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Harvard. The Soviet Economy, course outline and final exam. Herbert Levine, 1963

 

Herbert Levine was trained in economics and Russian studies at Harvard before going off to lifetime employment at the University of Pennsylvania. He returned to Harvard in the fall term of 1963 to cover the Soviet economy class for Abram Bergson who was on leave at the Center for Advanced Study of the Behavioral Sciences at Stanford in 1963-64.

 Along with a younger economist from the University of Texas, Ed Hewett, Levine championed my application to the International Research and Exchanges Board (IREX) for a research exchange fellowship in the German Democratic Republic back in the late 1970s. He was a mentor to many other young scholars working on the economies of the Soviet Union and Eastern Europe. I last saw him in November 2003 at an economics workshop at Harvard where drafts of papers were presented that would later be published in a special issue edited by Paul R. Gregory and Marshall Goldman in honor of Abram Bergson (Comparative Economic Studies, 2005).

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Obituary in The Daily Pennsylvanian

Former economics prof. leaves a legacy
47-year teacher is remembered fondly for his compassion and challenging courses

https://www.thedp.com/article/2007/06/former-economics-prof-leaves-a-legacy

By Alissa Eisenberg and Alissa Eisenber 06/14/07

Herbert Levine, Economics professor at Penn from 1960 to 2006, died Sunday, succumbing to complications from leg surgery after battling prostate cancer for the past 15 years.

Levine was 78.

Receiving his B.A. [1950], M.A. [1952] and Ph.D. [1961] degrees from Harvard University, Levine specialized in Soviet economics and his insights were “in demand during the period leading up to the dissolution of the Soviet system,” according to a written statement by fellow Economics professor Lawrence Klein.

Levine published several articles on his area of expertise, yet never failed to acknowledge the importance of the broader study of economics.

Winning several awards for excellent teaching at Penn including the Lindback Foundation Award for Distinguished Teaching and the Kravis Prize for Distinction in Undergraduate teaching, Levine was highly regarded among students.

“Econ 1 is large, but [my dad] would call on people by name, he just taught that way and people cared for his courses,” said daughter and College alumna Jan Levine.

Former student and 1964 College alumnus Ted Kozloff echoed Levine’s revere for her father.

“Herb was a seminal figure in my education,” Kozloff said. “There are maybe one or two teachers in my lifetime that had an effect like Herb. . He enjoyed enormous popularity and there was enormous respect for him.”

And that respect remained prominent over his 47-year career at Penn.

Levine was Elizabeth Goldstein’s dissertation advisor in 1982, and she said he was “the most fabulous adviser anybody could ask for.”

Goldstein added, “He was rigorious but understanding and had an amazing gift for being able to guide people through very difficult and high-level economic theory.”

Many former students also noted his warmth and devotion to his personal life in addition to academics.

“Many people excel in their careers and forget their personal life, but Herb didn’t,” said former student Edward LaPuma.

Levine’s funeral was scheduled for this morning in Trevose, Pa.

He is survived by his wife Helene Levine, daughters Jan and Judith Levine, sister Myra Heller and three grandchildren. His son, Jonathon, predeceased him.

Obituary in the University of Pennsylvania Almanac,
Vol. 54, No. 1. July 17, 2007

https://almanac.upenn.edu/archive/volumes/v54/n01/obit.html

Dr. Herbert S. Levine, professor emeritus of economics and expert on Soviet and post-Soviet Russia, died on June 10, after complications from surgery from a broken leg during the end of a fifteen-year battle with prostate cancer; he was 78.

Dr. Levine completed his postsecondary education at Harvard, earning an undergraduate degree in economics in 1950, followed by a master degree in Russian studies two years later. He also earned a doctorate from Harvard in 1961, writing his dissertation on the economic performance of the USSR, which earned important recognition of his research by winning the prestigious David A. Wells Prize.

Dr. Levine joined Penn’s faculty in 1960 as an assistant professor of economics. He studied the controlled economy of the USSR, in close touch with other members of a research center at Harvard University. He was promoted to professor in 1969. In addition to his teaching duties, Dr. Levine served as chairman of the graduate group in economics and as co-director of the Lauder Institute. After a 47-year career at Penn he retired in 2006.

His unusual abilities in presenting modern political economy to undergraduates resulted in him being awarded faculty prizes for his teaching including the Irving B. Kravis Prize for Distinction in Undergraduate Teaching (1988 and 1991) and the Lindback Award for Distinguished Teaching.

Dr. Levine is survived by his wife, Helene; two daughters, Jan Levine, and Judith Levine and their husbands Michael Zuckerman and Edward Sobel; their grandchildren, Rachel Zuckerman, Joshua Zuckerman and Julia Sobel; and his sister, Myra Heller and brother-in-law Jack Heller.

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Harvard Course Announcement Fall Term, 1963

Economics 133. The Economy of Soviet Russia (Offered jointly with the Committee on Regional Studies).

Half course (fall term). M., W., (F.) at 9. Professor Levine (University of Pennsylvania).

Economic development under the five-year plans: the rate of economic growth: structural changes; conditioning factors. Planning principles and procedures.

Source: Harvard University, Faculty of Arts and Sciences. Courses of Instruction for Harvard and Radcliffe, 1963-1964, p. 103.

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ECONOMICS 133, Fall Term, 1963-1964
The Economy of Soviet Russia
H. S. Levine

Course Outline and Reading List.

Books to be Purchased:

Dobb: M. Dobb, Soviet, Economic Development Since 1917, International Publishers, 1948.

Readings: Readings on the Soviet Economy, F. Holzman (ed.), Rand McNally, 1961.

Part One

I. Historical Overview

A. Pre-Revolution
(General Historical Background: D. Treadgold, Twentieth Century Russia, Rand McNally, 1959, Chapters 1-5, 8.

1. Bowden, Karpovich and Usher, An Economic History of Europe Since 1250, Chapters 14 and 29.

2. G. T. Robinson, Rural Russia Under the Old Regime, Chapters 6, 7, 11.

3. A. Gerschenkron, “The Rate of Industrial Growth In Russia Since 1885,” Part 1, The Journal of Economic History, Supplement VII, 1947, pp. 144-157 (only).

4. Supplementary Readings:

a) J. Blum, Lord and Peasant in Russia, Chapters 24, 26, 27.

b) Robinson, Chapters 5, 12.

c) P. I. Lyashchenko, History of the National Economy of Russia; on agriculture: Chapters 21, 23, 36; on industry: Chapters 25, 26, 32-34.

d) T. Von Laue, Sergei Witte and the Industrialization of Russia

e) A. Gerschenkron, “Russia: Patterns and Problems of Economic Development, 1861-1958, » in his Economic Backwardness in Historical Perspective (postpone Part Ill). This essay also appears in C. Black (ed.), The Transformation of Russian Society.

B. The Revolution, War Communism, and the New Economic Policy (1917-1927)
(General Historical Background: Treadgold, Chapters 9-14.

1. Dobb, Chapters 3-7.

C. The Industrialization Debates, Collectivization and the Beginning of the Plan Era
(General Historical Background: Treadgold, Chapter 17.

1. Dobb, Chapters 8 and 9

2. A. Erlich, “Preobrazhenski and the Economics of Soviet Industrialization,” Quarterly Journal of Economics, Feb. 1950, pp. 57-88

3. Readings: N. Jasny, “Early Kolkhozy and the Big Drive”

4. M. Fainsod, Smolensk Under Soviet Rule, pp. 242-258

5. Supplementary Reading:

a) Readings: A. Erlich, “Stalin’s Views on Soviet Economic Development”.

D. From the First Five Year Plan to the End of the War (1928-1945)
(General Historical Background: Treadgold, Chapter 18

1. Dobb, Chapter 10

2. N. Jasny, Soviet Industrialization 1928-1952, pp. 109-114

3. Dobb, Chapters 11, 12 and pp. 453-454

4 Jasny, Soviet Industrialization, pp. 177-187

E. Post-War to the Present
(General Historical Background: Treadgold, Chapter 25

1. Jasny, Soviet Industrialization, pp. 235-256

2. G. Grossman, “The Soviet Economy,” Problems of Communism, XIl:2, (Mar-Apr. 1963) pp. 32-40

3. Supplementary Readings:

a) O. Hoeffding, “Substance and Shadow in the Soviet Seven Year Plan,” Foreign Affairs, April, 1959

b) H. Levine, “The New Seven Year Plan,” The New Leader, May 25 and June 1, 1959,

II. Soviet Economic Growth

A. Problems of Measuring Growth

1. The Soviet Statistical System

a) G. Grossman, Soviet Statistics of Physical Output of Industrial Commodities, pp. 1-10, 22-46

2. Reliability of Soviet Statistics

a) Readings: A. Bergson, “Reliability and Usability of Soviet Statistics: A Summary Appraisal”

b) L. Turgeon, “On the Reliability of Soviet Statistics,” Review of Economics and Statistics, February 1952, pp. 75-6.

c) Grossman, Soviet Statistics, pp. 123-134.

3. Interpretation of Data

a) Readings: A. Bergson, “The Adjusted Factor Cost Standard of National Income Valuation.”

b) Readings: A. Nove, “1926/27 and All That.”

c) A. Gerschenkron, A Dollar Index of Soviet Machinery Output, pp. 47-58

d) R. Moorsteen, “On Measuring Productive Potential and Relative Efficiency,” Quarterly Journal of Economics, August 1961, pp. 451-467

e) Supplementary Readings

1) J. R. Hicks, “The Valuation of the Social Income,” Economica, May 1940, pp. 105-124

2) P. Samuelson, “Evaluation of Real National Income,” Oxford Economic Papers, January 1950, pp. 1-29.

3) A. Becker, “Comparisons of US and USSR National Output: Some Rules of the Game,”World Politics, October 1960, pp. 99-111.

B. What Has Been Accomplished?

1. National Income

a) A. Bergson, “National Income,” in A. Bergson and S. Kuznets (eds.), Economic Trends in the Soviet Union, pp. 1-16 (only).

b) S. Cohn, “The Gross National Product in the Soviet Union,” in Joint Economic Committee, Dimensions of Soviet Economic Power, pp. 69-77.

c) Supplementary Reading

1) A. Bergson, The Real National Income of Soviet Russia Since 1928, Chapters 13 and 14.

2. Industry

a) Readings: N. Kaplan and R. Moorsteen, “An Index of Soviet Industrial Growth”

b) R. Greenslade and P. Wallace, “Industrial Production in the USSR,” in Dimensions, pp. 119-130

c) Supplementary Reading

1) R. Powell, “Industrial Production,” in Trends, pp. 150-176

3. Agriculture

a) D. G. Johnson, “Agricultural Production”, in Trends, pp. 203-214

b) J. Willet, “The Recent Record in Agricultural Production,” in Dimensions, pp. 95-100.

4.  Consumption

a) J. Chapman, “Consumption,” in Trends, pp. 235-270

b) Supplementary Reading

1) R. Golden, “Recent Trends in Soviet Personal Income and Consumption,” in Dimensions, pp. 347-366.

C. Analysis of Growth

1. H. Schwartz, Russia’s Soviet Economy (2nd and Revised Editions), pp. 1-26

2. W. Eason, “Labor Force,” in Trends, pp. 38-93

3. N. Kaplan, “Capital Formation and Allocation,” in A. Bergson (ed.), Soviet Economic Growth, pp. 37-80

4. A. Bergson, “National Income,” in Trends, pp. 17-35.

5. Supplementary Readings

a) F. Seton, “Production Functions in Soviet Industry,” American Economic Review, May 1959, pp. 1-14

b) R. Campbell, Soviet Economic Power, Chapter 4

c) N. DeWitte, “Education and the Development of Human Resources,” in Dimensions, pp. 233-268

d) Readings: “Forced Labor in the Soviet Union”.

Ill. The Operation of the Soviet Economy

A. General Operating Framework and Principles

1. P. Cook, “The Administration and Distribution of Soviet Industry,” in Dimensions, pp. 183-210.

2. A. Nove, The Soviet Economy, Chapter 1.

3. W. Loucks, Comparative Economic Systems (6th Edition), pp. 444-453.

4. Supplementary Reading

a) G. Grossman, “The Structure and Organization of the Soviet Economy,” Slavic Review, June 1962, pp. 203-222.

B. Planning

1. O. Lange, “On the Economic Theory of Socialism” in B. Lippincott (ed.), O. Lange and F. Taylor, On the Economic Theory of Socialism.

2. Schwartz, Chapter V

3. Readings: H. Levine, “The Centralized Planning of Supply in Soviet Industry.”

4. Readings: G. Grossman, “Scarce Capital and Soviet Doctrine”

5. Readings: “On the Problem of Determining the Economic Effectiveness of Capital Investments.”

6. Supplementary Readings

a) J. Drewnowski, “The Economic Theory of Socialism: A Suggestion for Reconsideration,” Journal of Political Economy, August 1961, pp. 341-354

b) Dobb, Chapter 1

c) H. Hunter, “Optimum Tautness in Developmental Planning,” Economic Development and Cultural Change, July 1961, Part l, pp. 561-572.

d) R. Campbell, Soviet Economic Power, Chapter 5

e) I. Yevenko, Planning in the USSR, (Foreign Languages Publishing House, Moscow), esp. Chapter III.

f) Readings: D. Granick, “An Organizational Model of Soviet Industrial Planning.”

C. The Firm and Problems of Industrial Administration

1. Readings: J. Berliner, “The Informal Organization of the Soviet Firm.”

2. Readings: A. Nove, “The Problem of Success Indicators in Soviet Industry.”

3. “The Liberman Proposals”

a) Current Digest of the Soviet Press, XIV:36 (Oct. 3, 1962), pp. 13-15

b) Harry Schafer, “Ills and Remedies,” Problems of Communism, May-June 1963, pp. 18-26.

4. A. Nove, “The Soviet Industrial Reorganization,” Problems of Communism, Nov.-Dec. 1957, pp 19-25.

5. H. Levine, “Recent Developments in Soviet Planning,” in Dimensions, 1st Section, pp. 167-185.

6. P. Cook, “Party, State and Economic Reorganization in the USSR.” The ASTE Bulletin, V:l (Winter 1963), pp. 2-11

7. Supplementary Readings

a) Readings: J. Berliner, “Managerial Incentives and Decisionmaking.”

b) G. Grossman, “Soviet Growth: Routine, Inertia, and Pressure,” American Economic Review, May 1960, pp. 62-72.

c) Readings: O. Hoeffding, “The Soviet Industrial Reorganization of 1957.”

d) M. Goldman, “Economic Controversy in the Soviet Union,” Foreign Affairs, 1963:3, pp. 498-512.

e) A. Nove, “The Liberman Proposals,” Survey, April 1963, pp. 112-118.

D. Prices

1. M. Bornstein, “The Soviet Price System,” American Economic Review, March 1962, pp. 64-103.

2. V. Nemchinov, “Value and Price Under Socialism,” Problems of Economics, IV:3 (July 1961), pp. 3-17.

3. R. Campbell, “Marx, Kantorovich, and Novozhilov: Stolmost Versus Reality,” Slavic Review, October 1961, pp.402-418.

4. M. Bornstein, “The 1963 Soviet Industrial Price Revision,” Soviet Studies, July 1963, pp. 43-52.

5. Supplementary Readings

a) Readings: G. Grossman, “Industrial Prices In the USSR.”

b) A. Wakar and J. Zielinski, “Socialist Operational Price Systems,” American Economic Review, March 1963, pp. 109-127

c) “The Great Value-Price Controversy in the USSR….” in H. Shaffer (ed.), The Soviet Economy (A Collection of Western and Soviet Views), pp. 340-421.

d) A. Zauberman, “Soviet Planometrics,” Soviet Studies, July 1962, pp. 62-74.

E. Finance

1. A. Nove, The Soviet Economy, Chapter 3

2. Readings: F. Holzman, “Financing Soviet Development”

3. Readings: F. Holman, “Soviet Inflationary Pressures, 1928-1957”

4. Readings: D. Hodgman, “Soviet Monetary Controls Through the Banking System”

5. Supplementary Reading. F. Holzman, Soviet Taxation, Chs. 1-4, 9.

F. Labor

1. Readings: E. Brown, “The Soviet Labor Market”

2. Schwartz, pp. 554-565, 534-548

3. Readings: A. Nove, “Social Welfare in the USSR.”

4. W. Galenson, “The Soviet Wage Reform” Proceedings of the Thirteenth Annual Meeting, Industrial Relations Research Association (1961), pp. 250-265.

5. A. Nove, “Toward a Communist Welfare State?” Problems of Communism, January-February 1960.

6. Supplementary Readings

a) E. Nash, “Trends in Labor Controls In the Soviet Union,” in Dimensions, pp. 393-404.

b) E. Brown, “Labor Relations in Soviet Factories,” Industrial and Labor Relations Review, January 1958

c) E. Brown, “A Note on Employment and Unemployment in the Soviet Union in the Light of Technical Progress,” Soviet Studies, January 1961, pp. 231-240.

G. Agriculture

1. Schwarz, Chapter VIII

2. C. Harris, “Soviet Agricultural Resources Reappraised,” Journal of Farm Economics, May 1956, pp. 258-273

3. Readings: L. Volin, “Agricultural Policy of the Soviet Union.”

4. J. Willet, “The Recent Record in Agricultural Production,” in Dimensions, pp. 100-113.

5. H. Walters, Agriculture in the United States and the Soviet Union, U.S. Dept of Agriculture, 1963).

6. Supplementary Readings

a) J. Newth, “Soviet Agriculture: the Private Sector, 1950-59,” Soviet Studies, October 1961 and April 1962.

b) A. Nove, “Soviet Agriculture Marks Time,” Foreign Affairs, July 1962.

c) D. G. Johnson, “Agricultural Production,” in Trends, pp. 214-234

H. Domestic Trade, Foreign Trade and Foreign Aid

1. M. Goldman, Soviet Marketing, Chapters 2, 3, 8.

2. A. Nove, and D. Donnelly, Trade with Communist Countries, pp. 21-57.

3. P. Thunberg, “The Soviet Union in the World Economy,” in Dimensions, pp. 409-438.

4. G. Carnett and M. Crawford, “The Scope and Distribution of Soviet Economic Aid,” in Dimensions, pp. 457-474.

5. A. Zauberman, “Economic Integration,” Problems of Communism, July-August 1959, pp. 23-29.

6. Supplementary Readings

a) M. Goldman, “Product Differentiation and Advertising: Some Lessons from Soviet Experience,” Journal of Political Economy, August 1960, pp. 346-357.

b) Readings: J. Berliner, “Soviet Foreign Economic Competition”

c) Readings: N. Spulber and F. Gehrels, “The Operations of Trade Within the Soviet Bloc.”

d) Readings: F. Holzman, “Some Financial Aspects of Soviet Foreign Trade.”

e) “Discrimination Within the Bloc: Mendershausen vs. Holzman,” The Review of Economics and Statistics: May 1959, May 1960 and May 1962.

I. Future Prospects and Their Implications

1. A. Bergson, “The Great Economic Race: USSR vs. USA,” Challenge, March 1963.

2. A. Bergson and J. Berliner, “Economic Aspects of the Party Program,” The ASTE Bulletin, IV:2 (Winter 1962) pp. 20-36.

3. Readings: O. Hoeffding, “Soviet State Planning and Forced Industrialization as a Model for Asia.”

4. Supplementary Reading

a) J. Hardt et al, The Cold War Economic Gap. (Praeger 1961).

b) Articles by Peterson, Colm, Rostow and Schwartz in Joint Economic Committee, Comparisons of the United States and Soviet Economies, Parts Il and Ill.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 8, Folder “Economics, 1963-64”.

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HARVARD UNIVERSITY
Department of Economics
Economics 133

Final Examination
January 27, 1964

Part I (One hour)
Answer three of the following four questions.

1. (20 minutes)

Compare the economic policies of Vishnegradsky and Witte with those of Stalin.

2. (20 minutes)

Discuss the problem of “success indicators” in Soviet industry.

3. (20 minutes)

Describe briefly how prices and wages are formed and the role they play in the Soviet economy,

4. (20 minutes)

Describe the operation and role of foreign trade in the Soviet economy.

Part II (One hour)
Answer two of the following three questions,

5. (30 minutes)

“In order to understand why the Russians (at least until very recently) have been so successful in achieving rapid economic growth, one need look no further than the high rate of investment they have been able to attain.”
Discuss.

6. (30 minutes)

You are a high ranking official of the Soviet Communist Party and you have just been appointed chief of agricultural affairs. You are requested to prepare a report in which you are to:

a) describe briefly the major reforms instituted in Soviet agriculture in the last 10 years;
b) discuss the extent of their success and/or failure; and
c) propose some further measures which may be taken to improve the agricultural situation.

How would you respond to this request? (“Flee the country” is not an acceptable response.)

7. (30 minutes)

The U.S. Central Intelligence Agency recently claimed that the rate of growth of Soviet national income in the last two years (1962 and 1963) has been 2.5% per year.
In analyzing this claim, answer the following questions:

a. What is meant by the “index number problem” in measuring economic growth? Why does it arise?

b. To what extent may there be an index number problem in CIA’s calculation?

c. How does this CIA figure differ from the rates of growth of Soviet national income which have been calculated by Bergson and Cohn for earlier periods?

d. What in your opinion might account for the differences?

e. Bonus (If you have time)

What do you think are the prospects for Soviet economic growth in the next 10 to 20 years? Explain.

Part III (One hour)
Answer the following question.

8. (60 minutes)

Suppose the Soviet government were to decide that it were no longer necessary or desirable to maintain a policy of achieving a maximum rate of economic growth. Suppose instead, it were to decide on a policy of achieving moderate growth (say about 4% per year in national income), rising standards of living for its people and full employment (in short, a “civilized” economic policy).

Discuss the possible effects such a decision might have on the various different elements in the organization and operative of the Soviet economy.

Source: Harvard University Archives. Papers Printed for Midyear Examinations [in] History, History of Religions,…, Economics,…,Naval Science, Air Science (January 1964) in bound volume Social Sciences. Final Examinations. January 1964 (HUC 7000.28, vol. 150 of 284).

Image Source: Associate Professor of Economics, Herbert S. Levine. University of Pennsylvania Yearbook, The 1967 Record, p. 108.

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United Kingdom and other countries. Methods of Economic Training. Cunningham Committee Report, 1894

 

The Cunningham Committee report on methods of economic training in the United Kingdom and other European and North American countries from 1894 provides a wonderful overview of the (Western) state of economics education.

Previous posts with information for U.S. economics courses taught in the 1890s can be found in the previous posts:

Chicago, Columbia, Harvard 1893-94

United States. Economics Courses in 23 universities, 1898-99

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Methods of Economic Training in this and other Countries.

Report of the Committee, consisting of Professor W. CUNNINGHAM (Chairman), Professor E. C. K. GONNER (Secretary), Professor F. Y. EDGEWORTH, Professor H. S. FOXWELL, Mr H. HIGGS, Mr. L. L. PRICE, and Professor J. SHIELD NICHOLSON.

APPENDIX

I.— On the Methods of Economic Training adopted in Foreign Countries, by E. C. K. Gonner, pp. 2 ff.

      1. Austria
      2. Hungary
      3. Germany
      4. Holland
      5. Belgium
      6. Italy
      7. Russia
      8. United States of America

II.— On Economic Studies in France, by H. Higgs, pp. 20 ff.

III.—On the Condition of Economic Studies in the United Kingdom, by E. C. K. Gonner, pp. 23 ff.

      1. England
      2. Scotland
      3. Ireland

IN furtherance of the above purpose three reports have been drawn up after due inquiry and laid before your Committee.

These reports, which are appended, bring out very clearly some features of difference between the position of such studies in this and in foreign countries, and, with other information before your Committee, seem to them to call for the following observations. Before proceeding to the consideration of certain particular points they would remark that the growth of economic studies, and in particular the development among them of the scientific study of the actual phenomena of life (both in the past and in the present), have important effects, so far as the organisation of the study and its suitability for professional curricula are concerned. It may be hoped, indeed, that when the empirical side is more adequately represented, the importance of the careful study of economics as a preparation for administrative life will be more fully recognised both by Government and the public.

(a) The Organisation of the Study of Economics. — While fully recognising the great energy with which individual teachers in this country have sought to develop the study of this subject, your Committee cannot but regard the condition of economic studies at the universities and colleges as unsatisfactory. As contrasted with Continental countries and also with the United States, the United Kingdom possesses no regular system. In one place economics is taught in one way, and in connection with some one subject, not infrequently by the teacher of that subject ; in another place in another way, and with another subject. Very often it is taught, or at any rate learnt, as little as possible. In most places this lack of organisation is due to the weariness of introducing elaborate schemes for the benefit of problematic students.. At Cambridge the pass examination which has recently been devised only attracts a few. With regard to the higher study of economics, Professor Marshall, among others, has written strongly of the comparatively small inducements offered by economics as compared with other subjects. He adds: “Those who do study it have generally a strong interest in it; from a pecuniary point of view they would generally find a better account in the study of something else.” Some considerations bearing on this point are offered below, but here it may be observed that the attempts to introduce more system into the teaching of economics, and to secure for it as a subject of study fuller public recognition, should, so far as possible, be made together.

In the opinion of your Committee economics should be introduced into the honour courses and examinations of the universities in such a manner as to allow students to engage in its thorough and systematic study without necessarily going outside the range of degree subjects.

(b) The Position of Economics with regard to Professional and other Curricula. — In most Continental countries economics occupies a place more or less prominent in the courses of training and in the examinations through which candidates for the legal profession or the civil service have to pass. In Austria, Hungary, and the three southern States of Germany this connection is very real, and the nature of the study involved very thorough. The same cannot be said with regard to the northern States of the latter empire, where the importance attached to this subject is so slight as to make its inclusion almost nominal. To some extent or in some form it is regarded as a subject obligatory on those preparing for those callings, or, to speak more accurately, for the legal calling and for certain branches of the civil service in Italy, Spain, Sweden, Norway, Denmark, and Switzerland. In Holland and Belgium, while a certain general knowledge only is required for a few posts or branches of the civil service, a very thorough study is incumbent on those qualifying for the higher branch of the legal profession. In both France and Russia it is an integral and necessary portion of the legal curriculum.

The two studies are cognate, and according to the view of your Committee not only would the institution of an examination in economics at some stage of legal degrees and qualifications be advantageous professionally, but the work of those who had enjoyed a legal training would react favourably on the advance of the science. In addition, economics should receive a much more important place in the Civil Service Examinations.

_______________________

APPENDIX I.
On the Methods of Economic Training
adopted in Foreign Countries
.
By E. C. K. Gonner.

The comparative study of the continental and other foreign systems of Economic Education brings out in clear relief certain features of either difference or coincidence which relate respectively to the impulses or circumstances giving this particular study its importance, to the method of study, and, lastly, to its organisation and the degree of success attained in the various countries.

(1) Putting on one side the purely scientific impulse to learn for learning’s sake, which can, after all, affect comparatively few, the inducement to a large or considerable number of students to interest themselves in any particular study must consist in its recognition, either positive or tacit, as a necessary preliminary to some professions or to certain positions. This may, as has been suggested, be either direct and positive, or indirect and tacit; direct and positive, that is, in the case of economics when in either one or more branches they are made part of the examinations admitting to the legal profession and the higher civil service; indirect and tacit when public opinion demands economic knowledge as necessary in those holding prominent positions as citizens or anxious to direct and control their fellows, either by the pen as journalists, or by act or word as statesmen or politicians. The importance of both these motives is, of course, largely increased when they exist in close connection with the purely scientific impulse. By itself this is not sufficient. The exclusion of one study, as economics, from professional or technical curricula, unless counteracted by the existence of a very powerful popular sentiment in its favour, practically removes it from the reach of students who have to make themselves ready to earn their living. Of the two influences, described above, the former, or the actual and positive recognition is given, in some shape or other, in Austria and Hungary, the southern states of the German empire, France, Belgium, Italy, Spain, Switzerland, Sweden, Norway, Denmark, Russia, and Holland. In America, and to some extent in Canada, popular sentiment and interest supply the needful impetus by making economics a tacit requisite for those exercising particular callings. In both Germany and Austria there are signs of the growth of economics in popular appreciation. In Austria, indeed, the circumstances are peculiarly fortunate. Economic instruction is recognised as a matter of serious importance, while, on the other hand, economic knowledge is one of the subjects of the State examinations for the legal and administrative service. In addition, its careful and scientific study is pursued by a fair number of advanced students. In this way Austria occupies a central position among the various nations which range themselves with America at one extreme, where there is no positive or direct obligation in favour of economic study, and at the other extreme, the Scandinavian and lesser Latin countries where all recognition that exists is positive, but where this positive recognition is largely nominal.

It has been urged that the ill-success of economic studies in these latter countries is largely an argument against their inclusion in obligatory curricula—a proposition which probably those who make it would hardly apply to the cases of other subjects. But from the evidence furnished by the countries before us this ill-success can be traced to other causes. It is due, firstly, to differences in the methods of study, and, secondly, to the differences in the thing made obligatory. In South Germany, Austria, and Hungary, economics is obligatory on certain classes of students, and the study of economics is making rapid and satisfactory progress, but then in South Germany, Austria, and Hungary, the method of study is one which commends itself to advanced students and educational critics, and the knowledge required in the examinations is thorough. In the lesser Latin countries, as Spain and Italy, the knowledge which the candidate is expected to show is elementary in itself, largely confined to elementary theory, and a marked unreality is imparted to the whole study, an unreality recognised alike by examiners, teachers, and students. On the other hand, the advantages which economics may receive from its public and positive recognition are borne witness to by those best acquainted with the condition of the study in Germany, where the usages of the north and south differ. Broadly speaking they consist in the removal of economics from the category of unnecessary to the category of necessary acquirements. Many of those who begin the study from compulsion continue it from choice. In America, indeed, the strength of popular sentiment and the ever present interest of politics together with the action of the universities, where nearly all studies, and not economics alone, are put on a voluntary footing, give it an adequate position; but failing the combination of conditions such as these, its absence, both from all professional curricula and from the earlier stages of education, cannot but be regarded as disastrous and unjust.

(2) The method of economic studies is of a certain importance with regard to the subject last discussed. Though it would be unfair to estimate the work, or to judge of the scope of schools of economic teaching from their extreme tendencies, these afford not unsatisfactory means of distinction. Speaking broadly, they may be placed in two groups—those in which the dominant influence is empirical; those in which it is theoretical or abstract. Very few economists, whether teachers or writers, are wholly empirical or wholly theoretical. Some bias, however, they nearly all have, and it is by that they may be ranked for the present purpose. Nor must it be supposed that the distinctions drawn in one country, with regard to these opposing lines of study, at all correspond with those existing in another. In Germany, for instance, the attitude of Professor Wagner is attacked by the members of the historical school— one branch of the empirical—but judged by the standards of France and England he would rank in the main as an empiricist. The theorists of Germany and Austria do little more than assert that theoretical study has its due place and is a necessary part of the equipment of an economist.

When discussing the assertion that compulsory economics, however enforced, tended to issue in perfunctory attendances and poor results so far as interest was concerned, it was urged that these consequences depended largely on the method and nature of study. This is remarkably llustrated by the fact that the countries where such evils are regretted or anticipated are those where the study of economics is mainly theoretic, or where economics is distinctly and openly subordinated to other subjects. Lessons of this latter kind are never thrown away upon students. But with regard to the former, it is not from the southern states of the German empire, or from Austria, that we hear these complaints. There economic study is obligatory, and the economic study involved is two thirds of it empirical in character. In the Latin countries the state of things is very different. The basis of study is, if I may say so, text-book theory, and the position of economics, so far as progress is concerned, is unsatisfactory in the extreme. This has been particularly dealt with in the paragraphs relating to Italy.

In two of the great nations the mode of study practised is largely empirical. In Germany, despite the contrast between different leaders of thought, the importance of this method is well illustrated by the position which the study of Practical or Applied Economics invariably occupies. In America, the study of economic history and of modern economic fact grows into greater prominence year by year.

(3) Turning to the question of success, the question arises at once as to the tests whereby such may be measured. Of these, many, varying from popularity to eclecticism, have been suggested, but possibly the one most suitable is the ability of a system to produce a high general level amongst a good number of students. Something more is required of a system than that it should bring together large audiences for elementary courses, while as for the production of a few very good students, a few will always press to the front through all difficulties, despite systems good or bad, or in the absence of any system at all. But a system that is to be deemed good must place within the reach of all industrious and apt students the means of a good general economic training, while stimulating him to prosecute original and independent work. Further, it should provide these advantages regularly and not intermittently. The way in which these two needs are met in practice can be stated briefly. General training is provided by a systematic series of courses which should include at least Theory of Economics, Applied Economics, and Finance. The seminar, or classes organised like the seminar, offer opportunities for guiding a student into the ways of original work.

Seminar instruction is given regularly in Germany, Austria, Hungary, in the better equipped universities of America, Switzerland, and to some extent in both Sweden and Holland. In Russia the professors may and sometimes do organise seminars or discussion classes. In Belgium classes are held in connection with some of the courses.

With regard to the systems of providing for a good ground knowledge of the leading branches of Economics, classification is rendered difficult by the different methods adopted in the various countries. Some are more, some less thorough. Among the former we may put without hesitation the countries already singled out for notice—Germany, America, Austria, and Hungary.

From the accounts given in detail below it is clear that in these countries the study of economics is advancing. The training is systematic. A fair proportion of students pass from the more general into the more special or advanced courses. The production of work, not necessarily of the first order, for with that we are not dealing, but of the second, or third, or fourth order, is great and still increases.

AUSTRIA.

The position of Economics in Austria is largely determined by its relation to legal studies, by the place, that is, which its various branches hold in the examinations qualifying for the legal profession and for the juridical and higher administrative services. According to the system till recently in force, but now somewhat modified, candidates intending to enter these had to attend certain courses at the universities, and to pass certain examinations varying according to the positions sought. Those entering the legal profession had to pass the first State examination in addition to the three political rigorosa of the university, success in which latter conferred the degree of Doctor. Other candidates only needed to pass the three State examinations. These latter were as follows:— The first (Rechtshistorische Staatsprüfung) was held at the end of the second year of study, and comprised the following subjects: Roman Law, Canon Law, and German Law in its historical aspect. The second (Judizielle Staatsprüfung) was held towards the end of the eighth semester, in the following subjects: Austrian Law, civil, commercial, and penal; Austrian civil and criminal Procedure. At the end of the four years came the third and final examination (Staatswissenschaftliche Staatsprüfung), which alone is of importance so far as the legal recognition of Economics is concerned. The subjects examined in were Austrian Law, International Law, Economics (including Economics, the Science of Administration, Finance and Statistics). The political rigorosa, while they correspond in outline to the State examinations, have some few points of difference both with regard to method and subjects. They, too, are three in number, and may be described as the Austrian rigorosum, corresponding to the second State examination, the Romanist, corresponding to the first State, and the Staatswissenschaftlich, which closely resembles the third State examination, though not including Statistics or Administration. There is no regulation as to the order in which they are to be passed, but that indicated above is customary. Their greater severity may be judged from both the additional length of preparation prescribed and the manner in which they are conducted. The earliest date at which a candidate may pass his first rigorosum is at the end of the fourth in place of the second year. The second and third may follow at respective intervals of two months. The Staatsprüfung is an examination taken by groups of four students, each group being under examination for two hours; but in the rigorosa each candidate is under examination for two hours, spending half-an-hour with each examiner. Both State and university examina tions are oral, and the latter are said to impose a severe strain on both examiner and candidate. In the latter the examiners are the university professors, while in the State examinations these are variously composed of professors, functionaries of the State, and barristers of good standing.

By the law of April 28, 1893, which came into effect in October, the system sketched above underwent certain alterations. A complete separation will be effected between the university examinations or rigorosa, and those qualifying for the legal profession and State services, the former no longer serving as a possible substitute for the second and third of the latter. In addition, some slight change has been introduced into the curriculum and examinations imposed upon students designing to enter these. They will have to attend courses and to be examined in— (a) The Science of Administration (Verwaltungslehre), and with special reference to Austrian Law; (b) Economics, theoretical and practical; (c) Public Finance, and especially Austrian Finance. In addition they must attend lectures (without subsequent examination) on Comparative and Austrian Statistics. These alterations will leave the number of students in the more elementary subjects unaffected, and so far from operating in discouragement of economic and political studies, will, it is hoped, lead to their more thorough prosecution, by raising the degree to a more scholarly position.

The marked recognition of Economics by the State, and the large number of students whose prospects are involved in its successful study, naturally affect the teaching organisation provided by the universities and other bodies.

This is fairly uniform throughout Austria, as apart from Hungary, though the extent to which the subject is pursued, and the variety of its forms, depend mainly on the enthusiasm of particular teachers and the greater opportunities offered by particular universities or other institutions. At the universities the ground plan of work may be described as identical, Economics being taught in the faculty of law. There are certain courses which must be delivered, and at which attendance is obligatory for certain classes of students. These are on National Economy, Finance, Statistics, and the Science of Administration (Verwaltungslehre), which includes instruction in practical economics, public health, army, matters of policy, justice, &c. But in addition to these the teachers, whether professors or privat-docents may, and often do, deliver special courses dealing with more particular subjects. These are not necessarily or usually the same from year to year; and may be described as instruction of an unusually high order, inasmuch as each teacher is accustomed to select for treatment such branch of science in which his own activities and studies lie. The large2 voluntary attendance at such lectures is a testimony to the regard in which economic studies are held among a large body of students.

1Vienna—Prag (German), Prag (Bohemian), Graz, Innsbruck, Krakau (Polish), Lemburg (Polish).
2At Vienna the attendants at special courses varies from 50 to 100.

Seminar instruction is customary, as in Germany. At Vienna there are two seminars, one for Economics, one for Statistics and Political Science (Staatswissenschaft), while in addition there is an Institute of Political Science, attached to all of which are libraries and places for the members to carry on their work in close contact with their professor or his deputy. The members consist in part of young doctors of the university who have recently graduated, in part of those preparing for the examinations of the university, and include, as a rule, several foreigners who have come to Vienna to pursue their studies. The arrangements at the other universities are similar, though in some they lack the completeness displayed at Vienna.

Students who, having passed their examinations with credit, or other wise performed their work to the satisfaction of their teachers, wish to carry on their studies in other countries are eligible for Reisestipendia (travelling scholarships). These are rewarded to encourage study in foreign universities, or to enable their holders to carry out investigations which necessitate a journey. Unfortunately they are but few in number, and as they are open to students of all faculties, few economists can hope to obtain them. Among the more recent holders in Vienna are Professors Böhm-Bawerk, Robert Meyer, Von Phillipovich, and Dr. Stephen Bauer, the two latter of whom published reports on matters studied abroad.

In this way a method of economic instruction has been developed in the Austrian universities which not only provides a large number with a carefully systematised series of courses, but offers to those disposed to more thorough or more special study ample opportunity. The more eager and energetic pass through the courses compulsory for the law degree, in themselves a fitting preliminary to more detailed work, to attendance at the special courses and membership of the seminar; from these they may, if fortunate, advance into the position of travelling or research scholars of their university. Though most of the students at the Economic Lectures are jurists, the attendance frequently includes members qualifying in other faculties, or even more general ‘hearers.’ At Krakau, students of the philosophical faculty form some 20 to 25 per cent of the total. All these students are entirely free so far as their choice of Economic courses is concerned. It is not possible to give the exact numbers of the students to be described respectively as elementary and advanced. The particulars, however, furnished by the various universities permit a rough general estimate. Not fewer than one thousand students undergo the more general courses, thus attaining to a fair systematic acquaintance with the main branches of economic study, while out of that number more than two hundred take special courses and enter the various seminars. This account rather under than over estimates the extent to which economic studies extend. As to the character of the advanced work there is no doubt. As has been pointed out, it is of a high order. But some question has been raised as to the value of the knowledge likely to be attained by the more general student. The variety of subjects required in the examinations either of the university (political rigorosa) or of the State, and the number of courses obligatory on the students, do not allow of an early specialisation.1 But a glance at the nature of the examination, and at the syllabus of the various courses, forbids the inference that the instruction given is of a purely rudimentary nature.

1This, as Professor von Milewski contends, interferes with the scientific character of the various studies required for the degree. As each has to take up several subjects, and to pass examinations in these, he cannot give very special attention to Economics or any other branch of social science in which he may happen to be interested.

Much, it is true, depends upon the personal enthusiasm and force of the teacher, for, despite the obligation of attendance, a dull and unininteresting lecture will rarely obtain the audiences registered to him, many students preferring to buy copies of the course hectographed from the notes of their predecessors in the lecture room, and only troubling themselves to appear at the beginning and end of the semester.

In the University of Krakau, Economics are obligatory, both in study and examination, for the students of agriculture who attend special lectures, apart, that is, from the law students. Instruction in Economics (Political Economy, Finance, and Statistics) is given also at all the Technical High Schools (Technischen Hochschulen) in Austria,1 while attendance at the courses (though without examination) is obligatory at the schools of agriculture, where similar conditions prevail. At the Commercial Academies (Handelsakademien of Vienna and Prague) a course of lectures is given with particular reference to the Economic branches which throw most light on commercial facts and features, and on the relations existing between the various classes engaged in industry and trade. To obtain the diploma of these institutions the lectures are followed by an examination. Courses are provided for the consular service at the Oriental Akademie in Vienna, and for the service of the administration of the army.2 There is also a Fortbildungschule for officials of the railway, where political economy is taught and examined in. Members of these courses are considered specially fitted for the attainment of the higher posts in their service.

1Of these there are six:-Vienna, Brünn, Graz, Prag (German), Prag (Bohemian), Lemburg (Polish). After examination diplomas are granted, which are necessary for those becoming teachers in agricultural schools, and are, it is said, a strong recommendation in the eyes of landlords when engaging their officials, agents, &c.
2An Intendanz-Class for officers willing to serve as Intendanten for the provision of the army.

A knowledge of Economics, duly and doubly certified by registered lecture courses and by examination, is a necessary preliminary to certain careers. Attendance at the university lectures and the attainment of the juridical degree are the qualification for the higher branches of the legal profession (advocate, &c.), and like attendance and degree, or, in the place of the latter, the diploma of public service, are required for all branches of the legal profession and for the whole civil service. Entrance into the consular and diplomatic services may also be obtained through the courses of the Oriental Academy. Further, as has been pointed out above, a certain acquaintance, or supposed acquaintance, with economic studies is considered necessary in some other vocations.

At the present time very considerable importance is attached to economic studies in Austria. Their scientific character is a general matter of care, and an extension of the sphere in which they are obligatory, or at least advisable on the part of those who seek success in their particular calling or profession, is earnestly advocated by some. In the first direction the reforms in the juridical studies at the universities will operate. As Dr. Mataja writes:— ‘Economics will have greater and not less weight.’ On the other hand, and in the other direction, different suggestions have been made. Some advocate the extension of compulsory study to engineers who will become officials and directors in factories, to the employés of the fiscal service, to those attending the more elementary technical schools. Others would like to see schools of political and social science (including Economics) founded in the great industrial centres. Whether these suggestions be carried out or not, they serve to illustrate the feeling which exists, at least on the part of some, with regard to the value of Economics both as a special and as a branch of general study.

HUNGARY.

Economics holds a position somewhat similar to that in Austria. It is obligatory on all students in the faculty of law and political science at the two universities,1 and in the Rechtsakademien (legal faculties, as at Kassa), who must take courses in Economics and Finance before the end of their second year, when they have to pass an examination, among the subjects of which these are included. After the second year their studies bifurcate, according to the degree which they seek (Dr. Juris, or Dr. Cameralium). In order to obtain the former, they must pass an examination in financial law. But if they wish to take the latter degree (Dr. Cameralium), they must pass two rigorosa, among the subjects of which are Economics (theoretical and practical), Finance, Finance Law, and Statistics. The knowledge required in this case is exceedingly thorough, and the degree is of high value in the public service. There are also state examinations which serve as qualifications, though to a lesser extent, for the legal and administrative services. Though easier, they correspond closely with the above. In the universities the system of economic study in its general features resembles that in vogue in Austria, the chief courses being those on Economics and Finance; but both at Budapest and Klausenburg, as, for instance, at Strassburg to take a parallel, these studies belong not to a sole legal faculty, but to a legal and political faculty (Rechts- und Staatswissenschaftliche Fakultät). In addition to successful examinations the candidates have to present a thesis. The possession of the degree of Dr. Cameralium implies a very sound economic training, and it was till lately the chief means of entering the higher civil service both of the kingdom and of the states. Considerable attention is paid to Economics, the seminars being well frequented, and the interest and activity of students great. This is particularly true of Budapest, where the lectures are varied and delivered by a numerous and able staff.

1Budapest, Klausenburg (Kalorsvar).

GERMANY.

The differences in the history and regulations of the various states composing the German empire have led, not unnaturally, to considerable differences in the positions which economic studies occupy. On the one hand, they are affected by the diversity of usage existing as to their connection with the course of study required for the legal profession and the civil service. On the other hand, the particular faculty in which they are included has been determined by reasons possessing little but historical validity.

  1. Prussia.—At the Prussian universities Economics belongs to the faculty of philosophy, and, speaking generally, to that section of this faculty known as the Sciences of the State. A student takes his degree in Economics entirely apart from law, the position of which as a separate faculty unfortunately precludes a student who presents a thesis in one of these two subjects from selecting the other as one of the two collateral subjects which he is bound by regulation to offer himself for examination in. Further, it must be noticed that the degree of doctor in this country, and, indeed, in Germany generally, is not a qualification, as was till recently the case in Austria and still is in certain of the Latin countries. Some assistance it may be in a judicial career, but even then the degree of Doctor Juris has naturally much more value than that of Doctor of Philosophy in the State Sciences.

Nor does Economics occupy an important place in the State examinations which qualify for the legal and administrative services. To enter these a candidate must pass examinations, the first of which is common to both services (referendar Examen). This consists of two parts, the first written and dealing with law, the second oral, which includes, among other matters, the elements of Economics. So subordinate is this subject that, in the opinion of many critics, it hardly counts in the decision as to the eligibility of candidates. The course of examination then bifurcates, some taking that for Justiz-Assessor, others for that of Regierungs Assessor, for neither of which is Economics required. At the latter of these (Reg. Assessor) some knowledge of Economics in its applied branches is said to be highly desirable, but inasmuch as the examination takes place some five years after the conclusion of the university course, the demands it makes are chiefly met by knowledge supplied from books. With regard to the constitution of the examining boards it should be noticed that, even at the referendar Examen, it is not in accordance with common practice to include professors of Economics.

  1. Saxony. —The system recently adopted in Saxony is, in so far as the subordination of Economics is concerned, nearly identical with that of Prussia. In one point it is more favourable to the interests of this subject, the professoriate being invariably represented on the board of examiners.
  2. Reichsland.—In the Reichsland Economics is of no more importance than it is in Prussia.
  3. Saxe Weimar.—In Saxe Weimar, too, it is of but nominal importance in the juridical examinations. There, too, the board of examiners is constituted irrespective of economic requirements, and, as has been caustically said, it is rare to find the examiners academically qualified in the subjects in which they are supposed to examine. The position, in the main, is very similar to that prevailing in Prussia.
  4. Bavaria.— In the chief southern and south-western states Economics holds a more important position in the legal and civil service curricula. Thus, in Bavaria, all students of law, administration, and forest (Landwirth) have to pass an examination in which it forms one of the subjects. The time of the examination is at the conclusion of the four years devoted to legal or other studies respectively, and the presence of the Professor of National Economy among the professorial examiners necessitates due attendance at lectures and thorough study. The second examination for the civil service is technical in character, and only requires economic knowledge in its connection with practical developments and issues.
  5. rtemburg.—In Würtemburg, though Economics forms no part of the strictly legal examinations, in the other State examinations for administrative students it is of very great importance. For these there are two examinations, the first of which, more general in character than the other, takes place at Tübingen, and involves a very considerable acquaintance with Economics.
  6. Baden.—Every legal student, as well as every candidate seeking entrance into the higher employments in the State departments of revenue and administration, must, in his time, attend lectures on, and pass examinations in, the economic and financial sciences.

The varying positions which Economics holds in the examinations qualifying for State and legal employment in the different German states affect a large number of university students who have to pass these examinations, but do not of necessity take a degree. To them the connection of Economics with one faculty or the other in the university cannot be a matter of much importance, but with others the case is different. Students reading for the degree are, as has been already said, restricted now on one side, now on another, as to their choice of collateral subjects for examination. Sometimes they can offer Economics in connection with law, sometimes they cannot. In addition, the influence which kindred studies taught in one faculty may bring to bear on the methods of instruction may, in some instances, prove of not inconsiderable importance even in the case of the students studying for the doctorate. Professor Brentano, however, whose personal experience extends from Leipzig to Strassburg, from Vienna to Breslau and Munich, contends that the varieties of combination matter less than might seem probable. The facultative position of Economics varies considerably. In Prussia and Saxony they find place among the many heterogeneous subjects grouped together in the faculty of philosophy, though in certain places, as at Berlin, they fall into a distinct subdivision. At Berlin they belong to the Staats- Cameral-und Gewerbewissenschaften. At Strassburg (Reichsland) they combine with law to form a Rechts- und Staatswissenschaftliche Facultät. At Tübingen (Würtemburg) a Staatswissenschaftliche Facultät exists independent of the law, a practice identical with that current at Munich (Bavaria). At some universities, as for instance at Jena, economic lectures are largely attended by the students of Landwirthschaft.

A comparison of the studies preliminary to the doctorate in Germany with those in Austria reveals two chief points of difference. At German universities there is little prescription of the course of study, or, indeed, of the methods to be adopted by the student, who within certain wide limits has a perfectly free choice of subjects. But this comparative freedom from restraint is closely connected with the great importance attached to the thesis, a custom which, its critics urge, leads to premature specialisation. In both countries candidates for the civil and legal services are much more closely restricted to definite courses.

In their practical working the systems of the different universities bear a close resemblance, at any rate in their earlier stages. There are three main courses, delivered annually, on pure Economics, Applied Economics, and Finance, all of which, even the first, involve a careful study of economic fact as distinct from hypothesised theory. The extent to which the method adopted in the first course is empirical depends, of course, on the position of the teacher as an adherent of one or other of the opposing schools of economic thought; but, speaking generally, even the least empirical among them would be deemed empirical by those accustomed to English methods. But, in addition to these three annual courses, lectures are delivered on special subjects. At Freiburg (in Baden), in the summer semester of 1891, these were:

    • History of National Economy and Socialism.
    • Agrarian and Industrial Policy, including the Labour Question.
    • History of Statistics.

The list of special lectures at Berlin, to take the most completely equipped of the universities, shows more clearly the wide range of subjects dealt with under the term Economics. In the summer term, 1892, besides the ordinary annual courses, there were courses of lectures on the following subjects:

    • Theory of Statistics.
    • History of Statistics.
    • Statistics of the German Empire.
    • The Economic and Social History of Germany from the end of the Middle Ages to the Peace of Westphalia.
    • History and Modes of Industrial Undertakings.
    • Money and Banking.
    • Early Commercial and Colonial Policy (till 1800).
    • Industrial and Commercial Policy.
    • The Social Question.
    • Forms of Public Credit.

In addition to lectures, necessarily more or less formal, opportunities are afforded for systematic instruction in classes and in the seminar. The latter institution varies considerably, according to the character of the students frequenting particular universities, for its efficiency, and accord ing to the position of the professor undertaking it, for the direction of its studies. Each teacher collects around himself a group of students who follow his method, adopt his attitude, and frequently devote themselves to those branches of economic research which have occupied his attention. Thus, at Strassburg, Professor Knapp’s seminar deals chiefly with agrarian questions; at Berlin, Professor Wagner’s influence is seen in the predominance of finance and financial topics among the subjects discussed. At Munich, to pass to the question of organisation and method, the two professors join in holding a seminar in which “there are about twenty-four young men taking part. Each of them has to undertake some work: the younger ones get a book to read, and have to report on it; the more advanced have to treat a subject after reading several books on the subject; the most advanced have to make a work themselves, the professors aiding them in furnishing material and giving assistance.’ At some universities there are two seminars, at others one. It is a matter for regret that, with all these opportunities, a comparatively small number of students are ranked as advanced. The explanations offered are many, but probably a very adverse effect on the study is produced by the paucity of the positions to which a thorough economic study can serve as an introduction. Teaching posts are few, and the requirements in the State examinations for the legal and administrative services are, if not as in many cases nominal, strictly limited to an elementary knowledge.

In some of the technical schools, and in all the schools of commerce, instruction in some branch of economics forms part of the regular course, and, in these latter, an examination is held. In the former, however, the subjects thus taught are distinctly subordinated to the technical sciences which occupy the chief attention of the students, while in the schools of commerce only those branches receive adequate treatment which bear or appear likely to bear upon commerce in its practical aspects.

HOLLAND.

The connection between the universities and the legal profession is close in Holland, none but doctors of jurisprudence being qualified to practise as advocates. This is a circumstance which has a material effect upon the study of economics, inasmuch as this, in its more elementary branches, forms one of the obligatory subjects of the first examination for the degree. Thus, so far as this one profession is concerned, a certain knowledge of economics is necessitated.

In the higher administrative service no such knowledge is obligatory, but it is considered that officials who possess the degree of doctor of political science have better chances of promotion. For this degree a thorough study of economics is required. In certain other government services demand is made for acquaintance with certain branches of the subject. In the examinations for the consular service the ‘general principles of economics’ and the ‘elements of statistics,’ chiefly with regard to trade and shipping, form subjects of examination. A similar knowledge is required for the diplomatic service. In none of these cases, it should be noted, is attendance at specified courses compulsory. The subject forms part of the examination.

The requirements indicated above explain to some extent the position which economics occupies in the four Dutch universities. It is a necessary subject for two degrees—the doctorate in laws and the doctorate in political science. But the nature of the knowledge required differs greatly. In the former it is elementary, not going beyond the first principles of the theory, while in the latter case the examination necessitates a really careful and detailed study. In addition to the general course of lectures taken by all, candidates for this latter distinction usually attend two other courses, one in capita selecta (taxation, finance, socialism, &c.), and another in statistics. These courses, unlike those at German universities, extend throughout the academic year, i.e. from September to July. For advanced students discussion classes are held, where the students, after a previous study of a chosen subject, meet to discuss it among themselves and with the professor. Before proceeding to the degree of doctor a candidate has to write, and afterwards to defend, a dissertation on some branch of the general science which he has taken up. Thus, in the case of political science, the thesis may be on some economic question. Outside the universities the chief study of economics takes place in the intermediate schools, where, during the fourth and fifth years of the five years’ curriculum, it is taught for two hours weekly by a doctor of political science, or by another teacher duly qualified by a special examination. At the Polytechnic at Delft there is a chair of economics, but neither is attendance at the course obligatory, nor does it form one of the subjects of examination.

BELGIUM.

By the law of 1890, which provides the regulation for higher instruction, political economy is made obligatory for the attainment of the degree of doctor of laws, a distinction proving a professional qualification, and for the grade of engineer, the course for the former involving some forty-five lectures, that for the latter some fifteen. In both cases the subject is taken in the earlier years of study. Students training for these professions would appear to form the great bulk of those attending economic lectures at the universities. In neither case can the course be said to furnish more than elementary instruction.

The universities have made provision outside these State requirements for more advanced students. The candidates for the degree of doctor of political science have to show a more thorough acquaintance with economic subjects. At the University of Ghent the course which is provided for them is considerably longer; still more stringent regulations prevail at the University of Louvain, for the degree of  ‘docteur en sciences politiques et sociales.’ The important regulations are as follows :—

ART. 5.

Pour être admis à l’épreuve du doctorat il faut:

    1. Avoir acquis depuis une année au moins le grade de docteur en droit.
    2. Avoir pris une inscription générale aux cours du doctorat en sciences politiques et sociales et avoir suivi les cours sur lesquels porte l’épreuve.
    3. Présenter, sous l’approbation du président de l’École, un travail imprimé sur un sujet rentrant dans le cadre du doctorat.

ART. 7.

L’épreuve comprend un examen oral d’une heure et demie. Cet examen porte:—

    1. Sur six branches portées comme principales au programme de l’École.
    2. Sur deux branches au moins choisies parmi celles qui sont portées comme branches libres au programme de l’École ou—avec l’autorisation du président de l’École—parmi celles qui sont portées au programme de l’université.
    3. Sur le travail présenté par le récipiendaire.

The list of lectures for the two years’ curriculum, 1892-3, 1893-4, is as follows :-

For the first year—Histoire parlementaire de la Belgique depuis 1830, la législation ouvrière comparée ; le droit public comparé; de la neutralité de la Belgique et de la Suisse; du régime légal des sociétés commerciales en droit comparé.

For the second year—Histoire diplomatique de l’Europe depuis le Congrès de Vienne; l’Evolution économique au XIXe siècle; les institutions de la France et de l’Allemagne; lé régime colonial et la législation du Congo; les associations en droit comparé.

Seminar or class instruction is given at the universities, though the particular form it takes varies with the other organisation provided, and the character of the students. At the University of Ghent a class supplementary to the lectures is formed, where discussion takes place; at Louvain Professor Brants directs a ‘cours pratique,’1 the members of which (some dozen in number) write treatises, discuss economic movements, and make excursions to centres presenting features of economic interest.

1Conférence d’Économie Sociale. Rapport sur ses travaux, 1891-92. Louvain.

ITALY.

Outside the universities there are in Italy but few institutions which give much instruction in economics. Though courses are delivered at the superior schools of commerce, as, for instance, at Genoa, Venice, and Bari, and the Polytechnic School of Milan, which compare in their nature with those existing at similar places in Austria and Germany, the main aim of such schools, and the limited extent to which they are frequented, prevent them from obtaining any control over the development of economic teaching in the country. It is, then, to the universities that we must look for information as to the methods chiefly employed. At them economics is studied as a subsidiary subject to law, being taken by students in their second year. There are three courses at which attendance, or, to speak more accurately, inscription is obligatory on legal students. In the case of the three obligatory courses the attendance is fairly regular, owing, it is said, to the combined effect of the latitude allowed in the teaching of the subject and the position of the professor as examiner. Without passing the economic examinations students cannot attain to legal degrees. The courses are those in Economic Theory and Administration, Finance, and Statistics. According to the condition of the university these are taught by the same or different teachers, in most cases by the professors who are appointed and paid by the State. In addition to these courses others are given at the option of the teachers, either professors or docents. The attendance at these is not good, though in many cases a large number of students enter themselves as a mark of courtesy towards the lecturer. It costs them nothing, as they pay a compound fee, and it benefits him considerably if a docent, as he receives from the State a payment proportionate to the number of students registered for his courses. In addition to the examination, a candidate for the legal degrees presents a thesis which may, and not infrequently does, deal with some economic subject.1 The study of economics is, moreover, obligatory on students seeking the higher official careers. Many complaints are made as to the position occupied by economic studies in Italy. Their connection with law creates no doubt a certain and a large audience in the lecture room; but, as one Italian professor points out, students do not remain there long enough to acquire anything like a sufficient knowledge of the subject. They come from the schools wholly unprepared, and they leave the university without having undergone a training thorough enough to counterbalance the loose economic notions gathered from their more diligent study of the newspapers. The study of economic facts does not seem to have had sufficient place in the universities of Italy. Attempts are now being made to remedy this defect by the formation of discussion societies among the students of economics, and the encouragement of research into statistical and similar questions.

1Professor Tullio Martello calculates that at the University of Bologna some 15 per cent of those graduating in law present a thesis dealing with economics.

At the minor technical schools lectures are delivered on elementary economics, finance, and statistics.

RUSSIA.

The conditions under which Economics is taught in Russia bear a superficial resemblance to those prevalent in the Latin countries, where it is annexed to the study of law, and pursued very much as a subject of secondary importance. Here, too, it forms part of the regular training through which a jurist must pass in his four years’ curriculum. There are three economic courses which he must attend, and in the subject-matter of which he must display sufficient knowledge in the May State examinations. These are on Economic Theory, Statistics, &c., and Finance. In addition to formal lectures, the professors in charge of the subject may, and sometimes do, organise classes, discussion societies, or seminars, though attendance at these is not obligatory.

The provision for further and more detailed study is considerable. A student who has finished his law studies with a diploma of the first degree can remain in the university, if he wishes, for more special research in one or other subject (Roman law, political economy, private law, financial law, &c.), under the supervision of the special professor or professors. Such a student is examined, and, if successful, obtains the title of magistrandus of the subject in question. Then he must present a dissertation and defend it, after which he obtains the degree of magister. After a second dissertation and disputation he attains the higher degree of doctor of his special subject.

UNITED STATES OF AMERICA.

The conditions under which the study of Economics is carried on in the United States of America are widely different from those which prevail in the countries of continental Europe. On the one hand, there is no inducement held out to students by its inclusion among the subjects of state or professional examinations. On the other, there is evidence in the importance which such subjects have assumed at the universities and colleges of a strong public sentiment in favour of their careful study far exceeding that in existence either in these countries or in the United Kingdom. In one respect the regulations of the colleges have had an important effect, independent of the action which they have taken in respect of the strong public demand. Owing to the freedom of the students in most of these institutions from prescribed and compulsory courses of study in most stages of their career, Economics has escaped being relegated, as, for instance, in England, to the position of a subject outside the usual curriculum, and optional only in some one or, perhaps, two stages. Where such prescription does exist it is not deemed a subject necessarily unfit to form part of a compulsory general course. Its inclusion, to some extent, would probably be demanded by the strong public opinion which has grown up during the past twenty years.

The causes of the popularity of Economics are stated with fair unanimity by various writers, though their respective importance is very differently estimated. In the first place, the very novelty of economic studies is itself in favour of their ardent prosecution. Till comparatively recently, it has been said till between 1870 and 1880, they were disregarded because unknown. Now they are seized, studied, and followed because they offer, or seem to offer, an explanation of the vast and complex economic condition which is in process of rapid evolution in this country at once so great and so new. So, too, in England some half century back or more the theories of the economists of that time were received by large numbers as an intellectual gospel. But in the next place the circumstances attending this ‘novelty’ of study have considerable consequences. That the study of Economics is a novel study is important, but it is of equal importance that it is novel at the present time and under present conditions. The American economists have not to shake off the half-uttered, half-silent opprobrium attached to their subject through the action of the more numerous though less conspicuous of their predecessors in their rigid adherence to incomplete or ill-founded theories. They are fortunate in entering upon their teaching at a time when the need of inductive inquiry and training is more fully recognised. This gives a more systematic aspect to the economic instruction demanded from them than was the case in England. In the third place, the campaign in favour of civil service and tariff reform has drawn a great deal of attention to those departments which deal with finance and the more prominent aspects of political life. Lastly, it is urged that the political eagerness which so largely affects the younger generation of Americans combines with the foregoing to crowd the economic lecture rooms with anxious and willing students. Economics is needed by politicians, and ‘we are all politicians,’ writes one professor; it is needed by journalists both because they are keen for political knowledge themselves and because they write for politicians.

The same causes which stimulate economic students have often led to its connection with political science, with history, and in some instances with general sociology.

Returns from several of the universities show the large number of students who attend economic lectures, and the comparatively large number who pass into advanced courses. The universities differ so much among themselves that no common standard of teaching exists. In some the elementary courses are very elementary, in others more thorough than might be concluded from the name. Thus at Harvard these include a study of Mill’s ‘Principles of Political Economy,’ lectures on general theory, or on what is termed descriptive economics, including a survey of financial legislation, while in addition a course is provided on the Economic History of England and America since the Seven Years’ War. In some cases a great part of the junior work consists in the use of text-books, and proceeds rather by class instruction and interrogation than by lecture. Turning to the consideration of the courses organised for the more advanced students, it is highly satisfactory to note the very considerable proportion which these form of the total number engaged in economic study. According to the information collected from various quarters, at Harvard they amount to some 38 per cent; at Columbia College to 41 per cent; at Cornell to 26 per cent. At some others they do not present so favourable an appearance, though at Michigan I am informed that the twenty returned as ‘advanced’ consists entirely of very advanced students, all the others being included under the heading of elementary. No doubt students described as advanced at one institution may not be so regarded at others, for, as has been already suggested, these vary very greatly as regards both their courses and the attainments of their students. With regard to the former, those provided at some of the better known and more highly developed and equipped universities afford a description of the nature of the training offered in the United States. At Harvard the advanced courses for the year 1892–93 are as follows:—

Full courses

    • Economy Theory—Examination of Selections from leading writers.
    • The Principles of Sociology—Development of the Modern State and its Social Functions.
    • The Social and Economic Condition of Working Men in the United States and in other Countries.
    • The Economic History of Europe and America, to 1763.

Half-courses

    • History of Tariff Legislation in the United States.
    • Railway Transportation.
    • The Theory and Methods of Taxation.
    • History of Economic Theory down to Adam Smith.
    • History of Financial Legislation in the United States.

At Columbia College the courses are as follows:—

    • Elements of Political Economy.
    • Historical and Practical Economics.
    • History of Economic Theories.
    • Science of Finance.
    • Science of Statistics.
    • Railway Problems.
    • Financial History of the United States.
    • Tariff and Industrial History of the United States.
    • Communism and Socialism.
    • Taxation and Distribution.
    • Sociology.

At Cornell the lectures which succeed the purely elementary ones are not quite so full, but consist of courses on—

    • Economic Reforms.
    • Finance.
    • Economic Legislation.
    • Statistics.
    • Economic History.
    • Financial History of the United States.

There are few universities which do not offer some courses beyond these on elementary theory and history. As a rule, finance and some other branch of applied economics are added. Where graduate schools have been established, as, for instance, at Harvard and at Michigan, the study proceeds very much on the lines indicated above, so far as the former is concerned. At Michigan, the advanced courses are distinguished into intermediate and graduate. Intermediate courses treat of the following:—The Transportation Problem. Principles of the Science of Finance. Theory of Statistics. History and Principles of Currency and Banking. History of the Tariff in the United States. History and Theory of Land Tenure and Agrarian Movements. Industrial and Commercial Development of the United States. History and Theory of Socialism and Communism. History of Political Economy. Graduate courses:–Critical Analysis of Economic Thought. Critical Examination of the Labour Problem and the Monopoly Problem.

Most universities have, in addition, established seminars, where study proceeds on the lines with which continental students are familiar. Individual members, in most instances graduates, and all advanced students, undertake particular subjects on which they prepare reports or treatises to be read and discussed at the weekly meeting. During their researches they are more or less under the direction of the professor or teacher who undertakes the courses in connection with the department of economics under which their subject falls. At Yale there are two seminaries and one discussion society; at Columbia College there is one for students who have studied only one year, two (in Economics and Finance) for those who are more advanced. The value of the work produced differs, of course, with the character of the university. At Harvard and the other more highly developed universities it is naturally very high.

In certain other countries the attention given to the subject of Economics demands for different reasons less detailed notice. In some instances the resemblance to countries already described renders further description superfluous; in others the geographical limitations of the country, or the comparative absence of opportunities for such special branches of the higher education, necessitate a much slighter notice than that given to the foregoing countries.

In Spain the connection between economic and legal studies is very similar to that existing in Italy. Students of the first and second year attend courses in Economics and Finance, Statistics being apparently nowhere insisted upon. At some of the universities an attempt is made to supplement these elementary courses by conferences and by visits, both to industrial undertakings, as factories, mines, &c., and to financial establishments, as banks; while the introduction of sociological institutes or seminars is looked for at others, as, for instance, at Oviedo.

In Sweden ‘there are two professors of political economy, one at the University of Upsala, one at the University of Lund, both belonging to the Faculty of Law, and teaching in addition to Political Economy some purely juridical subjects. There are also two professors in Politics and Statistics, one at Upsala, one at Lund, both belonging to the Faculty of Arts, and teaching at their discretion, Public Law, either Swedish or foreign, and Statistics.’ ‘The two professors of Political Economy in the Faculty of Law have to prepare and examine all the students who go in for the State examinations for entrance to the different branches of the civil service. But as Political Economy possesses very little importance in any of the three forms of these examinations, as compared with Jurisprudence, little stress is laid on its study in this faculty. Of the two other professors, one (at Upsala) lectures chiefly on Politics, the other on Statistics, both these studies being optional for the two arts degrees. The theory of Political Economy is not taught. Seminar instruction is arranged to supplement that given in the lecture courses.

In Norway, at the University of Christiania, the system is nearly identical with that of Sweden. There, too, it is found that, owing to the complete subordination of Economics to Law, the knowledge required is elementary in character.

The same impulses which direct the attention of young Americans to the study of Economics are felt in Canada. At the University of Toronto the importance attached to such studies is adequately shown by the large attendances present at the several courses. These courses are carefully arranged and graduated so as to furnish the student with a sound knowledge of the various branches of the subject, and to fit him to undertake, as he is expected to do in his latter years, research into some branch of economic fact.

In Switzerland, the position held by economic studies is, on the whole, at least as favourable as that in the southern countries of Germany. A knowledge of Economics is obligatory on those entering the legal profession, while, owing to the arrangements made, the duty of examining the candidates may, and in practice, I believe, does fall largely on the university professors. Moreover, in the university curricula, the place of economics, so far as Berne is concerned, is very fortunate. True, the subject is optional, as indeed are all subjects for the doctorate, but it may be taken for either the legal or the philosophical doctorate (Dr. Juris, or Dr. Phil.). At the Zürich Polytechnicon it is taught, being obligatory in some form or other for the diplomas of forestry and agriculture. In addition there is a fair voluntary attendance at these lectures. The system of instruction presents no features requiring particular notice. The chief courses are on National Economy and Finance, with the frequent addition of Practical Economics. These are supplemented by special courses at the option of the teacher, and by the seminar.

 

APPENDIX II.

On Economic Studies in France.
By Henry Higgs.

Economic teaching in France, so far as it consists of lectures regularly delivered at the same place by the same person, is to be looked for in—

(i.) The Collège de France, Paris;

(ii.) The Conservatoire des Arts et Métiers, Paris;

(iii.) The Université de France, consisting of the aggregate of local ‘universities,’ or faculties officially recognised, in Paris and the provinces;

(iv.) The free or unofficial faculties and schools in Paris and the provinces, including all the Catholic ‘universities’ (which cannot come to terms with the State on the question of the faculty of theology), the École Libre des Sciences Politiques, Paris, and others.

A certain amount of economic instruction is also imparted in the Écoles supérieures du Commerce, generally endowed by the municipalities of commercial towns. Elementary notions of Economics are officially prescribed as part of the programme of elementary schools.

(i.) It is at the Collège de France that one expects to find leading teachers of Economics in France. The traditions of its chair (which was founded in 1830), and the authority vested in its occupants, added to the attractions of a scientific post in Paris, have been a sufficient inducement for the most eminent economists to offer themselves for appointment here. The stimulus of contact with growing, vigorous, and inquiring minds is not, however, afforded to the professors, and they have to fight against a tendency to fall into prosy sermons and easy repetitions of old theory. No fees are charged to the students, nor is any record kept of their names unless they wish to obtain certificates. The lectures are delivered twice a week (two on Economics by M. Leroy-Beaulieu, and two on Statistics by M. Levasseur), in the afternoons. The auditors are for the most part a casual collection of shifting persons, of whom many are foreigners passing through Paris, who attend once or twice out of curiosity to see the lecturer. There is no discussion either during or after the lectures. The professors are paid a fixed stipend by the State. They appear to regard their lectures in the main as vehicles for the dissemination of generally received economic theory. So far, however, as they employ their leisure in prosecuting original research, their stipends may be regarded as an endowment for the advancement of Economics. Their personal examples are stimulating. It would be difficult to mention two more active economists in Europe. But in their lectures they are perhaps too dogmatic to supply students with the zest of grappling with ‘unsettled questions,’ or with the incentive to enlarge, however little, the bounds of knowledge by pointing out to their hearers the frontiers of ignorance which are often in sight.

(ii.) The oldest chair of Political Economy is in the Conservatoire des Arts et Métiers, and was first filled, in 1819, by J. B. Say. The instruction now given here is of a more popular character, consisting of lectures addressed to the working classes at a late hour of the evening. M. Levasseur delivers a five-year cycle of about fifty lectures a year on Economics, and M. de Foville a four-year cycle on Industry and Statistics. There are on the average from 300 to 400 auditors. They pay no fees. The professors are appointed and paid by the Government.

(iii.) By a law passed in 1877 Economics was for the first time officially incorporated into the organisation of higher education in France, by being made an obligatory subject in the second year’s studies of the faculties of law. Economics in France has, it is said, laboured under the disadvantage of offering no opening for a career. On the other hand, the youth of the country flock to the schools of law, for to lawyers all careers are open— politics, journalism, literature, education, legal practice, and many official appointments. The professor of law is overworked, and the professor of Economics underworked. The faculty of law, therefore, generally expects of its professor of Economics that he shall be able to help in legal instruction and examinations; and there has been a tendency to select a lawyer rather than an economist for these chairs. This reproach, however, is rapidly being removed, and the new professors of Economics are in many cases vigorous and promising in their proper spheres. Economics has recently been transferred from the second to the first year’s programme. The law students are said to show a better intelligence of law now that they also study Economics. It can hardly yet be stated what effect this organisation will produce on Economics itself.

In addition to this obligatory study, Economics may be taken as one of the eight optional courses at a later period of preparation in the law faculties. For this purpose there is generally a special course of lectures on Finance, in which financial legislation is a prominent topic; but the option in favour of Economics is not much exercised.

The professors and lecturers in Economics and (in italics) in Finance in the official faculties of law are as follows:—

Paris. MM. Beauregard, Alglave and Ducrocq; Fernand Faure (Statistics); Planiol (Industrial Legislation); Maroussem (Monographs).
Aix: M. Perreau.
Bordeaux: MM. St. Marc, de Boech.
Caen: MM. Willey, Lebret.
Dijon: MM. Mongin, Lucas.
Grenoble: MM. Rambaud, Wahl.
Lille: MM. Deschamps, Artus.
Lyons: MM. Rougier, Berthélémy.
Montpellier: MM. Gide, Glaise.
Nancy: M. Garnier.
Poitiers: MM. Bussonnet, Petit.
Rennes: MM. Turgeon, Charveau.
Toulouse: M. Arnault.

There are also at Montpellier lectures on industrial legislation by M. Laborde.

(iv.) The position of the Catholic ‘universities’ has already been referred to. While following the lead of the State in associating economics with law, they have the advantage of recruiting among their students a large number of those who desire to enter the Church with a training in economic science as an aid to the study of social problems. The respective professors are MM. Jannet (Paris), Baugas (Angers), Béchaud (Lille), Rambaud (Lyons), and Peyron (Marseilles).

The École Libre des Sciences Politiques, Paris, directed by M. Boutmy, is perhaps the most hopeful academic institution in France for the promotion of economic study. Lectures are given by MM. Cheysson (Economics); Stourm, Dubois de Lestang, Plaffin, Courtin (Finance); Levasseur (Statistics); Dunoyer (History of Economics since Adam Smith); Arnauné Foreign Trade and Customs Laws); Lévy (Banking); P. Leroy-Beaulieu (Colonial Systems); Paulet (Industrial Legislation); and Guieysse (Industrial Problems). In addition to these lectures, which are well attended by paying students, there are discussions and classes for original work on the seminar plan. Travelling scholarships are also given, and excellent work is done, to which the general scheme of instruction largely contributes. The primary function of the school is the thorough intellectual equipment of young officials for the State. Foreign languages, travel, and comparative study of laws and social institutions are encouraged, together with an intelligent interest in history and politics. The personal assistance rendered to individual students by the professors, the seminar, and the scholarships, the comprehensive breadth of view, and the rigid impar. tiality of this school are, as yet, unique in France.

Other economic lectures in Paris which require mention are those of M. Colson, at the École Nationale des Ponts et Chaussées (where the Government non-military engineers and road surveyors are trained), of M. Cheysson at the École Nationale des Mines (also under Government), of M. F. Passy at the École des Hautes Études Commerciales (endowed by the municipality), of M. Émile Chevallier, &c. Lectures (by M. Guérin) are organised by the Société dEconomie Sociale, founded by Le Play. M. Demolins, the leader of a secession from this school, also delivers a course of lectures. There is, on the whole, too much diffusion of separate economic lectures in Paris.

An impressive plea has lately been published by M. Chailley-Bert for the recognition of distinct economic faculties, and for such endowments as will spare professors from the need of spending their time and brains upon accessory sources of income.

APPENDIX III.

On the Condition of Economic Studies
in the United Kingdom.
By E.C.K. Gonner.

Though the full extent of the disadvantages under which economic study in this country suffers can only be realised from a fairly detailed account of its position in the various universities and with relation to certain professions, it will not be out of place to preface this report with a few words as to their nature.

(a) In the first place it is a matter of serious concern that economics is not regarded as a necessary part of any professional curriculum. This particular hardship, however, might be faced with comparative equanimity were there existent in this country, as for instance in the United States of America, a strong body of popular feeling in support of its study and its efficient teaching. But, despite frequent assertions to the contrary, I believe, and in this I shall have the concurrence of many colleagues engaged in teaching, that there is no such body of feeling. Its absence has been variously accounted for. To a great extent it is no doubt part of the legacy of distrust and misunderstanding due to the false view of Economics placed before a former generation, and it will probably be a long time before the popular conception of an economist as a compound of text-book theory and ignorance of fact can be entirely dispelled.

(b) Owing largely to the early prominence of the abstract school of economic thought in England the position which the subject holds in the University curricula is far from satisfactory. It is treated as a subject narrow in scope and subordinate—necessarily and naturally subordinate— to other subjects. But this is by no means the position which it should hold, and now that the importance of the studies of economic fact and administration is more clearly seen, the impossibility of effective teaching within the prescribed lines has become glaringly apparent. At present indeed English economic teaching is without a regular system. It is usually supposed that prescribed University courses should offer a means of systematic training in the various subjects, the pass courses of ordinary training, the honours courses of advanced and thorough training. So far as Economics is concerned, this is precisely what the Universities do not provide. With one possible exception they offer at the present time little more than isolated opportunities of showing economic knowledge in examinations primarily devoted to other subjects.

In the United Kingdom the encouragement of the study of Economics rests entirely with educational bodies. So far as professional examinations and curricula are concerned it meets with almost universal neglect. This is wholly so with regard to the examinations qualifying for the practice of law, either as barrister or solicitor, and partly so in the case of the Civil Service Examinations. For these latter Economics may be taken up, as may almost any other subject included in the Sciences and Arts. It is not recognised, that is to say, as more cognate to the administrative callings for which these examinations qualify, than is Chemistry, for instance; indeed, in comparison with many of these other subjects it is at a discount owing to the smaller maximum of marks assigned to it. In other words, it is excluded from the legal curriculum; in the Civil Service Examinations it is an optional but not an important subject. Elementary Political Economy is one of the optional subjects in the examination for chartered accountants, and is obligatory on candidates for the voluntary examination recently instituted by the Institute of Bankers.

At the Universities it receives an insufficient recognition in the degree courses, but as its position varies a great deal a brief summary of the usages of the various Universities with regard to it may be given. Degrees are granted in England by the five Universities of Oxford, Cambridge, Durham, London, and Victoria; in Scotland by the Universities of Edinburgh, Glasgow, Aberdeen, and St. Andrews; in Ireland by Trinity College and the Royal University of Ireland.

ENGLAND.

At Oxford it is an optional subject which may be taken up as one of the three selected subjects for the pass B.A. degree. As studied for this examination it is mainly elementary and largely theoretical, many of the questions relating to certain prescribed portions of the works of Adam Smith and Walker. To pass this examination, for which the yearly number of candidates presents an average of two hundred, demands common sense and a fair general acquaintance with leading Economic topics. A paper on Economics is included among those set in the Honour School of Modern History.

At Cambridge the position occupied by Economics in the University curricula is far more satisfactory. In some shape or other it forms part of three degree examinations. All candidates for the ordinary pass B.A., after passing the general examination, have to take up a special subject for their concluding study. Of these, sixteen in all, there are seven arts special subjects, one of which is Economics. The special examination in Economics (Political Economy) consists of two parts, which may be taken at separate times:—

Part I.—Three papers.

    • Two in General Economic Theory.
    • One in Economic History.

Part II.—Three papers.

    • Two in Taxation and Economic Functions of Government, with History of Trade and Finance, 1760–1860.
    • One in General Theory of Law and Government.

In the Moral Science Tripos (Honour B.A.) there are six obligatory papers, two being assigned to Political Economy (i.e. Theory), while in addition advanced Political Economy ranks as one of the optional subjects, two of which must be passed in by a candidate desirous of being classed. Lastly, in the Historical Tripos (Honour B.A.), one paper is in Economic History, the paper on general History of England also being supposed to require some Economic knowledge. Further, candidates who desire it may take Political Economy and theory of Government with International Law as an alternative to the study of a second special subject. Of these three examinations the one which seems most satisfactory, so far as Economics is concerned, is the special for the pass B.A., which embraces at once the four important branches of administrative, theoretical, historical, and financial Economics, and it is to be regretted that it has not yet been possible to organise an Honour examination on corresponding lines, but wider and more advanced. Were such in existence it would furnish English students with similar encouragement to systematic study and similar opportunities to those provided in the better developed Continental schools.

In the University of Durham, in addition to the obligatory subjects, two optional subjects have to be chosen by candidates for the degree. These are selected out of a number of subjects, of which Economics is one. The knowledge required is not of an advanced nature.

In the University of London Economics holds no position but the somewhat unfortunate one of an optional subject for candidates proceeding from the B.A. to the M.A. degree in Moral Science, a position which at once restricts the number of students likely to study it, and prevents its study from extending beyond the knowledge of general theory. It is not a subject, either optional or obligatory, at any other examination.

In the Victoria University Economics, comprising Political Economy and Economic History, forms one of the twelve optional subjects, of which two have to be selected for the final year of study by candidates for the pass B.A. degree, the two other subjects being more or less restricted. Economic Theory or History may also be taken in conjunction with Modern History as one subject by candidates who wish, for instance, to take Modern History but not Ancient History. As, however, nearly all the other subjects are, with some difference of standard or period, subjects at the Intermediate or Second-year Examination, in some instances compulsory, and again in certain cases subjects at the final examination, the study of Economics, involving as it does the entry of the student upon a wholly new subject during his final year, is naturally discouraged. Further, Economic Theory (Political Economy), like any other arts or science subject, may, by permission, be substituted for one of the two selected general subjects, Ethics or Modern History, at the intermediate stage of the Law degree (LL.B.). A course of lectures in Political Economy has to be attended by candidates for the Honours degree in History. It is not a subject in the examination.

SCOTLAND.

By the regulations of the Commission applicable to all Scotch Universities Economics holds a two-fold position.

(a) With regard to the ordinary M.A. examination, it is one of the three optional subjects which have to be selected out of the usual arts and science subjects. In all, seven subjects must be taken, but of these four are more or less prescribed. The course which must be attended consists of at least 100 lectures.

(b) It is further a compulsory subject for the first examination for the Agricultural B.Sc. In this case the knowledge required is much slighter, and naturally much more closely related to rural economy.

IRELAND.

At Trinity College Economics is part of one of the seven groups in which the Honour degree may be taken, the other subjects in this group being History and Law. All candidates for the law degree must be graduates in Arts, but not necessarily graduates in honours, or if in honours, in this particular group. It is also included among the options for the pass degree.

In the Royal University of Ireland Economics (Political Economy) is an alternative with Ethics in one of the three groups, one of which must be passed by candidates for the ordinary pass B.A. In the examinations for the Honour degree (B.A.) it, with Civil and Constitutional History and General Jurisprudence, constitutes one of the six groups open to the student. It holds a very similar position in the examination for the M.A. degree.

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The foregoing account shows clearly how little opportunity is given for the systematic study of Economics as a preliminary to degree examination, and especially in the case of honours. It is certainly very unfortunate that an able student anxious to graduate in honours is almost precluded from devoting a large amount of attention to the study of Economics.

In face of this tacit discouragement, so far as examinations are concerned, the provision for teaching made in many places by colleges and universities is almost a matter for surprise. At both Cambridge and Oxford it is satisfactory in all but one respect. It is varied, copious and comprehensive, but—and this is a matter of regret—it is not systematic. At each of these universities there is a professor engaged in active teaching, while other lecture courses are provided by college lecturers. At the universities and colleges in the rest of England the provision for teaching is of necessity less complete. At those best equipped, instruction in Economics depends on the energy and vigour of a single teacher, supplemented, perhaps, by an occasional course of lectures by some other Economist, while at the rest, if taught at all, it is attached to the duties of a teacher principally engaged in, and probably principally interested in, teaching some other subject, for, as a general rule, the teaching of Economics in conjunction with some other subject has meant little more than that the teacher of some other subject has had to give a course of lectures on General Economics. At two of the three colleges of the Victoria University Economics has separate teachers, at Liverpool one holding the rank of professor, at Manchester one holding that of a lecturer. At Leeds, on the other hand, there is no teacher of Economics. At the other university colleges in England the two London colleges possess each a professor, though the professor at King’s College delivers Economic lectures only during the six winter months. At the University College, Nottingham, Economic lectures are delivered by a professor at the same time engaged in teaching history and literature. The other colleges (Birmingham, Bristol, Sheffield, and Newcastle) at present make no provision for teaching a subject which they find so discounted as a subject for examination.

In Wales two of the University Colleges (Aberystwith and Cardiff) have made some sort of provision for Economic teaching by the appoint. ment of lecturers in History and Political Economy, while at Bangor Economics is tacked on to the duties of the Professor of Moral Philosophy.

In Scotland there is a fully instituted chair of Political Economy at the University of Edinburgh, and measures are in progress for the endowment of a Professorship at Glasgow, where the Economic work has recently been performed by a lecturer acting as assistant to the Professor of Moral Philosophy. At St. Andrews a yearly course of lectures is delivered by the Professor of Moral Philosophy.

In Ireland, at Trinity College, Dublin, there is a Professorship of Economics. At the Queen’s Colleges of Belfast, Cork, and Galway this teaching is combined with that of Jurisprudence, and limited to a very short portion of the year. Owing to the great differences existing between the courses delivered at the various institutions, and the entirely diverse character of the respective audiences, it is impossible to give any satisfactory statistics of attendance. From most quarters come complaints. Indeed, with the two possible exceptions of Oxford and Cambridge, it is difficult to imagine a more complete indifference to the scientific study of Economics than that displayed at the present time.

In addition to lectures, more informal instruction is often imparted to more advanced students, but the formation of a seminar in Economics has been undertaken but seldom, if at all. That this is due not to lack of will on the part of the teachers in those colleges where Economic teaching is entrusted to a separate teacher, but mainly to the singular deficiency in advanced or even moderately advanced students, is shown by the readiness with which individual instruction, often involving much sacrifice of time, is given to such students when they do present themselves. Such an institution can be successfully introduced only when Economic studies are so recognised as to be able to attract the abler students in a university or college.

Attempts to develop popular Economic instruction by means of evening classes, and separate courses of lectures, have been made by the University Colleges and other institutions, and by the Societies for the Extension of University Teaching; and at some of the former particular attention has been paid to the Economic teaching, noticeably at Owens College, Manchester, and University College, Liverpool. The class of students attracted to these lectures may be spoken of very favourably. From the reports and information supplied by the Societies, it would seem that though the attendance at Economic courses, when given, is good, the demand for them is not very great. The interest shown in the subject in some one or other of its branches is said to be reviving—certainly to be greater than it was some few years ago. There has been a decided increase in the demand for lectures on Economics, and subjects partially economic, during the last two years.

Economic studies in England require at the present time organisation and encouragement. As to the ability of English Economists and the quality of their contributions there can be no doubt; but, when compared with continental countries, England is sadly lacking in the number of Economic students. Where they have many, she has few. As has been said, this is largely due to the unfortunate positions to which Economics has been relegated in many Universities, and its neglect so far as professional callings are concerned. On the other hand, the revival of interest in Economic matters, so abundantly manifested, makes it more than ever desirable to provide means and opportunities for sound scientific training.

Source: Methods of Economic Training in this and other Countries. Report of the Cunningham Committee, Report of the Sixty-Fourth Meeting of the British Association for the Advancement of Science held at Oxford in August 1894, pp. 365-391.

Also: at the Biodiversity Heritage Library Website; and at Harvard College Library, Gift of the Overseers Committee to visit the Department of Economics.

Image Source: William Cunningham page at the Trinity College Chapel website.

 

Categories
Harvard Teaching Undergraduate

Harvard. Senior year political economy. Levi Hedge, 1825-30.

Political Economy was in the Harvard undergraduate program at least since 1825 when Levi Hedge included Jean Baptiste Say’s Treatise of Political Economy  (a textbook that cost approximately $67 in 2021 prices) as part of the senior year course in the offerings of the department of moral philosophy, civil polity and political economy. 

___________________________

DEPARTMENT OF MORAL PHILOSOPHY, CIVIL POLITY, AND POLITICAL ECONOMY.

This is at present exclusively under the superintendence of Levi Hedge, LL. D., Alford Professor of Natural Religion, Moral Philosophy, and Civil Polity.

Instruction in this branch is conducted through studies and recitations in Stewart’s Elements of the Philosophy of the Mind; Paley’s Moral Philosophy; Brown’s Philosophy of the Human Mind, abridged by Dr. Hedge; Say’s Political Economy; and Rawle on the Constitution of the United States.

These studies commence with the Junior year, in Stewart’s Elements; the first volume of which the Class finish about the middle of October. After this they enter upon Paley’s Moral Philosophy, which they finish usually by the end of the first term. After the end of the first term, the Juniors do not recite in these branches during that year.

Recitations are made in divisions, each consisting of one half the Class. About two thirds of each division are taken up for examination at each recitation.

Besides the above, the Juniors have a Forensic exercise, under the instruction of the Professor in this branch, every other week, on Friday; the Junior and Senior classes alternating weekly with each other in this exercise.

Recitations in this branch are heard six days in the week; one division immediately after prayers, and the other division immediately after the study bell (about 8 o’clock); an hour being occupied with each division.

The Forensic every other Friday occupies two hours.

ln the Senior year instruction in this branch is recommenced, with Brown’s Treatise on the Mind. Both volumes of this work are finished by the sixth or seventh week of the second term. The Class then enter upon Say’s Political Economy, which is finished by about the eighth week in the third term. Rawle on the Constitution then succeeds in the course, and with it instruction in this branch ceases.

Rawle is one of those studies, which are denominated “optional”; it being within the option of each individual to study this work, or Smellie’s Natural History with the instructor in that branch. In all the books used as studies in this department, about twelve pages constitute the average length of a lesson.

Besides the preceding, two lectures are delivered every week during the second term (on Mondays and Wednesdays, at 10 o’clock) one hour each, on Civil Polity and on Locke’s Essay on the Understanding.

The members of this Class also each deliver a Forensic every other week, alternating, as above stated, with the Juniors, weekly in this exercise.

Recitations are heard in this branch in the first term for two hours in the afternoon, five days in one week, and four days in the next week, and so alternately through the term; the afternoon of every alternate Friday being reserved for the Forensic.

In the second and third terms, this Class recite to the Professor one hour every day; the whole together, or six hours per week.

As it respects the time occupied by each student and the Professor, it is as follows:—

In the Junior year a Forensic being delivered every other week, and forty weeks (viz. 15 in the first term, 12 in the second, and 13 in the third) constituting the business portion of the whole year, it follows that in this exercise both the student and Professor are occupied (2 x 20) during the year 40 hours.
Each division being heard for one hour every day in the week for the first term, the time employed by each student is (6 x 15) 90 hours.
The time occupied in the Junior year in this branch by the student is…. 130 hours.
The Professor being occupied with each division one hour, that is, two hours with both, there is an occupation of (12 x 15) 180 hours.
To which add the time occupied by him in Forensics 40 hours.
The time occupied by the Professor of this branch with the Juniors is… 220 hours.
The Seniors, in respect of time occupied in the Forensic exercise, coincide with the Juniors; there being employed in it, both for the student and for the Professor, 40 hours.
In respect of time occupied by this Class in recitations in this branch, it is equal in the first term, as above stated, for the student, to (5 x 7½) for half the time of the term (15 weeks), or to 37½ hours.
And (4 x 7½) for the other half, or to 30 hours.
Constituting an occupation for the student, for the whole term, of 67½ hours.
And double that time for the Professor, he hearing each day both divisions, 135 hours.
In the second and third terms, this Class occupy the Professor six hours per week. In both terms there are 25 weeks; so that the time occupied by both student and Professor in these terms, in recitations, is (6 x 25) 150 hours.
Besides which the lectures on Civil Polity and the writings of Locke, delivered in the second term to this Class, occupy two hours per week
(2 x 12)
24 hours.
So that the time occupied by the student in the Senior year in recitations, lectures, and all exercises in this branch is, as above stated,
In Forensics 40 hours.
In Recitations, the 1st term 67 ½ hours.
In Recitations, 2d and 3d terms 150 hours
And in Lectures 24 hours.
The time occupied by the student 281½ hours
And by the Professor,
In Forensics with the Seniors, 40 hours.
In Recitations, 1st term 135 hours.
In Recitations, 2d and 3d terms 150 hours.
In Lectures with 2d and 3d terms 24 hours.
The time occupied by the Professor 349 hours.
And the general result of the time occupied in all the exercises in this branch in the whole college course is,
For the student in the Junior year 130 hours.
For the student in the Senior year 281 ½ hours.
Result of occupation of time, in recitations, lectures, and like exercises in this branch for each student 411 ½ hours
And for the Professor with the Juniors 220 hours.
And for the Professor with the Seniors 349 hours.
Result of occupation, as above, for the Professor 569 hours.

 

Source: Fourth Annual Report of the President of Harvard University to the Overseers on the State of the Institution,1828-9. Appendix, p. ii-v.

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Book prices

Hedge’s Logick ($0.70), Paley’s Philosophy ($2,00), Brown’s Philosophy (Hedge’s ed., $3.60), Stewart’s Philosophy ($2,40), Say’s Political Economy ($2.40).

Harvard University. First Annual Report of the President of Harvard University to the Overseers on the State of the University, 1825-6 .p. 51.

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Text Links

Dugald Stewart. Elements of the Philosophy of the Human Mind. Vol. One (New York, 1818); Vol. Two (New York, 1818).

William Paley. The Principles of Moral and Political Philosophy. 10th American Edition, Boston: 1821.

Thomas Brown. Lectures on the Philosophy of the Human Mind.  Abridged by Levi Hedge. Vol. One (Cambridge: 1827); Vol. Two (Cambridge: 1827).

Jean-Baptiste Say. A Treatise on Political Economy (trans. C. R. Prinsep). Third American Edition. Philadelphia: 1827.

William Rawle. A View of the Constitution of the United States of America. Philadelphia: 1825.

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One student’s recollection

Dr. Levi Hedge gave a series of profitable talks on International Law, in the second half hour of his recitations in Political Economy. Probably in the senior year (1828-29) as reported in the recollection by Samuel F. Smith (Harvard, A.B., 1829).

Source: The Harvard graduates’ magazine. vol. 2 (1893-94), December, 1893, p. 167.

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Appletons’ Cyclopædia of American Biography
Hedge, Levi

HEDGE, Levi, educator, b. in Hardwick, Mass., 19 April, 1766; d. in Cambridge, Mass., 3 Jan., 1844. He was graduated at Harvard in 1792, appointed a tutor in 1795, and in 1810 became professor of logic and metaphysics. In 1827 he exchanged that post for the Alford professorship of natural religion, moral philosophy, and civil polity, but was compelled by an attack of paralysis to resign in 1830. He published a “System of Logic” (Boston, 1818), which went through many editions, and was translated into German. He also prepared an abridgment of Brown’s “Mental Philosophy” (1827). — His son, Frederic Henry, educator, b. in Cambridge, Mass., 12 Dec., 1805; d. there, 21 Aug., 1890, was sent to school in Germany at the age of twelve, and remained five years. On his return he entered the junior class at Harvard, and was graduated in 1825. He then studied theology at the Cambridge divinity-school, was ordained in 1829, and settled over the Unitarian church in West Cambridge. In 1835 he took charge of a church in Bangor, Me.; in 1850, after spending a year in Europe, became pastor of the Westminster church in Providence, R. I., and in 1856 of the church in Brookline, Mass. In 1857 he was made professor of ecclesiastical history in the divinity-school at Harvard, still retaining his pastoral charge, but resigned the pastorship in 1872 in order to assume the professorship of the German language in the college. He was noted as a public lecturer as well as a pulpit orator. In 1853-‘4 he lectured on mediæval history before the Lowell institute. He became editor of the “Christian Examiner” in 1858. Besides essays on the different schools of philosophy, notably magazine articles on St. Augustine, Leibnitz, Schopenhauer, and Coleridge, and other contributions to periodicals in prose and poetry, he published “The Prose Writers of Germany,” containing extracts and biographical sketches (Philadelphia, 1848); “A Christian Liturgy for the Use of the Church” (Boston, 1856); “Reason in Religion” (Boston, 1865); and “The Primeval World of Hebrew Tradition” (1870). He also wrote hymns for the Unitarian church, and assisted in the compilation of a hymn-book (1853), and published numerous translations from the German poets.

Source: https://en.wikisource.org/wiki/Appletons%27_Cyclopædia_of_American_Biography/Hedge,_Levi

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Exit, Levi Hedge

“From circumstances connected with the state of his [Levi Hedge] health, his services during the last six months have been dispensed with. The department during that period was conducted satisfactorily by George S. Hillard, one of the Proctors of the University.”

Source: Sixth Annual Report of the President of Harvard University to the Overseers on the State of the Institution,1830-31. Appendix, p. ii.

Image Source:  Levi Hedge, LL.D. Elements of Logick. Boston, 1827.

Categories
Harvard Seminar Speakers

Harvard. Economics Seminary. Speakers and Topics, 1914-1915

 

 

 

The economics seminary at Harvard met fourteen times over the course of the 1914-15 academic year.  

An early sighting of Jacob Viner: R. L. Wolf [Robert Leopold Wolf, summa cum laude in Economics, A.B. Harvard 1915] and J. Viner spoke at the Economic Seminary on “The Theory of the Equilibrium of Supply and Demand,” March 29, 1915.

Earlier posts with information on the Seminary of Economics at Harvard:

Seminary of Economics 1897-1898.

Seminary of Economics 1891/92-1907/08.

Seminary of Economics 1913/14.

Request by Radcliffe Women to attend the Seminary of Economics, 1926.

Seminary of Economics 1929-1932.

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Monday, October 5, 1914

Seminary of Economics. “Studies in Spanish Archives, with Special Reference to the History of the Sheep Owners’ Gild or Mesta.” Mr. Julius Klein [Ph.D. 1915]. Upper Dane, 4.30 p.m.

Source: Harvard University Calendar, Vol. X, No. 2, October 3, 1914.

 

Monday, October 19, 1914

Seminary of Economics. “Combinations in the Book Trade and the Regulation of Retail Prices.” Mr. H. R. Tosdal [Ph.D. 1915]. Upper Dane, 4.30 p.m.

Source: Harvard University Calendar, Vol. X, No. 4, October 17, 1914.

 

Monday, November 2, 1914

Seminary of Economics. “The Contest in Congress between Employers and Trade Unionists.” Mr. P. G. Wright. Upper Dane, 4.30 p.m.

Source: Harvard University Gazette, Vol. X, No. 6, October 31, 1914.

 

Monday, November 23, 1914

Seminary of Economics. “Cotton Manufacturing in Japan.” Mr. R. J. Ray. Upper Dane, 4.30 p.m.

Source: Harvard University Gazette, Vol. X, No. 9, November 21, 1914.

 

Monday, December 7, 1914

Seminary of Economics. “The Tin Plate Industry in Wales and in the United States.” Mr. D. E. Dunbar. Upper Dane, 4.30 p.m.

Source: Harvard University Gazette, Vol. X, No. 11, December 5, 1914.

 

Monday, January 11, 1915

Seminary of Economics. “The Meeting of the American Economic Association.” Professor Carver and Dr. J. S. Davis [Ph.D. 1913]. Upper Dane, 4.30 p.m.

Source: Harvard University Gazette, Vol. X, No. 16, January 9, 1915.

 

Monday, January 25, 1915

Seminary of Economics. “The Development and Organization of the Grain Trade in Canada.” Mr. W. C. Clark. Upper Dane, 4.30 p.m.

Source: Harvard University Gazette, Vol. X, No. 18, January 23, 1915.

 

Monday, February 15, 1915 

Seminary of Economics. “Modern Methods of Real Estate Assessment.” Mr. Alfred D. Bernard, of Baltimore, Md. Upper Dane, 4.30 p.m.

Source: Harvard University Gazette, Vol. X, No. 21, February 13, 1915.

 

Monday, March 1, 1915

Seminary of Economics. “State Board of Conciliation and Arbitration in Massachusetts.” Mr. L. A. Rufener [Ph.D. 1915]. Upper Dane, 4.30 p.m.

Source: Harvard University Gazette, Vol. X, No. 23, February 27, 1915.

 

Monday, March 15, 1915

Seminary of Economics. “The Struggle in the Colorado Coal Mines.” Mr. J. H. Libby. Upper Dane, 4.30 p.m.

Source: Harvard University Gazette, Vol. X, No. 25, March 13, 1915.

 

Monday, March 29, 1915

Seminary of Economics. “The Theory of the Equilibrium of Supply and Demand.” Messrs. R. L. Wolf and J. Viner [Ph.D. 1922]. Upper Dane, 4.30 p.m.

Source: Harvard University Gazette, Vol. X, No. 27, March 27, 1915.

 

Monday, April 12, 1915

Seminary of Economics. “Some Aspects of the Federal Valuation of Railways.” Mr. H. B. Vanderblue [Ph.D. 1915]. Upper Dane, 4.30 p.m.

Source: Harvard University Gazette, Vol. X, No. 29, April 10, 1915.

 

Monday, May 3, 1915

Seminary of Economics. “The Boston and Maine Reorganization.” Professor Ripley. Upper Dane, 4.30 p.m.

Source: Harvard University Gazette, Vol. X, No. 32, May 1, 1915.

 

Monday, May 17, 1915

Seminary of Economics. “The German Steel Kartell.” Mr. H. R. Tosdal [Ph.D. 1915]. Upper Dane, 4.30 p.m.

Source: Harvard University Gazette, Vol. X, No. 34, May 15, 1915.

 

Image Source.  Harvard Square September 23, 1915. “These businesses have weathered decades of change in Harvard Square,” posted at Boston.com.

 

Categories
Economist Market Economists Harvard

Harvard. Memo to Provost supporting Galbraith appointment. Black, 1947

 

As surprising as it might sound, the Harvard economics department couldn’t always get whom they wanted (Theodore Schultz). As a consequence we are able to observe an aggressive strategy employed by a member of one side in the departmental hiring dispute.  Professor John D. Black attempted to play the rebound in re-pleading his case for John Kenneth Galbraith’s appointment to a newly established professorship. Indeed by writing directly to the Provost, Black could have been charged with at least an additional count of “working the ref”. The episode is well summarized in Richard Parker’s biography of Galbraith (John Kenneth Galbraith: his life, his politics, his economics, pp. 226-227). Still, there is nothing quite like the pleasure of watching sharp elbows at work in the service of intradepartmental politics as revealed in the complete letter posted below.  Black was not afraid to push nativist buttons in referring to anti-Galbrathians among his colleagues: “European clique” (cf. Haberler in 1948 on Galbraith vs Samuelson), “the monetary-fiscal policy axis” and “gaudy Keynesian trappings”.

A cynical nose can detect more than a whiff of a self-serving plea to strengthen the prospects of Black’s own field and style of research. 

Archival note: Parker refers to a copy of the letter in Black’s papers with the Wisconsin Historical Society, this post is based on a copy of the letter I found in Galbraith’s papers at the JFK Presidential Library.

Economics in the Rear-view Mirror provides the outlines and exams for Black’s courses on the marketing of agricultural commodities from 1947-48).

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December 22, 1947

Provost Paul Buck
University Hall
Cambridge, Massachusetts

Dear Provost Buck:

As you are no doubt aware, it was I who last year nominated Galbraith for the joint professorship to the School of Public Administration and in the Department of Economics. It was my judgment at that time that in view of his experience in public affairs and acknowledged great ability he surely should be considered for this position. The voting last year confirmed my judgment surprisingly. Excluding Schultz, to whom the appointment was offered, and Tinbergen from the Netherlands, he ran neck and neck with Yntema for top place in all of the balloting, with Samuelson next, and Smithies in seventh place. Tinbergen owed his strength to the European clique in the Department of Economics (by no means all European born), who have a European idea of the function of a university, und would have been a misfit in this appointment.

The voting of course reflected in large measure the conceptions of the voting members as to the needs of the appointment. A majority of my colleagues in the Department of Economics thought of it in terms simply of getting another high-grade technical economist, with little thought for the needs of the School of Public Administration. To meet this situation, I prepared and read at one of last year’s joint meetings on the appointment, the following statement, which I now I now submit anew, as still describing the conditions of the appointment:

The decision as to an appointment in economics at this time raises the whole question of the future of the Graduate School of Public Administration and its meaning for the Departments of Economics and Government.

The first point to make under this head is that the two departments named, without the Graduate School of Public Administration, are destined to become conventional departments in these fields, not distinguishable from similar departments in other universities, except for probably having better faculties than most of them. Even the latter distinction could easily fade in the next decade or two. With the Graduate School of Public Administration working with them, they both have possibilities of becoming super-graduate departments, by building on top of the usual graduate offerings in these fields a type of advanced graduate instruction that deals with problems of the sort that arise in the higher levels of policy-making in government. The seminars now given are well worth while from this point of view, but they fell much sort of realizing their possibilities. The two departments therefore very much need the Graduate School of Public Administration. It offers them a real opportunity to achieve greatness and become important influences in our national life. On the other hand, the School can get nowhere without the regular graduate work of the two departments as a foundation. The School and the two departments should therefore work closely together, each helping the others at each step in their advancement.

This means looking at a problem, such as that of the new appointment, as a common problem, and asking the question what kind of an appointment now will promote best the progress of the departments and the School?

Before answering this question, we need to go back and consider the basis on which the School was conceived. Those who formulated the program for the School finally settled down on training in policy-making as the great opportunity for a school of public administration at a university like Harvard. They exhibited a kind of prescience and inner wisdom in so doing that would almost seem like a miracle except for the fact that it did grow almost inevitably out of the situation.

In the two or three years following the founding of the School, much actual headway was made in realizing the objective of training for policy-making. The program of the School and it method made a strong impression in government circles and in the world of education. Since then, the School has lost considerable of the advantage of such a splendid start. If it does not take hold with vigor again and press forward along the lines laid out, it will lose it entirely in five or ten more years and become nothing more than a minor adjunct of the two conventional departments of the University. This the departments themselves cannot afford to let happen. Neither can Harvard University.

Looking at the present problem in this light, there can be no doubt that the great weakness in our present situation is in persons qualified to train advanced graduate students in policy-making, who have the aptitude for it as well as the background. The interests of the departments are in such an appointment at this time. The training in policy-making, comparatively speaking, is not suffering now, and will not suffer for several years, because of deficiencies in the preliminary graduate training needed as a foundation for it.

Also needing to be considered are important and somewhat similar relations to other departments of Harvard University, particularly to the Graduate School of Business Administration, to the Law School, and to the new Department of Social Relations. The School can add something of high importance to each of these if its seminars in the policy-making function are adequately developed; and in turn its contribution will be much enriched by what workers in these fields have to offer.

An appointment at this time of one new professor qualified as indicated will not of course take us far alone the way we need to go. But it will make a good start. We shall need mainly two things in addition: A. Additional research funds for the different seminars — to be used in employing research associates, financing field work, statistical laboratory work, etc., B. Some appointments wholly on the faculty of the School. Funds for both of these, especially the first, can be obtained if sought in earnest.

In conclusion, it should be stated that the School has made a start exactly along the right lines. It does not need in the least to back up and take a fresh start, but instead only to pick up what it has and go forward with it.

You, Provost Buck, do not need to be told that since I made this statement, the School has done exactly what I was hoping for. Almost certainly now at least three of the major seminars of the School will have research projects combined with them, each with small staffs of research associates. Steps are being taken to bring the School into effective working relations with the Law school and the Department of Social Relations. The need for an appointment that will strengthen its instruction in the policy-making function has in consequence become even more urgent then it was a year ago.

When it came time to offer nominations again this year, I felt that in view of the strong vote for Galbraith last year, surely he should be considered again. The third men in the top three this year, Smithies, has been substituted for Samuelson by those who supported Samuelson last year, apparently for two reasons: one, they now admit Samuelson’s shortcomings in the policy role, and consider Smithies a better candidate from this point of view; two, they expect to have Samuelson appointed to the full professorship now vacant in the Department of Economics. There seems to be more general acceptance than year ago of my conception of the needs of the appointment.

It has been necessary for me to make this last statement because it is the basis for the most important factor in the whole situation as it now develops, namely, that to appoint both Smithies and Samuelson at this time would further unbalance the work in economics at Harvard in the direction of the monetary-fiscal policy axis, since both of these men work mainly along these lines. The simple fact of the matter is that the men working in money and banking, fiscal policy and international trade, plus a few (in theory mostly) who vote with them on appointments, already constitute a voting majority in the Department of Economics. (You will remember that they did their utmost to prevent Dunlop’s appointment two years ago.) To add one more to this axis at this time would be highly unfortunate. It is, of course, not their voting which is most important — it is the narrowing effect which they have on the teaching and research in economics at Harvard. Those two appointments would contribute more than usual to such narrowing, since they are Keynesians in addition.

Of course none of these in this axis considers that he is narrow. In their discussions, to be sure, they draw in all phases of the economy. But they organize it all in terms of a single framework of reference. They pour it all, as it were, through one narrow funnel, and do some sieving in the process. As to how much they may mislead themselves in so doing, — and unfortunately some of the policy-makers of the nation; we have had abundant evidence in the past two years.

We can be reasonably certain that within ten or fifteen years, the Keynesian system of economic thinking will have been pretty well taken in stride. It would be unfortunate if at that time Harvard found itself with a faculty in economics too largely clothed in outworn habiliments. The economies of that day will have a different cast then the pre-Keynesian; but it will have lost much of its gaudy Keynesian trappings.

One of the first stories told me about Harvard when I arrived in 1927 was of President Eliot’s having been asked why Harvard University’s Department of Psychology had never developed a “school” of thought in that field, as had the Departments of Cornell and Columbia, and of his having answered that if he had discovered that his Department of Psychology was becoming dominated by one school of thought he would have hastened to appoint the strongest man he could find of an opposing school.

Of course this last point is no argument for the appointment of Galbraith. It is merely an argument against appointing Smithies if Samuelson is going to be appointed to the Department of Economics — and the pressure for Samuelson’s appointment is very strong in the Department of Economics.

I do not propose to present any strong affirmative arguments in support of Galbraith’s appointment. I nominated him because I believed that he should at least be considered. It has been the votes of my colleagues that has put him in the running, and I prefer that they tell you their reasons. I would not want him appointed if in their judgment, and that of the ad hoc committee, he is not the strongest man for this joint appointment.

I say this even though I would hope that if Galbraith were appointed he could spare a small fraction of his time to helping me give the two year courses which I now give in Commodity Distribution and Prices (ordinarily called Marketing.) Even though I am now giving these two courses, with the help of one-fifth of the time of an annual instructor, in addition to three full year courses in the Economies of Agricultura (with help of part of the time of one visiting lecturer) besides supervising a score of doctor’s theses, I shall manage somehow if I can get some other regular help with the three courses in the Economics of Agriculture.1

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  1. The undergraduate course in marketing had 90 students in the fall term, and the graduate course had 12 plus 8 auditors. This course was offered to Harvard undergraduate in 1946-47 for the first time, except for sone special instruction in food marketing given to armed service prospects during the war. The graduate course has been given since 1933.

    ____________

It may also be of interest that 12 of the 120 Ph.D’s reported as conferred in Economics in the United States in 1946-47 (12 months) were to candidates writing theses under my direction. (See September 1947 American Economic Review.)

There have, however, been some statements made about Galbraith in faculty discussions that must be commented upon in the interest of truth and sound decision. It has been said of him that he is “not a highly competent technical economist.” All this means is that he has published no articles in which he has applied methods of statistical and mathematical analysis, to the development of refinements of economic and monetary theory. I have no doubt of Galbraith’s ability to do this when this is the important thing for him to do. The simple truth is that a man of his breadth of comprehension is likely to find himself mainly absorbed in dealing with broad fundamental economic relationships; and this is especially true in times as disturbed as those in which he has been doing his writing. When asked, in the summer of 1947, to read a paper on the current economic situation, I entitled this paper “Fundamental Elements in the Current Agricultural Situation,” and I wrote as follows:

“The day and the hour seem to call for analysis in terms of broad fundamentals. This is no occasion for the refinements of theory and their application; but rather for over-simplification and over-emphasis on a few vital elements. Something of accuracy is lost in consequence; but this is not relatively important in the emergency that confronts us. There are wild horses loose in the world and the first task is to bring them to leash. Later we can break them to the plow and the cart.”

This statement is truer today than it was in 1942. If any economist of today is turning out articles or books presenting analysis of refinements, he is doing it because he lacks real power of analysis of the larger issues of the day, or as a by-product of such analysis, or as relaxation from the steady grind of his regular job. No doubt some of Smithies’ articles fit into these latter descriptions. Galbraith’s writings of the past ten years have covered the larger aspects of a very broad range of subjects.

Another criticism has been that he is not a good speaker. It is true that he often speaks haltingly when extemporizing. He needs time to find the exact word he wants. But he writes excellent papers, and reads them very effectively. (John Williams reported at a recent faculty meeting that his paper and Ed Mason’s were the outstanding papers at a full meeting in Philadelphia. His paper at the Atlantic City meeting in December 1946 was an outstanding performance.) In fact, he has become a very effective writer. To have a man in the Graduate School of Public Administration who can write as effectively as Galbraith on public questions of the day will be a highly valuable asset.

It needs to be added that he is effective in the classroom in spite of halting for a word now and then. The secret of this is that he has an uncanny sense for the vital points in a classroom discussion the same in analyzing public issues, and for putting these in their proper perspective. He is also a very stimulating influence among students in private discussion.

Rating higher in my scale of values than in those of many other academicians is capacity. Some of my colleagues do twice as much teaching, research and writing as some others, and do it fully as well or better. Galbraith has demonstrated a high order of capacity.

The other adverse report concerning Galbraith is not so easy to analyze. It is that he does not handle public relations well, nor even his relations with colleagues and subordinates. Surely a man of Galbraith’s type needed a man of different sort to work alongside him and handle the difficult public relations of OPA. And surely Leon Henderson was not that man. He was less apt at it even than Galbraith. The public relations man for OPA had to say “No” very often; and Galbraith does not have the ease of manner for such an assignment. Given time enough to plan for it in advance, he is able to differ with his colleagues and associates in a pleasant and gracious manner; but not in haste and under pressure, and especially when some body is trying to “put something over”.

No doubt a factor in his relations with others has been his urge to get on with the job and not waste too much time talking about it. I must confess a kinship with him in this respect. He no more than I should be assigned task a with many administrative decisions.

On this point, I am ready to predict without any hesitancy that Galbraith’s relations with his colleagues in the School and in the Department of Economics, should he receive this appointment, would be more congenial by a wide margin then those now generally prevailing in these departments; also that in the role of a Harvard professor, his relations with the public and with government officials would be unusually cooperative and friendly.

Perhaps a word is in order as to why I did not vote for Yntema. Most of all, I do not want to take a chance on either of two things (1) that he will prefer to continue with his present job, thus postponing our filling this appointment for another year: (2) that he will accept the appointment, but will want to continue a tie-us with CED that will remain his main interest. We cannot afford any more such tie-ups. Second, he seems to be so well fitted to his present assignment that I do not believe he would fit ours.

Very truly yours,

John D. Black

Source: John F. Kennedy Presidential Library. John Kenneth Galbraith Papers. Box 519. Series 5. Harvard University File, 1949-1990. Folder: “Correspondence Re: Appointment of JKG as Professor of Economics. 12/22/47—3/22/50”.

Image Source:  Professor John D. Black in Harvard Class Album 1945.

Categories
Exam Questions Harvard

Harvard. General Examination in Economic Theory, Spring 1989

Trawling the Zvi Griliches papers at the Harvard archives recently, I was able to retrieve the following copy of the economic theory general examination (transcribed below) for Harvard Ph.D. students from 1989. The Berlin Wall was still standing and the exam took place close to the time of the Tiananmen Square demonstrations. We see that it was business as usual at Harvard Square with respect to economic theory. Students were discouraged from answering more than one question (i.e., 25% of the exam) dealing with the history of economic theories. 

______________________

Some later general examinations

Spring 1991

Microeconomics; Macroeconomics

Spring 1992

Micro- and Macroeconomics

Fall 1992

Micro- and Macroeconomics

______________________

HARVARD UNIVERSITY
DEPARTMENT OF ECONOMICS

GENERAL EXAMINATION IN ECONOMIC THEORY
SPRING 1989

You have four hours. Spend approximately one hour on each question as all questions will receive equal weight in grading.

Start each question in a fresh blue book. Write your number and the number of the question answered on the cover of each blue book. DO NOT INDICATE YOUR NAME.

 

PART A
ANSWER BOTH QUESTIONS.

Question 1

Consider an investor with von Neumann-Morgenstern utility

{u_{i}=-e^{-a_{i}w_{i}}}

where ai > 0 is a constant and wi is his wealth. Suppose this investor can choose to invest his initial wealth {\bar{w}_{i} } in a set of n assets. One (n = 1) is a safe asset with return unity, and the others are risky. Let their returns be denoted (r2,..,rn) which are jointly distributed according to F(r2,…., rn). Take the prices of these assets, in units of the safe asset, to be (p2,..,pn).

  1. Show that the optimal portfolio puts a share of initial wealth in each of the risky assets that is proportional to initial wealth.
    Suppose that the risky assets are in fixed supply—for example, they are issued inelastically by firms in exchange for the investors’ initial wealth. The safe asset is elastically supplied.
  2. Write the conditions on asset prices that determine an equilibrium on the asset markets.
  3. Now suppose that some additional investors are added to the economy, each with positive initial wealth and the same form of utility function. Show that the asset prices change in such a way that the mean return to the portfolio of all risky assets decreases.
  4. Take the limiting case in which the number of investors and their total wealth becomes very large in comparison with the fixed asset supplies. Comment on your results.

 

Question 2

Empirical evidence indicates that money and output are positively associated over business cycles. What are the strong points and shortcomings of each of the following three approaches to explaining this observation.

  1. The Keynesian model.
  2. The new classical model with incomplete information.
  3. Models with “endogenous money”.

 

Part B
ANSWER TWO OF THE SIX QUESTIONS.
YOU SHOULD NOT ANSWER BOTH QUESTION 7 & 8.

Question 3

A government is concerned with providing disability insurance for its citizens. Each individual has a probability of  {\pi } of being disabled. If disabled, the individual has utility function v(c) where c is the individual’s consumption of society’s sole consumption good. If able, the individual has utility level u(c) – h where c is consumption (of society’s sole consumption good) and h is the number of hours worked by the individual. All jobs require H hours of work and one hour of work produces 1 unit of the consumption good.

  1. Suppose the government can observe whether an individual is disabled or not. Suppose, also, that there are enough individuals in society so that exactly a fraction {\pi } end up disabled. Set up and solve the government’s problem of finding the optimal disability insurance program. (HINT: Think of the government as directly picking a consumption level for the disabled cd, and a consumption level for the able ca, to maximize a representative individual’s expected utility subject to the overall societal resource constraint. Assume that able individuals always work.] What do consumption levels in the optimal program look like? Draw a picture in (ca, cd) space illustrating the solution.
  2. Suppose now that the government cannot observe whether an individual is disabled or not. Thus, an individual can pretend to be disabled by choosing not to work.

(i) Set up the government’s problem under the assumption that it is desirable to have all able individuals choose to work.

(ii) Characterize the solution under the assumption that for any (ca,cd) such that
u(ca) – H ≥ v(cd) we have u'(ca) < v'(cd).
Draw a picture in (ca,cd) space illustrating the solution.

  1. Suppose that disability is unobservable but that now there are two types of individuals. They differ only in their probability of being disabled. Suppose the fraction of high probability types is {\lambda_{H}}, and that the government maximizes a utilitarian social welfare function. What do consumption levels with the optimal disability insurance program look like?
    Draw a picture in (ca, cd) space illustrating the solution.

 

Question 4

Suppose that the representative household/producer attempts to maximize

{U=\int^{\infty }_{0} u\left( c\right)  e^{-\rho t}dt }

where c is consumption per household,  {\rho >0},  {u\left( c\right)  =\left( c^{1-\sigma }-1\right)  /\left( 1-\sigma \right)  }, and  {\sigma >0}. There is a constant number of these immortal households.

Production is  {y=c+\dot{k} =Ak}, where y is output per household, k is the capital stock per household, and  {A>\rho }. The capital stock, which does not depreciate, begins at time zero at the quantity k(0).

  1. What is the household’s first-order optimization condition for consumption over time? What is the transversality condition?
  2. What are the steady-state growth and saving rates in this economy? How do growth and saving behave in the transition to the steady state?
  3. What condition on A and {\rho} ensures that the transversality condition is satisfied? Is utility per household bounded in this case?

 

Question 5

MATCHING.

Suppose there are two hospitals, X, Y and two doctors A, B out of medical school. Hospitals and doctors have to be matched up for residency purposes. A matching is a pairing of hospitals and doctors,
e.g. {(X, A), (Y, B)}.

Hospitals or doctors have preferences for the doctors, or hospitals, they are matched with. For example, Hospital X could have preferences A >X B, similarly X >A Y, Y >B X, etc. For simplicity, suppose there is never strict indifference.

  1. Define a concept of Pareto Optimality for matchings.
  2. Define a matching as stable if there is no pair of hospital-resident that can block it. A pair can block if both would [be] better off leaving their current partners and pairing off. For example, for the preference: A >X B, A >Y B, Y >A X, X >B Y the matching {(X, A), (Y, B)} is not stable because (Y,A) can block (why?) Is it Pareto optimal? Exhibit a stable matching for the above preferences.
  3. Suppose that interns are allocated to hospitals as follows: Hospital X chooses an intern and Hospital Y gets the remaining one (call this Allocation System I). Show that this system guarantees that the obtained matching is Pareto optimal but not necessarily stable. (Give an example to make the last point.)
  4. Consider now a different allocation system (call it Allocation System II): Each hospital (the sequencing does not matter) makes an offer to some intern. If each intern receives an offer, this determines the matching. If an intern receives two offers, s/he chooses which one to accept, the rejected hospital then pairs off with the remaining intern. Which matching would this system yield for the preferences:
    A >X B, A >Y B, Y >A X, X >B Y? Show that for any pattern of preference this system yields a stable matching.
  5. Suppose you now consider a System III which is identical to System II except that the roles of hospitals and interns are reversed: The offers are now made by interns and accepted or rejected by the hospitals. Show by example that the stable matchings generated by System II and III can be different. Discuss this difference in terms of which side of the “market” is relatively favored.

Question 6

Assume that a consumer maximizes

{E_{0}\sum^{\infty }_{t=0} \beta^{t} \frac{exp\left( -\rho c_{t}\right)  }{-\rho }}

subject to

{a_{t+1}=R\left( a_{t}+y_{t}-c_{t}\right)  ,}

{y_{t+1}=y_{t}+\epsilon_{t+1} ,\  \epsilon_{t+1} \sim N\left( 0,\sigma^{2} \right)  }

and a transversality condition to rule out Ponzi schemes. Impose  {\beta \in \left( 0,1\right)  } and  {\rho >0}, and define at = nonhuman wealth at t, and yt = endowment at t. R is the (gross) safe interest rate, and E0 denotes expectation conditional on information available at time 0. The  {\epsilon^{\prime } s} are assumed to be identically and independently distributed.

  1. Write the first-order condition associated with an optimum consumption path.
  2. Show that, if {\beta R=1}, the optimum consumption path satisfies

{c_{t+1}=c_{t}+\frac{\rho \sigma^{2} }{2} +\epsilon_{t} }

Explain the presence of the second term on the righthand-side of this expression. [Hint: It is reminded that if  {x\sim N\left( m,2s^{2}\right)}, then  {E\  exp\left( x\right)  =exp\left( m+s^{2}\right)}.]

  1. Suppose that our consumer is representative of all other consumers in the economy. Compute the equilibrium safe interest rate.
  2. What are the factors conducive to a high equilibrium safe interest rate?

 

Question 7

Economists of different schools of thought have emphasized the symmetry of resource allocation and income distribution with respect to the organization of production. As Samuelson put it in “Wages and Interest: A Modern Dissection of Marxian Economic Models,” (AER, 1957), “Remember that in a perfectly competitive market it really doesn’t matter who hires whom; so have labor hire ‘capital.’” Yet one of the more striking facts of contemporary economic life from Chicago to Moscow is that labor is generally the hired factor rather than the hiring factor. Give accounts of this phenomenon which roughly fit within neoclassical, Marxian, and Keynesian frameworks, respectively. What are the strengths and weaknesses of each?

Question 8

“Economic science is, and must be, one of slow and continuous growth. Some of the best work of the present generation has indeed appeared at first sight to be antagonistic to that of earlier writers; but when it has had time to settle down into its proper place, and its rough edges have been worn away, it has been found to involve no real breach of continuity in the science.” (A. Marshall).

Critically evaluate this view of the history of economics.

Source: Harvard University Archives. Papers of Zvi Griliches, Box 125, Folder “General Examination in Economic Theory and its History, undated.”

Categories
Economics Programs Harvard

Harvard. Meeting of the Visiting Committee with the Economics Department. January 1944

 

Maybe attending to the routine business of the Harvard economics department was seen as a welcome respite amidst the Sturm und Drang of the Second World War. Maybe the consensus was simply shared that the transistory shock of the war would soon be over and it was time to worry again about the core missions of Harvard and its economics department. In any event, the following report outlines a “Research Program for the Department of Economics” presented to the visiting committee by the chair of the department’s Committee on Research Program, Professor John D. Black. 

____________________________

Visiting Committee Reports available at Economics in the Rear-view Mirror

Visiting Committee Report 1915

Visiting Committee Report 1974

____________________________

Meeting of the Visiting Committee of the Department of Economics with the Department, on Monday, January 10, 1944.

The Visiting Committee of the Department of Economics met with the Department at seven o’clock on Monday, January 10, 1944, at the Harvard Club in Boston. There were present for the Visiting Committee: Roger N. Baldwin, Albert F. Bigelow, Paul M. Herzog, George Rublee (chairman), Charles E. Spencer, and Orrin G. Wood. For the Department: John D. Black, H. H. Burbank, W. L. Crum, John T. Dunlop, Edwin Frickey, Seymour E. Harris, Arthur E. Monroe, Wassily Leontief, Abbott P. Usher, John H. Williams, and Edwin B. Wilson. Mr. Rublee presided.

 

Mr. Rublee called on Professor Burbank, the chairman of the Department of Economics, to make an opening statement.

Professor Burbank said that in previous years we had at these dinners talked about our teaching difficulties, especially those connected with the junior staff. Last year we discussed Professor Slichter’s experiment with the labor-union representatives. This year the Department had suggested to Mr. Rublee that we consider our most pressing problem of the present, as well as the immediate and long-run future. Fundamentally, this problem is concerned with the Department’s research. We must have a vigorous and effective program of research if we are to have a dominant Department of Economic in the University or, indeed, if the University itself is to maintain its high standing. The Department of Economics has recently appointed a Committee on Research Program. Professor Black is the chairman of this committee.

Professor Black then presented the following report:

RESEARCH PROGRAM FOR THE DEPARTMENT OF ECONOMICS

A department of economics in a large university has three functions to perform:

  1. To teach and train students,
  2. To contribute to an understanding of the current problems of private enterprise and public affairs,
  3. To help develop the science of economics.

In a small college a good job of teaching is about all that can be expected of a department of economics. In a great university the second and third functions are as important as the first.

Fortunately those three functions not only need not interfere with each other, but in a large university can be performed in such a way that each strengthens the other. This does not mean that all can be performed in the same time, but rather that each is better done if the other two are also being strongly carried. As a matter of fact, however, much time and energy is saved if all three are combined. Thus what is learned from the study of current problems can be used very effectively in the classroom and at the same time furnishes needed and valuable inductive material for the development of economic science. One’s teaching, in turn, especially one’s graduate instruction, is a constant source of ideas and suggestions to be developed in research. Only, therefore, if the staff of a department of economics is large enough and well enough financed so that it can work along all three of these lines, is it able to yield a large return upon the investment in it. Only if thus set up and thus functioning is it able to realize the possible economies of combination of these functions.

The Department of Economics of Harvard University has been performing on all of these fronts ever since it was organized. But in the period while the members of this committee have been associated with it, it has by no means measured up to its opportunities on the last two of them, and what is more important, unless some action is taken in the near future, it will miss out still more on its opportunities after the war. It will not only do less well the job it has been trying to do, for reasons to be indicated presently, but also will not reach out and encompass the larger needs of the years ahead. Needless to state, society and the nation are going to be faced with major tasks of adjustment in the years just ahead and over the next decade or two and likewise breath-taking possibilities for social advancement. So important is the role of economies in these developments that if the Department of Economies of Harvard University does not contribute its part to them, this alone will almost be enough to shrink Harvard University in toto into a second- rate institution. This, therefore, is a moment for stock-taking and laying out plans.

It is not part of the assignment of this committee to consider the teaching function of the Department. But some reference must be made to it for the reasons just given. the present course offerings and methods of instruction are not well fitted to the present and the impending future. The function of teaching in a field like ours is primarily to train students to apply economics, and the methods of economic analysis, to the situations which confront them after they leave college. For Harvard undergraduates, most of these situations are situations in private enterprise, although having important public relations. A limited proportion are assignments in the public service itself. The program of teaching needs to be organized in anticipation of the kinds of jobs, mostly private, that the graduates of Harvard University get to do. The graduate teaching program needs to envisage e wide range of working assignments, a large fraction of them in the public service. Training teachers of economics is only one of the functions of graduate teaching. Because the teaching is not organized as needed, there are some large gaps in the present program, and these gaps, it will appear presently, coincide with gaps in the research activities of the department.

The other two functions, contributing directly to an understanding of current situations, and developing economic science, are orginarily considered as research. There is considerably more to the first of these than just research, but since good research is basic to it, we will here consider them both as research and treat them under one head from this point on.

The deficiencies in the research activities of the Department of Economics, considered especially from the standpoint of the postwar can be designated under the following heads:

  1. Not enough research is being done
  2. There are gaps in it
  3. Some of it is not of enough significance.

The reasons for these deficiencies are as follows:

  1. Lack of resources to carry on the needed volume of research.
  2. This includes resources in research personnel as well as in the expenses of clerical assistants, field study, publication, and the like.
  3. Inadequate staff, or none at all, in some important fields.
  4. Very little in the way of leadership. Staff not organized in such a way as to promote research.

Let us now consider briefly these four reasons. When an economist does not have financial resources with which to do significant research, he may put in his spare energy on library work on the writings of his predecessors, the Congressional Record, and the like. For this he needs only someone to type his manuscript. If in addition, he has a little money to hire a computer, he may go to work on the census records and other official statistics. Those two descriptions about cover all the research now being done by the Harvard Department of Economics as such.

Lacking funds for anything more, two developments have followed. First, a goodly number of the staff members have taken on research or related assignments with other agencies. Merely to list these agencies tells the story. (We are purposely omitting the wartime agencies), the Treasury Department, the State Department, the Department of Agriculture, the Bureau of Labor Statistics, the Federal Reserve Board, the National Resources Planning Board, the Food and Nutrition Board, the Bureau of Economic Research, the League of Nations, the Twentieth Century Fund, the National Planning Association, the National Industrial Conference Board, etc. While most of those assignments are important, to have as many of them disorganizes the research and teaching of the Department. Also the Department as such does not get adequate recognition for work done under other auspices. Finally, there is great need for having research done that is largely independent of government agencies. This point cannot be too strongly emphasized.

The second development has been that several members of the Department have started projects that they have not been able to complete thus far. They have learned by sad experience that they cannot swing ambitious projects without the help of trained younger associates who can direct the detail of the analysis and help with the writing. As a result, a number of important projects are now left suspended.

If the Department is to have a vigorous research program of its own, there must be funds with which to employ a dozen or two of these younger research associates, as well as funds for computers, clerical help, drafting, travel and field study.

The Committee is also disposed to think that a clearer recognition should be given to research duties in the total program of the Department. It would suggest that consideration be given to a plan which would differentiate teaching loads according to research carried. Staff members who do very little research, because not inclined that way, or having small capacity for it, would handle more classes under such a plan.

The nature of the gaps in the present program may be judged from a following incomplete survey of fields of research and teaching and the needs of each.

  1. Money and credit. Staff ample, but research associates, clerical and other help much needed. High time that a research showing be made.
  2. Business cycles. Staff ample. Funds to continue the program that was under way before the war.
  3. International economic relationship. Staff probably not entirely adequate and great need of developing a well-rounded research program suited to the postwar world. This program should include work on Inter-American relationships, development of resources of Latin America, international food supply and distribution and related population problems. Research associates and other financial help.
  4. Public finance. Staff ample. Research associates and other help needed.
  5. Economic history. A teaching as well as research associate needed. One professor now working alone in the field.
  6. Labor and industrial relations. The principle problem is to develop a workable program for using the research funds now available.
  7. Agriculture. A teaching associate needed, and probably two research associates with necessary supplementary funds.
  8. Commodity distribution. Needs complete staffing. An undergraduate and a graduate course are now being given on a makeshift basis. No research under way.
  9. Production economics. Courses now bracketed. Needs complete staffing.
  10. Forestry economies. A slight beginning has been made on a program in this field in collaboration with the Harvard Forest. An opportunity for an important contribution here. Needs a man to develop teaching and research with such financial support as required.
  11. Concerning the several other present fields of teaching and research in the Department, no statement is being made at this time.

The present research funds available for the Department are:

  1. A share with three other departments in the remnants of grant that will expire in June 1946. (About $40,000 left, most of which must be reserved for publication expenses.)
  2. Remnants of three other small grants, totaling about $6000, for special projects.
  3. The Wertheim fund, yielding about $3000 a year, for research in industrial relations, to be shared with other divisions of the University.

The committee suggests as a method of approach to the situation outlined that the Department set up a committee to draft a research program for the Department, and another one to develop a procedure for securing the necessary support for the program.

*  *  *  *  *  *  *  *  *  *  *

Professor Black added that in the natural sciences the idea of large laboratories is well established. In Economics also we need extensive laboratories and personnel therefor. Further, we need funds for field workers and for traveling expenses.

Mr. Bigelow asked whether there were any project being worked on in the School of Public Administration which could be coordinated with the research of the Economics Department. Professor Black answered that the idea of combining has already been carried as far as possible. The School of Public Administration funds are sufficient only to take care of the assembling of materials and other routine connected with the seminars.

Mr. Baldwin asked what the Department did with its research funds in the past when such funds were available. Professor Black answered that we made small grants to individual professors to help them finish projects in which they were engaged. These grants covered such activities as preliminary research, computing, and typing, but in general not much was available for field work or for traveling. Some eight or ten books have been published as a result of these projects. The publication of these books, as well as the research behind them, depended largely on research grants. Our research funds are now almost exhausted; we have very little money available for the future.

Professor Usher pointed out that in these earlier grants the modes and procedures were laid down by the donors. The Department did not have a free hand in organizing and planning research.

Mr. Baldwin asked whether the Economics Department today has a claim for research funds superior to that of other departments. Professor Burbank urged that a very strong case can be made out for such a position.

Professor Wilson observed that in days gone by great emphasis was laid on “inter-disciplinary” research. A second-rate “interdisciplinary” project would be given preference over a first-rate piece of restricted research. Professor Wilson further remarked that the research programs of the natural sciences were well set up thirty or forty years ago. Our social sciences, on the other hand, were for a long time treated as mere teaching departments. The movement away from this stand received a great impetus from an article by the late Professor Charles J. Bullock, in the Harvard Graduates’ Magazine for June 1915. This article called attention to the need of more generous and systematic provision for economic research. Our research program for Economics needs to be extended to a scale comparable with that of the natural sciences—unless, indeed, the United States government is to handle all the economic research in this country!

There was some discussion regarding the relation of university research in Economics to governmental research. Professor Usher pointed out that university research can be the basis for developing techniques of analysis which government bureaus can later put into “mass production.” Mr. Bigelow suggested that the development of techniques is more difficult in the social sciences than in the natural sciences. Professor Leontief predicted that the Economies Department’s research will set the direction for larger-scale governmental or “foundation” research, and emphasized that independent research, especially in its earlier stages, can never be reproduced in the “rough and tumble” conditions of governmental work. Dean Williams supported this view: a situation has been developing for some time—not just in connection with the War emergency—in which men are pulled out of university work to become mere administrators, to “run” projects; furthermore, working under governmental supervision may mean a certain loss of independence of thought, for consciously or unconsciously a men may be affected by considerations of “official policy.” Dr. Dunlop declared that you simply cannot do fundamental research under governmental auspices, there are always too many pressing current problems.

Mr. Herzog urged that the Department’s next step is to present cogent arguments to support its contentions regarding research needs. In this connection, it will be quite important to show people what contributions the Department has made in the past with the research grants allotted to it—what, for example, has resulted for practical use of the Government. Professor Burbank responded that we might take as an example the history of the statistical work on the Balance of International Payments. At the end of the last war the government and business men were vitally interested in this subject. Dean Williams was a pioneer in the field. Dean Williams briefly outlined the record. He began with an examination of the balance of payments for Argentina. Then, under the auspices of the Harvard Economics Society he, together with Professor Bullock and Mr. Tucker, made and presented a historical study of the Balance of Payments of the United States from 1789 to 1920. He kept this study up to date for several years and then turned it over to the Department of Commerce, working with them for a transition period of one year. The Department of Commerce has subsequently carried on the study currently.

As a suggestion regarding further possibilities of this sort, Professor Burbank referred to the problems connected with the incidence of taxation; these are most certainly current issues of the utmost importance. The country needs evidence for the formulation of governmental policy. We have in the Department a young man of high ability who has made a start on the investigation of these problems. We have no funds to help him, not even money for clerical and mechanical assistance.

Professor Burbank indicated that the Department would work a report along the lines of Mr. Herzog’s suggestion.

Mr. Wood urged that the Department visualize its projects and lay them out fully, with an indication of minimum and maximum amounts of money needed. Very little will be gained by talking in generalizations; the program must be concrete. Incidentally, with the Federal tax situation as it is, the present is a propitious time to obtain money for research—with reference both to individuals and to corporations.

Mr. Rublee raised question as to the exact significance of the title “Research Associate.” Professor Black answered that we have something in mind beyond a mere statistical clerk. Between the man in charge of a project and those doing the mechanical work, we need trained young economists who can assume the burden of direct supervision and also can help in writing up the results. Other Research Associates are needed to do traveling and field work. Professor Leontief suggested that the appointment of Research Associates is important for still another reason. Many of the young men thus appointed will become leaders in the economic developments of the future. The experience gained on our projects will be extremely valuable to them.

*  *  *  *  *  *  *  *  *  *  *

Mr. Rublee asked Dr. Dunlop to say a few words about the progress of the trade-union experiment which was described by Professor Slichter in this meeting last year. Dr. Dunlop said that this year we have gone ahead with the program, although of necessity on a reduced scale because of man power shortage in the various unions. We have six union representatives who, on the whole, are superior to the group we had last year. We have continued the development of techniques of instruction and we have widened our range of contacts with the unions. The unions are supporting the program and we are establishing new connections with certain important unions. In spite of the fact that the teaching staff has been somewhat depleted and we have had to furnish instruction on the basis of special arrangements, we feel that the year has been decidedly profitable and worth while, both for the union representatives and for us.

Mr. Herzog urged that by all means the work should continue, even though it had to be on a reduced scale. It is much easier to keep on with a going concern than to start afresh. He confirmed Dr. Dunlop’s impressions as to the high quality of the union personnel. He also reported the sincere testimony of a leading member of the labor-union group that the work at Harvard was felt to be highly worth while—to be a vital and crucial experience.

*  *  *  *  *  *  *  *  *  *  *

The meeting closed with general expressions of appreciation for Mr. Rublee’s work as chairman of the visiting Committee during the past few years and of the deep indebtedness which the Department feels to him for this work.

 

Source: Harvard University Archives. Department of Economics, Correspondence and Papers 1930-1961 (UAV 349.11). Box 25. Folder: “Visiting Committee Correspondence, 1943-45.”

Image Source: Cropped image of  John D. Black (1938). Harvard Library, Digital Collections.

Categories
Economics Programs Harvard Teaching Undergraduate

Harvard. Economics Department Reports to the Dean, 1941-1946

This post adds the Chairman’s annual reports on the Harvard Economics Department for the World War II years to the series:

Department of Economics Reports to the Dean of Harvard, 1932-1941

More about Harvard during WWII: Coreydon Ireland, “Harvard Goes to War,” The Harvard Gazette (November 10, 2011).

_______________________

1941-42

October 15, 1942

Dear Dean Buck:

I submit herewith a report on the work of the Department of Economics covering the past year.

The only honor conferred upon a member of the Department during this period has been the election of Professor Leontief to the American Academy of Arts and Sciences.

Several books have been published by members of the Department, including Professor Harris’s two major works (appearing, I believe, not more than a month apart), The Economics of American Defense and Economics of Social Security; Professor Black’s Parity, Parity, Parity; Professor Hansen’s Fiscal Policy and Business Cycles; and Professor Haberler’s Consumer Credit and Economic Fluctuations. Professor Haberler’s Prosperity and Depression has also gone through a third edition. Professor Crum was co-author of Fiscal Planning for Total War. The list of articles, pamphlets, reviews, and other items seems unusually long. Professor Hansen has listed thirteen items, Professor Slichter eight, and Professor Black six. The Harvard Economic Studies has expanded from 70 to 72 volumes during the year.

The contribution of the Department to the war effort has been substantial. Professor Mason continues on leave of absence with the Office of Strategic Services, and Professor Harris has recently been granted full time leave to serve as Director of the Division of Export-Import Price Control in the Office of Price Administration. Among those in the Department who are more or less active as Consultants or in other part time war activities are Professors Black, Crum, Hansen, Leontief, and Slichter, and Dr. Butters. Numerous younger men have, of course, entered the war services or have declined possible reappointment at Harvard in order to accept administrative and research positions in Washington.

The problem of maintaining instructional standards has, of course, been aggravated by the war. Fortunately, exceptions to the two-thirds rule have been granted in many cases; otherwise it would have been literally impossible in the face of competing wartime opportunities to recruit a staff of younger men at all. Out of the present staff of fifteen teaching fellows eleven are on more than two-thirds time, and almost without exception these men would not have been available (that is, not even at two-thirds time) if exceptions to the rule had not been made. The average experience of the Economics A staff has improved owing to a policy of putting more experienced men into Economics A and breaking in new men either in tutorial work or in the Statistics and Accounting courses. 36% of concentrators in Economics are tutored by new men this year; 60% by men of one year or less experience. The very sizeable staff in Statistics and Accounting is made up almost entirely of new appointees.

In view of the desperate need for trained economists in the expanding activities of the United States Government, the Department has announced for the current year an Undergraduate Training Program in Economics for Government Service which has attracted a substantial enrolment. The program has been opened to non-honors as well as to honors candidates. It has been carefully designed to give advanced training of a type which will enable them to undertake with a minimum of delay and adaptation administrative and research positions in the government service. It includes, in addition to a substantial corps of standard courses in Economics, three new courses, namely, Economics 7a and 7b, Research in Market Organization, Commodity Distribution, and Prices; Economics 19a, Research in Money and Finance; and Economics 22b, Government Statistics. One striking indication of the merits of this program might appear in the fact that a program of training announced by the Department of Government seems to consist essentially in normal concentration Government plus an election from these new courses in Economics.

Sincerely yours,

E. H. Chamberlin

Dean Paul H. Buck

_______________________

1942-43

October 21, 1943

Dear Dean Buck:

I submit herewith the report on the work of the Department of Economics for the academic year.

The war effort has continued to deplete our staff. Since the opening of the academic year Professors Chamberlin and Haberler and Dr. Dunlop have been granted leave of absence to undertake work in war agencies in Washington. However, Professor Crum resumes his work with the Department after leave of absence from the University to conduct an investigation on Fiscal Planning for the National Bureau of Economic Research of which he is currently the Chairman. Also Associate Professor Seymour Harris has returned to the University after a year and a half of service with the Office of Price Administration where he served as Director of the Office of Import-Export Price Control. A very small fraction of the once large junior staff now remains. By the end of the coming term it is expected that not more than four Annual Instructors will be active in instruction.

The incidence of war activities on research and publication has been two-fold. In some instances long-time research projects have been put aside, but concurrently much effort has been applied to projects concerned with war and post-war problems. Having in mind the inevitable interruptions of the war period, it is gratifying to be able to report that the books, scientific articles, addresses and reports have been in about the same number as the average of the immediately preceding years.

Of the major publications during the year the following should be mentioned:

J. A. Schumpeter, Capitalism, Socialism, and Democracy

P. M. Sweezy, The Theory of Capitalist Development

Edwin Frickey, Economic Fluctuations in the United States: a Systematic Analysis of Long-Run Trends and Business Cycles, 1866-1914

S. E. Harris, Economics of America at War

S. E. Harris, Editor, Postwar Economic Problems

A. P. Usher, The Early History of Deposit Banking in Mediterranean Europe has just left the press.

J. T. Dunlop, Cost Behavior and Price Policy

It is also indicative of the demands of war activities that some forty or fifty articles directly related to the war and post-war economy have been published by members of the Department. In addition numerous reports have been issued to or under the auspices of various war agencies such as Professor Harris, “O.P.A. Manual of Price Control” and his “Reports on Anti-Inflationary Programs in South America,” and Professor Crum’s memorandum on Fiscal Planning for Reconstruction and Peace for the National Bureau of Economic Research. The Quarterly Journal of Economics has continued successfully through another year, bringing the total volumes of this publication to 57. The Review of Economic Statistics now in its 25th volume is continuing under the editorship of Professor Harris. The Harvard Economic Studies is now publishing its 75th volume.

The rapid reduction in the numbers of the teaching staff has been met in part by the increased activity of those remaining. With the very active cooperation of the members of the staff we have been able to offer a reasonably full and well balanced program of instruction. On the graduate level flexibility of instruction has been more necessary than in previous years because of the cosmopolitan group now in attendance –not less than a dozen different nationalities are represented. This flexibility is being achieved largely by increased individual supervision and instruction.

The sharp decline in the undergraduate body together with the presence of a small but able and experienced staff of teachers has made possible a degree of experimentation in the introductory course in Economics which should lead to significant changes in the conduct of this course in the post-war period. Also at the present time some attention is being given to a question which has been in the minds of a number of members of the staff for some year—the so-called quiz section. It has been a quite common practice, in the conduct of middle group courses to provide for two lectures and one section meeting each week. On occasion five lectures are followed by the section meeting. For many years the usefulness of the section meeting has been in question. It is to be admitted that it does relieve the instructor of a lecture, but whether or not it provides equivalent or better instruction is debatable. At the present time Professor Crum and Dr. Smith are conducting a controlled experiment in the section meetings connected with their offering Government Control of Industry and Public Utilities. In the course time they will report their findings to the Department.

At this point I should like to mention the interesting and valuable “experiment” which Professor Slichter has called The Trade Union Fellowship Project. I am enclosing Professor Slichter’s report on this project which, I believe, you will find of interest. We regard the experiment as not only highly successful from both the point of view of the University and the Unions, but the experience furnishes a good deal of evidence regarding educational processes which may prove to be highly significant.

Very sincerely yours,

H. H. Burbank

_______________________

1943-44

October 13, 1944

Dear Dean Buck:

I submit herewith a brief report on the work of the Department of Economies for the academic year.

In the main, this report is a continuation of the report sent to you a year ago. In spite of the multifarious wartime activities of the member of the staff, the Department has maintained a well balanced offering of courses on both the undergraduate and graduate level. Course elections have continued to be surprisingly large, but I believe that the decline we have been expecting will actually begin with the Winter Term. The large proportion of foreign students on the graduate level, together with our inability to give complete offerings each Term, has necessitated an unusual amount of individual instruction.

Professors Mason and Chamberlin and Drs. Sweezy and Dunlop were on leave for the entire year. Professor Haberler resumed his work with us for the Summer Term.

I can repeat from my report of last year that the incidence of war activities on research and publication has been twofold. Most of our long time research projects have been put aside, but currently many projects concerned with war and postwar problems have been initiated and some of them completed. Although publication has been diminished by war activities, it is still gratifying to be able to report that the books, scientific articles, addresses, and reports—although not in quite the same quantity as in the prewar years—have nevertheless appeared in substantial numbers. Progress on the publication of books has shown a more definite interruption, but four books have been published during the year and not less than six books are now either actually in the press or are nearing form for publication. The books published during the year were:

J. D. Black, Food Enough

A. H. Hansen, (with H. S. Perloff), State and Local Finance in the National Economy

S. H. Slichter, Present Savings and Postwar Markets

J. H. Williams, Postwar Monetary Plans and Other Essays

Both of our periodicals — the Quarterly Journal of Economics and the Review of Economic Statistics — have been able to continue publication without interruption and have been able to maintain their high standards. The difficulties encountered by scientific periodicals during these years are very real. One other volume has been added to the Harvard Economic Studies.

In my last report I mentioned the experimentation, particularly in the Introductory course, which had been initiated. I am very happy to be able to report that this experimentation has continued through another year with very gratifying results. A very interesting problem is involved in the attempt to present adequately the introductory material in Economies. Most of us who have been intimately concerned with the problem believe that a single course can serve both for those who will concentrate in Economics and for those whose main, interest lie elsewhere. The content of such a course, and the effective presentation of the material, is now being studied.

I might add here—because fundamentally it is experimentation in methods and relationships—that the Trade Union Fellowship Project has been conducted successfully for another year. At various times I have sort you Professor Slichter’s reports on these projects. We believe that a very interesting and productive educational experiment is being carried on with the Trade Union men.

Also in the sane connection I should like to record that during the last year we were presented with a variety of problems by the numerous South American students who came to us on the graduate level.We gave these students particular attention. By the end of the year we had learned that it would be highly profitable to develop for such students some specialized instruction which would overcome the difficulties under which all of them labored in their first term or two of residence. Their educational background, following European patterns, is such that it is necessary for us to present to them in concentrated form certain types of qualitative and quantitative analysis with which they are unfamiliar and which is not now offered on the graduate level.

The members of the Department have continued to discuss and to arrive at decisions regarding course instruction in the postwar years. In sone respects, we will strengthen the instruction offered mainly for the specialist in Economics, but we are more concerned with broader offerings which will prove to be desirable, and we hope necessary, for the college at large. Our permanent staff is large and versatile. We hope to be able to utilize to the full the resources we possess. In connection with the enrichment of our teaching, we expect to utilize more effectively in our instruction the material forthcoming from a number of proposed seminars.

It seems unnecessary to mention in detail the wartime activities of our staff members. Practically every member of the staff is actively engaged in some type of war activity. Without exception, each officer is utilizing his special aptitudes and training in connection with the various Federal agencies concerned with economic problems.

Very sincerely,

H. H. Burbank

Dean Paul H. Buck
University Hall 5
Cambridge, Massachusetts

_______________________

1944-45

October 24, 1945

Dear Dean Buck:

I submit herewith a brief report on the Department of Economics for the last year.

As in the preceding war years, the Department has been able to present a very respectable offering of courses, both on the graduate and undergraduate level. The number of graduate students continued to be unexpectedly large, necessitating a rather more elaborate course offering for them than we had planned. To a somewhat larger extent than in the two preceding years the students enrolled represent such a diverse background of training and experience that sone new types of instruction were involved. Some seventeen nationalities were represented. We are inclined to believe that this is not altogether a temporary and war situation. Even after the European universities are reestablished, we expect to draw many students with foreign background and training. If this expectation is fulfilled, our wartime experience with foreign students will have been of considerable value.

Even before the war the Department was concerned with the reorganization of its instruction. Our discussions continued throughout the year materializing in a curriculum in theoretical and applied Economics which tends to utilize to the full the unusual capacities of the members of the staff. Our present position, however, is by no means definitive. We have always relied heavily upon the stimulating intellectual activities of the younger members of the staff. When recruitment is again possible we expect to strengthen our position markedly through the cooperation of these younger members.

The reorganization of instruction has been concerned mainly with the content and coverage of courses, but in some cases it has dealt with the actual methods of classroom instruction. The introductory course has been completely recast, involving new types of material and new methods of presentation. The full effects of these changes will have to wait upon the enlargement of our junior staff. Also, some of our plans involving quantitative instruction necessarily are held in abeyance until the questions regarding a statistical laboratory have been settled.

The war effort of many officers of the Department continued through the year. Professor Mason and Drs. Sweezy and Dunlop were on leave from the University devoting their entire time to their respective wartime assignments. Professor Chamberlin returned to Cambridge in February from his post with the office of Strategic Services. Other members of the Department, particularly Professors Hansen, Slichter, Harris, Leontief and Black, while meeting their University obligations also served in various capacities with wartime agencies.

The incidence of this wartime service upon research and publishing activities of the group was marked. Both books and articles were fewer in number than in the normal year and in the main reflected the particular war activities of the authors. However, in all some

34 articles and 7 books were published. It should be noted that at least three volumes which the authors had expected to complete in the last year are now being prepared for the press.

The difficulties involved in the publication of scientific journals have been great but not insurmountable. We have been able to continue the publication of the Quarterly Journal of Economies and the Review of Economic Statistics without reduction in size and without omission of numbers. In the Harvard Economic Series [rest of line blank] that some four volumes either in the hands of the press or the Department were ready for publication but because of the war restrictions were not actually published.

Latterly the Department has been concerned with the vexing problems of the definition of objectives of students on the graduate level and the adjustment of these objectives to the various higher degrees offered. We are concerned with the administration not only of the Ph.D. degree in Business Economies, the Ph.D. in Political Economy and Government, and in part with the Ph.D. in Public Administration which may be conferred through the Littauer School of Public Administration. The problems involved in defining and administering each of these degrees will receive continued attention.

Although no honorary degrees have been reported by members of the staff, Professor E. H. Chamberlin was elected Membre Correspondent de L’Institut de Science Économique Appliquée, May 1945, and Professor S. E. Harris was elected to membership in the American Academy of Arts and Sciences.

Very sincerely,

[H.H. Burbank]

_______________________

1945-46

September 30, 1946

Dear Dean Buck:

You have requested a brief report on the Department of Economics for the academic year 1945-46.

Although the Department of Economics had anticipated to a considerable extent the problems that would be presented by the post-war situation, it found the academic year 1945-46 presenting difficulties for which there, was no immediate solution.

Fortunately we had devoted a great deal of time and thought to our course offering and to methods of instruction. We were moderately well prepared to take up the new work involved in new instruction and also the work involved in changing the content of, old courses. Again we were fortunate in being able to meet most of the difficulties presented by the unprecedented number of graduate students. With all of the permanent members of the staff in residence, we were able to meet the graduate situation although it taxed our resources to the limit. Many of our most insistent problems were concerned with the difficulties we met in assembling and training an adequate junior staff. We began the fall term with 2 Assistant Professors (Faculty Instructors), 3 Annual Instructors, and 7 Teaching Fellows. The staff was increased during the year but it was far from adequate to meet the course work, involved in our offering. However, this would seem to be a problem of relatively short duration. A few young scholars are being brought from other institutions and occupations and our Graduate School contains a number of most promising young scholars whose development is proceeding rapidly.

During the fall of 1945 the Department surveyed repeatedly the obligations it had undertaken. We were committed to an elaborate course offering. He realized that the permanent personnel of the Department could not be expanded and we recognized that in the range of the junior staff immediate and extensive increases in personnel also were impossible. Because of the irreducible demands upon our limited resources, we reconsidered repeatedly our efforts in the area of tutorial instruction and eventually voted to suspend tutorial instruction for a period with the stipulation that the subject be reconsidered at such time as the Department might see fit and in no event not later than two years.

The foregoing remarks have indicated that all members of the staff are carrying much heavier loads than in pre-war days. The burden necessarily is apportioned unevenly but all are affected. The main incidence of this situation is on research. For some officers it means that research must be put aside temporarily. For others, less than ordinary progress is being made. However, as the following titles indicate, the contributions have been substantial:

Black, John D., and a committee consisting of M. R. Benedict, S. T. Dana, and L. K. Pomeroy; Credit for Small Timberland Owners, Including Farmers with Woodlands; A Report on Forest Credit. (In press)

Black, John D., with some guidance from Jorge Ahumada of Chile, Roberto Arellano Bonilla of Honduras, and Jorge Alcazer of Bolivia; Farm Cost Analysis, with Some Reference

Black, John D.; Clawson, Marion; Sayre, C.F.; Willcox, W. W.; Farm Management. The Macmillan Company (in press).

Chamberlin, E. H.; Fifth edition of the Theory of Monopolistic Competition (Chapter added). Translation of the above book into Spanish.

Crum, W. L., and Schumpeter, J. A.; Rudimentary Mathematics for Economists and Statisticians. McGraw-Hill.

Hansen, A. H.; America’s Role in the World Economy. W. W. Norton.

Hansen, A. H.; The United States After the War. Cornell Uiv. Press.

Hansen, A. H.; Financing American Propsperity. 20th Century Fund.

Harris, S. E.; Price Control in the International Field. (In press)

Harris, S. E.; National Debt. (In press)

Mason, E. S.; Controlling World Trade; Cartels and Commodity Agreements. McGraw-Hill.

Morgan, T.; The Development of the Hawaiian Economy, 1778-1876. Stanford Press. (In press)

In addition to the above books, some 72 articles have been contributed to scientific journals. We feel particularly happy in having been able to carry our publications, the Quarterly Journal of Economics and the Review of Economic Statistics, through the war period without serious alterations. Both publications are in sound financial condition. Actually, the Review of Economic Statistics will be in a much sounder position financially at the end of the current fiscal year than at the beginning of the war. However, increased publication costs are a matter for concern.

We have added two volumes to the Harvard Economic Series and published a revision of one. Three more volumes are now in the press. Again, increasing publication costs constitute a serious problem.

As mentioned above, all of the permanent officers of the Department had returned to active duty in Cambridge at the beginning of the year. A few officers have maintained contacts with various Washington departments and on occasion are called upon for consultation. In this connection, Professor John D. Black has served as Chairman of the Committee on Food Supplies for the Food and Nutrition Board of the National Research Council and also has served actively with at least four other agencies. Professor John T. Dunlop has served as Consultant in the Office of Economic Stabilization and the Office of War Mobilization and Reconversion. Professor Seymour E. Harris has served as Consultant for the office of Price Administration. Professor Edward S. Mason has served as Consultant for the Department of State.

Very sincerely,

H. H. Burbank

Dean Paul H. Buck
5 University Hall

_______________________

Source: Harvard University Archives. Department of Economics, Correspondence and Papers 1930-1961 (UAV 349.11). Box 2, Folder “Provost Buck—Annual Report of Dept.”

Image Source: A Harvard Army ROTC unit on parade along Memorial Drive, July 1943. From the Harvard Archives published in: Coreydon Ireland,  “To Honor the Living and Dead“, The Harvard Gazette (November 10, 2011).

Categories
Economics Programs Harvard Regulations

Harvard. Graduate Exam Grade Distributions, 1971-72

 

From the distribution of grades for graduate economics examinations from the academic year 1971-72 at Harvard we see that the range from Good-minus through Good-plus covered the majority of grades awarded at that time…except for economic history. Gerschenkron fought grade inflation his way (zero grades of  “excellent”), stingy award of grades of “good”).  Economic history now sits in a n.e.c. (not elsewhere classified) requirement to get a Harvard Ph.D. in economics (a course in economic history or political economy or behavioral economics).

Previous posts dealing with economics Ph.D. requirements fifty-some years ago:

Harvard. Economics Ph.D. Regulations, 1968

Harvard. Report on the General Examination for an Economics PhD, 1970

____________________________

HARVARD UNIVERSITY
Department of Economics

Cambridge, Massachusetts 02138
December 12, 1972

To: All Professors in the Department of Economics

From: Nancy Frolkis, Graduate Secretary

The tabulation of examination results for the academic year 1971-72 has been completed. We have enclosed a copy since we thought it would be of interest to you.

*  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *

EXAM RECORDS
September 1971-September 1972

Written Theory Examination

Excellent

2

Excellent Minus

2

Good Plus

6

Good

16

Good Minus

7

Fair Plus

2

Fair

6

Fair Minus

6

Fail

3

TOTAL

50

 

Quantitative Methods Examination

Pass

5

Fail

1

TOTAL

6

 

Oral History Examination

Excellent

0

Excellent Minus

0

Good Plus

0

Good

3

Good Minus

1

Fair Plus

0

Fair

5

Fair Minus

1

Fail

3

TOTAL

13

 

General Oral Examination

Excellent

1

Excellent Minus

1

Good Plus

5

Good

10

Good/Good Minus

1

Good Minus

13

Fair Plus

10

Fair

2

Fair Minus

2

Fail

1

TOTAL

46

 

Thesis Grades

Excellent

2

Excellent Minus

6

Good Plus

6

Good

6

Good Minus

5

Fair Plus

4

Fair

2

Fair Minus

0

Fail

0

Not yet graded

1

TOTAL

32

 

Special Examination

Excellent

2

Excellent Minus

5

Good Plus

7

Good

7

Good Minus

7

Fair Plus

3

Fair

1

Fair Minus

0

Fail

0

TOTAL

32

 

Comparison between Thesis
and Special Examination

Same grade for exam and thesis

13

Exam ½ grade higher than thesis

6

Exam ½ grade lower than thesis

9

Exam 1 full grade higher than thesis

2

Exam 1 full grade lower than thesis

1

Unknown (thesis not graded)

1

TOTAL

32

 

Source: Harvard University Archives. Papers of Alexander Gerschenkron, Box 3, Folder: “Economics (General) 1972/73”.

 

Categories
Exam Questions Harvard

Harvard. Semester exams for all economics and one social ethics course, 1893-1894

 

With this post Economics in the Rear-view Mirror adds yet another annual slice of final examinations from Harvard. Over twenty pages of exam questions (with course enrollment figures) for the 1893-94 academic year have been transcribed and are now available to the internet community of historians of economics.  For other years visitors can simply scan or search the chronological catalogue of artifacts. Alternatively using Google search constrained to Economics in the Rear-view Mirror, “harvard economics exams site:irwincollier.com“, will get you links to plenty of Harvard examination postings through the years.

______________________

Enrollment for Philosophy 5.
The Ethics of the Social Questions.
1893-94.

Enrollment.

[Philosophy] 5. Professor Peabody. — The Ethics of the Social Questions. — The questions of Charity, Divorce, the Indians, Temperance, and the various phases of the Labor Question, as problems of practical Ethics. — Lectures, essays, and practical observations. 2 hours.

Total 118: 6 Gr., 56 Se., 23 Ju., 2 So., 12 Others, 19 Divinity.

Source: Harvard University. Report of the President of Harvard College, 1893-94, p. 58.

1893-94.
PHILOSOPHY 5.
THE ETHICS OF THE SOCIAL QUESTIONS.
Mid-Year Examination.

  1. “Political Economy ought to combine with the old question: ‘Will it pay?’ another and higher query: ‘Is it right?’” (C. D. Wright, Political Economy and the Labor Question, p. 17.) The place and value of this view of Political Economy.
  2. Spencer’s formula for conduct, explained and criticized (Data of Ethics, p. 14.)
  3. The Socialist’s view of Charity and the argument which sustains it. Mr. Spencer’s view of Charity and his practical advice. (Principles of Ethics, II. p. 376, ff.)
  4. What does Mr. Charles Booth regard as the “crux” of the Social Problem in East London? (Labour and Life of the People, I. pp. 596 and 162.) Why? The practical remedy proposed by him.
  5. The causes of poverty in East London, as analyzed by Mr. Booth, (I. 147); in their order of importance and the proportion of cases involved.
  6. The Labor Colonies of Germany compared with those of Holland, in method and intention. How far, and under what principle, is such an enterprise applicable to the condition of this country?
  7. Liberalitas” and “Caritas,” — the aim, the service, and the peril of each.
  8. The historical development and the practical rules of the English Poor-Law System.
  9. The Relation of Charity Organization in England to Poor-Law Relief. (Loch, p. 37, ff.); and the objections to Charity Organization. (Loch, p. 97, ff.)
  10. The growth of Charity Organization in the United States, its present extent and its two types (Report, pp. 1-8.) Which type is represented by the London Charity Organization Society? (Loch p. 54.) Which is the sounder principle for this country? Why? Which is the more generally accepted principle? (Appendix of Report, p. 34.)

Source: Harvard University Archives. Harvard University, Mid-year examinations, 1852-1943. Box 3, Volume: Examination Papers, Mid-Year, 1893-94

PHILOSOPHY 5.
THE ETHICS OF THE SOCIAL QUESTIONS.
Final Examination

[Omit one question.]

  1. The authorship and the historical importance of the following phrases:—
    “The value of a thing is independent of opinion and of quantity. To be valuable is to avail towards life.”
    “All commodities are only masses of congealed labor-time.”
    “The high road to a stable sufficiency and comfort among the people is through the medium of their character.”
    “Cash-payment never was or could, except for a few years, be the union-bond of man to man.”
    “Aristocracy of talent.”
    “It is easier to determine what a man ought to have for his work, than what his necessities will compel him to take for it.”
    “Ill-th.”
  2. Compare Carlyle and Ruskin in their attitudes toward the growth of democracy and in their doctrine of social progress.
  3. Compare the view of the “Social Horizon” with that of Naquet as to the effect of collectivism on enterprise and invention. (Social Horizon, pp. 112-151; Naquet, pp. 92-126.)
  4. The Anarchist’s criticism of the Socialist, the Socialist’s criticism of the Anarchist, and the Communist as he is criticised by both.
  5. Is thrift a virtue? Who doubts it? Why?
    Is competition an evil? Who doubts it? Why?
  6. Christian Socialism and its difficulties. The logical and the practical relation of Socialism to Religion.
  7. In the four ideals which are possible to Socialism and Individualism, “the normal relation would be that of cross-correspondence.” (Bosanquet. The Civilization of Christendom, p. 136.) Explain and comment on this statement.
  8. Enumerate and classify the arguments presented in the Course on the ethical aspects of Socialism, with your judgment of the weight of these suggestions.
  9. Compare the plan of profit-sharing in the Paris and Orleans Railway (Sedley Taylor, pp. 77-86) with that adopted by the Chicago, Burlington and Quincy Railroad.
  10. How far are we carried in the argument for abstinence from intoxicating drink by considerations drawn from the “risks of life.” Why?

Source: Harvard University Archives. Harvard University, Examination papers, 1853-2001. Box 2, Volume: Papers Set for Final Examinations in Philosophy, History, Government and Law, Economics, Fine Arts, and Music in Harvard College, June 1894, p. 7.

______________________

Economics 1.
Outlines of Economics.
1893-94.

Enrollment.

[Economics] 1. Professors Taussig and Ashley, Asst. Professor Cummings and Mr. Clow. — Outlines of Economics. — Mill’s Principles of Political Economy. — Lectures on Economic Development, Distribution, Social Questions, and Financial Legislation. 3 hours.

Total 340: 1 Gr., 35 Se., 111 Ju., 136 So., 7 Fr., 50 Others.

Source: Harvard University. Report of the President of Harvard College, 1893-94, p. 61.

1893-94.
ECONOMICS 1.
Mid-Year Examination.

[Arrange your answers strictly in the order of the questions.
One question may be omitted.]

  1. “Let us consider whether, and in what cases, the property of those who live on the interest of what they possess, without being personally engaged in production, can be regarded as capital.” Illustrate by example.
  2. “Capital, though saved, and the result of saving, is nevertheless consumed. The word saving does not imply that what is saved is not consumed, nor even necessarily that its consumption is deferred.” Explain. Who is the consumer? and is the consumption usually deferred?
  3. Are wages likely to be low or high in different occupations because of (1) attractiveness, (2) unpleasantness, of the work? Why?
  4. “This equalizing process, commonly described as the transfer of capital from one employment to another, is not necessarily the slow, onerous, and almost impracticable process which it is often represented to be.” What is the equalizing process? and why is it or is it not slow and onerous?
  5. “Even if there were never any land taken into cultivation for which rent was not paid, it would be true, nevertheless, that there is always some agricultural capital which pays no rent.” Explain, and give the reasons for the statement.
  6. What are the laws of value applicable to: silver bullion, cotton-cloth, raw hides, wheat-bread, telephones?
  7. Explain what is meant by a fall in the value of money; an appreciation of gold; a depreciation of inconvertible paper; a stable standard of value.
  8. Wherein does the play of demand and supply, in determining the value of money, differ from its operation in determining the value of commodities in general? Wherein does cost of production determine the value of money and of commodities differently?
  9. What is the effect of general high wages on prices? on values? on profits? Why?
  10. “So far as rents, profits, wages, prices. are determined by competition, laws may be assigned for them. Assume competition to be their exclusive regulator, and principles of broad generality and scientific precision may be laid down, according to which they will be regulated.” Trace the historical origin of the conditions here assumed.
  11. What seems to you to be the value of economic history in relation to the study of economic theory?

Source: Harvard University Archives. Harvard University, Mid-year examinations, 1852-1943. Box 3, Volume: Examination Papers, Mid-Year, 1893-94.

1893-94.
ECONOMICS 1.
Final Examination.

[Arrange your answers strictly in the order of the questions.]

I.
[One question in this group may be omitted.]

  1. Explain the connection between the law of diminishing returns the pressure of population on subsistence; the tendency of profits to a minimum.
  2. What is the nature of the remuneration received by the holder of a government bond; the holder of a railway bond; the landlord of a building let for business purposes; the landlord of land let for agricultural purposes; a manufacturer carrying on business with borrowed capital; the holder of a patent receiving a royalty for its use?
  3. How does cost of production influence tire value of (1) silver bullion, (2) oats, (3) coffee, (4) bicycles?
  4. What seems to you to be the value of economic history in relation to the study of economic theory?

II.
[One question in this group may be omitted.]

  1. In 1851, very rich deposits of gold were found in Australia. What would you expect the result to be in Australia on wages, prices, imports and exports?
  2. Is the gain from international trade to be found in the import or in the exports? Why and how?
  3. It is said that when the quantity of money is increased, prices rise precisely in proportion to the increase. What exceptions or qualifications would you make to this statement?
  4. Is the exportation of specie from a country disadvantageous?

III.
[Answer all in this group.]

  1. What sorts of advantages, in regard to wages, do Trade-unions and Coöperative Societies offer to workingmen?
  2. “Deposits are currency.” What is meant?
  3. What is the most important objection to the use of inconvertible paper money? What illustrations of its force do you find in the experience of the United States since 1860?
  4. Compare the policy followed in times of panic by the Bank of England, the Reichsbank of Germany, and the National Banks of the United States.

Source: Harvard University Archives. Harvard University, Examination papers, 1853-2001. Box 2, Volume: Papers Set for Final Examinations in Philosophy, History, Government and Law, Economics, Fine Arts, and Music in Harvard College, June 1894, pp. 34-35.

______________________

Economics 2.
Economic Theory from Adam Smith
to the Present Time.
1893-94.

Enrollment

For Graduates and Undergraduates:—

[Economics] 2. Professor Taussig. — Economic Theory from Adam Smith to the present time. — Examination of selections from leading writers. 3 hours.

Total 43: 12 Graduates, 16 Seniors, 10 Juniors, 1 Sophomore, 4 Others.

Source:   Harvard University, Annual Reports of the President and Treasurer of Harvard College, 1893-94, p. 61.

1893-94
ECONOMICS 2.
Mid-Year Examination.

[Arrange your answers strictly in the order of the questions.
Write with deliberation, but answer all the questions.]

  1. “It is no doubt true that a portion of capital is always remuneratory and not auxiliary in its nature; that is, does not consist of instruments that make labour more efficient, but of finished products, destined for the consumption of labourers and others. This part of capital continually becomes real wages (as well as real profits, interest, and rent), being purchased by the labourer with the money wages he receives from time to time. But it does not seem to me therefore correct to regard the real wages as capital ‘advanced’ by the employer to the labourer. The transaction between the two is essentially a purchase, not a loan. The employer purchases the results of a week’s labour, which thereby becomes part of his capital, and may be conceived — if we omit for simplicity’s sake the medium of exchange — to give the labourer in return some of the finished products of his industry.”
    Consider whether and how remuneratory capital continually becomes real interest and rent, as well as real wages; and give your opinion as to the closing analysis of the relation between employers and laborers.
  2. Suppose (1) that profit-sharing were universally adopted; (2) that laborers habitually saved a very large part of their income, — and consider whether any modification must be made in the reasoning of those who would maintain a Wages-Fund doctrine.
  3. It has been said that while the capital of the employing class is the immediate source from which wages are paid, the ultimate and important source is the income of the consumers who buy the goods made by the laborers for the capitalists. Consider this doctrine.
  4. Compare critically the treatment by Walker, Sidgwick, and Ricardo, of the relation between the profits of the individual capitalist and the amount of capital owned by him.
  5. State carefully Ricardo’s criticism of Adam Smith’s doctrine on labor as the measure of value.
  6. Compare Adam Smith’s reasoning with Ricardo’s as to the manner in which the progress of society in wealth affects profits.
  7. “We have seen that in the early stages of society both the landlord’s and the labourer’s share of the value of the produce of the earth would be but small; and that it would increase in proportion to the progress of wealth and the difficulty of procuring food. We have known, too, that although the value of the labourer’s portion will be increased by the high value of food, his real share will be diminished; while that of the landlord will not only be raised in value, but will also be increased in quantity.”
    Explain the reasoning by which Ricardo reached the several conclusions here summarized, and give your opinion as to the soundness of the conclusions.

Source: Harvard University Archives. Prof. F. W. Taussig, Examination Papers in Economics 1882-1935 (Scrapbook). Also: Harvard University Archives. Harvard University, Mid-year examinations, 1852-1943. Box 3, Volume: Examination Papers, Mid-Year, 1893-94.

1893-94
ECONOMICS 2.
[Final Examination.]

  1. “Perhaps the most striking conflict of the Wages-Fund-theory with facts, is found in the periodical influctions and depressions of trade. After a commercial crisis, when the shock is over and the necessary liquidation has taken place, we generally find that there is a period during which there is a glut of capital, and yet wages are low. The abundance of capital is shown by the low rate of interest and the difficulty of obtaining remunerative investments.” — Nicholson, Political Economy
    How far is the theory in conflict with the facts here adduced?
  2. How is the significance of the doctrine of consumer’s rent affected by the fact that the money incomes of different purchasers vary widely?
  3. Explain Marshall’s doctrine as to the influence on wages of the standard of living among laborers; and consider how far it differs from Richard’s teaching as to the connection between wages and the price of food.
  4. Explain Marshall’s doctrine of the quasi-rent of labor; compare it with his conclusions as to the rent of business ability; and point out how far he finds in either case something analogous to economic rent as defined by the classic writers.
  5. “It is not true that the spinning of yarn in a factory, after allowance has been made for the wear-and-tear of the machinery, is the product of the labour of the operatives. It is the product of their labour (together with that of the employer and subordinate managers) and of the capital; and that capital itself is the product of labour and waiting; and therefore the spinning is the product of labour (of many kinds) and of waiting. If we admit that it is the product of labour alone, and not of labour and waiting, we can no doubt be compelled by inexorable logic to admit that there is no justification for interest, the reward of waiting.”
    How far would you accept this reasoning?
  6. “Barter, though earlier historically than buying and selling, is really a mere complex transaction, and the theory of it is rather curious than important.” — Marshall.
    “The attribute of normal or usual value implies systematic and continuous production.” — Cairnes.
    “Where commodities are made for sale, the sellers’ subjective valuations fall out altogether, and price is determined by the valuation of the last buyer.” — Böhm-Bawerk.
    Explain these statements, separately or in connection with each other.
  7. What does Böhm-Bawerk mean by the general subsistence market, or the total of advances for subsistence; and how far do the “advances” differ from the wages-fund of the classic economists?
  8. Explain Böhm-Bawerk’s views as to the connection between the prolongation of the period of production, and the increase in the productiveness of labor; and consider how far his conclusions as to interest would need to be modified, if those views were changed.
  9. Explain briefly, by definition or example, the sense in which Böhm-Bawerk uses the terms, —

social capital;
private capital;
subjective value;
marginal pairs;
technical superiority of present goods.

Source: Harvard University Archives. Prof. F. W. Taussig, Examination Papers in Economics 1882-1935 (Scrapbook). Also: Harvard University Archives. Harvard University, Examination papers, 1853-2001. Box 2, Volume: Papers Set for Final Examinations in Philosophy, History, Government and Law, Economics, Fine Arts, and Music in Harvard College, June 1894, pp. 35-36.

___________________________

Economics 3.
Principles of Sociology.
1893-94.

Enrollment.

[Economics] 3. Asst. Professor Cummings. — The Principles of Sociology. — Development of the Modern State, and of its Social Functions. 3 hours.

Total 47: 17 Gr., 19 Se., 5 Ju., 6 Others.

Source: Harvard University. Report of the President of Harvard College, 1893-94, p. 61.

 

1893-94.
ECONOMICS 3.
Mid-Year Examination

(Arrange your answers in the order of your questions. Omit two.)

  1. “In fact, the conception of society as an organism seems to admit of more easy application to just those very views about the State which Mr. Spencer most dislikes: and, though the conception or organism has its value in helping political thinking out of the confusions of individualism, if it be taken as a final key to all mysteries, it leads to new confusions of its own, for which it would be absurd to blame Mr. Spencer.” Explain and criticise.
  2. How does Spencer account for the diverse types of political organization; and what influences determine the order in which they arise? Illustrate.
  3. What evidence of political evolution is there in the sequence of the various forms of political organization in Greek, Roman, and Medieval society? Trace the steps.
  4. According to Burke, “Society is indeed a contract. … It is a partnership in all science; a partnership in all art; a partnership in every virtue and in all perfection. As the ends of such a partnership cannot be obtained in many generations, it becomes a partnership not only between those who are living, but between those who are living, those who are dead, and those who are to be born.” Explain. How does this differ from earlier conceptions of the social contract? From the conception of society as an organism?
  5. Upon what grounds does Spencer base his preference for the industrial rather than the militant type of society?
  6. According to Jevons, “the first step must be to rid our minds of the idea that there are any such things in social matters as abstract rights, absolute principles, indefeasible laws, inalterable rules, or anything whatever of an eternal and inflexible nature.” According to another view, “the state presupposes rights and the rights of individuals.” What is your own opinion? Why? Are there “Natural Rights”? Illustrate.
  7. “The State is after all the least of the powers that govern us.” How far is this true at different stages of social development?
  8. What is involved in the conception of Sovereignty? In whom is it rested? On what does it rest? For example, England and the United States.
  9. What is the bearing of Comte’s maxim, “Voir pour prevour,” upon the doctrine of social evolution?
  10. “The environment in our problem must, therefore, not only include psychical as well as physical factors, but the former are immeasurably the more important factors, and as civilization advances their relative importance steadily increases.”
  11. What do you mean by State Interference? By Individual liberty?

Source: Harvard University Archives. Harvard University, Mid-year examinations, 1852-1943. Box 3, Volume: Examination Papers, Mid-Year, 1893-94.

1893-94.
ECONOMICS 3.
Final Examination

[Questions are in all cases to be discussed with direct reference to facts and theories presented in this course. Arrange your answers in the order in which the questions stand. Take either the first question or six others.]

  1. Devote three hours to a discussion of “Social Evolution”;— expounding Mr. Kidd’s views, discussing his opinions and conclusions in the light of facts and theories presented in this course, and stating carefully your own reasons for agreeing or disagreeing.
  2. What, according to Mr. Kidd, are the necessary “Conditions of Human Progress”? Do you agree or disagree? Why?
  3. What are the points of resemblance and of difference between the “Scientific Socialism” of today and earlier forms of so-called socialistic propaganda which have appeared within this century?
  4. “Step by step the community has absorbed them, wholly or partially, and the area of private exploitation has been lessened. Parallel with this progressive nationalization or municipalization of industry, there has gone on, outside, the elimination of the purely personal element in business management.” Indicate briefly the character, extent and probable significance of “nationalization and municipalization” in the United States and in European Countries.
  5. What inferences may and what may not safely be drawn from American experience in municipal ownership or control of gas, of water, and of electric light plants? Discuss carefully the extent and character of the evidence.
  6. “According to them, the tribe or horde is the primary social unit of the human race, and the family only a secondary unit, developed in later times. Indeed, this assumption has been treated by many writers, not as a more or less probable hypothesis, but as a demonstrated truth. Yet the idea that a man’s children belong to the tribe, has no foundation in fact.” Indicate briefly the present state of this controversy. What significance do you attach to it?
  7. “The central fact with which we are confronted in our progressive societies is, therefore, that the interests of the social organism and those of the individuals comprising it at any time are actually antagonistic; they can never be reconciled, they are inherently and essentially irreconcilable.” State carefully the arguments for and against this position.
  8. “True Socialism of the German type must be recognized to be, ultimately, as individualistic and as anti-social as individualism in its advanced forms.” By what line of reasoning is this conclusion reached? State carefully your reasons for agreeing or disagreeing.

Source: Harvard University Archives. Harvard University, Examination papers, 1853-2001. Box 2, Volume: Papers Set for Final Examinations in Philosophy, History, Government and Law, Economics, Fine Arts, and Music in Harvard College, June 1894, pp. 36-37.

___________________________

Economics 5 (First Semester).
Railway Transportation.
1893-994.

Enrollment.

[Economics] 51. Professor Taussig. — Railway Transportation. — Lectures and written work. 3 hours. 1st half-year.

Total 39: 3 Gr., 24 Se., 9 Ju., 1 So., 2 Others.

Source: Harvard University. Report of the President of Harvard College, 1893-94, p. 61.

1893-94.
ECONOMICS 5.
Final [Mid-Year] Examination.

[Arrange your answers strictly in the order of the questions.]

  1. State what important general lessons are to be learned from the early experiments of Pennsylvania and Michigan in constructing and managing transportation routes.
  2. Why the change in the attitude of the public towards the Pacific railways after 1870? And what were some consequences of the change?
  3. What was the effect of the land-grant system on the welfare of the community, and on railway profits?
  4. “These conditions [leading to financial losses] may fairly enough be described as the Interstate Commerce Commission describes them, — parallel railroad construction and wars of rates. But when the Commission goes on to say that they cannot with any justice be claimed to have resulted from the act or from its administration, they make an unwarranted assertion.” What were the conditions here referred to (give dates)? And was the assertion unwarranted?
  5. Consider the probable results of the repeal of the section of the Interstate Commerce act which prohibits pooling.
  6. “High rates on some articles are not to be regarded as a tax which could be removed if low rates on others were abandoned.” Why not?
  7. “The enormous fixed capital and the consequent impossibility of retiring from the enterprise if it becomes unprofitable; the greater or less degree of monopoly; the wide gulf between railway managers and investors, sometimes leading to consequences of its own,” consider in what manner and extent these circumstances have affected railway rates in the United States.
  8. What do you believe to be the significance and importance of the following figures (for the United States in 1891):
Revenue per passenger mile 2.142 cents
Average cost of carrying a passenger one mile 1.910 cents
Revenue per ton mile 0.895 cents
Average cost of carrying a ton one mile 0.583 cents
Revenue per freight train mile $1.63
Average cost of running a freight train one mile $1.06
  1. Compare the course of railway policy in France, Prussia, and Italy, in 1880-85.
  2. Compare the principles which underlie the natural (car-space) system of freight rates and the zone system of passenger rates.

Source: Harvard University Archives. Harvard University, Examination papers, 1853-2001. Box 2, Volume: Papers Set for Final Examinations in Philosophy, History, Government and Law, Economics, Fine Arts, and Music in Harvard College, June 1894, pp. 37-38.

___________________________

Economics 6 (Second Semester)
History of Tariff Legislation
in the United States.
1893-94.

Enrollment.

[Economics] 62. Professor Taussig. — History of Tariff Legislation in the United States. 3 hours. 2d half-year.

Total 97: 11 Gr., 33 Se., 36 Ju., 2 So., 1 Fr., 14 Others.

Source: Harvard University. Report of the President of Harvard College, 1893-94, p. 62.

1893-94.
ECONOMICS 6.
Final Examination

[Arrange your answers strictly in the order of the questions.
Answer all the questions.]

  1. Is it to be inferred from Hamilton’s Report on Manufactures that if he were now living, he would not be an advocate of protection?
  2. What grounds are there for saying that the act of 1789 was a protective measure?
  3. State the important provisions of the act of 1816, and consider whether it differs in any essentials from the act of 1824.
  4. Was Clay right in affirming, or Webster in denying, that the protective system of 1824 was “American”?
  5. How would you ascertain what were the duties, in 1840, on (1) woollen goods, (2) cotton goods, (3) silk goods, (4) bar iron?
  6. Suppose the present specific duties on woollen manufactures to be removed; the ad valorem duties to remain unchanged; wool to be admitted free; and consider how far there would ensue a change in the effective protection given on finer woollen cloths, on cheaper woollen cloths, and on carpets.
  7. Mention briefly what were the duties on tea and coffee in the successive stages of tariff legislation from 1789 to 1890; noting the significance of the changes made from time to time.
  8. Why do the effects, in recent times, of the duties on flax and hemp, and on glassware, “reduce themselves in the last analysis to illustrations of the doctrine of comparative costs”?
  9. Wherein is there resemblance, wherein difference, between the general course of tariff history in the United States after the civil war, and in France after the Napoleonic wars?
  10. What would be the probable effects of the removal of the present duties on cotton goods?

Source: Harvard University Archives. Harvard University, Examination papers, 1853-2001. Box 2, Volume: Papers Set for Final Examinations in Philosophy, History, Government and Law, Economics, Fine Arts, and Music in Harvard College, June 1894, pp. 38-39

___________________________

Economics 8 (First Semester)
History of Financial Legislation
in the United States.
1893-94.

Enrollment.

[Economics] 81. Professor Dunbar. — History of Financial Legislation in the United States. 2 hours. 1st half-year.

Total 63: 9 Gr., 26 Se., 23 Ju., 1 So., 4 Others.

Source: Harvard University. Report of the President of Harvard College, 1893-94, p. 62.

1893-94.
ECONOMICS 8.
Mid-Year Examination.

Instead of answering the starred questions in this paper you may substitute, if you prefer, an essay on the subject marked A, printed at the close.

  1. *“It is sometimes said that Mr. Hamilton believed in a perpetual debt, and when one notices the form into which he threw the obligations of the United States, the only escape from this conclusion is to say that he was ignorant of the true meaning of the contracts which he created.” — [H. C. ADAMs, Public Debts, p. 161.]
    How far is the above remark confirmed by the provisions as to the payment of the debt funded by the Act of 1790?
  2. How far should you say that Gallatin, although an anti-Federalist, finally adopted Federalist measures or methods in financial matters?
  3. Give a general statement of the agreement between the banks and the Treasury for the resumption of specie payment in 1817, and show the way in which it was intended to operate.
  4. Inasmuch as Jackson’s general prepossessions were unfavorable to all banks, how are we to explain his resort to the plan of depositing Government funds in State banks after the removal of the deposits in 1833?
  5. *How serious a blow did Jackson really strike when he removed the deposits from the United States bank in 1833?
  6. What expedients were suggested for supplying the needs of the government in 1861-62 without resorting to the issue of legal-tender notes?
  7. *The “Gold Bill” of June 17, 1864, and its fate.
  8. What was the process by which the bonds issued during the war were refunded under the act of 1870 and when did the refunding take place?
  9. What signs of change in the policy of Congress as to the resumption of specie payments are to be found in the legislation between 1865 and 1876?
  10. State the provisions of the Resumption Act of 1875 as to the redemption of legal-tender notes, and show whether the act did or did not provide for the possible eventual disappearance of all the notes. What has made the amount of outstanding legal-tender notes stationary at $346,681,016?
  11. *A recent writer, discussing the question of a paper currency issued by government, says:—
    “In the United States there were twenty issues of treasury notes before the late war. Those issues were receivable in the revenues the government, and were always preferred to gold.”
    What criticism is to be made on this statement?
  12. *Describe the different kinds of paper currency now in use in the United States, stating as to each the cases in which it can be tendered for private debt, and those which it. can he received or paid out by the government.

*  *  *  *  *  *  *  *  *  *
A.

The change which has taken place since 1846 in the conditions affecting the Independent Treasury, and the justification of Secretary Carlisle’s statement, in the Finance Report for 1893, that “the laws have imposed upon the Treasury Department all the duties and responsibilities of a bank of issue, and to a certain extent the functions of bank of deposit.”

Source: Harvard University Archives. Harvard University, Mid-year examinations, 1852-1943. Box 3, Volume: Examination Papers, Mid-Year, 1893-94.

___________________________

Economics 9.
The Social and Economic Condition of Workingmen in the United States and in other countries.
1893-94.

 Enrollment.

[Economics] 9. Asst. Professor Cummings. — The Social and Economic Condition of Workingmen in the United States and in other countries. 3 hours.

Total 43: 7 Graduates, 16 Seniors, 11 Juniors, 3 Sophomores, 1 Freshman, 5 Other.

Source: Harvard University. Annual Report of the President of Harvard College, 1893-94, p. 61.

Mid-year Examination.
ECONOMICS 9.
1893-94.

(Arrange your answers in the order in which the questions stand. So far as possible illustrate your discussions by a comparison of the experience of different countries. Omit two questions.)

  1. “It becomes my duty, therefore, in undertaking to interpret the social movement of our own times, to disclose, first, those changes in industrial methods by which harmony in industries has been disturbed, and then to trace the influence of such changes into the structure of society.” State carefully what these changes have been; and trace their influence.
    [Henry C. Adams. “An Interpretation of the Social Movements of our Time”, International Journal of Ethics, Vol II, October, 1891), p. 33]
  2. Discuss the effect upon wages of machinery, — (a) as a substitute for labor (b) as auxiliary to labor; (c) as affecting division of labor; (d) as concentrating labor and capital; (e) as affecting the nobility[sic, “mobility”] of labor and capital.
  3. “In my opinion, combination among workingmen is a necessary step in the re-crystallization of industrial rights and duties.” State fully your reasons for agreeing or disagreeing with this opinion. What forms of combination do you include?
    [Henry C. Adams. “An Interpretation of the Social Movements of our Time”, International Journal of Ethics, Vol II, October, 1891), p. 45]
  4. “Trade-unions have been stronger in England than on the Continent, and in America….” In what respects stronger? Why? Contrast briefly the history and present tendencies of the trade-union movement in the United States, England, France, Germany, and Italy.
    [Alfred Marshall, Elements of Economics of Industry: being the First Volume of Elements of Economics (London: Macmillan, 1892), Book VI, Ch. XIII. §18, p. 404]
  5. “Trade-unions have been stronger in England than on the Continent, and in America; and wages have been higher in England than on the Continent, but lower than in America.” “Again, those occupations in which wages have risen most in England happen to be those in which there are no unions.” How far do such facts impeach the effectiveness of trade-unions as a means of raising wages and improving the condition of workingmen? What do you conceive to be the economic limits and the proper sphere of trade-union action?
    [Alfred Marshall, Elements of Economics of Industry: being the First Volume of Elements of Economics (London: Macmillan, 1892), Book VI, Ch. §18, pp. 404-405.]
  6. “We saw at the beginning that in comparatively recent years the difficulties of keeping up a purely offensive and defensive organization had brought many of the unions back nearer their old allies, the friendly societies, and emphasized the friendly benefits in proportion as the expenditure for trade disputes seemed less important.” Explain carefully this earlier and later relation of trade-unions and Friendly Societies in England.
    [Edward Cummings, The English Trades-Unions, Quarterly Journal of Economics, Vol. III (July, 1889), p. 432.]
  7. “This spirit of independent self-help has its advantages and its disadvantages. We have already had occasion to remark how slow in these Friendly Societies has been the progress of reform, and we must repeat that up to the present day it still exhibits defects.” Explain and illustrate the progress of the reform and the nature of existing defects. Does English self-help experience suggest the desirability or undesirability of imitating German methods of compulsory insurance?
  8. “Countless[sic, “Doubtless” in original] boards of arbitration and conciliation, the establishment of certain rules of procedure, agreements covering definite periods of time, may aid somewhat in averting causes of dispute or in adjusting disputes as they arise; but if we have these alone to look to, strife will be the rule rather than the exception.” Explain the various methods adopted and the results obtained. What have you to say of “compulsory arbitration?”
    [Francis A. Walker. “What Shall We Tell the Working Classes?” Scribner’s Magazine, Vol. 2, 1887.  Reprinted in Discussions in Economics and Statistics, edited by Davis R. Dewey. Vol. II315-316.]
  9. “The conclusion of the whole matter seems to be, that what is desirable is not so much to put a stop to sub-contracting as to put a stop to ‘sweating,’ whether the man who treats the workman in the oppressive manner which the word ‘sweating’ denotes be a sub-contractor, a piece-master, or a contractor.” Indicate briefly some of the principal forms of industrial remuneration, — giving the special merits and defects of each.
    [David F. Schloss. Methods of Industrial Remuneration (London: Williams and Norgate, 1892), p. 140.]
  10. “Now that I am on piece-work, I am making about double what I used to make when on day-work. I know I am doing wrong. I am taking away the work of another man.” State and criticize the theory involved in this view of production.
    [David F. Schloss. Methods of Industrial Remuneration (London: Williams and Norgate, 1892), p. 43-44.]

Source: Harvard University Archives. Harvard University, Mid-year examinations, 1852-1943. Box 3, Volume: Examination Papers, Mid-Year, 1893-94. Transcribed and posted earlier at Economics in the Rear-view Mirror.

Year-End Examination
ECONOMICS 9.
1893-94.

(Arrange your answers in the order in which the questions stand. So far as possible illustrate your discussions by a comparison of the experience of different countries. Take the first three questions and four others.)

  1. “As soon, however, as the factory system was established, the inequality of women and children in their struggle with employers attracted the attention of even the most careless observers; and, attention once drawn to this circumstance, it was not long before the inequality of adult men was also brought into prominence.” How far is this true (a) of England, (b) of the United States? Trace briefly the legislative consequences for children and for adults in the two countries.
    [Arnold Toynbee. Lectures on the Industrial Revolution of the 18th Century in England (The Humboldt Library of Popular Science Literature, Vol. 13. New York: Humboldt Publishing Co.), p. 17.]
  2. “It will be necessary, in the first place, to distinguish clearly between the failure of Industrial Coöperation and the failure of the coöperative method—a method, as we have seen, adopted, even partially, by only a very small fraction of Industrial Coöperation.” Explain carefully, discussing especially the evidence furnished by France and England.
  3. “These four concerns—the Maison Leclaire, the Godin Foundry, the Coöperative Paper Works of Angoulême and the Bon Marché—are virtually coöperative; certainly they secure to the employers and stockholders the substantial benefits of purely coöperative productive enterprises, while they are still, logically, profit-sharing establishments.” State your reasons for agreeing or disagreeing. Indicate briefly the characteristic features of each enterprise.
  4. “What inferences are we to draw from the foregoing statistics? Unmistakably this, that the higher daily wages in America do not mean a correspondingly enhanced labor cost to the manufacturer. But why so?” Discuss the character of available evidence in regard to the United States, Great Britain and the continent of Europe.
    [E. R. L. Gould. The Social Condition of Labor (Baltimore: Johns Hopkins Press, January 1893), pp. 41-2.]
  5. “The juxtaposition of figures portraying the social-economic status of workmen of different nationalities in the country of their birth and the land of their adoption furnishes lessons of even higher interest. From this we are able to learn the social effect of economic betterment.” Explain. How do the facts in question affect your attitude toward recent changes in the character and volume of our immigration?
    [E. R. L. Gould. The Social Condition of Labor (Baltimore: Johns Hopkins Press, January 1893), pp. 35-6.]
  6. “The Senate Finance Committee issued some time ago a comparative exhibit of prices and wages for fifty-two years, from which the conclusion is generally drawn that the condition of the wage earner is better to-day than it was thirty or forty years ago. A conclusion of this kind reveals the weakness of even the best statistics. No one can doubt that the work of the Finance Committee is work of high excellence, but for comparing the economic condition of workers it is of little value.” Do you agree or disagree? Why? Indicate briefly the character of the evidence.
  7. What are the principle organizations which may be said to represent the “Labor Movement” in the United States at the present time? How far are they helpful and how far hostile to one another?
  8. “In a preceding chapter I have said that as a moral force and as a system the factory system of industry is superior to the domestic system, which it supplanted.” State your reasons for agreeing or disagreeing.
    [Carroll D. Wright. Factory Legislation from Vol. II, Tenth Census of the United States, reprinted inFirst Annual Report of the Factory Inspectors of the State of New York (Albany, 1887), p. 41.]
  9. Contrast the English and the German policy in regard to Government Workingmen’s Insurance.
  10. “Gladly turning to more constructive work, I next consider some industrial changes and reforms which would tend to correct the present bias towards individualism.” What are they?
  11. Give an imaginary family budget for American, English and German operatives in one of the following industries, — coal, iron, steel, cotton, wool, glass, indicating roughly characteristic differences in such items as throw most light on the social condition of labor.

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 4, Volume: Examination Papers, 1893-95. pp. 39-41. Transcribed and posted earlier at Economics in the Rear-view Mirror.

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Economics 10.
The Elements of Economic History from the Middle Ages to Modern Times.
1893-94.

[Economics] 10. Professor Ashley. — The Elements of Economic History from the Middle Ages to Modern Times. 3 hours.

Total 51: 6 Gr., 17 Se., 20 Ju., 4 So., 1 Fr., 3 Others.

Source: Harvard University. Annual Report of the President of Harvard College, 1893-94, p. 61.

1893-94.
ECONOMICS 10.
Mid-Year Examination.

 

  1. A modern writer has insisted upon the difference between the point of view of economic history and the point of view of constitutional history. Consider this in relation to the growth of mediaeval towns.
  2. Distinguish briefly between the various processes known as “Enclosure,” and explain their relation to the open-field husbandry.
  3. What light does the history of the English woollen industry throw upon the question as to the relation between the gild and the domestic workshop?
  4. “Only one who is unacquainted with social conditions under Henry VIll. and Edward VI. can maintain that the Reformation was not responsible for English pauperism.” Discuss this.

Source: Harvard University Archives. Harvard University, Mid-year examinations, 1852-1943. Box 3, Volume: Examination Papers, Mid-Year, 1893-94.

1893-94.
ECONOMICS 10.
Final Examination.

[Candidates are requested to answer only six questions, of which the first should be one.]

  1. Translate and comment upon:
    1. Omnes isti sochemanni habent viii carrucas, et arant iii vicibus per annum. Et quisquis eorum metit in Augusto de blado domini dimidiam acram et ii vicibus in Augusto precationem.
    2. Sciatis me concessisse … civibus meis in Oxenforde omnes libertates et consuetudines et leges et quietantias quas habuerunt tempore regis Henrici avi mei, nominatim gildam suam mercatoriam cum omnibus libertatibus et consuetudinibus in terris et in silvis pasturis et aliis pertinentiis, ita quod aliquis qui non sit de gildhalls aliquam mercaturam non faciet in civitate vel suburbiis.
  2. Give some account of the changes in trade-routes during the sixteenth century.
  3. Describe the organization of industry in the middle of the reign of Elizabeth.
  4. Compare the Enclosures of the eighteenth century with those of the sixteenth.
  5. What was the condition of the mercantile marine of New England in the eighteenth century? What connection was there between this condition and the Navigation Acts?
  6. Institute a comparison between the reforms of Stein and Hardenberg and recent agrarian legislation in Ireland, or any other country with which you are familiar.
  7. What light is cast upon the teaching of (1) Adam Smith, (2) Malthus, (3) Ricardo, by contemporary economic conditions.
  8. Estimate the importance of Arthur Young in the economic history of England.
  9. What seem to you the most characteristic features of the economic development of the United States during the present century as contrasted with England.

Source: Harvard University Archives. Harvard University, Examination papers, 1853-2001. Box 2, Volume: Papers Set for Final Examinations in Philosophy, History, Government and Law, Economics, Fine Arts, and Music in Harvard College, June 1894, pp. 42-43.

___________________________

Economics 12 (First Semester).
Banking and the History
of the leading Banking Systems
1893-94.

 Enrollment.

[Economics] 121. Professor Dunbar. — Banking and the History of the leading Banking Systems. 3 hours. 1st half-year.

Total 50: 10 Gr., 24 Se., 15 Ju., 1 Other.

Source: Harvard University. Report of the President of Harvard College, 1893-94, p. 62.

1893-94.
ECONOMICS 12[1].
Mid-Year Examination

  1. Which system of banks appears to present the greatest advantages, — (a) one with a powerful central bank as in England and Germany: (b) an aristocracy of strong banks as in Scotland; or (c) a democracy of banks as in this country?
  2. In any period of financial pressure, would the Bank of England he under any obligation, legal or moral, to act for the relief of the public, if such action involved risk or loss to its stockholders? What would be the source of such obligation, if any exists?
  3. The German bank act requires every bank to hold cash, (a) for all notes issued by it above its limit of uncovered issue: (b) and amounting to at least one third of all the notes issued Why is it that notes of other banks can be reckoned as cash in one of these cases, but not in the other?
  4. What is to be said as to the proposition frequently maintained. that “note issue is in reality a function of the State as much as coinage, and should not be delegated to corporations or to private hands?”
  5. If we hold that all note issues need to be kept under national control, in order to secure uniformity of value, what ground is there for denying that all deposit banking needs the same control for the same reason?
  6. Supposing the securities required for deposit under the national banking system to be abundant and fairly attractive as investments, — would that system afford an elastic currency?
  7. To the plan of securing notes by a safety fund (as practiced formerly in New York and now in Canada), it has been objected that it would be unjust to require well-managed banks to pay for losses incurred by weak or imprudent ones, and that a premium would be offered for bad management. How much weight is there in this objection?
  8. To the plan of making the notes of a bank a first lien on its assets it has been objected,—
    “It deprives the bank of the fund which is the basis of its credit in asking for deposits Without the deposit the banks cannot do a profitable business. It is difficult to believe that, the capital being subjected to a first lien for the amount of the notes, and there being always the possibility of an over-issue of such notes, the credit of the bank in its discount and deposit business would not be impaired. is calling upon the capital to do a double work when it is already loaded with the single task of inspiring confidence in the people who have to make deposits.”
    What is the answer to this objection?
  9. Discuss the following extract from the Commercial and Financial Chronicle of May 14th, 1892:—
    “Every prerogative and attribute even of our bank notes, and still more of our silver certificates, tends to draw them away from the interior, even when the issuer is resident in a Southern or Western State, and lodge them in an Eastern city. [The semi legal-tender quality of the national bank circulation and its redemption at the Treasury help to make its movements unnatural, artificial, and impart to it a roaming character helping to force it away from the issuer, away from the country districts where it is needed, and consequently to induce its accumulation when out of active commercial employment in the great financial centres, and while there to foster and become more or less fixed in speculative ventures — that is unresponsive to commercial influences when needed for commercial work?”

Source: Harvard University Archives. Harvard University, Mid-year examinations, 1852-1943. Box 3, Volume: Examination Papers, Mid-Year, 1893-94.

___________________________

Economics 12 (Second Semester).
International Payments and the Flow of the Precious Metals.
1893-94.

Enrollment.

[Economics] 122. Professor Dunbar.—International Payments and the Flow of the Precious Metals. 3 hours. 2d half-year.

Total 38: 12 Graduates, 18 Seniors, 7 Juniors, 1 Other.

Source: Harvard University. Report of the President of Harvard College, 1893-94, p. 62.

1893-94
ECONOMICS 122.
Final Examination.

  1. Mr. Goschen says that while a gold currency existed on both sides of the Atlantic the actual par of exchange between New York and London was about 109. What is the explanation of this method of stating the point of equilibrium?
  2. Is Clare justified in making the general statement that “the gold-points mark the highest level to which an exchange may rise, and the lowest to which it may fall?”
  3. What effect would the current rate of interest (as e.g. in a tight money market, either in the drawing or in the accepting country,) have on the rates for sixty-day bills as compared with cash bills?
  4. Clare makes the remark that “as the rate of exchange between two countries…must be fixed by the one who draws and negotiates the bill, it follows that the exchanges between England and most other countries are controlled from the other side, and that we in London have scarcely part or say in the matter.” Is the rate then a matter of indifference to those in London?
  5. Why is it that in certain trades bills are drawn chiefly, or even exclusively, in one direction, as e.g. by New York on London and not vice versa; and how is this practice made to answer the purpose of settling payments, which have to be made in one direction as well as the other?
  6. Mr. Goschen says that the primary cause which makes England the great banking centre of the world is “the stupendous and never-ceasing exports of England, which have for their effect that every country I the world, being in constant receipt of English manufactures, is under the necessity of making remittances to pay for them, either in bullion, in produce, or in bills.”
    Compare this statement with the fact that for ten years past the imports of merchandise into England have averaged about £400,000,000 annually, and the exports from England have averaged a little under £300,000,000.
  7. Suppose the exportation of specie from the United States to be prohibited (or, as has sometimes been suggested, to be slightly hindered,) what would be the effect on rates of exchange, and on prices of goods, either domestic or foreign? Would the country be a loser or not? [See Ricardo (McCulloch’s ed.) p. 139.]
  8. State Mr. Cairnes’s general doctrine as to the movement of prices which determines the normal flow of new supplies of gold from one country to another in the process of distribution over the commercial world.
  9. Cairnes argues that, as the effect of the cheapening of gold, “each country will endure a loss;” but that in particular cases “the primary loss may…be compensated, or even converted into a positive gain.” State and discuss the reasoning on which this proposition rests.
  10. Say, in his Report on the Indemnity, says:—
    La France a, en réalité, (1) fait passer à l’étranger le plus de capitaux possible, en prenant tous les changes qu’elle pouvait acquérir sur quelque pays que ce fût, et (2) a ensuite dirigé sur l’Allemagne tout ce qu’elle avait approvisionné ailleurs.

    1. What reason was there why France should prefer the course described in (1) rather than a direct transfer to Germany?
    2. What movements of trade or capital, of any sort, made the course described in (1) possible or easy?
    3. What movements of the same nature made (2) possible, or enable Germany to absorb the capital thus turned towards her?

*  *  *  *  *  *  *

  1. On either of the following topics, give an orderly and concise statement, as complete as you can make it in thirty minutes:—
    1. Sidgwick’s criticisms on Mill’s doctrine of international trade and their validity.
    2. The supply and distribution of the new gold from the United States and Australia, 1858-70.
    3. The action of the new gold in the banking countries.
    4. The absorption of new gold by the currency of France and the foreign trade of that country.
    5. The reasons for the varying ability of India to absorb silver?

Source:  Harvard University Archives. Final examinations, 1853-2001. Box 2, Papers set for Final Examinations in Philosophy, History, Government and Law, Economics, Fine Arts, and Music in Harvard College, June 1894, pp. 44-46. Transcribed and posted earlier in Economics in the Rear-view Mirror.

____________________

1893-94
Enrollment for Economics 13.
The Development of Land Tenures and of Agrarian Conditions in Europe.

Enrollment.

[Economics] 13. Professor Ashley. – The Development of Land Tenures and of Agrarian Conditions in Europe. 1 hour.

Total 2: 1 Graduate, 1 Senior.

Source: Harvard University. Report of the President of Harvard College, 1893-94, p. 61.

Note: No printed final examination in the collection of Harvard semester examinations.

____________________

Economics 14.
Ideal Social Reconstructions
from Plato to the Present.
1893-94.

Enrollment.

[Economics] 14. Asst. Professor Cummings. — Ideal Social Reconstructions, from Plato’s Republic to the present time. 1 hour.

Total 22: 7 Graduates, 8 Seniors, 5 Juniors, 2 Sophomores.

Source: Harvard University. Report of the President of Harvard College, 1893-94, p. 61.

ECONOMICS 14.
Mid-year examination, 1893-94.

(Arrange your answers in the order of the questions. Omit one.)

  1. What is a Utopia? and what significance do you attached to the recurrence of such literature at certain historical ethics?
  2. “For judging of the importance of any thinker in the history of Economics, no matter is more important to us than the view he takes of the laboring population.” Judge Plato, More and Bacon by this standard.
  3. “Moreover, it is hardly too much to say that Plato never got to the point of having a theory of the State at all.” In the Republic “man is treated as a micropolis, and the city is the citizen writ large.” Explain and criticize.
  4. “In More’s Utopia we have a revival of the Platonic Republic with additions which make the scheme entirely modern.… The economical element in the social body receives for the first time its proper rank as of the highest moment for public welfare.” Explain. To what extent have the ideals of Utopia been realized?
  5. “Then we may say that democracy, like oligarchy, is destroyed by its insatiable craving for the object which defines to be supremely good?” What, according to the Republic are the peculiar merits and defects of the several forms of political organization? and how are these forms related in point of origin and sequence?
  6. “Sir Thomas More has been called the father of Modern Communism.” How does he compare in this respect with Plato? How far do you trace the influence of historical conditions in each case?
  7. “But in your case, it is we that have begotten you for the State as well as for yourselves, to be like leaders and kings of the hive,– better and more perfectly trained than the rest, and more capable of playing a part in both modes of life.” Criticise the method and purpose of the educational system of the Republic. How far does Plato’s argument as to the duty of public service apply to the educated man to-day?
  8. “The religious ferment produced by the Reformation movement had begun to show signs of abatement, when another movement closely connected with it made its appearance almost at the same time in England and Italy, namely, the rise of a new philosophy.” How was this new philosophy embodied in the social ideals of Bacon and of Campanella? and what is the distinguishing characteristic of it?
  9. What essential contrast between pagan and Christian ideals have you found in schemes for social regeneration?
  10. Is there any recognition of “Social Evolution” in the Utopian philosophies thus far considered?
  11. What in a word, do you regard as the chief defect of the social reconstruction suggested in turn by Plato, Lycurgus, More, Bacon and Campanella? To what main problems suggested by them have we still to seek an answer?

Source: Harvard University Archives. Harvard University, Mid-year examinations, 1852-1943. Box 3, Volume: Examination Papers, Mid-Year, 1893-94. Previously transcribed and posted in Economics in the Rear-view Mirror.

 

ECONOMICS 14.
Final examination, 1893-94.

(Arrange your answers in the order of the questions.)

  1. [“]The essential unity and continuity of the vital process which has been in progress in our civilization from the beginning is almost lost sight of. Many of the writers on social subjects at the present day are like the old school of geologists: they seem to think that progress has consisted of a series of cataclysms.” How far is this criticism true? Is the characteristic in question more or less conspicuous in earlier writers?
  2. “At the outset underneath all socialist ideals yawns the problem of population…. Under the Utopias of Socialism, one of two things must happen. Either this increase must be restricted or not. If it be not restricted, and selection is allowed to continue, then the whole foundations of such a fabric as Mr. Bellamy has constructed are bodily removed.” State carefully your reasons for agreeing or disagreeing. In which of the schemes for social reconstruction, ancient or modern, do you find any adequate recognition of the part which selection plays in progress?
  3. “If it is possible for the community to provide the capital for production without thereby doing injury to either the principle of perfect individual freedom or to that of justice, if interest can be dispensed with without introducing communistic control in its stead, then there no longer stands any positive obstacle in the way of the free social order.” Discuss the provisions by which Hertzka hopes to guaranteed this “perfect individual freedom.” Contrast him with Bellamy in this respect.
  4. “I perceive that capitalism stops the growth of wealth, not – as Marx has it – by stimulating ‘production for the market,’ but by preventing the consumption of the surplus produce; and that interest, though not unjust, will nevertheless in a condition of economic justice becomes superfluous and objectless.” Explain Hertzka’s reasoning and criticise the economic theory involved.”
  5. What is the gist of “News from Nowhere”?
  6. The condition which the social mind has reached may be tentatively described as one of realization, more or less unconscious, that religion has a definite function to perform in society, and that it is a factor of some kind in the social evolution which is in progress.” How far have you found a recognition of this factor in theories of social reconstruction?

Source: Harvard University Archives. Final Examinations, 1853-2001. (HUC 7000.28). Box 2, Papers Set for Final Examinations in Philosophy, History, Government and Law, Economics, Fine Arts, and Music in Harvard College, June 1894.

Also: Harvard University Archives. Harvard University, Examination papers, 1853-2001. Box 2, Volume: Papers Set for Final Examinations in Philosophy, History, Government and Law, Economics, Fine Arts, and Music in Harvard College, June 1894, pp. 46-47. Previously transcribed and posted in Economics in the Rear-view Mirror.

 

Source: Left-to-right: Dunbar, Taussig, Ashley. From 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. Vol II (1899), pp. 159 [Dunbar], 595 [Ashley].   Vol. III (1899), p. 99 [Taussig]