CORNELL UNIVERSITY LIBRARY BOUGHT WITH THE INCOME OF THE SAGE ENDOWMENT FUND GIVEN IN 189I BY HENRY WILLIAMS SAGE Cornell University Library Z7161 .R58 Briefs on public questions, with selecte olin 3 1924 029 600 743 Bm| Cornell University VB Library The original of tliis book is in tlie Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924029600743 BRIEFS ON PUBLIC QUESTIONS BRIEFS ON PUBLIC QUESTIONS WITH SELECTED LISTS OF REFERENCES BY RALPH CURTIS gJNGWALT, A.B., LL.B. MEMBER OF THE NEW YORK BAR; FORMERLY LECTURER IN PUBLIC SPEAKING IN COLUMBIA UNIVERSITY ; JOINT-EDITOR OF " BRIEFS FOR DEBATE," BTC, ETC. LONGMANS, GREEN, AND CO. 91 AND 93 FIFTH AVENUE, NEW YORK LONDON AND BOMBAY 1906 A, lo'i.L'^o Copyright, 1905, By Longmans, Green, and Co. All rights reser'vtd First Edition, May, 1905 Reprinted, January, igo6 '"l/tlo THE UNIVERSITY PRESS, CAMBRIDGE, u. s. A. TO J. C. R. AND J. S. R. PREFACE This is a series of argumentative briefs and lists of references on twenty-five of the most important public questions of the day. For greater precision in the argument, each brief has been prefaced with a concise proposition, stating the question for discussion. A few short paragraphs have then been given, explaining why the subject is important, what facts material to it are generally conceded by both sides, and what apparently are the chief points at issue. Then follows the brief proper, a discussion of these issues from the affirmative and the negative points of view. Each main division of a brief is preceded by a list of references, giving information about or evidence in support of the statements that follow. In the briefs I have attempted little beyond an analysis and arrangement of the more important argu- ments put forward by those who have written on the same topics. Largely because of the limitation of space, only the main lines of an argument have been given ; no especial effort has been made to invent new or original arguments ; and whenever a writer's wording of his point has seemed to be particularly effective I have not hesi- tated to use it. For these reasons, as no one is likely to viii ' PREFACE recognize more readily than myself, the book doubtless contains many statements to which exception may be taken and which can scarcely be supported by facts. I have felt, however, that the value of the work would be increased, rather than lessened, by this elimination of my own convictions ; and hence I have never disregarded an argument, made in evident good faith, simply because it seemed to me personally unsound. The only end I have had in mind in preparing the lists of references is their usefulness. I have tried to give the most important books on each topic, and especially, references to available books, — those which are, or ought to be, in every large library. The lists are by no means exhaustive; the specialist will be obliged to make many additions to them, additions particularly in the nature of reports and documents, and of refer- ences to periodicals having only a comparatively small or a class circulation. But I believe that not a few are the most complete that have thus far been brought together. Where other bibliographies have come to my attention, I have noted them at the beginning of my " General References." R. C. R. April, 1905". CONTENTS POLITICS Brief Page I. Naturalization i * II. Woman Suffrage '. 8 III. Negro Suffrage : 17 IV. An Educational Qualification for Suffrage . 25 V. The Resiriction of Immigration 31 VI. Chinese Immigration 42 VII. Direct Legislation 50 VIII. Proportional Representation 59 IX. The Popular Election of Senators .... 67 X. The Retention of the Philippines .... f^ XI. The Monroe Doctrine 84 ECONOMICS XII. Protection and Free Trade 95 XIII. Commercial Reciprocity 105 XIV, Reciprocity with Canada 113 XV. Shipping Subsidies 121 XVI. Trusts 131 XVII. An Asset Currency 143 XVIII. Postal Savings Banks 151 X CONTENTS SOCIOLOGY . Brief Page ' XIX. Government Ownership of Railways . . . 163 XX. A Postal Telegraph 1 74 XXI. MuNiaPAL Transportation 184 XXII. A Federal Divorce Law 194 XXIII. The Single Tax 202 XXIV. Compulsory Industrlil Arbitration . . . . 210 XXV. Government by Injunction 219 INDEX . 227 POLITICS POLITICS NATURALIZATION Proposition : The naturalization laws of the United States should be made more stringent. Introduction General References : F. Van Dyne, Citizenship of the United States ; J. W. Guentzer, Citizenship and How to Ob- tain it; P. Webster, Treatise on the Law of Citizenship ; P. Webster, Law of Naturalization ; C. P. Daly, Naturalization ; A. P. Morse, Treatise on Citizenship ; A. C. Bernheim, History of the Law of Aliens ; A. B, Hart, Actual Government, Chap. 2 (Bib.); J. J. Lalor, Cydopcedia of Political Science, I., 58; II., 959; New International Encyclopcedia, XII., S72; Revised Statutes of the United States, Sees. 2165-2 174; World Almanac (Naturalization Laws) ; Francis Wharton, Digest of the International Law, Chap. 7 ; Great Britain, Report of the Inter-departmejital Committee on Acts relating to Naturalization (1901) ; American Historical Association, Annual Report, i8gj, p. 319 ; jgoi. Vol. i, p. 301 ; Atlantic Monthly, LXXV., 345; Americati Law Review, XXIII., 759; XXIV., 616; XXIX., 52. I. The question is important. A. Because of the continued growth of immigration. B. Because of 2 POLITICS the intimate relation between citizenship and the suffrage. C. Because of the frauds which, it is alleged, have been committed. II. It is generally admitted. A. That United States courts and jnany State courts have jurisdiction in naturalization proceedings. B. That the principal provisions of the law are as follows: I. A declaration of intention must belfiled two years before the applica- tion for citizenship.^ 2. The applicant, previous to his admission, must have resided continuously for five years in the United States and for one year in the State where the oath is taken. 3. During this period he must have borne a good moral character. 4. He must re- nounce all allegiance to foreign powers. 5. He must be loyally disposed to the principles of the Constitution of the United States. C. That the effect of this law is : I. To clothe an alien at home with all the civil and political privileges of a native-born subject. 2. To afford him abroad the full protection of the United States government. 3. But not necessarily to con- fer the elective franchise. D. That the following changes, tending to make the law more stringent, have been suggested: i. Jurisdiction should be limited to United States courts. 2. The period of residence should be lengthened. 3. The procedure should be made more regular and formal. 4. No one should be admitted to citizenship who is unable to read, write, and to understand the Constitution. HI. The question whether these changes should be adopted seems to rest on three main issues. A. Are the provisions of the present law satisfactory? B. Have the results of the law been satisfactory? C. Are the proposed changes in the law wise? NATURALIZATION 3 Brief for the Affirmative References: N. S. Shaler, The Citizen; D. J. Brewer, American Citizenship ; John Chetwood, Immigration Fallacies, Chap. 4; James Bryce, The American Commonwealth (3ded.), I., 419; II., 99; Report of the Industrial Commission, XV., Ixix; Twelfth Census, I., clxxxi-ccxxi, 865-1006; II., xxxii- xxxiv, xcvii-cxxvi, 411-500; Report of the Commissioner of Education, igo2. Vol. i, Chap. 18; Senate Reports, 52nd Cong., 2nd Sess., No. 1333, p. 205 ; House Reports, 50th Cong., 2nd Sess., No. 4024 ; 51st Cong., 2nd Sess., No. 3808 ; 52nd Cong., ist Sess., No. 697 ; 53d Cong., ist Sess., No. 139 ; Foru7n, IV., 397 ; VII., 597 ; XIII., 128, 475 ; XIV., no, 608, 813 ; y^XSAl., 686 ; North American Review, Vol. 136, p. 541 ; Vol. 137, p. 417; Vol. 138, p. 415 ; Vol. \Tj,^.%i'} ; America7i Magazine of Civics, VI., 202, 392 ; VII., 23, 411 ; VIIL, 64, 134; IX., 225,414; Century, XXXVII., 621; LXVIL, 472; Political Science Quarterly, I., 199 ; Educational Review, XII., 120; International Review, XL, 197 ; International Journal of Ethics, VIII., 22 ; Jour7ial of Social Science, XXXIX., 49 ; New Englander, XLIX., 305 ; Education, XIX., 30 ; Nation, XXIV., 348, 362 ; XLL, 503 ; Fublic Opinion, XXXII., 165. I. The provisions of the present law of naturalization are unsatisfactory. A. The requirements are inade- quate. I. Citizenship is granted to those who are abso- lutely illiterate. 2. To those who are ignorant of our laws, customs, and institutions. 3. To those who have wrong notions of government and the State. 4. To those who have no sympathy for the principles which they swear to support. B. Many of the requirements of the law may be evaded. i. Citizenship may be obtained by persons of bad moral character. 2. By those who have never forsaken their old allegiance. 3. By those who have not lived in the United States the required time. 4 POLITICS C. The law admits of improper procedure. r. The oath may be improperly administered, x. By clerks and deputies, y. Without judicial cognizance or for- mality, z. To large groups at the same time. 2. No effort to examine qualifications or to verify allegations is necessary. 3. Professional perjurers may be ac- cepted as witnesses. II. The results of the law have been unsatisfactory. A. In State and national politics. I. Naturalized per- sons have wielded great political power unwisely. .*". In support of factional and racial interests, y. To further old-world antipathies, s. To subvert American ideals and institutions. B. In local and municipal govern- ments. I. Many grave evils have been caused by the naturalized vote. w. Corrupt elections. x. Untrust- worthy and dishonest officials, y. Extravagant and inefficient administrations, z. The strength of bosses, demagogues, and machines. C. In the nation's for- eign relations. i. Citizenship has been obtained by foreign residents for the sole purpose of avoiding the burden of native allegiance. 2. To protect and ad- vance treasonable conspiracies against friendly powers. m. The proposed changes in the law are wise. A. Jurisdiction should be restricted to Federal courts. I. Inequalities would thus be removed. 2. Responsibil- ity would be fixed. B. The period of residence should be lengthened. i. Five years is too brief a period to secure sympathy and co-operation with the principles of the government. C. The procedure should be regu- lated. I. The dignity and importance of the oath should be enhanced. 2. Careful examination should be made of the antecedents and qualifications of applicants. 3. Proper witnesses should be required. 4. A com- NATURALIZATION S plete record of proceedings should be kept. D. An educational test should be applied. i. Such a test would raise the standard of citizenship, x. By exclud- ing outright the most undesirable and dangerous classes, i'. Ignorance and ilhteracy go hand in hand with po- litical imniorahty, social unfitness, and economic dis- tress, y. By insuring from naturalized persons some understanding of our laws and institutions. 2. An educational test would make for a more intelligent and responsible use of the franchise, x. Without the ability to read and write voters cannot understand parties or issues. 3. It would hasten the assimilation of the foreign element. Brief for the Negative References : House Reports, 50th Cong., 2nd Sess., No. 4024, Pt. 2; North American Review, Vol. 52, p. 209; Forum, VIII., 684 ; XL, 541 ; XIV., 103, 600 ; Atlantic Monthly, LXXVIIL, 445, 655; LXXXVL, 535 j Popular Science Monthly, LIL, 387 ; American Magazine of Civics, IX., I ; Harper's Magazine, XCVL, 429 ; Scribner's Maga- zine, XXIX., 301 ; World's Work, I., 381 ; Outlook, LXXIII., 29, 260, 555, 968; Nation, XLV., 518; LXII., 2^% ; Journal of Social Science, XXXIX., 67; Central Law Journal, II., 303- I. The provisions of the present law of naturalization are satisfactory. A. The requirements are adequate. I. Applicants must show that they are attached to the principles of the Constitution. 2. They must be of good moral character. 3. Continuous residence is re- quired to afford a knowledge of our institutions and form of government. 4. The criticisms advanced have been against the administration of the law, not against the 6 POLITICS law itself. B. The procedure prescribed is proper. I. Proceedings are judicial, and only higher courts have cognizance. 2. Competent witnesses are required. 3. Penalties are attached to fraudulent statements. 4. Courts are empowered to make a full examination into the facts of every case. 5. The criticisms ad- vanced have been criticisms of the procedure in a few overworked courts. II. The results of the law have been satisfactory. A. Naturalized persons have, as a whole, made excellent citizens. i. Politically. zw. They have been attached to American institutions, x. They have furnished many able statesmen and political leaders, y. They have made excellent soldiers, z. They have uniformly taken the right side on public questions. 2. Socially, x. They have contributed energy and vitality to the race. y. They have stood for progressive social ideals, z. They have been orderly and law-abiding. 3. Economically. X. They have been thrifty, diligent, and prosperous. B. The statement that naturalized persons have de- graded the suffrage is untrue. i . The evils of American politics are due to other causes than the naturalized vote. X. To the influence of the money power and corporations. y. Tothe indifference of the better classes, z. Tocorrupt and selfish leadership. 2. Results in the nation as a whole must not be judged by the experience of a few great cities. 3. The question of qualifications for suffrage is one wholly apart from that of qualifications for citizenship. X. Naturalization is a question only of allegiance, y. In many States unnaturalized aliens are permitted to vote. III. The proposed changes in the law are unwise. A. It would be unwise to restrict jurisdiction to Federal courts. I. Federal courts are less accessible. 2. The NATURALIZATION 7 cost of the process would be greatly increased. 3 . State judges have better means of testing the qualifications of applicants and the truth of statements. B. It would be unwise to lengthen the required period of residence. I. Aliens should be induced to take an interest in pub- lic affairs as soon as possible and to have a stake in the government. 2. Five years is ample time to acquire a knowledge of our institutions and laws. C. It would beunwisetorequirean educational qualification. i. An educational qualification is unsound in principle, x. Ed- ucation is no criterion of worth, y. No measure of patriotism or virtue, z. No index to general ability or intelligence. 2. An educational qualification would work positive harm. x. A large class would perma- nently be without hope of representation in government. y. Discontent and open revolt would be encouraged. z. Desirable immigration would be discouraged. 3. There is no good reason for applying a severer test to foreign than to native-born voters. II WOMAN SUFFRAGE Proposition: The suffrage should be given to women. Introduction General References : E. C. Stanton and others, History of Woman Suffrage (4 vols.); M. Ostrogorski, The Rights of Women ; G. J. Bayles, Woman and the Law ; W. E. H. Lecky, Democracy and Liberty, II., Chap. 10; New Inter- natiotial Encyclopcedia, XVII., 835 (Bib.) ; New American Supplement to the Encyclopcedia Britannica, V., 3181 ; W. D. P. Bliss, Encyclopedia of Social Reform, -p"^. 1399-1417; World Almanac (Woman Suffrage) ; New York Constitutional Con- vention, Debates on Woman Suffrage (1894) ; International Congress of Women, Women in Politics ; W. P. Reeves, State Experiments in Australia and New Zealand, Chap. 3 ; James Bryce, The American Commonwealth (3d ed.), II., Chap. 96 ; "Woman Suffrage in Local Self Government," in Political Science Quarterly^ VI., 677; Annals of American Academy of Political and Social Science, XVIII., 552, 556; Chaictauquan, XIII., 72 ; XXXIV., 482 ; Century, XLllL, 605-626. I. The question is important. A. The demand for woman suffrage has been called the most insist- ent of the century. B. In many States the suffrage has been granted. i. Full suffrage. 2. Municipal. 3. Local. 4. School. C. Many who oppose any further extension believe it inevitable. WOMAN SUFFRAGE 9 II. It is generally admitted. A. That by the de- mand for woman suffrage, two things are implied. 1. That women be given the privilege of voting on the same terms with men. 2. That they be given the privilege of holding office on the same terms. III. The question whether these demands should be granted seems to present four main issues. A. Have women a right to the suffrage? B. Is it expedient for them that they have it? C. Is it expedient for the State? D. Do the results of the suffrage for women argue for its extension? Brief for the Affirmative References : J. S. Mill, The Suhjection of Women ; J. S. Mill, Considerations on Representative Government, Chap. 8 ; Mary Putnam Jacobi, " Common Sense " applied to Woman Suffrage; Mrs. Ashton Dilke, Women's Suffrage; H. and M. G. Fawcett, Essays and Lectures, pp. 230-291 ; G. W. Curtis, Orations afid Addresses, I., 18 1 ; T. W. Higginson, Common Sense about Women ; Frank Parsons, The Story of New Zealand, Chap. 48; Congressional Record, Vol. 16, Pt. 2, pp. 1322-1325 ; Vol. 18, Pt. J., pp. 34-38, 987-1002 \ Senate Reports, ^.'jth. Cong., ist Sess., No. 686 ; 48th Cong., ist Sess., No. 399; 49th Cong., ist Sess., No. 70; 50th Cong., 2nd Sess., No. 2543 ; 51st Cong., ist Sess., No. 1576 ; S^nd Cong., 2nd Sess., No. 1143 ; 54th Cong., ist Sess., No. 787 ; Senate Miscellaneous Documents, a,i\!s\ Cong., ist Sess., No. 74 ; Senate Documents, S4th Cong., ist Sess., No. 157 ; House Reports, 41st Cong., 3d Sess., No. 22, Pt. 2 ; 48th Cong., ist Sess., No. 1330, Views of the Minority; 51st Cong., ist Sess., No. 2254; North American Review, Vol. 129, p. 413; Vol. 137, p. 495 ; Vol. 139, p. 405 ; Vol. 143, p. 371 ; Vol. 166, p. 142 ; Vol. 177, p. 243; Vol. 178, p. 362 ; Vol. 179, p. 30; Forum, II., 351 ; III., 131 ; XVII., 413; XVIII., 406, 609; XXIII., lO POLITICS 173; Arena, II., 752; V., 68; XL, 353 J XVI., 570, 74S ; Lippincotf s Magazine, LXIV., 411 ; Fortnightly Review, XIII., 719; XVII., 204; LI., 555; LIL, 123; Nineteenth Century, XIV., 285 ; XIX., 740 ; XXVL, 86 ; LVL, 105 ; Contemporary Review, IV., 307; XX., 360; XLVIL, 418; LVIIL, 830; LXXXIIL, 653 ; Westminster Review, Vol. 55, p. 289 ; Vol. 133, p. 231 ; Vol. 135, p. 364; Vol. 143, p. 35 ; Vol. 148, P- 357; Vol. 149, pp. 147) 279; Vol. 160, p. 539; Inde- pendent, LVL, 1309; Reports and Publications of the Na- tional American and the New York State Woman Suffrage Associations. I. Women have a right to the suffrage. A. They have a natural right. i. All just government is founded on the consent of the governed. 2. Women do not consent to be governed by men. B. They have a right based on fundamental American principles. I. All men are created equal. 2. All should partici- pate in the affairs of State. C. They have a right derived from the payment of taxes. i. Taxation with- out representation is tyranny. D. They have a con- stitutional right. I. The suffrage is a privilege of citizenship. 2. Women are citizens. 3. The privi- leges and immunities of citizens cannot be abridged by any State. 4. The right to life, liberty, and property guaranteed by the Constitution includes the right to pro- tection. E. They have a legal right. i. Women may vote at common law. n. It is expedient for women that they have the suffrage. A. The suffrage would improve their social position. i. Women would be placed on a plane of equality with men. x. They would exercise equal power. 2. They would compel greater respect. X. Their opinions would count 3. Their minds would WOMAN SUFFRAGE II be elevated and broadened, x. By the study of polit- ical questions. 4. The argument that women would become less womanly by participating in the suffrage is unsound. x. They would be affected by contact with men at the polls no more than in other public places. B. The suffrage would improve the political condition of women. i. Women suffer precisely as men from corrupt and inefficient government. 2. Women suffer from many inequahties and discriminations. w. In re- gard to the custody of children, x. The division of property, y. Taxation, z. The protection of the per- son. 3. The ballot is the only efficient method of securing political rights. 4. The argument that women are well represented by men is unsound, x. Women have different interests, tastes, and occupations, y. Many have neither husband nor brothers. C. The suffrage would improve the economic condition of women. 1. Newoccupations would be opened to them. 2. They would receive higher wages. D. The statement that women do not wish the ballot is untrue. I. A large and constantly increasing number have said they did. 2. The fact that some are apathetic is no reason for withholding the right from others, x. Many men do l^t votl. pin. It would be expedient for the State for women to have the suffrage. A. Women are well qualified for the suffrage. i. Morally, x. They have higher moral standards than men. y. Fewer women are crimi- nals. 2. Women are well qualified mentally, x. They have shown great proficiency in many directions, i'. In government. 2'. In scholarship. 3'. In the professions. •^^"^ business. 5'. In art and literature, y. Any dif- ference in achievement has been due to differences 12 POLITICS in position and habits, z. No contention is made that the sufTrage is based on intellectual qualifications. 3. Women are well qualified physically, x. They have more than enough strength for the duties of voting and holding office, y. The suffrage is not based on physical strength.- s. The argument that women could not en- force the decree registered by the ballot is unsound, i'. Division of political opinion by sex is wholly unlikely. B. The participation of women would improve political Hfe. I. The influence of the home would be increased. 2. A strong conservative element would be introduced. 3. More orderly elections would be insured. 4. New ability would be secured. C. The argument that the home would suffer from the participation of women in politics is unsound. i. Little time is necessary for voting. 2. The family cannot be a unit in opinion as in affection. 3. Differences of opinion will not be in- creased by the opportunity to express them. D. The argument that women will not vote is disproved by facts. I. Women have voted in even a greater proportion than men. rV. The results of the suffrage for women argue for its extension. A. Full suffrage where it has been granted has been successful. i. Better candidates^ have been nominated. 2. Desirable legislation has been effected. 3. Elections have been more orderly. 4. The best women have voted. J. The character of women has not changed. 6. Domestic harmony and the influence of the home have not decreased. 7. In- terest in the study of political questions has been aroused. 8. The right is now regarded as a matter of course. B. Municipal suffrage has been successful. i. Better city governments have been secured. 2. Undesirable \VOMAN SUFFRAGE 13 classes have not been influential. C. School and local suffrage has been successful. i. Better directors have been obtained. 2. The pay of women teachers has been increased. D. An extension of the suffrage has generally followed its partial adoption. Brief for the Negative References : Helen K. Johnson, Woman and the Republic; Horace Bushnell, Women's Suffrage; the Reform against Nature ; Carlos White, Ecce Femina ; Goldwin Smith, Essays on Questions of the Day, pp. 183-218; H. L. Hart, Women's Suffrage and National Danger ; Elizabeth McCracken, The Women of America^ Chap. 4 ; Why Women do not Want the Ballot (2 vols.) ; Francis Parkman, Some of the Reasons against Woman Suffrage; Congressional Record, Vol. 18, Pt. i, pp. 980-983, 986-987 ; Senate Reports, 45th Cong., 2nd Sess., No. 523 ; 47th Cong., ist Sess., No. 686, Pt. 2 ; 48th Cong., ist Sfess., No. 399, Pt. 2 ; 49th Cong., ist Sess., No. 70, Pt. 2; 50th Cong., 2nd Sess., No. 2543, Pt. 2; 52nd Cong., 2nd Sess., No. 1 143, Views of the Minority; Senate Miscel- laneous Documents, S2nd Cong., 2nd Sess., No. 28; 53d Cong., 2nd Sess., No. 121; House Reports, 41st Cong., 3d Sess., No. 22; 48th Cong., ist Sess., No. 1330; 51st Cong., 1st Sess., No. 2254, Pt. 2; Minor \. Happersett, 21 Wallace, 162; North American Review, Vol. 109, p. 556; Vol. 129, p. 303 ; Vol. 130, p. 16 ; Vol. 137, p. 137 ; Vol. 143, p. 290 ; Vol. 177, pp. Ill, 544, 837; Vol. 178, p. 103; Forum, II., 439; IV., i; VIII., 515; XVII., /^o6; Atlantic Monthly, LXV., 310 ; XCII., 289; American Law Review, XXXI., 404 ; Arena, II., 175 ; XI., 363 ; Popular Science Monthly, I., 82 ; v., 427 ; XXXIII., 721 ; LI., 222, 341 ; New Englander,Xllll., 193; Nation, V., 152; X., 205; XII., 270; XVIII., 311; XXII., 20s; XXIX., 286; XXXVI., 204; XLIV., 310; Out- look, LV., 789, 964 ; LXIV, 573 ; LXV, 43° 5 LXVIIL, 711 ; LXXIIL, 418; LXXV., 735, 997; Fortnightly Review, lA., 14 POLITICS 568 ; LIV., 833 ; Nineteenth Centicry, XIX., 561 ; XXV., 781 ; XXVI., 347; XXX., 79; XLVIL, 839; Lippincotfs Magazine, LXIIL, 699 ; Reports and Publications of the Massachusetts, New York, and Illinois Associations opposed to the extension of Suffrage to Women. I. Women have no right to the suffrage. A. They have no natural right. i. The suffrage is a privilege, not a right, and is granted solely for questions of ex- pediency. 2. Few governments have given any gen- eral right of suffrage. B. Women have no right founded on fundamental American principles. i. In none of the thirteen original States at the time of the adoption of the Constitution could all citizens vote. C. Women have no right derived from the payment of taxes. I. Many men who vote pay no taxes. 2. Many who pay taxes may not vote. D. Women have no constitutional right. i. The privileges and immunities guaranteed by the Fourteenth Amendment do not include the right to vote. x. The Fourteenth Amendment created no new rights, y. It simply guar- anteed, against State action, rights protected by the original Constitution and Amendments. E. If the State may regulate the right of suffrage, as in the case of infants and idiots, it may entirely withhold it. i. The power to regulate is the power to withhold. n. It would be inexpedient for women that they have the suffrage. A. The suffrage would impair the social position of women. i. Their elevating and refining influence would be lessened. 2. They would be made less womanly. 3. They would receive less respect from men. 4. As the influence of the inno- cent and intelligent increased, that of the ignorant and vicious would be augmented. B. The suffrage would WOMAN SUFFRAGE IS not improve the political condition of women. X. It would secure no rights or privileges which they cannot otherwise obtain. x. Women are well represented by men. i'. The household is a unit, y- The ballot is not the only element of power, i'. Indirect influence is potent, z. All the great advances made by women have been without the ballot. 2. The argument that the suffrage would relieve women from unjust dis- crimination is unsound, x. Women are not discrimi- nated against, y. In many respects they are favored, i'. In legislation. 2'. By courts and juries, z. Equal- ity does not imply identity of rights. C. The suffrage would not improve the industrial condition of women. 1. Women are kept from certain occupations by con- ventions which the suffrage would not affect. 2. The wages of women are governed by economic laws. D. Women as a class do not wish the ballot. i. When they have had the opportunity, they have said so. 2. The demand for the suffrage is that of a few zealots. III. It would be inexpedient for the State for women to have the suffrage. A. Women are unfitted for the suffrage. i. Physically, x. Those who make the laws must be able to execute them. i'. Back of the ballot is the bullet. /. Women could neither enforce the laws nor compel men to do so. i'. A majority of men would not submit to a minority of men and non- combatants. 2. Women are unfitted for the suffrage mentally. w. They are chiefly moved by personal pre- dilections. X. They are emotipnal, illogical, and have little judgment, y. They have no interest in public affairs, z. They have not been successful in public positions. 3. Women are morally unfitted for the suffrage, x. They are easily moved by improper influ- 1 6 POLITICS ences. y. Their votes would largely be dictated by others, i'. Politicians. 2'. Relatives. 3'. Spiritual ad- visers. B. The participation of women in the suffrage would diminish the influence of the home, the bulwark of the State. i. Families would be internally divided. 2. Domestic difficulties and divorce would be increased. 3. Household duties would be neglected. 4. The desire for maternity would be less potent. C The partici- pation of women in the suffrage would increase the evil elements in political life. i. The lower class in cities would use the ballot. 2. The better class would not. IV. The results of the suffrage for women do not argue for its extension. A. Women, having obtained the right, have shown little interest. i. Comparatively few have registered or voted. 2. Almost none have attended the primaries. B. No appreciable good has been accomplished. i. Good candidates have not been generally supported. 2. Legislation has been little affected. 3. Criminal practices and violations of the law have not been checked, x. Social impurity. y. Gambling, s. Liquor-selling. C. Much real harm has been done. i. Women have been inefficient in public office. 2. Many have become politicians of the worst sort. 3. Votes have been easy to secure. 4. The influence of the better class has been outweighed by that of the worse. Ill NEGRO SUFFRAGE Proposition: The Fifteenth Amendment to the Constitution should be repealed. Introduction • General References : A. P. C. GrifBn (Library of Con- gress), Select List of References on the Negro Question ; W. E. B. Dii Bois, Select Bibliography of the American Negro ; Race Problems of the South (Bib.) ; G. W. Williams, History of the Negro Race in America (2 vols.) ; W. D. P. Bliss, Encyclopedia of Social Reform, p. 927 ; J. J. Lalor, Cyclopcedia of Political Science, III., 822; Etuyclopedia Americana, XI. (Negro in America) ; Twelfth Census, I., cxi-cxxiii ; cxcviii-ccvi ; II., xcvii-cxxiii ; W. E. B. Du Bois, The Philadelphia Negro ; " The Negroes of St. Louis," in Publications of the American Statistical Association, VIII., 203 ; Johns Hopkins University Studies in Historical and Political Science, VIII., 347 ; XL, 99 ; Bulletin of Bureau of Labor, Nos. 10, 14, 22, 32, 35, 37, 48 ; " History of Negro Suffrage in the South," in Political Science Quarterly, IX., 671 ; "Negro Suffrage in the South," in Outlook, LXXIV., 399 ; Forum, IX., 78, 266 ; Ufiited States V. Reese, 92 United States Reports, 214; Proceedings and Occasional Papers of the John F. Slater Fund; Publica- tions of Atlanta University. I. The question is important. A. The negro problem has been called the greatest social problem 1 8 POLITICS of the century. B. Of its many phases, that sug- gested by a repeal of the Fifteenth Amendment seems particularly vital. i. Many regard the Amendment as the essential feature of the situation. 2. By many its wisdom is doubted. 3. In a number of States it has practically been nullified. II. It is generally admitted. A. That under the Fifteenth Amendment the right of citizens to vote can- not be abridged because of race or color. B. That a repeal of the Amendment would remit the whole ques- tion of quahfications for suffrage to the States. III. The question whether this is wise seems to pre- sent three main issues. A. Is the Fifteenth Amend- ment based on sound theory? B. Has it worked well in practice? C. Would a repeal bring good results? Brief for the Affirmative References : P. A. Bruce, The Plantation Negro as a Free- man ; T. N. Page, The Negro : The Southerner' s Problem ; N. S. Shaler, The Neighbor, Chap. 7 ; E. G. Murphy, The Present South, Chap. 6 ; Congressional Globe, 40th Cong., 3d Sess., Pt. 2, pp. 995-996, 1010-1012, 1309-1310; Pt. 3, pp. 1 630-1 63 1 ; Annals of American Academy of Political and Social Science, XV., 493; XVIII., 95-118; Publications of American Economic Association, Vol. 11, Nos . i- 3 ; 3d Ser., Vol. 3, No. 2; Forum, I., 126; V., 383; VI., 144, 586 VIII., 365; XIV., 797; XVI., 176; XXVI., 578; XXX. 215 ; XXXI., 225 ; XXXII., 460, 671 ; North American Re view, Vol 143, p. 307 ; Vol. 153, p. 641 ; Vol. 154, p. 401 Vol. 170, p. 785; Vol. 172, p. 279; Vol. 175, p. 534; Vol 177, PP- 509, 837; Vol. 179, p. 402; Atlantic Monthly, LXXXVII., 145, 473, 634; LXXXVIIL, 121, 289, 437; Cen tury, XXIX., 909; LXL, 278; Aretia, II., 39, 132, 385 NEGRO SUFFRAGE 19 XXL, 438, 446; XXIX., 495, 611; XXXI., 481; Popular Science Monthly, XXVI., 39 ; LV., 177 ; American Journal of Sociology, VI., 204, 248 ; McClure's Magazine, XXII., 548, 619 ; XXIII., 96; Journal of Social Science, XXXVII., 28; Gunton's Magazine, XXVII., 453 ; American Review of Re- views, XXV., 716; Independent, LI., 1535, 1687; LIL, 1953- 1957 ; LIV., 2224 ; LV., 424 ; Outlook, LXVIIL, 711 ; LXIX, 810. I. The Fifteenth Amendment is not based on sound theory. A. The suffrage is a privilege to be in- trusted only to those who will use it wisely. i. It is not a natural right. 2. It does not grow out of citi- zenship. 3. It is granted solely for political expedi- ency. B. The negro is incapable of exercising the suffrage wisely. i. He ispolitically incapable, m^. He has no political aptitude. x. No conception of the meaning of the ballot, of issues, or of the functions of officers, y. No abiding convictions, s. No real wish to vote. 2. He is intellectually incapable, x. He is ignorant, y. Illiterate. 3. He is morally incapable. w.. He is corruptible, x. Licentious, y. Untruthful. z. Thieving. 4. He is economically incapable, x. He cannot manage his own affairs, y. He has not the steadying force of property. C. A strong presump- tion exists against the wisdom of the Amendment. 1. It was adopted without sufficient consideration. 2. By questionable methods. 3. To perpetuate the Repubhcan party. IL The Amendment has worked badly in practice. A. The effect on the negro has been bad. i. Indus- trially. X. His mind has been withdrawn from thrift to politics. 2. Morally, x. His crime has increased. 3. Socially, x. Race hatred has taken the place of 20 POLITICS kindly interest. 4. The statement that the negro has gained pohtically is untrue, x. He has been the tool of parties and demagogues, y. In many States he has been disfranchised, z. In others he has only nominal political rights. B. The effect of the Amendment on the South has been bad. I. Politically, x. It caused bad State government. l'. Exorbitant taxes. 2'. Reck- less expenditures. 3'. Maladministration of the law. y.\t gave rise to corrupt political methods. l'. Force. 2'. Fraud. 3'. Bribery. 4'. Intimidation. 5'. Ballot-box stuffing, z. It has compelled bad party policy. 1'. The disregard of national, State, and local issues. 2'. Division for and against the negro. 2. The effect on the South has been bad socially, x. Bitter race antagonism has re- sulted. 3. The effect on the South has been bad mor- ally. X. Open and flagrant violation of the law has been condoned, i'. To redress personal wrongs. 2'. To secure political rights. C. The effect of the Amendment on the nation has been bad. i. Sectionalism and strife have been engendered. 2. The South has secured undue representation. III. A repeal of the Amendment would bring good results. A. The negro would be benefited. I. Intellectually, x. His desire for knowledge would be increased. 2. Socially, x. His relations with the white race would be improved. 3. Industrially. x. His attention would be turned from politics to industry. 4. The argument that the negro would be injured politi- cally is unsound, x. He would lose nothing that he now has. 5. The argument that the ballot is neces- sary to protect the negro's civil rights is unsound. X. It is not so in the case of women and minors. y. There is no wish to oppress the negro, i'. The NEGRO SUFFRAGE 21 harsh legislation after the War was the result of igno- rance and resentment. B. The South would be ben- efited by a repeal of the Amendment. i. Politically. X. Politics would be purged of ignorant and corrupt electors, y. Parties would divide on broader issues. z. The danger of negro domination would be over. 2. The South would be benefited socially, x. The striving for social equality would cease, y. Wherever negroes have been excluded from voting a better feeling has arisen. C. The nation would be benefited by a repeal of the Amendment. i. The greatest burden on free institutions would be removed. 2. Represen- tation in Congress and in the Electoral College would be rectified. Brief for the Negative References : Booker Washington, The Future of the Ameri- can Negro ; Booker Washington and others, The Negro Problem ; G. W. Cable, The Negro Question ; G. W. Cable, The Silent South; W. H. Thomas, The American Negro; W. E. B. Du Bois, TTie Souls of Black Folks ; C. B. Spahr, America's Working People, Chap, s ; American Negro Academy, Occa- sional Papers, No. 6 ; Congressional Globe, 40th Cong., 3d Sess., Ft. 2, pp. 899-904, 978-986, 1004-1005 ; North Ameri- can Revieiv, Vol. 128, pp. 161, 225-283; Vol. 168, p. 285; Vol. 171, p. 221 ; Vol. 176, p. 657 ; Forum, I., 562 ; V., 627 ; VI., 392 ; VII., 80, 143 ; X., 335 ; XXVI., 434; XXVIL, 570 ; XXIX., 720 ; XXX., 693 ; XXXIL, 116 ; XXXVI., 289 ; At- lantic Monthly, LXXVIIL, 441 ; LXXXIV., 577 ; LXXXVII., 817; LXXXVIII., 433 ; XC, 65, 289; XCIV, 72; Popular Science Monthly, LV., 317; LVII., 29, 147 ; Arena, II., 560, 633; XXL, 426, 455 ; XXIV., 449 ; XXXII., 141; Century, XXIX., 409 ; LIX., 47 2 ; American Review of Reviews, XXIV., 649 ; XXVIII., 321 ; McClure's Magazine, XXII., 259 ; Scrib- ner's Magazine, XXXVI., 15 ; International Mo?ithly, I., 340 ; 22 POLITICS Nineteenth Century, XLVl., 459; LIV., 495 ; World's Work, II., 848 ; VI., 3731 ; Outlook, LX., 1059 ; LXI., 486, 711, 802 ; LXIL, 490; LXI v., 14, 56s; LXXI., 163; LXXIII.,293, 607, 619, 950; LXXVII., 689; Independent, LI., 3306; LV., 400, 2021 ; Nation, LXVI., 398 ; LXIX., 384 ; LXXVI., 204, 324, 346; LXXVII., 71, 182, 315, 400, 518; Publications of the American Negro Academy. I. The Fifteenth Amendment is based on sound theory. A. A broad suffrage is desirable. i. It is the only sure method of protecting rights, x. No class can be trusted to care for the rights of another. 2. It is the only guarantee for domestic peace, x. A class without stake in the government is a cause for alarm. 3. It has great educational value, x. The intelligence of the masses is raised, y. Responsibility is taught. 4. It fulfils the political ideals of the nation. X. The belief that taxation without representation is tyranny, y. The declaration that all men are created equal, z. The doctrine that government rests on the consent of* the governed. B. Disfranchisement be- cause of race or color is particularly objectionable. I. It is inconsistent, x. Citizenship is conferred with- out regard to race. 2. It is harmful, x. The State is deprived of many who are best 'qualified to serve it. i'. Color is no indication of character, ability, or patriot- ism. 4. It is illogical, x. It is based on inherited, unalterable, and unessential characteristics. C. Dis- franchisement because of race or color should be pro- hibited by the Constitution. i. In no other way can the suffrage be secured to the negro. D. The argu- ment that the Amendment is wrong because the negro is not qualified to vote, is unsound. i. Qualifications for the suffrage are not forbidden by the Amendment. NEGRO SUFFRAGE 23 II. The Amendment has worked well in practice. A. The negro has been benefited. I. Politically. X. Intelligent voters have been developed, y. Wise leaders. 2. The negro has been benefited industri- ally, w. He has become an important commercial factor. ^. He has acquired homesteads. ^. Has gained mechanical skill, z. He pays a large amount of taxes. 3. The negro has been benefited intellectu- ally. X. Schools and colleges have increased in number and in attendance, y. Illiteracy and ignorance have been greatly reduced. 4. The negro has been bene- fited morally, x. Marriage relations have been im- proved, y. Crimes of violence are no more common than in the case of whites. B. The South has been benefited by the Amendment. i. It has been com- pelled to give heed to the negro, x. To develop his political reason, y. To educate him. 2. Whatever the South may have suffered has been due to its own errors, x. To its failure to assist and co-operate with the negro after the War. C. The nation has been benefited by the Amendment. i. A great duty has been successfully performed. III. A repeal of the Amendment would bring bad results. A. The negro would suffer. i. Politi- cally. X. He would be disfranchised in nearly all South- ern States, i'. The recent history of the South shows this, jv- His civil rights would be invaded, i'. The legislation of Southern States following the War shows this. 2. The negro would suffer socially, x. He would lose his self-esteem, y. The recognition of others. z. All incentive to better his condition. 3. The negro would suffer intellectually, x. His educational status would be lowered, i'. In Southern States whose consti- 24 POLITICS tutions disfranchise the negro, school terms have been shortened. 2'. Appropriations have been cut down. 4. The negro would suffer economically, x. The whites would absolutely control his labor. B. The South would suffer from a repeal of the Amend- ment. I. A dangerous incubus would threaten so- ciety. C. The nation would suffer. i. The nation would be recreant to a trust. 2. Government by the people would receive its greatest check. IV AN EDUCATIONAL QUALIFICATION FOR SUFFRAGE Proposition: The suffrage should be restricted by an educational qualification. Introduction General References : A. B. Hart, Handbook of History, Diplomacy, and Government, p. 228 (Bib.) ; "History of Suf- frage Legislation in the United States," in Chautauquan, XXII., 28 ; " Educational Qualifications for the Suffrage," in Political Science Quarterly, XIII. , 495 ; " Illiteracy of the Voting Population of the United States," in Report of the Commissioner of Education, ig02. Vol. I., Chap. 18 ; Twelfth Census, I., cxcviii-ccxxi, 907-1006; II., xcvii-cxxiii, 411- 501 ; J. J. Lalor, Cyclopcedia of Political Science, III., 822 ; New American Supplement to the Encyclopcedia Britannica, II., 1130 ; W. D. P. Bliss, Encyclopedia of Social Reform, p. 707 ; World Almanac (Qualifications for Voting) ; J. S. Mill, Con- siderations on Represe?itative Government, Chap. 8 ; G. Brad- ford, The Lesson of Popular Government, I., Chap, i ; Harper's Magazine, XCIV., 207 ; American Review of Reviews, XXV., 716. I. The question is important. A. Because of the adoption in recent years of educational qualifica- tions by several States. B. Because of the statistics of foreign immigration. C. Because of the defec- tive administration of many cities. 26 POLITICS II. It is generally admitted. A. That in the great majority of States what is popularly, although not exactly, known as universal suffrage prevails. B. That the proposal of those who advocate an edu- cational qualification is as follows: I. Voters, in addition to satisfying other requirements, must' be able to read, write, and to understand a few sentences of the English language. m. The question whether this change is wise seems to present three main issues. A. Is the suffrage a right? B. Is universal suffrage politically ex- pedient? C. Is an educational qualification a wise method of restriction? Brief for the Affirmative References : W. E. H. Lecky, Democracy and Liberty, I., 58-98 ; F. J. Goodnow, Municipal Problems, Chap. 7 ; N. S. Shaler, The Citizen^ pp. 206-215 ; R. M. Atchison, Un-Amer- ican Immigration, Chap. 4 ; North American Review, Vol. 127, p. I ; Vol. 136, p. 119 ; Vol. 137, p. 413 ; Vol. 139, p. 492 ; Vol. 144, p. 298 ; Vol. 156, p. 27 ; Vol. 158, p. 203; Vol. 168, p. 285; Vol. 175, p. 534; Vol. 177, p. 837; Forum, IX., 117; XL, 29; XIV., 159; XXVL, 393; XXXIL, 460, 686; Annals of American Academy of Political and Social Science, XV., 493; XIX., 408; Educational Review, XII., 120; XXVIII., 105; Popular Science Monthly, XXVI., 194; Cen- tury, XXXVII., 621; LXVII., 474; American Revieio of Reviews, XXIV., 649 ; American Magazine of Civics, VIII., 64; Education, 'KY^., 30; Social Economist, IV., 334; Inde- pendent, LI., 3226 ; LIL, 174; Outlook, LXIV., 434; LXVII., 329; LXVIIL, 711; LXXIIL, 622; Nation, VIII., 125; Public Opinion, XXXIL, 165. I. The suffrage is not a right. A. It is a priv- ilege granted by the State to those most likely to use ^N EDUCATIONAL QUALIFICATION FOR SUFFRAGe7 2/ it for the public good. B. The arguments attempt- ing to prove that the suffrage is a right are unsound.- I. It is not, as contended, a natural right, x. No one can be deprived of a natural right, y. The suffrage is not generally granted to women, minors, paupers, the insane, criminals, or unnaturalized aliens. 2. It is not a right which can be founded on fundamental American principles, x. In none of the thirteen original States at the time of the adoption of the Constitution could all citizens vote. 3. It is not a constitutional right. X. The privileges and immunities guaranteed by the Fourteenth Amendment do not include the right to vote. 4. It is not a right which can be based on the payment of taxes, x. Women and minors who pay taxes may not vote. H. Universal suffrage is politically inexpedient. A. Many to whom the ballot is given are unfitted to use it wisely. I. Many are ignorant. 2. Il- literate. 3. Vicious. 4. Venal. 5. Blindly sub- servient. 6. Wholly unacquainted with American institutions and principles of government. B. The participation of these classes in the suffrage has caused grave political evils. i. The indifference of the bet- ter classes. 2. Corrupt elections. 3. Untrustworthy officials. 4. Extravagant and inefficient administra- tions. 5. The strength of bosses, demagogues, and machines. 6. Too many and unwise laws. C. The arguments brought forward to prove the expediency of universal suffrage are unsound. i. The contention that the suffrage is necessary for the protection of rights is unsound, x. The surest protection for the rights of all is a government by the most virtuous .and the most enlightened. 2. The contention that the 28 POLITICS suffrage has great educational value is misleading. X. It has no such value for those who do not appreciate its importance, and who wilfully misuse it. m. An educational qualification is a wise method of restric,^on^^^^ t^iJ^ ^%^3^^l^kl^^'^' P""*^'?'^^- I. The ititefiigent exerSis'eor mesu^mgejis impossible without the ability to read and write, x. In no other way can the voter understand past experience or pres- ent issues. 2. An edac|tional qualification would exclude the classes wKoseinfluence is most inimical to good government, x. Those who are easiest in- fluenced by improper methods, j/. Those who, al- though well-meaning, are incapable of sound judgment. 3. It would help to eradicate the most flagrant political evils, v. Corruption. zv. Machine politics. X. Bad municipal government, j/. Incompetent offi- cials, z. Ill-considered legislation. B. An educa- tional qualification has worked well in practice. i. In New England States. 2. In the South. C. An educational qualification is preferable to any other method of restriction. i. A property qualification, even if desirable, is impracticable. Brief for the Negative References : C. W. Eliot, American Contributions to Civi- lization, pp. 21-30 ; North American Review, Vol. 103, p. 241 ; Forum, I., 209; III., 170; Atlantic Monthly, XLIII., 71; LXXVIII.,441; Popular Science Monthly, yiXNl., 194; Inter- national Review, VI., 2 ; Cosmopolitan, IX., 508 ; XIV., 476; Westminster Review, Vol.. 137, p. 680 ; Outlook, LXVIL, 648 ; Nation, III., 371 ; Open Court, VIII., 3959. I. The suffrage is a right. A. It is a natural right. I. All just government is founded on the AN EDUCATIONAL QUALIFICATION FOR SUFFRAGE 29 K_ consent of the governed. B; It is a right which may be based upc5.tC:fundamentarAmerican principles. 1. On the declaration thajt all men are created equal. 2. On the doctrine 'that all should participate in the affairs of state. C. It is a right derived from the payment of taxes. i. Taxation without representa- tion is tyranny. D. _ It is a constitutional right. I. The suffrage is a privilege of citizenship. 2. The privileges and immunities of citizens may not be abridged by any State. 3. The right to life, liberty, and property, guaranteed by the Constitution, includes the right to protection. II. Universal suffrage is politically expedient. A. It has great educational value. i. It raises the intelligence of the masses. 2. Teaches responsibil- ity. 3. Increases the interest of the State in educa- tion. B. It is the only efficient protection of rights. I. Every class best knows its own interests. 2. No class can be trusted to care for the rights of another. C. It is the surest guarantee of domestic tranquillity. I. The deprivation of all stake in the government leads to agitation, distrust, and discontent. D. It is just. I. To impose burdens and withhold all political rights is unfair. E. It increases the likelihood of a right solution of public questions. i. Political wis- dom is gained by the addition of every class consulted. F. It has worked well in practice. i. It has made the nation what it is to-day. G. The arguments brought forward to prove that universal suffrage is inexpedient are unsound. i. Most of the evils of American politics are due to other causes than a broad suffrage. w. To corrupt leadership. x. To the influ- ence of corporations and the money-power, j/. To the 30 POLITICS indifference of the better classes, z. To bad methods and machinery. 2. Such evils as exist in the exer- cise of the suffrage can be remedied in less danger- ous ways. X. By better laws respecting bribery and corruption, y. By stricter naturalization laws. z. By better residence and registration qualifications. m. An educational qualification is particularly ob- jectionable. A. It is wrong in theory. i. Educa- tion furnishes no index to virtue or public interest. 2. No guarantee for honesty of purpose or a sense of duty. 3. Participation in the suffrage calls prima- rily for good intentions. B. An educational quali- fication would work great harm in practice. i. Power would be taken from the hands of those least able to care for themselves, x. The ignorant have greater need for the ballot than the wise. C. An educa- tional qualification would in no way affect existing political evils. i. Bosses and machines would con- tinue to be as powerful. 2. The influence of money and corporations would not be lessened. 3. The in- difference of the better classes would not be removed. D. An educational qualification would represent dis- tinctly a backward step. i. Practically all qualifica- tions for the suffrage that existed at the beginning of the government have disappeared. V THE RESTRICTION OF IMMIGRATION Proposition: Immigration should be further re- stricted by an illiteracy test. Introduction General References : A. P. C. Griffin (Library of Congress), List of Books on Jm?nigration ; R. Mayo-Smith, Emigration and Immigration (Bib.) ; United States Statutes at Large, XXXIL, Pt. I, p. 1213 ; Department of Commerce and Labor, Immigration Laws and Regulations ; " Immigration into the United States," in Monthly Summary of Commerce and Finance, June, 1903 ; Annual Reports of the Commissioner-General of Immigration ; Twelfth Census, I., II. ; W. D. P. Bliss, Ency- clopedia of Social Reform, pp. 706, 707 ; J. J. Lalor, Cyclopczdia of Political Science, II., 85 ; New International Encyclopedia, IX., 830; Report of the Industrial Commission, XV.; XIX., 957-1030 ; Senate Reports, 52nd Cong., 2nd Sess., No. 1333 ; 55th Cong., ist Sess., No. 13 ; 57th Cong., ist Sess., No. 2119 ; Senate Documents, 57th Cong., 2nd Sess., No. 62 ; House Reports, 50th Cong., 2nd Sess., No. 3792; sist Cong., 2nd Sess., No. 3472; S2nd Cong., ist Sess., No. 2090; House Executive Documents, 52nd Cong., ist Sess., No. 235, Pts. i, 2 ; Great Britain, Report of the Royal Commission on Alien Ihimigration ; Special Consular Reports (1891), II., 211 ; New York State Bureau of Labor Statistics, Sixteenth Annual Report (1898), pp. 953-1040; Congressional Record, Vols. 22, 23, 24, 28, 29, 31, 36 (see Indexes). 30 POLITICS indifference of the better classes, z. To bad methods and machinery. 2. Such evils as exist in the exer- cise of the suffrage can be remedied in less danger- ous ways. X. By better laws respecting bribery and corruption, y. By stricter naturalization laws. z. By better residence and registration qualifications. m. An educational qualification is particularly ob- jectionable. A. It is wrong in theory. i. Educa- tion furnishes no index to virtue or public interest. 2. No guarantee for honesty of purpose or a sense of duty. 3. Participation in the suffrage calls prima- rily for good intentions. B. An educational quali- fication would work great harm in practice. I. Power would be taken from the hands of those least able to care for themselves, x. The ignorant have greater need for the ballot than the wise. C. An educa- tional qualification would in no way affect existing political evils. i. Bosses and machines would con- tinue to be as powerful. 2. The influence of money and corporations would not be lessened. 3. The in- difference of the better classes would not be removed. D. An educational qualification would represent dis- tinctly a backward step. i. Practically all qualifica- tions for the suffrage that existed at the beginning of the government have disappeared. V THE RESTRICTION OF IMMIGRATION Proposition: Immigration should be further re- stricted by an illiteracy test. Introduction General References : A. P. C. Griffin (Library of Congress), List of Books on Imtnigration ; R. Mayo-Smith, Emigration and Immigration (Bib.) ; United States Statutes at Large, XXXIL, Pt. I, p. 1213 ; Department of Commerce and Labor, Immigration Laws and Regulations ; " Immigration into the United States," in Monthly Summary of Commerce and Finance, June, 1903 ; Annual Reports of the Commissioner-General of Immigration ; Twelfth Census, I., II. ; W. D. P. Bliss, Ency- clopedia of Social Reform, pp. 706, 707 ; J. J. Lalor, Cyclopcedia of Political Science, II., 85 ; New Internatiotial Encyclopcedia, IX., 830; Report of the Industrial Commission, XV.; XIX., 957-1030; Senate Reports, 52nd Cong., 2nd Sess., No. 1333; 55th Cong., ist Sess., No. 13 ; 57th Cong., ist Sess., No. 2119 ; Senate Documents, S7th Cong., 2nd Sess., No. 62 ; House Reports, 50th Cong., 2nd Sess., No. 3792; 51st Cong., 2nd Sess., No. 3472; 52nd Cong., ist Sess., No. 2090; House Executive Documents, 52nd Cong., ist Sess., No. 235, Pts. i, 2 ; Great Britain, Report of the Royal Commission on Alien Immigration ; Special Consular Reports (1891), II., 211 ; New York State Bureau of Labor Statistics, Sixteenth Annual Report (1898), pp. 953-1040; Congressional Record, Vols. 22, 23, 24, 28, 29, 31, 36 (see Indexes). 32 ' POLITICS I. The question is important. A. The general subject of immigration is important. I. For good or ill it vitally affects the political, social, and economic- welfare of the nation. B. The most interesting as- pect of the subject probably is whether an illiteracy test should be adopted. i. Such a test passed both houses of Congress in 1897. 2. It has since been presented several times. 3. It is urged by the Immi- gration Restriction League and by many statesmen. n. It is generally admitted. A. That the restric- tive measures now in force are as follows: i. Idiots, the insane, paupers, diseased persons, convicts, anarch- ists, polygamists, women for immoral purposes, assisted aliens, and contract laborers are rejected. 2. A head tax of two dollars is imposed. B. That the proposed change is as follows : i . In addition to satisfying other requirements, persons between the ages of fifteen and fifty, or approximately, must be able to read or write a few sentences of some language. m. The question whether this change should be adopted seems to present four main issues : A. Is further restriction of immigration desirable for politi- cal reasons? B. Is it desirable for social reasons? C. Is it desirable for economic reasons? D. Is the illiteracy test a wise one? Brief for the Affirmative References : F. A. Walker, Discussions in Economics and Statistics, II., 417-451 ; John Chetwood, Immigration Fallacies; R. M. Atchison, Un-American Immigration ; J. A. Riis, How the Other Half Lives ; W. H. Wilkins, The Alien Invasion; Forum, III., 532 ; IV., 397 ; VII., 597 ; VIII., 428 ; XL, 398, 634; XIIL, 128; XIV., no, 608; XVI., 560; XXX., 555; THE RESTRICTION OF IMMIGRATION 4I X. The careful personal investigation of a responsible and trusted official, y. The adaptation of the law to .each case. z. The determination of fitness at home rather than at ports of entry. 3. By prohibiting soli- citation by steamship agents and others. VI CHINESE IMMIGRATION Proposition : The policy of the United States with respect to Chinese immigration should be continued. Introduction General References : A. P. C. Griffin (Library of Con- gress), Select List of References on Chinese Immigration; R. Mayo-Smith, Emigration and Immigration, Chap. 1 1 ; I. M. Condit, The Chinaman as We See Him ; Thomas V. Cooper, Am£rican Politics, Bk. i, p. 281 ; Laws, Treaty, and Regular tions Relating to the Exclusion of Chinese; United States Statutes at Large, XXII., 58 ; XXIIL, 115 ; XXV., 476, 504; XXVIL, 25; XXVIIL, 7,390, 1210; XXXII., Pt. I, p. 176; Official Opinions of Attorneys- General, XXII., 130; Report of the Industrial Commission, XV., Pt. 4 ; Canada, Report of the Royal Commission on Chinese and Japanese Immigration (1902) ; Annual Reports of the Commissioner-General of Ira- migration ; Annual Cyclopczdia, 1882, p. 162 ; 1888, pp. 62, 226; i8g2, p. 192; jgo2, p. 185 ; New International Ency- clopmdia, IV., 541 ; W. D. P. Bliss, Encyclopedia of Social Reform, p. 240 ; Senate Reports, 44th Cong., 2nd Sess., No. 689; 57th Cong., 1st Sess., No. 776; Senate Executive Documents, 48th Cong., ist Sess., No. 62 ; 52nd Cong., 2nd Sess., No. 54; Senate Documents, 55th Cong., ist Sess., No. 167 ; S7th Cong., ist Sess., No. 300; House Reports, 46th Cong., znd Sess., No. 572 ; 51st Cong., 2nd Sess., No. 4048; House Executive Documents, 49th Cong., 1st Sess., No. 102; CHINESE IMMIGRATION 43 Fong Yue Ting v. United States, 146 United States Reports, 698 ; Congressional Record, Vols. 8, 13, 19, 23, 25, 35 (see Indexes) . I. The question is important. A. Because of the terminable character of treaty stipulations. B. The political situation in China. C. The desire of Amer- ican manufacturers to increase their occidental trade. n. It is generally admitted. A. That the essen- tial features of the policy of the United States with respect to Chinese immigration have been as follows: 1. Chinese persons, not expressly exempted, have not been permitted to become residents of the United States. 2. The exempted classes have been: ti. Government officials. V. Teachers. w. Students, x. Merchants. y. Travellers, z. Returning laborers who are registered. m. The question whether this policy should be con- tinued seems to present four main issues. A. Are the Chinese undesirable residents for political reasons? B. Are they undesirable for social reasons ? C. Are they undesirable for economic reasons? D. Is the policy of exclusion a wise one? Brief for the Affirmative References : J. A. Whitney, The Chinese and the Chinese Question; W. B. Farwell, The Chinese at Home and Abroad; Chinese Immigration ; its Social, Moral, and Political Effect, Report of the Special Committee to the California State Senate (1878) ; W. P. Reeves, State Experiments in Australia and New Zealand, II., Chap. 4 ; J. J. Lalor, Cyclopcedia of Political Science, I., 409 ; Senate Miscellaneous Documents, 49th Cong., ist Sess., No. 107; Senate Documents, S5th Cong., ist Sess., No. 120; 57th Cong., ist Sess., Nos. 137, 191; House Re- ports, sist Cong., ist Sess., No. 2915; 57th Cong., ist Sess., 44 POLITICS No. 1231 ; House Miscellaneous Documents, 45th Cong., ist Sess., No. 9 ; North American Review, Vol. 126, p. 506 ; Vol. 139, p. 256; Vol. 143, p. 26; Vol. 157, p. 58; Vol. 165, p. 288; Vol. 166, p. 226; Vol. 173, p. 663; Vol. 174, p. 368; Forum, VL, 196; XXIX., 584; XXXI., 350; XXXIII., 53; XXXIV., 131 ; Arena, XXIV., 21; XXXIL, 113; National Review, XXXVIII., 596; Overland Monthly (N. S.), VI., 507 ; VII., 54, 113, 234, 428 ; Harper's Magazine, LXXXII., 515 ; International Review, III., 383 ; Quarterly Journal of Economics, III., 218, 359; World's Work, IX., 5626; Popu- lar Science Monthly, XX., 721 ; XXXIL, 796 ; XXXVI., 181 ; LXVI., 117; American Law Review, XXVIIL, 734; Scrib- ner's Monthly, XIII., 687; Indepefident, LIV., 12; LVI., 947. I. The Chinese are undesirable residents for political reasons. A. They are a drawback to our govern- ment and institutions. i. They take no interest in public affairs. 2. They have no wish to become citizens. 3. They have no permanent stake in the community, x. Their residence is only temporary. /. They are without homes or families. B. The Chinese are antagonistic to law and order. i. They are ignorant of the sanctity of oaths. 2. They are given to perjury, bribery, and the intimidation of wit- nesses. 3. 'They are ruled by dangerous secret tribu- nals. 4. They are organized into lawless associations. 5. They are a constant source of irritation and discon- tent. C. The Chinese create a system of caste. I. By forming a servile class. 2. By permitting capi- tal, through cheap labor, to secure an undue share of the fruits of industry. II. The Chinese are undesirable residents for social reasons. A. They are an inferior and degraded race. i. They are ignorant. 2. Cruel and savage. CHINESE IMMIGRATION 45 3. Dirty. 4. Idolatrous and superstitious. 5. De- ceitful and dishonest. 6. Avaricious. 7. Without conception of the sanctity of marriage. 8. Without desire for social, moral, or intellectual advancement. B. The Chinese are given to detestable social vices. I. To the traffic and sale of women. 2. To opium- smoking. 3. To gambling. C. The Chinese con- taminate the communities in which they live. i. They herd in squalid surroundings. 2. Spread infectious dis- eases. 3. Furnish a large criminal class. D. The Chinese create race hatred. i. Whites refuse to live with them. E. The Chinese cannot be assimilated or improved. i. They live in isolated groups. 2. They retain their language, habits, and customs. 3. They are untouched by religious or civilizing influences. m. The Chinese are undesirable residents for eco- nomic reasons. A. They injure American labor. I. By lowering the standard of living, x. They are able to work for lower wages than Americans, i'. They live in huts. 2'. Have no families to support. 3'. Re- quire little food or clothing. 2. They throw native workmen out of employment, x. Many trades are mo- nopolized by them. y. Competition occu'-a in skilled as well as unskilled occupations. B. The Chinese are a constant drain on the nation's wealth. i. They con- tribute nothing to the support of institutions and govern- ment. 2. They pay no taxes. 3. They hoard earn- ings and send them to China. 4. They import food and wearing apparel. 5. They prevent desirable im- migration. C. The argument that the Chinese further industrial development by furnishing cheap labor is un- sound. I. Low wages affect the distribution, not the production, of wealth, x. The wage-earner's share is 46 POLITICS less. 2. The highest paid labor is the most efiScient 3. High wages stimulate invention. IV. The policy of exclusion is a wise one. A. It has worked well in the past. I . The number of Chinese in the United States has decreased. 2. Sections which before suffered have prospered exceedingly. 3. With- out the policy of exclusion the United States would have been overrun, x. This is shown by the statistics of other immigration, y. By the attempts of the Chinese to evade the law. B. The argument that exclusion is contrary to American principles is unsound. I. The supreme law of any nation is self-preservation. 2. A nation's civilizing influence depends on its own civiliza- tion. 3. To receive the Chinese would degrade us with- out conferring any corresponding benefit. C. Other nations have found restrictive measures necessary. I. Canada. 2. Australia. 3. New South Wales. Brief for the Negative References : G. F. Seward, Chinese Immigration ; O. Gib- son, The Chinese in America ; L. T. Townsend, The Chinese Problem ; E. E. Baldwin, Must the Chinese Go i ; S. E. W. Becker, Humors of a Congressional Investigating Committee ; Memorial of the Six Chinese Companies {xZ'Ji') ; The Other Side of the Chinese Question (1886) ; Senate Executive Docu- ments, i,ix!a. Cong., ist Sess., No. 148; Senate Miscellaneous Documents, 45th Cong., 2nd Sess., Nos. 20, 36 ; Senate Documents, 57th Cong., ist Sess., Nos. 106, 162; North American Review, Vol. 134, p. 562; Vol. 148, p. 476; Vol. 154, p. 596; Vol. 157, p. 52; Vol. 166, p. 85; Vol.171, pp. I, 214, 411; Vol. 173, pp. 314,782; Vol. 178, p. 414; Vol. 179, p. 263; Forum, VI., 526; X., 678; XIV., 85; XV., 407 ; XXIX., 38s ; XXXII., 598 ; XXXIII., 59 ; Arena, XXVII., 260; XXXI., 352 ; Overland Monthly (N. S.), VII., CHINESE IMMIGRATION 47 I20, 414; XXIII., 518; XXXVIII., 231, 249 j Popular Science Monthly, XVI., 270; Atlantic Monthly, XXIII., 747 ; XXV., 223 ; Harper's Magazine, LXXXVL, 3 ; New England Magazine (N. S.), XXVIII., 473; International Review, y., 449 '1 VI., 355 j X., 51 ; Journal of Social Science, X., 90; Century, LIIL, 104; Scribner's Monthly, II., 61, 286, 494; XII., 862; XIII., 414, 687; XVII., 491; Nation, IX., 44, 309 ; XI., 20; XXII., 241 ; XXVIIL, 130, 145, 316 ; XXXIL, 134; XXXIV., 222, 237; XLIL, 206, 272, 396; LVL, 358, 365 ; LVIL, 23 ; LXXIV., 303 ; Independent, LIV., 692, 801, 858, 974; Outlook, LXIII., 709; LXXII., 984; LXXIIL, 15; LXXVL, 963, 971. I. The Chinese are desirable residents for economic reasons. A. They are excellent laborers. i. They are industrious. 2. Faithful. 3. They possess great manual dexterity. 4. They are easily and inexpen- sively handled in large gangs. 5. They do not engage in strikes. B. Labor of this kind is much needed. 1. In many localities, x. In the South, y. In the West. z. In the Philippines. 2. Such labor is needed in many industries. w. In cattle-raising, x. In min- ing, y. In reclaiming lands, z. In manufacturing. 3. It is needed to combat the power of labor bosses. C. The argument that the Chinese are undesirable because they compete with American laborers is un- sound. I. They compete only in unskilled trades. 2. In such their competition is beneficial, x. Native laborers can turn their attention to higher grades of employment. 3. The Chinese will never come in such numbers as seriously to affect American labor. D. The argument that the Chinese are undesirable be- cause they work for low wages is unsound. i. Cheap labor enables many industries otherwise impracticable to be carried on. 2. It brings comforts and luxuries 48 POLITICS within the reach of all. E. The economic influence of the Chinese is less harmful than that of many classes of Europeans. i. The Russians. 2. Poles. 3. Italians. II. The Chinese are desirable residents for social rea- sons. A. They are not an inferior race. I. They had a high development when modern European na- tions were in a rude state. B. They have admi- rable natural characteristics. i. They are physically able. 2. Intelligent. 3. Persevering. C. They have many social virtues. i. They are tractable. '2. Sober. 3. Polite. 4. They have a high estimate of filial virtue. 5. Few are paupers or beggars. 6. Few are criminals. D. The statement that the Chinese are peculiarly given to social vices is untrue. 1. In most respects they are no worse than Americans. 2. They are superior to many classes of Europeans. E. The statement that the Chinese cannot be assimi- lated is untrue. i. Many have been Christianized. 2. Many are as much a part of the social order as any foreign born. 3. Their segregation is due to the harsh manner in which they are treated. III. The Chinese are desirable residents for political reasons. A. They are peaceable and law-abiding. 1. They have no anarchistic or socialistic tendencies. 2. They take no part in social disturbances, x. In riots. y. Lynchings. s. In labor troubles. B. They are less dangerous to the body politic than other immi- grants. I. They cannot becomecitizens. C. Other nations welcome the Chinese. IV. The policy of exclusion is unwise. A. It is unwise for political reasons. i. It is contrary to CHINESE IMMIGRATION 49 American principles and ideals, x. To the belief that all men are equally endowed by the Creator, y. To the doctrine that the pursuit of happiness is the natural right of all. z. To the declaration that no one shall be denied equal rights because of race or color. 2. Ex- clusion violates the nation's sacred pledges, x. It vio- lates treaty stipulations, i'. The right of exclusion, granted for a time, has been indefinitely extended. 2'. The exclusion which was to be reasonable has been just the reverse, y. Exclusion violates the resolution of Congress, i'. Congress has declared that expatriation is the right of all. 3. Exclusion is inconsistent, j?. The United States cannot seek the open door in China and deny all rights to the Chinese, y. It cannot consist- ently exclude the Chinese and admit less desirable European immigrants. B. Exclusion is unwise for social reasons. i. Many admittedly desirable classes are kept out. x. Clergymen, physicians, journalists, bankers, authors, hotel proprietors. C. Exclusion is unwise for economic reasons. i. It is inimical to trade interests, x. China is the most important market for many kinds of American goods, y. Under the present policy the trade of the United States has fallen off. 5^. That of other nations has increased. D. The argument that if not excluded the Chinese would over- run the United States is untenable. i. The Chinese are not a migratory race. 2. Nearly all have come from a single province. 3. The Chinese government looks with disfavor on emigration. VII DIRECT LEGISLATION Proposition : The system of direct legislation by the people should be more generally adopted in the United States. Introduction General References : E. P. Oberholtzer, The Referendum in America; S. Deploige, The Referendum in Switzerland (Bib.) ; A. L. Lowell, Governments and Parties in Conti- nental Europe, II., Chap. 12; F. A. Cleveland, The Growth of Democracy, Chaps. 8-10; W. D. P. 'Q\\55, Encyclopedia cf Social Reform, pp. 497, 1178; James Bryce, The American Commonwealth (3d ed.), I., Chap. 39; A. B. Hart, Actual Government, pp. 78-81 ; J. J. Lalor, Cyclopcedia of Political Science, III., 581 ; G. H. Haynes, "Representation in State'^ Legislatures," in Publications of American Academy of PoliticalV and Social Science, No. 284; Annals of American Academym of Political and Social Science, II., 324; Yale Review, IV.jF 289 ; Journal of Social Science, XXXIIL, 213 ; English His^ torical Review, VI., 674. -^ I. The question is important. A. Because it has frequently been asserted: i. That there is wide- spread distrust of legislative bodies in the United States. X. That they do not represent the people, y. That they are improperly influenced by corporations and the use of money. B. Because it has also been asserted: "■' I. That the remedy for these evils lies in the wider appli- DIRECT LEGISLATION $1 cation of the principles of direct legislation, x. Direct legislation has been urged in party platforms, y. By- leagues, z. In books, newspapers, and periodicals. II. It is generally admitted. A. That direct legis- lation, as it is commonly advocated, presents two phases. I. The optional referendum, x. A bill passed by a legislative body does not go into effect for a stated time. y. If before that time a number of electors petition, it must be presented to the people at an election, z. If it fails to receive a majority vote, it does not become a law. 2. The initiative, x. On the petition of a number of electors a measure must be framed and pre- sented to the people, y. If it receives a majority vote it becomes a law. III. The question whether a more general adoption of this system is desirable seems to present four main issues. A. Are there evils in representative govern- ment in the United States? B. Would these evils be remedied by the adoption of a system of direct legis- lation? C. Is direct legislation desirable for other reasons? D. Are the results of direct legislation where it has been tried favorable to its further adoption ? Brief for the Affirmative References : Nathan Cree, Direct Legislation by the People ; W. J. Sullivan, Direct Legislation ; W. E. H. Lecky, Democ- racy and Liberty, I., 229-243 ; E. L. Godkin, Unforeseen Ten- dencies of Democracy ; W. D. McCrackan, Swiss Solutions of Atnerican Problems ; G. H. Shibley, Majority Rule ; Eltweed Pomeroy, By the People ; G. Bradford, The Lesson of Popular Government, II., Chaps. 22, 23 ; Senate Documents, 55th Cong., 2nd Sess., No. 340 ; Arena, II., 503 ; VII., 548, 696 ; XVI., 29, 553; XVII., 707, 711; XVIII., 613; xxvi.,42s; 52 POLITICS XXVIL, 533; XXVIII., 119, 464, 517; XXIX., 173, 270, 625 ; XXX., 268, 606-616 ; XXXL, 153, 284, 561 ; XXXII., 128, 406, 446-447 ; Annals of American Academy 0/ Political and Social Science, IV., 883 ; Atlantic Monthly, LXXVIII., i ; LXXX., 35; XCIV., 721 j International Journal of Ethics, XIII., 133; National Review, XSlll., 6^; Contemporary Re- view, YN\.,^^ 458, 561, 565; XXIV., 337; XXV, 465, 521; XXVII., 561; XXVIII., I, 113; XXIX., 48; Gunton's Maga- zine, XVIII., 411; XXIL, 303, 485, 502; XXIIL, 159; XXIV., 25, 220; Popular Science Monthly, LV., 62, 186, 472; LXL, 222 j Political Science Quarterly, XIV., 240; Harper's Magazine, XCVIL, 609, 720 ; Century, LVL, 781 ; Cosmo- politan, XXVI., 351; XXX., 561; International Journal of Ethics, X., 307 ; XII., 360 ; World's Work, IV., 2348 ; Over- land Monthly (N. S.), XXXV., 695 ; National Review, XXXVL, 52; Fortnightly Review, LXXVL, 226; Publications of the Anti-Imperialist leagues. I. The retention of the Islands is undesirable for political reasons. A. It is contrary to funda- mental principles of this government. i. Political THE RETENTION OF THE PHILIPPINES Si independence. 2. Universal citizenship. 3. Uni- versal suffrage. 4. Non-participation in foreign af- fairs. 5. Territory to be acquired only to be made into sovereign States. B. Retention of the Islands will give rise to great political evils. i. The Con- stitution was not designed for the government of colonies. 2. We are not skilled in colonial adminis- tration. 3. The power of the spoils system will be increased. 4. The Islands will be a constant field of irritation and discontent. 5. The Monroe Doctrine will be nullified. 6. An alliance with other Powers for colonial purposes will be inevitable. 7. Our con- tentions in China will be weakened, x. We cannot insist on the open door with China and exclude trade from the Philippines. II. The retention of the Islands is undesirable for economic reasons. A. The cost will be very great. I. For administration. 2. For education. 3. For internal improvements. 4. For military and naval defence. 5. The probable cost is well shown by ex- perience. X. By our own experience thus far. y. By the experience of other colonial Powers. B. Of the cost, the Islands can pay little. i. The natives are indolent. 2. Labor conditions are very bad. 3. The natural resources have been greatly exaggerated. C. The commercial advantages which the United States will obtain are slight. i. The trade of the Islands is inconsequential. 2. Of such as it is, the greatest share can be obtained in open competition. 3. The statement that trade follows the flag is untrue, x. Trade goes to the cheapest producer. 4. The argument that the Islands are necessary to the control of the 6 82 POLITICS Chinese market is unsound, x. The Chinese market can be cared for from two or three ports which could be retained, or from a Chinese station, y. A more hberal treatment of the Chinese in America will do more for trade than any amount of political supremacy in the Philippines. m. The retention of the Islands is undesirable for military and naval reasons. A. The Islands will be a burden in time of peace. i. The presence of a large military and naval force will always be required, x. To preserve order, y. To make demonstrations of force. B. The Islands will be an element of great weakness in time of war. i. They will be the first point of attack. X. They were in the war with Spain. 2. Their defence will be very difficult, x. Because of the unfriendly attitude of the people, y. Because of the extensive seacoast. z. Because of the distance from the United States. rV. The retention of the Islands is morally wrong. A. The people deserve independence. i. They fought for it long and courageously. 2. They failed only because of the superior force of the United States. B. The people are capable of independent self-gov- ernment. I. The great majority are civilized and homogeneous. 2. They have able civil and military leaders. 3. The government they established was one of power and authority. 4. They are much more ca- pable of self-government than the Cubans. C. The United States is incapable of governing the people well. I. We have . insufficient knowledge or experi- ence. 2. We are lacking in sympathy and apprecia- tion. 3. The people distrust us. D. To deny the THE RETENTION OF THE PHILIPPINES 83 people independence is a great breach of faith on the part of the United States. i . The people were led to believe that the United States was their ally and would assist them to secure freedom, x. They were provided with arms and co-operated with. XI THE MONROE DOCTRINE Proposition: The Monroe Doctrine should be con- tinued as a part of the permanent foreign policy of the United States. Introduction General References : A. B. Hart, Handbook of History, Diplomacy, and Government, Sees. 20 f, 46, 79 (Bibs.) ; D. C. Gilman, James Monroe (Bib.) ; President Monroe's Message, in J. D. Richardson's Messages and Papers of the Presidents, II., 207; M. Hill, Liberty Documents, Chap. 20; "Extracts from Official Declarations of the United States Embodying the Monroe Doctrine, 1789-1891," in American History Leaflets, No. 4 ; Francis Wharton, Digest of the international Law, Sec. 57 ; W. C. Ford, "The Genesis of the Monroe Doctrine," in Massachusetts Historical Society Proceedings, 2nd Ser., XV., 373-436 ; Freeman Snow, American Diplomacy, pp. 237-294; Dispatches of Mr. Olney and Lord Salisbury, in Foreign Rela- tions of the United States, i8gj, Pt. i, pp. 542-5 76 j W. F. Reddaway, The Monroe Doctrine ; G. F. Tucker, The Monroe Doctrine ; J. H. Latand, Diplomatic Relations of the United States and Spanish America ; J. B. McMaster, History of the People of the United States, V., Chap. 41 ; Annals of American Academy of Political and Social Science, VII., i ; XXII., No. i ; Political Science Quarterly, XL, i ; North American Review, Vol. 133, p. 241 ; Fortnightly Review, LXX., 357; Independent^ LIV., 721. THE MONROE DOCTRINE 85 I. The question is important. A. It presents probably the most widely controverted as well as the most important phase of the foreign policy of the United States. i. The Monroe Doctrine has been called the foundation of the nation's policy with respect to American affairs. 2. In recent years it has been both sharply criticised and vigorously reasserted as a doctrine of permanent interest. II. It is generally admitted. A. That the circum- stances which gave rise to the Monroe Doctrine were two. I. The claim of Russia to occupy territory in the Northwest. 2. The threatened intervention, by a com- bination of European Powers, to reimpose Spanish rule on revolted S^outh American States. B. President Monroe's announcement was: i. That the American continents were not to be considered subjects for future colonization by European Powers. 2. That any inter- vention in South American affairs would be regarded as manifesting an unfriendly spirit toward the United States. III. Probably it also will be admitted. A. That the Monroe Doctrine has been somewhat developed since its announcement in 1823. B. That as it exists to-day it might be stated thus: i. The interest of the United States in American affairs is paramount. 2. The United States will resist, forcibly if necessary, all European aggression, w. The acquisition of new ter- ritory or dominion, x. Political intervention, y. The extension of existing boundaries, z. The transfer of territory or sovereignty, if inimical to the interests of the United States. IV. The question whether this doctrine should be continued as a part of the permanent foreign policy of 86 POLITICS the United States seems to present four main issues. A. Is the Monroe Doctrine supported by authority? B. Is it supported by reason? C. Is it supported by the experience of the past? D. Is it supported by the necessities of the future? Brief for the Affirmative References : John W. Foster, A Century of American Diplomacy ; J. A. Kasson, TAe Evolution of the United States Constitution, pp. 223-273 ; Theodore Roosevelt, American Ideals, Chap. 11; J. B. McMaster, With the Fathers, pp. i- 54 ; S. E. Baldwin, Modern Political Institutions, Chap. 13 ; John Chetwood, Manila, or Monroe Doctrine 1 President Cleve- land's Message, in Senate Documents, S4th Cong., ist Sess., No. 31; Forum, XX., 713; XXX., 722; North American Review, Vol. 133, p. 523; Vol. 160, p. 651 ; Vol. 169, p. 448; Vol. 176, pp. 185, 728, 881 ; Arena, XXIII., 247 ; National Review, XXVI., 595; XXVIL, 156; XL., 871; Harper's Magazine, Vol. 109, p. 857; Nineteenth Century, LII., S33J Chautauquan, XXII., 549 ; XXXVI., 43 ; American Review of Reviews, XX., 560; Century, LXII., 283, 405; Gunton's Magazine, X., i, 81, 84, 232 ; Outlook, LXX., 371 ; Spectator, LXXV., 478; LXXXIX, 280; Saturday Review, IXXX., 794. I. The Monroe Doctrine is supported by authority. A. It is supported by the. authority of international law. I . Every State has the right to resist the acts of another against a third which menace its peace, security, or welfare. 2. The argument that no State can interfere in the affairs of another without assuming responsibility, is not pertinent. ;tr. The United States does not seek to control the conduct of any State in its relations with others. B. The Monroe Doctrine is supported by the practice of nations. i. It has been declared and THE MONROE DOCTRINE 8/ followed by the United States for three-fourths of a cen- tury. 2. It has always been acquiesced in by foreign nations. C. The doctrine is supported by national precedent and policy. i. It is the embodiment of ideas as old as the government, x. Washington, Jeffer- son, Madison, and Adams expounded it in various forms. 2. It has been uniformly declared and acted upon by the executive branch, x. Every President who has referred to it has re-affirmed it. 3. It has been uniformly accepted and acted upon by Congress. X. Every resolution relating to it has been in its sup- port. 4. Every Latin-American republic has at some time affirmed it. 5. The fact that it has never been enacted or resolved in words by Congress is unimpor- tant. X. Congress has wisely preferred to leave the application to the executive branch. II. The Monroe Doctrine is supported by reason. A. It is based on sound political principles. i. On the right of self-defence. 2. On the duty of preserv- ing the peace and safety of the nation. 3. On the paramount interest of the United States in American affairs. 4. On the desirability of preserving republi- can institutions. B. The doctrine presents an ad- mirable working rule. i. It need not be invoked under the most trying circumstances. 2. It may be resorted to when the interests of the United States are only remotely affected. C. The argument that the doctrine to-day is not that of Monroe and that the ex- tensions are unjustifiable, is unsound. I. The under- lying principle is the same. 2. The development has been consonant with the development of the interests and power of the United States. 3. The danger of permitting European nations forcibly to extend their 88 POLITICS territory and to transfer sovereignty is the same as that of colonization. D. The statement that the doctrine is unreasonable, as it permits South American States to disregard their obligations, is untrue. i. The United States has always allowed European Powers to^_ make armed demonstrations and to punish breaches. E. The argument that if the interests of the United States are endangered, no advantage can be had from asserting the Monroe Doctrine is unsound. i. A pro- test acquires weight because of the historical precedents on which it may be based. 2. The mere fact that the doctrine exists prevents complications. III. The doctrine is supported by the experience of the past. A. It has been of great value to South America. i. It has made possible the independent existence of South American States, x. They have been preserved from the ambition and intrigues of European diplomacy. 2. It has insured the stability of republican institutions. B. The doctrine has been of great value to the United States. i. It has given the undisputed supremacy of the Western world. X. Hostile and powerful nations have been prevented from encamping near by. 2. It has strengthened our position among the world Powers, x. A definite policy has been presented and courageously insisted upon. 3. It has made for international peace, x. The quar- rels of the old world have been kept out of the new. y. Assertions of the doctrine have always had the effect of averting war. 4. It has made for national progress and prosperity, x. The country has been relieved from the expense of enormous fleets and armies. IV. The doctrine is demanded by the necessities of the future. A. It is essential to the welfare of THE MONROE DOCTRINE 89 South America. i. Without it the colonization and partition of South America is inevitable, x. The pres- sure of the overflow of European population is enor- mous, y. Colonies of Europeans are already settled in many parts of the continent, s. Only the Monroe Doctrine prevents a repetition of what has happened in Africa and China. 2. The argument that the coun- tries of South America would be better off as European colonies is untenable. w. The people are a strong and progressive race. x. They have high hopes and ambi- tions, y. They have made much progress, z. The continent as a whole cannot be judged by the history of a few States. B. The doctrine is essential to the welfare of the United States. i. To abandon it would seriously impair national prestige, x. The pre- eminence of the United States on the Western conti- nent would be destroyed. 2. Grave national dangers would constantly threaten, x. The country would be hemmed in with the forts and naval stations of rival Powers. 3. The burden of government would be enormously increased, x. A much larger army and navy would be necessary. Brief for the Negative References : A. B. Hart, Foimdations of American Foreign Policy, Chap. 7 (Bib.) ; J. B. Henderson, American Diplomatic Questions, Pt. 4 ; T. S. Woolsey, America's Foreign Policy, pp. 223-238; E. J. Phelps, "The Monroe Doctrine," in America and Europe, Chap. II. ; Forum, VII., 192 ; XX., 456, 705 ; North American Review, Vol. 173, p. 832 ; Vol. 176, pp. 321, 518; Political Science Quarterly, XL, 30, 44; XIV., 355 ; Michigan Political Science Association Publications, IL, loi; American Historical Review, VII., 77, 676; VIII., 28; Fortnightly Review, LXXVL, 10 13; LXXVIIL, 837; go POLITICS Westminster Review, Vol. 145, p. 271 ; Vol. 149, p. 237 ; Vol. 150, p. 171 ; Vol. 159, p. 125 ; Nineteenth Century, XL., 849 ; LIII., 587 ; Popular Science Monthly, XLIX., 433 ; Chautau- quan, XXXIV., 469 ; American Law Review, XXIX., 839 ; New Liberal Review, III., 205 ; Saturday Revieiv, LXXXV., 721; XLIV., 256; Nation, XXXIV., 9; LX., 356; LXL, 304 ; LXII., 4, 30, 90 ; LXVI., 368 ; Independent, LV., 9. I. The Monroe Doctrine is not supported by au- thority. A. It has no place in international law. 1. It is sanctioned by no recognized rule. 2. The argument that every State may interfere to protect its interests from foreign aggression is not pertinent. X. No nation can assume, with reference to independ- ent States for whose conduct it acknowledges no respon- sibility, that its interests are involved in whatever may happen to them simply because they are in the same hemisphere. 3. No nation can insert a principle in international law not accepted or recognized by other nations. B. The Monroe Doctrine is not supported by the practice of nations. i. It has never been ac- cepted or recognized by any Power. 2. It has been distinctly repudiated. C. The doctrine is not sup- ported by the law of the land. i. It has never re- ceived legislative approval, by resolution or by statute. 2. The executive branch has no authority to determine questions of national policy. D. The doctrine is not supported by uniform precedents. i. It has been disregarded on many occasions when it might have been appealed to. II. The Monroe Doctrine is not supported by reason. A. It is not the doctrine of Monroe. i. Monroe did not threaten force, x. He stated simply that certain acts would be regarded as manifesting an unfriendly THE MONROE DOCTRINE , 9I spirit. 2. Monroe did not guarantee the maintenance of existing boundaries. B. The circumstances which called forth the doctrine have long ceased to exist. I. No combination of Powers is seeking to overthrow republican institutions. 2. All parts of America are under the rule of civilized nations. C. The doctrine is inconsistent. i. The United States admits no re- sponsibility, yet asserts the right to interfere between South America and the rest of the world. 2. The Uirited States forbids intervention in South America, but intervenes in Europe and Asia. D. The doc- trine is unnecessary. i. When any interest of the United States worth insisting on is affected, the Monroe Doctrine is superfluous, x. The danger itself is ample ground for action, y. The nation's position gets no additional force from being labelled with a worn-out maxim. III. The doctrine is condemned by the experience of the past. A. It has been disadvantageous for South America. I. It has permitted wide-spread anar- chy and disorder, x. Illegally constituted governments. y. Many revolutions. 2. It has condemned to self- government people who are wholly incapable, x. They have been unable to keep the peace, y. Unable to protect the lives and property of residents. 3. It has caused complete industrial stagnation, x. Much of South America is barely explored, y. The population is small, z. Rich mineral and agricultural resources are undeveloped. B. The doctrine has been dis- advantageous for the United States. i. It has been a constant menace to peaceful and friendly relations. X. The nation has been made to assume positions with- out regard to its real interest, y. Grave complications 92 POLITICS have been caused over unimportant questions. 2. Ex- cept in the instances that called it forth, the doctrine has been of no service, x. On the only occasion since 1823 that the security of the United States was en- dangered it was not invoked, i'. The French occupa- tion of Mexico. IV. The doctrine is condemned by the prospects of the future. A. It will be injurious to the future welfare of South America. i. South America will be condemned for many years to anarchy and indus- trial backwardness, x. National development will be hampered, y. Moral advancement will be precluded. z. Commercial activity will be impossible. B. The doctrine will be injurious to the future welfare of the United States. i. It will be a constant menace to peaceable and friendly relations with foreign Powers. 2. It will require an increasingly large army and navy. X. In no other way can it be made effective. C. The argument that the security and welfare of the United States would be endangered if the doctrine were aban- doned, is unsound. i. Even if colonization were to take place in South America, the interests of the United States would not be unfavorably affected, x. Our real power would be as great, y. Our resources would be no less. z. Our frontier would be no more exposed. 2. The idea that a South American colony would be dangerous is absurd when the proximity and resources of Canada are considered. ECONOMICS ECONOMICS XII PROTECTION AND FREE TRADE Proposition: Protection is preferable to free trade as a commercial policy for the United States. Introduction General References : Edward Stanwood, American Tariff Controversies in the Nineteenth Century (2 vols.) ; F. W. Taus- sig, Tariff History of the United States ; F. W. Taussig, State Papers and Speeches on the Tariff ; A. S. Bolles, Financial History of the United States, Vol. 2, Bk. 1, Chap. 5, Bk. 3, Chaps. 2-7 ; Vol. 3, Bk. 2, Chaps. 7, 8 ; Ugo Rabbeno, The American Commercial Policy ; A. Maurice Low, Protection in the United States ; J. J. Lalor, Cyclopcedia of Political Science, II., 289 (Free Trade) ; III., 413-440 (Protection) ; W. D. P. Bliss, Encyclopedia of Social Reform, pp. 630, 1135; Encyclo- pcedia Britannica, IX., 752 ; XXXII. (New), 32 ; New Inter- national Encyclopcedia, VII., 781; XIV., 580; XVI., 494; Report of the Industrial Commission, XIX., 1225,1257 (In- dexes) ; " Tariffs of Foreign Countries," in Special Consular Reports, XVI., Pts. i, 2, 3 ; "Tariff Acts, 1 789-1897," in House Documents, 55th Cong., 2nd Sess., No. 562; "Import Duties, 1789-1890," in Senate Reports, 51st Cong., 2nd Sess., No. 2130; House Miscellaneous Documents, 47th Cong., 2nd 95 ECONOMICS Sess., No. 6 j 51st Cong., ist Sess., No. 176; House Reports, 49th Cong., ist Sess., No. 1620; 50th Cong., ist Sess., No. 1496; S3d Cong., 2nd Sess., No. 234; 54111 Cong., 2nd Sess., No. 338 ; " The Anatomy of the New Tariff," in American Re- view of Reviews, XVI., 167; "The Tarifif Act of 1897," in Quarterly Journal of Economics, XII., 42. I. The question is important. A. It dates from the beginning of the government. B. Statesmen, economists, and parties have been divided on it. C. Both policies have been tried. n. It is generally admitted. A. That protection is the policy of levying tariff duties for the purpose of promoting home industries. B. That free trade, commonly although not accurately speaking, is the policy of levying tariff duties for the purpose of rev- enue only. III. Probably it will also be admitted. A. That the classes chiefly affected by a tariff policy of either kind are: i. The nation. ;t:. The people collectively. 2. Producers. 3. Consumers. 4. Wage-earners. rV. The question, therefore, whether protection is preferable to free trade as a commercial policy for the United States seems to present four main issues. A. Is protection beneficial to the nation? B. Is it beneficial to producers? C. Is it beneficial to con- sumers? D. Is it beneficial to wage-earners? Brief for the Affirmative References: Alexander YiamWion, Report on Manufactures ; Friedrich List, The National System of Political Economy; H. C. Carey, Principles of Social Science i Van Buren Denslow, Principles of Economic Philosophy, Chaps. 14, 15, 16; S. N. PROTECTION AND FREE TRADE 9/ Patten, The Eco7iomic Basis of Protection ; H. M. Hoyt, Pro- tection versus Free Trade; J. G. Blaine, Twenty Years of Congress, I., Chap. 9 ; E. H. Roberts, Government Revenue ; William ^cYJ^nXty , Speeches and Addresses ; William McKinley, " History of Tariff Legislation," in Works of Henry Clay (1897), VII. ; George Gunton, Principles of Social Economics, Pt. 4, Chap. 3 ; J. P. Young, Protection and Progress; D. H. Rice, Protective Philosophy ; Forum, IV., 357, 582; VIII., 136; X., 142; XIV., 242, 324; XVI., 696; XXII., 526; XXX., 430; XXXI., 472 ; North American Review, Vol. 135, p. 403 ; Vol. i39> P- 372; Vol. 147, p. 460; Vol. 150, pp. 27, 281, 740; Vol. 158, pp. no, 312; Vol. 164, p. 576; Vol. 168, p. 297; Vol. 175, p. 746 ; Quarterly Journal of Economics, III., 259 ; XV., 371; XVIIL, 13s; Economic Journal, IX., 36; XII., 305 ; XIV., 1 1, 372 ; Publications of American Economic Asso- ciation, 3d Ser., Vol. 3, p. 167 ; Annals of American Academy of Political and Social Science, XXIII., i, 26; International Monthly, IV., 742; International Review, XIII., 248, 455; Harper's Magazine, LXXVI., 426; Gunton' s Magazine, X., 103; XII., i; XVIL, 38s; XVIIL, 323; XXL, 22, zj,; XXIL, 511 ; XXIIL, 164, 273, 46s ; XXIV., 114, 377 ; XXV., 295 ; XXVL, 252, 393, 402, 479 ; Fortnightly Review, LXXVIL, 427, 434; LXXVIIL, 32, 452; LXXX., 49, 466, 747; Nineteenth Century, V., 638; LIV., 181, 202, 369, 538; Independent, LIIL, 149 1 ; LIV., 1294; Publications of the American Protective Tariff League and the Home Market Club ; The Protectionist, I. — ; A?nerican Economist, I. — I. Protection is beneficial to the nation. A. The nation is benefited industrially. i. New industries are created, x. Production is made profitable, y. For-- eigns competition is obstructed, z. Infant stages are tided over. 2. Existing industries are stimulated. X. Production is ^made more profitable, y. Foreign competition is made less severe. 3. Natural re- sources are developed, x. Vegetable and mineral pro- 7 98 ECONOMICS duction is made profitable. 4. Diversity of industry is secured, x. The effect of the tariff is exerted over a wide range. 5. The argument that industrial development is not secured because capital is simply transferred from one field to another] is unsound. X. New capital is attracted to productive employment. y. Capital is drawn from abroad. 6. The argument that national resources are expended because capital is unproductively employed, is unsound, x. Industries not productive at first rapidly become so. B. The na- tion is benefited by protection commercially. i. In- ternal commerce is increased. ;f. The value of what is bought and what is sold is kept within the country. 2. Commercial security is enhanced, jr. Business as a whole is less affected by conditions involving a part. y. It is less affected by foreign economic conditions. z. It is less affected by trade wars and retaliatory meas- ures. C. The nation is benefited socially. i. By the higher wages paid to laborers. 2. By the greater variety of occupations offered. 3. By concentration of population. D. The nation is benefited politi- cally. I. Political independence is secured, x. The nation is made a unit, capable of producing what it needs. 2. National prosperity follows, x. Periods of protection have been periods of business prosperity. y. Periods of low tariff have been periods of business depression. ll. Protection is beneficial to producers. A. Farmers are benefited. i. Directly, x. By duties on farm products and on raw materials. 2. Indirectly. X. The increased number engaged in manufacturing decreases the number engaged in agriculture, y. The concentration of persons in cities creates a greater PROTECTION AND FREE TRADE 99 demand for farm products, z. Manufacturing industries are brought to the farmer's door. B. Manufacturers are benefited by protection. i. The quality of pro- duction is improved, x. Through the ability to pay higher wages, j. Through the opportunity of securing better kinds of machinery at home. 2. Larger do- mestic markets are provided, x. Domestic consump- tion is increased, y. Foreign competition is restrained. 3. Better foreign markets are secured, x. Manufac- turers are enabled better to compete with foreign pro- ducers, ji. Statistics show that export trade has greatly expanded under protective tariffs. III. Protection is beneficial to consumers. A. Consumers are able to purchase goods at lower prices. I. The cost of transportation is saved, x. Farm and factory are brought together. 2. The cost of pro- duction is decreased, x. Business can be conducted on a larger scale. _y. High wages are the cheapest. z. Invention is stimulated, i'. By high wages. 2'. By increased domestic competition. 3'. By the efforts of European producers to counteract the effect of the tariff. 3. Profits are no greater, x. Profits are regu- lated by domestic competition. 4. The argument that the tariff is a tax on the consumer because the duty is added to the price is disproved by facts, x. Facts show that only in rare instances are prices even tempo- rarily raised in a degree commensurate with the import duty. B. The tariff, judged as taxation, is beneficial to the consumer. i. A large part of the national expenditure is paid by foreign exporters. C. The home market created by protection is beneficial to the consumer. i. A home market prevents monopoly and the imposition of unfair rates, x. By importers. lOO ECONOlWICS y. 'Siy carriers. 2. A home market is steady and certain. 3. It promotes reciprocal interests. IV. Protection is beneficial to wage-earners. A. Wage-earners are benefited economically. i. The opportunity for employment is increased, x. By the creation of new industries, y. By the increased pro- duction of raw material, z. By the increased demand for transportation facilities. 2. Higher wages are secured, x. Because of the increased demand for labor, y. Because of the larger fund for the payment of wages, z. Because of improved methods of produc- tion. 3. Statistics show that protective tariffs raise wages. X. Wages are higher in the United States under a protective tariff than in England, in the same occupa- tions, under free trade. 4. The statement that though money wages may be higher, real wages are not, is untrue, x. A comparison of prices and of cost of living shows that real wages are higher. B. Wage- earners are benefited by protection socially. i. A higher social standard is maintained. 2. Greater op- portunity is offered for satisfying natural aptitude in the choice of employment, x. Because of the greater diversity of industry. Brief for the Negative References: Adam Smith, The Wealth of Nations, Bk. 4; Frederic Bastiat, Sophisms of the Protectionists ; Henry Faw- cett, Free Trade and Protection ; W. M. Grosvenor, JDoes Pro- tection Protects A. T. Hadley, Economics, pp. 421-^441 ; Henry George, Protection or Free Trade; W. G. Sumner, Protec- tionism ; W. G. Sumner, Lectures on the History of Protection ; D. A. Wells, Practical Economics, T^^. 64-151 ; C. F. Bastable, The Commerce of Nations ; A. B. and H. Farquhar, Economic PROTECTION AND FREE TRADE lOI and Industrial Delusions; B. R. Wise, Industrial Freedom; G. L. Bolen, Plain Facts as to the Trusts and the Tariff; Forum, V., 79 ; VI., 167, 276 ; VIIL, 475 ; X., i ; XL, 269 ; XIV., 51, 697 ; XXIX., 423; XXXII., 608 J North American Review, Vol. 136, pp. 270, 571 ; Vol. 143, p. 398; Vol. 146, p. 287; Vol. 147, p. 340; Vol. 150, pp. I, 145, 301, 505, 638; Vol. 151, p. 307; Vol. 155, pp. 280, 401; Vol. 157, PP- 493jS°2; Vol. 158, p. 641 ; Vol. 173, pp. 91, 102, iii; Vol. 176, p. 46; Political Science Quarterly, II., 265 ; Quar- terly Journal of Economics, XVII., 280 ; Economic Journal, VIIL, 3; XIIL, 313; XIV., 188, 515; Harper's Magazine, LXXVL, 272; Natio7i, XIL, 352; XLVIL, 235; LL, 57; LVIIL, 189; LXIV., 120, 297; LXXIL, i68, 427, 504; LXXIV., 242 ; LXXV., 182 ; LXXVL, 146, 399 ; Atlantic t^Mon^y, LXXXL, 577; Contemporary Review, XIIL, 321; LXXXIV., 365, 469; LXXXV., 172; LXXXVL, 18; West- minster Review, Vol. 112, p. i ; Vol. 160, p. 477; Vol. 161, PP- 13S' S°° j Fortnightly Review, LXXIX., 542Ajr'ublica- tions of the New York Reform Club, the New EngBnd Free Trade League, and the Cobden Club. I. Protection is injurious to the nation. A. The nation is injured economically. i. National wealth is decreased. x. National wealth depends on the productiveness of industry.^ i'. The greatest accom- plishment for the least expenditure of force, y. The productiveness of industry depends on natural capac- ity, i'. Human capability. 2'. Climate. 3'. Resources. z. Protection diverts industry from pursuits for which there is the greatest natural capacity to those for which there is the least. 2. The argument that the nation is benefited by protection because new industries are created is untenable, x. Nothing is created that did not exist, y. Capital is simply transferred from one industry which is naturally productive to another which 102 ECONOMICS is not 3. The argument that diversity of industry is secured is misleading, x. The value of industry de- pends not on its diversity, but on its productiveness. y. Even if all things could be profitably produced, it would be better to restrict industry to such pursuits as were easiest. 4. The argument that infant industries are helped over ruinous stages is unsound, x. Assum- ing that industries become productive, the cost is more than the profit, y. Only in rare instances do industries become productive, i'. The cry for protection never ceases. 5. There is no more reason for stopping the division of industry at national than at State or county boundaries. B. The nation is injuredjiy protection socially. i. Monopolies are created. ^. BMSignfgf competition, the safeguard against domestic monopoly, is prevented. 2. Facts show that the greatest and most bM|df nsome monopolies are the result of a pro- tective tariff. 3. Social inequality and injustice is caused, x. A large proportion of the great fortunes of the United States were made in protected industries. C. The nation is injured by protection politically. 1. Reckless extravagance and corruption is caused. X. A surplus beyond the nation's needs is created. 2. International ill-feeling fs created, x. Other nations are offended by a selfish policy and retaliate. 3. Na- tional advancement is checked, x. National advance- ment can come only through mutual interchange and dependence. n. Protection is injurious to producers. A. Man- ufacturers are injured. i. The manufacturer's market is restricted, x. Higher duties decrease the volume of imports, y. Decrease in the volume of imports de- creases exports, i'. Commodities exchange only for PROTECTION AND FREE TRADE IO3 commodities. 2'. Money is but a medium, s. Other nations retaliate, i'. By maximum tariffs. 2'. By boun- ties. 3'. By inspection laws. 4'. By trade combinations. 2. Manufacturers need more extended, not more re- stricted, markets, x. In many fields the home market has been exhausted, i'. Production has increased faster than consumption, y. Foreign markets are especially desirable. I '. They steady competition. 2'. They sustain trade in hard times. 3'. They offer large opportunities for increase. B. Farmers are injured by protection. 1. The farmer's market is restricted. 2. The farmer's protection is inconsequential. x. A large part of his product is not affected by foreign competition, i'. It cannot be carried far. y. A large part of the remainder is not helped by import duties, i'. It is disposed of in the world's market where the price is set. z. The only farmer benefited by protection is one on the national boundary. 3. Any possible income to the farmer is more than offset by what he pays additionally as a consumer. in. Protection is injurious to consumers. A. The tariff is a tax on consumers. i. The consumer pay's higher prices, corresponding roughly to the import duty, on all articles of daily use and consumption. 2. In some cases a double tax is paid. x. One on the raw material and one on the finished product. 3. Price statistics show that these assertions are true. B. The tax paid by the consumer is devoted to private, not to public ends. i. So far as foreign competition is ex- cluded, it goes to the domestic manufacturer, x. Many articles of domestic production can be bought cheaper abroad than at home. 2. So far as foreign compe- tition is successful, it goes to the foreign producer. 104 ECONOMICS 3. The argument that importers pay tariff taxes is wholly untenable, x. What the importer pays as duty is returned to him by the consumer. C. The tariff, judged as taxation, is injurious to the consumer. i. It is bad in form. x. Its incidence is concealed. 2. It gives rise to fraud and corruption, x. To smuggling. y. To bribery. 3. It causes favoritism by officials. X. Campaign funds are swelled by tariff concessions. IV. Protection is injurious to wage-earners. A. In the long run protection lowers wages. i. The fund from which wages are paid is decreased, x. Labor and capital, engaged in unproductive industry, create less wealth. 2. The argument that protective tariffs raise wages is disproved by statistics, x. By American sta- tistics, i'. Wages are as high in unprotected as in pro- tected American industries. 2'. Before protective tariffs were adopted, wages were higher in America than abroad. 3'. Wages do not rise and fall as the tariff is changed, y. The fact that protective tariffs do not raise wages is proved by English statistics, i'. Wages are higher in England under free trade than they were under protection. 2'. Wages are higher in Eng- land under free trade than they are on the Continent under protection. B. Protection increases the wage- earner's cost of living. I. As consumers, wage-earners pay higher prices for nearly all articles of daily use and consumption. C. The argument that the tariff pro- tects wage-earners from the competition of the pauper labor of Europe is false. i. The only way in which European labor can compete with American is to come ■ here. XIII COMMERCIAL RECIPROCITY Proposition : The policy of concluding reciprocal commercial treaties with other nations is a wise one. Introduction General References : A^. C. Griffin (Library of Congress), List of References on Reciprocity ; J. L. Laughlin and H. P. Willis, Reciprocity (Bib.) ; " Reciprocity Treaties and Agree- ments of the United States since 1850," in Monthly Sum- mary of Commerce and Finance, Ser. 1904-1905, No. 2, p. 525 ; Dingley Tariff, Sees. 3, 4; "The Reciprocity Convention with France," in Senate Documents, 56th Cong., ist Sess., No. 225 ; Chalfant Robinson, Two Reciprocity Treaties ; Eugene Schuyler, American Diplomacy, Chap. 9 ; J.J. Lalor, Cyclopcsdia of Folitical Science, III., 537 ; New International Eficfclopcedia, XIV., 866; Encyclopedia Americana, XVI. (United States — Reciprocity) ; " The Work of Jhe Reciprocity Commission," in Forum, XXX., 394; " The%'reaty Making Power of the House of Representatives," in Yale ReviejiSfYSi.., 191 ; "Com- mercial Relations of the United States Xi^ith Latin America," in Annals of American Academy of Political and Social Science, XXII., 149-176 ; Proceedings of the National Reciprocity Con- vention (y^ashington, 1901). I. The question is important. A. Because of the .rapid industrial growth of the United States. B. The desire for commercial expansion. C. The retalia- tory tariff measures of other nations. I06 ECONOMICS n. It is generally admitted. A. That reciprocity treaties, as the United States has accepted the term, usually provide for a remission or reduction of duties by this nation in return for similar favors by another. B. Two distinct applications are possible. i. Duties may be remitted or reduced on non-competing articles. X. Those which we do not produce. 2. They may be remitted or reduced on competing articles, x. Those which we do produce. C. Discussion for the most part arises as to the desirability of treaties of the latter kind. III. Probably it will also be admitted. A. That the classes chiefly interested in the working of reciprocity treaties are: i. The nation. ;r. The people col- lectively. 2. Producers. 3. Consumers. 4. Wage- earners. rv. The question, therefore, whether these trea- ties are desirable seems to present four main issues. A. Would reciprocity treaties benefit the nation? B. Would they benefit producers ? C. Would they benefit consumers? D. Would they benefit wage- earners ? Brief for the Affirmative References : J. A. Kasson, Reciprocity ; William McKinley, Speech delivered at Buffalo, Sept. 5, 1901 ; House Executive Documents, 4811-1 Cong., 2nd Sess., No. 226 ; Senate Executive Documents, 5rst Cong., ist Sess., No. 158; 52nd Cong., ist Sess., No. 119; House Reports, S4th Cong., ist Sess., No. 2263; House Documents, 54th Cong, 2nd Sess., No. 338, Ft. 2, Vol. 2, pp. 2087-2099 ; Annual Cyclopcedia, i8go, pp. 202- 205; Report of the Industrial Commission, 'SJyi., 191; Fields. Clark, 143 United States Reports^ 680-697 ; Forum, XXVIIL, 493 ; North American Review, Vol. 177, p. 22 ; Arena, XXX., COMMERCIAL RECIPROCITY 10 J 585; Atlantic Monthly, LXXXL, 577; LXXXVIII., 145; Fopular Science Monthly, LVIII., 625 ; American Law Revieiv, XX-, 513; Journal of Political Economy, XII., 495 j Quarterly Journal of Economics, VII., 26 ; Annals of American Academy of Political and Social Science, XIX., 185 ; XXIII., 55 ; Chau- tauquan, XXXIV., 237 ; Nineteenth Century, V, 638 ; Nation, LXXII., 148, 368 ; LXXIII., 410; Public Opinion, IX., 263 ; XV., 97, 121; XXVIL, 131; Outlook, LXIX., 808; Inde- pendent, LIL, 2897; LIIL, 509, 1491, 2872; LV., 2750; National Reciprocity, I. — I. Reciprocity treaties would benefit the nation. A. The nation would be benefited economically. I. National wealth would be increased, x. National wealth depends on the advantageous interchange of commodities, y. Reciprocity treaties enable us to ex- change what we produce cheapest for what other nations, because of natural advantages, produce cheap- est. 2. Export trade would be increased, x. By the increase in imports, i'. Commodities must exchange for commodities. 2'. It is impossible to sell and not to buy. 3. A safeguard would be raised against in- dustrial stagnation and depression, x. Over-produc- tion would be prevented. 4. Unprofitable trade wars would be avoided. 5- American shipping would be greatly assisted. B. Reciprocity treaties would ben- efit the nation politically. i. They would promote international good-will. x. By bringing other nations into closer contact, y. By establishing mutual respect and interdependence. C The argument that reci- procity treaties are unconstitutional is unsound, x. The question has been definitely settled, y. No legislative power is delegated, s. The Executive is simply em- powered to carry out the legislature's wishes. I08 ECONOMICS II. Reciprocity treaties would benefit producers. A. American producers need larger foreign markets. I. In many fields the home market has been exhausted. X. Manufacturing and natural production have increased faster than population and consumption. 2. Foreign markets are in themselves desirable, x. They steady domestic competition, y. They sustain trade in hard times, z. They offer large opportunities for increase. 3. The foreign market for American output is now insignificant, x. It is insignificant when estimated in respect to total production, y. When estimated in respect to the export trade of European nations. B. Reciprocity treaties would secure larger foreign markets. i. They would break down natural barriers. .*^. By increasing import trade. 2. They would break down artificial barriers, x. The retaliatory measures of foreign nations, i'. Maximum tariffs. 2'. Bounties. 3'. Inspection laws. 4'. Trade combinations. C. Re- ciprocity treaties would enable producers better to com- pete in foreign markets. i. They would lower very considerably the cost of production, x. Production could be carried on on a larger scale, y. Raw materials would be admitted free of duty. D. The argument that American producers would be injured by tariff con- cessions is unsound. i. In only a few cases would a reduction of duty injure producers, x. Cost of pro- duction is lower in the United States than abroad. 2. The great advantages most producers would gain more than outweigh the slight disadvantages a few might suffer. III. Reciprocity treaties would benefit consumers. A. The price of many articles of daily use and con- sumption would be lowered. i. The price of imported COMMERCIAL RECIPROCITY I09 articles would be lowered, x. On many, the entire im- port duty would be saved, y. On others, prices would be considerably less. i'. Because of the competition of production under greater natural advantages. 2. The price of exported articles would be lowered, x. Be- cause of the decreased cost of production, y. Because of increased competition, i'. Larger foreign markets would attract new competitors. IV. Reciprocity treaties would benefit wage-earners. A. The demand for labor would be increased. i. By increased production. 2. By the greater demand for transportation facilities. B. Employment would be more constant. i. Business would be less affected by domestic economic changes. C. Higher wages would be assured. i. Because of the increased de- mand for labor. 2. Because over-production would be avoided. 3. Over-production inevitably lowers wages. D. Cost of living would be less. i. Lower prices would make cost of living less. Brief for the Negative References : A. J. Wilson, Reciprocity, Bi-metalism, and Land-Tenure Reform; Sir T. H., Farrer, Free Trade versus Fair Trade; Sir Louis Mallet, Reciprocity; G. W. Medley, The Reciprocity Craze ; W. C. Ford, Reciprocity ; C. F. Bas- table, The Commerce of Nations, Chap. 16 ; Henry Fawcett, Free Trade and Protection, Chap. 6 ; D. H. Rice, Protective Philosophy, Chap. 14 ; A. B. and H. Farquhar, Economic and Industrial Delusions, pp. 133-135 ; J. P. Young, Economic Aspects of Reciprocity (American Protective Tariff League) ; House Reports, 49th Cong., ist Sess., No. 1648, p. 5 ; S4th Cong., ist Sess., No. 2263, pp. 53-60; Field v. Clark, 143 United States Reports, (>()i-ioo; Forum, XL, 268, 41^; XIV., no ECONOMICS 255; XXV., 683; XXXII., 466, 616-622; North American Review, Vol. 154, p. 414; Gunton's Magazine, XXL, 497; XXIV., 114; Chdutauquan, XXXVII., 127; Contemporary Review, XIII., 340 ; XXXV., 286 ; Outlook, LXIX., 796, 797 ; Nation, LXXIII., 125. I. Reciprocity treaties would injure the nation. A. The nation would be injured economically. i. The import duties remitted to foreign producers would ex- ceed those remitted to American producers. 2. A large market of consumers would be exchanged for a small one. 3. A market protected by a uniformly high tariff would be exchanged for one open to all comers. 4. An unscientific jumble of tariff conces- sions would result. 5. The argument that reciprocity treaties would stimulate foreign trade is unsound. w. Foreign trade is unimportant compared with do- mestic trade, i'. We export little in comparison to our total production, x. Foreign trade is increasing rapidly without reciprocity, i'. It is increasing faster than that of any other nation, y. Foreign trade has increased faster without than with reciprocity treaties, z. Foreign tariff duties are not excessively high. B. Reciproc- ity treaties would injure the nation politically. I. Un- wise political preferences would be established, x. The nation's best customers would be sacrificed for those whose trade is of little value. 2. Methods politically objectionable would be employed, v. Undignified hag- gling, i'. A battle of opposing interests for special legislation would be carried on. w. What should be done openly would be done in secret, x. Diplomacy would be substituted for legislation, y. The business of the people would be taken from the hands of their chosen representatives, z. Legislative power would COMMERCIAL RECIPROCITY III be assumed by the Executive, contrary to the Con- stitution. II. Reciprocity treaties would injure producers. A. Producers from whose industries protection was taken would be compelled to suspend. I. They could not compete with underpaid European labor. 2. The argument that producers would not be injured because tariff duties are unnecessary, is unsound, x. If duties were unnecessary, other nations would gain nothing, i'. They could not compete after a reduction. B. Pro- ducers for whose benefit the treaties were made would gain little. i. They would receive no higher prices for their products, x. Foreign competition would keep prices down to the cost of production, y. Differential advantages, such as those received by foreign producers, would not be secured, i'. The volume of imports would bear too great a proportion to the total consumption. 2. The argument that producers would secure wider markets is unsound, x. The volume of trade induced by reciprocity would be small, y. Such as it was, its benefit would be largely counteracted by increased com- petition. C. Producers affected directly in neither way would be injured indirectly. i. Any change af- fecting one industry affects all. 2. Reciprocity would lead to further tariff concessions. III. Reciprocity treaties would not benefit consumers. A. The argument that consumers would be benefited by lower prices, is unsound. i. Prices would be low- ered only when importation covered the entire demand and there was effective competition, x. If importation were less than the total demand, prices would not be affected, i'. Price is determined by the most expensive cost of production., y. Although importation covered 112 ECONOMICS the entire demand, if foreign production were in the control of a monopoly, prices would not be lowered. z. If articles were imported in an unfinished state, and the process of fitting them for market were in the con- trol of a monopoly, prices would not be lowered. IV. Reciprocity treaties would injure w^age-earners. A. Many wage-earners would be thrown out of em- ployment. I. All of those in industries afiected by tariff concessions. B. The argument that wage- earners would be benefited by increased production and by lower prices, is untenable. i. The amount of trade induced by reciprocity would be too slight to have any appreciable effect on production, x. Pro- duction for foreign trade is insignificant when compared with that for home consumption. 2. The benefit to wage-earners as consumers would be practically nothing. ' XIV RECIPROCITY WITH CANADA Proposition : A reciprocal commercial treaty should be concluded between the United States and Canada. Introduction General References: J. L. Laughlin and H. P. Willis, Reciprocity, Chap. 2, and pp. 440-447 (Bib.); Chalfant Rob- inson, Two Reciprocity Treaties (Bib.) ; M. G. Mulhall, In- dustries and Wealth of Nations, Chap. 19 ; " Commercial Relations between the United States and Canada" (1831- 1893), in Senate Executive Documents, 53d Cong., 2nd Sess., No. 106; Senate Executive Documents, 32nd Cong., ist Sess., No. 112 ; " Relations with Canada," in Senate Reports, 51st Cong., ist Sess., No. 1530; Senate Executive Docu- ments, 52nd Cong., ist Sess., No. 114, Pts. i, 2 ; F. E. Haynes, "The Reciprocity Treaty with Canada of 1854," in Publications of American Economic Association, Vol. 7, No. 6 ; Encyclopcedia Britannica, XXVI. (New), 533-537 ; Canadian Magazine, VIII., 423. I. The question is important. A. Of the many specific proposals for reciprocity treaties that with Canada is probably the most important. i. It has been under consideration for many years. 2. Reci- procity was for some time tried. 3. Agitation for closer commercial union seems to be increasing. 1 14 ECONOMICS II. It is generally admitted. A. That the com- mercial policies of the United States and Canada, al- though similar, are now wholly independent. i. The United States maintains a tariff which applies without change to Canada. 2. The Canadian tariff, although somewhat lower than that of the United States, applies without change to this country. B. Any commercial treaty with Canada would probably contain two main provisions. i. A provision for the free exchange of natural products. 2. A provisipn for lower import duties on American manufactures. m. The question whether a treaty of this kind would be preferable to the present policy presents appar- ently four main issues. A. Is the present commer- cial policy of the United States with respect to Canada objectionable? B. Would reciprocity with Canada be advantageous for the United States? C. Is reci- procity practicable? D. Is the experience of the United States under the former treaty favorable to a new one? Brief for the Affirmative References : Goldwin Smith, Canada and the Canadian Question, pp. 281—301 ; Handbook of Commercial Union; Erastus Wiman, Closest Trade Relations between the United States and Canada ; Canadian Leaves, pp. 175, 269 ; Albert Shaw, editor, The National Revenues, pp. iig-123; Report of the Industrial Commission, IX., cclxxix ; Publications of the New England Free Trade League, i8g8, No. 5 ; House Executive Documents, 31st Cong., ist Sess., No. 64; Senate Executive Documents, 31st Cong., 2nd Sess., No. 23; House Reports, 32nd Cong., 2nd Sess., No. 4; 37th Cong., 2nd Sess., No. 22; 44th Cong., ist Sess., No. 9; 54th Cong., ist Sess., No. 2263, pp. 63-76; Forum, VI., 241; XI., 272; RECIPROCITY WITH CANADA IIS XXV., 329, 652; XXVII., 479; XXIX., 471; XXX., 180; XXXII., 582 ; North American Review, Vol. 74, p. 168 ; Vol. 79) P- 464; Vol. 139, p. 42; Vol. 148, p. 54; Vol. 151, p. 212; Vol. 164, p. 710; Vol. 165, p. 418; Vol. 167, p. 165 ; Vol. 176, pp. 401, 602 ; Vol. 178, p. 205 ; Canadian Magazine, IX., 502 ; XII., 198 ; XIII., 13 ; XXIII., 407, 507 ; New England Magazine (N. S.), XX., 731 ; Journal of Polit- ical Economy, XII., 495 ; Century, XVI., 236 ; New Eng- lander, LIIL, i ; Magazine of American History, XIX., 21; American Review of Reviews, XVI., 712; XXVIII., 462; Nation, LXXII., 29 ; LXXVIIL, 345 ; Outlook, LXXIIL, 483 ; LXXVIIL, 1065 ; Independent, LVI., 394; LVII., 1416. I. The present commercial policy of the United States with respect to Canada is objectionable. A. It is objectionable for political reasons. i. The people of Canada have been turned from the United States. X. Bitterness, hostility, and resentment have been aroused. 2. The relations between Great Britain and Canada have been made more intimate, x. Great Britain has become the chief market for Canadian prod- uce, y. Great Britain has been given trade prefer- ences. B. The present policy is objectionable for economic reasons. i. The present trade barriers are unnatural, x. The American continent is an economic whole, y. The boundaries between Canada and the United States are practically co-terminous. z. There is as much reason for commercial union between the United States and Canada as between the different sections of the United States. 2. The present trade barriers erected by the United States are unfair. w. Canada gives the United States a large free list; the United States gives Canada substantially none. x. Canada's exports to the United States are insignificant compared with her imports, y. Canada is the best customer of Il6 ECONOMICS American manufacturers, z. Canada consumes more of the natural produce of the United States than the United States of Canada. 3. If the present barriers are continued, Canada will surely retaliate, x. Her public men have definitely said so. y. There is a strong public sentiment in favor of higher duties. z. Only the hope for reciprocity has thus far prevented action. 4. If Canada retaliates, it will be a serious blow to American manufacturers, x. With higher duties Canadian manufacturers can become formidable competitors. II. Reciprocity with Canada would be advantageous for the United States. A. It would be advantageous for political reasons. i. Better relations would be es- tablished between the two countries, x. They would be bound by strong mutual interests. 2. Better relations would be established between the United States and Great Britain, x. Most of the recent difificulties between the United States and Great Britain have been because of Canada. 3. The outlook for annexation would be improved. B. Reciprocity with Canada would be advantageous for economic reasons. i. American manufacturers would be benefited, x. New markets of immense value would be opened, i'. Valuable because of the large body of consumers. 2'. Because easy of access. 3'. Because Canada, under reciprocity, would grow in wealth and population. y. Raw materials would be more accessible, i'. Copper, nickel, iron, timber, coal. 2. American consumers would be bene- fited by reciprocity, x. Large fisheries would be ac- cessible, y. New fields of farm produce would be opened, z. The arable land of the United States is rapidly decreasing. 3. American investors would be RECIPROCITY WITH CAiSTADA 11/ benefited, x. The increased markets for Canadian produce would call for new capital, y. Capital now commands a low rate of interest in the United States. 4. American transportation facilities would be bene- fited. X. Railroads, y. Transportation on the Great Lakes, s. Deep-water traffic, i'. The natural shipping points for Canadian produce are in the United States. 5. The argument that much revenue would be lost to the United States by reciprocity is unsound, x. The cost of collecting the present revenue is immense. y. The balance would more than be returned to the United States in increased trade. III. Reciprocity is practicable. A. Canada and the United States have many interests in common. I. They have similar economic interests, x. Fiscal poli- cies, y. Wages, z. Cost of production. 2. They have similar political interests, x. Form of gov- ernment, y. Laws. z. Institutions. 3, They have similar social interests, x. Language, y. Religion. z. Habits. rV. The experience of the United States under the former treaty is favorable to a new one. A. Under the former treaty, trade between the United States and Canada increased rapidly. B. The total balance of trade was much in favor of the United States. C. The argument that the treaty was unfavorable to the United States because of the increase in Canadian exports is unsound. i. Exports exceeded imports only for a brief period. 2. The excess continued sometime after the abrogation of the treaty. 3. Many commodities were sent to the United States for export to Europe. 4. Many commodities were sent to the United States in anticipation of the treaty's abrogation. D. The Il8 ECONOMICS argument that the treaty must have been unfavorable to the United States since it was abrogated is un- sound. I. It was abrogated for reasons which in no way touched its merits, x. Revenue was needed by the United States to pay the debt of the Civil War. y. Ill feehng was aroused by British sympathy for the South during the war. z. Canada imposed higher duties for revenue purposes than was thought fair. Brief for the Negative References : H. C. Lodge, Reciprocity with Canada (Speech before the Home Market Club, April 2, 1903) ; House Execu- tive Documents, 36th Cong., ist Sess., No. 96 ; 40th Cong., 3d Sess., No. 36; House Reports, 46th Cong., 2nd Sess., No. 1 127, Pt. 2 ; Works of Charles Sumner, IX., 178 ; North American Review, Vol. 153, p. 468; Forum, VI., 451-456; Penn Monthly, N ., 529; Canadian Magazine, XVIII., 226; XXIII., 416; Chautauquan, XXXIV., 239-240; Independent, LVIL, 1277. I. The present commercial policy of the United States with respect to Canada is satisfactory. A. It is satisfactory for economic reasons. i. Trade with Canada is on a very advantageous basis. w. Canada purchases annually large quantities of goods from the United States, i'. More than from any other nation, not excepting Great Britain, x. The volume of this trade is rapidly increasing, i'. It is increasing faster than Canada's trade with any other nation, y. The balance of the trade is greatly in favor of the United States, l'. Canadian imports far exceed exports, z. Canadian tariff schedules are not high. i'. They are not high when compared with those of the United States. 2'. When compared with those of other countries. 2. The argu- RECIPROCITY WITH CANADA IIQ ment that reciprocity is desirable because this basis of trade cannot continue, and that Canada will retaliate, is unsound. ;ir. Canada is not likely to retaliate, i'. She must inevitably remain a food and raw material pro- ducing country. 2'. Canadian consumers will object to higher import duties, y. It will be time to consider reciprocity when Canada has acted. B. The present commercial policy is satisfactory for political reasons. I. The relations between the countries are harmonious. X. Social intercourse is cordial, y. Business rivalry is keen but straightforward. II. Reciprocity with Canada would be disadvanta- geous for the United States. A. It would be disad- vantageous for economic reasons. i. The products of Canada and the United States are competitive, not supplementary, x. The United States produces practi- cally everything that Canada does. 2. Canada would receive far greater benefits from reciprocity than would the United States. x. She would receive a large market in return for a small one. y. The remission of a large import duty for a small one. 3. No substantial in- crease in trade would be likely to follow from reci- procity. 4. Many important interests in the United States would surely suffer, w. Agricultural interests. i'. American farmers would be undersold, x. Fishery interests, i'. Without the present duty American fish- ermen would be greatly handicapped, y. Commercial interests, i'. Capital would be transferred to Canada. 2'. Emigration would increase. B. Reciprocity with Canada would be disadvantageous for political reasons. I. There is no more reason for discriminating in favor of Canada than any other nation. 2. The argument that reciprocity would lead to political union is un- 120 ECONOMICS ■ tenable, x. It had no such effect when tried before. y. Canadians do not wish for political union. III. Reciprocity is impracticable. A. It is im- practicable for administrative reasons. i. English goods would be brought into the United States by way ^ of Canada free. B. It is impracticable for military reasons. i. In case of war our frontier would be defenceless. C. It is impracticable for economic reasons. i. Land, labor, and cost of hving are much cheaper in Canada than in the United States. 2. It would be impossible to secure a treaty with Canada of any real benefit to the United States. IV. The experience of the United States under the former treaty is not favorable to a new one. A. Sta- tistics show that the treaty worked greatly to the dis- advantage of the United States. i. A large amount of revenue was lost. 2. Canadian trade with the United States increased while that of the United States with Canada decreased. 3. Before the treaty, the balance of trade was greatly in favor of the United States. 4. After the treaty went into effect the bal- ance turned in favor of Canada. XV SHIPPING SUBSIDIES Proposition: The United States should establish a more extensive system of shipping subsidies. Introduction General References : A. P. C. Griffin (Library of Con- gress), List of Books on Mercantile Marine Subsidies (2nd ed.) ; W. L. Marvin, The American Merchant Marine ; W. W. Bates, American Navigation; W. W. Bates, American Marine (2nd ed.) ; N. S. Shaler, editor, The United States of America, I., Chap. 10; C. M. Depew, editor. One Hundred Years of American Commerce, I., 20, 38, 63, 119; New International EncyclopcBdia, XV., 790 ; J. J. Lalor, Cyclopadia of Political Science, III., 818; Report of the Industrial Commission, IV., VII., IX., XIV., XVII. (see Indexes); "Shipping Industry of the United States," in Monthly Summary of Commerce and Finance, Ser. 1900-1901, No. 6; "British House of Com- mons Report on Subsidies," in Annual Report of the Commis- sioner of Navigation {U. S.), igoj, p. 268; "The Merchant Marine of Foreign Countries," in Special Consular Reports, XVIII. ; "New French Subsidy Bill," in. Consular Reports, LXVIII., 519; "German Merchant Marine," in Monthly Con- sular Reports, LXXV., 315 ; Senate Documents, S5th Cong., 3d Sess., No. 91 ; s6th Cong., ist Sess., No. 149 ; 56th Cong., 2nd Sess., No. 61 (Bib.); 57th Cong., ist Sess., No. 87; House Executive Documents, 49th Cong., ist Sess., No. 172 ; House Reports, 41st Cong., 2nd Sess., No. 28 ; 47th Cong., 122 ECONOMICS 2ncl Sess., No. 1827; 51st Cong., ist Sess., No. 1210; Con- gressional Record, Vols. 21, 22, 34, 35 (see Indexes); Blue Book of American Shipping; Annual Reports of the Commis- sioner of Navigation ; Proceedings of the United States Naval Institute, VIII., No. i. I. The question is important. A. It touches one of the oldest and most noteworthy phases of national life and industry. B. Increased attention has been drawn to it in recent years. i. By the growth of the nation's export trade. 2. By the greater interest in maritime affairs in general. 3. By frequent discus- sions in Congress. II. It is generally admitted. A. That the marine subsidies granted by modern Powers are usually of two kinds. i. Mail subsidies, x. Payments to fast steamships for which mails are carried. 2. General subsidies, x. Payments for the construction and opera- tion of sea-going vessels in general for which various returns are made. B. That the United States now grants a limited subsidy of the first kind only. C. That the substance of the more recent proposals with respect to subsidies has been: i. To increase the present mail subsidy. 2. To grant a general sub- sidy based on tonnage and , mileage to vessels above a certain size. 3. To exact in return, x. The carry- ing of mails, y. The privilege of purchase or hire for national defence, z. Certain preferences for American seamen. III. The question whether these proposals should be adopted seems to present four main issues. A. Is , the shipping industry in the United States in an unsatis- factory condition? B. Are further subsidies neces- sary for its upbuilding? C. Are further subsidies SHIPPING SUBSIDIES 1 23 desirable? D. Is the experience of this and other nations favorable to subsidies? Brief for the Affirmative References : C. S. Hill, History of American Shipping; J. D. Long, editor. The Republican Party, pp. 207-231 ; Senate Reports, 47th Cong., 2nd Sess., No. 883 ; 55th Cong., 3d Sess., No. 1551; s6th Cong., ist Sess., No. 473; 57th Cong., ist Sess., No. 201 ; 58th Cong., 3d Sess., No. 2949 ; Senate Docu- ments, s6th Cong., and Sess., No. 54; 57th Cong., ist Sess., No. 1 01 ; Senate Miscellaneous Documents, 43d Cong., 2nd Sess., No. 83 ; House Reports, 48th Cong., ist Sess., No. 363 ; 51st Cong., ist Sess., No. 2889 ; 53d Cong., ist Sess., No. 148, Pt. 2 ; 55th Cong., 3d Sess., No. 1866 ; 56th Cong., ist Sess., No. 890; North American Review, Vol. 99, p. 483; Vol. 132, p. 467; Vol. 146, p. 566; Vol. 148, p. 687; Vol. 150, p. 27; Vol. 154, p. 76 ; Vol. 156, p. 398 ; Vol. 158, p. 433 ; Vol. 159, p. 424; Vol. 160, p. 85 ; Vol. 163, p. 470; Vol. 16S, p. 240; Vol. 172, p. 285; Vol. 17s, pp. 5, 829; Vol. 177, p. 533; American Review of Reviews, XXL, 319 ; XXIIL, 197 ; XXVIL, 307 ; Forum, XII., 387 ; XXVIIL, 297 ; XXIX., 532 ; Arena, XVIL, 242; Chautauquan, VIIL, 404; XXXIL, 137; Inter- national Review, XIIL, 34, 280, 533 ; XIV., 40 ; Scribner's Magazine, XKXll.,^'; J ; Cosmopolitan, XXXIL, ^j i ; Lippin- cotfs Magazine, XLV., 715 ; Fortnightly Review, LXXIX., 287 ; Overland Monthly (N. S.), L, 462 ; XII., 640 ; XIV., 305; XXVIIL, 567; XXXIV., 401; Independent, LL, 254; LIIL, 10, 130. I. The shipping industry of the United States is in an unsatisfactory condition. A. Shipping in the foreign trade is unsatisfactory. i. It has greatly de- creased. X. In respect to the total number of tons engaged, y. In respect to the amount of exports and imports carried in American vessels, z. In respect to 124 ECONOMICS the carrying done for foreign nations. 2. The ship- ping of other nations has increased. 3. The state- ment that the total tonnage of the United States has increased is immaterial, x. The increase has been only in the coasting trade. ' B. The condition of the ship- building industry in the United States is unsatisfactory. 1. Practically no building is now done for the foreign trade. C. Lack of ships and shipping has caused grave commercial evils. i. Large sums are annually paid to foreigners for transporting American products. 2. The development of the American export trade has been retarded, x. Exports have not kept pace with population or with productive resources, y. Other nations have been able to appropriate exclusive mar- kets. 3. War between two great Powers would leave American producers without access to foreign ports. D. Grave political evils have been caused by the lack of ships and shipping. i. National defence has suf- fered. X. In the Spanish War it was necessary to charter foreign vessels to transport troops and supplies. 2. National prestige has suffered, x. The American flag is rarely seen in foreign ports. n. Further subsidies are necessary for the upbuild- ing of the shipping industry. A. Without further assistance the industry can make no progress. i. The cost of constructing vessels in the United States is mudh higher than abroad, x. Materials are more expensive. y. Labor is more costly. 2. The fact that a few for- eign war-ships have been built in the United States is negligible, x. Other considerations except price have entered. 3. The cost of operating vessels in the American is higher than in the foreign service. X. Wages are higher, y.. Subsistence is more expen- SHIPPING SUBSIDIES 125 sive. B. Subsidies furnish the only practicable form of assistance. i. To establish cargo bounties or dis- criminating duties is impracticable, x. Commercial treaties with foreign nations conflict. 2. To admit ■foreign vessels to American registry is impracticable. X. The ship-building industry would be destroyed. y. The higher cost of operating American vessels would not be affected. III. Further subsidies are desirable. A. They would bring great commercial advantages. I. The sum now paid to foreign carriers would be saved. 2. Shipping rates would be reduced. 3. New mar- kets would be developed, x. Mail facilities and ships secure trade. 4. The ship-building industry would be greatly benefited, x. Many new vessels would be needed. 5. General trade conditions would be im- proved. X. Resources would be developed, y. Em- ployment would be given to more capital and men. B. Subsidies would bring great political advantages. I. They would provide a strong fleet of auxiliary cruis- ers. 2. The argument that subsidies are class legis- lation, and hence politically undesirable, is unsound. X. They do not rest on the idea of helping one, but all, industries, y. Specific, and in many respects equiva- lent, services are rendered in return. 3. The argu- ifcnt that subsidies are unconstitutional is untenable. jrTvZongress is specifically authorized to regulate com- merce and to provide for the common defence and welfare of the nation. IV. The experience of this and other nations is favorable to subsidies. A. The experience of the United States is favorable. i. Subsidies were suc- cessful in the case of the Collins Line. x. The ocean 126 ECONOMICS steam fleet was increased, y. The marine supremacy was wrested from Great Britain. 2. They were success- ful in the case of the Pacific Mail Company, x. Bet- ter communications were established. 3. The present postal subsidy has been successful, x. The steam ton- nage in the foreign service has increased, y. Valuable services were rendered in the Spanish War. ^'^ B. The experience of Great Britain is favorable to subsidies. I. Needed mail routes and lines of communication have been maintained. 2. New markets have been secured and held. 3. A large and powerful auxiliary fleet has been provided. C. The experience of Ger- many is favorable. i. German trade and industry have been assisted. 2. A large and fleet marine has been secured. 3. Ship-building has rapidly advanced. D. The experience of France is favorable. i. The sailing fleet has been re-established. 2. Ship-building in general has received much benefit. E. The ex- perience of other nations is favorable. i. The experi- ence of Italy. 2. Of Norway and Sweden. 3. Of Japan. 4. Of Austria-Hungary. Brief for the Negative References : D. A. Wells, Our Merchant Marine ; J. D. J. Kelly, The Question of Ships ; John Codman, Free Ships ; John Codman, Shipping Subsidies and Bounties ; Senate ^t- ports, 47th Cong., 2nd Sess., No. 883, Pt. 2 ; 57th Cong., ist Sess., No. 201, Pt. 2; House Reports, 53d Cong., ist Sess., No. 148; S5th Cong., 3d Sess., No. 1886, Pj;. 2 ; 56th Cong., ist Sess., No. 890, Pts., 2, 3 ; North American Review, Vol. I2S. P- 544; Vol. 132, p. 559; Vol. 142, p. 478 ; Vol. 158, p. 2^7; Vol. 164, p. 75 ; VQjj-t72, p. 113; Vol. 176, p. 490; Journal of Political Economy, IX., 2^; XI., 446 ; Yale Review, XL, 38 ; American Review of Reviews, XXL, 326 ; XXIIL, SHIPPING SUBSIDIES 12/ 15-18, 200; Forum, XXVIII., 81; XXX., 463; Atlantic Monthly, LXXXIIL, 585 ; LXXXV., 387 ; Arena, XXV., 148 ; Annals of American Academy of Political and Social Science, XIX., 46 ; Popular Science Monthly, XXXIL, 289 ; World's Work, III., 1933; IV., 2029, 2191 ; Harper's Magazine, LXXVL, 434; Gunton's Magazine, X., 256; XIX., 113; XXI., 497; XXV., 163; XXVI., 197, 518; New Englander, LV., 133; Fortnightly Review, LXXVL, 61; Quarterly Re- 7'iew,Wo\. 199, p. 323; Nation, XXXIL, 106; LXIIL, 135; LXIX., 104; LXX., 123, 126; LXXL, 395, 442, 482, 503; LXXIL, 5, 389 ; LXXIIL, 294; LXXIV., 4, 166; LXXVL, 144, 430; Outlook, LXVL, 966; LXVIL, 98, 336, 387; LXXIX., 95 J Independent, LIL, 387, 472; LIIL, 185, 223. I. The shipping industry of the United States is not in an unsatisfactory condition. A. The amount of tonnage under American registry is highly satisfactory. I. The total documented tonnage is higher than ever before. 2. The tonnage in the coasting trade is higher than ever before. 3. The tonnage of vessels in the foreign trade is increasing. B. The total number of vessels engaged in trade is increasing. C. A larger per cent of exports and imports is carried in American vessels. D. The condition of the ship- building industry is very satisfactory. i. A large number of plants are engaged. 2. Much capital and many men are employed. 3. Many vessels are con- structed annually. E. The statement that American export trade has suffered for lack of American shipping is untrue. I. The export trade of the United States has grown enormously. 2. There has been no lack of ships. 3. Rates have been so cheap that American capital could not profitably compete. II. Further subsidies are unnecessary for the up- building of the shipping industry. A. The industry 128 ECONOMICS can care for itself without financial assistance. i. The decline of the industry in the last century was due to natural causes, x. To the Civil War. y. To the change from wood to iron. z. To the higher return offered by enterprises of other kinds. 2. The industry can be restored to its former place and prestige by natural methods, jr. The recent developments noted above prove this. B. The argument that subsidies are necessary to equalize conditions of competition is untenable. i. The cost of constructing vessels is no higher in the United States than abroad, w. Materials are as cheap, x. Machinery and tools are better. y. Labor if more expensive is more efficient, z. Ships are built here for foreign nations. 2. The cost of operation is not generally higher in the American than in the foreign service, x. American vessels employ for- eign seamen at foreign ports at foreign rates. _;'. Sub- sistence is not substantially higher in the American than in the foreign service. C. If any need exists for legislation it is for the admission of foreign vessels to American registry. i. This would double the amount of exports carried under the American flag. 2. The argument that free ships would kill the ship-building industry is unsound; x. Americans can now compete on equal terms with any nation, i'. We do in other industries. III. Further subsidies are undesirable. A. They are undesirable for economic reasons. i. They would be very expensive, x. The cost at the outset would be great, y. The demand would constantly be for larger sums. 2. No commensurate return would be received, x. Shipping rates would not be affected. y. New markets would not be opened. \'. Mail facilities SHIPPING SUBSIDIES 1 29 are at present ample. 2'. Trade is a matter of business, not sentiment. 3. Bad management of shipping lines would be sure to follow, x. The healthful stimulus of enterprise resting on private skill would be wanting. B. Further subsidies are undesirable for political rea- sons. I. Subsidies are class legislation. x. They burden the people as a whole for the benefit of a single industry, y. A bounty on agricultural products could be given with as much justice. 2. Subsidies debauch public morals, x. Great opportunities are offered for corrupt practices. 3. Subsidies are uncon- stitutional. X. Taxation can only be for a public use. rV. The experience of this and other nations is un- favorable to subsidies. A. The experience of the United States is unfavorable. i. Subsidies were un- successful in the case of the Collins Line. x. An extravagant and unwise poHcy was encouraged, y. No manifest benefits were received. z. Failure resulted. 2. Subsidies were unsuccessful in the case of the Pacific Mail Company. w. Much money was spent, x. Trade was not increased, y. The general marine declined. z. Legislative corruption was flagrant. 3. The present postal subsidy has not been successful, x. Wholly ex- cessive charges have been paid. y. The increase in the marine has been immaterial. B. The experience of France is unfavorable to subsidies. i. Enormous sums have been spent. 2. The marine has steadily declined. C. The experience of Italy is unfavorable. I. No adequate return has been received for the money spent. D. The argument that the experience of Great Britain, of Germany, and of Norway is favorable to subsidies is untenable. I. The strength of the British marine is not due to subsidies. w. The vessels 9 I30 ECONOMICS subsidized are a small part of the whole marine, x. The total subsidy is small, y. No sum is bestowed for which an equivalent is not received, i'. In mail service. 2'. In building according to Admiralty requirements, z. No general bounties for construction or operation are given. 2. The strength of the German marine is not due to subsidies, x. Commercial skill and industry have been the controlling factors, y. Subsidies have been given only for specific services, z. No general remuneration is granted for construction or operation. 3. The strength of the marine of Norway and Sweden is not due to subsidies, x. But trifling sums have been spent. XVI TRUSTS Proposition : Further Federal legislation in respect to trusts and industrial combinations is desirable. Introduction General References: A. P. C. Griffin (Library of Con- gress), List of Books relating to Trusts (2nd ed.) ; Chautau- quan,'KXX., 237 (Bib.); C.J.Bullock, "Trust Literature," in Quarterly Journal of Economics, XV., 167 ; John Moody, The Truth about Trusts (Bib.) ; E. von Halle, Trusts (Bib.) ; R. T. Ely, Monopolies and Trusts; E. S. Meade, Trust Finance ; A. B. Nettleton, Trusts or Competition ? ; H. C. Macrosty, Trusts and the State ; Chicago Conference on Trusts ; Encyclopcedia Britannica,^KKX.ll\. (New), 460; New hiter- national Encyclopedia, XVL, 956; "Bills and Debates in Congress relating to Trusts," in Senate Documents, 5 7 th Cong., 2nd Sess., No. 147; United States Statutes at Large, XXVL, 209; XXXIL, Pt. I, pp. 828, 847; United States \. E. C. Knight Co., 156 United States Reports, i; Addyston Pipe and Steel Co. v. United States, 175 United States Reports, 211; United States v. Northern Securities Co., 1 20 Federal Reporter, 721 ; Annual Reports of the Commissioner of Corpo- rations ; Report of the Industrial Commission, I., II., XIII., XVIIL, XIX. (see Indexes) ; Bulletin of Department of Labor, No. 29 ; Twelfth Census, VII., Ixxv-xcii; " Trusts and Trade Combinations in Europe," in Special Consular Reports, Vol. 21, Pt. 3; House Reports, 50th Cong., ist Sess., No. 31 12; 132 ECONOMICS New York State Legislature, Report of the Joint Committee appointed to investigate Trusts (1897). I. The question is important. A. The trust prob- lem is by many regarded as the most important eco- nomic problem of to-day. i. Vast amounts of capital are involved. 2. Great masses of the community are affected, x. As independent producers, y. As con- sumers, z. As wage-earners. B. The question of further federal legislation has been much discussed. I. By the executive branch of the government. 2. By Congress. 3. By the press and public. II. It is generally admitted. A. That trusts, com- monly although not accurately speaking, are large cor- porations which, through the aggregation of capital, are able to control the whole or the greater part of an industry. B. That the most important Federal legis- lation in respect to trusts has been as follows: i. All combinations, contracts, and conspiracies in restraint of trade have been declared illegal. 2. A Bureau of Corporations has been established whose duty it is to collect data about trusts. 3. The giving and taking of railroad rebates has been made unlawful. III. The question whether there should be additional legislation by Congress seems to present five main issues. A. Are trusts a political evil? B. Are they an economic evil? C. Are they a social evil? D. Are they a financial evil? E. Is further Federal legislation desirable? Brief for the Affirmative References : J. W. Jenks, The Trust Problem (New ed.) ; G. H. Montague, Trusts of To-day ; C. W. Baker, Monopolies TRUSTS 133 and the People; J. M. Bonham, Railway Secrecy and Trusts; H. D. Lloyd, Wealth against Commonwealth ; W. M. Collier, The Trusts ; G. L. Bolen, Plain Facts as to the Trusts and the Tariff; Se?iate Documents, 5 7th Cong., 2nd Sess., No. 73; House Reports, 56th Cong., ist Sess., No. 1501 ; 57th Cong., 2nd Sess., No. 3375; W. D. P. Bliss, Encyclopedia of Social Reform, pp. 888, 1012, 1285, \t,\(>* Fo7-um, XXVI., 452; XXVII., 523 j XXVIII., 412; North American Review, Vol. 138, p. 535 ; Vol. 144, p. 277 ; Vol. 146, p. 509 ; Vol. 157, p. 30 ; Vol. 1 64, p. 294; Vol. 169, p. 210; Vol. 1 7 2, p. 906 ; Vol. 174, p. 778; Vol. 175, pp. 877, 895; Arena, XIX., 289; XXII., 191; XXIIL, 40; XXIV., I, 313, 569; XXV., 264; XXVI., 362; XXVIII., 449; XXIX., 414, 644; XXX., 200,337; Quarterly Jour7ial of Economics, 111., 117; XIV., 416; XV., 46, 371; Political Science Quarterly, IX., 486; XII., 212; XIII., 201; XV., 181; XVI., 463, XIX., 173; Publications of American Economic Association, 3d Ser., Vol. i, pp. 149— 211 ; 3d Ser., Vol. 5, p. 91 ; Annals of American Academy of Political and Social Science, V., 373 ; XV., 41 ; XVI., 345 ; XXIV., 89, 125 ; American Journal of Sociology, v., 228; VIII., 58, 456; IX., 208; Journal of Political Economy, VIII., 242; XII., 382, 525; Century, LX., 152; LXV., 148; LXVIII., 954; International Monthly, IV., 648; v., 127; Atlantic Monthly, LXXXV., 47; LXXXVII., 737; LXXXIX., 332; American Review of Reviews, XIX., 675; XX., 397, 455 ; XXI., 445 ; XXIL, 439, 578; Chautauquan, XXIX., 347 ; Fortnightly Review, LXXVIL, 650 ; Contem- porary Review, LVII., 829 ; Nineteenth Century, XXIX., 832 ; Outlook, LXXII., 113, 206, 880; Nation, XLVII., 125, 491 ; XLVIII., 108; XLIX., 186; LXXL, 4; LXXII., 448; LXXVIIL, 82; Independent, LI., 2602; LIL, 1456; LIIL, looi ; LIV., 2132, 2927; LV., 123, 539; LVII., 618. I. Trusts are a political eviL A. They destroy the right of the citizen to engage in lawful business as he pleases. i. Independent producers who refuse to 134 ECONOMICS sell to the trust are ruined. x. Through the control of transportation, y. By underselling, z. By intimi- dation. 2. Retailers who refuse to be dictated to are obliged to suspend, x. Other dealers are favored. B. Trusts have a corrupting influence on officials and institutions. i. Political parties are controlled, x. By subscriptions to campaign funds. 2. Favorable legis- lation is secured and unfavorable legislation avoided. X. By the illegal use of money. 3. Courts are im- properly influenced. 4. Officials are interfered with in the exercise of their duty. C. Trusts flagrantly abuse the privileges of the State. i. The privilege of incorporation is granted that the public good may be subserved. 2. Trusts secure incorporation to promote schemes impossible for individuals or part- nerships. II. Trusts are an economic evil. A. They injure consumers. i . They are able arbitrarily to raise prices. X. By the control of production, y. By stifling com- petition. 2. Statistics show that trusts have, in fact, raised prices. 3. The argument that trusts are able, through the' principle of combination, to lower prices, is unsound, x. There is a Umit to the cheapening of production, y. This limit is reached when the facilities of a single plant are utilized in the best manner, z. If favoritism and discrimination were stopped, cost of dis- tribution would be little less for the trust than for in- dependent producers. 4. The fact that trusts have lowered prices on certain articles furnishes no argu- ment in their support, x. Prices were reduced because lower wages were paid. y. Because raw materials were obtained cheaper. B. Trusts injure laborers. I. Many men have been thrown out of employment. TRUSTS 135 2. Wages in many industries are lower. 3. The power of unions has been checked, x. Any single plant can be closed without serious loss. C. Trusts injure producers. i. Producers are obliged to accept for raw material what the trust chooses to pay. x. The trust controls the market. D. The argument that trusts are an economic benefit to the nation is unten- able. I. They are not, as contended, necessary for competition in foreign trade, x. The success of the United States in foreign trade has been due to causes remote from combination, i'. To better and cheaper raw material. 2'. To better labor, y. Industry abroad is not organized as it is in the United States. 2. Trusts are not, as contended, necessary in order to compete for large contracts, x. Independent concerns, organ- ized on a large basis, have ample capital, y. They have ample facilities. III. Trusts are a social evil. A. They are re- sponsible for great social inequality. i. The rich are made richer, x. Vast fortunes are easily and rapidly accumulated. 2. The poor are made poorer, x. A decreasing share of the total production of wealth is secured by labor. 3. Personal relations between employer and employee are impossible. B. Trusts sink commercial character and individuality. i. Small dealers, even if not directly interfered with, cannot successfully continue, x. They are unable to com- pete. 2. Employees are reduced to mere machines. X. Self-reliance is unnecessary, y. Responsibility is lost.- z. Opportunity is checked. C. Trusts accelerate the movement of population to cities. i. Plants in smaller communities are closed. 2. Industry is concentrated in a few important trade centres. 136 ECONOMICS IV. Trusts are a financial evil. A. They bring about general financial instability. i. Great quanti- ties of worthless securities are placed upon the market. X. Companies are over-capitalized, y. Stocks are wat- ered. 2. Banks and trust companies are tempted to unsound financial undertakings. B. Trusts injure legitimate investors. i. Securities are unloaded on investors at fraudulent and fictitious prices. 2. Ex- orbitant fees are paid to those who do not earn them. X. To promoters, y. To underwriters. 3. Business affairs are badly managed, x. Corporations are con- trolled for the benefit of the directors as stock-traders, not for the profit of the shareholders, y. Dividends are paid out of capital. C. Trusts encourage wide- spread gambling and stock speculation. i. A market is created for poor securities by clever manipulation. 2. Manipulation is the basis for all speculation in stocks. V. Further Federal legislation is desirable. A. Trusts in the United States are growing in power and importance. i. A large part of the gross production of manufacturing industries is now made by them. 2. Combination in new industries and the absorption of new concerns is rapidly going on. B. State legislation has proved inexpedient. i. State control has been notoriously lax and pliant. 2. There has been no uniformity or comity in State action. X. What is freely permitted by one is forbidden by another. 3. Trusts are national in scope and influ- ence. X. Production is carried on in many States. y. Distribution in all. z. Stock is held throughout the country. C. The present Federal legislation has proved inadequate. i. Unfair competition goes on. TRUSTS 137 2. Consumers pay monopoly prices. 3. Vast fortunes are still accumulated at the expense of the State. 4. Investors are imposed upon. D. Further Federal legislation of many sorts is expedient and feasible. I. A constitutional amendment giving full power to Congress may be adopted. 2. The power of taxation may be utilized. 3. The control of the mails may be exercised. 4. Patent laws may be amended. 5. The power to regulate commerce may be invoked, x. To permit or compel corporations to organize under Fed- eral charters, y. To permit or compel them to secure a Federal license to transact interstate business, z-. To control by a commission similar to the Interstate Com- merce Commission. Brief for the Negative References : George Gunton, Trusts and the Public ; J. B. Clark, The Control of Trusts ; J. R. Dos Passos, Commercial Trusts ; S. C. T. Dodd, Combinations ; their Uses and Abuses ; The Trust ; Its Book (Bib.) ; Corporations and Public Welfare, p. 109 ; Forum, V., 584 ; VIII., 61 ; XXVII., 257, 268; XXVIIL, 732; XXX., 286; XXXI., 213; North American Review, Vol. 136, p. 181; Vol. 148, p. 141; Vol. 164, p. 719; Vol. 169, p. 375; Vol. 170, p. 244; Vol. 172, p. 641 ; Vol. 17s, p. 877 ; Vol. 179, p. 420 ; Politi- cal Science Quarterly, II., 45, 63 ; III., 385, 572 ; XII., 622 ; XVIII., I, 462; Arena, XXII., 301; XXIII., 617; XXIV., 405 ; XXIX., 63 ; Popular Science Monthly, XXXIII. , 42 ; XXXIV., 619 ; XLIV., 740 ; XLV., 289 ; Scribner's Magazine, XXVI., 604; XXVII., 379; Gunton's Magazine, XI., 402; XII., 251, 258, 334 ; XIII., 9, 251 ; XIV., 158 ; XVI., 443 ; XVII., 81, 168; XVIIL, 143; XlX., 209,344; XX., 117; XXIV., 95, 189 ; XXV., i, 295 ; Annals of American Acad- emy of Political and Social Science, V., 569 ; XV., 69 ; XXIV., 138 ECONOMICS 113; Yale Review, VII., 72; VIII., 362; International Journal of Ethics, IV., 321; X., 273; XII., 59; Econo7nic Review, XIV., i ; Journal of Political Economy, VIII., i, 19; Quarterly Journal of Economics, XVI., 94; Century, LX., 143 ; Atlantic Monthly, LXXIX., 377 ; American Review of Reviews, XX., 305 ; International Quarterly, IX., 394 ; In- ternational Monthly, IV., 648 ; Contemporary Revieiv, LXXX., 177, 333; Fortnightly Review, LXXVI., 76; Nation, LXX., 392, 431; LXXI., 166; Independent, LI., 2634, 3375; LII., 540, 645 ; Public Opinion, XXIL, 296. I. Trusts are an economic benefit. A. They bene- fit consumers. l. The consumer gets better goods. X. Better raw materials are used. y. Goods are made under sanitary conditions, z. Adulteration is much less frequent. 2. The consumer pdys lower prices. X. The cost of production is less. i'. Abler men are employed. 2'. Fewer plants are necessary. 3'. Each plant is utilized to the best advantage. 4'. The best business and mechanical facilities are employed. 5'. Raw material is bought on the largest scale, by the most experienced buyers, for cash. 6'. Over-production is avoided, y. The cost of distribution is less. i'. Trans- portation is cheaper. 2'. Advertising is less expensive, 3'. Bad credits are fewer. 4'. Salesmen and middlemen are dispensed with. 5'. Charges for storage, interest, and insurance are less. 3. The argument that the consumer is not benefited" because competition is destroyed is untenable, x. Unrestricted competition is harmful, i'. It produces shoddy goods. 2'. Low wages. 3'. Panics. 4'. Waste, y. Combination does not destroy competition, i'. Independent production con- tinues. 2'. New capital is always seeking an outlet. 3'. Foreign producers are ready to step in. 4. The real interest of the trust is to secure increased sales at de- TRUSTS 139 creased prices, x. If prices are raised the purchaser will substitute. B. Trusts benefit producers. i. Pro- ducers are guaranteed a constant and a stable market. 2. They are assured a fair price. C. Trusts benefit the nation. i. They have made possible the gigantic commercial enterprises of the day. 2. They have greatly increased export trade. 3. The argument that these benefits could be attained through independent effort is untenable, x. There would be insufficient capital. ^4.' Facilities would be inadequate. II. Trusts are a social benefit. A. They have greatly improved the condition of the laboring class. I. More men are employed, x. In the production of raw material. _;'. In the increased production of goods for the foreign trade, z. In transportation and distri- bution. 2. Hours of work are shorter. 3. Better wages are paid. 4. Payment is assured. 5. Em- ployment is constant and regular. 6. The health and general welfare of employees is more carefully guarded. 7. More efficient organization of labor is possible. B. Trusts have lessened the strife between capital and labor. I. Improved conditions have made labor more contented. 2. Organized capital has more sympathy for organized labor. 3. Trade agreements are com- mon. C. Trusts give better opportunities for the promotion and advancement of employees. i. Per- sonal favoritism is less likely. 2. Ability only counts. D. The argument that trusts check the development of individuality is untenable. i. Directors are always on the lookout for branch managers and men who can be placed in positions of responsibility. 2. Railroad organizations, it is generally conceded, have always developed a high degree of individuality in officials. I40 ECONOMICS 3. More skill is required to manage superiors than inferiors. E. The argument that trusts are a social evil because they tend to concentrate the industrial population is untenable. i. The condition of wage- earners is much better in cities than in the country. X. Opportunities for improvement are greater, y. The average of intelligence and well-being is higher. m. Trusts are a financial benefit. A. They give stability to the business world. i. They develop the best financial talent. 2. They avert panics and periods of depression, x. Demand and supply are gauged with greater precision. B. Trusts furnish excellent op- portunities for investment. I. Large returns are made possible to investors through combination. 2. The argument that trusts are injurious to investors because of over-capitalization and stock-watering is untenable. X. The face value of securities is simply an estimate of potential earning power, y. The number of securities represents a fraction, great or small, of the total capital. z. Quotations soon establish actual value. 3. The ar- gument that trusts are injurious to investors because of bad business management is untenable, x. The stabil- ity and business organization of industrial combinations as a whole must not be judged by a few notable exceptions. IV. The arguments advanced to prove that trusts are a political evil are unsound. A. The argument that they are monopolies is unsound. i. No trusts in the United States control the entire output. 2. Combina- tion does not necessarily make monopoly. 3. Mo- nopoly is objectionable only in so far as it raises prices. 4. The government every day creates the most effective monopolies, x. Patents, y. Copyrights. B. The TRUSTS 141 argument that trusts are a political evil because they prevent independent producers from engaging in busi- ness is untenable. i. Unfair competition is not an essential feature of industrial combinations. 2. Un- fair competition has been almost wholly eliminated. X. By the prohibition of railroad rebates. C. The argument that trusts are an evil because they induce political dishonesty is of little weight. I. Corruption exists only in rare and exceptional cases. 2. It is no more common than it was before combinations became general. 3. The obvious remedy is to select better officials. V. Further Federal legislation would be undesirable. A. It could accomplish no good end. i. So far as abuses have arisen they are amply met by present legislation, x. Combinations and conspiracies in re- straint of trade are forbidden, y. Unfair competition has been prevented, z. Publicity in the widest sense is assured. 2. So far as legislation might attempt to check the principle of combination it would be un- availing. X. The inevitable trend of industry cannot be checked by artificial law. B. Further Federal legislation would do much harm. i. Widespread business uncertainty would result. 2. The move- ment of capital to new enterprises would be seriously checked. 3. Panics and depression would probably follow. C. The legislation which has been espe- cially suggested is unwise and impracticable. i. To secure a constitutional amendment giving Congress complete power over industrial combinations is imprac- ticable. X. The consent of the States could never be obtained. 2. To incorporate combinations under the interstate commerce clause would be unconstitutional. 142 ECONOMICS X. Federal incorporation is permissible only to carry out well-defined Federal powers, y. Manufacturing corporations execute no Federal powers. 3. To com- pel corporations doing an interstate business to secure a Federal license, would be very unwise, x. A large part of the business of the country would be removed from the control of the States to the hands of Federal officials, y. The State judiciaries would lose much of their importance, z. The harmful tendency towards centralization would be greatly strengthened. XVII AN ASSET CURRENCY Proposition: National banks should be permitted to issue notes based on their general assets. Introduction General References : Horace White, Money and Banking (2nd ed.), Bk. III. and Appendixes (Bib.) ; Sound Currency, VIL, No. 12 (Bib.) ; C. A. Conant, History of Modern Banks of Issue (Bib.) ; J. J. Knox, History of Banking ; A. B. Hep- burn, History of Coinage and Currency in the United States (Bib.) ; C. F. Dunbar, Chapters on Banking (2nd ed.) ; Senate Executive Documents, 52nd Cong., 2nd Sess., No. 38 (Bib.) ; " Coinage, Currency, and Banking Laws of tiie United States," in Sound Currency, II., No. 17; VIII., No. 2; Re- vised Statutes of the United States, Sees. 5157-5189 ; Supple- ment to the Revised Statutes (2nd ed.), I., 27, 353 ; Statutes at Large, XXXI., 48, 49 ; New International Encyclopcedia, II., 434-439 ; Encyclopedia Americana, II. (Banks and Banking) ; Report of the Monetary Commission of the Indianapolis Con- vention ; House Reports, 53d Cong., 3d Sess., No. 1508; Forum, XXIX., 129; Yale Review, VIL, 50; Quarterly Jour- nal of Economics, XVIIL, 114; Chautauquan, XVI., 32; Journal of Political Economy, HI., loi ; Banker's Magazine (New York), LII. — ; Annual Reports of the Secretary of the Treasury and the Comptroller of the Currency ; Proceed- ings of the Annual Conventions of the American Banker's Association. 144 ECONOMICS I. The question is important. A. The present system of note issue by national banks is by many regarded as defective. B. Many believe that for it an issue based on general assets should be adopted. C. By others, both of these propositions are denied. n. It is generally admitted. A. That the present system of note issue is as follows: I. National banks may issue notes to the par value of government bonds purchased and. deposited as security with the Comp- troller of the Currency. 2. They must maintain with the Comptroller a redemption fund of five per cent of their outstanding issue. B. The essential features of the proposed change are as follows: i. Banks would be permitted to issue notes up to a certain per cent of their capital. 2. They would be obliged to maintain a common fund for the redemption of the notes of failed banks. 3. Notes would be a first lien on all assets and a claim on shareholders to the amount of their holdings. III. The question whether this change should be adopted seems to present four main issues. A. Is the present system of note issue defective? B. Would the asserted evils of the present system be remedied by the adoption of the system proposed ? C. Would the proposed system be safe? D. Is the experience of banking organizations favorable to the proposed system ? Brief for the Affirmative References: Sound Currency, II., Nos. i, 2, 5, 8, 9, 13; III., Nos. 9, 22, 23 ; IV., Nos. 2-4, 6, 9-1 1, 19, 22, 23 ; V., Nos. I, 3, 10, 12, 14, 17, 23; VI., Nos. 4, 9-12; VII., Nos. 3, 4 ; VIII., Nos. I, 4 ; IX., Nos. 2-4 ; X., Nos. 1-4 ; XI., AN ASSET CURRENCY 145 Nos. I, 2 ; House Reports, sand Cong., 2nd Sess., No. 2584 ; 55th Cong., 2nd Sess., No. 1575; 56th Cong., 2nd Sess., No. 2955 ; 57th Cong., ist Sess., No. 1425 ; 57th Cong., 2nd Sess., No. 3148, Pts. I, 2 ; Forum, XII., 476, 772 ; XIII., 325, 725; XVIII., 385, 641; XX., 5 13 J XXIV., 303; North American Review, No\. 166, p. 172; Vol. 173, p. 854; Vol. 177, p. 487 ; Quarterly Journal of Economics, VII., 55 ; XII., 307 ; Political Science Quarterly, XV., 495 ; Annals of Ameri- can Academy of Political and Social Science, III., 529, 559, 573, 581 ; Journal of Social Science, XXXVIII., 212 ; Publi- cations of American Economic Association, X., Nos. 1-3 ; Economic Studies, IV., 31 ; Journal of Political Economy, VI., 93, 311; VII., 253; X., 119; Century, LV,, 627; Nation, LXVII., 197; LXXV., 438; LXXVIL, 99, 200, 334. 356. I. The present system of note issue is defective. A. It was founded on an emergency. I. The design was primarily to furnish a market for government bonds, not to provide a banking system. B. The system rests on an improper basis. i. On long-term, non- liquid investments which bear no relation to business transactions. 2. On the maintenance of a public debt. 3. On the continued dependence of banks on the government. C. The system has proved ill- adapted to business needs. i. When the demand for currency is greatest, the supply is least, x. The cost makes it profitable at such times to retire rather than to issue notes, y. Even if banks wish to increase their issue, much time is required to purchase and deposit bonds. 2. When the demand for currency is least, the supply is greatest, x. At such times only is circu- lation profitable, y. Even if banks wish to retire their issue, the process is difficult. i'. They have no power to redeem directly. D. This lack of adaptability 146 ECONOMICS to business needs has given rise to serious financial evils. I. Evils have been caused by the periodic strin- gency, w. The price of securities has rapidly fallen. X. There has been insufficient money to market the crops, jf. The gold reserve has been maintained vi^ith great difficulty, z. Financial panics have narrowly been averted. 2. Evils have been caused by the periodic redundancy. ;r. Deposits have been inflated. jy. Interest rates have been abnormally depressed. z. Speculative and hazardous undertakings have been encouraged. 3. Evils have arisen due to both causes. X. Money has been transihitted at great expense. J/. Rates of interest have fluctuated widely. n. The evils of the present system would be remedied by the adoption of the change proposed. A. The system of note issue would be placed on a proper basis. i. It would rest on easily convertible business assets. 2. The necessity for maintaining a public debt would be done away with. B. The currency would be better adapted to meet business needs. i. The periodic stringency and its attendant evils would cease, x. When the demand for currency was greatest the supply would be greatest, i'. The issue of notes would be profitable. 2'. It could be speedily accomplished. 2. The periodic redundancy and its attendant evils would cease, x. When the demand for currency grew less, the volume would de- crease, i'. The retirement of notes would be advanta- geous. . 2'. It could be simply and automatically carried out. 3. Other evils would be remedied, x. The necessity of transmitting currency would no longer arise, j/. Loans could be placed at more uniform and lower rates. AN ASSET CURRENCY 1 47 m. The proposed system would be safe. A. It would rest on an absolutely safe foundation. i. The entire exchangeable wealth of the country would be behind it. 2. If the private business of the land is not solvent, the public finances cannot be. B. The system would be carried on in a safe manner. i. There would be no danger of over-issue, x. Over-issue would be checked by daily calls for redemption, y. By the watchful interest of other banks, z. By the liability im- posed on officers and shareholders. 2. The argument that banks would be organized for fraudulent over- issue is untenable. x. The supervision of the Comp- troller would prevent this. 3. Dangerous expansion is much more likely to take the form of undue extension of credit than over-issue. C. The history of banking in the United States demonstrates the safety of an asset currency. i. In ante-bellum days the safest banks were those which based their issues on their business assets. 2. Under the National Banking Act a small annual tax would have been sufficient to have redeemed the notes of all failed banks had there been no bond security. IV. The experience of banking organizations is favorable to the proposed system. A. An asset currency has been successful in Europe. i. In France. 2. Germany. 3. Scotland. 4. Holland. 5. Bel- gium. 6. Austria-Hungary. B. It has been suc- cessful in Canada. C. It has been successful in the United States. i. In the Suffolk system. 2. In the New York system. 3. The argument that our experi- ence with wildcat banking should make us hesitate to adopt an asset currency is untenable, x. The evils of wildcat banking were due to lack of knowledge of what 148 ECONOMICS property was behind issues, y. To insufficient and im- proper supervision, z. To laclc of uniform methods. Brief for the Negative References: North American Review, Vol. 178, p. 388; Forum, XII., 186, 483; XXII., 182; Political Science Quar- terly, XI., 133; Are7ia, XIX., 602; XX., 39; XXI., 151; XXII., 740; XXX., 382; Annals of American Academy of Political and Social Science, III., 597; XI., 191 ; XIII., 31. I. The present system of note issue is excellent. A. The system has given a pre-eminently safe issue. I. Not a dollar has been lost by a note-holder since the National Banking Act went into effect 2. Notes are good whether a bank has assets or not. B. The present system has given a uniform issue. i. Notes of national banks are accepted throughout the country without scrutiny. 2. The fact that a bank may be in liquidation does not affect the currency of its notes. C. The charge that the present system compels the maintenance of undesirable relations between national banks and the government is untenable. i. The con- nection has been mutually advantageous. 2. There is little likelihood that the nation will ever be free from a bonded debt. D. The charge that the present system has not provided a sufficiently elastic currency is much exaggerated. i. Practical evils of weight due to inelasticity cannot be shown, w. The country has been continuously and progressively prosperous. X. Statistics show no connection between speculation and an abundant currency, y. No amount of currency will prevent financial panics, z. The gold reserve has been endangered by other causes. 2. Whatever the- AN ASSET CURRENCY 1 49 oretical inelasticity may have existed, the currency has now been made sufficient to meet all demands, x. By the formation of new banks with a small capital, j. By the increase of gold certificates, z. By the growth of check and deposit accounts. II. The proposed system would not be safe. A. It would not rest on a safe foundation. I. The value of business credits depends on the judgment of each banker. 2. Even under the most careful management their value is fluctuating. 3. The best banks would not issue circulation, x. They would refuse to be held liable for the shortcomings of persons wholly uncon- nected with them. 4. In times of panic an additional menace to credit would be offered, x. With the de- mand for the redemption of notes would be coupled a demand for deposits. B. The system could not be safely carried on. I. Too many banks would en- gage in issue. x. Too many now have the privilege. y. Many private banks would seek national charters. z. A few large central institutions are essential to the success of any credit currency. 2. Over-issue would be inevitable, x. The temptation to realize when large profits were possible would be irresistible, j. Banks would be organized for the sole purpose of fraudulent over-issue. C. The history of banking in the United States shows the lack of safety in an asset currency. I. The wildcat issues of the period before the Civil War were based on business assets. 2. The fact that a comparatively small fund would have covered losses by bank failures under the National Banking Act proves nothing, x. Many more banks would issue, y. The supervision of the government would be less strict. s. Banks would not be so conservatively managed. 150 ECONOMICS m. The experience of banking organizations argues nothing for the proposed system. A. Conditions in Europe are wholly different from conditions in the United States. i. There is a small number of large banks. 2. The area of business activity is small. B. Conditions in Canada are different. i. The right of issue is restricted to a few large banks. 2. The deposit business is unimportant. 3. The country is sparsely settled. 4. The need for banking facilities is slight. C. Conditions in the United States under which, it is contended, asset systems were a success were wholly different. i. The Suffolk and New York systems included but a few banks. 2. Business was confined to a small territory. 3. Personal supervision and an exact knowledge of conditions were possible. XVIII POSTAL SAVINGS BANKS Proposition: A system of postal savings banks should be established in the United States. Introduction General References : J. H. Hamilton, Savings and Sav- ings Institutions (Bib.) ; William Lewins, History of Banks for Savings ; W. M. Handy, Banking Systems of the World, Chap. i6; " History of Savings Banks in the United States," in History of Banking in all Nations, II., 439 ; J. G. Dater, Savings Banks and Safe Securities ; W. D. P. Bliss, Encyclo- pedia of Social Reform, pp. 1066, 12 16; New International Encyclopcedia, XIV., 421; Encyclopcedia Britannica, XIX., 572 ; XXXI. (New), 863 ; " Postal Savings Banks in Foreign Countries," in Senate Documents, 55 th Cong., ist Sess., No. 154; Senate Documents, 55th Cong., 2nd Sess., No. 39 ; Annual Report of the Secretary of the Treasury, i8g'/, p. 362. I. The question is important. A. Postal banks have been advocated by many Postmasters-General. B. Many bills providing for their organization have been introduced in Congress. C. They are in oper- ation in nearly all European countries. II. It is generally admitted. A. That institutions of any kind for savings are of great value. i. They encourage thrift. 2. They promote happiness and 152 ECONOMICS well-being. 3. They check extravagance and need- less expenditure. B. Agencies for this purpose in the United States are now carried on by private enter- • prise. C. A plan for postal banks, widely advocated, is as follows: i. Certain post-offices should be desig- nated as banks of deposit. 2. The amount of money received by them would be limited. 3. A low rate of interest would be paid. ni. The question whether this plan should be adopted seems to present four main issues. A. Is there need for better facilities for saving in the United States? B. Would better facilities be provided by postal banks? C. Would postal banks be beneficial for other reasons? D. Are postal banks in the United States practicable? Brief for the Affirmative References : R. A. Dague, A Postal Banking System ; Frank Parsons, TAe Story of New Zealand, Chap. 15 ; S. K. Bolton, Social Studies in England, p. 143 ; Senate Reports, S5th Cong., 3d Sess., No. .1504; Senate Miscellaneous Docu- ments, 5 1 St Cong., 2nd Sess., No. 91; Senate Documents, S5th Cong., 2nd Sess., No. 92; House Reports, 47th Cong., ist Sess., No. 473 ; 51st Cong., 2nd Sess., No. 4002 ; Annual Report of the Postmaster-General, iS^i-iSyj, 1880-1882, i88g-i8gi, i8g8 ; Munsey's Magazine, XIX., 387; Annals of American Academy of Political and Social Science, VIII., 461 ; XI., 44; XVIIL, 98; Quarterly Journal of Economics, XIII., 45 ; Journal of Political Economy, V., 505 ; VIII., 145; Arena, XXXIII., 31; Forum, XXL, 228; Popular Science Monthly, XXVIII., 160; Journal of Social Science, XXIL, 156; Chautauquan, XXVI., 408; National Magazine, X., 421 ; Penn Monthly, III., 92; IX., 443, 501 ; Banker's Magazine (New York), XXXII., 467, 718; XXXIX., 363, POSTAL SAVINGS BANKS 153 437 ; XLVII., 452 ; XLVIIL, 545 ; Edinburgh Review, Vol. 138, p. 94 ; Vol. 176, p. 485 ; Contemporary Review, XXXIX., 780; LXXIX., 278 j Journal of the Royal Statistical Society, LX., 278 ; Nation, XXVI., 223 ; XLIV., 315 ; Spectator, LVII., 1005; Outlook, LXXVIL, 118. I. There is need for better facilities for saving in the United States. A. The security offered by exist- ing institutions is inadequate. i. The banking laws of many States are loose and unsatisfactory. 2. Banks do not enjoy popular confidence. 3. Failures are frequent, x. A larger proportion of savings banks fail than of any other kind. B. The number and distri- bution of existing institutions is inadequate. I. Banks are confined chiefly to the New England and Middle States. 2. The South and West have almost none. 3. The statement that there is no need for new banks in the South and West is untrue, x. The need is well shown by the number of money orders purchased in these sections payable to the purchasers. C. The accommodations offered by existing institutions are in- adequate. I. Banks are inaccessible. 2. Hours are inconvenient. 3. Most banks refuse small deposits. D. The lack of proper facilities for saving has produced bad results. i. The people have been deterred from saving, x. The number of depositors in the United States is less than it should be. y. The amount of money deposited is less than it should be. 2. Habits of thrift and providence have not been inculcated. X. The people of the United States are the least provi- dent in the world. 3. .Much money has been kept from circulation by being hoarded. n. Better facilities for saving would be provided by a system of postal banks. A. Better opportuni- 154 ECONOMICS ties for saving would be provided. i. Places of deposit would be within reach of all. x. The post- office touches every community, however remote. B. Better security for savings would be provided. 1. There would be an absolute guarantee for the return of principal and interest, x. The credit of the government would be behind every deposit. C. Better accommodations for savings would be pro- vided. I. Banking hours would be more convenient. 2. The forms would be easily intelligible. 3. The smallest sums would be received. D. The argu- ment that a very low rate of interest only would be paid is immaterial. I. The need of the people is for more secure and more accessible places for deposit, not for larger monetary returns. III. Postal banks would be beneficial for other reasons. A. The government would be benefited. 1. It would be benefited politically, v. The people 'would be given a deeper interest in public affairs. w. A more conservative spirit would be inculcated. X. Contentment and happiness would be more wide- spread, y. The argument that postal banking is a paternal and hence an improper function for the gov- ernment is unsound, i'. It is no more paternal than the post-office itself, z. The argument that politi- cal corruption and dishonesty would be increased is unsound, i'. Few new employees would be required. 2'. Civil-service regulations would almost uniformly ap- ply. 3'. More important duties bring greater efficiency. 2. The government would be benefited financially by postal banks, v. The amount of money in circulation would be much increased, w. A large sum would be made available for borrowing purposes, x. The national POSTAL SAVINGS BANKS ISS debt would be placed in the hands of citizens, y. The objection that money would be withdrawn from rural communities and concentrated in cities is untenable, i'. The money or its equivalent would rapidly reappear for investment, z. The objection that postal banks would be expensive is untenable, i'. Running expenses would be more than met by the difference between the interest paid and that received. B. Private savings banks would be benefited. i. The habit of saving would be instilled into a greater number of persons. 2. Postal banks would act directly as feeders of ex;ist- ing institutions. 3. The argument that postal banks would compete injuriously with private banks is un- tenable. X. A wholly different class of depositors would be appealed to. y. A much lower rate of interest would be paid. z. The amount on deposit would be limited. 4. Foreign experience shows that postal banks are a help, not a hindrance, to private banks. IV. Postal banks in the United States are practi- cable. A. The post-office is admirably adapted for their administration. i. This is shown by the increas- ing efficiency and rapid growth of the money-order system. 2. By the success of the system of rural free delivery. 3. By the fact that no great modification of the present machinery would be necessary. B. The statement that the investment of funds presents an in- surmountable difficulty is untrue. i. National bonds furnish a field for accumulations of many years. 2. If the national debt be reduced, investment could be made in State and municipal bonds, x. The tendency of States and municipalities to undertake great public improvements is general. 3. Investment could be made in ordinary mortgage bonds. 4. A considerable 156 ECONOMICS amount could be loaned to national banks. C. The practicable character of postal banks is shown by their success in foreign countries. i. They have been suc- cessful in Great Britain, x. Large sums have been received on deposit, y. The number of individual de- positors is large and is constantly increasing, z. The administration of the system is attended with little dif- ficulty. 2. Postal banks have been successful in other countries. /. In France. u. Italy. v. Austria- Hungary, ui. Belgium, x. Russia, y. Japan, z. The British Colonies. Brief for the Negative References : J. H. Thiry, Postal Savings Banks; J. J. I^alor, Cydopadia of Political Science,!., 258; Gunion's Magazine, XIV., 73 ; Economic Review, VIII., 289 ; XIV., 313 ; Journal of Social Science, IX., 44; Banker's Magazine (New York), XLVII., 241; XLVIIL, 756; LIV., 815; LV., 333; LVL, 10) 37; 3S7> 3^7) 393! North American Review, Vol. 166, p. 342; Forum, XXIV., 471, 723; Arena, XVII., 947; World's Work, VII., 4074, 4245, 4589 ; Westminster Re%)iew, Vol. 147, p. 188; Nation, LXXVIL, 354. I. There is no need for further facilities for saving in the United States. A. The number of existing institutions is ample. i. There are many savings banks. 2. There are many other institutions perform- ing a similar function, x. Trust companies, y. Build- ing and loan associations, z. Private banking houses. 3. The statement that though the Eastern and Middle States may be well supplied, there is need for banks in the South and West, is untrue, x. In the South and West money is used for investment, not in saving. y. As soon as any real need arises, banks are rapidly POSTAL SAVINGS BANKS 157 supplied. B. The soundness of existing institutions for savings is undeniable. i. Supervision is constant and strict. 2. Failures are rare. 3. Banks have un- limited popular confidence. C. The return by exist- ing institutions to depositors is large. i. It exceeds that from the highest grade of investment securities. D. The accommodations offered by existing institutions are excellent. i. Most banks receive the smallest sums. 2. Banking hours and methods are adapted to the needs of every class. E. The adequacy of existing facilities is well shown by actual results. I. More money is deposited in savings banks in the United States than in any other cduntry. 2. The number of depositors includes a very large per cent of the population. 3. A work of enormous social and economic utility has been accomplished. n. Better facilities for saving would not be provided by a system of postal banks. A. The return to de- positors would be less. i. Government banks would pay a much lower rate of interest than private institu- tions. B. The security of savings, as a whole, would be less. i. The soundness of local institutions is often untouched by causes which undermine government credit. 2. The financial and banking experience of the United States has not been highly satisfactory. X. The government's part was discreditable in the case of the United States Bank. y. In the case of the Freedmen's Savings Bank. z. In the fiat currency craze. C. The accommodations afforded to deposi- tors by postal banks would be less satisfactory than by private institutions. i. Local concerns ar-e in closer touch with local needs and conditions. 2. The dif- ficulty of transacting business at government offices is 158 ECONOMICS well known, w. The machinery is slow and cumber- some. X. The hours are short, y. Clerks are ill-man- nered and inattentive, z. Mistakes of all kinds are constant. III. Postal banks would be injurious for other reasons. A. The government would be injured. i. It would be injured politically, x. Postal banking is a paternal and hence an improper function for the government, i'. The State should undertake nothing that private enterprise can successfully accomplish. 2'. The State might as well conduct insurance and building and loan companies. y. Postal banking would lead to other and more danger- ous socialistic schemes. l'. To the acquisition of rail- roads and the telegraph. 2. The government would be injured financially by postal banks, v. Loss from unprofitable investments and dishonest and inaccurate employees would be inevitable, w. The number of postal employees would be much increased, x. Sala- ries would be raised, y. Congress might be tempted to use savings funds for improper purposes, s. Popular agitation might compel the payment of a higher rate of interest than investments permitted. B. The people would be injured by postal banks. i. The development of borrowing sections would be paralyzed, x. Funds would be directed from local uses and concentrated in great cities. 2. The people as a whole would be taxed for the benefit of a few. C. Savings banks would be injured. i. Much of the business savings banks now enjoy would be diverted to government banks. 2. Many private institutions would be forced to sus- pend. X. In Great Britain the number of private institutions has steadily diminished since government banks were established. POSTAL SAVINGS BANKS 159 IV. Postal banks are impracticable in the United States. A. There would be no satisfactory way in which to invest funds. i. Investment in government bonds would be impracticable, x. The number of bonds outstanding is insufficient to cover the savings of more than a few years, y. The absorption of many bonds would undermine the national bank circulation, z. The policy of the nation is to pay its debt. 2. Investment in State or municipal bonds would be impracticable. X. The number is insufficient, y. The security is doubt- ful, z. The opportunity for political favoritism would be unlimited. 3. Investment in loans to national banks would be impracticable, x. The government would be obliged to guarantee the soundness of the banks. 4. Investment in real-estate mortgages would be im- practicable. X. Insurmountable difficulties of adminis- tration would be presented. B. The post-office department is incapable of satisfactorily conducting a system of postal banks. i. It performs very ill its present duties, x. The service is inadequate, l'. With the exception of the system of rural free delivery, no advance has been made in the past ten years, y. The administration is inefficient. i'. Officials are appointed for political and not for business reasons, z. The ad- ministration is very extravagant, i'. Exorbitant sums are paid for carrying the mails. 2'. There is a large annual deficit. 3'. The publishers of periodicals are subsidized. C. The argument that postal banks are practicable because they have been in successful opera- tion abroad, is unsound. i. Conditions in European countries are wholly different from conditions in the United States, w. Abroad, government debts furnish a ready and convenient field for investment, x. Popu- l6o ,^ ECONOMICS lation is compact, y. Private banking facilities are not so good. z. Postal banks are in accord with the paternal character of the governments. 2. The real success of postal banks abroad may well be doubted, x. In most instances they have simply received funds which would have gone to private institutions, y. The de- positors are chiefly those who have no need for special privileges. SOCIOLOGY SOCIOLOGY XIX GOVERNMENT OWNERSHIP OF RAILWAYS Proposition: The railways of the United States should be owned and operated by the government. Introduction General References : A. P. C. GrifBn (Library of Con- gress), List of Books relating to Railroads (1904) ; Frank Hendrick, Railway Control by Commissions ; B. H. Meyer, Railway Legislation in the United States ; J. R. Dos Passos, The Inter-State Commerce Act ; J. E. Le Rossognol, Monopolies Past and Present, Chap. 7 ; W. D. P. Bliss, Encyclopedia of Social Reform, pp. 754, 890, 917, 922, 1154, 1262, 1291; J. J. Lalor, Cyclopcedia of Political Science, III., 493 ; Encyclo- pedia Americana, XIII. (Railway — many articles); Report of the Industrial Commission, IV., IX., XII., XVII., XIX. (see Indexes) ; " Foreign Railway Ownership and Operation," in Senate Documents, ssth Cong., 2nd Sess., No. 158; Annual Reports of the Interstate Commerce Commission; United States Statutes at Large, XXIV., 379 ; XXV., 585 ; XXVL, 743 ; XXXIL, Pt. I, p. 847 ; State of New York, Report of the Special Committee on Railroads (1879) '> Proceedings of Eighth Annual Convention of Railroad Commissioners (1896), pp. 66- 88 ; Senate Reports, 49th Cong., ist Sess., No. 46, Pts. i, 2 ; Senate Miscellaneous Documents, 49th Cong., 2nd Sess., No. 66; Political Science Quarterly, XVIL, 394 ; Outlook, LXXVIL, 583 ; Poor's Manual of Railroads. l64 SOCIOLOGY I. The question is important. A. Railways have been called, next to printing, the greatest instruments of civilization. B. Immense amounts of capital are invested in them. C. Great masses of the com- munity are affected. i. As patrons; 2. As share- holders. 3. As employees. D. Federal control and operation has been much discussed. n. It is generally admitted. A. That there are in the world to-day three kinds of railway systems. I. Those owned and operated by the State. 2. Those owned by the State and leased to private companies. 3. Those owned by private companies, but subject to State control. B. That in the ■ United States the system is the last, the control being : i. By the Inter- state Commerce Commission. 2. By various State commissions. . C. Many who advocate a change pro- pose that the railways should be acquired and operated by the Federal government. in. Whether this change is desirable seems to de- pend on five main issues. A. Is the present system of railway ownership and control in the United States objectionable? B. Would the abuses of the present system, i£9 ter of valuable and not easily as- certained information. The serious reader cannot lay this volume aside without feeling that here is an im- portant contribution to the study of a subject which is of prime impor- tance to the national welfare and good name of the American people. ... It is the most thorough-going and complete discussion of the theme that has ever been published." Devas — Political Economy. By C. S. Devas, Esq., M.A., Examiner in Political Economy in the Royal University of Ireland. (Stonyhurst Philosophical Series.) Crown 8vo. 684 pages. $2.00. Enlarged, rewritten in many parts, and everywhere revised in view of the many changes in laws, economic conditions, and prevalent opinions since the first edition was published, this work presents an exhaustive study of the subject. The author has been encouraged to note that several views upheld in this book, and opposed to the current teaching of the time, are now widely recognized as true. AMERICAN QTIZEN SERIES Produced under the general Editorship of Albert Bushnell Hart, LL.D., of Harvard University. Wright's Outline of Practical Sociology. With Special Reference to American Conditions. By Carroll D. Wright, LL.D., formerly United States Commis- sioner of Labor ; President of Clark College. Large crown 8vo, with. 21 Maps and Diagrams. Fifth Edition, Revised. $2.00. Dewey's Financial History of the United States. By Davis Rich Dewey, Ph.D., Professor of Economics and Statis- tics, Massachusetts Institute of Technology. With 18 Specially Pre- pared Charts. Crown 8vo. Second Edition, Revised. $2.00. Hart's Actual Qovernment. As Applied Under American Conditions. By Albert Bushnell Hart, LL.D., Professor of History in Har- vard University; Author of " The Formation of the Union," etc., etc. With Illustrations, Maps, and Diagrams. Second Edition, Thoroughly Revised. $2.00. McCIain's Constitutional Law in the United States. By the Honorable Emlin McClain, Judge of the Supreme Court, Iowa, sometime Lecturer on Constitutional Law in the State Univer- sity of Iowa ; Author of " A Treatise on the Criminal Law," etc., etc. With Appendix of Documents, Index, etc. $2.00. Seligman's Principles of Economics. With Special Reference to American Conditions. By Edwin R. A. Seligman, Ph.D., LL.D., McVickar Professor of Political Economy, Columbia University. With Maps and Chaits, some of which are colored. $2.25. Lowell's Public Opinion and Popular Government. By A. Lawrence Lowell, Professor of Civil Government in Har- vard University; Author of "Government and Parties in Continental Europe," etc., etc. [Preparing Ripley's American Transportation Problems; Railroads and Waterways. By William Z. Ripley. Professor of Economics in Harvard Univer- sity. [Preparing LONGMANS, GREEN, & CO. 91-93 FIFTH AVE, NEW YORK