by individuals. The inhabitants of a district believe that the establishment of a certain branch of manufacture would be beneficial to them, and they offer certain advantages to capitalists to embark in the enterprisejust as was done by the citizens of Amsterdam with the view of inducing the employers and artisans of Aix to settle in their city-and no one doubts the propriety of the proceeding. The ratepayers of a town want a good harbour, and they impose a temporary rate on themselves for the purpose of raising the necessary funds-in the same way as the ratepayers of Greenock did in order to secure the West India sugar trade-and they are everywhere applauded for their energy and enterprise. Why should that which is proper for the individual or corporation to do, be improper for the state?

in the

By the modern school of economists it is considered a wise policy to import commodities from Buying those places where they can be purchased cheapest cheapest. But why should it not be considered market. an equally wise policy to have commodities produced in those places where the cost of production would be least? Why should we not ascertain the countries where the raw material can be obtained most abundantly, and carry thither our capital and labour;1 or, having the raw material in abundance, why not import the labour to manufacture it? It was in this manner

1 This view is put by Mill as an argument in favour of state-assisted emigration.-Principles, vol. ii. book v. ch. xi. 14.

that England established her woollen manufactures. Instead of exporting her raw wool, and reimporting it again when manufactured, she kept her wool and imported skilled workmen from Holland to make it into. cloth.

Society the best judge of its own interests.

The Economists insist that the individual is the best judge of his own interests. The dictum is one that I am not disposed to dispute. On the contrary, I accept it without the slightest hesitation. All that I insist upon is that the principle should have a more general application, and that society should, in respect to ability of judging as to its own interests, be put upon the same footing as the individual.

INDEX OF SUBJECTS.

A.

ADULTERATION, old English laws against, 79; modern public opinion
on, 80 (n.); openly tolerated and defended, 83, 84; of calico, 166;
Manchester Chamber of Commerce on, 167.

Adjustment, the idea of, 161.

Appropriation, first effected by the tribe, 173.

Arbitration. See Courts of.

Aristotle, his views on social organization, 162; on the relationship of
the moral sciences, 171.

Art, as distinguished from science, 176; of legislation, 176; of Political
Economy, 177; the functions of, 181; its relation to nature, 181;
follows nature's method, 183; ends and means of, 184; what nature
demands of, 184.

Ashburner, Mr., on adulteration, 84.

Auction, sale by, 65.

Australia, sale of land in, 65, 66.

Auvergne, division of employments in, 18, 19 (n.).

B.

BAGEHOT, Mr., on fluctuations in the money-market, 132.

Bain, Mr., on the reality of moral distinctions, 45.

Bombay Chamber of Commerce and the new Indian tariff, 76; on

adulteration, 84, 85.

Bombay Gazette, The, on the new Indian tariff, 75 (n.).

Brassey, Mr., on Hindoo workmen, 108.

C.

CAIRNES, Prof., his views on the subject-matter of Political Economy, 9;
on method, 14; on the relation of Political Economy to abstract
justice, 54; on competition, 58 (n.); on value, 115; on the wages-
fund theory, 138, 145.

Calcutta Englishman, The, on the new Indian tariff, 74.

Calico, the adulteration of, 166.

Capital, how affected by demand and supply, 52, and competition, 60 ;
an instrument of production, 136; the right to use only exchanged,
151.
Chalmers, Dr., on the distinction between necessaries and luxuries, 49.
Competition, wherein it differs from demand and supply, 35; follows
from the dogma of the sufficiency of self-interest, 55; the object of,
56; is merely provisionary, 57; the tendency of, 58; conditions
necessary to annihilate, 59; between rival companies, 61; amongst
the London Gas Companies, 62; national, 67; in the economic and
organic world, 91; not objectionable per se, 170.

Comte, A., his views on social organization, 162.

Contract, the origin of, 174.

Correlative demand, what is meant by, 37; not objectionable in prin-
ciple, 170.

Courts of Arbitration, the true solution of the wages question, 42.

DEDUCTION. See Method.

D.

Demand, meaning of the term, 36, 125, 127; Mill's explanation of, 125;
Prof. Jenkins's definition, 125 (n.). See also Correlative Demand.
Demand and Supply, as distinguished from competition, 35; its mode of
operation, 38; ignores moral distinctions, 38; its effects in seasons
of scarcity, 40, 41, 47, 49; and on capital and labour, 52; in relation
to quantity, 137, and to profits, 148.

Desires, different from wants, 38; illustrated by the case of the Orissa

famine, 40, by wages disputes, 41; are of secondary importance as
industrial forces, 109.

Difficulty of attainment, not an essential condition of value, 118; subor-
dinate to utility, 120; relation to price, 126, 133, and to demand,
137.

E.

ECONOMY, meaning of the word, 4; how used by Aristotle and Xenophon,

4; its modern acceptation, 4.

Effectual Demand, what it is, 36, 37.

England, the commercial policy of, 67, 68, 69, 70; subdivision of land

in, 148.

Essay on Government, Macaulay's attack on, 21.

Ethics, in relation to Political Economy, 92, 93, 94, 166, 174, and Social
Science, 175; the basis of exchange, 175.

Exchange-Value, what it is, 122, 123. See Value.
Exports, character of British, 88.

F.

FOOD, price of, in relation to wages, 51, 52.

Force, a, different from a law, 102.

Forces, different kinds of industrial, 103; classification of, 105; relative
importance of, 107; the Egoistic, 107; the Hemeistic, 111; the
Allostic, 113; the sphere of the various, 165; what we know of
mental, 178.

Froude, Mr., on the Irish trade, 70.

G.

GOSCHEN, Mr., on out-door relief, 47.

H.

HALLAM, Mr., on the condition of agricultural labourers in the Middle
Ages, 149.

Hops, the effects of the removal of duties on,

Humboldt, on the banana, 108.

80 (n.).

Hypothesis, what is essential to an, 17; Mill's, 15, admitted to be in-
adequate, 24; the deductionists', 158.

INDUCTION. See Method.

I.

Industrial Science, a branch of the science of man, 1; meaning of the
term, 3, 4; the phenomena of, 2, 3, 11; definition of, 12; experi-
ments in, 28, 29; its relation to Social Science, 157, 175, and
subordination to the latter, 163; the idea of adjustment inseparable
from, 161.

Industrial forces. See Forces.

Interest, how affected by profits, 151.

Iron, the price of, 142.

Iron and coal trades, 141.