GIFT OF MICHAEL REE&E MANUAL OF REFERENCES AND EXERCISES IN ECONOMICS MANUAL OF REFERENCES AND EXERCISES IN ECONOMICS FOR USE WITH VOLUME II. MODERN ECONOMIC PROBLEMS BY FRANK A. FETTER, PH.D., LL.D. > PROFESSOR OF ECONOMICS, PRINCETON UNIVERSITY NEW YORK THE CENTURY CO. 1917 FOREWORD This Manual follows the lines of the "Manual of References and Exercises," published in the autumn of 1916, to accompany the volume on Economic Principles. The literature of the field treated in "Modern Economic Problems" is now so vast that no more than a few of the titles could be included in the following lists. The references given are usually the more recent of those that would be helpful to students desiring to go more deeply into the subjects. The collection of questions and exercises is based upon the list printed, first in 1904 and much enlarged in 1910, in the author's "Principles of Economics." Much material has been added that had been shaped and used in class work at Princeton University, and a few other problems have been drawn from, or suggested by, other published lists. The plan of indicating the original sources of a num- ber of these questions has been found to be too difficult to be com- pleted for the present edition. Indeed, it appears that numerous test problems have become a common heritage for economic teachers, and one can hardly be sure when one has traced the ideas to their original sources. Some of them have appeared in somewhat differing forms in various lists for a half century past. Particular acknowledgment is made to my colleagues, Professors Adriance and McCabe, who devised a number of the questions for class use; and to Dr. Stanley E. Howard, who has given most valuable aid in the preparation of this Manual in its present form. F. A. .F Princeton, N. J., February, 1917. MANUAL OF REFERENCES AND EXERCISES IN ECONOMICS MANUAL OF REFERENCES AND EXERCISES IN ECONOMICS CHAPTER 1 MATERIAL RESOURCES OF THE NATION REFERENCES. (Those marked with an asterisk (*) are the shorter assignments that are most applicable.) Adams, G. C., Commercial geography. 1906. Marsh, G. P., Man and nature: or physical geography as modified by human action. 1864. (Later editions under the title, "The earth as modified by human action.") *Materials, 58-61 (Extract from Mason, 0. T., Technogeography, or the relation of the earth to the industries of mankind. Ameri- can Anthropologist, 7: 135-158. 1905); 61-66 (extract from Sem- ple, E. C., Influence of geographic environment. 1911.) Smith, J. R., Industrial and commercial geography, 1913. * Source Book, 292-302 (extract from) ; Daniels, W. M., Economic causes as affecting the political history of the United States. Accountants' Magazine, May, 1907. Teele, R. P., Irrigation in the United States. 1915. Trotter, $., the geography of commerce. 1903. United States Census, 1910. Volume on wealth, debt, and taxation. Van Hise, C. R., Conservation of natural resources. 1910. QUESTIONS. 1. What relation can be observed between general industrial con- ditions and the per capita wealth? Between the character of the people and the per capita wealth? Can countries be grouped geo- graphically according to per capita wealth? 2. How does the United States compare with other countries with respect to the estimated amounts and values of cereal products? Textile fibres? Coal? Iron and copper ore? Present the results of your study in tabular form. 3. From the reports of the Thirteenth Census prepare a statement 10 MANUAL OF REFERENCES in tabular form showing the geographical distribution of our chief dome.- f ic aouixes oC s-ujplv of the leading cereals, .of neat cattle, of textile fibres, of coal, iron ore and copper ore, and of water power. 4. What physical conditions account for the greatness of ancient Egypt, of Venice, of Holland, of England, of the United States? 5. Has the isothermal line any relation to the number of million- aires? CHAPTER 2 THE PRESENT ECONOMIC SYSTEM REFERENCES. Cooley, C. H., Human nature and the social order. 1902. Cooley, C. H., Personal competition. Amer. Econ. Assn., Econ. Studies, 4: 78-173. 1899. *Ely, R. T., Competition: its nature, its permanency, and its benefi- cence. A. E. Assn. Pubs., 3d ser., 2: 55-70. 1901. Ely, R. T., Evolution of industrial society. 1903. Ely, R. T., Property and contract in their relation to the distribu- tion of wealth. 1914. (2 vols.) Giddings, F. H., The economic ages. P. S. Q., 16: 193-221. 1901. *Gray, John H., Economics and the law. A. E. Rev., 5 (no. 1, supp.) : 3-23. 1914. Ririley, David, The renewed extension of government control of economic life. A. E. Rev., 4 (no. 1, supp.) : 3-17. 1914. Schmoller, Qustav, The mercantile system. Trans, by Ashley, 1896. QUESTIONS. 1. State briefly and criticize the theories of the origin of private property. 2. What have been the theories put forward to justify the system of private property in the past? 3. Under private property, can men complain of the use made by others of their wealth on the ground merely that it was unwise? 4. What are the recognized limitations upon the right of private property? Are these limitations in opposition to the principle by which private property is now generally defended? 5. Is the right of bequest a necessary condition of private property? 6. Do you know of any father who created more wealth because he could bequeath it to his son? 7. Does the son work as hard when he inherits his father's wealth? 8. What is the effect of private property on saving? 9. What is meant by the "Factory System." 10. Through what historic stages has production passed? AND EXERCISES IN ECONOMICS 11 CHAPTER 3 NATURE, USE AND COINAGE OF MONEY REFERENCES. Jevons, W. 8., Money and the mechanism of exchange. 1875. Chs. III-VII, XIII. *Johnson, J. F., Money and currency. 1905. Chs. I, II, IX. * Phillips, C. A. (Ed.), Readings in money and banking. 1916. Chs. i-ni, xiv. Walker, F. A., Money in its relations to trade and industry. 1st ed. 1879. Chs. I, II. White, Horace, Money and banking illustrated by American history. Ed. 1914. Bk. I. QUESTIONS. 1. What are the qualities of metallic money? 2. What is the difficulty in deciding whether to call the following money: gold ingots, gold coin, silver dollars, copper cents, greenbacks, bank-checks, chalk-marks to keep account? 3. Who makes coins? Would jewelers make better ones? 4. What are the advantages and disadvantages of a seigniorage tax? CHAPTER 4 THE VALUE OF MONEY REFERENCES. Fisher, Irving, The purchasing power of money. 1911. Gibson, Thomas, Special market letters on the increasing gold sup- ply and its effect on security values; interest rates; commodity prices, etc. 1908. *Johnson, chs. Ill- VIII, X. Kemmerer, E. W., Money and credit instruments in their relation to general prices. 2d ed. 1909. Magee, J. D., Money and prices. J. P. E., 21:681-711, 798-818. 1913. "Phillips, chs. VIII, XI. Round table discussion, Money and prices. A. E. Assn. Bui., 4th ser., 1 (no. 2) : 46-70. 1911. 12 MANUAL OF REFERENCES * Source Book, 303-313. (Extract from report of the Secretary of the Treasury, 1911.) United States Secretary of the Treasury, Finance report, 1911. Walker, F. A., chs. IV, V. QUESTIONS. 1. What are the functions of money? 2. What are the principal things besides money uses that cause a demand for gold and silver. 3. Why do you value money? Do you value it more than the things it buys ? 4. When goods are exchanged for money or money for goods, what is the gain? 5. If money is a tool, what does it make? 6. When gold comes out of the mine is the gain to the community greater or less than when the same value of grain is harvested? 7. Are men wealthy in proportion to the money they have? Are countries ? 8. Would a nation be poorer, if, like Sparta, it prohibited all money ? 9. Is a community poor because it has little money in circulation or does it have little money in circulation because it is poor? 10. Could a country better do without money, horses, or roads? 11. Why does nearly all the gold produced in California leave the state? What keeps any of it there? 12. The mint price of an ounce of gold, .900 fine, is alike at San Francisco and Philadelphia, $18.604. Why is gold ever shipped from California to New York? 13. Does gold cost the day-laborer as much in California as in New York? 14. Note any habits of friends that result in their carrying more or less money than others of the same income. 15. What determines the amount of money needed by different per- sons, towns, states, and nations? 16. Give examples of things that increase the demand for money. 17. On an isolated island would it make any difference as to the value of money if there were but one gold-mine or several competing ones, supposing that the output were the same? 18. What per cent, of the total money in the world is the yearly out- put of gold; of silver; of gold and silver? Stat. Abst. 19. Is the value of gold and silver due to the action of govern- ment? AND EXERCISES IN ECONOMICS 13 20. In what ways may the government determine the value of the monetary standard? 21. If all the different denominations of media of exchange were doubled in number, exchanges remaining unchanged, what would be the effect upon prices? 22. Is it true of all commodities that changes in supply affect their value proportionally? Is it true of money? If in your opinion there is any difference, explain it. 23. If the amount of coal in a country should be increased twenty- five per cent., in what percentage would you expect the value of coal to change? Give reasons. If the amount of money in a country should be increased twenty-five per cent., in what direction and in what percentage would the value of money change? Give reasons. (In each case the condition is "other things being equal.") 24. If in a given community all watch cases were made of gold, and each case contained one ounce of gold, would you expect the value of watch cases to fall by exactly one-half if the number of watch cases in the community were doubled, all other things remaining the same? If in another community (at another time) all exchanges were made exclusively by the use of gold coins, each containing an ounce of pure gold, would you expect that prices in general would be exactly doubled in case no change occurred in the community ex- cept a doubling of the number of coins in circulation? 25. Why might an increased resort to barter produce upon the general level of money prices effects similar to those produced by an increased use of credit media of exchange? 26. What gives rise to the belief sometimes held that money is an invariable standard of value? 27. Define depreciation and appreciation of the currency. What causes may produce either? What are the effects of either? More generally, what determines the value of the currency? 28. If gold were to become as plentiful as iron, would it be worth more or less than iron? 29. A nation having no foreign trade had originally in circulation 1,000,000 coins, each called a florin, and each containing an ounce of pure metal. To this original coin circulation the government adds 500,000 florins each containing one-half ounce of pure metal, and at the same time the government adds to the circulation 600,000 florins in the shape of inconvertible paper. Both the half ounce florin and the paper florin are by law made legal tender for a full weight florin. In the absence of any tendency to discriminate between accepting dif- ferent kinds of florins in domestic trade, and with no other changes 14 MANUAL OF REFERENCES in the money situation except such as are necessitated by the afore- said additions to the circulating medium, tell, first, what ultimately will be the number of florins in circulation, and give your reasons; and tell, second, of what kinds of florins and in what proportions the ulti- mate circulating medium will be composed. 30. Assume a country using gold alone as money and having in circulation 2,000,000 coins, under a system of free coinage. What would be the effect of closing the mints and issuing 1,500,000 new coins containing nine-tenths as much gold as the coins above men- tioned, assuming that the number of goods exchanged remains the same? Explain clearly. What is the total quantity of such new coins the government can issue and keep in circulation? Explain clearly. 31. A country using gold money as its sole medium of exchange, under free and gratuitous coinage, makes the following change: it imposes a seigniorage charge of ten per cent., but without giving up free coinage or reducing the amount of fine gold in the coin. To what extent and in what direction will the value of money change, if at all (a) if the number of goods exchanged gradually increases five percent.; (b) if the number of goods exchanged gradually increases twenty-five percent.? Give your reasons clearly. CHAPTER 5 . FIDUCIARY MONEY, METAL AND PAPER REFERENCES. *Jevons, chs. VIII, XVII, XVIII. * Johnson, chs. XIII-XVI. Kemmerer, E. W., Modern currency reforms. 1916. * Phillips, chs. IV, V, XII. United States Director of the Mint, Annual reports. Walker, chs. VIII-XII. White, Bk. II, chs. Ill- VI. QUESTIONS. 1. When 5160 grains of standard gold (i.e., by weight nine-tenths fine, with the other tenth composed of the alloy used in gold coin of the United States) sell in New York for $201.25 has the money "saturation point" been reached or exceeded, and will bullion be taken to the mint or coin melted down or exported? AND EXERCISES IN ECONOMICS 15 2. Define legal-tender as applied to money. What is meant by fiat money ? 3. Is a United States standard silver dollar commodity or fiduciary money? What determines its value? Of what importance is its legal tender quality? 4. Is the provision of law whereby the fractional silver coins of the United States are of less proportionate silver content than the standard silver dollar necessary to-day? Is it useful? Give your reasons. 5. Under what conditions will "bad money" fail to displace "good money" from circulation? 6. Under what circumstances will money that is not in fact con- vertible into other money have greater value than the material of which it (the first mentioned money) is made? Give an example from the monetary experience of the United States. 7. In a country which has hitherto had free and gratuitous coin- age of gold, the government institutes a seigniorage charge of five per cent, by reducing to that extent the amount of gold put into each coin; the gold withheld by the government is not coined. What will be the effect of this seigniorage charge upon (a) prices in that country, (b) the comparative value of the gold in a new coin and the same weight of uncoined gold? Make your reasoning clear. 8. If a nation's entire money circulation consisting of 1,000,000 coins, all of them debased by a seigniorage charge of 50 per cent., were at once increased by the government's putting into circulation 300,000 pieces of inconvertible paper money, each piece of the same demonina- tion as each coin, what effects might be anticipated on the basis of Gresham's law or otherwise, it being presupposed that the full amount of full weight coin required to conduct the nation's exchanges is only 900,000? Give your reasons. 9. A certain island has no silver mines and no foreign trade. It effects all its exchanges by the actual use of silver coin whose coinage is free and gratuitous. It has no banks, and does not resort either to barter or to credit. Silver is also used in the shape of plate in the island. Originally it had 100,000 silver coins in circulation, each containing one ounce of pure silver. After a certain date, as these coins were paid into the government treasury for taxes, at the rate of 5,000 one-ounce coins per week, the one-ounce coins were melted and the resulting bullion was recast, each new coin weighing 2 ounces and bearing the same name as the original one-ounce coins. Thereafter all coins struck at the island Mint contained two ounces of silver, and at that standard coinage continued free and gratuitous. When the 16 MANUAL OF REFERENCES government first pays out the new 2-ounce pieces, will they remain in circulation with the old one-ounce coins and have the same purchasing power? Give reasons. 10. If the above-described process of reminting 5,000 one-ounce coins per week continues for twelve weeks and then stops, how many old and how many new coins will at the end of the twelfth week be in circulation ? Reasons. 11. The government of the island of Guernsey having no money, is- sued paper-notes to pay for the building of a market. They circu- lated and were gradually taken up as the market earned its cost, during ten years. When they were all redeemed and burned, the island had the market free of cost. Explain how this could be done. (From Sumner's Problems in political economy.) 12. Suppose a nation has 1,000,000,000 gold coins, each weighing one ounce (Troy) as its only circulating medium. Suppose that the government enacts that henceforth coins will be uttered containing only 99 per cent, as much pure gold as heretofore, the government taking one per cent, for its own use. Suppose "other things remain the same." What effect will this action have on the number of coins circulating? Will prices be affected? Now suppose the demand for money increases. Will bullion owners bring their bullion to the mint for coinage? Suppose this government had continued to utter coins of the same weight and fineness as before, but had kept back one per cent, of the bullion brought to the mint for its own use. Answer these three questions in the light of this supposition. 13. Tabulate the index numbers, the greenback price of the gold dollar, and the gold price of the greenback dollar, from 1861 to 1879. 14. Show the difference between convertible and inconvertible money. 15. Contrast the position of the commodity money theorists with that of the fiat money theorists. 16. In a gold-standard country, one-half of whose monetary circula- tion consists of silver dollars (which are unlimited legal tender) and of silver certificates payable on demand in silver dollars (and sup- ported dollar for dollar by silver dollars in reserve), and whose mints are closed to the free coinage of silver, how would the money value of the silver dollars and silver certificates be affected if the gold price of silver should fall (1) 10 per cent.? (2) 50 per cent? (3) 5 per cent.? How would it be affected if the value of gold should fall 10 per cent? (Free coinage of gold is assumed). Explain the principles involved in your answer. AND EXERCISES IN ECONOMICS 17 CHAPTER 6 THE STANDARD OF DEFERRED PAYMENTS REFERENCES. Fisher, Irving, Appreciation and interest. A. E. Assn. Pubs., 11:331-442. 1896. Fisher, Irving, A remedy for the rising cost of living standardizing the dollar. A. E. Rev., 3 (no. 1, supp.) : 20-28. 1913. Round table discussion of above, 29-51. Fisher, Irving, Objections to a compensated dollar answered. A. E. Rev., 4: 818-839. 1914. *Jevons, ch. XXV. * Johnson, chs. XI, XII, XVII. Kinley, David, Objections to a monetary standard based on index numbers. A. E. Rev., 3: 1-19. 1913. * Materials, 787, 788 (extract from Brown, H. B., Principles of labor legislation. 1916. Ch. II, sees. 1-3. Cross, Ira B., Cooperation in California. A. E. Rev., 1 : 535-544. 1911. Fay, C. R., Cooperation at home and abroad. 1898. Oilman, N. P., Profit-sharing between employer and employee. 1889. Hoxie, R. F., Why organized labor opposes scientific management. Q. J. E., 31: 62-85. 1916-1917. Round table discussion. Industrial efficiency and the interests of labor. A. E. Rev., 2 (no. 1, supp.) : 117-130. 1912. Schloss, D. F., Methods of industrial remuneration. 3d ed., 1898. Virtue, (?. O., Cooperative coopers of Minneapolis. Q. J. E., 19:527-544. 1904-1905. AND EXERCISES IN ECONOMICS 39 Wolff, H. W., Neglected opportunities of cooperation. Econ. Rev., 16: 190-206. 1906. \ QUESTIONS. 1. With increasing division of labor is there greater or less op- portunity for the payment of laborers according to the piece-wage plan? 2. Discuss the following statement: Under the piece-work system the foreman looks out for the quality and the operative for the quantity of the work; under the time- wage system the foreman looks out for the quantity and the laborer for the quality of the work. 3. What remedy has the foreman for an inefficient laborer working under the time-wage system? 4. Is time- or piece-work best adapted to the following kinds of laborers: coal-miners, coopers, farm-hands, printers, engravers, shoe- factory hands, railroad brakemen, telegraph operators? 5. Since under the piece-work system a man is paid only for what he does is there any reason for discharging a workman employed under this plan whose efficiency falls below the average? 6. Describe any case of profit-sharing you may have seen in opera- tion. 7. In the case of a cooperative general store do economic profits emerge? If so, where do they go? 8. If you have seen a cooperative store in operation tell what was its success. 9. Compare and explain producers' and consumers' cooperation, showing the difficulties and advantages. CHAPTER 20 ORGANIZED LABOR REFERENCES. * Adams and Sumner, chs. VI, VII. Barnett, G. E., National and district systems of collective bargain- ing in the United States. Q. J. E., 26: 425-443. 1911-1912. Barnett, G. E., The dominance of the national union in American labor organization. Ibid., 27:455-481. 1912-1913. Carlton, F. T., The history and problems of organized labor. 1911. Commons, chs. II, VI. * Commons and Andrews, Ch. Ill, sec. 1. 40 MANUAL OF REFERENCES Groat, G. G., An introduction to the study of organized labor in America. 1916. Hoxie, R. F., Scientific management and labor. 1915. Hoxie, R. P., The truth about the I. W. W. J. P. E., 21 : 785-797. 1913. Hoxie, R. P., Trade unionism in the United States: general charac- ter and types; the interpretation of union types. J. P. E., 22: 201-217, 464-481. 1914. Lewis, H. T., The economic basis of the fight for the closed shop. J. P. E., 20: 928-952. 1912. McCabe, D. A., The standard rate in American trade unions. 1912. Mitchell, John, Organized labor. 1902. * Source Book, 214-227 (extract from McCabe). Webb, Sidney and Beatrice, Industrial democracy. 1897. Wolman, L., The boycott in American trade unions. 1916. QUESTIONS. 1. Are the opportunities for workmen to rise to the rank of mas- ters as great as formerly? 2. What are the chief causes of the origin and rise of trade unions? Distinguish between a trade union and a labor union. 3. What are the conditions favorable to national agreements be- tween trade unions and employers' associations? Explain clearly the bearing of each of these conditions. 4. Describe the practices included under the term "direct action," and contrast with the methods of collective bargaining and legislation. 5. Are strikes becoming more or less frequent and important in your state? In answer to this question give figures from 1881 on if obtainable, showing number of strikes; establishments affected and to what extent; loss in wages and to employers. Diagram the figures. Ref., U. S. Bu. of Labor, Annual report, 1906. 6. Do trade unions increase or decrease the number of strikes? 7. If you were an officer of a trade-union, would you begin a strike when trade was good or when it was poor? 8. Does it make any difference in the permanence of an increase of wages brought about by a strike, whether the employer is one of the more successful or one of the less successful in that business? 9. Give examples of the different kinds of boycott. What seems to be the attitude of the federal courts as to the lawfulness of boycotts? 10. Is there any similarity between the methods of trade unions and the etiquette of the medical and the legal professions? AND EXERCISES IN ECONOMICS 41 11. Some trade unions limit the number of apprentices in their trades. Is this a justifiable policy on their part? 12. Of the methods employed by trade unions to raise the wages of their members, which are prejudicial and which are not prejudicial to the interests of the rest of the community, including non-union labor? Give reasons. 13. Can wages be affected by the "collective bargaining" of trade unions and if so indicate in that connection a justification (if one exists) for trade union organization. 14. If a trade union sets a minimum rate of wages lower than the competitive market rate would be in the absence of organization, which rate would the members receive? State the facts from the Source Book which lead you to your answer. 15. Have trade unions raised or lowered the wages of non-union labor? 16. What is the attitude of American trade unions toward efficiency systems as attempts to introduce improved methods of production (not systems of payment) ? CHAPTER 21 PUBLIC REGULATION OF HOURS AND WAGES REFERENCES. Abbott, Edith, Progress of the minimum wage in England. J. P. E., 23:268-277. 1915. Women in industry. 1915. * Adams and Sumner, chs. II, VIII, XII, sees. 1-4, 9, XIII, sec. 2. Barnett, G. E., and McCabe, D. A., Mediation, investigation and ar- bitration of industrial disputes. 1916. Clark, V. 8., The labor movement in Australasia. 1906. Commons, chs. VII, VIII, XVIII, XXI. *Commons and Andrews, chs. Ill, sees. 2, 3, IV, V. Compton, W. M., Wage theories in industrial arbitration. A. E. Rev., 6: 324-342. 1916. Hammond, M. B., Judicial interpretation of the minimum wage in Australia. A. E. Rev., 3 : 259-286. 1913. Hammond, M. B., Wages boards in Australia. Q. J. E., 29: 98-148, 326-361, 563-630. 1914-1915. Holcombe, A. N., The legal minimum wage in the United States. A. E. Rev., 2: 21-37. 1912. Kelley, Florence, Minimum-wage laws. J. P. E., 20: 999-1010. 1912. 42 MANUAL OF REFERENCES Millis, H+ A., Some aspects of the minimum wage. J. P. E., 22: 132-155. 1914. Mote, C. H., Industrial arbitration. 1916. Persons, C. E., Women's work and wages in the United States. Q. J. E., 29: 201-234. 1914-1915. Suffern, A. E., Conciliation and arbitration in the coal industry of America. 1915. United States Bureau of Labor Statistics, Bui. 175. 1915. Sum- mary of report on woman and child wage-earners. Webb, Sidney, The economic theory of a legal minimum wage. J. P. E., 20: 973-998. 1912. Wise, E. F., Wage boards in England. A. E. Rev., 2: 1-20. 1912. QUESTIONS. 1. If you can do more work in two hours than in one, can you do more continuously in sixteen consecutive hours than in eight? 2. What determines the maximum study time for the earnest student ? 3. When does an industrious man stop working on his own farm, and why? 4. If production is reduced one-fourth by shorter hours, is "work made" to that degree for the unemployed? 5. Defend the minimum wage policy from the workman's point of view, and state the employers' objections thereto. 6. Suppose it were proposed to establish by law a universal nine- hour day for men. (a) Under what conditions would you consider such a law socially beneficial ? (b) What other agencies might accomplish the ends which such a law is designed to effect? (c) What are the chief social and economic effects which you would expect from such a law? CHAPTER 22 OTHER PROTECTIVE LABOR AND SOCIAL LEGISLATION REFERENCES. * Adams and Sumner, chs. V, sec. 3, XII, sec. 5, XIII, sec. 3. Addams, Jane, Child labor legislation, a requisite for industrial ef- ficiency. A. A. A., 25: 542-550. 1905. AND EXERCISES IN ECONOMICS 43 Commons, chs. XIV, XIX, XX, XXII, XXIII, XXVI, XXXVIII. * Commons and Andrews, Chs. VI, VII, IX. Fisher, W. C., The field of workmen's compensation in the United States. A. E. Rev., 5: 221-278. 1915. Leiserson, W. M., The movement for public labor exchanges. J. P. E., 23:707-716. 1915. Pigou, A. C., Unemployment. 1914. Rubinow, I. M., The problem of unemployment. J. P. E., 21: 313-331. 1913. Rubinow, I. M., Subsidized unemployment insurance. Ibid., 412-431. 1913. Sumner, H. L., and Merritt, E. A., Child labor legislation in the United States. 1915. United States Bureau of Labor Statistics, Bui. 159. 1915. QUESTIONS. 1. What classes of economic goods or services are regulated by law and why? 2. Is there any likeness between trade- unions and tariffs? Between tariffs and factory legislation? 3. What reasons are given in justification of laws closing barber shops on Sundays? 4. May a person owning a lot on a residence street of a city erect a glue factory on it? 5. What have you noted as to the benefits or hardships of restrict- ing child labor in factories? 6. In what kinds of social legislation is the federal character of our government a serious bar to experimentation? Show clearly the rea- sons why. 7. If population became stationary, neither increasing nor decreasing in numbers, and if methods were discovered which would render possible the production of the same amount of wealth per year as at present with only half the force of laborers employed, and if the average labor day were not shortened, would there not be a great and apparently permanent lack of employment? Discuss thoroughly and give reasons for your answer. 8. In what sense is the "unemployment," so manifest in a period of industrial depression, evidence that the number of workers is "in excess of the work to be done"? 44 MANUAL OF REFERENCES CHAPTER 23 SOCIAL INSURANCE REFERENCES. Adams and Sumner, ch. XII, sees. 6-8. Baldwin, F. S., Old age pension schemes: a criticism and a program. Q. J. E., 24: 713-742. 1909-1910. Commons, ch. XXV. *Commons and Andrews, ch. VIII. Foerster, R. F., The British national insurance act. Q. J. E., 26:275-312. 1911-1912. Frankel, L. K., and Dawson, M. M., Workingmen's insurance in Europe. 1910. Henderson, (7. R., Industrial insurance in the United States. 1909. Lewis, F. W., State insurance. 1909. National Civic Federation, Social Insurance Department, Report of the committee on preliminary foreign inquiry. 1915. Rulinow, I. M ., Standards of sickness insurance. J. P. E., 23 : 221- 251, 327-364, 437-464. 1915. United States Bureau of Labor, Annual reports, 1908, 1909. Warren, B. S., and Sydenstricker, Edgar, Health insurance. 1916. QUESTIONS. 1. Are industrial accidents more frequent in low paid or in high paid occupations? 2. Suggest advantages and disadvantages of a general system of compulsory industrial insurance for old age, sickness and accidents. What are the essential differences between these three forms of in- surance ? 3. Show to what extent a system of workingmen's insurance has been developed in one of the following countries: Germany, France, Italy, England. In the development of a general system of work- ingmen's insurance in the U. S., which one of the above forms will probably first come in? For what reasons has a system of this kind not been developed in the U. S. ? Henderson, C. R., Industrial insurance. CHAPTER 24 POPULATION AND IMMIGRATION REFERENCES. * Adams and Sumner, ch. III. * Commons and Andrews, ch. II, sec. 4. AND EXERCISES IN ECONOMICS 45 Fairchild, H. P., Immigration. 1913. The standard of living up or down? A. E. Rev., 6: 9-25. 1916. Fetter, F. A., Population or prosperity. A. E. Rev., 3 (no. 1, supp.) : 5-19. 1913. (Presidential address before the American. Economic Association, 1912, much of which is incorporated with chap. 24 in the text.) Goldenweiser, E. A., Walker's theory of immigration. Am. J. Soc., 18:342-351. 1912-1913. Hall, P. F., The recent history of immigration and immigration re- striction. J. P. E., 21 : 735-751. 1913. *Hamilton, Readings, 384-386, 392-395. Husband, W. W., The significance of emigration. A. E. Rev., 2 (no. 1, supp.) : 79-85. 1912. Round table discussion of above, 86-88. Jenks, J. W., and Lauck, W. J., The immigration problem. 1912. Lauck, W. J., The vanishing American wage-earner. Atlan. Mo., 110: 691-696. 1912. * Materials, 146-156. Mayo-Smith, Richmond, Statistics and economics. 1899. Bk. I, ch. V. Mayo-Smith, Richmond, Statistics and sociology. 1895. Bk. I, chs. V-VII. Millis, H. A., Some economic aspects of Japanese immigration. A. E. Rev., 5: 787-804. 1915. Page, T. W., The distribution of immigrants in the United States before 1870. J. P. E., 20: 676-694. 1912. Page, T. W., Some economic aspects of immigration before 1870. Ibid., 20:1011-1028; 21:34-55. 1912, 1913. Roberts, Peter, The new immigration. 1912. Ross, E. A., The old world in the new. 1914. * Source Book, 187-198. (Extract from Jenks and Lauck.) Warne, F. J., The tide of immigration. 1916. QUESTIONS. 1. Tabulate and chart the changes that have taken place in our immigration in regard to (1) amount, (2) character. What prob- lems are presented by these facts? Stat. Abst. 2. Explain the terms "the new immigration" and "the old immigra- tion," and give the important statistical facts regarding them. 3. Show the application of the doctrine of population to the present problem of immigration and wages in America. 4. Do the figures on immigration show anything as to the need of legislation restricting immigration? 46 MANUAL OF REFERENCES 5. What has been the effect of the recent immigration into the United States upon the use of machinery? 6. Apply the theory of wages to explain the effect of present im- migration on the wages of unskilled or slightly skilled workers. 7. If the supply of labor of any class were to be decreased ten per cent., would wages rise in like proportion? 8. Is immigration now adding to the general welfare in the United States? State the facts and general economic principles on which you base your answer. 9. If there is an immigration of half a million workers annually into a country for a period of ten years during which no new natural resources are made available, would wages in that country be affected? If so, of what classes of workers? What would be the effect on the amount of income received by land owners? 10. Explain how the general principles of price-determination hold in the determination of wages. Show how these principles apply when there is extensive employment of southern and eastern Europeans. (See Source Book.) 11. If in a given labor market the number of laborers increases while the number and technical efficiency of indirect agents remains unchanged, what change, if any, will result in the average rate of wages? What change, if any, will there be in the return to the indirect agents ? 12. Is common, unskilled labor "scarce" (in any reasonable sense of the word) in China? in the United States? CHAPTER 25 AGRICULTURAL AND RURAL POPULATION I REFERENCES. Carver, T. N., Selected readings in rural economics. 1916. Carver, T. N., The work of rural organization. J. P. E., 22: 821-844. 1914. Coulter, J. L., Agricultural development in the United States, 1900- 1910. Q. J. E., 27: 1-26. 1912-1913. Hibbard, B. H., Tenancy in the north central states. Q. J. E., 25:710-729. 1910-1911. Hibbard, B. H., Tenancy in the north Atlantic states. Q. J. E., 26: 105-117. 1911-1912. AND EXERCISES IN ECONOMICS 47 Hibbard, B. H., Tenancy in the western states. Q. J. E., 26: 363-376. 1911-1912. Hibbard, H. E., Tenancy in the southern states. Q. J. E., 27: 482-496. 1912-1913. Hoagland, H. E., The movement of rural population in Illinois. J. P. E., 20: 913-927. 1912. Nourse, E. G., Agricultural economics. 1916. (A large volume of readings, well selected and edited.) Round table discussion. The decline of the rural population. A. E. Rev., 2 (no. 1, supp) : 51, 52. 1912. Round table discussion. Rural conditions in the south. Ibid., 48-50. 1912. Taylor, H. C., Agricultural economics. 1905. Vogt, P. L., The farmer's labor income. A. E. Rev., 6: 808-822. 1916. QUESTIONS. 1. Cite any instances you have noted of local changes of population distribution as between country and city. What are the chief facts of interest in these cases? What forces can you assign as causes of the changes? Has agricultural activity been accelerated or retarded? Has it received a set-back? 2. A wealthy metropolitan banker purchases a large country estate in a section in which farming is practically on a subsistence basis and in which in recent years many farms have been abandoned. He applies labor and materials lavishly to the soil, sparing no expendi- tures for purposes which will assist in the production of crops of the best quality. Under what conditions can this be profitably done? What will be the probable effect on local agriculture, (a) if the en- tire product of the estate is consumed upon it? (b) if a substantial part of the product is marketed in competition with that of the local farmers? What changes are likely to occur with reference to the occupation of the local population? With reference to its migration? 3. Why is it that immigrants are now taking up the farms of New England which have, in some cases for years, been abandoned by native farmers? Is the fact that they are doing so an argument for or against the restriction of immigration? 4. What is the general tendency of immigrants in the matter of set- tlement in urban and rural communities? 5. If it is true that the relative decline of the agricultural popula- tion of the United States can be explained by the operation of purely economic forces, on what grounds is there justification for complaint as to the evils of concentration of population in cities? 48 MANUAL OF REFERENCES CHAPTER 26 PROBLEMS OF AGRICULTURAL ECONOMICS REFERENCES. Carver, T. N., Selected readings in rural economics. 1916. Coulter, J. L., Marketing of agricultural lands in Minnesota and North Dakota. A. E. Rev., 2:282-301. 1912. Goldenweiser, E. A., The farmer's income. A. E. Rev., 6: 42-48. 1916. Huebner, G. G,, Agricultural commerce: the organization of Ameri- can commerce in agricultural commodities. 1915. International Institute of Agricultural Statistics Year Book. Mono- graphs on agricultural cooperation in various countries. 1916. Kemmerer, E. W., Agricultural credit in the United States. A. E. Rev., 2: 852-872. *Materials, 407, 408, 409. Metcalf, R., and Black, C. G., Rural credit cooperation, and agri- cultural organization in Europe. 1915. Olmsted, V. H., The purchasing power of farm products. United States Dept. of Agric., Report, 1912. *Phillips, ch. XXVII. On agricultural credit. Powell, F. W., Cooperative marketing of California fresh fruit. Q. J. E., 24: 392-418. 1909-1910. Putnam, G. E., Agricultural credit legislation and the tenancy prob- lem. A. E. Rev., 5: 805-815. 1915. Putnam, G. E., Farm credit in Kansas. Ibid., 27-37. 1915. Putnam, G. E., The federal rural credit bill. Ibid., 6: 770-789. 1916. Shaw, A. W., Some problems in market distribution. Q. J. E., 26:703-765. 1911-1912. *Source Book, 34-47, 48-57, 75-80, 81-90. Warren, G. F., Farm management. 1913. (Treats primarily the problem of the individual farm, but also many of the broader economic questions.) Weld, L. D. H., The marketing of farm products. 1916. QUESTIONS. 1. Why has the corporate form of business organizations not been as extensively introduced into the farming industry as into other industries ? 2. Discuss the following statements quoted from an article on the AND EXERCISES IN ECONOMICS 49 Federal Farm Loan Act of 1916. "There was no necessity for any kind of federal legislation affecting the land credit problem of land- owners. . . . There is, however, the more pressing problem ... of making the conditions of country life more attractive to the younger generation of farmers. In accomplishing this end some form of land purchase legislation is needed." Amer. Econ. Rev., 6: 789. 1916. 3. How do urban and rural districts differ in their preference for and use of different kinds of bank credit. CHAPTER 27 THE RAILROAD PROBLEM REFERENCES. Brown, H. Cr., The competition of transportation companies. A. E. Rev., 4: 771-792. 1914. Brown, H. G., Transportation rates and their regulation. 1916. Clark, J. M., Some neglected phases of rate regulation. A. E. Rev., 4: 565-574. 1914. Dixon, F. H., The Mann-Elkins Act, amending the act to regulate commerce. Q. J. E., 24: 593-633. 1909-1910. Dunn, 8. 0., Railway discrimination. J. P. E., 20: 437-461. 1912. Gephart, W. F., The place of the canal in a national system of trans- portation. A. E. Assn. Bui., 4th ser., 1 (no 2) : 188-196. 1911. Round table discussion, 197-203. Hadley, A. T., Railroad transportation. 1884. Hammond, M. B., Railway rate theories of the interstate commerce commission. Q. J. E., 25: 1-66, 279-336, 471-538. 1909-1910. Johnson, E. R., American railway transportation. 3d ed., 1908. Johnson, E. R., Inland waterway policy. A. E. Assn. Bui., 4th ser., 1: 166-174. 1911. Johnson, E. R., The principles of governmental regulation of rail- ways. P. S. Q., 15:37-49. 1900. McFall, R. J., Railway monopoly and rate regulation. 1916. Materials, 627, 628. Meyer, B. H., Certain considerations in railway rate making. A. E. Rev., 4 (no. 1, supp.) : 69-80. 1914. Round table discussion of above, 81-100. Prouty, C. A., Railway discriminations and industrial combinations. A. A. A., 15: 41-50. 1900. Ripley, W. Z., (Ed.), Railway problems. 1907. 50 MANUAL OF REFERENCES Ripley, W. Z., Railroads: rates and regulation. 1912. Ripley, W. Z., Railroad overcapitalization. Q. J. E., 28 : 601-629. 1913-1914. Ripley, W. Z., Railroads: finance and organization. 1915. Source Book, 361-367, 368-378, 379-382. QUESTIONS. 1. Why is transportation a greater problem in the United States than in Europe? 2. Show in what way natural waterways have determined the loca- tion of leading cities in America. 3. Give examples of cities whose growth has been caused by rail- roads. 4. Upon what considerations are commodities classified for ship- ment by railroads? Is classification unfair discrimination? Illus- trate by an example. 5. What classes of interests are affected by increasing the minimum weight for carloads? Explain in each case whether the effect is favorable or unfavorable and the reasons therefor. 6. Does cost of service have anything to do with the rates charged by railroads? 7. Give an example of a blanket rate territory and the reasons therefor. 8. What is the "long and short haul" clause of the Interstate Commerce Act? Explain why railroads make rates which contravene the terms of this clause, and why the government should forbid the railroads to make such rates. 9. A railroad connecting two competitive points charges one-fourth of a cent per ton mile on grain shipments from its inland terminus, while it charges one cent per ton mile on grain shipments from non- competitive territory. What considerations have probably led to the establishment of the above rates? Might not the railroad increase its net revenue by raising the rate on through traffic to one-half cent per ton mile and lowering the local rate to three-fourths of a cent per ton mile? 10. The rate on corn in carload lots from Omaha, Neb. to Newport News, Va. is 10 cents per hundred pounds. From the Omaha region there are competing carriers to the Gulf and other Atlantic ports. The rate on corn in carload lots from points in Virginia to Newport News over the same route is 12 cents per hundred pounds. Could not the local rates be lowered if the carriers advanced the rates on the long-distance haul? AND EXERCISES IN ECONOMICS 51 11. What cases have you seen where the railroads impose unjustly on the public? 12. Give instances you have seen or heard of where two shippers paid different rates for the same service. 13. Do you know any large cities that are more favorable shipping points than neighboring towns? 14. What legal rights do the builders of a railroad have that are not enjoyed by all citizens? 15. Can you see any clear distinction between the public nature of a railroad and that of a horse and carriage ? 16. What harm can there be in the acceptance of passes by judges, legislators, and other public officials? 17. Ought the law prohibit the sale of tickets by "scalpers"? 18. If your neighbor rides on a pass and you pay your fare, are you helping to pay for his ride? 19. Why should preachers get half-fare rates? 20. What are the chief reasons for the governmental regulation of railways ? 21. Why does the question of the control of the railways in the in- terest of the public present especial difficulties in America? CHAPTER 28 THE PROBLEM OF INDUSTRIAL MONOPOLY REFERENCES. Bolen, G. L., Plain facts as to the trusts and the tariff. 1902. Collier, W. M., The trusts. 1900. Cotter, A., The authentic history of the United States Steel Cor- poration. 1916. Hobson, J. A., The evolution of modern capitalism. Ed., 1912. Ch. V. Jones, Eliot, The anthracite coal combination in the United States. 1914. King, W. /., The wealth and income of the people of the United States. 1915. Meade, E. 8., The economics of combination. J. P. E., 20: 358-372. 1912. Trust finance. 1903. Montague, G. H., Trusts of to-day. 1904. 52 MANUAL OF REFERENCES Ripley, W. Z., Industrial concentration as shown by the census. Q. J. E., 21:651-658. 1906-1907. (Ed.), Trusts, pools and corporations. Ed., 1916. * Source Book, 255-264. (Extract from United States Commissioner of Corporations, Report on the transportation of petroleum.) Stevens, W. S., Classification of pools and associations. A. E. Rev., 3:545-575. 1913. Stevens, W. S., (Ed.), Industrial combinations and trusts. 1913. Stevens, W. S., A group of trusts and combinations. Q. J. E., 26: 593-643. 1911-1912. Stevens, W. S., The powder trust, 1872-1912. Ibid., 444-481. 1911-1912. United States Commissioner of Corporations, Report on the trans- portation of petroleum. 1906. Willoughby, W. P., The integration of industry in the United States. Q. J. E., 16: 94-115. 1901-1902. QUESTIONS. 1. What large trusts have recently been formed? 2. State the motives for forming trusts, separating those which are socially beneficial and those which are anti-social. 3. Enumerate the advantages possessed by a "trust" over a small competitor, and indicate which of these are the results of large scale production and which are due to the possession of monopoly power. 4. Are there any conditions under which a combination would be a more economical unit of production and distribution than a single plant large enough to secure all advantages to be obtained from mere quantity of output? If so, state them clearly. 5. Explain carefully the causes and limits of the advantages of large production. Give three examples of industries in which the ad- vantages are seen. 6. Have you observed the growth of any local industry from a small beginning to large proportions? If so, how do you account for it? 7. What is the largest manufacturing establishment in your home town? Would a number of smaller establishments of the same sort and with the same aggregate capacity succeed as well? Why? 8. What relation has improved transportation and other means of communication to trusts? 9. What are the chief methods by which trusts or combinations have sought to make economies in management? 10. Describe the characteristic features of the pool, the trust and the holding company. AND EXERCISES IN ECONOMICS 53 11. Describe any agreement of which you know, made between mer- chants or manufacturers for the purpose of regulating prices. Did prices go up or down as a result? 12. What is a simple price agreement? How does it differ from a pool? Is there any difference in the matter of legality? Reasons. 13. What are the limits to the price-fixing and profit-earning powers of monopolies? Are there any other conditions which will tend to check the indefinite growth of combinations? 14. Explain and illustrate by a concrete example the circumstances relating to cost of production which tend to make a monopoly price lower than the previous competitive price for the same article. No reference is here intended to local or temporary cuts in price by monop- olies which are intent by such means on capturing a local market. 15. If all trade is exchange, do not the members of a trust reduce their income when they raise the price of their products by artificial agreement ? 16. Five plants engaged in the production of a given article in dif- ferent parts of the United States are combined under the ownership of a single corporation formed for this purpose. Before the combina- tion these five plants produced 75 per cent, of the total output of the article in question, each producing approximately 15 per cent.; the remaining 75 per cent, was produced by seven plants, no one of these turning out more than 5 per cent, of the total output. Each of the first five plants was large enough to secure all known economies in the costs of transforming the raw material into the physically finished product, and each was running to its full capacity. The aggregate net earnings of the five plants were $1,000,000 a year. The cost of reproducing these five is $14,000,000. The new corporation issues and pays to the owners of the properties taken over $10,000,000 in 5 per cent, first mortgage bonds, $6,000,000 in cumulative preferred stock, and $8,000,000 in common stock. What will determine whether this combination possesses monopoly power ? Is the corporation overcapitalized? If so, to what extent? State clearly what you mean by overcapitalization? Is it probable that the earnings of the new corporation will be greater than the aggregate earnings of the five plants, if the price of the product is not increased? If so, how will this increase be gained? If there is an increase in earnings, how will the price of each of the three kinds of securities of the corporation be affected? 17. Suppose that the effective demand for a certain kind of goods 54 MANUAL OF REFERENCES in the country as a whole will vary in the following manner with the price changes indicated: $1.00 1,000,000 units 1.10 900,000 units 1.20 800,000 units 1.30 700,000 units 1.40 600,000 units 1.50 500,000 units 1.60 400,000 units 1.70 300,000 units 1.80 200,000 units There are ten companies each producing 100,000 units at a cost of 90 cents (including all costs but an allowance for dividends on investment) this giving just enough of a margin to each company to cause it to continue in the industry. What immediate effect on prices could a combination consisting of six firms have, assuming that the cost per unit of product and that the output of the inde- pendents remain unchanged? Show for each of the prices indicated what the amount of the margin made by the four independent com- petitors (altogether) and by the combination would be. What less immediate effects would be likely to follow, and why? 18. Is granting patents an interference with trade similar to tariffs? 19. Is it right that the lucky inventor of a popular toy should make $100 a day from it? 20. Is it right that an inventor should by patent laws be able to keep the profits of his business high? CHAPTER 29 PUBLIC POLICY IN RESPECT TO MONOPOLY REFERENCES. Anderson, B. M., Jr., Competition versus monopoly the issue of the campaign. Independent, 73: 997-1002. 1912. Bolen, G. L., Plain facts as to the trusts and the tariff. 1902. Brown, W. J., The prevention and control of monopolies. 1915. Clark, J. B., The problem of monopoly. 1904. Clark, J. B., and J. M., The control of trusts. Ed., 1914. Clark, J. If., Rates for public utilities. A. E. Rev., 1 : 473-487. 1911. Collier, W. M., The trusts. 1900. AND EXERCISES IN ECONOMICS 55 Dames, J. E., Trust laws and unfair competition. 1916. Durand, E. D., The trust problem. 1915. See also Q. J. E., 28:381-416,664-700. 1913-1914. Durand, E. D., The trust legislation of 1914. Q. J. E., 29 : 72-97. 1914-1915. Ely, R. T., Monopolies and trusts. 1900. Gray, J. H., The control of public service corporations. A. E. Rev., 4 (no. 1, supp.) : 18-44. 1914. Round table discussion of above, 45-68. Hotchbiss, W. E., Recent trust decisions and business. A. E. Rev., 4 (no. 1, supp.) : 158-172. 1914. Round table discussion of above, 173-195. Jenks, J. W., The trust problem. 1900. Knauth, 0, W., Capital and monopoly. P. S. Q., 31: 244-259. 1916. Knauth, O..W., Competition and capital. Ibid., 30: 578-590. 1915. Knauttf, 0. W., The policy of the United States toward industrial monopoly. 1914. LeRossignol, J. E., Monopolies past and present. 1900. Orth, S. P. ( Ed. ) , Readings on the relation of government to prop- erty and industry. 1915. Ripley, W. Z., (Ed.), Trusts, pools and corporations. Ed., 1916. *Source Book, 383-385. The Sherman anti-trust act. Stevens, W. #., The Clayton act. A. E. Rev., 5: 38-54. 1915. The trade commission act. Ibid., 4: 840-855. 1914. United States Industrial Commission, Report. 1898-1901. 19 vols. Wright C. W., The economics of governmental price regulation. A. E. Rev., 3 (no. 1, supp.) : 126-131. 1913. Round table dis- cussion of this paper and that of J. M. Clark, 132-142. Wyman, Bruce, Control of the market. 1911. QUESTIONS. 1. What is the trust problem? 2. Does the public consider the growth of trusts to be good or bad? What do students of the question think of it? 3. Which one of the following views do you think to be nearest the truth and why? (a) The trust is a natural and inevitable out- come of modern conditions and is a distinct economic gain, (b) The trust is a result of special privileges and corporate abuses, (c) The trust is the greatest invention of this or any other age. 4. Would it be a good thing for society if a trust made great economies in production, crowded out its smaller competitors, and maintained prices just where they were before, dividing among its shareholders the amounts saved? 56 MANUAL OF REFERENCES 5. How would the effects on society be different if prices were re- duced by better organization and the prevention of waste? 6. If it could be shown that trusts have lowered prices, should th.at fact exempt them from all interference from legislation ? 7. Describe briefly the "unfair practices" of monopolistic corpora- tions. What specific features of the recent railroad and trust legis- lation are aimed at the prevention of these practices? 8. Is it good public policy to allow a trust to undersell its smaller competitor in one district while it keeps up its prices elsewere? 9. Are most positive laws intended to hinder competition or make it freer? 10. Copy from the statutes of two states far apart, those sections that pertain to anti-trust or anti-monopoly legislation. Note the general nature of this legislation, special features, penalties for viola- tions, etc., and discuss. 11. What are the main provisions in one of the following: (a) Sherman Anti- Trust Law, (b) Massachusetts Business Corporation Law, (c) The New Companies' Acts, England, (d) German Company Law. 12. Abstract and discuss the Northern Securities decision. Do you see any arguments to be advanced for pooling? Do you think the decision effective in stopping pooling? Ripley (Ed.), Trusts, pools and combinations. CHAPTER 30 PUBLIC OWNERSHIP REFERENCES. Bemis, E. T^"., (Ed.), Municipal monopolies. 1899. Brooks, R. C., Municipal Affairs, 5: 1-346. 1901. (An exhaustive and well-arranged bibliography on all aspects of municipal prob- lems.) Dewsnup, E. R., The attitude of the state toward railways, a dis- cussion of the question of nationalization. A. E. Assn. Bui., 4th Fairlie, J. A., Recent extensions of municipal functions in the ser., 1, no. 2: 175-187. 1911. (Vol. of Papers and discussions.) United States. A. A. A., 25: 299-310. 1905. Guyot, Yves, Where and why public ownership has failed. Trans, by H. F. Baker. 1914. Knapp, M. A., Government ownership of railroads. A. A. A., 19:61-73. 1902. AND EXERCISES IN ECONOMICS 57 National Civic Federation, Report on municipal and private opera- tion of public utilities. 1907. 3 vols. (A monumental study by an American delegation, which visited many cities of Europe and America; favorable, in the main, to extension of municipal owner- ship. ) Winchell, B. L., Drift toward government ownership of railways. Atlan. Mo., 110: 747-758. 1912. QUESTIONS. 1. Does every government enterprise necessarily narrow the field for private enterprise and diminish the amount of competition? 2. What forms of state activity favor survival of unfit men and bad traits of character? What forms help the fittest to survive? 3. What are municipal franchises? Where are they? 4. Why does the public consent to grant patents or public fran- chises ? 5. What kinds of municipal industries have you seen in operation ? How successful were they? 6. What are the main arguments for and against the city owner- ship and control of gas and waterworks? What troubles arise from city politics? 7. Name the industries that are owned and controlled by towns and cities of which you have a personal knowledge. Which of them are most satisfactory in your judgment? Which the least so? 8. What is the public sentiment in your home community as to the ownership of industries by the town or city? CHAPTER 31 SOME ASPECTS OF SOCIALISM REFERENCES. Brooks, J. G., The problem of syndicalism. A. E. Rev., 4 (no. 1, supp.) : 115-130. 1914. Round table discussion of above, 131-157. Clark, J. B., Social justice without socialism. 1914. Ensor, R. C. K., (Ed.), Modern socialism. 2d ed., 1907. (Selec- tions from socialistic sources.) Gladden, Washington, Tools and the man. 1893. (One example of a large number of American books appealing for the application of Christian ethics to social questions.) Hillquit, M., History of socialism in the United States. 1903. 58 MANUAL OF REFERENCES Hillquit, M., Socialism in theory and practice. 1909. Hinds, W. A., American communities. 2d ed., 1908. (Describes many experiments, all failures; by a sympathizer with socialism.) Kirkup, T., Inquiry into socialism. 3d ed., 1907. (A sympathetic, but not a partizan statement.) Lockwood, G. B., The New Harmony movement. 2d ed., 1907. Martin, John, An attempt to define socialism. A. E. Assn. Bui., 4th ser., 1 (no. 2) : 347-354. 1911. Round table discussion of above, 355-367. Menger, A., The right to the whole produce of labor. Trans. 1899. (Masterly criticism.) Rae, John, Contemporary socialism. 3d ed., 1901. (Standard work by a non-socialist.) Schaeffle, A., The quintessence of socialism. Ed., 1898. (Exposi- tion by a non-socialist, so favorable that it is used by the social- ists as a tract.) Spahr, C. B., Present distribution of wealth in the United States. 1896. Spargo, John, Socialism. 1906. (Pro.) Walling, W. E., Socialism as it is. 1912. (Pro.) Walling, W. E., and others, The socialism of to-day. 1916. (A source book.) Watkins, G. P., Growth of large fortunes. 1907. Wells, H. G., New worlds for old. 1908. (An appeal for juster distribution; Fabian school.) QUESTIONS. 1. In the last analysis is there anyone retired capitalist or un- skilled day-worker whose title to the real income he receives is derived solely from the property he owns, or solely from the labor he performs? 2. What is it to earn a living? How many people do it? 3. If capital is needed in production why is the question of justice raised when its use is paid for? 4. What is the doctrine of economic harmonies? Give three exam- ples (distinct in kind) in modern legislation which run counter to this doctrine, with the justificaton for each of these. 5. Define charity. Apply the general principles of charity to free schools, free libraries, and free clothing to school children. 6. What is economic freedom? How different from political free- dom? AND EXERCISES IN ECONOMICS 59 7. Is custom a better regulator of economic action than competi- tion? 8. What are vested rights? Do they ever stand in the way of progress ? Examples. 9. Distinguish between the socialistic and the competitive princi- ples of distribution. 10. What classes of thinkers are most inclined to take up socialism? (Classes considered socially, industrially, as to race, as to economic and historical training.) 11. If socialism reduced the total product, would it still be desirable because of the better distribution? 12. What effect would it have if the state should make laborers work for unsuccesful employers at lower wages than for successful ones ? Or should reduce rents for the less capable merchants and manufacturers ? 13. Is there any rule for determining the limits of state interfer- ence ? 14. If you had the power, what single public measure that you be- lieve would be practicable and effective would you put on the statute books, in order to make a juster division of the social income? Give reasons. 15. The wealth of the United States increased from $7,000,000,000 in 1850 to $188,000,000,000 in 1912. How was this wealth distributed according to (a) the socialistic theory of value? (b) the single tax theory? (c) the theory of value under competitive conditions? 16. What are the chief ways in which the rule of competitive value has been nullified in this period. 17. Would socialism guarantee steadiness or regularity in economic activity, thus eliminating the phenomena of economic crises and depressions? 18. In what way does taxation now shift the distribution of real in- comes as among persons? By what other methods and in what degree could such taxation be extended? THIS BOOK IS DUE ON THE LAST DATE STAMPED BELOW AN INITIAL FINE OF 25 CENTS WILL BE ASSESSED FOR FAILURE TO RETURN THIS BOOK ON THE DATE DUE. THE PENALTY WILL INCREASE TO SO CENTS ON THE FOURTH DAY AND TO $1.OO ON THE SEVENTH DAY OVERDUE. MAR 13 1941 M MAR 12 1941 LD 21-100m-7,'39(402s) PH. 376J3S UNIVERSITY OF CALIFORNIA LIBRARY