General Treatises forming a Parallel Course of Reading with Mill.
Professor Fawcett's “Manual of Political Economy” (London, sixth edition, 1883) is a brief statement of Mill's book, with additional matter on the precious metals, slavery, trades-unions, co-operation, local taxation, etc.
Antoine-Élise Cherbuliez's “Précis de la science économique” (Paris, 1862, 2 vols.) follows the same arrangement as Mill, and is considered the best treatise on economic science in the French language. He is methodical, profound, and clear, and separates pure from applied political economy.
Other excellent books in French are: Courcelle-Seneuil's “Traité théorique et pratique d'économie politique” (1858), (Paris, second edition, 1867, 2 vols.), and a compendium by Henri Baudrillart, “Manuel d'économie politique” (third edition, 1872).
Roscher's “Principles of Political Economy” is a good example of the German historical method; its notes are crowded with facts; but the English translation (New York, 1878) is badly done. There is an excellent translation of it into French by Wolowski.
A desirable elementary work, “The Economics of Industry” (London, 1879), was prepared by Mr. and Mrs. Marshall.
Professor Jevons wrote a “Primer of Political Economy” (1878), which is a simple, bird's-eye view of the subject in a very narrow compass.
Important General Works.
Adam Smith's “Wealth of Nations” (1776). The edition of McCulloch is perhaps more serviceable than that of J. E. T. Rogers.
[pg 044]Ricardo's “Principles of Political Economy and Taxation” (1817).
J. S. Mill's “Principles of Political Economy” (2 vols., 1848—sixth edition, 1865).
Schönberg's “Handbuch der politischen Oekonomie” (1882). This is a large co-operative treatise by twenty-one writers from the historical school.
Cairnes's “Leading Principles of Political Economy” (1874); “Logical Method” (1875), lectures first delivered in Dublin in 1857.
Carey's “Social Science” (1877). This has been abridged in one volume by Kate McKean.
F. A. Walker's “Political Economy” (1883). This author differs from other economists, particularly on wages and questions of distribution.
H. George's “Progress and Poverty” (1879). In connection with this, read F. A. Walker's “Land and Rent” (1884).
Treatises on Special Subjects.
W. T. Thornton's “On Labor” (1869).
McLeod's “Theory and Practice of Banking” (second edition, 1875-1876).
M. Block's “Traité théorique et pratique de statistique” (1878).
Goschen's “Theory of Foreign Exchanges” (eighth edition, 1875).
J. Caird's “Landed Interest” (fourth edition, 1880), treating of English land and the food-supply.
W. G. Sumner's “History of American Currency” (1874).
John Jay Knox's “United States Notes” (1884).
Jevons's “Money and the Mechanism of Exchange” (1875).
Tooke and Newmarch's “History of Prices” (1837-1856), in six volumes.
Leroy-Beaulieu's “Traité de la science des finances” (1883). This is an extended work, in two volumes, on taxation and finance; “Essai sur la répartition des richesses” (second edition, 1883).
F. A. Walker's “The Wages Question” (1876); “Money” (1878).
L. Reybaud's “Études sur les réformateurs contemporains, ou socialistes modernes” (seventh edition, 1864).
Dictionaries.
McCulloch's “Commercial Dictionary” (new and enlarged edition, 1882).
Lalor's “Cyclopædia of Political Science” (1881-84) is devoted to articles on political science, political economy, and American history.
Coquelin and Guillaumin's “Dictionnaire de l'économie politique” (1851-1853, third edition, 1864), in two large volumes.
[pg 045]Reports and Statistics.
The “Compendiums of the Census” for 1840, 1850, 1860, and 1870, are desirable. The volumes of the tenth census (1880) are of great value for all questions; as is also F. A. Walker's “Statistical Atlas” (1874).
The United States Bureau of Statistics issues quarterly statements; and annually a report on “Commerce and Navigation,” and another on the “Internal Commerce of the United States.”
The “Statistical Abstract” is an annual publication, by the same department, compact and useful. It dates only from 1878.
The Director of the Mint issues an annual report dealing with the precious metals and the circulation. Its tables are important.
The Comptroller of the Currency (especially during the administration of J. J. Knox) has given important annual reports upon the banking systems of the United States.
The reports of the Secretary of the Treasury deal with the general finances of the United States. These, with the two last mentioned, are bound together in the volume of “Finance Reports,” but often shorn of their tables.
There are valuable special reports to Congress of commissioners on the tariff, shipping, and other subjects, published by the Government.
The report on the “International Monetary Conference of 1878” contains a vast quantity of material on monetary questions.
The British parliamentary documents contain several annual “Statistical Abstracts” of the greatest value, of which the one relating to other European states is peculiarly convenient and useful. These can always be purchased at given prices.
A. R. Spofford's “American Almanac” is an annual of great usefulness.
Writers on Political Economy profess to teach, or to investigate, the nature of Wealth, and the laws of its production and distribution; including, directly or remotely, the operation of all the causes by which the condition of mankind, or of any society of human beings, in respect to this universal object of human desire, is made prosperous or the reverse.
While the [Mercantile] system prevailed, it was assumed, either expressly or tacitly, in the whole policy of nations, [pg 048] that wealth consisted solely of money; or of the precious metals, which, when not already in the state of money, are capable of being directly converted into it. According to the doctrines then prevalent, whatever tended to heap up money or bullion in a country added to its wealth.
Whatever sent the precious metals out of a country impoverished it. If a country possessed no gold or silver mines, the only industry by which it could be enriched was foreign trade, being the only one which could bring in money. Any branch of trade which was supposed to send out more money than it brought in, however ample and valuable might be the returns in another shape, was looked upon as a losing trade. Exportation of goods was favored and encouraged (even by means extremely onerous to the real resources of the country), because, the exported goods being stipulated to be paid for in money, it was hoped that the returns would actually be made in gold and silver. Importation of anything, other than the precious metals, was regarded as a loss to the nation of the whole price of the things imported; unless they were brought in to be re-exported at a profit, or unless, being the materials or instruments of some industry practiced in the country itself, they gave the power of producing exportable articles at smaller cost, and thereby effecting a larger exportation. The commerce of the world was looked upon as a struggle among nations, which could draw to itself the largest share of the gold and silver in existence; and in this competition no nation could gain anything, except by making others lose as much, or, at the least, preventing them from gaining it.
The Mercantile Theory could not fail to be seen in its true character when men began, even in an imperfect manner, [pg 049] to explore into the foundations of things. Money, as money, satisfies no want; its worth to any one consists in its being a convenient shape in which to receive his incomings of all sorts, which incomings he afterwards, at the times which suit him best, converts into the forms in which they can be useful to him. The difference between a country with money, and a country altogether without it, would be only one of convenience; a saving of time and trouble, like grinding by water instead of by hand, or (to use Adam Smith's illustration) like the benefit derived from roads; and to mistake money for wealth is the same sort of error as to mistake the highway, which may be the easiest way of getting to your house or lands, for the house and lands themselves.
Money, being the instrument of an important public and private purpose, is rightly regarded as wealth; but everything else which serves any human purpose, and which nature does not afford gratuitously, is wealth also. To be wealthy is to have a large stock of useful articles, or the means of purchasing them. Everything forms, therefore, a part of wealth, which has a power of purchasing; for which anything useful or agreeable would be given in exchange. Things for which nothing could be obtained in exchange, however useful or necessary they may be, are not wealth in the sense in which the term is used in Political Economy. Air, for example, though the most absolute of necessaries, bears no price in the market, because it can be obtained gratuitously; to accumulate a stock of it would yield no profit or advantage to any one; and the laws of its production and distribution are the subject of a very different study from Political Economy. It is possible to imagine circumstances in which air would be a part of wealth. If it became customary to sojourn long in places where the air does not naturally penetrate, as in diving-bells sunk in the sea, a supply of air artificially furnished would, like water conveyed into houses, bear a price: and, if from any revolution in nature the atmosphere became too scanty for the consumption, [pg 050] or could be monopolized, air might acquire a very high marketable value. In such a case, the possession of it, beyond his own wants, would be, to its owner, wealth; and the general wealth of mankind might at first sight appear to be increased, by what would be so great a calamity to them. The error would lie in not considering that, however rich the possessor of air might become at the expense of the rest of the community, all persons else would be poorer by all that they were compelled to pay for what they had before obtained without payment.
Wealth, then, may be defined, all useful or agreeable things which possess exchangeable value; or, in other words, all useful or agreeable things except those which can be obtained, in the quantity desired, without labor or sacrifice.