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Economics Programs Fields Harvard

Harvard. Report of Economics Department Visiting Committee. Brimmer, 1974

 

The first African American to have served as a governor of the Federal Reserve System  (1966-1974) was the Harvard economics Ph.D. (1957), Andrew F. Brimmer (1926-2012). Brimmer was a loyal alumnus who served his doctoral alma mater on the Harvard Board of  Overseers and as a member/chair of the visiting committee for the economics department

This post provides the 37 page text of the 1974 Visiting Committee Report on conditions in the Harvard economics department. The topics of radical economics, hiring, tenure and promotion, and the deep dissatisfaction of about half of the economics graduate students with Harvard’s Ph.D. curriculum are all covered in this fairly remarkable document.

_________________________

REPORT OF THE COMMITTEE TO VISIT THE
DEPARTMENT OF ECONOMICS

[Andrew F. Brimmer, Chairman (April 15, 1974)]

I. Introduction

General Impression: The Committee found the Department of Economics under a great deal of stress, and it left with considerable concern for its future effectiveness. The Committee observed some disagreements within the senior faculty, but the major division appears to be between the latter as a group and perhaps half the graduate students. The factors giving rise to this division are numerous and complex, but one element stands out above all others: a substantial proportion of the graduate students are convinced that the senior faculty has little interest in teaching them and is not concerned with their welfare. A strong sense of alienation pervades the Department, and the frustration is evident on the part of a significant number of nontenured faculty members as well as among graduate students. On the other hand, the undergraduate concentrators seem to be much more contented than they were a few years ago.

The Committee was deeply troubled about this state of affairs—because on previous visits it had found a far different situation. For example, in its Report for the academic years 1969-71, it concluded:

“…The Department of Economics is in excellent condition. In addition to first-class leadership and fine internal condition, it enjoys the best of reputations. Its graduate school received the top rating in the recent canvas made by the American Council on Education. As we were able to see for ourselves during the visitations, the standard of teaching is very high and the work produced impressive….” 1/

1/ “Report of the Committee to Visit the Department of Economics for the Academic Years, 1969-71,” November 22, 1971, Number Two, p. 7

Against that background, the condition of the Department at the time of the last visit was particularly disturbing. A significant proportion of the members had served on the Committee during previous visits, and they were able to compare the present atmosphere to that which prevailed on previous occasions. For them, the sharpness of the deterioration in attitudes and relationships within the Department was particularly distressing.

Having reported these pessimistic impressions at the very outset, it must also be stressed that the Department of Economics at Harvard remains at the very forefront of the economics profession, For instance, at the time of the Committee’s visit, a senior member of the faculty [Wassily Leontief] was absent—because he was in Europe to accept the 1973 Nobel Prize in Economics, thus joining two other colleagues in the Department [Simon Kuznets (1971), Kenneth Arrow (1972)] who have received this signal honor. In a number of fields (especially in Economic Theory and Econometrics), the Department is at or close to the apex of the profession. Its members are also conducting first-class work in most of the applied fields. Moreover, as discussed more fully below, the Department has appointed a number of committees to re-examine its program. The expected recommendations—if adopted—will undoubtedly correct some of the deficiencies noted in this report. Thus, while economics at Harvard is going through a number of strains, it is by no means on the edge of dissolution.

The Visitation: The Committee met in Cambridge on the evening of December 10 and all day December 11, 1973. Fifteen of the 20 members of the Committee were present for all or a substantial part of the visit. An agenda identifying the main topics to be covered—along with supporting material—had been distributed in advance.

The issue of “Radical Economics” at Harvard was a matter of considerable interest to a number of Committee members, and several had requested that it be given a high priority on the agenda. Reflecting this interest, a number of contemporary items of information were circulated. In addition, an excerpt, “Much Ado About Economics,” from James B. Conant’s My Several Lives, was sent to Committee members. In this chapter, Dr. Conant discussed the controversy evoked by the report of the Committee which visited the Department of Economics in 1950. In its public report, the Committee (through its chairman) criticized the Department for a lack of “balance with respect to the viewpoints of its members.” In essence, The Committee at that time found that the Department had a number of “Socialists,” “Keynesians,” and “advocates of Government control of the economy”; but it found no one on the faculty with opposing views. It concluded that the situation should be corrected. The criticism against the Department which attracted the present Committee’s interest was the charge that political bias on the part of senior members of the faculty influenced the decision not to give tenure to one or more younger members identified as “radical economists.” So, while the specific facts were different, the basic issues were quite similar.

Several other specific issues had been identified in advance, and one or more members of the Visiting Committee had been asked to take responsibility to see that they were not overlooked. Among these were: (1) the quality of undergraduate teaching; (2) the quality of instruction in the first-year graduate courses, and (3) the Department’s affirmative action program.

During its visit, the Committee met separately with representatives of the tenured and non-tenured-faculty. It also met separately with undergraduates. The Committee was invited to a specially-called meeting of the Graduate Economics Club, and a number of faculty members also attended. Several of the Committee members also attended some of the classes which were then in session. On the basis of these contacts, the Committee formed a number of impressions and reached a number of conclusions. These are discussed in the following sections. The Committee also made several suggestions to the Department, and some of these are indicated in the text. Finally, the Committee weighed several recommendations, but agreement could not be reached on some of them. The outcome of that discussion is reported in the final section of this report. At the Chairman’s request, several of the Committee members prepared written accounts of their impressions, and others communicated orally with him following the visit. The Chairman drew extensively on these accounts — as well as on notes taken during the visit — in the preparation of this report.

 

II. Structure of the Department

The Department of Economics at Harvard is a fairly large organization. As shown in Table 1, there were 132 persons holding appointments in the Department during the 1973-74 academic year. Fifty-two of these had primary appointments in the Department, and seven held joint appointments with other units of the University. Three were visitors from other institutions. There were also 70 teaching fellows all of whom were graduate students. There were also 11 persons from other faculties offering instruction in the Department. Four of these had their primary appointments in the Kennedy School and two in the Business School.

Table 1. Faculty of the Department of Economics
Academic Year, 1973-74
Economics Faculty Other Faculty Offering Instruction
Professional Chairs 10 Kennedy School
Professors 10 Professors 2
Associate Professors 6 Associate Professors 1
Assistant Professors 14 Lecturer 1
Lecturers 12 Sub-Total 4
Sub-Total 52
Joint Faculty Business School
Professors 5 Professor 1
Assistant Professors 2 Assistant Professor 1
Sub-Total 7 Sub-Total 2
Visiting Faculty Other Schools
Professor 2 Professors 3
Lecturers 1 Associate Professors 2
Sub-Total 3 Sub-Total 5
Total 62 Total 11
Teaching Fellows 70
Grand Total 132

The size of the Department has been fairly stable in recent years — following a noticeable expansion during the first half of the 1960’s. For example, in the Fall of 1959-60, there were 55 members; by the Fall of 1966-67, there were 118. So the 132 in the Department during 1973-74 represented a gain of 12 per cent over the last seven years. It should be noted, however, that all of the members reported do not devote full time to the Department. The average teaching fellow spends about one-third of this time in the classroom while the remainder is devoted to research (primarily in the preparation of dissertations). Most of the Assistant Professors teach roughly half time and are involved in some variety of research for the remainder. Those members holding joint appointments are also engaged in on-going research for a significant part of their work load. Finally, during any given period, a number of the members will be on leave to pursue independent projects. For the 1973-74 academic year, eight faculty members were scheduled to be on leave for the full year. Three others were to be absent in the Fall term and four others during the Spring. A number of faculty members also had reduced teaching loads because they had bought off a fraction of their time via research grants. The figures in Table 2 show the number of faculty members on a full-time equivalent basis for each rank.

As indicated in Table 3, roughly half of the Economics Department’s faculty (excluding teaching fellows) have tenure. However, quite contrary to the impression frequently gotten by casual observers—the tenured members of the Department carry a sizable share of the teaching load at both the undergraduate and graduate levels. Moreover, as shown in Table 4, the proportion of undergraduate courses taught by the tenured faculty has risen significantly over the last ten years. In contrast, the proportion of graduate courses taught by the senior members has declined somewhat. During the 1972-73 academic year (not shown in Table 4), tenured faculty taught 20 of the 36 undergraduate courses offered. There were 18 tenured members in residence during the year, and 16 of them taught at least a one-semester course offered primarily for undergraduates. Moreover, all of them were available to advise on theses and to supervise independent work. Nevertheless, teaching fellows still carry a significant share of the total teaching load in the Department.

Table 2. Number of Economics Faculty Members on a Full-Time Equivalent Basis,
By Rank
Academic
Year
Full
Professors
Assoc. & Ass’t. Professors Lecturers Teaching
Fellows
1973-74 15.75 11.05 4.25 2.6
Est. for 1974-75 14.25 12.00 2.00 19.1

 

Table 3. Tenure Status of the Economics Faculty
Academic Years 1970-71 and 1971-72
Academic
Year
Total
Faculty
Tenured Professors Non-Tenured Professors
Number Per Cent Number Per Cent
1970-71 71 29 41 42 59
1971-72 53 25 47 28 53

 

Table 4. Number of Economics Courses Taught, By Status of Faculty,
Selected Academic Years
Term and Status
of Faculty
Number of Undergraduate Courses
(Exc. Junior & Senior Tutorials)
Number of Graduate
Courses
1953-54 1962-63 1971-72 1953-54 1962-63 1971-72
Fall Term
Tenured 6 8 14 23 25 25
Non-Tenured 8 6 11 5 5 12
Total 14 14 25 28 30 37
Tenured as per cent of total 43 57 56 82 83 68
Spring Term
Tenured 7 6 15 24 29 27
Non-Tenured 10 11 11 5 5 11
Total 17 17 26 29 34 38
Tenured as per cent of total 41 35 58 83 85 71

 

III. Trends in Enrollment

Undergraduates: The Department has continued to attract a substantial proportion of all undergraduates to its courses. For example, it is estimated that nearly half of all undergraduates were attracted at least to Economics 10—the introduction to economics. Fall term enrollment in this course in recent years is shown in Table 5.

Table 5. Fall Term Enrollment in Economics 10
Year Number Year Number
1965 774 1970 553
1966 828 1971 570
1967 734 1972 706
1968 732 1973 987
1969 535

These figures indicate that enrollment in the introductory course has surpassed the previous peak set in the Fall of 1966. In fact, while enrollment declined by over one-third between 1966 and 1969, the recovery in enrollment since the low point was reached amounted to more than four-fifths through the Fall of 1973.

The Department continues to attract about 7 per cent of all undergraduates as concentrators. Trends over recent years are shown in Table 6.

Table 6. Undergraduate Enrollment
Academic
Year
Number of Economics Concentrators
(3 years)
Per Cent of All Concentrators Harvard/
Radcliffe
Ratio
Course Enroll. Below 300 Level
(Student Sem.)
Economics as Per Cent of Arts & Sciences
1968-69 346 7.4 4.4 3,510 6.4
1969-70 292 6.4 5.5 3,437 6.4
1970-71 288 6.2 4.2 3,588 6.8
1971-72 301 6.4 4.5 3,542 7.0
1972-73 315 6.7 3.8 N.A. N.A.

These results have been achieved in the face of expanding competition from new concentration options offered elsewhere in Harvard and Radcliffe Colleges. The Department’s share of concentrators has been rising somewhat in recent years. However, it still remains well below what it was in the past-for example, 9.8 per cent in 1953 and 8.6 per cent in 1966. Moreover, economics continues to appeal substantially less to Radcliffe students than it does to those in Harvard College. Thus, the figures reported above suggest that men are about four times as likely to concentrate in economics as are women. This situation has existed for many years, and the presence of several women on the economics faculty seems not to have enhanced the Department’s appeal to women undergraduates. In the years ahead, the Department plans to place special emphasis on broadening enrollment of Harvard and Radcliffe undergraduates.

The figures presented above also show that the Department’s courses above the introductory (but below the graduate) level have been competing reasonably well in comparison with other undergraduate offerings.

Graduate Students: The figures in Table 7 show trends in graduate student enrollment and doctorates granted in recent years.

Table 7. Graduate Enrollment and Doctorates Awarded
Academic Year Graduate Students Doctorates Awarded
1968-69 159 28
1969-70 183 28
1970-71 171 33
1971-72 151 37
1972-73 161 28
1973-74 158

These data suggest that roughly one-sixth to one-fifth of the graduate students enrolled complete the requirements and receive the doctorate each year. As a rule, the typical Ph.D. candidate spends about two years taking courses and in other ways preparing for the generals examinations—normally taken toward the end of the second year. The next phase of the work involves the preparation of a dissertation and a special examination. The median time covered by this phase was in the neighborhood of 32 months for the group completing the Ph.D. degree in 1964-65, compared with 57 months for those doing so in 1954-55. Since the mid-1960’s, the median time probably has been shorted further.

As shown in Table 8, the range of specialization of those completing the Ph.D. in economics at Harvard continues to be quite wide. Among the various fields, however, Economic Development continues to be the most popular field. It accounted for about one-fifth of degrees granted during the four years shown. Money and Banking and Econometrics (the next most popular fields) each accounted for about one-tenth of the degrees awarded. Several of the traditional fields (such as Economic Theory, International Trade, Labor Economics, and Public Finance) each accounted for about 5 per cent of the total number of degrees. The emergence of several newer fields of interest—such as Urban Economics, Environmental Economics, and Socio-Economic Structure—should also be noted.

Table 8. Fields of Specialization of Ph.D. Recipients, Selected Years
Special Field 1965-66 1967-68 1971-72 1972-73
TOTAL 29 35 37 28
1. Agriculture 1 1
2. Chinese Studies 1 1
3. Comparative Economic Systems 1
4 Economic Development 4 12 6 6
5. Economic Growth 2
6. Economic History 1 2 3 1
7. Economic Theory 2 1 2 3
8. Econometrics 4 5 3
9. Environmental Economics 1
10. Health Economics 1 1
11. Industrial Organization 1 1 3
12. Input-Output Economics 2
13. International Trade 3 2 2 1
14. Labor Economics 2 2 3
15. Managerial Economics 1
16. Mathematical Economics 2 1
17. Money and Banking 1 3 4 4
18. Public Finance 2 2 2 1
19. Public Utilities 1
20. Regional Economics 1 2
21. Socio-Economic Structure 1
22. Soviet Economics 1 1
23. Statistics 1
24. Transportation 2 1 1
25. Urban Economics 4 2
26. Water Resources 1

 

IV. Departmental Atmosphere

As I have indicated above, the Committee encountered a greatly disturbed environment. One member of the Committee, who had participated in several previous visits, took special note of the strengths as well as the weaknesses within the Department:

“…As for the divisions in the department, the major one by far is between the senior faculty and about 50% of the graduate students. This is the problem that particularly distressed me, and the one which really threatens the future effectiveness of the department. There are, to be sure, disagreements within the senior faculty on issues dramatized by the decision (not to grant tenure to Professor Samuel Bowles). But I do not believe that — absent the unrest of the graduate students — they are beyond normal academic expectations or outside the capacity of the department for accommodation and compromise. Within the senior faculty there is still the civility and mutual respect needed for a functioning, self-governing department. I say this partly because I have recently visited another economics department where this condition does not obtain.

“The undergraduates seemed reasonably content with the program. …A minority of them are concerned about the loss of radical economists, but there was not as strong an undergraduate voice on this issue as might have been expected. As elsewhere, undergraduate radicalism is much weaker than it was five years ago.

“The complaints of junior faculty seemed to me much the same in kind and intensity as on previous visits. They have to do with the impersonality of the place, the lack of community, the inaccessibility of senior faculty, the division of the department into research empires which communicate very little with each other. In addition, junior faculty often express sympathy with the complaints of graduate students about the curriculum and the quality of instruction. At the same time, junior faculty do recognize the very great advantages of the Harvard environment for their own research and intellectual development. And they also participate with devotion and enthusiasm in the teaching programs of the department, and in the work of the various committees for curricular reform.

“The critical problem is the alienation of the graduate students. The most distressing thing is not that there are radicals among them, but that the general shortcomings of graduate instruction have alienated so many students of all persuasions. The radicals have evidently been able to capitalize on this discontent to make recruits among successive waves of students. Otherwise it is hard to understand how a movement which has waned rapidly in economics on other campuses and in other departments at Harvard continues to be so strong. It may also be true that some of the appeal of Bowles et. al. was that they cultivated a solicitude for students in contrast to the indifference perceived in “straight” faculty.

“In my own department radical dissent regarding the methodology of economics, the organization of our program, and the substance of economics has been expressed with emphasis but almost never with hostility and distrust toward the faculty as individuals or as an institution. So I found the tone of hostility and distrust at the Harvard (Graduate Economic Club) meeting very distressing. And of course I was quite impressed that about half of the graduate students were there, and that among them only one person said he was having a really good educational experience. I realize that the 50% present were not representative, but that’s a lot of students in itself and evidently the satisfied students didn’t have strong enough feelings to show up.

“The criticisms of first year courses are not new. We heard a couple of years ago that the theory course was a heavy dose of technical mathematics with no attempt at elucidation of basic economic content. Since then the course has shifted teachers again (frequent shifting is one of its problems), but remains a problem. It is much too large (maybe 80) for effective teaching. For the richest university, that is disgraceful.

“The general reputation of the senior faculty is that they are inaccessible, unapproachable, that they know and see only the few students who have gained access to their empires. No one serves for graduate students the functions performed by junior faculty for undergraduates, as teachers, advisers, tutors, friends. This really must be changed, even at some expense in research output and in outside activities of faculty. As things stand, I would not advise a bright … senior to go to the Harvard department unless he was of such a specialized interest and talent that he clearly could become a student protégé of one of the giants of the Harvard department.

“Perhaps the reduction in size of the graduate student body and the appointment of more non-tenure associate professors who will be active in graduate instruction will improve the situation. But that will not be enough. The senior faculty seems to me overly complacent about the situation, perhaps because they have been so close to it so long that they have forgotten what a decent and civilized community of faculty and graduate students is like.

“Unfortunately it will take time to recreate one at Harvard even if the faculty tries to do so. I don’t think it takes a drastic reformation of the curriculum so much as greater dedication to teaching, the use of smaller classes, assistants in first year courses, etc.”

Still another member of the Visiting Committee addressed himself to the atmosphere in the Department:

“…At the very outset, I think (one must not get) the impression of a deeper split within the senior faculty than actually exists. The division of opinion over Bowles involved only a small minority (not-by the way—a bloc that would hold together on many issues) and represented the sort of difference of opinion that any large faculty must expect to have. Had it not been for the size and intensity of the reaction from graduate students, nothing much would have followed from the Bowles decision. The real split in the department is between most of the senior faculty and a substantial fraction of the graduate student body. That, in turn, is a compound of radical dissidence and much broader student discontent with the teaching and conduct of the graduate program. The most striking aspect of the situation, in some ways, is how little the senior faculty seems to care. To give a clear picture of the department, I think (one must note) the contrast between the turbulence down below and the disaffection of some assistant professors on the one hand, and the fact that at the top things are really quite serene, large amounts of excellent research are getting done, and the faculty is justifiably pleased with its place and performance in the profession. That dichotomy is very important. The Overseers should realize that actions taken to fix some of the bad things may have unexpected effects on the good things…”

In a letter written following the visit, another member of the Committee also captured the essence of the prevailing conditions:

“… The distressing morale situation in the Economics Department shook me profoundly. I know enough to recognize the normal level of gripes in the special pleadings to which one is always open in such a situation, but the reactions of the various academic people on the Committee and that Law School professor at the (Graduate Economics Club) meeting confirm to me that things are really bad.

“…The argument about the radical professors probably pinpoints the entire problem, which is one of alienation between the tenured faculty (most of them, anyway) and all the rest of the department – faculty and students. There is a feeling that nobody cares…. Add to that the clear and unhappy failure to cope with the challenges it must meet (and perhaps was itself the cause of these problems), and the impatience and frustration of the younger people with the conventional … ‘received doctrine’ is only natural.

“…I have never heard the word ‘disappointment’ used so often. One shocking comment at the lunch with the non-tenured faculty was that, ‘It’s almost impossible to get a senior faculty person to read our research papers, but that’s easy in comparison with getting them to look at a reading list of a course we are preparing.’ The conscious and persistent rejection of discussion or Socratic teaching techniques in the classroom is hardly the proper way to help students to master a complex and essentially analytical rather than descriptive subject.

“The contrast with my days as an undergraduate is striking. We knew, took classes with, and spent time with all the great stars of our time—Hansen, Williams, Schumpeter, Mason, Leontief, Chamberlin, Haberler, Machlup, etc. All but the largest classes were full of active discussion and argument. The younger faculty was in ferment about Keynesianism and was just jamming it down the throats of the older faculty—who listened, argued, and clarified. I have never stopped going back to my class notes or the annotations in our books. The whole thing has never lost its relevance, fascination, or utility over the … years. This is what Harvard should do and must do to justify its reputation and importance, but that is precisely what it is not doing now.”

One member (who has visited the Department on several other occasions) focused on another impression shared by a number of others on the Committee. Following the visit, he wrote:

“…For the first time (in several years of) visitations (they were annual prior to the recent innovation)…I feel that the department is in great need of leadership. This conclusion is the result of a number of factors. Among them:

“1. While the department is unquestionably the finest in the country, the aura of leadership stems primarily from research activities. Teaching is another and a considerably spottier story. While the samples we observed were highly selective, they were not good.

“2. The furor over the radical economists does not seems to me to be related nearly as much to the facts as to the way in which the situation has been handled. That Harvard is alone among all universities in being in this position would tend to support this conclusion.

“3. The Harvard Economic Research Institute was a device for channeling research funds to the department. It has been allowed to run down completely. As much as faculty members may like the idea of additional funds being available, there seems no plan for replacing this source. Without such a plan and organized approach, it seems unlikely to me they will be replaced.

“4. I gather Ed Mason’s international activity is about to go out of business. I do not know the full story.

“5. The feeling persists among students (and this is not new) that the Economics Department lacks a ‘personality’ and interest in the student as an individual. As a result, they feel ‘at sea’.

“6. The impression I had from the students, at least, is that the number of socially relevant policy courses is limited (probably wrong) and that it is only the radical economists who are interested in teaching them (probably also wrong) and that these are the kinds of subjects on which students want to spend their time (with which I completely sympathize). If the students are right, this is a bad state of affairs. The fact that this is their perception of reality also seems to me a poor state of affairs.

“I am sure that each of these has its rationale and history. Yet, however much each requires the kind of careful handling one normally associates with management of professional staffs, none of these situations is necessary. Taken together, they worry me. My impression is that if we had time to study the issues truly important to the department’s future, we might well find they lacked the kind of forceful handling they should have….”

The assessment of the Department by a new member of the Committee was as follows:

“…My impression of the concern expressed by both the undergraduate and graduate students was threefold: (1) radical economics; (2) ‘relevant’ courses; and (3) a demonstrated concern for and interest in teaching and students. It seemed that the ‘radical’ economists were lecturing on topics of great interest to the students and were good, concerned teachers. Thus, I would like to emphasize that the Department not only broaden its course offerings but make evident, in a visible, systematic and continuing fashion that a priority function is teaching undergraduates and graduates…”

Again, it must be emphasized that the Committee’s exposure was necessarily short, and it may not have gotten a fully rounded picture of the prevailing situation. On the other hand, the fact that Committee members who have seen the Department over several years got the same impression must be given a great deal of weight.

 

V. Undergraduate Instruction Program

The Committee encountered few criticisms with respect to the undergraduate program offered by the Department of Economics. This was in noticeable contrast to the situation just a few years ago. At that time, students complained about the quality of tutorial programs and the lack of an opportunity to pursue joint majors with other substantive fields. During the 1972-73 academic year, the Department greatly expanded the amount of instruction provided on an individual or small group basis. As part of the initial effort, 20 sophomores received individual tutoring with highly favorable results. As a consequence, individual tutorial will become a permanent option — while group instruction will also be available for those students who prefer it. All concentrators have the option to participate in junior tutorial, and the option is being elected by an increasing number of such students. A senior thesis workshop has been in operation for more than a year. This program (led by a senior faculty member) provides an opportunity for seniors pursuing honors to explain and defend their research proposals well in advance of the March date on which the theses are due.

For the last few years, the Undergraduate Instruction Committee (UIC) has circulated questionnaires in all undergraduate courses in Economics to permit students to evaluate each course. The questions have focused on matters such as (1) the lecturer’s ability to hold interest; (2) overall evaluation of lectures; (3) overall evaluation of reading material; (4) helpfulness of sections; (5) preparation of section leaders; (6) fairness in grading; (7) attainment of initial expectations, and (8) overall impression of course. Each of these elements is rated on a scale of 9 for excellent, 7 for good, 5 for average, etc. The mean evaluation of undergraduate courses (weighted by enrollment) taught in the Fall term of 1971-72 was 6.65. (The standard deviation was 1.63) The highest score was achieved by junior tutorial groups, and several intermediate lecture courses followed fairly closely behind. A rough summary of the students’ evaluation of courses taught in the academic year 1972-73 (unweighted by enrollment) suggests that the overall assessment was about the same as in the previous year.

During the Committee’s visit, however, representatives of the Undergraduate Instruction Committee made two recommendations affecting the undergraduate program. The first related to the procedures of the Faculty Subcommittee on the Undergraduate Curriculum. The UIC expressed apprehension over the possibility that the Faculty Subcommittee might recommend major changes in the objectives and curriculum of the Economics Department without providing an ample opportunity for economics concentrators to discuss the proposals. The UIC strongly urged against such a course. After meeting with UIC, members of the Visiting Committee reported this concern to the chairman of the Faculty Subcommittee and were assured that no definitive action would be taken without proper consultation with undergraduate concentrators.

The second recommendation concerned the place of “radical” economics at Harvard. The UIC stated that:

“…it is clear to the committee that the Department of Economics should provide opportunities for undergraduate study in all major areas of economic theory. ‘Radical’ (Marxist) economic theory, as taught by Professors Bowles, Gintis, MacEwan, and Marglin, is a major alternative to neoclassical economic theory. The possibility exists that none of these faculty members will be teaching at Harvard during the academic year 1974-75. In light of this fact, this committee urges that the Department of Economics make certain that “radical” professors of economics be present on the Harvard Department of Economics faculty for 1974-75.”

In assessing the status of the undergraduate program, a member of the Committee observed:

“…The undergraduate program seems to be in better shape, perhaps because some of the assistant professors and teaching fellows are, against all odds, devoted to teaching. It seems to me that there is a genuine issue to be faced in the (recommendation)…. I have only little sympathy for the notion that “radical” or Marxian economic theory deserves a major place in the curriculum. But I do think that a department that goes in one or two years from a complement of four actively teaching radicals to none is in grave danger of violating a legitimate expectation of continuity held by students. If any number of undergraduates were attracted into the field by the hope of doing some specifically “radical” courses and research, then it is perhaps unfair to them to withdraw that opportunity so suddenly. If that is the content of the UIC recommendation, I think there is merit in it. There may be a similar point to be made on behalf of graduate students.

The Visiting Committee assured the representatives of UIC that their recommendations would be included in its report.

 

VI. Graduate Instruction Program

The Visiting Committee heard the most vocal expressions of discontent from graduate students. The strident tone of these comments was new—even to persons who had been on the Committee for several years. In explaining the apparent sharpness of the changed environment, one must give weight to the observations made by the chairman of the Department of Economics: since the Committee did not meet during the 1972-73 academic year, it perhaps had not kept abreast of emerging graduate student attitudes. Moreover, when the Committee visited the Department during the last few years, the “radical” students had boycotted the Committee’s meeting with graduate students. This time they chose to participate in the discussion through the Graduate Economic Club (G.E.C.).

In fact, the special meeting called by that organization (and to which the Committee and faculty members were invited) was the best session of the entire visit—at least in the opinion of several members of the Committee. The co-chairman of the G.E.C. had obviously worked hard to organize the meeting, and a substantial proportion of the graduate students enrolled participated. Three key issues were listed on the agenda: (1) the first-year program (including the Economic History requirement, theory courses, mathematics instruction, class size, and teaching quality); (2) curriculum content and the “firing” of radical professors, and (3) the structure and control of the Department. The presentations were crisp, and the discussion — while full — was highly focused.

The meeting took place against the background of considerable student unhappiness over the graduate program. One expression of that attitude is embodied in a long letter prepared by the Graduate Economics Club and addressed to entering graduate students. The opening section of that letter sets the general tone:

“The Graduate Economics Club is an organization open to all economics graduate students, whose purpose is to represent, and provide a forum for, the views of students in the department. We are writing to welcome you to the Economics Department. We only wish we could report that it was a more pleasant experience. In general, most of us have found that the first year at Harvard was the worst year of our lives. The teaching is often terrible, the professors distant and uninterested in new students. Many of us found that we were forced to work extremely hard at courses that were poor by any standard. The department makes little attempt to ease new students’ adjustment to Cambridge, so many entering graduates find the initial months are alienating and lonely. Student-faculty relations are often poor, in part as a result of academic and political disputes which have riven the department in the last three or four years.

“Harvard can be a very exciting place to work. Cambridge is a lively, stimulating city: the intellectual and cultural resources available here are extremely broad ranging. Once they come to know the department and the city, most students find Harvard an enjoyable place to study. It is largely the first few terms here that prove so difficult. In an effort to make the first year somewhat better for you than it was for us, a fair number of students have discussed how we might have treated our first year here differently. This letter is an attempt to condense what we now that might help you. Not all of us agree with all of what is included, but most of us agree with most of it….”

The letter then took up three main subjects: (1) the formal academic requirements and the older students’ collective judgment as to the best way to handle them; (2) housing and living arrangements, and (3) an account of the “political” conflicts evident in the Department of Economics in the last few years. The first and third of these subjects were also dominant themes of the G.E.C.’s meeting in which the Visiting Committee participated.

The formal requirements for the Ph.D. established by the Department of Economics specify that candidates must pass examinations in five fields: Economic Theory, Economic History; Quantitative Methods, and two “special” fields chosen by the student. By long-standing practice, many students “write-off” the Economic History and Quantitative Methods requirements by taking specified courses. An additional requirement is enrollment in one working seminar in which a paper must be prepared.

These requirements—and the way in which they have been administered—have engendered numerous complaints by graduate students. In response, the Graduate Instruction Committee was instructed by the faculty of the Department of Economics to review a number of aspects of the doctoral program and to recommend improvements. Six curriculum review committees (which included student members as well as both tenured and non-tenured faculty) were established for this purpose. These were: (1) Committee on the Structure of the Doctoral Program and Examinations; (2) Committee on the First-year Program; (3) Committee on Economic Theory and its History; (4) Committee on Economic History; (5) Committee on Special Fields, and (6) Committee on the Relations Between the Economy and Society. The Graduate Instruction Committee prepared several memoranda to give guidance to the various review committees and to identify the main issues and questions on which it was hoped the latter would focus. At the same time, however, it was made clear that the review committees should not feel constrained by such memoranda but should feel free to define the scope of their own deliberations and recommendations. The key issues on which the committees were urged to focus are summarized in Appendix I to this report.

It was thought unnecessary and unduly complicated to require formal coordination of the work of the various review committees. However, consultation among them was encouraged. This was especially true of the committees dealing with the structure of the doctoral program and relations between economics and society. Most of the committees were asked to report during the Fall term. The tasks were well underway at the time the Visiting Committee was at Harvard, and the Department expects to consider the various recommendations before the end of the 1973-74 academic year. It was generally expected that significant changes will be recommended in several of the areas under review.

 

VII. Controversy over Radical Economics

As indicated above, the debate over Harvard’s receptivity to the presence of “radical” professors on the faculty and the inclusion of “radical economics” in the curriculum held a great deal of interest for members of the Visiting Committee. Background material on the subject had been shared with committee members in advance, and a considerable amount of time during the visit was spent on the issues involved.

To put the matter in perspective, it might be well to summarize the emergence of the debate in the Economics Department in recent years. Apparently in the mid-1960’s, a number of younger faculty members and graduate students concluded that conventional training in economics (in which Harvard was in the forefront) did not address most of the social problems of the day which they thought important. Acting on this conviction, they began to work within the Department for a reform of the curriculum. Some of the senior faculty members were sympathetic with these goals. Partly as a result of these efforts, students were added to the Graduate Instruction Committee (G.I.C.)—first two students and then three on a committee of 13 members. Evidently these changes did little to resolve the student’s discontent. It is reported that recommendations by the G.I.C. favorable to students were not endorsed by the faculty as a whole.

In the generally unsettled atmosphere at Harvard during 1969-70, graduate student protest over the economics curriculum also rose considerably. To meet the criticism, the form of the general examination requirements was relaxed somewhat. Yet, many students still found the content of the curriculum unsatisfactory. Again, it seems that some faculty members (not all of them without tenure) shared this feeling. By the Spring of 1971, this continuing disappointment led to the Graduate Economics Club (GEC) to pass “…a resolution calling for full democratization of the economics department. As the first steps towards implementation the GEC demanded equal representation on the Graduate Instruction Committee and the non-tenured faculty committee….” The faculty (after what was apparently a vigorous debate) turned down these propositions in late March, 1971.

In the wake of this outcome, discussions were held among small groups of students and faculty which focused on the general examination requirements and on the graduate program generally. One of the committees formed at that time addressed itself to the role of “socio-economic structure” and Marxist theory in the curriculum. These two subjects were later approved by the faculty (in the Spring of 1971) as special fields in the Ph.D. program. However, no major changes were made in the content of the generals examinations, and no commitment was made to invite any Marxist economists to join the permanent faculty. Also in the Spring of 1971, the student representatives left the Graduate Instruction Committee—protesting what they considered token representation and lack of influence. Finally, in the Fall of 1971, the Graduate Economics Club adopted a resolution specifying that “… a Marxist theorist shall be hired to teach a curriculum in Marxist theory, to begin no later than the Fall of 1972….”

The faculty made no immediate response to this resolution. However, the issue came into sharp focus during the early months of 1972. At that time, a debate got underway over the question of the tenure of Associate Professor Samuel Bowles—a question which the Department had to answer by the end of the calendar year. The term appointment of Assistant Professor Arthur MacEwan was also moving to the stage at which a decision with respect to his future status would have to be made by the same deadline. These two men were viewed by the students as “…the last two remaining non-tenured radical faculty members….” A campaign to win tenure for them was launched by both undergraduate and graduate students. As part of this effort, a petition urging that they be retained and that more radical economists be brought to Harvard was circulated in the Spring of 1972. More than 700 persons signed the petition. In the Fall of that year, a substantial proportion of Professor Bowles former students (reportedly 75 per cent of them—virtually all of those who could be reached) orally or in writing supported the effort to obtain tenure for him. But, after a long (and apparently sometimes divisive) debate, the majority of the Department voted against a tenure appointment for Professor Bowles. A few weeks later, Professor MacEwan’s term appointment was not renewed, and he was not promoted to Associate Professor. Previously two other “radial” economists (Herbert Gintis and Thomas Weisskopf) had failed to receive promotions.

Immediately, these decisions were attacked as “politically” motivated by many of the students and some of the faculty. These charges of bias were denied vigorously by members of the senior faculty. However, the reverberations of those actions reached well beyond the boundaries of Harvard University. For example, at the annual meeting of the American Economic Association (AEA) in Toronto in late December, 1972, a resolution was proposed condemning the action of the Harvard economics faculty. The chairman and other representatives of Harvard spoke against the resolution which was not adopted. However, a modified version was approved. It held that:

  1. The American Economic Association urges that hiring decisions in economics departments be free of political bias. The Association strongly condemns political discrimination in hiring decisions against radical economists or any others.
  2. The American Economic Association urges all departments to set up university procedures whereby allegations of discrimination on the basis of political differences can be systematically investigated.
  3. The American Economic Association strongly opposes discrimination in government grant allocation on the basis of political views.

As indicated above, strong voices were heard on both sides of the debate over the Bowles appointment. The formal view of the faculty majority was given by Professor James Duesenberry, Department Chairman, in his report covering the 1972-73 academic year:

“…Our pleasure…was marred by criticism, from students and others, of the department’s failure to recommend Associate Professor Samuel Bowles for a tenure appointment. The non-tenure associate professorship is a new rank at Harvard and Professor Bowles was the first person appointed to it and therefore the first to reach the time at which a decision as to a tenure recommendation had to be made. There was perhaps some misapprehension as to the likelihood of tenure appointments for associate professors. There are at present six associate professors and it is a source of regret that only a fraction of this extraordinarily able group of economists can be offered tenure appointments. In Professor Bowles’ case it was alleged that the Executive Committee’s decision was biased because of Professor Bowles’ ‘radical’ views. Since bias like beauty is in the eye of the beholder, that is a difficult charge to answer. I can only say that in my twenty years on the Executive Committee the primary consideration has always been the search for persons who could be expected to maintain and enhance the outstanding professional position of the department. Failure to recommend a particular associate professor for a tenure appointment is not an indication of bias unless it can be alleged that the person in question has scholarly abilities and accomplishments which are obviously superior to those of any other persons—at Harvard or elsewhere—who might be appointed.

“Alternatively it might be argued that ‘radical economics’ should receive more attention. The department already has one ‘radical’ full professor (appointed before his conversion to be sure, but here none the less). The amount of weight to be given to any subfield or approach in our discipline is always a matter of opinion and dispute, but it does not seem obvious that the accomplishments of the relatively new radical approach are so overwhelming as to outweigh the many other claims on our limited number of appointments….”

Several other senior faculty members who thought Bowles should have been given tenure—although their reasons differed—have also spoken on the issue. Professor Stephen A. Marglin (a member who was voted tenure before he began to identify with the “radical” economists) urged his colleagues to give Bowles a tenure appointment—and also to bring more radicals to Harvard. By so doing, he though radical economics would have a chance to develop. Professors Kenneth J. Arrow, John Kenneth Galbraith, and Wassily Leontief were also willing to give radical economics an opening: and they, too supported tenure for Bowles. Professor Arrow has been quoted as saying that Bowles’ appointment would broaden the Department, and he felt that his work was “good enough” judged by standard that “hardly had anything to do with radicalism.”

Partly as a response to this debate, Herbert Gintis (who was lecturing in the School of Education after he failed to win reappointment three years earlier) was invited back to the Department of Economics as an Assistant Professor, with the understanding that he would be recommended for promotion effective with the 1974-75 academic year. Beginning in September, 1974, Gintis and Bowles (along with two other “radical” economists — Stephen A. Resnick and Richard Wolff) will go as a team to the Economics Department of the University of Massachusetts at Amherst.1/With their departure, Stephen Marglin will be the only “radical” economist with tenure — in a Harvard community numbering more than 60 economists. Moreover, he is scheduled to be on leave for the 1974-75 academic year.

1/ Subsequent to the Committee’s visit, it was learned that Gintis may remain at Harvard. As this report was being written, the matter was still uncertain.

 

VIII. Continuing Controversy Over the Scope of Economics at Harvard

Aside from the debate over the role of radical economists at Harvard, a number of faculty members (both tenured and non-tenured) are concerned about the scope and content of the curriculum—and think it should be broadened considerably. The curriculum review committees discussed above were appointed for this purpose. Several tenure appointments will become available to the Department in the next few years, but opinions differ as to how they should be filled. The Department chairman, in his report covering the 1972-73 academic year, identified the fields of labor, industrial organization, economic development, and economic history as ones in which additional strength is needed.

More fundamentally, however, at least a few senior faculty members apparently believe that the differences in view with respect to the content of the economics program are so wide that a basic reorganization of the Department may be in order. So far, Professor Galbraith is the only one to express his views in writing. However, Professors Arrow, Albert Hirschman, Leontief, and Marglin are reported to have thought — during the Spring of 1973 — that the possibility of forming a new department or a separate track within the existing Department was worth exploration2/By late fall, Professor Galbraith (who chairs the Committee on the First-Year Graduate Program) had in circulation a proposal to establish an Experimental Program and Committee within the existing Department of Economics. If adopted, this program would provide students an alternative path to the Ph.D. paralleling the more traditional route. Under the umbrella of the new faculty Committee which would oversee the alternative route, appointments would be made and associated research would be conducted. Subject matter of interest to faculty and students working in the Committee’s area might include problems of the arts, discrimination, income maintenance, and poverty. Perhaps one-quarter of the graduate students might elect to pursue this new track. The proposal also visualizes that the committee would have the right to recommend appointments — tenure and non-tenure — about in proportion to its share of the teaching load (both undergraduate and graduate). While the Executive Committee of the Department would vote on such recommendations, there would be a broad presumption that the Committee’s recommendations would be accepted.

2/ A member of the Visiting Committee thought the report should note that this group of senior faculty “…is the group that supported Bowles, and that it is in fact a group that has very little else in common. Galbraith’s and Hirschman’s view of economics has very little overlap with Arrow’s and Leontief’s, and Marglin is his own kind of (man). This appears to more an alliance based on political attitude and temporary happenstance than a genuine current of thought.”

At the time the Visiting Committee was in Cambridge, this proposal had generated considerable reaction. It had apparently won strong support among some of the senior faculty as well as among the non-tenured group and graduate students. But it apparently had also encountered strong opposition — especially on the part of some of the tenured members. Since a version of the proposal will probably be submitted to the Graduate Instruction Committee this spring, the Department may have to vote on it before the end of the 1973-74 academic year.

 

IX. Affirmative Action Program

The Visiting Committee made a special effort to appraise the effort being made by the Department of Economics (in keeping with University policy) to recruit women and members of minority groups. The subject was discussed primarily with the Department Chairman, but other senior members of the faculty also contributed. The non-tenure recruitment procedures used during 1972-73 were described by the Department Chairman as follows:

“The Department of Economics normally plans to hire 4 or 5 assistant professors each year. In the 1972/73 recruiting season, the non-tenure appointment committee obtained names and short vitas of prospective new Ph.D.’s from over twenty leading departments of economics. Additional names were supplied to us on an informal basis by a number of smaller graduate departments. Members of the committees and other members of the department then contacted department chairmen, placement officers, and others to develop a shorter list of the outstanding prospects from this year’s Ph.D. crop. In making these inquiries chairmen and placement officers were pressed as to the availability of women and minority candidates. At the time of the 1972 Christmas meetings of the American Economics Association the “short list” included 40 names of which 6 were women. There were no minority candidates who seemed suitable for our department. At the AEA meetings members of our department interviewed all candidates on the short list who could be contacted, as well as others who requested interviews.

“On the basis of interviews and further correspondence with other universities, a number of candidates were included in these invitations. In the end five offers of assistant professorships were made and accepted through these procedures, of whom one was a woman. It may be worth noting that it was necessary for us to make a considerable effort to find a post for her husband at another university in the city in order to obtain the services of the one woman we have recommended for an assistant professor appointment.

“In addition to the appointments made through these procedures, we have recommended that two persons now holding lectureships in the university be appointed assistant professors. One of these is our head tutor who had been teaching in Social Studies but will now undertake an important teaching assignment in our department. In his case we feel that he should assume professorial status. Because of the importance of continuity in his post as head tutor, we have not considered any other candidates.

“A second appointment has been recommended for a lecturer in the School of Education who has previously taught in our department but who will now switch the bulk of his teaching from the School of Education to the Department of Economics.

“We have also recommended two associate professor appointments. One of these is to be promoted from assistant professor upon completion of his term. We had no women assistant professors reaching the review point this year. The other recommendation is for an appointment to associate professor in the field of labor economics as a stop-gap replacement for Professor Dunlop. An extensive search by a special committee did not reveal any women or minority candidates who could be seriously considered for this position.”

On balance, several members of the Visiting Committee thought that the Department’s procedures (while clearly aimed in the right direction) did not show the kind of vigorous effort required to achieve the Harvard goal. At least one academic member of the Committee thought that the Department’s efforts fell appreciably short of those made by several other institutions — which had also been much more successful in competing for an admittedly scarce supply of women and minority group economists.

Another member of the Committee, who had been asked to give special attention to the matter, observed as follows:

“…The first evening… we discussed … Affirmative Action Plan. But I had a strong feeling that it was a farce. The message seemed to be: Look how hard we’ve tried. We’ve done everything we could, but there simply aren’t any qualified women or blacks. As (another member) said to me informally, they really seem to believe women are inferior. This member of the Visiting Committee would urge a much stronger effort to recruit women at the assistant professor level so as to increase the number in the pipeline for higher level positions later….”

 

X. Concluding Observations

At the conclusion of its visit and after considerable discussion — the Visiting Committee decided not to draw up a list of specific recommendations. Instead, it chose to describe as fully as possible the situation it encountered in the Economics Department. It was assumed that the Harvard faculty itself is best suited to cope with its own problems.

On the other hand, several general observations should be made. In the first place, it was obvious to virtually every member of the Committee that the curriculum being offered by the Department of Economics is greatly in need of reformation.3/ The subject matter ought to be broadened to provide greater scope for students and faculty to work on problems — and search for solutions to them — that are not easily encompassed within the corpus of traditional economics as taught at Harvard. It was realized, of course, that the Department of Economics at Harvard is far less narrow than almost any other department in the forefront of the profession. Yet, a number of the men who have provided this broad thrust over the years have recently retired and others are scheduled to do so in the near future. Consequently, the Visiting Committee thinks it is vital that the upcoming opportunities to make tenure appointments be used to assure that Harvard’s historic concern for economic welfare (broadly defined) be kept alive in the years ahead.

3/ A member of the Committee noted that “…the Harvard curriculum is not atypical for university departments aspiring to high status in the profession’s pecking order. So it is a problem of the criteria by which the profession judges, not specifically of the Harvard Department. Nevertheless, there may be good reason for Harvard to assume some leadership in searching for a broader curriculum. Of course, there may be no good answer….”

The Visiting Committee refrained from expressing a judgment on the appropriateness of the decision not to give tenure appointments to specific members of the faculty identified as radical economists. The reason was simple: in the final analysis, the faculty itself has to decide who will be given status and the right to enjoy its privileges and carry on its responsibilities. On the other hand, the Committee feels strongly that “political” bias or other forms of discrimination should have no weight in judging candidates for tenure. Again, however, these judgments have to be made by the faculty.

But one member of the Visiting Committee also felt strongly that some kind of machinery should be created that would enable some outside body (perhaps even outside the University) to review faculty decisions in which those affected adversely feel they are the victims of discrimination — “political” or otherwise. Two or three other members of the Committee expressed some sympathy with this general view — although not necessarily with the specific elements outlined. On balance, however, the Committee decided not to endorse the proposition or transmit it as a recommendation. 4/ Nevertheless, everyone was sensitive to the difficult issues involved. Several members thought that the general position on political bias embodied in the resolution adopted by the American Economic Association (reported above) is one the Harvard Economics Department might well adopt as its own.

4/ The tone of the opposition to the proposal was captured by one member: “…I have my doubts about any proposal for outside review….Appointments may in fact sometimes be made on a discriminatory basis, and I would be interested in suggestions for protective machinery. I fear, however, that the solution mentioned here may be so open to abuse as to be worse than the problem. I wish I had a better alternative to suggest….”

The Committee was deeply impressed with the criticism of the graduate curriculum which it heard. For that reason, it was pleased to note the work now underway in the various review committees to reassess the program. It appears that a number of important recommendations will be made to the faculty — which if adopted could significantly enhance the appeal and usefulness of the program to graduate students. At the same time, it is also obvious that the senior faculty members in the Department must devote far more time directly to the education of the students who look to them for inspiration and guidance.

Finally, the Committee is convinced that a much greater — and far more systematic — effort should be made to seek out promising women and members of minority groups as potential faculty members. The Committee is under no illusions that this is an easy task. But, unless the Department’s procedures are revamped and more resources devoted to the assignment—it appears doubtful that the Department of Economics will make a significant contribution toward helping Harvard University achieve the goals established in its affirmative action program.

Andrew F. Brimmer
Chairman

April 15, 1974

*  *  *  *  *  *  *  *  *  *  *

APPENDIX I
SUMMARY OF ASSIGNMENTS OF CURRICULUM REVIEW COMMITTEES

[Incomplete]

As indicated above, the Department of Economics has established six curriculum review committees to work on the improvement of a number of aspects of the doctoral program. The principal guidance given to these task forces by the Graduate Instruction Committee is summarized below.

Committee on Structure of the Doctoral Program and Examinations: This committee “will be responsible for reconsidering the procedure whereby a candidate becomes a doctor of philosophy and is expected to contemplate if not to recommend very fundamental changes in the organization of the program.” Its mandate includes:

  1. Reconsideration of the length and chronology of the doctoral program.
    1. Currently the Economic Department expects candidates to take general examinations at the end of their second year and special examinations one and a half to two years later. What is the actual chronology in recent years? Is this norm sound, or should the Department develop a program of different length and segments?
    2. Should candidates be involved in teaching and research sooner than at present, say during the second year, although this may require some extension of the time devoted to preparing for the general orals?
  2. Consideration of possible course requirements. At present there are none (formally), but it may be advisable to require candidates to take a specified minimum number of courses for letter grades.
  3. Reconsideration of the offering of advanced courses and seminars. There are now a large number of advanced courses and seminars, many with small enrollments. Who takes these courses: second-year students, post-generals students, students from outside the Department? Would it suit the needs of the faculty and students better if some or all of them were replaced by less formal and more flexible tutorials, group or individual?
  4. Is the Department meeting the needs of post-generals students with respect to advanced instruction, stimulation, and guidance? How should that phase of the program be strengthened?
  5. Reconsideration of the role and concept of the thesis. Current legislation is intended to encourage theses that are more like a long paper or short monograph than like a comprehensive treatise, but this seems to be largely a dead letter. Which concept is sound, and how can it be implemented?
  6. Reconsideration of the final examination. For the last few years, the grading and conduct of the special examination have been separated from the acceptance and grading of the thesis. Has this change made the special examination a more useful educational experience than previously? Would other changes improve it further?
  7. Finally, is the graduate program properly attuned to the job market or the requirements for a career in economics? What kinds of jobs do Harvard graduates find, and have they been equipped properly for such jobs? Are any procedures needed for adjusting the program to meet the changing demands on economists?

This list of topics, though long and demanding, was not meant to be exhaustive. The committee was encouraged to feel free to raise questions of its own and to make recommendations about any aspects of the program.

 

Committee on the First-Year Program: Some matters and questions that this committee was asked to consider are:

  1. The efficacy and adequacy of the current procedures for advising first-year students.
  2. Whether the courses and programs now available to entering students provide enough flexibility in view of their widely varying levels of preparation and fields of interest. Is the first year concentrated excessively on the three required fields?

 

  1. [sic, “3.” apparently skipped over or omitted] Whether there is need for more information about the level and contents of graduate courses than is provided by the catalog listing and, if so, how to provide it. Are the current pamphlets about the general nature of the program and the degree requirements adequate? Indeed, should the organization and contents of the catalog listing being revised substantially?
  2. Is there need for additional physical facilities, in particular, for a common room?

 

Committee on Economic Theory and Its History: Some of the issues called to the committee’s attention are:

  1. Level of the requirement. At present the instructors and examiners in economic theory and its history do not have any guidance except vague traditions for determining the level of attainment to expect. It is somewhere between the acquaintance with fundamental concepts expounded in the intermediate undergraduate economic theory course and the highly technical proficiency (also vaguely conceived) expected of a candidate who offers advanced economic theory as a special field.
    A clear, and if possible, operational definition would be highly desirable. This task consists, really, of two parts: first, a policy decision on the appropriate level of advancement, and second, the discovery of a way to express that decision in clear and operational terms, perhaps a syllabus.
  2. The scope of the field. Just what topics are to be included in the field of economic theory and its history is nowhere laid down. It is not at all clear how much acquaintance the faculty expects candidates to have with the present of economic doctrine, either first-hand or second-hand. There is considerable disagreement about how much [… end of copy]

 

NOTE:  PAGES STARTING WITH A-5 ARE MISSING.

Missing are “(4) Committee on Economic History; (5) Committee on Special Fields, and (6) Committee on the Relations Between the Economy and Society.”

Source: John F. Kennedy Presidential Library. John Kenneth Galbraith Papers. Series 5. Harvard University File, 1949-1990. Box 527. Folder “Harvard Department of Economics Report of the Visiting Committee, 1975”.

Categories
Exam Questions Harvard Suggested Reading

Harvard. Readings and Exam for Business Cycles. Schumpeter 1949-50

Joseph Schumpeter died January 8, 1950. The final examination questions transcribed in this post come from an official printed collection of final examinations, so that it seems likely and certainly possible, given required lead times for printing, that these were among Schumpeter’s last questions for his students.

______________________

Course Enrollment

[Economics] 245a (formerly Economics 145a). Business Cycles and Economic Forecasting.
(F) Professor Schumpeter.

Total 31: 26 Graduates, 3 Seniors, 1 Public Administration, 1 Radcliffe.

Source: Harvard University. Report of the President of Harvard College, 1949-1950, p. 75.

______________________

Course Reading List

Economics 245a
Fall Term, 1949-50

This course will divide up into two parts: The first and smaller part will serve as a general introduction to the history, techniques, and bearings of business-cycle analysis and will be made longer or shorter according to the needs (or previous selected topics and give as much opportunity as possible for discussions and essays. Some knowledge of advanced theory and some training in statistics are necessary in order to reap full benefit from this course. Individual requirements will be taken care of in consultation.

  1. Books:

G. v. Haberler, Prosperity and Depression, 1941.

J. M. Clark, Strategic Factors in Business Cycles (National Bureau of Economic Research, 1934)

Readings in Business-Cycle Theory (Vol. II of the American Economic Association series of republished articles, Blakiston, 1944.

E.C. Bratt, Business-Cycle Forecasting (3rd ed., 1948; a textbook that may help less advanced students).

A.C. Pigou, Industrial Fluctuations, 1929.

E. Frickey, Economic Fluctuations in the U.S. (Harvard Economic Studies No. 73)

A.H. Hansen, Fiscal Policy and the Business Cycle, 1941.

Burns and Mitchell, Measuring Business Cycles (1946) (National Bureau).

F. C. Mills, Price-Quantity Interactions in Business Cycles, 1946 (Nat’l. Bureau).

  1. Articles:
    1. (a) H.L. Beales, “The Great Depression,” Economic History Review, October, 1934.
      (b) W.W. Rostow, “Explanations of the Great Depression,” Economic History Supplement to Economic Journal, February, 1940.
    2. (a) J. Tinbergen: “Suggestions on Quantitative Business-Cycle Theory,” Econometrica, 1935.
      (b) J. Tinbergen: Econometric Business-Cycle Research,” Review of Economic Studies, February, 1940.
    3. R. F. Harrod, “Imperfect Competition and the Trade Cycle,” Review of Economic Statistics, May, 1936.
    4. N. Kaldor, “A Model of the Trade Cycle, Economic Journal, March, 1940.
    5. (a) L.A. Metzler, “Business Cycles and the Modern Theory of Employment,” American Economic Review, June, 1946.
      (b) L.A. Metzler, “Nature and Stability of Inventory Cycles,” Review of Economic Statistics, 1941.
      (c) L. A. Metzler, “Factors Governing the Length of Inventory Cycles,” Review of Economic Statistics, February, 1947.
      (d) M. Abramowitz, “The Role of Inventories in Business Cycles,” National Bureau of Economic Research, Occasional Paper No. 26, May, 1948.

Source: Harvard University Archives. Syllabi, course outlines and reding lists in Economics, 1895-2003. Box 5, Folder “Economics, 1949-1950 (3 of 3)”.

______________________

1949-40
HARVARD UNIVERSITY
ECONOMICS 245a
[Final Examination. January, 1950]

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

  1. Discuss briefly the National Bureau method of measuring business cycles.
  2. Many authors have asserted that economic progress is “unstabilizing.” What does this mean precisely?
  3. Discuss briefly the main “price-quantity interactions in business cycles.”
  4. State, and give your opinion about the explanatory value of, the acceleration principle.
  5. “In a progressive economy, the rate of interest which stabilizes the price level is below the rate which keeps the flow of money incomes constant.” Explain and criticize.
  6. It is often asserted that agriculture is not an active element in business cycles. It is “the football of business.” Do you agree?

Source: Harvard University Archives. Papers Printed for Final Examinations [in] History, History of Religions, …, Economics, … , Military Science, Naval Science, February 1950 in Final Exams—Social Sciences, etc. Feb. 1940 (HUC 7000.28, Vol. 81).

Image Source:  Harvard Classbook 1947.

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Economist Market Economists Gender Harvard

Harvard. Galbraith suggests Barbara Bergmann for Women’s Studies Professorship, 1983

 

The departments of anthropology, english and psychology at Harvard appear to have been relatively quick to respond to the 1983 opportunity of hiring a professor in women’s studies. The Harvard Dean then wrote a memo to encourage other departments to come up with candidates as well. John Kenneth Galbraith put forward the name of Barbara Bergmann for the serious consideration of the department. Perhaps someone knows whether his suggestion was able to obtain any search traction?

___________________

HARVARD UNIVERSITY
Department of Economics

A. Michael Spence
Chairman

Littauer Center 200
Cambridge, Massachusetts 02138
(617) 495-2144

October 31, 1983

 

TO: Members of the Faculty, Economics Department

FROM: A. Michael Spence [Signed initials: AMS]

The attached is self-explanatory. Does anyone have ideas? Please let me know.

___________________

HARVARD UNIVERSITY
Faculty of Arts and Sciences

Office of the Dean

5 University Hall
Cambridge, Massachusetts 02138
(617) 495-1566

October 4, 1983

TO: Chairmen of the Departments of Classics, Comparative Literature, Economics, Government, History, Philosophy, and Sociology

FROM: Henry Rosovsky

RE: Tenured Position in Women’s Studies

Last spring, the Committee on Women’s Studies informally notified several departments of the opportunity to nominate a distinguished scholar in the area of women’s studies. The appointment would be made entirely within a department with the understanding that the individual would devote at least half of his or her teaching time to Women’s Studies and play an active role in the future development of teaching and scholarly activities in that area.

Several departments (Anthropology, English, and Psychology) have already reported active searches; some have advanced to the short list stage. If your department is interested in pursuing this opportunity, please let my office know as soon as possible. If you wish to nominate a candidate, you should write to me describing the candidate (and the search procedure), and indicating what advantages will accrue to the department and to the Women’s Studies program if the position is assigned to your department. I expect that an assignment will be made by the end of the calendar year unless there is some compelling reason to delay.

dmg

___________________

John Kenneth Galbraith
Harvard University
Cambridge

207 Littauer Center
November 10, 1983

Professor A. Michael Spence
Littauer 200

Dear Michael:

Would you think of Barbara Bergmann, now at University of Maryland? She is one of our Ph.D.s, a brilliant economist, articulate in written and oral expression and both deeply and intelligently concerned with women’s issues. When President of the AEA I established as you know the Committee on the State of Women I the profession. Barbara took an alert and effective part in its work. I have no thought as to her availability; I do urge that she be considered. It would be very good, indeed, to have her back.

Yours faithfully,
[signed]
John Kenneth Galbraith

JG/all

Source: John F. Kennedy Presidential Library and Museum. John Kenneth Galbraith Personal Papers. Series 5. Harvard University File, 1949-1990. Box 526. Folder: “Harvard Department of Economics: General, 1975-1988”

Image Sources:  Barbara Bergmann in a Center for the History of Political Economy at Duke University spotlight web post. John Kenneth Galbraith (22 Feb. 1982) at “Top Management Forum” in Hilton Hotel in Amsterdam. Wikimedia Commons, from the Dutch National Archives.

 

 

 

Categories
Exam Questions Harvard

Harvard. Examinations for Political Economy courses, Dunbar, Laughlin, and Taussig, 1886-87.

 

On January 5th, 2021 my 94 year old father passed away following a Covid-19 infection. On January 6th, 2021 a pro-Trump mob breached the United States Capitol, leading to the impeachment of President Donald Trump exactly one week later. With the exception of a single post that had been nearly completed before those two days, Economics in the Rear-view Mirror has had no new content added.  With today’s post (January 24, 2021) your curator resumes his work of collecting, transcribing and presenting artifacts to provide a documentary record of the evolution of the economics curriculum.

This post adds to our collection brief course descriptions, enrollment figures and examinations from Harvard for the academic year 1886-87 when Charles Dunbar, J. Laurence Laughlin, and Frank W. Taussig constituted the entire department of political economy. 

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Political Economy 1 (1886-87).

Class Enrollment.

Political Economy 1. First half year: Laughlin’s Mill’s Principles of Political Economy. —Dunbar’s Chapters on Banking. Profs. Laughlin and Taussig.

Total 207: 1 Graduates, 33 Seniors, 100 Juniors, 47 Sophomores, 7 Freshmen, 19 Others.

Source: Harvard University. Report of the President of Harvard College, 1886-87, p. 58.

1886-87.
POLITICAL ECONOMY 1.
[One-hour Examination. Nov. 17, 1886]

  1. Point out, as to the following articles, whether they are or are not capital; and, as to those which you consider capital, whether they are fixed or circulating capital: a dwelling-house; a bale of cotton goods; a government bond; hewn granite; a plow; a stock of tobacco.
  2. A keeps twenty saddle horses in Boston for hire. B keeps twenty horses which he uses in cultivating a farm in the country. Trace the respective economic effects of their expenditure in maintaining the horses.
  3. State concisely the laws of production and distribution as to land, and explain the connexion between them.
  4. Comment on the following proposition: “There should be annually appropriated by every city or town of 5000 or more inhabitants a sum of money sufficient to pay wages at the rate of one dollar a day for 300 days in the year to as many as 10 percent of the actual population. … Any person finding himself out of employment should have the privilege of making application to the Department of Labor, and should be given some useful work to do at the wages of one dollar per day of eight hours, so long as he might choose to work for that pay.”

Source:  Harvard University Archives. Scrapbook of Professor Frank W. Taussig, p. 10.

1886-87.
POLITICAL ECONOMY 1.
[Mid-Year Examination. 1887]

  1. Compare the economic effects of defraying war expenditure by loans and by taxation.
  2. Does the rent of a factory building affect the value of the goods made in it? Does the rent of a farm affect the value of the grain grown on it? Does the rent paid for a lot near a great city, from which gravel is taken, affect the value of the gravel?
  3. It has been said that “the laws and conditions of the production of wealth partake of the character of physical truths. There is nothing optional or arbitrary in them.” State briefly the laws of the production of wealth here referred to, and whether the statement in regard to them is true.
  4. It has been said that the law of population and the law of diminishing returns from land point inevitably to misery and want as the destiny of the mass of mankind. What influences affecting the operation of these laws are to be taken into account; and if they are taken into account, are the laws of population and diminishing returns from land thereby shown to be invalid?
  5. Explain briefly the nature of the remuneration received by the following persons: a farmer tilling his own land; a merchant carrying on business with his own capital; a manufacturer carrying on business with borrowed capital; a holder of railway stocks; a holder of government bonds; a patentee.
  6. Wherein is the value of metallic money governed by different principles from those that regulate the value of commodities in general? And wherein is the value of inconvertible paper money governed by different principles from those that regulate the value of coin?
  7. Credit is said to be purchasing power. Explain what is meant by this proposition, and in what manner it bears on the theory of the value of money. Point out in what form credit, as purchasing power, is most likely to affect prices in the United States and in France.
  8. (a) Suppose that:
    In the U.S. one day’s labor produces 2 bushels of corn;
    “      “       “     “      “         “            “          10 yards of cotton cloth;
    “ England     “      “         “            “          1 bushel of corn;
    “       “            “       “         “            “          5 yards of cotton cloth.
    Would trade arise between England and the United States? If so how?
    (b) Suppose that in England one day’s labor produced 8 yards of cotton cloth, other conditions remaining the same as in (a). Would trade arise? If so, how?
    (c) Suppose that in England one day’s labor produced 2 yards of cotton cloth, other conditions remaining the same as in (a) Would trade arise? If so, how?
  9. Suppose a new article to appear among the exports of a given country. Trace the effects in that country on the course of the foreign exchanges; on the flow of specie; on the value of money; on the terms of international exchange. Would the results be the same if, instead of a new article of export, some article previously exported were to be sold abroad in larger quantity because of a lowering of its cost and price?
  10. (a) Arrange in proper order the following items of a bank account: Loans, $538,000; Bonds and Stocks, $40,000; Capital, $200,000; Real Estate, $26,000; other assets, $26,000; Surplus, $65,100; Deposits, $440,000; Notes, $101,550; Cash, $124,000; Cash Items, $52,650.
    (b) Suppose the bank to discount four months paper (at 6 per cent) to the amount of $10,000, of which it purchases one-half by promises to pay (the bearer) on demand, and one-half by cash. How would the account then stand?
    (c) Suppose a borrower to have repaid a loan of $2000 by giving $1000 in cash, and $1000 in a cheque on the bank. How would the account then stand?
    (d) Suppose the bank to be confronted, in a time of general embarrassment, with demands from depositors for cash, and from borrowers for discounts. What policy would be adopted if it were the Bank of England? If it were a United States national bank?

Source:  Harvard University Archives. Scrapbook of Professor Frank W. Taussig, pp. 10-11.

Class Enrollment.

Political Economy 1. Second half year: Division A (Theoretical, introductory to Courses 2 and 3). Mill’s Principles (Books IV, and V.). — Cairnes’s Leading Principles (Part I., chaps. Iii. and v.; part III., chaps. i.-v.). — Thompson’s Lectures on Protection. — Sumner’s Protectionism. — Bimetallism. Prof. Laughlin.

Total 101: 6 Seniors, 44 Juniors, 38 Sophomores, 5 Freshmen, 8 Others.

Source: Harvard University. Report of the President of Harvard College, 1886-87, p. 58.

 

1886-87.
POLITICAL ECONOMY 1.
Division A.
[Year-end Examination.  1887]

  1. If taxes levied on the rich cause a diminution in their unproductive expenditure, would that in any way affect the employment offered for labor? Discuss fully.
  2. What principle does Mr. Mill furnish by which the respective shares of labor and capital are determined? Has his Wages-Fund Theory any connection with his exposition of the dependence of “profits” on Cost of Labor?
  3. In discussing the distribution of the product, why is it that the relative shares of labor and capital can be discussed independently of rent? Would an increase of rent affect the share of labor or of capital?
  4. Why is it that city banks make a greater use of the deposit liability than of the note liability? Why is the fact just the reverse with country banks?
  5. State fully the difference between Cost of Labor and Cost of Production. Would a decrease in Cost of Production affect Cost of Labor in any way?
  6. If the returns, and consequently wages, in our extractive industries were to decline, how would the course of our foreign trade probably be affected?
  7. Explain carefully how, and under what conditions, Reciprocal Demand regulates Normal Value.
  8. How do you reconcile the doctrine of comparative cost in international trade with the fact that a merchant regulates his conduct by a comparison of prices at home with prices abroad?
  9. Explain how a tax on “profits” may fall either (1) on the laborer, or (2) on the landlord.
  10. Discuss the argument that protection raises wages.
  11. Is the customs-duty on sugar economically justifiable?

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, 1887), pp. 5-6, in bound volume Examination Papers, 1887-89.

 

Class Enrollment.

Political Economy 1. Second half year: Division B (Descriptive). Mill’s Principles (selections). — Upton’s Money in Politics. —Jevons’s The State in Relation to Labor. —  Lectures on Money, Bimetallism, Cooperation, and Trade-Unions. Prof. Taussig.

Total 106: 1 Graduate, 27 Seniors, 56 Juniors, 9 Sophomores, 2 Freshmen, 11 Others.

Source: Harvard University. Report of the President of Harvard College, 1886-87, p. 58.

 

1886-87.
POLITICAL ECONOMY 1.
Division B.
[One-hour Examination. April. 4, 1887]

  1. As society advances, what changes would you expect in the relative values of wheat of coal, of cotton cloth, and of watch-springs?
  2. Suppose the coinage of silver under the act of 1878 had been 20 millions of dollars a month, what would now be the money in use in the country? Explain briefly what has been the actual coinage, and what effect it has had on our monetary system.
  3. Make a comparison between the issues of paper money by the Continental Congress during the war of the Revolution, and by Congress during the civil war.
  4. Explain briefly what is meant by the following phrases: five-twenties; ten-forties; seven-thirties; continued 3 ½ per cents. 

Source:  Harvard University Archives. Scrapbook of Professor Frank W. Taussig, p. 12.

 

1886-87.
POLITICAL ECONOMY 1.
Division B.
[Year-end Examination. 1887]

  1. Suppose the price of silver to rise to such a point that the ratio of silver to gold would be 15 to 1, what change would take place in the money at present in use in the United States?
    Is such a change probable? If so, why? If not, why not?
  2. State the essential differences between the coinage acts of 1792, 1834, and 1878.
  3. “All experience has shown that there are periods when, under any system of paper money, however carefully guarded, it is impracticable to maintain actual coin redemption. Usually contracts will be based on current paper money, and it is just that, during a sudden panic or an unreasonable demand for coin, the creditor should not be allowed to demand payment in other than the currency in which the debt was contracted. To meet this contingency, it would seem to be right to maintain the legal tender quality of United States notes. If they are not at par with coin, it is the fault of the Government and not of the debtor, or rather it is the result of an unforeseen stringency not contemplated by the contracting parties.” From the Report of the Secretary of the Treasury, dated December, 1877.
    Under what circumstances was this passage written? Is the recommendation made by it a wise one? Has it been acted on?
  4. Ten men club together to buy flour at wholesale, each taking a part and paying his share of the price. Ten others club together, borrow money jointly, and lend it out to themselves for aid in carrying on their trades. A third ten club together, set up a workshop on joint account and work in it, and periodically divide the net proceeds.
    What kinds of cooperation are typified, respectively, by these proceedings? In what countries has each kind been most widely applied? Which seems to you to be of greatest intrinsic interest for the social question?
  5. What is meant by the eight-hour law? Wherein does it resemble, and wherein differ from, factory legislation in England?
  6. Compare the regulations of the Knights of Labor in regard to strikes with those of an English Trades-Union.
  7. “The present doctrine is that the workmen’s interests are linked to those of other workmen, and the employer’s interests to those of other employers. Eventually it will be seen that industrial divisions should be perpendicular, not horizontal.” Explain what is meant by this passage; state by what devices it is endeavored to promote the “horizontal” and the “perpendicular” divisions, respectively; and given an opinion as to which line of division is likely to endure.
  8. The declaration of principles of the Knights of Labor demand “the enactment of laws providing for arbitration between employer and employed, and to enforce the decision of the arbitrators.” Is it desirable to comply with that demand in whole, in part, or not at all?
  9. Suppose a tax were levied of ten percent on the house-rent paid by every person, those who occupied their own houses being assessed for the letting value of their dwellings. Would such a tax be direct or indirect? Would it conform to the principle of equality of taxation? Give your reasons.

Source:  Harvard University Archives. Scrapbook of Professor Frank W. Taussig, p. 12. Also, 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, 1887), pp. 5-6, in bound volume Examination Papers, 1887-89.

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Political Economy 2 (1886-87).

Class Enrollment.

Political Economy 2. Economic Theory; its history and present stage. — Lectures, preparation of papers, and discussion of selections from leading writers. Prof. Taussig.

Total 49: 2 Graduates, 33 Seniors, 14 Juniors.

Source: Harvard University. Report of the President of Harvard College, 1886-87, p. 58.

1886-87.
POLITICAL ECONOMY 2.
[Mid-year Examination, 1887]

  1. It has been said that the Mercantile writers built up the first system of political economy; again, that a system is first found in the writings of the Physiocrats; and again, that Ricardo created political economy as a science. What should you say as to these statements?
  2. Say something as to the connection that may be traced between the personal history of Adam Smith and of Ricardo, and the characteristics of their writings.
  3. Sketch the history of the doctrines as to the productiveness of different kinds of labor from the time of the Mercantile writers to that of J. S. Mill.
  4. Comment on the following:—
    “It remains a matter of some difficulty to discover what solid contribution Malthus has made to our knowledge, nor is it easy to ascertain precisely what practical precepts, not already familiar, he founded on his theoretic principles…. ‘Much,’ he thought, ‘remained to be done. The comparison between the increase of population and of food had not, perhaps, been stated with sufficient force and precision’ and ‘few inquiries had been made into the various modes by which the level’ between population and the means of subsistence ‘is effected.’ The first desideratum here mentioned—the want, namely, of an accurate statement of the relation between the population and the supply of food—Malthus doubtless supposed to have been supplied by the celebrated proposition that ‘population increases in a geometrical, food in an arithmetical, ratio.’ This proposition has been conclusively shown to be erroneous, there being no such difference of law between the increase of man and of the organic beings who form his food. When this formula is not used, other somewhat nebulous expressions are sometimes employed, as, for example, that ‘population has a tendency to increase faster than food’ a sentence in which both are treated as if they were spontaneous growths…It must always have been perfectly well known that population will probably (though not necessarily) increase with every augmentation of the supply of subsistence, and may, in some instances, inconveniently press upon or even for a certain time exceed the number properly corresponding to that supply. Nor could it have ever been doubted that war, disease, poverty — the last two often the consequences of vice — are causes which keep population down. Again, it is surely plain enough that the apprehension by individuals of the evils of poverty, or a sense of duty to their possible offspring, may retard the increase of population, and has in all civilized communities operated to a certain extent in that way. It is only when such obvious truths are clothed in the technical terminology of ‘positive’ and ‘preventive’ checks that they appear novel and profound; and yet they appear to contain the whole message of Malthus to mankind.”
  5. State carefully Cairnes’s theory of value, and show wherein it differs from Ricardo’s exposition of that subject.
  6. Explain the conclusions which George draws as to wages from an analysis of the simplest stage of society, and those which Ricardo draws as to values from a similar analysis. State whether the reasoning in the two cases differs and if so, wherein; and give an opinion as to the soundness of the conclusions reached.
  7. State carefully the wage-fund doctrine as expounded by Cairnes, and show wherein his exposition is an advance on the previous treatment of the subject.
  8. In a collection of examination questions, the following was asked:—
    “Cairnes argues that we cannot apply the law of supply and demand to labor, because the supply of labor is produced by biological forces and not as commodities are produced.— What is the fallacy of this argument?
    Comment on the question, and answer it; and refer briefly to the history of the line of argument that draws and analogy between the value of labor and of commodities.

Source:  Harvard University Archives. Harvard University, Mid-year examinations, 1852-1943. Box 1, Folder “Mid-year Examinations, 1886-1887”.

 

POLITICAL ECONOMY 2.
[Year-end examination]

  1. Comment, separately or in a connected essay, on the following extracts:—
    (a) “The first of these theories is known as the wage-fund theory of the books on Political Economy. It represents the rate of wages as depending on the amount of capital which employers think proper to disburse as wages. The wage rate was regarded as the dividend, found by dividing the wages-fund by the number of labourers. But though this division doubtless takes place, there is nothing in the theory to determine either the whole amount which is to be divided, or the proportional share which any particular labourer may obtain. Nobody can possibly suppose that workmen in different branches of production, or in different ranks in the same branch, receive the same wages. Nor can anybody imagine that the capitalist distributes his capital simply because it is capital, irrespective of the produce which he expects from the labour bought.” — W. S. Jevons.
    (b) “Ricardo held that profits and wages are the leavings of each other. Later economists have generally rejected this doctrine; but even those of them who maintain that wages are paid out of capital, fall back on arguments which imply its truth. For instance, Cairnes, who earnestly maintained that capital is divided into wages, rent, material, and wage-fund, argued that trades-unions could not increase the rate of wages because, if they did so, they would reduce profits below the rate which would make investment worth while. On his own doctrine, increased wages could not trench on profits. … We shall see further on that wages and profits are not the leavings of each other, because they are not parts of the same whole.”
    (c) “If we assume that upon a cultivated island are tools and carts and animals for draught, and other forms of capital, adequate for a thousand laborers, the production will vary within a very wide range according to the industrial quality of the laborers using that capital. If we suppose them to be East Indians, we shall have a certain annual product; if we suppose Russian peasants to be substituted for East Indians, we shall have twice or three times that product; if we suppose Englishmen to be substituted for Russians, we shall have the product again multiplied two or three fold. By the wage-fund theory, the rate of wages would remain the same through these changes, inasmuch as the aggregate capital of the island would remain the same through these changes and the number of laborers in the market would be unchanged, the only difference being found in the substitution of more efficient for less efficient laborers. According to the view here advanced, on the contrary, the amount to be paid in wages should and would rise with the increased production due to the higher industrial quality of the laboring population.”
    (d) “The capital of the employer is by no means the real source of the wages even of the workmen employed by him. It is only the immediate reservoir through which wages are paid out, until the purchasers of the commodities produced by that labor make good the advance and thereby encourage the undertaker to purchase additional labor.” — W. Roscher.
    Whom do you judge to be the writers of the extracts (b) and (c)?
  2. State carefully Walker’s theory of business profits. Give an opinion as to its value (1) in explaining differences between the returns of different managers, and (2) in eliminating such returns, like rent, from the problem of distribution.
  3. Compare Carey and Bastiat, and say something as to the manner and extent of their influence on the course of economic speculation.
  4. Explain wherein the attitude of Wagner to economic study differs from that of Mill and Cairnes.
  5. “Mr. Cairnes asks, ‘how far should religious and moral considerations be admitted as coming within the province of political economy?’ His answer is that ‘they are to be taken account of precisely in so far as they are found to affect the conduct of men in the pursuit of wealth;’ and one needs only to allude to the influence of mediaeval religion both on the forms and the distribution of the wealth of the community, the changes in both with the change in religion after the Reformation, in proof of the impotence of the a priori method in relation to this class of agencies. Yet a few pages after recognizing their title to investigation, Mr. Cairnes argues that induction, though indispensable in physical, is needless in economic science, on the ground that the economist starts with a knowledge of ultimate causes’ and ‘is already at the outset of his enterprise in the position which the physicist only attains after ages of laborious research.’ The followers of the deduction method are in fact on the horns of a dilemma. They must either follow Mr. Lowe’s narrow path, and reason strictly from the assumption that men are actuated by no motive save the desire of pecuniary gain, or they must contend that they have an intuitive knowledge of all the moral, religious, political, and other motives influencing human conduct, and of the changes they undergo in different countries and periods.”
    Was Cairnes inconsistent in the manner here stated? Does his reasoning lead to the alleged dilemma?
  6. Should you agree with the following:—
    “If economic phenomena were the results of a single force or combination of forces, standing alone, then only would the assumption hold good that there is an identity of effects on the appearance of the same causes. But economic facts are so closely connected with the whole of life, the element of personal freedom comes in so constantly, that a causal connection like that of a law of nature cannot be shown. This is at bottom the sound point in the criticisms of Ricardo’s keen logic. Ricardo often begins with facts, carefully and nicely observed in real life, and makes them the first premises of his reasoning. Then he uses a method of reasoning which is common in philosophy, but inadmissible in political economy. By logical sequence of thought he leads the reader, who can see no flaw in the chain of conclusions, to a result which, notwithstanding the solidity of the premises and the steadfast reasoning, is yet by no means unquestionable. For in the end we are not concerned with the elaboration of a truthful train of thought, but with a truth of real life; hence the test of truth lies in the connection of cause and effect that exists in real life; and as to that, with its manifold and varied possibilities, no human insight can make the true combinations in advance by abstract reasoning. There may be an artistic truth, which yet, when compared with reality, is not a truth. Even if one sees no inconsistency with the facts of experience up to the very last step in the reasoning, yet that reasoning gets its final stamp of truth only from experience. Our thoughts on the facts of the world are often true only so long as we shape them according to those facts that we know; a new experience comes in to better this approximate truth.” — Knies, Die Politische Oekonomie vom Historischen Standpunkte.

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, 1887), pp. 7-9, in bound volume Examination Papers, 1887-89.

Note: Political Economy 2. Has been posted earlier.

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Political Economy 3 (1886-87).

Class Enrollment.

Political Economy 3. Investigation and Discussion of Practical Economic Questions (Bimetallism, Gold and Prices, American Shipping, Canadian Reciprocity, and Railway Transportation. — Each student presented ten theses, which were read and discussed in the class. Prof. Laughlin.

Total 35: 3 Graduates, 12 Seniors, 19 Juniors, 1 Other.

Source: Harvard University. Report of the President of Harvard College, 1886-87, p. 58.

1886-87.
POLITICAL ECONOMY 3.
[Mid-year Examination, 1887]

  1. Discuss the following statement: “I would venture to assert that the influence of gold in raising or reducing prices depends not so much on the quantity of it available for use, as on the circumstances attending its production, and the facilities offered for its employment. … The sudden acquisition of money by those who rushed into gold mining … could not do otherwise than raise the demand for the necessaries and luxuries of life beyond the supply, and thus enhance their cost.”
  2. In considering the serious fall of prices since 1873 and its effects on existing contracts, compare the relative advantages to be derived from (1) a system of international Bimetallism, and (2) the Multiple Standard. What difficulties stand in the way of using the multiple standard?
  3. Give the facts in regard to the Free Coinage of gold, or silver, to-day in England, France, Germany, and the United States.
  4. Discuss the provisions of the U.S. Coinage Act of 1853, and its bearing on the success of the double standard in this country.
  5. Could an agreement of the chief commercial countries of the world to coin gold and silver at a fixed ratio keep the value of silver from falling under all circumstances?
  6. Name any Navigation Laws of the United States now in force, which had their origin in the retaliatory legislation of our early history.
  7. What effect has the policy of reciprocity, taken together with the high cost of building iron ships in the United States, had upon the foreign carrying trade of the country?
  8. Does the existing tariff work to diminish the United States foreign tonnage? How does the provision as to a drawback on articles manufactured wholly or in part of imported materials affect our foreign tonnage?
  9. What remedies should you propose for the decline of American shipping?
  10. Was the first experiment of issuing notes by a Bank, chartered by the United States, a successful one? Why?

Source:  Harvard University Archives. Harvard University, Mid-year examinations, 1852-1943. Box 1, Folder “Mid-year Examinations, 1886-1887”.

 

POLITICAL ECONOMY 3.
[Year-end examination]

  1. How do you account for the additional fall in the value of silver since the close of 1885?
  2. Are there sufficient grounds for believing that gold is scarce? What is the measure of scarcity? Is it the “needs of trade”?
  3. Discuss the causes of the growth of American shipping to 1856. Why have these causes not produced the same results since 1856 as before?
  4. Why were the issues of the Second United States Bank superior to those of the State banks of the same period?
  5. Ought the United States notes to be retired?
  6. In what way was the Reciprocity Treaty of 1854 between Canada and the United States connected with the fishery question? Why was the Treaty given up?
  7. What were the economic results of the Treaty? Do they furnish evidence as to the wisdom of reciprocity in the future?
  8. Are there any reasons to suppose that competition operates to modify rates on the railways of the United States?
  9. What are the objections against “pools”? Are these objections well founded?
  10. Compare the railway systems of England and France. How are discriminations regarded in these countries?

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, 1887), pp. 9-10, in the bound volume Examination Papers, 1887-89.

_______________________

Political Economy 4 (1886-87).

Class Enrollment.

Political Economy 4. Financial history of England and America since the Seven Years’ War. — Lectures. Prof. Dunbar.

Total 157: 1 Graduate, 44 Seniors, 44 Juniors, 53 Sophomores, 2 Freshmen, 13 Others.

Source: Harvard University. Report of the President of Harvard College, 1886-87, p. 58.

 

POLITICAL ECONOMY 4.
[Mid-year examination, 1887]

[Copy not (yet) located]

 

POLITICAL ECONOMY 4.
[Year-end examination, 1887]

Omit two questions

  1. Why did the repeal of the corn laws settle the question as to the adoption of free trade by England?
  2. Describe the leading measures by which Napoleon III. sought to stimulate the material prosperity of France.
  3. What were the reasons for granting public lands in aid of railway companies, as exhibited in the cases of the Illinois Central and the Pacific Railroads?
  4. The effects of the civil war on the system of landholding in the South and its probable influence on the general industry of that section.
  5. In what respects do quick transportation and telegraphs tend to produce analogous effects, and how are prices, as a measure of the value of gold, thereby affected?
  6. Among the causes for the decline of American shipping, how important was the civil war?
  7. What are the causes which make England the convenient centre for the “triangular” trade between nations?
  8. Describe the effects of the civil war on the tariff system of the United States.
  9. What form of wealth did France pay out in settlement of the indemnity of 1871, and what form did Germany actually receive?
  10. The causes which prevented the disastrous fall of gold predicted by some writers after 1850.
  11. The absorption of silver by India and reasons for its recent irregularity.
  12. The heavy demands for gold, 1871-83, and the reasons why they failed to produce any financial disturbance.
  13. The circumstances which enabled the United States to accumulate gold with special ease after the passage of the Resumption Act.
  14. If the working of the English coal mines should tend to become more expensive, could England protect her industrial supremacy by the importation of cheap coal? Give the reasons carefully.

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, 1887), pp. 10-11, in the bound volume Examination Papers, 1887-89.

_______________________

Political Economy 6 (1886-87).

Class Enrollment.

Political Economy 6. History of Tariff Legislation in the United States, and consideration of its economic effects. — Lectures, written exercises, and oral discussion. Prof. Taussig.
Second half-year.

Total 38: 2 Graduates, 28 Seniors, 4 Juniors, 4 Others.

Source: Harvard University. Report of the President of Harvard College, 1886-87, p. 59.

 

POLITICAL ECONOMY 6.
[Year-end examination, 1887]

  1. Comment on the historical statements, and on the reasoning from them, in the following extracts:—
    “Such was the state of things [bankruptcy and ruin the most complete] at the date of the passage of the tariff act of 1842. Scarcely had it become a law, when confidence began to reappear and commerce to revive—the first steps toward the restoration of the whole country, in the briefest period, to a state of prosperity the like of which had never before been known. Seeing that these remarkable facts were totally opposed to the free-trade theory, the author was led to study the phenomena presented in the free-trade period from 1817 to 1824, and in the protective one which commenced in 1825 and ended in 1834, — the one terminating in bankruptcy and ruin similar to that which exhibited itself in 1842, and the other giving to the country a state of prosperity such as had again been realized in 1846. … The more he studied these facts, the more did he become satisfied that the free-trade theory embodied some great error.” H. C. Carey, Preface to the Principles of Social Science.
  2. It has been said that protective duties cause the price of the protected articles to fall; and such an effect is said to have been produced on the prices of cotton cloth after 1816, of copper after 1869, and of steel rails after 1870. Comment on the principle, and on its application in these three cases.
  3. “This ill-understood and much reviled principle [the minimum principle] appears to me to be a just, proper, effective, and strictly philosophical mode of laying protective duties. It is exactly conformable, as I think, to the soundest and most accurate principles of political economy. It is, in the most rigid sense, what all such enactments so far as practicable ought to be: that is to say, a mode of laying a specific duty. It lays the import exactly where it will do good and leaves the rest free. It is an intelligent, discerning, discriminating principle, not a blind, headlong, generalizing, uncalculating operation. … The minimum principle, however, was overthrown by the law of 1832, and that law, as it came from the House, and as it finally passed, substituted a general and universal ad valorem duty of fifty per cent.” Webster, Speech in the Senate, 1836.
    What were the duties to which Webster refers in this passage? And what should you say to his comments on them?
  4. Explain carefully what is the fundamental proposition in Walker’s Treasury Report of 1845, and discuss its soundness as a principle of tariff reform.
  5. Explain the present system of duties on woollen cloths, stating briefly its history; and say something as to its effects.
  6. It has been said that high duties should be levied on manufactured articles and low duties on raw materials, because raw materials, being more bulky, require much shipping to transport them, and their free admission would give increased employment to American vessels. Assuming that the materials would in fact be carried in American vessels, should you say the argument was a sound one?
  7. How can you explain the fact that, while the manufacture of cotton cloths has been little, if at all, dependent on protection, the heavy duties on silk piece-goods have not prevented a continuous large importation?
  8. It has been proposed to admit sugar from Cuba duty free, by a reciprocity treaty. Should you be in favor of such a measure?
  9. Discuss one of the following subjects. (Those who have prepared special reports on any one of these subjects are not to select that one for discussion.)
    1. The financial working of the tariff act of 1846.
    2. Proposed tariff legislation since 1883.
    3. The circumstances under which the tariff act of 1833 was passed.

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, 1887), pp. 11-12, in the bound volume Examination Papers, 1887-89.

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Political Economy 7 (1886-87).

Class Enrollment.

Political Economy 7. Public Finance and Banking. — Leroy-Beaulieu’s Science des Finances. Prof. Dunbar.

Total 12: 3 Graduates, 6 Seniors, 3 Juniors.

Source: Harvard University. Report of the President of Harvard College, 1886-87, p. 59.

 

POLITICAL ECONOMY 7.
[Mid-year examination, 1887]

[Copy not (yet) located]

 

POLITICAL ECONOMY 7.
[Year-end examination]

Divide your time equally between A and B.

A.

[Two questions may be omitted.]

  1. Discuss the suggestion, which has been made, that among the French taxes upon real estate we ought to reckon,—
    1. The impôt des portes et fenêtres;
    2. Of the contribution des patentes, the droit proportionnel [à la valeur locative des locaux occupés].
  2. Weight the following reasons given by Leroy-Beaulieu for approving lottery loans:—
    “Les emprunts à loterie peuvent être regardés comme une combinaison ingénieuse et inoffensive dans les cas suivants: quand le prêteur est toujours certain de retrouver un jour, même en ayant la chance la plus mauvaise, au moins le capital qu’il a versé; quand, en outre, un intérêt rémunérateur, quoique inférieur à celui qu’autoriserait le marché des capitaux, est accordé à toutes les obligations, sans exception, même à celles qui ne sortent pas au tirages (3 ou 4 p. 100 par exemple, au lieu de 5 ou 6 p. 100 qui seraient peut-être le taux habituel du marché); quand, en dernier lieu, les lots n’ont qu’une importance modique, 20,000, 30,000, 50,000, 100,000 ou 150,000 francs au plus, et qu’ils ne peuvent pas donner lieu à des fortunes énormes. Dans tous ces cas les emprunts à loterie sont inoffensifs: le prêteur est sûr de ne pas perdre son capital, ni la totalité de l’intérêt dû pour ce capital: il sacrifie seulement une faible portion de cet intérêt pour courir la chance d’un gain considérable, mais pas assez toutefois pour procurer d’énormes fortunes. Dans ces conditions on peut soutenir que l’emprunt à loterie provoque l’épargne, surtout dans les basses classes.”
  3. Explain and discuss the system of reducing debt by means of terminable annuities, introduced by Mr. Gladstone.
  4. Discuss the following summary of conclusions, arrived at by Leroy-Beaulieu:—
    “Pour résumer cette épineuse matière, nous dirons que la partie de la dette d’un pays qui est entre les mains des nationaux peut légitimement être assujettie à tous les impôts généraux grevant dans le pays les valeurs analogues. Au contraire la partie de cette dette qui est entre les mains d’étrangers doit en être exempte. Mais jamais l’État ne peut s’arroger le droit de mettre un impôt spécial sur sa rente. Voilà ce que disent le bons sens et l’équité.”
  5. Compare the experience of England and France in the conversion of their national debts, and give the reasons for the marked difference.
  6. Discuss the propositions, laid down by Mr. Buckner, in his speech of April, 1882, in opposition to the Bank Charters Extension Bill,—
    1. That the currency ought to be issued by the government;
    2. That an elastic currency is mischievous, as introducing an element of uncertainty, and that the government should therefore issue a fixed amount of convertible notes.

B.

Mr. Goschen’s Budget for 1887 rests upon the estimate that income and outlay, if existing arrangements should not be changed, would be as follows (000’s omitted):—

Revenue. Expenditure.
Customs £20,200 Consolidated Fund £30,592
Excise 25,292 Army 18,394
Stamps 11,658 Navy 12,477
Land Tax 1,065 Civil Service 17,932
House Duty 1,920 Customs, Post, Teleg., &c. 10,786
Property and Income Tax 15,900
Post, Telegraph, &c. 15,120 ______
£91,155 £90,786
Surplus 974

Mr. Goschen then proposes, inter alia,—

  1. To diminish sinking-fund payments by £2,000,000;
  2. To take a penny off the income-tax, reducing it by £1,560,000;
  3. To lower the duty on tobacco, and thus give up £600,000 more.

Discuss these propositions, giving all explanation needed for a clear understanding of the subject by an uninformed reader.

Mr. Goschen says of the sinking-fund payments, “I lay great stress upon the fact that unless we put the matter into an endurable form, you will risk far larger inroads upon the sinking-fund than I here propose;” and further that “practically the whole burden of paying off debt has to be borne by the payers of income-tax.” In confirmation of these views it is pointed out that when the fixed charge for public debt was settled the income-tax was only 2d., that it is now 8d., and that other branches of revenue have not been “elastic.”

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, 1887), pp. 13-14, in the bound volume Examination Papers, 1887-89.

_______________________

Political Economy 8 (1886-87).

Class Enrollment.

Political Economy 8. Financial history of the United States. — Lectures. Prof. Dunbar.
First half-year

Total 32: 1 Graduate, 25 Seniors, 3 Juniors, 3 Others.

Source: Harvard University. Report of the President of Harvard College, 1886-87, p. 59.

 

POLITICAL ECONOMY 8.
[Mid-year examination]

[Copy not (yet) located]

Image Source: Harvard Library, Hollis Images. Charles F. Dunbar (left) and James Laurence Laughlin (middle) and Frank W. Taussig (right).

 

Categories
Exam Questions Harvard

Harvard. Year-end Examinations in Political Economy, 1885-1886

 

Seven of nine courses listed in Political Economy were taught during the 1885-86 year at Harvard. This post provides the enrollment information as well as the June final examinations for six of those political economy courses. Mid-year examinations are not included with one exception.

In addition the final course examination for Philosophy 11 (The Practical Ethics of Modern Society) has been included since that course deals with social and economic reform.

Note to self: only the mid-year examination for Taussig’s Political Economy 6 is included below, the others still need to be located.

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Enrollment 1885-86

[Philosophy] 11. The Practical Ethics of Modern Society.—Studies of the principles of Social Reform.—The subjects dealt with were: problems of charity, divorce, the Indians, the labor question, and temperance. Practical study of institutions and methods of philanthropy and benevolence. Prof. Peabody

Total 35: 1 Graduate, 1 Law, 12 Divinity, 12 Seniors, 3 Juniors, 3 Sophomores, 1 Freshman, 2 Others.

Source: Harvard University. Report of the President of Harvard College, 1885-1886, p. 50.

 

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

[Omit one question]

  1. The inductive method as applied to ethical questions.
  2. The relation of Political Economy to the ethics of social reform.
  3. “Estimating life by multiplying its length into its breadth, we must say that the augmentation of it results from increase of both factors.” (Spencer.)
    Explain and criticize.
  4. “Suppose that a man going through a wood should be struck by a falling tree and pinned down beneath it, &c.” (Sumner, Social Classes, p. 153.) Why should we help him?
  5. Contrast the Roman “Liberalitas” and the Christian “Caritas.”
  6. “Marriage appears to me more than a mere contract. It has an extent of obligation different from what belongs to ordinary contracts.” (Story.) Why?
  7. New methods in Indian legislation.
  8. The programme of the Socialists and its difficulties.
  9. “Eventually it will be seen that industrial divisions should be vertical, not horizontal.” (Jevons.) Explain and illustrate.
  10. Illustrate the interdependence of various social reforms.

Source: Harvard University Archives. Harvard University Examination Papers, 1873-1915. Box 2.  Papers Set for Final Examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College(Cambridge, Mass., 1886) in Examination Papers 1883-86 (Bound Volume), pp. 6-7.

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Enrollment 1885-86

[Political Economy] 1. J. S. Mill’s Principles of Political Economy (Laughlin’s edition).—Dunbar’s Chapters on Banking.—Lectures on the financial legislation of the United States. Profs. Dunbar and Laughlin.

Total 176: 2 Graduates, 27 Seniors, 75 Juniors, 53 Sophomores, 19 Others.

Source: Harvard University. Report of the President of Harvard College, 1885-1886, p. 50.

 

POLITICAL ECONOMY 1.
[Year-end examination]

  1. Explain what is meant by the “standard of living” of the laboring class. In a densely populated country would the standard of living have any influence on the general rate of wages?
  2. Show clearly why there must be land in cultivation which pays no rent.
  3. Explain carefully the relation between Cost of Labor and Real Wages. How can an increase of population affect Cost of Labor?
  4. Under what conditions can it be said that normal value depends on the “expenses of production”? State the law of market and normal value for commodities affected by the law of diminishing returns.
  5. Explain the reason for the existence of foreign trade. Is there any different reason for the exchange of goods in domestic trade?
  6. What is inconvertible paper money? From the history of the United States notes state the main events showing the attitude of Congress towards their issue, while the notes were inconvertible.
  7. Why is a bank obliged to limit its loans when its cash reserve is seriously impaired?
  8. Why is it that the products of extractive industries are liable to great variations of market value?
  9. Upon whom would a tax on Rent fall? Would such a tax be a discriminating tax on the agricultural interests?
  10. What are the advantages of direct taxation? State by what kinds of taxation, direct or indirect, the United States gets its revenue.
  11. Is it correct to say that high wages alone prevent us from selling manufactured goods in foreign markets?

Source: Harvard University Archives. Harvard University Examination Papers, 1873-1915. Box 2.  Papers Set for Final Examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College(Cambridge, Mass., 1886) in Examination Papers 1883-86 (Bound Volume), p. 8.

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Enrollment 1885-86

[Political Economy] 2. History of Economic Theory.—Examination of selections from leading writers. Prof. Dunbar.

Total 18: 1 Graduate, 8 Seniors, 9 Juniors.

Source: Harvard University. Report of the President of Harvard College, 1885-1886, p. 50.

 

POLITICAL ECONOMY 2.
[Year-end Examination]

A.

Discuss, either separately or in connection with each other, and as fully as your time will allow, the four extracts which follow, viz.:—

I.

“[The historical method] would have been scarcely intelligible to some of the old economists; economic research was to men like Ricardo a superfluous work. What use had they for facts? The one central fact of human selfishness was enough; out of that they could deduce all the principles of their science…. The method of the old school required the invention of an ‘economic man.’ who is supposed to have none other than economic desires or purposes; and its speculations are concerned with his possible and probable behavior. The new school insists that this is a clear case of ‘lunar politics’; that such men do not exist, and that it is of small consequence, therefore, to determine what they would do if they did exist.”—[Rev. W. Gladden in The Independent, Oct. 8, 1885.]

II.

“The theory of natural laws has had two bad consequences; it has taken away all notion of an ideal to be sought, and it has singularly narrowed the conclusions of political economy. In the writings of the orthodox economists, they never speak of the final object which we should seek to reach, nor of the reforms which justice might direct. Is distribution effected in the manner most favorable to human progress and happiness? Does consumption conform to the moral laws?
…Have we no economic duties to perform?…The rigorous science does not occupy itself with what ought to be, but only with what is; it cannot then propose or seek for an ideal. It merely describes how wealth is produced, distributed, and consumed; and hence the poverty of its practical conclusions. In fact, if liberty alone is enough to cause everything to arrange itself in the best way and to establish harmony, the programme of political economy must be nearly exhausted in countries which, like England, the Netherlands, and Switzerland, have admitted free trade and free competition.”—[M. Laveleye in the Revue des Deux Mondes, July, 1875, p. 464.]

III.

“Political economy…insists that all trade, whether in tangible commodities, in personal services, or in commercial credits, is of one and the same nature; that trade is buying and selling, which is naturally profitable and ought to be free;…that every seller has the right to get the most he can for his service under all circumstances—that is to say, to render the least of his own service needful at the time to get the service of the other man; that God ordained to be proper and profitable this mutual exchange of services among men; that no persons in the world except the parties themselves, man to man, have the wisdom to dictate its terms.”—[Professor Perry in the Nation, June 10, 1886.]

IV.

“But economic science is wholly practical; it has no raison d’être except as directing conduct towards a given end; it studies the means leading towards that end, not merely for the sake of knowledge, but in the hope of guiding men so that they may pursue that end in the most appropriate way; it is not content to describe the principles that have actuated human conduct, but desires to look at  these principles in the light of after events, and thus to put forward the means that are best adapted for attaining the end in view.”—[Cunningham’s Politics and Economics, p. 12.]

B.
One question may be omitted.

  1. State and discuss Walker’s theory by which labor is represented as having the residual share of all product, after the payment of rent and profits.
  2. “But the fundamental truth, that in all economic reasoning must be firmly grasped and never let go, is that society in its most highly developed form is but an elaboration of society in its modest beginnings, and that principles obvious in the simpler relations of men are merely disguised and not abrogated or reversed by the more intricate relations that result from the division of labor and the use of complex tools and methods.”
    What limits, if any, should you set to the validity of arguments thus drawn from the case of primitive society?
  3. Examine the following proposition stated by Mr. George:—
    “Capital has never to be set aside for the payment of wages when the produce of the labor for which the wages are paid is exchanged as soon as produced; it is only required when this produce is stored up, or what is to the individual the same thing, placed in the general current of exchange, without being at once drawn against—that is, sold on credit. [When an employer needs capital] it is because he is not only an employer of labor, but a merchant or operator in, or an accumulator of, the products of labor.”
  4. State and discuss the reasoning by which Mr. George supports the following proposition:—
    “Without any increase in population, the progress of invention constantly tends to give a larger and larger proportion of the produce to the owners of land, and a smaller and smaller proportion to labor and capital. And as we can assign no limits to the progress of invention, [if labor-saving invention were ever to reach perfection] wages would be nothing, and interest would be nothing, while rent would take everything.”
  5. State (a) Mr. George’s theory of the causes of commercial depressions;
    (b) Mr. Crocker’s theory of the same, as explained by excessive saving and investment in productive forms.
    Discuss either (a) or (b).

Source: Harvard University Archives. Harvard University Examination Papers, 1873-1915. Box 2.  Papers Set for Final Examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College(Cambridge, Mass., 1886) in Examination Papers 1883-86 (Bound Volume), pp. 9-11.

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Enrollment 1885-86

[Political Economy] 3. Investigation and discussion of practical economic questions of the day: bimetallism; appreciation of gold; American shipping; government issues and national bank notes; Canadian reciprocity.—Short theses criticized by the Instructor and discussed by the class. Prof. Dunbar Laughlin.

Total 17: 1 Graduate, 5 Seniors, 11 Juniors.

Source: Harvard University. Report of the President of Harvard College, 1885-1886, p. 50.

 

POLITICAL ECONOMY 3.
[Year-end Examination]

  1. Compare the difficulties with our coinage in 1834 with those of to-day. Would the remedy which was applied in 1834 be a correct one to-day?
  2. What is the present condition of the Latin Union?
  3. Have you any reasons to offer for the recent additional decline in the value of silver since September, 1885?
  4. Discuss the influence on American tonnage of existing laws in regard to the importation of materials for the construction in the United States of (1) ships to be sailed under our own flag in the foreign trade, and of (2) ships to be sailed under a foreign flag.
  5. How do you account for the increasing tonnage of foreign wooden sailing-vessels in our ports?
  6. If we have little steam tonnage in the foreign trade, why is it that builders of iron and steam ships can exist in the United States? How does your conclusion on this question affect the argument for free ships?
  7. On reasons connected with the quantity of notes issued, would you advocate the use of United States notes, or National Bank notes?
  8. Discuss the plans which propose the continuance of the national bank system by substituting other bonds for United States securities.
  9. Is the national bank note immediately convertible under the present system?
  10. What advantages were expected by American manufacturers from the Reciprocity Treaty with Canada? Were these expectations realized?
  11. How were our agricultural interests actually affected during the continuance of the Treaty (1854-1866)?

Source: Harvard University Archives. Harvard University Examination Papers, 1873-1915. Box 2.  Papers Set for Final Examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College(Cambridge, Mass., 1886) in Examination Papers 1883-86 (Bound Volume), p. 11.

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Enrollment 1885-86

[Political Economy] 4. Economic history of America and Europe since the Seven Years’ War.—Lectures. Prof. Dunbar.

Total 184: 1 Graduate, 74 Seniors, 57 Juniors, 41 Sophomores, 11 Others.

Source: Harvard University. Report of the President of Harvard College, 1885-1886, p. 51.

 

POLITICAL ECONOMY 4.
[Year-end Examination]

Three questions to be omitted.

  1. What was the plan of the Zollverein, and what was its influence on the political unity of Germany?
  2. What were the leading measures by which Napoleon III. stimulated the material development of France?
  3. History of the Suez canal.
  4. Why can India no longer be depended upon to absorb surplus silver from Europe as formerly?
  5. How far is the decline of American shipping traceable to the civil war?
  6. Reasons for the increased financial importance of the United States Treasury since 1861.
  7. The industrial effects of steam transportation and the telegraph.
  8. Why did the French indemnity of 1871 seriously affect England, the United States, and Austria?
  9. The suspension and resumption of specie payments by France in the decade, 1870-80.
  10. The financial effect of the concentration of bank reserves in New York.
  11. The difference in the development of city and of country banks (in the United States and in England), and the inference to be drawn as to the future development of banking.
  12. Jevons’s sunspot theory of crises, and the reasons for and against it.
  13. The English coal supply and the national debt.

Source: Harvard University Archives. Harvard University Examination Papers, 1873-1915. Box 2.  Papers Set for Final Examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College(Cambridge, Mass., 1886) in Examination Papers 1883-86 (Bound Volume), p. 12.

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Enrollment 1885-86

[Political Economy] 6. History of Tariff Legislation in the United States.— Discussion of principles.  Consent of instructor required. Dr. Taussig.

Total 35:  2 Graduates, 4 Law, 17 Seniors, 11 Juniors, 1 Other.

Source: Harvard University. Report of the President of Harvard College, 1885-1886, p. 51.

 

1885-86.
POLITICAL ECONOMY 6
[Mid-Year Examination]

  1. Comment on the following:—
    “Beside the protection thrown over the manufacturing interest by Congress during this period (1789-1812), the war which raged in Europe produced a favorable effect. As the United States was a neutral nation, she fattened on the miseries of the European nations, and her commerce increased with astonishing rapidity. Our manufactures flourished from the same cause, though not to a corresponding degree with our commerce.”
  2. Take two of the following:—
    (a) Give some account of the sources from which we learn the character of the act of 1828, and the circumstances under which it was passed.
    (b) What was Webster’s position on the tariff question, in 1824, in 1828, and in 1833?
    (c) What was Clay’s position on the tariff question in 1820, in 1828, and in 1832?
    Under (b) and (c) discuss briefly the reasons why Clay and Webster acted as they did at the dates mentioned.
  3. Comment on the following:—
    “Whenever we diminish importation by a protective tariff, we must at the same time diminish the production of those goods which, were trade free, we should given in exchange for the goods imported…..It would, however, be a mistake in the other direction to assume that all the industry set in operation by the tariff is withdrawn from other employments, and that there is no increase whatever. The very fact that, under free trade, goods are imported instead of being made at home shows that we find it easier to make the goods which we send abroad than to make those which we receive in exchange for them. Hence when we are forced to make them for ourselves, there must be an increase in the sum total of our industry.”
  4. Comment on the following, and state when and by whom you think it was written:—
    “The principal argument for the superior productiveness of agricultural labor turns on the allegation that the labor employed on manufactures yields nothing equivalent to the rent of the land, or to that net surplus, as it is called, which accrues to the proprietor of the soil….It seems to have been overlooked that the land itself is a stock or capital, advanced or lent by its owner to the occupier or tenant, and that the rent he receives is only the ordinary profit of a certain stock in land, not managed by the proprietor himself, but by another, to whom he lends or lets it, and who, on his part, advances a second capital, to stock and improve the land, upon which he also receives the usual profit. The rent of the landlord and the profit of the farmer are, therefore, nothing more than the ordinary profit of two capitals belonging to two different persons, and united in the cultivation of the farm.”
  5. State as nearly as you can what were the duties on cotton goods, woolen goods, bar iron, hemp, and articles not specifically provided for, in the years 1800, 1814, 1820, 1830, and 1837. Mention what tariff act was in force at each date, and whether the duty was specific or ad valorem. Use tabular form if you wish.

Source: Harvard University Archives. Examination papers in economics, 1882-1935. Prof. F. W. Taussig, p. 7.

 

POLITICAL ECONOMY 6.
[Year-End Examination]

[Omit one question.]

  1. Does a tax on imports operate as a tax on exports? Apply your reasoning to the exports of Southern cotton in 1830, and to those of Western grain in 1880.
  2. Assuming that you were called on to reduce duties, state the order of preference in which you would effect reductions in the present duties on iron, sugar, silks. Give your reasons.
  3. Make a comparison between the general course of tariff legislation in the United States and on the continent of Europe, from 1860 to the present time.
  4. Make a comparison between the tariff legislation of the United States in 1833 and in 1846.
  5. Comment on the reasoning and the statements of fact in the following:—
    “The duty of 1867 on wool, which gave to wool-growing its greatest encouragement, has added nothing to the cost of wool to the manufacturer or the consumer. On the contrary, the price has been greatly cheapened. In 1867 the price was 51 cents, in 1870 it was 46 cents, in 1875 it was 43 cents. There has been a steady reduction, with occasional fluctuations, since 1867. Free wool will be of no permanent benefit to manufacturer or consumer, but a positive loss to both. On the other hand, the wool-growing interest will be ruined by the competition of Australia, New Zealand, and the South American States.”
  6. Would you impose specific or ad-valorem duties on steel rails, wool, woolen cloths? Give your reasons. What has been the practice in imposing duties on these articles since 1860?

Source: Harvard University Archives. Harvard University Examination Papers, 1873-1915. Box 2.  Papers Set for Final Examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College(Cambridge, Mass., 1886) in Examination Papers 1883-86 (Bound Volume), pp. 12-13.

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Enrollment 1885-86

[Political Economy] 8. Financial history of the United States.—Bolles’s Financial History— Lectures. Prof. Dunbar.

Total 31:  1 Graduate, 4 Law, 15 Seniors, 11 Juniors.

Source: Harvard University. Report of the President of Harvard College, 1885-1886, p. 51.

 

POLITICAL ECONOMY 8.
[Year-end Examination]

  1. What grounds are there for doubting the necessity of the first legal tender act?
  2. Explain the steps by which the legal tender paper, at first regarded as a temporary issue, became a permanent currency.
  3. What were the arguments for and against the asserted right of the government to pay the five-twenties in paper?
  4. In what respects did the resumption act when passed appear to be insufficient for its purposes?
  5. What was the argument for the proposition that contraction in some form was necessary for a return to specie payments; and how was contraction practically avoided?

Source: Harvard University Archives. Harvard University Examination Papers, 1873-1915. Box 2.  Papers Set for Final Examinations in Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College(Cambridge, Mass., 1886) in Examination Papers 1883-86 (Bound Volume), p. 13.

Images Source:  Harvard Library, Hollis Images. Charles F. Dunbar (left) and James Laurence Laughlin (middle) and Frank W. Taussig (right).

 

Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. Graduate Mathematical Economics. Syllabus and Final Exam. Chipman, 1952

 

 

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. This post provides a transcription of the course syllabus and final examination for Chipman’s “General Interdependence Systems”, a name he chose for the course he inherited bearing the nominal title of “mathematical economics”.

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Course Announcement

Economics 214b (formerly Economics 204b). Mathematical Economics

Half-course (spring term). Tu., Th., 2:30-4. Assistant Professor Chipman.

General interdependence systems; in particular, Leontief linear systems. Properly qualified undergraduates will be admitted to the course.

Source: Harvard University Archives. Courses of Instruction, Box 6. Final Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences during 1951-52 published in Official Register of Harvard University Vol. XLVIII, No. 21 (September 10, 1951), pp. 80-81 .

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Economics 214b
General Interdependence Systems

Second Semester, 1951-52
Syllabus

*Texts

I STATIC LEONTIEF MODEL

*Wassily W. Leontief: The Structure of American Economy, 1919-1939, New York, Oxford University Press, 1951.

II DYNAMIC MODELS

*John S. Chipman: The Theory of Inter-Sectoral Money Flows and Income Formation, Baltimore, The John Hopkins Press, 1951

Richard M. Goodwin: “The Multiplier as Matrix,” Economic Journal, December 1949

________________: “Does the Matrix Multiplier Oscillate?” December 1950

________________: “Static and Dynamic Linear General Equilibrium Models,” (mimeographed, Littauer Library)

David Hawkins and Herbert A. Simon, “Note: Some Conditions of Macroeconomic Stability,” Econometrica, July-October 1949

Oscar Lange, Price Flexibility and Employment, Bloomington, Indiana, Principia Press, 1944, Appendix.

Lloyd A. Metzler: “Stability of Multiple Markets: The Hicks Conditions,” Econometrica, October 1945

________________: “A Multiple Region Theory of Income and Trade,” Econometrica, October 1950

________________: “A Multiple-Country Theory of Income Transfers,” Journal of Political Economy, February 1951.

Paul A. Samuelson: Foundations of Economic Analysis, Ch. IX and Appendix B

________________: “A Fundamental Multiplier Identity,” Econometrica, July-October 1943

Arthur Smithies: “The Stability of Competitive Equilibrium,” Econometrica, July-October 1942

Robert Solow: “On the Structure of Linear Models,” Econometrica, January 1952

Frederick V. Waugh: “Inversion of the Leontief Matrix by Power Series,” Econometrica, April 1950

III ALLOCATION OF RESOURCES (“LINEAR PROGRAMMING”)

*Tjalling C. Koopmans (ed.): Activity Analysis of Production and Allocation, New York, John Wiley & Sons, Inc., 1951.

________________: “Efficient Allocation of Resources,” Econometrica, October 1951.

Nicholas Georgescu-Roegen: “Leontief’s System in the Light of Recent Result,” Review of Economics and Statistics, August 1950

John von Neumann: “A Model of General Economic Equilibrium,” Review of Economic Studies, October 1945.

 

MATHEMATICAL REFERENCES

(1) Matrices

R. A. Frazer, W. J. Duncan and A. R. Collar, Elementary Matrices, New York, Macmillan, 1947

C. C. MacDuffee, Vectors and Matrices, Menasha, Wisconsin, 1943

A. C. Aitken, Determinants and Matrices, Edinburgh, Oliver and Boyd, 1948

(2) Difference and Differential Equations

P. A. Samuelson, “Dynamic Process Analysis,” in A Survey of Contemporary Economics, Philadelphia, Blakiston, 1948

R. G. D. Allen, “Mathematical Foundations of Economic Theory,” Q.J.E. February 1949

F. R. Moulton, Differential Equations, New York, Macmillan, 1930, Ch. XV

W. J. Baumol, Economic Dynamics, New York, Macmillan, 1951.

(3) Set Theory and Abstract Algebra

F. P. Northrup and Associates, Fundamental Mathematics, Vol. I, Chicago, Univ. of Chicago Press, 1948

Richard Courant and Herbert Robbins, What is Mathematics?, New York, Oxford University Press, 1941

Garrett Birkhoff and Saunders MacLane, A Survey of Modern Algebra, New York, Macmillan, 1950

Paul Halmos, Finite Dimensional Vector Spaces, Princeton, Princeton University Press, 1948

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 5. Folder: “Economics, 1951-1952 (2 of 2)”.

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1951-52
HARVARD UNIVERSITY
ECONOMICS 214b
[Final examination]

Answer both questions

  1. Consider an economy composed of n sectors (say industries and households) and described by the model
    {{y}_{i}}\left( t \right)=\sum\limits_{j=1}^{n}{{{a}_{ij}}{{y}_{j}}\left( t-1 \right)}+\,\,\,\,{{b}_{i}}\,\,\,\,\left( i=1,...,n \right)
    where yi(t) is the output of sector i at time t, of which bi is the exogenous component, and where the input-output coefficients aij are all taken to be non-negative. Assuming the economy to be initially in a state of equilibrium, show under what conditions an autonomous rise in all the bi

    1. implies an increase in the equilibrium values of all the sector outputs;
    2. causes all sector outputs to approach, with time, new equilibrium values.
      Compare and interpret these conditions.
  2. “A possible activity is efficient if and only if there exists a set of positive prices for all commodities, which give rise to zero profits on this activity and non-positive profits on all other possible activities.”
    1. Prove this theorem, keeping in mind the following two properties of convex polyhedral cones:
      1. The negative polar of the intersection of two cones is equal to the sum of their negative polars;
      2. The sum of two cones is equal to the sum of their dimensionality spaces if and only if the relative interior of the one cone intersects the negative of the relative interior of the other.
    2. Indicate a modification of the theorem, with the appropriate modification of the definition of efficiency, when availability limitations are specified on certain primary commodities, which are no longer regarded as “undesirable.”
    3. Outline the properties of the efficient set in (b) when there is only one primary commodity and there is no joint production.
    4. Discuss the usefulness, significance, and validity of the notion of an efficient set of activities as employed in (a), (b), and (c).

Source: Harvard University Archives. Harvard University, Final examinations, 1853-2001. Box 27, Papers Printed for Final Examinations [in] History, History of Religions,…Economics,…, Air Sciences, Naval Science, June 1952.

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
Computing Economics Programs Faculty Regulations Fields Harvard

Harvard. Discussed at Faculty Meeting. Computer Access and “Mathematical Economics and Econometrics” as Optional Field, 1959

 

Notes from a faculty meeting in my experience are more often a list of items, resolutions, motions, and votes than a narrative of the actual discussion. The transcribed notes in this post come from a 1959 Harvard economics faculty meeting that had two items on the agenda. The first was John R. Meyer’s report on how to manage graduate student computing needs if the department were to lose access to IBM-650 services. The second discussion was a continuation of a debate in the department whether a new Ph.D. oral examination field “Mathematical Economics and Econometrics” should be introduced (plot spoiler: the resolution was tabled, at least for the time being).

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Economics Faculty Meeting Minutes
December 8, 1959

The Department of Economics met on Tuesday evening, December 8 [1959] at the Faculty Club. Those present: Messrs. Bergson, Chamberlin, Dorfman, Dunlop, Gerschenkron, Leontief, Mason, J. R. Meyer, Smithies (Chairman), Taylor, Black, McKie, Artle, Erbe, Daniere, Gill, Lefeber, Anderson, Baer, Gustafson, Hughes, Jones, Kauffman, Wilkinson, Mrs. Gilboy, and Miss Berman.

Abandonment of IBM-650

Professor John Meyer explained that with cheaper time available on newer computers within and outside the University the market for IBM-650 services is waning. A deficit on operations can be expected within a few months, and it will, therefore, be impossible to retain the machine. The problem the Department now faces is that of making available to students a computer training device comparable to the 650. The Harvard Univac can serve this purpose well although it is likely to disappear in the near future through the competition of better machines.

Professor Smithies called the attention of the meeting to two further effects of withdrawing the IBM-650:

(a) Students without outside financing will not, as in the past, be able to solve their problems by making use of free 650 time.

(b) It will no longer be possible to handle problems requiring a succession for short programs with some elements of trial and error; every program will have to be handed to an operator and the results, good or bad, will not be available until days later.

Both Professor Dorfman and Meyer vouched that, even under these impediments, the cost of most computations would be far lower through such a machine as the 704 than with the 650.

With respect to student training and student problem financing, Professor Leontief expressed the opinion that if scientific departments at Harvard can receive funds for the purchase of materials and equipment needed in the training of their students the Administration should certainly be ready to offer similar help in the social sciences. After hearing from Professor Meyer that the Dean’s offices had not been particularly responsive to this suggestion, Professor Leontief suggested than an arrangement could be entered with IBM by which we could contract at a discount for a large block of 705 time at their Cambridge Street laboratory with the understanding that we would sell some of the time to financially able Harvard users and utilize the remainder for training and computing students’ problems.

Professor Meyer agreed that this might become feasible in the near future when, with the appearance of an IBM-709 at the Smithsonian Institute and other 704’s in the neighborhood, IBM may face a buyers’ market. His proposal for the time being was to turn to Univac while it is still on our premises and to divert some of the departmental contributions now going to the support of the Littauer Laboratory to subsidize student training and to some extent student problems on the 704.

 

Introduction of a field labeled “Mathematical Economics and Econometrics” as an optional field for the oral Ph.D. examination

Professor Dorfman reintroduced his motion that “a field called ‘Mathematical Economics and Econometrics’ be one of the optional fields for the Ph.D. examination.” He recalled his previous arguments, i.e., that both Mathematical Economics and Econometrics become legitimate specialties in the general field of economics with a literature sufficiently abundant and specialized that a student well versed in economic theory and statistics will not generally know the former fields and that no student can become thoroughly familiar with them in his two years of graduate work unless his load is otherwise reduced. The substance of the proposed examination would be the literature in which relatively advanced methods of mathematical analysis are applied to economic theory and advanced methods of statistical analysis are applied to the processing of data relevant to economic problems.

The discussion centered around two objections: (1) to the extent that proficiency in economic theory is a prerequisite to mathematical economics and that an advance knowledge of statistics is required in econometrics, students who are examined in both the new field and one or both of the older fields of theory and statistics will obtain double credit for what is a single specialization and (2) an essential requirement of our Ph.D. is breadth of preparation in economics. As it is, nothing under the motion would prevent a student from presenting the following five fields: theory, statistics, mathematical economics and econometrics, mathematics and history. This clearly represents a narrow preparation and cannot be acceptable under our standards. The second objection, voiced most effectively by Professor Dunlop, was immediately recognized as valid, and Professor Dorfman amended his motion to include the condition that mathematics could not be presented jointly with the new field. He insisted, however, that students offering mathematical economics and econometrics are of such a type that, even without the amendment, they would not have taken advantage of the mathematics loophole. Their insistence on a mathematics examination is based entirely on the recognition that they cannot become proficient in their specialty while carrying in addition the same load as their colleagues.

Three different suggestions were offered as alternatives to the proposed motion.

(1) Professor Dunlop accepted the introduction of the new field as long as examinations in any or all of the three fields of theory, statistics, and mathematical economics and econometrics would not count toward more than two of the five fields required.

(2) Professor Chamberlin did not change the present field listing but proposed that a student could by previous arrangement ask to be examined in theory with emphasis on mathematical analysis, the requirements be correspondingly milder with respect to traditional theory and history of thought.

(3) Professor Bergson offered a variation of Professor Chamberlin’s proposal pointing out that, even without the introduction of mathematical analysis, economic theory is now a broad and somewhat ill-defined field so that, in order to better test the students’ analytical scale, fields of concentration should perhaps be agreed upon before the Ph.D. examination. He also emphasized that students do not after all stop learning after their oral examination and that since a student proficient in mathematics can be expected to make use of mathematical techniques in his thesis work the special examination might be the best time to test him on his ability in this field.

Professor Leontief injected a fatalistic note indicating that the problem will solve itself in the future as more and more students join the graduate school with a mathematical preparation such that the theory courses can make use of mathematical tools. For the present it would be unfortunate to have students neglect economic theory for the purpose of acquiring mathematical proficiency. We should, however, provide adequate training facilities for those who because of superior ability or previous preparation can benefit from courses in mathematical economics and, to the extent that recognition may be helpful, include a mention of their special skill in their records.

In view of the lack of agreement evidenced by the meeting, Professor Dunlop asked that the motion be tabled. All were in favor.

Andre Daniere
Secretary

Dictated 12/14/59

 

Source:  Harvard University Archives. Department of Economics Correspondence and Papers, 1930-1961 and some earlier. (UAV349.11), Box 13.

Image Source: Harvard Faculty Club from JDeQ’s August 2, 2013  blog entry “Dinner at the Harvard Faculty Club“.

Categories
Economics Programs Exam Questions Harvard

Harvard. Political Economy course enrollments and final exams, 1884-1885

 

Six of eight courses listed in Political Economy were taught during the 1884-85 year at Harvard. This post provides the enrollment information as well as the June final examinations for all of those courses. Mid-year examinations are not included with one exception.

 

Note to self: only the mid-year examination for Taussig’s Political Economy 6 is included below, the others still need to be located.

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Political Economy 1. Profs. Dunbar and Laughlin. 3 hours per week.

Laughlin’s Mill’s Principles of Political Economy. — Lectures on the Financial Legislation of the United States

Total: 166:  18 Seniors, 75 Juniors, 61 Sophomores, 4 Law, 8 Others.

Source: Harvard University. Report of the President of Harvard College, 1884-85, p. 86.

 

POLITICAL ECONOMY 1.
[Final Examination, June 1885]

  1. If a farmer had the alternative of spending a sum of money either for manures, or for the services of useless servants, in which way would he give the greater employment to the laboring class by his expenditure? Explain your answer.
  2. (a) Discuss the causes affecting the efficiency of production; and (b) point out the relation of an increase in production to cost of labor.
  3. Is it strictly true that high wages do not make high prices? What would be the effect on real wages of a considerable increase of money in the community?
  4. Make it clear that, even if the state should take possession of all the land and charge no rent, bread would not be cheapened.
  5. What is the usual relation of a low cost of production in the manufacturing industry to prices? What is the relation of a low cost of production to wages in the same industry? From your two conclusions what inference would you draw as to the effect of high wages in the United States on the ability of Americans to compete with foreigners in a common market?
  6. Give an example illustrating the working of reciprocal demand and supply, and point out its relations to cost of production.
  7. What made the coinage act of 1834 necessary?
  8. On whom does a house-tax fall?
  9. Explain the refunding operations in 1881, and state what has since been done with the bonds in question.
  10. Give the reasons which obliged the banks to suspend specie payments in 1861. In doing so, point out the necessary relation between the items in their accounts which led them to this step.
  11. Describe the two great financial successes of the war period, explain the character of the obligations offered by the Treasury, and state why success was gained.

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Papers Set for Final Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College. June, 1885. In bound volume: Examination Papers, 1883-86, pp. 9-10.

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Political Economy 2. Prof. Dunbar. 3 hours per week.

History of Economic Theory. — Selections from Leading Writers

Total: 21:  10 Seniors, 8 Juniors, 3 Others.

Source: Harvard University.  Report of the President of Harvard College, 1884-85, p. 86.

 

 

POLITICAL ECONOMY 2.
[Final Examination, June 1885]

  1. Comment on the following:—

“Do the facts of history bear out the theory [of Ricardo]? If they do we shall find (1) that in any given area the amount of the produce of the land obtained in earlier times is greater in proportion to the number of laborers; (2) that of two countries, or two districts in the same country, if other things be equal, the one that is poorest in people is the one in which the average degree of personal wealth and comfort is the highest; (3) that the share that falls to the landlord increases, and that which falls to the laborer diminishes, as more land is brought under cultivation.” (Thompson’s Social Science, p. 93.)

  1. George says:—

“It is not necessary to the production [even] of things that cannot be used as subsistence, or cannot be immediately utilized, that there should have been a previous production of the wealth required for the maintenance of the laborers while the production is going on. It is only necessary that there should be, somewhere within the circle of exchange, a contemporaneous production of sufficient subsistence for the laborers, and a willingness to exchange this subsistence for the thing on which the labor is being bestowed.”
Is the necessity of previously produced subsistence avoided by the fact of “contemporaneous production,” etc.?

  1. George presents the current statement of the laws of distribution in this form:—

Rent depends on the margin of cultivation, rising as it falls and falling as it rises.
Wages depend upon the ratio between the number of laborers and the amount of capital devoted to their employment.
Interest depends upon the equation between the supply of and demand for capital; or, as is stated of profits, upon wages (or the cost of labor), rising as wages fall, and falling as wages rise.

“In the current statement the laws of distribution have no common centre, no mutual relation; they are not correlating divisions of a whole, but measures of different qualities.”
Can you rewrite this “current statement” so as to present the correlation which Mr. George misses?

  1. Is there in rent any force of its own, enabling it to encroach upon wages and profits, or does it merely fill the space opened before it by other forces? What limit is there to this encroachment or expansion?
  2. Criticise the following as a statement of the Wages Fund theory:—
    “The means of purchase and the motives acting upon the minds of employers jointly determine the effective demand for labor, as the means of purchase and the play of motives determine the effective demand for a commodity.”
  3. Crocker says, p. 7:—
    “Our wealthy classes, wishing to accumulate still greater wealth, sought to use a large portion of their control or power over labor in creating profitable investments for themselves….Comparatively little harm would have been done if the new investments had simply turned out to be unprofitable, and the old ones had continued to supply the rich their accustomed dividends, and to the poor their accustomed wages. The mischief has been that the new investments have, by competition, ruined for the time being the old ones; dividends and wages have stopped, and the income of all, both rich and poor, being cut down, their demands upon labor have been greatly diminished, and the laborer has been left in idleness and without the means of procuring the necessaries of life.”
    Aside from all questions of fact,— what is the flaw in the above if the reasoning is bad, and what is the remedy for the evil if the reasoning is good?
  4. What is Mr. Carey’s theory as to the tendency (1) to decline in the value of commodities, and (2) to rise in the value of land; and how is this reconciled with his principle that the law of value is universal, embracing everything, “whether land, labor, or their products”?
  5. “With every increase in the facility of reproduction, there is a decline in the value of all existing things of a similar kind, attended by a diminution in the price paid for their use. The charge for the use of the existing money tends, therefore, to decline as man acquires control over the great forces provided by the Creator for his service; as is shown by the gradual diminution of the rate of interest in every advancing country.”
    What is the difficulty in this reasoning as to the rate of interest, and how would the reasoning apply in the case of a currency of inconvertible paper?
  6. How far can apparent resulting harmonies in the general working of society (as g. in Carey’s and Bastiat’s law of distribution between capital and labor) be accepted as a test of the truth of an economic proposition?

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Papers Set for Final Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College. June, 1885. In bound volume: Examination Papers, 1883-86, pp. 10-12.

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Political Economy 3. Prof. Laughlin. 2 hours per week. [Consent of instructor required]

Lectures and Discussion [of Practical Economic Questions]. Subjects: Money, Precious Metals, Bimetallism, American Shipping, History of Note-issues by Government and Banks. — One Thesis by each student on some practical question of the day, intended as an exercise in investigation

Total: 18:  10 Seniors, 7 Juniors, 1 Other.

Source: Harvard University.  Report of the President of Harvard College, 1884-85, p. 86.

 

 

POLITICAL ECONOMY 3.
[Final Examination, June 1885]

  1. Explain the proper theory of a subsidiary coinage. How far was this followed by Congress in first establishing our coinage?
  2. Discuss the bearing which by its advocates bimetallism is supposed to have on the stability of a standard of payments. What connection has the theory of a Multiple Standard to this discussion?
  3. How far can you safely reason from comparative tables of prices as to changes in the value of gold or silver?
  4. Discuss the efficacy of a bimetallic league of states in regulating the value of silver relatively to that of gold.
  5. Explain the causes which led to the remarkable fall of silver in 1876.
  6. State the causes which, in your opinion, led to the growth of American shipping to 1856.
  7. How far do you regard it true that the decline in American shipping was due to the consequences arising from the use of steam and iron in ships engaged in the foreign trade?
  8. What measures, if any, would you propose in order to reestablish our shipping?
  9. What is meant by an “elastic currency”? Compare, in this respect, the notes of the National Banks with the legal tender notes of the United States.
  10. Give (a) the reasons for the general adoption of the features of the New York Banking Act of 1838; and (b) the reasons which actually led to the establishment of the National Banking System in 1864.
  11. Discuss carefully some measure for giving security to National Bank notes when United States bonds shall be no longer obtainable for that purpose.

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Papers Set for Final Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College. June, 1885. In bound volume: Examination Papers, 1883-86, pp. 12-13.

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Political Economy 4. Prof. Dunbar. 3 hours per week.

Economic History of Europe and America since the Seven Years’ War. — Lectures

Total: 152:  61 Seniors, 43 Juniors, 37 Sophomores, 5 Freshmen, 2 Law, 4 Others.

Source: Harvard University.  Report of the President of Harvard College, 1884-85, p. 86.

 

 

POLITICAL ECONOMY 4.
[Final Examination, June 1885]

Omit two questions

  1. Why was the repeal of the corn laws decisive as to the adoption of free trade by England?
  2. How did the French and Indian currencies tend to prevent the fall of gold after 1850 from being still heavier?
  3. How important a place among the causes of the decline of American shipping belongs to the civil war?
  4. The effects of the civil war on the system of landholding in the South and its probable ultimate effects on Southern industry.
  5. The steps by which the war determined the subsequent tariff policy of the United States.
  6. The causes of the suddenly increased importance of our trade in breadstuffs in the last ten years.
  7. Why did the payment of the French indemnity of 1871 seriously affect England, Austria and the United States?
  8. The real loss or gain of France and Germany respectively by the payment of the indemnity.
  9. What were the heavy demands for gold from 1871 to 1883, and why did they fail to produce serious financial disturbance?
  10. The difference in the development of city and of country banks respectively, in the United States and in England, and the inference to be drawn as to the future development of the banking systems.
  11. Why is a “triangular trade” between nations convenient and why is England the great centre for such trade?
  12. As the English government does not own nor tax the coal mines, why should fear of increasing cost of extracting coal lead Mr. Gladstone to favor an energetic reduction of the national debt.

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Papers Set for Final Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College. June, 1885. In bound volume: Examination Papers, 1883-86, p. 13.

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Political Economy 5. Prof. Laughlin. 1 hour per week. [Consent of instructor required]

Economic Effects of Land Tenures in England, Ireland, France, and Germany

Omitted in 1884-85.

Source: Harvard University.  Report of the President of Harvard College, 1884-85, p. 86.

 

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Political Economy 6. Dr. Taussig. 1 hour per week. [Consent of instructor required]

History of Tariff Legislation in the United States, with discussion of principles. — Lectures

Total: 40:  1 Graduate, 26 Seniors, 10 Juniors, 3 Others.

Source: Harvard University.  Report of the President of Harvard College, 1884-85, p. 86.

 

POLITICAL ECONOMY 6
[Mid-Year Examination, 1885]

(Omit either question 3 or question 4.)

  1. Comment briefly on the following:—
    “There is not a single great branch of domestic manufactures which had not been established in some form in this country long before a protective tariff had been or could have been imposed. The manufacture of iron is nearly as old as the history of every colony or territory in which there is any iron ore. The manufacture of woolens is as old as the country itself, and was more truly a domestic manufacture when our ancestors were clothed with homespun than now. The manufacture of cotton is almost as old as the production of the fibre on our territory.”
  2. Compare the tariff act of 1816 with that of 1824, noting difference in (1) the general range of duties, (2) the circumstances under which they were passed, (3) the action taken in regard to them by the representatives of New England, the Middle States, and the South. It has been said that “the tariff of 1816 marks the beginning of protection in this country,” and that “the tariff of 1824 was our first tariff worthy of the name of protection.” Which of these statements is true, if either?
  3. Comment on the following:—
    “No protective duty was ever levied on a single article, the home manufacture of which grew to large proportions under that duty, without the price to the consumer growing cheaper, the duty thus being a boon instead of a tax.”
    “A duty on an imported article is invariably added to its price, at the cost of the buyer, and added also to the price of like articles made here.”
  4. State carefully the argument for the protection of young industries and mention the conditions, if any, which might justify the application of such protection.
  5. Give a brief critical statement of the views expressed by Hamilton, Gallatin, Clay, and Webster on the protective controversy.

Source:  Harvard University Archives. Examination papers in economics, 1882-1935. [Scrapbook of] Prof F. W. Taussig (HUC 7882).

 

POLITICAL ECONOMY 6.
[Final Examination, June 1885]

  1. State as nearly as you can the duties on the following articles from 1846 to 1884: pig-iron, steel-rails, wool, woollen cloths, silks, coffee, copper.
    Take any one of the following articles: pig-iron, wool, woollen cloths, silks, copper; and say something as to the economic effect of the duties on that one between 1860 and 1884.
  2. Give an account of the tariff act of 1864. Compare the tariff policy adopted in the United States after the close of the civil war, and with the policy of France after 1815.
  3. What has been the practice in our tariff acts since 1842 as regards the imposition of specific and ad valorem duties? Comment on the following: “It is an economic truth that the ad valorem system is the only equitable rule for assessing duties. With the whole power of a great government behind, there is no reason why the laws of the country should not be enforced. The outcry of undervaluation is simply a trick to blind the people, as it would be impossible to enact a law imposing duties of 80, 100, even 200 per cent. in the plain unvarnished form of ad valorem duties.”
  4. Comment briefly on two of the following:—
    (1)”The fairest and most satisfactory test of the effect of the tariff on prices is to compare prices of the same article under high and low tariffs. The average gold price of pig-iron before 1860 was $28.50 per ton; in recent years it has been $33.70. The average is higher by $5.20 under a high tariff than during the period of low duties.”
    (2) “Nothing can be more false than the claim of free trade advocates than that a duty is a tax that comes out of the farmers and artisans of this country. By far the greater part of the revenue collected on importations is the toll paid by people of other countries for the admission of their goods…I was assured by a score of manufacturers in England that the recent increase in the French tariff came out of their pockets, and not from the consumers in France; that they were compelled to sell their goods in France at the same price as before the increase of duty.”
    (3) “A conclusive answer to the assertion that the protective policy secures high wages to the laborers of this country, is found in the fact that wages are higher in the United States—absolutely and in comparison with the old world rates—in those industries which do not have, or confessedly do not need, protection.”
  5. Compare the grounds on which a policy of protection has been advocated in recent years with the grounds put forward in 1820-30, and give any reasons that may occur to you for changes in the arguments.

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Papers Set for Final Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College. June, 1885. In bound volume: Examination Papers, 1883-86, pp. 14-15.

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Political Economy 7. Prof. Dunbar. 1 hour per week. [Consent of instructor required]

Comparison of the Financial Systems of France, England, Germany, and the United States

Omitted in 1884-85.

Source: Harvard University. Report of the President of Harvard College, 1884-85, p. 86.

 

_______________________

Political Economy 8. Prof. Dunbar. 1 hour per week. [Consent of instructor required]

History of Financial Legislation in the United States.

Total: 39:  1 Graduate, 28 Seniors, 7 Juniors, 3 Others.

Source: Harvard University. Report of the President of Harvard College, 1884-85, p. 86.

 

POLITICAL ECONOMY 8
[Final Examination, June 1885]

[Omit two questions.]

  1. State the circumstances which led to the adoption of the Independent Treasury and hard money as the policy of the Democratic party.
  2. How close an approach had been made to the issue of a government currency, prior to the Act of July 17, 1861?
  3. What has been the legislation since 1861 on the taxation of United States bonds,
    (1) by national authority,
    (2) by State authority,
    and the reasons therefor?
  4. The causes of the failure of the movements for resumption from 1865-70.
  5. The reasons for and against the claim of authority, under which Mr. Richardson increased the outstanding legal tender notes from $356,000,000 to $382,000,000.
  6. Trace the origin of the present three percents of the United States.
  7. Criticise the following extract from Mr Boutwell’s Finance Report of 1872:—
    “As the circulation of a bank is a source of profit, and as the managers are usually disposed to oblige their patrons by loans and accommodations, it can never be wise to allow banks or parties who have pecuniary interests at stake to increase or diminish the volume of currency in the country at their pleasure. Nor do I find in the condition of things a law or rule on which we can safely rely. Upon these views I form the conclusion that the circulation of the banks should be fixed and limited, and that the power to change the volume of paper in circulation, within limits established by law, should remain in the Treasury Department….
    “The problem is to find a way of increasing the currency for moving the crops and diminishing it at once when that work is done. This is a necessary work, and, inasmuch as it cannot be confided to the banks, where, but in the Treasury Department, can the power be reposed?”

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Papers Set for Final Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College. June, 1885. In bound volume: Examination Papers, 1883-86, p. 15.

Images Source:  Harvard Library, Hollis Images. Charles F. Dunbar (left) and James Laurence Laughlin (middle) and Frank W. Taussig (right).

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Minnesota. Interview about banking/financial historians. Heaton, 1955

In an earlier post we are provided with a glimpse of Minnesota professor Herbert Heaton’s wit in his answer to the question “What are economic historians made of?“. In preparing that post, I came across the following 1955 interview that provided some background assessments of economic historians who he judged might have been interesting for a Brookings project on the history of the Federal Reserve System.

A 2007 tribute from the Newsletter of the Economic History Association has been appended to this post for further biographical/career information.

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Backstory to Heaton Interview

In 1954, the Rockefeller Foundation awarded a grant to the Brookings Institution to undertake “a comprehensive history of the Federal Reserve System.” The collection consists of documents gathered or generated between 1954 and 1958, during the course of the Committee’s work.

MA (the interviewer below) was Mildred Adams “a New York journalist specializing in economic affairs”.

“Deputy Treasurer of the United States W. Randolph Burgess expressed his interest in writing a “definitive” history of the Federal Reserve System when he retired from federal service….”

“On January 21, 1954, the Rockefeller Foundation awarded a grant of $10,000 to the committee for an ‘exploratory study of the historical materials relating to the Federal Reserve System.’ The grant was to be administered by Brookings.”

“From January 1954 to June 1956, Mildred Adams served as research director of the project….Meanwhile, however, Burgess had been appointed under secretary of the Treasury and decided that he would not be able to start the planned comprehensive history any time soon. The committee spent the next two years searching for an able economic historian to assume direction of this major study.”

“By the spring of 1956, the committee’s failure to find a qualified scholar and Allan Sproul’s retirement from the Federal Reserve Bank of New York and subsequent resignation as chairman of the committee caused problems. With no historian, the committee redefined its goals and requested the Rockefeller Foundation to relieve the committee of its obligation to write a ‘definitive’ major study and instead allow it to encourage smaller, topical studies of the Federal Reserve System.”

Source:  Federal Reserve Bank of St. Louis. FRASER. Committee on the History of the Federal Reserve System: Guide to the Brookings Institution Archives.

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Notes from interview with Herbert Heaton

June 11, 1955

Internal Memorandum

Interview with Dr. Herbert Heaton, Professor of Economic History at the University of Minnesota

I went out to see Dr. Heaton on a Saturday morning at his home in Minneapolis and found him a charming Yorkshireman with a delightful sense of humor and a wide knowledge of both economics and history. Were he a little younger, he might prove to be the ideal person to do this work, although I have not yet read his books. I discussed the whole project with him in detail and then asked for any suggestions of people he might have for our purposes.

Dr. Heaton confirmed what we have already found, namely that the field is a rather arid one in the realm where history and economics meet. He himself had been on the committee which set up the economic history group with which Professor Arthur Cole of Harvard works. He agreed with Dr. [Walter W.] Stewart that that had rather worked itself out, though he said that the Hidys [Ralph Willard Hidy and Muriel E. (Wagenhauser) Hidy] were doing good work in their chosen field. They are to spend this summer in Minneapolis working on the Weyerhauser Lumber business.

Dr. Heaton said that John [K.] Langum was a brilliant student in the Harvard Business School. He had a minor in economic history and a fine historical sense.

He suggested that we talk to [Charles] Ray Whittlesey of the Wharton School who is interested in banking history. He thought that Whittlesey might have useful recommendations and called him one of the best insofar as historical interests in economic matters are concerned.

He spoke of Herman Kruse [sic, Herman E. Krooss] of New York University as someone who wrote well on financial history. He said that Mr. Kruse had energy, capacity and ability to handle material, but he seemed to think that he was lacking in tact, and he was not quite sure what he might do with an assignment in this project.

A young man named Robert Jost, now at Minnesota doing a doctor’s thesis on the Chatfield Bank, may be a possibility later on in the project, depending on what he makes of the Chatfield Bank. It is a small bank in Minnesota which, for some fortunate reason, has kept all its records and is making a very interesting study.

At the University of Wisconsin Dr. Heaton said that Rondo Cameron was working on the Credit Mobilier in Paris was worth watching. This again is a matter of seeing what he turns out.

He said that [Walter] Rostow at M.I.T., who has been devoting himself to business cycles, would ask the right questions of the material. Rostow has a quick mind and the right range of interests for this project. Oxford and Cambridge had both invited him for next year. His research expert is Mrs. [Anna] Schwartz. His brother [Eugene Rostow] is Dean of the Law School at Yale. In Dr. Heaton’s opinion, Mr. Rostow ought certainly to be explored.

Dr. Heaton says that Arthur Marget is someone he has known in the past as being brilliant on history or theory. He did not know that Mr. Marget had now gone to the Board and wondered if this might rule him out so far as the international sphere is concerned.

He also spoke of Frank A. Knox, who got his Ph.D at the University of Chicago and now writes reviews in the Canadian Journal of Economic and Political Science. Mr. Knox has not published much, but he is worth watching in Dr. Heaton’s opinion.

Dr. Heaton promised to keep the project in mind. He will talk with his associates about it and will send us any other suggestions which come up in the course of his work at the University of Minnesota.

We explored the things which he himself was doing, and he said that he had just turned 65 and did not believe that one should take on these big projects after that age. I had the feeling that he might, however, be interested in the project sufficiently so that he would take a piece of it. I had no authority to discuss it with him at that time, but I think this is worth considering. As a beginning, it might be worthwhile to read his “Economic History of Europe.”

MA:IB

Source:  Federal Reserve Bank of St. Louis. FRASER. Committee on the History of the Federal Reserve System.

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Past Presidents of the EHA:
Herbert Heaton

Herbert Heaton was one of the founding members of the Economic History Association, serving as one of its two inaugural vice presidents, ascending to the presidency in 1949, and remaining active in the association until his death. Along with E.A.J. Johnson and Arthur Cole, he drafted a grant application to the Rockefeller Foundation, which resulted in a $300,000 award in December of 1940. The grant financed research in economic history over the next four years. Heaton was a member of the original board of trustees of the EHA. Each of the five original members went on to serve as president of the association: Edwin F. Gay (1941-42), Heaton (1949-50), Earl J. Hamilton (1951-52), E.A.J. Johnson (1961-62), and Shepard B. Clough (1969).

Heaton was active in the formation of the EHA and was personally responsible for the recruitment of most of the members from the Midwest. He was an enthusiastic scholar of the evolution and applications of economic history, authoring several articles on the history of the discipline and a biography of Edwin Gay, the first president of the EHA. In an article entitled “Clio’s New Overalls,” published in The Canadian Journal of Economics and Political Science(November, 1954), Heaton was one of the first authors to discuss the marriage of clio and its metric partner in regard to the study of economic history. His discussion of the metric side of the equation was anything but enthusiastic however. Instead, he criticized the tendency of young scholars to use technical tools to make precise measurements of what he considered to be inaccurate data.

Heaton was born in England on June 6, 1890, the son of a blacksmith. He studied history and economics at the University of Leeds, earning his B.A. in 1911. He earned his M.A. in 1912 from the London School of Economics before accepting a position as assistant lecturer in economics under (Sir) William Ashley at the University of Birmingham. While there, he earned another Masters degree in 1914. He then moved to Australia and began a post as lecturer in history and economics at the University of Tasmania.

While in Tasmania Heaton developed the study of economics and encouraged research into Australian economic history. His controversial comments on the war provoked the censure of the more conservative elements of the Tasmanian press and public. In 1917 he moved to the University of Adelaide where he expanded the economics discipline and developed the diploma of commerce. Once again his liberal opinions aroused the ire of the conservative business class. Heaton argued that capitalism was the root of all the evils of individual and corporate life. He subscribed to the Marxist belief that capitalism would eventually give way to socialism. Consequently, the university refused to establish a degree in economics while Heaton led the discipline. As a means of preserving his academic career, he accepted a chair of economic and political science at Queen’s University in Kingston, Ontario in 1925. He stayed in Canada for two years before moving to the University of Minnesota, where he remained until he retired in 1958.

In 1936, Heaton compiled his research on Europe and published the Economic History of Europe, which was for a long time the standard text on the subject. Heaton said that he wrote the book especially for students with no background in economic history. He summed up economic history as the story of how man has worked to satisfy his material wants, in an environment provided by nature, but capable of improvement, in an organization made up of his relations with his fellows, and in a political unit whose head enjoys far-reaching power to aid, control, and appropriate. Such lofty views of the discipline were what made Heaton such a dedicated and valuable member of the Economic History Association.

Herbert Heaton died on January 24, 1973 in Minneapolis, survived by his three Australian-born children and his wife Marjorie Edith Ronson. He was an active scholar to the end of his life, publishing his ninth and final article in the JEH in June of 1969, nearly 28 years after his first JEH appearance.

Sources

Archives of the Economic History Association, Hagley Museum, Wilmington, DE.

Blaug, Mark, ed., Who’ s who in economics: a biographical dictionary of major economists, 1700-1986, Cambridge, MA: MIT Press, 1986, 2nd ed.

Bourke, Helen, “Heaton, Herbert (1890-1973),” Australian Dictionary of Biography, Vol. 9, Melbourne: Melbourne University Press, 1983, pp. 250-251.

Cole, Arthur H., “Economic History in the United States: Formative Years of a Discipline,” The Journal of Economic History, Vol. 28, No. 4 (Dec., 1968), pp. 556-589.

de Rouvray, Cristel, “‘Old’ Economic History in the United States: 1939- 1954,” Journal of the History of Economic Thought, Vol. 26, No. 2 (June, 2004), pp. 221-39.

Harte, N.B., “Herbert Heaton, 1890-1973: A Biographical Note and a Bibliography [Obituary],” Textile History Vol. 5 (1974), p. 7.

Payne, Elizabeth, “Herbert Heaton,” term paper for Professor Robert Whaples, Wake Forest University, 2006.

Selected writings of Herbert Heaton

“Heckscher on Mercantilism,” The Journal of Political Economy, Vol. 45, No. 3 (June, 1937), pp. 370-93.

“Rigidity in Business Since the Industrial Revolution,” The American Economic Review, Vol. 30, No. 1, Part 2, Supplement, Papers and Proceedings of the Fifty-second Annual Meeting of the American Economic Association (Mar., 1940), pp. 306-313.

“Non-Importation, 1806-1812,” The Journal of Economic History, Vol. 1, No. 2 (Nov., 1941), pp. 178-98.

“The Early History of the Economic History Association,” The Journal of Economic History, Vol. 1, Supplement: The Tasks of Economic History (Dec., 1941), pp. 107-09.

“Recent Developments in Economic History,” The American Historical Review, Vol. 47, No. 4 (July, 1942) pp. 727- 46.

“The Making of an Economic Historian,” The Journal of Economic History, Vol. 9, Supplement: The Tasks of Economic History (1949), pp. 1-18.

“Clio’ s New Overalls,” The Canadian Journal of Economics and Political Science, Vol. 20, No. 4 (Nov., 1954), pp. 467-77.

“Twenty-Five Years of the Economic History Association: A Reflective Evaluation,” The Journal of Economic History, Vol. 25, No. 4 (Dec., 1965), pp. 465-79.

Modern economic history, with special reference to Australia, Melbourne: Macmillan & Co., 1925.

A history of trade and commerce, with special reference to Canada, Toronto: T. Nelson & Sons, 1928.

The British Way to Recovery: Plans and Policies in Great Britain, Australia, and Canada, Minneapolis: University of Minnesota Press, 1934.

Economic History of Europe, New York: Harper, 1948.

A Scholar in Action, Edwin F. Gay, Cambridge: Harvard University Press, 1952.

 

Source: Past Presidents of the EHA: Herbert Heaton, The Newsletter of the Economic History Association (ed. Michael Haupert), No. 31 (December 2007), pp. 16-18.

Image SourceNewsletter of the Economic History Association, No. 31 (December 2007), p. 16.

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Harvard. Economics PhD Alumnus. Donald Holmes Wallace, 1931

 

The previous post included lists of books used for undergraduate and graduate courses dealing with the economics of railroad regulation taught at Harvard in the mid-1930s. The list was put together by Donald Holmes Wallace who was a recent Harvard Ph.D. graduate and soon to be appointed to an assistant professorship in economics.

His career was cut short at age 50 by a heart attack. His early promise was recognized with the award of the prestigious David A. Wells prize for his 1931 dissertation on the aluminum industry.

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Ph.D. 1931

Donald Holmes Wallace, A.B. 1924, A.M. 1928.

Subject, Economics. Special Field, Economics of Corporate Organization. Thesis, “The Aluminum Monopoly in the United States.”

Source: Harvard University. Report of the President of Harvard College, 1930-31, p. 120.

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Donald Holmes Wallace
(1903-1953)

Born in West Chester, PA, June 29, 1903.

1924. A.B. Harvard.

1924. Taught at the Suffield school in Suffield, CT.

1925. Instructor in economics at the University of Vermont.

1926-27. Assistant in economics at Harvard

1927-36. Instructor and tutor in economics at Harvard.

1928. A.M., Harvard.

1931. Ph.D., Harvard. Thesis: The Aluminum Monopoly in the United States.
Awarded the David A. Wells dissertation prize 1933-34.

1931-32. Year in Europe funded by a Social Science Research Council grant.

1937. Revised version of dissertation published by Harvard University Press: Market Control in the Aluminum Industry.  “The present study first took partial form as a doctoral dissertation (presented in 1931) upon the aluminum monopoly in the United States. Thereafter, the scope of the inquiry was widened to include market control in Europe and international relations in this industry.”–Preface.

1937-39. Assistant professor of economics at Harvard

1939. Associate professor of economics at Williams.

1939. Part-time economist for the Department of Labor

1940. Consultant of the National Defense Advisory Commission

1941. Consultant of the Office of Price Administration

1942-43. Director of OPA industrial manufacturing price division.

1943, Summer. Acting deputy administrator for prices of OPA.

1943-1945. (He resigned from Williams in 1945) Economic adviser to the deputy price administrator.

1945-1953. American Economic Association’s representative on the National Bureau of Economic Research.

1946-47. Member of the staff of the Council of Economic Advisers.

1948. Hired by Princeton “to inaugurate the graduate study program of Woodrow Wilson School, as well as apppointment as Professor of Economics.

1951. Vice-President of the American Economic Association.

1953, September 19. Died in Princeton, NJ. [Final position: Director of the Graduate Program of the Woodrow Wilson School of Public and International Affairs]

SourceNorth Adams Transcript (MA), September 21, 1943, p. 3; Eveline M. Burns “In Memoriam, Donald Holmes Wallace”, AER, Papers and Proceedings (May, 1954), p. 696.

Image Source: Dr. Donald H. Wallace. Head Economic Analyst, Office of Price Administration (OPA) and Civilian Supply. From the Farm Security Administration/Office of War Information Photograph Collection. Library of Congress, Prints and Photographs Division, Washington, D.C.