other; in short, only by previous bargain or contract inter se.

In one word, the principle of free exchange can alone bring about a fair adjustment of their relative claims on their joint produce. Take, for illustration, the simplest case:-Suppose A. a labourer, to have raised a quarter of wheat, by cultivating the land of B. C. having advanced him on loan the necessary implements, and D. the food on which he subsisted while at work. What possible guide can there be to the determination of the equitable share of A. B. C. and D. respectively in the value of the wheat, except the terms which they shall freely have agreed upon with each other at the commencement of the undertaking? And if this be true in the simplest cases, it is equally true of the more complicated; which it would be still more impracticable for any foreign party to adjudicate.

Custom will, indeed, establish a sort of standard by which these questions may be determined, in the absence of previous agreement: as, if a master hire a labourer without specifying the wages he intends giving, those ordinarily given for labour of that class by the custom of the country will be understood by both parties; and custom will, in the same manner, determine the fair rent of land of a certain quality, and the fair interest of money. But the custom itself consists only of the average of the free and voluntary agreements of parties similarly circumstanced through the neighbourhood. Any attempt to tie down. such agreements generally, as by a law, establishing either a minimum or a maximum of wages,

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interest, or rent, destroys the only criterion of their just amount, and substitutes a blind and arbitrary power, without any possible clue to guide it to a correct decision.

While the principle of free exchange of property and services can alone be depended on for securing an equitable distribution of wealth among the several classes who contribute to its production, such free exchange is equally indispensable to the encouragement of all in the work of production, and consequently to the increase of the aggregate produce to be distributed.

If, for example, the owner of land were in any way restricted from freely disposing of his land to his greatest advantage, -as by letting it out to farm to the highest bidder, or in portions of such size as he finds most profitable, he would have the less inducement to employ it, or allow it to be employed, in production. He might, by such restrictions, be induced to prefer keeping it in a state of waste, as a park, chase, or warren, comparatively unproductive and unserviceable to society. If he continued to cultivate it, he would be less likely to make any sacrifice for its improvement, by expending a portion of his rents in drainage, buildings, planting, or other endeavours to increase the productiveness of his estate. The same consequences would follow if, on the other hand, he were restrained by a tax or penalty from laying out any part of his domain in park or pleasure ground according to his taste. He would be less likely to reside upon his estate, and its general productiveness would probably, in the long run, be diminished rather than increased by such restriction.

Again, in whatever degree the capitalist may be interfered with in the free disposal of his property to his greatest advantage, (as is practically done to a great extent throughout most European states, by vexatious and embarrassing regulations, municipal and general, respecting the production, or removal from place to place, of particular commodities, and as has been proposed in this country by those who would have the law dictate to farmers what number of labourers they should employ, and how they should cultivate their farms) -in that degree will he be less desirous of accumulating capital, less eager to discover and avail himself of openings for its profitable employment, and less capable of making a profit upon it; he will be less productive and less economical, and consequently a less useful member of society, as well as a less happy one, through the annoyance which such restrictions occasion.

And the labourer, in his turn, unless left free to make the best bargain he can with his employer, and to carry his labour to the best market, whereever it may be; if interfered with by regulations confining him to particular occupations or particular places in which to exercise his industry, will never fully put forth his energies; but, in proportion to the restraint he suffers, assumes more or less of the sulky, idle, careless, and revengeful character of the slave-feels himself injured and ill-treated ;—at all events, wanting one of the essential conditions of industry-freedom of choice in its direction-is less productive, as well as less happy. Attempts to regulate wages, whether by fixing maxima or minima, or to regulate employ

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ments, by dividing society into castes, each confined to an exclusive occupation, as well as the ancient municipal regulations with regard to apprenticeships, servitude, &c., appear to have always produced the effect of damping the exertions of the labourers and diminishing their productiveness. The labour-rate, a new hobby of the present day with some of our well-meaning but not very profound legislators, is exposed, on the same ground, to merited reprobation.

Interference of any kind, in short, in the spontaneous direction of industry, and the free employment by their owners of the great agents in production, labour, land, and capital, has the certain effect of benumbing their powers and lessening the sum of production, and consequently the shares, of the producing parties; as well as of needlessly, and therefore unjustly, curtailing their freedom of action.

The only interference allowable is that which can be shown to be indispensable for the great object of securing the persons and property of every class. The law need, and ought to do no more. This comprehends the sum and substance of all the duties of a government with respect to wealth. Subject, therefore, to this condition, and to this only, perfect liberty in the voluntary exchange of the property and services of individuals is the only means of giving full play to the developement of their productiveness, and of increasing, to the utmost extent, the amount of their several shares. Such liberty is, on this ground,the sure ground of expediency for the further

ance of the general happiness-the absolute right of every member of society.

The limitation introduced includes, of course, all such appropriations of private property, and such directions of private action by the government, as are necessary for securing the persons and property of all. It is for the representatives of the people to determine the just claims of the state upon the purses or services of its citizens. But the exaction of such claims from each is the condition on which alone the rights of citizenship can be conceded to each. In a future chapter we shall touch upon the principles by which the great stateengine of taxation' ought to be regulated, and its proceeds applied.

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But before we proceed to this, it will be useful to take a general review of the existing modes by which wealth is produced and distributed.