That is why charity, the prime virtue of the Christian, the legitimate hope of the socialist, the object of all the efforts of the economist, is a social vice the moment it is made a principle of constitution and a law; that is why certain economists have been able to say that legal charity had caused more evil in society than proprietary usurpation. Man, like the society of which he is a part, has a perpetual account current with himself; all that he consumes he must produce. Such is the general rule, which no one can escape without being, ipso facto struck with dishonor or suspected of fraud. Singular idea, truly,--that of decreeing, under pretext of fraternity, the relative inferiority of the majority of men! After this beautiful declaration nothing will be left but to draw its consequences; and soon, thanks to fraternity, aristocracy will be restored.
Double the normal wages of the workman, and you invite him to idleness, humiliate his dignity, and demoralize his conscience; take away from him the legitimate price of his efforts, and you either excite his anger or exalt his pride. In either case you damage his fraternal feelings. On the contrary, make enjoyment conditional upon labor, the only way provided by nature to associate men and make them good and happy, and you go back under the law of economic distribution, PRODUCTS ARE BOUGHT WITH PRODUCTS. Communism, as I have often complained, is the very denial of society in its foundation, which is the progressive equivalence of functions and capacities. The communists, toward whom all socialism tends, do not believe in equality by nature and education; they supply it by sovereign decrees which they cannot carry out, whatever they may do. Instead of seeking justice in the harmony of facts, they take it from their feelings, calling justice everything that seems to them to be love of one's neighbor, and incessantly confounding matters of reason with those of sentiment.
Why then continually interject fraternity, charity, sacrifice, and God into the discussion of economic questions? May it not be that the utopists find it easier to expatiate upon these grand words than to seriously study social manifestations?
Fraternity! Brothers as much as you please, provided I am the big brother and you the little; provided society, our common mother, honors my primogeniture and my services by doubling my portion. You will provide for my wants, you say, in proportion to your resources. I intend, on the contrary, that such provision shall be in proportion to my labor; if not, I cease to labor.
Charity! I deny charity; it is mysticism. In vain do you talk to me of fraternity and love: I remain convinced that you love me but little, and I feel very sure that I do not love you. Your friendship is but a feint, and, if you love me, it is from self-interest. I ask all that my products cost me, and only what they cost me: why do you refuse me?
Sacrifice! I deny sacrifice; it is mysticism. Talk to me of DEBT and CREDIT, the only criterion in my eyes of the just and the unjust, of good and evil in society. To each according to his works, first; and if, on occasion, I am impelled to aid you, I will do it with a good grace; but I will not be constrained. To constrain me to sacrifice is to assassinate me.
God! I know no God; mysticism again. Begin by striking this word from your remarks, if you wish me to listen to you; for three thousand years of experience have taught me that whoever talks to me of God has designs on my liberty or on my purse. How much do you owe me? How much do I owe you? That is my religion and my God.
Monopoly owes its existence both to nature and to man: it has its source at once in the profoundest depths of our conscience and in the external fact of our individualization. Just as in our body and our mind everything has its specialty and property, so our labor presents itself with a proper and specific character, which constitutes its quality and value. And as labor cannot manifest itself without material or an object for its exercise, the person necessarily attracting the thing, monopoly is established from subject to object as infallibly as duration is constituted from past to future. Bees, ants, and other animals living in society seem endowed individually only with automatism; with them soul and instinct are almost exclusively collective. That is why, among such animals, there can be no room for privilege and monopoly; why, even in their most volitional operations, they neither consult nor deliberate. But, humanity being individualized in its plurality, man becomes inevitably a monopolist, since, if not a monopolist, he is nothing; and the social problem is to find out, not how to abolish, but how to reconcile, all monopolies.
The most remarkable and the most immediate effects of monopoly are: 1. In the political order, the classification of humanity into families, tribes, cities, nations, States: this is the elementary division of humanity into groups and sub-groups of laborers, distinguished by race, language, customs, and climate. It was by monopoly that the human race took possession of the globe, as it will be by association that it will become complete sovereign thereof.
Political and civil law, as conceived by all legislators without exception and as formulated by jurists, born of this patriotic and national organization of societies, forms, in the series of social contradictions, a first and vast branch, the study of which by itself alone would demand four times more time than we can give it in discussing the question of industrial economy propounded by the Academy.
2. In the economic order, monopoly contributes to the increase of comfort, in the first place by adding to the general wealth through the perfecting of methods, and then by CAPITALIZING,--that is, by consolidating the conquests of labor obtained by division, machinery, and competition. From this effect of monopoly has resulted the economic fiction by which the capitalist is considered a producer and capital an agent of production; then, as a consequence of this fiction, the theory of NET PRODUCT and GROSS PRODUCT.
On this point we have a few considerations to present. First let us quote J. B. Say: The value produced is the GROSS product: after the costs of production have been deducted, this value is the NET product.
Considering a nation as a whole, it has no net product; for, as products have no value beyond the costs of production, when these costs are cut off, the entire value of the product is cut off. National production, annual production, should always therefore be understood as gross production.
The annual revenue is the gross revenue.
The term net production is applicable only when considering the interests of one producer in opposition to those of other producers. The manager of an enterprise gets his PROFIT from the value PRODUCED after deducting the value CONSUMED. But what to him is value consumed, such as the purchase of a productive service, is so much income to the performer of the service.--Treatise on Political Economy: Analytical Table.
These definitions are irreproachable. Unhappily J. B. Say did not see their full bearing, and could not have foreseen that one day his immediate successor at the College of France would attack them. M. Rossi has pretended to refute the proposition of J. B. Say that TO A NATION NET PRODUCT IS THE SAME THING AS GROSS PRODUCT by this consideration,--that nations, no more than individuals of enterprise, can produce without advances, and that, if J. B. Say's formula were true, it would follow that the axiom, Ex nihilo nihil fit, is not true Now, that is precisely what happens. Humanity, in imitation of God, produces everything from nothing, de nihilo hilum just as it is itself a product of nothing, just as its thought comes out of the void; and M. Rossi would not have made such a mistake, if, like the physiocrats, he had not confounded the products of the INDUSTRIAL KINGDOM with those of the animal, vegetable, and mineral kingdoms. Political economy begins with labor; it is developed by labor; and all that does not come from labor, falling into the domain of pure utility,--that is, into the category of things submitted to man's action, but not yet rendered exchangeable by labor,--remains radically foreign to political economy. Monopoly itself, wholly established as it is by a pure act of collective will, does not change these relations at all, since, according to history, and according to the written law, and according to economic theory, monopoly exists, or is reputed to exist, only after labor's appearance.
Say's doctrine, therefore, is unassailable. Relatively to the man of enterprise, whose specialty always supposes other manufacturers cooperating with him, profit is what remains of the value produced after deducting the values consumed, among which must be included the salary of the man of enterprise,--in other words, his wages. Relatively to society, which contains all possible specialties, net product is identical with gross product.
But there is a point the explanation of which I have vainly sought in Say and in the other economists,--to wit, how the reality and legitimacy of net product is established. For it is plain that, in order to cause the disappearance of net product, it would suffice to increase the wages of the workmen and the price of the values consumed, the selling-price remaining the same. So that, there being nothing seemingly to distinguish net product from a sum withheld in paying wages or, what amounts to the same thing, from an assessment laid upon the consumer in advance, net product has every appearance of an extortion effected by force and without the least show of right.
This difficulty has been solved in advance in our theory of the proportionality of values.
According to this theory, every exploiter of a machine, of an idea, or of capital should be considered as a man who increases with equal outlay the amount of a certain kind of products, and consequently increases the social wealth by economizing time. The principle of the legitimacy of the net product lies, then, in the processes previously in use: if the new device succeeds, there will be a surplus of values, and consequently a profit,--that is, net product; if the enterprise rests on a false basis, there will be a deficit in the gross product, and in the long run failure and bankruptcy. Even in the case--and it is the most frequent-- where there is no innovation on the part of the man of enterprise, the rule of net product remains applicable, for the success of an industry depends upon the way in which it is carried on. Now, it being in accordance with the nature of monopoly that the risk and peril of every enterprise should be taken by the initiator, it follows that the net product belongs to him by the most sacred title recognized among men,-- labor and intelligence.
It is useless to recall the fact that the net product is often exaggerated, either by fraudulently secured reductions of wages or in some other way. These are abuses which proceed, not from the principle, but from human cupidity, and which remain outside the domain of the theory. For the rest, I have shown, in discussing the constitution of value (Chapter II., % 2): 1, how the net product can never exceed the difference resulting from inequality of the means of production; 2, how the profit which society reaps from each new invention is incomparably greater than that of its originator. As these points have been exhausted once for all, I will not go over them again; I will simply remark that, by industrial progress, the net product of the ingenious tends steadily to decrease, while, on the other hand, their comfort increases, as the concentric layers which make up the trunk of a tree become thinner as the tree grows and as they are farther removed from the centre.
By the side of net product, the natural reward of the laborer, I have pointed out as one of the happiest effects of monopoly the CAPITALIZATION of values, from which is born another sort of profit,--namely, INTEREST, or the hire of capital. As for RENT, although it is often confounded with interest, and although, in ordinary language, it is included with profit and interest under the common expression REVENUE, it is a different thing from interest; it is a consequence, not of monopoly, but of property; it depends on a special theory., of which we will speak in its place.
What, then, is this reality, known to all peoples, and nevertheless still so badly defined, which is called interest or the price of a loan, and which gives rise to the fiction of the productivity of capital?
Everybody knows that a contractor, when he calculates his costs of production, generally divides them into three classes: 1, the values consumed and services paid for; 2, his personal salary; 3, recovery of his capital with interest. From this last class of costs is born the distinction between contractor and capitalist, although these two titles always express but one faculty, monopoly.
Thus an industrial enterprise which yields only interest on capital and nothing for net product, is an insignificant enterprise, which results only in a transformation of values without adding anything to wealth,-- an enterprise, in short, which has no further reason for existence and is immediately abandoned. Why is it, then, that this interest on capital is not regarded as a sufficient supplement of net product? Why is it not itself the net product?
Here again the philosophy of the economists is wanting. To defend usury they have pretended that capital was productive, and they have changed a metaphor into a reality. The anti-proprietary socialists have had no difficulty in overturning their sophistry; and through this controversy the theory of capital has fallen into such disfavor that today, in the minds of the people, CAPITALIST and IDLER are synonymous terms. Certainly it is not my intention to retract what I myself have maintained after so many others, or to rehabilitate a class of citizens which so strangely misconceives its duties: but the interests of science and of the proletariat itself oblige me to complete my first assertions and maintain true principles.
1. All production is effected with a view to consumption,--that is, to enjoyment. In society the correlative terms production and consumption, like net product and gross product, designate identically the same thing. If, then, after the laborer has realized a net product, instead of using it to increase his comfort, he should confine himself to his wages and steadily apply his surplus to new production, as so many people do who earn only to buy, production would increase indefinitely, while comfort and, reasoning from the standpoint of society, population would remain unchanged. Now, interest on capital which has been invested in an industrial enterprise and which has been gradually formed by the accumulation of net product, is a sort of compromise between the necessity of increasing production, on the one hand, and, on the other, that of increasing comfort; it is a method of reproducing and consuming the net product at the same time. That is why certain industrial societies pay their stockholders a dividend even before the enterprise has yielded anything. Life is short, success comes slowly; on the one hand labor commands, on the other man wishes to enjoy. To meet all these exigencies the net product shall be devoted to production, but meantime (inter-ea, inter-esse)--that is, while waiting for the new product--the capitalist shall enjoy.
Thus, as the amount of net product marks the progress of wealth, interest on capital, without which net product would be useless and would not even exist, marks the progress of comfort. Whatever the form of government which may be established among men; whether they live in monopoly or in communism; whether each laborer keeps his account by credit and debit, or has his labor and pleasure parcelled out to him by the community,--the law which we have just disengaged will always be fulfilled. Our interest accounts do nothing else than bear witness to it.
2. Values created by net product are classed as savings and capitalized in the most highly exchangeable form, the form which is freest and least susceptible of depreciation,--in a word, the form of specie, the only constituted value. Now, if capital leaves this state of freedom and ENGAGES ITSELF,--that is, takes the form of machines, buildings, etc.,--it will still be susceptible of exchange, but much more exposed than before to the oscillations of supply and demand. Once engaged, it cannot be DISENGAGED without difficulty; and the sole resource of its owner will be exploitation. Exploitation alone is capable of maintaining engaged capital at its nominal value; it may increase it, it may diminish it. Capital thus transformed is as if it had been risked in a maritime enterprise: the interest is the insurance premium paid on the capital. And this premium will be greater or less according to the scarcity or abundance of capital.
Later a distinction will also be established between the insurance premium and interest on capital, and new facts will result from this subdivision: thus the history of humanity is simply a perpetual distinction of the mind's concepts.
3. Not only does interest on capital cause the laborer to enjoy the fruit of his toil and insure his savings, but--and this is the most marvellous effect of interest--while rewarding the producer, it obliges him to labor incessantly and never stop.
If a contractor is his own capitalist, it may happen that he will content himself with a profit equal to the interest on his investment: but in that case it is certain that his industry is no longer making progress and consequently is suffering. This we see when the capitalist is distinct from the contractor: for then, after the interest is paid, the manufacturer's profit is absolutely nothing; his industry becomes a perpetual peril to him, from which it is important that he should free himself as soon as possible. For as society's comfort must develop in an indefinite progression, so the law of the producer is that he should continually realize a surplus: otherwise his existence is precarious, monotonous, fatiguing. The interest due to the capitalist by the producer therefore is like the lash of the planter cracking over the head of the sleeping slave; it is the voice of progress crying: "On, on! Toil, toil!" Man's destiny pushes him to happiness: that is why it denies him rest.
4. Finally, interest on money is the condition of capital's circulation and the chief agent of industrial solidarity. This aspect has been seized by all the economists, and we shall give it special treatment when we come to deal with credit.
I have proved, and better, I imagine, than it has ever been proved before: That monopoly is necessary, since it is the antagonism of competition; That it is essential to society, since without it society would never have emerged from the primeval forests and without it would rapidly go backwards; Finally, that it is the crown of the producer, when, whether by net product or by interest on the capital which he devotes to production, it brings to the monopolist that increase of comfort which his foresight and his efforts deserve.
Shall we, then, with the economists, glorify monopoly, and consecrate it to the benefit of well-secured conservatives? I am willing, provided they in turn will admit my claims in what is to follow, as I have admitted theirs in what has preceded.
% 2.--The disasters in labor and the perversion of ideas caused by monopoly.
Like competition, monopoly implies a contradiction in its name and its definition. In fact, since consumption and production are identical things in society, and since selling is synonymous with buying, whoever says privilege of sale or exploitation necessarily says privilege of consumption and purchase: which ends in the denial of both. Hence a prohibition of consumption as well as of production laid by monopoly upon the wage-receivers. Competition was civil war, monopoly is the massacre of the prisoners.
These various propositions are supported by all sorts of evidence,-- physical, algebraic, and metaphysical. What I shall add will be only the amplified exposition: their simple announcement demonstrates them.
Every society considered in its economic relations naturally divides itself into capitalists and laborers, employers and wage- receivers, distributed upon a scale whose degrees mark the income of each, whether this income be composed of wages, profit, interest, rent, or dividends.
From this hierarchical distribution of persons and incomes it follows that Say's principle just referred to: IN A NATION THE NET PRODUCT IS EQUAL TO THE GROSS PRODUCT, is no longer true, since, in consequence of monopoly, the SELLING PRICE is much higher than the COST PRICE. Now, as it is the cost price nevertheless which must pay the selling price, since a nation really has no market but itself, it follows that exchange, and consequently circulation and life, are impossible.
In France, twenty millions of laborers, engaged in all the branches of science, art, and industry, produce everything which is useful to man. Their aggregate annual wages amount, it is estimated, to twenty thousand millions; but, in consequence of the profit (net product and interest) accruing to monopolists, twenty-five thousand millions must be paid for their products. Now, as the nation has no other buyers than its wage- receivers and wage-payers, and as the latter do not pay for the former, and as the selling-price of merchandise is the same for all, it is clear that, to make circulation possible, the laborer would have to pay five for that for which he has received but four.--What is Property: Chapter IV.[17] [17] A comparison of this passage, as given here, with the English translation of "What is Property" will show a marked variation in the language. This is explained by the fact that the author, in reproducing the passage, modified it considerably.
The same is true of another quotation from the same work which will be found a few pages farther on.--Translator.
This, then, is the reason why wealth and poverty are correlative, inseparable, not only in idea, but in fact; this is the reason why they exist concurrently; this is what justifies the pretension of the wage- receiver that the rich man possesses no more than the poor man, except that of which the latter has been defrauded. After the monopolist has drawn up his account of cost, profit, and interest, the wage-paid consumer draws up his; and he finds that, though promised wages stated in the contract as one hundred, he has really been given but seventy- five. Monopoly, therefore, puts the wage-receivers into bankruptcy, and it is strictly true that it lives upon the spoils.
Six years ago I brought out this frightful contradiction: why has it not been thundered through the press? Why have no teachers of renown warned public opinion? Why have not those who demand political rights for the workingman proclaimed that he is robbed?
Why have the economists kept silent? Why?
Our revolutionary democracy is so noisy only because it fears revolutions: but, by ignoring the danger which it dares not look in the face, it succeeds only in increasing it. "We resemble," says M. Blanqui, "firemen who increase the quantity of steam at the same time that they place weights on the safety-valve." Victims of monopoly, console yourselves! If your tormentors will not listen, it is because Providence has resolved to strike them: Non audierunt, says the Bible, quia Deus volebat occidere eos.
Sale being unable to fulfil the conditions of monopoly, merchandise accumulates; labor has produced in a year what its wages will not allow it to consume in less than fifteen months: hence it must remain idle one-fourth of the year. But, if it remains idle, it earns nothing: how will it ever buy? And if the monopolist cannot get rid of his products, how will his enterprise endure? Logical impossibility multiplies around the workshop; the facts which translate it are everywhere.
"The hosiers of England," says Eugene Buret, "had come to the point where they did not eat oftener than every other day. This state of things lasted eighteen months." And he cites a multitude of similar cases.
But the distressing feature in the spectacle of monopoly's effects is the sight of the unfortunate workingmen blaming each other for their misery and imagining that by uniting and supporting each other they will prevent the reduction of wages.
"The Irish," says an observer, "have given a disastrous lesson to the working classes of Great Britain...They have taught our laborers the fatal secret of confining their needs to the maintenance of animal life alone, and of contenting themselves, like savages, with the minimum of the means of subsistence sufficient to prolong life...Instructed by this fatal example, yielding partly to necessity, the working classes have lost that laudable pride which led them to furnish their houses properly and to multiply about them the decent conveniences which contribute to happiness."
I have never read anything more afflicting and more stupid. And what would you have these workingmen do? The Irish came: should they have been massacred? Wages were reduced: should death have been accepted in their stead? Necessity commanded, as you say yourselves. Then followed the interminable hours, disease, deformity, degradation, debasement, and all the signs of industrial slavery: all these calamities are born of monopoly and its sad predecessors,--competition, machinery, and the division of labor: and you blame the Irish!
At other times the workingmen blame their luck, and exhort themselves to patience: this is the counterpart of the thanks which they address to Providence, when labor is abundant and wages are sufficient.
I find in an article published by M. Leon Faucher, in the "Journal des Economistes" (September, 1845), that the English workingmen lost some time ago the habit of combining, which is surely a progressive step on which they are only to be congratulated, but that this improvement in the morale of the workingmen is due especially to their economic instruction.
"It is not upon the manufacturers," cried a spinner at the meeting in Bolton, "that wages depend. In periods of depression the employers, so to speak, are only the lash with which necessity is armed; and whether they will or no, they have to strike. The regulative principle is the relation of supply to demand; and the employers have not this power...Let us act prudently, then; let us learn to be resigned to bad luck and to make the most of good luck: by seconding the progress of our industry, we shall be useful not only to ourselves, but to the entire country." [Applause.]
Very good: well-trained, model workmen, these! What men these spinners must be that they should submit without complaint to the LASH OF NECESSITY, because the regulative principle of wages is SUPPLY AND DEMAND! M. Leon Faucher adds with a charming simplicity: English workingmen are fearless reasoners. Give them a FALSE PRINCIPLE, and they will push it mathematically to absurdity, without stopping or getting frightened, as if they were marching to the triumph of the truth.
For my part, I hope that, in spite of all the efforts of economic propagandism, French workingmen will never become reasoners of such power. SUPPLY AND DEMAND, as well as the LASH OF NECESSITY, has no longer any hold upon their minds. This was the one misery that England lacked: it will not cross the channel.
By the combined effect of division, machinery, net product, and interest, monopoly extends its conquests in an increasing progression; its developments embrace agriculture as well as commerce and industry, and all sorts of products. Everybody knows the phrase of Pliny upon the landed monopoly which determined the fall of Italy, latifundia perdidere Italiam. It is this same monopoly which still impoverishes and renders uninhabitable the Roman Campagna and which forms the vicious circle in which England moves convulsively; it is this monopoly which, established by violence after a war of races, produces all the evils of Ireland, and causes so many trials to O'Connell, powerless, with all his eloquence, to lead his repealers through this labyrinth. Grand sentiments and rhetoric are the worst remedy for social evils: it would be easier for O'Connell to transport Ireland and the Irish from the North Sea to the Australian Ocean than to overthrow with the breath of his harangues the monopoly which holds them in its grasp. General communions and sermons will do no more: if the religious sentiment still alone maintains the morale of the Irish people, it is high time that a little of that profane science, so much disdained by the Church, should come to the aid of the lambs which its crook no longer protects.
The invasion of commerce and industry by monopoly is too well known to make it necessary that I should gather proofs: moreover, of what use is it to argue so much when results speak so loudly? E. Buret's description of the misery of the working-classes has something fantastic about it, which oppresses and frightens you. There are scenes in which the imagination refuses to believe, in spite of certificates and official reports. Couples all naked, hidden in the back of an unfurnished alcove, with their naked children; entire populations which no longer go to church on Sunday, because they are naked; bodies kept a week before they are buried, because the deceased has left neither a shroud in which to lay him out nor the wherewithal to pay for the coffin and the undertaker (and the bishop enjoys an income of from four to five hundred thousand francs); families heaped up over sewers, living in rooms occupied by pigs, and beginning to rot while yet alive, or dwelling in holes, like Albinoes; octogenarians sleeping naked on bare boards; and the virgin and the prostitute expiring in the same nudity: everywhere despair, consumption, hunger, hunger!.. And this people, which expiates the crimes of its masters, does not rebel! No, by the flames of Nemesis! when a people has no vengeance left, there is no longer any Providence for it.
Exterminations en masse by monopoly have not yet found their poets. Our rhymers, strangers to the things of this world, without bowels for the proletaire, continue to breathe to the moon their melancholy DELIGHTS. What a subject for MEDITATIONS, nevertheless, is the miseries engendered by monopoly!
It is Walter Scott who says: Formerly, though many years since, each villager had his cow and his pig, and his yard around his house. Where a single farmer cultivates today, thirty small farmers lived formerly; so that for one individual, himself alone richer, it is true, than the thirty farmers of old times, there are now twenty-nine wretched day-laborers, without employment for their minds and arms, and whose number is too large by half. The only useful function which they fulfil is to pay, WHEN THEY CAN, a rent of sixty shillings a year for the huts in which they dwell.[18] [18] This extract from Scott, as well as that from a parliamentary report cited a few paragraphs later, is here translated from the French, and presumably differs in form somewhat, therefore, from the original English.--Translator.
A modern ballad, quoted by E. Buret, sings the solitude of monopoly: Le rouet est silencieux dans la vallee: C'en est fait des sentiments de famille. Sur un peu de fumee le vieil aieul Etend ses mains pales; et le foyer vide Est aussi desole que son coeur.[19] [19] The spinning-wheel is silent in the valley: family feelings are at an end. Over a little smoke the aged grandsire spreads his pale hands; and the empty hearth is as desolate as his heart.--Translator.
The reports made to parliament rival the novelist and the poet: The inhabitants of Glensheil, in the neighborhood of the valley of Dundee, were formerly distinguished from all their neighbors by the superiority of their physical qualities. The men were of high stature, robust, active, and courageous; the women comely and graceful. Both sexes possessed an extraordinary taste for poetry and music. Now, alas! a long experience of poverty, prolonged privation of sufficient food and suitable clothing, have profoundly deteriorated this race, once so remarkably fine.
This is a notable instance of the inevitable degradation pointed out by us in the two chapters on division of labor and machinery.
And our litterateurs busy themselves with the pretty things of the past, as if the present were not adequate to their genius! The first among them to venture on these infernal paths has created a scandal in the coterie! Cowardly parasites, vile venders of prose and verse, all worthy of the wages of Marsyas! Oh! if your punishment were to last as long as my contempt, you would be forced to believe in the eternity of hell.
Monopoly, which just now seemed to us so well founded in justice, is the more unjust because it not only makes wages illusory, but deceives the workman in the very valuation of his wages by assuming in relation to him a false title, a false capacity.
M. de Sismondi, in his "Studies of Social Economy," observes somewhere that, when a banker delivers to a merchant bank-notes in exchange for his values, far from giving credit to the merchant, he receives it, on the contrary, from him.
"This credit," adds M. de Sismondi, "is in truth so short that the merchant scarcely takes the trouble to inquire whether the banker is worthy, especially as the former asks credit instead of granting it."
So, according to M. de Sismondi, in the issue of bank paper, the functions of the merchant and the banker are inverted: the first is the creditor, and the second is the credited.