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Carleton College. John Bates Clark on the Meanings of Socialism, 1879

The following essay was written by one of the (then) not-ready-for-prime-time American economists, John Bates Clark, in his early thirties when he was teaching political economy and history at Carleton College in Northridge, Minnesota where (and when) Thorstein Veblen and his siblings were undergraduates. Political economy was a course in the senior year curriculum. I was reading this essay to get a sense of what the word “socialism” would have meant to a well-read, educated American back when Rutherford B. Hayes was President and still eight years before an English translation of the first volume of Marx’s Capital was to appear.  

John Bates Clark was of that founding generation of American academic economists trained-in-Germany, so he was of course completely familiar with, indeed he reflects the German debates of where to draw the line between individualism and socialism in economic affairs and between reform and revolution in political affairs. Here are three teasers from Clark’s essay that follows:

“The intelligent attitude of the social philosopher is, therefore, that of recognizing the general direction which social development is taking, but avoiding that mental confusion which mistakes the socialistic ideal for an object of immediate practical effort. The most intelligent socialist will be the most zealous opponent of what commonly terms itself socialism.”

“…it is only a question of time when the abuses of overgrown corporations controlling legislatures and making or marring the prosperity of cities and even states, at their sovereign pleasure, shall more than counterbalance the abuses which would arise from their assumption and management by the state.”

“The socialistic ideal itself is valuable, not when it is used to incite men to frantic attempts to reach it, but when, by giving definiteness to their intelligent hopes, it is made to lighten the moderate steps by which only they can expect to approach it.”

The historian wants to be on guard against the all-too-easy glib recognition of patterns and sequences shared by past and present. But this is just a blog that is trying (among other things) to build a convenient on-ramp to the past for the those who have had what they believe to be a full and complete scholarly life without having any need to lug baggage of historical material  with them. My point is to have visitors to Economics in the Rear View Mirror read the following essay, not simply to appreciate the humane insights it provides but to read it with the debate (Hope v. Change) between the Democratic presidential contenders of 2016, Bernie Sanders and Hillary Clinton in mind. Paul Krugman appears to unleash John-Bates-Clark (implicitly) when he weighs in on Bernie v. Hillary.

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THE NATURE AND PROGRESS OF TRUE SOCIALISM.
John B. Clark

The New Englander and Yale Review, Vol. 38, July, 1879, pp. 565-581.

History has lately been said to move in cycles and epicycles; its phenomena tend to recur, at intervals, in regular succession. An anarchic condition may be followed by despotism, that by democracy, and that, again, by anarchy; yet the second anarchy is not like the first, and when it, in turn, yields to despotism, that also is different from the former despotism. The course of history has been in a circle, but it is a circle whose center is moving. The same phenomena may recur indefinitely; but at each recurrence the whole course of events will have advanced, and the existing condition will be found to have had its parallel, though not its precise duplicate, in some previous condition. There is nothing permanent in history, and there is nothing new. That which is will pass away, and that which will take its place will be like something that has already existed and passed away. History moves, like the earth, in an orbit; but, like the earth, it moves in an orbit the center of which is describing a greater orbit.

That any particular social condition has existed in the past, and has passed away, is no evidence that it will not return, but is rather an evidence that it will return, though in a different form. That socialism existed in the highly developed village-community of the middle ages, and that it existed in a ruder form in antiquity, is, as far as it goes, an evidence that it may appear again, though in a shape adapted to its new surroundings. The earlier cycles of the historic movement are too distant for tracing, and it is impossible to say how many times it may have appeared and disappeared in prehistoric times; but the last cycle may be traced with reasonable distinctness. We have been made familiar, of late, with the village-community of mediaeval times. Beginning at that point, we may trace the economic history of Europe through a series of conditions growing successively less and less socialistic, until we reach the aphelion of the system, the extreme anti-socialistic point, and begin slowly to tend in an opposite direction. I should locate this turning point at a period about a hundred years ago. While Adam Smith was formulating the present system of Political Economy, the world was, in economic matters, at its farthest limit in the direction of individualism, and was about commencing slowly to progress in a socialistic condition.

It is necessary to dissociate from the meaning of the term socialism, as I intend to use it, the signification of lawlessness and violence which is apt to be attached to it. I do not mean by socialism a certain rampant political thing which calls itself by that name, and whose menacing attitude at present is uniting well meaning men against it. The socialism which destroys property and arms itself to resist law is rather socialistic Jacobinism, or communism of the Parisian type. Political socialism, even when moderate and law-abiding, has no right to the exclusive use of the generic term; it is a part only of a very general movement, the signs of which are to be seen in other things than communistic newspapers and Lehr-und Wehr-Vereins.

I mean by socialism, not a doctrine, but a practical movement, tending not to abolish the right of property, but to vest the ownership of it in social organizations, rather than in individuals. The organizations may be private corporations, village-communities, cities, states, or nations, provided only that working men be represented in them. The object of the movement is to secure a distribution of wealth founded on justice, instead of one determined by the actual results of the struggle of competition. Wherever numbers of men unite in the owning of capital, as they already do in the performing of labor, and determine the division of the proceeds by some appeal to a principle of justice, rather than by a general scramble, we have a form of socialism.

The word thus signifies a more highly developed condition of social organization. Within the great organism which we term the state, there are many specific organisms of an industrial character. Such are nearly all our manufactories. These have the marks of high organic development in a minute differentiation of parts; labor is minutely subdivided in these establishments. One man grinds in the ax-factory, and, during his brief lifetime, is not, in economic relations, an independent being, but only a part of the grinding organ of an ax-making creature whose separate atoms are men. All the laborers of the factory, taken collectively, compose an organism which acts as a unit in the making of axes. This ax-making body, however, with its human molecules, is acting in a subordinate capacity—it is hired. As a whole it is serving an employer, and it desires to become independent. The same ambition which prompts the apprentice to leave his master and start in business for himself, is now prompting these organizations of employés to desire a similar promotion. Industrial organisms are seeking what individuals have long been encouraged to seek—emancipation. It is the old struggle for personal independence, translated to a higher plane of organic life.

The modes in which this end is sought are various, and, in so far as the object is realized by any of them, competition is held in abeyance within the organizations, and the division of the product is determined by justice rather than force.

Justice is by no means excluded under the present system. What we term competition is, in practice, subject to such moral limitations that it can be so termed only in a qualified
sense. Moral force, however, now acts only as a restraining influence; it fixes certain limits within which competition is encouraged to operate in determining the distribution of property. Socialism proposes to definitely abandon the competitive principle. If completely realized, as we shall see that it cannot be, it would give to every man, not whatever he might be able to get by force in the industrial arena, but what, in abstract justice, he ought to receive; and moral influence would no longer content itself with prescribing rules, however minute, for the economic gladiators, but would bid them sheath their swords and submit their fortunes to its immediate arbitration. This is ideal socialism, and any actual tendency toward it is practical socialism.

The original force in the movement is moral; mere diversity of interest does not produce permanent social changes. Such diversity of interest always exists where property is to be distributed; but the sense of justice overrules discontent if the distribution is equitable. When a company of thieves are dividing their booty, mere diversity of interest would prompt each one to try to seize the whole of it; but the captain is allowed to divide it into equal shares. The interests of every member of the gang are antagonistic to those of every other; yet there is no outward conflict. In this criminal company the sense of right is sufficiently strong to overrule discontent as long as justice presides over the distribution. Let justice be disregarded, and there will be an uproar. All societies present these phenomena, desires antagonistic, justice as the mediator; it is when the mediation becomes imperfect that social revolutions occur.

If there were not at present something more than a conflict of interest between employers and employed, there would be no thought of reorganizing society. There is such a conflict; but there is behind it a sense of injustice in the distribution of wealth. Singularly enough, there is less disposition to question the existence of the injustice than there is to deny the existence of conflicting interests. We are constantly being told that no intelligent conflict between capitalists and laborers is possible; that their interests are completely identical, and that their normal relation is one of paradisaical harmony. Frequently as this statement is reiterated, the laborers fail to be convinced, and the relation between them and their employers grows, in fact, constantly less paradisaical. There is confusion of thought in prevalent discussions, and the first thing to be done is to analyze the actual relation of capitalists and laborers, and try to remove the confusion.

There is harmony of interest between the two classes in the operation of production; but there is diversity of interest in the operation of distribution. Capitalists and laborers are interested that as much wealth as possible shall be produced, for both are dependent on the product. The mill must be run, or neither owner nor employé can receive anything. When, however, the product is realized, the relation changes; the question is now one of division. The more there is for the owner, the less can go to the men, and here is a source of conflict. The crew of a whaling ship may work with good will until the cargo is brought into port, and then wrangle over their respective shares. They will not go to the length of burning the ship, for they all need it for farther use. Certain limits are thus set to the conflict that arises over the division; but these limits are liable to be broad, and within them the conflict continues.

For clearness of illustration a case has been selected in which production and distribution are separated in time; ordinarily they both go on together, and the relation of employers and employed is, therefore, not an alternation in time from a condition in which their interests harmonize, to one in which they antagonize, but presents a permanent harmony in one respect and a permanent antagonism in another. Both parties are interested in continued and successful production; but in the mere matter of distribution their antagonism of interest is as permanent as their connection. To ignore either side of the relation is unintelligent. If it be incendiary to proclaim only an irrepressible conflict between capital and labor, it is imbecile to reiterate that there is no possible ground of conflict between them, and that actual contests result from ignorance.

While there is no such thing as harmony of interest between participants in any distributing process, there is, fortunately, such a thing as harmony of justice, and if this had been reached or approximated, there would be no need of reforms. It is not merely a sense of unsatisfied want, but a sense of unsatisfied desert, that is prompting men to seek a new mode of distributing wealth.

There are two kinds of distribution, there are good things to be divided when the production is completed, and there are disagreeable things to be shared during the process. After the voyage is over it is oil-barrels that are to be counted and divided, and each man wants as many as possible; during the voyage it is toils and dangers that are to be borne collectively, and each man desires to have as few as possible. In each part of the distributive process there are antagonistic interests which can never be removed, and between which justice only can mediate. Socialism proposes to directly invoke such mediation in both parts of the process; “work according to ability, and compensation according to need,” is the ideal of Louis Blanc. We know that it is an ideal only, and that society cannot reach it; but we ought to know that society may and does tend toward it by many different ways, which, taken collectively, are effecting a sure and healthful reorganization of industrial conditions.

While, at present, the distribution of the product of industry is a more prominent question than the distribution of the labor which secures it, in a completely socialistic condition the reverse would be the case. In a commune the compensation would be the fixed, and the labor the variable element; and here is the chief difficulty of the system. Justice could probably mediate more easily in the distribution of the product than in that of the labor. If pauperism threatens the present system, laziness would threaten an ideally socialistic one. It would be difficult to make men work when their living should no longer depend on it.

The true conception of practical socialism is not that of an ideal scheme, against which this and other objections would be valid, but rather of an actual tendency, showing itself in many specific ways, and working gradually towards an ideal, which unpractical theorists may have grasped and stated, but which would only be put farther out of reach by measures of disorganization and violence. There are socialistic waves on the surface of society; but beneath them there is an undercurrent flowing calmly and resistlessly in the direction of a truer socialism.

Practical socialism is not identical with economic centralization, but it is caused by it. The concentration of industries in a few great establishments produces evils for which practical socialism in some form is the only permanent remedy. Yet these evils may be temporarily alleviated by measures tending to retard this process of concentration. Two classes of remedies for labor troubles are likely to be in operation together, one class resisting and retarding the inevitable growth of centralization, and the other accepting centralization, and rather facilitating it than otherwise, but endeavoring to remove the evils which it occasions. Only the latter are socialistic measures; yet the former need to be considered, not only because they attack similar evils, but because they serve to gain time for the testing of socialistic measures. Haste is the worst enemy of social reform, and whatever gains time for its earlier steps is, therefore, its truest ally.

Of these non-socialistic measures the most important is the prudential and legal restraining of population, advocated by Malthus. So much has been said on this subject that farther discussion is uncalled for here. It is impossible to exaggerate the importance of the measure. In one way it retards centralization; in another it improves the condition of laborers when centralization has taken place. It will become doubly important as the socialistic tendency proceeds; the absence of such restraints would be fatal to a definitely communistic scheme.

Emigration is next in importance. The great West, as long as it lasts, is the hope of the world, the refuge from economic, as well as from political oppression. Land properly subdivided secures a union of capital and labor, and vests them both in an individual; the diffusion of population tends to individualism. As long as such diffusion is practicable it is preferable to socialism. Small farmers are the best material ever created for the making of orderly and prosperous states. Self-reliant and inseparably committed to the preservation of order, they are the natural enemy of the social agitator—provided, always, they are not too much in debt. Small merchants and artizans are apt to be associated with small farmers, and are next to them in value to a state. Professional men, with limited fields of labor, come in the same category. These are the elements of the ideal New England village, as it existed a hundred years ago, but as it exists no longer in that locality, though its counterpart may be found, in less perfection, at the West. Such a community is the culmination of the principle of individualism, and exhibits its very best results. Long may such communities continue, and far distant be the day when they shall have everywhere yielded to manufacturing and mercantile towns, with their dense population, their poverty, ignorance, and not unnatural discontent. Yet the prospect of such a transformation hangs now like a threatening shadow over the land. Population cannot scatter itself forever. The world is beginning to seem small; emigration from the east and that from the west already meet. The days of diffusion are limited, and those of concentration are at hand.

The present situation has thus its element of discouragement as well as of encouragement; discouraging is the inevitable growth of economic centralization; encouraging is the prospect of removing the evils which that process entails by measures, in a broad sense, socialistics, and of retarding, by other measures, the centralizing process itself. To the broad view the prospect is, on the whole, exceedingly hopeful; but it takes a correct and comprehensive view of the nature of true socialism to make it appear so. The prospect of delaying the concentration of industries is the better from the fact that that process is partly owing to causes within our control; we have hastened it by our own acts. If it be an object to keep our rural communities as long as possible, an effective means of doing so would be to stop making laws, the effect of which is to break them up. Protective tariffs favor manufactures at the expense of agriculture, and therefore hasten centralization. A law of this kind may properly be called “An act to hasten the depopulation of rural villages, to encourage poverty and ignorance, to facilitate the extension of revolutionary ideas, to increase the power of demagogues and to precipitate social tumults.” A moderate free trade policy would have a great many effects not to be discussed here; but one of them would be to prolong the duration of the best forms of individualism.

Such measures, at best, only postpone the great question; they do not settle it, and nothing can settle it except what I have termed, in a broad sense, true socialism. Unknown to social theorists, the way for true socialism has been preparing for a hundred years, and a consideration of these preliminary steps helps to give the true conception of it, as a general development, directed by the Providence which presides over all history.

Among these preliminary changes is the growth of business corporations. These institutions are not beloved by working men, since they are aggregations of capital, but little of which is owned by employés. They mean, to the laborer, an employer without a soul, instead of an employer with one, and they sometimes grind the laborers as few individuals would grind them. Yet the stock company has the capacity easily to become a coöperative institution, and has been its necessary forerunner. It has developed the plan of organization on which coöperative societies may succeed. A slight change in the existing company would make it a coöperative society in complete running order, with its business established and its success assured. Certain foreign experiments in railway management show that the soul need not be entirely wanting in an ordinary corporation, when it is not wanting in its managers; in its present form it may have a rudimentary soul, the presence of which makes a vast difference in the welfare of its laborers. When the corporation shall fairly pass the point in its development where it acquires a fully grown corporate soul, it will become a coöperative society, a beneficent form of true socialism.

Federative governments have paved the way for whatever of political socialism is hopeful and legitimate. The village commune of the middle ages existed at a time when the city or village, and not the individual citizen, was the political unit in the general government. Men were citizens of their towns rather than of their country; and the town, as a whole, was a subject of the king. With the breaking down of city walls and of civic isolation, the citizen became a member of a general society. When the town ceased to be the political unit, it ceased, at the same time, to be the economic unit; it no longer held its lands in common. The partial revival of the federative principle in politics has made it easier to partially restore the socialistic principle in economic matters. There are now cities, states, and nations, each of which acts as an organic unit in many political relations, and the chance of their acting as an organic unit in industry is greatly increased. Enterprises that would be impracticable for a nation may be possible for a state or a city.

We have now to consider institutions that are definitely socialistic. Of these, coöperative societies are first in order, and, thanks to recent experiments and discussions, may be spoken of as something better than visionary schemes. Tried under favorable circumstances, they have become accomplished facts. These circumstances are probably not realized, as yet, over the greater part of this country. The Rochdale association owes its success to conditions not all of which can be found in any part of America. There was a large homogeneous population of manufacturing employés, well organized, and imbued with the teachings of Owen. There was an absence of retail shops that were either good or cheap. There was a universal prevalence of the credit system among dealers; and there was an absence, among them, of that sharp competitive spirit which, in this country, leads merchants to strive to outdo each other in reducing prices to a minimum. The association, therefore, had exceptionally good material in its members and its managers, and had an unusual field for securing custom by the virtual reduction of prices which it was able to offer to its patrons. The absence of these advantages, at present, in this country proves, not that coöperation has no legitimate home here, but rather the opposite; it shows that too sweeping conclusions against the measure should not be drawn from past failures. These failures are accounted for, and their causes are not permanent. The requisite conditions are likely to be realized in the future, and with them will come a higher degree of success for the new principle than we have seen here as yet. That success is to be regarded as assured already, on better evidence than the result of any particular experiment, namely, the general course of events, of which such an experiment is one of many indications, an eddy, that tells the direction of the undercurrent.

The Rochdale store has been called an experiment in “coöperative distribution,” in distinction from manufacturing enterprises, which have been classed as “coöperative production;” an unscientific use of terms, since mercantile industry is productive, like any other. This store represents a peculiar kind of coöperative production. Mr. Mill has pointed out that it is not completely coöperative, in that the managers, clerks, porters, &c., are not paid by shares in the profits, and has suggested that to give them such shares would make the experiment complete. Yet these employés are few in number in proportion to the shareholders and customers, who are the real parties in the experiment. Coöperative stores organized by working men in manufacturing villages are of the nature of mixed coöperation. The essential particularity about them is that men who are employés in one industry become proprietors in another. There is a union of capital and labor in the same hands, but not in the same industry; while the labor of the men is engaged in one enterprise, they accumulate capital and employ it in another. While, therefore, such experiments may greatly benefit the working men, they cannot remove the cause of conflict between them and their employers in their own original industry. The store may help the mill operatives to cheap goods, but their relation to the owner of the mill remains unaltered. The same is true of all experiments in mixed coöperation; they are beneficent undertakings, but do not remove the root of the evil.

On a par with mixed coöperation is that partial coöperation in which laborers do not own capital, but are paid by a share of profits, instead of by wages. Mr. Mill’s illustrations of this system, taken from the workshops of Paris, are sufficiently familiar; but an illustration nearer at hand and brilliantly successful is offered by the New Bedford whale fishery. The crews of whaling vessels were regularly paid by a share of the cargo, and the hearty good will which they showed, in a kind of work in which superintendence by the owner was impossible, proves the efficiency of this measure in intensifying the harmony of interest and of feeling which should exist between employers and employed, as far as production is concerned. This plan does not, in theory, remove the conflict of interest which exists in reference to distribution; it is still possible to wrangle over the size of the shares. The seamen who received each a two-hundredth part of the cargo might strike for the one-hundred-and-fiftieth. Strikes did not, in fact, occur, because custom had determined what appeared to be the rightful share of each person, and they all submitted to such arbitration.

The share system, if generally introduced, would work to the advantage of the laboring class in times of prosperity, and to their disadvantage in times of depression. Under unsettled conditions neither employers nor employed are likely to favor the plan; the employers, because they do not wish to sacrifice the chance of becoming rapidly rich in prosperous periods; and the workmen, because they do not wish to run the risk of receiving less than they now do in times of adversity. Under settled conditions the plan might be expected to work to the advantage of both parties. A minimum would doubtless be determined upon below which the shares of the laborers should not be allowed to fall. With the general prevalence of more settled conditions in industry the adoption of the share system becomes more probable.

Coöperation is complete only when laborers own the capital which is employed in the industry in which they are engaged. Here the conflict of interest between capital and labor is reduced to a minimum, and justice has the freest scope in determining the distribution of the product. This most desirable form of coöperation is the most difficult. In a small way it is in operation where a number of partners in a shop do all the work. Where small industries prevail, however, there is little need of coöperative experiments. In the departments of transportation and of manufactures concentration is most rapid and most merciless to the laborer, and while the evils of railroad monopolies are more likely to be remedied by state action, those arising from overgrown manufacturing enterprises call urgently for private coöperation. The difficulties are in proportion to the desirability of the end, arising from the amount and character of the capital required, the complicated nature of the process, and the fierce competition to be sustained. These difficulties account for past failures in this direction, and deprive them of their weight as arguments against the ultimate prevalence of the system. Difficulties will be surmounted, if the principle of the system is right and is in the general line of economic progress.

Complete coöperation has succeeded on the largest scale in agriculture. The economic motive for this mode of living is less urgent in this department of industry than in others; but success is easier, and in the chief experiment of the kind, a religious motive has supplemented the economic. The Shakers, the Amana communists, the Perfectionists and others have been united by other than economic bonds, and the success of their experiments is not only nor chiefly in proving that agricultural socialism is possible, but in showing that this mode of living is favorable, as it seems to have been in Jerusalem of old, to religious brotherhood among men. Indeed the bit of communistic history furnished by the book of Acts appears to have, as one object at least, to refute the arguments of those who claim that socialism is not merely impracticable, but ultimately and forever undesirable, and who can see only evil in the successive steps of society in that direction. The early Christian commune was a success religiously, if not otherwise; and if modern communes can be made successful economically and religiously, if, while removing evils purely economic, they also ally themselves with the spirit of religious fraternity, then their growth will be as sure, though possibly as slow, as the growth of the fraternal spirit among men.

Public industry is the most general form of socialism, and it is here that its political battles are to be fought. Political socialism demands that the government shall own the capital of the country, and that the proceeds of its use shall be divided according to principles of abstract justice. There is no harm in this as an ideal, but there is ruin in it as an immediate practical aim. It is not only best that we should tend-toward this ideal, but it is inevitable that we should do so; yet it is insane to try to reach it at once. Here is the dividing line between the false political socialism and the true; the one sees an ideal, and would force humanity to it through blood and fire; the other sees the ideal, and reverently studies and follows the course by which Providence is leading us toward it.

The intelligent attitude of the social philosopher is, therefore, that of recognizing the general direction which social development is taking, but avoiding that mental confusion which mistakes the socialistic ideal for an object of immediate practical effort. The most intelligent socialist will be the most zealous opponent of what commonly terms itself socialism. Facts sustain this inference; the German government, in its practical workings, is strongly socialistic; and yet it suppresses pronounced socialism by arbitrary methods; and there is no inconsistency in this. That Germany, by regular means, is becoming markedly socialistic, is a reason for resisting attempts to precipitate, and thus completely thwart the beneficial movement. Were theoretical socialism to be inaugurated in practice, practical socialism would be put backward a hundred years.

German governments own railroads, telegraph lines, forests, and mines; they conduct manufactures, maintain parcel posts, and do much of the banking business of the country. The functions of government the world over are increasing with all reasonable rapidity. While, therefore, socialistic Jacobinism may seek to destroy a government in order to precipitate its visionary schemes, intelligent socialism will uphold it and await the general growth of the movement with such contentment as it may.

The increase of the economic functions of the government is regarded, in this country, with apprehension, not so much because it is in itself undesirable, as on account of the practical difficulties to be surmounted before it can be safely accomplished. Given an untrustworthy government, and the less you commit to it the better, is a summary of the prevalent argument. It is not singular that immigrants from a country where the government, if oppressive, is honest and efficient, should be less conscious of the practical difficulties, and more impatient to secure the result in view, and that, from such material, a pronounced socialistic party should be organized. If the condition of our civil service is unfavorable to the adoption of the measures of political socialism, the federative character of our government is favorable to it. Cities, states, and the nation as a whole, may, at sometime, find themselves performing functions which, in the aggregate, equal those of the German government. We are crowded in this direction by a powerful vis a tergo, the increasing abuses of economic centralization, and it is only a question of time when the abuses of overgrown corporations controlling legislatures and making or marring the prosperity of cities and even states, at their sovereign pleasure, shall more than counterbalance the abuses which would arise from their assumption and management by the state.

One socialistic measure has attracted little attention in proportion to its importance, namely, prison industry. The employment of prisoners in industries conducted directly by the state government itself, is, perhaps, the most practicable and the most unquestionably beneficial of any of the measures of this nature. The socialistic ideal is realized in a great prison conducted in this manner; there is “labor applied to public resources,” and there is strict equity in the division of the profits. In such institutions all the profits, and more, go to the laborers. The system of letting prison labor, under contract, to private employers, neutralizes the benefits to be derived from this legitimate form of socialism, and is contrary alike to the principles of Political Economy and to those of morality.

Public work-houses for tramps would be an extension of the system, and would have the incalculable advantage of dissociating the tramp question from the general labor question. Such a measure ought to be highly satisfactory to most of the parties concerned; to the government, because its burden of watchfulness would be lessened; to the citizen, because he would be made more secure; and to the well meaning political socialist, because his party would be well rid of its most dangerous element. It would probably not be equally satisfactory to the reckless and criminal hangers-on in the socialist party; though, in consistency, it ought to be so, since it might have the effect of placing them in a commune under government auspices, the operation of which would be more regular and successful than that of any which they could hope of themselves to establish. The proposal of such a measure would test the honesty of declared political socialists; if well meaning they would advocate it; if desirous of confusion and plunder, they would oppose it.

If breadth of view is necessary anywhere, it is so in discussing the general socialistic tendency of modern life. No limiting of the vision to particular phases of the question is to be admitted. A narrow view sees the menacing attitude of socialistic Jacobinism, and steels itself to resist anything that calls itself by the dangerous name; a broader view will distinguish true socialism from false, and see that the best protection against the false is the natural progress of the true. Present institutions contain in themselves the germs of a progress that shall ultimately break the limitations of the existing system, and give us the only socialism that can be permanent or beneficial. In many ways capital is vesting itself in social organizations, instead of in individuals. Labor is organizing itself, private coöperation is increasing, and governments of every kind are assuming new economic functions. The true socialism is progressing, and the best way to make it progress more rapidly is to enact sufficient laws for the suppression of the false.

Socialism, in the broad sense, meets an imperative human want, and must grow surely, though not, as reformers are wont to estimate progress, rapidly. The prime condition of success in its growth is slowness; haste means all manner of violence and wrong. Only step by step can we hope to approach the social ideal which is beginning to reveal itself; impatience would place us farther away than ever.

The condition of permanence in socialistic changes is mental and moral progress. The permanence of republics has long been known to depend on these conditions; they are short-lived where the people are ignorant or bad. True socialism is economic republicanism, and it can come no sooner, stay no longer, and rise, in quality, no higher than intelligence and virtue among the people.

The beauty of the socialistic ideal is enough to captivate the intellect that fairly grasps it. It bursts on the view like an Italian landscape from the summit of an Alpine pass, and lures one down the dangerous declivity. Individualism appears to say, “Here is the world; take, every one, what you can get of it. Not too violently, not altogether unjustly, but, with this limitation, selfishly, let every man make his possessions as large as he may. For the strong there is much, and for his children more; for the weak there is little, and for his children less.”

True socialism appears to say, “Here is the world; take it as a family domain under a common father’s direction. Enjoy it as children, each according to his needs; labor as brethren, each according to his strength. Let justice supplant might in the distribution, so that, when there is abundance, all may participate, and when there is scarcity, all may share in the self-denial. If there is loss of independence, there will be gain of interdependence; he who thinks less for himself will think more for his brother. If there is loss of brute force gained in the rude struggle of competition, there is gain of moral power, acquired by the interchange of kindly offices.[“] The beautiful bond which scientists call altruism, but which the Bible terms by a better name, will bind the human family together as no other tie can bind them.

Sufferers under an actual system naturally look for deliverance and for a deliverer. The impression has prevailed among working men that a new device of some kind might free them from their difficulties. Ideal socialism seems to meet this expectation, and those who preach it as an immediate practical aim naturally receive a hearing. The way in which the old system is defended is often as repulsive as the new teaching is attractive. When one teacher bids the poor submit, and another bids them hope, they will not be long in choosing between them. Yet there is no royal road to general comfort. There is much to be gained by reverently studying the course of Providence, but comparatively little by inventing new schemes of society. The new dispensation is not coming with observation, and it has no particular apostles. The socialistic ideal itself is valuable, not when it is used to incite men to frantic attempts to reach it, but when, by giving definiteness to their intelligent hopes, it is made to lighten the moderate steps by which only they can expect to approach it.

Image Source: Amherst Yearbook Olio ’96 (New York, 1894), pp. 7-9. Picture above from frontispiece.

Categories
Bibliography Suggested Reading

Society for Political Education. Popular Economic Tracts. 1880-1891

 

 

During the decade of the 1880s the Society for Political Education founded by the independent Republican (“Mugwump”) Richard Rogers Bowker (1848-1933) published a series of popular works on politics and economics so that American voters might educate themselves concerning the great issues of their day. I came across this organization after checking up on David A. Wells who later endowed a prize in his name for works written at Harvard in political economy (a few past winners: Paul Samuelson, Robert Solow, Michael Spence, Peter Kenen, Deirdre McCloskey, Edward Chamberlin, Harry Dexter White). Wells was the head of the Society’s Finance Committee.

I became curious about Wells after reading in Joseph Dorfman’s The Economic Mind in American Civilization, Vol. 3, 1865-1918, pp. 81-82 that Wells attached a couple of conditions to his prize:

“The prizes ‘shall be paid in gold coin of standard weight and fineness,’ or in the form of a medal of gold of corresponding value. ‘No essay shall be considered which in any way advocates or defends the spoliation of property under form or process of law; or the restriction of commerce in times of peace by legislation, except for moral or sanitary purposes; or the enactment of usury laws; or the impairment of contracts by the debasement of coin; or the issue…by government of irredeemable notes…as a substitute for money.’”

This posting includes (i) an overview of Bowker and his Society for Political Education taken from his biography, (ii) front-and-back cover material describing the Society, its purpose and leadership and (iii) links to almost every single publication

One might regard the Society for Political Education as a counterpoint to William Rainey Harper’s (first president of the University of Chicago) Methodist summer school at Chautauqua where Richard Ely regularly taught his variant of popular economic doctrine.

 

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[Overview of R. R. Bowker’s Society for Political Education]

…It was clear to him [R. R. Bowker] that to get free trade and other desired reforms under the democratic system, it was eternally necessary not only to educate the voter but to perfect the machinery whereby the voter was able to register his will. To these ends he continued to work through his Society for Political Education and a half-dozen other reform organizations to inform and rally the average citizen, to promote ballot reform and civil service reform. In this he was, perhaps, most typically fulfilling the social-engineering mission of the scholar to which he had committed himself.

In directing the fortunes of the Society for Political Education which he had founded in 1880, Bowker had the continuous counsel of Putnam, the Society’s publisher, Wells, who undertook to raise funds for its program, and Richard Dugdale, its indefatigable secretary. Its basic purpose of educating the voter through inexpensive, sound reading matter was pushed without pause. Its Economic Tracts contained original contributions from Horace White, A. D. White, Talcott Williams, W. C. Ford, and Shepard; the second series of its Library of Political Education contained works by Blanqui, Jevons, Mill, Wells, and Herbert Spencer. In addition, the Society distributed gratuitously 1,700 copies of Henry George’s Progress and Poverty and an equal number of his Irish Question, as well as 1,500 copies of Atkinson’s pamphlet on “The Elements of National Prosperity.” It then planned an “Auxiliary Series” of tracts to be given away.

Dugdale’s death in 1883 was a great blow, but his work was ably taken up by Worthington C. Ford. In 1889 George lles, an energetic Canadian liberal with a strong interest in bibliography became the Society’s secretary. Tracts were planned to cover tariff, education, prison legislation, municipal reform, the Southern question, and Canadian relations. The Society’s last publication, issued in 1891, was, perhaps, its finest, The Reader’s Guide in Economic, Social, and Political Science. In this Bowker and lles collaborated with the assistance of twenty-five specialists, including E. R. A. Seligman, W. C. Ford, James Bryce, Gifford Pinchot, D. R. Dewey, D. A. Wells, Andrew D. White, and Horace White. The result was a comprehensive list, not confined to the writings of any one school of economics or one nation. The Reader’s Guide met with hearty response from both librarians and professors of economy, and by 1903 had to be reissued in a second and revised edition.

With such an admirable program of service and a membership fee of only fifty cents, the Society might have been expected to flourish, but it most emphatically did not. Nothing, perhaps, is more indicative of the basic lack of popular support for Bowker’s version of the liberal program than the fact that the Society’s membership never exceeded 1,000 during these years. By the end of 1890 the number of subscribers fell to 113, and income from the casual sale of its pamphlets did not exceed seventy dollars a year. lles felt that the field which the Society had entered as a pioneer was now supplied by such organizations as the American Economic Association and the new trend toward social essays in Century, Forum, and Harper’s magazines. It was therefore decided to close the Society’s books.

From Bowker’s own pen came several items to strengthen the cause of civic education. At the end of 1883 the Society published his first popular summary of economic principles, Of Work and Wealth. The little volume was dedicated to Richard Dugdale, acknowledged in particular its indebtedness to such economists as Walker, Jevons, and Henry George, and deliberately steered a commonsense course between the extremes of the Manchester school and the German school. For some time Bowker had felt the need of a simple presentation of elementary economic principles for the man in the street, and this effort was a very considerable success. Professor Johnson of Princeton reported that his students were “delighted” with it, President Hadley of Yale was enthusiastic, and Wells called it “exceedingly clever.”…

 

Source: Fleming, Edward McClung. R.R. Bowker: Militant Liberal. Norman: University of Oklahoma Press, pp. 219-220

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The Society for Political Education.
(ORGANIZED 1880.)

OBJECTS. — The Society was organized by citizens who believe that the success of our government depends on the active political influence of educated intelligence, and that parties are means, not ends. It is entirely non-partisan in its organization, and is not to be used for any other purpose than the awakening of an intelligent interest in government methods and purposes tending to restrain the abuse of parties and to promote party morality.

Among its organizers are numbered Democrats, Republicans, and Independents, who differ among themselves as to which party is best fitted to conduct the government, but who are in the main agreed as to the following propositions:

The right of each citizen to his free voice and vote must be upheld.
Office-holders must not control the suffrage.
The office should seek the man, and not the man the office.
Public service, in business positions, should depend solely on fitness and good behavior.
The crimes of bribery and corruption must be relentlessly punished.
Local issues should be independent of national parties.
Coins made unlimited legal tender must possess their face value as metal in the markets of the world.
Sound currency must have a metal basis, and all paper money must be convertible on demand.
Labor has a right to the highest wages it can earn, unhindered by public or private tyranny.
Trade has the right to the freest scope, unfettered by taxes, except for government expenses.
Corporations must be restricted from abuse of privilege.
Neither the public money nor the people’s land must be used to subsidize private enterprise.
A public opinion, wholesome and active, unhampered by machine control, is the true safeguard of popular institutions.
Persons who become members of the Society are not, however, required to endorse the above.

METHODS .— The Society proposes to carry out its objects by submitting from time to time to its members lists of books which it regards as desirable reading on current political and economic questions; by selecting annual courses of reading for its members; by supplying the books so selected at the smallest possible advance beyond actual cost; by furnishing and circulating, at a low price and in cheap form, sound economic and political literature in maintenance and illustration of the principles above announced as constituting the basis of its organization; and by assisting in the formation of reading and corresponding circles and clubs for discussing social, political, and economic questions.

ORGANIZATION. — The Society is to be managed by an Executive Committee of twenty-five persons, selected from different sections of the United States. At the end of the first year the Executive Committee is to resolve itself into three sections, holding office respectively one, two, and three years from that date, and at the expiration of the term of office of each section, the remaining two thirds of the Committee shall elect, by ballot, members to fill vacancies. The correspondence of the Society is to be divided among five secretaries, one each for the East, the Northwest, the Southeast, the Southwest, and the Pacific Slope.

MEMBERSHIP. — Active Members are such persons as will pledge themselves to read the Constitution of the United States, and that of the State in which they reside ; who will agree to read at least one of the annual courses as included in the Library of Political Education, and who will pay an annual fee of 50 cents (which may be forwarded in postage-stamps), entitling the member to receive the tracts and lists published by the Society during the year.

Parents, guardians, or teachers will be considered as having fulfilled the above obligations if they make their children, wards, or pupils follow the prescribed course of reading.

In order to make the membership widespread, and especially to enable students in the public schools and colleges to take part in the Society, the annual fee for Active Members has been made so small that the proceeds are inadequate to carry out the objects of the Society. To provide for the resulting deficiency, the Executive Committee has established a special membership for such public-spirited persons as wish to promote political and economic education, as follows: —

Any person may become a CO-OPERATING Member on the annual payment of $5.00 or more, which shall entitle such member to receive the tracts and lists published by the Society, and to nominate two Fellowship Members. To persons so nominated the Secretary will send the series of Economic Tracts for 1880-81, stating that they are presented through the courtesy of such Coöperating Member.

FIRST YEAR’S WORK, 1880-81. — During the past year the Society has received fees from one thousand five hundred members, of whom one hundred and seventy-five are Coöperating Members, and one hundred and five Lady Members. There have also been seven Auxiliary Societies established, of which two are in connection with colleges or schools.

For the first series of the Library of Political Education, the following elementary works were selected for the year’s course of reading :

  1. Politics for Young Americans, by Chas. Nordhoff. (Including the Constitution of the United States, etc.) Harper & Bros. [Copyr. 1875.] 200 pp., 75 cents.
  2. History of American Politics by Alex. Johnston.  Henry Holt & Co. [Copyr. 1879.] 12×274 pp., 75 cents.
  3. Introduction to Political Economy, by Prof. A. L. Perry. Chas. Scribner’s Sons. [Copyr. 1877.] 348 pp., $1.50.
  4. Alphabet in Finance, by Graham McAdam. G. P. Putnam’s Sons. [Copyr. 1876.] 22×210 pp., $1.25.

The price of the set of four books of the first series, delivered at any post-office in the United States, will be $3.25. (If bought separately, in the publishers’ editions, these volumes would cost $4.25,) The price of the Society’s edition of the second series (the three volumes of which are issued by the publishers at $7.00) will be $5.00.

If any member cannot procure these books from the local booksellers, he should address Messrs. G. P. Putnam’s Sons, 27 and 29 West 23d Street, New York; Jansen, McClurg & Co., 119 State Street, Chicago ; or W. B. Clarke & Carruth, 340 Washington Street, Boston, Mass., who are the publishing agents of the Society.

The official year begins on the 1st of January.

Letters of inquiry should enclose return postage.

Money should be sent by draft, postal order, or registered letter to the Secretary.

 

EXECUTIVE COMMITTEE.

Finance Committee:
Hon. David A. Wells, Norwich, Conn.; Geo. S. Coe, New York City; Horace White, New York City.

E. M. Shepard, Treasurer (120 Broadway), office address, 4 Morton St.,
R. L. Dugdale, Secretary for the East, 4 Morton St., N. Y. City.
Edwin Burritt Smith, Secretary for the Northwest, 142 Dearborn St., Chicago, Ill.
B. R. Forman, Secretary for the Southwest, P. O. Box 2415, New Orleans, La.
F. W. Dawson, Secretary for the Southeast, P. O. Box D 5, Charleston, S. C.
W. W. Crane, Jr., Secretary for the Pacific Slope, P. O. Box 915, Oakland, Cal.

Prof. W. G. Sumner, Yale College, New Haven, Ct.
Charles Francis Adams, Jr., Boston, Mass.
Geo. Haven Putnam, New York City.
R. R. Bowker, New York City.
A. Sydney Biddle, Philadelphia, Pa.
Jno. Watts Kearny, Louisville, Ky.
Worthington C. Ford, Brooklyn, N. Y.
Horace Rublee, Milwaukee, Wis.
Archibald Mitchell, New Orleans, La.
Franklin MacVeagh, Chicago, Ill.
Gen. Bradley Johnson, Baltimore, Md.
Robert P. Porter, New York City.
John H. Ames, Lincoln, Neb.
Geo. Mason, Galveston, Texas.
Peter Hamilton, Mobile, Ala.
E. D. Barbour, Boston, Mass.
M. L. Scudder, Jr., Chicago, Ill.

The following Economic Tracts have been issued during the year (series 1880-81):

  1. What is a Bank ? What Services does it Perform?” by Edward Atkinson, of Boston. Price 10 cents.
  1. Political Economy and Political Science: a priced and classified list of books on political economy, taxation, currency, land tenure, free trade and protection, the Constitution of the United States, civil service, co-operation, etc., compiled by Prof. W. G. Sumner, of Yale College, David A. Wells, W. E. Foster, R. L. Dugdale, and G. H. Putnam. Price, 25 cents.
  1. Present Political and Economic Issues: a collection of questions for debate, and subjects for essays on current topics in American politics; with an appendix of questions proposed for discussion before the Political Economy Club of London, by J. Stuart Mill, George Grote, and others; and questions debated by the Société d’ Économie Politique of Paris. Price 10 cents.
  1. The Usury Question: comprising an abridgment of the famous essays of Jeremy Bentham and the letters of John Calvin; the speech of the Hon. Richard H. Dana, Jr., before the Massachusetts Legislature; a summary of the results of the present usury laws of the United States, by the Hon. David A. Wells ; and a short bibliography on the subject of interest. Price, 25 cents.

There have been six thousand of these Economic Tracts distributed, every member receiving a set of the series for his membership fee. (These tracts may still be obtained of the Secretary at the prices named, or by forwarding 50 cents for the series.)

A series of tracts will be published and distributed to members during 1882 as in 1880-81, the subjects of which will be announced from time to time.

The Executive Committee has selected the following books for the course of reading for 1882, which will constitute the second series of the LIBRARY OF POLITICAL EDUCATION:

 

A History of Political Economy in Europe, by Jérôme-Adolphe Blanqui; translated by Miss Emily J. Leonard. 628 pp., $3.50.

Money and the Mechanism of Exchange, by J. Stanley Jevons. 402 pp., $1.75.

On Liberty, by John Stuart Mill, 204 pp., $1.50.

 

Members who join for the year 1882 may read either the first or the second series of the Library, but the Committee recommends them to begin with the first series, unless they have already read the books comprised in it.

In order to enable persons in places where no public library is accessible, to procure, at a reduced rate, the volumes recommended by the Executive Committee for the annual courses of reading, the Committee has arranged for special editions of these in uniform binding, with the imprint of the Society upon the cover, which will be issued in annual series under the general title of the Library of Political Education, and can be supplied only in sets.

 

Source: From the front and back material included with Alphonse Courtois, Political Economy in One Lesson. Translated from the Journal des Économistes by Worthington C. Ford. New York: The Society for Political Education, Economic Tract No. V., 1882.

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ECONOMIC TRACTS
The Society for Political Education.

  1. Atkinson, Edward. What is a Bank? What Service does a Bank Perform? A Lecture Given before the Finance Club of Harvard University, March, 1880.
  2. Sumner, W. G. et al. Political Economy and Political Science: A Priced and Classified List of Books…, 1881.
  3. Subjects and Questions pertaining to Political Economy, Constitutional Law, the Theory and Administration of Government, and Current Politics. Recommended to Students as Suitable for Special Investigation or as Topics for Essay-Writing and Debate. With an Appendix of Questions discussed by the Political Economy Club of London and the Société d’Économie Politique of Paris. 1881.
    Enlarged and Revised Reissue of Economic Tract No. III. Questions for Debate in Politics and Economics, with Subjects for Essays and Terms for Definition (1889).
  4. Wells, David A. The Usury Question
  5. Courtois, Alphonse. Political Economy in One Lesson. Translated from the Journal des Économistes by Worthington C. Ford. 1882.
  6. White, Horace. Money and Its Substitutes. 1882.
  7. White, A. D. Paper Money in France. 1882. [1876Revised edition, 1896]
  8. Whitridge, Frederick W. The Caucus System.
  9. Canfield, James H. Taxation. A Plain Talk for Plain People.
  10. Bowker, R. R. Of Work and Wealth: A Summary of Economics. 1883.
  11. Green, George Walton. Repudiation.
  12. Shepard, E. M. The Work of a Social Teacher: Memorial of Richard L. Dugdale.
  13. Ford, W. C. The Standard Silver Dollar and the Coinage Law of 1878.
  14. Shepard, Edward M. The Competitive Test and the Civil Service of States and Cities.
  15. Richardson, H. W. The Standard Dollar.
  16. Giffen, Robert. The Progress of the Working Classes in the Last Half Century.
  17. Foster, W. E. References to the History of Presidential Administrations—1780-1885.
  18. Hall, C. H. Patriotism and National Defence.
  19. Atkinson, E. The Railway, the Farmer, and the Public. [reprint: 1888]
  20. Weeks, Joseph D. Labor Differences and Their Settlement.
  21. Bowker, R. R. Primer for Political Education.
  22. Bowker, R. R. Civil Service Examinations. 1886.
  23. Bayles, J. C. The Shop Council.
  24. Williams, Talcott. Labor a Hundred Years Ago.
  25. Electoral Reform, with the Massachusetts Ballot Reform Act, and New York (Saxton) Bill.
  26. Iles, George. The Liquor Question in Politics. 1889.
  27. Bowker, R. R. and George Iles. The Reader’s Guide in Economic, Social and Political Science being a Classified Bibliography, American, English, French and German, with Descriptive Notes, Author, Title and Subject Index, Courses of Reading, College Courses, etc., 1891
  28. Questions for Debate in Politics and Economics, with Subjects for Essays and terms for Definition. An Enlarged and Revised Reissue of Economic Tract No. III, 1889.

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THE LIBRARY OF POLITICAL EDUCATION
The Society for Political Education.

 

Nordhoff, Charles. Politics for Young Americans. Harper & Bros., 1875.

[Revised, 1876Revised, 1899]

Johnston, Alex. History of American Politics. Henry Holt & Co., 1879.

[Second edition, 1882; Third edition, 1890Fifth edition (with William M. Sloane), 1901;  Johnston and Sloane continued by Winthrop More Daniels, 1902

Perry, A. L. Introduction to Political Economy. Chas. Scribner’s Sons, 1877.

[Second edition, 1880]

McAdam, Graham. Alphabet in Finance. G. P. Putnam’s Sons, 1876.

Categories
Exam Questions Harvard Undergraduate

Harvard. Labor Economics and Social Reform Divisional Exam, 1939

This posting offers the special examination questions for labor economics and social reform. Socialist themes can be seen to have played a much greater role in 1939 than later in the 20th century.

Concentrators in Economics will have to pass in the spring their Junior year a general examination on the department of Economics, and in the spring of their Senior year an examination correlating Economics with either History or Government (this correlating exam may be abolished by 1942), and a third one on the student’s special field, which is chosen from a list of eleven, including economic theory, economic history, money and banking, industry, public utilities, public finance, labor problems, international economics, policies and agriculture.
Courses in allied fields, including Philosophy, Mathematics, History, Government, and Sociology, are suggested by the department for each of the special fields. In addition, Geography 1 is recommended in connection with international policies or agriculture.
[SourceHarvard Crimson, May 31, 1938]

A printed copy of questions for twelve A.B. examinations in economics at Harvard for the academic year 1938-39 can be found in the Lloyd A. Metzler papers at Duke’s Economists’ Papers Project. 

Economic Theory,
Economic History Since 1750,
Money and Finance,
Market Organization and Control,
Labor Economics and Social Reform.

  • One of the Six Correlation Examinations given to Honors Candidates. (May 12, 1939; 3 hours)

Economic History of Western Europe since 1750,
American Economic History,
History of Political and Economic Thought,
Public Administration and Finance,
Government Regulation of Industry,
Mathematical Economic Theory.

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If you find this posting interesting, here is the complete list of “artifacts” from the history of economics I have assembled. You can subscribe to Economics in the Rear-View Mirror below. There is also an opportunity for comment following each posting….

 

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DIVISION OF HISTORY, GOVERNMENT, AND ECONOMICS

DIVISION SPECIAL EXAMINATION
Labor Economics and Social Reform

(Three hours)

 

PART I
(About one hour)

  1. Write an essay on one of the following topics:

(a) wage theory and collective bargaining,
(b) the functions and ideal qualifications of labor-leaders in present-day America, and your appraisals of several of the men now prominent in this capacity,
(c) the rights and duties of labor and employers,
(d) mobility of labor and the national income and its distribution,
(e) the essentials of an adequate, sound, and feasible program for social security,
(f) the possibilities, methods, and probable results of several types of governmental action to lessen inequalities in the distribution of income,
(g) could a socialist society be a liberal and democratic society?
(h) is there any socialism in German National Socialism?
(i) class-struggle in the United States,
(j) the effects of differences of nationality, race, and religion among American workers on the American labor movement,
(k) the effects of capitalism, and the possible effects of socialism, on population growth,
(l) the role of Marxism in the labor movement, in Europe and in America.

Part II
(About one hour)

Answer two questions. Candidates for honors must answer one starred question.

  1. (*) “The industrial system of the ‘machine age’ can give the working population reasonably full employment and high wages only in the periods during which a high rate of technical and economic progress is maintained.”
  2. (*) Discuss the effects upon each other of phases of the business cycle and trade union policies, and the possibilities of the latter as a means of mitigating the cycle.
  3. Discuss legal limitation of hours of work by individual state with respect to (a) questions of constitutionality and (b) possible economic consequences.
  4. Discuss the merits of the proposal for a government-guaranteed “annual wage” in the building trades.
  5. (*) Explain and discuss the main economic problems created in a society by the effects of the declining birth-rate on the distribution of the population among different age-groups.
  6. (*) “The confident belief of reformers bent on equalizing incomes, that inequalities of economic success are the fault of society and not the result of differences of innate ability, cannot be justified in the face of the relevant evidence and results of common-sense reasoning.”
  7. Describe the principal features of the development of workmen’s compensation in the United States or in one European country.
  8. Discuss the achievements and effects of the P. W. A. or of the W. P. A.
  9. (*) “The organization and mechanism of the socialist economy is almost identical with that of monopolistic corporate capitalism. It is the results which would differ.”
  10. (*) If a socialist society gave all its members either equal incomes, or incomes proportioned to their needs or to their sacrifices rather than to their productive contributions, do you think that its policy in this respect would interfere with attainment of the most efficient allocation and use of all labor resources? Explain.
  11. “It is evident that mankind can neither stand pat with the aging Herbert Spencer, nor move on, except to its ruin, with the young men in colored shirts; it’s only hope lies in the creation of a liberal capitalism.”
  12. Explain and support your opinion of the view that in this country the Communists and all “agitators” on the far-left are unlikely to obtain any ends of their own and are likely, instead, to goad or frighten the business men into setting up a regime of American fascism.

 

Part III
(About one hour)

Answer two questions.

  1. “The trade union seems to be the only institution which can prepare us for, or aid us in, social change.”
  2. “The labor movement owes the support of the rank-and-file of the workers who join it, much less to intelligent pursuit of their own economic interests by the latter as individuals, than to their emotional capacities for blind devotion to an ideology and fighting cause which is to them a class religion.”
  3. Compare the functions of trade unions under capitalism with the functions they might have in a socialist society.
  4. In what order of importance do you rank the following objectives of social reform for the benefit of labor: higher real wages; full and steady employment and general security; “industrial democracy” or participation by the workers in the “control” of industry? – Do you think all three objectives are mutually consistent? Explain.
  5. “The goal of intelligent social reform is neither ‘freedom’ of the businessmen to do as they please, nor of government ‘control’ of them reflecting merely the opposing interests and moral sentiments of other people; but is the co-operation of all citizens under expert guidance based on scientific knowledge of economic geography, of our industrial technology and its possibilities, and of the needs and abilities of all sectors of the population.”
  6. What is to be learned from the experience of N. R. A. in the United States and of the Front Populaire in France about the possibility of increasing real wages by raising money wages?
  7. “The increasing organization of interest groups and the resurgent resurgence of mercantilist state regulation of international and domestic markets promise an end of the elaborate economic organization and division of labor and an end of political freedom as well.”
  8. “The traditional view has been that it is consumers who suffer the chief losses from monopoly, but the fact is that the principle losses fall on labor.”
  9. What should be the attitude of consistent Communists in this country at the present time toward such popular economic and monetary theories as those of the advocates of the Townsend Plan? Explain.

May 10, 1939.

 

Source: David M. Rubenstein Rare Book & Manuscript Library, Duke University. Lloyd A. Metzler Papers, Box 7; [Harvard University], Division of History, Government and Economics, Division Examinations for the Degree of A.B., 1938-39.

 

Categories
Bibliography

Political Economy Books. Top-Ten Sellers in the U.S., 1876

Joseph Dorfman in Volume 3 (1865-1918) of his The Economic Mind in American Civilization (New York: 1949, p. 81) cites the results of a Publishers’ Weekly survey from 1876 that was used to determine a “top ten list” of books on political economy in the U.S. from the perspective of book sellers.

People in the book trade were asked to send in their ordered lists of ten titles. The entry judged closest to “the popular vote” would be awarded a cash prize.

The mechanics of the vote tallying are not very clear. I certainly would have employed a Borda voting procedure  but this does not appear to be what was done. My guess is that a two-stage process was used. Every book was given one vote each time it appeared on somebody’s list of ten. In the case of ties, e.g. Mill and Smith were on all thirty top-ten lists entered, the prize judge counted the number of times Mill was ranked above Smith to break the tie. Thus the maximum number of points awarded to an entry was 194, meaning of the 300 (thirty times ten) entries 194 were for the books elected to the popular vote top-ten list and 106 entries were for books that did not make the cut. Next each list submitted would be awarded the stage-one vote count for those books included in their list that were on the popular-vote top-ten. Best you could do, as the winner in this case did, was to name all top-ten books correctly.

I’ve tried to find links (which this blog highlights in red) to the economics books mentioned and I was indeed able to get many links to the editions actually referred to in the lists below. However, I have made substitutions, even taking later editions, when a cursory search of archive.org and hathitrust.org did not find the particular editions of the books referred to in the Publishers’ Weekly Quiz lists.

One title, Butt’s Protection and Free Trade, I have been unable to find at all to find.

_____________________

 

PRIZE QUESTIONS.

Which are our standard books; or, what works and editions should form the nucleus of a well-stocked bookstore to-day? This question, of the most vital importance to every one engaged in the production and sale of books, it is proposed to put before the trade in a new department of the Publishers’ Weekly, for which the co-operation of all our subscribers is cordially invited. The material is so extensive that, should our plan meet with the favor of our subscribers, this department may become a permanent and not the least useful feature of the Weekly. The plan for the present is to elicit answers from practical and experienced members of the trade, to a series of test questions as to which are the most standard and salable books in each branch of literature. A prize of $5 will be awarded for that answer which includes the greatest number of works on which competitors generally agree, or which, in the judgment of the editor, may otherwise be most fairly representative. This list will be published in the Weekly, possibly with the number of concurring competitors prefixed to each book, showing thereby the comparative estimation in which each book is held. Thus, in an entertaining and interesting manner, booksellers as well as book-buyers may profit from a general exchange of opinions and comparing of notes, a method which later may be applied to other questions of interest to the book trade and associated branches. Succeeding numbers of the Weekly will contain new questions, and the answers to each will be published four weeks from publication of the question.

 

Source: The Publishers’ Weekly. Vol. IX, No. 209, January 15, 1876, p. 57.

_____________________

 

PRIZE QUESTION No. 3.

Which are the most salable works on political economy?

Give ten titles in the following shape:

Smith, Adam, Wealth of Nations [specify edition, size, price, publisher, as usual].

RULES FOR COMPETITORS.

  1. The object of the questions is to elicit answers as to which books and editions have, independent of local or ephemeral interest, become standard or popular works in the American market, hence safe stock for investment.
  2. A prize of $5 will be awarded for that answer which includes the greatest number of works on which competitors generally agree, or which, in the judgment of the editor, may otherwise be most fairly representative.
  3. Every subscriber and every employee of a subscriber individually are entitled to compete.
  4. The answers shall consist of a list of works on a given topic. The short title is sufficient, but number of volumes, size, price, and name of publisher must be invariably given.
  5. The titles should be arranged according to the popularity each work holds in the opinion of the competitor.
  6. The titles must be written legibly with ink, on one side of the paper only, foolscap preferred, each title in separate paragraph, with space between titles for cutting through with scissors.
  7. The list must not contain a greater number of titles than is demanded in the question.
  8. Each list must be headed by the number of the Prize Question, and signed with full address of competitor.
  9. If several competitors should present lists of equal claim to the prize, it shall be awarded by lot.
  10. The name of the successful competitor shall be published with his list, and the amount of the prize remitted immediately after publication.
  11. The result of the answers will be published four weeks from publication of the question.
  12. All communications should be addressed. Editor Publishers’ Weekly, P. O. Box, 4295, New-York.

These rules are subject to amendment whenever the Editor finds it expedient.

 

Source: The Publishers’ Weekly. Vol. IX, No. 214, February 19, 1876, p. 229.

_____________________

THE PRIZE QUESTION IN POLITICAL ECONOMY.

The Prize Question (No. 3) in Political Economy has called forth more lists than any previous question. This is partly to be explained, we have no doubt, by the fresh interest awakened in the subject by the present political situation and the fact that the Presidential election [Rutherford B. Hayes (R, Ohio) vs. Samuel J. Tilden (D, New York)] , occurring this year, promises to turn on the questions associated with this class of subject. In accordance with this interest, we have gotten up the order-list on finance and political economy given in our advertising pages last week, and which is to be repeated fortnightly in alternation with the Centennial page. We trust booksellers will not fail to make use of this. There are other indications of the general interest, and we have just at hand a neat catalogue of works on these subjects, from Robert Clarke & Co., of Cincinnati.

In political economy 30 lists have been submitted. It is an extraordinary coincidence that the list of the successful competitor, who is an old friend of our readers—Mr. H. W. Hagemann, with D. Appleton & Co.—gets the highest possible number, 194, since it is identical in its titles, though not in their arrangement, with the list by popular vote. We therefore award him a double prize, of $10. The following is the list:

PRIZE LIST (No. 3) IN POLITICAL ECONOMY.
Also, LIST BY POPULAR VOTE.

1.

Mill, John Stuart Principles of Political Economy[Vol IVol. II] 12°, 2 vols., $4, Appleton

30

2.

Smith, Adam The Wealth of Nations 12°, $2.50, Putnam

30

3.

Walker, Amasa The Science of Wealth 12°, $1.50, Lippincott

17

4.

Perry, Arthur Latham Elements of Polit. –Econ. cr. 8°, $2.50, Scribner

23

5.

Bowen, Francis American Polit. Econ. cr. 8°, $2.50, Scribner

13

6.

Fawcett, Henry Manual of Polit. Econ. cr. 8°, $3.50, Macmillan

19

7.

Jevons, W. Stanley The Theory of Polit. Econ. 8°, $3.50, Macmillan

11

8.

Wayland, Francis Elements of Polit. Econ. 12°, $1.75, Sheldon.

17

9.

Cairnes, J. E Some Leading Principles of Polit. Econ. cr. 8°, $2.50, Harper

20

10.

Greeley, Horace, Essays on the Science of Polit. Econ. 16°, $1.50, Osgood

14

194

 

The following shows the popular vote down to three:

Mill’s Principles of Political Economy.
[Vol I; Vol. II]

30

(2 v., 8°, Appleton, 18; 1 v., cr. 8°, H. Holt & Co., Lee & Shepard, and Little, Brown & Co., 12.)

Smith’s Wealth of Nations

30

(1 v., 12°, Putnam, 17; 1 v., 8°, Scribner, Worthington, 7; 2 v., 8°, Macmillan, 6.)

Perry’s Elements of Political Economy Scribner

23

Cairnes’ Leading Principles of Polit. Econ. Macmillan

20

Fawcett’s Manual of Political Economy Macmillan

19

Walker’s Science of Wealth

17

(12°, Lippincott, 13; 8°, Little, Brown & Co., 4)

Wayland’s Elements of Political Economy Sheldon

17

Greeley’s Essays on Political Economy Osgood

14

Bowen’s American Political Economy Scribner

13

Jevons’ Theory of Political Economy Macmillan

11

_______________

Sumner’s History of American Currency Holt

9

Jevons’ Science of Money [sic] Appleton

8

Bastiat’s Essays on Political Economy Putnam

7

Cairnes’ Character and Logical Method of Political Economy Harper

7

Fawcett’s (Mrs.) Polit. Econ. for Beginners Macmillan

5

McCulloch’s Principles of Political Economy Scribner

5

Mason and Lalor’s Primer of Political Economy Jansen, McC. & Co.

5

Carey’s Social Science [Vol I; Vol II; Vol III] Lippincott

4

Price’s (Bonamy) Currency and Banking Appleton

4

 

The following gives the lower counts:

3. Bascom’s, List’s, and Say’s Works on Political Economy

2. Bagehot’s Lombard Street; Bastiat’s Sophisms and Protection; Butts’ Protection and Free Trade; Cairnes’ Essays on Political Economy; Fawcett’s Essays and Lectures on Political and Social Subjects.

The second list is that of Mr. J. B. Fredricks, also with D. Appleton & Co., whose number is 186. His list is identical in its entries with that of Mr. Hagemann, with the exception of one book; he lost the prize by citing Carey’s Political [sic] Science, counting but 4, in place of Jevons’ Political Economy, counting 11. That both should be of the same house is a curious co- incidence, and a practical compliment to the establishment, since it is to be presumed, of course, that they worked independently of each other. The third list is that of Mr. Jas. S. Wynkoop, of R. G. Wynkoop & Co., Syracuse, counting 181. His list is also identical with Mr. Hagemann’s, except that it replaces Walker’s “Science of Wealth,” counting 17, with List’s “National System,” counting 3. The highest count after this is 179; the lowest count 102.

Several books were cited which did not properly come within the specific subject. These were, aside from single citations, Nordhoff’s Politics for Young Americans, 12; Townsend’s Civil Government, 4; Lieber’s Civil Liberty, 3; Lieber’s Political Ethics, 2—which come rather within the department of Political or Governmental Science, which, as well as Finance proper, will form the subject of a future question. These were not involved in any of the higher lists, so that the results would not have been altered; but they might have been, and we point out the facts to warn future contestants to confine themselves carefully to the specific subject in hand.

 

Source: The Publishers’ Weekly. Vol IX, No. 218, March 18, 1876, pp. 376-377.

 

Categories
Columbia Exam Questions Syllabus Uncategorized

Columbia. Junior Year Political Economy. Mayo-Smith, 1880

Yesterday while trawling through the Hathitrust digital library, I came across a collection published in 1882, Examination Papers Used During the Years 1877-1882 in Harvard, Yale, Columbia, Cornell, Amherst and Williams Colleges. (The link takes you to the download page at archive.org)

Hoping for some political economic gold, I paged through the collection that appeared mostly focused on entrance examinations for Latin, Greek, mathematics etc., but eventually I stumbled upon a single examination in political economy for a junior year course (1880) at Columbia College.

The last question of that exam explicitly quotes from the course textbook so I went over to Google Books and searched the phrase “to secure a delusive benefit to individuals”. Sure enough, I could identify the textbook in question as the Manual of Political Economy for Schools and Colleges (3rd ed. 1876) by James Edwin Thorold Rogers. 

Now drunk on Google Books power, I text-searched Rogers’ Manual to locate the pages for answers to all the questions on the 1880 exam. You will find the corresponding page numbers in square brackets following the questions transcribed below…You’re welcome.

The course was taught by Richmond Mayo-Smith as seen in the Columbia College Handbook of Information 1880. I have included descriptive information about the junior and senior classes in history and political economy found there.

________________________________

[From the Columbia College Handbook of Information 1880]

SCHOOL OF POLITICAL SCIENCE.

PROFESSORS

John W. Burgess, A. M.,
Constitutional and International History and Law
Richmond M. Smith, A.M.,
Political Economy and Social Science (Adjunct).
Archibald Alexander, A.M., Ph.D.,
Philosophy (Adjunct).

OTHER OFFICERS

E. Munroe Smith, LL.B., J.U.D:,
Lecturer on the Roman Law
Clifford R. Bateman, LL.B.,
Lecturer on Administrative Law.

[…]

HISTORY, POLITICAL SCIENCE, AND INTERNATIONAL LAW.

SOPHOMORE CLASS.

1ST TERM. —German History.
2D TERM.—French History.

JUNIOR CLASS.

1ST TERM—English History.
2D TERM—Political Economy.

SENIOR CLASS.

1ST TERM—Constitutional History of the United States.
2D TERM—Constitutional Law of the United States.
ELECTIVE BOTH TERMS—Political Economy

 

History.—During Sophomore and the first half of Junior year the course in history occupies two hours per week. Some text-book is used, usually those of Freeman’s Historical course for German and French history, and Green’s Short History of the English People for English history.

The instruction to the Senior Class occupies also two hours per week throughout the year, and embraces the following subjects :

I. Character and Constitution of the Colonial Governments in North America; their relation to the English Crown and Parliament; and their history to the Declaration of Independence;

II. Character and Constitution of the Continental Congress as a Revolutionary Government; its relation to the State governments and to the people of the States as a central government ; and the history of its supersedure by the Confederate form.

III. Character and Constitution of the Confederacy as a central authority ; its relation to State governments and to the individual; the historical consequence of its defects and weaknesses, and its final supersedure by the Federal form.

IV. History of the Formation and Adoption of the Federal Constitution; nature and powers of the government which it established; its relation to the State governments and the individual citizen.

V. Interpretation of the Provisions of the Federal Constitution.

VI. History of the Development of the Federal Constitution from its adoption to the present time.

The text and reference books used in connection with this course are: Hildreth, History of the United States; Bancroft, History of the United States; Curtis, History of the Constitution; The Federalist; Story, Constitutional Law; Pomeroy, Constitutional Law; Von Holst, Constitution and Democracy in the United States; Benton, Thirty Years’ View; Jennings, Eighty Years of Republican Government in the United States; Fisher, Trial of the Constitution; Decisions of the United States Supreme Court upon all constitutional questions.

 

Political Economy—There are two courses in Political Economy. During the second term of Junior year it is required from all students of that class. A systematic outline of the science is given, generally with the use of a text-book, either Fawcett’s or Rogers’s Manual of Political Economy.

[Fawcett, Henry. Manual of Political Economy1st ed., 18632nd ed., 18653rd ed., 18694th ed., revised and enlarged 18745th ed., revised and enlarged 1876; 6th ed., 1883;  7th ed., 1888;  8th ed., 1907.

Rogers, James Edwin Thorold. A Manual of Political Economy for Schools and CollegesFirst Edition, 1868Second edition, revised, 1869; Third edition revised, 1876.]

Political Economy may be elected by the students of the Senior Class, two hours per week throughout the year. Instruction is given by lectures on the following topics:

Systems of Land Tenure, past and present, in different countries, and their economic and social effects; Science of Finance, including a consideration of Money, Paper Money, Banking, and Taxation; Financial History and present situation of England, Germany, France, and the United States. All these topics are treated historically as well as critically; and with reference to the economic development in the History of Civilization.

Three or four theses on topics assigned by the professor are required from students of this class, To furnish these students with facilities for such work, besides the books in the college library, a special library of works in the department of Political Economy has been purchased and is for the exclusive use of the students of this class.

 

Source: Columbia College. Handbook of Information as to the Course of Instruction, etc., etc. New York: 1880, pp. x, 41-43.

________________________________

[Examination Questions in Political Economy 1880]

COLUMBIA COLLEGE
POLITICAL ECONOMY

JUNIOR CLASS, 1880.

[Page references to Rogers’ Manual of Political Economy, 3rd ed. 1876]

  1. Give a history of the English Poor Laws. [p. 121 ff.]
  2. What do you mean by Co-operation? What are the supposed advantages to the laborer? Explain the system of the Rochdale Equitable Pioneers [pp. 135-137] and of the Schultze-Delitsch Credit-Banks [p. 106-109].
  3. What determines the rate of wages of labor, and what effect does the customary food of laborers have on their wages? [p. 65]
  4. Explain the following sentence: “It will be clear that the machinery of a Trade’s Union cannot increase wages by depressing the profits of capital.” [p. 90]
  5. Explain and illustrate the following: “Banks of issue find it possible to circulate a far larger amount of paper than the gold on which the paper is based.” What effect does the abstraction of gold have in such a case? [pp. 43 ff.]
  6. What is meant by an income tax; on what part of the income should it be levied and why? [pp. 278-281]
  7. Explain the origin of the Irish cottier system of land tenure, its evils and the proposed remedy. [pp. 175 ff.]
  8. Explain the following sentences from the text book:
    “It (Protection) inflicts actual suffering or inconvenience on the public in order to secure a delusive benefit to individuals.” “It will be clear also that the Protection cannot stimulate general industry.” “In fact, whenever it (the state) protects particular kinds of labor it diminishes capital.” “Every country enjoys a natural protection to its manufactures.” [pp. 234-235]

 

Source: Harry Thurston Peck (ed.), Examination Papers Used During the Years 1877-1882 in Harvard, Yale, Columbia, Cornell, Amherst and Williams Colleges. New York: Gilliss Brothers, 1882, p. 57-58.

Image Source:  University and their Sons. History, Influence and Characteristics of American Universities with Biographical Sketches and Portraits of Alumni and Recipients of Honorary Degrees. Editor-in-chief, General Joshua L. Chamberlain, LL.D.  Boston: R. Herdon Company.  Vol. 2, 1899, pp. 582.

Categories
Uncategorized

Correcting the last posting: the year is 1912

For the subscribers to Economics in the Rear-View Mirror. Misprints happen, e.g. last posting (now corrected). The nice thing about the blog is that it allows me to correct mistakes, just a warning that what you get in your email is not necessarily the final, corrected, revised, augmented version. It is worth checking back if a particular posting is important enough to you to want to use.

Categories
Harvard Regulations

Harvard Economics Department Votes on Course Rules, 1912

Votes 1, 2 and 3 taken by the Harvard economics department in the Spring of 1912 provide a few details how the courses designated “Group Two: For graduates and undergraduates” were to govern the admission of undergraduates and the differential course requirements for the two types of students.

_______________________________

 

HARVARD UNIVERSITY
(INTERDEPARTMENTAL CORRESPONDENCE SHEET)

Cambridge, Massachusetts
May 8, 1912

Dear Lawrence:

You may be interested in certain votes recently passed by our Department. They are part of a general movement for stiffening our instruction and discipline. With reference to the fifth vote, I may add that we have it in mind to arrange next year for some systematic visiting of our courses for undergraduates (very likely by Hanus) with a view to getting suggestions. The sixth vote (and its corollaries) was intended to give instructors a defense against being pestered by requests for postponements on the part of undergraduates.

Sincerely yours,

[signed]

F. W. Taussig

President A. Lawrence Lowell.

 

[Brief biography of Professor Paul Henry Hanus (1855-1941), Chair of Harvard’s Division of Education, 1906-1912 ]

____________________________

 

HARVARD UNIVERSITY
(INTERDEPARTMENTAL CORRESPONDENCE SHEET)

[Carbon copy]

 

Cambridge, Massachusetts

VOTES PASSED BY THE DEPARTMENT OF ECONOMICS [pencil: April + May 1912]

  1. That such undergraduates only as are candidates for honors in the Division, and are in their last year of undergraduate work, shall be admitted to courses primarily for graduates.
  2. That graduate students enrolled in courses of the Second Group (for graduates and undergraduates) shall be exempt from all tests except the mid-year and final examinations, but shall be expected to do additional work, as may be arranged by the several instructors.
  3. That in those courses of this Second Group which meet ordinarily but twice a week, the instructor shall hold conferences at least once a fortnight with the graduate students taking the courses.
  4. That the scope and method of instruction in courses of the First and Second Groups shall be matters for Departmental consideration.
  5. That the Department shall arrange for adequate inspection of courses of the First and Second Groups.
  6. That theses by undergraduates shall not be accepted if handed in at a date later than that set by the instructor for the course, except in case of illness, or other unavoidable reason for postponement accepted as satisfactory by the Chairman of the Department and the instructor.
  7. That the same principle (vote 6) shall apply to written exercises of all kinds, and to stated conferences. Failure to attend a conference for a thesis, unless excused on the grounds above noted, shall preclude acceptance of the thesis.

 

Source: Harvard University Archives. President Lowell’s Papers, 1909-1914 (UAI.5.160), Box 15, Folder 413.

Image Source: U. S. Library of Congress Prints and Photographs Division. Treasure room, Widener Library at Harvard University, Cambridge, Massachusetts, ca. 1915.

Categories
Economists Harvard

Harvard. Taussig’s use of own text in his Principles of Economics Course, 1911

“Let those who will—write the nation’s laws—if I can write its textbooks.”
Paul A. Samuelson
. 

In 1911 the biggest gun of the Harvard economics department, Frank W. Taussig, published the first edition of his two-volume textbook Principles of Economics. In this posting I provide first his preface that I find particularly interesting for the following two statements:

“…a suitable place for taxation was not easy to find. I concluded finally to put the chapters on this subject at the very close, even though they may have the effect of an anticlimax, coming as they do after those on socialism.”

“[I] have said little on such a topic as the subjective theory of value, which in my judgment is of less service for explaining the phenomena of the real world than is supposed by its votaries. These matters and others of the same sort are best left to the professional literature of the subject.”

The second item is a letter he wrote that fall to the President of Harvard that provides his apologia for requiring students taking his course to own (or as he wrote “at least control”) a copy of his textbook. He says he contributed a number of his textbooks to the Phillips Brooks House Loan Library so “poor fellows” would not feel compelled to buy the book. That library had some three thousand textbooks in 1921 according to the Harvard Crimson. Cf. “The Phillips Brooks House. Formal Transfer to the University. Memorial Mass Meeting in Sanders.” The Harvard Crimson January 24, 1900.

______________________________________

PREFACE

[Taussig, Frank W. Principles of Economics. (2 vols., New York, 1911). Volume I  ; Volume II.]

I have tried in this book to state the principles of economics in such form that they shall be comprehensible to an educated and intelligent person who has not before made any systematic study of the subject. Though designed in this sense for beginners, the book does not gloss over difficulties or avoid severe reasoning. So one can understand economic phenomena or prepare himself to deal with economic problems who is unwilling to follow trains of reasoning which call for sustained attention. I have done my best to be clear, and to state with care the grounds on which my conclusions rest, as well as the conclusions themselves, but have made no vain pretense of simplifying all things.

The order of the topics has been determined more by convenience for exposition than by any strict regard for system In general, a subject has been entered on only when the main conclusions relating to it could be followed to the end. Yet so close is the connection between the different parts of economics that it has been necessary sometimes to go part way in the consideration of matters on which the final word had to be reserved for a later stage. Taxation has offered, as regards its place in the arrangement, perhaps the greatest difficulties. It is so closely connected with economics that some consideration of it seemed essential; whereas public finance in the stricter sense, whose problems are political quite as much as economic, has been omitted. Yet a suitable place for taxation was not easy to find. I concluded finally to put the chapters on this subject at the very close, even though they may have the effect of an anticlimax, coming as they do after those on socialism.

The book deals chiefly with the industrial conditions of modem countries, and most of all with those of the United States. Economic history and economic development are not considered in any set chapters, being touched only as they happen to illustrate one or another of the problems of contemporary society. Some topics to which economists give much attention in discussion among themselves receive scant attention or none at all. I have omitted entirely the usual chapters or sections on definitions, methodology, and history of dogma; and have said little on such a topic as the subjective theory of value, which in my judgment is of less service for explaining the phenomena of the real world than is supposed by its votaries. These matters and others of the same sort are best left to the professional literature of the subject. I hope this book is not undeserving the attention of specialists; but it is meant to be read by others than specialists.

Though not written on the usual model of textbooks, and not planned primarily to meet the needs of teachers and students, the book will prove of service, I hope, in institutions which offer substantial courses in economics. The fact that it is addressed to mature persons, not to the immature, should be an argument in favor of such use rather than against it. Being neither an encyclopedic treatise nor a textbook of the familiar sort, it offers no voluminous footnotes and no detailed directions for collateral reading. When facts and figures not of common knowledge have been cited, my sources of information have been stated. At the close of each of the eight Books into which the whole is divided, I have given suggestions for further reading and study, mentioning the really important books and papers.

I have expressed in the text, as occasion arose, my obligations to the contemporary thinkers from whom I have derived most stimulus. For great aid in revising the manuscript and proof, on matters both of form and substance, I am indebted to my colleagues Drs. B. F. Foerster and E. E. Day of Harvard University.

F. W. TAUSSIG.

Harvard University,
March, 1911.

______________________________________

[Letter:  Professor F. W. Taussig to Harvard President A. L. Lowell]

HARVARD UNIVERSITY
DEPARTMENT OF ECONOMICS

CAMBRIDGE, MASSACHUSETTS
October 6, 1911.

Dear Lawrence:

It is due to you to explain what course I finally follow in regard to the use of my book in Economics 1.

After consultation with various colleagues, – – Haskins, Hurlbut, Channing, and others, – – I came to the conclusion not to put a large number of copies into the libraries for students’ use. The book is not a reference book, but a textbook. It is not meant for occasional consultation, but for sustained study through the year. Library reading of the book is almost of necessity somewhat hurried; this is a book the students want to read and re-read. At all events, if it is not worth sustained study, it is not worth using in the course at all. We always treated other books used in the course in the same way, never making any pretense of supplying them in the library. Moreover, there is a serious practical difficulty in turning hundreds of students into the reading room at about the same time in the course of each week. This last, however, is a minor matter. The essential consideration is that ownership, or at least control, of the book, is for the intellectual advantage of the men.

One perplexity I have avoided like putting a supply of copies, for the use of poor men, in Phillips Brooks House. I do not want to compel the poor fellows to buy my book. There is a text-book loan library in Phillips Brooks House, and this I have supplied with a sufficient number of copies for the use of the needy. Hurlbut and Arthur Beane between them will see that these copies get into the proper hands.

Sincerely yours,

[signed]

F. W. Taussig

President A. Lawrence Lowell.

 

Source: Harvard University Archives. President Lowell’s Papers (UAI.5.160), 1909-1914 Nos. 405-436. Box 15, Folder 413.

 

Categories
M.I.T. Suggested Reading Syllabus

MIT. Business Cycles Reading List. Samuelson, 1952

We can see an enormous change in the syllabus of Paul Samuelson’s graduate course on business cycles in this first term of the 1952-53 academic year compared to the course he taught in the second term of the 1942-43 academic year

 

_________________________________________________

[Course Description]

14.481. Business Cycles (A). Statistical, historical, and theoretical examination of determinants of income, production and employment. Modern methods of analysis, forecasting, and control.

 

Source: Massachusetts Institute of Technology Bulletin. Catalogue Issue for 1952-1953 Session. June 1952, p. 149.

_________________________________________________

[in pencil: 14.481]

Reading Assignments
Business Cycles, Fall, 1952

The periods of time allocated to various subjects are very approximate.

 

I. Some fundamental notions about economic dynamics, 2 weeks.

Frisch: “On the Notion of Equilibrium and Disequilibrium,” Review of Economic Studies, Vol. 3, 1935, pp. 100-105.
Baumol: Economic Dynamics, Chapters 1, 7, 8.
Anyone who would like to learn a little about difference equations might study Chapters 9, 10, 11 of Baumol’s book.
Samuelson: Foundations of Economic Analysis, Ch. 11, pp. 311-344.
Harrod: Towards a Dynamic Economics, Lecture 1.
Samuelson: “Dynamic Process Analysis,” Chapter 10 in a Survey of Contemporary Economics, ed. Ellis, pp. 352-387.

II. Examples of informal theories of the business cycle, 2 weeks.

Pigou: Industrial Fluctuations, Chapters II-XII, pp. 18-138.
Clark: Strategic Factors in Business Cycles, pp. 160-226.
Mitchell: “Business Cycles” in Readings in Business Cycle Theory, pp. 43-60.

III. Examples of formal models of the business cycle, 2 weeks.

Goodwin: Chapter 22 in Hansen: Business Cycles and National Income, pp. 417-468.
Goodwin: Innovations and the Irregularity of Economic Cycles,” Review of Economic Statistics, 1946.
Hicks: A Contribution to the Theory of the Trade Cycle, Chapters 7, 8, pp. 83-107.
Samuelson: “Interaction of the Multiplier and the Acceleration Principle,” Review of Economic Statistics, 1939, pp. 75-78. Reprinted in Readings in Business Cycle Theory.
Kaldor: “A Model of the Trade Cycle,” Economic Journal, 1940, pp. 78-92.
Kalecki: Essays in the Theory of Economic Fluctuations, Chapter 6.
Metzler: “The Nature and Stability of Inventory Cycles,” Review of Economic Statistics, 1941, pp. 113-129.
Metzler: “Factors Affecting the Length of Inventory Cycles,” Review of Economic Statistics, 1947, pp. 1-15.
Abramowitz: Inventories and Business Cycles, pp. 3-34, 90-131, 312-326.

IV. Econometric Models, 2-3 weeks.

Clark: “A System of Equations Explaining the United States Trade Cycle,” Econometrica, 1949, pp. 93-125.
Klein: Economic Fluctuations in the United States, pp. 1-12; 84-122.
Christ: “A Test of an Econometric Model for the United States, 1921-1947,” National Bureau of Economic Research, Conference on Business Cycles, pp. 35-130.

V. The Economics of Long-Run Growth, 3-4 weeks.

Harrod: Towards a Dynamic Economics, Lecture 3.
Hicks: Trade Cycle, Chapters 5, 6, pp. 56-83.
Domar: Expansion and Employment,” American Economic Review, 1947, pp. 34-55.
Baumol: Economic Dynamics, Chapters 2, 4, 9.
Robinson: The Rate of interest and Other Essays, pp. 67-142.
Schelling: “Capital Growth and Equilibrium,” American Economic Review, 1947, pp. 864-876.
Abramowitz: “Economics of Growth,” in Survey of Contemporary Economics, Vol. II, pp. 132-182.
Alexander: “The Accelerator as a Generator of Steady Growth,” Quarterly Journal of Economics, 1949, pp. 174-197.
Rostow: Aspects of Economic Growth, Part I.

VI. Reading Period, 1 week.

Hansen: Business Cycles and National Income, Part III, pp. 211-498.

 

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Paul A. Samuelson Papers, Box 33, Folder “14.451 Business Cycles, 1943-1955”.

Image Source: MIT, Technique 1950.

 

Categories
Bibliography Wisconsin

Citizen’s Library of Economics, Politics and Sociology. Richard T. Ely, ed. 1900…

The University of Wisconsin economist, Richard T. Ely, served as the general editor for the social science series entitled “The Citizen’s Library of Economics, Politics and Sociology.” He actually disliked the title “Citizen’s Library” that had been given by Macmillan.  He thought it would give an unintended popular stigma to the scientific works he intended to include (Benjamin G. Radar [1966], The Academic Mind and Reform: The Influence of Richard T. Ely in American Life, p. 156). 

Links are provided to all the individual items but one (I couldn’t find an online copy of Blackmar’s Elements of Sociology).

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THE CITIZEN’S LIBRARY
OF ECONOMICS, POLITICS AND SOCIOLOGY.

Edited by Richard T. Ely, Ph.D., LL.D.
Professor of Economics in the University of Wisconsin

Published by The Macmillan Company, New York

EDITOR’S PREFACE

The present volume is the first in a Library having the above title. It is hoped eventually to cover the three fields of knowledge indicated by the title in such way that the various series included in the Library will afford such complete information concerning the theory and facts of these sciences that the volumes will have some of the advantages of an encyclopedic work combined with those of separate and distinct treatises. To aid in the accomplishment of this purpose, it is planned to issue from time to time an index volume or supplement, binding together a series on closely related subjects. [Note: not aware this ever happened] This Library thus includes new and valuable features, for it will give to the public a set of works affording information on topics of importance to every citizen which must now be sought in a great multiplicity of sources, and often sought in vain.

The character of the writers and the management of the Library will be such as to inspire confidence. The utmost pains will be taken to secure the greatest possible accuracy in all statistical tables and statements of fact and theory, and no partisan bias will disturb the conclusions. It is the conviction of the Editor that scientific work in the field of the humanities may generally be made interesting to intelligent citizens through cultivation of clearness in statement and literary style. There are masterpieces even in Economics, for example, which rank as literature, as Adam Smith’s Wealth of Nations and John Stuart Mill’s Political Economy bear witness. It is desired to lay emphasis on the fact that while the sciences of Economics, Politics, and Sociology are of concern to the citizen, and make appropriate the title ” Citizen’s Library,” in no case will the interests of science be sacrificed to popularity. The aim will be to bring every volume in the Library up to the present standard of science, and it is hoped that the Library will in more than one instance push forward the boundaries of knowledge.

In conclusion, it only remains to add that the various authors assume responsibility for expressions of opinion, and that publication in the Library does not necessarily mean an endorsement either by publishers or Editor of views found in the several volumes.

The Editor.

Source: Ely, Richard T. Monopolies and Trusts , New York: Macmillan, 1900, pp. ix-xi.

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BOOKS IN THE CITIZEN’S LIBRARY
OF ECONOMICS, POLITICS AND SOCIOLOGY.

Addams, Jane. (1902). Democracy and Social Ethics.

Addams, Jane. (1907). Newer Ideals of Peace.

Baker, M. N. (1902). Municipal Engineering and Sanitation.

Blackmar, Frank Wilson. (1908). The Elements of Sociology.

Bradford, Ernest S. (1911). Commission Government in American Cities.

Bullock, Charles J. (1900). Essays on the Monetary History of the United States.

Carlton, Frank Tracy. (1908). Education and Industrial Evolution.

Ely, Richard T. (1893).  Outlines of Economics.

Ely, Richard T. (1893, reprinted 1900). Outlines of Economics.

Ely, Richard T., Thomas S. Adams, Max O. Lorenz, and Allyn A. Young. (1908, revised and enlarged). Outlines of Economics.

Ely, Richard T. (1900). Monopolies and Trusts.

Ely, Richard T. (1903). Studies in the Evolution of Industrial Society.

Ely, Richard T. (1905 reprint of 1886). Labor Movement in America.

Fisk, George Mygatt. (1907). International Commercial Policies with Special Reference to the United States, a Text Book.

Hobson, John A. (1900). The Economics of Distribution.

Jones, Edward D. (1900). Economic Crises.

Kelley, Florence. (1905). Some Ethical Gains Through Legislation.

Kinley, David. (1904). Money.

MacLean, Annie Marion. (1910). Wage-Earning Women.

Macy, Jesse. (1900). Political Parties in the United States, 1846-1861.

Mangold, George B. (1910). Child Problems.

Mead, Elwood. (1903) Irrigation Institutions. A Discussion of the Economic and Legal Questions Created by the Growth of Irrigated Agriculture in the West.

Meyer, Balthasar Henry (1909). Railway Legislation in the United States.

Parmelee, Maurice. (1908). The Principles of Anthropology and Sociology in Their Relations To Criminal Procedure.

Reinsch, Paul S. (1900). World Politics at the End of the Nineteenth Century as Influenced by the Oriental Situation.

Reinsch, Paul S. (1902). Colonial Government.

Reinsch, Paul S. (1905). Colonial Administration.

Ross, E. A. and Aleworth, E. (1901). Social control, a survey of the foundations of order.

Ross, Edward A. (1905). The Foundations of Sociology.

Smith, J. Allen. (1907). The Spirit of American Government; A Study of the Constitution: its Origin, Influence and Relation to Democracy.

Sparling, Samuel E. (1906). Introduction to Business Organization.

Taylor, Henry C. (1905). An Introduction to the Study of Agricultural Economics.

Vincent, John Martin. (1900). Government in Switzerland.

Wilcox, Delos F. (1904). The American City; A Problem in Democracy.

Wilcox, Delos F. (1910). Great Cities in America, their Problems and their Government.

Zueblin Charles (Revised edition, 1916). American Municipal Progress.

 

Image Source: Universities and their sons; history, influence and characteristics of American universities, with biographical sketches and portraits of alumni and recipients of honorary degrees, Vol. IV (1900), p. 505.