rise to special institutions (government, defence) in the community. To this first fundamental essay the three succeeding papers (“Wants,” “Goods,” “Economy,” pp. 78–142) are appendices. The treatment of these, the classifications given, the detailed discussion of particular points, e.g., the productivity of labour, and the distinction drawn between economical estimates from the individual or the collective point of view, make up a solid contribution to the science. The fifth essay is an elaborate treatise on the theory of production, treating the agents of production free goods, labour, and capital separately, then the interests of the several parties engaged, and the changes due to variations in the cost of producing. Under “Labour” is given the most complete and systematic discussion of separation of employments. Capital is defined so as to include land, but careful reference is made to the distinctive peculiarities of this form of wealth. Especially remarkable is Hermann's treatment of what he calls Nutz-capital (“service capital”), with regard to which he accepts almost entirely the view of J. B. Say. Under fixed capital a very elaborate treatment of the nature and economic influence of machines is given, while the handling of changes in the cost of production, both here and in the essay on “Profit,” is acute and luminous. The sixth essay analyses the forces which underlie supply and demand. These are stated to be: (a) on the side of the purchaser : (1) his desire for the commodity in question, or its utility to him (2) his means (3) the competition of sellers (b) on the side of the seller : (1) cost of production (2) competition of the buyers (3) the value of the medium of exchange The same considerations are shown to hold good in the case of the price of labour, though unfortunately the seventh essay, on “Wages,” is incomplete. The eighth essay, on “Profit,” discusses very elaborately the rate of return on the various species of capital and the circumstances that determine it, distinguishes interest from profit in general, and marks as a special form the “profit of the entrepreneur” (). This last he regards as distinct from wages of superintendence, and from insurance for risk. The ninth and tenth essays, on “Revenue” and “Consumption,” are perhaps specially interesting from the clear mode in which the theory, afterwards called that of the wages fund, is rejected, and from the precision with which the diverse