problem to be worked out in his day, and in countries still brooding in the darkness of Protectionism, his work may still be of use. But Adam Smith is no more fit to be made a text-book of the general science of Economics at the present day, than Copernicus is fit to be made a text-book of Astronomy. The great practical problem in Economics at the present day is Credit and Banking, and for these subjects a thorough practical knowledge of Commercial Law and the Mechanism of Commerce, as well as an acquaintance with the principles of modern Algebra is absolutely indispensable. For more than a hundred years Algebraists have been in the habit of calling Debts, or Credit, "Negative Quantities," but not one has given any explanation of the nature of this order of Negative Quantities which can be received as satisfactory. By setting forth the true classification of Property, and exhibiting the actual practice of Commerce, I have shewn the application of this expression; and it will be seen that the doctrines of modern Algebra-the doctrines of Law-and the practice of Commerce-all worked out independently, are in the most perfect harmony with each other, and give a complete solution of the Theory of Credit. The theory of Credit requires the thorough investigation and settlement of every fundamental Conception in Economics; and I have applied the principles of the Inductive Logic of Bacon to give the same generality to the definitions of Economics as is done in all Physical Sciences. Thus by Generalizing all the fundamental Conceptions, and the Law of Value, it is seen how Economics is a Positive Inductive Science. § 1. SOCRATES discouraged the study of Physical Science . 2. BACON proclaims the doctrine of the Continuity of Science 3. He says that Natural Philosophy is the Mother of all Science The Physiocrates said that there is a Natural Moral Science 13 9. Generally admitted that Physical Science is the true basis of Comte fails to make Economics an Inductive Science 18. Unanimous opinion that Economics is an Inductive Science. 21 19. Mr. Mill says the à priori method is the only proper one to 13. Science consists of two parts-General Conceptions and Gene- 14. Relation between these and reality 15. Alleged distinction between minds in science . 16. The formation of Conceptions and Axioms subject to General |