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Pedagogy Principles Teaching Undergraduate Yale

Yale. On different approaches to teaching college economics. Ruggles, 1964

Yale professor Richard Ruggles gave a great deal of thought to the organization of undergraduate and graduate instruction in economics. For a special issue of Challenge magazine dedicated to the question of improving economic literacy in society published in 1964, Ruggles contributed the following short essay on the difficulties of offering a single principles of economics course to meet the needs of very different publics compounded by the incentives that lead instructors to teach as though every student’s ultimate goal was to become an academic research economist. Plot-spoiler: one size does not fit all.

____________________________

On graduate training in economics.
Ruggles’ Yale conference, 1955.

During the fall and early winter of 1954-55, Richard Ruggles and colleagues in the Yale economics department organized a series of interviews with representatives of business, government, international organizations, and universities to review the ultimate goals of a graduate education in economics and to identify future desirable directions the evolution of economics training might take. The interviews were followed by panel discussions in the Spring of 1955 attended by, among others, seven future economics Nobel prize winners.

GRADUATE TRAINING IN ECONOMICS,
A Report on Panel Discussions at Yale, 1956
.

____________________________

TEACHING COLLEGE ECONOMICS
By Richard Ruggles

There is a wide divergence of opinion on what subject matter should be emphasized in the elementary college economics course. Some argue that its primary function should be to improve the student’s ability to be an intelligent citizen; others feel that the basic economics course should be handled as part of the general cultural background offered in a liberal arts college. A third view is that freshmen economics is basically a useful background subject for those entering business, law and engineering. And, finally, there are those who feel that introductory economics should be taught as a professional discipline. RICHARD RUGGLES, Professor of Economics at Yale University, examines the different approaches to the teaching of college economics, as well as the equally thorny problem of teaching materials.

The teaching of economics to college undergraduates is viewed with considerable uneasiness by both students and teachers. Many of the students find themselves in the difficult position of arbitrating between the ideas they hear in the classroom and those which are established doctrine in the minds of their parents. Others find the subject dull and uninspired, full of abstractions and generalizations which do not appear to match the reality around them. The teachers, on the other hand, are plagued by the multitude of purposes which the teaching of economics is supposed to serve. Disagreements among faculty members about the major purpose of economics teaching are often responsible for considerable acrimony.

First, there are those who believe that the primary function of economics training is to improve the student’s ability to function as a citizen and an individual. Proponents of this view point out that the level of economic literacy in the nation is very low. Neither voters nor legislators generally understand the basic problems involved in economic policy making. But, it is argued, if the next generation is properly trained, economic policy will improve. While the obvious irrationality of economic decision making at the national level propels many teachers of economics to concentrate on this aspect of economic education, others, who do not feel the frustration of economic events as acutely, place more emphasis on the individual aspects of economics training for citizenship. They may give priority to instruction which will help the student spend his money wisely, invest, and cope with financial problems he may encounter.

A second view of economic education considers economics as an integral part of the general education which should be given to all students attending a liberal arts college. The basic economics course is viewed as a cultural subject much like survey courses in literature, music, history and science. For such a purpose it is appropriate to paint with a broad brush, providing a survey course which is related to other subjects but also has its own individual stamp as a separate discipline. In the more extreme cases, economics may be submerged in a general course which treats the behavioral sciences as a group, or it may be combined with political science or history.

A third point of view presents the argument that economics is basically a tool subject, useful as a background for students who are intending to go into business, law or engineering. Economics in this role serves the same function as biology is supposed to serve for pre-med students. Economics is also viewed as useful for students in related disciplines such as history and political science. From this point of view, the major function of economics teaching is to provide needed service courses for students who are primarily concerned with other professions and disciplines. Emphasis is therefore placed on providing information on how the economy functions in terms of its institutions and government regulations. Finally, there are always a number of staff members who feel that economics should be kept pure and untainted. From this point of view, economics is a professional discipline with a body of rigorous theory which must be mastered if one is to enjoy the essence of the subject. Abstractions are not necessarily the means to this end; they are in large part the heart of the subject. Since the proponents of this view consider that it is the integrity of the discipline which is at stake, they often put up strong resistance to the service concept of economics, and even object to the presentation of institutional material or to any orientation of an applied nature. Instead attention is focused on the type of material which a Ph.D. candidate in economics is expected to master.

The content of economics as taught to undergraduates reflects these divergent objectives. The major exposure of college students to economics comes, of course, in the basic elementary course. Typically, 50 to 75 per cent of undergraduates take the elementary course in economics. No more than 10 to 15 per cent of these become economics majors. And no more than two to three per cent of economics majors go on to graduate training in economics. Thus the number of potential professional economists is a very minute percentage of those taking the elementary course, yet in many ways at many institutions the course is created for these few. At the major universities which offer graduate training in economics, the elementary course is often taught by graduate assistants. These graduate assistants are aspiring to be professional economists, and they have a tendency to wish that their students shared these aspirations. In fact, the pride and joy of a teacher is a student who wishes to be just like that teacher, and in a profession where theory, abstraction and a high degree of specialization are status symbols, the results for the teaching curriculum are obvious. The energy and enthusiasm of graduate assistants is often very great, and they are anxious to impart to the students the full kit of abstract tools which they themselves have so recently mastered. The course must also serve all the other purposes.

It must present a wide range of contemporary economic policy issues and information about major economic institutions. It must provide a comprehensive survey of economics for that large body of undergraduates who will never take any more courses in the area. It must also equip the student who expects to major in the field of economics with the tools he will need for more advanced courses. In most institutions the elementary course is a prerequisite for all other courses in economics, and it is expected that higher level courses will build on the foundation of the elementary course. The result of all of these pressures is to produce a jumbled polyglot of topics which are jammed into an incredibly short span of time. The major benefactors of these basic courses are those who teach them, since they are forced to master and digest an enormous amount of material before they can present it. In fact, a graduate student’s training is not complete until he has taught the elementary course.

At institutions which do not have graduate students, elementary economics may be quite a different subject. The content of the course will depend a great deal upon the individual teacher. Where the course is taught by someone just out of graduate school, he will tend to behave like his recent colleagues, the graduate assistants, and in these cases he will face many of the same problems. In some institutions, however, the course may revolve around such practical matters as how the stock market operates and the problems of family finance. In other instances, the elementary course may be a propaganda piece on how well the free enterprise system operates and how all problems would be solved if we left everything to the invisible hand as described by Adam Smith.

Economics courses beyond the elementary level at almost all schools are generally considered the domain of senior faculty members, whether or not they are equipped to teach them. Every professor regards the course he teaches as his own private property and does not take kindly to suggestions by his colleagues. Rightly or wrongly, he considers himself the authority on the subject he teaches. If, for any reason, the course must be taught by someone else, as for instance when the regular teacher goes on leave, it is usually found that the same course differs considerably in scope, orientation and content.

Thus, for example, a course on money and banking taught by one instructor may cover a body of material on banking institutions, banking practices, problems of credit, and the money supply. Another instructor teaching the same course may disregard such material entirely and cover instead problems of employment, prices and output, with heavy accent on fiscal policy and income analysis. As a result, it is often necessary to supply the name of the instructor as well as the name of the course in order to understand what training a student has had.

Teaching materials probably play an even more important role in economic education than do teachers. Many students can educate themselves if they are assigned good texts and readings, even though their teachers are mediocre or poor, but it is difficult for even the best teacher to provide a good course in the absence of good teaching materials.

Unfortunately, teaching materials are normally produced as a by product of academic life, with a mere fraction of the total resources devoted to the educational process. In a course of 20 or 30 students, instructional costs amount to about $100 to $200 per student, but the total cost of teaching materials will rarely be more than $10 to $20 — and most of that goes to the paper and printing industries, not to the more intellectual factors of production. Authors usually receive 10 to 15 per cent of the total amount spent on teaching materials, or approximately one per cent of the total teaching cost for the course as a whole. The preparation of teaching materials, furthermore, is never considered a full-time job. There is a mass of material produced, but most of it is developed on the side a kind of moonlighting activity. The fact that textbook writing often attracts the best talent in the profession is due to the existence of relatively high returns for those few who can turn out successful texts. But even the best talents could do a much better job if textbook writing were not just a spare-time activity.

Textbooks, like platforms of political parties try to be all things to all people. They are designed to cover a multitude of purposes, and try to echo the most widely accepted doctrines in a manner that will offend no one. Teachers are supposed to pick and choose what they want to use, rearranging and adding. The resulting mixture is often an ill-adapted set of disjointed and heterogeneous readings, and much of the potentiality for a consistent and cumulative body of teaching material is lost. In some fields, notably physics and mathematics, there are indications that the profession is sufficiently concerned about this problem to provide an organized effort to improve the quality of teaching materials. In economics, however, the development of teaching materials still depends upon the invisible hand.

It is quite possible that a different mix of the factors of production and some innovations in the teaching process could be introduced which would greatly improve teaching effectiveness and provide a greater feedback in terms of the advancement of the subject itself. At the present time, it is not feasible for textbook writers to undertake major efforts to fill in gaps in knowledge. Economics texts rely heavily on causal empiricism and reasoning by analogy; their major effort is devoted to organizing and presenting existing knowledge. But the preparation of good teaching materials should involve devoting substantial resources to those problem areas to which adequate attention has not yet been given.

The dynamic factors which economics relies upon to explain productivity growth in other sectors of the economy, such as specialization, division of labor and the development of new techniques, are all sadly lacking in the preparation of the discipline’s own teaching materials, and production is essentially still a handicraft process.

There is no obvious solution to this problem, but one thing is certain: the present industrial organization of the teaching profession does not readily foster the kinds of approaches which are capable of yielding a solution.

It is very difficult to evaluate the impact of college level economics courses. In terms of the prevailing views on major economic policies, it would appear that the economic and political temper of the times is a more important factor than the level of intellectual enlightenment. A recession accompanied by substantial unemployment or a major threat to a nation’s security will be quite effective in making both voters and legislators doubt the validity and meaningfulness of traditional balanced budget precepts. But in a prosperous peacetime economy, these doubts evaporate, and college graduates who once were exposed to economics but who are now a part of the business community echo the “sound” doctrines around them, despite the fact that such doctrines would result in slower growth, smaller profits and future recessions.

Despite the obvious shortcomings of confused objectives and inadequate resources devoted to the preparation of teaching materials, economic education nevertheless does progress. Much of this progress is due to the development of the subject itself. From this point of view the future holds considerable promise.

With the introduction of electronic data processing and the development of statistical techniques, economists are now able to formulate and test hypotheses in a manner which has not heretofore been possible. Up to now economics has been an armchair discipline, depending mainly on logical reasoning and causal empiricism. Perhaps in the near future it can evolve into the social science it claims to be. Then and only then can the teaching of economics reach its true potential.

Source: U.S. Congress. Joint Economic Committee. Subcommittee on Economic Progress. Economic Education: Hearings before the Subcommittee on Economic Progress of the Joint Economic Committee Congress of the United States vol. 2, Selected Materials (1967),pp. 231-234. Originally published in Challenge (Special Issue “Economic Literacy in a Free Society”, March 1964).

Image Source:  Richard Ruggles, noted economic statistician, diesYale Bulletin & Calendar Vol. 29, No. 23 (March 23, 2001). Image smoothed using AI.

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Harvard Libertarianism Principles Suggested Reading Syllabus

Antioch College. Syllabus for principles of economics. Watts, 1935-1936

Vervon Orval Watts (1898-1993)  was a Thomas Nixon Carver  inspired libertarian economist from pre-Keynesian Harvard times. Before going on to become the first head economist for the Los Angeles Chamber of Commerce (1939-46) and later an economic adviser to the Foundation for Economic Education starting in 1946, Watts taught economics at Antioch College (1930-36) and Carleton College (1936-39). His full biographical timeline can be found at the link above. For this post Economics in the Rear-view Mirror has transcribed the syllabus with the assigned and optional readings for the principles course Watts taught at Antioch College in 1935-36.

In the mid-1960s Watts was the Dean of the short-lived Freedom School Phrontistery in Colorado, the brainchild of Robert LeFevre that was to become a libertarian version of a Politics, Philosophy, and Economics program of study.

_____________________________

Harvard Ph.D. awarded in 1932

Vervon Orval Watts, A.B. (Univ. of Manitoba) 1918, A.M. (Harvard Univ.) 1923.
Subject, Economics. Special Field, Sociology. Thesis, “The Development of the Technological Concept of Production in Anglo-American Thought.”
Associate Professor of Economics, Antioch College.

Source: Report of the President of Harvard College, 1931-1932, p.124.

_____________________________

A Syllabus of Instruction
for
Economics 101-102

A Survey of Modern
Economic Life

V. O. Watts
Antioch College
1935-1936

PURPOSES OF THE COURSE

  1. To obtain information concerning American economic institutions.
  2. To develop the habit in the ordinary experiences of daily life of observing, analyzing and appraising the economic results of the conduct of individuals and of groups of individuals as wage-earners, employers, farmers, manufacturers, merchants, financiers, and legislators.
  3. To develop skill in tracing out and explaining the ramifications of the economic effects of an event.

CONDUCT OF THE COURSE

Required Readings

Study of the required readings, those starred and underlined in the list of references in this syllabus, constitutes the larger part of the work of this course. The following methods of study are therefore suggested:

  1. Note the relation of each chapter or section in the text or syllabus to the sections preceding and following it.
  2. Read or scan quickly the material in one or two chapters at a time before underlining or taking notes, so that you may gain perspective and distinguish the more significant principles from the accompanying illustrations and qualifications.
  3. Think out answers to the questions and problems given at the end of each section or chapter in the text or question book, referring back to the appropriate section of the text, when necessary, to clarify your understanding of the principles involved.
  4. Re-read the text, making written note of essential points in definitions of technical terns, statements of important principles, list of arguments pro and con on controversial issues, advantages and disadvantages of proposed policies, and qualifications of principles.
    This note-taking should provide opportunity for practice in expressing yourself in economics, therefore do not copy the author’s words, but put his ideas into your own words. It should also provide an aid to quick and effective review and help you to organize your thinking in this field, therefore keep your notes brief, well-organized, and neatly arranged.
  5. Before class discussions and examinations review those notes, practicing recall, illustrating the points noted, questioning and criticizing the author’s ideas, and formulating your own conclusions.

Periodicals

Each student in this course is expected to keep posted on current economic and political events and opinions through the regular reading of a newspaper or news weekly.

                  Some acquaintance with a number of leading journals in the fields of business and political economy is also required. To that end some of the journals listed below should be consulted with the following questions in mind concerning each: (1) How often is it published? (2) Who are the publishers or editors? (3) What is the professional status or occupation of its contributors? (4) What is the general character or point of view of most of its articles? (5) What special place does it fill in the field and to what type of reader is it likely to have most appeal?

Examine the table of contents for several recent issues of some of these magazines to see if there may be articles which especially interest you. In some journals you may find few or none, but in others you should find many such articles. Try to read at least one article during the semester in each of several of the journals listed.

Recommended Readings

The optional, or recommended, readings listed below present additional information or develop points of view differing more or less from that dominant in the required text. In some cases they may present clearer explanations of the points covered in the required readings.

Class Meetings

There are customarily three class meetings per week.

Conferences

Each student should meet the instructor for a conference at least once in each five-week period. To these conferences the student should bring his economics notebook and recent test papers.

Tests and Examinations

Approximately once a week there will be a ten-minute written test on the subject matter of the required readings. At the end of the first and third divisions there will be a one-hour examination on the readings and lectures. At the end of each semester there will be a three-hour examination covering the entire work of the course to date.

Answers to examination questions should be well planned and neatly written. Each distinct point or argument should be treated in a separate paragraph, and points correlative in meaning and importance should be numbered. All papers should be written in ink.

Oral Report

In the second division of the second semester each student will be expected to present to the class in a ten or fifteen minute report the results of his study outside the required readings of a topic chosen in consultation with the instructor. The time allotted for preparation of this report should be approximately one-tenth of the time devoted to the entire course. The report itself should not take the form of reading an essay, but should be a short talk from a brief outline.

Textbooks

L. A. Rufener, Principles of Economics

R. M. Rutledge, Everyday Economics

SCHEDULE OF READINGS, LECTURES, AND EXAMINATIONS

*  *  *  *  *  *  *  *  *  *

FIRST SEMESTER

First Week

*Rufener, ch.1. Wants, Goods, and Welfare

*Rutledge, ch. 1.

Stuart Chase, Your Money’s Worth

C. E. Carpenter, Dollars and Sense

Fairchild, Furniss, and Buck, Elementary Economics, chs. 1, 7.

S. H. Slichter, Modern Economic Society, ch. 22.

Lecture: The Significance of Scarcity.

Second Week

*Rufener:

ch. 2. Improving Methods of Production
ch. 3. Exchange, Value, and Price
ch. 4. Business Organization and Profits

*Rutledge, ch. 4.

V. O. Watts, The Myth of the Industrial Revolution

Third Week

*Rufener:

ch. 5. Demand and Supply and Market Price
ch. 6. Demand and Supply and Market Price (continued)
ch. 7. Demand Schedules for Producers’ Goods

*Rutledge, ch. 6

W. H. Hamilton, Current Economic Problems, selections 63-66

Slichter, chs. 12, 13, 14

Fairchild, Furniss, and Buck, chs. 11-15.

Fourth Week

*Rufener:

ch. 8. Costs of Production, Market Price, and Profit
ch. 9. Cost and Price in Agriculture: Wheat-Growing
ch. 10. The Rent and Price of Agricultural Land

*Rutledge, ch. 10.

J. B. Hubbard, Current Economic Policies, pp. 180-207

Slichter, chs. 17, 19. “Public Authority as a Determinant of Price”.

Fifth Week

*Rufener:

ch. 11. Indirect Costs in Agriculture
ch. 12. Economic Rent and the Unearned Increment
ch. 13. Cost of Production in Manufacturing: Decreasing Cost

*Rutledge ch. 12.

Fairchild, Furniss, and Buck, chs. 31, 32.

Hour Examination

Sixth Week

*Rufener:

ch. 14. Decreasing Costs, Indirect Costs, and Price
ch. 15. Monopoly and Monopoly Price
ch. 16. Industrial Monopolies and Government Control

*Rutledge:

ch. 15.
ch. 16.

F. A. Fetter, The Masquerade of Monopoly

M. W. Watkins, Industrial Combinations and Public Policy

Lecture:
The Economies and Limitations of Large-Scale Methods

Seventh Week

*Rufener:

ch. 17. Public Utilities and Government Control
ch. 18. Railroads and Government Control
ch. 19. Demand Schedules for Labor

Slichter, ch. 18.

Eighth Week

*Rufener:

ch. 20. Differences in Wages
ch. 21. Labor Organization

*Rutledge:

ch. 20
ch. 21

Paul Douglas, Real Wages in the United States

Slichter, ch. 24. “The Labor Bargain—The Determination of Wages”

Fairchild, Furniss and Buck ch. 35. “The General Law of Wages.”

Rufener, ch. 22. “Labor Legislation”

Lectures:

Principles of Justice in Distribution
Wage Theories
The Malthusian Principle of Population

Ninth Week

*Rufener:

ch. 23. The Price of Loans.
ch. 24. Producers’ Loans and the Rate of Interest.

*Rutledge, ch. 23.

*R. Epstein, Supplementary Readings in Economics, ch. 18. “The Nature of Capital and Interest”

Lecture:
The Nature and Importance of Saving and Investment.

Tenth Week

Semester Examination

*  *  *  *  *  *  *  *  *  *

SECOND SEMESTER

First Week

*Rufener:

ch. 25. The Qualities and Quantity of Money
ch. 27. Government Paper Money

*Rutledge:

ch. 25
ch. 27

*Rufener, ch. 28. Bank Deposits and Bank Notes

D. H. Robertson, Money

Rufener, ch. 26

Second Week

*Rufener:

ch. 29. Bank Credit and Business Cycles.
ch. 30. Government Regulation of Banking in the U.S.

*Rutledge, ch. 29.

Slichter, ch. 11, ch. 20 (pp. 471-491).

L. Robbins, The Great Depression.

H. Clay, J. Stamp, J. M. Keynes, The World’s Economic Crisis and the Way of Escape.

L. Ayres, The Economics of Recovery.

W. C. Mitchell, Business Cycles, ch. 1, sections 3, 4.

Lecture:
The Causes of the 1930-1935 Depression
.

Third Week

*Rufener:

ch. 31. Risk, Insurance and Speculation.
ch. 32. Clearings, Collections, and Exchange.

*Rutledge, ch. 31.

Slichter, ch. 30. “International Economic Policies—Monetary and Financial Problems.”

H. G. Moulton:

Germany’s Capacity to Pay.
The World War Debt Settlements.

Rufener, ch. 33.

Fourth Week

*Rufener:

ch. 34. International Trade
ch. 35. Protection and Free Trade.

*F. W. Taussig, Free Trade, the Tariff, and Reciprocity, pp. 44-57 and chs. 3,4,7, and pp. 168-179.

S. Crowther, America Self-Contained.

W. Redfield, Dependent America.

J. M. Jones, Tariff Retaliation.

F. Bastiat, Economic Sophisms.

H. F. Fraser, Foreign Trade and World Politics.

Rutledge, ch. 35.

Fifth Week

*Rufener:

ch. 37. Theories of Taxation.
ch. 38. The Tax System of the United States.

Hour Examination

Sixth to Ninth Weeks

*Rufener:

ch.39. Problems of Agriculture.
ch.36. The Functions of Government
ch.40. Evils of the Price and Profit System, and Remedies Proposed.

*Rutledge ch. 40.

*Hubbard, Current Economic Policies, pp. 3-21.

Stuart Chase:

The Tragedy of Waste.
The Economy of Abundance.

T. N. Carver:

Essays in Social Justice, chs. 4-7, 9-16.
The Economy of Human Energy, chs. 2, 3, 6—9.

P. Sorokin, Social Mobility.

A. T. Hadley, Standards of Public Morality, chs. 1-3.

H. M. Robinson, Relativity in Business Morals.

See also the following references to current periodicals.

Lectures:

Economic Inequality
The Social Nature of Property
The Economy of Abundance
Planned Production
A Program of Economic Reorganization
.

Tenth Week

Final Examination.

*  *  *  *  *  *  *  *  *  *

PERIODICALS

                  The following publications are devoted partly or wholly to economic and business subjects.

Academy of Political Science, Proceedings

*American Economic Review

*American Labor Legislation Review

American Statistical Association Journal

Annals of the American Academy of Political and Social Science

*Annalist

*Business Week

Chase Economic Bulletin

*Commercial and Financial Chronicle

Commonweal

Congressional Digest

*Economic Forum

Economic Geography

*Economic Journal

Factory Management and Maintenance

Foreign Affairs

Fortune

Harvard Business Review

International Labor Review

*Journal of Political Economy

*Magazine of Wall Street

Monthly Labor Review

Nation (New York)

National City Bank of New York Bulletin

Nation’s Business

New Republic

Personnel Journal

*Political Science Quarterly

*Printer’s Ink

*Quarterly Journal of Economics

Review of Economic Statistics

Yale Review

*Current issues in the Economics Reading Room, Main Bldg., Room 37.

The following articles in issues of the past year are especially recommended:

First Semester

“The Coal Resources of China,” W. Belden, M. Salter, Economic Geography, July 1935.

“The Public Utility Issue,” L. Olds, The Yale Review, Summer, 1935.

“Economic Effects of Wages and Hour Provisions in Codes,” T. O. Yntema, Journal of the American Statistical Association, Supplement (Papers and Proceedings) March 1935.

“The American Labor Movement Since the War,” D. J. Saposs, Quarterly Journal of Economics, Feb., 1935.

“Economic and Political Radicalism,” M. C. Kruger, American Journal of Sociology, May, 1935.
(The effect of the depression on the economic and political policies of organized labor.)

“Workers’ Education in the United States,” A. S. Cheyney, International Labor Review, July, 1935.

“The Negro in Industry,” G.S.Mitchell, The American Scholar, Summer 1935.
(The problem of race prejudice in trade unions)

“Incidence upon the Negroes,” C.S. Johnson, American Journal of Sociology, May, 1935.
(Incidence of the burdens of the depression upon negroes)

“Compensation of Corporation Executives, 1928-1932 Record,” J.C.Baker and W. L. Crum, Harvard Business Review, Sumner 1935.

“Old Age Security,” E. E. Witte, National Municipal Review, July 1935.

“Paying for Economic and Social Security,” J. P. Harris, National Municipal Review, August 1935.

“Problems of Social Security Legislation in the United States,” several articles in the Proceedings of the Academy of Political Science, June 1935.

Second Semester

“The Royal Road to Inflation,” A. Wolff, Economic Forum, Spring 1935.
(Shows how continued federal budget deficits may lead to currency inflation.)

“Trade Treaty Need,” Cordell Hull, “American Trade Policy and World Recovery,” P. Molyneaux, International Conciliation, June 1935.

“Death Duties, Enterprise, and the Growth of National Capital,” B. M. Anderson, Chase Economic Bulletin, August 6, 1935.

“The Outlook for American Cotton,” J. D. Black, Review of Economic Statistics, March 1935.
(Is America losing her foreign cotton markets?)

“The New Deal and Economic Liberty,” A. A. Berle, and other articles on government control of business, Annals of the American Academy of Political Science, March 1935.

“A Planned Economy for Wall Street,” C. H. Meyer, The American Scholar Summer 1935.
(The economic consequences of the Securities Acts of 1933, 1934)

“Government Control of Investments and Speculation,” R. S. Tucker, American Economic Review, Supplement, March 1935.

“The Paths of Economic Change,” Calvin B. Hoover, American Economic Review, Supplement (Papers and Proceedings) March 1935.
(Fascism, Communism, and Capitalism compared.)

“The Corporate State and NRA,” G. Bottai, Foreign Affairs, July 1935.

“The Permanent New Deal,” W. Lippmann, The Yale Review, Summer 1935.
(A comparison of the policies of Herbert Hoover with those of Franklin D. Roosevelt.)

“Borrowing Machines,” H. A. Davis, National Municipal Review, June 1935.
(Are the now “authorities” a blessing or menace?)

“Gyp Vendor & Co.,” G. B. Seybold, National Municipal Review, June 1935.
(New York’s attempt to secure economy in municipal expenditures discloses numerous rackets and forms of graft.)

Source: Hoover Institution Archives. Papers of V. Orval Watts, Box 1, Folder “Misc. writings, etc. 1930s + 1940s”.

Image Source: Harvard Class Album, 1932.

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Amherst Principles Undergraduate

Amherst. Economics course offerings. Crook, 1901-1902.

At the beginning of the twentieth century there was only one instructor for economics at Amherst College. He offered elective courses to seniors.  His name was James Walter Crook, Associate Professor of Political Economy, an 1895 Columbia University Ph.D, the successor to John Bates Clark who had briefly taught at Amherst from 1892 to 1895.

_________________________

James Walter Crook
Timeline

1859. Born December 21 in Bewdley, Ontario, Canada.

1883. Married Eva Maria Lewis of Manistee, Michigan. They had no children.

1891. A.B., Oberlin College.

1891-92. Instructor in history, Oberlin College.

1892-93. Graduate fellow in economics at the University of Wisconsin.

1893-94. Graduate student at the University of Berlin, Germany.

1894-95. Graduate fellow in economics at Columbia University.

1895. Lecturer on Taxation at Columbia University.

1895. Ph.D., Columbia University.

German Wage Theories: A History of Their Development. Vol. IX, No. 2 (1898) of Studies in History, Economics and Public Law. New York: Columbia University

189599. Assistant Professor of Political Economy, Amherst College.

1899-1907. Associate Professor of Political Economy, Amherst College.

1907-27. Professor of Political Economy, Amherst College.

1912. M.A., Amherst College.

1927—. Professor Emeritus, Amherst College.

1927-33. Professor of Public Speaking at Northeastern University.

1933. Died November 22 in Springfield, Massachusetts.

Sources: Annual yearbooks of Amherst College (The Olio), Crook’s Boston Globe obituary (October 23, 1933)

___________________________

Amherst College
Economics Course Offerings

1901-02
Professor Crook

The numbers 1, 2, 3, 4 denote, not the four classes, but the successive years in which courses are offered. The letters a, b, c denote the first, second, and third terms. The letters aa, bb, cc indicate courses parallel with courses a, b, c, respectively. [p. 51]

(1 a) Outlines of economics. Walker’s Political Economy; Hadley’s Economics. (Four hour course.)

(1 b) Advanced work in economic theory. Assigned readings in Smith, Ricardo, and Mill, with especial attention to Marshall’s Principles of Economics and Clark’s Distribution of Wealth. (1 a requisite.)

(1 bb) Money and banking. Dunbar’s Theory and History of Banking; White’s Money and Banking; Taussig’s Silver [Situation in the United States]. (1 a requisite.)

The practical monetary problems of the United States are considered, and the systems of banking practised in England, France, Germany, and the United States are compared.

(1 c) Public finance; taxation; public expenditures; public debts; financial administration. Adams’s Science of Finance. (1 a requisite.)

(1 cc) Practical economic problems; transportation; monopolies; trusts. Thesis required. Hadley’s Railroad Transportation; Jenks’s Trust Problem, (1 a requisite.)

Source: Amherst College Catalogue for the Year 1901-02, pp. 53-54.

Image Source: James Walter Crook in The Olio 1905, p. 23.

Categories
Bibliography Harvard Principles

Harvard. Linked References to 1st ed of Principles of Economics. Taussig, 1911

The first edition of Frank W. Taussig’s Principles of Economics was published in 1911. The two volumes were divided into eight books with well over one hundred items listed in the references. All but two of those items have been found in internet archives and links have been provided to them in the transcription below. I have also included first names for all but one of the authors.

Outstanding Challenge: Find on-line copies of

Ludwig Pohle. Deutschland am Scheidewege (1902);
Karl Theodor von Eheberg. Finanzwissenschaft (1909 edition).

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Volume I

BOOK I
THE ORGANIZATION OF PRODUCTION
References

                  On productive and unproductive labor, see the often-cited passages in Adam Smith, Wealth of Nations, Book II, Chapter III; and those in John Stuart Mill, Principles of Political Economy, Book I, Chapter III. Wilhelm Roscher, Political Economy, Book I, Chapter III, gives an excellent historical and critical account. Among modern discussions, none is more deserving of attention than the paper by Professor Thorstein Veblen, on “industrial” and “pecuniary” employments, in Proceedings of the American Economic Association, 1901, No. 1. A recent discussion, with not a little of clouded thought, is in the Verhandlungen des Vereins für Sozialpolitik, 1909; especially a paper by Professor Eugen von Philippovich and the discussion thereon.

                  On the division of labor, Charles Babbage, On the Economy of Machinery and Manufactures (1837), is still to be consulted. On modern developments, the Thirteenth Annual Report of the Commissioner of Labor (U. S.) on Hand and Machine Labor (1899) [Volume I; Volume II] contains a multitude of illustrations. A keen analysis of the division of labor in its historical forms is in Karl Bücher, Die Entstehung der Volkswirthschaft (7th ed., 1910) [3rd ed. 1901; 10th ed. 1917]; translated into English from the 3d German edition under the title Industrial Evolution (1901). On the industrial revolution of the eighteenth century, see the well-ordered narrative in Paul Mantoux, La révolution industrielle au xviiie siècle (1906), and the less systematic but more philosophical account in Arnold Toynbee, Lectures on the Industrial Revolution (10th ed., 1894).

                  On capital, see the references given below, at the close of Book V. Much as has been written of late on corporate doings and corporate organization, I know of no helpful references on the topics considered in Chapter 6.

BOOK II
VALUE AND EXCHANGE
References

                  Easily the first and most valuable book to be consulted on the theory of value is Alfred Marshall, Principles of Economics (6th ed., 1910) [4th ed., 1898; 7th ed., 1916], especially Books III, IV, V. An admirable introductory sketch is in Thomas Nixon Carver, Distribution of Wealth, Chapter I. On the play of utility, see Philip Henry Wicksteed, The Common Sense of Political Economy (1910); Chapter II of Book I and Chapter III of Book II are valuable supplements to Marshall’s discussion of consumer’s surplus. Compare, also, Maffeo Pantaleoni, Pure Economics (English translation, 1898), Part II.

On speculation, consult Henry Crosby Emery, Speculation in the Stock and Produce Exchanges of the United States (1896).

                  The so-called Austrian theory of value, in which stress is laid on utility as dominating value, is set forth most fully in Friedrich von Wieser, Natural Value (English translation, 1893). A more compact statement is in Eugen von Böhm Bawerk, Positive Theory of Capital (English translation, 1891), Books III and IV.

BOOK III
MONEY AND THE MECHANISM OF EXCHANGE
References

                  On money, Karl Helfferich, Das Geld (2d ed., 1910) 3rd ed., unchanged with a statistical addition to the 2nd ed, 1916, is an excellent descriptive and analytical book. On the theory of money and prices, Irving Fisher, The Purchasing Power of Money (1911), also an excellent book, was published just as the present volume was going to press; I am glad to find its conclusions in essential accord with my own. An entirely different mode of reasoning, and different conclusions, which I find myself unable to accept, are in James Laurence Laughlin, The Principles of Money (1903). Joseph French Johnson, Money and Currency, has convenient accounts of the monetary history of various countries, but is of no value on questions of theory.

                  On banking, Charles Franklin Dunbar, Chapters on the Theory and History of Banking (ed. by Oliver Mitchell Wentworth Sprague, 1901), is a little classic, and contains also abundant references.Hartley Withers, The Meaning of Money, gives a lucid and interesting account of banking conditions in Great Britain. Charles Arthur Conant, A History of Modern Banks of Issue, is useful for its descriptive matter. A vast mass of information on the banking problems and experiences of recent years is in the Publications of the National Monetary Commission (1909-1911); ably reviewed by Wesley Clair Mitchell] in Quarterly Journal of Economics, May, 1911.

                  On the questions of principle underlying bimetallism, see Leonard Darwin, Bimetallism (1898). The same questions are considered in Karl Helfferich, Das Geld (1910) [3rd ed., unchanged with a statistical addition to the 2nd ed, 1916], already referred to. Consult, also, James Laurence Laughlin, History of Bimetallism in the United States; Henry Parker Willis, A History of the Latin Monetary Union (1901); Piatt Andrew, “The End of the Mexican Dollar,” in Quarterly Journal of Economics, Vol. XVIII, p. 321 (May, 1904).

                  On index numbers and methods of measuring prices, William Stanley Jevons, Investigations in Currency and Finance  (1884), though of older date, is still to be read, as among the most interesting and stimulating on this topic. See also Professor Francis Ysidro Edgeworth’s] brilliant memorandum, in Report of the British Association for the Advancement of Science, 1887, pp. 247-301; and Correa Moylan Walsh, The Measurement of General Exchange Value (1901).

                  On rising and falling prices in relation to the rate of interest, see Irving Fisher, Appreciation and Interest, Public. Am. Econ. Assoc., First Series, Vol. XI (1896), and the same writers The Rate of Interest (1907), Chapters V and XIV. See also two papers by John Bates Clark, in the Political Science Quarterly, Vol. X, p. 389 [“The Gold Standard of Currency in the Light of Recent Theory”], and Vol. XI, p. 259 [“Free Coinage and Prosperity”](1895, 1896), and criticism of these by Correa Moylan Walsh, “The Steadily Appreciating Standard,” Quarterly Journal of Economics, Vol. XI, p. 280 (1897).

                  Notwithstanding the abundant literature on crises, there is no good book on the underlying questions of principle. Good historical books are: Clément Juglar, Des crises commerciales et de leur retour périodique en France, en Angleterre, et aux États-Unis (2d ed., 1889), and Oliver Mitchell Wentworth Sprague, A History of Crises under the National Banking System (1910; published by the National Monetary Commission).

BOOK IV
INTERNATIONAL TRADE
References

                  On the foreign exchanges, see Viscount George Joachim Goschen, The Theory of the Foreign Exchanges (last ed., 1901), and George Clare, The A B C of the Foreign Exchanges [Frank Taussig’s copy!] (1895). On international trade, the chapters in John Stuart Mill, Principles of Political Economy (last ed., 1871), Book III, Chapters 17 seq., though in some parts unduly elaborated, are still unsurpassed. A good modern statement, almost too compact, is in Charles Francis Bastable, The Theory of International Trade (4th ed., 1903). A mathematical treatment is in three papers by Francis Ysidro Edgeworth, “The Theory of International Values,” in the Economic Journal, Vol. IV [March, September, December] (1894). I venture to refer also to my own paper on “Wages and Prices, in Relation to International Trade,” Quarterly Journal of Economics, Vol. XX, August, 1906.

                  Notwithstanding the mass of literature on free trade and protection, no book covers the controversy satisfactorily. Henry Fawcett, Free Trade and Protection (1885), states the simpler reasoning in favor of free trade and refutes the cruder protectionist fallacies. Arthur Cecil Pigou, Protective and Preferential Import Duties (1906), is able and discriminating, but written with reference chiefly to the contemporary controversy (1895-1905) in Great Britain. On this, see also William James Ashley, The Tariff Problem (2nd ed. 1904). On the German debates, see, among others, Ludwig Pohle, Deutschland am Scheidewege (1902), and Adolph Wagner, Agrar- und Industriestaat (1902), both in favor of protection for agriculture; and on the other side, Lujo Brentano, Die Schrecken des [überwiegenden] Industriestaats (1901), and Heinrich Dietzel, Weltwirthschaft und Volkswirthschaft (1900). On the tariff history of the United States, Edward Stanwood, American Tariff Controversies in the Nineteenth Century (1903) [Volume I(1903); Volume II (1904), a narrative account of legislation and discussion by a protectionist; and Frank William Taussig, The Tariff History of the United States (ed. of 1909) [5th ed. 1910].

Volume 2

BOOK V
THE DISTRIBUTION OF WEALTH
References

                  On the theory of distribution in general, as on that of value, the first book to be mentioned is Alfred Marshall, Principles of Economics, Books IV, V, VI (6th ed., 1910) [5th ed., 1908]. A compact and able theoretic analysis is in Thomas Nixon Carver, The Distribution of Wealth (1904). Entirely different in method, with a wealth of historical and statistical analysis, and large-minded treatment of the underlying social problems, is Gustav von Schmoller, Grundriss der Volkswirtschaftslehre, Books III, IV (1900–1904; French translation, 1905–1908).

                  Among the many modern books on capital and interest, Eugen von Böhm-Bawerk, Positive Theory of Capital (English translation, 1891, has most profoundly influenced recent economic thought. A revised edition of the German is in process of publication, the first part having appeared in 1909) [Note —German 4th edition (1921): Kapital und Kapitalzins: Part I, Geschichte und Kritik der Kapitalzins-Theorien; Part II, Positive Theorie des Kapitales, Vol. I; Part II, Positive Theorie des Kapitales, Vol. II (Exkurse)]. Not inferior to this in intellectual incisiveness, but marked, like it, by some excess of refinement and subtlety, are Irving Fisher’s two volumes, The Nature of Capital and Income (1906), and The Rate of Interest (1907). John Bates Clark, The Distribution of Wealth (1899), sets forth a theory of wages and interest as the specific products of labor and capital; I find myself unable to accept the reasoning, but to some economists it seems conclusive. The view that there is no essential difference between interest and rent (see Chapter 46) is maintained not only by I. Fisher and J. B. Clark, but by Frank Albert Fetter, Principles of Economics (1904). An able book by a French thinker is Adolphe Landry, L’intérêt du capital (1904).

                  On urban site rent, interesting descriptive matter is in Richard Melancthon, Principles of City Land Values (1903).

                  James Bonar, Malthus (1885), gives an excellent account of Malthus’s writings and of the earlier controversy about his doctrines. Arsène Dumont, Dépopulation et civilisation (1890), not a book of the first rank, states the modern French view, laying stress on “social capillarity”, as explaining the decline in the birth rate, and enlarging on the desirability of an increasing population. Émile Levasseur, La Population française (1892), Vol. III, Part I, gives a good summary statement on the base of population compared with the growth of wealth. Georg von Mayr, Statistik und Gesellschaftslehre [Vol. I, Theoretische Statistik(1895)]: Vol. II, Bevölkerungsstatistik (1897), Vol. III, Part I, Moralstatistik (1910), gives a model summary of statistical data and a judicial statement on questions of principle.

                  Notwithstanding the enormous mass of literature on social stratification, there is no one book that treats this topic in a manner thoroughly satisfactory. Cyrille van Overbergh, La classe sociale (1905), may be consulted.

BOOK VI
PROBLEMS OF LABOR
References

                  A compact discussion of the topics in this Book is in Thomas Sewall Adams and Helen L. Sumner, Labor Problems (1905). On trade-unions, the elaborate book by Sidney and Beatrice Potter Webb, Industrial Democracy (1902), is of high quality; written with special regard to English experience, and stating too strongly the case in favor of the trade-union. On the American situation there is no good systematic book; but excellent studies on some phases are in Jacob Harry Hollander and George Ernest Barnett, Studies in American Trade-Unionism (1905). On Australasian experience, see Victor Selden Clark, The Labour Movement in Australasia (1906); and on the history of labor legislation in England, B. L. Hutchins and Amy Harrison, A History of Factory Legislation (1903). John Rae, Eight Hours for Work(1894), is a good inquiry on experience to the date of its publication. On workingmen’s insurance and allied topics, see Henry Rogers Seager, Social Insurance: A Program of Social Reform (1910), brief and excellent. More detailed and more informational is Lee Kaufer Frankel and Miles Menander Dawson, Workingmen’s Insurance in Europe (1910); still more elaborate is the Twenty-fourth Annual Report of the Commissioner of Labor (U. S.), Workingmen’s Insurance and Compensation Systems in Europe (2 vols., 1910). William Henry Beveridge, Unemployment (1910), is an able book, at once sympathetic and discriminating. A good general account of the co-öperative movement is Charles Ryle Fay, Co-öperation at Home and Abroad (1908).

                  For more detailed bibliographical memoranda, see the Guide to Reading in Social Ethics and Allied Subjects, published by Harvard University (1910).

BOOK VII
PROBLEMS OF ECONOMIC ORGANIZATION
References

                  On railways, Arthur Twinning Hadley, Railroad Transportation (1885), though of older date, has not been completely superseded. More recent are William Mitchell Acworth, The Elements of Railway Economics (1905), and Emory Richard Johnson, American Railway Transportation (new ed., 1910); the latter written primarily as a textbook for American colleges. An able monograph is Matthew Brown Hammond, Railway Rate Theories of the Interstate Commerce Commission (1911); compare John Maurice Clark, Standards of Reasonableness in Local Freight Discriminations (1910). Among foreign books, Clément Colson, Transports et tarifs (1890), though technical and detailed, is of high value. On combinations and trusts, Robert Liefmann, Kartelle und Trusts (1909) [French translation, 1914], gives an excellent compact account of the German situation; and Henry William Macrosty, The Trust Movement in British Industry (1907), a detailed survey of that in Great Britain. Three usable books on American conditions are Richard Theodore Ely, Monopolies and Trusts (1900), Jeremiah Whipple Jenks, The Trust Problem(1900), Edward Sherwood Meade, Trust Finance (1903).

                  On public ownership, Leonard Darwin, Municipal Trade (1903), is an acute critical book, by an opponent; a briefer statement of the same reasoning is in this author’s Municipal Ownership (1907). A mass of information and discussion on both sides is in the Report on the Municipal and Private Operation of Public Utilities, published by the National Civic Federation (3 vols., 1907) [Vol. I; Vol. II; Vol. III]. A detailed treatment of the relation of municipalities to “public utilities” is in Delos Franklin Wilcox, Municipal Franchises (2 vols., 1910-1911) [Vol. I; Vol. II].

                  The books on socialism deal largely with controversies which do not proceed to the heart of the matter. This seems to me to hold of Karl Marx, Das Kapital (English translation, 1891), the most famous and influential of socialist books. Among the innumerable discussions and refutations of the Marxian doctrines may be mentioned Eugen von Böhm-Bawerk, Zum Abschluss des Marxchen Systems, Marx and the Close of his System (English translation, 1891), and James Edward Le Rossignol, Orthodox Socialism: a Criticism (1907). A concise and vigorous statement, based mainly on Marx, is in Karl Kautsky, The Class Struggle and The Social Revolution (English translations, 1910 [and 1902, respectively]). John Spargo, Socialism (1906), is a popular statement of socialist tenets and proposals. Among recent socialist books, James MacKaye, The Economy of Happiness (1906), advocates socialism in a train of rigorous utilitarian reasoning.

                  Among expository and critical books, Albert Schäffle, The Impossibility of Social Democracy, and The Quintessence of Socialism (English translations, 1892 and 1902), are excellent, especially the last-named. The most stimulating and discriminating advocacy and discussion of socialism is often by writers who do not pretend to be “scientific.” Such are Herb Goldsworthy Lowes Dikinson, Justice and Liberty(1908).

                  On this Book, as on Book VI, see the bibliographical memoranda in the Guide to Reading in Social Ethics and Allied Subjects, published by Harvard University (1910).

BOOK VIII
TAXATION
References

                  Charles Francis Bastable, Public Finance (2d ed., 1895), covers the whole field, and is able and well-judged, though not attractively written. Among foreign books, Karl Theodor von Eheberg, Finanzwissenschaft (new ed., 1909), is a good book of the German type; and Paul Leroy Beaulieu, Science des Finances (new ed., 1906. Vol. I; Vol. II), is an able French book, full of good sense and information, but not strong on some questions of principle. On progression, the view presented in Chapter 66 is similar to that of Adolph Wagner, Finanzwissenschaft, Vol. II, § 396 seq. (ed. of 1880), and is different from that in Edwin Robert Anderson Seligman’s Progressive Taxation in Theory and Practice (new ed., 1908). The last-named writer’s Income Tax (1911) is an excellent survey of legislation and experience; and in his Essays on Taxation (new ed., 1911 [1913 edition linked here]), there is a valuable discussion of the American property tax system.

Image Source: Maggs Bros. Ltd. advertisement for a copy of the first edition of Frank W. Taussig’s Principles of Economics (1911). List price (as of July 27, 2024): US$ 765.35.

Categories
Exam Questions Harvard Principles

Harvard. Enrollment and semester examinations for principles of economics. Taussig, Bullock and Andrew. 1907-1908

In addition to the 1907-08 exam questions for Principles of Economics taught at Harvard by Frank W. Taussig, Charles J. Bullock, and A. Piatt Andrew, this post provides links to the previously transcribed 36 years worth of exams.

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Exams for principles (a.k.a. outlines)
of economics at Harvard
1870/71-1906/07

1871-75.
1876-77.
1877-78.
1878-79.
1879-80.
1880-81.
1881-82.
1882-83
.
1883-84
.
1884-85.
1885-86.
1886-87.
1887-88.
1888-89.
1889-90.
1890-91.
1891-92.
1892-93
.
1893-94.
1894-95.
1895-96
.
1896-97.
1897-98.
1898-99.
1899-00.
1900-01.
1901-02.
1902-03.
1903-04.
1904-05.
1905-06.
1906-07.

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Course Enrollment
1907-08

Economics 1. Professor [Frank William] Taussig and Asst. Professors [Charles Jesse] Bullock and [Abram Piatt] Andrew, assisted by Dr. [Charles Phillips] Huse, and Messrs. [?] Hall, [Probably: Walter Max Shohl, A.B. 1906] Shohl and [Abbott Payson] Usher [A.B. 1904]. — Principles of Economics.

Total 482: 1 Graduate, 8 Seniors, 76 Juniors, 290 Sophomores, 66 Freshmen, 41 Others.

Source: Harvard University. Report of the President of Harvard College, 1907-1908, p. 66.

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ECONOMICS 1
Mid-year Examination, 1907-08

Arrange your answers strictly in the order of the questions.

  1. Does saving lead to investment? Does investment lead to the increase of capital? Does the increase of capital lead to the decline of interest? If so, explain in each case why and how; if not, why not?
  2. Suppose that by the use of more prolific seeds the yield of agriculture were very greatly increased; what immediate consequences would you expect as to
    1. The price of agricultural produce;
    2. Economic rent on agricultural land;
    3. The earnings of farmers?

Wherein might the ultimate consequence be different?

  1. Is there any inconsistency between the propositions that
    1. Value is governed by demand and supply;
    2. Value is governed by marginal utility;
    3. The price of a monopolized commodity may be different for different purchasers?
  2. How far does the price of a copyrighted book depend on its cost? How far does its cost depend on its price?
  3. Explain what is meant by “non-competing groups,” and how the situation indicated by that phrase is connected with questions concerning trade-unions and the closed shop.
  4. What effect has the unattractiveness of an employment on the wages of those engaged in it? How do you explain the current scale of wages for unskilled labor? For “sweated” laborers? For domestic servants?
  5. Is it beneficial to laborers as a class that there should be (1) great mobility and free competition between business men and investors; (2) great mobility and free competition between the laborers themselves?

One of the following questions may be omitted.

  1. Suppose coöperative production were universally adopted, how would business profits be affected? Suppose profit-sharing were universally adopted, how would they be affected? Suppose all laborers organized in trade-unions, how would they be affected?
  2. What is the significance for labor questions of
    1. “Making work”;
    2. Luxurious expenditure by the rich;
    3. Jurisdiction disputes?
  3. Explain precisely what social movement you associate with the following:—
    1. Rochdale Pioneers;
    2. Leclaire;
    3. Knights of Labor;
    4. American Federation of Labor.

Source: Harvard University Archives. Harvard University. Mid-year Examinations, 1852-1943. Box 8, Bound Volume: Examination Papers, Mid-Years 1907-08.

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ECONOMICS 1
Year-end Examination, 1907-08

  1. Wherein is there resemblance, wherein difference, between the causes that determine the value of

a ton of coal;
an ounce of gold;
a dollar of inconvertible paper?

  1. Wherein, if at all, are the following subject to the law of monopoly value:—

urban sites;
the output of a protective industry;
railway transportation?

  1. It is said that “charging what the traffic will bear” may rest on two different causes. Do you find either or both of the causes in (a) railway rates; (b) the prices of illuminating oil; (c) the prices of cotton-seed oil?
  2. Explain the following terms:—

index number;
bimetallism;
limping standard;
Independent Treasury system;
Gresham’s Law.

  1. In the year 1906 the exports of merchandise from the United States exceeded the imports by about 500 million dollars. In the same year the imports of gold were about 50 million dollars.

(a) Can such a disparity continue for a long period of years? If so, why? If not, why not?

(b) So long as it continues, do you regard the situation as favorable for the people of the United States?

  1. Explain the measures taken in periods of great financial stress in (a) England, (b) Germany, (c) the United States; and mention in each case to what extent these measures were contemplated by existing legislation.
  2. What determines the selling-price of (a) an urban site advantageous for business; (b) the shares of a street railway corporation; (c) the shares of a “trust” whose capitalization much exceeds its tangible property? In which of these cases, if in any, can it be said that there is “over-capitalization”?
  3. Suppose the public-service industries (“monopolies of organization”) to be placed under government management. Do you think wages would be lower or higher in these industries? Would the general level of wages in the community be higher or lower?
    On the same supposition, do you think prices of the commodities or services supplied by those industries would be higher or lower? Would the general level of prices be higher or lower?
  4. Does the encouragement of domestic industries through tariff duties cause a saving by doing away with the expense of transporting goods from foreign countries? Are such duties likely to bring a charge on the foreign producer or on the domestic consumer?

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1915. Box 8, Bound vol. Examination Papers 1908-09; Papers Set for Final Examinations in History, Government, Economics,…,Music in Harvard College (June, 1908), pp. 26-27.

Image Source: Faculty portraits of Frank W. Taussig, Charles J. Bullock, A. Piatt Andrew. The Harvard Class Album, 1906. Colorized by Economics in the Rear-view Mirror.

Categories
Barnard Columbia Principles Undergraduate

Columbia and Barnard. Essay on Economics in the College Course. Henry R. Mussey, 1910

In the next post you will be provided a proper introduction to the Columbia University economics Ph.D. alumnus (1905), Henry Raymond Mussey. In doing a proper background check on the man and his career, I found the following essay that many, or probably even most, historians of economics would not stumble upon. Mussey is thinking out loud about what should be done pedagogy-wise and his remarks seem remarkably current.

_________________________

ECONOMICS IN THE COLLEGE COURSE

Henry Raymond Mussey
Barnard College, Columbia University

                  The aim of economics teaching in college depends on the purpose of college training as a whole. Increasing wealth brings to our institutions growing numbers of students of varying earnestness and capacity. During the freshman year the college ought to weed out ruthlessly the indifferent and the incompetent. During the remaining years it ought to train for leadership a genuine intellectual and spiritual aristocracy, an aristocracy of keen mind, broad vision, and unfailing enthusiasm; an aristocracy capable of the wise, far-seeing leadership so essential in a democracy. The college gains nothing by yielding to the spurious utilitarianism that demands “practical” training, — that is, training immediately valuable in dollars and cents. I would hold fast to the cultural ideal, though I would not hold fast to the old idea of culture.

                  Four things the college ought to do for its students. It ought to interest them broadly in practically all human affairs, giving them a series of pegs, so to speak, on which to hang what they will learn in after life. It ought to bring them into contact with the world’s best minds past and present. It ought to teach them scientific habits of work and thought. It ought to develop in them a sense of proportion, sanity, balance, ability to look things full in the face, to form judgments and choose courses of action in view of all the consequences involved, both direct and indirect. Such is the culture the college ought to give its students — to the gifted few in rich measure, to ordinary students according to their capacity.

                  In such a college course, what is the aim of economics teaching? First of all, to train the student in scientific thinking and to cultivate in him the power of practical judgment. Before beginning economics, he should have had some training in mathematics and natural science, thus learning the first elements of scientific method in fields where conditions are simple and capable of experimental control. To form habits of exact and patient observation, to learn to formulate and test theories, and to make logical connections of cause and effect, — these things the student should learn from natural science. Passing then to the study of economics he meets a new and more refractory set of facts, that do not fit his formulas and that can be used by the skillful teacher to break down much of the cocksureness that often afflicts the immature student in his first enthusiasm at having really learned something in natural science. This greater complexity of facts compels him in each case not only to scrutinize carefully his premises, but to make sure that he has included all the important premises. Moreover, the facts, even when properly classified, do not “stay put.” Economic conditions are constantly changing, and even the human motives behind economic actions have nothing like the constancy and reliability of the law of gravitation, for example. The conclusions of economics, therefore, are at best only provisional; this very in exactness and partialness, in my judgment, give to the subject additional value as a means of scientific training. The student who has been led to work out the conditions and implications of the Malthusian theory of population, for example, will learn to walk warily among facts and to avoid hasty and sweeping generalizations. A science that teaches a student to pick out essential and underlying causes, and at the same time to give due weight to temporary disturbing influences, may fairly claim high rank as a means of developing scientific temper and habits of work.

                  Especially is it valuable for the development of practical judgment; for questions of social policy are rarely capable of mathematical demonstration. Statesman, legislator, administrator, reformer, — all alike must decide things on a balance of considerations. Even in everyday life there are few clear-cut questions of right and wrong, wise and unwise. A study like economics, in which some phenomena have been reduced to a considerable degree of order and coherence, while others remain intractable, is fitted in peculiar degree to further that sane, alert, cautious habit of judgment that characterizes both the true scientist and the level-headed man of affairs.

                  Further than this, economics in college ought to help students get rid of class prejudice. They come to college with all sorts of astonishing notions on economic and social affairs, unconsciously picked up from parents and friends: prejudices against trade unions and trusts, against foreigners and anarchists, against democracy and progress, against everything imaginable — but in any case prejudices and not reasoned convictions. They generally come, too, with a rich store of social good-will and desire to be really of use. Such desire, lacking wise direction, sometimes runs off into mushy sentimentalism or barren radicalism. Prejudices and enthusiasm alike need rationalizing; both alike give the teacher an opportunity of setting the student to thinking about the truth or falsity of his particular notion, of suggesting to him the tests he must apply to it. Since all social questions have an economic basis, this is peculiarly the opportunity of the economics teacher. Wherever he finds a prejudice he ought to destroy it, compelling the student either to abandon it, or to substitute for it a conviction based on reason. This is a part of that process of broadening the interest of the student which was suggested as the first duty of the college.

                  Finally, economics ought to help the student acquire a sane attitude toward social improvement. Realizing in some measure the importance of the social institutions worked out in the world’s experience, yet seeing that they are always relative to particular conditions of time and place, he can be brought to face the great problems of present-day economic reconstruction and social reform with broad sympathy, patient regard for facts, recognition of economic laws, tolerance of other opinions and points of view. His training in economics ought to give him not a set of cut and dried opinions, but a point of view and a method of work, the one sane, the other scientific. Rightly enough the country demands leaders with such equipment: college economics ought to help supply that equipment. The advancement of the science is a noble aim, but that task rests on the economist as investigator and university teacher. The college today, as ever, should be the maker of men and women. The sanction of economics teaching in college is primarily not scientific, but social. It attains its social end, however, only as it is uncompromisingly scientific.

                  This statement of aims indicates roughly when economics should be introduced into the college course, and what it should include. It is traditionally and rightly a junior subject. On the whole, it is rarely that a student will profit by formal economic study during the first half of the college course. Give him first some natural science and history. To allow freshmen to study economics is in my judgment distinctly wrong, and its election by sophomores, save in exceptional cases, is to be discouraged. It is better to take it too late rather than too early, no matter if the opportunity for advanced work is lessened thereby. Few college departments have much more to give a student after two years’ work.

                  The real problem is that of the elementary course, and it must be remembered that three students out of four will take no other. It should be a solid course of five hours a week, or its equivalent, throughout a whole year, taking a third of the student’s time. In my experience students in a five-hour course do much more than twice the same amount of work as in a three-hour one. (This change, by the way, I would extend to other subjects besides economics.) The increased frequency of impact of instructor on student, the student’s unpleasant consciousness that each day brings a new demand, the very momentum gained by daily meetings, — all combine to improve the quality of the work.

                  Yet more important, increased time makes possible an enlarged content, and this is vitally important. At the recent conference on the teaching of elementary economics [See Journal of political economy, December, 1909.] an astonishing diversity of ideas and methods was disclosed, yet it was pretty clearly shown that most teachers make theory the staple of their work, however much they sugar-coat it. They are right in so doing, for fundamentally they are trying to lead the student to explain economic phenomena. Theory can not be taught rapidly, and as most teachers feel it necessary to give a rather complete outline, a three-hour course leaves time for little else, except some “practical problems.” But pure theory is dry pabulum for the immature student; moreover, it is likely to be worthless and even dangerous to him. Consequently, while the first course should have a stiff backbone of theory, it ought to be built up of concrete description of phenomena as they exist today, with enough economic history to show the conditions out of which the present organization has arisen. It should contain enough of the history of economics to show the relativity and transitoriness of present theories, and it should show the relation of economic conditions and theory to past and present problems of social betterment. As it is today, most teachers, like most textbooks, divide their time between theory and so called “practical problems,” and leave out the other things. They can scarcely do otherwise. A thoroughly satisfactory course in elementary economics must wait till college authorities are willing to reorganize their curriculum so as to give it the added time above suggested, and till teachers are willing to do the amount of hard work involved in such a course. The gain will be well worth the cost.

                  The student should learn first how the production of wealth depends on labor, natural resources, artificial capital, and business organization, studying the actual organization of agriculture, mining, manufacture, and commerce, and familiarizing himself with important facts in their development. He should study our fundamental economic institutions, private property, competition, and freedom, observing their history, their limitations, and their actual present operation, discovering their relativity and the necessity for their readjustment to changing conditions. On the basis of these fundamentals he should build up a theory of value and distribution that takes account both of economic history — especially since the industrial revolution — and of the history of economic theory. I should insist on the history, in order to guard against too implicit faith in our own theory.

                  The latter part of the course may well be devoted especially to problems of trade unions, trusts, money, tariff, and the like, and schemes of economic reform, like cooperation, the single tax, and socialism. I would not fundamentally change the elementary economics course, but I would enrich and vivify it by giving the student a mass of concrete illustrative material, contemporary and historical, such as will make theory real to him. The work thus becomes dynamic, and always looks forward to the process of social adjustment in which we desire the student to take intelligent part. One thus trained ought not to become either an unintelligent reactionary, a visionary reformer, or a fire-eating revolutionary.

                  It is difficult to discuss separately the matter and the manner of the elementary course. I shall, therefore, turn directly to the question of how it should be presented. Most teachers use one of four methods: (1) Textbook; (2) lecture; (3) syllabus; (4) library work. Each method has its own disadvantages. Textbooks in general have a singular lack of emphasis. Most students do not distinguish the essential from the unessential, the terminology being new and the whole treatment more or less abstract. Of the ordinary evils of slavery to a text I need not speak. In a lecture course most undergraduates do no work. If a syllabus is used, most of the difficulties of the text are encountered, but with two or three books instead of one. Without unlimited library funds, library reading as a basis for class discussion is impossible. A hundred students are always wanting to get hold of half a dozen books. Most teachers, therefore, come back to a combination of textbook and lecture, with more or less effort at supplementary library work, — not a bad solution, though by no means an ideal one.

                  The root difficulty is to get into the hands of all the students concrete material that will serve as the basis for intelligent and informed discussion. Our students do not know the facts of economic life. Of late some books are beginning to appear that try to meet this need. A critic has said, with a good deal of truth, that if one knows no economics these books are useless, because they do not contain enough; and if he does know some economics they are useless, because he already knows all they contain. None the less I believe that the solution of our present difficulty is to be found in putting into the hands of students a large book, perhaps running to two or three volumes, consisting of well-selected studies of different phases of contemporary economic activity, selections from economic history, and the history of economics, and studies of pending problems in economic and social readjustment. The difficulty of keeping such a book up to date I fully recognize. Such a work could be to a considerable extent compiled from standard literature, but to meet the need it would also have to include considerable amounts of new descriptive matter. For example, in the study of value I would have a section showing the conditions of wheat production in the United States, Argentina, India, and Russia; the way in which the grain gets to market, where it is sold, and what influences determine its price; together with a sketch of the course of wheat prices during the nineteenth century. The question of value would thus immediately be tied up in the student’s mind not only with some vague formula of marginal utility, but with actual conditions of distribution of population, fertility of land, the consuming habits of the people, the use of machinery and scientific methods in agriculture, soil conservation, transportation, speculation, — the real influences that our formulas fail to suggest. By the use of a good textbook the student can at the same time learn as much of the technical jargon as is thought desirable, — but with this difference, that it will now have some meaning for him. After wheat I should treat some monopolistic commodity, such as kerosene or anthracite coal, bringing out similarities and differences as compared with wheat. The purpose of this reading or “source” book would be, not to furnish an inductive basis for elementary economics, for I doubt the possibility of teaching it inductively, but to give concrete illustrative material in which the student may examine actively at work every important principle laid down in text or lecture. He can thus be stimulated to study his own experience and employ his own observation and research in determining the truth or falsity of the hypotheses out of which economic theory is built up. According to this plan the teacher may lecture occasionally, but the student will do the work, because he will have something to work on. He will not be required to perform the impossible feat of grinding out scientific explanations in vacuo, which is about what we ask of him in his ignorance now. Description without explanation is empty; explanation without description, futile; description and explanation combined train the scientific thinker.

                  Given then a sourcebook such as has been suggested and a reasonably satisfactory text, the task of the teacher in the elementary course becomes fairly simple. It is summed up in two words — interest and drill. With proper equipment there is little excuse for failure to interest college students in economics, but interest is not enough; it needs to be combined with healthy compulsion. Considerable though their interest be, most elementary students, like other people, have no inclination to overwork. They need close supervision. To make this possible in large classes without entailing prohibitive work on the teacher, assignments of required material must be standardized, so that students can be handled in groups. The better ones can easily be grouped by themselves for special work in addition to that required of the ordinary ones. The better students are neglected by most teachers at present, their efforts being centered on the group of mediocrities who set the suggested reading book might well contain all the material the ordinary student could be expected to use. Then, instead of wasting the time of the whole class with assignments of books they will never read, the teacher could confine such recommendations to the special groups that will actually use them. Lacking such a sourcebook the standardizing of assignments and grouping of students are none the less desirable.

                  Into the technique of the introductory course I shall go no further. The constant effort must be to make the student think clearly, thoroughly, and broadly, and to express his thought simply, clearly, and directly. To this end I rely chiefly on constant classroom discussion of assigned reading. In many ways it is less valuable, however, than the written report, the topical investigation, the collection of material from newspapers, magazines, and public documents, the specific question for written answer and the written examination. All these methods unfortunately devolve a great amount of work on the teacher, and unless he can group students such methods become almost impossible as classes grow in size.

                  Advanced courses present a less difficult problem than the introductory one. The smaller number of students and their more select character, as well as the more specialized character of advanced work, which usually deals with some one part of the field, such as the labor problem, socialism, or money, make it possible to adopt university methods. The students can be thrown largely on their own resources and held responsible only for results. They can be trained to make careful and somewhat extended studies of special topics, and class work can be based to an extent on such studies, though it is fatal to take much time in having students present, often very badly, the results of immature thinking. I am of the opinion that these advanced courses, like the elementary one, would profit by being “fattened.” If it is thought impracticable for a student to give a third of his time to such a study, let him give at least a quarter. Let us have done with the leisurely two-hour undergraduate course, where the student leaves the classroom, say on Wednesday morning, with the pleasing consciousness that economics need trouble him no more till the next week. Let us cut down the number of courses and make serious business of those we do give. Too many college teachers are trying to do for their students what only the university can do.

                  In introductory and advanced work alike, one puzzling question is always presenting itself. What is to be the attitude of the college teacher of economics toward the great economic and political issues that divide classes and parties? He must discuss them, for they are the very questions that give interest to his subject, and on which its conclusions may be expected to throw light. Moreover, he must have opinions about them. A man who has no positive ideas about trusts and trade unions, a central bank, municipal ownership, conservation, and socialism, and who would therefore confine his teaching to a mere “scientific” statement of facts about them, — such a man has not red blood enough to teach economics to undergraduates. The economics teacher ought to have useful opinions if any one has. What shall he do with them?

                  Probably few men of scientific temper and honest disposition consider themselves justified in using their position as undergraduate teachers to play the propagandist for mere opinions, however firmly they may hold them. The classroom is no place for propaganda. Suppose, for example, that at the present juncture one believes in a central bank, — may he urge that view in his classroom? Certainly not, however popular it may happen to be with his trustees. As a scientist he ought to point out the scientific reasons for his opinion, and as a man of affairs he ought, if he desires, to take part in practical movements looking toward the realization of the end he believes wise — and this equally, whether the end desired is a central bank or a cooperative commonwealth. Such freedom is fundamental to having honest men in college and university. But as a teacher of immature students, the economist finds himself under obligation not to impose his views on minds more or less incapable of resistance. He will not wish to convert his students to an opinion that will be held more or less as a prejudice.

                  Two courses, then, are open to him. Either he may keep his opinions to himself, trying to present fairly the arguments on both sides and leaving the students to form their own conclusions; or, he may frankly state his own judgment, giving the reasons which lead him to his conclusion and the arguments on the other side. The first course in my judgment is unfortunate for two reasons: first, because we do not wish to create a race of civic jellyfishes. The spectacle of an economist out of whom one can not get a positive conclusion on any live subject is, to say the least, not an inspiring example for students whom we desire to have form the habit of reaching sane decisions. Secondly, any man, no matter how fair minded, will find it hard not to present more convincingly the arguments he believes than those he doubts. Hence, in taking up any disputed topic, I tell a class in advance what is my own conclusion, thus giving them, so far as possible, the opportunity to discount the element due to the personal equation. Students and teacher thus stand on a footing of mutual understanding that seems to me conducive to mutual respect and intelligent discussion. The teacher can not help imposing his ideas on his students to some extent, but he can, at any rate, avoid foisting off on them opinions that they absorb from him unconsciously, because they do not know that he holds them. But, after all, perhaps the particular method of dealing with this problem is less important than the spirit in which it is approached. To realize that college boys and girls are generally young and easily impressed, and that propaganda of disputed social policies on which scientific opinion is not united, is at the farthest remove from the teaching of science — to have this consciousness is the great requirement for dealing wisely and fairly in this matter with undergraduates.

                  A little the same thing may be said concerning the general problem of method. To see the fundamental importance of economic relations, to think clearly and systematically, to put things simply and directly, to be filled with enthusiasm for a better social order, — these are the characteristics that will enable the real teacher to touch his students with the live coal off the altar. None the less a method capable of general use needs to be developed as a pedagogical tool, serving the interests at once of sound scholarship, free science, efficient citizenship, and sane social progress.

Source: Educational Review, Vol. XL (October, 1910), pp. 239-249.

Image Source: Faculty portrait of Henry Raymond Mussey in the Barnard College Yearbook, The Mortarboard 1911.

Categories
Exam Questions Harvard Principles

Harvard. Enrollments, staffing, exams for principles of economics. Taussig, Bullock, Andrew. 1906-1907

It is now time to begin posting transcriptions of course material for the Harvard academic year 1906-07. Sometimes, even for the curator of Economics in the Rear-view Mirror, this becomes a tedious task. Still, the opportunity to assemble a long time series of economics exams into searchable text for one of the leading economics departments has the virtue of being steady work. 

In the beginning… there is the undergraduate principles of economics course and that is the subject of this post. Subsequent posts more or less follow the course numbering used at the time by Harvard.

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Taussig explains the course structure

In a letter Aug 8, 1906 to E.R.A. Seligman at Columbia describing how Economics 1 was taught we learn that Frank Taussig gave the first semester lectures and his younger colleagues, Charles J. Bullock and A. Piatt Andrew split the second semester’s lectures between themselves. The textbooks used in the course were “Mill, Walker, and Seager.” Taussig also gave himself credit for introducing the course structure of having a common set of lectures and small-section work for discussion and exercises.

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Course Enrollment
1906-07

Economics 1. Professor [Frank William] Taussig and Asst. Professors [Charles Jesse] Bullock and [Abram Piatt] Andrew, assisted by Messrs [Selden Osgood] Martin, [Frank Richardson] Mason, G. R. [George Randall] Lewis, [Charles Phillips] Huse, and [Arthur Norman] Holcombe. — Principles of Economics.

Total 392: 1 Graduate, 15 Seniors, 43 Juniors, 252 Sophomores, 50 Freshmen, 31 Others.

Source: Harvard University. Report of the President of Harvard College, 1906-1907, p. 70.

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ECONOMICS 1
Mid-year Examination, 1906-07

Arrange your answers strictly in the order of the questions.

  1. Explain briefly what is meant by, — free goods; public goods; utility; marginal utility; productive labor.
  2. Explain the relation between, — the rate of interest; the selling price of land; the capitalization of monopolies; vested rights.
  3. What is meant by urban site rent? Does such rent differ from the rent of agricultural land? If so, in what essentials? If not, why not?
  4. Are business profits a return different in kind from wages, according to Mill? Seager? the instructor in the course?
  5. Is a high birth-rate to be regarded with anxiety? a low birth-rate? a high death-rate? a low death-rate? State (in round numbers per 1000 of population) what you would regard as high and low rates.
  6. Would you expect the price of a commodity to fall if its cost of production were lowered? If so, under what conditions? If not, why not?
    Would you expect the cost of producing a commodity to be lowered if its price fell? If so, under what conditions? If not, why not?
  7. Wherein had immigration into the United States during the decade just passed differed from immigration in earlier times; and what effect has recent immigration had (a) on the general rate of wages, (b) on wages in particular occupations?
  8. Explain the connection between, — collective bargaining; the closed shop; the open union.
  9. Suppose socialism, in the form proposed by Fourier, were adopted: how would wages, rent, interest, business profits, be affected? What if socialism, as outlined by modern writers, were adopted?

Source: Harvard University Archives. Harvard University. Mid-year Examinations, 1852-1943. Box 7, Bound Volume: Examination Papers, Mid-Years 1906-07.

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ECONOMICS 1
Year-end Examination, 1905-06

I.
Answer three questions.

  1. Does the value of a commodity depend on its utility? Does the price of a commodity depend on its value?
  2. Explain briefly what is meant by (a) the sweating system, (b) producers’ coöperation, (c) collective bargaining.
  3. Suppose a great increase in the supply of (a) gold, (b) silver, (c) wheat: would the values of these three articles be affected in the same way and in the same degree?
  4. What is the nature of the income received by (a) an owner of lodging house who lets rooms to students; (b) an owner of shares a “trust”; (c) an author receiving royalty on a copy-righted book; (d) a mine owner receiving a royalty (so much per ton) on minerals extracted from his mine.

II.
Answer three questions.

  1. Describe the various forms of credit which serve as means of exchange. Does their existence afford any disproof of the “quantity theory”? Explain why or why not.
  2. If there were no legal restrictions, would anything tend to prevent an over-expansion (a) of deposits, (b) of notes?
    If the present legal restrictions on note issue were abolished, what substitutes would you suggest?
  3. The imports of the United States from Brazil permanently exceed our exports to that country. What movements of specie between these countries are involved? The total exports of merchandise from the United States permanently exceed its imports. What movements of specie to or from this country are involved?
  4. Given mint par with England 4.86 2/3, France 5.18, Germany 0.952. What conditions with regard to American trade are indicated by the following quotations of exchange in New York, 4.84, 5.20, 0.945? How ought these rates to stand if the American dollar were to fall to half its present gold value?

III.
Answer three questions.

  1. According: to the principles laid down by Adam Smith and Mill, what changes should be made in the system of taxation employed by our national government?
  2. Compare the history of the income tax in the United States with the history of the tax in two European countries.
  3. What are the principal arguments for and against the proposal to levy progressive income taxes in order to prevent “undue” concentration of wealth? What are the arguments for and against using progressive inheritance taxes for the same purpose?
  4. Should a national debt be extinguished? Should municipal debts be extinguished? (In each case state fully the reasons for your answer.)

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1915. Box 8, Bound vol. Examination Papers 1906-07; Papers Set for Final Examinations in History, Government, Economics,…,Music in Harvard College (June, 1907), pp. 24-25.

Image Source: Frank W. Taussig in the Harvard Class Album, 1906. Colorized by Economics in the Rear-view Mirror.

Categories
Exam Questions Harvard Principles

Harvard. Principles of Economics Exam. Taussig et al., 1905-1906

Over the next couple of weeks Economics in the Rear-view Mirror will be posting the printed economics course exams from Harvard for the academic year 1905-06.  Economics in the Rear-View Mirror has already transcribed and posted nearly every economics exam at Harvard University up to this year. You will find links to them in the Catalogue of Artifacts, then use page search for, e.g.,”Exam” to be awed if not shocked by the sheer quantity of material available to you.

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Course Enrollment

Economics 1. Professor [Frank William] Taussig and Asst. Professor [Abram Piatt] Andrew, assisted by Messrs. [Silas Wilder] Howland, [Chester Whitney] Wright, [Seldon Osgood] Martin, [William Hyde] Price, [Frank Richardson] Mason, and [Stuart] Daggett. — Principles of Economics.

Total 470: 1 Graduate, 9 Seniors, 87 Juniors, 266 Sophomores, 63 Freshmen, 44 Others.

Source: Harvard University. Report of the President of Harvard College, 1905-1906, p. 72.

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ECONOMICS 1
Mid-year Examination, 1905-06

Arrange your answers strictly in the order of the questions.
Answer nine questions, five from Group I, four from Group II.

Group I

  1. Which of the following would you class as capital:—
    1. stocks of goods in retailers’ hands;
    2. a theatre:
    3. the skill, acquired through training and education, of highly efficient workmen;
    4. agricultural land permanently improved by drainage, embankments and the like.
  2. Explain concisely,
    1. the law of diminishing returns;
    2. intensive and extensive margin of cultivation;
    3. marginal utility.
  3. Suppose all agricultural land to be equally fertile and equally distant from the market; suppose all to be under cultivation: would there be rent? If so, why and where? if not, why not?
  4. Explain in what way the value of monopolized commodities is influenced on the one hand by cost of production, on the other hand by marginal utility.
  5. Explain in what way the value of commodities produced at joint cost is influenced on the one hand by cost of production, on the other hand by marginal utility.
  6. State two different ways in which expense of education and training affects variations of wages in different occupations.

Group II

  1. “The extra gains which any producer or dealer obtains through superior talents for business, or superior business arrangements, are very much of a similar kind [to rent]. . . . All advantages, in fact, which one competitor has over another, whether natural or acquired, whether personal or the result of social arrangements, bring the commodity, so far, into the Third Class, and assimilate the possessor of the advantage to a receiver of rent.” —Mill.
    Explain what is the “third class” of commodities here referred to by Mill; wherein “personal” advantages differ from those which are “the result of social arrangements”; and how far the general doctrine set forth in this extract is found also in Walker and in Seager.
  2. State concisely the residual theory of distribution, as set forth by Walker.
  3. Suppose the number of laborers to increase greatly, the other factors in production (capital, land) remaining unchanged: what changes in wages would ensue, and in what manner would they be brought about, according to Mill? Walker? Seager?
  4. Explain concisely,
    1. the capitalization of rent;
    2. the capitalization of monopoly profits;
    3. the statement that the rate of interest determines the value of land and securities;
    4. innocent investors and acquired rights.
  5. A corporation organized to do a mercantile business buys an expensive city site, erects a building thereon, carries on the operations of buying and selling, and in due time distributes dividends among its stockholders. What is the nature of the return received by the stockholders?

Source: Harvard University Archives. Harvard University. Mid-year Examinations, 1852-1943. Box 7, Bound Volume: Examination Papers, Mid-Years 1905-06.

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ECONOMICS 1
Year-end Examination, 1905-06

Omit one question from each group.

I.

  1. Define capital, and mention two articles of wealth which are always capital, two which never are, and two which sometimes are and sometimes are not.
  2. Under what conditions would there be no economic rent?
  3. Explain briefly the salient influences which will determine the value (1) at any given moment, (2) in the long run, of the following:
    1. an uncopyrighted book,
    2. a copyrighted book,
    3. an ounce of gold.
  4. What are the limits to the price-fixing and profit-earning powers of monopolies? Are there any other conditions which will tend to check the indefinite growth of combinations?

II.

  1. Is it true of all commodities that changes in supply affect their value proportionally? Is it true of the commodity money? If in your opinion there is any difference, explain it.
  2. Can a commodity change its value without changing its price? Can it change its price without changing its value? Suppose the commodity were gold bullion, would your answer vary?
  3. Suppose an increase in the volume of our currency, due to a new issue of silver, what would be the effect upon international trade? Would this effect be lasting? Would your answer depend at all upon the condition of our currency at the time the increase occurred?
  4. If the merchandise imports from England to the United States equalled the exports from the United States to England (a) what would be the state of exchange on London? (b) Would there be any greater advantage to either of the countries engaged in trade?

III.

  1. Would a tariff “for revenue only” differ from a protective tariff, the product of which is entirely devoted to revenue? Has either any advantage over the other?
  2. “A man is of all sorts of luggage the most difficult to be transported.” What is the bearing of this fact upon the theory of international trade?
  3. (a) How are loans affected when the reserve limit (as established either by law or custom) is reached in England, Germany, and in the United States?
    (b) Show whether a system of “combined reserves” is needed in France, England, or Germany.
  4. Arrange the following items in their proper order as they would appear in the statement of a national bank. What criticisms would a bank examiner make? Would these criticisms vary if the bank were situated in New York, Boston, or the town of Lexington?
Loans,

360 thousands of dollars

Capital,

50      “                “       “

Reserve,

50      “                “       “

Real estate,

28      “                “       “

Deposits,

300    “                “       “

Undivided profits,

3        “                “       “

Notes,

115    “                “       “

Other assets,

20      “                “       “

Bonds and stocks,

40      “                “       “

Surplus,

30      “                “       “

Source: Harvard University Archives. Harvard University, Examination Papers 1873-1915. Box 8, Bound volume: Examination Papers, 1906-07Papers Set for Final Examinations in History, Government, Economics,…,Music in Harvard College (June, 1906), pp. 26-27.

Image Source: Portrait of Professor Frank W. Taussig in the Harvard Class Album 1906.

Categories
Exam Questions Harvard Principles

Harvard. Enrollment and exams for Outlines of Economics. Taussig et al., 1904-1905

From the final exams for the two semester introductory economics course run by Frank Taussig and A. Piatt Andrew in 1904-05 we see (among other things) that John Stuart Mill provided the backbone of theory and that there was room for a compare and contrast question regarding a liberal market economy vs a socialist economy.

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Course Enrollment

Economics 1. Professor [Frank W.] Taussig, Asst. Professor [Abram Piatt] Andrew, and Messrs. [Vanderveer] Custis, [James Alfred] Field, [Silas Wilder] Howland, [Selden Osgood] Martin, and [Chester Whitney] Wright. — Outlines of Economics.

Total 438: 10 Seniors, 84 Juniors, 232 Sophomores, 54 Freshmen, 58 Others.

Source: Harvard University. Report of the President of Harvard College, 1904-1905, p. 74.

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ECONOMICS 1
Mid-year Examination, 1904-05

One question in each group may be omitted.
Arrange your answers strictly in the order of the questions
Give your reasons in all cases.

I

  1. Which among the following would you consider (1) “productive laborers,” (2) otherwise useful to society: actors, manufacturers of gambling implements, stock-brokers, landlords receiving and spending the rents of land.
  2. It has been laid down that,—
    Capital is distinguished from non-capital by its nature, — it consists of machinery, materials, and other apparatus for production;
    Capital is distinguished from non-capital by the intention of the owner in dealing with his wealth;
    Capital, though the result of saving, is yet continually consumed.
    Can you reconcile these propositions? If not, which do you consider sound?
  3. “The laws and conditions of the production of wealth partake of the character of physical truths.” Is this true of the law stating the conditions under which the accumulation of capital takes place? of that stating the conditions under which production upon land takes place?
  4. Define briefly: value in use, value in exchange, utility, marginal utility, margin of cultivation, consumer’s rent.
  5. Can a person having a monopoly of a given commodity control its price at will? If so, how? If not, why not?
  6. “An individual speculator cannot gain by a rise in price of his own creating . . . when there is neither at the time nor afterwards any cause for a rise of prices except his own proceedings.”
    On what reasoning does this statement of Mill’s rest? Does the practice of dealings for future delivery (“futures”) affect the reasoning.

II

  1. What is the difference between a wages-fund and a wages-flow? Which seems to you the better mode of describing the influences that act on the general rate of wages?
  2. “The expectations of profit, therefore, in different employments, cannot long continue very different: they tend to a common average.”
    “It is true that, to persons with the same amount of original means, there is more chance of making a large fortune in some employments than in others.”
    “Gross profit varies greatly from individual to individual, and can scarcely be in any two cases the same.”
    Can these statements of Mill’s be reconciled?
  3. Is the return from capital sunk in the soil to be regarded as rent or interest? Is the return from urban real estate to be regarded as rent or interest? Is the return on corporate securities (stocks and bonds) to be regarded as rent or interest?
  4. How will a rise in the rate of interest affect the selling value of land? that of securities yielding a fixed income?
  5. “But it is impossible for anyone to study political economy, even as at present taught, or to think at all upon the production and distribution of wealth, without seeing that property in land differs essentially from property in things of human production, and that it has no warrant in abstract justice.” Henry George.
    Do you think this statement true in view of what you have learned in this course? Consider both your reading and the lectures.
  6. What would become of interest, rent, business profits, in a socialist state? what if there were an all-embracing régime of coöperative production?

Source: Harvard University Archives. Harvard University. Mid-year Examinations, 1852-1943. Box 7, Bound Volume: Examination Papers, Mid-Years 1904-05.

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ECONOMICS 1
Year-end Examination, 1904-05

Omit one question from each group.

I

  1. What is meant by the equilibrium of demand and supply? How is it secured?
  2. Suppose there were a general rise in wages: could capitalists, by charging higher prices for their goods, prevent profits from falling?
    Suppose a rise of wages in a particular trade: could the capitalists in that trade, by charging higher prices, keep their profits from falling?
  3. Under what head — wages, rent, interest, profits — would you class the remuneration of (1) an apothecary; (2) a city merchant who owns the building in which he carries on his business; (3) an author who receives copyright payments on books which he has written; (4) a stockholder in a company which owns a lucrative patent?
  4. Is land capital? Are buildings capital? Are the skill and capacity of a workman — such as a trained engineer or a great inventor — to be regarded as capital?

II

  1. What would be the effect on the price of beef if a high protective tariff were levied on the import of hides?
  2. Which of the economic advantages and disadvantages of combination, in the broad sense, result from (a) pooling, (b) merger in a single corporation, (c) monopoly?
  3. President Roosevelt in a recent message said that our tariff “duties must never be reduced below the point that will cover the difference between the labor cost here and abroad.” Discuss this statement.
  4. Suppose that a country which manufactures only enough to supply half the home market, and which has a large export trade in wheat, imposes a uniform import duty of 50% on all commodities. What will be the effect on the nominal and the real wages of agricultural laborers, absolutely, and as compared with wages in manufacturing industries?

III

  1. How do you explain the fact that there is less than 1/10 as much silver in a dime as in a silver dollar? Is there any reason why this should be so?
  2. Explain briefly:—

(a) Deposit.
(b) Suffolk Bank system.
(c) Clearing House certificate.
(d) Post-note.
(e) Discount.
(f) Reserve city.
(g) Central reserve city.
(h) Asset currency.

  1. Secretary Shaw has said “Without claiming that the national banking act is perfect or that our currency system is free from objection I think that the world joins us in the verdict that it is the best system known to man.”
    Discuss this statement, comparing the American system as regards security and elasticity with those of England and Germany.
  2. If a national bank examiner should discover the following to be the account of a bank in Boston to what would he object:
Capital 200,000 Loans 733,000
Surplus 24,000 U.S. Bonds 75,000
Undivided profits 43,000 Other assets 42,000
Notes 78,000 Deposits in U.S. Treas. 3,500
Deposits 745,000 Deposits in other banks 150,000
Clearing House certificate 14,000
Coin & legal tender notes 72,500
1,090,000 1,090,000

Would his objections differ at all if the bank were located in Cambridge?

Source: Harvard University Archives. Harvard University, Examination Papers 1873-1915. Box 7, Bound volume: Examination Papers, 1904-05;  Papers Set for Final Examinations in History, Government, Economics,…,Music in Harvard College (June, 1905), pp. 21-23.

Image Sources:  Frank W. Taussig (Original black and white image from of Frank William Taussig from a cabinet card photograph, 1895, at the Harvard University Archives HUP); Abram Piatt Andrews (Picture from ca. 1909 used in a magazine article about Andrew’s appointment to the directorship of the U. S. Mint. Hoover Institution Archives. A. Piatt Andrew Papers, Box 51). Images colorized by Economics in the Rear-view Mirror.

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Exam Questions Harvard Principles Undergraduate

Harvard. Exam questions for Principles of Economics. Taussig and Andrew, 1903-1904

After the longest break from posting since I began this blog almost eight years ago, I now return to regular posting for most of the rest of this month (May 2023).

We resume our slow march through the economics exams at Harvard in the first decade of the 20th century with the semester examinations for the undergraduate introductory course in economics for the academic year 1903-04. The division of labor between A. P. Andrew and Frank Taussig appears to have been Taussig being responsible for the first semester with his junior partner Andrew taking over for the second semester. This would be consistent with the fact  that the year-end examination was not included in Taussig’s personal scrapbook of course examinations [Harvard University Archives. Prof. F. W. Taussig, Examination Papers in Economics 1882-1935  (Scrapbook)]

___________________________

Course Enrollment, 1903-04

Economics 1. Professor Taussig, Asst. Professor Andrew, and five assistants. — Outlines of Economics.

Total 529: 1 Graduate, 15 Seniors, 108 Juniors, 279 Sophomores, 72 Freshmen, 54 Others.

Source: Harvard University. Report of the President of Harvard College, 1903-1904, p. 66.

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Economics 1
Mid-Year Examination. 1903-04

Arrange your answers strictly in the order of the questions. Answer nine questions, and give your reasons for all answers.

  1. Is it advantageous to laborers, temporarily or permanently, that there should be (1) large government expenditures for military purposes; (2) large government expenditures for improvements in transportation; (3) luxurious expenditure by the rich; (4) savings by the rich? (You are free to discuss these separately, or as one general question.)
  2. Which of the following are productive laborers (1) according to Mill’s distinction, (2) in your own opinion:—

an actor;
a grain merchant;
one who engages in “commercial speculation”,
one who engages in “industrial speculation”;
one who engages in stock speculation.

  1. Will the population of a country be able to increase more rapidly when there is immigration than when there is not? Will it probably increase more rapidly?
  2. Suppose the variations in the fertility of land to be offset precisely by disadvantage in situation — the more distant land being the more fertile, the nearer land the less fertile — would there be rent? Would your answer be the same or different, according as you assume the whole of the land to be under cultivation, or some parts of it to be not yet in use?
  3. The significance of the principle of demand and supply, as regards (1) perishable commodities, (2) durable commodities, (3) monopolized commodities, — wherein different, wherein the same?
  4. How far is the proposition that the value of commodities conforms to their cost of production affected by (1) the varying rent of land; (2) the use of fixed capital (plant) on a great scale; (3) the growth of combinations?
  5. Is there a tendency to equality in the return to capital? in net profits (“business profits”)? in gross profits?
  6. What are the advantages and disadvantages of the regulation of combinations and monopolies by (1) limitations of profits, (2) fixing of prices charged to the public, (3) enforcement of farsighted management?
  7. Suppose all education and training to be gratuitous, and all obstacles to the free choice of occupations removed: would there be differences of wages? If so, of what sort? If not, why not?
  8. How do you conceive the remuneration for labor to be determined in a socialistic community? Wherein is the underlying principle different from that in existing society? What do you believe to be the essential merit or defect, or both, of the socialist principle?

Source:  Harvard University Archives. Harvard University, Mid-year examinations 1852-1943. Box 7, Bound volume: Examination Papers, Mid-Years, 1903-04.

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Economics 1
Year-End Examination. 1903-04

Write answers strictly in the order of the questions.
Omit one question from each group.

I
  1. Differences of wages are sometimes due to the presence of competition, sometimes to its absence. Give examples of each.
  2. What factors tend to prevent the rate of interest from an excessive rise? from an excessive fall?
  3. What would be the effect upon the wealth of a community
    1. if landlords gave up all claims to rent?
    2. if all production took place upon the margin of cultivation?
    3. if the price of all agricultural produce were legally fixed at the average cost of production?
  4. What influences govern the value on the New York market of
    1. coffee?
    2. structural steel?
    3. hides?
II
  1. Under normal conditions in the United States the par of exchange on London is $4.866, and the value of 23.2 grains of gold is $1.00. Suppose that the market price of gold was quoted at 5 cents per grain, and exchange on London was quoted at $5.65. What would this indicate
    1. as to the balance of trade?
    2. as to the character of the currency?
  2. President Lincoln is reported to have said: “When we buy a ton of steel rails abroad, we get the rails and the foreigner gets the money; but when we buy a ton of steel rails produced at home, we get both the rails and the money.”
    Give your opinion of this statement as an argument for protection.
  3. “The fact that the greenbacks have circulated at par for more than a quarter of a century is a strong guarantee that their retention in limited amount, always promptly redeemable, has not proved a mistake.”
    State briefly the history of the greenbacks, and give your opinion of this statement with reasons.
  4. “They also urge — and this is in some respects their strongest argument — that a slowly depreciating currency is better than a slowly appreciating one.” — Hadley.
    Explain and criticise, stating the effect of a depreciating standard upon each of the four great shares in distribution.

III

  1. Given

Capital, $100.000;
Loans, $250.000;
Deposits, $240.000.

Complete and balance the account to show the condition of a National bank in New York city with a reasonable circulation giving in detail the items concerning the issue and securing of notes. How would the items probably differ, if the bank was located it Yonkers?

  1. Does an increase in bank notes add (1) to the amount, and (2) to the elasticity of the total currency in
    1. the United States?
    2. England?
    3. France?
    4. Germany?
  2. In the present industrial combinations how far have the economies of large scale and centralized production resulted in benefit to consumers? Give reasons.
  3. What four changes in industrial conditions resultant from the introduction of the factory system have influenced the character of modern trade-unionism?

Source:  Harvard University Archives. Harvard University, Examination Papers 1873-1915. Box 7, Bound volume: Examination Papers, 1904-05; Papers Set for Final Examinations in History, Government, Economics, … in Harvard College, June 1904, pp. 25-27.

Image Sources:  Frank W. Taussig (Original black and white image from of Frank William Taussig from a cabinet card photograph, 1895, at the Harvard University Archives HUP); Abram Piatt Andrews (Picture from ca. 1909 used in a magazine article about Andrew’s appointment to the directorship of the U. S. Mint. Hoover Institution Archives. A. Piatt Andrew Papers, Box 51). Images colorized by Economics in the Rear-view Mirror.