Let it be again remembered that men cannot make force. All they can do is to avail themselves of force already existing, and employ it for working out this or that purpose. They can- not increase it; they cannot get from it more than its specific effect; and as much as they expend of it for doing one thing, must they lack of it for doing other things. Thus it is now be- coming a received doctrine, that what we call chemical affinity, heat, light, electricity, magnetism, and motion, are aU mani- festations of the same primordial force — that they are severally convertible into each other — and, as a corollary, that it is im- possible to obtain in any one form of this force more than its equivalent in the previous form. Now this is equally true of the agencies acting in society. It is quite possible to divert the power at present working out one result, to the working out of some other resrdt. You may transform one kind of in- fluence into another kind. But you cannot make more of it, and you cannot have it for nothing. You cannot, by legislative manoeuvring, get increased ability to achieve a desired object, except at the expense of something else. Just as much better as this particular thing is done, so much worse must another tiling be done.
Or, changing the illustration, and regarding society as an organism, we may say that it is impossible artificially to use up social vitality for the more active performance of one func- tion, without diminishing the activity with which other func- tions are performed. So long as society is let alone, its various organs will go on developing in due subordination to each other. If some of them are very imperfect, and make no appreciable progress towards efficiency, be sure it is because still more important organs are equally imperfect, and because SANITARY SUPERVISION. 391 the amount of vital force pervading society being limited, the rapid growth of these involves cessation of growth elsewhere. Be sure, also, that whenever there arises a special necessity for the better performance of any one fiinction, or for the estabhsh- ment of some new function, nature will respond. Instance in proof of this, the increase of particular manufacturing towns and sea-ports, or the formation of incorporated companies. Is there a rising demand for some commodity of general con- sumption? Immediately the organ secreting that commodity becomes more active, absorbs more people, begins to enlarge, and secretes in greater abundance. Instrumentalities for the fulfilment of other social requirements — for the supply of re- ligious culture, education, and so forth, are similarly provided: the less needful being postponed to the more needful; just as the several parts of the embryo are developed in the order of their subservience to Ufe. To interfere with this process by producing premature development in any particular direction is inevitably to disturb the due balance of organization, by causing somewhere else a corresponding atrophy. Let it never be forgotten that at any given time the amount of a society's vital force is fixed. Dependent as is that vital force upon the degree of adaptation that has taken place — upon the extent to which men have acquired fitness for a co-operative life — upon the efficiency with which they can combine as elements of the social organism, we may be quite certain that, whilst their characters remain constant, nothing can increase its total quantity. We may be also certain that this total quantity can produce only its exact equivalent of results; and that no legis- lators can get more from it; although by wasting it they may, and always do, get less.
Already, in treating of Poor-Laws and National Education, we have examined in detail the reaction by which these at- tempts at a multiplication of results are defeated. In the case of sanitary administrations, a similar reaction may be traced; showing itself, amongst other ways, in the checking of all social improvements that demand popular enterprise and per- 392 SANITARY SUPERVISION.
severance. Under the natural order of things, the unfolding of an intelligent, self-helping character, must keep pace with the ameUoration of physical circumstances — the advance of the one -with the exertions put forth to achieve the other; so that in establishing arrangements conducive to robustness of body, robustness of mind must be insensibly acquired. Contrariwise, to whatever extent activity of thought and firmness of purpose are made less needful by an artificial performance of their work, to that same extent must their increase, and the dependent social improvements, be retarded.
Should proof of this be asked for, it may be found in the contrast between Enghsh energy and Continental helplessness. English engineers (Manby, Wilson, and Co.) established the first gas-works in Paris, after the failure of a French com- pany; and many of the gas-works throughout Europe have been constructed by Englishmen. An English engineer (MiUer) introduced steam navigation on the Rhone; another Enghsh engineer (Pritchard) succeeded in ascending the Danube by steam, after the French and Germans had failed. The first steam-boats on the Loire were built by Englishmen (Fawcett and Preston); the great suspension bridge at Pesth has been built by an EngUshman (Tiemey Clarke); and an Enghshman (VignoUes) is now building a still greater suspen- sion bridge over the Dnieper; many continental railways have had Englishmen as consulting engineers; and in spite of the celebrated Mining College at Freyburg, several of the mineral fields along the Rhine have been opened up by Enghsh capital employing English skiU. Now why is this? Why were our coaches so superior to the dihgences and eilwagen of our neighbours? Why did our railway system develop so much faster? Why are our towns better drained, better paved, and better supplied with water? There was originally no greater mechanical aptitude, and no greater desire to progress in us than in the connate nations of northern Europe. If anything, we were comparatively deficient in these respects. Early im- provements in the arts of life were imported. The germs of SANITARY SUPERVISION. 393 owe silk and woollen manufactures came from abroad. The first water- works in London were erected by a Dutchman. How happens it, then, that we have now reversed the relationship? How happens it, that instead of being dependent on continental skill und enterprise, our skill and enterprise are at a premium on the Continent? Manifestly the change is due to difierence of discipline. Having been left in a greater degree than others to manage their own affairs, the English people have become self-helping, and have acquired great practical ability. Whilst conversely that comparative helplessness of the patemaUy-go- vemed nations of Europe, illustrated in the above facts, and commented upon by Laing, in his " Notes of a Traveller," and by other observers, is a natural result of the state-superintend- ence policy — is the reaction attendant on the action of official mechanisms— is the atrophy corresponding to some artificial hypertrophy.
One apparent difficulty accompanying the doctrine now contended for remains to be noticed. If sanitary administra- tion by the state be wrong, because it implies a deduction from the citizen's property greater than is needful for maintaining his rights, then is sanitary administration by municipal au- thorities wrong also for the same reason. Be it by general government or by local government, the levying of compulsory rates for drainage, and for paving and lighting, is inadmissible, as indirectly making legislative protection more costly than necessary, or, in other words, turning it into aggression (p. 278); and if so, it foUows that neither the past, present, nor proposed methods of securing the health of towns are equitable.
This seems an awkward conclusion; nevertheless, as dedu- cible from our general principle, we have no alternative but to take to it. How streets and courts are rightly to be kept in order remains to be considered. Kespecting sewage there would be no difficulty. Houses might readily be drained on 394 SANITARY SUPERVISION.
the same mercantile principle that they are now supplied ■vrith water. It is highly probahle that in the hands of a private company the resulting manure would not only pay the cost of collection, but would yield a considerable profit. But if not, the return on the invested capital would be made up by charges to those whose houses were drained: the alternative of having their connections with the main sewer stopped, being as good a security for payment as the analogous ones possessed by water and gas companies. Paving and lighting would properly fall to the management of house-owners. Were there no public provision for such conveniences, house-owners would qidckly find it their interest to furnish them. Some speculative build- ing society having set the example of improvement in this direction, competition would do the rest. DweUings without proper footway before them, and with no lamps to show the tenants to their doors, would stand empty, when better accom- modation was offered. And good paving and lighting having thus become essential, landlords would combine for the more economical supply of them.
To the objection that the perversity of individual landlords and the desire of others to take unfair advantage of the rest, would render such an arrangement impracticable, the reply is that in new suburban streets not yet taken to by the authori- ties such an arrangement is, to a considerable extent, already carried out, and would be much better carried out but for the consciousness that it is merely temporary. Moreover, no adverse inference could be drawn, were it even shown that for the present such an arrangement is impracticable. So, also, was personal freedom once. So once was representative go- vernment, and is stiU with many nations. As repeatedly pointed out, the practicability of recognising men's rights is proportionate to the degree in which men have become moral. That an organization dictated by the law of eq^ual freedom cannot yet be fully reaUzed is no proof of its imperfection: is proof only of our imperfection. And as by diminishing this, the process of adaptation has already fitted us for institutions SANITARY SUPERVISION. 395 which were once too good for us, so will it go on to fit us for others that may be too good for us now.
We find, then, that besides being at variance with the moral law, and besides involving absurdities, the dogma that it is the duty of the state to protect the health of its subjects may be successfully combated on grounds of policy. It turns out, upon examination, to be near akin to the older dogma that it is the duty of the state to provide for the spiritual welfare of its subjects — must, if consistently followed out, necessitate a co-extensive organization — and must, for aught there appears to the contrary, produce analogous results. Of the sufferings consequent upon imrestrained empuicism, it may safely be said that they are not so great as is represented; and that in as far as they do exist, they are amongst the penalties nature has attached to ignorance or imbecility, and which cannot be dis- sociated firom it without ultimately entaiUng much greater sufferings. The anxiety to improve by legislative measures the salubrity of our towns, is deprecated on the ground that natural causes insure the continutince of progress — insure further sanitary reforms, just as they insure advancement in the arts of life, the development of manufactures and commerce, and the spread of education. Moreover, it appears that such of these measures as are directed to the improvement of habitations, aim at what laws either cannot do, or what is being done much better without them; and to the rest it is objected, that they are not likely to accomphsh the proposed end — a belief founded upon the results of all analogous legislation, and confirmed by the little experience we have at present had of sanitary legislation itself. Further it is argued that even could the hoped-for advantages be fully realized they would be purchased at too great a cost; seeing that they could be obtained only by an equivalent retardation iu some still more important department of social progress.
CHAPTER XXIX.
CURRENCY, POSTAL ARRANGEMENTS, ETC.
So constandy have the ideas currency and government been associated — so "universal has heen the control exercised by law- givers over monetary systems — and so completely have men come to regard this control as a matter of course, that scarcely any one seems to inquire what would result were it abolished. Perhaps in no case is the necessity of state- superintendence so generally assumed; and in no case will the denial of that necessity cause so much surprise. Yet must the denial be made.
That laws interfering with currency cannot be enacted with- out a reverssJ of state-duty is obvious; for to either forbid the issue or enforce the receipt of certain notes or coin in return for other things, is to infringe the right of exchange — is to prevent men making exchanges which they otherwise would have made, or to oblige them to make exchanges which they otherwise would not have made — is, therefore, to break the law of equal freedom in their persons (Chap. XXIII.). If there be truth in our general principle, it must be impolitic as well as wrong to do this. Nor will those who infer as much be deceived; for it may be shown that all such dictation is not only needless, but necessarily injurious.
The monetary arrangements of any community are ulti- mately dependent, like most of its other arrangements, on the morality of its members. Amongst a people altogether dis-.
CURRENCY, POSTAL ARRANGEMENTS, ETC. 397 honest, every mercantile transaction must he effected in coin or goods; for promises to pay cannot circulate at all, Tvhere, by the hypothesis, there is no probability that they will be redeemed. Conversely, amongst perfectly honest people paper alone will form the circulating medium; seeing that as no one of such -will give promises to pay more than his assets will cover, there can exist no hesitation to receive promises to pay in all cases; and metallic money -will be needless, save in nominal amount to supply a measure of value. Manifestly, therefore, during any intermediate state, in which men are neither altogether dishonest nor altogether honest, a mixed currency -will exist; and the ratio of paper to coin will vary with the degree of trust individuals can place in each other. There seems no evading this conclusion. The greater the prevalence of fraud, the greater will be the number of trans- actions in which the seller will part with his goods only for an equivalent of intrinsic value; that is, the greater will be the number of transactions in which coin is required, and the more will the metaUic currency preponderate. On the other hand, the more generally men find each other trustworthy, the more frequently will they take payment in notes, bills of exchange, and checks; the fewer wiU be the cases in which gold and silver are called for, and the smaller will be the quantity of gold and silver in circulation.
Thus, self-regulating as is a currency when let alone, laws cannot improve its arrangements, although they may, and con- tinually do, derange them. That the state should compel every one who has given promises to pay, be he merchant, private banker, or shareholder in a joint-stock bank, duly to discharge the responsibilities he has incurred, is very true. To do this, however, is merely to maintain men's rights — to administer justice; and therefore comes within the state's normal function. But to do more than this — to restrict issues, or forbid notes below a certain denomination, is no less injurious than inequit- able. For, limiting the paper in circulation to an amount smaller than it would otherwise reach, inevitably necessitates 398 CUERENCY, POSTAL ARRANGEMENTS, ETC.
a corresponding increase of coin; and as coin is locked-up capital, on which the nation gets no interest, a needless in- crease of it is equivalent to an additional tax equal to the additional interest lost.
Moreover, even under such restrictions, men must still depend mainly upon each other's good faith and enlightened self-interest; seeing that only hy requiring the banker to keep sufficient specie in his coffers to cash all the notes he has issued, can complete security be given to the holders of them; and to require as much is to destroy the motive for issuing notes. It should be remembered, too, that even now the greater part of our paper currency is wholly unguaranteed. Over the bills of exchange in circulation", which represent liabiUties three times as great as are represented by notes, no control is exercised. Por the honouring of these there exists no special security, and the multiplication of them is without any limit, save that natural one above mentioned — the credit men find it safe to give each other.
Lastly, we have experience completely to the point. Whilst in England banking has been perpetually controlled, now by privileging the Bank of England, now by limiting banking partnerships, now by prohibiting banks of issue within a spe- cified circle, and now by restricting the amounts issued — whilst " we have never rested for many years together without some new laws, some new regulations, dictated by the fancy and theory fashionable at particular periods"''- — and whilst " by constant interference we have prevented public opinion, and the experience of bankers themselves, adapting and moulding their business to the best and safest course""^ — there has existed in Scotland for nearly two centuries a wholly uncontrolled system, — a complete free-trade in currency. And what have been the comparative results? Scotland has had the advantage, both ° Tfaougli not literally currency, bills of exchange, serving in many cases to effect mercantile transactions whicli would otherwise be effected in money, to that extent perform its function.
^ Capital, Currency, and Banking. By James Wilson, Esq., M.P. ' Ibid.
CnRRENCY, POSTAL ARRANGEMENTS, ETC. 399 in security and economy. The gain in security is proved by the fact that the proportion of bank failures in Scotland has been far less than iu England. Though " by law there has never been any restriction against any one issuing notes in Scotland; yet, in practice, it has ever been impossible for any unsound or nnsafe paper to obtain currency."* And thus the natural guarantee in the one case has been more ejfficient than the legislative one in the other. The gain in economy is proved by the fact that Scotland has carried on its business vdth a circulation of £3,500,000, -whilst ia England the circulation is from ^650,000,000 to £60,000,000; or, allowing for difference of popiilation, England has required a currency three times greater than Scotland.
When, therefore, we find a priori reason for concluding that in any given community the due balance between paper and coin will be spontaneously maintained — when we also find that three-fourths of our own paper circulation is self- regulated — that the restrictions on the other fourth entail a useless sinking of capital — and further, that facts prove a self- regulated system to be both safer and cheaper, we may fairly say, as above, that legislative interference is not only needless, but injurious.
If evil arises when the state takes upon itself to regulate currency, so also does evil arise when it turns banker. True, no direct breach of duty is committed in issuing notes; for the mere transfer of promises to pay to those who wiU take t"hem, necessitates neither infringement of men's rights nor the raising of taxes for illegitimate purposes. And did the state confine itself to this, no harm would result; but when, as in practice, it makes its notes, or, rather, those of its proxy, legal tender, it both violates the law of equal freedom and opens the door to abuses that were else impossible. Having enacted that its agent's promises to pay shall be taken in discharge of all claims between man and man, there readily " Capital, Currency, and BanJdng. By James "Wilson, Esq., M.P.
400 CURRENCY, POSTAL ARRANGEMENTS, ETC.
follows, -when occasion calls, the further step of enacting that these promises to pay shall be taken in discharge of all clauns on its agent. This done, further liabilities are iucurred with- out difficulty, for they can be liquidated in paper. Paper continues to be issued without hmit, and then comes depre- ciation; which depreciation is virtually an additional taxation, imposed without the popular consent— a taxation which, if directly imposed, would make men reahze the extravagance of their national expenditure, and condemn the war necessi- tating it. Seeing, then, that there could never occur depre- ciation, and its concomitant evils, were there no notes made inconvertible by act of parliament — and seeing that there could never exist any motive to make notes legally incon- vertible, save for purposes of state-banking— there is good reason to consider state-banking injurious. Should it be urged that, for the occasional evils it entails, state-banking more than compensates by the habitual supply of many mil- lions' worth of notes, whose place could not be supplied by other notes of equal credit, it is rephed that had the Bank of England no alliance with the state^, its notes would stiU circulate as extensively as now, provided its proprietors continued their sohcitude (so constantly shown at the half- yearly meetings) to keep their assets more than three millions above their habilities.
There is a third capacity in which a government usually stands related to the currency, viz., as a manufacturer of coins. That in theory a government may carry on the trade of stamping bullion without necessarily reversing its proper function is admitted. Practically, however, it never does so without collaterally transgressing. For the same causes which prevent it from profitably competing with private individuals in other trades, must prevent it from profitably competing * The alliance consists in this, that on the credit of a standing debt of £14,000,000, due from the Government to the Bank, the Bank is allowed to issue notes to that amount (besides further notes on other security), and hence to the extent of this debt the notes have practically a Government guarantee.
CURRENCY, POSTAL ARRANGEMENTS, ETC. 401 with them in this — a truth which inquiry into the management of the mint will sufficiently enforce. And if so, a government can manufacture coins without loss, only hy forbidding every one else to manufacture them. By doing this, however, it diminishes men's hberty of action in the same way as by any other trade restriction — iu short, does wrong. And, ulti- mately, the breach of the law of equal freedom thus committed results in society having to pay more for its metalUc currency than would otherwise be necessary.
Perhaps to many it wiU seem that by a national mint alone can the extensive diffusion of spurious coinage be prevented. But those who suppose this, forget that under a natural system there would exist the same safeguards against such an evil as at present. The ease with which bad money is distinguished from good, is the ultimate guarantee for genuineness; and this guarantee would be as efficient then as now. Moreover, whatever additional security arises from the punishment of " smashers " would still be afforded; seeing that to bring to justice those who by paying in base coin obtain goods "under false pretences," comes within the state's duty. Should it be urged that in the absence of legislative regulations there would be nothing to prevent makers from issuing new mintages of various denominations and degrees of fineness, the reply is that only when some obvious public advantage was to be obtained by it, could a coin differing from current ones get into circulation. Were private mints now permitted, the pro- prietors of them would be obUged to make their sovereigns like existing ones, because no others would be taken. For the size and weight — they would be tested by gauge and balance, as now (and for a while with great caution). For the fineness — it would be guaranteed by the scrutiny of other makers. Competing firms would assay each other's issues whenever there appeared the least reason to think them below the estabUshed standard, and should their suspicions prove cor- rect, would quickly find some mode of diffusing the infomia- tion. Probably a single case of exposure and the consequent 40Ji CURRENCY, POSTAL ARRANGEMENTS, ETC.
ruin would ever after prevent attempts to circulate coins of inferior fineness."