his motives for expenditure. We can only point out illiberal parsimony and extravagant prodigality as extremes to be avoided; there are so many gradations in the scale between them, that every man must draw the line for himself, according to the dictates of his good sense and his conscience, and in so doing should consult the moral philosopher as well as the political economist. He who has a large family to maintain and establish in the world, though more strict economy be required of him, cannot be expected to make savings equal to those of a man of a similar income, who has not the same calls for expenditure. But however large a man's income may be, he has no apology for neglect of economy. Economy is a virtue incumbent on all. A rich man may have sufficient motives to authorise a liberal expenditure, but he can have none for negligence and waste; and however immaterial to himself the loss which waste occasions, he should consider it as so much taken from that fund which provides maintenance and employment for the poor. INDEX. ACCUMULATION of wealth, 72. A. Adulteration of the coin of the country, 302. has been adopted in almost all countries, 304. Agriculture, introduction of, 15. 35. 158. whether preferable to other branches of industry, 185. of the proportion it should bear to manufactures and most advantageous to newly-settled countries, 189. Métayer, system of, 245. Agricultural produce, high price of, 202. not susceptible of unlimited increase, 203. causes of its high price, 207. causes which lower its price, 208. high price of, necessary to proportion the consumption to the first commodity which a country exports, 337. Alms-giving, effects of, 152. 155. America, increase of population in, 126. exports corn, 337. agriculture of, 357. effects of its discovery on the industry of Europe, 295. Annuitants, affected by the exchangeable value of money, 287. B. Balance of trade, 367. popular error respecting it, 377. Banks, saving, advantages of, 150. Banks, issuing notes, 306. restriction of paying in specie, 311. Barter, origin of, 55. Benefit clubs, or friendly societies, advantages resulting from, 148. Bills of Exchange, their use in foreign commerce, 366. Blackstone's Commentaries, extract from, on civil liberty, 37. Buchanan's edition of Adam Smith's Essay, passage from, on C. Canals, advantages arising from, 327. 329. Capital, origin of, 73. employment of, 75. 88.. profits derived from, 77. 81. necessary for all productive enterprises, 82. 165. definition of, 101. of a country, 107. 383. effect of its increase on profit and wages, 108. effect of its diminution, 110. increase of, in America, 125. various modes of employing it, 184. required for agriculture, 230. 233. lent at interest, 261. quick return of, in the home-trade, 332. expenditure of, 384. increase of, always advantageous, 406. Cheapness, beneficial only when it arises from a low cost of production, 178. 179. only nominal when arising from scarcity of money, 284. 287. Circulating capital explained, 89. Civilisation, progress of, 38. Civilised state of society, 16. Clarke's (Dr.) Travels, extract from, on insecurity of property, 47. Coined money, antiquity of, 280. advantages of, 281. Coin, adulteration of, 302. Colonies, establishment of, 145. Commerce, a mode of employing capital, 319. foreign, 330. 335. advantages of, 333. 335. Competition of sellers reduces prices, 346. productive, and unproductive, 385. Corn, unknown origin of, 40. -trade, 352. home and foreign supply of, 353. natural high price of, 165. Cost of production of commodities, 163. 165, diminished, cause of cheapness, 178. Creditor, public, how repaid, 272. D. Dairy, establishments of Fruiteries in Switzerland, 249. Demand, definition of, 105. for labour, on what it depends, 125. for the necessaries of life, 204. and supply, 172. Depreciation of money, its effect on price, 301. passages from Adam Smith on, 59. 60. 62. its effect on the moral and intellectual faculties, 68. Economy, 406. E. Edinburgh Review, extract from, on small farms, 254. Emigration, a resource for redundant population, 143. under some circumstances injurious to a country, 146. Employment of capital, 78. 104. Exchange, bill of, its use in trade, 369. unfavourable, or below par, 371. premium on, 373. unfavourable, promotes exportation, 371. how affected by depreciation of currency, 374. Exchangeable value, 162. 182. definition of, 162. and natural value do not always coincide, 174. of money, what classes of men affected by its variations, 289. Expenditure, 85. 382. distinguished from consumption, 385. Expenditure of capital, its consequences, 276. 386. Exportation of corn, under what circumstance advantageous, 358. F. Farmers, exposed to small risks, 201. require capital, 249. Farms, small, objections to, 247. what size most advantageous, 252. size of, in Belgium and Tuscany, 253. Fisheries, rent of, 257. Fishing, capital required for it, 82. Fixed capital, 90. Foreign trade, 333. advantages of, 336, 337. advantages to both countries engaged in it, 344. Gardens, for cottagers, 158. G. Garnier, extract from, on the employment of capital, 192. effects of, 179. Gold, how paid for, 282. coins, antiquity of, 279. bullion, the standard of value of coined money, 314. and silver, effect of its influx in Spain, 377, 378. Goldsmith's Deserted Village, passages from, on small farms, |