Part 4

If thou thinkest that thou knowest much: yet there are many more things which thou knowest not.

Be not over wise, but rather acknowledge thine own ignorance.

The highest and most profitable lesson is, the true knowledge of ourselves.

It is great wisdom to esteem ourselves nothing, and to think always well and highly of others.

We are all frail, but remember, none more frail than thyself.

[_December 9._]

It is good that we be sometimes contradicted; and that men think ill of us, and this, although we do not intend well.

For then we more diligently seek God for our inward witness, when outwardly we are contemned by men.

Wherefore a man should settle himself so fully in God, that he need not seek comforts of men.

When a man is afflicted, tempted, or troubled with evil thoughts; then he understandeth better the great need he hath of God.

So long as we live in this world, we can not be without temptation.

Hence it is written in Job, “The life of man is a warfare upon earth.”

Temptations are often very profitable to men, though they be troublesome and grievous; for in them a man is humbled, purified, and instructed.

All the saints have passed through, and profited by, many tribulations, and temptations:

And they that could not bear temptations, became reprobates and fell away.

There is no place so secret, where there are no temptations.

There is no man that is altogether secure from temptations while he liveth.

When one temptation goeth away, another cometh; and we shall ever have something to suffer.

Many seek to fly temptations, and fall more grievously into them.

By flight alone we can not overcome, but by patience and humility we conquer all our enemies.

He that only avoideth them outwardly, and doth not pluck them up by the roots, shall profit little: yea, temptations will soon return unto him, and he shall feel them worse than before.

By patience (through God’s help) thou shalt more easily overcome, than by harsh and disquieting efforts in thy own strength.

Often take counsel in temptations; and deal not roughly with him that is tempted.

The beginning of temptation is inconstancy of mind, and little confidence in God.

For as a ship without a rudder is tossed to and fro with the waves, so the man that is negligent is many ways tempted.

Fire trieth iron, and temptation a just man.

We know not often what we are able to do: but temptations show us what we are.

We must be watchful, especially in the beginning of the temptation; for the enemy is then more easily overcome, if he be not suffered to enter the door of your hearts, but be resisted without the gate at his first knock.

Wherefore one said, “Withstand the beginning: for an after remedy comes too late.”

First, there occurreth to the mind a simple evil thought; then a strong imagination; afterward delight; and lastly consent.

And so by little and little our malicious enemy getteth entrance, while he is not resisted in the beginning.

And the longer one is slack in resisting, the weaker he becomes daily, and the enemy stronger against him.

Some suffer the greatest temptation in the beginning of their conversion; others in the latter end.

Others again are much troubled almost throughout their life.

Some are but slightly tempted, according to the wisdom which weigheth the states of men, and ordereth all things for the good of his elect.

We ought therefore, when we are tempted, so much the more fervently to pray unto God; who surely will give with the temptation, a way to escape, that we may be able to bear it.

Let us therefore humble ourselves under the hand of God, in all temptations and tribulations; for he will exalt the humble in spirit.

In temptations and afflictions a man is proved how much he hath profited.

Neither is it any such great thing if a man be devout and fervent, when he feeleth no affliction; but if in time of adversity he bear himself patiently, there is hope then of great proficiency.

Some are kept from great temptations, and are overcome in small ones; that being humbled, they may never trust themselves in great matters, who are baffled in so small things.

[_December 16._]

Turn thine eyes unto thyself, and beware thou judge not the deeds of other men.

In judging others a man laboreth in vain, often erreth, and easily sinneth; but in judging and examining himself, he always laboreth fruitfully.

We often judge of things according as we fancy them: for affection bereaves us easily of a right judgment.

If God were always our desire, we should not be so much troubled when our inclinations were opposed.

But oftentimes something lurks within, which draweth us after it.

Many secretly seek themselves in their actions, but know it not.

They live in peace of mind when things are done according to their will: but if things succeed otherwise than they desire, they are straightway troubled.

Diversity of inclinations and opinions often causes dissensions between religious persons, between friends and countrymen.

An old custom is hardly broken, and no man is willing to be led farther than himself can see.

If thou dost more rely upon thine own reason, than upon Jesus Christ, late, if ever, shalt thou become illuminated.

The outward work without charity, profiteth nothing; but whatsoever is done out of charity, be it ever so little and contemptible in the sight of the world, is wholly fruitful.

For God weigheth more with how much love one worketh, than how much he doeth.

He doth much that loveth much.

He doth much that doth a thing well.

He doth well that serveth his neighbor, and not his own will.

Often it seemeth to be charity, and it is rather carnality; because natural inclinations, self-will, hope of reward, and desire of our own interest, are motives that men are rarely free from.

He that hath true and perfect charity seeketh himself in nothing; but only desireth in all things that God should be exalted.

He envieth none, because he seeketh not his own satisfaction; neither rejoiceth in himself, but chooses God only for his portion.

He attributes nothing that is good to any man, but wholly referreth it unto God, from whom, as from the fountain, all things proceed: in whom finally all the saints rest.

O that he had but one spark of true charity, he would certainly discern that all earthly things are full of vanity!

[_December 23._]

When one that was in great anxiety of mind, often wavering between fear and hope, did once humbly prostrate himself in prayer, and said, O, if I knew that I should persevere! he presently heard within him an answer from God which said, If thou didst know it, what wouldst thou do? Do what thou wouldst do then, and thou shalt be safe.

And being herewith comforted and strengthened, he committed himself wholly to the will of God, and his anxiety ceased:

Neither had he any mind to search curiously farther what should befall him; but rather labored to understand what was the perfect and acceptable will of God, for the beginning and accomplishing every good work.

Hope in the Lord, and do good, saith the prophet, and inhabit the land, and thou shalt be fed.

One thing there is that draweth many back from a spiritual progress, and diligent amendment; the horror of the difficulty, or the labor of the combat.

But they improve most in virtue, that endeavor most to overcome those things which are grievous and contrary to them.

For there a man improveth more, and obtaineth greater grace, where he more overcometh himself and mortifieth himself in spirit.

Gather some profit to thy soul wheresoever thou art; so if thou seest or hearest of any good examples, stir up thyself to the imitation thereof.

But if thou seest anything worthy of reproof, beware thou doest not the same.—And if at any time thou hast done it, labor quickly to amend it.

Be mindful of the profession thou hast made, and have always before thine eyes the remembrance of thy Savior crucified.

Thou hast good cause to be ashamed, looking upon the life of Jesus Christ, seeing thou hast as yet no more endeavored to conform thyself unto him, though thou hast walked a long time in the way of God.

A religious person that exerciseth himself seriously and devoutly in the most holy life and passion of our Lord shall there abundantly find whatsoever is necessary and profitable for him; neither shall he need seek any better thing out of Jesus.

A CHRISTMAS PRAYER.

Come thou O Lord, and dwell within me, giving me light, and love, and liberty. May the spirit of the sweet Christmas Child possess me! May the Star of Bethlehem abide above my dwelling place! May the angels who seek thee be drawn toward me, and surround my path! May their song fill my life. Glory to God in the highest. On earth peace, good will to men.

[_December 30._]

This life will soon be at an end; consider therefore how thy affairs stand as to the next.

Man is here to-day; to-morrow he is gone.

When he is out of sight, he is soon forgotten.

Thou shouldst so order thyself in all thy thoughts and all thy actions, as if thou wert to die to-day.

Hadst thou a clear conscience, thou wouldst not fear death.

It were better to avoid sin than to fly death.

If thou art not prepared to-day, how wilt thou be to-morrow?

To-morrow is uncertain, and how knowest thou that thou shalt live till to-morrow?

What availeth to live long, when we are so little the better?

Alas! long life doth not always mend us; but often increased guilt.

O, that we had spent but one day well in this world!

When it is morning, think thou mayst die before night.

When evening comes, dare not to promise thyself the next morning.

Be therefore always in readiness; and so live that death may never take thee unprepared.

Many die suddenly, and when they look not for it; for “in such an hour as you think not, the Son of man cometh.” Matt. xxiv: 44.

When that last hour shall come, thou wilt have a far different opinion of thy whole life.

How wise and happy is he, that laboreth to be such in his life as he would wish to be found at the hour of his death.

Whilst thou art in health, thou mayst do much good, but when thou art sick, I know not what thou wilt be able to do.

Few by sickness grow better; and they who travel much are seldom sanctified.

Trust not in friends and kindred, neither put off the care of thy soul till hereafter, for man will sooner forget thee than thou art aware of.

If thou art not careful for thyself now, who will be careful for thee hereafter?

The time present is very precious; now are the days of salvation, now is the acceptable time.

But alas! that thou shouldst spend thy time no better here, where thou mightest purchase life eternal. The time will come when thou shalt desire one day or hour to amend in, and I can not say it will be granted thee.

Ah fool! why dost thou think to live long, when thou canst not promise thyself one day!

How many have been deceived, and suddenly snatched away!

How often dost thou hear, such a man is slain, another is drowned, a third has broken his neck with a fall; this man died eating, and that playing?

One perished by fire, another by sword, another of the plague, another was slain by thieves! Thus death is the end of all, and man’s life suddenly passeth away like a shadow.

Who shall remember thee when thou art dead? Do, do now, my beloved, whatsoever thou art able to do: for thou knowest not when thou shalt die, nor yet what shall be after thy death.

Now, while thou hast time, lay up for thyself everlasting riches.

Keep thy heart free, and lifted up to God, because thou hast here no abiding city.

Send thither thy daily prayers, and sighs, and tears, that after death thy spirit may happily pass to the Lord. _Amen._

POLITICAL ECONOMY.

By G. M. STEELE, D.D.

III.

EXCHANGE.

1. Exchange is the mutual and voluntary transfer of the right of property held by different persons. This implies, (_a_) the existence of the _right of property_; (_b_) that the transfer must be _mutual_, otherwise there is no exchange; (_c_) that it be _voluntary_, otherwise it would be robbery.

2. The principles that form the basis of exchange are the same as those implied in the great law of association and individuality; namely, those which give rise to the combination and division of labor. There is usually some one kind of labor, or at most a few kinds, for which each individual is competent. But the variety of occupations so nearly corresponds with the variety of aptitudes in every well-ordered community, that each may, with little effort, find the calling to which he is suited.

But while each individual is thus limited in his productive capabilities, his claims and wants are nearly limitless. He is in need of a thousand commodities, only a very few of which he can produce. He depends for the remainder of these upon his fellow-men. On the other hand, he can produce a thousand times as much of the few kinds of commodities to which he devotes himself, as he himself needs. These he transfers to his fellow-men, taking in return the surplus of their several products. This is exchange, or commerce. It is implied in the very constitution of man. Association is an imperative condition of humanity.

3. A distinction is sometimes made between _commerce_ and _trade_—a wise distinction, as it seems to me, though observed by but few writers. The former is the _object_ to be accomplished; the latter is the _agency_ through which it is accomplished. Thus, a farmer has wheat, butter, eggs, poultry, wool, etc., which he wishes to exchange for cloth, sugar, agricultural implements, boots and shoes, and a hundred other articles. He can not go to the several producers of these, carrying his own products to exchange for them, except at immense disadvantage. Hence arises the necessity for the trader, or merchant. Trade and commerce have sometimes been represented as mutually antagonistic. This is true only to a certain extent. The great economical point to be guarded is to have no more traders than are necessary to make the exchanges. When the industrial and commercial conditions of a country are such that the producers and consumers, who are the real exchangers, are placed and kept at a great distance from each other, so that they can not combine with each other except through the agency of a great number of middle-men, the conditions are highly detrimental to the interests of the parties chiefly concerned. Beyond a certain point, the greater the power of trade, the worse it is for commerce. It is nevertheless true that there are certain natural obstacles to direct commerce which can be surmounted only by some kind of intermediate agency; and this makes the trader necessary. In this respect, and to this extent, trade is an aid to commerce. Yet commerce should be as direct as possible. To this end it is desirable that the greatest number of commodities for which productive facilities exist, should be produced in the same community.

4. The general law of exchange is _value for value_. This will be obvious if we recur to one of our statements concerning the nature of value, namely, that is the quantity of one commodity that may be equitably exchanged for a given quantity of another. It will be still more obvious if we recall the complete definition: value is our estimate of the sacrifice requisite to secure possession of a desired object. Thus, if it require the labor of one day to produce a pair of shoes, and the labor also of a day to produce three bushels of oats, then the rule of exchange would be three bushels of oats for a pair of shoes, because the required labor in the one case is precisely equal to that in the other.

This is the fundamental law, but it is modified in its operation by certain other facts and principles. Chief among these is the law of _supply and demand_. By supply is meant the quantity of any commodity which is in the market. Demand signifies the quantity which is desired at a given price. The definitions are sometimes erroneously given of supply as the quantity which exists, and demand as the quantity desired. But a man may offer for sale a load of wheat, provided the price is a dollar a bushel, but withdraw it from the market if the price is but ninety cents. A thousand people in a certain town may desire diamond necklaces, but not half a dozen may be able to purchase them. Hence supply is all that is offered in the market; and demand is desire with ability to purchase.

Demand and supply affect prices in this way. Suppose a community has been exclusively using wood for fuel, and their wood can be had at a certain price. After a time a coal mine is discovered in the vicinity, and coal can be furnished much cheaper than wood. This would lessen the demand for wood. As there would be the same amount for sale as before, the seller would be in competition, and the price would fall. So if for any reason before the discovery of the coal the supply of wood had been diminished one half, the demand being the same, the price would rise. Thus we have the general principle that other things being equal, the greater the supply, the less the price; the smaller the supply, the greater the price; the greater the demand, the greater the price; and the smaller the demand, the less the price. In other words, the price varies directly as the demand, and inversely as the supply. In general price varies as the cost of production plus or minus the effect of supply and demand. These principles are affected again in many ways which we can not here explain. Yet the variations are always temporary, and the price or market value always tends to seek the level of cost of production.

5. Trade has been spoken of as an agent of exchange. An _instrument_ also is needed. The primitive method of exchange was by barter. That is, by giving the commodity one produces for that which one desires to possess. But this was early found inconvenient. The man who made shoes and wished to exchange some of them for a coat, would not readily find a coat-maker in want of shoes; or if he should, the latter very likely would not want just so many pairs of shoes as would be equal in value to the coat. All other exchanges might be at a similar disadvantage. What is needed is a commodity which will be a _medium_ of exchange—which every one will be willing to receive for any commodity which he has for sale, and which will command anything which he wishes to buy. Such a commodity is usually the main element in the machinery of exchange, and is what constitutes _money_.

This instrument in order to meet the want, it is generally believed, must have the following characteristics: 1. Value in the material of which it is made. 2. Uniformity of value throughout the world. 3. Much value in small bulk. 4. Approximate constancy of value. 5. Not readily destructible. 6. Divisibility into small portions which are capable of being reunited. 7. Of universal use. 8. Capable of receiving stamps and marks. Most of these properties are found in gold and silver, if not to such an extent as has been claimed for them, at least so far that they have been the basis of the money of the civilized world.

6. But supplementing in a certain way, and representing these, the instrument of exchange comprises also the large element of _credit_. This consists chiefly of book accounts, promissory notes, bank notes, government notes, bank deposits, checks, drafts, bills of exchange, stocks and bonds. One of the great agencies in modern commerce by which credit is made effectual as a part of the mechanism of exchange is that of _banks_. Banks are institutions which serve to abbreviate and facilitate the business of exchange and to extend and render available the credit of the community.

There are four kinds of banks, namely: savings banks, banks of deposit, banks of circulation and issue, and banks of discount. In our modern banking system the last three are generally found in combination, that is, each bank exercises all the functions implied.

A savings bank is an institution in which small sums of money are deposited from time to time as they accumulate in the hands of persons of moderate incomes. The depositors are credited with these amounts, and receive a certain, usually not very large, rate of interest in any case, and an additional amount contingently. The bank loans the money thus deposited in large sums to trustworthy persons who can furnish good security, the rate of interest being somewhat higher than that paid to the depositor.

The benefit of such an institution is two fold. In the first place there are many persons who have small sums of money which they desire to be earning something in some safe place. The amount is too small to be loaned to advantage. Such persons are not likely to know how, even if the sums at their disposal were sufficient, to find the best investment, or to determine concerning the security offered. But put into the hands of men who make this their business, under rules devised by the best financial talent of the community, and who can combine these small sums and invest them to the best advantage, it is made both safe and profitable for the small capitalists.

In the second place there are many persons who wish to unite their labor and skill with capital in some productive enterprise, and having no capital of their own, desire to borrow. They do not know the persons who have money to loan. The savings bank affords them an opportunity and gives them an advantage which they would not otherwise have. It is a benefit first to those who have some surplus, but are unable to loan it to advantage; secondly to those who are in want of capital, but do not know where to find it.

A _bank of deposit_ grows out of the necessities of commerce in a community where much business is transacted. All persons engaged in trade will find from time to time large or smaller accumulations of money in their hands which it is not safe without considerable expense, to keep by them. Hence the custom of depositing these for safe keeping in the bank. Usually no interest is paid as the money may be withdrawn any time at the will of the depositor. It was early found that only a small proportion of these deposits were likely to be withdrawn at any one time; hence a considerable proportion of them could be loaned on short time, and thus the bank would in this way receive compensation for its care, without expense to the depositors. In this way, too, the capital of the community could be kept more fully employed.

But the credit factor in the deposit system soon came to have a much wider scope than is here indicated. Instead of each depositor going to the bank and drawing his money as he needs it, he now gives an order or _check_ on the bank to any man to whom he may have occasion to make a payment. In many cases the receiver of such a check also has deposits at the same bank. In such a case he sends in the check to be deposited with his cash for the day. The amount is debited to the drawer of the check, and credited to the depositor of it, and thus by a simple _transfer_ of _credit_ much business is done without the intervention of any money. This expands into a great and complicated system of exchange between individuals doing business at different banks, by banks in different cities, and by traders in remote nations. Goods are sold in one locality and paid for in the goods of another locality by means of drafts, bills of exchange, etc., meeting and canceling one another, so that very little money is transferred from point to point.