Page:Encyclopædia Britannica, Ninth Edition, v. 19.djvu/410

Rh POLITICAL ECONOMY or violent revolution, and rejects any system of life which would set up &quot; abstract equality &quot; against the claims of individual service and merit. The further the investigations of the German historical school have been carried, in the several lines of inquiry it has opened, the more clearly it has come to light that the one thing needful is not merely a reform of political economy, but its fusion in a complete science of society. This is the view long since insisted on by Auguste Comte ; and its justness is daily becoming more apparent. The best economists of Germany now tend strongly in this direction. Schalfle, who is largely under the influence of Comte and Herbert Spencer, has actually attempted the enterprise of widening economic into social studies. In his most important work, which had been prepared by previous publications, Bau itnd Leben des socialen Korpers (1875-78 ; new ed., 1881), he proposes to give a compre hensive plan of an anatomy, physiology, and psychology of human society. He considers social processes as analogous to those of organic bodies ; and, sound and suggestive as the idea of this analogy, already used by Comte, undoubtedly is, he carries it, perhaps, to an undue degree of detail and elaboration. The same conception is adopted by P. von Lilienfeld in his Gedanken uber die Sodalwissenschaft der Zukunft (1873-79). A tendency to the fusion of economic science in sociology is also found in Adolph Samter s Sozial-lehre (though the economic aspect of society is there specially studied) and in Schmoller s treatise Ueber einige Grtmdfragen des Bechts und der Volkswirthschaftslehre ; and the necessity of such a trans formation is energetically asserted by H. von Scheel in the preface to his German version (1879) of an English tract On the present Position and Prospects of Political Economy. The name &quot; Realistic,&quot; which has sometimes been given to the historical school, especially in its more recent form, appears to be injudiciously chosen. It is intended to mark the contrast with the &quot;abstract&quot; complexion of the orthodox economics. But the error of these economics lies, not in the use, but in the abuse of abstraction. All science implies abstraction, seeking, as it does, for unity in variety ; the question in every branch is as to the right constitution of the abstract theory in relation to the con crete facts. Nor is the new school quite correctly dis tinguished as &quot;inductive.&quot; Deduction doubtless unduly preponderates in the investigations of the older econo mists ; but it must be remembered that it is a legitimate process, when it sets out, not from a priori assumptions, but from proved generalizations. And the appropriate method of economics, as of all sociology, is not so much induction as the specialized form of induction known as comparison, especially the comparative study of &quot;social series &quot; (to use Mill s phrase), which is properly designated as the &quot;historical&quot; method. If the denominations here criticized were allowed to prevail, there would be a danger of the school assuming an unscientific character. It might occupy itself too exclusively with statistical inquiry, and forget in the detailed examination of particular provinces of economic life the necessity of large philosophic ideas and of a systematic co-ordination of principles. So long as economics remain a separate branch of study, and until they are absorbed into sociology, the thinkers who follow the new direction will do wisely in retaining their original designation of the historical school. The members of the historical school have produced manv valu able works besides those which there has been occasion to mention above. Ample notices of their contributions to the several brandies of the science (including its applications) will be found dispersed through Wagner and Xasse s Lchrlmch and the comprehensive Handbuch edited by Schbnberg. The following list, which does not pretend to approach to completeness, is given for the purpose of directing the student to a certain number of books which ought not to be overlooked in the study of the subjects to which they respectively refer : Knies, Die Eisenbalmen vnd Hire Yirkungen (1853), Der Telegraph (1857), Geld und Credit (1878-76-79); Hosier, Zitr Kritik der Lfhre vom Arbeits/olm, ]S(il ; Sehmoller. Zur Geschic/ite der deuttchen K/eirtgetrerbe im 19 Jahrh., 1870 ; Schaffle, Thf.orie der ausschliessetiden Absatzvcrluiltnisse (18&amp;lt;&amp;gt;7), Quintessenz des tiocia/i.i- 7iius (6th ed.. 1878), Grundsatze. der Steiterpolitik (1880); Nasse, ifitteliilterlirhe Feldgemeinschaft in England, 1809 ; brentano, On Hie History and Development of Gilds, prefixed to Toulmin Smith s English Gilds (1870), Die Arbeitergilden der Gegemcart (1871-72), Dan Arbci/svcrhaltniss pemciss dem heutigen Hec/it (1877), Die Arbeitsrersicherung gemass der heutiijen Wirthxchajttordnung (1879), Der Arbeit.n-ersic.lieningsncang (1881); Held (born 1844, accidentally drowned in the Luke of Thnn 18SO), Die JSintommenttever (1872), Die deiitsc/te Arbeiterpresse d,-r Gtgemcart (1873), Sotialismus. Sotialdemokratie, und Sozialpolitik (1878), Grundriss fur Vorlesungrn iiber National-okonomie (2d ed., 1878); Zicei Hucher zur socialen Gescltichte Englands (posthumously published, 1881); Von Scheel (born 183i)). Die Theorie der socialen Frage (1871), Untere social-potitisclu n Parteien (1878). To these may be added L. von Stein, Die Vencaltungslehre (1876-79), Lehrbuch der Finanzwisseiitchaft (4th ed., 1878). E. Diihriiig is the ablest of the few German followers of Carey; we shall mention his history here after. To the Russian-German school belongs the work of T. von Bernhardi, which is written from the historical point of view, Versuch einer Kritik der Gritnde trelche fur grossfs vnd kleines Gnmdeigenthum angefiihrt irerden, 1848. The free-trade school of Germany is recognized as having rendered great practical services in that country, especially by its systematic warfare against antiquated privileges and restrictions. Cobden has furnished the model of its political action, whilst, on the side of theory, it is founded chiefly on Say and Bastiat. The members of this school whose names have been most frequently heard by the English public are those of J. Prince Smith, who may be regarded as its head ; H. von Treitschke, author of Der Sociutismus und seine Gunner, 1,^75 (directed against the Katheder-Socialisten); V. Hiihmert, who has advocated the participation of workmen in profits (Die Qevinnbetheiligung, 1878) ; and J. II. Schultze-Delitzsch, well known as the founder of the German popular banks, and a strenuous supporter of the system of &quot;co-operation.&quot; The socialist writers, as has been already mentioned, are not included in the present historical survey, nor do we in general notice writings of the economists (properly so called) having relation to the history of socialism or the controversy with it. The movement which created this school in Germany, with the developments which have grown out of it, have without doubt given to that country at the present time the primacy in economic studies. German influence has been felt in the modification of opinion in other countries most strongly, perhaps, in Italy, and least so in France. In England it has been steadily making way, though retarded by the insular indifference to the currents of foreign thought which has eminently marked our dominant school. Alongside of the influence thus exerted, a general distaste for the &quot; orthodox &quot; system has been spontaneously growing, partly from a suspicion that its method was unsound, and partly from a profound dissatisfaction with the practice it inspired, and the detected hollowness of the &quot; Manchester &quot; policy of mere laissez faire. Hence every where a mode of thinking and a species of research have shown themselves, and come into favour, which are in harmony with the systematic conceptions of the historical economists. Thus a dualism has established itself in the economic world, a younger school advancing towards pre dominance, whilst the old school still defends its position, though its adherents tend more and more to modify their attitude and to admit the value of the new lights. Italy. It is to be regretted that very little is known in England of the writings of the recent Italian eco nomists. Luigi Cossa s G uida, which was translated at the suggestion of Jevons, has given us some notion of the character and importance of their labours. The urgency of questions of finance in Italy since its political renas cence has turned their researches for the most part into practical channels, and they have produced numerous monographs on statistical and administrative questions. But they have also dealt ably with the general doctrines of the science. Cossa pronounces Angelo Messedaglia (b. 1820), professor at Padua, to be the foremost of contem porary Italian economists ; he has written on public loans (1850) and on population (1858), and is regarded as a master of the subjects of money and credit. His pupil Fedcle Lampertico (b. 1883) is author of many writings, among which the most systematic and complete is his Economia dei popoli e degli stati (1874-1880). Marco Minghetti, distinguished as a minister, is author, besides other writings, of Economia pubblica e le sue attinenze colla morale e col diritto (1859). Luigi Luzzati, also known as an able administrator, has by several publications sought to prepare the way for reforms. The Sicilians Vito Cusu-