
value. In
of my capital,
sume
but
change
in
to treat
make cakes
to
no part of
it
if I
it
exchange
it
for products
for a value
which
is
to
my
which
capital,
I con-
if I
ex-
my hands.
How is capital amassed ?
Capital
is
augmented by
all
that is
withdrawn from
which
is
Can
reproductive.
Without doubt.
amassed be consumed?
capitals be
Yes,
capitals, that
values
is,
be
mean
we
lent in
is
it.
may be
by exchange
or
transferred
by succession
transferred or lent,
Thus when
themselves.
on
value
is
Ca-
from one
and may
it
lent,
but
in
hatever
\\
and not
in the things
although
These
for production.
mer-
thus accumulated
to another
used
it
silver, or
after,
31
he really lends
credit
it is
to
be returned not
in
way of capital.
It is
mer-
Land
is
made use
of in the
an
but
is
from
way
of lettmg) as
capital as
it
is
not a
by accumulation
and
may be transmitbut it
capital may
It
human
increase
use,
like capital.
is
production,
incapable of
24
to snatch
to
them,
which
it is
economy
to inquire
It
shews only
is
that land,
of any one ?
to say, of be-
duction
from
it,
for if land,
is
to
be derived
some
one,
no
one would take the pains, nor make the advances necessary, to obtain those products ;
soil.
accumulation and
,^
much
as
it is
it is
its
its
For
much
tlie
less to culti-
same reason
it
is
the only
means of inducing
its
productive employment.
from
capital, inas-
of extension ;
extension.
result
and
how can we
same time
the land
capital, so
employed,
There
in
is,
many
in the
itself.
is
It is
manufactories, in
all
house
to live in,
the possession of
selling at the
ings
upon
The
we
capital
the utensils
are
and
in the
tliat
it.
other capital
is
terials
locked up
exchanged a moveable
at the
is
profits of capital
land.
JBut
It
33
There
that the
ma-
(5)
easily
exchanged,
an^
34
CHAPTER
Manner
Ofi the
in
tablished, ajid
JVE
The
them
ed
to
for
the Charges
of
utility
given
after, to
and when
to
things
honv
which
we
that va-
is
constitutes riches ?
be wanted
this
is es-
of Production.
be sought
;
utility is
amount of which
utility
them
VII.
price
causes
a price
is offer-
to de-
is sufficient
their production
would
cost,
ey will be produced.
'^
Of what
ofproduction composed ?
What
They
creation of a product
tal or
human
industry
viz.
To whom
to
for the
the capi-
the land
it.
name o/'producers
To
all
who
duction.
<^
those
35
and the
Why
Because the
capital
who
furnish tliese
in the
means
effectually themselves.
it
That he
contributes doubly
first,
by
but although
by one person,
when they
studied^n order
his industry
to distinguish properly
are
it is
be
to
what belongs
JVhat
is
It is the service
production
gcrvice rendered
by
capital
by industry
the
cause of the
services.
What
is
it
that limits
demand?
The property
sire to
to the
demand
be paid
for.
for
is
de-
any useful
There
Mho
thing,
if
it
^vere not to
36
that
which
it is
this price,
its
accompanied by the
which,
same time
at the
to
is
in
offer of a price
and
production.
Then
pay
the
pnce of
the charges
the product
not
is
of production?
and the
The
pay
to
the price
the clmrges
of the product
ofproduction
of the product to
Can one
which
let
is
fall.
when a man
^vill
paid for
it,
it is
more
Yes
is
lets
is
called interest.
is
When he lets
When he lets out
called xvages.
called
2i
farmer and
^
the price
is
called rent.
What
time, talent,
and labour
to
Who
is it
or the land
It is
of the
of the
others ?
an undertaker of industry
who
unites
all tliese
SJ
wages, the
interest^
lias
He
loses, if
dence.
who Jiaj^
to lose
^iyen
or
him
if
he has
their confi-
38
CHAPTER
On
the Profits
of Industry,
isy
WHAT
ital,
is
the source
VIII.
and Land;
Capital,
that
Incojne.
and land?
It is
ill
co-operation.
pays
The consumer,
the charges of
all
its
in
by
their
buying a product,
production;
that
is,
the
and the
landliolders),
who have
contributed to
its
production.
How
By the
to
one another.
made.
among
is dis-
which
it
who
let
him
the land
tlie
That
fed.
a profit received
is,
If the
by a
When
The
means of
already distributed.
and he pay
and
this value,
If his capital
interest for
it,
lent
it
in
woollen draper,
who
is at last
profits
by the
the consumer.
Thus
was accomplished,
buted among
its
we
and he
which he makes
the value
distri-
tlie
producers,
to
one of the
is
by the
among
that
is
different producers.
In thus tracing
ever,
which
profits,
reimbursed
sale
by
advance the
him
to
at the
also the
be a borrowed one,
he pays also
who
productive
advances
his capital,
i^Jgio-
reimburses
it,
of his industry.
it,
profits
farmer
him
39
so that the
capitalists,
ig-
man
is,
who have
it,
contributed to
its
formation.
sumers ?
40
duces.
it is
pro-
necessary
productive capital.
JVhat do the
profits^ distributed
among
society^ be-
come ?
They compose
the incomes of
compose the
What
is
It is the
all
the individuals
income of
total
is
sum
of
all
Are
the
The
sum of all
that nation is
i7icomes
Some
of
income received
the portions of
by
income
receiv-
the individuals of
all
composed*
them
who
that nation.
the portions of
which
nation,
nation,
which form a
are so
some not.
a capitalist
who
A landholder who
result
and
may
sti-
lets
at fixed periods.
The work-
his
But
the grocer,
who
that
he
sells
sells,
sugar
a small
all
41
his income.
Are
incomes, or portions
in
money ?
The manner
do with
in
The com,
the subject.
butter,
form part of
his income.
If
The
of the landlord.
Whether
this
he that owes
in order to
ance.
in his
own
family,
ui
essential thing
is
it,
It is the
in
money,
is
of no import-
As
the incomes
of
individuals are so
much
when
better paid,
it
appears
to
the
more
and as
their
me
of
Yes
so
ai-e
but
when
the products
we
When
is
in-
only nomi-
can, witli an
(6)
42
which
in-
comes.
In what circumstances
is this
advantage experien-
ced?
It is
ducts
fall,
Then
the pro-
takes place
when
been brought
new and
into use,
is
what
43
CHAPTER
On Wages,
WHAT do
interest
Interest,
and Rent.
oj" workmen,
That he who
lets
from
IX.
He
renounces them
undertaker of industry,
in favour of an
which
is
what he pays
What
for them.
The abundance
above
all,
Why
is
for there
capital, in order to
it
of wages ?
must be
land, and,
employ workmen.
necessary to maintain a
cording to the custom
workman and
of the place
Because wages, by
wfmt
is
rising higher,
encourage an
in-
ON WAGES, INTEREST,
44
crease of
more
workmen
this occasions
Works, which
such services to be
demand
for
them.
demand
for
them.
What
The
of
interest ?
expressed by
ought
Explain
really to
this
If you lend a
rower for an
by an example.
is in this rate,
the bor-
(more or
parts.
less) to
two per
cent,
On what
On this,
which
you
is
is
it
at four
to lend the
on a very
same
mortgage,
safe
less.
The
run.
of
the parties,
of interest,
properly so called?
AND RENT.
The
4f5
when
those
who borrow
because then
many
imdertakers of industry
employments of
more
the
capital offer;
likely to use
demand
which
is
and
The
rate of interest
is,
of capitals requiring to be
circumstances
which these
for capital,
increases also,
for
may
Contrary circum-
much
as the other
When you
mean by
in-
of money ?
By no means
mean
values destitied
by
their pos-
them
differently.
liV.
chap.
8.
in
my
ON WAGES, INTEREST,
46
them back
months notice
three
you
thing, that
lent funds to a
or,
to
merchant on con-
which comes
same
to the
way,
you
if
more convenient
to
you?
Without doubt.
Then
if
readily for
They
they be in specie.
si\m of
all
are
still
more disposable
They
sum
is
if
that the
a very different
it
may
/ understand so.
Well!
it is
sum
the
sums of money
hand
when
to another.
form of a certain
for
mstance
which
is in
disposable capital
may be
in the
but
if
circulation,
rate
has no influence on
it
either.
AND RENT.
It
is
47
of money
By no
means.
Why is
it
and use of
What
It is
is
to
formed of the
are
legal interest ?
by the law
minor
which
ideas
capital.
capital has
of money
enjoyed
whom he
it
is
in cases
as
in the place of
bound
it
has
the holder of a
an absentee, or a
to account.
when
where
tions.
What
The demand
the
'
'S
number
be
to
ber to be
/fhese
is
let
of land?
may be
It
observed on
this
because
necessarily limited
of capitals, which
may be
not necessarily so
number
applied to
tliis
industry, are
of
below the
to
real profit
soy on
is
of land.
this subject ?
to the pro-
48
fit
of land
is
obhged
for
to
when
it
exceeds that
profit, the
farmer
and
is
no
of
longer completely indemnified for the employment
those
means of production.
49
CHAPTER
On Incomes /bunded on
What
They
is
X.
immaterial Products,
express a
utility
is
not
Explain
When
this
by an example.
a physician
visits
sum
The
the utility
may be
It is
is
physician receives
utility
but here
it
come.
The
is
analogous to
He
applies
has collected.
(7)
ON IMMATERIAL PRODUCTS.
50
products ?
There
are a great
number of them.
They
include
The
of the government
down
priests, receive in
exchange for
their
What
As
of these fees ?
political circumstances,
they are
duced.
of immaterial products.
An
are necessarily
consumed
at the
same
can be preserved.
What consequence
That
do you
rendered by these
ON IMMATERIAL PRODUCTS.
the consumption of
different classes,
pHed
that
it
51
them
is
multi-
mass of
wealtli.
It
placemen, lawyers,
soldiers,
whatever
may
otherwise be the
utility
The
services
moment they
are
performed.
They
live then
They
live
woollen draper,
pays for
is
commodity, pays
sumes
amusement
a dealer in
it
for
the instant
it
it is
An
The
delivered to him.
pro-
when
change, like
the
all
same nature
it,
the price
others, followed
as
all
an ex-
by a consumption of
improductive consumptions.
the fruit
of industry
alone ?
to acquire
when
this
ON IMMATERIAL PRODUCTS.
52
One part
of
tlie
pay
ficient to
When the
exercised.
to
pay
of that product
Are
sult
there
interest
to
and another
in this capital,
is
not suf-
two agents of
more
and
scarce,
moment when
the quantity
is
re-
of capital alone?
Yes,
if
moveable
(household furniture) be
effects
When
if
they be kept
up
to their
consumed.
The
plate
which
is
used
in
it
not impro-
It is
but
it
does
changed
for
material product
consumed
This service
at the
moment.
It
to
be applied
to another
employment.
an im-
The
its capital.
capital is a capital
is
it
ej:-
which
Are
ON IMMATERIAL PRODUCTS.
53
result from
there
land?
Yes
den,
is
capital
devoted to
its
exchangeable product.
arrangement.
It
has no other
54
CHAPTER
On Consumption
WE home already
the dervelopment
It
seen
ofits
in general.
what
consiitnption is
must be remembered
to,
exists
The
we can
create
it.
not to
de-
To consume
it,
of be-
Then
which
in
utility
it
to
stroyed,
is
we can no more
by destroying its
value
always
consume
that to
by de-
finish
its
ing useful
effects.
is
XI.
is,
is
whose value
not,
de-
is
no longer forms
A product may be
consumed
rapidl}^, as
food
or
ON CONSUMPTION IN CF.NERAL.
slowly, as a house.
It
may be consumed
55
in part, as
coat,
sumption
is
still
a certain value.
retains
effect is the
same
it is
riches, con-
a destruction of wealth.
To
or a
new
sumed
profit.
In the
first
case,
it is
an improductive,
diud in the
new
product ?
That would be a
sacrifice witliout
compensation
folly.
is,
then
of a system^
the tendency
purpose offavour-
ing production?
bum down
city,
for the
purpose
it.
Develope what
said
on production,
ON CONSUMPTION IN CENERAl,.
56
0'^hat have
you
to
conswnption ?
into
shall hereaf-
tv^'^o
What
What
for
its
and of families.
we
men whose
for
its
association forms a
community, a pro-
vince, or a nation.
Are
tlwse
ture?
They
consumption
other
that
same
One
same.
nature,
set of persons
and
their
cause the
in
is all
What is meant
the difference.
a nation ?
It is tlie
sum
of
tlie
values
a\
consumed by a
nation in
public.
Do
Yes
so
for
many
ON CONSUMPTION.
57
tively, as
as they can be
employed only
Do
you comprehend^
in the
consumption of a nation^
Yes and
;
comprehend
receives in return
hend
in its
in the
in its products
same manner
tliat I
which
and
results
tliat it
it
compre-
Does a
whatever
uses
it
in its productions
from
it.
produces ?
for
it is
our interest
demanded and
:
If a
The
it
values,
capital,
capital,
it
accumidate values,
may be consumed
in the
it
form
and maintain
same proportion
as they are
for
if
the
(8)
diminution of capital.
cai:!ital
If the
ON CONSUMPTION,
58
Shew me
the application
of
these truths by
exam-
ples.
Take,
even a merchant.
in his
to say,
suppose that
his enterprize
on the
sum
value to a
all
first
in
In the
forms perpetually
and although
we may suppose,
in the
amount
to sixty
destroyed
thousand pounds
because a value
again
all
amount
that if
to a
sum
together, they
might
all
If
the
When
and the
all
capital
is
there
is
its full
loss.
ON CONSUMPTION.
59
and productions
for sixty-
same
at the beginning.
clear.
If he
and
at the
if
But
if,
capital of
at the
instead of having
twenty thou-
beginning of the
expended improduc-
expended improductively,
ductively,
and that
it a\ ill
will
have been
in
in
process of
/ conceive that.
You perceive then,
capital
tlian
twenty tiiousand
ON CONSUMPTION.
60
pounds, the
may have
total
been
much more
considerable ?
Yes.
That
this
entirely
consumed; and
may
be,
that, never-
augmented
it
Yes.
pened
in
to a single individual,
same nation
all
you
others, have
by those
produced a gene-
will find,
which had
by a second example,
at the
commencement
of a hundred millions,
and
that a nation
in
a year
producing three
of values,
and improductively
tw^enty millions
or rather repro-
/ grant
it.
In this
last
supposition, this
little
nation,
which
ON CONSUMPTION.
will
have consumed
theless,
values,
which
will
among those
their affairs
nomy.
its
ent forms
ed
all
61
individuals
who have
diifer-
conduct-
62
CHAPTER
On
XIL
private Consumption.
WHAT difference
is
Ex-
Expense
and
to
is
as, in general,
remark, that
A'alue
in
consumed
It is,
when we buy a
however, proper to
product,
want
we exchange the
of which
value of a handkerchief.
We are
still
form of a crown.
only
when
we
We
we
only
we
before
do not begin
to lose
when we
as rich
had
we are
the consumption
poorer by a crown.
It is
is
finished, that
we
are
That
is
ON PRIVATE CONSUMPTION.
why,
the reason
ter
in the
and economical
middle ranks of
talents of the
life,
63
the charac-
woman, who
directs
What
preserve fortunes.
It is the talent
may be
sumption
and according
What
to the
must be
which we
prohi-
are placed,
income we have.
We are
avaricious
when we
deprive ourselves, or
we might
Is
it
pennit according
avaricious not to
lo
our incomes.
in-
come ?
No
for
it
is
that
made
we can hope
to
Do we
do any wrong
to society
by thus amassi?ig a
it
will
produce?
On
duals,
add so much
indivi-
by
is,
and
employed reproductively,
every person
to his
ON PRIVATE CONSUMPTION.
64
means of deriving
Are
not some
others ?
Yes
faction,
which
tliey
which
satisfy
occasion.
Wholesome
ings, are
Such
satis-
of the values
consumptions more
fitting
Mure
habitations.
than the
first
What
from the
last.
sumptions ?
sort,
although they
may
cost more.
ted consumptions ?
will
one.
the
article
When
work of
same time as
sumed
a pair of shoes
the shoemaker,
months, which
made
which
w'lih.
is
bad
leather,
used up
tlie
in fifteen
been good.
is
in the
is
con-
it
The
if
bad merchandise
costs
ON PRIVATE CONSUMPTION.
as
much
ous.
as that of good,
which
is
65
more advantage-
What
them
in proportion.
ivoi'st re-
gulated ?
by punishment.
(9)
66
CHAPTER
On
If
HAT do
sembled
in
Public Consumptions.
you
Those which
call public
made
are
utility,
What
consumptions?
men,
public
XIII.
which
asIt is
for
The payment
edifices,
What
lic
to pub-
expenses ?
That
the public
is
viduals.
What
There
ON PUBLIC CONSUMPTIONS.
number and
fix the
and
salaries of the
pubhc functionaries,
The
free competition.
The
be.
that
third,
ed by personal
it
direct
than individuals
works executed
to a
would
open
who
67
for the
interest.
/ atn inclined to
by
from
it,
do not impoverish
They do
impoverish
it.
it
the
same as
private con-
sumed.
The money
without
But when
is
A value
equivalent.
nity,
is
its
tliis
is
money
is
It is in virtue
bution,
and
same
amount of
the
values, the
one
is
destroyed.
at all
it is
that contribution.
is
agents,
never returned
its
also the
Of these two
it
of a purchase in
delivered the
commu-
not gratuitously.
which
this ?
made
consumed,
that
the other
is
to say,
it
is
ON PUBLIC CONSUMPTIONS.
68
by an example ?
Illustrate this
We will
there
in
money
a value equal to
is
The
munity.
agents of
government, with
tlie
for the
army
this is
this
another
had
raised
by contribution
will
his revenue in
It is the
lost.
his expenditure
who
but
it
be consumed and
with that of a
paying the
in
it
the
same case
community
back by means of
which
he has consumed.
But
it
has draxvn
from
it
one value
value equal to
it
it
It
in contribution,
in services
is
which
it
in this
The
exchange.
Is not this a mere distinction of words, and
to
is
a restitution ?
not the
ON PUBLIC CONSUMPTIONS.
Not
When
in the least.
workmen,
wages a
it
receives from
real value,
them
which
in
exchange
is their labour
69
to result
for their
a value
from
this
The workmen
result.
Why ?
The government by
this operation
has not
workmen.
If
distribute
it
away from
takes
workmen
it
on the
other, the
either directly
by employ-
the contributor
them on
himself, or indirectly,
by means of
his consumptions.
When
same
a government consumes.,
situation
it
be worth
What
noticing:.
or, if
you
is
it,
will, the
which
it
expenses
made by
society,
otherwise than by
it.
expenditure ?
When
ON PUBLIC CONSUMPTIONS,
70
it,
of monuments
fee
contributions is
is
employed in the
ofsociety a
sacri-
witout compensation ?
Precisely
it is
good govern-
The economy
of nations
is
useful re-
exactly the
same
71
CHAPTER
On
XIV.
FROM whence
They
pert)'
These
perty
nue of which
public.
When
felling
when
last
case
Who
The
is
it
consumes
it
consists of forests,
capital,
very
is it
it
for the
lends
it
let,
advantage of the
it
sells tlie
at interest
annual
but thi%
rare.
that
individuals
whom,
in this respect,
we call
con-
tributors.
Where
they
pay
They
QN PUBLIC PROPERTY.
72
belong to them,
which comes
or,
same
to the
thing,
the fruit
ofthe annualproductions ?
pay
the taxes ?
their
capitals to
When
up one of
me an example
in
in this
And
sufficient.
their
society.
dis-
man whose
If a
laconic
is
bound
come
to
fore
an heritance, and, as an
pay impost,
heritance.
.
to
The
it
capital in the
&c. In
tiibiitor, is
all
tion,
is
w as
at law,
in the
so
his in-
tlie
bonds, secu-
by
the con-
much capital
hands
may be made
withdi*awn from
employed, and
it
Similar observations
he be
no longer so considerable as
of the deceased.
heir,
devoted to consump-
in
cases where the profits are small and the impost con-
AND TAXES.
many
siderable;
contiibutors
cannot
that
in
case
Yes
^\
could be paid.
If there
be some
of them
that the
Because
at the
by
same time
means ofproduc-
run ?
that
some
individuals
saving.
Do
pay them
much
to
idea of satisfying
tlie
tax gatherer.
But
if
the impost
produce
it
does
is
the
more
In short,
if
(lb)
^vill
ON PUBLIC PROPERTY.
74
it
raised
by
the impost,
to increase
is
since
what
is
Thus
any saving.
it
may be
seen, that
of being favourable to
Which
this
it.
purpose ?
Sometimes they
at so
much
are exacted
nue
arising
which
the
and
fertility
of
soil.
Sometimes, his
profits are
valued
from hence
tlie
demanded,
Are
name of
direct taxeSy
contrir>
hutor ?
is
laid,
For
this
When
and
chandize ?
in tvhat
AND TAXES.
They
7S
which
and
mines
silver
in
A portion of
Mexico.
of these merchandizes
is
levied at the
moment
extraction.
die value
at the
of their
moment
which
is
and
in the
" Octroi,"
sometimes
at
the
moment
of consumption, as for
Does
the atnount
No
at the expense
least in part
the creation of
Do
it
in
assisted.
the burden
from themsehes ?
and a
rise
tion of a product
of
its
by putting
consumers.
it
The demand
its
price
falls.
The
price
of
on
it is
lessened.
and
is
laid
tlie tirades-
ON PUBLIC PROPERTY
76
men who
sell
to recover
pose
it
would be necessary,
that the
same quantity of
demanded and
and that
sold,
voted to
it,
which
become dearer
it
The
not possible.
is
their
cotton goods
and
this
TVJmt
That
whose
the impost
profits,
i.
is
from
whose incomes
e.
this ?
lessens
it
partly
and
purchase
to
What
That
is
making
more valuable.
draw from
not
for
total
in price.
with respect
takes place on
contributor
sells.
ducts dearer
at the
all
tax
is
laid
any other
is
levied ?
which the
sell their
pro-
products dearer.
to
the merchandize
when a
value of
it?
all
its
manufactured
AND TAXES.
77
article
If a tax
it.
be
laid
on
account
for
sell
In order not
is
make
So long
compelled to pay.*
rentof land,
who
to
the effect
of
it is
it
at the ex-
it
from
as tlie tax
market and
tliis is
tlic
the
net profit, or
it:
territorial
products which
When the
come
impost
is
to
ex-
surpasses the net produce of the worst lands, and hinders the
improvement of others.
Thus
territorial
products
become more
rare
the population
rial
as
them ?
to consider
this
A land-
themselves.
jitiU
lace.
witli
pense of those
cessive,
his
to deceive ourselves
how ought we
of society.
As
his
his neighbour
taxes,
who consume
lace, t]ie
pay ?
to
An impost laid on
portion
products;
is
if less
veloped here.
much.
gets
down
it
It is
little
corn,
it is
For
this reason, in
ON PUBLIC PROPERTY
78
the
first,
in not
taxes
and every
class of individuals.
sustained
while
it
by
but which,
vided
an expense
It is
among them.
its
amount
is
not di-
What is
By
to be
those words,
which serves as a
sense,
ties
sion
is
is
Brandy, in
this
merchandize
mand of a value
is
is,
Wlmt do you
de-
The
true subject
whatever be
tlie
of taxation
the brandy.
when
these incomes,
augmented.
concludefrom that ?
Thus the
AND TAXES.
That every thing which tends
79
It is
from
amount of th taxes
the
the rate of
Are we
them
country prospers,
justified
i?i
declines*
it
viduals,
Has
the
natiofi ?
of
ti'ansfer-
of revenue ?
for
beyond
its
value
it
to
be paid
amount
to the
whole of the
charge for postage, but only to that part which exceeds what
it
would cost
if this
service
was
left
open
to free competition.
The
profits
lotteries is of the
able on
many
same kind
accounts.
but
is
much
less justifi-
80
CHAPTER
On Public
XV.
Loans.
To
How
tract ?
They pay
either
it
by laying on a new
tax, or
sum
by
suf-
interest.
which the
interest is
Yes.
Who
Individuals
who have
composed of individuals,
lends to itself?
it is
ON PUBLIC LOANS.
Yes
it is
What
The
them
that
is
who
lend to the
government.
its
effect is
Do
riches P
81
But
transfer.
generally
quence of
consumed
you
if
in conse-
produce an impro-
Would not a
No
lay
it
the individuals
out, not to
to government,
in the
who
consume
it
it
it.
lent
lent to tliose
who
em-
If
it
hands of individuals ?
it
capital w^ould
have
by public loans ?
It is
diminished; because
consumed,
carries with
it
all
tlie
capital
the income
aa
hich
which
it
is
would
But
in this case,
(11)
the individual
who
lends^
does not
ON PUBLIC LOANS.
82
lose
any income,
since the
Those who
who
lose,
interest
does ?
who pay
the
pubhc
creditor is paid
hand an income
But
no portion ofincome
is
appears
it
and
lost,
to
me
it
has
consumed.
You
will
are in an error
how
examine
and
to convince
you of it, we
An
which
it
was
engaged.
already, or in
have afforded
five
to the creditor
this
it
is it
is
an income of
paid ?
own purpose
these
to
fifty
At the expense of
pay the
fifty
nevertheless paid
is
in
employment would
societ)\ It
but how
Con-
from an employment
which
Supposing that
in-
was
creditor.
In-
in society, tliat
fifty
to
ON PUBLIC L04NS.
he has been compelled
to
pay
83
namely, the
last,
which
is
transferred
from the
conti'i-
TVhy
there
is
producing
fifty
thousand pounds^
What
Sometimes
tal lent,
interest
it
which
of its loons?
it
who
viduals,
repay
itself to
the
means of recover-
of the former.
Sometimes
the lender a
it
certain
borrows, by
way
it
stipulates a pure
number of
years,
by instalments
See
in
my
life interest.
Sometimes
and
it
in a
or a reim-
at periods
which are
lot.
2d
edit,
book
iii.
9.
ON PUBLIC LOANS.
84
Sometimes
negociates
it
The
receivers of contributions.
by discount
on
bills
loss
agents, the
its
which
suffers
it
it
receives.
Sometimes
it
sells
money
furnished.
The
price of offices
is
office.
name of
security.
All these
modes
which
are
Has
consumed
employment
dehtSy
capitals
means of paying
its
pay
the
it
has promised
is
called a sinking
to
interest perpetually ?
Yes
by means of Avhat
What
is
Wlien
a sinking fund
a tax
is
interest of a loan,
laid
it
is
upon
what are
little
this
heavier than
excess
buy up
at the
pay the
the people to
laid a
fund?
it
is
confided
management
e\^ery year to
or annuities paid
by
die state.
As
the
is
same
interest
interest
is
devoted to
ON PUBLIC LOANS.
this
use
which
in tlie
it
first
the
increasing action,
from
if
pubhc debt by
its
would extinguish
it
and
if
a perpetual addition of
buys up.
This manner of
progressively
with
sufficient
this object,
ly into the
extinguishing
rapidity
instance,
85
market more
up by
bring annual-
fund
S6
CHAPTER
On
XVI.
things which
no property ?
composed of
is
how many
that
is,
riches
where
no property.
ranged ?
Into two grand classes that which constitutes stock,
:
and
that
to the riches
which con-
income ?
stock, they
upon
it
Of land and
1st.
i\re
may
our stock
87
consist,
we
acknowledged proprietors
Of capital,
2nd.
which we de-
or values produced,
vote to reproduction
Of faculties,
3rd.
which we employ
What
for the
same purpose.
That we can
two
kinds of stock (our lands and our capitals) but not that
of the third kind (our industrious talents).
can
let
out to use
life
property,
is
What
all
That we
That the
last
us.
to observe respecting
them?
the production of
demand which
which
tal,
is
The
is,
values.
demand
and industrious
and
their value
of those to
whom
this
talents
value
this
is,
demand
makes a
establishes
they belong.
88
why have
Because there
faculties
and
tliere is
no demand
is
no demand
for
them, because
exceed
wants,
all
to all
of
are
this
fact
of products ?
for assistance
and
that
we
much
It is for
do not cost
so
obtain
in hot-
houses.
t/rnt is,
we possess
ai'e
to
add to
are greater
much
have
this subject ?
we
possess,
but these
and
in
if
income,
may be
with a certain
I
sum
In
in land, in capital,
am
in
want
Thus
value
my
89
will nevertheless
be as
The
is
rich, if she
can procure
all
the
is in
obliged to pay.
all
the objects
to
be able
we wished
to
to procure for
consume.
the values
we possessed,
if
the value
to
pay
for them.
We will examine
12)
thing's
90
CHAPTER
071 the
GIVE
me some
you wish
XVIL
you
real
If
to
price of things.
What
The
price
What
The
we pay for
do you call
value
Give
me an
A potter
sell
price ?
a vase which
is
worth a
to sell
shillings,
two vases
is real.
it,
to
and
if
the potter
sells
If the price of
shilling.
two
money with
be obliged
in coin.
this thing,
he
money or
example.
is in
for a shilling
its real
we have
which we purchase
a thing in
for
these
by the
shillings
only nominal
is
91
He
has
both
in
ever
money which
preciated
from
No
that
the
his
fall
or
from a
which
is
to
two
shillings?
which
is
income
arises
which
let,
stipulated to
He who
of the money.
de-
to
is
merchandise in
be paid
that
is,
when I am
I be
I before
loses.
that if
buy a loaf
in
two
shil-
to obtain
two
to
shil-
give
two vases instead of one, then the bread will luive really
become dearer ?
No
not
if
money, have
riot
have fallen
to
half their
if
expenses of production
that
is,
if
92
found to
create, at the
we know,
(which consists, as
interest of capital,
It
is
and
profit)
of the workmanship,
in the price
ofproducts ?
Just so.
of production
which a product
is
one
is
fallen
half,
of production.
Explain
If,
this
by an example.
by means of a
make
a pair
on them, he who
raises wheat,
can obtain
if
pounds of wheat
ings, he
would now
in order to obtain
sell
we
a pair of stock-
It is the
to sell thirty-
would have
to give for
tlie
thirty-six
pounds
required.
are occupied.
It
may be
said, that
else, obtains
it
when an
arti-
who produce
it,
composedofthe sum
of society are
which it possesses:
NOMINAL PRICE.
it
appears tome
93
sum of the
of its
does not
values
riches.
on
fall
tliat
much
The income
on two
same
for the
maker gains
as
of so-
much
at six shillings.
But,
"
when
products
same
fall
fail,
society
take^wplace on
is
all
really enriched.
If
tlie
all
is
the
any part of
rich as before,
its
to a great
it
has happened
at,
some a
things.
fallen
tenth,
from
some a
and even
in
otlier
articles.
To what
cause
is this to
To many causes
^
intelligence
owe,
and industry.
botli the
be attributed ?
It is to tlieir
discovery of countries
progress that we
in
which there
is
means of
94
transporting
To
cal.
cesses
them
less
we
machinery, and
of the
Are
dearer ?
having increased
tion
as butcher's
ful
meat and
in the
same proportion
poultry,
and almost
all
such
the use-
civilized countries.
the consequence
The
errors,
men, or
merchandise
rises or falls
that
Late
when any
is,
to
its
in
produc-
wines, whatever
production.
No:
for in
dearer, one
who
much
to re-
as.tlie s eller
NOMINAL PRICE.
When
^
wheat instead of
a cask of wine,
is
three,
is
its
95
price, he,
obHged
who,
to pur-
of
poorer by
all
that the
wine merchant
is richer.
Thus
which sometimes
riches.*
The changes
In values
gains
it
to another,
who
it,
inflict
to lose, to give
more
evil
on him who
loses,
They
who
useful speculations
activity,
&c. &c.
in full
productive
96
CHAPTER
XVIII.
On Money.
IF money
silver
is
coined
silver
of greater value than the same weight of
uncoined?
more than
the
Thefashion
is
then
worth
in an ingot.
smith?
Precisely of the
What
utility
same kind.
to the silver ?
The
impression on the
that
is,
who
saying
it.
receive
it
it
saves
ON MONEY.
TVhy do governments
97
of coining money ?
chisive right
might create
the
same
fineness
And
indicates.
in this
of
it
right, in
it,
their revenue.
of
this exchisive
much beyond
the expenses
of manufacturing
of money
this
mer-
chandise ?
It
can do
^),
by reducing
amount of
the
of
money.
then ?
scarce in
to
buy
demand relatively to
give less
in other
money
in
all
other merchandise.
exchange
Should
arising
we
from
to sell or
this
is,
not feel in
the scarcity
for
We should
fall in
price.
of money?
not be lasting
money would
not be diminished by
(13)
in
because the
total
would
There would
ON MONEY.
98
worth more
nominally
in other
or,
fall in
price,
and
their
sum
total
would
sum
still
total
of the money.
The
ingots
and
utensils of gold
fall in
into
and
being a
money, which
price like
money and
feit
silver,
them
case?
different
made
and
in this
is
in
all
dispro-
in ingots.
converting
an inducement to counter-
money.
fabricate false
in
it
dise ?
When
money
is
words, the
otlier
the
augmented
re-
more money
money would
is
fall
nominally dearer.
name of
actually give
The
the
but
is
it
money which
not really,
is
when
changed^ and
it is
we
is,
ON MONEY.
99
minal.
same quantity of
the
stuff.
A bushel
is
thus, to
obliged to
sell
buy
but a
shillings, costs
we
are
still
purchase
worth twelve
a bushel of
we
only no-
of com, instead
is
quantit}'-
of money,
stuff.
This
is
much
before.
To
silver
as
before the
an
comparison to
silver, in
obtain the
quantity of
as
into circulation
same
three times
discovery of
these
mines.
much
and
riches,
But commerce,
ornaments, has
gi'eatly
money
augmented
and
silver,
as for furniture
also
and
vented the precious metals from suffering a depreciation in proportion to their abundance.
They have
ON MONEY.
100
produced
^'been
What
in
demand.
less
metal than
The
but have
it
gave before?
xplauf
When
this
4y
aft
falls
nomi-
example.
we do
the
is,
same weight of
silver.
The
value of the
buy
the
setier of
nois:
com
sold
livres;
commonly
setier sold in
silver,
1789
for
twenty -four
t^velve livres.*
The
a greater weight of
,
1636
we can
for
The marc
JUL
iii
^^l^'
In Englan45
ON MONEY.
What
101
in-
dividuals ?
With respect
government,
worth
less,
if it
it
pay them
becomes banki'upt by
the old
it
With
new money,
similar to
is
in
change
in the
no inconvenience.
The
Does a
?iatio7i,
money,
this
authorizes
it
its
made by
after the
own.
individuals
change produces
bargains are
made according
new money.
whose money
that there
all
commit a bankruptcy
to
No
really
them
is
money.
And when
their
money which
in
by the
is
of this operation?
who
send
it,
take care to
Does
Ves
when she
where no
sJteration
in the
tlie
5s.
money
gra-
Tr.
the average of
ON MONEY.
102
tuitously,
and never
employment of her
manufacture
to
kind of mer-
this
is
capital,
in-
dustry.
TVhat relation
is
of gold and
silver ?
Their
relative values
ferent places,
like
The
merchandise whatever.
manded
silver
the
same
and
monies ?
;
that of
in
consequence of the
facility
me
in copper,
be
them, whenever
it
which
it
because
worth no more
me,
am
that I re-
sure to get
but
signify to
I please,
silver, which
intrinsic value,
intrinsically
them
its
If a
is
for
are obliged
ceive
we
money.
Does
silver
for the
is
if
sometimes to pay
dif-
for
it
too
abundant,
at pleasure the
ON MONEY.
quantity of silver that
ed,
and
it
Repeat
relate to
it
105
represents,
its
value
is
alter-
loss.
money.
The numerous
in a
populous and
ci-
This merchandise
is
commonly
is
money.
of silver, manufac-
The
is
we have
for
it;
and
demand for
it,
in inverse pro-
actually in circulation.
The
totally
i value
^it
is
is
a merchandise,
different
odier thing.
money
An
ounce of metal
in
in
into
money may
an ingot
any
equal
because
/ingot into
money
^nto an
money
ingot.
Whatever be
ney, whether
is
tlie
the
it is
name given
to
it
it
ON MONEY.
104
more than
this fashion
may be
clusive,
coining
money.*
It
was not
possible, in an elementary
it is
but
ex-
work Uke
this,
to include any
but the most important principles, and which were essential to the interest of the public.
Political
Economy.
The
subject
is
105
CHAPTER XIXo
On
call
money a
sign representative
of
merchandises ?
Because
it is
other.
cloth merchant
cloth in his
,
warehouse
is
might as well
the sign
which represents
What
Titles,
value,
trinsic
to a certain quantity of
What do
1.
till
the
end of a
14
by
money
such
money
in-
of
is
bills
ofexchange ?
certain term,
all tlie
amount of
sum
106
and of
paid
risk
tlie
when
they
On
become due.
them
full
amount
this foreign
:
it is
exchange.
this valuation
which
The exchange
of fine gold or
bill
on
discount
ney
that they
is lost.
That they
2.
they
this account,
Commonly the
being-
these metals,
is
them,
in the national
mo-
par^
when
of
the quantity
silver,
of exchange,
is at
is
tl|;4ifell
and
which the
bill
What
That they
circulate
among the
means of the
when we
are certain,
by
whenever we
think proper.
What assurance has the public that the notes ofa bank
will be punctually paid?
it
a value in exchange.
commonly money,
That
This value
which
is in
money,
is at all
is
is
in
them.
'
at the worst,
if these
^n
ifistead
Bank
*^^oney
open
to
exchange them
full
for
mo-
sum
be exchangeable
of
for
at pleasure.
What
It is
of money ?
to a certain point ;
office is constantly
by
due.,
of money
money, the
Then
vf^Y
j/ijl
the times of
if
many
trifling delay.
bills
of the bank
^ Yes,
So
at too great
notes
their value
But
they
till
107
is
pt^p^r money ?
which gives no
title
right to
any
real reim-
title
which
is
and which
ment
it
to the
government,
pay-
for the
What
is it
that keeps
who
refuse to
sell for
paper
money
sometimes the
it,
such as the
108
the absence of
it is
all
money,
is
obliged to apply to
necessity there
it is all
it
multiplying
bring
it
it
if
the facility
it
a very
at will,
then^
A^alue to
which there
into disrepute.
One cannot
Often
is
is
of
later,
of a country
No.
Explain
to
me
xvhy.
coin
itself,
were
it
even gold or
silver,
the value of
all
the things in
it
You
say^
^ne, that
in
were
it
even gold or
The
silver.
It appears to
of jnoney of gold or
of a country are
increased.
When
the quantity of
money
is
increased,
try,
may be
as
it
nominal value
its
money
and losing
increases in quantity,
greater.
much
in value as
money were
whatever
doubled,
we
silver for
to
no
be
one
for
ly,
declines,
109
consequent-
would not
in silver
this
If the quantity of
increased tenfold,
we
could not
name
the whole
is
more than a
money iarmsid^,
is
may be
What-
certain value
the
it
more
and
this value,
and of industry,
in a country.
110
CHAPTER
XX.
On Markets,
WHAT do
in production, are
number of
A tanner
products.
one cultivator
most a
at
generally pro-
merchant deals
seldom
another
com
a third,
cattle.
What
from
that ?
by means of exchanging
own
tlie
But when we
ON MARKETS.
we
On what
Ill
want,
we
are said to
our products.
for
depend?
On
On what
On two motives,
product, that
it
which are
The
1st.
consumer has
is,
utihty of the
products he
for
able to
is
give in exchange.
I conceive
pears
to
me
* buyer possesses ,
That
is
As
to the second, if
also true
of money
the quantity
it is
to
buy or
ap-
that the
not.
money which
to
buy
this
money.
it
by products ?
No.
frii
the interest
of a
capital len t
j/ceived the
If he had received
The
it
his tenants
money which he
paid,
caj)ital
on
tlie
had
?
re-
sale of a
cuiTed.
ON MARKETS.
112
The
it,
had
giver, or
it
in
or
he from
exchange
whom the
for
had obtained
giver
some product.
another product
asanexchange
in
may be
considered
duced
for him,)
and
in
which he
bought.
IV hat
That
the
and
to offh- iripaijrr}ent.
for
money
in
exchange
for his
neyjLgain Jig^diaifiJ^
ducts
for
we do
ii^
^^
\i\o-
not consume
money
it
and iHsnot'
:
thus,
when
he
may
them
the air of
demanding money
all
of
do
H3
ON MARKETS.
in reality
demand merchandise
merchan-
for their
dise.
Then
the
produced, the
is
Without doubt.
which are but
and those
It is for this
Httle civihzed,
for products
but
Httle varied;
and productive
lous, industrious,
while in popu-
is
No
it is
multiplied in our
What
The
is it
own
products should be
country.
and the
activi-
ty of their production.
others
for
is
only those
or,
which comes
What
That
that
them
in
to the
in
in the prosperity
of
this ?
exchange
same
for
your
money.
that, so
a loss to you,
(15)
tlieir
from
far
gains, being
that
114
it is
ON MARKETS.
fail
products
will
to
and
appear so
tliat
wars entered
much
better informed.
the
more
into for
senseless as
their
commerce,
we become
115
CHAPTER
On
XXI.
PFHAT regulations
are commonly
made
relating to
industry ?
The
this subject,
made by governments on
have
may
What examples
of the manner
are there
in xvhieh
which
in
we may engage ?
In agriculture,
ture, as
tobacco
couragement
to
when
or
such as
silks
such as cottons.
it
when
it
when
In manufactures,
tures,
it
and prohibits or
restrains odiers,
116
RESTRAINTS
O.V
In commerce,
when
favours
it
others
JVhat
is
and
treaties,
commu-
interdicts
it
with
it
and prohibits
articles,
To
when
or
by
the effect
it
in others.
of such regulations?
produc-
less
On what
and
less lucrative ?
By
tliis
be able
to
In what
hi
way do governments
to be
interfere in the
manner
created?
are to be
employed
when
it
panies
or
when
it
and com-
which must be
marks. In commerce,
the route
port at
sometimes prescribes
which
What
it
is
it
pass, the
the object
OF INDUSTRY.
117
deceiving
ticle
consumers by delivering
tlie
it
workmen from
to
them an
ar-
represents.
When the
verification
difficult to the
caries' drugs.
purchasers
The
is
even of physicians,
same may be
stamp on
What
doms
is
all articles
is
of gold or
the inconvenience
by which
it
The
puts a
silver.
of corporations andfree-
The
trade in
workmen on
is,
the exclusive
JFhy
the
workmen ?
in limiting the
number of
who might
then the
workmen
ON RESTRAINTS
118
thorised.
consumers ?
The
of
all
not permitted to
fall
which
to the rate at
are comprised, as
production
of
in
we know,
from
different producers.
What
incorwenience arises
of the
nation., is
of the income
nopoly ?
sumer,
at the
ducer.
It is
is
an excess of price
same time
that
is
it
lost
the rate of
by
the con-
It is
much
as
it
increases
them on the
other.
But
consumer, while
it is
of
repeated on
the articles
we
purchase,
But when
it
becomes
OF INDUSTRY.
119
And
the ex-
were
less
it is
the
same
as
if their
are poorer.
incomes
They
120
CHAPTER
On
Importations, Duties,
XXII.
and
Prohibitions,
signify ?
into a coun-
What
into a country.
entirely,
they are
made
to
What
results from
An absolute
an absohite prohibition ?
and
in-
itself to
some
pro-
Why
less
advantageous ?
in
it
mode.
The
would be superfluous,
prohibition
if
121
the prohibit-
WJmt
a duty
tion^
The
is
then only
evil is
partial,
and consists
The consumer
pays for
What
any
does
it
more, goes
to every
body
in
;
worth.
it is
The
for
tlie
in a dear-
profit
by
by
it
for
what
sells
it
consumed
or in contributions
for the
lost to
to
of production are
lost,
by
them.
The
It
and
that,
who
sell
the service of
all
a product of
16
its
agricultural industry.
much
as
is,
to
wheat
ON IMPORTATIONS, DUTIES,
122
whose gains
When
services
it
necessary, in order
to create
is
more values
fiu'nished
Do
more values
in services.
the creation
in
of a product
and the
duties,
in the interior
made
in
by compelling
of a country,
such a produc-
tion ?
They
made on
by
made on a manu-
factured production.
Is not
ed
in
that
tJiat
nation,
make
^^'e
pay dearer
port a greater
if
offoreigners ?
as
own
is,
the
number
of national producers,
it is
just
portion of
its
income
to maintain
workshops of charity.
Perhaps no population
is
industry, left to
itself,
AND PROHIBITIONS.
123
7iatioJi :
and
it
pay
to
But if the
state be in
it
want of
other kind
No
of impost ?
is
as the land
The
is
consume them.
They
are
augment
But
tliey
all
who
would
The
laws,
is
sudden.
tlie
particular
employment of
cer-
part,
^^ith-
and sometimes
ON IMPORTATIONS, DUTIES,
124
For example,
securit}'^
if
on
for a long
sums
ture of cotton
goods only
in
cottons might
all at
rate
though
this law,
of a countrj^, smce
machinery
and
if
for the
fit
manufac-
once be introduced
at a
cheaper
income
it is
because
pitals actually
it
engaged
ca-
in
STOods.
production
employed
composed of the
is
in this
production
for the
comes
useless.
new
new
that
is,
this
kind of capital
capital
bear
is
and
this capital
apprenticeship
must be
in
is
painful
general, are
necessary
The
laid out.
more
the
who,
advances which
as
it
loss of
falls
little
on
able to
it.
And
even
legislation
in
rangement and
total
evil,
its situation,_is
kind of industry.
It loses part
loss of capital,
A building,
by
its
it
ar-
if its
ON PRODUCTIONS.
destination
The
must be changed.
125
simple change
of"
many
many
It is
only
most desirable
otherwise
fortunes,
families.
we
and de-
126
CHAPTER XXIIL
On
Exportation.
It signifies tlie
it
abroad
indigen-
its
ous products ?
No doubt it
is
lucrative relations,
also
which
own
its
and
we may
country, or which
would
much more.
Does
than
and
it
its affairs,
to its
No
profits as
nation,
own people ?
an external one,
and
is
is
it
than exportation
itself.
In
fact, if
ON EXPORTATION.
goods,
it is
127
When
a stranger travels
for
them.
spends his money there, does not that country gain all
the
money he
The
leaves behind ?
money which
/'
it
him
what
in
given to
is
him is
mo-
effect similar to
which
is
The
an exportation of merchandise
profits
made on
this
him
because a
sold to
is
who
pur-
it
benejicial to
expend money
in order to
attract
foreigners ?
'
to
them exact-
made
which
result
from
it,
much
are given to
ceed them.
TVhy do most
nations
of those
nations)
ON EXPORTATION.
128
to
and
to strangers^
of
of
to
from
them ?
It is
source of riches.
What
is^
The mines
in
of riches ?
own
On what
On
chandise until
it
is
time he exchanges
Why does a
from
nation^ in
regard
which
money.
sells his
products only to
consumption, or
fit
for the
man who
in his
customer,
tageous price.
that
It is
in
the
not the
another.
ON EXPORTATION.
The
merchants,
by
cation,
tions, are
who
some
so to
The
other.
will at least
paying for
last, in
The
communi-
129
be
will pro-
it,
first.
to obtain in return
mand, because
Would it
it
not be
such merchandise as
is
most
in de-
You do
it
in the
That
liberty to
is
true
employ
but
when I have
it in
the purchase
the
money
I am
at
ofwhatever I think
proper.
A foreign
gives
receive
for
you
you
as
in
merchandise,
you
are willing to
loss
which we
suffer
there be a value
(1")
commercial operation,
consumed under
the
form of cham-
ON EXPORTATION.
130
paign, the loss
is
The
cider
would at
cider.
least
national industry.
The
tional industry,
its
com-
merce.
of equal value
to that
exchange
by
He
A mer-
in
the carriage.
he
new
dise
values,
is
also
back
to
augmented by the
is,
own
ported
country.
which
is
ON EXPORTATION.
Every augmentation ofriches^ even
merce^
then the.fruit
is
of an
131
in
external com-
internal production F
which nothing
is
given.
criminal, because
it is
contrary to justice,
it is
odious,
profitable.
fr/iT/
we rob them
continuing to create
them
for once, as
little
profit
when wanted,
tage, but
may be
or
cut
down
a tree to get at
when
carried off
only enjoy
when we
The goods
its fruit.
every
at the
got.
They
itself constitutes
They
are
consumed
tliey are
than good.
more
evil
132
CHAPTER
XXIV.
Oti Population.
ff^HAT
fhe population
of a country
In general a country
as
it
so
nance of
it
is
inhabitants
its
produces
less so, as
less riches.
Because there are commodities, which, without being alimentary, are necessary to
life,
as clothes
and
we can
procure,
It is sufficient for
it
to exist.
The
a country
nature of
ON POPULATION.
accommodate
wants
for the
commodities of which
which
itself to its
stands in the
it
will
cause them to
the
133
it
become abundant.
ticles
for
which serve
the
It will suffer
same
as
when
crops
fail
in
bad
years.
nature, if the
of
This
human
species,
like
more means of
Want
all
for
want of medicine
for
want of rest
for
for
kill
it
has of maintenance.
but
it
gradually wastes.
for
want of
wholesome
want of those
attentions
the
and
increase than
Few people
which we cannot do
From
tlie
moment
to
ON POPULATION.
134
it,
want of the
the reach,
first
it.
It
who
suffer
from
its
means of
and
of life ?
ex-
of those
shock.
necessaries
city
first
is
as
tlie
the
scar-
number
privation.
ajid, in general,
those plagues
to
The
And we do
not
more
easily satisfied.
It is
the
abundance of productions, and not the scarcity of consumers, which procures a plentiful supply of whatever
What
is it
that induces
men
to
assemble together in
The
all
Those who
culti-
to
have a
ON POPULATION.
in towns,
sils,
where they
and the
find at
artisans of
in
more
tributed
easily, or
want.
hand
135
commerce
in
place them-
or
it is
dis-
countries.
Those who produce by means of their lands, but without employing them themselves, being able to expend
their
incomes
in
where they
live
products
tlierefore
profits are
consumed
we meet with
chiefly in places
so
many
where a number
It is for this
reason,
Are
the
founded on immate-
It is
cities.
By no means
They do
have
in-
tlie latter
as they
in
exchange.
And
the country
cities, to
in
their tiu'n.
ON POPULATION.
136
when
commerce.
Thus
country, than
there
is
manufac-
cities.
137
CHAPTER XXV.
On
Colonies.
by Colonies ?
form
more
at ease.
Are
They may
either
the metropolis.
be dependent or independent of
The
metropolis
TVhat
of colonies
is
tlie
nation from
forth.
tropolisy or
mother country ?
I imderstand those
to the
by laws which
it
same
imposes
on them.
TFImt
of the
effect
colonies
That
18)
it
may have
occasion for i
ON COLONIES.
138
monopoly, or
that this
make
pay more
for the
merchandise than
The metropolis^
then.,
it is
the colonists
worth.
Yes
but
all
the metropolis
sell
too dear,
colonial consumers. It
is
and merchants of
by the
is
These values
which
Are
so
is
much
is
gain
to those
divided amongst
many
the poorer
who
and small
citi-
by
it.
i?ide??inijied in
They make
in their turn
is
not permit-
On the
product of which
it
on the
other,
it is
is in
want.
Are
tJiere
de-
pendent colonies ?
Their administration
pensive, because
distance
it is
is
is
obliged to keep up
ON COLONIES.
and naval
garrisons,
able
it
139
and
military
Do
pendent ?
which
costs
them very
the metropolis
polis
little.
They
are
no expense to
from
nications.
FliXIS.
their reciprocal
commu-
INDEX,
ACTORS,
50, 51.
Agriculture
See Industry,
Anticipation, 84.
Artisan, 18.
Avai-ice, 63.
Bank
Mllon, 102.
Bond (Loan)
83.
circulating
87124.
Idle, 31.
of,
80.
Charges of Production,
,
Colonies, 137.
Commerce
.
See
,
-,
Industry'.
Consume, to,
28.
Consumer, 13, 35, 39, 76, 77, 78, 117, 121, 134
INDEX.
141
Consumption, 27, 28, 29, 30, 50, 54, 55, 56, 57, 58, 59, 62, 63, 64, 65, 68,
69, 74, 81, 131
,
Unproductive, 28, 30, 50, 55, 56, 59, 67, 68, 81, 131.
Public, 56, 66, 67, 68, 69, 70, 71, 74, 80, 81.
64-,
65, 131.
Demand,
13, 34, 35, 36, 54, 75, 88, 97, 111, 113,
Economy,
Exchange,
10, 110.
Mediiun
Par
Expenses, 62
of, 10.
of, 106.
Fail of Price,
Farmer,
93.
36.
Fees, 50.
Fisliing, 16.
Fund, Sinking,
Gold
86.
See Metals.
See Fees.
Gratuities
22, 43.
Impost
See Tax.
Income, 38, 40, 49, 72, 73, 76, 78, 82, 86, 91, 93, 134.
,
Augmentation
of,
41, 123.
INDEX.
142
Income, Diminution
,
of,
Industry, 14, 16, 17, 18, 19, 20, 21, 22, 23, 28, 34, 36, 51, 74, 78, 115, 122.
Agricultural, 16, 115.
Commercial, 18, 19, 29, 74, 116, 122, 123, 128, 129, 130.
Operations
common to all,
21.
Legal, 47.
Land,
9, 24, 25, 31, 32, 34, 35, 38, 47, S3, 74, 77, BY.
Physical, 21.
Learned Men,
23.
94.
See Industry.
Manufactures.
Medium,
Merchandise,
rise
of Price
of,
Mining,
16.
Money,
9, 10, 11, 14, 24, 41, 46, 91, 96. 97, 100, 101, 102, 108, 128, 129.
Aheration
of,
Exportation
of, 101.
-,
-,
Offeh.
Papfr.
Monet.
See Money.
INDEX.
X43
Physician, 49.
See Rapine.
Plunder.
Poverty, 89.
Premium,
115,
127".
real, 90.
fall of,
,
Produce,
Producers, 13, 35, 36, 39, 76, 77, 78, 112, 121.
Product, 13, 14, 34, 36, 42, 49, 52, 53, 60, 69, 76, 87, 88, 89, 111
Production, 16, 27, 41, 42, 58, 73, 121, 122, 123.
'
Annual, 72.
Annual of a Nation,
60.
ProHts, 13, 26, 37, 38, 40, 41, 60, 121, 130, 131.
Prohibitions, 115, 116, 120, 121, 122, 123, 124, 125.
Public, 71.
Ramne,
131.
See Industry.
Restraint.
79.
See Wealtli.
Riches, height
of, 89.
of, 128.
Sale of Offices,
84.
SheUs, 11.
of, 78.
INDEX.
144
Taxes, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 121, 122, 123.
not the income of a Nation, 79,
direct, 74, 77.
'
suppression
See
of,
123.
duties.
Undehtakeh,
21, 22, 23, 24, 29, 36, 39, 43, 49, 59.
UtUity, 13, 14, 16, 19, 27, 28, 34, 54, 70, 96, 111.
Vawe,
Wages,
War,
87, 133.
133, 134.
Wealth,
9, 14, 15, 20, 51, 52, 55, 61, 79, 81, 86, 88, 89, 92, 108, 113.
Workmen,
University of California
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