Richard Abel-Musgrave received his Ph.D. in economics from Harvard in 1937. The following year he co-taught the undergraduate public finance course with Harold Burbank. The course reading list for the first term was incomplete in the Harvard University archives, but since the material corresponded very closely to that found in the 1937-38 folder, I have inserted the material as noted below.
___________________________
Course Enrollment
[Economics] 51. Professor Burbank and Dr. Abel-Musgrave.—Public Finance.
Total 58: 36 Seniors, 16 Juniors, 4 Sophomores, 2 Others.
Source: Harvard University. Report of the President of Harvard College 1938-39, p. 98.
___________________________
Assignments for Economics 51
First Half-Year 38/39
Attention is directed particularly to the following books:
| *Lutz, H.L. | Public Finance (3d ed.) |
| Bastable, C.F. | Public Finance (3d ed.) |
| Bullock, C.J. | Selected Readings in Public Finance (3d. ed.) |
| Dalton, H. | Principles of Public Finance (9th ed.) |
| Dewey, D.R. | Financial History of the United States (11th ed.) |
| Fagan [E.D.] and Macy [C.W.] | Public Finance |
| Hibbard, B.H. | A History of the Public Land Policies |
| Lutz, H.L. | The State Tax Commission |
| Mills [M.C.] and Star [G.W.] | Readings in Public Finance and Taxation |
| Seligman, E.R.A. | Essays in Taxation (10th ed.) |
| Seligman, E.R.A. | The Income Tax |
| Seligman, E.R.A. | Studies in Public Finance |
| Stamp, Sir Josiah | Fundamental Principles of Taxation (2nd ed.) |
| Great Britain | Report of the Committee on National Debt and Taxation (The Colwyn Report, 1927) |
| Great Britain | Report of the Committee on National Expenditure (The May Report, 1931) |
| National Tax Association | Proceedings |
| National Tax Association | Bulletin |
| Annual Report of the Secretary of the Treasury | |
Sept. 28 – Oct. 7; Pre-depression expenditures.
| REQUIRED: | |
| Introduction | Lutz, Ch. 1,2,3. |
| The increase of expenditure | Lutz, Ch. 4,5. |
| War Finance | Mills & Starr, Ch. 22, Sels. 52, 53. |
| Lutz, pp. 764-774 |
SUGGESTED:
Bastable, Public Finance, Bk. I, ch. 1-8.
Bullock, Readings, Ch. 2, 3.
Fagan & Macy, Public Finance, Ch. 1-4.
Haig, Public Finances of Post War France, Ch. 20.
Mallet, British Budgets, 1887-1913, 1913-1921, 1921-1933.
National Industrial Conference Board, Federal Finances, 1923-32.
National Industrial Conference Board, Cost of Government in the United States, 1925-26, 1926-27, 1929-30.
Report on Recent Social Trends, Vol. II, Ch. 25-26.
Smith, Deficits and Depressions, Ch. III.
Willoughby, W.F., Financial Condition and Operations of the National Government, 1921-30.
October 10 – 28; Depression expenditures and Finance.
| REQUIRED: | |
| Public Works | Clark, The Economics of Public Works, Ch. 4-8, 11, 16. Fagan & Macy, Ch. 3, Section 2. |
| The Debt | Lutz, Chs. 29,31,33. Bullock, Ch. 22,23. |
| Social Security Finance | Anonymous (Wilcox), The Old Age Reserve Account, Q.J.E., May 37. 1937 Proceedings, National Tax Association, pp. 57-81. |
SUGGESTED:
Current Economic Policies, Slichter on Public Works.
Dalton, Unbalanced Budgets: A study of the financial crisis in fifteen countries.
Gayer, Public Works in Prosperity and Depression.
Great Britain, Report of the Committee on National Expenditures, 31.
Hansen, A., Full Recovery or Stagnation, Part IV.
Hubbard, J., The Banks, the Budget, and Business.
Mallet, British Budgets, 21-33.
National Resources Committee, Public Works Planning.
Smith, Deficits and Depressions, Ch. 4-7.
Bastable, Public Finance, Bk. V.
Burgess, W.R., Reserve Banks and the Money Market, Ch. 6.
Fagan & Macy, Public Finance, Ch. 22-27.
Beckhart, B., New York Money Market, Vol. IV, Part II.
Hargreaves, The National Debt.
Hendricks, The Federal Debt, 1919-30.
Love, R.A., Federal Financing, esp. Ch. 8-14.
Pigou, Public Finance, Part III.
Matsushita, Economic Effects of Public Debts.
Seligman, Essays in Taxation, Ch. 23-24.
Studensky, P., Public Borrowing.
Burns, E.M., Social Security.
Douglas, Social Security in the United States.
Pribram, Reserves in Old Age Benefit Plans, Q.J.E., August 38.
Social Security Board, Social Security in America.
October 31 – Nov. 4; Proper limits to public spending.
| REQUIRED: | |
| Classical views | Bullock, ch. 2. |
| Effects of Public Spending | Dalton, ch. 2,3,18-20. Lutz, ch. 8. |
SUGGESTED:
De Marco, First Principles of Public Finance, ch.1.
Pigou, Public Finance, Part I.
Pigou, Economics of Welfare, Part IV, ch. 7-12.
Sidgwick, H., The Principles of Political Economy, 301, col., Book III.
[Pages missing, following three topics taken from the 1937-38 syllabus]
The Possibilities of Expenditure Control.
| Required: | Lutz, Ch. 6 Mills & Starr, Ch. 4, Section 8 Hillhouse & Welsh, Tax Limits Appraised. Lutz, Ch. 35, 36. Reorganization of the Executive Departments. |
| Suggested: | Buck, A.E., The Budget in Governments of Today. Buck, A.E., Public Budgeting. Mallet, British Budgets, 1887-1913. Mallet & George, British Budgets, 1913-1921, 1921-1932. |
Revenues other than Taxes
| Required: | Lutz, Ch. 9, 19 Lutz, Ch. 11,12,13. Mills & Starr, Ch. 7. Mason, Power Aspects of the T.V.A., Q.J.E., Vol. 50, pp. 377-414. Railroads and Government Annals, pp. 106-125, 133-141, 146-150. |
| Suggested: | Bastable, Public Finance, Bk. II, Ch. 1-5. Fagan & Macy, Public Finance, Ch. 5-7. Knoop, D., Principles and Methods of Public Trading. Public Administration Service, A Housing Program for the United States. Current Developments in Housing, Annals, March 1937, pp. 83-95, 151-161. Report of the United States Post Office. Robson, W.A., Public Enterprise. Seligman, Essays in Taxation, Ch. 14-15. Splawn, Government Ownership and Operation of Railroads. Tennessee Valley Authority, 1933-1937. |
The Public Domain and Public Borrowing.
| Required: | Lutz, Ch. 10 Lutz, Part 4. Bullock, Ch. 22, 23. |
| Suggested: | Hibbard, Public Land Policies of the United States. National Resources Board, Report of, Part II. Nowell & Jessness, Land Use in Northern Minnesota. Bastable, Public Finance, Bk. V. Brown, H.G., Economics of Taxation, Ch. 1-2. Burgess, W.R., Reserve Banks and the Money Market, Ch. 6. Fagan & Macy, Public Finance, Ch. 22-27. Hargreaves, The National Debt. Hendricks, The Federal Debt, 1919-30. Love, R.A., Federal Financing, esp. Ch. 8-14. Pigou, Public Finance, Part III. Seligman, Essays in Taxation, Ch. 23-24. Studensky, P., Public Borrowing. Beckhart, B., New York Money Market, Vol. IV, Part II. |
___________________________
Economics 51
Assignments for the Second Half-Year
1938-39
(For general references see outline for first term.)
February 6 – 17. The Nature of Taxation and Criteria for a Sound Tax System.
| Required: | Introduction | Lutz, Ch. 15, 16, 17. |
| Justice in Taxation | Bullock, Ch. 8, 9. Carver, Essays in Social Justice, Ch. 17. |
|
| Suggested: | Bastable, Public Finance, Bk. III, Ch. 3,5. Dalton, Public Finance, Ch. 4-9 (9th ed.) Seligman, Progressive Taxation in Theory and Practice. Stamp, Fundamental Principles of Taxation. (3d.ed). |
|
February 20 – 27. Incidence and Effects of Taxation.
| Required: | Shifting of taxes | Fagan and Macy, Ch. 9, sec. 2. Lutz, pp. 378-386. |
| Shifting and effects | Colwyn Report (Majority), Part I, Sec. 4. Dalton, Public Finance, Ch. 10, 11, 12. |
|
| Suggested: | Brown, H.G. Economics of Taxation. Silverman, Taxation, Its Incidence and Effects. Taussig, Some Aspects of the Tariff Question, (3rd ed.), Ch. 1. Buehler, “Public Expenditures and Taxes”, in American Economic Review, Dec. 1938. |
|
March 1 – 6. Property Taxation and its Reform
| Required: | Lutz, Ch. 22, 23 Fagan and Macy, Ch. 12, 14. Silverhertz, Assessment of Real Property in the U.S. |
| Suggested: | Blakey, Taxation in Minnesota, Ch. 5, 6. Bullock, Readings, Selections 45, 46. Fagan & Macy, Public Finance, Ch. 10, 11, 13. Henry George, Progress and Poverty. Fairchild, Forest Taxation in the U.S. Jensen, Property Taxation in the United States. |
March 8 – 24. Income Taxation: Personal and Business
| Required: | Federal Income Tax | Personal: Lutz, Ch. 20,21. Corporate: Lutz, pp. 602-615. Capital Gains: Fagan & Macy, Ch. 16, Pt. I. |
| State and Local | Lutz, pp. 615-621. Model Plan of State and Local Taxation. Mills and Starr, Sel.42. |
|
| Suggested: | Blakey, The State Income Tax. Fagan & Macy, Ch. 15,16,17. National Industrial Conference Board, State Income Taxes. Seligman, The Income Tax. |
|
March 27 – 31. Other Business Taxation
| Required: | Capital Stock and Excess Profits-Tax | Lutz, pp. 587-602, 621-623. |
| Undistributed Profits Tax | How Shall Business Be Taxed, Ch. 8,9,10. | |
| Taxation of Banks | Lutz, pp. 623-31. | |
| Taxation of Public Utilities | Mills & Starr, Sel. 43. | |
| Summary | How Shall Business Be Taxed, Ch. 4. | |
| Suggested: | Buehler, Undistributed Profits Tax. Fagan & Macy, Public Finance, Ch. 19. Haig, The Taxation of Excess Profits in Great Britain. National Industrial Conference Board, State and Local Taxation of Business Corporations. |
|
April 3 – 10. Vacation.
April 10 – 14. Death Duties
| Required: | Lutz, Ch. 27 Fagan and Macy, Ch. 18. Rigano, Social Significance of the Inheritance Tax |
| Suggested: | Schultz, The Inheritance Tax. |
April 17 – 19. Commodity Taxation.
| Required: | Lutz, Ch. 24,26 Fagan and Macy, Ch. 20, Sect. 1,2. |
| Suggested: | Buehler, General Sales Taxation. Jacoby, N.H., Retail Sales Taxation. National Industrial Conference Board, General Sales or Turnover Taxation. Ibid., Sales Taxes, General, Selective, or Retail. |
April 21 – May 6. Current Problems.
| Required: | Coordination of Tax System | Lutz, Ch. 7. Haig, “Co-ordination of Federal and State Tax Systems”, Proceedings of National Tax Association, 1932. Bitterman, Grants In Aid, Ch. 20[?]. |
| Taxation and the Cycle | Hicks, Finance of British Government, Ch. 18. | |
| Budget, Debt and Tax Sources | President’s Budget Message, Jan. 5, 193[?]. |
Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003, Box 2. Folders “Economics, 1938-39” and “Econommics, 1937-38”.
___________________________
1938-39
HARVARD UNIVERSITY
ECONOMICS 51
[Mid-Year Examination]
Choose ONE question for an hour essay, and FOUR questions for half-hour answers. Wherever (a) and (b) are indicated take ONE PART ONLY; both cannot be taken.
- (a) What do you consider the most important factors underlying the post war expansion in Federal spending in the United States?
(b) “The increase in spending the world over shows that the rise in the spending of the United States government is not to be explained in terms of party politics or New Deal theories. The underlying causes are more basic and general.” Discuss. - (a) “Deficit spending in the depression is inevitable to finance necessary relief expenditures. But it is also desirable since it results in a rise in employment which in turn reduces the need for relief. There is no reason to expect a continuous deficit policy.” Discuss.
(b) “The fear of a growing public debt is an unfortunate superstition. A ‘bigger and better’ public debt is, in fact, the only salvation for capitalism.” Discuss. - Do you think that extravagance in public spending may be reduced by (1) centralization of fiscal control, and/or (2) governmental reorganization of existing spending units? Which measure do you favor?
- (a) “A determination of the relative efficiency of public and private enterprise meets with insurmountable obstacles. The ‘yard-stick’ criterion is a dangerous illusion.” Discuss.
(b) “Government enterprises are perfect monopolies. The experience with private monopoly should make us realize what to expect from public ownership.” Discuss. - Would you amend the Old Age Annuity Provision of the Social Security Act of 1935? If so, why and how?
- (a) Do you consider the German and English experience with the coordination of State and Local finances applicable to the United States? What lessons in particular may be learned?
(b) Do you consider the allocation of ‘Block Grants’ under the British Local Government Act of 1929 a satisfactory solution of the grant problem? Could it be applied to Federal grants in the United States? With what possible amendments? - “If it is realized that political democracy depends upon parliamentary control over public finances, it must similarly be realized that the Budget System is the key factor in the execution of such control. The United States Budget System is fully satisfactory from this point of view.” Do you agree?
Source: Harvard University Archives. Harvard University Mid-Year Examinations, 1852-1943. Box 13. Bound Volume: Mid-Year Examinations, 1939. Papers Printed for Mid-Year Examinations [in] History, History of Religions, …, Economics, …, Military Science, Naval Science. January-February, 1939.
___________________________
1938-39
HARVARD UNIVERSITY
ECONOMICS 51
[Year-end Examination]
I
Write an hour essay on one question, and half-hour answers on three questions. Indicate essay question.
- “‘Justice in taxation’ is indeed a dangerous concept. It lacks precision, is readily abused and beclouds the real issue of the tax problem.” Discuss with detailed and accurate illustrations.
- “From the interdependence of prices it follows that the burden of a tax, no matter where the point of impact may be, will spread throughout the economic system and finally will come to rest upon the consumers at large.” Discuss.
- Take either (a) or (b). Both cannot be taken.
- “The taxation of business has been the most criticized part of the federal tax system; and for this there is good reason.” Discuss.
- To what extent would you attribute the failure or success of the New Deal to its tax policy? Present your point of view with reference to specific
- “The rivalry between Federal State and Local governments for tax sources is unfortunate. To obtain a well balanced tax system, a sharp division of revenue sources between the different levels of government is necessary.” Discuss.
- Give a critical account of the ‘Model Plan of State and Local Taxation.’
II
Write for one half-hour on one of the following:
- “The experience of the world war has shown that tax-finance of wars is neither possible nor desirable.” Discuss.
- Discuss the main factors to be considered in determining the ‘taxable capacity’ of a country. Illustrate with reference to the United States.
- Discuss some of the major characteristics of post-war British tax policy. In what respects does it set an example for future American policy?
Source: Harvard University Archives. Harvard University Final Examinations, 1853-2001. Box 4, Papers Printed for Final Examinations [in] History, History of Religions, …, Economics, …, Military Science, Naval Science. June, 1939.
Images Sources: Richard A. Musgrave (right). University of Michigan Faculty History Project.