Principles Of Political Economy By William Roscher, Professor of Political Economy at the University of Leipzig, Corresponding Member of the Institute of France, Privy Counsellor To His Majesty, The King Of Saxony. From the Thirteenth (1877) German Edition. With Additional Chapters Furnished By The Author, For This First English And American Edition, On Paper Money, International Trade, And The Protective System; And A Preliminary Essay On The Historical Method In Political Economy (From the French) By L. Wolowski The Whole Translated By John J. Lalor, A. M. Vol. I. New York: Henry Holt & Co. 1878 Contents  Translator's Preface.  Author's Preface. (1st Edition.)  From The Author's Prefaces. (2d to 11th Edition.)  Preliminary Essay.  Introduction.  Chapter I. Fundamental Ideas.  Section I. Goods—Wants.  Section II. Goods.—Economic Goods.  Section III. Goods.—The Three Classes Of Goods.  Section IV. Of Value.—Value In Use.  Section V. Value.—Value In Exchange.  Section VI. Value.—Alleged Contradiction Between Value In Use And Value In Exchange.  Section VII. Resources Or Means (Vermögen).  Section VIII. Valuation Of Resources.  Section IX. Wealth.  Section X. Wealth.—Signs Of National Wealth.  Section XI. Of Economy (Husbandry).  Section XII. Economy.—Grades Of Economy.  Section XIII. Political Economy.—The Economic Organism.  Section XIV. Origin Of A Nation's Economy.  Section XV. Diseases Of The Social Organism.  Chapter II. Position Of Political Economy In The Circle Of Related Sciences.  Section XVI. Political Or National Economy.  Section XVII. Sciences Relating To National Life.—The Science Of Public Economy.—The Science Of Finance.  Section XVIII. Sciences Relating To National Life.—Statistics.  Section XIX. Private Economy—Cameralistic Science.  Section XX. Private Economy. (Continued.)  Section XXI. What Political Economy Treats Of.  Chapter III. The Methods Of Political Economy.  Section XXII. Former Methods.  Section XXIII. The Idealistic Method.  Section XXIV. The Idealistic Method. (Continued.)  Section XXV. The Idealistic Method. (Continued.)  Section XXVI. The Historical Method—The Anatomy And Physiology Of Public Economy.  Section XXVII. Advantages Of The Historical Or Physiological Method.  Section XXVIII. Advantages Of The Historical Method. (Continued.)  Section XXIX. The Practical Character Of The Historical Method In Political Economy.  Book I. The Production Of Goods.  Chapter I. Factors Of Production.  Section XXX. Meaning Of Production.  Section XXXI. The Factors Of Production.—External Nature.  Section XXXII. External Nature.—The Sea.—Climate.  Section XXXIII. External Nature.—Gifts Of Nature With Value In Exchange.  Section XXXIV. External Nature. (Continued.)  Section XXXV. External Nature.—Elements Of Agricultural Productiveness.  Section XXXVI. External Nature.—Further Divisions Of Nature's Gifts.  Section XXXVII. External Nature.—The Geographical Character Of A Country.  Section XXXVIII. Of Labor.—Divisions Of Labor.  Section XXXIX. Labor.—Taste For Labor.—Piece-Wages.  Section XL. Labor.—Labor-Power Of Individuals.  Section XLI. Labor.—Effect Of The Esteem In Which It Is Held.  Section XLII. Of Capital.—The Classes Of Goods Of Which A Nation's Capital Is Made Up.  Section XLIII. Capital.—Productive Capital.  Section XLIV. Capital.—Fixed Capital, And Circulating Capital.  Section XLV. Capital.—How It Originates.  Chapter II. Co-Operation Of The Factors.  Section XLVI. The Productive Coöperation Of The Three Factors.  Section XLVII. Productive Co-Operation Of The Three Factors. The Three Great Periods Of A Nation's Economy.  Section XLVIII. Critical History Of The Idea Of Productiveness.  Section XLIX. Critical History Of The Idea Of Productiveness.—The Doctrine Of The Physiocrates.  Section L. The Same Subject Continued.  Section LI. The Same Subject Continued.  Section LII. Idea Of Productiveness.  Section LIII. The Same Subject Continued.  Section LIV. Importance Of A Due Proportion In The Different Branches Of Productiveness.  Section LV. The Degree Of Productiveness.  Chapter III. The Organization Of Labor.  Section LVI. Development Of The Division Of Labor.  Section LVII. Development Of The Division Of Labor.—Its Extent At Different Periods.  Section LVIII. Advantages Of The Division Of Labor.  Section LIX. Conditions Of The Division Of Labor.  Section LX. Influence Of The Extent Of The Market On The Division Of Labor.  Section LXI. The Division Of Labor—Means Of Increasing It.  Section LXII. The Reverse, Or Dark Side Of The Division Of Labor.  Section LXIII. Dark Side Of The Division Of Labor.—Its Gain And Loss.  Section LXIV. The Co-Operation Of Labor.  Section LXV. The Principle Of Stability, Or Of The Continuity Of Work.  Section LXVI. Advantage Of Large Enterprises.  Chapter IV. Freedom And Slavery.  Section LXVII. The Origin Of Slavery.  Section LXVIII. The Same Subject Continued.  Section LXIX. Origin Of Slavery.—Want Of Freedom.  Section LXX. Emancipation.  Section LXXI. Disadvantages Of Slavery.  Section LXXII. Effect Of An Advance In Civilization On Slavery.  Section LXXIII. The Same Subject Continued.  Section LXXIV. The Same Subject Continued.  Section LXXV. The Same Subject Continued.  Section LXXVI. (Appendix To Chapter IV.) The Domestic Servant System.  Chapter V. Community Of Goods And Private Property. Capital—Property.  Section LXXVII. Capital.—Importance Of Private Property.  Section LXXVIII. Socialism And Communism.  Section LXXIX. Socialism And Communism. (Continued.)  Section LXXX. Socialism And Communism. (Continued.)  Section LXXXI. Community Of Goods.  Section LXXXII. The Organization Of Labor.  Section LXXXIII. The Organization Of Labor. (Continued.)  Section LXXXIV. The Organization Of Labor. (Continued.)  Section LXXXV. The Right Of Inheritance.  Section LXXXVI. Economic Utility Of The Right Of Inheritance.  Section LXXXVII. Landed Property.  Section LXXXVIII. Landed Property. (Continued.)  Chapter VI. Credit.  Section LXXXIX. Credit In General.  Section XC. Credit—Effects Of Credit.  Section XCI. Debtor Laws.  Section XCII. History Of Credit Laws.  Section XCIII. Means Of Promoting Credit.  Section XCIV. Letters Of Respite (Specialmoratorien).  Book II. The Circulation Of Goods.  Chapter I. Circulation In General.  Section XCV. Meaning Of The Circulation Of Goods.  Section XCVI. Rapidity Of Circulation.  Section XCVII. Freedom Of Competition.  Section XCVIII. How Goods Are Paid For.—The Rent For Goods.  Section XCIX. Freedom Of Competition And International Trade.  Chapter II. Prices  Section C. Prices In General.  Section CI. Effect Of The Struggle Of Opposing Interests On Price.  Section CII. Demand.  Section CIII. Demand.—Indispensable Goods.  Section CIV. Influence Of Purchaser's Solvability On Prices.  Section CV. Supply.  Section CVI. The Cost Of Production.  Section CVII. Equilibrium Of Prices.  Section CVIII. Effect Of A Rise Of Price Much Above Cost.  Section CIX. Effect Of A Decline Of Price Below Cost.  Chapter CX. Different Cost Of Production Of The Same Goods.  Section CXI. Different Cost Of Production Of The Same Goods. (Continued.)  Section CXII. Exceptions.  Section CXIII. Exceptions. (Continued.)  Section CXIV. Prices Fixed By Government.  Section CXV. Influence Of Growing Civilization On Prices.  Chapter III. Money In General.  Section CXVI. Instrument Of Exchange. Measure Of Value. Barter.  Section CXVII. Effect Of The Introduction Of Money.  Section CXVIII. The Different Kinds Of Money.  Section CXIX. The Metals As Money.  Section CXX. Money—The Precious Metals.  Section CXXI. Value In Use And Value In Exchange Of Money.  Section CXXII. Value In Exchange Of Money.  Section CXXIII. The Quantity Of Money A Nation Needs.  Section CXXIV. The Quantity Of Money A Nation Needs. (Continued.)  Section CXXV. Uniformity Of The Value In Exchange Of The Precious Metals.  Section CXXVI. Uniformity Of The Value In Exchange Of The Precious Metals. (Continued.)  Chapter IV. History Of Prices.  Section CXXVII. Measure Of Prices,—Constant Measure.  Section CXXVIII. Value In Exchange Estimated In Labor.  Section CXXIX. The Precious Metals The Best Measure Of Prices.  Section CXXX. History Of The Prices Of The Chief Wants Of Life.  Section CXXXI. History Of The Prices Of The Chief Wants Of Life. (Continued.)  Section CXXXII. History Of The Prices Of The Chief Wants Of Life. (Continued.)  Section CXXXIII. History Of The Prices Of The Chief Wants Of Life. (Continued.)  Section CXXXIV. History Of The Prices Of The Chief Wants Of Life. (Continued.)  Section CXXXV. History Of The Values Of The Precious Metals.—In Antiquity And In The Middle Ages.  Section CXXXVI. Effect On The Discovery Of American Mines Etc. On The Value Of The Precious Metals.  Section CXXXVII. Revolution In Prices At The Beginning Of Modern History.  Section CXXXVIII. Revolution In Prices.—Influence Of The Non-Monetary Use Of Gold And Silver.  Section CXXXIX. History Of Prices.—Californian And Australian Discoveries.  Section CXL. Revolution In Prices.—Its Influence On The National Resources.  Section CXLI. Effect Of An Enhancement Of The Price Of The Precious Metals.  Section CXLII. The Price Of Gold As Compared With That Of Silver.  Section CXLIII. The Price Of Gold As Compared With That Of Silver. (Continued.)  Appendix I. Paper Money.  Section I. Paper Money And Money-Paper.  Section II. Advantages And Disadvantages Of Paper Money.  Section III. Kinds Of Redemption.  Section IV. Compulsory Circulation.  Section V. Resumption Of Specie Payments.  Section VI. Paper Money—A Curse Or A Blessing?  Footnotes [pg iii] Dedication. TO WILLIAM H. GAYLORD, ESQ., COUNSELLOR AT LAW, OF CLEVELAND, OHIO, TO WHOSE BROTHERLY CARE IT IS LARGELY DUE THAT I LIVED TO TRANSLATE THEM, THESE VOLUMES ARE AFFECTIONATELY INSCRIBED. [pg v] Translator's Preface. [...]... the study of Political Economy Its advantages are the same here, its tendencies the same, and the same motives exist to induce us to use it here In describing the successive phases of the question in the case of law, we have performed an important part of the task we had imposed upon ourselves, of vindicating the employment of the historical method, in the sphere of Political Economy The study of history... powerful props of property, the complement of man, the material reflection of his spiritual power; and capital, the fruit of abstinence, the symbol of moral power and the result of enlightened activity History walks with a firm step, because it feels secure in a knowledge of the laws of human nature, and in its experience of the successive manifestations of social life Instead of the vagueness of ideal conceptions,... alienum puto.”—Terence.3 “Ista præpotens, ac gloriosa philosophia.”—Cicero, De Or., I, 43.4 I It is no foolish desire to make a vain display of citations, that induces us, at the beginning of this essay, intended to point out the results of the application of a new method to the study of Political Economy, to invoke the authority of a poet and moralist, of a jurisconsult and of a philosopher The writer finds... when the process of elucidation above referred to shall have been thoroughly finished, the future will accord both to Ricardo and Malthus their full meed of honor as political economists and discoverers of the first rank.1 [pg 001] Preliminary Essay Preliminary Essay On The Application Of The Historical Method To The Study Of Political Economy, By M Wolowski, Member Of The Institute Of France “Nunquam... vanish before the touch of this solid study This shows us how firm and unshaken are those reforms which have begun by taking hold of the minds of men, the precise spirit of which had penetrated into the souls of whole nations before they had manifested themselves in facts Law and Economy constitute a part of the life of nations in the same way that language and customs do The power of history in no way... declined calls to the Universities of Munich, Vienna and Berlin, but that I have never regretted remaining in Leipzig.” The acknowledgments of the translator are due, in the first place, to the eminent author himself, for the revision of the plate-proof of the entire work, and then to Professor WILLIAM F ALLEN, of the University of Wisconsin, for his interest in the progress of the enterprise, and for many... nature Witnessing the evolutions of humanity, following the development of social facts and theories, we better discern principles, and grow wary in relation to the alchemists of thought, who imagine that society may be made to undergo a transformation between the rising and the setting of the sun As there is a natural law, so, too, there are certain principles of Political Economy which emanate from philosophy,... convinced that of the many citations in this work, not one has been made from a vain desire of the display of erudition Part of them serves as the necessary proof of surprising facts adduced, but which are little known Another part of them is intended to incite the reader to the study of certain questions nearly related to those treated in the text, but which are still different from them The object of the... upon the science as only one part of the course of moral philosophy which he taught at Glasgow, and which embraced four divisions: 1 Universal theology.—The existence and attributes of God; principles or faculties of the human mind, the basis of religion 2 Ethics.—Theory of the moral sentiments 3 Moral principles relating to justice.—In this, as we learn from one of Adam Smith's pupils in a sketch... he attaches to them, either of a misunderstanding or of the imperfect idea which the Stoics had conceived of the essence of natural law In vain Cujas exhausted all the resources of his noble intellect to explain it.13 [pg 012] It is necessary to draw a distinction between physical law and the law (droit) of intelligent beings Doubtless the existence of men as well as that of animals is limited by time . Principles Of Political Economy By William Roscher, Professor of Political Economy at the University of Leipzig, Corresponding Member of the Institute of France, Privy. national economy of agriculture and the related branches of natural production; the third, the national economy of industry and commerce; the fourth, of the economy of the state and of the commune. Economy. —The Economic Organism.  Section XIV. Origin Of A Nation's Economy.  Section XV. Diseases Of The Social Organism.  Chapter II. Position Of Political Economy In The Circle Of