6。Oneoftheweakestpointsoftechnicaleducationisthatitdoesnoteducatethesenseofproportionandthedesireforsimplicityofdetail。TheEnglish，andtoanevengreaterextent，theAmericans，haveacquiredinactualbusinessthefacultyofrejectingintricaciesinmachineryandprocesses，whicharenotworthwhattheycost，andpracticalinstinctofthiskindoftenenablesthemtosucceedincompetitionwithContinentalrivalswhoaremuchbettereducated。
7。AgoodplanisthatofspendingthesixwintermonthsofseveralyearsafterleavingschoolinlearningscienceinCollege，andthesixsummermonthsasarticledpupilsinlargeworkshops。ThepresentwriterintroducedthisplanaboutfortyyearsagoatUniversityCollege，BristolnowtheUniversityofBristol。Butithaspracticaldifficultieswhichcanbeovercomeonlybythecordialandgenerousco-operationoftheheadsoflargefirmswiththeCollegeauthorities。AnotherexcellentplanisthatadoptedintheschoolattachedtotheworksofMessrsMatherandPlattatManchester。Thedrawingsmadeintheschoolareofworkactuallyinprogressintheshops。Onedaytheteachergivesthenecessaryexplanationsandcalculations，andthenextdaythescholarssee，asitwereontheanvil，theverythingwhichhasbeenthesubjectofhislecture。
8。Theemployerbindshimselftoseethattheapprenticeisthoroughlytaughtintheworkshopallthesubdivisionsofonegreatdivisionofhistrade，insteadoflettinghimlearnonlyoneofthesesubdivisions，astoooftenhappensnow。Theapprentice’strainingwouldthenoftenbeasbroadasifhehadbeentaughtthewholeofthetradeasitexistedafewgenerationsago。anditmightbesupplementedbyatheoreticalknowledgeofallbranchesofthetrade，acquiredinatechnicalschool。SomethingresemblingtheoldapprenticeshipsystemhasrecentlycomeintovogueforyoungEnglishmenwhodesiretolearnthebusinessoffarmingunderthepeculiarconditionsofanewcountry……andtherearesomesignsthattheplanmaybeextendedtothebusinessoffarminginthiscountry，forwhichitisinmanyrespectsadmirablyadapted。Butthereremainsagreatdealofeducationsuitabletothefarmerandtothefarm-labourerwhichcanbestbegiveninagriculturalcollegesanddairyschools。
Meanwhilemanygreatagenciesforthetechnicaleducationofadultsarebeingrapidlydeveloped，suchaspublicexhibitions，tradeassociationsandcongresses，andtradejournals。Eachofthemhasitsownworktodo。Inagricultureandsomeothertradesthegreatestaidtoprogressisperhapsfoundinpublicshows。
Butthoseindustries，whicharemoreadvancedandinthehandsofpersonsofstudioushabits，owemoretothediffusionofpracticalandscientificknowledgebytradejournals。which，aidedbychangesinthemethodsofindustryandalsoinitssocialconditions，arebreakinguptradesecretsandhelpingmenofsmallmeansincompetitionwiththeirricherrivals。
9。TheheadsofalmosteveryprogressivefirmontheContinenthavecarefullystudiedprocessesandmachineryinforeignlands。
TheEnglisharegreattravellers。butpartlyperhapsonaccountoftheirignoranceofotherlanguagestheyseemhardlytosetenoughstoreonthetechnicaleducationthatcanbegainedbythewiseuseoftravel。
10。Infacteverydesignerinaprimitiveageisgovernedbyprecedent：onlyverydaringpeopledepartfromit。eventheydonotdepartfar，andtheirinnovationsaresubjectedtothetestofexperience，which，inthelongrun，isinfallible。Forthoughthecrudestandmostridiculousfashionsinartandinliteraturewillbeacceptedbythepeopleforatimeatthebiddingoftheirsocialsuperiors，nothingbuttrueartisticexcellencehasenabledaballadoramelody，astyleofdressorapatternoffurnituretoretainitspopularityamongawholenationformanygenerationstogether。Theseinnovations，then，whichwereinconsistentwiththetruespiritofartweresuppressed，andthosethatwereontherighttrackwereretained，andbecamethestarting-pointforfurtherprogress。andthustraditionalinstinctsplayedagreatpartinpreservingthepurityoftheindustrialartsinOrientalcountries，andtoalessextentinmedievalEurope。
11。FrenchdesignersfinditbesttoliveinParis：iftheystayforlongoutofcontactwiththecentralmovementsoffashiontheyseemtofallbehindhand。Mostofthemhavebeeneducatedasartists，buthavefailedoftheirhighestambition。Itisonlyinexceptionalcases，asforinstancefortheS鑦reschina，thatthosewhohavesucceededasartistsfinditworththeirwhiletodesign。Englishmencan，however，holdtheirownindesigningforOrientalmarkets，andthereisevidencethattheEnglishareatleastequaltotheFrenchinoriginality。thoughtheyareinferiorinquicknessinseeinghowtogroupformsandcolourssoastoobtainaneffectiveresult。SeetheReportonTechnicalEducation，Vol。1，pp。256，261，324，325andVol。III，pp。
151-2，202-3，211andpassim。Itisprobablethattheprofessionofthemoderndesignerhasnotyetrisentothebestpositionwhichitiscapableofholding。Forithasbeentoadisproportionateextentundertheinfluenceofonenation。andthatnationisonewhoseworksinthehighestbranchesofarthaveseldombornetobetransplanted。Theyhaveindeedoftenbeenapplaudedandimitatedatthetimebyothernations，buttheyhaveasyetseldomstruckakey-noteforthebestworkoflatergenerations。
12。Thepaintersthemselveshaveputonrecordintheportrait-galleriesthefactthatinmedievaltimes，andevenlater，theirartattractedalargershareofthebestintellectthanitdoesnow。whentheambitionofyouthistemptedbytheexcitementofmodernbusiness，whenitszealforimperishableachievementsfindsafieldinthediscoveriesofmodernscience，and，lastly，whenagreatdealofexcellenttalentisinsensiblydivertedfromhighaimsbythereadypaytobegotbyhastilywritinghalf-thoughtsforperiodicalliterature。
13。Millwassomuchimpressedbythedifficultiesthatbesetaparentintheattempttobringuphissontoanoccupationwidelydifferentincharacterfromhisown，thathesaidPrinciples，II，XIV，2：——Socomplete，indeed，hashithertobeentheseparation，sostronglymarkedthelineofdemarcation，betweenthedifferentgradesoflabourers，astobealmostequivalenttoanhereditarydistinctionofcaste。eachemploymentbeingchieflyrecruitedfromthechildrenofthosealreadyemployedinit，orinemploymentsofthesamerankwithitinsocialestimation，orfromthechildrenofpersonswho，iforiginallyofalowerrank，havesucceededinraisingthemselvesbytheirexertions。Theliberalprofessionsaremostlysuppliedbythesonsofeithertheprofessionalortheidleclasses：themorehighlyskilledmanualemploymentsarefilledupfromthesonsofskilledartisansortheclassoftradesmenwhorankwiththem：thelowerclassesofskilledemploymentsareinasimilarcase。andunskilledlabourers，withoccasionalexceptions，remainfromfathertosonintheirpristinecondition。Consequentlythewagesofeachclasshavehithertobeenregulatedbytheincreaseofitsownpopulation，ratherthanthatofthegeneralpopulationofthecountry。Buthegoeson，Thechanges，however，nowsorapidlytakingplaceinusagesandideasareunderminingallthesedistinctions。
Hispresciencehasbeenvindicatedbytheprogressofchangesincehewrote。Thebroadlinesofdivisionwhichhepointedouthavebeenalmostobliteratedbytherapidactionofthosecauseswhich，aswesawearlierinthechapter，arereducingtheamountofskillandabilityrequiredinsomeoccupationsandincreasingitinothers。Wecannotanylongerregarddifferentoccupationsasdistributedamongfourgreatplanes。butwemayperhapsthinkofthemasresemblingalongflightofstepsofunequalbreadth，someofthembeingsobroadastoactaslandingstages。Orevenbetterstillwemightpicturetoourselvestwoflightsofstairs，onerepresentingthehard-handedindustriesandtheotherthesofthandedindustries。becausetheverticaldivisionbetweenthesetwoisinfactasbroadandasclearlymarkedasthehorizontaldivisionbetweenanytwogrades。
Mill’sclassificationhadlostgreatpartofitsvaluewhenCairnesadopteditLeadingPrinciples，p。72。AclassificationmoresuitedtoourexistingconditionsisofferedbyGiddingsPoliticalScienceQuarterly，Vol。II，pp。69-71。Itisopentotheobjectionthatitdrawsbroadlinesofdivisionwherenaturehasmadenobroadlines。butitisperhapsasgoodasanydivisionofindustryintofourgradescanbe。Hisdivisionsareiautomaticmanuallabour，includingcommonlabourersandmachinetenders。iiresponsiblemanuallabour，includingthosewhocanbeentrustedwithsomeresponsibilityandlabourofself-direction。iiiautomaticbrainworkers，suchasbookkeepers，andivresponsiblebrainworkers，includingthesuperintendentsanddirectors。
Theconditionsandmethodsofthelargeandincessantmovementofthepopulationupwardsanddownwardsfromgradetogradearestudiedmorefullybelow，VI，IV，VandVII。
Thegrowingdemandforboystorunerrands，andtodootherworkthathasnoeducationalvalue，hasincreasedthedangerthatparentsmaysendtheirsonsintoavenuesthathavenooutlookforgoodemploymentinlateryears：andsomethingisbeingdonebypublicagency，andmorebythedevotionandenergyofmenandwomeninunofficialassociation，ingivingoutnotesofwarningagainstsuchblindalleyoccupations，andassistingladstopreparethemselvesforskilledwork。Theseeffortsmaybeofgreatnationalvalue。Butcaremustbetakenthatthisguidanceandhelpisasaccessibletothehigherstrainsoftheworkingclasspopulationwheninneedofitastothelower。lesttheraceshoulddegenerate。
Chapter7
TheGrowthofWealth1。Inthischapteritisnotnecessarytodistinguishthepointsofviewinwhichwealthisregardedastheobjectofconsumptionandasanagentofproduction。weareconcernedwiththegrowthofwealthsimply，andwehavenoneedtoemphasizeitsusesascapital。
Theearliestformsofwealthwereprobablyimplementsforhuntingandfishing，andpersonalornaments。and，incoldcountries，clothingandhuts。1*Duringthisstagethedomesticationofanimalsbegan。butatfirsttheywereprobablycaredforchieflyfortheirownsake，becausetheywerebeautiful，anditwaspleasanttohavethem。theywere，likearticlesofpersonalornament，desiredbecauseoftheimmediategratificationtobederivedfromtheirpossessionratherthanasaprovisionagainstfutureneeds。2*Graduallytheherdsofdomesticatedanimalsincreased。andduringthepastoralstagetheywereatoncethepleasureandtheprideoftheirpossessors，theoutwardemblemsofsocialrank，andbyfarthemostimportantstoreofwealthaccumulatedasaprovisionagainstfutureneeds。
Asnumbersthickenedandthepeoplesettleddowntoagriculture，cultivatedlandtookthefirstplaceintheinventoryofwealth。andthatpartofthevalueofthelandwhichwasduetoimprovementsamongwhichwellsheldaconspicuousplacebecamethechiefelementofcapital，inthenarrowersenseoftheterm。Nextinimportancecamehouses，domesticatedanimals，andinsomeplacesboatsandships。buttheimplementsofproduction，whetherforuseinagricultureorindomesticmanufactures，remainedforalongtimeoflittlevalue。Insomeplaces，however，preciousstonesandthepreciousmetalsinvariousformsbecameearlyaleadingobjectofdesireandarecognizedmeansofhoardingwealth。while，tosaynothingofthepalacesofmonarchs，alargepartofsocialwealthinmanycomparativelyrudecivilizationstooktheformofedificesforpublicpurposes，chieflyreligious，andofroadsandbridges，ofcanalsandirrigationworks。
Forsomethousandsofyearstheseremainedthechiefformsofaccumulatedwealth。Intownsindeedhousesandhouseholdfurnituretookthefirstplace，andstocksofthemoreexpensiveofrawmaterialscountedforagooddeal。butthoughtheinhabitantsofthetownshadoftenmorewealthperheadthanthoseofthecountry，theirtotalnumbersweresmall。andtheiraggregatewealthwasverymuchlessthanthatofthecountry。
Duringallthistimetheonlytradethatusedveryexpensiveimplementswasthetradeofcarryinggoodsbywater：theweaver’slooms，thehusbandman’sploughsandtheblacksmith’sanvilswereofsimpleconstructionandwereoflittleaccountbesidethemerchant’sships。ButintheeighteenthcenturyEnglandinauguratedtheeraofexpensiveimplements。
TheimplementsoftheEnglishfarmerhadbeenrisingslowlyinvalueforalongtime。buttheprogresswasquickenedintheeighteenthcentury。AfterawhiletheusefirstofwaterpowerandthenofsteampowercausedtherapidSubstitutionofexpensivemachineryforinexpensivehandtoolsinonedepartmentofproductionafteranother。Asinearliertimesthemostexpensiveimplementswereshipsandinsomecasescanalsfornavigationandirrigation，sonowtheyarethemeansoflocomotioningeneral——railways。andtramways，canals，docksandships，telegraphandtelephonesystemsandwater-works：evengas-worksmightalmostcomeunderthishead，onthegroundthatagreatpartoftheirplantisdevotedtodistributingthegas。
Afterthesecomeminesandironandchemicalworks，ship-buildingyards，printing-presses，andotherlargefactoriesfullofexpensivemachinery。
Onwhicheversidewelookwefindthattheprogressanddiffusionofknowledgeareconstantlyleadingtotheadoptionofnewprocessesandnewmachinerywhicheconomizehumaneffortonconditionthatsomeoftheeffortisspentagoodwhilebeforetheattainmentoftheultimateendstowhichitisdirected。Itisnoteasytomeasurethisprogressexactly，becausemanymodernindustrieshadnocounterpartinancienttimes。Butletuscomparethepastandpresentconditionsofthefourgreatindustriestheproductsofwhichhavenotchangedtheirgeneralcharacter：viz。agriculture，thebuilding，thecloth-making，andthecarryingtrades。Inthefirsttwoofthesehandworkstillretainsanimportantplace：buteveninthemthereisagreatdevelopmentofexpensivemachinery。CompareforinstancetherudeimplementsofanIndianRyotevenofto-daywiththeequipmentofaprogressiveLowlandfarmer。3*andconsiderthebrick-making，mortar-making，sawing，planing，mouldingandslottingmachinesofamodernbuilder，hissteamcranesandhiselectriclight。Andifweturntothetextiletrades，oratleasttothoseofthemwhichmakethesimplerproducts，wefindeachoperativeinearlytimescontentwithimplementsthecostofwhichwasequivalenttobutafewmonthsofhislabour。whileinmoderntimesitisestimatedthatforeachman，womanandchildemployedthereisacapitalinplantaloneofmorethan？00，orsaytheequivalentoffiveyears’labour。Againthecostofasteam-shipisperhapsequivalenttothelabourforfifteenyearsormoreofthosewhoworkher。whileacapitalofabout？，000，000，000investedinrailwaysinEnglandandWalesisequivalenttotheworkformorethantwentyyearsofthe300，000wage-earnersemployedonthem。
2。Ascivilizationhasprogressed，manhasalwaysbeendevelopingnewwants，andnewandmoreexpensivewaysofgratifyingthem。Therateofprogresshassometimesbeenslow，andoccasionallytherehasevenbeenagreatretrogrademovement。
butnowwearemovingonatarapidpacethatgrowsquickereveryyear。andwecannotguesswhereitwillstop。Oneverysidefurtheropeningsaresuretoofferthemselves，allofwhichwilltendtochangethecharacterofoursocialandindustriallife，andtoenableustoturntoaccountvaststoresofcapitalinprovidingnewgratificationsandnewwaysofeconomizingeffortbyexpendingitinanticipationofdistantwants。Thereseemstobenogoodreasonforbelievingthatweareanywherenearastationarystateinwhichtherewillbenonewimportantwantstobesatisfied。inwhichtherewillbenomoreroomforprofitablyinvestingpresenteffortinprovidingforthefuture，andinwhichtheaccumulationofwealthwillceasetohaveanyreward。
Thewholehistoryofmanshowsthathiswantsexpandwiththegrowthofhiswealthandknowledge。4*
Andwiththegrowthofopeningsfortheinvestmentofcapitalthereisaconstantincreaseinthatsurplusofproductionoverthenecessariesoflife，whichgivesthepowertosave。Whentheartsofproductionwererude，therewasverylittlesurplus，exceptwhereastrongrulingracekeptthesubjectmasseshardatworkonthebarenecessariesoflife，andwheretheclimatewassomildthatthosenecessariesweresmallandeasilyobtained。
Buteveryincreaseintheartsofproduction，andinthecapitalaccumulatedtoassistandsupportlabourinfutureproduction，increasedthesurplusoutofwhichmorewealthcouldbeaccumulated。Afteratimecivilizationbecamepossibleintemperateandevenincoldclimates。theincreaseofmaterialwealthwaspossibleunderconditionswhichdidnotenervatetheworker，anddidnotthereforedestroythefoundationsonwhichitrested。5*Thusfromsteptostepwealthandknowledgehavegrown，andwitheverystepthepowerofsavingwealthandextendingknowledgehasincreased。
3。Thehabitofdistinctlyrealizingthefutureandprovidingforithasdevelopeditselfslowlyandfitfullyinthecourseofman’shistory。Travellerstellusoftribeswhomightdoubletheirresourcesandenjoymentswithoutincreasingtheirtotallabour，iftheywouldonlyapplyalittleinadvancethemeansthatliewithintheirpowerandtheirknowledge。as，forinstance，byfencingintheirlittleplotsofvegetablesagainsttheintrusionofwildanimals。
Buteventhisapathyisperhapslessstrangethanthewastefulnessthatisfoundnowamongsomeclassesinourowncountry。Casesarenotrareofmenwhoalternatebetweenearningtwoorthreepoundsaweekandbeingreducedtothevergeofstarvation：theutilityofashillingtothemwhentheyareinemploymentislessthanthatofapennywhentheyareoutofit，andyettheyneverattempttomakeprovisionforthetimeofneed。6*Attheoppositeextremetherearemisers，insomeofwhomthepassionforsavingbordersoninsanity。while，evenamongpeasantproprietorsandsomeotherclasses，wemeetnotunfrequentlywithpeoplewhocarrythriftsofarastostintthemselvesofnecessaries，andtoimpairtheirpoweroffuturework。Thustheyloseeveryway：theyneverreallyenjoylife。
whiletheincome。whichtheirstored-upwealthbringsthemislessthantheywouldhavegotfromtheincreaseoftheirearningpower，iftheybadinvestedinthemselvesthewealththattheyhaveaccumulatedinamaterialform。
InIndia，andtoalessextentinIreland，wefindpeoplewhodoindeedabstainfromimmediateenjoymentandsaveupconsiderablesumswithgreatself-sacrifice，butspendalltheirsavingsinlavishfestivitiesatfuneralsandmarriages。Theymakeintermittentprovisionforthenearfuture，butscarcelyanypermanentprovisionforthedistantfuture：thegreatengineeringworksbywhichtheirproductiveresourceshavebeensomuchincreased，havebeenmadechieflywiththecapitalofthemuchlessself-denyingraceofEnglishmen。
Thusthecauseswhichcontroltheaccumulationofwealthdifferwidelyindifferentcountriesanddifferentages。Theyarenotquitethesameamonganytworaces，andperhapsnotevenamonganytwosocialclassesinthesamerace。Theydependmuchonsocialandreligioussanctions。anditisremarkablehow，whenthebindingforceofcustomhasbeeninanydegreeloosened，differencesofpersonalcharacterwillcauseneighboursbroughtupunderlikeconditionstodifferfromoneanothermorewidelyandmorefrequentlyintheirhabitsofextravaganceorthriftthaninalmostanyotherrespect。
4。Thethriftlessnessofearlytimeswasinagreatmeasureduetothewantofsecuritythatthosewhomadeprovisionforthefuturewouldenjoyit：onlythosewhowerealreadywealthywerestrongenoughtoholdwhattheyhadsaved。thelaboriousandself-denyingpeasantwhohadheapedupalittlestoreofwealthonlytoseeittakenfromhimbyastrongerhand，wasaconstantwarningtohisneighbourstoenjoytheirpleasureandtheirrestwhentheycould。ThebordercountrybetweenEnglandandScotlandmadelittleprogresssolongasitwasliabletoincessantforays。therewasverylittlesavingbytheFrenchpeasantsintheeighteenthcenturywhentheycouldescapetheplunderofthetax-gathereronlybyappearingtobepoor，orbyIrishcottiers，who，onmanyestates，evenfortyyearsago，werecompelledtofollowthesamecourseinordertoavoidthelandlords’claimsofexorbitantrents。
Insecurityofthiskindhasnearlypassedawayfromthecivilizedworld。ButwearestillsufferinginEnglandfromtheeffectsofthePoor-lawwhichruledatthebeginningoflastcentury，andwhichintroducedanewformofinsecurityfortheworkingclasses。Foritarrangedthatpartoftheirwagesshould，ineffect，begivenintheformofpoorrelief。andthatthisshouldbedistributedamongthemininverseproportiontotheirindustryandthriftandforethought，sothatmanythoughtitfoolishtomakeprovisionforthefuture。Thetraditionsandinstinctswhichwerefosteredbythatevilexperienceareevennowagreathindrancetotheprogressoftheworkingclasses。andtheprinciplewhichnominallyatleastunderliesthepresentPoor-law，thattheStateshouldtakeaccountonlyofdestitutionandnotatallofmerit，actsinthesamedirection，thoughwithlessforce。
Insecurityofthiskindalsoisbeingdiminished：thegrowthofenlightenedviewsastothedutiesoftheStateandofprivatepersonstowardsthepoor，istendingtomakeiteverydaymoretruethatthosewhohavehelpedthemselvesandendeavouredtoprovidefortheirownfuturewillbecaredforbysocietybetterthantheidleandthethoughtless。Buttheprogressinthisdirectionisstillslow，andthereremainsmuchtobedoneyet。
5。Thegrowthofamoney-economyandofmodernhabitsofbusinessdoesindeedhindertheaccumulationofwealthbyputtingnewtemptationsinthewayofthosewhoareinclinedtoliveextravagantly。Inoldtimesifamanwantedagoodhousetoliveinhemustbuildithimself。nowhefindsplentyofgoodhousestobehiredatarent。Formerly，ifhewantedgoodbeerhemusthaveagoodbrewhouse，nowhecanbuyitmorecheaplyandbetterthanhecouldbrewit。Nowhecanborrowbooksfromalibraryinsteadofbuyingthem。andhecanevenfurnishhishousebeforeheisreadytopayforhisfurniture。Thusinmanywaysthemodernsystemsofbuyingandselling，andlendingandborrowing，togetherwiththegrowthofnewwants，leadtonewextravagances，andtoasubordinationoftheinterestsofthefuturetothoseofthepresent。
Butontheotherhand，amoney-economyincreasesthevarietyoftheusesbetweenwhichapersoncandistributehisfutureexpenditure。Apersonwhoinaprimitivestateofsocietystoresupsomethingsagainstafutureneed，mayfindthatafterallhedoesnotneedthosethingsasmuchasotherswhichhehasnotstoredup：andtherearemanyfuturewantsagainstwhichitisimpossibletoprovidedirectlybystoringupgoods。Buthewhohasstoredupcapitalfromwhichhederivesamoneyincomecanbuywhathewilltomeethisneedsastheyarise。7*
Again，modernmethodsofbusinesshavebroughtwiththemopportunitiesforthesafeinvestmentofcapitalinsuchwaysastoyieldarevenuetopersonswhohavenogoodopportunityofengaginginanybusiness，——noteveninthatofagriculture，wherethelandwillundersomeconditionsactasatrustworthysavings-bank。Thesenewopportunitieshaveinducedsomepeoplewhowouldnototherwisehaveattemptedittoputbysomethingfortheirownoldage。And，whathashadafargreatereffectonthegrowthofwealth，ithasrendereditfareasierforamantoprovideasecureincomeforhiswifeandchildrenafterhisdeath：for，afterall，familyaffectionisthemainmotiveofsaving。
6。Thereareindeedsomewhofindanintensepleasureinseeingtheirhoardsofwealthgrowupundertheirhands，withscarcelyanythoughtforthehappinessthatmaybegotfromitsusebythemselvesorbyothers。Theyarepromptedpartlybytheinstinctsofthechase，bythedesiretooutstriptheirrivals。
bytheambitiontohaveshownabilityingettingthewealth，andtoacquirepowerandsocialpositionbyitspossession。Andsometimestheforceofhabit，startedwhentheywerereallyinneedofmoney，hasgiventhem，byasortofreflexaction，anartificialandunreasoningpleasureinamassingwealthforitsownsake。Butwereitnotforthefamilyaffections，manywhonowworkhardandsavecarefullywouldnotexertthemselvestodomorethansecureacomfortableannuityfortheirownlives。
eitherbypurchasefromaninsurancecompany，orbyarrangingtospendeveryyear，aftertheyhadretiredfromwork，partoftheircapitalaswellasalltheirincome。Intheonecasetheywouldleavenothingbehindthem：intheotheronlyprovisionforthatpartoftheirhoped-foroldage，fromwhichtheyhadbeencutoffbydeath。Thatmenlabourandsavechieflyforthesakeoftheirfamiliesandnotforthemselves，isshownbythefactthattheyseldomspend，aftertheyhaveretiredfromwork，morethantheincomethatcomesinfromtheirsavings，preferringtoleavetheirstored-upwealthintactfortheirfamilies。whileinthiscountryalonetwentymillionsayeararesavedintheformofinsurancepoliciesandareavailableonlyafterthedeathofthosewhosavethem。
Amancanhavenostrongerstimulustoenergyandenterprisethanthehopeofrisinginlife，andleavinghisfamilytostartfromahigherroundofthesocialladderthanthatonwhichhebegan。Itmayevengivehimanover-masteringpassionwhichreducestoinsignificancethedesireforease，andforallordinarypleasures，andsometimesevendestroysinhimthefinersensibilitiesandnobleraspirations。But，asisshownbythemarvellousgrowthofwealthinAmericaduringthepresentgeneration，itmakeshimamightyproducerandaccumulatorofriches。unlessindeedheisintoogreatahurrytograspthesocialpositionwhichhiswealthwillgivehim：forhisambitionmaythenleadhimintoasgreatextravaganceascouldhavebeeninducedbyanimprovidentandself-indulgenttemperament。
Thegreatestsavingsaremadebythosewhohavebeenbroughtuponnarrowmeanstosternhardwork，whohaveretainedtheirsimplehabits，inspiteofsuccessinbusiness，andwhonourishacontemptforshowyexpenditureandadesiretobefoundattheirdeathricherthantheyhadbeenthoughttobe。Thistypeofcharacterisfrequentinthequieterpartsofoldbutvigorouscountries，anditwasverycommonamongthemiddleclassesintheruraldistrictsofEnglandformorethanagenerationafterthepressureofthegreatFrenchwarandtheheavytaxesthatlingeredinitswake。
7。Next，astothesourcesofaccumulation。Thepowertosavedependsonanexcessofincomeovernecessaryexpenditure。andthisisgreatestamongthewealthy，Inthiscountrymostofthelargerincomes，butonlyafewofthesmaller，arechieflyderivedfromcapital。And，earlyinthepresentcentury，thecommercialclassesinEnglandhadmuchmoresavinghabitsthaneitherthecountrygentlemenortheworkingclasses。ThesecausescombinedtomakeEnglisheconomistsofthelastgenerationregardsavingsasmadealmostexclusivelyfromtheprofitsofcapital。
ButeveninmodernEnglandrentandtheearningsofprofessionalmenandhiredworkersareanimportantsourceofaccumulation：andtheyhavebeenthechiefsourceofitinalltheearlierstagesofcivilization。8*Moreover，themiddleandespeciallytheprofessionalclasseshavealwaysdeniedthemselvesmuchinordertoinvestcapitalintheeducationoftheirchildren。whileagreatpartofthewagesoftheworkingclassesisinvestedinthephysicalhealthandstrengthoftheirchildren。Theoldereconomiststooktoolittleaccountofthefactthatthehumanfacultiesareasimportantameansofproductionasanyotherkindofcapital。andwemayconclude，inoppositiontothem，thatanychangeinthedistributionofwealthwhichgivesmoretothewagereceiversandlesstothecapitalistsislikely，otherthingsbeingequal，tohastentheincreaseofmaterialproduction，andthatitwillnotperceptiblyretardthestoring-upofmaterialwealth。Ofcourseotherthingswouldnotbeequalifthechangewerebroughtaboutbyviolentmethodswhichgaveashocktopublicsecurity。Butaslightandtemporarychecktotheaccumulationofmaterialwealthneednotnecessarilybeanevil，evenfromapurelyeconomicpointofview，if，beingmadequietlyandwithoutdisturbance，itprovidedbetteropportunitiesforthegreatmassofthepeople，increasedtheirefficiency，anddevelopedinthemsuchhabitsofself-respectastoresultinthegrowthofamuchmoreefficientraceofproducersinthenextgeneration。Forthenitmightdomoreinthelong-runtopromotethegrowthofevenmaterialwealththangreatadditionstoourstockoffactoriesandsteam-engines。
Apeopleamongwhomwealthiswelldistributed，andwhohavehighambitions，arelikelytoaccumulateagreatdealofpublicproperty。andthesavingsmadeinthisformalonebysomewell-to-dodemocraciesformnoinconsiderablepartofthebestpossessionswhichourownagehasinheritedfromitspredecessors。Thegrowthoftheco-operativemovementinallitsmanyforms，ofbuildingsocieties，friendlysocieties，trades-unions，ofworkingmen’ssavings-banksetc。，showsthat，evensofarastheimmediateaccumulationofmaterialwealthgoes，theresourcesofthecountryarenot，astheoldereconomistsassumed，entirelylostwhentheyarespentinpayingwages。9*
8。Havinglookedatthedevelopmentofthemethodsofsavingandtheaccumulationofwealth，wemaynowreturntothatanalysisoftherelationsbetweenpresentanddeferredgratifications，whichwebeganfromanotherpointofviewinourstudyofDemand。10*
Wetheresawthatanyone，whohasastockofacommoditywhichisapplicabletoseveraluses，endeavourstodistributeitbetweenthemallinsuchawayastogivehimthegreatestsatisfaction。Ifhethinkshecouldobtainmoresatisfactionbytransferringsomeofitfromoneusetoanotherhewilldoso。
If，therefore，hemakeshisdistributionrightly，hestopsinapplyingittoeachseveraluseatsuchapointthathegetsanequalamountofgoodoutoftheapplicationthatheisonlyjustinducedtomakeofittoeachseparateuse。inotherwords，hedistributesitbetweenthedifferentusesinsuchawaythatithasthesamemarginalutilityineach。
Wesaw，further，thattheprincipleremainsthesamewhetheralltheusesarepresent，orsomearepresentandothersdeferred：butthatinthislattercasesomenewconsiderationsenter，ofwhichthechiefare，firstly，thatthedeferringofagratificationnecessarilyintroducessomeuncertaintyastoitseverbeingenjoyed。andsecondly，that，ashumannatureisconstituted，apresentgratificationisgenerally，thoughnotalways，preferredtoagratificationthatisexpectedtobeequaltoit，andisascertainasanythingcanbeinhumanlife。
Aprudentpersonwhothoughtthathewouldderiveequalgratificationsfromequalmeansatallstagesofhislife，wouldperhapsendeavourtodistributehismeansequallyoverhiswholelife：andifhethoughtthattherewasadangerthathispowerofearningincomeatafuturedatewouldrunshort，hewouldcertainlysavesomeofhismeansforafuturedate。Hewoulddothisnotonlyifhethoughtthathissavingswouldincreaseinhishands，butevenifhethoughttheywoulddiminish。Hewouldputbyafewfruitandeggsforthewinter，becausetheywouldthenbescarce，thoughtheywouldnotimprovebykeeping。Ifhedidnotseehiswaytoinvestinghisearningsintradeoronloan，soastoderiveinterestorprofitsfromthem，hewouldfollowtheexampleofsomeofourownforefatherswhoaccumulatedsmallstoresofguineaswhichtheycarriedintothecountry，whentheyretiredfromactivelife。Theyreckonedthattheextragratificationwhichtheycouldgetbyspendingafewmoreguineaswhilemoneywascominginfast，wouldbeoflessservicetothemthanthecomfortwhichthoseguineaswouldbuyforthemintheiroldage。Thecareoftheguineascostthemagreatdealoftrouble。andnodoubttheywouldhavebeenwillingtopaysomesmallchargetoanyonewhowouldhaverelievedthemfromthetroublewithoutoccasioningthemanysortofrisk。
Wecanthereforeimagineastateofthingsinwhichstored-upwealthcouldbeputtobutlittlegooduse。inwhichmanypersonswantedtomakeprovisionfortheirownfuture。whilebutfewofthosewhowantedtoborrowgoods，wereabletooffergoodsecurityforreturningthem，orequivalentgoods，atafuturedate。Insuchastateofthingsthepostponementof，andwaitingforenjoymentswouldbeanactionthatincurredapenaltyratherthanreapedareward：byhandingoverhismeanstoanothertobetakencareof，apersoncouldonlyexpecttogetasurepromiseofsomethingless，andnotofsomethingmorethanthatwhichhelent：therateofinterestwouldbenegative。11*
Suchastateofthingsisconceivable。Butitisalsoconceivable，andalmostequallyprobable，thatpeoplemaybesoanxioustoworkthattheywillundergosomepenaltyasaconditionofobtainingleavetowork。For，asdeferringtheconsumptionofsomeofhismeansisathingwhichaprudentpersonwoulddesireonitsownaccount，sodoingsomeworkisadesirableobjectonitsownaccounttoahealthyperson。
Politicalprisoners，forinstance，generallyregarditasafavourtobeallowedtodoalittlework。Andhumannaturebeingwhatitis，wearejustifiedinspeakingoftheinterestoncapitalastherewardofthesacrificeinvolvedinthewaitingfortheenjoymentofmaterialresources，becausefewpeoplewouldsavemuchwithoutreward。justaswespeakofwagesastherewardoflabour，becausefewpeoplewouldworkhardwithoutreward。
Thesacrificeofpresentpleasureforthesakeoffuture，hasbeencalledabstinencebyeconomists。Butthistermhasbeenmisunderstood：forthegreatestaccumulatorsofwealthareveryrichpersons，someofwhomliveinluxury，andcertainlydonotpractiseabstinenceinthatsenseoftheterminwhichitisconvertiblewithabstemiousness。Whateconomistsmeantwasthat，whenapersonabstainedfromconsuminganythingwhichhehadthepowerofconsuming，withthepurposeofincreasinghisresourcesinthefuture，hisabstinencefromthatparticularactofconsumptionincreasedtheaccumulationofwealth。Since，however，thetermisliabletobemisunderstood，wemaywithadvantageavoiditsuse，andsaythattheaccumulationofwealthisgenerallytheresultofapostponementofenjoyment，orofawaitingforit。12*Or，inotherwordsagain，itisdependentonman’sprospectiveness。thatis，hisfacultyofrealizingthefuture。
Thedemandpriceofaccumulation，thatis，thefuturepleasurewhichhissurroundingsenableapersontoobtainbyworkingandwaitingforthefuture，takesmanyforms：butthesubstanceisalwaysthesame。Theextrapleasurewhichapeasantwhohasbuiltaweatherproofhutderivesfromitsusance，whilethesnowisdriftingintothoseofhisneighbourswhohavespentlesslabouronbuildingtheirs，isthepriceearnedbyhisworkingandwaiting。Itrepresentstheextraproductivenessofeffortswiselyspentinprovidingagainstdistantevils，orforthesatisfactionoffuturewants，ascomparedwiththatwhichwouldhavebeenderivedfromanimpulsivegraspingatimmediatesatisfactions。Thusitissimilarinallfundamentalrespectstotheinterestwhichtheretiredphysicianderivesfromthecapitalhehaslenttoafactoryoraminetoenableittoimproveitsmachinery。andonaccountofthenumericaldefinitenessoftheforminwhichitisexpressed，wemaytakethatinteresttobethetypeofandtorepresenttheusanceofwealthinotherforms。
Itmattersnotforourimmediatepurposewhetherthepowerovertheenjoymentforwhichthepersonwaits，wasearnedbyhimdirectlybylabour，whichistheoriginalsourceofnearlyallenjoyment。orwasacquiredbyhimfromothers，byexchangeorbyinheritance，bylegitimatetradeorbyunscrupulousformsofspeculation，byspoliationorbyfraud：theonlypointswithwhichwearejustnowconcernedarethatthegrowthofwealthinvolvesingeneraladeliberatewaitingforapleasurewhichapersonhasrightlyorwronglythepowerofcommandingintheimmediatepresent，andthathiswillingnesssotowaitdependsonhishabitofvividlyrealizingthefutureandprovidingforit。
9。Butletuslookmorecloselyatthestatementthat，ashumannatureisconstituted，anincreaseinthefuturepleasurewhichcanbesecuredbyapresentgivensacrificewillingeneralincreasetheamountofpresentsacrificethatpeoplewillmake。
Suppose，forinstance，thatvillagershavetogettimberforbuildingtheircottagesfromtheforests。themoredistanttheseare，thesmallerwillbethereturnoffuturecomfortgotbyeachday’sworkinfetchingthewood，thelesswillbetheirfuturegainfromthewealthaccumulatedprobablybyeachday’swork：andthissmallnessofthereturnoffuturepleasure，tobegotatagivenpresentsacrifice，willtendtopreventthemfromincreasingthesizeoftheircottages。andwillperhapsdiminishonthewholetheamountoflabourtheyspendingettingtimber。
Butthisruleisnotwithoutexception。For，ifcustomhasmadethemfamiliarwithcottagesofonlyonefashion，thefurthertheyarefromthewoods，andthesmallertheusancetobegotfromtheproduceofoneday’swork，themoredays’workwilltheygive。
Andsimilarlyifapersonexpects，nottousehiswealthhimself，buttoletitoutoninterest，thehighertherateofinterestthehigherhisrewardforsaving。Iftherateofinterestonsoundinvestmentsis4percent。，andhegivesup？00worthofenjoymentnow，hemayexpectanannuityof？worthofenjoyment：buthecanexpectonly？worth，iftherateis3
percent。Andafallintherateofinterestwillgenerallylowerthemarginatwhichapersonfindsitjustnotworthwhiletogiveuppresentpleasuresforthesakeofthosefuturepleasuresthataretobesecuredbysavingsomeofhismeans。Itwillthereforegenerallycausepeopletoconsumealittlemorenow，andtomakelessprovisionforfutureenjoyment。Butthisruleisnotwithoutexception。
SirJosiahChildremarkedmorethantwocenturiesago，thatincountriesinwhichtherateofinterestishigh，merchantswhentheyhavegottengreatwealth，leavetradingandlendouttheirmoneyatinterest，thegainthereofbeingsoeasy，certainandgreat。whereasinothercountrieswhereinterestisatalowerrate，theycontinuemerchantsfromgenerationtogeneration，andenrichthemselvesandthestate。Anditisastruenow，asitwasthen，thatmanymenretirefrombusinesswhentheyareyetalmostintheprimeoflife，andwhentheirknowledgeofmenandthingsmightenablethemtoconducttheirbusinessmoreefficientlythanever。Again，asSarganthaspointedout，ifamanhasdecidedtogoonworkingandsavingtillhehasprovidedacertainincomeforhisoldage，orforhisfamilyafterhisdeath，hewillfindthathehastosavemoreiftherateofinterestislowthanifitishigh。Suppose，forinstance，thathewishestoprovideanincomeof？00ayearonwhichhemayretirefrombusiness，ortoinsure？00ayearforhiswifeandchildrenafterhisdeath：ifthenthenthecurrentrateofinterestis5percent。，heneedonlyputby？，000，orinsurehislifefor？，000。butifitis4percent。，hemustsave？0，000，orinsurehislifefor？0，000。
Itisthenpossiblethatacontinuedfallintherateofinterestmaybeaccompaniedbyacontinuedincreaseintheyearlyadditionstotheworld’scapital。Butnonethelessisittruethatafallinthedistantbenefitstobegotbyagivenamountofworkingandwaitingforthefuturedoestendonthewholetodiminishtheprovisionwhichpeoplemakeforthefuture。orinmoremodernphrase，thatafallintherateofinteresttendstochecktheaccumulationofwealth。Forthoughwithman’sgrowingcommandovertheresourcesofnature，hemaycontinuetosavemuchevenwithalowrateofinterest。yetwhilehumannatureremainsasitiseveryfallinthatrateislikelytocausemanymorepeopletosavelessthantosavemorethantheywouldotherwisehavedone。13*
10。Thecauseswhichgoverntheaccumulationofwealthanditsrelationtotherateofinteresthavesomanypointsofcontactwithvariousparts。ofeconomicscience，thatthestudyofthemcannoteasilybebroughttogetherinonepartofourinquiry。AndalthoughinthepresentBookweareconcernedmainlywiththesideofsupply。ithasseemednecessarytoindicateprovisionallyheresomethingofthegeneralrelationsbetweenthedemandforandthesupplyofcapital。Andwehaveseenthat：——
Theaccumulationofwealthisgovernedbyagreatvarietyofcauses：bycustom，byhabitsofself-controlandrealizingthefuture，andaboveallbythepoweroffamilyaffection。Securityisanecessaryconditionforit，andtheprogressofknowledgeandintelligencefurthersitinmanyways。
Ariseintherateofinterestofferedforcapital，i。e。inthedemandpriceforsaving，tendstoincreasethevolumeofsaving。Forinspiteofthefactthatafewpeoplewhohavedeterminedtosecureanincomeofacertainfixedamountforthemselvesortheirfamilywillsavelesswithahighrateofinterestthanwithalowrate，itisanearlyuniversalrulethatariseintherateincreasesthedesiretosave。anditoftenincreasesthepowertosave，orratheritisoftenanindicationofanincreasedefficiencyofourproductiveresources：buttheoldereconomistswenttoofarinsuggestingthatariseofinterestorofprofitsattheexpenseofwagesalwaysincreasedthepowerofsaving：theyforgotthatfromthenationalpointofviewtheinvestmentofwealthinthechildoftheworkingmanisasproductiveasitsinvestmentinhorsesormachinery。
Itmusthoweverberecollectedthattheannualinvestmentofwealthisasmallpartofthealreadyexistingstock，andthatthereforethestockwouldnotbeincreasedperceptiblyinanyoneyearbyevenaconsiderableincreaseintheannualrateofsaving。
NOTEONTHESTATISTICSOFTHEGROWTHOFWEALTH
11。Thestatisticalhistoryofthegrowthofwealthissingularlypoorandmisleading。Thisispartlyduetodifficultiesinherentinanyattempttogiveanumericalmeasureofwealthwhichshallbeapplicabletodifferentplacesandtimes，partlytotheabsenceofsystematicattemptstocollectthenecessaryfacts。TheGovernmentoftheUnitedStatesdoesindeedaskforreturnsofeveryperson’sproperty。andthoughtheresultsthusobtainedarenotsatisfactory，yettheyareperhapsthebestwehave。
Estimatesofthewealthofothercountrieshavetobebasedalmostexclusivelyonestimatesofincome，whicharecapitalizedatvariousnumbersofyears’purchase。thisnumberbeingchosenwithreferenceitothegeneralrateofinterestcurrentatthetime，iitotheextenttowhichtheincomederivedfromtheuseofwealthinanyparticularformistobecreditedatothepermanentincome-yieldingpowerofthewealthitself。andbtoeitherthelabourspentinapplyingit，ortheusingupofthecapitalitself。Thislastheadisspeciallyimportantinthecaseofironworkswhichdepreciaterapidly，andstillmoreinthecaseofsuchminesasarelikelytobespeedilyexhausted。bothmustbecapitalizedatonlyafewyears’purchase。Ontheotherhand，theincome-yieldingpoweroflandislikelytoincrease。andwherethatisthecase，theincomefromlandhastobecapitalizedatagreatnumberofyears’purchasewhichmayberegardedasmakinganegativeprovisionundertheheadofii，b。
Land，houses，andlivestockarethethreeformsofwealthwhichhavebeeninthefirstrankofimportancealwaysandeverywhere。Butlanddiffersfromotherthingsinthis，thatanincreaseinitsvalueisoftenchieflyduetoanincreaseinitsscarcity。andisthereforeameasureratherofgrowingwants，thanofgrowingmeansofmeetingwants。ThusthelandoftheUnitedStatesin1880countedasofaboutequalvaluewiththelandoftheUnitedKingdom，andabouthalfthatofFrance。Itsmoneyvaluewasinsignificantahundredyearsago。andifthedensityofpopulationtwoorthreehundredyearshenceisnearlythesameintheUnitedStatesasintheUnitedKingdom，thelandoftheformerwillthenbeworthatleasttwentytimesasmuchasthatofthelatter。
IntheearlymiddleagesthewholevalueofthelandofEnglandwasmuchlessthanthatofthefewlarge-bonedbutsmall-sizedanimalsthatstarvedthroughthewinteronit：now，thoughmuchofthebestlandisenteredundertheheadsofhouses，railways，etc……thoughthelivestockisnowprobablymorethantentimesasheavyinaggregateweight，andofbetterquality。andthoughthereisnowabundantfarmingcapitalofkindswhichwerethenunknown。yetagriculturallandisnowworthmorethanthreetimesasmuchasthefarmstock。ThefewyearsofthepressureofthegreatFrenchwarnearlydoubledthenominalvalueofthelandofEngland。Sincethenfreetrade，improvementsintransport，theopeningofnewcountries，andothercauseshaveloweredthenominalvalueofthatpartofthelandwhichisdevotedtoagriculture。AndtheyhavemadethegeneralpurchasingpowerofmoneyintermsofcommoditiesriseinEnglandrelativelytotheContinent。Earlyinthelastcentury25fr。wouldbuymore，andespeciallymoreofthethingsneededbytheworkingclasses，inFranceandGermanythan？wouldinEngland。Butnowtheadvantageistheotherway：andthiscausestherecentgrowthofthewealthofFranceandGermanytoappeartobegreaterrelativelytothatofEnglandthanitreallyis。
Whenaccountistakenoffactsofthisclass，andalsoofthefactthatafallintherateofinterestincreasesthenumberofyears’purchaseatwhichanyincomehastobecapitalized，andthereforeincreasesthevalueofapropertywhichyieldsagivenincome。weseethattheestimatesofnationalwealthwouldbeverymisleading，evenifthestatisticsofincomeonwhichtheywerebasedwereaccurate。Butstillsuchestimatesarenotwhollywithoutvalue。
SirR。Giffen’sGrowthofCapitalandMrChiozzaMoney’sRichesandPovertycontainsuggestivediscussionsonmanyofthefiguresinthefollowingtable。
CountryandLandHousesFarm-CapitalAuthorof