IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I MS ta lU |22 £ US. 12.0 L25 |t_U 11.6 6" ^j"' <> J? V Photographic Sdenoes Corporalion 23 WiST MAIN STMET WItSTIR.N.Y. USM (716)«72-4S03 Ik % CiHM/ICMH Microfiche Series. CIHM/ICIVIH Collection de microfiches. Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques Technical ahd Bibliographic Notes/Notes techniques et bibliographiques The Institute has attempted to obtain the best original copy available for filming, f-'eatures of this copy which may be bibliographicallv unique, which may alter any of the images in the reproduction, or which may significantly change the usual method of filming, are checked below. Coloured covers/ Couverture de couleur □ Covers damaged/ Couverture endommagde □ Covers restored and/or laminated/ Couverture restaurie et/ou peiliculde D D D D Cover title missing/ Le titre de couverture manque I I Coloured maps/ Cartes giographiques en couleur □ Coloured ink ai.!rie "A SUIVRE ", le symbols V signifie "FIN". Les cartes, piancfes, tableaux, etc., peuvent Atre filmte A des taux de reduction diff^rents. Lorsque le documsnt est trop grand pour Atre reproduit en ui ^aul clich6, 11 est film* d partir de Tangle sup^rfc. - jauche, de gauche A droite, et de haut en bas, • prenuiit le nombre d'images n6cessaire. Les diagrammee suivants illustrent la m^thode. 1 2 3 6 /0t^^t^£4^H^^^uJj(?f^ f(((, ,{^ '^ruW^ The Relation of Economic Study TO Public and Private Charity. Inaugural Lecture, BY JAMES MAYOR, Professor of Political Economy and Constitutional History, University of Toronto. ■ -^^ H^*^i l1 >,',;^«^ '/'I 1 r. 1 1 • i i ♦ . .. ; .'i THE RELATION OF ECONOMIC STUDY TO PUBLIC AND PRIVATE CHARITY. THE REIyATION OK ECONOMIC STUDY TO PUBI^IC AND PRIVATE CHARITY.* The purpose of this paper is the discussion of certain as- pects of the study of economics, especially this question : — Of what avail is the study of economics in the practical work of dealing with the problems of poverty ? In putting the question thus, I am, perhaps, making too great a con- cession to those who demand from study of any sort im- mediate results in hard cash or some equally obvious medium of exchange. Such persons must always remain strangers to the pleasur^is of the pursuit of truth for its own sake rather than for the sake of the profit that it brings, and strangers also to the real enjoyment derivable from the getting of knowledge ostentatiously useless. Among the numerous inconsistencies in which we are apt to detect each other, there is the inconsistency of feeling more interested and excited about things remote than about things near ; and at the same time demanding in connection with things near, that every thought about them shall pay in some definite form. We expend our compassion and our money in sending missionaries to the heathen of other coun- tries, or in alleviating the miseries of Russian Jews, or Christians of the I^ebanon, while we manifest some impa- tience at the demands upon our time and our purses for the service of our next-door neighbors. The closer things are to our vital interests, the less they interest us. We see too much of them, and have them thrust in our eyes until we are weary of them. Things that are familiar bore us to death, even though we may run the risk of their doing us to death in some other way. The commonplace does not excite • Inaugural i:«ecture deUvered before the University of Toronto. February 6th, 1893. (34) Relation op Economic Study to Charity. 35 us, because it is commonplace. What excites us is the novel, the uncommon, th-, unfamiliar. Now, here, perhaps, is the reason for the prevalence of the notion that political economy is "the dismal science." Because it deals with the common place, because it has to do with the familiar, it is dismal, and for no other reason.* It is true that economics opens a new window through which we may, if we will, look out upon life ; but the window is glar.ed with no garish colors, there is no inviting label to make us aware of the treasures that lie within.— There is indeed a label which is tradition- ally repellent — hence the popular view which, like most pop- ular views, is partly justified and partly erroneous, that eco- nomics is a dull affair, that it is a study by dull people, of dull people, for dull people. In so far as economics is regarded as dismal because of its relation to every-day life, there is no help for it; in so far as it is dismal because it throws little or no light upon practical problems, there is no excuse for it. I^et us see how far and in what way the study of economics can throw light upon practical affairs. But first— What is the relation between practical affairs and science of any kind ? Is it not this ? The region of practical affairs is the region of action— it is the region of art in the widest sense. The region of science is the region of thought, of action too, no doubt, in the sense of experiment and observation, but still essentially the region of thought, of logical continuity, of guarded progress from one proof to another, of careful employment of theories and hypotheses. In science we think and talk about its principles and classifications. In art we have no occasion to talk— we have to do it. Art like charity, is to be done, not to be talked about. It were childish to discuss the oppo- sition of science and art, —the opposition of theory which is in the region of science to practice, which is in the region of art. They are not opposed, one is the complement or the fruition of the other. Two theories may be opposed as twa • Cf. Helps " Social Pressure." p. 255. AnnaivS of thb American Academy. methods of practice may di£fer, but there is no such oppo- sition, in reality as that which underlies the phrase " It is all very well in theory but it does not work out in practice." Where this phrase is employed : v will be found that there is something loose in the theory, some error in the method of working in the practice, or a total want of harmony between the conditions presupposed in the theory and those which actually accompany the practice. In any case it is a loose and inaccurate phrase suggesting an opposition which has no counterpart in reality. Science and art, theory and practice are then not opposed, though they are diflferent. One is con- cerned with executive power — with action, with the etnotions, with the muscles, and the other with thought, with orderly arrangement, with opinion, with criticism. Now, though political economy is held by some to be an art as well as a science, and perhaps rightly so held, we must not confound the methods of the science of political economy with those of the art of political economy. The science of political economy is the province of the economist, the art of political economy is the province of the statesman, or the practical administrator in civic, national or inter- national economic affairs. The functions of the two classes of persons vary widely ; the two classes may be of mutual aid, they may be of mutual hindrance. The two functions require different orders of mind, different aptitudes and different studies. An excellent economist may make an indifferent states- man, not because "what is all very well in theory will not work out in practice," nor because the study of economics is of no use to a practical statesman; but, because the qual- ities which have enabled the economist readily to grasp scientific principles are not those which as a statesman he is called upon to exercise. Power to grasp scientific principles is a valuable quality in any man ; but the statesman must have other qualities beside, he must have the capacity and the habit of control, he must have the magnetic power to bind Relation of Economic Study to Charity. 37 men together and to lead them his way. He must be a man of action. It were as unreasonable to demand of the economist administrative ability as to demand of the statesman intimate knowledge and grasp of scientific prin- ciples. Yet it is of the greatest importance for the economist to know, and to know exhaustively, the methods of practice, however little he may share in them, as it is for the states- man to know, and to know exhaustively, current theories of political action, however little he may be able or desirous to take a share in thinking them out. The statesman, politician, town councilor or other rep- resentative of the people who takes part in public economics and who, nevertheless, passes the study of economics by on the other side does so, not because there is any opposition between sound theory and sound practice, but rather because being a man of action he has no aptitude for abstract think- ing, and no wish to trouble about it. The average man does indeed confine himself to one or other sphere of activity — to practical government or to the study of systems of governments. It will perhaps now be evident that objections to the econ- omist because he is not practical are as valid as, and no more valid than, objections to the politician because he does not oflFer unbiased statements of theories of government instead of party speeches. AH this may seem rather elementary, yet, perhaps, at no time has there been more need to emphasize this distinction between science and art than there is now. If we are to build up a science of economics we must do so with our eye on, but with our minds and voices away from, the market place or the hustings. We must have as little emotional interest in this or that theory, or this or that policy, as we should have in the examination of the evolutions of an oyster feeding under a microscope or in the discussion of the succession of the rocks in our neighborhood. Annaw op the American Academy. One has often tried to get some account of a battle or of a Ciimpaign from a private soldier, but always without success. He knows only marchings and counter-marchings, knows that one night he lay behind a hill and that the next moru' ing his regiment charged over a plain. This is all. Any student of history knows more of battles than the soldiers who were there, who are not students o history. Thus, in the turmoil of party politics, in the midst of the struggles of Conservative and Liberal, Republican and Demo- crat, N. P. and "grit," we here at least may be tranquil, but observant. The onlookers see most of the game. This then is the r61e of economic science in the study of practical problems, it is to give a man that sane and all- round view which our dual system of party government tends to prevent him from having ; it is to show a man that the result of his action is at the best uncertain, but that in proportion as step by step he reasons rightly and com- prehensively, he is the more likely to bring his action to good issues. The study of economics makes a man modest, would make even a politician modest. For it brings him into the presence of the vast social and material forces with which in any action on the large scale he has to reckon. It makes him realize how complex are the issues of life, how numerous the cross-currents, how many forces may conspire to defeat his best aims. And now, in this attitude of theoretically the most perfect independence, the most absolute indiflference to the imme- diate or remote results, the uttermost absence of what the world calls "sentiment," let us regard the problems of poverty. The first question we must ask about poverty is — What is the meaning of the word ? The dictionary does not help us much, though it gives us a number of synonyms. While every one has a general idea of what is meant by the expres- sion, we should find considerable difference in ideas as to what constitutes poverty. If our scientific method is to Relation op Economic Study to Charity. 39 avail us at all, it must first oflFer us the means of obtaining a more definite idea of the range and meaning of poverty than is offered to us in the language of every-day life. It must provide us with some gauge for determining the degree of poverty and with some method by which we may discover where poverty comes in in the general scheme of things and what brings it there. Like all early inquiries, the early inquiries into poverty regarded it as an isolated fact which might be considered apart from the other facts of life, and described it as a disease due to one or two specific causes, and capable of being dealt with by one or two specific remedies. But just as the study of physiology, — che study of the normal action of the functions of the organism preceded pathology, —the study of the morbid action of the organs, so the scientific study of diseases of the social organ- ism — social pathology we may call it — was necessarily pre- ceded by study of the normal action of the economic functions. It was necessary for us to have the study of the wealth of nations before we could have the study of the poverty of nations. Technically the study of wealth is in the departments of production and distribution — the study of poverty is in the department of consumption.* Poverty is unsatisfied need. The need is there, the resources to satisfy it are not there. Poverty is thus the condition of those who live at a low level, whose food, clothing and shelter are relatively inade- quate — relatively inadequate — for if they were absolutely inadequate, those who found themselves in that condition would perish — inadequate relatively to the resources and consumption of those who are living at a higher level. Poverty is simply the shady side of life, and we cannot understand that unless we understand what life is and how it is now being lived by the people. We must, therefore, * While ina>lequate production or a defective system of distribution may pro* duce poverty, neither will determine the depth and range of it. 40 Annai^ of the American Academy. look upon the study of poverty as bein^ part of a large whole. This is the central idea of the modern study of poverty. It is a part of the study of the economic life of the people as a whole. The methods that are now being employed in the study of poverty are simply the methods by which other sciences than economics have succeeded in enlarging the domain of knowledge, viz.^ observation, induction and deduction. The same order of skill with which beasts, birds, fishes and insects have been classified and arranged is at last being brought to bear upon mankind. It is beginning to be possible to understand ourselves. This orderly scientific method is rather the outcome of the general movement than the offspring of a single investiga- tor. It has, indeed, not sprung into existence in a moment ; but is rather a development, many workers having been devoting themselves to a close and systematic study of economic life, some of them even without being aware of the importance of the work they were doing. I desire to suggest the need of adequate coordination of the results of such inquiries, rather than to make a pre- mature attempt at coordination. It seems essential that the order of facts whose interpretation is desired should be widely understood. This order of facts may perhaps be most effectually gathered from an account of two diflferent but parallel investigations. One of the leaders in the new method of the study of society was Frederic lyC Play, who, in 1829, began the series of family monographs which has been carried on by his disciples over the period of sixty-four years that has elapsed since then. It is not my purpose to give an ex- haustive account of the method of I^e Play. I shall en- deavor merely to indicate so much of it as may sufl&ce to show its place in the study of the problem of poverty. The chief feature in the method of I^e Play is the compre- hensiveness and minuteness of its view of social life. It Relation of Economic Study to Charity. 41 takes as its starting point the idea that the unit of society is the family, and that the plexus of social forces can only be inductively studied by means of microscopic observation of a great number of these units. The family, then, must be examined in detail with scrupulous care, and its en- vironment, heredity and characteristics exhaustively cata- logued. Thus, the three chief heads under which the investigation must be carried on are these : 1 . The external condition of the family. 2. The status of the family, with its record of heredity. 3. The means and mode of existence of the family It is the business of the observer to note : I. THE EXTERNAL CONDITION OF THE FAMILY. The Place of Habitation, —The features of the district ; the municipal government ; the provision of open spaces ; means of transit ; the physical characters of the district ; climate and natural resources. The Chief Industries.— "th^ mode in which these are or- ganized—domestic or capitalistic ; exportation and importa- tion from the district ; mode of land ownership ; division of property ; state of commercial property ; number of popula- tion, and trades of these. 2. CIVIL STATE OF THE FAMILY. Constittition of the Family —l^a.mes and places. of birth and death of members of the family. Pension and Moral A^a*//^.— Religious belief of the family and of the population in general ; influence of the clergy ; details of religious practices ; private observances ; domestic worship ; public worship ; sacred images ; ceremonies at marriage, birth and death. Domestic r?y/«/?J.— Attachment between homes; influ- ence accorded to the wife in domestic affairs ; deference accorded to aged parents— measures taken to secure for them 4* Annai^ of the American Academy. a happy old age ; remembrance of dead parents ; affection to offspring — measures taken for their development, moral and intellectual ; treatment of domestics and animals. Social Virtues. — Charity ; devotion ; disposition to hospi- tality ; spirit of conciliation in dispute ; politeness and harmony in social relations ; guild relations, friendly societies, corporations, trade unions; deference and attachment of family to employer ; relations with devotees of other religions ; toleration. Moral Habits Relative to Mode of Existence. — Inclination to own property in house, furniture and in clothes ; tendency to simplicity ; temperance in food and drink ; inclination to save ; terms of investment of saved capital ; mode of trans- mission of property to the period of old age and of death ; tendency to remain in place of habitation or to emigrate temporarily or permanently. Principal Traits Characterizing Intellectual Development. — Knowledge communicated by primary instruction and by religious instruction ; special facts relative to the education of children ;• the relation of the exercise of their trade to intellectual development ; use of museums in this connec- tion ; attachment to tradition, or tendency to innovations in methods of labor ; relation of workmen to masters ; the attitude of the family to civil and political institutions. Hygiene.— '^\\& habitual state of health of the family; practices of ablution ; cleanliness or otherwise of clothes and houses. Medical Sen 'ce. — Aptitude or ignorance of head of family or of the wife o administer medical relief or to act as nurse ; superstitious or archaic practices or theories regarding care of health ; care of health of children bj" parents ; infant in- surance, bearing upon health and life of children. Rank of Family. — Relations of family with other families of employers or workmen in same locality ; conception of status of family by itself; relation to strangers; sociD-bility or otherwise of family. Rei«ation op Economic Study to Charity. 43 '^ 3. MBANS OF SXISTENCB OP THE FAMILY. Property Possessed by the Family. — Immovables, movables, money, investments, tools, arms, domestic animals. Subventions. — Charitable relief; payments by friendly societies or trade unions during sickness or want of employ- ment ; drugs ; use of hospital, school and church, so far as these are free. Labor. — I,abor executed by the workman and his family for an employer ; labor executed by the workman and his family for his own behoof. It will be seen at once that here is something larger than simply an economic investigation ; it is rather a sociological investigation of the most comprehensive character. It is, indeed, more than that, for it involves as well, topogfraphy, the study of the physical environment. While the details of the investigation are not such as might be undertaken by the economist in the strict rendering of the expression, every one of the points has its bearing upon the economic condi- tion. The economic condition is indeed the resultant of these various forces and the condition cannot be understood without an investigatioti into the way in which it has been produced. It may seem a hard saying, yet it is true, that what we know about the economic condition of the popula- tions of our large cities is mere vague surmise, depending upon the statements of a few persons in each city, untrained, as a rule, in rigid methods of induction, who form their conclusions from a field of observation, limited by their own casual experience. What we do need is detailed and con- tinuous investigations along the lines I have sketched, with competent co-ordination of the results. The method of I^e Play is no visionary scheme, but is now being applied to the study of populations in several widely separated areas. Le Play's own monographs deal with society in some of the European countries and in the East, and the accumulation of material for co-ordination is still being car* ried on by the Le Play societies. 44 Annaw op thk American Academy. By far the most important, in point of positive results of the applications of modem scientific methods of research to the study of society, and specially to the problems of pover- ty, is the work of Mr. Charles Booth upon London. Mr. Booth has carried on his investigation, independently of the Ifi Play method, and on diflFerent, though somewhat similar, but less systematic, lines. He has conceived the idea of making an exhaustive study of the population of London — from an economic point of view. With this object he has already by the aid of an army of assistants, thoroughly ex- plored a great part of London. He has made a careful investigation of a vast number of families and has gleaned not all, but a large number of the relevant facts about them. He has classified these facts and drawn certain provisional conclusions from them. His work is indeed, in most ways, a perfect model of what such an investigation should be. The conditions of each great city are so different from those of every other that not until we have before us similar in- vestigations of other cities shall we be entitled to form definite conclusions about the poverty in them. Early in Mr. Booth's investigations he found it necessary to devise a classification which might serve as a standard for the measurement of different degrees of poverty. The standard is as follows : — A. The lowest class of occasional laborers, loafers and semi-criminals. B. Casual earnings — very poor. C. Intermittent earnings, ) ^ , , „ ,. , D. Small, irregular earnings, J^og^ther. the -poor." E. Regular standard earnings — above the line of poverty. P. Higher class labor. G. Lower middle class. H. Upper middle class. These divisions are of necessity arbitrary. In different places, or at different periods in the same place, they would be denoted by different pecuniary amounts. Each division 1 rl^ Relation of Economic Study to Charity. 45 is, however, sufl&ciently permanent in its central idea for prac- tical purposes. In I^ondon, in 1886-89, when these inves- tigations were made, the ' ' poor, ' ' Classes C and D comprised those who have an income of from $4.75 to $5. 10 (iSsto 21s) per week for a moderate family ; Class B comprises those who fall below this amount. * The * * poor ' ' may be described as living in a state of struggle to obtain the necessaries of life; while the very poor "live in a state of chronic want." Here, then, we have a gauge by which to measure the standard of comfort of the people. The gauge is readily adjustable to any locality. What we need to do is by a general inquiry to fix the amount of the money wages ap- plicable to each class with the relative numbers in family and then proceed to discover by minute inquiry what the standard of comfort is in each family over the different quarters of a city. This inquiry involves a vast amount of time and trouble, and must be repeated at moderate intervals ; but without such an inquiry our knowledge of the people, of their standard of comtbrt, of what constitutes poverty, and the extent of it is quite vague and indefinite. The results of Mr. Booth's investigations into the economic condition of a certain portion of the people of I^ndon re- veal many interesting points. In the district chosen by him for investigation in the first instance, East lyondon and Hackney, comprising an area of about seven square miles in the east of I^ondon, bounded on the south by the river Thames, on the west by the city and on the east by the P'^ :;1ar marshes, there are about 900,000 inhabitan\*'s. Of these 64.8 per cent were above the line of poverty and 35.2 per cent were below it. Of this 35.2 per cent, or 315,000 persons below the line of poverty, only 6000 were inmates of instita- tions, so tliat over 300,000 persons were living in poverty in this area — one-third of the population. But of these 300,000 persons living In poverty, 128,000, or nearly one-half, were earning regular low wages; 74,000. • C. Booth. "Life and Ive. Rei,ation op Economic Study to Charity. 59 It fills the function of a sanatorium where a man, who has been broken in health on account of want of employment or otherwise, may recover in the fresh air, in the wholesome and regfular diet and discipline of the country colony, the spring which he has lost in the city. (2) It fills the function of organizers of labor for those who cannot organize their own. It seems likely that these two functions will have to be divided, the first to be undert?.ken by the exist- ing colonies, the second by other colonies to be established for permanent occupation by colonists cultivating upon a co- operative or peasant proprietary basis. In any case the colonies must dt good in so far as they take off from the slums of the cities, year by year, crowds of men who are rapidly sinking into degradation, and in so far as they make men of them. They will also avoid injurious influences upon the economic conditions of society, in so far as they are rigidly self-contained, that is, in so far as they avoid sending their subsidized products into the market for sale. For the rest, farm colonies, though conceivably an efficient, have proved to be a rather expensive form of poor relief. Now, where economic students may most efficiently be of service in practical problems is in thoroughly and system- atically mastering the conditions. Be it ours to study, and so far as we may, interpret the facts as we see them. We hear occasionally the phrase, ' * You are disobeying the laws of political economy." If by the laws of political economy are meant the laws of the action of the social forces, these laws are no more to be disobeyed than the law of gravi- tation, or the law of expansion of gases. What ought to be said is, " You are disregarding the lessons of history." It is mainly from disregarding the plain lessons of history, frequently firom ignorance of these, that men go wrong in political action. Wb^t we need in the study of economics to avail us in practical affairs is— insight, insight, and always insight. To get at the inwardness of a matter of ancient history, 6|> ANNAI3 OF THE AMERICAN ACADEM/. When aU the elements of it that have come down to us through the ages, have faUen into line and when we may ^ them in perspective, is fairly hard even for the most com- tjetent student ; it is difficult for us, for example, to trace the ^"s^gesof landholding in England or to discover the real meaning of the steps by which the English laborer emerged from serfdom ; but it is still more difficult for us to see the real bearing of what goes on under our very eyes, to see with entirely dear and disinterested vision the dir«:tion of the forces that are weaving in the " roaring loom of time. James Mayor. Vniversity (if Toronto. . ., f I f ... Jit ^^ t^S. .. .v^-^^^^,?^': JL^T^^ ^^^.