Principles of Political Economy / Abridged with Critical, Bibliographical, and Explanatory Notes, and a Sketch of the History of Political Economy - John Stuart Mill

A Text-Book For Colleges.

New York:

D. Appleton And Company,

1, 3, and 5 Bond Street.

1885

[Preface.]
[Introductory.]
[A Sketch Of The History Of Political Economy.]
[Books For Consultation (From English, French, And German Authors).]
[Preliminary Remarks.]
[Book I. Production.]
[Chapter I. Of The Requisites Of Production.]
[§ 1. The requisites of production.]
[§ 2. The Second Requisite of Production, Labor.]
[§ 3. Of Capital as a Requisite of Production.]
[Chapter II. Of Unproductive Labor.]
[§ 1. Definition of Productive and Unproductive Labor.]
[§ 2. Productive and Unproductive Consumption.]
[§ 3. Distinction Between Labor for the Supply of Productive Consumption and Labor for the Supply of Unproductive Consumption.]
[Chapter III. Of Capital.]
[§ 1. Capital is Wealth Appropriated to Reproductive Employment.]
[§ 2. More Capital Devoted to Production than Actually Employed in it.]
[§ 3. Examination of Cases Illustrative of the Idea of Capital.]
[Chapter IV. Fundamental Propositions Respecting Capital.]
[§ 1. Industry is Limited by Capital.]
[§ 2. Increase of Capital gives Increased Employment to Labor, Without Assignable Bounds.]
[§ 3. Capital is the result of Saving, and all Capital is Consumed.]
[§ 4. Capital is kept up by Perpetual Reproduction, as shown by the Recovery of Countries from Devastation.]
[§ 5. Effects of Defraying Government Expenditure by Loans.]
[§ 6. Demand for Commodities is not Demand for Labor.]
[Chapter V. On Circulating And Fixed Capital.]
[§ 1. Fixed and Circulating Capital.]
[§ 2. Increase of Fixed Capital, when, at the Expense of Circulating, might be Detrimental to the Laborers.]
[§ 3. —This seldom, if ever, occurs.]
[Chapter VI. Of Causes Affecting The Efficiency Of Production.]
[§ 1. General Causes of Superior Productiveness.]
[§ 2. Combination and Division of Labor Increase Productiveness.]
[§ 3. Advantages of Division of Labor.]
[§ 4. Production on a Large and Production on a Small Scale.]
[Chapter VII. Of The Law Of The Increase Of Labor.]
[§ 1. The Law of the Increase of Production Depends on those of Three Elements—Labor. Capital, and Land.]
[§ 2. The Law of Population.]
[§ 3. By what Checks the Increase of Population is Practically Limited.]
[Chapter VIII. Of The Law Of The Increase Of Capital.]
[§ 1. Means for Saving in the Surplus above Necessaries.]
[§ 2. Motive for Saving in the Surplus above Necessaries.]
[§ 3. Examples of Deficiency in the Strength of this Desire.]
[§ 4. Examples of Excess of this Desire.]
[Chapter IX. Of The Law Of The Increase Of Production From Land.]
[§ 1. The Law of Production from the Soil, a Law of Diminishing Return in Proportion to the Increased Application of Labor and Capital.]
[§ 2. Antagonist Principle to the Law of Diminishing Return; the Progress of Improvements in Production.]
[§ 3. —In Railways.]
[§ 4. —In Manufactures.]
[§ 5. Law Holds True of Mining.]
[Chapter X. Consequences Of The Foregoing Laws.]
[§ 1. Remedies for Weakness of the Principle of Accumulation.]
[§ 2. Even where the Desire to Accumulate is Strong, Population must be Kept within the Limits of Population from Land.]
[§ 3. Necessity of Restraining Population not superseded by Free Trade in Food.]
[§ 4. —Nor by Emigration.]
[Book II. Distribution.]
[Chapter I. Of Property.]
[§ 1. Individual Property and its opponents.]
[§ 2. The case for Communism against private property presented.]
[§ 3. The Socialists who appeal to state-help.]
[§ 4. Of various minor schemes, Communistic and Socialistic.]
[§ 5. The Socialist objections to the present order of Society examined.]
[§ 6. Property in land different from property in Movables.]
[Chapter II. Of Wages.]
[§ 1. Of Competition and Custom.]
[§ 2. The Wages-fund, and the Objections to it Considered.]
[§ 3. Examination of some popular Opinions respecting Wages.]
[§ 4. Certain rare Circumstances excepted, High Wages imply Restraints on Population.]
[§ 5. Due Restriction of Population the only Safeguard of a Laboring-Class.]
[Chapter III. Of Remedies For Low Wages.]
[§ 1. A Legal or Customary Minimum of Wages, with a Guarantee of Employment.]
[§ 2. —Would Require as a Condition Legal Measures for Repression of Population.]
[§ 3. Allowances in Aid of Wages and the Standard of Living.]
[§ 4. Grounds for Expecting Improvement in Public Opinion on the Subject of Population.]
[§ 5. Twofold means of Elevating the Habits of the Laboring-People; by Education, and by Foreign and Home Colonization.]
[Chapter IV. Of The Differences Of Wages In Different Employments.]
[§ 1. Differences of Wages Arising from Different Degrees of Attractiveness in Different Employments.]
[§ 2. Differences arising from Natural Monopolies.]
[§ 3. Effect on Wages of the Competition of Persons having other Means of Support.]
[§ 4. Wages of Women, why Lower than those of Men.]
[§ 5. Differences of Wages Arising from Laws, Combinations, or Customs.]
[Chapter V. Of Profits.]
[§ 1. Profits include Interest and Risk; but, correctly speaking, do not include Wages of Superintendence.]
[§ 2. The Minimum of Profits; what produces Variations in the Amount of Profits.]
[§ 3. General Tendency of Profits to an Equality.]
[§ 4. The Cause of the Existence of any Profit; the Advances of Capitalists consist of Wages of Labor.]
[§ 5. The Rate of Profit depends on the Cost of Labor.]
[Chapter VI. Of Rent.]
[§ 1. Rent the Effect of a Natural Monopoly.]
[§ 2. No Land can pay Rent except Land of such Quality or Situation as exists in less Quantity than the Demand.]
[§ 3. The Rent of Land is the Excess of its Return above the Return to the worst Land in Cultivation.]
[§ 4. —Or to the Capital employed in the least advantageous Circumstances.]
[§ 5. Opposing Views of the Law of Rent.]
[§ 6. Rent does not enter into the Cost of Production of Agricultural Produce.]
[Book III. Exchange.]
[Chapter I. Of Value.]
[§ 1. Definitions of Value in Use, Exchange Value, and Price.]
[§ 2. Conditions of Value: Utility, Difficulty of Attainment, and Transferableness.]
[§ 3. Commodities limited in Quantity by the law of Demand and Supply: General working of this Law.]
[§ 4. Miscellaneous Cases falling under this Law.]
[§ 5. Commodities which are Susceptible of Indefinite Multiplication without Increase of Cost. Law of their Value Cost of Production.]
[§ 6. The Value of these Commodities confirm, in the long run, to their Cost of Production through the operation of Demand and Supply.]
[Chapter II. Ultimate Analysis Of Cost Of Production.]
[§ 1. Of Labor, the principal Element in Cost of Production.]
[§ 2. Wages affect Values, only if different in different employments; “non-competing groups.”]
[§ 3. Profits an element in Cost of Production.]
[§ 4. Cost of Production properly represented by sacrifice, or cost, to the Laborer as well as to the Capitalist; the relation of this conception to the Cost of Labor.]
[§ 5. When profits vary from Employment to Employment, or are spread over unequal lengths of Time, they affect Values accordingly.]
[§ 6. Occasional Elements in Cost of Production; taxes and ground-rent.]
[Chapter III. Of Rent, In Its Relation To Value.]
[§ 1. Commodities which are susceptible of indefinite Multiplication, but not without increase of Cost. Law of their Value, Cost of Production in the most unfavorable existing circumstances.]
[§ 2. Such commodities, when Produced in circumstances more favorable, yield a Rent equal to the difference of Cost.]
[§ 3. Rent of Mines and Fisheries and ground-rent of Buildings, and cases of gain analogous to Rent.]
[§ 4. Résumé of the laws of value of each of the three classes of commodities.]
[Chapter IV. Of Money.]
[§ 1. The three functions of Money—a Common Denominator of Value, a Medium of Exchange, a “Standard of Value”.]
[§ 2. Gold and Silver, why fitted for those purposes.]
[§ 3. Money a mere contrivance for facilitating exchanges, which does not affect the laws of value.]
[Chapter V. Of The Value Of Money, As Dependent On Demand And Supply.]
[§ 1. Value of Money, an ambiguous expression.]
[§ 2. The Value of Money depends on its quantity.]
[§ 3. —Together with the Rapidity of Circulation.]
[§ 4. Explanations and Limitations of this Principle.]
[Chapter VI. Of The Value Of Money, As Dependent On Cost Of Production.]
[§ 1. The value of Money, in a state of Freedom, conforms to the value of the Bullion contained in it.]
[§ 2. —Which is determined by the cost of production.]
[§ 3. This law, how related to the principle laid down in the preceding chapter.]
[Chapter VII. Of A Double Standard And Subsidiary Coins.]
[§ 1. Objections to a Double Standard.]
[§ 2. The use of the two metals as money, and the management of Subsidiary Coins.]
[§ 3. The experience of the United States with a double standard from 1792 to 1883.]
[Chapter VIII. Of Credit, As A Substitute For Money.]
[§ 1. Credit not a creation but a Transfer of the means of Production.]
[§ 2. In what manner it assists Production.]
[§ 3. Function of Credit in economizing the use of Money.]
[§ 4. Bills of Exchange.]
[§ 5. Promissory Notes.]
[§ 6. Deposits and Checks.]
[Chapter IX. Influence Of Credit On Prices.]
[§ 1. What acts on prices is Credit, in whatever shape given.]
[§ 2. Credit a purchasing Power, similar to Money.]
[§ 3. Great extensions and contractions of Credit. Phenomena of a commercial crisis analyzed.]
[§ 4. Influence of the different forms of Credit on Prices.]
[§ 5. On what the use of Credit depends.]
[§ 6. What is essential to the idea of Money?]
[Chapter X. Of An Inconvertible Paper Currency.]
[§ 1. What determines the value of an inconvertible paper money?]
[§ 2. If regulated by the price of Bullion, as inconvertible Currency might be safe, but not Expedient.]
[§ 3. Examination of the doctrine that an inconvertible Current is safe, if representing actual Property.]
[§ 4. Experiments with paper Money in the United States.]
[§ 5. Examination of the gain arising from the increase and issue of paper Currency.]
[§ 6. Résumé of the subject of money.]
[Chapter XI. Of Excess Of Supply.]
[§ 1. The theory of a general Over-Supply of Commodities stated.]
[§ 2. The supply of commodities in general can not exceed the power of Purchase.]
[§ 3. There can never be a lack of Demand arising from lack of Desire to Consume.]
[§ 4. Origin and Explanation of the notion of general Over-Supply.]
[Chapter XII. Of Some Peculiar Cases Of Value.]
[§ 1. Values of commodities which have a joint cost of production.]
[§ 2. Values of the different kinds of agricultural produce.]
[Chapter XIII. Of International Trade.]
[§ 1. Cost of Production not a regulator of international values. Extension of the word “international.”]
[§ 2. Interchange of commodities between distance places determined by differences not in their absolute, but in the comparative, costs of production.]
[§ 3. The direct benefits of commerce consist in increased Efficiency of the productive powers of the World.]
[§ 4. —Not in a Vent for exports, nor in the gains of Merchants.]
[§ 5. Indirect benefits of Commerce, Economical and Moral; still greater than the Direct.]
[Chapter XIV. Of International Values.]
[§ 1. The values of imported commodities depend on the Terms of international interchange.]
[§ 2. The values of foreign commodities depend, not upon Cost of Production, but upon Reciprocal Demand and Supply.]
[§ 3. —As illustrated by trade in cloth and linen between England and Germany.]
[§ 4. The conclusion states in the Equation of International Demand.]
[§ 5. The cost to a country of its imports depends not only on the ratio of exchange, but on the efficiency of its labor.]
[Chapter XV. Of Money Considered As An Imported Commodity.]
[§ 1. Money imported on two modes; as a Commodity, and as a medium of Exchange.]
[§ 2. As a commodity, it obeys the same laws of Value as other imported Commodities.]
[Chapter XVI. Of The Foreign Exchanges.]
[§ 1. Money passes from country to country as a Medium of Exchange, through the Exchanges.]
[§ 2. Distinction between Variations in the Exchanges which are self-adjusting and those which can only be rectified through Prices.]
[Chapter XVII. Of The Distribution Of The Precious Metals Through The Commercial World.]
[§ 1. The substitution of money for barter makes no difference in exports and imports, nor in the Law of international Values.]
[§ 2. The preceding Theorem further illustrated.]
[§ 3. The precious metals, as money, are of the same Value, and distribute themselves according to the same Law, with the precious metals as a Commodity.]
[§ 4. International payments entering into the “financial account.”]
[Chapter XVIII. Influence Of The Currency On The Exchanges And On Foreign Trade.]
[§ 1. Variations in the exchange, which originate in the Currency.]
[§ 2. Effect of a sudden increase of a metallic Currency, or of the sudden creation of Bank-Notes or other substitutes for Money.]
[§ 3. Effect of the increase of an inconvertible paper Currency. Real and nominal exchange.]
[Chapter XIX. Of The Rate Of Interest.]
[§ 1. The Rate of Interest depends on the Demand and Supply of Loans.]
[§ 2. Circumstances which Determine the Permanent Demand and Supply of Loans.]
[§ 3. Circumstances which Determine the Fluctuations.]
[§ 4. The Rate of Interest not really Connected with the value of Money, but often confounded with it.]
[§ 5. The Rate of Interest determines the price of land and of Securities.]
[Chapter XX. Of The Competition Of Different Countries In The Same Market.]
[§ 1. Causes which enable one Country to undersell another.]
[§ 2. High wages do not prevent one Country from underselling another.]
[§ 3. Low wages enable a Country to undersell another, when Peculiar to certain branches of Industry.]
[§ 4. —But not when common to All.]
[§ 5. Low profits as affecting the carrying Trade.]
[Chapter XXI. Of Distribution, As Affected By Exchange.]
[§ 1. Exchange and money make no Difference in the law of Wages.]
[§ 2. In the law of Rent.]
[§ 3. —Nor in the law of Profits.]
[Book IV. Influence Of The Progress Of Society On Production And Distribution.]
[Chapter I. Influence Of The Progress Of Industry And Population On Values And Prices.]
[§ 1. Tendency of the progress of society toward increased Command over the powers of Nature; increased Security, and increased Capacity of Co-Operation.]
[§ 2. Tendency to a Decline of the Value and Cost of Production of all Commodities.]
[§ 3. —except the products of Agriculture and Mining, which have a tendency to Rise.]
[§ 4. —that tendency from time to time Counteracted by Improvements in Production.]
[§ 5. Effect of the Progress of Society in moderating fluctuations of Value.]
[Chapter II. Influence Of The Progress Of Industry And Population On Rents, Profits, And Wages.]
[§ 1. Characteristic features of industrial Progress.]
[§ 2. First two cases, Population and Capital increasing, the arts of production stationary.]
[§ 3. The arts of production advancing, capital and population stationary.]
[§ 4. Theoretical results, if all three Elements progressive.]
[§ 5. Practical Results.]
[Chapter III. Of The Tendency Of Profits To A Minimum.]
[§ 1. Different Theories as to the fall of Profits.]
[§ 2. What determines the minimum rate of Profit?]
[§ 3. In old and opulent countries, profits habitually near to the minimum.]
[§ 4. —prevented from reaching it by commercial revulsions.]
[§ 5. —by improvements in Production.]
[§ 6. —by the importation of cheap Necessaries and Implements.]
[§ 7. —by the emigration of Capital.]
[Chapter IV. Consequences Of The Tendency Of Profits To A Minimum, And The Stationary State.]
[§ 1. Abstraction of Capital not necessarily a national loss.]
[§ 2. In opulent countries, the extension of machinery not detrimental but beneficial to Laborers.]
[§ 3. Stationary state of wealth and population dreaded by some writers, but not in itself undesirable.]
[Chapter V. On The Possible Futurity Of The Laboring-Classes.]
[§ 1. The possibility of improvement while Laborers remain merely receivers of Wages.]
[§ 2.—through small holdings, by which the landlord's gain is shared.]
[§ 3. —through co-operation, by which the manager's wages are shared.]
[§ 4. Distributive Co-operation.]
[§ 5. Productive Co-Operation.]
[§ 6. Industrial Partnership.]
[§ 7. People's Banks.]
[Book V. On The Influence Of Government.]
[Chapter I. On The General Principles Of Taxation.]
[§ 1. Four fundamental rules of Taxation.]
[§ 2. Grounds of the principle of Equality of Taxation.]
[§ 3. Should the same percentage be levied on all amounts of Income?]
[§ 4. Should the same percentage be levied on Perpetual and on Terminable Incomes?]
[§ 5. The increase of the rent of land from natural causes a fit subject of peculiar Taxation.]
[§ 6. Taxes falling on Capital not necessarily objectionable.]
[Chapter II. Of Direct Taxes.]
[§ 1. Direct taxes either on income or expenditure.]
[§ 2. Taxes on rent.]
[§ 3. —on profits.]
[§ 4. —on Wages.]
[§ 5. —on Income.]
[§ 6. A House-Tax.]
[Chapter III. Of Taxes On Commodities, Or Indirect Taxes.]
[§ 1. A Tax on all commodities would fall on Profits.]
[§ 2. Taxes on particular commodities fall on the consumer.]
[§ 3. Peculiar effects of taxes on Necessaries.]
[§ 4. —how modified by the tendency of profits to a minimum.]
[§ 5. Effects of discriminating Duties.]
[§ 6. Effects produced on international Exchange by Duties on Exports and on Imports.]
[Chapter IV. Comparison Between Direct And Indirect Taxation.]
[§ 1. Arguments for and against direct Taxation.]
[§ 2. What forms of indirect taxation are most eligible?]
[§ 3. Practical rules for indirect taxation.]
[§ 4. Taxation systems of the United States and other Countries.]
[§ 5. A Résumé of the general principles of taxation.]
[Chapter V. Of A National Debt.]
[§ 1. Is it desirable to defray extraordinary public expenses by loans?]
[§ 2. Not desirable to redeem a national Debt by a general Contribution.]
[§ 3. In what cases desirable to maintain a surplus revenue for the redemption of Debt.]
[Chapter VI. Of An Interference Of Government Grounded On Erroneous Theories.]
[§ 1. The doctrine of Protection to Native Industry.]
[§ 2. —had its origin in the Mercantile System.]
[§ 3. —supported by pleas of national subsistence and national defense.]
[§ 4. —on the ground of encouraging young industries; colonial policy.]
[§ 5. —on the ground of high wages.]
[§ 6. —on the ground of creating a diversity of industries.]
[§ 7. —on the ground that it lowers prices.]
[Appendix I. Bibliographies.]
[Appendix II. Examination Questions.]
[Footnotes]

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