ividual long
outlived the theory on which it rested. It underlies the entire teaching
of the Manchester school. Its spirit was absorbed, as we shall see, by
many of the Utilitarians. It operated, though in diminishing force,
throughout the nineteenth century; and it is strongly held by
contemporary Liberals like M. Faguet, who frankly abrogate its
speculative foundations and rest their case on social utility. Its
strength is, in effect, not in its logical principles, but in the
compactness and consistency which it gives to a view of the functions of
the State which responds to certain needs of modern society. As long as
those needs were uppermost, the theory was of living value. In
proportion as they have been satisfied and other needs have emerged, the
requirement has arisen for a fuller and sounder principle.

But there was another side to the theory of nature which we must not
ignore. If in this theory government is the marplot and authority the
source of oppression and stagnation, where are the springs of progress
and civilization? Clearly, in the action of individuals. The more the
individual receives free scope for the play of his faculties, the more
rapidly will society as a whole advance. There are here the elements of
an important truth, but what is the implication? If the individual is
free, any two individuals, each pursuing his own ends, may find
themselves in conflict. It was, in fact, the possibility of such
conflict which was recognized by our theory as the origin and foundation
of society. Men had to agree to some measure of mutual restraint in
order that their liberty might be effective. But in the course of the
eighteenth century, and particularly in the economic sphere, there arose
a view that the conflict of wills is based on misunderstanding and
ignorance, and that its mischiefs are accentuated by governmental
repression. At bottom there is a natural harmony of interests. Maintain
external order, suppress violence, assure men in the possession of their
property, and enforce the fulfilment of contracts, and the rest will go
of itself. Each man will be guided by self-interest, but interest will
lead him along the lines of greatest productivity. If all artificial
barriers are removed, he will find the occupation which best suits his
capacities, and this will be the occupation in which he will be most
productive, and therefore, socially, most valuable. He will have to sell
his goods to a willing purchas