Readings in current economic problems

Preface

This book of readings is intended only for the use of students in elementary economics in the University of Michigan. It is designed particularly to meet the needs of the classes in Political Economy 2, students who have already had a stiff, course in economic theory, and who need a general introduction to current economic problems, giving them some conception of the extent of the field, the interrelation of the problems, and a clear perspective of the subject as a whole, as a preparation for courses in specific subjects, which most of them will take later.

it is a theory of mine that in general, but particularly in the field of the social sciences, every university should use its own textbooks. Purely local conditions, the general spirit and tone of the institution, the traditions of the department, the personnel and intellectual interests of the instructorial force, the previous courses which the students have had, particularly in the department, the courses which they are expected to go into, — all of these, and a number of other things, many of them too intangible to be expressed in set terms, must influence the purpose, the methods, and the content of every course of instruction. To some extent these things find their expression through the work of the teacher in the class room, but sometimes they are of such importance as to determine the whole character of the course. This is particularly the situation with a course that follows a definite elementary course, and prepares the way for equally definite advanced courses. In view of the transitional function of the course, the use of a general text, even were one available covering the realm of Current Economic Problems, written without regard to the exigencies of its local use, would prove only h^lf -satis factory. With it as a basis, a course could be made to serve local needs only by a rather extensive use of the lecture. But this method of instruction has almost universally proved to be uneconomical, deadening and too formal and stiff to meet the needs of students who are alike human and individual. The only alternative is a text prepared to meet local conditions. The latter, if published by the educational institution and without pecuniary profit as an object, permits the frequent issue of small editions, and allows the book little by little to adapt itself to existing pedagogical needs.

vi PREP AC B

It is not my idea that the basis of a course which deals primarily with "current" economic problems should be a book of readings. It seems to me that a text, presenting a unified perspective of the field, supplemented by a collection of readings, and the rather extensiye use of current periodicals, would much better serve the purpose. Since, however, no suitable text is available, and the demands on my time have for the present precluded the writing of such a text, a book of readings is offered as the most suitable substitute. But for that reason the present volume is made to serve two purposes only one of which it should properly be called upon to fulfil. To some extent it contains readings which constitute the back-ground of the course. To some extent it is a collection of readings illustrative of views antagonistic to those of the instructors in the course and of selections which throw interesting side-lights on some of the main questions discussed. The latter function is the one which the book should be made to perform. And it is hoped that later circumstances will be such that it can be confined to its proper function.

Accordingly there is no pretense of presenting a unified or complete treatment of current economic problems in this volume. The unity of the course for which this book is intended is to be found in the simultaneous use of a number of complementary means of instruction. In addition to this book the course makes use of a book of problems and exercises, a limited number of lectures, and a course of supplementary reading. The unity is to be found in these complementary instruments, each of which is valuable only in connection with the others.

Yet there is more unity of purpose in the book than the list of readings seems to indicate. The selections come from very miscellaneous sources. They are written by men possessed of the widest variety of economic, political, and sociological opinions. Not only in theory, but in interpretation of facts, they are often contradictory. They represent the most orthodox and the most heterodox attitudes on public questions. A large number of readings are entirely out of harmony with the views of the instructors on the subjects with which they deal. Many of them are regarded by them as almost wholly fallacious. But for these very reasons their efifect may be all the more a unified one. It is hoped that they will help the student to approach current economic problems without personal or class bias ; that he will come to see that his opinions are not necessarily the expression of economic verity ; that he will acquire a willingness to hold his judgment on public questions in abeyance. Vital and valid arguments in favor of a proposition antithetical to that in which the student believes should do much to prevent haste in the

PREFACE vii

formation of his final judgment. Antagonistic and even erroneous arguments have their pedagogical value. Stimulation is by provocation as well as by suggestion, and it is hoped that more than one of the readings which follow will provoke the student into a more careful formulation of his opinions and a clearer statement of his reasons for possessing them.

The above implies that it is not the purpose of the courses in which his book is used to "solve" public economic problems. In a single course, coveringthe number of problems treated here, it is quite impossible for the student to acquire the thorough acquaintance with the subject which should precede the formation of final opinions. The function of the book, therefore, is introductory: it is to open questions, not to close them. Further, it is extremely doubtful whether the kind of questions with which this book deals can be settled dogmatically. On the validity of an economic principle or a definite economic law, as, for instance, the law of diminishing returns, the economist can and must be dogmatic. On a question of public policy, involving, not one, but many economic considerations, as well as aspects which transcend the economic and get into the realm of the political, the social, and the religious, the economist cannot be dogmatic. There is no common denominator in terms of which conflicting economic considerations can be balanced against each other, and the comparison of political, social, and economic considerations against one another transcends the ability of any economist to find a common unit of measurement in terms of which conflicting interests varying so widely in nature can be adequately gauged. Therefore, since almost every question of public policy involves these conflicting considerations, it is doubtful whether any course, no matter how thorough, can present the kind of unity which resides in definite proposals for the elimination of the evils that inhere in economic institutions. This lack of dogmatism, however, must not be allowed to lead to the inculcation of a catholic attitude toward economic fallacy or to discourage a careful and painstaking analysis of the questions treated.

Nevertheless there is substantial unity running through the present volume. The readings have been selected with the end in view of showing the intimate connection between seemingly distinct economicdnstitutions and distinct economic problems. They should show that none of these problems can be solved in isolation. Further the view-point of the book is frankly historical. Not only is industrial society and its institutions the result of a process of development, but the principal problems of today can be understood rightly only when it is clearly seen that they have emerged in the course of viii PRBFACE

this process of development. Again, as industrial society develops and its institutions change, each of these problems is assuming new forms. For instance, the tariff question in 1913, in its influences and effects, was quite a different question from the tariff question of 1897. Consequently the readings convey the impression that the problems of today are not to be quickly solved ; and that their gradual solution, or obsolescence, will introduce new problems quite as difficult and complex. And they should reveal the view-point underlying the course, that the problems are not to be solved in isolation, exclusively by legislation or some other kind of mechanical tinkering, but only by consciously directing towards a given end the gradual development of industrial society.

The character of the selections used deserves a word of explanation. In general they aim to emphasize the theoretical aspects of the subjects treated and to present the psychological attitudes of various classes in industrial society, rather than present summaries of the so-called "facts." This is due to my belief that the fundamental differences between the proposals of those whose views are antithetical, as well as the terms in which the various problems are conceived by different classes, are due. not to any failure to get at the facts or I any misunderstanding of them, but to radically different view-points Jfon the part of the various classes. Further the gathering of facts is necessarily based upon underlying theory, and the interpretation of facts once gathered is wholly a matter of theory. Often it is much more important to determine the theory underlying an investigation into facts than to gather the facts themselves. To cite a single example, what valuation is made the basis for the determination of the rates which railroads will be allowed to charge in the future is almost entirely a question of the theory of value which will be made the basis of the evaluation. Further, even though the facts may be rapidly changing, many questions of economic importance remain fundamentally the same. So, while facts have by no means been excluded, they have not been used to such an extent as to cause the book to neglect real fundamentals.

It will be noticed that the volume is composed of a very large number of short selections rather than a very few long ones. Whatever may be said about the value of having a student go through long readings and pick the heart of the problem out of matter extended and rather diffusive, it seems to me that this type of a book of readings does not meet the needs of an elementary course. With the longer readings it is entirely out of the question to secure in the space available reading sufficient either in scope or in intensity for a real university course. Long readings contain too much

PREFACE ix

extraneous matter and use too much space in covering the really imiportant and salient points. Much of the illustrative matter in such readings the student can supply for himself from his observation or from his supplementary reading. Consequently I have taken from books and articles what has suited my purposes, and, by cutting out what is not essential, I have reduced nearly all the readings to one-half or one-fourth of their former length. In some cases the reduction has been even more drastic. In this process of adaptation the aim has been to preserve the original words of the author. Only a word or two has been changed now and then for the sake of coherence. Since, however, the purpose of the book is pedagogical, no attempt has been made to indicate the omissions from the originals. Further the foot-notes contained in the original have been omitted. Explanatory notes, perhaps necessary were the book to be put into general use, are quite unnecessary so long as it is used by instructors who know the purpose of each selection and who have been more or less responsible for the book. For the sake of improving the looks of the page the references to the sources from which the readings come are all put in the table of contents.

A part of the material in this book appeared in mimeographed form a year ago, and was tried out in the class-room. Such readings as met the test have been included in the present volume, though changes have been made in nearly all of them in the light of this class-room experience. A great deal of the material in the present volume has not had that test, and is used here for the first time.

In concluding I wish to acknowledge my obligations to my colleagues at the University of Michigan who, in various ways too numerous to be mentioned here, have contributed to the production of this book. My obligations to Prof. F. M. Taylor, Mr. S. M. Hamilton, and Mr. Henry Rottschaefer have been particularly great. I wish also to express my appreciation of the valuable aid received from Prof. Carl E. Parry, of Ohio State University, in connection with the section on labor problems. My obligations to various publishers for permission to use material which is copyrighted are acknowledged in detail in the table of contents.

Walton H. Hamilton.

The University of Michigan, January 22, 1914.

I

. THE DEVELOPMENT OF ^lODERN INDUSTRIAL

SOCIETY.

A. Ideals Underlying Modern Industrial Development.

1. The Essential Characteristics of Modern Indiis-

triahsm. By ^^'alton H. Hamilton i

2. The Contribution of Christian Teaching to Indus-

trial Development. By William Cunningham. . 4 Adapted from ^-lii Essay on Western Civilizaiion in its Economic Aspects, II, 6-10, 35-36.

B. The JManor^ A Sele-Sufficient Economy.

3. A vShort vSketch of the English Manor.

By William J. Ashley 6

Adapted fro'in An Introduction to English Economic History and Theory, I, 5-49.

4. The Economic Independence of the Manor.

By J. Dorsey Forrest 9

Adapted from The Development of Western Civilization, 163-167. Cop.vright by the Universit}' of Chicago.

C. Selected Gild Documents.

5. Ordinances of the Gild Merchant of South-

ampton 10

University of Pennsylvania, Translations and Reprints from the Original Sources of European History, Vol. //, No. I, English Towns and Gilds, 12-17.

6. Articles of the Spurriers of London 12

University of Pennsylvania, Ibid., 21-22.

7. Ordinances of the White-Tawers 13

University of Pennsylvania, Ibid., 23-25.

8. Preamble to the Ordinances of the Gild of the

Tailors, Exeter 13

University of Pennsylvania, Ibid., 26.

xii TABLE OF CONTENTS

D. The Poi,icy oi? the Town.

9. The Spirit of Solidarity in the Mediaeval Town.

By Walton H. Hamilton 13

E. The Development oe Commerce.

10. A Definition of Commerce. By J. Dorsey Forrest. 16

Adapted from The Development of Western Civilisation, 194. Copyrig-bt by The University of Chicago.

11. The Attitude of the Alediaeval Church toward

Commerce. By William J. Ashley . 17

Adapted from An Introduction to Englisli Economic History and Theory, I, 126-132.

12. The Contribution of the Church to Commercial

Development. By J. Dorsey Forrest 19

Adapted from 7'he Development of Western Civilisation, 176-179, 190-194. Copyright by The University of Chicago.

13. Italian Commerce and Industry in the Fourteenth

Century. By Thomas B. Macaulay 21

Adapted from the essay on Machiavelli.

F. Mediaeval Commercial Practices.

14. A Prohibition of Certain Commercial Practices. . 2.1

Adapted from the Lazvs of Henry HI and Edtuard I.

15. Mediaeval Tricks of Trade.

Adapted from a thirteenth century sermon, translated in ■Coui.TGN'j A Mcdiaezral Garner, 348-354.

G. Early Economic Theory.

16. The Characteristics of Mercantilist Doctrine.

By John Kells Ingram 25

x\dapted from A History of Political Economy, 37-40.

H. Aspects oe the Industrial Revolution.

17. The Characteristics of the English People.

By Alfred Marshall 27

Adapted from Principles of Economics, sixth edition, 740-74L

18. English Industry on the Eve of the Revolution.

By Arnold Toynbee 28

Adapted from Industry and Democracy, in Lectures on the Industrial Revolution, 179-188.

TABLE OF CONTENTS xiii

19. The Antecedents of the Revolution.

By WilHam Cunningham 31

Adapted from An Essay on Western Civilisation in its Economic Aspects, II, 225-228.

20. The Nature and Scope of the Industrial Revolu-

tion. By J. H. Clapham 33

Adapted from Chapter XXIII, Economic Change, in A Cambridge Modern History, X, 727-739.

21. How Machinery Invades Correlated Industries.

By Karl Marx 36

22. A Socialistic View of the Industrial Revolution.

By Allan L. Benson 37

Adapted from The Truth about Socialism, 6-7. Copyright by the author.

23. The Significance of the Revolution.

By G. Grant Robertson 38

Adapted from England under the Hanoverians, 328-346.

I. C[tar.acte;ristics of the New Industrialism.

24. The Function of Capital. By J. Dorsey Forrest. . 42 Adapted from The Development of Western Civilisation,

331-338- Copyright by The University O'f Chicago.

25. The Characteristics of the Factory System.

By Carl Biicher 43

Adapted from Industrial Evolution, 173-176, translated by S. Morley Wickett. Copyright by Henry Holt and 'Company.

26. The Machine Process. By Thorstein B. Veblen. . 44 Adapted from The Theory of Business Enterprise, S-19.

Copyright by Charles Scribner's 'Sons.

J. The Extension oe Modern Industrialism.

27. The Competitive Victory of Western Culture.

By J ames Bryce 47

Adapted from an address delivered before The International Congress of Historical Studies, London.

xiv TABLE OF CONTENTS

II. Fundamental Institutions Of Modern Industrial Society

A. Compp:t].tion.

28. A Condemnation of Competition.

By Charles Kingsley 49

Cheap Clothes and Nasty^ in Alton Locke, Ixviii-lxix.

29. Economic Activity as a Struggle for Existence.

By Arthur Fairbanks 49

Adapted from Introduction to Sociology, 239-254.

30. Competition and CVganization.

By Charles H. Cooley 51

Adapted from an article in The American Journal of Sociology, XIII, 655-658.

31. The Competitive Principle in State-Owned Indus-

tries. By Westel Woodbury Willoughby. ... 52 Adapted from Social Justice, 308-310. Copyright by The Macmillan Company.

32. Competition and Selfishness. By S. J. Chapman. . 53 Outlines of Political Economy, 17-18.

33. Competition and Social Service. By J. A. Hobson 54 Adapted from The Industrial System, 307-308.

34. State Determination of the Plane of Competitive

Action. By Henry C. Adams 55

Adapted from The Relation of the State to Industrial Activity, 39-47.

B. The Legai, System.

35. The Economic Foundation of Law.

By Archelle Loria 5^

Adapted from The Economic Foundations of Society, 80-81. Translated by L. M. Keasbey.

36. Law in Political Economy. By John R. Commons. 58 Adapted from The Distribution of Wealth, 59. Copyright

by The Macmillan Company.

37. Conflict of Social Welfare and Individual Liberty,

Due Process of Lazv, 361-363. Copyright by The Edward Thompson Company.

38. Uniformity in Law. By Frank J. Goodnow 60

Adapted from Social Reform and the Constitution, \ 147-148. Copyright by The Macmillan Company.

TABLE OF CONTENTS : xv

C. Private; Property.

39. A Definition of Private Property.

By Richard T. Ely 61

Adapted from Socialism and Social Reform, 306. Copyright by Thomas Crowell and Company.

40. The Right of Property. By John Austin 61

Lectures on Jurisprudence, II, 828.

41. Property and the Distribution of Wealth.

By John Stuart Mill 62

Adapted from The Principles of Political Economy, I, 258, 275-295.

42. The Economic Eoundation of Property.

Adapted from Principles of Economics, II, 248-257. Copyright by The Macmilian Company.

D. Freedom of Contract.

43. Freedom of Contract and Individual Liberty .65

Butchers' Union Company vs. Crescent City Company. Ill U. S. 756.

44. Freedom of Contract and the General Welfare. . . 66

U. S. vs. Trans-Missouri Freight Association. 58 Fed. Rep. 58.

45. Static Assumptions of Contractual Freedom.

By Roscoe Pound 66

Adapted from Liberty of Contract, 18 Yale Law Journal, 454-487-

46. Individualism and Freedom of Contract.

By Thorstein B. Veblen 69

Adapted from The Theory of Business Enterprise, 271- 278. Copyright by Charles Scribner's Sons.

E. Credit.

47. The Social Importance of Credit.

By William Roscher. 71

Adapted from Principles of Political Economy, I, 268- 274. Translated by John J. Lalor.

48. The Sensitiveness of the System of Credit.

By Edward D. Jones 72

Adapted from Economic Crises, 153-178. Copyright by The Macmilian Compan}'.

F. The Corporation.

49. The Nature of the Business Corporation.

By Harrison S. Smalley 74 xvi TABLE OF CONTENTS

50. Distribution of Risk and Ownership in the Corpor-

ation. By W. H. Lyon yy

Adapted from Corporations, a Book of Corporation Finance, 6-16. Copyright by the author.

51. Methods of Stock- Watering 79

Tlie Final Report of the Industrial Commission, XIX,, 406-407.

52. The Function of the Corporation.

Adapted irom The Principles of Political Economy, 86-89. Copyright by The Macmi'llan Company.

53. Disadvantages of the Corporate Form.

By Henry Rogers Seager 83

Principles of Economics, 161-163. Copyright by Henry Holt and Company.

54. Rights and Duties of Corporations.

By Henry C. Adams 84

Economics and Jurisprudence, 16-18.

0. Specui^ation.

55. The Zoology of Stock Speculation.

By Charles Duguid 86

Adapted from The Stock Exchange, 65-71.

56. Why the Prices of Securities Rise and Fall.

By Francis W. Hirst 88

Adapted from The Stock Exchange, 199-210. Copyright by Henry Holt and Company.

57. The Social Value of the Stock Exchange.

By William C. Van Antwerp 91

Adapted from The Stock Exchange from Within, 6-32. Copyrig'ht by the author.

58. The Functions of Exchanges.

By Charles A. Conant 93

Adapted from Wall Street and the Country, 88-116. Copyright by the author.

59. Speculation and the Preservation of Competition.

By Harrison H. Brace 95

Adapted from The Value of Organised Speculation, 205-221. Copyright by Hart, Schaffner and Marx.

60. The Experience of Germany with Stock Exchang-

es 98

Adapted from The Report of the Hughes' Committee {N. Y.) on Speculation in Securities and Commodities.

TABIB OF CONTENTS ' xvii

III. The Social Control Of Industrial Activity

6i. The Nature of Social Progress. By L.T. Hobhouse. loi Adapted from Social Evolution and Political Theory, 7-25. Copyright 'by The Columbia University Press.

B. Ti-iR Rise o^ Laisskz-Faire.

62. The Individualistic Spirit of America.

By Walter E. Weyl 104

Adapted from The Neiv Democracy, 36-49- Copyright by The Macmillan Company.

C. Historical Aspects oe the Laissez-Faire Concept.

63. The Fundamental Law of Nature.

By William Blackstone 108

Commentaries on the Laws of England, bk. i, sect. 2.

64. A Diatribe Against Human Institutions.

By J. J. Rousseau 108

£inile on l' Education, liv. i.

65. A Plea Against Governmental Restraints.

By Adam Smith 109

The Wealth of Nations, bk. iv, ch. ii.

66. A General Condemnation of Government.

By William Godwin no

Adapted from An Enquiry concerning Political Justice and its Influence on General Virtue and Happiness, S14, 561, 564, 555, 168, 575, 579-

67. The Identity of Individual and Social Good.

By Piercy Ravenstone 1 1 1

A Fezv Doubts as to the Correctness of Some Opinions Generally Entertained on the Subjects of Population and Political Economy, 2-3.

68. A Protest against Useless Restrictions.

By Jeremy Bentham 112

Truth against Ashurst, 234.

D. The Character and Meaning oe Laissez-Faire.

69. The Economic-PoHtical Philosophy of Individual-

ism. By Albert V. Dicey 113

Adapted from Lectures on the Relation between Law and Public Opinion in England during the Nineteenth Century, 125-149. Copyright by Macmill'an and Com- :v pany.

xviii TABLE OF CONTENTS

70. The Authoritative Basis of the Laissez-Faire Con-

cept. By Walton H. Hamilton 115

71. The Unscientific Character of Laissez-Faire.

By J. E. Cairnes 117

Adapted from Political Economy and Laissez-Faire, in Essays in Political Economy, 240-252.

72. How Laissez-Faire has Worked out in Practice.

By L. T. Hobhouse 119

Adapted from Liberalism, 81-101. Copyright by Henry Holt and Company.

E. Thu Limits oi' the; Province of Government.

73. The Individualistic Conception of the Province of

■ Government. By John Stuart Mill 121

■ Adapted from Principles of Political Economy, bk. v,

ch. xi.

74. The Collectivis'tic Conception of the Province of

Government. By Albert V. Dicey 126

Adapted from Law and Public Opinion in England, 258- 301. Copyright by M'acmillan and Co'm'pany.

F. Aspects oe the Movement for Sociae Controe.

75. A Refutation of the Evolutionary Argument

against Social Control. By W. Lyon Blease . . . . 129 Adapted from A Short History of English Liberalism,

■ 327-341. Copyright by T. Fisher Unwin.

76. The Futility of Utopian Legislation.

By George Chatterton-Hill . 132

Adapted from Heredity and Selection in Sociology, 439-443- yy. The Necessity for a New Social Basis in Law.

By Justice Oliver W. Plolmes 133 .

Lochner vs. N. Y., 198 U. S. 74.

78. The Logic of Social Reform. By Herbert Croly. . 134

Adapted from The Promise of American Life, 150-154. Copyright by The Macmi'Ilan Company.

79. A Program of Social Reform.

By Woodrow Wilson 135

Adapted from the Inaugural Address, March 4, 1913.

G. Conservative Factors in Current Industrial Deveeopment.

80. A Defense of an Industrial Aristocracy.

Adapted from Aristocracy and Evolution, 152-175. Copyright by The Macmillan Company.

TABLU OF CONTENTS xix

8i. Judicial Decisions and Social Reform.

By Frank J, Goodnow 140

Adapted from Social Reform and the Constitution, 290- 291, 307-308-

82. The Dominance o£ the Entrepreneur View-Point

in Politics. By Walton H. Hamilton 142

H. Governmental Means of Sociae Reform.

83. Taxation as a Means of Social Control.

By Adolph Wagner 146

Adapted from Finanszvisseuschaft, I, paragraph 27, and II, paragraph 159.

IV. The Tariff Problem

A. The Factors in the Problem.

84. The Basis of International Trade.

Adapted from Introductory Economics, 273-282. Copyright by The School of L,i'beral Arts and Sciences for Non-Residents.

85. The Nature and Classification of Import Duties.

By George M. Fisk 149

Adapted from International Commercial Policies, 62-67. Copyright by The Macmillan Company.

86. A Definition of Free-Trade. By W. G. Sumner. . 150 Protectionism, 17.

87. A Definition of Protection. By George F. Hoar. . 151

Quoted in Atkinson, Taxation and Work, 8l

B. Tariff History.

88. A Short Sketch of American Tariff History.

By Harrison S. Smalley 151

C. Aspects of the Framing of a Tariff Bile.

89. Resolution of the National Wool Growers Associa-

tion and the National Association of Wool Manufacturers 159

Presented to the Ways and Means Committee of the House of Representatives, 60th Cong., 2nd Sess., House Document 143, 533i-

XX . TABLE OF CONTENTS

90. An Argument for High Duties upon Woolen

Goods. By N. T. Folwell 159

91. How Duties are Sometimes Secured.

By William Whitman and S. N. D. North 160

92. The Conflict of Interests 161

Based upon evidence presented in The Congressional Record, 1909.

93. The Play of Special Interests. By A. S. Bolles. . . 161

The Financial Flistovy of the United States, 479-480.

D. Tpie Undivrwood-Simmons Tariff Act.

94. Theory of a Competitive Tariff 162

Report to Accompany H. R., 3321, 63rd Cong., ist Session, Report No. 5, xvi-xviii.

95. Excerpts from the Underwood-Simmons Act 165

The Tariff Act of October 3, 1913, on Imports into the United States, 1-03.

E. The Case; for Protection.

96. Protection and Industrial Transformation.

By Friedrich List 170

Adapted 'from The National System of Political Economy, passim.

97. What Protection has Done.

By Robert ElHs Thompson 171

Protection to Home Industry, 57-58.

98. Eree-Trade Destroys the Earm. Anonymous .... 172

Clipping from the Chicago Journal of Commerce, date unknown.

99. America's Allegiance to Protection.

By Albert J. Eeffingwell 174

Adapted from an article in the London Contemporary Reviezu, July, 1880.

100. Protection and the Formation of Capital.

Adapted from an article in The Political Science Quar- ; terly, XXIII, 221-241.

TABLB OP CONTENTS xxi

F. Thk Cas^ against Protection.

loi. Infant Industries and the Tariff.

By Frank W. Taussig 179

Adapted from Protection to Young Industries as Applied in the United States. Copyright 'by the author.

102. The Limited Industrial Effects of Protection.

Introduction to Economics, 87-89, 356-357. Copyright by D. C. Heath and Company.

103. Free-Trade and Depopulation. By C. F. Bastable. . 183

The Theory of International Trade, 160-162. Copyright by iMaomillan and Company.

104. American Free-Trade and American Prosperity.

By George Baden-Powell 185

Adapted from State Aid and State Interference, Z^-Zl- Copyright by Chapman and Hall.

105. An Economic and Moral Indictment of Protection.

By WilHani Smart 187

Adapted from T//,? Return to Protection, 90-94. Copyright by Macmillan and Company.

G. The; Influence of thk Tariff on Wages.

106. The Early Uses of the Wages Argument.

The Tariff History of the United States, 65-66. Copyright by G. P. Putnam's Sons.

107. Protection's Benefits Go to Labor.

By Theodore Justice 189

60th Cong., 2nd Sess., House Document 145, 5267.

108. What Fixes the Rate of Wages?

By Simon N. Patten 189

Adapted from The Economic Basis of Protection, 59-63. Copyright 'by J. B. Lippencott Com'pany.

109. The Effect of Industrial Changes on Wages.

Adapted from Introduction to Economics, 359-361. Copyright by D. C. Heath and Company.

IT. Current Arguments for Freer Trade.

no. Free Trade and International Peace.

By Rt. Hon. Winston S. Churchill 192

Adapted from a speech reported in The Proceedings of the International Free Trade Congress, 5-8.

xxii TABLB OP CONTENTS

111. A Socialist's Plea for Free Trade.

By Edward Bernstein 194

Ad'apted from a paper reported in, Ibid., 27-28.

112. Freer Trade and Industrial Efficiency.

By William C. Redfield 195

Adapted from The New Industrial Day, 81-102, 120, 122, 127, 130-131. Copyright by The Century Company.

I. Scientific Revision oe the Tariee.

113. Economic Investigation the Basis for Tariff Legis-

lation. By Henry C. Emery 200

Adapted from an article in The American Economic Review, H, 20-25. Copyright by The American Economic Association.

114. The Impossibility of Ascertaining Costs.

By H. Parker Willis 202

Adapted from an articl'e in The Journal of Political Economy, XIX, 374-376.

A. The Money Trust.

115. Is there a Money Trust ? By George W. Dowrie . . 204

B. SUSCEPTIBIEITY OE ModERN INDUSTRIALISM TO DISTURB-

ANCE.

116. Business Organization and the Industrial Equilib-

rium. By Edward D. Jones 208

Adapted from Economic Crises, 21-57.

117. Extent of the Use of Credit Instruments in Busi-

ness. By David Kinley 211

Adapted from The Use of Credit Instruments in Payments in the United States, 199-202, 6ist Cong., 2nd Sess., Senate Documents, Vol. 9.

C. The Industriae Cycle.

118. The Periodicity of Fluctuations in Trade.

By S. J. Chapman 212