CHAPTER I

SENIOR’S STATEMENT OF THE THEORY

N. W. SENIOR must be regarded as the founder of the Abstinence theory. It appeared first in his lectures delivered before the University of Oxford, and later in his Outlines of the Science of Political Economy.1

CHAPTER II

CRITICISM OF SENIOR

CHAPTER III

BASTIAT’S STATEMENT

BASTIAT’S much discussed theory of interest may be characterised as a copy of Senior’s Abstinence theory forced into the forms of Bastiat’s Value theory, and thereby much deteriorated. The fundamental thought in each is identical. The postponement of gratification, which Senior calls Abstinence, and Bastiat calls sometimes Delay, sometimes Privation, is a sacrifice demanding compensation. But beyond this they diverge from each other in some respects.

BOOK V

THE LABOUR THEORIES

CHAPTER I

THE ENGLISH GROUP

UNDER the title of the Labour theories I group together a number of theories which agree in explaining interest as a wage for labour rendered by the capitalist.

THE FRENCH GROUP

A second group of Labour theorists pronounce interest to be the wage of that labour which consists in the saving of capital (Travail d’Epargne). This theory is carried out most thoroughly by Courcelle-Seneuil.1

THE GERMAN GROUP

BOOK VI

THE EXPLOITATION THEORY

CHAPTER I

HISTORICAL SURVEY

WE come now to that remarkable theory the enunciation of which, if not the most agreeable among the scientific events of our century, certainly promises to be one of the most serious in its consequences. It stood at the cradle of modern Socialism and has grown up along with it; and to-day it forms the theoretical centre around which move the forces of attack and defence in the struggle of organising human society.

CHAPTER II

RODBERTUS