Category: Suggested Reading

 

From time to time, one stumbles across a complete syllabus that really deserves to be html-edited for inclusion as an artifact in the Economics in the Rear-View Mirror collection. Today’s post runs 33-pages in MS-Word for a course that covers economic policy concerns as taught in 1892 by the newly appointed professor at Cornell, Jeremiah Whipple Jenks (1856-1929). The published syllabus prepared for the University Extension Department of the University of the State of New York includes a bibliography, reading assignments and lecture notes.

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University of the State of New York
UNIVERSITY EXTENSION DEPARTMENT
Albany, N.Y.

Syllabus 1, Jan. 1892

Subject no. 330

PRACTICAL ECONOMIC QUESTIONS
By Prof. J. W. Jenks, Ph. D., Cornell University

Part I Reading list

LIST OF AUTHORITIES REFERRED TO
Not including periodicals

Adams, Henry Carter. Outlines of lectures on political economy. 85p. O. Ann Arbor. 1886. Sheehan, 50¢.

Andrews, Elisha Benjamin. Institutes of economics. 227p. D. Bost. 1889. Silver, Burdett & Co. $1.30.

Extremely concise and thorough in analysis.

Atkinson, Edward. Distribution of products; or, The mechanism and the metaphysics of exchange. 303p. D. N.Y. 1885. Putnam, $1.25.

Contents: What makes the rate of wages? What is a bank? The railway, the farmer and the public.

Baernreither, J. M. English associations of working-men; tr. by Alice Taylor. 15+473p. O. Lond. 1889. Sonnenschein, 15s.

A late survey.

Bowen, Francis. American political economy. New ed. D.  N.Y. 1885. Scribner, $2.50.

An excellent moderate statement of the protection doctrine.

Brentano, Lujo. Relation of labor to the law of today; tr. with an introd. by Porter Sherman. 300p.  D.  N.Y. 1891. Putnam, $1.75.

A late excellent book favoring trades unions.

Cairnes, John Elliot. Character and logical method of political economy. Ed. 2. 229p.  D.  N.Y. 1875. Harper, $1.50.

The best statement of method from the standpoint of the classical economists.

__________ Some leading principles of political economy newly expounded. 506p.  O.  N.Y. 1874. Harper, $2.50.

Specially valuable on wages.

Carey, Henry Charles. Manual of social science; condensed from Carey’s Principles of social science, by Kate McKean. Phil. H. C. Baird & Co. $2.25.

Carpenter, Edward. Civilization, its causes and cure. 156p.  D.  Lond. 1889. Sonnenschien, 75¢. (Social science ser. vol. 2)

A late strong work.

Clowes, W.L. “Black America.” N.Y. 1891. $1.50.

A late study by an English observer.

Cook, W.W. Trusts; the recent combinations in trade, their character, legality and mode of organization, and the rights, duties and liabilities of their managers and certificate holders. 63p.  S.  N.Y. 1888. L. K. Strouse & Co. pap. 50¢.

Cunningham, William. Growth of English industry and commerce during the early and middle ages. Ed. 2 enl. 15+626p.  O.  Lond. 1890. Macmillan, $5.

Dexter, Seymour. Treatise on cooperative savings and loan associations. 299p.  D.  N.Y. 1889. Appleton, $1.25.

A thoroughly practical manual giving New York statutes.

Dugdale, Richard. The Jukes; a study in crime, pauperism and heredity. Fourth ed. with introd. by W:  M.F. Round. 121p.  D.  N.Y. 1888. Putnam, $1.

A startling presentation of the effects of heredity.

Ellis, Havelock. The criminal. 8+337p.  D.  N.Y. 1890. Scribner, $1. (Contemporary science ser. no. 1)

Review of results thus far reached by students of criminal anthropology in Italy, France, Germany, England and the United States, with criticism.

Ely, Richard Theodore. Introduction to political economy. 358p.  O.  N.Y. 1889. Hunt & Eaton, $1.

__________ Problems of today; a discussion of protective tariffs, taxation and monopolies. 222p.  D.  N.Y. 1888. Crowell, $1.50.

__________ Labor movement in America. 373p.  D.  N.Y. 1886. Crowell, $1.50.

A history which includes the platforms of the principal labor organizations.

__________ & Finley, J. H. Taxation in American states and cities. 544p.  D.  N.Y. 1888. Crowell, $1.75.

Describes taxation as it is with suggestions for reform.

Farrer, Sir Thomas H. State in its relation to trade, II + 181p. D.  Lond. 1883. Macmillan, $1. (English citizen ser.)

Admirable.

Fawcett, Henry. Free trade and protection; an inquiry into the causes which have retarded the general adoption of free trade since its introduction into England. Ed. 6. 16+173p. D. Lond. 1888. Macmillan, $1.25.

American arguments for protection are specially considered.

George, Henry. Progress and poverty; an inquiry into the causes of industrial depressions and of the increase of want with increase of wealth: the remedy. 250p.  O.  N.Y. 1888. H: George & Co. pap. 35¢, cl. $1.

Gilman, Nicholas Paine. Profit sharing between employer and employé; a study in the evolution of the wages system. 460p. O.  Bost. 1889. Houghton, Mifflin & Co. $1.75.

The one comprehensive book on this subject.

Hadley, Arthur Twining. Railroad transportation; its history and laws. 269p.  D.  N.Y. 1885. Putnam, $1.50.

The standard book on this subject.

Howell, George. Conflicts of capital and labor, historically and economically considered. New ed. 64+536p.  D.  Lond. 1890. Macmillan, $2.50.

Treats of British trades unions from the standpoint of a trades unionist.

__________ Trades unionism, new and old. 15+235p. D.  Lond. 1891. Methuen, 75¢.

“Written in view of the later developments of trades unionism, with especial reference to what may be termed the new departure in the organization of labor.” — Pref.

Hudson, James F. Railways and the republic. 489p.  O.  N.Y. 1886. Harper, $2.

Suggests that railways be made public highways, rolling stock to be supplied by private enterprise. The author would prohibit pools.

Jevons, William Stanley. Money and the mechanism of exchange. 23+350p.  D.  N.Y. 1879. Appleton, $1.75.

Best popular book for laying a basis of the generally accepted doctrines.

__________ State in relation to labor. 166p.  D.  Lond. 1882. Macmillan, $1. (English citizen ser.)

Keynes, John Neville. Scope and method of political economy. 14+359p.  D.  Lond. 1891. Macmillan, $2.

The most complete statement of the nature and methods of political economy. An excellent work.

Laughlin, James Laurence. History of bimetallism in the United States. 258p. charts and tables,  O.  N.Y. 1885. Appleton, $2.25.

Exhaustive.

__________ Study of political economy. 153p.  S.  N.Y. 1885. Appleton, $1.

Brings out the value of economics in discipline.

List, Friedrich. National system of political economy; tr. by G. A. Matile with notes by Richelot and Colwell.  O.  Phil. 1856. Lippincott, $2.

Unfinished work, First of German protectionists.

McCulloch, Oscar. Tribe of Ishmael; a study in social degradation. Ed. 4. 8p.  O.  Indianapolis, 1891. Charity organization society, 50¢.

A brief but thorough study of heredity as a cause of pauperism; a popular lecture, with diagram.

Marshall, Alfred. Principles of economics, vol. I. 28+754p.  O.  Lond. 1890. Macmillan, $3.

The most important work in English since J. S. Mill. To be completed in a second volume.

Mill, John Stuart. Principles of political economy; abridged with critical, bibliographical and explanatory notes and a sketch of the history of political economy by J. L. Laughlin. 658p. maps and diagrams,  O.  N.Y. 1884. Appleton, $3.50.

Best abridgment of the chief modern English economist.

Morrison, William Douglas. Crime and its causes. 11+236p.  O.  Lond. 1891. Sonnenschien, 75¢. (Social science ser.)

A new thorough study.

Patten, Simon N. Premises of political economy; a reexamination of certain principles of economic science. 244p. D. Phil. 1885. Lippincott, $1.50.

A radical and suggestive piece of criticism. Emphasizes social causes.

Ricardo, David. Principles of political economy and taxation; ed. with introd. essay, notes and appendices by E.C.K. Gonner. 62+455p.  D.  Lond. 1891. Bell, $2. (Bohn’s economic lib.)

Rogers, James Edwin Thorold. Economic interpretation of (English) history. 547p.  O.  N.Y, 1888. Putnam, $3.

Showing the powerful influence economics have had in English history.

Roscher, Wilhelm. Principles of political economy. 2 v.  O. N.Y. 1878. Holt, $7.50.

Translation of the most popular German treatise.

Rylands, L.G. Crime, its causes and remedy. 264p. Lond. 1889. Unwin, 6s.

Science economic discussion.  D.  N.Y. 1886. 50¢.

Republished from papers contributed to Science, v. 7 & 8, by Adams, Ely, Hadley, &c.

Sidgwick, Henry. Principles of political economy. Ed. 2. 24+595p.  O.  Lond. 1887. Macmillan, $4.

A late thorough, suggestive work.

Smith, Richmond Mayo. Emigration and immigration. 316p.  D.  N.Y. 1890. Scribner, $1.50.

An historical and statistical survey. An able and suggestive book, much the best on the subject.

Spencer, Herbert. Principles of sociology. 2 v.  O.  N.Y. 1890. Appleton, $4.

vol. 1 Data and inductions of sociology; domestic institutions. 883p.
vol. 2 Ceremonial and political institutions. 667+26p.

Stebbins, Giles B. American protectionists’ manual. 192p.  D.  Chic. 1888. C.H. Kerr & Co. 75¢. pap. 40¢.

Contains many quotations from industrial witnesses, and comparative figures.

Sumner, William Graham. History of American currency; with chapters on the English bank restrictions and Austrian paper money. 390p.  D.  N.Y. 1878. Holt, $3.

Deals with facts more than with theories. Apx. contains in full English “Bullion report” of 1810.

Taussig, Frank William. Tariff history of the United States, 1789-1888. 269p.  D.  N.Y. 1888. Putnam, $1.25. (Questions of the day, no. 47)

Valuable record of facts. Author a tariff reformer. Best general history of our tariff.

Taylor, Sedley. Profit sharing between capital and labor. 13+170p.  D.  N.Y. 1886. Fitzgerald, pap. 15¢.

Thompson, Robert Ellis. Elements of political economy. 419p.  D.  Phil. 1882. Porter, $1.50.

Wagner, Adolf. Finanzwissenschaft. 3 v. Leipzig, 1883-90. C.P. Winter.

The most comprehensive work on taxation in any language. Uncompleted.

Walker, Francis Amasa. Land and its rent. 220p.  S.  Bost. 1883. Little, Brown & Co. 75¢.

The best American book on the subject from the conservative standpoint.

__________ Money. 550p.  O.  N.Y. 1878. Holt, $2.

The standard American treatise. States and impartially examines the various theories of money.

__________ Political economy. 537p.  O.  N.Y. 1887. Holt, $2. (American science ser. — Advanced course)

Specially valuable in its elucidations of the questions of land and wages.

__________ Wages question; a treatise on wages and the wages receiving class. 428p.  O.  N.Y. 1876. Holt, $2.

Discriminates real from nominal wages. Takes account of sentiment as affecting economic forces.

Winter, Alexander. New York state reformatory in Elmira; with a pref. by Havelock Ellis. 10+172p.  D.  Lond. 1891. Sonnenschein, 75¢. (Social science ser. vol. 19)

An excellent account of this best of all reformatories.

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Lecture 1

At the close of each lecture there will be a free conference on the subject of the lecture, at which members of the class may ask questions of the lecturer, and bring forward their own views.

To aid the students in securing accurate notes of the lectures, the lecturer will distribute at the close of each meeting a printed syllabus of the lecture of the evening, to which will be added a number of questions or exercises for written work. Answers to two or more of these may be sent by mail to the lecturer, so as to reach him not less than 48 hours before the succeeding lecture.

The special class, consisting of those that do the written work, will meet 45 minutes before the beginning of the regular lecture, to receive back papers, get special information regarding reading, have difficulties made clear, etc.

NATURE OF POLITICAL ECONOMY

1 Why do we study political economy?

Marshall. Principles of economics, vol. 1, ch. 1.
Laughlin. Study of political economy.
Ely. Political economy, pt 1, ch. 1-3.
Walker. Political economy, ch. 1.
Bowen. American political economy, ch. 1.

2 Nature and development of industrial society.

Marshall. Principles of economics, ch. 2-3.
Andrews. Institutes of economics; introduction.
Ely. Political economy, pt 1.
Cunningham. Growth of English industry and commerce.

3 Definition of political economy.

Marshall. Principles of economics, ch. 1.
Adams. Outlines of lectures on political economy, §14.
Walker. Political economy, ch. 1.
Roscher. Principles of political economy, vol. 1, ch. 3.

4 Method of economic study.

Keynes. Scope and method of political economy.
Science economic discussion.
Dunbar, C.F. Reaction in political economy (see Quar. jour. econ. 1:1-27).
Cairnes. Logical method of political economy.
Andrews. Institutes of economics, ch. 1.
Marshall. Principles of economics, ch. 4-8.
Walker. Political economy, ch. 1.
Adams. Outlines of lectures, pt 1-2.
Sidgwick. Principles of political economy, ch. 3.
Nasse, E. Economic movement in Germany (see Quar. jour. econ. 1:498-506.)

The books cited are all standard works and will be useful for nearly all the lectures. The bibliography is by no means complete but rather suggestive for those not familiar with the subjects treated. For those who read German, the works of Schönberg, Wagner and Cohn are recommended; for those who read French those of Cherbuliez, Courcelle-Seneuil and Garnier. The full title of the books is given only when the first reference is made. Later a short title is used.

It is not expected that each student will read all the references. Several have been suggested under each topic, in order that the student may use the one that is most convenient for him, and so far as possible they have been arranged in order of fitness for use of extension students. Each student should do as much reading as possible, and come to the lecture with some fairly defined opinion on each topic suggested, in order that he may take a more intelligent part in the discussions at the close of the lecture.

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Lecture 2

THE MONEY QUESTION

1 What is money? Its origin and nature.

Walker. Money, ch. 1-2.
Jevons. Money and the mechanism of exchange, ch. 1-5.
Carey, Social science (McKean’s abridgment), ch. 23.
Bowen. ch, 12.

2 Normal relation of government to money.

Andrews. §75.
Bowen. ch. 12.

3 Quantity of money needed.

Walker. Money, ch. 3.
Mill. Political economy (Laughlin’s ed.), bk. 3.

4 Territorial distribution of money.

Walker. Money, ch. 3.
_____. Political economy, ch. 3.

5 Single or double standard?

Laughlin. Bimetallism in U. S.
Taussig. Silver situation in the U. S. (see Quar. jour. econ. 4:291-315, Ap 90).
Silver situation in the U. S. (see Amer. econ. ass’n. publications, vol. 7, no. 1, Ja. 92.)
Jevons. Silver question (see Jour. soc. sci. 1879, no. 9, p. 14-20).
Nourse, B.F. Silver question (see Jour. soc. sci. 1879, no. 9, p. 21-43).
Sumner. History of American currency.

6 Free coinage of silver in the U.S. to-day.

Taussig. (As above under 5.)
Laughlin. Bimetallism in U.S.
Fairchild, G.S. U.S. and silver (see Forum, 11:550-58, Jl 90)
Coe, G.S. Why the silver law should be repealed (see Forum 12:611-13, Ja 92).

7 Inconvertible paper money.

Walker. Money, pt 2.
Rogers. Economic interpretation of history, ch. 10.

The standard works cited cover the whole subject. Many more articles in the current magazines can be found on the political phases of the question by consulting Poole’s Index to periodical literature and the later files of the periodicals.

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Lecture 3

THE RENT PROBLEM

1 Factors in production.

Marshall, bk 4-6.
Walker. Political economy, pt 2.
Andrews, pt 1.

2 Parties to the distribution of the product of industry.

Marshall, bk 7.
Walker. Political economy, pt 4, ch. 1.
Andrews, pt 1.

3 Origin of rent.

Ricardo. Political economy, ch. 2.
Walker. Political economy, pt 4, ch. 2.
Andrews. pt 4, ch. 2.

4 Law of rent. What fixes its amount?

Ricardo. ch. 2.
Sidgwick. bk 1, ch. 7.
Carey. (McKean’s abridgment) ch. 35.
Patten. Premises of political economy, ch. 1.
Andrews, pt 4, ch. 2.

5 Relation of rent to price of product; to wages.

Marshall, bk 6.
Walker. Political economy, pt 4, ch. 2.
Ricardo. Political economy, ch. 2.

6 Effect of social progress on rent.

Marshall, bk 7, ch. 13.
Carey, (McKean’s abridgment) ch. 35.

7 Henry George and land nationalization.

George. Progress and poverty.
Walker. Land and its rent.
Single tax debate (see Jour. soc. sci. 1890, no. 27, p. 1-124. George, Seligman and others).
Ely. Taxation in American states and cities, pt 3, ch. 4.
__________ Problems of to-day, ch. 25-26.
Consult also Poole’s Index and later files of political periodicals.

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Lecture 4

MONOPOLIES

1 Natural monopolies.

a. Gold, salt, etc.

Wagner. Finanzwissenschaft; — and other European writers on finance.
Ely. Problems of to-day, ch. 17-19.

b. Railroads, telegraphs.

James, E. J. Railway question (see Amer. econ. ass’n. Publications, vol. 2, no. 3).
Hadley. Railroad transportation.
Seligman. Railway tariffs and interstate commerce law (see Pol. sci. quar. 2: 223-64, 364-413).
Hudson. Railways and the republic.
Ely. Problems of to-day, ch. 22-23.

c. Municipal. Water, gas, street railways, etc.

Adams, H.C., and others. Relation of modern municipalities to quasi-public works, (see Amer. econ. ass’n. Publications, vol. 2, no. 6.)
James, E. J. Relation of modern municipality to the gas supply (see Amer. econ. ass’n. Publications, vol. 1, no. 2-3).
Bemis, E.W. Municipal ownership of gas in the United States, (see Amer. econ. ass’n. Publications, vol. 6, no. 4-5.)
Bulletin of U.S. census of 1891 on street railways.
Ely. Problems of to-day, ch. 20-21,

2 Capitalistic monopolies.

a. Trusts.

Cook. Trusts.
Reports of N.Y. senate, 1888; Congressional committee on manufactures, 1888; Canadian house of representatives, 1888.
Gunton. Economic and social aspect of trusts (see Pol. sci. quar. 3:385-408, S ‘88).
Jenks, J. W. Trusts in the United States (see Economic jour. 5:70-100, Mr. ‘92).
Dwight. Legality of trusts (see Pol. sci. quar. 3:592, D ‘88).

b. Corporations.

As above under a.

3 Advantages and disadvantages of great combinations of capital.

As above under 2.

4 Legislative action regarding monopolies.

James and Adams as above and references under 2a.
Swift, M. I. What shall be done with trusts (see Andover review, 10:109-26).
Bankers’ magazine (New York), October ‘88.
Consult Poole’s Index for many magazine articles.

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Lecture 5

THE WAGES QUESTION

1 Factors determining the rate of wages.

Walker. Wages question.
A full discussion of the whole subject. See also several articles by Walker, Clark and McVane in the last two volumes of the Quarterly journal of economics.
Sidgwick. Political economy, bk 2, ch. 8-12.
Atkinson. Distribution of products.

2 Highest and lowest limits of wages.

Walker. Wages question, ch. 14-16, 19.
Brentano. Relation of labor to the law of to-day, bk 2, ch. 7-8.
Andrews. Institutes of economics, pt 4, ch. 4.
Ricardo. Political economy, ch. 5.

3 Interest of society in the rate of wages.

Brentano. bk 2, ch. 12.
Journal of social science, 1891.
Andrews, pt 4, ch. 4.
Walker. Wages question and Political economy,
Ely. Labor movement.

4 Influence of trades unions on wages.

Journal of social science, 1891.
Sidgwick. bk 2, ch. 10.
Brentano. bk 2, ch. 6-8.
Ely. Labor movement.

5 Labor legislation.

Journal of social science, 1891.
Jevons. State in relation to labor.
Brentano, bk 2, ch. 9-10.
Howell. Conflicts of labor and capital, ch. 11.
Baernreither. English associations of workingmen, ch. 4.
Consult Poole’s Index for magazine articles.

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Lecture 6

COOPERATION AND PROFIT SHARING

1 Significance of cooperation.

Walker. Political economy, pt 6, §2.
Cairnes. Leading principles, ch. 5.
Howell. Conflicts of labor and capital, ch. 12.

2 Distributive cooperation.

Bemis, E.W. Cooperation in New England (see Amer. econ. ass’n. Publications, vol. 1 no. 5).
Warner, A.G. Three phases of cooperation in the west (see Amer. econ. ass’n. Publications, vol. 2, no. 1).
History of cooperation in the U. S. (in Johns Hopkins Univ. studies in hist, and pol. sci., vol. 6).

3 Productive cooperation.

History of cooperation in the U.S. (in J.H.U. studies in hist. and pol. sci. vol. 6).
Shaw, Albert. Cooperation in a western city (see Amer. econ. ass’n. Publications, vol. 1, no. 4).
Bemis, E.W. (As above under 2a.)
Howell. Conflicts of labor and capital, ch. 12.

a Building and loan associations

Dexter. Cooperative savings and loan associations.
Journal of social science, 1888, no. 25.

4 Profit-sharing. Its nature.

Gilman. Profit-sharing.
Taylor, Sedley. Profit-sharing.
Journal of social science, 1887, no. 23, p. 25-67.

a. Examples and methods.

Articles in Chicago Daily news, 1889.

Gilman. Profit-sharing.

5 Future of cooperation and profit-sharing; and adaptability for special industries.

Gilman, ch. 10.
Walker. Political economy, and other general works on economics.
Consult also Poole’s Index to periodical literature.

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Lecture 7

EMIGRATION AND IMMIGRATION

1 The good of society the standpoint of discussion.

Smith. Emigration and immigration. The best authority on the whole subject.
Smith, R.M. Control of immigration (see Pol. sci. quar. 3:46-77, 197-225, 409-24).
Schuyler, Eugene. Italian immigration into the U. S. (see Pol. sci. quar. 4:480-95).
Reports of the consular officers of the United States, 1885-1886.

2 History of immigration into the United States.

Liégeard, Armand. Immigration into the U. S. (see Statistical society. Journal, 47:496-516).
Census of the United States, 1850-90.
See also under 1.

3 Forces of assimilation.

Boyesen, H.H. Dangers of unrestricted immigration (see Forum, 3:532-42).
See also under 1.

4 Political effects of immigration.

Boyesen, H.H. (As above under 3).
Coxe, A.C. Government by aliens (see Forum 7:597-608).
Round, W.M.F. Immigration and crime (see Forum 8:428-40).
Altgeld, J.P. Immigrant’s answer (see Forum 8:684-96).
Bemis, E.W. Restriction of immigration (see Andover rev. 9: 251-64).
Munger, T.T. Immigration by passport (see Century 35: 791-99).
Powderly, T.V. A menacing irruption, (see North Amer. rev. 147:165-74).

5 Economic effects.

Powers, F.P. Occupations of immigrants (see Quar. jour. econ. 2:223-28).

In England.

Fox, S.N. Pauper invasion of foreigners (see Contemporary review, 53: 855-67).

In France.

Spectator, 61: 1350.
See also under 1 and 4.

6 Social effects.

See under 1, 4, 5.

7 Relation of the state to emigration and immigration.

See specially Smith, Emigration and immigration.
Many other reports and articles in reports of bureaus of labor statistics, reports of the Conference of Charities and Corrections, etc.

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Lecture 8

THE PROTECTIVE TARIFF

1 Duty of the state toward industry.

Adams, H: C. Relation of the state to industrial action, (Amer. econ. ass’n. Publications, vol. 1, no. 6.)
Science economic discussion.
Sidgwick. Political economy, bk 3, ch. 3-4.
Jevons. State in relation to labor.
Farrer. State in relation to trade.

2 A protective in distinction from a revenue tariff.

Fawcett. Free trade and protection, ch. 2.
Pulsford, Edward. An Australian lesson (see 19th century, 24:393-409).

3 On what classes of goods may a protective duty be levied?

See under 5.

4 Who pays the protective tax?

Bowen. American political economy, ch. 20.
Sidgwick. Political economy, bk 3, ch. 5.
Stebbins. American protectionists’ manual, ch. 6.

5 Development of natural facilities and of industries.

List. National system of political economy, bk 2.
Carey. (McKean’s abridgment.)
Thompson. Political economy.
Stebbins. American protectionists’ manual,

6 “Infant industries” argument.

Taussig. Tariff history of the United States.
Sidgwick. Political economy, bk 3, ch. 5.

7 How high should a protective tariff be and for how long continued?

See under 5 and 6.

8 Protective tariff and wages.

Gladstone, W.E. Free trade (see North Am. rev. 150:1-27).
Blaine, J.G. Protection (see North Am. rev. 150:27-54).
Powers, F.P. Australian tariff experiment (see Quar. jour. econ. 3:87-98).
Thompson. Political economy, §224.
Stebbins. Protectionists’ manual, ch. 10.

9 Protective tariff and politics.

Taussig. Tariff history of the United States.

a. Is Congress able properly to adjust duties? See Poole’s Index for magazine articles.
b. Tariff in elections. See 9a.

10 General conclusion.

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Lecture 9

THE RACE PROBLEM

1 Nature of the problem.

Bryce, James. Thoughts on the negro problem (see North Amer. rev. 152: 641-60, D 91). Excellent on the whole subject.
Cable, G.W. Freedman’s case in equity (see Century, 7:409-18).
Grady, H.W. In plain black and white; a reply to Mr Cable (see Century, 7:909-17).

2 Statement of historic facts.

Clowes, W.L. Black America.
Craighead, J.B. Future of the negro in the south (see Pop. sci. mo. 26:39-46).
Gannett, Henry. Are we to become africanized? (see Pop. sci. mo. 27:145-65).
Keating, J.M. 20 years of negro education (see Pop. sci. mo. 28: 24-37).’
See also under 1

3 Present social conditions.

Clowes, W.L. Black America.
Census reports of 1870, 1880, 1890, vol. 1 on Population.
Price, J.C. Does the negro seek social equality? (see Forum 10:556-64).
See also under 2.

4 Present political conditions.

Census reports as above.
Mayo, A.D. Progress of the negro (see Forum 10:335-45).
Tourgée, A.W. Right to vote (see Forum 9: 78-92).
North American review, vol. 147, Oct. 1888.
See also under 1 and 3.

5 Remedies proposed.

a. Intermarriage.

Rawlinson, George. Duties of higher toward lower races. (see Princeton rev., Nov. 1878, p. 804-47).
Gardiner, C.A. Race problem in the U. S. (see Jour. soc. sci. 1883, no. 18, p. 266-75).

b. Congressional interference to raise social or political standard.

Tourgée, A.W. (As above under 4.)
Morgan, J.T. Federal control of elections, (see Forum 10:23-36).
North Am. rev., vol. 147, Oct. ‘88.

c. Colonization.

Clowes, W.L. Black America.
Gilliam, E.W. African in the U. S. (see Pop. sci. mo. 22:433-44, F ‘83).

d. Education.

As under 2.
Keating, J.M. (As above under 2.)
Dudley, T.U. How shall we help the negro? (see Century, 8:273-80.)
Shaler, N.S. Negro problem (see Atlantic mo., 54:696-709).

6 Measures to recommend.

See Poole’s Index for other articles.

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Lecture 10

PRINCIPLES OF SOCIAL REFORM

1 Nature of society.

Spencer. Principles of sociology, pt 1, ch. 1-4, 27; pt 2, ch. 1-2.

2 What is a social evil?

Spencer. Sociology, pt 3, ch. 1-2.
Carpenter. Civilization, ch. 1, 4, 6,

3 Reform deals with individuals.

Morrison. Crime and its causes.
Rylands. Crime; its causes and remedy .
Winter. Elmira reformatory.

4 Heredity. How its influence may be modified.

Dugdale. The Jukes.
McCulloch. Tribe of Ishmael.
Ellis. The criminal.

5 Environment may be modified.

Spencer. Sociology, pt 1, ch. 2-4; pt 2, ch. 11; pt 5, ch. 5. Papers in penology published by Elmira reformatory.

a. For individuals.

Morrison. Crime and its causes.
Rylands. Crime, ch. 5.
Winter. Elmira reformatory.

b. By individuals for their own benefit.

See many short articles in the Summary, the paper published at the Elmira reformatory.
See also 5a.

6 Responsibility of individuals for social evils.

Ellis. The criminal.

7 Our duty regarding social evils.

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Part 2 Syllabus

Lecture 1

NATURE OF POLITICAL ECONOMY

1 Why we study political economy.

a. To learn how to do wisely our share in governing.

The economist knows what is desirable for the people along industrial lines; the statesman sees how much of this it is possible to obtain and how to -lead the people toward this attainment.

“The science of economics has to-day the important task of working directly for practical life; and on the other hand not only the statesman, but also the merchant, the manufacturer and the farmer are in duty bound to take notice of economic science, and to form their own independent judgments on the economic problems of the day, because almost daily they are compelled to give their opinions, and votes, in political and social life, on these most important economic questions.” — Conrad.

b. To aid in business life.

A business man has to deal with economic facts, but may be successful without being a trained economist. A driver on an electric car must know some principles of electricity, but need not be a scientific electrician. An economist can not know too much about business, for he has to do with business principles which are drawn from business facts.

c. To help us in social and home life, and keep us from mistakes.

“Whoever can teach the masses of people how to get five cents’ worth a day more comfort or force out of the food which each one consumes, will add to their productive power what would equal a thousand million dollars a year.” — Quoted in Andrews. How much of our so-called charity is cruelty! A great fire is rarely a social blessing, though it does make work. If the best goods are the cheapest, the most expensive may not be. We fail to realize fully our interdependence upon one another.

d. To gain interesting knowledge and valuable mental discipline.

2 Nature of industrial society.

Industrial society — the world of business — is a great social organism, a structure of interdependent parts, each working for all, and all for each. Consider how many people have contributed their efforts to produce the things that satisfy your needs for one day; where they live; in what ways they have worked; what their motives have been; why you have benefited by their work. There can be no society without this harmonious cooperation; no complete man outside of society. The organism is very complex; its study must be difficult.

3 Definition of political economy.

It is the task of political economy to find out the principles that guide this industrial organism in its working.

“Political economy, or economics, is the science of wealth.” “Political economy has to do with nothing but wealth.” — Walker.

“Political economy may be properly defined as the science of industrial society. Its purpose as an analytic science is to explain the industrial actions of men. Its purpose as a constructive science is to discover a scientific and rational basis for the formation and government of industrial society.” — Adams.

“Political economy, or economics, is a study of man’s actions in the ordinary business of life; it inquires how he gets his income and how he uses it.” — Marshall.

It seems wise to keep prominently in mind man in society as the standpoint for our investigations because (1) This standpoint calls special attention to the forces at work in society; and (2) This standpoint shows us best the proper relations of economic theory and practice, man’s actions, practice, often forming a premise from which we reason to a principle, theory; as well as the theory furnishing a basis for practice.

4 Development of economic science.

In ancient times, industrial society was so organized that there could be no developed economic science in the modern sense.

In 11th and 12th centuries the development of cities, guilds and commerce started more thorough economic study.

In 16th and 17th centuries the mercantilists taught. (Colbert, Petty, et al.) Exaggerated ideas regarding the importance of money, foreign trade, etc. Relied too much on state interference.

In 18th century physiocrats (Quesnay, Gournay, Turgot, et al.) taught freedom of trade, single tax on land, etc.

1776 Adam Smith’s Wealth of nations published. His English followers and modifiers, especially Ricardo, Malthus, Senior, Mill, etc., the so-called orthodox or classical school.

The main premises for their reasoning are:

a. A few common traits of human nature, especially man’s desire for wealth and his dislike for labor.

b. Each man will follow his own interest, and the interest of all will thus be secured.

c. External nature, especially well known facts regarding grain production.

d. Free competition is generally assumed as the condition of business. Other motives and conditions are excluded in reasoning, and the method of reasoning is mainly deductive from the above premises.

The principles reached were sometimes called natural laws, and were considered to be universal in their application.

The historical school, starting in Germany a little before the middle of this century (Roscher, Knies, Hildebrand) takes for its premises all facts regarding man and nature, as far as is possible; declares that there are no natural laws in industrial society, universal in application; but hopes to find some few general principles that will be of wide application. The main work at present is to get facts, historical and statistical, as a basis for inductive reasoning to principles of wide application.

Most of the leading economists of to-day occupy a middle ground in doctrine and method. It is recognized that the desire for wealth is a chief motive, but others must be taken into account. Even nature gives us no fixed premise, for man getting command over nature brings about changes. We need also to study the legal structure of society, the artificial conditionings of society. “Land is a natural fact; private property in land a legal fact;” both are economic facts.

We must seek principles, but we may also study how to modify conditions. Society is not like an animal; it is an organism that is consciously modifying its own structure and conditions.

We need in our studies the individual stand-point, the national standpoint, the cosmopolitan standpoint.

5 Hindrances and aids to the study of economics.

Among hindrances may be mentioned the many premises and their complicated nature, the difficulty of employing, in a fixed scientific sense, terms which are in every day use with varied meanings, — wealth, value, price, etc.; the wide-spread conviction that, because economics deals with every day life, our every day experience is enough to enable us to solve the problems of economics, etc.

It is an advantage that every one is interested in the problems of economics, because they concern every one’s business and life; that from our consciousness of our own motives and our knowledge of our own business we are able to know without study some of our premises, etc.

Topics for papers

1. How far may a man be a good banker, and still not understand the science of money.
2. Mention three mistakes in methods of life or in economic belief that are common among the uneducated, but that a knowledge of economics would prevent.
3. Compare in detail, as regards their relative excellence, the definitions of political economy given by Walker and Marshall.
4. If an economist could demonstrate beyond question that paper money was the best currency for the United States, would congress be justified in any case in refusing to pass a law to make paper money our currency? Give full reasons.
5. Defend the orthodox school of political economy, as regards their method of reasoning and investigation.
6. Give examples of man’s action upon nature within the last 50 years that would change our results in reasoning upon any economic question.

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Lecture 2

THE MONEY QUESTION

1 Origin and nature of money.

The earliest form of trading is barter, i.e., the exchange of one commodity directly for another commodity that one wishes to use. As economic society develops and exchanges increase in number, the difficulty for a buyer of finding a person who has the desired object that he wishes to sell, and for a seller of finding a purchaser who can give in exchange for one’s goods an exact equivalent of some desired object, leads practically to the adoption of some one article of general desirability as a medium by which exchanges may be readily effected. This commodity differs from others specially in this, that it is generally desired, so that any one is willing to take it, feeling sure that he can readily dispose of it when he wishes to make purchases.

To do its work well, it must, of course, be in some form that may be taken as a standard, and that can be used as a measure by which the values of other commodities are estimated.

As business becomes complex, and the credit system is established, this generally used commodity will naturally be the one in the terms of which contracts for deferred payments will be drawn.

To perform these functions to the best advantage, this commodity must have the properties of general acceptability, portability, durability, divisibility, stability of value, cognizability, homogeneity. Gold and silver have these properties to a greater degree than any other known commodity.

This instrument by which exchanges are effected, one of the most important instruments for saving labor, is called money.

2 Normal relation of government to money.

For convenience of its citizens the government may well impress its stamp on coins, thus practically certifying to their weight and fineness. So, to insure business convenience, it may well make some standard coin a legal tender for the payment of debts.

“A standard unit of value must always be a fixed quantity of a fixed quality of a specific commodity.” — Adams.

This government stamp certifies to value; it does not give value, as experience shows. Again, experience shows that a legal tender act, irrespective of quantity of issue, can not sustain value of light coin or of paper money.

3 Quantity of money needed.

Enough money must be on hand in a country to effect the cash payments due at any one time. This amount varies with the season, the method of doing business, and other circumstances. The value of the money unit varies inversely as the amount in the country, and consequently inversely as general prices.

4 Territorial distribution of money.

If money is good, that is in coin of full weight or in some form exchangeable on demand into such coin, it will be distributed between exchanging countries freely to meet the needs of business. A surplus of money in any country, by increasing prices, will check the foreign demand for goods while increasing the home demand for foreign goods, thus creating a demand for money abroad. Too small an amount in a country will produce the opposite effects, and thus in time secure the extra amount needed. Bad money always drives out good money. — Gresham’s law.

5 Single or double standard?

a. A single standard has the advantage of simplicity. The disadvantage of the single gold standard is that, in the opinion of many excellent authorities, gold is increasing less rapidly than the demand for it, so that its value is constantly rising, thus, by lowering prices, exerting a bad effect on business.

b. With a double standard, if the ratio of values can be maintained, the fluctuation of the standards in value will be much less. If many countries unite, the ratio could probably be maintained.

As yet, the ratio never has been maintained for a long period, and monometallists think it can not be maintained.

6 Free coinage of silver in the U. S. to-day.

With the continued large-purchase of silver, and use of silver in paying dues to the government, it seems but a question of time when the supply of gold in the U.S. treasury will be so small that it will have to make all its payments in silver. If this happens, the market value of the silver dollar would probably fall to the bullion value, and instead of a bimetallic currency we should have, or shall have, a single silver standard, in fact, whatever the law may be.

7 Inconvertible paper money.

a. If strictly limited in amount to business needs, it may not depreciate.

b. The interest of debtors and the exigencies of the treasury in time of need are powerful influences tending to overissue, and in practice, an overissue is found to be almost inevitable.

Topics for papers

1. May any commodity become money without the sanction of law? Reasons for answer.
2. Explain why our silver dollars pass in the United States as equal to gold.
3. Why is not the argument in favor of a double standard even stronger in favor of a quintuple standard?
4. Explain the territorial distribution of money of full bullion value.

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Lecture 3

THE RENT PROBLEM

1 Factors in production.

If we consider the process of production of any commodity, for example, a pair of shoes, we at once see that natural forces, labor and capital (tools) have contributed as factors to its production. Some economists think that the work of the business manager, the organizer of business, the entrepreneur, is so different in character from that of the ordinary work-man and that of the capitalist that the business manager as such is better considered as a fourth factor in the production of wealth.

2 Parties to the distribution of the product of industry.

If these factors unite to make a product, it seems but right that this product be divided among them in proportion to the service that each has rendered, as far as this proportion can be ascertained.

It is so difficult to discover this just proportion that the classes representing these factors are apt to disagree, and from this arise in good part the discords of society.

This distribution, too, it is to be noted, is a matter of human institution solely, and may vary in its principles in different ages and countries; hence the method and results of the distribution of the product of human industry in any society form a fair criterion of the character of that society.

One man may, of course, represent all the parties in distribution, but for the sake of clearness in discussion, the parties must be distinguished.

3 Origin of rent.

Rent arises from the varying degrees of productivity of different pieces of land cultivated for the supply of the same market. The price of the product of all being the same, the more productive pieces can be cultivated to greater advantage, and the cultivators can afford to pay rent to the owners.

4 Law of rent.

“The normal rent of any piece of land is fixed by the difference between its annual yield and that of the least productive land actually cultivated for the supply of the same market.” — Walker.

5 Relation of rent to price of product; to wages.

Economic rent forms no part of the price of the product, when there is free competition, and when there is still free land.

The payment of economic rent has no effect on wages under free competition.

6 Effect of social progress on rent.

The effect of increasing density of population, or of other progress that strengthens the demand for land is to increase rent. Note a similar effect on railroad stock, and other kinds of property whose value depends largely on a dense population.

7 Henry George and land nationalization.

As rent is due to the demand for land consequent on the increase of society, and not to the individual efforts of the owner, it seems that the economic rent is not earned by the land-owner, but comes to him through his right of ownership. Consequently, many have thought that, as society creates the demand for products that results in rent, society should get the rent either through state ownership of the land, or through taxation.

Most advocates of this doctrine think that present owners of land should be compensated for the capital they have invested in the land, or that the state should take by taxation only the increase of the rent. Henry George favors taxing to full amount without compensation, a course that seems entirely unjust.

George’s statement that there is a tendency for the benefit of all improvements in production to be absorbed by rent is not true.

State ownership would probably not secure so efficient use of the land as does private ownership.

It would increase the state machinery, perhaps, to an undesirable extent.

In cities, in many cases, the government might probably retain to advantage the ownership of the land, and rent for short fixed periods at an appraised valuation, thus securing a large revenue without injustice.

Topics for papers

1. If wheat sells at $1 a bushel, and the various tracts of land contributing to the supply of the market produce respectively 18, 20, 22, and 24 bushels to the acre, what will be the economic rent per acre on each tract?
2. Show that the principle of rent applies also to exceptional business ability, so that the profits or extra wages made by a man possessing this exceptional ability might fairly be called rent.
3. Mention other kinds of property besides land whose value is increased by the mere growth of society, without effort on the part of the owner.
4. Show clearly that economic rent forms no part of the price of agricultural products, while an increase in price will raise rent.
5. How does the rent of mines differ from that of farm land?

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Lecture 4

MONOPOLIES

1 Natural monopolies.

a. Certain natural products, some of which are of common use in society, such as salt, nickel, gold, from the nature of their production are not capable of increased production at will. Their production is limited to a certain place, and the owner of this place has of necessity a monopoly of the product, and may fix the price within certain limits at will.

In such cases the people may readily be unduly oppressed. Free competition is impossible.

b. Other kinds of business, (especially those connected with transportation, railroads, telegraphs, etc.,) that require a large initial outlay of capital, but that, after the plant is established, for every additional outlay bring a return in product much more than proportional to the increased outlay, have also the nature of a monopoly. For when they are once established, no rival can enter their territory without a much greater outlay of capital than they need make to do the same business.

In such cases competition on equal terms is impossible. An attempted competition results in great waste of capital. To parallel a railroad costs vastly more than to double the capacity of one already built. Shall the saving be made, or competition attempted?

c. In cities, the supply of water, gas, electric lighting, transportation by street railways, etc., is subject to the same conditions as those enterprises mentioned under b, for the number of street railways, gas mains, etc., in any one street is strictly limited by physical and economic conditions.

The case is the same as under b, but the government can more readily take control and manage for the good of the public than in the other larger enterprises.

2 Capitalistic monopolies.

A great aggregation of capital in business frequently gives the same advantage, in good part, as that held by the so-called natural monopolies; for the extent of business through more complete organization enables the large establishment to produce at much less expense than the small one.

a. The trust, a union of many corporations under one management, so that a pooling of profits makes their interests one, has proved one of the most successful forms of such capitalistic monopolies.

b. But the same result is accomplished by extending a corporation so that its business is equally great.

There may be competition in these cases, but only on a great scale. The consequence is that competition is very destructive, and in practice will not continue.

The combination has the advantages (1) Of the most skilled management, (2) Of great saving in the cost of management, (3) frequently of saving in the cost of transportation, (4) in purchase, making and use of inventions, etc.

Its disadvantages are that it has the power to raise prices above that normally fixed by free competition, e. g., the sugar trust and whiskey trust have done so at times. Still, this power is always strictly within limits fixed, (1) by the lessening demand for goods as the price increases, and (2) by the danger of attracting new capital into the business, if the profits become too great. Claus Spreckles and sugar trust, etc.

3 Legislative action regarding monopolies.

a. Experience seems to show that municipalities can wisely manage water and gas works at a saving generally to the citizens.

b. Legislation that forbids combinations, pooling, etc., providing a legal penalty for such acts, either deprives the community of the really great savings made by such combinations, or more commonly in important industries leads to the more complete consolidation into huge corporations. Neither result, perhaps, is desirable.

c. But the state should protect the citizens against extortion on the part of such combinations, (1) by providing for the fullest publicity regarding their business, (2) by forbidding undue increase of prices. How the latter provision is best enforced, whether by private suit, by commission, or otherwise, must be determined by experience. In some cases it is probable that state ownership of the enterprise is the readiest and best means of protecting the rights of the people.

The legal monopoly held by owners of patents frequently becomes oppressive. A careful revision of the law so as to prevent this, while still encouraging inventors, is desirable.

Topics for papers

1. Why will great establishments compete in lowering prices till all are losing money?
2. What good arguments for state ownership of the telegraph are not sound for state ownership of the railroads?
3. Is complete publicity of the methods of business and of the status of a great monopolistic enterprise a real check to abuse of power?
4. In what respects is the telephone monopoly, based on our patent laws, less injurious or dangerous than the telegraph monopoly, based on the nature of the business?
5. Under what conditions only should the franchise be granted to street railways?
6. What arguments can you give against city ownership and management of street railways, gas works, etc.?

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Lecture 5

THE WAGES QUESTION

1 Factors determining the rate of wages.

a. Wages are determined in the main by the productivity of the labor. The efficiency of laborers is affected by their food, physique, intelligence, training, hopefulness, faithfulness, etc. Brassey found in building railways that English navvies at 6s. per day were often cheaper than French navvies at 3s. A New England factory superintendent has found that a rest of ten minutes and a glass of milk in the middle of the forenoon, given to his factory girls, more than pay for themselves in increased product.

b. Machinery, if intelligently used, and skillful organization increase the product, thus affording the opportunity for increase of wages, if prices of product can be prevented from falling proportionally.

c. Laborers must know and seek their own interests in order to secure the gains that come from the increase in their efficiency with improved methods of production.

2 Highest and lowest limits of wages.

a. Highest limit of wages, all that the employer can pay and remain in business. If wages are about uniform in any line of business, the best manager could pay more than he will need to pay. Other things equal, under competitive system, the workman is best off who works for the employer that makes the largest profits.

b. Lowest limit of wages, the least sum that will keep the laborer in working condition. In exceptional cases, it might pay the employer, economically, to work horses or slaves to death, or to pay starvation wages. Generally it is an economic mistake to pay less than good living wages. Lassalle’s “iron law of wages” rarely true in real life.

3 Interest of society in the rate of wages.

Whatever may be true of individual employers, society is interested in keeping up and improving the “standard of life.” To secure this end, employers and laborers must meet on equal terms in arranging wages, rules regarding work, etc.; and society may be justified in taking measures to secure this result.

4 Influence of trades unions on wages.

Trades unions are a product of modern methods of production that put large numbers of workingmen of the same trade under one employer. They are suited to the conditions, a development.

a. They may at times raise wages by their direct influence on employers, by threats of strikes, etc. Their power is limited by the productivity of the industry, but (1) they may, by increased energy and saving, increase their own productivity and get then an increase in wages; (2) in exceptional cases, they may force up wages at expense of employer; (3) in exceptional cases, their efforts may keep up prices or raise prices, and thus permit them to increase wages.

b. They may improve the conditions of their members, their real wages, by traveling funds, insurance funds, bureaus of information, etc.

5 Labor legislation.

Legislation is a dangerous method of reform, but is sometimes necessary. The legislative measures that have seemed to aid laborers most are:

a. Factory acts, providing for government inspection;

b. Regulation of labor of women and children;

c. Employers’ liability acts;

d. Laws providing for payment of wages regularly, and in cash;

e. Courts of arbitration, etc.;

f. In Europe, especially in Germany, compulsory insurance of workingmen against accident, sickness, disability from old age and other causes partly at the expense of the workingman, partly of the employer and partly of the state. The German government seems satisfied with the results so far; the opinions of economists regarding the success of the experiment differ.

The aim of legislation is not to give workingmen an advantage over their employers, but to remedy social abuses and to put the competing classes on an equal footing.

Topics for papers

1. In hard times, why do employers more frequently discharge the poorest paid workmen first?
2. Are the American workingmen more productive than European workingmen because their wages are higher? Or are their wages higher because they are more productive? Or is there no relation between their relative wages and productivity?
3. Under what circumstances ought trades unions to limit the amount of work that they will permit their members to do?
4. May we look forward to any great increase in the wages of skilled laborers? If so, from what source will this increase in wages be drawn?
5. Mention any law passed in the interest of workingmen, or advocated by them that is, or would be, injurious to them.
6. Why ought not the state to supply labor for the unemployed?

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Lecture 6

COOPERATION AND PROFIT-SHARING

1 Significance of cooperation.

Cooperation means the union of the industrial classes. By this union the employer, the entrepreneur, is done away with, and the profits that he ordinarily reaps are divided among the laborers. The laborers may get interest, but if so they must own the capital. They may save rent, but if so they must own the land. In order to gain by cooperation, the business must be better managed than it is by the poorest class of employers; otherwise there will be no profits to save.

Since on account of their personal interests in the business cooperating laborers are likely to work better than for an employer, a cooperative industry, fairly well managed, is likely to be profitable.

2 Distributive cooperation.

The first, and on the whole, the most successful example of distributive cooperation is that of the Rochdale pioneers in England. In 1844, 28 weavers agreed to put one pound sterling each into a common fund to supply themselves with provisions. One of their number was to attend the store for two evening’s each week. The first investment made so great a profit that other members came into the business, and it rapidly grew until it is now one of the largest establishments in England with hundreds of stores and millions of pounds of capital The average rate of profit has been over 25% clear.

Similar enterprises have been started in the United States, notably by the farmers of the West in their cooperative stores, and in many similar establishments in New England. The most successful stores have followed the Rochdale plan: (a) they give no credit; (b) they always sell genuine goods; (c) as they are sure of customers they do little advertising; (d) they declare and fix a dividend of four or five per cent on their stock and divide the surplus among the purchasers in proportion to the amounts purchased. Members usually get a larger proportion on their purchases than non-members.

The chief dangers surrounding such enterprises come from competition with outsiders, ignorance and short-sightedness on the part of the managers, too low an estimate of the difficulties to be encountered, and voting by stock instead of by membership.

3 Productive cooperation.

The most successful enterprises in the United States have been in cooperage in Minneapolis; in stone cutting in Vermont; in iron manufacture in New York; in shoe making in Massachusetts. The work is usually done by the piece; the usual wages are paid; and the profits are divided in proportion to the work, after a low dividend has been declared.

Cooperation is especially suited to industries requiring comparatively little skill, in which piece work is common, and for which relatively little capital is required, and little supervision.

One of the chief advantages is that it trains men to understand business, to appreciate its difficulties and to be independent. It has a promising future.

A building and loan association is a cooperative enterprise in which men of small means, by each paying in a small amount, monthly or weekly, and loaning the sum thus accumulated to the one of their members most desiring it, supply themselves with capital for the building of houses, payment of debts, etc. These associations take the place in many cases of savings banks, and have acquired great importance in this country.

4 Profit-sharing.

a. Profit-sharing differs from cooperation in that the employer still remains to direct the business enterprise. It resembles cooperation in that a part of the profits is divided among the workingmen.

b. The plan was first developed by M. Leclaire in Paris. In 1842 Leclaire, a painter, agreed to give his regular workmen a share of his profits. He showed them how unusual excellence of work and diligence and saving would provide a fund from which he might, while obtaining greater profits for himself, increase their wages. They were skeptical at first, but the first division of profits satisfied them. He paid the highest wages in the city and was able eventually to add over 20% to their wages.

In the Pillsbury Flouring Mills in Minneapolis, in a number of years, 33 1/3% has been added from the profits to the regular wages of a large portion of the men, although their wages had been the highest in the city. Mr Pillsbury says it pays the firm also.

The N. O. Nelson Manufacturing Company of St Louis have for several years divided part of their profits among all men who have worked for them for more than six months. Mr Nelson says, “I look upon this plan as business and duty, and not as any philanthropy or kindness.” Both employers and laborers are benefitted.

Proctor and Gamble, the soap manufacturers; Rogers, Peet & Co., manufacturers of clothing in New York; Rand, McNally & Co. of Chicago; John Wanamaker, and many other wealthy employers of labor have followed similar plans, to the satisfaction of themselves and their workmen.

Some railroads in France, and the Toledo and Ann Arbor railroad in the United States, have adopted similar plans with gratifying success.

c. Methods of division of profits.

Some employers give an indeterminate sum to the employees; some divide all the profits above a certain per cent, among the employees; some divide the surplus profits, after interest on the capital has been paid, between capital and wages in proportion to their relative amount; some in proportion to the relative amounts of sales of goods and wages, etc. All agree that the system is as profitable to the employers as to the employees.

5 Adaptability of cooperation and profit-sharing for special industries.

While cooperation is best adapted to industries requiring small capital in proportion to the labor, to those needing little supervision and employing unskilled labor, profit-sharing is best adapted to those that require large capital and careful supervision, and in which much waste may be avoided by care on the part of the laborers. The effect of both is to educate the laborers, to make their interests one with those of their employers and thus to bring about harmony between the industrial classes.

Topics for papers

1. Is farming an industry well-adapted for cooperation or profit-sharing? Reasons for answer.
2. Non-borrowing members of building and loan associations often make from 12 to 20 per cent, profit on their investment. What is the source of this large profit?
3. Why are railroads not well-adapted to profit-sharing?
4. If the plan can be well applied to railroads, what special benefits to society would come therefrom?
5. What are the chief causes of failures (a) of cooperative enterprises (b) of profit-sharing enterprises?

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Lecture 7

EMIGRATION AND IMMIGRATION

1 The good of society the standpoint of discussion.

We must consider the effects of immigration not merely on the wealth of our country, but on our politics, our social life, our morals, our religion, etc. The question is, perhaps, to be considered as mainly social and political, and only to a less degree economic.

2 History of emigration and immigration.

Early migrations were for purposes of conquest or colonization. Emigration in these later days is for the benefit of the individuals, though it is frequently thought that emigration will relieve the pressure of population on the means of subsistence in the older densely populated countries. Statistics show that only from Ireland is emigration large enough to absolutely decrease population. Those countries with large emigration have also high birth rates. “Had there been no emigration in this century, the population of Europe would probably have been even less than now.” Emigration is not a remedy for over-population, unless the emigrants are the weak and thriftless.

From 1783 to 1820 there were perhaps 250,000 immigrants into the United States. In 1842 there came some hundred thousand; in 1854, 427,833; in 1882, 730,000. The immigration of 1882 probably represents a normal birth increase of a population of 50,000,000 of people. We have therefore now an annual immigration nearly equal to a normal increase by births of a population of some 45,000,000.

3 Causes of immigration and forces of assimilation.

The chief causes of immigration are: (a) commercial disaster; (b) cheap transportation; (c) solicitation of steamboat companies; (d) prepaid tickets from friends; (e) hope of improving one’s political and social conditions.

The chief forces of assimilation are: (a) economic prosperity, with the consequent love of the country that has helped them; (b) free institutions; the vote, schools, etc.; (c) the English language; (d) intermarriage.

4 Political effects of immigration.

The immigrants of one nationality largely vote as a unit, instead of from individual convictions. At times they permit foreign politics to influence their votes here; their foreign customs and training leads them at times to vote against our peculiarly American institutions. The vote force of our immigrants is much greater than that of the same number of Americans. Among immigrants the proportion of males is large, and they average older than native-born citizens. Their voting force compared with that of the same number of native-born Americans is about as 46 to 25.

5 Economic effects.

(a) They bring small amounts of property; (b) the cost of raising and educating them is saved to the country; but (c) the economic value of a man lies mainly in his capacity and character, not in the cost of bringing him up. It is the amount of wealth which he will add to the community before he dies.

Three-fourths of the immigrants are unskilled laborers, and the proportion of unskilled laborers is much greater of late years. In earlier days, when we needed much unskilled labor, our immigrants were doubtless an economic advantage; at present the advantage is much less. If their standard of life is very low, their competition on the labor market is dangerous to our standard of life.

3 Social effects.

The immigrants in many cases come from the lower classes, and have, therefore, a tendency to lower our standard of thrift, morality, health and intelligence. The more favorable conditions here may remove this danger, as it often has done. It cannot be shown statistically that the foreign-born furnish a larger proportion of the insane, blind, deaf, and so on, than do natives. The immigrants furnish a large proportion of our criminals, a still greater proportion of our paupers, and our illiteracy is doubtless greatly increased by immigration.

4 Relation of the state to emigration and immigration.

Early in this century, emigration of the poor and criminal classes was assisted at times by foreign states, at times by private societies, at times by steamship companies for the sake of the fare. Since the American nations have protested against these acts, they have been largely stopped. Europe should protect her citizens from emigration brought about by false representations.

Immigration of contract labor, and of the defective, dependent and criminal classes is forbidden by our laws. The best methods of controlling immigration are doubtless: (a) rigid enforcement of our present laws; (b) an extension of those laws in such a way as to ascertain more thoroughly the character of the immigrants before permitting them to enter our country; and (c) by working in unison with the European nations.

A state ought to restrict an immigration that is degrading. It owes it to itself and to the world not to lower its plane of civilization. “One nation on a high plane of civilization is better than half the world in a state of semi-civilization.”

Topics for papers

1. Mention laws, either national or local, passed by the votes of the foreign-born, contrary to the will of the native-born.
2. Make an estimate of the net cash value to the country of an average, diligent, sober laborer, whose working period covers 40 years, who is supported by his parents 15 years, and by his children five years.
3. If a Chinaman works in this country for 10 years at one-third less wages than the American workmen, and then takes his savings with him to China, has the country lost by him?
4. Is restriction of immigration un-American? Give reasons for your answer.
5. Can you give any reason against making the English language the medium of study and communication in all our schools, even though some schools be in German districts, where nearly all the children are German?

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Lecture 8

THE PROTECTIVE TARIFF

1 Duty of the state toward industry.

The interests of individuals do not always coincide with the interests of the people. It is the duty of the state to further the general welfare, even though it be at times at the expense of individuals. There is, however, always danger in state interference. Society is so complicated that the ultimate effects of laws are with difficulty traced. The primary duty of a State is, so far as may be, to keep opportunities equal for all.

2 A protective tariff vs. a revenue tariff.

The main purpose of the revenue tariff is to provide means for the support of government, and it should be so levied as to interfere as little as possible with the natural course of industry in a country. A protective tariff, on the other hand, finds its chief purpose in aiding the development of certain industries.

Does it thereby check the development of others? Any revenue that comes from a protective tariff is to be considered as incidental. It is no argument in favor of a protective tariff that it furnishes a large revenue.

3 On what classes of goods should a protective tariff be levied?

A protective tariff should not be levied, (a) On goods that without it can be produced here more advantageously than abroad. Such laws have a bad effect in that they deceive the people, are used for “log-rolling” in congress, and often lead to the making of new laws through wrong motives, (b) On goods for the production of which the country is ill adapted, unless they be needed for defense or for their educational value.

It can be justified, then, only for those industries to which our country is well adapted, but in which, for the present at least, foreign nations have the advantage.

4 Who bears the burden of the duty?

Trade is usually for the advantage of both parties to the bargain. As a rule, however, the advantage is not equal to both. The one that is put at the greatest disadvantage in making the bargain, profits least. When foreign nations must send goods through our country or into our country to get rid of a surplus, the probability is that the price is such that the foreign manufacturer pays a good part or all of the tariff duty; when we are at a like disadvantage, we pay it all. Generally speaking, the consumer of the imported goods pays in increased prices, not all, but a good part of the tariff, and he pays often an equal amount on the home manufactures protected.

5 Development of natural resources.

It is well to have the natural facilities of any country developed and to have a great variety of industries in every country. This development and variety may be reached at too great a cost, and the cost is always to be taken into consideration in proposing laws to aid in the development of new industries.

6 Infant industries.

The inhabitants of a city frequently pay a large bonus for the establishment of a new industry in their midst; similarly, a country might profitably at times pay, by means of a tariff, for the introduction of new industries, until they became strong enough to stand alone. But these industries will come in time at any rate, if the country is well adapted for them; and care must be taken that they are not procured at too great a cost. By the policy of protection, capital is drawn for a time from productive industry into a business that is less productive than the average in the country, unless the new industry be established by foreign capital. If the industry when established becomes more profitable than the average, the policy may pay.

7 How high should a protective tariff be and how long continued?

A protective tariff should be high enough to protect, but not higher; otherwise bad investments will be made that will prevent the lowering of the tariff at the proper time.

A protective tariff should continue till an industry is fully established, if it is one well adapted to the country, but no longer. If experience shows that the protected industry can not thrive, it is evident that the tariff was unwisely laid, and it should be withdrawn on due notice.

8 Protective tariff and wages.

A protective tariff may and frequently does raise the wages in certain protected industries, but this is in part, temporarily at least, at the expense of other industries in the country. A protective tariff, however, cannot raise the general level of wages in the country, so long as the tariff itself is necessary.

9 Protective tariff in politics.

From the political side, a protective tariff is dangerous. A proper adjustment of duties is a task of the greatest difficulty and one for which congress from its nature is ill adapted.

Interested parties may and do bring strong pressure to bear to obtain duties unduly high and to keep them longer than is wise. To secure these ends, large corruption funds will naturally be raised for use in elections.

10 Conclusion.

Unless well laid and managed, a task of very great difficulty, a protective tariff may well do more harm than good. One should not be levied, until a strong affirmative case is made for every product protected.

Topics for papers

1. Does not every argument in: favor of a protective tariff by the United States against England apply as well to a tariff by Minnesota and Illinois against New York and Pennsylvania?
2. If an industry, protected by a fair tariff for 60 years, is not yet well enough established to meet foreign competition without the tariff, what course ought to be pursued regarding it?
3. Is it an advantage or a disadvantage to the workingmen of the United States that foreign workingmen have lower wages?
4. If our tariff were abolished to-morrow in toto and all our revenues were raised by direct taxation, should we probably have, after 20 years, more or fewer different industries than we have now?
5. (a) Are American workingmen really more productive than foreign workingmen, or are their higher wages due to the tariff? (b) How can an immigrant become much more productive immediately on his arrival here than he was in Germany or Ireland a month earlier?

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Lecture 9

THE RACE PROBLEM

1 Nature of the problem.

Foreigners, in general, consider the race problem the most difficult one before the American people. In its nature it is economic, social and political. It concerns the welfare, not only of the negro, but of the white as well, and it is a question that is becoming of greater import every day.

2 Statement of historic facts.

History and science seem to show that the negro is an inferior race, and one as yet incapable of an advanced, civilized self-government. Throughout all history, the race has been an enslaved one. The experience of the West Indies shows that, as left to themselves, the negroes are rapidly relapsing from a state of higher civilization into a state of barbarism. In the reconstruction period in the United States, the negro governments of the South invariably ran the states heavily into debt, even to bankruptcy, passed laws of shameful oppressiveness against the whites, fostered corruption, dishonesty and tyranny.

3 Present social conditions.

While the negroes in the South have made some advancement in the accumulation of property in the last 25 years, still the advance in most places is so slight that it shows them now, as a race, to be exceedingly careless and improvident. Relatively very few of them in the South ever accumulate enough to become regular tax-payers. In whole states, where they are as numerous as the whites, not one will be found with any shares in bank, railroad or other business stock. In Chatham Co., Georgia, in which Savannah is situated, the negroes constitute 61 per cent of the population and hold 2 per cent of the property. There is in the South not more than one negro lawyer or physician to 50 white men of the same profession and not one within 25 years has risen above mediocrity in any line. Douglass and Bruce are not pure-blooded negroes.

The morals of the negroes in the South are unspeakably bad. “They are full of base, downright hypocrisy and falsehood.” — Rev. Isaac Williams (colored). In many places, legal marriage and marital faith are almost unknown. In Mississippi, in one county where the negroes should have taken out 1,200 marriage licenses, only three were taken out.

The negro has made since the war decided gains in education. In 1880, in the black belt, more than 50 per cent of the negroes were illiterate; in 1890, probably about 30 per cent. The education is, however, very meagre; but there are more than 16,000 colored school teachers, a noteworthy fact. Most of the negroes are wofully superstitious.

Socially the negroes have no standing among the whites. Education or partly white blood seems to make no difference in this respect; and their social condition in the North does not differ materially from that in the South.

4 Present political conditions.

“The negro is not permitted to vote if the vote disturbs the judgment of the white majority; and if it changes the verdict of their former masters, it is not counted.” — W.T. Sherman. The fact illustrates the importance of the question, for the experience of reconstruction days seems to justify the whites in keeping the supremacy, even by revolutionary measures, if necessary. “Senator Hampton stated that to get the negro out of politics, he would gladly give up the representation based on his vote.” If this could be done legally by an educational qualification for the suffrage, it would seem to be desirable.

5 Remedies proposed.

1. While intermarriage has been advocated by many, experience seems to show that race feeling is so strong as to render this solution of the problem impracticable. The mulattoes are rapidly decreasing in number, since the abolition of slavery.
2. Congressional interference has so far proved ineffectual, when not injurious. Such interference by election laws or social rights laws beyond the present ones would probably be unwise, if not oppressive, unless they were to bring about such a solution as that suggested by Senator Hampton.
3. Colonization by force is probably entirely impracticable, and would be unjust. A voluntary emigration to some of the best parts of Africa now controlled by civilized governments, though mainly populated by blacks, might perhaps be encouraged with good effect. The more intelligent of the race, with little hope of preferment here, might well expect to become men of influence and even of distinction there, while most of them would have grounds of hope for improving their condition.
4. For the present, education is certainly to be fostered, as a means of elevating the race and making it less dangerous. So far the negro, with individual exceptions, gives little promise of great advancement, but the only hope is along the line of education, academic and specially industrial.

6 Measures to recommend.

Give the best education possible to elevate the negro in all ways, and study carefully the question of voluntary emigration. If the condition of the negro can be made better in some of the most fertile parts of Africa than it can become here, it would probably be the best solution of the problem to encourage him to emigrate. If he remains, it is perhaps probable that he will disappear eventually before the stronger race, as does the Indian.

Topics for papers

1. In what respects, from the legal and moral standpoint, did the action of the whites in the South, in depriving the negro of his suffrage, at the close of the reconstruction period, differ from that of the American colonies in their resistance to Great Britain in 1776?
2. Would it probably be best for either the southern states or the country as a whole to have the negro vote cast and counted in southern states where the negro voters are in a majority
3. Why do not southern Democrats advocate and carry through an educational qualification for the suffrage.
4. Define manhood

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Lecture 10

PRINCIPLES OF SOCIAL REFORM

1 Nature of society.

Society is not merely an aggregation of men, women and children living in the same locality, but it is this aggregation so organized under laws and institutions that it becomes an independent being. These laws and institutions, the whole form of the organization in fact, are the product of the changing thoughts, feelings, superstitions, beliefs that have come from the influences external and internal that have been brought to bear upon individuals.

2 Social good and evil.

Anything that molds the beliefs of individuals so as to lead them toward a stronger, higher civilization is a social good. Anything that molds beliefs in such a way that civilization is weakened or made worse is a social evil. Things that in one society are an evil, in another society may be a good, and vice versa. Innocent customs when they become social evils are frequently not recognized as such; and the first clear-headed people who recognize them as evil are considered fanatics.

3 The reformer deals with individuals.

If society is based upon the beliefs, feelings, superstitions of individuals, social reforms must deal with the passions, fears, hopes, aspirations and beliefs of individuals. The reformer must make individuals see evils for themselves and for society, and thus lead them to change their customs.

4 How the influence of heredity may be modified.

The influence of heredity in endowing men with evil passions, thoughts and motives, is everywhere recognized. This influence of heredity may be modified: first, by bringing good influences to bear upon the victim, especially in early youth; and second, by preventing people that are ruled by evil passions from propagating their kind. Hereditary criminals and paupers are not normal human beings. They must be treated as if ill or insane, and cured. A few days’ imprisonment of the confirmed drunkard or criminal is a waste of public time and money. “It is unsocial to plead insanity as a defense. It is an explanation. If we permit the plea we encourage crime.” The insane must be influenced toward self control.

5 Influence of environment.

Criminals and paupers are not only born, but they are frequently made through the influence of their environment. Not all criminals are born evil. Society is in good part responsible for a criminal environment. “Every society has the criminals that it deserves.” An environment may be changed: (a) At times, by laws, but the effect of law is only temporary and only a means, (b) By establishing societies and leading individuals to bring purer social influences to bear upon adults and to rescue children from debasing homes and influences, (c) In the case of criminals, by the best reformatory methods.

The best method of reform for adults is to lead them to change their own environment; sometimes by pledges and promises. Children should be trained in school and in the home to self control. Civilization means freedom from the power of custom and external influences and the direction of life by reason. An educated man does as he wills, and he wills according to the dictates of reason; an untrained man acts under the influence of passion and impulse.

6 Responsibility of citizens and their duty regarding social evils.

From the very nature of society it follows that every individual in society is responsible more or less for social evils; that social reforms must come from the influence of individuals upon individuals; that, consequently, it is the duty of every citizen by influence and example and self control to train himself and others toward the highest civilization. Society is certain ultimately to improve, though the process of improvement may be very slow.

Topics for papers

1. Which has the greater influence over us in our daily lives, law or custom?
2. Mention some customs which are social evils with us to-day that in other times or countries have been social benefits.
3. Why ought not the state to execute all criminals and paupers that are recognized as incorrigible, and certain to be a burden and menace to the state throughout their lives?
4. Have you any reason for thinking that you would not be a burglar or tramp or criminal of some other kind, had you been reared as most of those classes have been?
5. In what way are you personally responsible for the acts of the drunkards in your city?

 

Source: Jeremiah Whipple Jenks. Practical Economic Questions. University of the State of New York, University Extensions Department (Albany, N.Y.), Syllabus 1, January 1892.

Image Source:  Jeremiah Whipple Jenks. Cornell University, Rare Book and Manuscript Collections.