Imatges de pàgina
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as food or coals; others are consumed more slowly, but are ultimately destroyed by use, as clothes or furniture: but whatever is the durability of the thing pro

A man is rich or poor according to his power of obtaining the various sources of enjoyment which the skill and industry of others produce; and the aggregate of such permanent sources of enjoyment constitutes the wealth of nations. Whatever labour or expenditure, therefore, may be devoted to the increase or continuance of those sources of enjoyment, must be deemed productive: and labour and expenditure, which have no such tendency, must be viewed as unproductive.

rited capital be not squandered or wasted, its annual interest alone affords the means of enormous accumulation; while the rent of land, the profits of trade, and the wages of labour, are continually supply-duced, its sole use is the enjoyment of man. ing new funds for further production and accumulation. The second point may be made clearer by an illustration. Let us suppose one hundred men, each saving 100l. annually out of their profits. Their aggregate accumulations would amount to 10,000l. But suppose one thousand men, with equal capitals, but unable, on account of a lower rate of profit, to save more than 50l. a year; their aggregate accumulations would amount to 50,000l. In both cases they would have maintained themselves and their families out of their profits, and have paid the wages of all the labour required in their business; after which their savings remain available for increased production, and for the employment of a larger quantity of labour. This example falls far short of the circumstances of Great Britain, for the number of small capitalists is even more extraordinary than the enormous capitals possessed by a comparatively small number of wealthy men; and their annual additions to the national capital are of incalculable amount.

The conclusions to which we are led by these inquiries, are—that a high rate of profit is favourable to accumulation; that rich and populous countries are denied this advantage; that if they enjoyed it, their capital would continue to increase more rapidly than it does, in fact, increase; but that, under ordinarily favourable circumstances, the masses of inherited capital and the aggregate savings of vast numbers of capitalists still facilitate accumulation in a greater ratio than the increase of population, which a high state of civilization has a tendency to check. [POPULATION.]

II. The consideration of the application and uses of capital will be disembarrassed of much complexity by explaining, at the outset, the distinction raised by political economists between what is called productive and unproductive labour and expenditure Tþaard shirt' prvulis e nas mediately destroyed by the use of them,

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The most scientific classification of productive and unproductive descriptions of labour and expenditure which we have met with is that of Mr. Mill. Accord ing to his definition the following are always productive :-When their "direct object or effect is the creation of some material product useful or agreeable to mankind," or "to endow human or other animated beings with faculties or qualities useful or agreeable to mankind, and possessing exchangeable value: "which, without having for their direct object the creation of any useful material product, or bodily or mental faculty or quality, yet tend indirectly to promote one or other of those ends, and are exerted or incurred solely for that purpose." Labour and expenditure are said to be unproductive when they are "directly or exclusively for the purpose of enjoyment, and not calling into existence anything, whether substance or quality, but such as begins and perishes in the enjoyment;" or when they are exerted or incurred "uselessly or in pure waste, and yielding neither direct enjoyment nor permanent sources of enjoyment." (Essays on Unset tled Questions of Political Economy, Essay III.)

Examples of these several classes would transgress our limits, but a study of the above definitions may serve to correct an erroneous impression, that no expenditureciative."uct Prodfiction. The most common form in which this

error appears, is in a comparison of the ordinary expenditure of a gentleman living upon his income, with that of a person employing workmen in a productive trade. It is hastily assumed that the expenditure of the former is unproductive, but it is, in fact, of a mixed character. His servants, for instance, perform many labours of a productive character. His cook prepares food for his table, and thus adds the last process of a manufacture. In point of productiveness it is impossible to distinguish this necessary labour from that of a butcher or baker. His gardener is an agriculturist and directly productive. The upholsterer who makes his furniture is productive: and in what manner is the labour of his housemaid less productive, who keeps it fit for use? In the same manner, why is the labour of his butler less productive than that of the silversmith; or of his coachman than that of the coach-builder and the breeder of horses? All are engaged, alike, in increasing or continuing permanent sources of enjoyment. But the most important economical use of domestic servants is the division of labour which it creates. While they are engaged upon household services their employer is free to follow his own more important duties-the management of his estates, the investment of his capital, or the labours of his profession. It is not, therefore, in the employment of servants that expenditure is unproductively incurred, but in the employment of excessive numbers; for then they are used directly and exclusively for the purpose of an enjoyment "which begins and perishes in the enjoyment."

We will now briefly examine the nature of productive and unproductive consumption of perishable articles, and the effects of consumption, generally, upon production. Those who produce anything have one object only in devoting their labour to it-that of ultimately consuming the thing itself, or its equivalent, in the form of some other product of labour. If the exchange be made in goods, each consumer is obviously also a producer, and adds to the common stock of enjoyment as much as he withdraws from it. But money is the representative of the

products of labour, and if given in exchange for them, the character of the transaction would appear to be the same as the direct interchange of the products themselves. In the case of productive labourers, it would be admitted to be precisely the same; but a distinction is taken when the labour of the consumer is itself unproductive. It is true that he offers the results of past labour, but his immediate end in consuming is enjoyment. He parts with his money, which is an equivalent to the seller, but he produces no new source of enjoyment for society. But the consumption of a productive labourer may also be unproductive. Such part of his consumption as is necessary to keep him in health, to render him perfectly fit, in mind and body, for his employment, and to rear his children suitably, is all clearly productive. If any residue remain, and he spend it upon immediate enjoyment-such as spirits, for example, which vanish with the enjoyment -that portion of his consumption is unproductive.

It must not be imagined, however, that the only result of money spent upon unproductive labour, or of unproductive consumption, is necessarily waste. The results of a man's labour may be unproductive to society, but a great part of his gains may be productively expended: and again, the maker and seller of commodities unproductively consumed are productive, and their profits may be productively applied. The distiller and the publican are productive labourers, but the consumption of spirits is itself unproductive.

We are now enabled to confine our attention to the uses of capital, as applied to its most important end, the employment and aid of productive industry. Its first and most important use is the division of employments, which, though necessary for any advance in arts, is impracticable without some previous accu mulation of capital. Until there is a fund for employing labour, every man's business is the seeking of his own daily food; but as soon as the capital of another secures that for him, his labour is available for the general good. The more capital is accumulated, the more extended are the facilities for indefinite distribution

of employments, according to the wants | duce results amounting in value to 110l., of the community. but the same sum expended upon any machinery calculated to last for five years would be equally well repaid by a return of 30l. a year; being 101. for profit upon the outlay, and 201. for the annual wear and tear of the capital.

Capital may be applied either directly in the employment of labour, or directly in aid of labour: it may be spent in the food and clothes of labourers, or in tools and other auxiliary machinery, to assist their labour and increase its productiveness. The former is usually termed circulating capital, and the latter fixed capital. Both are equally essential to the progress of the arts and national wealth, and are used in combination; but the effects produced by each are not always the same. If a farmer employs three labourers, and his capital is afterwards doubled, it is a very important question whether he expend his increased stock in the payment of three additional labourers, or in providing auxiliary machinery to increase the power of the three labourers already employed. In the latter case we may be assured that his machinery will do the work of more than three men; for otherwise no ingenuity would have been applied to its contrivance. It is truly said by Professor Jones, that "when, instead of using their capital to support fresh labourers in any art, (a people) prefer expending an equal amount of capital in some shape in which it is assistant to the labour already employed in that art, we may conclude with perfect certainty, that the efficiency of human industry has increased relatively to the amount of capital employed." (Distribution of Wealth, p. 222.) The same able writer has pointed out another difference in the results of auxiliary capital, viz. "that when a given quantity of additional capital is applied, in the results of past labour, to assist the labourers actually employed, a less annual return will suffice to make the employment of such capital profitable, and therefore permanently practicable, than if the same quantity of fresh capital were expended in the support of additional labourers." (Ibid. p. 224.) This circumstance arises from the greater durability of the fixed capital, which may not require renewal for several years, while the direct expenditure on labour must be renewed annually. Thus 1007. spent in labour to cause a profit of 10 per cent. must pro

Not only does capital facilitate divisions of employment, and increase the productiveness of industry, by which the enjoyments of man are multiplied, but it actually produces many sources of power and enjoyment, which without it could have no existence. It is the foundation of all social progress and civilization, for without it man is but a savage. It must precede his mental culture, for until it exists his noble endowments are idle or misemployed. Without it, his mind is a slave to the wants of his body: with it, the strength of others becomes subservient to his will, and while he directs it to increase the physical enjoyments of his race, his intellect ranges beyond the common necessities of man, and aspires to wisdom-to government and laws-to arts and sciences. In all the nations of the world riches have preceded and introduced intellectual superiority. Connected with the progress of the human intellect, the printing press is an apt example of the creations, so to speak, effected by capital. No dexterity of fingers, no ingenuity of contrivance, unaided by the results of former labour, could multiply copies of books. Without abundance of types and frames and other appliances of the art, secured by capital, the bare invention of printing would be useless; and its wonderful efficacy, in the present age, may be ascribed as much to the resources of capital as to human ingenuity. In numberless other processes of art capital enables work to be executed which could not otherwise be performed at all, or enables it to be performed better and in less time. In all ways it multiplies indefinitely the varied sources of enjoyment that are offered to civilized man; but never more conspicuously than when it stimulates and encourages invention. Look at the railways of Great Britain. What created them? The abounding capital of the people, which, overflowing

the ordinary channels of investments, | nomy and Taxation; M'Culloch, Princifound a new channel for itself. In ten years the land was traversed by iron roads, and millions of people were borne along by steam with the speed of the wind.

This rapid sketch of the uses of capital will not be complete without its moral. The paramount value of capital to the prosperity of a nation should never be overlooked by a government. Unwise laws, restrictions upon commerce, improvident taxation, which are unfavourable to its growth, should be dreaded as poison to the sources of national wealth and happiness. No class is the better for its decay or retarded growth: all derive benefit from its increase. And above all, when population is rapidly increasing, let a government beware how it interferes with the natural growth of capital, lest the fund for the employment of labour should fail, and the numbers of the people, instead of being an instrument of national power, should become the unhappy cause of its decay. The material happiness of a people is greatest when the national wealth is increasing more rapidly than the population; when the demand for labour is ever in advance of the supply. It is then also that a people, being contented, are most easily governed; and that taxes are most productive and raised with least difficulty. But while the natural growth of capital should not be interfered with by restrictions, the opposite error of forcing it into particular channels should equally be avoided. Industry requires from government nothing but freedom for its exercise; and capital will then find its own way into the most productive employments; for its genius is more fertile than that of statesmen, and its energy is greatest when left to itself. The best means of aiding its spontaneous development are a liberal encouragement of science and the arts, and a judicious system of popular education and industrial training; for as " knowledge is power," so is it at once the best of all riches and the most efficient producer of wealth.

ples of Political Economy; Professor Jones On the Distribution of Weautn Essays on some Unsettled Questions of Po. litical Economy, by John Stuart Mill.)

CAPTAIN (from the French capitaine; in Italian, capitano: both words are from the Latin caput, a head), in the naval service, is an officer who has the command of a ship of war, and, in the army, is one who commands a troop of cavalry or a company of infantry.

In military affairs the title of captain seems to have been originally applied, both in France and England, like that of General at present, to officers who were placed at the head of armies or of their principal divisions, or to the governors of fortified places. Père Daniel relates that it was at one time given to every military man of noble birth; and adds that, in the sense in which it is at present used, it originated when the French kings gave commission to certain nobles to raise companies of men, in proof of which he quotes an ordonnance of Charles V. This must have been before 1380, in which year that king died. In the English service the denomination of captain, in the same sense, appears to have been introduced about the reign of Henry VII., when it was borne by the officers commanding the yecmen of the guard, and the band of gentlemen pensioners. (Grose's Military Antiquities, vol. i.)

The established price of a captain's commission is, in the Life Guards, 3500l.; in the Dragoons, 3225l.; in the Foot Guards, with the rank of lieutenantcolonel, 48007.; in the infantry of the line, 1800l.; and no officer can be promoted to the rank of captain until he has been two years an effective subaltern. The full pay of a captain in the Life and Foot Guards is 15s. per day; in the Dragoons 14s. 7d.; and in the Infantry of the Line is 11s. 7d. per day.

The duty of a captain is one of considerable importance, since that officer is responsible for the efficiency of his company in every qualification by which it (Smith's Wealth of Nations, Book II. is rendered fit for service; he has to ch. 3, with Notes by M'Culloch and attend all parades; to see that the clothWakefield; Ricardo On Political Eco-ing, arms, &c. of the men are in good

order, and that their pay and allowances | titles of captains. Thus there is a captain are duly supplied. When the army is of the forecastle, a captain of the hold, encamped, one captain of each regiment captains of the main and fore tops, of the is appointed as captain for the day; his mast, and of the afterguard. duty is to superintend the camp of his regiment, to attend the parading of the regimental guards, to visit the hospital, to cause the roll to be called frequently and at uncertain hours, and to report everything_extraordinary to the commanding officer.

A high degree of responsibility rests upon the commander of a ship of war, since to him is committed the care of a numerous crew, with whom he has to encounter the dangers of the ocean and the chances of battle. And as the floating fortress with its costly artillery and stores, when transferred to the enemy, increases by so much his naval strength, it is evident that nothing but utter inability to prevent him from getting possession can justify the commander in surrendering. In the old French service the captain was prohibited from abandoning his ship under pain of death; and in action he was bound under the same penalty to defend it to the last extremity he was even to blow it up rather than suffer it to fall into the enemy's power.

The pay of a captain in the navy varies with the rate of the ship, from 617. 78. per month for a first-rate, to 261. 17s. for a sixth-rate. Commanders of sloops have 231., and a captain of marines 14l. 14s. per month.

From the book of general regulations and orders it appears that lieutenants of his majesty's ships rank with captains of the army. Commanders (by courtesy entitled captains) rank with majors. Captains (formerly designated post-captains) with lieutenant-colonels; but after three years from the dates of their commissions they rank with full colonels.

The rank of post-captain was that at which when the commander of a ship of war had arrived, his subsequent promotion to a flag took place only in consequence of seniority, as colonels of the army obtain promotion to the rank of general officers. Such captain was then said to be posted; but this title does not

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CARDINAL (Italian, Cardinale), the highest dignity in the Roman church and court next to the pope. The cardinals are the electors of the pope, and his councillors. The Latin word Cardinalis is used by Vitruvius in his description of doors. The word is derived from the Latin cardo, a hinge. The word was applied by the Latin grammarians to the cardinal numbers as we now call them, one, two, and so on. We also speak of the cardinal virtues, and the cardinal points, North, East, South, and West. The term Cardo was applied by the Romans, in their system of land-measurement, to a meridian line drawn from south to north. (Hyginus, in Goesii Agrimensores, p. 150.) The Roman Cardinals, says Richelet, are so called, because they are the hinges or points which support the church (Dictionnaire).

In the early times of the church this title was given to the incumbents of the parishes of the city of Rome, and also of other great cities. There were also cardinal deacons, who had the charge of the hospitals for the poor, and who ranked above the other deacons. The cardinal priests of Rome attended the pope on solemn occasions. Leo IV., in the council of Rome, 853, styled them "presbyteros sui cardinis." Afterwards the title of cardinal was given also to the seven bishops suburbicarii, or suffragan of the pope, who took their title from places in the neighbourhood of Rome, namely, Ostia, Porto, Santa Rufina, Sabina, Palestrina, Albano, and Frascati. These bishops were called hebdomadarii, because they attended the pope for a week each in his turn. The cardinals took part with the rest of the Roman clergy in the election of the pope, who was often chosen from among their number. About the beginning of the twelfth century, the popes having organized a regular court, bestowed the rank of cardinal priest or deacon on any individual of the clergy or even laity that they thought proper, whether Roman or foreign, and gave to each the title of some particular church of

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