. Special Incentives To Production.

_Good government chief._--The productive energy of any country is
encouraged chiefly by what we call good government. This means especially
security of property rights by prevention of frauds and robbery of every
kind, and free interchange of ideas, as well as of products of industry,
and general public intelligence. It is not enough that individuals
throughout a community be fairly intelligent, but they must have
sufficiently mutual ground of intelligence in common purposes and common
interests in everyday work to bring without effort a perfectly mutual
confidence. Where these essentials are absent no devices can operate
extensively for the encouragement of energy in production. Where they are
present it is always possible to add extra incentives, to give direction
at least to the energies of the people, and perhaps to increase those
energies. Some of these incentives are too important to be overlooked.

_Premiums._--The most simple means of encouraging enterprise is found in
premiums of various kinds offered by individuals, local societies or
municipal authority. These operate by adding to the natural advantage of
energetic labor some special reward in recognition of its accomplishment.
Illustrations are familiar in connection with so-called fairs of all kinds
where prizes are distributed for the largest product of a kind, the most
profitable crop, the best article for any purpose, the greatest variety of
crops or stock, or for any conceivable device which seems to add to the
producing power of the community. Governments often offer premiums for
plans of public buildings, and sometimes for offensive weapons. All of
these operate upon the one principle of arousing special energy by
superior advantage given to the successful competitor. Its advantages are
evident. Its disadvantages sometimes outweigh advantages. It encourages
somewhat the spirit of gambling, resulting in devices for winning the
prize through false representation. It exaggerates the importance of showy
qualities for the sake of notoriety, and it fosters those jealousies which
too constantly interfere with the welfare of communities.

Both advantages and disadvantages are well illustrated in agricultural
fairs. These have proved a most admirable stimulant to better agriculture,
where clear-headed, intelligent judges have judiciously distributed prizes
of such a nature as to have their chief use in establishing the qu