Professional Documents
Culture Documents
0551 BK
0551 BK
POLITICAL ECONOMY.
FOUR LECTURES
DELIVERED AT THE
BY THOMAS HODGSKIN,
FORMERLY IiONORARY SECRETARY TO THE IIq$TITUTIO)_.
"The laws which determine the prosperity of nations axe not the work of
man ; they are derived Irom the natm_ of thiags. We do not establish ; we
discover them. '_ 1. B. ,Say.
LONDON:
1827.
LONDOI_
PRINTED BY S, AND 11. BENTLEY_ DORSET STREET.
TO
MY DEAR SIR,
DEDICATION. Xlll
pentone/Ue,
_ 19,I_.
PREFACE.
INTRODUCTION.
BOOK I.
NATURAL CIRCUMSTANCES WHICH INFLUENCE
THE PRODUCTIVE POWER OF LABOUR.
CHAPTER I.
CHAI_rER II.
CHAPTER III.
Political economists have not inquired into the natural laws re-
gulating the progress of knowledge. It does not depend ex-
clusively on division of labour which is preceded by inventions
and discoveries. This fact illustrated by Hindostan and other
countries. Progress of knowledge depends on general natural
laws. Uniformity of the progress of civilization. Influence
of necessity as caused by an increasing population. Illustration
from agriculture. Individual genius the result of the general
progress. Illustration of Mr. Watt. Manual dexterity must
be united with observation, i._atural and necessary increase of
knowledge from an increase of people. Influence of govern-
ments in adding to knowledge. Page 76..-99
CHAPTER IV.
CHAPTER V.
CHAPTER VI.
TEADE.
CHAPTER VIII.
MONEY.
CHAFFER IX.
PRICES.
CHAFFER X.
_C.
INTRODUCTION.
of continually
recurringplaguesand want ; and arejgo
norant,slothful,
revengeful,
blood-thirsty,
andbarbarous.
Individualsmust be abletoobtainwith tolerable faci-
litythemeans ofsubsistence toincrease innumbers ;so
thatthenaturalgrowthofnationMgreatness, suchaswe
witness in America, and the prevalence of individual
comfort and morality, are strictly coincident. On the
other hand, when nations cease to increase in numbers,
when they begin to decay, we may be quite sure the
power of the natural principle of population is so great,
that in them the mass of the people cannot easily ob-
tain the means of subsistence. Individual poverty, a
scanty population, its slow growth, or national decay,
also accompany one another.
It may be easily anticipated, that the increase of a
nation, or its stationary state, will be accompanied by
different degrees of productive power. " Among the
savage nations of hunters and fishers," such as were the
only inhabitants of America and New Holland, before the
Europeans went to those countries, "' Every individual,'"
says Dr. Smith, " who is able to work, is more or less
employed in useful labour, and endeavours to provide,
as well as he can, the necessaries and conveniences of
life for himself and such of his family or tribe as are
either too old or too young, or too infirm, to go a hunt-
ing and fishing. Such nations, however, are so miser-
ably poor, that from mere want, they are frequently re-
duced, or at least think themselves reduced, to the ne-
cessity of sometimes directly destroying, and sometimes
abandoning their infants, their old people, an:l those
atiticted with lingering diseases, to perish with hunger,
or to be devoured by wild beasts. Among civilised and
thriving nations, on the centrary, though a great number
ILLUSTRATED BY GREAT BRITAIN° 1_
WealthofNations, booki.chap.i.
t Introduction to Population Returns. Vide ParL Papers.
14 PROPORTION O_ PEOPLE WHO LABOUR.
Of nl ame.
" " With an almost boundless extent of good
fertile land, a people may suffer from famine, which is
never experienced in countries less favoured by _hese
• For these extracts from Humboldt, the reader may see
"'Principles of Political Economy," by Mr. Malthus, p. 382, et
sub. ; or the original work, " Essai Politique sur la Nouvetle
Espagne."
FZRTILITY DOES NOT PREVENT FAMINE, 19
Principesd'Economie Politique,p. 6.
22 ALL WEALTH THE PRODUCE OF LABOUR.
CHAPTER I.
CHAPTER II.
}s, that the whole produce of the land, under this species
of management, has been increased one third. ''i
M. Say is wrong, perhaps, in ascribing this improve-
ment to a chance conception. It was the result of
continued observatlon; and its advantages had to be
shown by repeated experiments, before it was adopted
,}u those soils where fallows can be dispensed with.
Ite also estimates much too high the advantages of
the conception: for farther experience has shown, that
fallows cannot ahvays be advantageously dispensed
with on all soils. But there can be no doubt, by
the agriculturist having recourse to them much less
frequently than formerly, together with the introduc-
tion into husba_dry of several different green crops,
by which a greater number of cattle can be kept at all
times, and subsistence secured for them through the
winter, ensuring the agriculturist against the loss of
them; by which, therefore, not only the quantity of
animal food, but also the quantity of manure, mid ulti-
mately the quantity of corn are increased,_that the pro-
duce of what is sometimes ridiculously called our old
worn-out soil, has been augmented, without adding to
labour, fully one-third within the last century.
The introduction of potatoes into European hus-
bandry is another example of improvement effected in
agriculture by observation and knowledge. They were
brought from America to Europe, either by Sir Waiter
Raleigh or under his influence, it is generally suppose:l,
about the year 1586._ An acre of land cultivated with
this root, will yield, it is stated by competent autho-
pended, always pointed due North, and but for the re-
corded observations of geographers, astronomers, and
travellers,--the fruit of many years close attention,--by
which the mariner is enabled to shape his course straight
across the pathless ocean, the utility of this most mag-
nificent of all the time-improved inventions of our race,
would have been very limited. Even after much of this
knowledge was acquired, or one hundred and fifty years
ago, two and even three years were consumed in go-
ing to and returning from India ; since the year 1800,
that voyage has been completed within seven months,
and may be performed with ease in less than one year.
The effects of this more rapid navigation, on the pro-
ductive power of labour, may perhaps be best illustrated
by the alteration which has taken place in the price of
tea, since it became in Europe one of the luxuries, if not
one of the necessaries, of life. The price of any commo-
dity, the reader will remember, may in general be taken,
in a rough way, as an index both to the quantity of
labour required to bring it to market, and to the quan-
tity of labour those who want it must give to obtain it.
When tea was first brought to Europe, about the
year 1610, the price--the chief cost consisting in the
expense of bringing it--was from 6l. to 101. sterling,
the pound weight. It continued to sell in this country
for tDs. per pound, the price at Batavia being then
2s. 6d or 3s., till towards the year 1700;* and at pre-
sent the retail price in the shops is between 5s. and
16s. This includes a heavy duty on tea ; it includes
the retailers' and merchants' profit, and it includes a
still heavier tax even than that paid to the government,
= Phillips's
History
ofCultivated
Vegetables.
Art.Tea.
66 PRICE OF TEA AT DIFFERENT PFRIODS.
* Quarterly
Review_No.Ixvii,
forJune1826.
70 THE COTTON MANUFACTURE.
Political economists have not inquired into the natural laws re-
gulating the progress of knowledge.mIt does not depend ex-
clusively on division of labour which is preceded by inventions
and discoveries.--This fact illustrated by Hindostan and other
countries.mProgress of knowledge depends on general natural
laws.mUniformity of the progress of civilization.--Influence
of necessity as caused by an increasing population.--Illustration
from agrlculture.--Individua] genius the result of the general
progress.--Illustration of Mr. Watt._Manual dexterity must
be united with observations--Natural and necessary increase of
knowledge from an increase of people.DInfluence of govern-
merits in adding to knowledge.
CHAPTER IV.
change his work and his tools every half hour, and to
apply his hand in working different ways almost every
day of his life, renders him almost always slothful and
lazy, and incapable of any rigorous application, even
on the most pressing occasion. Independent, there-
fore, of his deficiency in point of dexterity, this cause
alone must always reduce considerably the quantity of
work which he is capable of performing.'*
" 3d. With regard to the effect of the division
of employment in facilitating the inven/ion of _-
chines and processes for abridging and saving labour,
it is obvious that those engaged in any branch of in-
dustry, must be more likely to discover easier and
readier methods for carrying it on, when the whole
attention of their minds is devoted exclusively to it,
than if it were dissipated among a variety of objects.
But it is a mistake to suppose, as has been sometimes
done, that it is only the inventive genius of workmen
and artificers that is whetted and improved by the
division of labour. As society/ advances, the study of
particular branches of science and of philosophy becomes
the principle or sole occupation of the most ingenious
men. Chemistry becQmes a distinct science from natural
philosophy ; the physical astronomer separates himself
from the astronomical observer, the political economist
from the politician, and each meditating exclusively,
or principally, on his peculiar department of science,
attains to a degree of proficiencyand expertness to
which the general scholar seldom or never reaches."ff
I have already mentioned the reservation with which
the statement, that division of labour promotes the in-
• Wealth of Nations, i. p. 14.
Article, Political Economy, Supp. Encydop. Britt.
ILLUSTRATION YROM DAILY PIt_CTICE. ]07
CHAPTER V.
to counterbalancing
socialcauses,
might make us doubt
the correctness
of the explanation
:_Ireland isone of
the most denselypeopledcountriesofEurope,and that
one in which population
hasmade themost astonishing
progress,yet Irelandis at thistime conspicuousfor
theignoranceand povertyof the mass of itspeople.
This is,however,only an apparent exception.We
learnfrom Spenser the poet,and Sir John Davis,
who are unquestionable authority,
that in thereignof
Elizabeth, the Irishwere absolutesavages. When
Swiftlivedand wrote,they were notmuch betterand
were certainly more poorand wretched,though notso
numerous as at present. In fact,sincethe reignof
Elizabeth,theyhave improvedconsiderably ; but cut
offby theirpeculiarlanguageand still more by their
politicalcondition,
from free communicationwith the
restof the empire,even with thatpartof theirnomi-
nalcountrymen who speakthe Englishlanguage and
holddominionover them--theircommerce and manu-
factures annihilated by thetradingjealousyofEngland,
and professing areligion proscribed by the rulingparty,
the Catholicsof Irelandhave not advanced equally
with the Englishand Protestantinhabitants of the
empire. If I haverendereditprobable, however,that
an addition of heads and hands naturally multiplies
productive power ; if it cannot be doubted_ that an in-
crease of population clears the forests of America, and
improves the agriculture and manufactures of Britain ;
if it roll the tide of civilization over the New World,
from the Atlantic to the Pacific, and improve the arts,
though it may not add to the comfort of the labourers,
in the Old; if it be a source of happiness in America,
where a family, to those who are willing to labour for
CAUSES OF THIS EXCEPTION, ]33
CHAPTER VI.
CHAPTER VII.
TRADE.
Cochineal,indigo,and variousothersubstancesused
in dying,arenotthe produceofBritain;they,orsub-
stitutesforthem, couldperhapsbe procuredor made
here,but atsuch a costaswould check,ifnotruin,se-
veralofour most flourishing
manufactures. Much of
our furniture,
and even the frames of our houses,are
made offoreignwood. Our chairand cabinetmakers,
and our house carpenters, are as dependent on the
forestsof Honduras and Norway, as thecottonmanu-
facturersareon thecultivatorsofGeorgia,forthe raw
materials theywork intobeautifulfurnitureor invalu-
abledwellings.
Oar breakfast,and by common consent,itseems the
bestwe can have, isprepared from a plant brought
from the farthestpartof Asia,sweetened by thejuice
of a cane cultivatedmost successfullyin the West
Indies. We might, undoubtedly,liveon oatmeal,or
beer and meat, or somethingelsewhich grows or is
made in England,but we do not,becausewe llketea
better. Our meat is seasonedwith spices,the pro-
duce ofislandsin the Indian Ocean ; and the sweet-
meats,such asfigs, prunes,etc,withwhich we indulge
our passionforniceties, orwhich we giveour children,
on accountof theircheapnessand gratefulness, come
from Germany, France, Spain, and Turkey. The
orangesthatare so plentifully hawked in our streets,
in the winterpart of the year,which moisten the
speakingorgansof our law mystifiers and ofour law-
makers,aswellasthebawlersin theuppergalleryatthe
theatres;which relieve theparchedpalateofthe fever-
sick patient, and gratify the apparently natural longing
of all classes for a little fresh vegetable acid, when no
other fruit can be procured ; are brought thousands of
rru._-rrDm_ o. 159
totheprosperity
ofboth countries,--teaching
theworld
thatthe organization
of men into different
political
societies,
orintolittle
hordesand knotsof slaves,has
nothingwhatever to dowith theirprogressinwealth,
exceptto impede it;and thatthetradewhich isbenefi-
cialwhen carriedon by thesubjectsof the same state,
isequallybeneficialwhen theyhave differentmasters.
No man can supposethat the chancewhich made
our former continental dominionsa partof thepatri-
mony ofthe Bourbons,insteadof theiradding to the
almostnumberlessdependenciesof the GueIphs,--or
thatthewisdom which tookthe peopleofNorth Ame-
rica
from underthe dominion of our sportingsquires,
intriguingstatesmen,and greedy capitalists, which,
God knows !we findenough burdensome,mcan alterin
the smallestdegree thosenaturaland eternallaws
whichregulateproduction, and by which themutual
exchangeofthe variedproductsof different climates,
stimulatesindustry,adds to enjoyment,and bestows,
likeCharity,a doublebles.sing,
foritblessesthosewho
buy and thosewho sell.
Ifthereaderisnow sensibleof the benefitsof fo-
reigntrade,a few words willelucidatethe utility
of
thewholesalemerchant. Itisplainthattheproducers
ofcommoditiestobe exchanged,whose businessitisto
produceas much withaslittlelabouraspossible,can-
notattendtothe wants ofmankind in distantpartsof
theworld. The wlne-makermust be acquaintedwith
theprinciples
offermentation,
and thecloth-maker
must
know theartsofweaving,fulling,
anddying;buttosend
eitherwine or clothto a suitablemarket,requiresa
knowledgeofthe wants and tastesofdifferent
commu-
nities.Such knowledge is quitedistinctfrom that
]7_ MERCHANTS ARE PRODUCTIVE LABOURERS.
CHAPTER VIII.
_ONEY.
CHAPTER IX.
PRICES.
i0 too exclusively
cultivation, whichat isthe immediate
in all cause demand,
cases increased of extended
and
temporary higher prices. Their opinion has grown up
within the last thirty years, and within that period
there was a considerable rise in the price of corn,
which, in this country, thrown back as it was by the
conduct of its rulers on its own resources, might be
distinctly traced to the increased difficulty then ex-
perienced in obt-q_niug the necessary supplies of food.
But if we extend our observations over a longer period,
we shah find no proof of a gradual and gener_ rise in
the price of corn as population increases.
In Dr. Smith's valuable work, there is a table con-
taining the average price of wheat, calculated in our
present money, in the Windsor market for several cen-
turies. The invention of paper money, it will be _e-
membered, has eontributod to render metallic coin less
PRICE OF WHEAT
Years. £. s. d.
1423 -- 1451 1 1 3
1453 -- 1497 0 14 1
1499 -- 1560 0 10 0
After this period, the effects of the discovery of
America, and consequent cheapness of the precious
metals, was felt on money prices ; their value being
every where much lowered, and money prices much
raised. Prior to the discovery of America, the value
of silver, it is supposed, was gradually rising, owing to
the increasing difficulty felt throughout Europe of ob-
taining the necessary supply. The average money
price of the quarter of wheat became subsequently
much higher, and was as follows :--
£.s.d.
From 1561 to 1601 2 7 5
1602 -- 1620 2 0 7
1621 -- 1636 1 19 6
1637 -- 1700 2 5 4
1701 -- 1764 1 15 1
* 1766 -- 1770 2 7 8
t1792 -- 1796 2 19 6
1796 -- 1801 4 10 10
1801 -- 1804 3 5 6
Since the last mentioned period, the price has varied
considerably. The average of five years, ending with
1811, was 968. the quarter, while the average of ten
years, ending with 1823, during which time we have
had the corn laws in full operation, was 68s. Now, it"
• This statemen_ is taken from Principles of Political Eco-
nomy, by Mr. Malthus.
"1"All the subsequent stawments are copied from Mr. Tooke's
work On Prices.
PRICE _ALLS IN THE PItOGRES$ OF SOCIETY,
CIIAPTER X.
vested in the ground, nor can there be any other than the/about
of the labourer ; and his task-master, having already grown rich
on it, now trim to mm_ a further reward for I_ opprenioa.
CAPITAL UNDER DIFFEEENT CIRCUMSTANCES. 243
CONCLUSION.
LON D¢)N :