Socialism，which，likethegodVishnu，everdyingandeverreturningtolife，hasexperiencedwithinascoreofyearsitsten-thousandthincarnationinthepersonsoffiveorsixrevelators，——socialismaffirmstheirregularityofthepresentconstitutionofsociety，and，consequently，ofallitspreviousforms。Itasserts，andproves，thattheorderofcivilizationisartificial，contradictory，inadequate；thatitengendersoppression，misery，andcrime；
itdenounces，nottosaycalumniates，thewholepastofsociallife，andpushesonwithallitsmighttoareformationofmoralsandinstitutions。
Socialismconcludesbydeclaringpoliticaleconomyafalseandsophisticalhypothesis，devisedtoenablethefewtoexploitthemany；andapplyingthemaximAfructibuscognoscetis，itendswithademonstrationoftheimpotenceandemptinessofpoliticaleconomybythelistofhumancalamitiesforwhichitmakesitresponsible。
Butifpoliticaleconomyisfalse，jurisprudence，whichinallcountriesisthescienceoflawandcustom，isfalsealso；since，foundedonthedistinctionofthineandmine，itsupposesthelegitimacyofthefactsdescribedandclassifiedbypoliticaleconomy。Thetheoriesofpublicandinternationallaw，withallthevarietiesofrepresentativegovernment，arealsofalse，sincetheyrestontheprincipleofindividualappropriationandtheabsolutesovereigntyofwills。
Alltheseconsequencessocialismaccepts。Toit，politicaleconomy，regardedbymanyasthephysiologyofwealth，isbuttheorganizationofrobberyandpoverty；justasjurisprudence，honoredbylegistswiththenameofwrittenreason，is，initseyes，butacompilationoftherubricsoflegalandofficialspoliation，——inaword，ofproperty。Consideredintheirrelations，thesetwopretendedsciences，politicaleconomyandlaw，form，intheopinionofsocialism，thecompletetheoryofiniquityanddiscord。Passingthenfromnegationtoaffirmation，socialismopposestheprincipleofpropertywiththatofassociation，andmakesvigorouseffortstoreconstructsocialeconomyfromtoptobottom；thatis，toestablishanewcode，anewpoliticalsystem，withinstitutionsandmoralsdiametricallyopposedtotheancientforms。
Thusthelineofdemarcationbetweensocialismandpoliticaleconomyisfixed，andthehostilityflagrant。
Politicaleconomytendstowardtheglorificationofselfishness；socialismfavorstheexaltationofcommunism。
Theeconomists，savingafewviolationsoftheirprinciples，forwhichtheydeemittheirdutytoblamegovernments，areoptimistswithregardtoaccomplishedfacts；thesocialists，withregardtofactstobeaccomplished。
Thefirstaffirmthatthatwhichoughttobeis；thesecond，thatthatwhichoughttobeisnot。Consequently，whilethefirstaredefendersofreligion，authority，andtheotherprinciplescontemporarywith，andconservativeof，property，——althoughtheircriticism，basedsolelyonreason，dealsfrequentblowsattheirownprejudices，——thesecondrejectauthorityandfaith，andappealexclusivelytoscience，——althoughacertainreligiosity，utterlyilliberal，andanunscientificdisdainforfacts，arealwaysthemostobviouscharacteristicsoftheirdoctrines。
Fortherest，neitherpartyeverceasestoaccusetheotherofincapacityandsterility。
Thesocialistsasktheiropponentstoaccountfortheinequalityofconditions，forthosecommercialdebaucheriesinwhichmonopolyandcompetition，inmonstrousunion，perpetuallygivebirthtoluxuryandmisery；theyreproacheconomictheories，alwaysmodeledafterthepast，withleavingthefuturehopeless；inshort，theypointtotheregimeofpropertyasahorriblehallucination，againstwhichhumanityhasprotestedandstruggledforfourthousandyears。
Theeconomists，ontheirside，defysocialiststoproduceasysteminwhichproperty，competition，andpoliticalorganizationcanbedispensedwith；theyprove，withdocumentsinhand，thatallreformatoryprojectshaveeverbeennothingbutrhapsodiesoffragmentsborrowedfromtheverysystemthatsocialismsneersat，——plagiarisms，inaword，ofpoliticaleconomy，outsideofwhichsocialismisincapableofconceivingandformulatinganidea。
Everydayseestheproofsinthisgravesuitaccumulating，andthequestionbecomingconfused。
Whilesocietyhastraveledandstumbled，sufferedandthrived，inpursuingtheeconomicroutine，thesocialists，sincePythagoras，Orpheus，andtheunfathomableHermes，havelaboredtoestablishtheirdogmainoppositiontopoliticaleconomy。Afewattemptsatassociationinaccordancewiththeirviewshaveevenbeenmadehereandthere：butasyettheseexceptionalundertakings，lostintheoceanofproperty，havebeenwithoutresult；
and，asifdestinyhadresolvedtoexhausttheeconomichypothesisbeforeattackingthesocialisticutopia，thereformatorypartyisobligedtocontentitselfwithpocketingthesarcasmsofitsadversarieswhilewaitingforitsownturntocome。
This，then，isthestateofthecause：socialismincessantlydenouncesthecrimesofcivilization，verifiesdailythepowerlessnessofpoliticaleconomytosatisfytheharmonicattractionsofman，andpresentspetitionafterpetition；politicaleconomyfillsitsbriefwithsocialisticsystems，allofwhich，oneafteranother，passawayanddie，despisedbycommonsense。Thepersistenceofevilnourishesthecomplaintoftheone，whiletheconstantsuccessionofreformatorychecksfeedsthemaliciousironyoftheother。Whenwilljudgmentbegiven？Thetribunalisdeserted；meanwhile，politicaleconomyimprovesitsopportunities，and，withoutfurnishingbail，continuestolorditovertheworld；possideoquiapossideo。
Ifwedescendfromthesphereofideastotherealitiesoftheworld，theantagonismwillappearstillmoregraveandthreatening。
When，intheserecentyears，socialism，instigatedbyprolongedconvulsions，madeitsfantasticappearanceinourmidst，menwhomallcontroversyhadfounduntilthenindifferentandlukewarmwentbackinfrighttomonarchicalandreligiousideas；democracy，whichwaschargedwithbeingdevelopedatlasttoitsultimate，wascursedanddrivenback。Thisaccusationoftheconservativesagainstthedemocratswasalibel。Democracyisbynatureashostiletothesocialisticideaasincapableoffillingtheplaceofroyalty，againstwhichitisitsdestinyendlesslytoconspire。Thissoonbecameevident，andwearewitnessesofitdailyintheprofessionsofChristianandproprietaryfaithbydemocraticpublicists，whoseabandonmentbythepeoplebeganatthatmoment。
Ontheotherhand，philosophyprovesnolessdistinctfromsocialism，nolesshostiletoit，thanpoliticsandreligion。
Forjustasinpoliticstheprincipleofdemocracyisthesovereigntyofnumbers，andthatofmonarchythesovereigntyoftheprince；justaslikewiseinaffairsofconsciencereligionisnothingbutsubmissiontoamysticalbeing，calledGod，andtothepriestswhorepresenthim；justasfinallyintheeconomicworldproperty——thatis，exclusivecontrolbytheindividualoftheinstrumentsoflabor——isthepointofdepartureofeverytheory，——sophilosophy，inbasingitselfupontheaprioriassumptionsofreason，isinevitablyledtoattributetothemealonethegenerationandautocracyofideas，andtodenythemetaphysicalvalueofexperience；
thatis，universallytosubstitute，fortheobjectivelaw，absolutism，despotism。
Now，adoctrinewhich，springingupsuddenlyintheheartofsociety，withoutantecedentsandwithoutancestors，rejectedfromeverydepartmentofconscienceandsocietythearbitraryprinciple，inordertosubstituteassoletruththerelationoffacts；whichbrokewithtradition，andconsentedtomakeuseofthepastonlyasapointfromwhichtolaunchforthintothefuture，——suchadoctrinecouldnotfailtostirupagainstittheestablishedAUTHORITIES；andwecanseetodayhow，inspiteoftheirinternaldiscords，thesaidAUTHORITIES，whicharebutone，combinetofightthemonsterthatisreadytoswallowthem。
Totheworkingmenwhocomplainoftheinsufficiencyofwagesandtheuncertaintyoflabor，politicaleconomyopposesthelibertyofcommerce；
tothecitizenswhoareseekingfortheconditionsoflibertyandorder，theideologistsrespondwithrepresentativesystems；tothetendersoulswho，havinglosttheirancientfaith，askthereasonandendoftheirexistence，religionproposestheunfathomablesecretsofProvidence，andphilosophyholdsdoubtinreserve。Subterfugesalways；completeideas，inwhichheartandmindfindrest，never！Socialismcriesthatitistimetosetsailforthemainland，andtoenterport：but，saytheantisocialists，thereisnoport；humanitysailsonwardinGod”scare，underthecommandofpriests，philosophers，orators，economists，andourcircumnavigationiseternal。
Thussocietyfindsitself，atitsorigin，dividedintotwogreatparties：
theonetraditionalandessentiallyhierarchical，which，accordingtotheobjectitisconsidering，callsitselfbyturnsroyaltyordemocracy，philosophyorreligion，inshort，property；theothersocialism，which，comingtolifeateverycrisisofcivilization，proclaimsitselfpreeminentlyanarchicalandatheistic；thatis，rebelliousagainstallauthority，humananddivine。
Now，moderncivilizationhasdemonstratedthatinaconflictofthisnaturethetruthisfound，notintheexclusionofoneoftheopposites，butwhollyandsolelyinthereconciliationofthetwo；itis，Isay，afactofsciencethateveryantagonism，whetherinNatureorinideas，isresolvableinamoregeneralfactorinacomplexformula，whichharmonizestheopposingfactorsbyabsorbingthem，sotospeak，ineachother。Canwenot，then，menofcommonsense，whileawaitingthesolutionwhichthefuturewillundoubtedlybringforth，prepareourselvesforthisgreattransitionbyananalysisofthestrugglingpowers，aswellastheirpositiveandnegativequalities？Suchawork，performedwithaccuracyandconscientiousness，eventhoughitshouldnotleadusdirectlytothesolution，wouldhaveatleasttheinestimableadvantageofrevealingtoustheconditionsoftheproblem，andtherebyputtingusonourguardagainsteveryformofutopia。
Whatisthere，then，inpoliticaleconomythatisnecessaryandtrue；
whitherdoesittend；whatareitspowers；whatareitswishes？ItisthiswhichIproposetodetermineinthiswork。Whatisthevalueofsocialism？
Thesameinvestigationwillanswerthisquestionalso。
Forsince，afterall，socialismandpoliticaleconomypursuethesameend，——namely，liberty，order，andwell-beingamongmen，——itisevidentthattheconditionstobefulfilled——inotherwords，thedifficultiestobeovercome——toattainthisend，arealsothesameforboth，andthatitremainsonlytoexaminethemethodsattemptedorproposedbyeitherparty。Butsince，moreover，ithasbeengiventhusfartopoliticaleconomyalonetotranslateitsideasintoacts，whilesocialismhasscarcelydonemorethanindulgeinperpetualsatire，itisnolessclearthat，injudgingtheworksofeconomyaccordingtotheirmerit，weatthesametimeshallreducetoitsjustvaluetheinvectiveofthesocialists：sothatourcriticism，thoughapparentlyspecial，willleadtoabsoluteanddefinitiveconclusions。
Thisitisnecessarytomakeclearerbyafewexamples，beforeenteringfullyupontheexaminationofpoliticaleconomy。
2——Inadequacyoftheoriesandcriticisms。
Wewillrecordfirstanimportantobservation：thecontendingpartiesagreeinacknowledgingacommonauthority，whosesupporteachclaims，-SCIENCE。
Plato，autopian，organizedhisidealrepublicinthenameofscience，which，throughmodestyandeuphemism，hecalledphilosophy。Aristotle，apracticalman，refutedthePlatonicutopiainthenameofthesamephilosophy。
ThusthesocialwarhascontinuedsincePlatoandAristotle。Themodernsocialistsreferallthingstoscienceoneandindivisible，butwithoutpowertoagreeeitherastoitscontent，itslimits，oritsmethod；theeconomists，ontheirside，affirmthatsocialscienceinnowisediffersfrompoliticaleconomy。
Itisourfirstbusiness，then，toascertainwhatascienceofsocietymustbe。
Science，ingeneral，isthelogicallyarrangedandsystematicknowledgeofthatwhichIS。
Applyingthisideatosociety，wewillsay：Socialscienceisthelogicallyarrangedandsystematicknowledge，notofthatwhichsocietyhasbeen，norofthatwhichitwillbe，butofthatwhichitISinitswholelife；
thatis，inthesumtotalofitssuccessivemanifestations：fortherealonecanithavereasonandsystem。Socialsciencemustincludehumanorder，notaloneinsuchorsuchaperiodofduration，norinafewofitselements；
butinallitsprinciplesandinthetotalityofitsexistence：asifsocialevolution，spreadthroughouttimeandspace，shouldfinditselfsuddenlygatheredandfixedinapicturewhich，exhibitingtheseriesoftheagesandthesequenceofphenomena，revealedtheirconnectionandunity。Suchmustbethescienceofeverylivingandprogressivereality；suchsocialscienceindisputablyis。
Itmaybe，then，thatpoliticaleconomy，inspiteofitsindividualistictendencyanditsexclusiveaffirmations，isaconstituentpartofsocialscience，inwhichthephenomenathatitdescribesarelikethestarting-
pointsofavasttriangulationandtheelementsofanorganicandcomplexwhole。Fromthispointofview，theprogressofhumanity，proceedingfromthesimpletothecomplex，wouldbeentirelyinharmonywiththeprogressofscience；andtheconflictingandsooftendesolatingfacts，whicharetodaythebasisandobjectofpoliticaleconomy，wouldhavetobeconsideredbyusassomanyspecialhypotheses，successivelyrealizedbyhumanityinviewofasuperiorhypothesis，whoserealizationwouldsolvealldifficulties，andsatisfysocialismwithoutdestroyingpoliticaleconomy。For，asIsaidinmyintroduction，innocasecanweadmitthathumanity，howeveritexpressesitself，ismistaken。
Letusnowmakethisclearerbyfacts。
Thequestionnowmostdisputedisunquestionablythatoftheorganizationoflabor。
AsJohntheBaptistpreachedinthedesert，Repentyesothesocialistsgoaboutproclaimingeverywherethisnoveltyoldastheworld，Organizelabor，thoughneverabletotellwhat，intheiropinion，thisorganizationshouldbe。Howeverthatmaybe，theeconomistshaveseenthatthissocialisticclamorwasdamagingtheirtheories：itwas，indeed，arebuketothemforignoringthatwhichtheyoughtfirsttorecognize，——labor。Theyhavereplied，therefore，totheattackoftheiradversaries，firstbymaintainingthatlaborisorganized，thatthereisnootherorganizationoflaborthanlibertytoproduceandexchange，eitheronone”sownpersonalaccount，orinassociationwithothers，——inwhichcasethecoursetobepursuedhasbeenprescribedbythecivilandcommercialcodes。Then，asthisargumentservedonlytomakethemthelaughing-stockoftheirantagonists，theyassumedtheoffensive；and，showingthatthesocialistsunderstoodnothingatallthemselvesofthisorganizationthattheyheldupasascarecrow，theyendedbysayingthatitwasbutanewsocialisticchimera，awordwithoutsense，——anabsurdity。Thelatestwritingsoftheeconomistsarefullofthesepitilessconclusions。
Nevertheless，itiscertainthatthephraseorganizationoflaborcontainsasclearandrationalameaningasthesethatfollow：organizationoftheworkshop，organizationofthearmy，organizationofpolice，organizationofcharity，organizationofwar。Inthisrespect，theargumentoftheeconomistsisdeplorablyirrational。Nolesscertainisitthattheorganizationoflaborcannotbeautopiaandchimera；foratthemomentthatlabor，thesupremeconditionofcivilization，beginstoexist，itfollowsthatitisalreadysubmittedtoanorganization，suchasitis，whichsatisfiestheeconomists，butwhichthesocialiststhinkdetestable。
Thereremains，then，relativelytotheproposaltoorganizelaborformulatedbysocialism，thisobjection，——thatlaborisorganized。Now，thisisutterlyuntenable，sinceitisnotoriousthatinlabor，supply，demand，division，quantity，proportion，price，andsecurity，nothing，absolutelynothingisregulated；onthecontrary，everythingisgivenuptothecapricesoffree-will；thatis，tochance。
Asforus，guidedbytheideathatwehaveformedofsocialscience，weshallaffirm，againstthesocialistsandagainsttheeconomists，notthatlabormustheorganized，northatitisorganizedbutthatitisbeingorganized。
Labor，wesay，isbeingorganized：thatis，theprocessoforganizationhasbeengoingonfromthebeginningoftheworld，andwillcontinuetilltheend。Politicaleconomyteachesustheprimaryelementsofthisorganization；
butsocialismisrightinassertingthat，initspresentform，theorganizationisinadequateandtransitory；andthewholemissionofscienceiscontinuallytoascertain，inviewoftheresultsobtainedandthephenomenaincourseofdevelopment，whatinnovationscanbeimmediatelyeffected。
Socialismandpoliticaleconomy，then，whilewagingaburlesquewar，pursueinrealitythesameidea，——theorganizationoflabor。
Butbothareguiltyofdisloyaltytoscienceandofmutualcalumny，whenontheonehandpoliticaleconomy，mistakingforscienceitsscrapsoftheory，deniesthepossibilityoffurtherprogress；andwhensocialism，abandoningtradition，aimsatreestablishingsocietyonundiscoverablebases。
Thussocialismisnothingbutaprofoundcriticismandcontinualdevelopmentofpoliticaleconomy；and，toapplyherethecelebratedaphorismoftheschool，Nihilestinintellectu，quodnonpriusfueritinsensu，thereisnothinginthesocialistichypotheseswhichisnotduplicatedineconomicpractice。Ontheotherhand，politicaleconomyisbutanimpertinentrhapsody，solongasitaffirmsasabsolutelyvalidthefactscollectedbyAdamSmithandJ。B。Say。
Anotherquestion，nolessdisputedthantheprecedingone，isthatofusury，orlendingatinterest。
Usury，orinotherwordsthepriceofuse，istheemolument，ofwhatevernature，whichtheproprietorderivesfromtheloanofhisproperty。Quidquidsortiaccrescitusuraest，saythetheologians。Usury，thefoundationofcredit，wasoneofthefirstofthemeanswhichsocialspontaneityemployedinitsworkoforganization，andwhoseanalysisdisclosestheprofoundlawsofcivilization。TheancientphilosophersandtheFathersoftheChurch，whomustberegardedhereastherepresentativesofsocialismintheearlycenturiesoftheChristianera，byasingularfallacy，——whicharosehoweverfromthepaucityofeconomicknowledgeintheirday，——allowedfarm-rentandcondemnedinterestonmoney，because，astheybelieved，moneywasunproductive。
Theydistinguishedconsequentlybetweentheloanofthingswhichareconsumedbyuse——amongwhichtheyincludedmoney——andtheloanofthingswhich，withoutbeingconsumed，yieldaproducttotheuser。
Theeconomistshadnodifficultyinshowing，bygeneralizingtheideaofrent，thatintheeconomyofsocietytheactionofcapital，oritsproductivity，wasthesamewhetheritwasconsumedinwagesorretainedthecharacterofaninstrument；that，consequently，itwasnecessaryeithertoprohibittherentoflandortoallowinterestonmoney，sincebothwerebythesametitlepaymentforprivilege，indemnityforloan。Itrequiredmorethanfifteencenturiestogetthisideaaccepted，andtoreassuretheconsciencesthathadbeenterrifiedbytheanathemaspronouncedbyCatholicismagainstusury。Butfinallytheweightofevidenceandthegeneraldesirefavoredtheusurers：theywonthebattleagainstsocialism；andfromthislegitimationofusurysocietygainedsomeimmenseandunquestionableadvantages。Underthesecircumstancessocialism，whichhadtriedtogeneralizethelawenactedbyMosesfortheIsraelitesalone，Nonfoeneraberisproximotuo，sedalieno，wasbeatenbyanideawhichithadacceptedfromtheeconomicroutine，——namely，farm-rent，——elevatedintothetheoryoftheproductivityofcapital。
Buttheeconomistsintheirturnwerelessfortunate，whentheywereafterwardscalledupontojustifyfarm-rentinitself，andtoestablishthistheoryoftheproductofcapital。Itmaybesaidthat，onthispoint，theyhavelostalltheadvantagetheyhadatfirstgainedagainstsocialism。
Undoubtedly——andIamthefirsttorecognizeit——therentofland，likethatofmoneyandallpersonalandrealproperty，isaspontaneousanduniversalfact，whichhasitssourceinthedepthsofournature，andwhichsoonbecomes，byitsnaturaldevelopment，oneofthemostpotentmeansoforganization。Ishallproveeventhatinterestoncapitalisbutthematerializationoftheapllorism，Alllaborshouldleaveanexcess。
Butinthefaceofthistheory，orratherthisfiction，oftheproductivityofcapital，arisesanotherthesisnolesscertain，whichintheselatterdayshasstrucktheablesteconomists：itisthatallvalueisbornoflabor，andiscomposedessentiallyofwages；inotherwords，thatnowealthhasitsorigininprivilege，oracquiresanyvalueexceptthroughwork；
andthat，consequently，laboraloneisthesourceofrevenueamongmen。
How，then，reconcilethetheoryoffarm-rentorproductivityofcapital——atheoryconfirmedbyuniversalcustom，whichconservativepoliticaleconomyisforcedtoacceptbutcannotjustify——withthisothertheorywhichshowsthatvalueisnormallycomposedofwages，andwhichinevitablyends，asweshalldemonstrate，inanequalityinsocietybetweennetproductandrawproduct？
Thesocialistshavenotwastedtheopportunity。Startingwiththeprinciplethatlaboristhesourceofallincome，theybegantocalltheholdersofcapitaltoaccountfortheirfarm-rentsandemoluments；and，astheeconomistswonthefirstvictorybygeneralizingunderacommonexpressionfarm-rentandusury，sothesocialistshavetakentheirrevengebycausingtheseignorialrightsofcapitaltovanishbeforethestillmoregeneralprincipleoflabor。Propertyhasbeendemolishedfromtoptobottom：theeconomistscouldonlykeepsilent；but，powerlesstoarrestitselfinthisnewdescent，socialismhasslippedcleartothefarthestboundariesofcommunisticutopia，and，forwantofapracticalsolution，societyisreducedtoapositionwhereitcanneitherjustifyitstradition，norcommititselftoexperimentsinwhichtheleastmistakewoulddriveitbackwardseveralthousandyears。
Insuchasituationwhatisthemandateofscience？
Certainlynottohaltinanarbitrary，inconceivable，andimpossiblejustemilieu；itistogeneralizefurther，anddiscoverathirdprinciple，afact，asuperiorlaw，whichshallexplainthefictionofcapitalandthemythofproperty，andreconcilethemwiththetheorywhichmakeslabortheoriginofallwealth。Thisiswhatsocialism，ifitwishestoproceedlogically，mustundertake。Infact，thetheoryoftherealproductivityoflabor，andthatofthefictitiousproductivityofcapital，arebothessentiallyeconomical：socialismhasendeavoredonlytoshowthecontradictionbetweenthem，withoutregardtoexperienceorlogic；foritappearstobeasdestituteoftheoneasoftheother。Now，inlaw，thelitigantwhoacceptstheauthorityofatitleinoneparticularmustacceptitinall；
itisnotallowabletodividethedocumentsandproofs。Hadsocialismtherighttodeclinetheauthorityofpoliticaleconomyinrelationtousury，whenitappealedforsupporttothissameauthorityinrelationtotheanalysisofvalue？Bynomeans。Allthatsocialismcoulddemandinsuchacasewas，eitherthatpoliticaleconomyshouldbedirectedtoreconcileitstheories，orthatitmightbeitselfintrustedwiththisdifficulttask。
Themorecloselyweexaminethesesolemndiscussions，themoreclearlyweseethatthewholetroubleisduetothefactthatoneofthepartiesdoesnotwishtosee，whiletheotherrefusestoadvance。
Itisaprincipleofourlawthatnoonecanbedeprivedofhispropertyexceptforthesakeofgeneralutility，andinconsiderationofafairindemnitypayableinadvance。
Thisprincipleiseminentlyaneconomicone；for，ontheonehand，itassumestherightofeminentdomainofthecitizenexpropriated，whoseconsent，accordingtothedemocraticspiritofthesocialcompact，isnecessarilypresupposed。Ontheotherhand，theindemnity，orthepriceofthearticletaken，isfixed，notbytheintrinsicvalueofthearticle，butbythegenerallawofcommerce，——supplyanddemand；inaword，byopinion。Expropriationinthenameofsocietymaybelikenedtoacontractofconvenience，agreedtobyeachwithall；notonlythenmustthepricebepaid，buttheconveniencealsomustbepaidfor：anditisthus，inreality，thattheindemnityisestimated。IftheRomanlegistshadseenthisanalogy，theyundoubtedlywouldhavehesitatedlessoverthequestionofexpropriationforthesakeofpublicutility。
Such，then，isthesanctionofthesocialrightofexpropriation：indemnity。
Now，practically，notonlyistheprincipleofindemnitynotappliedinallcaseswhereitoughttobe，butitisimpossiblethatitshouldbesoapplied。Thus，thelawwhichestablishedrailwaysprovidedindemnityforthelandstobeoccupiedbytherails；itdidnothingforthemultitudeofindustriesdependentuponthepreviousmethodofconveyance，whoselossesfarexceededthevalueofthelandswhoseownersreceivedcompensation。
Similarly，whenthequestionofindemnifyingthemanufacturersofbeet-rootsugarwasunderconsideration，itoccurredtonoonethattheStateoughttoindemnifyalsothelargenumberoflaborersandemployeeswhoearnedtheirlivelihoodinthebeet-rootindustry，andwhowere，perhaps，tobereducedtowant。Nevertheless，itiscertain，accordingtotheideaofcapitalandthetheoryofproduction，thatasthepossessorofland，whosemeansoflaboristakenfromhimbytherailroad，hasarighttobeindemnified，soalsothemanufacturer，whosecapitalisrenderedunproductivebythesamerailroad，isentitledtoindemnification。Why，then，ishenotindemnified？
Alas！becausetoindemnifyhimisimpossible。Withsuchasystemofjusticeandimpartialitysocietywouldbe，asageneralthing，unabletoact，andwouldreturntothefixednessofRomanjustice。Theremustbevictims。
Theprincipleofindemnityisconsequentlyabandoned；tooneormoreclassesofcitizenstheStateisinevitablybankrupt。
Atthispointthesocialistsappear。Theychargethatthesoleobjectofpoliticaleconomyistosacrificetheinterestsofthemassesandcreateprivileges；then，findinginthelawofexpropriationtherudimentofanagrarianlaw，theysuddenlyadvocateuniversalexpropriation；thatis，productionandconsumptionincommon。
Butheresocialismrelapsesfromcriticismintoutopia，anditsincapacitybecomesfreshlyapparentinitscontradictions。Iftheprincipleofexpropriationforthesakeofpublicutility，carriedtoitslogicalconclusion，leadstoacompletereorganizationofsociety，beforecommencingtheworkthecharacterofthisneworganizationmustbeunderstood；now，socialism，Irepeat，hasnosciencesaveafewbitsofphysiologyandpoliticaleconomy。
Further，itisnecessaryinaccordancewiththeprincipleofindemnity，ifnottocompensatecitizens，atleasttoguaranteetothemthevalueswhichtheypartwith；itisnecessary，inshort，toinsurethemagainstloss。Now，outsideofthepublicfortune，themanagementofwhichitdemands，wherewillsocialismfindsecurityforthissamefortune？
Itisimpossible，insoundandhonestlogic，toescapethiscircle。
Consequentlythecommunists，moreopenintheirdealingsthancertainothersectariansofflowingandpacificideas，decidethedifficulty；andpromise，thepoweronceintheirhands，toexpropriateallandindemnifyandguaranteenone。Atbottom，thatwouldbeneitherunjustnordisloyal。Unfortunately，toburnisnottoreply，astheinterestingDesmoulinssaidtoRobespierre；andsuchadiscussionendsalwaysinfireandtheguillotine。Here，aseverywhere，tworights，equallysacred，standinthepresenceofeachother，therightofthecitizenandtherightoftheState；itisenoughtosaythatthereisasuperiorformulawhichreconcilesthesocialisticutopiasandthemutilatedtheoriesofpoliticaleconomy，andthattheproblemistodiscoverit。Inthisemergencywhatarethecontendingpartiesdoing？Nothing。Wemightsayratherthattheyraisequestionsonlytogetanopportunitytoredressinjuries。WhatdoIsay？Thequestionsarenotevenunderstoodbythem；and，whilethepublicisconsideringthesublimeproblemsofsocietyandhumandestiny，theprofessorsofsocialscience，orthodoxandheretics，donotagreeonprinciples。Witnessthequestionwhichoccasionedtheseinquiries，andwhichitsauthorscertainlyunderstandnobetterthanitsdisparagers，——therelationofprofitsandwages。
What！anAcademyofeconomistshasofferedforcompetitionaquestionthetermsofwhichitdoesnotunderstand！How，then，couldithaveconceivedtheidea？
Well！Iknowthatmystatementisastonishingandincredible；butitistrue。Likethetheologians，whoanswermetaphysicalproblemsonlybymythsandallegories，whichalwaysreproducetheproblemsbutneversolvethem，theeconomistsreplytothequestionswhichtheyaskonlybyrelatinghowtheywereledtoaskthem：shouldtheyconceivethatitwaspossibletogofurther，theywouldceasetobeeconomists。
Forexample，whatisprofit？Thatwhichremainsforthemanagerafterhehaspaidalltheexpenses。Now，theexpensesconsistofthelaborperformedandthematerialsconsumed；or，infine，wages。What，then，isthewagesofaworkingman？Theleastthatcanbegivenhim；thatis，wedonotknow。
Whatshouldbethepriceofthemerchandiseputuponthemarketbythemanager？Thehighestthathecanobtain；thatis，again，wedonotknow。
Politicaleconomyprohibitsthesuppositionthatthepricesofmerchandiseandlaborcanbefixed，althoughitadmitsthattheycanbeestimated；
andthatforthereason，saytheeconomists，thatestimationisessentiallyanarbitraryoperation，whichnevercanleadtosureandcertainconclusions。
How，then，shallwefindtherelationbetweentwounknownswhich，accordingtopoliticaleconomy，cannotbedetermined？Thuspoliticaleconomyproposesinsolvableproblems；andyetweshallsoonseethatitmustproposethem，andthatourcenturymustsolvethem。ThatiswhyIsaidthattheAcademyofMoralSciences，inofferingforcompetitionthequestionoftherelationofprofitsandwages，spokeunconsciously，spokeprophetically。
Butitwillbesaid，Isitnottruethat，iflaborisingreatdemandandlaborersarescarce，wageswillrise，whileprofitsontheotherhandwilldecrease；thatif，inthepressofcompetition，thereisanexcessofproduction，therewillbeastoppageandforcedsales，consequentlynoprofitforthemanagerandadangerofidlenessforthelaborer；thatthenthelatterwillofferhislaboratareducedprice；that，ifamachineisinvented，itwillfirstextinguishthefiresofitsrivals；then，amonopolyestablished，andthelaborermadedependentontheemployer，profitsandwageswillbeinverselyproportional？Cannotallthesecauses，andothersbesides，bestudied，ascertained，counterbalanced，etc。？
Oh，monographs，histories！——wehavebeensaturatedwiththemsincethedaysofAdamSmithandJ。B。Say，andtheyarescarcelymorethanvariationsoftheseauthors”words。
Butitisnotthusthatthequestionshouldbeunderstood，althoughtheAcademyhasgivenitnoothermeaning。Therelationofprofitsendwagesshouldbeconsideredinanabsolutesense，andnotfromtheinconclusivepointofviewoftheaccidentsofcommerceandthedivisionofinterests：
twothingswhichmustultimatelyreceivetheirinterpretation。Letmeexplainmyself。
Consideringproducerandconsumerasasingleindividual，whoserecompenseisnaturallyequaltohisproduct；thendividingthisproductintotwoparts，onewhichrewardstheproducerforhisoutlay，anotherwhichrepresentshisprofit，accordingtotheaxiomthatalllaborshouldleaveanexcess，-wehavetodeterminetherelationofoneofthesepartstotheother。
Thisdone，itwillbeeasytodeducetheratioofthefortunesofthesetwoclassesofmen，employersandwage-laborers，aswellasaccountforallcommercialoscillations。Thiswillbeaseriesofcorollariestoaddtothedemonstration。
Now，thatsucharelationmayexistandbeestimated，theremustnecessarilybealaw，internalorexternal，whichgovernswagesandprices；andsince，inthepresentstateofthings，wagesandpricesvaryandoscillatecontinually，wemustaskwhatarethegeneralfacts，thecauses，whichmakevaluevaryandoscillate，andwithinwhatlimitsthisoscillationtakesplace。
Butthisveryquestioniscontrarytotheacceptedprinciples；forwhoeversaysoscillationnecessarilysupposesameandirectiontowardwhichvalue”scentreofgravitycontinuallytends；andwhentheAcademyasksthatwedeterminetheoscillationsofprofitandwages，itaskstherebythatwedeterminevalue。NowthatispreciselywhatthegentlemenoftheAcademydeny：theyareunwillingtoadmitthat，ifvalueisvariable，itisforthatveryreasondeterminable；thatvariabilityisthesignandconditionofdeterminability。Theypretendthatvalue，evervarying，canneverbedetermined。Thisislikemaintainingthat，giventhenumberofoscillationsofapendulumpersecond，theiramplitude，andthelatitudeandelevationofthespotwheretheexperimentisperformed，thelengthofthependulumcannotbedeterminedbecausethependulumisinmotion。Suchispoliticaleconomy”sfirstarticleoffaith。
Asforsocialism，itdoesnotappeartohaveunderstoodthequestion，ortobeconcernedaboutit。Amongitsmanyorgans，somesimplyandmerelyputasidetheproblembysubstitutingdivisionfordistribution，——thatis，bybanishingnumberandmeasurefromthesocialorganism：othersrelievethemselvesoftheembarrassmentbyapplyinguniversalsuffragetothewagesquestion。Itisneedlesstosaythattheseplatitudesfinddupesbythousandsandhundredsofthousands。
ThecondemnationofpoliticaleconomyhasbeenformulatedbyMalthusinthisfamouspassage：——
Amanwhoisbornintoaworldalreadyoccupied，hisfamilyunabletosupporthim，andsocietynotrequiringhislabor，——suchaman，Isay，hasnottheleastrighttoclaimanynourishmentwhatever：heisreallyonetoomanyontheearth。AtthegreatbanquetofNaturethereisnoplatelaidforhim。Naturecommandshimtotakehimselfaway，andshewillnotbeslowtoputherorderintoexecution。1*
Thisthenisthenecessary，thefatal，conclusionofpoliticaleconomy，——aconclusionwhichIshalldemonstratebyevidencehithertounknowninthisfieldofinquiry，——Deathtohimwhodoesnotpossess！
InorderbettertograspthethoughtofMalthus，letustranslateitintophilosophicalpropositionsbystrippingitofitsrhetoricalgloss：——
“Individualliberty，andproperty，whichisitsexpression，areeconomicaldata；equalityandsolidarityarenot。
“Underthissystem，eachonebyhimself，eachoneforhimself：labor，likeallmerchandise，issubjecttofluctuation：hencetherisksoftheproletariat。
“Whoeverhasneitherincomenorwageshasnorighttodemandanythingofothers：hismisfortunefallsonhisownhead；inthegameoffortune，luckhasbeenagainsthim。”
Fromthepointofviewofpoliticaleconomythesepropositionsareirrefutable；
andMalthus，whohasformulatedthemwithsuchalarmingexactness，issecureagainstallreproach。Fromthepointofviewoftheconditionsofsocialscience，thesesamepropositionsareradicallyfalse，andevencontradictory。
TheerrorofMalthus，orratherofpoliticaleconomy，doesnotconsistinsayingthatamanwhohasnothingtoeatmustdie；orinmaintainingthat，underthesystemofindividualappropriation，thereisnocourseforhimwhohasneitherlabornorincomebuttowithdrawfromlifebysuicide，unlesshepreferstobedrivenfromitbystarvation：suchis，ontheonehand，thelawofourexistence；suchis，ontheother，theconsequenceofproperty；andM。RossihastakenaltogethertoomuchtroubletojustifythegoodsenseofMalthusonthispoint。Isuspect，indeed，thatM。Rossi，inmakingsolengthyandlovinganapologyforMalthus，intendedtorecommendpoliticaleconomyinthesamewaythathisfellow-countrymanMachiavel，inhisbookentitled“ThePrince，“recommendeddespotismtotheadmirationoftheworld。Inpointingoutmiseryasthenecessaryconditionofindustrialandcommercialabsolutism，M。Rossiseemstosaytous：Thereisyourlaw，yourjustice，yourpoliticaleconomy；thereisproperty。
ButGallicsimplicitydoesnotunderstandartifice；anditwouldhavebeenbettertohavesaidtoFrance，inherimmaculatetongue：TheerrorofMalthus，theradicalviceofpoliticaleconomy，consists，ingeneralterms，inaffirmingasadefinitivestateatransitorycondition，——namely，thedivisionofsocietyintopatriciansandproletaires；and，particularly，insayingthatinanorganized，andconsequentlysolidaire，society，theremaybesomewhopossess，labor，andconsume，whileothershaveneitherpossession，norlabor，norbread。FinallyMalthus，orpoliticaleconomy，reasonserroneouslywhenseeinginthefacultyofindefinitereproduction——whichthehumanraceenjoysinneithergreaternorlessdegreethanallanimalandvegetablespecies——apermanentdangeroffamine；whereasitisonlynecessarytoshowthenecessity，andconsequentlytheexistence，ofalawofequilibriumbetweenpopulationandproduction。
Inshort，thetheoryofMalthus——andhereinliesthegreatmeritofthiswriter，ameritwhichnoneofhiscolleagueshasdreamedofattributingtohim——isareductioadabsurdumofallpoliticaleconomy。
Asforsocialism，thatwassummeduplongsincebyPlatoandThomasMoreinasingleword，UTOPIA，——thatis，no-place，achimera。
Nevertheless，forthehonorofthehumanmindandthatjusticemaybedonetoall，thismustbesaid：neithercouldeconomicandlegislativesciencehavehadanyotherbeginningthantheydidhave，norcansocietyremaininthisoriginalposition。
Everysciencemustfirstdefineitsdomain，produceandcollectitsmaterials：beforesystem，facts；beforetheageofart，theageoflearning。
Theeconomicscience，subjectlikeeveryothertothelawoftimeandtheconditionsofexperience，beforeseekingtoascertainhowthingsoughttotakeplaceinsociety，hadtotellushowthingsdotakeplace；andalltheseprocesseswhichtheauthorsspeakofsopompouslyintheirbooksaslaws，principles，andtheories，inspiteoftheirincoherenceandinconsistency，hadtobegatheredupwithscrupulousdiligence，anddescribedwithstrictimpartiality。Thefulfilmentofthistaskcalledformoregeniusperhaps，certainlyformoreself-sacrifice，thanwillbedemandedbythefutureprogressofthescience。
If，then，socialeconomyisevenyetratheranaspirationtowardsthefuturethanaknowledgeofreality，itmustbeadmittedthattheelementsofthisstudyareallincludedinpoliticaleconomy；andIbelievethatIexpressthegeneralsentimentinsayingthatthisopinionhasbecomethatofthevastmajorityofminds。Thepresentfindsfewdefenders，itistrue；butthedisgustwithutopiaisnolessuniversal：andeverybodyunderstandsthatthetruthliesinaformulawhichshallreconcilethesetwoterms：CONSERVATIONandMOTION。
Thus，thankstoAdamSmith，J。B。Say，Ricardo，andMalthus，aswellastheirrashopponents，themysteriesoffortune，atriaDitis，areuncovered；
thepowerofcapital，theoppressionofthelaborer，themachinationsofmonopoly，illuminedatallpoints，shunthepublicgaze。Concerningthefactsobservedanddescribedbytheeconomists，wereasonandconjecture：
abusivelaws，iniquitouscustoms，respectedsolongastheobscuritywhichsustainedtheirlifelasted，withdifficultydraggedtothedaylight，areexpiringbeneaththegeneralreprobation；itissuspectedthatthegovernmentofsocietymustbelearnednolongerfromanemptyideology，afterthefashionoftheContratsocial，but，asMontesquieuforesaw，fromtherelationofthings；andalreadyaLeftofeminentlysocialistictendencies，composedofsavants，magistrates，legists，professors，andevencapitalistsandmanufacturers，——allbornrepresentativesanddefendersofprivilege，——andofamillionofadepts，isforminginthenationaboveandoutsideofparliamentaryopinions，andseeking，byananalysisofeconomicfacts，tocapturethesecretsofthelifeofsocieties。
Letusrepresentpoliticaleconomy，then，asanimmenseplain，strewnwithmaterialspreparedforanedifice。Thelaborersawaitthesignal，fullofardor，andburningtocommencethework：butthearchitecthasdisappearedwithoutleavingtheplan。Theeconomistshavestoredtheirmemorieswithmanythings：unhappilytheyhavenottheshadowofanestimate。
Theyknowtheoriginandhistoryofeachpiece；whatitcosttomakeit；
whatwoodmakesthebestjoists，andwhatclaythebestbricks；whathasbeenexpendedintoolsandcarts；howmuchthecarpentersearned，andhowmuchthestone-cutters：theydonotknowthedestinationandtheplaceofanything。Theeconomistscannotdenythattheyhavebeforethemthefragments，scatteredpell-mell，ofachef-d”oeuvre，disjectimembrapoetae；
butithasbeenimpossibleforthemasyettorecoverthegeneraldesign，and，whenevertheyhaveattemptedanycomparisons，theyhavemetonlywithincoherence。Driventodespairatlastbytheirfruitlesscombinations，theyhaveerectedasadogmathearchitecturalincongruityofthescience，or，astheysay，theinconveniencesofitsprinciples；inaword，theyhavedeniedthescience。2*
Thusthedivisionoflabor，withoutwhichproductionwouldbealmostnothing，issubjecttoathousandinconveniences，theworstofwhichisthedemoralizationofthelaborer；machinerycauses，notonlycheapness，butobstructionofthemarketandstoppageofbusiness；competitionendsinoppression；taxation，thematerialbondofsociety，isgenerallyascourgedreadedequallywithfireandhail；creditisnecessarilyaccompaniedbybankruptcy；propertyisaswarmofabuses；commercedegeneratesintoagameofchance，inwhichitissometimesallowableeventocheat：inshort，disorderexistingeverywheretoanequalextentwithorder，andnooneknowinghowthelatteristobanishtheformer，taxisataxiendiokein，theeconomistshavedecidedthatallisforthebest，andregardeveryreformatorypropositionashostiletopoliticaleconomy。
Thesocialedifice，then，hasbeenabandoned；thecrowdhasburstintothewood-yard；columns，capitals，andplinths，wood，stone，andmetal，havebeendistributedinportionsanddrawnbylot：and，ofallthesematerialscollectedforamagnificenttemple，property，ignorantandbarbarous，hasbuilthuts。Theworkbeforeus，then，isnotonlytorecovertheplanoftheedifice，buttodislodgetheoccupants，whomaintainthattheircityissuperb，and，attheverymentionofrestoration，appearinbattle-arrayattheirgates。SuchconfusionwasnotseenofoldatBabel：happilywespeakFrench，andaremorecourageousthanthecompanionsofNimrod。
Butenoughofallegory：thehistoricalanddescriptivemethod，successfullyemployedsolongastheworkwasoneofexaminationonly，ishenceforthuseless：afterthousandsofmonographsandtables，wearenofurtheradvancedthanintheageofXenophonandHesiod。ThePhenicians，theGreeks，theItalians，laboredintheirdayaswedoinours：theyinvestedtheirmoney，paidtheirlaborers，extendedtheirdomains，madetheirexpeditionsandrecoveries，kepttheirbooks，speculated，dabbledinstocks，andruinedthemselvesaccordingtoalltherulesofeconomicart；knowingaswellasourselveshowtogainmonopoliesandfleecetheconsumerandlaborer。
Ofallthisaccountsareonlytoonumerous；and，thoughweshouldrehearseforeverourstatisticsandourfigures，weshouldalwayshavebeforeoureyesonlychaos，——chaosconstantanduniform。
Itisthought，indeed，thatfromtheeraofmythologytothepresentyear57ofourgreatrevolution，thegeneralwelfarehasimproved：Christianityhaslongbeenregardedasthechiefcauseofthisamelioration，butnowtheeconomistsclaimallthehonorfortheirownprinciples。Forafterall，theysay，whathasbeentheinfluenceofChristianityuponsociety？
Thoroughlyutopianatitsbirth，ithasbeenabletomaintainandextenditselfonlybygraduallyadoptingalltheeconomiccategories，——labor，capital，farm-rent，usury，traffic，property；inshort，byconsecratingtheRomanlaw，thehighestexpressionofpoliticaleconomy。
Christianity，astrangerinitstheologicalaspecttothetheoriesofproductionandconsumption，hasbeentoEuropeancivilizationwhatthetrades-unionsandfree-masonswerenotlongsincetoitinerantworkmen，——asortofinsurancecompanyandmutualaidsociety；inthisrespect，itowesnothingtopoliticaleconomy，andthegoodwhichithasdonecannotbeinvokedbythelatterinitsownsupport。Theeffectsofcharityandself-sacrificeareoutsideofthedomainofeconomy，whichmustbringaboutsocialhappinessthroughjusticeandtheorganizationoflabor。Fortherest，Iamreadytoadmitthebeneficialeffectsofthesystemofproperty；
butIobservethattheseeffectsareentirelybalancedbythemiserywhichitisthenatureofthissystemtoproduce；sothat，asanillustriousministerrecentlyconfessedbeforetheEnglishParliament，andasweshallsoonshow，theincreaseofmiseryinthepresentstateofsocietyisparallelandequaltotheincreaseofwealth，——whichcompletelyannulsthemeritsofpoliticaleconomy。
Thuspoliticaleconomyisjustifiedneitherbyitsmaximsnorbyitsworks；and，asforsocialism，itswholevalueconsistsinhavingestablishedthisfact。Weareforced，then，toresumetheexaminationofpoliticaleconomy，sinceitalonecontains，atleastinpart，thematerialsofsocialscience；andtoascertainwhetheritstheoriesdonotconcealsomeerror，thecorrectionofwhichwouldreconcilefactandright，revealtheorganiclawofhumanity，andgivethepositiveconceptionoforder。
NOTES：
1。ThepassagequotedmaynotbegivenintheexactwordsusedbyMalthus，ithavingreacheditspresentshapethroughthemediumofaFrenchrendering——Translator。
2。“Theprinciplewhichgovernsthelifeofnationsisnotpurescience：
itisthetotalofthecomplexdatawhichdependonthestateofenlightenment，onneedsandinterests。”Thusexpresseditself，inDecember，1844，oneoftheclearestmindsthatFrancecontained，M。LeonFaucher。Explain，ifyoucan，howamanofthisstampwasledbyhiseconomicconvictionstodeclarethatthecomplexdataofsocietyareopposedtopurescience。
chapter02
CHAPTERII。OFVALUE。
1——OppositionofvalueinUSEandvalueinEXCHANGE。
Valueisthecorner-stoneoftheeconomicedifice。Thedivineartistwhohasintrusteduswiththecontinuationofhisworkhasexplainedhimselfonthispointtonoone；butthefewindicationsgivenmayserveasabasisofconjecture。Value，infact，presentstwofaces：one，whichtheeconomistscallvalueinuse，orintrinsicvalue；another，valueinexchange，orofopinion。Theeffectswhichareproducedbyvalueunderthisdoubleaspect，andwhichareveryirregularsolongasitisnotestablished，——or，touseamorephilosophicalexpression，solongasitisnotconstituted，-arechangedtotallybythisconstitution。
Now，inwhatconsiststhecorrelationbetweenusefulvalueandvalueinexchange？Whatismeantbyconstitutedvalue，andbywhatsuddenchangeisthisconstitutioneffected？Toanswerthesequestionsistheobjectandendofpoliticaleconomy。Ibegthereadertogivehiswholeattentiontowhatistofollow，thischapterbeingtheonlyoneintheworkwhichwilltaxhispatience。Formypart，Iwillendeavortobemoreandmoresimpleandclear。
Everythingwhichcanbeofanyservicetomeisofvaluetome，andthemoreabundanttheusefulthingisthericherIam：sofarthereisnodifficulty。Milkandflesh，fruitsandgrains，wool，sugar，cotton，wine，metals，marble；infact，land，water，air，fire，andsunlight，——
are，relativelytome，valuesofuse，valuesbynatureandfunction。Ifallthethingswhichservetosustainmylifewereasabundantascertainofthemare，lightforinstance，——inotherwords，ifthequantityofeveryvaluablethingwasinexhaustible，——mywelfarewouldbeforeverassured：Ishouldnothavetolabor；Ishouldnoteventhink。Insuchastate，thingswouldalwaysbeuseful，butitwouldbenolongertruetosaythattheyAREVALUABLE；forvalue，asweshallsoonsee，indicatesanessentiallysocialrelation；anditissolelythroughexchange，revertingasitwerefromsocietytoNature，thatwehaveacquiredtheideaofutility。
Thewholedevelopmentofcivilizationoriginates，then，inthenecessitywhichthehumanraceisunderofcontinuallycausingthecreationofnewvalues；justastheevilsofsocietyareprimarilycausedbytheperpetualstrugglewhichwemaintainagainstourowninertia。Takeawayfrommanthatdesirewhichleadshimtothinkandfitshimforalifeofcontemplation，andthelordofcreationstandsonalevelwiththehighestofthebeasts。
Buthowdoesvalueinusebecomevalueinexchange？Foritshouldbenoticedthatthetwokindsofvalue，althoughcoexistinginthoughtsincetheformerbecomesapparentonlyinthepresenceofthelatter，neverthelessmaintainarelationofsuccession：exchangeablevalueisasortofreflexofusefulvalue；justasthetheologiansteachthatintheTrinitytheFather，contemplatinghimselfthroughalleternity，begetstheSon。Thisgenerationoftheideaofvaluehasnotbeennotedbytheeconomistswithsufficientcare：itisimportantthatweshouldtarryoverit。
Since，then，oftheobjectswhichIneed，averylargenumberexistinNatureonlyinmoderatequantities，orevennotatall，IamforcedtoassistintheproductionofthatwhichIlack；and，asIcannotturnmyhandtosomanythings，Iproposetoothermen，mycollaboratorsinvariousfunctions，toyieldmeaportionoftheirproductsinexchangeformine。IshallthenalwayshaveinmypossessionmoreofmyownspecialproductthanIconsume；justasmyfellowswillalwayshaveintheirpossessionmoreoftheirrespectiveproductsthantheyuse。Thistacitagreementisfulfilledbycommerce。Herewemayobservethatthelogicalsuccessionofthetwokindsofvalueisevenmoreapparentinhistorythanintheory，menhavingspentthousandsofyearsindisputingovernaturalwealththisbeingwhatiscalledprimitivecommunismbeforetheirindustryaffordedopportunityforexchange。
Now，thecapacitypossessedbyallproducts，whethernaturalortheresultoflabor，ofservingtomaintainman，iscalleddistinctivelyvalueinuse；theircapacityofpurchasingeachother，valueinexchange。Atbottomthisisthesamething，sincethesecondcaseonlyaddstothefirsttheideaofsubstitution，whichmayseemanidlesubtlety；practically，theconsequencesaresurprising，andbeneficialorfatalbyturns。
Consequently，thedistinctionestablishedinvalueisbasedonfacts，andisnotatallarbitrary：itisforman，insubmittingtothislaw，touseittoincreasehiswelfareandliberty。Labor，asanauthorM。
Walrashasbeautifullyexpressedit，isawardeclaredagainsttheparsimonyofNature；byitwealthandsocietyaresimultaneouslycreated。NotonlydoeslaborproduceincomparablymorewealththanNaturegivesus，——forinstance，ithasbeenremarkedthattheshoemakersaloneinFranceproducetentimesmorethantheminesofPeru，Brazil，andMexicocombined，——
but，laborinfinitelyextendingandmultiplyingitsrightsbythechangeswhichitmakesinnaturalvalues，itgraduallycomesaboutthatallwealth，inrunningthegauntletoflabor，fallswhollyintothehandsofhimwhocreatesit，andthatnothing，oralmostnothing，isleftforthepossessoroftheoriginalmaterial。
Such，then，isthepathofeconomicprogress：atfirst，appropriationofthelandandnaturalvalues；then，associationanddistributionthroughlaboruntilcompleteequalityisattained。Chasmsarescatteredalongourroad，theswordissuspendedoverourheads；but，toavertalldangers，wehavereason，andreasonisomnipotence。
Itresultsfromtherelationofusefulvaluetoexchangeablevaluethatif，byaccidentorfrommalice，exchangeshouldbeforbiddentoasingleproducer，oriftheutilityofhisproductshouldsuddenlycease，thoughhisstorehouseswerefull，hewouldpossessnothing。Themoresacrificeshehadmadeandthemorecouragehehaddisplayedinproducing，thegreaterwouldbehismisery。Iftheutilityoftheproduct，insteadofwhollydisappearing，shouldonlydiminish，——athingwhichmayhappeninahundredways，——
thelaborer，insteadofbeingstruckdownandruinedbyasuddencatastrophe，wouldbeimpoverishedonly；obligedtogivealargequantityofhisownvalueforasmallquantityofthevaluesofothers，hismeansofsubsistencewouldbereducedbyanamountequaltothedeficitinhissale：whichwouldleadbydegreesfromcompetencytowant。If，finally，theutilityoftheproductshouldincrease，orelseifitsproductionshouldbecomelesscostly，thebalanceofexchangewouldturntotheadvantageoftheproducer，whoseconditionwouldthusberaisedfromfatiguingmediocritytoidleopulence。
Thisphenomenonofdepreciationandenrichmentismanifestedunderathousandformsandbyathousandcombinations；itistheessenceofthepassionalandintriguinggameofcommerceandindustry。Andthisisthelottery，fulloftraps，whichtheeconomiststhinkoughttolastforever，andwhosesuppressiontheAcademyofMoralandPoliticalSciencesunwittinglydemands，when，underthenamesofprofitandwages，itasksustoreconcilevalueinuseandvalueinexchange；thatis，tofindthemethodofrenderingallusefulvaluesequallyexchangeable，and，viceversa，allexchangeablevaluesequallyuseful。
Theeconomistshaveveryclearlyshownthedoublecharacterofvalue，butwhattheyhavenotmadeequallyplainisitscontradictorynature。
Herebeginsourcriticism。
Utilityisthenecessaryconditionofexchange；buttakeawayexchange，andutilityvanishes：thesetwothingsareindissolublyconnected。Where，then，isthecontradiction？
Sinceallofusliveonlybylaborandexchange，andgrowricherasproductionandexchangeincrease，eachofusproducesasmuchusefulvalueaspossible，inordertoincreasebythatamounthisexchanges，andconsequentlyhisenjoyments。Well，thefirsteffect，theinevitableeffect，ofthemultiplicationofvaluesistoLOWERthem：themoreabundantisanarticleofmerchandise，themoreitlosesinexchangeanddepreciatescommercially。Isitnottruethatthereisacontradictionbetweenthenecessityoflaboranditsresults？
Iadjurethereader，beforerushingaheadfortheexplanation，toarresthisattentionuponthefact。
Apeasantwhohasharvestedtwentysacksofwheat，whichhewithhisfamilyproposestoconsume，deemshimselftwiceasrichasifhehadharvestedonlyten；likewiseahousewifewhohasspunfiftyyardsoflinenbelievesthatsheistwiceasrichasifshehadspunbuttwenty-five。Relativelytothehousehold，bothareright；lookedatintheirexternalrelations，theymaybeutterlymistaken。Ifthecropofwheatisdoublethroughoutthewholecountry，twentysackswillsellforlessthantenwouldhavesoldforifithadbeenbuthalfasgreat；so，undersimilarcircumstances，fiftyyardsoflinenwillbeworthlessthantwenty-five：sothatvaluedecreasesastheproductionofutilityincreases，andaproducermayarriveatpovertybycontinuallyenrichinghimself。Andthisseemsunalterable，inasmuchasthereisnowayofescapeexceptalltheproductsofindustrybecomeinfiniteinquantity，likeairandlight，whichisabsurd。Godofmyreason！JeanJacqueswouldhavesaid：itisnottheeconomistswhoareirrational；itispoliticaleconomyitselfwhichisfalsetoitsdefinitions。
Mentitaestiniquitassibi。
Intheprecedingexamplestheusefulvalueexceedstheexchangeablevalue：inothercasesitisless。Thenthesamephenomenonisproduced，butintheoppositedirection：thebalanceisinfavoroftheproducer，whiletheconsumersuffers。Thisisnotablythecaseinseasonsofscarcity，whenthehighpriceofprovisionsisalwaysmoreorlessfactitious。Therearealsoprofessionswhosewholeartconsistsingivingtoanarticleofminorusefulness，whichcouldeasilybedispensedwith，anexaggeratedvalueofopinion：such，ingeneral，aretheartsofluxury。Man，throughhisaestheticpassion，iseagerforthetriflesthepossessionofwhichwouldhighlysatisfyhisvanity，hisinnatedesireforluxury，andhismorenobleandmorerespectableloveofthebeautiful：uponthisthedealersinthisclassofarticlesspeculate。Totaxfancyandeleganceisnolessodiousorabsurdthantotaxcirculation：butsuchataxiscollectedbyafewfashionablemerchants，whomgeneralinfatuationprotects，andwhosewholemeritgenerallyconsistsinwarpingtasteandgeneratingfickleness。
Hencenoonecomplains；andallthemaledictionsofopinionarereservedforthemonopolistswho，throughgenius，succeedinraisingbyafewcentsthepriceoflinenandbread。
Itislittletohavepointedoutthisastonishingcontrastbetweenusefulvalueandexchangeablevalue，whichtheeconomistshavebeeninthehabitofregardingasverysimple：itmustbeshownthatthispretendedsimplicityconcealsaprofoundmystery，whichitisourdutytofathom。
Isummon，therefore，everyseriouseconomisttotellme，otherwisethanbytransformingorrepeatingthequestion，forwhatreasonvaluedecreasesinproportionasproductionaugments，andreciprocallywhatcausesthissamevaluetoincreaseinproportionasproductiondiminishes。Intechnicalterms，usefulvalueandexchangeablevalue，necessarytoeachother，areinverselyproportionaltoeachother；Iask，then，whyscarcity，insteadofutility，issynonymouswithdearness。For——markitwell——thepriceofmerchandiseisindependentoftheamountoflaborexpendedinproduction；
anditsgreaterorlesscostdoesnotserveatalltoexplainthevariationsinitsprice。Valueiscapricious，likeliberty：itconsidersneitherutilitynorlabor；onthecontrary，itseemsthat，intheordinarycourseofaffairs，andexceptionalderangementsaside，themostusefulobjectsarethosewhicharesoldatthelowestprice；inotherwords，thatitisjustthatthemenwhoperformthemostattractivelaborshouldbethebestrewarded，whilethosewhosetasksdemandthemostexertionarepaidtheleast。Sothat，infollowingtheprincipletoitsultimateconsequences，wereachthemostlogicalofconclusions：thatthingswhoseuseisnecessaryandquantityinfinitemustbegratuitous，whilethosewhicharewithoututilityandextremelyscarcemustbearaninestimableprice。But，tocompletetheembarrassment，theseextremesdonotoccurinpractice：ontheonehand，nohumanproductcaneverbecomeinfiniteinquantity；ontheother，therarestthingsmustbeinsomedegreeuseful，elsetheywouldnotbesusceptibleofvalue。Usefulvalueandexchangeablevalueremain，then，ininevitableattachment，althoughitistheirnaturecontinuallytotendtowardsmutualexclusion。
Ishallnotfatiguethereaderwitharefutationofthelogomachieswhichmightbeofferedinexplanationofthissubject：ofthecontradictioninherentintheideaofvaluethereisnoassignablecause，nopossibleexplanation。ThefactofwhichIspeakisoneofthosecalledprimitive，——thatis，oneofthosewhichmayservetoexplainothers，butwhichinthemselves，likethebodiescalledsimple，areinexplicable。Suchisthedualismofspiritandmatter。Spiritandmatteraretwotermseachofwhich，takenseparately，indicatesaspecialaspectofspirit，butcorrespondstonoreality。So，givenman”sneedsofagreatvarietyofproductstogetherwiththeobligationofprocuringthembyhislabor，theoppositionofusefulvaluetoexchangeablevaluenecessarilyresults；andfromthisoppositionacontradictionontheverythresholdofpoliticaleconomy。Nointelligence，nowill，divineorhuman，canpreventit。