the lengthening of the trains of production.95 It may be doubted whether any great lengthening of the
trains is possible without a concomitant improvement in the arts of production; yet, as Sidgwick
observes,96 invention is not necessarily followed by increase of capitalisation.97
The third head of progress even more surely than the second will be attended with changes
in the channels of production. As already observed with reference to the portion of truth contained
in the wage-fund theory, time will in general be required for the carrying out of such changes. The
means of production which are rolling down the channels at the instant when the change begins must
all or in great part be suffered to run out: otherwise there will probably be a considerable waste of
labour, and interruption to consumption. One delicate adjustment which would be deranged can only
be alluded to here—the monetary circulation, especially that form of it which consists of debts that
are continually “cleared,” or cancelled. We might imagine the flow of factors in the channels of
production and the flight of finished products backward on the way to consumption to be attended
each with a displacement of air in a direction opposite to the main movement,—light counter-
currents which have their use in facilitating the movements of solid wealth, and in the fulfilment of
their useful function continually meet and neutralize each other. But, evidently, we have reached the
degree of complexity at which the illustration becomes more difficult to understand than the thing
which is to be illustrated. For a more concrete embodiment of a more complete theory the student
is referred to the Principles of Economics,—a reference of which the value is, if possible, enhanced
by the solid work which Mr. N. G. Pierson has published under the same title.98
The preceding hints and metaphors and warnings may assist the student to obtain a general
idea of the process by which distribution of the national income is effected. An outline of theory so
abstract is not to be despised as useless. It satisfies a legitimate curiosity. It is part of a liberal
education. It is comparable in these respects with an elementary knowledge of astronomy. Such
knowledge will not be of much use in navigation. And yet it has a certain bearing on real life. The
diffusion of just notions about astronomy has rendered it impossible for astrologers any longer to
practice on the credulity of mankind. A knowledge of first principles affords a test by which the
authority of those who offer themselves as guides may be estimated. A little science has a further
use: it is of assistance in obtaining more.
As the astronomer will proceed from a first approximation to a second, so economists should
soften the hard outline of abstract theory by a regard to particular circumstances. As he in dealing
95. It is possible, as Mill shows, Political Economy, Book I, chap. vi, §2 (cp. Ricardo on machinery
and Mr. Pierson, Principles of Economics p. 311), that lengthening the period of investment, and also
invention, while it increases the amount of goods accruing to the capitalist, may diminish the amount
accruing to the workers. What Mill says in this connection of the “fresh creation“ of capital and
“additional saving consequent on improvements” is made more intelligible by the use of the
illustration here offered.
96. Political Economy, Book I, chap. iv, §8.
97. Loc. cit. Mill treats capital and arts of production as independent variables. Political Economy,
Book IV, chap. iii.
98. Translated into English from the Dutch by Wotzel.