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person's possession. All money is a divisible title-deed, of immense importance as an expression of right to property, but absolutely valueless as property itself. Thus, supposing a nation isolated from all others, the money in its possession is, at its maximum value, worth all the property of the nation, and no more, because no more can be got for it. And the money of all nations is worth, at its maximum, the property of all nations, and no more, for no more can be got for it. Thus, every article of property produced increases, by its value, the value of all the money in the world, and every article of property destroyed, diminishes the value of all the money in the world. If ten men are cast away on a rock, with a thousand pounds in their pockets, and there is on the rock, neither food nor shelter, their money is worth simply nothing, for nothing is to be had for it. If they built ten huts, and recover a cask of biscuit from the wreck, then their thousand pounds, at its maximum value, is worth ten huts and a cask of biscuit. If they make their thousand pounds into two thousand by writing new notes, their two thousand pounds are still worth ten huts and a cask of biscuit. And the law of relative value is the same for all the world, and all the people in it, and all their property, as for ten men on a rock. Therefore, money is truly and finally lost in the degree in which its value is taken from it (ceasing in that degree to be money at all); and it is truly gained in the degree in which value is added to it. Thus, suppose the money coined by the nation be a fixed sum, and divided very minutely (say into francs and cents), and neither to be added to nor diminished. Then every grain of food and inch of lodging added to its possessions makes every cent in its pockets worth proportionally more, and every gain of food it consumes, and inch of roof it allows to fall to ruin, makes every cent in its pockets worth less; and this with mathematical precision. The immediate value of the money at particular times and places depends, indeed, on the humors of the possessors of property; but the nation is in the one case gradually getting richer, and will feel the pressure of poverty steadily everywhere relaxing, whatever the humors of individuals may be; and, in the other case, is gradually growing poorer, and the pressure of its poverty will every day tell more and more, in ways that it cannot explain, but will most bitterly feel. The actual quantity of money which it coins, in relation to its real property, is therefore only of consequence for convenience of exchange; but the proportion in which this quantity of money is divided among individuals expresses their various rights to greater or less proportions of the national property, and must not, therefore, be tampered with. The government may at any time, with perfect justice, double its issue of coinage, if it gives every man who has ten pounds in his pocket another ten pounds, and every man who had ten pence another ten pence; for it thus does not make any of them richer; it merely divides their counters for them into twice the number. But if it gives the newly-issued coins to other people, or keeps them itself, it simply robs the former holders to precisely that extent. This most important function of money, as a title-deed, on the non-violation of which all national soundness of commerce and peace of life depend, has been never rightly distinguished by economists from the quite unimportant function of money as a means of exchange. You can exchange goods--at some inconvenience, indeed, but you can still contrive to do it--without money at all; but you cannot maintain your claim to the savings of your past life without a document declaring the amount of them, which the nation and its government will respect. And as economists have lost sight of this great function of money in relation to individual rights, so they have equally lost sight of its function as a representative of good things. That, for every good thing produced, so much money is put into everybody's pocket, is the one simple and primal truth for the public to know, and for economists to teach. How many of them have taught it? Some have; but only incidentally; and others will say it is a truism. If it be, do the public know it? Does your ordinary English householder know that every costly dinner he gives has destroyed forever as much money as it is worth? Does every well-educated girl--do even the women in high political position--know that every fine dress they wear themselves, or cause to be worn, destroys precisely so much of the national money as the labor and material of it are worth? If this be a truism, it is one that needs proclaiming somewhat louder. That, then, is the relation of money and goods. So much goods, so much money; so little goods, so little money. But, as there is this true relation between money and "goods," or good things, so there is a false relation between money and "bads," or bad things. Many bad things will fetch a price in exchange; but they do not increase the wealth of the country. Good wine is wealth, drugged wine is not; good meat is wealth, putrid meat is not; good pictures are wealth, bad pictures are not. A thing is worth precisely what it can do for you; not what you choose to pay for it. You may pay a thousand pounds for a cracked pipkin, if you please; but you do not by that transaction make the cracked pipkin worth one that will hold water, nor that, nor any pipkin whatsoever, worth more than it was before you paid such sum for it. You may, perhaps, induce many potters to manufacture fissured pots, and many amateurs of clay to buy them; but the nation is, through the whole business so encouraged, rich by the addition to its wealth of so many potsherds,--and there an end. The thing is worth what it CAN do for you, not what you think it can; and most national luxuries, nowadays, are a form of potsherd, provided for the solace of a self-complacent Job, voluntary sedent on his ash-heap. And, also, so far as good things already exist, and have become media of exchange, the variations in their prices are absolutely indifferent to the nation. Whether Mr. A. buys a Titian from Mr. B. for twenty, or for two thousand, pounds, matters not sixpence to the national revenue; that is to say, it matters in nowise to the revenue whether Mr. A. has the picture, and Mr. B. the money, or Mr. B. the picture, and Mr. A. the money. Which of them will spend the money most wisely, and which of them will keep the picture most carefully, is, indeed, a matter of some importance; but this cannot be known by the mere fact of exchange. The wealth of a nation then, first, and its peace and well-being besides, depend on the number of persons it can employ in making good and useful things. I say its well-being also, for the character of men depends more on their occupations than on any teaching we can give them, or principles with which we can imbue them. The employment forms the habits of body and mind, and these are the constitution of the man,--the greater part of his moral or persistent nature, whatever effort, under special excitement, he may make to change or overcome them. Employment is the half, and the primal half, of education--it is the warp of it; and the fineness or the endurance of all subsequently woven pattern depends wholly on its straightness and strength. And, whatever difficulty there may be in tracing through past history the remoter connections of event and cause, one chain of sequence is always clear: the formation, namely, of the character of nations by their employments, and the determination of their final fate by their character. The moment, and the first direction of decisive revolutions, often depend on accident; but their persistent course, and their consequences, depend wholly on the nature of the people. The passing of the Reform Bill by the late English Parliament may have been more or less accidental; the results of the measure now rest on the character of the English people, as it has been developed by their recent interests, occupations, and habits of life. Whether, as a body, they employ their new powers for good or evil will depend, not on their facilities of knowledge, nor even on the general intelligence they may possess, but on the number of persons among them whom wholesome employments have rendered familiar with the duties, and modest in their estimate of the promises, of life. But especially in framing laws respecting the treatment or employment of improvident and more or less vicious persons, it is to be remembered that as men are not made heroes by the performance of an act of heroism, but must be brave before they can perform it, so they are not made villains by the commission of a crime, but were villains before they committed it; and the right of public interference with their conduct begins when they begin to corrupt themselves,--not merely at the moment when they have proved themselves hopelessly corrupt.

All measures of reformation are effective in exact proportion to their timeliness: partial decay may be cut away and cleansed; incipient error corrected; but there is a point at which corruption can be no more stayed, nor wandering recalled. It has been the manner of modern philanthropy to remain passive until that precise period, and to leave the sick to perish, and the foolish to stray, while it spends itself in frantic exertions to raise the dead, and reform the dust.

The recent direction of a great weight of public opinion against capital punishment is, I trust, the sign of an awakening perception that punishment is the last and worst instrument in the hands of the legislator for the prevention of crime. The true instruments of reformation are employment and reward; not punishment. Aid the willing, honour the virtuous, and compel the idle into occupation, and there will be no deed for the compelling of any into the great and last indolence of death.

The beginning of all true reformation among the criminal classes depends on the establishment of institutions for their active employment, while their criminality is still unripe, and their feelings of self-respect, capacities of affection, and sense of justice, not altogether quenched. That those who are desirous of employment should always be able to find it, will hardly, at the present day, be disputed; but that those who are undesirous of employment should of all persons be the most strictly compelled to it, the public are hardly yet convinced; and they must be convinced. If the danger of the principal thoroughfares in their capital city, and the multiplication of crimes more ghastly than ever yet disgraced a nominal civilization, are not enough, they will not have to wait long before they receive sterner lessons. For our neglect of the lower orders has reached a point at which it begins to bear its necessary fruit, and every day makes the fields, not whiter, but more stable, to harvest. The general principles by which employment should be regulated may be briefly stated as follows: There being three great classes of mechanical powers at our disposal, namely, (a) vital or muscular power; (b) natural mechanical power of wind, water, and electricity; and (c) artificially produced mechanical power; it is the first principle of economy to use all available vital power first, then the inexpensive natural forces, and only at last have recourse to
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