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 -5^— 
 
 NEW i'OLlTICAL ECONOMY 
 
 — J5. :P.2LI'EXa 03iT • 
 
 ECONOMIC SCIENCE, 
 
 Read before the Nova Seotia Institute of Science, 
 
 January 19tlj, 1891. 
 
 A. P. HEID, M. D., KTC. 
 
 Superintendent of the Nova Scotia Hospital for Insane 
 
 \ 
 
 GLADWIN, 
 
 StatlorLex a.xxd. Soo^xxxeblsex, 
 HALIFAX, N. S., CANADA. 
 
 -< S NOV/ 
 
 ^i%n^iiiii;B^ii^^igjifiiB^ii|i>V^ 
 
 NOVA SCOTIA PRINTING COMPANY, HALIt'AX. 
 
 /I 
 

 
 S^ 
 
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A 
 
 
 P 
 
 rOYERTY SUPERSEDED: 
 
 — -^ — 
 
 NEW POLITICAL ECONOMY. 
 
 -zs. ^'.js.^Eis oasr . 
 
 ECONOMIC SCIENCE, 
 
 Read before the Nova Seotia Institute of Science, 
 
 January 1% 1891. 
 
 m . 
 
 A. P. KEID, M. D., KTC. 
 
 Supennfaufcnf of the Xova Scotia Hospital for In. 
 
 sane. 
 
 (iLAD WIN, 
 
 Statlosaer a.n.d. Boo:k:Kiai:er, 
 HALIFAX, N. S., CANADA. 
 
 NOVA SCOTIA PRINTING COMPANY, HALIFAX. 
 
 RS" 
 

 POVERTY SUPERSEDED 
 
 NEW POLITICAL ECONOMY. 
 
 Read before fJie Nova Seofia Instlfnfe of Science, fuj 
 A. P. REIl), M. D., ih:, Superintendent of the Nom 
 Scotia H(>Kpltal for Insane, January J9th, 1891. 
 
 Mr. President and (Jendpnien : 
 
 Economic sci(Mice does not receive the attention whicli is 
 its due, and this must be my excuse for prese'itin*^ this paper to y<"i, 
 with the hope that discussion may malie its ^ rinciples more widely 
 known, 
 
 " The P()(jr ye have always with you." 
 
 Why is this tlie normal condition of the liuman family 1 And 
 how can their lot be made comfortable and independent 1 Let us 
 try to explain the cause ; for neither birth nor station can solve it, 
 and accident is insufficient. Excluding individual conditions we will 
 consider it in the concrete ami assume a condition tliat is not 
 imaginary. (I have lived in civilized and uncivilized countries where 
 there was neither poverty nor wealth, no jail, no dishonesty, and no 
 locks on the doors, because they were not wanted.) Place a colony 
 in anew country, where each one is given the same privileges, similar 
 lands and surroundings and conveniences, and then note the history. 
 All may be eipially industrious, but in course of time some will be 
 better oil'— tho«t! who have exercised most judgment in their labour, 
 
 H-Hl^t ^ 
 
who thou^'h not worldiij,' liardcr liihoiircd to more adviiiitagc, hy 
 anticiputiiif,' proltiihh; reverses owinj,' t(j the seiisons, markets, A'e., and 
 pructieing eeoiiomy in the management of their supplies and proiluets. 
 Nigpardliness, an injndieious eeonomy, in the longrnn is a faihn-e. • 
 We may deline Jufff/nifnf as Ix-ing care and tliought given to the 
 small things that go to make up the whole. 
 
 In time some have l»etter farms and crojjs than others, and they 
 see their way to empl:-y more 'ahonr. Others think they can do 
 better hy supplying the demand f(jr lahour and then purchasing more 
 or less of tlieir supplies, and no doul)t they are riglit, for l)Ut a small 
 numl)er of individuals have the mental alnlity to command or ilirect, 
 though most efficient producers under the management of a skilled 
 iidministrator. As this colony increases in wealth there is a natural 
 desire for more conveniences, mayhap luxuries, and some one of an 
 j-nterprising spirit attempts to supply this want. Others seeing his 
 success enter into competition, which has the etlect of diminishing the. 
 profits of both ; hut is to the advantag<' of the community. Thi.s 
 competition is likidy to increase, and tln-n; are two results likely to 
 follow, injury and benefit to the trader, and as well to the consumer. 
 E.\tra facilities being given to indulge in luxuries, the less Judicious 
 are apt to go beyond the means of payment, and buying on credit 
 anticii»ate the futiu'c. This has a far-reaching influence on buyer 
 and seller. 
 
 CKKDIT. 
 
 Let us consider this wonderful agency that may enriidi or jiauperize 
 — the producer, trader and consumer. To the trader or merchant it 
 means that he must increase the price of his waics to cover interest and 
 possible loss, but it also means that he can increase his sales and also 
 his profits, but uide.ss his business ability is adequate, he comes to 
 grief for being the michlleman between the jirodneer or manufacturer ; 
 and the customer, he may be crushed between both The one 
 not receiving his remittances closes down on him, and his customers 
 may be unable if not unwilling to pay their debts. The error of the 
 trader from a business point of view, (morally their is another side 
 tiiat should demand our consideration,) was that to increase sales and 
 pios{)ective profits he had allowed his customers to get more than they 
 could pay for, or he had the capital to cover. Poverty all round is 
 the result. The influence of credit on the buyer or consumer is also 
 two- fold, riches or pf)verty. If the credit i)urchase be something 
 
 1^ 
 
f^ 
 
 whicli will enable liiiii to increase his output, or prodtict with tlio 
 same lahour, then may he lie ahle to ])ay the ineroased cost of the 
 article thus ohtaineil and li'ave himself a balance to his credit. 
 Advantage to all concerned thus I'csults from judicious credit 
 transactions. If the article be a luxui'y then its purchase on credit 
 means that the consiuner mortaj^es a proltable surplus, which he has 
 not — which he may not have and very often does not get, and to that 
 extent may become a defaulter to the injuiT of either or all the 
 merchant or manufactui'er or pi'oducer, as well as himself. It is 
 quite pi'oper to imlulge in luxuries, but they shouhl be paid from 
 accrue(l prolits, and thus obtained at lowest rates, and all interested 
 are ]>roportioniit(dy benetitcd (,'oniniodore V'anderliilt's advice to 
 his son: "never buy what you cannot pay for," always was and 
 always must be the soiuid business princijde. 
 
 Returning again to oin- community with the advent of the 
 merchant, theie will Ix; mcjre wants, and special industries will be 
 inti'oduceil U) supply the demand for i)roducts requiring special skill 
 in theii' production. i\s a result we have the sti'atiticd society that 
 we find in civilizeil communities, which is accomi)anied l)y facilities 
 for individuals to indulge in capiices and vices as well as luxuries. 
 
 Want of forethought and judgment more than want (jf industry 
 will bring a certain nundu'r to poverty, wliich becomes intensitied as 
 an increasing popidation lowcus the wages for the less skilled varieties 
 of labour. In time '"living i'rom han<l to mouth" l)econies the 
 normal state of a great nundier, and they adopt the role of "living 
 to-day by fair means if we can, but live any way- -let to-morrow 
 proviile for itself." As a result the community mu.st support its 
 impecunious or less fortunate members, and we have the poor house 
 ami alli(!(l methoils instituted -where the church does not take on 
 itself this duty. I think it is .safi; to assume that the greater amount 
 of povertv is not so much the want (jf latiour or industrv as a want oi 
 the kncnvledge of how to live within the income — in some of the want 
 of the d( sire to do so. There is also a want of sufHcient facilities for 
 collecting and rendei'ing available the small savings of the many. 
 Hence many act on the motto "The wcnld owes me a living," and if 
 this be qualified with " if J do my best to earn it," then is the 
 argument unassailable, and to show how this (.-an be accomplished is 
 the object of this paper. 
 
A NKW POLITKAI. KCOXoMV. 
 
 "To liiy l)y s(iiu('tliiii<,' fur a niiiiy day " is a duty ovt'vy mn' owes 
 to society, and to favor this ol»jtv!t saviii<^s hanks and siniihir means 
 lmv(! heen inslituteil, iind tliou;,di tht^y are most valnahh-, experience 
 sliews that there is something re((uired more tlian we at ]iresent liave. 
 There is an unwritten law, very creditahly acted on hy c'"ilized 
 peoph's, that society shall educate and support all its niendiers who 
 may from any cause he unahle to do so for themselves; and there is 
 also a connn(!ndal)le feeling' that is not sidhciently oncouraj^'ed, I 
 Would say I'ather directed, wiiich is [iromiiient in almost every l)reast, 
 and which rol)els aj^ainst receiving' pauper aid or depiuulin},' on others 
 fovsui»port, (but hahit and demoralizati(tn have <freatly extin^niished 
 this fe(din<,' in many.) How shall we harmonize tlu'se duties and 
 desires'? Society is n'|)resented hy and appoints as its executive the 
 system that is generally known as f/ir d'ocn-iunent., and in using this 
 expression I will consider it solely as the agent, dire(,'tor, or executive 
 of sfjciety 
 
 Nince the riovernment, local or general, must assume the care of 
 the impecunif)us or incapahle, it should have the riglit to direct to 
 some extent the way the earnings of the community are disposed of, 
 and this leads to the principle underlying CottDtuinisni, a princy>/e 
 not so much qu(!stioned as the //<'7/(oc/.s designed to carry it out. This 
 is very well worked out })y Hellamy in his " Looking I'.ackwanl," 
 and also to a certain (extent bv Henrv (George in his '• Projiress and 
 Poverty," but in either case the plan is not ])racticable with society 
 as at present constituted. (Jeneral IJooth is attempting a plan with 
 prospO(;ts of success, but it is rather ada|)t(!d to relieve piesent want, 
 immorality and crime than a method which would eliminate them. 
 It is also exj)ensive. The suggestions F would wish to jn'offca- would 
 increase the wealth of the individual and of society from natural 
 causes and witliout extraneous aid or expense, .-,0 tliat without loss 
 there would be general benefit all round. An economic and })ractical 
 system that would avoid running counter to habits and prejudices is 
 desirable, and I will indicate the lines on which it may be worked. 
 — -The details would unduly lengthen this pai)er and I will merely 
 present 
 
 THE OUTLINES OK THE SCHEME. 
 
 1st. Give the Government the power to collect and retain a 
 percentage of the income of every wage earner, male or female, which 
 sum should be placed to his or her cretlit at interest. This capital 
 
to h(> rotaiiictl liy tin- ( lovrrimK-nt aiul ilispfiisftl hy tlinu in case tlit' 
 person needed relief, and if not so \ised to l)e an asset tlie same as if 
 it wiTc in the Savin-^'s' Mank. The pei'centaj,'e of wap's so retained 
 to he so small as not to ham|ier the individual in his business. Every 
 (lovernment niu>t honow. the ditt'erenee hein^' that in this ease the 
 money is nlitained in small quantities from the many in i)lace of at 
 present in larLfe sums from the few who have had special facilities for 
 iiceumulatin^', and prefer the safe investment in (lovernment securities 
 rather than that which is more tuiccrtain in commerce. 
 
 L'nd. It tl'i'i ^v()uld result that if the individual must set aside a 
 portion nf his earnin^'s, he must be furnisheil with a continuous 
 means of earnin<,' what will s\ip[tort his family, and with proper 
 system this could be arran^'ed, fur every country needs vastly more 
 labour exjiended in public works for the <reneral benefit than any 
 (lovernment has the means at hand ti th\is dispose of. l>ut with a 
 continuous tlow of money into the lie, miry this want would be 
 continuously met. The whole country would tlius become a mutual 
 benefit society— every oni* self-support in;^' and evory one with a 
 surplu.s. The ditl'erent lines of labo, : would need aiodilications. In 
 :ue industrial labour of the community every one should be al)le to 
 sell his suiplus products at market rates for cash, and (Government 
 stations should be provided fortius purpose to which every one could 
 go for purposes of sale if the ordinary avenues of trade did not absorb his 
 products, and this surplus retained to su])i)ly purcha.sers whwdlspo.so of 
 goods to consumers f(jr local use or exjiort. Xo (;har!4es to l)e made for 
 the conveniences of transfer other than sutticient to defray expenses 
 and the percentage retaineil ami i)laced to the credit of the i)arties 
 interested. All the diH'erent industries could be tliua regulated, the 
 Government agency lieing the medium of transfer to those needing its 
 assistance. It is not desiral^le that Government should interfere witii 
 or manage or attempt to contnjl the trade or business of the coinitry 
 in any way. lUit in case of stagnation of industry the Government 
 would a(!t as a regulator, or rather a reserv.jir into which surplus 
 products could flow and then flow out again as the demand aro.se for 
 them. At the same tune it would have to be given power to curtail 
 production when the supply far exceeded demand, and be empowered to 
 direct labour into some other channel. It could thus relieve the 
 labour market by furnishing employment to the mas.ses at reduced 
 rates, and relieve the misery whicii strikes, Jock outs or cfof/f/ed 
 markets impose on the wage earner who can do but little more than 
 
\8 
 
 supply hk ihnly wimts witli steady cinployniftiit. Tliorc are benctit 
 societies, tra<l(;s unions, ,tc., tliat collect funds from the workman and 
 utilize them as seems to them best, but it is open to ar^'ument that if 
 these funds were under control of the (Jovornment they might be 
 dispensed with gicater benefit to the contributors than that nu'thod, 
 (or often want of nietliod,) which now obtains. 
 
 3rd. All the Government dealings shouM be for ca.sh, oidy 
 retaining com,nissions, etc., as above referred to. Hence buying anil 
 selling at market rates, or a little under, there would be little chance 
 for loss, unhealthy speculation would l)e (controlled, and legitimate 
 business aided and expedited, for the agency would ])e unabh' to 
 enter into sj)eculation itself, as it must of necessity ])e re-iuired to 
 ])urchase from or sell to imy applicant at current rates. 
 
 The j.rofessions are non-i)roducers, and their labour would have to 
 be regulated by the ordinary laws of supply and demand, and in any 
 case as a class they do not become a i)ublic charge or swell the ranks 
 of poverty. They, like others, .should contrioute their percentage of 
 income and receive similar benefit. The colh-ction of this .savings' 
 fund should be neither dilHcult lu.r onerous and the machinerv simpL, 
 becau.s,. ,Mvry dollar paid in is so much to th.; credit of the party 
 pitying. The repayment to depositors, though held for theii' luMicfit 
 and that of their families, would reipiire to differ .somewhat fr.un the 
 ordinary savings' l)ank funds, the ( ioverimient would act as trustee, 
 and holding it ab.sojutely for the ],enelit of the lender and those 
 dei)endent on him it would most likely b,. best utilize.l ])y b,.i,)g 
 diverted to life insurance or annuity. When sickness or age incapa"- 
 citated those with no on.> dependent on them, the investors could u.se 
 their savings in paying for maintenance either in "homes"' managed 
 by the (ioviM'ument or other similar institi.ition.s, with this great 
 difierence from what now ..btains, that the recipie.it is not a i)a'iiper 
 but lives on his own earnings. The ordinary aiituary's tables eau tell 
 how much per aiuium the inondty would amount to for a given sum 
 for a i)er.son of a given agv. At his d.>ath all ch-bts are cancelled as 
 between him and the ( Jovernment, In case a per.son were leaving 
 the country it is a question whether it w(»uld be the lu-tter way to pay 
 to him his .saving.s, as he might return and become a i)ulilic charge 
 were it credited to him as life insurance might be the preferable form 
 but this detail would l)e settled by experience, the ju'inciple of 
 justice to be th(> -uide. Hy a system like this no loss could accrm' to 
 either party, deposit money would be .safe, a matter of the <rreatest 
 
 I*; 
 
9 
 
 ^i 
 
 moment to the workman win. j.uts away his little savinKs, too often 
 lost by the faihu'e of the .speculative monetary institutions to which 
 they hail l)een entrusted. From the saving habits of cur people a 
 system lik(! this c«.uM he very smoothly worked. M„\v many 
 thousands are there wlio would caiefully set aside from tlx-ir earnings 
 if they knew tliat it coidd he held in trust solely f,.r their future neeiKs, 
 and that their comforts would ])e enhanced in proportion to the sum' 
 they eoul.l a.-t to their credit. Furnish the (J.-vernment with the 
 means and the needed n.ads could ])e built which would make ndllions 
 of acres ..f jro,,,] Jan.l available f..r .settlement and improve the milli..ns 
 of acres now .setth-d that have very poor facilities for inter-communi- 
 tion or n'achin^r a market. A .system .s.. elaborate as is thus indicated 
 IS not immediately i)racticable, but an approach towards it is possible, 
 and the way would gradually op.n up foi' its fullilment. The best 
 means of introducing it would he as follows : 
 
 I. Savi.vos' Banks. 
 ^ A good start lias been made ])y the general distribution of " post 
 office .savings' baidv.s.'* and as well the commendable system of " school 
 savings' l.a.dv../' that have been a featmv of the Dartmouth ouhjic 
 schools (here) for a long time. It wouUl be necessary, how,.ve'r, for 
 the ]*rovince to recur to the .syst.'in of Provincial Savings' I'.ank that 
 was .so sati.sfactorily managed before ( 'oiifcderation, (and well carried 
 out since.) That the commercial ])anks are opening out in the same 
 line is in .so far well, but the ( bnernment should a.ssure their stability, 
 for many banks of Ix'st lui.siness respectability have failed and brought 
 misery, j.overty, and ruined hopes to the most deserving of the 
 ]>cople, while destroying that confidence in the future so lu'cessary to 
 the successful result of money saving. The management of a 
 commercial bank may lie irreprochable to-day and may have be.-n so 
 for a hundred year.s, but no ..ne can guarantee the success of future 
 management. J ct)uld cite too many illu.stiations if it were needed. 
 
 II. Like IxsriiA.vci:. 
 The (loveriimeiit sIkmiM institute a general .sy.stem of life insurance 
 based on the lines whicii Ih,. experience of the past century has 
 jM'oved to be successful. It was at one time reported that Sir Charles 
 Tupper had such a scheme on his programme, but that the opi)osition 
 of the many life insurance companies burked it, a^ they did not favor 
 such a:. o].i)osition, for no doubt the greater number would patronize 
 the Government .system, as it would be cheaper while giving perfect 
 security. The expenses attending its management would be few 
 
10 
 
 \ . , 
 
 (•oinparod with what now obtains, and this is the strong argument in 
 favor of its ('.staVilisliinc.nt. 
 
 III. Annuities. 
 A system of annuities in (ionnection with savings' bank and life 
 insurance should also be inaugurated with a result so likely to be 
 satisfactory that I need present no argument in its favor. These three 
 systems would be uniler tlu! department of Hnance, and run with the 
 same machinery and offices the cost of management would thus be 
 trifling on the large volume of business concentrated in th<' one 
 department. As an oi)jection to this it may be nrged, that we have 
 savings' banks, life insurance and annuity companies, and there is no 
 need for the (Government to enter into competition with them ; my 
 answer would be : 
 
 1st. Th(!se a-^.sociations are only patronized by the few who have 
 the ability to select the most desirable companies, and they are often 
 losers by failure of these (concerns. 
 
 2nd. Tliese is no al)solute guarantee of safety in any company, 
 as before referretl to, and with the Government this is uiKiuestionable. 
 3rd. Insurance as offered costs too much, for the expense 
 attending its oi»eration, in advertising, agencies and risks from 
 investments may reach as high as 20 per cent, of the in('ome, and this 
 must be with ordinary or speculative business — from comj^t^tition. 
 However, with the system suggested this difficulty of cost is eliminated. 
 It need be no greater than the savings' bank entails, which is an 
 almost inappreciable percentage on the cost of management, and this 
 will diminish as the volume of business increases. The saving thus 
 effected would go towards lessening tne cost of insurance without 
 entailing any risk of loss to either party in the contract from the 
 lowered rates. That the present (;omi)anies would not like it is to be 
 expected, but the management of a country cannot be run solely in 
 tlie interest of these linancial corporations. Yet there is no reason 
 why these institutions should not continue to carry on their respe(!tive 
 business with those who have the means and knowledge to engage in 
 these commercial transactions, and to favor their business the Govern- 
 ment, as in the case of savings banks, could limit the amount of 
 insurance, .^c , to that sum for each individual investor which, in the 
 judgment of the (Government, would be sufficient to carry out its design, 
 a naffieiPMt fund for every citizen so that he shall not be dependent on 
 puhlic aid for his support. This accomi)lished there shouUl bo no 
 inlerferen<;e with the ordinary busineos of the country, or any restraint 
 
11 
 
 placed on those who si)eculate in Hnunco. The Governmant mifflit insure 
 every api)li.ant who conld comply with its regulations up to say.Sr),000, 
 but it is a great question if it would b(! desirable to go a far as .|10,000 
 much less $50,000. Practically the class wiio would chiefly patronize 
 the Oovernnient insurance now patronize none, and the wealthier 
 clients would still re(iuire to do their business with those with whom 
 they have all along been dealing. 
 
 The plans al)ove suggested do not call for any increased taxes for 
 any increase in the de])t or liabilities of the countn-, nor any risk. 
 For since the (lovernment is always a ])orrower, and always will be, 
 (such is the history <.f every country,) they would thus get a large 
 amount of the money they want, and the interest pai<l to depositors 
 and investors would be th(> current rates on Government loans. It 
 cannot be a (juestion of risk or experiment, for the basis of this 
 business as conducted by relial)le corporations has heen so thoroughly 
 tested and explored that it is not a question of chance. An actuary 
 can give all the figures and the most minute details on the whole 
 subject of the above three suggestions. I am not aware of any failure 
 of a life insurance company that was due to any error of the acituary's 
 tables. The cost of investment, risk and pxpennes are the difficult 
 problems, and all these are eliminated as above explained. For the 
 benefit thus conferred the people — the investors -wouhl i)ay all the 
 expense and yet be tiie gainers by a large percentage. It need not 
 take six months to start the whole in successful operation. 
 
 ABOLrrroN (^f Law foh Collecting Debts. 
 To favor success, and in any case it is desirable that we should 
 have such legislation as would, as far as possil)le, promote economy 
 by r. .-moving tlie facilities for '* ruiuiing in debt." How to do this 
 has long been a (luestion with legislators injustice to dealers and 
 merchants, and inconvenience or hard.ships to buyers or customers 
 must be avoided as much as j)ossil)le. This much could \w done, 
 wages owing to a debtor with a family dei)endent on him should not 
 be seized for debt. This now obtains in some cases, and where not 
 so at present the proceeds from life insurance and ainiuities should be 
 similarly protected. Different countries have of (course different laws 
 — the homestead act for example — and such a law is necessary with 
 human nature as we generally find it. If debts could not be collected 
 hij law, then, as all parties would be aware of this, debt would not be 
 contracted on fictitious grounds. This is now the practice in the 
 great majority of the smaller transactions, and it could easily be made 
 
12 
 
 tlie rule, as sueintr for debt is unsatisfiictory all round. I liavo 
 personally had the experience of living in countries where no debt 
 could be collected, and transactions involving many thousands, a great 
 part on credit, were of daily occurrence amongst a class also who 
 made no sp.icial j)retensions to honc^sty, yet though crime and even 
 murder were rife, no case ever occurnMl, to my knowledge, where a 
 quarrel, let alone worse, ever occurred. A debtor failed to pay, it 
 was accepted as one of the incidents of business or a failure of l)iisiness 
 judgment on the part of the ci'cditor NVithout doul.t it would be a 
 beneficial law whi(!h would exiMnjtt from collection for debt any 
 ])roi)0!'ty less thai' (say) .$400, either in real estate or securities, that 
 is to say, unless a person were worth more than $100 in tangible 
 pro])erty he could not be sued, it might be well to put in a proviso, 
 " wh(!n he has a family or others wlio depend on him or her for their 
 maintenance," on the princii)le of justice generally acted on, '' per- 
 sons shall not be i)unished for what they were unable to nrevent." The 
 dependants suifer more than the principal in the case of imin-isonnnMit 
 or legal i)rocesses for debt. The single man or woman is in adiffei'ent 
 category, and in their case, though desirable, a change of law is not 
 so necessary. In the ordinary march of events imprisonment for debt 
 is likely to be done away with. Details, too lengthy for this paper, 
 are n.-eded, so as to prevent fraud (as far as possible,) in those who 
 might wish to make illegitimate use of a beneKcent law. 
 
 The recommendations just givcm could be easily carried out 
 without running counter to the prejudices and opinions of the world 
 at large, but they do not go far enough, and as this is a matter of 
 more than ordinary im]»ortance, you will excuse.' me if I furnish some 
 more arguments in favor of the wider scheme. 
 
 This subject has not received correc't consideration, or rather that 
 custom eiidxidied in law ha^ thus come down to us from a " later " 
 anti(piity when conditions jirevailed far dilferent from those of to-day. 
 Experience has taught that J<iic for rompulsorij coUecfion of debt is 
 practically a failure, ami business men have been forced to adopt the 
 " black list " system, or tliat which is more euphonious and genteel, 
 as well as more etticieiit, the "mercantile agency," which is a 
 ne(;essary adjunct to the businsss of the world. Details of which are 
 not needed here. This Inw has also a most marked intluence tending 
 to fraud, by favoring the transactions of people who, either from 
 ambition or desire to shirk work, enter into business with neither the 
 rcfjuisite capital nor knowledge while it opens up immeasurable 
 
 i 
 

 1 3 
 
 o])portunitips for fraud to the many wlio intentionally adopt this role of 
 life. All the larfje Inisiness transactions of the world would be 
 uninfluenced, (in ten years time,) if this law were aliolished. For 
 example, does aisy one fur a moment consider it practicable or 
 (;alculate on the a])ility to collect on Oovernment loans if jwyment 
 were refused, and yet " rejmdiation " is not an uid^nown factor in 
 thes(' transactions ? How jnany mei'chants ti<fure on h'ffally collecting 
 debts from their foreign customers'? and when they do attempt lu)W 
 mucdi do they make out of it? Mortgages, bills of sale, and many 
 similar transactions rather belong to business att'aiis than what is 
 ordinarily considered as debt. 
 
 Every business man knows that the volume of commerce is not to 
 any a))preciable extt'ut influenced liy any other conditions than the 
 demand and ability to pay in cash or products, and as well that the 
 oidy s(!rious object that it has to encounter is the merchant lacking 
 capital and ability, who ultimates in failure with little or nothing to 
 be collected, though there be law of the most stringent kind. V^'hat 
 is the e.vperience (if the world with regard to baid<ru[)tcy laws % Are 
 they not to a gr at extent failures — and the legislators in most coun- 
 tries on the hunt " for a good (nie " which, like the rainbow, is visible 
 at a distance, and at a distance ()nly ? How many are there who 
 (gandding on the hunor which does and must obtain between mer- 
 chants), enter into I'usiness, with this l;iw fcu' sjxmsor, and fraud the 
 whole object .' ( >f wliiit avail is the ability to collect a debt when 
 there aie no assets ? -this the fraudident de1)tor arranges very care- 
 fully— "you cannot draw blood from a turni]) I" There cf)uld be no 
 more c!U'efuIly de-igned method for favoring dishonesty than to have 
 the belief etu'ouraue 1 that " if a man goes into debt he can be made 
 to pay."' It gives the ('rcditor false secuiity, and the ftutuil perfect 
 protection — the honest man does not need it as it is of no .service to 
 him. Would any dealer trust, " law or no law,"' if he thought his 
 debtor were dishonest ! Remove this false seciuity and would any 
 one be injured except the fraud 1 Would there not be more care 
 exerci.«ed in giving credit 1 and would it not be for the benefit of all ? 
 W'ould not the ambitious man with little capital and experience be 
 immeasurably the gainer if his business were limited to his (.'apacity 1 
 For he would thus be compelled to get the experience which the time 
 spent in woi'king up the smaller and safe business would give him, 
 and so prevent what would otherwise be- -failure. Would it not 
 save the wealth, reputation and comfort of thousands who, with a 
 
 i 
 
14 
 
 small capital in inoii(>y or |>i'Oi\erty, enter into business of which they 
 know nothin<f, and expect an impossibility — success'? They ruin 
 themselves and those trusting them, owing to the false security this 
 law gives. 
 
 Let us look at it from another point of view. "What ])ercentage 
 of collected debts go to the creditor'? Ask any merchant The 
 answer would likidy be a smile. Ask how much money, worry and 
 annoyaiKH! " collection " has cost him — the answer would not lie a 
 smile ])ut a grimace. Abolish the laws for collection of debt, and 
 after a few yeai's had ])assed, when the business waters had become 
 l)lacid aft(!r the disturbance, and does any one think for a moment the 
 volume of business would be contracted 1 Were affairs running in 
 the new groove, is it i)rol)able there would be a reversion to our 
 pres(!nt method which would l>e an insult to our most ancient fathers 
 to call antediluvian 1 Moses, the ancient and wise law-giver, so clearly 
 saw the necessity for somcithing of the kind that seven years closed 
 out collection of d<d)t, and this is at ])resent recognised in the 
 " limitation acts." We could greatly improve our j)resent laws by 
 making it— for one year -any debt not (collected within the year to 
 become a delit of honor ; and the reform would be moi'e nearly per- 
 fect that abolished the law "in toto," trusting to business ability and 
 honor,— for they always have, do now, and always will control the 
 business transactions of the world — great and small. "We ct),.id thus 
 close one of the chief avenues for fraud, prevent competition that is 
 injurious to all, and raise the grade of the merchants as well as cus- 
 tomers by training good business men, and make the Mercantile 
 Agency a success even more than it is now. 
 
 COM PULSORV EC()X( )M Y. 
 When progr(?ss had thus far been made, the (xovernment could 
 insist on c^very wage-earner depositing a percentage of the earnings 
 to its care as trustee; for his ov her l)ehoof and that of the family. 
 Details I will not at present offer. The wage-earner would justly 
 answer : My capital is labour or its product. I can givt; a per- 
 centage of that if from any cause my employment is not continuous or 
 demand for the prndncts fitful. Hence, as previously referred to, the 
 Government should have a systematized method of receiving labor or 
 its i)roduct at, if anything under, never over, market rates — with also 
 the power to divert labour intft the most convenient channels. This 
 would not be so dilhcult in the case of industrial laliour, because its 
 products can l)e utilized, s* )red or made marketable in any case. 
 
15 
 
 Witli professional labour this would not obtain, as its products 
 ■can not be warehoused, exiiortod, or used in any way luiless to sup- 
 ply an immediate or personal demand. This would rectify itself, for 
 the persons thus engaged are rarely in want. If a doctor has no 
 patients — a lawyer no clients, they turn their knowletlge and energy 
 into other lines of work — and so on for the long list of professiontil 
 avocations. 
 
 Tlie full developement of this plan would mean that every wage- 
 earner would have constant eni])loyment in some form — if f)rdinary 
 avenues became blocked, then the (iovernment would fill the want by 
 putting the labor into .some form of j)ublic work, at wages which 
 would not compete with industrial business. This opens uji a wide 
 fieltl of argunuMit that I cannot at ])resent enter on, — suffice to say, 
 to my mind the "march of events " are proceeding in this direction, 
 and though they may be delayed, they cannot be stayed, liy antici- 
 pating the inevitable a crisis is avoid(Ml, and 1 hesitate not to a.ssert 
 thiit the history of the world fails to shew that rationally directed and 
 productiv(^ industry ever injure 1 any country, and that benefit has 
 invariably resulted therefrom. This province; has room for. and need 
 of, the iu<lustrial labor of ten times its present j)o])ulation This 
 system must be tentatively and judiciously woi'ked out, and though 
 there may be jiartial failures, the result must be successful, for the 
 principle on which it is based is correct. 
 
 So far society has de})ended on the ability of the indiviihud to 
 nuniage the increasing mass of labor, and as might have been expected, 
 the individual works chiefly for his personal gain, and wielding those 
 l)0werful engines — cajntal and combination — the ideal state of society 
 assumed at the beginning of uiis paper has been obliterated. Yet 
 capital and combination are not invulnerable. iStrikeii paralyze it, 
 but they react with great violence on the other side. They are, 
 however, the natural result of the preceding conilition and will continue 
 whilst it obtains and until society, as represented by Government, 
 undertakes — 1 would sav will be forced to undertake -the regulation 
 of industry. In our jjrovince there are few difficulties of this kind 
 so far, and the system suggested could be easily worked out, with the 
 result that combinations and strikes would be incapalile of causing 
 serious injury to either the worker or manufacturer. If the laborer 
 could always get emi)loyment he wouW not be forced to work for any 
 one he thinks illuses him, and the manufacturer woidd need to adjust 
 the ])rice of wares to the cost of production. As the Government 
 would not pay more than nuirket rates for labor, it woidd not 
 
16 
 
 injuridU.sly ('<»inp('t(' with any iiulustry. It would in fact Ik' a .sai'Ktv 
 VAIAK to jKM'iiiit a super-alnuidaiico to How into otluT channi.'ls and a 
 UAi-AN("K wiiKKi, tliat would k<'('|) tli(! lalior market movini; with 
 r('<,MiIarity ami a ukskhvoih that coidd ivccivc in time of cxcctssive 
 supitly and j^nvc out ayain as the demand reiiuired it, l)ut the (lovern- 
 meiit need not interfere with the onlinary l)nsines,s of the country any 
 more tlian it does now, neither is it desiralilo that it sliould interfere 
 witli tlie inde])enden{'e of the individual in any way. 
 
 I hav<' not referreil to crime, dissipation or drunkenness as factors 
 in tfeneratiiiff jjoverty, hecause it is oidy included indirectly under the 
 lieadinj^f of this papei', which is long enough now, because a large 
 amnunt of energy (in sonu- ways misdii'ecleil, mayhaji), is now 
 enlisted in their amelioration, lint chiefly Ix'cause if the suggestions 
 of this paper were carried out, they avouM not he such weighty 
 factors in the management fif society. Vov if every one were husy 
 at woik all the time, and if every one were the possessor of capital 
 even though small in amount, crime and dissipation would greatly 
 disappear, for they aic incnm]iatihlc with the conditions given. In 
 eveiT college, school, office and slio]) the (iOI.nKX UL'NK must be ke|)t 
 continually before the minds of the peo|)le. Nf-;vki{ (io in pkht koii a 
 
 I.L'XLMIV OU WHAT TAN MIC DONK WITHorT. and ONI-Y ITfU'IIASIC (iX CRKDIT 
 THAT WllICJI WILL INCHKASIC THE ABIMTY TO I>AV I'OK ITIK I'UKCHASE. 
 
 VjVvu in this, so gicat is the consideration refjuired, that at no time 
 should such a credit be accepted, unless under the mosl adverse 
 ciirumstances a demand for jjayment can b(> met without injui'ing his 
 business or impoverishing the individual. 
 
 The preceding suggestions are not otfenMl as a new discovery, but 
 they are the result, .so far, of the observations and exjierience of a 
 varied life. There is nothing reconinuMuhnl that could not be easily 
 carried out without, even entailing expense, and the result properly 
 Worked out would revolutionize society, by enthroning comfort and 
 independence on the cold and heartless pinnacles of crinu',, dissij)ation, 
 poverty and mi.sery that overshadow every civilized land. Darkness 
 will give way to light, and the sombre become suffused with joy. 
 
 In Conclusion— POYKKTV WILL 15E SUPERSEDED when 
 tlie peo[)le can accumulate a surplus capital and every one sure (.)f con- 
 stant employment, ami the NEW POLITICAL ECONOMY can with 
 energy and judgment, insure the above conditions. 
 
 A. P. RBID. 
 
 Mount Hope, Jlalifiiji\ X. S.A 
 
 January, ISUl. j 
 
 '\'W:"'-i 
 
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