UNIVERSITY

OF

CALIFORNIA

PREFACE

THROUGHOUT the preparation of this fragment, which is now offered to the public as a contribution to the discussion of the Money Problem and the Labour Problem, this writer has endeavoured to subordinate all other considerations to the desire (1) to make a popular presentation of a scientific subject rather than a scientific presentation of a popular subject; (2) to accept as far as practicable the generally received nomenclature of economic science; (3) to present the subject briefly, and as far as practicable and consistent with the truth, as it manifests itself to him, in the language and from the points of view which have been most generally accepted as rational "at the bar of common sense"; (4) to avoid giving undue prominence to phases of the science, not immediately connected with the particular questions discussed, which tend to give rise to fruitless disputes among economists, emphasising rather those phases concerning which there is substantial agreement; (5) and to avoid making a representation of economic phenomena which might create an impression in the minds of any class or sub-class of society that they have been, or are being, deliberately and intentionally oppressed or defrauded by any other class or sub-class of society: the

outcome of reforms brought about by pitting the egoistic interests of one class or sub-class, against the egoistic interests of another class or sub-class of society does not appear to warrant the belief that such a method facilitates the establishment of "Peace and goodwill among men.” “A house divided against itself cannot stand." The Appendices have been embodied as a means, not only of illustrating the particular economic questions discussed, but also of exhibiting this writer's idea of society as an organism, and the relation which the department of economy, and the other organic departments, bear to each other and to the organism of society.

According to this idea we are required to apprehend society as existing in nature, and yet as being distinct from nature. This is a fundamental distinction discovering the natural (physical) order of phenomena and the social (speculative) order of phenomena as being seemingly opposite in their tendencies, and contradicting each other, yet, nevertheless, as fulfilling each other, as being the reciprocals of each other, in that they are unified in the universal order of phenomena.

The law of the natural order is the law of the survival of the physically, animally, fittest; the law which says, "An eye for an eye, and a tooth for a tooth "—the law of egoism.

The law of the social order is, or should be, the law of the survival of the morally, intellectually, fittest; the law which says, "If thine enemy hunger, feed him ; if he thirst, give him drink"-the law of altruism.

From the at-one-ment of these two laws, allowing each its full weight of influence, proceedeth the law of the universal order, the law which says, "As ye would that men should do unto you, do ye also unto them; and, "As ye would not that men should do unto you, do ye not unto them "-the law of reciprocity, the law of co-operation, the law of humanity.

Again, according to this idea of society, we are required (1) to apprehend society as a unit, as a single organism; (2) to apprehend society as divided into three organic departments; and (3) to apprehend these departments as subdivided into sections and functions.

To indicate the view of society, or of any department, section, or function thereof, apprehended as a unit, as a single organism, the term objective is used.

To indicate the view of any department, section, function, or member of society apprehended as a constituent unit of society, or of any compound social organism, the term subjective is used.

(1) To indicate the phase or condition of society apprehended as unifying itself so as to become a single organism, or the phase or condition of any department of society apprehended as unifying itself so as to become a single organism, the term organisation. is used.

(2) To indicate the phase or condition of society apprehended as separating itself into departments, the term departmentisation is used.

(3) To indicate the phase or condition of any

department or section apprehended as subdividing itself into functions, the term functionisation is used.

Of the functions of any organism some are for the purpose of (1) governing-directing and controlling ; some are for the purpose of (2) moving-transporting, or circulating; and others are for the purpose of (3) using-expending, or consuming the materials, or produce necessary for its sustenance, fecundity, and continuity. The terms government, movement, usement, are used for the purpose of distinguishing these three classes of functions.

The physical (objective and subjective) section of Political Economy, dealing with quantities of commodities, is subject to the law of the natural order.

The speculative (objective and subjective) section of Political Economy, dealing with values of commodities expressed in terms of money, is, or should be, subject to the law of the social order.

The at-one-ment of these sections of Political Economy is attained unto and maintained in the degree in which, anywhere and at any time, the actual economy of society conforms to, corresponds with, and is thereby made subject to the law of the universal order.

The conception of economic phenomena as being divided into physical and speculative categories, and subdivided into objective and speculative categories, is not regarded by this writer as being inconsistent with the teachings of the masters who have created the science of Political Economy, and brought some