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eighteen distinct operations is performed by one person. But if the 48,000 pins daily made were more than sufficient to supply the consumers of this article, either the laborers must be idle a part of the time, or a smaller number must be employed in the business. But in the latter case, seve. ral operations must be performed by one person; conse. quently the productiveness of each man's labor would be diminished.

§ 809. In a populous city, one merchant deals exclusively in dry goods, another in hardware, and another in shoes and not unfrequently in one or two commodities only. But in a country village, the amount sold of any one kind of goods would not furnish employ for an establishment. Hence, in such places, every merchant finds it necessary to trade in all kinds of wares and commodities which are wanted by the inhabitants around him.

§ 810. Again, the division of labor is limited by capital. A manufacturer of small capital cannot give employment to as many laborers as one who possesses a large capital; because the greater the number of workmen employed, the greater must be the supply of raw materials to be manufactured, and the greater also must be the daily expenditures in the wages of laborers. And the division of labor will be still more restricted, if the business be of that kind, the products of which do not bring quick returns. For it is evident, that one who disposes of the products of his labor as soon as they are created, or on short credit, requires less capital than one who could not avail himself of the proceeds of his industry oftener than once a year.

§ 811. If in the manufacture of a coach, there were five distinct operations, a perfect division of labor would require the employment of five workmen. Now if coaches were sold on a credit of six months, and if these five workmen should, within that period, produce carriages to the value of $2,000; a capital of this amount would be necessary to conduct an

mand of products upon the division of labor. § 809. Illustrate this effect in the case of merchants. § 810. Can a person of small capital avail himself of the same degree of benefit from the division of labor, as one of large capital? Why not? 811. Explain, by example, the advantages of large capital

establishment of this description, in which the division of labor should be complete. But if the proprietor had a cap. ital of only $1,000, it is evident he could not employ the same number of workmen; some of them must perform several distinct operations; the labor and capital employed would be less productive; and, consequently, the products of this branch of industry must be sold at higher prices.

CHAPTER VII.

Division and Security of Property, an Encouragement to Industry.

§ 812. WITHOUT a division of property, there would be little or no encouragement to industry. By a division of property is meant, that the total amount of the property of a community is divided among its members, so that each has a right to a certain part, which he can call his own, and to which no other person has a right. Without such a divis ion, no man would be induced to lay up or preserve any thing; for men are little disposed to work for what they have no better right to than other men. This is the case with the Indian tribes. The land is held by them in common. No one can call any part of it his own; and no one is stim. ulated to industry. The highest object of each appears to be, to obtain a hut for his shelter, and the scanty fare on which he subsists from day to day. Hence, in every indus. trious community, enjoying the comforts of life, there is a division of property.

§ 813. The security of property also, is indispensable to the encouragement of industry. No community will be prosperous, unless its members be protected in the free en joyment of the fruits of their labor. If what a man produces by his industry might be taken from him by others,

§ 812. What is meant by a division of property? What is its effect upon society? § 813. What evils naturally result from the insecurity

there would be no inducement to labor for any thing beyond a bare subsistence. If in this country the right of property should cease to be protected, men would cease to labor. Industrious and orderly citizens would soon become indolent and vicious, and robbery and plunder would soon reduce all to a common level in poverty and debasement.

§ 814. In a despotic government, the people are usually poor and indolent, because the sovereign ruler has the power to dispose of their property. There is little encouragement to be industrious, since what is gained by labor is liable to be taken from its owner at the pleasure of the despot. Slaves are seldom industrious: the reason is, that what they earn is entirely at the disposal of their masters. They labor only because they are compelled to do so in order to avoid punishment.

§ 815. To protect mankind in the free enjoyment and use of the fruits of their labor, is the end of civil government. And it is the duty of the public authority, to encourage and promote industry by every means consistent with the rights and liberties of the citizens. It ought to secure to every person the free use and employment of his faculties, in such manner as he thinks most advantageous to himself, and te leave each to pursue such calling as he may prefer. It is because these privileges are enjoyed by the people of free governments, that they are more properous and wealthy than those under arbitrary governments.

§ 816. The security of the right of property is equally beneficial to all classes of society; to the poor as well as to the rich. If property were not protected, a sufficient quantity would not accumulate in the hands of any portion of the community, to enable it to give employment to other portions. The poor would be deprived of the means of supplying their necessities, and, consequently, of the ability to accumulate wealth. They have, therefore, an equal interest with the rich, in the security of property; for where this security is enjoyed, the poor may themselves become possessed of wealth.

of the right of property? § 814. What effect has tyranny upon the industry of the people? 815. How is the right of property secured to the members of a community? § 816. In what respect are the

§ 817. The unequal distribution of wealth among the members of a community, is caused, chiefly, by the differ. ent degrees of industry and enconomy prevailing among them. Sometimes, however, men are, by unavoidable or accidental circumstances, either reduced to poverty, or raised to a state of affluence. But these are only exceptions to the general rule. If an equal division of property were to be made among any people enjoying the right of property, inequality would soon reappear, and to the same extent as before. How unwise, then, are those who think the happiness of society would be augmented by making an equal distribution of property!

§ 818. The encouragement of industry requires, farther, that every man be left free to employ his labor and capital as he may choose; and that no unjust preferences be given, nor undue privileges granted, to some individuals over others, in facilitating the acquisition of wealth. Hence, a certain species of exclusive rights, properly called monopolies, are highly objectionable. A monopoly means the sole power or privilege granted to an individual or to a company, to buy and sell specific articles, or to trade with some particular country. Monopolies are ofter rejudicial to the public interest; because they enable these privileged persons to extort from others unreasonable prices, and unjust contri. butions.

§ 819. The same objections do not, however, lie against companies incorporated by public authority. Corpora tions are sometimes created which are of great public utility. Roads, bridges, and canals have been constructed by com. panies authorized to levy contributions upon persons who pass or transport goods on them. These, strictly speaking, are not monopolies; because those who use these passages derive from their use a benefit equal, or more than equal, to the sum paid for such benefit; and also because every person is at berty to use any other public road or channel of transportation.

poor benefited by the security of property? § 817. How is the ine quality of property among mankind to be accounted for? § 818. Are monopolies favorable to industry? What is a monopoly? § 819. Are all incorporations monopolies ? Why are not railroad and canal com

820. Companies incorporated for these and other purposes are by some objected to, because the works which they construct, often prove to their proprietors a source of great wealth. But it must be considered, that such enterprises are attended with great expense and often with risk; and it is proper that those who run great risks should receive liberal encouragement. Many of the most useful works would never have been constructed without such encourage. ment; for no prudent man will invest a large capital in an uncertain undertaking, which does not afford the prospect

of liberal remuneration.

CHAPTER VIII.

The Encouragement of Domestic Industry by Protective Duties.

§ 821. THE object of protective duties has been stated to be the encouragement of domestic industry, in order to render a nation independent of foreign nations for the necessaries of life. But the inquiry whether any government regulations of this kind have a favorable or unfavorable effect upon the productive industry of a nation, comes properly within the province of political economy.

822. Among the numerous subjects embraced in this science, none has been more elaborately discussed by political economists, both writers and public statesmen, than the subject of protective duties; and yet there is none, proba. bly, upon which there exists a more direct contrariety of opinion.

§ 823. Most of the authors of those treatises on political economy which are in general use in this country, and which are also in high repute in other countries, adopt and advocate what is called the system of free trade. They

panies monopolies? § 820. Why is the prospect of a liberal remunera. tion necessary to induce investments in great enterprises?

§ 821 What are protective duties? What is their object? § 823. What is their supposed effect? § 824. Give an example illustra

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