SECTION III.

THE APPLICATION OF THE ART OF REASONING TO POLITICAL ECONOMY.

"POLITICAL Economy" is the name which is given to the Science of Wealth. Adam Smith does not use this name, but simply calls his work "An Inquiry into the Nature and Causes of the Wealth of Nations." A political economist is one who studies or explains the doctrines of political economy. He is not merely one who believes Malthus's theory of the population, Huskisson's system of free trade, Ricardo's theory of rent, and Sir Robert Peel's opinions on the currency. These doctrines do not constitute the science; they are some of the disputed doctrines of the science. He who rejects them is, in our view, as much a political economist as he who maintains them.

I am not going to teach you political economy, but merely to give you a few hints as to the use of the art of reasoning in acquiring a knowledge of some of its principles :

I. The art of reasoning then will teach you that you should understand clearly the nature of the science you intend to learn.

"The science of political economy is intimately connected with the daily occurrences of life, and in this respect differs materially from that of chemistry, astronomy, or any of the natural sciences; the mistakes we may fall into in the latter sciences can have little sensible effect upon our conduct, whilst our ignorance of the former may lead us into serious practical errors. There is scarcely any history or any account of voyages or travels that does not abound with facts and opinions, the bearings of which cannot be understood without some previous acquaintance with the principles of political economy: besides, should the author himself be deficient in this knowledge, you will be continually liable to adopt his errors from inability to detect them."

"This science is essentially founded upon history,—not the history of sovereigns, of wars, and of intrigues; but the history of the arts, of trade, of discoveries, and of civilization. We see some countries, like America, increase rapidly in wealth and pro

sperity, whilst others, like Egypt and Syria, are impoverished, depopulated, and falling to decay: when the causes which produce these various effects are well understood, some judgment may be formed of the measures which governments have adopted to contribute to the welfare of their people; whether such or such a branch of commerce should be encouraged in preference to others; whether it be proper to prohibit this or that kind of merchandise; whether any peculiar encouragement should be given to agriculture; whether it be right to establish by law the price of provisions or the price of labour, or whether they should be left without control; and so on. You see, therefore, that political economy consists of two parts,-theory and practice; the science and the art. The science comprehends a knowledge of the facts which we have enumerated: the art relates more particularly to legislation, and consists in doing whatever is requisite to contribute to the increase of national wealth, and avoiding whatever would be prejudicial to it."-Mrs. Marcet's Conversations on Political Economy.

II. The art of reasoning will teach you to be systematic and methodical in your studies.

Dr. Watts observes, in his "Improvement of the Mind," that "the best way to learn any science is to begin with a regular system, or a short and plain scheme of that science, well drawn up into a narrow compass, omitting the deeper and more abstruse parts of it ;" and he remarks in another place, that if a man in his younger days has arranged all his sentiments in any particular order, it will be much more natural and easy for him to continue to dispose all his further acquirements in the same order. And he illustrates this by the arrangement of books in a library: when we have accustomed ourselves to any particular arrangement, we can find a book more readily than if they were again to be arranged in even a better order.

Recent writers on political economy have usually divided the science into four parts,-Production, Distribution, Interchange, and Consumption. Under the first division, they have considered labour and capital; under the second, rent, profit, and wages; under the third, commerce and money; and under the fourth, the consumption of Government and that of individuals. It cannot be denied that there is a neatness in this division, and doubtless all the topics of the science may be discussed under one or other

of these heads. But perhaps we cannot have a better division of the science than into-the Nature,—the Causes,— and the Effects of National Wealth. Under the first head, you might enumerate the articles that constitute wealth; under the second head, specify the causes; and under the third head, trace the consequences of wealth on the happiness, intelligence, and morals of the population, &c. The main object of a plan is to assist the memory by a systematic arrangement of your knowledge; and the next object. is to be able to adjust under some head or division of your plan, any additional knowledge you may acquire.

The NATURE of national wealth is thus described by one who was both a poet and a monarch :

"Rid me, and deliver me from the hand of strange children, whose mouth speaketh vanity, and their right hand is a right hand of falsehood: that our sons may be as plants grown up in their youth; that our daughters may be as corner stones, polished after the similitude of a palace: that our garners may be full, affording all manner of store: that our sheep may bring forth thousands and ten thousands in our strects: that our oxen may be strong to labour; that there be no breaking in nor going out; that there be no complaining in our streets. Happy is that people, that is in such a case; yea, happy is that people whose God is the Lord."-Psalm cxliv. 11—15.

The CAUSES of wealth may be thus enumerated :

1. The physical characteristics of a country are a source of its wealth.

Moses, in describing the Land of Promise, uses the following language; and, like a skilful orator, fixes upon those points in which Canaan was superior to Egypt: For the land whither thou goest in to possess it is not as the land of Egypt, from whence ye came out. But the land is a land of hills and valleys, and drinketh water of the rain of heaven.' 'The Lord thy God bringeth thee into a good land, a land of brooks of water, of fountains and depths that spring out of valleys and hills. A land of wheat and barley, and vines, and fig-trees, and pomegranates. A land of oil olive, and honey. A land wherein thou shalt eat bread without scarceness, thou shalt not lack anything in it. A land whose stones are iron, and out of whose hills thou mayest dig brass.' This may be regarded as a negative description of Egypt. The land of Canaan was not, like the land of Egypt, a

level country on which there was no rain, but whose fertility was caused by the overflowing of the river. It was a land of hills and valleys, which drank water of the rain of heaven; it was, also, more picturesque, and afforded everywhere a constant supply of water for themselves and their cattle, for it had brooks of water, and fountains springing out of valleys and hills; it not only produced, like Egypt, wheat and barley, but also vines, and fig-trees, and pomegranates, and oil olive, and honey, which Egypt did not produce: and, moreover, Egypt had no mines of copper or of iron, but this is a land whose stones are iron, and out of whose hills thou mayest dig brass.”—Lectures on Ancient Commerce.

2. The moral habits of its population are a source of its wealth.

“The hand of the diligent maketh rich.-He that loveth pleasure shall be a poor man; he that loveth wine and oil shall not be rich.-The drunkard and the glutton shall come to poverty, and drowsiness shall clothe a man with rags.-He that tilleth his land shall be satisfied with bread, but he that followeth after vain persons shall have poverty enough. He that is slothful in his work is brother to him that is a great waster.-A prudent man foreseeth the evil, and hideth himself; but the simple pass on and are punished. The sluggard will not plough by reason of the cold; therefore shall he beg in harvest, and have nothing.-Love not sleep, lest thou come to poverty. Open thine eyes, and thou shalt be satisfied with bread.-In all labour there is profit: but the talk of the lips tendeth only to penury."-Book of Proverbs.

"Let us, in conclusion, take for our practical government our last observation-the commerce of a country depends upon the character of the people. Let us never forget, that the main cause of the prosperity of any country or of any city lies in the mental and moral character of its inhabitants. Every possible advantage of situation may be rendered nugatory by the misconduct of the people. If, instead of availing themselves of these natural advantages, and persevering in the steady pursuits of trade, the merchants neglect their business, or have recourse to swindling, or gambling, or smuggling, they will assuredly bring upon themselves that ruin and degradation which such practices never fail to produce. It is by honesty, by industry, by prudence, by perseverance, and by public spirit that nations and cities are made to prosper."-Lectures on Ancient Commerce.

3. Political institutions are a source of wealth,--such as security of property, a good government, wise laws, and the impartial administration of public justice.

"The right of private property can be secured only by law and the laws affecting property are more numerous in commercial than in other countries; because the modes of acquiring and conveying property are more numerous, and the rights of different claimants cannot be so easily defined. Commerce is affected by all laws relating to the production of commercial commodities-the mode of transferring property-the facility or transport the laying on of taxes-or the punishment of crimes. Besides these general laws, which affect all branches of commerce, there are in many countries laws affecting particular trades, or the export and import of particular commodities."Ibid.

4. Social institutions are a source of wealth,—as mints, banks, post-offices, roads, canals, railways, harbours, exchanges, markets, &c. &c.

"Banking institutions cannot flourish in any society in which property is insecure, whether that insecurity arises from the tyranny of the government, the turbulence of the people, or the incursions of foreign enemies. In oriental countries, where the possession of wealth invites the rapacity of the government, people conceal their wealth by burying it in the earth, and hence we read in Scripture of 'treasures hid in a field.' A similar practice prevailed in Europe during the times of the feudal system; and treasure-trove was a source of royal revenue, as all the concealed treasure, when found, belonged to the king. In the early ages of Greece property was very insecure; partly from the turbulence of the people, partly from the incursions of the neighbouring states. In this state of society, the temples were employed as banks. People who had got money lodged it with the priests, and the sanctity of the place preserved it from violation. Even hostile tribes would not take this treasure, lest they should incur the vengeance of the deity to whom the temple was consecrated." -Ibid.

5. Commerce is a source of wealth.

Tyre is thus described in the Holy Scriptures: A joyous city, whose antiquity is of ancient days, whose merchants are princes, whose traffickers are the honourable of the earth.'Tyrus did build herself a stronghold, and heaped up silver as the dust, and fine gold as the mire of the street. When the waves went forth out of the seas, thou filledst many people; thou didst enrich the kings of the earth with the multitude of thy riches and of thy merchandise." "—Ibid.