Notes On Political Economy

Pülitical econoniy is theecience of National Wealth. Wealth uiay be defined to be any object, baving the power of gratifying human desire, which can be appropriuted. - He who possesses maoy of these objects we cali rich : he who has few of t hem, is termed poor. He who bas much money is aleo called rich; because money can be exchanged QT VEarJaU phsica' fiectff 9f deeire.- - - ■ - - =: The valué of ony thing is wealth. Bat the volue of nny arricie depends on its utility ond that whicb has no utility is of no vaheas for instance", the dust of the streets.- Whence the production of utililyis the production of wealtb. A particular substance may have the power of gratifyin tme or several deires, and may thus hnve one or several values. Anthracite coal has but one value, that of generating heat: wood lias several, as it is usedforfuel, for building, and other purposes. Some articles of value are exchangeable as gold, eilver. wood, ron, fcc. while others equally important, as the air. sunlight, and usually wdter, cannot be exchanged. Wealth, within the limits of earh nation, is susceptible or ctmiion xnd Ae stpictioii, of increase or diminutiou, without any exlernnl connection with other nations. That it is not derived from abroad, as some writersmerJy supposed, is plain from consideringfora moment the simple inquiry, where does that from abroad come from? That wealth can be increased may be dern onstrated by comparing the amount of values possessed now with those enjoyed by our ancestors, and by the ancients. The mennesl mechanic in a European lown enjoys many comforts unknown to savwges, and some of which were not possessed by the richest of the ancient sovereigns, as, for instance, chimneys and glass Windows. There are but two ways of obtaining values, or wealth- by creating them yourself, or by taking them from others: Henee the growing wealth ofan individual, when acquired by an actual creation of values, is a sou ree of general prosperty: but when o ishonestly obtained, it is a great damage to the public. The wealth of a country is increased by the emigration of foreigners inlo it, by the full amount of iheir industry, and of all the wealth they bring with them. But when a foreign travelier spends any amount in a country, say one hundred dollars, the country is not en riched to the amount of one hundred d oliars, but only to thearaount of the profil on the articles he consumes. The right of using the avails of a man 's industry just as be pienses is the most powerful of all induceraents to ihe multiplication of national wealth. It is violated, 1. By presCiiliinjí n cëitaiii ntjdjod of cuiuvating lad, as requiring that a certain portion shall be used for tillage orpasturage. 2. By interfenng with the free use of capital, as is done by laws establishing a fixed rate of interest. 3. By depriving a laborer of the free use of his fuculties and talents, as by forbidding any personto follow a meclmnical business without hav ing previously served onapprenticeship; or b compelling him to change his employment, os whcn a frpinner is obliged to become a soldie or sailor. 4. By excessive taxation: for al taxation is levied on private property: and Say, ths learned French author, goes so fa as to say ihat every si cp taken beyond the prcservation of the existence of social order i an absolute and unjustifiabJe snoliation o property. OF CAPITAL. Capital 6Ígnifies the material which industry has rendered valuable, or which it may rentier valuable, the. instrumenta necessary fo conferring value, and the means of sustenancc by which the being is supported whilst he is engaged in performing the operaron. The cap'tal of an individual will be found to consist of all these. Heuce. the forms of capital must bo variüus. The farmer has seed, manure, nnimals, &c.: the maufacturer cotion, wool, iron, wood, &c. : the merchanl sugar, tea, coffee, fctc. to the value of which he adds by transportation. Bul there must be not only materials but tools to work with; henee ploughs, saws, waggons, ships, &c, constitute a portion of capital. Food, clothing and houses, necessary for the support of workmen, constitute another part of capital. All these kinds of capital undergo changes. The seeda ond manures of the farmer are changed into vegetables, and these again into the npened grain of barvest. The wood and nails of the carpenter are changed into houseá and barna. Tiie merchant changes one commodity for unother. The instrt.ments of all kinds, employed in making these changes are worn out and rendered worthless; but f they have been profitably usod, their value is added to the objects upon which they have been employed. The food, clothing, and shelter of a human being are consumed, and their value re-appeare in that vigor of body and rniud which forrns a fresh capital, to be employed again in the work of production.In all these chunges, it will be seen there is in the very act of change a destruction of value. He who changes iron into steel, destroys the value of the iron. He who 8ows wheat, destroys its value for food. If the industry of tho laborer have been skilifully directed, the product will have acquired a value more than sulficient to replace that which was destroyed, together wiih the pay for hie labor, and the interest of hts capital. The difference bctwen tho value of the original- "" - " material, with his labor added, and ihe vuluc of hianewly created product, is his - The annual amount of tbeseprofits.is nual gross revenue, oud the annu&l omount of tliesc profits in a nation, constitutes the groes national revenue. It matters not in what form capital re-appenrs, if the nesv product be more valuablö thnn theone destroyed. Thus the smiih pay out gold for coal; he burns his coal, and noth ing is seen but ashes; hut the heat prodaced by it has given stich an increased value to his iron that he can more than roplace his gold, besides paying him for hisindustry. Henee we sec how it is that individúala and nations grow rieh . It is by uniting the industryofthis year to the capital of the 'ist, and thus aunnally a:tgmenting the whl)Ie capital. Wealth is acquired by small, but oftcn repeated accnmulations. But our net revouie will depend, not only on our skill and itJustry, but also on our frugality. TlioJgh a rnan earn m uch, yet if he spend oll h ï will be no richer. This is as rue of nation? as of in - dividunls. Henee wars, expensive governmente, or high taxation forany purpose whotever, will keep any nation poor, however industrious or enterprising it may be.