way enhance its fertility. There is a great deal of this kind of effort: perhaps much is inevitable. It is waste, not labor. But it may be urged, Suppose a man works for months preparing ground, planting, and cultivating till his crop is nearly ready; but a flood comes, and carries all off from before his eyes, and leaves him nothing to show for what he has done. Was there not labor bestowed? Certainly; and the labor was productive, and it had its reward, not the less that each individual effort did not carry off its result in a complete form at the time, but waited for the harvest. Value was produced at every stroke of the shovel - palpable, appreciable, marketable value-just as truly as if it had been taken home at the close of each day. Labor had been there, and received its recompense; but the flood made a robbery of it all. Not the less was there labor, not the less was there production, not the less was there value.

In this view, we see that all labor is productive.

But it may be asked, Does it make no difference to the community what objects of labor are selected, and by what means these objects are attained? Certainly; and, in this inquiry, we reach the field of economic culture, which is that education of the desires, that instruction of efforts, and that use of satisfactions, which will unite to bring out desires, efforts, and satisfactions in ever-increasing circles of industry. Here arise, properly, all the important questions which were formerly discussed under the head of productive or unproductive labor.

Now it can be asked with effect, whether the opera-dancer, the physician, and the churchman are useful; whether they expand the desires, instruct the efforts, and dispose the satisfactions of men to a constantly enlarging industry.

Let us inquire closely. It will be readily granted, that these and other similar classes may have influence upon, or power in, production in two forms, either primary or secondary.

Primary, where a direct part is taken, an active agency maintained, in the creation of values.

Secondary, when an effect is produced, which, by modifying human capacities or desires, however indirectly and in whatever degree, brings about ultimately a greater creation of values.

For example: that great class which, in various offices, maintains civil justice and order, has indisputably a primary influence or power by rendering possible the present creation of values, and by watching over their keeping and transfer. Government and the law are great agencies of production. Without them, however desirous people might be of wealth, and however capable of effort, little or nothing could be produced. Robbery and violence would scatter and destroy what already exists, and a universal waste would speedily follow. But they have, also, a secondary power or influence; for it is found that the maintenance of peace and property rights awakens new and increasing desires, widens the horizon of ambition, and stimulates everywhere to honest industry. Civil security is an education for wealth, an economic culture.

Then that great class which teaches has both a primary and a secondary power and influence,— primary, in that it gives instruction to present labor, as it is struggling to-day with the difficulties of production; explains chemical and mechanical laws; and establishes the alphabet, the written letter, electric communication, the rules of book-keeping, and the art of navigation: secondary, in that the progress of mind brings it infallibly to higher stations of aspiration and activity.

The work of the physician is almost entirely of the primary character. He saves the lives of producers, and preserves their strength to labor. This secondary power or influence of his profession, if such exists, is distant and trivial.

On the other hand, we shall add nothing to the dignity of

the churchman or priest or minister, by attributing to him any direct power in production. Yet his part may be no less important because secondary. The influence of religion is hardly less marked than that of race, in the creation of values. If its influence tend to improve the morals, and thus aid in the preservation of public order; to elevate the mind, and thus give it nobler and higher aspirations, and a better appreciation of the right uses of wealth, it must be a great auxiliary to its production.

That class of agencies which we have designated as primary comes within the view of production. The class of secondary agencies belongs to the department of consump tion, which treats of the use of wealth, so that it may bring forth more wealth.

Here, in economic culture, is the point at which production, passing by exchange and distribution, comes into relation with consumption. In pure theory, production and consumption complete the economic good, which is - reproduction. The harvest which is gained in production is sown or wasted, as the case may be, in consumption, to re-appear in a more abounding harvest, or in barrenness, in reproduction. Practically, however, we have to introduce the laws of exchange and distribution, as the agencies by which production is finished, and consumption made possible.

We have used metaphors drawn from the chemistry of agriculture to express the significance of economic culture. To illustrate from mechanics, we should say that it treats of the re-action of labor. No force can re-act except from something external. Labor is a force directed to an object. The energy with which it is to move in a new direction will depend on the temper and shape of the body on which it impinges. Reproduction, then, is the rebound of production from consumption.

If labor expends itself on objects that do not stimulate to further efforts or serve as instruments to further produc

tion, but rather debauch the energies and corrupt the faculties, it is evident that reproduction will be lessened and debased, and the whole course of industry be downward.

If, on the contrary, labor expends itself on objects that present fresh and urgent desires, and excite to renewed activities, it is evident that the course of production is upward; and the people will rise economically, with a rapidity and force, such as signalized the career, in the fourteenth century, of Florence; in the seventeenth, of Holland; in the eighteenth, of England; in the nineteenth, of the United States.

BOOK III.

EXCHANGE.

PART FIRST.-TRADE.

CHAPTER I.

THE PRINCIPLES OF TRADE.

EXCHANGE has its origin from the division of labor; and the further that division is carried, the greater extension is given to exchange. If each man supplied his own wants by his own work, trade could not exist. But, so far from this being the rule of industrial society, the article to which a man devotes all his labor may be such as he never used, perhaps never saw used.

Exchange is that agency which brings a man what he wants for what he does not want, which furnishes gratification for his desires out of objects which are adapted to gratify few or none of his desires.

As the division of labor begins in the most savage state, so exchange is known there. One goes into the woods for venison; another, to the river for fish.

At night, they

divide. Half the fish is given for half the meat. Perhaps other parties are introduced. Instead of exchanging the whole of their fish or venison, each of the two gives a portion for a trinket, and another portion to the medicine man for herbs which he alone knows how to collect. We have here brought in exchange, not only in regard to the plain necessaries of life, but to the services of science and to luxuries. Yet all this occurs in the daily life of the savage

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