-MM. 
 
 
 mm.pm 
 
 

 h" c « " '^ « '<?* 
 
 ^ 
 
 *'V°-V.-.V"cP^ 
 
 .■i'^ 
 
 
 ((\~-sr.5i, c 
 
 ■^.C^v* a-i' Ki- ■•'. 
 
 
 
 i^. ,v"V =V'iW-" '>^% -' i'W-' .c^'^. =V'>i^ 
 
/- 
 
 ^.% 
 
 
 
 
 
 
 
 
 %^ '^^ 
 
 ,0 
 
 8 1 -\ V^ 
 
 
 
 .,^''% 
 
 
 
 ^)^ ^^ 
 
 ^^ V?^V^ ''^'^' ^^^"^^VS^ 
 
 ^0 
 
 
 
 
 ^" ^X '<y. ,-P^ N 
 
> 
 
 \^' 
 
 V 
 
/ 
 
LECTUF^E NOTES 
 
 ON 
 
 Economics and Politics 
 
 BY 
 
 ^ 
 
 DAVID J/HILL, LL, D„ 
 
 President of the University at Lewisburg. 
 
 W 
 
 Sal- d..O:, ; ."^ 
 
 /5:PR7C 188' 
 
 S^r 
 
 UNIVERSITY AT LEWISBURG, PA. 
 
 PRINTED FOR THE SENIOR CLASSES. 
 1884. 
 
 'Or WASv 
 
^^ 
 
 : ^ 
 
 6^ 
 
 COPYRIGHTED 1884, 
 
 B. K. FOCHT, PRINTER, 
 
 LEWISBURGH. (PA.) "SATURDAY NEWS," 
 
 LARGEST PAPER IN PENn'a. 
 
LESTURES on E0ONOMI0S. 
 
 _<{|o^= ^^^^ =^oi>- 
 
 I. 
 
 THE PROYINSE OF ESONOMISS, 
 
 1. DEFINITION OF ECONOMICS. 
 
 Economics is the Hcience of exchanges. It is also sometimes 
 defined '"''the snenre of valuex,'' or '"''the science of wealth.'' The 
 objection to the two latter definitions is thnt the words "value" 
 and "wealth" are ambiguous, while an exchange 7s a simple act. 
 
 2. OTHER NAMES FOR THE SCIENCE. 
 
 In 1803, Jean Baptiste Say, a French economist, named the 
 science '''political economy^'' which has since been its most widely 
 accepted name. Whately proposed to call the science '"catalac- 
 tics^'' from a Greek verb meaning to exchange. Walker calls it 
 ''the science of wealth.'' Thompson names it ''national econo- 
 my." Many writers treat some of its topics under the name 
 "social science." Macleod has recently suggested the name "e- 
 conomics" which best marks the sphere of the science. 
 
 3. DEFINITION OF AN EXCHANGE. 
 
 An exchange is the rendering of mutual seVvices. 
 
4. MEANING OF SEHV ICP^S. 
 
 By "".services'" we mean, in Economics, anj^hinj/ rendered 
 for something in return. Services are either (1) Comuwdities, as 
 coifee, sugar, wheat; (^) Claims, as notes, bonds mortgages; (8) 
 Personal Services^ as of a lawyer, a physician, or a hiborer. (i) 
 
 5. POSSIBLE CASES OF EXCHANGE. 
 
 The only possible cases of exchange are the following six : 
 (1) a commodity for a commodity, as sugar for coffee ; (2) a com- 
 modity for a personal ser\ ice, as a gold dollar for legal advice ; (8) 
 a commodity for a claim, as a hoi'se for a note ; (4) a personal 
 S(^rvice for a personal service, as a physician's visit f)r a lawyer's 
 advice; (5) a personal service for a claim, as a day's labor for a 
 dollar bill ; (6) a claim for a claim, as a United States greenback 
 for a bond. (2) 
 
 6. ANALYSIS OF AN EXCHANGE. 
 
 The analysis of any exchange gives us the following element?: 
 — (1) two persons, each of whom serves and is served ; (2) two 
 desires, the desire of each to obtain the service of the other; (3) 
 two efforts^ the eff'ort of each to sei've the other ; (4) two services, 
 the service rendered by each person ; (5) two estini'ites, the esti- 
 mate of each person on the two services as related to his desires ; 
 (6) two satisfactions, the satisfaction of each desire. (3) 
 
 7. THE THEORY OF EXCHANGES. 
 
 Man is a being of desires. His desires can be gratified only 
 by effort. The power of gratifying diff'erent desires varies in 
 men. Hence one man estimates the service of another as com- 
 pared with his own service, and finds a satisfaction in an ex- 
 change. This is the foundation of all civilization. 
 
 8. TRANSFERS WHICH ARE NOT EXCHANGES. 
 
 Economics treats only of exchanges. The central fact in 
 the science is a sale. Some transfers of property are not sales, 
 and hence fall^ outside the province of Economics. Such trans- 
 fers are (1) the kind offices of friendship and love ; (2) lineal in- 
 heritance without a will ; (3) every form of robbery. 
 
II. 
 
 VALUE. 
 
 1. DEFINITION OF VAlilTE. 
 
 Value is the relation of mutual purchase between two servi- 
 ces, established by their exchange. (4) 
 
 2. VALUE A RELATION. 
 
 It is a popular supposition that value is ^ qualify of objects. 
 That it is not, may be seen from a simple illustration: A bushel 
 of wheat has the same qualities in Minnesota that it has in New 
 York. The difference in value is found by adding the cost of 
 transportation. If the crop should increase, the value would 
 diminish, yet the qualities of wheat would remain the same. 
 
 3. A RELATION OF 3IUTUAL PURCHASE. 
 
 Wheat, for example, has no absolute value, because its value 
 rises and falls according to that of other commodities. If gold is 
 twice as plenty and wheat remains the same in quantity, wheat 
 has twice as much value as before, as related to gold ; that is, it 
 will bring twice as much gold. Value is, therefore, a relation of 
 mutual purchase. 
 
 ^. A RELATION BETWEEN TWO SERVICES. 
 
 Wheat miojht be exchanged for services of any kind. If a 
 farmer were dying, he would give a hundred bushels of wheat for 
 medicine that would save his life. If the physician were starv- 
 ino", he would furnish his medicine for a verv small amount of 
 wheat. So of any other forms of service. Value is, therefore, a 
 relation between two services. 
 
 5. A RELATION ESTABLISED BY EXCHANGE. 
 
 The relation is not a fixed one, but must be established by 
 exchange. To-day wheat brings ^1.00 ; to-morrow, $1.05. So 
 with everything exchangeable. Values fluctuate. Hence value 
 is established by exchange. This illustrates in full the defini- 
 tion of Value. 
 
 6. VALUE NOT UTILITY. 
 
 Value is often confounded with utility. Water and air are the 
 most useful things in the world, but they ordinarily have no 
 
value. Diamonds and pearls have great value, but almost no 
 utility, as compared with their value. We often hear of ''ex- 
 changeable value" and "intrinsic value." The former is value 
 proper, the latter is utility. (5) 
 
 7. VALUE NOT PRICE. 
 
 Value and price are often confounded. Price is value in 
 money. Money is itself a coinmodity ; and, like every other 
 saleable thing, has value. 
 
 8. THE MEASURE OF VALUE. 
 
 Men have differed widely in their views as to the true 
 measure of value. The chief opinions are as follows : (1) Ricar- 
 do says it is labor', (2) Malthus, the labor which nn article can 
 command; (3) Adam Smith, corn; (4) J. S. "SliW^ the cost of pro- 
 duction ; (5) Carey, the cost of reproduction, (e) 
 9. THE LAW OF VALUE. 
 
 The, one universal principle of value is the Latv of Demand 
 and Supply. Demand is the desire of pui chasing something 
 coupled with the power of purchasing it. Supply is any class of 
 exchangeable things offered for sale against money or other ex- 
 changeable things. As long as "demand an^ supply are equal 
 values are unchanged. When the demand for anything increas- 
 es, the supply remaining the same, the value increases. When 
 the supply increases, the demand remaining the same, its value 
 diminishes. To increase the demand or diminish the supply has 
 the same effect upon values. C) 
 
 III. 
 
 PI^ODUGTION. 
 
 1. DEFINITION OF PRODUCTION. 
 
 Production is effort with reference to a sale. As it is the 
 effort to satisfy a desire, it is a creation of value. Only those 
 efforts which aim at a sale are productive, (s) 
 
 2. MISUSE OF THE TERM "PRODUCTION." 
 
 Many erroneously suppose that production is confined to 
 
making some material substance. Tliey accordingly condemn all 
 men but farmers and miners as non-|»roducers, bc^cause these two 
 classes nlone add any valuable substances to man's possessions. 
 But, in truth, no one creates. Wl,ce\er adds ai.} vulut t^ any 
 thing is a producer. 
 
 3. CLASSES OF PRODUCERS. 
 
 Man's whole effort in creating values consists in modifying 
 that which previously existed. He may modify it in tlire<' ways : 
 (1) by traitsmutatioN., as the farmer by the help of the clieniical 
 forces of the earth and air transmutes seeds into vegetables, nnd 
 thest by the help of animal organizations into milk, butter, chc-se, 
 meat and leather ; (2) by transformation, as the mechanic ni:ik(^s 
 iron and wood into useful articles, and the manufactui-er trans- 
 forms wool and cotton into cloth ; (3) by trajisportaticn., as the 
 merchant aided by carriers brings together the commodities of 
 the world to the phices where they are v/anted. (9) 
 
 4. CONDITIONS OF PRODUCTION. 
 
 The conditions which determine the productions of a coun- 
 try are : (1) the industrial genius of a people growing out of their 
 bodily and mental difterences ; (2) their territorial ndvantaties, 
 as water-power, ore, timber, soil, etc ; (3) great acriiinits, as 
 discoveries in the arts and sciences, wars and persecutions. (lO) 
 
 5. THE SOURCE OF ALfi VALUE. 
 
 All value is derived from productive effort. Water has no 
 value in the country. It has value in the city, because it has to 
 be brought there. Land has no value in itself. It is worth 
 what it costs to improve it. Land may be had for nothing where 
 there is no civilization, (ii) 
 
 6. THE ELEMENTS OF PRODUCTfON. 
 
 The creation of value involves three elements: (1) natural 
 agents, or the forces of nature, such as wind, water, steam, metals, 
 land and the domestic animals ; ['2) labor, or personal hunum 
 exertion with reference to a sale; (3) capital, or the accumu- 
 lation of pre-exerted industry, as tools, buildings and money. 
 
 T. RELATIONS OF THESF: ELEMENTS. 
 
 Natural assents are of the greatest utiliiy, but until claimed 
 they have no value. They are equally free in the begini ing to 
 
all. Labor alone renders them valuable, as when water-power is 
 claiined and Mpplied, or a machine inverited to utilize a natmal 
 force Capital is but the savinojs from the proceeds of labor. 
 Hence Irabor is the primary and important element in production. 
 There was no value in the world until it was produced by labor. 
 
 8. CONDITIONS OF GREATEST PRODUCTION. 
 
 Production attains its maximum under three conditions: — 1) 
 the perfect application of natural agents; (2j a division of labor; 
 (3) the co-operatioft of labor and capital. 
 
 IV. 
 
 NATUf^AL AGENTS. 
 
 1. DEFINITION OF NATURAI. AGENTS. 
 
 By natural agents is meant e very thini»;, outside of man, fur- 
 nished gratuitously by nature, through which production may be 
 increased or facilitated. These are land, wood, minerals, rivers, 
 lakes and seas, wind, steam, electricity, gravitation, etc. (13) 
 
 2. USEOF NATURAI. AGENTS. 
 
 The principal use of natural agents is 10 produce motion. We 
 have seen that production is but a modification of something by 
 transmutation, transformation or transportation. Tht essential 
 of all these is motion. (i4) 
 
 3. HUMAN DIRECTION NECESSARY. 
 
 The natural agents are of no value until they are directed 
 to a purpose. Human intervention is, therefore, necessary. 
 
 Steam cannot draw a train of cars until man makes a locomotive 
 and lays tracks. Wind will not waft the sails of commerce until 
 man can adjust sails to the wind. Electricity will not transmit 
 news until man makes a battery and stretches wires. 
 
 4. THE INVENTOR A PRODUCER. 
 
 It is clear Jthat he who has found a new way to utilize any 
 natural agent, has created a new value. The inventor is, there- 
 fore, a producer. 
 
5. RELATION OF NATURAL AGENTS TO LABOR. 
 
 Tile relation of natural agents to labor may be briefly sum- 
 med up as follows : (1) they decrease r he a//?^^/^^ of labor m a 
 ffiven form ; (2) they relieve men of the most ditficalt labor ; (8) 
 they elevate the character of the labor ; (4) they increase the rj- 
 ^/'rtni.y of labor. iiS) 
 
 fi. RELATION OF NATURAL AGENTS TO VALUE. 
 
 From the fore2;oirig it is plain that natural agents tend soon 
 to diminish values by incre^tsing the sup|»ly. This is a benetit 
 for thus labor is (iirected into new channels, and new objects of 
 desire are produced. These in turn become cheaper. Thus 
 finally every object of desire is obtainable at a less cost tiian for- 
 merly and may he enjoyed by all. (l^) 
 
 T. ADVANTAGES OF INANIMATE AGENT.*. 
 
 Of natural agents, some are animate, as horses and cattle; 
 others, inanimate, as steam, water-po\Aer, etc. The advantages 
 of inanimate agents are as follows : (1) they can, within a small 
 compass, produce a vastly greater amount of niomeyituw tlian 
 animate agents; (2) they are continuous, never needii.g re^t ; 
 (3) they are \es^ costli/; (4) they 'mGYense person/ al safety', (5) 
 they do not require the infliction oi pain ; (6) they do not lose 
 power with the increase of indocitif, as animals do. (ii) 
 
 8. THE APPLICATION OF MOTION. 
 
 Natural agents, such as the lever, wheel and axle, pulley, 
 screw, wedge, and inclined plane, are useful in applying motion. 
 They offer the following advantages: (1) they change the 
 ^zVe^^iW of power ; (2) they exchange power for rclociti/ \ (8) 
 they increase the amount of power ; (4) they aid in performing 
 operations too delicate for human touch ; (5) they accumulate 
 power ; (6) they regulate the application of power. (18) 
 
 V. 
 
 LABO!^. 
 
 1. DEFINITION OF LABOR. 
 
 Labor is any human exertion that demands something for 
 
itself in exchange. Effort without expectation of return is not 
 hibor ill the economic sense. (iij>) 
 
 2. CI-ASSIFICATION OF LABOR. 
 
 Labor may be rudely clussifie.l as follows: (1) romnion, as 
 that of railroad laborers, teamsters, and farm-hands, requiring 
 almost no apf)renticeship, and receivino; the lowest remunei-ation ; 
 (2j skilled, as that of carpenters, blacksmitbs, and bricklayers, 
 requirinor some apprenticeship, and receiving higher remuner- 
 ation ; (8) ftrofe.ssional, as rhatof lawyers, physicians and artists, 
 requiring technical and extended preparation, and receiving the 
 highest rewards. (20) 
 
 3. DIVISION OF LABOHS 
 
 By the division of labor is m 'ant the dividinii^ up of a com- 
 plex process or employment into particular pans, iti such a way 
 that each person employed may <levote himself wholly to one sec- 
 tion of the process. By such a division each pers(>n becomes more 
 efficient and production more profitable. (2i) 
 
 4. ADVANTAGES OF THF DIVISION OF LABOR. 
 
 Tbe advantages of the division of labor are as follows: (1) 
 it gives increased dexterity, (2) it secures a better knowledge of 
 business on the part of the workman ; (3) there is a savinyjof t/me 
 in passing from one part of a job to another ; (4) the invi^ntioii of 
 tools and processes is facilitated ; (5)a better adaptation of physical 
 and mental abilities is secured; {(}) the poiver of e a /At al in pro- 
 duction is increased ; (7) it shortens apprenticeship ; (8) social 
 development is assisted. (^''^) 
 
 5. THE LIMITATION OF THE DIVISION OF LABOR. 
 
 The division of labor cannot be indefinitely extended with 
 profit. The chief limitations are. the following: (1) the extent 
 of the market', (2) the nature of the employment; (3) the extent 
 of the enterprise. (2.3) 
 
 6. DISADVANTAGES OF THE DIVISION OF LABOR. 
 
 Among the disadvantages of a minute division of labor we 
 may enumerate (1) tliat it tends to enervate the laborer by limit- 
 ing his b< dily activity ; (2) that it contracts the mental pofcers by 
 making man a mere machine; (3) that it destroys the health and 
 diminishes the population ; (4) that it hinders private individual 
 
en- 
 
 e7iterpnse, and fosters corporate monopolies ; (5) that it cone 
 tmtea the laboring classes into communities which breeci laboi 
 combinations and strikes, and which may suifer by a sudden cal- 
 amity. {'Z\) 
 
 VI. 
 
 ■ SAPITAL. . 
 
 1. DEFINITION OF CAPITA!.. 
 
 Capital maybe defined as any valuable thing outside of man 
 himself from whose use springs a pecuniary increase or profit. It 
 is always a product, and is not capital unless used for the sake of 
 gain. "^Personal powers are not capital, for they cannot be sold. 
 Their use is sold, and the return is wages. (25) 
 
 2, THE FORM^ OF CAPITA!.. 
 
 The most con^mon forms of capital are as follows : (1) Im- 
 plements ; (2) raw materials; (3) huildings used for productive 
 purposes ; (4) permanent improvements in land ; (5) investtnents 
 in aid of locomotion, as railroads and canals ; (6) prodwts loaned 
 or rented, or retained for that purpose ; (T) most funds intended 
 for ivages ; (8) the national money. (26) 
 
 3. FIXED AND CIRCU!.ATING CAPITAL. 
 
 Capital has been distinguished as ^'fixed'" and ^'circulating." 
 Fixed capital is every kind of property employed in production, 
 which, from its nature, cannot be advantageously changed to any 
 other use than that for which it was originally designed ; as, land, 
 buildings, ships, machines. Clrculatijig cipital consists of those 
 articles which can be readily changed from one purpose to an- 
 other; as, farm-stock, produce, raw materials, money. Circulat- 
 ing capital tends to become fixed, but circulating capital accuu)- 
 lates more rapidly than fixed. (27) 
 
 !. THE ORIGIN OF CAPITA!.. 
 
 The origin of all capital is evident. It is accumulated by 
 saving a part" of the proceeds of labor. Hence ca] ital represents 
 
the labor of the past as truly as the workman represents the labor 
 of the present. (28) 
 
 5. REI.ATION OF CAPITA!. TO I.ABOR. 
 
 Labor is most productive when aided by capital. Capital 
 depends for increase upon a union with labor. Hence there is 
 no natural antagonism between these chief factors of wealth. 
 They are partners in production. They are also competitors. 
 But they prosper or fail together. (29) 
 
 6. COST OF PRODUCTION. 
 
 The production cTf most values involves two elements, — 
 labor and capital. The cost of production, accordingly, varies 
 with the eo>it of labor and the coat of capital. This partnership 
 of labor and capital affords the ynly true solution of tlie question 
 of wages. 
 
 7. COST OF tABOR. 
 
 The cost of labor is made up of three elements: (1) effi- 
 ciency of the labor ; (2) the rate of nominal tvaQcs paid ; (8) the 
 cost to the employer of that in which the tvages are paid, (ao) 
 
 8. COST OF CAPITAI.. . 
 
 The cost of capitil is made up of three elements also : (1) 
 the rate per cent. ; (2) the time for which the capital is advanced; 
 (3) the liability of the capital to ivear out. 
 
 VII. 
 
 WAGES. 
 
 1. DEFINITION OF WAGES. 
 
 Wages are the remuneration of labor. They should, there- 
 fore, be proportional to the kind and amount of labor, and are 
 regulated by the supply and demand. Wages reach their maxi- 
 mum when the employer would rather do without the labor than 
 give more ; the minimum when the laborer would rather do with- 
 out any wages than take less. 
 
2. KINDS OF WAGES. 
 
 As wages are the remuneration ofsorae form of power, they 
 may be classed according to the powers of man. These are (1) 
 physical power, which is neardest in its nature to that of natural 
 agents, most common, and most easily obtained ; (2) incntal 
 power, which is more rare and less easily obtained ; (3) mor<d 
 power, which is the rarest and least easily obtained of all, and 
 is in (greatest demand, when combined with the necessary mental 
 power, as the guardian of great trusts. (3i) 
 
 3. NOMINAI. AND REAI. WAGES. 
 
 A distinction should be made between nominal and real 
 wages. Nominal wages are the equivalent in money received by 
 the laborer, while real wages are the equivalent in those objects 
 of desire for which he labors. (32) 
 
 4. THE RISE AND FAI.I. OF WAGES. 
 
 While wages rise and fill with the rise and fall of commof^i- 
 ties, they do not vary in regular proportion. Commodities rise 
 more rapidly than wages and lall less rapidly. The reason of 
 this is that commodities may be held without great loss for a 
 prospective rise, while labor must be sold at the present moment, 
 or so much is lost forever, (as) 
 
 5. DISTINCTIONS OF SEX. 
 
 Women usually receive about fifty per cent, less than men 
 for the same* kind of service. The economic reason is apparent 
 from the following facts : (1) the yiuniher^ ot the sexes the world 
 over are about equal ; (2) the employ ruen is accessible to women 
 are comparatively few ; (3) the labor assigned to women is, lor 
 the most part, of a more disptmsahle eliaracter. The reason of 
 the fact, if not its justice, may now be seen by Jipplyii'g the law 
 of demand and supply. (34) 
 
 6. THE WAGE-FUND THEORY. 
 
 The wage fund theory is stated by* J. S. Mill as follows: 
 "There is supposed to be, at any given instant, a sum of wealth 
 which is unconditionally devoted to the payment of wages of 
 labor. This sum is not regarded as unalterable, for it is aug- 
 mented by saving, and increases with the progress of wealth ; 
 but it is reasoned upon as at any given moment a ))ie-determined 
 amount. More than that amount it is assumed that the waj-es- 
 
receiving classes cannot possibly divide among them ; that 
 amount, and no less, they cannot but obtain. So that the sum 
 to be divided being fixed, the wages of each depend solely on tlie 
 divisor — the number of participants." (35) 
 
 7, OBJECTIONS TO THE THEORY. 
 
 The following objections are brought against this theory : 
 (1) wages are not generally paid out of capital ; {'2) wages are 
 paid out of the product of industry ; (3) ca| ital is not a measui-e 
 of wages ; (4) wages do not always fall with an increase of labor- 
 ers. The theory was abandoned by Mill. (30) 
 
 8. THE IMPROVEMENT OF THE LABORER'S STATE. 
 
 The condition of the laborer may be improved only by in- 
 creasing his power of competition. This may be assisted (1) by 
 friitjality^ which enables him to withhold his services without 
 starving ; (2) by education, which enables him to watch his own 
 interests, employ his savings as capital, oflfer his services where 
 they will be best rewarded, and increase the efficiency of his 
 labor ; and some would add (3) by combination for mutual protec- 
 tion. This last method will be considered by itself. 
 
 VIII. 
 
 LABOR eOMBINATIONS. 
 
 1. THE RIGHT OF LABORERS TO ASSOCIATE. 
 
 The capitalist and laborer are alike citizens, and as such, 
 should enjoy equal rights. If capitalists may associate for gain, 
 so may laborers. If capital may incorporate itself, so may labor. 
 Many combinations of laborers have been termed for mutual 
 benefit. 
 
 2. TRADES-UNIONS. 
 
 A Trades-union is an association of operatives for the pro- 
 tection of their trade and the increase of their wages. They, in 
 general, aim {1 ) to fix the rate of wagea ; (2)to limit the hours of 
 
labor ; (3) to support those wJw are idle duririg strikes. Some- 
 times they attempt (1) to punish delinquents according to theii 
 own hiws ; (2) to compel others to join their body or desist frou) 
 labor ; (3) to limit the number of apprentices ; (4) to force their 
 employers to increase their wages or submit to violence. (37) 
 
 3. THR RIGHTS OF TRADES-UNIONS. 
 
 There can be no doubt that such associations have the right 
 to combine for the first class of purposes. If one man has a right 
 to do things, ten men have; and so an indefinite number. But 
 it is equally clear that these combinations transcend both civil 
 and moral law when they attempt to accomplish the second class 
 of purposes. (38) 
 
 4. THE EXPKDIENCY OF TRADES-UNIONS. 
 
 There is some doubt of the expediency of such combinations 
 for the laborer. The following facts should be considered : ( 1 ) 
 the organization is attended with considerable e.rpen^e ; (2) tlie 
 laborer loses his liberty by putting himself in the hands of otiiers ; 
 (3) such organizations break down confidence between labor ana 
 capital ; (4) wages cannot be permanently raised by such means. 
 
 (39) 
 
 5. THE HOURS OF LABOR. 
 
 Movements have been made to fix the hours of labor by law. 
 The impediments to this are (1) its effect upon capitalists, who 
 would lose by their capital remaining idle ; (2) its effect upon 
 workmen, many of whom work by the piece ; (3) the fact that 
 government can not rightly interfere contrary to the wishes of 
 either employer or employe. (4o) 
 
 6. EaUAtlZATION OF WAGES. 
 
 Some labor associations, and among writers John Rusk in, 
 insist that all persons of the same trade, skillful or unskillful, 
 industrious or indolent, should have equal wages. The result of 
 this would be (1) that the unskilled ivould find no employment ; 
 (2) that apprenticeship would be too costly for young men ; (3) 
 that the trades so regulated would become a monopoly ; (4) that 
 there would be no motive for improvement beyond mediocrity. 
 The only fair principle of compensation is, to pay according to 
 the quantity and quality of the work. 
 
IX. 
 
 PROFIT, INTEl^BST AND i^BNT. 
 
 1. PARTIES COMBINED IN PRODUCTION. 
 
 As laborers do not often possess much capital, and capitalists 
 do not always possess business enterprise, a third class ot men 
 eno-age in the union of capital and labor. These are employers. 
 The parties to pioduction are, then : (1) the laborer^ (-2) the 
 capitalist, and (3) the eniploi/er. (4i) 
 
 '^. DEFINITION OF PROFITS. 
 
 The share of the product which falls to the manager of an 
 enterprise, or the employer, is called ''profits." This term does 
 not include interest or rent. 
 
 3. THE RATE OF PROFITS. 
 
 The late of profits depends upon the law of demand and 
 supply. The tendency of profits is to become lower as society 
 advances. The tendency is owing to three principal causes : (1) 
 the acceleration of exchanges ; (2) the increase of qualified busi- 
 ness men ; (3) increased, fac^7^V^/ in the transmission of intelli- 
 gence. (42) 
 
 4. DEFINITION OF INTEREST. 
 
 fnterest is what is paid for the use of money. The right to 
 take interest has been questoned, and the practice has been stig- 
 matized. The right is based upon the equivalence of services. 
 
 5. THE RATE OF INTEREST. 
 
 The rate of interest depends upon (1) the productiveness of 
 labor in the place where the capital is used, for the interest must 
 be taken out of the profits ; (2) the suppli/ of capital and the de- 
 mand for it. 
 
 O. REASONS AGAINST USURY LAWS. 
 
 Usury laws attempt to fix the rate of interest by statute. 
 They are objectionable on the following grounds : (1) they in- 
 
friricre the evident right of free excLange ; (2) they may be a- 
 voided by trickery ; (3) they create unfair distinctions between 
 borrowers. (43) 
 
 7. DEFINITION OF RENT. 
 
 Rent is what is paid for the use of hind or any form of fi^xed 
 capital These forms of property are generally real-estate. Rent 
 implies two things :—(l) ownership, and (2) society; for land, 
 being originally a gift of God, would have no value if there were 
 no competition for its possession. (44) 
 
 8. CIRCUMSTANCES AFFECTING RENT. 
 
 Rent is affected by the following circumstances :—(l) loca- 
 tion; {2) fertility ; (S) population ; (4) application nf capit til ; (5) 
 appendages. (45) 
 
 X. 
 
 1. DEFINITION OF TRADE. 
 
 The technical term for the sum of all exchanges is "trade." 
 It is founded on a diversity of desires and a diversity of powers 
 to gratify them. (46) 
 
 2. KINDS OF TRADE. 
 
 Trade may be divided according to several principles. Ac- 
 cording to the quantity of goods handled, it is wholesale ©r re- 
 tail ; according to the articles handled, it is the iron, cotton, or 
 shoe tra-de, etc ; according to the geographical extent of the trade, 
 it is domestic or foreign ;— the latter being generally called com- 
 merce. 
 
 3. THE AMOUNT OF TRADE. 
 
 The amount of trade done by any community may be meas- 
 ured in the following manner : (1) the entire trade is the aggre- 
 
g;ite surplus pro lucts of all the people severalhj ; (2) the foreign 
 trade is the aggr gate surplus products of all the people collec- 
 tive 'i/ ; (8) the dom^estic trade is the entire trade minus the for- 
 eign. (4T) 
 
 4. CHARACTER OF A PEOPI^E'S TRADE. 
 
 As a rule those will trade most with one another whose 
 products are most different. The character of a people's trade is 
 determined by the following conditions: (1) soil and physical 
 conformation ; (2) climate ; (3) social condition ; (4) difference of 
 race. 
 
 5. TERRITORIAL DIV ISION OF LABOR. 
 
 Each nation has its natural advantages. China is adapted 
 to tea and silk ; Cuba,to sugar and fine tobacco; England, to use- 
 ful manufactures ; the United States, to the growth of cotton and 
 grain and almost every industry. Production, trade, and human 
 happiness, are all promoted by assigning to each land its ap- 
 pointed kind of usefulness. (48) 
 
 6. ADVANTAGES OF TRADE. 
 
 The following are some of the advantages of trade between 
 states and nations : (1) every nation may enjoy the products of 
 the whole world ; (2) every nation becomes tvealthy by disposing 
 of its surplus products ; (3) every nation becomes interested in 
 every other nation ; (4) wars become unprofitable, and the federa- 
 tion of the world is secured. 
 
 7. PHYSICAL IMPEDIMENTS TO TRADE. 
 
 Trade is obstructed by such barriers as seas and mountains. 
 All such may be summed up in one -word -location. Space and 
 resistance must be overcome in order to distribute commodities. 
 Every improvement in transportation brings all producers nearer 
 to a market. The sea which separates, also unites by its waters, 
 if we can only sail them ; even the mountain, which obstructs, 
 assists with its treasures of coal and iron, if we can only mine 
 them. (49) 
 
 8. LEGAL IMPEDIMENTS TO TRADE. 
 
 Government sometimes interferes with trade for four purpos- 
 es : 1; to raise a revenue ; (2) \o encourage certain industries 
 
at home ; (3) to maintain existing forms of industry; (4) to se- 
 cure commercial iii dependence. These purposes may be reduc- 
 ed to two : (1) to support itself', (2) to protect certain indus- 
 tries. The first we shall consider under the head of Taxation ; 
 the last in the following lectures on Protection and Free Trade. 
 
 XL 
 
 PP^OTESTION. 
 
 1. DEFINITION OF PROTFCTION. 
 
 Protection may be defined, "the estahlisliment on foreign - 
 goods ot such duties as are de^^igntd to cherish special iomis of 
 domestic industry." Such duties are not designed for revenue. 
 
 2. REASONS FOR PROTECTION. 
 
 The following are the principal arguments adduced by its 
 advocates in favor of protection: (1) It is the duty of a 
 state to promote the largest and fullest existence possible, and 
 th^ ivQe developinent on all sides o/ ^Ae national life. (2) In 
 peace a nation should prepare for war. (3) Biseyirninaiiov in 
 favor of home manufacturers \s justified by the heavy demand of 
 government upon them. (4) Protection is a wise economy of 
 the labor of a people by giving work to all. (5) Protection bene- 
 fits the farmer by raising the price of his products. (6) It reduces 
 the commercial clsiss, turning transporters into direct producers. 
 
 (50) 
 
 3. OBJECTIONS ANSWERED. 
 
 Protectionists answer objections to their theory as follows: 
 
 1) Objection. "Protection discriminates against the consumer 
 
 in favor of the producer." Answer. ''If there is any consumer 
 
 who is not a producer, he is insignificant." (2) (Objection. '"It 
 
 is everyone's interest to bu}^ in the cheapest market and sell in 
 
the dearest." Answer. "By buying in the cheapest market he 
 loses his dearest market." (3) Objection. "Protection sets aside 
 the natural advantages of a country." Ans7i}e7\ "The balance 
 of nature has been destroyed by the older countries having the 
 factories and compelling the younger to bring raw materials from 
 great distances." (4) Ohjcction. "Protection simjjly changes the 
 diiection of capital, without changing its amount or efficiency." 
 Answer. "Capital increases under protection, and declines in 
 its absence." (5) Ohjec^lon. "Protection does not protect." 
 Ans'wer. "This is denied." (6) Objection. "Protection dis-' 
 criminates against the poorer and more thinly populated districts 
 in favor of the older and richer." Answer. "It does not dis- 
 criminate against the farmer." (7) Objctiun. "The doctrine 
 ofprotection leads on logically to the platform of the Communists." 
 Answer. "Its chief advocates have not been communists, and 
 communism is a perversion of state interference in business 
 transactions." (/ji) 
 
 XII. 
 
 FREE TRADE. 
 
 1. DEFINITION OF FREE TRADE. 
 
 Free trade opposes protection, but does not oppose low 
 duties levied for revenue. It may, therefore be defined, the re- 
 moval of all discrimination of a governmental nature between ex- 
 changes, except for revenue. 
 
 2. REASONS FOR FREE TRADE. 
 
 The following reasons for free trade are offered by its advo- 
 
cates- (1) Free trade would bring ;l,e prochwtion of the ^^orld 
 to its niiixiiiium. (2) Free trade is in accordance with tlie 
 ZZJi^^cuoJJ Providence. • (8) Free trade nieans «A... 
 dance and ch-apness, while protection means scarcity «'d ea - 
 ness. (4) Free trade fully recognizes the rights of pniate 
 «™»«rfV, while protection, by curtailing, virtually denies them. 
 &ree trade allows a natural and stable eo.t of produeUm 
 while pr,>tection enhances and hazards it. (b) Free trade is the 
 friend of the laborimj clam'^, while protection is their enetny. (7) 
 Free trade has the sanction oi -.W ages of the world *hile p.o- 
 tection is at once a novelty and a decrepitude. (8) Free trade 
 is in harmony with the s/ziW? <i/>r«(/r«s«, while protection is di- 
 rectly opposed to it. (52) 
 
 3. AltEGED PAI.I..4CIES OF PROTECTION. 
 
 The advocates of free trade claim that the principal argu- 
 ments of protectionists are fallacious. Walker assails the follow- 
 in. propositions as fallacies : (1) That it isg'.od policy to protect 
 a manufacture, in its h.fanc,/ until it is well estallished, becau e 
 it will then take care of itselfand confer great wealth upon the 
 country. (2) That protection especially develops »»«««/«.«"«■.•<; 
 and manfacturing countries are found to be in fact richer than 
 those more exclusively agricultural. (3) That Ja,l.tar,ff dutus 
 by excluding foreign commodities and causing their productic.n 
 at home, rXe the%te .f adages, and thus benefit the laborer. 
 (4) That the introduction oi foreign fabrics th^i come int« dire.a 
 competition with our own must reduce tU ■^^>^'^ru-a"U>^^ sa"^ 
 miserable condition as the foreign laborer. (5) That a W 
 market should be cretited for agricultural products by restricting 
 the importation of manufactured articles and causing their pro- 
 duction in this country. (6) That the exportation of b'eadstufis 
 cotton and other agricultural products fatally ^■'''■'"'f ^I ' ^ ; 
 and therefore a home market should be created, that tb m,n 
 be prevented. (7 ) That the home capitalist is especially benehte.t 
 by protective duties which shut off competition with the cheaper 
 capital of the foreigner. (8) That unrestricted trade benefits 
 the mercantile and trading classes only, at the expense of all 
 others. (53) 
 
XIII. 
 
 MONEY. 
 
 1. DEFIXITION OF MONEY. 
 
 Money is a commodity used as a medium of exchan^ie and 
 a standard of value. Its functions are two : (1) to circulate as 
 a medium of exchange ; and [2) to serve as a standard of value. 
 (54, 
 
 2. THE MATERIAt OF MONEY. 
 
 Whatever is used as money must have value, and ought to 
 have fixed value. This last is impossible, as the value of every 
 thing changes with supply and demand. Cattle, hides, shells, 
 bullets, salt, tobacco, etc., have been used as money, but gold 
 and silver have been generally adopted. "Paper-money," as it 
 is called, will be treated of in its own place. It is not strictly 
 money, but a promise to pay money. (55) 
 
 3. ESSENTIAI.S OF A GOOD MEDIUM. 
 
 A good medium of exchange must possess three qualities : 
 (I) uniformity/ of value ; (2) durability ; (3) portability. 
 
 4. ESSENTIALS OF A STANDARD. 
 
 As a standard of value, money must possess, in addition to 
 the quality of uniformity of value, (I) divisibility into lower de- 
 nominations; (2) currency in all parts of the world; (3) suffici- 
 ency of quantity to meet the wants of traffic where small sums are 
 required. 
 
 5. ADVANTAGES OF GOLD AND SILVER. 
 
 The precious metals, gold and silver, have the following ad- 
 vantages as money: (1) they possess value; ('J) they are stable^ 
 or nearly so, in value ; (3) they are comparatively portable ; (4) 
 they are malleable ; (5) they are ofimiform quality ; (6) they are 
 
reiidWj alloyed (r refined; (7) they ^.tq nearly indp^tructihhhy 
 accident ; (8) they are universally appreciated ; (9) thev are ^v^^- 
 erally (i/fi^.W; (10) they are sufficiently plentiful; (H) they 
 are nearly inconsumable by use. (56) 
 
 6. COINAGE. 
 
 The precious metals were originally exchanged in bars or 
 ingots by weight. Convenience is promoted by coinage, or the 
 aphorized manufacture of the metals into units of value, and 
 multiples and divisors of those units. This involves three things : 
 (\) fixing the unit; (2) determining the amount o^ alloy ; (S) 
 i^tamping the coin with a government mark. The proper busi- 
 ness of government in coinage is to fix the unit and certifv by 
 its stamp that each coin is what it purports to be. Government 
 cannot impart any permanent value to a coin, except under the 
 law of supply and demand. (57) 
 
 T. THE DEBASEMENT OF COINAGE. 
 
 Government sometimes attempts to debase the coinage by 
 using a baser metal than the* world's standard, either wholly, as 
 in the substitution of a baser metal for gold, or in part as in the 
 case of an increased alloy. This simply lowers the value of 
 the denomination. (58) 
 
 XIV. 
 
 BI-MBTALLISM AND MONO-METALLISM, 
 
 1. TERMS EXPLAINED. 
 
 The terms hi-rnetallism and nwno-metaJlisni are of recei t 
 origin, and may be explained as follows : Bi-metallism is il <• 
 doctrine that the two precious metals, gold and silver, should 
 
circulate side by side, as legal tenders tor any amount. Mono- 
 uietallisin is the doctrine that gold, as the only recognized stand- 
 ard of the world, should be the only legal tender for all sums, 
 except a few dollars. * 
 
 2. ADV^ANTAGES OF BI-MRTAI.I.ISM. 
 
 The advantai^es of usino; both metals are said to be as fol- 
 lows : (1) gold alone does not furnish sufficiently small denomi- 
 natiovs for small transactions, while silver does ; (2) the appre- 
 ciation of gold IS so great as to do injustice to debtors who 
 coriiracted debts in greenbacks ; (8) the silver mines, if silver be 
 in demand, become a source of national wealth. 
 
 3. OBIKCTIONSTO BI-METAI.I.I*?M. 
 
 The following objections may be urged against a double 
 standard: (l) b\\\qv fluctuates more than gold; (2) a double 
 standard ivrougs creditors by paying debts in a debased coin ; 
 (3) the denionetization of silver by England, Germany, and the 
 Latin Union, renders silver of a less certain value. 
 
 4. GRESHAM'S LAW. 
 
 Sir Thomas Gresham, a financier of the time of Queen Eliz- 
 abeth, laid down the following law : " An inferior money, so 
 long as it circulates at all, drives a superior money out of the 
 circulation." The law rests upon the following facts : (1) men 
 pay their debts in the cheaper money, and hoard the better ; 
 2) they will be compelled to pay all foreign bills in gold. (59) 
 
 wi 
 
 5. ADVANTAGES OF A GOLD STANDARD. 
 
 The advantages of a gold standard are as follows : (1) gold 
 fluctuates in value least of all the metals ; (2) gold \s current the 
 world over ; (3) a gold currency renders trade steady, and in- 
 spires commercial confidence. 
 
 6. THE SOLUTION OF THE PROBLEM. 
 
 All the conditions of the case are met by the following plan : 
 (1) let gold be the sole standard of value and legal tender for all 
 large sums ; (2) let silver or paper dollars be issued by the Gov- 
 ernment redeemable in gold Oil demand; (3) let silver be legal 
 teiidei- for all sums under five dollars. 
 
XV. 
 
 PROMISES TO PAY. 
 
 1. THE NATURE OF CREDITS. 
 
 We have considered tlie exclian*.e of personal services and 
 commodities, but not that of claims. All these are property and 
 so may be exchanged. Commodities are property in the produc- 
 tion of the past; personal services, in that of the present; claims, 
 in that of the future. A claim is called a credit, from credo, I 
 believe, because it implies a belief in a future return. The liabil- 
 ity to meet a claim is called a debt, from debeo, I owe, because 
 it implies an obligation to render a service. Credits aie of two 
 kinds : (1) promise's to pay^ and (2) orders to pay. Promises 
 to pay are as follows. 
 
 2. KINDS OF PROMISES TO PAY. 
 
 1. Book Accounts. — These are the simplest form of prom- 
 ises to pay. Their disadvantages are as follows : (l)to the seller: 
 (a) he loses for a time the u&'e of his capital ; (b) he cann(.t or- 
 dinarily use the claim in gaining a credit with another ; (c) he is 
 liable to trust persons beyond their abilit}^ to pay ; (2) to the 
 buyer: (a) he is often charged an extra price ; (b) such debts ac- 
 cumulate beyond expectation ; (c) he has less satisfaction than in 
 making separate exchanges. (60) 
 
 2. Promissory Notes. — These are promises to pay after a 
 given date, commonly w^ith interest. They are negotiable, when 
 drawn to order, on the payee's endorsement. The promissory 
 notes of governments and corporations are usually called bonds. 
 Greenbacks are legal tender promissory notes issued by the Gov- 
 ernment, without interest. 
 
 3. Bank Bills. — These differ from ordinary promissory 
 notes in not bearing interest, in being redeemable in legal ten- 
 der on demand, and in being secured by bonds deposited with 
 the Government. 
 
 4. Bank Deposits. — A deposit does not signify in bank- 
 ing something left for safe keeping, but a right to draw on a 
 
bank for a given amount of money. The o»vnership of the thing 
 deposited passes over to the bank, and a cLiim is given for it. 
 
 5. Bank Discounts. — The banker buys a note for less 
 than its face value, and pays cash for it. He <loes not strictly 
 lend money, he buys credits for gain. Discounts is the differ- 
 ence between the face and the price of a claim. The banker who 
 buys the note owns a claim on the m.iker of the note or its en- 
 dorser equal to its face.' (ei) 
 
 XVI. 
 
 0!^DE!^S TO PAY, 
 
 1. KINDS OF ORDERS TO PAY. 
 
 1. Checks. — A check is a written order on a bank or a 
 person directing the p<j,yment (-f a sum of money to the bearer or 
 person named in the order. Checks are very convenient in the 
 business of exchange as they obviate the handling of large sum's 
 of money. A check should always be drawn to some one's order. 
 
 ?'. Bills of Exchange. — A bill of exchange is a written 
 instrument designed to secure the payment of a debt at a distance 
 without the transmission of money. Bills of exchange are the 
 principal means of balancing debts. 
 
 3. Circular Letters of Credit. — These are orders is- 
 sued by bankers in one country on associated banks in another 
 country, directing them to pay to the person named in the letter 
 such sums as the person accredited may need at that time and 
 place when and where the demand is made. (62) 
 
 2. THE EXTINGUISHMENT OF CREDITS. 
 
 Credits are extinguished in three ways:.(l) by the pay- 
 ment of money ; (2) by giving a new credit for an old one ; (3) 
 
by actfhig off opposite accounts, as in bool: accounts and clearing- 
 
 llOUSeS. (63) 
 
 3. THE ADVANTAGES OF CRKDIT. 
 
 Tlie advantages of credit are as follows : (1) credit puts 
 capital into tlie liands most likely to use it productively; ['2) 
 credit affords great facilities for adjusting the accounts of the 
 worlds commerce ; (3) credit, to a great extent, dispenses with 
 the use of metallic money, the cost of transporting which would 
 be consideiable, besides the risk. The business done in a single 
 year at the New York Clearing House, if transacted in silver 
 dollars, wOuld require 219.19-J cart-loads of silver, containing 
 1,000 lbs. each. The business done in a single day would re- 
 quire over 700 such carts, a train over a mile long. 
 
 4. DISADVANTAGES OF CREDIT. 
 
 There are the following disadvantages of cre«!it : ( 1 ) by mis- 
 placed credit, capital may be lodged in the hands of the unpro- 
 ductive consumer ; {2) uncertain credits may be the cause of a 
 commercial crisis. (64)' 
 
 XVII. 
 
 BANKS, 
 
 1. THE ORIGIN OF BANKS. 
 
 The word " bank " originally meant a mass, an accumula- 
 tion. It was first applied to a commercial institution in Venice, 
 in 1171, w^hen the Republic raised a loan by reijuiring from each 
 citizen one per cent, of all his property, on which he received 
 
five per cent, interest. In the fifteenth centurj', such institutions 
 became common, and have developed into the modern bank. 
 
 ^ 2. THE FUNCTIONS OF A BANK. 
 
 These are four: (1) it discounts mercantile paper in cash or" 
 credit ; (2) it is a firm for issuing [, aper promises to pay ; (8) it 
 is a place of deposit for funds ; (4) it is a clearing-Jiouse. 
 
 3. COLONIAL BANKS. 
 
 The earliest banking houses in this country were the land- 
 offices of the colonial government, which loaned their paper issues 
 on bonds and mortgages. 
 
 4. THE BANK OF NOIITH AMERICA. 
 
 This institution went into operation in 1782, in Philadel- 
 phia, under a charter of the State. It was so useful that When 
 Its charter was withdrawn by a rural opposition to it, it did bus- 
 iness without a charter, and the charter was restored in two years. 
 Banks were soon after opened in Boston, New York, and Bal- 
 timore. 
 
 5. FIRST BANK OF THE UNITED STATES. 
 
 This was chartered by Congress in 1791, on the proposition 
 of Alex. Hamilton. A wish to deprive the general government 
 of excessive power, led to its abolition on the expiration of its 
 charter in 1811. At this time there were some local banks with 
 State charters. 
 
 G. THE SECOND UNITED STATES BANK. 
 
 This was chartered in 1816, and continued until 1836. It 
 was opposed by Jackson. Its history is the theme of a bitter 
 controversy. Its dissolution was followed by the crisis of 1837. 
 
 (65) 
 
 7. THE lOCAt BANKS. 
 
 From 1836 to 1863 there was "no national banking system. 
 Each state chartered as many banks as it pleased. The system 
 had the following faults : (1) the banks were unequally distributed, 
 banking being free in some states and a monopoly in others ; (2) 
 the supervision of their management was imperfect, and the banks 
 were constantly breaking ; (3J the uncertainty of their solvency 
 
rendered the banks of only a local value, their bills being at a 
 discount, except at home. (66) 
 
 8. THK NATION AI. BANKING SYSTEM. 
 
 The present national banking system was introduced by 
 Salmon P. Chase, to meet the financial, necessities of the coun- 
 try during tht Kebellion. All the banks of issue in the United 
 States are national banks. Their notes are redeemable in green- 
 backs or coin, and are secured by deposits of the United States 
 bonds at the United States Treasury. Their sources of income 
 are the interest on their bonds, their discounts and collections. 
 They are generally solvent ; their money is national in its distri- 
 bution and at par with greenbacks, and they are under gover- 
 mental supervision. One disadvantage is that they ai'e unecjual- 
 ly distributed, being numerous in the East, and few in the West. 
 This explains the Western demand for inflation, as a new coun- 
 try requires capital for its development. The national banks 
 number about 2000. (6T) 
 
 XVIII. 
 
 THE NATIONAL SURRBNSY, 
 
 1. THE KINDS OF NATIONAL CURRENCY. 
 
 The present national currency of the United States consists 
 of (1) greenhacks, paper promises to pay, issued by the Govern- 
 ment, without interest, and without date of redemption ; (y) im- 
 tional hank notes, secured by the United States, redeemable in 
 legal tender, and certified by "the Government ; {^)gohi coin, whose 
 unit is the dollar of 23.22'grains ; (4) silver coin, whose unit is 
 
the dollar of 41 2J grains; -(5) the silver dollar of 420 grains, 
 called the trade dollar, designed for foreign trade ; (6) cert.ficate^ 
 of deposit, issued at the mint, and redeeraahle in coin. 
 
 2. THE SECURITY OF NATIONAL BANK NOTES. 
 
 Some anxiety has been felt about the final payment of these 
 notes. It is claimed that immediately before the panic of '73, 
 all the banks of the country held in legjil tender but 13.6 per 
 cent, of their liabilities on demand. Tliis is represented as the 
 cause of the panic. In reply, it may be said (1) that this per 
 centage compares favorably with that of the average legal tender 
 funds in banks in this country for the forty years previous; and (2) 
 that the national bank bills never fell below par with green- 
 backs. 
 
 3. CAUSE OF THE PANIC OF '73. 
 
 The chief financial cause of the disaster was the instability 
 of the national currency, resulting from a want of uniformity in 
 its value. For ten years there had been no fixed standard ot 
 value in this country. Men who contracted to pay $1,000 when 
 a greenback dollar was worth 35 cents in gold, were obliged to 
 pay $'i,000 when a greenback dollar was worth 70 cents in ^old, 
 for greenbacks were relatively twice as hard to obtain. While 
 gold was thus fluctuating, no man in extensive business knew how 
 much he owed. Debts were easily contracted, but could not be 
 easily paid. The failure of a few financial princes revealea the 
 insolvency of many, and general distrust at once precipitated the 
 crisis. 
 
 4. INFI.ATION OF THE CURRENCY. 
 
 As money was at once hoarded because of the general alarm, 
 there was a loud demand for new issues of greenbacks. In 1860, 
 there was 490,000,000 of cuirency to 31i millions of people, 
 and there was no complaint of insufficient currency. In 1870, 
 there was needed at the same ratio, less than 600,000,000 to 381 
 millions of people. Instead, there was 1285,000,000, or twice as 
 much money to each person as in i860. 
 
 5. THE REMEDY FOR THE TROUBLE. 
 
 So far as the remedy was financial, it was a return to 
 
a metallic standard of value, and a uniform currency. The 
 currency need not be metallic, but it must be instantly redeem- 
 able on demand. As gold is less variable than silver, the stand- 
 ard should be gold, the money of the world. 
 
 XIX. 
 
 TAXATION. 
 
 1. THE GROUND OF TAXATION. 
 
 Every organized society possesses a government. This, in 
 its legislative, judicial and executive functions, assumes the pro- 
 tection of persons and property. Taxation is the plan of gov- 
 ernment to compensate itself for this service. Government as- 
 sumes the authority of regulating the amount, the kinds, and the 
 methods of taxation, and the minority must conform to the decis- 
 ions of the majority. (08) 
 
 2. PRINCIPLES OF TAXATION. 
 
 The following principles, laid down by Adam k?mith, have 
 been generally accepted as axiomatic : (1) The subjects of every 
 state ought to contribute to the support of the government, as 
 neaily as possible, in proportion to their respective abilities ; 
 that is, in projiortion to the revenue they enjoy under the pro- 
 tection of the state. In the observance or neglect ot this maxim 
 consists what is called the equality or the inequality of taxation. 
 (2) The tax which an individual is bound to pay ought to be ce?^- 
 tahi. and not arbitrary. The time of payment, the manner of pay- 
 ment, the quantity to be paid, ought to be clear and plain to the 
 contributor and every other person. (3) Every tax should be 
 levied at the time and in the manner which is most likely to be 
 conveiiient to the contributor to pay it. (4) Every tax ought to 
 
be so contrived as to take out and keep out of the pockets of the 
 people a.s* little us possible, over and rtbove Avhat it brings into the 
 treasury of the state. Walker would add (5) The heaviest taxes 
 shouhl be imposed on those commodities, the consumption of 
 which is especially jjrejudicial to the- interests of the people. («$)) 
 
 3. KIXDS OF TAXATION. 
 
 Taxes are imposed in two principal ways: (1) indireethj and 
 (2) directly. Indirect taxation consists in raising a revenue by 
 requiring a payment to the government on articles produced or 
 imported, and such taxes 'are e\i\\QY p)07i duties or internal revenue 
 taxes. Direct taxation consists in requiring direct payment from 
 each person oi-iX, capitation tax, or an income tax, or di property 
 tax. 
 
 4. ADVANTAGES OF DIRECT TAXATION. 
 
 The advantages claimed for the indirect method are : (1) 
 indirect taxes are not paid in large^xxm^, but in very small '»nes ; 
 (2) they are not felt tt> be senere, because included in the price of 
 the article ; (3) they are generally laid upon articles of luxury., 
 and so are paid by those most willing to pay them. 
 
 5. DISADVANTAGES OF INDIRECT TAXATION. 
 
 The fallowing disadvaritages are claimed: (1) they impose a 
 burden which is none the less heavy because it is not known ; 
 (2) it is desirable for people to know liow much they pay for 
 government and u^hy they pay it ; (3) they do, in many ways, 
 bear as heavily upon the poor as upon the rich., while the rich 
 have more in<-erests protected ; (4) the indirect tax is made a 
 basis of profit by dealers, so that government finally gets only a 
 part of what is paid as taxes. 
 
 6. ADVANTAGES OF DIRECT TAXATION. 
 
 Any very large capitation tax is manifestly unjust. The 
 advantages of a property and income tax may be considered 
 separately. Oi ^ property ^aa?, they are : (1) the tax falls. on 
 those most able to pay ; (2) on those most protected ; (3) on those- 
 most able to direct its use ; (4) on that which may ho fairly esti- 
 mated. Of an income tax, they are : (1) the tax falls on those 
 really most prosperous ; (2) on those most indebted to govern- 
 ment. 
 
7. DISADVANTAGES OF DIRECT TAXATION. 
 
 Against the property tax it is objected (1) that it must 
 finally he paid by the poor, as tenants to landlords; (2) that it 
 is liable io false estimatiim. Against the income tax, (1) that it: 
 is inquisitorial^ prying obnoxiously into a mans private affairs ; 
 (2) it is easy to evade by false returns ; (3) equal assessment of 
 temporary ana permanent mcoxues is unfair. 
 
 XX. 
 
 NATIONAL DEBTS. 
 
 1. ORIGIN OF NATION'AL DEBTS. 
 
 In times of peace the annual taxes should meet the current 
 expenses of government. Wars, however, generally fix debts 
 upon a nation. This is sometimes skillfully avoided. Prussia 
 avoids it by increased taxation. The long wnrs of Frederick the 
 Great left no debt. An increase of one-third in the taxes during 
 our Civil War would have left the nation without indebtedness. 
 Political reasons usually prevent the payment of current expen- 
 ses ; for taxes dampen martial enthusiasm, (to) 
 
 2. THE MODERN PINANCIAI. SYSTEM. 
 
 This began with W^illiam of Orange (1689) when he became 
 King of England. He borrowed money to fight France, and 
 England hns had a national debt ever since. Pj^eviously men 
 had no confidence in government loans. William borrowed for a 
 specified time, and pledged the public funds for security The 
 Bank of England and a land-tax completed the svstem. Enghind 
 now owes a debt of over 800,000,000 pounds, which will jiK i-- 
 ably never be paid. (7i) 
 
3. IS A NATIONAL DEBT A BLESSING? 
 
 The payment of England's debt is ohjected to, and the debt 
 itself is claimed as a blessing, on the following grounds: (1) 
 capital is worth more than the three per cent, paid on the debt ; 
 (2) its wide distribution imparts stability to the government by 
 unifying interests in it ; (3) it is an impediment to expensive 
 wars. On the other hand, it may be answered: (1) Govern- 
 ment does not make three per cent, out of the loans, for these 
 have been consumed in past expenses, the interest on which must 
 be paid by taxation, and, if money is worth more than three per 
 cent., it might be used to better advantage ; (2) the holders of the 
 debt are so small a minority that they give little stability to the 
 government, while the taxes required to f)ay the interest excite 
 general diss.itisfaction ; (8) a debt is an impediment to industrial 
 and co!nmercial progress and to necessary self-defense, as well as 
 to ex[)ensive wars. (12) 
 
 I. THE EVILS OF A NATIONAL DEBT. 
 
 A national debt hasthe following attending evils : (1) it ex- 
 tends the tvar-sf/sfem ; for an indebted nation is a natural prey 
 and must ever be on the defensive ; (2) it threatens the national 
 existeih-e in times of peril, by crip])ling its resources; (3) it im- 
 poverishes the masses, on whom the burden of taxation finally 
 rests. 
 
 5. CAN A NATIONAL DEBT BE PAID? 
 
 The United States debt on Jan. 1., 1872, was $2,300,000,- 
 000, $+00,000,000 of which bore no interest. With such data, 
 an appropriation of $150,000,000 yearly for the payment of 
 principal and interest, would liquidate the debt in 33 years and 
 10 months, or in 1905. The interest actually paid was $125,- 
 000,000. $25,000,000 mo.e annually would pay the debt in the 
 time stated. This would be 62 J cents per year to each inhabi- 
 tant, reckoning the population at 40 millions. But the average 
 will ])v 50 millions, or about 1 cent per week for each inhabi- 
 tant. 
 
XXI. 
 
 POPULATION, 
 
 1. THE THKORY OF MAI/I HUJ^. 
 
 At a time when local facts 2;a.ve plausibility to his doctrines, 
 the Rev. Thomas Malthas (1798) advanced the following dismal 
 theory : The productiveness of the earth being limited, and the 
 increase of population being unlimited but having annually ,a 
 greater ratio, there will come a time when d(>stitution and famine 
 will become universal. The theory is based upon false assump- 
 tions as regards (1) Subsistence, ('2) Population, and (3) the /ie- 
 lation betiveen them. 
 
 2. SUBSISTKNCE PROGRE»5)SIVE. 
 
 That subsistence is progressive rather than stationary is evi- 
 dent irom the following facts : (1) much of the best land in the 
 world is still uncultivated ; ^2) by mmns of scientific agriculture 
 the productiveness of land may be vastly increased ; (3) product- 
 iveness has increased with population and wealth ; (4) intelligence 
 and necessity devise numerous ways of avoiding waste. (73) 
 
 3. POPUI^ATFON NOT NECESSAHII.V PROGRESSIVE. 
 
 It is a well known fact that the reproductiveness of the race 
 diminishes under conditions of civiliz ition,and also that longevity 
 is constantly declining. Moral as well as physical causes also 
 tend to diminish reproduction. (74) 
 
 4. THE REI^ATIOX BETWEEN SUB?^ISTENCE AND POPU- 
 
 I.ATION. 
 
 It being evident that subsistence is not stationary but pro- 
 gressive, and that population is not necessarily progiessive, but 
 may befome practically stationary at a certain point, the theory 
 that population will ever exceed the supf)lv of food is wholly 
 imaginary. The fact seems to be that the ratio of human in- 
 crease is becominoj less while that of commodities of all kinds is 
 growing greater. 
 
5. IMMIGRATION. 
 
 The effect of immigration depends upon (1) the supply of 
 food in proportion to the population, and (2) the resources of the 
 country. If the agricultural resources are not brought to their 
 highest point of productiveness, immigration may be desirable, 
 even when the supply of food is too small. The effect of immi- 
 gration in this country has been (1) to developed its resources', 
 (2) to increase the real wages of all classes ; (3) to elevate natives 
 to more desirable forms of effort ; (4-) to advance the country to a 
 higher national position in wealth, population and intelligence. 
 
 XXII. 
 
 SBNTf^ALIZATION AND SOMMUNISM. 
 
 1. THE THEORY OF CENTRALIZATION. 
 
 It is a favorite doctrine with some theorists that wealth 
 attracts wealth and will continue to do so in an increasing ratio, 
 until the wealth of the country, and even of the world, will be 
 centred in a few powerful fimilies, the Rothschilds and Astors of 
 the future. It is claimed that while the tendency of the rich is 
 to become richer, the fate of the poor is to remain poor, until the 
 moneyless many shall become the serfs of the affluent few. This 
 theory deserves examination. 
 
 3. THE FORCE.** OF CENTRALIZATION. 
 
 It is claimed that in the present organization of society, 
 everything fivors centralization ; as, (1) the power of capital to 
 multiply itself; (2) the perpetwition of estates by observing pri- 
 mogeniture in inheritance ; (3) the uniting of vast estates through 
 
watrimomj ; (4) the hyisJative infliwrice which money s». ej.sily 
 commands ; (5) the consequent growtli ol vast leyahzta }).<ho;^c- 
 lies. (T5) 
 
 3. THE FORCES OF DECENTRAOZATION. 
 
 On the contrary, it is urged that there are ceitain forces in 
 this country which wholly neutralize tlie forces of centralization. 
 These decentralizing forces are : (1) the mqjrodyctiviness of w- 
 vesfmmts too great for individual management; )t>) vast estates 
 in this country are often dissipated in a few generations ; (8) an 
 aristocracv of'monev does not seek intermarriage from the same 
 motive as'an aristocracy of blood ; (4) in a country where the 
 majority rule, legislative corruption, when once suspected, must 
 be neutralized by the patriotism and interest of an indignant 
 people ; (5) great monopolies which become odious will them- 
 selves be suppressed by popular legislation. 
 
 4. THEORY OF COMMUNISM. 
 
 The doctrine of communism, born in the brain ol the op 
 pressed toilers of monarchical Europe, and nourished to manly 
 vio-or in France and Germany, has landed on the shores ot 
 America, and, to many, is a welcome guest. The soul of this theory 
 is the war-cry of Proudhon, that "property is a crime." From this 
 starting point, it proceeds to deny all individual rights of property, 
 and to delegate to the community the distribution of all wealth. 
 It claims that centralization tends to mass property m undeserv- 
 ing hands, and that justice demands an occasional redistribution, 
 so that each may have a share. This phase of the doctrine corre- 
 sponds to the agrarian demands of the plebeians m ancient 
 Rome. (76) 
 
 5. THE PROSPECTS OF COMMMUNISM IN AMERICA. 
 
 Notwithstanding the threats of agitators, the probability ot 
 a communistic revolution in this country is opposed by the fol- 
 lowing facts : (1) a large proportion of the population, and by 
 far the more influential, ^xq property holders, either actual or 
 prospective; ('2) communism is contrary to the spirit of the most 
 potent educative agencies,— th^ schools and the press ; (d) com- 
 munism is (Contrary to the moral conviction of thousands who are 
 not property holders. 
 
XXIII. 
 
 GONSUMPTION. 
 
 1. DEFINITION OF CONSUMPnoX. 
 
 Consumption, in its econornic sense, is the destruction of val- 
 ue. It is not necessarily the destruction of commodities or sub- 
 stances or of their qualities. It is not necessarily such a destruc- 
 tion of value that a new value may not ai-ise from it. It is, how- 
 ever, a destruction of an existing form of value for a variety of 
 ends which will be noticed farther on The end of all produc- 
 tion is some use to which the thing produced may be put, and 
 when it is used it is said to be consumed. It may reappear in 
 other forms, but in losing its present form there is destruction of 
 value. 
 
 2. VARIETIES OF CONSUMPTION. 
 
 Consumption, or destruction of value, is an unceasing pro- 
 cess and is in part the result of natural forces and their laws. If 
 men were to fold their hands and remain idle, certain values 
 would be destroyed. There is, then, what may be called Innol- 
 untary Consutnption. But men are constantly using commodi- 
 ties for various pur])oses of their own, according to their own wills. 
 This is Voluntary Consumption. 
 
 3. INVOLUNTARY CONSUMPTION. 
 
 There are several kinds of involuntary consumption. They 
 are as follows :(1) Natural wear is constantly destroying values by 
 changing the substances to which value is attached. Nothing is 
 exempt from the gnawing of the tooth of time. Rust, al)rasion 
 and decomposition are steadily destroying every material thing. 
 (2) Accidental destruction must be taken into the account. Fire 
 and water, two helpful servants, sometimes turn on their master 
 and sweep in desolation over his possessions. Other forces of 
 nature sometimes become uncontrollable and millions of dollars 
 worth of property are consumed in a few hours. (3) Notional 
 
df'ten'(fr(fti<fu,iis Rosclier calls it, is the destruction of value that 
 results from the notions nien have with regard to ceitain things. 
 Yesterday's newspaper is valueless to-day, except as waste paper. 
 Last year's fashions having passed away, the articles that were 
 held at lii^h prices last year may be had for almost nothing this 
 year. All these destructions of value are involuntary. (77) 
 
 I. VOLUNTARY CONSUMPTION. 
 
 Most changes of value result from the voluntary uses to 
 which valuable things are.put. For the sake of clearness it is 
 best to distinguish between those which relate to the indivitlual 
 and those which relate to the community as a v/hole. 
 
 (1) Personal COx\sumption. This may be for either of 
 two distinct i urposes. (1) for reproduction or (2) for gratijicatior). 
 The manufacturer of shoes, for example, consumes leather, cut- 
 ting it up so as to destroy its value as leather, in order to pro- 
 duce shoes. In the end, however, c(.nsumprion is for gratifica- 
 tion. Shoes would not be made if there were not people to wear 
 them. Thus the final consumption is for personal gratification. 
 This may be utilitarian, as where the articles consumed are in- 
 tended simply to increase the efficiency of the consumer, or it 
 may be luxurious, as where the articles consumed are intended to 
 give pleasure simply, without regard to any ulterior end. Food 
 and clothing are intended to secure the efficiency of the indi- 
 vidual. Delicacies and ornaments are intended simply to give 
 pleasure. 
 
 (2) Public CoxsUxMPTiON. This f)rm of consumption has 
 relation to the community as a whole. It is required (1) for 
 governme^d, including the salaries paid to men who are appoint- 
 ed to administer the affiiirs of state ; (2) public im'prove7nents^ 
 such as the making of roads, the bridging of streams, the dredg- 
 ing of rivers and harbors, the erection of public buildings and 
 works, all of which must be managed by the Government rather 
 than by individuals ; (3) for the advancement of science, which of- 
 ten requires the fitting out of costl}^ expeditions which would be 
 beyond the scope of private means ; (4) for the diffusion of 
 knowledge, because it is to the advantage of the state as a whole 
 'that intelligence should be as nearly universal as possible among 
 
 the people ; (5) for the care of the distressed, such as the insane, 
 
the incurable, the idiotic, the poor and the orphaned ; (6) for 
 national defence, in order to preserve liberty and a free g^|^'ern- 
 ment and the national rights, when exposed to peril, (is) 
 
 5. THE ECONOMIC LAWS OF CONSUMPTION. 
 
 There are certain ethical laws that ought to be observed in 
 consumption, but the application of them does not fall strictly 
 within our present sphere. The economic laws that ought to 
 regulate consuniption are as follows : (1) all forms of inrolun- 
 tary consumption should, as far as possible, be foreseen and 
 avoided ; (2) only such quantities of material as the case demands 
 should be used ; (3) no better quality of material than is required 
 for the desired result should be used; (4) all residual values 
 should be carefully conserved. 
 
 XXIV. 
 
 SSHOOLS OF BSONOMISS. 
 
 The following outline shows the course of thought on E- 
 conomics from its beginning as a distinct branch of inquiry. 
 
 1. THE MERCANTILE SCHOOL. 
 
 In the 16th century the commercial success of Venice and 
 Genoa led rival nations to study the causes of their prosperity. 
 A strong national feeling prevailed in the diiferent states of 
 Europe. The aggrandizement of one's own country was the 
 passion of the age. The possess! .m of money was deemed the 
 highest proof of success. A school of writers sprang up who gave 
 rules for ac(|uiring wealth by foreign trade that would keep money 
 at lioine. These are called the Mercantile School. 
 
2. THE SCHOOL OF ECONOMISTES. 
 
 The so-called Economistes began with Quesnay, a French- 
 man of the time of Louis XV. The Economistes were extreme- 
 ly theoretical. They regarded the powers of the soil as the only 
 source of wealth. The farmer is the only producer. All in- 
 dustries, except the agricultural, are unwortny of a nation's at- 
 tention. Turgot, the French financier, and Dr. Benjamin Frank- 
 lin were disciples of Quesnay.* 
 
 3. THE INDUSTRIAL SCHOOL. 
 
 Adam Smith, an Edinburgh Professor, wrote his "Inquiry 
 into the Nature and Causes of the Wealth of Nations" in 1776. 
 He recoornizes ao;riculture. manufacturino; and commerce as true 
 sources of wealth. He advances the doctrine called "the let- 
 alone principle," which denies that governments ought to meddle 
 with production in any way. His motto is "Free Competition." 
 Complaint is made by objectors to this view^ that Smith regards 
 the world as one great family, and not as a group of nations with 
 diverging interests. He is the founder of the Industrial School. 
 
 4. THE COSMOPOLITICAL SCHOOL. 
 
 Smith justly claims the title, "the father of modern Politi- 
 cal Economy." His principles with modifications have been 
 generally adopted, and those holding them are now called the 
 Cosrnopolitical School. Jean Baptiste Say, a French writer 
 (1828) put Smith's doctrines into more systematic shape, and 
 gave them great beauty of form. He called the science "Politi- 
 cal Economy," its most widely accepted name. Most of the 
 French and English writers belong to this school. 
 
 Rev. T. R. Malthus (1798) aroused great interest by his 
 "Essay on Population." David Ricardo (1817) quickened 
 thought on the subject by his theory of Rent. About '833 be- 
 gan a series of critical writings by Senior, Tooke, Mill and 
 others. Thornton has attacked the wage-fund theory. In 
 America, Cooper, Wayland, Bryant, Perry, Amasa and Francis 
 Walker have written ably in favor of this school. 
 
 5. THE NATIONALIST SCHOOL. 
 
 The theory of protection has been espoused by ceitain 
 writers in America who may be grouped together as the National- 
 
ist School. Alexander Hamilton, Matthew Carey, William Elder, 
 E. Peshine Smith, Professor Wilson of Cornell University, 
 and Professor Thompson, of the University of Pennsylvania, are 
 the principal defenders of protection. Henry Carey has written 
 ably on the whole subject of Political Economy, and many of his 
 views have 1 een adopted by numerous writers in Germany. In 
 IS'25 Frederick List, while visiting this country, admired the 
 American policy advocated by Protectionists, and returning 
 taught it in Germany. (T9) 
 
 The tendency of the best economists is critical rather than 
 dogmatic, and all look anxiously to the facts of the present and 
 the future to give an experimental test of their favorite theories. 
 
 WO!^KS OF f^EFERBNSE ON ESONOMISS. 
 
 Without pretending to enumerate all the important works, 
 the following short list is offered as containing the books most 
 available to the student : 
 
 BIBLIOGRAPHY. 
 
 •'Guide to the Study of Political Economy," by Luigi Cossa. 
 [A valuable introductory outline with the names of all the im- 
 portant works in English and the Continental Languages.] 
 
 HISTORY. 
 
 "History of Political Economy in Europe," by J. A. Blan- 
 qui, translated from the French by E. J. Leonard. [A full and 
 valuable account of the progress of thought on economics from 
 the days of Aristotle. It is weakest in its attitude toward living 
 questions.] 
 
 "Principles of Political Economy," by William Roscher, 
 translated from the German by J. J. Lalor. [This is not pro- 
 fessedly a history, but is a discussion according tc> the historic 
 method and abounds with valuable historic data in the notes. A 
 work ot the greatest value.] 
 
STANDARD WOKKS. 
 
 ''An Inquiry into the Nature and Causes ot the Wealth of 
 Nations " by A^hun Smith. [The first great work on the subject. 
 It is indispensable to a full comprehension of the ^cience J 
 
 -Principles of Political Economy/' by J. S. Mill. [Accor.l- 
 incT to Cossa, this is the -best English treatise on economics. 
 Itis certainly a work of great ablity, and cannot be neglected by 
 the thorough student.] 
 
 "Some Leading Principles of Political Economy Newly Ex- 
 ponded," by J. E. Cairnes. [This is in part a criticism of Mill s 
 work, .but is constructive with reference to several important 
 doctrines.] 
 
 -The Theory of Political Economy," by W. S. Jeyons. 
 [This is entirely theoretical, advocating the application of the 
 calculus to economic questions. It is useless for any but a<lvanc- 
 ed students. 
 
 MANUAI.S. 
 
 "Manual of Political Economy," by Henry Fawcett, M. P. 
 [This is an admirable compendium of Mill's work, with valuable 
 enrichment from the author's study of contemporary questions.] 
 
 '^The Science of Wealth," by Amasa Walker. [This is a 
 verv clear exposition of the subject, by an American free-trader. 
 The -Student's Edition" is an admirable introduction to econo- 
 mics.] 
 
 "An Introduction to Political Economy," by A. L. Perry. 
 [This is a wonderfully fascinating presentation of the elements of 
 economics by an American professor. The definitions are ottt>n 
 original and valuable and many of them have been adopted and 
 used in these Notes.] 
 
 "The Elements of Political Economy," by Francis Way- 
 land, recast br A. L. Chapin. [President Waylaml's bo(.k has 
 been widely used as a text-book and has received a thorough reM- 
 sion and rejuvenation that render is very fresh and helpful ] 
 
 'Social Science and National Econohy,'" by R. E. Thomp- 
 son. [No other book so well represents the cause of American 
 Protection. There is much infoimation crowded into the vol- 
 ume.] 
 
MONOGRAPHS. 
 
 "Essay on the Principles of Population," by T. R. Malthus. 
 [This celebrated essay has given rise to much discussion. It sug- 
 gested to Darwin his theory of "the struggle for existence." It 
 has a double interest to every thinker.] 
 
 "On Labour," by W. T. Thornton. [Cosso says : "It is an 
 excellent work. It made a great impression on Mill, and induc- 
 ed him to abandon his theory of the wages fund."] 
 
 " Money and the Mechanism of Exchange." by VV. S. Je- 
 vons. [A clear and interesting monograj^h on the subject.] 
 
 " Money," by Francis A, Walker. [A valuable work by a 
 former Yale professor and Superintendent of the United Stales 
 Census.] 
 
 " The Wages Question,' by Francis A. Walker. [rVn ex- 
 cellent discussion of the problems of labor and its remuneration, 
 full of interesting facts.] 
 
 " Communism in America," by H. A. James. [A Prize 
 Essay, presenting in brief outline the theories and history of 
 Communism.] 
 
 " A History of American Currency," by William G. Sum- 
 ner. [A helpful compilation of facts relating to the history of 
 the Currency in this country.] 
 
 "Progress and Poverty,' by Henry George. [A vigorous- 
 ly written work, finding a remedy for industrial depressions in 
 the common ownership of land. It is full of information, but one- 
 sided in its conceptions and erroneous in its conclusions.] 
 
 READING REFERENCES. 
 
 In order to aid the student in comprehending the subject, 
 the following passages have been referred to in the text of these 
 Notes. The numbers used here correspond to the bold-faced 
 numbers at the ends of paragraphs in the text. Where initials 
 are used, P. will stand for Perry, T. tor Thompson, W. for 
 Walker and Way. for Wayland, the references being by pages to 
 the manuals already named. 
 
 ip. l:l IT.— 2 P. 18, 19.— 3 P. 35, 49.— 4 P. 22, 30.-5 
 W. 27, 31.— C^w-ev's "Social Science," 82,88 ; and P. 53,56. 
 
-7 p. 60, 68.— 8 P. 70, 71.— »W. 38, 4 3.— loW. 40.— ii P. 
 75^8-2.—'''^ P. 73,75.-1'^ Way. 3-%34.— » iP. 83 ; also DeAmiois 
 -Paris,' 96, 103.-15 P. 96.— 1« P. 90,94.-1^ Way. 40,43.— 
 ,8 Way. 43,47.-19 P. 94,95.— «<> P. 97, l06.— 'ii Way. 48,51. 
 —^z W. 46,51.-23 W. 5-i.— 24 W. 55,64.-25 P. 113, 111. 
 —26 P. '\Q. I'il.— 27 P. 122, 123.-28 W. m ; and 33.— 2J> 
 W. 34, 36.— 30 T. 138.-31 w. 289.-32 W. 279—33 W. 280, 
 282.-3* W. 286 ; and T. 154, 155.— ^^ North American Re- 
 view, No. 120, 84,88 ; and Mill's -Trinciples," 431, 432.— 34J 
 Walker's 'Wages," 144, 151.— ^^ Walkers '"Wages," 392,396. 
 —38 Walker's ^^Wages," 406, 408.— 39 Walker's "Wages," 
 396, 406.-4O W. 302, 309.— 4i W. 311,314.-42 W. 314, 
 317._43 W. 321, 322—44 W. 325, 326.-45 W. 3-.^7, 332 — 
 46 Way, 270.-47 W. 88.-48 W. 9l.— 49 W. 94, 98.— 50 
 T. 236, 258.— 51 T. 268,278.-52 P. 162, 180. -53 W. 109, 
 120.— 54 W. 136, 138.-55 P. 186, 189; and 201, 204.— 56 
 W. 144.— 51 W. 145, 146.-58 P. 214, 218; and 23 .234. 
 —59 P. 243, 245.-60 P. 274,?75.— 61 P. 276, 301.— «i2 P. 
 ^9^,301.— 63 P. 297, 301.- 64 W. 152, 161.— 65 T. l69, 
 186.-66 Way. 337.-67 Way. 339.-6.4 T. 186, 188.-6.) 
 Smith's "Wealth of Nations," vol. iii, 255, 259.— to T. 20:% 
 204.— '^i— W. 378,383.— 72 T. 204.— -^3 T. 68.-7* T. 61. 
 —75 W. 387.-76 T. 131 ; and James" ••Communism in Amer- 
 ica," 21,36.— 77 Roscher's ^'Principles," vol. ii, 183 196.— 78 
 T. 385,415.-79 T. 16, 31. 
 
LE0TURES ON POLITISS. 
 
 I. 
 
 THE NATUf^E OF GOYEf^NMENT, 
 
 1. MAX A SOCIAT. BEING. 
 
 Human beings are born into certain necessary relations with 
 one another. To realize his highest development, man must 
 stcUid in some relation of dependence. Isolation is helplessness, 
 swiftly ending in destruction. Hence, man is, by natui-e, a social 
 being. He may disregard his social relations, but such disregard 
 is a violation of natural laws, and results in barbarism. He may 
 regard these relations, define them, classify them, and live in 
 accordance with them, and such a course results in civilization. 
 By disregarding these relations, he descends from the plane of 
 manhood, and places himself on the level of the brute. It is only 
 by regarding social relations, therefore, that man can remain 
 human, (i) 
 
 2. THE ORIGIN OF CIVIL SOCIETY. 
 
 Civil Society is the natural condition into which man is 
 born. It is, therefore, noi a voluntary human invention, but a 
 divinely appointed institution, like the family. It did not orig- 
 inate in a social compact, or agreement to abandr>n the solitary 
 state, as Rousseau taught. Legislators and writers sometimes 
 
speak of a "social compact, " as though men at some time had 
 met in convention, and agreed to a limitation of their natnr.il 
 rights. No such compact is known to have been made. It is 
 unhistoric, unnatural, and wholly imaginary. (2) 
 
 3. ETHICAL FOUNDATION OF THE STATE. 
 
 Every human being is a person and has certain rights. As 
 duties are the correlates of rights, I'iglits cannot exist without duties. 
 Hence men are formed into society with certain rights and duties; 
 /. ('.. they are born into a moral order, ah'eady establislied by 
 the Creator, not based upon their consent, or ex[)ressed in a vol- 
 untary social compact. They have the power to know their rights 
 and duties, to feel their obligation to live according to law, and 
 to choose right courses of conduct. Their rights and duties ex- 
 ist independently of their clioice. Hence the state, oi- civil so- 
 ciety, into which men are born, is not their creation, but is based 
 on the physical, intellectual and moral constitution of their own 
 nature. 
 
 4. THE CONSTITUENTS OF THE STATE. 
 
 All the people of the land constitute the state. All conse, 
 without their consent, into the social orden by virtue of their 
 birthright in the fatherland. The new-born infant is divinely 
 placed in the state. He is, therefore, born to certain rights and 
 to certain duties. He may n^t surrender his rights and become 
 a barbarian, or disregard his duties and become an outlaw. Either 
 course is an indignity to his nature as a man. He is morally 
 established in his rights and obligated to his duties by being born 
 into the state. (3) 
 
 5. THE ORIGIN OF GOVERNMENT. 
 
 A state is not a government. A state ordains a government 
 as an agent for the accomplishment of its ends. It determines 
 what kind of government shall exist, creates it. limits its powers, 
 fixes the period of its duration, changes its form, or abolishes it 
 altogether. Sovereignty resides in the state, /. <?., in the people, 
 not in the government. The government is but the expression 
 of the peojile's will, and is right or wrong as the people follow 
 the ethical laws of their nature. (4) 
 
^ 6. THE END OF GOVERNMENT. 
 
 The end of irovernment isjus^iife, or equity, among the per- 
 sons constituting the state It does not aim at the development 
 of the individual, but at the protection of his rights. It does 
 not create these rights, nor does the state create them. They 
 belong to men by nature. Government can only define and 
 secure to men the rights Avhich they natumlly possess. (5) 
 
 T. THE FUNCTIONS OF GOVERNMENT. 
 
 A state needs laws that shall secure justice to ;ill. These 
 laws must be interpreted and applied, when rights are infringed. 
 The laws must also be executed and enforced. Hence govern- 
 ment has three functions: (1) the Legislative; (2) the Jadieial; 
 (3) the Executive. (Q) 
 
 II. 
 
 FORMS OF GOVERNMENT, 
 
 1. THE GENERIC FORMS OF GOVERNMENT. 
 
 The legislative, judicial, and executive functions may be 
 vested in an individual, in a select few, or in the entire people. 
 The generic forms of government are, therefore: (1) the 3Ion- 
 archy^ or government by one; (2) the Aristocraci/, or govern- 
 ment by a few ; (3) the Republic^ or government by the people. 
 These generic forms admit of many modifications, which must be 
 considered more in detail. 
 
 2. THE MONARCHY. 
 
 A monarcli is a ruler having sole authority. If he rules 
 over an Empire, he is called an Emperor, a Czar, or a Sultan ; if 
 over a Kingdom, the ruler is called a King or a Queen ; if over 
 
a Principality, a Tiince ; if over a Grand Ducli}^, a Grand Duke;: 
 if over a Duchy, a Duke; Monarchies are, as to form, either ab- 
 solute, or limited. In an absolute monarchy, the sovereign's will 
 is law. In a limited monarchy, the province of the monarch is 
 defined in a constitution, either written or traditional. Mon- 
 archies are, as to the order of succession, hereditary or elective 
 In a hereditary monarchy, the sovereign inherits his power from 
 the previous sovereign by descent. In an elective monarchy the 
 sovereign is chosen either by the people or the nobles of the land. 
 Ill some countries, as in France, a salic law excludes females from 
 the throne. It is a maxim of the monarchical theory that ''the 
 King never dies." When the monarcii is removed by death, the 
 heir to the throne instantly succeeds, and the act of coronation is 
 but a ceremony. 
 
 3. THE ARISTOCRACY. 
 
 This form of government is based on the idea that the be^st 
 ought to govern. When the principle of distinction is ivilitarij 
 fotvcr, it is called a stratocracy ; when it is wealth, it is called 
 a plutocracy. An aristocracy tends toward a monirchy, 
 by centralizing power into a few hands, which makes it 
 easier to be grasped by one. Hence aristrocratic governments 
 have usually ended in monarchies. 
 
 4. THE REPUBI.IC. 
 
 When the functions of government are performed by the 
 people directly, the government is called a democracy. Such a 
 government is practicable only on a small scale and in a small 
 community. No great nation can maintain this form of government. 
 Popular government is, therefore, usually representative, and its 
 favorite and most perfect form is the representative republic. 
 Such is the United States of Amei'ica. The English government 
 is a blending of the three generic forms. It has a sovereign in the 
 person of the King or Queen, an aristocracy in the House ot 
 Lords, and a popular representation in the House of Commons. 
 
 5. I.IBERTY REAIvIZED ONI.Y I^ GOV ERNME:NT. 
 
 Sir James Mackintosh justly defines liberty as " security 
 against wrong ;" that is, men enjoy liberty only when their rights 
 are secured. Liberty, therefore, involves the necessity of law or 
 
the definition of rights — its application, and its enforcement. 
 Hence liberty cannot exist except where the legislative, judicial, 
 and executive functions are rightly exercised License, oi- the 
 removal of all restraints, is the opp site of liberty. Liberty is 
 not freedom to do as we please, but to do as we ought. Govern- 
 ment undertakes to define what we ought to do ; and, for the pro- 
 tection of otheis, to compel us to do it. Hence liberty is lealized 
 only under a just government. (7j 
 
 r>. THE MOST PERFECT FORM OF (;OV ERXMKNT. 
 
 The end of government is to realize liberty by the establish- 
 ment of justice. That is the most perfect form of government 
 Vvhich most completly accomplishes this end. Any one of the 
 forms described may tempoiarily secure liberty to all, but they do 
 not all secure it with equal permanence. A monarch may be- 
 come arbitrary, and enact unjust laws. An aristocracy is likely 
 to legislate against the lower classes. A representative republic, 
 dreiving its power from the people, and holding it subject to their 
 approval, is most likely to govern justly; for its preservation of 
 liberty is the only warrant for its continuance. 
 
 in. 
 
 THEORIES OF REPRESENTATION. 
 
 Admitting that a representative republic is the best form of 
 government, the questions at once arise: (1) On what prmeiple 
 should representatiorifhe based? (2) Who should have the right 
 of suffrage ? and (3) Hoiv should representatives stand related 
 to their constituency ? 
 
 1. THE PRINCIPLES OF REPRESENT ATIOX. 
 
 The following principles have been named by different theor- 
 
ists as the true grounds of representation : (1) Government is 
 said to be formed in the representation of interests. This doc- 
 trine was maintained by John C. Calhoun. To this it may be 
 objected that private rights do not give origin to public rights, 
 but both co-exist independently (2) Government ^ is 
 
 said to be constituted in the representation of families. The 
 family is not a unit in the state, and hence the re].reseiita- 
 tion of families wouW not be a representation of all the political 
 units. (3) Government is said to be constituted in the rejneseii- 
 tation of numbers. There is no reason why mere numbers sl-ould 
 be taken as the ground of representation, rather than size, weight, 
 or any other physical quality. (4) .The representation, it is 
 maintained, should be of certain (ajxuiiies (>t pc^diii^ aiiad mg 
 to men. This is the doctrine of J. S. Mill, who holds that ihe 
 number of a man's votes should be proportional to the dig- 
 nity of his occupation. This theory ignores the fads thai no 
 fair standard of apportionment could be found, and thai piblic 
 rights belong to a man as a person, not as a laborer, an aiiiznn 
 or^a member of a prfession. (5) Government is constituted, in t lie 
 normal political order, in the representation of persovs. The 
 end of government is freedom. A person is a free, self-dotoi min- 
 ing being, capable of choices, and exercising choice. Hence 
 only persons can be represented in a free state. One is a person 
 only in so far as he exercises free choice. Hence only those are 
 persons, in the political sense, who are cap.-ible of free choice be- 
 tween political alternatives. (8) 
 
 2. THE RIGHT OF SUFFRAGE. 
 
 A suffrage, or vote, is the affirmation of a choice. Hence, 
 only persons,'in the political sense, as beings capable of a jk)- 
 litical choice, have the power to vote. This liuiits the right of 
 suffrage to persons who are competent to choose between i:)r<>pos- 
 ed me'n and measures, and who can,. and do, exercise absolute 
 freedom of choice concerning them. It excludes (1) infants, as 
 incapable of political choice ; (2) imbeciles, as incapable of any 
 intelligent choice ; (3) lunatics, as incapable of any choice ; (4) 
 the bribed, as having sold their freedom of choice : (5) .^larrx. as 
 being without the power of choosing ; (6) manj/ women, as be- 
 ing under authority, and so liable to coercion. The age at which 
 
one arrives at such maturity as to be capable of a political choice 
 must vary widely with education and surroundings. This age 
 is fixed hy law, and in the United States and Engljind has been 
 placed ar, twenty-one years. At this age a peison is said to 
 p.iss out of liis "ujinoriiy" and attain his 'majority.'" 
 
 .J. THE RELATION OF THE REPRESENTATIVE TO HIS 
 CONSTITUENCY. 
 
 Two theories have been advanced a^ to the relation of a rep- 
 resentative to his constituency : (1) that a lepresentative should 
 n'-pres'nt^ or merely voice forth, the opinions of his constituency, 
 without independent exercise of his own judgment and choice ; 
 (2) that a representative is chosen on account of his abilitif to 
 Jul/e and choose for the people; and he should, therefore, exer- 
 cise freely his judgment and choice in their behalf The first 
 theory is impossible in practice, for the judgment and choice of 
 the whole people are often not ascertainable. The second theory 
 is based on the fact that representation is of persons bi/ persons. 
 But the representative would cease to be a person, and become a 
 mere impersonal instrument, if he did not exercise his power of 
 free choice. His personality is the basis of his responsibility, 
 and he cannot surrender his power of choice without ceasing to 
 h: responsible. (9) 
 
 IV. 
 
 THE INSTf^UMBNT OF GOYE!^NMENT. 
 
 1. THE NATURE OF LAW. 
 
 Law is the instrument of government. In its most general 
 and comprehensive sense, says Blackstone, it signifies "a rule of 
 
action." In its more limited sense, it denotes the rules of hu- 
 man action or conduct; that is, "the precepts by which man, a 
 creature endowed with both reason and free-will, is commanded to 
 make use of those faculties in the geiientl regulation of his be- 
 haviour." These rules must be prescribed by some comj etent 
 authority, and this leads us to the distinctions made farther on. 
 (lO) 
 
 2. THE DIFFERENT KINDS OF IjAW. 
 
 We enumerate below the most important kinds of law : 
 
 (1) Divine Law is the will of the Creator. It is made 
 known to us in our moral constitution and by revelation. It is 
 also called the moral law. It is binding on all men because they 
 are the creatures of Him who has established the law. No law 
 can have authority that is in plain contradiction to the divine 
 law. 
 
 (2) Constitutional Law is the organic law of a nation, in 
 which the form of government is determined. It expresses the 
 will of the whole people and may be altered by them. 
 
 (3) Municipal Law is a rule of civil conduct prescribed by 
 the supreme power in a state. Under this head we must note the 
 following distinctions. Statuie law is the written will ol the 
 legislative department of government, enacted according to tbe 
 provisions of the Constitution. Common law m "that branch of 
 the law of England which does not owe its origin to parbmentary 
 enactment — being a collection of customs, rules and maxims, 
 which have acquired the force of law by immemorial usage i-ecog- 
 nized and declared by judicial decisions." It has been adopted 
 in the LTnited States as law where statures do not differ from it. 
 A vast body of law derived from Roman usage anil wi'iting is in 
 force in countries that have received their institutions trom Rome, 
 and is known as the Civil Latu. It comprises tlie Code, twelve 
 books of imperial statutes dating from Hadrian to Justinian ; tlie 
 InMutes, or elements of Roman law, in four books, being a di- 
 gest of the ancient law for students at law; the Pandects, an 
 abridgement, in fifty books, of the decisions of praetois and ancient 
 writers ; and the Noueh of Justinian, a collection of imperial 
 statutes passed after the date of the Code, and intended to im- 
 prove and correct preceding publications. The Roman law has 
 
not been adopted at large in the United States, but is in force 
 in Louisiana. 
 
 (+) Canon L\w is the law of the Roman Catholic Church, 
 aa I a portion of it has authority in the ecclesiastical courts of 
 England. There are r;o ecclesiastical courts in the United States. 
 
 (5) Military Law is a system of rules for the govern- 
 ment of an army. It admits of great freedom of action on the 
 part of the commander, as is necessary in order to secure the re- 
 sults of an arbitrary dictatorship. When a commander declares a 
 country under Martial law, it is equivalent to setting aside the 
 municipal law for the time. 
 
 (6) International Law is the name applied to the system 
 of rules assented to by the majority of civilized nations. It has 
 no authoritative source, and is dependent upon common usage. 
 
 3. MAXIMS OF INTERNATIONAL! LAW. 
 
 The following maxims are generally accepted among civi- 
 lized nations as principles to l^e observed in their international 
 relations : 
 
 (1) Foreigners are subject to the laws of the country in 
 which they are resident. They may also seek protection under 
 the laws in the local courts. Sovereigns of other countries and 
 ambassadors, with their attendants, are exempt from the juris- 
 diction of the country where they reside, (li) 
 
 (2) The open sea is the common highway of nations, and 
 so also are rivers separating two countries. (12) 
 
 (3) Treaties are not binding unless ratified by both gov- 
 ernments involved, and one is liberated when the other violates 
 the treaty. (i3) 
 
 (4) A FORMAL DECLARATION OF WAR is not necessary 
 before hostilities are begun, if the intention to declare war has 
 been announced within the country declaring it. (14) 
 
 (5) A STATE OF WAR ends all trading with the enemy, 
 unless a special license has been granted for trading If they 
 are not armed and make no resistance, private persons are not to 
 be molested or private property confiscated. Citizens ot the hos- 
 tile country cannot be detained in another country, unless guilty 
 of some offense. (i5) 
 
(6) An enemy's property at sea may be captured. 
 Pi'operty sailing under the enemy's flag is liable to conliscation, 
 though it belong to a neutral. (16) 
 
 (7) Neutrals may trade uninterruptedly, except in poi ts 
 declared blockaded, but may not carry articles contraband of 
 war. To be effective, a blockade must be actual, not merely a 
 '"paper" declaration. Neutrals must have due notice of the 
 hli)cka'le, or entrance to a port is innocent. In time of war, 
 neutrals in ay be searched, (ii) 
 
 (8) A TRUCE is a temporary suspension of hostilities. 
 Diirin*: a tiuce it is held to be illegal to do any thing to change 
 thf situatioij of the forces. (18) 
 
 V. 
 
 eOLONIAL GOYBRNMENT, 
 
 1. POriTICAr STATUS OF THE COLONISTS. 
 
 The American colonists came to America as the citizens of 
 European monarchies and subjects of their monarchs. For a 
 time they retained their allegiance to the governments of the 
 mother-countries. In the course of time this allegiance was 
 abandoned in a manner to be farther described. (19) 
 
 2. THE COLONY OF VIRGINIA. 
 
 Until 1619, the people of Virginia were ruled by a Gov- 
 ernor and Council, appointed by the English Crown. They were 
 entitled to all the privileges of British subjects, and claimed the 
 right to be represented in the British Parliament. In 161 9, the 
 Governor, Sir George Yeardly, called a General Assembly of the 
 representatives of the people, as a local legislature. This was the 
 first representative legislature in America. 
 
3. THE PI.YMOUTH COLONY. 
 
 The Piltri-im Fathers, on board the Mavflower, in KJ'jIO, drew 
 up a conipacr, ackrinwledging the sover(Mgiity of King Janie8 of 
 Great Britain, and covenanting to "enact, constitute and frauje 
 such just and equal laws, ordinances, acts, constitutions and of- 
 ficers, from time to time, as shall be thought ujost meet and con- 
 venient for the general good of the coU)ny." Under this com- 
 pact, a Governor and an As^istatit were elected annually 'I'he 
 number of assistants was afterward increased lo seven. Tiie su- 
 preme legislative power resided in the male freemen who were 
 church members, and they all voted in general assembly, in 
 1629, representation was adopted. In 1(-)S4. the English Gov- 
 ernment established over them a government not of tlieir clniice. 
 In 169 1, the Colony of Plymouth was united with the Colony of 
 Massachusetts by a charter from the Ciown. 
 
 4. THE CLASSED OF COI.ONIAI. GOVERNMENTS. 
 
 Without entering into details respecting the colonial govern- 
 ments, we may,. with Blackstone, divide them into the following 
 three classes: 
 
 (1) The Provincial Governments. In these the King 
 appointed the Governor and a Council to assist him as an u{)per 
 house of a legislature, while the governor called an Assembly as 
 a lower house, elected by the freeliolders. The Governor had the 
 power of veto and of dissolution. All laws were subjected to the 
 ratification of the Crown. The Governor and Council had pow- 
 er to establish couits, raise troops for defense, and exercise mar- 
 tial law in case of rebellion or invasion. 
 
 (2) The Proprietary Governments differed from the 
 Provincial in th^t the proprietary, or owner, exercised over them 
 the powers of the King, while he was also subject to the King. 
 
 (3) The Charter Governments possessed charters, 
 granted by the King, in which their forms and powers were de- 
 fined. In the earliest charters provision was made for a legisla- 
 tive body chosen by the people ; but the colonists insisted on 
 representation in the government, and finally secured it in eA^er3'- 
 colony. The powers of the local legislatures were, however, very 
 limited, (^o) 
 
5. INTEH-RKI. ATIONS OF THR COI.C)NIE«. 
 
 The colonies were originally separate and independent of 
 one another, having only a common allegiance to the English 
 Crown. As suhjects of the King, all colonists could live in any 
 colony and enjoy its rights. The question of taxation united the 
 colonists in the formation of one government. All agreed that 
 they should not be taxed without their consent. They ( enied 
 theVight of Parliament to tax them without representation. Mass- 
 achusetts finally declared that Parliament had no right to legis- 
 late for the olonies. Parliament claimed this right and imposed 
 heavy taxes. Among the most odious was the tax on tea. After 
 much remonstrance, Massachusetts recommended the assembling 
 of a Continental Congresgi. (21) 
 
 6. THE CONTINENTAL COBJGR ESS. 
 
 A Congress, composed of delegates chosen by the lower 
 houses of the legislatures, in some cases, and in others by conven- 
 tions of the people, assembled in Philadelphia, on Sept. 4, 1774. 
 Each colony had one vote on the questions that arose. This 
 Congress adopted a Declaration of Rights, setting forth the griev- 
 ances of the colonies to the people ot England, the other colonies 
 and the King. A second Congress met in May,* 1775, the dele- 
 gates being chosen as before. This Congress recommended rais- 
 ing an armv, appointed Washington commander-in-chief, author- 
 ized the issue of two million dollars in bills of credit, and, on July 
 4, 1776, declared the colonies independent of Great Britain. 
 From this time forth Congn ss exercised, by choice of the people, 
 the powers of a national government. {22) 
 
 VI. 
 
 THBSONFEDEFATION. 
 
 1. THE FORMATION OF THE CONFEDERATION. 
 
 It was at once apparent that unity of action demanded an 
 
authoritative association of the coh)nies arid a written instrnirjcnt 
 definino; tiie pDwers of Cono;ress. The time from June 11. 1776 
 to March, 1781, was employed in drafting, revisiiig and adopting 
 certain Articles of Confederation to serve this purpose. (i>:5j 
 
 2, THE CONFEDERATION NOT A NATION. 
 
 The Continental Congress had assumed and exercised nation- 
 al powers by the consent of the colonies, hut the Articles of Confed- 
 eration prescribed a league of friendship and co-operation, not an 
 organic nation. The evidence of this is as follows: (1) The 
 ''sovereignty of the states'" is expressly retained by Article II. 
 (y) The Confederation is styled "a firnj league of friendship" in 
 Art. TIL (8) The delegates were to be appointed by the legis- 
 latures of the states (Art. V.). (4) The voting was to be l)y 
 states (Art. V.). (5) The executive committee, appointed to act 
 during the recess of Congress, was a '■Committee of States" (Art. 
 
 X.). - 
 
 3. THE ORGANIZATION OF THE CONGRESS. 
 
 The Congress consisted of one House, composed of delegates 
 from all the states, each state having not less than two, or more 
 than seven, delegates, elected for one year, and not eligible for 
 more than three years in a period of six years. The delegates 
 could be withdrawn at the pleasure of the states, and wer'e pr-ohih- 
 ited from holding any office under the United States during their 
 term of office. 
 
 4. POWERS OF THE CONGRES^. 
 
 The Congi'ess had the following powers : (I) to determine 
 war or peace ; (2) to send and receive ambassadors ; (3) to enter 
 treaties and alliances, under certain limitations ; (4) to decide 
 the legaliti/ of captures ; (5) to gr-ant letters of marque and re- 
 prisal ; (6) to appoint courts for the trial of pirates ; (7) to regu- 
 late the alloy avd value of coin ; (8) to fix the standard oi weights 
 ajtd measures ; (9) to manage the Indians, who wer-e not members ' 
 of the states ; (10) to establish post-offices and charge posta;.e ; 
 (11) to appoint most officers of the army and navy ; (12) to ap- 
 point their presiding officer; (13) to ascertain the sums (f money 
 needed to defray the public expenses ; (14) to horrotv numey and 
 emit bills of credit ; (15) to build and equip a navy; (16) to agree 
 
upon the nianher of land forces and fix the quota for each state, 
 with power to enforce the requisition. (24) 
 
 r.. KESTRICTIONS OF THE CONGRESS. 
 
 Most of the powers previously named couhl not he exercised 
 without the consent of nine states of the thirteen. Measures of 
 great moment often failed of adoption on account of this restric- 
 tion. Congress had no power, to execute laws. All was left to 
 the states, and the states often failed. Congress could build and 
 equip a navy and raise an army, hut could not lay a dollar of tax 
 or collect a dollar of revenue, with which to meet the expenses. 
 Congress had no power to regulate commerce, and American ship- 
 ping was swept from the seas In truth. Congress, under the 
 Confederation, was little more than an advisory committee. (25) 
 
 6. FAILURE OP THE CONFEDERATION. 
 
 Before the close of the War of the Revolution, the Confed- 
 eration was seen to be a failure. Washington wrote, '''J'he 
 Confederation seems tc me to be little more than the shadow- 
 without the substance, and Congress a nugatory body,"' When 
 the pressing necessity for umion was removed by the termination 
 of the War, the defects of the Conlederation became more and 
 more apparent. The treaties of Congress were broken by tlie 
 states. The assessments of money were not paid. Public credit 
 was wholly lost. The resolutions of Congiess were treated with 
 contempt. Clear-minded statesmen saw the necessity of a sti-ong 
 central government, and out of this necessity the Constitution 
 had its origin. (26) 
 
 VII. 
 
 FORMATION OF THE (CONSTITUTION, 
 
 1. THE VIRGINIA RESOI.UTION. 
 
 James Madison, of Virginia, felt the defects of the Confed- 
 
eriition so keenly that, in 1784:, besought a seat in the Virginia 
 Legislature for the express purpose of influencing that hodv t«> 
 .'.iteinpt the formation of a national goveir>ment. At first lie 
 fitujivl a strong aversion to the surrender of power by the state to 
 a government of the United States. After two yearsofeffort.be 
 succeeded in carrying a resolution appointing himself and four 
 others to meet similar committees from other suites, in order to 
 consider the question of a uniform systenj of conniierce. 
 
 2. THE ANNAPOLIS COM.MITIEE. 
 
 In accordance with this resolution, delegates from five 
 states met at Annapolis, in Sept. 1786. Very little interest 
 was manifested and the only result was a report, drawn up by 
 Alexander Hamilton, recommending to Congress the a{)point- 
 ment of commissioners by the states, "to devise provisions to 
 rinder the constitution of the Federal Government adecjuate to 
 the exigencies of the Union. 
 
 3. THE FEDERAl^ CONVENTION. 
 
 In response, Congress recommended a convention to meet 
 in Philadelphia, on May 14r, 1787. A.11 the states except Rhode 
 Island appointed delegates. The delegates assembled slowly, 
 and business was not begun for nearly two weeks. At last fifty- 
 five were gathered, and among them the most patriotic, wise and 
 talented men of the time. This assembly is known as the 
 Federal Convention. Washington was chosen lo preside. Ab- 
 solute secrecy was agreed upon, but Madison kept a record, 
 which, after his death, was published by order of Congress and 
 furnishes a full history of the proceedings. (37) 
 
 4. A NATIONAL GOVERNMENT RECOMMENDED. 
 
 When the Convention assembled, it was supposed that its 
 object was to amend the Articles of Confederation. It soon ap- 
 peared that nothing would meet the case but a national, as op- 
 posed to a merely federal, government. Had the call of the 
 Convention been to propose a national government, the Conven- 
 tion would never have met ; but, on the 13th of June,the following 
 resolution was adopted : 
 
"Resolved, That a national government ought to be es- 
 tablished, \Nith a supreme legislature, executive and judiciary." 
 This resolution should be noted as exhibiting the intention ot the 
 Convention to recommend the formation of a mitvm, not a 
 league. (28) 
 
 5. THE VIRGINIA, OR NATIONAI., PLAN. 
 
 Edmund Randolph, of Virginia, laid before the Convention 
 a plan, embodied iu fifteen resolutioms, proposing a national gov- 
 ernment, with legislative, judicial and executive functions. Ihe leg- 
 islature was to consist of two branches, one elected by the people, 
 the second to be elected by the first branch out of a number ot 
 candidates to be nt)minated by the state legislatures The power 
 of the legislature was to be truly national. The right ot Mittrage 
 was to belong to all free inhabitants of the United States. Ihis 
 was called the "Virginia," or "national," plan. 
 
 6. THE NEW JERSEY, OR CONFEDERATE, PI. AN. 
 
 Patterson, of New Jersey, proposed that the Articles of 
 Confederation be revised; the powers of Congress enlarge.l in re- 
 spect to revenue and the regulation of commerce ; an executive 
 appointed; a judiciary established ; and that treaties ratihe I by 
 Congress be the law if the land. This is known as the -New 
 Jersey" plan, or the "confederate" plan. Other plans were ot- 
 fered, notably one by Alexander Hamilton, but they need not be 
 described here. (29) 
 
 T. THE DISCUSSION OF THE PI.ANS. 
 
 The two plans that occupied the minds -of the delegates were 
 the "national" and the "confederate." Franklin proposed that 
 the sessions be opened with prayer; and thus, if the Constitution 
 finally adopted does not contain the name of God, it was avowed- 
 ly formed in His name. Both plans were long debated. i lie 
 "national" plan was remodelled by a committee and sui)st:,ntially 
 adopted. Thus the Constitution, for whose formation no conven- 
 tion could have been assembled, was gradually evolved l-y a 
 patient and judicious compromise with popular feeling. (3t>) 
 
VIII. 
 
 THE ADOPTION OF THE 60NSTITUTI0N, 
 
 i. THE CONSrirUTION REFKRRKD TO THE PEOPLE. 
 
 The Constitution prepared by tue Federal Convention was 
 biid before the Congress of the Confederation, by Congress sent 
 to the states, and by the states referred to conventions of the 
 people. In this act there is a distinct recognition that sovereign- 
 ty is inherent in the peof)le, not in the states. The instrument 
 was drawn in the name of the people, not in that of the states, 
 beginning, ''We, the people." Its adoption was dependent on 
 the ratification of the proposed plan by the people. Its final 
 adoption was, therefore, the formation of a national government 
 by the people of the United States. (31) 
 
 2. OPPOSITION TO THE CONSTITITTION. 
 
 The national character of the Constitution is farther evident 
 from the arguments by which it was opposed. In some quarters 
 eminent men, like Patrick Henry and Samuel Adams, opposed 
 its adoption on the ground that it centralized power, and with- 
 drew from the states the independence and sovereignty which 
 they had under the Confederation. These men were favorable 
 to a league between the states, rather than one nation. Some 
 saw in the President of the United States a masked king, who 
 some day would throw off the disguise jind proclaiiii himself sov- 
 ereign. The friends of the national plan embodied in the Con- 
 stitution were called Federalists. The opposers were known as 
 Anti-federalists. 
 
 3. EXPOSITION OF THE CONSTITUTION. 
 
 In order to explain to the people the nature and purpose of 
 the Constitution, Hamilton, Madison and Jay wrote extended 
 essays expository of the Constituti(m. These papers were after- 
 ward collected into a volume known as "The Federalist," one of 
 
the most statesmanlike treatises on the science of government in 
 existence. In this valuable document we liave the views of some 
 of the framers of the Constitution as to its nature and mean- 
 ing. 
 
 4. RECEPTION OF THE CONSTITtfTION BY THE STATES. 
 
 Pursuant to *the recommendation of Congress, the state legis- 
 latures called conventions of the people at different times. Dela- 
 ware adopted the Constitution on December 7, 1787. In Penn- 
 sylvania, the Constitution was explained and defended by one of 
 the framers, James Wilson, and his speeches constitute one of the 
 best comuientaries on the Constitution thMt have been i)repared. 
 Pennsylvania adopted the Constitution on Dec. 1 2, 1787. In 
 many of the states the opposition was intense. In Virginia, 
 Henry and Monroe opposed, and Madison, Marshall and Ran- 
 dolph defended, the Constitution. It was finally ratified by Vii- 
 ginia. North Carolina rejected the Constitution and Rhode Island 
 refused to call a convention. (32) 
 
 5. FINAL ADOPTION OF' THE CONSTITUTION. 
 
 The Constitution provided that when it had been ratifie 1 by 
 nine of the thirteen states, it should be binding on those states. 
 New Hampshire was the ninth state to ratify, on June 21, 1788. 
 The report of the Committee on the Formation of Government 
 was adopted in Sept. 1788, and elections of officers under the 
 Constitution were held in Jan. 1789. Tlie opposers of the Con- 
 stitution magnanimously resolved to stand by it, as the will of the 
 majority. North Carolina soon after ratified it. and Rhode Is- 
 land, last and least, ratified it in May, 1790, after it had had a 
 year's trial. 
 
 6. THE FIRST TEN AMENDMENTS. 
 
 Several of the popular conventions had demanded certain 
 amendments as the condition of ratification. This demand was 
 waived ; but, in order to meet the objections of Anti-fi deralists, 
 the first ten Amendments to the Constitution were adopted by 
 the first Congress, and approved according to law. The Constitu- 
 tion thus framed, with the addition soon after of the Xlth and 
 Xllth Amendments, remained unchanged, as the supreme law of 
 the land, for three quarters of a century ; and has stood the tests 
 
of vast teriitorial expansion, foreign and civil wars, an unpreced- 
 ented increase of population and the commingling of ilie most 
 heterogeneous i-aces. 
 
 IX. 
 
 THE NATUf^E OF THE SONSTITUTION, 
 
 1. PECUtlARITIES OF THE CONS TITU TION. 
 
 The Constitution of the United States has several peculiar- 
 ities that distinguish it from the constituiions of most nations: 
 
 (1) It is wholly written, not traditional, like that of England; 
 
 (2) it is inromph'te in not exhaustively determining all govern- 
 mental action ; (3) it expressly defines and liinifx the se{)arate 
 departments of the government; (4) it provi<les for a Icgul chatn/e 
 of the Government. (33) 
 
 2. THEORIES OF ITS ESSENTIAL NATURE. 
 
 The following theories of the essential nature of the Consti- 
 tution have been advocated : 
 
 (1) The National Theory. This regards the Constitution 
 as the organic and fundamental law of a nation, in the sense of 
 "an independent, separate, political society, with its own organi- 
 zation and go.vernment, posse5?sing in itself inherent and absolute 
 powers of legislation." It denies that the Constitution is merely 
 a league, or compact between sovereign states. The national 
 theory was held by Hamilton, Jay, Marshall, Websterand Story, 
 and has been sustained bj the decisions of the Supreme Court 
 and the issue of the Southern attempt at secession. 
 
 (2) The League Theory. This theory denies that the 
 United States is now, or ever was, a nation, and maintains that 
 
it is simply a league, or compact, between sovereign states. It 
 has been defended by Jefierson, Calhoun and A. H. Stejihens, 
 and was the theoretical basis of the secession of the Sourhern 
 states. 
 
 (8) The Katioxal-Union Theory. This iheory con- 
 cedes that the states were originally indepen<lent, sovereign 
 commonwealths, which have irrevocably surrendered their origi- 
 nal sovereignty by formin^^ a national union. The states, there- 
 fore, and not the people, constitute the nation, and letain such 
 sovereignty as is not fornjally surrendered in the Constitution. 
 This theory whs advocated by Madison and Jackson, underlies 
 the decisions of Chief-Justice Taney and has been held by many 
 politicians. (34) 
 
 3. THE MEANING OF "SOVEREIGNTY." 
 
 Political sovereignty is the distinctive attribute of the nation 
 as an independent political society. Sovereignty is .supreme 
 poiver^ or power that is inherent and absolute, not derived or 
 limited. Natural sovereignty is of God, who ..lone is naiunilly 
 absolute. Political sovereignty is the will of the people, not the 
 will of a state. The states have rights, and it is proper to speak 
 of ''states rights" ; but states, as parts of a nation, cannot be 
 said to be supreme or to possess sovereignty,, if there is a power 
 above them like the national power. (35) 
 
 4. THE UNITED STATES A NATION. 
 
 That the United States is a nation, in the sense already de- 
 fined, and that the separate states are not sovei'eign, is evident 
 from the following considerations : 
 
 (1) The purpose of the framers of the constitu- 
 tion WAS TO FORM A NATION, NOT A LEAGUE. Randolph 
 said in the Federal Convention : "The true question is, whether 
 we shall adhere to the federal plan or introduce* the national 
 plan."' The Convention voted to recommend the national plan. 
 
 (2) The adoption of the constitution was debated 
 ON THAT ISSUE. It was opposed by Patrick Henry as constitut- 
 ing a nation, instead ot a league. It was defended by Randolph 
 and others, before the people, as a national plan. 
 
 (3) The Constitution is framed in the name of the 
 
PEOPLE OF THE UxiTED States, Tiot in the name of the states. 
 Compare the Preamhle with that of the Constitution of the Con- 
 federate States, afterward drawn up by advocates of the league 
 theory. 
 
 (4) The Constitution DECLARE itself the '-supkeme 
 LAW OF the land" (Art. VI. Sect. 2), and makes the decisions 
 of tlie United States courts binding up(>n all the judges of the 
 states, "the constitution or laws of any state to the contrary not- 
 withstanding." Here is a distinct assertion of the 'supremacy of 
 the United States Government, and a consequent denial of the 
 sovereignty of the states. 
 
 (5) The nationality of the Constitution is evident 
 FROM the LE«iiSLATiVE POWERS OF CoxGRESS, which are su- 
 perior to those of the states, — such as engaging in wars, making 
 treaties, coining money, and collecting taxes within the states. 
 
 (6) The provisions for its alteration (Art. V.) show 
 that the Constitution is a creation of the people and not a compact 
 of the states. Amendments may be ratified by the legislatures of 
 the states or by conventions of the people, as Congress may think 
 expedient. The sovereignty of the people, not of the states, is 
 here plainly taught ; for Congress may appeal directly to them 
 and ignore the state governments. ■ 
 
 (7) The decisions of the Supreme Court declare the 
 United States to be a nation and that the states are not sovereign 
 states. This is conclusive and has the force of law. (36) 
 
 X. 
 
 THE GOVERNMENT OF PENNSYLVANIA. 
 
 1. THE CONSTITUTION OF PENNSYLVANIA. 
 
 Since the proprietary government of William Penn, Penn- 
 
yylvania has been governed under four constitutions, tliosc of 
 1776, 171)0, 1838 and 1873. The last is at present the (.i^anie 
 law of tlie Commonwealth, was ratified by the f)eople by a nia- 
 joritv of almost three to one, and became operative on Jan. 1, 
 187i (37) 
 
 2. THE DECLARATION OF RIGHTS. 
 
 The first article of the Constitution declares the followinir 
 rights ''excepted out of the general powers of g'^vernment. and 
 they shall forever remain inviolate'" : (1) All men are born 
 equally free <ind independent -dudi have certain inherent I'iglits ; 
 (2) all power is hiJiere7it in the people and all free governments 
 are founded on their authority : (3) all men have natural rights 
 oi religious belief and eonscienee wliich no human authority can 
 control ; (4) no person believing in God and a future Vfe 9]\\A\ 
 be disqualified from holding any office: ^5) eUcliivs shall be hie 
 and equal ; (6) trial by jurif shall be inviolate ; (7) the freedom 
 of the prexs shall be unrestrained ; (8) the people shall be secuie 
 from iinreaHonable searches; (9) in criminal prosecutioi s all 
 persons shall be heard l>y eoimsel and ne( d not give evidence 
 against themselves; (10) no citizen shall be proceeded against by 
 i'formation ; (11) all courts shall be open and all shall have 
 remedy by law ; (12) no power of suspending latvs ^haW lie in tiie 
 legislature ; (13) excessive bail shall not be required: (14) all but 
 those accused of capital offenses shall be entitled to release on 
 bail ; (15) no commission of jail-delivery shall be issued; {iCi^ 
 there shaW he no i77ip7'is()nment for debt ; (17) no ex post fact" 
 law or law impairing contracts shall be passed ; ( ' 8) no person 
 shall be attainted of treason or felony by the legislature ; (19) no 
 attainder shall work corruption of blood or forfeitjin- (f es^afts; 
 (20) citizens have a right to assemble together in a j)eacf'able 
 manner and to ask redress of grievances; (21) citizens have a 
 right to bear armx in defence of themselves and the State ; (22) 
 no standing army can be kept in time of peace without the con 
 sent of the legislature ; (23) no soldier shall be (juartered in any 
 house without the consent of tlie owner, exceyjt according to law 
 in time of war ; (24) the legislature shall grant no title <f nobility; 
 {'i5) emigratio7i from the State shall not be prohibited. 
 
3. THE L.EGISI.ATURC. 
 
 This consists of a senate and a house of representatives. 
 Senators are elected for four years and representativt^s fur two. 
 The two houses (general assembly) meet every other year on the 
 first Tuesday in January and at other times when convened hy 
 the governor. Senators must be at least twenty-five years old 
 and representatives twenty-one. No law can be passed except 
 by bill, which must be referred to a committee and j)ass a third 
 reading. Local or special laws restricting the riglits of commu- 
 nities cannot be passed. 
 
 4. THK EXECUTIVE. 
 
 The executive department consists of a governor, lieutenant- 
 governor, secietary of the commonwealth, attorney-general, audi- 
 tor-general. State? treasurer, secretary of internal aftairs and a 
 superintendent of public instruction. The governor holds office 
 for four years and is not elegible for re-election tor the next 
 term. The governor must be at least thirty years old. lie fills 
 vacancies by appointment under certain restrictions, signs bills 
 and has the power of veto, but bills may be passed over his veto 
 by a majority of two thirds of both houses. 
 
 r>. THE JUDICIARY. 
 
 There are the following courts : (1) a Supreme Court ; (2) 
 courts of Common Pleas ; (-3) courts of Oyer and Terminer ; (4) 
 courts of Quarter Sessions ; (o) Orphans" Courts ; and (6) Mag- 
 istrates' Courts. The questions of Jurisdiction are too technical 
 to be introduced here. The Supreme Judges are elected for 
 twenty-one years, or during good behavior. All other law judges 
 are elected for ten years, or during good behavior. 
 
 6. COUXTY OFFICERS. 
 
 County officers consist of sheriffs, coroners, prothonotaries, 
 registers of wills, recorders of deeds, commissioners, treasurers, 
 surveyors, auditors or controllers, clerks of the courts, district 
 attorneys, and such others as may be established by law. They 
 are elected at general elections and hold office for three years. 
 
QUESTIONS ON THE SONSTITUTION. 
 
 1. 
 
 2. 
 8. 
 4. 
 5. 
 6. 
 7. 
 8. 
 itancy ? 
 9. 
 10. 
 11. 
 
 What are the three departments of government V 
 
 Why shouhl these departments be distinct and separate ? 
 
 Of what does Congress consist ? 
 
 Why are two houses better than one? 
 
 Why shouhl the two houses be differently constituted ? 
 
 Wliat is the term of service in Congress V 
 
 How ohl must a representative be ? 
 
 What is re(piired with respect to citizenshi) and 
 
 hab- 
 
 uals 
 
 What is the apportionment of representatives ? 
 How is the number of representatives limited ? 
 
 representatives vote by States, or as individ- 
 
 Doth 
 
 ion wi 
 
 th increase 
 
 12. What has been the ratio of representati( 
 of population ? 
 
 acancies filled in the House of Representa- 
 
 13. 
 
 tives? 
 
 14. 
 
 15. 
 
 16. 
 
 IT. 
 
 18. 
 number ? 
 ^ 19. 
 
 20. 
 
 21. 
 
 22. 
 is tried ? 
 
 23. 
 tions ? 
 
 24. 
 
 25. 
 
 26. 
 Senate ? 
 
 27. 
 
 28. 
 
 How 
 
 are v 
 
 How is the Speaker chosen ? 
 
 Where is the power of impeachment vested ? 
 
 How is the Senate composed ? 
 
 \¥iiy are Senators chosen by State Legislatures ? 
 
 Why do the large and the small States have the same 
 
 What is the term of service in the Senate ? 
 
 How long must the Senator have been a citizen '^ 
 
 Who presides over the Senate ? 
 
 Who presides over the Senate when the Vice-President 
 
 What of the time, place and manner of holdin, 
 
 lec- 
 
 must Congress meet ? 
 
 How ofte'^ .---^ r> „ u V 
 
 Who judge of the election and qualification ot members . 
 How maiiy constitute a (piorum in the House, in the 
 
 How may a member be expelled ? 
 When must the yeas and nays be called ? 
 
29. When may the proceedings of Congress be kept secret ? 
 
 30. What is the law respecting adjournment of Congress ? 
 
 31. How are meaibers of Congress paid for their services ? 
 
 32. What special privileges do they enjoy ? 
 
 33. Where must all bills for rev^^enue originate ? 
 3+. Can the Senate amend a revenue bill ? 
 
 35. State the mode of passing a law. 
 
 36. What must be done with every order and resolution 
 of Congress ? 
 
 37. For what purpose may Congress lay and collect taxes ? 
 
 38. What department of the Government can borrow 
 money ? 
 
 39. What is the power of Congress as to commerce ? 
 
 40. What are naturalization laws ? 
 
 41. How are post-offices and post-roads established ? 
 
 42. What are copyright and patent laws ? 
 
 43. What power has C >ngress concerning piracy and the 
 law of nations ? 
 
 44. What are letters of marque and reprisal ? 
 
 45. By whom may armies and navies be raised ? 
 
 46. What power can call out the militia ? 
 
 47. What clause gives Congress power to charter national 
 banks ? 
 
 48. What is the Writ of Habeas Corpus^ and when may 
 it be suspended ? 
 
 49. What is a Bill of Attainder, and why may Congress 
 not pass one ? 
 
 50. What is an ex post facto \?i\\ 1 
 
 51 . How can money be drawn from the Treasury ? 
 
 52. Can Congress grant. a title of nobility ? 
 
 53. May the States borrow money and issue bonds ? 
 
 54. What is a bill imparing the obligation of contracts ? 
 
 55. For what purpose may a State impose duties ? 
 
 56. May leagues be formed between the States ? 
 
 57. Where is the executive power vested ? 
 
 58. What is the President's term of office ? 
 
 59. By whom and how are the President and Vice-Presi- 
 dent chosen ? 
 
60. ^Nhy is the day of election uniform throughout the 
 country ? 
 
 61. Who \^ eligible to the office of President ? 
 
 62. How old must otje be to be President ? 
 
 63. What is done when the office of President is made 
 vacant ? 
 
 64. What is done when there is no Vice President ? 
 
 65. What IS the salary of the President ? 
 
 66. Why is the President the commander-in-chief of the 
 array ? , 
 
 67. Where is the pardoning power vested ? 
 
 68. IIow is the pardoning- po»ver limited? 
 
 69. W^heie is the treaty-making power vested ? 
 
 70. Who appoints ambassadors of the United States ? 
 
 71. Is the President bound to ratify a treaty if the Senate 
 approve it ? 
 
 72. Who appropriates the money to carrv a treaty into 
 effect ? 
 
 73. May the representatives withhold the money if they 
 choose ? 
 
 74. Why is the consent of the Senate necessary to the ap- 
 pointmtnts of the President? 
 
 75. When may the Presidentconvene and adjourn Congress ? 
 
 76. How may the President be removed from office ? 
 
 77. Where is the judiciary power of the United States 
 vested ? 
 
 78. Name the three national courts. 
 
 79. Of what does the Supreme Court consist ? 
 
 80. When and where are its sessions held ? 
 
 81. How many judicial circuits are there ? 
 
 82. Who are the circuit judges ? 
 
 83. What are the district courts ? 
 
 84. W^hat are the officers of the national courts ? 
 
 85. How arc the judges appointed ? 
 
 86. What is their tenure of office ? 
 
 87. How is the compensation of the judges fixed ? 
 
 88. To what does the judicial power extend ? 
 
 '89. Can the United States bring a suit against an indi- 
 vidual. 
 
90. Can an individual bring a suit against the United 
 Stytes ? 
 
 91. Can citizens of one State brinc!; a suit aii;.iiust another 
 State ? 
 
 92. What is the jurisdiction of the Supreme Court? 
 
 93. What is the principal business of the Supreme Court ? 
 91. May appeals be taken from the State Courts to the 
 
 Su{>reme Court ? 
 
 95. VVliat is ''treason" and what is necessary to conviction? 
 
 96. What rights have citizens of one State in notlier ? 
 
 97. How aie States admitted into the Union ? 
 
 98. What are the territorial governments and how are iliey 
 rehired to the national ? 
 
 9*,). How may the Constitution be ;nnended ? 
 100. How many amendments have been made to the Con- 
 stitution, and what are they about? 
 
 WORKS OF f^EFERENeE ON POLITIGS. 
 
 The following are some of the most important works 
 which one professing a systematic acquaintance with the sub- 
 ject needs to read and consult : 
 
 THE THEORY OF GOVERNMENT. 
 
 ''Politics for Young Americans," by Charles Nordhoff. [This 
 is an admirable little work in plain style, prepared for boys and 
 yoimg men, by a distinguished journalist.] 
 
 "The Nation," by E. Mulford. [President Angell, of 
 Michigan University, says of it : "It is the most valuable con- 
 tribution to political philosophy which has been written in the 
 English language in the present generation."' It was a favorite 
 work with the late President Garfield.] 
 
 ''The Science of Politics," by Sheldon Amos. [This is a 
 suggestive work by an English professor of law on the theory of 
 the State.] 
 
 "Political Science, or the State," by Theodore D. Woolsey. 
 [This is an exhaustive woik in two hrge volumes, by a late Presi- 
 
dent of Yale College. It is sound in principles and covers the 
 Avliole ground, but is a little dry except for specialists.] 
 
 •'American Citizen's Manual.' by VV. C. Ford. [This is 
 intended to give an insight into the actual structure and \\(»rking 
 of the Government of the United States. It is m iavo ^mall 
 volumes and is full ot fresh information, having hem recently 
 prepared. (188i^)] 
 
 ''On Civd Liberty and Self-government," by Francis Lei- 
 ber. [This is a work of great value, though its doctiines liave 
 been to some extent absorbed by more r>'cent works. It is valu- 
 able for its extensive historical illus rations and important docu- 
 ments in the Appendix; sucli as the lext of Magna Charia. the 
 French Constitutions, etc.] 
 
 "Considerations on Representative Government." also ''On 
 Liberty," by J. S. Mill. [These are famons works on the prin- 
 ciples of government by a great economist and logician.] 
 
 "Politics" by Aristotle, translated by E. Walford. [This 
 is very interesting as a compendium of the best views of the an- 
 cients on the subject of government. Plato's "Republic" and 
 "Laws," translated by Jowett, will profit the thorough student.] 
 
 THE EliEMENT^s OF I^AW. 
 
 "Blackstone's Commentaries." [This famous work remains 
 the best introduction to the subject. A single reading, at least, 
 is almost indispensable to a general education. A condensed 
 edition in one small volume, with obsolete matter eliminated, has 
 been prepared by Marshall D. Ewell, Professor of Law, and is 
 commended to the general reader. Published at $2.50, by Soule 
 and Bugbee, Boston,] 
 
 "Elements of Jurisprudence," by T. E. Holland. [This is 
 a very c'ear and brief introduction to the first principles of law, 
 b}" an English lawyer and Oxford Professor of Law. 
 
 "The Science of Law," by Sheldon Amos. [This is a work 
 designed to present the theory of law in a scientific form to gen- 
 eral readers. Like the author's "Science of Politics," it belongs 
 to the "International Scientific Series."] 
 
 "Ancient Law," by Sir H. Maine. [This has an historic 
 as well as a legal interest, as it traces the evolution of custom.] 
 
"International Law," by T. D. Woolsey. [Probably tbe 
 best American compendium on the sui ject. There is a, good 
 bibliography in the Appendix.] 
 
 "International Law," by W. E Hall. [This is a leading 
 English authority. It is a larger wor^^ than VVoolsey's. 
 
 EXPO.^iriONS OF THE CONSTITUTION. 
 
 "The Federalist," [Thi.^s is par fxc'clletf.ec the commentary 
 on the Constitution.] 
 
 "Commentaries on the Constitution of the United States," 
 by Joseph Story, revised by T. M. Cooley. [This is a gi-eat and 
 monumental work. The author is a great authority on Consti- 
 tutional questions. He has prej)arcd a smaller work, called "A 
 Familiar Exposition," in which the principles of the larger are 
 set forth in brief.] 
 
 "x\n Introduction to the Constitutional Law of the United 
 States," by J. N. Pomeroy. [President Anderson, of Rochester 
 University, says of Professor Pomeroy s book that, in the im- 
 portant qualities of such a work, "it is unquestionably superior 
 10 any work on the subject hitherto written."] 
 
 "The Science of Government," by Joseph Alden, is an ex- 
 cellent brief manual of exposition. 
 
 "Constitutional View of the Late War between the States," 
 by A. H. Stephens [This is the ablest defense of the Consti- 
 tutional interpretation that inspired the Rebellion of the Southern 
 States. It contains also the Constitution of the Confederacy and 
 other valuable documents.] 
 
 CONSTITUnONAT. HISTORY. 
 
 "History of American Politics," by Alexander Johnson. 
 [This is a useful little digest of political history. It contains the 
 Constitution, the Articles of Confederation and valuable tables of 
 statistics and returns.] 
 
 "Constitutional History and Development of the United 
 States," by Simon Sterne. [This is a fair short outline of con- 
 stitutional history.] 
 
 "Outlines of the Constitutional History of the United States," 
 by Luther H. Porter. [This is a more serviceable book than the 
 preceding. It is well analysed and has useful tables and sum- 
 
inaries. A good f'eariiio is the insertion in sinall type of the im- 
 portant original documents. It has an exposition (tf each clause 
 of the Constitution. It is probahly the best single hook for the 
 student to buy.] 
 
 "Constitutional History of the United States," by H. Von 
 Hoist. [A great work, i-eaching only to 1846 at the close of the 
 second octavo volume. It has the thoroughness and the dryness 
 of the German method of treatment. Useful foi reference.] 
 
 "Historical Outline of the English Constituti(tn for Begin- 
 ners," by D. W. Rannie. [This is a good brief outline of the 
 growth of English institutions, which we for the most part in- 
 herit. It can be read in a day and is useful.] 
 
 "Constitutional History of England," by W. Stubbs. [This 
 is a work of great value and accuracy, but too ponderous for the 
 student. It is admirable for reference and for advanced read- 
 ing.] 
 
 READING REI-'ERENCES. 
 
 In the following references. A. stands for Alden's "Science 
 of Government," B. for Blackstone s Commentaries," L. for 
 Lieher's Civil Liberty." M. for Mulford's "The Nation," N. foi- 
 Nordhoffs 'Politics for Young Amei'icatis," P. for Pomeroy\s 
 "Introduction to Constitutional Law." S. for Story's '•'Familiar 
 Exposition of the Constitution," and W. for Woolsey's "Inter- 
 national Law." 
 
 iN. 11, 14.— 2 M. 3. 4 ; and 43.-3 M. 61, 63.-4 P. 59, 
 62.— 5 M. 106, 107.— 6 M. 172.— 7 M. 108, ill; and 116, 
 117 ; and 119, 120 ; and 140, 143; and L. 37, 42 ; and 45, 56. 
 — sM. 212, 225.— 9'Miirs "Representative Government," 233, 
 248. See also Chap, vii, on the representation of minorities. — 
 10 B. 1, 4.-11 W. 131, I 32.-12 W. 73, 86.— 13 W. 166, 167; 
 and 178, 180.— n W. 196, 201.— 15 W. 201. 207.-16 W. 
 207, 216.— 17 W. 293, 294 ; and 304, 306.— is W. 265, 268. 
 —19 S! 11, 16.— 30 S. 17, 20.— 31 S. 52, 24.-32 S. 26, 
 27.— 23 S. 27, 29.-34: Articles of Confederation.— 25 S. 29, 
 32.-26 S. 32, 33.— 37 A. 56.-28 P. 54, 55.-29 A. 63, 64 ; 
 
;in(l Alexander Haniilton's Works, vol. ii, 39o. — 30 A. 6S, 
 69.— 31 P- 59. 62.-32 A. 71, 75.-33 P- H- 13.— 34 P. ^^0, 
 26.— 35R '28, 30.-3ii P. 72. 74; and r.20, 521.— 31 The 
 Constitution of Pennsylvania is published hv Kay k Brother, 17 
 and 19 South 6th St. Philadelphia, at 25 cents"; nnd the Con- 
 stitutions of all the States and of the United States, are pub- 
 lished in one volume bv A. S. Barnes and Co., Ill William St., 
 New York, atp.SO. 
 
 THli: END. 
 
■■"^i. s^ 
 
 ^^.- .x^^^-% 
 
 
 
 
 
 ^A .\ 
 
 } . 
 
 
 1 '^ .-^ "^-c^A^^ "'^ 
 
 ■"if- ^^ 
 
 
 ^.^' 
 
 .-0' ^ 
 
 ^^0^ 
 
 
 o , X -^^ ,'\ 
 
 V-- 
 
 0- V ' 
 
 %:° 
 
 
 
 C^' ^ ^ » 
 
 -^--0^ 
 
 -b V 
 
 
 
 
 
 ^^<^- 
 ■x^'"^^. 
 
 
 
 A 
 
 ^/\r\.^ 
 
 V ^' 
 
 ^^-. .A' 
 
 
 ; ■%^' :0^ 
 
 "^a V 
 
 
 
 ~0%^. 
 
 
 ."t 
 
 .0- 
 
 \ 
 
 
 
 
 ^.^' '^,> ° ^(/,' '>;^ \>>^ * a"^' ^. 
 
 A^ 
 
 o '^ c. 
 
 ^>; 
 
 i- ^ 
 
 .V 
 
 .^^ 
 
 
 
 ■i / •'• 
 
 W^ 
 
^ V 
 
 o > 
 
 
 
 :^\"':-.:'/^. 
 
 ■i__> 
 
 
 ■K :. 
 
 i ^ f. 
 
 
 
 .0 .f 
 
 
 
 
 
 
 .^^^% 
 
 
 V^^;^^ .^:^''% ^^^ 
 
 
 ^ 
 
 
 o 
 
 
 
 
 
 
 ■-^ 
 
 . . s ^ ,0 
 
 
 '" 8 1 A * \V 
 
 .^ '^V 
 
 
 '■^-^ 
 
 
 
 
LIBRARY OF CONGRESS 
 
 
 013 478 759 4 
 
 # 
 
 ■ 
 
 M 
 
 1 
 
 v,VJ., 
 
 r^ty-^X^ 
 
 
 ^ 
 
 
 ^f:^-^^ 
 
 '^f'.i^^ 
 
 K'>' 
 
 rfe^ 
 
 ^v'»i^^:;?'N4/ 
 
 
 
 1 VsiV ; ■ V -M. ■