Principles of Political Economy, Vol. 1Roscher, Wilhelm
History
Principles of Political Economy, Vol. 1
Roscher, Wilhelm
Economics
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 element. 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.(134)(135) And, as to the state, who, for instance, can appreciate
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:(136) wealth and warlike ability (χρήματα—ναυτικά,
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.”(137)
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 embarrassment.
Section XVII.
Sciences Relating To National Life.—The Science Of Public Economy.—The
Science Of Finance.
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