Agricultural Holdings Bill was a case in point: such laws it is said give no real protection to those who need it, and do no good; while they formulate a scheme of relations between individuals, when these had far better frame their own scheme for themselves. This criticism seems to neglect the indirect educative influence which a statute may have in forming public opinion. It is much to have it put on record that certain modes of dealing are desirable, even though little comes of it at first: it enables the government to measure how far compulsion is necessary or how far the voluntary arrangement of landlords and tenants can be trusted; and it also gives opportunities of judging whether the precise requirements of the legislature are those it is best worth while to render compulsory on all. Permissive legislation of this kind may be considered as tentative legislation, and as useful in cases where the public judgment is not so fully informed as to justify compulsion.

There are also cases of permissive legislation when the State transfers the responsibility of directly exercising compulsory powers. Mr. Cross's Artisans Dwelling Act was of this character, as it enabled corporations—at their discretion to exercise somewhat stringent powers in cases that seemed to them to call for their action on sanitary or other grounds. Of course the central government cannot pretend to sufficient knowledge to exercise such control directly by enabling local authorities to act in the matter much may be accomplished.

c. We have had other Acts that were intended to encourage individuals to take a definite line of action: all the old grants of bounties on any article of production or export may be regarded in this light. Nor have such

encouragements entirely ceased since the legislature has given over directing the application of capital. Mr. Gladstone's Friendly Societies Bill of 1866 was specially designed to encourage saving, by giving a better security than private societies could offer. The Education grants together with the elaborate system of inspection through which they are administered may be taken as another case in point: they undoubtedly called forth a large amount of private energy in connexion with education, and have also enabled Government to assume a practical control of all the voluntary schools in the country. Where such a system can be effectively worked the State may be able to call an enormous machinery into operation, and exercise a vast influence on its working at a comparatively small public cost.

d. There is still one other manner of interfering which demands our attention: and this is the case of experimental legislation where trial is made for a short time, or in a limited area, with the view of acquiring more information for more general legislation. A very great part of the industrial and social enactments of the sixteenth, seventeenth, and eighteenth centuries was of this character. The celebrated Statute of 43 Elizabeth, with reference to the Poor, was only a temporary enactment at first, and very many of the laws protecting certain industries, or regulating the methods on which they should be conducted were of a similar type. Bounties were arranged for a time or restrictions were imposed with the view of seeing how they worked. So long as interference with the course of trade was a normal occurrence, comparatively little evil would result from the intervention: but circumstances are entirely altered now. The slight changes in the

incidence of taxation levied for revenue purposes are recognised as an evil, and it would be hardly possible to enforce temporary or local regulations without distorting the course of trade and thus rendering the whole experiment untrustworthy. Nor is the least difficulty that which must arise after the experiment has been made and its results have been noted, for then we may still be at a loss as to the true interpretation of these results.

Legislation must of course be based on empirical knowledge, but this knowledge may be most truly derived from observation of occurrences, the issues are too great and important for us to handle them in experiment.1 The better method of attempting to acquire experience is by tentative legislation which permits and enables individuals to pursue a certain course if they are inclined. We shall thus see the plan tried fairly-because willingly we shall know how it acts under the most favourable circumstances, and we shall know what defects demand a remedy; and this without dislocating the ordinary course of business or introducing a new element of uncertainty into the conduct of trade.

1 See however the argument in favour of direct experiment in legislation by the late Professor Jevons, Contemporary Review, Jan. 1880.

CHAPTER II.

LAWS DIRECTLY ECONOMIC.

1. National Vigour.

45. THE different parts of our economic organism are so inter-connected, and their functions are so closely allied, that any classification is likely to appear arbitrary. Since however some grouping is necessary, the attempt must be made; and a few words may be introduced here with the view of rendering the scheme which has been adopted at least intelligible.

The older English economists were agreed in regarding a vigorous population as the most important condition for the material progress of the nation; and it was not till the Malthusian doctrines had taken a firm hold on the public imagination, that attention was diverted from a care for the condition of the people to calculations as to the increase of their numbers. There are plenty of indications, however, in medical discussions of the alleged deterioration of the race, and in the constant complaints as to the stamina of our recruits, that the question of the effectiveness of our population for industrial or military pursuits is once more attracting the attention it deserves. This is a wide subject and it will be convenient to consider under this heading, only those measures which were directed against mischiefs that were clearly sapping the

strength of a larger or smaller portion of the population: those enactments which dealt with risks to life or limb are more properly regarded, not in connexion with the effective force of the nation, but in their bearing on the social status, and standard of living of those who are exposed to such dangers. The treatment of them is therefore postponed to the next chapter, as they have more bearing on the social condition of some class of citizens, than on the ability of the population to carry on industrial undertakings, and the effectiveness of national labour.

In criticising the principles of these measures it is most interesting to follow closely the discussions which actually took place on the subject while they were passing through Parliament, and occasionally to notice the modifications which they underwent before they became law. It is curious to notice too the names of the members who have contributed from time to time to the effective discussion of economic questions and to see how far the principles advocated above have already been implicitly accepted by the leading politicians of both political parties.

46. The last great battle on the subject of Factory Legislation, and discussion of the justifiability of such restrictions occurred in connexion with Mr. Cross's Bill of 1874.1 This measure reduced the hours of labour to 56 hours in the week; but, as Mr. Cross contended in introducing the bill, it only carried out the principles which had been admitted in all previous legislation, for it was based on sanitary and educational grounds. "He believed that the women who worked in these factories-and any

1 37 and 38 Vict. c. 44.