The first four pages of written notes taken by Milton Friedman for Jacob Viner’s course, International Trade and Finance, provide something of a course syllabus and list of suggested reading assignments. The notes are undated but in his civil service job applications, Friedman provided a list of courses by university, semester or quarter and course instructor. Milton Friedman took Jacob Viner’s course during the Winter quarter (January to mid-March) of 1933. Generally Friedman’s handwriting is easy to read, knowing the context, though some checking of authors’ names was required. I provide one sample from a particulary difficult five or six lines and welcome any alternative readings. Otherwise I am extremely confident in my transcription.
Elsewhere in his files, Milton Friedman had what appears to be a later photocopy of an exam for this course. The folder is labelled “Biographical: Class Exams circa 1932-1938”. “University of Chicago” and “Milton Friedman” are handwritten on the photocopy of the original typed copy of the exam.
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International Economic Relations: Course Description
[Economics] 370. International Trade and Finance.—This course deals with the theory of international values, the mechanism of adjustment of international balances, foreign-exchange theory, the international aspects of monetary and banking theory, and tariff theory. Prerequisite: Economics 301 or its equivalent. Winter, Viner.
Source: University of Chicago. Announcements. Arts, Literature and Science, vol. XXXII, no. 12 (for the sessions of 1932-33), p. 361.
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From Milton Friedman’s Course Notes
✓Mun England’s Treasure Ch. 2, 3, 4, 5, 20, 21
✓Hume Essays Moral & Political. Vol I—Essays (of Commerce/of the Balance of Trade)
✓Viner Early English Theories. J.P.E. June & Aug, 1930. All of June article. pp. 418-431, 442-448 in Aug. article.
Bullionist Controversy
✓Silbering, Fin[ancial] & Mon[etary] Policy [of Great Britain During the Napoleonic Wars] Qu. Jour of Ec 1924
✓Angell ch III & Appendix A
✓Ricardo High Price of Bullion in works also in Gonner. Ricardo’s Essays
✓Viner Canada’s Balance, pp. 191-20[last digit smeared, might be “4”]
J.P.E. Oct 1926 pp. 600-608
✓J.S. Mill Principles Bk III Ch XXIV
✓Walker Money. Ch XIX & XX
Mill Principles Book III, Ch XIX, XX, XXI, XXII
Taussig, International Trade. Ch XVII, XVIII
1) Canada’s Balance pp. 202-212, 145-190
Angell pp. 170-174, 505-510
2) Ohlin. Is the Young Plan Feasible? Index Feb 1930
3) Angell-Q.J.E. May 1928
Rogers in Recent Ec. Changes Vol. II, Ch. II
Taussig, Int. Trade 325-332
4) Moulton on War Debts in Schanz Festgabe [Festgabe für Georg von Schanz zum 75 Geburtstag. Tübingen: J. C. B. Mohr. 1928. 2 vols. Papers by Beckerath, Lotz, Jèze, Einaudi, Stamp, Moulton, and others.]
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with respect to 1) find answer:
- to what factor does Viner assign & to what factor does Angell says Viner assigns the immediate responsibility for the rise in prices. Also to what fact[or] he assigns it.
- What role does Viner assign & what role does Angell say Viner assigns & what role does Angell assign to the expansion of Canadian Bank loans.
- What is order of priority acc[ording] to Viner & acc[ording] to Ang[ell] of fluctuation in Canada bank demand liabilites & outside reserves.
- (cf. th[eory] by Mill or Tau[ssig]) If outside reserves was held as gold in Canada what role in the mechanism would the classical theory assign to them
Comparative Costs
Ricardo-Principles ch 7
Viner Welt-Archiv Oct, 1932
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Manoïslesco Theory of Protection [Reviewed by Viner in JPE, Feb. 1932, pp. 121-125]
Grunzel Joseph. Handbuch der internationalen Handelspolitik (probably)]
Cherbuliez [, Antoine] Précis de la Science E., pp. 375-391
Walras “Théorie du Libre Échange. Revue d’Économique Politique XI (1897) pp. 651-664
or ‘Études d’Éc. Pol. Applique, pp. 286-304 [1898 reprint of previous article].
Pareto-Cours
Angell
Taussig. Int. Trade
Weber, Alfred. “Die Standortslehre und die Handelspolitik Archiv für Sozial. XXXII (1911) 667-688
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Choose one & in about 10 days give appraisal thereof.
J.S. Mill Principles Bk III Ch XVII XVIII
Marshall. Money Credit & Commerce Bk III Ch VI, VII, VIII Appendix J[?] pp. 330-342
Terms of Trade
Taussig: Int. Trade see Index under Barter Terms of Trade.
Yntema Ch. 5.
Wilson Capital Imports, Ch 4.
Depreciated Paper
Taussig, Int. Trade 336-408
Graham Exchange Prices & Prod. in Germany. 97-99; 117-149
Cassel Money & Foreign Exchange after 1914, pp. 137-186
Cassel The Treatment of Price Problems. Ec J. Dec 1928
Ohlin International Trade Relations. Index Aug 1930
Bastable. Theory of Int’l Trade Ch 6.
League of Nations. [Financial Committee] Report of Gold Delegation, 1932 [Official no.: C.502.M.243.1932.II.A]
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Read letter in last issue of Economica of a letter on the true something or other.
Source: Hoover Institution. Milton Friedman Papers, Box 120, Bound notes (Economics 370/J. Viner/10 a.m. S.S.B. 107).
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Final Exam Questions Winter Quarter 1932-33
Economics 370
- Write notes on the following:
- “Increasing Returns” and the Comparative Cost Doctrine
- The “Law of Reciprocal Demand” and the “Equation of International Exchange.”
- The possibilities of partial specialization under free trade.
- a. Discuss the part played by international shifts in money incomes in adjusting balances of payments to international capital movements.
b. Explain briefly the part played in the lending country in connection with the same process by bank deposits and by bank loans. - “The principles governing the rate of exchange may be illustrated by the following mechanical example. Represent two countries by two cisterns, and their stock of legal tender money by water, so that the depth of the water in either cistern may be taken to be the general level of prices in the corresponding country. If water cannot pass from either cistern to the other any divergence of depth may be produced at will by adjusting the respective quantities of water in them. This corresponds to the case of countries with independent currencies. If, however, the water can flow through a pipe leading from the base of one cistern to the base of the other, the depths in the two cisterns will always be identical.”
Hawtrey, Good and Bad Trade, 1913, pp. 109-110.
Comment briefly.
Source: Hoover Institution. Milton Friedman Papers, Box 115, Folder 13. “Biographical: Class Exams circa 1932-1938”.