But the worthy Malthus is mistaken in regard to the fact. Yes; land has the power of producing more than is needed by those who cultivate it, if by CULTIVATORS is meant tenants only. The tailor also makes more clothes than he wears, and the cabinet-maker more furniture than he uses. But, since the various professions imply and sustain one another, not only the farmer, but the followers of all arts and trades--even to the doctor and the school-teacher--are, and ought to be, regarded as CULTIVATORS OF THE LAND. Malthus bases farm-rent upon the principle of commerce. Now, the fundamental law of commerce being equivalence of the products exchanged, any thing which destroys this equivalence violates the law. There is an error in the estimate which needs to be corrected.
Buchanan--a commentator on Smith--regarded farm-rent as the result of a monopoly, and maintained that labor alone is productive. Consequently, he thought that, without this monopoly, products would rise in price; and he found no basis for farm-rent save in the civil law. This opinion is a corollary of that which makes the civil law the basis of property. But why has the civil law--which ought to be the written expression of justice--authorized this monopoly? Whoever says monopoly, necessarily excludes justice. Now, to say that farm-rent is a monopoly sanctioned by the law, is to say that injustice is based on justice,--a contradiction in terms.
Say answers Buchanan, that the proprietor is not a monopolist, because a monopolist "is one who does not increase the utility of the merchandise which passes through his hands."
How much does the proprietor increase the utility of his tenant's products? Has he ploughed, sowed, reaped, mowed, winnowed, weeded? These are the processes by which the tenant and his employees increase the utility of the material which they consume for the purpose of reproduction.
"The landed proprietor increases the utility of products by means of his implement, the land. This implement receives in one state, and returns in another the materials of which wheat is composed. The action of the land is a chemical process, which so modifies the material that it multiplies it by destroying it. The soil is then a producer of utility; and when it [the soil?] asks its pay in the form of profit, or farm rent, for its proprietor, it at the same time gives something to the consumer in exchange for the amount which the consumer pays it. It gives him a produced utility; and it is the production of this utility which warrants us in calling land productive, as well as labor."
Let us clear up this matter.
The blacksmith who manufactures for the farmer implements of husbandry, the wheelwright who makes him a cart, the mason who builds his barn, the carpenter, the basket-maker, &c.,--all of whom contribute to agricultural production by the tools which they provide,--are producers of utility; consequently, they are entitled to a part of the products.
"Undoubtedly," says Say; "but the land also is an implement whose service must be paid for, then..."
I admit that the land is an implement; but who made it? Did the proprietor? Did he--by the efficacious virtue of the right of property, by this MORAL QUALITY infused into the soil--endow it with vigor and fertility? Exactly there lies the monopoly of the proprietor; in the fact that, though he did not make the implement, he asks pay for its use. When the Creator shall present himself and claim farm-rent, we will consider the matter with him; or even when the proprietor--his pretended representative--shall exhibit his power-of-attorney.
"The proprietor's service," adds Say, "is easy, I admit."
It is a frank confession.
"But we cannot disregard it. Without property, one farmer would contend with another for the possession of a field without a proprietor, and the field would remain uncultivated..."
Then the proprietor's business is to reconcile farmers by robbing them. O logic! O justice! O the marvellous wisdom of economists! The proprietor, if they are right, is like Perrin-Dandin who, when summoned by two travellers to settle a dispute about an oyster, opened it, gobbled it, and said to them:-- "The Court awards you each a shell."
Could any thing worse be said of property?
Will Say tell us why the same farmers, who, if there were no proprietors, would contend with each other for possession of the soil, do not contend to-day with the proprietors for this possession? Obviously, because they think them legitimate possessors, and because their respect for even an imaginary right exceeds their avarice. I proved, in Chapter II., that possession is sufficient, without property, to maintain social order. Would it be more difficult, then, to reconcile possessors without masters than tenants controlled by proprietors? Would laboring men, who respect--much to their own detriment--the pretended rights of the idler, violate the natural rights of the producer and the manufacturer? What! if the husbandman forfeited his right to the land as soon as he ceased to occupy it, would he become more covetous? And would the impossibility of demanding increase, of taxing another's labor, be a source of quarrels and law-suits? The economists use singular logic. But we are not yet through. Admit that the proprietor is the legitimate master of the land.
"The land is an instrument of production," they say. That is true. But when, changing the noun into an adjective, they alter the phrase, thus, "The land is a productive instrument," they make a wicked blunder.
According to Quesnay and the early economists, all production comes from the land. Smith, Ricardo, and de Tracy, on the contrary, say that labor is the sole agent of production. Say, and most of his successors, teach that BOTH land AND labor AND capital are productive. The latter constitute the eclectic school of political economy. The truth is, that NEITHER land NOR labor NOR capital is productive. Production results from the co-operation of these three equally necessary elements, which, taken separately, are equally sterile.
Political economy, indeed, treats of the production, distribution, and consumption of wealth or values. But of what values? Of the values by man, that he may appropriate it to his own use, and not at all of Nature's spontaneous productions. Man's labor consists in a simple laying on of hands. When he has taken that trouble, he has produced a value. Until then, the salt of the sea, the water of the springs, the grass of the fields, and the trees of the forests are to him as if they were not. The sea, without the fisherman and his line, supplies no fish. The forest, without the wood-cutter and his axe, furnishes neither fuel nor timber. The meadow, without the mower, yields neither hay nor aftermath. Nature is a vast mass of material to be cultivated and converted into products; but Nature produces nothing for herself: in the economical sense, her products, in their relation to man, are not yet products.
Capital, tools, and machinery are likewise unproductive. The hammer and the anvil, without the blacksmith and the iron, do not forge. The mill, without the miller and the grain, does not grind, &c. Bring tools and raw material together; place a plough and some seed on fertile soil; enter a smithy, light the fire, and shut up the shop,--you will produce nothing. The following remark was made by an economist who possessed more good sense than most of his fellows: "Say credits capital with an active part unwarranted by its nature; left to itself, it is an idle tool." (J. Droz: Political Economy.)
Finally, labor and capital together, when unfortunately combined, produce nothing. Plough a sandy desert, beat the water of the rivers, pass type through a sieve,--you will get neither wheat, nor fish, nor books. Your trouble will be as fruitless as was the immense labor of the army of Xerxes; who, as Herodotus says, with his three million soldiers, scourged the Hellespont for twenty-four hours, as a punishment for having broken and scattered the pontoon bridge which the great king had thrown across it.
Tools and capital, land and labor, considered individually and abstractly, are not, literally speaking, productive. The proprietor who asks to be rewarded for the use of a tool, or the productive power of his land, takes for granted, then, that which is radically false; namely, that capital produces by its own effort,--and, in taking pay for this imaginary product, he literally receives something for nothing.
OBJECTION.--But if the blacksmith, the wheelwright, all manufacturers in short, have a right to the products in return for the implements which they furnish; and if land is an implement of production,--why does not this implement entitle its proprietor, be his claim real or imaginary, to a portion of the products; as in the case of the manufacturers of ploughs and wagons?
REPLY.--Here we touch the heart of the question, the mystery of property; which we must clear up, if we would understand any thing of the strange effects of the right of increase.
He who manufactures or repairs the farmer's tools receives the price ONCE, either at the time of delivery, or in several payments; and when this price is once paid to the manufacturer, the tools which he has delivered belong to him no more. Never does he claim double payment for the same tool, or the same job of repairs. If he annually shares in the products of the farmer, it is owing to the fact that he annually makes something for the farmer.
The proprietor, on the contrary, does not yield his implement; eternally he is paid for it, eternally he keeps it.
In fact, the rent received by the proprietor is not intended to defray the expense of maintaining and repairing the implement; this expense is charged to the borrower, and does not concern the proprietor except as he is interested in the preservation of the article. If he takes it upon himself to attend to the repairs, he takes care that the money which he expends for this purpose is repaid.
This rent does not represent the product of the implement, since of itself the implement produces nothing; we have just proved this, and we shall prove it more clearly still by its consequences.
Finally, this rent does not represent the participation of the proprietor in the production; since this participation could consist, like that of the blacksmith and the wheelwright, only in the surrender of the whole or a part of his implement, in which case he would cease to be its proprietor, which would involve a contradiction of the idea of property.
Then, between the proprietor and his tenant there is no exchange either of values or services; then, as our axiom says, farm-rent is real increase,--an extortion based solely upon fraud and violence on the one hand, and weakness and ignorance upon the other. PRODUCTS say the economists, ARE BOUGHT ONLY BY PRODUCTS. This maxim is property's condemnation. The proprietor, producing neither by his own labor nor by his implement, and receiving products in exchange for nothing, is either a parasite or a thief. Then, if property can exist only as a right, property is impossible.
COROLLARIES.--1. The republican constitution of 1793, which defined property as "the right to enjoy the fruit of one's labor," was grossly mistaken. It should have said, "Property is the right to enjoy and dispose at will of another's goods,--the fruit of another's industry and labor."
2. Every possessor of lands, houses, furniture, machinery, tools, money, &c., who lends a thing for a price exceeding the cost of repairs (the repairs being charged to the lender, and representing products which he exchanges for other products), is guilty of swindling and extortion. In short, all rent received (nominally as damages, but really as payment for a loan) is an act of property,--a robbery.
HISTORICAL COMMENT.--The tax which a victorious nation levies upon a conquered nation is genuine farm-rent. The seigniorial rights abolished by the Revolution of 1789,--tithes, mortmain, statute-labor, &c.,--were different forms of the rights of property; and they who under the titles of nobles, seigneurs, prebendaries, &c. enjoyed these rights, were neither more nor less than proprietors. To defend property to-day is to condemn the Revolution.
SECOND PROPOSITION.
Property is impossible because wherever it exists Production costs more than it is worth.
The preceding proposition was legislative in its nature; this one is economical. It serves to prove that property, which originates in violence, results in waste.
"Production," says Say, "is exchange on a large scale. To render the exchange productive the value of the whole amount of service must be balanced by the value of the product. If this condition is not complied with, the exchange is unequal; the producer gives more than he receives."
Now, value being necessarily based upon utility, it follows that every useless product is necessarily valueless,--that it cannot be exchanged; and, consequently, that it cannot be given in payment for productive services.
Then, though production may equal consumption, it never can exceed it; for there is no real production save where there is a production of utility, and there is no utility save where there is a possibility of consumption. Thus, so much of every product as is rendered by excessive abundance inconsumable, becomes useless, valueless, unexchangeable,--consequently, unfit to be given in payment for any thing whatever, and is no longer a product.
Consumption, on the other hand, to be legitimate,--to be true consumption,--must be reproductive of utility; for, if it is unproductive, the products which it destroys are cancelled values--things produced at a pure loss; a state of things which causes products to depreciate in value. Man has the power to destroy, but he consumes only that which he reproduces. Under a right system of economy, there is then an equation between production and consumption.
These points established, let us suppose a community of one thousand families, enclosed in a territory of a given circumference, and deprived of foreign intercourse. Let this community represent the human race, which, scattered over the face of the earth, is really isolated. In fact, the difference between a community and the human race being only a numerical one, the economical results will be absolutely the same in each case.
Suppose, then, that these thousand families, devoting themselves exclusively to wheat-culture, are obliged to pay to one hundred individuals, chosen from the mass, an annual revenue of ten per cent. on their product. It is clear that, in such a case, the right of increase is equivalent to a tax levied in advance upon social production. Of what use is this tax?
It cannot be levied to supply the community with provisions, for between that and farm-rent there is nothing in common; nor to pay for services and products,--for the proprietors, laboring like the others, have labored only for themselves. Finally, this tax is of no use to its recipients who, having harvested wheat enough for their own consumption, and not being able in a society without commerce and manufactures to procure any thing else in exchange for it, thereby lose the advantage of their income.
In such a society, one-tenth of the product being inconsumable, one-tenth of the labor goes unpaid--production costs more than it is worth.
Now, change three hundred of our wheat-producers into artisans of all kinds: one hundred gardeners and wine-growers, sixty shoemakers and tailors, fifty carpenters and blacksmiths, eighty of various professions, and, that nothing may be lacking, seven school-masters, one mayor, one judge, and one priest; each industry furnishes the whole community with its special product. Now, the total production being one thousand, each laborer's consumption is one; namely, wheat, meat, and grain, 0.7; wine and vegetables, 0.1; shoes and clothing, 0.06; iron-work and furniture, 0.05; sundries, 0.08; instruction, 0.007; administration, 0.002; mass, 0.001, Total 1.
But the community owes a revenue of ten per cent.; and it matters little whether the farmers alone pay it, or all the laborers are responsible for it,--the result is the same. The farmer raises the price of his products in proportion to his share of the debt; the other laborers follow his example. Then, after some fluctuations, equilibrium is established, and all pay nearly the same amount of the revenue. It would be a grave error to assume that in a nation none but farmers pay farm-rent--the whole nation pays it.
I say, then, that by this tax of ten per cent. each laborer's consumption is reduced as follows: wheat, 0.63; wine and vegetables, 0.09; clothing and shoes, 0.054; furniture and iron-work, 0.045; other products, 0.072; schooling, 0.0063; administration, 0.0018; mass, 0.0009. Total 0.9.
The laborer has produced 1; he consumes only 0.9. He loses, then, one-tenth of the price of his labor; his production still costs more than it is worth. On the other hand, the tenth received by the proprietors is no less a waste; for, being laborers themselves, they, like the others, possess in the nine-tenths of their product the wherewithal to live: they want for nothing. Why should they wish their proportion of bread, wine, meat, clothes, shelter, &c., to be doubled, if they can neither consume nor exchange them? Then farm-rent, with them as with the rest of the laborers, is a waste, and perishes in their hands. Extend the hypothesis, increase the number and variety of the products, you still have the same result.
Hitherto, we have considered the proprietor as taking part in the production, not only (as Say says) by the use of his instrument, but in an effective manner and by the labor of his hands. Now, it is easy to see that, under such circumstances, property will never exist. What happens?
The proprietor--an essentially libidinous animal, without virtue or shame--is not satisfied with an orderly and disciplined life. He loves property, because it enables him to do at leisure what he pleases and when he pleases. Having obtained the means of life, he gives himself up to trivialities and indolence; he enjoys, he fritters away his time, he goes in quest of curiosities and novel sensations. Property--to enjoy itself--has to abandon ordinary life, and busy itself in luxurious occupations and unclean enjoyments.
Instead of giving up a farm-rent, which is perishing in their hands, and thus lightening the labor of the community, our hundred proprietors prefer to rest. In consequence of this withdrawal,--the absolute production being diminished by one hundred, while the consumption remains the same,--production and consumption seem to balance. But, in the first place, since the proprietors no longer labor, their consumption is, according to economical principles, unproductive; consequently, the previous condition of the community--when the labor of one hundred was rewarded by no products--is superseded by one in which the products of one hundred are consumed without labor. The deficit is always the same, whichever the column of the account in which it is expressed. Either the maxims of political economy are false, or else property, which contradicts them, is impossible.
The economists--regarding all unproductive consumption as an evil, as a robbery of the human race--never fail to exhort proprietors to moderation, labor, and economy; they preach to them the necessity of making themselves useful, of remunerating production for that which they receive from it; they launch the most terrible curses against luxury and laziness. Very beautiful morality, surely; it is a pity that it lacks common sense. The proprietor who labors, or, as the economists say, WHO MAKES HIMSELF USEFUL, is paid for this labor and utility; is he, therefore, any the less idle as concerns the property which he does not use, and from which he receives an income? His condition, whatever he may do, is an unproductive and FELONIOUS one; he cannot cease to waste and destroy without ceasing to be a proprietor.
But this is only the least of the evils which property engenders.
Society has to maintain some idle people, whether or no. It will always have the blind, the maimed, the insane, and the idiotic. It can easily support a few sluggards. At this point, the impossibilities thicken and become complicated.
THIRD PROPOSITION.
Property is impossible, because, with a given capital, Production is proportional to labor, not to property.
To pay a farm-rent of one hundred at the rate of ten per cent. of the product, the product must be one thousand; that the product may be one thousand, a force of one thousand laborers is needed. It follows, that in granting a furlough, as we have just done, to our one hundred laborer-proprietors, all of whom had an equal right to lead the life of men of income,--we have placed ourselves in a position where we are unable to pay their revenues. In fact, the productive power, which at first was one thousand, being now but nine hundred, the production is also reduced to nine hundred, one-tenth of which is ninety. Either, then, ten proprietors out of the one hundred cannot be paid,--provided the remaining ninety are to get the whole amount of their farm-rent,--or else all must consent to a decrease of ten per cent. For it is not for the laborer, who has been wanting in no particular, who has produced as in the past, to suffer by the withdrawal of the proprietor. The latter must take the consequences of his own idleness. But, then, the proprietor becomes poorer for the very reason that he wishes to enjoy; by exercising his right, he loses it; so that property seems to decrease and vanish in proportion as we try to lay hold of it,--the more we pursue it, the more it eludes our grasp. What sort of a right is that which is governed by numerical relations, and which an arithmetical calculation can destroy?
The laborer-proprietor received, first, as laborer, 0.9 in wages; second, as proprietor, 1 in farm-rent. He said to himself, "My farm-rent is sufficient; I have enough and to spare without my labor." And thus it is that the income upon which he calculated gets diminished by one-tenth,--he at the same time not even suspecting the cause of this diminution. By taking part in the production, he was himself the creator of this tenth which has vanished; and while he thought to labor only for himself, he unwittingly suffered a loss in exchanging his products, by which he was made to pay to himself one-tenth of his own farm-rent. Like every one else, he produced 1, and received but 0.9 If, instead of nine hundred laborers, there had been but five hundred, the whole amount of farm-rent would have been reduced to fifty; if there had been but one hundred, it would have fallen to ten. We may posit, then, the following axiom as a law of proprietary economy: INCREASE MUST DIMINISH AS THE NUMBER OF IDLERS AUGMENTS.
_ _This first result will lead us to another more surprising still. Its effect is to deliver us at one blow from all the evils of property, without abolishing it, without wronging proprietors, and by a highly conservative process.
We have just proved that, if the farm-rent in a community of one thousand laborers is one hundred, that of nine hundred would be ninety, that of eight hundred, eighty, that of one hundred, ten, &c. So that, in a community where there was but one laborer, the farm-rent would be but 0.1; no matter how great the extent and value of the land appropriated. Therefore, WITH A GIVEN LANDED CAPITAL, PRODUCTION IS PROPORTIONAL TO LABOR, NOT TO PROPERTY.
Guided by this principle, let us try to ascertain the maximum increase of all property whatever.
What is, essentially, a farm-lease? It is a contract by which the proprietor yields to a tenant possession of his land, in consideration of a portion of that which it yields him, the proprietor. If, in consequence of an increase in his household, the tenant becomes ten times as strong as the proprietor, he will produce ten times as much. Would the proprietor in such a case be justified in raising the farm-rent tenfold? His right is not, The more you produce, the more I demand. It is, The more I sacrifice, the more I demand. The increase in the tenant's household, the number of hands at his disposal, the resources of his industry,--all these serve to increase production, but bear no relation to the proprietor. His claims are to be measured by his own productive capacity, not that of others. Property is the right of increase, not a poll-tax. How could a man, hardly capable of cultivating even a few acres by himself, demand of a community, on the ground of its use of ten thousand acres of his property, ten thousand times as much as he is incapable of producing from one acre? Why should the price of a loan be governed by the skill and strength of the borrower, rather than by the utility sacrificed by the proprietor? We must recognize, then, this second economical law: INCREASE IS MEASURED BY A FRACTION OF THE PROPRIETORS PRODUCTION.
Now, this production, what is it? In other words, What can the lord and master of a piece of land justly claim to have sacrificed in lending it to a tenant?
The productive capacity of a proprietor, like that of any laborer, being one, the product which he sacrifices in surrendering his land is also one. If, then, the rate of increase is ten per cent., the maximum increase is 0.1.
But we have seen that, whenever a proprietor withdraws from production, the amount of products is lessened by 1. Then the increase which accrues to him, being equal to 0.1 while he remains among the laborers, will be equal after his withdrawal, by the law of the decrease of farm-rent, to 0.09. Thus we are led to this final formula: THE MAXIMUM INCOME OF A PROPRIETOR IS EQUAL TO THE SQUARE ROOT OF THE PRODUCT OF ONE LABORER (some number being agreed upon to express this product). THE DIMINUTION WHICH THIS INCOME SUFFERS, IF THE PROPRIETOR IS IDLE, IS EQUAL TO A FRACTION WHOSE NUMERATOR IS 1, AND WHOSE DENOMINATOR IS THE NUMBER WHICH EXPRESSES THE PRODUCT.
Thus the maximum income of an idle proprietor, or of one who labors in his own behalf outside of the community, figured at ten per cent. on an average production of one thousand francs per laborer, would be ninety francs. If, then, there are in France one million proprietors with an income of one thousand francs each, which they consume unproductively, instead of the one thousand millions which are paid them annually, they are entitled in strict justice, and by the most accurate calculation, to ninety millions only.
It is something of a reduction, to take nine hundred and ten millions from the burdens which weigh so heavily upon the laboring class! Nevertheless, the account is not finished, and the laborer is still ignorant of the full extent of his rights.
What is the right of increase when confined within just limits? A recognition of the right of occupancy. But since all have an equal right of occupancy, every man is by the same title a proprietor. Every man has a right to an income equal to a fraction of his product. If, then, the laborer is obliged by the right of property to pay a rent to the proprietor, the proprietor is obliged by the same right to pay the same amount of rent to the laborer; and, since their rights balance each other, the difference between them is zero.
_Scholium_.--If farm-rent is only a fraction of the supposed product of the proprietor, whatever the amount and value of the property, the same is true in the case of a large number of small and distinct proprietors. For, although one man may use the property of each separately, he cannot use the property of all at the same time.
To sum up. The right of increase, which can exist only within very narrow limits, defined by the laws of production, is annihilated by the right of occupancy. Now, without the right of increase, there is no property. Then property is impossible.
FOURTH PROPOSITION.
Property is impossible, because it is Homicide.
If the right of increase could be subjected to the laws of reason and justice, it would be reduced to an indemnity or reward whose MAXIMUM never could exceed, for a single laborer, a certain fraction of that which he is capable of producing. This we have just shown. But why should the right of increase--let us not fear to call it by its right name, the right of robbery--be governed by reason, with which it has nothing in common? The proprietor is not content with the increase allotted him by good sense and the nature of things: he demands ten times, a hundred times, a thousand times, a million times as much. By his own labor, his property would yield him a product equal only to one; and he demands of society, no longer a right proportional to his productive capacity, but a per capita tax. He taxes his fellows in proportion to their strength, their number, and their industry. A son is born to a farmer. "Good!" says the proprietor; "one more chance for increase!" By what process has farm-rent been thus changed into a poll-tax? Why have our jurists and our theologians failed, with all their shrewdness, to check the extension of the right of increase?
The proprietor, having estimated from his own productive capacity the number of laborers which his property will accommodate, divides it into as many portions, and says: "Each one shall yield me revenue." To increase his income, he has only to divide his property. Instead of reckoning the interest due him on his labor, he reckons it on his capital; and, by this substitution, the same property, which in the hands of its owner is capable of yielding only one, is worth to him ten, a hundred, a thousand, a million. Consequently, he has only to hold himself in readiness to register the names of the laborers who apply to him--his task consists in drafting leases and receipts.
Not satisfied with the lightness of his duties, the proprietor does not intend to bear even the deficit resulting from his idleness; he throws it upon the shoulders of the producer, of whom he always demands the same reward. When the farm-rent of a piece of land is once raised to its highest point, the proprietor never lowers it; high prices, the scarcity of labor, the disadvantages of the season, even pestilence itself, have no effect upon him--why should he suffer from hard times when he does not labor?
Here commences a new series of phenomena.
Say--who reasons with marvellous clearness whenever he assails taxation, but who is blind to the fact that the proprietor, as well as the tax-gatherer, steals from the tenant, and in the same manner--says in his second letter to Malthus:-- "If the collector of taxes and those who employ him consume one-sixth of the products, they thereby compel the producers to feed, clothe, and support themselves on five-sixths of what they produce. They admit this, but say at the same time that it is possible for each one to live on five-sixths of what he produces.
"I admit that, if they insist upon it; but I ask if they believe that the producer would live as well, in case they demanded of him, instead of one-sixth, two-sixths, or one-third, of their products? No; but he would still live. Then I ask whether he would still live, in case they should rob him of two-thirds,...then three-quarters? But I hear no reply."
If the master of the French economists had been less blinded by his proprietary prejudices, he would have seen that farm-rent has precisely the same effect.
Take a family of peasants composed of six persons,--father, mother, and four children,--living in the country, and cultivating a small piece of ground. Let us suppose that by hard labor they manage, as the saying is, to make both ends meet; that, having lodged, warmed, clothed, and fed themselves, they are clear of debt, but have laid up nothing. Taking the years together, they contrive to live. If the year is prosperous, the father drinks a little more wine, the daughters buy themselves a dress, the sons a hat; they eat a little cheese, and, occasionally, some meat. I say that these people are on the road to wreck and ruin.
For, by the third corollary of our axiom, they owe to themselves the interest on their own capital. Estimating this capital at only eight thousand francs at two and a half per cent., there is an annual interest of two hundred francs to be paid. If, then, these two hundred francs, instead of being subtracted from the gross product to be saved and capitalized, are consumed, there is an annual deficit of two hundred francs in the family assets; so that at the end of forty years these good people, without suspecting it, will have eaten up their property and become bankrupt!
This result seems ridiculous--it is a sad reality.