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Principles of Political Economy (J.S. Mill, 1871), vol. 2

For works with similar titles, see Principles of Political Economy.
 

PRINCIPLES

OF

POLITICAL ECONOMY.

 

 

VOL. II.



 

PRINCIPLES

 

OF

 

POLITICAL ECONOMY

 

WITH

 

SOME OF THEIR APPLICATIONS TO SOCIAL PHILOSOPHY.

 

BY

JOHN STUART MILL.

 

IN TWO VOLUMES.

VOL. II.

 

SEVENTH EDITION.

 

LONDON:

LONGMANS, GREEN, READER AND DYER.

1871.

 

LONDON:

SAVILL, EDWARDS AND CO., PRINTERS, CHANDOS STREET.

COVENT GARDEN.

 

 

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
  228.