THE FIRST GROUP OF ESSENTIAL LAWS—AGAINST THEFT BY FALSE WORK, AND BY BANKRUPTCY.—NECESSARY PUBLICITY OF ACCOUNTS.

March 26, 1867.

76. I feel much inclined to pause at this point, to answer the kind of questions and objections which I know must be rising in your mind, respecting the authority supposed to be lodged in the persons of the officers just specified. But I can neither define, nor justify to you, the powers I would desire to see given to them, till I state to you the kind of laws they would have to enforce: of which the first group should be directed to the prevention of all kinds of thieving; but chiefly of the occult and polite methods of it; and, of all occult methods, chiefly, the making and selling of bad goods. No form of theft is so criminal as this—none so deadly to the State. If you break into a man's house and steal a hundred pounds' worth of plate, he knows his loss, and there is an end (besides that you take your risk of punishment for your gain, like a man). And if you do it bravely and openly, and habitually live by such inroad, you may retain nearly every moral and manly virtue, and become a heroic rider and reiver, and hero of song. But if you swindle me out of twenty shillings' worth of quality on each of a hundred bargains, I lose my hundred pounds all the same, and I get a hundred untrustworthy articles besides, which will fail me and injure me in all manner of ways, when I least expect it; and you, having done your thieving basely, are corrupted by the guilt of it to the very heart's core.

77. This is the first thing, therefore, which your general laws must be set to punish, fiercely, immitigably, to the utter prevention and extinction of it, or there is no hope for you. No religion that ever was preached on this earth of God's rounding ever proclaimed any salvation to sellers of bad goods. If the Ghost that is in you, whatever the essence of it, leaves your hand a juggler's, and your heart a cheat's, it is not a Holy Ghost, be assured of that. And for the rest, all political economy, as well as all higher virtue, depends first on sound work.

Let your laws, then, I say, in the beginning, be set to secure this. You cannot make punishment too stern for subtle knavery. Keep no truce with this enemy, whatever pardon you extend to more generous ones. For light weights and false measures, or for proved adulteration or dishonest manufacture of article, the penalty should be simply confiscation of goods and sending out of the country. The kind of person who desires prosperity by such practices could not be made to "emigrate" too speedily. What to do with him in the place you appoint to be blessed by his presence, we will in time consider.

78. Under such penalty, however, and yet more under the pressure of such a right public opinion as could pronounce and enforce such penalty, I imagine that sham articles would become speedily as rare as sound ones are now. The chief difficulty in the matter would be to fix your standard. This would have to be done by the guild of every trade in its own manner, and within certain easily recognizable limits, and this fixing of standard would necessitate much simplicity in the forms and kinds of articles sold. You could only warrant a certain kind of glazing or painting in china, a certain quality of leather or cloth, bricks of a certain clay, loaves of a defined mixture of meal. Advisable improvements or varieties in manufacture would have to be examined and accepted by the trade guild: when so accepted, they would be announced in public reports; and all puffery and self-proclamation, on the part of tradesmen, absolutely forbidden, as much as the making of any other kind of noise or disturbance.

79. But observe, this law is only to have force over tradesmen whom I suppose to have joined voluntarily in carrying out a better system of commerce. Outside of their guild, they would have to leave the rogue to puff and cheat as he chose, and the public to be gulled as they chose. All that is necessary is that the said public should clearly know the shops in which they could get warranted articles; and, as clearly, those in which they bought at their own risk.

And the above-named penalty of confiscation of goods should of course be enforced only against dishonest members of the trade guild. If people chose to buy of those who had openly refused to join an honest society, they should be permitted to do so, at their pleasure, and peril: and this for two reasons,—the first, that it is always necessary, in enacting strict law, to leave some safety valve for outlet of irrepressible vice (nearly all the stern lawgivers of old time erred by oversight in this; so that the morbid elements of the State, which it should be allowed to get rid of in a cutaneous and openly curable manner, were thrown inwards, and corrupted its constitution, and broke all down);—the second, that operations of trade and manufacture conducted under, and guarded by, severe law, ought always to be subject to the stimulus of such erratic external ingenuity as cannot be tested by law, or would be hindered from its full exercise by the dread of it; not to speak of the farther need of extending all possible indulgence to foreign traders who might wish to exercise their industries here without liability to the surveillance of our trade guilds.

80. Farther, while for all articles warranted by the guild (as above supposed) the prices should be annually fixed for the trade throughout the kingdom; and the producing workman's wages fixed, so as to define the master's profits within limits admitting only such variation as the nature of the given article of sale rendered inevitable;—yet, in the production of other classes of articles, whether by skill of applied handicraft, or fineness of material above the standard of the guild, attaining, necessarily, values above its assigned prices, every firm should be left free to make its own independent efforts and arrangements with its workmen, subject always to the same penalty, if it could be proved to have consistently described, or offered, anything to the public for what it was not: and finally, the state of the affairs of every firm should be annually reported to the guild, and its books laid open to inspection, for guidance in the regulation of prices in the subsequent year; and any firm whose liabilities exceeded its assets by a hundred pounds should be forthwith declared bankrupt. And I will anticipate what I have to say in succeeding letters so far as to tell you that I would have this condition extend to every firm in the country, large or small, and of whatever rank in business. And thus you perceive, my friend, I shall not have to trouble you or myself much with deliberations respecting commercial "panics," nor to propose legislative cures for them, by any laxatives or purgatives of paper currency, or any other change of pecuniary diet.