References.
Gephart, W. F., Principles of insurance. 1913.Gephart, W. F., Insurance and the state. 1913.Huebner, S. S., Life insurance. 1915.Huebner, S. S., Property insurance. 1913.
Gephart, W. F., Principles of insurance. 1913.
Gephart, W. F., Insurance and the state. 1913.
Huebner, S. S., Life insurance. 1915.
Huebner, S. S., Property insurance. 1913.
Statistical Abstract of the United States.Valgren, V. N., Farmers' mutual fire insurance in Minnesota. Q. J. E., 25: 387-396. 1910-1911.Willet, A. H., Economic theory of risk and insurance. 1901.Zartman, L. W.(Ed.), Fire insurance. Ed., 1915.Zartman, L. W.(Ed.), Life insurance. Ed., 1915.
Statistical Abstract of the United States.
Valgren, V. N., Farmers' mutual fire insurance in Minnesota. Q. J. E., 25: 387-396. 1910-1911.
Willet, A. H., Economic theory of risk and insurance. 1901.
Zartman, L. W.(Ed.), Fire insurance. Ed., 1915.
Zartman, L. W.(Ed.), Life insurance. Ed., 1915.
Questions.
1. What are the conditions of economically sound insurance? Give at least two examples.
2. What is the essential economic difference between gambling and insurance?
3. Give examples showing the difference between a gambling house and an insurance company?
4. Investors in Russian bonds are said to take out policies of insurance payable to themselves in the event of the Czar's death, their object being to guard themselves against loss by the depreciation of their Russian securities in case of political disturbances that might emerge upon a change of rulers.
(a) Do you regard such insurance as gambling or legitimate speculation from the standpoint of either insurer or insured?
(b) Do you regard the issue of such policies on the part of the insurance companies as "sound"?
5. Ought lotteries to be permitted by law?
6. Suppose 1,000 owners of 1,000 buildings worth $7,000 each wish to insure themselves against fire. If the risk for the class of buildings involved in such that seven out of 1,000 burn each year, what annual payment from each owner would be necessary to insure all against total loss—expenses of management, interest, etc., being ignored? (F. M. Taylor.)
7. Suppose that a corporation owns 500 buildings worth $100,000 each; that to insure against fire in an ordinary company would cost $250 for each building; and that the corporation is convinced that by the expenditure of $10,000 the fire loss can be reduced to an average of one building every three years. Would it pay the corporation to insure with some company? (F. M. Taylor.)
References.
Bastable, C. E., The theory of international trade. 1897.Brown, H. G., International trade and exchange. 1914.
Bastable, C. E., The theory of international trade. 1897.
Brown, H. G., International trade and exchange. 1914.
Clare, G., The A B C of the foreign exchanges. 1895.Escher, Franklin, The elements of foreign exchange. 2d ed., 1911.Goschen, Viscount, The theory of the foreign exchanges. 1898.Johnson, E. R., Probable changes in the foreign trade of the United States resulting from the European war. A. E. Rev., 6 (no. 1, supp.): 17-25. 1916. Round table discussion of above, 26-49.Johnson, E. R.,Van Metre, T. W.,Huebner, G. G., andHanchett, D. S., History of domestic and foreign commerce of the United States. 1915.*Source Book, 337-346.Willis, H. P., Transportation and competition in South American markets. A. E. Rev., 2: 814-833. 1912.
Clare, G., The A B C of the foreign exchanges. 1895.
Escher, Franklin, The elements of foreign exchange. 2d ed., 1911.
Goschen, Viscount, The theory of the foreign exchanges. 1898.
Johnson, E. R., Probable changes in the foreign trade of the United States resulting from the European war. A. E. Rev., 6 (no. 1, supp.): 17-25. 1916. Round table discussion of above, 26-49.
Johnson, E. R.,Van Metre, T. W.,Huebner, G. G., andHanchett, D. S., History of domestic and foreign commerce of the United States. 1915.
*Source Book, 337-346.
Willis, H. P., Transportation and competition in South American markets. A. E. Rev., 2: 814-833. 1912.
Questions.
1. Is it bad policy to let the people of a suburban village spend money in the city for things that could be produced at home?
2. Is it bad policy for California to buy New England manufactures?
3. Give examples of the industrial advantages of America as compared with Europe.
4. Is the alleged superior efficiency of the American workman over the competing workman of Europe connected in any way with the principle of proportionality?
5. Community A has lands that can produce wheat at a cost of 60 cents per bushel, corn at 40 cents per bushel and potatoes at 40 cents per bushel. Community B can produce wheat at 70 cents per bushel, corn at 45 cents per bushel and potatoes at 42 cents per bushel. Supposing that each community can raise just enough of these foodstuffs for its own use, will there be any incentive for them to exchange these products?
6. "A man is of all sorts of luggage the most difficult to be transported." What is the bearing of this fact upon the theory of international trade?
7. Can a country have a persisting excess of merchandise exports over merchandise imports? If so, under what conditions?
8. If foreign exchange suddenly rose several cents, while imports and exports remained the same, to what causes might it be due?
9. If as the result of a year's foreign trade nation A obtains from other nations $10,000,000 in gold coin in settlement of the balance of international indebtedness, to what extent does that sum measure the gain of nation A from international trade? Reasons.
10. The statistics of exports and imports of the United States for the year 1908-1909 show an excess of exports over imports of $351,000,000 in merchandise; $12,000,000 in silver and $48,000,000 in gold. Explain clearly how the United States could have had an excess of exports of merchandise, silver and gold in the same year.
11. If demand exchange on London were selling at $4.835 in New York, would that indicate anything as to the relative values of our imports and exports? Would gold be shipped under these conditions and if so in which direction? Explain.
12. Explain clearly the condition of commerce under which demand sterling bills of exchange will sell at $4.875 in the New York exchange market.
13. If the merchandise imports from England to the United States equalled the exports from the United States to England, what would be the state of exchange on London? Would there be any greater advantage to either of the countries engaged in trade?
14. What effect on exchange has the holding of American bonds abroad?
15. If large shipments of wheat are made to England, will bills of exchange on London be higher or lower in New York?
16. When in New York a sight draft on London for £5000 sells for $24,150, in which direction are gold remittances likely to be moving? Give reasons.
17. If England sells $10,000,000 worth of our securities to Americans, what is the effect on exchange rates?
18. Show what, in a gold-producing country, would be the relations and interaction of new gold supply, prices, relative amounts of imports and exports, and rate of exchange. (Sumner.)
19. A nation withndollars in circulation has to pay a war indemnity ofndollars to another country having the same circulation. How much money will each then have, and what will be the effect on prices, foreign trade, rate of exchange? (Davenport.)
20. Suppose an increase in the volume of our currency, due to a new issue of silver, what would be the effect upon international trade? Would this effect be lasting? Would your answer depend at all upon the condition of our currency at the time the increase occurred?
21. If through the improvement of our banking and currency system a much larger percentage of the business of the country comes to be done through the use of credits (rather than money) as the medium of exchange, what will be the effect on (a) the quantity of money in circulation, (b) the general level of prices, (c) the composition of the country's media of exchange, (d) the international movement of gold, (e) the interests of debtors and creditors, respectively?
22. Each one of two countries, A and B, can, by the application of a given amount of labor to its material resources, produce any one or all of the commodities M, N, O, P, Q, R and S, as exhibited in the following table:
(a) In the absence of restrictive legislation is each country likely to produce all of these commodities for itself? Why or why not?
(b) If conditions are such as to lead to the territorial division of labor, which commodities are most likely to be produced in each country?
(c) About which of these commodities is there the least certainty on this point? Why?
References.
Bolen, G. L., Plain facts as to the trusts and the tariff. 1902. Pt. II.Daniels, W. M., The elements of public finance. Ed., 1911. Pt. II, ch. VII.Johnson, E. H., The effect of a tariff on production. Q. J. E., 18: 135-137. 1903-1904.Patten, S. N., The economic basis of protection. 1890.*Source Book, 347-357, 358-360.Wallace, H. B., A balanced tariff. A. E. Rev., 2: 568-575. 1912.
Bolen, G. L., Plain facts as to the trusts and the tariff. 1902. Pt. II.
Daniels, W. M., The elements of public finance. Ed., 1911. Pt. II, ch. VII.
Johnson, E. H., The effect of a tariff on production. Q. J. E., 18: 135-137. 1903-1904.
Patten, S. N., The economic basis of protection. 1890.
*Source Book, 347-357, 358-360.
Wallace, H. B., A balanced tariff. A. E. Rev., 2: 568-575. 1912.
Questions.
1. Can it be of advantage to trade freely with one nation if general free trade is bad?
2. If there were no legal bar to a tariff between the states, would a tariff probably be imposed? If so, would it be a wise measure?
3. Discuss the contention that a protective tariff by helping to keep out imports of foreign goods tends to maintain a favorable balance of trade.
4. "The territorial distribution of money is both a determined and a determining factor in international trade."
Explain the meaning of this statement and show its relation to the "favorable balance of trade" argument for protection.
5. An Englishman gave this argument for protection: "If an Englishman buys a frying pan from a German for a shilling (24 cents), then England gets the frying pan and Germany gets the shilling, whereas if an Englishman buys the frying pan from an English manufacturer for 13 pence (26 cents), England gets both the frying pan and the 13 pence. The increase in price benefits England because the money remains within the country, instead of going abroad to increase the wealth of foreign nations." Give your opinion of this argument.
6. Discuss this statement: "The American people send abroad over $100,000,000 a year to pay for imported sugar. To meet this bill requires the wheat crop of over 7,100,000 acres. But all the sugar now imported could be grown on 1,700,000 acres in beets or cane. In other words we are throwing away the product of approximately 5,400,000 acres of land by not growing our own sugar."
7. A New York daily has contended that "Of course, we should be the gainers if every pound of it (raw cotton) were exported in manufactured form. Every process through which the raw material passes in its conversion into fabrics would mean employment for American wage-earners."
Discuss the proposition that the aggregate for the labor of American wage-earners is less if we export raw cotton than if we should manufacture the raw cotton in this country for export.
8. Assuming that an import duty on tea, if sufficiently high, would create a tea growing industry in the United States capable of supplying the whole domestic demand, trace the various economic effects of such a duty.
9. Who gained when Hawaiian sugar (before annexation) was admitted free of duty, while other sugar was taxed?
10. If the owners of marble quarries can show that their net income is 30 per cent. greater by reason of the protective tariff upon foreign marbles, does this show that the tariff increases the wealth of the protecting country?
11. State any proposition which you think that you can maintain about the relation between high or low wages and international competition. Maintain your proposition.
12. What do you say to the plan of so adjusting duties on imports as to equalize the "labor cost" of imported and domestic commodities,through the levy of duties which will just offset the higher wages paid by the American employer?
13. Is a high rate of money wages an obstacle to the successful conduct of industry in competition with countries where money wages are low?
14. What was the argument originally used as to the comparative wage levels here and abroad so far as the starting of certain industries in this country was concerned? Compare this argument with the current protectionist argument as to the relation between the tariff and the present general wage level in the United States.
15. What help should the law of wages give in explaining the present inequality as among the wage scales in Germany, France, England and the U. S.?
16. If it would pay us to admit goods free, may we be justified in taxing them to force concessions from the other country?
17. What conditions as to consumption and production at home and abroad would be most favorable to the shifting of an import duty on a manufactured article entirely to the consumer?
18. (a) A and B are two tropical islands inhabited by friendly peoples and producing the same commodities. The climate, soil and topography of A are such that all kinds of products can be produced there with less effort than they can be produced in B. Could there be any incentive for the people of A to trade with the people of B?
(b) Debarring all feelings of hostility and of sentimental attachment to home, is there any reason why the people of B should not all emigrate to A?(c) Could B equalize conditions of production by enacting a protective tariff on the products of the two islands?(d) Suppose A were discovered after a strong civilization had grown up on B. Might conditions be such that A could with advantage to itself exact a protective tariff?
(b) Debarring all feelings of hostility and of sentimental attachment to home, is there any reason why the people of B should not all emigrate to A?
(c) Could B equalize conditions of production by enacting a protective tariff on the products of the two islands?
(d) Suppose A were discovered after a strong civilization had grown up on B. Might conditions be such that A could with advantage to itself exact a protective tariff?
References.
*Blakey, R. G., The new revenue act. A. E. Rev., 6: 837-850. 1916.Curtis, J. F., The administrative provisions of the revenue act of 1913. Q. J. E., 28: 31-45. 1913-1914.Hoffmann, I. N., Customs administration under the 1913 tariff act. J. P. E., 22: 845-871. 1914.
*Blakey, R. G., The new revenue act. A. E. Rev., 6: 837-850. 1916.
Curtis, J. F., The administrative provisions of the revenue act of 1913. Q. J. E., 28: 31-45. 1913-1914.
Hoffmann, I. N., Customs administration under the 1913 tariff act. J. P. E., 22: 845-871. 1914.
McKinley, Wm., History of tariff legislation, 1812-1896. 1896.Sumner, W. G., History of protection in the United States. 1877.Taussig, F. W., How tariffs should not be made. A. E. Rev., 1: 20-32. 1911.Taussig, F. W., Tariff History of the United States. 6th ed., 1914.Taussig, F. W., The tariff debate of 1909 and the new tariff act. Q. J. E., 24: 1-38. 1909-1910.*Willis, H. P., The tariff of 1913. J. P. E., 22: 1-42, 105-131, 218-238. 1914.
McKinley, Wm., History of tariff legislation, 1812-1896. 1896.
Sumner, W. G., History of protection in the United States. 1877.
Taussig, F. W., How tariffs should not be made. A. E. Rev., 1: 20-32. 1911.
Taussig, F. W., Tariff History of the United States. 6th ed., 1914.
Taussig, F. W., The tariff debate of 1909 and the new tariff act. Q. J. E., 24: 1-38. 1909-1910.
*Willis, H. P., The tariff of 1913. J. P. E., 22: 1-42, 105-131, 218-238. 1914.
Questions.
1. In the light of American tariff history what would you say were (1) the principal advantages and (2) the principal disadvantages of a highly protective tariff as a primary source of public revenue? Illustrate your points by historical references.
2. If other countries can carry our commerce cheaper than we can do it ourselves and if the citizens of this country can invest their money with greater profit in other industries, what are the advantages and disadvantages of allowing those countries to carry our commerce?
3. Tabulate and diagram the values of the imports and of the exports of the U. S. to and from Europe, N. A., S. A., Asia, Oceanica and Africa for the latest five years reported. Discuss the question of American exports and imports in a paragraph not exceeding 200 words in length. Stat. Abst. (under Progress of U. S.).
4. Make a list of the ten leading articles exported from and the ten leading articles imported into the U. S. for the latest year available. What do these show as to the position of the U. S. in international commerce? Stat. Abst.
References.
*Bullock, C. J., Selected readings in public finance. 1906. Chs. VIII, IX.The growth of federal expenditures. P. S. Q., 18: 97-111. 1903.*Daniels, Pt. II, chs. I-IV.Edgeworth, F. Y., The subjective element in the first principles of taxation. Q. J. E., 24: 459-470. 1909-1910.*Plehn, C. C., Public finance. 3d ed., rev and enl. 1913. Pts. I, II.
*Bullock, C. J., Selected readings in public finance. 1906. Chs. VIII, IX.
The growth of federal expenditures. P. S. Q., 18: 97-111. 1903.
The growth of federal expenditures. P. S. Q., 18: 97-111. 1903.
*Daniels, Pt. II, chs. I-IV.
Edgeworth, F. Y., The subjective element in the first principles of taxation. Q. J. E., 24: 459-470. 1909-1910.
*Plehn, C. C., Public finance. 3d ed., rev and enl. 1913. Pts. I, II.
Round table discussion of taxation.A. E. Assn. Bul., 4th ser., 1 (no. 2): 333-346. 1911.Seligman, E. R. A., Essays in taxation. 8th ed., 1913.
Round table discussion of taxation.A. E. Assn. Bul., 4th ser., 1 (no. 2): 333-346. 1911.
Seligman, E. R. A., Essays in taxation. 8th ed., 1913.
Questions.
1. Does taxation ever infringe on the right of private property?
2. What is it a citizen gets in return for his taxes?
3. Is there any relation between the taxes paid and the benefits secured from government?
4. In what ways may we understand the proposition that taxation should be proportioned to ability?
5. It is claimed by some that the use by the government of indirect taxes increases existing inequalities in the personal distribution of wealth. What reasons may be given for or against this opinion?
References.
Brooks, R. C., The German imperial tax on the unearned increment. Q. J. E., 25: 682-709. 1910-1911.Bullock, Chs. XI, XV.Compton, W. M., Recent tendencies in the reform of forest taxation. J. P. E., 23: 971-979. 1915.*Hamilton, Readings, 560, 561.Robinson, M. H., The Federal corporation tax. A. E. Rev., 1: 691-723. 1911.*Source Book, 130-137.Tucker, R. S., The British taxes on land values in practice. Q. J. E., 29: 794-819. 1914-1915.United States Bureau of Corporations, Report on the taxation of corporations. Pts. I-IV. 1909-1912.Special report on taxation. 1913.Young, A. N., The single tax movement in the United States. 1916.
Brooks, R. C., The German imperial tax on the unearned increment. Q. J. E., 25: 682-709. 1910-1911.
Bullock, Chs. XI, XV.
Compton, W. M., Recent tendencies in the reform of forest taxation. J. P. E., 23: 971-979. 1915.
*Hamilton, Readings, 560, 561.
Robinson, M. H., The Federal corporation tax. A. E. Rev., 1: 691-723. 1911.
*Source Book, 130-137.
Tucker, R. S., The British taxes on land values in practice. Q. J. E., 29: 794-819. 1914-1915.
United States Bureau of Corporations, Report on the taxation of corporations. Pts. I-IV. 1909-1912.
Special report on taxation. 1913.
Young, A. N., The single tax movement in the United States. 1916.
Questions.
1. A recent newspaper item says: "This is the year real estate is assessed. Turn the cow loose in the front yard, tear down the fence, make things look generally dilapidated, for it will be money in your pocket." What does this indicate regarding taxation?
2. The parts of an estate divided into fifteen equal shares by expertreal estate agents were soon after assessed variously from $900 to $2850 for purposes of taxation. What does this indicate? (From Sumner's Problems.)
3. Explain how and why the general property tax has been breaking down in the United States with reference to the taxation of public service corporations.
4. What is meant by the separation of state and local revenues? What advantages do the advocates of separation claim for their plan? What is your judgment with reference to its advisability?
5. What is meant by the proposition that a single tax on land values is paid for all time by the one who owns the land at the time the tax is first imposed?
6. How does Massachusetts tax interstate railroads running through the state? What defects, if any, do you see in the Massachusetts plan?
7. Can taxation be used to secure some of the profits of large corporations?
References.
Adams, T. S., The effect of income and inheritance taxes on the distribution of wealth. A. E. Rev., 5 (no. 1, supp.): 234-244. 1915.The place of the income tax in the reform of state taxation. A. E. Assn. Bul., 4th ser., 1 (no. 2): 302-321. 1911.*Blakey, R. G., The new income tax. A. E. Rev., 4: 25-46. 1914.Bowley, A. L., The British super-tax and the distribution of income. Q. J. E., 28: 255-268. 1913-1914.*Bullock, chs. XII, XVI.The taxation of property and income in Massachusetts. Q. J. E., 31: 1-61. 1916-1917.Daniels, Pt. II, ch. VIII.Grice, J. W., Recent developments in taxation in England. A. E. Rev., 1: 488-504. 1911.Hill, J. A., The income tax of 1913. Q. J. E., 28: 46-68. 1913-1914.Seligman, E. R. A., The income tax. Ed., 1914.Smith, R. H., Distribution of income in Great Britain and incidence of the income tax. Q. J. E., 25: 216-238. 1910-1911.West, Max, The inheritance tax. 2d ed., 1908.
Adams, T. S., The effect of income and inheritance taxes on the distribution of wealth. A. E. Rev., 5 (no. 1, supp.): 234-244. 1915.
The place of the income tax in the reform of state taxation. A. E. Assn. Bul., 4th ser., 1 (no. 2): 302-321. 1911.
*Blakey, R. G., The new income tax. A. E. Rev., 4: 25-46. 1914.
Bowley, A. L., The British super-tax and the distribution of income. Q. J. E., 28: 255-268. 1913-1914.
*Bullock, chs. XII, XVI.
The taxation of property and income in Massachusetts. Q. J. E., 31: 1-61. 1916-1917.
Daniels, Pt. II, ch. VIII.
Grice, J. W., Recent developments in taxation in England. A. E. Rev., 1: 488-504. 1911.
Hill, J. A., The income tax of 1913. Q. J. E., 28: 46-68. 1913-1914.
Seligman, E. R. A., The income tax. Ed., 1914.
Smith, R. H., Distribution of income in Great Britain and incidence of the income tax. Q. J. E., 25: 216-238. 1910-1911.
West, Max, The inheritance tax. 2d ed., 1908.
Questions.
1. What is the present status of the inheritance tax in the American commonwealths?
2. Discuss the proposition that income is the normal source of taxation.
3. Outline the history of income tax legislation by the federal government. What were the conditions which led to the income tax legislation of 1913?
4. What conception of income does the recent income tax embody? Illustrate some peculiar distinctions resulting from this use of "income."
5. What is your opinion concerning the justice of progressive taxation?
6. Name the two principal arguments in favor of progressive taxation. Which two arguments in favor of progressive taxation do you consider the strongest and why? Which two arguments against progressive taxation do you consider the weakest and why? To what kinds of taxes, if to any, is the principle of progression inapplicable and why?
References.
*Adams, T. S., andSumner, H. L., Labor problems. 8th ed., 1914. Chs. IV, IX, X.Commons, J. R.(Ed.), Trade unionism and labor problems. 1905. Ch. XI.*Commons, J. R., andAndrews, J. B., Principles of labor legislation. 1916. Ch. II, secs. 1-3.Cross, Ira B., Coöperation in California. A. E. Rev., 1: 535-544. 1911.Fay, C. R., Coöperation at home and abroad. 1898.Gilman, 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, G. O., Coöperative coopers of Minneapolis. Q. J. E., 19: 527-544. 1904-1905.Wolff, H. W., Neglected opportunities of coöperation. Econ. Rev., 16: 190-206. 1906.
*Adams, T. S., andSumner, H. L., Labor problems. 8th ed., 1914. Chs. IV, IX, X.
Commons, J. R.(Ed.), Trade unionism and labor problems. 1905. Ch. XI.
*Commons, J. R., andAndrews, J. B., Principles of labor legislation. 1916. Ch. II, secs. 1-3.
Cross, Ira B., Coöperation in California. A. E. Rev., 1: 535-544. 1911.
Fay, C. R., Coöperation at home and abroad. 1898.
Gilman, 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, G. O., Coöperative coopers of Minneapolis. Q. J. E., 19: 527-544. 1904-1905.
Wolff, H. W., Neglected opportunities of coöperation. Econ. Rev., 16: 190-206. 1906.
Questions.
1. With increasing division of labor is there greater or less opportunity 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 operation.
7. In the case of a coöperative general store do economic profits emerge? If so, where do they go?
8. If you have seen a coöperative store in operation tell what was its success.
9. Compare and explain producers' and consumers' coöperation, showing the difficulties and advantages.
References.
*AdamsandSumner, chs. VI, VII.Barnett, G. E., National and district systems of collective bargaining 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.*CommonsandAndrews, Ch. III, sec. 1.
*AdamsandSumner, chs. VI, VII.
Barnett, G. E., National and district systems of collective bargaining 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.
*CommonsandAndrews, Ch. III, sec. 1.
Groat, G. G., An introduction to the study of organized labor in America. 1916.Hoxie, R. F., Scientific management and labor. 1915.Hoxie, R. F., The truth about the I. W. W. J. P. E., 21: 785-797. 1913.Hoxie, R. F., Trade unionism in the United States: general character 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.
Groat, G. G., An introduction to the study of organized labor in America. 1916.
Hoxie, R. F., Scientific management and labor. 1915.
Hoxie, R. F., The truth about the I. W. W. J. P. E., 21: 785-797. 1913.
Hoxie, R. F., Trade unionism in the United States: general character 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 masters 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 between 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?
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)?
References.
Abbott, Edith, Progress of the minimum wage in England. J. P. E., 23: 268-277. 1915.Women in industry. 1915.*AdamsandSumner, chs. II, VIII, XII, secs. 1-4, 9, XIII, sec. 2.Barnett, G. E., andMcCabe, D. A., Mediation, investigation and arbitration of industrial disputes. 1916.Clark, V. S., The labor movement in Australasia. 1906.Commons, chs. VII, VIII, XVIII, XXI.*CommonsandAndrews, chs. III, secs. 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.
Abbott, Edith, Progress of the minimum wage in England. J. P. E., 23: 268-277. 1915.
Women in industry. 1915.
Women in industry. 1915.
*AdamsandSumner, chs. II, VIII, XII, secs. 1-4, 9, XIII, sec. 2.
Barnett, G. E., andMcCabe, D. A., Mediation, investigation and arbitration of industrial disputes. 1916.
Clark, V. S., The labor movement in Australasia. 1906.
Commons, chs. VII, VIII, XVIII, XXI.
*CommonsandAndrews, chs. III, secs. 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.
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,Bul.175. 1915. Summary 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.
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,Bul.175. 1915. Summary 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?
References.
*AdamsandSumner, chs. V, sec. 3, XII, sec. 5, XIII, sec. 3.Addams, Jane, Child labor legislation, a requisite for industrial efficiency. A. A. A., 25: 542-550. 1905.
*AdamsandSumner, chs. V, sec. 3, XII, sec. 5, XIII, sec. 3.
Addams, Jane, Child labor legislation, a requisite for industrial efficiency. A. A. A., 25: 542-550. 1905.
Commons, chs. XIV, XIX, XX, XXII, XXIII, XXVI, XXXVIII.*CommonsandAndrews, 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., andMerritt, E. A., Child labor legislation in the United States. 1915.United States Bureau of Labor Statistics, Bul. 159. 1915.
Commons, chs. XIV, XIX, XX, XXII, XXIII, XXVI, XXXVIII.
*CommonsandAndrews, 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., andMerritt, E. A., Child labor legislation in the United States. 1915.
United States Bureau of Labor Statistics, Bul. 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 restricting 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 reasons 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"?
References.
AdamsandSumner, ch. XII, secs. 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.*CommonsandAndrews, ch. VIII.Foerster, R. F., The British national insurance act. Q. J. E., 26: 275-312. 1911-1912.Frankel, L. K., andDawson, M. M., Workingmen's insurance in Europe. 1910.Henderson, C. 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.Rubinow, 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.,andSydenstricker, Edgar, Health insurance. 1916.
AdamsandSumner, ch. XII, secs. 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.
*CommonsandAndrews, ch. VIII.
Foerster, R. F., The British national insurance act. Q. J. E., 26: 275-312. 1911-1912.
Frankel, L. K., andDawson, M. M., Workingmen's insurance in Europe. 1910.
Henderson, C. 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.
Rubinow, 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.,andSydenstricker, 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 insurance?
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 workingmen'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.
References.
*AdamsandSumner, ch. III.*CommonsandAndrews, ch. II, sec. 4.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 restriction. 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., andLauck, 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.
*AdamsandSumner, ch. III.
*CommonsandAndrews, ch. II, sec. 4.
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 restriction. 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., andLauck, 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 problems are presented by these facts? Stat. Abst.
2. Explain the terms "the new immigration" and "the old immigration," 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?
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 immigration 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 byland 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?
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.
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.
Hibbard, B. H., Tenancy in the western states. Q. J. E., 26: 363-376. 1911-1912.Hibbard, B. H., 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.
Hibbard, B. H., Tenancy in the western states. Q. J. E., 26: 363-376. 1911-1912.
Hibbard, B. H., 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 expenditures 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 entire 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 settlement in urban and rural communities?
5. If it is true that the relative decline of the agricultural population 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?
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 American commerce in agricultural commodities. 1915.International Institute of Agricultural Statistics Year Book.Monographs on agricultural coöperation 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., andBlack, C. G., Rural credit coöperation, and agricultural 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., Coöperative marketing of California fresh fruit. Q. J. E., 24: 392-418. 1909-1910.Putnam, G. E., Agricultural credit legislation and the tenancy problem. 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.
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 American commerce in agricultural commodities. 1915.
International Institute of Agricultural Statistics Year Book.Monographs on agricultural coöperation 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., andBlack, C. G., Rural credit coöperation, and agricultural 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., Coöperative marketing of California fresh fruit. Q. J. E., 24: 392-418. 1909-1910.
Putnam, G. E., Agricultural credit legislation and the tenancy problem. 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 theFederal Farm Loan Act of 1916. "There was no necessity for any kind of federal legislation affecting the land credit problem ofland-owners.... There is, however, the more pressing problem ... of making the conditions of country life more attractive to theyoungergeneration 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?
References.
Brown, H. G., 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, S. O., Railway discrimination. J. P. E., 20: 437-461. 1912.Gephart, W. F., The place of the canal in a national system of transportation. A. E. Assn. Bul., 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. Bul., 4th ser., 1: 166-174. 1911.Johnson, E. R., The principles of governmental regulation of railways. 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.
Brown, H. G., 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, S. O., Railway discrimination. J. P. E., 20: 437-461. 1912.
Gephart, W. F., The place of the canal in a national system of transportation. A. E. Assn. Bul., 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. Bul., 4th ser., 1: 166-174. 1911.
Johnson, E. R., The principles of governmental regulation of railways. 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.
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.
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 location of leading cities in America.
3. Give examples of cities whose growth has been caused by railroads.
4. Upon what considerations are commodities classified for shipment by railroads? Is classification unfair discrimination? Illustrate 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?
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 interest of the public present especial difficulties in America?
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 Corporation. 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. I., The wealth and income of the people of the United States. 1915.Meade, E. S., The economics of combination. J. P. E., 20: 358-372. 1912.Trust finance. 1903.Montague, G. H., Trusts of to-day. 1904.
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 Corporation. 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. I., The wealth and income of the people of the United States. 1915.
Meade, E. S., The economics of combination. J. P. E., 20: 358-372. 1912.
Trust finance. 1903.
Trust finance. 1903.
Montague, G. H., Trusts of to-day. 1904.
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 transportation of petroleum. 1906.Willoughby, W. F., The integration of industry in the United States. Q. J. E., 16: 94-115. 1901-1902.
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.
(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 transportation of petroleum. 1906.
Willoughby, W. F., 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 advantages 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.
11. Describe any agreement of which you know, made between merchants 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 monopolies 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 different parts of the United States are combined under the ownership of a single corporation formed for this purpose. Before the combinationthese 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 goodsin the country as a whole will vary in the following manner with the price changes indicated:
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 independents remain unchanged? Show for each of the prices indicated what the amount of the margin made by the four independent competitors (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?