Sophisms of the Protectionists — 21 - Capital and Interest Part 3

And here we have a glimpse of one of the finest harmonies in the social world.

I allude to _leisure_: not that leisure that the warlike and tyrannical classes arrange for themselves by the plunder of the workers, but that leisure which is the lawful and innocent fruit of past activity and economy.

In expressing myself thus, I know that I shall shock many received ideas.

But see!

Is not leisure an essential spring in the social machine?

Without it, the world would never have had a Newton, a Pascal, a Fenelon; mankind would have been ignorant of all arts, sciences, and of those wonderful inventions, prepared originally by investigations of mere curiosity; thought would have been inert--man would have made no progress.

On the other hand, if leisure could only be explained by plunder and oppression--if it were a benefit which could only be enjoyed unjustly, and at the expense of others, there would be no middle path between these two evils; either mankind would be reduced to the necessity of stagnating in a vegetable and stationary life, in eternal ignorance, from the absence of wheels to its machine--or else it would have to acquire these wheels at the price of inevitable injustice, and would necessarily present the sad spectacle, in one form or other, of the antique classification of human beings into Masters and Slaves.

I

defy any one to show me, in this case, any other alternative.

We should be compelled to contemplate the Divine plan which governs society, with the regret of thinking that it presents a deplorable chasm.

The stimulus of progress would be forgotten, or, which is worse, this stimulus would be no other than injustice itself.

But, no!

God has not left such a chasm in his work of love.

We must take care not to disregard his wisdom and power; for those whose imperfect meditations cannot explain the lawfulness of leisure, are very much like the astronomer who said, at a certain point in the heavens there ought to exist a planet which will be at last discovered, for without it the celestial world is not harmony, but discord.

Well, I say that, if well understood, the history of my humble plane, although very modest, is sufficient to raise us to the contemplation of one of the most consoling, but least understood, of the social harmonies.

It is not true that we must choose between the denial or the unlawfulness of leisure; thanks to rent and its natural duration, leisure may arise from labor and saving.

It is a pleasing prospect, which every one may have in view; a noble recompense, to which each may aspire.

It makes its appearance in the world; it distributes itself proportionably to the exercise of certain virtues; it opens all the avenues to intelligence; it ennobles, it raises the morals; it spiritualizes the soul of humanity, not only without laying any weight on those of our brethren whose lot in life devotes them to severe labor, but relieving them gradually from the heaviest and most repugnant part of this labor.

It is enough that capitals should be formed, accumulated, multiplied; should be lent on conditions less and less burdensome; that they should descend, penetrate into every social circle, and that, by an admirable progression, after having liberated the lenders, they should hasten the liberation of the borrowers themselves.

For that end, the laws and customs ought to be favorable to economy, the source of capital.

It is enough to say, that the first of all these conditions is, not to alarm, to attack, to deny that which is the stimulus of saving and the reason of its existence--interest.

As long as we see nothing passing from hand to hand, in the character of loan, but _provisions_, _materials_, _instruments_, things indispensable to the productiveness of labor itself, the ideas thus far exhibited will not find many opponents.

Who knows, even, that I may not be reproached for having made great effort to burst what may be said to be an open door.

But as soon as _cash_ makes its appearance as the subject of the transaction (and it is this which appears almost always), immediately a crowd of objections are raised.

Money, it will be said, will not reproduce itself, like your _sack of corn_; it does not assist labor, like your _plane_; it does not afford an immediate satisfaction, like your _house_.

It is incapable, by its nature, of producing interest, of multiplying itself, and the remuneration it demands is a positive extortion.

Who cannot see the sophistry of this?

Who does not see that cash is only a transient form, which men give at the time to other _values_, to real objects of usefulness, for the sole object of facilitating their arrangements?

In the midst of social complications, the man who is in a condition to lend, scarcely ever has the exact thing which the borrower wants.

James, it is true, has a plane; but, perhaps, William wants a saw.

They cannot negotiate; the transaction favorable to both cannot take place, and then what happens?

It happens that James first exchanges his plane for money; he lends the money to William, and William exchanges the money for a saw.

The transaction is no longer a simple one; it is decomposed into two parts, as I explained above in speaking of exchange.

But, for all that, it has not changed its nature; it still contains all the elements of a direct loan.

James has still got rid of a tool which was useful to him; William has still received an instrument which perfects his work and increases his profits; there is still a service rendered by the lender, which entitles him to receive an equivalent service from the borrower; this just balance is not the less established by free mutual bargaining.

The very natural obligation to restore at the end of the term the entire _value_, still constitutes the principle of the duration of interest.

At the end of a year, says M. Thoré, will you find an additional crown in a bag of a hundred pounds?

No, certainly, if the borrower puts the bag of one hundred pounds on the shelf.

In such a case, neither the plane, nor the sack of corn, would reproduce themselves.

But it is not for the sake of leaving the money in the bag, nor the plane on the hook, that they are borrowed.

The plane is borrowed to be used, or the money to procure a plane.

And if it is clearly proved that this tool enables the borrower to obtain profits which he would not have made without it, if it is proved that the lender has renounced creating for himself this excess of profits, we may understand how the stipulation of a part of this excess of profits in favor of the lender, is equitable and lawful.

Ignorance of the true part which cash plays in human transactions, is the source of the most fatal errors.

I intend devoting an entire pamphlet to this subject.

From what we may infer from the writings of M. Proudhon, that which has led him to think that gratuitous credit was a logical and definite consequence of social progress, is the observation of the phenomenon which shows a decreasing interest, almost in direct proportion to the rate of civilization.

In barbarous times it is, in fact, cent.

per cent.

, and more.

Then it descends to eighty, sixty, fifty, forty, twenty, ten, eight, five, four, and three per cent.

In Holland, it has even been as low as two per cent.

Hence it is concluded, that "in proportion as society comes to perfection, it will descend to zero by the time civilization is complete.

In other words, that which characterizes social perfection is the gratuitousness of credit.

When, therefore, we shall have abolished interest, we shall have reached the last step of progress."

This is mere sophistry, and as such false arguing may contribute to render popular the unjust, dangerous, and destructive dogma, that credit should be gratuitous, by representing it as coincident with social perfection, with the reader's permission I will examine in a few words this new view of the question.

What is _interest_?

It is the service rendered, after a free bargain, by the borrower to the lender, in remuneration for the service he has received by the loan.

By what law is the rate of these remunerative services established?

By the general law which regulates the equivalent of all services; that is, by the law of supply and demand.

The more easily a thing is procured, the smaller is the service rendered by yielding it or lending it.

The man who gives me a glass of water in the Pyrenees, does not render me so great a service as he who allows me one in the desert of Sahara.

If there are many planes, sacks of corn, or houses, in a country, the use of them is obtained, other things being equal, on more favorable conditions than if they were few; for the simple reason, that the lender renders in this case a smaller _relative service_.

It is not surprising, therefore, that the more abundant capitals are, the lower is the interest.

Is this saying that it will ever reach zero?

No; because, I repeat it, the principle of a remuneration is in the loan.

To say that interest will be annihilated, is to say that there will never be any motive for saving, for denying ourselves, in order to form new capitals, nor even to preserve the old ones.

In this case, the waste would immediately bring a void, and interest would directly reappear.

In that, the nature of the services of which we are speaking does not differ from any other.

Thanks to industrial progress, a pair of stockings, which used to be worth six francs, has successively been worth only four, three, and two.

No one can say to what point this value will descend; but we can affirm, that it will never reach zero, unless the stockings finish by producing themselves spontaneously.

Why?

Because the principle of remuneration is in labor; because he who works for another renders a service, and ought to receive a service.

If no one paid for stockings, they would cease to be made; and, with the scarcity, the price would not fail to reappear.

The sophism which I am now combating has its root in the infinite divisibility which belongs to _value_, as it does to matter.

It appears, at first, paradoxical, but it is well known to all mathematicians, that, through all eternity, fractions may be taken from a weight without the weight ever being annihilated.

It is sufficient that each successive fraction be less than the preceding one, in a determined and regular proportion.

There are countries where people apply themselves to increasing the size of horses, or diminishing in sheep the size of the head.

It is impossible to say precisely to what point they will arrive in this.

No one can say that he has seen the largest horse or the smallest sheep's head that will ever appear in the world.

But he may safely say that the size of horses will never attain to infinity, nor the heads of sheep to nothing.

In the same way, no one can say to what point the price of stockings nor the interest of capitals will come down; but we may safely affirm, when we know the nature of things, that neither the one nor the other will ever arrive at zero, for labor and capital can no more live without recompense than a sheep without a head.

The arguments of M. Proudhon reduce themselves, then, to this: since the most skillful agriculturists are those who have reduced the heads of sheep to the smallest size, we shall have arrived at the highest agricultural perfection when sheep have no longer any heads.

Therefore, in order to realize the perfection, let us behead them.

I have now done with this wearisome discussion.

Why is it that the breath of false doctrine has made it needful to examine into the intimate nature of interest?

I must not leave off without remarking upon a beautiful moral which may be drawn from this law: "The depression of interest is proportioned to the abundance of capitals."

This law being granted, if there is a class of men to whom it is more important than to any other that capitals be formed, accumulate, multiply, abound, and superabound, it is certainly the class which borrows them directly or indirectly; it is those men who operate upon _materials_, who gain assistance by _instruments_, who live upon _provisions_, produced and economized by other men.

Imagine, in a vast and fertile country, a population of a thousand inhabitants, destitute of all capital thus defined.

It will assuredly perish by the pangs of hunger.

Let us suppose a case hardly less cruel.

Let us suppose that ten of these savages are provided with instruments and provisions sufficient to work and to live themselves until harvest time, as well as to remunerate the services of eighty laborers.

The inevitable result will be the death of nine hundred human beings.

It is clear, then, that since nine hundred and ninety men, urged by want, will crowd upon the supports which would only maintain a hundred, the ten capitalists will be masters of the market.

They will obtain labor on the hardest conditions, for they will put it up to auction, or the highest bidder.

And observe this--if these capitalists entertain such pious sentiments as would induce them to impose personal privations on themselves, in order to diminish the sufferings of some of their brethren, this generosity, which attaches to morality, will be as noble in its principle as useful in its effects.

But if, duped by that false philosophy which persons wish so inconsiderately to mingle with economic laws, they take to remunerating labor largely, far from doing good, they will do harm.

They will give double wages, it may be.

But then, forty-five men will be better provided for, whilst forty-five others will come to augment the number of those who are sinking into the grave.

Upon this supposition, it is not the lowering of wages which is the mischief, it is the scarcity of capital.

Low wages are not the cause, but the effect of the evil.

I may add, that they are to a certain extent the remedy.

It acts in this way; it distributes the burden of suffering as much as it can, and saves as many lives as a limited quantity of sustenance permits.

Suppose now, that instead of ten capitalists, there should be a hundred, two hundred, five hundred--is it not evident that the condition of the whole population, and, above all, that of the "prolétaires,"[18] will be more and more improved?

Is it not evident that, apart from every consideration of generosity, they would obtain more work and better pay for it?

--that they themselves will be in a better condition to form capitals, without being able to fix the limits to this ever-increasing facility of realizing equality and well-being?

Would it not be madness in them to admit such doctrines, and to act in a way which would drain the source of wages, and paralyze the activity and stimulus of saving?

Let them learn this lesson, then; doubtless, capitals are good for those who possess them: who denies it?

But they are also useful to those who have not yet been able to form them; and it is important to those who have them not, that others should have them.

[Footnote 18: Common people.

] Yes, if the "prolétaires" knew their true interests, they would seek, with the greatest care, what circumstances are, and what are not favorable to saving, in order to favor the former and to discourage the latter.

They would sympathize with every measure which tends to the rapid formation of capitals.

They would be enthusiastic promoters of peace, liberty, order, security, the union of classes and peoples, economy, moderation in public expenses, simplicity in the machinery of Government; for it is under the sway of all these circumstances that saving does its work, brings plenty within the reach of the masses, invites those persons to become the formers of capital who were formerly under the necessity of borrowing upon hard conditions.

They would repel with energy the warlike spirit, which diverts from its true course so large a part of human labor; the monopolizing spirit, which deranges the equitable distribution of riches, in the way by which liberty alone can realize it; the multitude of public services, which attack our purses only to check our liberty; and, in short, those subversive, hateful, thoughtless doctrines, which alarm capital, prevent its formation, oblige it to flee, and finally to raise its price, to the special disadvantage of the workers, who bring it into operation.

Well, and in this respect is not the revolution of February a hard lesson?

Is it not evident, that the insecurity it has thrown into the world of business, on the one hand; and, on the other, the advancement of the fatal theories to which I have alluded, and which, from the clubs, have almost penetrated into the regions of the Legislature, have everywhere raised the rate of interest?

Is it not evident, that from that time the "prolétaires" have found greater difficulty in procuring those materials, instruments, and provisions, without which labor is impossible?

Is it not that which has caused stoppages; and do not stoppages, in their turn, lower wages?

Thus there is a deficiency of labor to the "prolétaires," from the same cause which loads the objects they consume with an increase of price, in consequence of the rise of interest.

High interest, low wages, means in other words that the same article preserves its price, but that the part of the capitalist has invaded, without profiting himself, that of the workman.

A friend of mine, commissioned to make inquiry into Parisian industry, has assured me that the manufacturers have revealed to him a very striking fact, which proves, better than any reasoning can, how much insecurity and uncertainty injure the formation of capital.

It was remarked, that during the most distressing period, the popular expenses of mere fancy had not diminished.

The small theaters, the fighting lists, the public houses, and tobacco depôts, were as much frequented as in prosperous times.

In the inquiry, the operatives themselves explained this phenomenon thus: "What is the use of pinching?

Who knows what will happen to us?

Who knows that interest will not be abolished?

Who knows but that the State will become a universal and gratuitous lender, and that it will wish to annihilate all the fruits which we might expect from our savings?"

Well!

I say, that if such ideas could prevail during two single years, it would be enough to turn our beautiful France into a Turkey--misery would become general and endemic, and, most assuredly, the poor would be the first upon whom it would fall.

Workmen!

They talk to you a great deal upon the _artificial_ organization of labor;--do you know why they do so?

Because they are ignorant of the laws of its _natural_ organization; that is, of the wonderful organization which results from liberty.

You are told, that liberty gives rise to what is called the radical antagonism of classes;

that it creates, and makes to clash, two opposite interests--that of the capitalists and that of the "prolétaires."

But we ought to begin by proving that this antagonism exists by a law of nature; and afterwards it would remain to be shown how far the arrangements of restraint are superior to those of liberty, for between liberty and restraint I see no middle path.

Again, it would remain to be proved, that restraint would always operate to your advantage, and to the prejudice of the rich.

But, no; this radical antagonism, this natural opposition of interests, does not exist.

It is only an evil dream of perverted and intoxicated imaginations.

No; a plan so defective has not proceeded from the Divine Mind.

To affirm it, we must begin by denying the existence of God.

And see how, by means of social laws, and because men exchange amongst themselves their labors, and their productions, see what a harmonious tie attaches the classes, one to the other!

There are the landowners;

what is their interest?

That the soil be fertile, and the sun beneficent: and what is the result?

That corn abounds, that it falls in price, and the advantage turns to the profit of those who have had no patrimony.

There are the manufacturers; what is their constant thought?

To perfect their labor, to increase the power of their machines, to procure for themselves, upon the best terms, the raw material.

And to what does all this tend?

To the abundance and low price of produce; that is, that all the efforts of the manufacturers, and without their suspecting it, result in a profit to the public consumer, of which each of you is one.

It is the same with every profession.

Well, the capitalists are not exempt from this law.

They are very busy making schemes, economizing, and turning them to their advantage.

This is all very well; but the more they succeed, the more do they promote the abundance of capital, and, as a necessary consequence, the reduction of interest?

Now, who is it that profits by the reduction of interest?

Is it not the borrower first, and finally, the consumers of the things which the capitals contribute to produce?

It is, therefore, certain that the final result of the efforts of each class, is the common good of all.

You are told that capital tyrannizes over labor.

I do not deny that each one endeavors to draw the greatest possible advantage from his situation; but, in this sense, he realizes only that which is possible.

Now, it is never more possible for capitals to tyrannize over labor, than when they are scarce; for then it is they who make the law--it is they who regulate the rate of sale.

Never is this tyranny more impossible to them, than when they are abundant; for, in that case, it is labor which has the command.

Away, then, with the jealousies of classes, ill-will, unfounded hatreds, unjust suspicions.

These depraved passions injure those who nourish them in their hearts.

This is no declamatory morality; it is a chain of causes and effects, which is capable of being rigorously, mathematically demonstrated.

It is not the less sublime, in that it satisfies the intellect as well as the feelings.

I shall sum up this whole dissertation with these words: Workmen, laborers, "prolétaires," destitute and suffering classes, will you improve your condition?

You will not succeed by strife, insurrection, hatred, and error.

But there are three things which cannot perfect the entire community without extending these benefits to yourselves; these things are--peace, liberty, and security.

End of Project Gutenberg's Sophisms of the Protectionists, by Frederic Bastiat *** END OF THE PROJECT GUTENBERG EBOOK SOPHISMS OF THE PROTECTIONISTS *** Updated editions will replace the previous one—the old editions will be renamed.

Creating the works from print editions not protected by U. S.

copyright law means that no one owns a United States copyright in these works, so the Foundation (and you!

) can copy and distribute it in the United States without permission and without paying copyright royalties.

Special rules, set forth in the General Terms of Use part of this license, apply to copying and distributing Project Gutenberg™ electronic works to protect the PROJECT GUTENBERG™ concept and trademark.

Project Gutenberg is a registered trademark, and may not be used if you charge for an eBook, except by following the terms of the trademark license, including paying royalties for use of the Project Gutenberg trademark.

If you do not charge anything for copies of this eBook, complying with the trademark license is very easy.

You may use this eBook for nearly any purpose such as creation of derivative works, reports, performances and research.

Project Gutenberg eBooks may be modified and printed and given away—you may do practically ANYTHING in the United States with eBooks not protected by U. S.

copyright law.

Redistribution is subject to the trademark license, especially commercial redistribution.

START: FULL LICENSE

THE FULL PROJECT GUTENBERG™ LICENSE

PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK

To protect the Project Gutenberg™ mission of promoting the free distribution of electronic works, by using or distributing this work (or any other work associated in any way with the phrase “Project Gutenberg”), you agree to comply with all the terms of the Full Project Gutenberg License available with this file or online at www.

gutenberg.

org/license.

Section 1.

General Terms of Use and Redistributing Project Gutenberg electronic works 1. A.

By reading or using any part of this Project Gutenberg electronic work, you indicate that you have read, understand, agree to and accept all the terms of this license and intellectual property (trademark/copyright) agreement.

If you do not agree to abide by all the terms of this agreement, you must cease using and return or destroy all copies of Project Gutenberg electronic works in your possession.

If you paid a fee for obtaining a copy of or access to a Project Gutenberg electronic work and you do not agree to be bound by the terms of this agreement, you may obtain a refund from the person or entity to whom you paid the fee as set forth in paragraph 1. E.

8. 1. B.

“Project Gutenberg” is a registered trademark.

It may only be used on or associated in any way with an electronic work by people who agree to be bound by the terms of this agreement.

There are a few things that you can do with most Project Gutenberg electronic works even without complying with the full terms of this agreement.

See paragraph 1. C below.

There are a lot of things you can do with Project Gutenberg electronic works if you follow the terms of this agreement and help preserve free future access to Project Gutenberg electronic works.

See paragraph 1. E below.

1. C.

The Project Gutenberg Literary Archive Foundation (“the Foundation” or PGLAF), owns a compilation copyright in the collection of Project Gutenberg electronic works.

Nearly all the individual works in the collection are in the public domain in the United States.

If an individual work is unprotected by copyright law in the United States and you are located in the United States, we do not claim a right to prevent you from copying, distributing, performing, displaying or creating derivative works based on the work as long as all references to Project Gutenberg are removed.

Of course, we hope that you will support the Project Gutenberg mission of promoting free access to electronic works by freely sharing Project Gutenberg works in compliance with the terms of this agreement for keeping the Project Gutenberg name associated with the work.

You can easily comply with the terms of this agreement by keeping this work in the same format with its attached full Project Gutenberg License when you share it without charge with others.

1. D.

The copyright laws of the place where you are located also govern what you can do with this work.

Copyright laws in most countries are in a constant state of change.

If you are outside the United States, check the laws of your country in addition to the terms of this agreement before downloading, copying, displaying, performing, distributing or creating derivative works based on this work or any other Project Gutenberg work.

The Foundation makes no representations concerning the copyright status of any work in any country other than the United States.

1. E.

Unless you have removed all references to Project Gutenberg: 1. E.

1. The following sentence, with active links to, or other immediate access to, the full Project Gutenberg License must appear prominently whenever any copy of a Project Gutenberg work (any work on which the phrase “Project Gutenberg” appears, or with which the phrase “Project Gutenberg” is associated) is accessed, displayed, performed, viewed, copied or distributed: This eBook is for the use of anyone anywhere in the United States and most other parts of the world at no cost and with almost no restrictions whatsoever.

You may copy it, give it away or re-use it under the terms of the Project Gutenberg™ License included with this eBook or online at www.

gutenberg.

org.

If you are not located in the United States, you will have to check the laws of the country where you are located before using this eBook.

1. E.

2. If an individual Project Gutenberg electronic work is derived from texts not protected by U. S.

copyright law (does not contain a notice indicating that it is posted with permission of the copyright holder), the work can be copied and distributed to anyone in the United States without paying any fees or charges.

If you are redistributing or providing access to a work with the phrase “Project Gutenberg” associated with or appearing on the work, you must comply either with the requirements of paragraphs 1. E.

1 through 1. E.

7 or obtain permission for the use of the work and the Project Gutenberg trademark as set forth in paragraphs 1. E.

8 or 1. E.

9. 1. E.

3. If an individual Project Gutenberg electronic work is posted with the permission of the copyright holder, your use and distribution must comply with both paragraphs 1. E.

1 through 1. E.

7 and any additional terms imposed by the copyright holder.

Additional terms will be linked to the Project Gutenberg License for all works posted with the permission of the copyright holder found at the beginning of this work.

1. E.

4. Do not unlink or detach or remove the full Project Gutenberg License terms from this work, or any files containing a part of this work or any other work associated with Project Gutenberg.

1. E.

5. Do not copy, display, perform, distribute or redistribute this electronic work, or any part of this electronic work, without prominently displaying the sentence set forth in paragraph 1. E.

1 with active links or immediate access to the full terms of the Project Gutenberg License.

1. E.

6. You may convert to and distribute this work in any binary, compressed, marked up, nonproprietary or proprietary form, including any word processing or hypertext form.

However, if you provide access to or distribute copies of a Project Gutenberg work in a format other than “Plain Vanilla ASCII” or other format used in the official version posted on the official Project Gutenberg website (www.

gutenberg.

org), you must, at no additional cost, fee or expense to the user, provide a copy, a means of exporting a copy, or a means of obtaining a copy upon request, of the work in its original “Plain Vanilla ASCII” or other form.

Any alternate format must include the full Project Gutenberg License as specified in paragraph 1. E.

1. 1. E.

7. Do not charge a fee for access to, viewing, displaying, performing, copying or distributing any Project Gutenberg works unless you comply with paragraph 1. E.

8 or 1. E.

9. 1. E.

8. You may charge a reasonable fee for copies of or providing access to or distributing Project Gutenberg electronic works provided that: • You pay a royalty fee of 20% of the gross profits you derive from the use of Project Gutenberg works calculated using the method you already use to calculate your applicable taxes.

The fee is owed to the owner of the Project Gutenberg trademark, but he has agreed to donate royalties under this paragraph to the Project Gutenberg Literary Archive Foundation.

Royalty payments must be paid within 60 days following each date on which you prepare (or are legally required to prepare) your periodic tax returns.

Royalty payments should be clearly marked as such and sent to the Project Gutenberg Literary Archive Foundation at the address specified in Section 4, “Information about donations to the Project Gutenberg Literary Archive Foundation.

” • You provide a full refund of any money paid by a user who notifies you in writing (or by e-mail) within 30 days of receipt that s/he does not agree to the terms of the full Project Gutenberg™ License.

You must require such a user to return or destroy all copies of the works possessed in a physical medium and discontinue all use of and all access to other copies of Project Gutenberg™ works.

• You provide, in accordance with paragraph 1. F.

3, a full refund of any money paid for a work or a replacement copy, if a defect in the electronic work is discovered and reported to you within 90 days of receipt of the work.

• You comply with all other terms of this agreement for free distribution of Project Gutenberg™ works.

1. E.

9. If you wish to charge a fee or distribute a Project Gutenberg™ electronic work or group of works on different terms than are set forth in this agreement, you must obtain permission in writing from the Project Gutenberg Literary Archive Foundation, the manager of the Project Gutenberg™ trademark.

Contact the Foundation as set forth in Section 3 below.

1. F.

1. F.

1. Project Gutenberg volunteers and employees expend considerable effort to identify, do copyright research on, transcribe and proofread works not protected by U. S.

copyright law in creating the Project Gutenberg™ collection.

Despite these efforts, Project Gutenberg™ electronic works, and the medium on which they may be stored, may contain “Defects,” such as, but not limited to, incomplete, inaccurate or corrupt data, transcription errors, a copyright or other intellectual property infringement, a defective or damaged disk or other medium, a computer virus, or computer codes that damage or cannot be read by your equipment.

1. F.

2. LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except for the “Right of Replacement or Refund” described in paragraph 1. F.

3, the Project Gutenberg Literary Archive Foundation, the owner of the Project Gutenberg™ trademark, and any other party distributing a Project Gutenberg™ electronic work under this agreement, disclaim all liability to you for damages, costs and expenses, including legal fees.

YOU AGREE THAT YOU HAVE NO REMEDIES FOR NEGLIGENCE, STRICT

LIABILITY, BREACH OF WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE PROVIDED IN PARAGRAPH 1.

F.

3. YOU AGREE THAT THE FOUNDATION, THE

TRADEMARK OWNER, AND ANY DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE LIABLE TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR INCIDENTAL DAMAGES EVEN IF YOU GIVE NOTICE OF THE POSSIBILITY OF SUCH DAMAGE.

1. F.

3. LIMITED RIGHT OF REPLACEMENT OR REFUND - If you discover a defect in this electronic work within 90 days of receiving it, you can receive a refund of the money (if any) you paid for it by sending a written explanation to the person you received the work from.

If you received the work on a physical medium, you must return the medium with your written explanation.

The person or entity that provided you with the defective work may elect to provide a replacement copy in lieu of a refund.

If you received the work electronically, the person or entity providing it to you may choose to give you a second opportunity to receive the work electronically in lieu of a refund.

If the second copy is also defective, you may demand a refund in writing without further opportunities to fix the problem.

1. F.

4. Except for the limited right of replacement or refund set forth in paragraph 1. F.

3, this work is provided to you ‘AS-IS’, WITH NO OTHER WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PURPOSE.

1. F.

5. Some states do not allow disclaimers of certain implied warranties or the exclusion or limitation of certain types of damages.

If any disclaimer or limitation set forth in this agreement violates the law of the state applicable to this agreement, the agreement shall be interpreted to make the maximum disclaimer or limitation permitted by the applicable state law.

The invalidity or unenforceability of any provision of this agreement shall not void the remaining provisions.

1. F.

6. INDEMNITY - You agree to indemnify and hold the Foundation, the trademark owner, any agent or employee of the Foundation, anyone providing copies of Project Gutenberg™ electronic works in accordance with this agreement, and any volunteers associated with the production, promotion and distribution of Project Gutenberg™ electronic works, harmless from all liability, costs and expenses, including legal fees, that arise directly or indirectly from any of the following which you do or cause to occur: (a) distribution of this or any Project Gutenberg work, (b) alteration, modification, or additions or deletions to any Project Gutenberg work, and (c) any Defect you cause.

Section 2.

Information about the Mission of Project Gutenberg Project Gutenberg is synonymous with the free distribution of electronic works in formats readable by the widest variety of computers including obsolete, old, middle-aged and new computers.

It exists because of the efforts of hundreds of volunteers and donations from people in all walks of life.

Volunteers and financial support to provide volunteers with the assistance they need are critical to reaching Project Gutenberg’s goals and ensuring that the Project Gutenberg collection will remain freely available for generations to come.

In 2001, the Project Gutenberg Literary Archive Foundation was created to provide a secure and permanent future for Project Gutenberg and future generations.

To learn more about the Project Gutenberg Literary Archive Foundation and how your efforts and donations can help, see Sections 3 and 4 and the Foundation information page at www.

gutenberg.

org.

Section 3.

Information about the Project Gutenberg Literary Archive Foundation The Project Gutenberg Literary Archive Foundation is a non-profit 501(c)(3) educational corporation organized under the laws of the state of Mississippi and granted tax exempt status by the Internal Revenue Service.

The Foundation’s EIN or federal tax identification number is 64-6221541. Contributions to the Project Gutenberg Literary Archive Foundation are tax deductible to the full extent permitted by U.

S.

federal laws and your state’s laws.

The Foundation’s business office is located at 41 Watchung Plaza #516, Montclair NJ 07042, USA, +1 (862) 621-9288. Email contact links and up to date contact information can be found at the Foundation’s website and official page at www.

gutenberg.

org/contact Section 4.

Information about Donations to the Project Gutenberg Literary Archive Foundation Project Gutenberg™ depends upon and cannot survive without widespread public support and donations to carry out its mission of increasing the number of public domain and licensed works that can be freely distributed in machine-readable form accessible by the widest array of equipment including outdated equipment.

Many small donations ( to ,000) are particularly important to maintaining tax exempt status with the IRS.

The Foundation is committed to complying with the laws regulating charities and charitable donations in all 50 states of the United States.

Compliance requirements are not uniform and it takes a considerable effort, much paperwork and many fees to meet and keep up with these requirements.

We do not solicit donations in locations where we have not received written confirmation of compliance.