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dans le passé" and "Les précurseurs du socialisme moderne" in La Revue Socialiste for December 1889 and January 1890.-E. de Laveleye's article in Contemporary Review for January 1890, on "Two New Utopias," also Eugen Richter's Socialdemokratische Zukunftsbilder, trans. by H. Wright, 1894, a satirical brochure on the most recent forms of socialism (see COMMUNISM).]

М. К.

UTOPIAS AND MODERN SOCIALISM. - Recent Utopias illustrate the triumph of natural science (E. Bulwer Lytton, Coming Race, 1871), of a moral paradox (S. Butler, Erewhon, 1872), or of socialism based on contract (G. Rossi, Un Comune Socialista, 1884), or on the state (E. Bellamy, Looking Backward, 1889; which merely throws Utopian drapery around Lytton Gronlund's Co-operative Commonwealth, 1884; Bebel's Woman, 1893, 1st German ed., 1883), or of anarchical communism (W. Morris, News from Nowhere, 1890; joy in beautiful work is the only motive which holds men together; this is the finest Utopia since More's), or of anarchical individualism (W. Bode, Indivi, 1892), or of individualistic co-operation plus a free use of land and productive capital, which is practically communism (Hertzka, Freeland, 1891; Visit to Freeland, 1894; Entrückt in die Zukunft, 1895; C. Secrétan, Mon Utopie, 1892; M. Flürscheim, Money Island, 1896). These recent Utopias are very similar: thus there is but a narrow line between Morris's and Bode's anarchy and between Flürscheim's co-operative societies, which cover the whole state and own land and capital, and Bellamy's state. Socialists who repudiate Utopianism include under that name any set complete scheme (F. Engels, Socialism, Utopian and Scientific, 1892; A. Bebel, Zukunftsstaat, 1893). J. D. R. UTTER OR CIRCULATE. BANK NOTE.

See BANKING;

UZTÁRIZ, JERONIMO DE (born in 1689); under King Philip V. (reigned 1712-1746), he was a member of the council of trade, and of the council of the Indies.

His Teórica y práctica de Comercio y de Marina para su pronta restauracion, appeared, Madrid, 1724; two other editions, "corrected and enlarged by the author," followed 1742 and 1757.

In his preface, Uztáriz states that he has consulted all available sources of information and travelled over France, Italy, England, Flanders, Holland, and the western part of Germany, "correcting in the large ports and emporiums of trade what is always defective and doubtful in purely speculative intelligence." His book is a rich mine of information on the population of Spain, its system of taxation and of colonial government and its commercial policy; many interesting documents of the time of Isabella (reigned 1468-1504) are either given in full or in analysis. He was the earliest to point out that the Spanish official census of population generally |

erred on the side of under-estimating the actual numbers; made for fiscal purposes,account was only taken of the numbers of vecinos or householders.

Uztáriz starts from the fundamental proposition that Spain could only be restored to its former power "by a strong military force, a powerful navy, and a well-regulated and still better protected trade (p. 4, ed. 1724) after the model established in France by COLBERT. The rules he proposes are (1) free admission or with trifling duties of raw materials; (2) high import duties on foreign manufactures; (3) free exports of national manufactures; (4) exemptions or alleviations on such inland taxes as the ALCAVALA (q.v.), the Cientos, etc., granted to the national manufacturers. A trade established on these lines is a comercio útil, or useful; on any It other, it is a comercio dañoso, or hurtful. signifies little whether the customs yield a good revenue; the balance of trade must be the leading aim of the statesmen and monarch. In order to have a useful trade, "we must strive with untiring zeal... to sell to foreign countries more produce and articles than we receive from them" (p. 10), Trade ought not to be passive, but active, namely in the hands of the naturales (native born subjects). However, he allows advantages to be granted to foreign Roman Catholic manufacturers and operatives in order to induce them to settle in Spain (p. 26); still he considers that the native population of Spain is quite sufficient to uphold an active industry; its numbers have been reduced, not as a consequence of the occupation of America, but of "the poverty which resulted from the destruction of trade and manufactures . . . and the excessive weight of taxation increased by fraudulent and extortionate practices in its levy' (p. 30).

Uztáriz remonstrates against most of the existing abuses the excessive number of convents, the monopoly granted to Cadiz for the American trade, the crushing export duties levied on manufactures shipped for America, etc. It should be noticed that though anxious that exemptions or alterations of taxation should be granted to manufacturers, he is adverse to "exclusive privileges" and monopolies; thus he objects to the state monopoly of alcohol, though he admits it for tobacco.

Whatever may be our opinion about his theories, Uztáriz was a conscientious, painstaking, and well informed official, honestly striving to raise his country from the dejection into which it had been sunk by the frightful misgovernment of the Austrian dynasty.

The Teórica was translated into English by Kippax, The Theory and Practice of Commerce and Maritime Affairs (2 vols. 8vo, London, 1751), and into French by Forbonnais, Théorie et Pratique du Commerce et de la Marine (1 vol. 4to, Paris, 1753).

[Wirminghaus, Zwei Spanische Merkantilisten, Jena, 1886.]

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Public provision for the casual poor and the repression of vagrancy are considered to be supplementary to one another, but, except on grounds of social expediency, repression by the state does not involve the obligation of state maintenance.

The number of vagrants relieved on 1st January 1896 by the poor-law guardians in England and Wales was 13,239, but a night count on that 1st January showed the actual number of vagrants to be only 7859 (Local Government Board, A Report, 1896, p. 419). Thus, as locomotion is easy, the number appeared to be nearly twice as large as it really was. Other night counts of vagrants in casual wards, common lodging-houses, and shelters, confirm this result (cp. for instances, Charity Organisation Paper No. 7; report of committee of that society on the Homeless Poor of London, 1891; Appendix lxxxii. to the Report of the Scotch Departmental Committee on Vagrants, Inebriates, etc., 1895; and West Midland Poor-Law Conference, May 1894). It seems probable that in England and Wales the total number of the migratory poor, including strangers in common lodging-houses and vagrants in receipt of poorlaw relief, does not much exceed 30,000. The number of prosecutions for offences under the Vagrant Act in 1895 were for begging, 15,679, for sleeping out, 8159.

The history of the individual vagrant is usually one of personal degradation or incompetency, but economic disturbance increases vagrancy. The less capable morally or intellectually drift into it. The kind of degradation that vagrancy implies is fairly constant and well understood.

The methods of dealing with vagrancy are-(1) punishment and restriction to place of abode or settlement; (2) "correction" with or without employment; (3) employment; (4) restrictive toleration. Burn's History of the Poor-Laws (1764) contains a good statement of penal measures, including instances of (1). In the same spirit, though not probably with the same purpose, is 14 Car. II. c. 12, that originated the present law of "settlement" (Glen's ed. of Archbold's Poor-Law, 1885). Of (2) "correction with employment," Bridewell, founded by Edward VI., where chastisement

was administered with compulsory labour "tu the overthrow of the vicious life of idleness," is an instance. By 18 Eliz. c. 5, houses of correction were substituted for jail for the committal of vagrants. Eden (iii. p. 136) gives the rules of the Bury (Suffolk) House, 1588. The adult reformatories now suggested by some are in principle the same as these houses. The Vagrant Act, 5 Geo. IV., now covers the penal side of vagrancy. Of (3) employment as a remedy, the German and other so-called colony systems are instances (see INDUSTRIAL COLONIES). Restrictive toleration (4) fairly defines the English system from the poor-law side. Every destitute casual pauper is entitled to food and lodging in exchange for work. The casual pauper is not removable. His treatment is regulated by the Casual Poor Act 1882 (44 & 45 Vict. c. 36) and subsequent poorlaw orders (Macmorran and Lushington, 1890). Casual wards are now usually built on the separate cell or room system. The pauper, on admission, has to take a bath and his clothes are disinfected. He has to do a task of work, and, subject to a large discretionary power in the hands of the authorities, cannot discharge himself till the morning, second day after admission. There is a fixed dietary.

There is need of greater uniformity in the detailed enforcement of the English system. Otherwise it meets fairly the demand for considerate treatment, though coupled with irksome conditions. It does not aim at being remedial though it is restrictive. Remedial measures it leaves to other agencies or to economic change, and it is a fact that only in very few cases of vagrants are remedial measures practicable. On the other hand, if carried out with uniformity it does not foster vagrancy, while in particular cases it allows ample discretion. The history of vagrancy appears to justify it.

[Ribton Turner, History of Vagrants and Vagrancy, 1887.-Eden, State of the Poor, 1797. Reports of Inspectors of Poor-Law or Local Government Board, especially 1886 and 1889-95.Reports of Poor Law Conferences, by G. Paul, 1892, and others.-Dépôts de Mendicité, Fasc.: No. 10; Rapport, Conseil Supérieur de l'Assistance Publique, France, 1888.-Camille Garnier, Essai de Bibliographie Charitable, 1891.-M. Bertsch, Ueber Landstreicherei und Bettel, 1894.] c. s. L. VALERIANI, LUIGI MOLINARI (17581828). Born at Imola, near Bologna. A learned man, and well acquainted with the classical languages; he studied poetry, physics, law, and economics. He was appointed in 1797 a member of the legislative body in Milan, and in 1801 professor of public economy at the university of Bologna where Pellegrino Rossi was his pupil.

In his day Valeriani was widely known; he wrote many works, some of which were never published. Though diffuse and obscure in style, his writings deserve attention from the learning they display and a certain originality of conception. both as a lawyer and an economist, his writings bear especially on the relation between economics

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and law. He devoted himself with assiduity to the theory of value, and wrote a book on the subject. He maintains that the law of value depends rigidly on supply and demand, supporting this theory with a geometrical illustration from the relative quantities of both; he combats the theory of cost of production and engaged in a controversy on this question with Melchiorre GIOJA. In illustrating the theory of value he employs mathematical formulæ. These are, however, not employed as a means of investigating the phenomena of prices, but are only symbols employed to express in mathematical language economic laws already known as MONTANARI justly said.

Molinari Valeriani's principal works are :-Del prezzo delle cose tutte mercantili, 1806.-Trattato sulle misure, 1807.-Discorsi, 1809.-Trattato dei cambi, 1823.-Saggio di erotemi di quella parte del gius delle genti e pubblico che dicesi pubblica economia, 1827. [A. Cavazzoni Pederzini, -Intorno alla vita, opere e dottrine di L. Molinari Valeriani, 1859.-Montanari A., La Matematica applicata all' economia politica da Cesare Beccaria, Guglielmo Silio, Luigi Molinari Valeriani, ed Antonio Scialoja (always omitted), 1892.-Cossa, Introduction to the Study of Political Economy, 1893.]

U. R.

VALES REALES. In 1780, in order to meet the debt resulting from the war between England and Spain, a loan of 148,500,000 reales (say £1,485,000) was contracted in Spain under the form of state notes issued under that name, bearing interest at 4 per cent per annum, redeemable within twenty years, and which were to be legal tender at all public offices. Under the pressure of circumstances their total emission attained, in 1788, the amount of 548,905,500 reales (£5,489,055); they were favourably received at first, but they soon lost about 22 per cent of their nominal value. The Banco de San Carlos, which was founded in 1782, with a capital of 300,000,000 reales, having redeemed a certain number of these vales, they rose to a slight premium. However, at the death of King Charles III. (1789), only 15,000,000 reales of vales had been withdrawn from the circulation.

[Piernas Hurtado, Tratado de la Hacienda Pública, vol. ii. pp. 97 and 98 (4th ed., Madrid, 1891).]

E. Ca.

A mere

VALUABLE CONSIDERATION. promise is not enough in English law to create a contractual obligation. In order to form a contract the promise must either be expressed in a deed under seal, or have been made for valuable consideration. Consideration has been

judicially defined as either "some right, interest, profit, or benefit accruing to one party, or some forbearance, detriment, loss, or responsibility given, suffered, or undertaken by the other." It is, in fact, a quid pro quo. Consideration may be either a promise or an act. It must move from, i.e. it must be given by, the promisee. It must be of value in the eye of

Value and Utility, p. 606; Total Utility, p. 606; Mɔnopoly, p. 607; Competition, p. 607; Cost, p. 608; Value in use, p. 608; Value, Normal, p. 609; Value, Origin of, p. 609; Value, Stability of, p. 609; Value, Standard of, p. 609; Value, Subjective and Objec tive, p. 609; Value, Intrinsic, p. 610; Value, Feeling of, p. 610; Value, Surplus, p. 610.

VALUE. The satisfaction of the desires of human beings is conditional, in general, on the possession and use of material objects. At any rate it is convenient, for the sake of brevity, to use phrases referring in the first place to material objects, though it must be understood that the conceptions dealt with apply equally to immaterial sources of satisfaction. In virtue of the dependence of the satisfaction on the object, this object possesses value, in one of the senses in which that word is commonly used, but which may be more conveniently denominated by the word UTILITY (q.v.). When there is in question a class of objects possessing the quality of utility to an individual, it may happen that this individual has at his disposal so large a supply of this class of objects that no one of his desires capable of satisfaction by the use of these objects need go unsatisfied. In such a case, though deprivation of the whole supply would perhaps leave unsatisfied desires of a very urgent nature, the loss of a single one of the class of objects in question would compel, at the worst, the non-satisfaction of a desire of small, perhaps of extremely trifling, urgency; while, if the supply exceeded what the individual were inclined to utilise, the loss of any part or the whole of such excess would not involve any restriction of satisfaction. While the class of objects, viewed as a whole, would possess value, perhaps a very great value, one single object would have a very small value, or even no value at all. It is owing to the application of the same words to such different cases as here indicated, that the apparently paradoxical statement is possible that such indispensable commodities as water are devoid of value.

The relation of the two conceptions covered by the same word is not difficult to appreciate. It is expressed by saying that in the one case what is referred to is the TOTAL UTILITY of his

supply of a commodity to the consumer, in the other case the marginal utility of that supply. When value is conceived of as the power of acquiring other commodities in exchange, a comparison of utilities is involved, in general of marginal utilities, namely the utility of the commodity parted with and that of the commodity acquired in exchange for it. As it is

obvious that a person parting with a portion of his supply of a given class of objects would seek to leave undisturbed the satisfaction of the more urgent of the desires whose satisfaction is dependent on the use of these objects, any restriction in his use of the objects would apply to the less urgent of the needs to which they had been, or might have been, applied. If the commodities acquired by the exchange are estimated to possess a greater utility than those parted with, there are motives urging to further exchange. When equilibrium is attained, the commodity parted with possesses less utility than that obtained in exchange, while to part with a further portion would be to sacrifice a greater utility than was gained by the acquisition of the exchange-equivalent. Thus, in the case of the exchange of goods, the marginal utilities sacrificed and acquired tend to be equalised, which is expressed by saying that the value-in-exchange of a commodity tends to equality with its marginal utility to its possessor. It is to value-in-exchange that reference is usually made in economic discussions when the term value is used without qualification. In virtue of the empirical law (see DEMAND; LAW OF DIMINISHING UTILITY) that the marginal utility of a commodity decreases as the supply increases, the level to which the value of a commodity attains will depend on the available supply. Given the amount of the supply and the demand schedule for the commodity, the position of the marginal use and the amount of the marginal utility at once follow. But the amount of the supply is itself not independent of the valuein-exchange, since production takes place very largely for the purpose of acquiring value by means of exchange rather than of acquiring utilities for direct enjoyment. Even if an isolated individual were considered, his supplies of enjoyable commodities would be limited by the productive energy he was capable of exerting, and he would naturally distribute his efforts so as not to waste effort in realising a small satisfaction which might have been applied to better purpose. There would emerge a relation between the amount of effort applied in any given direction and the marginal utility thereby realised. So also in a developed state of society is there a relation between COST OF PRODUCTION (q.v.) and the value realised as the reward for incurring such cost. The most suitable mode for expressing the relation between value and cost of production will vary with the conditions of supply.

If the supply be conditioned by the existence of a MONOPOLY (q.v.) the exchange-value will not be necessarily in close approximation to the cost. The monopolist will seek to establish such a value-in-exchange as to give the greatest possible net excess over the cost of production. Consumers will adjust their consumption so that to each the marginal utility is brought as

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close as possible to that of the equivalent given in exchange, but the difference between the cost of production and the value will only be limited by the consideration that a moderate profit on a considerable turnover may be preferable to a large profit with a very small sale; that in fact the desirable point is not a large profit on each unit of commodity unless this coincide with the largest possible profit on the whole supply.

When we pass from commodities subject to monopoly conditions to those where commercial and industrial competition modify the problem of value, the profits of producers are subjected to limiting influences. There are three cases to be considered according to the different possible conditions of supply.

(a) If the conditions of supply are such that the cost of production per unit is the same whatever the scale of production, the value tends constantly to the level of cost of production. These costs are to be taken so as to include cost of labour, of hire and wear and tear of capital, and of hire of business ability-in fact, all the outlay necessary that the production may be carried on continuously, without undue losses which would tend to cause production to be restricted, or such large gains as would tempt producers to expand their businesses and tempt those in other occupations to transfer their skill and capital to the one under consideration. If the value should exceed the cost as thus estimatedor as preferably it might be expressed,-if the price exceed the expenses of production, the profits of producers will be so increased that with competition free, supply will be increased, and the marginal utility being lowered with increased supply, value diminishes towards cost of production. If, on the other hand, the value fall short of the cost of production, a tendency to restrict the amount produced results, and with restricted supply, the conditions for in creased marginal utility and increased value are established. If, then, competition be free and active, cost of production will measure value.

(b) If the supply conform to the Law of DIMINISHING RETURNS (q.v.) the condition for the maintenance of the supply is that the value should be sufficient to recoup the expenses of production of that part of the supply produced at the greatest expense; the marginal cost of production becomes the measure of exchange value, the reasoning under (a) applying with increased force in this case in regard to the tendency of competition to bring about this result.

If the demand suffice to carry off, not merely such supplies as are produced under advantageous circumstances, but also supplies produced under less favourable conditions, the control of the more favourable conditions may produce a RENT (q.v.) but the cost of production under these conditions does not provide the measure of exchange value.

(c) If the supply conform to the law of increasing returns (see INCREASING RETURNS), the relation of cost of production to value is obtained by the consideration of a Representative Firm (cp. Professor Marshall's Principles of Economics, bk. v.), a consideration useful in every case, indispensable in this. The expenses of such a firm serve as a type of the expenses necessary to be incurred in order to obtain the usual supply of the commodity. The value of its product must suffice and just suffice to cover its expenses, or changes in the volume of production will be stimulated, the consideration of which lie outside the scope of the present account of the determination of value, changes which would set up new conditions of supply and hence new determinants of value.

In all cases, then, of commodities freely and continuously produced under a régime of competition, the effect of competition is constantly to stimulate a rearrangement of productive effort when the value of products diverges from the standard given by cost of production. In cost of production must be included profits. The assumption of the existence of commercial competition (see COMPETITION and CUSTOM) means that capital and organising power seek always to obtain the highest reward open to them, thus tending to produce something like a uniform level of interest and of earnings of organising ability of any given grade. By assuming the existence of industrial competition, we assume that labour also seeks to find the most profitable employ. ment open to it, and that thus there is a tendency to equality of remuneration for labour of any given degree of skill and intensity, while differences of reward are proportioned to differences in the exertion or skill demanded. By making these assumptions, it becomes possible to attach some definite meaning to the comparison of costs of production of commodities demanding widely different combinations of labour and capital and widely different qualities in the agents employed. In the case of products obtained by the members of one industrial group by exchange of their products for those of another group, when competition between the groups does not exist, whether what is lacking be one form of competition only or both varieties, the proportionality of cost of production and value has no longer the same causes in operation to maintain it. The principles in accordance with which relative values are determined in this case of non-competing groups are precisely those applicable to the case of values in INTERNATIONAL TRADE (q.v.). Within the limits fixed by comparative cost (see COST, COMPARATIVE AND RELATIVE) the play of reciprocal demand of the non-competing groups for one another's products determines the proportions between the values of the products produced within such a group and the values of those obtained from without by exchange. In all

cases of the determination of value, the use of SUPPLY CURVES and DEMAND CURVES (q.v.) is a great assistance in the clear appreciation of the points involved.

The relation between cost of production and value is of such fundamental importance that it will be worth while to add a little to the above brief and slight sketch of the theory of value in order to indicate the relation of these to one another in the theory of those modern writers, among which the AUSTRIAN SCHOOL Occupy the most important place, who adopt the point of view made familiar in this country by JEVONS (q.v.) that value is dependent entirely upon utility. With this school, the value of all goods ready for consumption is given by the utility they present to consumers. The values of instrumental goods and of labour are derived from the utilities of the products in which they may be expected to result. The writers of this school thus set themselves in direct opposition to those who derive value from the labour expended in production. With the Austrians the labour has value because it can give rise to useful goods, and has value just in the proportion of its contribution towards the production of such goods. There is a sense, however, in which the value of the product is derived from the value of the means of production even in their scheme, which ordinarily inverts this order of dependence. If we suppose a case of such an instrumental good as, say, iron, which contributes to an almost endless variety of products, we may see most easily the line of thought followed. In some uses a given quantity of iron could contribute to a larger utility than in others. If its supply be so great that it exceeds what can be so used as to produce a marginal utility of, say, forty per unit, it will push its way into uses where the marginal utility realised is less, say, thirty-six per unit. What then will happen? Under free competition there cannot remain two different values for the same object, and different units of iron are perfectly capable of mutual replacement before the elaborative process begins. the larger supply and the lower grade of usefulness are permanent phenomena, iron in its former uses cannot retain a higher level of value, and the products to which it formerly contributed a value forty will obtain a lower value, lower precisely to the extent to which the costgood, iron, has decreased in value. In the marginal use the value of the product determines the value of the instrument; in all but the marginal use, the product derives value from the instrument value measured by the instrument's value in its marginal use. The consideration of this view is instructive, and aids in understanding the mutual relationship of marginal utility, value in exchange, and cost of production.

If

Value in use is what is ordinarily designated