promote the general prosperity of the country, is the increase of capital. But it is not in the power of the legislature to promote this end in any other way than by providing for the security of property, any attempts to interfere either with the disposal of capital or with the nature and extent of expenditure, are equally discouraging to industry. CAROLINE. Whoever, I conceive, augments his capital by savings from his income, increases the general stock of subsistence for the labouring classes; whilst he who spends part of his capital diminishes that stock of subsistence, and consequently the means of employing the labouring classes in its reproduction. Every man ought, therefore, to consider it as a moral duty, independently of his private interest, to keep his expenditure so far within the limits of his income that he may be enabled every year to make some addition to his capital. MRS. B. And the question what that addition should be, must depend entirely upon the extent of his income, and his motives for expenditure. We can only point out illiberal parsimony, and extravagant prodigality as extremes to be avoided; there are so many gradations in the scale between them, that every man must draw the line for himself, accord ing to the dictates of his good sense and his conscience, and in so doing should consult, perhaps, the moral philosopher as well as the political economist. He who has a large family to maintain and establish in the world, though more strict economy be required of him, cannot be expected to make savings equal to those of a man of a similar income, who has not the same calls for expenditure. But however large a man's income may be, he has no apology for neglect of economy. Economy is a virtue incumbent on all; a rich man may have sufficient motives to authorise a liberal expenditure, but he can have none for negligence and waste; and however immaterial to himself the loss which waste occasions, he should consider it as so much taken from that fund which provides maintenance and employment for the poor. INDEX. A ACCUMULATION of wealth, 89. Adulteration of the coin of the country, 348. its effects on wages, 349. has been adopted in almost all countries, 550. Agriculture, introduction of, 19. 43. 181. whether preferable to other branches of industry, 183. most advantageous to newly settled countries, 189. Metayer system of, 253. state of, in France, 255. Agricultural produce, high price of, 203. not susceptible of unlimited increase, 204. causes of its high price, 209. causes which lower its price, 211. high price of, necessary to proportion the consump- the first commodity which a country exports, 392. 415. America, increase of population in, 145. exports corn, 392. agriculture of, 415. effects of its discovery on the industry of Europe, 340. America, the produce of its mines, how distributed through- Annuitants, affected by the exchangeable value of money, 331. Balance of trade, 427. B popular error respecting it, 439. Banks, saving, advantages of, 172. of Amsterdam, 355. of England, 357. restriction of paying in specie, 357. Barter, origin of, 67. Benefit clubs, or friendly societies, advantages resulting Bentham's Théorie de Legislation, extract from, on the effects Bills of Exchange, their use in foreign commerce, 425. Blackstone's Commentaries, extract from, on civil liberty, 45. Buchanan's edition of Adam Smith's passage from, on price, 317. C. Canals, advantages arising from, 380. 382. Capital, origin of, 89. employment of, 92. 107. profits derived from, 95. 99. necessary for all productive enterprises, 100. 500. definition of, 119. of a country, 118. 446. effect of its increase on profit and wages, 127. effect of its diminution, 130. increase of, in Europe, 150. |