On the other hand, philosophy proves no less distinct from socialism, no less hostile to it, than politics and religion.

For just as in politics the principle of democracy is the sovereignty of numbers, and that of monarchy the sovereignty of the prince; just as likewise in affairs of conscience religion is nothing but submission to a mystical being, called God, and to the priests who represent him; just as finally in the economic world property—that is, exclusive control by the individual of the instruments of labor—is the point of departure of every theory,—so philosophy, in basing itself upon the a priori assumptions of reason, is inevitably led to attribute to the ME alone the generation and autocracy of ideas, and to deny the metaphysical value of experience; that is, universally to substitute, for the objective law, absolutism, despotism.

Now, a doctrine which, springing up suddenly in the heart of society, without antecedents and without ancestors, rejected from every department of conscience and society the arbitrary principle, in order to substitute as sole truth the relation of facts; which broke with tradition, and consented to make use of the past only as a point from which to launch forth into the future,—such a doctrine could not fail to stir up against it the established AUTHORITIES; and we can see today how, in spite of their internal discords, the said AUTHORITIES, which are but one, combine to fight the monster that is ready to swallow them.

To the workingmen who complain of the insufficiency of wages and the uncertainty of labor, political economy opposes the liberty of commerce; to the citizens who are seeking for the conditions of liberty and order, the ideologists respond with representative systems; to the tender souls who, having lost their ancient faith, ask the reason and end of their existence, religion proposes the unfathomable secrets of Providence, and philosophy holds doubt in reserve. Subterfuges always; complete ideas, in which heart and mind find rest, never! Socialism cries that it is time to set sail for the mainland, and to enter port: but, say the antisocialists, there is no port; humanity sails onward in God's care, under the command of priests, philosophers, orators, economists, and our circumnavigation is eternal.

Thus society finds itself, at its origin, divided into two great parties: the one traditional and essentially hierarchical, which, according to the object it is considering, calls itself by turns royalty or democracy, philosophy or religion, in short, property; the other socialism, which, coming to life at every crisis of civilization, proclaims itself preeminently ANARCHICAL and ATHEISTIC; that is, rebellious against all authority, human and divine.

Now, modern civilization has demonstrated that in a conflict of this nature the truth is found, not in the exclusion of one of the opposites, but wholly and solely in the reconciliation of the two; it is, I say, a fact of science that every antagonism, whether in Nature or in ideas, is resolvable in a more general fact or in a complex formula, which harmonizes the opposing factors by absorbing them, so to speak, in each other. Can we not, then, men of common sense, while awaiting the solution which the future will undoubtedly bring forth, prepare ourselves for this great transition by an analysis of the struggling powers, as well as their positive and negative qualities? Such a work, performed with accuracy and conscientiousness, even though it should not lead us directly to the solution, would have at least the inestimable advantage of revealing to us the conditions of the problem, and thereby putting us on our guard against every form of utopia.

What is there, then, in political economy that is necessary and true; whither does it tend; what are its powers; what are its wishes? It is this which I propose to determine in this work. What is the value of socialism? The same investigation will answer this question also.

For since, after all, socialism and political economy pursue the same end,—namely, liberty, order, and well-being among men,—it is evident that the conditions to be fulfilled—in other words, the difficulties to be overcome—to attain this end, are also the same for both, and that it remains only to examine the methods attempted or proposed by either party. But since, moreover, it has been given thus far to political economy alone to translate its ideas into acts, while socialism has scarcely done more than indulge in perpetual satire, it is no less clear that, in judging the works of economy according to their merit, we at the same time shall reduce to its just value the invective of the socialists: so that our criticism, though apparently special, will lead to absolute and definitive conclusions.

This it is necessary to make clearer by a few examples, before entering fully upon the examination of political economy.

% 2.—Inadequacy of theories and criticisms.

We will record first an important observation: the contending parties agree in acknowledging a common authority, whose support each claims,—SCIENCE.

Plato, a utopian, organized his ideal republic in the name of science, which, through modesty and euphemism, he called philosophy. Aristotle, a practical man, refuted the Platonic utopia in the name of the same philosophy. Thus the social war has continued since Plato and Aristotle. The modern socialists refer all things to science one and indivisible, but without power to agree either as to its content, its limits, or its method; the economists, on their side, affirm that social science in no wise differs from political economy.

It is our first business, then, to ascertain what a science of society must be.

Science, in general, is the logically arranged and systematic knowledge of that which IS.

Applying this idea to society, we will say: Social science is the logically arranged and systematic knowledge, not of that which society HAS BEEN, nor of that which it WILL BE, but of that which it IS in its whole life; that is, in the sum total of its successive manifestations: for there alone can it have reason and system. Social science must include human order, not alone in such or such a period of duration, nor in a few of its elements; but in all its principles and in the totality of its existence: as if social evolution, spread throughout time and space, should find itself suddenly gathered and fixed in a picture which, exhibiting the series of the ages and the sequence of phenomena, revealed their connection and unity. Such must be the science of every living and progressive reality; such social science indisputably is.

It may be, then, that political economy, in spite of its individualistic tendency and its exclusive affirmations, is a constituent part of social science, in which the phenomena that it describes are like the starting-points of a vast triangulation and the elements of an organic and complex whole. From this point of view, the progress of humanity, proceeding from the simple to the complex, would be entirely in harmony with the progress of science; and the conflicting and so often desolating facts, which are today the basis and object of political economy, would have to be considered by us as so many special hypotheses, successively realized by humanity in view of a superior hypothesis, whose realization would solve all difficulties, and satisfy socialism without destroying political economy. For, as I said in my introduction, in no case can we admit that humanity, however it expresses itself, is mistaken.

Let us now make this clearer by facts.

The question now most disputed is unquestionably that of the ORGANIZATION OF LABOR.

As John the Baptist preached in the desert, REPENT YE, so the socialists go about proclaiming everywhere this novelty old as the world, ORGANIZE LABOR, though never able to tell what, in their opinion, this organization should be. However that may be, the economists have seen that this socialistic clamor was damaging their theories: it was, indeed, a rebuke to them for ignoring that which they ought first to recognize,—labor. They have replied, therefore, to the attack of their adversaries, first by maintaining that labor is organized, that there is no other organization of labor than liberty to produce and exchange, either on one's own personal account, or in association with others,—in which case the course to be pursued has been prescribed by the civil and commercial codes. Then, as this argument served only to make them the laughing-stock of their antagonists, they assumed the offensive; and, showing that the socialists understood nothing at all themselves of this organization that they held up as a scarecrow, they ended by saying that it was but a new socialistic chimera, a word without sense,—an absurdity. The latest writings of the economists are full of these pitiless conclusions.

Nevertheless, it is certain that the phrase organization of labor contains as clear and rational a meaning as these that follow: organization of the workshop, organization of the army, organization of police, organization of charity, organization of war. In this respect, the argument of the economists is deplorably irrational. No less certain is it that the organization of labor cannot be a utopia and chimera; for at the moment that labor, the supreme condition of civilization, begins to exist, it follows that it is already submitted to an organization, such as it is, which satisfies the economists, but which the socialists think detestable.

There remains, then, relatively to the proposal to organize labor formulated by socialism, this objection,—that labor is organized. Now, this is utterly untenable, since it is notorious that in labor, supply, demand, division, quantity, proportion, price, and security, nothing, absolutely nothing is regulated; on the contrary, everything is given up to the caprices of free-will; that is, to chance.

As for us, guided by the idea that we have formed of social science, we shall affirm, against the socialists and against the economists, not that labor MUST BE ORGANIZED, nor that it is ORGANIZED but that it IS BEING ORGANIZED.

Labor, we say, is being organized: that is, the process of organization has been going on from the beginning of the world, and will continue till the end. Political economy teaches us the primary elements of this organization; but socialism is right in asserting that, in its present form, the organization is inadequate and transitory; and the whole mission of science is continually to ascertain, in view of the results obtained and the phenomena in course of development, what innovations can be immediately effected.

Socialism and political economy, then, while waging a burlesque war, pursue in reality the same idea,—the organization of labor.

But both are guilty of disloyalty to science and of mutual calumny, when on the one hand political economy, mistaking for science its scraps of theory, denies the possibility of further progress; and when socialism, abandoning tradition, aims at reestablishing society on undiscoverable bases.

Thus socialism is nothing but a profound criticism and continual development of political economy; and, to apply here the celebrated aphorism of the school, Nihil est in intellectu, quod non prius fuerit in sensu, there is nothing in the socialistic hypotheses which is not duplicated in economic practice. On the other hand, political economy is but an impertinent rhapsody, so long as it affirms as absolutely valid the facts collected by Adam Smith and J. B. Say.

Another question, no less disputed than the preceding one, is that of usury, or lending at interest.

Usury, or in other words the price of use, is the emolument, of whatever nature, which the proprietor derives from the loan of his property. Quidquid sorti accrescit usura est, say the theologians. Usury, the foundation of credit, was one of the first of the means which social spontaneity employed in its work of organization, and whose analysis discloses the profound laws of civilization. The ancient philosophers and the Fathers of the Church, who must be regarded here as the representatives of socialism in the early centuries of the Christian era, by a singular fallacy,—which arose however from the paucity of economic knowledge in their day,—allowed farm-rent and condemned interest on money, because, as they believed, money was unproductive. They distinguished consequently between the loan of things which are consumed by use—among which they included money—and the loan of things which, without being consumed, yield a product to the user.

The economists had no difficulty in showing, by generalizing the idea of rent, that in the economy of society the action of capital, or its productivity, was the same whether it was consumed in wages or retained the character of an instrument; that, consequently, it was necessary either to prohibit the rent of land or to allow interest on money, since both were by the same title payment for privilege, indemnity for loan. It required more than fifteen centuries to get this idea accepted, and to reassure the consciences that had been terrified by the anathemas pronounced by Catholicism against usury. But finally the weight of evidence and the general desire favored the usurers: they won the battle against socialism; and from this legitimation of usury society gained some immense and unquestionable advantages. Under these circumstances socialism, which had tried to generalize the law enacted by Moses for the Israelites alone, Non foeneraberis proximo tuo, sed alieno, was beaten by an idea which it had accepted from the economic routine,— namely, farm-rent,—elevated into the theory of the productivity of capital.

But the economists in their turn were less fortunate, when they were afterwards called upon to justify farm-rent in itself, and to establish this theory of the product of capital. It may be said that, on this point, they have lost all the advantage they had at first gained against socialism.

Undoubtedly—and I am the first to recognize it—the rent of land, like that of money and all personal and real property, is a spontaneous and universal fact, which has its source in the depths of our nature, and which soon becomes, by its natural development, one of the most potent means of organization. I shall prove even that interest on capital is but the materialization of the aphorism, ALL LABOR SHOULD LEAVE AN EXCESS. But in the face of this theory, or rather this fiction, of the productivity of capital, arises another thesis no less certain, which in these latter days has struck the ablest economists: it is that all value is born of labor, and is composed essentially of wages; in other words, that no wealth has its origin in privilege, or acquires any value except through work; and that, consequently, labor alone is the source of revenue among men. How, then, reconcile the theory of farm-rent or productivity of capital—a theory confirmed by universal custom, which conservative political economy is forced to accept but cannot justify—with this other theory which shows that value is normally composed of wages, and which inevitably ends, as we shall demonstrate, in an equality in society between net product and raw product?

The socialists have not wasted the opportunity. Starting with the principle that labor is the source of all income, they began to call the holders of capital to account for their farm-rents and emoluments; and, as the economists won the first victory by generalizing under a common expression farm-rent and usury, so the socialists have taken their revenge by causing the seignorial rights of capital to vanish before the still more general principle of labor. Property has been demolished from top to bottom: the economists could only keep silent; but, powerless to arrest itself in this new descent, socialism has slipped clear to the farthest boundaries of communistic utopia, and, for want of a practical solution, society is reduced to a position where it can neither justify its tradition, nor commit itself to experiments in which the least mistake would drive it backward several thousand years.

In such a situation what is the mandate of science?

Certainly not to halt in an arbitrary, inconceivable, and impossible juste milieu; it is to generalize further, and discover a third principle, a fact, a superior law, which shall explain the fiction of capital and the myth of property, and reconcile them with the theory which makes labor the origin of all wealth. This is what socialism, if it wishes to proceed logically, must undertake. In fact, the theory of the real productivity of labor, and that of the fictitious productivity of capital, are both essentially economical: socialism has endeavored only to show the contradiction between them, without regard to experience or logic; for it appears to be as destitute of the one as of the other. Now, in law, the litigant who accepts the authority of a title in one particular must accept it in all; it is not allowable to divide the documents and proofs. Had socialism the right to decline the authority of political economy in relation to usury, when it appealed for support to this same authority in relation to the analysis of value? By no means. All that socialism could demand in such a case was, either that political economy should be directed to reconcile its theories, or that it might be itself intrusted with this difficult task.

The more closely we examine these solemn discussions, the more clearly we see that the whole trouble is due to the fact that one of the parties does not wish to see, while the other refuses to advance.

It is a principle of our law that no one can be deprived of his property except for the sake of general utility, and in consideration of a fair indemnity payable in advance.

This principle is eminently an economic one; for, on the one hand, it assumes the right of eminent domain of the citizen expropriated, whose consent, according to the democratic spirit of the social compact, is necessarily presupposed. On the other hand, the indemnity, or the price of the article taken, is fixed, not by the intrinsic value of the article, but by the general law of commerce,—supply and demand; in a word, by opinion. Expropriation in the name of society may be likened to a contract of convenience, agreed to by each with all; not only then must the price be paid, but the convenience also must be paid for: and it is thus, in reality, that the indemnity is estimated. If the Roman legists had seen this analogy, they undoubtedly would have hesitated less over the question of expropriation for the sake of public utility.

Such, then, is the sanction of the social right of expropriation: indemnity.

Now, practically, not only is the principle of indemnity not applied in all cases where it ought to be, but it is impossible that it should be so applied. Thus, the law which established railways provided indemnity for the lands to be occupied by the rails; it did nothing for the multitude of industries dependent upon the previous method of conveyance, whose losses far exceeded the value of the lands whose owners received compensation. Similarly, when the question of indemnifying the manufacturers of beet-root sugar was under consideration, it occurred to no one that the State ought to indemnify also the large number of laborers and employees who earned their livelihood in the beet-root industry, and who were, perhaps, to be reduced to want.

Nevertheless, it is certain, according to the idea of capital and the theory of production, that as the possessor of land, whose means of labor is taken from him by the railroad, has a right to be indemnified, so also the manufacturer, whose capital is rendered unproductive by the same railroad, is entitled to indemnification. Why, then, is he not indemnified? Alas! because to indemnify him is impossible. With such a system of justice and impartiality society would be, as a general thing, unable to act, and would return to the fixedness of Roman justice. There must be victims. The principle of indemnity is consequently abandoned; to one or more classes of citizens the State is inevitably bankrupt.

At this point the socialists appear. They charge that the sole object of political economy is to sacrifice the interests of the masses and create privileges; then, finding in the law of expropriation the rudiment of an agrarian law, they suddenly advocate universal expropriation; that is, production and consumption in common.

But here socialism relapses from criticism into utopia, and its incapacity becomes freshly apparent in its contradictions. If the principle of expropriation for the sake of public utility, carried to its logical conclusion, leads to a complete reorganization of society, before commencing the work the character of this new organization must be understood; now, socialism, I repeat, has no science save a few bits of physiology and political economy. Further, it is necessary in accordance with the principle of indemnity, if not to compensate citizens, at least to guarantee to them the values which they part with; it is necessary, in short, to insure them against loss. Now, outside of the public fortune, the management of which it demands, where will socialism find security for this same fortune?

It is impossible, in sound and honest logic, to escape this circle. Consequently the communists, more open in their dealings than certain other sectarians of flowing and pacific ideas, decide the difficulty; and promise, the power once in their hands, to expropriate all and indemnify and guarantee none. At bottom, that would be neither unjust nor disloyal. Unfortunately, to burn is not to reply, as the interesting Desmoulins said to Robespierre; and such a discussion ends always in fire and the guillotine. Here, as everywhere, two rights, equally sacred, stand in the presence of each other, the right of the citizen and the right of the State; it is enough to say that there is a superior formula which reconciles the socialistic utopias and the mutilated theories of political economy, and that the problem is to discover it. In this emergency what are the contending parties doing? Nothing. We might say rather that they raise questions only to get an opportunity to redress injuries. What do I say? The questions are not even understood by them; and, while the public is considering the sublime problems of society and human destiny, the professors of social science, orthodox and heretics, do not agree on principles. Witness the question which occasioned these inquiries, and which its authors certainly understand no better than its disparagers,—THE RELATION OF PROFITS AND WAGES.

What! an Academy of economists has offered for competition a question the terms of which it does not understand! How, then, could it have conceived the idea?

Well! I know that my statement is astonishing and incredible; but it is true. Like the theologians, who answer metaphysical problems only by myths and allegories, which always reproduce the problems but never solve them, the economists reply to the questions which they ask only by relating how they were led to ask them: should they conceive that it was possible to go further, they would cease to be economists.

For example, what is profit? That which remains for the manager after he has paid all the expenses. Now, the expenses consist of the labor performed and the materials consumed; or, in fine, wages. What, then, is the wages of a workingman? The least that can be given him; that is, we do not know. What should be the price of the merchandise put upon the market by the manager? The highest that he can obtain; that is, again, we do not know. Political economy prohibits the supposition that the prices of merchandise and labor can be FIXED, although it admits that they can be ESTIMATED; and that for the reason, say the economists, that estimation is essentially an arbitrary operation, which never can lead to sure and certain conclusions. How, then, shall we find the relation between two unknowns which, according to political economy, cannot be determined? Thus political economy proposes insolvable problems; and yet we shall soon see that it must propose them, and that our century must solve them. That is why I said that the Academy of Moral Sciences, in offering for competition the question of the relation of profits and wages, spoke unconsciously, spoke prophetically.

But it will be said, Is it not true that, if labor is in great demand and laborers are scarce, wages will rise, while profits on the other hand will decrease; that if, in the press of competition, there is an excess of production, there will be a stoppage and forced sales, consequently no profit for the manager and a danger of idleness for the laborer; that then the latter will offer his labor at a reduced price; that, if a machine is invented, it will first extinguish the fires of its rivals; then, a monopoly established, and the laborer made dependent on the employer, profits and wages will be inversely proportional? Cannot all these causes, and others besides, be studied, ascertained, counterbalanced, etc.?

Oh, monographs, histories!—we have been saturated with them since the days of Adam Smith and J. B. Say, and they are scarcely more than variations of these authors' words. But it is not thus that the question should be understood, although the Academy has given it no other meaning. The RELATION OF PROFITS AND WAGES should be considered in an absolute sense, and not from the inconclusive point of view of the accidents of commerce and the division of interests: two things which must ultimately receive their interpretation. Let me explain myself.

Considering producer and consumer as a single individual, whose recompense is naturally equal to his product; then dividing this product into two parts, one which rewards the producer for his outlay, another which represents his profit, according to the axiom that all labor should leave an excess,—we have to determine the relation of one of these parts to the other. This done, it will be easy to deduce the ratio of the fortunes of these two classes of men, employers and wage-laborers, as well as account for all commercial oscillations. This will be a series of corollaries to add to the demonstration.

Now, that such a relation may exist and be estimated, there must necessarily be a law, internal or external, which governs wages and prices; and since, in the present state of things, wages and prices vary and oscillate continually, we must ask what are the general facts, the causes, which make value vary and oscillate, and within what limits this oscillation takes place.

But this very question is contrary to the accepted principles; for whoever says OSCILLATION necessarily supposes a mean direction toward which value's centre of gravity continually tends; and when the Academy asks that we DETERMINE THE OSCILLATIONS OF PROFIT AND WAGES, it asks thereby that we DETERMINE VALUE. Now that is precisely what the gentlemen of the Academy deny: they are unwilling to admit that, if value is variable, it is for that very reason determinable; that variability is the sign and condition of determinability. They pretend that value, ever varying, can never be determined. This is like maintaining that, given the number of oscillations of a pendulum per second, their amplitude, and the latitude and elevation of the spot where the experiment is performed, the length of the pendulum cannot be determined because the pendulum is in motion. Such is political economy's first article of faith.

As for socialism, it does not appear to have understood the question, or to be concerned about it. Among its many organs, some simply and merely put aside the problem by substituting division for distribution,—that is, by banishing number and measure from the social organism: others relieve themselves of the embarrassment by applying universal suffrage to the wages question. It is needless to say that these platitudes find dupes by thousands and hundreds of thousands.

The condemnation of political economy has been formulated by Malthus in this famous passage:—

A man who is born into a world already occupied, his family unable to support him, and society not requiring his labor,—such a man, I say, has not the least right to claim any nourishment whatever: he is really one too many on the earth. At the great banquet of Nature there is no plate laid for him. Nature commands him to take himself away, and she will not be slow to put her order into execution.[6]

[6 The passage quoted may not be given in the exact words used by Malthus, it having reached its present shape through the medium of a French rendering—Translator.



This then is the necessary, the fatal, conclusion of political economy,—a conclusion which I shall demonstrate by evidence hitherto unknown in this field of inquiry,—Death to him who does not possess!

In order better to grasp the thought of Malthus, let us translate it into philosophical propositions by stripping it of its rhetorical gloss:—

"Individual liberty, and property, which is its expression, are economical data; equality and solidarity are not.

"Under this system, each one by himself, each one for himself: labor, like all merchandise, is subject to fluctuation: hence the risks of the proletariat.

"Whoever has neither income nor wages has no right to demand anything of others: his misfortune falls on his own head; in the game of fortune, luck has been against him."

From the point of view of political economy these propositions are irrefutable; and Malthus, who has formulated them with such alarming exactness, is secure against all reproach. From the point of view of the conditions of social science, these same propositions are radically false, and even contradictory.

The error of Malthus, or rather of political economy, does not consist in saying that a man who has nothing to eat must die; or in maintaining that, under the system of individual appropriation, there is no course for him who has neither labor nor income but to withdraw from life by suicide, unless he prefers to be driven from it by starvation: such is, on the one hand, the law of our existence; such is, on the other, the consequence of property; and M. Rossi has taken altogether too much trouble to justify the good sense of Malthus on this point. I suspect, indeed, that M. Rossi, in making so lengthy and loving an apology for Malthus, intended to recommend political economy in the same way that his fellow-countryman Machiavel, in his book entitled "The Prince," recommended despotism to the admiration of the world. In pointing out misery as the necessary condition of industrial and commercial absolutism, M. Rossi seems to say to us: There is your law, your justice, your political economy; there is property.

But Gallic simplicity does not understand artifice; and it would have been better to have said to France, in her immaculate tongue: The error of Malthus, the radical vice of political economy, consists, in general terms, in affirming as a definitive state a transitory condition,— namely, the division of society into patricians and proletaires; and, particularly, in saying that in an organized, and consequently solidaire, society, there may be some who possess, labor, and consume, while others have neither possession, nor labor, nor bread. Finally Malthus, or political economy, reasons erroneously when seeing in the faculty of indefinite reproduction—which the human race enjoys in neither greater nor less degree than all animal and vegetable species—a permanent danger of famine; whereas it is only necessary to show the necessity, and consequently the existence, of a law of equilibrium between population and production.

In short, the theory of Malthus—and herein lies the great merit of this writer, a merit which none of his colleagues has dreamed of attributing to him—is a reductio ad absurdum of all political economy.

As for socialism, that was summed up long since by Plato and Thomas More in a single word, UTOPIA,—that is, NO-PLACE, a chimera.

Nevertheless, for the honor of the human mind and that justice may be done to all, this must be said: neither could economic and legislative science have had any other beginning than they did have, nor can society remain in this original position.

Every science must first define its domain, produce and collect its materials: before system, facts; before the age of art, the age of learning. The economic science, subject like every other to the law of time and the conditions of experience, before seeking to ascertain how things OUGHT TO TAKE PLACE in society, had to tell us how things DO TAKE PLACE; and all these processes which the authors speak of so pompously in their books as LAWS, PRINCIPLES, and THEORIES, in spite of their incoherence and inconsistency, had to be gathered up with scrupulous diligence, and described with strict impartiality. The fulfilment of this task called for more genius perhaps, certainly for more self-sacrifice, than will be demanded by the future progress of the science.

If, then, social economy is even yet rather an aspiration towards the future than a knowledge of reality, it must be admitted that the elements of this study are all included in political economy; and I believe that I express the general sentiment in saying that this opinion has become that of the vast majority of minds. The present finds few defenders, it is true; but the disgust with utopia is no less universal: and everybody understands that the truth lies in a formula which shall reconcile these two terms: CONSERVATION and MOTION.

Thus, thanks to Adam Smith, J. B. Say, Ricardo, and Malthus, as well as their rash opponents, the mysteries of fortune, atria Ditis, are uncovered; the power of capital, the oppression of the laborer, the machinations of monopoly, illumined at all points, shun the public gaze. Concerning the facts observed and described by the economists, we reason and conjecture: abusive laws, iniquitous customs, respected so long as the obscurity which sustained their life lasted, with difficulty dragged to the daylight, are expiring beneath the general reprobation; it is suspected that the government of society must be learned no longer from an empty ideology, after the fashion of the Contrat social, but, as Montesquieu foresaw, from the RELATION OF THINGS; and already a Left of eminently socialistic tendencies, composed of savants, magistrates, legists, professors, and even capitalists and manufacturers,—all born representatives and defenders of privilege,—and of a million of adepts, is forming in the nation above and outside of PARLIAMENTARY opinions, and seeking, by an analysis of economic facts, to capture the secrets of the life of societies.

Let us represent political economy, then, as an immense plain, strewn with materials prepared for an edifice. The laborers await the signal, full of ardor, and burning to commence the work: but the architect has disappeared without leaving the plan.

The economists have stored their memories with many things: unhappily they have not the shadow of an estimate. They know the origin and history of each piece; what it cost to make it; what wood makes the best joists, and what clay the best bricks; what has been expended in tools and carts; how much the carpenters earned, and how much the stone-cutters: they do not know the destination and the place of anything. The economists cannot deny that they have before them the fragments, scattered pell-mell, of a chef-d'oeuvre, disjecti membra poetae; but it has been impossible for them as yet to recover the general design, and, whenever they have attempted any comparisons, they have met only with incoherence. Driven to despair at last by their fruitless combinations, they have erected as a dogma the architectural incongruity of the science, or, as they say, the INCONVENIENCES of its principles; in a word, they have denied the science.[7]

[7] "The principle which governs the life of nations is not pure science: it is the total of the complex data which depend on the state of enlightenment, on needs and interests." Thus expressed itself, in December, 1844, one of the clearest minds that France contained, M. Leon Faucher. Explain, if you can, how a man of this stamp was led by his economic convictions to declare that the COMPLEX DATA of society are opposed to PURE SCIENCE.



Thus the division of labor, without which production would be almost nothing, is subject to a thousand inconveniences, the worst of which is the demoralization of the laborer; machinery causes, not only cheapness, but obstruction of the market and stoppage of business; competition ends in oppression; taxation, the material bond of society, is generally a scourge dreaded equally with fire and hail; credit is necessarily accompanied by bankruptcy; property is a swarm of abuses; commerce degenerates into a game of chance, in which it is sometimes allowable even to cheat: in short, disorder existing everywhere to an equal extent with order, and no one knowing how the latter is to banish the former, taxis ataxien diokein, the economists have decided that all is for the best, and regard every reformatory proposition as hostile to political economy.

The social edifice, then, has been abandoned; the crowd has burst into the wood-yard; columns, capitals, and plinths, wood, stone, and metal, have been distributed in portions and drawn by lot: and, of all these materials collected for a magnificent temple, property, ignorant and barbarous, has built huts. The work before us, then, is not only to recover the plan of the edifice, but to dislodge the occupants, who maintain that their city is superb, and, at the very mention of restoration, appear in battle-array at their gates. Such confusion was not seen of old at Babel: happily we speak French, and are more courageous than the companions of Nimrod.

But enough of allegory: the historical and descriptive method, successfully employed so long as the work was one of examination only, is henceforth useless: after thousands of monographs and tables, we are no further advanced than in the age of Xenophon and Hesiod. The Phenicians, the Greeks, the Italians, labored in their day as we do in ours: they invested their money, paid their laborers, extended their domains, made their expeditions and recoveries, kept their books, speculated, dabbled in stocks, and ruined themselves according to all the rules of economic art; knowing as well as ourselves how to gain monopolies and fleece the consumer and laborer. Of all this accounts are only too numerous; and, though we should rehearse forever our statistics and our figures, we should always have before our eyes only chaos,—chaos constant and uniform.

It is thought, indeed, that from the era of mythology to the present year 57 of our great revolution, the general welfare has improved: Christianity has long been regarded as the chief cause of this amelioration, but now the economists claim all the honor for their own principles. For after all, they say, what has been the influence of Christianity upon society? Thoroughly utopian at its birth, it has been able to maintain and extend itself only by gradually adopting all the economic categories,—labor, capital, farm-rent, usury, traffic, property; in short, by consecrating the Roman law, the highest expression of political economy.

Christianity, a stranger in its theological aspect to the theories of production and consumption, has been to European civilization what the trades-unions and free-masons were not long since to itinerant workmen,—a sort of insurance company and mutual aid society; in this respect, it owes nothing to political economy, and the good which it has done cannot be invoked by the latter in its own support. The effects of charity and self-sacrifice are outside of the domain of economy, which must bring about social happiness through justice and the organization of labor. For the rest, I am ready to admit the beneficial effects of the system of property; but I observe that these effects are entirely balanced by the misery which it is the nature of this system to produce; so that, as an illustrious minister recently confessed before the English Parliament, and as we shall soon show, the increase of misery in the present state of society is parallel and equal to the increase of wealth,—which completely annuls the merits of political economy.

Thus political economy is justified neither by its maxims nor by its works; and, as for socialism, its whole value consists in having established this fact. We are forced, then, to resume the examination of political economy, since it alone contains, at least in part, the materials of social science; and to ascertain whether its theories do not conceal some error, the correction of which would reconcile fact and right, reveal the organic law of humanity, and give the positive conception of order.



CHAPTER II.

OF VALUE.

% 1.—Opposition of value in USE and value in EXCHANGE.

Value is the corner-stone of the economic edifice. The divine artist who has intrusted us with the continuation of his work has explained himself on this point to no one; but the few indications given may serve as a basis of conjecture. Value, in fact, presents two faces: one, which the economists call value in USE, or intrinsic value; another, value in EXCHANGE, or of opinion. The effects which are produced by value under this double aspect, and which are very irregular so long as it is not established,—or, to use a more philosophical expression, so long as it is not constituted,—are changed totally by this constitution.

Now, in what consists the correlation between USEFUL value and value in EXCHANGE? What is meant by CONSTITUTED value, and by what sudden change is this constitution effected? To answer these questions is the object and end of political economy. I beg the reader to give his whole attention to what is to follow, this chapter being the only one in the work which will tax his patience. For my part, I will endeavor to be more and more simple and clear.

Everything which can be of any service to me is of value to me, and the more abundant the useful thing is the richer I am: so far there is no difficulty. Milk and flesh, fruits and grains, wool, sugar, cotton, wine, metals, marble; in fact, land, water, air, fire, and sunlight,— are, relatively to me, values of use, values by nature and function. If all the things which serve to sustain my life were as abundant as certain of them are, light for instance,—in other words, if the quantity of every valuable thing was inexhaustible,—my welfare would be forever assured: I should not have to labor; I should not even think. In such a state, things would always be USEFUL, but it would be no longer true to say that they ARE VALUABLE; for value, as we shall soon see, indicates an essentially social relation; and it is solely through exchange, reverting as it were from society to Nature, that we have acquired the idea of utility. The whole development of civilization originates, then, in the necessity which the human race is under of continually causing the creation of new values; just as the evils of society are primarily caused by the perpetual struggle which we maintain against our own inertia. Take away from man that desire which leads him to think and fits him for a life of contemplation, and the lord of creation stands on a level with the highest of the beasts.

But how does value in use become value in exchange? For it should be noticed that the two kinds of value, although coexisting in thought (since the former becomes apparent only in the presence of the latter), nevertheless maintain a relation of succession: exchangeable value is a sort of reflex of useful value; just as the theologians teach that in the Trinity the Father, contemplating himself through all eternity, begets the Son. This generation of the idea of value has not been noted by the economists with sufficient care: it is important that we should tarry over it.

Since, then, of the objects which I need, a very large number exist in Nature only in moderate quantities, or even not at all, I am forced to assist in the production of that which I lack; and, as I cannot turn my hand to so many things, I propose to other men, my collaborators in various functions, to yield me a portion of their products in exchange for mine. I shall then always have in my possession more of my own special product than I consume; just as my fellows will always have in their possession more of their respective products than they use. This tacit agreement is fulfilled by COMMERCE. Here we may observe that the logical succession of the two kinds of value is even more apparent in history than in theory, men having spent thousands of years in disputing over natural wealth (this being what is called PRIMITIVE COMMUNISM) before their industry afforded opportunity for exchange.

Now, the capacity possessed by all products, whether natural or the result of labor, of serving to maintain man, is called distinctively value in use; their capacity of purchasing each other, value in exchange. At bottom this is the same thing, since the second case only adds to the first the idea of substitution, which may seem an idle subtlety; practically, the consequences are surprising, and beneficial or fatal by turns.

Consequently, the distinction established in value is based on facts, and is not at all arbitrary: it is for man, in submitting to this law, to use it to increase his welfare and liberty. Labor, as an author (M. Walras) has beautifully expressed it, is a war declared against the parsimony of Nature; by it wealth and society are simultaneously created. Not only does labor produce incomparably more wealth than Nature gives us,—for instance, it has been remarked that the shoemakers alone in France produce ten times more than the mines of Peru, Brazil, and Mexico combined,—but, labor infinitely extending and multiplying its rights by the changes which it makes in natural values, it gradually comes about that all wealth, in running the gauntlet of labor, falls wholly into the hands of him who creates it, and that nothing, or almost nothing, is left for the possessor of the original material.

Such, then, is the path of economic progress: at first, appropriation of the land and natural values; then, association and distribution through labor until complete equality is attained. Chasms are scattered along our road, the sword is suspended over our heads; but, to avert all dangers, we have reason, and reason is omnipotence.

It results from the relation of useful value to exchangeable value that if, by accident or from malice, exchange should be forbidden to a single producer, or if the utility of his product should suddenly cease, though his storehouses were full, he would possess nothing. The more sacrifices he had made and the more courage he had displayed in producing, the greater would be his misery. If the utility of the product, instead of wholly disappearing, should only diminish,—a thing which may happen in a hundred ways,—the laborer, instead of being struck down and ruined by a sudden catastrophe, would be impoverished only; obliged to give a large quantity of his own value for a small quantity of the values of others, his means of subsistence would be reduced by an amount equal to the deficit in his sale: which would lead by degrees from competency to want. If, finally, the utility of the product should increase, or else if its production should become less costly, the balance of exchange would turn to the advantage of the producer, whose condition would thus be raised from fatiguing mediocrity to idle opulence. This phenomenon of depreciation and enrichment is manifested under a thousand forms and by a thousand combinations; it is the essence of the passional and intriguing game of commerce and industry. And this is the lottery, full of traps, which the economists think ought to last forever, and whose suppression the Academy of Moral and Political Sciences unwittingly demands, when, under the names of profit and wages, it asks us to reconcile value in use and value in exchange; that is, to find the method of rendering all useful values equally exchangeable, and, vice versa, all exchangeable values equally useful.

The economists have very clearly shown the double character of value, but what they have not made equally plain is its contradictory nature. Here begins our criticism.

Utility is the necessary condition of exchange; but take away exchange, and utility vanishes: these two things are indissolubly connected. Where, then, is the contradiction?

Since all of us live only by labor and exchange, and grow richer as production and exchange increase, each of us produces as much useful value as possible, in order to increase by that amount his exchanges, and consequently his enjoyments. Well, the first effect, the inevitable effect, of the multiplication of values is to LOWER them: the more abundant is an article of merchandise, the more it loses in exchange and depreciates commercially. Is it not true that there is a contradiction between the necessity of labor and its results?

I adjure the reader, before rushing ahead for the explanation, to arrest his attention upon the fact.

A peasant who has harvested twenty sacks of wheat, which he with his family proposes to consume, deems himself twice as rich as if he had harvested only ten; likewise a housewife who has spun fifty yards of linen believes that she is twice as rich as if she had spun but twenty- five. Relatively to the household, both are right; looked at in their external relations, they may be utterly mistaken. If the crop of wheat is double throughout the whole country, twenty sacks will sell for less than ten would have sold for if it had been but half as great; so, under similar circumstances, fifty yards of linen will be worth less than twenty-five: so that value decreases as the production of utility increases, and a producer may arrive at poverty by continually enriching himself. And this seems unalterable, inasmuch as there is no way of escape except all the products of industry become infinite in quantity, like air and light, which is absurd. God of my reason! Jean Jacques would have said: it is not the economists who are irrational; it is political economy itself which is false to its definitions. Mentita est iniquitas sibi.

In the preceding examples the useful value exceeds the exchangeable value: in other cases it is less. Then the same phenomenon is produced, but in the opposite direction: the balance is in favor of the producer, while the consumer suffers. This is notably the case in seasons of scarcity, when the high price of provisions is always more or less factitious. There are also professions whose whole art consists in giving to an article of minor usefulness, which could easily be dispensed with, an exaggerated value of opinion: such, in general, are the arts of luxury. Man, through his aesthetic passion, is eager for the trifles the possession of which would highly satisfy his vanity, his innate desire for luxury, and his more noble and more respectable love of the beautiful: upon this the dealers in this class of articles speculate. To tax fancy and elegance is no less odious or absurd than to tax circulation: but such a tax is collected by a few fashionable merchants, whom general infatuation protects, and whose whole merit generally consists in warping taste and generating fickleness. Hence no one complains; and all the maledictions of opinion are reserved for the monopolists who, through genius, succeed in raising by a few cents the price of linen and bread.

It is little to have pointed out this astonishing contrast between useful value and exchangeable value, which the economists have been in the habit of regarding as very simple: it must be shown that this pretended simplicity conceals a profound mystery, which it is our duty to fathom.

I summon, therefore, every serious economist to tell me, otherwise than by transforming or repeating the question, for what reason value decreases in proportion as production augments, and reciprocally what causes this same value to increase in proportion as production diminishes. In technical terms, useful value and exchangeable value, necessary to each other, are inversely proportional to each other; I ask, then, why scarcity, instead of utility, is synonymous with dearness. For—mark it well—the price of merchandise is independent of the amount of labor expended in production; and its greater or less cost does not serve at all to explain the variations in its price. Value is capricious, like liberty: it considers neither utility nor labor; on the contrary, it seems that, in the ordinary course of affairs, and exceptional derangements aside, the most useful objects are those which are sold at the lowest price; in other words, that it is just that the men who perform the most attractive labor should be the best rewarded, while those whose tasks demand the most exertion are paid the least. So that, in following the principle to its ultimate consequences, we reach the most logical of conclusions: that things whose use is necessary and quantity infinite must be gratuitous, while those which are without utility and extremely scarce must bear an inestimable price. But, to complete the embarrassment, these extremes do not occur in practice: on the one hand, no human product can ever become infinite in quantity; on the other, the rarest things must be in some degree useful, else they would not be susceptible of value. Useful value and exchangeable value remain, then, in inevitable attachment, although it is their nature continually to tend towards mutual exclusion.

I shall not fatigue the reader with a refutation of the logomachies which might be offered in explanation of this subject: of the contradiction inherent in the idea of value there is no assignable cause, no possible explanation. The fact of which I speak is one of those called primitive,—that is, one of those which may serve to explain others, but which in themselves, like the bodies called simple, are inexplicable. Such is the dualism of spirit and matter. Spirit and matter are two terms each of which, taken separately, indicates a special aspect of spirit, but corresponds to no reality. So, given man's needs of a great variety of products together with the obligation of procuring them by his labor, the opposition of useful value to exchangeable value necessarily results; and from this opposition a contradiction on the very threshold of political economy. No intelligence, no will, divine or human, can prevent it.

Therefore, instead of searching for a chimerical explanation, let us content ourselves with establishing the necessity of the contradiction. Whatever the abundance of created values and the proportion in which they exchange for each other, in order that we may exchange our products, mine must suit you when you are the BUYER, and I must be satisfied with yours when you are the SELLER. For no one has a right to impose his own merchandise upon another: the sole judge of utility, or in other words the want, is the buyer. Therefore, in the first case, you have the deciding power; in the second, I have it. Take away reciprocal liberty, and exchange is no longer the expression of industrial solidarity: it is robbery. Communism, by the way, will never surmount this difficulty.

But, where there is liberty, production is necessarily undetermined, either in quantity or in quality; so that from the point of view of economic progress, as from that of the relation of consumers, valuation always is an arbitrary matter, and the price of merchandise will ever fluctuate. Suppose for a moment that all producers should sell at a fixed price: there would be some who, producing at less cost and in better quality, would get much, while others would get nothing. In every way equilibrium would be destroyed. Do you wish, in order to prevent business stagnation, to limit production strictly to the necessary amount?

That would be a violation of liberty: for, in depriving me of the power of choice, you condemn me to pay the highest price; you destroy competition, the sole guarantee of cheapness, and encourage smuggling. In this way, to avoid commercial absolutism, you would rush into administrative absolutism; to create equality, you would destroy liberty, which is to deny equality itself. Would you group producers in a single workshop (supposing you to possess this secret)? That again does not suffice: it would be necessary also to group consumers in a common household, whereby you would abandon the point. We are not to abolish the idea of value, which is as impossible as to abolish labor, but to determine it; we are not to kill individual liberty, but to socialize it. Now, it is proved that it is the free will of man that gives rise to the opposition between value in use and value in exchange: how reconcile this opposition while free will exists? And how sacrifice the latter without sacrificing man?

Then, from the very fact that I, as a free purchaser, am judge of my own wants, judge of the fitness of the object, judge of the price I wish to pay, and that you on the other hand, as a free producer, control the means of production, and consequently have the power to reduce your expenses, absolutism forces itself forward as an element of value, and causes it to oscillate between utility and opinion.

But this oscillation, clearly pointed out by the economists, is but the effect of a contradiction which, repeating itself on a vast scale, engenders the most unexpected phenomena. Three years of fertility, in certain provinces of Russia, are a public calamity, just as, in our vineyards, three years of abundance are a calamity to the wine-grower I know well that the economists attribute this distress to a lack of markets; wherefore this question of markets is an important one with them. Unfortunately the theory of markets, like that of emigration with which they attempted to meet Malthus, is a begging of the question. The States having the largest market are as subject to over-production as the most isolated countries: where are high and low prices better known than in the stock-exchanges of Paris and London?

From the oscillation of value and the irregular effects resulting therefrom the socialists and economists, each in their own way, have reasoned to opposite, but equally false, conclusions: the former have made it a text for the slander of political economy and its exclusion from social science; the latter, for the denial of all possibility of reconciliation, and the affirmation of the incommensurability of values, and consequently the inequality of fortunes, as an absolute law of commerce.

I say that both parties are equally in error.

1. The contradictory idea of value, so clearly exhibited by the inevitable distinction between useful value and value in exchange does not arise from a false mental perception, or from a vicious terminology, or from any practical error; it lies deep in the nature of things, and forces itself upon the mind as a general form of thought,—that is, as a category. Now, as the idea of value is the point of departure of political economy, it follows that all the elements of the science—I use the word science in anticipation—are contradictory in themselves and opposed to each other: so truly is this the case that on every question the economist finds himself continually placed between an affirmation and a negation alike irrefutable. ANTINOMY, in fine, to use a word sanctioned by modern philosophy, is the essential characteristic of political economy; that is to say, it is at once its death-sentence and its justification.

ANTINOMY, literally COUNTER-LAW, means opposition in principle or antagonism in relation, just as contradiction or ANTILOGY indicates opposition or discrepancy in speech. Antinomy,—I ask pardon for entering into these scholastic details, comparatively unfamiliar as yet to most economists,—antinomy is the conception of a law with two faces, the one positive, the other negative. Such, for instance, is the law called ATTRACTION, by which the planets revolve around the sun, and which mathematicians have analyzed into centripetal force and centrifugal force. Such also is the problem of the infinite divisibility of matter, which, as Kant has shown, can be denied and affirmed successively by arguments equally plausible and irrefutable.

Antinomy simply expresses a fact, and forces itself imperatively on the mind; contradiction, properly speaking, is an absurdity. This distinction between antinomy (contra-lex) and contradiction (contra-dictio) shows in what sense it can be said that, in a certain class of ideas and facts, the argument of contradiction has not the same value as in mathematics.

In mathematics it is a rule that, a proposition being proved false, its opposite is true, and vice versa. In fact, this is the principal method of mathematical demonstration. In social economy, it is not the same: thus we see, for example, that property being proved by its results to be false, the opposite formula, communism, is none the truer on this account, but is deniable at the same time and by the same title as property. Does it follow, as has been said with such ridiculous emphasis, that every truth, every idea, results from a contradiction,— that is, from a something which is affirmed and denied at the same moment and from the same point of view,—and that it may be necessary to abandon wholly the old-fashioned logic, which regards contradiction as the infallible sign of error? This babble is worthy of sophists who, destitute of faith and honesty, endeavor to perpetuate scepticism in order to maintain their impertinent uselessness. Because antinomy, immediately it is misunderstood, leads inevitably to contradiction, these have been mistaken for each other, especially among the French, who like to judge everything by its effects. But neither contradiction nor antinomy, which analysis discovers at the bottom of every simple idea, is the principle of truth. Contradiction is always synonymous with nullity; as for antinomy, sometimes called by the same name, it is indeed the forerunner of truth, the material of which, so to speak, it supplies; but it is not truth, and, considered in itself, it is the efficient cause of disorder, the characteristic form of delusion and evil.

An antinomy is made up of two terms, necessary to each other, but always opposed, and tending to mutual destruction. I hardly dare to add, as I must, that the first of these terms has received the name thesis, position, and the second the name anti-thesis, counter-position. This method of thought is now so well-known that it will soon figure, I hope, in the text-books of the primary schools. We shall see directly how from the combination of these two zeros unity springs forth, or the idea which dispels the antinomy.

Thus, in value, there is nothing useful that cannot be exchanged, nothing exchangeable if it be not useful: value in use and value in exchange are inseparable. But while, by industrial progress, demand varies and multiplies to an infinite extent, and while manufactures tend in consequence to increase the natural utility of things, and finally to convert all useful value into exchangeable value, production, on the other hand, continually increasing the power of its instruments and always reducing its expenses, tends to restore the venal value of things to their primitive utility: so that value in use and value in exchange are in perpetual struggle.

The effects of this struggle are well-known: the wars of commerce and of the market; obstructions to business; stagnation; prohibition; the massacres of competition; monopoly; reductions of wages; laws fixing maximum prices; the crushing inequality of fortunes; misery,—all these result from the antinomy of value. The proof of this I may be excused from giving here, as it will appear naturally in the chapters to follow.

The socialists, while justly demanding that this antagonism be brought to an end, have erred in mistaking its source, and in seeing in it only a mental oversight, capable of rectification by a legal decree. Hence this lamentable outbreak of sentimentalism, which has rendered socialism so insipid to positive minds, and which, spreading the absurdest delusions, makes so many fresh dupes every day. My complaint of socialism is not that it has appeared among us without cause, but that it has clung so long and so obstinately to its silliness.

2. But the economists have erred no less gravely in rejecting a priori, and just because of the contradictory, or rather antinomical, nature of value, every idea and hope of reform, never desiring to understand that, for the very reason that society has arrived at its highest point of antagonism, reconciliation and harmony are at hand. This, nevertheless, is what a close study of political economy would have shown to its adepts, had they paid more attention to the lights of modern metaphysics. It is indeed demonstrated, by the most positive evidence known to the human mind, that wherever an antinomy appears there is a promise of a resolution of its terms, and consequently an announcement of a coming change. Now, the idea of value, as developed by J. B. Say among others, satisfies exactly these conditions. But the economists, who have remained for the most part by an inconceivable fatality ignorant of the movement of philosophy, have guarded against the supposition that the essentially contradictory, or, as they say, variable, character of value might be at the same time the authentic sign of its constitutionality,—that is, of its eminently harmonious and determinable nature. However dishonorable it may be to the economists of the various schools, it is certain that their opposition to socialism results solely from this false conception of their own principles; one proof, taken from a thousand, will suffice.

The Academy of Sciences (not that of Moral Sciences, but the other), going outside of its province one day, listened to a paper in which it was proposed to calculate tables of value for all kinds of merchandise upon the basis of the average product per man and per day's labor in each branch of industry. "Le Journal des Economistes" (August, 1845) immediately made this communication, intrusive in its eyes, the text of a protest against the plan of tariff which was its object, and the occasion of a reestablishment of what it called true principles:—

"There is no measure of value, no standard of value," it said in its conclusions; "economic science tells us this, just as mathematical science tells us that there is no perpetual motion or quadrature of the circle, and that these never will be found. Now, if there is no standard of value, if the measure of value is not even a metaphysical illusion, what then is the law which governs exchanges? . . . . . As we have said before, it is, in a general way, SUPPLY and DEMAND: that is the last word of science."

Now, how did "Le Journal des Economistes" prove that there is no measure of value? I use the consecrated expression: though I shall show directly that this phrase, MEASURE OF VALUE, is somewhat ambiguous, and does not convey the exact meaning which it is intended, and which it ought, to express.

This journal repeated, with accompanying examples, the exposition that we have just given of the variability of value, but without arriving, as we did, at the contradiction. Now, if the estimable editor, one of the most distinguished economists of the school of Say, had had stricter logical habits; if he had been long used, not only to observing facts, but to seeking their explanation in the ideas which produce them,—I do not doubt that he would have expressed himself more cautiously, and that, instead of seeing in the variability of value the LAST WORD OF SCIENCE, he would have recognized unaided that it is the first. Seeing that the variability of value proceeds not from things, but from the mind, he would have said that, as human liberty has its law, so value must have its law; consequently, that the hypothesis of a measure of value, this being the common expression, is not at all irrational; quite the contrary, that it is the denial of this measure that is illogical, untenable.

And indeed, what is there in the idea of measuring, and consequently of fixing, value, that is unscientific? All men believe in it; all wish it, search for it, suppose it: every proposition of sale or purchase is at bottom only a comparison between two values,—that is, a determination, more or less accurate if you will, but nevertheless effective. The opinion of the human race on the existing difference between real value and market price may be said to be unanimous. It is for this reason that so many kinds of merchandise are sold at a fixed price; there are some, indeed, which, even in their variations, are always fixed,—bread, for instance. It will not be denied that, if two manufacturers can supply one another by an account current, and at a settled price, with quantities of their respective products, ten, a hundred, a thousand manufacturers can do the same. Now, that would be a solution of the problem of the measure of value. The price of everything would be debated upon, I allow, because debate is still our only method of fixing prices; but yet, as all light is the result of conflict, debate, though it may be a proof of uncertainty, has for its object, setting aside the greater or less amount of good faith that enters into it, the discovery of the relation of values to each other,— that is, their measurement, their law.

Ricardo, in his theory of rent, has given a magnificent example of the commensurability of values. He has shown that arable lands are to each other as the crops which they yield with the same outlay; and here universal practice is in harmony with theory. Now who will say that this positive and sure method of estimating the value of land, and in general of all engaged capital, cannot be applied to products also? . . . . .

They say: Political economy is not affected by a priori arguments; it pronounces only upon facts. Now, facts and experience teach us that there is no measure of value and can be none, and prove that, though the conception of such an idea was necessary in the nature of things, its realization is wholly chimerical. Supply and demand is the sole law of exchange.

I will not repeat that experience proves precisely the contrary; that everything, in the economic progress of society, denotes a tendency toward the constitution and establishment of value; that that is the culminating point of political economy—which by this constitution becomes transformed—and the supreme indication of order in society: this general outline, reiterated without proof, would become tiresome. I confine myself for the moment within the limits of the discussion, and say that SUPPLY and DEMAND, held up as the sole regulators of value, are nothing more than two ceremonial forms serving to bring useful value and exchangeable value face to face, and to provoke their reconciliation. They are the two electric poles, whose connection must produce the economical phenomenon of affinity called EXCHANGE. Like the poles of a battery, supply and demand are diametrically opposed to each other, and tend continually to mutual annihilation; it is by their antagonism that the price of things is either increased, or reduced to nothing: we wish to know, then, if it is not possible, on every occasion, so to balance or harmonize these two forces that the price of things always may be the expression of their true value, the expression of justice. To say after that that supply and demand is the law of exchange is to say that supply and demand is the law of supply and demand; it is not an explanation of the general practice, but a declaration of its absurdity; and I deny that the general practice is absurd.

I have just quoted Ricardo as having given, in a special instance, a positive rule for the comparison of values: the economists do better still. Every year they gather from tables of statistics the average prices of the various grains. Now, what is the meaning of an average? Every one can see that in a single operation, taken at random from a million, there is no means of knowing which prevailed, supply—that is, useful value—or exchangeable value,—that is, demand. But as every increase in the price of merchandise is followed sooner or later by a proportional reduction; as, in other words, in society the profits of speculation are equal to the losses,—we may regard with good reason the average of prices during a complete period as indicative of the real and legitimate value of products. This average, it is true, is ascertained too late: but who knows that we could not discover it in advance? Is there an economist who dares to deny it?

Nolens volens, then, the measure of value must be sought for: logic commands it, and her conclusions are adverse to economists and socialists alike. The opinion which denies the existence of this measure is irrational, unreasonable. Say as often as you please, on the one hand, that political economy is a science of facts, and that the facts are contrary to the hypothesis of a determination of value, or, on the other, that this troublesome question would not present itself in a system of universal association, which would absorb all antagonism,—I will reply still, to the right and to the left:—

1. That as no fact is produced which has not its cause, so none exists which has not its law; and that, if the law of exchange is not discovered, the fault is, not with the facts, but with the savants.

2. That, as long as man shall labor in order to live, and shall labor freely, justice will be the condition of fraternity and the basis of association; now, without a determination of value, justice is imperfect, impossible.

% 2.—Constitution of value; definition of wealth.

We know value in its two opposite aspects; we do not know it in its TOTALITY. If we can acquire this new idea, we shall have absolute value; and a table of values, such as was called for in the memoir read to the Academy of Sciences, will be possible.

Let us picture wealth, then, as a mass held by a chemical force in a permanent state of composition, in which new elements, continually entering, combine in different proportions, but according to a certain law: value is the proportional relation (the measure) in which each of these elements forms a part of the whole.

From this two things result: one, that the economists have been wholly deluded when they have looked for the general measure of value in wheat, specie, rent, etc., and also when, after having demonstrated that this standard of measure was neither here nor there, they have concluded that value has neither law nor measure; the other, that the proportion of values may continually vary without ceasing on that account to be subject to a law, whose determination is precisely the solution sought.

This idea of value satisfies, as we shall see, all the conditions: for it includes at once both the positive and fixed element in useful value and the variable element in exchangeable value; in the second place, it puts an end to the contradiction which seemed an insurmountable obstacle in the way of the determination of value; further, we shall show that value thus understood differs entirely from a simple juxtaposition of the two ideas of useful and exchangeable value, and that it is endowed with new properties.

The proportionality of products is not a revelation that we pretend to offer to the world, or a novelty that we bring into science, any more than the division of labor was an unheard-of thing when Adam Smith explained its marvels. The proportionality of products is, as we might prove easily by innumerable quotations, a common idea running through the works on political economy, but to which no one as yet has dreamed of attributing its rightful importance: and this is the task which we undertake today. We feel bound, for the rest, to make this declaration in order to reassure the reader concerning our pretensions to originality, and to satisfy those minds whose timidity leads them to look with little favor upon new ideas.

The economists seem always to have understood by the measure of value only a standard, a sort of original unit, existing by itself, and applicable to all sorts of merchandise, as the yard is applicable to all lengths. Consequently, many have thought that such a standard is furnished by the precious metals. But the theory of money has proved that, far from being the measure of values, specie is only their arithmetic, and a conventional arithmetic at that. Gold and silver are to value what the thermometer is to heat. The thermometer, with its arbitrarily graduated scale, indicates clearly when there is a loss or an increase of heat: but what the laws of heat-equilibrium are; what is its proportion in various bodies; what amount is necessary to cause a rise of ten, fifteen, or twenty degrees in the thermometer,—the thermometer does not tell us; it is not certain even that the degrees of the scale, equal to each other, correspond to equal additions of heat.

The idea that has been entertained hitherto of the measure of value, then, is inexact; the object of our inquiry is not the standard of value, as has been said so often and so foolishly, but the law which regulates the proportions of the various products to the social wealth; for upon the knowledge of this law depends the rise and fall of prices in so far as it is normal and legitimate. In a word, as we understand by the measure of celestial bodies the relation resulting from the comparison of these bodies with each other, so, by the measure of values, we must understand the relation which results from their comparison.

Now, I say that this relation has its law, and this comparison its principle.

I suppose, then, a force which combines in certain proportions the elements of wealth, and makes of them a homogeneous whole: if the constituent elements do not exist in the desired proportion, the combination will take place nevertheless; but, instead of absorbing all the material, it will reject a portion as useless. The internal movement by which the combination is produced, and which the affinities of the various substances determine—this movement in society is exchange; exchange considered no longer simply in its elementary form and between man and man, but exchange considered as the fusion of all values produced by private industry in one and the same mass of social wealth. Finally, the proportion in which each element enters into the compound is what we call value; the excess remaining after the combination is NON-VALUE, until the addition of a certain quantity of other elements causes further combination and exchange.

We will explain later the function of money.

This determined, it is conceivable that at a given moment the proportions of values constituting the wealth of a country may be determined, or at least empirically approximated, by means of statistics and inventories, in nearly the same way that the chemists have discovered by experience, aided by analysis, the proportions of hydrogen and oxygen necessary to the formation of water. There is nothing objectionable in this method of determining values; it is, after all, only a matter of accounts. But such a work, however interesting it might be, would teach us nothing very useful. On the one hand, indeed, we know that the proportion continually varies; on the other, it is clear that from a statement of the public wealth giving the proportions of values only for the time and place when and where the statistics should be gathered we could not deduce the law of proportionality of wealth. For that, a single operation of this sort would not be sufficient; thousands and millions of similar ones would be necessary, even admitting the method to be worthy of confidence.

Now, here there is a difference between economic science and chemistry. The chemists, who have discovered by experience such beautiful proportions, know no more of their how or why than of the force which governs them. Social economy, on the contrary, to which no a posteriori investigation could reveal directly the law of proportionality of values, can grasp it in the very force which produces it, and which it is time to announce.

This force, which Adam Smith has glorified so eloquently, and which his successors have misconceived (making privilege its equal),—this force is LABOR. Labor differs in quantity and quality with the producer; in this respect it is like all the great principles of Nature and the most general laws, simple in their action and formula, but infinitely modified by a multitude of special causes, and manifesting themselves under an innumerable variety of forms. It is labor, labor alone, that produces all the elements of wealth, and that combines them to their last molecules according to a law of variable, but certain, proportionality. It is labor, in fine, that, as the principle of life, agitates (mens agitat) the material (molem) of wealth, and proportions it.

Society, or the collective man, produces an infinitude of objects, the enjoyment of which constitutes its WELL-BEING. This well-being is developed not only in the ratio of the QUANTITY of the products, but also in the ratio of their VARIETY (quality) and PROPORTION. From this fundamental datum it follows that society always, at each instant of its life, must strive for such proportion in its products as will give the greatest amount of well-being, considering the power and means of production. Abundance, variety, and proportion in products are the three factors which constitute WEALTH: wealth, the object of social economy, is subject to the same conditions of existence as beauty, the object of art; virtue, the object of morality; and truth, the object of metaphysics.

But how establish this marvelous proportion, so essential that without it a portion of human labor is lost,—that is, useless, inharmonious, untrue, and consequently synonymous with poverty and annihilation?

Prometheus, according to the fable, is the symbol of human activity. Prometheus steals the fire of heaven, and invents the early arts; Prometheus foresees the future, and aspires to equality with Jupiter; Prometheus is God. Then let us call society Prometheus.

Prometheus devotes, on an average, ten hours a day to labor, seven to rest, and seven to pleasure. In order to gather from his toil the most useful fruit, Prometheus notes the time and trouble that each object of his consumption costs him. Only experience can teach him this, and this experience lasts throughout his life. While laboring and producing, then, Prometheus is subject to an infinitude of disappointments. But, as a final result, the more he labors, the greater is his well-being and the more idealized his luxury; the further he extends his conquests over Nature, the more strongly he fortifies within him the principle of life and intelligence in the exercise of which he alone finds happiness; till finally, the early education of the Laborer completed and order introduced into his occupations, to labor, with him, is no longer to suffer,—it is to live, to enjoy. But the attractiveness of labor does not nullify the rule, since, on the contrary, it is the fruit of it; and those who, under the pretext that labor should be attractive, reason to the denial of justice and to communism, resemble children who, after having gathered some flowers in the garden, should arrange a flower-bed on the staircase.

In society, then, justice is simply the proportionality of values; its guarantee and sanction is the responsibility of the producer.

Prometheus knows that such a product costs an hour's labor, such another a day's, a week's, a year's; he knows at the same time that all these products, arranged according to their cost, form the progression of his wealth. First, then, he will assure his existence by providing himself with the least costly, and consequently most necessary, things; then, as fast as his position becomes secure, he will look forward to articles of luxury, proceeding always, if he is wise, according to the natural position of each article in the scale of prices. Sometimes Prometheus will make a mistake in his calculations, or else, carried away by passion, he will sacrifice an immediate good to a premature enjoyment, and, after having toiled and moiled, he will starve. Thus, the law carries with it its own sanction; its violation is inevitably accompanied by the immediate punishment of the transgressor.