A course on commercial and financial crises has been offered at Harvard nearly every year during the first half of the 20th century. The course was first offered by A. Piatt Andrew (Harvard Ph.D., 1900) who taught at Harvard until 1908. He went on to National Monetary Commission fame and later served in the U.S. Congress during the last fifteen years of his life.
Economics in the Rear-view Mirror has a biographical page for A. Piatt Andrew. Also available is the reading list for A. Piatt Andrew’s money course, Economics 8, from 1901-02.
_______________________
Warren Samuels reported on the 1905-06 course “Commercial Crises and Cycles of Trade” (Economics 12b):
Samuels, Warren J. The Teaching of Business Cycles in 1905-6: Insight into the Development of Macroeconomic Theory. History of Political Economy, vol. 4 (Spring 1972), pp. 140-62. Based on 177 pages of notes by Harvard senior Robert Lee Hale.
_______________________
Pro-tip: student lecture notes for Andrew’s financial crises course, 1905
Robert Lee Hale Papers at Columbia University Archives.
According to finding aid, the notes are in Box 5, Folder 67 “Lecture notes, Economics 12b, fall 1905”.
_______________________
1902-03
Course as Coming Attraction
It is expected that Professor Taussig will conduct his courses in economics next year. The subject mater of course 8 has been divided into three parts: 8a. on money by Dr. Andrew; 8b on banking by Dr. Sprague; and 12a on international trade and payments by Dr. Sprague. A new half-course has been added on the history and theory of commercial crises by Dr. Andrew. Courses 10 and 11 which were formerly given by Professor Ashley as full courses in alternate years will both be given in 1902-03 as half-courses by Mr. Gay. Course 5 on railways etc. will be given as a half-course. Economics 14 on methods of Social reform will be made a full course; 9 and 9a are combined into a full course on labor and industrial organization and will be given by Professor Ripley who has recently been appointed a full professor in the department.
Source: The Harvard Crimson. Changes in Courses for 1902-03. May 24, 1902.
* * * * * * * * * * * * * * *
Course Enrollment, 1902-03
[Economics] 12b 2hf. Dr. Andrew.— History and Theory of Commercial Crises.
Total 37: 2 Graduates, 9 Seniors, 19 Juniors, 5 Sophomores, 2 Others.
Source: Harvard University. Report of the President of Harvard College 1902-03, p. 68.
* * * * * * * * * * * * * * *
Course Announcement and Description, 1902-03
[Economics] 12b2 hf. History and Theory of Commercial Crises. Half-course (second half-year). Mon., Wed., and (at the pleasure of the instructor) Fri., at 9. Dr. Andrew.
Course 12b will be devoted to the study of the more important crises of the past two hundred years. The phenomena of these crises will be described, and the record of events before and after will be examined with the object of disentangling their contributory causes and their consequences. The influence upon commercial fluctuations of the present organization of industry, of government finance, of foreign trade, of the money supply, of speculation, of banking methods, and of other credit institutions will be considered, as well as questions with regard to periodicity, over-production and over-investment. In connection with these subjects attention will be given to the methods actually employed in dealing with crises, and to proposed reforms designed to prevent or relieve them.
Subjects will be assigned for special reports, and these reports will be presented for discussion in class.
Course 12b is open to students who have passed satisfactorily in Course 1.
Source: Harvard University. University Publications, New Series, No. 55. Faculty of Arts and Sciences, Division of History and Political Science comprising the Departments of History and Government and Economics, 1902-03, pp. 48-49.
* * * * * * * * * * * * * * *
HARVARD UNIVERSITY
ECONOMICS 12b
Final Examination. 1903.
Omit one question.
- “The crisis is practically of nineteenth century origin, and it is an acute malady to which business appears to be increasingly subject.”
Give your opinion of these statements. - In what respects was the English crisis of 1866 peculiar?
- “Commercial crises of the earlier type now belong only to history in England.”
Discuss this statement and explain the situation to which it refers. - Compare the American crises of 1884 and 1893 as regards antecedent conditions, course of events and consequences.
- Describe in their mututal connections the fluctuations in exports and imports of commodities, in gold shipments, and in prices which occur in a normal trade cycle.
Discuss DeLaveleye’s theory of crises. - (a) How far did Jeveons succeed in proving a relation between crises and agricultural conditions?
(b) To what extent can a connection be traced in the United States between trade cycles and crop conditions?
(c) In the case of which crop is the connection closest? - Explain and discuss Professor Laughlin’s theory as to the relations between “normal” and “abnormal” credit and price movements.
- Explain and discuss Rodbertus’ theory of crises.
- Explain and discuss Professor Carver’s theory of industrial depressions.
Source: Harvard University Archives. Examination Papers, 1873-1915. Box 6: Bound volume for 1902-03, Papers Set for Final Examinations in History, Government, Economics,… (June 1903), p. 30.
_______________________
1903-04
Course Enrollment, 1903-04
[Economics] 12b 1hf. Ass’t. Professor Andrew. History and Theory of Commercial Crises.
Total 39: 5 Graduates, 15 Seniors, 10 Juniors, 5 Sophomores, 4 Others.
Source: Harvard University. Report of the President of Harvard College 1903-04, p. 67.
* * * * * * * * * * * * * * *
HARVARD UNIVERSITY
ECONOMICS 12b
Mid-Year Examination. 1904.
Omit one question.
- Discuss the merits and limitations of each of the following sorts of statistics as measures of industrial prosperity:—
Bank clearings, wages, cotton, copper, chemicals, iron and steel, railway net earnings, railway gross earnings.
- Explain the usual relation during a trade cycle,—
- between the number of failures and their liabilities.
- between banking and commercial failures.
- Explain and show the significance of any general differences between the price fluctuations,
- of raw and finished commodities.
- of securities and commodities.
- Compare industrial, political, and financial conditions in the United States in 1903 with those of 1873, 1883, and 1893.
- In what respects have the trade cycles of England differed from those of the United States during the past thirty years?
What is your opinion is the explanation? - Explain what the British government did to restore confidence in 1793, 1825, 1847, 1857, 1866, 1890?
- Upon what occasions within the past twenty years, and by what means, has the American Secretary of the treasury helped to relieve a stringency in the financial centres?
- The following are abstracted statements of the New York City clearing house banks.
| Aug. 5 ‘93 (1) |
Feb. 3, ‘94 (2) |
May 20, ‘99 (3) |
May 23, ‘03 (4) |
|
| Loans | 409 | 420 | 763 | 923 |
| Deposits | 373 | 552 | 902 | 914 |
| Capital | 129 | 133 | 134 | 224 |
| Circulation | 6 | 13 | 16 | 44 |
| Reserve | 79 | 250 | 260 | 238 |
Compare 1 with 2, and 3 with 4, explaining in each case the change in the relations (a) between loans and deposits (b) between deposits and reserve.
- Explain what in your opinion are remediable defects in the American banking regulations, and the best remedies therefor.
- To what extent in your opinion is there periodicity in trade reactions, and to what conditions is it attributable?
Source: Harvard University Archives. Examination Papers, Mid-Years. 1903-04. (HUC 70000.55). Box 7.
_______________________
1904-05
Course Enrollment
[Economics] 12b 1hf. Ass’t. Professor Andrew. Commercial Crises and Cycles of Trade.
Total 41: 2 Graduates, 24 Seniors, 6 Juniors, 6 Sophomores, 3 Others.
Source: Harvard University. Report of the President of Harvard College 1904-05, p. 75.
* * * * * * * * * * * * * * *
HARVARD UNIVERSITY
ECONOMICS 12b
Mid-Year Exam. 1905.
Omit one question.
- State briefly the geographical range of the various crises of the 19th
- Compare industrial and financial conditions in the United States in 1903 with those of 1873, 1883, and 1893.
- Explain Juglar’s theory as to the movements of bank loans and reserve, and state how far it is confirmed by American experience.
- What reasons are there for believing that a rise in the value of money will check the production of wealth? And what reasons for believing that it will not do so?
- How far in your opinion are trade conditions likely to be affected
- by the trust movement,
- by stock-exchange regulations like the German bourse law,
- by better facilities for storing staple products,
- by the maintenance of a large army and navy?
- How far in your opinion are trade reactions due to
- the waste or destruction of capital,
- the excessive creation of capital?
- “There are reasons, other than psychological, why an investor’s market must be more unstable than a consumer’s market.” What are they?
- Discuss three different methods of making our currency system more responsive to trade needs.
- What groups in a community are injured by a crisis? What groups are benefitted?
Source: Harvard University Archives. Examination Papers, Mid-Years. 1904-05. (HUC 70000.55). Box 7.
_______________________
1905-06
Course Enrollment
[Economics] 12b 1hf. Ass’t. Professor Andrew. Commercial Crises and Cycles of Trade.
Total 55: 9 Graduates, 20 Seniors, 20 Juniors, 5 Sophomores, 1 Other.
Source: Harvard University. Report of the President of Harvard College 1905-06, p. 72.
* * * * * * * * * * * * * * *
HARVARD UNIVERSITY
ECONOMICS 12b
Mid-Year Exam. 1906.
- Compare as regards recent cycles of trade,—
- the number and liabilities of failed firms.
- banking and commercial failures.
- railway and commercial failures.
- To what extent have changes in the clearings of the New York banks registered changes in general business?
- Explain Juglar’s theory as to the movements of bank loans and reserves, and state how far it is confirmed by American experience.
- Explain what was done by the Bank of England to relieve apprehension in 1825, 1847, 1857, 1866, 1890.
- Explain and discuss Rodbertus’ theory of crises.
- Upon what occasions within the past thirty-five years and by what means, have the American Secretaries of the Treasury helped to relieve a stringency in the financial centres?
- In what ways is business affected by the condition of the crops? Within what limitations? In the case of which crops is the connection closest?
- What part does “credit” play in the explanation of crises,—
- according to Laughlin,
- according to Chevalier,
- in your own opinion?
- In what ways and to what extent are trade conditions apt to be affected,—
- by the increasing gold supply,
- by the trust movement,
- by increasing armies and navies,
- by the present agricultural situation?
Source: Harvard University Archives. Examination Papers, Mid-Years. 1905-06. (HUC 70000.55). Box 7.
_______________________
1906-07
Course Enrollment
[Economics] 12b 1hf. Ass’t. Professor Andrew. Commercial Crises and Cycles of Trade.
Total 26: 4 Graduates, 11 Seniors, 9 Juniors, 2 Sophomores.
Source: Harvard University. Report of the President of Harvard College 1906-07, p. 71.
* * * * * * * * * * * * * * *
HARVARD UNIVERSITY
ECONOMICS 12
Mid-Year Exam. 1907.
- “The crisis is practically of nineteenth century origin, and it is an acute malady to which business appears to be increasingly subject.” How far does your study confirm this statement?
- Name any occasions in the nineteenth century when crises have occurred either in England or America without occurring in both countries. Explain the variation in conditions as between the two countries in each case.
- What seem to you the main causes of the American crisis of 1893? In what respects did the movement which culminated in that year differ from the movement before the panic of 1884?
- Show briefly in what respects conditions in America in 1857 and in the years just preceding resembled those of 1907 and the years through which we have just passed? Show also the contrasting conditions.
- To what causes were crises attributed by (a) De Laveleye, (b) Rodbertus, (c) Jevons? Explain and criticize their theories.
- What contributions to the explanation of crises have you found in reading (a) Walker, (b) Selden, (c) Carver?
- What reasons are there for believing that an appreciating standard of value will hamper industry? And what reasons for believing that it will not do so?
- Under what circumstances and by what means have the following Secretaries of the Treasury helped to relieve disturbances in the New York money market? (a) Richardson, (b) Fairchild, (c) Gage, (d) Shaw.
Source: Harvard University Archives. Examination Papers, Mid-Years. 1906-07. (HUC 70000.55). Box 7.
_______________________
1907-08
Course Enrollment
[Economics] 12b 1hf. Ass’t. Professor Andrew. Commercial Crises and Cycles of Trade.
Total 62: 1 Graduate, 17 Seniors, 29 Juniors, 13 Sophomores, 2 Others.
Source: Harvard University. Report of the President of Harvard College 1907-08, p. 67.
* * * * * * * * * * * * * * *
HARVARD UNIVERSITY
ECONOMICS 12
Mid-Year Exam. 1908.
- When did stock speculation begin in England? Name the principal crises in England of the 18th century.
- To what extent have banks in this country suspended payment in successive panics since 1800? To what extent in England? To what extent in France?
- Describe the methods of relief pursued by Secretary Cobb in the panic of 1857? By Secretary Boutwell in the panic of 1873? By Secretary Shaw in the stringencies of 1902, 1903, and 1906? By Secretary Cortelyou in the panic of 1907?
- In your opinion does the emergence of loans above deposits in the New York banks necessarily betoken a condition of danger? Has it always done so in the past? Why, or why not?
- In what ways do crop conditions affect business in the United States? Are any recent changes in their influence to be noted?
- Enumerate briefly as many points of resemblance and of contrast as possible between the panics of 1893 and 1907 and their antecedent conditions.
- “The farther removed the producer’s goods are from some consumable product and the more remotely their value is derived from that of some consumable product, the more violent the fluctuations in value tend to be?”
Explain and criticize this statement in its relation to the theory of crises. - Suppose everybody resolved to consume productively only, what would be the result?
- What explanations of crises were offered by J. S. Mill? By de Laveleye? By F. A. Walker?
Source: Harvard University Archives. Examination Papers, Mid-Years. 1907-08. (HUC 70000.55). Box 8. Copy also available at Harvard University, Examination Papers, 1873-1915. Box 8, Bound vol. Examination Papers 1908-09 (HUC 7000.25), p. 36.
Image Source: A. Piatt Andrew at Red Roof, his home in Gloucester, Massachusetts, 1910. Hoover Institution Archives. Papers of A. Piatt Andrew.(Box 47, folder 9).