Whatareeconomicinstitutionsbutaproductofhumanfeelingsandthought，ofhumanactions，humancustomsandhumanlaws？Andjustthiscausesustoapplythestandardofjusticetotheirresults，justthismakesusinquirewhethertheyandtheireffectsarejustorunjust。Wedonotrequirethedistributionofincomesorwealthtobejustabsolutely；wedonotrequireitoftechnicaleconomicactswhichdonotconcernothers；butwedorequirethenumerouseconomicactswhichonthebasisofbarteranddivisionoflaborconcernothersandentirecommunitiestobejust。
Wheresuchactscomeintoconsiderationourobservationsdiscernmoralcommunities，theircommonaimsandthehumanqualities，whichareconnectedwiththeseaims。
Themostprimitivebarterisimpossible，unless。betweenthepartiespractisingitregularly，acertainmoralunderstandingexists。Theremusthavebeenanexpressorsilentmutualagreementtopreservepeace。Thebarterersmusthavecommonconceptionsofvalue，mustrecognizeacommonlaw。Everysellerformswiththepurchaser，whostandsbeforehimatthemomentofthetransaction，amoralunionofconfidence。
Inepochsofprimitiveculture，inthesocialcommunitiesoffamilies，ofkinship，oftribes，ofleagues，thereexistsanuncommonlystrongfeelingofsolidaritywhichthereforeleadstoveryfar—reachingdemandsofjusticewithinthesecircles，aswellastoacompleteobtusenessofthesamefeelingbeyondthem。
Withahigherdegreeofculturethesesmallcommunitieslose，theindividualandthegreatercommunitiesgaininimportance。Nowtheindividualandnowthecommunityappearsmoreintheforeground，andaccordinglytheconsciousnessofthecommunityofinterestswillchangeinintensity。Intheperiodsinwhichtheindividual’sorthefamily’stechnicaleconomiclifestillforms，withoutmoreextensiveintercourse，withoutmoreelaboratedivisionoflabor，thecentreofgravityineconomics，thefeelingofcommunityineconomicmatterswillrecede。Thefurtherthedivisionoflaborprogresses，themoreinextricablywillthethreadsofintercourseinvolvetheindividualinaninsolublesocialcommunity，themorethewholeproductionwillassumethecharacterofageneral，notanindividualconcern。Thenthecommonfunctionsofthelocalandthenationalcommunitywillthrive，individualswillbemoreandmoredislodgedbysocialleaders。Everylargerundertaking，wheneveritunitescontinuouslyacertainnumberofmenforacommoneconomicpurpose，revealsitselfasamoralcommunity。Itgovernstheexternalandinternallifeofallparticipants，determinestheirresidence，school，divisionoftime，familylife，toacertaindegreetheirmentalhorizon，educationandpleasure。Therelationsofthoseconcernednecessarilyexchangeamerelyeconomicforagenerallymoralcharacter。Andtherefromtheconceptionarises；hereacommonproductionexists，henceamoralcommunity。Andthatleadstothequestion：Istherelationbetweentheparticipants，isthedivisionoftheproductsajustone？Andsimilarconsiderationsfollowforwholeindustries，forwholesocialclasses，andthisallthemore；themorefrequentlytheemployersandthelaborersareorganizedintoassociationsandsocieties。TheyalsoresultforwholeStatesandunionsofStates。
Themoralcommunities，whichplayapartineconomics，followsometimespurelyeconomicpurposes，sometimesotherpurposes，asabovealldolocalcommunitiesandtheState。Thenarrowertheircircle，thesimplerandclearertheirpurpose，themoreevidentbecomethequalities，accordingtowhichmoraljudgmentcomparesandclassifiesmen。Themorecomprehensivetheyare，themoremanifoldtheirpurposes，themorecomplicatedbecomesthequestionwhichqualitiesareconcerned，themorefluctuatingbecomesthejudgmentofwhatisjust，themoreindispensableforcustomsandlawsbecomeconventionalpresumptionsandstandardsinordertoattainsomethingdefiniteatall。
Intimesofprimitiveculture，inthesmallcirclesofeconomicandmoralcommunitiesallmen，oratleastallmenabletobeararms，mayreadilyappearequal，andsoitthereappearsjusttogiveeachthesameallotmentofland，thesameshareofbooty。Theguildsoughttosecuretoeachmemberasnearlyaspossibleanequalshareofprofit。Withhigherculturebeginsthenecessarydiscrimination。Formerlythegreaterallotmentswereoftengiventothebravestsoldierandtothenoblefamilies，distinctionsnowbecomemoregeneral。Allinheritedpreferenceisconsideredjust，inthemeasureinwhichpublicsentimentvaluesnotthequalitiesofthesingleindividual，butoffamiliesasawhole，aconceptionwhichdecreasesmoreandmorewithhigherculture。Inheritedwealth，aslongasitappearsnecessarilyandobviouslycoupledwithitspossessor，isundersomeconditionsregardedasajuststandardofthedistributionofgoods。Sothedistributionofpubliclandsaccordingtothepossessionsincattleandrealestateappearedquitejusttomanyadaylaborerand\"kossaeth\"intheeasternprovincesofPrussia，whiletoonewhoknewthepubliclandsystemsinFranceorsouthernGermanyitseemedanoutrageousinjustice。
Forallcommunityofproduction，laboristhemostobviousstandard；henceperhapsitisthemostusual，mostgenerallycomprehensible。Assoonasitbecomesnecessarytocomparemanydifferentkindsoflabor，onlyanabstractiontotallyforeigntopublicsentimentwillconceivetheideaofreducingallthislabortomerequantitiesofhandiwork；naturalpublicsentimentwillsimplyvaluemorehighlythelaborwhichrequiresmoreeducationortalent。
Thosequalitieswillalwaysbemosthighlyconsideredwhichservethecommonobjects；thosewhichonlyrelatetotheindividualandhisselfishaimsarelessesteemed。Onlyacompletemisconceptionthereforecouldestablishindividualneedsasastandardofdistributingjustice。Oldersocialismwiselyheldaloofatalltimesfromthisaberration。Eventhefirstreallysocial—democraticplatforminGermany，thatofEisenachof1869，didnotvetventuretocommitsuchafolly。TheprogressivevictoryofvulgarityandrudenessfirstdemandedintheGothaplatformof1875thedivisionoftheaggregatelaborproductsamongindividualsaccordingtotheir\"reasonableneeds。\"Theprovisoofreasonablenesswasintendedtopreventexcesses；itdoesnotremovethelowconception。Withhisneedsamanserveshimselfonly；withhislabor，hisvirtue，hisaccomplishments，heserves，mankind，andthesedeterminethejudgmentwhichesteemsthemasjust。
Whenthegreatsocialcommunitieswhichfollowthemostvariousinterestsandwhatisjustinthemareconcerned，theattemptwillalwaysbemade，moreorless，toweighthedifferentqualitiesandaccomplishmentsofmenintheirresultandintheirconnectionwiththeobjectsofthecommunity。Talentsandknowledge，virtuesandaccomplishments，meritinshortisconsidered。Moralqualitiesareoftenapparentlyoverlooked，greattalentswhoseachievementsanddeedsaregenerallyvisibleareapparentlyover—estimated。Butonlybecauseoneismorenoticedthantheother，andthemoraljudgmentwhichvaluesindividualsaccordingtowhattheyaretothewholecannaturallyonlyjudgebywhatitsees。
Andthereinliesthecontrastbetweenmoralandeconomicvalue。Intheordinaryeconomicvaluationactivitiesandproductshavevalueinthesamemeasure，asindividualscovetthemforthesatisfactionoftheirpersonalneeds。Inthemoralvaluation，onwhichthejudgmentastojusticedepends，theactivitiesofindividualsreceivetheirvalue，accordingastheyservetheinherentendsofthewhole。Truejustice，saysIhering，isabalancingbetweenconsequencesandacts，whichisweighedequallytoallcitizensaccordingtothemeasureofthevalueoftheseactstosociety。Bothvaluationsgoinlifesidebyside，combatingandinfluencingoneanother。Theonerulesthemarket，theothermoraljudgmentsandconceptions。Theyapproacheachotherasmankindgrowsmoreperfect。Throughwhatmechanismthearisingconflictsarelessenedandmitigated，westillhavetodiscuss。
IV
Ifintheeconomicorderwecouldrecognizeonlytherulingofblindforces，ofselfishinterests，naturalmassesandmechanicalprocesses，itwouldbeaconstantbattle，achaoticanarchy；itwouldpresentthe\"bellumomniumcontraomnes。\"Thatthisisnotthecasewasperceivedbythosewhosawintheexertionofegoismtheonlymotiveforceofeconomiclife；theyhelpedthemselvesovertheinexplicableconclusionthatoutoftheblindstruggleofselfishindividualspeacefulsocietyshouldgrowout，withtheidealconceptionofapre—establishedharmonyofforcesasintheconceptionofLeibnitz。Andyetanyimpartialglanceatlifetellsusthatthisharmonydoesnotexist，butthatitisstrivenforslowlyandgradually。
No，harmonydoesnotexistperse；selfishimpulsescombateachother，naturalmassestendtodestroyeachother，themechanicalactionofnaturalforcesinterferesrelentlesslystillto—day；thestruggleforexistenceisto—daystillcarriedoninthestruggleofcompetition；thebuoyancyofindividualactivityhasevenwiththenoblestandmostdistinguishedmenaflavorofegoism；withthemassesitis，inwardlycurbedindeedbythemoralresultsofsociallife，thepotentcauseofmostactions。
Whilestruggleandstrifeneverceasetheydonotpreservethesamecharacterthroughoutthecourseofhistory。Thestrugglewhichendedinannihilation，insubjugation，turnsintoapeacefulcontestwhichisdecidedbyanumpire。Theformsofdependencegrowmilderandmorehuman。Classgovernmentgrowsmoremoderate。Everybrutalstrength，everyundueassertionofsuperiorforceismadepunishablebylaw。Demandandsupply，astheyconfronteachotherinthedifferentsystemsofcustomandlaw，arequitedifferentintheirresult。Inshortallemanationsofegoismaremoderated，regulatedandrestrainedbythemoralcultivationofthelaborofmanythousandyears。Thatthisissoisthesimpleconsequenceofthoseidealconceptionswhichoriginateinsociallife，formthecentreofallreligions，allsystemsofsocialethics，allmoralsandalllaw。Andintherealmoftheseidealconceptionstheideaofjustice，ifnotthefirstandonlypower，isnonethelessoneofthemostimportant。
Othersofequalmightaregroupedwithit。AsidefromtheideaofGod，ofimmortality，ofperfectionandofprogress，theideaofjusticewhichgiveseachonehisshare，isconfrontedinthefieldofsocialpolicybysomeotherideas。Theseareinthefirstplacetheideaofcommunity；whichallotstothewholethatwhichbelongstoit，whichregardsthepromotionofthewholemorethantherightsoftheparts；inthesecundplacetheideaofbenevolence，whichinitsconsciousnessofcommunitygivesmoretothepoormanthanhecanjustlydemand；finally，theideaofliberty，whichpermitseachparttoactfreely，placingnumerouslimitsuponjusticeandthecommunity。Thatthisresultsinmanyrestrictionsupontheexerciseofjusticewewillhereonlysuggest，notdemonstrate。Butthefactalwaysremainsthattheconstantlygrowinganddevelopingconceptionsofjusticeextendtheirinfluencedailyandhourlyintotheactivityofpracticallife，thatintheformofmoralandreligioussenseofduty，socialcustomandactuallaw，theyregulateandmodifyrudeforcesandselfishimpulses。Theconflictbetweeninterestandmoralideaswillofcoursenevercease，butonlybemoderated。
Allhumanlifeonlyexistsunderthepresumptionofthisneverceasinginternalcombat。Therearealwaysclaimsofeconomicjusticewhichappeartobeonlyboldidealdreams；buttherearealwaysmanywhichhaveconqueredinlife，oratleasthaveobtainedforthemselvesthemajorities，theleadingpowers。Andtothemthemorerefinedeconomiccultureowesitshumanecharacter。
Practicallythemostimportantforminwhichtheseideasconqueristhatofcustomandoflaw。Withouttheseformalmeanstheconceptionsandjudgmentsofjusticecannoteasilyberealized，cannoteasilybetransmittedfromgenerationtogeneration。Customandlawlendpermanenceandstabilitytoideasofmorality，andeffecttheagreementofmenaboutthatwhichoughttobe。Fromthemoraldispositionofmenariserulesofcustom，whichasdistinctrulesoflifecurbthewildplayofpassionsandimpulses。Customisthatwhichweregularlypractice，originatinginexperienceandrecollection，inthejudiciousconceptionofcommonpurposeandinmoralreflection。
Ascrudeascustommay。originallybe，itsruleisalwaysanimprovementincomparisonwiththepurelynaturalplayofinstincts。Itappearstothegrowinggenerationtheappropriate，necessary，justandobviousconditionofallintercourse，alldivisionoflabor，allsocialexistence。Asanindependentpoweritconfrontstheindividualsandtheirimpulsesandbecomesthefoundationofallmorals，allreligion，aswellasallrightsandallinstitutions。
Originallyinflexibleandrelentlessinitselfcustomlaterbecomesmorevariableinindividualmorality，adaptsitselftoconditions，thoughitstillexactsthemorenobleandsublime；inthepositivelaw，whichisgraduallyseparatedfromcustom，itbecomesarule，demandingless，butforthis\"less\"amuchstricterobedience。Custominhigherstagesofcultureonlyprevailsthroughfearofreproach，ofcontempt，ofsocialostracism。Formallawonlychoosestherulesofsociallifemostimportantforcommoninterest，butenforcestheirobservation，whennecessary，throughthephysicalcompulsionwhichthewholecanexerciseovertheindividual。
Internallyofthesamenatureasmoralsandcustom，i。e。，originatingequallyinsocialidealsandprimarilyintheideaofjustice，thelawadoptsthroughitsexternal，formalnaturethecharacterofsomethingindependent，inconsequenceofwhichindependencethelawcanonlyupholdjusticewithinitsownrangeandcanonlyexecuteitinacertainsense。
Totheessenceofrightandlaw，asithasbeenevolvedfromreligion，moralsandcustomsbyanexperienceofmanythousandyears，belongsabovealltheuniformandsureexecutionoftheruleswhichhaveoncebeenconfirmeduniversallyanduniformly。
Withoutuniformapplication，withoutasureadministration，lawdoesnotremainlaw。Toachievethisisextraordinarydifficult，onaccountofthemanifoldcomplexityoflife。Thegoalwecanonlyreachbylimitingourselvestothatwhichisofthemostimportanceandbylong，laborious，logicalbrain—work，whichreducestherulesoflawtoafewclearanduniversallyintelligiblesentences。Theexerciseofthejudicialpowerisraisedbythisqualityabovethelevelofpersonalfeelingsandchangingdisposition，lawsareguidedbyittoasafeanduniformapplication。Themoreseverelylawinterferes，subordinatesdetails，proceedsradicallyandrelentlessly，themoreimportantthisformalcriteriongrows。Theuniformandjustapplicationoflawbecomessoimportantthattheimperfectlawwhosejustapplicationissecuredispreferredtothemoreperfectandmateriallymorejustlawwhoseapplicationvaries，becomesuncertainandthusunjusteverywhereorinthehandsofjudgesandofficialsofto—day。Nearly。allpositivelaw，therefore，andespeciallywrittenlaw；whichthethinkingmindgeneratesbythemachineryoflegislation，whichhasnotascustomarylawbeenderivedfromuse，isinflexible，feeble，confinedtooutward，clearlyvisiblemarks；itcannotregardindividualitiesandtheirnatures，itdealswithroughaverages。Insteadoftestingindividuals，forexample，itdividesadultsandminorsaccordingtoafixedage，approximatelycorrectforthetotality，butmoreorlessarbitraryinregardtotheindividual。Itcallsalladultmentothepolls，notbecausetheyarereallyofequalimportancetothecommonwealth，butbecausetheapplicationofeverymorecomplicateddistinctionwouldresultpracticallyingreaterinjustices。Thuslawbecomesofteninequitableandmateriallyunjust，notbecauseformaljusticeissuperior，butbecauseitismoreeasilyattainedintheexistingstageofcivilization。Thisgivesrisetothousandsofconflictsbetweenmaterialandformal—justice，whicharesooftendecisiveforthepracticalquestionsofdistributionofwealthandincomes。
Ifthereisanydemandofjusticewhichitisdesiredtointroduceintoourinstitutionsthroughthechannelofordinaryreformbypositivelaw，itisnotonlynecessarythatthedemandberecognizedanddesiredbythebestasright，thatitmusthavebecomecustomincertainplaces，thatitmusthaveovercometheresistingpowersofegoism，oflistlessindolencewhichclingstotradition，thatitshouldhavetriumphedovertheeventualobstructionoftheotherethicalideas，whichtendingtowardothergoals，oftenmaybeanobstacle，thatitshouldhavebecomeadogmaofrulingpartiesandstatesmen。No，itmustalsohaveevolvedthequalitiesofapracticableformallaw，itmusthavereachedfixedboundaries，clearcharacteristics，determinedqualitiesandproportions；itmusthavetraversedthelongjourneyfromaconceptionofrighttoaclearlydefinedandlimitedprovisionoflaw，thefundamentaljudgmentsofvaluemustbecondensedtoafixedconventionalscale，which，asasimpleexpressionofcomplicatedandmanifoldconditionsstillgraspstheiraveragejustly。Inshortthemechanismofpositivelawlimitseveryexecutionofmaterialjustice。Wehaveourformalrightonlyattheexpenseofapartialmaterialinjustice。
Ademandofjusticeinrewardinggreatinventorscanto—dayonlybecomepositivelawinpatentlegislation，orinthepublicarrangementofasystemofpremiums，inwhichthemethodofexecutionisjustasimportantastheprinciple。Ademandofjusticeinregardtoaprogressiveincometaxcancountuponsympathyonlywhenthedemandisbasedondefinitefigureswhichcorrespondtotheaveragefeelingofrightofto—day。Thedemandofjusticethattheemployershouldprovidebetterforhislaborersbecomespracticable，whenwedemandindetailanddefinitelythattheemployercarrythisorthatresponsibilityforaccidents，thatheputsuchandsuchacontributionintothebenefitfund，thatheaccepttheverdictofumpireswithregardtowages。Thatthelaborersshouldshareintheprofitsoftheenterprisecanbediscussedasalegalmeasureonlywhendefiniteexperienceshowsthepossibilityofajustexecution。Otherwisesuchalaw，likemanyotherwell—meantpropositionsfortheimprovementoftheconditionofthelowerclasses，would，inconsequenceoftheviolationofformaljustice，leadtoarbitrariness，tofavoritism，tothediscontentoftheclassesconcerned。Thisisconfirmedbyalldeeperknowledgeoftheresultsoftheadministrationofourpoorlaws。ThepoorlawisthemostimportantpieceofsocialismwhichtheGermansocialorganizationcontains。Itisapieceofsocialismwhichwecouldnotspareforthetimebeing，becausewedonotknowabettersubstitute，noryethowtomeetotherwisebymoreperfectinstitutionistheinevitabledemandofjustice，thateveryfellow—beingbeprotectedfromstarvation。Thedrawbackofthispoorlawistheabsoluteimpossibilityofenforcingitinaformallyandmateriallyjustway。Arbitrariness，chance，redtapegovernit，andthereforetheassistancegivenhasinmanycasessuchunfavorablepsychologicaleffects，leadingtolazinessandindifference。Aslongastheorgansoftheadministrationdonotreachafarhigherperfection，aslongastheformalpossibilitiesofexecutionarenotquitedifferent，mostsocialisticexperimentswouldonlyextendtheconsequencesofourpoorlawstolargeareasofoursocialandeconomicorganization。
Butwemustneverforgetthedistinctionbetweenmeansandends。Theformofthelawisthemeans，justice，however，theend。Wemayperceivethatlawscannotdoawaywitheveryimmorality，cannoteffectastrictlyjustdistributionofincomes；thattheingenioustricksofastuteandselfishbusinessmenfloutalldecency，andfindwaystoslipthroughthemeshesofthebestlaws。Butthismustnotrestrainusfromworkingforjustice，andfromfaithinitsvictory。Althoughthousandsofinjusticesareboundtooccurinourlife，ourbestpossessionrestsontheideaofjustice。Allsocialprogressdependsonfurthervictoriesofjustice。Bydemandingajustdistributionofincomes，socialismhasintroducednothingnew，buthasincontrasttotheerrorswhichwerecreatedbymaterialisticepigonesinashortperiodofso—calledphilosophyofenlightenment，onlyreturnedtothegreattraditionsofallidealisticsocialphilosophy。Theerrorofsocialismwassimplythatitoverlookedthedifferencebetweenmaterialandformaljustice，aswellasthesignificanceofotherequallyjustifiedsocialidealconceptions；thatitimaginedtheindividualconceptionsofcertainidealistsofwhatisjust，wouldsufficetooverthrowsuddenlyandimmediatelyprimevalinstitutions。Withitscrudeexcrescencesitreturnedtostandardsofjusticewhichperhapscorrespondtothefirststagesofcivilization，certainlytoroughviews，butnottorefinedconceptionsofhighermorality。
Socialismcanteachusnottodemandafalsejustice；itshouldneverhinderusfromfightingforatruejustice。Historytellsusthatprogresshasusuallybeentedious；itshowsusjustasmuchthatatlengththegreatestformaldifficultieshavebeenovercome；thatespeciallyinthegreatepochsoffaithinidealswhichrejuvenateandennoblemen，thejusterright，therefinedmoralshavetriumphedoverthepowersofegoism，ofsluggishness，ofstupidity，andnowbetterandjusterinstitutionshavegrownup。Therewasatimewhenthedemandforajustsystemoftrade，whichisuniversallyconcededto—day，appearedasanidealfarinadvanceofthetimes。Robberies，thefts，frauds，brawlsinthemarket—places，extortionsofgiftsweretheolderformsoftransferringproperty。Hereathousandyears’workincivilizationhasdeveloped，inconnectionwiththeprogressofreinedconceptionsofjustice，theinstitutionsoflaw，whichto—daygovernandbindallintercourseasamatterofcourse。
Theleadingconceptionsinthisworkofcivilizationinthepastandpresentdonaturallynotrelatetothewholesocietyandallitspurposes，nortoallqualitiesofmen。Ineveryordinarybartertwopersons，whoseotherqualitiesarenotconcededinthisrelation，whichisconfinedtothisonebarter，meetwiththepurposeofadvancingtheirmutualinterestsbytheexchangeofcertaingoods。Thisresultisreachediftheyexchangevaluesessentiallyequal，ifbothsidesmakeequalprofits。\"Thegivingandthetaking，\"Herbartsays，\"everywherepresupposescompensation，i。e。，equalityofthegivenandthetaken。\"
Concedingthestandardsofequalityonly，cantherebeanydissent。Thesavageseesequalityinpurelyexternalcircumstances，inthefactthatthefursjustfillthekettleforwhichhetradesthem。Thecivilizedmanasksforequalityofmoneyvalue，theformalistfortheequalabsenceoffraud，forceanderror。Theprinciplehowever，alwaysremainsthesame。
Equalitymeasuredinsomewayisrequired。Andiftheequalityofbothsidesrequiredbytheconventionalstandardexists，justiceissecuredbecausethelogicaljudgmentandthemoraltestdoesnotbringthesingleagreementintorelationwiththetotaldistributionofincomes，withthetotalworthinessofthepersons。Onlyafoolcouldrequireasademandofjustice，thatthegrocergradethepriceofapoundofcoffeeaccordingtothewealthofeachcustomer，orthatinapublishingcontractthepublishershouldpaytotheauthorofanunsalablescientificbookalargesumbecauseitisaworkofgreatlaborandskill。
Thejusticeofasinglebargainistheso—calledexchangingjustice，asTrendelenburginhisadmirableessaysonAristotlehasprovedtobetherealmeaningofthegreatStagaryte。Thisexchangingjusticeisneverthelessnotinstrictcontrasttodistributivejustice；itisonlyoneofitssubdivisions，whichconcertsnotthewholesocietyandallitspurposes，butsimplyapartofthemandanespecialpurpose。
Aslongasthevalueofeverygoodthingisadifferentoneforeachman，solongacertaininequalityofprofitswillnotseemunjust。Onlywhenthisequalityoverstepscertainbounds，whenitscauseisnotthefreedecisionofafreeman，doesalivelyfeelingofinjusticeariseandseekalegalremedy。Forthousandsofyearstheselfishimpulsesofthosewhointhesocialstruggleofcompetitionarethestronger；havedemandedunconditionalfreedomofcontract；andthisdemandisalwaysopposedbypublicconscienceandthedemandoftheweaker，whichestablishestheconceptionofjustumpretium，whichrequiresagovernmentalregulationofprices，statutesonusury，considerationforthe\"laesioenormis，\"publiccontrolofabusesintradeandtraffic，arestrictionofexploitation。Thisrequirementdisappearsonlywhentworealequalsmeet，whoasarulederiveequalbenefitfromtheircommercialrelations。
TheoldereconomicschoolofAdamSmith，aswesuggestedinourintroduction，hadfounditsidealofjusticeexclusivelyinthefreedomofcontracts。Presumingthatallmenarebynatureequal，itdemandedonlyfreedomfortheseequalmen，inthehopethatthiswouldresultinagreementsaboutequalvalueswithequalprofitsforbothparties。Itknewneitherthesocialclassesnorthesocialinstitutionsintheirsignificanceforeconomiclife；foritthesocialmechanismwascomposedexclusivelyoftheactivityofindividualsandtheirsingleagreements。Andthereforeitcouldnotdemandanyotherkindofjustice。Thiswasnotwrong，butitwasonlyapartofthe\"just\"
whichitdemanded。
Wedemandto—dayaboveall，besidesajustsystemofbarter，justeconomicinstitutions，i。e。，wedemandthatthecomplexesofrulesofmoralsandrightwhichgoverngroupsofmenwholiveandworktogethershouldharmonizeintheirresultswiththoseidealconceptionsofjusticewhichonthebasisofourmoralandreligiousconceptionsareprevalentto—day，orwhicharegainingrecognition。Wedonotacknowledgeanyoneoftheseinstitutionstobeabovehistory，ashavingalwaysexistedorasnecessityeverlasting。Wetesttheresultofeveryoneofthem，andaskofeach：Howdiditoriginate，whatconceptionsofjusticehavegeneratedit，whatnecessityexistsforitto—day？
Tobesurewealsoknowhowtoappreciatethevalueoftheinstitutionstransmittedtous，weknowthatthesacredtraditionsofthepastfillourmindwithawe，thateventheformoftraditionallawhasarestrainingeffectonroughcharacters，thatalastingconditionofsocialpeaceisbasedonthegreatestpossiblerestrictionofformalbreachoflaw。Weadmitthatinstitutionsmustneverdisappearinformandsubstance，thatnationscannevercreateanythingwhollynew，butmustalwaysbuildonwhatexists。Inthislastingcontinuityofthewholewehaveaguaranteethatthestruggleforthatwhichisgoodandjustwillnotexpirefruitlessly；thoughthiswouldalwayshappen，ifeachgenerationhadtobeginthisstruggleanew，andwasnotfurnishedwiththeinheritanceoftriedwisdomandjustice，containedintraditionalinstitutions。Weadmitthateverymomentaryconditionofpeaceinsociety，asitispreservedbyanexistinglawofproperty，inheritanceandsomeotherinstitutions，ismorevaluablethanadangerouslyunsettlingwarforajusterlawofpropertyandinheritance，whenthetraditionallawstillcorrespondstotheequilibriumoftheforcesexistinginsocietyandtotheprevalentidealconceptions。Inthiscaseeverystruggleformorejustlawsisforthetimebeinghopelessandvain。Itcanonlyharmanddestroy。Eventhemostviolentrevolutioncannotreplacethementaltransformationofmenwhichisthepreconditionofajusterlaw。Theessentialpointisalwaysthattheforcesthemselvesandtheconceptionsofjusticehavechanged。Thenonlycanastrugglesucceed。
Becausethiswillalwaysbe，wedonotfear，likethealarmistsandthepusillanimousofalltimes，everystruggleforjusterlaws。Andonthisaccountwedonotseeineverymanifestationoftheself—esteemofthelowerclassesasimplyoutrageousrevoltagainstthedoctrineofthenaturalaristocraticorganizationofsociety。Muchlessshouldwefallintothemistakeofallagedreformerswho，becausetheyhaveachievedsomething，believethattheworld’shistoryshouldclosewiththemandwhattheyhaveaccomplished。Weknowto—daythathistoryneverstandsstill，thatallprogressofhistoryisgainedonlyinthestruggleofpeoplesandofsocialclasses，andthattheycannotalwaysbeaspeacefulasinanursery。Andthosewhoarealwaysreadytodreamofajollywaranditsfavorablemoralconsequencesshouldnotforgetthatthesocialstruggleswithinsocietydifferfromwarsbetweennationsonlyindegree，notinkind。Socialstrugglescanlikewisefavorablyaffectpeoples。Ionlycallattentiontothestrugglesbetweentheplebeiansandthepatricians。Therecanbenoprogressininstitutionswithoutcertainsocialstruggles。Allstruggleswithinsocietyarestrugglesforinstitutions，andthatfortheprogressofcultivationtheindividualwillgrowenthusiastic，willevensacrificehislifeforthatforwhichclassesandpartiesfight，issoinevitable，sosalutarythatnowandthenwedonotfindfaultwithbreakingtheformallawinsuchcontests。
ThereisnoworsedelusionthanthatoftheolderEnglisheconomiststhatthereareanumberofsimpleandnaturallegalandeconomicinstitutionswhichhavealwaysbeenastheyareandwillalwaysremainso；thatallprogressofcivilizationandwealthissimplyanindividualortechnicalone；thatthisissimplyaquestionofincreasedproductionorconsumptionwhichwillandcanbeaccomplishedonthebasisofthesamelegalinstitutions。Thisfaithinthestabilityofeconomicinstitutionswastheresultofthenaiveoverweeningconfidenceoftheoldereconomistsintheomnipotenceoftheindividualandoftheindividuallife。Socialismthenhasperhapsover—estimatedthesignificanceofsocialinstitutions。Historicaleconomicsandthemodernphilosophyoflawhavegiventhemtheirduepositionbyshowingusthatthegreatepochsofeconomicprogressareprimarilyconnectedwiththereformofsocialinstitutions。Thegreatmessagesofsalvationtohumanitywereallaimedattheinjusticeofoutworninstitutions；byhigherjusticeandbetterinstitutionshumanityiseducateduptohigherformsoflife。
Aslittleasthesocialinstitutionsofantiquityhavegovernedmodernhistory，ascertainlyasslaveryandserfdomhavevanished，ascertainlyasallpastprogressofinstitutionswasconnectedwithapparentsuccessindistributingwealthandincomesinamorejustwayandinadaptingitmoreandmoretopersonalvirtuesandaccomplishments，ascertainlyasthisincreasedmoreandmoretheactivityofallindividuals，ascertainasall。thisisit，thatthefuturewillalsoseenewimprovementsinthisdirection，thattheinstitutionsofcomingcenturieswillbemorejustthanthoseofto—day。Thedecisiveidealconceptionswillbeinfluencednotexclusivelybutessentiallybydistributivejustice。Institutionswhichgovernwholegroupsofhumanbeingsandtheentiredistributionofwealthandincomesnecessarilycallforthajudgmentupontheirtotaleffects。Inasmuch，indeed，assingleinstitutionsconcernonlysinglemenandsinglephasesoflife，thejusticerequiredwillonlybeapartialone。Naturallythisisalwayseasytoattain。Ajustassessmentoftaxes，ajustdistributionoftheburdensfortheimprovementofhighways，ofthedutyofmilitaryservice，ajustgradationofwagesaremucheasiertoattainthanajustdistributionofthetotalincomesandwealth。Butanendeavortowardstheseendswillnevercease；allpartiallyjustregulationshavesignificanceonlyinasystemofthejustdistributionofthetotal。AndwiththiswefinallycometothequestionwhatcanbeandwhatshouldtheStatedointhismatter？
Inourviewitwillobviouslynotbeabodyconfinedtotheextensionofjusticeincriminallaw，inthejurisdictionuponcontractsandfurther，perhaps，intheassessmentoftaxes，butignoringthejustdistributionofgoods。Whatsenseisthereinwarmingupinthelegislaturesoverthehundredthpartofacent，whichaquartofbeerorayardofclothisraisedinpriceforthepoorman，whenonetakesthestandpointonprinciple，thathiswagesaretoberegardedassomethingindifferentandremotefromallhumanintervention。Ourmoderncivilizedcommonwealthindeedcannotremoveeveryinjustice，becauseprimarilyitoperatesandhastooperatebymeansoflaw。Butitshouldnotthereforebeindifferenttothemoralsentimentsofmenwhoaskforjusticeindistributingwealthandincomesforthegrandtotalofhumansociety。TheStateisthecentreandtheheartinwhichallinstitutionsemptyandunite。Italsohasastrongdirectinfluenceonthedistributionofincomesandwealthasthegreatestemployeroflabor，thegreatestpropertyholder，ortheadministratorofthegreatestundertakings。Aboveallitexercisesaslegislatorandadministratorthegreatestindirectinfluenceonlawandcustom，onallsocialinstitutions；andthisisthedecisivepoint。
Therightmanintherightplace，thegreatstatesmanandreformer，thefar—seeingpartychiefandlegislatorcanhereaccomplishextraordinarythings，notdirectly，notimmediately，butthroughawiseandjusttransformationoftheeconomicinstitutionstheycangreatlyinfluencetheadministrationofincomesandproperty。Ofcourse，thetheorywhichseesonlynaturalprocessesinalleconomiclifeadmitsthisaslittleasthosewhofromthestandpointofcertainclassinterests，fromconvictionofprinciple，orevenfrommereshortsightednessconstantlyrecurtotheimpotencyoftheState。Statesmenofalowerorderalsotalkwitheunuchs’voicesoftheinabilityoftheStatetointerfereanywhere；theymistaketheirownimpotencyforthatoftheState。AlltheseadverseopinionsforgetthattheStateisandmustbetheleadingintelligence，theresponsiblecentreofpublicsentiment，theacmeofexistingmoralandintellectualpowers，andthereforecanattaingreatresultsinthisdirection。
Wedonotdemandthatanyleadingpersonalities，likeahumanomnipotence，shouldcontrol，compare，examineandestimatethequalitiesandachievementsofmillions，andaccordinglydistributeincomesjustly。Thisisaconceptionoffollywhichreasonablesocialistsnowabandon。TheStatecanatalltimeschieflyinfluenceajusterdistributionofincomebymeansofimprovedsocialinstitutions。Onlyinthiswayisitguaranteedagainsthavingitsbestintentionsdestroyedbyathousandfoldformalinjustice。Thetotalofeconomicinstitutionswillalwaysbemoreimportantthantheinsightandintentionofthosewhoforthetimebeinggoverninthecentraladministration，betheythegreatestofmen。Theirwisdomandjusticecanpromoteandreformtheinstitutions，butcannottaketheirplace。Theywillprovethemselvestruebenefactorsofhumanityonlybyfixingthenetresultoftheirlaborsinlastinginstitutions，inincreasingforposteritythegreatcapitaloftraditionaljusticebyreforms；
andthiswillsecureimmortalitytotheirgeniusandtheirwill。
Weareattheendofourinquiry。Whatistheresult？Itisthefactthattheconceptionofjusticegrowsoutofnecessaryprocessesinoursoulandnecessarilyinfluenceseconomiclife。
Theideaofjusticeis，likeothermoralideas，notimpartedtomenbysomerevelation，andjustaslittleisitanarbitraryinvention；itisthenecessaryproductofourmoralintuitionandourlogicalthinking，andinsofaritisaneternaltruth，manifestingitselfevernewyeteversimilarmetamorphoses。Inmanyitworksonlyasavaguefeeling。Inthecourseofhistoryitdevelops，forthemajority，intoclearconceptions，standardsandconclusions。Accordingtothelawsofhisthoughtmanmustunifythemanifoldandthensubjectittouniformstandards。Thesuppositionofmoralcommunitiesinsocietycreatestheconceptionofanearthlyjustice；thesuppositionoftheunityofallthings，thatofdivinejustice。Itisthesamechainofjudgmentsandconclusionswhich，dissatisfiedwiththeimperfectionsofearthlythings，transfersthelastcompensationintoahigherandbetterworld。Theideaofjusticeisthusconnectedwiththehighestandbestthatwethink，imagineandbelieve。
Butasthishighestandlastneverrevealsitselftomankindinitsfullsplendor，asweeternallyseekit，eternallybattleforit，andthougheverprogressing，neverreachit，sotheideaofjusticehasnoresting，determinedexistenceonearth。Asnopenallaw，nojudgeisabsolutelyjust，sonoestablisheddistributionofpropertyandincomesisaltogetherjust。Buteveryconsecutiveepochofmankindhaswonahighermeasureofjusticeinthisfield。Incustom，lawandexistinginstitutionswhichruleeconomiclifewehavetheoutcomeofallthestrugglesforjusticewhichhistoryhasseenformanythousandyears。
Thevalueofourownlife，ofourowntime，doesnotliesomuchinwhatwasattainedbeforeus，asintheamountofstrengthandmoralenergywithwhichwepressforwardinthepathofprogress。Greatcivilizednations，greatepochsandgreatmenarenotthosewhocomfortablyenjoytheirancestralinheritances，whoeat，drinkandincreaseproduction，butthosewhowithgreaterenergythanothersdevotetheirservicestothegreatmoralideasofhumanity；theyarethosewhosucceedinpropagatingmoralideasandinintroducingthemmoredeeplythanhithertointothesphereofegoisticstrugglesforexistence；theyarethosewhoonthefieldofeconomicssucceedinsecuringandcarryingthroughjusterinstitutions。