questions involved, under their own headings. In this article we propose therefore to confine ourselves to discussing the character and subject-matter of the science, indicating its relation to other sciences, and explaining the methods by which economists reach their conclusions.
We understand by economics the science which investigates the manner in which nations or other larger or smaller communities, and their individual members, obtain food, clothing, shelter and whatever else is considered desirable or necessary for the maintenance and improvement of the conditions of life. It is thus the study of the life of communities with special reference to one side of their activity. It necessarily involves the scientific examination of the structure and organization of the community or communities in question; their history, their customs, laws and institutions; and the relations between their members, in so far as they affect or are affected by this department of their activity.
At the root of all economic investigation lies the conception of the standard of life of the community. By this expression we do not mean an ideal mode of living, but the habits and requirements of life generally current in a community or grade of society at a given period. The standard of life of the ordinary well-to-do middle class in England, for example, includes not only food, clothing and shelter of a kind different in many respects from that of a similar class in other countries and of other classes in England, but a highly complicated mechanism, both public and private, for ministering to these primary needs, habits of social intercourse, educational and sanitary organization, recreative arrangements and many other elements. Many influences operating for a long period of time on the character and the environment of a class go to determine its standard of life. In a modern industrial community it is possible to express this standard fairly accurately for the purposes of economic investigation in terms of money (q.v.). But it is doubtful whether the most complete investigation would ever enable us to include all the elements of the standard of life in a money estimate. The character, tastes and capacity for management of different individuals and groups differ so widely that equal incomes do not necessarily imply identity of standard. In the investigation of past times, the incommensurate elements of well-being are so numerous that merely money estimates are frequently misleading. The conception of the standard of life involves also some estimate of the efforts and sacrifices people are prepared to make to obtain it; of their ideals and character; of the relative strength of the different motives which usually determine their conduct. But no carefully devised calculus can take the place of insight, observation and experience. The economist should be a man of wide sympathies and practical sagacity, in close touch with men of different grades, and, if possible, experienced in affairs.
It is evident that no permanent classification is possible of what is or is not of economic significance. No general rules, applicable to all times, can be laid down as to what phenomena must be examined or what may be neglected in economic inquiry. The different departments of Character of subject-matter.human activity are organically connected, and all facts relating to the life of a community have a near or remote economic significance. For short historical periods, indeed, many phenomena are so remotely connected with the ordinary business of life that we may ignore them. But at any moment special causes may bring into the field of economic inquiry whole departments of life which have hitherto been legitimately ignored. In times past, biblical exegesis, religious ideals, and ecclesiastical organization, the purely political aims of statesmen, chance combinations of party politics and the intrigues of diplomatists, class prejudice, social conventions, apparently sudden changes of economic policy, capricious changes of fashion—all these causes and many others have exerted a direct and immediate influence on the economic life of the community. In our own day we have had many illustrations of the manner in which special circumstances may at once bring an almost unnoticed series of scientific investigations into direct and vital relation with the business world. The economist must, therefore, not only be prepared to take account of the physical features of the world, the general structure and organization of the industry and commerce of different states, the character of their administration and other important causes of economic change. He must be in touch with the actual life of the community he is studying, and cultivate “that openness and alertness of the mind, that sensitiveness of the judgment, which can rapidly grasp the significance of at first sight unrelated discoveries or events.”
Some people are of opinion that the factors to be taken account of in economic investigation are so numerous that progress on these lines is impossible. It would certainly be impossible if we had to begin de novo to construct the whole fabric of economic science. But, as we shall see, it is no more necessary to do this in the world of science than it is in the world of business or politics. There is in existence a vast store of accumulated knowledge, and few, if any, departments of economics have been left quite unilluminated by the researches of former generations. Progress is the result of adaptation rather than reconstruction. It must be remembered also that economic work in modern times is carried on by consciously or unconsciously associated effort, and although it must always require high qualities of judgment, capacity and energy, many of the difficulties which at first sight appear so insuperable give way when they are attacked. In some ways also the study of highly developed organizations like the modern industrial state is simpler than that of earlier forms of society.
In the earliest times for which we have abundant material the economic life of England had already reached in certain directions a high degree of complexity. Even in the rural districts, manorial records reveal the existence of a great variety of classes and groups of persons engaged in the performance of economic functions. The lord of the manor with his officials and retainers, the peasantry bound to him by ties of personal dependence and mutual rights and obligations, constituted a little world, in which we can watch the play of motives and passions not so dissimilar as we are sometimes led to believe Ancient and modern conditions in England.from those of the great modern world. In many a country district the gradations of social rank were more continuous, the opportunities of intercourse more frequent, and the capacity for organization greater than in modern times. The manorial accounts were kept with precision and detail, and we are told that a skilled official could estimate to the utmost farthing the value of the services due from the villein to his lord. The manor was indeed self-sufficient and independent in the sense that it could furnish everything required by the majority of the inhabitants, and that over the greater part of rural England production was not carried on with a view to a distant market. But in the earliest times the manor was subjected to external influences of great importance. Vast areas of the country were in fact under the single control of a territorial lord or an ecclesiastical foundation. Every manor composing these great fiefs was likely to be affected by the policy or the character of the administration of the feudal lord, and he, again, by the policy or the difficulties, the strength or the weakness, of the central government. Foreign trade and foreign intercourse were undeveloped, but their influence was in historical times never entirely absent, while the influence of Roman law and the Christian Church constantly tended to modify the manorial organization. In the towns the division of labour had proceeded much further than in the rural districts, and there were in existence organized bodies, such as the Gild Merchant and the crafts, whose functions were primarily economic. But one of the most striking characteristics of town life in the middle ages was the manner in which municipal and industrial privileges and responsibilities were interwoven. In modern times the artisan, however well trained, efficient and painstaking he may be, does not, in virtue of these qualities, enjoy any municipal or political privileges. By means of his trade union, co-operative society or club he may gain some experience in the management of men and business, and in so far as the want of a sufficient income does not constitute an insuperable difficulty, he may share in the public life of the country. But in his character as
