in the shape of gravel or clay, of book-leaves, or of embroidered tissue. Circumstances may, perhaps, render such forms the safest, or a certain complacency may attach to the exhibition of them; into both these advantages we shall inquire afterwards; I wish the reader only to observe here, that exchangeable property which we cannot use is, to us personally, merely one of the forms of money, not of wealth.
37. The third error in the popular view is the confusion of Guardianship with Possession; the real state of men of property being, too commonly, that of curators, not possessors, of wealth.
A man's power over his property is at the widest range of it, fivefold; it is power of Use, for himself, Administration, to others, Ostentation, Destruction, or Bequest: and possession is in use only, which for each man is sternly limited; so that such things, and so much of them as he can use, are, indeed, well for him, or Wealth; and more of them, or any other things, are ill for him, or Illth.16 Plunged to the lips in Orinoco, he shall drink to his thirst measure; more, at his peril: with a thousand oxen on his lands, he shall eat to his hunger measure; more, at his peril. He cannot live in two houses at once; a few bales of silk or wool will suffice for the fabric of all the clothes he can ever wear, and a few books will probably hold all the furniture good for his brain. Beyond these, in the best of us but narrow, capacities, we have but the power of administering, or mal-administering, wealth: (that is to say, distributing, lending, or increasing it);—of exhibiting it (as in magnificence of retinue or furniture),—of destroying, or, finally, of bequeathing it. And with multitudes of rich men, administration degenerates into curatorship; they merely hold their property in charge, as Trustees, for the benefit of some person or persons to whom it is to be delivered upon their death; and the position, explained in clear terms, would hardly seem a covetable one. What would be the probable feelings of a youth, on his entrance into life, to whom the career hoped for him was proposed in terms such as these: "You must work unremittingly, and with your utmost intelligence, during all your available years, you will thus accumulate wealth to a large amount; but you must touch none of it, beyond what is needful for your support. Whatever sums you gain, beyond those required for your decent and moderate maintenance, and whatever beautiful things you may obtain possession of, shall be properly taken care of by servants, for whose maintenance you will be charged, and whom you will have the trouble of superintending, and on your deathbed you shall have the power of determining to whom the accumulated property shall belong, or to what purposes be applied."
38. The labour of life, under such conditions, would probably be neither zealous nor cheerful; yet the only difference between this position and that of the ordinary capitalist is the power which the latter supposes himself to possess, and which is attributed to him by others, of spending his money at any moment. This pleasure, taken in the imagination of power to part with that with which we have no intention of parting, is one of the most curious, though commonest forms of the Eidolon, or Phantasm of Wealth. But the political economist has nothing to do with this idealism, and looks only to the practical issue of it—namely, that the holder of wealth, in such temper, may be regarded simply as a mechanical means of collection; or as a money-chest with a slit in it, not only receptant but suctional, set in the public thoroughfare;—chest of which only Death has the key, and evil Chance the distribution of the contents. In his function of Lender (which, however, is one of administration, not use, as far as he is himself concerned), the capitalist takes, indeed, a more interesting aspect; but even in that function, his relations with the state are apt to degenerate into a mechanism for the convenient contraction of debt;—a function the more mischievous, because a nation invariably appeases its conscience with respect to an unjustifiable expense, by meeting it with borrowed funds, expresses its repentance of a foolish piece of business, by letting its tradesmen wait for their money, and always leaves its descendants to pay for the work which will be of the least advantage to them.17
39. Quit of these three sources of misconception, the reader will have little farther difficulty in apprehending the real nature of Effectual value. He may, however, at first not without surprise, perceive the consequences involved in his acceptance of the definition. For if the actual existence of wealth be dependent on the power of its possessor, it follows that the sum of wealth held by the nation, instead of being constant, or calculable, varies hourly, nay, momentarily, with the number and character of its holders! and that in changing hands, it changes in quantity. And farther, since the worth of the currency is proportioned to the sum of material wealth which it represents, if the sum of the wealth changes, the worth of the currency changes. And thus both the sum of the property, and power of the currency, of the state, vary momentarily as the character and number of the holders. And not only so, but different rates and kinds of variation are caused by the character of the holders of different kinds of wealth. The transitions of value caused by the character of the holders of land differ in mode from those caused by character in holders of works of art; and these again from those caused by character in holders of machinery or other working capital. But we cannot examine these special phenomena of any kind of wealth until we have a clear idea of the way in which true currency expresses them; and of the resulting modes in which the cost and price of any article are related to its value. To obtain this we must approach the subject in its first elements.
40. Let us suppose a national store of wealth, composed of material things either useful, or believed to be so, taken charge of by the Government,18 and that every workman, having produced any article involving labour in its production, and for which he has no immediate use, brings it to add to this store, receiving from the Government, in exchange, an order either for the return of the thing itself, or of its equivalent in other things, such as he may choose out of the store, at any time when he needs them. The question of equivalence itself (how much wine a man is to receive in return for so much corn, or how much coal in return for so much iron) is a quite separate one, which we will examine presently. For the time, let it be assumed that this equivalence has been determined, and that the Government order, in exchange for a fixed weight of any article (called, suppose a), is either for the return of that weight of the article itself, or of another fixed weight of the article b, or another of the article c, and so on.
Now, supposing that the labourer speedily and continually presents these general orders, or, in common language, "spends the money," he has neither changed the circumstances of the nation, nor his own, except in so far as he may have produced useful and consumed useless articles, or vice versâ. But if he does not use, or uses in part only, the orders he receives, and lays aside some portion of them; and thus every day bringing his contribution to the national store, lays by some per-centage of the orders received in exchange for it, he increases the national wealth daily by as much as he does not use of the received order, and to the same amount accumulates a monetary claim on the Government. It is, of course, always in his power, as it is his legal right, to bring forward this accumulation of claim, and at once to consume, destroy, or distribute, the sum of his wealth. Supposing he never does so, but dies, leaving his claim to others, he has enriched the State during his life by the quantity of wealth over which that claim extends, or has, in other words, rendered so much additional life possible in the State, of which additional life he bequeaths the immediate possibility to those whom he invests with his claim. Supposing him to cancel the claim, he would distribute this possibility of life among the nation at large.
41. We hitherto consider the Government itself as simply a conservative power, taking charge of the wealth entrusted to it.
But a Government may be more or less than a conservative power. It may be either an improving, or destructive one.
If it be an improving power, using all the wealth entrusted to it to the best advantage, the nation is enriched in root and branch at once, and the Government is enabled, for every order presented, to return a quantity of wealth greater than the order was written for, according to the fructification obtained in the interim. This ability may be either concealed, in which case the currency does not completely represent the wealth of the country, or it may be manifested by the continual payment of the excess of value on each order, in which case there is (irrespectively, observe, of collateral results afterwards to be examined) a perpetual rise in the worth of the currency, that is to say, a fall in the price of all articles represented by it.
42.