CONTENTS.

LECTURE I.

INTRODUCTORY.

PAGK

§ 1. Unsettled condition of Political Economy as to its main

doctrines .

Traceable chiefly to the influence exerted by the practical
successes of the science on its method

§ 2. Political Economy-'the Science of Wealth'

Reasons for this limitation of the inquiry

M. Say's views considered .

§ 3. Significance of the term 'science' in the definition of Political

Economy.

Meaning of the expression 'laws of the phenomena of

wealth'

18

Neutral attitude of Political Economy in presence of com-
peting systems of social or industrial life

Indefinitely progressive nature of economic investigation

Practical evils which have resulted from ignoring the scien-

tific character of this study

LECTURE II.

OF THE MENTAL AND PHYSICAL PREMISSES OF POLITICAL ECONOMY, AND

OF THE LOGICAL CHARACTER OF THE DOCTRINES THENCE DEDUCED.

§ 1. Position occupied by economic speculation in relation to the

two great departments of existence-matter and mind

Views on this point of Mr. Mill and of Mr. Senior . .

Criticism of these views

27

28

31

Political Economy neither a purely mental nor a purely
physical inquiry, but referable to a class of studies inter-
mediate between mental and physical inquiries

Proper limits of economic inquiry

§ 2. Mental and physical premisses of Political Economy.

Secondary influences.

How far should moral and religious considerations be taken

account of in economic investigation.

44

45

51

§ 3. Discussion of the question whether Political Economy is a

'positive' or a 'hypothetical' science

Mr. Senior's view criticized

LECTURE III.

OF THE LOGICAL METHOD OF POLITICAL ECONOMY.

§ 1. Common notion that economic investigation should be con-
ducted according to the 'inductive method'

Latitude of meaning with which the expression 'inductive
method' has been employed by authoritative writers
Examination of the doctrine that 'induction,' in the strict
sense of the term, is the true path of economic inquiry

§ 2. Logical position of the speculator on the physical universe at

the outset of physical inquiry

64

The method of induction (as distinguished from deduction)

imperative at this stage

Reason of this.

§ 3. This reason does not hold in economic investigation, because
the ultimate principles of Political Economy, being the con-
clusions and proximate phenomena of other branches of
knowledge, admit of direct proof.

§ 4. The economist, excluded from the use of experiment, but has
at his disposal an inferior substitute.

Place of hypothesis in economic reasoning

Use of this expedient by Ricardo

Place of hypothesis in physical investigation.

§ 5. Place of statistics in economic reasoning.

In no respect different from that in which they stand to

other sciences which, like Political Economy, have reached

the deductive stage

LECTURE IV.

OF THE LOGICAL METHOD OF POLITICAL ECONOMY—(continued).

§ 1. The method of Political Economy inculcated in the preceding

lecture, the same which has, in fact, been followed by the

leading authorities in the science .

Mr. Tooke's method in monetary investigation

§ 2. Analysis of the doctrine that 'cost of production regulates the

value of freely produced commodities'

Nature of the evidence by which an economic law is estab-
lished or refuted

§ 3. Illustrations-from the 'Wealth of Nations

LECTURE V.

OF THE SOLUTION OF AN ECONOMIC PROBLEM, AND OF THE DEGREE OF

PERFECTION OF WHICH IT 18 SUSCEPTIBLE.

§ 1. Circumstances in which an economic law, regarded logically,
differs from a law in the more advanced physical sciences--

unsusceptibility of precise quantitative statement
[Note.-Mr. McLeod's and Mr. Jennings' view]

Unprecise character of economic laws illustrated by the
theory of the decline of profits

And by the variations in the price of food

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110

112

115

And by the effects of changes of taxation on consumption

§ 2. Consequence of the unprecise character of economic laws as

affecting the solution of economic problems

Illustrations-drain of silver to the East in 1856

to 1856 inclusive

§ 3. Prevalent ignorance as to what the solution of an economic

OF THE PLACE AND PURPOSE OF DEFINITION IN POLITICAL ECONOMY.

§ 1. Definition in positive science embraces two operations-classi-

§ 2. Danger of too great rigidity in nomenclature - Sir John

Herschel

Paucity of definitions in the writings of the early investi-

gators in Political Economy, the result of a sound dis-

cretion.

In the present state of science definitions are needed

§ 3. The objection to a definition that it is founded on an attribute

admitting of degrees, not valid

§ 4. Mr. Mill's aphorism respecting the rule which should guide us

in choosing a nomenclature.

-Nomenclature in Political Economy ought to be significant.

Nomenclature in chemistry at once significant and technical

How far similar excellence in its nomenclature is attainable

by Political Economy.

Two-fold remedy for unavoidable defects

§ 5. General results of the discussion

LECTURE VII.

OF THE MALTHUSIAN DOCTRINE OF POPULATION.

§ 1. Statement of the Malthusian doctrine

Logical process by which Malthus established it

[Note.-Objection that the doctrine, though true in the

abstract, is without practical importance, considered]

§ 2. Important consequences, theoretical and practical, flowing from

the doctrine

[Note.--Misrepresentations of Malthus]

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133

134

135

136

138

142

143

145

.

The objection taken is not inconsistent with the truth of the

Malthusian view

§ 3. Mr. Rickards' argument against the position of Malthus, con-

sidered

On the other hand, the conclusions contended for by Mr.

Rickards might have been accepted by Malthus.

The issue for consideration, therefore, is not as to the truth,

but as to the pertinency, with reference to economic ends,

of the positions respectively of Malthus and of his critic. 166

Mr. Rickards' doctrine 'as to the natural ascendency of the

force of production over the force of population,' ex-

amined

§ 4. Further proof of the irrelevancy of Mr. Rickards' argument

furnished by his practical maxims, which are in effect

Malthusian

Charge against Malthus that his doctrine implies a 'miscal-

culation of means to ends in the arrangements of the

universe'.

179

LECTURE VIII.

OF THE THEORY OF RENT.

PAGE

§ 1. The purpose of a theory of rent is to explain the fact of rent.

'Economic rent' defined

Theory of the Physiocrats .

In what respect it failed to solve the problem

Adam Smith's contribution to the doctrine as left by the

Physiocrats

182

184

185

186

187

In what respect the doctrine, as thus enlarged, still failed to

solve the problem.

187

The true solution first suggested by Dr. Anderson, and first

fully expounded by Ricardo

188

190

§ 2. Statement and proof of Ricardo's theory of rent

197

§ 3. Phenomena of rent which are not covered by Ricardo's theory. 196

Such instances are of the nature of 'residual phenomena '

The cause of rent in all such cases is monopoly

§ 4. Is it possible to embrace all the facts of rent under a single

principle say the principle of monopoly ?-discussed

The incidents of rent, in relation to price, taxation, and other

influences, vary according to the source from which it

arises

§ 5. Mr. Rickards' argument against 'the diminishing productive-

ness of the land'

200

201

202

207

The issue raised is not as to the truth of the doctrine, but as

to its pertinency with reference to the ends of economic

investigation.

210

Mr. Rickards' criticism in effect impugns the whole received

system of inductive philosophy

And is tantamount to abandoning the scientific pretensions

of Political Economy.

214