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of the credit of taxpayers for government borrowing and government trading is a contravention, possibly in many cases a necessary contravention, of the principle of Free Exchange. Mr. Hooper shows how treacherous a basis for the expansion of industry this method affords, and how readily it lends itself to the creation of disastrous financial complications.

Mr. Acworth deals with the vexed question of Stateinterference in railway management. He shows what a limited amount of truth there is in the allegation that a railway is a monopoly. On the important question of tariff legislation, subject to the necessity of State-interference legislative, judicial, and executive for the purpose of preventing undue preferences and unreasonable discriminations, he is disposed to leave the public and the railways to deal with each other on the principle of Free Exchange. In most other respects he suggests that more advantage will be gained by an enforcement of publicity than from any other form of regulation. Just as in the great Free Trade controversy, the maxim was laid down that a hostile tariff is best combatted by a more thorough free trade, so Mr. Acworth argues that the difficulties arising out of an alleged monopoly, like a railway, are best overcome, not by turning it into a real monopoly in the hands of a government department, but by subjecting it as far as possible to the health-giving influence of publicity and Free Exchange.

Mr. Mackay's paper deals with the principle of Free Exchange in its relation to the property of the working classes in their own labour and in their own savings. The argument seeks to justify the opinion that Free Exchange is capable of becoming to labour what a right of free mintage is to bullion, viz. a certain guarantee of employment and wages; further that, in the vast series of exchanges which constitute the economic mechanism of a free community, the value of labour must unceasingly tend to enhancement. It is, therefore, to the organizing influence of Free Exchange that labour has to look for the realization of its legitimate ambition.

Here the controversial portion of the volume may be said to end. The two papers which follow, though not, strictly


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speaking, covered by the title, have a relevance which is sufficiently obvious. Mr. Mallet's paper is a theoretical discussion of one aspect of the interesting problem of taxation. The principle of progression or graduation has been already, as he points out, either avowedly or unconsciously adopted in the financial system of most civilized countries, and its extension is to be looked for in the future. Unless the theory be deliberately adopted that taxation is to be used as a lever for redressing the inequalities of fortune between the different classes of a community, there is, he thinks, much exaggeration both in the fears and in the hopes which this proposal evokes. In the distinction, as stated by Jevons, between value and utilities, he finds a defence of a progressive as opposed to a merely proportional rate of taxation; but he shows that at a point, which can only be discovered by actual experiment, the abstraction by the State of the surplus wealth of individuals may become not merely a deduction from the wealth of a country, but a positive bar to its further growth; further, that taxation is just and politic when it aims at equalizing the sacrifice imposed on individuals, but that it is the reverse when it seeks to equalize incomes.

Mr. Lyttelton, in explaining the state of the law with regard to trade combinations, has adhered strictly to the legal aspect of the question. If there is any force in the argument contained elsewhere in the book that, as regards labour as well as all other forms of wealth, Free Exchange, and not coercive combination, should be our rule of guidance, it is obvious that an estimate of the intricacies of the law of trade combinations is an interesting and pertinent addition to the controversy, even though, as in this case, the writer confines himself to a statement of fact, and takes no responsibility for the general argument in which his narrative may serve as an illustration,


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15, 16

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Early attention paid to theory of

money, but true principle of trade

much misunderstood.


The sect of the Economists.' Their

opinions, their contention in favour

of Free Trade


An abstract of their doctrine, esta-

blishing Liberty and the right of

Property as fundamental principles ·

of civilized society


Their doctrine concerning commerce ;

their assertion that exchangeability
is the essence of wealth; their
denial of the title of wealth to
labour and credit, the error of this

exclusion demonstrated 10-15

The service rendered by the Econo-

mists in exposing the fallacy of

the Balance of Trade doctrine that

in every exchange one side was

a loser.


Their opinion that neither side lost

or gained ; that labour engaged in
agriculture was the only productive

definitions of wealth, their incon.
sistency. In the hands of Say and
Mill the science brought to an
impasse .

Summary of the bearing of doctrine

of Economists and Adam Smith on
Free Trade ; various infringements
of Free Trade considered and
shown to be robbery. Protection,
Slavery, the law of the 'Maximum,
all are forms of Socialism

Error of supposing that England


should abandon Free Trade because

other nations have not adopted it.

If one tariff is bad, two are



Next, the relation of economic specu-

lation on socialism. This turns

mainly on the definition of value


The contradictory statements of

Adam Smith, the true theory held
by Economists and the ancients,
error introduced by Locke. Adam
Smith's doctrine considered at
length, his hopeless attempt to
make labour an invariable standard
of value, its inadequacy demon-


The same confusion throughout Ri-

cardo, his dogma that labour is

the foundation of all value, its

obvious untruth

40, 41

McCulloch and Carey take the same



The importance of this doctrine

consists in the fact that it is

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The inaugural address of President

Cleveland suggests that the Man.

chester school, if dead in England,

has come to life again in the

United States


America the only really protectionist

state. The policy has failed, and

a new era is beginning


In England, on the contrary, we are

retracing our steps and returning

to protection


The object of this paper to forecast

the result of this policy in the two



The view of President Cleveland con-

trasted with that of English poli-

ticians : quotations from his inau-

gural address and from speeches

by Sir William Harcourt, Mr.

Arnold Morley, Sir John Gorst,

and American manufacture con-



American high wages, under present

conditions, exaggerated. Proba-

bility that with free trade they

will rise and take from us our

skilled labour


The change of policy in America to


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