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Kansas. Birth of seminary of historical and political science. Blackmar, 1889

 

A 35 year old Johns Hopkins University Ph.D., Frank Wilson Blackmar, was appointed professor of History and Sociology at the University of Kansas starting in the fall semester of 1889. He joined  the history and civics professor James Hulme Canfield to establish a joint seminary of historical and political science in Lawrence, Kansas. The seminary was to serve as a social scientific laboratory following the model of historical seminaries established earlier in German universities and later transferred to North American universities such as Johns Hopkins during the last third of the 19th century. Blackmar’s Ph.D. subjects were History, Political Economy and Literature and he taught a broad range of courses in political economy, sociology, cultural and intellectual history, as well as social policy at Kansas. He wrote textbooks for both economics and sociology but he eventually left economics for what he must have perceived to be the virgin fields of sociology, a career path similar to that taken by Franklin H. Giddings at Columbia. In 1919 he served as president of the American Sociological Association. 

Frank W. Blackmar served his university for forty years until being unceremoniously shown the door to retirement by his department in 1929. He was even forced to suffer the indignity of witnessing his own venerable sociology textbook dropped for a younger competitor.

Still Blackmar is of interest to us as one of the first generation wave of newly minted Ph.D.’s who were in search of their scientific fortune across the vast expanse of the United States at the end of the 19th century. He also serves as a reminder that the disciplinary wall between economics and sociology was then little more than a speed-bump compared to the well-fortified border today.

This is a long post so I provide the following intrapost links for ease of navigation:

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Frank Wilson Blackmar

1854. Born November 3 in West Springfield, Pennsylvania.

1874. Graduated at the Northwestern State Normal School at Edinboro, Erie county, Pennsylvania.

1874-75. Taught at West Mill Creek school at Erie.

1875-78. Taught in California public schools.

1878. Enrolled at the University of the Pacific (San Jose, California).

1881. Ph.B. with honors from the University of the Pacific.

1881-82. Taught mathematics in the San Jose High School.

1882-86. Professor of mathematics in the University of the Pacific

1884. A.M. in mathematics and literature from the University of the Pacific.

1885. Married Mary S. Bowman, daughter of Rev. G.B. Bowman, of San Jose.

1886-89. Graduate student and fellow of Johns Hopkins University.

1887-88. Instructor in history.
1888-89. Fellow in history and politics.
1889. June 13. Awarded Ph.D. Thesis: “Spanish Colonization in the Southwest.” Subjects: History, Political Economy and English.  Source: Johns Hopkins University, University Circulars, July 1889, p. 97.

1889-1929. University of Kansas.

1889-1899. Professor of history and sociology.
1889. Course in political economy. Thirteen students enrolled (University Kansan, September 27, 1889, p. 1)
1890. Course “Elements of Sociology” introduced.
1893. Course “Status of Woman” introduced.
1897. Course “Questions of Practical Sociology” introduced.
1897. Course “Remedial and Corrective Agencies” introduced.
1899-1912. Professor of sociology and economics.
1912-1926. Professor of sociology.
1899-1926. Head of the Department of Sociology.
1896-1922. Dean of the Graduate School
1929. Retirement forced at age 74 after 40 years of service to the University. His request to continue full-teaching and full-salary until June 1930 was denied.

1900-02. President of the Kansas Conference of Social Work.

1919. Ninth president of the American Sociological Society

1931. March 30. Died from influenza in Lawrence, Kansas.

Books, monographs, reports

The Study of History and Sociology. Topeka: Kansas Printing Office, 1890.

Spanish Colonization in the Southwest. Baltimore: Johns Hopkins Press, 1890.

The History of Federal and State Aid to Higher Education. U.S. Bureau of Education, Circular of Information No. 9, 1890. Contributions to American Educational History, edited by Herbert B. Adams. Washington, D.C.: Government Printing Office, 1890.

Spanish Institutions in the Southwest. Baltimore: The Johns Hopkins Press, 1891.

The Story of Human Progress, 1896.

Higher Education in Kansas. U.S. Bureau of Education, Circular of Information No. 2, 1890.

Economics. Topeka, Kansas: Crane & Company, 1900.

Spanish Colonial Policy. Publications of the American Economic Association. Vol. 1 (3), 1900, pp. 112-143.

The Study of History, Sociology, and Economics. Topeka, Kansas: Crane & Company, 1901.

The Life of Charles Robinson, the First Governor of Kansas. Topeka, Kansas: Crane & Company, 1902.

The Elements of Sociology. New York: The MacMillan Co., 1905.  [In the Citizen’s Library series ed. by Richard T. Ely]

Kansas: a cyclopedia of state history, embracing events, institutions, industries, counties, cities, towns, prominent persons, etc. (2 vols.) edited by Frank W. Blackmar. Chicago: Standard Pub. Co. Volume I;  Volume II.

Economics for High Schools and Academies. New York: The Macmillan Company, 1907.

Report on the Penitentiary to Governor Geo. H. Hodges. Topeka, Kansas: Kansas State Printing Office, 1914.

Outlines of Sociology, with J.G. Gillin. New York: The MacMillan Company, 1915. [Published in series: Social Science Textbooks, edited by Richard T. Ely. Note: Ely’s own contribution to the series bears the analogous title “Outlines of Economics”]

First edition (1915);
Revised edition (1923);
Third edition (1930).

History of the Kansas State Council of Defense. Topeka, Kansas: Kansas State Printing Plant, December 1920.

Lawrence Social Survey (joint with Ernest W. Burgess). Topeka, Kansas: Kansas State Printing Plant, 1917.

Justifiable Individualism. New York: Thomas Y. Crowell Company, 1922.

History of Human Society. New York: Charles Scribner’s Sons, 1926.

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Newspaper accounts regarding Blackmar’s appointment

PROF. BLACKMAR SELECTED.
A Good Man Elected to the New Chair of History and Sociology.

At the last meeting of the board of regents of the University, Prof. James H. Canfield recommended that instead of having an assistant as fixed by the legislature, a new chair be created to be known as History and Sociology. Prof. Canfield laid out the work to be pursued by each chair and two chairs were created by the regents as advised by him and he was allowed to have his choice and he took American History and Civics.

To-day the regents, after careful consideration of all the applicants, selected Prof. Frank W. Blackmar, who is taking an advanced course at Johns Hopkins University. Prof. Blackmar is a man of experience and is a graduate of the University of the Pacific at San Jose, Cal. For several years he has been professor of mathematics at that place. The following letter to the regents bears Mr. Blackmar good recommendations:

 

JOHNS HOPKINS UNIVERSITY,
Baltimore, Md.

“The best man I can suggest for your purpose is Mr. F. W. Blackmar, our senior fellow in History and Politics. He was for some years professor in a California college before coming here and has just received an offer of $1500 to go to Mills College in that state. He used to receive $2000, but deliberately threw up a good place in mathematics for the sake of studying history. He is a man of fine character and ability with lots of hard sense and good tact, withal a good speaker and writer. I have employed him upon the most important of all the government monographs, the Relation of Federal and State Aid to Higher Education, a work covering the financial history of education in thirty-eight states. His report has just been accepted in Washington and will do Blackmar great honor. In fact he can get almost anything he wants after that report is published. You will be lucky if you catch him early and you will have to give him all the law allows. I shall recommend Blackmar to the vacancy arising at Bryn Mawr, where Woodrow Wilson used to be, if I am asked to nominate. Blackmar is married, has had experience as a co-educator, and has served as an assistant here, as well as a popular lecturer to workingmen. I have just answered three applications for professors, but have given you the best man

Very truly,
H. B. Adams.

 

With Professors Blackmar and Canfield in the political history department of the University, that department is sure to become one of the most attractive in the University.

Prof. Blackmar is a protectionist, a Republican and a member of the M. E. [Methodist Episcopal] church.

The “Athens of Kansas” welcomes Prof. and Mrs. Blackmar to her midst and we trust that they will find Lawrence a pleasant place in which to live. The success of securing such an able man is due largely to Prof. Canfield and Regent Spangler and the University is to be congratulated upon the new accession to the already strong faculty.

Source: The Evening Tribune, Lawrence, Kansas. Wednesday, May 8, 1889, p. 3.

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The New Chairs.

The University has taken so many strides towards the front during the past four or five years, that each step has ceased to attract special notice. But a change has just been made which deserves mention, and which has already attracted wide-spread attention and favorable comment.

For several years Professor Canfield has urged a division of his chair, that broader work might be offered in History and in Citizenship. The Board has never been able to meet the necessary expenses of such enlargement, and the work has been carried or driven toward success under many embarrassments.

But now the Regents find the funds on hand for a new chair, and have determined to establish it in this department. Accordingly a special committee has been in consultation with Professor Canfield, and together they have elaborated courses that are peculiarly attractive.

At his own request Professor Canfield retains the work in American History and Civics, which will hereafter be the title of his chair. American History is the favorite option. “Constitutional and Political History of the United States,” elaborated and given daily instead of three times a week. This work absorbs “Colonial History,” “Finance and Diplomacy of the Revolution,” and the “Federalist.” In addition to this will be offered work in Constitutional Law, Public Finance and Banking, Local Law and Administration, and International Law and Diplomacy.

The second chair will be History and Sociology.

It is not possible to say now who the new Professors will be, nor what work will be offered. But the two chairs will work together—the work of one really preparing for that of the other, and together they will make a strong team.

This division of the old chair gives just twice the latitude in choice of options and elections, and the number of students eager to avail themselves of this opportunity is very large.

LATER.

Prof. Frank W. Blackmar, formerly a Professor in the University of the Pacific, and at present a fellow in Johns Hopkins, has been appointed to the chair of History and Sociology, which was recently created by the division of Prof. Canfield’s work Prof. Blackmar comes with the best of recommendations, and will be a strong addition to the faculty.

Source: University Times, Lawrence, Kansas. Friday, May 10, 1889, p. 2.

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Prof. F. W. Blackmar.

The rumor as to the appointment of Prof. F. W. Blackmar of Johns Hopkins University has been proven true. Through the kindness of Regent Spangler the Journal is enabled to print the following letter concerning Mr. Blackmar:

JOHNS HOPKINS UNIVERSITY,
BALTIMORE, Md., April 13, 1889.

To the Trustees of Kansas State University—Gentlemen:

Allow me strongly to recommend for your new chair of History and Sociology, Mr. F. W. Blackmar, our Senior Fellow in these subjects. He was for four years Professor of Mathematics in his alma mater, the University of the Pacific, where he proved such a good administrative officer that at one time he served as the deputy of the President. We have thought so highly of his ability as a teacher and as a manager of young men that last year we put him in charge of a large class in History in our undergraduate department. He taught the class to our entire satisfaction. This year as Fellow he has not been allowed to teach, but has given his entire attention to original investigation. Besides writing a scholarly thesis on “Spanish Colonization in the Southwest,” based upon Spanish and other original authorities, he has completed under my direction a most elaborate government report on “The Relation of Federal and State Aid to the Higher Education,” or a financial history of American Colleges and universities in so far as they have been supported or assisted by government appropriations. This report, I am confident, will give Mr. Blackmar a national reputation, for it will meet the needs of every State board of trustees and of all superintendents of education in these United States. In addition to this government and university work, Mr. Blackmar has lent a hand in various popular lecture courses which I have instituted here in Baltimore. I append the printed outlines of one or two of his lectures. He is a man who can go before the people, if necessary, and make himself understood on practical questions. He takes a strong interest in social science, or questions affecting the public health and welfare, such as Sanitation, Charities, the Relation of the State and City to the care of Paupers, the Insane, the Blind, the Deaf and Dumb, etc. If you should see fit to appoint Mr. Blackmar to Historical. Economic and Social Science, it would be wise to encourage him during the coming summer to visit the leading charitable institutions of New York and Massachusetts, and to acquire a practical knowledge of the best methods, from interviews with men like Mr. Brockway, of the Elmira Reformatory, and with Mr. F. S. Sanborn, long secretary of the State Board of Charities in Massachusetts, and at one time lecturer upon these subjects at Cornell University. There is a great field here for a well-trained University man. With knowledge of the best experience of the world he can promote the usefulness and economy of charitable institutions throughout an entire state or city. The Johns Hopkins University is pushing men into this new field. Two of our graduates in succession have served as Secretary of the Organized Charities of Baltimore. Another has similar position in Brooklyn. A fourth has just been made Secretary of the New York State Charities Aid Association, an office which brings him into active relation with all the charitable institutions of both city and state. I emphasize these facts because they show the practical bearings of Social Science when properly represented in a University.

Let me say, in conclusion, that Mr. Blackmar is a young man of excellent moral character, a Christian gentleman, married and in good health, although just now a little overworked while preparing for his degree as Doctor of Philosophy. He is perfectly safe in all economic and social questions and is naturally endowed with a good stock of common sense.

Very respectfully recommended,
H. B. Adams.
In charge of the Department of History and Politics.

Mr. Blackwar is 34 years of age and a native of Erie county, Pa. In 1874 he graduated at the Northwestern State Normal school at Edinboro, Erie county, Pa.; the following year he taught the West Mill Creek school at Erie, at the same time carrying on studies preparatory for college. In the autumn of 1875 he went to California and there engaged in teaching in the public schools for a term of three years; in 1878 entered the University of the Pacific, San Jose, California, and graduated from that institution in 1881 receiving the degree of Ph.B. The following year he engaged in teaching mathematics in the San Jose High School. In 1882 he was called to the chair of mathematics in the University of the Pacific which he filled acceptably for a term of four years. In 1884 he received the degree of A.M. on account of work done in mathematics and literature.

In the following year he was married to Miss Mary S. Bowman, daughter of Rev. G. B. Bowman, of San Jose.

In 1886 he entered Johns Hopkins University, when he was appointed instructor in 1887 and fellow in history and politics in 1888.

Source: Lawrence Daily Journal, Lawrence, Kansas. Friday, May 10, 1889, p. 3.

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Prof. Blackmar Elected.

Tuesday the board of regents after the consideration of all the applicants elected Prof. Frank W. Blackmar, who is now taking an advanced course at John Hopkins, to fill the associate chair in the history department. Prof. Blackmar is a graduate of the University of the Pacific, a republican, a prohibitionist, a Phi [Kappa] Psi. The following letter to the regents bears Prof. Blackmar good recommendations, and the Courier bids him welcome.

JOHNS HOPKINS UNIVERSITY,
Baltimore, Md.

“The best man I can suggest for your purpose is Mr. F. W. Blackmar, our senior fellow in History and Politics. He was for some years professor in a California college before coming here and has just received an offer of $1500 to go to Mills College in that state. He used to receive $2000, but deliberately threw up a good place in mathematics for the sake of studying history. He is a man of fine character and ability with lots of hard sense and good tact, withal a good speaker and writer. I have employed him upon the most important of all the government monographs, the Relation of Federal and State Aid to Higher Education, a work covering the financial history of education in thirty-eight states. His report has just been accepted in Washington and will do Blackmar great honor. In fact he can get almost anything he wants after that report is published. You will be lucky if you catch him early and you will have to give him all the law allows. I shall recommend Blackmar to the vacancy arising at Bryn Mawr, where Woodrow Wilson used to be, if I am asked to nominate. Blackmar is married, has had experience as a co-educator, and has served as an assistant here, as well as a popular lecturer to workingmen. I have just answered three applications for professors, but have given you the best man

Very truly,
H.B. Adams.

Source: The University Courier, Lawrence, Kansas. Friday, May 10, 1889, p. 2.

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FRANK W. BLACKMAR

An extended sketch of Prof. Blackmar was given in The Courier last Spring, but for the benefit of the new students we reproduce a part of it. Prof. Blackmar is a native of Pa., and graduated from the Northwestern Normal School in 1874. He then went to California and taught a few years in the Public Schools of that State. He then entered the University of the Pacific, and graduated with honors with the class of ’81. He taught in the San Jose High School, and was then called back to the University of the Pacific to fill the chair of mathematics. This position he held until 1886, when he resigned to pursue a post graduate course in Johns Hopkins. During the year 1887-8, he was an instructor in History at that institution, and at the time of his election to the chair of History and Sociology in the University last spring, was a Fellow in History and Politics at Johns Hopkins. He is a member of Phi [Kappa] Psi Fraternity, having joined that organization while a student at the University of the Pacific. He took his degree of Ph.D. last June, at Johns Hopkins, the subjects covered in his course being History, Political Economy and English.

Source: The University Courier, Lawrence, Kansas. Friday, August 16, 1889, p. 2.

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Department of History, Politics and Sociology—A Circular Issued Covering the Work in that Department.

The department of history in the State University has just issued a circular covering the work in that department. By the division of the chair of history and the election of an additional professor in that department the long wished for equalizing of the course was attained and under the name of American History and Civics and History and Sociology the University presents as strong and comprehensive course in that line of college work as any other college in the country. In order that our readers may know for themselves the extent of this course and also the division of the work between Prof. Canfield and Prof. Blackmer we print the circular entire.

HISTORY, POLITICS AND SOCIOLOGY.

The following statement covers the work of the last two years of the University course, and is made in answer to many inquiries received by the instructors in charge of these topics.*

Instruction in History, Polities, and Sociology is given by means of lectures, recitations, discussions, conference, and personal direction in study and research. Special pains are taken to facilitate the use of the University library by students taking these topics; authorities closely connected with the work in hand being withheld from general circulation, and rendered more available by carefully prepared card indexes.

AMERICAN HISTORY AND CIVICS. — JAMES H. CANFIELD.

American History. — Instruction is given daily for two years in American History. The course has been prepared with especial care, with the thought that a thorough knowledge of the origin and development of the Nation is one of the most essential conditions of good citizenship. Marked attention is given to social life and institutional and industrial development; to the financial experiments of the general government, and to diplomatic relations; to the failure of the confederation, the struggle for the constitution, and to the text of the constitution itself; and to the constitutional and political history of the Union from 1789 to the present. For this the library now offers special facilities, in a complete Congressional Record, from the first Continental Congress to the present (including the Secret Journals and Diplomatic Correspondence), a complete set of Niles’ Register, and in a large collection of other public documents.

Local Administration and Law. — Lectures three times each week during the first term,† covering the management of public affairs in districts, townships, counties, cities, and States. This course is intended to increase the sense of the importance of home government, as well as to give instruction in its practical details.

Public Finance and Banking. — Lectures twice each week during the first term, on National, State, and municipal financiering; and on theoretical and practical banking, with the details of bank management.

Constitutional Law. — Lectures three times each week during the second term, on the constitution of the United States; with brief sketches of the institution and events that preceded its adoption, and with special attention to the sources and methods of its interpretation.

International Law and Diplomacy. — Lectures twice each week during the second term on the rise and growth of international law, and on the history of American diplomacy.

In all this work constant effort is made to determine the historic facts (as opposed to mere theorizing), to secure a fair presentation of opposing views, to promote free discussion and inquiry, and to encourage as complete personal investigation of all authorities as the University library permits. This method is thought to furnish the best conditions for sound opinion and individual judgment, while controlling neither.

HISTORY AND SOCIOLOGY.
— FRANK W. BLACKMAR.

The aim in the following courses is to give a comprehensive knowledge of the great topics of history, and to investigate general social, political, and economic phenomena and theories — especially those of Europe.

Instruction will be given daily throughout the first term, as follows:

English History. — This course embraces a careful study of the English people and the growth of the English nation, including a general survey of race elements, and of social and political institutions.

The Intellectual Development of Europe. — A course of lectures tracing the history and philosophy of intellectual progress from early Greek society to modern times.
Particular attention is given to the influence of Greek philosophy, the Christian church, the relation of learning to liberal government, and of the rise of modern nationality.

Political Economy. — The fundamental and elementary principles will be discussed, and will be elaborated by descriptive and historical methods. A brief historical sketch of Political Economy may be given at the close of the course.

The second term’s work includes the following courses:

Institutional History. — Lectures three times each week, on Comparative Politics. The history of Germanic institutions will constitute the main body of the course.

The Rise of Democracy. — Lectures twice each week, on the rise of popular power and the growth of political liberty throughout Europe.

Elements of Sociology. — Lectures three times each week, on the evolution of social institutions from the primitive unit, the family; including a discussion of the laws and conditions which tend to organize society. The latter part of the course will be devoted to the elements of modern social science as preliminary to the consideration of the problems of the day.

Land and Land Tenures. — Twice each week. The course will begin with a discussion of the Roman land question and extend to the Feudal land systems of France and England, and thence to the consideration of modern land tenures of Great Britain and of the United States.

Practice Course in Economics. — A full term’s work applied in economics and in the elements of social science; consisting of conferences, discussions, practical ob-servation, and the preparation of a thesis of not less than twenty thousand words on some special topic selected by each student

All general correspondence should be addressed to the Chancellor of the University; special correspondence, to either of the instructors named in this circular.

*During the first two years of the University course, students have the subjects usually required in college courses — though with choice between four lines of work. (See University Catalogue.)

†The University year is divided into two terms, of equal length.

Source: Lawrence Daily Journal (Lawrence, Kansas), Sunday, July 14, 1889, p. 3.

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Seminary of Historical and Political Science.

Announcing the new Seminary

The Political Science Club has been succeeded by the Seminary of Historical and Political Science. This new society has been organized by Profs. J. H. Canfield and F. W. Blackmar. The membership of the society is limited to the department of History and Political Science, students having two or more studies in that department being active members and those having less than two studies being associate members.

This new association will embrace all of the best features of the Political Science Club, besides several new features. From his two years’ experience with the Political Science Club, Prof. Canfield is able to accept only those features that have proven to be practical. Under the new management the Seminary is expected to be even more interesting and valuable an adjunct to the department, in the future, than the Political Science Club has been in the past.

Source: University Kansan (Lawrence, Kansas), Friday, September 27, 1889, p. 2.

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First Annual Symposium of the Seminary of Historic and Political Science of K. S. U.

A short time ago invitations were sent out to the members of the Political Seminary, and last evening a goodly number of both active and corresponding members assembled for the first annual reception and banquet. The guests were received by Prof. J. H. Canfield, director, and Prof. Blackmar, vice-director of the Seminary; and at 8:45 the line of march was taken up for room 15, which served for a banquet hall as well as a lecture room.

Here an excellent repast was served by young lady students of the University, after which Director Canfield announced the Symposium proper. The director spoke at some length of the work accomplished in the past year, giving a list of the more important papers presented, and announced that for next year papers on subjects of interest were promised by Geo. R. Peck, of Topeka; Frank H. Betton, labor commissioner of Kansas; Judge Humphrey, of Junction City; Judge Emery, D. S. Alford, Rev. Ayers, Charlie Scott and Dr. Howland.

Prof. Canfield then introduced Vice-Director Blackmar, and asked him to compare the work done by the seminary here with the same class of work in eastern colleges. Prof. Blackmar gave a short account of the present mode of studying history and political economy, saying that it was of recent date. Comparisons with Yale, Johns Hopkins and the University of Michigan, show that the work here is as thorough as at any of those institutions. The study of the Science of History has risen into prominence, as has the study of the natural sciences, and furnishes as good mental training as do the languages or even mathematics.

At the close of Prof. Blackmar’s speech Prof. Canfield announced the real topic of the occasion, “The University in its Relation to the People,” and called on Gov. Robinson to tell of the early struggle for a university in Kansas. The governor then told in his own happy manner of the early endeavors to secure a university in Kansas, of the first faculty and how it was selected for policy’s sake, of the work that the regents had to do even in the first years of the University. His hope that the present director of the seminary would never leave the University was heartily applauded.

The time having arrived when three minute speeches were in order, Prof.

Canfield called on Mr. H. F. M. Bear to talk on the “Influence of the University in the Community.” Mr. Bear opened with a story, and when that was finished so were his three minutes.

“What a University Course in Worth to the Bar of the State” was responded to by Judge Humphrey; the judge said “That a thorough collegiate education is becoming more and more recognized as a necessity in the lawyer’s profession; that the most important function of a state school is to equip men for good, honest lawyers.”

“The University Man in Politics” was discussed by A. L. Burney, of the class of ’90, “The true duty of the University graduate in politics is to be a leader, following the teachings of the golden rule.”

Colonel O. E. Learnard, in responding to “the University man” in connection with the press, said: “It was not a good plan to mix a University training with newspaper work, but that men should graduate from the University into the newspaper profession.”

Prof. Canfield, introducing the next speaker, congratulated the University in having begun right in the matter of co-education.

Miss Hunnicut, a post-graduate student in Political Science, spoke on “Post-Graduate Work, the link between the University and practical life;” thought the course too short, should be two years instead of one — this was the only opportunity offered the student to do original work.

“University boys’ outing life” was assigned to C. E. Esterley. Mr. Esterley declared that the University boys were always successful after leaving school.

“What the University can and does do for women,” was discussed by Miss Reasoner — class of ’90. Miss Reasoner is a pleasing speaker and was listened to with close attention,

Prof. Blake in speaking on “the University and applied science,” said that everything in K.S.U. depended on the crops in Kansas, and as the crop prospect was good this year, so was the outlook for applied sciences hopeful in our University. The object in giving our young men instruction in the shops was not that they might be laborers, but directors of our great industrial enterprises in the West.”

This closed the program of a most successful meeting, and Prot. Canfield then declared the assembly adjourned for one year.

Those present were: Prof. J. H. Canfield, director; Prof. F. W. Blackmar, vice-director; Misses Lockwood, Dunn, Spencer, Reasoner and Hunnicutt; Judge Humphrey, Gov. Robinson, Dr. Howland, Rev. Mr. Ayres, B. W. Woodward, D. S. Alford, Col. O. E. Learnard, Prof. Blake, and Messrs. Chapman, Esterly, Liddeke, Slosson, Burney, Mushrush, Bear, Roberts, Morse, Hill, Wilmoth.

Source: Lawrence Daily Journal (Lawrence, Kansas), Thursday, June 5, 1890, p. 4.

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Blackmar on place of political economy 

ECONOMIC POLITICS. — One branch of political economy falls directly within the scope of history, and this is what may be termed economic politics, or that part of political economy which has to do with the action of the state concerning economical development. This has been called “Historico-Political Economy,” as treated by the historian. It deals less with economic life as a philosophy, and more with the practical affairs of economic legislation. As such it might assume the German name of “National Economy,” only that it would include more than is here intended. It is a separate study from the science of Political Economy as now constituted. However, in the earlier conditions of the science, and to a certain extent now among some French and German writers, political policies are confused with the science of political economy.

Within the scope of economic politics should be grouped those social and economic movements which have been directly connected with the political changes that have taken place in states. Some of the so-called political institutions have their direct cause of existence, in social or economic movements. The so-called new school, or, what is more explanatory, the “historical school” of political economists, in contradistinction to the old or “deductive” school, base their operations upon historical conditions rather than upon a priori arguments. Consequently, the association of political economy with the study of history has become common. It is true, on the one hand, that science of political economy that struggles with a priori principles, ideal men, ideal nations, and ideal conditions, was released from many of its defects when a careful search into historical conditions was made. On the other hand, there is a politico-economic history of nations which may be incorporated with the study of history proper, and still allow Political Economy to retain its own province undisturbed. It is this phase of political history which should come under the head of economic politics. The study of Political Economy as an independent science will be treated of under that heading.

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Such was the condition of the study of history in the American college up to a recent period, that the dull, dry conning of the facts of universal history with the chief idea of knowing the facts of the world’s history only to forget them, was the recognized process. President Adams tells us that during the first two centuries of the existence of Harvard College, the study of history consisted in spending one hour at eight o’clock on Saturday mornings in the hearing of compositions and the reciting of history, both ancient and modern. In 1839 a special chair for the study of history was endowed for the college, yet it was not until 1870 that there was any real change in the method pursued of conning history. At that time two men were employed, where before one man did all of the work. From this time there was rapid improvement. The condition in Yale and in Columbia was not much better than that in Harvard; in Yale the entire services of one man were not required until after 1868, to teach history, and it was not until 1877 that another man was put into the field.

In 1857 President White, of Cornell, instituted the study of history in the University of Michigan, and used the historic method employed in Germany with some modifications. This method was adopted in Cornell in 1870, and in Johns Hopkins in 1876, at the commencement of its career. With these beginnings a rapid progress has been made towards the treatment of history from a scientific standpoint. From this time the best institutions of America abandoned the old, dull process of memorizing and forgetting the facts of history without making good use of those facts. But this progress is not equal to the progress made in the old-world institutions in the organization and arrangement of courses and the number of separate fields of study. The methods used are somewhat the same.

Modern methods of historical teaching have for their chief points the systematic work of the student under the intelligent direction of the instructor. The process involves an investigation of materials, a search after the truth, a study of particular phases of historical truth, a comparison and classification of material, and an analysis of results. History is to be studied because it is interesting, and to be followed for the truth it will yield. In all of this the facts of history must not be ignored, nor the careful reading of standard authorities neglected. But the instruction works upon the principle that a person engaged in an interesting pursuit of the truth of history will retain by real knowledge of the subject the facts which if learned by rote without understanding would soon leave him.

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The MODERN SEMINARY furnishes a means of bringing together those most interested and most advanced, for the special study of subjects in history or in political and in social economy. This method, now almost universal in the foremost institutions, is of German origin, and constitutes the germ of the modern method. The seminary had its origin with the class taught by Leopold von Ranke, and from that time has been greatly improved in Germany, and extensively adopted in America. The seminary represents the historical laboratory, and each meeting should be a clearing-house of the actual work done. The object of the seminary is to develop individual thought and investigation, and to test the same by criticism and discussion. Another beneficial result will be the development in a practical way of the best methods of study. We have laboratory work in physics, chemistry, and in most of the natural sciences; if history is to be taught as a science, it must not ignore this great means of investigation. Its work may not always be original, for the word original should be used with much care in its application to any study. It must be sufficiently individual and independent that the student may verify truth by his own investigation, and learn to exercise his own judgment concerning the materials before him. The undergraduate courses in chemistry or physics seldom go beyond this in their laboratory work. The seminary is an association of individuals coöperating in the pursuit of historical truth, using scientific methods in study, research, and presentation. It should represent the highest and best work of any department or group of departments working on kindred subjects.

But whatever methods are pursued, it must be kept in mind that there are scientific processes involved, and scientific results must be expected. The chief benefits to be derived from the study of history, or of the different branches of history and sociology, are similar to those of all other sciences.

*  *  *  *  *  *  *  *  *  *  *  *  *

Professor R.T. Ely wrote an Introduction to Political Economy which was more or less sociological in its nature, and which assumed that Political Economy was a branch of Sociology. Subsequently a controversy arose as to the relative position of Economics and Sociology, which has been finally settled by Sociology taking and maintaining an independent position in the category of social sciences. While nearly everything relating to society has been called, at different times, Sociology, there is to-day a well-established body of knowledge, well-defined principles, and a distinct boundary of the science of Sociology.

A word must be said about the treatment of what is known as “social science” in a peculiar way, as if the only province of sociology was to care for broken-down and imperfect society; and that sociology has to deal only with social problems, and not with the rational development of human society. It must be acknowledged that the value of the study of charities and corrections cannot be overestimated, and that as representative of the position of a certain phase of social disorganization, the study of these is invaluable. These studies represent the outcrop pings of society, and just as a ledge in the mountains will show by its nature the condition of the original bed, so these parts of disorganized society will show the nature of the true structure. So, also, as it treats chiefly in its scientific methods of the reorganization of society, there is an opportunity offered for the application of the best results of the study of sociology.

*  *  *  *  *  *  *  *  *  *  *  *  *

THE STUDY OF ECONOMICS.

INSTRUCTION in economics has been for many years a part of the regular course of nearly every college and university in the land, and has recently been making rapid advancement in the secondary schools. There has been rather more controversy respecting its scope than of the methods employed in study and instruction. Some have contended that as Economics is an abstract science its scope is narrow, comprising only the body of principles and laws that have been drawn from concrete experience. Others have broadened the subject to include much that rightfully belongs to sociology and political science. Others have adopted the historical method to such an extent as to exclude all scientific nature of the subject, reducing it to a mere relation of facts concerning the industrial affairs of the nation. As usual, extremists may be of service in quickening thought, but they seldom hit upon the correct solution of problems that concern a large number of people. While it is proper and unavoidable to hold to the abstract or deductive political economy, it is also necessary to carry on concrete investigations by the inductive method. Nor must industrial history be neglected, for this makes a strong background for the science and enables the student to approach the subject from a new point of view. If a student will observe the following analysis and obtain a thorough knowledge of the subjects enumerated therein, he will have a fair knowledge of the science of Economics from every essential point of view. This analysis represents the essentials of economics; more would be superfluous and less would be insufficient. True, there are many subjects more or less directly related to economics, such as economic statistics, economic ethics, and economic jurisprudence, but they do not make up the body of the subject as a science.

CLASSIFICATION OF ECONOMICS.

  1. Classification according to the nature and logic of the science:
    1. Pure or abstract Political Economy.
      1. Laws, principles, and theories.
    2. Applied economics.
      1. Verification of laws and principles in concrete economic life.
      2. Practical investigation into economic phenomena, general or special, and classification and deduction of the same.
      3. Consideration of ideal standards and the means of approximating them.
    3. History of economic thought.
    4. Industrial history.
    5. Methodology of the science.
  2. Classification according to agencies:
    1. Private or non-political economics.
    2. Public or political economics.
      1. Public control of industries.
      2. Taxation and finance so far as related to economics.

While this outline carefully followed would give a student a fair knowledge of economics, it is not possible for him to have such knowledge with a narrower scope. Every point of the science is carefully fortified with concrete examples of economic life, and the progress of the industries acquaints one with the causes of changes or the process of economic evolution.

METHODS OF STUDY.

The chief difficulty met by the instructor in economics is to separate the principles and laws of economics from theoretical discussion. Theory of economics may have an important place in the class-room, but it is simply discouraging to find in an ordinary economic library that theory occupies so great a place in nearly all books on the subject. If economics is a science, what are its principles, what are its laws, and what the great body of classified knowledge that makes up the real elements of the science? In beginning the subject, then, it is necessary for the instructor to define carefully the boundary of the science. The student wants to know somewhat definitely the scope and purpose of the subject. If there is a science of economics, he wants to know definitely what is comprised in the body of classified knowledge it represents, and what are the laws and principles involved in its scientific processes.

After determining the scope of the science his next difficulty is in the classification of its subject-matter. This in itself is a difficult question; nor is the difficulty confined to economics, for it abounds in all social sciences and extends to considerable extent in the physical sciences. He will find the logical and comprehensive classification of either economic principles or economic phenomena a most difficult process. If the instructor or student can find the above conditions met in a well-arranged text-book the trouble is half over, for the principles of economic science are not difficult. Such a text-book should contain all of the essentials of the science, and should eliminate all controversial points and theories not yet well founded. For the discussion of theories, the elaboration of special topics, and the consideration of the views of economists, the student, like the instructor, must go to the library. For beginning classes this library should consist of a few carefully chosen books, each with a specific purpose. The library method in economics is largely the composition method, or possibly the compilation method. The student gets a re-statement of the principle of the text or lecture, either from a different point of view or in a more extended discourse. Great care should be taken to prevent a rambling course of reading, which is frequently carried on to the confusion of the student.

After the elements have been fairly well mastered the future work of the student should be on one or more of the great topics in economics, such as Money and Monetary Theories; Banking; Taxation and Finance; Industrial History; History and Theory of Economics: or the student may work on special themes, following them to the utmost limit, such as Capital, Wages, Interest, Labor Organization, Prices, etc.

In all this study the instructor and student must not forget to go to the concrete for verification, for illustration, and, so far as possible, for investigation. He must not forget that economic life and economic society are all about him, and the processes of economic practice, change and growth are to be observed at any time he will take the pains to inquire into their operations.

So long as the operations on the farm, the management of the household, the conduct of the factory, the operation of a bank, and the management of a railroad are ever present, the student from the beginning to the end of his course may find by actual study of the concrete the operation of the laws and processes of economics. Some difficulty will be met in teaching beginners to discriminate between the production of wealth in our economic sense and the technology of wealth-getting. In all concrete investigation this is to be carefully considered. For it is the general processes of production and their effects upon the market and upon society as a whole that interest the economist. Economics will not teach a boy how to carry on agriculture, or manufacturing; it will not teach him how to grow wealthy, except that as he studies finance, taxation, money, banking, production and distribution of wealth, he will have developed a tendency of thought, and an intelligence which would make him a better business man, a better financier, if he puts his knowledge to the proper use. The subjects treated in a general way will prepare a man theoretically if not technically for a business life. And without doubt, universities will eventually develop schools of commerce, trade, banking, business, and public service, which will give a professional and technical education in the great lines of industrial life.

The student must keep his eyes turned constantly upon the economic life around him if he would keep his knowledge from becoming visionary and non-vital. By a careful study of the actual operations of society in regard to questions of wealth and well-being, he will develop a practical knowledge of affairs that will be of service to himself personally and to the public at large. He will also find it convenient and profitable to consider the defects of economic life as compared with an ideal standard of justice, and set up a program of action. It is true that here he enters the field of economic ethics. If he then searches for a remedy for existing evils he enters economic politics. Yet economics as a science cannot be said to have worked out its purpose until it has become utilitarian in its attempt to better social conditions. It will not have done its duty until it inquires what ought to be. It should determine how the economic system of the world might bring a larger measure of justice to men, and plan such measures to be acted upon by the public to bring about a better condition of affairs. Every science must in the ultimate be of practical service to humanity if it has a reason to exist, and economics is especially adapted to render great service to humanity if properly studied and wisely taught.

*  *  *  *  *  *  *  *  *  *  *  *  *

SELECTED REFERENCES.

[History]

ADAMS, C. K. — On Methods of Teaching History.

ADAMS, C. K. — Recent Historical Work in Colleges and Universities of America.

ADAMS, H. B. — Special Methods of Historical Study.

ADAMS, H. B. — New Methods of Study in History.

ALLEN, W. F. — Grades and Topics in Historical Study.

BLACKMAR, F. W. — The Story of Human Progress.

BERNHEIM, ERNST. — Lehrbuch der Historischen Methode.

BURGESS, J. W. — The Methods of Historical Study in Columbia College.

CALDWELL, H. W. — American History Studies.

DIESTERWEG, G. — Instruction in History.

DROYSEN, JOH., GUS. — Grundriss der Historik.

DROYSEN, JOH., GUS. — Principles of History. (Tr. by ANDREWS.)

EMERTON, E. — The Historical Seminary in American Teaching.

FLINT, ROBERT. — The Philosophy of History.

FLING, CHARLES MORROW. — Studies in European History.

FREEMAN, E. A. — Methods of Historical Study.

GETSCHELL, MERLE S. — The Study of Mediæval History by the Library Method.

HALL, G. STANLEY. — Methods of Teaching and Studying History.

HART, ALBERT BUSHNELL. American History told by Contemporaries.

LORENZ, OTTOKER. — Geschichtswissenschaft.

MACE, WILLIAM H. — Method in History.

MAURENBRECHER, WILHELM. — Geschichte und Politik.

[Sociology]

BLUNTSCHLI, J. K. — The Modern State.

CROOKER, J. H. — Problems in American Society.

DE GREEF, GUILLAUME. — Introduction a la Sociologie.

FAIRBANKS, ARTHUR. — Introduction to the Study of Society.

GIDDINGS, F. H. — Principles of Sociology; Sociology and Political Economy.

COMTE, AUGUST. — The Positive Philosophy.

KELLY, EDMOND. — Government, or Human Evolution.

LOTZE, HERMANN. — Microcosmus.

SEELYE, JULIUS H. — Citizenship.

SMALL, ALBION W. — Introduction to the Study of Society.

SMALL, ALBION W. — Methodology in Sociology.

SMITH, R. M. — Statistics and Sociology.

SPENCER, HERBERT. — Principles of Sociology.

SPENCER, HERBERT. — The Study of Sociology.

WARNER, AMOS G. — American Charities.

WARD, LESTER F. — Dynamic Sociology.

WARD, LESTER F. — Outlines of Sociology.

WILSON, WOODROW. — The State.

WRIGHT, CARROLL D. — Statistics in Colleges.

WRIGHT, CARROLL D. — Practical Sociology.

[Economics]

BLACKMAR, F. W. — Economics.

COSSA, LUIGI. — Introduction to the Study of Political Economy.

ELY, R. T. — Outlines of Economics.

ELY, R. T. — The Past and Present of Political Economy.

GIDDINGS, F. H. — The Sociological Character of Political Economy.

INGRAM, J. K. — The History of Political Economy.

SMITH, R. M. — Statistics and Economics.

Source: Frank W. Blackmar, The Study of History, Sociology, and Economics, pp. 7-8, 30-31, 56-58, 66-67, 83-89. Published in the series Twentieth Century Classics, No. 17 (January 1901). Topeka, Kansas: Crane & Company.

___________________________

New Staff, New Names
Rebranding

The New Professors.

The resignation of Prof. James H. Canfield, regretted by all, has led to the reorganization of the work in history and political and social science. The two departments formerly known as those of American History and Civics, and History and Sociology respectively, have been combined into the one department of History and Sociology. This department is in charge of Prof. Frank Wilson Blackmar, Ph.D. To assist in the instruction in this department, the Board has elected F. H. Hodder, Ph.D., to be Associate Professor, and E.D. Adams Ph.D., to be Assistant Professor. Dr. Hodder is taken from the faculty of Cornell University. He has for the last year been pursuing historical studies in the University of Freiburg, Germany. He comes to the University of Kansas with a fine reputation for scholarship and teaching ability. Dr. Adams is a young man, a graduate of the University of Michigan and a brother of Prof. Henry C. Adam’s. Michigan University’s professor of Political Economy and Finance. Dr. Adams comes to the University with many good words from the strong men of eastern institutions.

Source: The Lawrence Gazette (Lawrence, Kansas). Thursday, August 6, 1891, p. 2.

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New name: Department of History and Sociology (1891)

Since the publication of the last number of Seminary Notes, several important changes have taken place. First, Mr. E.D. Adams was elected Assistant in History and Sociology. Soon after this Professor Canfield resigned his professorship to go to Nebraska. Immediately after accepting his resignation, the Regents consolidated the two historical departments, under the title of History and Sociology, and elected Mr. F. H. Hodder Associate Professor. It necessarily follows that the editorial staff of Seminary Notes has two new men in the place of Professor Canfield. The present editors will carry out the original plan of the publication with such improvements as may be made from time to time.

We are glad to learn of the prosperity of the former director of the Seminary, Chancellor James A. Canfield. The number of students enrolled in the University of Nebraska is thirty per cent, greater than last year. A new Law course has been established in the university. Upon the whole the new Chancellor of Nebraska is doing just what his friends predicted — making a great success of his new work. The University of Nebraska is to be congratulated that it was able to secure such an efficient man as Chancellor Canfield.

[…]

The senior professor [Frank W. Blackmar] in the department of History and Sociology is highly gratified that the Regents of the University have again displayed their wisdom in electing two able men to positions in the department. They are young men of scholarly habits and marked ability. Professor Hodder, Associate in American History and Civics, was born at Aurora, Ill., November 6, 1860. He graduated at Michigan University in 1883, having studied history under Prof. C.K. Adams, and political economy under Prof. H.C. Adams. He was principal of the High School at Aurora. Afterwards he went to Cornell University, where he was instructor and later Assistant Professor in Political Economy from 1885 to 1890. During the last year he has been studying at the universities of Göttingen and Freiburg, under Von Hoist, Conrad and others. He is an able instructor.

Mr. E.D. Adams, Assistant in History and Sociology, was born at Decorah, Iowa, in 1865. He was a student in Iowa College, 1883 to 1885; student in the University of Michigan 1885 to 1887, taking the degree of A.B. in 1887, was principal of the High School at McGregor, Iowa, 1887 to 1888, and student of the University of Michigan for the degree of Doctor of Philosophy, 1888 to 1890. In 1890 he took the degree of Ph.D. Since 1890 he has been connected with the census work on street railways, and since December has held the position of special agent in charge of street railways. He is doing good work in Kansas University.

Source: Seminary Notes published by the Seminary of Historical and Political Science, Vol. I, No. 2 (October 1891), pp. 39-40.

Image Source: Kansas yearbook,The Jayhawker 1901, p. 18. Colorized by Economics in the Rear-view Mirror.
Cf. portrait of Herbert Baxter Adams posted earlier. His master’s look?

Categories
Exam Questions International Economics Johns Hopkins

Johns Hopkins. International Economics Exams. Balassa, 1968-69.

 

This post is able to match the examination questions to the corresponding reading list for one semester of Bela Balassa’s international trade theory course that he taught at Johns Hopkins in 1968-69. Alas, the archival box did not have the reading list for the second semester, but at least the exam questions for the second semester, also transcribed below, give us a good idea of the main course content during the spring of 1969.

I am also delighted to have found a picture of Bela Balassa to replace the one I had found on a webpage that, as it turns out, happens to be of an entirely different Balassa (see note at the bottom of the post for details). Professor M. Ali Khan of Johns Hopkins tipped me off about the previous picture (used in other posts) not being quite right. 

____________________________

Note: the reading list for the fall semester course was transcribed and posted earlier.

EXAMINATION
INTERNATIONAL ECONOMICS 18.641
Thursday, January 16, 1969

Dr. Balassa

  1. Answer two questions (80 minutes)
    1. Discuss the meaning of the expressions “labor” and “capital” in the Heckscher-Ohlin framework and indicate the implications that the recent interpretations of these concepts have for the theory of international trade.
    2. Analyze the relationship between country size and the commodity composition of exports and imports.
    3. Discuss the applicability of alternative theories of specialization to trade among industrial countries.
  2. Answer two questions (80 minutes)
    1. Examine the usefulness of a general equilibrium approach to trade theory.
    2. Consider the implications of introducing intermediate goods in trade models.
    3. Show the applicability of the theory of duopoly and bilateral monopoly to the theory of tariffs.
  3. Answer one question (40 minutes)
    1. State briefly the Stolper-Samuelson and the Rybczynski theorems and indicate the relationship between the two.
    2. What welfare consequences can be derived from the following results if subscript 2 refers to the after-trade and subscript 1 to the before-trade situation:

ΣP2Q2 < ΣP2Q1

ΣP1Q2 > ΣP1Q1

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Note: the reading list for the spring semester course was not included in the collection of course outlines for the department of political economy in the Johns Hopkins University archives.

Final Examination
International Trade Theory 18.642
May 21, 1969

Professor Balassa

Give approximately equal time to all questions.

  1. Answer two questions.
    1. It has been customary to consider separately internal and external balance and to examine the effects of the use of various policy instruments on each. How can this be reconciled with Johnson’s proposition that “the balance-of-payments is the difference between aggregate receipts and payments in the domestic economy:”
    2. Reformulate the exchange stability problem if the devaluation is regarded as a transfer.
    3. Indicate the effects of a devaluation on the non-merchandise items of the balance of payments.
  2. Answer two questions.
    1. Examine the welfare implications of alternative means for attaining balance-of-payments equilibrium, including devaluation, restrictions on trade, restrictions on capital movement, and domestic deflation.
    2. Milton Friedman has recently argued that the introduction of the two-tier gold market has placed the world on a dollar standard and thus the United States no longer has a balance-of-payments problem. Similar conclusions have been reached by Depres-Kindleberger-Salant on the grounds that the U.S. plays the role of the world banker. Discuss.
    3. Discuss the implications of fixed and flexible exchange rates for national monetary and fiscal policies under the assumption of perfect capital mobility.

Source: Johns Hopkins University. Eisenhower Library, Ferdinand Hamburger, Jr. Archives. Department of Political Economy Series 6. Box 3; Folder: “Graduate Exams, 1933-1965”.

Image Source: Portrait of Bela Balassa in the Johns Hopkins University Yearbook, Hullabaloo 1976.

 

Categories
Bibliography Johns Hopkins M.I.T. Public Finance

M.I.T. History of Public Finance Bibliography. Dewey, 1936

As a graduate student at M.I.T. nearly fifty years ago, I spent a good part of my time when on campus at one of the many study desks along the windows at Dewey Library. At that time I had no idea who Davis Rich Dewey (after whom the library had been named) was. I presume this was true for most of my classmates too, M.I.T. not being known for  the study of the history of economics, though Paul Samuelson’s continuous interest in casting old theories in mathematical form was by no means chopped liver. 

As is noted in the short biography below, Dewey’s long career neatly overlapped with the first half-century of economics as a distinct academic discipline in North American universities. Thus it is fitting that Economics in the Rear-View Mirror gather and preserve artifacts left by Dewey in the course of his research and teaching.

Dewey’s magnum opus Financial History of the United States, first published in 1903, went through twelve editions (seven revisions) by 1934He dedicated the book to the Seminary in History, Politics, and Economics at Johns Hopkins University which he attended from 1883 to 1886. That dedication immediately follows the brief biography. This in turn is followed by a fully-linked fourteen item bibliography of general works on the history of U.S. public finance suggested “for students, teachers, and readers.”. Further suggestions by Dewey will be added sometime sooner or later, so stay tuned.

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Davis Rich Dewey, 1858-1942

Davis Rich Dewey was Professor of Economics at M.I.T. and one of several people who helped shape the profession of economics as it is practiced today. Best known for his writings on United states economic history, his professional career spans fifty years (1886-1940), the formative period of the modern economics profession.

In 1883 Davis R. Dewey entered the graduate department of economics at Johns Hopkins University, secured a fellowship, and spent summers working as a correspondent for Bradstreet’s Financial Review. He graduated from Johns Hopkins with the doctorate in 1886 having studied history, economics and political economy. His Ph.D. thesis, entitled “A History of American Economic Literature…” was a survey of the practice of the early U.S. economics profession.

Upon his graduation, Dewey received an appointment as instructor in history and political science at the Massachusetts Institute of Technology. From the first he was integrally involved in research, publishing his first articles, “Municipal Revenue from Street Railways” [AEA Publications, Vol. II, No. 6 (1888), pp. 551-562] and “A Syllabus on Political History since 1815…” in 1889.

At M.I.T. Dewey served as an Instructor (1886-1888), then Assistant Professor of Economics and Statistics (1888-1889), Associate Professor (1889-1892) and finally Professor and Department Chairman (1893-1933). He taught a course in engineering administration from 1913- 1931, when a separate department of engineering administration was created, largely due to his efforts. He served as the Chairman of the M.I.T. Faculty from 1911-1913.

Dewey was influential in the internal affairs of two major professional organizations, the American Economic Association and the American Statistical Association. While still a graduate student, he had participated in the founding meeting of the American Economic Association and in 1909 he became its president. When that Association’s journal The American Economic Review was started in 1911, he served as its first editor, a post he held until 1940. The medal on the Dewey Library homepage was awarded to Davis R. Dewey upon the occasion of his retirement as editor of American Economic Review in 1940. Also in his first year of service at M.I.T., he became a member and was elected secretary of the American Statistical Association, an office he held until 1906. As secretary, and as a member of the Publications Committee, Dewey helped to edit the publications of that organization as well.

Davis R. Dewey was interested in the quality of education, as demonstrated by the following quotation,

“The Student will too often leave with…no systematic knowledge of the economic world, nor any well-defined theory of its workings. There must therefore be a far greater insistence upon…methods which will improve the missing experience.”

Davis R. Dewey was an associate of M.I.T. President Francis Amasa Walker whose Discussions in Economics and Statistics [Volume I: Finance and Taxation, Money and Bimetallism, Economic Theory. Volume II Statistics, National Growth, Social Economics] he edited for publication in 1899, shortly after Walker’s death. He was also associated with the editor Albert Bushnell Hart. Davis R. Dewey wrote his acclaimed Financial History of the United States for Hart’s American Citizen Series in 1903, and a volume entitled National Problems for Hart’s American Nation Series in 1907. In 1904 Financial History of the United States won the John Marshall Prize offered by Johns Hopkins. Dewey was a contributor to Palgrave’s Dictionary of Political Economy, the New International Encyclopedia Americana, Encyclopedia Britannica, American Year Book and the Commonwealth History of Massachusetts.

A representative of the modern field of economics, Davis R. Dewey was indifferent to theorizing which had little to do with empirical fact. He was above all a practitioner, insisting that applied knowledge we the true realm of the academic economist. Davis R. Dewey also maintained a lively interest in the politics of academe and followed several academic freedom cases of his day.

He died on December 13, 1942. The Dewey Library was named in his memory.

Written by Keith Morgan, Dewey Library Economics Bibliographer, 1994

Source: Webpage “Davis Rich Dewey, 1858-1942,” MIT Libraries, Dewey Library for Social Sciences and Management. Links added by Economics in the Rear-View Mirror.

_____________________________

Financial History of the United States (12th edition).
New York: Longmans, Green and Co., 1936.
by
Davis Rich Dewey, Ph.D., LL.D.,
Emeritus Professor of Economics and Statistics
Massachusetts Institute of Technology

To the Seminary
of the
Department of History, Politics, and Economics
of Johns Hopkins University,

Of which the author was a member from 1883 to 1886. Under the guidance of Adams, Ely, and Jameson, we read and learned. The first has gone, leaving affectionate memories and organized activities of permanent usefulness; the others are still doing their work in a spirit of broad-minded sympathy and fine scholarship.

_____________________________

Suggestions for Students, Teachers, and Readers

[Following three pages dedicated to general works on U.S. political history and biography, Dewey offers almost seventeen full pages dedicated to the subject of public finance. In this post we begin with the transcription of the most general works in public finance Dewey recommends. The curator of Economics in the Rear-View Mirror has been able to find links to the fourteen annotated items in Dewey’s list.]

II. Financial Histories

There are but few histories devoted exclusively to public finance; only one, indeed, that by Bolles, covers the general field over an extended period. The reader must therefore rely upon works on taxation, the tariff, coinage, and banking, and for special topics and episodes will often find the most satisfactory treatment in the political histories and biographies already referred to. The following volumes represent those which are most general in their treatment; of these the works of Bolles and Noyes are especially to be recommended; the narrative by Bolles stops with 1885, while the smaller work by Noyes is confined to the period 1865-1907. There is a great need of detailed works on the expenditures of the government and the various phases of treasury administration.

Adams, Ephraim D. The Control of the Purse in the United States Government. (Reprinted from the Kansas University Quarterly, April, 1894.) — An academic study of the debates in Congress on the interpretation of constitutional provisions relating to treasury management, loans, taxation, and money bills. Careful references are given.

Bolles, Albert Sidney. American Finance, with Chapters on Money and Banking. (N. Y., 1901.) — Especially valuable on expenditures; treats also of State finance. A discussion of present conditions rather than historical.

Bolles, Albert Sidney. The Financial History of the United States. (2d ed. N. Y., 1884-1886. 3 vols.) — Vol. I includes the period 1774-1789; II, 1789-1860; III, 1861-1885. The only single work which covers an extensive period; it represents research, and is closely restricted to questions of finance; no attempt is made to sketch in the political and social background, and the reader may be confused without preliminary reading. The author leans to protection, and takes the banker’s point of view in questions of currency. The work is especially valuable for chapters on accounting and expenditures. Referred to as Bolles.

1st edition (1879), Vol. I (Frank Taussig’s copy!)
1st edition (1883), Vol. II
1st edition (1886), Vol. III
2nd edition (1884), Vol. I
2nd edition (1885), Vol. II
2nd edition (1885), Vol. III
3rd edition (1892), Vol. I

Bourne, Edward Gaylord. The History of the Surplus Revenue of 1837. (N. Y., etc., 1885.) — A brief, scholarly monograph with abundant references and bibliography. In addition to the historical account, it summarizes the earlier proposals of distribution of surplus funds in the treasury.

Bronson, Henry. Historical Account of Connecticut Currency, Continental Money, and the Finances of the Revolution. (In New Haven Colony Hist. Soc. Papers, Vol. I. New Haven, 1865.) — This is more than a local study; the author is drawn into a general review of the financial measures of the Revolutionary War. The essay is scholarly and the style vigorous.

Bullock, Charles Jesse. Finances of the United States, 1775-1789, with Especial Reference to the Budget. (Madison, 1895. Univ. of Wisconsin. Bulletin, Economics, etc., Vol. I, No. 2.)  — The best monograph on the finances of the Revolutionary period, with bibliographies at the beginning of each chapter. Indispensable to the advanced student.

Kearny, John Watts. Sketch of American Finances, 1789-1835. (N. Y., 1887.) — A brief study of 150 pages, clear and helpful in questions concerning the treatment of the debt. Little attention is given to taxation.

Noyes, Alexander Dana. Thirty Years of American Finance, 1865-1896. (N. Y., etc., 1898.) — Treats the earlier period very briefly, but is of special value for 1878-1895. Relation of public finance to the money market is given prominence. This has been replaced by Forty Years of American Finance (1909), bringing the history down to 1907. The references to the earlier edition have been allowed to stand.

Schuckers, Jacob William. Brief Account of the Finances and Paper Money of the Revolutionary War. (Philadelphia, 1874.) — The style is somewhat rhetorical, and, while the writer has on the whole chosen sound authorities, the essay does not indicate a very wide research. Is an interesting account within a moderate space.

Scott, William A. The Repudiation of State Debts. (N. Y. etc., 1893.) — Chapters 2-6 are historical, describing various acts of repudiation in twelve States. Of value as explaining some of the remote influences affecting federal credit, 1825-1850.

Spaulding, Elbridge Gerry. History of the Legal Tender Paper Money issued during the Great Rebellion. (Buffalo, 1869.) — The title is hardly accurate; the volume is largely a collection of documents, speeches, etc., relating to the legal tender acts.

Sumner, William Graham. The Financier and Finances of the American Revolution. (N. Y., 1891. 2 vols.) — Contains a mine of valuable material, but is not clearly arranged.

Vol. 1 (1892)
Vol. 2 (1892)

Sumner, William Graham. A History of American Currency. (N. Y., 1874.) — A series of topical notes designed for reference rather than consecutive reading.

Wells, David Ames. Practical Economics. (N. Y., etc., 1885.) — Treats of the silver question, tariff revision, and, most valuable of all, experience of the United States in taxing distilled spirits, subsequent to the Civil War.

 

Source: Davis Rich Dewey, Financial History of the United States (Twelfth edition). New York: Longmans, Green and Co., 1936, pp. xi-xiii.

Image Source: Davis Rich Dewey portrait at the MIT Museum website. Retouched and colorized by Economics in the Rear-View Mirror.

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Exam Questions Johns Hopkins Suggested Reading Syllabus Undergraduate

John Hopkins. Economic Fluctuations and Fiscal Policy. Course outline, reading list, exams. Domar, 1956

Evsey Domar turned 42 years old towards the end of the Spring term of 1955-56 when he taught his intermediate fiscal policy course to Johns Hopkins’ undergraduates. From his papers at Duke’s Economists’ Papers Archive we can bring together the tightly focussed reading list, two midterm exams, and the final exam for Political Economy 4. 

One notes that the actual dates of the mid-term exams were lagged one week relative to the announced dates in the syllabus. Happens to the best of us. I wonder if students still (ever?) read the syllabus back in the middle of the 20th century. 

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Course Announcement

Political Economy
Specialized intermediate work

Economic Fluctuations and Fiscal Policy 4. Professor Domar. Three hours weekly, second term.

The nature and causes of economic fluctuations. The economic role of government. Principal policy measures designed to achieve economic stability.

Prerequisite: Political Economy 3, or its equivalent.

Source: Johns Hopkins University. Undergraduate Programs, Announcements of Courses 1955-1956 in Circular 1955-1956. New Series 1955, Number 8, p. 102.

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Course Outline and Readings

THE JOHNS HOPKINS UNIVERSITY
ECONOMIC FLUCTUATIONS
AND FISCAL POLICY

(Political Economy 4)

E. D. Domar
Spring Term 1955-56

Course Schedule

SOURCES:

On College Reserve:

Colm, Gerhard, Essays in Public Finance and Fiscal Policy, Oxford University Press, New York 1955.

Due, John F., Government Finance—an Economic Analysis, Richard D. Irwin, Inc., Homewood, Ill., 1954.

Gordon, Robert A., Business Fluctuations, Harper & Brothers, New York, 1952.

Lindholm, Richard W., J. J. Balles, J. M. Hunter, Principles of Money and Banking Related to National Income and Fiscal Policy,W. W. Norton & Co., New York, 1954.

Public Finance and Full Employment, published by the Board of Governors of the Federal Reserve System, Washington, 1945.

Ritter, Lawrence S., Money and Economic Activity, Houghton Mifflin Co., Boston, 1952.

To Be Acquired by the Students:

Maxwell, James A., Fiscal Policy, Henry Holt & Co., New York, 1955.

Economic Report of the President, January 1956.

SCHEDULE:

Week of February 13th:

Maxwell, Ch. 1,
Ritter, pp. 20-36
Lindholm, pp. 17-31.

Week of February 20th:

Ritter, pp. 99-113,
Maxwell, Ch. 2.

Week of February 27th:

Ritter, pp. 120-130,
Lindholm, pp. 330-348

Week of March 5th:

Lindholm, pp. 370-408.

HOUR EXAMINATION: March 12th

Week of March 12th:

Maxwell, Ch. 3, 4 & 5.

Week of March 19th:

Maxwell, Ch. 6, 7, & 8,
Federal Reserve, pp. 1-21,
Colm, pp. 188-219.

Week of March 26th:

Maxwell, Ch. 9, 10, & 11,
Colm, pp. 258-286.

Week of April 2nd:

Maxwell, Ch. 12 & 13,
Federal Reserve, pp. 22-52,
Review – Due, pp. 29-61, 427-39.

Week of April 9th:

Maxwell, Ch. 14 & 15.

HOUR EXAMINATION: April 16th

Week of April 16th:

Federal Reserve, pp. 53-68, 101-130.

Week of April 23rd:

Review – Gordon, Ch. 13 & 14, and pp. 559-74.

Week of April 30th:

Gordon, Ch. 16, 17 & 18.

Week of May 7th:

Economic Report of the President

Week of May 14th:

Economic Report of the President

Week of 21st:

General Review of the Course

Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Papers of Evsey Domar. Box 15, Folder “MacroEconomics, Old Reading Lists”.

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First Hour Test

THE JOHNS HOPKINS UNIVERSITY
Economic Fluctuations and Fiscal Policy
(Political Economy 4)
Spring Term 1955-56

March 19, 1956

E.D. Domar

Answer all questions in any order you wish. Indicate carefully every step in your reasoning.

  1. (40%) Write a comprehensive essay on the subject of “Central Bank Monetary Policy” with special reference to our Federal Reserve System. Your essay should include the following points:
    1. The structure of the Federal Reserve System.
    2. The relation between commercial and Federal Reserve Banks.
    3. Objectives of Federal Reserve Policy.
    4. Powers given to the Federal Reserve System and methods used by it to achieve the objectives indicated in (3) under different economic conditions.
      1. General measures
      2. Selective measures
    5. Evaluate the performance of the Federal Reserve System since its inception.
      How successful has it been in achieving the objectives stated in (3)?
    6. Conclusion: the virtues and defects of Monetary Policy.
  2. (25%) Indicate clearly how DEMAND DEPOSITS, REQUIRED RESERVES, EXISTING RESERVES and EXCESS RESERVES of the commercial member banks taken as a whole are affected by the following transactions.
    Assume that all payments are made by check, that the member banks add all receipts to, and subtract all amounts paid out from, their reserves with the Federal Reserve Banks, and that the U.S. Treasury keeps all its funds with the Federal Reserve Banks:
  3. 25% Legal requirements are 15 per cent.
  4. When a transaction consists of several parts, indicate each part separately and then show the total effect.
    AFTER EACH TRANSACTION GIVE A BRIEF VERBAL ANALYSIS OF ITS ECONOMIC EFFECTS.

    1. The U.S. Treasury collects $15 million of corporate income taxes from the U.S. Steel Corporation and uses the proceeds to redeem a bond held by Mr. Smith who deposits the check with his bank.
    2. Same as (1), but the bond is held by the First National Bank.
    3. Jones borrows $1000 from the First National Bank. After a while he uses the proceeds to meet his payroll. His employees invest their earnings in Federal bonds.
    4. The U.S. Treasury sells bonds for $100 million to the public, and uses the proceeds to buy land for highway construction. The owners of the land deposit their checks at their banks. The Federal Reserve Banks buy $100 million worth of Federal bonds from (a) the public, and (b) commercial banks.
    5. The Federal Reserve Board changes reserve requirements from 20 to 18 per cent. (Assume that the amount of deposits outstanding equals to $100 billion.) Thereupon banks extend loans to their customers of $1 billion.
  5. (35%) Write a comprehensive essay on the subject of “The Identity and Divergence between Private and Social Cost.” Illustrate your discussion with examples. Why is this question important to the subject matter of our course and to economic policy in general. (No credit will be given for vague generalities.)

Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Papers of Evsey Domar, Box 16, Folder “Misc. Examinations”.

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Second Hour Exam

THE JOHNS HOPKINS UNIVERSITY
ECONOMIC FLUCTUATIONS
AND FISCAL POLICY

(Political Economy 4)
Spring Term 1955-56

Hour Examination
April 23, 1956

E.D. Domar

Answer all questions in any order you wish. Indicate carefully every step in your reasoning. No credit will be given for vague generalities.

  1. (15%) Define and describe the following terms or expressions and indicate their use in economic discussions:
    1. The Multiplier;
    2. Parity;
    3. Balanced budget theorem;
    4. Cash vs. conventional budget;
    5. Carryovers and carrybacks;
    6. Income elasticity of taxation;
    7. Regressive taxation;
    8. Payroll taxes;
    9. Grants-in-aid;
    10. Accelerated depreciation.
  1. (20%) Write a comprehensive essay on the subject of “Built-in Flexibility as an Instrument of Fiscal Policy.” Explain what is meant by this expression, how this instrument works, how effective it is likely to be, and what can be done to increase its effectiveness. Give a critical evaluation. Be as comprehensive and specific as you can.
  2. (20%) Write a comprehensive essay on the subject of “The Agricultural Problem in the United States since the Second World War.” Explain the origin and causes of the problem, government policies which have been adopted, and their effectiveness in dealing with the problem. Indicate and justify your own recommendations.
  3. (30%) Analyze with great care all important economic effects of agricultural price support program on the assumption of (1) that the funds for this purpose are raised by borrowing, and (2) that they are raised by taxation, in both cases under conditions of (a) unemployment, and (b) full employment. Indicate in all cases what kind of borrowing and what kind of taxation you have in mind. Give examples. When would you recommend one or the other method?
  4. (15%) “The main objective of the Federal policy should be not the balancing of the Federal budget, but of the national economic budget.” Comment.

Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Papers of Evsey Domar, Box 16, Folder “Misc. Examinations”.

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Final Exam

THE JOHNS HOPKINS UNIVERSITY
ECONOMIC FLUCTUATIONS
AND FISCAL POLICY

(Political Economy 4)

FINAL EXAMINATION – Three hours
June 1, 1956

E. D. Domar

Answer all questions. Be specific.

  1. (25%) Compare and contrast monetary and fiscal policies as methods of achieving economic stabilization (reasonably full employment without inflation) in a growing society. Include (but don’t limit yourself to) the following points:
    1. The theoretical foundation of each;
    2. Methods used by each;
    3. Effects on distribution of income and wealth;
    4. Social and political effects;
    5. Their effectiveness and limitations.

Do they overlap? Can you work out a synthesis of both?

  1. (10%) Describe how business fluctuations spread internationally and discuss critically the various measures for insuring international stability that have been suggested.
  2. (15%) Suppose that sizable gold deposits were discovered in this country (a) in 1933 and (b) in 1955. Trace the economic effects of the mining of this gold as completely as you can, both on the American economy and on that of other countries.
  3. (20%) Describe the origin, functions and performance of the Council of Economic Advisers from its beginning.
    State and evaluate the basic economic philosophy and the major recommendations of the 1956 Economic Report of the President.
  4. (15%) “One of the first objectives of this Administration should be at least a partial repayment of the Federal Debt. To do otherwise is to undermine the integrity on which this Administration is founded, and to adopt a course which inevitably loads to higher taxes, inflation, the destruction of our national wealth and economic insolvency.” Comment fully.
  5. (15%) Discuss SAVING as an economic problem.

Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Papers of Evsey Domar, Box 16, Folder “Misc. Examinations”.

Image source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Papers of Evsey Domar, Box 18, Folder “Photographs Domar”. Copy also available at the MIT Museum website. Colorized by Economics in the Rear-view Mirror.

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Berkeley Columbia Cornell Economists Harvard Illinois Johns Hopkins Wisconsin

USA. Joseph Schumpeter’s Roadshow. 1st Quarter, 1914

Joseph Schumpeter spent the 1913-14 academic year as Austria’s first exchange professor at Columbia University. But before heading home, he went on a whirlwind tour of American universities as documented in the following collection of news reports. Cornell, George Washington, Johns Hopkins, the Universities of Illinois, Wisconsin, and California, and apparently culminating with lectures in Taussig’s Ec 11 course at Harvard. All this between mid-January and mid-March 1914.

I have not seen the above portrait of Schumpeter before. He looks much less like Nosferatu’s twin and one could say has even leading-man material if only his ears were pinned back a notch.

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Dr. Schumpeter Near End of Course as Austrian Exchange Professor at Columbia University

Professor Joseph A. Schumpeter, who was sent to this country by the Austrian Government as an exchange professor, will soon complete his course of lectures on economic theory and on the problem of social classes, at Columbia University, where he has been since last October, and will visit a number of other leading universities in this country.

Professor Schumpeter was born in 1883, in Triesch in the Austrian Province of Moravia, and was educated at the “Theresianum” in Vienna. Then he entered the University of Vienna where he took his degree of Doctor in Law and Political Science in 1906, and gained locally some representation within the little circle of students of economic theory called the Austrian School. After spending some years in travel, he began lecturing on economies at the same university from which he was, at the age of 26, called to the chair of Political Economy in the University of Gernowitz. In 1911 he accepted a call to the University of Graz in Styria. When the Austrian Government, following the example given by the German Government, concluded an agreement with Columbia University for the exchange of professors, Schumpeter was selected to be the first visiting professor in this country.

Source: The Brooklyn Daily Eagle. January 14, 1914, p. 12.

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Predicts More War in Balkan Frontier

“Conditions as they exist in the Balkans now cannot last, I am sorry to say that the sad story of crime and suffering that we have been witnessing we shall have to see over again before long,” said Prof. Joseph Schumpeter in his lecture last night on “Austria’s Balkan Policy.”

“The Balkan situation awakens in us a multitude of passions,” said Dr. Schumpeter. “We see burning and murdered villages, and conditions growing worse and worse. Austria is very little known.

“A lot of false notions have arisen concerning Austria. It is a country of 50,000,000 inhabitants composed of a combination of different races and therefore gives statesmanship tasks of a peculiar kind. It is impossible to appeal to national patriotism in Austria for it is composed of several races apathetic to each other. The majority of the people are Slavs, but there are a great many Germans, Romanians, Italians and Servians. It is very difficult to adjust their claims for national supremacy.

“To keep the Turkish frontier is still Austria’s main care.

“What Austria wanted, and wants still, is to have a group of states on national lines so arranged that they will last for some time and not be under the influence of Russia. The Albanians held their own against Turkey for some time and finally Austria made a treaty with Italy that, no matter what happened to Turkey, they should combine to save the Albanian state.”

Source: The Ithaca Journal. January 17, 1915, p. 5.

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Admires Quick Wit Found in America

Professor Joseph Schumpeter of the University of Graz, Austria, expresses himself as delighted with Cornell University and everything he has seen here. Professor Schumpeter, who gave the lecture on “The Balkan Policies of Austria,” is now Exchange Professor at Columbia University. He has gained the reputation of being one of the most promising economists of Europe.

“You have a wonderful University here, splendidly equipped,” he declared. “The situation is ideal. I have been very much interested in my work at Columbia and feel that we Europeans can learn a lot from you. My work at Columbia has been mostly with the graduate students and I have not been able to get into as close touch with the undergraduates as I would have liked to. I have been especially struck by the quick-wittedness and energy of the American undergraduates. They also have an aptitude for intelligent discussion which is lacking in Europe. The whole spirit of fellowship is so splendid.

“The social life in America is remarkably pleasant. In other countries you take much longer to make friends. In my short stay here I have already made scores of excellent friends. American audiences are also so pleasant to talk to. I feel less intellectual sympathy while talking before a German audience than I do here. Unlike Europe all classes of society seem equally interested, the workingmen as much so as the richest families.”

Source: The Ithaca Journal, Jan 19, 1914, p. 9.

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Talk on the Balkans by Prof. Schumpeter
University of Gratz Educator Entertains Audience at National Museum

Prof. Joseph Schumpeter delivered a lecture on the present and prospective situation in the Balkans at the New National Museum last night, to which the general public was invited, the audience including students of the eastern question and a number of diplomats. Dr. Schumpeter is exchange professor between the University of Gratz, where he is professor of political science and economics, and Columbia University, New York, where he has just completed his series of lectures.

Last night’s address was delivered under the auspices of George Washington University, and Dr. Schumpeter was introduced by Rear Admiral Charles Herbert Stockton, U. S.N., retired, president of George Washington.

Dr. Schumpeter gave an historical account of the development of the Ottoman empire from the conquest of Constantinople in 1453 up to the present time. He declared that outside of Greece, where the situation has been practically clarified, the Balkan troubles have not been set at rest, and that further trouble may be expected in the Balkan countries at any time.

Real Root of Troubles.

He pointed out that the real root of many of the troubles of those countries has been differences because of race, the clash between Mohammedan and Christian, which he said is likely to continue to the end of the world. He offered, for example, the experiences of Great Britain, in charge of the largest number of Mohammedans in the world, in India.

Dr. Schumpeter devoted considerable attention to the part that Austria-Hungary is playing in the Balkan situation. Since 1908 the Balkan provinces of Bosnia and Herzegovina have been recognized as a part of Austria, and it is around the possession of these provinces that considerable interest lies. Austria-Hungary was permitted by the congress of Berlin in 1878 to occupy and administer these two Balkan provinces, but it was not until 1908 that they were formally annexed.

Source: Evening Star (Washington, D.C.), February 5, 1914, p. 9.

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Balkan War Policy of Austria Defended
Prof. Schumpeter Says Nation Must Control of Principalities Along the Danube.
Great Britain is Criticised.

John Bull was said to have in his charge the greatest Mohammedan power in the world by Prof. Joseph Schumpeter, professor of political science and economics at the University of Gratz, Austria, in an Interesting lecture last night at the National Museum.

“No less than 90,000,000 Mohammedans are under British rule, yet England has seen fit to attack the right of Austria to establish a mere legal pact by taking over Herzegovina and Boris and assuring to these two countries safety and security,” said Prof. Schumpeter.

Rear Admiral Stockton, president of Georgetown University, under the auspices of which institution the lecture was given, presided.

Prof. Schumpeter gave a comprehensive historical account of the development of the Ottoman empire since the conquest of Constantinople, in 1453, up to the present day.

In closing, Prof. Schumpeter asserted that in his opinion, outside of Greece, where he said the situation has been pretty well clarified, the Balkan troubles have not been definitely put at rest. He made it clear that he looked for further trouble.

Source: The Washington Herald, February 5, 1914, p. 3.

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Predicts Third Balkan War.
Prof. Schumpeter of Austria, Is Pessimistic in Lecture.

Under the auspices of George Washington University, Prof. Joseph Schumpeter, dean of political science and economics at the University of Gratz, Austria, and exchange professor between his university and Columbia, spoke Wednesday in the auditorium of the new National Museum on “The Balkan Situation from the Austrian Viewpoint.” Among those present were Konstantin von Masirevich, first secretary, and the Baron Freudenthal, attache of the Austrian embassy; Rear Admiral C. H. Stockton, president of George Washington, Prof. Richard Cobb, secretary of the university; Dean Charles E. Munroe, Dean Charles Noble Gregory and L. Cleveland McNemar, assistant professor of international law.

Prof. Schumpeter claimed that the Austrian annexation of Bosnia and Herzogovina in 1910 was warranted by circumstances. He said that Balkan peace is merely transitory; that another war is sure to come.

Source: The Washington Post, February 8, 1914, p. 2.

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Johns Hopkins University.

Two foreign educators lectured at the Johns Hopkins university last week. Dr. Joseph Schumpeter, of the University of Gratz, and first Austrian exchange professor at Columbia, delivered five lectures before the department of political economy….

Source: The Oregon Daily Journal. February 15, 1914, p. 48.

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Vienna Man at Madison.
Exchange Professor Studies Wisconsin Industrial Laws.

(Special to The Northwestern.) Madison, Wis., Feb. 10. — Dr. J. A. Schumpeter, exchange professor from Vienna to Columbia university, spent today here investigating the work of the state industrial commission. He will leave tonight for St. Paul, where he intends to make a similar investigation. Dr. Schumpeter is a recognized expert on labor legislation, and in addition to investigating the work of the commission held a conference with Prof. John R. Commons.

Source: The Oshkosh Northwestern, February 10, 1914, p. 9.

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Professor Schumpeter has very busy two days here.
Austrian makes four addresses and attends several affairs.

Four addresses were given by Prof. Josef Schumpeter during his stay here from last Saturday morning until Sunday night, when he left for the University of California via Chicago. All of his addresses were along the line of the social sciences in which he enjoys wide fame for his great ability.

Professor Schumpeter’s first talk was given Saturday noon to the University Club where he took lunch. There he gave a talk on smoke. His second, and most important address, was to the combined seminars of the social science departments. It was given in room 304 of Lincoln Hall to an audience which contained almost every faculty and student member of the two seminars. His discussion was upon the theory of economic development. The lecturer paid especial attention to the place of interest and economic crises in static and dynamic states. Although he is an Austrian. and from the University of Graz, his lecture was delivered in perfect English, and was of profound interest to those who were privileged to attend.

With some eighteen University people, Professor Schumpeter took dinner at the Beardsley Saturday evening. Here again he spoke, this time giving an address on “The Austrian Attitude to the Balkan Situation.” He was followed by Professors E. B. Greene, A. H. Lybyer, L. M. Larson and W. F. Dodd, each of whom spoke on some aspect of world politics.

A reception was given the Professor at the home of Dean Kinley on Sunday afternoon. Here he addressed those present on “The Aspects of Austrian Social and Political Life in University Government.” Sunday night, Professor Schumpeter took the train for Chicago.

Source: The Daily Illi (Urbana, Illinois). February 17, 1914. Page 4.

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Talks of Marx’ Economy

University of California, Feb. 25. — Dr. J. A. Schumpeter, eminent Austrian economist, addressed an audience at California hall yesterday on “The Economy of Karl Marx.” Among the points he made were that one could believe in Marx’ doctrines without being a Socialist; his theories of value and exploitation of the working class were receiving more and more general acceptance; he was a “flaming propagandist whose followers regarded him as little less than inspired.”

He addressed also during the day classes in economics on interest rates and classical and modern economic theories.

Source: Oakland Tribune. February 25, 1914, p. 4.

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Brings Austria’s Message to Both Columbia and Harvard

The first Austrian exchange professor at Columbia will deliver a series of lectures on economic theory at Harvard in March. His lectures will be in connection with some of the courses given by Professor Taussig on economic theory.

Professor Schumpeter was born in Triesch, Moravia, in 1883, and received his early education in Vienna, where he also attended the University. He was awarded the degree of doctor of law and political science in 1906 and after spending several years in travel, established himself as a docent at the University of Vienna in 1909. A few months later, he was appointed professor of political economy in the University of Czernowitz, and in 1911 he was appointed professor of political economy in the University of Graz.

Professor Schumpeter’s own system of economic theory is developed in two books, “Wesen und Hauptinhalt der Theoretischen Nationalökonomie” and “Theorie der Wirtschaftlichen Entwicklung.” In addition, he has published a number of important papers. He has also contributed a history of economic theory to Schönberg’s “Handbuch der Politischen Oekonomie,” which is to appear shortly, and has furthermore prepared a treatise on banking law for a manual of mercantile law to be published in the near future.

In recent years Professor Schumpeter’s interest has been largely in the field of sociology, but he has not yet published anything in this department. As an economist, Professor Schumpeter is a member of the Austrian school — the brilliant group of writers headed by Böhm-Bawerk and Wieser of the University of Vienna, who have rescued economic theory from the eclipse with which it was for a time threatened by the able but exaggerated criticisms of the leaders of the German historical school. Though agreeing with his Viennese colleagues in many of their theories, he has shown great independence and originality in his treatment of the phases of economics, such as the interest problem, to which he has given particular attention. Thus, in spite of his comparative youth, he has won a place in the very front rank of contemporary European economists. His fluent command of spoken English and his intimate knowledge of American economic literature make him a most attractive lecturer.

Source: Boston Evening Transcript. February 4, 1914.

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“The Theory of Crises”at 4.30
March 16, 1914

Professor Josef Schumpeter, an Austrian economist of the University of Vienna, will lecture upon “The Theory of Crises” before the Seminary of Economics in Upper Dane this afternoon at 4.30 o’clock. Professor Schumpeter has written two books upon Economic. Theory which are of high quality, and have attracted a great deal of attention.

Source: The Harvard Crimson. March 16, 1914.

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Noted Economist’s Last Lecture

All members of the University interested in economics are invited to hear Professor Josef Schumpeter, of the University of Vienna, lecture upon “Economic Theory” in Professor Taussig’s course, Economics 11, this afternoon at 2.30 o’clock. This will be the last of a series of lectures given by Professor Schumpeter, who is this year conducting courses at Columbia University. The lecture will take place in Emerson H.

Source: The Harvard Crimson. March 18, 1914.

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Prof. Schumpeter Sails.
Says That America Made a Deep Impression on Him.

Professor Joseph Schumpeter, the first Austrian exchange professor in America, who is returning to his home University of Graz, Austria, sailed on the Martha Washington yesterday. The professor has lectured on social problems, money systems, democracy and other branches of science, has been with Columbia University until the end of January, when he left for a tour through all of the leading universities of this country, the tour extending to San Francisco. Mr. Schumpeter said that he was sorry to leave America, which had made a deep impression upon him.

“The big American universities,” the professor stated, “are far better than the average Austrian and even European university. America has a bigger and better body of scientists at each university, and the student’s material is of a much higher type than that of European schools. The American student wants to learn. He has the earnest desire to go to the bottom of science. He wants to make headway in the world, whereas the Austrian student visits a university for reasons of tradition, social standing and title.”

Asked what he thought the greatest American achievement, the professor answered that the “one-man management” was most appealing to him. It was far better, he claimed to have one man run a business, a university, and even a political party, than to have the European system of sharing power and responsibilities.

Four pretty young sisters, all of whom are ardent suffragists, left on board the big Austrian liner for Italy, France and Germany. The fair travelers are Misses Catherine, Ella S., Grace and Margaret Switzer of Manhattan. Their purpose is to show their European sisters how superfluous man really is, for never during their trip will they tolerate or accept the services of any man nor will they speak to any man or stand for being addressed by a man.

Source: The Brooklyn Daily Eagle. March 22, 1914, p.74

Image Source: Boston Evening Transcript. February 4, 1914. Colorized by Economics in the Rear-view Mirror.

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Business Exam Questions Johns Hopkins

Johns Hopkins. Examination questions for undergraduate marketing. Roy J. Bullock, 1937-1938.

The mingling of business with economics in some economics departments went on well into the middle of the 20th century (the contrary movement of “economics departments” being added to business schools/colleges and schools of public policy is another, later story). Moving on through the undergraduate course offerings in the Johns Hopkins department of political economy 1937-1938, we encounter the course in marketing taught by Roy J. Bullock. The course description and semester examination questions have been dutifully transcribed and are found below.

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Life and Career of Roy Johnson Bullock

1903. Born October 5 in Crete, Nebraska.

1925. A.M. Doane College (Nebraska). Phi Beta Kappa.

1927. M.B.A. Harvard Business School.

1927-28. Associate Professor of Business Administration, University of Oregon.

1933. Ph.D. in Political Economy, Johns Hopkins.

1934-1940. Faculty member of the department of political economy.

1941. Director of Johns  Hopkins School of Business.

1942. Joined the Office of Price Administration in Washington, D.C.

1945-48. Served with the U.S. military government in Germany.

1948. Begins Congressional career as a member of the staff of the Joint Committee on Foreign Economic Cooperation.

1951. Served as economic expert for the House Foreign Affairs Committee, later promoted to senior staff consultant.

1957. Served on staff of the congressional delegation to the United States.

1970-1972. Staff administrator of the House of Representatives Committee on Foreign Affairs

1972. Retired from congressional service.

1980. Died February 14 at his winter home in Marco Island, Florida.

Source: Obituary for Roy Johnson Bullock in The Washington Post, February 18, 1980.

__________________________

Fun Poster:  The Johns Hopkins Department of Economics’ timeline 1875-2016. (Archived copy at the Wayback Machine).

__________________________

Course Description
Marketing
1937-1938

20 B. Marketing. Dr. Bullock. Three hours weekly, through the year. Th., F., S., 9.30. Gilman Hall 312.

A comprehensive study of the machinery encountered in present-day business that is utilized in the distribution of merchandise from the producer to the consumer, together with the policies governing its use. Attention is given to such subjects as retailing, wholesale trade, advertising, buying, cooperative marketing and the various types of functional middlemen, with particular regard to the place occupied by each in the general marketing structure. Detailed examination is made of the distribution of the more important commodities. A considerable amount of time is spent in the discussion of problems taken from business practice that pertain to the topics under consideration.

Source: The Johns Hopkins University Circular (1937).

__________________________

Final Examinations
Marketing
1937-1938

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 20 B

Dr. Bullock

January 31, 1938

I

Define or identify:

  1. Merchandising
  2. Economical Emulation
  3. Intensive distribution
  4. Trade-mark piracy
  5. % of selling price = % of cost
    100 – % of selling price
  6. Price-lines
  7. Stockturn
  8. Functional middleman
  9. Selling agent
  10. Hedging

II

National Hardware Stores, Inc.

In 1917, it was announced that the National Hardware Stores, Inc. had been organized under the law of the State of New York, to operate a chain of retail hardware stores. As a nucleus it planned to purchase selected unit stores in the eastern states and later to open new stores as well as to purchase other established stores throughout the country. The plan contemplated the operation of a perpetual inventory control of merchandise stocks in all the retail branches by means of an electrical tabulating machine in the central office; for each sale ticket a specially designed card was to be punched to show salesman’s number, code number of the merchandise, quantity, and selling price. Operating statements and balance sheets were to be prepared monthly for each store.

It was the policy of the company to deal in standard brands of merchandise, purchased centrally so far as practicable, but with permission to store managers to buy goods peculiar to their local requirements. Goods were to be sold at standard resale prices, without price cutting.

A sales promotion department was to be organized at the control office to furnish a regular service of direct advertising to select lists of customers of each store, to prepare newspaper and street car advertising and window displays, and to train store salesmen. As regards the owners of the stores, it was stated: “It is the policy of the corporation to buy men into its organization rather than to buy out their businesses.”

The corporation made a prolonged study of communities and stores within a 12-hour railroad radius of Now York City preliminary to the commencement of operations. Then several stores were purchased. In July, 1922, however, it was announced that receivers in bankruptcy had been appointed for the company. Its assets then were stated as $75,000 and its liabilities $100,000.

What were the inherent weaknesses in the company’s plan?

III

Waldemar Machine Company.

The chief products of the Waldemar Machine Company were automatic screw and chucking machines. The company also manufactured a line of shop equipment, including such items as steel benching, stock racks, and tool racks.

The company’s total annual sales were in excess of a million dollars; of that amount about 10% was represented by sales of shop equipment. In 1925, both the automatic machinery and the shop equipment were being sold by the same salesman. At that time it was proposed that the company should relieve the machinery salesmen of the responsibility for selling shop equipment and provide some other method of distribution for that line.

Waldemar machines were made in about 15 sizes and three types. They ranged in price from $5,000 each to $15,000 each. Firms producing large quantities of similar parts constituted the market for these machines. It was important that salesmen for the machines have engineering experience. They were expected to visit all large prospective customers several times a year but to devote, the major part of their time to firms actually in the market for machinery. The salesman obtained detailed information from such firms as to the particular jobs for which automatic machinery was required and submitted this information to the home office for production estimates and proposals. The salesman customarily negotiated with production officials and had to be able to advise them as to applications of the machines, small tools to be used with them, and other technical matters. The salesmen were paid salaries and expenses and, as an incentive, small commissions on sales in excess of specified amounts.

After a sale had been consummated and the machinery installed, the company provided a demonstrator to instruct the customer in use of the machinery. No separate charge was made to cover the cost of demonstration. The demonstration period varied from a few hours to several weeks.

The problems of selling shop equipment were totally dissimilar to those of selling automatic machines. Items of shop equipment were comparatively inexpensive and the potential market for them was much wider than that for the machines, although machinery users also were prospective customers for shop equipment. Even when the same firm bought both lines, however, different individuals usually were responsible for their purchase. The technically trained salesmen for the machines, moreover, tended to be disinterested in the equipment line.

In view of those facts the company in 1925 decided that thereafter it would not have its machinery salesmen sell the shop equipment. Its shop equipment sales, however, did not seem to be large enough to justify the employment of salesmen for that line alone. The company decided, therefore, to sell this line by means of manufacturers’ representatives specializing in a few lines of industrial equipment. Some of these representatives sold on consignment and some bought the goods outright; the company deemed it important to have local stocks. In general it was the company’s experience that sale on consignment gave the best results, since under that method of sale the company had a larger measure of control over its goods.

Criticize the decision of the company.

IV

Landon Company.

The merchandise manager of the Landon Company early in 1934 had the following operating statistics of the neckwear department presented to him by the controller’s office. For the use of the merchandise manager, the controller included with the company’s statistics the common and the goal figures of the National Retail Dry Goods Association for neckwear departments.

Item

1932

1933

1934

Store

NRDGA

Store

NRDGA

Store
Common Goal Common Goal

Mark-up, %

38.06 39.1 41.2 38.67 41.1 42.1 39.48
Mark-down, % 9.04 7.3 5.4 11.71 8.4 4.5

12.25

No. of stock-turns

8.8 7.5 10.1 7.6 8.8 11.3 6.4
Expense, % 37.45 39.8 33.8 44.21 39.9 37.5

Sales, % of previous year

85 86 97 75 100 113

59

What use could the merchandise manager make of this information?

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

THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
IN
POLITICAL ECONOMY 20 B
(Marketing)

1 p.m.
May 30, 1938

I.

Explain briefly the meaning or significance of:

  1. Process materials
  2. Push selling
  3. Pittsburgh Basing Point System
  4. Robinson-Patman Act
  5. 2%, 10 days, net 30, 60 extra
  6. Old Dearborn Distributing Co. v. Seagram-Distillers Corp.
  7. Activity standards for salesmen
  8. Hedging
  9. Period discount
  10. Centralized control

II.

Evaluate the recent legislation legalizing resale price maintenance in most of the United States from the point of view of the independent retailer, the chain store, and the manufacturer of a nationally advertised article.

III.

The following statement appeared in Sales Management September 1929, p. 425 in an article signed “A Chicago Sales Manager”:

“I may say that my company has been a leader in our industry for more than thirty years. Our goods have been nationally advertised for about half this time, and practically all of our distribution has been through wholesalers. In 1921 we experimented with direct selling to large retailers, but discontinued the practice the next year. We still sell [to] the retailer through the wholesaler, and, principally in the larger cities, this method has been satisfactory.

“During my employment by the company we have sold all of our wholesale accounts on the same price basis. We have tried to confine our goods to the best class of wholesalers, and our merchandising has suffered little from price-cutting. We have maintained our position in the industry, and have a profitable and slowly growing business.

“A representative of a large mass distributor called on our president about a week ago. For about two days he talked with the four of us collectively and individually. He proposed that we sell his chain store organization a volume of goods that represents about 12 per cent of our present output, at prices which average at least 9 per cent below our net prices to our wholesalers. There is assurance, but no guarantee, that this volume will be maintained or increased. The buyer also submitted some interesting figures to support his allegation that we would not lose any money on the additional volume.

“He justified the special discount in several ways. When we objected to it on the ground that we are making less than 3 per cent net on our output, he argued that the greater part of our overhead is already taken care of by our present volume, and that we could not justly charge this expense against the additional business. If this claim is correct, a large part of the special discount may be justified.”

Discuss.

IV.

What economic justification is there for a wholesale price differential such as was provided in the N.R.A. code for the Wholesale or Distributing Trade?

What questions of social policy are involved?

V.

What methods of sales promotion should the following companies undertake? Give consideration to the characteristics of the product and the buying habits and buying motives of consumers in reaching your conclusion.

Katches

In 1928 a Boston inventor perfected an improved device called “Katches” for attaching license plates to automobiles. Katches simplified the task of attaching license plates to automobiles, because the device was in one piece, and thus did away with the necessity for bolts and nuts and lock washers. Furthermore, Katches would not rust and could always be attached or removed by one turn of a screw driver. This new invention cost 3 cents a pair to manufacture. The inventor expected to sell them to the retail trade for 6 cents a pair, and suggested that the latter resell them for 10 cents a pair. Since most license plates were changed at the beginning of the year, he expected that the sales of this produce would be very seasonal.

Owl-Fiber Rug Company

The Owl-Fiber Rug Company manufactured rugs made of spun paper yarn, and wool and cotton yarn, for sale to department stores and wholesalers. These rugs were made in a number of attractive patterns, and gave very satisfactory service in actual use. They were mainly sold to small-home owners for inside all-year-round use. Rugs manufactured by this company competed not only with all-wool rugs and oiled-surface floor coverings such as Congoleum, which were more expensive than fiber rugs, but also with other wants of users, such as furniture and electrical appliances. The manufacturers of oiled-surface coverings had advertised their products very extensively, one company having spent more than $1,000,000 in a five-year period. The Owl-Fiber Rug Company, on the other hand, had done little advertising.

Claybon Company

The Claybon Company was one of four large manufacturers of cheesecloth. Cheesecloth was mainly used for polishing, dusting, and straining cloths, as well as for surgical work and for making curtains and nettings. There were 13 principal grades of cheesecloth, the retail prices of which varied, when sold as piece goods, from 7 cents a yard for the coarser grades to 20 cents a yard for the finer grades. In addition to what was sold as piece goods a considerable amount of cheesecloth was sold in packages. Packaged cheesecloth was sold in five standard grades in 5 and 10 yard lengths. Companies charged 1 cent a yard more for packaged cheesecloth than for roll cheesecloth to cover the extra charges of packaging.

Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.

Image Source: Johns Hopkins University graphic and pictorial collection. Portrait of Roy Johnson Bullock, 1940. Colorized by Economics in the Rear-view Mirror.

Categories
Exam Questions Finance Johns Hopkins Statistics Undergraduate

Johns Hopkins. Exam questions for mathematics of finance and applied statistics. Evans, 1937-1938

 

For an earlier post Economics in the Rear-view Mirror transcribed the examination questions for George Heberton Evans’ course on corporation finance offered to Johns Hopkins undergraduates in 1937-1938. That course and the following course on the mathematics of finance and applied statistics were not listed as prerequisites for each other. The essential difference appears to be that the following course appears to have covered themes of interest to actuaries (no pun intended). 

For some background information about Evans, see: Ph.D. from Johns Hopkins University, 1925

__________________________

Course Description
Mathematics of Finance and Applied Statistics
1937-1938

24 B. Mathematics of Finance and Applied Statistics. Associate Professor Evans. Three hours weekly through the year. F., S., 11.30. Gilman Hall 314.

The first half-year of the course will include the study of annuities, sinking funds, amortization tables, and valuation of bonds.

During the second half-year mathematics and statistical method will be applied to business and economic problems.

Prerequisites: Mathematics 1 C or 2 C and Political Economy 2 C.

Source: The Johns Hopkins University Circular (1937).

__________________________

Semester Examinations for
Mathematics of Finance and Applied Statistics

1937-1938

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 24 B

Dr. Evans

February 4, 1938
1 p.m.

  1. A bond will be redeemed in 10 years for $1,000 cash. Semi-annually the owner of the bond receives $30 interest. Determine the present value of the bond if the current rate on similar investments is 5%.
  2. Find the bank discount on a $10,000 note for 6 months when the bank rate is 7%. What is the effective rate of interest charged!
  3. The XYZ Corporation has outstanding a bond issue of $10,000. It has agreed to pay to a trustee an amount at the end of each year, which invested at 4% will provide a fund to retire these bonds at the end of 10 years. Determine the amount that must be invested each year.
  4. Williams owes $7,500 due in 8 years, and $4,500 due in 5 years, each bearing 4% interest. What two equal payments will liquidate this debt, if the first is made in 1 year, and the second in 3 years? The current rate is 5%.
  5. Repairs costing $350 must be made each 2 years to a building which will last 20 years. Determine the amount that could be spent to eliminate these repairs without additional cost to the owner over the period. Interest at 4%.
  6. An estate left 110 years ago was unclaimed until recently. An heir has proved his claim and is to receive the estate of $50,000 with interest at 3% annually for 110 years. Determine the value of the estate.
  7. X has an obligation of $25,000 which he desires to liquidate by investing $3,500 now and the same sum annually thereafter, at 4½% compounded semi-annually. Determine when the fund should theoretically be large enough to liquidate the debt.
  8. Find the ordinary interest of $450 for 60 days at 8%.
  9. An insurance company agrees to pay you or your estate $2,000 a year for 15 years if you will pay them $23,875.87 cash. The salesman argues that you will get your money back and make a profit of $6,124.13. Determine the rate of interest that you will actually receive.
  10. In order to attract customers the Pacific Savings Bank advertises that it pays 3% compounded monthly. If you deposit $25 a month for 6 years what is the amount you will have accumulated at the end of 6 years?
  11. In how many years will money invested at compound interest double itself at 3%?
  12. In 10 years the bond issue of the Chemico Company will mature. An amount of $30,000 will be needed to retire this issue. The treasurer estimates that $2,300 a year will be available for investment. What rate of interest must be earned to accumulate a fund of $30,000 in 10 years? In answering, make use of the binomial theorem.

*  *  *  *  *  *  *  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
POLITICAL ECONOMY 24 B

June 4, 1938

  1. A bequest of $150,000 was left to A, aged 36. With what life annuity will this provide him?
  2. A, aged 40, gave $75,000 to Blank University with the understanding that after 15 years he receive an equivalent life annuity. What annual amount would he receive?
  3. A party of five men at a soda fountain match coins, agreeing that the odd man is to pay for the drinks: (a) What is the probability that there will be one odd man at the first attempt? (b) What is the probability that there will be no odd man at the first attempt, but that there will be one on the second? (c) What is the probability that there be an odd man at least once in two attempts?
  4. What is the earliest age at which the “odds are against” a man living:
    (a) one year?
    (b) five years?
  5. Using the theoretical method, calculate the purchase price of the following $1000 bond which was bought on May 4, 1928 to yield 4.40%: New England Tel. & Tel. 5’s, due Oct. 1, 1932, with coupon dates of Apr. 1 and Oct. 1.
  6. Dwight Minor paid, at the end of each month, dues of $23.25 on his 31 shares of $100 par value stock in the Garfield Loan and Savings Association. Immediately after his 99th payment the stock matured. What approximate rate, converted monthly, did his association allow him?
  7. B, aged 36, took out a 20-year endowment insurance policy for $50,000 to be paid for in 20 payments. On what net annual premium did the insurance company base its charge?

Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.

Image Source: Johns Hopkins University, Sheridan Libraries, Graphic and Pictorial Collection. George Heberton Evans at approximately 40 years old. The portrait was colorized by Economics in the Rear-view Mirror.

Categories
Economic History Exam Questions Johns Hopkins Undergraduate

Johns Hopkins. Exam questions for undergraduate economic history. Broadus Mitchell, 1937-1938

 

Associate Professor Broadus Mitchell taught the standard undergraduate survey course in economic history at Johns Hopkins in 1937-1938. He resigned from Johns Hopkins the following year over the matter of admitting an African American student to the department of political economy (the admission was fought by the Johns Hopkins University administration).

Much more about Mitchell can be found in the 90 page transcript of an oral history interview with him from August 14 and 15, 1977 that can be found in the Southern Oral History Program Collection at the website Documenting the American South at the University of North Carolina at Chapel Hill.

It is the regret of my life that at Johns Hopkins University I did not pursue to the bitter end the defense of the proposal to admit a qualified Negro graduate student in the Department of Political Economy. He was Edward S. Lewis, who was the Secretary of the Urban League, of which I had been the first President in Baltimore. He was a graduate, I believe, of the University of Chicago and maybe of the Columbia University School of Social Work; I’ve forgotten. At any rate he was in every way a highly qualified, mature applicant for admission to graduate work. He was a leading black social worker in Maryland, where there’s a large negro population with a much higher incidence of poverty, disease, and so on than the whites. And he had been doing graduate work in economics at the University of Pennsylvania, commuting weekends. He could only get weekends, because he was holding his position as Secretary of the Urban League in Baltimore. And this was unsatisfactory and costly and interrupted and so on, so why shouldn’t he come to Johns Hopkins where we had every facility? … pp. 76-77.

__________________________

Course Description
Economic History
1937-1938

12 B. Economic History. Associate Professor Mitchell. Three hours weekly through the year. M., Tu., W., 9.30. Gilman Hall 314.

In the first part of this course a study is made of English economic history, the purpose being to show not only the industrial development of the English people as such but the way in which the economic motive has influence the whole of social life. Particular attention is given to the characteristic forms of economic organization—the manorial system, the guild system, the entrance of capitalism and the causes and consequences of the Industrial Revolution. Special reference is made to those features of English economic history which have influenced industrial life in the United States. The second part of the course is a survey of the economic history of our own country. Here the same effort is made, as in the case of England, to show the bearing of economic considerations on political evolution, especially in the direction of the growing importance of the Federal Government.

__________________________

Semester Examinations
Economic History
1937-1938

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 12 B

Dr. Mitchell

February 1, 1938
9 a.m.

  1. Contrast life in an English manorial village of the 13th century with agricultural life in the United States today.
  2. What were the main causes and consequences of the enclosures movement?
  3. Contrast the conduct of industry and commerce in the towns of England in the Middle Ages with industrial and commercial life in the United States today.
  4. Trace the transition from the guild system through the domestic system to capitalism.
  5. Describe the Industrial Revolution.
  6. Give a brief account of two of the following movements: labor unionism, the factory acts movement, Chartism, socialism, consumers’ co-operation.
  7. What is meant by the economic interpretation of history?
  8. What is the status of the laissez faire theory in the United States today?
  9. Make an argument that mankind would be better off if the inventors of the 18th century never lived.

*  *  *  *  *  *  *  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
IN
POLITICAL ECONOMY 12 B

Dr. Mitchell

May 31, 1938
9 a.m.

  1. What was the economic position of the country at the time the Constitution was formed?
  2. Discuss the “American System”
  3. Give an outline of banking from 1791 to the adoption of the Federal Reserve Act.
  4. Contrast economic conditions in North and South on the eve of the Civil War.
  5. Tell what you can of the growth of large-scale business enterprise and its economic and legislative consequences.
  6. Discuss the protective tariff in America.
  7. Identify briefly: Mathew Carey, Friedrich List, Salmon P. Chase, Nicholas Biddle, James B. Duke, Samuel Slator.
  8. Tell what you know of governmental intervention in economic life during the depression which began in 1929.

Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.

Image Source:  Broadus Mitchell in his office, ca. 1938. From the Johns Hopkins university graphic and pictorial collection. Colorized by Economics in the Rear-view Mirror.

Categories
Exam Questions Johns Hopkins Undergraduate

Johns Hopkins. Exam questions for undergraduate principles of accounting. Cooper, 1937-1938

In the newspaper account of Howard Earl Cooper’s retirement, the Dean of the Johns Hopkins University Evening College, called him “certainly the Mr. Chips” of the cohort retiring in 1969, i.e. a professor who was loved more by his students than he apparently loved doing research. But he was apparently very much loved by his students and we all know just how fickle the reception of our own research can be. One presumes he left with overwhelming fond professional memories.

But we are here to capture the reality of economics education through the years and Cooper’s exam questions from 1937-38 provide us another archival observation.

__________________________

Howard Earl Cooper
Chronology of his life and career

1899. October 17. Born in Canon City, Colorado.

Served in an Army intelligence unit in World War I.

1922-26, 1927-28. Registrar, School of Commerce, Accounts and Finance at the University of Denver.

1923. B.C.S. from the University of Denver

1925. S.B. from the University of Denver.

1927. S.M. in banking from Columbia University.

1927-28. Assistant Professor of Accounting at the University of Denver.

1928. Appointed instructor of accounting at Johns Hopkins University.

1932. Ph.D. in Political Economy from Johns Hopkins. Dissertation: The Application of Standard Costs to Factory Overhead Expenses.

1942. Appointed associate professor of accounting.

1946. Appointed professor of accounting.

1951-1969. Associate Dean of McCoy College (earlier called the Hopkins Evening College and later called the School of Continuing Studies) of Johns Hopkins University.

1985. October 9. Died in Baltimore, Maryland.

Sources:

  • Annual Report of the President for 1931-32, p. 246. Johns Hopkins University Circular (September 1932).
  • Retirement announced in The Baltimore Sun, May 24, 1969, p. 10.
  • Obituary in The Baltimore Sun, November 3, 1985, p. 38.

__________________________

Howard E. Cooper Jr. Memorial Scholarship

Mary Cooper Evans established this fund in 1985 in honor of Dr. Howard E. Cooper Jr., professor emeritus and former associate dean of McCoy College, who taught at Johns Hopkins from 1928 until his retirement in 1964. This fund supports students majoring in business.

__________________________

Course Description
Principles of Accounting
1937-1938

11 B. Principles of Accounting. Dr. Cooper. Three hours weekly, through the year. M., T., F., 2 p.m. Gilman Hall 312.

A study is made of financial statements as the goals of accounting endeavor, of the analysis and recording of business facts in the accounting books and records, and of the methods of opening and closing the books for a single proprietorship, partnership and corporation as well as the use of controlling accounts, and consignment accounts. Many practical problems are assigned to give facility in the handling of accounting records and a ready appreciation of their significance.

Prerequisite: Political Economy 1 C.

__________________________

Semester Examinations
Principles of Accounting
1937-1938

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 11 B

Dr. Cooper

February 2, 1938

Please write your answers to these questions legibly and in ink.

  1. (a) What is the purpose of classifying the items in a Balance Sheet?
    (b) What is the purpose of classifying the items in a Profit and Loss Statement?
    (10 points)
  2. (a) What is a trial balance?
    (b) What function does a trial balance serve?
    (10 points)
  3. Set up a schedule of debit and credit showing what kinds of items are to be debited and credited.
    (10 points)
  4. (a) What is the purpose of subdividing the journal?
    (b) What is the purpose of subdividing the ledger?
    (10 points)
  5. (a) What is a controlling account?
    (b) How would you account for the withdrawal of stock in trade by the proprietor in a set of books which had a sales and purchase journal and general journal and a subsidiary accounts receivable ledger?
    (10 points)
  6. From the following information prepare a worksheet.
Advertising $ 6,000 Miscellaneous Selling Expense $ 1,700
Accounts Payable 20,000 Notes Payable 25,000
Accounts Receivable 28,000 Motes Receivable 12,000
Bonds (Investments) 2,000 Purchases 128,000
Buildings 24,000 Purchase Discounts 2,400
Cash 14,000 Reserve for Bad Debts 700
Delivery Equipment 1,900 Returned Pur. and Allowances 4,000
Freight In 1,000 Returned Sales and Allow. 1,600
Furniture and Fixtures 5,800 L. A. Roberts, Capital 68,940
General Expense 5,600 L. A, Roberts, Per. (debit) 8,000
General Salaries 4,000 Sales 178,350
Insurance Expense 1,200 Salesmen’s Salaries 11,000
Interest Expense 1,000 Sales Discounts 680
Land 12,000 Store Equipment 3,000
Merchandise Inventory 24,000 Taxes 2,910
Depreciation on Buildings 5%.
Depreciation on Del. Equip. $720.
Depreciation on Furniture and Fixtures $800.
Depreciation on Store Equipment $400.
Bad Debts $1,760.
Prepaid Advertising $2,000.
Prepaid Insurance $200.
Accrued General Salaries $100.
Interest Accrued on Notes Payable $700.
Accrued Salesmen’s Salaries $350.
Accrued Taxes $300.
Deferred Income-Liability for Gift Certificates $750.
Accrued Interest on Bonds $60.
Accrued Interest on Notes Receivable $300.
Final Inventory $21,000

(50 points)

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THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
POLITICAL ECONOMY 11 B

June 2, 1938
1 p.m.

Please use ink and write clearly.

  1. Pic and Pat are partners with capital accounts of $15,000 and $20,000 respectively. Business has not been good. Their assets are converted into $30,000 cash. There are liabilities of $8,000. Set up T accounts and show how the business should be dissolved.
  2. Bergen and McCarthy were engaged in a partnership with capital investments of $10,000 and $20,000 respectively. They decide to admit Lamour into the partnership for a one third interest for an investment of $20,000 in the partnership. Set up T accounts illustrating the admission of the new partner.
  3. Benny and Allen are partners with investments of $10,000 and $25,000 respectively. Their profit and loss sharing ratio is 2 and 3 respectively. Benny is to be allowed a salary of $3,000. Allen receives no salary. Each are to be allowed interest of 6% on their investments. The profits for the year are $4,500. How should they be distributed.
  4. The Baker Corporation is organized under the laws of the State of Maryland with an authorized Capital stock of 10,000 shares with a per value of $100 each. On April 1, 1938 the stock was sold at 90. On April 15, 10% of the stock was donated back to the company and on the 20th was resold for 80. Journalize the above data.
  5. On January 1, 1937 the Vallee Corporation issues $500,000 worth of 5% bonds at 95. Coupons payable on June 30 and December 31. These bonds have ten years to run. Show journal entries for:
    (a) Issuing the bonds
    (b) Payment of interest on June 30 and December 31.
    (c) Ammortizing the discount as of December 31 on a straight line basis.
  6. Set up a cost of goods sold section of a profit and loss statement of a manufacturing company supported by a schedule of the cost to manufacture using your own figures.
  7. What are the advantages and disadvantages in the use of a voucher system?
  8. How would you calculate an open to buy estimate? Illustrate.
  9. Illustrate two methods of accounting for consignments out.
  10. Illustrate the accounting for neglected purchase discounts.

Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.

Image Source: Portrait of Howard Earl Cooper in the 1940 Johns Hopkins’ yearbook Hullabaloo, p. 9. Colorized by Economics in the Rear-view Mirror.

Categories
Exam Questions Finance Johns Hopkins

Johns Hopkins. Final examinations for Corporation Finance and Investments. Evans, 1937-1938

 

Associate Professor George Heberton Evans, Jr. taught the undergraduate course in corporation finance and investments at Johns Hopkins in the 1937-1938 academic year. Economics in the Rear-view Mirror has already posted some background information about him: Ph.D. from Johns Hopkins University, 1925

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 Course Description

6 B. Corporation Finance and Investments. Associate Professor Evans. Three hours weekly, through the year. Th., F., S., 10.30. Gilman Hall 314.

In the first part of this course the theory and practice of corporation finance will be considered with particular reference to the problems presented in the United States. The more important topics taken up include: advantages and disadvantages of corporate organization; classification and examination of the characteristics of stocks and bonds; the choice of different types of securities to be issued; methods by which these securities are floated; the methods and forms of syndicate underwriting; policy with reference to dividends and surplus; refunding of debt and provisions for amortization; receivership and reorganization.

The second part of the course will be devoted to the study of investments. The more important topics covered include: an analysis of the essentials of a good investment; an historical study of the rate of interest and of periodic fluctuations in the rate; definition of the essential legal characteristics of the various debt instruments and especially of the mortgage; historical and analytical description of the more important forms of investment, such as Government, State and municipal bonds, securities of private corporations, and real estate mortgages; theories of valuation and amortization.

Prerequisites: Political Economy 1 C, 2 C and 11 B.

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Course Examinations

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 6 B

Dr. Evans

February 4, 1938
9 a.m.

  1. Discuss the risks peculiar to the ownership of holding company securities.
  2. Discuss the trust as a method for effecting combination.
  3. What is the law of balanced return and how is it employed in corporation finance?
  4. What factors determine how much of a corporation’s earnings should be distributed to the stockholders?
  5. List the factors which are to be considered when drawing up a financial plan. Comment at some length upon two of the factors which you have listed.
  6. What is meant by trading on the equity? What principles may be set forth concerning trading on the equity?
  7. What is the chief advantage of the corporate form of enterprise?
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THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
IN
POLITICAL ECONOMY 6 B

Dr. Evans

May 31, 1938
1 p.m.

  1. What advantages arise out of timing bond investments? Answer in terms of the concepts employed in the course.
  2. When can an investor afford to overlook the possibility that a loan will not be paid at maturity? Discuss fully.
  3. What has been the relationship between the changes in the prices of goods and capital? How do you explain the relationship?
  4. When are the market forecasts of the probabilities with respect to the payment of principal and interest of bonds more likely to be consistent with the results?
  5. Discuss the investment trust or company as an investment mechanism.
  6. What seems to you to be the prospect with respect to the rate of interest? Give the bases for your opinion.

Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.

Image Source: Johns Hopkins University, Sheridan Libraries, Graphic and Pictorial Collection. George Heberton Evans at approximately 40 years old. The portrait was colorized by Economics in the Rear-view Mirror.