Index:Principles of Political Economy Vol 2.djvu

Title	Principles of Political Economy, vol 2
Author	John Stuart Mill
Year	1871
Publisher	Longmans, Green, Reader and Dyer
Location	London
Source	djvu
Progress	To be proofread
Transclusion	Index not transcluded or unreviewed
Volumes	Vol 1, Vol 2

Pages (key to Page Status)

- - - - - - Title Print

Contents

v vi vii viii ix x xi xii xiii xiv xv -

Book 3 (Cont.)

Bk3 - 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260

Book 4

Bk4 - 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378

Book 5

Bk5 - 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 533 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 579 580 581 582 583 584 585 586 587 588 589 590 591 592 593 594 595 596 597 598 599 600 601 602 603 604 605 606 607 608 - - - -

 

CONTENTS

OF

THE SECOND VOLUME.

 

1.  

   BOOK III.

    

   EXCHANGE.—(Continued.)

    

   Chapter VII. Of Money.

2. Page

3. § 1.

   Purposes of a Circulating Medium ................................................................................................................................................................................................................................................................................................................................................................................................

   3

4. 2.

   Gold and Silver, why fitted for those purposes ................................................................................................................................................................................................................................................................................................................................................................................................

   5

5. 3.

   Money a mere contrivance for facilitating exchanges, which does not affect the laws of Value ................................................................................................................................................................................................................................................................................................................................................................................................

   8

6.  

   Chapter VIII. Of the Value of Money, as dependent on Demand and Supply.

7. § 1.

   Value of Money, an ambiguous expression ................................................................................................................................................................................................................................................................................................................................................................................................

   11

8. 2.

   The value of money depends, cæteris paribus, on its quantity ................................................................................................................................................................................................................................................................................................................................................................................................

   12

9. 3.

   —together with the rapidity of circulation ................................................................................................................................................................................................................................................................................................................................................................................................

   17

10. 4.

    Explanations and limitations of this principle ................................................................................................................................................................................................................................................................................................................................................................................................

    19

11.  

    Chapter IX. Of the Value of Money, as dependent on Cost of Production.

12. § 1.

    The value of money, in a state of freedom, conforms to the value of the bullion contained in it ................................................................................................................................................................................................................................................................................................................................................................................................

    23

13. 2.

    —which is determined by the cost of production ................................................................................................................................................................................................................................................................................................................................................................................................

    26

14. 3.

    This law, how related to the principle laid down in the preceding chapter ................................................................................................................................................................................................................................................................................................................................................................................................

    28

15.  

    Chapter X. Of a Double Standard, and Subsidiary Coins.

16. § 1.

    Objections to a double standard ................................................................................................................................................................................................................................................................................................................................................................................................

    32

17. 2.

    The use of the two metals as money, how obtained without making both of them legal tender ................................................................................................................................................................................................................................................................................................................................................................................................

    34

18.  

    Chapter XI. Of Credit as a Substitute for Money.

19. § 1.

    Credit not a creation but a transfer of the means of production ................................................................................................................................................................................................................................................................................................................................................................................................

    36

20. 2.

    In what manner it assists production ................................................................................................................................................................................................................................................................................................................................................................................................

    37

21. 3.

    Function of credit in economizing the use of money ................................................................................................................................................................................................................................................................................................................................................................................................

    40

22. 4.

    Bills of exchange ................................................................................................................................................................................................................................................................................................................................................................................................

    41

23. 5.

    Promissory notes ................................................................................................................................................................................................................................................................................................................................................................................................

    47

24. 6.

    Deposits and cheques ................................................................................................................................................................................................................................................................................................................................................................................................

    48

25.  

    Chapter XII. Influence of Credit on Prices.

26. § 1.

    The influence of bank notes, bills, and cheques, on price, a part of the influence of Credit ................................................................................................................................................................................................................................................................................................................................................................................................

    51

27. 2.

    Credit a purchasing power similar to money ................................................................................................................................................................................................................................................................................................................................................................................................

    52

28. 3.

    Effects of great extensions and contractions of credit. Phenomena of a commercial crisis analyzed ................................................................................................................................................................................................................................................................................................................................................................................................

    54

29. 4.

    Bills a more powerful instrument for acting on prices than book credits, and bank notes than bills ................................................................................................................................................................................................................................................................................................................................................................................................

    59

30. 5.

    — the distinction of little practical importance ................................................................................................................................................................................................................................................................................................................................................................................................

    62

31. 6.

    Cheques an instrument for acting on prices, equally powerful with bank notes ................................................................................................................................................................................................................................................................................................................................................................................................

    68

32. 7.

    Are bank notes money? ................................................................................................................................................................................................................................................................................................................................................................................................

    70

33. 8.

    No generic distinction between bank notes and other forms of credit ................................................................................................................................................................................................................................................................................................................................................................................................

    72

34.  

    Chapter XIII. Of an Inconvertible Paper Currency.

35. § 1.

    The value of an inconvertible paper, depending on its quantity, is a matter of arbitrary regulation ................................................................................................................................................................................................................................................................................................................................................................................................

    75

36. 2.

    If regulated by the price of bullion, an inconvertible currency might be safe, but not expedient ................................................................................................................................................................................................................................................................................................................................................................................................

    78

37. 3.

    Examination of the doctrine that an inconvertible currency is safe if representing actual property ................................................................................................................................................................................................................................................................................................................................................................................................

    80

38.  

39. § 4.

    Examination of the doctrine that an increase of the currency promotes industry ................................................................................................................................................................................................................................................................................................................................................................................................

    83

40. 5.

    Depreciation of currency a tax on the community, and a fraud on creditors ................................................................................................................................................................................................................................................................................................................................................................................................

    86

41. 6.

    Examination of some pleas for committing this fraud ................................................................................................................................................................................................................................................................................................................................................................................................

    87

42.  

    Chapter XIV. Of Excess of Supply.

43. § 1.

    Can there be an oversupply of commodities generally? ................................................................................................................................................................................................................................................................................................................................................................................................

    92

44. 2.

    The supply of commodities in general cannot exceed the power of purchase ................................................................................................................................................................................................................................................................................................................................................................................................

    94

45. 3.

    —never does exceed the inclination to consume ................................................................................................................................................................................................................................................................................................................................................................................................

    95

46. 4.

    Origin and explanation of the notion of general oversupply ................................................................................................................................................................................................................................................................................................................................................................................................

    97

47.  

    Chapter XV. Of a Measure of Value.

48. § 1.

    A Measure of Exchange Value, in what sense possible ................................................................................................................................................................................................................................................................................................................................................................................................

    101

49. 2.

    A Measure of Cost of Production ................................................................................................................................................................................................................................................................................................................................................................................................

    103

50.  

    Chapter XVI. Of some Peculiar Cases of Value.

51. § 1.

    Values of Commodities which have a joint cost of production ................................................................................................................................................................................................................................................................................................................................................................................................

    107

52. 2.

    Values of the different kinds of agricultural produce ................................................................................................................................................................................................................................................................................................................................................................................................

    110

53.  

    Chapter XVII. Of International Trade.

54. § 1.

    Cost of production not the regulator of international values ................................................................................................................................................................................................................................................................................................................................................................................................

    113

55. 2.

    Interchange of commodities between distant places, determined by differences not in their absolute, but in their comparative, cost of production ................................................................................................................................................................................................................................................................................................................................................................................................

    115

56. 3.

    The direct benefits of commerce consist in increased efficiency of the productive powers of the world ................................................................................................................................................................................................................................................................................................................................................................................................

    118

57. 4.

    —not in a vent for exports, nor in the gains of merchants ................................................................................................................................................................................................................................................................................................................................................................................................

    119

58. 5.

    Indirect benefits of commerce, economical and moral; still greater than the direct ................................................................................................................................................................................................................................................................................................................................................................................................

    121

59.  

    Chapter XVIII. Of International Values.

60. § 1.

    The values of imported commodities depend on the terms of international interchange ................................................................................................................................................................................................................................................................................................................................................................................................

    124

61. 2.

    —which depend on the Equation of International Demand ................................................................................................................................................................................................................................................................................................................................................................................................

    126

62. 3.

    Influence of cost of carriage on international values ................................................................................................................................................................................................................................................................................................................................................................................................

    131

63.  

64. § 4.

    The law of values which holds between two countries and two commodities, holds of any greater number ................................................................................................................................................................................................................................................................................................................................................................................................

    132

65. 5.

    Effect of improvements in production on international values ................................................................................................................................................................................................................................................................................................................................................................................................

    136

66. 6.

    The preceding theory not complete ................................................................................................................................................................................................................................................................................................................................................................................................

    140

67. 7.

    International values depend not solely on the quantities demanded, but also on the means of production available in each country for the supply of foreign markets ................................................................................................................................................................................................................................................................................................................................................................................................

    142

68. 8.

    The practical result little affected by this additional element ................................................................................................................................................................................................................................................................................................................................................................................................

    147

69. 9.

    The cost to a country of its imports, on what circumstances dependent ................................................................................................................................................................................................................................................................................................................................................................................................

    150

70.  

    Chapter XIX. Of Money, considered as an Imported Commodity.

71. § 1.

    Money imported in two modes; as a commodity, and as a medium of exchange ................................................................................................................................................................................................................................................................................................................................................................................................

    154

72. 2.

    As a commodity, it obeys the same laws of value as other imported commodities ................................................................................................................................................................................................................................................................................................................................................................................................

    155

73. 3.

    Its value does not depend exclusively on its cost of production at the mines ................................................................................................................................................................................................................................................................................................................................................................................................

    158

74.  

    Chapter XX. Of the Foreign Exchanges.

75. § 1.

    Purposes for which money passes from country to country as a medium of exchange ................................................................................................................................................................................................................................................................................................................................................................................................

    160

76. 2.

    Mode of adjusting international payments through the exchanges ................................................................................................................................................................................................................................................................................................................................................................................................

    160

77. 3.

    Distinction between variations in the exchanges which are self-adjusting, and those which can only be rectified through prices ................................................................................................................................................................................................................................................................................................................................................................................................

    166

78.  

    Chapter XXI. Of the Distribution of the Precious Metals through the Commercial World.

79. § 1.

    The substitution of money for barter makes no difference in exports and imports, nor in the law of international values ................................................................................................................................................................................................................................................................................................................................................................................................

    169

80. 2.

    The preceding theorem further illustrated ................................................................................................................................................................................................................................................................................................................................................................................................

    173

81. 3.

    The precious metals, as money, are of the same value, and distribute themselves according to the same law, with the precious metals as a commodity ................................................................................................................................................................................................................................................................................................................................................................................................

    177

82. 4.

    International payments of a non-commercial character ................................................................................................................................................................................................................................................................................................................................................................................................

    179

83.  

    Chapter XXII. Influence of the Currency on the Exchanges and on Foreign Trade.

84. § 1.

    Variations in the exchange which originate in the currency ................................................................................................................................................................................................................................................................................................................................................................................................

    181

85. 2.

    Effect of a sudden increase of a metallic currency, or of the sudden creation of bank notes or other substitutes for money ................................................................................................................................................................................................................................................................................................................................................................................................

    182

86. 3.

    Effect of the increase of an inconvertible paper currency. Real and nominal exchange ................................................................................................................................................................................................................................................................................................................................................................................................

    187

87.  

    Chapter XXIII. Of the Rate of Interest.

88. § 1.

    The rate of interest depends on the demand and supply of loans ................................................................................................................................................................................................................................................................................................................................................................................................

    191

89. 2.

    Circumstances which determine the permanent demand and supply of loans ................................................................................................................................................................................................................................................................................................................................................................................................

    192

90. 3.

    Circumstances which determine the fluctuations ................................................................................................................................................................................................................................................................................................................................................................................................

    196

91. 4.

    The rate of interest, how far, and in what sense connected with the value of money ................................................................................................................................................................................................................................................................................................................................................................................................

    199

92. 5.

    The rate of interest determines the price of land and of securities ................................................................................................................................................................................................................................................................................................................................................................................................

    205

93.  

    Chapter XXIV. Of the Regulation of a Convertible Paper Currency.

94. § 1.

    Two contrary theories respecting the influence of bank issues ................................................................................................................................................................................................................................................................................................................................................................................................

    207

95. 2.

    Examination of each ................................................................................................................................................................................................................................................................................................................................................................................................

    210

96. 3.

    Reasons for thinking that the Currency Act of 1844 produces a part of the beneficial effect intended by it ................................................................................................................................................................................................................................................................................................................................................................................................

    214

97. 4.

    — but produces mischiefs more than equivalent ................................................................................................................................................................................................................................................................................................................................................................................................

    220

98. 5.

    Should the issue of bank notes be confined to a single establishment? ................................................................................................................................................................................................................................................................................................................................................................................................

    235

99. 6.

    Should the holders of notes be protected in any peculiar manner against failure of payment? ................................................................................................................................................................................................................................................................................................................................................................................................

    238

100.  

     Chapter XXV. Of the Competition of different Countries in the same Market.

101. § 1.

     Causes which enable one country to undersell another ................................................................................................................................................................................................................................................................................................................................................................................................

     240

102. 2.

     Low wages one of those causes ................................................................................................................................................................................................................................................................................................................................................................................................

     248

103.  

104. § 3.

     —when peculiar to certain branches of industry ................................................................................................................................................................................................................................................................................................................................................................................................

     245

105. 4.

     —but not when common to all ................................................................................................................................................................................................................................................................................................................................................................................................

     247

106. 5.

     Some anomalous cases of trading communities examined ................................................................................................................................................................................................................................................................................................................................................................................................

     249

107.  

     Chapter XXVI. Of Distribution, as affected by Exchange.

108. § 1.

     Exchange and Money make no difference in the law of wages ................................................................................................................................................................................................................................................................................................................................................................................................

     252

109. 2.

     —in the law of rent ................................................................................................................................................................................................................................................................................................................................................................................................

     255

110. 3.

     —nor in the law of profits ................................................................................................................................................................................................................................................................................................................................................................................................

     256

111.  

     BOOK IV.

      

     INFLUENCE OF THE PROGRESS OF SOCIETY ON PRODUCTION AND DISTRIBUTION.
112.  

     Chapter I. General Characteristics of a Progressive State of Wealth.

113. § 1.

     Introductory Remarks ................................................................................................................................................................................................................................................................................................................................................................................................

     263

114. 2.

     Tendency of the progress of society towards increased command over the powers of nature; increased security; and increased capacity of co-operation ................................................................................................................................................................................................................................................................................................................................................................................................

     264

115.  

     Chapter II. Influence of the Progress of Industry and Population on Values and Prices.

116. § 1.

     Tendency to a decline of the value and cost of production of all commodities ................................................................................................................................................................................................................................................................................................................................................................................................

     270

117. 2.

     —except the products of agriculture and mining, which have a tendency to rise ................................................................................................................................................................................................................................................................................................................................................................................................

     272

118. 3.

     —that tendency from time to time counteracted by improvements in production ................................................................................................................................................................................................................................................................................................................................................................................................

     274

119. 4.

     Effect of the progress of society in moderating fluctuations of value ................................................................................................................................................................................................................................................................................................................................................................................................

     275

120. 5.

     Examination of the influence of speculators, and in particular of corn dealers ................................................................................................................................................................................................................................................................................................................................................................................................

     277

121.  

     Chapter III. Influence of the Progress of Industry and Population on Rents, Profits, and Wages.

122. § 1.

     First case; population increasing, capital stationary ................................................................................................................................................................................................................................................................................................................................................................................................

     282

123. 2.

     Second case; capital increasing, population stationary ................................................................................................................................................................................................................................................................................................................................................................................................

     286

124. 3.

     Third case; population and capital increasing equally, the arts of production stationary ................................................................................................................................................................................................................................................................................................................................................................................................

     287

125. 4.

     Fourth case; the arts of production progressive, capital and population stationary ................................................................................................................................................................................................................................................................................................................................................................................................

     288

126. 5.

     Fifth case; all the three elements progressive ................................................................................................................................................................................................................................................................................................................................................................................................

     295

127.  

     Chapter IV. Of the Tendency of Profits to a Minimum.

128. § 1.

     Doctrine of Adam Smith on the competition of capital ................................................................................................................................................................................................................................................................................................................................................................................................

     300

129. 2.

     Doctrine of Mr. Wakefield respecting the field of employment ................................................................................................................................................................................................................................................................................................................................................................................................

     302

130. 3.

     What determines the minimum rate of profit ................................................................................................................................................................................................................................................................................................................................................................................................

     304

131. 4.

     In opulent countries, profits habitually near to the minimum ................................................................................................................................................................................................................................................................................................................................................................................................

     307

132. 5.

     — prevented from reaching it by commercial revulsions ................................................................................................................................................................................................................................................................................................................................................................................................

     310

133. 6.

     — by improvements in production ................................................................................................................................................................................................................................................................................................................................................................................................

     312

134. 7.

     — by the importation of cheap necessaries and instruments ................................................................................................................................................................................................................................................................................................................................................................................................

     314

135. 8.

     — by the emigration of capital ................................................................................................................................................................................................................................................................................................................................................................................................

     316

136.  

     Chapter V. Consequences of the Tendency of Profits to a Minimum.

137. § 1.

     Abstraction of capital not necessarily a national loss ................................................................................................................................................................................................................................................................................................................................................................................................

     319

138. 2.

     In opulent countries, the extension of machinery not detrimental but beneficial to labourers ................................................................................................................................................................................................................................................................................................................................................................................................

     322

139.  

     Chapter VI. Of the Stationary State.

140. § 1.

     Stationary state of wealth and population, dreaded and deprecated by writers ................................................................................................................................................................................................................................................................................................................................................................................................

     326

141. 2.

     — but not in itself undesirable ................................................................................................................................................................................................................................................................................................................................................................................................

     328

142.  

     Chapter VII. On the Probable Futurity of the Labouring Classes.

143. § 1.

     The theory of dependence and protection no longer applicable to the condition of modern society ................................................................................................................................................................................................................................................................................................................................................................................................

     333

144. 2.

     The future well-being of the labouring classes principally dependent on their own mental cultivation ................................................................................................................................................................................................................................................................................................................................................................................................

     338

145. 3.

     Probable effects of improved intelligence in causing a better adjustment of population — Would be promoted by the social independence of women ................................................................................................................................................................................................................................................................................................................................................................................................

     340

146. 4.

     Tendency of society towards the disuse of the relation of hiring and service ................................................................................................................................................................................................................................................................................................................................................................................................

     341

147. 5.

     Examples of the association of labourers with capitalists ................................................................................................................................................................................................................................................................................................................................................................................................

     345

148. 6.

     — of the association of labourers among themselves ................................................................................................................................................................................................................................................................................................................................................................................................

     352

149. 7.

     Competition not pernicious, but useful and indispensable ................................................................................................................................................................................................................................................................................................................................................................................................

     376

150.  

     BOOK V.

      

     ON THE INFLUENCE OF GOVERNMENT.
151.  

     Chapter I. Of the Functions of Government in general.

152. § 1.

     Necessary and optional functions of government distinguished ................................................................................................................................................................................................................................................................................................................................................................................................

     381

153. 2.

     Multifarious character of the necessary functions of government ................................................................................................................................................................................................................................................................................................................................................................................................

     382

154. 3.

     Division of the subject ................................................................................................................................................................................................................................................................................................................................................................................................

     388

155.  

     Chapter II. Of the General Principles of Taxation.

156. § 1.

     Four fundamental rules of taxation ................................................................................................................................................................................................................................................................................................................................................................................................

     390

157. 2.

     Grounds of the principle of Equality of Taxation ................................................................................................................................................................................................................................................................................................................................................................................................

     392

158. 3.

     Should the same percentage be levied on all amounts of income? ................................................................................................................................................................................................................................................................................................................................................................................................

     395

159. 4.

     Should the same percentage be levied on perpetual and on terminable incomes? ................................................................................................................................................................................................................................................................................................................................................................................................

     400

160. 5.

     The increase of the rent of land from natural causes a fit subject of peculiar taxation ................................................................................................................................................................................................................................................................................................................................................................................................

     407

161. 6.

     A land tax, in some cases, not taxation, but a rent-charge in favour of the public ................................................................................................................................................................................................................................................................................................................................................................................................

     410

162. 7.

     Taxes falling on capital, not necessarily objectionable ................................................................................................................................................................................................................................................................................................................................................................................................

     412

163.  

     Chapter III. Of Direct Taxes.

164. § 1.

     Direct taxes either on income or on expenditure ................................................................................................................................................................................................................................................................................................................................................................................................

     415

165. 2.

     Taxes on rent ................................................................................................................................................................................................................................................................................................................................................................................................

     415

166. 3.

     —on profits ................................................................................................................................................................................................................................................................................................................................................................................................

     417

167. 4.

     —on wages ................................................................................................................................................................................................................................................................................................................................................................................................

     420

168. 5.

     An Income Tax ................................................................................................................................................................................................................................................................................................................................................................................................

     422

169. 6.

     A House Tax ................................................................................................................................................................................................................................................................................................................................................................................................

     426

170.  

     Chapter IV. Of Taxes on Commodities.

171. § 1.

     A Tax on all Commodities would fall on profits ................................................................................................................................................................................................................................................................................................................................................................................................

     432

172. 2.

     Taxes on particular commodities fall on the consumer ................................................................................................................................................................................................................................................................................................................................................................................................

     433

173. 3.

     Peculiar effects of taxes on necessaries ................................................................................................................................................................................................................................................................................................................................................................................................

     435

174. 4.

     —how modified by the tendency of profits to a minimum ................................................................................................................................................................................................................................................................................................................................................................................................

     439

175. 5.

     Effects of discriminating duties ................................................................................................................................................................................................................................................................................................................................................................................................

     444

176. 6.

     Effects produced on international exchange by duties on exports and on imports ................................................................................................................................................................................................................................................................................................................................................................................................

     448

177.  

     Chapter V. Of some other Taxes.

178. § 1.

     Taxes on contracts ................................................................................................................................................................................................................................................................................................................................................................................................

     458

179. 2.

     Taxes on communication ................................................................................................................................................................................................................................................................................................................................................................................................

     461

180. 3.

     Law Taxes ................................................................................................................................................................................................................................................................................................................................................................................................

     463

181. 4.

     Modes of taxation for local purposes ................................................................................................................................................................................................................................................................................................................................................................................................

     464

182.  

     Chapter VI. Comparison between Direct and Indirect Taxation.

183. § 1.

     Arguments for and against direct taxation ................................................................................................................................................................................................................................................................................................................................................................................................

     466

184. 2.

     What forms of indirect taxation most eligible ................................................................................................................................................................................................................................................................................................................................................................................................

     471

185. 3.

     Practical rules for indirect taxation ................................................................................................................................................................................................................................................................................................................................................................................................

     473

186.  

     Chapter VII. Of a National Debt.

187. § 1.

     Is it desirable to defray extraordinary public expenses by loans? ................................................................................................................................................................................................................................................................................................................................................................................................

     477

188. 2.

     Not desirable to redeem a national debt by a general contribution ................................................................................................................................................................................................................................................................................................................................................................................................

     481

189. 3.

     In what cases desirable to maintain a surplus revenue for the redemption of debt ................................................................................................................................................................................................................................................................................................................................................................................................

     483

190.  

     Chapter VIII. Of the Ordinary Functions of Government considered as to their Economical Effects.

191. § 1.

     Effects of imperfect security of person and property ................................................................................................................................................................................................................................................................................................................................................................................................

     487

192. 2.

     Effects of over-taxation ................................................................................................................................................................................................................................................................................................................................................................................................

     489

193. 3.

     Effects of imperfection in the system of the laws, and in the administration of justice ................................................................................................................................................................................................................................................................................................................................................................................................

     491

194.  

     Chapter IX. The same subject continued.

195. § 1.

     Laws of Inheritance ................................................................................................................................................................................................................................................................................................................................................................................................

     497

196. 2.

     Law and Custom of Primogeniture ................................................................................................................................................................................................................................................................................................................................................................................................

     499

197. 3.

     Entails ................................................................................................................................................................................................................................................................................................................................................................................................

     504

198. 4.

     Law of compulsory equal division of inheritances ................................................................................................................................................................................................................................................................................................................................................................................................

     506

199. 5.

     Laws of Partnership ................................................................................................................................................................................................................................................................................................................................................................................................

     508

200. 6.

     Partnerships with limited liability. Chartered Companies ................................................................................................................................................................................................................................................................................................................................................................................................

     510

201. 7.

     Partnerships in commandite ................................................................................................................................................................................................................................................................................................................................................................................................

     515

202. 8.

     Laws relating to Insolvency ................................................................................................................................................................................................................................................................................................................................................................................................

     521

203.  

     Chapter X. Of Interferences of Government grounded on Erroneous Theories.

204. § 1.

     Doctrine of Protection to Native Industry ................................................................................................................................................................................................................................................................................................................................................................................................

     530

205. 2.

     Usury Laws ................................................................................................................................................................................................................................................................................................................................................................................................

     542

206. 3.

     Attempts to regulate the prices of commodities ................................................................................................................................................................................................................................................................................................................................................................................................

     548

207. 4.

     Monopolies ................................................................................................................................................................................................................................................................................................................................................................................................

     550

208. 5.

     Laws against Combination of Workmen ................................................................................................................................................................................................................................................................................................................................................................................................

     552

209. 6.

     Restraints on opinion or on its publication ................................................................................................................................................................................................................................................................................................................................................................................................

     558

210.  

     Chapter XI. Of the Grounds and Limits of the Laisser-faire or Non-interference Principle.

211. § 1.

     Governmental intervention distinguished into authoritative and unauthoritative ................................................................................................................................................................................................................................................................................................................................................................................................

     561

212. 2.

     Objections to government intervention the compulsory character of the intervention itself, or of the levy of funds to support it ................................................................................................................................................................................................................................................................................................................................................................................................

     563

213. 3.

     increase of the power and influence of government ................................................................................................................................................................................................................................................................................................................................................................................................

     565

214.  

215. § 4.

     — increase of the occupations and responsibilities of government ................................................................................................................................................................................................................................................................................................................................................................................................

     566

216. 5.

     — superior efficiency of private agency, owing to stronger interest in the work ................................................................................................................................................................................................................................................................................................................................................................................................

     568

217. 6.

     — importance of cultivating habits of collective action in the people ................................................................................................................................................................................................................................................................................................................................................................................................

     570

218. 7.

     Laisser-faire the general rule ................................................................................................................................................................................................................................................................................................................................................................................................

     572

219. 8.

     — but liable to large exceptions. Cases in which the consumer is an incompetent judge of the commodity. Education ................................................................................................................................................................................................................................................................................................................................................................................................

     576

220. 9.

     Case of persons exercising power over others. Protection of children and young persons; of the lower animals. Case of women not analogous ................................................................................................................................................................................................................................................................................................................................................................................................

     580

221. 10.

     Case of contracts in perpetuity ................................................................................................................................................................................................................................................................................................................................................................................................

     584

222. 11.

     Cases of delegated management ................................................................................................................................................................................................................................................................................................................................................................................................

     585

223. 12.

     Cases in which public intervention may be necessary to give effect to the wishes of the persons interested. Examples: hours of labour; disposal of colonial lands ................................................................................................................................................................................................................................................................................................................................................................................................

     588

224. 13.

     Case of acts done for the benefit of others than the persons concerned. Poor Laws ................................................................................................................................................................................................................................................................................................................................................................................................

     593

225. 14.

     — Colonization ................................................................................................................................................................................................................................................................................................................................................................................................

     596

226. 15.

     — other miscellaneous examples ................................................................................................................................................................................................................................................................................................................................................................................................

     603

227. 16.

     Government intervention may be necessary in default of private agency, in cases where private agency would be more suitable ................................................................................................................................................................................................................................................................................................................................................................................................

     606