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Harvard. Exams for Political Economy Courses and Ethics of Social Questions, 1890-1891

 

With the academic year 1890-91, a new instructor joined the Harvard political economy team, William Morse Cole who co-taught Political Economy 1 with Frank Taussig and  Political Economy 8, History of Financial Legislation in the United States. Cole went on to have a successful career as professor of accounting at Harvard Business School. 

The previous year’s exams have been transcribed and posted earlier:

Harvard. Final exams in political economy and ethics of social reform, 1889-1890

_________________________

1890-1891. Philosophy 14.

Enrollment

[Philosophy] 11. Professor F. G. Peabody. — The Ethics of Social Questions. — The questions of Charity, Divorce, the Indians, Temperance, and the various phases of the Labor Question (Socialism, Communism, Arbitration, Cooperation, etc.), as questions of practical Ethics. — Lectures, essays, and practical observations. 3 hours.

Total 103: 4 Graduates, 53 Senior, 28 Juniors, 4 Sophomores, 3 Freshmen, 11 Others.

Source: Harvard University. Annual Report of the President of Harvard College 1890-1891, p. 57.

 

 

PHILOSOPHY 14.
THE ETHICS OF THE SOCIAL QUESTIONS.
Mid-year examination (1890-91)

[Omit one question.]

  1. The attitude of political economy toward the questions of social reform.
  2. Consider the possible relations in which your own life may stand to the life of society, and their ethical significance.
  3. Examine a special case of moral heroism and state what, in your opinion, was its motive.
  4. What, according to Professor Sumner, are the duties toward others of “a free man in a free democracy”? Why? And with what result, in your opinion, to society?
  5. Enumerate and illustrate some of the practical rules of good charity which issue from the philosophy of charity.
  6. The relation of the labor question in France and England to the political history of those countries.
  7. Compare the conditions of wealth and the possibilities of revolution in England and in this country.
  8. Consider Carlyle’s doctrine of the “Captain of Industry” as a solution of the modern labor question.
  9. What does Ruskin mean by: Roots of honor; veins of purple; non-competitive just exchange; ad valorem?
  10. What is there in religion which encourages the Socialist and what is there which repels him, and what relation between socialism and religion is, in your judgment, likely to be the result?

 

Source: Harvard University Archives. Harvard University, Mid-year examinations, 1852-1943. Box 2. From bound volume Examination Papers, 1890-91.

 

 

 

PHILOSOPHY 14.
THE ETHICS OF THE SOCIAL QUESTIONS.
Year-end examination (June 1891)

[Omit one question.]

  1. “All wealth is due to labor; therefore to labor all wealth is due.” What, in your opinion, is the economic importance, and the justice, of this proposition?
  2. Compare the views of the Socialist, the Individualist and the “Opportunist” as to the tendency toward State interference. What is your own view of the merits of this kind of legislation?
  3. “Well may Prince Bismarck display leanings toward State Socialism.” Why does Mr. Spencer make this remark, and with what justice?
  4. On what principle would a Professor be paid, under the Socialist programme?
  5. Consider the commercial advantages and hindrances of an establishment like the Hebden Bridge Fustian Mill.
  6. Compare the principle of profit-sharing formerly used in the American Fisheries with that represented by the firm of Billon et Isaac.
  7. Describe the general features and the main intention of the Dawes Indian Bill; and the supplementary legislation now proposed.
  8. What is meant by the “Philosophy of the Family,” and what is its relation to the modern Divorce Question?
  9. If you should enter the retail liquor business in Boston, what legal restrictions would you find hampering the freedom of your trade?
  10. Apply the doctrine of the “Social Organism” to the question of Temperance.

 

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 3.  Papers Set for Final examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1891) in bound volume Examination Papers, Mid-Year 1890-91.

_____________________________

1890-91
POLITICAL ECONOMY 1.

Enrollment.

[Political Economy] 1. Professor [Frank W.] Taussig and Mr. [William Morse] Cole. —

First half-year: —

Mill’s Principles of Political Economy. 3 hours

Second half-year: —

Division A (Theoretical): Mill’s Principles of Political Economy. — Cairnes’s Leading Principles of Political Economy. 3 hours.

Division B (Descriptive): Lectures on Finance, Labor and Capital, Coöperation. — Hadley’s Railroad Transportation. —  Laughlin’s Bimetallism. 3 hours.

Total 201:

A: 10 Seniors, 53 Juniors, 50 Sophomores, 2 Freshmen, 19 Others.
B: 12 Seniors, 31 Juniors, 15 Sophomores, 2 Freshmen, 7 Others.

Source: Harvard University. Annual Report of the President of Harvard College 1890-1891, p. 58.

 

Student notes available at the Harvard Archives

Kennedy, Frank Lowell, Notes on lectures by Frank W. Taussig and William M. Cole on Political Economy 1, 1890-1891. Harvard University Archives HUC 8890.371.1

 

1890-91.
POLITICAL ECONOMY 1.
Mid-year examination.

[Divide your time equally between the two parts of the paper.]

I.
[Omit two.]

  1. “Whether men like it or not, the unproductive expenditure of individuals will pro tanto tend to impoverish the community, and only their productive expenditure will enrich it.”
    “It would be a great error to regret the large proportion of the annual produce which in an opulent country goes to supply unproductive consumption.”
    Can you reconcile these two statements of Mill’s?
  2. “Hardly any two dealers in the same trade, even if their commodities are equally good and equally cheap, carry on their business at the same expense, or turn over their capital in the same time. That equal capitals give equal profits, as a general maxim of trade, would be as false as that equal age or size give equal bodily strength, or that equal reading or experience give equal knowledge.” Can you reconcile this statement of Mill’s with the doctrine of the tendency of profits to an equality?
  3. How far is it true that a general rise or fall in wages would not affect values?
  4. Suppose a country having a metallic currency to issue inconvertible paper to one-half the amount of the coin, and trace the effects on prices and on the circulating medium (1) in an isolated country, having no international trade; (2) in a country having international trade.
  5. On the same supposition, trace the effects, in the country having international trade, on the foreign exchanges, on the course of international trade, and on the terms of international exchange.
  6. “If consumers were to save and covert into capital more than a limited portion of their income, and were not to devote to unproductive consumption an amount of means bearing a certain ratio to the capital of the country, the extra accumulation would be merely so much waste, since there would be no market for the commodities which the capital so created would produce.” Is this true?

II.
[Answer all.]

  1. “Capital is not the result of saving; it is not an accumulation. Its nature is that it should be consumed almost as fast as it is produced. … Saving or accumulation would necessarily defeat the end of its existence. How can materials or tools be saved?” Answer the question.
  2. Explain why rent is not an element in the cost of production of the commodity which yields it.
  3. Connect the law of the increase of labor with the law of production from land.
  4. What is the effect of gratuitous education for a profession on the wages of those engaged in it?
  5. Why does the durability of the precious metals give stability to their value?
  6. What are the laws of value applicable to (1) iron ore, (2) watch-springs, (3) wool and mutton, (4) patented bicycles?
  7. How does the rate of interest bear on the price of land and of securities?

Source: Harvard University Archives. Harvard University, Mid-year examinations, 1852-1943. Box 2. From bound volume Examination Papers, 1890-91.

 

POLITICAL ECONOMY 1.
Year-end examination (June 1891)
Division A.

Arrange your answers strictly in the order of the questions.

  1. Wherein is the effect of a change in the demand for commodities on the wages-fund different (1) if competition among laborers is effective? (2) if it is not effective?
  2. On what grounds does Cairnes reach the same conclusions, as to the possible effects of Trades Unions on general wages, for England and for the United States?
  3. Examine Cairnes’s reasoning as to the possibility of maintaining the accumulation of capital in a socialist community.
  4. Why are the wages of women, according to Mill, lower than the wages of men? Accepting Mill’s explanation, what would Cairnes say as to the laws of value applicable to the exchange of the products of women’s labor with the products of men’s labor?
  5. What is the error in saying that high wages make high prices?
  6. “Gold may be cheap, and prices at the same time be low.” Explain.
  7. Is it true that the benefit of foreign trade lies in its affording an outlet for the surplus produce of the community?
  8. Suppose the people of the United States to borrow annually large sums from Europe; and suppose them also to have large interest payments to make on loans contracted in previous years; would you expect our foreign trade to show an excess of imports or of exports?
  9. Mill says that an emission of inconvertible paper money, equal in amount to the specie previously circulating, will drive out the whole of the metallic money; “that is, if paper be issued of as low a denomination as the lowest coin; if not, as much will remain as convenience requires for the smaller payments.” What light is thrown on this statement by the experience of the United States in 1862?
  10. Why did the circumstance that an exceptionally large part of the country’s business was done for cash in the period immediately after the civil war make the time favorable for a speedy contraction of the currency?
  11. Is payment for capital sunk in the soil, rent, or profit?

Division B.

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

  1. Why have pools and traffic agreements been more stable in England than in the United States?
  2. Why does a railroad charge more per ton per mile on cotton goods than on coal?
  3. “A government enterprise may be managed on any one of four principles: 1. as a tax; 2. for business profits; 3. to pay expenses; 4. for public service, without much regard to the question of expenses.” Explain, giving an example under each head.
  4. Wherein is there a resemblance between the legislation of France as to railways and as to banking?
  5. Arrange in proper order the following items of a bank account: Capital, 300; Loans, 1150; Bonds and Stocks, 50; Surplus, 85; Undivided Profits, 10; Cash, 110; Cash items, 90; Notes, 90; Real Estate, 25; Other Assets, 20; Deposits, 960.
    Do you see any reason for believing this bank to be or not to be a national bank of the United States? To be a city or a country bank?
  6. Suppose the national banks of the United States ceased to issue notes, their other operations remaining as now; how great would be the effect of the change on the circulating medium of the community? Compare the effect with that which would ensue in Germany if the note issue of the German banks were to cease.
  7. Under the national bank act, how does the action of our banks, when their reserves are suddenly lowered, differ from that of the Bank of England in like case?
  8. Wherein is the mode of dividing profits among members of the coöperative stores in England different from that of the coöperative building associations of the United States?
  9. Wherein does bimetallism as now practiced in France differ from bimetallism as it was in France in 1850? Wherein does it differ from bimetallism as it is in the United States now?
  10. Compare the legislation of Germany on coinage in 1873 with that of the United States in 1853.
  11. Mill divides commodities into three classes, according to the laws of value applicable to them. In which class would you put silver bullion?
  12. Describe carefully the act for the resumption of specie payments, stating when it was passed, when it went into effect, and how far it was successful in accomplishing the desired object.
  13. Will a general rise in wages affect values? prices? profits?

 

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 3. Papers Set for Final examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1891) in bound volume Examination Papers, 1890-92.

_____________________________

1890-91
POLITICAL ECONOMY 2.

Enrollment.

[Political Economy] 2. Professor [Frank W.] Taussig and Mr. [John Graham] Brooks. — History of Economic Theory. — Examination of selections from Leading Writers. — Socialism. 3 hours.

Total 23: 4 Graduates, 10 Seniors, 8 Juniors, 1 Other.

Source: Harvard University. Annual Report of the President of Harvard College 1890-1891, p. 58.

 

Previously Posted

https://www.irwincollier.com/harvard-history-of-economic-theory-final-exam-questions-taussig-1891-94/

Fun fact: W.E.B. Dubois was enrolled in Economics 2 in 1890/91 as a graduate student and was awarded a grade of A (one of six awarded to the twenty-two who received grades,  as recorded in Taussig’s scrapbook).

1890-91.
POLITICAL ECONOMY 2.
Mid-year examination.

[Divide your time equally between the two parts of the paper.]
[Omit one question.]

  1. It has been suggested that the real source from which wages are paid is not the product of the laborer, nor the capital of the employer, but the income of the consumer. What should you say?
  2. To which of the following cases, if to any, is the reasoning of the wages fund theory applicable? (1) The farmer tilling his own land with his own capital; (2) the fisherman working for a share of the catch; (3) the independent artisan working on his own account with borrowed capital; (4) the employer who habitually sells his product before pay-day, and pays his laborers with the proceeds.
  3. Wherein does President Walker’s view of the source from which wages are paid differ from George’s?
  4. “The extra gains which any producer or dealer obtains through superior talent in business, or superior business arrangements, are very much of a similar kind [to rent.] If all his competitors had the same advantages, and used them, the benefit would be transferred to the consumers, through the diminished value of the article; he only retains it for himself because he is able to bring his commodity to market at a lower cost, while its value is determined by a higher…. Wages and profits represent the universal elements in production, while rent may be taken to represent the differential and peculiar; any difference in favor of certain producers, or in favor of production in certain circumstances, being the source of a gain, which, though not called rent, unless paid periodically by one person to another, is governed by laws entirely the same with it.”—Mill, Political Economy, book iii., ch. v., §4.
    What has President Walker added to this in his discussion of business profits?
  5. “It is true that money does not beget money; but capital does manifestly beget capital. If a man borrows a thousand ducats and ties them up in a bag, he will not find any little ducats in the bag at the end of the year; but if he purchases with the ducats a flock of sheep, he will, with proper attention, have lambs enough at the end of the year to make a handsome interest on the loan, and make a handsome profit for himself. If the turns the ducats into corn, he will find it bringing forth, some thirty, some sixty, some an hundred fold…Very seldom does a man borrow money to use it, as money, through the term of his loan. When he does so, as brokers for example sometimes do, he may to Antonio’s question, ‘Is your gold and silver rams and ewes?’ return Shylock’s answer, ‘I cannot tell; I make it breed as fast.’”
    Discuss this explanation of interest. Whom do you suppose to be the writer of the extract?
  6. “The natural history of the notion on which it [the wages-fund doctrine] rests, is not obscure. It grew out of the conditions which existed in England during and immediately subsequent to the Napoleonic wars. Two things were then noted. First, capital had become accumulated in the island to such an extent that employers found no (financial) difficulty in paying their laborers by the month, week, or day, instead of requiring them to await the fruition of their labor in the harvested or marketed product. Second, the wages were, in fact, generally so low that they furnished no more than a bare subsistence, while the employment offered was so restricted that an increase in the number of laborers had the effect to throw some out of employment or to reduce the wages for all. Out of these things the wages-fund theory was put together.”
    Examine this account of the rise of the wages-fund doctrine.
  7. Discuss the method of reasoning followed by Adam Smith, and illustrate by his treatment of two of the following topics: (1) the causes which bring about high wages; (2) the effects on domestic industry of restraints on importation; (3) the origin and effects of the division of labor.
  8. Explain how Ricardo’s conception of wages bears on his conclusions as to the effects of taxes on wages, and as to the net income of society.
  9. What can be said in justification of the views of the writers of the mercantile school?

Source: Harvard University Archives. In Harvard University, Mid-year examinations, 1852-1943. Box 2. From bound volume Examination Papers, 1890-91.

 

Second semester taught by John Graham Brooks.

POLITICAL ECONOMY 2.
Year-end examination (June 1891)

  1. From Rousseau to the Fabians, what have been the chief historic changes in the Philosophy of Socialism?
  2. In detail, state the differences between the Marx type of Socialism and that of the Fabians.
  3. With reference to the “three rents” what are the most important objections to Socialism?
  4. What reasons can you give to show that Socialism is likely to have much further development in our society?

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 3. Papers Set for Final examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1891) in bound volume Examination Papers, 1890-92.

_____________________________

1890-91
POLITICAL ECONOMY 3.

Enrollment.

[Political Economy] 3. Mr. [John Graham] Brooks. Investigation and Discussion of Practical Economic Questions. — Social Questions. — Short theses. 1st half-year. 3 hours.

Total 10: 1 Graduate, 7 Seniors, 1 Junior, 1 Other.

Source: Harvard University. Annual Report of the President of Harvard College 1890-1891, p. 58.

 

1890-91
POLITICAL ECONOMY 3.
Mid-year examination

  1. State the general objects of the German State Insurance, with reasons why it is likely, or not likely, to reach its objects.
  2. State in detail the strong points and the weak points of Trades Unions.
  3. What is the effect of Trades Unions upon their own wages, as distinguished from wages in general?
  4. What advantages has Profit Sharing over the present forms of the wages system?
  5. Are there reasons to believe that Profit Sharing will have much larger influence in the future?
  6. With special reference to the work of the half year, what “social remedies” appear to you most promising?

Source: Harvard University Archives. In Harvard University, Mid-year examinations, 1852-1943. Box 2. From bound volume Examination Papers, 1890-91.

_____________________________

1890-91
POLITICAL ECONOMY 4.

Enrollment.

[Political Economy] 4. Professor [Charles Franklin] Dunbar. — Economic History of Europe and America since the Seven Years’ War. —Lectures and written work. 3 hours.

Total 103: 29 Seniors, 28 Juniors, 25 Sophomores, 4 Freshmen, 17 Others.

Source: Harvard University. Annual Report of the President of Harvard College 1890-1891, p. 58.

Other course material available at the Harvard Archives

Topics and references in political economy IV [1891?]. Student’s copy belonging to C. King Morrison, ’91. with manuscript notes. Harvard University Archives HUC 8890.371

Larrabee, Ralph Clinton (A.B. 1893). Notes in Political Economy 4: lectures by Prof. Dunbar, 1890-1891. Harvard University Archives HUC 8890.371.4.48

Principle text for Political Economy 4

From the prefatory note to Benjamin Rand’s (ed.) Selections illustrating economic history since the Seven Years’ War (Cambridge, MA: Waterman and Amee, 1889):

These selections have been made for use as a text-book of required reading to accompany a course of lectures on economic history given at Harvard College.

1890-91
POLITICAL ECONOMY 4.
Mid-year examination

Lay out your time carefully, reserving 15 minutes for review and correction.

A.
Give half of your time (say 80 minutes) to A, omitting one question.

  1. Make a careful statement of the leading provisions of the English navigation and colonial system.
  2. Adam Smith’s reasons for saying that the policy of Great Britain towards her colonies had, upon the whole, been less illiberal and oppressive than that of other countries towards theirs. [Rand, pp. 12-26.]
  3. Contrast the effects of the French revolutionary period upon the holding and distribution of land, in France and Germany respectively.
  4. Describe the current of opinion and the industrial conditions which made free trade inevitably the policy for England.
  5. State the reasons for the logical and political importance of the corn laws in the English free trade movement.
  6. The essential differences between the French and the Anglo-American methods of managing railway construction and ownership, and the effect and advantages of each.

B.
Give 80 minutes to B, omitting two questions.

  1. The trade between the United States and the British West Indies, before our revolution, and after.
  2. The inventions or improvements which made the development of the cotton States possible.
  3. The condition of commerce and manufactures in the United States in the two periods, 1794-1808, and 1808-1815.
  4. The successive enterprises for opening communication with the territory north of the Ohio, and their importance.
  5. The English legislation respecting cotton goods in the last century and the reasons for it.
  6. What was the effect of the Napoleonic wars upon the introduction of manufactures on the continent of Europe?
  7. The comparative state of preparation of England, France, Germany, and the United States for undertaking the modern industries when the peace of 1815 came.
  8. Give what account you can of the career and opinions of Turgot, with dates.
  9. The contributions of Stein and Hardenberg respectively to the reform in the Prussian system of land-holding.
  10. On what plan was the Zollverein organized?
  11. What are the differences in industrial characteristics which make it natural for England and France to adopt different policies as to protection and free trade?

Source: Harvard University Archives. In Harvard University, Mid-year examinations, 1852-1943. Box 2. From bound volume Examination Papers, 1890-91.

 

1890-91
POLITICAL ECONOMY 4.
Year-end examination (June 1891)

Lay out your time carefully, reserving 15 minutes for review and correction

A.
Give half of your time to A. omitting one question.

  1. The establishment of the Zollverein is spoken of [Rand, page 138] as “the first step towards what is called the Germanization of the people” and to have “prepared the way for a political nationality.” Show how it had this effect.
  2. Cairnes, in his discussion of the new gold, [Rand, page 197] shows that “a given addition to the metallic stock of Great Britain and the United States … will cause a greater expansion of the total circulation, and therefore will support a greater advance in general prices, that the same addition to the currency of … France … and that again, the effect in countries like France will be greater than in countries like India or China.” Why is this, and how much effect did this difference in sensitiveness produce in the years after 1850?
  3. Cairnes lays down [Rand, page 209] that “every country is interested in raising as rapidly as possible the prices of its productions,–in other words, in the most rapid possible depreciation in the local value of its gold.” What are the grounds for this proposition?
  4. The writer in Blackwood’s, [Rand, page 228] says that the most important point in the payment of the French indemnity is “How came it that £170,000,000 [4,250,000,000 francs] of bills could be got at all”? What is the explanation of this fact?
  5. What are the reasons for looking upon Italy as a possible serious competitor in ocean navigation, and what are her great drawbacks in such competition?

B.

  1. What are the marked differences between the great change in the production and value of the precious metals in the sixteenth century, and that in the nineteenth?
  2. Why was an additional supply of gold especially important to the world in the years 1850-60?
  3. How does the mere saving of time in transportation, or in the transmission of intelligence, produce an effect upon commerce?
  4. How far was the civil war the cause of the decline of American shipping after 1860?
  5. What reasons made the breaking out of a financial crisis in the United States in 1873 easier than usual?
  6. Why did the payment of the French indemnity disturb the financial quiet of other countries than France and Germany?
  7. What are the great cases of resumption of specie payment in the years 1875-85, and how were they brought about respectively?
  8. Why is the trade between countries so often “triangular,” and why is England so generally one of the parties concerned?
  9. How does the modern theory of the utility of colonies differ from that of a century or two ago?

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 3. Papers Set for Final examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1891) in bound volume Examination Papers, 1890-92.

_____________________________

1890-91
POLITICAL ECONOMY 6.

Enrollment.

[Political Economy] 6. Professor [Frank W.] Taussig. — History of Tariff Legislation in the United States. 2 hours. 2d half-year

Total 43: 1 Graduate, 28 Seniors, 12 Juniors, 2 Others.

Source: Harvard University. Annual Report of the President of Harvard College 1890-1891, p. 58.

 

 

1890-91
POLITICAL ECONOMY 6.
Year-end examination (June 1891)

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

  1. Explain wherein France and the United States were in similar positions, as regards customs policy, in 1814-15; and state briefly the legislation to which these situations led in the two countries.
  2. What was the argument, discussed in Hamilton’s Report on Manufactures, which rested on the supposed exceptions productiveness of agriculture? What was Hamilton’s answer? What is the sound view?
  3. How did Gallatin propose in 1831 to fix customs duties without regard to their protective effect? Walker in 1845?
  4. Was there any ground in 1832 for saying that the duties on imports were equivalent to duties on exports? Is there now?
  5. How did the general fall in prices after 1819 affect the growth of manufactures in the United States?
  6. “The climate, soil, and conditions generally in the Northwest, are very favorable to the cultivation of flax fibre as well as of the seed. After a short experience as to the primary manipulation and handling of the flax fibre, our farmers would produce flax which would compare favorably with the best varieties of the fibre. It seems strange that a practical people like ourselves should for years have been satisfied to cultivate seed for flax at a value of about $15 per acre, and at the same time allow 600 pounds of flax fibre per acre to rot on the ground, this fibre having a value, after being manipulated, of $186 per ton.”
    Can you explain the anomaly?
  7. Describe the process by which the duties on woollen cloths, as they stand in the act of 1890, were arrived at.
  8. What ground is there for saying that the protective movement in the United States is part of a general reaction towards protection which has appeared in most civilized countries in recent years?
  9. It has been said that the tariff act of 1789 began the protective policy of the United States; that the act of 1816 was the first giving serious protection; that the act of 1824 was the first strictly protective act. Which statement, if any, do you think true?
  10. Which of the important tariff acts between 1835 and 1859 were passed quite without regard to financial considerations?
  11. What does the continued importation of clothing wool indicate as to the effect of the duty on the domestic price? of pig iron? of silks?

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 3. Papers Set for Final examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1891) in bound volume Examination Papers, 1890-92.

_____________________________

1890-91
POLITICAL ECONOMY 7.

Enrollment.

[Political Economy] 7. Professor [Charles Franklin] Dunbar. — Public Finance and Taxation. — Cohn’s Finanzwissenschaft. 3 hours.

Total 7: 2 Graduates, 4 Seniors, 1 Junior.

Source: Harvard University. Annual Report of the President of Harvard College 1890-1891, p. 58.

 

1890-91
POLITICAL ECONOMY 7.
Year-end examination (June 1891)

It is recommended that at least a third of the time be given to B.

A.

  1. Accepting the usual reasoning that a tax under some circumstances, by diminishing the income from property, diminishes its selling value, and so ceases to be felt by subsequent purchasers, should you say,—
    1. That the French impôt foncier is a tax on present landholders?
    2. That the English income-tax under Schedule A. is a tax on present landholders?
      The reason for the difference, if any exists.
  2. What is your final conclusion as to the sale of bonds or annuities at a discount, — is it defensible or not, and on what grounds?
  3. Explain the English method of using terminable annuities for the reduction of the public debt, as in 1867 and 1883, and discuss its advantages and drawbacks.
  4. “The administrator of local finances is permitted to found a sinking-fund at the time of issuing bonds, a permission, it will be remembered, contrary to sound rules of national financiering.”
    Does the distinction here made between local and national finances give solid ground for difference of treatment? Are the propositions as to the propriety of establishing sinking-funds in the two cases respectively tenable?
  5. Say remarks that the French government, in providing for the indemnity, bought any kind of foreign bills of exchange, “prenant tous les changes qu’elle pouvait acquérir sur quelque pay que ce fût.” How did this purchase of a bill, say upon Russia, facilitate the payment of the indemnity any more than the purchase of a bill upon Marseilles would have done, seeing that in either case the government had to collect the proceeds in order to use them?

B.

  1. In 1872 Herr Bamberger, in his pamphlet die Fünf Milliarden, regretted that Germany had not been allowed more time to absorb the indemnity, so as to avoid the risk of over-stimulated enterprise, rise of prices, and speculation.
    Discuss the probably effects, in Germany or elsewhere, (1) of longer time allowed to France; (2) of more cautious introduction of the wealth into Germany, effected

    1. By longer deposit (say) in London,
    2. By payment in securities, to be sold by Germany by degrees.

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 3. Papers Set for Final examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1891) in bound volume Examination Papers, 1890-92.

_____________________________

1890-91
POLITICAL ECONOMY 8.

Enrollment.

[Political Economy] 8. Mr. [William Morse] Cole. — History of Financial Legislation in the United States. 2 hours. 1st half-year.

Total 46: 1 Graduate, 29 Seniors, 13 Juniors, 3 Others.

Source: Harvard University. Annual Report of the President of Harvard College 1890-1891, p. 58.

 

1890-91
POLITICAL ECONOMY 8.
Mid-year examination

I.

  1. “That the public credit was much better during the Civil War than during the War of 1812 is proved by the fact that during the former war the bulk of the loans were sold at par, whereas during the latter the larger part were sold below par.”
    Comment on this statement.
  2. Under what authority does the Secretary of the Treasury purchase bonds in the market? Why does he not redeem them at par?
  3. Explain: “Five-twenties”; “Seven-thirties”; and tell why they were made seven-thirties; “Deferred sixes,” “5% redemption fund.”
  4. When were the first legal tenders under the present constitution authorized?
  5. What have been the express legal exemptions of government obligations from taxation since the outbrake of the Civil War?
  6. In what different capacities was each of the following men connected with the finances of the nation: Hugh McCulloch, Levi Woodbury, William Pitt Fessenden, John Tyler?

II.
(Omit two.)

1, 2. [Counts as two questions.] Compare the causes of the suspensions of 1814, 1837, and 1861.

3, 4. [Counts as two.] Mention the different systems which have been in vogue since 1789 for caring for public funds, and tell why each change was made.

    1. It was said that the bill which finally became the act for resumption in 1875 really provided for nothing in particular, and therefore ought not to be put upon the statute book. Did the provisions of the bill warrant the remark? Did subsequent history justify the remark?
    2. In what way were the French Spoliation Claims connected with the Second-Bank Struggle?
    3. Hamilton wished to have a system of internal taxation in working order as a resource in case of emergency. Does history throw any light upon the wisdom or folly of such a policy?
    4. What were the causes of Gallatin’s retirement from the Treasury?
    5. What history would you cite as an argument upon a proposition to replace bonds exempt from all taxation by bonds taxed to a moderate extent, and to distribute the receipts from the tax among the States according to the federal ratio?
    6. In a speech on the refunding bill it was said that the government made no threat, but merely promised certain privileges to those who presented bonds to be refunded at a lower rate. “No one proposes…the alternative adopted by our own Government under Hamilton’s plan of reducing the interest.”
      Is this implication regarding Hamilton’s funding justified by the facts?

11, 12. [Counts as two.] Mention as many as possible of the kinds of obligations which have been contracted by the government; i.e. character of obligation (bond or what), length of time to run, and rate of interest. Give one example under each kind,—giving period of issue, but not necessarily the exact date.

Source: Harvard University Archives. In Harvard University, Mid-year examinations, 1852-1943. Box 2. From bound volume Examination Papers, 1890-91.

_____________________________

1890-91
POLITICAL ECONOMY 9.

Enrollment.

[Political Economy] 9. Professor [Frank W.] Taussig. — Railway Transportation. —Lectures and written work. 3 hours. 2d half-year

Total 20: 14 Seniors, 4 Juniors, 2 Others.

Source: Harvard University. Annual Report of the President of Harvard College 1890-1891, p. 58.

 

1890-91.
POLITICAL ECONOMY 9.
Year-end examination (June 1891)

[Answer all the questions, and arrange your answers strictly in the order of the questions.]

  1. Can it be fairly said that the early experience of the States of the Union supplies strong arguments against State ownership of railways? Can it be fairly said of the experience of France since 1878?
  2. State the salient events in the history of the federal land grants to railways.
  3. How do you explain the rapidity with which the Union Pacific and Central Pacific railroads were completed?
  4. Wherein did the so-called Granger legislation on railway rates resemble the “natural” system advocated in Germany after 1871? Wherein did it differ from it?
  5. Sketch the history and machinery of the Southern Railway and Steamship Association.
  6. Explain the difference in the working of the Trunk Line Association before and after the passage of the Interstate Commerce Act.
  7. What ground is there for saying that the prohibition of pooling in the Interstate Commerce Act is inconsistent with its prohibition of discrimination between individuals?
  8. Suppose a railway to be built and used exclusively for coal traffic; would its rates be arranged on a plan essentially different from that in use with ordinary railways, having a varied traffic?
  9. It has been said that the principle of tolls, or rates based on cost of service, makes it necessary that each item of business should pay its share of the fixed charges. Why, or why not?
  10. Sketch the history of government management of railways in Italy.
  11. “Property has reached an ideal perfection. It is felt and treated as the national lifeblood. The rights of property nothing but felony and treason can override. The house is a castle which the King cannot enter. The Bank is a strong box to which the King has no key. Whatever surly sweetness possession can give is tasted in England to the dregs. Vested rights are awful things, and absolute possession gives the smallest freeholder identity of interest with the duke.”—Emerson, English Traits.
    Wherein does the trait here described make the railroad situation in England different from that in the United States?

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 3. Papers Set for Final examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1891) in bound volume Examination Papers, 1890-92.

Categories
Economists Harvard Policy

Harvard. Paul Volcker’s A.M. Transcript for Graduate School of Public Administration, 1949-1951

 

Paul Volcker’s entry into Economics in the Rear-view Mirror was celebrated as the 45th member of the tongue-in-cheek page “Economists Wearing Bowties”.  

But seriously now, Paul Volcker’s biographer, William L. Silver (Volcker The Triumph of Persistence, New York: Bloomsbury Press, 2012), included an image of a hand-written copy of Paul Volcker’s Harvard University A.M. course transcript that I  have transcribed into a digital artifact for this post. Two Volcker quotes from the book have been added to show the power of academic scribblers from a few years back (and not necessarily in a good way) to provoke frenzy in the minds of those in authority. 

Incidentally, for a couple of the courses Economics in the Rear-view Mirror already provides copies of the course outlines, reading lists, and final exams (see below for links).

________________________

Too late for a tuition refund
(from Princeton)

“I don’t think I heard the name of John Maynard Keynes until I got to Harvard. At Princeton they taught the famous quantity theory of money as though they heard it directly from David Hume in 1750….Friedrich Lutz was about forty at the time, but from the perspective of an eighteen-year-old, he might as well have been two hundred and forty. He taught us that too much money created inflation.”

Source: William L. Silber, Volcker The Triumph of Persistence, New York: Bloomsbury Press, 2012, pp. 33-34.

________________________

But what if your detector is defective?

“Every man should have a built-in automatic crap detector operating inside him. It also should have a manual drill and a crank handle in case the machine breaks down.”

Ernest Hemingway 1954

*  *  *  *  *  *  *  *  *  *  *

Volcker recalling Roosa’s arranging a presidential appointment for him as deputy undersecretary of the treasury for monetary affairs so that he could serve as Treasury’s point man in confronting the [Kennedy Administration’s] CEA:

“It all sounded too easy. Push this button twice and out pops full employment. Equations do not work as well on people as they do on rocket. I remember sitting in class at Harvard listening to [the fiscal policy expert] Arthur Smithies say, ‘A little inflation is good for the economy.’ And all I can remember after that was a word flashing in my brain like a yellow caution sign: ‘Bullshit.’ I’m not sure exactly where that came from…but it’s a thought that never left me.”

Source: “William L. Silber, Volcker The Triumph of Persistence, New York: Bloomsbury Press, 2012, pp. 33-34.

________________________

Handwritten copy of Volcker’s
Harvard transcript:

Harvard University. Graduate School of Public Administration
Littauer Center, Cambridge, Mass.

July 26, 1951.

Transcript of Harvard Record of Paul Adolph Volcker

Course

 Grade
½ Course

Full Course
1949-50

Ec. 201

 Economic Theory A
Ec. 241 Principles of Money and Banking

A-

Ec. 243a

 International Trade A

Gov. 250a

Govt. Admin. & Public Policy

A

Ec. 243b

 International Trade A

Gov. 250b

 Govt. Admin. & Public Policy A-
1950-51

Gov. 106b

 History of Political Thought A
Ec 202 Advanced Economic Theory

Excused

Ec. 251

 Public Finance A
Ec. 350 Reading & Research/half
Prof. Hansen

Satisfactory

Gov. 300

 Reading & Research/half
Prof. Fainsod		 Satisfactory

 
Gov. 300 Reading & Research/half
Prof. Neumanns

Satisfactory

Degree awarded: A.M., Harvard Univ., June 1951

The established grades are A, B, C, D, and E.

A grade of A, B, Credit, Satisfactory or Excused indicates that the course was passed with distinction. Only courses passed with distinction may be credited toward a higher degree.

Robert G. McCloskey
Secretary

Source: Image from William L. Silber, Volcker — The Triumph of Persistence, New York: Bloomsbury Press, 2012, p. 308.

________________________

Volcker’s Harvard Course Instructors

1949-50

Ec 201. Economic Theory. Professor Chamberlin.

Ec 241. Principles of Money and Banking. Professor J. H. Williams (Fall); Professor Hansen (Spring).

Ec 243a. International Trade. Professor Haberler.

Ec 243b. International Economic Policy. Professors Haberler and Smithies.

Gov 250a. Government Administration and Policy. Professor Fainsod.

Gov 250b. Government Administration and Policy.  Professor Gaus.

1950-51

Ec 251. Public Finance. Professor Burbank.

Gov 106b. History of Political Thought II. Probably Prof. Friedrichs.

Source: Harvard University. Report of the President of Harvard College, 1949-1950. [Note: course enrollment information was not provided in the President’s Report for 1950-51.]

 

Image Source: 2020 Princeton Reunions Virtual Talk: Honoring the Remarkable Legacy of Paul Volcker ’49.

Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. International Trade Theory and Policy. Haberler, 1952-1953

 

Gottfried Haberler was a teaching triple threat in the Harvard economics department in his heyday: he covered courses in theory, business cycles, and international trade. Here’s a list of posts at Economics in the Rear-view Mirror using the “haberler” tag.

This post provides the course outlines and final exams for Haberler’s two term graduate sequence in international trade (& finance) and policy from 1952-53.

_____________________

Course Announcement

Economics 243a. International Trade

Half-course (fall term). Mon., Wed., and (at the pleasure of the instructor) Fri., at 12. Professor Haberler.

Economics 243b. International Economic Policy

Half-course (spring term). Mon., Wed., and (at the pleasure of the instructor) Fri., at 12. Professor Haberler.

 Properly qualified undergraduates will be admitted to this course.

Source: Harvard University Archives. Courses of Instruction, Box 6,  Announcement of the Courses of Instruction offered by the Faculty of Arts and Sciences for the Academic Year 1952-53, p. 104.

_____________________

Course Enrollment

 Note: the 1952-1953 Report of the President of Harvard College does not provide course enrollment statistics.

_____________________

Syllabus, Fall 1952-53

Economics 243a
Professor Haberler, Fall Term, 1952-53
International Trade — Theory

The first semester of the course will be devoted to the Theory of International Trade. The first topic will be the balance of payments mechanism, the determinants of foreign exchange rates. Later the so-called “pure theory” of international trade will be discussed, including the welfare aspects (theory of international economic policy.)

The subject of the second term will be a brief historical sketch of the evolution of commercial policy from the late eighteenth century to the present time and selected topics in the field of international economic policy with greater emphasis than in the first term on historical, institutional, political, and administrative aspects of the various problems.

Outline for First Half-Year

  1. International Trade and National Income
    Various relations between the two
    The importance of trade for various countries and its measures
  2. International Trade in the National Accounts
    International transactions of the national economic budget
    The balance of payments, various forms of presentation and interpretation
    Balance of international indebtedness
  3. Foreign Exchanges and the Balance of Payments Mechanism
    The foreign exchange market
    Demand and supply for exports and imports and for foreign means of payments
    Changes in the exchange rate, the balance of payments and the terms of trade
    Price effects and income effects
    The foreign trade multiplier
    The transfer problem
  4. Theory of International Division of Labor
    The theory of comparative cost
    Modern developments of the theory of comparative cost
    Marshallian theory of reciprocal demand and supply curves
    Ohlin’s general equilibrium theory
  5. Welfare Implications of International Trade
    Factor prices and international trade
    Income distribution and international trade
    Theory of protection and tariffs
    Monopoly and monopolistic competition in international trade

Reading Assignments and Suggestions

  1. General

Every student should have worked through one of the existing general texts or monographs:

Brown, A. C., Industrialization and Trade, 1943.
Ellsworth, International Economics, 1938.
Ellsworth, The International Economy, 1950.
(The first book of Ellsworth is shorter and theoretical; the second much longer and historical.)
Enke and Salera, International Economics.
Haberler, Theory of International Trade.
Harrod, International Economics (3rd edition, 1939).
Meade and Hitch, Introduction to Economic Analysis and Policy, (Part V).
Marsh, World Trade and Investment.
Taussig, International Trade.
Whale, International Trade.

A short discussion of recent developments will be found in Metzler, “The Theory of International Trade,” Chapter 6 in Survey of Contemporary Economics.

There are two very useful Reading Volumes:

Readings in the Theory of International Trade (edited by H. S. Ellis and Lloyd Metzler), 1949, and
Selected Readings in International Trade and Tariff Problems (ed. Taussig), 1921.

  1. Assignments and Suggestions to Subjects Listed Above (in addition to relevant chapters in general texts).
    1. There is hardly any specific reading on this subject. But every student should have some idea of basic facts and orders of magnitude.
      The Post-War Foreign Economic Policy of the United States. 6th Report of the House Special Committee on Post-War Economic Policy and Planning. House Report No. 541. Washington, 1945. (This report was written by Lloyd Metzler.)
      The United States in the World Economy, U. S. Department of Commerce, 1943.
      Buchanan, and Lutz, Rebuilding the World Economy, 1947.
      A. J. Brown, Applied Economics, 1948; Chapter VI:
      Readings, Chapters 21 and 22, by D. H. Robertson and J. Viner.
    2. Every student should study the U.S. balance of payments and that of one or two other countries in order to get a feeling of the magnitudes involved and to familiarize himself with the methods of presentation which vary not only from country to country but often also from one year to the other for the same country.
      Balance of Payments Yearbook (I.M.F.)
      The United States in the World Economy, 1943.
      The Balance of International Payments of the U.S., 1946-48 (1950).
      Hicks, The Social Framework of the American Economy, Chapter XII, “Foreign Payments and the National Income” (a theoretical discussion).
      Marsh, World Trade and Investment, Chapters 9, 10, 11, 12.
    3. In addition to relevant chapters in general texts, see the following:
      Haberler, “The Market for Foreign Exchange and the Stability of the Balance of Payments”, Kyklos, Vol. III, 1949.
      Harris (ed.), Foreign Economic Policy for the U.S., Part V, Chs. 20, 21 22.
      Harris (ed.), The New Economics, Part V, especially essays by Bloomfield and Nurkse.
      Iversen, International Capital Movements, 1935.
      Keynes and Ohlin on German Reparations in Economic Journal, 1929; and Readings, Chapters 6 and 7.
      Machlup, International Trade and the National Income Multiplier, 1943.
      Machlup, “The Theory of Foreign Exchanges,” Economica, 1939 (two articles), Readings, Chapter 5.
      Meade, J. E., The Balance of Payments, 1951.
      Metzler, op. cit.
      Nurkse, R., International Currency Experience (League of Nations, 1944).
      Pigou, “The Foreign Exchanges,” Quarterly Journal of Economics, November, 1922, reprinted in Essays in Applied Economics (1927).
      Robinson, J., “Beggar-My-Neighbor Remedies for Unemployment”, Readings, Chapter 17.
      Robinson, J., “Foreign Exchanges,” Essays on the Theory of Employment(1st ed., 1938; 2nd ed., 1947), Part III; reprinted in Readings, Ch. 4.
      Williams, Post-War Monetary Plans and Other Essays (3rd, 1947).
    4. and 5. In addition to general texts, see:
      Edgeworth, Papers Relating to Political economy, Vol. II, p. 3-60.
      Ellsworth, “A Comparison of International Trade Theories,”American Economic Review, June, 1940.
      Haberler, “Some Problems in the Pure Theory of International Trade”, Economic Journal, June, 1950.
      Leontief, “The Use of Indifference Curves in the Analysis of Foreign Trade,” Quarterly Journal of Economics, May, 1933; Readings, Ch. 10.
      Mill, Principles (relevant chapters reprinted in Selected Readings).
      Ohlin,  cit. Parts I, II, and possibly III.
      Readings, Chs. 12, 13, 15, by J. H. Williams, E. Heckscher, and W. Stolper and P. Samuelson.
      Ricardo,  Principles, (relevant chapters reprinted in Selected Readings).
      Robinson, J., “The Pure Theory of International Trade”, Review of Economic Studies, Vol. XIV, 1946-47.
      Taussig, International Trade.
      Viner, Studies in the Theory of International Trade (last two chapters).

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003, Box 5, Folder “Economics, 1952-1953 (2 of 2)”.

_____________________

1952-1953
HARVARD UNIVERSITY
ECONOMICS 243a
[Final exam. January 1953]

Answer 5 questions. Write legibly.

  1. Suppose the international transactions of a country are as follows (in hundred million dollars):
Commodity exports 18
Commodity imports 20
Net tourist receipts 1
Other services exported 1
Gold exports 1
Debt to IMF repaid 1
New long-term securities sold abroad 1
Long-term securities redeemed ½
Short-term balances accumulated abroad 1
Marshall aid received 1

Write down the balance of payments, inserting if necessary an “errors and omissions” item.

Discuss whether the balance of payments shows a deficit or surplus, giving reasons for your answer. If you like, state alternative criteria.

  1. How does depreciation influence the balance of payments and the terms of trade? Discuss question in terms of relevant elasticities.
  2. Balance of payments adjustments in the pre-World War I era were often so rapid that they surprised the classical theorists. Show how “income effects” may help to explain these phenomena.
  3. List some arguments for protection and examine one of these in some detail. (Append a graphical analysis if possible).
  4. Compare the classical theory of comparative cost and Ohlin’s general equilibrium theory that is based on the relative scarcity of factors of production.
  5. Discuss J. H. Williams’ strictures against the classical theory and compare them with those of Ohlin.
  6. Is it possible, and if so under what conditions, that international trade changes the income distribution against a major factor of production, say, labor? Discuss policy implications.
  7. Show graphically how reciprocal demand curves can be used to analyze changes in the terms of trade that result from the imposition of tariffs on imports or exports.

Source: Harvard University Archives. Harvard University, Final examinations 1853-2001. (HUC 7000.28, vol. 96 [Social Sciences]). Papers Printed for Final Examinations [in] History, History of Religions, Government, Economics,…” January 1953.

_____________________

Syllabus, Spring Term, 1952-53

Harvard University
Department of Economics
Economics 243b
International Economic Policy

  1. Historical Introduction
    Commercial Policy of the major countries from the beginning of the 19th century until 1914.

Great Britain
France
Germany
United States
Other Countries

The Inter-war period and postwar developments.

Modern methods of trade control
Quantitative controls

Quotas
Exchange control

Other methods and controls.

  1. Free Trade and Protection: Theoretical Economics and Practical Social Policies

The case for free trade and the free trade movement

Arguments for protection

“Non-economic” arguments
Unemployment
Balance of Payments

“Dollar shortage”

Infant industry argument and development of underdeveloped countries
Terms of Trade
International trade under planning

  1. Current Issues in Trade Policy
    Liberalization of trade

Universal vs. regional approach
Most-favored-nation principle and discrimination
Currency convertibility
Customs Union

READING SUGGESTIONS

  1. General

Most treatises on International Trade discuss policy questions.

Ellsworth: The International Economy
D. March: World Trade and Investment
Haberler: Theory of International Trade
J. Viner: International Economics
J. Viner: International Trade and Economic Development
Readings in the Theory of International Trade (Blakiston)
S. E. Harris (editor): Foreign Economic Policy of the U.S. (Harvard, 1946)
N. Buchanan and F. Lutz: Rebuilding the World Economy
H. S. Ellis: The Economics of Freedom. The Progress and Future of Aid to Europe (Harper 1950)
Selected Readings in International Trade and Tariff Problems, (ed. Taussig)
J. H. Williams: Economic Stability in a Changing World. 1953.
J. H. Williams: Stamp Lecture (Harvard University Press)

  1. Special Subjects
    1. History of Commercial Policy
      Condliffe: The Commerce of Nations
      Ellsworth: The International Economy [stresses the historical approach]
      F. W. Taussig: U.S. Tariff History
      F. W. Taussig: Some Aspects of the Tariff Question
      P. Ashley: Modern Tariff History. 1904
      R. F. Mikesell: United States Economic Policy and International Relations (Economic Handbook Series, 1952)
      Dictionary of Tariff Information (U. S. Tariff Commission, 1924)
      H. Heuser: Control of International Trade. 1939
      Margaret Gordon: Barriers to World Trade. 1941
    2. Free Trade and Protection
      [See General Treatises mentioned above]
      R. Triffin: “National Central Banking and the International Economy,” Review of Economic Studies, 1946-47. Also, in same issue, three comments by Balogh, Henderson, and Harrod
      J. R. Hicks: Free Trade and Modern Economics (Manchester Statistical Society, 1951)
      Selected Readings in International Trade and Tariff Problems (ed. Taussig, 1921) (contains useful excerpts from A. Smith, J. S. Mill, F. List, etc.)
      A. Henderson, “The Restriction of Foreign Trade,” in The Manchester School January 1949
    3. Reading will be announced later.

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003, Box 5, Folder “Economics, 1952-1953 (2 of 2)”.

_____________________

1952-1953
HARVARD UNIVERSITY
ECONOMICS 243b
[Final Exam. May 1953]

Answer five questions. Write legibly!

  1. Discuss the customs union issue and evaluate the chances of this approach to furthering the international division of labor.
  2. List at least four concepts of “terms of trade” and discuss whether or not these concepts are “operational” (statistically observable). Also discuss the concept of “terms of trade” implied in the Marshallian reciprocal demand curve analysis.
  3. Cite some methods of discrimination and examine the argument that discriminatory controls are less destructive of trade and therefore more desirable than non-discriminatory controls.
  4. Is the phrase “dollar shortage” absurd? Discuss possible causes and cures of “dollar shortage” consistent with your evaluation of why a “dollar shortage “may exist.
  5. How do payments unions or clearing unions operate? What are the main problems and difficulties? State arguments for and against such arrangements.
  6. What is meant by “convertibility” and why is it often held to be of paramount importance?
  7. Tariffs, Quotas, and Exchange Control are alternative methods of controlling imports. Compare their modes of operation and discuss their comparative advantages and disadvantages.

Source: Harvard University Archives. Harvard University, Final examinations 1853-2001. (HUC 7000.28, vol. 99 [Social Sciences]). Papers Printed for Final Examinations [in] History, History of Religions, Government, Economics,…” June 1953.

Image: Radcliffe Archives. Portrait of Gottfried Haberler. (1965).

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Brown Columbia Curriculum Harvard Pedagogy Teaching Undergraduate

Harvard. Argument for more political economy in a liberal education. President Eliot, 1884

Harvard course offerings in political economy were increased significantly in the 1883-84 academic year. This expansion was consistent with President Charles W. Eliot’s vision of a Harvard education fit for the twentieth century as seen in the following paragraphs from his 1884 commencement speech at Johns Hopkins University.

The state of instruction in political economy at Harvard ca. 1870 was mentioned in his book Harvard Memories, pp. 70-71.

_________________________

Excerpt from “What is a Liberal Education?”

Commencement speech at Johns Hopkins University
22. February 1884 by Charles W. Eliot

[…] Closely allied to the study of history is the study of the new science called political economy, or public economics. I say the new science, because Smith’s “Wealth of Nations” was not published until 1776; Malthus’s “Essay on the Principle of Population” appeared only in 1798; and Ricardo’s “Political Economy and Taxation,” in 1817. The subject is related to history, inasmuch as it gleans its most important facts by the study of the institutions and industrial and social conditions of the past; it is the science of wealth in so far as it deals with the methods by which private or national wealth is accumulated, protected, enjoyed, and distributed; and it is connected with ethics in that it deals with social theories and the moral effects of economic conditions. In some of its aspects it were better called the science of the health of nations; for its results show how nations might happily grow and live in conformity with physical and moral laws. It is by far the most complex and difficult of the sciences of which modern education has to take account, and therefore should not be introduced too early into the course of study for the degree of Bachelor of Arts; but when it is introduced, enough of it should be offered to the student to enable him to get more than a smattering.

When we consider how formidable are the industrial, social, and political problems with which the next generations must grapple, — when we observe how inequalities of condition increase, notwithstanding the general acceptance of theories of equality; how population irresistibly tends to huge agglomerations, in spite of demonstrations that such agglomerations are physically and morally unhealthy; how the universal thirst for the enjoyments of life grows hotter and hotter, and is not assuaged; how the relations of government to society become constantly more and more complicated, while the governing capacity of men does not seem to increase proportionally; and how free institutions commit to masses of men the determination of public policy in regard to economic problems of immense difficulty, such as the problems concerning tariffs, banking, currency, the domestic carrying trade, foreign commerce, and the incidence of taxes, — we can hardly fail to appreciate the importance of offering to large numbers of American students ample facilities for learning all that is known of economic science.

How does the ordinary provision made in our colleges for the study of political economy meet this need of students and of the community? That I may not understate this provision, I will describe the provisions made at Columbia College, an institution which is said to be the richest of our colleges, and at Brown University, one of the most substantial of the New England colleges. At Columbia, Juniors must attend two exercises a week in political economy for half the year, and Seniors may elect that subject for two hours a week throughout the year. At Brown, Juniors may elect political economy two hours a week for half the year, and Seniors have a like privilege. The provision of instruction in Greek at Brown is five and a half times as much as the provision in political economy, and seven elevenths of the Greek is required of all students, besides the Greek which was required at school; but none of the political economy is required. Columbia College makes a further provision of instruction in history, law, and political science for students who are able to devote either one or two years to these subjects after taking the degree of Bachelor of Arts, or who are willing to procure one year’s instruction in these subjects by accepting the degree of Bachelor of Philosophy instead of the degree of Bachelor of Arts — a very high price to pay for this one year’s privilege. If this is the state of things in two leading Eastern colleges with regard to instruction in political economy, what should we find to be the average provision in American colleges? We should find it poor in quality and insignificant in amount. In view of this comparative neglect of a subject all-important to our own generation and to those which are to follow, one is tempted to join in the impatient cry, Are our young men being educated for the work of the twentieth century or of the seventeenth? There can be no pretense that political economy is an easy subject, or that it affords no mental discipline. Indeed, it requires such exactness of statement, such accurate weighing of premises, and such closeness of reasoning, that many young men of twenty, who have been disciplined by the study of Greek, Latin, and mathematics for six or eight years, find that it tasks their utmost powers. Neither can it be justly called a material or utilitarian subject; for it is full of grave moral problems, and deals with many questions of public honor and duty.

Source: Charles W. Eliot, “What is a Liberal Education”, Commencement address read 22 February 1884 at Johns Hopkins University, reprinted in his Educational Reform, Essays and Addresses. New York: Century (1901), pp. 106-109.

Image Source: Harvard University Archives. Hollis Image Collection. President Charles W. Eliot.

 

 

Categories
Economists Harvard Teaching Undergraduate

Harvard. Political Economy à la Francis Bowen, 1870

From time to time one digs up a nugget in the secondary literature that deserves its own post. Harvard President Charles W. Eliot (from 1869 to 1909), an advocate of putting more political economy into the curriculum, trash talks the quality of economics instruction when he took office.

Here two textbooks that had been inflicted upon Harvard College students in the pre-Dunbar days.

Francis Bowen (1856). The Principles of Political Economy Applied to the Condition, the Resources, and the Institutions of the American People. Boston: Little, Brown, and Company, 1856.

Francis Bowen (1870). American Political Economy, including Strictures on the Management of the Currency and the Finances since 1861. New York: Charles Scribner’s Sons.

________________________

Harvard’s retired president,
Charles W. Eliot, looking back at economics instruction à la Bowen

In respect to the teaching of political economy, or economics, I can perhaps give you some notion of the great change which has taken place since 1869 by describing the work done by Professor Francis Bowen, the only Harvard professor who then dealt at all with the subject of political economy. He gave only about a quarter of his time to that subject, because he had so many other subjects to deal with. His idea of teaching political economy was to write an elementary book on the subject, and to require the senior class — it was a required subject of the senior year — to read that book. He gave no lectures; he sometimes commented upon those pages of the book which had been assigned as the lesson of the day, to be repeated in the recitation room by those students who had studied the lesson. It is a long way from that condition of things to the present organization of the Department of Economics.

Source:  Charles William Eliot (1923), Harvard Memories. Cambridge, Mass.: Harvard University Press, pp. 70-71.

Image Source: Harvard University. Hollis Images. Portrait (1891) of Francis Bowen by Edwin Tryon Billings.

 

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Chicago Funny Business Harvard M.I.T. Princeton

M.I.T. Faculty Skit, Playing Monopoly at Lunch, 1986

 

It has been a while since I have added an artifact to the MIT economics skits wing of the Funny Business Archives here at Economics in the Rear-view Mirror. Apparently the following script was a, if not the sole, late-20th century MIT faculty skit not written by Robert Solow. I can believe that. In any event, today’s post is further grist to the mill for social historians of economics.

Again a grateful tip of the hat to Roger Backhouse is in order.

__________________

1986 FACULTY SKIT

(Skit opens with Dornbusch, Fischer, Diamond, Eckaus and McFadden seated around MONOPOLY board. Farber is standing alongside, watching the game. Fisher and Hausman are in the wings to make walk-on appearances).

ANNOUNCER: One of the most important unwritten rules in the Economics Department is that no one but Bob Solow writes the skit. This year, Bob reportedly outdid himself and wrote a sitcom in which Bob Lucas is struck by a blinding light while driving to work and transformed into a neo-Keynesian. The skit, titled “I’m OK, You’re OK,” follows Lucas’ attempts to explain why he is estimating Phillips curves to Lars Hansen and Tom Sargent.

Unfortunately, Bob is unable to be with us tonight, since he is delivering the presidential address to the Eastern Economic Association in Philadelphia. When we opened the envelope marked “SKIT” which Bob left for us, we were surprised to discover only a copy of his presidential address. We suspect he had a somewhat bigger surprise when he opened his envelope in Philadelphia. [Address published as “What is a Nice Girl Like You Doing in a Place Like This? Macroeconomics after Fifty Years” Eastern Economic Journal, July-September 1986]

We were of course scared skitless when we realized our predicament, and we were tempted to re-run some of the great Solow skits of the past. There was the 1974 Watergate Skit, in which Paul Colson Joskow testifies to Senator Sam Peltzman that he would run over his grandmother to get a t-statistic above two. There was the 1978 Star Wars skit, in which Milton Vader and his minions capture the wookie Jerrybaca and hold him captive in the Chicago Money Workshop. And in the incredible 1973 MASH skit, Hawkeye Hall and Trapper Jerry Hausman find Radar Diamond and Hot Lips Friedlaender cavorting in the Chairman’s office. (If that doesn’t give Solow Rational expectations, what does?)

We guessed that you had all seen these re-runs on late-nite channel 56, however, and therefore decided to try something new and provide a partial answer to the age-old question: What Really Goes On in the Freeman Room at Lunchtime on Wednesdays? We now invite you to join us for a brief look at one of these infamous gatherings…

 

MCFADDEN: (Rolling dice). “Who owns Oriental Avenue?”

DORNBUSCH: Me. That’s six dollars.

FISCHER: My turn? (Rolls dice). Damn. Inflation tax again; Here’s ten percent of my cash balances. I passed go, didn’t I?

DIAMOND: Uh huh. Here’s $186 dollars.

FISCHER: I should get $200.

DIAMOND: Not since Gramm-Rudman. Everything’s reduced seven percent across the board.

DORNBUSCH: My turn. (Rolling dice). Four. (Reaches over and moves marker).

ECKAUS: No way, Rudi—you just moved six places. No overshooting in this game. (Hands Dornbusch Chance card)

DORNBUSCH: Ah. Go directly to Brazil. Do not return until the day classes start.

HAUSMAN: (Walking in from side of stage) How come you guys are playing MONOPOLY? I thought you usually played RISK…

DIAMOND: Oliver [Hart] took that game home. You know, his contract calls for RISK-sharing…

HAUSMAN: Can you believe the graduate students scheduled the skit party for the Friday before income taxes are due? The only people who’ll come are graduate students and people like theorists who file 1040 EZ’s. (walks off)

(FISHER walks in)

DIAMOND: (Rolling dice). My turn. Oriental again. Six more dollars for Dornbusch.

FISCHER: That’s a pretty profitable property, Rudi.

FISHER: How many times do I have to say it! You can’t possibly tell that from accounting numbers! (Pause). Why don’t we ever play fun games, like Consultant?

ECKAUS: I hear Jorgensen and Griliches play that all the time up at Harvard. Maybe you should give them a call.

FISHER: They’re never around.

DIAMOND: Of course not, Frank—that’s how you play consultant.

(FISHER exits.)

FARBER: Speaking of Harvard, how are we doing on graduate recruitment this year? I heard there was some Princeton scandal.

DIAMOND: The AEA put them on probation for recruiting violations. People could look the other way when they offered prospective students money and cars, but this year Joe Stiglitz promised to write a joint paper with all entering students.

FARBER: They’re really giving out cars?

DIAMOND: Sure. Yugo’s.

FARBER: All I got was a motorcycle…

MCFADDEN: Harvard and Princeton have been dumping all over us. Every prospective student has heard that Jerry Hausman cashed in his Frequent Flyer miles for a 727. And some even know that Marty Weitzman has a Harvard offer.

FISCHER: Well, that offer was certainly no surprise. The Harvard deans read THE SHARE ECONOMY and decided they should hire more workers.

DIAMOND: Still, we’re getting the best students. This morning I signed a Yale undergrad by offering him Solow’s office. I figured Bob can share E52-390 with Krugman, Eckaus, and Farber next year. But what happens when we run out of river-view offices?

FARBER: How’s Harvard doing on recruiting?

ECKAUS: Not too well. They’re on a big kick to look relevant. Mas-Collel’s going nuts—Dean Spence has a new rule that any agent in a theoretical model has to have a proper name. Andreu’s having real problems with his continuum papers…

MCFADDEN: I hear the Kennedy School’s helping their visibility. Have you heard about the new Meese Distinguished Service Medal?

DIAMOND: No. Who’s getting them?

MCFADDEN: Sammy Stewart for Distinguished Relief Pitching,
Martin Feldstein for Distinguished Empirical Work,
Larry Summers for Distinguished Dress,
NASA for distinction in Travel Safety,
Bob Lucas and Bob Barro for Distinguished Plausible Assumptions,
Ferdinand Marcos for Distinguished Contributions to Charity,
and John Kenneth Galbraith for Distinguished Use of Mathematics.

DORNBUSCH: Harvard’s visibility campaign’s paying off. Just last week one of their junior guys hit the cover of PEOPLE magazine with a paper about marriage rates among movie stars.

FISCHER: You read PEOPLE?

FARBER: The National Enquirer had a story about a Harvard student who claimed to have a picture of Jeff Sachs in Littauer. Just like the old days with Howard Hughes…

DORNBUSCH: Perhaps we should return to the game.

(MODIGLIANI walks on).

DIAMOND: My turn again? (Rolls dice and moves piece). Community Chest. (Looking at card) You are elected department head. Lose three turns.

(Someone walks up and hands DIAMOND a telephone message. He stands up.)

DIAMOND: I nearly forgot. I’m scheduled to join Mike Weisbach who is taking a prospective student windsurfing this afternoon. Figured it was the least I could do to convince him we were as laid back as Stanford. Franco—do you want to take my place?

MODIGLIANI: (Sitting down in Diamond’s place) So, what are the new developments on the Monopoly front? [Famous Modigliani paper “New Developments on the Oligopoly Front,” JPE, June 1958] (Pause) Now, which of these pieces is Peter’s?

MCFADDEN: The coconut. [Reference here to Diamond’s coconut model of a search economy.]

MODIGLIANI: My turn now?

FISCHER: No Franco—but go ahead. [presumably a reference to Modigliani’s propensity to talk, and talk, and talk.]

MODIGLIANI: (Rolls dice and moves marker). Chance. (McFadden hands him a card). What is this? You have won second prize in a Beauty Contest, Collect $10? This is NOT POSSIBLE. This year I win only FIRST PRIZES [reference to 1985 Nobel Prize for Economics].

DORNBUSCH: (To audience) Wait till he gets the bequest card… [cf. the JEP Spring 1988 paper by Modigliani that surveys the bequest motive]

FISCHER: Franco, I have a deal for you. I’ll trade you Mediterranean and the Water Works for North Carolina and an agreement that you never charge me rent on either property. If you renege, I’ll order Chinese food.

MODIGLIANI: No deal. But what’s this about Chinese food?

FISCHER: It’s a new thing I learned from Garth [Soloner]—it makes the deal sub-gum perfect.

MCFADDEN: My turn. (Rolls and draws a Chance card). My favorite card: Advance Token to the Railroad with the Highest Logit Probability Value. Let me see which one that is… (pulls out a calculator)

FISCHER: While we’re waiting for Dan to converge, how did we do in junior hiring? Did we get that Princeton theorist?

ECKAUS: No dice. All the Princeton guys told him not to come.

DORNBUSCH: Why?

ECKAUS: They said “Go to Yale, go directly to Yale.”

MODIGLIANI: What about senior appointments?

FARBER: Ask Peter [Temin]. He’s on the Search Committee.

MCFADDEN: (Looking up from calculator). I’m having convergence problems. Maybe we should postpone the game for a few minutes while I run down to the PRIME.

[the image of the last page at my disposal is very blurred, fortunately it is only the wrap-up by the announcer]

ANNOUNCER: As you all know, NOTHING takes a few minutes on the PRIME. So until next year, when the [?] [?] Solow who accompanied Stan, 3PO and R2D2 to [?] the [?] [?] from Chicago returns to produce another skit. Good night.

 

Source: Duke University, David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Papers of Robert M. Solow, Box 83.

Categories
Economic History Exam Questions Harvard Socialism

Harvard. Final exams in political economy and ethics of social reform, 1889-1890

 

The Harvard University Archives provide a fairly complete collection of final examinations for all Harvard courses. Slowly but surely Economics in the Rear-view Mirror is adding transcriptions of economics exam questions, sometimes for individual courses together with syllabi where available and sometimes as annual collections along with course enrollments. In this post we get one year closer to the turn of the twentieth century. Stay tuned or, better yet, subscribe to the blog below!

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1889-90
PHILOSOPHY 11.
THE ETHICS OF SOCIAL REFORM.

Enrollment.

[Philosophy] 11. Prof. [Francis Greenwood] Peabody. The Ethics of Social Reform. — The modern social questions: Charity, Divorce, the Indians, Temperance, and the various phases of the Labor Question, as questions of practical Ethics. — Lectures, essays, and practical observations. — Students in this course made personal study of movements in charity and reform. They inspected hospitals, asylums, and industrial schools in the neighborhood, and the various labor organizations, cooperative and profit-sharing enterprises and movements of socialism, temperance, etc., within their reach. Four special reports were presented by each student, based so far as possible upon these special researches. Hours per week: 2 or 3.

Total 112: 1 Graduate, 53 Seniors, 34 Juniors, 9 Sophomores, 15 Others.

Source: Harvard University. Annual Report of the President of Harvard College 1889-1890, p. 79.

1889-90
PHILOSOPHY 11.
THE ETHICS OF SOCIAL REFORM
[Mid-Year Examination. 1890.]

Omit one question.

  1. “This Course of study has a twofold purpose, — an immediate and practical purpose, and an indirect and philosophical purpose.” — Lecture I. Illustrate both of these intentions of the Course in the case of either Social Question thus far treated.
  2. Compare the “Social Organism” of Hobbes or of Rousseau with the modern conception of society.
  3. “Here is a tenant-farmer whose principles prompt him to vote in opposition to his landlord…May he then take a course which will eject him from his farm and so cause inability to feed his children?…No one can decide by which course the least wrong is likely to be done.” — Spencer, Data of Ethics, p. 267.

“Thou love repine and reason chafe,
There came a voice without reply —
‘Tis man’s perdition to be safe
When for the truth he ought to die.’”

Emerson, Poems, p. 253. Sacrifice.

Define and compare the principles of conduct proposed in these two passages.

  1. The doctrine of the “Forgotten Man,” — its meaning and its effect on charity and on the stability of the State. Interpret, under this principle of conduct, the parable of the Good Samaritan.
  2. The history of the English Poor Law as illustrating the progress and the dangers of modern charity.
  3. The Law of Marriage in the United States, — its two chief forms, its effect on divorce, and the changes proposed in the interest of Divorce Reform.
  4. The Patriarchal Theory, — its definition, its evidence, and its place in the Philosophy of the Family.
  5. Exogamy, — its meaning, its suppose causes, and its effect on the development of society.
  6. The relation of the stable family type to —
    1. The Philosophy of Individualism.
    2. The Philosophy of Socialism.
  7. Illustrate the dependence of the question of the home on the industrial and economic tendencies of the time.

Source: Harvard University Archives.  Harvard University, Mid-year examinations, 1852-1943. Box 2. Bound volume. Examination Papers, Mid-Year 1889-90.

 

1889-90
PHILOSOPHY 11.
THE ETHICS OF SOCIAL REFORM
[Year-end Examination. 1890.]

[Omit one question.]

  1. State, briefly, any general results which you may have seemed to yourself to gain from this course of study.
  2. The facts, so far as investigated, as to the distribution of wealth in England and in this country, and the lessons to be derived from these facts in either case.
  3. The economic doctrine of Carlyle’s “Past and Present,” and its value in the modern “Social Question.”
  4. Distinguish Anarchism, Communism, and Socialism in their relation to: —
    1. The philosophy of Individualism
    2. The present industrial order.
  5. The tendency in modern legislation which encourages the Socialist. How far, in your opinion, is his inference from this tendency justifiable?
  6. Distinguish the logical and the practical relationships of Socialism to: (a) Religion. (b) Co-operation.
  7. The business principles which give a commercial advantage to an English co-operative store.
  8. State the issue between Federalism and Individualism in Co-operation.
  9. Describe the four prevailing methods of liquor legislation, their relation to each other, and the arguments which encourage each.
  10. Illustrate the “correlation” of the temperance question with other social questions of the time.
  11. How far does such a study of the Social Questions as we have pursued go to establish a theory of Ethics? Illustrate this philosophical contribution in the case of any one of the questions of this Course.

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 3. Bound Volume: Examination Papers, 1890-92. Papers set for Final Examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1890), pp. 8-9.

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1889-90
POLITICAL ECONOMY 1.

Enrollment.

[Political Economy] 1. Profs. [Frank William] Taussig and [Silas Marcus] Macvane, and Mr. [Edward Campbell] Mason. Mill’s Principles of Political Economy. — Cairnes’s Leading Principles of Political Economy. — Lectures on Social Questions (Coöperation, Profit-Sharing, Trades-Unions, Socialism). Banking, and the financial legislation of the United States. Hours per week: 3.

Total 179: 2 Graduates, 29 Seniors, 65 Juniors, 60 Sophomores, 23 Others.

Source: Harvard University. Annual Report of the President of Harvard College 1889-1890, p. 80.

 

1889-90
POLITICAL ECONOMY 1.
[Mid-Year Examination. 1890.]

  1. Define wealth; define capital; and explain which of the following are wealth or capital: pig iron, gold bullion, water, woolen cloth, bank-notes.
  2. Is there any inconsistency between the propositions (1) that capital is the result of saving, (2) that it is perpetually consumed, (3) that the amount of capital in civilized communities is steadily increasing?
  3. On what grounds does Mill conclude that the increase of fixed capital at the expense of circulating is seldom injurious to the laborers? On what grounds does he conclude that, when government expenditures for wars are defrayed from loans, the laborers usually suffer no detriment?
  4. Explain the proposition that even though all the land in cultivation paid rent, there would always be some agricultural capital paying no rent.
  5. Trace the connections between the law of population and the law of rent.
  6. What is the effect on values, if any, of (1) a rise of profits in a particular occupation, (2) a general rise in profits?
  7. “The preceding are cases in which inequality of remuneration is necessary to produce equality of attractiveness, and are examples of the equalizing effect of competition. The following are cases of real inequality, and arise from a different principle.” Give examples of differences of wages illustrating each of these two sets of cases; and explain what is the principle from which the second set arise.
  8. “Retail price, the price paid by the actual consumer, seems to feel very slowly and imperfectly the effect of competition; and when competition does exist, it often, instead of lowering prices, merely divides the gains of the high price among a greater number of dealers.” Explain.
  9. What are the laws of value applying to (1) land, (2) raw cotton, (3) cotton cloth, (4) gold?
  10. How does the legislation of the United States on National Banks provide for the safety of notes and of deposits?

Source: Harvard University Archives.  Harvard University, Mid-year examinations, 1852-1943. Box 2. Bound volume. Examination Papers, Mid-Year 1889-90.

 

1889-90
POLITICAL ECONOMY 1.
[Year-end Examination. 1890.]

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

  1. How does Mill explain the fact that the wages of women are lower than the wages of men? Wherein is his explanation analogous to certain propositions on which Cairnes laid stress?
  2. “Wages, then, depend mainly upon the proportion between population and capital. By population is here meant the number only of the laboring class, or rather of those who work for hire; and by capital, only circulating capital, and not even the whole of that, but the part which is expended in the direct purchase of labor.” — Mill.
    What has Cairnes added to this statement of the wages-fund doctrine?
  3. On what grounds does Cairnes conclude that trades unions cannot raise general wages?
  4. Explain how it may happen that a thing can be sold cheapest by being produced in some other place that that at which it can be produced with the greatest amount of labor and abstinence.
  5. What effect does the growth of a country have on the relative values of hides and beef? How far would improvements enabling beef to be transported for great distances affect Cairnes’s conclusions on this subject?
  6. Mill lays it down that an emission of paper money beyond the quantity of specie previously in circulation will cause the disappearance of the whole of the metallic money; but observes that if paper be not issued of as low a denomination as the lowest coin, such coin will remain as convenience requires for the smaller payments. What light does experience of the United States during the Civil War throw on the main proposition, and on the qualification?
  7. “No nation can continue to pay its foreign debts by the process of incurring new debts to meet a balance yearly accruing against it; yet this, in truth, is the nature of the financial operation by which of late years the United States has contrived to settle accounts with the rest of the world…These considerations lead me to the conclusion that the present condition [1873] of the external trade of the United States is essentially abnormal and temporary. If that country is to continue to discharge her liabilities to foreigners, the relation which at present obtains between exports and imports in her external trade must be inverted.”
    State the reasoning by which Cairnes was led to this prediction; and explain how far it was verified by the events of the years after succeeding 1873. Point out the bearing of those events on the resumption of specie payments by the United States.
  8. “Suppose that, under a double standard, gold rises in value relatively to silver, so that the quantity of gold in a sovereign is now worth more than the quantity of silver in twenty shillings. The consequence will be that, unless a sovereign can be sold for more than twenty shillings, all the sovereigns will be melted, since as bullion they will purchase a greater number of shillings than they exchange for as coin.” — Mill.
    Explain (1) the conditions assumed in regard to international trade in this reasoning; (2) the mode in which, under the double standard, the metal whose value rises in fact goes out of circulation; (3) the reasons why the coinage of silver in the United States since 1878 has not driven gold out of the currency.
  9. Are general high prices an advantage to a country?
  10. What were Mill’s expectations as to the future of coöperative production? Cairnes’s? What does experience lead you to expect?

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 3. Bound Volume: Examination Papers, 1890-92. Papers set for Final Examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1890), pp. 10-11.

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1889-90
POLITICAL ECONOMY 2.

Enrollment.

[Political Economy] 2. Prof. [Frank William] Taussig and Mr. [John Graham] Brooks. First half-year: Lectures on the History of Economic Theory. — Discussion of selections from Adam Smith and Ricardo. — Topics in distribution, with special reference to wages and managers’ returns. — Second half-year: Modern Socialism in France, Germany, and England. — An extended thesis from each student. Hours per week: 3. *Consent of instructor required.

Total 24: 7 Seniors, 12 Juniors, 1 Sophomores, 4 Others.

Source: Harvard University. Annual Report of the President of Harvard College 1889-1890, p. 80.

 

1889-90
POLITICAL ECONOMY 2.
[Mid-Year Examination. 1890.]

  1. Sidgwick supposes that, in a country where the ratio of auxiliary to remuneratory capital is 5 to 1, 120 millions are saved and added to the existing capital, and asks, “in what proportion are we to suppose this to be divided?” Answer the question.
  2. On the same supposition Cairnes’s answer is expected to be that the whole of the 120 millions would be added to the wages fund. “But then, unless the laborers became personally more efficient in consequence — which Cairnes does not assume — there would be no increase in the annual produce, and therefore the whole increase in the wages fund would be taken out of the profits within the year after the rise. Now, though I do not consider saving to depend so entirely on the prospect of profit as Mill and other economists, still I cannot doubt that a reduction in profits by an amount equivalent to the whole amount saved would very soon bring accumulation to a stop; hence the conclusion from Cairnes’s assumptions would seem to be that under no circumstances can capital increase to any considerable extent unless the number of laborers increases also.”
    What would Cairnes say to this?
  3. Explain what is Sidgwick’s conclusion as to the effect of profits on accumulation; and point out wherein his treatment of this topic differs from Cairnes’s and from Ricardo’s.
  4. In what sense does George use the term “wages”? Ricardo? Mill? Cairnes?
  5. Explain wherein Sidgwick’s general theory of distribution differs from Walker’s.
  6. Compare the treatment of rent by the Physiocratic writers and by Adam Smith.
  7. What was Adam Smith’s doctrine as to labor as a means of value? What was Ricardo’s criticism on that doctrine?
  8. What did Adam Smith say to the argument that taxes on the necessaries of life raise the price of labor, and therefore give good ground for import duties on the commodities produced at home by the high-priced labor? What would Ricardo have said to the same argument?
  9. How does Ricardo show that the application of labor and capital to worse soil brings a decline of profits not only in agriculture, but in all industries?

Source: Harvard University Archives. Examination papers in economics 1882-1935 of Professor F. W. Taussig (HUC 7882). Scrapbook.
Also included in Harvard University Archives.  Harvard University, Mid-year examinations, 1852-1943. Box 2. Bound volume. Examination Papers, Mid-Year 1889-90.

 

Political Economy 2.
[Year-end Examination, June 1890.]

  1. Characterize French Socialism, chiefly with reference to St. Simon and Louis Blanc.
  2. What general differences do you note between French and German Socialism?
  3. Summarize Lasalle’s theory of history development.
  4. State and criticize in detail Marx’s theory of surplus value. What follows as to Socialism, if this theory fails?
  5. Is Schaeffle a Socialist? If so, why? If not, why not?
  6. State the present attitude of English Socialism, with special reference to the Fabian Society. Note the most important changes from the Marx type.
  7. In what definite ways would Socialism modify the system of private property?

Source: Harvard University Archives. Harvard University Examination papers, 1873-1915. Box 3, Vol. Examination Papers, 1890-92. Papers set for Final Examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1890), pp. 11-12. Previously posted in Economics in the Rear-view Mirror.

______________________

1889-90
POLITICAL ECONOMY 3.

Enrollment.

[Political Economy] 3. Prof. [Frank William] Taussig and Mr. [John Graham] Brooks. Investigation and Discussion of Practical Economic Questions. — Subjects for 1889-90: Profit-Sharing; the Silver Situation in the United States; Prices since 1850; the Regulation of Railways by the Interstate Commerce Act. — Lectures and discussion of theses. Hours per week: 2. *Consent of instructor required.

Total 19: 15 Seniors, 4 Juniors.

Source: Harvard University. Annual Report of the President of Harvard College 1889-1890, p. 80.

 

1889-90
POLITICAL ECONOMY 3.
[Mid-Year Examination. 1890.]

  1. Define Profit-sharing, distinguishing it from Coöperation and from existing forms of the wages system.
  2. What in your opinion are the four most successful experiments, with specific reasons for the choice?
  3. State as definitely as possible the conditions under which Profit-sharing is most likely to succeed.
  4. What are the advantages of immediate as against deferred participation?
  5. How serious is the current objection that the laborer cannot or ought not to bear the losses incident to business?
  6. What of the objection that secrecy is impossible?
  7. What specific evidence is there that an extraordinary person is not permanently necessary to successful Profit-sharing?
  8. State briefly the actual advantages and disadvantages of Profit-sharing as they have appeared in history.
  9. What would be the probably effects of competition upon a larger application of Profit-sharing to our industrial system?
  10. What is the best method of dividing the bonus? Add any criticism upon the actual division as seen in history.
  11. Will self-interest alone insure successful Profit-sharing? If not, how can the difficulty be met without violating “business principles”?

Supplementary Questions.

  1. What, if any, is the nature of the antagonism in Profit-sharing among capitalist, manager, and workman?
  2. What of the objection that Profit-sharing is inconsistent with the nature of a legal contract?
  3. Would a wider application of Profit-sharing modify any given theory (as that of Cairnes or Walker) as to the wage fund?

Source: Harvard University Archives.  Harvard University, Mid-year examinations, 1852-1943. Box 2. Bound volume. Examination Papers, Mid-Year 1889-90.

 

1889-90
POLITICAL ECONOMY 3.
[Year-end Examination. 1890.]

  1. In 1887 the Secretary of the Treasury suggested that the purchase by the government of silver for coinage into standard dollars should be subject only to one limitation: that whenever the silver dollars held by the Treasury, over and above those held against outstanding certificates, exceeded $5,000,000, the purchase and coinage should cease.
    Explain (1) how the effects of this plan, in the years from 1887 to 1889, would have differed from those of the actual coinage and issue; (2) whether the silver currency so issued could, under any circumstances, be at a discount as compared with gold.
  2. Give the same explanations in regard to a plan by which the government should purchase every month $4,500,000 worth of silver bullion and issue therefor certificates, redeemable, at the government’s option, in gold or silver coin; or, at the holder’s option, in silver bullion at its market value on the day of their presentation for redemption.
  3. What are India Council Bills? How does their issue affect the price of silver?
  4. Point out what bearing you think improvements in production have on the existence and effects of an appreciation of gold.
  5. Explain the following terms, giving examples: (a) group rate; (b) differential; (c) relatively reasonable rates; (d) arbitraries, (e) commodity rate.
  6. Is it unjust discrimination, under the Interstate Commerce Act, (1) to offer a discount to any consignee who receives more than a specified quantity of freight a year; (2) to give a lower rate to regular shippers than to occasional shippers; (3) to refuse to pay mileage for the use of cars furnished by a shipper of cattle, when mileage is paid for the use of cars furnished by a shipper of oil; (4) to charge more per mile on long hauls than on short hauls.
  7. Comment on the following: “The value of service is generally regarded as the most important factor in fixing rates…The value of service to a shipper in a general sense is the ability to reach a market and make his commodity a subject of commerce. In this sense, the service is more valuable to a man who transports a thousand miles than to a man who transports a hundred miles, so that distance is an element in value of service. In a more definite and accurate sense, it consists in reaching a market at a profit, being in effect what the traffic will bear, to be remunerative to the producer or trader.”
  8. Explain how the penalties for violating the Interstate Commerce Act can be enforced, and how they have been enforced.

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 3. Bound Volume: Examination Papers, 1890-92. Papers set for Final Examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1890), pp. 12-13.

______________________

1889-90
POLITICAL ECONOMY 4.

Enrollment.

[Political Economy] 4. Mr. [Adolph Caspar] Miller. Economic History of Europe and America since the Seven Years’ War. — Lectures and written work. Hours per week: 3.

Total 106: 25 Seniors, 27 Juniors, 35 Sophomores, 3 Freshmen, 16 Others.

Source: Harvard University. Annual Report of the President of Harvard College 1889-1890, p. 80.

*  *  *  *  *  *

From the prefatory note to Benjamin Rand’s (ed.) Selections illustrating economic history since the Seven Years’ War (Cambridge, MA: Waterman and Amee, 1889):

These selections have been made for use as a text-book of required reading to accompany a course of lectures on economic history given at Harvard College.

*  *  *  *  *  *

1889-90
POLITICAL ECONOMY 4.
[Mid-Year Examination. 1890.]

[Take all of A, and seven questions from B.]

A.

  1. “It has often been imagined that the property of these great masses of land was almost entirely in the hands of the church, the monasteries, the nobility, and the financiers; and that before 1789 only large estates existed, while the class of small proprietors was created by the Revolution. Some consider this supposed change as the highest glory, and others as the greatest calamity of modern times; but all are agreed as to the fact. — Von Sybel, [Economic Causes of the French Revolution] in Selections, p. 52.
    (a) What do you consider to be the fact?
    (b) Granting the fact, how do you regard the change?
  2. Speaking of the fall of wages in England during the French wars, Mr. Porter [The Finances of England, 1793-1815, Selections, p. 114] says: “Nor could it well be otherwise, since the demand for labor can only increase with the increase of the capital destined for the payment of wages.” Why was there no increase of the capital destined for the payment of wages when, according to J. S. Mill, “the wealth and resources of the country, instead of diminishing, gave every sign of rapid increase”?
  3. Porter [Selections, p. 121] says: “There never could have existed any doubt of the fact that, whenever the necessity for borrowing should cease, the market value of the public funds would advance greatly…. The knowledge of this fact should have led the ministers, by whom successive additions were made to the public debt, to the adoption of a course which would have enabled them to turn this rise of prices to the advantage of the public, instead of its being, as it has proved, productive of loss.”
    What was the course adopted and how was it productive of loss? Was this “loss” at all offset by any advantages?
  4. Mention briefly the events associated in your mind with six of the following names: Sheffield; Slater; Coalbrookdale; Young; Dud Dudley; Coxe; Killingworth; Clarkson; “Rocket.”

B.

  1. How was England commercially affected by the loss of her American colonies in 1783?
  2. (a) Compare the French debt and taxation in 1789 with those of England at about the same date.
    (b) Point out the significance of England’s debt in 1783 as compared with 1889.
  3. (a) What method would you pursue in investigating the question as to the depreciation of bank notes during the Restriction?
    (b) Tooke’s explanation of the high price of bullion during the Restriction. Wherein did it differ from the opinion of the Bullion Committee?
    (c) How do you account for the high profits of the Bank of England during the Restriction?
  4. (a) Describe the French assignats and point out wherein they differed from the territorial mandates.
    (b) What was the tiers consolidé?
  5. (a) In what particular ways were England and the United States peculiarly benefited by the introduction of steam navigation?
    (b) What changes were introduced into the French railway system under Napoleon III.?
  6. (a) Napoleon’s Continental System. Its effects upon England and France respectively.
    (b) Point out the chief factors determining the commercial development of the United States from 1789 to 1816.
  7. (a) General commercial and industrial nature of the period 1815 to 1830.
    (b) Were the progressive changes of prices a cause or an effect of the disturbances of this period?
    (c) How did the increase of pauperism affect the distribution of wealth in England during and following the Napoleonic wars?
  8. (a) Why has the current of liberal commercial opinions been successful in influencing legislation in England, but ineffective in France?
    (b) Describe the Merchants’ Petition, and point out its importance.
  9. (a) Formation and constitution of the Zoll Verein.
    (b) In what manner were the duties of the Zoll Verein levied?

Source: Harvard University Archives.  Harvard University, Mid-year examinations, 1852-1943. Box 2. Bound volume. Examination Papers, Mid-Year 1889-90.

 

1889-90
POLITICAL ECONOMY 4.
[Year-end Examination. 1890.]

[Take all of A and eight questions from B.]

A.

  1. Cairnes [From Cairnes’ Essays in Political Economy, “The New Gold”, in Selections, p. 211] says that “as a general conclusion we may say, that in proportion as in any country the local depreciation of gold is more or less rapid than the average rate elsewhere, the effect of the monetary disturbance will be for that country beneficial or injurious.”
    1. By what process of reasoning does Mr. Cairnes reach this conclusion?
    2. To what extent was it verified by the history of the new gold movement?
    3. What would determine the rapidity of the local depreciation in any country?
  2. The writer in Blackwood’s [“The French Indemnity: The Payment of the Five Milliards” in Selections, p. 250], speaking of the origin of the indemnity bills, quotes M. Say as being of the opinion “that scarcely any part of the indemnity bills was furnished by the current commercial trade of the country.” How were they furnished?
  3. The same writer [Selections, p. 246] says that “the quantities of bills, of each kind, that were bought by the French Government as vehicles of transmission, in no way indicate the form in which the money was handed over to the German Treasury.” Why?
  4. Wells [Recent Economic Changes, p. 218] says “the changes in recent years in the world’s economic condition have essentially changed the relative importance of the two functions which gold, as the leading monetary metal, discharges; namely, that of an instrumentality for facilitating exchanges and as a measure of value.” Describe some of the agencies and evidences of this change in the functions of gold, and point out what influence has thus been exerted upon the value of gold.

B.

  1. Why was an additional supply of gold especially important, 1850-69?
  2. What part did India play in the gold movement, 1851-67? How has her ability in this respect been modified?
  3. To what extent can the decline of our tonnage be ascribed to the effects of the Civil War?
  4. How do you account for the increase of the trading classes during the Civil War?
  5. American wheat and its effect upon English agriculture. How were the results modified by the lord and tenant system?
  6. German coinage and the crisis of 1873. To what extent did it contribute to the fall of prices after 1873?
  7. How did the crisis of 1873 simplify the problem of specie resumption for the United States? Did it do the same for France?
  8. Why did France recover so rapidly after the war of 1870-71?
  9. The Suez Canal and Oriental trade.
  10. Compare the period 1873-89 with the period 1815-30.

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 3. Bound Volume: Examination Papers, 1890-92. Papers set for Final Examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1890), pp. 13-14.

______________________

1889-90
POLITICAL ECONOMY 6.

Enrollment.

[Political Economy] 6. Prof. [Frank William] Taussig. History of Tariff Legislation in the United States. — Lectures on the History of Tariff Legislation. — Discussion of brief theses (two from each student). — Lectures on the Tariff History of France and England. Hours per week: 2 or 3. 2d half-year. *Consent of instructor required.

Total 29: 19 Seniors, 9 Juniors, 1 Other.

Source: Harvard University. Annual Report of the President of Harvard College 1889-1890, p. 80.

 

1889-90.
POLITICAL ECONOMY 6
[End-Year]

  1. What grounds are there for believing that the restrictive policy of Great Britain did or did not have a considerable effect on the industrial development of the American colonies?
  2. What was the effect of the political situation in 1824 on the tariff act of that year? in 1842 on the act of 1842?
  3. “The tariff of 1846 was passed by a party vote. It followed the strict constructionist theory in aiming at a list of duties sufficient only to provide revenue for the government, without regard to protection.”—Johnston’s American Politics.
    Was the act passed by a party vote? Did it disregard protection? Did it succeed in fixing duties sufficient only to provide revenue?
  4. What basis is there for the assertion that the gold premium, in the years after the civil war, increased the protection given by the import duties?
  5. Under what circumstances was the tariff act of 1864 passed? How long did it remain in force?
  6. Is there any analogy between the effects of the duties on cotton goods after 1816 and those on steel rails after 1870?
  7. Wherein would there probably be differences in the effects of reciprocity treaties (1) with Canada, admitting coal free; (2) with Great Britain, admitting iron free; (3) with Brazil, admitting sugar free?
  8. Apply Gallatin’s test as to the effect of duties on the price of the protected articles, to the present facts in regard to (1) clothing wool, (2) silks.
  9. On what grounds is the removal of the duty on pig iron more or less desirable than that of the duty on sugar?
  10. Is it a strong objection to ad valorem duties that they depend on foreign prices and that therefore the duties are fixed by foreigners? Is it a strong objection to specific duties that they operate unequally?

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 3. Bound Volume: Examination Papers, 1890-92. Papers set for Final Examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1890), pp. 14-15.
Also: Harvard University Archives. Examination papers in economics, 1882-1935. Prof. F. W. Taussig.

______________________

1889-90
POLITICAL ECONOMY 7.
Public Finance and Banking.

[Omitted in 1889-90]

Source: Harvard University. Annual Report of the President of Harvard College 1889-1890, p. 80.

______________________

1889-90
POLITICAL ECONOMY 8.

Enrollment.

[Political Economy] 8. Mr. [Adolph Caspar] Miller. History of Financial Legislation in the United States. — Lectures and brief theses. Hours per week: 2 or 3. 1st half-year.

Total 25: 13 Seniors, 10 Juniors, 2 Others.

Source: Harvard University. Annual Report of the President of Harvard College 1889-1890, p. 81.

 

1889-90
POLITICAL ECONOMY 8.
[Mid-year examination]

[Take two questions from A, and eight from B.]

The questions under A are supposed to require half an hour each for careful treatment, and those under B fifteen minutes each.

A.

  1. Commenting on those provisions of the Funding Act of August 4, 1790, by which the six-per-cent stock was made “subject to redemption by payments not exceeding in one year, on account of both principal and interest, the proportion of eight dollars upon each hundred, Professor Adams remarks: —
    “In our previous study of annuities it was discovered that long-time annuities did not meet the requirements of good financiering, because they unnecessarily embarrassed the policy of debt payment. The same objection attaches to this plan of Mr. Hamilton. The record of subsequent treasury operations renders it reasonably certain that a simple six-per-cent bond, guaranteed to run for twenty years, would have proved satisfactory to public creditors, and have induced them to comply with the other conditions which the Government imposed. This would have brought the larger part of the six-per-cent bonds under the control of Congress in the years 1811 and 1813, and permitted either their redemption or their conversion into stock bearing a reduced rate of interest. But since the right of redemption except at a stated rate, had been signed away, it was found necessary to continue the higher rate of interest upon the common stock till 1818, and upon the ‘deferred stock’ until 1824. As the matter turned out, the war of 1812 would have rendered such an operation upon the common stock impossible, had it been permitted by the contract; but this does not excuse the Federalists for having adopted a bad theory of funding.”
    Do you consider this a sound criticism of Hamilton’s plan of funding? By what means do you determine whether or not it met the “requirements of good financiering”?
  2. “Our sinking fund, however, differed materially from that which was adopted in the early financial history of Great Britain, as it was not exclusively applied to the liquidation of a particular debt in existence. It was also unlike that of Mr. Pitt, as the amount of the capital appropriated was not fixed before 1802….Properly speaking, the essential character of a sinking fund was not to be found in the operations of that of the United States.” — Jonathan Elliot, Funding System of the United States and of Great Britain, p. 406, note.
    Discuss the above with particular reference to the alleged difference of principle between Pitt’s sinking-fund policy and Hamilton’s. In this connection, also point out carefully what changes were introduced into the sinking-fund policy of the United States in 1802. Do those changes represent any real departure from the principle of Hamilton’s sinking-fund?
  3. “The most generally received opinion is, that, by direct taxes in the Constitution, those are meant which are raised on the capital or revenue of the people….As that opinion is in itself rational,… it will not be improper to corroborate it by quoting the author from whom the idea seems to have been borrowed. Dr. Smith Wealth of Nations, book V. chap. 2) says, ‘The private revenue of individuals arises ultimately from three different sources: Rent, Profit, and Wages. Every tax must finally be paid from some one or other of those three different sorts of revenue, or from all of them indifferently.’ After having treated separately of those taxes which, it is intended, should fall upon some one or other of the different sorts of revenue, he continues, ‘The taxes which, it is intended, should fall indifferently upon every different species of revenue, are capitation taxes, and taxes upon consumable commodities.’ And, after having treated of capitation taxes, he finally says, ‘The impossibility of taxing the people, in proportion to their revenue, by any capitation, seems to have given occasion to the invention of taxes upon consumable commodities. The State, not knowing how to tax directly and proportionably the revenue of its subjects, endeavours to tax it indirectly.’ The remarkable coincidence of the clause of the Constitution, with this passage, in using the word ‘capitation’ as a generic expression, including the different species of direct taxes, — an acceptation of the word peculiar, it is believed, to Dr. Smith, — leaves little doubt that the framers of the one had the other in view at the time, and that they, as well as he, by direct taxes, meant those paid directly from, and falling immediately on, the revenue.” — Albert Gallatin, Sketch of the Finances, p. 12.
    Discuss the above with particular reference to the source and meaning of the phrase “direct taxes” in the Constitution of the United States.

B.

  1. “The Act provided, that, if the total amount subscribed by any state exceeded the sum specified therein, a similar percentage should be deducted from the claims of all subscribers. Four ninths of the stock issued by the government for this loan bore interest at six per cent, beginning with the year 1792; on third bore three per cent interest, beginning at the same time, and the balance, two ninths, bore six per cent interest after the year 1800. The latter kind of stock was to be redeemed whenever provision was made for that purpose. And, with respect to seven ninths of the stock, the government was at liberty to pay two per cent annually, if it desired; but no imperative obligation was created to pay it.” — A. S. Boles, Financial History of the United States, vol. II. p. 28.
    Is this an accurate statement, so far as it goes, of the provisions of the Act of August 4, 1790, for assuming the State debts?
  2. How is President Madison’s approval of the Bank Act of April 10, 1816, to be reconciled with his bank veto of January 30, 1815?
  3. “During the winter of 1833-34 there was a stringent money market and commercial distress. The State banks were in no condition to take the public deposits. They were trying to strengthen themselves, and put themselves on the level of the Treasury requirements in the hope of getting a share of the deposits. It was they who operated a bank contraction during that winter…The administration, however, charged everything to Biddle and the bank.” — W. G. Sumner, Andrew Jackson, p. 316.
    Where do you consider that the real responsibility for the pressure of 1833-34 rested?
  4. What criticism would you make on the financial management of the war of 1812? Was it a fair test of the policy of relying upon public credit for defraying the extraordinary expenses of war?
  5. What kind of currency did the government use and where did it keep its moneys, and under what authority of law, from 1811 to 1864?
  6. How is the extension of accommodations by the Bank of the United States from 1830 to the middle of 1832 to be explained?
  7. What were the terms of the one hundred and fifty million bank loan of 1861, and how was it financially important?
  8. Point out the steps by which the legal-tender notes have become a fixed and permanent part of the currency.
  9. What is the essence of the national bank system, so far as concerns note-circulation, and what bearing does this have upon the future of the system?
  10. Is Mr. Chase entitled to take rank in American history as a great finance minister? State carefully and concisely the grounds of your opinion.

Source: Harvard University Archives.  Harvard University, Mid-year examinations, 1852-1943. Box 2. Bound volume. Examination Papers, Mid-Year 1889-90.

______________________

1889-90
POLITICAL ECONOMY 9.
Management and Ownership of Railways.

[Omitted in 1889-90]

Source: Harvard University. Annual Report of the President of Harvard College 1889-1890, p. 81.

 

Image Source: Harvard University Archives. Harvard Square, 1885.

 

 

Categories
Berkeley Economists Harvard Princeton

Harvard. Economics Ph.D. Alumnus, Merton Kirk Cameron, 1921

 

After graduating from Princeton, Merton K. Cameron taught high-school Latin, Greek and History before going on for graduate work in economic history at Harvard University where he co-taught courses in the economics of transportation and the economics corporations with Professor William Z. Ripley in 1915-16.

From his obituary in the Honolulu Star-Bulletin (23 May 1952, p. 5) we learn that he retired from the University of Hawaii in August, 1949 because of ill health and then moved with his family to California. It was reported that Cameron was “a member of the Honolulu Chamber of Commerce, Phi Gamma Delta, American Association of University Professors, Phi Kappa Phi, Pi Gamma Mu, National Association of Cost Accountanats and the American Economics Association.”

Merton Kirk Cameron was born 7 January 1886 in Cecil County, Maryland and died 22 May 1952 in San Gabriel, California.

_________________

Harvard Economics Ph.D., 1921

Merton Kirk Cameron, A.B. (Princeton Univ.) 1908, A.M. (Harvard Univ.) 1914.

Subject, Economics. Special Field, Economic History. Thesis, “The History of Tobacco-Growing in the Ohio Valley.”
Assistant Professor of Economics, University of Oregon.

Source: Harvard University. Report of the President of Harvard College, 1920-21, p. 60.

_________________

Summer School, Berkeley 1932

Merton Kirk Cameron, Ph.D., Professor of Economics and Head of the Department of Economics and Business, University of Hawaii.

A.B., Princeton University, 1908; M.A., 1914, Ph.D., 1921, Harvard University. Assistant Professor of Economics, University of Oregon, 1920-23, Associate Professor, 1923-28; Professor of Economics, University of Hawaii, since 1928.
Author: Experience of Oregon with Popular Election and Recall of Public Service Commissioners; Some Neglected Aspects of the Problem of Poverty; The Political Pressure on the State Commissioners; Some Economic Causes of the Backward Condition in the Ante-Bellum Ohio Valley Tobacco District.

Source: University of California, Intersession and Summer Session, 1932 at Berkeley. (Officers of Administration and Instruction, Visiting Instructors), p. 4.

_________________

From the Princeton Alumni Weekly (1952)
Memorial

Merton Cameron, Ph.D., educator and author of many scientific books and articles on sociological and economic studies, died on May 22, 1952 at his home in San Gabriel, Calif. For the past 30 years prior to his retirement in 1950 he was professor of Economics and chairman of the Dept. of Economics and Business at the University of Hawaii, Honolulu. During World War II following the Japanese attack on Pearl Harbor he was active in defense work in Honolulu, both in directing the construction of bomb shelters and as an expert on finger prints. At that time his wife, Margaret, served in the Honolulu Office of Censorship.

Froggy, as he was affectionately known in college, elected teaching as a career, having served on the faculties of several U.S. schools including the Lanier High School in Maryland, the Donald Fraser School of Decatur, Ga. [ca. 1908], and the Riverside Military Academy at Gainesville, Ga. [ca. 1911], before accepting an offer from the University of Hawaii. He was one of those rare teachers who was not only a master of his subject but able to arouse enthusiastic response and admiration from his pupils.

Surviving in addition to his wife, Mrs. Margaret Elizabeth Sullivan Cameron, are a son, Merton K. Jr.; a daughter Edith, wife of Col. Kenneth R. Kenerick and two grandchildren, Karen J. Kenerick and Kaye Elizabeth Kenerick.

To the members of his family who survive the Class extends its sincere sympathy.

For the Class of 1908
Robert C. Clothier, President
Courtland N. Smith, Secretary

Source: Princeton Alumni Weekly, July 4, 1952, p. 34.

Image Source: University of Hawaii Yearbook, 1936.

Categories
Harvard Statistics Suggested Reading Syllabus

Harvard. Graduate Econometrics. Chipman 1953

 

John S. Chipman was born in Montreal, Canada, in 1926. He received his Ph.D. from the Johns Hopkins University in 1951, and taught at the University of Minnesota from 1955 to his retirement as Regents’ Professor in 2007. Before going to Minnesota, Chipman was assistant professor of economics at Harvard from 1951-55.

John Chipman’s graduate course in econometrics (Note: apparently the first time “econometrics” had ever been listed as the course name at Harvard) followed his graduate course on “General Interdependence Systems”  that was taught in the spring term 1952 (a.k.a. “Mathematical Economics” according to the enrollment data for that year). 

____________

Course Enrollment

[Economics] 215 Econometrics. Assistant Professor Chipman. Half course.

(Fall) Total 6: 5 Graduates, 1 Other.

Source: Harvard University. Report of the President of Harvard College 1953-1954, p. 100.

____________

Course Syllabus
Economics 215

HARVARD UNIVERSITY
Department of Economics
Fall Term, 1953-54

Text: Klein, A Textbook of Econometrics; Supplementary text: Hood and Koopmans, Studies in Econometric Method.

(N.B. Numbers in brackets refer to References following the Outline).

OUTLINE

1. SPECIFICATION

The construction of models, choice of variables; collinearity; concepts of structure and reduced form; aims and purposes of econometrics.

Jacob Marschak, “Economic Measurements for Policy and Prediction,” [3, Ch. I].

Haavelmo [2].

Stone [8].

Tinbergen [10, 9].

Marschak, “Statistical Inference in Economics: An Introduction,“ [6, Ch. I].

Tintner [12, Ch. I].

Arthur F. Burns and Jacob Marschak, “Mitchell on What Happens During Business Cycles,” [7, pp. 3-33].

Tinbergen and Koopmans, “Reformulation of Current Business Cycle Theories as Refutable Hypotheses,” [7, pp. 131-145].

Frisch [1].

Koopmans [5].

Tinbergen [11].

Koopmans, “Measurement Without Theory,” Review of Economic Statistics, Vol. 29, 1947.

Koopmans and Vining, “Methodological Issues in Quantitative Economics”, Review of Economics and Statistics, Vol. 31, 1949.

G.H. Orcutt and Others, “Toward Partial Redirection of Econometrics,” Review of Economics and Statistics, August 1952.

G.H. Orcutt, “Actions, Consequences, and Causal Relations,” Review of Economics and Statistics, November 1952.

Klein [4, Ch. I].

 

2. IDENTIFICATION

The problem of determining parameters of a system of structural equations given the parameters of the reduced form equations.

Koopmans, “Identification Problems in Economic Model Construction” [3, Ch. II].

Klein, [4, Ch. III, Sec. 3].

Simon, “Causal Ordering and Identifiability” Klein, [3, Ch. III].

Koopmans and Reiersøl, “The Identification of Structural Characteristics,” [C.C.P. no. 39]

Koopmans, Rubin, and Leipnik, “Measuring the Equation Systems of Dynamic Economics,” [6, Ch. II, Sec. 3].

Hurwicz, “Generalization of the Concept of Identification” [6, Ch. IV].

 

3. ESTIMATION

Point estimation of reduced-form parameters and structural parameters; statistical independence of observations in time series and cross-section data; assumptions of normality in joint distribution of disturbances; principles of estimation; maximum likelihood, limited information, least squares.

Klein [4, Ch. III].

Koopmans and Hood, “The Estimation of Simultaneous Linear Economic Relationships,” [3, Ch. VI].

Koopmans, Rubin, and Leipnik, “Measuring the Equation Systems of Dynamic Economics,” [6, Ch. II, Sec. 3].

Haavelmo, “Methods of Measuring the Marginal Propensity to Consume,” [3, Ch. IV].

Girshick and Haavelmo, “Statistical Analysis of the Demand for Food,” [3, Ch. V].

Anderson and Rubin [C.C.P., No. 36].

D. Cochrane and G.H. Orcutt, “Application of Least Squares Regression to Relationships Containing Auto-Correlated Error Terms,” Journal of the American Statistical Association, March 1949.

G.H. Orcutt and D. Cochrane, “A Sampling Study of the Merits of Autoregressive and Reduced Form Transformations in Regression Analysis,” Journal of the American Statistical Association, September 1949.

Anderson and Anderson [C.C.P. No. 42].

Klein [4, Ch. V].

F.N. David and J. Neyman, “Extension of the Markoff Theorem on Least Squares,” Statistical Research Memoirs, Volume II, December 1938.

T.W. Anderson, “Estimation of the Parameters of a Single Equation by the Limited-Information Maximum-Likelihood Method” [6, Ch. IX].

Chernoff and Rubin, Asymptotic Properties of Limited-Information Estimates Under Generalized Conditions,” [3, Ch. VII].

Jean Bronfenbrenner, “Sources and Size of Least-Squares Bias in a Two-Equation Model,” [3, Ch. IX].

 

4. VERIFICATION

Interval estimation and testing of hypotheses.

Klein [4, Ch. 3, Sec. 6].

Haavelmo [2, Ch. IV].

Carl Christ, “A Test of an Econometric Model for the United States, 1921-1947,” [7, pp. 35-129].

Anderson [C.C.P. No. 50].

Tinbergen [10].

 

5. PREDICTION

Conditional and unconditional prediction; relationship between prediction and policy.

Klein [4, Ch. VI].

Haavelmo [2, Ch. VI].

Hurwicz, “Prediction and Least Squares,” [6, Ch. VI].

Tinbergen [11].

REFERENCES

1. PRINCIPLES

Books and Monographs:

[1] Frisch, Ragnar: Statistical Confluence Analysis by Means of Complete Regression Systems, Oslo, Universitets Økonomiske Institut, 1934.

[2] Haavelmo, Trygve: “The Probability Approach in Econometrics,” Econometrica, Vol. 12 (Supplement), July 1944.

*[3] Hood, Wm.C., and Koopmans, T.C., (ed.): Studies in Econometric Method, Cowles Commission Monograph No. 14, New York, Wiley, 1953.

*[4] Klein, L.R.: A Textbook of Econometrics, Evanston, Illinois, Row, Peterson and Co., 1953.

[5] Koopmans, T.C.: Linear Regression Analysis of Economic Time Series, Haarlem, De Erven F. Bohn N.V., 1937.

[6] Koopmans, T.C. (ed.): Statistical Inference in Dynamic Economic Models, Cowles Commission Monograph No. 10, New York, Wiley, 1950.

[7] National Bureau of Economic Research: Conference on Business Cycles, New York, 1951.

[8] Stone, Richard: The Role of Measurement in Economics, Cambridge University Press, 1951.

[9] Tinbergen, Jan: Econometrics, Philadelphia, Blakiston, 1951.

[10] Tinbergen, Jan: Statistical Testing of Business Cycle Theories, Geneva, League of Nations, 1939.

[11] Tinbergen, Jan: On the Theory of Economic Policy, Amsterdam, North-Holland Publishing Co., 1952.

[12] Tintner, Gerhard: Econometrics, New York, Wiley, 1952.

Cowles Commission Papers (New Series):

No. 36. T.W. Anderson and Herman Rubin, Two Papers on the Estimation of the Parameters of a Single Equation in a Complete System of Stochastic Equations, Annals of Mathematical Statistics, Volume 20, 1949 and Volume 21, 1950.

No. 39. Olav Reiersøl and Tjalling C. Koopmans, Three Papers on Identification Problems, Psychometrica, Volume 15, 1950; Annals of Mathematical Statistics, Vol. 21, 1950; and Econometrica, Vol. 18, 1950.

No. 42. R.L. Anderson and T.W. Anderson, “Distribution of the Circular Serial Correlation Coefficient for Residuals from a Fitted Fourier Series,” Annals of Mathematical Statistics, Volume 21, 1950.

No. 50. T.W. Anderson, “Estimating Linear Restrictions on Regression Coefficients for Multivariate Normal Distributions,” Annals of Mathematical Statistics, Volume 22, 1951.

 

2. APPLICATIONS

Klein, L.R.: Economic Fluctuations in the United States, 1921-1941, Cowles Commission Monograph No. 11, New York, Wiley, 1950.

Schultz, Henry: The Theory and Measurement of Demand, Chicago, University of Chicago Press, 1938.

Wold, Herman: Demand Analysis; A Study in Econometrics, New York, Wiley, 1953.

 

3. SUGGESTED STATISTICAL REFERENCES

Mood, A.M., Introduction to the Theory of Statistics, New York, McGraw Hill, 1950.

Kendall, M.G.: The Advanced Theory of Statistics, 2 vols., London, Charles Griffin and Co., 1943, 1946.

Wilks, S.S.: Mathematical Statistics, Princeton, Princeton University Press, 1947.

 

Source: Harvard University Archives, Syllabi, course outlines and reading lists in Economics, 1895-2003, Box 6, Folder “Economics 1953-1954, (2 of 2)”.

Image Source: September 1961 entry card for John Somerset Chipman (b. 28 June 1926 in Montreal).  Rio de Janeiro, Brazil, immigration Cards, 1900-1965 at ancestry.com.

 

Categories
Exam Questions Harvard

Harvard. Undergraduate General Examination in Economics, 1957

 

Other undergraduate Harvard divisional/departmental general exams that have been transcribed and posted earlier:

General Division Exam 1916

General Division Exam 1917

Division Exams 1939

Economics General Exam 1953

Economics General Exam 1956

______________________

HARVARD UNIVERSITY
DEPARTMENT OF ECONOMICS
GENERAL EXAMINATION
[May 2, 1957]

(Three hours)

Please be sure to use a separate bluebook for each Section, noting on the cover of each book the numbers of the questions discussed therein, and HONORS or NON-HONORS.

PART I
(One hour)
Economic Analysis

All candidates answer ONE question.

  1. During the 1930’s many economists claimed that the economy was stagnant because of the high rate of saving. Today many of the same economists are claiming that an even higher rate of saving is essential for rapid economic growth. Are these pronouncements consistent? Explain your answer.
  2. A famous economist has claimed that: “Perfect competition is not only impossible but inferior to monopoly and oligopoly from the viewpoint of long-term economic progress.” Comment on the relationships between different forms of competition and economic progress.
  3. “The principle goals of domestic economic policy are a) maintenance of full employment, b) price stability, c) growth of real income, d) efficient utilization of resources, e) equitable distribution of income. Measures aimed at the achievement of one of these goals may impede progress toward others.” Discuss, in the light of that statement, some of the problems of expenditure, monetary, and tax policy.
  4. Classical, neo classical, Schumpeterian, Keynesian, and post Keynesian economists differ widely concerning what they consider to be the major factors governing the behavior of entrepreneurs with respect to investment decisions. Discuss the views of these authors on this matter and indicate your own views in the light of that discussion.
  5. In what sense can it be said that perfect competition leads to optimum allocation of resources?
  6. Socialists have always advocated “production for use instead of production for profit.” What are the sources of profits and how do different types of profits aid or hinder the efficient operation of the economic system?

 

PART II
(Two hours)

All students are required to choose TWO of the four fields in Part II of this examination and to answer TWO questions in each selected field. Thus a total of four questions are to be answered in Part II with an allowance of a half hour per question.

A. Industrial Organization

  1. Describe briefly the market structure of some specific oligopoly industry. How does the behavior of a typical firm in that industry differ from what it would be under (a) pure competition, and (b) monopoly?
  2. If the patent system did not already exist, it would be necessary to invent it; and it would best be invented in more or less the same form as it now exists. Do you agree? Discuss.
  3. The recent development of trucking has radically changed the position of the railroads; it no longer makes sense to view them as a natural monopoly industry. Rate regulations and all that goes with them should be abandoned, and free competition among all carriers should be allowed to govern prices and service. Discuss.
  4. The only purpose which the Robinson-Patman Act serves is the protection of more costly channels of distribution from the competition of more efficient ones. It should be repealed, and distributive markets made subject to Sherman Act standards of competition. Discuss.

 

B. Labor Economics

  1. “I venture the estimate — which may be mistaken — that collective bargaining has accomplished more in this area of the workers’ human rights on the job than it has in raising real wages faster than they would have risen without it. And union pressure has presumably been one of a complex of factors leading to a growing realization on the part of employers that the safeguarding of such rights of the workers is an essential part of their function.” (J. M. Clark, Economic Institutions and Human Welfare, 1957, p. 135). Do you agree or disagree with this judgment? What facts and argument can you develop to support your position?
  2. “It is of the essence of a union that it holds up considerations of fairness, health, security, etc., as against the requirements of the market, of efficiency and of profit maximization.” (Adolf Sturmthal, Ed., Contemporary Collective Bargaining in Seven Countries, 1957, p. 327). Discuss this analysis of the impact of the union and its conflict with the requirements of the market.
  3. “The regular annual rounds of wage increases have been mainly responsible for keeping up the steam under prices. As things look today, wages are the key to the inflation problem.” Henry C. Wallich, “Perils in the Inflation Psychology”, New York Times, Magazine Section, January 20, 1957. Do you agree with the judgment of Professor Wallich?
  4. Unions may influence wages in the short run but in the long run wages, like any other price, are determined by the forces of supply and demand.

 

C. Economic History

  1. Did protective tariffs contribute to the industrial growth of the United States? Why or why not?
  2. Contrast the structural market development of the textiles, anthracite coal, bituminous coal, boot and shoe, and steel industries in the United States. Are any generalizations permissible from this experience?
  3. What are the implications of the so-called “managerial revolution” of the twentieth century for economic theory and policy?
  4. Evaluate the following statement: “Serious economic difficulties in American agriculture are indicated by the constant reduction in agriculture’s share in national income.”

 

D. Money and Finance

  1. “Inflation is caused by too much money chasing too few goods.” “The constant upward pressure on money wages exerted by trade unions is the cause of inflation.” Discuss both statements.
  2. Discuss the short run (two or three years) effect on Gross National Product and its components of an increase in government purchases of goods and services with no change in tax rates.
  3. It has been alleged that the Federal Reserve System’s tight money policy helped to slow down the boom of 1955-56. Discuss the ways in which the tight money policy may have influenced the rate of growth of demand during that period.
  4. Discuss the possible conflicts between measures for external equilibrium (i.e. in the balance of payments) and internal equilibrium (i.e. non inflationary full employment) under various exchange systems.
  5. Ideally, the budgetary process should result in an allocation of expenditures such that the marginal benefit of expenditures is the same in all fields and equal to the marginal cost of taxation. To what extent can this rule actually be applied? How could the Federal budgetary process be improved to promote adherence to this principle?

 

Source: John F. Kennedy Presidential Library. John Kenneth Galbraith, Personal Papers. Box 528. Series 5. Harvard University File, 1949-1990. Folder “Tutorials. 9/17/51-9/57.”