But in the midst of this universal relationship, it is easy to see that law, the state and economy constitute a family, as it were apart and more closely connected. (The social sciences, in the narrower sense of the expression.)

They are confined almost exclusively to what Schleiermacher has called "effective action " (wirksame Handeln), while art and science belong almost entirely to the "action of representation" (darstellenden Handeln); and religion and language combine both kinds. Law, the state, and economy too, have their roots so deep in the physical and intellectual imperfection of man, that we can scarcely imagine their continuance beyond his life on earth (Gospel of Matthew, 22, 30). But within these limits, their several provinces and the subjects. with which they are concerned are almost coincident. They only consider these from different points of view: the science of politics from that of sovereignty; the science of Political Economy from that of the satisfaction of the requirement of external goods by the people; the science of law from that of the prevention or the peaceable adjustment of conflicts of will. As every economic act, consciously or unconsciously, supposes forms of law, so, by far the greater number of the laws relating to rights, and the greater number of judgments in the matter of rights, contain an economic eleme... In numberless cases, the science of law gives us only the external how; the deeper why is revealed to us by the science of Political Economy.56 And, as to the state, who, for instance, can appreciate

can not be broken up. (Four Tracts and two Sermons on political and commercial Subjects, 1774, Serm. I.)

↳ Riedel (National Œkonomie, 1838, I, p. 178 seq.), gives a good illustration of the difference between the manner in which law and Political Economy look at the same question. The law (to avoid strife, or to settle controversies) looks upon the debtor as the owner of the capital, and lets him run all the risk; Political Economy, on the other hand, looking deeper into the nature of the contract, reaches an entirely opposite result. The mere jurist has a dangerous tendency to undervalue the reign of the laws of nature; the merc political economist, just as readily, undervalues the element of free will. (Arnold, Cultur und Recht I, 97.) In this respect, the two sciences comple

the political significance of a nobility, without understanding the economic character of rent, and of the possession of large landed estates? Who can politically appreciate the inferior classes of society, unless initiated into a knowledge of the laws that govern wages and population? It were much easier to cultivate psychology without physiology! "The state is society protected by force" (Herbart). There are two bases. to all material power: wealth and warlike ability (zpatavavtizá, according to Thucydides); and how much the latter has need of the former is well expressed by the familiar saying of Montecuccoli: Money is not only the first, but the second and third condition of war." 8

Frederick the Great calls finance the pulse of the state, and Richelieu, the point of support which Archimedes was in search of, to move the world. In all modern nations, the history of the debates on the raising of revenue and of the passing of budgets is, at the same time, the history of parliamentary life; and most great revolutions, the Reformation of the sixteenth century not excepted, if not caused have been promoted, by financial embarassment.

ment each other very well. Roesler (Hildebrand's Jahrb., 1868, II, and 1869, I.) shows, and he does not exaggerate the fact, that political economists have made altogether too little use of the results of the science of law.

"Jurists will always experience the want of divesting their isolated ideas of their purely accidental character, by grouping them together in such a manner as to make them constitute a complete and independent whole. One must be possessed of profound knowledge to perceive their necessary connection from an historico-juridical point of view. Political Economy, with its characteristic accuracy and practical utility, can best take its place, at the present time. It is in the greater number of legal questions, the systematically elaborated science of "the nature of the thing." See the able beginnings of a policy of legislation and higher history of law, based on Political Economy, by H. Dankwardt: N. Œk. und Jurisprudenz, 3 Hefte, 1857, and my preface to Dankwardt's Nationalökonomisch-civilistischen Studien, 1862. 'The intellectual power of a people depends upon the vigorous and harmonious development of all seven spheres of life.

8 Montecuccoli, Besondere und geheime Kriegsnachrichten (Leipzig, 1736). A very similar judgment by Cæsar in Dio Cass., XLII, 49.

SECTION XVII.

SCIENCES RELATING TO NATIONAL LIFE. THE SCIENCE OF PUBLIC ECONOMY.-THE SCIENCE OF FINANCE.

If, by the public economy of a nation, we understand economic legislation and the govermental guidance or direction of the economy of private persons,' the science of public economy becomes, so far as its form is concerned, a branch of political science, while as to its matter, its subject is almost coincident with that of Political Economy. Hence it is, that so many writers use the terms public economy, or the economy of the state (Staatswirthschaft), and National Economy (Volkswirthschaft), as synonymous.2 The hypothesis, in accordance with which, this science should discard all consideration of the state, or should refuse to presuppose its formation,3 would lead us into an ideal region, difficult to define, probably entirely impossible, and inaccessible to experience.

Just as clear, is the close connection between politics and and Political Economy, in the case of the science of finance, or of the science of governmental house-keeping, otherwise the administration of public affairs. The latter, evidently, so far as its end is concerned, belongs to politics, but so far as the means to that end are concerned, to National Economy. As the physiologist cannot understand the action of the human body, without understanding that of the head; so we would not be able to grasp the organic whole of national economy, if we were to leave the state, the greatest economy of all, the

1 Bülan, Handbuch der Staatswirthschaftslehre, 1835.

Thus v. Justi, Staatswirthschaft 1755. Kraus, Staatswirthschaft, published by Auerswald, 1808; Schmulz, Handbuch der Staatswirthschaft, 1S0S. More recently, Hermann, Staatswirthschaftliche Untersuchungen, 1832. In France, the expression économie de l'état, is very seldom used. Gavard, Principes del'E. d'Etat, 1796.

3 Pölitz, Staatswissenschaften im Lichte unserer Zeit,,II, 3. Compare Lotz, Handbuch der Staatswirthschaft (2d ed., 1837), I, 10 ff.

one which uninterruptedly and irresistibly acts on all others, out of consideration.1

5

By the term police, we mean the state power whose office it is, without mediation, to prevent all disturbances of external order among the people. It may extend its action into all the domains of national life mentioned above, whenever external order is there threatened, or calls for protection; but its action is important especially in the domains of law and economy. The science of the police power, therefore, of all those doctrines resulting from investigation into national life, takes up only one phase of each of them; and the phases of doctrine thus taken up, it combines into a whole, for practical ends. Its relation to those sciences is like that of surgery to the medical sciences, or like the science of legal procedure to the science of law.

4 Our view of Political Economy holds a middle place between opposed extremes. The view expressed by Whately, Lectures on Political Economy (1831), No. 1, and covered by the proposed term “catalactics,” is by far too narrow. Similarly, Macleod, Elements of Political Economy, 1858, I, 11. A like objection may be raised to the earlier title of Pritzwitz's book: Die Kunst reich zu werden,― the art of growing rich. On the other hand, Dunoyer, Liberté du Travail (1845), L. IX, ch. I, goes too far altogether: "not only in what manner a nation grows rich, but according to what laws it best succeeds, in the execution of all its functions." And so Storch, Handbuch, translated into German by Rau, I, 9. Many modern writers define Political Economy simply as the theory of society; for instance, Scialoja, Principj. dell'Economia sociale, 1840. Cibrario, E. polit. del medio Evo, III, 1842.

5 For the many and various definitions of the police power, see von Berg, Handbuch des Polezeirechts, I, 1-12; Butte, Versuch der Begründung eines System der Polezei (1807), 6 ff.; Rosshirt, Ueber den Begriff der Staatspolizoi (1817), 34 ff. One of the principal difficulties is, that the practical domain of the police power is, in consequence of the successive grades of civilization through which a people passes, subject to greater modifications than any other state power. We call attention especially to the expressions "without mediation, to prevent," and "external order," in our definition. The church, the school, the administration of justice etc., act mediately towards the prevention of such disturbances; and there are many other institutions which offer immediate protection to order of a higher and more intellectual nature.

SECTION XVIII.

SCIENCES RELATING TO NATIONAL LIFE.-STATISTICS.

Statistics we call the picture or representation of social life at given periods of time, and especially at the present time, drawn on a scale in accordance with the laws of development discovered by means of the theoretical sciences above named; as it were, a section through the stream. (Schlözer calls them: history standing still.) Statistics, as thus defined, are as far removed from saying too much as from saying too little. To give a complete tableau of their object, statistics should, of course, take in the life of a people, in all its aspects. But they should look upon such facts only as their own property, the meaning of which they are able to understand; that is, such only as can be ranged under known laws of development. Unintelligible facts are collected' only in the hope of penetrating into their meaning in the future, by comparing them with one another. In the meantime, they are to the statistician only what unfinished experiments are to the investigator of nature.

The view is daily gaining ground, that statistics should be occupied without, however, confining themselves to them— with present facts, with "facts affecting society and the state, which are susceptible of being expressed in figures."2 The more deceptive the immediate observation of an individual, isolated fact is, in cases where a great number of simultaneous

1 See the great number of earlier definitions collected in R. von Mohl, Gesch. und Literatur der Staatswissenschaften III, pp. 637 ff. There are two principal groups of them, the one of which considers it as the science of things of political note, the other as the science of actual or past conditions.

See Dufau, Traité de Statistique, 1840; Moreau de Jonnès, Elements de Statistique, 1847; Knies, Die Statistik als selbstständige Wissenschaft, 1850. B. Hildebrand, in his Jahrbüchern, 1866, I etc., but especially Quetelet's works. For the contrary view, see Fallati, Einleitung in die Wissenschaft der Statistik der St., 1843; Jonak, Theorie der Statistik, 1856, and Heeren, in the Gött Gelehrten Anzeigen, 1806, No. 84, 1807, 1302.