644
ECONOMICS
economics applies to the manorial system, and it is generally supposed at any rate that the world has been approximating more and more nearly during the last century to the conditions assumed in most of the reasoning of that school. On the principles we have explained, therefore, the Ricardian economics should supply just that body of general theory which is required in the investigation of modern economic problems, and the reputation of at any rate the leading writers should be as great as ever. It would be of immense advantage from a scientific point of view if this could be taken for granted, if for a time the work of the classical economists could be considered final so far as it goes, and for the purposes of investigation regarded as the theoretical counterpart of the modern industrial system. This assumption, however, has been made quite impossible, not by the historical school, but by the criticism and analysis of economists in the direct line of the Ricardian succession. Modern economic criticism and analysis has destroyed the authority of the “ old Political Economy ” as a scientific system. The assumptions, the definitions, the reasoning, the conclusions of the classical writers have been ruthlessly overhauled. Defects in their arguments have been exposed to view by those who are most concerned to defend their reputation. Writers with none of the prejudices of the historical school, but with the cold and remorseless regard for logic of the purely objective critic, have pointed out serious inconsistencies here, the omission of important factors there, until very little of the “old Political Economy” is left unscathed. In fact, there never was a scientific system at all. What was mistaken for it was fashioned in the heat of controversy by men whose interests were practical rather than scientific, who could not write correct English, and revealed in their reasoning the usual fallacies of the merely practical man. So the “old Political Economy” lies shattered. It is useless to suppose that this destructive criticism from within can be neutralized by generously sprinkling the pages of the classical writers with interpretation clauses. This may serve to show that the ideals of our youth were not without justification; but the younger generation, which does not care about our ideals, and looks to the future rather than the past, will not read annotated editions of old books, however eminent their authors. If the Ricardian school of economists had been merely philosophers, or even a group like the French physiocrats, this state of things might be regarded with equanimity. We might assume that criticism and analysis had separated the wheat from the chaff in their writings, that everything of permanent value had probably been preserved and incorporated in the works of later economists. But the character of much of their work makes this assumption impossible. It is, in fact, quite true that many of them were more interested in practical aims than in the advancement of economic science. We may talk of the S assum nm°ta°’ Pfions implicitly involved in Ricardo’s tions. works. In reality we do not know what those assumptions were; we only know what assumptions we should make in order to reach the same conclusions, and they may be very different from “the mind of Ricardo.” Ricardo’s works, in fact, do not explain a theoretical system, but contain the matured reflexions, more or less closely reasoned, of a man of great mental power looking out on the world as it appeared to a business man experienced in affairs. The conclusions of such a work are of wider significance than the assumptions we attribute to the author would warrant. They are not expressed in terms which satisfy our canons of scientific accuracy. Dissected sentence by sentence, the book may be shown to be a mass of inconsistencies. If it has the misfortune to be systematized by an enthusiastic but dull and incompetent disciple, it may
appear even absurd. But after all the misinterpretation of contemporaries and the destructive criticism of later times, the book as a whole leaves upon us an impression of peculiar strength and charm, and imparts a sense of the relations of things truer, because less mechanical, than the laboured reasoning of smaller men. Such is the character of much of the work of Ricardo and some of his contemporaries. We think that the decay of interest in these writers involves a real loss, and that students of modern problems may do worse than read Ricardo and his school. Some of the criticism of their works, necessary and useful as it has been, will probably be corrected later on by that breadth of view and sense of proportion which has enabled us to appreciate justly the achievements of lesser men in more remote times. But rehabilitation in accordance with the canons of historical justice will not restore the lost influence of the Ricardian school. Their achievements in the 19th century will be fully acknowledged, but the relevance of their work to the problems of the 20th century will be admitted less than at the present time. In a subject like economics it must always be very difficult to decide how far a departure from the traditional form and expression of its main doctrines is EconomjCS necessary or desirable. No one who is really ex- a coaserperienced in economic investigation cares to va«ve emphasize the originality, still less the revolu- science‘ tionary character of his own work. It is much more likely than not that some principle which for the moment seems new, some distinction which we may flatter ourselves has not been observed before, has been pointed out over and over again by previous writers, although, owing to special circumstances, it may not have received the notice it deserved. Economics is therefore, on the whole, an intensely conservative science, in which new truths are cautiously admitted or incorporated merely as extensions or qualifications of those enunciated by previous writers. This procedure has its advantages, but it may easily become dangerous by destroying the influence of the science it is meant to preserve. It is not unlike the procedure of the canonists and casuists of the Middle Ages with regard to the doctrine of usury, by which the doctrine was to all appearances preserved intact while in reality it was stripped of all its original meaning by innumerable distinctions “ over-curious and precise.” In the same way the doctrines of the classical economists may be adapted by interpretation clauses and qualifications the exact force of which cannot be tested or explained, so that we do not know whether the original proposition is to be considered substantially correct or not. The result will be that while the doctrines are apparently being brought into closer correspondence with the facts of life, they will in reality be made quite useless for practical purposes or economic investigation. It is easier to point out the danger than to suggest how it should be met. The position we have described is no doubt partly due to the unsettlement of economic opinion and the hostile criticism of old-established doctrines which has characterized the last generation. Or it may be the result of economic agnosticism, combined with unwillingness to cut adrift from old moorings. Whatever the cause, the complete restatement of economic theory, which some heroic persons demand, is clearly impossible, except on conditions not likely to be realized in the immediate future. The span of life is limited; the work requires an extensive knowledge of the economic literature of several countries and the genera features of all the important departments of modern economic activity. In general theory special studies by other men cannot play the same part as they do in historical and statistical work. In historical and statis-
