Categories
Harvard M.I.T. Suggested Reading Syllabus

Harvard. Undergraduate reading list for Industrial Organization and Public Policy. Bishop, 1955-56

 

 

Robert L. Bishop was called by his alma mater to render service to cover the undergraduate course on industrial organization and public policy in 1955-56. He still taught that year at M.I.T. according to the course staffing records, so the cross-Cambridge commute was a convenient (for all parties) gig. The previous year the same course was co-taught by Carl Kaysen and Merton Peck. Comparing the Spring term syllabus, items I, III, and V were the taken over “as is” by Bishop. The only question is now how much of the Fall term reading list was in common.

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Course Enrollment

[Economics] 161. Industrial Organization and Public Policy. Associate Professor Bishop. (M.I.T.). Full course.

(Fall) Total 130: 2 Freshmen, 15 Sophomores, 74 Juniors 36 Seniors, 3 Radcliffe.
(Spring) Total 123: 2 Freshmen, 8 Sophomores, 73 Juniors 37 Seniors, 3 Radcliffe.

 

Source: Harvard University. Report of the President of Harvard College 1955-56, pp. 77-78.

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HARVARD UNIVERSITY
Department of Economics

Economics 161
Fall Term 1955-56
Professor Bishop

 

  1. The Modern Business Unit (Sept. 26 – Oct. 7; 4 lectures, 2 sections)

N. S. Buchanan: The Economics of Corporate Enterprise, Ch. 3
H.G. Guthman and H.E. Dougall, Corporate Financial Policy, Ch. 2
A.A. Berle and G.C. Means: The Modern Corporation and Private Property, Bk. II, Ch. 1
R.A. Gordon: Business Leadership in the Large Corporation, Ch. 1-3, 12-14
National Bur. of Ec. Research: Cost Behavior and Price Policy, Ch. X
H.L. Purdy, M.L. Lindahl and W.A. Carter: Corporate Concentration and Public Policy, (2nd ed.) Ch. 7
J.K. Butters and J.V. Lintner: The Effects of Taxation on Corporate Mergers, Chs. IX, X

  1. The Functioning of Markets and the Economic Norms of Public Policy (Oct. 10-Nov. 4; 7 lectures, 4 sections)

J. S. Bain: Price Theory (or Pricing, Distribution, and Employment, Rev. Ed.) Ch. 1-7 (Ch. 3 is useful chiefly as review)

  1. Monopolistic and Oligopolistic Markets (Nov. 7 – Nov. 30; 8 lectures, 2 sections, hour exam)

Donaldson Brown, “Pricing Policy in Relation to Financial Control” (reprints)
TNEC Monograph No. 21; Monopoly and Competition in American Industry, Ch. IV
W. Nutter: “The Extent and Growth of Enterprise Monopoly” (pp. 141-153) in Gramp and Weiler, eds., Economic Policy: Readings in Political Economy
W.A. Adams, ed.: The Structure of American Industry (rev. ed.) Ch. V-XI
F. Machlup: The Basing-Point System, Ch. 1, 3, 6, 7
“Big Business in a Competitive Society,” Fortune, Supplement, Feb. 1953

  1. Anti-Trust Policy (Dec. 5- Dec. 21; 6 lectures, 2 sections)

S. C. Oppenheim: Cases on Federal Anti-Trust Laws, pp. 57-69; App. A, B, C (pp. 963-85) pp. 106-127, 164-182, 250-265, (monopoly cases); pp. 281-286, 291-301, 310-330 (combination cases)
S.C. Oppenheim: 1951 Supplement, pp. 203-289 (Alcoa remedy)
U.S. v. United Shoe Machinery Corp., Fed. Supp.
E.S. Mason: “The Current Status of the Monopoly Problems in U.S.,” Harvard Law Review, June 1949
C.E. Griffin: An Economic Approach to Anti-Trust Problems
J.B. Dirlam and A.E.Kahn: Fair Competition: The Law and Economics of Anti-Trust Policy, Ch. 1, 2, 5, 9

Reading Period Assignment

Markham: Competition in the Rayon Industry

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HARVARD UNIVERSITY
Department of Economics

Economics 161
Spring Term 1956
Professor Bishop

 

  1. Markets of Large Numbers (Feb. 1 – Mar. 2; 8 lectures, 5 sections)

Agriculture
Cotton Textiles
Women’s clothing
Crude Oil

R. Schickele, Agricultural Policy, Ch. 9-11, 13-17.
K. Brandt, Farm Price Supports, Rigid or Flexible?
J.K. Galbraith, “Farm Policy: The Current Position,” Journal of Farm Economics, May, 1955, pp. 292-304.
A.M. McIsaac, “The Cotton Textile Industry,” in Adams, The Structure of American Industry, 2nd ed.
“Adam Smith on 7th Avenue,” Fortune [handwritten note: Jan. 1949?]
N. Ely, “The Conservation of Oil,” Ch. 11 in Readings in the Social Control of Industry.
E.V. Rostow, A National Policy for the Oil Industry, Part II.

  1. The Plane of CompetitionThe Securities Markets (Mar. 5-Mar. 9; 2 lectures, 1 section)

Merrill, Lynch, Pierce, Fenner and Beane, How to Read a Balance Sheet.
W. E. Atkins, G.W. Edwards, and H.G. Moulton, The Regulation of the Securities Markets, Chs. 2-6.

  1. The Regulated Industries (Mar. 12 – Apr. 13; 8 lectures, 3 sections; hour exam, Apr. 13)

Electric Power
Transportation

Twentieth Century Fund: Electric Power and Government Policy, Ch. I-IV, X.
M. L. Fair and E.W. Williams, Jr., Economics of Transportation, Ch. 18-23, 25, 30, 32.

  1. The Patent System (Apr. 16 – Apr. 20; 2 lectures, 1 section)

Symposium, Law and Contemporary Problems, Vols. 12 and 13 (1947-48)—articles by:

Hamilton and Till, Vol. 13, pp. 245-59,
Abramson, Vol. 13, pp. 339-53,
Stedman, Vol. 12, pp. 649-79,
Davis, Vol. 12, pp. 796-806.

R. L. Bishop, “The Glass Container Industry,” in Adams, The Structure of American Industry, 1st ed.

  1. Nationalization and Planning (Apr. 23 – Apr. 30; 3 lectures, 1 section)

J. E. Meade, Planning and the Price Mechanism, pp. 1-104.
B.W. Lewis, British Planning and Nationalization, Ch. 1-3.
H.A. Clegg and F.E. Chester, The Future of Nationalization, Ch. 1, 3.

Reading Period Assignment

To be announced.

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. (HUC 8522.2.1) Box 6, Folder “Economics, 1955, 1956, (2 of 2)”.

Image Source:   Robert Lyle Bishop. MIT Museum.

 

Categories
Cambridge Curriculum Suggested Reading

Cambridge. Guide to the Moral Sciences Tripos. James Ward, editor, 1891

 

 

Just learned today that the plural of Tripos is Triposes. But needn’t worry, I will stick to the singular form as in “Moral Sciences Tripos”. For those curious about all the Triposes offered at Cambridge University at the end of the 19th century,  much valuable information is to be found in The Student’s Guide to the University of Cambridge (Fifth edition, rewritten. Cambridge: Deighton, Bell and Co. 1893). Until Alfred Marshall was able to introduce a new Tripos in Economics and Political Science at Cambridge (see Alfred Marshall: The New Cambridge Curriculum in Economics and Associated Branches of Political Science: Its Purpose and Plan, 1903), the Moral Sciences Tripos of Psychology, Philosophy and Political Economy had served as an important breeding ground for Britain’s future economists.

Each of the individual guides for a particular Tripos could be purchased by the students. Below we have the guide written by the psychologist/philosopher, James Ward, for the Moral Sciences. He notes that John Neville Keynes provided suggestions with respect to Political Economy. I have provided links to just over thirty items in the readings lists.

 

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MORAL SCIENCES TRIPOS.
[revised edition, 1891]

Edited by
James Ward, Sc.D.
Examiner for the Moral Sciences Tripos and Lecturer
and Assistant Tutor of Trinity College

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NOTE.  For the special recommendations relating to Political Economy the Editor is indebted to Dr [John Neville] Keynes, University Lecturer and formerly Fellow of Pembroke College; and for those relating to Politics and Ethics he is indebted to Mr J.S. Mackenzie, Fellow of Trinity College.

________________

The examination for the Moral Sciences Tripos consists of two parts; and begins, as a rule, upon the Monday after the last Sunday but one in May. No student may present himself for both parts in the same year.

The first part consists of two papers on each of the following subjects: Psychology including Ethical Psychology; Logic and Methodology; Political Economy; together with a paper of Essays.

A candidate for honours in this part must be in his fifth term at least, having previously kept four terms; but nine complete terms must not have passed after the first of these four, unless the candidate has obtained honours in some other Tripos, in which case eleven complete terms may have passed.

The names of the candidates who obtain honours are placed in three classes, each class consisting of. one or more divisions arranged in alphabetical order.

The subjects of the second part of the examination fall into two groups:—(A) Metaphysics, Political Philosophy, Ethics—on each of which there is one paper—and (B) the following special subjects, History of Philosophy, Advanced Logic and Methodology, Advanced Psychology and Psychophysics, Advanced Political Economy. There are two papers on each of these special subjects besides an Essay paper containing questions on all the above subjects. Every student must take one, and may not take more than two, of the special subjects; also every student must take the papers on Metaphysics and Ethics except those who select Advanced Political Economy as a special subject: for such students the paper on Political Philosophy is provided as an alternative for Metaphysics.

A candidate for honours in this part must have already obtained honours in Part I. or in some other Tripos: he must also be in his eighth term at least, having previously kept seven terms; but twelve complete terms must not have passed after the first of these seven.

The names of the candidates who pass are placed in three classes arranged in alphabetical order. No candidate will be refused a first class on the ground that he has taken up only one special subject provided that his work reaches the first class standard in the compulsory subjects and his special subject taken together. In the case of every student who is placed in the first class, the class list will shew by some convenient mark (1) the subject or subjects for which he is placed in that class, and (2) in which of those subjects, if in any, he passed with special distinction.

The following schedules of the different subjects, with lists of books recommended for study, was issued by the Special Board for Moral Science on June 17, 1889.

Schedule of the Subjects of Examination in
Part I. of the Moral Sciences Tripos.

I. Psychology.

  1. Standpoint, data, and methods of Psychology. Its fundamental conceptions and hypotheses. Relations of Psychology to Physics, Physiology, and Metaphysics.
  2. General analysis and classification of states of mind. Attention, consciousness, self- consciousness. Elementary psychical facts: impressions, feelings, and movements; retentiveness, arrest, association; appetite and aversion; reflex action, instinct, expression of feeling.
  3. Sensation and perception. Intensity, quality, and complexity of sensations. Physiology of the senses. Activity and passivity of mind. Localisation of sensations. Psychological theories of time and space. Intuition of things.
  4. Images. Imagination, dreaming, hallucination. Flow of ideas. Interaction of impressions and images. Memory, expectation, obliviscence.
  5. Thought. Comparison, abstraction, generalisation: formation of conceptions. Psychology of language. Influence of society upon the individual mind. Judgment. Psychological theories of the categories.
  6. Emotions: their analysis and classification. Higher sources of feeling: aesthetic, intellectual, social and moral. Theories of emotional expression.
  7. Voluntary action; its different determining causes or occasions, and their operation: Pleasure, pain, desire, aversion, and their varieties: will and practical reason: conscience, moral sentiments, moral perception or judgment, moral reasoning. Conflict of motives, deliberation, self- control. The origin of the moral faculty.

List of books recommended on this subject:

Sully, Outlines of Psychology.
Bernstein, The Five Senses of Man.
Bain, The Emotions and the Will.
Ward, Psychology, Article in the Encyclopedia Britannica, ninth edition.

The following books should also be consulted:

Bain, The Senses and the Intellect.
Dewey, Psychology.
Höffding, Psychologie in Umrissen.
Ladd, Elements of Physiological Psychology.
Lotze, Microcosmus, Vol. I.
Spencer, Principles of Psychology [Volume I; Volume II].

II. Logic and Methodology.

  1. Province of Logic, formal and material.
  2. Logical functions of language: names, and their kinds: formation of general notions: definition, division, and classification: predicables and categories: scientific nomenclature and terminology.
  3. The fundamental laws of thought, and their application to logical processes.
  4. Propositions and their import: opposition and conversion of propositions.
  5. Analysis and laws of syllogism.
  6. The nature of the inductive process: ground of induction: connexion between induction and deduction: analogy.
  7. Uniformities of nature, and their combinations: their analysis, and the methods of discovering and proving them: observation and experiment: scientific explanation: the nature and uses of hypothesis: doctrine of chance.
  8. Error, its nature and causes, and the safeguards against it: classification of fallacies.

List of books recommended on this subject:

Whately, Logic.
Keynes, Formal Logic.
Mill, Logic [Volume I; Volume II]
Jevons, Principles of Science.

The following books should also be consulted:

Bacon, Novum Organon.
Drobisch, Neue Darstellung der Logik.
Mill, Examination of Hamilton, Chapters 17 to 24.
Whewell, Novum Organon Renovatum.
Ueberweg, System of Logic.

III. Political Economy.

  1. The fundamental assumptions of Economic Science, the methods employed in it, and the qualifications required in applying its conclusions to practice; its relation to other branches of Social Science.
  2. Production of Wealth.
    Causes which affect or determine

    1. The efficiency of capital and of labour.
    2. The difficulty of obtaining natural agents and raw materials.
    3. The rate of increase of capital and population.
  3. Exchange and Distribution of Wealth.
    Causes which affect or determine

    1. The value of commodities produced at home.
    2. The rent of land.
    3. Profits and wages.
    4. The value of currency.
    5. The value of imported commodities. Monopolies. Gluts and crises. Banking, and the foreign Exchanges.
  4. Governmental Interference in its economic aspects. Communism and Socialism.
    The principles of taxation: the incidence of various taxes: public loans and their results.

List of books recommended on this subject:

Marshall, Economics of Industry.
Walker, The Wages Question, and Land and its Rent.
Mill, Principles of Political Economy, Books III. and V.
Jevons, Money and the Mechanism of Exchange.
Sidgwick, Principles of Political Economy, Introduction and Book III.
Fawcett, Free Trade and Protection.

The following books should also be consulted:

Bagehot, Lombard Street.
Bastable, Foreign Trade [sic, The Theory of International Trade (1887)].
Farrer, Free Trade and Fair Trade.
Giffen, Essays in Finance, Second Series.
Nicholson, Money and Monetary Problems, Part I.
Rae, Contemporary Socialism.
Sidgwick, Principles of Political Economy, Books I. and II.

Schedule of the Subjects of Examination in
Part II. of the Moral Sciences Tripos.

A.

I. (a) Metaphysics.

  1. Knowledge, its analysis and general characteristics: material and formal elements of knowledge; self-consciousness as unifying principle; uniformity and continuity of experience.
  2. Fundamental forms of the object of knowledge: difference, identity; quantity, quality, relation; space and time; unity, number; substance, change, cause, activity and passivity; &c.
  3. Certainty, its nature and grounds : sensitive, intuitive and demonstrative certainty; necessities of thought;’1 inconceivability of the opposite “; verification by experience.
  4. Criteria applicable to special kinds of knowledge: matters of fact and relations of ideas; logical and mathematical axioms; fundamental assumptions of physical science: causality, continuity, conservation of matter and of energy.
  5. Sources and limits of knowledge: Empiricism, Rationalism, Transcendentalism; relativity of knowledge, its various meanings and implications; distinction of phenomena and things per se; the conditioned and the unconditioned, the finite and the infinite.
  6. Coordination of knowledge: mechanical and dynamical theories of matter; evolution; physical and psychical aspects of life; province of teleology; relation of mind and matter; relation of the individual mind to the universe; problem of the external world; Materialism, Idealism, Dualism; relation of theoretical and practical philosophy.

I. (b) Politics.

  1. Definition of State: general relation of the individual to the State and to Society : connexion of Law with Government in modern states : general view of functions of government : grounds and limits of the duty of obedience to government.
  2. Principles of Legislation in the modern state: right of personal security : rights of property: contract and status: family rights : bequest and inheritance : prevention and reparation of wrongs : theory of punishment : governmental rights : grounds and limits of governmental interference beyond the making and enforcement of laws : principles of taxation.
  3. External relations of states : principles of international law and international morality : war, and its justifications : expansion of states, conquest and colonization : relation of more civilized societies to less civilized.
  4. Distribution of the different functions of government in the modern state : legislative, executive, and judicial organs, their mutual relations, and their modes of appointment : relation of the state to other associations of its members : sovereignty: constitutional law and constitutional morality: constitutional rights of private persons : central and local government: federal states; government of dependencies.
  5. A general historical survey of (a) the development of Law and Government, (b) the chief variations in the form and functions of government in European communities, (c) the relations of these variations to other social differences and changes.

II. Ethics.

  1. Analysis of the moral consciousness; moral sentiment, moral perception, moral judgment, moral intuition, moral reasoning: object of moral faculty; voluntary action, motives, intentions, dispositions, habits, character: freedom of will and determination by motives.
  2. The end or ends of rational action, ultimate good: the standard of right and wrong action: moral law: moral obligation: evil, moral and physical: interest and duty: virtue and vice: moral beauty and deformity: happiness and welfare, private and universal: pleasure and pain, qualitative and quantitative comparison of pleasures and pains: perfection, moral and physical, as rational end.
  3. Exposition and classification of particular duties and transgressions, virtues and vices: different types of moral character: principles of social and political justice.
  4. Relation of Ethics to Metaphysics, Psychology, Sociology and Politics.

 

Special Subjects.

III. History of Philosophy.

A special subject in the History of Philosophy will be announced in the Easter Term next but one preceding that in which the examination is to be held. Students will also be required to have a general knowledge of the History of Philosophy.

IV. Advanced Psychology and Psychophysics.

A fuller knowledge will be expected of the subjects included in the schedule for Part I., and of current controversies in connexion with them. Further, a special knowledge will be required (i) of the physiology of the senses and of the central nervous system, (ii) of experimental investigations into the intensity and duration of psychical states, and (iii) of such facts of mental pathology as are of psychological interest. Questions will also be set relating to the philosophic treatment of the relation of Body and Mind as regards both the method and the general theory of psychology.

V. Advanced Logic and Methodology.

Students will be expected to shew a fuller knowledge of the subjects included in the schedule for Part I., and of current controversies in connexion with them, and the examination will also include the following subjects:—Symbolic Logic, Theory of Probabilities, Theory of Scientific Method, Theory of Statistics.

VI. Advanced Political Economy.

Students will be expected to shew a fuller and more critical knowledge of the subjects included in the schedule for Part I. The examination will also include the following subjects; the diagrammatic expression of problems in pure theory with the general principles of the mathematical treatment applicable to such problems: the statistical verification and suggestion of economic uniformities: and a general historical knowledge (a) of the gradual development of the existing forms of property, contract, competition and credit; (b) of the different modes of industrial organization; and (c) of the course and aims of economic legislation at different periods, together with the principles determining the same.

 

Remarks on the above Schedules.

Students will probably find it best to begin with Political Economy and Logic. The undisputed evidence which a large portion of Logic possesses peculiarly adapts it for beginners: and the principles of Political Economy, while they can be grasped with less effort of abstraction than those of Philosophy, also afford greater opportunity of testing the clearness of the student’s apprehension by their application to particular cases.

Accordingly, in the particular suggestions which follow as to the method of study to be adopted in the different departments respectively, we may conveniently take the subjects in the following order: Logic and Methodology, Political Economy, Psychology1, Metaphysics, Politics, Ethics, and History of Philosophy1. Care has been taken to distinguish the recommendations addressed to students who only aim at the more elementary or more general knowledge which will suffice for Part I., from those which relate to the more full and detailed knowledge—either of the subjects themselves or of the history of doctrine relating to them—which is required in Part II.

1To avoid repetition the reading in these subjects for both parts is included under one head.

 

1. Logic and Methodology.

There are important differences in the range of meaning with which the term Logic is used. In its widest signification, it includes two departments of inquiry which may be to some extent studied independently of each other. The first of these,—to which alone the name Logic was formerly applied, and which still, according to some writers, should be regarded as constituting the whole of Logic,—is concerned with reasonings only in so far as their validity can be determined a priori by the aid of laws of thought alone.

This study is often called, for distinction’s sake, ‘Formal Logic;’ on the ground that it is concerned with the form and not with the matter of thought; i.e. not with the characteristics of the particular objects about which the mind thinks and reasons, but with the manner in which, from its very nature, its normal thoughts and reasonings about them are constructed. It is with this branch that the student should commence, familiarising himself with it by the aid of some elementary hand-book, e.g. Jevons’s Elementary Lessons in Logic, or Fowler’s Deductive Logic.

He should then take Keynes’s Formal Logic as his text-book, consulting other works on the subject when he finds them there referred to, and, in particular, working out a good number of the examples and problems that are set.

The latter portion of Jevons’s Lessons or Fowler’s Inductive Logic may serve as an introduction to Mill’s Logic for those who shrink from facing Mill’s two volumes at once. This work has a much wider scope than that of Formal Logic, as above explained; and in fact deals at length with topics that do not so properly belong to Logic— even according to Mill’s own definition of Logic—as to Methodology, or the theory of the intellectual processes by which the truths of the different sciences have been reached in the past, and may be expected to be reached in the future. It should be observed also that even when Mill is apparently discussing the same topics as those discussed by the formal logicians, he will often be found to treat them in quite a different spirit, and from a different point of view.’ A clear apprehension of this difference can only be attained in the course of the study itself: but it is well that the student should be prepared for it at the outset. The greater portion of Jevons’s Principles of Science is devoted to the description and analysis of the methods of the physical sciences, and contains an almost unique collection of interesting and valuable scientific illustrations. Dr Venn’s Empirical Logic, published since the schedule was issued, should be read carefully either along with or after these works by Mill and Jevons. Whewell’s Novum Organon Renovatum should be consulted in connexion with Mill’s Logic. It deals more distinctly and explicitly with the methodological topics treated of in Mill’s book: and the student’s grasp of the subject will be materially aided by a careful comparison of the doctrines of the two writers.

The majority of the more advanced works fall into two sections: those which are read mainly for their own historic interest or the historic information which they contain; and those which require some knowledge of mathematics or physical science, as analysing the methods, or appealing to the notation of, those sciences. In the former class Bacon’s Novum Organon claims attention from its importance in the development of English scientific speculation. The best brief introduction to it is still to be found in the essay by R. L. Ellis, in the first volume of the collected works of Bacon by him and Mr Spedding. Much valuable information and criticism is also given in Professor Fowler’s very complete edition of the Novum Organon. Ueberweg’s System of Logic is valuable to the English reader for its abundant historic references, and because it presents him with a general view of the science familiar on the continent but not readily to be gained from the ordinary English hand-books.

The student is recommended to read the logical parts of Mill’s Examination of Hamilton, less for their destructive side, in the way of criticism of Hamilton, than for the many points on which they serve to supplement Mill’s own system of Logic, and to explain the philosophic scheme which underlies that system.

Many of the advanced books on Logic which it is usual to study for the second part of the Tripos deal largely with questions pertaining to Metaphysics as described in the schedule. Among books of this class probably the Logics of Lotze and of Sigwart will furnish the best basis of study: the former is already translated and a translation of the latter is in progress. To the same class— Higher Logic it is sometimes called—belong Bradley’s Principles of Logic and Bosanquet’s Logic or Morphology of Knowledge, both of which deserve perusal.

Dr Venn’s Symbolic Logic may be taken as the best introduction to that subject and the corresponding parts of Boole’s Laws of Thought and Jevons’s Principles of Science may be studied in connexion with it. A great deal has been written on this form of Logic within the last few years and the student will find a full bibliography in Schroder’s Vorlesungen über die Algebra der Logik, Band i. 1890.

Dr Venn’s Logic of Chance may serve in like manner as an introduction to the Theory of Probabilities and the Theory of Statistics. It aims at being within the comprehension of those who have only an elementary knowledge of mathematics. Two of the best books dealing specially with statistics are Maurice Block, Traité théorique et pratique de statisque 1878, and Georg Mayr, Die Gesetzmässigheit im Gesellschaftsleben 1877.

In addition to the books already mentioned on the subject of Higher Logic and Method the two large volumes by Wundt—Logik: Erkenntnisslehre; Logik, Methodenlehre—may be consulted and will serve to introduce many other books dealing with special questions to the notice of the student.

2. Political Economy.

Of the books included in the syllabus drawn up by the Board, Mill’s Principles of Political Economy and Sidgwick’s Principles of Political Economy alone cover the whole ground as defined by the schedule for Part I. of the Moral Sciences Tripos. It will be observed, however, that only Books III. and V. of the former are recommended, and that only a portion of the latter is included in the list of works which all candidates are expected to study in detail. The reason for this, so far as Mill is concerned, is the recognition that substantial corrections are required in his general theory of Distribution. The need of such corrections was, indeed, admitted by Mill himself some time before his death; but he never faced the task of rewriting his treatise from the new point of view which he had gained. Nevertheless if the student will remember that many of the positions taken up require important modifications, he will do well to begin with a perusal of Mill’s work in order to obtain a first general survey of the subject. Professor Sidgwick’s treatise is more difficult, and should therefore be taken at a somewhat later stage.  Assuming that Mill has been read so as to gain a general idea of the ground to be covered, but without any considerable amount of attention having been paid to points of detail, the student should seek thoroughly to master Marshall’s Economics of Industry. This work should be supplemented by Walker on the Wages Question and on Land and its Rent. Here and elsewhere the differences of view between the authors read should be carefully noted and thought over. The student will find it specially useful to make a critical comparison of the theories of wages and profits laid down by Mill, Marshall, and Walker, observing both their points of resemblance and their points of difference.

The study of the general theory of Distribution and Exchange may later on be completed, so far as Part I. of the Tripos is concerned, by a careful study of Marshall’s Principles of Economics, Vol. I., and of the corresponding portions of Sidgwick’s Principles of Political Economy. Attention may be specially called to the part played by the principle of Continuity in the former work, and to the recognition by both writers of the complicated interactions between economic phenomena, which render it impossible to sum up in cut-and-dried formulas the conclusions ultimately reached.

Passing to the subject of currency and banking, the student should read Jevons’s Money and the Mechanism of Exchange and Nicholson’s Money and Monetary Problems, Part I., which usefully supplement one another. The former is mainly of a descriptive character, while the latter deals with the more difficult problems relating to the principles that regulate the value of money. Bagehot’s Lombard Street treats of the English banking system with special reference to the position of the Bank of England in the London Money Market. The above may be supplemented by Walker’s Money, Trade, and Industry, and by the corresponding chapters of Sidgwick.

The subject of international values and allied topics may be studied in Bastable’s Theory of International Trade. Goschen’s Foreign Exchanges is in some respects difficult, but it should on no account be omitted; it will give the student a fuller grasp of facts, the apprehension of which is of fundamental importance both for the theory of foreign trade and for the theory of money. Giffen’s Essays in Finance, Second Series, may be read with advantage at about this point.

Passing from economic science in the stricter sense to its applications, and considering Government interference in its economic aspects and the principles of taxation and State finance, Mill, Book V. should be supplemented by Sidgwick, Book III  A study of Professor Sidgwick’s method will afford the student a most valuable training in the philosophic treatment of practical questions.

Some of Macmillan’s English Citizen Series may here be consulted; e.g., Wilson’s National Budget, Fowle’s Poor Law, and Jevons’s State in relation to Labour. The subject of Free Trade and Protection is treated in detail, from the Free Trade standpoint, in Fawcett’s Free Trade and Protection and in Farrer’s Free Trade versus Fair Trade. Current socialistic doctrines will be found fully described and criticized in Rae’s Contemporary Socialism. The student will learn much from following the economic movements of his own time; but he must be cautioned against giving undue attention to controversial questions of the day, such as bimetallism, socialism, &c. Time may thus be occupied, which should be given to systematic study of the foundations of the science.  The scope of Political Economy, the methods employed in it, and its relations to other sciences, are treated of in Marshall’s Principles of Economics, Book I., and in Sidgwick’s Introduction. Cossa’s Guide to the Study of Political Economy and Keynes’s Scope and Method of Political Economy may also be consulted.  It would be out of place here to attempt to give detailed advice to students taking Advanced Political Economy in Part II. of the Tripos. They may be warned, however, of the importance of not neglecting to go over again more than once the ground they have already covered. They will thus familiarise themselves with the general principles of economic reasoning, and will know how to set about the solution of any new and complex problem that may be placed before them. In particular they should return again and again to the more difficult parts of Marshall and Sidgwick, and—in connexion with the former—should study the application of symbolic and diagrammatic methods to Economics. From this point of view Cournot’s Principes Mathématiques de la Théorie des Richesses and Jevons’s Theory of Political Economy should be read. Some of Jevons’s doctrines are expounded with great lucidity in Wick- steed’s Alphabet of Economic Science, and this book may be specially recommended to those students whose mathematical reading is not so far advanced as to render needless an elementary exposition of the conceptions upon which the Differential Calculus is based. A critical study of Ricardo’s Principles of Political Economy and of his Tracts on Money must not be omitted; while in order to obtain some knowledge of recent developments of theory by his latest critics—the economists of the Austrian school—reference may be made to Böhm-Bawerk’s Capital and Interest and Positive Theory of Capital, the former of which is however open to the charge of doing less than justice to the writer’s predecessors.

Every student of Economics ought to read at least some portions of the Wealth of Nations, Professor Nicholson’s edition of which, with Introduction and notes, may be recommended. Many real and fundamental divergences from modern theory will be observed, especially in Books I. and II.; but Adam Smith is generally stimulating and instructive even when the doctrines which he lays down need correction. As regards the course of economic history, especially the course and aims of economic legislation at different periods, Books III., IV., and V. are specially important. For further historical study choice may be made from the following: Ashley, Economic History; Cunningham, Growth of English Industry and Commerce; Maine, Village Communities; Seebohm, The English Village Community; Brentano, On the History and Development of Gilds; Gross, The Gild Merchant; Rogers, Six Centuries of Work and Wages; Toynbee, The Industrial Revolution; Levi, History of British Commerce. Blanqui’s History of Political Economy in Europe and Ingram’s History of Political Economy may also be read ; but it must be remembered that the latter is written from the point of view of the Comtist critic and is strongly partisan. The use of statistics in Economics may be studied in Jevons’s Investigations in Currency and Finance (edited by Professor Foxwell) and in both series of Giffen’s Essays in Finance.

A long list of useful books on various departments of Political Economy might here be added, but it must suffice specially to mention the collected Essays of J. S. Mill, Bagehot, Cairnes, and Cliffe Leslie. Portions of the following may be consulted in libraries on particular points: Eden, State of the Poor; Porter, Progress of the Nation; Tooke and Newmarch, History of Prices; Schönberg, Handbuch der politischen Oekonomie.

3. Psychology.

The Science of Psychology has made considerable advances in recent times; so that the work of earlier English writers on this subject—including even Locke—has now chiefly a historic interest. Still the student must not expect to find a perfectly clear consensus among its expositors as to its method and principles. Modern Psychology though rich in facts, is poor in definitions; and the greater part of its laws are merely empirical generalisations still awaiting further explanation.

The great difficulty in attempting to prescribe a course of reading in Psychology is to avoid repetition and what is worse—a bewildering divergence of opinion at least as regards details. There is now an English translation of Hoffding’s Outlines and with this or with Dewey’s Psychology the student had better begin. He may then read Sully’s Outlines and Bain’s works as supplementary to his first text-book. The article Psychology in the ninth edition of the Encyclopaedia Britannica is most likely to be of service to him when he feels the need of getting his psychological knowledge into more scientific form.

Psychophysics, which treats of the phenomena of mind in relation to the changes in the organism which accompany them, is a branch of Psychology to which every one who studies this subject at all, must give some attention. Here, however, we have to distinguish between the philosophical discussion of the general relation of mind and body, and a knowledge of the particular connexions between mental and corporeal phenomena. The former subject belongs rather to Metaphysics; an elementary knowledge of the latter may be gained from Prof. Ladd’s Outlines of Physiological Psychology which has just appeared and may be taken to supersede his larger Elements: it will also probably enable the student to dispense with Bernstein’s Five Senses of Man.

The advanced student of Psychology will find it a great advantage if he is able to read German. In this case Volkmann’s Lehrbuch der Psychologie will be most useful to him as a repertory of facts and opinions, besides giving the ablest exposition of the Herbartian Psychology—the Psychology which has been the most fruitful of results, at any rate in Germany. Closely related to this school is the teaching of Lotze, which should on no account be passed over: one section of his Metaphysik2 is devoted to psychological questions. His Medicinische Psychologie, long out of print and very scarce, is still worth attention: a portion of it has recently appeared in French. Drobisch’s Empirische Psychologie and Waitz’s Grundlegung, and Lehrbuch der Psychologie are works to which the student who is not pressed for time should also pay some attention. Morell’s Introduction to Mental Philosophy on the Inductive Method, is avowedly largely indebted to Waitz, Drobisch and Volkmann. It may be recommended especially to the English student who is unacquainted with German; also Ribot’s La Psychologie allemande contemporaine, which contains fair summaries of the leading doctrines of Herbart, Fechner, Lotze, Wundt and others.

2There is an English translation of this published by the Clarendon Press.

In the two large volumes of Prof. William James, Principles of Psychology, the advanced student has the means of forming an ample acquaintance with existing doctrine and current controversies. From Wundt’s Grundzüge der physiologischen Psychologie (3rd ed. 1887: French translation of the 2nd ed. 1880) the same help may be obtained as regards Experimental Psychology3. But the special knowledge required concerning the central nervous system will be got better from Dr Foster’s Text-book of Physiology, 5th ed. Parts III. and IV. There is no single book giving such facts of mental pathology as are of psychological interest. This is a department to which the French have especially devoted themselves. The following works may be mentioned :—Janet (Pierre), L’automatisme psychologique; Ribot, Les Maladies de la Mémoire; Les Maladies de la Volonté; Les Maladies de la Personnalité. Several of Ribot’s books are to be had in English.

3There is now (1891) some prospect of a Psychophysical laboratory in Cambridge. Prof. Foster has already set apart a room for the purpose and the University has made a small grant towards the purchase of apparatus. Some instruments too have been given by private donors.

Many works have recently appeared on what might be called Comparative Psychology. The subject is one that it is difficult to lift above the level of anecdote, but none the less it deserves attention. Romanes’ Mental Evolution (2 vols.) and Prof. Lloyd Morgan’s Animal Life and Intelligence will be found interesting in this department of psychology.

The origin of language and the connexion of thought and language form an important chapter of psychology and are dealt with in special works, in most of which, however, either the psychology or the philology leaves much to be desired. A general oversight of theories will be found in Marty, Ueber den Ursprung der Sprache. Max Müller’s Science of Thought, Egger’s La Parole intérieure, and Steinthal’s Einleitung in die Psychologie und Sprachwissenschaft are noteworthy.

4. Metaphysics.

The student who has already gone through a course of reading—accompanied, it is to be hoped, by oral instruction—in Psychology, will already have had his attention directed to some extent to the topics included in the schedule of Metaphysics. That this must be the case will appear, indeed, from a comparison of the two schedules of Psychology and Metaphysics respectively, independently of the books recommended. Thus it would be impossible to treat of the “data and fundamental conceptions” of Psychology, of “perception,” “intuition of things,” or “thought and abstraction,” without at the same time discussing to a certain extent the “nature and origin of knowledge” and the “relation of the individual mind to the universe,” &c.

But the principle of the separation adopted in the Cambridge scheme may perhaps be made partially clear without entering on matters of controversy; and it will probably assist the student to keep it in view from the outset. He must understand then, that Psychology deals with cognitive acts or states primarily as one class (among others) of mental phenomena; as forming part of the stream of consciousness of certain particular minds, whose processes the student is able to observe directly or indirectly. Whereas in the investigation of knowledge and its conditions that constitutes one department of Metaphysics, the same acts or states are primarily considered as representative of or related to the objects known. Or—to present substantially the same difference in another form—in investigating perceptions or thoughts from the point of view of Psychology we are no more occupied with those that are real or valid, than with those that are illusory or invalid—in fact, the latter may often be more interesting as throwing more light on the general laws of human minds: whilst as metaphysicians we are primarily concerned with real knowledge or truth as such, and treat of merely apparent knowledge or error only in order to expose and avoid it.

Under the head of Metaphysics it is intended to require a general knowledge (1) of what is coming to be called Epistemology and (2) of the speculative treatment of the fundamental questions concerning Nature and Mind prevalent at the present time, without direct reference to the History of Philosophy. Still it can scarcely be denied that the student who purposes to take up the History of Philosophy as a special subject will find some acquaintance with this history a help to the understanding of Philosophy in its most recent phases. If for no other reason this will be found true from the simple fact that nearly every writer on philosophical problems assumes some familiarity on the part of his readers with the writings of his predecessors. In particular those who are taking up both subjects and have to begin their work in private—during the Long Vacation, for instance— will find it advantageous to take up certain parts of the general history before attempting to do much at Metaphysics as outlined in the schedule, and especially to take up those parts of it that relate to the Theory of Knowledge. For these at least a general acquaintance with Hume and Kant will be helpful. Still those who are meaning to specialise in other directions can begin without this preliminary study of the history, and may reasonably count on getting what they need in this respect from lectures. Such may read some brief exposition of the Kantian philosophy, the three constructive chapters in Mill’s Examination of Hamilton (entitled Psychological Theory of Matter, Mind &c.), Mr Herbert Spencer’s First Principles and Lotze’s Metaphysics, as a preparation for lectures. Those familiar with German will find Riehl’s Philosophische Kriticismus, Kroman’s Unsere Naturerkenntniss and Wundt’s System der Philosophie useful books.

5. Politics.

The student will find all the aspects of this subject most fully dealt with in Dr Sidgwick’s Elements of Politics. This work is written from the Utilitarian point of view: the following books written from the same general standpoint may be read along with it:—Mill’s Utilitarianism, Chap, V., and Representative Government, Bentham’s Principles of Morals and Legislation, Principles of the Civil Code and Fragments on Government, and Austin’s Jurisprudence. For a treatment of the subject from a different point of view, the student may be recommended to read Green’s Lectures on Political Obligation (in the 2nd volume of his Collected Works); also Ritchie’s Principles of State Interference. Mr Herbert Spencer’s writings may also be profitably consulted, especially his Sociology, Part II. and Part V., and his volume on Justice.

The following works will be found useful for occasional reference—Bluntschli, Lehre vom modernen Staat, Vol. I. (authorised English translation published by the Clarendon Press), Maine’s Ancient Law, Early History of Institutions, and Popular Government, Stephen’s English Thought in the Eighteenth Century, Spencer’s Man versus the State, Dicey’s Law of the Constitution, Bryce’s American Commonwealth, Stirling’s Philosophy of Law, Hume’s Essays, II.—IX., and XII., Locke’s Essay on Civil Government, &c.

To those who have time and inclination to go beyond the limits of the schedule and study the history of the subject Janet’s Histoire de la Science Politique may be recommended. But some acquaintance with the original works of the more important writers is desirable—e.g., the Republic and Laws of Plato, the Ethics and Politics of Aristotle, Hobbes’s Leviathan, Montesquieu’s Esprit des Lois, Rousseau’s Contrat Social, Burke’s Thoughts on the Present Discontents and Reflections on the Revolution in France, Hegel’s Rechtsphilosophie and Philosophy of History, Comte’s Philosophie Positive, Part VI. Physique Sociale, (Vol. II. of Miss Martineau’s Translation), and Politique Positive (translated by various writers). Students ought not, however, to attempt to master the details of any of these works. On Comte, Caird’s Social Philosophy of Comte will be found useful.

6. Ethics.

Every student will naturally desire to have from the first a clear idea of the scope of the science. Unhappily there is no book from which such an idea can be gained in a quite satisfactory manner: for the degree of emphasis which is laid on different questions, and even to some extent the nature of the questions themselves, vary considerably in the different schools of ethical thought. A general sketch of the topics discussed by modern ethical writers may be found in such a book as Dewey’s Outlines of Ethics. But the significance of the various questions can hardly be fully appreciated without some reference to the history of the subject. It would be well therefore to read ch. IV. of Dr Sidgwick’s short History of Ethics at an early stage. This book is almost entirely limited, in the modern parts, to the history of English thought; but this deficiency may easily be corrected as the student proceeds with his work.

After having in this way acquired a general idea of the subject, the student may proceed to consider, more in detail, the various points of view from which the subject has been approached. He will soon find that the main schools of ethical thought group themselves naturally under the following heads:—(1) Intuitional, (2) Utilitarian, (3) Evolutionist, (4) Idealistic. As the student advances, he may be led to see that the distinction between these schools is not an absolute one, and that to a considerable extent their views overlap. But at first it may be convenient to study them separately. As representative of the Intuitional theory, the student may read the part of Martineau’s Types of Ethical Theory which contains the statement of the writer’s own doctrine— i.e. especially Part II., Book I., and perhaps the chapters on Intuitionism in Calderwood’s Handbook of Moral Philosophy; while, as representative of the Utilitarian point of view he may take Mill’s Utilitarianism, together with the criticism and further development of Mill’s ideas in Dr Sidgwick’s Methods of Ethics. The criticisms of Intuitionism in Dr Sidgwick’s Methods of Ethics and of Utilitarianism in Green’s Prolegomena to Ethics and in Sorley’s Ethics of Naturalism ought also to be studied in this connexion. With reference to Evolutionist Ethics, Mr Herbert Spencer’s Data of Ethics ought to be carefully studied, while those who have time may consult in addition such books as Mr Leslie Stephen’s Science of Ethics, Mr Alexander’s Moral Order and Progress, and Höffding’s Ethik. For criticism of the Evolutionist Ethics, reference may be made to Green’s Prolegomena to Ethics, Sidgwick’s Methods of Ethics, and Sorley’s Ethics of Naturalism. The Idealistic Ethics rests primarily on the teaching of Kant, and the best introduction to it may be found in his Metaphysic of Morals (of which Abbott’s translation is the most accurate). Dewey’s Outlines of Ethics are also written from this point of view. So are Bradley’s Ethical Studies and Green’s Prolegomena to Ethics; but only certain portions of these books can be studied with advantage by those who are not at the same time studying Metaphysics. The most complete exposition and criticism of Kant’s ethical position is to be found in the 2nd volume of Caird’s Critical Philosophy of Immanuel Kant. Among recent books Paulsen’s System der Ethik is singularly rich and suggestive.

Students who are reading Metaphysics in conjunction with Ethics will naturally bestow more attention on the fundamental difficulties of the subject than other students can be expected to give. On this, as on other aspects of Philosophy, the works of Kant will necessarily be studied with care. Green’s Prolegomena to Ethics may be strongly recommended as the most important English book dealing with the relation of Metaphysics to Ethics. Few students will find time to acquire more than a general knowledge of such speculations as those of Plato, Spinoza, and Hegel.

Students of Politics, on the other hand, may be expected to be especially interested in the relations of Ethics to the Philosophy of society and of the state. Among modern writers, the Germans have devoted most attention to this aspect of the subject, from Hegel’s Rechtsphilosophie onwards. Paulsen’s System der Ethik may be recommended; also Hoffding’s Ethik, translated from the Danish. In English, Green’s Prolegomena to Ethics and Lectures on Political Obligation (in the 2nd volume of his Collected Works) may be consulted. Several writers of the Utilitarian school have also dealt with this subject. Bentham’s Principles of Morals and Legislation and Principles of the Civil Code will be found interesting; and highly instructive discussions of various aspects of the subject are to be found in Dr Sidgwick’s Methods of Ethics, Principles of Political Economy, and Elements of Politics.

7. History of Philosophy.

A particular portion4 of the whole subject will be selected from time to time, which the student will be required to know thoroughly: and he should endeavour to avail himself of this special knowledge so as to make his general survey of the course of metaphysical speculation, in ancient or modern times, less superficial than it would otherwise be; by keeping prominently in view the connexion of the doctrines specially studied with antecedent and subsequent thought.

4The special subject selected for the examination in 1892 is, The Philosophy of Kant; and for 1893:—European Philosophy from 1600 to 1660 with special reference to Descartes, Bacon and Hobbes.

There are no good general histories of Philosophy by English writers, but there are translations of several standard histories by Germans. Of these Schwegler’s, though very brief, is good for a general survey. Erdmann is fairly full and would be excellent if not obscured in parts by careless translation. Ueberweg attempts—in the style of Prof. Bain’s Ethical Systems—to summarize in the writers’ own words but not always with Prof. Bain’s success.

The student should try, if possible, to read something of the philosophical classics at first hand. Such short works, for example, as Descartes’ Discourse on Method or his Meditations, Berkeley’s Hylas and Philonous, Hume’s Treatise of Human Nature, Vol. I., and Kant’s Prolegomena to every future metaphysic, might be read.

Prof. Sidgwick’s History of Ethics will be found the most useful text-book; and may be supplemented by Jodl’s Geschichte der Ethik. Help will also be obtained from Mr Leslie Stephen’s History of English Thought in the Eighteenth Century; Martineau’s Types of Ethical Theory; the Introduction to the second volume of Hume’s Works in the edition of Green and Grose (reprinted in the first volume of Green’s Collected Works); and Wundt’s Ethik, Abschnitt II.

General Remarks on Method and Time of Study.

1. Method of reading.

Perhaps the best plan upon commencing a new work is to read it rapidly through first, in order to form a general notion of its bearing and to catch its principal points. The first reading may be too careful. The student may find himself face to face with difficulties, which, although really only of an incidental character, may cause him to misconceive the proportions of the whole, if he have formed a determination—in itself praiseworthy —to master every part upon first acquaintance. Upon the second reading, an analysis should be made of the more important works, but care should be taken that it do not become long and wearisome: it should be distinctly of the nature of a summary, and not a mere series of extracts. Such analyses are almost indispensable, to enable the student to perform, in the concluding period of his course, an effective and systematic revision of the whole results of his study. Further, at the second time of reading, the student should take careful note of any difficulties that he may find in understanding the doctrines or criticisms propounded, or any doubts that may occur to him as to their correctness. He need not be afraid of losing time by writing down in his note-book as precise a statement as possible of his doubt or difficulty; since no exercise of his mind is likely to be more conducive to his attaining a real grasp of his subject. He will sometimes find that the mere effort to state a difficulty clearly has the effect of dispelling it; or, if not at the time, at any rate when he recurs to the point on a subsequent day he will often find the problem quite easy of solution: while in the cases where his perplexity or objection persists, a clear statement of it will generally bring his mind into the most favourable condition for receiving explanations from his teacher.

In subjects so full of unsettled controversy as the Moral Sciences generally are, a student must be prepared to find himself not unfrequently in legitimate disagreement with the authors studied; (though he should not hastily conclude that this is the case, especially during the earlier stages of his course). In all except quite recent books, he is likely to find some statements of fact or doctrine which all competent thinkers at the present day would regard as needing correction; while in other cases he will find, on comparing different works, important discrepancies and mutual contradictions on points still debated between existing schools of thought. He should carefully note the results of such comparisons; but he should not content himself with merely committing them to memory; rather, he should always set himself to consider from what source each controversy arises, what its relation is to the rest of the doctrine taught in the works compared, and by what method the point at issue is to be settled.

It will generally be found convenient to put in tabular form any divisions or classifications which , are met with in the books read. Such lists are not indeed necessarily of great importance in themselves, but they furnish a convenient framework for criticisms and comparisons of the methods and results of various writers.

The constant practice of writing answers to papers of questions and longer compositions on special points arising out of the subjects studied, cannot be too strongly urged. Many minds are hardly able to bring their grasp of subtle or complicated reasonings to the due degree of exactness and completeness, until their deficiencies in these respects have been brought home to them by exercises in written exposition.

2. Time of study.

A student who is in a position to begin effective work in his first term may hope to be prepared for Part I. of the Tripos in his second year, and may take Part II. at the end of his third, assuming, of course, in both cases that he does a reasonable amount of private study during Long Vacations. But it is desirable, when circumstances admit of it and especially if two of the special subjects are taken up, to devote not less than two years to the work of the Second Part.

Those who have taken honours in other Triposes at the end of their second year, will be able afterwards to prepare fully for either part of the Moral Sciences Tripos at the end of their fourth year, without being inconveniently pressed for time—supposing them to read steadily in their second, as well as in their third Long Vacation. If, however, the period entirely devoted to this preparation is only one year—as must be the case with students who take some other Tripos at the end of their third year—it is very desirable that some part of the subjects should have been read at an earlier stage of the course.

The Special Board for Moral Science publishes annually, towards the end of the Easter Term, a list of lectures for the coming academical year in different departments of the Moral Sciences. These lectures are, generally speaking, so arranged as to provide all the oral instruction required by students at different stages of their course.

Source:  Dr. J. Ward, Trinity College, editor: Part VIII. The Moral Sciences Tripos  in The Student’s Guide to the University of Cambridge (5th edition, rewritten). Cambridge (U.K.): Deighton, Bell and Co., 1891.

 

Image Source:  Illustration by Edward Hull “The New Court, Trinity College Cambridge” from page 81 of  Alfred J. Church, The Laureate’s Country. London: Seeley, 1891.

Categories
Chicago Statistics Suggested Reading Syllabus

Chicago. Econometrics sequence (2 quarters). Christ, 1957

 

From 1955 through 1961 the University of Chicago economics Ph.D. alumnus (1950) and early Cowles Commission researcher, Carl Christ, was associate professor at the University of Chicago. I stumbled upon the following reading lists for his two quarter econometrics sequence from 1957 filed away in Milton Friedman’s papers along with Econ 300A and 300B (Price Theory and Distribution)  reading lists.

It is interesting to see that input-output theory and linear programming are still considered parts of “econometrics” at even this relatively advanced date. 

The next post will provide life and career information as well as anecdotes shared by former students and colleagues following his death in April 2017.

___________________

Economics 314 and 315
Econometrics and Special Topics in Econometrics
READING LISTS
Winter and Spring 1957
Mr. Christ

 

  1. Econometrics “Texts”

Chiefly for 314:

Tinbergen, Jan, Econometrics.

For both 314 and 315:

Tintner, Gerhard, Econometrics.
Klein, Lawrence R., A Textbook of Econometrics.
Hood, William C., and Tjalling C. Koopmans, Studies in Econometric Method (Cowles Commission Monograph 14). Especially chapters 1, 2, 4, 5, 6, 9. (Chapter 6 is chiefly for Economics 315).

  1. Statistical Inference (Including Regression and Correlation)

In addition to relevant parts of books listed above, the following are useful. They are approximately in increasing order of difficulty.

Chiefly for 314:

Wallis, W. Allen, and Harry V. Roberts, Statistics: A New Approach. Especially the following sections and chapters.
2.8; 4.5-6; 5; 6.1, 6.5; 8.7; 9; 10.9-12; 12; 14.1-2, 14.5-6, 14.8; 15; 17; 18; 19
Walker, Helen M., and Lev, Statistical Inference.

For both 314 and 315:

Ezekiel, Mordecai, Methods of Correlation Analysis, 2nd edition.
Yule, George Udny, and Kendall, An Introduction to the Theory of Statistics (not the earlier book by Yule alone).
Snedecor, George W., Statistical Methods.
Fisher, Ronald A., Statistical Methods for Research Workers, 6th edition or later.
Tippett, L. H. C., The Methods of Statistics.
Hoel, Paul G., Introduction to Mathematical Statistics.

Chiefly for 315:

Anderson, R. L., and T. A. Bancroft, Statistical Theory in Research.
Mood, A. M., Introduction to the Theory of Statistics.
Wilks, S. S., Mathematical Statistics.
Cramer, Harald, Mathematical Methods of Statistics.

  1. Econometric Techniques and Problems (Including the Estimation of Parameters)

In addition to relevant sections of books cited under I and II above, see the following. Items marked with an asterisk(*) are particularly important.

Chiefly for 314:

Working, E. J., “What do Statistical ‘Demand Curves’ Show? QJE 41 (February, 1927), pp. 212-35. Reprinted in AEA Readings in Price Theory, pp. 97-115.
*Christ, Carl F., “History of the Cowles Commission,” in Cowles Commission, Economic Theory and Measurement. (20th Annual Report). Especially pp. 12-13, 30 (bottom)-41, 47 (middle)-60.
*Koopmans, Tjalling C., “Identification Problems in Economic Model Construction,” Econometrica 17 (April, 1949), pp. 125-44. Reprinted as chapter 2 in Hood and Koopmans (cited under I above), pp. 27-48.
*Marschak, Jacob, “Economic Structure, Path, Policy, and Prediction,” AER, XXXVII (May, 1947), pp. 81-4.

For both 314 and 315:

Koopmans, Tjalling C., “The Logic of Econometric Business Cycle Research,” JPE 49 (April, 1941), pp. 157-81.
*Haavelmo, Trygve, “The Statistical Implications of a System of Simultaneous Equations,” Econometrica 11 (January, 1943), pp. 1-12.
*Marschak, Jacob, “Econometric Measurements for Policy and Prediction”, Chapter 1 in Hood and Koopmans (cited under I above), pp. 1-26.
*Bennion, E. G., “The Cowles Commission’s ‘Simultaneous Equation Approach’”, Rev. Econ. and Statistics, XXXIV (February, 1952), pp. 49-56.
*Meyer, John R., and Miller, “Some Comments on the ‘Simultaneous Equations Approach’”, Rev. Econ. and Statistics, XXXVI (February, 1954), pp. 88-92.
*Bronfenbrenner, Jean, “Sources and Size of Least Squares Bias in a Two-Equation Model,” chapter 9 in Hood and Koopmans (cited under I above), pp. 221-35.
*Haavelmo, Trygve, “Methods of Measuring the Marginal Propensity to Consume,” JASA 42 (March, 1947), pp. 105-22. Reprinted as chapter 4 in Hood and Koopmans (cited under I above), pp. 75-91.
Foote, R. J., and K. A. Fox, Analytical Tools for Measuring Demand, U. S. Department of Agriculture Handbook No. 64.
*Klein, Lawrence R., “On the Interpretation of Theil’s Method of Estimation of Economic Relations,” Metro-economica 7 (December, 1955).
*Basmann, Robert, “A Generalized Classical Method of Linear Estimation of Coefficients in a Structural Equation”, Econometrica 25 (January, 1957).

Chiefly for 315 (in chronological order):

*Haavelmo, T., “The Probability Approach in Econometrics,” Econometrica 12 (1944), Supplement.
*Koopmans, Tjalling C., “Statistical Estimation of Simultaneous Economic Relationships,” JASA 40 (December, 1945), pp. 448-66.
Cochrane, Donald, and Guy H. Orcutt, “Application of Least Squares Regression to Relationships Containing Autocorrelated Error Terms,” JASA 44 (March, 1949), pp. 32-61.
Orcutt, Guy H. and Donald Cochrane, “A Sampling Study of the Merits of Autoregressive and Reduced Form Transformations in Regression Anaysis,” JASA 44 (September, 1949), pp. 356-72.
Koopmans, Tjalling C., ed., Statistical Inference in Dynamic Economic Models (Cowles Commission Monograph 10).
*Koopmans, Tjalling C., and W. C. Hood, “The Estimation of Simultaneous Linear Economic Relationships,” chapter 6 in Hood and Koopmans (cited under I above), pp. 112-99.

  1. Statistical Tests for Econometric Equations

For both 314 and 315:

Durbin, James, and G. S. Watson, “Testing for Serial Correlation in Least Squares Regression. II.” Biometrika 38 (June, 1951), pp. 159-78.
Hotelling, Harold, “The Selection of Variates for Use in Prediction,” Annals Math. Stat. 11 (1940), pp. 271-83.

  1. Aggregate Econometric Models of the U. S. Economy

For both 314 and 315:

Tinbergen, Jan, Statistical Testing of Business Cycle Theories, Vol. II: Business Cycles in the U.S.A., 1919-1932.
Klein, L. R., Economic Fluctuations in the U.S., 1921-1941 (Cowles Commission Monograph 11).
Clark, Colin, “A System of Equations Explaining the U.S. Trade Cycle 1921-1941,” Econometrica Vol. 17 (April, 1949), pp. 93-123.
Christ, Carl, “A Test of An Econometric Model for the U.S., 1921-1947,” in Conference on Business Cycles (N.B.E.R.), pp. 35-129.
Valavanis-Vail, Stefan, “An Econometric Model of Growth, U.S.A. 1869-1953,” AER 45 (May, 1955), pp. 208-21, 225-7.
Klein, L. R., and Arthur Goldberger, An Econometric Model of the U.S., 1929-1952 (Contributions to Economic Analysis, No. IX).
Fox, Karl A., “Econometric Models of the U.S., “ JPE 64 (April, 1956), pp. 128-42.
Christ, Carl F., “Aggregate Economic Models,” AER 46 (June, 1956), pp. 385-408

  1. Demand Studies

For both 314 and 315:

Schultz, Henry, Theory and Measurement of Demand.
Girshick, M. A., and Trygve Haavelmo, “Statistical Analysis of the Demand for Food,” Econometrica 15 (April, 1947), pp. 79-110. Partly reprinted as chapter 5 in Hood and Koopmans (cited under I above), pp. 92-111.
Wold, Herman, and Lars Jureen, Demand Analysis.
Fox, Karl A., The Analysis of Demand for Farm Products (U. S. Department of Agriculture Technical Bulletin No. 1081).
Working, Elmer J., Demand for Meat (American Institute of Meat Packing).
Stone, Richard N., The Measurement of Consumers’ Expenditure and Behaviour in the U.K., 1920-1938, Vol. I (National Institute of Economic and Social Research, London).

  1. Consumption Functions

For both 314 and 315:

Ferber, Robert, A Study of Aggregate Consumption Functions (N.B.E.R.).
Modigliani, Franco, and R. E. Brumberg, “Utility Analysis and the Consumption Function,” in Kenneth Kurihara, ed., Post Keynesian Economics.
Brumberg, R. E., “An Approximation to the Aggregate Saving Function,” Economic Journal 66 (March, 1956).
Nerlove, Marc, “Estimates of the Elasticities of Supply of Selected Agricultural Commodities,” Journal of Farm Economics 38 (May, 1956), pp. 496-512. Read primarily for the expectations hypothesis.
Friedman, Milton, and Gary Becker, “A Statistical Illusion in Judging Keynesian Models,” JPE 65 (February, 1957).

  1. Other Applications

Chiefly for 314:

Douglas, Paul H., “Are There Laws of Production?” AER 38 (March, 1948), pp. 1-41.
Mendershausen, Horst, “On the Significance of Professor Douglas’ Production Function,” Econometrica 6 (April, 1938), pp. 143-53.

Chiefly for 315:

Hildreth, Clifford, and Frank Jarrett, A Statistical Study of Livestock Production and Marketing (Cowles Commission Monograph 15).
Prais, S. J., and H. Houthakker, The Analysis of Family Budgets (Cambridge Univ., Dept. of Applied Economics).

  1. Input-Output

Chiefly for 314:

Evans and Hoffenberg, “The Interindustry Relations Study for 1947,” Rev. Econ. and Statistics, XXXIV (May, 1952), pp. 97-142.
Dorfman, “The Nature and Significance of Input-Output,” Rev. Econ. and Statistics, XXXVI (May, 1954), pp. 121-33.
Christ, Carl F., “A Review of Input-Output Analysis,” in Conference in Research on Income and Wealth, Studies in Income and Wealth, Vol. 18: Input-Output Analysis: An Appraisal (N.B.E.R.).

  1. Linear Programming

Chiefly for 314:

Dorfman, “Mathematical, or ‘Linear’, Programming,” AER XLIII (December, 1953), pp. 797-825.
Chipman, “Linear Programming,” Rev. Econ. and Statistics, XXXV (May, 1953), pp. 101-17.
Heady, “Simplified Presentation and Logical Aspects of Linear Programming Technique,” Journal of Farm Economics, XXXVI (December, 1954), pp. 1035-48.
Boles, “Linear Programming and Farm Management Analysis,” Journal of Farm Economics, XXXVII (February, 1955), pp. 1-24.

  1. Calculus

The following (arranged in increasing order of difficulty) are useful.

Thompson, Sylvanus P., Calculus Made Easy.
Allen, R. G. D., Mathematical Analysis for Economists.
Courant, R., Differential and Integral Calculus (2 vols.).

  1. Matrix Algebra and Determinants

In addition to the following, see appendices in Tintner and in Klein (cited under I above), and special sections in Anderson and Bancroft and in Mood (cited under II above):

Aitken, A. C., Determinants and Matrices.
Albert, A. A., Introduction to Algebraic Theories.
Ferrar, William L., Algebra.
Wade, Thomas L., The Algebra of Vectors and Matrices.
Allen, R. G. D., Mathematical Economics, Chapters 12-14.

 

Source:   The Hoover Institution Archives. Papers of Milton Friedman, Box 77, Folder 1 “University of Chicago 300A & B”.

Image Source. Detail of “Carl Christ, teaching economics-1963” (second from left at seminar table) from the Carl Christ memorial webpage of the Department of Economics, Johns Hopkins University.

Categories
Courses Harvard Suggested Reading

Harvard. Introductory Economics. Supplementary Readings, 1938-39

 

 

__________________________

…Economics A is required for admittance into every advanced course, although there are a few which allow it to be taken at the same time. It is by no means too difficult for Freshmen, may be taken by them with the consent of the instructor, and concentrators urge all Freshmen who think they may go into the field to take this course during their first year. This will enable them to begin taking advanced courses their Sophomore year, as History and Government concentrators do, and thereby allow a much wider range of study during their last two years, both in courses and in tutorial. History 1 and Government 1 are both required for concentration in Economics. The former should be taken Freshman year….

Source: Articles on Fields of Concentration Harvard Crimson, May 31, 1938.

__________________________

SUPPLEMENTARY READINGS FOR ECONOMICS A
Harvard University
1938-39

This bibliography has been prepared by members of the Economics A staff to supplement the assigned reading on the subject matter of the course. A division has been made in the reading: Part A listings are works and selections of a more general character, while those of Part B include more specialized or more advanced material. Students will also find the Encyclopedia of the Social Sciences a valuable source of information on the various topics.

Introduction and Historical Background.

A

Johnson, E. A. J., Some Origins of the Modern Economic World.

Kaempfert, W., A Popular History of American Inventions (2 vols.).

Kirkland, E. C., A History of American Life, pp. 246-339.

Lipson, E., The Economic History of England, Vol. I, pp. 347-390.

Lynd, R. and H., Middletown; and Middletown in Transition.

Mantoux, P. The Industrial Revolution in the Eighteenth Century, pp. 193-346.

Myers, G., History of Great American Fortunes.

See, Henri, Modern Capitalism.

Usher, A. P., The Industrial History of England, pp. 314-366.

Warshow, H. T., Representative Industries in the United States.

B

Bober, M. M., Karl Marx’s Interpretation of History.

Cole, A. H., The American Wool Manufacture, pp. 86-136, 219-244.

Fraser, C.E., and Doriot, G. F., Analyzing Our Industries.

Kautsky, Karl, The Class Struggle, pp. 7-87.

Usher, A. P. History of Mechanical Inventions, pp. 1-31.

 

II. Institutions.

A

Adams, C. F., Chapters on the Erie.

Arnold, T., Folklore of Capitalism.

Berle, A., and Means, G. C., The Modern Corporation and Private Property.

Hunt, B., History of Joint-Stock Corporation in England.

Laski, H. J., Rise of Liberalism.

National Resources Committee, Recent Technical Changes.

Robinson, E. A. G., Structure of Competitive Industry.

Strachey, John, The Coming Struggle for Power.

B

Dewing, A. S., Corporation Finance.

Hammond, J. L., and B., Rise of Modern Industry.

Fortune Magazine, Nov. 1936, “The United States Steel Corporation.”

Steffens, L., Autobiography.

Tarbell, Ida, History of the Standard Oil Company.

Twentieth Century Fund, Big Business, Its Growth and Its Place.

 

III. Money, Banking and International Finance.

A

Bradford, F. A., Money and Banking.

Burgess, W. R., The Reserve Banks and the Money Market (1936 ed.).

Ely, R. T., Outlines of Economics.

Feaveryear, A. E., The Pound Sterling.

King, W. T. C., History of the London Discount Market.

Meade, J. E., An Introduction to Economic Analysis and Policy, Parts I and V.

Meyers, M. G., The New York Money Market.

Moulton, H. G., The Financial Organization of Society.

Robertson, D. H., Money.

White, H., Money and Banking (Historical Sections)

B

Catterall, R. C. H., The Second Bank of the United States.

Currie, L., The Supply and Control of Money in the United States.

Federal Reserve Bulletins and Annual Reports.

Gayer, Arthur, Monetary Policy and Economic Stabilisation;  Lessons in Monetary Experience.

Hawtrey, R. G., The Art of Central Banking.

Keynes, J. M., A Treatise on Money, Vol. I, Chs. 2, 9-14.

 

IV. Value Theory.

A

Burns, A. R., The Decline of Competition, Chs. I, III, V, VIII.

Gray, Alexander, Development of Economic Doctrine.

Henderson, H. D., Supply and Demand, Chs. I-V.

Marshall, A., Principles of Economics, Book I, Chs. I, II, III; Book IV, Chs. III, XIII; Book V, Chs. III, V.

Meade, J. E., Introduction to Economic Analysis and Policy, Part II, Chs. I-IV.

B

Cassels, John, “Law of Variable Proportions,” Explorations in Economics, pp. 223-236.

Chamberlin, E., Theory of Monopolistic Competition.

Crum, Leonard, Rudimentary Mathematics for Economists and Statisticians (Quarterly Journal of Economics Supplement, May, 1938).

Keynes, J. M., “Alfred Marshall 1842-1924, “ Memorial of Alfred Marshall, A. C. Pigou editor, pp. 1-66.

Mill, J. S., Autobiography.

Robbins, Lionel, The Nature and Significance of Economic Science.

Robinson, Joan. Economics of Imperfect Competition, pp. 1-92.

Smith, Adam, Wealth of Nations, Book I, Chs. I-III.

 

V. Price Policy and Public Authority.

A

Black, J. D., Agricultural Reform in the United States.

Dennison, H. S., and Galbraith, J. K., Modern Competition and Business Policy.

Ezekiel, M., and Bean, L. H., Economic Bases for the A.A.A.

Hamilton, Walton H., and Others, Price and Price Policies.

Jones, Eliot, Trust Problem in the United States.

Jones, Eliot, and Bigham, T. C., Principles of Public Utilities.

Locklin, D. P., Economics of Transportation.

Mosher, W. E., and Crawford, F. G., Public Utility Regulation.

Lyons, L. S., and Others, The National Recovery Administration.

Nourse, E. G., Davis, J. S., and Black, J. D., Three Years of the A.A.A.

President’s Committee on Industrial Analysis, Report on the N.R.A.

Ripley, W. Z., Main Street and Wall Street.

Seager, H. R., and Gulick, C. A., Jr., Trust and Corporation Problems.

Watkins, M. W., Industrial Combinations and Public Policy.

B

Bauer, J., and Gold, N., Public Utility Valuation.

Cabinet Committee on Cotton Textile Industry, Report, Senate Document 126, 74th Congress, 1st

Daugherty, C. R., de Chazeau, M. G., and Stratton, S. S., Economics of the Iron and Steel Industry.

Wallace, Donald, Market Control in the Aluminum Industry.

Watkins, M. W., Oil: Stabilization or Conservation.

 

VI. Wages and Population.

A

Adamic, Louis, Dynamite.

Brooks, R., When Labor Organizes.

Carver, T. N., Distribution of Wealth, Ch. IV.

Henderson, H. D., Supply and Demand, Ch. IX.

Hicks, J. R., Theory of Wages, Ch. I-V.

Malthus, Thomas, Principles of Population (2nd).

Marshall, Alfred, Principles of Economics.

Taussig, F. W., Principles of Economics, Vol. II, Chs. 47, 48.

Walsh, J. R., I.O., Industrial Unionism in Action.

Wright, H., Population.

B

Millis, H. A., and Montgomery, R. E., Labor Progress and Some Basic Labor Problems (3 vols.).

National Resources Board, Problems of a Changing Population.

Perlman, S., History of Trade Unionism in the United States, Part I.

Perlman, S., and Taft, P., History of Labor in the United States 1896-1932, especially Section 4.

Robertson, D. H., Economic Fragments, “Wage Grumbles.”

Webb, S., and B., History of Trade Unionism, Chs. 1, 2, 7, 8.

Witte, E. E., The Government in Labor Disputes, Chs. 1, 2, 5, 6, 9, 13.

 

VII. Interest.

A

Fisher, Irving, Capital and Income, Chs. 1-6; Theory of Interest.

Henderson, H. D., Supply and Demand, Ch. VIII.

Taussig, F. W., Principles of Economics, Vol. II, Chs. 38-40.

B

Böhm-Bawerk, Eugen v., Positive Theory of Capital, Books 1, 2, 5, 6, 7.

Hansen, A. H., Full Recovery or Stagnation, Ch. 1 “Review of J. M. Kenyes’s General Theory etc.”

Keynes, J. M., General Theory of Employment, Interest, and Money, 13-17.

Schumpeter, J. A., The Theory of Economic Development.

Wicksell, Knut, Lectures on Political Economy, pp. 101-218.

 

VIII. Rent.

A

Carver, T. N., The Distribution of Wealth, Ch. V.

Fetter, F. A., Economic Principles, Vol. I, Part II, pp. 89-158.

George, Henry, Progress and Poverty.

Henderson, H. D., Supply and Demand, Ch. VI.

B

Marshall, Alfred, Principles of Economics, Book IV, Chs. 2, 3; Book V, Chs. 8-11; Book VI, Chs. 9, 10.

Monroe, A. E., Value and Income, Chs. V, VI, VII.

Ricardo, David, Principles of Political Economy, Chs. 2, 3; “Influence of a Low Price of Corn on the Profits of Stock,” E. C. K. Gonner, Economic Essays by David Ricardo.

 

IX. Profits.

A

Berle, A., and Means, G. C., Modern Corporation and Private Property, Book IV.

Carver, T. N., Distribution of Wealth, Ch. 7.

Henderson, H. D., Supply and Demand, Ch. VII.

Marshall, Alfred, Principles of Economics (8th), Book VI, Ch. 8.

B

Gordon, R. A., “Enterprise, Profits, and the Modern Corporation,” Explorations in Economics.

Knight, Frank, Risk, Uncertainty and Profits, Chs. 2, 9, 10.

Schumpeter, J. A., Theory of Economic Development, Chs. I-IV.

Veblen, Thorstein, Theory of Business Enterprise.

 

X. International Trade and Tariff.

A

Beveridge, Sir Wm., Tariffs: The Case Examined.

Ellsworth, P., International Economics.

Hansen, Alvin H., Commission of Inquiry on Naitonal Policy in International Economic Relations.

Harrod, R. F., International Economics.

Killough, U. B., International Trade.

Salter, Sir Arthur, Recovery, the Second Effort.

Smith, A., Wealth of Nations, Book IV.

Taussig, F. W., Tariff History of the United States; Readings in International Trade and Tariff Problems; Some Aspects of the Tariff Question.

Wallace, Henry, America Must Choose.

Whale, B., International Trade.

B

Delle Donne, O., European Tariff Policies.

Haberler, Gottfried, The Theory of International Trade.

Macmillan Report, Addendum III (Keynes)

Ohlin, Bertil, Interregional and International Trade.

Page, T. W., Making the Tariff in the United States.

Ricardo, David, Principles of Political Economy, Chs. VII, XIX, XXII.

 

XI. Public Finance

A

Clark, J. M., The Economics of Planning Public Works.

Gayer, Arthur, Public Works in Prosperity and Depression.

Gayer, Hansen et al, “Recent Depression and Public Works and Taxation,” New Republic Supplement, Feb. 1938.

Keynes, J. M., Means to Prosperity.

Robinson, M. E., Public Finance.

B

Bullock, C. J., Readings in Public Finance.

Colwyn Report, Great Britain: Report of the Committee on National Debt and Taxation, 1927.

Fagan, Elmer, and Macy, C. W., Public Finance: Selected Readings.

Lutz, H. L., Public Finance (third edition)

National Industrial Conference Board, Cost of Government in the United States 1935-37.

Silverman, H. A., Its Incidence and Effects.

Stamp, Sir J., Fundamental Principles of Taxation (second edition)

Twentieth Century Fund, Facing the Tax Problem.

 

XII. Business Cycles and Social Reform.

A

Cole, G. D. H., Principles of Economic Planning.

Ely, R. T., Outlines of Economics, Ch. 17.

Fisher, Allan, Clash between Progress and Security.

Hansen, Alvin H., Economic Stabilization in an Unbalanced World.

Meade, J. E., Introduction to Economic Analysis and Policy, Part I.

Mitchell, W. C., “Description of Cycle,” in Moulton, H. G., Financial Organization of Society.

Pigou, A. C., Socialism vs. Capitalism.

Robbins, L., The Great Depression.

Simons, H., Positive Program for Laissez-faire.

Wooton, B., Plan or No Plan.

B

Clark, J. M., Strategic Factors in the Business Cycle.

Haberler, G., Prosperity and Depression.

Hansen, Alvin H., Full Recovery or Stagnation; Business Cycles.

Keynes, J. M., General Theory of Employment, Interest, and Money.

Pigou, A. C., Economics in Practice; Economics of Welfare.

Robinson, Joan, Introduction to the Theory of Employment.

 

Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Lloyd Appleton Metzler Papers, Box 9, Folder “Econ. A”.

 

 

Categories
Harvard Radical Seminar Speakers Suggested Reading

Harvard. Critical Spirit in Economics, Grad student symposium, 1968

 

Fished out of miscellaneous items filed chronologically under the label “Harvard University Department of Economics” in John Kenneth Galbraith’s papers is the following early outline for a symposium organized by the Graduate Economics Club for the month of May, 1968. Faculty were invited to join in the discussions by the president of the Graduate Economics Club, David M. Gordon (New York Times obituary: March 19, 1996). I have yet to confirm whether any or all of the four Friday afternoon sessions actually took place. John Kenneth Galbraith sent his regrets less than a week before a session that was to consider the reception of the New Industrial State. Samuel Bowles and Herbert Gintis were on the program that also included Hilary Putnam, a philosopher of science.

_______________________

Dear faculty member,

The Graduate Economics Club is sponsoring a series of discussion during the month of May, emphasizing certain broad questions of critical perspective in economic theory.

It is our hope that these discussions will initiate and promote an open discussion and exchange of ideas among students and faculty.

Enclosed you will find an outline of the first few of these round-table discussion. Central to the success of these discussions is the participation of the faculty. We cordially invite your attendance.

All meetings will be held in Littauer, the room to be announced.

Sincerely,

Graduate Economics Club,
Dave Gordon, Pres.

_______________________

THE CRITICAL SPIRIT IN ECONOMICS

  1. The Myth of an Objective Economics: The Separation of Positive and Normative Thought.
    Friday, May 3, 2:00 – 4:00.

    1. The Ideological Element in Conceptualization and Model-Building: Professor Hilary Putnam.
      Professor Putnam, a philosopher of science and logician at Harvard, will speak on the contributions of T. S. Kuhn and Karl Popper, after which the discussion will be opened to the group.
      Readings are (starred items are most important):

      1. *T. S. Kuhn, The Structure of Scientific Revolutions, esp. chap. 2, 4, 10, 12, 13. (72 pages)
      2. *Karl Popper, The Logic of Scientific Discovery, I, II; esp. pp. 27-30, 32-34, 40-42.
      3. *Karl Marx, A Contribution to the Critique of Political Economy, Author’s Preface (Xerox, pp. 9-15).
      4. *Milton Friedman, “The Methodology of Positive Economics,” in Essays in Positive Economics.
      5. Stephen Toulman, The Philosophy of Science, chap. 2, pp. 17-56.
      6. Michael Polanyi, Personal Knowledge, chap. 2, pp. 18-32.
      7. Pratt, Raiffa and Schlaiffer, Introduction to Statistical Decision Theory, Appendix A3, esp. A3.4.
    2. Examples from Economic Literature: These readings are meant to illustrate points made in the above readings:
      1. *Roy Harrod, “Scope and Method in Economics”, Economic Journal, Sept., 1938.
      2. *Oscar Lange, “Marxian Economics and Modern Economic Thought”, Review of Economic Studies, June, 1935.
      3. *Robert Solow, “Son of Affluence”, The Public Interest, Fall, 1967.
      4. *Robin Marris, review of Galbraith’s New Industrial State, Am. Econ Review, March, 1968, pp. 240-247.
  2. Paradigms in Development Economics
    Friday, May 10, 2:00 – 4:00

    1. Tensions, Preferences and Economic Development: Sherman Robinson.
      1. *Sherman Robinson, “Tensions, Preferences and Development”, Xerox in Littauer Library.
      2. *Gunnar Myrdal, Prologue to Vol. I of Asian Drama.
    2. Development paradigms
      1. *H. Chenery, “Comparative Advantage and Development Policy”, AER, March, 1961. Reprinted in Surveys of Economic Theory, AEA
      2. *Paul Baran, “On the Political Economy of Backwardness”, in Agarwala and Singh
      3. Gunnar Myrdal, Economic Theory and Underdeveloped Regions, chap. 2, “The Principle of Circular and Cumulative Causation,” and chap. 6, “National State Policies in Under-Developed Countries.”
    3. The Relevance of Economic Theory to Economic Development: Prof. Samuel Bowles.
      1. *Gunnar Myrdal, op. cit., chap. 4, “The Role of the State” and chap. 5 “International Inequalities”
      2. *Hla Myint, “Classical Theory of International Trade and the Underdeveloped Countries”, Economic Journal, June 1958, reprinted in Readings in Economic Development, T. Morgan, 1963.
      3. Hla Myint, “The Gains from International Trade and the Backward Countries”, REStud., 1954-55, pp. 29-42.
      4. Mason, Economic Planning in Underdeveloped Areas, chap. 2, sections 2, 5.
      5. Lenin, Imperialism.
      6. *Hobson, The Evolution of Modern Capitalism, chap. X, sections 9, 10.
      7. *Aron, Peace and War, Part II, chap. IX, “On Resources”, pp. 243-278.
  1. Welfare Economics and the Value of Efficiency Criteria: Herb Gintis.
    May 17, Friday, 2:00 – 4:00
    Professor A. Bergson has kindly agreed to participate.
    Readings to be Announced.
  1. The Role of the State in Economic Theory
    Friday, May 24, 2:00 – 4:00.
    Speakers and readings to be announced.

_______________________

Carbon Copy of Galbraith’s response

April 29, 1968

Mr. Dave Gordon
Graduate Economics Club
Littauer Center M-8

Dear Mr. Gordon:

Unhappily I will be in Italy on May 3rd, so I will not be able to attend the round-table discussion on that day. I am sorry.

Yours faithfully,

John Kenneth Galbraith

 

Source: John F. Kennedy Presidential Library. Papers of John Kenneth Galbraith, Series 5. Harvard University File, 1949-1990. Box 526, Folder “Harvard University Department of Economics: General Correspondence, 1967-1974 (3 of 3)”.

Image Source: David M. Gordon in Harvard Class Album, 1964.

Categories
Bibliography Harvard Suggested Reading

Harvard. Debate Briefs on International Trade Policy, ca. 1886-96

 

Print from 1897 by J. S. Pughe in Punch. shows Uncle Sam sitting in a wooden tub labeled “Dingley Bill”, rowing with oars labeled “Monopoly” in a small pool labeled “Home Market” near a sign that states “Republican Goose Pond”. The title of the prints is “A self-evident fact” with the caption “Uncle Sam Say! I want you fellows to distinctly understand that I’m not racing with you!” Beyond the pond are several large steam ships, labeled “France, Germany, Italy, England, [and] Austria” steaming ahead of Uncle Sam. While Uncle Sam protects the home market through tariffs, European nations are expanding their global markets. (Library of Congress)

The inspiration for today’s posting comes from the announcement in late January, 2018 by U.S. President Donald J. Trump that steep tariffs would be imposed on washing machines and solar panels imported into the United States.

Below you will find transcriptions for Harvard University debating briefs on tariffs, subsidies and international trade from the last decade of the 19th century. While economics as a science has shown some considerable progress since that time, zombie ideas are resilient and continue to stalk the face of the earth in original and mutated strains. The literature cited in the briefs is taken largely from the popular periodical literature of the time or government and Congressional publications that conscientious scholars of the history of economics really need to be familiar with. Such stuff is not yet quite so neatly sorted and indexed for our purposes as to facilitate entry into flow of actual policy debates outside the academic realm. The collection of Harvard student debating briefs used here is really a treasure chest (Pandora’s box?) waiting to be opened, filled with good, bad, and ugly arguments regarding international commercial policy.

Also thanks to another of Trump’s policy initiatives, Economics in the Rear-view Mirror has provided transcriptions of analogous old debating briefs on the subject of immigration into the U.S.

The eight debate topics concerning international trade policy were:

Resolved, That the time has now come when the policy of protection should be abandoned by the United States.

Resolved, That a high protective tariff raises wages.

Resolved, That it would be to the advantage of the United States to establish complete commercial reciprocity between the United States and Canada.

Resolved, That foreign-built ships should be admitted to American registry free of duty.

Resolved, That the United States should establish a system of shipping subsidies.

Resolved, That sugar should be admitted free of duty.

Resolved, That a system of sugar bounties is contrary to good public policy.

Resolved, That a system of duties on wool and woollens is undesirable.

 

_________________________________

Briefs for Debate on Current Political, Economic, and Social Topics.

Edited by
W. Du Bois Brookings, A.B. of the Harvard Law School
And
Ralph Curtis Ringwalt, A.B.
Assistant in Rhetoric in Columbia University

With an introduction by Albert Bushnell Hart, Ph.D.
Professor of Harvard University.
(1908)

[From the Preface:]

“The basis of the work has been a collection of some two hundred briefs prepared during the past ten years [ca. 1886-96] by students in Harvard University, under the direction of instructors. Of these briefs the most useful and interesting have been selected; the material has been carefully worked over, and the bibliographies enlarged and verified….

…” the brief is a steady training in the most difficult part of reasoning; in putting together things that belong together; in discovering connections and relations; in subordinating the less important matters. The making of a brief is an intellectual exercise like the study of a disease by a physician, of a case by a lawyer, of a sermon by a minister, of a financial report by a president of a corporation. It is a bit of the practical work of life.

_________________________________

PROTECTION AND FREE TRADE.

Question: ‘Resolved, That the time has now come when the policy of protection should be abandoned by the United States.’

Brief for the Affirmative.

General references:

Frédéric Bastiat, Sophisms of the Protectionists; W. M. Grosvenor, Does Protection Protect?; Henry George, Protection or Free Trade; J. S. Mill, Principles of Political Economy, II., Bk. V., Chap. x., § 1; article on Protection in Tariff Reform Series, IV., No. 12, p. 2 (September 30, 1891); Lalor’s Cyclopædia, II., 289; Nation, XXVIII., 161 (March 6, 1879); XXIX., 338 (November 20, 1879); XXXIV., 288 (April 6, 1882) ; LXXVI., 118 (February 8, 1883); J. G. Carlisle in Congressional Record, 1891-1892, p. 6910 (July 29, 1892); D. A. Wells in Forum, XIV., 697 (February, 1893); F. A. Walker in Quarterly Journal of Economics, IV., 245 (April, 1890); Edward Atkinson in Popular Science Monthly, XXXVII., 433 (August, 1890); Senator Vest in North American Review, Vol. 155, p. 401 (October, 1892); Harper’s Weekly, XXXVIII., 819 (September 1, 1894).

  1. Protection is unsound in theory:

J. S. Mill, Principles of Political Economy, II., 532. — (a) It shuts out what is ours by nature: Sophisms of the Protectionists, pp. 73-80. — (b) It raises unnatural obstacles to intercourse: Sophisms of the Protectionists, pp. 84-85. — (c) It can only raise prices by diminishing the quantity of goods for sale: Sophisms of the Protectionists, pp. 7, 17. — (d) It endangers the interests it aims to promote: Nation, XXXVI., 118. — (e) It may transfer but not increase capital: Sophisms of the Protectionists, p. 93. — (f) The doctrine of protection for revenue is inconsistent: J. S. Mill, Principles of Political Economy, II., 538. — (g) It is anti-social: Sophisms of the Protectionists, pp. 15, 127; Nation, XXXVI., 118; XXXVIII., 161.

  1. Protection is unsound in general practice.

(a) It makes capital and labor less efficient: J. S. Mill, Principles of Political Economy, II., 532, 539. — (b) It hurts our carrying trade: Nation, XXXVI., 118. — (c) It closes against us many of the world’s best markets: J. S. Mill, Principles of Political Economy, II., 537; Nation, XXVIII., 161; XXXVI., 118.

  1. Protection is not beneficial to any class.

(a) It raises prices to consumers: Popular Science Monthly, XXXVII., 433. — (b) It does not raise the wages of laborers: Congressional Record, 1891-1892, pp. 6910-6917; Popular Science Monthly, XXXVII., 433. — (c) It hurts farmers: Nineteenth Century, XXXII., 733 (November, 1892). — (d) It hurts the community by shutting off foreign markets: North American Review, Vol. 155, p. 401. — (e) It increases the cost of materials. — (f) It does not help us against pauper labor: Popular Science Monthly, XXXVII., 433. — (g) It does not benefit the majority: Nation, LV., 299 (October 20, 1892). — (h) Infant industries are not permanently aided: Quarterly Journal of Economics, IV., 245.

  1. Protection tends to run to extremes.

(a) It perverts taxation from its proper uses: Forum, XIV., 51 (September, 1892). — (b) It creates dangerous precedents: Ibid. — (c) Industries seek permanent protection: Nation. LV., 252 (October 6, 1892). — (d) It creates monopolies.

Brief for the Negative.

General references:

S.N. Patten, The Economic Basis of Protection; H. M. Hoyt, Protection versus Free Trade; Congressional Record, 1889-1890, p. 4248 (May 7, 1890); 1891-1892, p. 6746 (July 26, 1892); J. G. Blaine in North American Review, Vol. 150, p. 27 (January, 1890); William McKinley in North American Review, Vol. 150, p. 740 (June, 1890); R. E. Thompson, Social Science and National Economy, pp. 243-278; Lalor’s Cyclopædia, III., 413; Van Buren Denslow, Principles of Economic Philosophy, Chaps. xiii., xiv., xv., xvi.

  1. The policy of protection is sound in principle.

(a) It enables a country to fix the terms of exchange in foreign trade. — (1) Foreign demand for our commodities is necessarily great. — (2) Protection lessens our demand for foreign commodities. — (b) Protection is the best means of increasing the consumer’s rent.

  1. The policy of protection has proved beneficial in practice.

(a) Without it no country has secured a symmetrical development of its industries: Social Science and National Economy, p. 267. — (b) Every period of protection in the United States has been followed by great material prosperity.

  1. Protection secures a home market for commodities incapable of transportation abroad:

E.E. Hale, Tom Torrey’s Tariff Talks. — (a) It enhances values, especially the value of land: J. R. Dodge, How Protection Protects the Farmer.

  1. A protective tariff does not raise prices.

(a) The establishment of a new industry has invariably been followed by lower prices: Congressional Record, 1889-1890, p. 4248.—. (1) Steel rails.—(2) Glass and earthen ware.—(3) Wool.— (4) Tin-plate.

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THE TARIFF AND WAGES.

Question:Resolved, That a high protective tariff raises wages.’

Brief for the Affirmative.

General references:

S. N. Patten, The Economic Basis of Protection, pp. 54-80; Lee Meriwether, ‘How Workingmen Live in Europe and America,’ in Harper’s Magazine, LXXIV., 780 (April, 1887); R. P. Porter, Bread Winners Abroad (People’s Library), Chaps. xvi., xxviii., xlix., li., liii., lvi., lxvi., lxvii., lxxxiv., civ.; Van Buren Denslow, Principles of Economic Philosophy, pp. 623-627.

  1. A high protective tariff raises wages theoretically.

(a) It causes more employers to compete for the hire of labor.—(1) By increasing the number of occupations and enterprises that can be carried on: R. E. Thompson, Social Science and National Economy, p. 248; Principles of Economic Philosophy, pp. 623-624. (b) It increases the amount of money available for the compensation of labor.—(1) By increasing the profits of manufacturers: Principles of Economic Philosophy, pp. 626-627. (c) It enables laborers to share in the natural resources of the country.—(1) By preventing competition with cheap foreign labor: The Economic Basis of Protection, pp. 64-70.

  1. A high protective tariff raises wages practically.

(a) In the United States, which furnishes the best example of a protective tariff, money wages are higher than in Europe.— (1) This is shown by the opinions of writers: Principles of Economic Philosophy, p. 527; Bread Winners Abroad; Consular Reports of the United States, No. 40, p. 304 (April, 1884). —(2) It is shown by the opinions of manufacturers: John Roach in International Review, XIII., 455 (November, 1882); J. M. Swank, Our Bessemer Steel Industry, p. 23; letters from the National Association of Wool Manufacturers and the Titus Sheard Co. in Congressional Record, 1891-1892, p. 6751 (July 26, 1892). (b) Wages have risen in other countries under a protective system. — (1) In Germany: Principles of Economic Philosophy, pp. 523-524; Consular Reports of the United States, No. 42, pp. 12, 13, 15 (June, 1884).—(2) In Canada: Principles of Economic Philosophy, pp. 666-668. (c) Real wages are higher in the United States than in Europe.—(1) An American workman can save more than a European: Consular Reports of the United States, No. 40, p. 304.—(2) His standard of living is higher: Harper’s Magazine, LXXIV., 780.

Brief for the Negative.

General references:

F. W. Taussig in Forum, VI., 167 (October, 1888); W. G. Sumner in North American Review, Vol. 136, p. 270 (March, 1883); J. Schoenhof, The Economy of High Wages, pp. 175-193; J. Schoenhof, Wages and Trade; ‘Labor, Wages, and Tariff,’ Tariff Reform Series, II., No. 21 (January 15, 1890); ‘Labor and the Tariff,’ Tariff Reform Series, I., No. 12, p. 2 (October 10, 1888).

  1. Arguments based on comparisons of wages in different countries are untrustworthy.

(a) Such comparisons prove too much: D. A. Wells, Practical Economics, p. 137. — (b) There is no uniform rate in any country. — (c) There are many local causes which must necessarily make wages higher in one country than in another. — (1) Natural advantages: D. A. Wells, The Relation of the Tariff to Wages, p. 2. — (2) Standing army service: Ibid. — (3) The question of unoccupied land: North American Review, Vol. 136, p. 270.

  1. Careful use of statistics shows that wages are relatively higher under a low tariff.

(a) The high rate of wages in the United States is determined by unprotected industries.— (1) There are more laborers connected with unprotected than with protected industries: J. L. Laughlin’s edition of J. S. Mill, Principles of Political Economy, p. 619. — (b) Wages in certain protected industries in the United States are lower than wages in the same industries in England. — (c) In protected industries in which wages are higher than abroad, they were higher before the existence of a protective tariff: Nation, XLVII., 327 (October 25, 1888). — (d) New South Wales is more prosperous than Victoria: Fortnightly Review, XXXVII., 369 (March, 1882).

  1. A protective tariff lowers wages by diminishing the amount of capital to be distributed for wages.

(a) The general productiveness of industry is less: Practical Economics, p. 135.— — (1) The effect of limiting the sale of commodities to a domestic market is evil: Practical Economics, p. 139. — (b) The proportion in which that produced is divided is less favorable to labor.—(1) The producer requires the same ratio of profit, while the number of laborers among whom the smaller wage-fund is divided is as large as before: North American Review, Vol. 136, p. 270.

  1. Real wages are less.

(a) The tariff increases the price of commodities and puts them out of the reach of the poorer classes: North American Review, Vol. 136, p. 270.

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RECIPROCITY WITH CANADA.

Question: ‘Resolved, That it would be to the advantage of the United States to establish complete commercial reciprocity between the United States and Canada.’

Brief for the Affirmative.

General references:

Goldwin Smith, Canada and the Canadian Question, pp. 281-301; Handbook of Commercial Union (Toronto, 1888); Century, XVI., 236 (June, 1889); Forum, VI., 241 (November, 1888) ; VII., 361 (June, 1889); New Englander, LIII., 1 (July, 1890); North American Review, Vol. 148, p. 54 (January, 1889); Vol. 151, p. 212 (August, 1890); Vol. 139, p. 42 (July, 1884); Harper’s Magazine, LXXVIII., 520 (March, 1889).

  1. Greater freedom of trade between the United States and Canada is desirable.

(a) It would furnish the United States with much needed raw materials: Century, XVI., 236. — (1) Coal, iron, and other mineral products are extensive and easily accessible to the northern and middle states: Handbook of Commercial Union, pp. 72-85; North American Review, Vol. 139, p. 42. — (2) Agricultural products. — (b) It would open to us a large and convenient market for our manufactures: Handbook of Commercial Union, p. 249. — (c) Closer commercial relations would remove much of the present ill feeling, and international disputes would be avoided.

  1. Reciprocity would be advantageous economically.

(a) It would open up a great field for the investment of American capital: Handbook of Commercial Union, p. 247. — (b) It would do away with the enormous expense of maintaining an unnatural customs line four thousand miles long. — (c) By the settlement of the fishery question it would give our fishermen valuable privileges.

  1. Reciprocity is practical:

Handbook of Commercial Union, p. 111. — (a) Great Britain would not raise serious objections: Handbook of Commercial Union, p. 101 .— (1) English investments in Canada would be benefited by commercial prosperity. — (2) Greater commercial activity would establish confederation on a firm basis and give assurance that Canada would remain a part of the British domain. — (b) The loyalty of Canadians would not be affected. — (1) The common tariff would not discriminate against England. — (c) A common tariff could be agreed upon. — (1) The present policy of the United States is toward a reduction of tariffs, while that of Canada is toward an increase. — (2) Canada would be willing to make concessions, such as the adjustment of internal revenue. — (d) The reciprocity treaty of 1854 was a commercial success. — (1) Trade rose from seven millions to twenty: Encyclopedia Britannica, IV., 766. — (2) The abrogation of the treaty was due to national animosity caused by acts of the English during the civil war.

 

Brief for the Negative.

General references:

James Douglas, Canadian Independence, Annexation, and British Imperial Federation; Forum, VI., 451 (January, 1889); J. N. Larned, Report to the Secretary of the Treasury on the State of Trade Between the United States and British Possessions in North America, January 28, 1871; Penn Monthly, V., 529 (July, 1874); Congressional Globe, 1864-1865, pp. 229-233 (January 12, 1865).

  1. Complete commercial reciprocity is impracticable.

(a) The commercial policies of Great Britain and the United States are conflicting. — (b) A common tariff could not be decided upon without detriment to one country. — (c) Internal revenue stands in the way.—(1) Excise taxes and internal revenue would have to be made equal; but excise is necessary to Canada, while it is not unlikely that we shall do away with our internal revenue: Forum, VI., 451.

  1. Complete reciprocity would be contrary to good public policy.

(a) It would result in loss of revenue. — (b) In case of war with Great Britain the frontier would be in a bad condition, and our whole tariff system would be torn asunder.

  1. Complete reciprocity would be economically disastrous.

(a) American and Canadian products are not supplementary, but competitory. — (b) Cheaper wages and cheaper raw material would be an inducement for our capital to move to Canada, and would also lower wages in the United States. — (c) We should lose much through emigration to Canada. — (d) It would give Canada the benefit of the market which we hav

e built up for ourselves by protection: Penn Monthly, V., 531.

  1. Historically, reciprocity with Canada has proved injurious.

(a) The United States tried commercial reciprocity with Canada in 1854, but abrogated the treaty in 1866.

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FREE SHIPS.

Question: ‘Resolved, That foreign-built ships should be admitted to American registry free of duty.’

Brief for the Affirmative.

General references:

D. A. Wells, The Decay of Our Ocean Mercantile Marine; John Codman, Free Ships; J.D.J. Kelly, The Question of Ships; North American Review, Vol. 142, p. 478 (May, 1886); House Reports, 1889-1890, No. 1210, Minority Report; 1882-1883, No. 1827, Views of the Minority; 1891-1892, No. 966; 1887-1888, No. 1874; Congressional Record, 1890-1891, p. 1044 (January 8, 1891); Congressional Globe, 1871-1872, Part 3, p. 2241 (April 6, 1872).

  1. A change in our navigation laws is necessary.

(a) Under their restrictions American shipping has suffered. — (1) Through heavy duties on ships. — (b) Though heavily protected, the ship-building industry has not thrived. — (1) The cost of labor is too great. — (c) American capital has been forced abroad. — (d) The present provision for the limited admission of foreign ships is inadequate. — (e) The development of inventive genius is prevented.

  1. Free ships furnish the only practicable remedy:

The Question of Ships, Chap. v. — (a) They enable Americans to compete on equal terms for world’s commerce. — (1) Ships can be bought at the lowest price. — (b) Carrying trade should not be sacrificed to ship-building.—(1) It employs fifty times as many men: The Question of Ships, p. 31. — (c) American ship-building would not be seriously affected.— (1) Only iron ships are concerned. — (d) The success of the plan is well illustrated by Germany’s policy.

  1. Subsidizing schemes are impracticable and inefficient:

The Question of Ships, Chap. iv. — (a) Subsidies large enough to be efficient would be too great a tax on the people. — (1) The cost of building ships is one-third greater than in England: John Codman, Free Ships. — (b) They must be permanent. — (c) They have already been unsuccessfully tried in the United States. — (d) They have failed in France. — (1) Ship-building has not been built up in ten years’ trial. — (e) England’s supremacy is not due to subsidizing: The Decay of Our Ocean Mercantile Marine, pp. 29-45. — (1) No payments are made to sailing vessels. — (2) Compensation is given only for carrying mails, and for building according to admiralty requirements.

Brief for the Negative.

General references:

W. W. Bates, American Marine; C. S. Hill, History of American Shipping; H. Hall, American Navigation; North American Review, Vol. 148, p. 687 (June, 1889); Vol. 154, p. 76 (January, 1892); Vol. 158, p. 433 (April, 1894); House Reports, 1891-1892, No. 966, Views of the Minority; 1887-1888, No. 1874, Views of the Minority, p. 10; 1882-1883, No. 1827; 1869-1870, No. 28; Nelson Dingley, Jr., in Congressional Record, 1890-1891, p. 997 (January 7, 1891).

  1. The lack of free registry was not responsible for the decline in American shipping.

(a) Under the present laws our merchant marine reached its height. — (b) The decline was due to other causes. — (1) To the destruction of commerce by English-built cruisers: American Marine, Chap. ix. — (2) To the commercial depression following war. — (3) To mechanical changes. — (x) From wood to iron. — (y) From sail to steam.

  1. Free registry offers no material advantages.

(a) American capital now invests in foreign-built ships. — (1) ‘Whitewashed’ sales: American Navigation, p. 75. — (b) The advantage of flying American flag would be subject to abuse.

  1. Free registry involves grave evils.

(a) Economic. — (1) It would annihilate ship-building in the United States. — (2) It would withdraw millions of capital from the country. — (b) National. — (1) It would cripple us in time of war. — (x) We should have no trained workmen. — (y) We should have no shipyards to build in an emergency.

  1. There are better alternatives than free registry.

(a) The removal of duties on materials. — (b) Sufficient mail subsidies to American-built ships: American Navigation, p. 77. — (c) A change in taxation from the principal invested in ships to net profits.

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SHIPPING SUBSIDIES.

Question: ‘Resolved, That the United States should establish a system of shipping subsidies.’

Brief for the Affirmative.

General references:

W. W. Bates, American Marine; House Reports, 1889-1890, No. 1210; C. S. Hill, History of American Shipping; House Reports, 1888-1889, No. 4162, Views of the Minority, p. 5; Congressional Record, 1890-1891, p. 997 (January 7, 1891), p. 3355 (February 26, 1891); Statement of Captain W. W. Bates in House Reports, 1889-1890, No. 1210, p. 220; Overland Monthly, I., 462 (May, 1883); H. Hall, American Navigation.

  1. The merchant marine of the United States is at present in a deplorable condition and ought to be built up:

House Reports, 1889-1890, No. 1210, pp. i-vi. — (a) A national marine is of the greatest importance to the wealth and the commercial prosperity of a nation: Lalor’s Cyclopædia, II., 987; J.D.J. Kelly, The Question of Ships, p. 108. — (1) It is essential to naval power. — (2) To the development of resources. — (3) To national unity and individualism. — (b) The United States has the necessary qualifications for the marine industry: The Question of Ships, Chap. i.; American Navigation, Chap. ii. — (1) In 1856 the United States merchant marine was the most extensive in the world. — (2) Our extensive sea-coast naturally fosters a maritime spirit. — (3) We have abundant natural resources. — (4) Extensive commerce. — (5) Great ship-building interests.

  1. The subsidy system is a desirable means of building up the marine.

(a) It is preferable to the policy of free ships. — (1) Such a policy would destroy our ship-building industry: American Navigation, Chap. vii. — (b) Subsidies given to vessels for mail service would greatly encourage commerce. — (1) By insuring regular service: American Navigation, p. 77; Congressional Record, 1885-1886, p. 4009 (April 30, 1886). — (c) Vessels subsidized could be put under contract to serve the United States in case of war: American Navigation, pp. 83-86. — (d) It is an economical system. — (1) The total payments would not exceed $5,000,000 per annum. — (2) The earnings of the foreign mail service, which amount to $10,000,000 per annum, could fittingly be used for subsidies: Congressional Record, 1889-1890, p. 6996 (July 7, 1890).

  1. Subsidies are necessary.

(a) The cost of American ships and their running expenses are greater than those of foreign vessels. — (b) The high subsidies given to foreign lines make it impossible for American lines to compete without like subsidies.

  1. Subsidies have proved successful in practice:

American Marine, pp. 325-327. — (a) We have tried such a system and found it effective: W. S. Lindsay, Merchant Shipping, IV., 194-228. — (b) Nearly all foreign nations maintain shipping subsidies: Congressional Record, 1890-1891, pp. 3359-3362 (February 26, 1891). — (c) They have been successful in France: House Reports, 1889-1890, No. 1210, pp. ix-xv. — (d) Great Britain, the foremost maritime country, has steadily adhered to a system of bounties: Congressional Record, 1890-1891, pp. 1001-1003 (January 7, 1891).

Brief for the Negative.

General references:

House Reports, 1889-1890, No. 1210, Minority Report, p. xxxix.; D.A. Wells, Our Merchant Marine; D.A. Wells, The Decay of Our Ocean Mercantile Marine; John Codman, Free Ships; John Codman, Shipping Subsidies and Bounties; Congressional Record, 1890-1891, pp. 3348, 3368, 3383 (February 26, 1891); 1889-1890, p. 6959 (July 3, 1890); House Reports, 1888-1889, No. 4162; J. D. J. Kelly, The Question of Ships.

  1. Subsidies are politically objectionable.

(a) They have proved and always will prove inducements to corrupt legislation. — (b) They create and foster a privileged class at the expense of the whole people: Our Merchant Marine, p. 141; Free Ships, p. 15. — (c) The practice would establish a bad precedent: House Reports, 1889-1890, No. 1210, pp. xl., xlii.

  1. Subsidies are economically objectionable:

Congressional Record, 1890-1891, p. 3352. — (a) They are merely temporizing measures: The Decay of Our Ocean Mercantile Marine, p. 25. — (b) They would be a tremendous cost: House Reports, 1888-1889, No. 4162, p. 4. — (c) They would not contribute to the general prosperity of the country: House Reports, 1888-1889, No. 4162, pp. 2-3. — (1) They would not benefit commerce. — (x) Foreign vessels now carry as cheaply as it can be done. — (2) They would benefit one industry at the expense of others. — (3) As profit would come wholly from subsidies, shippers would become uneconomical and the advantages of competition would be lost.

  1. There is no truth in the statement that shipping subsidies have built up merchant marines.

(a) Great Britain does not subsidize her vessels: The Decay of Our Ocean Mercantile Marine, p. 29; House Reports, 1889-1890, No. 1210, pp. xlii., 1. — (1) British mail subsidies are for actual service rendered as shown by the exacting rules and penalties for non-performance of contracts. — (b) The French system has not been successful: House Reports, 1888-1889, No. 4162, p. 3; 1889-1890, No. 1210, pp. 1-lx. — (c) Our own experience has been unfavorable. — (1) The Collins line in 1847: Congressional Record, 1890-1891, p. 3386.

  1. The best remedy for American shipping is free ships:

Our Merchant Marine, pp. 95-128; North American Review, Vol. 142, pp. 481-484 (May, 1886). — (a) Free ships would at least allow Americans to compete on equal terms for the commerce of the world.

 

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FREE SUGAR.

Question: ‘Resolved, That sugar should be admitted free of duty.’

Brief for the Affirmative.

General references:

‘Sugar and the Tariff,’ Tariff Reform Series, III., No. 12, p. 174 (July 30, 1890); Harper’s Weekly, XXXVIII., 602 (June 30, 1894), 771 (August 18, 1894), 819 (September 1, 1894); Nation, LIX., 74 (August 2, 1894), 112 (August 16, 1894); Congressional Record, 1889-1890, p. 10,631 (September 27, 1890).

  1. The question of protection does not enter.

(a) We produce only ten per cent, of the sugar we use: Princeton Review, VI., 322 (November, 1880). (b) The established industry can be more economically protected by bounties.

  1. The tariff is a burden on the poor.

(a) The poor man must pay more in proportion to his ability than the rich: C. D. Wright in Seventeenth Annual Report of Massachusetts Bureau of Statistics of Labor, p. 266; W. O. Atwater in American Public Health Association, XV., 208. — (1) Carbohydrates are necessary to life. — (2) Sugar is the most economical carbohydrate. — (3) The laboring man consumes the greatest proportion of this constituent: American Public Health Association, XV., 216.

  1. The sugar tariff is a check to the country’s development.

(a) It discourages industries in which sugar is a raw material. — (1) The preserving industry. — (2) The condensed milk industry. — (3) The refining industry. — (b) It injures foreign commerce. — (1) With Brazil and Cuba. — (2) Germany has retaliated for our tariff by putting a tax on American beef: Harper’s Weekly, XXXVIII., 1058 (November 10, 1894).

  1. Sugar taxes are a great source of corruption.

(a) They enable importers to defraud the government by manipulating the grades of sugar. — (b) They give rise to political corruption such as has disgraced the Senate. — (1) By fostering the sugar trust: Nation, LVIII., 440 (June 14, 1894); LIX., 71, 93, 112; Harper’s Weekly, XXXVIII., 602, 771, 819; Tariff Reform Series, VII., No. 2, p. 28 (July 1, 1894).

  1. The sugar tax is not necessary for revenue.

(a) If the revenues fall short, the deficiency can be made up better by replacing the higher taxes on malt liquors and tobacco.

Brief for the Negative.

General references:

Congressional Record, 1893-1894, Appendix, p. 1178 (August 13, 1894), p. 634 (January 23, 1894); 1889-1890, Appendix, p. 437 (May 20, 1890); Harper’s Weekly, XXXVIII., 218 (March 10, 1894); Tariff Hearings Before the Committee on Ways and Means, 1893, pp. 505, 520, 542.

  1. A tax on sugar is a just way of raising revenue:

Congressional Record, 1893-1894, Appendix, p. 1182. — (a) It is evenly distributed: Ibid. — (1) It reaches consumers in proportion to their incomes. — (2) Sugar is to a great extent an article of voluntary consumption.

  1. It is a desirable way of raising revenue.

(a) It is the only tax which furnishes a steady, reliable revenue, capable of computation beforehand. — (b) It is an easy tax to collect. — (c) Precedent has established sugar as a fitting article for taxation: D. A. Wells in Princeton Review, VI., 323 (November, 1880); Congressional Record, 1893-1894, Appendix, pp. 1180-1186. — (1) It has heretofore furnished one-fourth of the total revenue: D. A. Wells, The Sugar Industry of the United States and the Tariff, p. 9.

  1. The tax is necessary to encourage the American sugar industry:

Congressional Record, 1893-1894, Appendix, p. 632. — (a) The beet and sugar industries are difficult to establish. — (1) They require a large outlay of capital at the beginning. — (2) The return on the investment is small. — (3) The industries are still experimental. — (b) American producers require a special protective tax to offset the large bounties which foreign countries pay to their producers.

  1. The objections to the tax are unsound.

(a) The sugar-refining trust would remain even if sugar were admitted free. — (1) As nearly all of the sugar admitted to the United States is raw, it would still have to pass through the refineries. — (b) The frauds against the government, due to the manipulation of grades, are not an inherent result of the tax.

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SUGAR BOUNTIES.

Question: ‘Resolved, That a system of sugar bounties is contrary to good public policy.’

Brief for the Affirmative.

General references:

D. A. Wells, Recent Economic Changes, pp. 295-309; Lalor’s Cyclopædia, II., 99; Fortnightly Review, XLII, 638 (November, 1884) ; Nation, XLV., 164 (September 1, 1887); XLII, 420 (May 20, 1886); Congressional Record, 1889-1890, pp. 10,712-10,716 (September 30, 1890), Appendix, p. 391.

  1. The bounty system is unconstitutional.

(a) It is legislation in favor of a class: Nation, XLVII., 24 (July 12, 1888); Congressional Record, 1889-1890, pp. 10,712-10,716, Appendix, p. 391; Loan Association v. Topeka, 120 Wallace, 663-664.

  1. The bounty system is burdensome on the people:

Nation, XLIV., 484 (June 9, 1887). — (a) The people are compelled to pay the bounty: Fortnightly Review, XLII., 638. — (b) They are compelled to pay the highest cost of production for sugar: Fortnightly Review, XLII., 638. — (c) They are compelled to pay for the expensive system of administration.

  1. The bounty system gives rise to fraud.

(a) It places a great amount of money and patronage in the hands of political parties: Congressional Record, 1889-1890, Appendix, p. 391. — (b) The intricate system of bounty payments enables producers to defraud the government: Recent Economic Changes, pp. 295-298.

  1. The bounty system is injurious to commerce.

(a) It deranges prices. — (1) The producer is led to disregard the law of supply and demand: Fortnightly Review, XLII., 638. — (b) It makes foreign exchange uncertain: Nation, XLV., 164. — (1) By causing alternate over-production and under-production: Recent Economic Changes, pp. 295-309. — (c) It enables producers to control the markets.

  1. The bounty system is unnecessary for the development of the industry.

(a) The United States has as good facilities for raising beets as any other country. — (b) The sugar industry is not an infant industry.

  1. The bounty system has proved a failure in Europe:

Nation, XLVI., 45 (January 19, 1888); Recent Economic Changes, pp. 295-309; Lalor’s Cyclopædia, II., 99. — (a) The beet-sugar industry was fostered at the expense of cane sugar: Nation, XLV., 164. — (b) International complications arose: Saturday Review, LXIV., 142 (July 30, 1887), 847 (December 24, 1887).

Brief for the Negative.

General references:

Essay on ‘Industry and Commerce’ in Works of Alexander Hamilton, III., 366; Congressional Record, 1889-1890, p. 4266 (May 7, 1890); Senators Allison and Sherman in Congressional Record, 1888-1889, pp. 888-895 (January 17, 1889).

  1. The sugar industry is highly desirable.

(a) The importance of sugar as a food is constantly increasing: Congressional Record, 1889-1890, p. 4266. — (b) The industry will be national, not sectional: Congressional Record, 1888-1889, p. 892; 1889-1890, p. 4515 (May 10, 1890). — (c) Beets do not exhaust the soil: Congressional Record, 1889-1890, p. 4266.

  1. The sugar industry would bring general economic advantages.

(a) It would keep at home money now sent abroad in payment for sugar. — (b) Capital greatly exceeding the amount of the bounty would be invested in the industry. — (c) The industry would create a new and a large demand for labor, both agricultural and mechanical.

  1. The bounty system is the best means of establishing the sugar industry.

(a) Protective duties are inadequate. — (1) Bounties paid by foreign countries tend to counteract our tariff. — (2) In the past import duties have failed. — (b) Bounties are necessary to tide the industry over the critical time of beginning: Congressional Record, 1889-1890, p. 4515. — (1) Establishment is difficult and expensive. — (2) There is small inducement for capital. — (3) Beet and sorghum sugar industries are more or less experimental. — (c) Bounties have been successful in establishing industries abroad. — (1) Beet-sugar industry in Germany: Congressional Record, 1889-1890, pp. 4266, 4431 (May 9, 1890).

  1. The bounty system is constitutional.

(a) The bounty is extended to anyone who is willing to undertake the production of sugar: American Law Register and Review, XXXI., 289 (May, 1892).

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DUTIES ON WOOL AND WOOLLENS.

Question: ‘Resolved, That a system of duties on wool and woollens is undesirable.’

Brief for the Affirmative.

General references:

F. W. Taussig in Quarterly Journal of Economics, VIII., 1 (October, 1893); North American Review, Vol. 154, p. 133 (February, 1892); ‘Wool and Tariff,’ Tariff Reform Series, III., No. 19, p. 342 (November 15, 1890); ‘The Wool Question,’ Tariff Reform Series (Report of Ways and Means Committee on the Springer Bill), V., No. 1, p. 1 (March 15, 1892).

  1. Duties on wool and woollens have failed to bring beneficient results.

(a) Wool-growing has not prospered. — (1) The United States cannot raise grades of wool that will compare in quality with the better grades of foreign countries. — (x) Owing to climate: Quarterly Journal of Economics, VIII., 18. — (b) Woollen manufacturers produce only the cheapest grades of woollens. — (c) Under the tariff American producers have succeeded in producing but a small quantity of woollens in comparison with foreign importations: Quarterly Journal of Economics, VIII., 28-29; Tariff Reform Series, III., No. 19, p. 359.

  1. The removal of duties on wool does not hurt woolgrowers.

(a) The grades of wool raised by American growers are not subject to foreign competition. — (1) In these grades the American producer has an equal advantage with foreign producers: Quarterly Journal of Economics, VIII., 5-20.

  1. Free woollens are not injurious to manufacturers.

(a) They do not injure the production of cheap grades of woollens for the American market. — (1) The American manufacturer, owing to the greater efficiency of his machinery and the small necessity for hand labor, can compete on equal terms in these grades.

  1. The removal of duties on wool is a benefit to manufacturers.

(a) It enables them to engage in the manufacture of finer grades of woollens: Quarterly Journal of Economics, VIII., 32-33. — (1) By giving them free raw material of finer grades. — (b) It gives them a larger assortment of wools from which to select their grades: Congressional Record, 1887-1888, pp. 6519-6530 (July 19, 1888). (c) It enlarges their trade with South America: Nation, XLVI., 500 (June 21, 1888).

  1. Duties are unjust to consumers.

(a) They require them to pay a high price for woolens which are not made in America. — (1) This is shown by the constant increase in the importations of the finer grades of woollens in spite of the high tariff.

Brief for the Negative.

General references:

Bulletin of National Association of Wool Manufacturers, XVIII., 1888, Nos. 2, 3; XXII., 268 (September, 1892); XXIII., 275 (December, 1893); XXII., 1 (March, 1892); XXL, 333 (December, 1891); XXII., 115 (June, 1892); W. D. Lewis, Our Sheep and the Tariff (Publications of the University of Pennsylvania), Chaps. i., vii.; Congressional Record, 1893-1894, Appendix, pp. 1064, 1172.

  1. Duties on wool are necessary to protect the sheep-raising industry:

Our Sheep and the Tariff, Chap. vii. — (a) Foreign competition is especially active in this industry. — (1) Australia and the Argentine Republic have superior natural advantages.

  1. Duties on woollens are necessary to protect manufacturers:

Bulletin of National Association of Wool Manufacturers, XXII., 133. — (a) Foreign manufacturers have an advantage in cheap labor. (b) Foreign manufacturers have as good machinery as manufacturers in the United States. — (1) American machinery is used extensively abroad. — (c) The return on investments in the United States is less than it is abroad. — (1) A larger capital is required to produce an equivalent amount of woollens: Bulletin of National Association of Wool Manufacturers, XXII., 136.

  1. The history of the United States shows that duties have been successful in building up the wool and woollen industries:

Bulletin of National Association of Wool Manufacturers, XVIII., 234. — (a) The production of wool has greatly increased since the system was begun. — (b) The woollen industry is four times as large as in 1860: Bulletin of National Association of Wool Manufacturers, XXII., 3. — (c) Under periods of high protection the industries have been most prosperous.

  1. The duties have benefited the consumers:

Bulletin of National Association of Wool Manufacturers, XXII., 119. (a) They have reduced the price of woollens to less than half what it was thirty years ago. — (1) By causing active competition and rapid improvements in machinery: Bulletin of National Association of Wool Manufacturers, XXII., 119.

 

Source: W. Du Bois Brookings and Ralph Curtis Ringwalt, eds., Briefs for Debate on Current Political, Economic, and Social Topics. New York: Longmans, Green, and Co., 1908, pp. 96-117.

Image Source:  Cartoon by John S. Pughe published in Puck , September 15, 1897. Library of Congress Prints and Photographs Division Washington, D.C. 20540.

Categories
Exam Questions Johns Hopkins Suggested Reading

Johns Hopkins. Reading list and exam for Economic Fluctuations and Growth. Domar, 1957

 

 

The following macroeconomics course outline with readings and examination questions come from the last academic year that Evsey Domar taught at Johns Hopkins University (1957-58) before he moved to M.I.T.

Note: the last three reading items in section VII (Solow (1956), Solow (1957), and Abramovitz (1956) have clearly been added after the original syllabus was typed (a lighter typewriter ribbon and a larger font were used).

___________________________

THE JOHNS HOPKINS UNIVERSITY

ECONOMIC FLUCTUATIONS AND GROWTH
E. D. Domar
Political Economy 605
Fall, 1957-58

READING LIST

Students not familiar with accounting are advised to read Mason and Davidson, Fundamentals of Accounting, Chapters 3-5, 9, 13, 17, 21, 25-26, or an equivalent.

The purpose of this list is to suggest to the student the sources in which the more important topics of the course are discussed from several points of view. His objective should be the understanding of these topics and not the memorization of opinions expressed.

Items marked with an * are strongly recommended. (I don’t like to use the expression “required” in a graduate reading list.)

  1. NATIONAL INCOME AND RELATED ITEMS

*Kuznets, S., National Income and Its Composition (New York, 1941), particularly vol. I, Chapter 1.
*Ruggles, R. & N., National Income Accounts and Income Analysis (New York, 1956).
*National Income, 1954 Edition, Supplement to the Survey of Current Business.
*Leontief, “Output, Employment, Consumption and Investment,” Quarterly Journal of Economics, Feb., 1944.
Leontief, The Structure of American Economy (New York, 1951)

 

  1. KEYNESIAN ECONOMICS — GENERAL

Students without prior training in this field are advised to study D. Dillard, The Economics of John Maynard Keynes (New York, 1948), A. H. Hansen, A Guide to Keynes (New York, 1953), or K. Kurihara, Introduction to Keynesian Dynamics (New York, 1956).

*J. M. Keynes, The General Theory of Employment, Interest, and Money (New York, 1936), Philadelphia, 1944).
*American Economic Association, Readings in Business Cycle Theory, essays 5, 6, 7, 8.
S. E. Harris, The New Economics (New York, 1947) essays 1-19, 30-33, 38-46.
*A. P. Lerner, Economics of Control (New York, 1944), chapters 21-23, 25.
*K. K. Kurihara, Post Keynesian Economics (New Brunswick, N. J., 1954), essays 1, 11*.
*American Economic Association, Readings in the Theory of Income Distribution (Philadelphia, 1946), essay 24.
L. R. Klein, The Keynesian Revolution, chapters 3-5.
H. S. Ellis, A Survey of Contemporary Economics (Philadelphia, 1948) Vol. 1, chapter 2.
*Income, Employment, and Public Policy, Essays in Honor of Alvin H. Hansen (New York, 1948, essay I.)
*A. F. Burns, “Economic Research and the Keynesian Thinking of our Times,” in his The Frontiers of Economic Knowledge, (Princeton, 1954), or in the Twenty-Sixth Annual Report of the National Bureau of Economic Research, Inc. (New York, 1946). See also the discussion by Hansen and Burns in the Review of Economic Statistics, November, 1947.
Patinkin, D., Money, Interest, and Prices (Evanston, Ill., 1956)

 

  1. THE THEORY OF INTEREST

Readings in the Theory of Income Distribution, essays 22, 23, 26
Readings in Monetary Theory, essays 6, 11, 15
*Haberler, Prosperity and Depression, (Lake Success, N.Y., 1946), chapter 8.
*J. E. Meade and P. W. S. Andrews, “Summary of Replies to Questions on Effects of Interest Rates,” and “Further Inquiry into the Effects of Rates of Interest,” Oxford Economic Papers, No. 1, 1938 and No. 3, 1940.
*J. G. Gurley and E. S. Shaw, “Financial Aspects of Economic Development,” American Economic Review, September, 1955
A. G. Hart, Money, Debt, and Economic Activity, Second Ed. (New York, 1953).
*J. F. Ebersole, “The Influence of Interest Rates,” Harvard Business Review, Vol. XVII, 1938, pp. 35-39.
*H. D. Henderson, “The Significance of the Rate of Interest,” Oxford Economic Papers, October, 1938, pp. 1-13.
R. S. Sayers, “Business Men and the Terms of Borrowing,” Oxford Economic Papers, Feb. 1940, pp. 23-31.
P. W. S. Andrews, “A Further Inquiry into the Effects of Rates of Interest,” Oxford Economic Papers, Feb. 1940, pp. 32-73.
*W. H. White, “Interest Inelasticity of Investment Demand – the Case from Business Attitude Surveys Re-examined,” American Economic Review, Sept. 1956, pp. 565-87.
F.A. Lutz, “The Interest Rate and Investment in a Dynamic Economy,” American Economic Review, Dec., 1945.

 

  1. THE CONSUMPTION FUNCTION

Post-Keynesian Economics, essay 15.
Income, Employment and Public Policy, Essays in Honor of Alvin H. Hansen, (New York, 1948) essay III.
*J. S. Duesenberry, Income, Saving, and the Theory of Consumer Behavior (Cambridge, Mass., 1949).
*B. F. Haley, A Survey of Contemporary Economics (Homewood, Illinois, 1952), Vol. II, essay 2.
*T. E. Davis, “The Consumption Function as a Tool of Prediction,” The Review of Economics and Statistics, August, 1952.
W. W. Heller, F. M. Boddy & C. L. Nelson, Savings in the Modern Economy, A Symposium (Minneapolis, 1953).
*R. Ferber, A Study of Aggregate Consumption Functions, National Bureau of Economic Research, Technical Paper 8 (New York, 1953).
M. Friedman, A Theory of the Consumption Function (Princeton, N. J., 1957).

 

  1. THE MULTIPLIER AND THE ACCELERATOR

*Readings in Business Cycle Theory, essays 9-12.
*Haberler, Prosperity and Depression, chapter 13.
*S. Kuznets, “Relation between Capital Goods and Finished Products in the Business Cycle,” in Economic Essays in Honor of Wesley Clair Mitchell, (New York, 1935).
*R. F. Kahn, “The Relation of Home Investment to Unemployment,” Economic Journal, 1931. Republished in Hansen and Clemence, Readings in Business Cycles and National Income (New York, 1953), essay 15.
*Haavelmo, T., “Multiplier Effects of a Balanced Budget,” Econometrica, 1945; reprinted in Readings in Fiscal Policy, pp. 335-343.
*William A. Salant, “Taxes, Income Determination, and the Balanced Budget Theorem,” The Review of Economics and Statistics, May, 1957.

 

  1. PRICE FLEXIBILITY AND EMPLOYMENT

*A. C. Pigou, “The Classical Stationary State,” The Economic Journal, December, 1943.
*O. Lange, Price Flexibility and Employment, (Bloomington, Indiana, 1944).
*M. Friedman, “Lange on Price Flexibility and Employment,” American Economic Review, Sept. 1946.
*Readings in Monetary Theory, essay 13.
*T. C. Schelling, “The Dynamics of Price Flexibility,” American Economic Review, Sept. 1949.
D. Patinkin, Money, Interest, and Prices (Evanston, Ill., 1956).

 

  1. THEORY OF GROWTH

*E. D. Domar, Essays in the Theory of Economic Growth (New York, 1957), Foreword, Essays I, III-V.
W. Fellner, Trends and Cycles in Economic Activity, (New York, 1956)
A. H. Hansen, Fiscal Policy and Business Cycles (New York, 1941)
*R. F. Harrod, Towards a Dynamic Economics (London, 1951), Part III.
W. W. Leontiev [sic], Studies in the Structure of the American Economy, (New York, 1953).
J. Robinson, The Accumulation of Capital, (London, 1956).
*Simon Kuznets, “Towards a Theory of Economic Growth,” R. Keckachman, ed., National Policy for Economic Welfare at Home and Abroad (New York, 1955)
*Robert M. Solow, “A Contribution to the Theory of Economic Growth,” The Quarterly Journal of Economics, Feb. 1956.
*Robert M. Solow, “Technical Change and the Aggregate Production Function,” The Review of Economics and Statistics, August, 1957.
*Moses Abramovitz, “Resource and Output Trends in the United States since 1870,” American Economic Review Papers and Proceedings, May, 1956, pp. 5-23.

 

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

___________________________

THE JOHNS HOPKINS UNIVERSITY

ECONOMIC FLUCTUATIONS AND GROWTH
(Political Economy 605, Fall Term 1957-58)

Final Examination—Three hours
January 23, 1958
E. D. Domar

Please answer all questions in any order you like. Your reasoning is more important than your answers.

I. (25%)

(a) Explain the basic economic philosophy which forms the foundation of modern National income (and gross product) estimates in Western countries.

(b) Show how this philosophy is transformed into specific criteria used by the U.S. Department of Commerce in their estimates of GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND CONSUMER DISPOSABLE INCOME. Illustrate your discussion with examples.

(c) “Existing methods of computing national income or product exaggerate the difference between the incomes (or products) of advanced and of undeveloped countries.”

Comment fully.

II. (15%)

The following comment was made by Mr. Ayzenshtadt, a Soviet economist, in 1947:

“Even the greatest admirers of Keynes and of his theory that loan capital is the main propeller of the industrial cycle, do not see anything new in it…Keynes himself thinks that the ‘novelty’ of his system lies in the equilibrium formula of the economic process in which the independent and dependent variables are arranged as follows:

Independent Variables:

(1) Propensity to consume
(2) Marginal efficiency of capital
(3) Rate of interest
(4) Liquidity preference

Dependent Variables:

(1) Savings
(2) Investment
(3) Level of Employment”

Comment. Be specific.

III. (15%)

“The best cure against inflation is increased production.” Do you agree? Why or why not? Comment fully.

IV. (25%)

Write an analytical essay on the subject: “The effect of a proportional personal and corporate income tax on the rate or rates of interest.”

V. (20%)

Examine the effect on GROSS NATIONAL PRODUCT of a $100 increase in GROSS PRIVATE CAPITAL FORMATION.

(a) Discuss the conceptual and analytical questions involved.
(b) Try to make a numerical estimate

 

Source:   Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Papers of Evsey D. Domar, Box 16, Folder “Final Exams. Johns Hopkins, Stanford, U of Michigan”.

Image Source: MIT Museum website

Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. International Trade and Commercial Policy. Haberler, Harris, Leontief 1940

 

Of the fields with a deep bench at Harvard in the immediate pre-WWII era, international trade could boast three faculty members and two post-docs of great distinction: Gottfried Haberler, Wassily Leontief, Seymour Harris; and Wolfgang Stolper and Heinrich (a.k.a. “Henry”) Heuser. This post has the course outlines with assigned readings for both the trade theory and commercial policy semesters and the final examination questions for commercial policy. 

______________________________

Henry Heuser from AEA List of Members 1948

HEUSER, HENRY KARL-MARIA, 1747 F St., N.W., Washington, D.C. (1942) Int. Monetary Fund, econ., res., govt serv.; b. 1911; B.A., 1932, McGill; M.A., 1933, Ecole des Science Economiques et Politiques (Paris); Ph.D., 1938, Univ. of London. Fields 10, 1a, 7. Doc. dis.  Economics of exchange control. Pub. Control of international trade (Rutledge, London, 1938; Blakiston, Philadephia, 1939).

Source:  Alphabetical List of Members (as of June 15, 1948) in the 1948 Directory of the American Economic Association (Jan., 1949). American Economic Review, Vol. 39, No. 1.p. 85.

 

Obituary for Henry Heuser (1911-95) from the Washington Post
April 21, 1995

Henry K. Heuser, 83, an economist who retired in the early 1970s from the Agency for International Development, died of cancer April 18 at the Washington Hospice.

Mr. Heuser was born in Berlin. In the mid-1920s, he immigrated to Canada. He graduated from McGill University and also studied at Ecole des Sciences Economiques in Paris and at the London School of Economics, where he received a doctorate.

In the late 1930s, he taught economics and international trade at the University of Minnesota, Harvard University and the Fletcher School of Law and Diplomacy at Tufts University. He was author of a book, “Control of International Trade,” which was published in 1939.

During World War II, he was an intelligence officer with the Office of Strategic Services, then after the war he worked in Paris on the Marshall Plan for the economic rehabilitation of postwar Europe.

In the late 1940s, he worked for the Federal Reserve and the International Monetary Fund, then joined U.S. foreign assistance programs. He served in Italy, Korea, Tunisia, Libya, Sudan and the Ivory Coast.

On retiring from AID, Mr. Heuser lived in the Tuscany region of Italy, where he restored a 16th-century monastery and grew grapes for Chianti wine. He returned to Washington about 1987.

Survivors include his wife of 48 years, Maria Heuser of Washington; five children, Chilla Heuser-Rousselle of Paris, Alice Heuser of Potomac, Stephen Heuser of London, Tayo Heuser Shore of Narragansett, R.I., and Michael Heuser of Beverly Hills, Calif.; and 13 grandchildren. MARK LEE PATTEN Carpenter

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Course Enrollment
1940-41

[Economics] 43a 1hf. Professor Haberler and Associate Professor Leontief.—International Economic Relations, I. Theory of International Trade.

Total 22: 1 Graduate, 13 Seniors, 3 Juniors, 2 Sophomores, 3 Others.

 

Source: Harvard University. Report of the President of Harvard College and Reports of Departments for 1940-41, p. 63.

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Course Description
1940-41

Economics 43a 1hf. International Economic Relations, I. Theory of International Trade. Half-course (first half-year). Mon., Wed., and (at the pleasure of the instructors) Fri., at 9. Professor Haberler and Dr. Stolper.

The course will deal with the following subjects: Monetary problems of international trade; the pure theory of international trade.

 

Source: Division of History, Government, and Economics Containing an Announcement for 1940-41. Official Register of Harvard University, Vol. XXXVII, No. 51 (August 15, 1940), p. 56.

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Economics 43a
International Trade and Commercial Relations
[1939-40]

During the first half of the term the monetary problems of International Trade will be discussed in the following order:

The theory and measurement of the balance of payments
Gold Standard
Paper standard and purchasing power parity theory
Exchange Depreciation
The transfer problem and capital movements
The present gold problem
Problems of exchange control

Assignments of the first six weeks:

Haberler, Theory of International Trade, pp. 1-117.
Whale, International Trade, Chs. 17-19, 21-23
Department of Commerce, The Balance of International Indebtedness of the United States for 1938.
Graham and Whittlesey, “The Gold Problem,” Foreign Affairs, January, 1938.
Meade and Hitch, Economic Analysis, Part V, pp. 307-355.

 

The second half of the term will be devoted to the pure theory of international trade and to some of its applications. The classical theory will be discussed and confronted with Ohlin’s approach. The concept of the terms of trade will be taken up and some applications of monopoly theory, especially to the problem of dumping, will be treated.

Assignments for the second half of the term:

Meade and Hitch, Economic Analysis, Part V, pp. 356-408.
Haberler, International Trade, Chs. IX-XII, and Ch. XVIII.
Ohlin, Interregional and International trade, Parts I and II.
Viner, J., Memorandum on Dumping (League of Nations).

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003 (HUC 8522.2.1) Box 2, Folder “Economics, 1940-1941”.

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Final Examination
Economics 43a 1hf.
1940-41

[Not found (yet).]

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Course Enrollment
1939-40

[Economics] 43b 2hf. Associate Professor Harris , Drs. Heuser and Stolper.—International Economic Relations, II. Commercial Policy.

Total 18: 11 Seniors, 6 Juniors, 1 Other.

 

Source: Harvard University. Report of the President of Harvard College and Reports of Departments for 1939-40, p. 99.

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Course Description
1940-41

[Economics 43b 1hf. International Economic Relations, II. Commercial Policy.] Half-course (second half-year). Mon., Wed., at 12, and a third hour at the pleasure of the instructors. Professor Haberler, Associate Professor Harris, and Dr. Stolper.

Omitted in 1940-41.

 

Source: Division of History, Government, and Economics Containing an Announcement for 1940-41. Official Register of Harvard University, Vol. XXXVII, No. 51 (August 15, 1940), p. 56.

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Economics 43b
1939-40

Week Subject Reading
Feb. 5-10 General case for free trade and criticism
(Dr. Stolper)
Haberler, Chs. 13, 14.
Robertson, “The Future of International Trade,” Economic Journal, March, 1938.
Feb. 12-17 General effect of tariffs, partial analysis. Preferential tariffs.
(Dr. Stolper)
Haberler, Ch. 15
Feb. 19-March 9 Special tariff arguments. Discussion of some of the Hutchins Committee Report. Schüler and Keynes arguments. Foreign Trade Multiplier.
(Dr. Stolper)
Beveridge, Tariffs, the Case Examined, Chs. 5, 9, 10, 13.
Haberler, Chs. 16, 17, and Ch. 12, §4 review Macmillan Report, Addendum I.
Copland, D.B., “A Neglected Phase of Tariff Controversy,” Q.J.E., 1931.
Anderson, Karl, “Protection and the Historical Situation,” Q.J.E., 1938.
Samuelson, Marion Crawford, “The Australian Case for Protection Re-examined,” Q.J.E., 1939.
Taussig, Chs. 13 and 16.
Suggested reading: Taussig, Chs. 14, 15.
March 11-16 Dumping, anti-dumping duties
(Dr. Stolper)
Haberler, Ch. 18, omitting the graphs.
Robinson, J., Economics of Imperfect Competition, Ch. 15, sec. 1-4.
Viner, J., Memorandum on Dumping (League of Nations).
March 18-April 20 Other measures, particularly quotas. Exchange Control and Clearing. Exchange Agreements, etc.
(Dr. Heuser)
Haberler, Chs. 19, 20, 21.
Heuser, Control of International Trade, Ch. VI.
Ellis, Exchange Control, Supplement to Q.J.E., 1939, Ch. I.
Ellsworth, Chs. IX, X.
April 22-27 Tariff History: The glass industry.
(Dr. Davis)
Probably Taussig, Tariff History.
April 29-May 4 Reciprocal Trade Agreements
(Dr. Stolper)
Tasca, Reciprocal Trade Policy, selected chapters.

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003 (HUC 8522.2.1) Box 2, Both in Folders “Economics, 1939-1940 (2 of 2)” and “Economics, 1940-1941”.

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HARVARD UNIVERSITY
ECONOMICS 43b2
1939-1940

Part I
(One hour and a half)

Take both questions. Write one hour on one of them and one-half hour on the other.

  1. “Territorial jurisdiction over a particular area can never be of economic advantage as long as there is free trade in commodities.” Do you agree?
  2. Discuss the relative merits of general depreciation, discriminating exchange rates, and export subsidies as means of restoring equilibrium after a period of strict exchange control.

Part II
(One hour and a half)

Answer question 3 and two other questions.

  1. Take (a), (b), (c), or (d) only.
    1. Do you think that Marshall’s argument for free trade are applicable to the United States of to-day?
    2. Outline the reciprocal trade agreements program of the U. S. A. and its probable effects on various sectors of the American economy. Do you think the program leads towards increased bilateralism or towards greater free trade?
    3. “Increased competition from newly industrialised countries compels the older industrial countries to choose between higher tariffs or lower standards of living.”
    4. It has been claimed that the protective effect of an import quota and a tariff combined are cumulative. Discuss with regard to the effects in the importing country as well as in the exporting countries.
  2. If a country’s exports are subject to foreign tariffs it cannot improve its position by levying tariffs on its imports. Give your considered opinion of this assertion.
  3. Under conditions conducive to a flight of capital [,] restrictions on capital exports may fail completely to bring about a permanent improvement in the balance of payments. Discuss.
  4. The total volume of trade between two countries under exchange clearing is just as likely to increase as to decrease. Discuss with respect to clearings between (a) a free country and a control country, (b) two control countries.
  5. “The operation of the foreign trade multiplier necessitates reconsideration of the proposition that employment and national income can never be increased by the introduction of tariffs.” Discuss.

Final. 1940.

 

Source: Harvard University Archives. Faculty of Arts and Sciences. Papers Printed for Final Examinations. History, History of Religions,…Economics,…Military Science, Naval Science (June, 1940) in Harvard University. Final examinations, 1853-2001 (HUC 7000.28) Box 5.

Image:  Haberler, Leontief and Harris from Harvard Album 1942.

Categories
Princeton Suggested Reading Syllabus

Princeton. Graduate Banking and Money Course Outlines. F.W. Fetter, 1931-32

 

 

Frank Albert Fetter‘s son, Frank Whitson Fetter, taught money and banking at Princeton. Material from his undergraduate course Economics 401 for 1933-34 has been posted earlier. Following a short obituary for Frank Whitson Fetter, I have transcribed the course outlines and readings for his Banking (first semester) and Money (second semester) courses. I have included a list of the reading assignments that come from Frank D. Graham’s money course of the previous year. It is interesting to note that a full half of Fetter’s second semester money course was devoted to the history of monetary economic theories and monetary history with only the last half devoted to monetary theory.

______________________________

Frank Whitson Fetter *26
By Princeton Alumni Weekly

FRANK WHITSON FETTER aged 92, distinguished economist, monetary authority, and professor, died July 7, 1991, in Hanover, N.H. Born in San Francisco, Prof. Fetter earned his bachelor’s degree from Swarthmore College in 1920. In 1922 he received a master’s degree from Princeton, followed in 1924 by a second master’s degree from Harvard, and then he received his doctoral degree in economics from Princeton in 1926. His teaching career spanned more than 40 years, interspersed with service to our government in Washington and to several other countries in Latin America. He taught economics as a professor or visiting lecturer at Princeton, Haverford College, Johns Hopkins, the Univ. of Wisconsin, Northwestern Univ., and Dartmouth College. In 1937 he was named a John Simon Guggenheim Memorial Fellow. His most distinguished work, published in 1965, was entitled “Development of British Monetary Orthodoxy, 1797-1875.”

His first wife died in 1977. He married a second time in 1978, and his second wife also predeceased him, in 1985, Deep sympathy is extended to his daughter, two sons, and extended family of grandchildren, stepsons, and cousins.

The Graduate Alumni, Graduate Class of 1926

Source: Princeton Alumni Weekly

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ASSIGNMENTS IN BANKING 507

First Assignment, October 7, 1931.

Hoggson [, Noble Foster], Banking through the ages.
Martin [, Frederick], Stories of Banks and Bankers.
History of Banking in all the leading nations, Vol. II, pp. 1-29.

Second Assignment, October 14, 1931.

Andréades [, Andreas Michael. History of the Bank of England], pp. 1-186
Conant [, Charles A. A History of Modern Banks of Issue (5th ed.)], Chs. 4 and 5
Richards [, Richard D. The Early History of Banking in England], entire.

Third Assignment, October 21, 1931.

Individual reports on Banking History to 1914–
Germany, Canada, France, Scotland, Russia, England and U.S. Colonial only.

Fourth Assignment, October 28, 1931.

Individual reports (continued)
Reading for all –

White [, Horace. Money and Banking illustrated by American History, 5th edition], Book II, Chs. 1 and 2; Book III, Chs. 4, 5 and 16
Dunbar [, Charles F. The Theory and History of Banking, 3rd ed.], pp. 132-219
Conant, pp. 38-77, 138-166, 182-208, 386-412
Adam Smith, Book II, Ch. 3, “digression concerning banks of deposit.”

Fifth Assignment, November 4, 1931.

Bagehot [Walter. Lombard Street (Hartley Withers edition, 1920)], Chs. 1, 2, 3, 5, 7 and 12.
Powell [, Ellis T. The Evolution of the Money Market (1385-1915)], pp. 142-194, 243-321 and skim over pp. 322-410
Adam Smith, Book II, Ch. 2

Sixth Assignment, November 11, 1931.

Powell [, Ellis T. The Evolution of the Money Market (1385-1915)], pp. 411-705
Gregory, Vol. II, pp. 1-50

Seventh Assignment, November 18, 1931.

Banking in the U.S. up to 1860:

Miller, entire
Myers, Part I
Original documents (see bibliography)

Eight Assignment, November 25, 1931.

Finish Banking in U.S. to 1914

Myers, Part II and complete last week’s assignment
Notice to documents on Independent Treasury and its abolishment (see bibliography).

Ninth Assignment, December 2, 1931

State Banks, Trust Companies, Savings Banks and Investment Banks in the U.S.

Smith, Chs. 1-8 and 12-16
Barnett, Intro. and Chs. 1, 4, 5, 7 in Pt. I, and Ch. 2 in Pt. II.
White, Book III, Chs. 9-11, 14, 15, 17, 18, 19 and 20
Moulton, Chs. 13, 14, and 15 and 18
Galston, syndicate operations, pp. 1-36
Pujo Report, pp. 55-106.

Rolph reports on Tippetts

Tenth Assignment, December 9, 1931

The Federal Reserve System

Kemmerer, ABC entire
Kemmerer, S.V. study (Gresham reports)
Wall, Bankers Credit Manual (Hand reports)
Brandeis, Other People’s Money (Smith reports)
Rodky, Chs. 11, 12, 13 and App. D.
Willis and Edwards, Ch. 11
Dunbar, Ch. 3
Dewey & Shugrue, Ch. 9
Willis and Edwards, pp. 9-13, Chs. 2 and 3
Dewey & Shugrue, Chs. 3, 4, 6
(Last five on the subjects “the bank statement” and “credit economy”)
Also referred to White on the bank statement.

Eleventh Assignment, December 16, 1931

Deposits

Dewey & Shugrue, Ch. 11
Willis & Edwards, Chs. 7 and 13
Rodky, Ch. 3

Interbank Relationships

Watkins, Ch. 7
Dewey & Shugrue, Ch. 21
Willis & Edwards, Ch. 15

Financing Business

Moulton, Ch. 10
Willis & Edwards, Ch. 9
Dewey & Shugrue, Chs. 13 & 26
Federal Reserve Bulletin, 1921, pp. 920-6, 1052-7
Phillips, Chs. 1 & 2

Bank Administration

Willis & Edwards, Chs. 4-6,
Dewey & Shugrue, Chs. 7 and 8

Reports

Lin on Owens & Hardy
Rolph on Riefler
Hinkle on Hanson, Theories of the Business Cycle
Dzidjuziski on Snyder
Gresham on Haney
Huber on Pigou
Smith on Kuznets
Hand on Spahr (Clearings & Coll.)

Twelfth Assignment, January 6, 1932

Bank Credit and Prices:

Keynes, Treatise on Money, Chs. 2, 3, 18, 23, 24, 25 and 26
Munn, Bank Credit, Chs. 1, 2 and 3
Rodky, The Banking Process, Ch. 16
Phillips, Bank Credit, Chs. 3, 4, 5 and 7-12
Willis & Edwards, Chs. 28, 29 and 30
Federal Reserve Bulletin, 1930, pp. 400-5, 456-65, 519-26; 1931, pp. 160-6, 435-9, 121-4, 551-7, 495-8.
Study statistics in last Federal Reserve Bulletin.

Reports

Lin on Munn and Cr. and its management
Hand on Dowry, Monetary Banking Policies
Gresham on Einzig, International gold movements
Rolph on Edie, Cap. money market and gold
Hinkle on Edie, Money, Bank Credit and Prices
Huber on Burgess, Reserve Banks and Money Market
Dzidjusizki on Young, Ind. Cr.

Thirteenth Assignment, January 13, 1932

Branch, Chain and Group Banking
Bank Competition

Senate Hearings on Consolidation of National Banks, 1926, S. 1782 and HR 2, 69th Cong., 1st sess. Following pages—pp. 1-45, 53-102, 133-137, 143-160, 175-194 (important opposition), and pp. 204-211, 218-222, 227-236, 299-306, 328-29, 338-346, 354-59.
House Hearings on Branch, Chain and Group Banking, HR 141, 71st Cong., 2nd sess., 1930. Following pages: 3-40, 43-7, 88-90, 105-109, 113-18, 154-5, 203-4, 216-18, 226-32, 259-62, 268-71, 420-47, 450-60, 787-800, 808-13, 882-90, 919-24, 1037-47, 1169-73, 1404-15, 1535-67, 1569-79, 1665-88 and 1752-80. Last few particularly important in opposition.

Reports

Hand on Willitt, Sel. art.
Lin on Osterlenk, Br. Bk.
Rolph on Jamison, Mgt. of unit banks
Hilken on Starves, 60 yrs of br. bk. in Va.
Gresham on Lee, Pr. of Agr. Cr.
Huber on Lawrence, Bank Conc.
Dzidjuziski on Collins Rural Bank Reform
Austin, Leg. bk. wrecking
Smith on Cartinhour,
Hilken on Borgenson [sic, “Bergengren” is correct] cooperative banking.

Fourteenth Assignment, January 20, 1932

Gregory, Vol. II, pp. 307-91; Annual Report of the Federal Reserve Board for 1930, pp. 232-42, 252-7, 260-2, 269-72; Federal Reserve Bulletin, 1930, p. 519; Federal Reserve Bulletin, 1931, pp. 571, 374-8; Federal Reserve Bulletin, 1930, pp. 400-5, 456-64; Federal Reserve Bulletin, 1931, pp. 121-4, 160-6, 435-9, 495-8, 551-7.
Senate Hearings before the Committee on Banking and Currency on Brokers’ Loans, S. Res. 113, 70th Cong., 1st sess. (1928), pp. 2-41, 51-96.
Hearings of sub-committee of the Senate Committee on Banking and Currency on the Operation of the National and Federal Reserve Banking System, S. Res. 71, 71st Cong., 3rd Sess., Appendix, Pt. 6, Fed. Res. Questionnaire, pp. 701-727 and 748-840.
Report of the Committee on Bank Reserves of the Federal Reserve System, GPO, 1931, pp. 5-26.

Reports

Hubert, Beckhart, Disc. policy, and Spahr, Federal Reserve and control of credit.
Hilken, Einzig, Fight for financial supremacy.
Hand, Shaw, Central banks theory and Mlynarski, gold and central banks.
Rolph, Kisch and Elkin on centrol banks and Rogers, America weighs her gold.
Lin, on Burgess, Gov. Strong’s federal reserve policy, and Peel, Economic War.
Gresham, Peddie, dual system of stabilization and Reed, Federal Reserve Policy.
Dzidjuziski, Hirst, Wall St. and Lombard St.
also, as follows on Annual Reports of the Federal Reserve Board:

Huber, 1924, pp. 1-18
Hilken, 1925, pp. 1-24
Hand, 1926, pp. 1-18
Rolph, 1927, pp. 1-20
Lin, 1928, pp. 1-19
Gresham, 1929, pp. 1-10
Dzidjuziski, 1930, pp. 1-19
Smith, 1916-1923.

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Assignments in Graduate Course in Money, 1931.
(Given by Frank D. Graham).

  1. ✓Carlile, W.W.- The Evolution of Modern Money.
    ✓Nicholson, J. S.- Money and Monetary Problems [sic, “A Treatise on Money and Essays on Monetary Problems, 3d ed.], Part I to p. 161.
  2. ✓Hepburn, A.B.- History of Currency in The United States, Chapters 1-13, 15, 16, 20, 21, 28, 29.
  3. Fisher, Irving—Purchasing Power of Money, Whole book except Appen.
  4. ✓Anderson, B.M.- The Value of Money. First half.
  5. ✓Anderson, B.M.- The Value of Money. Finish book
  6. ✓Gregory, T.E.- Select Documents [Select Statutes, Documents, & Reports Relating to British Banking]. Book I-all; Book II, p. 307 to end.
  7. ✓Keynes- Treatise on Money. Vol. I
  8. ✓Keynes- Treatise on Money. Vol. II
  9. Foster and Catchings.- Profits.
  10. ✓Lawrence [, Joseph Stagg]- Stabilization of Money [sic, Stabilization of Prices: A Critical Study of the Various Plans Proposed for Stabilization (1928)”], in particular Ch. 20-27.
  11. ✓Hawtrey, R.G.- Currency and Credit. (New ed.) Pay particular attention to theory of business cycles.
  12. Mitchell, W.C.- Business Cycles. Do first half, theoretical and statistical part, but omit annals.

✓Indicates that are to be given in 1932.

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[Handwritten notes]
Graduate Course (Money)

Graham, with 12 meetings, gave only 1 to U.S. monetary history, 1 to evolution of money, 1 to English monetary history, and the remaining 9 to theory. Except for Carlile and Nicholson, all of theory is of past 25 yrs., and most of it of past 10 years.

Believe should be some modifications, along following lines:

  1. More U.S. monetary history, perhaps 3 or 4 weeks.
  2. Emphasis on Bullion controversy, spending 2 or 3 weeks.
  3. Historical development of Theory, tying it in with particular relations to monetary problems of the day.
    Bodin—Locke—Hume—Steuert—Smith.
  4. Present controversy over gold standard
  5. Bimetallism, and the silver issue.

In everything, give the men more history, and more in original sources.

______________________________

[Handwritten Notes]
Graduate Course in Money—1932.

Term Reports.

Men who have to turn in a paper, may elect to do so.

Short Term Reports

These are not to involve any reading outside of the regular assignments. They should trace certain ideas, and their developments, thru our regular reading. Each man should take 2 (ordinarily one, but class small this year).

Suggested topics:

  1. Development of views on causal influences and price changes [Helfen]
  2. Changing emphasis in monetary theory.
  3. Development of monetary theory, and its background of practical problems of monetary reform.
  4. Meaning of “quantity theory”
  5. Meaning of “fiat money”, or “fiat theory” of prices.
  6. Concept of velocity and its effect on prices.
    6a. Proportionality between money & prices. [Platz]
  7. Idea of stability of gold (or silver).
  8. Necessity for money to be based on something with commodity value (i.e., has a power in exchange outside of money use).

(Should run between 5+10 pp. Type—with carbon for me).

Special Reports.-

In some meetings, will have special reports, so as to cover more ground.
In particular will do this on Bullion Controversy, and U. S. Monetary History.

______________________________

ASSIGNMENTS IN ECONOMICS 508 (GRADUATE COURSE IN MONEY)
Princeton University—Second Semester—1931-32

February 10

A. E. Monroe, “Monetary Theory Before Adam Smith,” pp. 3-146.
W. W. Carlile, “The Evolution of Modern Money,” pp. 1-77, 120-137.

[February] 17

A. E. Monroe, “Early Economic Thought.”

Nicole Oresme, “On The First Inventions of Money,” pp. 79-102.
Jean Bodin, “Reply to the Pardoxes of Malestroit,” pp. 123-41.

John Locke, Works, Vol. II, “Some Considerations of the Consequences of the Lowering of Interest and Raising the Value of Money,” pp. 3-55.

[February] 24

A. E. Monroe, “Early Economic Thought.”

David Hume, “Of the Balance of Trade,” pp. 323-38.
Richard Cantillon, “On the Nature of Commerce in General,” pp. 247-79.
David Hume, Works, “Of Money,” pp. 317-32.

Sir John Stewart, [sic, “James Steuart” is correct] “An Inquiry into the Principles of Political Economy,” Book II, Chaps. 26, 28, 29, Book III, Chs. 1-7.

March 2

Adam Smith (Cannan ed.)

Vol. I, Ch. 5 (pp. 32-48), “Of the Real and Nominal Price of Commodities,” pp. 177-216.
“Digression on Silver,” pp. 285-312.
“Banking,” Book IV, Ch. 1 (pp. 396-417) Mercantile System.
(This not a regular assignment, but recommended that men glance over it.)

J. H. Hollander, “The Development of the Theory of Money from Adam Smith to David Ricardo,” Q. J. E., Vol. 25, p. 439.

David Ricardo, “Three Letters on the Price of Gold”; “The High Price of Bullion,” pp. 1-66.

Reports on following:

By Platz: Lord King, “Thoughts on the Restriction,” pp. 1-86.
By Hilen: “An Inquiry into the Nature and Effects of Paper Money.”
By Rolph: Walter Boyd, “A Letter to Pitt,” pp. 1-80; Sir F. Baring, “Observations on the Publication of Walter Boyd.”

March 9

Charles Bosanquet, “Practical Observations on the Report of the Bullion Committee,” pp. 1-110.
David Ricardo, “Reply to Mr. Bosanquet’s Practical Observations on the Report of the Bullion Committee,” pp. 1-141.
J. W. Angell, “The Theory of International Prices,” pp. 40-71.

If not familiar with The Report of The Bullion Committee, glance thru it. The argument is essentially the same as found in Ricardo. It is available in convenient form in Edwin Cannan, “The Paper Pound.”

Reports by the following:

By Carter: N. J. Silberling, “Financial and Monetary Policy of Great Britain During the Napoleonic Wars,” Q.J.E., Vol. 25, Feb. and May, 1924, pp. 214-73, 397-439.
By Rolph: Jacob Viner, “Angell’s Theory of International Prices,” J.P.E., Oct., 1926, pp. 601-11 only.

March 16

Establishment of Gold Standard in England

English Monetary Debates and Legislation of 1717, Report of Paris Monetary Conference, pp. 315-16.
Sir Isaac Newton’s Report of 1717, Paris Conference, pp. 317-20.
Lord Liverpool, “A Treatise on the Coins of the Realm,” Chs. 1-5, 17-19, 29, 30.
English Monetary Law of 1816, Art. 1-4, 11-13, Paris Conf., pp. 373-77.

American Monetary History

Morris Report of 1782, Paris Conference, pp. 425-32.
Jefferson Report, Paris Conference, pp. 437-43.
Hamilton’s Report on a Mint, Paris Conference, pp. 454-84. (Hamilton’s Report may be found in his Works, and in a number of other places.)

March 23

Letter of William J. Crawford, Sec. of Treas., on Exportation of Coins of The United States. American State Papers, Finance, Vol. III, pp. 393-95. No. 549, 15th Cong., 2d Session.
Report of Lowndes Committee of 1819. American State Papers, Finance, Vol. III, pp. 398-401. No. 551, 15th Cong., 2d Session.
Report on Currency by Committee of House of Representatives, Feb. 2, 1821. Paris Conference, pp. 554-57.
Ingham Circular Letter on Relative Value of Gold and Silver. Paris Conference, pp. 602-29.
Gallatin’s Report on Relative Values of Gold and Silver. Paris Conference, pp. 589-97.
Report of Sec. of Treas., May 4, 1830. Paris Conference, pp. 558 and seq.
Report of Sanford Committee, Jan. 11, 1830. Senate Document 19, 21st Cong., 1st Session.
House Resolution of 1832. Paris Conference, p. 677.
Report of Director of Mint to House of Rep., 1832, Paris Conf., p. 678.
Report of White Committee, Feb. 19, 1834. House of Representatives, Report 278, 23d Congress, 1st Session.

April 6

D. K. Watson, “History of American Coinage,” Chs. 6, 7, 10, 11.
F. W. Taussig, “Silver Situation in The United States,” pp. 2-112.

April 13

W. H. Harvey, “Coin’s Financial School.”
Horace White, “Coin’s Financial Fool.”
(Glance thru these two books, but do not make a careful study of them.)
Willard Fisher, “Coin and his Critics, “ Q.J.E., Vol. 10, Jan. 1896, p. 187 and seq.
J. L. Laughlin, “Principles of Money,” (1903 ed.), pp. 281-419.
Scott, “Money and Banking,” pp. 50-6.

April 20

Irving Fisher, “The Purchasing Power of Money,” pp. 1-348.
Proceedings of 1910 Meeting of American Economic Association, “Causes of Recent Price Changes,” pp. 27-70. (Fisher’s discussion, pp. 37-45, may be passed over, as it is all in his Purchasing Power of Money.)

April 27

B. M. Anderson, “The Value of Money,” pp. 1-291.

May 4

B. M. Anderson, “The Value of Money,” pp. 292-591.

May 11

J. M. Keynes, “A Treatise on Money,” Vol. I.

May 18

J. M. Keynes, “A Treatise on Money,” Vol. II.

May 25

J. S. Lawrence, “The Stabilization of Prices,” Part III, pp. 187-473.

June 1

Reports on Foster and Catchings, “Profits;” Edie, “The Banks and Prosperity.”

 

Source: Duke University. David M. Rubenstein Library. Economists’ Papers Archive. Papers of Frank Whitson Fetter, Box 55, Folder “Teaching, Ec 507-508 Money (Princeton) 1931-32”.

Image Source: (ca. 1937) John Simon Guggenheim Memorial Foundation.

 

 

 

 

 

 

 

Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. Undergraduate International Trade. Enrollment, Readings, Exam. Harris, 1949

 

Seymour Harris was a Harvard man from his undergraduate years through his retirement from his alma mater. He served many terms as a government economic adviser and after Harvard moved on to be the chair of economics at the University of California, San Diego. This post provides a course description, enrollment data, reading list and examination questions for his winter semester course 1949-50 “International Trade”. An earlier post provides the outline the 1933 version of the course “International Trade and Tariff Policies”.

Seymour Edwin Harris was born September 8, 1897 in New York City. He received an A.B. in 1920 and a Ph.D. in 1926 from Harvard University. From 1922 to 1964, Dr. Harris taught economics at Harvard University, where he received a full professorship in 1954, and served as the chairman of the department of economics from 1955 to 1959. During World War II, Dr. Harris was involved in several wartime planning projects. From 1954 to 1956, Dr. Harris became chief economic advisor to Adlai Stevenson. He then served Senator John F. Kennedy in the same capacity and was chosen as a member of President Kennedy’s task force on the economy. In 1961, Dr. Harris was named as chief economic consultant to Douglas Dillon, Secretary of the Treasury. During the Kennedy administration. Dr. Harris, a proponent of Keynesian economics, was a member of Walter W. Heller’s New Frontiersmen, which persuaded President Kennedy that the stimulation of the economy was more important than a balanced budget and tax cuts and government spending could counter threats of a recession. In 1963, Dr. Harris became the chairman of the department of economics at the University of California at La Jolla. At the same time, he served as a chief economic advisor to the Johnson administration. [Source: John F. Kennedy Presidential Library, Finding Aid to the Papers of Seymour E. Harris]

Harris had quite a reputation for grinding out volumes of edited papers (written by others):  From a 1962 or 1963 student skit:  Professor Gerschenkron’s alleged advice for Matthew (the Evangelist): “I wanted Matthew to rewrite his paper for the Quarterly Journal and call it ‘Christ as a proto-Keynsian’ [sic] But no, he was a very strong-willed boy and he brought it out in a syposium [sic] edited by Seymour Harris, called the Bible, essays in honor of God.”

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Course Description

Economics 143a (formerly Economics 43a). International Trade

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

This course deals with the theory and practice of foreign trade and capital movements, including the importance of foreign trade, the manner of increasing its amount, its relation to the domestic economy, the problem of exchange rates, exchange control, international organizations in their relation to trade and capital movements. Political, economic, and administrative aspects are considered also.

Source: Harvard University Archives. Box 6, Courses of Instruction (HUC 8500.16), Final Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences for the Academic Year 1948-49, p. 75

_________________________

Course Enrollment

[Economics] 143a (formerly Economics 43a). International Trade. (F) Professor Harris.

Total 120: 9 Graduates, 46 Seniors, 36 Juniors, 11 Sophomores, 1 Freshman, 12 Radcliffe, 5 Others.

Source: Harvard University. Report of the President of Harvard College and Reports of Departments, 1949-1950, p. 43.

_________________________

Course Readings

Economics 143a
International Trade

  1. National Income and the Balance of Payments—4 weeks
    Relation of domestic policies and the balance of payments; the balance of payments of the United States and the United Kingdom; capital movements and reparations problems; dollar shortage and the E.R.P.
    Assignment

    1. *Harris; The European Recovery Program, pp. 1-120, 185-206, 272-276
    2. *Harrod; Are These Hardships Necessary? pp. 1-103
    3. United Nations; A Survey of the Economic Situation and Economic Prospects for Europe, pts. 2-5
  2. Regional Problems in the Balance of Payments—1 week
    No assignment.
  3. Industrialization and International Competition—1 week
    No assignment
  4. Monetary Aspects of International Trade—3 weeks
    Assignment

    1. Harris: The New Economics, pp. 246-293, 323-400
    2. *Ellsworth: International Economics, Part 1, Chs. 7, 9-11
  5. The Case for Free Trade and Obstacles to Trade—3 weeks
    Division of labor; comparative costs; tariffs and other obstacles; international commodity agreements and distribution of raw materials.
    Assignment
    Ellsworth, Part II, Chs. 1-5, 7-9
  6. The Problem of Allocation of Resources and Comparative Costs
    Assignment
    Ellsworth, Part I, Chs. 3-5

Reading Period Assignment—One of the Following:

  1. Staley: World Economic Development
  2. Buchanan and Lutz: Rebuilding the World Economy
  3. Marshall: Money, Credit, and Commerce, Pt. III
  4. Harris: Foreign Economic Policy for the United States

*To be bought.

Source:   :   Harvard University Archives. Syllabi, course outlines and reading lists in economics, 1895-2003. (HUC 8522.2.1), Box 4, Folder “Economics, 1949-50 (2 of 3)

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Course Final Examination

HARVARD UNIVERSITY
ECONOMICS 143a
International Trade

Spend forty-five minutes on each question. It is strongly suggested that you spend ten minutes assembling and organizing your thoughts before beginning each essay.

  1. Answer (a) or (b):
    1. It is a prerequisite for the establishment of interregional trade that relative prices would be different in one region from those in another if the regions were prevented from trading with one another. Why does this condition commonly occur, how does it lead to interregional trade, and in what way is that trade beneficial to the participating regions?
    2. Much of the theory of international trade attempts to explain how equilibrium in the balance of payments will be maintained by automatic tendencies. Present as fully as you can in the allotted time a classification and explanation of the forces working to frustrate these automatic tendencies and produce persistent dis
  2. Answer (a) or (b):
    1. Exchange depreciation has been resorted to in depression for reasons very different from those advanced for its use in periods of full employment. Compare and contrast the advantages and disadvantages of depreciation in these two situations, making use of specific illustrations.
    2. The incorporation of national income analysis into international trade theory has led economists to distinguish helpfully corrective international economic policies from so-called beggar-thy-neighbor policies. How would you make such a distinction, and how effectively can it be applied?
  3. Answer (a) or (b):
    1. Comment on the relevance of the domestic policies of ERP countries for the attainment of international equilibrium by 1952.
    2. Discuss the reciprocal trade agreements program of the United States with reference to (1) the general arguments for and against tariffs, and (2) the limitations of tariff policy as a means of achieving international economic equilibrium.
  4. Answer one of the following with reference to your reading period assignment:
    1. What basic changes in the world economic structure have resulted from two World Wars, and how do they obstruct the reestablishment of stable multilateral trade?
    2. On what conditions does Staley base his case that, for existing industrial areas, it is possible to make the advantages of the economic development of new areas far outweigh the disadvantages? Discuss these conditions critically.
    3. Diagnoses of the widespread “dollar problem” differ according to (1) the definition of equilibrium adopted, and (2) the particular country under discussion. Discuss both these sources of variation in analysis. (Treat either one at greater length than the other if you wish.)
    4. Marshall is noted for his development of the theory of international supply and demand (commonly called “reciprocal demand”) as the determining influence on the barter terms of trade. Develop this part of his theory, and comment on some aspect or aspects of its relevance to current problems discussed in this course.

Final. January, 1950.

 

Source: Harvard University, Faculty of Arts and Sciences. Papers Printed for Final Examinations; History, History of Religions, Government, Economics,…,Military Science, Naval Science. February, 1950.

Image Source: Seymour Harris in Harvard Class Album 1947.