A PLEA FOR ECONOMICS.*

New Zealand Times, Volume XXXII, Issue 4934, 15 January 1877, Page 3

A PLEA FOR ECONOMICS.*

In a recent number of the Westminster Review, there appears a very thoughtful paper, entitled "Political Economy the Safeguard of Democracy," the object of which is to show that unless some steps be taken to educate the masses in at anyrate the leading principles of political economy, the consequences of their endowment with so much political power as has been given them of late years must be very serious. Indeed the author seems to see standing out in the future of Great Britain, shadowy, indistinctly, perhaps, communism, socialism, and other dangerous revolutionary " isms," brought into existence not by physical, but by political force. Many of hia facts are overstated, many of his conclusions overdrawn, and throughout the paper no due allowance is made for what is called the "poise of mind " lof the British nation as a whole. Yet that there is ground for anxiety none .will deny. Notwithstanding increased educational facilities during the past quarter of a century, the proletariat are as much on the wrong scent now as they were when Mr. Greg wrote in 1850, and their search after the impossible is carried on with the more vigor because they, think increased political power brings it nearer to the grasp. They cannot yet realise that the accumulated labor of preceding times, capital, is not only "the best friend, but the indispensable condition and material of all profitable industry—that which supplies it with its implements and its machinery—that which enables it to wait for the realisation of its profits,'for the ripening of its crops, for the sale of its produce—which in a word gives the woilunan wages which are not yet earned, profits which are not yet made, bread which is not yet baked, harvests which are not yet reaped." The division of the soil among a class of peasant proprietors, trades unions and strikes, and class taxation, are other false scents upon which the proletariat are still running in the old country, and even in some of the colonies. For instance, in • "Victoria, armed with the huge power of manhood suffrage, they have brought into existence what is called the Liberal party—a party by whom the interest of the consumer is constantly sacrificed to that of the producer, and who seem to consider production and not consumption as the end and object of all industry and commerce—a party who seek to "burst up" the large estates, as they say, but who, if they succeeded, in their blindnes would,-'burst up" the colony by driving all capital from it, —a party who teaches the people to build hopes of more prosperous conditions, "not upon that cooperation and thrifty accumulation by which they might become capitalists, but upon the chances of ■ forcing up the prices of .'their labor upon metamorphosed political condiditions," and almost "point to an imaginary future in which property is .to be equally sharedby aIL" . In New Zealand we have as yet no such Liberal party. The only approach to anything of a " Liberal" tactic was when Mr. Robert Stout'wanted the House of Representatives to affirm the principle of the "State landlord." But we are not strangers to improvidence.. Government savings,banks have tended to indoctrinate saving habits into the minds of the people, but only 'to a certain extent has the experiment succeeded. Of late years our spendingjpower has 'bee'n great^, but our inclination to spend has been almost • equally great. The season of prosperity has not thoroughly taught the virtue of providence ; and if dark days should com,e, it is quite to be anticipated that our working classes will be equally clamorous for violent curesfor social evils, instead of looking to the primal causes of the evils. We are therefore • glad to find that the movement in Britain for training up an enlightened public opinion has its reflection amongst up. The little work, the title of which heads this column, tells us in its preface that—■ ','■' It being now conceded that the title " Economics " Is much more appropriate for the subject of the following pages than the term " Political Economy," which has been so long and so generally applied to the science, except In the. case of a direct quotation, the word Economics has been adopted. The term " Political Economy " is highly objectionable, inasmuch as the subject is political in an altogether secondary and subordinate sense, and is therefore apt—indeed has been found—to 'create misapprehensions. ■ We learn that the patrons of the Economic Society are the Marquis of Normanby and the Marchioness of Normanby. President—, 3ir J. L 0. Richardson. Honorary Presidents—The Right' Rev. the Bishop of Auckland, the Hon. W. Fitzherbert, M.A., John Henry Tancred, Esq., Chancellor of the University of New Zealand, Judge Chapman, Dunedin, Chancellor of the University of Otago ; and among the vice-presidents we find the Hon. the Premier, Mr. Waterhouse, Mr. Bonar, and The objects of the association are stated as follows : The special objects of the association are to enlourage the teaching and study of Economics as part Df the regular work of the school, • conjointly, if possible, with the promotion of the introduction into the. school of the savings bank, by the agency of which, habits of thrift may be encouraged amongst the young of all classes, both as an applied form of Economics, and as a branch of systematic education. The Editor says also:— Thinking and intelligent persons are now generally jgreed that the science of Economics should , form a part of the ordinary school education of every child ; yet in the programmes followed at most of our schools, how seldom do we find that this branch has i place? ... ■' ' But what is the science of Economics!? says a not unintelligent young friend, whose notions about it ire vague and hazy, and who, in her search after material for self-guidance, had not met with either Mrs. Butler or. Canon Kingsley. Briefly, it has to do with the conduct 6f individuals and of society in general, in so far as they are producers or users or storers-up of wealth : it determines the nature of wealth, and deals with laws which govern its produc- ; tion and distribution. The phrase means derivatively the " laws of the household," and the tendency of ■ the science is to regard the whole of society as one great household. Just as the welfare of a household depends upon good management and direction of indivictual aptitudes, and the physical intellectual capaci- | ties of each member,' so does, the same rule apply to j Bocietylover a more extended surface; but with the limi- j tation contained in our definition of the science. Very ' clear are the words of Aristotle: "If one and the' ' same thing is beneficial to the individual and to the communiey, it seems nobler and better to keep for the community. For the individual indeed it is desirable,. but for nations and states it is more excel- ; lent and divine. Our science, therefore, as it concerns social well-being, has this for its aim." The population of New Zealand is made up of single' individuals; and on what, it may be asked, iocs its prosperity depend? Not altogether, as has been affirmed, on its boundless material resources, or the enterprise, or energy, or industry of its people. [ The outcome of all these in yearly exports and im- i ports to the value of millions and millions, would testify to but one part of the question ; they might inly blind the.outside world to a seething mass of ' pice and misery, which might be co-existent with the i Dutward prosperity. The true prosperity'of these- : islands depends on the aggregate of individual prosperity, and this must descend in its application to individual conduct. Every individual must be, ' ;aught to see that his welfare is in his own hands; ;hat ; "he must make it himself by economy, by 'rugality, by thrift, and by fulfilling the conditions

* The Study of Economics and Savings Banks in the School: A plea for Economics, theoretical and practical, being the projection of an association for promoting the introduction of the study of Economics, as a branch of ordinary education, into the school, Ite.

which Divine Providence has appointed as inevitable and indispensable to success in life, which, however, is not everything in the world." No, it is but a part, though a most important part, of man's chief end ; and surely such a part, as demands practical recognition in the school. Our zeal quickens at the thought of the grand and noble aims which might inspire the teaching power of our still infant colony, not yet afflicted with that cancer of older countries—that mother of vice and crime—Poverty. Suffice it to say, that if it be conceded that the pupil on leaving school, ought as far as possible to have some knowledge that would aid him in his future self-guidance, and some general idea of the principles and conduct which promote the well-being and happiness of a people,, then it is virtually admitted that the science of Economics should form part of his school education. We can only add that the objects of the association deserve every support, and we feel convinced that if the work be carried on with ordinary prudence, much good will result.