Withthisdoctrine，thatofcostofproductionasdeterminingpricecollapses，andtheprincipleemergesthatitisnotcostof
production，butdemandandsupply，onwhichdomestic，nolessthaninternational，valuesdepend，thoughthisformulawill
requiremuchinterpretationbeforeitcanbeusedsafelyandwithadvantage。ThusLeslieextendstothewholeofthenational
industrythepartialnegationoftheolderdogmaintroducedbyCairnesthroughtheideaofnon—competinggroups。Hedoes
not，ofcourse，disputetherealoperationofcostofproductiononpriceinthelimitedareawithinwhichratesofprofitand
wagesaredeterminateandknown;buthemaintainsthatitsactiononthelargescaleistooremoteanduncertaintojustify
ourtreatingitasregulatorofprice。Now，ifthisbeso，theentireedificewhichRicardorearedonthebasisoftheidentityof
costofproductionandprice，withitsapparentbutunrealsimplicity，symmetry，andcompleteness，disappears;andthe
groundisclearedforthenewstructurewhichmusttakeitsplace。Lesliepredictsthat，ifpoliticaleconomy，underthatname，
doesnotbenditselftothetaskofrearingsuchastructure，theofficewillspeedilybetakenoutofitshandsbySociology。
Lesliewasasuccessfulstudentofseveralspecialeconomicsubjectsofagriculturaleconomy，oftaxation，ofthedistribution
ofthepreciousmetalsandthehistoryofprices，and，ashasbeenindicated，ofthemovementsofwages。Butitisinrelation
tothemethodandfundamentaldoctrinesofthesciencethathedidthemostimportant，becausethemostopportuneand
needfulwork。And，thoughhiscoursewasclosedtooearlyfortheinterestsofknowledge，andmuchofwhatheproduced
wasmerelyoccasionalandfragmentary，hisserviceswillbefoundtohavebeengreaterthanthoseofmanywhohaveleft
behindthemmoresystematic，elaborate，andpretentiouswritings。
OneofthemostoriginalofrecentEnglishwritersonPoliticalEconomywasW。StanleyJevons（18351882）。The
combinationwhichhepresentedofapredilectionandaptitudeforexactstatisticalinquirywithsagacityandingenuityinthe
interpretationoftheresultswassuchasmightremindusofPetty。Hetendedstronglytobringeconomicsintocloserelation
withphysicalscience。Hemadeamarkedimpressiononthepublicmindbyhisattempttotakestockofourresourcesinthe
articleofcoal。Hisideaofarelationbetweentherecurrencesofcommercialcrisesandtheperiodofthesun—spotsgave
evidenceofafertileandboldscientificimagination，thoughhecannotbesaidtohavesucceededinestablishingsucha
relation。HewasauthorofanexcellenttreatiseonMoneyandtheMechanismofExchange（1875），andofvariousessayson
currencyandfinance，whichhavebeencollectedsincehisdeath，andcontainvigorousdiscussionsonsubjectsofthisnature，
asonbimetallism（withadecidedtendencyinfavourofthesinglegoldstandard），andseveralvaluablesuggestions，aswith
respecttothemostperfectsystemofcurrency，domesticandinternational，andinparticulartheextensionofthepaper
currencyinEnglandtosmallerdenominations。Heproposedinotherwritings（collectedinMethodsofSocialReform，1883）
avarietyofmeasures，onlypartlyeconomicintheircharacter，directedespeciallytotheelevationoftheworkingclasses，one
ofthemostimportantbeinginrelationtotheconditionsofthelabourofmarriedwomeninfactories。Thiswasoneof
severalinstancesinwhichherepudiatedthelaisserfaireprinciple，which，indeed，inhisbookonTheStateinRelationto
Labour（1882），herefutedintheclearestandmostconvincingway，withoutchangingthepositionhehadalwaysmaintained
asanadvocateoffreetrade。Towardstheendofhiscareer，whichwasprematurelyterminated，hewasmoreandmore
throwingoff\"theincubusofmetaphysicalideasandexpressions\"whichstillimpededtherecognitionorconfusedthe
appreciationofsocialfacts。Hewas，inhisownwords，evermoredistinctlycomingtotheconclusion\"thattheonlyhopeof
attainingatruesystemofeconomicsistoflingaside，onceandforever，themazyandpreposterousassumptionsofthe
Ricardianschool。\"Withrespecttomethod，thoughhedeclaresittobehisaimto\"investigateinductivelytheintricate
phenomenaoftradeandindustry，\"hisviewshadnotperhapsassumedadefinitiveshape。Theeditorofsomeofhisremains
declinestoundertakethedeterminationofhisexactpositionwithrespecttothehistoricalschool。Thefullestindicationswe
possessonthatsubjectaretobefoundinalectureof1876，OntheFutureofPoliticalEconomy。Hesawtheimportance
andnecessityineconomicsofhistoricalinvestigation，alineofstudywhichhehimselfwasledbynativebenttoprosecutein
somedirections。Buthescarcelyapprehendedthefullmeaningofthehistoricalmethod，whichheerroneouslycontrasted
withthe\"theoretical，\"andapparentlysupposedtobeconcernedonlywithverifyingandillustratingcertainabstractdoctrines
restingonindependentbases。Hence，whilsthedeclaredhimselfinfavourof\"thoroughreformandreconstruction，\"he
soughttopreservetheapriorimodeofproceedingalongsideof，andconcurrentlywith，thehistorical。Politicaleconomy，in
fact，hethoughtwasbreakingupandfallingintoseveral，probablyintomany，differentbranchesofinquiry，prominent
amongstwhichwouldbethe\"theory\"asithaddescendedfromhisbestpredecessors，especiallythoseoftheFrenchschool，
whilstanotherwouldbethe\"historicalstudy，\"asitwasfollowedinEnglandbyJones，Rogers，andothers，andasithad
beenproclaimedingeneralprinciplebyhiscontemporaryCliffeLeslie。Thiswasoneofthoseeclecticviewswhichhaveno
permanentvalidity，butareusefulinfacilitatingatransition。Thetwomethodswilldoubtlessforatimecoexist，butthe
historicalwillinevitablysupplantitsrival。WhatJevonsmeantasthe\"theory\"hewishedtotreatbymathematicalmethods
（seehisTheoryofPoliticalEconomy，1871;2ded。，1879）。Thisprojecthad，aswehaveseen，beenentertainedandpartially
carriedintoeffectbyothersbeforehim，thoughheundulymultipliesthenumberofsuchearlieressayswhen，forexample，he
mentionsRicardoandJ。S。Millaswritingmathematicallybecausetheysometimesillustratedthemeaningoftheir
propositionsbydealingwithdefinitearithmeticalquantities。Suchillustrations，ofwhichaspecimenissuppliedbyMill’s
treatmentofthesubjectofinternationaltrade，havereallynothingtodowiththeuseofmathematicsasaninstrumentfor
economicresearch，orevenfortheco—ordinationofeconomictruths。Wehavealready，inspeakingofCournot，explained
why，asitseemstous，theapplicationofmathematicsinthehighersensetoeconomicsmustnecessarilyfail，andwedonot
thinkthatitsucceededinJevons’shands。Hisconceptionof\"finalutility\"isingenious。Butitisnomorethanamodeof
presentingthenotionofpriceinthecaseofcommoditieshomogeneousinqualityandadmittingofincreasebyinfinitestimal
additions;andtheexpectationofbeingablebymeansofittosubjecteconomicdoctrinetoamathematicalmethodwillbe
foundillusory。Heoffers（16）astheresultofahundredpagesofmathematicalreasoningwhathecallsa\"curious
conclusion，\"（17）inwhich\"thekeystoneofthewholetheoryofexchangeandoftheprincipalproblemsofeconomicslies。\"
Thisisthepropositionthat\"theratioofexchangeofanytwocommoditieswillbethereciprocaloftheratioofthefinal
degreesofutilityofthequantitiesofcommodityavailableforconsumptionaftertheexchangeiscompleted。\"Nowaslongas
weremainintheregionofthemetaphysicalentitiestermedutilities，thistheoremisunverifiableandindeedunintelligible，
becausewehavenomeansofestimatingquantitativelythementalimpressionoffinal，oranyother，utility。Butwhenwe
translateitintothelanguageofreallife，measuringthe\"utility\"ofanythingtoamanbywhathewillgiveforit，the
propositionisatonceseentobeatruism。WhatJevonscalls\"finalutility\"beingsimplythepriceperunitofquantity，the
theoremstatesthat，inanactofexchange，theproductofthequantityofthecommoditygivenbyitspriceperunitof
quantity（estimatedinathirdarticle）isthesameasthecorrespondingproductforthecommodityreceivedatruthso
obviousastorequirenoapplicationofthehighermathematicstodiscoverit。Ifwecannotlookforresultsmoresubstantial
thanthis，thereisnotmuchencouragementtopursuesuchresearches，whichwillinfactneverbeanythingmorethan
academicplaythings，andwhichinvolvetheveryrealevilofrestoringthe\"metaphysicalideasandexpressionspreviously
discarded。ThereputationofJevonsasanacuteandvigorousthinker，inspiredwithnoblepopularsympathies，issufficiently
established。Buttheattempttorepresenthim，inspiteofhimself，asafollowerandcontinuatorofRicardo，andasoneofthe
principalauthorsofthedevelopmentofeconomictheory（meaningby\"theory\"theoldaprioridoctrine）canonlylowerhim
inestimationbyplacinghisservicesongroundswhichwillnotbearcriticism。Hisnamewillsurvivemconnection，notwith
newtheoreticalconstructions，butwithhistreatmentofpracticalproblems，hisfreshandlivelyexpositions，and，aswehave
shown，hisenergetictendencytoarenovationofeconomicmethod。
ArnoldToynbee（18521883），wholeftbehindhimabeautifulmemory，filledashewaswiththeloveoftruthandanardent
andactivezealforthepublicgood，wasauthorofsomefragmentaryorunfinishedpieces，whichyetwelldeserveattention
bothfortheirintrinsicmeritandasindicatingthepresentdriftofallthehighestnatures，especiallyamongstouryounger
men，inthetreatmentofeconomicquestions。（18）Hehadabeliefintheorganizingpowerofdemocracywhichitisnoteasyto
share，andsomestrangeideasduetoyouthfulenthusiasm，suchas，forexample，thatMazziniis\"thetrueteacherofour
age;\"andhefluctuatesconsiderablyinhisopinionoftheRicardianpoliticaleconomy，inoneplacedeclaringittobea
detected\"intellectualimposture，\"whilstelsewhere，apparentlyundertheinfluenceofBagehot，hespeaksofitashavingbeen
inrecenttimes\"onlycorrected，re—stated，andputintotheproperrelationtothescienceoflife，\"meaningapparently，bythis
last，generalsociology。Hesaw，however，thatourgreathelpinthefuturemustcome，asmuchhadalreadycome，fromthe
historicalmethod，towhichinhisownresearcheshegavepreponderantweight。Itstruecharacter，too，heunderstoodbetter
thanmanyevenofthosewhohavecommendedit;forheperceivedthatitnotmerelyexplainstheactionofspeciallocalor
temporaryconditionsoreconomicphenomena，butseeks，bycomparingthestagesofsocialdevelopmentindifferent
countriesandtimes，to\"discoverlawsofuniversalapplication。\"If，aswearetold，thereexistsatOxfordarisinggroupof
menwhooccupyapositioninregardtoeconomicthoughtsubstantiallyidenticalwiththatofToynbee，thefactisoneof
goodomenforthefutureofthescience。
AMERICA
Foralongtime，aswehavealreadyobserved，littlewasdonebyAmericainthefieldofEconomics。Themostobvious
explanationofthisfact，whichholdswithrespecttophilosophicalstudiesgenerally，istheabsorptionoftheenergiesofthe
nationinpracticalpursuits。FurtherreasonsaresuggestedintwoinstructiveEssaysonebyProfessorCharlesF。Dunbarin
theNorthAmericanReview，1876，theotherbyCliffeLeslieintheFortnightlyReviewforOctober1880。
WehavealreadyreferredtotheReportonManufacturesbyAlexanderHamilton;andthememorialdrawnupbyAlbert
Gallatin（1832），andpresentedtoCongressfromthePhiladelphiaConventioninfavourofTariffreform，deservestobe
mentionedasanablestatementoftheargumentsagainstprotection。ThreeeditionsoftheWealthofNationsappearedin
America，in1789，1811，and1818，andRicardo’sprincipalworkwasreprintedtherein1819。ThetreatisesofDaniel
Raymond（1820），ThomasCooper（1826），WillardPhillips（1828），FrancisWayland（1837），andHenryVethake（1838）
madeknowntheprinciplesarrivedatbyAdamSmithandsomeofhissuccessors。Rae，aScotchmansettledinCanada，
published（1834）abookentitledNewPrinciplesofPoliticalEconomy，whichhasbeenhighlypraisedbyJ。S。Mill（bk。i。
chap。ii），especiallyforitstreatmentofthecauseswhichdeterminetheaccumulationofcapital。Theprincipalworkswhich
afterwardsappeareddowntothetimeoftheCivilWarwereFrancisBowen’sPrinciplesofPoliticalEconomy，1856，
afterwardsentitledAmericanPoliticalEconomy，1870;JohnBascom’sPoliticalEconomy，1859;andStephenColwell’sWaysandMeansofPayment，1859。IntheperiodincludingandfollowingthewarappearedAmasaWalker’sScienceof
Wealth，1866;i8thed。，1883，andA。L。Perry’sElementsofPoliticalEconomy，1866。A。WalkerandPerryarefree—traders;
PerryisadiscipleofBastiat。OfCareywehavealreadyspokenatsomelength;hisAmericanfollowersareE。PeshineSmith
（AManualofPoliticalEconomy，1853），WilliamElder（QuestionsoftheDay，1871），andRobertE。Thompson（Social
Science，1875）。ThenameofnoAmericaneconomiststandshigherthanthatofGeneralFrancisAWalker（sonofAmasa
Walker），authorofspecialworksontheWagesQuestion（1876）andonMoney（1878），aswellasofanexcellentgeneral
treatiseonPoliticalEconomy（1883;2ded。1887）。EarlyworksonAmericaneconomichistoryarethoseofA。S。Bolles，
entitledIndustrialHistoryoftheUnitedStates（1878），andFinancialHistoryoftheUnitedStates，17741885，publishedin
1879andlateryears。
ThedeeperandmorecomprehensivestudyofthesubjectwhichhasoflateyearsprevailedinAmerica，addedtoinfluences
fromabroad，hasgivenrise，therealso，toadivisionofeconomistsintotwoschoolsanoldandanewsimilartothose
whichwehavefoundconfrontingeachotherelsewhere。AmeetingwasheldatSaratogainSeptember1885，atwhicha
societywasfounded，calledtheAmericanEconomicAssociation。Theobjectofthismovementwastoopposetheideathat
thefieldofeconomicresearchwasclosed，andtopromotealargerandmorefruitfulstudyofeconomicquestions。Thesame
spiritledtotheestablishmentoftheQuarterlyJournalofEconomics，publishedatBostonforHarvardUniversity。Thefirst
articleinthisJournalwasbyC。F。Dunbar，whosereviewofaCenturyofAmericanPoliticalEconomywehavealready
noticed;andinthisarticlehesetout，intheinterestofconciliation，thetendenciesofthetwoschools。
Thisdivisionofopinionwasmanifestedinastrikingwaybyadiscussiononthemethodandfundamentalprinciplesof
Economics，whichwasconductedinthepagesoftheperiodicalentitledScience，andhassincebeenreproducedinaseparate
form（ScienceEconomicDiscussion，NewYork，1886）。Inthiscontroversytheviewsofthenewschoolwereexpounded
andadvocatedwithgreatability。Thetruenatureofeconomicmethod，therelativitybothofeconomicinstitutionsandof
economicthought，arisingfromtheirdependenceonvaryingsocialconditions，thecloseconnectionofeconomicdoctrine
withcontemporaryjurisprudence，thenecessityofkeepingeconomicsinharmonywithsocialethics，andtheimportanceofa
studyofconsumption（deniedbyJ。S。Millandothers）wereallexhibitedwithremarkableclearnessandforce。（19）Thereis
everyreasontobelievewithLesliethatAmericawilltakeanactivepartbothinbringingtolighttheeconomicproblemsof
thefutureandinworkingouttheirsolution。
NOTES:
1。Itwouldbeagraveerrortosupposethatthesubjectionofsocialphenomenatonaturallawsaffordsanyencouragement
toaspiritoffatalisticquietism。Onthecontrary，itistheexistenceofsuchlawsthatisthenecessarybasisofallsystematic
actionfortheimprovementeitherofourconditionorofournature，asmaybeseenbyconsideringtheparallelcaseof
hygienicandthereapeuticagencies。And，sincethedifferentordersofphenomenaaremoremodifiableinproportiontotheir
greatercomplexity，thesocialfieldadmitsofmoreextensiveandefficacioushumaninterventionthantheinorganicorvital
domain。InrelationtothedynamicalsideofSociology，whilstthedirectionandessentialcharacteroftheevolutionare
predetermined，itsrateandsecondaryfeaturesarecapableofmodification。
2。Hehadalreadyin1822statedhisfundamentalprinciplesinanepusculewhichisreproducedintheAppendixtohisPolitiquePositive。
3。UndertheinfluenceoftheseviewsofComte，J。S。MillattemptedinBookIV。ofhisPoliticalEconomyatreatmentof
EconomicDynamics;butthatappearstousoneoftheleastsatisfactoryportionsofhiswork。
4。ThisphraseologywasprobablyborrowedfromthecontroversyonthemethodofjurisprudencebetweenThibautonthe
onehandandSavignyandtheschoolofHugoontheother。
5。Itwillineachcasebenecessarytoexaminewhethertheactioncanbestbetakenbythecentral，orbythelocal，
government。
6。ThisshouldberememberedbyreadersofM。Leroy—Beaulieu’sworkonCollectivism（1884），inwhichbetreatsSchäffleas
theprincipaltheoreticrepresentativeofthatformofsocialism。
7。Bythepresentwriter;beinganAddresstotheSectionofEconomicScienceandStatisticsoftheBritishAssociationatits
meetinginDublinin1878。
8。GuidetotheStudyofPoliticalEconomy，1880。SeealsotheBibliographicalmatterinhisPrimiElementidiE。P。，vol。i，
8thed。，1888。
9。SeehisSaggidiEconomiaPolitica。1881
10。TheremarkablebookMoneyandMorals，byJohnLalor，1852。waswrittenpartlyundertheinfluenceofCarlyle。There
isagoodmonographentitledJohnRuskin’s，Economist，byP。Geddes，1884。
11。SeeherAutobiogaphy。2ded。，vol。ii，p。244。
12。AvigorousattackonthereceivedsystemwasmadebyDavidSymeinhisOutlinesofanIndustrialScience，1876。
13。Jones，whosewritingswereapparentlyunknowntoBagehot，had。aswehaveseen，insomedegreeanticipatedhiminhis
exposition。
14。MrRogershassincecontinuedthiswork，andhasalsopublishedTheFirstNineYearsoftheBankofEngland，1887。
15。ThatservicewasduetoF。D。Lange（RefutationoftheWage—FundTheoryofModernPoliticalEconomy，1866）。
Leslie’streatmentofthesubjectwascontainedinanarticleofFraser’sMagazineforJuly1868。reprintedasanappendixto
hisLand—SystemsandIndustrialEconomyofIreland。England，andContinentalCountries，1870。
16。TheoryofPoliticalEconomy。2ded。，p。103。
17。FortnightlyReviewforNovember1876，p。617。
18。SeehisLecturesonTheIndustrialRevolutioninEngland，withMemoirbytheMasterofBalliol，1884;2ded。，1887。
19。ThecontributorsonthesideofthenewschoolwereDr。EdwinR。A。Seligman，ProfessorE。J。James，Professor
RichardT。Ely，HenryC。Adams，RichmondMayoSmith，andSimonN。Patten。Therepresentativesoftheoldschoolwere
ProfessorSimonNewcomb，F。W。Taussig，andArthurT。Hadley。
CHAPTERVII
CONCLUSION
Letusbrieflyconsiderinconclusion，bythelightoftheprecedinghistoricalsurvey，whatappeartobethestepsinthe
directionofarenovationofeconomicsciencewhicharenowatoncepracticableandurgent。
I。Economicinvestigationhashithertofallenforthemostpartintothehandsoflawyersandmenofletters，notintothoseof
agenuinelyscientificclass。Norhaveitscultivatorsingeneralhadthatsoundpreparationinthesciencesofinorganicand
vitalnaturewhichisnecessarywhetherassupplyingbasesofdoctrineorasfurnishinglessonsofmethod。Theireducation
hasusuallybeenofametaphysicalkindHencepoliticaleconomyhasretainedmuchoftheformandspiritwhichbelongedto
itintheseventeenthandeighteenthcenturies，insteadofadvancingwiththetimes，andassumingatrulypositivecharacter。It
ishomogeneouswiththeschoollogic，withtheabstractunhistoricaljurisprudence，withtheaprioriethicsandpolitics，and
othersimilarantiquatedsystemsofthought;anditwillbefoundthatthosewhoinsistmoststronglyonthemaintenanceof
itstraditionalcharacterhavederivedtheirhabitualmentalpabulumfromthoseregionsofobsoletespeculation。Wecanthus
understandtheattitudeoftruemenofsciencetowardsthisbranchofstudy，whichtheyregardwithill—disguisedcontempt，
andtowhoseprofessorstheyeitherrefuseorveryreluctantlyconcedeaplaceintheirbrotherhood。
Theradicalviceofthisunscientificcharacterofpoliticaleconomyseemstolieinthetooindividualandsubjectiveaspect
underwhichithasbeentreated。Wealthhavingbeenconceivedaswhatsatisfiesdesires，thedefinitelydeterminablequalities
possessedbysomeobjectsofsupplyingphysicalenergy，andimprovingthephysiologicalconstitution，areleftoutof
account。Everythingisgaugedbythestandardofsubjectivenotionsanddesires。Alldesiresareviewedasequallylegitimate，
andallthatsatisfiesourdesiresasequallywealth。Valuebeingregardedastheresultofapurelymentalappreciation，the
socialvalueofthingsinthesenseoftheirobjectiveutility，whichisoftenscientificallymeasurable，ispassedover，andratio
ofexchangeisexclusivelyconsidered。Thetruthis，thatatthebottomofalleconomicinvestigationmustlietheideaofthe
destinationofwealthforthemaintenanceandevolutionofasociety。And，ifweoverlookthis，oureconomicswillbecomea
playoflogicoramanualforthemarket，ratherthanacontributiontosocialscience;whilstwearinganairofcompleteness，
theywillbeintruthone—sidedandsuperficial。EconomicscienceissomethingfarlargerthantheCatallacticstowhichsome
havewishedtoreduceitAspecialmeritofthephysiocratsseemstohavelainintheirvagueperceptionofthecloserelation
oftheirstudytothatofexternalnature;and，sofar，wemustrecurtotheirpointofview，basingoureconomicsonphysics
andbiologyasdevelopedinourowntime。（1）Further，thesciencemustbeclearedofallthetheologico—metaphysicalelements
ortendencieswhichstillencumberanddeformit。Teleologyandoptimismontheonehand，andthejargonof\"natural
liberty\"and\"indefeasiblerights\"ontheother，mustbefinallyabandoned。
Norcanweassumeasuniversalpremises，fromwhicheconomictruthscanbedeductivelyderived，theconvenientformulas
whichhavebeenhabituallyemployed，suchashatallmendesirewealthanddislikeexertion。Thesevaguepropositions，
whichprofesstoanticipateandsupersedesocialexperience，andwhichnecessarilyintroducetheabsolutewhererelativity
shouldreign，mustbelaidaside。Thelawsofwealth（toreverseaphraseofBuckle’s）mustbeinferredfromthefactsof
wealth，notfromthepostulateofhumanselfishness。Wemustbendourselvestoaseriouslirectstudyofthewayinwhich
societyhasactuallyaddresseditselfandnowaddressesitselftoitsownconservationandevolutionthroughthesupplyofits
materialwants。Whatorgansithasdevelopedforthispurpose，howtheyoperate，howtheyareaffectedbythemediumin
whichtheyactandbythecoexistentorgansdirectedtootherendshowintheirturntheyreactonthoselatter，howtheyand
theirfunctionsareprogressivelymodifiedinprocessoftinetheseproblems，whetherstaticalordynamical，areallquestions
offact，ascapableofbeingstudiedthroughobservationandhistoryasthenatureandprogressofhumanlanguageor
religion，oranyothergroupofsocialphenomena。Suchstudywillofcourserequireacontinued\"reflectiveanalysis\"ofthe
resultsofobservation;and，whilsteliminatingallprematureassumptions，weshalluseascertainectruthsrespectinghuman
natureasguidesintheinquiryandaidstowardstheinterpretationoffacts。Andtheemploymentofdeliberatelyinstituted
hypotheseswillbelegitimate，butonlyasanoccasionallogicalartifice。
II。EconomicsmustbeconstantlyregardedasformingonlyonedepartmentofthelargerscienceofSociology，invital
connectionwithitsotherdepartments，andwiththemoralsynthesiswhichisthecrownofthewholeintellectualsystem。We
havealreadysufficientlyexplainedthephilosophicalgroundsfortheconclusionthattheeconomicphenomenaofsociety
cannotbeisolated，exceptprovisionally，fromtherest，that，infact，alltheprimarysocialelementsshouldbehabitually
regardedwithrespecttotheirmutualdependenceandreciprocalactions。Especiallymustwekeepinviewthehighmoral
issuestowhichtheeconomicmovementissubservient，andintheabsenceofwhichitcouldneverinanygreatdegreeattract
theinterestorfixtheattentioneitherofeminentthinkersorofright—mindedmen。Theindividualpointofviewwillhaveto
besubordinatedtothesocial;eachagentwillhavetoberegardedasanorganofthesocietytowhichhebelongsandofthe
largersocietyoftherace。Theconsiderationofinterests，asGeorgeEliothaswellsaid，mustgiveplacetothatoffunctions。
Theolddoctrineofright，whichlayatthebasisofthesystemof\"naturalliberty，\"hasdoneitstemporarywork;adoctrine
ofdutywillhavetobesubstituted，fixingonpositivegroundsthenatureofthesocialco—operationofeachclassandeach
memberofthecommunity，andtheruleswhichmustregulateitsjustandbeneficialexercise。
Turningnowfromthequestionofthetheoreticconstitutionofeconomics，andviewingthesciencewithrespecttoits
influenceonpublicpolicy，weneednotatthepresentdaywastewordsinrepudiatingtheideathat\"non—government\"inthe
economicsphereisthenormalorderofthings。Thelaisser—fairedoctrine，comingdowntousfromthesystemofnatural
liberty，waslongthegreatwatchwordofeconomicorthodoxy。IthadaspecialacceptanceandpersistenceinEnglandin
consequenceofthepoliticalstrugglefortherepealofthecornlaws，whichmadeeconomicdiscussioninthiscountryturn
almostaltogetheronfreetradeastateofthingswhichwascontinuedbytheefforttoprocureamodificationofthe
protectivepolicyofforeignnations。Butithasnowforsometimelostthesacrosanctcharacterwithwhichitwasformerly
invested。Thisisaresultnotsomuchofscientificthoughtasofthepressureofpracticalneedsacausewhichhasmodified
thesuccessiveformsofeconomicopinionmorethantheoristsarewillingtoacknowledge。Socialexigencieswillforcethe
handsofstatesmen，whatevertheirattachmenttoabstractformulas;andpoliticianshavepracticallyturnedtheirbacksonlaisserfaire。TheStatehaswithexcellenteffectproceededaconsiderablewayinthedirectionofcontrolling，forendsof
socialequityorpublicutility，theoperationsofindividualinterest。Theeconomiststhemselveshaveforthemostpartbeen
convertedonthequestion;amongsttheoristsHerbertSpencerfoundhimselfalmostavoxclamantisindesertoinprotesting
againstwhathecalledthenewslavery\"ofGovernmentalinterference。Hewillprotestinvain，sofarasheseeksto
rehabilitatetheoldabsolutedoctrineoftheeconomicpassivityoftheState。Butitiscertainlypossiblethatevenbyvirtueof
theforceofthereactionagainstthatdoctrinetheremaybeanexcessiveorprecipitatetendencyintheoppositedirection。
WiththecourseofproductionorexchangeconsideredinitselftherewillprobablybeinEnglandlittledispositiontomeddle。
Butthedangersandinconvenienceswhicharisefromtheunsettledconditionoftheworldoflabourwilldoubtlessfromtime
totimehere，aselsewhere，prompttoprematureattemptsatregulation。Apart，however，fromtheremovalofevilswhich
threatenthehealthoftheworkersorthepublicpeace，andfromtemporarypalliativestoeaseoffsocialpressure，theright
policyoftheStateinthisspherewillforthepresentbeoneofabstention。Itisindeedcertainthatindustrialsocietywillnot
permanentlyremainwithoutasystematicorganization。Themereconflictofprivateinterestswillneverproducea
well—orderedcommonwealthoflabour。FreiheitistkeineLessung。Freedomisforsociety，asfortheindividual，the
necessaryconditionprecedentofthesolutionofpracticalproblems，bothasallowingnaturalforcestodevelopthemselves
andasexhibitingtheirspontaneoustendencies;butitisnotinitselfthesolution。Whilst，however，anorganizationofthe
industrialworldmaywithcertaintybeexpectedtoariseinprocessoftime，itwouldbeagreaterrortoattempttoimprovise
one。Wearenowinaperiodoftransition。Ourrulingpowershavestillanequivocalcharacter;theyarenotinrealharmony
withindustriallife，andareinallrespectsimperfectlyimbuedwiththemodernspirit。Besidestheconditionsoftheneworder
arenotyetsufficientlyunderstood。Theinstitutionsofthefuturemustbefoundedonsentimentsandhabits，andthesemust
betheslowgrowthofthoughtandexperience。Thesolution，indeed，mustbeatalltimeslargelyamoralone;itisthe
spiritualratherthanthetemporalpowerthatisthenaturalagencyforredressingormitigatingmostoftheevilsassociated
withindustriallife。（2）Infact，ifthereisatendencyandwemayadmitthatsuchatendencyisrealorimminenttopushthe
Statetowardsanextensionofthenormallimitsofitsactionforthemaintenanceofsocialequity，thisisdoubtlessinsome
measureduetothefactthatthegrowingdissidenceonreligiousquestionsinthemostadvancedcommunitieshasweakened
theauthorityoftheChurches，anddeprivedtheirinfluenceofsocialuniversality。Whatisnowmosturgentisnotlegislative
interferenceonanylargescalewiththeindustrialrelations，buttheformation，inboththehigherandlowerregionsofthe
industrialworld，ofprofoundconvictionsastosocialduties，andsomemoreeffectivemodethanatpresentexistsof
diffusing，maintaining，andapplyingthoseconvictions。Thisisasubjectintowhichwecannotenterhere。Butitmayatleast
besaidthattheonlypartiesincontemporarypubliclifewhichseemrightlytoconceiveoradequatelytoappreciatethe
necessitiesofthesituationarethosethataim，ontheonehand，attherestorationoftheoldspiritualpower，or，ontheother，
attheformationofanewone。AndthisleadstotheconclusionthatthereisonesortofGovernmentalinterferencewhichthe
advocatesoflaisserfairehavenotalwaysdiscountenanced，andwhichyet，morethananyother，tendstopreventthe
gradualandpeacefulriseofanewindustrialandsocialsystem，namely，theinterferencewithspirituallibertybysettingup
officialtypesofphilosophicaldoctrine，andimposingrestrictionsontheexpressionanddiscussionofopinions。
Itwillbeseenthatourprincipalconclusionrespectingeconomicactionharmoniseswiththatrelatingtothetheoreticstudy
ofeconomicphenomena。For，asweheldthatthelattercouldnotbesuccessfullypursuedexceptasadulysubordinated
branchofthewiderscienceofSociology，soinpracticalhumanaffairswebelievethatnopartialsynthesisispossible，but
thataneconomicreorganizationofsocietyimpliesauniversalrenovation，intellectualandmoralnolessthanmaterial。The
industrialreformationforwhichwesternEuropegroansandtravails，andtheadventofwhichisindicatedbysomany
symptoms（thoughitwillcomeonlyasthefruitoffaithfulandsustainedeffort），willbenoisolatedfact，butwillformpartof
anappliedartoflife，modifyingourwholeenvironment，affectingourwholeculture，andregulatingourwholeconductina
word，directingallourresourcestotheonegreatendoftheconservationanddevelopmentofHumanity。
NOTES:
1。ThisaspectofthesubjecthasbeenablytreatedinpaperscontributedtotheProceedingsoftheRoyalSocietyof
Edinburghonseveraloccasion，duringandsince1881byMr。P。Geddes，wellknownasabiologist。
2。Theneglectofthisconsideration，andtheconsequentundueexaltationofStateaction，which，thoughquitelegitimate，is
altogetherinsufficient，appearstobetheprincipaldangertowhichthecontemporaryGermanschoolofeconomistsis
exposed。WhenSchmollersays，\"TheStateisthegrandestexistingethicalinstitutionfortheeducationofthehumanrace，\"
hetransferstoitthefunctionsoftheChurch。TheeducationalactionoftheStatemustbe，inthemain，onlyindirect。