REVIEW.

Otago Daily Times, Issue 672, 12 February 1864, Page 5

REVIEW.

" Plutology; or, the Theory of the Efforts to Supply Human Wants." W. G. Hearn, LL.D., Professor of History and Political Economy in the University of Melbourne.

The status of a country in civilisation is not to be measured by its material wealth so much as by its literature. It is not the man who accumulates a colossal fortune who gives direction to the mind and form to the character of community. It is the philosopher in his study—the poet i» his imagery—the painter in his delineation of nature

the sculptor in his forms of beauty—the journalist in his records of the passing and the past —the editor from his chair—who present themes for thought and observation, and motives to mental effort—who rouse and refine and elevate mankind. It was, therefore, with feelings of pleasure that we had placed in our hands the Colonial work, whose title stands at the head of this article, written, printed, and published in Melbourne. We hail it as the first instalment of the future triumphs of these Southern lands in science and philosophy. We were, however, somewhat startled at the name given to the science an which the author professes to treat. It came in such a questionable shape that it required some raiting up of our almost forgotten classic lore to attach a definite idea to it even with the aid of the free translation appen ed, •' The theory of the efforts to satisfy human wants;" and it was with a feeling of relief that we perused the introductory chapter, and found that the learned professor had adopted the title, as conveyingl a truer idea of the object of the science, than the old fashioned term " Political Economy." : We do not undervalue nomenclature in science. It is. an invaluable aid to a minute acquaintance with it. The vast advances made in chemistry within the past thirty years are much indebted to the fixed and determinate ideas implied in the prefixes and affixes to the various roots employed; and he will confer benefit of no ordinary value who introduces similar precision and definitenese into the nomenclature of Botany, and other equally confused sciences. But nomenclature in science is one thing, and the name of a science is another. The reasons adduced by the Professcr for his departure from the generally accepted term, "Political Economy" savour somewhat of pedantry. However familiar to him and to others equally learned may be the derivation of the words, to the generality of intelligent readers, both " Political Economy" and the word substituted by himself for it, convey an uncertain sound. The dikos and nomos are no more comprehended than the ploutos on which he founds the word Plutology. There need nob, therefore, be any apprehension that a student would enter upon the investigation of the science with preconceived ideas of its natur^SJpd tendency drawn from its name, for we ventarato assert that few but those acquainted with its principles would detect such a quasi misnomer. The term Political Economy, Dr. Hearn argues, "seems to indicate that the Government ought to direct and control the industry of its subjects in the same manner as a great mill owner or contractor now directs and controls the industry of his mill hands or his navvies" Now even to the learned, the nomos, or regulation or law, and oticos, the household or family, do not necessarily convey such an idea. To our minds they are suggestive, when combined . with the term "Political," of those principles, which a Government should adopt for the benefit of the community, while the ploutos, when combined with logo 3, gives only the flbtion of an essay on becoming rich. The mere name of a science does not alter its principles,' a rose by any other name would smell as sweet,'" We have no objection to the title given by Dr. Hearn to his work; our dissent is from the reasons he assigns for the change.

The work itself i 3 a very careful inquiry into the nature and character of human wants; of those social and industrial means by which they are supplied; and the means by which efficiency may be given- to human effort. It is divided into twenty-four chapters, each of which is a minute and elaborate investigation of a proposition involved in the const; tution^ of man in reference to the circumstances in which he is placed. This mode of treatment is not altogether original. M. Bastiat partially adopted it in his investigations into Economic Science; and the late Mr Buckle in his endeavors to generalise the events of history so as to deduce from them principles of Government,, indicated this course. Perhaps in historic generalisations the mixing up of the metaphysical with the material is unavoidable, but we much doubt the advantage to political economy of such questionable combinations. Ifrprofesses to deal with physical circumstances as they are; with the hard realities of life; with the mode by which man may grapple with and overcome difficulties ; with the social organisations by which he may subdue nature; and trenches no further upon the metaphysisal than defining the law of right and wrong; nor upon the duties of Governments than to show how under given circumstances they may compel the observance of that'f profound maxim, which involves alike the rights of liberty and of property, " Do unto all, as you would have others do unto you." Beyond this it prohibits Governments to Tneddle ; for if they pass the boundary they institute the breaking of that law. Sere then appears to be the natural limit of the science, and to go beyond it as Dr Hearn has done, is to forsake those first principles on which alone true science can be built, in the search after the vague and the illusory. Then we are told the subject of the enquiry is, "the efforts made by man to secure enjoyment;" and tins epicurean theory pervades, and in our opinion disfigures the work. Facts are tangible, but motives are confessedly various; and, whether true or not in proportion as these speculative propositions are introduced into that which is capable of demonstration apart from them, a science retrogrades in value. A vague element is introduced into that, which it is desirable should be definite and precise. But this drawback, although it frequently renders the demonstrations unnecessarily prolix, and although the sentiment is so constantly reiterated as to become somewhat tiresome, is overborne, by the really valuable hints with which the work abounds. Even minute, and sometimes wire-drawn distinctions in the definition of terms have their value, if they lead to a full comprehension of their meanings. Yet we must object to the unnecessary limitations placed upon the term " capital" by Dr Hearn. " Capital," we are told, "consists of commodities that have been saved, and^are used for further production." That this aefinition is too narrow is proved by the very illustration adduced as an evidence of its truth, for in the next page we are informed that it is "the will of the proprietor, not any intrinsic quality, that converts a mere hoard, a quantity of saved commodities, a possible portion of revenue, into capital. Hence the same commodity may be, and often is at different times capital, and not capital. The bullock which, when living, formed part of the capital of the grazier, and when dead, of the butcher, isnot capital when the meat reaches th<r consumer." Now this seems to us a mere splitting of straws. It appears equivalent to faying a steam engine is only a steam engine when working, and something else when standing still. It is a departure from the usually accepted definition of the term, and because of its indifiniteness is calculated to confuse rather than enlighten. Capital, we should define to be accumulated wealth ; an instrument capable of being applied to further production. And whether that capital ia in the form of a living animal or employed in giving thews and sinews and muscles to the laborer wbo reproduces by his skill and toil, we hold it still to be capital. It may be wasted, as capital often is, but we see nothing gained by importing into its meaning the necessity of being advantageously used before being termed capital. We infinitely prefer the usual mercantile division, however loose, of capital into fixed, and floating. The first implying that which appears in the form of buildings, machinery, plant, &c, and the other that which is employed in providing food and raimerit and in the exchanges incident to mercantile and every day life. In other portions of {the work similar puerilities are met with. Thus, in the chapter on "exchange,'' we are told "there are two points to which a purchaser must look. He must consider the strength of his desire and th& cost at tohich he, eitlier by his own act or by the agency of others, can gratify that desire,'" We apprehend that, none but a person who was more conversant with books than with what Adam Smith terms, if we recollect rightly, " the haggling of the market," would have suggested to a buyer such a course of self examination. There may be and are many things that a man must have which he has every desire to do without. So far from the mass of mankind being influenced to exchange by desire after eDJoyment, they feel themselves compelled to part with, what thejr would willingly keep by the absolute necessities of existence and live against their wills in a constant condition of very unenjoyable self-denial. The desire to possess, so far as exchange is concerned, is usually on the part of the trader limited by " how much shall I gain by it," and on the part of the laborer by the necessities of his condition ,* and in both instances the cost at which the article can be produced is merely an abstract thourht, without any reference to the market price which he must pay for it. , . Apart from these little peculiarities, which are more or les3 frequently to be met with throughout the whole work, " Plutology" is, considering the subject, a very readable book. The illustra-

tions are varied, and many of them have a pecu'iar value from havjnsr a particular bearing upon the present condition of the Australasian Colonies. The time, too, at which it has appeared, is opportune. In New South Wales, in South Australia, and even in Victoria, there are strong parties who imagine that much good to a community is to be gained by a sys'em of protective duties. A car. ful study of Dr Hearn's work, and of the facts adduced in illustration of the principles laid down in it, would go far to disabuse a reader of that idea. It usually has its birth iv a contracted view of social advantage. A certain trade languishes. Those whose lives have been devoted to that pursuit see others prospering whi'e they are not making wages. They cannot perhaps see .that they are unfavorably placed for following that occupation, or that circumstances at that moment prevent its being profitable, or that they have not availed themselves of the most economic modes of prosecuting their calling, and that thu3 others more far-sighted or energetic, or 7nore favorably situated, are enabled to beat then', in the race of competition. Thus they are led to suppose they are entitled to levy a tax upon every consumer of that article in the community for thf ir own especial benefit, in order that the trade which they own to be unprofitable may coniirfue. It is one great use of works similar to ihis under review to place such false view--? in a true.ln»lit. and even when under the specious guise of fisca' advantage to show the truth of the dictum of a great statesman, "In taxation two and two do not make four." Dr He.irn, on this point observes—" Jt is now an axiom in finance, that the higher tho rate of duty upon articles in general use, the less will be the produce. This truth, if understood, would lead to a different course from that usually pursued in fiscal regulations. The misfortune is, that light is given to the few—the many walk in darkness amid its glare. This is evident from ihe mistake the Australian colonies have committed in their financial systems. They have thus far depended upon duties on imports for a great portion of their revenue; and with strange shortsightedness, have levied them upon those very articles which, from clircate and soil, they are the best able to produce. Thus spirits, wine', and tobacco, are the items on which hitherto their highest customs duties have been levied. The result is, that their native industry must either be fettered with complicated, oppressive, and expensive Fxcise regulations ; or, as their Home produce increases, their Customs revenues must decline. That the latter result is taking place, the reduced reve nues of those colonies, notwithstanding increased populations, evince. Widespread sound information of the character contained in " Pluto'ogy" alone cau correct those mistakes and lead to the building up of stable and pro.«peious communities ; and we therefore gla-ily commend its teachings to attention, and trust its,- advent is but the key-note announcing a healthy and expansive Australasian literature.