Then the first step of elimination (as Bain further observes) is "to analyse the situation mentally," in the light of analogies suggested by our experience or previous knowledge. Dew, for example, is moisture formed upon the surface of bodies from no apparent source. But two possible sources are easily suggested by common experience: is it deposited from the air, like the moisture upon a mirror when we breathe upon it; or does it exude from the bodies themselves, like gum or turpentine? Or, again, as to a fall of prices, a little experience in business, or knowledge of Economics, readily suggests two possible explanations: either cheaper production in making goods or carrying them; or a scarcity of that in which the purchasing power of the chief commercial nations is directly expressed, namely, gold.
Having thus analysed the situation and considered the possibility of one, two, three, or more possible causes, we fix upon one of them for further investigation; that is to say, we frame an hypothesis that this is the cause. When an effect is given to find its cause, an inquirer nearly always begins his investigations by thus framing an hypothesis as to the cause.
The next step is to try to verify this Hypothesis. This we may sometimes do by varying the circumstances of the phenomenon, according to the Canons of direct Inductive Proof to be discussed in the next chapter; that is to say, by observing or experimenting in such a way as to get rid of or eliminate the obscuring or disturbing conditions. Thus, to find out which flower in a garden gives a certain scent, it is usually enough to rely on observation, going up to the likely flowers one after the other and smelling them: at close quarters, the greater relative intensity of the scent is sufficiently decisive. Or we may resort to a sort of experiment, plucking a likely flower, as to which we frame the hypothesis (this is the cause), and carrying it to some place where the air is free from conflicting odours. Should observation or experiment disprove our first hypothesis we try a second; and so on until we succeed, or exhaust the known possibilities.
But if the phenomenon is so complex and extensive as a continuous fall of prices, direct observation or experiment is a useless or impossible method; and we must then resort to Deduction; that is, to indirect Induction. If, for example, we take the hypothesis that the fall is due to a scarcity of gold, we must show that there is a scarcity; what effect such a scarcity may be expected to have upon prices from the acknowledged laws of prices, and from the analogy of other cases of an expanded or restricted currency; that this expectation agrees with the statistics of recent commerce: and finally, that the alternative hypothesis that the fall is due to cheaper production is not true; either because there has not been a sufficient cheapening of general production; or because, if there has been, the results to be rationally expected from it are not such as to agree with the statistics of recent commerce. ([Ch. xviii.])
But now suppose that, a phenomenon having been suggested for explanation, we are unable at the time to think of any cause—to frame any hypothesis about it; we must then wait for the phenomenon to occur again, and, once more observing its course and accompaniments and trying to recall its antecedents, do our best to conceive an hypothesis, and proceed as before. Thus, in the first great epidemic of influenza, some doctors traced it to a deluge in China, others to a volcanic eruption near Java; some thought it a mild form of Asiatic plague, and others caught a specific microbe. As the disease often recurred, there were fresh opportunities of framing hypotheses; and the microbe was identified.
Again, the investigation may take a different form: given a supposed Cause to find its Effect; e.g., a new chemical element, to find what compounds it forms with other elements; or, the spots on the sun—have they any influence upon our weather?
Here, if the given cause be under control, as a new element may be, it is possible to try experiments with it according to the Canons of Inductive Proof. The inquirer may form some hypothesis or expectation as to the effects, to guide his observation of them, but will be careful not to hold his expectation so confidently as to falsify his observation of what actually happens.
But if the cause be, like the sun-spots, not under control, the inquirer will watch on all sides what events follow their appearance and development; he must watch for consequences of the new cause he is studying in many different circumstances, that his observations may satisfy the canons of proof. But he will also resort for guidance to deduction; arguing from the nature of the cause, if anything is known of its nature, what consequences may be expected, and comparing the results of this deduction with any consequent which he suspects to be connected with the cause. And if the results of deduction and observation agree, he will still consider whether the facts observed may not be due to some other cause.
A cause, however, may be under control and yet be too dangerous to experiment with; such as the effects of a poison—though, if too dangerous to experiment with upon man, it may be tried upon animals; or such as a proposed change of the constitution by legislation; or even some minor Act of Parliament, for altering the Poor Law, or regulating the hours of labour. Here the first step must be deductive. We must ask what consequences are to be expected from the nature of the change (comparing it with similar changes), and from the laws of the special circumstances in which it is to operate? And sometimes we may partially verify our deduction by trying experiments upon a small scale or in a mild form. There are conflicting deductions as to the probable effect of giving Home Rule to Ireland; and experiments have been made in more or less similar cases, as in the Colonies and in some foreign countries. As to the proposal to make eight hours the legal limit of a day's labour in all trades, we have all tried to forecast the consequences of this; and by way of verification we might begin with nine hours; or we might induce some other country to try the experiment first. Still, no verification by experiments on a small scale, or in a mild form, or in somewhat similar yet different circumstances, can be considered logically conclusive. What proofs are conclusive we shall see in the following chapters.